Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'GENERAL STEEL HOLDINGS INC | ' |
Entity Central Index Key | '0001239188 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 55,298,732 |
Trading Symbol | 'GSI | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash | $62,091 | $46,467 |
Restricted cash | 405,781 | 323,420 |
Notes receivable | 116,900 | 145,502 |
Restricted notes receivable | 357,250 | 357,900 |
Loans receivable - related parties | 4,540 | 69,319 |
Accounts receivable, net | 8,577 | 6,695 |
Accounts receivable - related parties | 3,252 | 14,966 |
Other receivables, net | 56,494 | 8,407 |
Other receivables - related parties | 51,501 | 68,382 |
Inventories | 177,383 | 212,671 |
Advances on inventory purchase | 79,855 | 79,715 |
Advances on inventory purchase - related parties | 29,667 | 46,416 |
Prepaid expense and other | 1,490 | 450 |
Prepaid taxes | 16,415 | 24,116 |
Short-term investment | 2,771 | 2,619 |
TOTAL CURRENT ASSETS | 1,373,967 | 1,407,045 |
PLANT AND EQUIPMENT, net | 1,250,542 | 1,167,836 |
OTHER ASSETS: | ' | ' |
Advances on equipment purchase | 21,715 | 6,499 |
Long-term other receivable | 0 | 43,008 |
Investment in unconsolidated entities | 1,161 | 1,166 |
Long-term deferred expense | 713 | 1,062 |
Intangible assets, net of accumulated amortization | 23,928 | 24,066 |
TOTAL OTHER ASSETS | 47,517 | 75,801 |
TOTAL ASSETS | 2,672,026 | 2,650,682 |
LIABILITIES AND DEFICIENCY | ' | ' |
Short term notes payable | 987,988 | 983,813 |
Accounts payable | 495,488 | 352,052 |
Accounts payable - related parties | 172,259 | 177,432 |
Short term loans - bank | 254,929 | 147,124 |
Short term loans - others | 130,170 | 147,323 |
Short term loans - related parties | 48,889 | 79,557 |
Current maturities of long-term loans - related party | 47,896 | 54,885 |
Other payables and accrued liabilities | 52,272 | 54,589 |
Other payable - related parties | 106,153 | 73,025 |
Customer deposits | 95,695 | 125,890 |
Customer deposits - related parties | 14,512 | 21,998 |
Deposit due to sales representatives | 28,184 | 33,870 |
Deposit due to sales representatives - related parties | 1,809 | 1,238 |
Taxes payable | 9,716 | 16,674 |
Deferred lease income, current | 2,178 | 2,120 |
TOTAL CURRENT LIABILITIES | 2,448,138 | 2,271,590 |
NON-CURRENT LIABILITIES: | ' | ' |
Long-term loans - related party | 24,450 | 38,088 |
Long-term other payable - related party | 0 | 43,008 |
Deferred lease income, noncurrent | 75,480 | 75,079 |
Capital lease obligations | 354,576 | 330,099 |
Profit sharing liability | 241,090 | 328,827 |
Other noncurrent liabilities | 1,402 | 0 |
TOTAL NON-CURRENT LIABILITIES | 696,998 | 815,101 |
TOTAL LIABILITIES | 3,145,136 | 3,086,691 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
DEFICIENCY: | ' | ' |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of September 30, 2013 and December 31, 2012 | 3 | 3 |
Common stock, $0.001 par value, 200,000,000 shares authorized, 57,771,038 and 57,269,838 shares issued, 55,298,732 and 54,797,532 shares outstanding as of September 30, 2013 and December 31, 2012, respectively | 58 | 57 |
Treasury stock, at cost, 2,472,306 shares as of September 30, 2013 and December 31, 2012 | -4,199 | -4,199 |
Paid-in-capital | 106,405 | 105,714 |
Statutory reserves | 6,263 | 6,076 |
Accumulated deficits | -414,696 | -381,782 |
Accumulated other comprehensive income | 2,471 | 10,185 |
TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | -303,695 | -263,946 |
NONCONTROLLING INTERESTS | -169,415 | -172,063 |
TOTAL DEFICIENCY | -473,110 | -436,009 |
TOTAL LIABILITIES AND DEFICIENCY | $2,672,026 | $2,650,682 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred Stock, par or stated value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 3,092,899 | 3,092,899 |
Preferred stock, shares outstanding | 3,092,899 | 3,092,899 |
Common Stock, par or stated value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 57,771,038 | 57,269,838 |
Common stock, shares, outstanding | 55,298,732 | 54,797,532 |
Treasury stock, shares | 2,472,306 | 2,472,306 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
SALES | $514,549 | $518,542 | $1,534,330 | $1,441,325 |
SALES - RELATED PARTIES | 95,546 | 192,883 | 380,707 | 698,824 |
TOTAL SALES | 610,095 | 711,425 | 1,915,037 | 2,140,149 |
COST OF GOODS SOLD | 511,932 | 528,586 | 1,550,829 | 1,426,589 |
COST OF GOODS SOLD - RELATED PARTIES | 89,932 | 196,435 | 387,446 | 693,482 |
TOTAL COST OF GOODS SOLD | 601,864 | 725,021 | 1,938,275 | 2,120,071 |
GROSS PROFIT (LOSS) | 8,231 | -13,596 | -23,238 | 20,078 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | -19,661 | -22,787 | -59,464 | -61,548 |
CHANGE IN FAIR VALUE OF PROFIT SHARING LIABILITY | 41,825 | 0 | 107,877 | 0 |
INCOME (LOSS) FROM OPERATIONS | 30,395 | -36,383 | 25,175 | -41,470 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Interest income | 2,835 | 4,337 | 8,657 | 13,039 |
Finance/interest expense | -25,503 | -36,615 | -81,355 | -138,929 |
Change in fair value of derivative liabilities | 0 | -55 | 1 | -48 |
Gain on disposal of equipment | 17 | 293 | 113 | 177 |
Income from equity investments | 47 | 44 | 137 | 80 |
Foreign currency transaction gain (loss) | 322 | -581 | 448 | -1,169 |
Lease income | 542 | 528 | 1,613 | 1,588 |
Other non-operating income (expense), net | 770 | 2,314 | 1,559 | 3,316 |
Other expense, net | -20,970 | -29,735 | -68,827 | -121,946 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | 9,425 | -66,118 | -43,652 | -163,416 |
PROVISION FOR INCOME TAXES | ' | ' | ' | ' |
Current | 25 | 100 | 201 | 510 |
Deferred | 0 | 0 | 0 | 169 |
Provision for income taxes | 25 | 100 | 201 | 679 |
NET INCOME (LOSS) | 9,400 | -66,218 | -43,853 | -164,095 |
Less: Net income (loss) attributable to noncontrolling interest | 5,599 | -24,620 | -10,939 | -61,336 |
NET INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | 3,801 | -41,598 | -32,914 | -102,759 |
NET INCOME (LOSS) | 9,400 | -66,218 | -43,853 | -164,095 |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Foreign currency translation adjustments | -2,547 | -698 | -12,283 | -577 |
COMPREHENSIVE INCOME (LOSS) | 6,853 | -66,916 | -56,136 | -164,672 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 4,782 | -24,888 | -15,508 | -61,721 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $2,071 | ($42,028) | ($40,628) | ($102,951) |
WEIGHTED AVERAGE NUMBER OF SHARES | ' | ' | ' | ' |
Basic and Diluted (in shares) | 55,141 | 54,466 | 54,976 | 54,946 |
LOSS PER SHARE | ' | ' | ' | ' |
Basic and Diluted (in dollars per share) | $0.07 | ($0.76) | ($0.60) | ($1.87) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($43,853) | ($164,095) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ' | ' |
Depreciation, amortization and depletion | 64,955 | 62,538 |
Change in fair value of derivative liabilities | -1 | 48 |
Gain on disposal of equipment | -113 | -177 |
Provision for doubtful accounts | -251 | 2,316 |
Reservation of mine maintenance fee | 315 | 3 |
Stock issued for services and compensation | 692 | 679 |
Amortization of deferred financing cost on capital lease | 27,778 | 32,363 |
Income from equity investments | -137 | -80 |
Foreign currency transaction gain | -448 | 1,169 |
Deferred tax assets | 0 | 169 |
Deferred lease income | -1,613 | -1,588 |
Change in fair value of profit sharing liability | -107,877 | 0 |
Changes in operating assets and liabilities | ' | ' |
Notes receivable | 32,138 | -99,337 |
Accounts receivable | -483 | 5,429 |
Accounts receivable - related parties | 11,968 | -7,607 |
Other receivables | -3,466 | -5,460 |
Other receivables - related parties | -55,744 | 4,784 |
Inventories | 4,191 | 73,024 |
Advances on inventory purchases | 1,996 | -23,365 |
Advances on inventory purchases - related parties | -27,882 | -88,412 |
Prepaid expense and other | -1,016 | -183 |
Long-term deferred expense | 373 | 119 |
Prepaid taxes | 8,250 | 4,168 |
Accounts payable | 113,592 | -48,059 |
Accounts payable - related parties | 54,364 | 31,353 |
Other payables and accrued liabilities | -3,742 | 34,286 |
Other payables - related parties | -12,844 | 95,746 |
Customer deposits | -33,185 | -9,490 |
Customer deposits - related parties | -7,981 | 14,740 |
Taxes payable | -7,317 | -5,195 |
Other noncurrent liabilities | 1,384 | 0 |
Net cash provided by (used in) operating activities | 14,043 | -90,114 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Restricted cash | -72,676 | -35,094 |
Loans to related parties | 1,460 | -69,247 |
Cash proceeds from (made to) short term investment | -80 | 40 |
Cash proceeds from sales of equipment | 16 | 19 |
Equipment purchase and intangible assets | -75,326 | -15,909 |
Effect on cash due to deconsolidating of a subsidiary | 0 | -2,972 |
Net cash used in investing activities | -146,606 | -123,163 |
CASH FLOWS FINANCING ACTIVITIES: | ' | ' |
Capital contributed by noncontrolling interest | 18,028 | 0 |
Payments made for treasury stock acquired | 0 | -1,404 |
Notes receivable - restricted | 10,218 | 521,866 |
Borrowings on short term notes payable | 1,348,631 | 1,382,976 |
Payments on short term notes payable | -1,370,832 | -1,637,570 |
Borrowings on short term loans - bank | 258,357 | 237,535 |
Payments on short term loans - bank | -155,390 | -355,008 |
Borrowings on short term loan - others | 148,678 | 160,554 |
Payments on short term loans - others | -169,558 | -193,964 |
Borrowings on short term loan - related parties | 362,202 | 269,362 |
Payments on short term loans - related parties | -274,718 | -221,134 |
Deposits due to sales representatives | -6,521 | 11,939 |
Deposit due to sales representatives - related parties | 531 | 285 |
Payments on current maturities of long-term loans - related party | -22,856 | 0 |
Net cash provided by financing activities | 146,770 | 175,437 |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 1,417 | 1,426 |
INCREASE (DECREASE) IN CASH | 15,624 | -36,414 |
CASH, beginning of period | 46,467 | 120,016 |
CASH, end of period | $62,091 | $83,602 |
Background
Background | 9 Months Ended |
Sep. 30, 2013 | |
Background [Abstract] | ' |
Background [Text Block] | ' |
Note 1 – Background | |
General Steel Holdings, Inc. (the “Company”) was incorporated on August 5, 2002 in the state of Nevada. The Company through its 100% owned subsidiary, General Steel Investment, operates steel companies serving various industries in the People’s Republic of China (“PRC”). The Company’s main operation is manufacturing and sales of steel products such as steel rebar, hot-rolled carbon and silicon sheets and spiral-weld pipes. The Company, together with its subsidiaries, majority owned subsidiaries and variable interest entity, is referred to as the “Group”. | |
On April 29, 2011, a 20-year Unified Management Agreement (“the Agreement”) was entered into between the Company, the Company’s 60%-owned subsidiary Shaanxi Longmen Iron and Steel Co., Ltd. (“Longmen Joint Venture”), Shaanxi Coal and Chemical Industry Group Co., Ltd. (“Shaanxi Coal”) and Shaanxi Iron and Steel Group (“Shaanxi Steel”). Shaanxi Steel is the controlling shareholder of Shaanxi Longmen Iron and Steel Group Co., Ltd (“Long Steel Group”) which is the non-controlling interest holder in Longmen Joint Venture, and Shaanxi Coal, a state owned entity, is the parent company of Shaanxi Steel. Under the terms of the Agreement, all manufacturing machinery and equipment of Longmen Joint Venture and the $603.2 million (or approximately RMB 3.7 billion) of newly constructed iron and steel making facilities owned by Shaanxi Steel, which includes one 400m 2 sintering machine, two 1,280m 3 blast furnaces, two 120 ton converters and some auxiliary systems, are managed collectively as a single virtual asset pool (“Asset Pool”). Longmen Joint Venture manages the Asset Pool as the principal operating entity and is responsible for the daily operations of the new and existing facilities. | |
The Agreement leverages each of the parties’ operating strengths, allowing the Longmen Joint Venture to derive the greatest benefit from the cooperation and the newly constructed iron and steel making facilities. At the designed efficiency level, these new facilities are expected to contribute three million tons of crude steel production capacity per year. | |
Longmen Joint Venture pays Shaanxi Steel for the use of the constructed iron and steel making facilities an amount equaling the depreciation expense on the equipment constructed by Shaanxi Steel as well as 40% of the pre-tax profit generated by the Asset Pool. The remaining 60% of the pre-tax profit is allocated to Longmen Joint Venture. As a result, the Company’s economic interest in the profit generated by Longmen Joint Venture decreased from 60% to 36%. However, the overall capacity under the management of Longmen Joint Venture has increased by three million tons, or 75%. The Agreement is also expected to improve Longmen Joint Venture’s cost structure through sustainable and steady sourcing of key raw materials and reduced transportation costs. The distribution of profit is subject to a prospective adjustment after the first two years based on each entity’s actual investment of time and resources into the Asset Pool. | |
The parties to the Agreement have agreed to establish the Shaanxi Longmen Iron and Steel Unified Management Supervisory Committee ("Supervisory Committee") to ensure that the facilities and related resources are being operated and managed according to the stipulations set forth in the Agreement. However, the Board of Directors of Longmen Joint Venture, of which the Company holds 4 out of 7 seats, requires a simple majority vote. Therefore, the Board of Directors of Longmen Joint Venture remains the controlling decision-making body of Longmen Joint Venture and the Asset Pool. See Note 2(c) “Consolidation of VIE.” | |
The Agreement constitutes an arrangement that involves a lease which met certain of the criteria of a capital lease and therefore, the lease is accounted for as such by Longmen Joint Venture as a capital lease. See Notes 2 “Summary of significant accounting policies”, 15 “Capital lease obligations” and 16 “Profit sharing liability”. | |
Summary_of_significant_account
Summary of significant accounting policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
Note 2 – Summary of significant accounting policies | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The financial statements include the accounts of all directly, indirectly owned subsidiaries and the variable interest entity listed below. All material intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary to give a fair statement have been included. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the 2012 annual report filed on Form 10-K filed on June 17, 2013. | |||||||||||||||||
(a) | Basis of presentation | ||||||||||||||||
The unaudited condensed consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | |||||||||||||||||
Percentage | |||||||||||||||||
Subsidiary | of Ownership | ||||||||||||||||
General Steel Investment Co., Ltd. | British Virgin Islands | 100 | % | ||||||||||||||
General Steel (China) Co., Ltd. (“General Steel (China)”) | PRC | 100 | % | ||||||||||||||
Baotou Steel – General Steel Special Steel Pipe Joint Venture Co., Ltd. | PRC | 80 | % | ||||||||||||||
Yangpu Shengtong Investment Co., Ltd. | PRC | 99.1 | % | ||||||||||||||
Tianjin Qiu Steel Investment Co., Ltd. (“Qiu Steel”) | PRC | 98.7 | % | ||||||||||||||
Longmen Joint Venture | PRC | VIE/60.0 | % | ||||||||||||||
Maoming Hengda Steel Company, Ltd. (“Maoming Hengda”) | PRC | 99 | % | ||||||||||||||
Tianwu General Steel Material Trading Co., Ltd (“Tianwu Joint Venture”) | PRC | 60 | % | ||||||||||||||
(b) | Principles of consolidation – subsidiaries | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, its variable interest entity (“VIE”) for which the Company is the ultimate primary beneficiary, and the VIE’s subsidiaries. | |||||||||||||||||
Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. | |||||||||||||||||
A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. | |||||||||||||||||
All significant inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
(c) | Consolidation of VIE | ||||||||||||||||
Prior to entering into the Unified Management Agreement on April 29, 2011, Longmen Joint Venture had been consolidated as the Company’s 60% direct owned subsidiary. Upon entering into the Unified Management Agreement on April 29, 2011, Longmen Joint Venture was re-evaluated by the Company to determine if Longmen Joint Venture is a VIE and if the Company is the primary beneficiary. | |||||||||||||||||
Based on projected profits in this entity and future operating plans, Longmen Joint Venture ’s equity at risk is considered insufficient to finance its activities and therefore Longmen Joint Venture is considered to be a VIE. | |||||||||||||||||
The Company would be considered the primary beneficiary of the VIE if it has both of the following characteristics: | |||||||||||||||||
a. | The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and | ||||||||||||||||
b. | The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||||||||||||
A Supervisory Committee was formed during the negotiation of the Unified Management Agreement. Given there is both a Supervisory Committee and a Board with respect to Longmen Joint Venture , the powers (rights and roles) of both bodies were considered to determine which party has the power to direct the activities of Longmen Joint Venture , and by extension, whether the Company continues to have the power to direct Longmen Joint Venture ’s activities after this Supervisory Committee was formed and the significant investment in plant and equipment by owners of the Longmen Joint Venture partner, as discussed in Note 1- “Background”. The Supervisory Committee, which the Company holds 2 out of 4 seats, requires a ¾ majority vote, while the Board, which the Company holds 4 out of 7 seats, requires a simple majority vote. As the Supervisory Committee’s role is limited to supervising and monitoring management of Longmen Joint Venture and in the event there is any disagreement between the Board and the Supervisory Committee, the Board prevails, the Supervisory Committee is considered subordinate to the Board. Thus, the Board of Directors of Longmen Joint Venture continues to be the controlling decision-making body with respect to Longmen Joint Venture. The Company, which controls 60% of the voting rights of the Board of Directors, has control over the operations of Longmen Joint Venture and as such, has the power to direct the activities of the VIE that most significantly impact Longmen Joint Venture ’s economic performance. | |||||||||||||||||
In connection with the Unified Management Agreement, the Company, Shaanxi Coal and Shaanxi Steel may provide such support on a discretionary basis or as needed in the future. See Note 2 item (d) Liquidity. | |||||||||||||||||
The Company has the obligation to absorb losses and the rights to receive benefits based on the profit allocation as stipulated by the Unified Management Agreement that are significant to the VIE. As both conditions are met, the Company is the primary beneficiary of Longmen Joint Venture and therefore, continues to consolidate Longmen Joint Venture as a VIE. | |||||||||||||||||
The Company believes that the Unified Management Agreement between Longmen Joint Venture and Shaanxi Coal is in compliance with PRC law and is legally enforceable. The Board of Directors of Longmen Joint Venture continues to be the controlling decision-making body with respect to Longmen Joint Venture. The Company, which controls 60% of the voting rights of the Board of Directors, has control over the operations of Longmen Joint Venture and as such, has the power to direct the activities of the VIE. However, PRC law and/or uncertainties in the PRC legal system could limit the Company’s ability to enforce the Unified Management Agreement, which in turn, may lead to reconsideration of the VIE assessment and the potential for a different conclusion. The Company makes ongoing assessment to determine whether Longmen Joint Venture is a VIE. | |||||||||||||||||
The carrying amount of the VIE and its subsidiaries’ consolidated assets and liabilities are as follows: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 1,253,672 | $ | 1,285,967 | |||||||||||||
Plant and equipment, net | 1,239,805 | 1,154,811 | |||||||||||||||
Other noncurrent assets | 44,475 | 72,428 | |||||||||||||||
Total assets | 2,537,952 | 2,513,206 | |||||||||||||||
Total liabilities | -3,006,938 | -2,943,761 | |||||||||||||||
Net liabilities | $ | -468,986 | $ | -430,555 | |||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 950,498 | $ | 971,117 | |||||||||||||
Accounts payable | 466,631 | 324,563 | |||||||||||||||
Accounts payable - related parties | 171,759 | 177,160 | |||||||||||||||
Short term loans - bank | 215,955 | 114,935 | |||||||||||||||
Short term loans - others | 123,974 | 141,290 | |||||||||||||||
Short term loans - related parties | 42,613 | 35,839 | |||||||||||||||
Current maturities of long-term loans – related party | 56,372 | 54,885 | |||||||||||||||
Other payables and accrued liabilities | 43,978 | 29,769 | |||||||||||||||
Other payables - related parties | 96,901 | 64,941 | |||||||||||||||
Customer deposits | 94,767 | 109,120 | |||||||||||||||
Customer deposits - related parties | 14,512 | 21,998 | |||||||||||||||
Deposit due to sales representatives | 28,184 | 33,870 | |||||||||||||||
Deposit due to sales representatives – related parties | 1,809 | 1,238 | |||||||||||||||
Taxes payable | 8,258 | 15,339 | |||||||||||||||
Deferred lease income | 2,178 | 2,120 | |||||||||||||||
Intercompany payable to be eliminated | - | 30,476 | |||||||||||||||
Total current liabilities | 2,318,416 | 2,128,660 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 15,974 | 38,088 | |||||||||||||||
Long-term other payable – related party | - | 43,008 | |||||||||||||||
Deferred lease income - noncurrent | 75,480 | 75,079 | |||||||||||||||
Capital lease obligations | 354,576 | 330,099 | |||||||||||||||
Profit sharing liability | 241,090 | 328,827 | |||||||||||||||
Other noncurrent liabilities | 1,402 | - | |||||||||||||||
Total non-current liabilities | 688,522 | 815,101 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 3,006,938 | $ | 2,943,761 | |||||||||||||
VIE and its subsidiaries’ statements of operations are as follows: | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 606,444 | $ | 708,974 | |||||||||||||
Gross profit (loss) | $ | 8,122 | $ | -18,417 | |||||||||||||
Income (loss) from operations | $ | 32,967 | $ | -37,000 | |||||||||||||
Net income (loss) attributable to controlling interest | $ | 8,284 | $ | -39,494 | |||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 1,903,933 | $ | 2,126,556 | |||||||||||||
Gross profit (loss) | $ | -23,704 | $ | 12,628 | |||||||||||||
Income (loss) from operations | $ | 32,998 | $ | -40,071 | |||||||||||||
Net loss attributable to controlling interest | $ | -18,335 | $ | -92,974 | |||||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Prior to March 1, 2012, Longmen Joint Venture had three consolidated subsidiaries, Hualong Fire Retardant Material Co., Ltd. (“Hualong”), Hancheng Tongxing Metallurgy Co., Ltd. (“Tongxing”) and Beijing Huatianyulong International Steel Trading Co., Ltd. (“Huatianyulong”), in which Longmen Joint Venture did not hold a controlling interest. On March 1, 2012, Longmen Joint Venture sold its equity interest in Tongxing, and, as of March 31, 2012, Longmen Joint Venture has two consolidated subsidiaries, Hualong and Huatianyulong, in which it does not hold a controlling interest. Hualong and Huatianyulong are separate legal entities which were established in the PRC as limited liability companies and subsequently acquired by Longmen Joint Venture in June 2007 and July 2008, respectively. Prior to and subsequent to their acquisition by Longmen Joint Venture, these two entities have been operating as self-sustaining integrated sets of activities and assets conducted and managed for the purpose of providing a return to shareholders consisting of all the inputs, processes and outputs of a business. However, these two entities do not meet the definition of variable interest entities. Further consideration was given to whether consolidation was appropriate under the voting interest model, specifically where the power of control may exist with a lesser percentage of ownership (i.e. less than 50%), for example, by contract, lease, agreement with other stockholders or by court decree. | |||||||||||||||||
Hualong | |||||||||||||||||
Longmen Joint Venture, the single largest shareholder, holds a 36.0% equity interest in Hualong. The other two shareholders, who own 34.67% and 29.33% respectively, assigned their voting rights to Longmen Joint Venture in writing at the time of the acquisition of Hualong. The voting rights have been assigned through the date Hualong ceases its business operations or the other two shareholders sell their interest in Hualong. Hualong’s main business is to supply refractory. | |||||||||||||||||
Tongxing | |||||||||||||||||
Prior to March 1, 2012, Longmen Joint Venture held a 22.76% equity interest in Tongxing while hundreds of employees of Longmen Joint Venture owned the remaining 77.24%. Each individual employee shareholder comprising the remaining 77.24% assigned its voting rights to Longmen Joint Venture in writing at the time of the acquisition of Tongxing. The voting rights assigned were effective until Tongxing ceased its business operations or Longmen Joint Venture liquidated its equity interest of Tongxing, whichever came first. | |||||||||||||||||
On March 1, 2012, Longmen Joint Venture sold its 22.76% equity interest of Tongxing to two individuals, who are the representatives from Long Steel Group. As of March 1, 2012, Tongxing had a carrying value of net assets of $40.5 million which were included in the consolidated net assets of the Company and a noncontrolling interest in Tongxing of $32.5 million. The Company retained the land use right associated with the Tongxing property adjacent to the Longmen Joint Venture facility, which had a carrying value of $3.6 million immediately prior to the transaction and relinquished its controlling interest in the remaining net assets (primarily operating assets). In connection with the transaction, the Company also settled with a payable in cash of $0.3 million and transferred the dividend receivable of $0.9 million from Tongxing to the two individuals. These arrangements meet the criteria of ASC 810-10-40-6b and 6d, deconsolidation of a Subsidiary with multiple arrangements treated as a single transaction. As the land use rights held in Tongxing have been included as part of the Company’s consolidated assets, this transaction was considered as a change in the Company’s ownership interest in the land use right similar to a change in a parent company’s ownership interest in a subsidiary in accordance with ASC 810-10-45-23 and therefore the carrying value of the land use right was not stepped up to fair value. The net impact of these transactions resulted in a reduction of $3.1 million paid-in capital on March 1, 2012. | |||||||||||||||||
Huatianyulong | |||||||||||||||||
Longmen Joint Venture holds a 50.0% equity interest in Huatianyulong and the other unrelated shareholder holds the remaining 50.0%. The other shareholder assigned its voting rights to Longmen Joint Venture in writing at the time of acquisition of Huatianyulong. The voting rights have been assigned through the date Huatianyulong ceases its business operation or the other unrelated shareholder sells its interest in Huatianyulong. Huatianyulong mainly sells imported iron ore. | |||||||||||||||||
The Company has determined that it is appropriate for Longmen Joint Venture to consolidate Hualong and Huatianyulong with appropriate recognition in the Company’s financial statements of the non-controlling interests in each entity, beginning on the acquisition dates as these were also the effective dates of the agreements with other stockholders granting a majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. The Company also has determined that it is appropriate for Longmen Joint Venture to consolidate Tongxing’s net income from the beginning of the acquisition date to March 1, 2012, the date on which Longmen Joint Venture relinquished its equity interest and majority voting rights in Tongxing, and thereby its power of control of Tongxing. | |||||||||||||||||
(d) | Liquidity | ||||||||||||||||
The Company’s accounts have been prepared in accordance with U.S. GAAP on a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon aligning its sources of funding (debt and equity) with the expenditure requirements of the Company and repayment of the short-term debt facilities as and when they fall due. | |||||||||||||||||
The steel business is capital intensive and as a normal industry practice in PRC, the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties, financing sales, bank acceptance notes, and capital leases have been utilized to finance the working capital requirements and the capital expenditures of the Company. As a result, the Company’s debt to equity ratio as of September 30, 2013 and December 31, 2012 were (6.6) and (7.1), respectively. As of September 30, 2013, the Company’s current liabilities exceed current assets (excluding non-cash item) by $1.1 billion. | |||||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for majority of total sales of the Company. As such, the majority of the Company’s working capital needs come from Longmen Joint Venture. The Company’s ability to continue as a going concern depends heavily on Longmen Joint Venture’s operations. Longmen Joint Venture has obtained different types of financial supports, which are listed below by category: | |||||||||||||||||
Line of credit | |||||||||||||||||
The Company received lines of credit from the listed major banks totaling $110.8 million with expiration dates ranging from September 27, 2014 to October 26, 2014. | |||||||||||||||||
Amount of | |||||||||||||||||
Line of Credit | |||||||||||||||||
Banks | (in millions) | Repayment Date | |||||||||||||||
Bank of China | 6.5 | August 25, 2014 to October 26, 2014 | |||||||||||||||
China Everbright Bank | 48.9 | 8-Oct-14 | |||||||||||||||
Bank of Xi’an | 32.6 | 9-Oct-14 | |||||||||||||||
Bank of Jinzhou | 22.8 | September 27, 2014* | |||||||||||||||
Total | $ | 110.8 | |||||||||||||||
* Management expects the line of credit will be extended after September 27, 2014. | |||||||||||||||||
As of the date of this report, the Company utilized $61.9 million of these lines of credit. | |||||||||||||||||
Vendor financing | |||||||||||||||||
Longmen Joint Venture signed additional vendor financing agreements, which will provide liquidity to the Company in a total amount of $815.0 million with the following companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company A – related party | January 6, 2013 – January 5, 2015 | $ | 163 | ||||||||||||||
Company B – third party | January 6, 2013 – November 7, 2015 | 163 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2015 | 489 | |||||||||||||||
Total | $ | 815 | |||||||||||||||
Company A, a related party company and Company B, a third party company, are both Longmen Joint Venture’s major coke suppliers. They have been doing business with Longmen Joint Venture for years. Each company has signed a two-year agreement with Longmen Joint Venture which was effective on January 6, 2013 to finance Longmen Joint Venture for its coke purchase for a two-year period. Company B signed an additional two-year agreement with Longmen Joint Venture effective on November 7, 2013. According to the above signed agreement, both Company A and B will not demand any cash payments for next two years. As of the date of this report, our payables to Company A and Company B were approximately$64.3 million and $51.9 million, respectively. | |||||||||||||||||
As a critical business stakeholder to the Company’s Tianwu Joint Venture, Company C is a Fortune 500 Company. In October 2012, Company C signed a one year agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $158.3 million to commence on October 1, 2012. In June 2013, Company C signed another one year agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $318.4 million to commence on October 1, 2013. According to the agreement, Company C agrees to provide an amount not less than $318.4 million in iron ore to Longmen Joint Venture. Subject to the terms of the agreement, Longmen Joint Venture is subject to a penalty of 0.05% of the daily outstanding balance owed to Company C in an event of late payment. The agreement also helps secure Company C’s iron ore sales to Longmen Joint Venture. On June 28, 2013, Company C agreed to increase the finance amount limit to $489.0 million and extended the financing period to March 31, 2015. As of the date of this report, our payable to Company C is approximately$1.2 million. | |||||||||||||||||
Financing sales | |||||||||||||||||
As part of our working capital management, Longmen Joint Venture has entered into an additional financing sales agreement with a third party company, Company D and two 100% owned subsidiaries of Longmen Joint Venture, named Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”) (“financing sales”) to provide liquidity to the Company in the total amount of $81.5 million. See Note 9 for financing sales details. | |||||||||||||||||
Based on the contract terms, from December 31, 2012 until the earlier of the expiration date of the contract or December 31, 2013, the advance payment balance from Company D cannot be less than $81.5 million. The contract has been extended to December 31, 2014. The remaining financing sales balance can be paid by installment based on Longmen Joint Venture’s goods delivery volume. As of the date of this report, our payable to Company D is approximately $24.5 million. | |||||||||||||||||
Other financing | |||||||||||||||||
On January 7, 2013, November 6, 2013 and November 7, 2013, Longmen Joint Venture signed a payment extension agreement with each company listed below. In total, Longmen Joint Venture can get $77.4 million in financial support from a two-year balancing payment extension granted by the following five companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company E – related party | January 7, 2013 – January 6, 2015 | $ | 16.3 | ||||||||||||||
Company F – related party | January 7, 2013 – January 6, 2015 | 21.2 | |||||||||||||||
Company G – related party | January 7, 2013 – January 6, 2015 | 7.3 | |||||||||||||||
Company H – related party | November 7, 2013 – November 7, 2015 | 16.3 | |||||||||||||||
Company I – related party | November 6, 2013 – November 6, 2015 | 16.3 | |||||||||||||||
Total | $ | 77.4 | |||||||||||||||
According to the contract terms, Company E, Company F, Company G, Company H and Company I have agreed to grant a two year payment extension in the amounts of $16.3 million, $21.2 million, $7.3 million, $16.3 million and $16.3 million respectively. As of the date of this report, our payables to Company E, Company F, Company G, Company H and Company I are approximately $17.9 million, $14.0 million, $18.9million, $7.5 million and $0, respectively. | |||||||||||||||||
Amount due to sales representatives | |||||||||||||||||
Longmen Joint Venture entered into agreements with various entities to act as the Company’s exclusive sales agents in specified geographic areas. These exclusive sales agents must meet certain criteria and are required to deposit a certain amount of money with the Company. In return, the sales agents receive exclusive sales rights in a specified area and discounted prices on products they order. These deposits bear no interest and are required to be returned to the sales agent once the agreement is terminated. As of September 30, 2013, Longmen Joint Venture has collected a total amount of $30.0 million. Historically, this amount is quite stable and we do not expect a big fluctuation in this amount for the next twelve months from September 30, 2013 onwards. | |||||||||||||||||
With the financial support from the banks and the companies above, management is of the opinion that the Company has sufficient funds to meet its future operations, working capital requirements and debt obligations until the end of September 30, 2014.The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | |||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months ended | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Current liabilities over current assets (excluding non-cash items) as of September 30, 2013 (unaudited) | $ | -1,072.00 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 110.8 | ||||||||||||||||
Cash provided by vendor financing | 815 | ||||||||||||||||
Cash provided by financing sales | 81.5 | ||||||||||||||||
Cash provided by other financing | 77.4 | ||||||||||||||||
Cash provided by sales representatives | 30 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended September 30, 2014 | -28.6 | ||||||||||||||||
Net projected change in cash for the twelve months ended September 30, 2014 | $ | 14.1 | |||||||||||||||
As a result, the unaudited condensed consolidated financial statements for the period ended September 30, 2013 have been prepared on a going concern basis. | |||||||||||||||||
(e) | Use of estimates | ||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited condensed consolidated financial statements and footnotes. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the fair value of the profit sharing liability, the useful lives of and impairment for property, plant and equipment, and potential losses on uncollectible receivables, allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital lease and the present value of the net minimum lease payments of the capital lease. Actual results could differ from these estimates. | |||||||||||||||||
(f) | Concentration of risks and uncertainties | ||||||||||||||||
The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |||||||||||||||||
The Company has significant exposure to the fluctuation of raw materials and energy prices as part of its normal operations. As of September 30, 2013 and December 31, 2012, the Company does not have any open commodity contracts to mitigate such risks. | |||||||||||||||||
Cash includes demand deposits in accounts maintained with banks within the PRC, Hong Kong and the United States. Total cash (including restricted cash balances) in these banks on September 30, 2013 and December 31, 2012 amounted to $467.9 million and $369.9 million, including $3.1 million and $2.3 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of September 30, 2013, $0.2 million cash in the bank was covered by insurance. The Company has not experienced any losses in other bank accounts and believes it is not exposed to any risks on its cash in bank accounts. | |||||||||||||||||
The Company’s five major customers are all distributors and collectively represented approximately 25.5% and 23.4% of the Company’s total sales for the three and nine months ended September 30, 2013, respectively. The Company had five major customers, which represented approximately 27.2% and 34.1% of the Company’s total sales for the three months and nine months ended September 30, 2012, respectively. None of the five major customers accounted for more than 10% of total sales for the three and nine months ended September 30, 2013 and 2012, respectively. These five major customers accounted for 15.9% and 47.8% of total accounts receivable, including related parties, as of September 30, 2013 and December 31, 2012, respectively. One of the five major customers accounted for more than 10% of total accounts receivable, which amounted to $1.4 million and $10.4 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
For the three and nine months ended September 30, 2013, the Company purchased approximately 15.3% and 29.3% of its raw materials from five major suppliers, respectively. None of the five major suppliers individually accounted for more than 10% of the total purchases for the three and nine months ended September 30, 2013. The purchases from the five major suppliers represent approximately 25.4% and 39.6% of the Company’s total purchases for the three months and nine months ended September 30, 2012, respectively. Two of the five major suppliers individually accounted for more than 10% of the total purchases for the nine months ended September 30, 2012. These five vendors accounted for 28.9% and 33.8% of total accounts payable, including related parties, as of September 30, 2013 and December 31, 2012, respectively. None of the five major suppliers individually accounted for more than 10% of total accounts payable as September 30, 2013 and one of the five major suppliers individually accounted for more than 10% of total accounts payable as December 31, 2012. | |||||||||||||||||
(g) | Foreign currency translation and other comprehensive income | ||||||||||||||||
The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries in China use the local currency, Renminbi (RMB), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | |||||||||||||||||
Translation adjustments included in accumulated other comprehensive income amounted to $2.5 million and $10.2 million as of September 30, 2013 and December 31, 2012, respectively. The balance sheet amounts, with the exception of equity at September 30, 2013 and December 31, 2012 were translated at 6.13 RMB and 6.30 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the three months ended September 30, 2013 and 2012 were 6.16 RMB and 6.33 RMB, respectively. The average translation rates applied to statement of operations accounts for the nine months ended September 30, 2013 and 2012 were 6.21 RMB and 6.31 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
(h) | Financial instruments | ||||||||||||||||
The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, short term investment, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. For short term loans and notes payable, the Company concluded the carrying values are a reasonable estimate of fair values because of the short period of time between the origination and repayment and as their stated interest rates approximate current rates available. | |||||||||||||||||
The Company analyzes all financial instruments with features of both liabilities and equity, pursuant to which the Company’s warrants were required to be recorded as a liability at fair value and marked to market each reporting period. | |||||||||||||||||
The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: | |||||||||||||||||
· | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||
· | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | ||||||||||||||||
· | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. | ||||||||||||||||
On December 13, 2007, the Company entered into a Securities Purchase Agreement (the “Agreement”) with certain institutional investors issuing $40.0 million (“Notes”) and 1,154,958 warrants. The warrants can be exercised for common stock through May 13, 2013 at $13.51 per share, subject to customary anti-dilution adjustments. On December 24, 2009, the holders of the existing warrants of 1,154,958 shares entered into an agreement with the Company that reset the exercise price from $13.51 to $5 per share and increased the number of warrants from 1,154,958 to 3,900,871, which expired on May 13, 2013. | |||||||||||||||||
In December 2009, the Company issued an additional 2,777,778 warrants in connection with a registered direct offering, which expired as of June 24, 2012. | |||||||||||||||||
The aforementioned warrants meet the definition of a derivative instrument in the accounting standards. Therefore these instruments were accounted for as derivative liabilities and recorded at their fair value as of each reporting period. The change in the value of the derivative liabilities is charged against or credited to income. The fair value was determined using the Cox Rubenstein Binomial Model, defined in the accounting standard as Level 2 inputs, and recorded the change in earnings. See Note 12– “Convertible notes and derivative liabilities” for the variables used in the Cox Rubenstein Binomial model. | |||||||||||||||||
The Company determined the carrying value of the profit sharing liability using Level 3 inputs by considering the present value of Longmen Joint Venture’s projected profits/losses with a discount rate of 7.3% based on the Company’s average borrowing rate. The projected profits/losses in Longmen Joint Venture were based upon, but not limited to, the following assumptions until April 30, 2031: | |||||||||||||||||
· | projected selling units and growth in the steel market | ||||||||||||||||
· | projected unit selling price in the steel market | ||||||||||||||||
· | projected unit purchase cost in the coal and iron ore markets | ||||||||||||||||
· | selling and general and administrative expenses to be in line with the growth in the steel market | ||||||||||||||||
· | projected bank borrowings | ||||||||||||||||
The above assumptions were reviewed by the Company at September 30, 2013 and the Company changed those assumptions as compared to the assumption used at December 31, 2012 because of the changes in market conditions in PRC. Since the Company had the most updated information from the banks, GDP report and the operating results from the three and nine months ended September 30, 2013, all of the above information indicated the downward trend in the steel manufacturing industry in the coming years. As a result, the Company re-measured the fair value of the 40% profit sharing liability as of the period ended September 30, 2013 and recorded a gain on change in fair value of profit sharing liability of $41.8 million and $107.9 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
If there will be any slight changes in any of the assumptions that we used, the fair value of the profit sharing liability will be changed accordingly. If we would reduce the projected bank borrowings rate by 1.0% and other factors remained unchanged, our profit sharing liability as of the beginning of the period ended September 30, 2013 would have been $254.9 million and we would reduce the gain from the change in the fair value of profit sharing liabilities by $32.9 million.If we would reduce the projected selling units and growth in the steel market rate by 1.0% and other factors remained unchanged, our profit sharing liability as of the beginning of the period ended September 30, 2013 would have been $214.3 million and we would increase the gain from the change in the fair value of profit sharing liabilities by $8.3 million. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||||||
of September 30, | 2013 | ||||||||||||||||
(in thousands) | 2013 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
Total | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||||||
of December 31, | 2012 | ||||||||||||||||
(in thousands) | 2012 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Derivative liabilities | $ | 1 | $ | - | $ | 1 | $ | - | |||||||||
Profit sharing liability | 328,827 | - | - | 328,827 | |||||||||||||
Total | $ | 328,828 | $ | - | $ | 1 | $ | 328,827 | |||||||||
The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the nine month ended September 30, 2013 and for the year ended December 31, 2012: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 328,828 | $ | 303,243 | |||||||||||||
Change in fair value of profit sharing liability | -107,877 | - | |||||||||||||||
Current period interest expense accreted | 12,440 | 22,499 | |||||||||||||||
Change of derivative liabilities charged to earnings | 1 | 9 | |||||||||||||||
Exchange rate effect | 7,698 | 3,077 | |||||||||||||||
Ending balance | $ | 241,090 | $ | 328,828 | |||||||||||||
Except for the derivative liabilities and profit sharing liability, the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with the accounting standard. The carrying value of the long term loans-related party approximates to its fair value as of the reporting date. | |||||||||||||||||
(i) | Notes receivable | ||||||||||||||||
Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. | |||||||||||||||||
Restricted notes receivable represents notes receivable pledged as collateral for short-term loans and short-term notes payable issued by banks. | |||||||||||||||||
Interest expenses for early submission request of payment for the three months ended September 30, 2013 and 2012 amounted to $9.6 million and $16.3 million, respectively, and amounted to $26.9 million and $65.6 million, respectively, for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||
(j) | Plant and equipment, net | ||||||||||||||||
Plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows: | |||||||||||||||||
Buildings and Improvements | 10-40 Years | ||||||||||||||||
Machinery | 10-30 Years | ||||||||||||||||
Machinery and equipment under capital lease | 20 Years | ||||||||||||||||
Other equipment | 5 Years | ||||||||||||||||
Transportation Equipment | 5 Years | ||||||||||||||||
The Company assesses all significant leases for purposes of classification as either operating or capital. At lease inception, if the lease meets any of the four following criteria, the Company will classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | |||||||||||||||||
Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service, maintenance, repairs and minor renewals are charged directly to expense as incurred. Major additions and betterment to buildings and equipment are capitalized. Interest incurred during construction is capitalized into construction in progress. All other interest is expensed as incurred. | |||||||||||||||||
Long lived assets, including buildings and improvements, equipment and intangible assets are reviewed if events and changes in circumstances indicate that its carrying amount may not be recoverable, to determine whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | |||||||||||||||||
(j) | Intangible assets | ||||||||||||||||
Finite lived intangible assets of the Company are reviewed for impairment if events and circumstances require. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. As of September 30, 2013, the Company expects these assets to be fully recoverable. | |||||||||||||||||
Land use rights | |||||||||||||||||
All land in the PRC is owned by the government. However, the government grants “land use rights.” General Steel (China) acquired land use rights in 2001 for a total of $3.9 million (RMB 23.7 million). These land use rights are for 50 years and expire in 2050 and 2053. The Company amortizes the land use rights over the twenty-year business term because its business license had a twenty-year term. | |||||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.2 million (RMB 148.6 million) to the Longmen Joint Venture. The contributed land use rights are for 50 years and expire in 2048 to 2052. | |||||||||||||||||
Maoming Hengda has land use rights amounting to $2.7 million (RMB 16.6 million) for 50 years that expire in 2054. | |||||||||||||||||
Other than the land use rights that General Steel (China) acquired in 2001, the Company amortizes the land use rights over their 50 year term. | |||||||||||||||||
Entity | Original Cost | Expires on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,867 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,226 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,705 | 2054 | ||||||||||||||
Mining right | |||||||||||||||||
Mining rights are capitalized at cost when acquired, including amounts associated with any value beyond proven and probable reserves, and amortized to operations as depletion expense using the units-of-production method over the estimated proven and probable recoverable tons. Longmen Joint Venture has iron ore mining right amounting to $2.4 million (RMB 15.0 million), which is amortized over the estimated recoverable reserve of 4.2 million tons. | |||||||||||||||||
(k) | Investments in unconsolidated entities | ||||||||||||||||
Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method. | |||||||||||||||||
The table below summarizes Longmen Joint Venture’s investment holdings as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Year | Net investment | Owned | Net investment | Owned | |||||||||||||
Unconsolidated entities | acquired | (In thousands) | % | (In thousands) | % | ||||||||||||
Xian Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,161 | 24.1 | $ | 1,166 | 24.1 | ||||||||||
Total investment income in unconsolidated subsidiaries amounted to $0.05 million and $0.04 million for the three months ended September 30, 2013 and 2012, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2013 and 2012, respectively, which was included in “Loss from equity investments” in the unaudited condensed consolidated statements of operations and comprehensive income (loss). | |||||||||||||||||
(l) | Reclassifications | ||||||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. | |||||||||||||||||
Loans_receivable_related_parti
Loans receivable - related parties | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ' | |||||||
Loans Receivable Related Parties Disclosure [Text Block] | ' | |||||||
Note 3 – Loans receivable – related parties | ||||||||
Loans receivable – related parties represents amounts the Company expects to collect from related parties upon maturity. | ||||||||
The Company had the following loans receivable – related parties due within one year as of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Loans to Long Steel Group; due on demand and non-interest bearing. | - | 63,319 | ||||||
Loan to Teamlink Investment Co., Ltd; due in December 2013, June 2014, and July 2014; interest rate was 4.75% | 4,540 | 6,000 | ||||||
Total loans receivable – related parties | $ | 4,540 | $ | 69,319 | ||||
See Note 20 “Related party transactions and balances” for the nature of the relationship of related parties. | ||||||||
Total interest income for the loans amounted to $0.1 million and $0 for the three months ended September 30, 2013 and 2012, respectively. | ||||||||
Total interest income for the loans amounted to $0.2 million and $1.8 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
Accounts_receivable_including_
Accounts receivable (including related parties), net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable [Text Block] | ' | |||||||
Note 4 – Accounts receivable (including related parties), net | ||||||||
Accounts receivable, including related party receivables, net of allowance for doubtful accounts consists of the following: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 9,729 | $ | 8,062 | ||||
Less: allowance for doubtful accounts | -1,152 | -1,367 | ||||||
Accounts receivable – related parties | 3,252 | 14,966 | ||||||
Net accounts receivable | $ | 11,829 | $ | 21,661 | ||||
Movement of allowance for doubtful accounts is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 1,367 | $ | 2,023 | ||||
Charge to expense | - | 433 | ||||||
Less: recovery | -249 | -1,109 | ||||||
Exchange rate effect | 34 | 20 | ||||||
Ending balance | $ | 1,152 | $ | 1,367 | ||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
Note 5 – Inventories | ||||||||
Inventories consist of the following: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 23,302 | $ | 23,123 | ||||
Raw materials | 138,951 | 141,503 | ||||||
Finished goods | 22,527 | 57,630 | ||||||
Less: allowance for inventory valuation | -7,397 | -9,585 | ||||||
Total inventories | $ | 177,383 | $ | 212,671 | ||||
Raw materials consist primarily of iron ore and coke at Longmen Joint Venture. The cost of finished goods includes direct costs of raw materials as well as direct labor used in production. Indirect production costs at normal capacity such as utilities and indirect labor related to production such as assembling, shipping and handling costs for purchasing are also included in the cost of inventory. | ||||||||
The Company values its inventory at the lower of cost or market, determined on a weighted average method, or net realizable value. As of September 30, 2013 and December 31, 2012, the Company had provided allowance for inventory valuation in the amounts of $7.3 million and $9.6 million, respectively. | ||||||||
Movement of allowance for inventory valuation is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 9,585 | $ | 38,143 | ||||
Addition | 7,305 | 9,582 | ||||||
Less: write-off | -9,722 | -38,519 | ||||||
Exchange rate effect | 229 | 379 | ||||||
Ending balance | $ | 7,397 | $ | 9,585 | ||||
Advances_on_inventory_purchase
Advances on inventory purchases | 9 Months Ended |
Sep. 30, 2013 | |
Inventory Disclosure [Abstract] | ' |
Advances On Inventory Purchase [Text Block] | ' |
Note 6 – Advances on inventory purchases | |
Advances on inventory purchases are monies deposited or advanced to outside vendors or related parties on future inventory purchases. Most of the Company’s vendors require a certain amount of money to be deposited with them as a guarantee that the Company will complete its purchases on a timely basis. | |
This amount is refundable and bears no interest. The Company has legally binding contracts with its vendors, which require the deposit to be returned to the Company or netted against accounts payable due to its vendors to the extent there are unpaid balances when the contract ends. The inventory is normally delivered within one month after the monies have been advanced. The total outstanding amount, including advances to related parties, was $109.5 million and $126.1 million as of September 30, 2013 and December 31, 2012, respectively. | |
Plant_and_equipment_net
Plant and equipment, net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
Note 7 – Plant and equipment, net | ||||||||
Plant and equipment consist of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Buildings and improvements | $ | 253,621 | $ | 214,661 | ||||
Machinery | 616,813 | 573,572 | ||||||
Machinery under capital lease | 603,248 | 587,334 | ||||||
Transportation and other equipment | 22,085 | 20,274 | ||||||
Construction in progress | 58,111 | 4,645 | ||||||
Subtotal | 1,553,878 | 1,400,486 | ||||||
Less: accumulated depreciation | -303,336 | -232,650 | ||||||
Total | $ | 1,250,542 | $ | 1,167,836 | ||||
Construction in progress consisted of the following as of September 30, 2013: | ||||||||
Construction in progress | Value | Completion | ||||||
description | (In thousands) | date | ||||||
1.2 million tons high-strength steel production line | 32,268 | Dec-13 | ||||||
Iron-making system dust removing equipment | 3,307 | Nov-13 | ||||||
Drainage system | 499 | Nov-13 | ||||||
Factory wall repair | 241 | Nov-13 | ||||||
Gas pipe repair | 121 | Nov-13 | ||||||
Office buildings | 1,336 | Nov-13 | ||||||
Equipment updates | 7,381 | Nov-13 | ||||||
#5 blast furnace construction | 208 | Sep-14 | ||||||
Reconstruction of miscellaneous factory buildings | 690 | Jan-14 | ||||||
Project materials | 2,154 | |||||||
Others | 9,906 | |||||||
Total | $ | 58,111 | ||||||
The Group is obligated under a capital lease for the iron and steel making facilities, including one sintering machine, two converters, two blast furnaces and some auxiliary systems that expire on April 30, 2031. The carrying value of assets acquired under the capital lease consists of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Machinery | $ | 603,248 | $ | 587,334 | ||||
Less: accumulated depreciation | -69,248 | -46,497 | ||||||
Carrying value of leased assets | $ | 534,000 | $ | 540,837 | ||||
The Company assessed the recoverability of all of its remaining long-lived assets at December 31, 2012, and the sum of the discounted future cash flows expected to result from the long-lived assets and their disposition was less than the carrying value by $20.2 million (RMB 127.2 million), which was impaired and included in the selling, general and administrative expenses for the year ended December 31, 2012. The discounted cash flows were determined using certain expected changes to the current operational assumptions. If those expectations are not met, the Company may be required to record additional impairment charges in future periods. | ||||||||
The Company assessed the recoverability of all of its remaining long lived assets at September 30, 2013 and such assessment did not result in any other impairment charges for the three and nine months ended September 30, 2013. | ||||||||
Depreciation expense for the three months ended September 30, 2013 and 2012 amounted to $21.6 million and $20.8 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $64.1 and $61.4 million, respectively. These amounts include depreciation of assets held under capital leases for the three months ended September 30, 2013 and 2012, which amounted to $7.1 million and $7.0 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $21.2 and $20.9 million, respectively. | ||||||||
Intangible_assets_net
Intangible assets, net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
Note 8 – Intangible assets, net | ||||||||
Intangible assets consist of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,798 | $ | 29,986 | ||||
Mining right | 2,448 | 2,384 | ||||||
Software | 742 | 692 | ||||||
Subtotal | 33,988 | 33,062 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -8,387 | -7,577 | ||||||
Accumulated amortization – mining right | -1,144 | -993 | ||||||
Accumulated amortization – software | -529 | -426 | ||||||
Subtotal | -10,060 | -8,996 | ||||||
Intangible assets, net | $ | 23,928 | $ | 24,066 | ||||
The gross amount of the intangible assets amounted to $34.0 million and $33.1 million as of September 30, 2013 and December 31, 2012, respectively. The remaining weighted average amortization period is 33.7 years as of September 30, 2013. | ||||||||
Total amortization expense for the three months ended September 30, 2013 and 2012 amounted to $0.2 million and $0.3 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $0.7 million and $0.9 million, respectively. | ||||||||
Total depletion expense for the three months ended September 30, 2013 and 2012 amounted to $0.02 million and $0.1 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $0.1 million and $0.2 million, respectively. | ||||||||
The estimated aggregate amortization and depletion expenses for each of the five succeeding years is as follows: | ||||||||
Estimated | ||||||||
amortization and | Gross carrying | |||||||
Year ending | depletion expenses | amount | ||||||
(in thousands) | (in thousands) | |||||||
30-Jun-14 | $ | 1,082 | 22,846 | |||||
30-Jun-15 | 1,082 | 21,764 | ||||||
30-Jun-16 | 1,082 | 20,682 | ||||||
30-Jun-17 | 1,082 | 19,600 | ||||||
30-Jun-18 | 1,082 | 18,518 | ||||||
Thereafter | 18,518 | - | ||||||
Total | $ | 23,928 | ||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
Note 9 – Debt | ||||||||
Short-term notes payable | ||||||||
Short-term notes payable are lines of credit extended by banks. Banks in turn issue the Company a bank acceptance note, which can be endorsed and assigned to vendors as payments for purchases. The notes payable are generally payable within three to six months. This short-term note payable is guaranteed by the bank for its complete face value. The banks do not charge interest on these notes, but usually charge a transaction fee of 0.05% of the notes value. In addition, the banks usually require the Company to deposit either a certain amount of cash at the bank as a guarantee deposit, which is classified on the balance sheet as restricted cash, or provide notes receivable as security, which are classified on the balance sheet as restricted notes receivable. Restricted cash as a guarantee for the notes payable amounted to $405.8 million and $322.7 million as of September 30, 2013 and December 31, 2012, respectively. Restricted notes receivable as a guarantee for the notes payable amounted to $237.2 million and $345.8 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||
The Company had the following short-term notes payable as of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due various dates from October 2013 to March 2014. Restricted cash required of $24.5 million and $6.3 million as of September 30, 2013 and December 31, 2012, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 37,490 | $ | 12,696 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from October 2013 to August 2014. $381.3 million restricted cash and $237.2 million notes receivable are secured for notes payable as of September 30, 2013, and comparatively $316.4 million restricted cash and $345.8 million notes receivable secured as of December 31, 2012, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 950,498 | 971,117 | ||||||
Total short-term notes payable | $ | 987,988 | $ | 983,813 | ||||
Short-term loans | ||||||||
Short-term loans represent amounts due to various banks, other companies and individuals, including related parties, normally due within one year. The principal of the loans are due at maturity but can be renewed at the bank’s option. Accrued interest is due either monthly or quarterly. | ||||||||
Short term loans due to banks, related parties and other parties consisted of the following as of: | ||||||||
Due to banks | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from December 2013 to September 2014. Weighted average interest rate was 7.2% per annum and 7.6% per annum as of September 30, 2013 and December 31, 2012, respectively; some are guaranteed by third parties while others are secured by equipment and inventory. These loans were either repaid or renewed subsequently on the due dates. | $ | 38,973 | $ | 32,189 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from November 2013 to August 2014. Weighted average interest rate was 6.5% per annum and 6.8% per annum as of September 30, 2013 and December 31, 2012, respectively; some are guaranteed by third parties, restricted cash or notes receivables. $120.0 million and $76.0 million restricted notes receivable were secured for the loans as of September 30, 2013 and December 31, 2012, respectively; These loans were either repaid or renewed subsequently on the due dates. | 215,956 | 114,935 | ||||||
Total short-term loans - bank | $ | 254,929 | $ | 147,124 | ||||
As of September 30, 2013 and December 31, 2012, the Company had not met its financial covenants stipulated by certain loan agreements related to the Company’s debt to asset ratio. Based on the financial covenants, the Company should have kept its debt to asset ratio below 20% and 85% as of September 30, 2013 and December 31, 2012, respectively. However, as of September 30, 2013 and December 31, 2012, the Company's debt to asset ratio was 117.7% and 116.4%, respectively. | ||||||||
Furthermore, the Company is a party to a loan agreement with a cross default clause whereby any breach of loan covenants will automatically result in default of the loan. The outstanding balance of the short term loans affected by the above breach of covenants and cross default as of September 30, 2013 and December 31, 2012 was $6.4 million and $12.7 million, respectively. According to the Company’s short term loan agreements, the banks have the rights to request for more collateral or additional guarantees if the breach of covenant is not remedied or request early repayment of the loan if the Company does not cure such breach within a certain period of time. As of the date of this report, the Company has not received any notice from the banks to request more collateral, additional guarantees or early repayment of the short term loans due to the breach of covenant. | ||||||||
Due to unrelated parties | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from October 2013 to February 2014, and weighted average interest rate was 5.2% per annum and 6.0% per annum as of September 30, 2013 and December 31, 2012, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 33,294 | $ | 25,324 | ||||
Longmen Joint Venture: Loans from financing sales. | 90,680 | 115,966 | ||||||
Maoming Hengda: Loans from one unrelated parties and one related party, due on demand, none interest bearing. | 6,196 | 6,033 | ||||||
Total short-term loans – others | $ | 130,170 | $ | 147,323 | ||||
The Company had various loans from unrelated companies amounting to $130.2 million and $147.3 million as of September 30, 2013 and December 31, 2012, respectively. Of the $130.2 million, $6.2 million loans carry no interest, $90.7 million of financing sales are subject to interest rates ranging between 4.2% and 5.9%, and the remaining $33.3 million are subject to interest rates ranging from 4.7% to 12.0%. All short term loans from unrelated companies are payable on demand and unsecured. | ||||||||
As part of its working capital management, Longmen Joint Venture has entered into a number of sale and purchase back contracts ("contracts") with third party companies and Yuxin and Yuteng. According to the contracts, Longmen Joint Venture sells rebar to the third party companies at a certain price, and within the same month, Yuxin and Yuteng will purchase back the rebar from the third party companies at a price of 4.2% to 5.9% higher than the original selling price from Longmen Joint Venture. Based on the contract terms, Longmen Joint Venture is paid in advance for the rebar sold to the third party companies and Yuxin and Yuteng are given a credit period of several months to one year from the third party companies. There is no physical movement of the inventory during the sale and purchase back arrangement. The margin of 4.2% to 5.9% is determined by reference to the bank loan interest rates at the time when the contracts are entered into, plus an estimated premium based on the financing sale amount, which represents the interest charged by the third party companies for financing Longmen Joint Venture through the above sale and purchase back arrangement. The revenue and cost of goods sold arising from the above transactions are eliminated and the incremental amounts paid by Yuxin and Yuteng to purchase back the goods are treated as financing costs in the unaudited condensed consolidated financial statements. | ||||||||
Total financing sales for the three months ended September 30, 2013 and 2012 amounted to $166.2 million and $307.1 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $519.5 million and $600.8 million, respectively, which are eliminated in the Company’s unaudited condensed consolidated financial statements. The financial cost related to financing sales for the three months ended September 30, 2013 and 2012, accounted to $1.1 million and $2.1 million, respectively, and for the nine months ended September 30, 2013 and 2012, amounted to $4.2 million and $6.8 million, respectively. | ||||||||
Short term loans due to related parties | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Baotou Steel: Loans from Tianjin Hengying Trading Co., Ltd, due on demand, and interest rates is 10% per annum. | $ | 3,430 | $ | 4,133 | ||||
General Steel China: Loans from Tianjin Hengying Trading Co., Ltd., due on demand, and interest rates is 10% per annum. | - | 15,416 | ||||||
General Steel China: Loans from Tianjin Dazhan Industry Co, Ltd., due on demand, and interest rates is 10% per annum. | - | 21,397 | ||||||
General Steel China:Loans from Beijing Shenhua Xinyuan Metal Materials Co., Ltd., due on demand, and interest rates is 10% per annum. | 1,395 | 1,359 | ||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rates is 10% per annum. | 1,451 | 1,413 | ||||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due in December 2013, and interest rate is 7.0% per annum. | 33,580 | - | ||||||
Longmen Joint Venture: Loans from financing sales. | 9,033 | 35,839 | ||||||
Total short-term loans - related parties | $ | 48,889 | $ | 79,557 | ||||
Long-term loans due to related party | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due on various dates through November 2015 and interest rate are 5.6% - 5.9% per annum. | $ | 72,346 | $ | 92,973 | ||||
Less: Current maturities of long-term loans – related party | -47,896 | -54,885 | ||||||
Long-term loans - related party | $ | 24,450 | $ | 38,088 | ||||
Total interest expense, net of capitalized interest, amounted to $15.5 million and $36.6 million for the three months ended September 30, 2013 and 2012, respectively. | ||||||||
Total interest expense, net of capitalized interest, amounted to $54.5 million and $138.9 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
Capitalized interest amounted to $1.3 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively. | ||||||||
Capitalized interest amounted to $2.1 million and $0.6 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
Customer_deposits
Customer deposits | 9 Months Ended |
Sep. 30, 2013 | |
Deposits [Abstract] | ' |
Customer Deposits Disclosure [Text Block] | ' |
Note 10 – Customer deposits | |
Customer deposits represent amounts advanced by customers on product orders. The product normally is shipped within one month after receipt of the advance payment, and the related sale is recognized in accordance with the Company’s revenue recognition policy. As of September 30, 2013 and December 31, 2012, customer deposits amounted to $110.2 million and $147.9 million, respectively, including deposits received from related parties, which amounted to $14.5 million and $22.0 million, respectively. | |
Deposits_due_to_sales_represen
Deposits due to sales representatives | 9 Months Ended |
Sep. 30, 2013 | |
Deposits Due To Sales Representatives [Abstract] | ' |
Deposits Due To Sales Representatives [Text Block] | ' |
Note 11 – Deposits due to sales representatives | |
Longmen Joint Venture entered into agreements with various entities to act as the Company’s exclusive sales agent in a specified geographic area. These exclusive sales agents must meet certain criteria and are required to deposit a certain amount of money with the Company. In return the sales agents receive exclusive sales rights in a specified area and at discounted prices on products they order. These deposits bear no interest and are required to be returned to the sales agent once the agreement is terminated. The agreement is normally entered/or renewed on an annual basis. Termination of the agreement can be mutually agreed to by both parties at any time. The Company had $30.0 million and $35.1 million in deposits due to sales representatives, including deposits due to related parties, as of September 30, 2013 and December 31, 2012, respectively. | |
Convertible_notes_and_derivati
Convertible notes and derivative liabilities | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Convertible Notes and Derivative Liabilities [Text Block] | ' | ||||
Note 12 – Convertible notes and derivative liabilities | |||||
The Company had 3,900,871 outstanding warrants in connection with the $40 million convertible notes issued in 2007, which expired on May 13, 2013, and 2,777,778 warrants in connection with a registered direct offering in 2009, which expired on June 24, 2012. The aforementioned warrants met the definition of a derivative instrument in the accounting standards and are recorded at their fair value on each reporting date. The change in the value of the derivative liabilities is charged against or credited to income each period. | |||||
The fair value of the warrants as of December 31, 2012 was calculated using the Cox Rubenstein Binomial model based on the following variables: | |||||
31-Dec-12 | |||||
Expected volatility | 86 | % | |||
Expected dividend yield | 0 | % | |||
Risk-free interest rate | 0.08 | % | |||
Expected lives | 0.36 years | ||||
Market price | $ | 0.99 | |||
Strike price | $ | 5 | |||
As of September 30, 2013 and December 31, 2012, derivative liabilities, which were included in other payables and accrued liabilities in the consolidated balance sheets, amounted to $0 and $1.0 thousand, respectively. | |||||
The Company has the following warrants outstanding: | |||||
Outstanding as of December 31, 2011 | 6,678,649 | ||||
Granted | - | ||||
Forfeited / expired | -2,777,778 | ||||
Exercised | - | ||||
Outstanding as of December 31, 2012 | 3,900,871 | ||||
Granted | - | ||||
Forfeited / expired | -3,900,871 | ||||
Exercised | - | ||||
Outstanding as of September 30, 2013 | - | ||||
Supplemental_disclosure_of_cas
Supplemental disclosure of cash flow information | 9 Months Ended |
Sep. 30, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow Supplemental Disclosures [Text Block] | ' |
Note 13 - Supplemental disclosure of cash flow information | |
Interest paid, net of capitalized, amounted to $11.5 million and $20.2 million for the nine months ended September 30, 2013 and 2012, respectively. | |
The Company paid income tax amounted to $0.3 million and $0.1 million for the nine months ended September 30, 2013 and 2012, respectively. | |
During the nine months ended September 30, 2013, the Company had receivables of $1.0 million as a result of the disposal of equipment that has not been collected. | |
During the nine months ended September 30, 2013, the Company converted $1.0 million of equipment into inventory productions. | |
During the nine months ended September 30, 2013, the Company used $37.3 million inventory in plant and equipment constructions. | |
During the nine months ended September 30, 2013 and 2012, the Company offset $64.2 million and $0, respectively, accounts payable to related party as loan receivable – related party repayment. | |
During the nine months ended September 30, 2013 and 2012, the Company offset $119.9 million and $29.9 million, respectively, advance on inventory purchases and other receivables to related parties as short-term loan repayments. | |
During the nine months ended September 30, 2013, the Company reclassified $3.8 million refundable advances on inventory purchase – related parties to other receivables – related parties. | |
During the nine months ended September 30, 2013, the Company incurred $18.7 million accounts payable to be paid for constructions in process. | |
During the nine months ended September 30, 2013 and 2012, one of the Company’s unconsolidated entities declared dividend and the Company was entitled for the dividend amounted to $0.2 million and $0.1 million, respectively, which was not yet collected. | |
During the nine months ended September 30, 2012, the Company sold its 22.76% equity interest of Tongxing at the carrying value of $8.0 million to two individuals who are representatives from Long Steel Group, a related party. In connection with this transaction, the Company received a land use rights from Tongxing at carrying value for $3.6 million and settled with a payable in cash of $0.3 million that the Company has not been paid. In addition, the Company determined that dividend receivables of $0.9 million will be transferring to the two individuals and will not be collected from Tongxing after these transactions. | |
During the nine months ended September 30, 2012, the Company converted $48.0 million of our accounts payable and other payables from our related parties to short term loans upon the execution of the loan agreements. | |
Deferred_lease_income
Deferred lease income | 9 Months Ended |
Sep. 30, 2013 | |
Deferred Revenue [Abstract] | ' |
Deferred Revenue Disclosure [Text Block] | ' |
Note 14 - Deferred lease income | |
To compensate the Group for costs and economic losses incurred during construction of the iron and steel making facilities owned by Shaanxi Steel, Shaanxi Steel reimbursed Longmen Joint Venture $11.4 million (RMB 70.1 million) in the fourth quarter of 2010 for the value of assets dismantled and rent under a 40-year property sub-lease that was entered into by the parties in June 2009 (the "Longmen Sub-lease"), and $29.8 million (RMB 183.1 million) for the reduced production efficiency caused by the construction. In addition, in 2010 and 2011, Shaanxi Steel reimbursed Longmen Joint Venture $14.6 million (RMB 89.5 million) and $14.6 million (RMB 89.3 million), respectively, for trial production costs related to the new equipment. | |
During the period from June 2010 to March 2011, as construction progressed and certain of the assets came online, Longmen Joint Venture used the assets free of charge to produce saleable units of steel products during this period. As such, the cost of using these assets and therefore the fair value of the free rent received was imputed with reference to what the depreciation charge would have been on these assets had they been owned or under capital lease to Longmen Joint Venture during the free use period. This cost of $7.2 million (RMB 43.9 million) each year were deferred and will be recognized over the term of the land sub-lease similar to the other charges and credits related to the construction of these assets. | |
The deferred lease income is amortized to income over the remaining term of the 40-year land sub-lease. For the three months ended September 30, 2013 and 2012, the Company recognized $0.5 million in each period. For the nine months ended September 30, 2013 and 2012, the Company recognized $1.6 million in each period. As of September 30, 2013 and December 31, 2012, the balance of deferred lease income amounted to $77.7 million and $77.2 million, respectively, of which $2.2 million and $2.1 million represents balance to be amortized within one year. | |
Capital_lease_obligation
Capital lease obligation | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Leases, Capital [Abstract] | ' | ||||||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||||||||
Note 15 - Capital lease obligation | |||||||||||
On April 29, 2011, the Company’s subsidiary, Longmen Joint Venture entered into a Unified Management Agreement with Shaanxi Steel and Shaanxi Coal under which Longmen Joint Venture uses new iron and steel making facilities including one sintering machine, two converters, two blast furnaces and other auxiliary systems constructed by Shaanxi Steel. As the 20-year term of the agreement exceeds 75% of the assets’ useful lives, this arrangement is accounted for as a capital lease. The ongoing lease payments are comprised of two elements: (1) a monthly payment based on Shaanxi Steel’s cost to construct the assets of $2.3 million (RMB14.6 million) to be paid over the term of the Unified Management Agreement of 20 years and (2) 40% of any remaining pre-tax profits from the Asset Pool which includes Longmen Joint Venture and the newly constructed iron and steel making facilities. In October 2012, Shaanxi Steel agreed that it will not demand capital lease payment from Longmen Joint Venture until October 2014. The profit sharing component does not meet the definition of contingent rent because it is based on future revenue and is therefore considered part of the financing for the capital leased assets which is related to the Unified Management Agreement. For purposes of determining the value of the leased asset and obligation at the inception of the lease, the lease liability is then reduced by the value of the profit sharing component, which is recognized as a separate financial liability carried at fair value. See Note 16 – “Profit sharing liability”. | |||||||||||
Presented below is a schedule of estimated minimum lease payments on the capital lease obligation as well as payments for the profit sharing liability for the next five years as of September 30, 2013: | |||||||||||
Capital Lease Obligation | Capital Lease Obligation | ||||||||||
Year ending September 30, | Minimum Lease Payments | Profit (Loss) Sharing | Total | ||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||
2014 | $ | - | $ | - | $ | - | |||||
2015 | 126,557 | - | 126,557 | ||||||||
2016 | 28,654 | - | 28,654 | ||||||||
2017 | 28,654 | - | 28,654 | ||||||||
2018 | 28,654 | - | 28,654 | ||||||||
Thereafter | 360,567 | 650,586 | 1,011,153 | ||||||||
Total minimum lease payments | 573,086 | 650,586 | 1,223,672 | ||||||||
Less: amounts representing interest | -218,510 | -409,496 | -628,006 | ||||||||
Ending balance | $ | 354,576 | $ | 241,090 | $ | 595,666 | |||||
Longmen Joint Venture does not expect to make payments on the profit sharing payment until year 2022 when Longmen Joint Venture will start to generating accumulated profit after recovering from the previous years’ losses. | |||||||||||
Interest expense for the three months ended September 30, 2013 and 2012 on the minimum lease payments were $5.1 million and $5.1 million, respectively. | |||||||||||
Interest expense for the nine months ended September 30, 2013 and 2012 on the minimum lease payments were $15.3 million and $15.5 million, respectively. | |||||||||||
Interest expense for the three months ended September 30, 2013 and 2012 on the profit sharing liability were $2.6 million and $5.6 million, respectively. | |||||||||||
Interest expense for the nine months ended September 30, 2013 and 2012 on the profit sharing liability were $12.4 million and $16.9 million, respectively. | |||||||||||
Profit_sharing_liability
Profit sharing liability | 9 Months Ended |
Sep. 30, 2013 | |
Profit Sharing Liability [Abstract] | ' |
Profit Sharing Liability [Text Block] | ' |
Note 16 –Profit sharing liability | |
The profit sharing liability is recognized initially at its estimated fair value at the lease commencement date and included in the initial measurement and recognition of the capital lease in addition to the fixed payment component of the minimum lease payments. Subsequently, this financial instrument is accounted for separately from the lease accounting (Note 15 - “Capital lease obligation”). The initial fair value of the expected payments under the profit sharing component of the Unified Management Agreement is amortized over the term of the agreement using the effective interest method. The value of the profit sharing liability will be reassessed each reporting period with any change in fair value accounted for on a prospective basis. Refer to Note 2(h) – “Financial instruments” for details. | |
Based on the performance of the Asset Pool, no profit sharing payment, which is not required until net cumulative profits are achieved, was made for the nine months ended September 30, 2013 and 2012. Payments to Shaanxi Steel for the profit sharing are made based on net cumulative profits. | |
Other_income_expense
Other income (expense) | 9 Months Ended |
Sep. 30, 2013 | |
Other Income and Expenses [Abstract] | ' |
Other Income and Other Expense Disclosure [Text Block] | ' |
Note 17 – Other income (expense) | |
Lease income | |
The deferred lease income from the reimbursement from Shaanxi Steel for the net book value of the fixed assets that were demolished and for the inefficiency costs caused by the construction and loss incurred in the beginning stages of the system production is amortized to income over the remaining sub-lease term. For the three months ended September 30, 2013 and 2012, the Company recognized lease income of $0.5 million and $0.5 million, and for the nine months ended September 30, 2013 and 2012, amounted to $1.6 million and $1.6 million, respectively. | |
Taxes
Taxes | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
Note 18 – Taxes | ||||||||
Income tax | ||||||||
Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended September 30, 2013 and 2012 are as follows: | ||||||||
For the three months ended | For the three months ended | |||||||
(In thousands) | September 30, 2013 | September 30, 2012 | ||||||
Current | $ | 25 | $ | 100 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 25 | $ | 100 | ||||
For the nine months ended | For the nine months ended | |||||||
(In thousands) | September 30, 2013 | September 30, 2012 | ||||||
Current | $ | 201 | $ | 510 | ||||
Deferred | - | 169 | ||||||
Total provision (benefit) for income taxes | $ | 201 | $ | 679 | ||||
Under the Income Tax Laws of the PRC, General Steel (China), Baotou Steel Pipe Joint Venture (located in Inner Mongolia province), Maoming Hengda (located in Guangdong province) and Tianwu Joint Venture (located in Tianjin Port Free Trade Zone) are subject to income tax at a rate of 25%. | ||||||||
Longmen Joint Venture is located in the Mid-West region of China and as such, qualifies for the “Go-West” tax rate of 15% promulgated by the government. In 2010, the Chinese government announced that the “Go-West” tax initiative would be extended for 10 years, and thus, the preferential tax rate of 15% will be in effect until 2020. This special tax treatment for Longmen Joint Venture will be evaluated on a year-to-year basis by the local tax bureau. | ||||||||
Deferred taxes assets – China | ||||||||
According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for the next five years. The Group’s losses carried forward of $436.9 million will begin to expire in 2014. The Chinese government recently announced several policies to curb the real estate price increases across the country which led to a slowdown in demand for construction steel products. Additionally due to the continued global economic slowdown and the overcapacity issues in China's steel market, management expected there would be a sustained increase in margin pressure in the next five years until all the existing but outdated steel capacity across the whole industry are eliminated. Management took into consideration this potential negative impact on average selling price and gross margin of its products, re-performed an operating forecast for the next five years and concluded that the beginning-of-the-year balance of deferred tax assets mainly relating to the net operating loss carry forward may not be fully realizable due to the reduction in the projection of income to be available in the next 5 years. Management therefore decided to provide 100% valuation allowance for the deferred tax assets. The valuation allowance as of September 30, 2013 and December 31, 2012 was $86.9 million and $72.9 million, respectively. Management will review this valuation allowance periodically and make adjustments as warranted. Temporary differences, representing tax and book differences in various items, such as receivable allowances, inventory allowances, impairments on fixed assets and deferred lease income. | ||||||||
Movement of valuation allowance: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 72,891 | $ | 47,703 | ||||
Current period addition | 12,776 | 25,180 | ||||||
Current period reversal | -857 | - | ||||||
Deconsolidation of Tongxing | - | -216 | ||||||
Exchange difference | 2,125 | 224 | ||||||
Ending balance | $ | 86,935 | $ | 72,891 | ||||
Deferred taxes assets – U.S. | ||||||||
General Steel Holdings, Inc. was incorporated in the United States and has incurred net operating losses for income tax purposes for the nine months ended September 30, 2013. The net operating loss carry forwards for United States income taxes amounted to $1.6 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2026 through 2032. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset benefit to reduce the asset to zero. The valuation allowance as of September 30, 2013 was $0.5 million. The net change in the valuation allowance for the nine months ended September 30, 2013 was $0. Management will review this valuation allowance periodically and make adjustments as warranted. | ||||||||
The Company has cumulative proportionate retained earnings from profitable subsidiaries of approximately $0.1 million as of September 30, 2013. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted in the future. | ||||||||
Value added tax | ||||||||
Enterprises or individuals who sell commodities, engage in repair and maintenance or import and export goods in the PRC are subject to a value added tax in accordance with PRC laws. The value added tax (“VAT”) standard rates are 13% to 17% of the gross sales price. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on sales of the finished product. As of September 30, 2013 and December 31, 2012, the Company had $3.1 million and $4.2 million in value added tax credit which are available to offset future VAT payables, respectively. | ||||||||
Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government for VAT collection. VAT on sales and VAT on purchases amounted to $160.5 million and $156.2 million, respectively, for the three months ended September 30, 2013 and $209.7 million and $206.7 million, respectively, for the three months ended September 30, 2012. VAT on sales and VAT on purchases amounted to $513.7 million and $494.4 million, respectively, for the nine months ended September 30, 2013, $620.6 million and $594.1 million, respectively, for the nine months ended September 30, 2012. | ||||||||
Taxes payable consisted of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 7,309 | $ | 13,579 | ||||
Income taxes payable | 20 | 68 | ||||||
Misc. taxes | 2,387 | 3,027 | ||||||
Totals | $ | 9,716 | $ | 16,674 | ||||
Earnings_Loss_per_share
Earnings (Loss) per share | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
Note 19 – Earnings (Loss) per share | ||||||||
The computation of earnings (loss) per share is as follows: | ||||||||
(in thousands, except per share data) | ||||||||
For the three | For the three | |||||||
months ended | months ended | |||||||
September 30, 2013 | September 30, 2012 | |||||||
Income (loss) attributable to holders of common stock | $ | 3,801 | $ | -41,598 | ||||
Basic and diluted weighted average number of common shares outstanding | 55,141 | 54,466 | ||||||
Earnings (loss) per share | ||||||||
Basic and diluted | $ | 0.07 | $ | -0.76 | ||||
For the nine | For the nine | |||||||
months ended | months ended | |||||||
September 30, 2013 | September 30, 2012 | |||||||
Loss attributable to holders of common stock | $ | -32,914 | $ | -102,759 | ||||
Basic and diluted weighted average number of common shares outstanding | 54,976 | 54,946 | ||||||
Loss per share | ||||||||
Basic and diluted | $ | -0.6 | $ | -1.87 | ||||
The Company had warrants exercisable for 3,900,871 shares of the Company’s common stock at September 30, 2012. For the three and nine months ended September 30, 2012, all outstanding warrants were excluded from the diluted earnings per share calculation since they are anti-dilutive. | ||||||||
Other than the aforementioned potentially dilutive securities, there were no other potentially dilutive securities outstanding for the three and nine months ended September 30, 2013 and 2012. | ||||||||
Related_party_transactions_and
Related party transactions and balances | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||||
Note 20 – Related party transactions and balances | ||||||||||
Related party transactions | ||||||||||
a. | Capital lease | |||||||||
As disclosed in Notes 15 – “Capital lease obligations”, Longmen Joint Venture entered into a capital lease arrangement on April 29, 2011, with Shaanxi Coal and Shaanxi Steel, which are related parties of the Group. The following is an analysis of the leased assets under the capital lease: | ||||||||||
September 30, 2013 | December 31, 2012 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 603,248 | $ | 587,334 | ||||||
Less: accumulated depreciation | -69,248 | -46,497 | ||||||||
Carrying value of leased assets | $ | 534,000 | $ | 540,837 | ||||||
b. On January 1, 2010, General Steel (China), entered into a lease agreement with Tianjin Daqiuzhuang Steel Plates Co., Ltd. (the “Lessee”), whereby General Steel (China) leases its facility located at No. 1, Tonga Street, Daqiuzhuang Town, Jinghai County, Tianjin City to the Lessee (the “Lease Agreement”). The Lease Agreement provides approximately 776,078 square feet of workshops, land, equipment and other facilities amounting to RMB 215.8 million ($34.4 million) to the Lessee and allows the Company to reduce overhead costs while providing a recurring monthly income stream resulting from payments due under the lease. The term of the Lease Agreement was from January 1, 2010 to December 31, 2011 and the monthly base rental rate due to General Steel (China) was approximately $0.2 million (RMB 1.7 million). On July 28, 2011, General Steel (China) (lessor) signed a supplemental agreement with the lessee to extend the lease for an additional five years to December 31, 2016. However, due to current steel market conditions, the lessee informed the Company that they did not intend to extend the lease at June 30, 2012 and has terminated the supplemental agreement early. There was no penalty for early termination. The Company assessed the recoverability of all of its remaining long lived assets at September 30, 2013 and such assessment did not result in any other impairment charges for the three and nine months ended September 30, 2013. | ||||||||||
For the three months ended September 30, 2013 and 2012, General Steel (China) did not realize any rental income the related party, and for the nine months ended September 30, 2013 and 2012, General Steel (China) realized rental income $0 million and $1.6 million, respectively, which has been included in “other non-operating income (expense), net” in the unaudited condensed consolidated statements of operations and comprehensive income (loss). | ||||||||||
c. The following chart summarized sales to related parties for the three and nine months ended September 30, 2013 and 2012. | ||||||||||
Three months ended | Three months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 63,793 | $ | 123,631 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group** | - | 16,998 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 1,081 | - | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 85 | 12,480 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 19,866 | 7,599 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 979 | 25 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 9 | 11,392 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 1,782 | 20,758 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 7,951 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | - | |||||||
Total | $ | 95,546 | $ | 192,883 | ||||||
**Long Steel Group has the ability to significantly influence the operating and financial decisions of the entity through equity ownership either directly or through key employees, commercial contractual terms, or the ability to assign management personnel. | ||||||||||
Nine months ended | Nine months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 226,754 | $ | 360,820 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | 72 | 147,847 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 21,491 | 41,433 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 15,681 | 43,015 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 56,545 | 34,132 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 2,390 | 634 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 2,122 | 31,485 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 33,075 | 37,965 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 22,577 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | 1,493 | |||||||
Total | $ | 380,707 | $ | 698,824 | ||||||
d. The following charts summarize purchases from related parties for the three and nine months ended September 30, 2013 and 2012. | ||||||||||
Three months ended | Three months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 101,606 | $ | 123,637 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 31,331 | 47,487 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 1,181 | 16,674 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 1,568 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 1 | 2,257 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 10,529 | 10,322 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 1,726 | 1,049 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 64 | 91 | |||||||
Total | $ | 146,438 | $ | 203,085 | ||||||
Nine months ended | Nine months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 376,104 | $ | 453,947 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 148,322 | 195,861 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 13,678 | 83,251 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 53 | 5,332 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 212 | 4,417 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 28,618 | 24,347 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 6,635 | 3,653 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 300 | 305 | |||||||
Total | $ | 573,922 | $ | 771,113 | ||||||
Related party balances | ||||||||||
a. | Loans receivable – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | - | $ | 63,319 | |||||
Teamlink Investment Co., Ltd | Partially owned by CEO* through indirect shareholding | 4,540 | 6,000 | |||||||
Total | $ | 4,540 | $ | 69,319 | ||||||
*The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | ||||||||||
See Note 3 – loans receivable – related parties for loan details. | ||||||||||
b. | Accounts receivables – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,834 | $ | 10,409 | |||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 2,017 | |||||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 18 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,227 | 2,435 | |||||||
Others | 172 | 87 | ||||||||
Total | $ | 3,252 | $ | 14,966 | ||||||
c. | Other receivables – related parties: | |||||||||
Other receivables - related parties are those nontrade receivables arising from transactions between the Company and its related parties, such as advances or payments made on behalf of these related parties. | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 561 | $ | 301 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 44,811 | 65,981 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 1,228 | 1,195 | |||||||
Tianjin Dazhan Industry Co, Ltd | Partially owned by CEO through indirect shareholding | 489 | 476 | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 3,834 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 578 | 429 | |||||||
Total | $ | 51,501 | $ | 68,382 | ||||||
d. | Advances on inventory purchase – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,377 | $ | 1,367 | |||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 6,254 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 12,805 | - | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 9,210 | 41,316 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 3,733 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 21 | - | |||||||
Total | $ | 29,667 | $ | 46,416 | ||||||
e. | Accounts payable - related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 60,463 | $ | 58,661 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 100,579 | 91,511 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | - | 5,652 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 954 | 3 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 7,838 | 5,278 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 1 | 13,919 | |||||||
Henan Xinmi Kanghua Fire Refractory Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 722 | 1,146 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 1,149 | 875 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | - | 52 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 553 | 335 | |||||||
Total | $ | 172,259 | $ | 177,432 | ||||||
f. | Short-term loans - related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | - | $ | 35,839 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 33,580 | - | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 1,547 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 10,916 | 19,549 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | - | 21,397 | |||||||
Beijing Shenhua Xinyuan Metal Materials Co., Ltd | Partially owned by CEO through indirect shareholding | 1,395 | 1,359 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 1,451 | 1,413 | |||||||
Total | $ | 48,889 | $ | 79,557 | ||||||
See Note 9 – Debt for the loan details. | ||||||||||
g. | Current maturities of long-term loans – related parties | |||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 47,896 | $ | 54,885 | |||||
Total | $ | 47,896 | $ | 54,885 | ||||||
h. | Other payables – related parties: | |||||||||
Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the Group. | ||||||||||
September 30, | December 31, | |||||||||
Name of related parties | Relationship | 2013 | 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 876 | $ | 2,770 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 51,919 | 60,180 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 44,173 | - | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 911 | 836 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 254 | 141 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | - | 4,761 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 4,020 | 3,695 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 1,566 | - | |||||||
Victory Energy Resource Co., Ltd | Partially owned by CEO through indirect shareholding | 1,375 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 1,059 | 642 | |||||||
Total | $ | 106,153 | $ | 73,025 | ||||||
i. | Customer deposits – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | $ | 10 | $ | 4,869 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | - | 2,163 | |||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | - | 90 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 13,600 | 8,864 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 679 | 5,615 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | - | 353 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 223 | 44 | |||||||
Total | $ | 14,512 | $ | 21,998 | ||||||
j. | Deposits due to sales representatives – related parties | |||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | $ | 587 | $ | 619 | |||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 635 | 619 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 587 | - | |||||||
Total | $ | 1,809 | $ | 1,238 | ||||||
k. | Long-term loans – related party: | |||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 24,450 | $ | 38,088 | |||||
Total | $ | 24,450 | $ | 38,088 | ||||||
The Company also provided guarantee on related parties’ bank loans amounting to $139.9 million and $118.0 million as of September 30, 2013 and as of December 31, 2012, respectively. | ||||||||||
l. | Long-term other payable – related party: | |||||||||
Long-term other payable – related party is a nontrade payable arising from a transaction between the Company and its related party, Shaanxi Steel, in which the Company received an advance from Shaanxi Steel to make payment to a third party for a construction project. | ||||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | - | $ | 43,008 | |||||
Total | $ | - | $ | 43,008 | ||||||
m. | Deferred lease income | |||||||||
September 30, 2013 | December 31, 2012 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 77,199 | $ | 78,524 | ||||||
Less: Lease income realized | -1,613 | -2,119 | ||||||||
Exchange rate effect | 2,072 | 794 | ||||||||
Ending balance | 77,658 | 77,199 | ||||||||
Current portion | -2,178 | -2,120 | ||||||||
Noncurrent portion | $ | 75,480 | $ | 75,079 | ||||||
For the three months ended September 30, 2013 and 2012, the Company realized lease income from Shaanxi Steel, a related party, amounted to $0.5 million and $0.5 million, respectively. | ||||||||||
For the nine months ended September 30, 2013 and 2012, the Company realized lease income from Shaanxi Steel, a related party, amounted to $1.6 million and $1.6 million, respectively. | ||||||||||
Equity
Equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
Note 21 - Equity | |
2013 Equity Transactions | |
On March 28, 2013, the Company granted senior management and directors 174,900 shares of common stock at $1.01 per share, as compensation under the Company’s 2008 Equity Incentive Plan. The shares were valued at the quoted market price on the grant date. | |
On June 27, 2013, the Company granted senior management and directors 163,150 shares of common stock at $1.02 per share, as compensation under the Company’s 2008 Equity Incentive Plan. The shares were valued at the quoted market price on the grant date. | |
On August 16, 2013, an additional $45.1 million (or RMB 280 million) was contributed to Tianwu Joint Venture with $27.0 million (or RMB 168 million) contributed by the Company and $18.0 million (or RMB 112 million) contributed by Tianjin Material and Equipment Group Corporation (“TME Group”). The Company’s controlling interest of Tianwu Joint Venture remains at 60% after the capital contribution. | |
On September 28, the Company granted senior management and directors 163,150 shares of common stock at $0.88 per share as compensation under the Company’s 2008 Equity Incentive Plan. The shares were valued at the quoted market price on the grant date. | |
Retirement_plan
Retirement plan | 9 Months Ended |
Sep. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
Note 22 – Retirement plan | |
Regulations in the PRC require the Company to contribute to a defined contribution retirement plan for all employees. All the employees of the Company’s entities in China are entitled to a retirement pension amount calculated based upon their salary at their date of retirement and their length of service in accordance with a government managed pension plan. The PRC government is responsible for the pension liability to the retired staff. The Company’s entities in China are required to contribute based on the higher of 20% of the employees’ monthly base salary or 12% of the minimum social average salary of the city where the facilities are located. Employees are required to contribute 8% of their base salary to the plan. The minimum social average salary is announced by the local Social Security bureau and updated annually. Total pension expense incurred by the Company was $2.3 million and $1.7 million for the three months ended September 30, 2013 and 2012, respectively, and for the nine months ended September 30, 2013 and 2012 amounted to $6.4 million and $5.5 million, respectively. | |
Statutory_reserves
Statutory reserves | 9 Months Ended |
Sep. 30, 2013 | |
Statutory Reserves [Abstract] | ' |
Statutory Reserves [Text Block] | ' |
Note 23 – Statutory reserves | |
The laws and regulations of the People’s Republic of China require that before a foreign -invested enterprise distributes profits to its shareholders, it must first satisfy all tax liabilities, provision for losses in previous years, and make allocations, in proportions determined at the discretion of the board of directors, to the statutory reserves. The statutory reserves include the surplus reserve funds and the enterprise fund and these statutory reserves represent restricted retained earnings. | |
Surplus reserve fund | |
The Company is required to transfer 10% of its net income, as determined in accordance with the PRC accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the Company’s registered capital. | |
The transfer to this reserve must be made before distribution of any dividend to shareholders. The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. For the periods ended September 30, 2013 and 2012, the Company did not make any contributions to these reserves. | |
Special reserve | |
The Company is required by the PRC government to reserve safety and maintenance expense to the cost of production based on the actual quantity of mineral exploited. The amount of reserves is determined within the unit price range provided by Ministry of Finance of PRC. For the nine months ended September 30, 2013 and 2012, the Company made contributions of $0.7 million and $0.9 million to these reserves, respectively and used $0.4 million and $0.9 million of safety and maintenance expense, respectively. | |
Commitment_and_contingencies
Commitment and contingencies | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||
Note 24 – Commitment and contingencies | |||||||
Operating Lease Commitments | |||||||
Total operating lease commitments for rental of offices, buildings, equipment and land use rights of the Company’s PRC subsidiaries as of September 30, 2013 is as follows: | |||||||
Year ending September 30, | Minimum lease payment | ||||||
(in thousands) | |||||||
(Unaudited) | |||||||
2014 | $ | 1,445 | |||||
2015 | 680 | ||||||
2016 | 559 | ||||||
2017 | 559 | ||||||
2018 | 559 | ||||||
Years after | 20,185 | ||||||
Total minimum payments required | $ | 23,987 | |||||
Total rental expense was $0.8 million and $0.8 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
Contractual Commitments | |||||||
Longmen Joint Venture has $211.6 million contractual obligations related to construction projects as of September 30, 2013 estimated to be fulfilled between November 2013 and September 2014. | |||||||
Contingencies | |||||||
As of September 30, 2013, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $304.6 million. | |||||||
Guarantee | |||||||
Nature of guarantee | amount | Guaranty Due Date | |||||
(In thousands) | |||||||
Line of credit | $ | 178,931 | Various from October 2013 to August 2015 | ||||
Three-party financing agreements | 42,315 | Various from October 2013 to January 2014 | |||||
Confirming storage | 19,951 | Various from December 2013 to September 2014 | |||||
Financing by the rights of goods delivery in future | 63,374 | Various from December 2013 to March 2015 | |||||
Total | $ | 304,571 | |||||
Guarantee | |||||||
Name of parties being guaranteed | amount | Guaranty Due Date | |||||
(In thousands) | |||||||
Long Steel Group | $ | 74,819 | Various from October 2013 to August 2015 | ||||
Hancheng Haiyan Coking Co., Ltd | 42,315 | Various from October 2013 to January 2014 | |||||
Long Steel Group Fuping Rolling Steel Co., Ltd | 11,271 | Various from January to June 2014 | |||||
Yichang Zhongyi Industrial Co., Ltd | 25,428 | Jun-14 | |||||
Xi’an Laisheng Logistics Co., Ltd | 4,303 | May-14 | |||||
Xi'an Kaiyuan Steel Sales Co., Ltd | 3,733 | Various from November 2013 to January 2014 | |||||
Shaanxi Hongan Material Co., Ltd. | 5,379 | Various from October to December 2013 | |||||
Shaanxi Anlin Logistics Co., Ltd | 7,726 | Various from December 2013 to April 2014 | |||||
Chengdu Zhongyi Steel Co., Ltd | 3,977 | Dec-13 | |||||
Shaanxi Huatai Huineng Group Co., Ltd | 24,450 | Mar-14 | |||||
Hancheng Sanli Furnace Burden Co., Ltd. | 16,300 | Mar-15 | |||||
Tianjin Dazhan Industry Co., Ltd | 44,238 | Various from January 2014 to March 2015 | |||||
Tianjin Hengying Trading Co., Ltd | 19,637 | Various from January to July 2014 | |||||
Tianjin Qiu Steel Pipe Industry Co., Ltd | 11,410 | Apr-14 | |||||
Jinmen Desheng Metallurty Co., Ltd | 3,260 | Aug-14 | |||||
Shaanxi Baolong Industry Co., Ltd | 2,347 | Nov-13 | |||||
Shaanxi Longan Industrial Development Co., Ltd | 3,978 | Nov-13 | |||||
Total | $ | 304,571 | |||||
As of September 30, 2013, the Company did not accrue any liability for the amounts the Group has guaranteed for third and related parties because those parties are current in their payment obligations and the Company has not experienced any losses from providing guarantees. The Company has evaluated the debt guarantees and concluded that the likelihood of having to make payments under the guarantees is remote and that the fair value of the stand-ready obligation under these commitments is not material. | |||||||
Segments
Segments | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
Note 25 – Segments | ||||||||
The Company’s chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being income from operations of the Group’s four regional divisions in the PRC: Longmen Joint Venture in Shaanxi province, Maoming Hengda in Guangdong province, Baotou Steel Pipe Joint Venture in Inner Mongolia province and General Steel (China) & Tianwu Joint Venture in Tianjin City. | ||||||||
The Group operates in one business segment that includes four different divisions. These reportable divisions are consistent with the way the Company manages its business, each division operates under separate management groups and produces discrete financial information. The accounting principles applied at the operating division level in determining income from operations is generally the same as those applied at the consolidated financial statement level. | ||||||||
The following represents results of division operations for three months ended September 30, 2013 and 2012: | ||||||||
(In thousands) | ||||||||
Sales: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 606,444 | $ | 708,974 | ||||
Maoming Hengda | 252 | 1,134 | ||||||
Baotou Steel Pipe Joint Venture | 2,921 | 1,322 | ||||||
General Steel (China) & Tianwu Joint Venture | 4,236 | 129,341 | ||||||
Total sales | 613,853 | 840,771 | ||||||
Interdivision sales | -3,758 | -129,346 | ||||||
Consolidated sales | $ | 610,095 | $ | 711,425 | ||||
Gross profit (loss): | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 8,122 | $ | -18,417 | ||||
Maoming Hengda | -57 | -761 | ||||||
Baotou Steel | 160 | 120 | ||||||
General Steel (China) & Tianwu Joint Venture | 6 | 5,462 | ||||||
Total gross profit (loss) | 8,231 | -13,596 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 8,231 | $ | -13,596 | ||||
Income (loss) from operations: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 32,967 | $ | -37,000 | ||||
Maoming Hengda | -719 | -1,062 | ||||||
Baotou Steel | 20 | 630 | ||||||
General Steel (China) & Tianwu Joint Venture | -695 | 2,399 | ||||||
Total income (loss) from operations | 31,572 | -35,033 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -1,177 | -1,350 | ||||||
Consolidated income (loss) from operations | $ | 30,395 | $ | -36,383 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 8,284 | $ | -39,494 | ||||
Maoming Hengda | -694 | -1,073 | ||||||
Baotou Steel | 16 | 403 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,689 | -26 | ||||||
Total net income (loss) attributable to General Steel Holdings, Inc. | 4,917 | -40,190 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -1,116 | -1,408 | ||||||
Consolidated net income (loss) attributable to General Steel Holdings, Inc. | $ | 3,801 | $ | -41,598 | ||||
Depreciation, amortization and depletion: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 21,014 | $ | 19,915 | ||||
Maoming Hengda | 307 | 451 | ||||||
Baotou Steel | 62 | 52 | ||||||
General Steel (China) & Tianwu Joint Venture | 505 | 790 | ||||||
Consolidated depreciation, amortization and depletion | $ | 21,888 | $ | 21,208 | ||||
Finance/interest expenses: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 23,252 | $ | 33,989 | ||||
Maoming Hengda | 1 | 35 | ||||||
Baotou Steel | - | 127 | ||||||
General Steel (China) & Tianwu Joint Venture | 2,249 | 2,467 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 1 | -3 | ||||||
Consolidated interest expenses | $ | 25,503 | $ | 36,615 | ||||
Capital expenditures: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 16,455 | $ | 3,259 | ||||
Maoming Hengda | - | 23 | ||||||
Baotou Steel | - | 1 | ||||||
General Steel (China) & Tianwu Joint Venture | - | 15 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 16,455 | $ | 3,298 | ||||
The following represents results of division operations for nine months ended September 30, 2013 and 2012: | ||||||||
(In thousands) | ||||||||
Sales: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 1,903,933 | $ | 2,126,556 | ||||
Maoming Hengda | 3,124 | 4,003 | ||||||
Baotou Steel Pipe Joint Venture | 3,902 | 3,923 | ||||||
General Steel (China) & Tianwu Joint Venture | 58,416 | 141,668 | ||||||
Total sales | 1,969,375 | 2,276,150 | ||||||
Interdivision sales | -54,338 | -136,001 | ||||||
Consolidated sales | $ | 1,915,037 | $ | 2,140,149 | ||||
Gross profit (loss): | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | -23,704 | $ | 12,628 | ||||
Maoming Hengda | 188 | -1,174 | ||||||
Baotou Steel | 249 | 193 | ||||||
General Steel (China) & Tianwu Joint Venture | 29 | 8,431 | ||||||
Total gross profit (loss) | -23,238 | 20,078 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | -23,238 | $ | 20,078 | ||||
Income (loss) from operations: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 32,998 | $ | -40,071 | ||||
Maoming Hengda | -1,741 | -2,498 | ||||||
Baotou Steel | -285 | 224 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,293 | 4,878 | ||||||
Total income (loss) from operations | 28,679 | -37,467 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -3,504 | -4,003 | ||||||
Consolidated income (loss) from operations | $ | 25,175 | $ | -41,470 | ||||
Net loss attributable to General Steel Holdings, Inc.: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | -18,335 | $ | -92,974 | ||||
Maoming Hengda | -1,681 | -2,393 | ||||||
Baotou Steel | -227 | -263 | ||||||
General Steel (China) & Tianwu Joint Venture | -9,373 | -3,079 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -29,616 | -98,709 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -3,298 | -4,050 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -32,914 | $ | -102,759 | ||||
Depreciation, amortization and depletion: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 62,295 | $ | 58,573 | ||||
Maoming Hengda | 933 | 1,447 | ||||||
Baotou Steel | 185 | 134 | ||||||
General Steel (China) & Tianwu Joint Venture | 1,542 | 2,384 | ||||||
Consolidated depreciation, amortization and depletion | $ | 64,955 | $ | 62,538 | ||||
Finance/interest expenses: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 73,424 | $ | 129,683 | ||||
Maoming Hengda | 1 | 47 | ||||||
Baotou Steel | - | 381 | ||||||
General Steel (China) & Tianwu Joint Venture | 7,927 | 8,819 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 3 | -1 | ||||||
Consolidated interest expenses | $ | 81,355 | $ | 138,929 | ||||
Capital expenditures: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 60,461 | $ | 19,604 | ||||
Maoming Hengda | 2 | 38 | ||||||
Baotou Steel | 8 | 6 | ||||||
General Steel (China) & Tianwu Joint Venture | 3 | 18 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 60,474 | $ | 19,666 | ||||
Total Assets as of: | September 30, 2013 | December 31, 2012 | ||||||
Longmen Joint Venture | $ | 2,537,952 | $ | 2,513,206 | ||||
Maoming Hengda | 29,340 | 29,687 | ||||||
Baotou Steel Pipe Joint Venture | 5,116 | 5,186 | ||||||
General Steel (China) & Tianwu Joint Venture | 178,844 | 152,965 | ||||||
Interdivision assets | -84,880 | -57,436 | ||||||
Reconciling item (2) | 5,654 | 7,074 | ||||||
Total Assets | $ | 2,672,026 | $ | 2,650,682 | ||||
-1 | Reconciling item represents the unallocated income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three and nine months ended September 30, 2013 and 2012. | |||||||
-2 | Reconciling item represents assets held at General Steel Holdings, Inc., General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel as of September 30, 2013 and December 31, 2012. | |||||||
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||||||||||
(a) | Basis of presentation | ||||||||||||||||
The unaudited condensed consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | |||||||||||||||||
Percentage | |||||||||||||||||
Subsidiary | of Ownership | ||||||||||||||||
General Steel Investment Co., Ltd. | British Virgin Islands | 100 | % | ||||||||||||||
General Steel (China) Co., Ltd. (“General Steel (China)”) | PRC | 100 | % | ||||||||||||||
Baotou Steel – General Steel Special Steel Pipe Joint Venture Co., Ltd. | PRC | 80 | % | ||||||||||||||
Yangpu Shengtong Investment Co., Ltd. | PRC | 99.1 | % | ||||||||||||||
Tianjin Qiu Steel Investment Co., Ltd. (“Qiu Steel”) | PRC | 98.7 | % | ||||||||||||||
Longmen Joint Venture | PRC | VIE/60.0 | % | ||||||||||||||
Maoming Hengda Steel Company, Ltd. (“Maoming Hengda”) | PRC | 99 | % | ||||||||||||||
Tianwu General Steel Material Trading Co., Ltd (“Tianwu Joint Venture”) | PRC | 60 | % | ||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||||||||
(b) | Principles of consolidation – subsidiaries | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, its variable interest entity (“VIE”) for which the Company is the ultimate primary beneficiary, and the VIE’s subsidiaries. | |||||||||||||||||
Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. | |||||||||||||||||
A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. | |||||||||||||||||
All significant inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' | ||||||||||||||||
(c) | Consolidation of VIE | ||||||||||||||||
Prior to entering into the Unified Management Agreement on April 29, 2011, Longmen Joint Venture had been consolidated as the Company’s 60% direct owned subsidiary. Upon entering into the Unified Management Agreement on April 29, 2011, Longmen Joint Venture was re-evaluated by the Company to determine if Longmen Joint Venture is a VIE and if the Company is the primary beneficiary. | |||||||||||||||||
Based on projected profits in this entity and future operating plans, Longmen Joint Venture ’s equity at risk is considered insufficient to finance its activities and therefore Longmen Joint Venture is considered to be a VIE. | |||||||||||||||||
The Company would be considered the primary beneficiary of the VIE if it has both of the following characteristics: | |||||||||||||||||
a. | The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and | ||||||||||||||||
b. | The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||||||||||||
A Supervisory Committee was formed during the negotiation of the Unified Management Agreement. Given there is both a Supervisory Committee and a Board with respect to Longmen Joint Venture , the powers (rights and roles) of both bodies were considered to determine which party has the power to direct the activities of Longmen Joint Venture , and by extension, whether the Company continues to have the power to direct Longmen Joint Venture ’s activities after this Supervisory Committee was formed and the significant investment in plant and equipment by owners of the Longmen Joint Venture partner, as discussed in Note 1- “Background”. The Supervisory Committee, which the Company holds 2 out of 4 seats, requires a ¾ majority vote, while the Board, which the Company holds 4 out of 7 seats, requires a simple majority vote. As the Supervisory Committee’s role is limited to supervising and monitoring management of Longmen Joint Venture and in the event there is any disagreement between the Board and the Supervisory Committee, the Board prevails, the Supervisory Committee is considered subordinate to the Board. Thus, the Board of Directors of Longmen Joint Venture continues to be the controlling decision-making body with respect to Longmen Joint Venture. The Company, which controls 60% of the voting rights of the Board of Directors, has control over the operations of Longmen Joint Venture and as such, has the power to direct the activities of the VIE that most significantly impact Longmen Joint Venture ’s economic performance. | |||||||||||||||||
In connection with the Unified Management Agreement, the Company, Shaanxi Coal and Shaanxi Steel may provide such support on a discretionary basis or as needed in the future. See Note 2 item (d) Liquidity. | |||||||||||||||||
The Company has the obligation to absorb losses and the rights to receive benefits based on the profit allocation as stipulated by the Unified Management Agreement that are significant to the VIE. As both conditions are met, the Company is the primary beneficiary of Longmen Joint Venture and therefore, continues to consolidate Longmen Joint Venture as a VIE. | |||||||||||||||||
The Company believes that the Unified Management Agreement between Longmen Joint Venture and Shaanxi Coal is in compliance with PRC law and is legally enforceable. The Board of Directors of Longmen Joint Venture continues to be the controlling decision-making body with respect to Longmen Joint Venture. The Company, which controls 60% of the voting rights of the Board of Directors, has control over the operations of Longmen Joint Venture and as such, has the power to direct the activities of the VIE. However, PRC law and/or uncertainties in the PRC legal system could limit the Company’s ability to enforce the Unified Management Agreement, which in turn, may lead to reconsideration of the VIE assessment and the potential for a different conclusion. The Company makes ongoing assessment to determine whether Longmen Joint Venture is a VIE. | |||||||||||||||||
The carrying amount of the VIE and its subsidiaries’ consolidated assets and liabilities are as follows: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 1,253,672 | $ | 1,285,967 | |||||||||||||
Plant and equipment, net | 1,239,805 | 1,154,811 | |||||||||||||||
Other noncurrent assets | 44,475 | 72,428 | |||||||||||||||
Total assets | 2,537,952 | 2,513,206 | |||||||||||||||
Total liabilities | -3,006,938 | -2,943,761 | |||||||||||||||
Net liabilities | $ | -468,986 | $ | -430,555 | |||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 950,498 | $ | 971,117 | |||||||||||||
Accounts payable | 466,631 | 324,563 | |||||||||||||||
Accounts payable - related parties | 171,759 | 177,160 | |||||||||||||||
Short term loans - bank | 215,955 | 114,935 | |||||||||||||||
Short term loans - others | 123,974 | 141,290 | |||||||||||||||
Short term loans - related parties | 42,613 | 35,839 | |||||||||||||||
Current maturities of long-term loans – related party | 56,372 | 54,885 | |||||||||||||||
Other payables and accrued liabilities | 43,978 | 29,769 | |||||||||||||||
Other payables - related parties | 96,901 | 64,941 | |||||||||||||||
Customer deposits | 94,767 | 109,120 | |||||||||||||||
Customer deposits - related parties | 14,512 | 21,998 | |||||||||||||||
Deposit due to sales representatives | 28,184 | 33,870 | |||||||||||||||
Deposit due to sales representatives – related parties | 1,809 | 1,238 | |||||||||||||||
Taxes payable | 8,258 | 15,339 | |||||||||||||||
Deferred lease income | 2,178 | 2,120 | |||||||||||||||
Intercompany payable to be eliminated | - | 30,476 | |||||||||||||||
Total current liabilities | 2,318,416 | 2,128,660 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 15,974 | 38,088 | |||||||||||||||
Long-term other payable – related party | - | 43,008 | |||||||||||||||
Deferred lease income - noncurrent | 75,480 | 75,079 | |||||||||||||||
Capital lease obligations | 354,576 | 330,099 | |||||||||||||||
Profit sharing liability | 241,090 | 328,827 | |||||||||||||||
Other noncurrent liabilities | 1,402 | - | |||||||||||||||
Total non-current liabilities | 688,522 | 815,101 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 3,006,938 | $ | 2,943,761 | |||||||||||||
VIE and its subsidiaries’ statements of operations are as follows: | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 606,444 | $ | 708,974 | |||||||||||||
Gross profit (loss) | $ | 8,122 | $ | -18,417 | |||||||||||||
Income (loss) from operations | $ | 32,967 | $ | -37,000 | |||||||||||||
Net income (loss) attributable to controlling interest | $ | 8,284 | $ | -39,494 | |||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 1,903,933 | $ | 2,126,556 | |||||||||||||
Gross profit (loss) | $ | -23,704 | $ | 12,628 | |||||||||||||
Income (loss) from operations | $ | 32,998 | $ | -40,071 | |||||||||||||
Net loss attributable to controlling interest | $ | -18,335 | $ | -92,974 | |||||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Prior to March 1, 2012, Longmen Joint Venture had three consolidated subsidiaries, Hualong Fire Retardant Material Co., Ltd. (“Hualong”), Hancheng Tongxing Metallurgy Co., Ltd. (“Tongxing”) and Beijing Huatianyulong International Steel Trading Co., Ltd. (“Huatianyulong”), in which Longmen Joint Venture did not hold a controlling interest. On March 1, 2012, Longmen Joint Venture sold its equity interest in Tongxing, and, as of March 31, 2012, Longmen Joint Venture has two consolidated subsidiaries, Hualong and Huatianyulong, in which it does not hold a controlling interest. Hualong and Huatianyulong are separate legal entities which were established in the PRC as limited liability companies and subsequently acquired by Longmen Joint Venture in June 2007 and July 2008, respectively. Prior to and subsequent to their acquisition by Longmen Joint Venture, these two entities have been operating as self-sustaining integrated sets of activities and assets conducted and managed for the purpose of providing a return to shareholders consisting of all the inputs, processes and outputs of a business. However, these two entities do not meet the definition of variable interest entities. Further consideration was given to whether consolidation was appropriate under the voting interest model, specifically where the power of control may exist with a lesser percentage of ownership (i.e. less than 50%), for example, by contract, lease, agreement with other stockholders or by court decree. | |||||||||||||||||
Hualong | |||||||||||||||||
Longmen Joint Venture, the single largest shareholder, holds a 36.0% equity interest in Hualong. The other two shareholders, who own 34.67% and 29.33% respectively, assigned their voting rights to Longmen Joint Venture in writing at the time of the acquisition of Hualong. The voting rights have been assigned through the date Hualong ceases its business operations or the other two shareholders sell their interest in Hualong. Hualong’s main business is to supply refractory. | |||||||||||||||||
Tongxing | |||||||||||||||||
Prior to March 1, 2012, Longmen Joint Venture held a 22.76% equity interest in Tongxing while hundreds of employees of Longmen Joint Venture owned the remaining 77.24%. Each individual employee shareholder comprising the remaining 77.24% assigned its voting rights to Longmen Joint Venture in writing at the time of the acquisition of Tongxing. The voting rights assigned were effective until Tongxing ceased its business operations or Longmen Joint Venture liquidated its equity interest of Tongxing, whichever came first. | |||||||||||||||||
On March 1, 2012, Longmen Joint Venture sold its 22.76% equity interest of Tongxing to two individuals, who are the representatives from Long Steel Group. As of March 1, 2012, Tongxing had a carrying value of net assets of $40.5 million which were included in the consolidated net assets of the Company and a noncontrolling interest in Tongxing of $32.5 million. The Company retained the land use right associated with the Tongxing property adjacent to the Longmen Joint Venture facility, which had a carrying value of $3.6 million immediately prior to the transaction and relinquished its controlling interest in the remaining net assets (primarily operating assets). In connection with the transaction, the Company also settled with a payable in cash of $0.3 million and transferred the dividend receivable of $0.9 million from Tongxing to the two individuals. These arrangements meet the criteria of ASC 810-10-40-6b and 6d, deconsolidation of a Subsidiary with multiple arrangements treated as a single transaction. As the land use rights held in Tongxing have been included as part of the Company’s consolidated assets, this transaction was considered as a change in the Company’s ownership interest in the land use right similar to a change in a parent company’s ownership interest in a subsidiary in accordance with ASC 810-10-45-23 and therefore the carrying value of the land use right was not stepped up to fair value. The net impact of these transactions resulted in a reduction of $3.1 million paid-in capital on March 1, 2012. | |||||||||||||||||
Huatianyulong | |||||||||||||||||
Longmen Joint Venture holds a 50.0% equity interest in Huatianyulong and the other unrelated shareholder holds the remaining 50.0%. The other shareholder assigned its voting rights to Longmen Joint Venture in writing at the time of acquisition of Huatianyulong. The voting rights have been assigned through the date Huatianyulong ceases its business operation or the other unrelated shareholder sells its interest in Huatianyulong. Huatianyulong mainly sells imported iron ore. | |||||||||||||||||
The Company has determined that it is appropriate for Longmen Joint Venture to consolidate Hualong and Huatianyulong with appropriate recognition in the Company’s financial statements of the non-controlling interests in each entity, beginning on the acquisition dates as these were also the effective dates of the agreements with other stockholders granting a majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. The Company also has determined that it is appropriate for Longmen Joint Venture to consolidate Tongxing’s net income from the beginning of the acquisition date to March 1, 2012, the date on which Longmen Joint Venture relinquished its equity interest and majority voting rights in Tongxing, and thereby its power of control of Tongxing. | |||||||||||||||||
Liquidity Disclosure [Policy Text Block] | ' | ||||||||||||||||
(d) | Liquidity | ||||||||||||||||
The Company’s accounts have been prepared in accordance with U.S. GAAP on a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon aligning its sources of funding (debt and equity) with the expenditure requirements of the Company and repayment of the short-term debt facilities as and when they fall due. | |||||||||||||||||
The steel business is capital intensive and as a normal industry practice in PRC, the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties, financing sales, bank acceptance notes, and capital leases have been utilized to finance the working capital requirements and the capital expenditures of the Company. As a result, the Company’s debt to equity ratio as of September 30, 2013 and December 31, 2012 were (6.6) and (7.1), respectively. As of September 30, 2013, the Company’s current liabilities exceed current assets (excluding non-cash item) by $1.1 billion. | |||||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for majority of total sales of the Company. As such, the majority of the Company’s working capital needs come from Longmen Joint Venture. The Company’s ability to continue as a going concern depends heavily on Longmen Joint Venture’s operations. Longmen Joint Venture has obtained different types of financial supports, which are listed below by category: | |||||||||||||||||
Line of credit | |||||||||||||||||
The Company received lines of credit from the listed major banks totaling $110.8 million with expiration dates ranging from September 27, 2014 to October 26, 2014. | |||||||||||||||||
Amount of | |||||||||||||||||
Line of Credit | |||||||||||||||||
Banks | (in millions) | Repayment Date | |||||||||||||||
Bank of China | 6.5 | August 25, 2014 to October 26, 2014 | |||||||||||||||
China Everbright Bank | 48.9 | 8-Oct-14 | |||||||||||||||
Bank of Xi’an | 32.6 | 9-Oct-14 | |||||||||||||||
Bank of Jinzhou | 22.8 | September 27, 2014* | |||||||||||||||
Total | $ | 110.8 | |||||||||||||||
* Management expects the line of credit will be extended after September 27, 2014. | |||||||||||||||||
As of the date of this report, the Company utilized $61.9 million of these lines of credit. | |||||||||||||||||
Vendor financing | |||||||||||||||||
Longmen Joint Venture signed additional vendor financing agreements, which will provide liquidity to the Company in a total amount of $815.0 million with the following companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company A – related party | January 6, 2013 – January 5, 2015 | $ | 163 | ||||||||||||||
Company B – third party | January 6, 2013 – November 7, 2015 | 163 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2015 | 489 | |||||||||||||||
Total | $ | 815 | |||||||||||||||
Company A, a related party company and Company B, a third party company, are both Longmen Joint Venture’s major coke suppliers. They have been doing business with Longmen Joint Venture for years. Each company has signed a two-year agreement with Longmen Joint Venture which was effective on January 6, 2013 to finance Longmen Joint Venture for its coke purchase for a two-year period. Company B signed an additional two-year agreement with Longmen Joint Venture effective on November 7, 2013. According to the above signed agreement, both Company A and B will not demand any cash payments for next two years. As of the date of this report, our payables to Company A and Company B were approximately$64.3 million and $51.9 million, respectively. | |||||||||||||||||
As a critical business stakeholder to the Company’s Tianwu Joint Venture, Company C is a Fortune 500 Company. In October 2012, Company C signed a one year agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $158.3 million to commence on October 1, 2012. In June 2013, Company C signed another one year agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $318.4 million to commence on October 1, 2013. According to the agreement, Company C agrees to provide an amount not less than $318.4 million in iron ore to Longmen Joint Venture. Subject to the terms of the agreement, Longmen Joint Venture is subject to a penalty of 0.05% of the daily outstanding balance owed to Company C in an event of late payment. The agreement also helps secure Company C’s iron ore sales to Longmen Joint Venture. On June 28, 2013, Company C agreed to increase the finance amount limit to $489.0 million and extended the financing period to March 31, 2015. As of the date of this report, our payable to Company C is approximately$1.2 million. | |||||||||||||||||
Financing sales | |||||||||||||||||
As part of our working capital management, Longmen Joint Venture has entered into an additional financing sales agreement with a third party company, Company D and two 100% owned subsidiaries of Longmen Joint Venture, named Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”) (“financing sales”) to provide liquidity to the Company in the total amount of $81.5 million. See Note 9 for financing sales details. | |||||||||||||||||
Based on the contract terms, from December 31, 2012 until the earlier of the expiration date of the contract or December 31, 2013, the advance payment balance from Company D cannot be less than $81.5 million. The contract has been extended to December 31, 2014. The remaining financing sales balance can be paid by installment based on Longmen Joint Venture’s goods delivery volume. As of the date of this report, our payable to Company D is approximately $24.5 million. | |||||||||||||||||
Other financing | |||||||||||||||||
On January 7, 2013, November 6, 2013, November 7, 2013, Longmen Joint Venture signed a payment extension agreement with each company listed below. In total, Longmen Joint Venture can get $77.4 million in financial support from a two-year balancing payment extension granted by the following five companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company E – related party | January 7, 2013 – January 6, 2015 | $ | 16.3 | ||||||||||||||
Company F – related party | January 7, 2013 – January 6, 2015 | 21.2 | |||||||||||||||
Company G – related party | January 7, 2013 – January 6, 2015 | 7.3 | |||||||||||||||
Company H – related party | November 7, 2013 – November 7, 2015 | 16.3 | |||||||||||||||
Company I – related party | November 6, 2013 – November 6, 2015 | 16.3 | |||||||||||||||
Total | $ | 77.4 | |||||||||||||||
According to the contract terms, Company E, Company F, Company G, Company H and Company I have agreed to grant a two year payment extension in the amounts of $16.3 million, $21.2 million, $7.3 million, $16.3 million and $16.3 million respectively. As of the date of this report, our payables to Company E, Company F, Company G, Company H and Company I are approximately $17.9 million, $14.0 million, $18.9million, $7.5 million and $0, respectively. | |||||||||||||||||
Amount due to sales representatives | |||||||||||||||||
Longmen Joint Venture entered into agreements with various entities to act as the Company’s exclusive sales agents in specified geographic areas. These exclusive sales agents must meet certain criteria and are required to deposit a certain amount of money with the Company. In return, the sales agents receive exclusive sales rights in a specified area and discounted prices on products they order. These deposits bear no interest and are required to be returned to the sales agent once the agreement is terminated. As of September 30, 2013, Longmen Joint Venture has collected a total amount of $30.0 million. Historically, this amount is quite stable and we do not expect a big fluctuation in this amount for the next twelve months from September 30, 2013 onwards. | |||||||||||||||||
With the financial support from the banks and the companies above, management is of the opinion that the Company has sufficient funds to meet its future operations, working capital requirements and debt obligations until the end of September 30, 2014.The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | |||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months ended | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Current liabilities over current assets (excluding non-cash items) as of September 30, 2013 (unaudited) | $ | -1,072.00 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 110.8 | ||||||||||||||||
Cash provided by vendor financing | 815 | ||||||||||||||||
Cash provided by financing sales | 81.5 | ||||||||||||||||
Cash provided by other financing | 77.4 | ||||||||||||||||
Cash provided by sales representatives | 30 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended September 30, 2014 | -28.6 | ||||||||||||||||
Net projected change in cash for the twelve months ended September 30, 2014 | $ | 14.1 | |||||||||||||||
As a result, the unaudited condensed consolidated financial statements for the period ended September 30, 2013 have been prepared on a going concern basis. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
(e) | Use of estimates | ||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited condensed consolidated financial statements and footnotes. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the fair value of the profit sharing liability, the useful lives of and impairment for property, plant and equipment, and potential losses on uncollectible receivables, allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital lease and the present value of the net minimum lease payments of the capital lease. Actual results could differ from these estimates. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||
(f) | Concentration of risks and uncertainties | ||||||||||||||||
The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |||||||||||||||||
The Company has significant exposure to the fluctuation of raw materials and energy prices as part of its normal operations. As of September 30, 2013 and December 31, 2012, the Company does not have any open commodity contracts to mitigate such risks. | |||||||||||||||||
Cash includes demand deposits in accounts maintained with banks within the PRC, Hong Kong and the United States. Total cash (including restricted cash balances) in these banks on September 30, 2013 and December 31, 2012 amounted to $467.9 million and $369.9 million, including $3.1 million and $2.3 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of September 30, 2013, $0.2 million cash in the bank was covered by insurance. The Company has not experienced any losses in other bank accounts and believes it is not exposed to any risks on its cash in bank accounts. | |||||||||||||||||
The Company’s five major customers are all distributors and collectively represented approximately 25.5% and 23.4% of the Company’s total sales for the three and nine months ended September 30, 2013, respectively. The Company had five major customers, which represented approximately 27.2% and 34.1% of the Company’s total sales for the three months and nine months ended September 30, 2012, respectively. None of the five major customers accounted for more than 10% of total sales for the three and nine months ended September 30, 2013 and 2012, respectively. These five major customers accounted for 15.9% and 47.8% of total accounts receivable, including related parties, as of September 30, 2013 and December 31, 2012, respectively. One of the five major customers accounted for more than 10% of total accounts receivable, which amounted to $1.4 million and $10.4 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
For the three and nine months ended September 30, 2013, the Company purchased approximately 15.3% and 29.3% of its raw materials from five major suppliers, respectively. None of the five major suppliers individually accounted for more than 10% of the total purchases for the three and nine months ended September 30, 2013. The purchases from the five major suppliers represent approximately 25.4% and 39.6% of the Company’s total purchases for the three months and nine months ended September 30, 2012, respectively. Two of the five major suppliers individually accounted for more than 10% of the total purchases for the nine months ended September 30, 2012. These five vendors accounted for 28.9% and 33.8% of total accounts payable, including related parties, as of September 30, 2013 and December 31, 2012, respectively. None of the five major suppliers individually accounted for more than 10% of total accounts payable as September 30, 2013 and one of the five major suppliers individually accounted for more than 10% of total accounts payable as December 31, 2012. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||||||
(g) | Foreign currency translation and other comprehensive income | ||||||||||||||||
The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries in China use the local currency, Renminbi (RMB), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | |||||||||||||||||
Translation adjustments included in accumulated other comprehensive income amounted to $2.5 million and $10.2 million as of September 30, 2013 and December 31, 2012, respectively. The balance sheet amounts, with the exception of equity at September 30, 2013 and December 31, 2012 were translated at 6.13 RMB and 6.30 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the three months ended September 30, 2013 and 2012 were 6.16 RMB and 6.33 RMB, respectively. The average translation rates applied to statement of operations accounts for the nine months ended September 30, 2013 and 2012 were 6.21 RMB and 6.31 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
(h) | Financial instruments | ||||||||||||||||
The accounting standards regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, short term investment, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. For short term loans and notes payable, the Company concluded the carrying values are a reasonable estimate of fair values because of the short period of time between the origination and repayment and as their stated interest rates approximate current rates available. | |||||||||||||||||
The Company analyzes all financial instruments with features of both liabilities and equity, pursuant to which the Company’s warrants were required to be recorded as a liability at fair value and marked to market each reporting period. | |||||||||||||||||
The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: | |||||||||||||||||
· | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||
· | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | ||||||||||||||||
· | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. | ||||||||||||||||
On December 13, 2007, the Company entered into a Securities Purchase Agreement (the “Agreement”) with certain institutional investors issuing $40.0 million (“Notes”) and 1,154,958 warrants. The warrants can be exercised for common stock through May 13, 2013 at $13.51 per share, subject to customary anti-dilution adjustments. On December 24, 2009, the holders of the existing warrants of 1,154,958 shares entered into an agreement with the Company that reset the exercise price from $13.51 to $5 per share and increased the number of warrants from 1,154,958 to 3,900,871, which expired on May 13, 2013. | |||||||||||||||||
In December 2009, the Company issued an additional 2,777,778 warrants in connection with a registered direct offering, which expired as of June 24, 2012. | |||||||||||||||||
The aforementioned warrants meet the definition of a derivative instrument in the accounting standards. Therefore these instruments were accounted for as derivative liabilities and recorded at their fair value as of each reporting period. The change in the value of the derivative liabilities is charged against or credited to income. The fair value was determined using the Cox Rubenstein Binomial Model, defined in the accounting standard as Level 2 inputs, and recorded the change in earnings. See Note 12– “Convertible notes and derivative liabilities” for the variables used in the Cox Rubenstein Binomial model. | |||||||||||||||||
The Company determined the carrying value of the profit sharing liability using Level 3 inputs by considering the present value of Longmen Joint Venture’s projected profits/losses with a discount rate of 7.3% based on the Company’s average borrowing rate. The projected profits/losses in Longmen Joint Venture were based upon, but not limited to, the following assumptions until April 30, 2031: | |||||||||||||||||
· | projected selling units and growth in the steel market | ||||||||||||||||
· | projected unit selling price in the steel market | ||||||||||||||||
· | projected unit purchase cost in the coal and iron ore markets | ||||||||||||||||
· | selling and general and administrative expenses to be in line with the growth in the steel market | ||||||||||||||||
· | projected bank borrowings | ||||||||||||||||
The above assumptions were reviewed by the Company at September 30, 2013 and the Company changed those assumptions as compared to the assumption used at December 31, 2012 because of the changes in market conditions in PRC. Since the Company had the most updated information from the banks, GDP report and the operating results from the three and nine months ended September 30, 2013, all of the above information indicated the downward trend in the steel manufacturing industry in the coming years. As a result, the Company re-measured the fair value of the 40% profit sharing liability as of the period ended September 30, 2013 and recorded a gain on change in fair value of profit sharing liability of $41.8 million and $107.9 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
If there will be any slight changes in any of the assumptions that we used, the fair value of the profit sharing liability will be changed accordingly. If we would reduce the projected bank borrowings rate by 1.0% and other factors remained unchanged, our profit sharing liability as of the beginning of the period ended September 30, 2013 would have been $254.9 million and we would reduce the gain from the change in the fair value of profit sharing liabilities by $32.9 million.If we would reduce the projected selling units and growth in the steel market rate by 1.0% and other factors remained unchanged, our profit sharing liability as of the beginning of the period ended September 30, 2013 would have been $214.3 million and we would increase the gain from the change in the fair value of profit sharing liabilities by $8.3 million. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||||||
of September 30, | 2013 | ||||||||||||||||
(in thousands) | 2013 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
Total | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||||||
of December 31, | 2012 | ||||||||||||||||
(in thousands) | 2012 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Derivative liabilities | $ | 1 | $ | - | $ | 1 | $ | - | |||||||||
Profit sharing liability | 328,827 | - | - | 328,827 | |||||||||||||
Total | $ | 328,828 | $ | - | $ | 1 | $ | 328,827 | |||||||||
The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the nine month ended September 30, 2013 and for the year ended December 31, 2012: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 328,828 | $ | 303,243 | |||||||||||||
Change in fair value of profit sharing liability | -107,877 | - | |||||||||||||||
Current period interest expense accreted | 12,440 | 22,499 | |||||||||||||||
Change of derivative liabilities charged to earnings | 1 | 9 | |||||||||||||||
Exchange rate effect | 7,698 | 3,077 | |||||||||||||||
Ending balance | $ | 241,090 | $ | 328,828 | |||||||||||||
Except for the derivative liabilities and profit sharing liability, the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with the accounting standard. The carrying value of the long term loans-related party approximates to its fair value as of the reporting date. | |||||||||||||||||
Notes Receivable [Policy Text Block] | ' | ||||||||||||||||
(i) | Notes receivable | ||||||||||||||||
Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. | |||||||||||||||||
Restricted notes receivable represents notes receivable pledged as collateral for short-term loans and short-term notes payable issued by banks. | |||||||||||||||||
Interest expenses for early submission request of payment for the three months ended September 30, 2013 and 2012 amounted to $9.6 million and $16.3 million, respectively, and amounted to $26.9 million and $65.6 million, respectively, for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
(j) | Plant and equipment, net | ||||||||||||||||
Plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows: | |||||||||||||||||
Buildings and Improvements | 10-40 Years | ||||||||||||||||
Machinery | 10-30 Years | ||||||||||||||||
Machinery and equipment under capital lease | 20 Years | ||||||||||||||||
Other equipment | 5 Years | ||||||||||||||||
Transportation Equipment | 5 Years | ||||||||||||||||
The Company assesses all significant leases for purposes of classification as either operating or capital. At lease inception, if the lease meets any of the four following criteria, the Company will classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | |||||||||||||||||
Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service, maintenance, repairs and minor renewals are charged directly to expense as incurred. Major additions and betterment to buildings and equipment are capitalized. Interest incurred during construction is capitalized into construction in progress. All other interest is expensed as incurred. | |||||||||||||||||
Long lived assets, including buildings and improvements, equipment and intangible assets are reviewed if events and changes in circumstances indicate that its carrying amount may not be recoverable, to determine whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | |||||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
(j) | Intangible assets | ||||||||||||||||
Finite lived intangible assets of the Company are reviewed for impairment if events and circumstances require. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. As of September 30, 2013, the Company expects these assets to be fully recoverable. | |||||||||||||||||
Land use rights | |||||||||||||||||
All land in the PRC is owned by the government. However, the government grants “land use rights.” General Steel (China) acquired land use rights in 2001 for a total of $3.9 million (RMB 23.7 million). These land use rights are for 50 years and expire in 2050 and 2053. The Company amortizes the land use rights over the twenty-year business term because its business license had a twenty-year term. | |||||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.2 million (RMB 148.6 million) to the Longmen Joint Venture. The contributed land use rights are for 50 years and expire in 2048 to 2052. | |||||||||||||||||
Maoming Hengda has land use rights amounting to $2.7 million (RMB 16.6 million) for 50 years that expire in 2054. | |||||||||||||||||
Other than the land use rights that General Steel (China) acquired in 2001, the Company amortizes the land use rights over their 50 year term. | |||||||||||||||||
Entity | Original Cost | Expires on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,867 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,226 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,705 | 2054 | ||||||||||||||
Mining right | |||||||||||||||||
Mining rights are capitalized at cost when acquired, including amounts associated with any value beyond proven and probable reserves, and amortized to operations as depletion expense using the units-of-production method over the estimated proven and probable recoverable tons. Longmen Joint Venture has iron ore mining right amounting to $2.4 million (RMB 15.0 million), which is amortized over the estimated recoverable reserve of 4.2 million tons. | |||||||||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||||||||
(k) | Investments in unconsolidated entities | ||||||||||||||||
Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method. | |||||||||||||||||
The table below summarizes Longmen Joint Venture’s investment holdings as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Year | Net investment | Owned | Net investment | Owned | |||||||||||||
Unconsolidated entities | acquired | (In thousands) | % | (In thousands) | % | ||||||||||||
Xian Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,161 | 24.1 | $ | 1,166 | 24.1 | ||||||||||
Total investment income in unconsolidated subsidiaries amounted to $0.05 million and $0.04 million for the three months ended September 30, 2013 and 2012, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2013 and 2012, respectively, which was included in “Loss from equity investments” in the unaudited condensed consolidated statements of operations and comprehensive income (loss). | |||||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||||||
(l) | Reclassifications | ||||||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. | |||||||||||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | ' | ||||||||||||||||
The unaudited condensed consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | |||||||||||||||||
Percentage | |||||||||||||||||
Subsidiary | of Ownership | ||||||||||||||||
General Steel Investment Co., Ltd. | British Virgin Islands | 100 | % | ||||||||||||||
General Steel (China) Co., Ltd. (“General Steel (China)”) | PRC | 100 | % | ||||||||||||||
Baotou Steel – General Steel Special Steel Pipe Joint Venture Co., Ltd. | PRC | 80 | % | ||||||||||||||
Yangpu Shengtong Investment Co., Ltd. | PRC | 99.1 | % | ||||||||||||||
Tianjin Qiu Steel Investment Co., Ltd. (“Qiu Steel”) | PRC | 98.7 | % | ||||||||||||||
Longmen Joint Venture | PRC | VIE/60.0 | % | ||||||||||||||
Maoming Hengda Steel Company, Ltd. (“Maoming Hengda”) | PRC | 99 | % | ||||||||||||||
Tianwu General Steel Material Trading Co., Ltd (“Tianwu Joint Venture”) | PRC | 60 | % | ||||||||||||||
Schedule Of Consolidated Assets and Liabilities Of Variable Interest Entities and Subsidiaries [Table Text Block] | ' | ||||||||||||||||
The carrying amount of the VIE and its subsidiaries’ consolidated assets and liabilities are as follows: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 1,253,672 | $ | 1,285,967 | |||||||||||||
Plant and equipment, net | 1,239,805 | 1,154,811 | |||||||||||||||
Other noncurrent assets | 44,475 | 72,428 | |||||||||||||||
Total assets | 2,537,952 | 2,513,206 | |||||||||||||||
Total liabilities | -3,006,938 | -2,943,761 | |||||||||||||||
Net liabilities | $ | -468,986 | $ | -430,555 | |||||||||||||
Schedule Of Liabilities Of Variable Interest Entities and Subsidiaries [Table Text Block] | ' | ||||||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 950,498 | $ | 971,117 | |||||||||||||
Accounts payable | 466,631 | 324,563 | |||||||||||||||
Accounts payable - related parties | 171,759 | 177,160 | |||||||||||||||
Short term loans - bank | 215,955 | 114,935 | |||||||||||||||
Short term loans - others | 123,974 | 141,290 | |||||||||||||||
Short term loans - related parties | 42,613 | 35,839 | |||||||||||||||
Current maturities of long-term loans – related party | 56,372 | 54,885 | |||||||||||||||
Other payables and accrued liabilities | 43,978 | 29,769 | |||||||||||||||
Other payables - related parties | 96,901 | 64,941 | |||||||||||||||
Customer deposits | 94,767 | 109,120 | |||||||||||||||
Customer deposits - related parties | 14,512 | 21,998 | |||||||||||||||
Deposit due to sales representatives | 28,184 | 33,870 | |||||||||||||||
Deposit due to sales representatives – related parties | 1,809 | 1,238 | |||||||||||||||
Taxes payable | 8,258 | 15,339 | |||||||||||||||
Deferred lease income | 2,178 | 2,120 | |||||||||||||||
Intercompany payable to be eliminated | - | 30,476 | |||||||||||||||
Total current liabilities | 2,318,416 | 2,128,660 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 15,974 | 38,088 | |||||||||||||||
Long-term other payable – related party | - | 43,008 | |||||||||||||||
Deferred lease income - noncurrent | 75,480 | 75,079 | |||||||||||||||
Capital lease obligations | 354,576 | 330,099 | |||||||||||||||
Profit sharing liability | 241,090 | 328,827 | |||||||||||||||
Other noncurrent liabilities | 1,402 | - | |||||||||||||||
Total non-current liabilities | 688,522 | 815,101 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 3,006,938 | $ | 2,943,761 | |||||||||||||
Schedule Of Statement Of Operations Of Variable Interest Entities and Subsidiaries [Table Text Block] | ' | ||||||||||||||||
VIE and its subsidiaries’ statements of operations are as follows: | |||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 606,444 | $ | 708,974 | |||||||||||||
Gross profit (loss) | $ | 8,122 | $ | -18,417 | |||||||||||||
Income (loss) from operations | $ | 32,967 | $ | -37,000 | |||||||||||||
Net income (loss) attributable to controlling interest | $ | 8,284 | $ | -39,494 | |||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 1,903,933 | $ | 2,126,556 | |||||||||||||
Gross profit (loss) | $ | -23,704 | $ | 12,628 | |||||||||||||
Income (loss) from operations | $ | 32,998 | $ | -40,071 | |||||||||||||
Net loss attributable to controlling interest | $ | -18,335 | $ | -92,974 | |||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | ' | ||||||||||||||||
The Company received lines of credit from the listed major banks totaling $110.8 million with expiration dates ranging from September 27, 2014 to October 26, 2014. | |||||||||||||||||
Amount of | |||||||||||||||||
Line of Credit | |||||||||||||||||
Banks | (in millions) | Repayment Date | |||||||||||||||
Bank of China | 6.5 | August 25, 2014 to October 26, 2014 | |||||||||||||||
China Everbright Bank | 48.9 | 8-Oct-14 | |||||||||||||||
Bank of Xi’an | 32.6 | 9-Oct-14 | |||||||||||||||
Bank of Jinzhou | 22.8 | September 27, 2014* | |||||||||||||||
Total | $ | 110.8 | |||||||||||||||
* Management expects the line of credit will be extended after September 27, 2014. | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||||||
of September 30, | 2013 | ||||||||||||||||
(in thousands) | 2013 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
Total | $ | 241,090 | $ | - | $ | - | $ | 241,090 | |||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2012: | |||||||||||||||||
Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||||||
of December 31, | 2012 | ||||||||||||||||
(in thousands) | 2012 | Using Fair Value Hierarchy | |||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Derivative liabilities | $ | 1 | $ | - | $ | 1 | $ | - | |||||||||
Profit sharing liability | 328,827 | - | - | 328,827 | |||||||||||||
Total | $ | 328,828 | $ | - | $ | 1 | $ | 328,827 | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the nine month ended September 30, 2013 and for the year ended December 31, 2012: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 328,828 | $ | 303,243 | |||||||||||||
Change in fair value of profit sharing liability | -107,877 | - | |||||||||||||||
Current period interest expense accreted | 12,440 | 22,499 | |||||||||||||||
Change of derivative liabilities charged to earnings | 1 | 9 | |||||||||||||||
Exchange rate effect | 7,698 | 3,077 | |||||||||||||||
Ending balance | $ | 241,090 | $ | 328,828 | |||||||||||||
Schedule Of Property Plant and Equipment Estimated Useful Life [Table Text Block] | ' | ||||||||||||||||
The estimated useful lives are as follows: | |||||||||||||||||
Buildings and Improvements | 10-40 Years | ||||||||||||||||
Machinery | 10-30 Years | ||||||||||||||||
Machinery and equipment under capital lease | 20 Years | ||||||||||||||||
Other equipment | 5 Years | ||||||||||||||||
Transportation Equipment | 5 Years | ||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | ||||||||||||||||
Other than the land use rights that General Steel (China) acquired in 2001, the Company amortizes the land use rights over their 50 year term. | |||||||||||||||||
Entity | Original Cost | Expires on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,867 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,226 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,705 | 2054 | ||||||||||||||
Schedule Of Investments By Affiliates [Table Text Block] | ' | ||||||||||||||||
The table below summarizes Longmen Joint Venture’s investment holdings as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Year | Net investment | Owned | Net investment | Owned | |||||||||||||
Unconsolidated entities | acquired | (In thousands) | % | (In thousands) | % | ||||||||||||
Xian Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,161 | 24.1 | $ | 1,166 | 24.1 | ||||||||||
Longmen Joint Venture [Member] | ' | ||||||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | ' | ||||||||||||||||
The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | |||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months ended | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Current liabilities over current assets (excluding non-cash items) as of September 30, 2013 (unaudited) | $ | -1,072.00 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 110.8 | ||||||||||||||||
Cash provided by vendor financing | 815 | ||||||||||||||||
Cash provided by financing sales | 81.5 | ||||||||||||||||
Cash provided by other financing | 77.4 | ||||||||||||||||
Cash provided by sales representatives | 30 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended September 30, 2014 | -28.6 | ||||||||||||||||
Net projected change in cash for the twelve months ended September 30, 2014 | $ | 14.1 | |||||||||||||||
Vendor Financing [Member] | ' | ||||||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | ' | ||||||||||||||||
Longmen Joint Venture signed additional vendor financing agreements, which will provide liquidity to the Company in a total amount of $815.0 million with the following companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company A – related party | January 6, 2013 – January 5, 2015 | $ | 163 | ||||||||||||||
Company B – third party | January 6, 2013 – November 7, 2015 | 163 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2015 | 489 | |||||||||||||||
Total | $ | 815 | |||||||||||||||
Other Financing [Member] | ' | ||||||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | ' | ||||||||||||||||
On January 7, 2013, November 6, 2013, November 7, 2013, Longmen Joint Venture signed a payment extension agreement with each company listed below. In total, Longmen Joint Venture can get $77.4 million in financial support from a two-year balancing payment extension granted by the following five companies: | |||||||||||||||||
Financing Amount | |||||||||||||||||
Company | Financing period covered | (in millions) | |||||||||||||||
Company E – related party | January 7, 2013 – January 6, 2015 | $ | 16.3 | ||||||||||||||
Company F – related party | January 7, 2013 – January 6, 2015 | 21.2 | |||||||||||||||
Company G – related party | January 7, 2013 – January 6, 2015 | 7.3 | |||||||||||||||
Company H – related party | November 7, 2013 – November 7, 2015 | 16.3 | |||||||||||||||
Company I – related party | November 6, 2013 – November 6, 2015 | 16.3 | |||||||||||||||
Total | $ | 77.4 | |||||||||||||||
Loans_receivable_related_parti1
Loans receivable - related parties (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ' | |||||||
Schedule Of Loans Receivable Related Parties Current [Table Text Block] | ' | |||||||
The Company had the following loans receivable – related parties due within one year as of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Loans to Long Steel Group; due on demand and non-interest bearing. | - | 63,319 | ||||||
Loan to Teamlink Investment Co., Ltd; due in December 2013, June 2014, and July 2014; interest rate was 4.75% | 4,540 | 6,000 | ||||||
Total loans receivable – related parties | $ | 4,540 | $ | 69,319 | ||||
Accounts_receivable_including_1
Accounts receivable (including related parties), net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable, including related party receivables, net of allowance for doubtful accounts consists of the following: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 9,729 | $ | 8,062 | ||||
Less: allowance for doubtful accounts | -1,152 | -1,367 | ||||||
Accounts receivable – related parties | 3,252 | 14,966 | ||||||
Net accounts receivable | $ | 11,829 | $ | 21,661 | ||||
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | ' | |||||||
Movement of allowance for doubtful accounts is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 1,367 | $ | 2,023 | ||||
Charge to expense | - | 433 | ||||||
Less: recovery | -249 | -1,109 | ||||||
Exchange rate effect | 34 | 20 | ||||||
Ending balance | $ | 1,152 | $ | 1,367 | ||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consist of the following: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 23,302 | $ | 23,123 | ||||
Raw materials | 138,951 | 141,503 | ||||||
Finished goods | 22,527 | 57,630 | ||||||
Less: allowance for inventory valuation | -7,397 | -9,585 | ||||||
Total inventories | $ | 177,383 | $ | 212,671 | ||||
Summary Of Inventory Valuation Allowance [Table Text Block] | ' | |||||||
Movement of allowance for inventory valuation is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 9,585 | $ | 38,143 | ||||
Addition | 7,305 | 9,582 | ||||||
Less: write-off | -9,722 | -38,519 | ||||||
Exchange rate effect | 229 | 379 | ||||||
Ending balance | $ | 7,397 | $ | 9,585 | ||||
Plant_and_equipment_net_Tables
Plant and equipment, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Plant and equipment consist of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Buildings and improvements | $ | 253,621 | $ | 214,661 | ||||
Machinery | 616,813 | 573,572 | ||||||
Machinery under capital lease | 603,248 | 587,334 | ||||||
Transportation and other equipment | 22,085 | 20,274 | ||||||
Construction in progress | 58,111 | 4,645 | ||||||
Subtotal | 1,553,878 | 1,400,486 | ||||||
Less: accumulated depreciation | -303,336 | -232,650 | ||||||
Total | $ | 1,250,542 | $ | 1,167,836 | ||||
Schedule Of Construction In Progress [Table Text Block] | ' | |||||||
Construction in progress consisted of the following as of September 30, 2013: | ||||||||
Construction in progress | Value | Completion | ||||||
description | (In thousands) | date | ||||||
1.2 million tons high-strength steel production line | 32,268 | Dec-13 | ||||||
Iron-making system dust removing equipment | 3,307 | Nov-13 | ||||||
Drainage system | 499 | Nov-13 | ||||||
Factory wall repair | 241 | Nov-13 | ||||||
Gas pipe repair | 121 | Nov-13 | ||||||
Office buildings | 1,336 | Nov-13 | ||||||
Equipment updates | 7,381 | Nov-13 | ||||||
#5 blast furnace construction | 208 | Sep-14 | ||||||
Reconstruction of miscellaneous factory buildings | 690 | Jan-14 | ||||||
Project materials | 2,154 | |||||||
Others | 9,906 | |||||||
Total | $ | 58,111 | ||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||
The carrying value of assets acquired under the capital lease consists of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Machinery | $ | 603,248 | $ | 587,334 | ||||
Less: accumulated depreciation | -69,248 | -46,497 | ||||||
Carrying value of leased assets | $ | 534,000 | $ | 540,837 | ||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
Intangible assets consist of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,798 | $ | 29,986 | ||||
Mining right | 2,448 | 2,384 | ||||||
Software | 742 | 692 | ||||||
Subtotal | 33,988 | 33,062 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -8,387 | -7,577 | ||||||
Accumulated amortization – mining right | -1,144 | -993 | ||||||
Accumulated amortization – software | -529 | -426 | ||||||
Subtotal | -10,060 | -8,996 | ||||||
Intangible assets, net | $ | 23,928 | $ | 24,066 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||
The estimated aggregate amortization and depletion expenses for each of the five succeeding years is as follows: | ||||||||
Estimated | ||||||||
amortization and | Gross carrying | |||||||
Year ending | depletion expenses | amount | ||||||
(in thousands) | (in thousands) | |||||||
30-Jun-14 | $ | 1,082 | 22,846 | |||||
30-Jun-15 | 1,082 | 21,764 | ||||||
30-Jun-16 | 1,082 | 20,682 | ||||||
30-Jun-17 | 1,082 | 19,600 | ||||||
30-Jun-18 | 1,082 | 18,518 | ||||||
Thereafter | 18,518 | - | ||||||
Total | $ | 23,928 | ||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term loans due to related party | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due November 2015 and interest rate are 5.6% - 5.9% per annum. | $ | 72,346 | $ | 92,973 | ||||
Less: Current maturities of long-term loans – related party | -47,896 | -54,885 | ||||||
Long-term loans - related party | $ | 24,450 | $ | 38,088 | ||||
Short Term Notes Payable [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
The Company had the following short-term notes payable as of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due various dates from October 2013 to March 2014. Restricted cash required of $24.5 million and $6.3 million as of September 30, 2013 and December 31, 2012, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 37,490 | $ | 12,696 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from October 2013 to August 2014. $381.3 million restricted cash and $237.2 million notes receivable are secured for notes payable as of September 30, 2013, and comparatively $316.4 million restricted cash and $345.8 million notes receivable secured as of December 31, 2012, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 950,498 | 971,117 | ||||||
Total short-term notes payable | $ | 987,988 | $ | 983,813 | ||||
Due To Banks [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Due to banks | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from December 2013 to September 2014. Weighted average interest rate was 7.2% per annum and 7.6% per annum as of September 30, 2013 and December 31, 2012, respectively; some are guaranteed by third parties while others are secured by equipment and inventory. These loans were either repaid or renewed subsequently on the due dates. | $ | 38,973 | $ | 32,189 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from November 2013 to August 2014. Weighted average interest rate was 6.5% per annum and 6.8% per annum as of September 30, 2013 and December 31, 2012, respectively; some are guaranteed by third parties, restricted cash or notes receivables. $120.0 million and $76.0 million restricted notes receivable were secured for the loans as of September 30, 2013 and December 31, 2012, respectively; These loans were either repaid or renewed subsequently on the due dates. | 215,956 | 114,935 | ||||||
Total short-term loans - bank | $ | 254,929 | $ | 147,124 | ||||
Due To Unrelated Parties [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Due to unrelated parties | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from October 2013 to February 2014, and weighted average interest rate was 5.2% per annum and 6.0% per annum as of September 30, 2013 and December 31, 2012, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 33,294 | $ | 25,324 | ||||
Longmen Joint Venture: Loans from financing sales. | 90,680 | 115,966 | ||||||
Maoming Hengda: Loans from one unrelated parties and one related party, due on demand, none interest bearing. | 6,196 | 6,033 | ||||||
Total short-term loans – others | $ | 130,170 | $ | 147,323 | ||||
Due To Related Parties [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Short term loans due to related parties | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Baotou Steel: Loans from Tianjin Hengying Trading Co., Ltd, due on demand, and interest rates is 10% per annum. | $ | 3,430 | $ | 4,133 | ||||
General Steel China: Loans from Tianjin Hengying Trading Co., Ltd., due on demand, and interest rates is 10% per annum. | - | 15,416 | ||||||
General Steel China: Loans from Tianjin Dazhan Industry Co, Ltd., due on demand, and interest rates is 10% per annum. | - | 21,397 | ||||||
General Steel China: Loans from Beijing Shenhua Xinyuan Metal Materials Co., Ltd., due on demand, and interest rates is 10% per annum. | 1,395 | 1,359 | ||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rates is 10% per annum. | 1,451 | 1,413 | ||||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due in December 2013, and interest rate is 7.0% per annum. | 33,580 | - | ||||||
Longmen Joint Venture: Loans from financing sales. | 9,033 | 35,839 | ||||||
Total short-term loans - related parties | $ | 48,889 | $ | 79,557 | ||||
Convertible_notes_and_derivati1
Convertible notes and derivative liabilities (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||
The fair value of the warrants as of December 31, 2012 was calculated using the Cox Rubenstein Binomial model based on the following variables: | |||||
31-Dec-12 | |||||
Expected volatility | 86 | % | |||
Expected dividend yield | 0 | % | |||
Risk-free interest rate | 0.08 | % | |||
Expected lives | 0.36 years | ||||
Market price | $ | 0.99 | |||
Strike price | $ | 5 | |||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||
The Company has the following warrants outstanding: | |||||
Outstanding as of December 31, 2011 | 6,678,649 | ||||
Granted | - | ||||
Forfeited / expired | -2,777,778 | ||||
Exercised | - | ||||
Outstanding as of December 31, 2012 | 3,900,871 | ||||
Granted | - | ||||
Forfeited / expired | -3,900,871 | ||||
Exercised | - | ||||
Outstanding as of September 30, 2013 | - | ||||
Capital_lease_obligation_Table
Capital lease obligation (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Leases, Capital [Abstract] | ' | ||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||||||||
Presented below is a schedule of estimated minimum lease payments on the capital lease obligation as well as payments for the profit sharing liability for the next five years as of September 30, 2013: | |||||||||||
Capital Lease Obligation | Capital Lease Obligation | ||||||||||
Year ending September 30, | Minimum Lease Payments | Profit (Loss) Sharing | Total | ||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||
2014 | $ | - | $ | - | $ | - | |||||
2015 | 126,557 | - | 126,557 | ||||||||
2016 | 28,654 | - | 28,654 | ||||||||
2017 | 28,654 | - | 28,654 | ||||||||
2018 | 28,654 | - | 28,654 | ||||||||
Thereafter | 360,567 | 650,586 | 1,011,153 | ||||||||
Total minimum lease payments | 573,086 | 650,586 | 1,223,672 | ||||||||
Less: amounts representing interest | -218,510 | -409,496 | -628,006 | ||||||||
Ending balance | $ | 354,576 | $ | 241,090 | $ | 595,666 | |||||
Taxes_Tables
Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended September 30, 2013 and 2012 are as follows: | ||||||||
For the three months ended | For the three months ended | |||||||
(In thousands) | September 30, 2013 | September 30, 2012 | ||||||
Current | $ | 25 | $ | 100 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 25 | $ | 100 | ||||
For the nine months ended | For the nine months ended | |||||||
(In thousands) | September 30, 2013 | September 30, 2012 | ||||||
Current | $ | 201 | $ | 510 | ||||
Deferred | - | 169 | ||||||
Total provision (benefit) for income taxes | $ | 201 | $ | 679 | ||||
Summary of Valuation Allowance [Table Text Block] | ' | |||||||
Movement of valuation allowance: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 72,891 | $ | 47,703 | ||||
Current period addition | 12,776 | 25,180 | ||||||
Current period reversal | -857 | - | ||||||
Deconsolidation of Tongxing | - | -216 | ||||||
Exchange difference | 2,125 | 224 | ||||||
Ending balance | $ | 86,935 | $ | 72,891 | ||||
Schedule Of Taxes Payable [Table Text Block] | ' | |||||||
Taxes payable consisted of the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 7,309 | $ | 13,579 | ||||
Income taxes payable | 20 | 68 | ||||||
Misc. taxes | 2,387 | 3,027 | ||||||
Totals | $ | 9,716 | $ | 16,674 | ||||
Earnings_Loss_per_share_Tables
Earnings (Loss) per share (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The computation of earnings (loss) per share is as follows: | ||||||||
(in thousands, except per share data) | ||||||||
For the three | For the three | |||||||
months ended | months ended | |||||||
September 30, 2013 | September 30, 2012 | |||||||
Income (loss) attributable to holders of common stock | $ | 3,801 | $ | -41,598 | ||||
Basic and diluted weighted average number of common shares outstanding | 55,141 | 54,466 | ||||||
Earnings (loss) per share | ||||||||
Basic and diluted | $ | 0.07 | $ | -0.76 | ||||
For the nine | For the nine | |||||||
months ended | months ended | |||||||
September 30, 2013 | September 30, 2012 | |||||||
Loss attributable to holders of common stock | $ | -32,914 | $ | -102,759 | ||||
Basic and diluted weighted average number of common shares outstanding | 54,976 | 54,946 | ||||||
Loss per share | ||||||||
Basic and diluted | $ | -0.6 | $ | -1.87 | ||||
Related_party_transactions_and1
Related party transactions and balances (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||||
The carrying value of assets acquired under the capital lease consists of the following: | ||||||||||
September 30, 2013 | December 31, 2012 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 603,248 | $ | 587,334 | ||||||
Less: accumulated depreciation | -69,248 | -46,497 | ||||||||
Carrying value of leased assets | $ | 534,000 | $ | 540,837 | ||||||
Schedule Of Related Party Sales [Table Text Block] | ' | |||||||||
The following chart summarized sales to related parties for the three and nine months ended September 30, 2013 and 2012. | ||||||||||
Three months ended | Three months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 63,793 | $ | 123,631 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group** | - | 16,998 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 1,081 | - | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 85 | 12,480 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 19,866 | 7,599 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 979 | 25 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 9 | 11,392 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 1,782 | 20,758 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 7,951 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | - | |||||||
Total | $ | 95,546 | $ | 192,883 | ||||||
**Long Steel Group has the ability to significantly influence the operating and financial decisions of the entity through equity ownership either directly or through key employees, commercial contractual terms, or the ability to assign management personnel. | ||||||||||
Nine months ended | Nine months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 226,754 | $ | 360,820 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | 72 | 147,847 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 21,491 | 41,433 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 15,681 | 43,015 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 56,545 | 34,132 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 2,390 | 634 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 2,122 | 31,485 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 33,075 | 37,965 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 22,577 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | 1,493 | |||||||
Total | $ | 380,707 | $ | 698,824 | ||||||
Schedule Of Related Party Purchases [Table Text Block] | ' | |||||||||
The following charts summarize purchases from related parties for the three and nine months ended September 30, 2013 and 2012. | ||||||||||
Three months ended | Three months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 101,606 | $ | 123,637 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 31,331 | 47,487 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 1,181 | 16,674 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 1,568 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 1 | 2,257 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 10,529 | 10,322 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 1,726 | 1,049 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 64 | 91 | |||||||
Total | $ | 146,438 | $ | 203,085 | ||||||
Nine months ended | Nine months ended | |||||||||
Name of related parties | Relationship | September 30, 2013 | September 30, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 376,104 | $ | 453,947 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 148,322 | 195,861 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 13,678 | 83,251 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 53 | 5,332 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 212 | 4,417 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 28,618 | 24,347 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 6,635 | 3,653 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 300 | 305 | |||||||
Total | $ | 573,922 | $ | 771,113 | ||||||
Schedule Of Related Party Transactions Loan Receivables From Related Party [Table Text Block] | ' | |||||||||
Loans receivable – related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | - | $ | 63,319 | |||||
Teamlink Investment Co., Ltd | Partially owned by CEO* through indirect shareholding | 4,540 | 6,000 | |||||||
Total | $ | 4,540 | $ | 69,319 | ||||||
*The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | ||||||||||
Schedule Of Related Party Transactions, Accounts Receivables From Related Party [Table Text Block] | ' | |||||||||
Accounts receivables – related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,834 | $ | 10,409 | |||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 2,017 | |||||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 18 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,227 | 2,435 | |||||||
Others | 172 | 87 | ||||||||
Total | $ | 3,252 | $ | 14,966 | ||||||
Schedule Of Related Party Transactions, Other Receivables Related Parties [Table Text Block] | ' | |||||||||
Other receivables – related parties: | ||||||||||
Other receivables - related parties are those nontrade receivables arising from transactions between the Company and its related parties, such as advances or payments made on behalf of these related parties. | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 561 | $ | 301 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 44,811 | 65,981 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 1,228 | 1,195 | |||||||
Tianjin Dazhan Industry Co, Ltd | Partially owned by CEO through indirect shareholding | 489 | 476 | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 3,834 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 578 | 429 | |||||||
Total | $ | 51,501 | $ | 68,382 | ||||||
Schedule Of Related Party Transactions, Advances On Inventory Purchase From Related Parties [Table Text Block] | ' | |||||||||
Advances on inventory purchase – related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,377 | $ | 1,367 | |||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 6,254 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 12,805 | - | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 9,210 | 41,316 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 3,733 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 21 | - | |||||||
Total | $ | 29,667 | $ | 46,416 | ||||||
Schedule Of Related Party Transactions, Accounts Payable Related Parties [Table Text Block] | ' | |||||||||
Accounts payable - related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 60,463 | $ | 58,661 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 100,579 | 91,511 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | - | 5,652 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 954 | 3 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 7,838 | 5,278 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 1 | 13,919 | |||||||
Henan Xinmi Kanghua Fire Refractory Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 722 | 1,146 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 1,149 | 875 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | - | 52 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 553 | 335 | |||||||
Total | $ | 172,259 | $ | 177,432 | ||||||
Schedule Of Related Party Transactions, Short Term Loans Related Parties [Table Text Block] | ' | |||||||||
Short-term loans - related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | - | $ | 35,839 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 33,580 | - | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 1,547 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 10,916 | 19,549 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | - | 21,397 | |||||||
Beijing Shenhua Xinyuan Metal Materials Co., Ltd | Partially owned by CEO through indirect shareholding | 1,395 | 1,359 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 1,451 | 1,413 | |||||||
Total | $ | 48,889 | $ | 79,557 | ||||||
Schedule Of Related Party Transactions Current Maturities Of Long Term Loans Related Parties [Table Text Block] | ' | |||||||||
Current maturities of long-term loans – related parties | ||||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 47,896 | $ | 54,885 | |||||
Total | $ | 47,896 | $ | 54,885 | ||||||
Schedule Of Related Party Transactions, Other Payable Related Parties [Table Text Block] | ' | |||||||||
Other payables – related parties: | ||||||||||
Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the Group. | ||||||||||
September 30, | December 31, | |||||||||
Name of related parties | Relationship | 2013 | 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 876 | $ | 2,770 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 51,919 | 60,180 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 44,173 | - | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 911 | 836 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 254 | 141 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | - | 4,761 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 4,020 | 3,695 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 1,566 | - | |||||||
Victory Energy Resource Co., Ltd | Partially owned by CEO through indirect shareholding | 1,375 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 1,059 | 642 | |||||||
Total | $ | 106,153 | $ | 73,025 | ||||||
Schedule Of Related Party Transactions, Customer Deposits Related Parties [Table Text Block] | ' | |||||||||
Customer deposits – related parties: | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | $ | 10 | $ | 4,869 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | - | 2,163 | |||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | - | 90 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 13,600 | 8,864 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 679 | 5,615 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | - | 353 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 223 | 44 | |||||||
Total | $ | 14,512 | $ | 21,998 | ||||||
Schedule Of Related Party Transactions, Deposits Due To Sales Representatives [Table Text Block] | ' | |||||||||
Deposits due to sales representatives – related parties | ||||||||||
Name of related parties | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | $ | 587 | $ | 619 | |||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 635 | 619 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 587 | - | |||||||
Total | $ | 1,809 | $ | 1,238 | ||||||
Schedule Of Related Party Transactions, Long Term Loans Related Parties [Table Text Block] | ' | |||||||||
Long-term loans – related party: | ||||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 24,450 | $ | 38,088 | |||||
Total | $ | 24,450 | $ | 38,088 | ||||||
Schedule Of Related Party Transactions Long Term Other Payable [Table Text Block] | ' | |||||||||
Long-term other payable – related party: | ||||||||||
Long-term other payable – related party is a nontrade payable arising from a transaction between the Company and its related party, Shaanxi Steel, in which the Company received an advance from Shaanxi Steel to make payment to a third party for a construction project. | ||||||||||
Name of related party | Relationship | September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | - | $ | 43,008 | |||||
Total | $ | - | $ | 43,008 | ||||||
Schedule Of Related Party Transactions, Deferred Lease Income [Table Text Block] | ' | |||||||||
Deferred lease income | ||||||||||
September 30, 2013 | December 31, 2012 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 77,199 | $ | 78,524 | ||||||
Less: Lease income realized | -1,613 | -2,119 | ||||||||
Exchange rate effect | 2,072 | 794 | ||||||||
Ending balance | 77,658 | 77,199 | ||||||||
Current portion | -2,178 | -2,120 | ||||||||
Noncurrent portion | $ | 75,480 | $ | 75,079 | ||||||
Shaanxi Coal and Shaanxi Steel [Member] | ' | |||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||||
The following is an analysis of the leased assets under the capital lease: | ||||||||||
September 30, 2013 | December 31, 2012 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 603,248 | $ | 587,334 | ||||||
Less: accumulated depreciation | -69,248 | -46,497 | ||||||||
Carrying value of leased assets | $ | 534,000 | $ | 540,837 | ||||||
Commitment_and_contingencies_T
Commitment and contingencies (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||
Total operating lease commitments for rental of offices, buildings, equipment and land use rights of the Company’s PRC subsidiaries as of September 30, 2013 is as follows: | |||||||
Year ending September 30, | Minimum lease payment | ||||||
(in thousands) | |||||||
(Unaudited) | |||||||
2014 | $ | 1,445 | |||||
2015 | 680 | ||||||
2016 | 559 | ||||||
2017 | 559 | ||||||
2018 | 559 | ||||||
Years after | 20,185 | ||||||
Total minimum payments required | $ | 23,987 | |||||
Schedule of Guarantor Obligations [Table Text Block] | ' | ||||||
As of September 30, 2013, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $304.6 million. | |||||||
Guarantee | |||||||
Nature of guarantee | amount | Guaranty Due Date | |||||
(In thousands) | |||||||
Line of credit | $ | 178,931 | Various from October 2013 to August 2015 | ||||
Three-party financing agreements | 42,315 | Various from October 2013 to January 2014 | |||||
Confirming storage | 19,951 | Various from December 2013 to September 2014 | |||||
Financing by the rights of goods delivery in future | 63,374 | Various from December 2013 to March 2015 | |||||
Total | $ | 304,571 | |||||
Schedule Of Parties Being Guaranteed [Table Text Block] | ' | ||||||
Guarantee | |||||||
Name of parties being guaranteed | amount | Guaranty Due Date | |||||
(In thousands) | |||||||
Long Steel Group | $ | 74,819 | Various from October 2013 to August 2015 | ||||
Hancheng Haiyan Coking Co., Ltd | 42,315 | Various from October 2013 to January 2014 | |||||
Long Steel Group Fuping Rolling Steel Co., Ltd | 11,271 | Various from January to June 2014 | |||||
Yichang Zhongyi Industrial Co., Ltd | 25,428 | Jun-14 | |||||
Xi’an Laisheng Logistics Co., Ltd | 4,303 | May-14 | |||||
Xi'an Kaiyuan Steel Sales Co., Ltd | 3,733 | Various from November 2013 to January 2014 | |||||
Shaanxi Hongan Material Co., Ltd. | 5,379 | Various from October to December 2013 | |||||
Shaanxi Anlin Logistics Co., Ltd | 7,726 | Various from December 2013 to April 2014 | |||||
Chengdu Zhongyi Steel Co., Ltd | 3,977 | Dec-13 | |||||
Shaanxi Huatai Huineng Group Co., Ltd | 24,450 | Mar-14 | |||||
Hancheng Sanli Furnace Burden Co., Ltd. | 16,300 | Mar-15 | |||||
Tianjin Dazhan Industry Co., Ltd | 44,238 | Various from January 2014 to March 2015 | |||||
Tianjin Hengying Trading Co., Ltd | 19,637 | Various from January to July 2014 | |||||
Tianjin Qiu Steel Pipe Industry Co., Ltd | 11,410 | Apr-14 | |||||
Jinmen Desheng Metallurty Co., Ltd | 3,260 | Aug-14 | |||||
Shaanxi Baolong Industry Co., Ltd | 2,347 | Nov-13 | |||||
Shaanxi Longan Industrial Development Co., Ltd | 3,978 | Nov-13 | |||||
Total | $ | 304,571 | |||||
Segments_Tables
Segments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
The following represents results of division operations for three months ended September 30, 2013 and 2012: | ||||||||
(In thousands) | ||||||||
Sales: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 606,444 | $ | 708,974 | ||||
Maoming Hengda | 252 | 1,134 | ||||||
Baotou Steel Pipe Joint Venture | 2,921 | 1,322 | ||||||
General Steel (China) & Tianwu Joint Venture | 4,236 | 129,341 | ||||||
Total sales | 613,853 | 840,771 | ||||||
Interdivision sales | -3,758 | -129,346 | ||||||
Consolidated sales | $ | 610,095 | $ | 711,425 | ||||
Gross profit (loss): | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 8,122 | $ | -18,417 | ||||
Maoming Hengda | -57 | -761 | ||||||
Baotou Steel | 160 | 120 | ||||||
General Steel (China) & Tianwu Joint Venture | 6 | 5,462 | ||||||
Total gross profit (loss) | 8,231 | -13,596 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 8,231 | $ | -13,596 | ||||
Income (loss) from operations: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 32,967 | $ | -37,000 | ||||
Maoming Hengda | -719 | -1,062 | ||||||
Baotou Steel | 20 | 630 | ||||||
General Steel (China) & Tianwu Joint Venture | -695 | 2,399 | ||||||
Total income (loss) from operations | 31,572 | -35,033 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -1,177 | -1,350 | ||||||
Consolidated income (loss) from operations | $ | 30,395 | $ | -36,383 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 8,284 | $ | -39,494 | ||||
Maoming Hengda | -694 | -1,073 | ||||||
Baotou Steel | 16 | 403 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,689 | -26 | ||||||
Total net income (loss) attributable to General Steel Holdings, Inc. | 4,917 | -40,190 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -1,116 | -1,408 | ||||||
Consolidated net income (loss) attributable to General Steel Holdings, Inc. | $ | 3,801 | $ | -41,598 | ||||
Depreciation, amortization and depletion: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 21,014 | $ | 19,915 | ||||
Maoming Hengda | 307 | 451 | ||||||
Baotou Steel | 62 | 52 | ||||||
General Steel (China) & Tianwu Joint Venture | 505 | 790 | ||||||
Consolidated depreciation, amortization and depletion | $ | 21,888 | $ | 21,208 | ||||
Finance/interest expenses: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 23,252 | $ | 33,989 | ||||
Maoming Hengda | 1 | 35 | ||||||
Baotou Steel | - | 127 | ||||||
General Steel (China) & Tianwu Joint Venture | 2,249 | 2,467 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 1 | -3 | ||||||
Consolidated interest expenses | $ | 25,503 | $ | 36,615 | ||||
Capital expenditures: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 16,455 | $ | 3,259 | ||||
Maoming Hengda | - | 23 | ||||||
Baotou Steel | - | 1 | ||||||
General Steel (China) & Tianwu Joint Venture | - | 15 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 16,455 | $ | 3,298 | ||||
The following represents results of division operations for nine months ended September 30, 2013 and 2012: | ||||||||
(In thousands) | ||||||||
Sales: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 1,903,933 | $ | 2,126,556 | ||||
Maoming Hengda | 3,124 | 4,003 | ||||||
Baotou Steel Pipe Joint Venture | 3,902 | 3,923 | ||||||
General Steel (China) & Tianwu Joint Venture | 58,416 | 141,668 | ||||||
Total sales | 1,969,375 | 2,276,150 | ||||||
Interdivision sales | -54,338 | -136,001 | ||||||
Consolidated sales | $ | 1,915,037 | $ | 2,140,149 | ||||
Gross profit (loss): | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | -23,704 | $ | 12,628 | ||||
Maoming Hengda | 188 | -1,174 | ||||||
Baotou Steel | 249 | 193 | ||||||
General Steel (China) & Tianwu Joint Venture | 29 | 8,431 | ||||||
Total gross profit (loss) | -23,238 | 20,078 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | -23,238 | $ | 20,078 | ||||
Income (loss) from operations: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 32,998 | $ | -40,071 | ||||
Maoming Hengda | -1,741 | -2,498 | ||||||
Baotou Steel | -285 | 224 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,293 | 4,878 | ||||||
Total income (loss) from operations | 28,679 | -37,467 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -3,504 | -4,003 | ||||||
Consolidated income (loss) from operations | $ | 25,175 | $ | -41,470 | ||||
Net loss attributable to General Steel Holdings, Inc.: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | -18,335 | $ | -92,974 | ||||
Maoming Hengda | -1,681 | -2,393 | ||||||
Baotou Steel | -227 | -263 | ||||||
General Steel (China) & Tianwu Joint Venture | -9,373 | -3,079 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -29,616 | -98,709 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -3,298 | -4,050 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -32,914 | $ | -102,759 | ||||
Depreciation, amortization and depletion: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 62,295 | $ | 58,573 | ||||
Maoming Hengda | 933 | 1,447 | ||||||
Baotou Steel | 185 | 134 | ||||||
General Steel (China) & Tianwu Joint Venture | 1,542 | 2,384 | ||||||
Consolidated depreciation, amortization and depletion | $ | 64,955 | $ | 62,538 | ||||
Finance/interest expenses: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 73,424 | $ | 129,683 | ||||
Maoming Hengda | 1 | 47 | ||||||
Baotou Steel | - | 381 | ||||||
General Steel (China) & Tianwu Joint Venture | 7,927 | 8,819 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 3 | -1 | ||||||
Consolidated interest expenses | $ | 81,355 | $ | 138,929 | ||||
Capital expenditures: | 2013 | 2012 | ||||||
Longmen Joint Venture | $ | 60,461 | $ | 19,604 | ||||
Maoming Hengda | 2 | 38 | ||||||
Baotou Steel | 8 | 6 | ||||||
General Steel (China) & Tianwu Joint Venture | 3 | 18 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 60,474 | $ | 19,666 | ||||
Total Assets as of: | September 30, 2013 | December 31, 2012 | ||||||
Longmen Joint Venture | $ | 2,537,952 | $ | 2,513,206 | ||||
Maoming Hengda | 29,340 | 29,687 | ||||||
Baotou Steel Pipe Joint Venture | 5,116 | 5,186 | ||||||
General Steel (China) & Tianwu Joint Venture | 178,844 | 152,965 | ||||||
Interdivision assets | -84,880 | -57,436 | ||||||
Reconciling item (2) | 5,654 | 7,074 | ||||||
Total Assets | $ | 2,672,026 | $ | 2,650,682 | ||||
-1 | Reconciling item represents the unallocated income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three and nine months ended September 30, 2013 and 2012. | |||||||
-2 | Reconciling item represents assets held at General Steel Holdings, Inc., General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel as of September 30, 2013 and December 31, 2012. | |||||||
Background_Details_Textual
Background (Details Textual) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 05, 2002 | Sep. 30, 2013 | Apr. 29, 2011 | Sep. 30, 2013 | Dec. 31, 2011 | Apr. 29, 2011 | Apr. 29, 2011 |
General Steel Investment Co Ltd [Member] | General Steel Investment Co Ltd [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | ||
USD ($) | CNY | ||||||||
Equity Method Investment, Ownership Percentage | ' | 100.00% | 100.00% | 60.00% | 60.00% | ' | ' | ' | ' |
Iron and Steel Making Facilities | ' | ' | ' | ' | ' | ' | ' | $603.20 | 3,700 |
Unified Management Agreement, Percentage Of Pretax Profit | ' | ' | ' | 60.00% | ' | 40.00% | 40.00% | ' | ' |
Unified Management Agreement, Economic Interest | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Unified Management Agreement, Economic Interest Decreased | 36.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Overall Capacity | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_significant_account3
Summary of significant accounting policies (Details) | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Aug. 05, 2002 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 29, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | |
General Steel Investment Co., Ltd. [Member] | General Steel Investment Co., Ltd. [Member] | General Steel (China) Co., Ltd. ("General Steel (China)") [Member] | Baotou Steel - General Steel Special Steel Pipe Joint Venture Co., Ltd. [Member] | Yangpu Shengtong Investment Co., Ltd. [Member] | Tianjin Qiu Steel Investment Co., Ltd. ("Qiu Steel") [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Maoming Hengda Steel Company, Ltd. ("Maoming Hengda") [Member] | Tianwu General Steel Material Trading Co., Ltd ("Tianwu Joint Venture") [Member] | |
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 100.00% | 80.00% | 99.10% | 98.70% | 60.00% | 60.00% | 99.00% | 60.00% |
Entity Incorporation, State Country Name | 'British Virgin Islands | ' | 'PRC | 'PRC | 'PRC | 'PRC | 'PRC | ' | 'PRC | 'PRC |
Summary_of_significant_account4
Summary of significant accounting policies (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | $1,373,967 | $1,407,045 |
Plant and equipment, net | 1,250,542 | 1,167,836 |
TOTAL ASSETS | 2,672,026 | 2,650,682 |
Total liabilities | -3,145,136 | -3,086,691 |
Variable Interest Entities and Subsidiary [Member] | ' | ' |
Current assets | 1,253,672 | 1,285,967 |
Plant and equipment, net | 1,239,805 | 1,154,811 |
Other noncurrent assets | 44,475 | 72,428 |
TOTAL ASSETS | 2,537,952 | 2,513,206 |
Total liabilities | -3,006,938 | -2,943,761 |
Net liabilities | ($468,986) | ($430,555) |
Summary_of_significant_account5
Summary of significant accounting policies (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current liabilities: | ' | ' |
Short term notes payable | $987,988 | $983,813 |
Accounts payable | 495,488 | 352,052 |
Accounts payable - related parties | 172,259 | 177,432 |
Short term loans - bank | 254,929 | 147,124 |
Short term loans - others | 130,170 | 147,323 |
Short term loans - related parties | 48,889 | 79,557 |
Current maturities of long-term loans - related party | 47,896 | 54,885 |
Other payables and accrued liabilities | 52,272 | 54,589 |
Other payables - related parties | 106,153 | 73,025 |
Customer deposits | 95,695 | 125,890 |
Customer deposits - related parties | 14,512 | 21,998 |
Deposit due to sales representatives | 28,184 | 33,870 |
Taxes payable | 9,716 | 16,674 |
Deferred lease income | 2,178 | 2,120 |
TOTAL CURRENT LIABILITIES | 2,448,138 | 2,271,590 |
Non-current liabilities: | ' | ' |
Long term loans - related parties | 24,450 | 38,088 |
Long-term other payable - related party | 0 | 43,008 |
Deferred lease income - noncurrent | 75,480 | 75,079 |
Capital lease obligations | 354,576 | 330,099 |
Profit sharing liability | 241,090 | 328,827 |
Other noncurrent liabilities | 1,402 | 0 |
TOTAL NON-CURRENT LIABILITIES | 696,998 | 815,101 |
TOTAL LIABILITIES | 3,145,136 | 3,086,691 |
Variable Interest Entities and Subsidiary [Member] | ' | ' |
Current liabilities: | ' | ' |
Short term notes payable | 950,498 | 971,117 |
Accounts payable | 466,631 | 324,563 |
Accounts payable - related parties | 171,759 | 177,160 |
Short term loans - bank | 215,955 | 114,935 |
Short term loans - others | 123,974 | 141,290 |
Short term loans - related parties | 42,613 | 35,839 |
Current maturities of long-term loans - related party | 56,372 | 54,885 |
Other payables and accrued liabilities | 43,978 | 29,769 |
Other payables - related parties | 96,901 | 64,941 |
Customer deposits | 94,767 | 109,120 |
Customer deposits - related parties | 14,512 | 21,998 |
Deposit due to sales representatives | 28,184 | 33,870 |
Deposit due to sales representatives - related parties | 1,809 | 1,238 |
Taxes payable | 8,258 | 15,339 |
Deferred lease income | 2,178 | 2,120 |
Intercompany payable to be eliminated | 0 | 30,476 |
TOTAL CURRENT LIABILITIES | 2,318,416 | 2,128,660 |
Non-current liabilities: | ' | ' |
Long term loans - related parties | 15,974 | 38,088 |
Long-term other payable - related party | 0 | 43,008 |
Deferred lease income - noncurrent | 75,480 | 75,079 |
Capital lease obligations | 354,576 | 330,099 |
Profit sharing liability | 241,090 | 328,827 |
Other noncurrent liabilities | 1,402 | 0 |
TOTAL NON-CURRENT LIABILITIES | 688,522 | 815,101 |
TOTAL LIABILITIES | $3,006,938 | $2,943,761 |
Summary_of_significant_account6
Summary of significant accounting policies (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales | $514,549 | $518,542 | $1,534,330 | $1,441,325 |
Gross profit (loss) | 8,231 | -13,596 | -23,238 | 20,078 |
Income (loss) from operations | 30,395 | -36,383 | 25,175 | -41,470 |
Net income (loss) attributable to controlling interest | 3,801 | -41,598 | -32,914 | -102,759 |
Variable Interest Entities and Subsidiary [Member] | ' | ' | ' | ' |
Sales | 606,444 | 708,974 | 1,903,933 | 2,126,556 |
Gross profit (loss) | 8,122 | -18,417 | -23,704 | 12,628 |
Income (loss) from operations | 32,967 | -37,000 | 32,998 | -40,071 |
Net income (loss) attributable to controlling interest | $8,284 | ($39,494) | ($18,335) | ($92,974) |
Summary_of_significant_account7
Summary of significant accounting policies (Details 4) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Amount of Line of Credit | $110.80 | |
Bank Of China [Member] | ' | |
Amount of Line of Credit | 6.5 | |
Repayment Date | 'August 25, 2014 to October 26, 2014 | |
China Everbright Bank [Member] | ' | |
Amount of Line of Credit | 48.9 | |
Repayment Date | 8-Oct-14 | |
Bank Of Xian [Member] | ' | |
Amount of Line of Credit | 32.6 | |
Repayment Date | 9-Oct-14 | |
Bank Of Jinzhou [Member] | ' | |
Amount of Line of Credit | $22.80 | |
Repayment Date | 'September 27, 2014* | [1] |
[1] | Management expects the line of credit will be extended after September 27, 2014. |
Summary_of_significant_account8
Summary of significant accounting policies (Details 5) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Financing Amount | 110.8 |
Company A [Member] | ' |
Financing period covered | 'January 6, 2013 – January 5, 2015 |
Company B [Member] | ' |
Financing period covered | 'January 6 2013 – November 7 2015 |
Company C [Member] | ' |
Financing period covered | 'October 1, 2013 – March 31, 2015 |
Vendor Financing [Member] | Company A [Member] | ' |
Financing Amount | 163 |
Vendor Financing [Member] | Company B [Member] | ' |
Financing Amount | 163 |
Vendor Financing [Member] | Company C [Member] | ' |
Financing Amount | 489 |
Summary_of_significant_account9
Summary of significant accounting policies (Details 6) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Financing Amount | 77.4 |
Company E [Member] | ' |
Financing period covered | 'January 7, 2013 – January 6, 2015 |
Company F [Member] | ' |
Financing period covered | 'January 7, 2013 – January 6, 2015 |
Company G [Member] | ' |
Financing period covered | 'January 7, 2013 – January 6, 2015 |
Company H [Member] | ' |
Financing Amount | 16.3 |
Financing period covered | 'November 7 2013 – November 7 2015 |
Company I [Member] | ' |
Financing Amount | 16.3 |
Financing period covered | 'November 6 2013 – November 6 2015 |
Other Financing [Member] | Company E [Member] | ' |
Financing Amount | 16.3 |
Other Financing [Member] | Company F [Member] | ' |
Financing Amount | 21.2 |
Other Financing [Member] | Company G [Member] | ' |
Financing Amount | 7.3 |
Recovered_Sheet1
Summary of significant accounting policies (Details 7) (Scenario, Forecast [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Scenario, Forecast [Member] | ' |
Current liabilities over current assets (excluding non-cash items) as of September 30, 2013 (unaudited) | ($1,072) |
Projected cash financing and outflows: | ' |
Cash provided by line of credit from banks | 110.8 |
Cash provided by vendor financing | 815 |
Cash provided by financing sales | 81.5 |
Cash provided by other financing | 77.4 |
Cash provided by sales representatives | 30 |
Cash projected to be used in operations in the twelve months ended September 30, 2014 | -28.6 |
Net projected change in cash for the twelve months ended September 30, 2014 | $14.10 |
Recovered_Sheet2
Summary of significant accounting policies (Details 8) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Derivative liabilities | $0 | $1 | ' |
Profit sharing liability | 241,090 | 328,827 | ' |
Total | 241,090 | 328,828 | 303,243 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Derivative liabilities | ' | 0 | ' |
Profit sharing liability | 0 | 0 | ' |
Total | 0 | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Derivative liabilities | ' | 1 | ' |
Profit sharing liability | 0 | 0 | ' |
Total | 0 | 1 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Derivative liabilities | ' | 0 | ' |
Profit sharing liability | 241,090 | 328,827 | ' |
Total | $241,090 | $328,827 | ' |
Recovered_Sheet3
Summary of significant accounting policies (Details 9) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Beginning balance | ' | ' | $328,828 | $303,243 | $303,243 |
Change in fair value of profit sharing liability | -41,800 | ' | -107,877 | ' | 0 |
Current period interest expense accreted | ' | ' | 12,440 | ' | 22,499 |
Change of derivative liabilities charged to earnings | 0 | -55 | 1 | -48 | 9 |
Exchange rate effect | ' | ' | 7,698 | ' | 3,077 |
Ending balance | $241,090 | ' | $241,090 | ' | $328,828 |
Recovered_Sheet4
Summary of significant accounting policies (Details 10) | 9 Months Ended |
Sep. 30, 2013 | |
Buildings and Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment, Useful Life | '40 years |
Buildings and Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Machinery [Member] | Maximum [Member] | ' |
Property, Plant and Equipment, Useful Life | '30 years |
Machinery [Member] | Minimum [Member] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Machinery and equipment under capital lease [Member] | ' |
Property, Plant and Equipment, Useful Life | '20 years |
Other equipment [Member] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Transportation Equipment [Member] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Recovered_Sheet5
Summary of significant accounting policies (Details 11) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
General Steel (China) [Member] | ' |
Original Cost | $3,867 |
Expires on | '2050 & 2053 |
Longmen Joint Venture [Member] | ' |
Original Cost | 24,226 |
Expires on | '2048 & 2052 |
Maoming Hengda [Member] | ' |
Original Cost | $2,705 |
Expires on | '2054 |
Recovered_Sheet6
Summary of significant accounting policies (Details 12) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Net investment | $1,161 | $1,166 |
Xian Delong Powder Engineering Materials Co Ltd [Member] | ' | ' |
Year acquired | '2007 | ' |
Net investment | $1,161 | $1,166 |
Owned Percentage | 24.10% | 24.10% |
Recovered_Sheet7
Summary of significant accounting policies (Details Textual) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 24, 2009 | Dec. 31, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 29, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2007 | Dec. 31, 2007 | Aug. 05, 2002 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 01, 2012 | Mar. 31, 2012 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | Criteria One [Member] | Criteria Two [Member] | Maximum [Member] | Minimum [Member] | Mining Rights [Member] | Mining Rights [Member] | Five Customers [Member] | Five Customers [Member] | Five Customers [Member] | Five Customers [Member] | Five Customers [Member] | Five Customers [Member] | One Customer [Member] | Five Suppliers [Member] | Five Suppliers [Member] | One Suppliers [Member] | Company E [Member] | Company A [Member] | Company B [Member] | Company D [Member] | Company F [Member] | Company G [Member] | Company H [Member] | Company C [Member] | Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Yuxin Trading Co Ltd [Member] | Yuteng Trading Co Ltd [Member] | Hualong [Member] | Hualong [Member] | Hualong [Member] | Tongxing [Member] | Huatianyulong [Member] | General Steel Investment Co Ltd [Member] | General Steel Investment Co Ltd [Member] | General Steel Investment Co Ltd [Member] | General Steel Investment Co Ltd [Member] | General Steel Investment Co Ltd [Member] | Maoming Hengda Steel Company Ltd [Member] | Maoming Hengda Steel Company Ltd [Member] | Yangpu Shengtong Investment Co Ltd [Member] | Tianjin Qiu Steel Investment Co Ltd [Member] | Tianwu General Steel Material Trading Co Ltd [Member] | Hancheng Tongxing Metallurgy Co Ltd [Member] | Hancheng Tongxing Metallurgy Co Ltd [Member] | ||||
USD ($) | USD ($) | USD ($) | CNY | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Company D [Member] | Shareholder One [Member] | Shareholder Two [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 60.00% | ' | ' | 100.00% | 100.00% | 36.00% | 34.67% | 29.33% | 22.76% | 50.00% | 100.00% | 100.00% | ' | ' | 100.00% | 99.00% | 99.00% | 99.10% | 98.70% | 60.00% | ' | ' |
Working Capital | ' | $1,100,000,000 | ' | ' | ' | ' | ' | $1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt To Equity Ratio | ' | 6.6 | 6.6 | ' | ' | ' | ' | 6.6 | 6.6 | ' | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,900,000 | 64,300,000 | 51,900,000 | 24,500,000 | 14,000,000 | 18,900,000 | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vendor Financing, Variable Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Amount Utilized | ' | 61,900,000 | ' | ' | ' | ' | ' | 61,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Sales Agreement, Minimum Advance For Rebar Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents Including Restricted Cash | ' | 467,900,000 | ' | ' | ' | ' | ' | 467,900,000 | ' | ' | ' | 369,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash In Bank, Insurance Coverage | ' | 200,000 | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Purchases Major Supplier Percentage | ' | 15.30% | 15.30% | ' | 10.00% | 10.00% | ' | 29.30% | 29.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.40% | 39.60% | ' | ' | ' | ' | 10.00% | 15.90% | 47.80% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Accounts Payable Major Supplier Percentage | ' | 10.00% | 10.00% | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.90% | 33.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | 10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Exchange Translation Rate Balance Sheet Items | ' | ' | 6.13 | ' | ' | ' | ' | ' | 6.13 | ' | ' | ' | 6.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Exchange Average Translation Rate | ' | ' | 6.16 | ' | ' | 6.33 | ' | ' | 6.21 | ' | 6.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,154,958 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Modified Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Issued Increased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,871 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Issued During Period | 2,777,778 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Profit Sharing Liability | ' | ' | ' | 40.00% | ' | ' | ' | 40.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Salvage Value, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Criteria For Determination Of Nature Of Lease | ' | ' | ' | ' | ' | ' | ' | 'The Company assesses all significant leases for purposes of classification as either operating or capital. At lease inception, if the lease meets any of the four following criteria, the Company will classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | 'The Company assesses all significant leases for purposes of classification as either operating or capital. At lease inception, if the lease meets any of the four following criteria, the Company will classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Ownership, Significant Influence | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | ' | 50,000 | ' | ' | 40,000 | ' | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Of Equity Interest Percentage | ' | ' | ' | ' | ' | ' | 22.76% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,500,000 | ' |
Noncontrolling Interest in Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,500,000 | ' |
Sale Of Equity,Non Cash Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' |
Sale Of Equity Non Cash Consideration Dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' |
Sale Of Equity, Cash Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' |
Deconsolidation of a subsidiary as a reduction to paid-in-capital | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 2,972,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 158,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 318,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Notes Receivable Interest Income | ' | 9,600,000 | ' | ' | 16,300,000 | ' | ' | 26,900,000 | ' | 65,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.50% | 27.20% | 23.40% | 34.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite lived Intangible Asset Acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,200,000 | 148,600,000 | 3,900,000 | 23,700,000 | ' | 2,700,000 | 16,600,000 | ' | ' | ' | ' | ' |
Profit Sharing Liability Fair Value Criteria | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'If we would reduce the projected bank borrowings rate by 1.0% and other factors remained unchanged, our profit sharing liability as of the beginning of the period ended September 30, 2013 would have been $254.9 million and we would reducethe gainfrom the change in the fair value of profit sharing liabilities by $32.9 million. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit Sharing Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 254,900,000 | 214,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain Loss On Change In Fair Value Of Profit Sharing Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,900,000 | 8,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Initial Measurement And Recognition Of Profit Sharing Liability | ' | 41,800,000 | ' | ' | ' | ' | ' | 107,877,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Account Receivable To Customer | ' | $1,400,000 | ' | ' | $10,400,000 | ' | ' | $1,400,000 | ' | $10,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_receivable_related_parti2
Loans receivable - related parties (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans receivable - related parties | $4,540 | $69,319 |
Long Steel Group [Member] | ' | ' |
Loans receivable - related parties | 0 | 63,319 |
Teamlink Investment Co., Ltd [Member] | ' | ' |
Loans receivable - related parties | $4,540 | $6,000 |
Loans_receivable_related_parti3
Loans receivable - related parties (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income Related Party | $0.10 | $0 | $0.20 | $1.80 |
Teamlink Investment Co Ltd [Member] | ' | ' | ' | ' |
Loans Receivable Maturity Date | ' | ' | 'December 2013, June 2014, and July 2014 | ' |
Loans Receivable Interest Rate Stated Percentage | 4.75% | ' | 4.75% | ' |
Accounts_receivable_including_2
Accounts receivable (including related parties), net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accounts receivable | $9,729 | $8,062 | ' |
Less: allowance for doubtful accounts | -1,152 | -1,367 | -2,023 |
Accounts receivable - related parties | 3,252 | 14,966 | ' |
Net accounts receivable | $11,829 | $21,661 | ' |
Accounts_receivable_including_3
Accounts receivable (including related parties), net (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Beginning balance | $1,367 | $2,023 |
Charge to expense | 0 | 433 |
Less: recovery | -249 | -1,109 |
Exchange rate effect | 34 | 20 |
Ending balance | $1,152 | $1,367 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Supplies | $23,302 | $23,123 | ' |
Raw materials | 138,951 | 141,503 | ' |
Finished goods | 22,527 | 57,630 | ' |
Less: allowance for inventory valuation | -7,397 | -9,585 | -38,143 |
Total inventories | $177,383 | $212,671 | ' |
Inventories_Details_1
Inventories (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Beginning balance | $9,585 | $38,143 |
Addition | 7,305 | 9,582 |
Less: write-off | -9,722 | -38,519 |
Exchange rate effect | 229 | 379 |
Ending balance | $7,397 | $9,585 |
Advances_on_inventory_purchase1
Advances on inventory purchases (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances On Inventory Purchases Including Related Parties | $109.50 | $126.10 |
Plant_and_equipment_net_Detail
Plant and equipment, net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Buildings and improvements | $253,621 | $214,661 |
Machinery | 616,813 | 573,572 |
Machinery under capital lease | 603,248 | 587,334 |
Transportation and other equipment | 22,085 | 20,274 |
Construction in progress | 58,111 | 4,645 |
Subtotal | 1,553,878 | 1,400,486 |
Less: accumulated depreciation | -303,336 | -232,650 |
Total | $1,250,542 | $1,167,836 |
Plant_and_equipment_net_Detail1
Plant and equipment, net (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | 1.2 million tons high-strength steel production line [Member] | Iron-making system dust removing equipment [Member] | Drainage system [Member] | Factory wall repair [Member] | Gas pipe repair [Member] | Office buildings [Member] | Equipment updates [Member] | 5 blast furnace construction [Member] | Reconstruction Of Miscellaneous Factory Buildings [Member] | Project materials [Member] | Others [Member] | ||
Construction in progress | $58,111 | $4,645 | $32,268 | $3,307 | $499 | $241 | $121 | $1,336 | $7,381 | $208 | $690 | $2,154 | $9,906 |
Construction Completion Date | ' | ' | 31-Dec-13 | 30-Nov-13 | 30-Nov-13 | 30-Nov-13 | 30-Nov-13 | 30-Nov-13 | 30-Nov-13 | 30-Sep-14 | 31-Jan-14 | ' | ' |
Plant_and_equipment_net_Detail2
Plant and equipment, net (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Machinery | $603,248 | $587,334 |
Less: accumulated depreciation | -69,248 | -46,497 |
Carrying value of leased assets | $534,000 | $540,837 |
Plant_and_equipment_net_Detail3
Plant and equipment, net (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | Assets Held under Capital Leases [Member] | Assets Held under Capital Leases [Member] | Assets Held under Capital Leases [Member] | Assets Held under Capital Leases [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | |||||||
Depreciation | $21.60 | $20.80 | $64.10 | $61.40 | ' | ' | $7.10 | $7 | $21.20 | $20.90 |
Impairment of plant and equipment | ' | ' | ' | ' | $20.20 | 127.2 | ' | ' | ' | ' |
Lease Expiration Date | ' | ' | 30-Apr-31 | ' | ' | ' | ' | ' | ' | ' |
Intangible_assets_net_Details
Intangible assets, net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Gross | $33,988 | $33,062 |
Less: Accumulated amortization | -10,060 | -8,996 |
Intangible assets, net | 23,928 | 24,066 |
Land use rights [Member] | ' | ' |
Finite-Lived Intangible Assets, Gross | 30,798 | 29,986 |
Less: Accumulated amortization | -8,387 | -7,577 |
Mining right [Member] | ' | ' |
Finite-Lived Intangible Assets, Gross | 2,448 | 2,384 |
Less: Accumulated amortization | -1,144 | -993 |
Software [Member] | ' | ' |
Finite-Lived Intangible Assets, Gross | 742 | 692 |
Less: Accumulated amortization | ($529) | ($426) |
Intangible_assets_net_Details_
Intangible assets, net (Details 1) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Estimated amortization and depletion expenses, June 30, 2014 | $1,082 |
Estimated amortization and depletion expenses, June 30, 2015 | 1,082 |
Estimated amortization and depletion expenses, June 30, 2016 | 1,082 |
Estimated amortization and depletion expenses, June 30, 2017 | 1,082 |
Estimated amortization and depletion expenses, June 30, 2018 | 1,082 |
Estimated amortization and depletion expenses, Thereafter | 18,518 |
Estimated amortization and depletion expenses, Total | 23,928 |
Gross carrying amount, June 30, 2014 | 22,846 |
Gross carrying amount, June 30, 2015 | 21,764 |
Gross carrying amount, June 30, 2016 | 20,682 |
Gross carrying amount, June 30, 2017 | 19,600 |
Gross carrying amount, June 30, 2018 | 18,518 |
Gross carrying amount, Thereafter | $0 |
Intangible_assets_net_Details_1
Intangible assets, net (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '33 years 8 months 12 days | ' |
Amortization of Intangible Assets | $0.20 | $0.30 | $0.70 | $0.90 |
Depletion | $0.02 | $0.10 | $0.10 | $0.20 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short term notes payable | $987,988 | $983,813 |
General Steel China Notes Payable To China Agricultural Bank [Member] | ' | ' |
Short term notes payable | 37,490 | 12,696 |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | ' | ' |
Short term notes payable | $950,498 | $971,117 |
Debt_Details_1
Debt (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short term loans - bank | $254,929 | $147,124 |
General Steel China Loans From Various Banks In China [Member] | ' | ' |
Short term loans - bank | 38,973 | 32,189 |
Longmen Joint Venture Loans from various banks in China [Member] | ' | ' |
Short term loans - bank | $215,956 | $114,935 |
Debt_Details_2
Debt (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short term loans - others | $130,170 | $147,323 |
Longmen Joint Venture Loans from various unrelated companies and individuals [Member] | ' | ' |
Short term loans - others | 33,294 | 25,324 |
Longmen Joint Venture Loans from financing sales [Member] | ' | ' |
Short term loans - others | 90,680 | 115,966 |
Maoming Hengda Loans from one unrelated parties and one related party [Member] | ' | ' |
Short term loans - others | $6,196 | $6,033 |
Debt_Details_3
Debt (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short term loans - related parties | $48,889 | $79,557 |
Baotou Steel Loans From Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Short term loans - related parties | 3,430 | 4,133 |
General Steel China Loans From Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Short term loans - related parties | 0 | 15,416 |
General Steel China Loans From Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Short term loans - related parties | 0 | 21,397 |
General Steel China Loans From Beijing Shenhua Xinyuan Metal Materials Co Ltd [Member] | ' | ' |
Short term loans - related parties | 1,395 | 1,359 |
General Steel China Loans From Yangpu Capital Automobile [Member] | ' | ' |
Short term loans - related parties | 1,451 | 1,413 |
Longmen Joint Venture Loan from Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' |
Short term loans - related parties | 33,580 | 0 |
Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' |
Short term loans - related parties | $9,033 | $35,839 |
Debt_Details_4
Debt (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current maturities of long-term loans - related party | $47,896 | $54,885 |
Long-term loans - related party | 24,450 | 38,088 |
Longmen Joint Venture Loans from Shaanxi Steel Group [Member] | ' | ' |
Current maturities of long-term loans - related party | $72,346 | $92,973 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Percentage Of Transaction Fee | ' | ' | 0.05% | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | $405.80 | ' | $405.80 | ' | $322.70 |
Restricted Notes Receivable Guarantee For Notes Payable | 237.2 | ' | 237.2 | ' | 345.8 |
Debt To Asset Ratio Maximum | 20.00% | ' | 20.00% | ' | 85.00% |
Debt To Asset Ratio | 117.70% | ' | 117.70% | ' | 116.40% |
Short Term Borrowings, Default | 6.4 | ' | 6.4 | ' | 12.7 |
Financing Sales | 166.2 | 307.1 | 519.5 | 600.8 | ' |
Financial Services Costs | 1.1 | 2.1 | 4.2 | 6.8 | ' |
Interest Costs Capitalized | 1.3 | 0.2 | 2.1 | 0.6 | ' |
Interest Expense, Debt | 15.5 | 36.6 | 54.5 | 138.9 | ' |
General Steel China Notes Payable To Various Banks In China [Member] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 24.5 | ' | 24.5 | ' | 6.3 |
Debt Instrument Maturity Dates | ' | ' | 'various dates from October 2013 to March 2014 | ' | ' |
Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt Instrument Maturity Dates | ' | ' | 'various dates from October 2013 to February 2014 | ' | ' |
Debt, Weighted Average Interest Rate | 5.20% | ' | 5.20% | ' | 6.00% |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 381.3 | ' | 381.3 | ' | 237.2 |
Restricted Notes Receivable Guarantee For Notes Payable | 316.4 | ' | 316.4 | ' | 345.8 |
Debt Instrument Maturity Dates | ' | ' | 'various dates from October 2013 to August 2014 | ' | ' |
Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | ' | ' | ' | ' | ' |
Debt Instrument Maturity Dates | ' | ' | 'November 2015 | ' | ' |
Debt, Weighted Average Interest Rate | 5.60% | ' | 5.60% | ' | 5.90% |
Baotou Steel Loans From Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 10.00% | ' | 10.00% | ' | ' |
General Steel China Loans From Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 10.00% | ' | 10.00% | ' | ' |
General Steel China Loans From Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 10.00% | ' | 10.00% | ' | ' |
General Steel China Loans From Beijing Shenhua Xinyuan Metal Materials Co Ltd [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 10.00% | ' | 10.00% | ' | ' |
General Steel China Loans From Yangpu Capital Automobile [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 10.00% | ' | 10.00% | ' | ' |
Longmen Joint Venture Loan from Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | 31-Dec-13 | ' | ' |
Debt, Weighted Average Interest Rate | 7.00% | ' | 7.00% | ' | ' |
Longmen Joint Venture Loans from various banks in China [Member] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | $120 | ' | $120 | ' | $76 |
Debt Instrument Maturity Dates | ' | ' | 'various dates from November 2013 to August 2014 | ' | ' |
Debt, Weighted Average Interest Rate | 6.50% | ' | 6.50% | ' | 6.80% |
General Steel China Loans From Various Banks In China [Member] | ' | ' | ' | ' | ' |
Debt Instrument Maturity Dates | ' | ' | 'various dates from December 2013 to September 2014 | ' | ' |
Debt, Weighted Average Interest Rate | 7.20% | ' | 7.20% | ' | 7.60% |
Maximum [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | ' | ' | ' | ' | 12.00% |
Maximum [Member] | Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 5.90% | ' | 5.90% | ' | 5.90% |
Maximum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | ' | ' | ' | ' | 5.90% |
Minimum [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 4.70% | ' | 4.70% | ' | ' |
Minimum [Member] | Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 4.20% | ' | 4.20% | ' | ' |
Minimum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 4.20% | ' | 4.20% | ' | ' |
Customer_deposits_Details_Text
Customer deposits (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Customer Deposits Including Related Parties | $110,200,000 | $147,900,000 |
Customer deposits - related parties | $14,512,000 | $21,998,000 |
Deposits_due_to_sales_represen1
Deposits due to sales representatives (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deposits Due To Sales Representative Including Related Parties | $30 | $35.10 |
Convertible_notes_and_derivati2
Convertible notes and derivative liabilities (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Expected volatility | 86.00% |
Expected dividend yield | 0.00% |
Risk-free interest rate | 0.08% |
Expected lives (in years) | '4 months 10 days |
Market price | $0.99 |
Strike price | $5 |
Convertible_notes_and_derivati3
Convertible notes and derivative liabilities (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Outstanding Beginning Balance | $3,900,871 | $6,678,649 |
Granted | 0 | 0 |
Forfeited / expired | -3,900,871 | -2,777,778 |
Exercised | 0 | 0 |
Outstanding Ending Balance | $0 | $3,900,871 |
Convertible_notes_and_derivati4
Convertible notes and derivative liabilities (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2007 |
Debt Instrument, Face Amount | ' | ' | $40,000,000 |
Derivative liabilities | $0 | $1,000 | ' |
Supplemental_disclosure_of_cas1
Supplemental disclosure of cash flow information (Details Textual) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Paid, Net | $11.50 | $20.20 |
Income Taxes Paid | 0.3 | 0.1 |
Minority Interest Ownership By Parent Carrying Value | ' | 8 |
Dividend Receivables Value | 0.2 | 0.1 |
Disposal Of Equipment Value | 1 | ' |
Conversion Of Accounts and Other Payable To Short Term Loan | ' | 48 |
Repayment For Advances On Inventory Purchases | 119.9 | 29.9 |
Inventory Productions, Equipment Conversion | 1 | ' |
Inventory Utilized In Plant and Equipment Construction | 37.3 | ' |
Repayment Of Accounts Payable Related Party | 64.2 | 0 |
Reclassification Of Inventory Purchases Refundable Advances Related Parties To Other Receivables Related Parties | 3.8 | ' |
Construction in Progress Expenditures Incurred but Not yet Paid | 18.7 | ' |
Tongxing [Member] | ' | ' |
Land Use Rights Carrying Value | ' | 3.6 |
Settlement With Payable In Cash | ' | 0.3 |
Transfer Of Dividend Receivable To Two Individuals | ' | $0.90 |
Long Steel Group [Member] | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | 22.76% |
Deferred_lease_income_Details_
Deferred lease income (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 30, 2010 | Dec. 30, 2010 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||||
Deferred Revenue Leases Reimbursement For Dismantled Assets | ' | ' | ' | ' | ' | ' | $11,400,000 | 70,100,000 | ' | ' | ' | ' |
Deferred Revenue Leases Reimbursement For Loss Of Efficiency | ' | ' | ' | ' | ' | ' | 29,800,000 | 183,100,000 | ' | ' | ' | ' |
Deferred Revenue Leases Reimbursement For Trial Production Costs | ' | ' | ' | ' | ' | ' | ' | ' | 14,600,000 | 89,300,000 | 14,600,000 | 89,500,000 |
Deferred Revenue Leases Deferred Depreciation Cost Free Use Period | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | 43,900,000 | ' | ' |
Deferred Revenue Leases Lease Income Realized | 542,000 | 528,000 | 1,613,000 | 1,588,000 | 2,119,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue, Leases, Net | 77,658,000 | ' | 77,658,000 | ' | 77,199,000 | 78,524,000 | ' | ' | ' | ' | ' | ' |
Deferred Revenue, Leases, Current | $2,178,000 | ' | $2,178,000 | ' | $2,120,000 | ' | ' | ' | ' | ' | ' | ' |
Capital_lease_obligation_Detai
Capital lease obligation (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Capital Lease Obligation Minimum Lease Payments, Year ended September 30, 2014 | $0 |
Capital Lease Obligation Minimum Lease Payments, Year ended September 30, 2015 | 126,557 |
Capital Lease Obligation Minimum Lease Payments, Year ended September 30, 2016 | 28,654 |
Capital Lease Obligation Minimum Lease Payments, Year ended September 30, 2017 | 28,654 |
Capital Lease Obligation Minimum Lease Payments, Year ended September 30, 2018 | 28,654 |
Capital Lease Obligation Minimum Lease Payments, Thereafter | 360,567 |
Capital Lease Obligation Minimum Lease Payments, Total minimum lease payments | 573,086 |
Capital Lease Obligation Minimum Lease Payments, Less: amounts representing interest | -218,510 |
Capital Lease Obligation Minimum Lease Payments, Ending balance | 354,576 |
Capital Lease Obligation Profit (Loss) Sharing, Year ended September 30, 2014 | 0 |
Capital Lease Obligation Profit (Loss) Sharing, Year ended September 30, 2015 | 0 |
Capital Lease Obligation Profit (Loss) Sharing, Year ended September 30, 2016 | 0 |
Capital Lease Obligation Profit (Loss) Sharing, Year ended September 30, 2017 | 0 |
Capital Lease Obligation Profit (Loss) Sharing, Year ended September 30, 2018 | 0 |
Capital Lease Obligation Profit (Loss) Sharing, Thereafter | 650,586 |
Capital Lease Obligation Minimum Lease Payments, Total minimum lease payments | 650,586 |
Capital Lease Obligation Profit (Loss) Sharing, Less: amounts representing interest | -409,496 |
Capital Lease Obligation Profit (Loss) Sharing, Ending balance | 241,090 |
Total, Year ended September 30, 2014 | 0 |
Total, Year ended September 30, 2015 | 126,557 |
Total, Year ended September 30, 2016 | 28,654 |
Total, Year ended September 30, 2017 | 28,654 |
Total, Year ended September 30, 2018 | 28,654 |
Total, Thereafter | 1,011,153 |
Total, Total minimum lease payments | 1,223,672 |
Total, Less: amounts representing interest | -628,006 |
Total, Ending balance | $595,666 |
Capital_lease_obligation_Detai1
Capital lease obligation (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | USD ($) | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | |
USD ($) | CNY | ||||||
Capital Lease Agreement Term | ' | ' | ' | ' | ' | '20 years | '20 years |
Classification Of Lease, Percentage Base | ' | ' | ' | ' | ' | 75.00% | 75.00% |
Unified Management Agreement, Percentage Of Pretax Profit | ' | ' | ' | ' | 40.00% | 40.00% | 40.00% |
Unified Management Agreement, Cost Of Asset | ' | ' | ' | ' | ' | $2.30 | 14.6 |
Interest Expense On Minimum Lease Payments | 5.1 | 5.1 | 15.3 | 15.5 | ' | ' | ' |
Interest Expense On Profit Sharing Liability | $2.60 | $5.60 | $12.40 | $16.90 | ' | ' | ' |
Other_income_expense_Details_T
Other income (expense) (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Lease income | $542 | $528 | $1,613 | $1,588 | $2,119 |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Current | $25 | $100 | $201 | $510 |
Deferred | 0 | 0 | 0 | 169 |
Total provision for income taxes | $25 | $100 | $201 | $679 |
Taxes_Details_1
Taxes (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Beginning balance | $72,891 | $47,703 |
Current period addition | 12,776 | 25,180 |
Current period reversal | -857 | 0 |
Deconsolidation of Tongxing | 0 | -216 |
Exchange difference | 2,125 | 224 |
Ending balance | $86,935 | $72,891 |
Taxes_Details_2
Taxes (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
VAT taxes payable | $7,309 | $13,579 |
Income taxes payable | 20 | 68 |
Misc. taxes | 2,387 | 3,027 |
Totals | $9,716 | $16,674 |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Preferential Tax Rate | ' | ' | 15.00% | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $436,900,000 | ' | $436,900,000 | ' | ' | ' |
Percentage Of Deferred Tax Asset | 100.00% | ' | 100.00% | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | ' | ' | 0 | ' | ' | ' |
Value Added Tax Receivable | 3,100,000 | ' | 3,100,000 | ' | 4,200,000 | ' |
Value Added Tax On Sales | 160,500,000 | 209,700,000 | 513,700,000 | 620,600,000 | ' | ' |
Value Added Tax On Purchases | 156,200,000 | 206,700,000 | 494,400,000 | 594,100,000 | ' | ' |
Deferred Tax Assets, Valuation Allowance | 86,935,000 | ' | 86,935,000 | ' | 72,891,000 | 47,703,000 |
Tax Initiative Extension Period | ' | ' | '10 years | ' | ' | ' |
Operating Loss Carryforwards, Date Expiration | ' | ' | 'The Group’s losses carried forward of $436.9 million will begin to expire in 2014. | ' | ' | ' |
UNITED STATES | ' | ' | ' | ' | ' | ' |
Percentage Of Deferred Tax Asset | 100.00% | ' | 100.00% | ' | ' | ' |
Net operating losses carried forward | 1,600,000 | ' | 1,600,000 | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | 500,000 | ' | 500,000 | ' | ' | ' |
Operating Loss Carryforwards, Date Expiration | ' | ' | 'The net operating loss carry forwards for United States income taxes amounted to $1.6 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2026 through 2032. | ' | ' | ' |
Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | ' | ' | 25.00% | ' | ' | ' |
Subsidiaries [Member] | UNITED STATES | ' | ' | ' | ' | ' | ' |
Net operating losses carried forward | $100,000 | ' | $100,000 | ' | ' | ' |
Subsidiaries [Member] | Longmen Joint Venture [Member] | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | ' | ' | 15.00% | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | ' | 17.00% | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | ' | 13.00% | ' | ' | ' |
Earnings_Loss_per_share_Detail
Earnings (Loss) per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income (loss) attributable to holders of common stock | $3,801 | ($41,598) | ($32,914) | ($102,759) |
Basic and diluted weighted average number of common shares outstanding | 55,141 | 54,466 | 54,976 | 54,946 |
Earnings (loss) per share | ' | ' | ' | ' |
Basic and diluted | $0.07 | ($0.76) | ($0.60) | ($1.87) |
Earnings_Loss_per_share_Detail1
Earnings (Loss) per share (Details Textual) | Sep. 30, 2012 |
Warrants Exercisable | 3,900,871 |
Related_party_transactions_and2
Related party transactions and balances (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Machinery | $603,248 | $587,334 |
Less: accumulated depreciation | -69,248 | -46,497 |
Carrying value of leased assets | 534,000 | 540,837 |
Shaanxi Coal and Shaanxi Steel [Member] | ' | ' |
Machinery | 603,248 | 587,334 |
Less: accumulated depreciation | -69,248 | -46,497 |
Carrying value of leased assets | $534,000 | $540,837 |
Related_party_transactions_and3
Related party transactions and balances (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue from Related Parties | $95,546 | $192,883 | $380,707 | $698,824 |
Long Steel Group [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Revenue from Related Parties | 63,793 | 123,631 | 226,754 | 360,820 |
Sichuan Yutai Trading Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group** | ' | 'Significant influence by Long Steel Group | ' |
Revenue from Related Parties | 0 | 16,998 | 72 | 147,847 |
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' | 'Significant influence by Long Steel Group | ' |
Revenue from Related Parties | 1,081 | 0 | 21,491 | 41,433 |
Shaanxi Haiyan Trade Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' | 'Significant influence by Long Steel Group | ' |
Revenue from Related Parties | 85 | 12,480 | 15,681 | 43,015 |
Shaanxi Shenganda Trading Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' | 'Significant influence by Long Steel Group | ' |
Revenue from Related Parties | 19,866 | 7,599 | 56,545 | 34,132 |
Shaanxi Steel [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' | 'Majority shareholder of Long Steel Group | ' |
Revenue from Related Parties | 979 | 25 | 2,390 | 634 |
Shaanxi Long Steel Group Baoji Steel Rolling Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Subsidiary of Long Steel Group | ' | 'Subsidiary of Long Steel Group | ' |
Revenue from Related Parties | 9 | 11,392 | 2,122 | 31,485 |
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Investee of Long Steel Group | ' | 'Investee of Long Steel Group | ' |
Revenue from Related Parties | 1,782 | 20,758 | 33,075 | 37,965 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | ' | 'Shareholder of Shaanxi Steel | ' |
Revenue from Related Parties | 7,951 | 0 | 22,577 | 0 |
Others [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' | 'Entities either owned or have significant influence by our affiliates or management | ' |
Revenue from Related Parties | $0 | $0 | $0 | $1,493 |
Related_party_transactions_and4
Related party transactions and balances (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transaction, Purchases from Related Party | $146,438 | $203,085 | $573,922 | $771,113 |
Long Steel Group [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Related Party Transaction, Purchases from Related Party | 101,606 | 123,637 | 376,104 | 453,947 |
Hancheng Haiyan Coking Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | ' | 'Noncontrolling shareholder of Long Steel Group | ' |
Related Party Transaction, Purchases from Related Party | 31,331 | 47,487 | 148,322 | 195,861 |
Xi'an Pinghe Metallurgical Raw Material Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | ' | 'Noncontrolling shareholder of Long Steel Group | ' |
Related Party Transaction, Purchases from Related Party | 1,181 | 16,674 | 13,678 | 83,251 |
Shaanxi Long Steel Group Baoji Steel Rolling Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Subsidiary of Long Steel Group | ' | 'Subsidiary of Long Steel Group | ' |
Related Party Transaction, Purchases from Related Party | 0 | 1,568 | 53 | 5,332 |
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Investee of Long Steel Group | ' | 'Investee of Long Steel Group | ' |
Related Party Transaction, Purchases from Related Party | 1 | 2,257 | 212 | 4,417 |
Shaanxi Huafu New Energy Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Significant influence by the Long Steel Group | ' | 'Significant influence by the Long Steel Group | ' |
Related Party Transaction, Purchases from Related Party | 10,529 | 10,322 | 28,618 | 24,347 |
Beijing Daishang Trading Co Ltd [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' |
Related Party Transaction, Purchases from Related Party | 1,726 | 1,049 | 6,635 | 3,653 |
Others [Member] | ' | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' | 'Entities either owned or have significant influence by our affiliates or management | ' |
Related Party Transaction, Purchases from Related Party | $64 | $91 | $300 | $305 |
Related_party_transactions_and5
Related party transactions and balances (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loans receivable - related parties | $4,540 | $4,540 | $69,319 | |
Long Steel Group [Member] | ' | ' | ' | |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' | |
Loans receivable - related parties | 0 | 0 | 63,319 | |
Teamlink Investment Co Ltd [Member] | ' | ' | ' | |
Related Party Relationship | ' | 'Partially owned by CEO* through indirect shareholding | [1] | ' |
Loans receivable - related parties | $4,540 | $4,540 | $6,000 | |
[1] | The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. |
Related_party_transactions_and6
Related party transactions and balances (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts Receivable, Related Parties, Current | $3,252 | $3,252 | $14,966 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Accounts Receivable, Related Parties, Current | 1,834 | 1,834 | 10,409 |
Shaanxi Long Steel Group Baoji Steel Rolling Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Subsidiary of Long Steel Group | 'Subsidiary of Long Steel Group | ' |
Accounts Receivable, Related Parties, Current | 0 | 0 | 2,017 |
Tianjin Daqiuzhuang Steel Plates [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Accounts Receivable, Related Parties, Current | 19 | 19 | 18 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Accounts Receivable, Related Parties, Current | 1,227 | 1,227 | 2,435 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Accounts Receivable, Related Parties, Current | $172 | $172 | $87 |
Related_party_transactions_and7
Related party transactions and balances (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Other receivables - related parties | $51,501 | $51,501 | $68,382 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Other receivables - related parties | 561 | 561 | 301 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Other receivables - related parties | 44,811 | 44,811 | 65,981 |
Tianjin General Quigang Pipe Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 1,228 | 1,228 | 1,195 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 489 | 489 | 476 |
Maoming Shengze Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 3,834 | 3,834 | 0 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Other receivables - related parties | $578 | $578 | $429 |
Related_party_transactions_and8
Related party transactions and balances (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Advances on inventory purchase - related parties | $29,667 | $29,667 | $46,416 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Advances on inventory purchase - related parties | 1,377 | 1,377 | 1,367 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 6,254 | 6,254 | 0 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 12,805 | 12,805 | 0 |
Tianjin General Qiugang Pipe Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 9,210 | 9,210 | 41,316 |
Maoming Shengze Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 0 | 0 | 3,733 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Advances on inventory purchase - related parties | $21 | $21 | $0 |
Related_party_transactions_and9
Related party transactions and balances (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts payable - related parties | $172,259 | $172,259 | $177,432 |
Hancheng Haiyan Coking Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | 'Noncontrolling shareholder of Long Steel Group | ' |
Accounts payable - related parties | 60,463 | 60,463 | 58,661 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Accounts payable - related parties | 100,579 | 100,579 | 91,511 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | 'Shareholder of Shaanxi Steel | ' |
Accounts payable - related parties | 0 | 0 | 5,652 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | 954 | 954 | 3 |
Xi'an Pinghe Metallurgical Raw Material Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | 'Noncontrolling shareholder of Long Steel Group | ' |
Accounts payable - related parties | 7,838 | 7,838 | 5,278 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | 1 | 1 | 13,919 |
Henan Xinmi Kanghua Fire Refractory Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' |
Accounts payable - related parties | 722 | 722 | 1,146 |
Beijing Daishang Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' |
Accounts payable - related parties | 1,149 | 1,149 | 875 |
Tianjin General Qiugang Pipe Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | 0 | 0 | 52 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Accounts payable - related parties | $553 | $553 | $335 |
Recovered_Sheet8
Related party transactions and balances (Details 8) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Short term loans - related parties | $48,889 | $48,889 | $79,557 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Short term loans - related parties | 0 | 0 | 35,839 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | 'Shareholder of Shaanxi Steel | ' |
Short term loans - related parties | 33,580 | 33,580 | 0 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Short term loans - related parties | 1,547 | 1,547 | 0 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | 10,916 | 10,916 | 19,549 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | 0 | 0 | 21,397 |
Beijing Shenhua Xinyuan Metal Materials Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | 1,395 | 1,395 | 1,359 |
Yangpu Capital Automobile [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | $1,451 | $1,451 | $1,413 |
Recovered_Sheet9
Related party transactions and balances (Details 9) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Current maturities of long-term loans - related party | $47,896 | $47,896 | $54,885 |
Shaanxi Steel [Member] | ' | ' | ' |
Current maturities of long-term loans - related party | $47,896 | $47,896 | $54,885 |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Recovered_Sheet10
Related party transactions and balances (Details 10) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Other payables - related parties | $106,153 | $106,153 | $73,025 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 876 | 876 | 2,770 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Other payables - related parties | 51,919 | 51,919 | 60,180 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Other payables - related parties | 44,173 | 44,173 | 0 |
Wendlar Investment Management Group Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Common control under CEO | ' |
Other payables - related parties | 911 | 911 | 836 |
Yangpu Capital Automobile [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 254 | 254 | 141 |
Xi'an Pinghe Metallurgical Raw Material Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | 'Noncontrolling shareholder of Long Steel Group | ' |
Other payables - related parties | 0 | 0 | 4,761 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 4,020 | 4,020 | 3,695 |
Maoming Shengze Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 1,566 | 1,566 | 0 |
Victory Energy Resource Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 1,375 | 1,375 | 0 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Other payables - related parties | $1,059 | $1,059 | $642 |
Recovered_Sheet11
Related party transactions and balances (Details 11) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Customer deposits - related parties | $14,512 | $14,512 | $21,998 |
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | 10 | 10 | 4,869 |
Sichuan Yutai Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group** | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | 0 | 0 | 2,163 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | ' | 'Partially owned by CEO through indirect shareholding | ' |
Customer deposits - related parties | 0 | 0 | 90 |
Long Steel Group [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Customer deposits - related parties | 13,600 | 13,600 | 8,864 |
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Investee of Long Steel Group | 'Investee of Long Steel Group | ' |
Customer deposits - related parties | 679 | 679 | 5,615 |
Shaanxi Shenganda Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | 0 | 0 | 353 |
Others [Member] | ' | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | 'Entities either owned or have significant influence by our affiliates or management | ' |
Customer deposits - related parties | $223 | $223 | $44 |
Recovered_Sheet12
Related party transactions and balances (Details 12) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Deposit due to sales representatives - related parties | $1,809 | $1,809 | $1,238 |
Hancheng Haiyan Coking Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | 'Noncontrolling shareholder of Long Steel Group | ' |
Deposit due to sales representatives - related parties | 587 | 587 | 619 |
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Investee of Long Steel Group | 'Investee of Long Steel Group | ' |
Deposit due to sales representatives - related parties | 635 | 635 | 619 |
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | 'Significant influence by Long Steel Group | ' |
Deposit due to sales representatives - related parties | $587 | $587 | $0 |
Recovered_Sheet13
Related party transactions and balances (Details 13) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Long-term loans - related party | $24,450 | $24,450 | $38,088 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Long-term loans - related party | $24,450 | $24,450 | $38,088 |
Recovered_Sheet14
Related party transactions and balances (Details 14) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Long-term other receivable | $0 | $0 | $43,008 |
Shaanxi Steel [Member] | ' | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | 'Majority shareholder of Long Steel Group | ' |
Long-term other receivable | $0 | $0 | $43,008 |
Recovered_Sheet15
Related party transactions and balances (Details 15) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Beginning balance | ' | ' | $77,199 | $78,524 | $78,524 |
Less: Lease income realized | -542 | -528 | -1,613 | -1,588 | -2,119 |
Exchange rate effect | ' | ' | 2,072 | ' | 794 |
Ending balance | 77,658 | ' | 77,658 | ' | 77,199 |
Current portion | -2,178 | ' | -2,178 | ' | -2,120 |
Noncurrent portion | $75,480 | ' | $75,480 | ' | $75,079 |
Recovered_Sheet16
Related party transactions and balances (Details Textual) | 9 Months Ended | 24 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 30, 2010 | Dec. 30, 2010 |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Tianjin Daqiuzhuang Steel Plates Co Ltd [Member] | Tianjin Daqiuzhuang Steel Plates Co Ltd [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | ||||||
Capital Lease, Monthly Base Rental | $0 | $1.60 | $0.20 | 1.7 | ' | ' | ' | ' | ' | ' | ' |
Related Party Loans Secured | 139.9 | ' | ' | ' | 118 | ' | ' | ' | ' | ' | ' |
Capital Leases, Income Statement, Lease Revenue | ' | ' | ' | ' | ' | $0.50 | $0.50 | $1.60 | $1.60 | $34.40 | 215.8 |
Equity_Details_Textual
Equity (Details Textual) | Sep. 30, 2013 | Apr. 29, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Issue One [Member] | Issue Two [Member] | Issue Three [Member] | Issue Three [Member] | Issue Three [Member] | Issue Three [Member] | Issue Three [Member] | Issue Three [Member] | Issue Three [Member] | Issue Four [Member] |
USD ($) | USD ($) | USD ($) | CNY | Longmen Joint Venture [Member] | Tianwu Joint Venture [Member] | Tianwu Joint Venture [Member] | Tianjin Material and Equipment Group Corporation [Member] | Tianjin Material and Equipment Group Corporation [Member] | USD ($) | |||
USD ($) | CNY | USD ($) | CNY | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | ' | ' | 174,900 | 163,150 | ' | ' | ' | ' | ' | ' | ' | 163,150 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | $1.01 | $1.02 | ' | ' | ' | ' | ' | ' | ' | $0.88 |
Stock Issued During Period, Value, Other | ' | ' | ' | ' | $27 | 168 | ' | $45.10 | 280 | $18 | 112 | ' |
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' |
Retirement_plan_Details_Textua
Retirement plan (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Contribution Plan Employer Matching Contribution Percent Criteria One | ' | ' | 20.00% | ' |
Defined Contribution Plan Employer Matching Contribution Percent Criteria Two | ' | ' | 12.00% | ' |
Pension Expense | $2.30 | $1.70 | $6.40 | $5.50 |
Defined Contribution Plan Employer Contribution Description | ' | ' | 'The Company’s entities in China are required to contribute based on the higher of 20% of the employees’ monthly base salary or 12% of the minimum social average salary of the city where the facilities are located. | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | ' | ' | 8.00% | ' |
Statutory_reserves_Details_Tex
Statutory reserves (Details Textual) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Contributions To Statutory Reserve Fund Percentage | 10.00% | ' |
Maximum Percentage Of Reserve Fund Balance | 50.00% | ' |
Minimum Percentage Of Reserve Fund Balance | 25.00% | ' |
Contributions To Special Reserve | $0.70 | $0.90 |
Utilisation Of Special Reserve | $0.40 | $0.90 |
Commitment_and_contingencies_D
Commitment and contingencies (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
2014 | $1,445 |
2015 | 680 |
2016 | 559 |
2017 | 559 |
2018 | 559 |
Years after | 20,185 |
Total minimum payments required | $23,987 |
Commitment_and_contingencies_D1
Commitment and contingencies (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Guarantor Obligations, Current Carrying Value | 304,571 |
Line of credit [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2013 to August 2015 |
Three-party financing agreements [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2013 to January 2014 |
Confirming storage [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from December 2013 to September 2014 |
Financing by the rights of goods delivery in future [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from December 2013 to March 2015 |
Longmen Joint Venture [Member] | ' |
Guarantor Obligations, Current Carrying Value | 304,571 |
Longmen Joint Venture [Member] | Line of credit [Member] | ' |
Guarantor Obligations, Current Carrying Value | 178,931 |
Longmen Joint Venture [Member] | Three-party financing agreements [Member] | ' |
Guarantor Obligations, Current Carrying Value | 42,315 |
Longmen Joint Venture [Member] | Confirming storage [Member] | ' |
Guarantor Obligations, Current Carrying Value | 19,951 |
Longmen Joint Venture [Member] | Financing by the rights of goods delivery in future [Member] | ' |
Guarantor Obligations, Current Carrying Value | 63,374 |
Commitment_and_contingencies_D2
Commitment and contingencies (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Guarantor Obligations, Current Carrying Value | $304,571 |
Yichang Zhongyi Industrial Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'June 2014 |
Guarantor Obligations, Current Carrying Value | 25,428 |
Jinmen Desheng Metallurty Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'August 2014 |
Guarantor Obligations, Current Carrying Value | 3,260 |
Shaanxi Hongan Material Co., Ltd. [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from October to December 2013 |
Guarantor Obligations, Current Carrying Value | 5,379 |
Chengdu Zhongyi Steel Co., Ltd. [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'December 2013 |
Guarantor Obligations, Current Carrying Value | 3,977 |
Shaanxi Huatai Huineng Group, Ltd. [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'March 2014 |
Guarantor Obligations, Current Carrying Value | 24,450 |
Hancheng Sanli Furnace Burden Co., Ltd. [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'March 2015 |
Guarantor Obligations, Current Carrying Value | 16,300 |
Xi'an Kaiyuan Steel Sales Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from November 2013 to January 2014 |
Guarantor Obligations, Current Carrying Value | 3,733 |
Shaanxi Baolong Industry Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'November 2013 |
Guarantor Obligations, Current Carrying Value | 2,347 |
Xiban Laisheng Logistics Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'May 2014 |
Guarantor Obligations, Current Carrying Value | 4,303 |
Shaanxi Anlin Logistics Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from December 2013 to April 2014 |
Guarantor Obligations, Current Carrying Value | 7,726 |
Shaanxi Longan Industrial Development Co., Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'November 2013 |
Guarantor Obligations, Current Carrying Value | 3,978 |
Long Steel Group [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2013 to August 2015 |
Guarantor Obligations, Current Carrying Value | 74,819 |
Hancheng Haiyan Coking Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2013 to January 2014 |
Guarantor Obligations, Current Carrying Value | 42,315 |
Tianjin Dazhan Industry Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from January 2014 to March 2015 |
Guarantor Obligations, Current Carrying Value | 44,238 |
Tianjin Hengying Trading Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from January to July 2014 |
Guarantor Obligations, Current Carrying Value | 19,637 |
Long Steel Group Fuping Rolling Steel Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'Various from January to June 2014 |
Guarantor Obligations, Current Carrying Value | 11,271 |
Tianjin Qiu Steel Pipe Industry Co Ltd [Member] | ' |
Guaranty Obligations, Guaranty Due Date | 'April 2014 |
Guarantor Obligations, Current Carrying Value | $11,410 |
Commitment_and_contingencies_D3
Commitment and contingencies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Leases, Rent Expense | $0.80 | $0.80 | $2.40 | $2.40 |
Contractual Obligation | $211.60 | ' | $211.60 | ' |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment | $613,853 | $840,771 | $1,969,375 | $2,276,150 | ' | |||||
Interdivisional Sales Revenue | -3,758 | -129,346 | -54,338 | -136,001 | ' | |||||
TOTAL SALES | 610,095 | 711,425 | 1,915,037 | 2,140,149 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Segment Reporting Gross Profit Loss | 8,231 | -13,596 | -23,238 | 20,078 | ' | |||||
Interdivision Gross Profit Loss | 0 | 0 | 0 | 0 | ' | |||||
GROSS PROFIT | 8,231 | -13,596 | -23,238 | 20,078 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss From Operations | 31,572 | -35,033 | 28,679 | -37,467 | ' | |||||
Interdivision Income Loss From Operations | 0 | 0 | 0 | 0 | ' | |||||
Unallocated Income Loss From Operations | -1,177 | [1] | -1,350 | [1] | -3,504 | [1] | -4,003 | [1] | ' | |
INCOME (LOSS) FROM OPERATIONS | 30,395 | -36,383 | 25,175 | -41,470 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss Net | 4,917 | -40,190 | -29,616 | -98,709 | ' | |||||
Interdivision Income Loss Net | 0 | 0 | 0 | 0 | ' | |||||
Unallocated Income Loss Net | -1,116 | [1] | -1,408 | [1] | -3,298 | [1] | -4,050 | [1] | ' | |
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | 3,801 | -41,598 | -32,914 | -102,759 | ' | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | |||||
Depreciation, amortization and depletion | 21,888 | 21,208 | 64,955 | 62,538 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Interdivision Interest Expense | 0 | 0 | 0 | 0 | ' | |||||
Unallocated Finance Interest Expense | 1 | [1] | -3 | [1] | 3 | [1] | -1 | [1] | ' | |
Finance/interest expenses | 25,503 | 36,615 | 81,355 | 138,929 | ' | |||||
Capital expenditures: | ' | ' | ' | ' | ' | |||||
Consolidated capital expenditures | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ' | |
Equipment purchase and intangible assets | 16,455 | 3,298 | 75,326 | 15,909 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | -84,880 | ' | -84,880 | ' | -57,436 | |||||
Reconciling item | 5,654 | [2] | ' | 5,654 | [2] | ' | 7,074 | [2] | ||
TOTAL ASSETS | 2,672,026 | ' | 2,672,026 | ' | 2,650,682 | |||||
Longmen Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment | 606,444 | 708,974 | 1,903,933 | 2,126,556 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Segment Reporting Gross Profit Loss | 8,122 | -18,417 | -23,704 | 12,628 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss From Operations | 32,967 | -37,000 | 32,998 | -40,071 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss Net | 8,284 | -39,494 | -18,335 | -92,974 | ' | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | |||||
Depreciation, amortization and depletion | 21,014 | 19,915 | 62,295 | 58,573 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 23,252 | 33,989 | 73,424 | 129,683 | ' | |||||
Capital expenditures: | ' | ' | ' | ' | ' | |||||
Equipment purchase and intangible assets | 16,455 | 3,259 | 60,461 | 19,604 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Segment Reporting Assets | 2,537,952 | ' | 2,537,952 | ' | 2,513,206 | |||||
Maoming Hengda Steel Company Ltd [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment | 252 | 1,134 | 3,124 | 4,003 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Segment Reporting Gross Profit Loss | -57 | -761 | 188 | -1,174 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss From Operations | -719 | -1,062 | -1,741 | -2,498 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss Net | -694 | -1,073 | -1,681 | -2,393 | ' | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | |||||
Depreciation, amortization and depletion | 307 | 451 | 933 | 1,447 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 1 | 35 | 1 | 47 | ' | |||||
Capital expenditures: | ' | ' | ' | ' | ' | |||||
Equipment purchase and intangible assets | 0 | 23 | 2 | 38 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Segment Reporting Assets | 29,340 | ' | 29,340 | ' | 29,687 | |||||
Baotou Steel Pipe Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment | 2,921 | 1,322 | 3,902 | 3,923 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Segment Reporting Gross Profit Loss | 160 | 120 | 249 | 193 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss From Operations | 20 | 630 | -285 | 224 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss Net | 16 | 403 | -227 | -263 | ' | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | |||||
Depreciation, amortization and depletion | 62 | 52 | 185 | 134 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 0 | 127 | 0 | 381 | ' | |||||
Capital expenditures: | ' | ' | ' | ' | ' | |||||
Equipment purchase and intangible assets | 0 | 1 | 8 | 6 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Segment Reporting Assets | 5,116 | ' | 5,116 | ' | 5,186 | |||||
General Steel (China) Tianwu Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment | 4,236 | 129,341 | 58,416 | 141,668 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Segment Reporting Gross Profit Loss | 6 | 5,462 | 29 | 8,431 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss From Operations | -695 | 2,399 | -2,293 | 4,878 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Segment Reporting Income Loss Net | -2,689 | -26 | -9,373 | -3,079 | ' | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | |||||
Depreciation, amortization and depletion | 505 | 790 | 1,542 | 2,384 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 2,249 | 2,467 | 7,927 | 8,819 | ' | |||||
Capital expenditures: | ' | ' | ' | ' | ' | |||||
Equipment purchase and intangible assets | 0 | 15 | 3 | 18 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Segment Reporting Assets | $178,844 | ' | $178,844 | ' | $152,965 | |||||
[1] | Reconciling item represents the unallocated income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three months and six months ended June 30, 2013 and 2012. | |||||||||
[2] | Reconciling item represents assets held at General Steel Holdings, Inc., General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel as of September 30, 2013 and December 31, 2012. |