Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 - SEGMENT INFORMATION

For the three and nine months ended September 30, 2013 and 2012, 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, 2013 and 2012 was as follows:

	Three Months Ended  September 30,						Nine Months Ended  September 30,
	2013			2012			2013			2012
Revenues:
Forged rolled rings and related components	$	8,722,683		$	9,826,210		$	23,447,214		$	23,619,875
Dyeing and finishing equipment		9,490,825			7,517,513			25,865,127			15,965,940
		18,213,508			17,343,723			49,312,341			39,585,815
Depreciation:
Forged rolled rings and related components		1,065,933			1,261,991			3,171,777			3,694,696
Dyeing and finishing equipment		595,807			365,267			1,711,122			1,025,073
		1,661,740			1,627,258			4,882,899			4,719,769
Interest expense:
Forged rolled rings and related components		38,428			66,494			118,341			196,690
Dyeing and finishing equipment		36,210			17,795			125,950			47,995
		74,638			84,289			244,291			244,685
Net income (loss):
Forged rolled rings and related components		1,094,210			1,270,837			3,114,330			2,347,542
Dyeing and finishing equipment		1,248,012			1,201,156			3,467,999			2,117,296
Other (a)		(211,486	)		(116,891	)		(506,440	)		(735,571	)
	$	2,130,736		$	2,355,102		$	6,075,889		$	3,729,267

Identifiable long-lived tangible assets at September 30, 2013 and December 31, 2012 by segment:	September 30, 2013		December 31, 2012
Forged rolled rings and related components	$	44,867,148	$	40,636,142
Dyeing and finishing equipment		21,831,943		18,799,958
	$	66,699,091	$	59,436,100
Identifiable long-lived tangible assets at September 30, 2013 and December 31, 2012 by geographical location:	September 30, 2013			December 31, 2012
China	$	66,699,091	$	59,436,100
United States		-		-
	$	66,699,091	$	59,436,100

(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.