Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 - SEGMENT INFORMATION

For the three and nine months ended September 30, 2012 and 2011, the Company operated in two reportable business segments - (1) the manufacture of forged rolled rings and related components for the wind power and other industries segment, which also includes the manufacture of the Company’s solar industry products, and (2) the manufacture of dyeing and finishing equipment segment. The Company’s reportable segments are strategic business units that offer different products. They are managed separately based on the fundamental differences in their operations.  All of the Company’s operations are conducted in the PRC.

Information with respect to these reportable business segments for the three and nine months ended September 30, 2012 and 2011 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues:
Forged rolled rings and related components	$	9,826,210		$	7,608,796		$	23,619,875		$	29,733,041
Dyeing and finishing equipment		7,517,513			4,067,900			15,965,940			12,118,216
		17,343,723			11,676,696			39,585,815			41,851,257
Depreciation:
Forged rolled rings and related components		1,261,991			879,966			3,694,696			2,986,138
Dyeing and finishing equipment		365,267			267,443			1,025,073			665,030
		1,627,258			1,147,409			4,719,769			3,651,168
Interest expense:
Forged rolled rings and related components		66,494			60,452			196,690			122,980
Dyeing and finishing equipment		17,795			-			47,995			-
		84,289			60,452			244,685			122,980
Net income (loss):
Forged rolled rings and related components		1,270,837			838,628			2,347,542			4,329,039
Dyeing and finishing equipment		1,201,156			463,156			2,117,296			1,292,804
Other (a)		(116,891	)		(166,794	)		(735,571	)		(651,734	)
	$	2,355,102		$	1,134,990		$	3,729,267		$	4,970,109

Identifiable long-lived tangible assets at September 30, 2012 and December 31, 2011 by segment:
	September 30, 2012		December 31, 2011
Forged rolled rings and related components	$	51,194,448	$	51,930,395
Dyeing and finishing equipment		14,771,371		12,111,684
	$	65,965,819	$	64,042,079

Identifiable long-lived tangible assets at September 30, 2012 and December 31, 2011 by geographical location:
	September 30, 2012		December 31, 2011
China	$	65,965,819	$	64,042,079
United States		-		-
	$	65,965,819	$	64,042,079

 (a)      The Company does not allocate any general and administrative expenses of its U.S. activities to its reportable segments, because these activities are managed at a corporate level.