Segment information

6 Months Ended

Jun. 30, 2011

Segment information

22.  Segment information

The Company uses the “management approach” in determining reportable operating segments.  The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments.  Management, including the chief operating decision maker, reviews the operating results of retail sales (including Company-owned and co-owned stores) and sales to distributors and as such, the Company has determined that it has two operating segments as defined by ASC Topic 280 “Segment Reporting”.

	Retail sales						Sales to distributors				Total
	Six months ended						Six months ended				Six months ended
	June 30, (Unaudited)						June 30, (Unaudited)				June 30, (Unaudited)
	2011			2010			2011		2010		2011		2010
Revenues	$	2,285,406		$	1,464,866		$	2,052,950	$	2,604,899	$	4,338,356	$	4,069,765
Segment (loss) profit	$	(251,009	)	$	(491,067	)	$	451,592	$	926,054	$	200,583	$	434,987

	Retail sales						Sales to distributors				Total
	Three months ended						Three months ended				Three months ended
	June 30, (Unaudited)						June 30, (Unaudited)				June 30, (Unaudited)
	2011			2010			2011		2010		2011			2010
Revenues	$	1,138,091		$	685,536		$	885,794	$	1,489,015	$	2,023,885		$	2,174,551
Segment (loss) profit	$	(251,670	)	$	(270,519	)	$	155,596	$	521,714	$	(96,074	)	$	251,195

	As of		As of		As of		As of		As of		As of
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
	2011		2010		2011		2010		2011		2010
	(Unaudited)				(Unaudited)				(Unaudited)
Segment assets	$	7,410,242	$	4,651,091	$	6,656,523	$	7,493,125	$	14,066,765	$	12,144,216

A reconciliation is provided for unallocated amounts relating to corporate operations which is not included in the segment information:-

	Three months ended June 30, (Unaudited)						Six months ended June 30, (Unaudited)
	2011			2010			2011			2010
Total consolidated revenue	$	2,023,885		$	2,174,551		$	4,338,356		$	4,069,765
Total (loss) income for reportable segments	$	(96,074	)	$	251,195		$	200,583		$	434,987
Unallocated amounts relating to
operations :-
Other income		73,261			-			73,261			-
General and administrative expenses		(39,890	)		(19,246	)		(47,031	)		(81,212	)
Stock-based compensation		-			(19,663	)		-			(43,420	)
(Loss) income before income taxes	$	(62,703	)	$	212,286		$	226,813		$	310,355

	As of		As of
	June 30,		December 31,
	2011		2010
	(Unaudited)
Assets
Total assets for reportable segments	$	14,066,765	$	12,144,216
Cash and cash equivalents		33,318		15,775
	$	14,100,083	$	12,159,991

All of the Company’s long-lived assets and customers are located in the PRC.  Accordingly, no geographic information is presented.