Segment reporting | 20. Segment reporting The Group’s long-lived assets and revenue are mainly located in and derived from the PRC. Starting in 2012, a relatively smaller 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, Shaanxi Province, Shanghai, Tianjin, Xinjiang and Zhuhai 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, 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, 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, 2015, 2016 and 2017. December 31, 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 Real estate management services income - - - - - - - - - - 21,611,201 21,611,201 Other revenue 1,396,463 30,659 308,026 80,142 318,271 8,157 2,332 - 1,333 - (472,625) 1,672,758 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) Cost of real estate management services (18,161) - - - - - - - - - (19,424,698) (19,442,859) Other costs 178,610 (376,070) (641,646) (3,615) (835,555) (324) - - (8,424) - (4,824) (1,691,848) 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 gain 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 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 8,659,744 3,266,691 285,919,467 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 19,201,186 162,538,391 262,584,869 3,548,883,184 December 31, Henan Shandong Jiangsu Sichuan Beijing Hainan Hunan Shanghai Tianjin Shaanxi United Others Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Net real estate sales 368,866,778 169,605,220 349,616,790 76,489,749 23,722,289 12,699,957 105,494,573 100,003,503 39,912,406 126,550,015 152,007,123 - 1,524,968,403 Real estate lease income 3,588,434 172,198 - - - - - - - 284,294 - 1,901,125 5,946,051 Real estate management services income 1,161,150 - - - - - - - - - - 28,861,597 30,022,747 Other revenue 303,521 102,415 471 - 280,007 - - - 1,078 - - - 687,492 Total revenue 373,919,883 169,879,833 349,617,261 76,489,749 24,002,296 12,699,957 105,494,573 100,003,503 39,913,484 126,834,309 152,007,123 30,762,722 1,561,624,693 Cost of real estate sales (252,522,117) (142,763,272) (273,738,274) (58,762,806) (30,743,520) (8,544,624) (75,514,694) (89,067,765) (22,837,517) (91,274,052) (128,803,285) - (1,174,571,926) Cost of real estate lease income (1,792,349) (287,832) (1,328,100) - - - - - - (225,776) - (48,588) (3,682,645) Cost of real estate management services (979,218) - - - - - - - - - - (23,302,224) (24,281,442) Other costs (525,052) (100,695) (69,971) - (404,649) - - - - - - - (1,100,367) Total cost of revenue (255,818,736) (143,151,799) (275,136,345) (58,762,806) (31,148,169) (8,544,624) (75,514,694) (89,067,765) (22,837,517) (91,499,828) (128,803,285) (23,350,812) (1,203,636,380) Gross profit 118,101,147 26,728,034 74,480,916 17,726,943 (7,145,873) 4,155,333 29,979,879 10,935,738 17,075,967 35,334,481 23,203,838 7,411,910 357,988,313 Operating expenses (41,459,159) (8,682,365) (12,234,106) (3,329,524) (38,841,455) (4,028,044) (6,372,468) (3,120,707) (16,533,371) (10,239,653) (11,002,123) (22,786,372) (178,629,347) Operating income/(loss) 76,641,988 18,045,669 62,246,810 14,397,419 (45,987,328) 127,289 23,607,411 7,815,031 542,596 25,094,828 12,201,715 (15,374,462) 179,358,966 Interest income 18,611,346 974,322 262,675 71,673 246,892 18,809 91,757 83,756 123,642 92,040 - 339,655 20,916,567 Interest expense (6,312,134) - - - - - - - - - (3,444,399) (20,100,299) (29,856,832) Net realized gain on short-term investments 1,316,577 - - - (1,742) - - - - - - 1,190,861 2,505,696 Share of (loss)/gain in an equity investee (688,363) - - - - - - - - - - 363,751 (324,612) Loss on extinguishment of debt - - - - - - - - - - - (12,123,750) (12,123,750) Exchange gains 461,627 - - - (130,591) - - - - - - 127,923 458,959 Unrealized income on short-term investments 7,862 - - - - - - - - - 227,472 235,334 Other income 4,534,357 - - - - - - - - 2,487 3,383 4,540,227 Income/(loss) before income taxes 94,573,260 19,019,991 62,509,485 14,469,092 (45,872,769) 146,098 23,699,168 7,898,787 666,238 25,186,868 8,759,803 (45,345,466) 165,710,555 Income tax expense (13,089,933) (11,666,859) (28,647,951) (5,223,645) 15,322,784 (556,388) (13,925,672) (3,089,750) (3,217,994) (12,955,165) (8,388,686) (808,616) (86,247,875) Net income/(loss) 81,483,327 7,353,132 33,861,534 9,245,447 (30,549,985) (410,290) 9,773,496 4,809,037 (2,551,756) 12,231,703 371,117 (46,154,082) 79,462,680 Depreciation and amortization 5,477,178 411,694 1,442,768 61,572 454,728 208,161 82,330 77,851 8,278 106,653 106,407 250,763 8,688,383 Capital expenditure 5,257,710 57,511 19,302 11,035 744,844 28,005 13,599 1,029 8,593 25,770 294,134 6,461,532 Real estate properties development completed 39,369,770 2,309,387 94,008,195 - 52,671,437 - - 91,307,299 - - 197,513,164 - 477,179,252 Real estate properties under development 376,001,881 236,984,737 104,989,367 202,565,917 149,726,569 137,338,481 188,578,773 - 13,222,946 166,266,501 133,498,536 9,961,456 1,719,135,164 Real estate properties held for lease 38,584,030 5,604,196 20,648,238 - - - - - - 94,413,043 - 624,427 159,873,934 Total long-lived assets 98,501,017 9,339,448 22,056,718 354,311 2,037,512 408,197 241,841 127,856 2,189,185 125,018,000 6,004,446 21,835,309 288,113,840 Total assets 1,371,127,748 370,315,900 354,089,481 222,100,489 283,695,245 207,361,083 276,147,610 109,047,209 97,995,395 356,256,758 409,269,847 162,152,194 4,219,558,959 December 31, 2017 Henan Shandong Jiangsu Sichuan Beijing Hainan Hunan Shanghai Tianjin Shaanxi United Xinjiang Zhuhai Others Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Net real estate sales 886,207,602 252,186,589 284,388,321 79,054,170 540,766 87,304,257 133,499,073 973,450 38,646,991 63,283,292 98,476,295 - - - 1,924,560,806 Real estate lease income 3,567,372 183,530 - - - - 6,071 209,186 - 3,832,764 - - 19,659 914,217 8,732,799 Real estate management services income 1,505,932 - - - - - - - - 356,429 - - - 39,875,958 41,738,319 Other revenue 508,891 52,893 21,184 87,307 - 11,396 118,391 5,046 74 - 307,793 761,502 - 830 1,875,307 Total revenue 891,789,797 252,423,012 284,409,505 79,141,477 540,766 87,315,653 133,623,535 1,187,682 38,647,065 67,472,485 98,784,088 761,502 19,659 40,791,005 1,976,907,231 Cost of real estate sales (607,656,121) (204,691,234) (247,765,242) (71,332,282) (363,305) (55,291,475) (107,834,718) (664,093) (23,602,129) (46,516,108) (108,350,506) - - - (1,474,067,213) Cost of real estate lease income (2,170,672) (348,420) (3,353,579) (158,879) - - (174,601) (332,094) - (4,420,100) - - - (47,777) (11,006,122) Cost of real estate management services (935,942) - - - - - - - - - - - - (30,710,506) (31,646,448) Other costs (227,081) (10,706) (127,375) - (51,424) (3,846) (95,235) - - - - - (10,342) (33,226) (559,235) Total cost of revenue (610,989,816) (205,050,360) (251,246,196) (71,491,161) (414,729) (55,295,321) (108,104,554) (996,187) (23,602,129) (50,936,208) (108,350,506) - (10,342) (30,791,509) (1,517,279,018) Gross profit 280,799,981 47,372,652 33,163,309 7,650,316 126,037 32,020,332 25,518,981 191,495 15,044,936 16,536,277 (9,566,418) 761,502 9,317 9,999,496 459,628,213 Operating expenses (64,061,347) (10,497,498) (16,659,076) (3,772,416) (44,507,378) (7,726,269) (10,099,854) (747,409) (6,001,987) (9,123,653) (10,597,926) (8,546,613) (680,754) (19,546,278) (212,568,458) Operating income/(loss) 216,738,634 36,875,154 16,504,233 3,877,900 (44,381,341) 24,294,063 15,419,127 (555,914) 9,042,949 7,412,624 (20,164,344) (7,785,111) (671,437) (9,546,782) 247,059,755 Interest income 11,355,876 338,069 218,937 100,988 516,950 26,443 320,666 268,325 271,527 69,336 - 366 264 3,371,339 16,859,086 Interest expense (18,393,523) (362,759) (1,829,665) - (5,056,962) - - (2,100,301) (1,214,368) - (3,570,310) - - (33,625,552) (66,153,440) Net realized gain on short-term investments 3,110,564 - 7,395 - 9,077 - - - - - - - - 4,746,951 7,873,987 Share of (loss)/gain in an equity investee (1,062,499) (974,405) (2,818) - - - - - - - - - - 329,652 (1,710,070) Loss on extinguishment of debt - - - - - - - - - - - - - (15,879,702) (15,879,702) Exchange gains (362,736) - - - - - - - - - - - - 1,119,662 756,926 Unrealized income on short-term investments 151,003 - - - - - - - - - - - - 1,944,976 2,095,979 Other income 2,326,004 - - - - - - - - 6 - - - 2,326,010 - Income/(loss) before income taxes 213,863,323 35,876,059 14,898,082 3,978,888 (48,912,276) 24,320,506 15,739,793 (2,387,890) 8,100,108 7,481,960 (23,734,648) (7,784,745) (671,173) (47,539,456) 193,228,531 Income tax benefit/(expense) (77,985,230) (11,359,619) (6,913,466) (812,628) 4,065,308 (10,189,683) (2,560,610) 686,619 (1,713,343) (840,827) 8,694,642 58,406 145,513 (14,392,208) (113,117,126) Net income/(loss) 135,878,093 24,516,440 7,984,616 3,166,260 (44,846,968) 14,130,823 13,179,183 (1,701,271) 6,386,765 6,641,133 (15,040,006) (7,726,339) (525,660) (61,931,664) 80,111,405 Depreciation and amortization 5,597,930 416,607 3,445,463 218,043 767,841 148,453 185,123 68,648 9,836 1,766,074 232,618 - 38 870,852 13,727,526 Capital expenditure 5,756,237 11,636 13,725 22,550 2,960,195 1,361 21,262 - 20,322 9,571 257,643 - 392,779 294,575 9,761,856 Real estate properties development completed 49,708,034 82,128,992 13,625,012 146,791,480 52,675,024 97,350,745 49,346,740 90,003,702 - 127,107,105 131,656,359 - - - 840,393,193 Real estate properties under development 937,340,899 78,988,478 217,051,399 - 200,296,958 - 109,107,637 - 40,379,791 140,257,927 168,236,598 - 93,205,573 11,135,393 1,996,000,653 Real estate properties held for lease 53,783,548 5,633,936 38,824,172 23,503,438 - - 50,422,065 4,578,302 - 100,574,370 - - - 613,482 277,933,313 Total long-lived assets 207,599,517 420,656,893 50,598,511 391,437,638 16,714,738 609,466 51,791,292 4,639,263 1,706,170 125,298,084 19,666,135 271,179 125,896 23,107,007 1,314,221,789 Total assets 2,715,305,431 693,368,606 459,080,321 584,350,518 296,118,475 108,984,575 266,196,168 103,055,884 98,249,020 440,219,180 354,473,170 2,124,744 93,723,704 169,184,474 6,384,434,270 |