Segment reporting |
24. Segment reporting The accounting policies of the product sectors (each entity manufactures and sells different products and represents a different product sector) are the same as those described in the summary of significant accounting policies disclosed in the Company’s 2022 Annual Report on Form 10-K except that the disaggregated financial results for the product sectors have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting them in making internal operating decisions. Generally, the Company evaluates performance based on stand-alone product sector operating income and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at current market prices. Each product sector is considered a reporting segment. As of June 30, 2023, the Company had 16 product sectors, six of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Wuhu, Henglong KYB, Hubei Henglong and Brazil Henglong), and one holding company (Genesis). The other ten sectors were engaged in the development, manufacturing and sale of high polymer materials (Wuhu Hongrun), power steering parts (Shenyang), R&D services (Changchun Hualong), automobile steering columns (Jielong), provision of after-sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie), research and development of intelligent automotive technology (Jingzhou Qingyan), manufacture and sales of automotive motors and electromechanical integrated systems (Wuhan Hyoseong) and inspection and testing of automotive products (Zhirong). As of June 30, 2022, the Company had 15 product sectors, six of which were principal profit makers and were reported as separate sectors and engaged in the production and sales of power steering (Henglong, Jiulong, Wuhu, Henglong KYB, Hubei Henglong and Brazil Henglong), and one holding company (Genesis). The other nine sectors were engaged in the development, manufacturing and sale of high polymer materials (Wuhu Hongrun), power steering parts (Shenyang), R&D services (Changchun Hualong), automobile steering columns (Jielong), provision of after-sales and R&D services (HLUSA), production and sale of power steering (Chongqing Henglong), manufacture and sales of automobile electronic systems and parts (Wuhan Chuguanjie), research and development of intelligent automotive technology (Jingzhou Qingyan) and manufacture and sales of automotive motors and electromechanical integrated systems (Wuhan Hyoseong). The Company’s product sector information for the three and six months ended June 30, 2023 and 2022, is as follows (figures are in thousands of USD): | | | | | | | | | | | | | | | Net Product Sales | | Net Income/(Loss) | | | Three Months Ended | | Three Months Ended | | | June 30, | | June 30, | | | 2023 | | 2022 | | 2023 | | 2022 | Henglong | | $ | 67,292 | | $ | 52,808 | | $ | 2,431 | | $ | 2,485 | Jiulong | | | 19,681 | | | 18,357 | | | 1,427 | | | (981) | Wuhu | | | 6,986 | | | 9,991 | | | 194 | | | 52 | Hubei Henglong | | | 28,906 | | | 38,276 | | | 1,760 | | | 7,660 | Henglong KYB | | | 30,159 | | | 21,013 | | | 1,846 | | | 1,598 | Brazil Henglong | | | 12,167 | | | 8,477 | | | 1,667 | | | (1,262) | Other Entities | | | 24,459 | | | 21,517 | | | 1,856 | | | 1,382 | Total Segments | | | 189,650 | | | 170,439 | | | 11,181 | | | 10,934 | Corporate | | | — | | | — | | | (706) | | | (186) | Eliminations | | | (52,240) | | | (43,278) | | | 933 | | | (813) | Total | | $ | 137,410 | | $ | 127,161 | | $ | 11,468 | | $ | 9,935 |
| | | | | | | | | | | | | | | Net Product Sales | | Net Income/(Loss) | | | Six Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2023 | | 2022 | | 2023 | | 2022 | Henglong | | $ | 128,923 | | $ | 114,811 | | $ | 4,040 | | $ | 3,684 | Jiulong | | | 36,501 | | | 36,085 | | | 1,058 | | | (3,415) | Wuhu | | | 14,885 | | | 18,863 | | | 646 | | | 54 | Hubei Henglong | | | 63,563 | | | 71,219 | | | 2,534 | | | 4,823 | Henglong KYB | | | 67,355 | | | 50,820 | | | 4,624 | | | 2,167 | Brazil Henglong | | | 22,929 | | | 18,961 | | | 3,037 | | | 1,553 | Other Entities | | | 46,574 | | | 44,677 | | | 3,033 | | | 2,469 | Total Segments | | | 380,730 | | | 355,436 | | | 18,972 | | | 11,335 | Corporate | | | — | | | — | | | (856) | | | (421) | Eliminations | | | (101,077) | | | (91,879) | | | 1,235 | | | (830) | Total | | $ | 279,653 | | $ | 263,557 | | $ | 19,351 | | $ | 10,084 |
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