Segment reporting | 21. Segment reporting The Group's long-lived assets and revenue are mainly located in and derived from the PRC. Starting in 2012, a small portion of the Group's long-lived assets and revenue are located in and derived from the United States. The Group considers that each of its individual property developments is a discrete operating segment. The Group has aggregated its segments on a provincial basis as property development projects undertaken within a province have similar expected economic characteristics, type of properties offered, customers and market and regulatory environment. The Group's reportable operating segments are comprised of Henan Province, Shandong Province, Jiangsu Province, Sichuan Province, Beijing, Hainan Province, Hunan Province, Shanghai, and Tianjin in the PRC; and the United States. Each geographic operating segment is principally engaged in the construction and development of residential real estate units. The other category relates to investment holdings, property management services, installation of intercom systems, landscaping, engineering and management, real estate sale, purchase and lease activities. The accounting policies of the various segments are the same as those described in Note 2, Summary of Significant Accounting Policies. The Group's chief operating decision maker relies upon net sales, gross profit and net income when making decisions about allocating resources and assessing performance of the Group. Net sales for geographic segments are generally based on the location of the project development. Net income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Capital expenditures for each segment includes cost for acquisition of subsidiaries, purchase of aircraft, vehicles, fixtures and furniture and computer network equipment and accumulation of properties held for lease related to newly completed projects. No single customer accounted for more than 10% of net sales for the years ended December 31, 2013, 2014 and 2015. Summary information by operating segment is as follows: December 31, 2013 Henan Shandong Jiangsu Anhui Sichuan Beijing United States Others Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ Net real estate sales 378,087,120 290,511,011 186,224,891 - 13,489,121 - 6,614,490 - 874,926,633 Real estate lease income 2,098,415 196,596 576,457 - - - - 3,118,298 5,989,766 Other revenue 242,368 84,040 479,202 - 183,026 - 15,520 15,817,501 16,821,657 Total revenue 380,427,903 290,791,647 187,280,550 - 13,672,147 - 6,630,010 18,935,799 897,738,056 Cost of real estate sales (225,443,661 ) (220,570,567 ) (135,087,692 ) - (3,107,736 ) - (6,002,345 ) (723,634 ) (590,935,635 ) Cost of real estate lease income (1,602,225 ) (129,059 ) (323,012 ) - - - - 458,065 (1,596,231 ) Other costs 3,553,561 (512 ) 3,359,189 - (56,418 ) - (550 ) (13,063,594 ) (6,208,324 ) Total cost of revenue (223,492,325 ) (220,700,138 ) (132,051,515 ) - (3,164,154 ) - (6,002,895 ) (13,329,163 ) (598,740,190 ) Gross profit 156,935,578 70,091,509 55,229,035 - 10,507,993 - 627,115 5,606,636 298,997,866 Operating expenses (39,956,831 ) (6,925,944 ) (11,766,051 ) (12,908 ) (936,011 ) (6,670,853 ) (1,359,841 ) (17,594,048 ) (85,222,487 ) Operating income/(loss) 116,978,747 63,165,565 43,462,984 (12,908 ) 9,571,982 (6,670,853 ) (732,726 ) (11,987,412 ) 213,775,379 Interest income 9,121,573 749,616 216,008 129 11,819 736,400 3,098 842,844 11,681,487 Interest expense (778,032 ) - - - - - - (16,084,500 ) (16,862,532 ) Share of loss in an equity investee (117,188 ) - - - - - - - (117,188 ) Other operating income/expense - - - - - 1,538,968 - - 1,538,968 Income/(loss) before income taxes 125,205,100 63,915,181 43,678,992 (12,779 ) 9,583,801 (4,395,485 ) (729,628 ) (27,229,068 ) 210,016,114 Income tax (expense)/benefit (46,673,642 ) (13,936,301 ) (16,640,499 ) (40,107 ) (2,749,642 ) 1,212,316 (44,335 ) (4,787,640 ) (83,659,850 ) Net income/(loss) 78,531,458 49,978,880 27,038,493 (52,886 ) 6,834,159 (3,183,169 ) (773,963 ) (32,016,708 ) 126,356,264 Depreciation and amortization 1,903,564 147,053 548,699 52,166 3,652 311,673 174 170,141 3,137,122 Capital expenditure 6,672,173 184,084 91,784,366 - - 936,906 116,597 405,009 100,099,135 Equity investment 5,967,905 - - - - - - - 5,967,905 Real estate properties held for sale - - - - - - 5,524,041 - 5,524,041 Real estate properties development completed 665,410 555,797 19,244,890 287,165 507,026 - - - 21,260,288 Real estate properties under development 190,143,709 37,201,975 441,295,792 - - 198,205,122 65,672,108 - 932,518,706 Real estate properties held for lease 48,011,607 3,602,956 7,712,857 846,903 - - - 235,858 60,410,181 Total long-lived assets 106,014,797 4,694,369 12,200,324 847,318 1,649,862 1,664,134 113,296 10,387,542 137,571,642 Total assets 928,034,862 314,799,152 482,414,252 9,494,401 88,642,444 184,288,291 6,530,771 367,895,419 2,382,099,592 December 31, 2014 Henan Shandong Jiangsu Sichuan Beijing Hainan Hunan Shanghai United States Others Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Net real estate sales 310,236,873 192,437,765 175,960,358 9,912,254 188,579,891 6,526,065 4,109,978 - 4,921,331 141,377 892,825,892 Real estate lease income 2,991,909 218,320 651 - - - - - - 1,725,306 4,936,186 Other revenue 110,500 110,166 57,357 29,585 11,717 391 244 - - 21,665,635 21,985,595 Total revenue 313,339,282 192,766,251 176,018,366 9,941,839 188,591,608 6,526,456 4,110,222 - 4,921,331 23,532,318 919,747,673 Cost of real estate sales (210,789,926 ) (146,862,778 ) (138,838,903 ) (9,125,435 ) (133,519,235 ) (4,137,467 ) (3,632,997 ) - (4,643,722 ) 977,293 (650,573,170 ) Cost of real estate lease income (2,574,534 ) 29,388 (575,529 ) - - - - - - (52,540 ) (3,173,215 ) Other costs (1,804,955 ) (1,303,518 ) (391,538 ) (16,975 ) (364,326 ) (17 ) (32,560 ) - - (19,921,843 ) (23,835,732 ) Total cost of revenue (215,169,415 ) (148,136,908 ) (139,805,970 ) (9,142,410 ) (133,883,561 ) (4,137,484 ) (3,665,557 ) - (4,643,722 ) (18,997,090 ) (677,582,117 ) Gross profit 98,169,867 44,629,343 36,212,396 799,429 54,708,047 2,388,972 444,665 - 277,609 4,535,228 242,165,556 Operating expenses (58,981,130 ) (8,891,116 ) (12,928,183 ) (3,229,614 ) (27,689,927 ) (3,855,809 ) (3,234,163 ) (2,353,439 ) (5,783,635 ) (18,169,045 ) (145,116,061 ) Operating income/(loss) 39,188,737 35,738,227 23,284,213 (2,430,185 ) 27,018,120 (1,466,837 ) (2,789,498 ) (2,353,439 ) (5,506,026 ) (13,633,817 ) 97,049,495 Interest income 10,797,806 903,353 471,254 8,312 375,674 4,974 16,913 9,647 - 1,989,389 14,577,322 Interest expense (471,635 ) - - - - - - - - (27,729,132 ) (28,200,767 ) Net realized gain on short-term 3,128,014 - - - - - - - - - 3,128,014 Share of income (loss) in an (1,691,897 ) - - - - - - - - - (1,691,897 ) Loss on extinguishment of debt - - - - - - - - - (9,848,931 ) (9,848,931 ) Exchange gains 706,108 - - - - - - - - 706,108 Unrealized income on short-term investments 120,146 - - - 1,887 - - - - - 122,033 Other income - 3,212,606 - - - - - - - - 3,212,606 Income/(loss) before income taxes 51,777,279 39,854,186 23,755,467 (2,421,873 ) 27,395,681 (1,461,863 ) (2,772,585 ) (2,343,792 ) (5,506,026 ) (49,222,491 ) 79,053,983 Income tax benefit/(expense) 1,897,892 (9,997,111 ) (3,452,056 ) 681,784 (18,646,689 ) (737,457 ) (543,422 ) (505,771 ) 2,243,056 (1,497,844 ) (30,557,618 ) Net income/(loss) 53,675,171 29,857,075 20,303,411 (1,740,089 ) 8,748,992 (2,199,320 ) (3,316,007 ) (2,849,563 ) (3,262,970 ) (50,720,335 ) 48,496,365 Depreciation and amortization 5,056,099 255,701 684,087 38,685 446,531 95,456 24,944 35,727 147,349 213,543 6,998,122 Capital expenditure 6,317,246 187,745 175,551 296,976 57,767 698,842 242,276 371,198 10,130,497 217,835 18,695,933 Real estate properties - - - - - - - - 1,185,217 - 1,185,217 Real estate properties 10,174,728 778,376 1,069,768 - - - - - - 286,127 12,308,999 Real estate properties under 122,442,706 230,512,631 476,026,887 213,243,863 124,555,677 80,188,420 145,738,966 192,275,659 119,947,878 9,642,365 1,714,575,052 Real estate properties held for 45,892,107 5,053,480 17,464,831 - - - - - - 813,330 69,223,748 Total long-lived assets 91,997,422 7,323,161 23,139,244 10,904,402 3,896,449 690,086 528,484 761,721 11,488,178 10,338,428 161,067,575 Total assets 868,110,770 501,351,668 642,378,579 125,561,644 427,431,672 52,944,306 99,029,288 197,356,138 36,990,997 280,371,172 3,231,526,234 December 31, 2015 Henan Shandong Jiangsu Sichuan Beijing Hainan Hunan Shanghai Tianjin United Others Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Net real estate sales 251,681,188 186,222,554 371,469,943 36,372,298 166,775,534 3,534,278 42,191,276 70,058,447 4,631,258 1,530,000 - 1,134,466,776 Real estate lease income 4,484,591 202,892 - - - - - - - 1,885,780 6,573,263 Other revenue 1,396,463 30,659 308,026 80,142 318,271 8,157 2,332 - 1,333 - 21,138,576 23,283,959 Total revenue 257,562,242 186,456,105 371,777,969 36,452,440 167,093,805 3,542,435 42,193,608 70,058,447 4,632,591 1,530,000 23,024,356 1,164,323,998 Cost of real estate sales (160,197,316 ) (149,867,847 ) (305,417,991 ) (32,313,894 ) (118,868,527 ) (2,337,677 ) (30,095,959 ) (62,366,015 ) (3,534,525) (1,243,112 ) - (866,242,863 ) Cost of real estate lease income (2,202,367 ) (285,974 ) (1,416,157 ) - - - - - - - (51,824 ) (3,956,322 ) Other costs 160,449 (376,070 ) (641,646 ) (3,615 ) (835,555 ) (324 ) - - (8,424 ) - (19,429,522 ) (21,134,707 ) Total cost of revenue (162,239,234 ) (150,529,891 ) (307,475,794 ) (32,317,509 ) (119,704,082 ) (2,338,001 ) (30,095,959 ) (62,366,015 ) (3,542,949 ) (1,243,112 ) (19,481,346 ) (891,333,892 ) Gross profit 95,323,008 35,926,214 64,302,175 4,134,931 47,389,723 1,204,434 12,097,649 7,692,432 1,089,642 286,888 3,543,010 272,990,106 Operating expenses (51,882,922 ) (13,528,548 ) (15,826,805 ) (3,672,935 ) (32,178,776 ) (6,617,557 ) (5,090,601 ) (4,346,174 ) (10,002,768 ) (4,971,109 ) (19,336,890 ) (167,455,085 ) Operating income/(loss) 43,440,086 22,397,666 48,475,370 461,996 15,210,947 (5,413,123 ) 7,007,048 3,346,258 (8,913,126 ) (4,684,221 ) (15,793,880 ) 105,535,021 Interest income 23,284,854 237,687 442,560 18,752 331,042 3,968 45,592 134,580 2,966 - 1,735 24,503,736 Interest expense 21,612,239 - - - - - - - - 17,587,083 (59,480,738 ) (20,281,416 ) Net realized gain on short-term investments - - - - - - - - - - 603,078 603,078 Share of income in an equity investee 2,234,635 - - - - - - - - - - 2,234,635 Loss on extinguishment of debt - - - - - - - - - - - - Exchange gains 403,286 - - - - - - - - - - 403,286 Unrealized income on short-term investments - - - - - - - - - - 49,443 49,443 Other income - - - - - 4,677,244 - - - 2,950 1,264,926 5,945,120 Income/(loss) before income taxes 90,975,100 22,635,353 48,917,930 480,748 15,541,989 (731,911 ) 7,052,640 3,480,838 (8,910,160 ) 12,905,812 (73,355,436 ) 118,992,903 Income tax benefit /(expense) (16,234,099 ) (9,901,175 ) (32,061 ) (1,344,687 ) (13,479,368 ) 163,491 (5,634,909 ) (1,259,900 ) 1,739,065 2,825,203 (9,352,878 ) (52,511,318 ) Net income/(loss) 74,741,001 12,734,178 48,885,869 (863,939 ) 2,062,621 (568,420 ) 1,417,731 2,220,938 (7,171,095 ) 15,731,015 (82,708,314 ) 66,481,585 Depreciation and amortization 5,569,343 400,733 1,542,209 64,082 515,150 208,486 76,304 83,175 3,839 50,985 237,358 8,751,664 Capital expenditure 4,249,718 172,853 31,524 - 33,952,563 127,550 146,074 - 52,401 136,065 256,824 39,125,572 Real estate properties development for sale - - - - - - - - - - - - Real estate properties development completed 4,775,131 - 19,301,428 - - - - - - - - 24,076,559 Real estate properties under development 313,105,983 275,709,393 307,172,930 223,653,822 62,561,492 101,059,710 157,166,855 155,309,860 57,207,564 226,208,448 8,165,744 1,887,321,801 Real estate properties held for lease 42,511,937 4,487,714 23,416,217 - - - - - - 716,714 71,132,582 Total long-lived assets 221,202,024 6,683,031 27,947,425 9,036,881 6,958,865 553,186 468,620 391,481 751,519 13,009,709 11,420,981 298,423,722 Total assets 1,064,084,941 457,041,948 655,880,819 206,485,216 346,527,256 135,047,439 110,988,357 128,502,762 19,201,186 166,888,356 270,739,159 3,561,387,439 |