Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 12 – SEGMENT INFORMATION

For the three and six months ended June 30, 2016 and 2015, the Company operated in three reportable business segments - (1) the manufacture of textile dyeing and finishing equipment segment, (2) the manufacture of forged rolled rings and related components segment, and (3) the manufacture of petroleum and chemical 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. Because of the significant decline in revenues from the forged rolled rings and related components and petroleum equipment segments, the Company is evaluating, on an ongoing basic, the continuation of these two segments. In the event that the Company discontinues either or both of these segments, the Company may suffer an impairment expense with respect to the assets dedicated to those segments. Information with respect to these reportable business segments for the three and six months ended June 30, 2016 and 2015 was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues
Dyeing and finishing equipment	$	3,917,882		$	8,612,954		$	8,444,582		$	15,136,306
Forged rolled rings and related components		143,394			2,999,002			405,449			10,272,614
Petroleum and chemical equipment		-			3,578,644			130,736			5,428,145
		4,061,276			15,190,600			8,980,767			30,837,065
Depreciation
Dyeing and finishing equipment		1,013,625			859,913			1,968,904			1,721,997
Forged rolled rings and related components		663,408			703,626			1,325,963			1,402,067
Petroleum and chemical equipment		-			506,468			56,894			1,020,450
		1,677,033			2,070,007			3,351,761			4,144,514
Interest expense
Dyeing and finishing equipment		32,344			36,255			64,954			71,913
Forged rolled rings and related components		12,123			6,901			24,365			15,005
Petroleum and chemical equipment		10,995			13,472			21,857			27,053
		55,462			56,628			111,176			113,971
Net income (loss)
Dyeing and finishing equipment		139,789			1,161,616			508,244			1,909,832
Forged rolled rings and related components		(682,773	)		(25,075	)		(1,380,851	)		588,588
Petroleum and chemical equipment		(66,532	)		159,435			(108,968	)		385,864
Other (a)		(70,666	)		(69,406	)		(542,700	)		(415,280	)
	$	(680,182	)	$	1,226,570		$	(1,524,275	)	$	2,469,004

Identifiable long-lived tangible assets at June 30, 2016 and December 31, 2015 by segment	June 30, 2016		December 31,  2015
Dyeing and finishing equipment	$	23,614,343	$	25,782,801
Forged rolled rings and related components		12,854,879		14,212,045
Petroleum and chemical equipment		10,807,079		11,759,118
	$	47,276,301	$	51,753,964

Identifiable long-lived tangible assets at June 30, 2016 and December 31, 2015 by geographical location	June 30, 2016		December 31,  2015
China	$	47,276,301	$	51,753,964
United States		-		-
	$	47,276,301	$	51,753,964

(a) 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.