| Segment Information |
18. SEGMENT INFORMATION
The Companys business units have been aggregated into two reportable segments,
as defined by ASC Topic 280:
Mining management business project management of gold mining operations;
Mining technical service business provision of mining consulting and technical
services.
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 years presented.
The accounting policies of the segments are the same as those described in the summary
of significant accounting policies. The Company has no inter-segment sales for the years ended December 31, 2011 and 2010. The
Companys 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 Companys
reportable segments is shown in the following table for the years ended December 31, 2011 and 2010:
| |
Year ended December 31, 2011 |
| |
Mining management business |
|
Mining technical service business |
|
Total |
| Operating revenues, net: |
|
|
|
|
|
|
|
|
| - Products |
$ |
3,244,290 |
|
$ |
- |
|
$ |
3,244,290 |
| - Service |
|
- |
|
|
576,883 |
|
|
576,883 |
| Total operating revenues |
|
3,244,290 |
|
|
576,883 |
|
|
3,821,173 |
| Cost of revenues |
|
(4,731,501) |
|
|
(144,290) |
|
|
(4,875,791) |
| |
|
|
|
|
|
|
|
|
| Gross (loss) profit |
|
(1,487,211) |
|
|
432,593 |
|
|
(1,054,618) |
| Depreciation and amortization |
|
1,359,539 |
|
|
25,888 |
|
|
1,385,427 |
| Total assets |
|
15,367,116 |
|
|
- |
|
|
15,367,116 |
| Expenditure for long-lived assets |
$ |
10,835,495 |
|
$ |
- |
|
$ |
10,835,495 |
| |
Year ended December 31, 2010 |
| |
Mining management business |
|
Mining technical service business |
|
Total |
| Operating revenues, net: |
|
|
|
|
|
|
|
|
| - Products |
$ |
3,927,051 |
|
$ |
- |
|
$ |
3,927,051 |
| - Service |
|
- |
|
|
2,525,440 |
|
|
2,525,440 |
| Total operating revenues |
|
3,927,051 |
|
|
2,525,440 |
|
|
6,452,491 |
| Cost of revenues |
|
(1,547,462) |
|
|
(198,983) |
|
|
(1,746,445) |
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
2,379,589 |
|
|
2,326,457 |
|
|
4,706,046 |
| Depreciation |
|
41,264 |
|
|
5,186 |
|
|
46,450 |
| Total assets |
|
7,371,445 |
|
|
218,771 |
|
|
7,590,216 |
| Expenditure for long-lived assets |
$ |
1,297,089 |
|
$ |
77,458 |
|
$ |
1,374,547 |
All of the long-lived assets are located in the PRC.
|