Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
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 | ' |
Trading Symbol | 'GSI | ' |
Entity Common Stock, Shares Outstanding | ' | 60,922,382 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash | $22,108 | $31,967 |
Restricted cash | 383,250 | 399,333 |
Notes receivable | 66,984 | 60,054 |
Restricted notes receivable | 109,510 | 395,589 |
Loan receivable | 14,625 | 0 |
Loan receivable - related party | 0 | 4,540 |
Accounts receivable, net | 8,481 | 4,078 |
Accounts receivable - related parties | 2,153 | 2,942 |
Other receivables, net | 77,232 | 54,716 |
Other receivables - related parties | 71,980 | 54,106 |
Inventories | 250,017 | 212,921 |
Advances on inventory purchase | 43,374 | 44,897 |
Advances on inventory purchase - related parties | 127,899 | 83,003 |
Prepaid expense and other | 3,943 | 1,388 |
Prepaid taxes | 11,935 | 28,407 |
Short-term investment | 2,763 | 2,783 |
TOTAL CURRENT ASSETS | 1,196,254 | 1,380,724 |
PLANT AND EQUIPMENT, net | 1,516,009 | 1,271,907 |
OTHER ASSETS: | ' | ' |
Advances on equipment purchase | 15,655 | 6,409 |
Investment in unconsolidated entities | 16,742 | 16,943 |
Long-term deferred expense | 496 | 668 |
Intangible assets, net of accumulated amortization | 23,121 | 23,707 |
TOTAL OTHER ASSETS | 56,014 | 47,727 |
TOTAL ASSETS | 2,768,277 | 2,700,358 |
CURRENT LIABILITIES: | ' | ' |
Short term notes payable | 784,323 | 1,017,830 |
Accounts payable | 589,283 | 434,979 |
Accounts payable - related parties | 265,744 | 235,692 |
Short term loans - bank | 248,289 | 301,917 |
Short term loans - others | 60,340 | 62,067 |
Short term loans - related parties | 223,460 | 126,693 |
Current maturities of long-term loans - related party | 67,249 | 53,013 |
Other payables and accrued liabilities | 50,568 | 45,653 |
Other payable - related parties | 101,475 | 94,079 |
Customer deposits | 186,807 | 87,860 |
Customer deposits - related parties | 113,674 | 64,881 |
Deposit due to sales representatives | 29,917 | 24,343 |
Deposit due to sales representatives - related parties | 2,308 | 1,997 |
Taxes payable | 3,930 | 4,628 |
Deferred lease income, current | 2,171 | 2,187 |
Capital lease obligations, current | 6,825 | 4,321 |
TOTAL CURRENT LIABILITIES | 2,736,363 | 2,562,140 |
NON-CURRENT LIABILITIES: | ' | ' |
Long-term loans - related party | 4,875 | 19,644 |
Deferred lease income, noncurrent | 73,077 | 75,257 |
Capital lease obligations, noncurrent | 388,615 | 375,019 |
Profit sharing liability at fair value | 149,363 | 162,295 |
TOTAL NON-CURRENT LIABILITIES | 615,930 | 632,215 |
TOTAL LIABILITIES | 3,352,293 | 3,194,355 |
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, 2014 and December 31, 2013 | 3 | 3 |
Common stock, $0.001 par value, 200,000,000 shares authorized, 58,394,688 and 58,234,688 shares issued, 55,922,382 and 55,762,382 shares outstanding as of September 30, 2014 and December 31, 2013, respectively | 58 | 58 |
Treasury stock, at cost, 2,472,306 shares as of September 30, 2014 and December 31, 2013 | -4,199 | -4,199 |
Paid-in-capital | 107,249 | 106,878 |
Statutory reserves | 6,485 | 6,243 |
Accumulated deficits | -472,871 | -414,798 |
Accumulated other comprehensive income | -189 | 729 |
TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | -363,464 | -305,086 |
NONCONTROLLING INTERESTS | -220,552 | -188,911 |
TOTAL DEFICIENCY | -584,016 | -493,997 |
TOTAL LIABILITIES AND DEFICIENCY | $2,768,277 | $2,700,358 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 58,394,688 | 58,234,688 |
Common stock, shares, outstanding | 55,922,382 | 55,762,382 |
Treasury stock, shares | 2,472,306 | 2,472,306 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
SALES | $456,142 | $514,549 | $1,476,784 | $1,534,330 |
SALES - RELATED PARTIES | 106,680 | 95,546 | 268,262 | 380,707 |
TOTAL SALES | 562,822 | 610,095 | 1,745,046 | 1,915,037 |
COST OF GOODS SOLD | 447,263 | 511,932 | 1,460,018 | 1,550,829 |
COST OF GOODS SOLD - RELATED PARTIES | 105,949 | 89,932 | 269,885 | 387,446 |
TOTAL COST OF GOODS SOLD | 553,212 | 601,864 | 1,729,903 | 1,938,275 |
GROSS PROFIT (LOSS) | 9,610 | 8,231 | 15,143 | -23,238 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | -16,434 | -19,661 | -56,336 | -59,464 |
CHANGE IN FAIR VALUE OF PROFIT SHARING LIABILITY | 14,727 | 39,164 | 11,758 | 95,437 |
INCOME (LOSS) FROM OPERATIONS | 7,903 | 27,734 | -29,435 | 12,735 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Interest income | 2,767 | 2,835 | 10,025 | 8,657 |
Finance/interest expense | -19,422 | -22,842 | -74,736 | -68,915 |
Gain (loss) on disposal of equipment and intangible assets | -21 | 17 | -117 | 113 |
Income from equity investments | 32 | 47 | 99 | 137 |
Foreign currency transaction gain (loss) | 3,146 | 322 | 1,329 | 448 |
Lease income | 542 | 542 | 1,630 | 1,613 |
Other non-operating (expense) income, net | -18 | 770 | 108 | 1,560 |
Other expense, net | -12,974 | -18,309 | -61,662 | -56,387 |
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | -5,071 | 9,425 | -91,097 | -43,652 |
PROVISION FOR INCOME TAXES | ' | ' | ' | ' |
Current | 93 | 25 | 205 | 201 |
Deferred | 0 | 0 | 0 | 0 |
Provision for income taxes | 93 | 25 | 205 | 201 |
NET (LOSS) INCOME | -5,164 | 9,400 | -91,302 | -43,853 |
Less: Net (loss) income attributable to noncontrolling interest | -1,674 | 5,599 | -33,229 | -10,939 |
NET (LOSS) INCOME ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -3,490 | 3,801 | -58,073 | -32,914 |
NET (LOSS) INCOME | -5,164 | 9,400 | -91,302 | -43,853 |
OTHER COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
Foreign currency translation adjustments | -3,232 | -2,547 | 509 | -12,283 |
COMPREHENSIVE (LOSS) INCOME | -8,396 | 6,853 | -90,793 | -56,136 |
Less: Comprehensive (loss) income attributable to noncontrolling interest | -1,701 | 4,782 | -31,802 | -15,508 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | ($6,695) | $2,071 | ($58,991) | ($40,628) |
WEIGHTED AVERAGE NUMBER OF SHARES | ' | ' | ' | ' |
Basic and Diluted (in shares) | 55,878 | 55,141 | 55,845 | 54,976 |
(LOSS) INCOME PER SHARE | ' | ' | ' | ' |
Basic and Diluted (in dollars per share) | ($0.06) | $0.07 | ($1.04) | ($0.60) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($91,302) | ($43,853) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ' | ' |
Depreciation, amortization and depletion | 71,696 | 64,955 |
Change in fair value of derivative liabilities | 0 | -1 |
Change in fair value of profit sharing liability | -11,758 | -95,437 |
(Gain) loss on disposal of equipment and intangible assets | 117 | -113 |
Recovery of doubtful accounts | -324 | -251 |
Reservation of mine maintenance fee | 403 | 315 |
Stock issued for services and compensation | 371 | 692 |
Amortization of deferred financing cost on capital lease | 14,585 | 15,338 |
Income from equity investments | -99 | -137 |
Foreign currency transaction gain | -1,329 | -448 |
Deferred lease income | -1,630 | -1,613 |
Changes in operating assets and liabilities | ' | ' |
Notes receivable | 49,973 | 32,138 |
Accounts receivable | -4,142 | -483 |
Accounts receivable - related parties | 768 | 11,968 |
Other receivables | -22,765 | -3,466 |
Other receivables - related parties | -18,291 | -55,744 |
Inventories | -41,206 | 4,191 |
Advances on inventory purchases | 1,195 | 1,996 |
Advances on inventory purchases - related parties | -45,566 | -27,882 |
Prepaid expense and other | -2,567 | -1,016 |
Long-term deferred expense | 167 | 373 |
Prepaid taxes | 16,286 | 8,250 |
Accounts payable | -50,586 | 113,592 |
Accounts payable - related parties | 17,178 | 54,364 |
Other payables and accrued liabilities | 4,979 | -3,742 |
Other payables - related parties | 8,089 | -12,844 |
Customer deposits | 99,726 | -33,185 |
Customer deposits - related parties | 49,335 | -7,981 |
Taxes payable | -665 | -7,317 |
Other noncurrent liabilities | 0 | 1,384 |
Net cash provided by operating activities | 42,638 | 14,043 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Restricted cash | 13,174 | -72,676 |
Loans to related parties | 0 | 1,460 |
Cash proceeds from short term investment | 0 | -80 |
Cash proceeds from sales of equipments and intangible assets | 43 | 16 |
Equipment purchase and intangible assets | -117,826 | -75,326 |
Net cash used in investing activities | -104,609 | -146,606 |
CASH FLOWS FINANCING ACTIVITIES: | ' | ' |
Capital contributed by noncontrolling interest | 0 | 18,028 |
Restricted notes receivable | 283,563 | 10,218 |
Borrowings on short term notes payable | 1,264,884 | 1,348,631 |
Payments on short term notes payable | -1,491,237 | -1,370,832 |
Borrowings on short term loans - bank | 286,852 | 258,357 |
Payments on short term loans - bank | -337,007 | -155,390 |
Borrowings on short term loan - others | 47,755 | 148,678 |
Payments on short term loans - others | -32,389 | -169,558 |
Borrowings on short term loan - related parties | 47,189 | 362,202 |
Payments on short term loans - related parties | -23,353 | -274,718 |
Deposits due to sales representatives | 5,761 | -6,521 |
Deposit due to sales representatives - related parties | 325 | 531 |
Payments on long-term loans - related party | 0 | -22,856 |
Principal payment on capital lease obligation | -1,285 | 0 |
Net cash provided by financing activities | 51,058 | 146,770 |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 1,054 | 1,417 |
(DECREASE) INCREASE IN CASH | -9,859 | 15,624 |
CASH, beginning of period | 31,967 | 46,467 |
CASH, end of period | $22,108 | $62,091 |
Organization_and_Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2014 | |
Organization And Operations [Abstract] | ' |
Organization And Operations [Text Block] | ' |
Note 1 – Organization and Operations | |
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 $605.8 million (or approximately RMB 3.7 billion) of the constructed iron and steel making facilities owned by Shaanxi Steel, which includes one 400 m 2 sintering machine, two 1,280 m 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 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, the facilities 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 or loss generated by Longmen Joint Venture decreased from 60% to 36%. However, the overall capacity under the management of Longmen Joint Venture increased by three million tons, or 75%. The Agreement improved 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. There has been no adjustment to the Agreement from its inception to the present time nor intention to make future adjustment by the Company and Shaanxi Steel. | |
The parties to the Agreement established the Shaanxi Longmen Iron and Steel Unified Management Supervisory Committee ("Supervisory Committee") to ensure that the facilities and related resources are operated and managed according to the stipulations set forth in the Agreement. The Board of Directors of Longmen Joint Venture, of which the Company holds 4 out of 7 seats, requires a simple majority vote and 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 meets certain of the criteria of a capital lease and therefore the assets constructed by Shaanxi Steel are accounted for by Longmen Joint Venture as a capital lease. The profit sharing liability portion of the lease obligation, representing 40% of the pre-tax profit generated by the Asset Pool, is accounted for by Longmen Joint Venture as a derivative financial instrument at fair value. 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, 2014 | ||||||||||||||
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 and 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 for a fair presentation of the financial statements have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the 2013 annual report on Form 10-K/A filed on August 19, 2014. | ||||||||||||||
(a) | Basis of presentation | |||||||||||||
The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | ||||||||||||||
Subsidiary | Percentage 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. (“Yangpu Shengtong”) | 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 | ||||||||||||||
Prior to November 19, 2013, the Company held a 60.0% equity interest in Tianwu General Steel Material Trading Co., Ltd. (“Tianwu”). 32% interest was held by General Steel (China) and 28% interest was held by Yangpu Shengtong. On November 19, 2013, the Company sold its 28% equity interest of Tianwu held by Yangpu Shengtong to Tianjin Dazhan Industry Co., Ltd., a related party through indirect common ownership, for $13.6 million (RMB 84.3 million) while retaining 32% interest held by General Steel (China). As a result of this transaction, the Company met the criteria under ASC 810-10-40-4 to deconsolidate Tianwu at the disposal date and recognized a gain of $1.0 million in the fourth quarter of 2013 in accordance with ASC 810-10-40-5. At the same time, General Steel (China)’s remaining 32% interest is accounted for as an investment in unconsolidated subsidiaries using the equity method. See Note 2(t) - Investments in unconsolidated entities for details. | ||||||||||||||
(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. | ||||||||||||||
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 of Directors 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. The Supervisory Committee, in which the Company holds 2 out of 4 seats, requires a ¾ majority vote, while the Board of Directors, on 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. 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. If the Unified Management Agreement cannot be enforced, the Company would not consolidate Longmen Joint Venture as a VIE. However, the current PRC legal system has not limited the Company’s ability to enforce the Unified Management Agreement nor does the Company believe it is likely to do so in the future. The Company makes an 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, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current assets | $ | 1,037,052 | $ | 1,282,054 | ||||||||||
Plant and equipment, net | 1,508,595 | 1,262,144 | ||||||||||||
Other noncurrent assets | 37,724 | 29,014 | ||||||||||||
Total assets | 2,583,371 | 2,573,212 | ||||||||||||
Total liabilities | 3,145,353 | -3,040,879 | ||||||||||||
Net liabilities | $ | -561,982 | $ | -467,667 | ||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current liabilities: | ||||||||||||||
Short term notes payable | $ | 776,198 | $ | 988,364 | ||||||||||
Accounts payable | 579,077 | 393,816 | ||||||||||||
Accounts payable - related parties | 257,548 | 235,116 | ||||||||||||
Short term loans - bank | 204,576 | 267,688 | ||||||||||||
Short term loans - others | 54,163 | 55,844 | ||||||||||||
Short term loans - related parties | 222,792 | 125,236 | ||||||||||||
Current maturities of long-term loans – related party | 56,199 | 56,614 | ||||||||||||
Other payables and accrued liabilities | 41,277 | 37,028 | ||||||||||||
Other payables - related parties | 96,094 | 88,914 | ||||||||||||
Customer deposits | 108,340 | 87,661 | ||||||||||||
Customer deposits - related parties | 17,876 | 18,359 | ||||||||||||
Deposit due to sales representatives | 29,917 | 24,343 | ||||||||||||
Deposit due to sales representatives – related parties | 2,308 | 1,997 | ||||||||||||
Taxes payable | 2,511 | 3,357 | ||||||||||||
Deferred lease income | 2,171 | 2,187 | ||||||||||||
Capital lease obligations, current | 6,825 | 4,321 | ||||||||||||
Intercompany payable to be eliminated | 60,501 | 21,420 | ||||||||||||
Total current liabilities | 2,518,373 | 2,412,265 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long term loans - related parties | 15,925 | 16,043 | ||||||||||||
Deferred lease income - noncurrent | 73,077 | 75,257 | ||||||||||||
Capital lease obligations, noncurrent | 388,615 | 375,019 | ||||||||||||
Profit sharing liability at fair value | 149,363 | 162,295 | ||||||||||||
Total non-current liabilities | 626,980 | 628,614 | ||||||||||||
Total liabilities of consolidated VIE | $ | 3,145,353 | $ | 3,040,879 | ||||||||||
Three months ended | Three months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 559,317 | $ | 606,444 | ||||||||||
Gross profit | $ | 9,010 | $ | 8,122 | ||||||||||
Income from operations | $ | 9,746 | $ | 30,306 | ||||||||||
Net income attributable to controlling interest | $ | -3,378 | $ | 8,284 | ||||||||||
Nine months ended | Nine months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 1,740,645 | $ | 1,903,933 | ||||||||||
Gross profit (loss) | $ | 15,020 | $ | -23,704 | ||||||||||
(Loss) income from operations | $ | -21,420 | $ | 20,558 | ||||||||||
Net loss attributable to controlling interest | $ | -49,489 | $ | -18,335 | ||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Longmen Joint Venture also 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 invested in by Longmen Joint Venture in June 2007 and July 2008, respectively. 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. The assets, liabilities and the operating results of Hualong are immaterial to the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013, respectively, and for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
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 assets, liabilities and the operating results of Huatianyulong are immaterial to the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013, respectively, and for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
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 majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. | ||||||||||||||
(d) | Liquidity | |||||||||||||
The Company’s accounts have been prepared under the 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 options (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 the 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, 2014 and December 31, 2013 were (5.7) and (6.5), respectively. As of September 30, 2014, the Company’s current liabilities exceed current assets by $1.5 billion. | ||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for a majority of the 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, as well as its ability to obtain external financial supports, including but not limited to lines of credit from banks and vendor financing. If Longmen Joint Venture does not maintain a sufficient level of financial support by renewing its financing terms with existing financing sources or obtaining new sources of financial support, there may be an immediate negative impact on the Company’s operations and its ability to continue as a going concern. Longmen Joint Venture has obtained different types of financial support, which are listed below by category: | ||||||||||||||
Lines of credit | ||||||||||||||
The Company has lines of credit from the listed major banks totaling $141.4 million with expiration dates ranging from November 28, 2015 to January 30, 2016. | ||||||||||||||
Banks | Amount of | Repayment Date | ||||||||||||
Line of | ||||||||||||||
Credit | ||||||||||||||
(in millions) | ||||||||||||||
China Minsheng Bank | 97.5 | 28-Nov-15 | ||||||||||||
China Everbright Bank | 19.5 | 21-Jan-16 | ||||||||||||
Huaxia Bank | 24.4 | 30-Jan-16 | ||||||||||||
Total | $ | 141.4 | ||||||||||||
As of the date of this report, the Company utilized $80.0 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 $893.8 million with the following companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 243.8 | |||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 162.5 | ||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 487.5 | ||||||||||||
Total | $ | 893.8 | ||||||||||||
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 many years. On July 30, 2014, Company A signed a five-year agreement with Longmen Joint Venture to finance its coke purchases up to $243.8 million. Company B signed a three-year agreement with Longmen Joint Venture on January 22, 2014 to finance its coke purchases up to $162.5 million. According to the above signed agreements, both Company A and B will not demand any cash payments during their respective financing periods. As of the date of this report, the Company’s payables to Company A and Company B were approximately $72.2 million and $78.6 million, respectively. | ||||||||||||||
Company C is a Fortune 500 Company. On June 28, 2013, Company C signed an agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $487.5 million to commence on October 1, 2013 and end on March 31, 2015. On August 1, 2014, Company C signed an extension agreement with the Company and extended the financing terms to March 31, 2016. 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. As of the date of this report, the Company did not have payable to Company C. | ||||||||||||||
Other financing | ||||||||||||||
On March 5, 2014, April 22, 2014, April 23, 2014, and October 30, 2014, Longmen Joint Venture signed two-to-three-year payment extension agreements with Company D, E, F, G, H and I listed below. In addition, Shaanxi Steel, a related party, agreed to finance the construction of Longmen Joint Venture’s #5 blast furnace, which commenced in March 2013, for construction-related payments up to $321.8 million (RMB 1.98 billion) and would not demand payment from Longmen Joint Venture until it would have available funds for repayment. As of September 30, 2014, Longmen Joint Venture’s payable related to the construction of the #5 blast furnace amounted to $218.9 million. In total, Longmen Joint Venture can obtain $662.6 million in financial support from payment extensions granted by the following seven companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.3 | |||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86 | ||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.3 | ||||||||||||
Company G – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company H – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company I – related party | October 30, 2014 – October 30, 2017 | 81.3 | ||||||||||||
Shaanxi Steel – related party | Extended until funds available for repayment | 218.9 | ||||||||||||
Total | $ | 662.6 | ||||||||||||
As of the date of this report, our payables to Company D, Company E, Company F, Company G, Company H, Company I and Shaanxi Steel are approximately $16.3 million, $41.4 million, $11.6 million, $0, $0, $0 and $81.3 million, 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, 2014, Longmen Joint Venture has collected a total amount of $32.2 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, 2014 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, 2015. The detailed breakdown of Longmen Joint Venture’s estimated cash flows are listed below. | ||||||||||||||
Cash inflow (outflow) | ||||||||||||||
(in millions) | ||||||||||||||
For the twelve months | ||||||||||||||
ending September 30, | ||||||||||||||
2015 | ||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of September 30, 2014 (unaudited) | $ | -1,537.90 | ||||||||||||
Projected cash financing and outflows: | ||||||||||||||
Cash provided by lines of credit from banks | 141.4 | |||||||||||||
Cash provided by vendor financing | 893.8 | |||||||||||||
Cash provided by other financing | 662.6 | |||||||||||||
Cash provided by sales representatives | 32.2 | |||||||||||||
Cash projected to be used in operations in the twelve months ending September 30, 2015 | -33.5 | |||||||||||||
Cash projected to be used for financing cost in the twelve months ending September 30, 2015 | -58 | |||||||||||||
Net projected change in cash for the twelve months ending September 30, 2015 | $ | 100.6 | ||||||||||||
As a result, the unaudited condensed consolidated financial statements as of September 30, 2014 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 consolidated financial statements and footnotes. Significant accounting estimates reflected in the Company’s consolidated financial statements include the fair value of the profit sharing liability, the useful lives of and impairment of property, plant and equipment, potential losses on uncollectible receivables, the allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital leases and the present value of the net minimum lease payments of the capital leases. 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 price fluctuation of raw materials and energy prices as part of its normal operations. The Company does not utilize 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, 2014 and December 31, 2013 amounted to $405.4 million and $431.3 million, including $ 5.1 million and $ 2.0 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of September 30, 2014, $ 0.1 million cash in the bank was covered by insurance. The Company has not experienced any losses in its bank accounts and deposits its cash in a number of different banks to minimize its exposure to credit risk. | ||||||||||||||
The Company’s five major customers are all distributors and collectively represented 16.0% and 16.9% of the Company’s total sales for the three and nine months ended September 30, 2014, respectively. None of the five major customers accounted for more than 10% of the total sales for the three and nine months ended September 30, 2014. The Company’s five major customers represented 25.5% and 23.4% of the Company’s total sales for the three and nine months ended September 30, 2013, respectively. None of the five major customers individually accounted for more than 10% of the total sales for the three months or the nine months ended September 30, 2013. None of the five major customers has accounts receivable, including related parties, with the Company as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
For the three and nine months ended September 30, 2014, the Company purchased 18.8% and 29.5% 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 end September 30, 2014. Purchases from the five major suppliers represented 15.3% and 29.3% of the Company’s total purchases for the three months and nine months ended September 30, 2013, respectively. None of the five major suppliers individually accounted for more than 10% of the total purchases for the three months or nine months ended September 30, 2013, respectively. These five suppliers accounted for 25.7% and 29.1% of total accounts payable, including related parties, as of September 30, 2014 and December 31, 2013, respectively. None of the five major suppliers individually accounted for more than 10% of total accounts payable as September 30, 2014 and December 31, 2013. | ||||||||||||||
(g) | Foreign currency translation and other comprehensive income | |||||||||||||
The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries and VIE 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 statements of operations 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 $(0.2) million and $0.7 million as of September 30, 2014 and December 31, 2013, respectively. The balance sheet amounts, with the exception of equity, at September 30, 2014 and December 31, 2013 were translated at 6.15 RMB and 6.11 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended September 30, 2014 and 2013 were 6.16 RMB and 6.16 RMB, respectively. The average translation rates applied to the statements of operations for the nine months ended September 30, 2014 and 2013 were 6.15 RMB and 6.21 RMB, respectively. Cash flows are also translated at average translation rates for the periods; as a result, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances in 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 standard 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 investments, 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 carrying value of the long term loans-related party approximates its fair value as of the reporting date as their stated interest rates approximate current rates available. | ||||||||||||||
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. | |||||||||||||
The Company analyzes all financial instruments with features of both liabilities and equity, pursuant to which warrants previously issued by the Company were required to be recorded as a liability at fair value and marked to market each reporting period. The warrants were accounted for as derivative liabilities and recorded at their fair value, with the change in fair value charged or credited to income each period. The warrants expired unexercised on May 13, 2013. Prior to their expiration, the fair value of the warrants was estimated using a binomial lattice model, using level 3 inputs. | ||||||||||||||
As described in Note 15 - Capital lease obligations, payments related to the capital lease of the Asset Pool consist of two components: (1) a fixed monthly payment of $2.3 million (RMB 14.6 million), based on Shaanxi Steel’s cost to construct the assets, to be paid for the 20 year term of the Unified Management Agreement; and (2) 40% of any remaining pre-tax profits from the Asset Pool, which includes Longmen Joint Venture and the constructed iron and steel making facilities. The aforementioned profit sharing component meets the definition of a derivative instrument under ASC 815-10-15-83 and, accordingly, the profit sharing liability is accounted for separately as a derivative liability. It was recognized initially at its estimated fair value at inception. The estimated fair value is adjusted each reporting period, with changes in the estimated fair value of the profit sharing liability charged or credited to operating income each period. | ||||||||||||||
The Company determines the fair value of the profit sharing liability using Level 3 inputs by considering the present value of Longmen Joint Venture’s projected profits/losses, discounted based on our average borrowing rate, which is currently 7.3%. | ||||||||||||||
The fair value of the profit sharing liability will change each period as a result of (a) any changes in our estimate of Longmen Joint Venture’s projected profits/losses over the remaining term of the Agreement, (b) any change in the discount rate used, based on changes in our current or expected borrowing rate, (c) the change in fair value related to the passage of time and change in the number of future periods over which the present value of future cash flows is estimated and (d) any difference between the previously estimated operating results for the current period and actual results. | ||||||||||||||
Each period, the Company considers whether the discount rate based on the Company’s average borrowing rate should be adjusted based upon the current and expected future financial condition of the Company. To date, the Company has not considered any adjustment to be necessary based upon, but not limited to, the following assumptions: | ||||||||||||||
⋅ | because the joint venture partner of Longmen Joint Venture is a state-owned enterprise with an excellent credit history, PRC banks grant similar credit treatment to Longmen Joint Venture in terms of credit availability | |||||||||||||
⋅ | the current average borrowing rate of enterprises in the steel industry in the PRC is similar to this borrowing rate | |||||||||||||
⋅ | the current new/renewal borrowing rates of the Company’s bank loans are similar to prior periods | |||||||||||||
⋅ | the People’s Bank of China has not recently adjusted any borrowing rate | |||||||||||||
⋅ | PRC bank interest rates are not industry specific. The downtrend in the steel industry did not materially impact the bank borrowing rates for steel companies | |||||||||||||
⋅ | the bank interest rates are assessed by each individual bank and governed by the Chinese banking regulatory bodies. Reports from credit rating research firms are not commonly used by PRC banks | |||||||||||||
The projected profits/losses in Longmen Joint Venture are based upon, but not limited to, the following assumptions: | ||||||||||||||
⋅ | 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 | |||||||||||||
⋅ | interest rate index | |||||||||||||
⋅ | gross national product index | |||||||||||||
⋅ | industry index | |||||||||||||
⋅ | government policy | |||||||||||||
From inception to December 31, 2012, the assumptions underlying the estimated fair value did not change significantly. Beginning in the first quarter of 2013, the assumptions related to unit selling prices and costs were revised, resulting in a reduction of the estimated profit sharing liability. These assumptions were further revised during 2013. The above assumptions were again reviewed by the Company at September 30, 2014 and the assumptions related to the projected growth in the steel market and costs were revised, resulting in a further reduction of the estimated profit sharing liability. For the nine months ended September 30, 2014, the Company recognized a gain on the change in the fair value of the profit sharing liability of $11.8 million due to a $17.1 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits and a $3.4 million reduction resulting from the Asset Pool’s operating results for the nine months ended September 30, 2014 being slightly less favorable than previously estimated as of December 31, 2013, offset by a $8.8 million loss from the present value discount. The estimated fair value of the profit sharing liability at September 30, 2014 is $149.4 million. | ||||||||||||||
Changes in any of the assumptions used to estimate the fair value of the profit sharing liability will change the liability accordingly. If we were to reduce the projected bank borrowing rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of September 30, 2014 would have been $170.5 million and we would decrease the gain from the change in the fair value of the profit sharing liability by $21.2 million. If we were to 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 September 30, 2014 would have been $142.6 million and we would increase the gain from the change in the fair value of the profit sharing liability by $6.8 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, 2014: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||
of September 30, | 2014 | |||||||||||||
2014 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
Total | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
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, 2013: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||
of December 31, | 2013 | |||||||||||||
2013 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
Total | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
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 months ended September 30, 2014 and for the year ended December 31, 2013: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Beginning balance | $ | 162,295 | $ | 328,828 | ||||||||||
Change in fair value of profit sharing liability: | ||||||||||||||
Change in estimate of future operating profits | -17,146 | -183,528 | ||||||||||||
Change in discount rate | - | - | ||||||||||||
Interest expense - present value discount amortization | 8,795 | 16,872 | ||||||||||||
Difference between the previously estimated operating results for the current period and actual results | -3,407 | -7,913 | ||||||||||||
Change in derivative liabilities - warrants | - | 1 | ||||||||||||
Exchange rate effect | -1,174 | 8,035 | ||||||||||||
Ending balance | $ | 149,363 | $ | 162,295 | ||||||||||
Except for the derivative liabilities related to the profit sharing liability and to the warrants issued by the Company, which expired on May 13, 2013, the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value. | ||||||||||||||
(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 requests 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 expense for early submission requests for payment for the three months ended September 30, 2014 and 2013 amounted to $10.2 million and 9.6 million, respectively, and amounted to $37.1 million and $26.9 million, respectively, for the nine months ended September 30, 2014 and 2013. | ||||||||||||||
(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 | 10-20 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 account for 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 betterments 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 their 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. | ||||||||||||||
(k) | 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, 2014, 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 has a twenty-year term. | ||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.1 million (RMB 148.3 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 in | ||||||||||||
(in thousands) | ||||||||||||||
General Steel (China) | $ | 3,856 | 2050 & 2053 | |||||||||||
Longmen Joint Venture | $ | 24,097 | 2048 & 2052 | |||||||||||
Maoming Hengda | $ | 2,697 | 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 rights amounting to $2.4 million (RMB 15.0 million), which is amortized over the estimated recoverable reserve of 4.2 million tons. | ||||||||||||||
(l) | 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, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,130 | 24.1 | $ | 1,215 | 24.1 | |||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of September 30, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,612 | 32 | $ | 15,728 | 32 | |||||||
Total investment income in unconsolidated subsidiaries amounted to $0.03 million and $0.05 million for the three months ended September 30, 2014 and 2013, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2014 and 2013, respectively, which was included in “Income from equity investments” in the condensed consolidated statements of operations and comprehensive (loss) income. | ||||||||||||||
(m) | Revenue recognition | |||||||||||||
Sales are recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are met are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product. | ||||||||||||||
The Company infrequently engages in trading transactions in which the Company acts as an agent between the suppliers and the customers. The trading arrangements are such that the suppliers are the primary obligors, the Company does not have any general inventory risk, physical inventory loss risk or credit risk, and the Company does not have latitude in establishing price. Sales and cost of goods sold from these trading arrangements are recorded at the net amount in accordance with ASC 605-45. | ||||||||||||||
(n) | Recently issued accounting pronouncements | |||||||||||||
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments stipulate that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost should be recognized over the required service period, if it is probable that the performance condition would be achieved. The amendments in this Accounting Standards Update are effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company’s condensed consolidated financial statements. | ||||||||||||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity's liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity's liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity's liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have material impact on the Company’s condensed consolidated financial statements, although there may be additional disclosures upon adoption. | ||||||||||||||
In November 2014, the FASB issued Accounting Standard Update (ASU) No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, to clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The assessment of the substance of the relevant terms and features should incorporate a consideration of: (1) the characteristics of the terms and features themselves; (2) the circumstances under which the hybrid financial instrument was issued or acquired; and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on the Company’s condensed consolidated financial statements. | ||||||||||||||
Loans_receivable_including_rel
Loans receivable (including related parties) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ' | |||||||
Loans Receivable Related Parties Disclosure [Text Block] | ' | |||||||
Note 3 – Loans receivable (including related parties) | ||||||||
Loans receivable represent amounts the Company expects to collect from third parties and related parties upon maturity. | ||||||||
The Company had the following loan receivable due within one year as of: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to third party; due on demand and non-interest bearing. | $ | 14,625 | $ | - | ||||
Total loan receivable | $ | 14,625 | $ | - | ||||
The Company had the following loan receivable – related party due within one year as of: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to Teamlink Investment Co., Ltd; due in June, July and December 2014; interest rate is 4.75% | $ | - | $ | 4,540 | ||||
Total loan receivable – related party | $ | - | $ | 4,540 | ||||
See Note 18 “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 $0.1 million for the three months ended September 30, 2014 and 2013, respectively. | ||||||||
Total interest income for the loans amounted to $0.2 million and $0.2 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Accounts_receivable_including_
Accounts receivable (including related parties), net | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 9,209 | $ | 5,131 | ||||
Less: allowance for doubtful accounts | -728 | -1,053 | ||||||
Accounts receivable – related parties | 2,153 | 2,942 | ||||||
Net accounts receivable | $ | 10,634 | $ | 7,020 | ||||
Changes in the allowance for doubtful accounts are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 1,053 | $ | 1,367 | ||||
Charge to expense | - | 96 | ||||||
Less: recovery | -317 | -449 | ||||||
Exchange rate effect | -8 | 39 | ||||||
Ending balance | $ | 728 | $ | 1,053 | ||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
Note 5 – Inventories | ||||||||
Inventories consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 22,459 | $ | 21,040 | ||||
Raw materials | 157,872 | 164,301 | ||||||
Finished goods | 86,762 | 42,977 | ||||||
Less: allowance for inventory valuation | -17,076 | -15,397 | ||||||
Total inventories | $ | 250,017 | $ | 212,921 | ||||
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, 2014 and December 31, 2013, the Company had provided allowance for inventory valuation in the amounts of $17.1 million and $15.4 million, respectively. | ||||||||
Changes in the allowance for inventory valuation are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 15,397 | $ | 9,585 | ||||
Addition | 17,099 | 15,194 | ||||||
Less: write-off | -15,304 | -9,757 | ||||||
Exchange rate effect | -116 | 375 | ||||||
Ending balance | $ | 17,076 | $ | 15,397 | ||||
Advances_on_inventory_purchase
Advances on inventory purchases | 9 Months Ended |
Sep. 30, 2014 | |
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 $171.3 million and $127.9 million as of September 30, 2014 and December 31, 2013, respectively. | |
Plant_and_equipment_net
Plant and equipment, net | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
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, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Buildings and improvements | $ | 311,562 | $ | 274,402 | ||||||
Machinery | 657,680 | 667,093 | ||||||||
Machinery under capital lease | 625,196 | 623,895 | ||||||||
Transportation and other equipment | 23,177 | 22,991 | ||||||||
Construction in progress | 294,062 | 11,412 | ||||||||
Subtotal | 1,911,677 | 1,599,793 | ||||||||
Less: accumulated depreciation | -395,668 | -327,886 | ||||||||
Total | $ | 1,516,009 | $ | 1,271,907 | ||||||
Construction in progress consisted of the following as of September 30, 2014: | ||||||||||
Construction in progress | Value | Completion | Estimated | |||||||
additional cost to | ||||||||||
complete | ||||||||||
description | (In thousands) | date | (In thousands) | |||||||
Equipment updates | 1,992 | Dec-14 | 12,869 | |||||||
Sintering machine construction | 84,831 | Nov-14 | 59,875 | |||||||
#5 blast furnace construction | 185,354 | Dec-14 | 32,709 | |||||||
Reconstruction of miscellaneous factory buildings | 5,649 | Sep-15 | 5,242 | |||||||
Project materials | 2,139 | - | ||||||||
Others | 14,097 | - | ||||||||
Total | $ | 294,062 | $ | 110,695 | ||||||
The Company 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. During 2013 and 2014, Longmen Joint Venture entered into a number of capital lease agreements for energy-saving equipment installed throughout the steel production line. The Company is obligated under the capital lease for the equipment upon the confirmation of the energy-saving rate between the Company and its vendors. | ||||||||||
The carrying value of assets acquired under the capital lease consists of the following: | ||||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 625,196 | $ | 623,895 | ||||||
Less: accumulated depreciation | -99,777 | -77,086 | ||||||||
Carrying value of leased assets | $ | 525,419 | $ | 546,809 | ||||||
The Company assessed the recoverability of all of its remaining long lived assets at September 30, 2014 and December 31, 2013, respectively, and such assessment did not result in any impairment charges. | ||||||||||
Depreciation expense for the three months ended September 30, 2014 and 2013 amounted to $23.7 million and $21.6 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $71.0 and $64.1 million, respectively. These amounts include depreciation of assets held under capital leases for the three months ended September 30, 2014 and 2013, which amounted to $7.7 million and $7.1 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $23.3 and $21.2 million, respectively. | ||||||||||
Intangible_assets_net
Intangible assets, net | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
Note 8 – Intangible assets, net | ||||||||
Intangible assets consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,650 | $ | 30,884 | ||||
Mining right | 2,441 | 2,459 | ||||||
Software | 1,049 | 743 | ||||||
Subtotal | 34,140 | 34,086 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -8,931 | -8,498 | ||||||
Accumulated amortization – mining right | -1,396 | -1,320 | ||||||
Accumulated amortization – software | -692 | -561 | ||||||
Subtotal | -11,019 | -10,379 | ||||||
Intangible assets, net | $ | 23,121 | $ | 23,707 | ||||
The gross amount of the intangible assets amounted to $34.1 million and $34.1 million as of September 30, 2014 and December 31, 2013, respectively. The remaining weighted average amortization period is 32.9 years as of September 30, 2014. | ||||||||
Total amortization expense for the three months ended September 30, 2014 and 2013 amounted to $0.1 million and $0.2 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $0.6 million and $0.7 million, respectively. | ||||||||
Total depletion expense for the three months ended September 30, 2014 and 2013 amounted to $0.04 million and $0.02 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $0.1 million and $0.1 million, respectively. | ||||||||
The estimated aggregate amortization and depletion expenses for each of the five succeeding years is as follows: | ||||||||
Year ending | Estimated | Gross carrying | ||||||
amortization and | amount | |||||||
depletion expenses | ||||||||
(in thousands) | (in thousands) | |||||||
30-Sep-15 | $ | 966 | 22,155 | |||||
30-Sep-16 | 966 | 21,189 | ||||||
30-Sep-17 | 966 | 20,223 | ||||||
30-Sep-18 | 966 | 19,257 | ||||||
30-Sep-19 | 966 | 18,291 | ||||||
Thereafter | 18,291 | - | ||||||
Total | $ | 23,121 | ||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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 $371.0 million and $399.4 million as of September 30, 2014 and December 31, 2013, respectively. Restricted notes receivable as a guarantee for the notes payable amounted to $26.0 million and $231.7 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||
The Company had the following short-term notes payable as of: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due various dates from December 2014 to January 2015. Restricted cash required of $8.1 million and $16.4 million as of September 30, 2014 and December 31, 2013, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 8,125 | $ | 29,466 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from October 2014 to September 2015. $362.9 million restricted cash and $26.0 million notes receivable are secured for notes payable as of September 30, 2014, and comparatively $383.0 million restricted cash and $231.7 million notes receivable secured as of December 31, 2013, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 776,198 | 988,364 | ||||||
Total short-term notes payable | $ | 784,323 | $ | 1,017,830 | ||||
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, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from November 2014 to August 2015. Weighted average interest rate was 7.2% per annum and 7.2% per annum as of September 30, 2014 and December 31, 2013, respectively; some are guaranteed by third parties and related parties. These loans were either repaid or renewed subsequently on the due dates. | $ | 43,713 | $ | 34,229 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from December 2014 to July 2015. Weighted average interest rate was 6.9% per annum and 6.3% per annum as of September 30, 2014 and December 31, 2013, respectively; some are guaranteed by third parties, accounts receivable, restricted cash or notes receivables. $82.5 million and $163.9 million restricted notes receivable were secured for the loans as of September 30, 2014 and December 31, 2013, respectively; $12.2 million and $0 restricted cash were secured for the loans as of September 30, 2014 and December 31, 2013, respectively; These loans were either repaid or renewed subsequently on the due dates. | 204,576 | 267,688 | ||||||
Total short-term loans - bank | $ | 248,289 | $ | 301,917 | ||||
Due to unrelated parties | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from December 2014 to September 2015, and weighted average interest rate was 5.6% per annum and 5.2% per annum as of September 30, 2014 and December 31, 2013, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 37,899 | $ | 22,720 | ||||
Longmen Joint Venture: Loans from financing sales. | 16,264 | 33,124 | ||||||
Maoming Hengda: Loans from one unrelated party and one related party, due on demand, none interest bearing. | 6,177 | 6,223 | ||||||
Total short-term loans – others | $ | 60,340 | $ | 62,067 | ||||
The Company had various loans from unrelated companies amounting to $60.3 million and $62.1 million as of September 30, 2014 and December 31, 2013, respectively. Of the $60.3 million, $6.2 million of loans carry no interest, $16.3 million of financing sales are subject to interest rates ranging between 4.6% and 9.6%, and the remaining $37.9 million are subject to interest rates ranging from 5.0% to 14.4%. 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 Longmen Joint Venture’s subsidiaries, 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 4.6% to 9.6% 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 4.6% to 9.6% 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 consolidated financial statements. | ||||||||
Total financing sales for the three months ended September 30, 2014 and 2013 amounted to $259.7 million and $166.2 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $719.3 million and $519.5 million, respectively, which are eliminated in the Company’s consolidated financial statements. The financial cost related to financing sales for the three months ended September 30, 2014 and 2013 amounted to $1.4 million and $1.1 million, respectively, and for the nine months ended September 30, 2014 and 2013, amounted to $3.1 million and $4.2 million, respectively. | ||||||||
Short term loans due to related parties | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rate is 10% per annum. | $ | 668 | $ | 1,458 | ||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due on demand, and interest rate is 7.0% per annum. | 5,467 | 28,216 | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group due on various dates from November 2014 to July 2015, and interest rate is 8.0% per annum. | 95,875 | 49,110 | ||||||
Longmen Joint Venture: Loans from financing sales. | 121,450 | 47,909 | ||||||
Total short-term loans - related parties | $ | 223,460 | $ | 126,693 | ||||
Long-term loans due to related party | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due on various dates through November 2015 and interest rate is 5.6% per annum. | $ | 72,124 | $ | 72,657 | ||||
Less: Current maturities of long-term loans – related party | -67,249 | -53,013 | ||||||
Long-term loans - related party | $ | 4,875 | $ | 19,644 | ||||
Total interest expense, net of capitalized interest, amounted to $4.0 million and $8.2 million for the three months ended September 30, 2014 and 2013, respectively. | ||||||||
Total interest expense, net of capitalized interest, amounted to $21.6 million and $26.7 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Capitalized interest included in construction in progress amounted to $1.3 million and $1.3 million for the three months ended September 30, 2014 and 2013, respectively. | ||||||||
Capitalized interest included in construction in progress amounted to $2.1 million and $2.1 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Customer_deposits
Customer deposits | 9 Months Ended |
Sep. 30, 2014 | |
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, 2014 and December 31 2013, customer deposits amounted to $300.5 million and $152.7 million, respectively, including deposits received from related parties, which amounted to $113.7 million and $64.9 million, respectively. | |
Deposits_due_to_sales_represen
Deposits due to sales representatives | 9 Months Ended |
Sep. 30, 2014 | |
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 $32.2 million and $26.3 million in deposits due to sales representatives, including deposits due to related parties, as of September 30, 2014 and December 31, 2013, respectively. | |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Warrants and Rights Note Disclosure [Text Block] | ' |
Note 12 – Warrants | |
The Company had 3,900,871 common stock warrants outstanding, which were issued in connection with $40 million of convertible notes issued by the Company in 2007. The warrants, which were accounted for as a derivative liability at fair value, expired unexercised on May 13, 2013. | |
Supplemental_disclosure_of_cas
Supplemental disclosure of cash flow information | 9 Months Ended |
Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow Supplemental Disclosures [Text Block] | ' |
Note 13 - Supplemental disclosure of cash flow information | |
Interest paid, net of amounts capitalized, amounted to $12.6 million and $11.5 million for the nine months ended September 30, 2014 and 2013, respectively. | |
The Company paid income taxes of $0.1 million and $0.3 million during the nine months ended September 30, 2014 and 2013, respectively. | |
During the nine months ended September 30, 2014 and 2013, the Company had receivables of $0.01 million and $1.0 million, respectively, as a result of the disposal of equipment that had not been collected. | |
During the nine months ended September 30, 2014 and 2013, the Company converted $0.05 million and $1.0 million of equipment, respectively, into inventory productions. | |
During the nine months ended September 30, 2014 and 2013, the Company used $2.4 million and $37.3 million of inventory, respectively, in plant and equipment construction. | |
The Company had $57.4 million notes receivable from financing sales loans to be converted to cash as of September 30, 2014. | |
During the nine months ended September 30, 2014, the Company incurred $208.3 million of accounts payable for the purchase of equipment and construction in progress. | |
During the nine months ended September 30, 2014 and 2013, one of the Company’s unconsolidated entities declared a dividend and the Company is entitled to a dividend of $0.2 million and $0.2 million, respectively, which has not yet been collected. | |
During the nine months ended September 30, 2014, the Company acquired $5.9 million of equipment through capital leases. | |
During the nine months ended September 30, 2013, the Company offset $ 64.2 million of accounts payable to related party as loan receivable – related party repayment. | |
During the nine months ended September 30, 2013, the Company offset $ 119.9 million of 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 of refundable advances on inventory purchase – related parties to other receivables – related parties. | |
Deferred_lease_income
Deferred lease income | 9 Months Ended |
Sep. 30, 2014 | |
Deferred Revenue [Abstract] | ' |
Deferred Revenue Disclosure [Text Block] | ' |
Note 14 - Deferred lease income | |
To compensate the Company for the costs and economic losses incurred during construction of the iron and steel making facilities owned by Shaanxi Steel, which are leased by the Longmen Joint Venture, 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 $14.5 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 $7.1 million (RMB 43.9 million) was deferred and is being 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, 2014 and 2013, the Company recognized $0.5 million and $0.5 million, respectively. For the nine months ended September 30, 2014 and 2013, the Company recognized $1.6 million and $1.6 million, respectively. As of September 30, 2014 and December 31, 2013, the balance of deferred lease income amounted to $75.2 million and $77.4 million, respectively, of which $2.2 million and $2.2 million represents amounts to be amortized within one year. See Note 18 – Related party transactions and balances (m) – Deferred lease income for details. | |
Capital_lease_obligations
Capital lease obligations | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||
Note 15 - Capital lease obligations | |||||
Iron and steel production facilities | |||||
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 of $2.3 million (RMB 14.6 million), based on Shaanxi Steel’s cost to construct the assets, 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 February 2014, Shaanxi Steel agreed that it will not demand capital lease payments from Longmen Joint Venture until February 2017. The profit sharing component does not meet the definition of contingent rent because it is based on future revenue and was therefore considered part of the financing for the capital leased assets. The initial fair value of the profit sharing liability was included in determining the value of the leased assets at inception. The profit sharing liability is accounted for separately from the monthly lease payments and is accounted for as a derivative liability at fair value, with changes in the fair value charged or credited to income each period. See Note 2(h) – “Financial instruments” and Note 16 – “Profit sharing liability”. | |||||
Energy-saving equipment | |||||
During 2013 and 2014, the Company’s subsidiary, Longmen Joint Venture, entered into capital lease agreements for energy-saving equipment to be installed throughout the production chain. Under these agreements, Longmen Joint Venture uses the energy-saving equipment for which the vendors are responsible for the design, purchase, installation, and on-site testing, as well as the ownership rights to the equipment during the lease periods. The lease periods, which vary between four to six years, begin upon the completion of the equipment installation, testing, and the issuance of the energy-saving rate reports to be agreed upon by both the vendors and Longmen Joint Venture. As the ownership rights of the equipment transfer to Longmen Joint Venture at the end of the lease periods, these agreements are accounted for as capital leases. | |||||
The minimum lease payments are based on the energy cost saved during the lease periods, which is determined by the estimated annual equipment operating hours per the lease agreements. If the actual annual equipment operating hours are less than the estimated amount, the lease periods may be extended, subject to further negotiation and agreement between the Company and the vendors. If the actual annual equipment operating hours exceed the estimated amount, the Company is obligated to make additional lease payments based on the additional energy cost saved during the lease period and will recognize the additional lease payments as contingent rent expense. For the three and nine months ended September 30, 2014 and 2013, no contingent rent expense was incurred under these lease agreements. | |||||
Presented below is a schedule of estimated minimum lease payments on the capital lease obligations for the next five years as of September 30, 2014: | |||||
Year ending September 30, | Capital Lease Obligations | ||||
Minimum Lease Payments | |||||
(in thousands) | |||||
2015 | $ | 8,320 | |||
2016 | 5,804 | ||||
2017 | 188,812 | ||||
2018 | 32,510 | ||||
2019 | 29,957 | ||||
Thereafter | 331,209 | ||||
Total minimum lease payments | 596,612 | ||||
Less: amounts representing interest | -201,172 | ||||
Ending balance | $ | 395,440 | |||
The above amounts do not include the profit sharing liability, which is accounted for separately as a derivative instrument at fair value. | |||||
Interest expense for the three months ended September 30, 2014 and 2013 on the capital lease obligations was $5.2 million and $5.1 million, respectively. | |||||
Interest expense for the nine months ended September 30, 2014 and 2013 on the capital lease obligations was $16.0 million and $15.3 million, respectively. | |||||
Profit_sharing_liability
Profit sharing liability | 9 Months Ended |
Sep. 30, 2014 | |
Profit Sharing Liability [Abstract] | ' |
Profit Sharing Liability [Text Block] | ' |
Note 16 – Profit sharing liability | |
The profit sharing liability component of the capital lease obligation was 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. The profit sharing liability is accounted for separately from the fixed portion of the capital lease obligation (see Note 15 - “Capital lease obligation”) and is accounted for as a derivative instrument in accordance with ASC 815-10-15-83. The estimated fair value of the profit sharing liability is reassessed at the end of each reporting period, with any change in fair value charged or credited to income as “Change in Fair Value of Profit Sharing Liability”. See Note 2(h) – “Financial instruments” for details. | |
Payments to Shaanxi Steel for the profit sharing liability are not required until net cumulative profits are achieved. Based on the performance of the Asset Pool, no profit sharing payment was made from inception to date. | |
Taxes
Taxes | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
Note 17 – 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 and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||
(In thousands) | Three months ended | Three months ended | ||||||
September 30, 2014 | September 30, 2013 | |||||||
Current | $ | 93 | $ | 25 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 93 | $ | 25 | ||||
(In thousands) | Nine months ended | Nine months ended | ||||||
September 30, 2014 | September 30, 2013 | |||||||
Current | $ | 205 | $ | 201 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 205 | $ | 201 | ||||
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. The special tax treatment has not changed to date as a result of the evaluations by the local tax bureau. | ||||||||
Deferred tax 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 carry forwards of $531.8 million will begin to expire in 2015. 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 is 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 a 100% valuation allowance for the deferred tax assets. The valuation allowance as of September 30, 2014 and December 31, 2013 was $101.0 million and $97.6 million, respectively. Management will review this valuation allowance periodically and make adjustments as warranted. Temporary differences represent tax and book differences for various items, such as receivable allowances, inventory allowances, impairments on fixed assets and deferred lease income. | ||||||||
Movement of valuation allowance: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 97,569 | $ | 72,891 | ||||
Current period addition | 4,567 | 23,293 | ||||||
Current period reversal | -214 | -1,206 | ||||||
Exchange difference | -721 | 2,591 | ||||||
Ending balance | $ | 101,201 | $ | 97,569 | ||||
Deferred tax 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, 2014. The net operating loss carry forwards for United States income taxes amounted to $3.0 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2026 through 2033. 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, 2014 was $1.0 million. The net change in the valuation allowance for the nine months ended September 30, 2014 was $0.3 million. Management will review this valuation allowance periodically and make adjustments as warranted. | ||||||||
The Company has no cumulative proportionate retained earnings from profitable subsidiaries as of September 30, 2014. 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, 2014 and December 31, 2013, the Company had $4.8 million and $3.5 million in value added tax credits 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 $217.6 million and $210.8 million, respectively, for the three months ended September 30, 2014 and $ 160.5 million and $156.2 million, respectively, for the three months ended September 30, 2013. VAT on sales and VAT on purchases amounted to $549.1 million and $537.2 million, respectively, for the nine months ended September 30, 2014 and $513.7 million and $494.4 million, respectively, for the nine months ended September 30, 2013. | ||||||||
Taxes payable consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 1,731 | $ | 2,211 | ||||
Income taxes payable | 256 | 173 | ||||||
Other taxes | 1,943 | 2,244 | ||||||
Totals | $ | 3,930 | $ | 4,628 | ||||
Related_party_transactions_and
Related party transactions and balances | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||||
Note 18 – Related party transactions and balances | ||||||||||
Related party transactions | ||||||||||
a. Capital lease | ||||||||||
As disclosed in Note 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, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 601,398 | $ | 605,839 | ||||||
Less: accumulated depreciation | -97,602 | -76,740 | ||||||||
Carrying value of leased assets | $ | 503,796 | $ | 529,099 | ||||||
b. The following chart summarizes sales to related parties for the three and nine months ended September 30, 2014 and 2013. | ||||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 45,200 | $ | 63,793 | |||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group* | - | 1,081 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group* | 22,126 | 85 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group* | 22,216 | 19,866 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 734 | 979 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 14,406 | 7,951 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 1,998 | 9 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 1,782 | |||||||
Total | $ | 106,680 | $ | 95,546 | ||||||
*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. | ||||||||||
Name of related parties | Relationship | Nine months ended | Nine months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 115,150 | $ | 226,754 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | - | 72 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | - | 21,491 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 22,946 | 15,681 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 69,919 | 56,545 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,831 | 2,390 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 35,795 | 22,577 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 13,733 | 2,122 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 8,888 | 33,075 | |||||||
Total | $ | 268,262 | $ | 380,707 | ||||||
Sales to related parties in trading transactions, which were netted against the corresponding cost of goods sold, amounted to $49.2 million and $141.1 million for the three and nine months ended September 30, 2014, respectively. See Note 2(m) Revenue Recognition for details. | ||||||||||
c. The following charts summarize purchases from related parties for the nine months ended three and nine months ended September 30, 2014 and 2013. | ||||||||||
Name of related parties | Relationship | Three months | Three months | |||||||
ended | ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 27,649 | $ | 101,606 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 41,690 | 31,331 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 32,536 | 1,181 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 1 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 7,636 | 10,529 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | - | 1,726 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding** | 5,090 | - | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 16,764 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaaxi Steel | 13,441 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | 64 | |||||||
Total | $ | 144,806 | $ | 146,438 | ||||||
**The CEO referred to herein is the chief executive officer of General Steel Holdings, Inc. | ||||||||||
Name of related parties | Relationship | Nine months ended | Nine months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 279,925 | $ | 376,104 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 125,957 | 148,322 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 38,456 | 13,678 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 53 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 212 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 21,857 | 28,618 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | - | 6,635 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 83,649 | - | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 13,618 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 45,604 | - | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 16,764 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaaxi Steel | 14,385 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 140 | 300 | |||||||
Total | $ | 640,355 | $ | 573,922 | ||||||
Related party balances | ||||||||||
a. | Loans receivable – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Teamlink Investment Co., Ltd | Partially owned by CEO through indirect shareholding | - | 4,540 | |||||||
Total | $ | - | $ | 4,540 | ||||||
See Note 3 – loans receivable – related parties for loan details. | ||||||||||
b. | Accounts receivables – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 173 | $ | 548 | |||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 19 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,961 | 1,741 | |||||||
Others | - | 634 | ||||||||
Total | $ | 2,153 | $ | 2,942 | ||||||
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, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 16,549 | $ | 406 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,137 | 46,439 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 9,391 | 1,247 | |||||||
Tianjin Dazhan Industry Co, Ltd | Partially owned by CEO through indirect shareholding | 24,311 | 491 | |||||||
Beijing Shenhua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 5,840 | 4,901 | |||||||
Tianjin Hengying Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 13,299 | - | |||||||
Victory Energy Resource Co., Ltd | Partially owned by CEO through indirect shareholding | 1,131 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 322 | 622 | |||||||
Total | $ | 71,980 | $ | 54,106 | ||||||
d. | Advances on inventory purchase – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 87 | $ | 9,123 | |||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 25,607 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 11,721 | 10,343 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 51,304 | 16,158 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 20,868 | 555 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 43,888 | 21,197 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 31 | 20 | |||||||
Total | $ | 127,899 | $ | 83,003 | ||||||
e. | Accounts payable - related parties: | |||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 72,240 | $ | 58,163 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 106,480 | 134,758 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 25,066 | 29,990 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 945 | 958 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 31,990 | 8,714 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 1 | |||||||
Henan Xinmi Kanghua Fire Refractory Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 799 | 716 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 36 | 1,004 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 19,207 | 759 | |||||||
Tianjin General Qiugang Pipe Co., Ltd. | Partially owned by CEO through indirect shareholding | 8,136 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 845 | 629 | |||||||
Total | $ | 265,744 | $ | 235,692 | ||||||
f. | Short-term loans - related parties: | |||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 95,875 | $ | 49,110 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 74,171 | 28,216 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 52,746 | 33,183 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 8,178 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | - | 6,548 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 668 | 1,458 | |||||||
Total | $ | 223,460 | $ | 126,693 | ||||||
See Note 9 – Debt for the loan details. | ||||||||||
g. | Current maturities of long-term loans – related parties | |||||||||
Name of related party | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 67,249 | $ | 53,013 | |||||
Total | $ | 67,249 | $ | 53,013 | ||||||
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. | ||||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 11,731 | $ | 380 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 71,671 | 43,636 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 3,727 | 44,363 | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 1,125 | 895 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 362 | 291 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 9,329 | 473 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 2,723 | 1,745 | |||||||
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 | 807 | 921 | |||||||
Total | $ | 101,475 | $ | 94,079 | ||||||
i. | Customer deposits – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | $ | 10 | $ | 10 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 386 | - | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 17,282 | 15,038 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 16 | 2,748 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | - | 275 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 95,798 | 46,521 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 182 | - | |||||||
Others | - | 289 | ||||||||
Total | $ | 113,674 | $ | 64,881 | ||||||
j. | Deposits due to sales representatives – related parties | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Gansu Yulong Trading Co., Ltd. | Significant influence by Long Steel Group | $ | 1,073 | $ | 1,408 | |||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 585 | 589 | |||||||
Shaanxi Haiyan Trading Co., Ltd. | Significant influence by Long Steel Group | 650 | - | |||||||
Total | $ | 2,308 | $ | 1,997 | ||||||
k. | Long-term loans – related party: | |||||||||
Name of related party | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 4,875 | $ | 19,644 | |||||
Total | $ | 4,875 | $ | 19,644 | ||||||
The Company also provided guarantees on related parties’ bank loans amounting to $151.4 million and $205.8 million as of September 30, 2014 and as of December 31, 2013, respectively. | ||||||||||
l. | Deferred lease income | |||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 77,444 | $ | 77,199 | ||||||
Less: Lease income realized | -1,630 | -2,158 | ||||||||
Exchange rate effect | -566 | 2,403 | ||||||||
Ending balance | 75,248 | 77,444 | ||||||||
Current portion | -2,171 | -2,187 | ||||||||
Noncurrent portion | $ | 73,077 | $ | 75,257 | ||||||
For the three months ended September 30, 2014 and 2013, the Company realized lease income from Shaanxi Steel, a related party, amounting to $0.5 million and $0.5 million, respectively. | ||||||||||
For the nine months ended September 30, 2014 and 2013, the Company realized lease income from Shaanxi Steel, a related party, amounting to $1.6 million and $1.6 million, respectively. | ||||||||||
m. | Equity | |||||||||
On November 19, 2013, the Company sold its 28% equity interest in Tianwu, held by Yangpu Shengtong, to Tianjin Dazhan Industry Co., Ltd., a related party through indirect common ownership by the CEO, for $13.6 million (RMB 84.3 million) while retaining the 32% interest held by General Steel (China). As a result of this transaction, the Company met the criteria under ASC 810-10-40-4 to deconsolidate Tianwu as of the ownership disposal date and recognize a gain, which amounted to $1.0 million. After the deconsolidation of Tianwu, General Steel (China)’s 32% interest in Tianwu is accounted for as an equity method investment, which amounted to $15.6 million and $15.8 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||
Equity
Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
Note 19 – Equity | |
2014 Equity Transactions | |
On February 3, 2014, the Company granted 80,000 shares of common stock for investor relations consulting services under two service agreements dated January 14, 2014. The shares were valued at $1.01 per share, the quoted market price at the time the services were provided. | |
On August 21, 2014, the Company granted 80,000 shares of common stock for investor relations consulting services under two service agreements dated July 10, 2014. The shares were valued at $1.04 per share, the quoted market price at the time the services were provided. | |
Retirement_plan
Retirement plan | 9 Months Ended |
Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
Note 20 – 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 for the three months ended September 30, 2014 and 2013 amounted to $5.0 million and $2.3 million, respectively, and for the nine months ended September 30, 2014 and 2013 amounted to $10.8 million and $6.4 million, respectively. | |
Commitment_and_contingencies
Commitment and contingencies | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||
Note 21 – 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, 2014 is as follows: | |||||||
Year ending June 30, | Minimum lease payment | ||||||
(in thousands) | |||||||
2015 | $ | 871 | |||||
2016 | 566 | ||||||
2017 | 566 | ||||||
2018 | 566 | ||||||
2019 | 566 | ||||||
Years after | 19,644 | ||||||
Total minimum payments required | $ | 22,779 | |||||
Total rental expense was $0.9 million and $0.8 million for the three months ended September 30, 2014 and 2013, respectively, and $2.4 million and $2.4 million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||
Contractual Commitments | |||||||
Longmen Joint Venture has $110.7 million contractual obligations related to construction projects as of September 30, 2014 estimated to be fulfilled between November 2014 and September 2015. | |||||||
Contingencies | |||||||
As of September 30, 2014, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $196.7 million. | |||||||
Nature of guarantee | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Line of credit | $ | 127,644 | Various from December 2014 to September 2015 | ||||
Three-party financing agreements | 14,463 | Various from April to June 2015 | |||||
Confirming storage | 41,600 | Various from October 2014 to April 2015 | |||||
Financing by the rights of goods delivery in future | 13,000 | Oct-14 | |||||
Total | $ | 196,707 | |||||
Name of parties being guaranteed | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Long Steel Group | $ | 79,706 | Various from December 2014 to September 2015 | ||||
Hancheng Haiyan Coking Co., Ltd | 25,350 | Various from October 2014 to April 2015 | |||||
Chengdu Zhongyi Steel Co., Ltd | 8,125 | Mar-15 | |||||
Shaanxi Fuping Steel Co., Ltd | 3,088 | Jun-15 | |||||
Xi’an Laisheng Logistics Co., Ltd | 3,250 | May-15 | |||||
Xi'an Kaiyuan Steel Sales Co., Ltd | 6,500 | Jan-15 | |||||
Shaanxi Longan Industry Co., Ltd. | 8,125 | Dec-14 | |||||
Hancheng Sanli Furnace Burden Co., Ltd. | 16,250 | Mar-15 | |||||
Tianjin Dazhan Industry Co., Ltd | 20,313 | Various from January to March 2015 | |||||
Tianjin Hengying Trading Co., Ltd | 26,000 | Various from October 2014 to January 2015 | |||||
Total | $ | 196,707 | |||||
As of September 30, 2014, the Company did not accrue any liability for the amounts the Group has guaranteed for third parties 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, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
Note 22 – 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 the results of division operations for the three months ended September 30, 2014 and 2013: | ||||||||
(In thousands) | ||||||||
Sales: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 559,317 | $ | 606,444 | ||||
Maoming Hengda | 1,122 | 252 | ||||||
Baotou Steel Pipe Joint Venture | 2,383 | 2,921 | ||||||
General Steel (China) & Tianwu Joint Venture | 20,335 | 4,236 | ||||||
Total sales | 583,157 | 613,853 | ||||||
Interdivision sales | -20,335 | -3,758 | ||||||
Consolidated sales | $ | 562,822 | $ | 610,095 | ||||
Gross profit (loss): | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 9,010 | $ | 8,122 | ||||
Maoming Hengda | -80 | -57 | ||||||
Baotou Steel | 178 | 160 | ||||||
General Steel (China) & Tianwu Joint Venture | 502 | 6 | ||||||
Total gross profit (loss) | 9,610 | 8,231 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 9,610 | $ | 8,231 | ||||
Income (loss) from operations: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 9,746 | $ | 30,306 | ||||
Maoming Hengda | -248 | -719 | ||||||
Baotou Steel | -30 | 20 | ||||||
General Steel (China) & Tianwu Joint Venture | 841 | -695 | ||||||
Total income (loss) from operations | 10,309 | 28,912 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -2,406 | -1,177 | ||||||
Consolidated income (loss) from operations | $ | 7,903 | $ | 27,735 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -3,378 | $ | 8,284 | ||||
Maoming Hengda | -318 | -694 | ||||||
Baotou Steel | -24 | 16 | ||||||
General Steel (China) & Tianwu Joint Venture | 2,595 | -2,689 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -1,125 | 4,917 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -2,365 | -1,116 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -3,490 | $ | 3,801 | ||||
Depreciation, amortization and depletion: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 22,960 | $ | 21,014 | ||||
Maoming Hengda | 437 | 307 | ||||||
Baotou Steel | 64 | 62 | ||||||
General Steel (China) & Tianwu Joint Venture | 447 | 505 | ||||||
Consolidated depreciation, amortization and depletion | $ | 23,908 | $ | 21,888 | ||||
Finance/interest expenses: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 17,831 | $ | 20,591 | ||||
Maoming Hengda | 1 | 1 | ||||||
Baotou Steel | - | - | ||||||
General Steel (China) & Tianwu Joint Venture | 1,588 | 2,249 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 2 | 1 | ||||||
Consolidated interest expenses | $ | 19,422 | $ | 22,842 | ||||
Capital expenditures: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 5,096 | $ | 16,455 | ||||
Maoming Hengda | 16 | - | ||||||
Baotou Steel | 1 | - | ||||||
General Steel (China) & Tianwu Joint Venture | - | - | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 5,113 | $ | 16,455 | ||||
The following represents the results of division operations for the nine months ended September 30, 2014 and 2013: | ||||||||
(In thousands) | ||||||||
Sales: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 1,740,645 | $ | 1,903,933 | ||||
Maoming Hengda | 1,373 | 3,124 | ||||||
Baotou Steel Pipe Joint Venture | 3,028 | 3,902 | ||||||
General Steel (China) & Tianwu Joint Venture | 20,388 | 58,416 | ||||||
Total sales | 1,765,434 | 1,969,375 | ||||||
Interdivision sales | -20,388 | -54,338 | ||||||
Consolidated sales | $ | 1,745,046 | $ | 1,915,037 | ||||
Gross profit (loss): | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 15,020 | $ | -23,704 | ||||
Maoming Hengda | -35 | 188 | ||||||
Baotou Steel | 158 | 249 | ||||||
General Steel (China) & Tianwu Joint Venture | - | 29 | ||||||
Total gross profit (loss) | 15,143 | -23,238 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 15,143 | $ | -23,238 | ||||
Loss from operations: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -21,420 | $ | 20,558 | ||||
Maoming Hengda | -824 | -1,741 | ||||||
Baotou Steel | -207 | -285 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,445 | -2,293 | ||||||
Total loss from operations | -24,896 | 16,239 | ||||||
Interdivision loss from operations | - | - | ||||||
Reconciling item (1) | -4,539 | -3,504 | ||||||
Consolidated loss from operations | $ | -29,435 | $ | 12,735 | ||||
Net loss attributable to General Steel Holdings, Inc.: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -49,489 | $ | -18,335 | ||||
Maoming Hengda | -978 | -1,681 | ||||||
Baotou Steel | -165 | -227 | ||||||
General Steel (China) & Tianwu Joint Venture | -3,118 | -9,373 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -53,750 | -29,616 | ||||||
Interdivision net income (loss) | - | - | ||||||
Reconciling item (1) | -4,323 | -3,298 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -58,073 | $ | -32,914 | ||||
Depreciation, amortization and depletion: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 69,268 | $ | 62,295 | ||||
Maoming Hengda | 899 | 933 | ||||||
Baotou Steel | 185 | 185 | ||||||
General Steel (China) & Tianwu Joint Venture | 1,344 | 1,542 | ||||||
Consolidated depreciation, amortization and depletion | $ | 71,696 | $ | 64,955 | ||||
Finance/interest expenses: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 69,952 | $ | 60,984 | ||||
Maoming Hengda | 1 | 1 | ||||||
Baotou Steel | - | - | ||||||
General Steel (China) & Tianwu Joint Venture | 4,685 | 7,927 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 98 | 3 | ||||||
Consolidated interest expenses | $ | 74,736 | $ | 68,915 | ||||
Capital expenditures: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 117,695 | $ | 60,461 | ||||
Maoming Hengda | 48 | 2 | ||||||
Baotou Steel | 1 | 8 | ||||||
General Steel (China) & Tianwu Joint Venture | 82 | 3 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 117,826 | $ | 60,474 | ||||
Total Assets as of: | September 30, 2014 | December 31, 2013 | ||||||
Longmen Joint Venture | $ | 2,583,371 | $ | 2,573,212 | ||||
Maoming Hengda | 27,154 | 29,211 | ||||||
Baotou Steel Pipe Joint Venture | 5,601 | 4,448 | ||||||
General Steel (China) & Tianwu Joint Venture | 223,517 | 121,883 | ||||||
Interdivision assets | -73,311 | -34,213 | ||||||
Reconciling item (2) | 1,945 | 5,817 | ||||||
Total Assets | $ | 2,768,277 | $ | 2,700,358 | ||||
-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, 2014 and 2013. | |||||||
-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, 2014 and December 31, 2013. | |||||||
Subsequent_events
Subsequent events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 23 – Subsequent events | |
On July 14, 2014, the Company entered into a Subscription Agreement (the "Subscription Agreement") with Zuosheng Yu, the Company's Chief Executive Officer and a member of the Company's Board of Directors, relating to a private placement of the Company's common stock, par value $0.001 per share. On October 23, 2014, after certain closing conditions contained in the Subscription Agreement were satisfied, the transaction closed and the Company sold to Zuosheng Yu 5,000,000 shares of common stock at a purchase price of $1.50 per share (the "Purchase Price"), upon receipt of $7,500,000 in gross proceeds in accordance with the terms of the Subscription Agreement. The Purchase Price represents a 23% premium to the volume weighted average closing price of the Common Stock from March 5, 2014 to July 11, 2014, which ranged from $0.90 to $1.47 per share of common stock during the period. Upon completion of this transaction, Zuosheng Yu beneficially owned 44.7% of the Company’s common stock. | |
On September 30, 2014, Longmen Joint Venture entered into a short-term loan agreement with Shaanxi Steel, the majority shareholder of Long Steel Group, for $32.5 million (RMB 200.0 million) with annual interest rate of 7.6% and due on March 29, 2015. Longmen Joint Venture subsequently received the loan amount on October 8, 2014 and October 9, 2014. | |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis Of Accounting, Policy [Policy Text Block] | ' | |||||||||||||
(a) | Basis of presentation | |||||||||||||
The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | ||||||||||||||
Subsidiary | Percentage 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. (“Yangpu Shengtong”) | 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 | ||||||||||||||
Prior to November 19, 2013, the Company held a 60.0% equity interest in Tianwu General Steel Material Trading Co., Ltd. (“Tianwu”). 32% interest was held by General Steel (China) and 28% interest was held by Yangpu Shengtong. On November 19, 2013, the Company sold its 28% equity interest of Tianwu held by Yangpu Shengtong to Tianjin Dazhan Industry Co., Ltd., a related party through indirect common ownership, for $13.6 million (RMB 84.3 million) while retaining 32% interest held by General Steel (China). As a result of this transaction, the Company met the criteria under ASC 810-10-40-4 to deconsolidate Tianwu at the disposal date and recognized a gain of $1.0 million in the fourth quarter of 2013 in accordance with ASC 810-10-40-5. At the same time, General Steel (China)’s remaining 32% interest is accounted for as an investment in unconsolidated subsidiaries using the equity method. See Note 2(t) - Investments in unconsolidated entities for details. | ||||||||||||||
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. | ||||||||||||||
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 of Directors 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. The Supervisory Committee, in which the Company holds 2 out of 4 seats, requires a ¾ majority vote, while the Board of Directors, on 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. 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. If the Unified Management Agreement cannot be enforced, the Company would not consolidate Longmen Joint Venture as a VIE. However, the current PRC legal system has not limited the Company’s ability to enforce the Unified Management Agreement nor does the Company believe it is likely to do so in the future. The Company makes an 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, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current assets | $ | 1,037,052 | $ | 1,282,054 | ||||||||||
Plant and equipment, net | 1,508,595 | 1,262,144 | ||||||||||||
Other noncurrent assets | 37,724 | 29,014 | ||||||||||||
Total assets | 2,583,371 | 2,573,212 | ||||||||||||
Total liabilities | 3,145,353 | -3,040,879 | ||||||||||||
Net liabilities | $ | -561,982 | $ | -467,667 | ||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current liabilities: | ||||||||||||||
Short term notes payable | $ | 776,198 | $ | 988,364 | ||||||||||
Accounts payable | 579,077 | 393,816 | ||||||||||||
Accounts payable - related parties | 257,548 | 235,116 | ||||||||||||
Short term loans - bank | 204,576 | 267,688 | ||||||||||||
Short term loans - others | 54,163 | 55,844 | ||||||||||||
Short term loans - related parties | 222,792 | 125,236 | ||||||||||||
Current maturities of long-term loans – related party | 56,199 | 56,614 | ||||||||||||
Other payables and accrued liabilities | 41,277 | 37,028 | ||||||||||||
Other payables - related parties | 96,094 | 88,914 | ||||||||||||
Customer deposits | 108,340 | 87,661 | ||||||||||||
Customer deposits - related parties | 17,876 | 18,359 | ||||||||||||
Deposit due to sales representatives | 29,917 | 24,343 | ||||||||||||
Deposit due to sales representatives – related parties | 2,308 | 1,997 | ||||||||||||
Taxes payable | 2,511 | 3,357 | ||||||||||||
Deferred lease income | 2,171 | 2,187 | ||||||||||||
Capital lease obligations, current | 6,825 | 4,321 | ||||||||||||
Intercompany payable to be eliminated | 60,501 | 21,420 | ||||||||||||
Total current liabilities | 2,518,373 | 2,412,265 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long term loans - related parties | 15,925 | 16,043 | ||||||||||||
Deferred lease income - noncurrent | 73,077 | 75,257 | ||||||||||||
Capital lease obligations, noncurrent | 388,615 | 375,019 | ||||||||||||
Profit sharing liability at fair value | 149,363 | 162,295 | ||||||||||||
Total non-current liabilities | 626,980 | 628,614 | ||||||||||||
Total liabilities of consolidated VIE | $ | 3,145,353 | $ | 3,040,879 | ||||||||||
Three months ended | Three months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 559,317 | $ | 606,444 | ||||||||||
Gross profit | $ | 9,010 | $ | 8,122 | ||||||||||
Income from operations | $ | 9,746 | $ | 30,306 | ||||||||||
Net income attributable to controlling interest | $ | -3,378 | $ | 8,284 | ||||||||||
Nine months ended | Nine months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 1,740,645 | $ | 1,903,933 | ||||||||||
Gross profit (loss) | $ | 15,020 | $ | -23,704 | ||||||||||
(Loss) income from operations | $ | -21,420 | $ | 20,558 | ||||||||||
Net loss attributable to controlling interest | $ | -49,489 | $ | -18,335 | ||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Longmen Joint Venture also 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 invested in by Longmen Joint Venture in June 2007 and July 2008, respectively. 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. The assets, liabilities and the operating results of Hualong are immaterial to the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013, respectively, and for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
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 assets, liabilities and the operating results of Huatianyulong are immaterial to the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013, respectively, and for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
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 majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. | ||||||||||||||
Liquidity Disclosure [Policy Text Block] | ' | |||||||||||||
(d) | Liquidity | |||||||||||||
The Company’s accounts have been prepared under the 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 options (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 the 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, 2014 and December 31, 2013 were (5.7) and (6.5), respectively. As of September 30, 2014, the Company’s current liabilities exceed current assets by $1.5 billion. | ||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for a majority of the 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, as well as its ability to obtain external financial supports, including but not limited to lines of credit from banks and vendor financing. If Longmen Joint Venture does not maintain a sufficient level of financial support by renewing its financing terms with existing financing sources or obtaining new sources of financial support, there may be an immediate negative impact on the Company’s operations and its ability to continue as a going concern. Longmen Joint Venture has obtained different types of financial support, which are listed below by category: | ||||||||||||||
Lines of credit | ||||||||||||||
The Company has lines of credit from the listed major banks totaling $141.4 million with expiration dates ranging from November 28, 2015 to January 30, 2016. | ||||||||||||||
Banks | Amount of | Repayment Date | ||||||||||||
Line of | ||||||||||||||
Credit | ||||||||||||||
(in millions) | ||||||||||||||
China Minsheng Bank | 97.5 | 28-Nov-15 | ||||||||||||
China Everbright Bank | 19.5 | 21-Jan-16 | ||||||||||||
Huaxia Bank | 24.4 | 30-Jan-16 | ||||||||||||
Total | $ | 141.4 | ||||||||||||
As of the date of this report, the Company utilized $80.0 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 $893.8 million with the following companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 243.8 | |||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 162.5 | ||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 487.5 | ||||||||||||
Total | $ | 893.8 | ||||||||||||
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 many years. On July 30, 2014, Company A signed a five-year agreement with Longmen Joint Venture to finance its coke purchases up to $243.8 million. Company B signed a three-year agreement with Longmen Joint Venture on January 22, 2014 to finance its coke purchases up to $162.5 million. According to the above signed agreements, both Company A and B will not demand any cash payments during their respective financing periods. As of the date of this report, the Company’s payables to Company A and Company B were approximately $72.2 million and $78.6 million, respectively. | ||||||||||||||
Company C is a Fortune 500 Company. On June 28, 2013, Company C signed an agreement with Longmen Joint Venture to finance Longmen Joint Venture’s purchase of iron ore for an amount up to $487.5 million to commence on October 1, 2013 and end on March 31, 2015. On August 1, 2014, Company C signed an extension agreement with the Company and extended the financing terms to March 31, 2016. 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. As of the date of this report, the Company did not have payable to Company C. | ||||||||||||||
Other financing | ||||||||||||||
On March 5, 2014, April 22, 2014, April 23, 2014, and October 30, 2014, Longmen Joint Venture signed two-to-three-year payment extension agreements with Company D, E, F, G, H and I listed below. In addition, Shaanxi Steel, a related party, agreed to finance the construction of Longmen Joint Venture’s #5 blast furnace, which commenced in March 2013, for construction-related payments up to $321.8 million (RMB 1.98 billion) and would not demand payment from Longmen Joint Venture until it would have available funds for repayment. As of September 30, 2014, Longmen Joint Venture’s payable related to the construction of the #5 blast furnace amounted to $218.9 million. In total, Longmen Joint Venture can obtain $662.6 million in financial support from payment extensions granted by the following seven companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.3 | |||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86 | ||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.3 | ||||||||||||
Company G – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company H – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company I – related party | October 30, 2014 – October 30, 2017 | 81.3 | ||||||||||||
Shaanxi Steel – related party | Extended until funds available for repayment | 218.9 | ||||||||||||
Total | $ | 662.6 | ||||||||||||
As of the date of this report, our payables to Company D, Company E, Company F, Company G, Company H, Company I and Shaanxi Steel are approximately $16.3 million, $41.4 million, $11.6 million, $0, $0, $0 and $81.3 million, 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, 2014, Longmen Joint Venture has collected a total amount of $32.2 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, 2014 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, 2015. The detailed breakdown of Longmen Joint Venture’s estimated cash flows are listed below. | ||||||||||||||
Cash inflow (outflow) | ||||||||||||||
(in millions) | ||||||||||||||
For the twelve months | ||||||||||||||
ending September 30, | ||||||||||||||
2015 | ||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of September 30, 2014 (unaudited) | $ | -1,537.90 | ||||||||||||
Projected cash financing and outflows: | ||||||||||||||
Cash provided by lines of credit from banks | 141.4 | |||||||||||||
Cash provided by vendor financing | 893.8 | |||||||||||||
Cash provided by other financing | 662.6 | |||||||||||||
Cash provided by sales representatives | 32.2 | |||||||||||||
Cash projected to be used in operations in the twelve months ending September 30, 2015 | -33.5 | |||||||||||||
Cash projected to be used for financing cost in the twelve months ending September 30, 2015 | -58 | |||||||||||||
Net projected change in cash for the twelve months ending September 30, 2015 | $ | 100.6 | ||||||||||||
As a result, the unaudited condensed consolidated financial statements as of September 30, 2014 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 consolidated financial statements and footnotes. Significant accounting estimates reflected in the Company’s consolidated financial statements include the fair value of the profit sharing liability, the useful lives of and impairment of property, plant and equipment, potential losses on uncollectible receivables, the allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital leases and the present value of the net minimum lease payments of the capital leases. 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 price fluctuation of raw materials and energy prices as part of its normal operations. The Company does not utilize 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, 2014 and December 31, 2013 amounted to $405.4 million and $431.3 million, including $ 5.1 million and $ 2.0 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of September 30, 2014, $ 0.1 million cash in the bank was covered by insurance. The Company has not experienced any losses in its bank accounts and deposits its cash in a number of different banks to minimize its exposure to credit risk. | ||||||||||||||
The Company’s five major customers are all distributors and collectively represented 16.0% and 16.9% of the Company’s total sales for the three and nine months ended September 30, 2014, respectively. None of the five major customers accounted for more than 10% of the total sales for the three and nine months ended September 30, 2014. The Company’s five major customers represented 25.5% and 23.4% of the Company’s total sales for the three and nine months ended September 30, 2013, respectively. None of the five major customers individually accounted for more than 10% of the total sales for the three months or the nine months ended September 30, 2013. None of the five major customers has accounts receivable, including related parties, with the Company as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
For the three and nine months ended September 30, 2014, the Company purchased 18.8% and 29.5% 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 end September 30, 2014. Purchases from the five major suppliers represented 15.3% and 29.3% of the Company’s total purchases for the three months and nine months ended September 30, 2013, respectively. None of the five major suppliers individually accounted for more than 10% of the total purchases for the three months or nine months ended September 30, 2013, respectively. These five suppliers accounted for 25.7% and 29.1% of total accounts payable, including related parties, as of September 30, 2014 and December 31, 2013, respectively. None of the five major suppliers individually accounted for more than 10% of total accounts payable as September 30, 2014 and December 31, 2013. | ||||||||||||||
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 and VIE 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 statements of operations 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 $(0.2) million and $0.7 million as of September 30, 2014 and December 31, 2013, respectively. The balance sheet amounts, with the exception of equity, at September 30, 2014 and December 31, 2013 were translated at 6.15 RMB and 6.11 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended September 30, 2014 and 2013 were 6.16 RMB and 6.16 RMB, respectively. The average translation rates applied to the statements of operations for the nine months ended September 30, 2014 and 2013 were 6.15 RMB and 6.21 RMB, respectively. Cash flows are also translated at average translation rates for the periods; as a result, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances in 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 standard 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 investments, 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 carrying value of the long term loans-related party approximates its fair value as of the reporting date as their stated interest rates approximate current rates available. | ||||||||||||||
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. | |||||||||||||
The Company analyzes all financial instruments with features of both liabilities and equity, pursuant to which warrants previously issued by the Company were required to be recorded as a liability at fair value and marked to market each reporting period. The warrants were accounted for as derivative liabilities and recorded at their fair value, with the change in fair value charged or credited to income each period. The warrants expired unexercised on May 13, 2013. Prior to their expiration, the fair value of the warrants was estimated using a binomial lattice model, using level 3 inputs. | ||||||||||||||
As described in Note 15 - Capital lease obligations, payments related to the capital lease of the Asset Pool consist of two components: (1) a fixed monthly payment of $2.3 million (RMB 14.6 million), based on Shaanxi Steel’s cost to construct the assets, to be paid for the 20 year term of the Unified Management Agreement; and (2) 40% of any remaining pre-tax profits from the Asset Pool, which includes Longmen Joint Venture and the constructed iron and steel making facilities. The aforementioned profit sharing component meets the definition of a derivative instrument under ASC 815-10-15-83 and, accordingly, the profit sharing liability is accounted for separately as a derivative liability. It was recognized initially at its estimated fair value at inception. The estimated fair value is adjusted each reporting period, with changes in the estimated fair value of the profit sharing liability charged or credited to operating income each period. | ||||||||||||||
The Company determines the fair value of the profit sharing liability using Level 3 inputs by considering the present value of Longmen Joint Venture’s projected profits/losses, discounted based on our average borrowing rate, which is currently 7.3%. | ||||||||||||||
The fair value of the profit sharing liability will change each period as a result of (a) any changes in our estimate of Longmen Joint Venture’s projected profits/losses over the remaining term of the Agreement, (b) any change in the discount rate used, based on changes in our current or expected borrowing rate, (c) the change in fair value related to the passage of time and change in the number of future periods over which the present value of future cash flows is estimated and (d) any difference between the previously estimated operating results for the current period and actual results. | ||||||||||||||
Each period, the Company considers whether the discount rate based on the Company’s average borrowing rate should be adjusted based upon the current and expected future financial condition of the Company. To date, the Company has not considered any adjustment to be necessary based upon, but not limited to, the following assumptions: | ||||||||||||||
⋅ | because the joint venture partner of Longmen Joint Venture is a state-owned enterprise with an excellent credit history, PRC banks grant similar credit treatment to Longmen Joint Venture in terms of credit availability | |||||||||||||
⋅ | the current average borrowing rate of enterprises in the steel industry in the PRC is similar to this borrowing rate | |||||||||||||
⋅ | the current new/renewal borrowing rates of the Company’s bank loans are similar to prior periods | |||||||||||||
⋅ | the People’s Bank of China has not recently adjusted any borrowing rate | |||||||||||||
⋅ | PRC bank interest rates are not industry specific. The downtrend in the steel industry did not materially impact the bank borrowing rates for steel companies | |||||||||||||
⋅ | the bank interest rates are assessed by each individual bank and governed by the Chinese banking regulatory bodies. Reports from credit rating research firms are not commonly used by PRC banks | |||||||||||||
The projected profits/losses in Longmen Joint Venture are based upon, but not limited to, the following assumptions: | ||||||||||||||
⋅ | 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 | |||||||||||||
⋅ | interest rate index | |||||||||||||
⋅ | gross national product index | |||||||||||||
⋅ | industry index | |||||||||||||
⋅ | government policy | |||||||||||||
From inception to December 31, 2012, the assumptions underlying the estimated fair value did not change significantly. Beginning in the first quarter of 2013, the assumptions related to unit selling prices and costs were revised, resulting in a reduction of the estimated profit sharing liability. These assumptions were further revised during 2013. The above assumptions were again reviewed by the Company at September 30, 2014 and the assumptions related to the projected growth in the steel market and costs were revised, resulting in a further reduction of the estimated profit sharing liability. For the nine months ended September 30, 2014, the Company recognized a gain on the change in the fair value of the profit sharing liability of $11.8 million due to a $17.1 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits and a $3.4 million reduction resulting from the Asset Pool’s operating results for the nine months ended September 30, 2014 being slightly less favorable than previously estimated as of December 31, 2013, offset by a $8.8 million loss from the present value discount. The estimated fair value of the profit sharing liability at September 30, 2014 is $149.4 million. | ||||||||||||||
Changes in any of the assumptions used to estimate the fair value of the profit sharing liability will change the liability accordingly. If we were to reduce the projected bank borrowing rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of September 30, 2014 would have been $170.5 million and we would decrease the gain from the change in the fair value of the profit sharing liability by $21.2 million. If we were to 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 September 30, 2014 would have been $142.6 million and we would increase the gain from the change in the fair value of the profit sharing liability by $6.8 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, 2014: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||
of September 30, | 2014 | |||||||||||||
2014 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
Total | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
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, 2013: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||
of December 31, | 2013 | |||||||||||||
2013 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
Total | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
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 months ended September 30, 2014 and for the year ended December 31, 2013: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Beginning balance | $ | 162,295 | $ | 328,828 | ||||||||||
Change in fair value of profit sharing liability: | ||||||||||||||
Change in estimate of future operating profits | -17,146 | -183,528 | ||||||||||||
Change in discount rate | - | - | ||||||||||||
Interest expense - present value discount amortization | 8,795 | 16,872 | ||||||||||||
Difference between the previously estimated operating results for the current period and actual results | -3,407 | -7,913 | ||||||||||||
Change in derivative liabilities - warrants | - | 1 | ||||||||||||
Exchange rate effect | -1,174 | 8,035 | ||||||||||||
Ending balance | $ | 149,363 | $ | 162,295 | ||||||||||
Except for the derivative liabilities related to the profit sharing liability and to the warrants issued by the Company, which expired on May 13, 2013, the Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value. | ||||||||||||||
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 requests 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 expense for early submission requests for payment for the three months ended September 30, 2014 and 2013 amounted to $10.2 million and 9.6 million, respectively, and amounted to $37.1 million and $26.9 million, respectively, for the nine months ended September 30, 2014 and 2013. | ||||||||||||||
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 | 10-20 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 account for 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 betterments 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 their 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] | ' | |||||||||||||
(k) | 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, 2014, 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 has a twenty-year term. | ||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.1 million (RMB 148.3 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 in | ||||||||||||
(in thousands) | ||||||||||||||
General Steel (China) | $ | 3,856 | 2050 & 2053 | |||||||||||
Longmen Joint Venture | $ | 24,097 | 2048 & 2052 | |||||||||||
Maoming Hengda | $ | 2,697 | 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 rights 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] | ' | |||||||||||||
(l) | 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, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,130 | 24.1 | $ | 1,215 | 24.1 | |||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of September 30, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,612 | 32 | $ | 15,728 | 32 | |||||||
Total investment income in unconsolidated subsidiaries amounted to $0.03 million and $0.05 million for the three months ended September 30, 2014 and 2013, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2014 and 2013, respectively, which was included in “Income from equity investments” in the condensed consolidated statements of operations and comprehensive (loss) income. | ||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||
(m) | Revenue recognition | |||||||||||||
Sales are recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are met are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product. | ||||||||||||||
The Company infrequently engages in trading transactions in which the Company acts as an agent between the suppliers and the customers. The trading arrangements are such that the suppliers are the primary obligors, the Company does not have any general inventory risk, physical inventory loss risk or credit risk, and the Company does not have latitude in establishing price. Sales and cost of goods sold from these trading arrangements are recorded at the net amount in accordance with ASC 605-45. | ||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||||
(n) | Recently issued accounting pronouncements | |||||||||||||
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments stipulate that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost should be recognized over the required service period, if it is probable that the performance condition would be achieved. The amendments in this Accounting Standards Update are effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company’s condensed consolidated financial statements. | ||||||||||||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity's liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity's liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity's liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have material impact on the Company’s condensed consolidated financial statements, although there may be additional disclosures upon adoption. | ||||||||||||||
In November 2014, the FASB issued Accounting Standard Update (ASU) No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, to clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The assessment of the substance of the relevant terms and features should incorporate a consideration of: (1) the characteristics of the terms and features themselves; (2) the circumstances under which the hybrid financial instrument was issued or acquired; and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on the Company’s condensed consolidated financial statements. | ||||||||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | ' | |||||||||||||
The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries: | ||||||||||||||
Subsidiary | Percentage 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. (“Yangpu Shengtong”) | 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 | % | |||||||||||
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, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current assets | $ | 1,037,052 | $ | 1,282,054 | ||||||||||
Plant and equipment, net | 1,508,595 | 1,262,144 | ||||||||||||
Other noncurrent assets | 37,724 | 29,014 | ||||||||||||
Total assets | 2,583,371 | 2,573,212 | ||||||||||||
Total liabilities | 3,145,353 | -3,040,879 | ||||||||||||
Net liabilities | $ | -561,982 | $ | -467,667 | ||||||||||
Schedule Of Liabilities Of Variable Interest Entities and Subsidiaries [Table Text Block] | ' | |||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current liabilities: | ||||||||||||||
Short term notes payable | $ | 776,198 | $ | 988,364 | ||||||||||
Accounts payable | 579,077 | 393,816 | ||||||||||||
Accounts payable - related parties | 257,548 | 235,116 | ||||||||||||
Short term loans - bank | 204,576 | 267,688 | ||||||||||||
Short term loans - others | 54,163 | 55,844 | ||||||||||||
Short term loans - related parties | 222,792 | 125,236 | ||||||||||||
Current maturities of long-term loans – related party | 56,199 | 56,614 | ||||||||||||
Other payables and accrued liabilities | 41,277 | 37,028 | ||||||||||||
Other payables - related parties | 96,094 | 88,914 | ||||||||||||
Customer deposits | 108,340 | 87,661 | ||||||||||||
Customer deposits - related parties | 17,876 | 18,359 | ||||||||||||
Deposit due to sales representatives | 29,917 | 24,343 | ||||||||||||
Deposit due to sales representatives – related parties | 2,308 | 1,997 | ||||||||||||
Taxes payable | 2,511 | 3,357 | ||||||||||||
Deferred lease income | 2,171 | 2,187 | ||||||||||||
Capital lease obligations, current | 6,825 | 4,321 | ||||||||||||
Intercompany payable to be eliminated | 60,501 | 21,420 | ||||||||||||
Total current liabilities | 2,518,373 | 2,412,265 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long term loans - related parties | 15,925 | 16,043 | ||||||||||||
Deferred lease income - noncurrent | 73,077 | 75,257 | ||||||||||||
Capital lease obligations, noncurrent | 388,615 | 375,019 | ||||||||||||
Profit sharing liability at fair value | 149,363 | 162,295 | ||||||||||||
Total non-current liabilities | 626,980 | 628,614 | ||||||||||||
Total liabilities of consolidated VIE | $ | 3,145,353 | $ | 3,040,879 | ||||||||||
Schedule Of Statement Of Operations Of Variable Interest Entities and Subsidiaries [Table Text Block] | ' | |||||||||||||
Three months ended | Three months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 559,317 | $ | 606,444 | ||||||||||
Gross profit | $ | 9,010 | $ | 8,122 | ||||||||||
Income from operations | $ | 9,746 | $ | 30,306 | ||||||||||
Net income attributable to controlling interest | $ | -3,378 | $ | 8,284 | ||||||||||
Nine months ended | Nine months ended | |||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Sales | $ | 1,740,645 | $ | 1,903,933 | ||||||||||
Gross profit (loss) | $ | 15,020 | $ | -23,704 | ||||||||||
(Loss) income from operations | $ | -21,420 | $ | 20,558 | ||||||||||
Net loss attributable to controlling interest | $ | -49,489 | $ | -18,335 | ||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | ' | |||||||||||||
The Company has lines of credit from the listed major banks totaling $141.4 million with expiration dates ranging from November 28, 2015 to January 30, 2016. | ||||||||||||||
Banks | Amount of | Repayment Date | ||||||||||||
Line of | ||||||||||||||
Credit | ||||||||||||||
(in millions) | ||||||||||||||
China Minsheng Bank | 97.5 | 28-Nov-15 | ||||||||||||
China Everbright Bank | 19.5 | 21-Jan-16 | ||||||||||||
Huaxia Bank | 24.4 | 30-Jan-16 | ||||||||||||
Total | $ | 141.4 | ||||||||||||
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, 2014: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at September 30, | ||||||||||||
of September 30, | 2014 | |||||||||||||
2014 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
Total | $ | 149,363 | $ | - | $ | - | $ | 149,363 | ||||||
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, 2013: | ||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | ||||||||||||
of December 31, | 2013 | |||||||||||||
2013 | Using Fair Value Hierarchy | |||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Profit sharing liability | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
Total | $ | 162,295 | $ | - | $ | - | $ | 162,295 | ||||||
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 months ended September 30, 2014 and for the year ended December 31, 2013: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||
Beginning balance | $ | 162,295 | $ | 328,828 | ||||||||||
Change in fair value of profit sharing liability: | ||||||||||||||
Change in estimate of future operating profits | -17,146 | -183,528 | ||||||||||||
Change in discount rate | - | - | ||||||||||||
Interest expense - present value discount amortization | 8,795 | 16,872 | ||||||||||||
Difference between the previously estimated operating results for the current period and actual results | -3,407 | -7,913 | ||||||||||||
Change in derivative liabilities - warrants | - | 1 | ||||||||||||
Exchange rate effect | -1,174 | 8,035 | ||||||||||||
Ending balance | $ | 149,363 | $ | 162,295 | ||||||||||
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 | 10-20 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 in | ||||||||||||
(in thousands) | ||||||||||||||
General Steel (China) | $ | 3,856 | 2050 & 2053 | |||||||||||
Longmen Joint Venture | $ | 24,097 | 2048 & 2052 | |||||||||||
Maoming Hengda | $ | 2,697 | 2054 | |||||||||||
Schedule Of Investments By Affiliates [Table Text Block] | ' | |||||||||||||
The table below summarizes Longmen Joint Venture’s investment holdings as of September 30, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,130 | 24.1 | $ | 1,215 | 24.1 | |||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of September 30, 2014 and December 31, 2013. | ||||||||||||||
Unconsolidated entities | Year | September 30, | Owned | December 31, | Owned | |||||||||
acquired | 2014 | % | 2013 | % | ||||||||||
Net investment | Net investment | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,612 | 32 | $ | 15,728 | 32 | |||||||
Longmen Joint Venture [Member] | ' | |||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | ' | |||||||||||||
The detailed breakdown of Longmen Joint Venture’s estimated cash flows are listed below. | ||||||||||||||
Cash inflow (outflow) | ||||||||||||||
(in millions) | ||||||||||||||
For the twelve months | ||||||||||||||
ending September 30, | ||||||||||||||
2015 | ||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of September 30, 2014 (unaudited) | $ | -1,537.90 | ||||||||||||
Projected cash financing and outflows: | ||||||||||||||
Cash provided by lines of credit from banks | 141.4 | |||||||||||||
Cash provided by vendor financing | 893.8 | |||||||||||||
Cash provided by other financing | 662.6 | |||||||||||||
Cash provided by sales representatives | 32.2 | |||||||||||||
Cash projected to be used in operations in the twelve months ending September 30, 2015 | -33.5 | |||||||||||||
Cash projected to be used for financing cost in the twelve months ending September 30, 2015 | -58 | |||||||||||||
Net projected change in cash for the twelve months ending September 30, 2015 | $ | 100.6 | ||||||||||||
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 $893.8 million with the following companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 243.8 | |||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 162.5 | ||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 487.5 | ||||||||||||
Total | $ | 893.8 | ||||||||||||
Other Financing [Member] | ' | |||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | ' | |||||||||||||
As of September 30, 2014, Longmen Joint Venture’s payable related to the construction of the #5 blast furnace amounted to $218.9 million. In total, Longmen Joint Venture can obtain $662.6 million in financial support from payment extensions granted by the following seven companies: | ||||||||||||||
Company | Financing Period | Financing Amount | ||||||||||||
(in millions) | ||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.3 | |||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86 | ||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.3 | ||||||||||||
Company G – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company H – related party | March 5, 2014 – March 5, 2016 | 56.9 | ||||||||||||
Company I – related party | October 30, 2014 – October 30, 2017 | 81.3 | ||||||||||||
Shaanxi Steel – related party | Extended until funds available for repayment | 218.9 | ||||||||||||
Total | $ | 662.6 | ||||||||||||
Loans_receivable_including_rel1
Loans receivable (including related parties) (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ' | |||||||
Schedule Of Loans Receivable Related Parties Current [Table Text Block] | ' | |||||||
The Company had the following loan receivable due within one year as of: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to third party; due on demand and non-interest bearing. | $ | 14,625 | $ | - | ||||
Total loan receivable | $ | 14,625 | $ | - | ||||
The Company had the following loan receivable – related party due within one year as of: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to Teamlink Investment Co., Ltd; due in June, July and December 2014; interest rate is 4.75% | $ | - | $ | 4,540 | ||||
Total loan receivable – related party | $ | - | $ | 4,540 | ||||
Accounts_receivable_including_1
Accounts receivable (including related parties), net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 9,209 | $ | 5,131 | ||||
Less: allowance for doubtful accounts | -728 | -1,053 | ||||||
Accounts receivable – related parties | 2,153 | 2,942 | ||||||
Net accounts receivable | $ | 10,634 | $ | 7,020 | ||||
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | ' | |||||||
Changes in the allowance for doubtful accounts are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 1,053 | $ | 1,367 | ||||
Charge to expense | - | 96 | ||||||
Less: recovery | -317 | -449 | ||||||
Exchange rate effect | -8 | 39 | ||||||
Ending balance | $ | 728 | $ | 1,053 | ||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 22,459 | $ | 21,040 | ||||
Raw materials | 157,872 | 164,301 | ||||||
Finished goods | 86,762 | 42,977 | ||||||
Less: allowance for inventory valuation | -17,076 | -15,397 | ||||||
Total inventories | $ | 250,017 | $ | 212,921 | ||||
Summary Of Inventory Valuation Allowance [Table Text Block] | ' | |||||||
Changes in the allowance for inventory valuation are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 15,397 | $ | 9,585 | ||||
Addition | 17,099 | 15,194 | ||||||
Less: write-off | -15,304 | -9,757 | ||||||
Exchange rate effect | -116 | 375 | ||||||
Ending balance | $ | 17,076 | $ | 15,397 | ||||
Plant_and_equipment_net_Tables
Plant and equipment, net (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||||
Plant and equipment consist of the following: | ||||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Buildings and improvements | $ | 311,562 | $ | 274,402 | ||||||
Machinery | 657,680 | 667,093 | ||||||||
Machinery under capital lease | 625,196 | 623,895 | ||||||||
Transportation and other equipment | 23,177 | 22,991 | ||||||||
Construction in progress | 294,062 | 11,412 | ||||||||
Subtotal | 1,911,677 | 1,599,793 | ||||||||
Less: accumulated depreciation | -395,668 | -327,886 | ||||||||
Total | $ | 1,516,009 | $ | 1,271,907 | ||||||
Schedule Of Construction In Progress [Table Text Block] | ' | |||||||||
Construction in progress consisted of the following as of September 30, 2014: | ||||||||||
Construction in progress | Value | Completion | Estimated | |||||||
additional cost to | ||||||||||
complete | ||||||||||
description | (In thousands) | date | (In thousands) | |||||||
Equipment updates | 1,992 | Dec-14 | 12,869 | |||||||
Sintering machine construction | 84,831 | Nov-14 | 59,875 | |||||||
#5 blast furnace construction | 185,354 | Dec-14 | 32,709 | |||||||
Reconstruction of miscellaneous factory buildings | 5,649 | Sep-15 | 5,242 | |||||||
Project materials | 2,139 | - | ||||||||
Others | 14,097 | - | ||||||||
Total | $ | 294,062 | $ | 110,695 | ||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||||
The carrying value of assets acquired under the capital lease consists of the following: | ||||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 625,196 | $ | 623,895 | ||||||
Less: accumulated depreciation | -99,777 | -77,086 | ||||||||
Carrying value of leased assets | $ | 525,419 | $ | 546,809 | ||||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
Intangible assets consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,650 | $ | 30,884 | ||||
Mining right | 2,441 | 2,459 | ||||||
Software | 1,049 | 743 | ||||||
Subtotal | 34,140 | 34,086 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -8,931 | -8,498 | ||||||
Accumulated amortization – mining right | -1,396 | -1,320 | ||||||
Accumulated amortization – software | -692 | -561 | ||||||
Subtotal | -11,019 | -10,379 | ||||||
Intangible assets, net | $ | 23,121 | $ | 23,707 | ||||
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: | ||||||||
Year ending | Estimated | Gross carrying | ||||||
amortization and | amount | |||||||
depletion expenses | ||||||||
(in thousands) | (in thousands) | |||||||
30-Sep-15 | $ | 966 | 22,155 | |||||
30-Sep-16 | 966 | 21,189 | ||||||
30-Sep-17 | 966 | 20,223 | ||||||
30-Sep-18 | 966 | 19,257 | ||||||
30-Sep-19 | 966 | 18,291 | ||||||
Thereafter | 18,291 | - | ||||||
Total | $ | 23,121 | ||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term loans due to related party | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due on various dates through November 2015 and interest rate is 5.6% per annum. | $ | 72,124 | $ | 72,657 | ||||
Less: Current maturities of long-term loans – related party | -67,249 | -53,013 | ||||||
Long-term loans - related party | $ | 4,875 | $ | 19,644 | ||||
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, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due various dates from December 2014 to January 2015. Restricted cash required of $8.1 million and $16.4 million as of September 30, 2014 and December 31, 2013, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 8,125 | $ | 29,466 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from October 2014 to September 2015. $362.9 million restricted cash and $26.0 million notes receivable are secured for notes payable as of September 30, 2014, and comparatively $383.0 million restricted cash and $231.7 million notes receivable secured as of December 31, 2013, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 776,198 | 988,364 | ||||||
Total short-term notes payable | $ | 784,323 | $ | 1,017,830 | ||||
Due To Banks [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Due to banks | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from November 2014 to August 2015. Weighted average interest rate was 7.2% per annum and 7.2% per annum as of September 30, 2014 and December 31, 2013, respectively; some are guaranteed by third parties and related parties. These loans were either repaid or renewed subsequently on the due dates. | $ | 43,713 | $ | 34,229 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from December 2014 to July 2015. Weighted average interest rate was 6.9% per annum and 6.3% per annum as of September 30, 2014 and December 31, 2013, respectively; some are guaranteed by third parties, accounts receivable, restricted cash or notes receivables. $82.5 million and $163.9 million restricted notes receivable were secured for the loans as of September 30, 2014 and December 31, 2013, respectively; $12.2 million and $0 restricted cash were secured for the loans as of September 30, 2014 and December 31, 2013, respectively; These loans were either repaid or renewed subsequently on the due dates. | 204,576 | 267,688 | ||||||
Total short-term loans - bank | $ | 248,289 | $ | 301,917 | ||||
Due To Unrelated Parties [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Due to unrelated parties | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from December 2014 to September 2015, and weighted average interest rate was 5.6% per annum and 5.2% per annum as of September 30, 2014 and December 31, 2013, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 37,899 | $ | 22,720 | ||||
Longmen Joint Venture: Loans from financing sales. | 16,264 | 33,124 | ||||||
Maoming Hengda: Loans from one unrelated party and one related party, due on demand, none interest bearing. | 6,177 | 6,223 | ||||||
Total short-term loans – others | $ | 60,340 | $ | 62,067 | ||||
Due To Related Parties [Member] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
Short term loans due to related parties | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rate is 10% per annum. | $ | 668 | $ | 1,458 | ||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due on demand, and interest rate is 7.0% per annum. | 5,467 | 28,216 | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group due on various dates from November 2014 to July 2015, and interest rate is 8.0% per annum. | 95,875 | 49,110 | ||||||
Longmen Joint Venture: Loans from financing sales. | 121,450 | 47,909 | ||||||
Total short-term loans - related parties | $ | 223,460 | $ | 126,693 | ||||
Capital_lease_obligations_Tabl
Capital lease obligations (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
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 obligations for the next five years as of September 30, 2014: | |||||
Year ending September 30, | Capital Lease Obligations | ||||
Minimum Lease Payments | |||||
(in thousands) | |||||
2015 | $ | 8,320 | |||
2016 | 5,804 | ||||
2017 | 188,812 | ||||
2018 | 32,510 | ||||
2019 | 29,957 | ||||
Thereafter | 331,209 | ||||
Total minimum lease payments | 596,612 | ||||
Less: amounts representing interest | -201,172 | ||||
Ending balance | $ | 395,440 | |||
Taxes_Tables
Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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 and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||
(In thousands) | Three months ended | Three months ended | ||||||
September 30, 2014 | September 30, 2013 | |||||||
Current | $ | 93 | $ | 25 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 93 | $ | 25 | ||||
(In thousands) | Nine months ended | Nine months ended | ||||||
September 30, 2014 | September 30, 2013 | |||||||
Current | $ | 205 | $ | 201 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 205 | $ | 201 | ||||
Summary of Valuation Allowance [Table Text Block] | ' | |||||||
Movement of valuation allowance: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 97,569 | $ | 72,891 | ||||
Current period addition | 4,567 | 23,293 | ||||||
Current period reversal | -214 | -1,206 | ||||||
Exchange difference | -721 | 2,591 | ||||||
Ending balance | $ | 101,201 | $ | 97,569 | ||||
Schedule Of Taxes Payable [Table Text Block] | ' | |||||||
Taxes payable consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 1,731 | $ | 2,211 | ||||
Income taxes payable | 256 | 173 | ||||||
Other taxes | 1,943 | 2,244 | ||||||
Totals | $ | 3,930 | $ | 4,628 | ||||
Related_party_transactions_and1
Related party transactions and balances (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||||
The carrying value of assets acquired under the capital lease consists of the following: | ||||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 625,196 | $ | 623,895 | ||||||
Less: accumulated depreciation | -99,777 | -77,086 | ||||||||
Carrying value of leased assets | $ | 525,419 | $ | 546,809 | ||||||
Schedule Of Related Party Sales [Table Text Block] | ' | |||||||||
b. The following chart summarizes sales to related parties for the three and nine months ended September 30, 2014 and 2013. | ||||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 45,200 | $ | 63,793 | |||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group* | - | 1,081 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group* | 22,126 | 85 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group* | 22,216 | 19,866 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 734 | 979 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 14,406 | 7,951 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 1,998 | 9 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 1,782 | |||||||
Total | $ | 106,680 | $ | 95,546 | ||||||
*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. | ||||||||||
Name of related parties | Relationship | Nine months ended | Nine months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 115,150 | $ | 226,754 | |||||
Sichuan Yutai Trading Co., Ltd | Significant influence by Long Steel Group | - | 72 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | - | 21,491 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 22,946 | 15,681 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 69,919 | 56,545 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,831 | 2,390 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 35,795 | 22,577 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | 13,733 | 2,122 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 8,888 | 33,075 | |||||||
Total | $ | 268,262 | $ | 380,707 | ||||||
Sales to related parties in trading transactions, which were netted against the corresponding cost of goods sold, amounted to $49.2 million and $141.1 million for the three and nine months ended September 30, 2014, respectively. See Note 2(m) Revenue Recognition for details. | ||||||||||
Schedule Of Related Party Purchases [Table Text Block] | ' | |||||||||
c. The following charts summarize purchases from related parties for the nine months ended three and nine months ended September 30, 2014 and 2013. | ||||||||||
Name of related parties | Relationship | Three months | Three months | |||||||
ended | ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 27,649 | $ | 101,606 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 41,690 | 31,331 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 32,536 | 1,181 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 1 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 7,636 | 10,529 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | - | 1,726 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding** | 5,090 | - | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 16,764 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaaxi Steel | 13,441 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | - | 64 | |||||||
Total | $ | 144,806 | $ | 146,438 | ||||||
**The CEO referred to herein is the chief executive officer of General Steel Holdings, Inc. | ||||||||||
Name of related parties | Relationship | Nine months ended | Nine months ended | |||||||
September 30, 2014 | September 30, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 279,925 | $ | 376,104 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 125,957 | 148,322 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 38,456 | 13,678 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 53 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 212 | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 21,857 | 28,618 | |||||||
Beijing Daishang Trading Co., Ltd. | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | - | 6,635 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 83,649 | - | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 13,618 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 45,604 | - | |||||||
Maoming Shengze Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 16,764 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaaxi Steel | 14,385 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 140 | 300 | |||||||
Total | $ | 640,355 | $ | 573,922 | ||||||
Schedule Of Related Party Transactions Loan Receivables From Related Party [Table Text Block] | ' | |||||||||
a. | Loans receivable – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Teamlink Investment Co., Ltd | Partially owned by CEO through indirect shareholding | - | 4,540 | |||||||
Total | $ | - | $ | 4,540 | ||||||
Schedule Of Related Party Transactions, Accounts Receivables From Related Party [Table Text Block] | ' | |||||||||
b. | Accounts receivables – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 173 | $ | 548 | |||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 19 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,961 | 1,741 | |||||||
Others | - | 634 | ||||||||
Total | $ | 2,153 | $ | 2,942 | ||||||
Schedule Of Related Party Transactions, Other Receivables Related Parties [Table Text Block] | ' | |||||||||
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, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 16,549 | $ | 406 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,137 | 46,439 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 9,391 | 1,247 | |||||||
Tianjin Dazhan Industry Co, Ltd | Partially owned by CEO through indirect shareholding | 24,311 | 491 | |||||||
Beijing Shenhua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 5,840 | 4,901 | |||||||
Tianjin Hengying Trading Co., Ltd. | Partially owned by CEO through indirect shareholding | 13,299 | - | |||||||
Victory Energy Resource Co., Ltd | Partially owned by CEO through indirect shareholding | 1,131 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 322 | 622 | |||||||
Total | $ | 71,980 | $ | 54,106 | ||||||
Schedule Of Related Party Transactions, Advances On Inventory Purchase From Related Parties [Table Text Block] | ' | |||||||||
d. | Advances on inventory purchase – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 87 | $ | 9,123 | |||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 25,607 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 11,721 | 10,343 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 51,304 | 16,158 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | 20,868 | 555 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 43,888 | 21,197 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 31 | 20 | |||||||
Total | $ | 127,899 | $ | 83,003 | ||||||
Schedule Of Related Party Transactions, Accounts Payable Related Parties [Table Text Block] | ' | |||||||||
e. | Accounts payable - related parties: | |||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 72,240 | $ | 58,163 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 106,480 | 134,758 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 25,066 | 29,990 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 945 | 958 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 31,990 | 8,714 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 1 | |||||||
Henan Xinmi Kanghua Fire Refractory Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 799 | 716 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 36 | 1,004 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 19,207 | 759 | |||||||
Tianjin General Qiugang Pipe Co., Ltd. | Partially owned by CEO through indirect shareholding | 8,136 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 845 | 629 | |||||||
Total | $ | 265,744 | $ | 235,692 | ||||||
Schedule Of Related Party Transactions, Short Term Loans Related Parties [Table Text Block] | ' | |||||||||
f. | Short-term loans - related parties: | |||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 95,875 | $ | 49,110 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 74,171 | 28,216 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 52,746 | 33,183 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 8,178 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | - | 6,548 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 668 | 1,458 | |||||||
Total | $ | 223,460 | $ | 126,693 | ||||||
Schedule Of Related Party Transactions Current Maturities Of Long Term Loans Related Parties [Table Text Block] | ' | |||||||||
g. | Current maturities of long-term loans – related parties | |||||||||
Name of related party | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 67,249 | $ | 53,013 | |||||
Total | $ | 67,249 | $ | 53,013 | ||||||
Schedule Of Related Party Transactions, Other Payable Related Parties [Table Text Block] | ' | |||||||||
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. | ||||||||||
Name of related parties | Relationship | September 30, | December 31, | |||||||
2014 | 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 11,731 | $ | 380 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 71,671 | 43,636 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 3,727 | 44,363 | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 1,125 | 895 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 362 | 291 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 9,329 | 473 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 2,723 | 1,745 | |||||||
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 | 807 | 921 | |||||||
Total | $ | 101,475 | $ | 94,079 | ||||||
Schedule Of Related Party Transactions, Customer Deposits Related Parties [Table Text Block] | ' | |||||||||
i. | Customer deposits – related parties: | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | $ | 10 | $ | 10 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 386 | - | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 17,282 | 15,038 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 16 | 2,748 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | - | 275 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 95,798 | 46,521 | |||||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | 182 | - | |||||||
Others | - | 289 | ||||||||
Total | $ | 113,674 | $ | 64,881 | ||||||
Schedule Of Related Party Transactions, Deposits Due To Sales Representatives [Table Text Block] | ' | |||||||||
j. | Deposits due to sales representatives – related parties | |||||||||
Name of related parties | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Gansu Yulong Trading Co., Ltd. | Significant influence by Long Steel Group | $ | 1,073 | $ | 1,408 | |||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 585 | 589 | |||||||
Shaanxi Haiyan Trading Co., Ltd. | Significant influence by Long Steel Group | 650 | - | |||||||
Total | $ | 2,308 | $ | 1,997 | ||||||
Schedule Of Related Party Transactions, Long Term Loans Related Parties [Table Text Block] | ' | |||||||||
k. | Long-term loans – related party: | |||||||||
Name of related party | Relationship | September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 4,875 | $ | 19,644 | |||||
Total | $ | 4,875 | $ | 19,644 | ||||||
Schedule Of Related Party Transactions, Deferred Lease Income [Table Text Block] | ' | |||||||||
l. | Deferred lease income | |||||||||
September 30, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 77,444 | $ | 77,199 | ||||||
Less: Lease income realized | -1,630 | -2,158 | ||||||||
Exchange rate effect | -566 | 2,403 | ||||||||
Ending balance | 75,248 | 77,444 | ||||||||
Current portion | -2,171 | -2,187 | ||||||||
Noncurrent portion | $ | 73,077 | $ | 75,257 | ||||||
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, 2014 | December 31, 2013 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 601,398 | $ | 605,839 | ||||||
Less: accumulated depreciation | -97,602 | -76,740 | ||||||||
Carrying value of leased assets | $ | 503,796 | $ | 529,099 | ||||||
Commitment_and_contingencies_T
Commitment and contingencies (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
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, 2014 is as follows: | |||||||
Year ending June 30, | Minimum lease payment | ||||||
(in thousands) | |||||||
2015 | $ | 871 | |||||
2016 | 566 | ||||||
2017 | 566 | ||||||
2018 | 566 | ||||||
2019 | 566 | ||||||
Years after | 19,644 | ||||||
Total minimum payments required | $ | 22,779 | |||||
Schedule of Guarantor Obligations [Table Text Block] | ' | ||||||
As of September 30, 2014, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $196.7 million. | |||||||
Nature of guarantee | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Line of credit | $ | 127,644 | Various from December 2014 to September 2015 | ||||
Three-party financing agreements | 14,463 | Various from April to June 2015 | |||||
Confirming storage | 41,600 | Various from October 2014 to April 2015 | |||||
Financing by the rights of goods delivery in future | 13,000 | Oct-14 | |||||
Total | $ | 196,707 | |||||
Schedule Of Parties Being Guaranteed [Table Text Block] | ' | ||||||
Name of parties being guaranteed | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Long Steel Group | $ | 79,706 | Various from December 2014 to September 2015 | ||||
Hancheng Haiyan Coking Co., Ltd | 25,350 | Various from October 2014 to April 2015 | |||||
Chengdu Zhongyi Steel Co., Ltd | 8,125 | Mar-15 | |||||
Shaanxi Fuping Steel Co., Ltd | 3,088 | Jun-15 | |||||
Xi’an Laisheng Logistics Co., Ltd | 3,250 | May-15 | |||||
Xi'an Kaiyuan Steel Sales Co., Ltd | 6,500 | Jan-15 | |||||
Shaanxi Longan Industry Co., Ltd. | 8,125 | Dec-14 | |||||
Hancheng Sanli Furnace Burden Co., Ltd. | 16,250 | Mar-15 | |||||
Tianjin Dazhan Industry Co., Ltd | 20,313 | Various from January to March 2015 | |||||
Tianjin Hengying Trading Co., Ltd | 26,000 | Various from October 2014 to January 2015 | |||||
Total | $ | 196,707 | |||||
Segments_Tables
Segments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
The following represents the results of division operations for the three months ended September 30, 2014 and 2013: | ||||||||
(In thousands) | ||||||||
Sales: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 559,317 | $ | 606,444 | ||||
Maoming Hengda | 1,122 | 252 | ||||||
Baotou Steel Pipe Joint Venture | 2,383 | 2,921 | ||||||
General Steel (China) & Tianwu Joint Venture | 20,335 | 4,236 | ||||||
Total sales | 583,157 | 613,853 | ||||||
Interdivision sales | -20,335 | -3,758 | ||||||
Consolidated sales | $ | 562,822 | $ | 610,095 | ||||
Gross profit (loss): | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 9,010 | $ | 8,122 | ||||
Maoming Hengda | -80 | -57 | ||||||
Baotou Steel | 178 | 160 | ||||||
General Steel (China) & Tianwu Joint Venture | 502 | 6 | ||||||
Total gross profit (loss) | 9,610 | 8,231 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 9,610 | $ | 8,231 | ||||
Income (loss) from operations: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 9,746 | $ | 30,306 | ||||
Maoming Hengda | -248 | -719 | ||||||
Baotou Steel | -30 | 20 | ||||||
General Steel (China) & Tianwu Joint Venture | 841 | -695 | ||||||
Total income (loss) from operations | 10,309 | 28,912 | ||||||
Interdivision income (loss) from operations | - | - | ||||||
Reconciling item (1) | -2,406 | -1,177 | ||||||
Consolidated income (loss) from operations | $ | 7,903 | $ | 27,735 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -3,378 | $ | 8,284 | ||||
Maoming Hengda | -318 | -694 | ||||||
Baotou Steel | -24 | 16 | ||||||
General Steel (China) & Tianwu Joint Venture | 2,595 | -2,689 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -1,125 | 4,917 | ||||||
Interdivision net income | - | - | ||||||
Reconciling item (1) | -2,365 | -1,116 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -3,490 | $ | 3,801 | ||||
Depreciation, amortization and depletion: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 22,960 | $ | 21,014 | ||||
Maoming Hengda | 437 | 307 | ||||||
Baotou Steel | 64 | 62 | ||||||
General Steel (China) & Tianwu Joint Venture | 447 | 505 | ||||||
Consolidated depreciation, amortization and depletion | $ | 23,908 | $ | 21,888 | ||||
Finance/interest expenses: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 17,831 | $ | 20,591 | ||||
Maoming Hengda | 1 | 1 | ||||||
Baotou Steel | - | - | ||||||
General Steel (China) & Tianwu Joint Venture | 1,588 | 2,249 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 2 | 1 | ||||||
Consolidated interest expenses | $ | 19,422 | $ | 22,842 | ||||
Capital expenditures: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 5,096 | $ | 16,455 | ||||
Maoming Hengda | 16 | - | ||||||
Baotou Steel | 1 | - | ||||||
General Steel (China) & Tianwu Joint Venture | - | - | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 5,113 | $ | 16,455 | ||||
The following represents the results of division operations for the nine months ended September 30, 2014 and 2013: | ||||||||
(In thousands) | ||||||||
Sales: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 1,740,645 | $ | 1,903,933 | ||||
Maoming Hengda | 1,373 | 3,124 | ||||||
Baotou Steel Pipe Joint Venture | 3,028 | 3,902 | ||||||
General Steel (China) & Tianwu Joint Venture | 20,388 | 58,416 | ||||||
Total sales | 1,765,434 | 1,969,375 | ||||||
Interdivision sales | -20,388 | -54,338 | ||||||
Consolidated sales | $ | 1,745,046 | $ | 1,915,037 | ||||
Gross profit (loss): | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 15,020 | $ | -23,704 | ||||
Maoming Hengda | -35 | 188 | ||||||
Baotou Steel | 158 | 249 | ||||||
General Steel (China) & Tianwu Joint Venture | - | 29 | ||||||
Total gross profit (loss) | 15,143 | -23,238 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross profit (loss) | $ | 15,143 | $ | -23,238 | ||||
Loss from operations: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -21,420 | $ | 20,558 | ||||
Maoming Hengda | -824 | -1,741 | ||||||
Baotou Steel | -207 | -285 | ||||||
General Steel (China) & Tianwu Joint Venture | -2,445 | -2,293 | ||||||
Total loss from operations | -24,896 | 16,239 | ||||||
Interdivision loss from operations | - | - | ||||||
Reconciling item (1) | -4,539 | -3,504 | ||||||
Consolidated loss from operations | $ | -29,435 | $ | 12,735 | ||||
Net loss attributable to General Steel Holdings, Inc.: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | -49,489 | $ | -18,335 | ||||
Maoming Hengda | -978 | -1,681 | ||||||
Baotou Steel | -165 | -227 | ||||||
General Steel (China) & Tianwu Joint Venture | -3,118 | -9,373 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -53,750 | -29,616 | ||||||
Interdivision net income (loss) | - | - | ||||||
Reconciling item (1) | -4,323 | -3,298 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -58,073 | $ | -32,914 | ||||
Depreciation, amortization and depletion: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 69,268 | $ | 62,295 | ||||
Maoming Hengda | 899 | 933 | ||||||
Baotou Steel | 185 | 185 | ||||||
General Steel (China) & Tianwu Joint Venture | 1,344 | 1,542 | ||||||
Consolidated depreciation, amortization and depletion | $ | 71,696 | $ | 64,955 | ||||
Finance/interest expenses: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 69,952 | $ | 60,984 | ||||
Maoming Hengda | 1 | 1 | ||||||
Baotou Steel | - | - | ||||||
General Steel (China) & Tianwu Joint Venture | 4,685 | 7,927 | ||||||
Interdivision interest expenses | - | - | ||||||
Reconciling item (1) | 98 | 3 | ||||||
Consolidated interest expenses | $ | 74,736 | $ | 68,915 | ||||
Capital expenditures: | 2014 | 2013 | ||||||
Longmen Joint Venture | $ | 117,695 | $ | 60,461 | ||||
Maoming Hengda | 48 | 2 | ||||||
Baotou Steel | 1 | 8 | ||||||
General Steel (China) & Tianwu Joint Venture | 82 | 3 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 117,826 | $ | 60,474 | ||||
Total Assets as of: | September 30, 2014 | December 31, 2013 | ||||||
Longmen Joint Venture | $ | 2,583,371 | $ | 2,573,212 | ||||
Maoming Hengda | 27,154 | 29,211 | ||||||
Baotou Steel Pipe Joint Venture | 5,601 | 4,448 | ||||||
General Steel (China) & Tianwu Joint Venture | 223,517 | 121,883 | ||||||
Interdivision assets | -73,311 | -34,213 | ||||||
Reconciling item (2) | 1,945 | 5,817 | ||||||
Total Assets | $ | 2,768,277 | $ | 2,700,358 | ||||
-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, 2014 and 2013. | |||||||
-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, 2014 and December 31, 2013. | |||||||
Organization_and_Operations_De
Organization and Operations (Details Textual) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 29, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Apr. 29, 2011 | Apr. 29, 2011 |
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] | Shaanxi Iron and Steel Group [Member] | ||
USD ($) | CNY | ||||||||
Equity Method Investment, Ownership Percentage | ' | 100.00% | 60.00% | 60.00% | ' | ' | ' | ' | ' |
Iron and Steel Making Facilities | ' | ' | ' | ' | ' | ' | ' | $605.80 | 3.7 |
Unified Management Agreement, Percentage Of Pretax Profit | ' | ' | 60.00% | ' | 40.00% | 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 | |
Sep. 30, 2014 | Apr. 29, 2011 | |
General Steel Investment Co., Ltd. [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 100.00% | ' |
Entity Incorporation, State Country Name | 'British Virgin Islands | ' |
General Steel (China) Co., Ltd. ("General Steel (China)") [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 100.00% | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Baotou Steel - General Steel Special Steel Pipe Joint Venture Co., Ltd. [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 80.00% | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Yangpu Shengtong Investment Co., Ltd. ("Yangpu Shengtong") [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 99.10% | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Tianjin Qiu Steel Investment Co., Ltd. ("Qiu Steel") [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 98.70% | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Longmen Joint Venture [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% |
Entity Incorporation, State Country Name | 'PRC | ' |
Maoming Hengda Steel Company, Ltd. ("Maoming Hengda") [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 99.00% | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Summary_of_significant_account4
Summary of significant accounting policies (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Current assets | $1,196,254 | $1,380,724 |
Plant and equipment, net | 1,516,009 | 1,271,907 |
TOTAL ASSETS | 2,768,277 | 2,700,358 |
Total liabilities | 3,352,293 | 3,194,355 |
Variable Interest Entities and Subsidiary [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Current assets | 1,037,052 | 1,282,054 |
Plant and equipment, net | 1,508,595 | 1,262,144 |
Other noncurrent assets | 37,724 | 29,014 |
TOTAL ASSETS | 2,583,371 | 2,573,212 |
Total liabilities | 3,145,353 | 3,040,879 |
Net liabilities | ($561,982) | ($467,667) |
Summary_of_significant_account5
Summary of significant accounting policies (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current liabilities: | ' | ' |
Accounts payable | $589,283 | $434,979 |
Accounts payable - related parties | 265,744 | 235,692 |
Short term loans - bank | 784,323 | 1,017,830 |
Short term loans - others | 60,340 | 62,067 |
Short term loans - related parties | 223,460 | 126,693 |
Current maturities of long-term loans - related party | 67,249 | 53,013 |
Other payables and accrued liabilities | 50,568 | 45,653 |
Other payables - related parties | 101,475 | 94,079 |
Customer deposits | 186,807 | 87,860 |
Customer deposits - related parties | 113,674 | 64,881 |
Deposit due to sales representatives | 29,917 | 24,343 |
Taxes payable | 3,930 | 4,628 |
Deferred lease income | 2,171 | 2,187 |
Capital lease obligations, current | 6,825 | 4,321 |
TOTAL CURRENT LIABILITIES | 2,736,363 | 2,562,140 |
Non-current liabilities: | ' | ' |
Long term loans - related parties | 4,875 | 19,644 |
Deferred lease income - noncurrent | 73,077 | 75,257 |
Capital lease obligations, noncurrent | 388,615 | 375,019 |
Profit sharing liability at fair value | 149,363 | 162,295 |
TOTAL NON-CURRENT LIABILITIES | 615,930 | 632,215 |
TOTAL LIABILITIES | 3,352,293 | 3,194,355 |
Variable Interest Entities and Subsidiary [Member] | ' | ' |
Current liabilities: | ' | ' |
Short term notes payable | 776,198 | 988,364 |
Accounts payable | 579,077 | 393,816 |
Accounts payable - related parties | 257,548 | 235,116 |
Short term loans - bank | 204,576 | 267,688 |
Short term loans - others | 54,163 | 55,844 |
Short term loans - related parties | 222,792 | 125,236 |
Current maturities of long-term loans - related party | 56,199 | 56,614 |
Other payables and accrued liabilities | 41,277 | 37,028 |
Other payables - related parties | 96,094 | 88,914 |
Customer deposits | 108,340 | 87,661 |
Customer deposits - related parties | 17,876 | 18,359 |
Deposit due to sales representatives | 29,917 | 24,343 |
Deposit due to sales representatives - related parties | 2,308 | 1,997 |
Taxes payable | 2,511 | 3,357 |
Deferred lease income | 2,171 | 2,187 |
Capital lease obligations, current | 6,825 | 4,321 |
Intercompany payable to be eliminated | 60,501 | 21,420 |
TOTAL CURRENT LIABILITIES | 2,518,373 | 2,412,265 |
Non-current liabilities: | ' | ' |
Long term loans - related parties | 15,925 | 16,043 |
Deferred lease income - noncurrent | 73,077 | 75,257 |
Capital lease obligations, noncurrent | 388,615 | 375,019 |
Profit sharing liability at fair value | 149,363 | 162,295 |
TOTAL NON-CURRENT LIABILITIES | 626,980 | 628,614 |
TOTAL LIABILITIES | $3,145,353 | $3,040,879 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Sales | $456,142 | $514,549 | $1,476,784 | $1,534,330 |
Gross profit (loss) | 9,610 | 8,231 | 15,143 | -23,238 |
Income (loss) from operations | 7,903 | 27,734 | -29,435 | 12,735 |
Net loss attributable to controlling interest | -3,490 | 3,801 | -58,073 | -32,914 |
Variable Interest Entities and Subsidiary [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Sales | 559,317 | 606,444 | 1,740,645 | 1,903,933 |
Gross profit (loss) | 9,010 | 8,122 | 15,020 | -23,704 |
Income (loss) from operations | 9,746 | 30,306 | -21,420 | 20,558 |
Net loss attributable to controlling interest | ($3,378) | $8,284 | ($49,489) | ($18,335) |
Summary_of_significant_account7
Summary of significant accounting policies (Details 4) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ' |
Amount of Line of Credit | $141.40 |
China Minsheng Bank [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Amount of Line of Credit | 97.5 |
Repayment Date | 28-Nov-15 |
China Everbright Bank [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Amount of Line of Credit | 19.5 |
Repayment Date | 21-Jan-16 |
Huaxia Bank [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Amount of Line of Credit | $24.40 |
Repayment Date | 30-Jan-16 |
Summary_of_significant_account8
Summary of significant accounting policies (Details 5) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Jan. 22, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Financing Amount | $141.40 | ' |
Vendor Financing [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Financing Amount | 893.8 | ' |
Vendor Financing [Member] | Company A [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Financing Amount | 243.8 | ' |
Financing period covered | 'July 30, 2014 – July 30, 2019 | ' |
Vendor Financing [Member] | Company B [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Financing Amount | 162.5 | 162.5 |
Financing period covered | 'January 22, 2014 – January 22, 2017 | ' |
Vendor Financing [Member] | Company C [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Financing Amount | $487.50 | ' |
Financing period covered | 'October 1, 2013 – March 31, 2016 | ' |
Summary_of_significant_account9
Summary of significant accounting policies (Details 6) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | $662.60 |
Company D [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 81.3 |
Financing period covered | 'April 22, 2014 – April 22, 2017 |
Company E [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 86 |
Financing period covered | 'April 23, 2014 – April 23, 2017 |
Company F [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 81.3 |
Financing period covered | 'April 22, 2014 – April 22, 2017 |
Company G [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 56.9 |
Financing period covered | 'March 5, 2014 – March 5, 2016 |
Company H [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 56.9 |
Financing period covered | 'March 5, 2014 – March 5, 2016 |
Company I [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | 81.3 |
Financing period covered | 'October 30, 2014 – October 30, 2017 |
Shaanxi Steel [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Financing Amount | $218.90 |
Financing period covered | 'Extended until funds available for repayment |
Recovered_Sheet1
Summary of significant accounting policies (Details 7) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | |
Scenario, Forecast [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Current liabilities over current assets (excluding deferred lease income) as of September 30, 2014 (unaudited) | ' | ' | ($1,537,900,000) |
Projected cash financing and outflows: | ' | ' | ' |
Cash provided by lines of credit from banks | ' | ' | 141,400,000 |
Cash provided by vendor financing | ' | ' | 893,800,000 |
Cash provided by other financing | ' | ' | 662,600,000 |
Cash provided by sales representatives | ' | ' | 32,200,000 |
Cash projected to be used in operations in the twelve months ending September 30, 2015 | ' | ' | -33,500,000 |
Cash projected to be used for financing cost in the twelve months ending September 30, 2015 | -104,609,000 | -146,606,000 | -58,000,000 |
Net projected change in cash for the twelve months ending September 30, 2015 | ' | ' | $100,600,000 |
Recovered_Sheet2
Summary of significant accounting policies (Details 8) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Profit sharing liability | $149,363 | $162,295 | ' |
Total | 149,363 | 162,295 | 328,828 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Profit sharing liability | 0 | 0 | ' |
Total | 0 | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Profit sharing liability | 0 | 0 | ' |
Total | 0 | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Profit sharing liability | 149,363 | 162,295 | ' |
Total | $149,363 | $162,295 | ' |
Recovered_Sheet3
Summary of significant accounting policies (Details 9) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Beginning balance | $162,295 | $328,828 |
Change in fair value of profit sharing liability: | ' | ' |
Change in estimate of future operating profits | -17,146 | -183,528 |
Change in discount rate | 0 | 0 |
Interest expense - present value discount amortization | 8,795 | 16,872 |
Difference between the previously estimated operating results for the current period and actual results | -3,407 | -7,913 |
Change in derivative liabilities - warrants | 0 | 1 |
Exchange rate effect | -1,174 | 8,035 |
Ending balance | $149,363 | $162,295 |
Recovered_Sheet4
Summary of significant accounting policies (Details 10) | 9 Months Ended |
Sep. 30, 2014 | |
Buildings and improvements [Member] | Maximum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '40 years |
Buildings and improvements [Member] | Minimum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Machinery [Member] | Maximum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '30 years |
Machinery [Member] | Minimum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Machinery and equipment under capital lease [Member] | Maximum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '20 years |
Machinery and equipment under capital lease [Member] | Minimum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
Other equipment [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Transportation equipment [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
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, 2014 |
General Steel (China) [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Original Cost | $3,856 |
Expires on | '2050 & 2053 |
Longmen Joint Venture [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Original Cost | 24,097 |
Expires on | '2048 & 2052 |
Maoming Hengda [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Original Cost | $2,697 |
Expires on | '2054 |
Recovered_Sheet6
Summary of significant accounting policies (Details 12) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Net investment | $16,742 | $16,943 |
Xi'an Delong Powder Engineering Materials Co., Ltd.[Memebr] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Year acquired | '2007 | ' |
Net investment | 1,130 | 1,215 |
Owned Percentage | 24.10% | 24.10% |
Tianwu General Steel Material Trading Co., Ltd.[Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Year acquired | '2010 | ' |
Net investment | $15,612 | $15,728 |
Owned Percentage | 32.00% | 32.00% |
Recovered_Sheet7
Summary of significant accounting policies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 19, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 22, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Nov. 19, 2013 | Nov. 19, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Apr. 29, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 19, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | 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 Suppliers [Member] | Five Suppliers [Member] | Five Suppliers [Member] | Vendor Financing [Member] | Company E [Member] | Company A [Member] | Company A [Member] | Company B [Member] | Company B [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] | Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | Company I [Member] | Tianjin Dazhan Industry Co Ltd [Member] | Tianjin Dazhan Industry Co Ltd [Member] | Shaanxi Steel [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Yuxin Trading Co Ltd [Member] | Hualong [Member] | Hualong [Member] | Hualong [Member] | Huatianyulong [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] | Tianwu General Steel Material Trading Co Ltd [Member] | Tianwu General Steel Material Trading Co Ltd [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | ||
USD ($) | USD ($) | CNY | Sales [Member] | Sales [Member] | USD ($) | USD ($) | USD ($) | Vendor Financing [Member] | USD ($) | Vendor Financing [Member] | Vendor Financing [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Vendor Financing [Member] | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | Shareholder One [Member] | Shareholder Two [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | CNY | |||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | 60.00% | 100.00% | 36.00% | 34.67% | 29.33% | 50.00% | 100.00% | 100.00% | 99.00% | 99.00% | 99.10% | 98.70% | 32.00% | 32.00% | ' | ' | ' | ' |
Working Capital | $1,500,000,000 | ' | ' | ' | $1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt To Equity Ratio | -5.7 | -5.7 | ' | ' | -5.7 | -5.7 | ' | ' | -6.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,400,000 | 72,200,000 | ' | 78,600,000 | ' | ' | 16,300,000 | 11,600,000 | 0 | 0 | ' | ' | ' | ' | 0 | ' | ' | 81,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vendor Financing, Variable Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Amount Utilized | 80,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents Including Restricted Cash | 405,400,000 | ' | ' | ' | 405,400,000 | ' | ' | ' | 431,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Purchases Major Supplier Percentage | ' | ' | 15.30% | 15.30% | ' | ' | 29.30% | 29.30% | ' | ' | ' | ' | ' | ' | ' | ' | 25.50% | 23.40% | ' | ' | 18.80% | 29.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Wide Accounts Payable Major Supplier Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.70% | 25.70% | 29.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net Of Tax, Portion Attributable To Parent | ' | ' | ' | ' | -200,000 | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Exchange Translation Rate Balance Sheet Items | 6.15 | 6.15 | ' | ' | 6.15 | 6.15 | ' | ' | 6.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Exchange Average Translation Rate | ' | 6.16 | ' | 6.16 | ' | 6.15 | ' | 6.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 account for 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 account for 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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | 7.30% | 7.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 487,500,000 | 321,800,000 | 1,980,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Notes Receivable Interest Income | 10,200,000 | ' | 9,600,000 | ' | 37,100,000 | ' | 26,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 16.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite lived Intangible Asset Acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,100,000 | 148,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | 23,700,000 | 2,700,000 | 16,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Profit Sharing Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain Loss On Change In Fair Value Of Profit Sharing Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Initial Measurement And Recognition Of Profit Sharing Liability | ' | ' | ' | ' | 149,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination Equity Interest Description | ' | ' | ' | ' | 'Prior to November 19, 2013, the Company held a 60.0% equity interest in Tianwu General Steel Material Trading Co., Ltd. (Tianwu). 32% interest was held by General Steel (China) and 28% interest was held by Yangpu Shengtong. | 'Prior to November 19, 2013, the Company held a 60.0% equity interest in Tianwu General Steel Material Trading Co., Ltd. (Tianwu). 32% interest was held by General Steel (China) and 28% interest was held by Yangpu Shengtong. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Sale Of Equity Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,600,000 | 84,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Equity Interest Retained | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | 32.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | '50 years | '50 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '50 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '50 years | '50 years | '50 years | '50 years | ' | ' | ' | ' | ' | ' | ' | ' |
Unified Management Agreement, Cost Of Asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 14,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 14,600,000 | 14,600,000 |
Long-term Line of Credit | 141,400,000 | ' | ' | ' | 141,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 893,800,000 | ' | ' | 243,800,000 | ' | 162,500,000 | 162,500,000 | ' | ' | ' | ' | 487,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Surrender Value of Life Insurance | 100,000 | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposal Group, Deferred Gain on Disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | $30,000 | ' | $50,000 | ' | $100,000 | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit Sharing Liability Fair Value Criteria | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'If we were to reduce the projected bank borrowing rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of September 30, 2014 would have been $170.5 million and we would decrease the gain from the change in the fair value of the profit sharing liability by $21.2 million | 'If we were to 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 September 30, 2014 would have been $142.6 million and we would increase the gain from the change in the fair value of the profit sharing liability by $6.8 million | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_receivable_including_rel2
Loans receivable (including related parties) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Receivable Related Parties [Line Items] | ' | ' |
Loans receivable - related parties | $0 | $4,540 |
Loans Receivable, Net | 14,625 | 0 |
Interest-bearing Deposits [Member] | ' | ' |
Loans Receivable Related Parties [Line Items] | ' | ' |
Loans Receivable, Net | 14,625 | 0 |
Teamlink Investment Co., Ltd [Member] | ' | ' |
Loans Receivable Related Parties [Line Items] | ' | ' |
Loans receivable - related parties | $0 | $4,540 |
Loans_receivable_including_rel3
Loans receivable (including related parties) (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Loans Receivable Related Parties [Line Items] | ' | ' | ' | ' |
Interest Income Related Party | $0.10 | $0.10 | $0.20 | $0.20 |
Loans Receivable Interest Rate Stated Percentage | 4.75% | ' | 4.75% | ' |
Teamlink Investment Co Ltd [Member] | ' | ' | ' | ' |
Loans Receivable Related Parties [Line Items] | ' | ' | ' | ' |
Gross carrying amount, sep 30, 2018 | ' | ' | 'due in June, July and December 2014 | ' |
Accounts_receivable_including_2
Accounts receivable (including related parties), net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable | $9,209 | $5,131 | ' |
Less: allowance for doubtful accounts | -728 | -1,053 | -1,367 |
Accounts receivable - related parties | 2,153 | 2,942 | ' |
Net accounts receivable | $10,634 | $7,020 | ' |
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, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Beginning balance | $1,053 | $1,367 |
Charge to expense | 0 | 96 |
Less: recovery | -317 | -449 |
Exchange rate effect | -8 | 39 |
Ending balance | $728 | $1,053 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | ' | ' | ' |
Supplies | $22,459 | $21,040 | ' |
Raw materials | 157,872 | 164,301 | ' |
Finished goods | 86,762 | 42,977 | ' |
Less: allowance for inventory valuation | -17,076 | -15,397 | -9,585 |
Total inventories | $250,017 | $212,921 | ' |
Inventories_Details_1
Inventories (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Beginning balance | $15,397 | $9,585 |
Addition | 17,099 | 15,194 |
Less: write-off | -15,304 | -9,757 |
Exchange rate effect | -116 | 375 |
Ending balance | $17,076 | $15,397 |
Advances_on_inventory_purchase1
Advances on inventory purchases (Details Textual) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Advances on inventory purchases [Line Items] | ' | ' |
Advances On Inventory Purchases Including Related Parties | $171.30 | $127.90 |
Plant_and_equipment_net_Detail
Plant and equipment, net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Buildings and improvements | $311,562 | $274,402 |
Machinery | 657,680 | 667,093 |
Machinery under capital lease | 625,196 | 623,895 |
Transportation and other equipment | 23,177 | 22,991 |
Construction in progress | 294,062 | 11,412 |
Subtotal | 1,911,677 | 1,599,793 |
Less: accumulated depreciation | -395,668 | -327,886 |
Total | $1,516,009 | $1,271,907 |
Plant_and_equipment_net_Detail1
Plant and equipment, net (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Equipment updates [Member] | Sintering Machine Construction [Member] | 5 blast furnace construction [Member] | Reconstruction Of Miscellaneous Factory Buildings [Member] | Project materials [Member] | Others [Member] | ||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Construction in progress | $294,062 | $11,412 | $1,992 | $84,831 | $185,354 | $5,649 | $2,139 | $14,097 |
Construction Completion Date | ' | ' | 31-Dec-14 | 30-Nov-14 | 31-Dec-14 | 30-Sep-15 | ' | ' |
Estimated additional cost to complete | $110,695 | ' | $12,869 | $59,875 | $32,709 | $5,242 | $0 | $0 |
Plant_and_equipment_net_Detail2
Plant and equipment, net (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Machinery | $625,196 | $623,895 |
Less: accumulated depreciation | -99,777 | -77,086 |
Carrying value of leased assets | $525,419 | $546,809 |
Plant_and_equipment_net_Detail3
Plant and equipment, net (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation | $23.70 | $21.60 | $71 | $64.10 |
Lease Expiration Date | ' | ' | 30-Apr-31 | ' |
Assets Held under Capital Leases [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation | $7.70 | $7.10 | $23.30 | $21.20 |
Intangible_assets_net_Details
Intangible assets, net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $34,140 | $34,086 |
Less: Accumulated amortization | -11,019 | -10,379 |
Intangible assets, net | 23,121 | 23,707 |
Land use rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 30,650 | 30,884 |
Less: Accumulated amortization | -8,931 | -8,498 |
Mining right [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 2,441 | 2,459 |
Less: Accumulated amortization | -1,396 | -1,320 |
Software [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,049 | 743 |
Less: Accumulated amortization | ($692) | ($561) |
Intangible_assets_net_Details_
Intangible assets, net (Details 1) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated amortization and depletion expenses, sep 30, 2015 | $966 |
Estimated amortization and depletion expenses, sep 30, 2016 | 966 |
Estimated amortization and depletion expenses, sep 30, 2017 | 966 |
Estimated amortization and depletion expenses, sep 30, 2018 | 966 |
Estimated amortization and depletion expenses, sep 30, 2019 | 966 |
Thereafter | 18,291 |
Total | 23,121 |
Gross carrying amount, sep 30, 2015 | 22,155 |
Gross carrying amount, sep 30, 2016 | 21,189 |
Gross carrying amount, sep 30, 2017 | 20,223 |
Gross carrying amount,sep 30, 2018 | 19,257 |
Gross carrying amount, sep 30, 2019 | 18,291 |
Thereafter | $0 |
Intangible_assets_net_Details_1
Intangible assets, net (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '32 years 10 months 24 days | ' | ' |
Amortization of Intangible Assets | $100,000 | $200,000 | $600,000 | $700,000 | ' |
Depletion | 40,000 | 20,000 | 100,000 | 100,000 | ' |
Finite-Lived Intangible Assets, Gross | $34,140,000 | ' | $34,140,000 | ' | $34,086,000 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Short term notes payable | $784,323 | $1,017,830 |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term notes payable | 776,198 | 988,364 |
General Steel China Notes Payable To Various Banks In China [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term notes payable | $8,125 | $29,466 |
Debt_Details_1
Debt (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Short term loans - bank | $248,289 | $301,917 |
General Steel China Loans From Various Banks In China [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - bank | 43,713 | 34,229 |
Longmen Joint Venture Loans from various banks in China [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - bank | $204,576 | $267,688 |
Debt_Details_2
Debt (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Short term loans - others | $60,340 | $62,067 |
Longmen Joint Venture Loans from various unrelated companies and individuals [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - others | 37,899 | 22,720 |
Longmen Joint Venture Loans from financing sales [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - others | 16,264 | 33,124 |
Maoming Hengda Loans from one unrelated parties and one related party [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - others | $6,177 | $6,223 |
Debt_Details_3
Debt (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Short term loans - related parties | $223,460 | $126,693 |
General Steel China Loans From Yangpu Capital Automobile [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - related parties | 668 | 1,458 |
Longmen Joint Venture Loan from Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - related parties | 5,467 | 28,216 |
Longmen Joint Venture Loan From Shaanxi Steel Group [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - related parties | 95,875 | 49,110 |
Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short term loans - related parties | $121,450 | $47,909 |
Debt_Details_4
Debt (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Current maturities of long-term loans - related party | ($67,249) | ($53,013) |
Long-term loans - related party | 4,875 | 19,644 |
Longmen Joint Venture Loans from Shaanxi Steel Group [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term loans - related party | $72,124 | $72,657 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Percentage Of Transaction Fee | ' | ' | 0.05% | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | $371 | ' | $371 | ' | $399.40 |
Restricted Notes Receivable Guarantee For Notes Payable | 26 | ' | 26 | ' | 231.7 |
Financing Sales | 259.7 | 166.2 | 719.3 | 519.5 | ' |
Financial Services Costs | 1.4 | 1.1 | 3.1 | 4.2 | ' |
Interest Costs Capitalized | 1.3 | 1.3 | 2.1 | 2.1 | ' |
Interest Expense, Debt | 4 | 8.2 | 21.6 | 26.7 | ' |
General Steel China Notes Payable To Various Banks In China [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 8.1 | ' | 8.1 | ' | 16.4 |
Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 5.60% | ' | 5.60% | ' | 5.20% |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 362.9 | ' | 362.9 | ' | 383 |
Restricted Notes Receivable Guarantee For Notes Payable | 26 | ' | 26 | ' | 231.7 |
Debt Instrument Maturity Dates | ' | ' | 'various dates from October 2014 to September 2015 | ' | ' |
Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 8.00% | ' | 8.00% | ' | ' |
General Steel China Loans From Yangpu Capital Automobile [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
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 [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 7.00% | ' | 7.00% | ' | ' |
Longmen Joint Venture Loans from various banks in China [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 12.2 | ' | 12.2 | ' | 0 |
Restricted Notes Receivable Guarantee For Notes Payable | $82.50 | ' | $82.50 | ' | $163.90 |
Debt Instrument Maturity Dates | ' | ' | 'various dates from December 2014 to July 2015 | ' | ' |
Debt, Weighted Average Interest Rate | 6.90% | ' | 6.90% | ' | 6.30% |
General Steel China Loans From Various Banks In China [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 7.20% | ' | 7.20% | ' | 7.20% |
Maximum [Member] | Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 9.60% | ' | 9.60% | ' | ' |
Maximum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 9.60% | ' | 9.60% | ' | ' |
Minimum [Member] | Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 4.60% | ' | 4.60% | ' | ' |
Minimum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | 4.60% | ' | 4.60% | ' | ' |
Customer_deposits_Details_Text
Customer deposits (Details Textual) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Customer Deposits [Line Items] | ' | ' |
Customer Deposits Including Related Parties | $300,500,000 | $152,700,000 |
Customer deposits - related parties | $113,674,000 | $64,881,000 |
Deposits_due_to_sales_represen1
Deposits due to sales representatives (Details Textual) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deposits Due To Sales Representative Including Related Parties | $32.20 | $26.30 |
Warrants_Details_Textual
Warrants (Details Textual) (USD $) | Sep. 30, 2014 | 13-May-13 | Dec. 31, 2007 |
In Millions, except Share data, unless otherwise specified | |||
Convertible Notes And Warrant [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | ' | $40 | $40 |
Class of Warrant or Right, Outstanding | 3,900,871 | ' | ' |
Supplemental_disclosure_of_cas1
Supplemental disclosure of cash flow information (Details Textual) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Disclosure Of Cash Flow Information [Line Items] | ' | ' |
Interest Paid, Net | $12.60 | $11.50 |
Income Taxes Paid | 0.1 | 0.3 |
Dividend Receivables Value | 0.2 | 0.2 |
Disposal Of Equipment Value | 0.01 | 1 |
Inventory Productions, Equipment Conversion | 0.05 | 1 |
Inventory Utilized In Plant and Equipment Construction | 2.4 | 37.3 |
Construction in Progress Expenditures Incurred but Not yet Paid | 208.3 | ' |
Notes Receivable Converted To Cash | 57.4 | ' |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Flight Equipment, Net | 5.9 | ' |
Repayment Of Accounts Payable Related Party | ' | 64.2 |
Repayment For Advances On Inventory Purchases | ' | 119.9 |
Reclassification Of Inventory Purchases Refundable Advances Related Parties To Other Receivables Related Parties | ' | $3.80 |
Deferred_lease_income_Details_
Deferred lease income (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Mar. 30, 2011 | Mar. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 30, 2010 | Dec. 30, 2010 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | Longmen Joint Venture [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||||
Deferred Lease Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,500,000 | 89,300,000 | 14,600,000 | 89,500,000 |
Deferred Revenue Leases Lease Income Realized | 542,000 | 542,000 | 1,630,000 | 1,613,000 | 2,158,000 | ' | ' | ' | 7,100,000 | 43,900,000 | ' | ' | ' | ' |
Deferred Revenue, Leases, Net | 75,248,000 | ' | 75,248,000 | ' | 77,444,000 | 77,199,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue, Leases, Current | $2,171,000 | ' | $2,171,000 | ' | $2,187,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_lease_obligations_Deta
Capital lease obligations (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
2015 | $8,320 |
2016 | 5,804 |
2017 | 188,812 |
2018 | 32,510 |
2019 | 29,957 |
Thereafter | 331,209 |
Total minimum lease payments | 596,612 |
Less: amounts representing interest | -201,172 |
Ending balance | $395,440 |
Capital_lease_obligations_Deta1
Capital lease obligations (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | USD ($) | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | |
USD ($) | CNY | CNY | ||||||
Schedule Of Capital Leased Obligation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Agreement Term | ' | ' | ' | ' | ' | ' | ' | '20 years |
Classification Of Lease, Percentage Base | ' | ' | ' | ' | ' | ' | ' | 75.00% |
Unified Management Agreement, Percentage Of Pretax Profit | ' | ' | ' | ' | 40.00% | 40.00% | 40.00% | 40.00% |
Unified Management Agreement, Cost Of Asset | ' | ' | ' | ' | $2.30 | 14.6 | 14.6 | ' |
Interest Expense On Minimum Lease Payments | $5.20 | $5.10 | $16 | $15.30 | ' | ' | ' | ' |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Taxes [Line Items] | ' | ' | ' | ' |
Current | $93 | $25 | $205 | $201 |
Deferred | 0 | 0 | 0 | 0 |
Provision for income taxes | $93 | $25 | $205 | $201 |
Taxes_Details_1
Taxes (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Taxes [Line Items] | ' | ' |
Beginning balance | $97,569 | $72,891 |
Current period addition | 4,567 | 23,293 |
Current period reversal | -214 | -1,206 |
Exchange difference | -721 | 2,591 |
Ending balance | $101,201 | $97,569 |
Taxes_Details_2
Taxes (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Taxes [Line Items] | ' | ' |
VAT taxes payable | $1,731 | $2,211 |
Income taxes payable | 256 | 173 |
Other taxes | 1,943 | 2,244 |
Totals | $3,930 | $4,628 |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Preferential Tax Rate | ' | ' | 15.00% | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $531,800,000 | ' | $531,800,000 | ' | ' | ' |
Value Added Tax Receivable | 4,800,000 | ' | 4,800,000 | ' | 3,500,000 | ' |
Value Added Tax On Sales | 217,600,000 | 160,500,000 | 549,100,000 | 513,700,000 | ' | ' |
Value Added Tax On Purchases | 210,800,000 | 156,200,000 | 537,200,000 | 494,400,000 | ' | ' |
Deferred Tax Assets, Valuation Allowance | 101,201,000 | ' | 101,201,000 | ' | 97,569,000 | 72,891,000 |
Tax Initiative Extension Period | ' | ' | '10 years | ' | ' | ' |
Deferred Tax Asset Valuation Allowance Percentage | ' | ' | 100.00% | ' | ' | ' |
Deferred Tax Assets Valuation Period | ' | ' | '5 years | ' | ' | ' |
UNITED STATES | ' | ' | ' | ' | ' | ' |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | ' | ' | 300,000 | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | $1,000,000 | ' | $1,000,000 | ' | ' | ' |
Operating Loss Carryforwards, Date Expiration | ' | ' | 'The net operating loss carry forwards for United States income taxes amounted to $3.0 million, which may be available to reduce future years’ taxable income. | ' | ' | ' |
Deferred Tax Asset Valuation Allowance Percentage | ' | ' | 100.00% | ' | ' | ' |
Longmen Joint Venture [Member] | ' | ' | ' | ' | ' | ' |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | ' | ' | 15.00% | ' | ' | ' |
Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | ' | ' | 25.00% | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | ' | 17.00% | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | ' | 13.00% | ' | ' | ' |
Related_party_transactions_and2
Related party transactions and balances (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Machinery | $625,196 | $623,895 |
Less: accumulated depreciation | -99,777 | -77,086 |
Carrying value of leased assets | 525,419 | 546,809 |
Shaanxi Coal and Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Machinery | 601,398 | 605,839 |
Less: accumulated depreciation | -97,602 | -76,740 |
Carrying value of leased assets | $503,796 | $529,099 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Revenue from Related Parties | $106,680 | $95,546 | $268,262 | $380,707 | ||
Long Steel Group [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Noncontrolling shareholder of Longmen Joint Venture | ' | ||
Revenue from Related Parties | 45,200 | 63,793 | 115,150 | 226,754 | ||
Sichuan Yutai Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Significant influence by Long Steel Group | ' | ||
Revenue from Related Parties | ' | ' | 0 | 72 | ||
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Significant influence by Long Steel Group | ' | ||
Revenue from Related Parties | 0 | [1] | 1,081 | [1] | 0 | 21,491 |
Shaanxi Haiyan Trade Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Significant influence by Long Steel Group | ' | ||
Revenue from Related Parties | 22,126 | [1] | 85 | [1] | 22,946 | 15,681 |
Shaanxi Shenganda Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Significant influence by Long Steel Group | ' | ||
Revenue from Related Parties | 22,216 | [1] | 19,866 | [1] | 69,919 | 56,545 |
Shaanxi Steel [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Majority shareholder of Long Steel Group | ' | ||
Revenue from Related Parties | 734 | 979 | 1,831 | 2,390 | ||
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Shareholder of Shaanxi Steel | ' | ||
Revenue from Related Parties | 14,406 | 7,951 | 35,795 | 22,577 | ||
Shaanxi Long Steel Group Baoji Steel Rolling Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Subsidiary of Long Steel Group | ' | ||
Revenue from Related Parties | 1,998 | 9 | 13,733 | 2,122 | ||
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Investee of Long Steel Group | ' | ||
Revenue from Related Parties | $0 | $1,782 | $8,888 | $33,075 | ||
[1] | 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. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Transaction, Purchases from Related Party | $144,806 | $146,438 | $640,355 | $573,922 | ||
Long Steel Group [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Noncontrolling shareholder of Longmen Joint Venture | ' | ||
Related Party Transaction, Purchases from Related Party | 27,649 | 101,606 | 279,925 | 376,104 | ||
Tianjin Hengying Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Partially owned by CEO through indirect shareholding | ' | ||
Related Party Transaction, Purchases from Related Party | ' | ' | 45,604 | 0 | ||
Tianjin General Quigang Pipe Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Partially owned by CEO through indirect shareholding | ' | ||
Related Party Transaction, Purchases from Related Party | 5,090 | [1] | 0 | [1] | 13,618 | 0 |
Hancheng Haiyan Coking Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Noncontrolling shareholder of Long Steel Group | ' | ||
Related Party Transaction, Purchases from Related Party | 41,690 | 31,331 | 125,957 | 148,322 | ||
Xi'an Pinghe Metallurgical Raw Material Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Noncontrolling shareholder of Long Steel Group | ' | ||
Related Party Transaction, Purchases from Related Party | 32,536 | 1,181 | 38,456 | 13,678 | ||
Shaanxi Long Steel Group Baoji Steel Rolling Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Subsidiary of Long Steel Group | ' | ||
Related Party Transaction, Purchases from Related Party | ' | ' | 0 | 53 | ||
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Investee of Long Steel Group | ' | ||
Related Party Transaction, Purchases from Related Party | 0 | 1 | 0 | 212 | ||
Shaanxi Huafu New Energy Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Significant influence by the Long Steel Group | ' | ||
Related Party Transaction, Purchases from Related Party | 7,636 | 10,529 | 21,857 | 28,618 | ||
Beijing Daishang Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' | ||
Related Party Transaction, Purchases from Related Party | 0 | 1,726 | 0 | 6,635 | ||
Tianwu General Steel Material Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Investee of General Steel (China) | ' | ||
Related Party Transaction, Purchases from Related Party | ' | ' | 83,649 | 0 | ||
Others [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Entities either owned or have significant influence by our affiliates or management | ' | ||
Related Party Transaction, Purchases from Related Party | 0 | 64 | 140 | 300 | ||
Maoming Shengze Trading Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Partially owned by CEO through indirect shareholding | ' | ||
Related Party Transaction, Purchases from Related Party | 16,764 | 0 | 16,764 | 0 | ||
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||
Related Party Relationship | ' | ' | 'Shareholder of Shaanxi Steel | ' | ||
Related Party Transaction, Purchases from Related Party | $13,441 | $0 | $14,385 | $0 | ||
[1] | The CEO referred to herein is the chief executive officer of General Steel Holdings, Inc. |
Related_party_transactions_and5
Related party transactions and balances (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Loan receivable - related party | $0 | $4,540 |
Teamlink Investment Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Loan receivable - related party | $0 | $4,540 |
Related_party_transactions_and6
Related party transactions and balances (Details 4) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Accounts Receivable, Related Parties, Current | $2,153 | $2,942 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Accounts Receivable, Related Parties, Current | 173 | 548 |
Tianjin Daqiuzhuang Steel Plates [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Accounts Receivable, Related Parties, Current | 19 | 19 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Accounts Receivable, Related Parties, Current | 1,961 | 1,741 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Accounts Receivable, Related Parties, Current | $0 | $634 |
Related_party_transactions_and7
Related party transactions and balances (Details 5) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Other receivables - related parties | $71,980 | $54,106 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Other receivables - related parties | 16,549 | 406 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Other receivables - related parties | 1,137 | 46,439 |
Tianjin General Quigang Pipe Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 9,391 | 1,247 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 24,311 | 491 |
Beijing Shenhua Xinyuan Metal Materials Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 5,840 | 4,901 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Other receivables - related parties | 322 | 622 |
Victory Energy Resource Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | 1,131 | 0 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other receivables - related parties | $13,299 | $0 |
Related_party_transactions_and8
Related party transactions and balances (Details 6) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Advances on inventory purchase - related parties | $127,899 | $83,003 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Advances on inventory purchase - related parties | 87 | 9,123 |
Shaanxi Shenganda Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Advances on inventory purchase - related parties | 0 | 25,607 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 11,721 | 10,343 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 51,304 | 16,158 |
Tianjin General Qiugang Pipe Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 20,868 | 555 |
Maoming Shengze Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Advances on inventory purchase - related parties | 43,888 | 21,197 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Advances on inventory purchase - related parties | $31 | $20 |
Related_party_transactions_and9
Related party transactions and balances (Details 7) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable - related parties | $265,744 | $235,692 |
Hancheng Haiyan Coking Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | ' |
Accounts payable - related parties | 72,240 | 58,163 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Accounts payable - related parties | 106,480 | 134,758 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | ' |
Accounts payable - related parties | 25,066 | 29,990 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | 945 | 958 |
Xi'an Pinghe Metallurgical Raw Material Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Long Steel Group | ' |
Accounts payable - related parties | 31,990 | 8,714 |
Henan Xinmi Kanghua Fire Refractory Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' |
Accounts payable - related parties | 799 | 716 |
Beijing Daishang Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | ' |
Accounts payable - related parties | 36 | 1,004 |
Tianwu General Steel Material Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Investee of General Steel (China) | ' |
Accounts payable - related parties | 19,207 | 759 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Accounts payable - related parties | 845 | 629 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | 0 | 1 |
Tianjin General Qiugang Pipe Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Accounts payable - related parties | $8,136 | $0 |
Recovered_Sheet8
Related party transactions and balances (Details 8) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Short term loans - related parties | $223,460 | $126,693 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Short term loans - related parties | 95,875 | 49,110 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | ' |
Short term loans - related parties | 74,171 | 28,216 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Short term loans - related parties | 52,746 | 33,183 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | 0 | 8,178 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | 0 | 6,548 |
Yangpu Capital Automobile [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Short term loans - related parties | $668 | $1,458 |
Recovered_Sheet9
Related party transactions and balances (Details 9) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Current maturities of long-term loans - related parties | $67,249 | $53,013 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Current maturities of long-term loans - related parties | $67,249 | $53,013 |
Recovered_Sheet10
Related party transactions and balances (Details 10) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Other payables - related parties | $101,475 | $94,079 |
Tianjin Hengying Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 11,731 | 380 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Other payables - related parties | 71,671 | 43,636 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Other payables - related parties | 3,727 | 44,363 |
Wendlar Investment Management Group Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Common control under CEO | ' |
Other payables - related parties | 1,125 | 895 |
Yangpu Capital Automobile [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 362 | 291 |
Tianjin Dazhan Industry Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 9,329 | 473 |
Maoming Shengze Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 2,723 | 1,745 |
Victory Energy Resource Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Partially owned by CEO through indirect shareholding | ' |
Other payables - related parties | 0 | 1,375 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Other payables - related parties | $807 | $921 |
Recovered_Sheet11
Related party transactions and balances (Details 11) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Customer deposits - related parties | $113,674 | $64,881 |
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | 10 | 10 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Shareholder of Shaanxi Steel | ' |
Customer deposits - related parties | 386 | 0 |
Long Steel Group [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Noncontrolling shareholder of Longmen Joint Venture | ' |
Customer deposits - related parties | 17,282 | 15,038 |
Shaanxi Junlong Rolling Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Investee of Long Steel Group | ' |
Customer deposits - related parties | 16 | 2,748 |
Shaanxi Shenganda Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | 0 | 275 |
Tianwu General Steel Material Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Investee of General Steel (China) | ' |
Customer deposits - related parties | 95,798 | 46,521 |
Others [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Entities either owned or have significant influence by our affiliates or management | ' |
Customer deposits - related parties | 0 | 289 |
Shaanxi Haiyan Trade Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Customer deposits - related parties | $182 | $0 |
Recovered_Sheet12
Related party transactions and balances (Details 12) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Deposit due to sales representatives - related parties | $2,308 | $1,997 |
Gansu Yulong Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Deposit due to sales representatives - related parties | 1,073 | 1,408 |
Shaanxi Yuchang Trading Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Deposit due to sales representatives - related parties | 585 | 589 |
Shaanxi Haiyan Trade Co Ltd [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Significant influence by Long Steel Group | ' |
Deposit due to sales representatives - related parties | $650 | $0 |
Recovered_Sheet13
Related party transactions and balances (Details 13) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Long-term loans - related party | $4,875 | $19,644 |
Shaanxi Steel [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Relationship | 'Majority shareholder of Long Steel Group | ' |
Long-term loans - related party | $4,875 | $19,644 |
Recovered_Sheet14
Related party transactions and balances (Details 14) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $77,444 | $77,199 | $77,199 |
Less: Lease income realized | -542 | -542 | -1,630 | -1,613 | -2,158 |
Exchange rate effect | ' | ' | -566 | ' | 2,403 |
Ending balance | 75,248 | ' | 75,248 | ' | 77,444 |
Current portion | -2,171 | ' | -2,171 | ' | -2,187 |
Noncurrent portion | $73,077 | ' | $73,077 | ' | $75,257 |
Recovered_Sheet15
Related party transactions and balances (Details Textual) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 19, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 19, 2013 | Nov. 19, 2013 |
USD ($) | USD ($) | USD ($) | 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 Dazhan Industry Co Ltd [Member] | Tianjin Dazhan Industry Co Ltd [Member] | Tianjin Dazhan Industry Co Ltd [Member] | Tianjin Dazhan Industry Co Ltd [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Loans Secured | $151.40 | $151.40 | $205.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Leases, Income Statement, Lease Revenue | ' | ' | ' | ' | 0.5 | 0.5 | 1.6 | 1.6 | ' | ' | ' | ' |
Percentage Of Equity Interest Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.00% | 28.00% |
Proceeds From Sale Of Equity Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.6 | 84.3 |
Percentage Of Equity Interest Retained | ' | ' | ' | 32.00% | ' | ' | ' | ' | ' | ' | 32.00% | 32.00% |
Gain On Equity Interest Deconsolidate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | 15.6 | 15.8 | ' | ' |
Cost Of Goods Sold From Related Parties | $49.20 | $141.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Details_Textual
Equity (Details Textual) (Consultant [Member], USD $) | 0 Months Ended | |
Aug. 21, 2014 | Feb. 03, 2014 | |
Consultant [Member] | ' | ' |
Exercise Price Of Common Stock | $1.04 | $1.01 |
Stock Issued During Period, Shares, Issued for Services | 80,000 | 80,000 |
Retirement_plan_Details_Textua
Retirement plan (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Contribution Plan Employer Matching Contribution Percent Criteria One | ' | ' | 20.00% | ' |
Defined Contribution Plan Employer Matching Contribution Percent Criteria Two | ' | ' | 12.00% | ' |
Pension Expense | $5 | $2.30 | $10.80 | $6.40 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | ' | ' | 8.00% | ' |
Commitment_and_contingencies_D
Commitment and contingencies (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitment And Contingencies [Line Items] | ' |
2015 | $871 |
2016 | 566 |
2017 | 566 |
2018 | 566 |
2019 | 566 |
Years after | 19,644 |
Total minimum payments required | $22,779 |
Commitment_and_contingencies_D1
Commitment and contingencies (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | $196,707 |
Line of credit [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 127,644 |
Guaranty Obligations, Guaranty Due Date | 'Various from December 2014 to September 2015 |
Three-party financing agreements [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 14,463 |
Guaranty Obligations, Guaranty Due Date | 'Various from April to June 2015 |
Confirming storage [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 41,600 |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2014 to April 2015 |
Financing by the rights of goods delivery in future [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | $13,000 |
Guaranty Obligations, Guaranty Due Date | 'October 2014 |
Commitment_and_contingencies_D2
Commitment and contingencies (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | $196,707 |
Xi'an Laisheng Logistics Co., Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 3,250 |
Guaranty Obligations, Guaranty Due Date | 'May 2015 |
Xi'an Kaiyuan Steel Sales Co., Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 6,500 |
Guaranty Obligations, Guaranty Due Date | 'January 2015 |
Hancheng Sanli Furnace Burden Co., Ltd. [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 16,250 |
Guaranty Obligations, Guaranty Due Date | 'March 2015 |
Chengdu Zhongyi Steel Co., Ltd. [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 8,125 |
Guaranty Obligations, Guaranty Due Date | 'March 2015 |
Shaanxi Fuping Steel Co., Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 3,088 |
Guaranty Obligations, Guaranty Due Date | 'June 2015 |
Shaanxi Longan Industry Co., Ltd. [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 8,125 |
Guaranty Obligations, Guaranty Due Date | 'December 2014 |
Long Steel Group [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 79,706 |
Guaranty Obligations, Guaranty Due Date | 'Various from December 2014 to September 2015 |
Hancheng Haiyan Coking Co Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 25,350 |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2014 to April 2015 |
Tianjin Dazhan Industry Co Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | 20,313 |
Guaranty Obligations, Guaranty Due Date | 'Various from January to March 2015 |
Tianjin Hengying Trading Co Ltd [Member] | ' |
Commitment And Contingencies [Line Items] | ' |
Guarantor Obligations, Current Carrying Value | $26,000 |
Guaranty Obligations, Guaranty Due Date | 'Various from October 2014 to January 2015 |
Commitment_and_contingencies_D3
Commitment and contingencies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Commitment And Contingencies [Line Items] | ' | ' | ' | ' |
Operating Leases, Rent Expense | $0.90 | $0.80 | $2.40 | $2.40 |
Contractual Obligation | 196.7 | ' | 196.7 | ' |
Subsequent Event [Member] | ' | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' | ' |
Contractual Obligation | $110.70 | ' | $110.70 | ' |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Total sales | $583,157 | $613,853 | $1,765,434 | $1,969,375 | ' | |||||
Interdivision sales | -20,335 | -3,758 | -20,388 | -54,338 | ' | |||||
Consolidated sales | 562,822 | 610,095 | 1,745,046 | 1,915,037 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Total gross profit (loss) | 9,610 | 8,231 | 15,143 | -23,238 | ' | |||||
Interdivision gross profit | 0 | 0 | 0 | 0 | ' | |||||
Consolidated gross profit (loss) | 9,610 | 8,231 | 15,143 | -23,238 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Total income (loss) from operations | 10,309 | 28,912 | -24,896 | 16,239 | ' | |||||
Interdivision income (loss) from operations | 0 | 0 | 0 | 0 | ' | |||||
Reconciling item | -2,406 | [1] | -1,177 | [1] | -4,539 | [1] | -3,504 | [1] | ' | |
Consolidated income (loss) from operations | 7,903 | 27,734 | -29,435 | 12,735 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Total net loss attributable to General Steel Holdings, Inc. | -1,125 | 4,917 | -53,750 | -29,616 | ' | |||||
Interdivision net income | 0 | 0 | 0 | 0 | ' | |||||
Reconciling item (1) | -2,365 | [1] | -1,116 | [1] | -4,323 | [1] | -3,298 | [1] | ' | |
Consolidated net loss attributable to General Steel Holdings, Inc. | -3,490 | 3,801 | -58,073 | -32,914 | ' | |||||
Depreciation, amortization and depletion: | ' | ' | ' | ' | ' | |||||
Consolidated depreciation, amortization and depletion | 23,908 | 21,888 | 71,696 | 64,955 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Interdivision interest expenses | 0 | 0 | 0 | 0 | ' | |||||
Reconciling item | 2 | [1] | 1 | [1] | 98 | [1] | 3 | [1] | ' | |
Consolidated interest expenses | 19,422 | 22,842 | 74,736 | 68,915 | ' | |||||
Capital expenditure | ' | ' | ' | ' | ' | |||||
Reconciling item | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ' | |
Consolidated capital expenditures | 5,113 | 16,455 | 117,826 | 60,474 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | -73,311 | ' | -73,311 | ' | -34,213 | |||||
Reconciling item | 1,945 | [2] | ' | 1,945 | [2] | ' | 5,817 | [2] | ||
TOTAL ASSETS | 2,768,277 | ' | 2,768,277 | ' | 2,700,358 | |||||
Longmen Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Total sales | 559,317 | 606,444 | 1,740,645 | 1,903,933 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Total gross profit (loss) | 9,010 | 8,122 | 15,020 | -23,704 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Total income (loss) from operations | 9,746 | 30,306 | -21,420 | 20,558 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Total net loss attributable to General Steel Holdings, Inc. | -3,378 | 8,284 | -49,489 | -18,335 | ' | |||||
Depreciation, amortization and depletion: | ' | ' | ' | ' | ' | |||||
Consolidated depreciation, amortization and depletion | 22,960 | 21,014 | 69,268 | 62,295 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 17,831 | 20,591 | 69,952 | 60,984 | ' | |||||
Capital expenditure | ' | ' | ' | ' | ' | |||||
Consolidated capital expenditures | 5,096 | 16,455 | 117,695 | 60,461 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | 2,583,371 | ' | 2,583,371 | ' | 2,573,212 | |||||
Maoming Hengda Steel Company Ltd [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Total sales | 1,122 | 252 | 1,373 | 3,124 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Total gross profit (loss) | -80 | -57 | -35 | 188 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Total income (loss) from operations | -248 | -719 | -824 | -1,741 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Total net loss attributable to General Steel Holdings, Inc. | -318 | -694 | -978 | -1,681 | ' | |||||
Depreciation, amortization and depletion: | ' | ' | ' | ' | ' | |||||
Consolidated depreciation, amortization and depletion | 437 | 307 | 899 | 933 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 1 | 1 | 1 | 1 | ' | |||||
Capital expenditure | ' | ' | ' | ' | ' | |||||
Consolidated capital expenditures | 16 | 0 | 48 | 2 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | 27,154 | ' | 27,154 | ' | 29,211 | |||||
Baotou Steel Pipe Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Total sales | 2,383 | 2,921 | 3,028 | 3,902 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Total gross profit (loss) | 178 | 160 | 158 | 249 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Total income (loss) from operations | -30 | 20 | -207 | -285 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Total net loss attributable to General Steel Holdings, Inc. | -24 | 16 | -165 | -227 | ' | |||||
Depreciation, amortization and depletion: | ' | ' | ' | ' | ' | |||||
Consolidated depreciation, amortization and depletion | 64 | 62 | 185 | 185 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 0 | 0 | 0 | 0 | ' | |||||
Capital expenditure | ' | ' | ' | ' | ' | |||||
Consolidated capital expenditures | 1 | 0 | 1 | 8 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | 5,601 | ' | 5,601 | ' | 4,448 | |||||
General Steel (China) Tianwu Joint Venture [Member] | ' | ' | ' | ' | ' | |||||
Sales: | ' | ' | ' | ' | ' | |||||
Total sales | 20,335 | 4,236 | 20,388 | 58,416 | ' | |||||
Gross profit: | ' | ' | ' | ' | ' | |||||
Total gross profit (loss) | 502 | 6 | 0 | 29 | ' | |||||
Income (loss) from operations: | ' | ' | ' | ' | ' | |||||
Total income (loss) from operations | 841 | -695 | -2,445 | -2,293 | ' | |||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ' | ' | ' | ' | ' | |||||
Total net loss attributable to General Steel Holdings, Inc. | 2,595 | -2,689 | -3,118 | -9,373 | ' | |||||
Depreciation, amortization and depletion: | ' | ' | ' | ' | ' | |||||
Consolidated depreciation, amortization and depletion | 447 | 505 | 1,344 | 1,542 | ' | |||||
Finance/interest expenses: | ' | ' | ' | ' | ' | |||||
Segment Reporting Finance Interest Expense | 1,588 | 2,249 | 4,685 | 7,927 | ' | |||||
Capital expenditure | ' | ' | ' | ' | ' | |||||
Consolidated capital expenditures | 0 | 0 | 82 | 3 | ' | |||||
ASSETS | ' | ' | ' | ' | ' | |||||
Interdivision Assets | $223,517 | ' | $223,517 | ' | $121,883 | |||||
[1] | Reconciling item represents the unallocated income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three and nine months ended September 30, 2014 and 2013. | |||||||||
[2] | Reconciling item represents assets held at General Steel Holdings, Inc., General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel as of September 30, 2014 and December 31, 2013. |
Subsequent_events_Details_Text
Subsequent events (Details Textual) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
USD ($) | USD ($) | Longmen Joint Venture, And Shaanxi Coal [Member] | Longmen Joint Venture, And Shaanxi Coal [Member] | Subsequent Event [Member] | |
USD ($) | CNY | Subscription Arrangement [Member] | |||
USD ($) | |||||
Common Stock Purchase Price Of Subscription Agreement | ' | ' | ' | ' | $1.50 |
Description Of Purchase Price Subscription Agreement | ' | ' | ' | ' | 'The Purchase Price represents a 23% premium to the volume weighted average closing price of the Common Stock from March 5, 2014 to July 11, 2014, which ranged from $0.90 to $1.47 per share of common stock during the period. |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | ' | ' | $0.00 |
Common Stock, Shares Subscribed but Unissued | ' | ' | ' | ' | 5,000,000 |
Common Stock, Value, Subscriptions | ' | ' | ' | ' | $7,500,000 |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 44.70% |
Short-Term Debt | $248,289,000 | $301,917,000 | $32,500,000 | 200,000,000 | ' |
Short-term Debt, Weighted Average Interest Rate | ' | ' | 7.60% | 7.60% | ' |