Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 14-May-15 | |
Document Information [Line Items] | ||
Entity Registrant Name | GENERAL STEEL HOLDINGS INC | |
Entity Central Index Key | 1239188 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | GSI | |
Entity Common Stock, Shares Outstanding | 62,486,282 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash | $9,736 | $11,641 |
Restricted cash | 249,820 | 355,685 |
Notes receivable | 1,606 | 10,290 |
Restricted notes receivable | 80,889 | 111,801 |
Loans receivable | 42,569 | 36,001 |
Loans receivable - related party | 6,728 | 34,713 |
Accounts receivable, net | 10,686 | 9,321 |
Accounts receivable - related parties, net | 59,057 | 8,498 |
Other receivables, net | 103,291 | 63,746 |
Other receivables - related parties, net | 23,079 | 39,670 |
Inventories | 148,295 | 156,327 |
Advances on inventory purchase, net | 49,440 | 73,819 |
Advances on inventory purchase - related parties | 95,757 | 45,617 |
Prepaid expense and other | 5,279 | 4,803 |
Prepaid taxes | 5,851 | 5,789 |
Short-term investment | 7,503 | 2,688 |
TOTAL CURRENT ASSETS | 899,586 | 970,409 |
PLANT AND EQUIPMENT, net | 1,561,511 | 1,543,136 |
OTHER ASSETS: | ||
Advances on equipment purchase | 5,270 | 11,438 |
Investment in unconsolidated entities | 16,705 | 16,823 |
Long-term deferred expense | 452 | 458 |
Intangible assets, net of accumulated amortization | 22,885 | 22,960 |
TOTAL OTHER ASSETS | 45,312 | 51,679 |
TOTAL ASSETS | 2,506,409 | 2,565,224 |
CURRENT LIABILITIES: | ||
Short term notes payable | 448,362 | 661,635 |
Accounts payable | 608,678 | 612,801 |
Accounts payable - related parties | 226,964 | 207,783 |
Short term loans - banks | 232,148 | 257,502 |
Short term loans - others | 51,995 | 60,717 |
Short term loans - related parties | 217,397 | 46,380 |
Other payables and accrued liabilities | 51,985 | 55,488 |
Other payables - related parties | 96,277 | 87,252 |
Customer deposits | 139,106 | 92,974 |
Customer deposits - related parties | 148,176 | 132,616 |
Deposit due to sales representatives | 19,361 | 17,871 |
Deposit due to sales representatives - related parties | 2,553 | 2,509 |
Taxes payable | 9,393 | 5,201 |
Deferred lease income, current | 2,179 | 2,176 |
Capital lease obligations, current | 8,678 | 8,508 |
TOTAL CURRENT LIABILITIES | 2,263,252 | 2,251,413 |
NON-CURRENT LIABILITIES: | ||
Long-term loans - related party | 352,850 | 339,549 |
Deferred lease income, noncurrent | 72,258 | 72,713 |
Capital lease obligations, noncurrent | 397,416 | 393,252 |
Profit sharing liability at fair value | 57,538 | 70,422 |
TOTAL NON-CURRENT LIABILITIES | 880,062 | 875,936 |
TOTAL LIABILITIES | 3,143,314 | 3,127,349 |
COMMITMENTS AND CONTINGENCIES | ||
DEFICIENCY: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of March 31, 2015 and December 31, 2014 | 3 | 3 |
Common stock, $0.001 par value, 200,000,000 shares authorized, 64,458,588 shares issued and 61,986,282 shares outstanding as of March 31, 2015 and December 31, 2014, respectively | 64 | 64 |
Treasury stock, at cost, 2,472,306 shares as of March 31, 2015 and December 31, 2014 | -4,199 | -4,199 |
Paid-in-capital | 115,563 | 115,494 |
Statutory reserves | 6,539 | 6,472 |
Accumulated deficits | -508,674 | -463,521 |
Accumulated other comprehensive income | 163 | 644 |
TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | -390,541 | -345,043 |
NONCONTROLLING INTERESTS | -246,364 | -217,082 |
TOTAL DEFICIENCY | -636,905 | -562,125 |
TOTAL LIABILITIES AND DEFICIENCY | $2,506,409 | $2,565,224 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 64,458,588 | 64,458,588 |
Common stock, shares, outstanding | 61,986,282 | 61,986,282 |
Treasury stock, shares | 2,472,306 | 2,472,306 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
SALES | $270,769 | $512,005 |
SALES - RELATED PARTIES | 57,395 | 82,206 |
TOTAL SALES | 328,164 | 594,211 |
COST OF GOODS SOLD | 297,565 | 530,744 |
COST OF GOODS SOLD - RELATED PARTIES | 62,746 | 86,028 |
TOTAL COST OF GOODS SOLD | 360,311 | 616,772 |
GROSS LOSS | -32,147 | -22,561 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | -17,355 | -21,053 |
UNALLOCATED OVERHEADS EXPENSES | -19,134 | 0 |
CHANGE IN FAIR VALUE OF PROFIT SHARING LIABILITY | 12,924 | -49 |
LOSS FROM OPERATIONS | -55,712 | -43,663 |
OTHER INCOME (EXPENSE) | ||
Interest income | 2,331 | 3,192 |
Finance/interest expense | -20,570 | -28,695 |
Gain on disposal of equipment and intangible assets | 16 | 46 |
(Loss) income from equity investments | -37 | 13 |
Foreign currency transaction loss | -873 | -854 |
Lease income | 543 | 546 |
Other non-operating income (expense), net | 223 | -176 |
Other expense, net | -18,367 | -25,928 |
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | -74,079 | -69,591 |
PROVISION FOR INCOME TAXES | 30 | 5 |
NET LOSS | -74,109 | -69,596 |
Less: Net loss attributable to noncontrolling interest | -28,956 | -26,032 |
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -45,153 | -43,564 |
NET LOSS | -74,109 | -69,596 |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation adjustments | -853 | 4,670 |
COMPREHENSIVE LOSS | -74,962 | -64,926 |
Less: Comprehensive loss attributable to noncontrolling interest | -29,328 | -24,226 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | ($45,634) | ($40,700) |
WEIGHTED AVERAGE NUMBER OF SHARES | ||
Basic and Diluted (in shares) | 61,986 | 55,813 |
LOSS PER SHARE | ||
Basic and Diluted (in dollars per share) | ($0.73) | ($0.78) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($74,109) | ($69,596) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Depreciation, amortization and depletion | 25,164 | 24,346 |
Change in fair value of profit sharing liability | -12,924 | 49 |
Gain on disposal of equipment and intangible assets | -16 | -46 |
Provision (recovery) of doubtful accounts | 1,279 | -251 |
Reservation of mine maintenance fee | 113 | 242 |
Stock issued for services and compensation | 69 | 150 |
Amortization of deferred financing cost on capital lease | 4,966 | 5,086 |
(Loss) income from equity investments | 37 | -13 |
Foreign currency transaction loss | 873 | 854 |
Deferred lease income | -543 | -546 |
Changes in operating assets and liabilities | ||
Notes receivable | 32,504 | -70,354 |
Accounts receivable | -1,373 | -102 |
Accounts receivable - related parties | -50,361 | -1,569 |
Other receivables | -40,476 | 355 |
Other receivables - related parties | 16,577 | -4,219 |
Inventories | 7,327 | -730 |
Advances on inventory purchases | 24,380 | 176 |
Advances on inventory purchases - related parties | -55,767 | -38,419 |
Prepaid expense and other | -468 | -516 |
Long-term deferred expense | 7 | 56 |
Prepaid taxes | -54 | 4,963 |
Accounts payable | -7,706 | 59,351 |
Accounts payable - related parties | 18,856 | 16,986 |
Other payables and accrued liabilities | -3,625 | 15,300 |
Other payables - related parties | 8,960 | -12,676 |
Customer deposits | 45,848 | 20,043 |
Customer deposits - related parties | 15,341 | 113,895 |
Taxes payable | 4,171 | 2,708 |
Net cash (used in) provided by operating activities | -40,950 | 65,523 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Restricted cash | 105,911 | -32,943 |
Loans to unrelated parties | -6,500 | 0 |
Repayments from related parties | 33,791 | 0 |
Cash proceeds from short term investment | 81 | 164 |
Payments for short term investment | -4,875 | 0 |
Cash proceeds from sales of equipment and intangible assets | 0 | 24 |
Equipment purchase and intangible assets | -31,589 | -56,861 |
Net cash provided by (used in) investing activities | 96,819 | -89,616 |
CASH FLOWS FINANCING ACTIVITIES: | ||
Restricted notes receivable | 30,934 | 131,971 |
Borrowings on short term notes payable | 96,525 | 439,342 |
Payments on short term notes payable | -309,823 | -485,455 |
Borrowings on short term loans - bank | 61,023 | 95,120 |
Payments on short term loans - bank | -87,471 | -165,711 |
Borrowings on short term loan - others | 74,517 | 9,853 |
Payments on short term loans - others | -54,275 | -14,426 |
Borrowings on short term loan - related parties | 75,641 | 24,528 |
Payments on short term loans - related parties | -569 | -5,849 |
Deposits due to sales representatives | 1,462 | -425 |
Deposits due to sales representatives - related parties | 41 | 0 |
Borrowings on long-term loans - related party | 56,063 | 0 |
Payments on long-term loans - related party | -813 | 0 |
Principal payment on capital lease obligation | -1,074 | 0 |
Net cash (used in) provided by financing activities | -57,819 | 28,948 |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 45 | -444 |
(DECREASE) INCREASE IN CASH | -1,905 | 4,411 |
CASH, beginning of period | 11,641 | 31,967 |
CASH, end of period | $9,736 | $36,378 |
Organization_and_Operations
Organization and Operations | 3 Months Ended | ||
Mar. 31, 2015 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [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 cumulative 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”, Note 15 “Capital lease obligations” and Note 16 “Profit sharing liability”. | |||
In view of the near-term challenges for the steel sector (see Note 2(d) Liquidity and Going Concern), the Company strategically accelerating the Company’s business transformation. The Company’s transformation strategy is to pursue opportunities that offer compelling benefits to our organization and shareholders, including: | |||
· | First, strengthen the Company’s financials while providing the financial flexibility to pursue higher return, higher growth opportunities; | ||
· | Second, reduce the complexity of the Company’s business structure, which is consistent with the Company’s objectives for internal simplification and operating efficiency; | ||
· | Third, diversify operating risk in order to lower the Company’s high reliance on steel business, while at the same time leverage on the Company’s vast vertical resources in the steel industry; and | ||
· | Fourth, pursue opportunities for additional value creation. | ||
The Company formed a joint venture, Tianjin General Shengyuan IoT Technology Co., Ltd. (“General Shengyuan IoT”), in February of 2015 with an RFID Expert team to develop and commercialize RFID technologies and data solutions. The formation of this joint venture represents a unique opportunity to accelerate the Company’s expansion into the vibrant logistics and Internet-of-Things sectors. General Shengyuan IoT is still in the development stage and no revenues and significant operating expenses during the three months ended March 31, 2015. | |||
Summary_of_significant_account
Summary of significant accounting policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 2014 annual report on Form 10-K filed on April 10, 2015. | |||||||||||||||||
(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 | % | ||||||||||||||
Tianjin General Shengyuan IoT Technology Co., Ltd. (“General Shengyuan”) | PRC | 70 | % | ||||||||||||||
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 | % | ||||||||||||||
Baotou Steel | |||||||||||||||||
Prior to December 31, 2014, the Company held an 80.0% equity interest in Baotou Steel – General Steel Special Steel Pipe Joint Venture Co., Ltd. (“Baotou Steel”) through General Steel (China). On December 31, 2014, the Company sold its 80.0% equity interest in Baotou Steel to Tianjin Shuangjie Liansheng Rolled Steel Co., Ltd., an unrelated party for $0.7 million (RMB 4.0 million), receivable within one year of the sale. As a result of this transaction, the Company met the criteria under ASC 810-10-40-4 to deconsolidate Baotou Steel at disposal date and recognized a gain in accordance with ASC 810-10-40-5. | |||||||||||||||||
General Shengyuan | |||||||||||||||||
On February 13, 2015, the Company formed a joint venture entity, Tianjin General Shengyuan IoT Technology Co., Ltd, with a team of radio-frequency identification (“RFID”) experts (the “Expert Team”), to develop and commercialize RFID technology data solutions. Under the terms of the Agreement, the Company owned 70% of the joint venture by contributing $1.6 million (RMB 10.0 million), while the Expert Team committed to contribute intellectual property, including proprietary RFID technologies, licensed patents and domain expertise. | |||||||||||||||||
(b) | Principles of consolidation – subsidiaries | ||||||||||||||||
The accompanying 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(d) Liquidity and Going Concern. | |||||||||||||||||
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: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 726,110 | $ | 837,135 | |||||||||||||
Plant and equipment, net | 1,557,027 | 1,537,687 | |||||||||||||||
Other noncurrent assets | 27,024 | 33,396 | |||||||||||||||
Total assets | 2,310,161 | 2,408,218 | |||||||||||||||
Total liabilities | -2,920,281 | -2,946,126 | |||||||||||||||
Net liabilities | $ | -610,120 | $ | -537,908 | |||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 432,052 | $ | 638,829 | |||||||||||||
Accounts payable | 596,221 | 605,025 | |||||||||||||||
Accounts payable - related parties | 222,595 | 205,914 | |||||||||||||||
Short term loans - bank | 191,536 | 216,940 | |||||||||||||||
Short term loans - others | 45,795 | 54,524 | |||||||||||||||
Short term loans - related parties | 209,553 | 45,710 | |||||||||||||||
Other payables and accrued liabilities | 44,286 | 47,121 | |||||||||||||||
Other payables - related parties | 69,890 | 78,615 | |||||||||||||||
Customer deposits | 129,896 | 87,372 | |||||||||||||||
Customer deposits - related parties | 43,654 | 34,895 | |||||||||||||||
Deposit due to sales representatives | 19,361 | 17,871 | |||||||||||||||
Deposit due to sales representatives – related parties | 2,553 | 2,509 | |||||||||||||||
Taxes payable | 8,192 | 4,026 | |||||||||||||||
Deferred lease income | 2,179 | 2,176 | |||||||||||||||
Capital lease obligations, current | 8,678 | 8,508 | |||||||||||||||
Intercompany payable to be eliminated | 13,778 | 20,155 | |||||||||||||||
Total current liabilities | 2,040,219 | 2,070,190 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 352,850 | 339,549 | |||||||||||||||
Deferred lease income - noncurrent | 72,258 | 72,713 | |||||||||||||||
Capital lease obligations, noncurrent | 397,416 | 393,252 | |||||||||||||||
Profit sharing liability | 57,538 | 70,422 | |||||||||||||||
Total non-current liabilities | 880,062 | 875,936 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 2,920,281 | $ | 2,946,126 | |||||||||||||
Three months ended | Three months ended | ||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 328,158 | $ | 594,014 | |||||||||||||
Gross loss | $ | -32,147 | $ | -22,219 | |||||||||||||
Loss from operations | $ | -53,498 | $ | -39,294 | |||||||||||||
Net loss attributable to controlling interest | $ | -42,405 | $ | -38,034 | |||||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Longmen Joint Venture has two consolidated subsidiaries, Hualong and Huatianyulong, in which it does not hold a controlling interest. Hualong and Huatianyulong are separate legal entities which were established in the PRC as limited liability companies and subsequently 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 March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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 March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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 a majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. | |||||||||||||||||
(d) | Liquidity and going concern | ||||||||||||||||
The Company’s accounts have been prepared assuming that the company will continue as a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon aligning its sources of funding (debt and equity) with the expenditure requirements of the Company and repayment of the short-term debt facilities as and when they fall due. | |||||||||||||||||
The steel business is capital intensive and as a normal industry practice in PRC, the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties, financing sales, bank acceptance notes, and capital leases have been utilized to finance the working capital requirements and the capital expenditures of the Company. As a result, the Company’s debt to equity ratio as of March 31, 2015 and December 31, 2014 were (4.9) and (5.6), respectively. As of March 31, 2015, the Company’s current liabilities exceed current assets (excluding non-cash item) by $1.4 billion, which together with the gross loss from operations raises substantial doubt about its ability to continue as a going concern. | |||||||||||||||||
Our steel business has faced very tough market conditions and challenging profitability over the last several years, and based on current trends, we think the near-term challenges for the steel sector will likely linger. In reaction to this challenging market, we are proactively reviewing our strategy and asset portfolio and seeking to restructure low-efficient, non-core assets, as well as idle land resources to unlock hidden fair value. | |||||||||||||||||
The Company aims to transform into a leaner and fitter organization with better profitability. As such, the Company is strategically accelerating its business transformation to pursue opportunities that offer compelling benefits to the Company and shareholders, including: | |||||||||||||||||
· | First, strengthen the Company’s financials while providing the financial flexibility to pursue higher return, higher growth opportunities; | ||||||||||||||||
· | Second, reduce the complexity of the Company’s business structure, which is consistent with our objectives for internal simplification and operating efficiency; | ||||||||||||||||
· | Third, diversify operating risk in order to lower the Company’s high reliance on steel business, while at the same time leverage on the Company’s vast vertical resources in the steel industry; and | ||||||||||||||||
· | Fourth, pursue opportunities for additional value creation. | ||||||||||||||||
Management has implemented the following plans that are intended to mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. | |||||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for majority of total sales of the Company. As such, the majority of the Company’s working capital needs come from Longmen Joint Venture. The Company’s ability to continue as a going concern depends heavily on Longmen Joint Venture’s operations. Longmen Joint Venture has obtained different types of financial supports, which are listed below by category: | |||||||||||||||||
Line of credit | |||||||||||||||||
The Company has lines of credit from the listed major banks totaling $142.0 million with expiration dates ranging from January 21, 2016 to October 14, 2016. | |||||||||||||||||
Banks | Amount of | Repayment Date | |||||||||||||||
Line of Credit | |||||||||||||||||
(in millions) | |||||||||||||||||
China Everbright Bank | 19.6 | January 21, 2016* | |||||||||||||||
Huaxia Bank | 24.5 | January 30, 2016* | |||||||||||||||
Bank of Beijing | 81.6 | 14-Oct-16 | |||||||||||||||
Bank of Xi’an | 16.3 | February 4, 2016* | |||||||||||||||
Total | $ | 142 | |||||||||||||||
*Management expects the lines of credit will be extended after the repayment dates. | |||||||||||||||||
As of the date of this report, the Company utilized $39.5 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 $897.1 million with the following companies: | |||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 244.7 | ||||||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 163.1 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 489.3 | |||||||||||||||
Total | $ | 897.1 | |||||||||||||||
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 $244.7 million. Company B signed a three-year agreement with Longmen Joint Venture on January 22, 2014 to finance its coke purchases up to $163.1 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 $77.6 million and $63.4 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 $489.3 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’s payable to Company C was approximately $16.2 million | |||||||||||||||||
Other financing | |||||||||||||||||
On April 22, 2014, April 23, 2014, and April 30, 2015, Longmen Joint Venture signed two-to-three-year payment extension agreements with Company D, E, F, G and H listed below. In total, Longmen Joint Venture can obtain $412.8 million in financial support from payment extensions granted by the following five companies: | |||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.6 | ||||||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86.4 | |||||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.6 | |||||||||||||||
Company G – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Company H – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Total | $ | 412.8 | |||||||||||||||
As of the date of this report, our payables to Company D, Company E, Company F, Company G, and Company H are approximately $8.3 million, $30.1 million, $42.7 million, $0, and $0.9 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 March 31, 2015, Longmen Joint Venture has collected a total amount of $21.9 million. Historically, this amount is quite stable and we do not expect a big fluctuation in this amount for the next twelve months from March 31, 2015 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 March 31, 2016. However, this opinion is based on the demand of the Company's products, economic conditions, the overcapacity issue in the steel industry and the Company's operating results not continuing to deteriorate and on our vendors and related parties being able to provide continued liquidity, as summarized below. The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | |||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months | |||||||||||||||||
ended March 31, 2016 | |||||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of March 31, 2015 (unaudited) | $ | -1,361.50 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 142 | ||||||||||||||||
Cash provided by vendor financing | 897.1 | ||||||||||||||||
Cash provided by other financing | 412.8 | ||||||||||||||||
Cash provided by sales representatives | 21.9 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended March 31, 2016 | -39.3 | ||||||||||||||||
Cash projected to be used for financing cost in the twelve months ended March 31, 2016 | -46.2 | ||||||||||||||||
Net projected change in cash for the twelve months ended March 31, 2016 | $ | 26.8 | |||||||||||||||
(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 for property, plant and equipment, and potential losses on uncollectible receivables, allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital lease and the present value of the net minimum lease payments of the capital lease. Actual results could differ from these estimates. | |||||||||||||||||
One of the Company’s most significant estimates is the determination of fair value of the profit sharing liability. Since the liability is calculated and largely based on management’s expectations of product demand, pricing, raw materials cost and projected manufacturing efficiencies, it is susceptible to material changes when actual results deviate from those expectations. While management believes its current assumptions are reasonable and achievable, there is no assurance that those future expectations will be met or that significant adjustments won’t be required in the future. | |||||||||||||||||
(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. | |||||||||||||||||
Through the quarterly ended March 31, 2015, the Company has incurred recurring losses from the Company’s operations from the last several years as the Company’s steel business has faced very tough market conditions and challenging profitability. Management has continued its effort to implementing cost savings on our manufacturing overhead costs and to reduce our unit production cost. The Company has forecasted its loss will be continued until year 2017 and expected to make a turning point and become profitable in year 2018 and beyond. The Company’s forecast is based on current market condition, if the future market condition is different from its forecast, the Company might continue to incur additional loss in 2018 and beyond and the Company’s assets pool of its long-lived assets may become impaired. | |||||||||||||||||
The Company has significant exposure to the price fluctuation of raw materials and energy prices as part of its normal operations. As of March 31, 2015 and December 31, 2014, the Company did not have any open commodity contracts to mitigate such risks. | |||||||||||||||||
Cash includes demand deposits in accounts maintained with banks within the PRC, Hong Kong and the United States. Total cash (including restricted cash balances) in these banks on March 31, 2015 and December 31, 2014 amounted to $259.6 million and $367.2 million, including $0.6 million and $1.0 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of March 31, 2015, $0.01 million cash in the bank was covered by insurance. The Company has not experienced any losses in other bank accounts and believes it is not exposed to any risks on its cash in bank accounts. | |||||||||||||||||
Two of the Company’s customers individually accounted for 12.1% and 10.5% of total sales for the three months ended March 31, 2015, respectively. One customer individually accounted for 81.7% of total accounts receivable, including related parties as of March 31, 2015. None of the Company’s customers accounted for more than 10% of total sales for the three months ended March 31, 2014. Two customers individually accounted for 32.1% and 20.5% of total accounts receivable, including related parties as of December 31, 2014, respectively. | |||||||||||||||||
None of the Company’s suppliers individually accounted for more than 10% of the total purchases for the three months ended March 31, 2015 and one of the Company’s suppliers individually accounted for 15.4% of the total purchases for the three months ended March 31, 2014. None of the Company’s suppliers individually accounted for more than 10% of total accounts payable as March 31, 2015 and December 31, 2014. | |||||||||||||||||
(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 statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | |||||||||||||||||
Translation adjustments included in accumulated other comprehensive income amounted to $0.2 million and $0.6 million as of March 31, 2015 and December 31, 2014, respectively. The balance sheet amounts, with the exception of equity at March 31, 2015 and December 31, 2014 were translated at 6.13 RMB and 6.14 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the three months ended March 31, 2015 and 2014 were 6.15 RMB and 6.12 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
(h) | Financial instruments | ||||||||||||||||
The accounting 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 market 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. | ||||||||||||||||
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 6.7%. | |||||||||||||||||
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. On November 22, 2014, the People’s Bank of China decreased standard bank borrowing rate across the board by 0.4%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.4% from 7.3% to 6.9%. On May 11, 2015, the People’s Bank of China decreased the standard bank borrowing rate again across the board by 0.25%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.25% from 6.9% to 6.7%. | |||||||||||||||||
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 | ||||||||||||||||
The above assumptions were reviewed by the Company at March 31, 2015 and December 31, 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. | |||||||||||||||||
The major drivers of the change in our estimate were the continuing decrease in the selling price of our products as well as a continuing downtrend in the sluggish infrastructure investment and consumption growth for the next ten years or so. As such, as of December 31, 2014 financial statement issuance we had lowered our projected growth in the steel market for approximately ten years as compared to our previous estimates at December 31, 2013. The variables and the impact on our inputs to the 2014 valuation of profit sharing fair value, as compared to the 2013 valuation of the profit sharing fair value can be summarized as follows: | |||||||||||||||||
- | Volume Inputs: The most recent 5 year China GDP forecast and Shaanxi GDP forecast decreased on average by 0.4% and 1.4% of GDP, respectively, versus the forecast used in 2013. | ||||||||||||||||
- | Steel Sales Price Inputs: The most recent China Steel Association price index, together with our actual result decreased, on average, by 5.6% versus the same forecast used in 2013. | ||||||||||||||||
- | Raw Material Cost Inputs: The most recent China Steel Association price index, together with the our actual result decreased, on average, by 4.7% versus the same forecast used in 2013 | ||||||||||||||||
The above reduced our Gross Profit % over the next 5 years by, on average, 0.4% from the 2013 valuation. In addition, the above reduced our Gross Profit % over the remaining profit sharing period of 11.33 years by, on average, 1.75% from the 2013 valuation at December 31, 2014. | |||||||||||||||||
As a result of the changes in valuation inputs noted above for the year ended December 31, 2014, the Company recognized a gain on the change in the fair value of the profit sharing liability of $91.0 million due to a $110.6 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits and a $0.1 million reduction resulting from the Asset Pool’s operating results for the year ended December 31, 2014 being slightly less favorable than previously estimated as of December 31, 2013, offset by a $8.1 million loss resulting from the 0.4% reduction of the present value discount rate and a $11.5 million loss from the present value discount. | |||||||||||||||||
For the three months ended March 31, 2015, the Company recognized a $12.9 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits based on the April 2015 actual operating results and consideration for Chinese steel market trends in April 2015 as well as the May 11, 2015 change to the Borrowing Rate by 0.25%. These further recent changes in market conditions resulted in a decrease in the expected liability of $16.6 million primarily from adjustments to the 2015 and 2016 expected cash flows as well as a $2.5 million loss from the reduction in the present value discount rate of 0.25% and a $1.2 million loss from the present value discount. The estimated fair value of the profit sharing liability at March 31, 2015 is $57.5 million. | |||||||||||||||||
The variables and the impact on our inputs to the first quarter of 2015 valuation of profit sharing fair value, as compared to the 2014 valuation of the profit sharing fair value can be summarized as follows: | |||||||||||||||||
- | Volume Inputs: the Company reduced our projected sales volume in 2015 by 3% versus the forecast used in 2014. | ||||||||||||||||
- | Steel Sales Price Inputs: the Company reduced our projected selling price in 2015 by 12% versus the forecast used in 2014 and reduced our projected selling price in 2016 by 7% versus the forecast used in 2014. | ||||||||||||||||
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 borrowings rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of March 31, 2015 would have been $66.2 million and we would increase the loss from the change in the fair value of the profit sharing liability by $8.7 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 March 31, 2015 would have been $53.1 million and we would increase the gain from the change in the fair value of the profit sharing liability by $4.4 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 March 31, 2015: | |||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at March 31, 2015 | |||||||||||||||
of March 31, 2015 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
Total | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
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, 2014: | |||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | |||||||||||||||
of December 31, | 2014 | ||||||||||||||||
2014 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
Total | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
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 three months ended March 31, 2015 and for the year ended December 31, 2014: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 70,422 | $ | 162,295 | |||||||||||||
Change in fair value of profit sharing liability: | |||||||||||||||||
Change in preset value of estimate of future operating profits | -16,569 | -110,589 | |||||||||||||||
Change in discount rate | 2,454 | 8,106 | |||||||||||||||
Interest expense - present value discount amortization | 1,220 | 11,544 | |||||||||||||||
Difference between the previously estimated operating results for the current period and actual results | - | -79 | |||||||||||||||
Exchange rate effect | 11 | -855 | |||||||||||||||
Ending balance | $ | 57,538 | $ | 70,422 | |||||||||||||
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 request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. | |||||||||||||||||
Restricted notes receivable represents notes receivable pledged as collateral for short-term loans and short-term notes payable issued by banks. | |||||||||||||||||
Interest expenses for early submission request of payment amounted to $8.0 million and $14.1 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||
(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 classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | |||||||||||||||||
Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service, maintenance, repairs and minor renewals are charged directly to expense as incurred. Major additions and betterment to buildings and equipment are capitalized. Interest incurred during construction is capitalized into construction in progress. All other interest is expensed as incurred. | |||||||||||||||||
Long lived assets, including buildings and improvements, equipment and intangible assets are reviewed if events and changes in circumstances indicate that its carrying amount may not be recoverable, to determine whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | |||||||||||||||||
Due to the recurring losses in the Longmen Joint Venture’s operations, the Company has considered it is a triggering event that Longmen Joint Venture’s carrying amount may not be recoverable, to determine whether its carrying value has become impaired. The Company uses the undiscounted cash flow estimation approach for the purpose of performing a recoverability test which includes future cash inflows less associated cash outflows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the assets. For purposes of assessment, the long lived assets were grouped at the lowest level for which there is identifiable cash flows. The major groupings analyzed include Longmen Joint Venture, Maoming Hengda and General Steel (China). Further, our estimate of future cash flows includes estimated future cash flows necessary to maintain our existing production potential over the entire period and within the various groups. The projections are based on a best estimate approach as opposed to a probability weighted approach based on the likelihood of possible outcomes. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flows method. As of March 31, 2015, the Company expects its long-lived assets to be fully recoverable (see Note 2(f.)). | |||||||||||||||||
(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 March 31, 2015, the Company expects these assets to be fully recoverable. | |||||||||||||||||
Land use rights | |||||||||||||||||
All land in the PRC is owned by the government. However, the government grants “land use rights.” General Steel (China) acquired land use rights in 2001 for a total of $3.9 million (RMB 23.7 million). These land use rights are for 50 years and expire in 2050 and 2053. The Company amortizes the land use rights over the twenty-year business term because its business license had a twenty-year term. | |||||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.2 million (RMB 148.3 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 on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,870 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,187 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,706 | 2054 | ||||||||||||||
Mining right | |||||||||||||||||
Mining rights are capitalized at cost when acquired, including amounts associated with any value beyond proven and probable reserves, and amortized to operations as depletion expense using the units-of-production method over the estimated proven and probable recoverable tons. Longmen Joint Venture has iron ore mining right amounting to $2.4 million (RMB 15.0 million), which is amortized over the estimated recoverable reserve of 4.2 million tons. | |||||||||||||||||
(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 March 31, 2015 and December 31, 2014. | |||||||||||||||||
Unconsolidated entities | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
acquired | Net investment | 2014 | % | ||||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,014 | 24.1 | $ | 1,153 | 24.1 | ||||||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of March 31, 2015 and December 31, 2014. | |||||||||||||||||
Unconsolidated | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
entities | acquired | Net investment | 2014 | % | |||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,691 | 32 | $ | 15,670 | 32 | ||||||||||
Total investment income (loss) in unconsolidated subsidiaries amounted to $(0.04) million and $0.01 million for the three months ended March 31, 2015 and 2014, respectively, which was included in “Income from equity investments” in the condensed consolidated statements of operations and comprehensive loss. | |||||||||||||||||
(m) | Revenue recognition | ||||||||||||||||
Sales is 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 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 obligators, 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 retained in accordance with ASC 605-45. Sales in trading transactions, which were netted against corresponding cost of goods sold, amounted to $107.7 million and $38.2 million for the three months ended March 31, 2015 and 2014, respectively. The net amount in gross loss amounted to $64,994 and $288,513 during the respective periods. | |||||||||||||||||
(n) | Recently issued accounting pronouncements | ||||||||||||||||
In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Amendments to the Consolidation Analysis. Under both current GAAP requirements and the amendments in this update, a decision maker is determined to be the primary beneficiary of a VIE if it satisfies both the power and the economics criteria. The primary beneficiary consolidates a VIE because it has a controlling financial interest. Under the requirements in current GAAP, if a fee arrangement paid to a decision maker, such as an asset management fee, is determined to be a variable interest in a VIE, the decision maker must include the fee arrangement in its primary beneficiary determination and could consolidate the VIE on the basis of power (decision-making authority) and economics (the fee arrangement). However, the amendments in this Update specify that some fees paid to a decision maker are excluded from the evaluation of the economics criterion if the fees are both customary and commensurate with the level of effort required for the services provided. Those amendments make it less likely for a decision maker to meet the economics criterion solely on the basis of a fee arrangement. The amendments in this update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. Management is evaluating the impact that will arise from these Amendments. | |||||||||||||||||
In April 2015, the FASB issued authoritative guidance on accounting for Interest-Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, without changing existing recognition and measurement guidance for debt issuance costs. The new guidance is required to be applied on a retrospective basis and to be accounted for as a change in an accounting principle. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years and early adoption of the amendments in this update is permitted. The Company will apply early adoption of this standard in the second quarter of 2015. The implementation of this standard will result in the reclassification of certain debt issuance costs from deferred financing cost to a reduction in the carrying amount of the related debt liability within the Company’s consolidated balance sheets. | |||||||||||||||||
Loans_receivable
Loans receivable | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | ||||||||
Loans Receivable Related Parties Disclosure [Text Block] | Note 3 – Loans receivable | |||||||
Loans receivable, including to related parties represent amounts the Company expects to collect from unrelated and related parties upon maturity. | ||||||||
The Company had the following loan receivable due within one year as of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to unrelated party; due on demand; interest rate is 8.0%. | $ | 42,569 | $ | 36,001 | ||||
The Company has the following loans receivable – related parties due within one year as of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to Tianjin Hengying Trading Co., Ltd.; due on demand; interest rate is 10.0%. | $ | 622 | $ | 13,997 | ||||
Loan to Tianjin Dazhan Industry Co., Ltd.; due on demand; interest rate is 10.0%. | - | 14,617 | ||||||
Loan to Beijing Shenghua Xinyuan Metal Materials Co., Ltd.; due on demand; interest rate is 10.0%. | 6,106 | 6,099 | ||||||
Total loans receivable – related parties | $ | 6,728 | $ | 34,713 | ||||
See Note 19 “Related party transactions and balances” for the nature of the relationship of related parties. | ||||||||
Total interest income for the loans amounted to $0.5 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Accounts_receivable_including_
Accounts receivable (including related parties), net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 11,194 | $ | 9,804 | ||||
Less: allowance for doubtful accounts | -508 | -483 | ||||||
Accounts receivable – related parties | 59,183 | 8,624 | ||||||
Less: allowance for doubtful accounts – related parties | -126 | -126 | ||||||
Net accounts receivable | $ | 69,743 | $ | 17,819 | ||||
Movement of allowance for doubtful accounts is as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 609 | $ | 1,053 | ||||
Charge to expense | 25 | 368 | ||||||
Less: recovery | - | -8 | ||||||
Deconsolidation of Baotou Steel | - | -798 | ||||||
Exchange rate effect | - | -6 | ||||||
Ending balance | $ | 634 | $ | 609 | ||||
Other_receivables_including_re
Other receivables (including related parties), net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Receivables [Abstract] | ||||||||
Financing Receivables [Text Block] | Note 5 – Other receivables (including related parties), net | |||||||
Other receivables, including related party receivables, net of allowance for doubtful accounts consists of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Other receivables | $ | 114,761 | $ | 73,944 | ||||
Less: allowance for doubtful accounts | -11,470 | -10,198 | ||||||
Other receivables – related parties | 23,143 | 39,734 | ||||||
Less: allowance for doubtful accounts – related parties | -64 | -64 | ||||||
Net other receivables | $ | 126,370 | $ | 103,416 | ||||
Movement of allowance for doubtful accounts, including related parties, is as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 10,262 | $ | 2,606 | ||||
Charge to expense | 1,260 | 7,670 | ||||||
Less: recovery | -5 | -6 | ||||||
Exchange rate effect | 17 | -8 | ||||||
Ending balance | $ | 11,534 | $ | 10,262 | ||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | Note 6 – Inventories | |||||||
Inventories consist of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 17,327 | $ | 18,838 | ||||
Raw materials | 100,509 | 143,563 | ||||||
Finished goods | 43,086 | 12,301 | ||||||
Less: allowance for inventory valuation | -12,627 | -18,375 | ||||||
Total inventories | $ | 148,295 | $ | 156,327 | ||||
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 March 31, 2015 and December 31, 2014, the Company had provided allowance for inventory valuation in the amounts of $12.6 million and $18.4 million, respectively. | ||||||||
Movement of allowance for inventory valuation is as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 18, 375 | $ | 15,397 | ||||
Addition | 12,581 | 18,362 | ||||||
Less: write-off | -18,329 | -15,311 | ||||||
Exchange rate effect | - | -73 | ||||||
Ending balance | $ | 12,627 | $ | 18,375 | ||||
Advances_on_inventory_purchase
Advances on inventory purchases | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Advances On Inventory Purchase [Text Block] | Note 7 – Advances on inventory purchases | |||||||
Advances on inventory purchases, including related party, net of allowance for doubtful accounts consists of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Advances on inventory purchases | $ | 51,944 | $ | 76,320 | ||||
Less: allowance for doubtful accounts | -2,504 | -2,501 | ||||||
Advances on inventory purchases – related parties | 95,757 | 45,617 | ||||||
Net advances on inventory purchases | $ | 145,197 | $ | 119,436 | ||||
Movement of allowance for doubtful accounts, including related parties, is as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 2,501 | $ | 105 | ||||
Charge to expense | - | 2,395 | ||||||
Exchange rate effect | 3 | 1 | ||||||
Ending balance | $ | 2,504 | $ | 2,501 | ||||
Plant_and_equipment_net
Plant and equipment, net | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 8 – Plant and equipment, net | |||||||||
Plant and equipment consist of the following: | ||||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Buildings and improvements | $ | 437,477 | $ | 279,776 | ||||||
Machinery | 887,292 | 669,427 | ||||||||
Machinery under capital lease | 627,505 | 626,735 | ||||||||
Transportation and other equipment | 23,101 | 22,765 | ||||||||
Construction in progress | 9,835 | 342,660 | ||||||||
Subtotal | 1,985,210 | 1,941,363 | ||||||||
Less: accumulated depreciation | -423,699 | -398,227 | ||||||||
Total | $ | 1,561,511 | $ | 1,543,136 | ||||||
Construction in progress consisted of the following as of March 31, 2015: | ||||||||||
Construction in progress | Value | Completion | Estimated | |||||||
additional cost to | ||||||||||
complete | ||||||||||
description | (In thousands) | date | (In thousands) | |||||||
Restructuring of ventilation system | 2 | Dec-15 | 979 | |||||||
Energy management system | 326 | Apr-15 | 1,925 | |||||||
Reconstruction of miscellaneous factory buildings | 6,959 | Dec-15 | 7,023 | |||||||
Project materials | 2,145 | - | ||||||||
Others | 403 | - | ||||||||
Total | $ | 9,835 | $ | 9,927 | ||||||
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, 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: | ||||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 627,505 | $ | 626,735 | ||||||
Less: accumulated depreciation | -116,075 | -107,782 | ||||||||
Carrying value of leased assets | $ | 511,430 | $ | 518,953 | ||||||
The Company assessed the recoverability of all of its remaining long lived assets at March 31, 2015 and December 31, 2014, respectively, and such assessment did not result in any impairment charges. | ||||||||||
Depreciation expense for the three months ended March 31, 2015 and 2014 amounted to $24.9 million and $24.1 million, respectively. These amounts include depreciation of assets held under capital leases for the three months ended March 31, 2015 and 2014, which amounted to $8.1 million and $7.9 million, respectively (See Notes 2(j.) and 2(f.)). | ||||||||||
Intangible_assets_net
Intangible assets, net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Intangible Assets Disclosure [Text Block] | Note 9 – Intangible assets, net | |||||||
Intangible assets consist of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,763 | $ | 30,726 | ||||
Mining right | 2,450 | 2,447 | ||||||
Software | 1,059 | 1,058 | ||||||
Subtotal | 34,272 | 34,231 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -9,308 | -9,127 | ||||||
Accumulated amortization – mining right | -1,339 | -1,431 | ||||||
Accumulated amortization – software | -740 | -713 | ||||||
Subtotal | -11,387 | -11,271 | ||||||
Intangible assets, net | $ | 22,885 | $ | 22,960 | ||||
The gross amount of the intangible assets amounted to $34.3 million and $34.2 million as of March 31, 2015 and December 31, 2014, respectively. The remaining weighted average amortization period is 32.5 years as of March 31, 2015. | ||||||||
Total amortization expense for the three months ended March 31, 2015 and 2014 amounted to $0.2 million and $0.2 million, respectively. | ||||||||
Total depletion expense for the three months ended March 31, 2015 and 2014 amounted to $0.04 million and $0.01 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) | |||||||
31-Mar-16 | $ | 946 | 21,939 | |||||
31-Mar-17 | 946 | 20,993 | ||||||
31-Mar-18 | 946 | 20,047 | ||||||
31-Mar-19 | 946 | 19,101 | ||||||
31-Mar-20 | 946 | 18,155 | ||||||
Thereafter | 18,155 | - | ||||||
Total | $ | 22,885 | ||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | Note 10 – 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 $222.2 million and $339.4 million as of March 31, 2015 and December 31, 2014, respectively. Restricted notes receivable as a guarantee for the notes payable amounted to $1.6 million and $0 as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
The Company had the following short-term notes payable as of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due June 2015. Restricted cash required of $8.2 million and $14.7 million as of March 31, 2015 and December 31, 2014, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 16,310 | $ | 22,806 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from May to October 2015. $214.0 million restricted cash and $1.6 million notes receivable are secured for notes payable as of March 31, 2015, and comparatively $324.7 million restricted cash and $0 notes receivable are secured for notes payable as of December 31, 2014, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 432,052 | 638,829 | ||||||
Total short-term notes payable | $ | 448,362 | $ | 661,635 | ||||
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 | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from June 2015 to January 2016. Weighted average interest rate was 7.3% per annum and 7.2% per annum as of March 31, 2015 and December 31, 2014, respectively; some are guaranteed by third parties. These loans were either repaid or renewed subsequently on the due dates. | $ | 40,612 | $ | 40,562 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from May to November 2015. Weighted average interest rate was 7.8% per annum and 7.1% per annum as of March 31, 2015 and December 31, 2014, respectively; some are guaranteed by third parties, $27.3 million restricted cash and $66.2 notes receivable and comparatively $16.3 million restricted cash and $111.8 notes receivable were secured for the loans as of March 31, 2015 and December 31, 2014, respectively; These loans were either repaid or renewed subsequently on the due dates. | 191,536 | 216,940 | ||||||
Total short-term loans - bank | $ | 232,148 | $ | 257,502 | ||||
As of March 31, 2015 and December 31, 2014, the Company had not met its financial covenants stipulated by certain loan agreements related to the Company’s debt to asset ratio. Two of General Steel (China)’s bank loans contained financial covenants stipulating debt to asset ratios below 70%. At March 31, 2015, General Steel (China)’s debt to asset ratio was 94.0%. At December 31, 2014, General Steel (China)’s debt to asset ratio was 90.8%. | ||||||||
Furthermore, the Company is a party to a loan agreement with a cross default clause whereby any breach of loan covenants will automatically result in default of the loan. The outstanding balance of the short term loans affected by the above breach of covenants and cross default as of March 31, 2015 and December 31, 2014 was $4.7 million and $4.7 million, respectively. According to the Company’s short term loan agreements, the banks have the rights to request for more collateral or additional guarantees if the breach of covenant is not remedied or request early repayment of the loan if the Company does not cure such breach within a certain period of time. As of the date of this report, the Company has not received any notice from the banks to request more collateral, additional guarantees or early repayment of the short term loans due to the breach of covenant. | ||||||||
Due to unrelated parties | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from May to September 2015, and weighted average interest rate was 10.2% per annum and 5.7% per annum as of March 31, 2015 and December 31, 2014, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 37,337 | $ | 16,999 | ||||
Longmen Joint Venture: Loans from financing sales. | 8,458 | 37,525 | ||||||
Maoming Hengda: Loans from one unrelated parties and one related party, due on demand, none interest bearing. | 6,200 | 6,193 | ||||||
Total short-term loans – others | $ | 51,995 | $ | 60,717 | ||||
The Company had various loans from unrelated companies amounting to $52.0 million and $60.7 million as of March 31, 2015 and December 31, 2014, respectively. Of the $52.0 million, $6.2 million loans carry no interest, $8.5 million of financing sales are subject to interest rates ranging between 4.6% and 12.0%, and the remaining $37.3 million are subject to interest rates ranging from 5.0% to 24.0%. All short term loans from unrelated companies are payable on demand and unsecured. | ||||||||
As part of its working capital management, Longmen Joint Venture has entered into a number of sale and purchase back contracts ("contracts") with third party companies and Yuxin and Yuteng. According to the contracts, Longmen Joint Venture sells rebar to the third party companies at a certain price, and within the same month, Yuxin and Yuteng will purchase back the rebar from the third party companies at a price of 4.6% to 12.0% 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 12.0% 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 March 31, 2015 and 2014 amounted to $118.4 million and $230.5 million, respectively, which are eliminated in the Company’s consolidated financial statements. The financial cost related to financing sales for the three months ended March 31, 2015 and 2014 amounted to $0.7 million and $0.9 million, respectively. | ||||||||
Short term loans due to related parties | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rates is 10% per annum. | $ | 670 | $ | 670 | ||||
General Steel China: Loans from Tianjin Dazhan Industry Co., Ltd, due on demand, and interest rates is 10% per annum. | 7,174 | - | ||||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due on demand, and interest rate is 7.0% per annum. | 128 | 128 | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group due on December 2015, and interest rate is 6.9% and 8.0% per annum. The Company repaid $9,489 subsequent to March 31, 2015. | 91,173 | - | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group Hanzhong Steel Co., Ltd. due on April 2015, and interest rate is 8.0% per annum. Full balance becomes due on demand in April 2015. | 8,155 | - | ||||||
Longmen Joint Venture: Loan from Long Steel Group due on April 2015, and interest rate is 12.0% per annum. The Company repaid $4,924 subsequent to March 31, 2015. Remaining balance becomes due on demand. | 8,155 | - | ||||||
Longmen Joint Venture: Loan from Tianjin General Qiugang Pipe Co., Ltd due on September 2015, and interest rate is 5.4% per annum. | 3,262 | - | ||||||
Longmen Joint Venture: Loans from financing sales. | 98,680 | 45,582 | ||||||
Total short-term loans - related parties | $ | 217,397 | $ | 46,380 | ||||
Long-term loans due to related party | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due on various dates through March 2018 and interest rate are 5.6% - 8.0% per annum. | $ | 352,850 | $ | 339,549 | ||||
As of March 31, 2015 and December 31, 2014, total assets used by the Company as collateral for the aforementioned debts were $110.1 million and $96.9 million, respectively. | ||||||||
Total interest expense, net of capitalized interest, amounted to $7.4 million and $9.5 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Capitalized interest amounted to $0 and $0.6 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Customer_deposits
Customer deposits | 3 Months Ended |
Mar. 31, 2015 | |
Deposits [Abstract] | |
Customer Deposits Disclosure [Text Block] | Note 11 – 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 March 31, 2015 and December 31 2014, customer deposits amounted to $287.3 million and $225.6 million, respectively, including deposits received from related parties, which amounted to $148.2 million and $132.6 million, respectively. | |
Deposits_due_to_sales_represen
Deposits due to sales representatives | 3 Months Ended |
Mar. 31, 2015 | |
Deposits Due To Sales Representatives [Abstract] | |
Deposits Due To Sales Representatives [Text Block] | Note 12 – 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 $21.9 million and $20.4 million in deposits due to sales representatives, including deposits due to related parties, as of March 31, 2015 and December 31, 2014, respectively. | |
Supplemental_disclosure_of_cas
Supplemental disclosure of cash flow information | 3 Months Ended |
Mar. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Supplemental Disclosures [Text Block] | Note 13 - Supplemental disclosure of cash flow information |
Interest paid, net of capitalized, amounted to $2.6 million and $5.7 million for the three months ended March 31, 2015 and 2014, respectively. | |
The Company paid income tax amounted to $0.1 million and $0.01 million for the three months ended March 31, 2015 and 2014, respectively. | |
During the three months ended March 31, 2015 and 2014, the Company converted $0.03 million and $0.05 million of equipment into inventory productions, respectively. | |
During the three months ended March 31, 2015 and 2014, the Company used $0.9 million $1.0 million inventory, respectively, in plant and equipment constructions. | |
During the three months ended March 31, 2015 and 2014, the Company incurred $2.8 million and $23.4 million accounts payable, respectively, to be paid for the purchase of equipment and construction in progress. | |
The Company had $23.8 million notes receivable from financing sales loans to be converted to cash as of March 31, 2015. | |
The Company reclassified $5.9 million purchase deposits - related parties that carried interest to loan receivable - related parties as of March 31, 2015. | |
The Company had $47.7 million notes receivable from financing sales loans to be converted to cash as of March 31, 2014. | |
During the three months ended March 31, 2014, the Company had receivables of $0.01 million as a result of the disposal of equipment that has not been collected. | |
During the three months ended March 31, 2014, one of the Company’s unconsolidated entities declared dividend and the Company was entitled for the dividend amounted to $0.2 million, which was not yet collected. | |
Deferred_lease_income
Deferred lease income | 3 Months Ended |
Mar. 31, 2015 | |
Deferred Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | Note 14 - Deferred lease income |
To compensate the Company for costs and economic losses incurred during construction of the iron and steel making facilities owned by Shaanxi Steel, Shaanxi Steel reimbursed Longmen Joint Venture $11.4 million (RMB 70.1 million) in the fourth quarter of 2010 for the value of assets dismantled and rent under a 40-year property sub-lease that was entered into by the parties in June 2009 (the "Longmen Sub-lease"), and $29.9 million (RMB 183.1 million) for the reduced production efficiency caused by the construction. In addition, in 2010 and 2011, Shaanxi Steel reimbursed Longmen Joint Venture $14.6 million (RMB 89.5 million) and $14.6 million (RMB 89.3 million), respectively, for trial production costs related to the new equipment. | |
During the period from June 2010 to March 2011, as construction progressed and certain of the assets came online, Longmen Joint Venture used the assets free of charge to produce saleable units of steel products during this period. As such, the cost of using these assets and therefore the fair value of the free rent received was imputed with reference to what the depreciation charge would have been on these assets had they been owned or under capital lease to Longmen Joint Venture during the free use period. This cost of $7.2 million (RMB 43.9 million) each year were deferred and will be recognized over the term of the land sub-lease similar to the other charges and credits related to the construction of these assets. | |
The deferred lease income is amortized to income over the remaining term of the 40-year land sub-lease. For the three months ended March 31, 2015 and 2014, the Company recognized $0.5 million and $0.5 million, respectively. As of March 31, 2015 and December 31, 2014, the balance of deferred lease income amounted to $74.4 million and $74.9 million, respectively, of which $2.2 million and $2.2 million represents balance to be amortized within one year. See Note 19 – Related party transactions and balances (k) – Deferred lease income for details. | |
Capital_lease_obligations
Capital lease obligations | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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 based on Shaanxi Steel’s cost to construct the assets of $2.3 million (RMB 14.6 million) to be paid over the term of the Unified Management Agreement of 20 years and (2) 40% of any remaining pre-tax profits from the Asset Pool which includes Longmen Joint Venture and the newly constructed iron and steel making facilities. In February 2014, Shaanxi Steel agreed that it will not demand capital lease payment 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 is therefore considered part of the financing for the capital leased assets which is related to the Unified Management Agreement. For purposes of determining the value of the leased asset and obligation at the inception of the lease, the lease liability is then reduced by the value of the profit sharing component, which is recognized as a derivative liability, which is carried at fair value. See 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. As of March 31, 2015, $23.9 million (RMB $146.5 million) energy-saving equipment under these lease agreements have been capitalized and no contingent rent expense has been incurred. | |||||
Presented below is a schedule of estimated minimum lease payments on the capital lease obligation for the next five years as of March 31, 2015: | |||||
Year ending March 31, | Capital Lease Obligations | ||||
Minimum Lease Payments | |||||
(in thousands) | |||||
2016 | $ | 10,665 | |||
2017 | 175,427 | ||||
2018 | 33,657 | ||||
2019 | 30,685 | ||||
2020 | 29,621 | ||||
Thereafter | 317,780 | ||||
Total minimum lease payments | 597,835 | ||||
Less: amounts representing interest | -191,741 | ||||
Ending balance | $ | 406,094 | |||
Interest expense for the three months ended March 31, 2015 and 2014 on the capital lease obligations was $5.2 million and $5.4 million, respectively. | |||||
Profit_sharing_liability
Profit sharing liability | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
Other_income_expense
Other income (expense) | 3 Months Ended |
Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Note 17 – Other income (expense) |
Lease income | |
The deferred lease income from the reimbursement from Shaanxi Steel for the net book value of the fixed assets that were demolished and for the inefficiency costs caused by the construction and loss incurred in the beginning stages of the system production is amortized to income over the remaining sub-lease term. For the three months ended March 31, 2015 and 2014, the Company recognized lease income of $0.5 million and $0.5 million, respectively. | |
Taxes
Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | Note 18 – Taxes | |||||||
Income tax | ||||||||
Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended March 31, 2015 and 2014 are as follows: | ||||||||
(In thousands) | The three months ended | The three months ended | ||||||
March 31, 2015 | March 31, 2014 | |||||||
Current | $ | 30 | $ | 5 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 30 | $ | 5 | ||||
Under the Income Tax Laws of the PRC, General Steel (China) and Maoming Hengda (located in Guangdong province) are subject to income tax at a rate of 25%. | ||||||||
Longmen Joint Venture is located in the Mid-West region of China and as such, qualifies for the “Go-West” tax rate of 15% promulgated by the government. In 2010, the Chinese government announced that the “Go-West” tax initiative would be extended for 10 years, and thus, the preferential tax rate of 15% will be in effect until 2020. This special tax treatment for Longmen Joint Venture will be evaluated on a year-to-year basis by the local tax bureau. | ||||||||
Deferred taxes assets – China | ||||||||
According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for the next five years. The Group’s losses carried forward of $665.9 million will begin to expire in 2016. The Chinese government recently announced several policies to curb the real estate price increases across the country which led to a slowdown in demand for construction steel products. Additionally due to the continued global economic slowdown and the overcapacity issues in China's steel market, management expected there would be a sustained increase in margin pressure in the next five years until all the existing but outdated steel capacity across the whole industry are eliminated. Management took into consideration this potential negative impact on average selling price and gross margin of its products, re-performed an operating forecast for the next five years and concluded that the beginning-of-the-year balance of deferred tax assets mainly relating to the net operating loss carry forward may not be fully realizable due to the reduction in the projection of income to be available in the next 5 years. Management therefore decided to provide 100% valuation allowance for the deferred tax assets. The valuation allowance as of March 31, 2015 and December 31, 2014 was $123.7 million and $114.8 million, respectively. Management will review this valuation allowance periodically and make adjustments as warranted. Temporary differences represent tax and book differences in various items, such as receivable allowances, inventory allowances, impairments on fixed assets and deferred lease income. | ||||||||
Movement of valuation allowance: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 114,820 | $ | 97,569 | ||||
Current period addition | 10,040 | 18,951 | ||||||
Current period reversal | -1,317 | -614 | ||||||
Deconsolidation of Baotou Steel | - | -625 | ||||||
Exchange difference | 173 | -461 | ||||||
Ending balance | $ | 123,716 | $ | 114,820 | ||||
Deferred taxes assets – U.S. | ||||||||
General Steel Holdings, Inc. was incorporated in the United States and has incurred net operating losses for income tax purposes for the three months ended March 31, 2015. The net operating loss carry forwards for United States income taxes amounted to $3.2 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2027 through 2034. 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 March 31, 2015 was $1.1 million. The net change in the valuation allowance for the three months ended March 31, 2015 was $0. 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 March 31, 2015. 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 March 31, 2015 and December 31, 2014, the Company had $2.0 million and $3.2 million in value added tax credit which are available to offset future VAT payables, respectively. | ||||||||
Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government for VAT collection. VAT on sales and VAT on purchases amounted to $139.1 million and $132.2 million, respectively, for the three months ended March 31, 2015 and $152.9 million and $151.9 million, respectively, for the three months ended March 31, 2014. | ||||||||
Taxes payable consisted of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 6,847 | $ | 3,147 | ||||
Income taxes payable | 209 | 243 | ||||||
Misc. taxes | 2,337 | 1,811 | ||||||
Totals | $ | 9,393 | $ | 5,201 | ||||
Related_party_transactions_and
Related party transactions and balances | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Related Party Transactions [Abstract] | ||||||||||
Related Party Transactions Disclosure [Text Block] | Note 19 – Related party transactions and balances | |||||||||
Related party transactions | ||||||||||
a. | Capital lease | |||||||||
As disclosed in Notes 15 – “Capital lease obligations”, Longmen Joint Venture entered into a capital lease arrangement on April 29, 2011, with Shaanxi Coal and Shaanxi Steel, which are related parties of the Group. The following is an analysis of the leased assets under the capital lease: | ||||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 603,618 | $ | 602,878 | ||||||
Less: accumulated depreciation | -112,298 | -105,001 | ||||||||
Carrying value of leased assets | $ | 491,320 | $ | 497,877 | ||||||
b. The following chart summarized sales to related parties for the three months ended March 31, 2015 and 2014. | ||||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
March 31, 2015 | March 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 11,270 | $ | 44,800 | |||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group* | 9,578 | 15 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 15,998 | 20,736 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 481 | 471 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 20,068 | 4,969 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 6,618 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 4,597 | |||||||
Total | $ | 57,395 | $ | 82,206 | ||||||
Sales to related parties in trading transactions, which were netted against the corresponding cost of goods sold, amounted to $91.0 million and $33.3 million for the three months ended March 31, 2015 and 2014, respectively. See Note 2(m) Revenue Recognition for details. | ||||||||||
*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. | ||||||||||
c. The following charts summarize purchases from related parties for the three months ended March 31, 2015 and 2014. | ||||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
March 31, 2015 | March 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 5,993 | $ | 151,772 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 48,147 | 44,088 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 1,072 | 904 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 1,505 | - | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 5,960 | 6,660 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 36,174 | 23,339 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding** | 3,287 | 4,275 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 27,919 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 331 | 47 | |||||||
Total | $ | 102,469 | $ | 259,004 | ||||||
**The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | ||||||||||
Related party balances | ||||||||||
a. | Loans receivable – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co., Ltd.* | Partially owned by CEO through indirect shareholding | $ | 622 | $ | 13,997 | |||||
Tianjin Dazhan Industry Co., Ltd.* | Partially owned by CEO through indirect shareholding | - | 14,617 | |||||||
Beijing Shenghua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 6,106 | 6,099 | |||||||
Total | $ | 6,728 | $ | 34,713 | ||||||
*The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. | ||||||||||
The Company issued loans to these related parties for cash flow purposes to earn interest income, which have a higher interest rate than the bank financing interest rates. | ||||||||||
See Note 3 – loans receivable – related parties for loan details. | ||||||||||
b. | Accounts receivables – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 151 | $ | 148 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 56,982 | - | |||||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 5,715 | |||||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 19 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 2,031 | 2,101 | |||||||
Others | - | 641 | ||||||||
Total | $ | 59,183 | $ | 8,624 | ||||||
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 | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,219 | $ | 165 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,141 | 35,669 | |||||||
Tianjin General Quigang Pipe Co., Ltd* | Partially owned by CEO through indirect shareholding | 17,939 | 1,237 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 927 | 721 | |||||||
Beijing Shenghua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 466 | 313 | |||||||
Victory Energy Resource Co., Ltd. | Partially owned by CEO through indirect shareholding | 1,101 | 1,101 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 350 | 528 | |||||||
Total | $ | 23,143 | $ | 39,734 | ||||||
* Full balance has been repaid subsequently to March 31, 2015 by this entity. | ||||||||||
d. | Advances on inventory purchase – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 7,269 | $ | 7,139 | |||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 27,549 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 3,873 | 3,807 | |||||||
Tianjin General Qiugang Pipe Co., Ltd* | Partially owned by CEO through indirect shareholding | 84,547 | 7,091 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 68 | 31 | |||||||
Total | $ | 95,757 | $ | 45,617 | ||||||
*During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit – related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Company’s trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Company’s trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | ||||||||||
e. | Accounts payable - related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 77,617 | $ | 64,276 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 94,006 | 79,886 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 14,828 | 23,726 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 870 | 869 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 10,829 | 11,035 | |||||||
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 | 1,002 | 746 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 28 | 36 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | - | 2,462 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 7,986 | 22,916 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 4,274 | 1,773 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 683 | - | |||||||
Shaanxi Shenganda Trading Co, Ltd. | Significant influence by Long Steel Group | 14,834 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 7 | 57 | |||||||
Total | $ | 226,964 | $ | 207,783 | ||||||
f. | Short-term loans - related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel Group Hanzhong Steel Co., Ltd. | Subsidiary of Shaanxi Steel | $ | 8,155 | $ | - | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 91,173 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 68,754 | 34,460 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 30,533 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 7,610 | 3,039 | |||||||
Tianjin General Quigang Pipe Co., Ltd. | Partially owned by CEO through indirect shareholding | 3,262 | ||||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 7,240 | 8,211 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 670 | 670 | |||||||
Total | $ | 217,397 | $ | 46,380 | ||||||
See Note 9 – Debt for the loan details. | ||||||||||
g. | 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 | March 31, | December 31, | |||||||
2015 | 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 378 | $ | 378 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 28,277 | 33,968 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 27,745 | 44,146 | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 1,180 | 1,196 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 416 | 399 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 3,750 | 3,883 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 157 | 2,775 | |||||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | 13,350 | - | |||||||
Teamlink Investment Co., Ltd | Partially owned by CEO through indirect shareholding | 20,500 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 524 | 507 | |||||||
Total | $ | 96,277 | $ | 87,252 | ||||||
h. | Customer deposits – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(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 | 7,414 | 4,467 | |||||||
Shaanxi Haiyan Trade Co, Ltd | Significant influence by Long Steel Group | 5,391 | 6,844 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 28,863 | 23,517 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 16 | 57 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 1,960 | - | |||||||
Tianwu General Steel Material Trading Co., Ltd.* | Investee of General Steel (China) | 104,522 | 97,721 | |||||||
Total | $ | 148,176 | $ | 132,616 | ||||||
*This entity is one of the Company’s trading partners and sells or purchases the steel related products to or from the Company. During three months ended March 31, 2015 and 2014, the Company received $6.7 million and $71.8 million of deposits from this entity, of which, no trading sales transactions were utilized. During the year ended December, 31 2014 and the first quarter of 2015, the Company received a total deposits of RMB 600 million (approximately $104.0 million) from this entity. The deposits are refundable. | ||||||||||
i. | Deposits due to sales representatives – related parties | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | $ | 652 | $ | 652 | |||||
Gansu Yulong Trading Co., Ltd. | Significant influence by Long Steel Group | 1,076 | 1,075 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 196 | 196 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 587 | 586 | |||||||
Shaanxi Junlong Rolling Co., Ltd. | Investee of Long Steel Group | 42 | - | |||||||
Total | $ | 2,553 | $ | 2,509 | ||||||
j. | Long-term loans – related party: | |||||||||
Name of related party | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 352,850 | $ | 339,549 | |||||
Total | $ | 352,850 | $ | 339,549 | ||||||
The Company also provided guarantee on related parties’ bank loans amounting to $49.0 million and $82.3 million as of March 31, 2015 and as of December 31, 2014, respectively. | ||||||||||
k. | Deferred lease income | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 74,889 | $ | 77,444 | ||||||
Less: Lease income realized | -544 | -2,176 | ||||||||
Exchange rate effect | 92 | -379 | ||||||||
Ending balance | 74,437 | 74,889 | ||||||||
Current portion | -2,179 | -2,176 | ||||||||
Noncurrent portion | $ | 72,258 | $ | 72,713 | ||||||
For the three months ended March 31, 2015 and 2014, the Company realized lease income from Shaanxi Steel, a related party, amounted to $0.5 million and $0.5 million, respectively. | ||||||||||
Retirement_plan
Retirement plan | 3 Months Ended |
Mar. 31, 2015 | |
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 March 31, 2015 and 2014 amounted to $2.8 million and $2.8 million, respectively. | |
Statutory_reserves
Statutory reserves | 3 Months Ended |
Mar. 31, 2015 | |
Statutory Reserves [Abstract] | |
Statutory Reserves [Text Block] | Note 21 – Statutory reserves |
The laws and regulations of the People’s Republic of China require that before a foreign -invested enterprise distributes profits to its shareholders, it must first satisfy all tax liabilities, provision for losses in previous years, and make allocations, in proportions determined at the discretion of the board of directors, to the statutory reserves. The statutory reserves include the surplus reserve funds and the enterprise fund and these statutory reserves represent restricted retained earnings. | |
Surplus reserve fund | |
The Company is required to transfer 10% of its net income, as determined in accordance with the PRC accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the Company’s registered capital. | |
The transfer to this reserve must be made before distribution of any dividend to shareholders. The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. For the three months ended March 31, 2015 and 2014, the Company did not make any contributions to these reserves. | |
Special reserve | |
The Company is required by the PRC government to reserve safety and maintenance expense to the cost of production based on the actual quantity of mineral exploited. The amount of reserves is determined within the unit price range provided by Ministry of Finance of PRC. For the three months ended March 31, 2015 and 2014, the Company made contributions of $0.2 million and $0.3 million to these reserves, respectively and used $0.04 million and $0.1 million of safety and maintenance expense, respectively. | |
Commitment_and_contingencies
Commitment and contingencies | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Commitments and Contingencies Disclosure [Text Block] | Note 22 – 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 March 31, 2015 is as follows: | |||||||
Year ending March 31, | Minimum lease payment | ||||||
(in thousands) | |||||||
2016 | $ | 2,126 | |||||
2017 | 1,946 | ||||||
2018 | 1,885 | ||||||
2019 | 1,206 | ||||||
2020 | 1,206 | ||||||
Years after | 40,152 | ||||||
Total minimum payments required | $ | 48,521 | |||||
Total rental expense was $0.1 million and $0.9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||
Contractual Commitments | |||||||
Longmen Joint Venture has $9.9 million contractual obligations related to construction projects as of March 31, 2015 estimated to be fulfilled between April and December 2015. | |||||||
Contingencies | |||||||
As of March 31, 2015, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $55.4 million. | |||||||
Nature of guarantee | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Line of credit | $ | 52,274 | Various from April 2015 to August 2017 | ||||
Financing by the rights of goods delivery in future | 3,099 | Jun-15 | |||||
Total | $ | 55,373 | |||||
Name of parties being guaranteed | Guarantee amount | Guaranty Due Date | |||||
(In thousands) | |||||||
Long Steel Group | $ | 19,654 | Various from April to September 2015 | ||||
Shaanxi Haiyan Coke Group Co., Ltd. | 13,048 | Sep-15 | |||||
Long Steel Group Fuping Rolling Steel Co., Ltd | 3,099 | Jun-15 | |||||
Xi’an Laisheng Logistics Co., Ltd | 3,262 | May-15 | |||||
Gansu Yulong Trading Co., Ltd | 16,310 | Aug-17 | |||||
Total | $ | 55,373 | |||||
As of March 31, 2015, the Company did not accrue any liability for the amounts the Group has guaranteed for third and related parties because those parties are current in their payment obligations and the Company has not experienced any losses from providing guarantees. The Company has evaluated the debt guarantees and concluded that the likelihood of having to make payments under the guarantees is remote and that the fair value of the stand-ready obligation under these commitments is not material. | |||||||
Segments
Segments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Reporting Disclosure [Text Block] | Note 23 – 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) & General Shengyuan in Tianjin City. | ||||||||
The Group operates in two business segments, one consisting of General Shengyuan and one consisting of three different divisions including Longmen Joint Venture, Maoming Hengda and General Steel (China). These reportable divisions are consistent with the way the Company manages its business, each division operates under separate management groups and produces discrete financial information. The accounting principles applied at the operating division level in determining income from operations is generally the same as those applied at the consolidated financial statement level. | ||||||||
The following represents results of division operations for three months ended March 31, 2015 and 2014: | ||||||||
(In thousands) | ||||||||
Sales: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 328,158 | $ | 594,014 | ||||
Maoming Hengda | 6 | 36 | ||||||
Baotou Steel Pipe Joint Venture | - | 162 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | - | 53 | ||||||
Total sales | 328,164 | 594,265 | ||||||
Interdivision sales | - | -54 | ||||||
Consolidated sales | $ | 328,164 | $ | 594,211 | ||||
Gross profit (loss): | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -32,147 | $ | -22,219 | ||||
Maoming Hengda | - | 24 | ||||||
Baotou Steel | - | -23 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | - | -343 | ||||||
Total gross loss | -32,147 | -22,561 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross loss | $ | -32,147 | $ | -22,561 | ||||
Income (loss) from operations: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -53,498 | $ | -39,294 | ||||
Maoming Hengda | -561 | -522 | ||||||
Baotou Steel | - | -44 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | -734 | -2,566 | ||||||
Total loss from operations | -54,793 | -42,426 | ||||||
Reconciling item (1) | -919 | -1,237 | ||||||
Consolidated loss from operations | $ | -55,712 | $ | -43,663 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -42,405 | $ | -38,034 | ||||
Maoming Hengda | -666 | -537 | ||||||
Baotou Steel | - | -35 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | -1,163 | -3,843 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -44,234 | -42,449 | ||||||
Reconciling item (1) | -919 | -1,115 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -45,153 | $ | -43,564 | ||||
Depreciation, amortization and depletion: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 24,186 | $ | 23,530 | ||||
Maoming Hengda | 310 | 304 | ||||||
Baotou Steel | - | 62 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 668 | 450 | ||||||
Consolidated depreciation, amortization and depletion | $ | 25,164 | $ | 24,346 | ||||
Finance/interest expenses: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 19,148 | $ | 26,990 | ||||
Maoming Hengda | - | - | ||||||
Baotou Steel | - | 1 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 1,421 | 1,609 | ||||||
Reconciling item (1) | 1 | 95 | ||||||
Consolidated interest expenses | $ | 20,570 | $ | 28,695 | ||||
Capital expenditures: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 30,625 | $ | 56,747 | ||||
Maoming Hengda | 296 | 32 | ||||||
Baotou Steel | - | - | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 668 | 82 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 31,589 | $ | 56,861 | ||||
Total Assets as of: | March 31, 2015 | December 31, 2014 | ||||||
Longmen Joint Venture | $ | 2,310,161 | $ | 2,408,218 | ||||
Maoming Hengda | 22,555 | 25,933 | ||||||
General Shengyuan | 1,142 | - | ||||||
General Steel (China) | 249,013 | 158,606 | ||||||
Interdivision assets | -79,743 | -30,486 | ||||||
Reconciling item (2) | 3,281 | 2,953 | ||||||
Total Assets | $ | 2,506,409 | $ | 2,565,224 | ||||
-1 | Reconciling item represents income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three months ended March 31, 2015 and 2014, which are non-operating entities. | |||||||
-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 March 31, 2015 and December 31, 2014, which are non-operating entities. | |||||||
Subsequent_event
Subsequent event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 24 – Subsequent event |
On April 14, 2015, the Company granted 500,000 shares of common stock for investor relations consulting services under a service agreements dated April 14, 2015. The shares were valued at $0.98 per share, the quoted market price at the time the services were provided. | |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | % | ||||||||||||||
Tianjin General Shengyuan IoT Technology Co., Ltd. (“General Shengyuan”) | PRC | 70 | % | ||||||||||||||
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 | % | ||||||||||||||
Baotou Steel | |||||||||||||||||
Prior to December 31, 2014, the Company held an 80.0% equity interest in Baotou Steel – General Steel Special Steel Pipe Joint Venture Co., Ltd. (“Baotou Steel”) through General Steel (China). On December 31, 2014, the Company sold its 80.0% equity interest in Baotou Steel to Tianjin Shuangjie Liansheng Rolled Steel Co., Ltd., an unrelated party for $0.7 million (RMB 4.0 million), receivable within one year of the sale. As a result of this transaction, the Company met the criteria under ASC 810-10-40-4 to deconsolidate Baotou Steel at disposal date and recognized a gain in accordance with ASC 810-10-40-5. | |||||||||||||||||
General Shengyuan | |||||||||||||||||
On February 13, 2015, the Company formed a joint venture entity, Tianjin General Shengyuan IoT Technology Co., Ltd, with a team of radio-frequency identification (“RFID”) experts (the “Expert Team”), to develop and commercialize RFID technology data solutions. Under the terms of the Agreement, the Company owned 70% of the joint venture by contributing $1.6 million (RMB 10.0 million), while the Expert Team committed to contribute intellectual property, including proprietary RFID technologies, licensed patents and domain expertise. | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | (b) | Principles of consolidation – subsidiaries | |||||||||||||||
The accompanying 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(d) Liquidity and Going Concern. | |||||||||||||||||
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: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 726,110 | $ | 837,135 | |||||||||||||
Plant and equipment, net | 1,557,027 | 1,537,687 | |||||||||||||||
Other noncurrent assets | 27,024 | 33,396 | |||||||||||||||
Total assets | 2,310,161 | 2,408,218 | |||||||||||||||
Total liabilities | -2,920,281 | -2,946,126 | |||||||||||||||
Net liabilities | $ | -610,120 | $ | -537,908 | |||||||||||||
VIE and its subsidiaries’ liabilities consist of the following: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 432,052 | $ | 638,829 | |||||||||||||
Accounts payable | 596,221 | 605,025 | |||||||||||||||
Accounts payable - related parties | 222,595 | 205,914 | |||||||||||||||
Short term loans - bank | 191,536 | 216,940 | |||||||||||||||
Short term loans - others | 45,795 | 54,524 | |||||||||||||||
Short term loans - related parties | 209,553 | 45,710 | |||||||||||||||
Other payables and accrued liabilities | 44,286 | 47,121 | |||||||||||||||
Other payables - related parties | 69,890 | 78,615 | |||||||||||||||
Customer deposits | 129,896 | 87,372 | |||||||||||||||
Customer deposits - related parties | 43,654 | 34,895 | |||||||||||||||
Deposit due to sales representatives | 19,361 | 17,871 | |||||||||||||||
Deposit due to sales representatives – related parties | 2,553 | 2,509 | |||||||||||||||
Taxes payable | 8,192 | 4,026 | |||||||||||||||
Deferred lease income | 2,179 | 2,176 | |||||||||||||||
Capital lease obligations, current | 8,678 | 8,508 | |||||||||||||||
Intercompany payable to be eliminated | 13,778 | 20,155 | |||||||||||||||
Total current liabilities | 2,040,219 | 2,070,190 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 352,850 | 339,549 | |||||||||||||||
Deferred lease income - noncurrent | 72,258 | 72,713 | |||||||||||||||
Capital lease obligations, noncurrent | 397,416 | 393,252 | |||||||||||||||
Profit sharing liability | 57,538 | 70,422 | |||||||||||||||
Total non-current liabilities | 880,062 | 875,936 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 2,920,281 | $ | 2,946,126 | |||||||||||||
Three months ended | Three months ended | ||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 328,158 | $ | 594,014 | |||||||||||||
Gross loss | $ | -32,147 | $ | -22,219 | |||||||||||||
Loss from operations | $ | -53,498 | $ | -39,294 | |||||||||||||
Net loss attributable to controlling interest | $ | -42,405 | $ | -38,034 | |||||||||||||
Longmen Joint Venture has two 100% owned subsidiaries, Yuxin Trading Co., Ltd. (“Yuxin”) and Yuteng Trading Co., Ltd. (“Yuteng”). Longmen Joint Venture has two consolidated subsidiaries, Hualong and Huatianyulong, in which it does not hold a controlling interest. Hualong and Huatianyulong are separate legal entities which were established in the PRC as limited liability companies and subsequently 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 March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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 March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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 a majority voting rights in each entity, and thereby, the power of control, to Longmen Joint Venture. | |||||||||||||||||
Liquidity Disclosure [Policy Text Block] | (d) | Liquidity and going concern | |||||||||||||||
The Company’s accounts have been prepared assuming that the company will continue as a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon aligning its sources of funding (debt and equity) with the expenditure requirements of the Company and repayment of the short-term debt facilities as and when they fall due. | |||||||||||||||||
The steel business is capital intensive and as a normal industry practice in PRC, the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties, financing sales, bank acceptance notes, and capital leases have been utilized to finance the working capital requirements and the capital expenditures of the Company. As a result, the Company’s debt to equity ratio as of March 31, 2015 and December 31, 2014 were (4.9) and (5.6), respectively. As of March 31, 2015, the Company’s current liabilities exceed current assets (excluding non-cash item) by $1.4 billion, which together with the gross loss from operations raises substantial doubt about its ability to continue as a going concern. | |||||||||||||||||
Our steel business has faced very tough market conditions and challenging profitability over the last several years, and based on current trends, we think the near-term challenges for the steel sector will likely linger. In reaction to this challenging market, we are proactively reviewing our strategy and asset portfolio and seeking to restructure low-efficient, non-core assets, as well as idle land resources to unlock hidden fair value. | |||||||||||||||||
The Company aims to transform into a leaner and fitter organization with better profitability. As such, the Company is strategically accelerating its business transformation to pursue opportunities that offer compelling benefits to the Company and shareholders, including: | |||||||||||||||||
· | First, strengthen the Company’s financials while providing the financial flexibility to pursue higher return, higher growth opportunities; | ||||||||||||||||
· | Second, reduce the complexity of the Company’s business structure, which is consistent with our objectives for internal simplification and operating efficiency; | ||||||||||||||||
· | Third, diversify operating risk in order to lower the Company’s high reliance on steel business, while at the same time leverage on the Company’s vast vertical resources in the steel industry; and | ||||||||||||||||
· | Fourth, pursue opportunities for additional value creation. | ||||||||||||||||
Management has implemented the following plans that are intended to mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. | |||||||||||||||||
Longmen Joint Venture, as the most important entity of the Company, accounted for majority of total sales of the Company. As such, the majority of the Company’s working capital needs come from Longmen Joint Venture. The Company’s ability to continue as a going concern depends heavily on Longmen Joint Venture’s operations. Longmen Joint Venture has obtained different types of financial supports, which are listed below by category: | |||||||||||||||||
Line of credit | |||||||||||||||||
The Company has lines of credit from the listed major banks totaling $142.0 million with expiration dates ranging from January 21, 2016 to October 14, 2016. | |||||||||||||||||
Banks | Amount of | Repayment Date | |||||||||||||||
Line of Credit | |||||||||||||||||
(in millions) | |||||||||||||||||
China Everbright Bank | 19.6 | January 21, 2016* | |||||||||||||||
Huaxia Bank | 24.5 | January 30, 2016* | |||||||||||||||
Bank of Beijing | 81.6 | 14-Oct-16 | |||||||||||||||
Bank of Xi’an | 16.3 | February 4, 2016* | |||||||||||||||
Total | $ | 142 | |||||||||||||||
*Management expects the lines of credit will be extended after the repayment dates. | |||||||||||||||||
As of the date of this report, the Company utilized $39.5 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 $897.1 million with the following companies: | |||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 244.7 | ||||||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 163.1 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 489.3 | |||||||||||||||
Total | $ | 897.1 | |||||||||||||||
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 $244.7 million. Company B signed a three-year agreement with Longmen Joint Venture on January 22, 2014 to finance its coke purchases up to $163.1 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 $77.6 million and $63.4 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 $489.3 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’s payable to Company C was approximately $16.2 million | |||||||||||||||||
Other financing | |||||||||||||||||
On April 22, 2014, April 23, 2014, and April 30, 2015, Longmen Joint Venture signed two-to-three-year payment extension agreements with Company D, E, F, G and H listed below. In total, Longmen Joint Venture can obtain $412.8 million in financial support from payment extensions granted by the following five companies: | |||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.6 | ||||||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86.4 | |||||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.6 | |||||||||||||||
Company G – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Company H – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Total | $ | 412.8 | |||||||||||||||
As of the date of this report, our payables to Company D, Company E, Company F, Company G, and Company H are approximately $8.3 million, $30.1 million, $42.7 million, $0, and $0.9 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 March 31, 2015, Longmen Joint Venture has collected a total amount of $21.9 million. Historically, this amount is quite stable and we do not expect a big fluctuation in this amount for the next twelve months from March 31, 2015 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 March 31, 2016. However, this opinion is based on the demand of the Company's products, economic conditions, the overcapacity issue in the steel industry and the Company's operating results not continuing to deteriorate and on our vendors and related parties being able to provide continued liquidity, as summarized below. The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | |||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months | |||||||||||||||||
ended March 31, 2016 | |||||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of March 31, 2015 (unaudited) | $ | -1,361.50 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 142 | ||||||||||||||||
Cash provided by vendor financing | 897.1 | ||||||||||||||||
Cash provided by other financing | 412.8 | ||||||||||||||||
Cash provided by sales representatives | 21.9 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended March 31, 2016 | -39.3 | ||||||||||||||||
Cash projected to be used for financing cost in the twelve months ended March 31, 2016 | -46.2 | ||||||||||||||||
Net projected change in cash for the twelve months ended March 31, 2016 | $ | 26.8 | |||||||||||||||
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 for property, plant and equipment, and potential losses on uncollectible receivables, allowance for inventory valuation, the interest rate used in the financing sales, the fair value of the assets recorded under capital lease and the present value of the net minimum lease payments of the capital lease. Actual results could differ from these estimates. | |||||||||||||||||
One of the Company’s most significant estimates is the determination of fair value of the profit sharing liability. Since the liability is calculated and largely based on management’s expectations of product demand, pricing, raw materials cost and projected manufacturing efficiencies, it is susceptible to material changes when actual results deviate from those expectations. While management believes its current assumptions are reasonable and achievable, there is no assurance that those future expectations will be met or that significant adjustments won’t be required in the future. | |||||||||||||||||
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. | |||||||||||||||||
Through the quarterly ended March 31, 2015, the Company has incurred recurring losses from the Company’s operations from the last several years as the Company’s steel business has faced very tough market conditions and challenging profitability. Management has continued its effort to implementing cost savings on our manufacturing overhead costs and to reduce our unit production cost. The Company has forecasted its loss will be continued until year 2017 and expected to make a turning point and become profitable in year 2018 and beyond. The Company’s forecast is based on current market condition, if the future market condition is different from its forecast, the Company might continue to incur additional loss in 2018 and beyond and the Company’s assets pool of its long-lived assets may become impaired. | |||||||||||||||||
The Company has significant exposure to the price fluctuation of raw materials and energy prices as part of its normal operations. As of March 31, 2015 and December 31, 2014, the Company did not have any open commodity contracts to mitigate such risks. | |||||||||||||||||
Cash includes demand deposits in accounts maintained with banks within the PRC, Hong Kong and the United States. Total cash (including restricted cash balances) in these banks on March 31, 2015 and December 31, 2014 amounted to $259.6 million and $367.2 million, including $0.6 million and $1.0 million that were deposited in Shaanxi Coal and Chemical Industry Group Financial Co., Ltd., a related party, respectively. As of March 31, 2015, $0.01 million cash in the bank was covered by insurance. The Company has not experienced any losses in other bank accounts and believes it is not exposed to any risks on its cash in bank accounts. | |||||||||||||||||
Two of the Company’s customers individually accounted for 12.1% and 10.5% of total sales for the three months ended March 31, 2015, respectively. One customer individually accounted for 81.7% of total accounts receivable, including related parties as of March 31, 2015. None of the Company’s customers accounted for more than 10% of total sales for the three months ended March 31, 2014. Two customers individually accounted for 32.1% and 20.5% of total accounts receivable, including related parties as of December 31, 2014, respectively. | |||||||||||||||||
None of the Company’s suppliers individually accounted for more than 10% of the total purchases for the three months ended March 31, 2015 and one of the Company’s suppliers individually accounted for 15.4% of the total purchases for the three months ended March 31, 2014. None of the Company’s suppliers individually accounted for more than 10% of total accounts payable as March 31, 2015 and December 31, 2014. | |||||||||||||||||
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 statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | |||||||||||||||||
Translation adjustments included in accumulated other comprehensive income amounted to $0.2 million and $0.6 million as of March 31, 2015 and December 31, 2014, respectively. The balance sheet amounts, with the exception of equity at March 31, 2015 and December 31, 2014 were translated at 6.13 RMB and 6.14 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the three months ended March 31, 2015 and 2014 were 6.15 RMB and 6.12 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | (h) | Financial instruments | |||||||||||||||
The accounting 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 market 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. | ||||||||||||||||
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 6.7%. | |||||||||||||||||
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. On November 22, 2014, the People’s Bank of China decreased standard bank borrowing rate across the board by 0.4%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.4% from 7.3% to 6.9%. On May 11, 2015, the People’s Bank of China decreased the standard bank borrowing rate again across the board by 0.25%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.25% from 6.9% to 6.7%. | |||||||||||||||||
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 | ||||||||||||||||
The above assumptions were reviewed by the Company at March 31, 2015 and December 31, 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. | |||||||||||||||||
The major drivers of the change in our estimate were the continuing decrease in the selling price of our products as well as a continuing downtrend in the sluggish infrastructure investment and consumption growth for the next ten years or so. As such, as of December 31, 2014 financial statement issuance we had lowered our projected growth in the steel market for approximately ten years as compared to our previous estimates at December 31, 2013. The variables and the impact on our inputs to the 2014 valuation of profit sharing fair value, as compared to the 2013 valuation of the profit sharing fair value can be summarized as follows: | |||||||||||||||||
- | Volume Inputs: The most recent 5 year China GDP forecast and Shaanxi GDP forecast decreased on average by 0.4% and 1.4% of GDP, respectively, versus the forecast used in 2013. | ||||||||||||||||
- | Steel Sales Price Inputs: The most recent China Steel Association price index, together with our actual result decreased, on average, by 5.6% versus the same forecast used in 2013. | ||||||||||||||||
- | Raw Material Cost Inputs: The most recent China Steel Association price index, together with the our actual result decreased, on average, by 4.7% versus the same forecast used in 2013 | ||||||||||||||||
The above reduced our Gross Profit % over the next 5 years by, on average, 0.4% from the 2013 valuation. In addition, the above reduced our Gross Profit % over the remaining profit sharing period of 11.33 years by, on average, 1.75% from the 2013 valuation at December 31, 2014. | |||||||||||||||||
As a result of the changes in valuation inputs noted above for the year ended December 31, 2014, the Company recognized a gain on the change in the fair value of the profit sharing liability of $91.0 million due to a $110.6 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits and a $0.1 million reduction resulting from the Asset Pool’s operating results for the year ended December 31, 2014 being slightly less favorable than previously estimated as of December 31, 2013, offset by a $8.1 million loss resulting from the 0.4% reduction of the present value discount rate and a $11.5 million loss from the present value discount. | |||||||||||||||||
For the three months ended March 31, 2015, the Company recognized a $12.9 million reduction in the fair value of profit sharing liability resulting from the change in estimates of future operating profits based on the April 2015 actual operating results and consideration for Chinese steel market trends in April 2015 as well as the May 11, 2015 change to the Borrowing Rate by 0.25%. These further recent changes in market conditions resulted in a decrease in the expected liability of $16.6 million primarily from adjustments to the 2015 and 2016 expected cash flows as well as a $2.5 million loss from the reduction in the present value discount rate of 0.25% and a $1.2 million loss from the present value discount. The estimated fair value of the profit sharing liability at March 31, 2015 is $57.5 million. | |||||||||||||||||
The variables and the impact on our inputs to the first quarter of 2015 valuation of profit sharing fair value, as compared to the 2014 valuation of the profit sharing fair value can be summarized as follows: | |||||||||||||||||
- | Volume Inputs: the Company reduced our projected sales volume in 2015 by 3% versus the forecast used in 2014. | ||||||||||||||||
- | Steel Sales Price Inputs: the Company reduced our projected selling price in 2015 by 12% versus the forecast used in 2014 and reduced our projected selling price in 2016 by 7% versus the forecast used in 2014. | ||||||||||||||||
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 borrowings rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of March 31, 2015 would have been $66.2 million and we would increase the loss from the change in the fair value of the profit sharing liability by $8.7 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 March 31, 2015 would have been $53.1 million and we would increase the gain from the change in the fair value of the profit sharing liability by $4.4 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 March 31, 2015: | |||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at March 31, 2015 | |||||||||||||||
of March 31, 2015 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
Total | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
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, 2014: | |||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | |||||||||||||||
of December 31, | 2014 | ||||||||||||||||
2014 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
Total | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
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 three months ended March 31, 2015 and for the year ended December 31, 2014: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 70,422 | $ | 162,295 | |||||||||||||
Change in fair value of profit sharing liability: | |||||||||||||||||
Change in preset value of estimate of future operating profits | -16,569 | -110,589 | |||||||||||||||
Change in discount rate | 2,454 | 8,106 | |||||||||||||||
Interest expense - present value discount amortization | 1,220 | 11,544 | |||||||||||||||
Difference between the previously estimated operating results for the current period and actual results | - | -79 | |||||||||||||||
Exchange rate effect | 11 | -855 | |||||||||||||||
Ending balance | $ | 57,538 | $ | 70,422 | |||||||||||||
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 request for payment to the customer’s bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee. | |||||||||||||||||
Restricted notes receivable represents notes receivable pledged as collateral for short-term loans and short-term notes payable issued by banks. | |||||||||||||||||
Interest expenses for early submission request of payment amounted to $8.0 million and $14.1 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||
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 classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset. | |||||||||||||||||
Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service, maintenance, repairs and minor renewals are charged directly to expense as incurred. Major additions and betterment to buildings and equipment are capitalized. Interest incurred during construction is capitalized into construction in progress. All other interest is expensed as incurred. | |||||||||||||||||
Long lived assets, including buildings and improvements, equipment and intangible assets are reviewed if events and changes in circumstances indicate that its carrying amount may not be recoverable, to determine whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of depreciation and amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. | |||||||||||||||||
Due to the recurring losses in the Longmen Joint Venture’s operations, the Company has considered it is a triggering event that Longmen Joint Venture’s carrying amount may not be recoverable, to determine whether its carrying value has become impaired. The Company uses the undiscounted cash flow estimation approach for the purpose of performing a recoverability test which includes future cash inflows less associated cash outflows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the assets. For purposes of assessment, the long lived assets were grouped at the lowest level for which there is identifiable cash flows. The major groupings analyzed include Longmen Joint Venture, Maoming Hengda and General Steel (China). Further, our estimate of future cash flows includes estimated future cash flows necessary to maintain our existing production potential over the entire period and within the various groups. The projections are based on a best estimate approach as opposed to a probability weighted approach based on the likelihood of possible outcomes. When the Company identifies an impairment, the Company reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flows method. As of March 31, 2015, the Company expects its long-lived assets to be fully recoverable (see Note 2(f.)). | |||||||||||||||||
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 March 31, 2015, the Company expects these assets to be fully recoverable. | |||||||||||||||||
Land use rights | |||||||||||||||||
All land in the PRC is owned by the government. However, the government grants “land use rights.” General Steel (China) acquired land use rights in 2001 for a total of $3.9 million (RMB 23.7 million). These land use rights are for 50 years and expire in 2050 and 2053. The Company amortizes the land use rights over the twenty-year business term because its business license had a twenty-year term. | |||||||||||||||||
Long Steel Group contributed land use rights for a total amount of $24.2 million (RMB 148.3 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 on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,870 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,187 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,706 | 2054 | ||||||||||||||
Mining right | |||||||||||||||||
Mining rights are capitalized at cost when acquired, including amounts associated with any value beyond proven and probable reserves, and amortized to operations as depletion expense using the units-of-production method over the estimated proven and probable recoverable tons. Longmen Joint Venture has iron ore mining right amounting to $2.4 million (RMB 15.0 million), which is amortized over the estimated recoverable reserve of 4.2 million tons. | |||||||||||||||||
Investment, Policy [Policy Text Block] | (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 March 31, 2015 and December 31, 2014. | |||||||||||||||||
Unconsolidated entities | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
acquired | Net investment | 2014 | % | ||||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,014 | 24.1 | $ | 1,153 | 24.1 | ||||||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of March 31, 2015 and December 31, 2014. | |||||||||||||||||
Unconsolidated | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
entities | acquired | Net investment | 2014 | % | |||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,691 | 32 | $ | 15,670 | 32 | ||||||||||
Total investment income (loss) in unconsolidated subsidiaries amounted to $(0.04) million and $0.01 million for the three months ended March 31, 2015 and 2014, respectively, which was included in “Income from equity investments” in the condensed consolidated statements of operations and comprehensive loss. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | (m) | Revenue recognition | |||||||||||||||
Sales is 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 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 obligators, 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 retained in accordance with ASC 605-45. Sales in trading transactions, which were netted against corresponding cost of goods sold, amounted to $107.7 million and $38.2 million for the three months ended March 31, 2015 and 2014, respectively. The net amount in gross loss amounted to $64,994 and $288,513 during the respective periods. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | (n) | Recently issued accounting pronouncements | |||||||||||||||
In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Amendments to the Consolidation Analysis. Under both current GAAP requirements and the amendments in this update, a decision maker is determined to be the primary beneficiary of a VIE if it satisfies both the power and the economics criteria. The primary beneficiary consolidates a VIE because it has a controlling financial interest. Under the requirements in current GAAP, if a fee arrangement paid to a decision maker, such as an asset management fee, is determined to be a variable interest in a VIE, the decision maker must include the fee arrangement in its primary beneficiary determination and could consolidate the VIE on the basis of power (decision-making authority) and economics (the fee arrangement). However, the amendments in this Update specify that some fees paid to a decision maker are excluded from the evaluation of the economics criterion if the fees are both customary and commensurate with the level of effort required for the services provided. Those amendments make it less likely for a decision maker to meet the economics criterion solely on the basis of a fee arrangement. The amendments in this update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. Management is evaluating the impact that will arise from these Amendments. | |||||||||||||||||
In April 2015, the FASB issued authoritative guidance on accounting for Interest-Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, without changing existing recognition and measurement guidance for debt issuance costs. The new guidance is required to be applied on a retrospective basis and to be accounted for as a change in an accounting principle. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years and early adoption of the amendments in this update is permitted. The Company will apply early adoption of this standard in the second quarter of 2015. The implementation of this standard will result in the reclassification of certain debt issuance costs from deferred financing cost to a reduction in the carrying amount of the related debt liability within the Company’s consolidated balance sheets. | |||||||||||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | % | ||||||||||||||
Tianjin General Shengyuan IoT Technology Co., Ltd. (“General Shengyuan”) | PRC | 70 | % | ||||||||||||||
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: | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current assets | $ | 726,110 | $ | 837,135 | |||||||||||||
Plant and equipment, net | 1,557,027 | 1,537,687 | |||||||||||||||
Other noncurrent assets | 27,024 | 33,396 | |||||||||||||||
Total assets | 2,310,161 | 2,408,218 | |||||||||||||||
Total liabilities | -2,920,281 | -2,946,126 | |||||||||||||||
Net liabilities | $ | -610,120 | $ | -537,908 | |||||||||||||
Schedule Of Liabilities Of Variable Interest Entities and Subsidiaries [Table Text Block] | VIE and its subsidiaries’ liabilities consist of the following: | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Current liabilities: | |||||||||||||||||
Short term notes payable | $ | 432,052 | $ | 638,829 | |||||||||||||
Accounts payable | 596,221 | 605,025 | |||||||||||||||
Accounts payable - related parties | 222,595 | 205,914 | |||||||||||||||
Short term loans - bank | 191,536 | 216,940 | |||||||||||||||
Short term loans - others | 45,795 | 54,524 | |||||||||||||||
Short term loans - related parties | 209,553 | 45,710 | |||||||||||||||
Other payables and accrued liabilities | 44,286 | 47,121 | |||||||||||||||
Other payables - related parties | 69,890 | 78,615 | |||||||||||||||
Customer deposits | 129,896 | 87,372 | |||||||||||||||
Customer deposits - related parties | 43,654 | 34,895 | |||||||||||||||
Deposit due to sales representatives | 19,361 | 17,871 | |||||||||||||||
Deposit due to sales representatives – related parties | 2,553 | 2,509 | |||||||||||||||
Taxes payable | 8,192 | 4,026 | |||||||||||||||
Deferred lease income | 2,179 | 2,176 | |||||||||||||||
Capital lease obligations, current | 8,678 | 8,508 | |||||||||||||||
Intercompany payable to be eliminated | 13,778 | 20,155 | |||||||||||||||
Total current liabilities | 2,040,219 | 2,070,190 | |||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long term loans - related parties | 352,850 | 339,549 | |||||||||||||||
Deferred lease income - noncurrent | 72,258 | 72,713 | |||||||||||||||
Capital lease obligations, noncurrent | 397,416 | 393,252 | |||||||||||||||
Profit sharing liability | 57,538 | 70,422 | |||||||||||||||
Total non-current liabilities | 880,062 | 875,936 | |||||||||||||||
Total liabilities of consolidated VIE | $ | 2,920,281 | $ | 2,946,126 | |||||||||||||
Schedule Of Statement Of Operations Of Variable Interest Entities and Subsidiaries [Table Text Block] | Three months ended | Three months ended | |||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Sales | $ | 328,158 | $ | 594,014 | |||||||||||||
Gross loss | $ | -32,147 | $ | -22,219 | |||||||||||||
Loss from operations | $ | -53,498 | $ | -39,294 | |||||||||||||
Net loss attributable to controlling interest | $ | -42,405 | $ | -38,034 | |||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | The Company has lines of credit from the listed major banks totaling $142.0 million with expiration dates ranging from January 21, 2016 to October 14, 2016. | ||||||||||||||||
Banks | Amount of | Repayment Date | |||||||||||||||
Line of Credit | |||||||||||||||||
(in millions) | |||||||||||||||||
China Everbright Bank | 19.6 | January 21, 2016* | |||||||||||||||
Huaxia Bank | 24.5 | January 30, 2016* | |||||||||||||||
Bank of Beijing | 81.6 | 14-Oct-16 | |||||||||||||||
Bank of Xi’an | 16.3 | February 4, 2016* | |||||||||||||||
Total | $ | 142 | |||||||||||||||
*Management expects the lines of credit will be extended after the repayment dates. | |||||||||||||||||
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 March 31, 2015: | ||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at March 31, 2015 | |||||||||||||||
of March 31, 2015 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
Total | $ | 57,538 | $ | - | $ | - | $ | 57,538 | |||||||||
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, 2014: | |||||||||||||||||
(in thousands) | Carrying Value as | Fair Value Measurements at December 31, | |||||||||||||||
of December 31, | 2014 | ||||||||||||||||
2014 | Using Fair Value Hierarchy | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Profit sharing liability | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
Total | $ | 70,422 | $ | - | $ | - | $ | 70,422 | |||||||||
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 three months ended March 31, 2015 and for the year ended December 31, 2014: | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Beginning balance | $ | 70,422 | $ | 162,295 | |||||||||||||
Change in fair value of profit sharing liability: | |||||||||||||||||
Change in preset value of estimate of future operating profits | -16,569 | -110,589 | |||||||||||||||
Change in discount rate | 2,454 | 8,106 | |||||||||||||||
Interest expense - present value discount amortization | 1,220 | 11,544 | |||||||||||||||
Difference between the previously estimated operating results for the current period and actual results | - | -79 | |||||||||||||||
Exchange rate effect | 11 | -855 | |||||||||||||||
Ending balance | $ | 57,538 | $ | 70,422 | |||||||||||||
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 on | |||||||||||||||
(in thousands) | |||||||||||||||||
General Steel (China) | $ | 3,870 | 2050 & 2053 | ||||||||||||||
Longmen Joint Venture | $ | 24,187 | 2048 & 2052 | ||||||||||||||
Maoming Hengda | $ | 2,706 | 2054 | ||||||||||||||
Schedule Of Investments By Affiliates [Table Text Block] | The table below summarizes Longmen Joint Venture’s investment holdings as of March 31, 2015 and December 31, 2014. | ||||||||||||||||
Unconsolidated entities | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
acquired | Net investment | 2014 | % | ||||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Xi’an Delong Powder Engineering Materials Co., Ltd. | 2007 | $ | 1,014 | 24.1 | $ | 1,153 | 24.1 | ||||||||||
The table below summarizes General Steel (China)’s investment holding (see Note 2(a) - Basis of presentation) as of March 31, 2015 and December 31, 2014. | |||||||||||||||||
Unconsolidated | Year | 31-Mar-15 | Owned % | December 31, | Owned | ||||||||||||
entities | acquired | Net investment | 2014 | % | |||||||||||||
(In thousands) | Net investment | ||||||||||||||||
(In thousands) | |||||||||||||||||
Tianwu General Steel Material Trading Co., Ltd. | 2010 | $ | 15,691 | 32 | $ | 15,670 | 32 | ||||||||||
Longmen Joint Venture [Member] | |||||||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | The detailed breakdown of Longmen Joint Venture’s estimated cash flows items are listed below. | ||||||||||||||||
Cash inflow (outflow) | |||||||||||||||||
(in millions) | |||||||||||||||||
For the twelve months | |||||||||||||||||
ended March 31, 2016 | |||||||||||||||||
Current liabilities over current assets (excluding deferred lease income) as of March 31, 2015 (unaudited) | $ | -1,361.50 | |||||||||||||||
Projected cash financing and outflows: | |||||||||||||||||
Cash provided by line of credit from banks | 142 | ||||||||||||||||
Cash provided by vendor financing | 897.1 | ||||||||||||||||
Cash provided by other financing | 412.8 | ||||||||||||||||
Cash provided by sales representatives | 21.9 | ||||||||||||||||
Cash projected to be used in operations in the twelve months ended March 31, 2016 | -39.3 | ||||||||||||||||
Cash projected to be used for financing cost in the twelve months ended March 31, 2016 | -46.2 | ||||||||||||||||
Net projected change in cash for the twelve months ended March 31, 2016 | $ | 26.8 | |||||||||||||||
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 $897.1 million with the following companies: | ||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company A – related party | July 30, 2014 – July 30, 2019 | $ | 244.7 | ||||||||||||||
Company B – third party | January 22, 2014 – January 22, 2017 | 163.1 | |||||||||||||||
Company C – third party | October 1, 2013 – March 31, 2016 | 489.3 | |||||||||||||||
Total | $ | 897.1 | |||||||||||||||
Other Financing [Member] | |||||||||||||||||
Schedule Of Estimated Cash Flow [Table Text Block] | On April 22, 2014, April 23, 2014, and April 30, 2015, Longmen Joint Venture signed two-to-three-year payment extension agreements with Company D, E, F, G and H listed below. In total, Longmen Joint Venture can obtain $412.8 million in financial support from payment extensions granted by the following five companies: | ||||||||||||||||
Company | Financing Period | Financing Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Company D – related party | April 22, 2014 – April 22, 2017 | $ | 81.6 | ||||||||||||||
Company E – related party | April 23, 2014 – April 23, 2017 | 86.4 | |||||||||||||||
Company F – related party | April 22, 2014 – April 22, 2017 | 81.6 | |||||||||||||||
Company G – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Company H – related party | April 30, 2015 – April 30, 2018 | 81.6 | |||||||||||||||
Total | $ | 412.8 | |||||||||||||||
Loans_receivable_Tables
Loans receivable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to unrelated party; due on demand; interest rate is 8.0%. | $ | 42,569 | $ | 36,001 | ||||
The Company has the following loans receivable – related parties due within one year as of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Loan to Tianjin Hengying Trading Co., Ltd.; due on demand; interest rate is 10.0%. | $ | 622 | $ | 13,997 | ||||
Loan to Tianjin Dazhan Industry Co., Ltd.; due on demand; interest rate is 10.0%. | - | 14,617 | ||||||
Loan to Beijing Shenghua Xinyuan Metal Materials Co., Ltd.; due on demand; interest rate is 10.0%. | 6,106 | 6,099 | ||||||
Total loans receivable – related parties | $ | 6,728 | $ | 34,713 | ||||
Accounts_receivable_including_1
Accounts receivable (including related parties), net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Accounts receivable | $ | 11,194 | $ | 9,804 | ||||
Less: allowance for doubtful accounts | -508 | -483 | ||||||
Accounts receivable – related parties | 59,183 | 8,624 | ||||||
Less: allowance for doubtful accounts – related parties | -126 | -126 | ||||||
Net accounts receivable | $ | 69,743 | $ | 17,819 | ||||
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | Movement of allowance for doubtful accounts is as follows: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 609 | $ | 1,053 | ||||
Charge to expense | 25 | 368 | ||||||
Less: recovery | - | -8 | ||||||
Deconsolidation of Baotou Steel | - | -798 | ||||||
Exchange rate effect | - | -6 | ||||||
Ending balance | $ | 634 | $ | 609 | ||||
Other_receivables_including_re1
Other receivables (including related parties), net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Other receivables, including related party receivables, net of allowance for doubtful accounts consists of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Other receivables | $ | 114,761 | $ | 73,944 | ||||
Less: allowance for doubtful accounts | -11,470 | -10,198 | ||||||
Other receivables – related parties | 23,143 | 39,734 | ||||||
Less: allowance for doubtful accounts – related parties | -64 | -64 | ||||||
Net other receivables | $ | 126,370 | $ | 103,416 | ||||
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | Movement of allowance for doubtful accounts, including related parties, is as follows: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 10,262 | $ | 2,606 | ||||
Charge to expense | 1,260 | 7,670 | ||||||
Less: recovery | -5 | -6 | ||||||
Exchange rate effect | 17 | -8 | ||||||
Ending balance | $ | 11,534 | $ | 10,262 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Supplies | $ | 17,327 | $ | 18,838 | ||||
Raw materials | 100,509 | 143,563 | ||||||
Finished goods | 43,086 | 12,301 | ||||||
Less: allowance for inventory valuation | -12,627 | -18,375 | ||||||
Total inventories | $ | 148,295 | $ | 156,327 | ||||
Summary Of Inventory Valuation Allowance [Table Text Block] | Movement of allowance for inventory valuation is as follows: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 18, 375 | $ | 15,397 | ||||
Addition | 12,581 | 18,362 | ||||||
Less: write-off | -18,329 | -15,311 | ||||||
Exchange rate effect | - | -73 | ||||||
Ending balance | $ | 12,627 | $ | 18,375 | ||||
Advances_on_inventory_purchase1
Advances on inventory purchases (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule Of Advances On Inventory Purchases [Table Text Block] | Advances on inventory purchases, including related party, net of allowance for doubtful accounts consists of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Advances on inventory purchases | $ | 51,944 | $ | 76,320 | ||||
Less: allowance for doubtful accounts | -2,504 | -2,501 | ||||||
Advances on inventory purchases – related parties | 95,757 | 45,617 | ||||||
Net advances on inventory purchases | $ | 145,197 | $ | 119,436 | ||||
Schedule Of Credit Losses Related To Advances On Inventory Purchase [Table Text Block] | Movement of allowance for doubtful accounts, including related parties, is as follows: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 2,501 | $ | 105 | ||||
Charge to expense | - | 2,395 | ||||||
Exchange rate effect | 3 | 1 | ||||||
Ending balance | $ | 2,504 | $ | 2,501 | ||||
Plant_and_equipment_net_Tables
Plant and equipment, net (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment [Table Text Block] | Plant and equipment consist of the following: | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Buildings and improvements | $ | 437,477 | $ | 279,776 | ||||||
Machinery | 887,292 | 669,427 | ||||||||
Machinery under capital lease | 627,505 | 626,735 | ||||||||
Transportation and other equipment | 23,101 | 22,765 | ||||||||
Construction in progress | 9,835 | 342,660 | ||||||||
Subtotal | 1,985,210 | 1,941,363 | ||||||||
Less: accumulated depreciation | -423,699 | -398,227 | ||||||||
Total | $ | 1,561,511 | $ | 1,543,136 | ||||||
Schedule Of Construction In Progress [Table Text Block] | Construction in progress consisted of the following as of March 31, 2015: | |||||||||
Construction in progress | Value | Completion | Estimated | |||||||
additional cost to | ||||||||||
complete | ||||||||||
description | (In thousands) | date | (In thousands) | |||||||
Restructuring of ventilation system | 2 | Dec-15 | 979 | |||||||
Energy management system | 326 | Apr-15 | 1,925 | |||||||
Reconstruction of miscellaneous factory buildings | 6,959 | Dec-15 | 7,023 | |||||||
Project materials | 2,145 | - | ||||||||
Others | 403 | - | ||||||||
Total | $ | 9,835 | $ | 9,927 | ||||||
Schedule of Capital Leased Assets [Table Text Block] | The carrying value of assets acquired under the capital lease consists of the following: | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 627,505 | $ | 626,735 | ||||||
Less: accumulated depreciation | -116,075 | -107,782 | ||||||||
Carrying value of leased assets | $ | 511,430 | $ | 518,953 | ||||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consist of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Land use rights | $ | 30,763 | $ | 30,726 | ||||
Mining right | 2,450 | 2,447 | ||||||
Software | 1,059 | 1,058 | ||||||
Subtotal | 34,272 | 34,231 | ||||||
Less: | ||||||||
Accumulated amortization – land use rights | -9,308 | -9,127 | ||||||
Accumulated amortization – mining right | -1,339 | -1,431 | ||||||
Accumulated amortization – software | -740 | -713 | ||||||
Subtotal | -11,387 | -11,271 | ||||||
Intangible assets, net | $ | 22,885 | $ | 22,960 | ||||
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) | |||||||
31-Mar-16 | $ | 946 | 21,939 | |||||
31-Mar-17 | 946 | 20,993 | ||||||
31-Mar-18 | 946 | 20,047 | ||||||
31-Mar-19 | 946 | 19,101 | ||||||
31-Mar-20 | 946 | 18,155 | ||||||
Thereafter | 18,155 | - | ||||||
Total | $ | 22,885 | ||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Short Term Notes Payable [Member] | ||||||||
Schedule of Short-term Debt [Table Text Block] | The Company had the following short-term notes payable as of: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Notes payable to various banks in China, due June 2015. Restricted cash required of $8.2 million and $14.7 million as of March 31, 2015 and December 31, 2014, respectively; guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | $ | 16,310 | $ | 22,806 | ||||
Longmen Joint Venture: Notes payable to various banks in China, due various dates from May to October 2015. $214.0 million restricted cash and $1.6 million notes receivable are secured for notes payable as of March 31, 2015, and comparatively $324.7 million restricted cash and $0 notes receivable are secured for notes payable as of December 31, 2014, respectively; some notes are further guaranteed by third parties. These notes payable were either repaid or renewed subsequently on the due dates. | 432,052 | 638,829 | ||||||
Total short-term notes payable | $ | 448,362 | $ | 661,635 | ||||
Due To Banks [Member] | ||||||||
Schedule of Short-term Debt [Table Text Block] | March 31, 2015 | December 31, 2014 | ||||||
(in thousands) | (in thousands) | |||||||
General Steel (China): Loans from various banks in China, due various dates from June 2015 to January 2016. Weighted average interest rate was 7.3% per annum and 7.2% per annum as of March 31, 2015 and December 31, 2014, respectively; some are guaranteed by third parties. These loans were either repaid or renewed subsequently on the due dates. | $ | 40,612 | $ | 40,562 | ||||
Longmen Joint Venture: Loans from various banks in China, due various dates from May to November 2015. Weighted average interest rate was 7.8% per annum and 7.1% per annum as of March 31, 2015 and December 31, 2014, respectively; some are guaranteed by third parties, $27.3 million restricted cash and $66.2 notes receivable and comparatively $16.3 million restricted cash and $111.8 notes receivable were secured for the loans as of March 31, 2015 and December 31, 2014, respectively; These loans were either repaid or renewed subsequently on the due dates. | 191,536 | 216,940 | ||||||
Total short-term loans - bank | $ | 232,148 | $ | 257,502 | ||||
Due To Unrelated Parties [Member] | ||||||||
Schedule of Short-term Debt [Table Text Block] | March 31, 2015 | December 31, 2014 | ||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from various unrelated companies and individuals, due various dates from May to September 2015, and weighted average interest rate was 10.2% per annum and 5.7% per annum as of March 31, 2015 and December 31, 2014, respectively. These loans were either repaid or renewed subsequently on the due dates. | $ | 37,337 | $ | 16,999 | ||||
Longmen Joint Venture: Loans from financing sales. | 8,458 | 37,525 | ||||||
Maoming Hengda: Loans from one unrelated parties and one related party, due on demand, none interest bearing. | 6,200 | 6,193 | ||||||
Total short-term loans – others | $ | 51,995 | $ | 60,717 | ||||
Due To Related Parties [Member] | ||||||||
Schedule of Short-term Debt [Table Text Block] | March 31, 2015 | December 31, 2014 | ||||||
(in thousands) | (in thousands) | |||||||
General Steel China: Loans from Yangpu Capital Automobile, due on demand, and interest rates is 10% per annum. | $ | 670 | $ | 670 | ||||
General Steel China: Loans from Tianjin Dazhan Industry Co., Ltd, due on demand, and interest rates is 10% per annum. | 7,174 | - | ||||||
Longmen Joint Venture: Loan from Shaanxi Coal and Chemical Industry Group Co., Ltd., due on demand, and interest rate is 7.0% per annum. | 128 | 128 | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group due on December 2015, and interest rate is 6.9% and 8.0% per annum. The Company repaid $9,489 subsequent to March 31, 2015. | 91,173 | - | ||||||
Longmen Joint Venture: Loan from Shaanxi Steel Group Hanzhong Steel Co., Ltd. due on April 2015, and interest rate is 8.0% per annum. Full balance becomes due on demand in April 2015. | 8,155 | - | ||||||
Longmen Joint Venture: Loan from Long Steel Group due on April 2015, and interest rate is 12.0% per annum. The Company repaid $4,924 subsequent to March 31, 2015. Remaining balance becomes due on demand. | 8,155 | - | ||||||
Longmen Joint Venture: Loan from Tianjin General Qiugang Pipe Co., Ltd due on September 2015, and interest rate is 5.4% per annum. | 3,262 | - | ||||||
Longmen Joint Venture: Loans from financing sales. | 98,680 | 45,582 | ||||||
Total short-term loans - related parties | $ | 217,397 | $ | 46,380 | ||||
Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | March 31, 2015 | December 31, 2014 | ||||||
(in thousands) | (in thousands) | |||||||
Longmen Joint Venture: Loans from Shaanxi Steel Group, due on various dates through March 2018 and interest rate are 5.6% - 8.0% per annum. | $ | 352,850 | $ | 339,549 | ||||
Capital_lease_obligations_Tabl
Capital lease obligations (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Leases, Capital [Abstract] | |||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Presented below is a schedule of estimated minimum lease payments on the capital lease obligation for the next five years as of March 31, 2015: | ||||
Year ending March 31, | Capital Lease Obligations | ||||
Minimum Lease Payments | |||||
(in thousands) | |||||
2016 | $ | 10,665 | |||
2017 | 175,427 | ||||
2018 | 33,657 | ||||
2019 | 30,685 | ||||
2020 | 29,621 | ||||
Thereafter | 317,780 | ||||
Total minimum lease payments | 597,835 | ||||
Less: amounts representing interest | -191,741 | ||||
Ending balance | $ | 406,094 | |||
Taxes_Tables
Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended March 31, 2015 and 2014 are as follows: | |||||||
(In thousands) | The three months ended | The three months ended | ||||||
March 31, 2015 | March 31, 2014 | |||||||
Current | $ | 30 | $ | 5 | ||||
Deferred | - | - | ||||||
Total provision for income taxes | $ | 30 | $ | 5 | ||||
Summary of Valuation Allowance [Table Text Block] | Movement of valuation allowance: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
Beginning balance | $ | 114,820 | $ | 97,569 | ||||
Current period addition | 10,040 | 18,951 | ||||||
Current period reversal | -1,317 | -614 | ||||||
Deconsolidation of Baotou Steel | - | -625 | ||||||
Exchange difference | 173 | -461 | ||||||
Ending balance | $ | 123,716 | $ | 114,820 | ||||
Schedule Of Taxes Payable [Table Text Block] | Taxes payable consisted of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||
VAT taxes payable | $ | 6,847 | $ | 3,147 | ||||
Income taxes payable | 209 | 243 | ||||||
Misc. taxes | 2,337 | 1,811 | ||||||
Totals | $ | 9,393 | $ | 5,201 | ||||
Related_party_transactions_and1
Related party transactions and balances (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Schedule of Capital Leased Assets [Table Text Block] | The carrying value of assets acquired under the capital lease consists of the following: | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 627,505 | $ | 626,735 | ||||||
Less: accumulated depreciation | -116,075 | -107,782 | ||||||||
Carrying value of leased assets | $ | 511,430 | $ | 518,953 | ||||||
Schedule Of Related Party Sales [Table Text Block] | The following chart summarized sales to related parties for the three months ended March 31, 2015 and 2014. | |||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
March 31, 2015 | March 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 11,270 | $ | 44,800 | |||||
Shaanxi Haiyan Trade Co., Ltd | Significant influence by Long Steel Group* | 9,578 | 15 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 15,998 | 20,736 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 481 | 471 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 20,068 | 4,969 | |||||||
Shaanxi Long Steel Group Baoji Steel Rolling Co., Ltd | Subsidiary of Long Steel Group | - | 6,618 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | - | 4,597 | |||||||
Total | $ | 57,395 | $ | 82,206 | ||||||
*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. | ||||||||||
Schedule Of Related Party Purchases [Table Text Block] | The following charts summarize purchases from related parties for the three months ended March 31, 2015 and 2014. | |||||||||
Name of related parties | Relationship | Three months ended | Three months ended | |||||||
March 31, 2015 | March 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 5,993 | $ | 151,772 | |||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Long Steel Group | 48,147 | 44,088 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 1,072 | 904 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 1,505 | - | |||||||
Shaanxi Huafu New Energy Co., Ltd | Significant influence by the Long Steel Group | 5,960 | 6,660 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 36,174 | 23,339 | |||||||
Tianjin General Quigang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding** | 3,287 | 4,275 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | - | 27,919 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 331 | 47 | |||||||
Total | $ | 102,469 | $ | 259,004 | ||||||
**The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | ||||||||||
Schedule Of Related Party Transactions Loan Receivables From Related Party [Table Text Block] | Loans receivable – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co., Ltd.* | Partially owned by CEO through indirect shareholding | $ | 622 | $ | 13,997 | |||||
Tianjin Dazhan Industry Co., Ltd.* | Partially owned by CEO through indirect shareholding | - | 14,617 | |||||||
Beijing Shenghua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 6,106 | 6,099 | |||||||
Total | $ | 6,728 | $ | 34,713 | ||||||
*The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. | ||||||||||
Schedule Of Related Party Transactions, Accounts Receivables From Related Party [Table Text Block] | Accounts receivables – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 151 | $ | 148 | |||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 56,982 | - | |||||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 5,715 | |||||||
Tianjin Daqiuzhuang Steel Plates | Partially owned by CEO through indirect shareholding | 19 | 19 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 2,031 | 2,101 | |||||||
Others | - | 641 | ||||||||
Total | $ | 59,183 | $ | 8,624 | ||||||
Schedule Of Related Party Transactions, Other Receivables Related Parties [Table Text Block] | Other receivables – related parties: | |||||||||
Other receivables - related parties are those nontrade receivables arising from transactions between the Company and its related parties, such as advances or payments made on behalf of these related parties. | ||||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 1,219 | $ | 165 | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 1,141 | 35,669 | |||||||
Tianjin General Quigang Pipe Co., Ltd* | Partially owned by CEO through indirect shareholding | 17,939 | 1,237 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 927 | 721 | |||||||
Beijing Shenghua Xinyuan Metal Materials Co., Ltd. | Partially owned by CEO through indirect shareholding | 466 | 313 | |||||||
Victory Energy Resource Co., Ltd. | Partially owned by CEO through indirect shareholding | 1,101 | 1,101 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 350 | 528 | |||||||
Total | $ | 23,143 | $ | 39,734 | ||||||
* Full balance has been repaid subsequently to March 31, 2015 by this entity. | ||||||||||
Schedule Of Related Party Transactions, Advances On Inventory Purchase From Related Parties [Table Text Block] | Advances on inventory purchase – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | $ | 7,269 | $ | 7,139 | |||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | - | 27,549 | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 3,873 | 3,807 | |||||||
Tianjin General Qiugang Pipe Co., Ltd* | Partially owned by CEO through indirect shareholding | 84,547 | 7,091 | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 68 | 31 | |||||||
Total | $ | 95,757 | $ | 45,617 | ||||||
*During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit – related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Company’s trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Company’s trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | ||||||||||
Schedule Of Related Party Transactions, Accounts Payable Related Parties [Table Text Block] | Accounts payable - related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Coking Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture | $ | 77,617 | $ | 64,276 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 94,006 | 79,886 | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd. | Shareholder of Shaanxi Steel | 14,828 | 23,726 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 870 | 869 | |||||||
Xi’an Pinghe Metallurgical Raw Material Co., Ltd | Noncontrolling shareholder of Long Steel Group | 10,829 | 11,035 | |||||||
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 | 1,002 | 746 | |||||||
Beijing Daishang Trading Co., Ltd | Noncontrolling shareholder of Longmen Joint Venture’s subsidiary | 28 | 36 | |||||||
Tianjin General Qiugang Pipe Co., Ltd | Partially owned by CEO through indirect shareholding | - | 2,462 | |||||||
Tianwu General Steel Material Trading Co., Ltd. | Investee of General Steel (China) | 7,986 | 22,916 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 4,274 | 1,773 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 683 | - | |||||||
Shaanxi Shenganda Trading Co, Ltd. | Significant influence by Long Steel Group | 14,834 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 7 | 57 | |||||||
Total | $ | 226,964 | $ | 207,783 | ||||||
Schedule Of Related Party Transactions, Short Term Loans Related Parties [Table Text Block] | Short-term loans - related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel Group Hanzhong Steel Co., Ltd. | Subsidiary of Shaanxi Steel | $ | 8,155 | $ | - | |||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 91,173 | - | |||||||
Shaanxi Coal and Chemical Industry Group Co., Ltd | Shareholder of Shaanxi Steel | 68,754 | 34,460 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 30,533 | - | |||||||
Tianjin Hengying Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 7,610 | 3,039 | |||||||
Tianjin General Quigang Pipe Co., Ltd. | Partially owned by CEO through indirect shareholding | 3,262 | ||||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 7,240 | 8,211 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 670 | 670 | |||||||
Total | $ | 217,397 | $ | 46,380 | ||||||
Schedule Of Related Party Transactions, Other Payable Related Parties [Table Text Block] | 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 | March 31, | December 31, | |||||||
2015 | 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Tianjin Hengying Trading Co, Ltd | Partially owned by CEO through indirect shareholding | $ | 378 | $ | 378 | |||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 28,277 | 33,968 | |||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | 27,745 | 44,146 | |||||||
Wendlar Investment & Management Group Co., Ltd | Common control under CEO | 1,180 | 1,196 | |||||||
Yangpu Capital Automobile | Partially owned by CEO through indirect shareholding | 416 | 399 | |||||||
Tianjin Dazhan Industry Co., Ltd | Partially owned by CEO through indirect shareholding | 3,750 | 3,883 | |||||||
Maoming Shengze Trading Co., Ltd | Partially owned by CEO through indirect shareholding | 157 | 2,775 | |||||||
Shaanxi Shenganda Trading Co., Ltd. | Significant influence by Long Steel Group | 13,350 | - | |||||||
Teamlink Investment Co., Ltd | Partially owned by CEO through indirect shareholding | 20,500 | - | |||||||
Others | Entities either owned or have significant influence by our affiliates or management | 524 | 507 | |||||||
Total | $ | 96,277 | $ | 87,252 | ||||||
Schedule Of Related Party Transactions, Customer Deposits Related Parties [Table Text Block] | Customer deposits – related parties: | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(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 | 7,414 | 4,467 | |||||||
Shaanxi Haiyan Trade Co, Ltd | Significant influence by Long Steel Group | 5,391 | 6,844 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 28,863 | 23,517 | |||||||
Shaanxi Junlong Rolling Co., Ltd | Investee of Long Steel Group | 16 | 57 | |||||||
Shaanxi Shenganda Trading Co., Ltd | Significant influence by Long Steel Group | 1,960 | - | |||||||
Tianwu General Steel Material Trading Co., Ltd.* | Investee of General Steel (China) | 104,522 | 97,721 | |||||||
Total | $ | 148,176 | $ | 132,616 | ||||||
*This entity is one of the Company’s trading partners and sells or purchases the steel related products to or from the Company. During three months ended March 31, 2015 and 2014, the Company received $6.7 million and $71.8 million of deposits from this entity, of which, no trading sales transactions were utilized. During the year ended December, 31 2014 and the first quarter of 2015, the Company received a total deposits of RMB 600 million (approximately $104.0 million) from this entity. The deposits are refundable. | ||||||||||
Schedule Of Related Party Transactions, Deposits Due To Sales Representatives [Table Text Block] | Deposits due to sales representatives – related parties | |||||||||
Name of related parties | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Hancheng Haiyan Trade Co., Ltd | Significant influence by Long Steel Group | $ | 652 | $ | 652 | |||||
Gansu Yulong Trading Co., Ltd. | Significant influence by Long Steel Group | 1,076 | 1,075 | |||||||
Long Steel Group | Noncontrolling shareholder of Longmen Joint Venture | 196 | 196 | |||||||
Shaanxi Yuchang Trading Co., Ltd | Significant influence by Long Steel Group | 587 | 586 | |||||||
Shaanxi Junlong Rolling Co., Ltd. | Investee of Long Steel Group | 42 | - | |||||||
Total | $ | 2,553 | $ | 2,509 | ||||||
Schedule Of Related Party Transactions, Long Term Loans Related Parties [Table Text Block] | Long-term loans – related party: | |||||||||
Name of related party | Relationship | March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | (in thousands) | |||||||||
Shaanxi Steel | Majority shareholder of Long Steel Group | $ | 352,850 | $ | 339,549 | |||||
Total | $ | 352,850 | $ | 339,549 | ||||||
Schedule Of Related Party Transactions, Deferred Lease Income [Table Text Block] | Deferred lease income | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Beginning balance | $ | 74,889 | $ | 77,444 | ||||||
Less: Lease income realized | -544 | -2,176 | ||||||||
Exchange rate effect | 92 | -379 | ||||||||
Ending balance | 74,437 | 74,889 | ||||||||
Current portion | -2,179 | -2,176 | ||||||||
Noncurrent portion | $ | 72,258 | $ | 72,713 | ||||||
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: | |||||||||
March 31, 2015 | December 31, 2014 | |||||||||
(in thousands) | (in thousands) | |||||||||
Machinery | $ | 603,618 | $ | 602,878 | ||||||
Less: accumulated depreciation | -112,298 | -105,001 | ||||||||
Carrying value of leased assets | $ | 491,320 | $ | 497,877 | ||||||
Commitment_and_contingencies_T
Commitment and contingencies (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 March 31, 2015 is as follows: | ||||||
Year ending March 31, | Minimum lease payment | ||||||
(in thousands) | |||||||
2016 | $ | 2,126 | |||||
2017 | 1,946 | ||||||
2018 | 1,885 | ||||||
2019 | 1,206 | ||||||
2020 | 1,206 | ||||||
Years after | 40,152 | ||||||
Total minimum payments required | $ | 48,521 | |||||
Schedule of Guarantor Obligations [Table Text Block] | As of March 31, 2015, Longmen Joint Venture provided guarantees to related parties’ and third parties’ bank loans, including lines of credit and others, amounting to $55.4 million. | ||||||
Nature of guarantee | Guarantee | Guaranty Due Date | |||||
amount | |||||||
(In thousands) | |||||||
Line of credit | $ | 52,274 | Various from April 2015 to August 2017 | ||||
Financing by the rights of goods delivery in future | 3,099 | Jun-15 | |||||
Total | $ | 55,373 | |||||
Schedule Of Parties Being Guaranteed [Table Text Block] | Name of parties being guaranteed | Guarantee amount | Guaranty Due Date | ||||
(In thousands) | |||||||
Long Steel Group | $ | 19,654 | Various from April to September 2015 | ||||
Shaanxi Haiyan Coke Group Co., Ltd. | 13,048 | Sep-15 | |||||
Long Steel Group Fuping Rolling Steel Co., Ltd | 3,099 | Jun-15 | |||||
Xi’an Laisheng Logistics Co., Ltd | 3,262 | May-15 | |||||
Gansu Yulong Trading Co., Ltd | 16,310 | Aug-17 | |||||
Total | $ | 55,373 | |||||
Segments_Tables
Segments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following represents results of division operations for three months ended March 31, 2015 and 2014: | |||||||
(In thousands) | ||||||||
Sales: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 328,158 | $ | 594,014 | ||||
Maoming Hengda | 6 | 36 | ||||||
Baotou Steel Pipe Joint Venture | - | 162 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | - | 53 | ||||||
Total sales | 328,164 | 594,265 | ||||||
Interdivision sales | - | -54 | ||||||
Consolidated sales | $ | 328,164 | $ | 594,211 | ||||
Gross profit (loss): | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -32,147 | $ | -22,219 | ||||
Maoming Hengda | - | 24 | ||||||
Baotou Steel | - | -23 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | - | -343 | ||||||
Total gross loss | -32,147 | -22,561 | ||||||
Interdivision gross profit | - | - | ||||||
Consolidated gross loss | $ | -32,147 | $ | -22,561 | ||||
Income (loss) from operations: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -53,498 | $ | -39,294 | ||||
Maoming Hengda | -561 | -522 | ||||||
Baotou Steel | - | -44 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | -734 | -2,566 | ||||||
Total loss from operations | -54,793 | -42,426 | ||||||
Reconciling item (1) | -919 | -1,237 | ||||||
Consolidated loss from operations | $ | -55,712 | $ | -43,663 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | -42,405 | $ | -38,034 | ||||
Maoming Hengda | -666 | -537 | ||||||
Baotou Steel | - | -35 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | -1,163 | -3,843 | ||||||
Total net loss attributable to General Steel Holdings, Inc. | -44,234 | -42,449 | ||||||
Reconciling item (1) | -919 | -1,115 | ||||||
Consolidated net loss attributable to General Steel Holdings, Inc. | $ | -45,153 | $ | -43,564 | ||||
Depreciation, amortization and depletion: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 24,186 | $ | 23,530 | ||||
Maoming Hengda | 310 | 304 | ||||||
Baotou Steel | - | 62 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 668 | 450 | ||||||
Consolidated depreciation, amortization and depletion | $ | 25,164 | $ | 24,346 | ||||
Finance/interest expenses: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 19,148 | $ | 26,990 | ||||
Maoming Hengda | - | - | ||||||
Baotou Steel | - | 1 | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 1,421 | 1,609 | ||||||
Reconciling item (1) | 1 | 95 | ||||||
Consolidated interest expenses | $ | 20,570 | $ | 28,695 | ||||
Capital expenditures: | 2015 | 2014 | ||||||
Longmen Joint Venture | $ | 30,625 | $ | 56,747 | ||||
Maoming Hengda | 296 | 32 | ||||||
Baotou Steel | - | - | ||||||
General Shengyuan | - | - | ||||||
General Steel (China) | 668 | 82 | ||||||
Reconciling item (1) | - | - | ||||||
Consolidated capital expenditures | $ | 31,589 | $ | 56,861 | ||||
Total Assets as of: | March 31, 2015 | December 31, 2014 | ||||||
Longmen Joint Venture | $ | 2,310,161 | $ | 2,408,218 | ||||
Maoming Hengda | 22,555 | 25,933 | ||||||
General Shengyuan | 1,142 | - | ||||||
General Steel (China) | 249,013 | 158,606 | ||||||
Interdivision assets | -79,743 | -30,486 | ||||||
Reconciling item (2) | 3,281 | 2,953 | ||||||
Total Assets | $ | 2,506,409 | $ | 2,565,224 | ||||
-1 | Reconciling item represents income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three months ended March 31, 2015 and 2014, which are non-operating entities. | |||||||
-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 March 31, 2015 and December 31, 2014, which are non-operating entities. | |||||||
Organization_and_Operations_De
Organization and Operations (Details Textual) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 29, 2011 | Mar. 31, 2015 | 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] | ||
USD ($) | CNY | ||||||
Equity Method Investment, Ownership Percentage | 20.00% | 100.00% | 60.00% | 60.00% | |||
Iron and Steel Making Facilities | $605.80 | 3,700 | |||||
Unified Management Agreement, Percentage Of Pretax Profit | 60.00% | 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) | 3 Months Ended | |
Mar. 31, 2015 | Apr. 29, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Equity Method Investment, Ownership Percentage | 20.00% | |
General Steel Investment Co., Ltd. [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | British Virgin Islands | |
Equity Method Investment, Ownership Percentage | 100.00% | |
General Steel (China) Co., Ltd. ("General Steel (China)") [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Tianjin General Shengyuan IoT Technology Co., Ltd. (bGeneral Shengyuanb) [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 70.00% | |
Yangpu Shengtong Investment Co., Ltd. ("Yangpu Shengtong") [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 99.10% | |
Tianjin Qiu Steel Investment Co., Ltd. ("Qiu Steel") [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 98.70% | |
Longmen Joint Venture [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% |
Maoming Hengda Steel Company, Ltd. ("Maoming Hengda") [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 99.00% |
Summary_of_significant_account4
Summary of significant accounting policies (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Current assets | $899,586 | $970,409 |
Plant and equipment, net | 1,561,511 | 1,543,136 |
Total assets | 2,506,409 | 2,565,224 |
Total liabilities | -3,143,314 | -3,127,349 |
Variable Interest Entities and Subsidiary [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Current assets | 726,110 | 837,135 |
Plant and equipment, net | 1,557,027 | 1,537,687 |
Other noncurrent assets | 27,024 | 33,396 |
Total assets | 2,310,161 | 2,408,218 |
Total liabilities | -2,920,281 | -2,946,126 |
Net liabilities | ($610,120) | ($537,908) |
Summary_of_significant_account5
Summary of significant accounting policies (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current liabilities: | ||
Short term notes payable | $448,362 | $661,635 |
Accounts payable | 608,678 | 612,801 |
Accounts payable - related parties | 226,964 | 207,783 |
Short term loans - bank | 232,148 | 257,502 |
Short term loans - others | 51,995 | 60,717 |
Short term loans - related parties | 217,397 | 46,380 |
Other payables and accrued liabilities | 51,985 | 55,488 |
Other payables - related parties | 96,277 | 87,252 |
Customer deposits | 139,106 | 92,974 |
Customer deposits - related parties | 148,176 | 132,616 |
Deposit due to sales representatives | 19,361 | 17,871 |
Taxes payable | 9,393 | 5,201 |
Deferred lease income | 2,179 | 2,176 |
Capital lease obligations, current | 8,678 | 8,508 |
Total current liabilities | 2,263,252 | 2,251,413 |
Non-current liabilities: | ||
Long term loans - related parties | 352,850 | 339,549 |
Deferred lease income - noncurrent | 72,258 | 72,713 |
Capital lease obligations, noncurrent | 397,416 | 393,252 |
Profit sharing liability | 57,538 | 70,422 |
Total non-current liabilities | 880,062 | 875,936 |
Total liabilities of consolidated VIE | 3,143,314 | 3,127,349 |
Variable Interest Entities and Subsidiary [Member] | ||
Current liabilities: | ||
Short term notes payable | 432,052 | 638,829 |
Accounts payable | 596,221 | 605,025 |
Accounts payable - related parties | 222,595 | 205,914 |
Short term loans - bank | 191,536 | 216,940 |
Short term loans - others | 45,795 | 54,524 |
Short term loans - related parties | 209,553 | 45,710 |
Other payables and accrued liabilities | 44,286 | 47,121 |
Other payables - related parties | 69,890 | 78,615 |
Customer deposits | 129,896 | 87,372 |
Customer deposits - related parties | 43,654 | 34,895 |
Deposit due to sales representatives | 19,361 | 17,871 |
Deposit due to sales representatives - related parties | 2,553 | 2,509 |
Taxes payable | 8,192 | 4,026 |
Deferred lease income | 2,179 | 2,176 |
Capital lease obligations, current | 8,678 | 8,508 |
Intercompany payable to be eliminated | 13,778 | 20,155 |
Total current liabilities | 2,040,219 | 2,070,190 |
Non-current liabilities: | ||
Long term loans - related parties | 352,850 | 339,549 |
Deferred lease income - noncurrent | 72,258 | 72,713 |
Capital lease obligations, noncurrent | 397,416 | 393,252 |
Profit sharing liability | 57,538 | 70,422 |
Total non-current liabilities | 880,062 | 875,936 |
Total liabilities of consolidated VIE | $2,920,281 | $2,946,126 |
Summary_of_significant_account6
Summary of significant accounting policies (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Sales | $270,769,000 | $512,005,000 |
Gross loss | -32,147,000 | -22,561,000 |
Loss from operations | -55,712,000 | -43,663,000 |
Net loss attributable to controlling interest | -45,153,000 | -43,564,000 |
Variable Interest Entities and Subsidiary [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Sales | 328,158,000 | 594,014,000 |
Gross loss | -32,147,000 | -22,219,000 |
Loss from operations | -53,498,000 | -39,294,000 |
Net loss attributable to controlling interest | ($42,405,000) | ($38,034,000) |
Summary_of_significant_account7
Summary of significant accounting policies (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of Line of Credit | $142 | |
China Everbright Bank [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of Line of Credit | 19.6 | |
Repayment Date | 21-Jan-16 | [1] |
Huaxia Bank [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of Line of Credit | 24.5 | |
Repayment Date | 30-Jan-16 | [1] |
Bank Of Xian [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of Line of Credit | 16.3 | |
Repayment Date | 4-Feb-16 | [1] |
Bank Of Beijing [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of Line of Credit | $81.60 | |
Repayment Date | 14-Oct-16 | |
[1] | Management expects the lines of credit will be extended after the repayment dates. |
Summary_of_significant_account8
Summary of significant accounting policies (Details 5) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | $142 |
Company C [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 16.2 |
Vendor Financing [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 897.1 |
Vendor Financing [Member] | Company A [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 244.7 |
Financing period covered | July 30, 2014 – July 30, 2019 |
Vendor Financing [Member] | Company B [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 163.1 |
Financing period covered | January 22, 2014 – January 22, 2017 |
Vendor Financing [Member] | Company C [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | $489.30 |
Financing period covered | October 1, 2013 – March 31, 2016 |
Summary_of_significant_account9
Summary of significant accounting policies (Details 6) (Other Financing [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | $412.80 |
Company D [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 81.6 |
Financing period covered | April 22, 2014 – April 22, 2017 |
Company E [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 86.4 |
Financing period covered | April 23, 2014 – April 23, 2017 |
Company F [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 81.6 |
Financing period covered | April 22, 2014 – April 22, 2017 |
Company G [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | 81.6 |
Financing period covered | April 30, 2015 – April 30, 2018 |
Company H [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Financing Amount | $81.60 |
Financing period covered | April 30, 2015 – April 30, 2018 |
Recovered_Sheet1
Summary of significant accounting policies (Details 7) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Projected cash financing and outflows: | |||
Cash projected to be used for financing cost in the twelve months ended March 31, 2016 | $96,819,000 | ($89,616,000) | |
Scenario, Forecast [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Current liabilities over current assets (excluding deferred lease income) as of March 31, 2015 | -1,361,500,000 | ||
Projected cash financing and outflows: | |||
Cash provided by line of credit from banks | 142,000,000 | ||
Cash provided by vendor financing | 897,100,000 | ||
Cash provided by other financing | 412,800,000 | ||
Cash provided by sales representatives | 21,900,000 | ||
Cash projected to be used in operations in the twelve months ended March 31, 2016 | -39,300,000 | ||
Cash projected to be used for financing cost in the twelve months ended March 31, 2016 | -46,200,000 | ||
Net projected change in cash for the twelve months ended March 31, 2016 | $26,800,000 |
Recovered_Sheet2
Summary of significant accounting policies (Details 8) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Profit sharing liability | $57,538 | $70,422 | |
Total | 57,538 | 70,422 | 162,295 |
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 | 57,538 | 70,422 | |
Total | $57,538 | $70,422 |
Recovered_Sheet3
Summary of significant accounting policies (Details 9) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||
Beginning balance | $70,422 | $162,295 |
Change in fair value of profit sharing liability: | ||
Change in preset value of estimate of future operating profits | -16,569 | -110,589 |
Change in discount rate | 2,454 | 8,106 |
Interest expense - present value discount amortization | 1,220 | 11,544 |
Difference between the previously estimated operating results for the current period and actual results | 0 | -79 |
Exchange rate effect | 11 | -855 |
Ending balance | $57,538 | $70,422 |
Recovered_Sheet4
Summary of significant accounting policies (Details 10) | 3 Months Ended |
Mar. 31, 2015 | |
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 $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
General Steel (China) [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Original Cost | $3,870 |
Expires on | 2050 & 2053 |
Longmen Joint Venture [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Original Cost | 24,187 |
Expires on | 2048 & 2052 |
Maoming Hengda [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Original Cost | $2,706 |
Expires on | 2054 |
Recovered_Sheet6
Summary of significant accounting policies (Details 12) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||
Net investment | $16,705 | $16,823 |
Owned Percentage | 20.00% | |
Xiban Delong Powder Engineering Materials Co., Ltd.[Memebr] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Year acquired | 2007 | |
Net investment | 1,014 | 1,153 |
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 | $15,691 | $15,670 |
Owned Percentage | 32.00% | 32.00% |
Recovered_Sheet7
Summary of significant accounting policies (Details Textual) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 13, 2015 | Feb. 13, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Nov. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Apr. 29, 2011 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | ASC 605-45, Revenue Recognition [Member] | ASC 605-45, Revenue Recognition [Member] | Tianjin General Shengyuan IoT Technology Co Ltd [Member] | Tianjin General Shengyuan IoT Technology Co Ltd [Member] | China GDP [Member] | Volume Inputs [Member] | Volume Inputs [Member] | Volume Inputs [Member] | Steel Sales Price Inputs [Member] | Steel Sales Price Inputs [Member] | Steel Sales Price Inputs [Member] | Raw Material Cost Inputs [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Sales [Member] | Criteria One [Member] | Criteria Two [Member] | Criteria Three [Member] | Criteria Four [Member] | Maximum [Member] | Minimum [Member] | Mining Rights [Member] | Mining Rights [Member] | Customer One [Member] | Customer One [Member] | Customer One [Member] | Customer Two [Member] | Customer Two [Member] | One Suppliers [Member] | Vendor Financing [Member] | Company E [Member] | Company A [Member] | Company A [Member] | Company B [Member] | Company B [Member] | Company D [Member] | Company F [Member] | Company G [Member] | Company H [Member] | Company C [Member] | Company C [Member] | Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | PRC Bank [Member] | PRC Bank [Member] | US And Hongkong Bank [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] | Maoming Hengda Steel Company Ltd [Member] | Baotou Iron and Steel Group [Member] | Baotou Iron and Steel Group [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] | Baotou Steel Pipe Joint Venture [Member] | Baotou Steel Pipe Joint Venture [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | ||
USD ($) | USD ($) | USD ($) | CNY | USD ($) | Shaanxi GDP [Member] | China GDP [Member] | Accounts Payable [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | USD ($) | CNY | Sales [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales [Member] | Accounts Receivable [Member] | Supplier Concentration Risk [Member] | USD ($) | USD ($) | USD ($) | Vendor Financing [Member] | USD ($) | Vendor Financing [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Vendor Financing [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | Shareholder One [Member] | Shareholder Two [Member] | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | |||||||||||||||||||||||||
Ton | Ton | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 70.00% | 70.00% | 60.00% | 60.00% | 100.00% | 36.00% | 34.67% | 29.33% | 50.00% | 100.00% | 100.00% | 99.00% | 99.10% | 98.70% | 32.00% | 32.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Working Capital | $1,400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt To Equity Ratio | -4.9 | -5.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Related Parties | 352,850,000 | 339,549,000 | 30,100,000 | 77,600,000 | 63,400,000 | 8,300,000 | 42,700,000 | 0 | 900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vendor Financing, Variable Interest Rate | 0.05% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Amount Utilized | 39,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents Including Restricted Cash | 259,600,000 | 367,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits Assets | 600,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent, Total | 200,000 | 600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Exchange Translation Rate Balance Sheet Items | 6.13 | 6.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Exchange Average Translation Rate | 6.15 | 6.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Salvage Value, Percentage | 5.00% | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Criteria For Determination Of Nature Of Lease | The Company assesses all significant leases for purposes of classification as either operating or capital. At lease inception, if the lease meets any of the four following criteria, the Company will classify it as a capital lease; otherwise it will be treated as an operating lease: a) transfer of ownership to lessee at the end of the lease term, b) bargain purchase option, c) lease term is equal to 75% or more of the estimated economic life of the leased property, d) the present value of the minimum lease payments is 90% or more of the fair value of the leased asset | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage Of Ownership, Significant Influence | 50.00% | 20.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 10,000 | -40,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Discount Rate | 6.70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Notes Receivable Interest Income | 8,000,000 | 14,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 12.10% | 81.70% | 32.10% | 10.50% | 20.50% | 15.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite lived Intangible Asset Acquired | 12,900,000 | 2,400,000 | 15,000,000 | 24,200,000 | 148,300,000 | 3,900,000 | 23,700,000 | 2,700,000 | 16,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit Sharing Liability Fair Value Criteria | the Peoples Bank of China decreased standard bank borrowing rate across the board by 0.4%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.4% from 7.3% to 6.9%. On May 11, 2015, the Peoples Bank of China decreased the standard bank borrowing rate again across the board by 0.25%. Accordingly, the Company adjusted down the present value discount rate for profit sharing liability by 0.25% from 6.9% to 6.7% | 0.1 million reduction resulting from the Asset Pools operating results for the year ended December 31, 2014 being slightly less favorable than previously estimated as of December 31, 2013, offset by a $8.1 million loss resulting from the 0.4% reduction of the present value discount rate and a $11.5 million loss from the present value discount. | If we were to reduce the projected bank borrowings rate used to discount the liability to a present value by 1.0% and other factors remained unchanged, our profit sharing liability as of March 31, 2015 would have been $66.2 million and we would increase the loss from the change in the fair value of the profit sharing liability by $8.7 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 March 31, 2015 would have been $53.1 million and we would increase the gain from the change in the fair value of the profit sharing liability by $4.4 million | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit Sharing Liability | 110,600,000 | 57,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain Loss On Change In Fair Value Of Profit Sharing Liability | 91,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage Of Equity Interest Sold | 80.00% | 80.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds From Sale Of Equity Interest | 700,000 | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unified Management Agreement, Cost Of Asset | 2,300,000 | 14,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit | 142,000,000 | 897,100,000 | 244,700,000 | 163,100,000 | 16,200,000 | 489,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Surrender Value of Life Insurance | 10,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Related Parties | 23,143,000 | 39,734,000 | 21,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Asset Estimated Recoverable Reserve | 4,200,000 | 4,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Finite Lived Intangible Assets Expiry Term | expire in 2048 to 2052 | expire in 2050 and 2053 | expire in 2050 and 2053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreased Percentage Of Estimated Future Results | 40.00% | 0.40% | 0.25% | 3.00% | 1.40% | 0.40% | 5.60% | 4.70% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreased Percentage Of Profit Sharing | 1.75% | 7.00% | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Interest in Joint Venture | 1,600,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Goods Sold, Total | 297,565,000 | 530,744,000 | 107,700,000 | 38,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Loss | $32,147,000 | $22,561,000 | $64,994 | $288,513 | $32,147,000 | $22,219,000 | $0 | ($24,000) | $0 | $23,000 |
Loans_receivable_Details
Loans receivable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | $6,728 | $34,713 | ||
Long Steel Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | 42,569 | 36,001 | ||
Tianjin Hengying Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | 622 | [1] | 13,997 | [1] |
Tianjin Dazhan Industry Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | 0 | [1] | 14,617 | [1] |
Beijing Shenghua Xinyuan Metal Materials Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | $6,106 | $6,099 | ||
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. |
Loans_receivable_Details_Textu
Loans receivable (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Interest Income Related Party | $0.50 | $0.10 |
Long Steel Group [Member] | ||
Related Party Transaction [Line Items] | ||
Loans Receivable Maturity Date | due on demand | |
Loans Receivable Interest Rate Stated Percentage | 8.00% | |
Tianjin Hengying Trading Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Loans Receivable Maturity Date | due on demand | |
Loans Receivable Interest Rate Stated Percentage | 10.00% | |
Tianjin Dazhan Industry Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Loans Receivable Maturity Date | due on demand | |
Loans Receivable Interest Rate Stated Percentage | 10.00% | |
Beijing Shenghua Xinyuan Metal Materials Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Loans Receivable Maturity Date | due on demand | |
Loans Receivable Interest Rate Stated Percentage | 10.00% |
Accounts_receivable_including_2
Accounts receivable (including related parties), net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $11,194 | $9,804 |
Less: allowance for doubtful accounts | -508 | -483 |
Accounts Receivable, Related Parties, Current | 59,183 | 8,624 |
Less: allowance for doubtful accounts - related parties | -126 | -126 |
Net accounts receivable | $69,743 | $17,819 |
Accounts_receivable_including_3
Accounts receivable (including related parties), net (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending balance | $508 | $483 |
Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 609 | 1,053 |
Charge to expense | 25 | 368 |
Less: recovery | 0 | -8 |
Deconsolidation of Baotou Steel | 0 | -798 |
Exchange rate effect | 0 | -6 |
Ending balance | $634 | $609 |
Other_receivables_including_re2
Other receivables (including related parties), net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other receivables | $114,761 | $73,944 |
Less: allowance for doubtful accounts | -11,470 | -10,198 |
Other receivables - related parties | 23,143 | 39,734 |
Less: allowance for doubtful accounts - related parties | -64 | -64 |
Net other receivables | $126,370 | $103,416 |
Other_receivables_including_re3
Other receivables (including related parties), net (Details 1) (Other Receivables [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Other Receivables [Member] | ||
Beginning balance | $10,262 | $2,606 |
Charge to expense | 1,260 | 7,670 |
Less: recovery | -5 | -6 |
Exchange rate effect | 17 | -8 |
Ending balance | $11,534 | $10,262 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | |||
Supplies | $17,327 | $18,838 | |
Raw materials | 100,509 | 143,563 | |
Finished goods | 43,086 | 12,301 | |
Less: allowance for inventory valuation | -12,627 | -18,375 | -15,397 |
Total inventories | $148,295 | $156,327 |
Inventories_Details_1
Inventories (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Beginning balance | $18,375 | $15,397 |
Addition | 12,581 | 18,362 |
Less: write-off | -18,329 | -15,311 |
Exchange rate effect | 0 | -73 |
Ending balance | $12,627 | $18,375 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Inventory Valuation Reserves | $12,627 | $18,375 | $15,397 |
Advances_on_inventory_purchase2
Advances on inventory purchases (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Advances on inventory purchases [Line Items] | ||
Advances on inventory purchases | $51,944 | $76,320 |
Less: allowance for doubtful accounts | -2,504 | -2,501 |
Advances on inventory purchases - related parties | 95,757 | 45,617 |
Net advances on inventory purchases | $145,197 | $119,436 |
Advances_on_inventory_purchase3
Advances on inventory purchases (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Advances on inventory purchases [Line Items] | ||
Ending balance | $2,504 | $2,501 |
Advances On Inventory Purchases [Member] | ||
Advances on inventory purchases [Line Items] | ||
Beginning balance | 2,501 | 105 |
Charge to expense | 0 | 2,395 |
Exchange rate effect | 3 | 1 |
Ending balance | $2,504 | $2,501 |
Plant_and_equipment_net_Detail
Plant and equipment, net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and improvements | $437,477 | $279,776 |
Machinery | 887,292 | 669,427 |
Machinery under capital lease | 627,505 | 626,735 |
Transportation and other equipment | 23,101 | 22,765 |
Construction in progress | 9,835 | 342,660 |
Subtotal | 1,985,210 | 1,941,363 |
Less: accumulated depreciation | -423,699 | -398,227 |
Total | $1,561,511 | $1,543,136 |
Plant_and_equipment_net_Detail1
Plant and equipment, net (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $9,835 | $342,660 |
Construction In Progress Estimated Additional Cost | 9,927 | |
Restructuring of ventilation system [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 2 | |
Construction Completion Date | 31-Dec-15 | |
Construction In Progress Estimated Additional Cost | 979 | |
Energy management system [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 326 | |
Construction Completion Date | 30-Apr-15 | |
Construction In Progress Estimated Additional Cost | 1,925 | |
Reconstruction Of Miscellaneous Factory Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 6,959 | |
Construction Completion Date | 31-Dec-15 | |
Construction In Progress Estimated Additional Cost | 7,023 | |
Project materials [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 2,145 | |
Construction In Progress Estimated Additional Cost | 0 | |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 403 | |
Construction In Progress Estimated Additional Cost | $0 |
Plant_and_equipment_net_Detail2
Plant and equipment, net (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Machinery | $627,505 | $626,735 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Machinery | 627,505 | 626,735 |
Less: accumulated depreciation | -116,075 | -107,782 |
Carrying value of leased assets | $511,430 | $518,953 |
Plant_and_equipment_net_Detail3
Plant and equipment, net (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $24.90 | $24.10 |
Lease Expiration Date | 30-Apr-31 | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | $8.10 | $7.90 |
Intangible_assets_net_Details
Intangible assets, net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $34,272 | $34,231 |
Less: Accumulated amortization | -11,387 | -11,271 |
Intangible assets, net | 22,885 | 22,960 |
Land use rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 30,763 | 30,726 |
Less: Accumulated amortization | -9,308 | -9,127 |
Mining right [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,450 | 2,447 |
Less: Accumulated amortization | -1,339 | -1,431 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,059 | 1,058 |
Less: Accumulated amortization | ($740) | ($713) |
Intangible_assets_net_Details_
Intangible assets, net (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated amortization and depletion expenses, March 31, 2016 | $946 | |
Estimated amortization and depletion expenses, March 31, 2017 | 946 | |
Estimated amortization and depletion expenses, March 31, 2018 | 946 | |
Estimated amortization and depletion expenses, March 31, 2019 | 946 | |
Estimated amortization and depletion expenses, March 31, 2020 | 946 | |
Estimated amortization and depletion expenses, Thereafter | 18,155 | |
Estimated amortization and depletion expenses, Total | 22,885 | 22,960 |
Gross carrying amount, March 31, 2016 | 21,939 | |
Gross carrying amount, March 31, 2017 | 20,993 | |
Gross carrying amount, March 31, 2018 | 20,047 | |
Gross carrying amount, March 31, 2019 | 19,101 | |
Gross carrying amount, March 31, 2020 | 18,155 | |
Gross carrying amount, Thereafter | $0 |
Intangible_assets_net_Details_1
Intangible assets, net (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 32 years 6 months | ||
Amortization of Intangible Assets | $200,000 | $200,000 | |
Depletion | 40,000 | 10,000 | |
Finite-Lived Intangible Assets, Gross | $34,272,000 | $34,231,000 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short term notes payable | $448,362 | $661,635 |
General Steel China Notes Payable To China Agricultural Bank [Member] | ||
Debt Instrument [Line Items] | ||
Short term notes payable | 16,310 | 22,806 |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | ||
Debt Instrument [Line Items] | ||
Short term notes payable | $432,052 | $638,829 |
Debt_Details_1
Debt (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short term loans - bank | $232,148 | $257,502 |
General Steel China Loans From Various Banks In China [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - bank | 40,612 | 40,562 |
Longmen Joint Venture Loans from various banks in China [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - bank | $191,536 | $216,940 |
Debt_Details_2
Debt (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short term loans - others | $51,995 | $60,717 |
Longmen Joint Venture Loans from various unrelated companies and individuals [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - others | 37,337 | 16,999 |
Longmen Joint Venture Loans from financing sales [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - others | 8,458 | 37,525 |
Maoming Hengda Loans from one unrelated parties and one related party [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - others | $6,200 | $6,193 |
Debt_Details_3
Debt (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | $217,397 | $46,380 |
General Steel China Loans From Yangpu Capital Automobile [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 670 | 670 |
General Steel China Loans From Tianjin Dazhan Industry Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 7,174 | 0 |
Longmen Joint Venture Loan from Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 128 | 128 |
Longmen Joint Venture Loan From Shaanxi Steel Group [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 91,173 | 0 |
Longmen Joint Venture Loan from Shaanxi Steel Group Hanzhong Steel Co., Ltd. [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 8,155 | 0 |
Longmen Joint Venture Loan from Long Steel Group [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 8,155 | 0 |
Longmen Joint Venture Loan from Tianjin General Qiugang Pipe Co., Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | 3,262 | 0 |
Longmen Joint Venture Loans From Financing Sales [Member] | ||
Debt Instrument [Line Items] | ||
Short term loans - related parties | $98,680 | $45,582 |
Debt_Details_4
Debt (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Longmen Joint Venture: Loans from Shaanxi Steel Group | $352,850 | $339,549 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Percentage Of Transaction Fee | 0.05% | ||
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | $222,200,000 | $339,400,000 | |
Restricted Notes Receivable Guarantee For Notes Payable | 1,600,000 | 0 | |
Short Term Borrowings, Default | 4,700,000 | 4,700,000 | |
Financing Sales | 118,400,000 | 230,500,000 | |
Financial Services Costs | 700,000 | 900,000 | |
Interest Costs Capitalized | 0 | 600,000 | |
Interest Expense, Debt | 7,400,000 | 9,500,000 | |
Debt Instrument, Collateral Amount | 110,100,000 | 96,900,000 | |
General Steel China Notes Payable To Various Banks In China [Member] | |||
Debt Instrument [Line Items] | |||
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 8,200,000 | 14,700,000 | |
Debt, Weighted Average Interest Rate | 7.30% | 7.20% | |
Longmen Joint Venture Loans From Various Unrelated Companies and Individuals [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Maturity Dates | various dates from May to September 2015 | ||
Debt, Weighted Average Interest Rate | 10.20% | 5.70% | |
Longmen Joint Venture Notes Payable To Various Banks In China [Member] | |||
Debt Instrument [Line Items] | |||
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 214,000,000 | 324,700,000 | |
Restricted Notes Receivable Guarantee For Notes Payable | 1,600,000 | 0 | |
Debt, Weighted Average Interest Rate | 7.80% | 7.10% | |
Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 12.00% | ||
Repayments of Debt, Maturing in More than Three Months | 9,489,000 | ||
General Steel China Loans From Tianjin Dazhan Industry Co Ltd [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 10.00% | ||
General Steel China Loans From Yangpu Capital Automobile [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 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% | ||
Longmen Joint Venture Loans from various banks in China [Member] | |||
Debt Instrument [Line Items] | |||
Restricted Cash and Cash Equivalents Guarantee For Notes Payable | 27,300,000 | 16,300,000 | |
Restricted Notes Receivable Guarantee For Notes Payable | 66,200,000 | 111,800,000 | |
Longmen Joint Venture's [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Maturity Dates | various dates from May to October 2015 | ||
General Steel China's Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt To Asset Ratio | 94.00% | 90.80% | |
Longmen Joint Venture Loans From Tianjin General Qiugang Pipe Co [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 5.40% | ||
Longmen Joint Venture Loan from Long Steel Group [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Debt, Maturing in More than Three Months | $4,924,000 | ||
Maximum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 12.00% | ||
Maximum [Member] | Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 8.00% | ||
Maximum [Member] | Longmen Joint Venture Loans From Shaanxi Steel [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 8.00% | ||
Maximum [Member] | Three General Steel China's bank loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt To Asset Ratio | 70.00% | ||
Maximum [Member] | Short Term Loans Interest Rates Ranging 5.0% to 24.0% [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 24.00% | ||
Minimum [Member] | Longmen Joint Venture Loans From Financing Sales [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 4.60% | ||
Minimum [Member] | Longmen Joint Venture Loans From Shaanxi Steel Group [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 5.60% | ||
Minimum [Member] | Longmen Joint Venture Loans From Shaanxi Steel [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 6.90% | ||
Minimum [Member] | Two General Steel Chinas Bank Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt To Asset Ratio | 70.00% | ||
Minimum [Member] | Short Term Loans Interest Rates Ranging 5.0% to 24.0% [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 5.00% |
Customer_deposits_Details_Text
Customer deposits (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Customer Deposits [Line Items] | ||
Customer Deposits Including Related Parties | $287.30 | $225.60 |
Related Party [Member] | ||
Customer Deposits [Line Items] | ||
Customer Deposits Including Related Parties | $148.20 | $132.60 |
Deposits_due_to_sales_represen1
Deposits due to sales representatives (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Deposits Due To Sales Representative Including Related Parties | $21.90 | $20.40 |
Supplemental_disclosure_of_cas1
Supplemental disclosure of cash flow information (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Disclosure Of Cash Flow Information [Line Items] | ||
Interest Paid, Net | $2.60 | $5.70 |
Income Taxes Paid | 0.1 | 0.01 |
Dividend Receivables Value | 0.2 | |
Disposal Of Equipment Value | 0.01 | |
Inventory Productions, Equipment Conversion | 0.03 | 0.05 |
Inventory Utilized In Plant and Equipment Construction | 0.9 | 1 |
Repayment Of Accounts Payable Related Party | 5.9 | |
Construction in Progress Expenditures Incurred but Not yet Paid | 2.8 | 23.4 |
Notes Receivable Converted To Cash | $23.80 | $47.70 |
Deferred_lease_income_Details_
Deferred lease income (Details Textual) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2010 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | |
USD ($) | 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 | 29,900,000 | 183,100,000 | ||||||||||
Deferred Revenue Leases Reimbursement For Trial Production Costs | 14,600,000 | 89,300,000 | 14,600,000 | 89,500,000 | ||||||||
Deferred Revenue Leases Deferred Depreciation Cost Free Use Period | 7,200,000 | 43,900,000 | ||||||||||
Deferred Revenue Leases Lease Income Realized | 543,000 | 546,000 | 2,176,000 | |||||||||
Deferred Revenue, Leases, Net, Total | 74,437,000 | 74,889,000 | 77,444,000 | |||||||||
Deferred Revenue, Leases, Current | $2,179,000 | $2,176,000 |
Capital_lease_obligations_Deta
Capital lease obligations (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Capital Lease Obligation Minimum Lease Payments, 2016 | $10,665 |
Capital Lease Obligation Minimum Lease Payments, 2017 | 175,427 |
Capital Lease Obligation Minimum Lease Payments, 2018 | 33,657 |
Capital Lease Obligation Minimum Lease Payments,2019 | 30,685 |
Capital Lease Obligation Minimum Lease Payments,2020 | 29,621 |
Capital Lease Obligation Minimum Lease Payments, Thereafter | 317,780 |
Capital Lease Obligation Minimum Lease Payments, Total minimum lease payments | 597,835 |
Capital Lease Obligation Minimum Lease Payments, Ending balance | 406,094 |
Capital Lease Obligation Minimum Lease Payments, Less: amounts representing interest | ($191,741) |
Capital_lease_obligations_Deta1
Capital lease obligations (Details Textual) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 29, 2011 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Shaanxi Iron and Steel Group [Member] | Energy Saving Equipment [Member] | Energy Saving Equipment [Member] | |
USD ($) | CNY | USD ($) | 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% | |||||
Unified Management Agreement, Cost Of Asset | $2.30 | 14.6 | |||||
Interest Expense On Minimum Lease Payments | 5.2 | 5.4 | |||||
Capital Lease Obligations Incurred | $23.90 | 146.5 |
Other_income_expense_Details_T
Other income (expense) (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Capital Leases, Income Statement, Lease Revenue, Total | $0.50 | $0.50 |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Taxes [Line Items] | ||
Current | $30 | $5 |
Deferred | 0 | 0 |
Total provision for income taxes | $30 | $5 |
Taxes_Details_1
Taxes (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Taxes [Line Items] | ||
Beginning balance | $114,820 | $97,569 |
Current period addition | 10,040 | 18,951 |
Current period reversal | -1,317 | -614 |
Deconsolidation of Baotou Steel | 0 | -625 |
Exchange difference | 173 | -461 |
Ending balance | $123,716 | $114,820 |
Taxes_Details_2
Taxes (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Taxes [Line Items] | ||
VAT taxes payable | $6,847 | $3,147 |
Income taxes payable | 209 | 243 |
Misc. taxes | 2,337 | 1,811 |
Totals | $9,393 | $5,201 |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes [Line Items] | ||||
Percentage Of Deferred Tax Asset | 100.00% | |||
Value Added Tax Receivable | $2,000,000 | $3,200,000 | ||
Value Added Tax On Sales | 139,100,000 | 152,900,000 | ||
Value Added Tax On Purchases | 132,200,000 | 151,900,000 | ||
Deferred Tax Assets, Valuation Allowance | 123,716,000 | 114,820,000 | 97,569,000 | |
Tax Initiative Extension Period | 10 years | |||
Operating Loss Carryforwards, Date Expiration | The Groups losses carried forward of $665.9 million will begin to expire in 2016. | |||
Tax Rate Concession Percentage | 15.00% | |||
Deferred Tax Assets Valuation Period | 5 years | |||
UNITED STATES [Member] | ||||
Taxes [Line Items] | ||||
Percentage Of Deferred Tax Asset | 100.00% | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 0 | |||
Deferred Tax Assets, Valuation Allowance | $1,100,000 | |||
Operating Loss Carryforwards, Date Expiration | The net operating loss carry forwards for United States income taxes amounted to $3.2 million, which may be available to reduce future years taxable income. These carry forwards will expire, if not utilized, starting from 2027 through 2034. | |||
Subsidiaries [Member] | ||||
Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | |||
Subsidiaries [Member] | Longmen Joint Venture [Member] | ||||
Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 15.00% | |||
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Machinery | $627,505 | $626,735 |
Shaanxi Coal and Shaanxi Steel [Member] | ||
Related Party Transaction [Line Items] | ||
Machinery | 603,618 | 602,878 |
Less: accumulated depreciation | -112,298 | -105,001 |
Carrying value of leased assets | $491,320 | $497,877 |
Related_party_transactions_and3
Related party transactions and balances (Details 1) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | $57,395 | $82,206 | ||
Long Steel Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |||
Revenue from Related Parties | 11,270 | 44,800 | ||
Shaanxi Haiyan Trade Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Significant influence by Long Steel Group | [1] | ||
Revenue from Related Parties | 9,578 | [1] | 15 | [1] |
Shaanxi Shenganda Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Significant influence by Long Steel Group | |||
Revenue from Related Parties | 15,998 | 20,736 | ||
Shaanxi Steel [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Majority shareholder of Long Steel Group | |||
Revenue from Related Parties | 481 | 471 | ||
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 | 20,068 | 4,969 | ||
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 | 0 | 6,618 | ||
Shaanxi Junlong Rolling Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Investee of Long Steel Group | |||
Revenue from Related Parties | $0 | $4,597 | ||
[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 | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | $102,469 | $259,004 | ||
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 | 5,993 | 151,772 | ||
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 | 48,147 | 44,088 | ||
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 | 1,072 | 904 | ||
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 | 1,505 | 0 | ||
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 | 5,960 | 6,660 | ||
Tianwu General Steel Material Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Investee of General Steel (China) | [1] | ||
Related Party Transaction, Purchases from Related Party | 36,174 | 23,339 | ||
Tianjin General Qiugang Pipe Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [2],[3] | ||
Related Party Transaction, Purchases from Related Party | 3,287 | [3] | 4,275 | [3] |
Tianjin Hengying Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [4] | ||
Related Party Transaction, Purchases from Related Party | 0 | 27,919 | ||
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 | $331 | $47 | ||
[1] | This entity is one of the Companybs trading partners and sells or purchases the steel related products to or from the Company. During three months ended March 31, 2015 and 2014, the Company received $6.7 million and $71.8 million of deposits from this entity, of which, no trading sales transactions were utilized. During the year ended December, 31 2014 and the first quarter of 2015, the Company received a total deposits of RMB 600 million (approximately $104.0 million) from this entity. The deposits are refundable. | |||
[2] | During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit B related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | |||
[3] | The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | |||
[4] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. |
Related_party_transactions_and5
Related party transactions and balances (Details 3) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Loans receivable - related parties | $6,728 | $34,713 | ||
Tianjin Hengying Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | ||
Loans receivable - related parties | 622 | [1] | 13,997 | [1] |
Tianjin Dazhan Industry Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | ||
Loans receivable - related parties | 0 | [1] | 14,617 | [1] |
Beijing Shenghua Xinyuan Metal Materials Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |||
Loans receivable - related parties | $6,106 | $6,099 | ||
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. |
Related_party_transactions_and6
Related party transactions and balances (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Accounts Receivable, Related Parties, Current | $59,183 | $8,624 |
Long Steel Group [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |
Accounts Receivable, Related Parties, Current | 151 | 148 |
Shaanxi Coal and Chemical Industry Group Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Shareholder of Shaanxi Steel | |
Accounts Receivable, Related Parties, Current | 56,982 | 0 |
Shaanxi Shenganda Trading Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Significant influence by Long Steel Group | |
Accounts Receivable, Related Parties, Current | 0 | 5,715 |
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 | 2,031 | 2,101 |
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 | $641 |
Related_party_transactions_and7
Related party transactions and balances (Details 5) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Other receivables - related parties | $23,143 | $39,734 | ||
Long Steel Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |||
Other receivables - related parties | 1,219 | 165 | ||
Shaanxi Steel [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Majority shareholder of Long Steel Group | |||
Other receivables - related parties | 1,141 | 35,669 | ||
Tianjin General Quigang Pipe Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | ||
Other receivables - related parties | 17,939 | [1] | 1,237 | [1] |
Tianjin Hengying Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [2] | ||
Other receivables - related parties | 927 | 721 | ||
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 | 466 | 313 | ||
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 | 1,101 | 1,101 | ||
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 | $350 | $528 | ||
[1] | Full balance has been repaid subsequently to March 31, 2015 by this entity. | |||
[2] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. |
Related_party_transactions_and8
Related party transactions and balances (Details 6) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Advances on inventory purchase - related parties | $95,757 | $45,617 | ||
Long Steel Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |||
Advances on inventory purchase - related parties | 7,269 | 7,139 | ||
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 | 27,549 | ||
Tianjin Hengying Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | ||
Advances on inventory purchase - related parties | 3,873 | 3,807 | ||
Tianjin General Qiugang Pipe Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [2],[3] | ||
Advances on inventory purchase - related parties | 84,547 | [2] | 7,091 | [2] |
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 | $68 | $31 | ||
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. | |||
[2] | During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit B related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | |||
[3] | The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. |
Related_party_transactions_and9
Related party transactions and balances (Details 7) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | $226,964 | $207,783 | |
Hancheng Haiyan Coking Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Noncontrolling shareholder of Long Steel Group | ||
Accounts payable - related parties | 77,617 | 64,276 | |
Long Steel Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | ||
Accounts payable - related parties | 94,006 | 79,886 | |
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 | 14,828 | 23,726 | |
Tianjin Dazhan Industry Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Accounts payable - related parties | 870 | 869 | |
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 | 10,829 | 11,035 | |
Tianjin Hengying Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Accounts payable - related parties | 0 | 1 | |
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 | 1,002 | 746 | |
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 | 28 | 36 | |
Tianjin General Qiugang Pipe Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [2],[3] | |
Accounts payable - related parties | 0 | 2,462 | |
Tianwu General Steel Material Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Investee of General Steel (China) | [4] | |
Accounts payable - related parties | 7,986 | 22,916 | |
Maoming Shengze Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | ||
Accounts payable - related parties | 4,274 | 1,773 | |
Shaanxi Steel [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Majority shareholder of Long Steel Group | ||
Accounts payable - related parties | 683 | 0 | |
Shaanxi Shenganda Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Significant influence by Long Steel Group | ||
Accounts payable - related parties | 14,834 | 0 | |
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 | $7 | $57 | |
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. | ||
[2] | During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit B related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | ||
[3] | The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. | ||
[4] | This entity is one of the Companybs trading partners and sells or purchases the steel related products to or from the Company. During three months ended March 31, 2015 and 2014, the Company received $6.7 million and $71.8 million of deposits from this entity, of which, no trading sales transactions were utilized. During the year ended December, 31 2014 and the first quarter of 2015, the Company received a total deposits of RMB 600 million (approximately $104.0 million) from this entity. The deposits are refundable. |
Recovered_Sheet8
Related party transactions and balances (Details 8) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Short term loans - related parties | $217,397 | $46,380 | |
Shaanxi Steel Group Hanzhong Steel Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Subsidiary of Shaanxi Steel | ||
Short term loans - related parties | 8,155 | 0 | |
Shaanxi Steel [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Majority shareholder of Long Steel Group | ||
Short term loans - related parties | 91,173 | 0 | |
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 | 68,754 | 34,460 | |
Long Steel Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | ||
Short term loans - related parties | 30,533 | 0 | |
Tianjin Hengying Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Short term loans - related parties | 7,610 | 3,039 | |
Tianjin General Qiugang Pipe Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [2],[3] | |
Short term loans - related parties | 3,262 | 0 | |
Tianjin Dazhan Industry Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Short term loans - related parties | 7,240 | 8,211 | |
Yangpu Capital Automobile [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | ||
Short term loans - related parties | $670 | $670 | |
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. | ||
[2] | During the three months ended March 31, 2015, the Company entered into a purchase agreement with this entity to purchase steel related products to resell to Tianwu General Steel Material Trading Co., Ltd. (see Note 19 (h) Customer deposit B related parties). The term of the agreement is expected to be fulfilled within three months after deposits were made. The purchase advances are refundable. For the three months ended March 31, 2015, the Company made $61.9 million of purchase advances of which $3.3 million were utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2015, the Company sold approximately $16.0 million to this entity. For the three months ended March 31, 2014, the Company made $29.5 million of purchase advances of which $4.3 million was utilized. The entity also acts as a customer in the Companybs trading transactions. During the three months ended March 31, 2014, the Company sold $1.4 million to this entity. | ||
[3] | The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. |
Recovered_Sheet9
Related party transactions and balances (Details 9) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Other payables - related parties | $96,277 | $87,252 | |
Tianjin Hengying Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Other payables - related parties | 378 | 378 | |
Long Steel Group [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | ||
Other payables - related parties | 28,277 | 33,968 | |
Shaanxi Steel [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Majority shareholder of Long Steel Group | ||
Other payables - related parties | 27,745 | 44,146 | |
Wendlar Investment Management Group Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Common control under CEO | ||
Other payables - related parties | 1,180 | 1,196 | |
Yangpu Capital Automobile [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | ||
Other payables - related parties | 416 | 399 | |
Tianjin Dazhan Industry Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | [1] | |
Other payables - related parties | 3,750 | 3,883 | |
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 | 157 | 2,775 | |
Shaanxi Shenganda Trading Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Significant influence by Long Steel Group | ||
Other payables - related parties | 13,350 | 0 | |
Teamlink Investment Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Relationship | Partially owned by CEO through indirect shareholding | ||
Other payables - related parties | 20,500 | 0 | |
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 | $524 | $507 | |
[1] | The Company reclassified advances for inventory purchase - related parties related to trading transactions, as noted in note 2(g), to loans receivable - related parties due to their interest-bearing nature. |
Recovered_Sheet10
Related party transactions and balances (Details 10) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Customer deposits - related parties | $148,176 | $132,616 | ||
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 | 7,414 | 4,467 | ||
Shaanxi Haiyan Trade Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Significant influence by Long Steel Group | [1] | ||
Customer deposits - related parties | 5,391 | 6,844 | ||
Long Steel Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |||
Customer deposits - related parties | 28,863 | 23,517 | ||
Shaanxi Junlong Rolling Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Investee of Long Steel Group | |||
Customer deposits - related parties | 16 | 57 | ||
Shaanxi Shenganda Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Significant influence by Long Steel Group | |||
Customer deposits - related parties | 1,960 | 0 | ||
Tianwu General Steel Material Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Relationship | Investee of General Steel (China) | [2] | ||
Customer deposits - related parties | $104,522 | [2] | $97,721 | [2] |
[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. | |||
[2] | This entity is one of the Companybs trading partners and sells or purchases the steel related products to or from the Company. During three months ended March 31, 2015 and 2014, the Company received $6.7 million and $71.8 million of deposits from this entity, of which, no trading sales transactions were utilized. During the year ended December, 31 2014 and the first quarter of 2015, the Company received a total deposits of RMB 600 million (approximately $104.0 million) from this entity. The deposits are refundable. |
Recovered_Sheet11
Related party transactions and balances (Details 11) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Deposit due to sales representatives - related parties | $2,553 | $2,509 |
Hancheng Haiyan Coking Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Noncontrolling shareholder of Long Steel Group | |
Deposit due to sales representatives - related parties | 652 | 652 |
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 | 1,076 | 1,075 |
Long Steel Group [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Noncontrolling shareholder of Longmen Joint Venture | |
Deposit due to sales representatives - related parties | 196 | 196 |
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 | 587 | 586 |
Shaanxi Junlong Rolling Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Investee of Long Steel Group | |
Deposit due to sales representatives - related parties | $42 | $0 |
Recovered_Sheet12
Related party transactions and balances (Details 12) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Long-term loans - related party | $352,850 | $339,549 |
Shaanxi Steel [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Majority shareholder of Long Steel Group | |
Long-term loans - related party | $352,850 | $339,549 |
Recovered_Sheet13
Related party transactions and balances (Details 13) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | |||
Beginning balance | $74,889 | $77,444 | $77,444 |
Less: Lease income realized | -543 | -546 | -2,176 |
Exchange rate effect | 92 | -379 | |
Ending balance | 74,437 | 74,889 | |
Current portion | -2,179 | -2,176 | |
Noncurrent portion | $72,258 | $72,713 |
Recovered_Sheet14
Related party transactions and balances (Details Textual) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
USD ($) | USD ($) | USD ($) | CNY | Shaanxi Steel [Member] | Shaanxi Steel [Member] | Tianwu General Steel Material Trading Co Ltd [Member] | Tianwu General Steel Material Trading Co Ltd [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | |||||
Related Party Transaction [Line Items] | ||||||||
Related Party Loans Secured | $49 | $82.30 | ||||||
Capital Leases, Income Statement, Lease Revenue | 0.5 | 0.5 | 0.5 | 0.5 | ||||
Cost Of Goods Sold From Related Parties | 91 | 33.3 | ||||||
Payment For Purchase Advances | 61.9 | 29.5 | ||||||
Inventory Sold Under Purchase Agreement | 16 | 1.4 | ||||||
Proceeds From Related Party Deposits | 6.7 | 71.8 | 104 | 600 | ||||
Purchase Obligation | $3.30 | $4.30 |
Retirement_plan_Details_Textua
Retirement plan (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Contribution Plan Employer Matching Contribution Percent Criteria One | 20.00% | |
Defined Contribution Plan Employer Matching Contribution Percent Criteria Two | 12.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 8.00% | |
Pension Expense | $2.80 | $2.80 |
Statutory_reserves_Details_Tex
Statutory reserves (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Contributions To Statutory Reserve Fund Percentage | 10.00% | |
Maximum Percentage Of Reserve Fund Balance | 50.00% | |
Minimum Percentage Of Reserve Fund Balance | 25.00% | |
Contributions To Special Reserve | $0.20 | $0.30 |
Utilization Of Special Reserve | $0.04 | $0.10 |
Commitment_and_contingencies_D
Commitment and contingencies (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
Minimum lease payment, 2016 | $2,126 |
Minimum lease payment, 2017 | 1,946 |
Minimum lease payment, 2018 | 1,885 |
Minimum lease payment, 2019 | 1,206 |
Minimum lease payment, 2020 | 1,206 |
Minimum lease payment, Years after | 40,152 |
Total minimum payments required | $48,521 |
Commitment_and_contingencies_D1
Commitment and contingencies (Details 1) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | $55,373 |
Line of credit [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | 52,274 |
Guaranty Obligations, Guaranty Due Date | Various from April 2015 to August 2017 |
Financing by the rights of goods delivery in future [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | $3,099 |
Guaranty Obligations, Guaranty Due Date | Jun-15 |
Commitment_and_contingencies_D2
Commitment and contingencies (Details 2) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | $55,373 |
Xi'an Laisheng Logistics Co., Ltd [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | 3,262 |
Guaranty Obligations, Guaranty Due Date | May-15 |
Gansu Yulong Trading Co Ltd [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | 16,310 |
Guaranty Obligations, Guaranty Due Date | Aug-17 |
Long Steel Group Fuping Rolling Steel Co., Ltd [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | 3,099 |
Guaranty Obligations, Guaranty Due Date | Jun-15 |
Long Steel Group [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | 19,654 |
Guaranty Obligations, Guaranty Due Date | Various from April to September 2015 |
Shaanxi Haiyan Coke Group Co., Ltd | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Current Carrying Value | $13,048 |
Guaranty Obligations, Guaranty Due Date | Sep-15 |
Commitment_and_contingencies_D3
Commitment and contingencies (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Commitment And Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $0.10 | $0.90 |
Contractual Obligation | 55.4 | |
Subsequent Event [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contractual Obligation | $9.90 |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||||
Sales: | ||||||
TOTAL SALES | $328,164,000 | $594,211,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | -32,147,000 | -22,561,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -55,712,000 | -43,663,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -45,153,000 | -43,564,000 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 25,164,000 | 24,346,000 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 20,570,000 | 28,695,000 | ||||
Capital expenditures: | ||||||
Equipment purchase and intangible assets | 31,589,000 | 56,861,000 | ||||
ASSETS | ||||||
TOTAL ASSETS | 2,506,409,000 | 2,565,224,000 | ||||
Operating Segments [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 328,164,000 | 594,265,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | -32,147,000 | -22,561,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -54,793,000 | -42,426,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -44,234,000 | -42,449,000 | ||||
Intersegment Eliminations [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 0 | -54,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | 0 | 0 | ||||
ASSETS | ||||||
Interdivision Assets | -79,743,000 | -30,486,000 | ||||
Segment Reconciling Items [Member] | ||||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -919,000 | [1] | -1,237,000 | [1] | ||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -919,000 | [1] | -1,115,000 | [1] | ||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 1,000 | [1] | 95,000 | [1] | ||
Capital expenditures: | ||||||
Reconciling item | 0 | [1] | 0 | [1] | ||
ASSETS | ||||||
Reconciling item | 3,281,000 | [2] | 2,953,000 | [2] | ||
Longmen Joint Venture [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 328,158,000 | 594,014,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | -32,147,000 | -22,219,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -53,498,000 | -39,294,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -42,405,000 | -38,034,000 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 24,186,000 | 23,530,000 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 19,148,000 | 26,990,000 | ||||
Capital expenditures: | ||||||
Consolidated capital expenditures | 30,625,000 | 56,747,000 | ||||
ASSETS | ||||||
Segment Reporting Assets | 2,310,161,000 | 2,408,218,000 | ||||
Maoming Hengda Steel Company Ltd [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 6,000 | 36,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | 0 | 24,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -561,000 | -522,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -666,000 | -537,000 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 310,000 | 304,000 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 0 | 0 | ||||
Capital expenditures: | ||||||
Consolidated capital expenditures | 296,000 | 32,000 | ||||
ASSETS | ||||||
Segment Reporting Assets | 22,555,000 | 25,933,000 | ||||
Baotou Steel Pipe Joint Venture [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 0 | 162,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | 0 | -23,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | 0 | -44,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | 0 | -35,000 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 0 | 62,000 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 0 | 1,000 | ||||
Capital expenditures: | ||||||
Consolidated capital expenditures | 0 | 0 | ||||
General Steel (China) Tianwu Joint Venture [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 0 | 53,000 | ||||
Gross profit: | ||||||
GROSS PROFIT | 0 | -343,000 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | -734,000 | -2,566,000 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | -1,163,000 | -3,843,000 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 668,000 | 450,000 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 1,421,000 | 1,609,000 | ||||
Capital expenditures: | ||||||
Consolidated capital expenditures | 668,000 | 82,000 | ||||
ASSETS | ||||||
Segment Reporting Assets | 249,013,000 | 158,606,000 | ||||
Tianjin General Shengyuan IoT Technology Co Ltd [Member] | ||||||
Sales: | ||||||
TOTAL SALES | 0 | 0 | ||||
Gross profit: | ||||||
GROSS PROFIT | 0 | 0 | ||||
Income (loss) from operations: | ||||||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | ||||
Net income (loss) attributable to General Steel Holdings, Inc.: | ||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | 0 | 0 | ||||
Depreciation and amortization: | ||||||
Depreciation, amortization and depletion | 0 | 0 | ||||
Finance/interest expenses: | ||||||
FINANCE/INTEREST EXPENSES | 0 | 0 | ||||
Capital expenditures: | ||||||
Consolidated capital expenditures | 0 | 0 | ||||
ASSETS | ||||||
Segment Reporting Assets | $1,142,000 | $0 | ||||
[1] | Reconciling item represents income or expenses of the Company, arising from General Steel Investment Co., Ltd, Yangpu Shengtong Investment Co., Ltd and Qiu Steel for the three months ended March 31, 2015 and 2014, which are non-operating entities. | |||||
[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 March 31, 2015 and December 31, 2014, which are non-operating entities. |
Subsequent_event_Details_Textu
Subsequent event (Details Textual) (Subsequent Event [Member], USD $) | 0 Months Ended |
Apr. 14, 2015 | |
Subsequent Event [Member] | |
Stock Issued During Period, Shares, Issued for Services | 500,000 |
Sale of Stock, Price Per Share | $0.98 |