Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 - SEGMENT INFORMATION

For the three and nine months ended September 30, 2014 and 2013, 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 textile 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, 2014 and 2013 was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenue:
Forged rolled rings and related components	$	8,447,067		$	8,722,683		$	24,554,012		$	23,447,214
Dyeing and finishing equipment		11,799,488			9,490,825			30,855,832			25,865,127
		20,246,555			18,213,508			55,409,844			49,312,341
Depreciation:
Forged rolled rings and related components		1,208,415			1,065,933			3,632,810			3,171,777
Dyeing and finishing equipment		784,858			595,807			2,277,266			1,711,122
Other (a)		167,660			-			335,647			-
		2,160,933			1,661,740			6,245,723			4,882,899
Interest expense:
Forged rolled rings and related components		22,910			38,428			68,113			118,341
Dyeing and finishing equipment		37,577			36,210			110,200			125,950
		60,487			74,638			178,313			244,291
Net income (loss)
Forged rolled rings and related components		1,156,394			1,094,210			3,430,514			3,114,330
Dyeing and finishing equipment		1,702,327			1,248,012			4,375,925			3,467,999
Other (b)		(158,980	)		(211,486	)		(492,436	)		(506,440	)
	$	2,699,741		$	2,130,736		$	7,314,003		$	6,075,889

Identifiable long-lived tangible assets at September 30, 2014 and December 31, 2013 by segment:	September 30, 2014		December 31, 2013
Forged rolled rings and related components	$	40,053,060	$	43,987,670
Dyeing and finishing equipment		35,276,094		26,607,468
Equipment held for operating lease		4,382,777		4,751,206
	$	79,711,931	$	75,346,344

Identifiable long-lived tangible assets at September 30, 2014 and December 31, 2013 by geographical location:	September 30, 2014		December 31, 2013
China	$	79,711,931	$	75,346,344
United States		-		-
	$	79,711,931	$	75,346,344

(a) The Company does not allocate the depreciation for equipment held for operating lease to any operating segment.

(b) 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.