Segment Information

3 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting Disclosure [Text Block]

NOTE 8. SEGMENT INFORMATION

The Company identified two operating segments for the three and six months ended June 30, 2011: landfill operation and plastic bottle sorting and recycling. The landfill operating segment provides non-hazardous municipal solid waste processing and disposal services. The plastic bottle recycling segment sorts the waste plastic bottles from the landfill the Company is operating, outsources the processing function to Dongxin and HBC and sells the processed PET bottles and plastic granules on consignment basis through Dongxin and HBC.  

All of the Company’s revenue is from customers in the PRC.

The measurement of segment income is determined as earnings before income taxes. Segment incomes are reported to the Company’s chief operating decision maker (“CODM”) using the same accounting policies as those used in the preparation of these condensed consolidated financial statements. Items that are not allocated to the Company’s operating segments are comprised primarily of selling, general and administrative expenses, interest income and expenses, other income and expenses and income taxes.

The segment information for the reportable segments for the three and six months ended June 30, 2011 and 2010 and the reconciliation of reportable segment net sales and net income to the consolidated total are as follows:

	For the Three Months Ended June 30,
	Landfill			PET		Consolidated
	Disposal Fees			Bottle Fees		Total
2011
Revenue		$	1,264,354		760,365	$	2,024,719
Cost of revenue			517,723		121,684		639,407
Gross profit			746,631		638,681		1,385,312
Income from operations							1,207,500
Other income							58,896
Income before income taxes							1,266,396
Provision for income taxes							164,424
Net income						$	1,101,972
2010
Revenue		$	1,186,829		4,056,923	$	5,243,752
Cost of revenue			368,307		2,184,236		2,552,543
Gross profit			818,522		1,872,687		2,691,209
Income from operations							2,542,201
Other income							330
Income before income taxes							2,542,531
Provision for income taxes							329,911
Net income						$	2,212,620

	For the Six Months Ended June 30,
	Landfill			PET		Consolidated
	Disposal Fees			Bottle Fees		Total
2011
Revenue		$	2,497,369		4,064,974	$	6,562,343
Cost of revenue			842,098		2,895,963		3,738,061
Gross profit			1,655,271		1,169,011		2,824,282
Income from operations							2,428,374
Other income							132,320
Income before income taxes							2,560,694
Provision for income taxes							332,426
Net income						$	2,228,268
2010
Revenue		$	2,309,528		4,521,978	$	6,831,506
Cost of revenue			725,037		2,279,850		3,004,887
Gross profit			1,584,491		2,242,128		3,826,619
Income from operations							3,531,694
Other income							23,435
Income before income taxes							3,555,129
Provision for income taxes							469,184
Net income						$	3,085,945