Segment Information

9 Months Ended

Sep. 30, 2015

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 – SEGMENT INFORMATION

For the three and nine months ended September 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 nine months ended September 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 nine months ended September 30, 2015 and 2014 was as follows:

	Three Months Ended  September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Revenues
Forged rolled rings and related components	$	1,420,348		$	8,447,067		$	11,692,962		$	24,554,012
Dyeing and finishing equipment		8,355,273			11,799,488			23,491,579			30,855,832
Petroleum and chemical equipment		2,249,812			-			7,677,957			-
		12,025,433			20,246,555			42,862,498			55,409,844
Depreciation
Forged rolled rings and related components		684,422			1,208,415			2,086,489			3,632,810
Dyeing and finishing equipment		850,480			784,858			2,572,477			2,277,266
Petroleum and chemical equipment		487,483			-			1,507,933			-
Other (a)		-			167,660			-			335,647
		2,022,385			2,160,933			6,166,899			6,245,723
Interest expense
Forged rolled rings and related components		12,735			22,910			27,740			68,113
Dyeing and finishing equipment		35,561			37,577			107,474			110,200
Petroleum and chemical equipment		12,835			-			39,888			-
		61,131			60,487			175,102			178,313
Net income (loss)
Forged rolled rings and related components		(302,083	)		1,156,394			286,505			3,430,514
Dyeing and finishing equipment		1,170,705			1,702,327			3,080,537			4,375,925
Petroleum and chemical equipment		114,609			-			500,473			-
Other (b)		(79,100	)		(158,980	)		(494,380	)		(492,436	)
	$	904,131		$	2,699,741		$	3,373,135		$	7,314,003

Identifiable long-lived tangible assets at September 30, 2015 and December 31, 2014 by segment	September 30, 2015		December 31,  2014
Forged rolled rings and related components (c)	$	19,817,335	$	38,937,371
Dyeing and finishing equipment		27,168,582		30,691,226
Petroleum and chemical equipment (c)		14,316,108		-
Equipment held for sale		408,222		422,540
	$	61,710,247	$	70,051,137
Identifiable long-lived tangible assets at September 30, 2015 and December 31, 2014 by geographical location	September 30,  2015		December 31, 2014
China	$	61,710,247	$	70,051,137
United States		-		-
	$	61,710,247	$	70,051,137

(a) Depreciation for equipment held for sale is not taken in the three and nine months ended September 30, 2015. The Company does not allocate the depreciation for equipment held for sale to any operating segment. In the three and nine months ended September 30, 2014, such depreciation is reflected as a reduction in rental income.

(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.