Segment Information

9 Months Ended

Sep. 30, 2016

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

For the three and nine months ended September 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 nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,						Three Months Ended September 30,
	2016			2015			2016			2015
Revenues
Dyeing and finishing equipment	$	3,945,608		$	8,355,273		$	12,390,190		$	23,49,579
Forged rolled rings and related components		31,984			1,420,348			437,433			11,692,962
Petroleum and chemical equipment		-			2,249,812			130,736			7,677,957
		3,977,592			12,025,433			12,958,359			42,862,498
Depreciation
Dyeing and finishing equipment		955,181			850,480			2,924,085			2,572,477
Forged rolled rings and related components		46,897			684,422			1,372,860			2,086,489
Petroleum and chemical equipment		105,133			487,483			162,027			1,507,933
		1,107,211			2,022,385			4,458,972			6,166,899
Interest expense
Dyeing and finishing equipment		31,676			35,561			96,630			107,474
Forged rolled rings and related components		12,140			12,735			36,505			27,740
Petroleum and chemical equipment		10,523			12,835			32,380			39,888
		54,339			61,131			165,515			175,102
Net income (loss)
Dyeing and finishing equipment		12,140			1,170,705			529,555			3,080,537
Forged rolled rings and related components		(113,287	)		(302,083	)		(1,494,138	)		286,505
Petroleum and chemical equipment		(160,175	)		114,609			(269,143	)		500,473
Other (a)		(107,385	)		(79,100	)		(650,085	)		(494,380	)
	$	(359,536	)	$	904,131		$	(1,883,811	)	$	3,373,135

Identifiable long-lived tangible assets at September 30, 2016 and December 31, 2015 by segment	September 30, 2016		December 31, 2015
Dyeing and finishing equipment	$	37,274,206	$	25,782,801
Forged rolled rings and related components		-		14,212,045
Petroleum and chemical equipment		-		11,759,118
Equipment held for sale		8,708,602		-
	$	45,982,808	$	51,753,964

Identifiable long-lived tangible assets at September 30, 2016 and December 31, 2015 by geographical location	September 30, 2016		December 31, 2015
China	$	45,982,808	$	51,753,964
United States		-		-
	$	45,982,808	$	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.