SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE—12 SEGMENT INFORMATION 

· Segment reporting

The Company’s business units have been aggregated into two reportable segments, as defined by ASC Topic 280:

· Heavy manufacturing business – production of valves components and the provision of valve improvement and engineering services; and

· Energy-saving related business – production of wind-energy equipment, provision of energy-saving related re-engineering and technical services and long-term construction project.

The Company operates these business segments in the PRC and all of the identifiable assets of the Company are located in the PRC during the periods presented.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 3). The Company had no inter-segment sales for the three and six months ended June 30, 2014 and 2013. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Summarized financial information concerning the Company’s reportable segments is shown in the following table for the three and six months ended June 30, 2014 and 2013:

	Three months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	1,553,641	$	-	$	1,553,641
- Services		43,832		-		43,832
Total operating revenues		1,597,473		-		1,597,473
Cost of revenues		1,492,399		-		1,492,399
Gross profit		105,074		-		105,074
Depreciation and amortization		208,252		-		208,252
Total assets		43,579,166		-		43,579,166
Expenditure for long-lived assets	$	104,669	$	-	$	104,669

	Six months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	3,168,752	$	-	$	3,168,752
- Services		177,647		-		177,647
Total operating revenues		3,346,399		-		3,346,399
Cost of revenues		2,835,564		-		2,835,564
Gross profit		510,835		-		510,835
Depreciation and amortization		417,921		-		417,921
Total assets		43,579,166		-		43,579,166
Expenditure for long-lived assets	$	105,842	$	-	$	105,842

	Three months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	1,420,387	$	-	$	1,420,387
- Services		55,029		-		55,029
Total operating revenues		1,475,416		-		1,475,416
Cost of revenues		1,044,491		-		1,044,491
Gross profit		430,925		-		430,925
Depreciation and amortization		211,743		-		211,743
Total assets		44,936,853		-		44,936,853
Expenditure for long-lived assets	$	723,100	$	-	$	723,100

	Six months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	2,302,350	$	-	$	2,302,350
- Services		471,679		-		471,679
Total operating revenues		2,774,029		-		2,774,029
Cost of revenues		1,932,129		-		1,932,129
Gross profit		841,900		-		841,900
Depreciation and amortization		413,720		-		413,720
Total assets		44,936,853		-		44,936,853
Expenditure for long-lived assets	$	942,060	$	-	$	942,060

	Three months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	1,553,641	$	-	$	1,553,641
- Services		43,832		-		43,832
Total operating revenues		1,597,473		-		1,597,473
Cost of revenues		1,492,399		-		1,492,399
Gross profit		105,074		-		105,074
Depreciation and amortization		208,252		-		208,252
Total assets		43,579,166		-		43,579,166
Expenditure for long-lived assets	$	104,669	$	-	$	104,669

	Six months ended June 30, 2014
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	3,168,752	$	-	$	3,168,752
- Services		177,647		-		177,647
Total operating revenues		3,346,399		-		3,346,399
Cost of revenues		2,835,564		-		2,835,564
Gross profit		510,835		-		510,835
Depreciation and amortization		417,921		-		417,921
Total assets		43,579,166		-		43,579,166
Expenditure for long-lived assets	$	105,842	$	-	$	105,842

	Three months ended June 30, 2013
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	1,420,387	$	-	$	1,420,387
- Services		55,029		-		55,029
Total operating revenues		1,475,416		-		1,475,416
Cost of revenues		1,044,491		-		1,044,491
Gross profit		430,925		-		430,925
Depreciation and amortization		211,743		-		211,743
Total assets		44,936,853		-		44,936,853
Expenditure for long-lived assets	$	723,100	$	-	$	723,100

	Six months ended June 30, 2013
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	2,302,350	$	-	$	2,302,350
- Services		471,679		-		471,679
Total operating revenues		2,774,029		-		2,774,029
Cost of revenues		1,932,129		-		1,932,129
Gross profit		841,900		-		841,900
Depreciation and amortization		413,720		-		413,720
Total assets		44,936,853		-		44,936,853
Expenditure for long-lived assets	$	942,060	$	-	$	942,060

All long-lived assets are located in the PRC.