Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 13 – SEGMENT INFORMATION

For the year ended December 31, 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 year ended December 31, 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 years ended December 31, 2015 and 2014 was as follows:

Revenues	2015			2014
Dyeing and finishing equipment	$	29,010,950		$	42,209,342
Forged rolled rings and related components		12,080,893			33,749,334
Petroleum and chemical equipment		8,473,733			-
		49,565,576			75,958,676
Depreciation
Dyeing and finishing equipment		3,397,397			3,119,823
Forged rolled rings and related components		2,755,726			4,846,273
Petroleum and chemical equipment		1,975,682			-
Other (a)		-			503,675
		8,128,805			8,469,771
Interest expense
Dyeing and finishing equipment		144,056			147,525
Forged rolled rings and related components		40,363			90,701
Petroleum and chemical equipment		50,947			-
		235,366			238,226
Net income (loss)
Dyeing and finishing equipment		3,652,124			5,494,791
Forged rolled rings and related components		(6,136,431	)		(482,221	)
Petroleum and chemical equipment		(9,638,721	)		-
Other (b)		(647,194	)		(746,153	)
	$	(12,770,222	)	$	4,266,417

Identifiable long-lived tangible assets at December 31, 2015 and 2014 by segment	December 31, 2015		December 31, 2014
Dyeing and finishing equipment	$	25,782,801	$	30,691,226
Forged rolled rings and related components (c)		14,212,045		38,937,371
Petroleum and chemical equipment (c)		11,759,118		-
Equipment held for sale		-		422,540
	$	51,753,964	$	70,051,137

Identifiable long-lived tangible assets at December 31, 2015 and 2014 by geographical location	December 31, 2015		December 31, 2014
China	$	51,753,964	$	70,051,137
United States		-		-
	$	51,753,964	$	70,051,137

(a)	Depreciation for equipment held for sale is not taken in 2015. The equipment was held for rental in 2014. The Company does not allocate the depreciation for equipment held for rental to any operating segment. Such depreciation is reflected as a reduction in rental income.
(b)	The Company does not allocate any general and administrative expense 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.