Segment Information

3 Months Ended

Sep. 30, 2011

Segment Reporting

Segment Reporting Disclosure [Text Block]

NOTE 8. SEGMENT INFORMATION

The Company operates through two operating segments consisting of its 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 nine months ended September 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 September 30,
	Landfill		PET		Consolidated
	Disposal Fees		Bottle Fees		Total
2011
Revenue	$	1,343,009		830,798	$	2,173,807
Cost of revenue		464,482		216,643		681,125
Gross profit		878,527		614,155		1,492,681
Income from operations						1,390,567
Other income						65,549
Income before income taxes						1,456,116
Provision for income taxes						188,258
Net income					$	1,267,858
2010
Revenue	$	1,221,208		3,437,986	$	4,659,194
Cost of revenue		393,719		1,908,896		2,302,615
Gross profit		827,489		1,529,090		2,356,579
Income from operations						2,201,999
Other income						1,353
Income before income taxes						2,203,352
Provision for income taxes						284,325
Net income					$	1,919,027

	For the Nine Months Ended September 30,
	Landfill		PET		Consolidated
	Disposal Fees		Bottle Fees		Total
2011
Revenue	$	3,840,378		4,895,772	$	8,736,150
Cost of revenue		1,306,580		3,112,606		4,419,186
Gross profit		2,533,798		1,783,166		4,316,963
Income from operations						3,818,942
Other income						197,869
Income before income taxes						4,016,811
Provision for income taxes						520,684
Net income					$	3,496,127
2010
Revenue	$	3,530,736		7,959,964	$	11,490,700
Cost of revenue		1,133,679		4,173,824		5,307,503
Gross profit		2,397,057		3,786,140		6,183,197
Income from operations						5,733,693
Other income						24,787
Income before income taxes						5,758,480
Provision for income taxes						753,510
Net income					$	5,004,970