Segment Information

12 Months Ended

Dec. 31, 2017

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 17 – SEGMENT INFORMATION

During the year ended December 31, 2016, 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 were strategic business units that offered different products. They were managed separately based on the fundamental differences in their operations. During 2016 and part of 2017, all of the Company’s operations were conducted in the PRC. Because of significant declines in revenues from the forged rolled rings and related components segment and petroleum and chemical equipment segment, the Company discontinued these segments and sold the forged rolled rings and related components segment in the fourth quarter of 2016. Pursuant to ASC Topic 205-20, Presentation of Financial Statements-Discontinued Operations, the business of forged rolled rings and related components segment, and petroleum and chemical equipment segment are considered as discontinued operations because: (a) the operations and cash flows of these segments were eliminated from the Company’s operations; and (b) the Company would not have ability to influence the operation or financial policies of the forged rolled rings and related components segment subsequent to the sale. The results of operation of the forged rolled rings and related components and the petroleum and chemical equipment segments have been presented as discontinued operations for the years ended December 31, 2017 and 2016. In 2017, the Company entered to new lines of business focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. This reporting segment is referred to as the Sharing Economy Segment and is managed separately based on its fundamental differences in its operations and is based in Hong Kong.

Information with respect to these reportable business segments for the years ended December 31, 2017 and 2016 was as follows:

	For the Years Ended December 31,
	2017			2016
Revenues:
Dyeing and finishing equipment	$	13,463,557		$	17,364,332
Sharing economy		58,499			-
		13,522,056			17,364,332
Depreciation:
Dyeing and finishing equipment		3,943,694			3,829,345
Sharing economy		7,238			-
		3,950,932			3,829,345
Interest expense
Dyeing and finishing equipment		134,459			124,937
Sharing economy		3,364			-
		137,823			124,937
Net loss
Dyeing and finishing equipment		(9,914,743	)		(286,106	)
Sharing economy		(1,211,499	)		-
Discontinued segments		(97,957	)		(10,285,932	)
Other (a)		(1,702,151	)		(1,107,116	)
	$	(12,926,350	)	$	(11,679,154	)

	December 31, 2017		December 31, 2016
Identifiable long-lived tangible assets at December 31, 2017 and 2016 by segment
Dyeing and finishing equipment	$	27,805,180	$	29,878,675
Sharing economy		65,144		-
Other (b)		5,310,795		-
	$	33,181,119	$	29,878,675
		December 31, 2017		December 31, 2016
Identifiable long-lived tangible assets at December 31, 2017 and 2016 by geographical location
China	$	33,115,975	$	29,878,675
Hong Kong		65,144		-
United States		-		-
	$	33,181,119	$	29,878,675

(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.

(b) Represents amount of net tangible assets not in use and to be used by for new segment being developed.