SEGMENT REPORTING

6 Months Ended

Jun. 30, 2011

9.	SEGMENT REPORTING

In accordance with ASC Topic 280, Segment Reporting (“ASC 280”) and based on the nature of revenue, the Company is organized into two business segments, consisting of (i) Fertilizer, and (ii) Chemical, which includes mainly snow melting agent, thiophene, flame retardant, calcium chloride and magnesium chloride.

The following table summarizes financial information for each of the business segments for the six months ended June 30, 2011 and 2010.

	Six months ended June 30, 2011 (unaudited)												Six months ended June 30, 2010 (unaudited)
	Fertilizer			Chemical			All other			Consolidated			Fertilizer			Chemical			All other			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000

Operating revenue		47,375			9,590			-			56,965			38,308			5,374			-			43,682
Cost of sales		(40,114	)		(7,425	)		-			(47,539	)		(32,498	)		(4,160	)		-			(36,658	)
Depreciation of property, plant and equipment		(60	)		(140	)		-			(200	)		(59	)		(77	)		-			(136	)
Amortization of intangible assets		-			-			-			-			(1	)		-			-			(1	)
Amortization of prepaid lease expenses		(24	)		(8	)		-			(32	)		(11	)		(7	)		-			(18	)
Interest income		30			2			-			32			2			-			-			2
Interest expense		(246	)		(144	)		(24	)		(414	)		(111	)		(54	)		(73	)		(238	)
Other segment income		9			11			-			20			8			13			-			21
Other segment expenses		(1,835	)		(621	)		(449	)		(2,905	)		(1,615	)		(550	)		(612	)		(2,777	)
Other finance cost		-			-			(142	)		(142	)		-			-			(444	)		(444	)
Income taxes		(1,088	)		(212	)		-			(1,300	)		(830	)		(97	)		-			(927	)
Segment profit		4,047			1,053			(615	)		4,485			3,193			442			(1,129	)		2,506

Segment assets		49,233			21,270			573			71,076			33,720			12,499			210			46,429

Capital expenditures		1,502			2,839			-			4,341			698			83			-			781

The following table summarizes financial information for each of the business segments for the three months ended June 30, 2011 and 2010.

	Three months ended June 30, 2011 (unaudited)											Three months ended June 30, 2010 (unaudited)
	Fertilizer			Chemical			All other		Consolidated			Fertilizer			Chemical			All other			Consolidated
	US$’000			US$’000			US$’000		US$’000			US$’000			US$’000			US$’000			US$’000

Operating revenue		26,029			4,660			-		30,689			23,107			3,367			-			26,474
Cost of sales		(22,014	)		(3,654	)		-		(25,668	)		(19,424	)		(2,752	)		-			(22,176	)
Depreciation of property, plant and equipment		(30	)		(44	)		-		(74	)		(29	)		(39	)		-			(68	)
Amortization of intangible assets		-			-			-		-			-			-			-			-
Amortization of prepaid lease expenses		(12)			(4	)		-		(16	)		(5	)		(4	)		-			(9	)
Interest income		23			2			-		25			1			-			-			1
Interest expense		(147	)		(81	)		-		(228	)		(70	)		(28	)		(45	)		(143	)
Other segment income		6			10			-		16			4			13			-			17
Other segment expenses		(961	)		(287	)		(234		(1,482	)		(912	)		(157	)		(278	)		(1,347	)
Other finance cost		-			-			(142		(142	)		-			-			-			-
Income taxes		(591	)		(103	)		-		(694	)		(541	)		(76	)		-			(617	)
Segment profit		2,303			499			(376		2,426			2,131			324			(323	)		2,132

Segment assets		49,233			21,270			573		71,076			33,720			12,499			210			46,429

Capital expenditures		1,418			49			-		1,467			651			36			-			687

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

+ Details

Changda International Holdings, Inc. 10-Q