Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 – SEGMENT INFORMATION

For the three and six months ended June 30, 2015, the Company operated in three reportable business segments - (1) the manufacture of forged rolled rings and related components segment, (2) the manufacture of textile dyeing and finishing equipment segment, and (3) the manufacture of petroleum and chemical equipment segment. For the three and six months ended June 30, 2014, the Company operated in two reportable business segments - (1) the manufacture of forged rolled rings and related components segment, 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 six months ended June 30, 2015 and 2014 was as follows:

	Three Months Ended  June 30,						Six Months Ended  June 30,
	2015			2014			2015			2014
Revenues
Forged rolled rings and related components	$	2,999,002		$	7,849,812		$	10,272,614		$	16,106,945
Dyeing and finishing equipment		8,612,954			9,678,206			15,136,306			19,056,344
Petroleum and chemical equipment		3,578,644			-			5,428,145			-
		15,190,600			17,528,018			30,837,065			35,163,289
Depreciation
Forged rolled rings and related components		703,626			1,207,337			1,402,067			2,424,395
Dyeing and finishing equipment		859,913			744,192			1,721,997			1,492,408
Petroleum and chemical equipment		506,468			-			1,020,450			-
Other (a)		-			167,987			-			167,987
		2,070,007			2,119,516			4,144,514			4,084,790
Interest expense
Forged rolled rings and related components		6,901			22,638			15,005			45,203
Dyeing and finishing equipment		36,255			37,461			71,913			72,623
Petroleum and chemical equipment		13,472			-			27,053			-
		56,628			60,099			113,971			117,826
Net income (loss)
Forged rolled rings and related components		(25,075	)		1,044,684			588,588			2,274,120
Dyeing and finishing equipment		1,161,616			1,328,042			1,909,832			2,673,598
Petroleum and chemical equipment		159,435			-			385,864			-
Other (b)		(69,406	)		(154,822	)		(415,280	)		(333,456	)
	$	1,226,570		$	2,217,904		$	2,469,004		$	4,614,262

Identifiable long-lived tangible assets at June 30, 2015 and December 31, 2014 by segment	June 30, 2015		December 31, 2014
Forged rolled rings and related components (c)	$	21,383,333	$	38,937,371
Dyeing and finishing equipment		29,217,971		30,691,226
Petroleum and chemical equipment (c)		15,440,424		-
Equipment held for sale		425,988		422,540
	$	66,467,716	$	70,051,137

Identifiable long-lived tangible assets at June 30, 2015 and December 31, 2014 by geographical location	June 30,  2015		December 31,  2014
China	$	66,467,716	$	70,051,137
United States		-		-
	$	66,467,716	$	70,051,137

(a) The Company does not allocate the depreciation for equipment held for sale 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.

(c) Reflects reclassification of property and equipment previously used in the forged rolled rings and related components segment to petroleum and chemical equipment segment.