Segment reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

31. Segment reporting

 

The accounting policies of the product sectors are the same as those described in the summary of significant accounting policies except that the disaggregated financial results for the product sectors have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting them in making internal operating decisions. Generally, the Company evaluates performance based on stand-alone product sector operating income and accounts for inter segment sales and transfers as if the sales or transfers were to third parties, at current market prices.

As of September 30, 2015, the Company had 13 product sectors, five of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Shenyang, Wuhu and Hubei Henglong), and one holding company (Genesis). The other eight sectors were engaged in the production and sale of sensor modular (USAI), automobile steering columns (Jielong), provision of after sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), trade (Brazil Henglong), commercial vehicle repacking and sales (Fujian Qiaolong), manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie), and design and sales of automobile electronics (Shanghai Henglong). Since the revenues, net income and net assets of these eight sectors collectively are less than 10% of consolidated revenues, net income and net assets, respectively, in the condensed unaudited consolidated financial statements, the Company incorporated these eight sectors into “Other Sectors.”

As of September 30, 2014, the Company had 10 product sectors, five of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Shenyang, Wuhu and Hubei Henglong), and one holding company (Genesis). The other five sectors were engaged in the production and sale of sensor modular (USAI), automobile steering columns (Jielong), provision of after sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong) and trade (Brazil Henglong). Since the revenues, net income and net assets of these five sectors collectively are less than 10% of consolidated revenues, net income and net assets, respectively, in the condensed unaudited consolidated financial statements, the Company incorporated these five sectors into “Other Sectors.”

 

The Company’s product sector information for the three months and nine months ended September 30, 2015 and 2014, is as follows (figures are in thousands of USD):

	Net Product Sales				Net Income (Loss)
	Three Months Ended				Three Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Henglong	$	53,932	$	60,902	$	2,866	$	5,127
Jiulong		16,183		15,964		154		168
Shenyang		7,516		8,988		609		998
Wuhu		3,925		5,941		(110)		(88)
Hubei Henglong		13,818		14,425		1,737		1,110
Other Sectors		8,656		9,887		(260)		252
Total Segments		104,030		116,107		4,996		7,567
Corporate		-		-		(996)		231
Eliminations		(13,185)		(14,372)		381		228
Total	$	90,845	$	101,735	$	4,381	$	8,026

	Net Product Sales				Net Income (Loss)
	Nine Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Henglong	$	206,061	$	203,987	$	15,768	$	22,660
Jiulong		53,251		57,753		75		1,750
Shenyang		24,056		32,928		1,418		1,760
Wuhu		16,096		18,345		(181)		(167)
Hubei Henglong		44,463		41,708		5,594		44,512	(1)
Other Sectors		27,433		30,210		(1,021)		1,246
Total Segments		371,360		384,931		21,653		71,761
Corporate		-		-		(1,538)		(1,792)
Eliminations		(47,905)		(53,414)		285		(40,046)
Total	$	323,455	$	331,517	$	20,400	$	29,923

(1) $ 40.3 million included in the balance of $ 44.5 million was income from the investment in Henglong in 2014, which has been eliminated at the consolidation level.