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BUSINESS SEGMENT REPORTING
12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE 18 - BUSINESS SEGMENT REPORTING

 

Our operating businesses are organized based on the nature of markets and customers. Segment accounting policies are the same as described in Note 2 - Summary of Significant Accounting Policies.

 

Effects of transactions between related companies are eliminated and consist primarily of inter-company transactions and transfers of cash or cash equivalents from corporate to support each business segment’s payroll, inventory sourcing and overall operations when each segment has working capital requirements.

 

A description of our operating segments as of December 31, 2012 and 2011, can be found below.

 

E-COMMERCE PLATFORM (ARKI BEIJING, AMERICA PINE BEIJING, ARKI FUXIN, ARKI NETWORK SERVICE)

 

The website provides an online marketing and retail platform for a wide variety of manufacturers and distributors to promote and sell their products and services directly to consumers in the PRC. The website also provides access to certain Western products that are generally unavailable in the PRC such as handbags and eyewear made by U.S. companies and food and beverage products from Spain, Germany, and France.

 

FOOD PRODUCT DISTRIBUTION (BEITUN)

 

Beitun is principally engaged in the wholesale distribution and import/export of various food and meat products to businesses located throughout the PRC. All products are sold in the PRC and are considered finished goods.

 

   For The Years Ended December 31, 2012
   E-Commerce  Food Distribution  Consolidated
Net revenues  $1,153,389   $5,670,491   $6,823,880 
Cost of sales   —     $5,595,790   $5,595,790 
                
Gross profit  $1,153,389   $74,701   $1,228,090 
                
Operating expenses:               
Selling expenses  $937,079   $48,436   $985,515 
General and administrative  $1,556,555   $19,318   $1,575,873 
Total operating expenses  $2,493,634   $67,754   $2,561,388 
                
Operating loss  $(1,340,245)  $6,947   $(1,333,298)
Other income  $51,933    —     $51,933 
                
Loss before taxes  $(1,288,312)  $6,947   $(1,281,365)
Provision for income taxes   —     $1,765   $1,765 
Net loss  $(1,288,312)  $5,182   $(1,283,130)
Net loss attributable to non controlling interest   —     $2,540   $2,540 
Net loss attributable to Consumer Capital Group, Inc.  $(1,288,312)  $2,642   $(1,285,670)
Net loss  $(1,288,312)  $5,182   $(1,283,130)
Other comprehensive loss, net of tax               
Foreign currency translation adjustment  $(7,559)   —     $(7,559)
Comprehensive loss, net of tax  $(1,295,871)  $5,182   $(1,290,689)
Less: Comprehensive income attributable to non-controlling interest  $2,816    —     $2,816 
Comprehensive loss attributable to Consumer Capital Group, Inc.  $(1,298,687)  $5,182   $(1,293,505)

   For the year ended December 31, 2011
   E-Commerce  Food Distribution  Consolidated
Net revenues  $2,155,027   $5,628,692   $7,783,719 
Cost of sales   —     $5,564,088   $5,564,088 
                
Gross profit  $2,155,027   $64,604   $2,219,631 
                
Operating expenses:               
Selling expenses  $1,845,979   $48,954   $1,894,933 
General and administrative  $2,530,872   $7,727   $2,538,599 
Total operating expenses  $4,376,851   $56,681   $4,433,532 
                
Operating loss  $(2,221,824)  $7,923   $(2,213,901)
Other income  $112,699    —     $112,699 
                
Loss before taxes  $(2,109,125)  $7,923   $(2,101,202)
Provision for income taxes   —     $2,054   $2,054 
Net loss  $(2,109,125)  $5,869   $(2,103,256)
Net loss attributable to non controlling interest   —     $3,201   $3,201 
Net loss attributable to Consumer Capital Group, Inc.  $(2,109,125)  $2,668   $(2,106,457)
Net loss  $(2,109,125)  $5,869   $(2,103,256)
Other comprehensive loss, net of tax               
Foreign currency translation adjustment  $1,821   $305   $2,126 
Comprehensive loss, net of tax  $(2,107,304)  $6,174   $(2,101,130)
Less: Comprehensive income attributable to non-controlling interest  $3,201    —     $3,201 
Comprehensive loss attributable to Consumer Capital Group, Inc.  $(2,110,505)  $6,174   $(2,104,331)

 

      As of December 31, 2012
      E-Commerce     Food Distribution     Consolidated
Cash       $53,964        $120,283        $174,247 
Accounts receivable        —           793,490         793,490 
Inventories        —           679,403         679,403 
Advance to suppliers        —           445,798         445,798 
Prepaid expenses        132,238         44,025         176,263 
Other receivables        —           11,235         11,235 
    Total current assets        186,202         2,094,234         2,280,436 
                               
Property and equipment, net        48,562         4,872         53,434 
Other assets        96,071         —           96,071 
    Total noncurrent assets        144,633         4,872         149,505 
                               
Total assets       $330,835        $2,099,106        $2,429,941 

 

      As of December 31, 2011
      E-Commerce     Food Distribution     Consolidated
Cash       $560,086        $59,726        $619,812 
Restricted Cash        827,000         —           827,000 
Accounts receivable        —           214,744         214,744 
Inventories        —           1,167,447         1,167,447 
Prepaid expenses        200,957         135,187         336,144 
Prepaid stock compensation        486,533         —           486,533 
Other receivables        30,037         —           30,037 
    Total current assets        2,104,613         1,577,104         3,681,717 
                               
Property and equipment, net        92,705         8,273         100,978 
Other assets        93,862         —           93,862 
    Total noncurrent assets        186,567         8,273         194,840 
                               
Total assets       $2,291,180        $1,585,377        $3,876,557 

 

         For the year ended December 31, 2012
         E-Commerce         Food Distribution         Consolidated 
Capital Expenditure       $—          $—          $—   

 

      For the year ended December 31, 2011
      E-Commerce     Food Distribution     Consolidated
Capital Expenditure       $107,843        $—          $107,843