Keyuan Petrochemicals (KEYP) 10-K 17 Oct 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Oct. 13, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Keyuan Petrochemicals, Inc.
Entity Central Index Key	1,326,396
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 332,697
Entity Common Stock, Shares Outstanding		63,132,726

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 4,764	$ 870
Pledged bank deposits	282,968	347,632
Notes receivable	735
Accounts receivable, net	23,398	27,514
Inventories	55,730	88,783
Prepayments to suppliers, net	80,077	26,564
Consumption tax recoverable	44,377	11,513
Amounts due from related parties	92	53
Amounts due from non-controlling interests	19,376
Other current assets	19,049	88,869
Total current assets	530,566	591,798
Property, plant and equipment, net	273,146	290,163
Intangible assets, net	1,021	838
Land use rights	23,757	25,865
VAT recoverable	1,205	2,001
Total assets	829,695	910,665
Current Liabilities:
Short-term bank borrowings	360,720	567,525
Notes payable	334,139	190,051
Accounts payable	52,820	48,624
Advances from customers	15,563	19,606
Amounts due to related parties	5,330	839
Accrued expenses and other payables	42,654	41,101
Income tax payable	1,596	46
Dividends payable	2,382	2,382
Total current liabilities	815,204	870,174
Long-term debt	15,400
Total liabilities	830,604	870,174
Stockholders' (deficit) equity:
Common stock: Par value: $0.001; Authorized: 100,000,000 shares Issued: 57,646,160 shares, shares outstanding: 57,221,050 as at December 31, 2015 and 2014	58	58
Additional paid-in capital	70,917	66,628
Statutory reserve	6,109	5,773
Accumulated other comprehensive income	7,098	9,701
Accumulated deficit	(101,594)	(41,220)
Considerations receivable	(9,417)
Treasury stock, at cost, 425,110 shares at December 31, 2015 and 2014	(449)	(449)
Total stockholders' (deficit) equity	(27,278)	40,491
Non-controlling interests	26,369
Total (deficit) equity	(909)	40,491
Total liabilities and (deficit) equity	$ 829,695	$ 910,665

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	57,646,160	57,221,050
Common stock, shares outstanding	57,646,160	57,221,050
Treasury stock, shares	425,110	425,110

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Sales	$ 474,360	$ 653,497
Cost of sales	446,442	659,353
Gross profit (loss)	27,918	(5,856)
Selling expenses	2,165	1,477
General and administrative expenses	35,554	11,742
Total operating expenses	37,719	13,219
Loss from operations	(9,801)	(19,075)
Other expense:
Interest income	12,231	10,109
Interest expense	(37,983)	(26,077)
Foreign exchange loss, net	(13,165)	(2,666)
Other expense, net	(10,562)	(6,369)
Total other expense, net	(49,479)	(25,003)
Loss before income taxes	(59,280)	(44,078)
Income tax expense	1,222	3,047
Net loss	(60,502)	(47,125)
Net loss attributable to non-controlling interests	464
Net loss attributable to Keyuan Petrochemicals Inc. common stockholders	(60,038)	(47,125)
Other comprehensive loss:
Foreign currency translation adjustment	(2,603)	(543)
Comprehensive loss	(63,105)	(47,668)
Comprehensive loss attributable to non-controlling interests	(464)
Comprehensive loss attributable to Keyuan Petrochemicals Inc. common stockholders	$ (62,641)	$ (47,668)
Loss per common stock:
-Basic	$ (1.05)	$ (0.82)
-Diluted	$ (1.05)	$ (0.82)
Weighted average number of shares of common stock used in calculation:
-Basic	57,221,050	57,304,255
-Diluted	57,221,050	57,304,255

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Statutory reserve	Accumulated Other comprehensive income	Retained earnings	Consideration receivable	Treasury Stock	Noncontrolling interest
Beginning Balance at Dec. 31, 2013	$ 73,392	$ 58	$ 51,555	$ 5,749	$ 10,244	$ 5,929		$ (143)
Beginning Balance (Shares) at Dec. 31, 2013		57,646,160
Additional paid in capital	15,073		15,073
Net loss	(47,125)					(47,125)
Treasury Stock	(306)							(306)
Statutory reserve				24		(24)
Other comprehensive income - Foreign currency translation loss	(543)				(543)
Ending Balance at Dec. 31, 2014	40,491	$ 58	66,628	5,773	9,701	(41,220)		(449)
Ending Balance, Shares at Dec. 31, 2014		57,646,160
Additional paid in capital			4,289						4,289
Net loss	(60,502)					(60,038)			464
Non-controlling shareholder investment	21,705								21,705
Statutory reserve				336		(336)
Consideration receivable							(9,417)		9,417
Other comprehensive income - Foreign currency translation loss	(2,603)				(2,603)
Ending Balance at Dec. 31, 2015	$ (909)	$ 58	$ 70,917	$ 6,109	$ 7,098	$ (101,594)	$ (9,417)	$ (449)	$ 26,369
Ending Balance, Shares at Dec. 31, 2015		57,646,160

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (60,502)	$ (47,125)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	15,265	13,665
Amortization of intangible assets	243	148
Inventory impairment		4,434
Bad debt expenses	22,151	285
Land use rights amortization	771	518
Deferred income tax benefit		2,627
Changes in operating assets and liabilities:
Notes receivable	(766)	25
Accounts receivable	(7,141)	(19,895)
Inventories	29,130	(23,347)
Prepayments to suppliers	(67,762)	5,200
Consumption tax recoverable	(34,967)	34,349
Other current assets	76,637	(33,769)
Accounts payable	5,334	(6,758)
Amounts due from/to related parties	2,225	825
Advances from customers	(3,097)	8,716
Taxes payable	2,184	(2,365)
Accrued expenses and other payables	(20,398)	29,635
Pledged deposit for operating activities	(71,763)	74,292
Net cash (used in) provided by operating activities	(112,456)	41,460
Cash flows from investing activities:
Purchase of property, plant and equipment	(3,396)	(33,668)
Payment in relation to constructions
Net cash used in investing activities	(3,396)	(33,668)
Cash flows from financing activities:
Pledged bank deposits used for bank borrowings	136,427	(85,561)
Proceeds from short-term bank borrowings	596,350	1,331,565
Repayment of short-term bank borrowings	(791,651)	(1,188,258)
Proceeds from bank notes	742,620	627,630
Repayments of bank notes	(580,916)	(700,136)
Proceeds from long term debt	16,061
Capital injection from non-controlling shareholder	22,209
Net cash provided by (used in) financing activities	141,100	(14,760)
Effect of foreign currency exchange rate changes on cash	(21,354)	(4,471)
Net increase/(decrease) in cash	3,894	(11,439)
Cash at beginning of period	870	12,309
Cash at end of period	4,764	870
Supplemental disclosure of cash flow information:
Income tax paid	273	2,795
Interest paid	23,832	22,471
Non cash investing and financing activities:
Amount not yet paid for purchase of property, plant and equipment (net of VAT)	$ (2,555)	$ 681

Organization and Nature of Busi

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans	12 Months Ended
	Dec. 31, 2015
Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans [Abstract]
ORGANIZATION AND NATURE OF BUSINESS, RECENT EVENTS, AND GOING CONCERN AND MANAGEMENT'S PLANS	1 ORGANIZATION AND NATURE OF BUSINESS, RECENT EVENTS, AND GOING CONCERN AND MANAGEMENT’S PLANS (a) Organization and Nature of business Keyuan Petrochemicals, Inc. (the “Company”) was incorporated in the State of Texas on May 4, 2004 in the former name of Silver Pearl Enterprises, Inc. The Company, through its wholly-owned subsidiary, Sinotech Group Limited, (“Sinotech Group”) and its indirect subsidiaries, Keyuan Group Limited (“Keyuan HK”), Ningbo Keyuan Plastics Co., Ltd. (“Ningbo Keyuan”), Ningbo Keyuan Petrochemicals Co., Ltd. (“Ningbo Keyuan Petrochemicals”), Ningbo Keyuan Synthetic Rubbers Co., Ltd. (“Keyuan Synthetic Rubbers”), Zhejiang ZhongkeXuneng Trading Co. (“Zhongkexuneng”) and Guangxi Keyuan New Materials Co., Ltd. (“Guangxi Keyuan”) (collectively referred herein below as “the Group”) are engaged in the manufacture and sale of petrochemical and rubber products in the People’s Republic of China (“PRC”). Sinotech Group is an investment holding company and was incorporated in the British Virgin Islands in 2009. Keyuan HK was established in Hong Kong in 2009, and is a holding company with no significant assets. Ningbo Keyuan was established in April 2007 as a wholly foreign-owned enterprise in Ningbo, PRC. On August 8, 2010, Keyuan HK established Ningbo Keyuan Petrochemicals, a wholly-owned subsidiary in the PRC. On March 7, 2012, Keyuan HK and Ningbo Keyuan established Guangxi Keyuan, a wholly-owned subsidiary in the PRC. Commencing from April 15, 2013, Guangxi Keyuan is owned by Sinotech Group which owns 75% and Ningbo Keyuan which owns 25%. On June 15, 2012, Ningbo Keyuan established Keyuan synthetic Rubbers, a wholly-owned subsidiary in the PRC. On May 13, 2014, Sinotech Group (75%) and Ningbo Keyuan (25%) established Zhongkexuneng, a wholly-owned subsidiary in the PRC. On September 16, 2015, Sinotech Group, Ningbo Hengyun Energy Technology Co Ltd. (“Hengyun”) and Ningbo Keyuan entered into a shareholder investment agreement regarding the capital investment of Guangxi Keyuan. Hengyun invested $30.5 million to Guangxi Keyuan with shareholding percentage of 32.88%. As of December 31, 2015, Hengyun invested $21.7 million to Guangxi Keyuan, the remaining part will be paid before December 31, 2016 as agreed in the contract. (b) Other Events On February 13, 2014, The Brown Law Firm filed a derivative action suit on behalf of the Company alleging certain and former current officers and directors of the Company had violated their fiduciary duties during the period from at least April 22, 2010 to October 20, 2011 (the “Derivative Action”). The Company and the plaintiff entered certain settlement of the Derivative Action pursuant to the terms of a stipulation of settlement whereby the Company agreed to certain corporate governance reforms including expanding its Nomination and Corporate Governance Committee and adopting a related party transaction policy and an payment of $190,000 to plaintiff’s counsel. On October 5, 2015, the United States District Court Southern District of New York entered an order granting final approval of the settlement. The case was dismissed. On November 15, 2011, The Rosen Law Firm filed a class action suit on behalf of certain stockholders, alleging the Company had violated federal securities laws by issuing materially false and misleading statements and omitting material facts with regard to disclosure of related party transactions and effectiveness of internal controls in past public filings. After litigating the case for several years, the parties entered a stipulation of settlement in the aggregate amount of $2,650,000 in cash, plus interests, the terms of which United States District Court Southern District of New York entered an order granting final approval of on October 9, 2015. The case was dismissed. On October 28, 2014, Dragon State Limited (“Dragon State”), an investor in the Company’s September 2010 Private Placement, filed a complaint against, among others, the Company and Mr. Chunfeng Tao, seeking rescission of the securities purchase agreement in the September 2010 Private Placement and the return of $20 million, and in the alternative, seeking monetary damages to be determined at a trial but not less than $20 million (the “Complaint”). At the closing of the September 2010 Private Placement, Dragon State purchased from the Company for an aggregate price of $20 million, 5,333,340 shares of the Company’s Series B preferred stock, 800,001 series C warrants to purchase 800,001 common shares, at a price of $4.50 per share (subject to adjustments), and 800,001 series D warrants to purchase 800,001 common shares at a price of $5.25 per share (subject to adjustments). On July 11, 2016, the Company entered into a share purchase and settlement agreement (the “Settlement Agreement”) with Dragon State, Delight Reward Limited (“Delight Reward”), Keyuan HK, Ningbo Keyuan Petrochemicals, Ningbo Keyuan, and Keyuan Synthetic Rubbers (the Company, Keyuan HK, Ningbo Keyuan Petrochemicals, Ningbo Keyuan and Keyuan Synthetic Rubbers are collectively referred as the “Keyuan Group”), Tao, and Prax Capital Equity Management Co., Ltd., an affiliated party to Dragon State. Pursuant to the Settlement Agreement, Dragon State agreed to transfer the securities purchased in the September 2010 Private Placement to Delight Reward for a consideration of RMB 12,000,000 or the equivalent amount of US dollars. In addition, Delight Reward and Keyuan Group agreed to pay, and Dragon State agreed to accept, a settlement of RMB 6,000,000 or equivalent amount of US dollars to waive all claims and liabilities that Dragon State or its affiliated companies or individuals had brought or would bring against Delight Reward, Keyuan Group, Tao and their affiliates including the Complaint. These amounts were paid on July 15, 2016. On July 19, 2016, the United States District Court Southern District of New York entered an order granting final approval of the settlement. The Complaint was dismissed. On August 4, 2016, Delight Reward entered into a side agreement with the Company (the “Side Agreement”). Under the Side Agreement, Delight Reward agreed not to claim, that the warrants transferred pursuant to the Settlement Agreement were exercisable, and agreed pay to the Company for each convertible share underlying the Series B preferred stock transferred pursuant to the Settlement Agreement, the highest sale price of the Company’s Common Stock per share as reported on the OTC Pink during a period commencing on the date of the Settlement Agreement and ending on August 4, 2016, which was $0.005 per share of Common Stock. The aggregate purchase price for the shares of Common Stock underlying the series B preferred stock was, therefore $27,465.01. On August 8, 2016, these funds were paid in cash on hand by Delight Reward. On August 10, 2016, the shares of Series B preferred stock were converted into 5,493,001 shares of Common Stock pursuant to the terms of the certificate of designations of series B preferred stock and the Side Agreement. (c) Financial condition, liquidity, and capital resources For the year ended December 31, 2015, the Company reported net loss of approximately $60.5 million and cash flow used in operations of approximately $112.5 million. At December 31, 2015, the Company had working capital deficit of approximately $284.6 million. Although the Company continues to finance and support its operations primarily through short-term bank borrowings, management’s realignment of product profiles, along with the general stabilization of the petrochemical industry in China, the operations resulted in net loss of $60.5 million in 2015 compared to a net loss of $47. 1 million in 2014 and a net profit of $4.6 million in 2013. Short-term bank borrowings and notes payable amounted to approximately $695 million at December 31, 2015. These matters raise substantial doubt about the company’s ability to continue as a going concern. The Company is exploring sources of additional financing, including short-term financing from its vendors, banks, and other parties and equity financing. In addition, the Company is closely monitoring its cash balances, cash needs and expense levels. The ability of the Company to continue as a going concern is dependent upon management’s ability to implement its strategic plan, obtain additional capital and generate net income and positive cash flows from operations. There can be no assurance that these plans will be sufficient or that additional financing will be available in amounts or terms acceptable to the Company, if at all.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation and basis of presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the financial statements of the Company. All significant intercompany transactions and balances are eliminated on consolidation. (b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment; the fair value determination of financial and equity instruments; the realizability of inventories; and the recoverability of long-lived assets, realization of deferred tax assets and collectability of receivables. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. (c) Foreign currency transactions and translation The functional currency of the Company, Sinotech Group and Keyuan HK is the U.S. dollar. The functional currency of the PRC operating subsidiaries is the Renminbi (“RMB”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at each balance sheet date, and non-monetary items are translated at historical rates. The resulting exchange differences on these transactions are recorded in foreign exchange gain (loss), net in the consolidated statements of operations and comprehensive loss. The Group’s reporting currency is the U.S. dollar. Assets and liabilities of the PRC operating subsidiaries are translated into the U.S. dollar using the exchange rates at each balance sheet date. The balance sheet amounts at December 31, 2015 and 2014, with the exception of equity, were translated at RMB 6.4936 and 6.1190 6.2264 and 6.1426 (d) Cash Cash consists of cash on hand and cash at banks. As of December 31, 2015 and December 31, 2014, cash of 4.8 million and $0.9 million, respectively, was held in major financial institutions located in the PRC. Management performs periodic evaluations of the relative credit standings of those financial institutions, and believes that they have high credit ratings. (e) Pledged bank deposits Pledged bank deposits represent amounts held by financial institutions, which are not available for the Group’s use, as security for issuances of notes payable to the Group’s suppliers, or as security for short-term bank borrowings. Upon maturity of the bills, which generally occurs within three to six months after the issuance of the bills, or upon the repayment of short-term bank borrowings, the deposits are released by the financial institutions and become available for use by the Group. Pledged bank deposits related to the purchase of inventories are reported within cash flows from operating activities and pledged bank deposits related to short-term bank borrowings are reported within cash flows from financing activities in the consolidated statements of cash flows. (f) Inventories Inventory is stated at the lower of cost or market. Cost is determined using the weighted-average cost method. Written-downs are made for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value. Management continually evaluates the recoverability based on assumptions about customer demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory written-downs may be required. The Group recorded $4.4 million for slow-moving and obsolete inventory as of December 31, 2014. The Group did not record any written-down for slow-moving and obsolete inventory for other periods presented in this report. (g) Accounts receivable, net With the approval of the Company’s general manager, the Company occasionally extends unsecured credit to its long-term customers with a good credit rating. An allowance for doubtful accounts is established and recorded based on management’s assessment of its analysis of trade receivables, customers’ credit-worthiness, past collection history, and changes in customers’ payment records. The Company writes-off accounts receivable when accounts are deemed uncollectible. At December 31, 2015 and 2014, the Group recorded $1.8 million and nil provision for doubtful accounts made in the consolidated financial statements, respectively. (h) Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, taking into consideration the assets’ estimated residual value. When items are retired or otherwise disposed of, income is charged or credited for the difference between the net book value and proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. The estimated useful lives of property, plant and equipment are as follows: Buildings 45 years Plant, machinery and equipment 5 to 20 years Vehicles 5 years Office equipment and furniture 3 to 10 years Construction-in-progress is stated at cost. Cost comprises nonrefundable prepayments during the period of the construction of the plant or installation of equipment. Costs included in construction-in-progress are transferred to their respective categories of property, plant and equipment when the assets are ready for their intended use, at which time depreciation commences. (i) Long-Lived Assets In accordance with Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 360-10, the Group reviews the recoverability of its long-lived assets on a periodic basis in order to identify business conditions, which may indicate a possible impairment. The assessment for potential impairment is based primarily on the Group’s ability to recover the carrying value of its long-lived assets from expected future undiscounted cash flows. If the total of the expected future undiscounted cash flows is less than the total carrying value of the assets, a loss is recognized for the difference between the fair value (computed based upon the expected future discounted cash flows) and the carrying value of the assets. No impairment is believed to exist at December 31, 2015 and December 31, 2014. (j) Land use rights Land use rights represent the exclusive right to occupy and use a piece of land in the PRC for a specified contractual term. Land use rights are recorded at cost and amortized on a straight-line basis over the terms of the land use rights of 15 to 50 years. (k) Notes receivable and notes payable The Group utilizes banker’s acceptances in the form of notes receivable and notes payable. For certain major customers, the Group accepts their payments for the Group’s products by notes receivable. Notes receivable represent short-term notes receivable issued either by a customer or by a customer and an accepting bank that entitles the Group to receive the full face amount from such customer or such accepting bank at maturity, which is generally six months from the date of issuance. Notes receivable are typically sold at a discount prior to maturity, and the discount is included in interest expense. Historically, the Group has experienced no losses on notes receivable from the default of counter parties. Notes payable represent bills issued by an accepting bank in favor of the Group’s suppliers. The Group’s suppliers receive payments from such accepting bank directly upon maturity of the bills, and the Group is obliged to repay the face value of the bills to such accepting bank. Bills that are not remitted directly by the Group to its suppliers may be sold by the Group to other accepting banks for cash prior to their maturity. Discounts paid are recorded as a component of interest expense. Notes payable with financing nature amounted $312 million and $132 million as of December 31, 2015 and 2014, respectively. (l) Revenue recognition The Group derives its revenue primarily from the sale of petrochemical products. In accordance with the provisions of FASB ASC Topic 605, revenue should not be recognized until it is realized or realizable and earned. Revenues are considered to have been earned when the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues. The Group recognizes revenue when the products are delivered and a customer takes ownership and assumes risks of losses, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. Written sales agreements, which specify price, product, and quantity, are generally used as evidence of an arrangement. Customer acceptance is generally evidenced by a carrier signed shipment notification form. In the PRC, value added tax (“VAT”) of 17% on invoiced amounts, and consumption tax of $190 per ton on certain sales, are collected on behalf of tax authorities. Revenue is recorded net of VAT and consumption tax. VAT and consumption tax paid for purchases, net of VAT and consumption tax collected from customers, is recorded in other current assets and consumption tax recoverable, respectively. (m) Share-based compensation The Group accounts for share-based payments under the provisions of FASB ASC Topic 718, “Compensation-Stock Compensation”. Under ASC Topic 718, the Group measures the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the costs over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group accounts for equity instruments issued to non-employee vendors in accordance with the provisions of FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-Employees”. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the equity instrument issued. The measurement date for the fair value of the equity instruments issued is the date on which the counter party’s performance is completed. (n) Employee benefit plans Pursuant to relevant PRC regulations, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan synthetic Rubbers, Zhongkexuneng and Guangxi Keyuan are required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 26.7% to 28.7% on a standard salary base as determined by the local security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of operations and comprehensive loss when the related service is provided. For each of the years ended December 31, 2015 and 2014, contributions to the defined contribution plans were approximately $1 million and $1 million, respectively. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. (o) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized. As of December 31, 2015 and 2014, $ 33.3 million and $20.9 million valuation allowance were provided against deferred tax assets. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest related to unrecognized tax benefits as part of income tax expense in the consolidated statements of comprehensive income. There were no unrecognized tax benefits as of December 31, 2015 and 2014, respectively. Management does not anticipate any potential future adjustments in the next twelve months, which would result in a material change to its tax position. For periods presented, the Group did not incur any interest and penalties. (p) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 inputs are unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. (q) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to the Company’s common stockholders by the weighted average number of common stock outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to the Company’s stockholders as adjusted for the effect of dilutive common stock equivalents, if any, by the weighted average number of common stock and dilutive common stock equivalents outstanding during the year. Common stock equivalents consist of the common stock issuable upon the conversion of the Group’s Series B convertible preferred stock (using the if–converted method) and common stock issuable upon the exercise of outstanding stock options and stock purchase warrants (using the treasury stock method). Potential dilutive securities are not included in the calculation of dilutive earnings (loss) per share if the effect is anti-dilutive. No warrants and options were included from diluted earnings per share for the years ended December 31, 2015 and 2014, respectively, as their effect was anti-dilutive. (r) Segment reporting The Group’s chief operating decision maker has been identified as its Chief Executive Officer (CEO). The Group has two operating segments : the manufacture and sale of petrochemical products (“petrochemical segment”) and the manufacture and sale of rubber products (“rubber segment”). Substantially all of the Company’s operations and customers are located in the PRC. (s) Contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. (t) Recent accounting pronouncements In August 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in this ASU defer the effective date of ASU No. 2014-09 for all entities by one year. ASU No. 2014-09, issued in May 2014, clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. Simultaneously, this ASU supersedes the revenue recognition requirements in ASC Topic 605-Revenue Recognition and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of this ASU requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”. The amendments in this ASU do not change the core principle of the guidance. The amendments clarify the implementation guidance on principal versus agent considerations. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The amendments in this ASU affect the guidance in ASU No. 2014-09, which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements of ASU No. 2014-09, which is deferred by ASU No. 2015-14 by one year. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In March 2016, the FASB issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The amendments in this ASU affected all entities that issue share-based payment awards to their employees. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. The amendments in this ASU do not change the core principle of the guidance in Topic 606. Rather, the amendments in this ASU clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14 defers the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Inventories [Abstract]
INVENTORIES	3 INVENTORIES Inventories consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Raw materials $ 34,116 $ 33,647 Finished goods 18,003 53,959 Work-in-process 3,611 1,177 Total $ 55,730 $ 88,783

Advances from Customers

Advances from Customers	12 Months Ended
	Dec. 31, 2015
Advances from Customers [Abstract]
ADVANCES FROM CUSTOMERS	4 ADVANCES FROM CUSTOMERS The Group generally requires a prepayment of 100% of the sales contract price from its customers shortly before products are delivered. Such prepayments are recorded as “advances from customers” in the Group’s consolidated balance sheets, until products are delivered and customers take ownership and assume the risk of loss. Approved by the Company’s general manager, the Company occasionally extends credit to its long-term customers with good credit ratings.

Prepayments to Suppliers

Prepayments to Suppliers	12 Months Ended
	Dec. 31, 2015
Prepayments to Suppliers [Abstract]
PREPAYMENTS TO SUPPLIERS	5 PREPAYMENTS TO SUPPLIERS The Group makes prepayments to suppliers in connection with purchases of raw materials, which would be settled within the following twelve months. Prepayments to suppliers are reclassified to inventories or expense and applied to related purchases of materials after invoices of such purchases are received. Bad debt provision charged to expenses from the prepayments to suppliers were $9.6 million and nil for the year ended December 31, 2015 and 2014. The bad debt provision was mainly due to canceled orders caused by change in market conditions which led to decrease in product demand.

Consumption Tax Recoverable

Consumption Tax Recoverable	12 Months Ended
	Dec. 31, 2015
Consumption Tax Recoverable [Abstract]
CONSUMPTION TAX RECOVERABLE	6 CONSUMPTION TAX RECOVERABLE The PRC government enacted a regulation pursuant to which domestically purchased heavy oil to be used for producing ethylene and aromatics products was exempted from consumption tax. In addition, the consumption tax paid for imported heavy oil is to be refunded if it is used for producing ethylene and aromatics products. Given all the Group’s purchased heavy oils are, or are to be, used for producing ethylene and aromatics products, the Group recognizes a consumption tax recoverable when a consumption tax for heavy oils has been paid and the relevant heavy oils have been used for producing ethylene and aromatics products. As of December 31, 2015 and December 31, 2014, the Group recorded an estimated consumption tax recoverable amounting to approximately $44.4 million and $11.5 million, respectively. As of July 31, 2016, all outstanding tax recoverable as of December 31, 2015 was refunded.

Other Current Assets

Other Current Assets	12 Months Ended
	Dec. 31, 2015
Other Current Assets [Abstract]
OTHER CURRENT ASSETS	7 OTHER CURRENT ASSETS Other current assets consist of the following: As of December 31, 2015 2014 ($’000) ($’000) VAT recoverable $ 10,397 $ 72,693 Customs deposits for imported inventories 2 2,541 Deposit paid to suppliers 3,907 9,224 Prepaid EIT - 574 Other 4,743 3,837 $ 19,049 $ 88,869 Management estimates the deductible input VAT using vendor contracts, engineering and other estimates, as well as historical experience. Customs deposits for imported inventories represent amounts paid to the local customs office in connection with the import of raw materials inventories. Upon approval by the customs authorities, these amounts become refundable by the local tax authority and are reclassified as VAT recoverable or consumption tax recoverable (Note 6). The decrease in 2015 was mainly due to the decrease in purchase and most VAT recoverable has been utilized before year end.

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	8 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Buildings $ 6,898 $ 7,320 Plant, machinery and equipment 316,087 332,885 Vehicles 1,149 1,321 Office equipment and furniture 380 314 Construction-in-progress 15,117 3,345 339,631 345,185 Less: accumulated depreciation (66,485 ) (55,022 ) $ 273,146 $ 290,163 Depreciation expense on property, plant and equipment is allocated to the following items: Year ended December 31, 2015 2014 ($’000) ($’000) Cost of sales $ 14,435 $ 12,736 Selling, general and administrative expenses 830 929 $ 15,265 $ 13,665 For the years ended December 31, 2015 and 2014, interest capitalized amounted to approximately $0.2 million and $1.0 million, respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2015
Intangible Assets [Abstract]
INTANGIBLE ASSETS	9 INTANGIBLE ASSETS Intangible assets consist of the following: Amortization As of December 31, Period 2015 2014 Years ($’000) ($’000) Licensing agreements, software and patent technology 10-20 $ 2,119 $ 1,756 Less: accumulated amortization (1,098 ) (918 ) $ 1,021 $ 838 Licensing agreements consist of technology utilization rights for petrochemical and rubber production. For the years ended December 31, 2015 and 2014, amortization expense related for intangible assets was approximately $0.2 million and $0.1 million, respectively. Amortization expense for each of the five succeeding years is estimated as follows: Estimated amortization expense ($’000) Year ending December 31, 2016 $ 512 Year ending December 31, 2017 88 Year ending December 31, 2018 67 Year ending December 31, 2019 45 Year ending December 31, 2020 45 Thereafter 264 $ 1,021

Land Use Rights

Land Use Rights	12 Months Ended
	Dec. 31, 2015
Land Use Rights [Abstract]
LAND USE RIGHTS	10 LAND USE RIGHTS Land use rights consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Land use rights $ 26,952 $ 28,471 Less: Accumulated amortization (3,195 ) (2,606 ) $ 23,757 $ 25,865 For the years ended December 31, 2015 and 2014, amortization expense related to land use rights was approximately $0.8 million and $0.5 million, respectively. Amortization expense for each of the five succeeding years is estimated as follows: Estimated amortization expense ($’000) Year ending December 31, 2016 $ 739 Year ending December 31, 2017 739 Year ending December 31, 2018 739 Year ending December 31, 2019 739 Year ending December 31, 2020 739 Thereafter 20,061 $ 23,757

Short-Term Bank Borrowings and

Short-Term Bank Borrowings and Long Term Debts	12 Months Ended
	Dec. 31, 2015
Short-Term Bank Borrowings and Long Term Debts [Abstract]
SHORT-TERM BANK BORROWINGS AND LONG TERM DEBTS	11 SHORT-TERM BANK BORROWINGS AND LONG TERM DEBTS Short-term bank borrowings consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Bank borrowings $ 360,720 $ 567,525 As of December 31, 2015, short-term bank borrowings had interesting rates ranging from 1.9% to 6.9% with a weighted average interest rate of 5.3% in RMB loans and a weighted average interest rate of 2.4% in USD loans maturing from two to twelve months. The loans were mainly used to support the daily operation of the Company. As of December 31, 2014, short-term bank borrowings had interesting rates ranging from 1.0% to 7.5% with a weighted average interest rate of 6.3% in RMB loans and a weighted average interest rate of 3.3% in USD loans maturing from two to twelve months. A portion of short-term bank borrowings were either secured by the Group’s land, buildings and equipment or pledged by one-year fixed term deposits, or third party guaranty. The following table sets forth the short-term borrowings from each bank as of December 31, 2015 and 2014, Bank Short-term Borrowing as of December 31, Carrying amount of pledged one-year deposit as of December 31, Carrying amount of secured land, buildings or equipment as of December 31, 2015 2014 2015 2014 2015 2014 ($’000,000) ($’000,000) ($’000,000) ($’000,000) ($’000,000) ($’000,000) Shanghai Pudong $ 5.9 $ 43.7 $ - $ 27.0 $ - $ - Bank of China 122.2 133.9 19.5 48.8 - 96.6 China Construction Bank 181.8 162.2 104.5 93.9 - - Agriculture Bank of China 23.1 45.9 - 22.1 - -- Ningbo Commerce Bank 3 16 3.1 11.2 - - Bank of Communication 10.9 19.2 - 3.5 - - Bank of Ningbo - 22 - 9.3 - - China Minsheng Bank 3.3 13.5 - 5.8 - - Bank of Huaxia - 6.8 - 1.3 - - China Merchant Bank 7.7 28.4 0.3 14.1 - - Ping’an Bank 2.8 55.4 2.9 39.7 - - The Import Export Bank of China - 20.5 - - - 35.0 Total $ 360.7 $ 567.5 $ 130.3 $ 276.7 $ - $ 131.6 Among the Group's short-term borrowing, as of December 31, 2015 and 2014, $109.5 million and $105. 1 million was guaranteed by related party and third-party entities and individuals, respectively. As of December 31, 2015 and 2014, nil and $21.5 million of the Group’s short-term borrowings was secured by the Group’s land, buildings and equipment with a carrying amount of nil and $131.6 million, respectively; and $251.2 million and $440.9 million of the Group’s short-term borrowings was pledged by one-year fixed term deposits with a carrying amount of $130.3 million and $276.7 million, respectively. The long term debt of the Company was signed between Ningbo Keyuan and Zhouji (Group) Co., Ltd (“Zhouji Group”) on April 9, 2015. The principal of the debt is RMB100 million (approximately $15.4 million). The debt matures at the second anniversary and carries an interest of 7.0% which is 40% higher than average interest rate of long term bank loans during that period. The long term loan is secured by 15% of Chunfeng Tao’s ownership of Ningbo Keyuan. Upon the maturity of the loan, Zhouji Group has an option to elect a payment of the principal and the accrued interest or the transfer of 15% of Mr. Tao’s ownership of Ningbo Keyuan.

Accrued Expenses and Other Paya

Accrued Expenses and Other Payables	12 Months Ended
	Dec. 31, 2015
Accrued Expenses and Other Payables [Abstract]
ACCRUED EXPENSES AND OTHER PAYABLES	12 ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Purchase of property, plant and equipment $ 12,555 $ 15,924 Accrued payroll and welfare 677 1,176 Liquidated damages 2,493 2,493 Accrued interest expense 7,476 3,705 Accrued expenses according to ongoing lawsuits 10,200 4,908 Loan from unrelated parties 1,540 8,253 Other tax payable 2,765 3,387 Deposit from customers 2,499 - Other accruals and payables 2,449 1,255 $ 42,654 $ 41,101 Other accruals and payables mainly represent the penalty payable to SEC, the cancellation of share-based compensation and VAT payables.

Series B Convertible Preferred

Series B Convertible Preferred Stock and Related Financing Agreements	12 Months Ended
	Dec. 31, 2015
Series B Convertible Preferred Stock and Related Financing Agreements/ Stock Repurchase Program [Abstract]
SERIES B CONVERTIBLE PREFERRED STOCK AND RELATED FINANCING AGREEMENTS	13 SERIES B CONVERTIBLE PREFERRED STOCK AND RELATED FINANCING AGREEMENTS The significant terms of the Series B convertible preferred stock are as follows: Conversion: At any time on or after the issuance date, at the election of the holders, each share of the Series B convertible preferred stock may be converted into shares of the Company’s common stock, at a conversion price of $3.75 per share, subject to certain ownership limitations and adjustments. The conversion price is subject to certain anti-dilutive adjustments, including adjustments for stock splits, dividends and distributions, and reorganization, merger or consolidation. In addition, the conversion price may be adjusted down. The Series B convertible preferred stock shall be automatically converted into common stock (for the same conversion price as described above) upon the third year anniversary of the issuance date of the Series B convertible preferred stock on September 28, 2013. In the event the Company shall issue or sell any additional shares of common stock at a price per share less than the then-applicable conversion price or without consideration, then the conversion price upon each such issuance shall be reduced to that price (the “Round Down Provision”). On September 24, 2013, the Company and the sole holder of Series B convertible preferred stock agreed to extend the automatic conversion date of Series B preferred stock from September 28, 2013 to September 28, 2014 (as described below). Management evaluated the terms and conditions of the embedded conversion features and determined that there was no beneficial conversion features for the Series B convertible preferred stocks because the effective conversion price is equal to or higher than the fair value at the date of issuance. Management evaluated the terms and conditions of the embedded conversion features based on the guidance of ASC 815-15-25-1 (formerly SFAS 133, paragraph 12) to determine if there was an embedded derivative requiring bifurcation. An embedded derivative instrument (such as a conversion option embedded in the convertible preferred stock) must be bifurcated from its host instruments and accounted for separately as a derivative instrument only if the “risks and rewards” of the embedded derivative instrument are not “clearly and closely related” to the risks and rewards of the host instrument in which it is embedded. Management concluded that the embedded conversion feature of the preferred stock was not required to be bifurcated because the conversion feature is clearly and closely related to the host instrument, and because of the Company’s limited trading volume that indicates the feature is not readily convertible to cash in accordance with ASC 815-10, “Derivatives and Hedging”. Redemption: As a result of the Round Down Provision, and in accordance with ASR 268 “Presentation in Financial Statement of Redeemable Preferred Stock”, the Series B convertible preferred stock has been classified as temporary equity as of December 31, 2013, as the Company does not control the events necessary to issue the maximum number of shares that could be required should the redemption feature be triggered. In the event the Company has insufficient authorized registered shares of common stock to effect a conversion request from the Series B investors, the Company, at its sole discretion, may elect to satisfy such conversion request by either redeeming the preferred stock at its liquidation preference of $3.75 per share, or by issuing restricted shares of the Company’s common stock. The Series B convertible preferred stock is redeemable at the option of their holders simultaneously with the occurrence of the following events: (i) a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock dividends or distributions or a reclassification, exchange or substitution of shares provided for in the terms of the series B convertible preferred stock), (ii) merger or consolidation where the holders of the Company’s outstanding voting securities prior to such merger or consolidation do not own over 50% of the outstanding voting securities of the merged or consolidated entity immediately after such merger or consolidation; or (iii) the sale of all or substantially all of the Company’s properties or assets (collectively, an “Organic Change”). Management considers the occurrence of the Organic Change is solely within the control of the Company. The Series B convertible preferred stock has no value as of December 31, 2015 and 2014 as the current holder, Delight Reward, has waived all claims and liabilities on the Company. Voting Rights: The Series B convertible preferred stock has no voting rights with the common stock or other equity securities of the Company other than certain class voting rights, as outlined in its terms. Fixed dividends were accrued and cumulative for one year from the date of the initial issuance of the Series B convertible preferred stock, and are payable on a quarterly basis. Annual dividends were determined as 6% of $3.75 for each share of the Series B convertible preferred stock. Fixed dividends are no longer payable on the series B convertible preferred stock. Tolling Agreement: The Company and Dragon State, the sole holder of series B convertible preferred stock and the majority holder of Series C warrants and Series D warrants, entered into a tolling agreement, dated September 24, 2013 (the “Tolling Agreement”). Pursuant to the Tolling Agreement, all periods of limitation, repose and laches which are or may be applicable to any or all claims and remedies at contract, tort and statute, including but not limited to all claims arising out of the securities purchase agreement dated September 28, 2010 and out of Dragon State’s purchase of the securities of the Company, whether described therein or not (collectively, “Tolled Claims”), that Dragon State has or may have against the Company and its Chairman of the Board and former Chief Executive Officer, Mr. Tao, are tolled and suspended as of September 8, 2013 through and including September 28, 2014. Together with the Tolling Agreement, the Company and Dragon State agreed to amend certain terms in the certificate of designations, preferences and rights of Series B convertible preferred stock, Series C warrants and Series D warrants issued in Series B financing in September 2010 (the “Amendments”). Pursuant to the Amendments, i) the date of maturity (a/k/a. the date of mandatory conversion) of series B convertible preferred stock was extended from September 28, 2013 to September 28, 2014; ii) the term of Series C warrant was extended from three years to four years; and iii) the term of Series D warrant was extended from three years to four years. The Company considered the fair value of series B convertible preferred stock, Series C warrants and Series D warrants immediately before and after the Amendments and determined that the Amendments constitute modification of the Series B convertible preferred stock, Series C warrants and Series D warrants, resulting in the transfer of value from the Company’s common shareholders to Series B preferred stockholders. The estimated fair value of the value transferred is approximately $548,000 and was reflected as a deemed dividend in the statement of comprehensive income for the year ended December 31, 2013. The fair value was estimated as of September 24, 2013 (date of modification) using the Black Scholes option-pricing model utilizing the following assumptions: stock price of $0.70 per share; no dividends; a risk free rate of 0.1%, which equals the one-year yield on treasury bonds at constant (or fixed); and volatility of 126.36%. On October 30, 2014, Dragon State filed a complaint, among others, against the Company and Mr. Chunfeng Tao, seeking rescission of the securities purchase agreement dated September 28, 2010, and the return of $20 million, and in the alternative, seeking monetary damages to be determined at a trial but not less than $20 million. Please refer to Note 18 (c) for details. In connection with the complaint, a consent order was issued by the District Court for the Southern District of New York whereby the Company and Mr. Chunfeng Tao agreed that the expiration date of the Series B Shares should be tolled pending the resolution of the complaint. On July 21, 2016, the Complaint was dismissed by the District Court for the Southern District of New York in connection with the execution of a settlement agreement between and among the Company, certain affiliates of the Company, Dragon State and others. Subsequently, all Series B convertible preferred stock was transferred to additional paid in capital of the Company as at December 31, 2014.According to the settlement agreement, Dragon State transferred all the securities it owned on the Company to Delight Reward. On August 4, 2016, the Company entered into a side agreement with Delight Reward whereby Delight Reward agreed not to claim the Series C and Series D warrants were exercisable and agreed to pay for each convertible share underlying the Series B convertible preferred stock the highest sale price of the Company’s Common Stock per share as reported on OTC Pink Marketplace during a period commencing on the date of the settlement agreement. Thus, the Series C and Series D warrants are considered expired. The Company has made accounting adjustments for the year ended December 31, 2014 to transfer the Series B Convertible Preferred Stock, Series C and Series D warrants into the additional paid-in capital account and then deduct the additional paid-in capital by the final consideration of share transfer of RMB 12 million ($1.8 million). Then a non-operation expense of RMB 6 million ($0.9 million) was also booked to waived all claims. The Company considered the fair value of the Series B convertible preferred stock, the Series C warrants and the Series D warrants immediately before and after the Amendments and determined that the Amendments constitute modification of the Series B convertible preferred stock, the Series C warrants and the Series D warrants, resulting in the transfer of value from the Company’s common shareholders to the Series B preferred shareholders. The estimated fair value of the value transferred was not significant. Escrow shares agreement: In connection with the Series B financing, the Company entered into an escrow share agreement with the representatives of the Series B investors, Delight Reward (the majority owner of the Company), and Anslow & Jaclin, LLP (the “Escrow Agreement”), pursuant to which 3,400,000 shares of the Company’s common stock (the “Escrow Shares”) held by Delight Reward were delivered to the Escrow Agent. The Escrow Shares were to be released back to Delight Reward upon the Company’s achievement of no less than 95% of a net income of $33 million for the year ended December 31, 2010 (the “Performance Threshold”). The Performance Threshold was achieved and the 3,400,000 shares were released on November 6, 2013.

Common Stock Purchase Warrants

Common Stock Purchase Warrants	12 Months Ended
	Dec. 31, 2015
Common Stock Purchase Warrants [Abstract]
COMMON STOCK PURCHASE WARRANTS	14 COMMON STOCK PURCHASE WARRANTS In conjunction with the Company’s Series A and Series B financings, the Company previously issued the following warrants to purchase the Company’s common stock: Issuance dates Maximum number of shares of common stock Exercise Prices Series A Warrants April 22 and May 18, 2010 748,704 $ 4.50 Series B Warrants April 22 and May 18, 2010 748,704 $ 5.25 Series C Warrants September 28, 2010 810,002 $ 4.50 Series D Warrants September 28, 2010 810,002 $ 5.25 Placement agent warrants -Series A Private Placement April 22 and May 18, 2010 718,755 3.50 ~ $5.25 -Series B Private Placement September 28, 2010 561,601 $ 3.75 ~ $5.25 Series A warrants and Series B warrants, including placement agent warrants issued in the Series A financing, expired in 2013. Series C warrants and Series D warrants, including placement agent warrants issued in the Series B financing, were considered expired on or about the date of the side agreement (as described in Note 13 above).

Share-Based Payments

Share-Based Payments	12 Months Ended
	Dec. 31, 2015
Share-Based Payments [Abstract]
SHARE-BASED PAYMENTS	15 SHARE-BASED PAYMENTS (a) Employee stock option grants The Board of Directors approved the Company’s 2010 Equity Incentive Plan (the “Plan”). The maximum number of shares of common stock of the Company issuable pursuant to the Plan is 6,000,000 shares. Subject to the provisions of the Plan, the Board and/or the Committee shall have authority to determine the type or types of awards to be granted to each participant under the Plan. The exercise price of options to purchase shares of the Company’s common stock granted under the Plan shall be determined by the Board or the Committee, provided, however that the exercise price of any incentive stock option shall not be less than 100% of the fair market value of a share on the date of grant. The term of each option shall be fixed by the Board or the Committee, provided that no incentive stock option shall have a term greater than 10 years. On June 30, 2010, the Company granted a total of 3,000,000 stock options to certain senior management employees with a contractual term of 5 years. The exercise price of these stock options is $4.20 per share and the grant-date fair value of these stock options amounted to approximately $3.3 million. A total of 2,810,000 stock options vest over three years as follows: 30% shall vest and become exercisable one year after grant date, 40% shall vest and become exercisable two years after grant date, and 30% shall vest and become exercisable three years after grant date. For the remaining 190,000 stock options: 40% shall vest and become exercisable one year after grant date and 60% shall vest and become exercisable two years after grant date. On July 1, 2010, the Company granted a total of 80,000 stock options to two independent directors with contractual terms of 5 years. The exercise price of these stock options is $4.20 per share and the grant-date fair value of these stock options amounted to approximately $0.1 million. A total of 40,000 options shall vest and become exercisable one year after the grant date and the remaining 40,000 options shall vest and become exercisable two years after the grant date, provided that the independent directors are re-elected for successive one year terms one year after the stock options issuance date. On August 4, 2010, the Company granted a total of 700,000 stock options to employees with a contractual term of 5 years. The exercise price of these stock options was $4.50 per share and the grant-date fair value of these stock options amounted to approximately $1.3 million. These stock options were to vest over three years as follows: 30% shall vest and become exercisable one year after the grant date, 40% shall vest and become exercisable two years after the grant date and 30% shall vest and become exercisable three years after the grant date. On December 29, 2010, 600,000 of these stock options were cancelled. As compensation for such cancellation, the Company committed to pay these employees incremental cash payments during the period through August 2013. The fair value of the committed cash payment at the date of commitment was approximately $0.4 million and no incremental compensation cost resulted from the cancellation of these stock options. There is no unrecognized compensation cost related to employee stock options as of December 31, 2015 and December 31, 2014. There were no share options granted during the years ended December 31, 2015 and 2014. A summary of the share options activity is as follows: Number of Options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Balance as of January 1, 2014 1,793,000 $ 4.2 0.5 $ - Forfeited (1,793,000 ) 4.2 0.5 - Balance as of December 31, 2014 and 2015 - $ - - $ - Exercisable as of December 31, 2014 and 2015 - $ - - $ - No stock options have been vested during the years ended December 31, 2015 and 2014. (b) Non-employee stock option grants A summary of stock options granted to non-employees for the year ended December 31, 2015 and 2014 is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Outstanding as of January 1, 2014 40,000 $ 4.20 0.5 years $ - Forfeited (40,000 ) 4.20 0.5 years - Outstanding as of December 31, 2014 and 2015 - $ - - $ - Exercisable as of December 31, 2014 and 2015 - $ - - $ -

Statutory Reserves

Statutory Reserves	12 Months Ended
	Dec. 31, 2015
Statutory Reserves [Abstract]
STATUTORY RESERVES	16 STATUTORY RESERVES Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan synthetic Rubbers, Zhongkexuneng and Guangxi Keyuan are required to allocate at least 10% of their after tax profits as determined under generally accepted accounting principles in the PRC to a statutory surplus reserve until the reserve balances reach 50% of their respective registered capitals. As of December 31, 2015 and December 31, 2014, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan synthetic Rubbers, Zhongkexuneng and Guangxi Keyuan had made appropriations to this statutory reserve of approximately $6.1 million and $5.8 million, respectively.

Stock Repurchase Program

Stock Repurchase Program	12 Months Ended
	Dec. 31, 2015
Series B Convertible Preferred Stock and Related Financing Agreements/ Stock Repurchase Program [Abstract]
STOCK REPURCHASE PROGRAM	17 STOCK REPURCHASE PROGRAM On September 17, 2012, the Company’s Board of Directors authorized the repurchase of $2 million of the Company’s common stock for up to $1.50 per share. During the fiscal year 2014, the Company repurchased 298,962 shares for approximately $306,852. No common stock was repurchased during the fiscal year 2015. Shares of common stock repurchased by the Company are recorded at cost as treasury stock and result in a reduction of equity in the consolidated balance sheets. Treasury shares may be reissued as part of the Company’s stock-based compensation programs. There were no reissuances during the years ended December 31, 2015 and 2014.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	18 COMMITMENTS AND CONTINGENCIES (a) Operating commitments The Group had outstanding Letter of Credit as of December 31, 2015 of approximately $37 million. (b) Capital commitments As of December 31, 2015, the Group had contractual capital commitments of approximately $12.8 million for purchases of equipment. The capital commitments relate primarily to manufacturing equipment updates. (c) Litigation On November 15, 2011, the Company and several of its officers were named in a securities class action, alleging violation of federal securities laws by issuing materially false and misleading statements and omitting material facts with regard to disclosure of related party transactions and effectiveness of internal controls in past public filings. On August 26, 2013, the case was transferred to the Southern District of New York. An Order and Final judgement was entered on October 9, 2015. The case is now dismissed. On July 2, 2013, the United District Court for the District of Columbia issued a final judgment approving a settlement between the Company and the Securities Exchange and Commission. The settlement was reached on February 28, 2013 in a case filed by the SEC in the United States District Court for the District of Columbia against us, alleging the Company’s violation of Sections 17(a)(2) and 17(a)(3) of the Securities Act, Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20 and 13a-13 thereunder. Under the terms of the settlement, the Company, without admitting or denying the allegation of the complaint, paid a civil penalty of US$1 million and were permanently enjoined from violating certain securities law. On February 13, 2014, the Brown Law Firm filed a derivative action suit on behalf of the Company, alleging certain and former current officers and directors of the Company had violated their fiduciary duties between at least April 22, 2010 to October 20, 2011. The Company and Plaintiff entered a settlement of the derivative action suit pursuant to the term of a Stipulation of Settlement. On October 5, 2015, the Court entered an order granting final approval of the settlement. The case is now dismissed. On October 30, 2014, in connection with a motion for a temporary restraining order and preliminary injunction filed by Dragon State against the Company and Mr. Chunfeng Tao, a Consent Order was issued by the Court whereby the Company and Mr. Chunfeng Tao agree that, notwithstanding anything contained in the Certificate of Designations, Preferences and Rights of the Series B Convertible Preferred Stock to the contrary, the 5,333,334 shares of Series B Preferred Stock held by Dragon State have not been, and shall not be, automatically converted into shares of Company’s common stock, or any other security prior to the resolution of the above mentioned action; and the expiration of Series C and Series D warrants shall be tolled pending the resolution of the above mentioned action as well. On October 28, 2014, Dragon State initiated a litigation against the Company, Mr. Chunfeng Tao, and Aichun (Angela) Li in the Court, alleging that the Company and Mr. Chunfeng Tao had violated the securities laws, made material misrepresentations, and breach their duties under the September 28, 2010 Securities Purchase Agreement between Dragon State and the Company. In connection with the complaint, a consent order was issued by the District Court for the Southern District of New York whereby the Company and Mr. Chunfeng Tao agreed that the expiration date of the Series B convertible preferred stock should be tolled pending the resolution of the complaint. On July 11, 2016, the Company and certain affiliates of the Company entered into a share purchase and settlement agreement with Dragon State and others (the “Settlement Agreement”), pursuant to which, Dragon State agreed to transfer the securities of the Company it owned to Delight Reward Limited, a British Virgin Islands company and the controlling shareholder of the Company (“Delight Reward”) and waive all claims and liabilities that Dragon State or its affiliated companies or individuals had brought or would bring against the Company, Delight Reward and certain affiliates of the Company for an aggregate consideration of RMB 18 million or equivalent U.S. dollars. The Settlement Agreement provided that the purchase price for the transfer of the securities pursuant to the Settlement Agreement was RMB 12 million. On August 4, 2016, the Company has entered into a side agreement with Delight Reward in connection with the execution of a settlement agreement and the payment subsequently made thereunder by the Company to Dragon State. Dragon State agreed to transfer the securities of the Company it owned to Delight Reward and waive all claims and liabilities that Dragon State or its affiliated companies or individuals had brought or would bring against the Company, Delight Reward and certain affiliates of the Company, for an aggregate consideration of RMB 18 million or the equivalent in U.S. dollars. Under the Side Agreement, Delight Reward agreed to pay to the Company for each Convertible Share the highest sale price of the Company’s Common Stock per share as reported on the OTC Pink during a period commencing on the date of the Settlement Agreement, which was $0.005 per share of Common Stock, for an aggregate purchase price of $27,465.01. Delight Reward also agreed in the Side Agreement not to claim, or attempt to claim for any reason and in any circumstance, that the Warrants are exercisable.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
INCOME TAXES	19 INCOME TAXES The Company and its subsidiaries file separate income tax returns. The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income tax at progressive rates ranging from 15% to 35%. The state of Nevada does not impose any state corporate income tax. British Virgin Islands Sinotech Group is incorporated in the British Virgin Islands (“BVI”). Under the current laws of the BVI, Sinotech Group is not subject to tax on income or capital gains. In addition, upon payments of dividends by Sinotech Group, no BVI withholding tax is imposed. Hong Kong Keyuan HK is incorporated in Hong Kong. Keyuan HK did not earn any income that was derived in Hong Kong for the years ended December 31, 2015 and 2014, and therefore was not subject to Hong Kong Profits Tax. The payments of dividends by Hong Kong companies are not subject to any Hong Kong withholding tax. PRC Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan synthetic Rubbers, Zhongkexuneng and Guanxi Keyuan are all incorporated in the PRC and the applicable PRC statutory income tax rate for these companies is 25% for the years ended December 31, 2015 and 2014. On June 30, 2014, the local tax authorities granted Guangxi Keyuan the qualification to enjoy the Western Development Enterprise Preferential Tax Policy, which is a 15% income tax rate from the first year when Guangxi Keyuan generate revenue to year 2020. The Company expects Guangxi Keyuan to generate revenue in 2018. Components of loss before income tax expense consist of the following jurisdictions: Year ended December 31, 2015 2014 ($’000) ($’000) PRC $ (51,034 ) $ (42,040 ) U.S. (1,033 ) (1,618 ) Hong Kong and BVI (7,213 ) (420 ) Loss before income taxes $ (59,280 ) $ (44,078 ) The Group’s income tax expense in the consolidated statements of operations and comprehensive loss consists of the following: Year ended December 31, 2015 2014 ($’000) ($’000) Current income tax expense $ 1,222 $ 420 Deferred income tax expense - 2,627 Total income tax expense $ 1,222 $ 3,047 Reconciliation between income tax expense and the amounts computed by applying the PRC statutory income tax rate of 25% to income (loss) before income taxes is as follows: Year ended December 31, 2015 2014 ($’000) % ($’000) % Loss before income taxes $ (59,280 ) $ (44,078 ) Computed expected income tax benefit (14,820 ) 25.0 (11,019 ) 25.0 Tax loss not recognized 11,920 (20.1 ) 13,442 (30.5 ) Effect of different tax rates 871 (1.5 ) 444 (1.0 ) Other 140 (0.2 ) 102 (0.2 ) Permanent differences 3,110 (5.2 ) 78 (0.2 ) Actual income tax expense(benefit) $ 1,222 (2.06 ) $ 3,047 (6.91 ) The PRC income tax rate has been used because the majority of the Group’s consolidated loss before income taxes arises in the PRC. The tax effects of the temporary differences that give rise to significant portions of deferred income tax assets are presented below: As of December 31, 2015 2014 ($’000) ($’000) Net operating tax loss carried forwards $ 23,057 $ 18,194 Prepaid expenses and other current assets 4,876 1,515 Accrued bonus 3 4 Bad debt provision 5,378 1,184 Total deferred income tax assets 33,314 20,897 Valuation allowance (33,314 ) (20,897 ) Net deferred tax assets - current $ - $ - Deferred tax assets arising from net operating loss carry forwards (“NOL’S”) from the Group’s operations outside of the PRC were approximately $8.2 million and $7.5 million as of December 31, 2015 and December 31, 2014, respectively. Management has determined that the Group may not generate sufficient taxable income in those jurisdictions to realize the deferred tax asset. Accordingly, a valuation allowance was provided. As of December 31, 2015, NOL’S and their expiration dates arose in the following jurisdictions: Expiration date December 31, 2015 US $ 6,976 Not applicable Hong Kong 7,611 Not applicable BVI - Not applicable According to the prevailing PRC income tax law and its relevant regulations, non-PRC-resident enterprises are levied withholding tax at 10%, unless reduced by tax treaties or similar arrangements, on dividends from their PRC-resident investees for earnings accumulated beginning on January 1, 2008, and undistributed earnings generated prior to January 1, 2008 are exempted from such withholding tax. Further, the Group’s distributions from its PRC subsidiaries are subject to U.S. federal income tax at 34%, less any applicable qualified foreign tax credits. Due to the Group’s policy of reinvesting permanently its earnings in its PRC business, the Group has not provided for deferred income tax liabilities for U.S. federal income tax purposes on its PRC subsidiaries’ undistributed loss of $33 million and undistributed earnings of $9 million as of December 31, 2015 and December 31, 2014, respectively. For the years ended December 31, 2015 and 2014, the Group did not have unrecognized tax benefits, and therefore no interest or penalties related to unrecognized tax benefits were accrued. Management does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. The Group mainly files income tax returns in the United States and the PRC. The Company is subject to U.S. federal income tax examination by tax authorities for tax years beginning in 2010. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances where the underpayment of taxes is more than RMB100,000 ($15,000). In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The PRC tax returns for the Company’s PRC subsidiaries are open to examination by the PRC state and local tax authorities for the tax years beginning in 2008.

Loss Per Share

Loss Per Share	12 Months Ended
	Dec. 31, 2015
Loss Per Share [Abstract]
LOSS PER SHARE	20 LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share: Years ended 2015 2014 ($’000) ($’000) Basic loss per share: Net loss $ (60,502 ) $ (47,125 ) Net loss attributed to non-controlling interests (464 ) - Net loss contributable to Keyuan Petrochemicals Inc. common stockholders $ (60,038 ) $ (47,125 ) Weighted average common share outstanding (Denominator for basic loss per share) 57,221,050 57,304,255 Basic net loss per share: $ (1.05 ) $ (0.82 ) Diluted net loss per share: $ (1.05 ) $ (0.82 )

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	21 FAIR VALUE MEASUREMENTS The Company did not have any assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014, respectively. The fair values of cash, pledged bank deposits, notes receivable, accounts receivable, short-term bank borrowings, notes payable, and accounts payable approximate their respective carrying amounts due to their short-term nature. Amounts due to/from related parties are not practicable to estimate due to the related party nature of the underlying transactions.

Significant Concentrations and

Significant Concentrations and Risks	12 Months Ended
	Dec. 31, 2015
Significant Concentrations and Risks [Abstract]
SIGNIFICANT CONCENTRATIONS AND RISKS	22 SIGNIFICANT CONCENTRATIONS AND RISKS As of December 31, 2015 and December 31, 2014, the Group held cash and pledged bank deposits in financial institutions of approximately $288 million and $349 million, respectively. They were primarily held in major financial institutions located in mainland China and the Hong Kong Special Administrative Region, which management believes have high credit ratings. During the year s ended December 31, 2015 and 2014, no sales to individual customer exceeded 10% of the Group’s total net revenues. At December 31, 2015, three customers accounted for 42%, 38% and 18% of accounts receivable. At December 31, 2014, three customers accounted for 29%, 26% and 22% of accounts receivable. The Group currently buys a majority of its heavy oil, an important component of its products, from three suppliers. Although there are a limited number of suppliers of a particular heavy oil used in production, management believes that other suppliers could provide similar heavy oil on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely. Purchases (net of VAT) from the largest three suppliers for the years ended December 31, 2015 and 2014 were approximately $308.3 million and $609.7 million, respectively. These purchases represented 73% and 78%, respectively of all of the Group’s purchases for the years ended December 31, 2015 and 2014. The Company’s largest supplier accounted for approximately $140 million and $613 million, or 57% and 68% of total purchases for the years ended December 2015 and 2014, respectively. The Company commenced trading of heavy oil in April 2013 , whereby the Company functions as an agent on behalf of a Hong Kong-based customer. For the years ended December 31, 2015 and 2014, the trading of heavy oil consists of purchases of approximately $3 million and $1,769 million, and sales of approximately $3 million, and $1,774 million, resulting in a gain of nil and $4 million, that has been included in cost of sales in the consolidated statement of operations and comprehensive loss. The Group’s operations are carried out in the PRC. Accordingly, the Group’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, as well as by the general state of the PRC’s economy. The business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittances abroad, and rates and methods of taxation, among other things.

Related Party Transactions and

Related Party Transactions and Relationships and Transactions With Certain Other Parties	12 Months Ended
	Dec. 31, 2015
Related Party Transactions and Relationships and Transactions With Certain Other Parties [Abstract]
RELATED PARTY TRANSACTIONS AND RELATIONSHIPS AND TRANSACTIONS WITH CERTAIN OTHER PARTIES	23 RELATED PARTY TRANSACTIONS AND RELATIONSHIPS AND TRANSACTIONS WITH CERTAIN OTHER PARTIES (A) Related Party Transactions The Company considers all transactions with the following parties to be related party transactions. Name of parties Relationship Mr. Chunfeng Tao (“Mr. Tao”) Majority stockholder Mr. Peijun Chen (“Mr. Chen”) Principal stockholder Mr. Jicun Wang Principal stockholder Ms. Sumei Chen Member of the Company's Board of Supervisors and spouse of Mr. Wang Ms. Yushui Huang (“Ms. Huang”) Vice President of Administration, Ningbo Keyuan Mr. Dingan Zhang (“Mr. Zhang”) Former Chief Financial Officer of Ningbo Keyuan (October 2015 - April 2016) Ningbo Pacific Ocean Shipping Co., Ltd (“Ningbo Pacific”) 100% ownership by Mr. Zhang Ningbo Hengfa Metal Product Co., Ltd (Ningbo Hengfa, former name “Ningbo Tenglong”) 100% ownership by Mr. Chen Ningbo Xinhe Logistic Co., Ltd (“Ningbo Xinhe”) 10% ownership by Ms. Huang Related party transactions and amounts outstanding with the related parties as of December 31, 2015 and December 31, 2014 and for the years then ended are summarized as follows: Year ended December 31, 2015 2014 ($’000) ($’000) Purchase of transportation services (a) $ 1,821 $ 3,117 As of December 31, 2015 2014 ($’000) ($’000) Amounts due from related parties (b) $ 92 $ 53 Amounts due to related parties (b) $ 4,592 $ - Account payable to related parties $ 739 $ 839 (a) Purchase of service from related parties consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Ningbo Xinhe (Transportation expenses) $ 1,821 $ 3,117 (b) Amount due to related parties consists of the following: As of December 31, 2015 2014 ($’000) ($’000) Mr. Tao $ 4,592 $ - Amount due from related parties consists of the following: As of December 31, 2015 2014 ($’000) ($’000) Mr. Tao $ 46 $ 48 Others 46 5 (c) Guarantees for Bank Loans Guarantee provided by Mr. Tao amounted $ 138.6 million and $147.1 million as of December 31, 2015 and 2014. Bank loans guarantee Mr. Tao amounted $95.9 million and $15.1 million as of December 31, 2015 and 2014. (B) Relationships and transactions with certain other parties The Group has the following relationships and transactions with certain other parties: Name of parties Relationship Ningbo Litong Petrochemical Co., Ltd (“Ningbo Litong”) Former 12.75% nominee shareholder of Ningbo Keyuan Huaning International Trading Co., Ltd (“Huaning”) The director of Huaning is the shareholder and director of Ningbo Xinghe, one of the Group’s related parties Mercuria energy trading Pte Ltd (“Mercuria”) Major supplier Ningbo Anqi Petrochemical Co., Ltd (“Ningbo Anqi”) A related party through September 2011 when control transferred Ningbo Kunde Petrochemicals (“Ningbo Kunde”) A related party through September 2011 when control transferred Ningbo Lide Investment Co., Ltd. (“Ningbo Lide”, f/k/a Ningbo Kewei) A related party through September 2011 when control transferred Transactions and amounts outstanding with these parties as of December 31, 2015 and December 31, 2014 and for the years then ended are summarized as follows: Year ended December 31, 2015 2014 ($’000) ($’000) Sales of products (d) $ 51,413 $ 27,630 Purchase of raw materials (e) $ 277,433 $ 635,775 Guarantee for bank borrowings (f) $ 310,276 $ 422,221 As of December 31, 2015 2014 ($’000) ($’000) Amounts due from these parties (g) $ 3,907 $ 5,723 Amount due to these parties (h) $ - $ 163 Advance payments to these parties(i) $ 4,552 $ 7,139 Advance received from these parties (j) $ 4 $ 1,657 Accounts receivables (k) $ - $ 13,367 Accounts payables (l) $ 41,269 $ 22,660 Notes payable (m) $ 140,715 $ 39,827 Notes receivable (n) $ 514 $ - (d) The Group sold finished products of approximately $25. 9 million and $15.1 million to Ningbo Litong for the years ended December 31, 2015 and 2014, respectively. The Group sold finished products of approximately $25.6 million and $10.0 million to Ningbo Lide for the years ended December 31, 2015 and 2014, respectively. The Group sold finished products of approximately nil and $2.5 million to Huaning for the years ended December 31, 2015 and 2014, respectively. (e) The Group purchased raw materials of approximately $131.4 million and $63.2 million from Ningbo Litong for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $112.0 million and $26.7 million from Ningbo Lide for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $31.2 million and $545.9 million from Mercuria for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $2.8 million and nil from Huaning for the years ended December 31, 2015 and 2014, respectively. (f) Guarantees for Bank Loans: Guarantee as of December 31, 2015 2014 ($’000) ($’000) Ningbo Litong $ 102,379 $ 152,569 Ningbo Lide 207,897 269,652 Total $ 310,276 $ 422,221 Bank loans Guaranteed as of 2015 2014 ($’000) ($’000) Ningbo Litong $ 18,634 $ 72,881 Ningbo Lide 101,783 81,760 Total $ 120,417 $ 154,641 Beginning in January 2011, loan guarantee fees were approximately 0.3% per quarter of the loan principal guaranteed. In January 1, 2014, a supplementary agreement was signed that Ningbo Litong, Ningbo Lide and Mr. Tao agreed to cease the charge of loan guarantee fees from the Company. No guarantee fees were paid for the years ended December 31, 2015 and 2014, respectively. (g) At December 31, 2015 and 2014 amount due from these parties consist of amount due from Huaning of $3.9 million and $0.1 million, respectively, amount due from Mercuria of nil and $5.7 million, respectively. (h) At December 31, 2015 and 2014 amount due to these parties consist of amount due to Ningbo Litong of nil and $0.2 million, respectively. (i) At December 31, 2015 and 2014 advances payment to these parties consist of payment to Ningbo Litong of nil and $4.4 million, respectively, and Ningbo Lide of $4.6 million and $2.7 million, respectively. (j) At December 31, 2015 and 2014 advances received from these parties consist of amounts received from Ningbo Litong of nil and $0.1 million, respectively, amounts received from Huaning of $0.1 million and nil, respectively, and amounts received from Ningbo Lide of nil and $1.6 million, respectively. (k) At December 31, 2015 and 2014 account receivable from these parties consist of account receivable from Ningbo Litong of nil and $7.3 million, respectively, account receivable from Ningbo Lide of nil and $6.1 million, respectively. (l)At December 31, 2015 and 2014 accounts payable to these parties consist of payable to Ningbo Litong of $1.4 million and nil, respectively, payable to Ningbo Lide of nil and $3.8 million, respectively, and payable to Mecuria of $39.9 million and $18.9 million, respectively. (m) At December 31, 2015 and 2014 notes payable to these parties consist of notes payable to Ningbo Litong of $68.6 million and $20.6 million, respectively, payable to Ningbo Lide of $72.2 million and $7.6 million, respectively, and payable to Mecuria of nil and $11.6 million, respectively. (n) At December 31, 2015 and 2014 notes receivable from these parties consist of notes receivable from Ningbo Litong of $0.5 million and nil, respectively, notes receivable from Ningbo Lide of $0.1 million and nil, respectively.

Consolidated Segment Data

Consolidated Segment Data	12 Months Ended
	Dec. 31, 2015
Consolidated Segment Data [Abstract]
CONSOLIDATED SEGMENT DATA	24 CONSOLIDATED SEGMENT DATA Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflect this segment structure. The Company reports financial and operating information in the following two segments: (a) Petrochemicals Segment: Manufacturing and sales of mixed light aromatics, mixed heavy aromatics, fine propylene, propane, butane, liquefied petroleum gas (LPG), methyltert-butylether, styrene, etc. (b) Rubber Segment: Manufacturing and sales of various rubber products. Segment information for the years ended December 31, 2015 and 2014 is as follows: Year end December 31, 2015 Year end December 31, 2014 Petrochemical Rubber Total Petrochemical Rubber Total ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Sales $ 410,287 $ 64,073 $ 474,360 $ 627,635 $ 25,862 $ 653,497 Loss from operations $ (5,218 ) $ (4,583 ) $ (9,801 ) $ (19,357 ) $ 282 $ (19,075 ) Interest income $ 12,121 $ 110 $ 12,231 $ 9,998 $ 111 $ 10,109 Interest expense $ 36,970 $ 1,013 $ 37,983 $ 26,077 $ - $ 26,077 Depreciation $ 11,455 $ 3,810 $ 15,265 $ 9,949 $ 3,716 $ 13,665 Amortization $ 243 $ - $ 243 $ 148 $ - $ 148 Income tax (benefit) expense $ - $ 1,222 $ 1,222 $ 3,047 $ - $ 3,047 (Deductions) additions of property, plant and equipment $ (12,817 ) $ (4,510 ) $ (17,327 ) $ 70,529 $ 9,698 $ 80,227 Total assets $ 724,008 $ 105,687 $ 829,695 $ 791,582 $ 119,083 $ 910,665

Keyuan Petrochemicals, Inc. (Pa

Keyuan Petrochemicals, Inc. (Parent Company)	12 Months Ended
	Dec. 31, 2015
Keyuan Petrochemicals, Inc. (Parent Company) [Abstract]
Keyuan Petrochemicals, Inc. (Parent Company)	25 Keyuan Petrochemicals, Inc. (Parent Company) Relevant PRC statutory laws and regulation permit payments of dividends by the Company’s subsidiaries in the PRC only out of their retained earnings, if any, as determined in accordance with the PRC accounting standards and regulations. Under the laws of the PRC on enterprises with wholly owned foreign investment, the Company’s subsidiaries in the PRC are required to allocate at least 10% of their after tax profits, after making good their accumulated losses as reported in their PRC statutory financial statements, to the general reserve fund and have the right to discontinue allocations to the general reserve fund if the balance of such reserve has reached 50% of their registered capital. These statutory reserves are not available for distribution to the shareholders (except in liquidation) and may not be transferred in the form of loans, advances, or cash dividends. As of December 31, 2015 and December 31, 2014, approximately $6.1 million and $5.8 million was appropriated from retained earnings and set aside for the statutory reserve by the Company’s subsidiaries in the PRC, respectively. As a result of these PRC laws and regulations, the Company’s subsidiaries in the PRC are restricted in their ability to transfer a portion of their net assets, either in the form of dividends, loans or advances, and consisting of paid-in capital and statutory reserves amounting to approximately $265 million and $204 million as of December 31, 2015 and December 31, 2014, respectively. The following presents condensed unconsolidated financial information of the Parent Company only: Condensed Balance Sheets: As of December 31 2015 2014 Cash $ 5 $ 5 Other current assets 21 21 Investment in subsidiaries 41,774 41,774 Total assets $ 41,800 $ 41,800 Accounts payable $ 272 $ 272 Accrued expenses and other payables 6,619 5,619 Inter-company liabilities 12,865 12,832 Dividends payable 2,382 2,382 Series B convertible preferred stock - - Total stockholders' equity 19,662 20,695 Total liabilities and stockholders’ equity $ 41,800 $ 41,800 Condensed Statements of Operations: Year ended December 31, 2015 2014 ($’000) ($’000) General and administrative expenses $ 1,033 $ 1,618 Interest expense - - Net loss $ 1,033 $ 1,618 Condensed Statements of Cash Flows: Year Ended December 31, 2015 2014 Cash flows from operating activities: Net Loss $ (1,033 ) $ (1,618 ) Adjustments to reconcile net loss to net cash used in operating activities: Share-based compensation expense - - Decrease in other assets - - Decrease in accounts payable, accrued expenses and other payables 1,033 1,618 Net cash used in operating activities - - Cash flow from financing activities: Advance from inter-group company - - Net cash provided by financing activities - - Net decrease in cash - - Cash at beginning of period 5 5 Cash at end of period $ 5 $ 5

Amounts Due From (To) Non-Contr

Amounts Due From (To) Non-Controlling Interests	12 Months Ended
	Dec. 31, 2015
Amounts Due From (To) Non-Controlling Interests [Abstract]
AMOUNTS DUE FROM (TO) NON-CONTROLLING INTERESTS	26 AMOUNTS DUE FROM (TO) NON-CONTROLLING INTERESTS The Group has the following relationships and transactions with non-controlling interest: Name of party Relationship Hengyun Non-controlling shareholder of Guangxi Keyuan since 2015 (details disclosed in Note 1) Transactions and amounts outstanding with this party as of December 31, 2015 and December 31, 2014 and for the years then ended are summarized as follows: Year ended December 31, 2015 2014 ($’000) ($’000) Sales of products $ 29,516 $ 2,775 Purchase of raw materials $ 138,495 $ 10,127 As of December 31, 2015 2014 ($’000) ($’000) Amount due to non-controlling interest shareholder $ - $ 80,896 Advance payments to non-controlling interest shareholder $ 2,222 $ 2,159 Accounts receivables $ 17,153 $ 843 Accounts payables $ - $ 4,570 Notes payable $ 90,601 $ -

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	27 SUBSEQUENT EVENTS On July 11, 2016, the Company and certain affiliates of the Company entered into a Settlement Agreement with Dragon State and others, pursuant to which, Dragon State agreed to transfer the securities of the Company it owned to Delight Reward and waive all claims and liabilities that Dragon State or its affiliated companies or individuals had brought or would bring against the Company, Delight Reward and certain affiliates of the Company for an aggregate consideration of RMB 18 million or equivalent U.S. dollars. The Settlement Agreement provided that the purchase price for the transfer of the securities pursuant to the Settlement Agreement was RMB 12 million. On August 4, 2016, the Company has entered into the Side Agreement with Delight Reward in connection with the execution of the Settlement Agreement and the payment subsequently made thereunder by the Company to Dragon State. Under the Side Agreement, Delight Reward agreed to pay to the Company for each convertible shares underlying the Series B convertible preferred shares, the highest sale price of the Company’s Common Stock per share as reported on the OTC Pink during a period commencing on the date of the Settlement Agreement, which was $0.005 per share of Common Stock, for an aggregate purchase price of $27,465.01. Delight Reward also agreed in the Side Agreement not to claim, or attempt to claim for any reason and in any circumstance, that the Series C and Series D warrants are exercisable.

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Principles of consolidation and basis of presentation	(a) Principles of consolidation and basis of presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the financial statements of the Company. All significant intercompany transactions and balances are eliminated on consolidation.
Use of estimates	(b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment; the fair value determination of financial and equity instruments; the realizability of inventories; and the recoverability of long-lived assets, realization of deferred tax assets and collectability of receivables. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable.
Foreign currency transactions and translation	(c) Foreign currency transactions and translation The functional currency of the Company, Sinotech Group and Keyuan HK is the U.S. dollar. The functional currency of the PRC operating subsidiaries is the Renminbi (“RMB”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at each balance sheet date, and non-monetary items are translated at historical rates. The resulting exchange differences on these transactions are recorded in foreign exchange gain (loss), net in the consolidated statements of operations and comprehensive loss. The Group’s reporting currency is the U.S. dollar. Assets and liabilities of the PRC operating subsidiaries are translated into the U.S. dollar using the exchange rates at each balance sheet date. The balance sheet amounts at December 31, 2015 and 2014, with the exception of equity, were translated at RMB 6.4936 and 6.1190 6.2264 and 6.1426
Cash	(d) Cash Cash consists of cash on hand and cash at banks. As of December 31, 2015 and December 31, 2014, cash of 4.8 million and $0.9 million, respectively, was held in major financial institutions located in the PRC. Management performs periodic evaluations of the relative credit standings of those financial institutions, and believes that they have high credit ratings.
Pledged bank deposits	(e) Pledged bank deposits Pledged bank deposits represent amounts held by financial institutions, which are not available for the Group’s use, as security for issuances of notes payable to the Group’s suppliers, or as security for short-term bank borrowings. Upon maturity of the bills, which generally occurs within three to six months after the issuance of the bills, or upon the repayment of short-term bank borrowings, the deposits are released by the financial institutions and become available for use by the Group. Pledged bank deposits related to the purchase of inventories are reported within cash flows from operating activities and pledged bank deposits related to short-term bank borrowings are reported within cash flows from financing activities in the consolidated statements of cash flows.
Inventories	(f) Inventories Inventory is stated at the lower of cost or market. Cost is determined using the weighted-average cost method. Written-downs are made for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value. Management continually evaluates the recoverability based on assumptions about customer demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory written-downs may be required. The Group recorded $4.4 million for slow-moving and obsolete inventory as of December 31, 2014. The Group did not record any written-down for slow-moving and obsolete inventory for other periods presented in this report.
Accounts receivable, net	(g) Accounts receivable, net With the approval of the Company’s general manager, the Company occasionally extends unsecured credit to its long-term customers with a good credit rating. An allowance for doubtful accounts is established and recorded based on management’s assessment of its analysis of trade receivables, customers’ credit-worthiness, past collection history, and changes in customers’ payment records. The Company writes-off accounts receivable when accounts are deemed uncollectible. At December 31, 2015 and 2014, the Group recorded $1.8 million and nil provision for doubtful accounts made in the consolidated financial statements, respectively.
Property, plant and equipment	(h) Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, taking into consideration the assets’ estimated residual value. When items are retired or otherwise disposed of, income is charged or credited for the difference between the net book value and proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. The estimated useful lives of property, plant and equipment are as follows: Buildings 45 years Plant, machinery and equipment 5 to 20 years Vehicles 5 years Office equipment and furniture 3 to 10 years Construction-in-progress is stated at cost. Cost comprises nonrefundable prepayments during the period of the construction of the plant or installation of equipment. Costs included in construction-in-progress are transferred to their respective categories of property, plant and equipment when the assets are ready for their intended use, at which time depreciation commences.
Long-Lived Assets	(i) Long-Lived Assets In accordance with Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 360-10, the Group reviews the recoverability of its long-lived assets on a periodic basis in order to identify business conditions, which may indicate a possible impairment. The assessment for potential impairment is based primarily on the Group’s ability to recover the carrying value of its long-lived assets from expected future undiscounted cash flows. If the total of the expected future undiscounted cash flows is less than the total carrying value of the assets, a loss is recognized for the difference between the fair value (computed based upon the expected future discounted cash flows) and the carrying value of the assets. No impairment is believed to exist at December 31, 2015 and December 31, 2014.
Land use rights	(j) Land use rights Land use rights represent the exclusive right to occupy and use a piece of land in the PRC for a specified contractual term. Land use rights are recorded at cost and amortized on a straight-line basis over the terms of the land use rights of 15 to 50 years.
Notes receivable and notes payable	(k) Notes receivable and notes payable The Group utilizes banker’s acceptances in the form of notes receivable and notes payable. For certain major customers, the Group accepts their payments for the Group’s products by notes receivable. Notes receivable represent short-term notes receivable issued either by a customer or by a customer and an accepting bank that entitles the Group to receive the full face amount from such customer or such accepting bank at maturity, which is generally six months from the date of issuance. Notes receivable are typically sold at a discount prior to maturity, and the discount is included in interest expense. Historically, the Group has experienced no losses on notes receivable from the default of counter parties. Notes payable represent bills issued by an accepting bank in favor of the Group’s suppliers. The Group’s suppliers receive payments from such accepting bank directly upon maturity of the bills, and the Group is obliged to repay the face value of the bills to such accepting bank. Bills that are not remitted directly by the Group to its suppliers may be sold by the Group to other accepting banks for cash prior to their maturity. Discounts paid are recorded as a component of interest expense. Notes payable with financing nature amounted $312 million and $132 million as of December 31, 2015 and 2014, respectively.
Revenue recognition	(l) Revenue recognition The Group derives its revenue primarily from the sale of petrochemical products. In accordance with the provisions of FASB ASC Topic 605, revenue should not be recognized until it is realized or realizable and earned. Revenues are considered to have been earned when the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues. The Group recognizes revenue when the products are delivered and a customer takes ownership and assumes risks of losses, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. Written sales agreements, which specify price, product, and quantity, are generally used as evidence of an arrangement. Customer acceptance is generally evidenced by a carrier signed shipment notification form. In the PRC, value added tax (“VAT”) of 17% on invoiced amounts, and consumption tax of $190 per ton on certain sales, are collected on behalf of tax authorities. Revenue is recorded net of VAT and consumption tax. VAT and consumption tax paid for purchases, net of VAT and consumption tax collected from customers, is recorded in other current assets and consumption tax recoverable, respectively.
Share-based compensation	m) Share-based compensation The Group accounts for share-based payments under the provisions of FASB ASC Topic 718, “Compensation-Stock Compensation”. Under ASC Topic 718, the Group measures the costs of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the costs over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group accounts for equity instruments issued to non-employee vendors in accordance with the provisions of FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-Employees”. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the equity instrument issued. The measurement date for the fair value of the equity instruments issued is the date on which the counter party’s performance is completed.
Employee benefit plans	(n) Employee benefit plans Pursuant to relevant PRC regulations, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan synthetic Rubbers, Zhongkexuneng and Guangxi Keyuan are required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 26.7% to 28.7% on a standard salary base as determined by the local security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of operations and comprehensive loss when the related service is provided. For each of the years ended December 31, 2015 and 2014, contributions to the defined contribution plans were approximately $1 million and $1 million, respectively. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above.
Income taxes	(o) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized. As of December 31, 2015 and 2014, $ 33.3 million and $20.9 million valuation allowance were provided against deferred tax assets. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest related to unrecognized tax benefits as part of income tax expense in the consolidated statements of comprehensive income. There were no unrecognized tax benefits as of December 31, 2015 and 2014, respectively. Management does not anticipate any potential future adjustments in the next twelve months, which would result in a material change to its tax position. For periods presented, the Group did not incur any interest and penalties.
Fair value measurements	(p) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 inputs are unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety.
Earnings (loss) per share	(q) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to the Company’s common stockholders by the weighted average number of common stock outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to the Company’s stockholders as adjusted for the effect of dilutive common stock equivalents, if any, by the weighted average number of common stock and dilutive common stock equivalents outstanding during the year. Common stock equivalents consist of the common stock issuable upon the conversion of the Group’s Series B convertible preferred stock (using the if–converted method) and common stock issuable upon the exercise of outstanding stock options and stock purchase warrants (using the treasury stock method). Potential dilutive securities are not included in the calculation of dilutive earnings (loss) per share if the effect is anti-dilutive. No warrants and options were included from diluted earnings per share for the years ended December 31, 2015 and 2014, respectively, as their effect was anti-dilutive.
Segment reporting	(r) Segment reporting The Group’s chief operating decision maker has been identified as its Chief Executive Officer (CEO). The Group has two operating segments; the manufacture and sale of petrochemical products (“petrochemical segment”) and the manufacture and sale of rubber products (“rubber segment”). Substantially all of the Company’s operations and customers are located in the PRC.
Contingencies	(s) Contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
Recent accounting pronouncements	(t) Recent accounting pronouncements In August 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in this ASU defer the effective date of ASU No. 2014-09 for all entities by one year. ASU No. 2014-09, issued in May 2014, clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. Simultaneously, this ASU supersedes the revenue recognition requirements in ASC Topic 605-Revenue Recognition and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of this ASU requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”. The amendments in this ASU do not change the core principle of the guidance. The amendments clarify the implementation guidance on principal versus agent considerations. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The amendments in this ASU affect the guidance in ASU No. 2014-09, which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements of ASU No. 2014-09, which is deferred by ASU No. 2015-14 by one year. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In March 2016, the FASB issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The amendments in this ASU affected all entities that issue share-based payment awards to their employees. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. The amendments in this ASU do not change the core principle of the guidance in Topic 606. Rather, the amendments in this ASU clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14 defers the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Schedule of estimated useful lives of property, plant and equipment	Buildings 45 years Plant, machinery and equipment 5 to 20 years Vehicles 5 years Office equipment and furniture 3 to 10 years

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventories [Abstract]
Schedule of Inventories	As of December 31, 2015 2014 ($’000) ($’000) Raw materials $ 34,116 $ 33,647 Finished goods 18,003 53,959 Work-in-process 3,611 1,177 Total $ 55,730 $ 88,783

Other Current Assets (Tables)

Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Other Current Assets [Abstract]
Schedule of other current assets	As of December 31, 2015 2014 ($’000) ($’000) VAT recoverable $ 10,397 $ 72,693 Customs deposits for imported inventories 2 2,541 Deposit paid to suppliers 3,907 9,224 Prepaid EIT - 574 Other 4,743 3,837 $ 19,049 $ 88,869

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Summary of property, plant and equipment	As of December 31, 2015 2014 ($’000) ($’000) Buildings $ 6,898 $ 7,320 Plant, machinery and equipment 316,087 332,885 Vehicles 1,149 1,321 Office equipment and furniture 380 314 Construction-in-progress 15,117 3,345 339,631 345,185 Less: accumulated depreciation (66,485 ) (55,022 ) $ 273,146 $ 290,163
Depreciation expense on property, plant and equipment	Year ended December 31, 2015 2014 ($’000) ($’000) Cost of sales $ 14,435 $ 12,736 Selling, general and administrative expenses 830 929 $ 15,265 $ 13,665

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Intangible Assets [Abstract]
Summary of intangible assets	Amortization As of December 31, Period 2015 2014 Years ($’000) ($’000) Licensing agreements, software and patent technology 10-20 $ 2,119 $ 1,756 Less: accumulated amortization (1,098 ) (918 ) $ 1,021 $ 838
Summary of amortization expense	Estimated amortization expense ($’000) Year ending December 31, 2016 $ 512 Year ending December 31, 2017 88 Year ending December 31, 2018 67 Year ending December 31, 2019 45 Year ending December 31, 2020 45 Thereafter 264 $ 1,021

Land Use Rights (Tables)

Land Use Rights (Tables)	12 Months Ended
	Dec. 31, 2015
Land Use Rights [Abstract]
Schedule of land use rights	As of December 31, 2013 2012 ($’000) ($’000) Land use rights $ 12,754 $ 12,282 Less: Accumulated amortization (2,091 ) (1,574 ) $ 10,663 $ 10,708
Schedule of future amortization expense	Estimated amortization expense ($’000) Year ending December 31, 2016 $ 739 Year ending December 31, 2017 739 Year ending December 31, 2018 739 Year ending December 31, 2019 739 Year ending December 31, 2020 739 Thereafter 20,061 $ 23,757

Short-Term Bank Borrowings an41

Short-Term Bank Borrowings and Long Term Debts (Tables)	12 Months Ended
	Dec. 31, 2015
Short-Term Bank Borrowings and Long Term Debts [Abstract]
Summary of short-term bank borrowings	As of December 31, 2015 2014 ($’000) ($’000) Bank borrowings $ 360,720 $ 567,525
Summary of short-term borrowings from each bank	Bank Short-term Borrowing as of December 31, Carrying amount of pledged one-year deposit as of December 31, Carrying amount of secured land, buildings or equipment as of December 31, 2015 2014 2015 2014 2015 2014 ($’000,000) ($’000,000) ($’000,000) ($’000,000) ($’000,000) ($’000,000) Shanghai Pudong $ 5.9 $ 43.7 $ - $ 27.0 $ - $ - Bank of China 122.2 133.9 19.5 48.8 - 96.6 China Construction Bank 181.8 162.2 104.5 93.9 - - Agriculture Bank of China 23.1 45.9 - 22.1 - -- Ningbo Commerce Bank 3 16 3.1 11.2 - - Bank of Communication 10.9 19.2 - 3.5 - - Bank of Ningbo - 22 - 9.3 - - China Minsheng Bank 3.3 13.5 - 5.8 - - Bank of Huaxia - 6.8 - 1.3 - - China Merchant Bank 7.7 28.4 0.3 14.1 - - Ping’an Bank 2.8 55.4 2.9 39.7 - - The Import Export Bank of China - 20.5 - - - 35.0 Total $ 360.7 $ 567.5 $ 130.3 $ 276.7 $ - $ 131.6

Accrued Expenses and Other Pa42

Accrued Expenses and Other Payables (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Expenses and Other Payables [Abstract]
Accrued expenses and other payables	As of December 31, 2015 2014 ($’000) ($’000) Purchase of property, plant and equipment $ 12,555 $ 15,924 Accrued payroll and welfare 677 1,176 Liquidated damages 2,493 2,493 Accrued interest expense 7,476 3,705 Accrued expenses according to ongoing lawsuits 10,200 4,908 Loan from unrelated parties 1,540 8,253 Other tax payable 2,765 3,387 Deposit from customers 2,499 - Other accruals and payables 2,449 1,255 $ 42,654 $ 41,101

Common Stock Purchase Warrants

Common Stock Purchase Warrants (Tables)	12 Months Ended
	Dec. 31, 2015
Common Stock Purchase Warrants [Abstract]
Schedule of warrants issued to purchase the Company's common stock	Issuance dates Maximum number of shares of common stock Exercise Prices Series A Warrants April 22 and May 18, 2010 748,704 $ 4.50 Series B Warrants April 22 and May 18, 2010 748,704 $ 5.25 Series C Warrants September 28, 2010 810,002 $ 4.50 Series D Warrants September 28, 2010 810,002 $ 5.25 Placement agent warrants -Series A Private Placement April 22 and May 18, 2010 718,755 3.50 ~ $5.25 -Series B Private Placement September 28, 2010 561,601 $ 3.75 ~ $5.25

Share-Based Payments (Tables)

Share-Based Payments (Tables)	12 Months Ended
	Dec. 31, 2015
Employee stock option grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of stock options activity	Number of Options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Balance as of January 1, 2014 1,793,000 $ 4.2 0.5 $ - Forfeited (1,793,000 ) 4.2 0.5 - Balance as of December 31, 2014 and 2015 - $ - - $ - Exercisable as of December 31, 2014 and 2015 - $ - - $ -
Non-employee stock option grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of stock options activity	Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Outstanding as of January 1, 2014 40,000 $ 4.20 0.5 years $ - Forfeited (40,000 ) 4.20 0.5 years - Outstanding as of December 31, 2014 and 2015 - $ - - $ - Exercisable as of December 31, 2014 and 2015 - $ - - $ -

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Components of loss before income tax expense by jurisdiction	Year ended December 31, 2015 2014 ($’000) ($’000) PRC $ (51,034 ) $ (42,040 ) U.S. (1,033 ) (1,618 ) Hong Kong and BVI (7,213 ) (420 ) Loss before income taxes $ (59,280 ) $ (44,078 )
Schedule of Group's income tax expense	Year ended December 31, 2015 2014 ($’000) ($’000) Current income tax expense $ 1,222 $ 420 Deferred income tax expense - 2,627 Total income tax expense $ 1,222 $ 3,047
Schedule of reconciliation between income tax expense and amounts computed by applying PRC statutory income tax rate	Year ended December 31, 2015 2014 ($’000) % ($’000) % Loss before income taxes $ (59,280 ) $ (44,078 ) Computed expected income tax benefit (14,820 ) 25.0 (11,019 ) 25.0 Tax loss not recognized 11,920 (20.1 ) 13,442 (30.5 ) Effect of different tax rates 871 (1.5 ) 444 (1.0 ) Other 140 (0.2 ) 102 (0.2 ) Permanent differences 3,110 (5.2 ) 78 (0.2 ) Actual income tax expense(benefit) $ 1,222 (2.06 ) $ 3,047 (6.91 )
Schedule of deferred income tax assets	As of December 31, 2015 2014 ($’000) ($’000) Net operating tax loss carried forwards $ 23,057 $ 18,194 Prepaid expenses and other current assets 4,876 1,515 Accrued bonus 3 4 Bad debt provision 5,378 1,184 Total deferred income tax assets 33,314 20,897 Valuation allowance (33,314 ) (20,897 ) Net deferred tax assets - current $ - $ -
Schedule of net operating loss deferred tax assets	Expiration date December 31, 2015 US $ 6,976 Not applicable Hong Kong 7,611 Not applicable BVI - Not applicable

Loss Per Share (Tables)

Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Loss Per Share [Abstract]
Schedule of computation of basic and diluted net loss per share	Years ended 2015 2014 ($’000) ($’000) Basic loss per share: Net loss $ (60,502 ) $ (47,125 ) Net loss attributed to non-controlling interests (464 ) - Net loss contributable to Keyuan Petrochemicals Inc. common stockholders $ (60,038 ) $ (47,125 ) Weighted average common share outstanding (Denominator for basic loss per share) 57,221,050 57,304,255 Basic net loss per share: $ (1.05 ) $ (0.82 ) Diluted net loss per share: $ (1.05 ) $ (0.82 )

Related Party Transactions an47

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Tables)	12 Months Ended
	Dec. 31, 2015
Transactions with related party [Member]
Related Party Transaction [Line Items]
Schedule of Related Party Transactions [Table Text Block]	Year ended December 31, 2015 2014 ($’000) ($’000) Purchase of transportation services (a) $ 1,821 $ 3,117 As of December 31, 2015 2014 ($’000) ($’000) Amounts due from related parties (b) $ 92 $ 53 Amounts due to related parties (b) $ 4,592 $ - Account payable to related parties $ 739 $ 839 (a) Purchase of service from related parties consist of the following: As of December 31, 2015 2014 ($’000) ($’000) Ningbo Xinhe (Transportation expenses) $ 1,821 $ 3,117 (b) Amount due to related parties consists of the following: As of December 31, 2015 2014 ($’000) ($’000) Mr. Tao $ 4,592 $ - Amount due from related parties consists of the following: As of December 31, 2015 2014 ($’000) ($’000) Mr. Tao $ 46 $ 48 Others 46 5
Transactions with certain other parties [Member]
Related Party Transaction [Line Items]
Schedule of Related Party Transactions [Table Text Block]	Year ended December 31, 2015 2014 ($’000) ($’000) Sales of products (d) $ 51,413 $ 27,630 Purchase of raw materials (e) $ 277,433 $ 635,775 Guarantee for bank borrowings (f) $ 310,276 $ 422,221 As of December 31, 2015 2014 ($’000) ($’000) Amounts due from these parties (g) $ 3,907 $ 5,723 Amount due to these parties (h) $ - $ 163 Advance payments to these parties(i) $ 4,552 $ 7,139 Advance received from these parties (j) $ 4 $ 1,657 Accounts receivables (k) $ - $ 13,367 Accounts payables (l) $ 41,269 $ 22,660 Notes payable (m) $ 140,715 $ 39,827 Notes receivable (n) $ 514 $ - (d) The Group sold finished products of approximately $25. 9 million and $15.1 million to Ningbo Litong for the years ended December 31, 2015 and 2014, respectively. The Group sold finished products of approximately $25.6 million and $10.0 million to Ningbo Lide for the years ended December 31, 2015 and 2014, respectively. The Group sold finished products of approximately nil and $2.5 million to Huaning for the years ended December 31, 2015 and 2014, respectively. (e) The Group purchased raw materials of approximately $131.4 million and $63.2 million from Ningbo Litong for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $112.0 million and $26.7 million from Ningbo Lide for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $31.2 million and $545.9 million from Mercuria for the years ended December 31, 2015 and 2014, respectively. The Group purchased raw materials of approximately $2.8 million and nil from Huaning for the years ended December 31, 2015 and 2014, respectively. (f) Guarantees for Bank Loans: Guarantee as of December 31, 2015 2014 ($’000) ($’000) Ningbo Litong $ 102,379 $ 152,569 Ningbo Lide 207,897 269,652 Total $ 310,276 $ 422,221 Bank loans Guaranteed as of 2015 2014 ($’000) ($’000) Ningbo Litong $ 18,634 $ 72,881 Ningbo Lide 101,783 81,760 Total $ 120,417 $ 154,641 Beginning in January 2011, loan guarantee fees were approximately 0.3% per quarter of the loan principal guaranteed. In January 1, 2014, a supplementary agreement was signed that Ningbo Litong, Ningbo Lide and Mr. Tao agreed to cease the charge of loan guarantee fees from the Company. No guarantee fees were paid for the years ended December 31, 2015 and 2014, respectively. (g) At December 31, 2015 and 2014 amount due from these parties consist of amount due from Huaning of $3.9 million and $0.1 million, respectively, amount due from Mercuria of nil and $5.7 million, respectively. (h) At December 31, 2015 and 2014 amount due to these parties consist of amount due to Ningbo Litong of nil and $0.2 million, respectively. (i) At December 31, 2015 and 2014 advances payment to these parties consist of payment to Ningbo Litong of nil and $4.4 million, respectively, and Ningbo Lide of $4.6 million and $2.7 million, respectively. (j) At December 31, 2015 and 2014 advances received from these parties consist of amounts received from Ningbo Litong of nil and $0.1 million, respectively, amounts received from Huaning of $0.1 million and nil, respectively, and amounts received from Ningbo Lide of nil and $1.6 million, respectively. (k) At December 31, 2015 and 2014 account receivable from these parties consist of account receivable from Ningbo Litong of nil and $7.3 million, respectively, account receivable from Ningbo Lide of nil and $6.1 million, respectively. (l)At December 31, 2015 and 2014 accounts payable to these parties consist of payable to Ningbo Litong of $1.4 million and nil, respectively, payable to Ningbo Lide of nil and $3.8 million, respectively, and payable to Mecuria of $39.9 million and $18.9 million, respectively. (m) At December 31, 2015 and 2014 notes payable to these parties consist of notes payable to Ningbo Litong of $68.6 million and $20.6 million, respectively, payable to Ningbo Lide of $72.2 million and $7.6 million, respectively, and payable to Mecuria of nil and $11.6 million, respectively. (n) At December 31, 2015 and 2014 notes receivable from these parties consist of notes receivable from Ningbo Litong of $0.5 million and nil, respectively, notes receivable from Ningbo Lide of $0.1 million and nil, respectively.

Consolidated Segment Data (Tabl

Consolidated Segment Data (Tables)	12 Months Ended
	Dec. 31, 2015
Consolidated Segment Data [Abstract]
Summary of selected information in segment structure presented in following tables	Year end December 31, 2015 Year end December 31, 2014 Petrochemical Rubber Total Petrochemical Rubber Total ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Sales $ 410,287 $ 64,073 $ 474,360 $ 627,635 $ 25,862 $ 653,497 Loss from operations $ (5,218 ) $ (4,583 ) $ (9,801 ) $ (19,357 ) $ 282 $ (19,075 ) Interest income $ 12,121 $ 110 $ 12,231 $ 9,998 $ 111 $ 10,109 Interest expense $ 36,970 $ 1,013 $ 37,983 $ 26,077 $ - $ 26,077 Depreciation $ 11,455 $ 3,810 $ 15,265 $ 9,949 $ 3,716 $ 13,665 Amortization $ 243 $ - $ 243 $ 148 $ - $ 148 Income tax (benefit) expense $ - $ 1,222 $ 1,222 $ 3,047 $ - $ 3,047 (Deductions) additions of property, plant and equipment $ (12,817 ) $ (4,510 ) $ (17,327 ) $ 70,529 $ 9,698 $ 80,227 Total assets $ 724,008 $ 105,687 $ 829,695 $ 791,582 $ 119,083 $ 910,665

Keyuan Petrochemicals Inc. (Par

Keyuan Petrochemicals Inc. (Parent Company) (Tables)	12 Months Ended
	Dec. 31, 2015
Keyuan Petrochemicals, Inc. (Parent Company) [Abstract]
Schedule of condensed balance sheets	As of December 31 2015 2014 Cash $ 5 $ 5 Other current assets 21 21 Investment in subsidiaries 41,774 41,774 Total assets $ 41,800 $ 41,800 Accounts payable $ 272 $ 272 Accrued expenses and other payables 6,619 5,619 Inter-company liabilities 12,865 12,832 Dividends payable 2,382 2,382 Series B convertible preferred stock - - Total stockholders' equity 19,662 20,695 Total liabilities and stockholders’ equity $ 41,800 $ 41,800
Schedule of condensed statements of operations	Year ended December 31, 2015 2014 ($’000) ($’000) General and administrative expenses $ 1,033 $ 1,618 Interest expense - - Net loss $ 1,033 $ 1,618
Schedule of condensed statements of cash flows	Year Ended December 31, 2015 2014 Cash flows from operating activities: Net Loss $ (1,033 ) $ (1,618 ) Adjustments to reconcile net loss to net cash used in operating activities: Share-based compensation expense - - Decrease in other assets - - Decrease in accounts payable, accrued expenses and other payables 1,033 1,618 Net cash used in operating activities - - Cash flow from financing activities: Advance from inter-group company - - Net cash provided by financing activities - - Net decrease in cash - - Cash at beginning of period 5 5 Cash at end of period $ 5 $ 5

Amounts Due From (To) Non-Con50

Amounts Due From (To) Non-Controlling Interests (Tables)	12 Months Ended
	Dec. 31, 2015
Amounts Due From (To) Non-Controlling Interests [Abstract]
Summary of transactions and amounts outstanding with related party	Year ended December 31, 2015 2014 ($’000) ($’000) Sales of products $ 29,516 $ 2,775 Purchase of raw materials $ 138,495 $ 10,127 As of December 31, 2015 2014 ($’000) ($’000) Amount due to non-controlling interest shareholder $ - $ 80,896 Advance payments to non-controlling interest shareholder $ 2,222 $ 2,159 Accounts receivables $ 17,153 $ 843 Accounts payables $ - $ 4,570 Notes payable $ 90,601 $ -

Organization and Nature of Bu51

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Details) - USD ($)

Aug. 10, 2016

Aug. 04, 2016

Jul. 11, 2016

Sep. 17, 2012

Oct. 28, 2014

Feb. 13, 2014

Nov. 15, 2011

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Sep. 16, 2015

May 13, 2014

Mar. 07, 2012

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Net income (loss)

$ (60,502,000)

$ (47,125,000)

$ 4,600,000

Net cash used in operating activities

(112,456,000)

41,460,000

Working capital deficit

284,600,000

Short-term bank borrowings and bills payable

360,700,000

567,500,000

Consumption tax recoverable

44,377,000

$ 11,513,000

Consumption tax refund

$ 44,400,000

Complaint, description

Dragon State Limited ("Dragon State"), an investor in our September 2010 Private Placement, filed a complaint against, among others, the Company and Mr. Chunfeng Tao, seeking rescission of the securities purchase agreement in the September 2010 Private Placement and the return of $20 million, and in the alternative, seeking monetary damages to be determined at a trial but not less than $20 million (the "Complaint").

Common stock, par value

$ 0.001

$ 0.001

Stock purchase price per share

$ 1.50

Short-term bank borrowings and notes payable

$ 695,000,000

Series B Preferred Stock [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Purchase price for common stock shares

$ 20,000,000

Purchase of common stock shares

5,333,340

Series C Warrants [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Purchase of common stock shares

800,001

Stock purchase price per share

$ 4.50

Series D Warrants [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Purchase of common stock shares

800,001

Stock purchase price per share

$ 5.25

Subsequent Event [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Complaint, description

Dragon State agreed to transfer the securities purchased in the September 2010 Private Placement to Delight Reward for a consideration of RMB 12,000,000 or the equivalent amount of US dollars. In addition, Delight Reward and Keyuan Group agreed to pay, and Dragon State agreed to accept, a settlement of RMB 6,000,000 or equivalent amount of US dollars to waive all claims and liabilities that Dragon State or its affiliated companies or individuals had brought or would bring against Delight Reward, Keyuan Group, Tao and their affiliates including the Complaint.

Subsequent Event [Member] | Series B Preferred Stock [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Purchase price for common stock shares

$ 27,465,010

Purchase of common stock shares

5,493,001

Common stock, par value

$ 0.005

The Brown Law Firm [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Related party transaction policy and an payment

$ 190,000

The Rosen Law Firm [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Stipulation of settlement in aggregate amount

$ 2,650,000

Guangxi Keyuan [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Ownership percentage

75.00%

Capital investment

$ 21,700,000

$ 30,500,000

Shareholding percentage

32.88%

Ningbo Keyuan [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Ownership percentage

25.00%

25.00%

Sinotech Group [Member]

Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual)

Ownership percentage

75.00%

Summary of Significant Accoun52

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2015
Buildings [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	45 years
Vehicles [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	5 years
Minimum [Member] | Plant, machinery and equipment [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	5 years
Minimum [Member] | Office equipment and furniture [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	3 years
Maximum [Member] | Plant, machinery and equipment [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	20 years
Maximum [Member] | Office equipment and furniture [Member]
Estimated useful lives of property, plant and equipment
Estimated useful lives of property, plant and equipment	10 years

Summary of Significant Accoun53

Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015CNY (¥)	Dec. 31, 2014USD ($)	Dec. 31, 2014CNY (¥)
Summary of Significant Accounting Policies (Textual)
Exchange rates	$ 1	¥ 6.4936	$ 1	¥ 6.1190
Revenue and expenses reporting currency	1	¥ 6.2264	1	¥ 6.1426
Cash	4,800,000		900,000
Inventory			4,400,000
Provision for doubtful accounts	1,800,000
Notes payable	312,000,000		132,000,000
Employer contribution amount	$ 1,000,000		1,000,000
Minimum percentage of contribution in PRC on employee salary	26.70%	26.70%
Maximum percentage of contribution in PRC on employee salary	28.70%	28.70%
Valuation allowance	$ 33,314,000		$ 20,897,000
Percentage of income tax positions	50.00%	50.00%
Percentage of value added tax on invoiced amounts	17.00%	17.00%
Land use rights [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful lives	15 to 50 years	15 to 50 years

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Components of inventories
Raw materials	$ 34,116	$ 33,647
Finished goods	18,003	53,959
Work-in-process	3,611	1,177
Total	$ 55,730	$ 88,783

Advances from Customers (Detail

Advances from Customers (Details)	Dec. 31, 2015
Advances from Customers (Textual)
Percentage of prepayments required from customers	100.00%

Prepayments to Suppliers (Detai

Prepayments to Suppliers (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Prepayments to Suppliers [Abstract]
Bad debt provision charged to expenses	$ 9.6

Consumption Tax Recoverable (De

Consumption Tax Recoverable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Consumption Tax Recoverable (Textual)
Consumption tax recoverable	$ 44,377	$ 11,513
Consumption tax refund	$ 44,400

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Components of other current assets
VAT recoverable	$ 10,397	$ 72,693
Customs deposits for imported inventories	2	2,541
Deposit paid to suppliers	3,907	9,224
Prepaid EIT		574
Other	4,743	3,837
Other current assets	$ 19,049	$ 88,869

Property, Plant and Equipment59

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, plant and equipment
Property, plant and equipment, Gross	$ 339,631	$ 345,185
Less: accumulated depreciation	(66,485)	(55,022)
Property, plant and equipment, Net	273,146	290,163
Buildings [Member]
Property, plant and equipment
Property, plant and equipment, Gross	6,898	7,320
Plant, machinery and equipment [Member]
Property, plant and equipment
Property, plant and equipment, Gross	316,087	332,885
Vehicles [Member]
Property, plant and equipment
Property, plant and equipment, Gross	1,149	1,321
Office equipment and furniture [Member]
Property, plant and equipment
Property, plant and equipment, Gross	380	314
Construction-in-progress [Member]
Property, plant and equipment
Property, plant and equipment, Gross	$ 15,117	$ 3,345

Property, Plant and Equipment60

Property, Plant and Equipment (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Depreciation expense on property, plant and equipment
Cost of sales	$ 14,435	$ 12,736
Selling, general and administrative expenses	830	929
Depreciation expense	$ 15,265	$ 13,665

Property, Plant and Equipment61

Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment (Textual)
Interest capitalized	$ 0.2	$ 1

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary of intangible assets
Licensing agreements, software and patent technology	$ 2,119	$ 1,756
Less: accumulated amortization	(1,098)	(918)
Intangibles assets, net	$ 1,021	$ 838
Minimum [Member]
Summary of intangible assets
Licensing agreements, Amortization Period	10 years	10 years
Maximum [Member]
Summary of intangible assets
Licensing agreements, Amortization Period	20 years	20 years

Intangible Assets (Details 1)

Intangible Assets (Details 1) - Amortization expense [Member] $ in Thousands	Dec. 31, 2015USD ($)
Summary of estimated amortization expense
Year ending December 31, 2016	$ 512
Year ending December 31, 2017	88
Year ending December 31, 2018	67
Year ending December 31, 2019	45
Year ending December 31, 2020	45
Thereafter	264
Estimated amortization expense	$ 1,021

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets (Textual)
Amortization expense of intangible assets	$ 0.2	$ 0.1

Land Use Rights (Details)

Land Use Rights (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Land Use Rights
Land use rights	$ 26,952	$ 28,471
Less: Accumulated amortization	(3,195)	(2,606)
Land use rights	$ 23,757	$ 25,865

Land Use Rights (Details 1)

Land Use Rights (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Summary of estimated amortization expense
Land use rights	$ 23,757	$ 25,865
Land use rights [Member]
Summary of estimated amortization expense
Year ending December 31, 2016	739
Year ending December 31, 2017	739
Year ending December 31, 2018	739
Year ending December 31, 2019	739
Year ending December 31, 2020	739
Thereafter	20,061
Land use rights	$ 23,757

Land Use Rights (Details Textua

Land Use Rights (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Land use rights (Textual)
Amortization expense related to land use rights	$ 771	$ 518

Short-Term Bank Borrowings an68

Short-Term Bank Borrowings and Long Term Debts (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Summary of short-term bank borrowings
Bank borrowings	$ 360,720	$ 567,525

Short-Term Bank Borrowings an69

Short-Term Bank Borrowings and Long Term Debts (Details 1) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Short-Term Debt [Line Items]
Short-term Borrowing	$ 360.7	$ 567.5
Carrying amount of pledged one-year deposit	130.3	276.7
Carrying amount of secured land, buildings or equipment		131.6
Shanghai Pudong Development Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	5.9	43.7
Carrying amount of pledged one-year deposit		27
Carrying amount of secured land, buildings or equipment
Bank of China [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	122.2	133.9
Carrying amount of pledged one-year deposit	19.5	48.8
Carrying amount of secured land, buildings or equipment		96.6
China Construction Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	181.8	162.2
Carrying amount of pledged one-year deposit	104.5	93.9
Carrying amount of secured land, buildings or equipment
Agriculture Bank of China [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	23.1	45.9
Carrying amount of pledged one-year deposit		22.1
Carrying amount of secured land, buildings or equipment
Ningbo Commerce Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	3	16
Carrying amount of pledged one-year deposit	3.1	11.2
Carrying amount of secured land, buildings or equipment
Bank of Communication [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	10.9	19.2
Carrying amount of pledged one-year deposit		3.5
Carrying amount of secured land, buildings or equipment
Bank of Ningbo [Member]
Short-Term Debt [Line Items]
Short-term Borrowing		22
Carrying amount of pledged one-year deposit		9.3
Carrying amount of secured land, buildings or equipment
China Minsheng Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	3.3	13.5
Carrying amount of pledged one-year deposit		5.8
Carrying amount of secured land, buildings or equipment
Bank of Huaxia [Member]
Short-Term Debt [Line Items]
Short-term Borrowing		6.8
Carrying amount of pledged one-year deposit		1.3
Carrying amount of secured land, buildings or equipment
China Merchant Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	7.7	28.4
Carrying amount of pledged one-year deposit	0.3	14.1
Carrying amount of secured land, buildings or equipment
Ping'an Bank [Member]
Short-Term Debt [Line Items]
Short-term Borrowing	2.8	55.4
Carrying amount of pledged one-year deposit	2.9	39.7
Carrying amount of secured land, buildings or equipment
The Import Export Bank of China [Member]
Short-Term Debt [Line Items]
Short-term Borrowing		20.5
Carrying amount of pledged one-year deposit
Carrying amount of secured land, buildings or equipment		$ 35

Short-Term Bank Borrowings an70

Short-Term Bank Borrowings and Long Term Debts (Details Textual) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015CNY (¥)
Short-Term Debt [Line Items]
Carrying amount of pledged one-year deposit	$ 130.3	$ 276.7
Carrying amount of secured land, buildings or equipment		131.6
Principal amount of debt	$ 15.4		¥ 100
Debt instrument, description	The debt matures at the second anniversary and carries an interest of 7.0% which is 40% higher than average interest rate of long term bank loans during that period. The long term loan is secured by 15% of Chunfeng Tao's ownership of Ningbo Keyuan. Upon the maturity of the loan, Zhouji Group has an option to elect a payment of the principal and the accrued interest or the transfer of 15% of Mr. Tao's ownership of Ningbo Keyuan.
Short-term borrowing was guaranteed by related party and third-party entities and individuals	$ 109.5	$ 105.1
Description of short term borrowings	The Group's short-term borrowing, as of December 31, 2015 and 2014, $109.5 million and $105. 1 million was guaranteed by related party and third-party entities and individuals, respectively. As of December 31, 2015 and 2014, nil and $21.5 million of the Group’s short-term borrowings was secured by the Group’s land, buildings and equipment with a carrying amount of nil and $131.6 million, respectively; and $251.2 million and $440.9 million of the Group’s short-term borrowings was pledged by one-year fixed term deposits with a carrying amount of $130.3 million and $276.7 million, respectively.
Minimum [Member]
Short-Term Debt [Line Items]
Short-term bank borrowings, interest rate	1.90%	1.00%	1.90%
Term of short-term bank borrowings	2 months	2 months
Maximum [Member]
Short-Term Debt [Line Items]
Short-term bank borrowings, interest rate	6.90%	7.50%	6.90%
Term of short-term bank borrowings	12 months	12 months
Bank Loans in RMB [Member]
Short-Term Debt [Line Items]
Short-term bank borrowings, interest rate	5.30%	6.30%	5.30%
Bank Loans in USD [Member]
Short-Term Debt [Line Items]
Short-term bank borrowings, interest rate	2.40%	3.30%	2.40%

Accrued Expenses and Other Pa71

Accrued Expenses and Other Payables (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued expenses and other payables
Purchase of property, plant and equipment	$ 12,555	$ 15,924
Accrued payroll and welfare	677	1,176
Liquidated damages	2,493	2,493
Accrued interest expense	7,476	3,705
Accrued expenses according to ongoing lawsuits	10,200	4,908
Loan from unrelated parties	1,540	8,253
Other tax payable	2,765	3,387
Deposit from customers	2,499
Other accruals and payables	2,449	1,255
Accrued expenses and other payables	$ 42,654	$ 41,101

Series B Convertible Preferre72

Series B Convertible Preferred Stock and Related Financing Agreements (Details) $ / shares in Units, ¥ in Millions, $ in Millions	Sep. 24, 2013$ / shares	Sep. 28, 2010USD ($)	Dec. 31, 2015$ / shares	Dec. 31, 2014USD ($)	Dec. 31, 2014CNY (¥)	Dec. 31, 2013$ / shares
Series B Convertible Preferred Stock and Related Financing Agreements (Textual)
Stock price	$ 0.70
Dividends
Risk free rate	0.10%
Expected term	1 year
Volatility	126.36%
Series B convertible preferred stock [Member]
Series B Convertible Preferred Stock and Related Financing Agreements (Textual)
Conversion price			$ 3.75
Liquidation preference						$ 3.75
Description of convertible preferred stock, redemption			(i) a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock dividends or distributions or a reclassification, exchange or substitution of shares provided for in the terms of the series B convertible preferred stock), (ii) merger or consolidation where the holders of the Company's outstanding voting securities prior to such merger or consolidation do not own over 50% of the outstanding voting securities of the merged or consolidated entity immediately after such merger or consolidation; or (iii) the sale of all or substantially all of the Company's properties or assets (collectively, an "Organic Change").
Description of voting rights of preferred stock			Annual dividends were determined as 6% of $3.75 for each share of the Series B convertible preferred stock.
Convertible preferred stock, conversion terms			Pursuant to the Amendments, i) the date of maturity (a/k/a. the date of mandatory conversion) of series B convertible preferred stock was extended from September 28, 2013 to September 28, 2014; ii) the term of Series C warrant was extended from three years to four years; and iii) the term of Series D warrant was extended from three years to four years.
Seeking monetary damages | $		$ 20
Final consideration of share transfer amount				$ 1.8	¥ 12
Non-operation expense				$ 0.9	¥ 6
Escrow shares agreement, description			Pursuant to which 3,400,000 shares of the Company's common stock (the "Escrow Shares") held by Delight Reward were delivered to the Escrow Agent. The Escrow Shares were to be released back to Delight Reward upon the Company's achievement of no less than 95% of a net income of $33 million for the year ended December 31, 2010 (the "Performance Threshold"). The Performance Threshold was achieved and the 3,400,000 shares were released on November 6, 2013.

Common Stock Purchase Warrant73

Common Stock Purchase Warrants (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Series A Warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	April 22 and May 18, 2010
Maximum number of shares of common stock | shares	748,704
Exercise Price	$ 4.50
Series B Warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	April 22 and May 18, 2010
Maximum number of shares of common stock | shares	748,704
Exercise Price	$ 5.25
Series C Warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	September 28, 2010
Maximum number of shares of common stock | shares	810,002
Exercise Price	$ 4.50
Series D Warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	September 28, 2010
Maximum number of shares of common stock | shares	810,002
Exercise Price	$ 5.25
Series A Private Placement [Member] | Placement agent warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	April 22 and May 18, 2010
Maximum number of shares of common stock | shares	718,755
Series A Private Placement [Member] | Placement agent warrants [Member] | Minimum [Member]
Schedule of issued warrants to purchase the Company's common stock
Exercise Price	$ 3.50
Series A Private Placement [Member] | Placement agent warrants [Member] | Maximum [Member]
Schedule of issued warrants to purchase the Company's common stock
Exercise Price	$ 5.25
Series B Private Placement [Member] | Placement agent warrants [Member]
Schedule of issued warrants to purchase the Company's common stock
Issuance dates	September 28, 2010
Maximum number of shares of common stock | shares	561,601
Series B Private Placement [Member] | Placement agent warrants [Member] | Minimum [Member]
Schedule of issued warrants to purchase the Company's common stock
Exercise Price	$ 3.75
Series B Private Placement [Member] | Placement agent warrants [Member] | Maximum [Member]
Schedule of issued warrants to purchase the Company's common stock
Exercise Price	$ 5.25

Common Stock Purchase Warrant74

Common Stock Purchase Warrants (Details Textual)	12 Months Ended
	Dec. 31, 2015
Series A Warrants [Member]
Common Stock Purchase Warrants (Textual)
Warrants expiration date	Expired in 2013.
Series B Warrants [Member]
Common Stock Purchase Warrants (Textual)
Warrants expiration date	Expired in 2013.
Placement agent warrants [Member] | Series A financing [Member]
Common Stock Purchase Warrants (Textual)
Warrants expiration date	Expired in 2013.

Share-Based Payments (Details)

Share-Based Payments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Employee stock option grants [Member]
Summary of stock option activity
Number of Options, beginning balance		1,793,000
Number of Options, Forfeited		(1,793,000)
Number of Options, ending balance
Number of Options Exercisable
Weighted average exercise price, beginning balance		$ 4.2
Weighted average exercise price, Forfeited		4.2
Weighted average exercise price, ending balance
Weighted average exercise price, Exercisable
Weighted average remaining contractual term		6 months
Weighted average remaining contractual term, Forfeited		6 months
Weighted average remaining contractual term, Exercisable	0 years	0 years
Aggregate intrinsic value, beginning balance
Aggregate intrinsic value, Forfeited
Aggregate intrinsic value, ending balance
Aggregate intrinsic value, Exercisable
Non-employee stock option grants [Member]
Summary of stock option activity
Number of Options, beginning balance		40,000
Number of Options, Forfeited		(40,000)
Number of Options, ending balance
Number of Options Exercisable
Weighted average exercise price, beginning balance		$ 4.20
Weighted average exercise price, Forfeited		4.20
Weighted average exercise price, ending balance
Weighted average exercise price, Exercisable
Weighted average remaining contractual term		6 months
Weighted average remaining contractual term, Forfeited		6 months
Weighted average remaining contractual term, Exercisable	0 years	0 years
Aggregate intrinsic value, beginning balance
Aggregate intrinsic value, Forfeited
Aggregate intrinsic value, ending balance
Aggregate intrinsic value, Exercisable

Share-Based Payments (Details T

Share-Based Payments (Details Textual) $ / shares in Units, $ in Millions	Dec. 29, 2010shares	Aug. 04, 2010USD ($)$ / sharesshares	Jul. 01, 2010USD ($)Directors$ / sharesshares	Jun. 30, 2010USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares
Share-based payments (Textual)
Fair value of committed cash payment | $					$ 0.4
2010 Equity Incentive Plan [Member]
Share-based payments (Textual)
Number of stock options granted					6,000,000
Incentive stock option, description					Exercise price of any incentive stock option shall not be less than 100% of the fair market value of a share on the date of grant. The term of each option shall be fixed by the Board or the Committee, provided that no incentive stock option shall have a term greater than 10 years.
Number of stock options, cancelled	600,000
2010 Equity Incentive Plan [Member] | Senior Management Employees [Member]
Share-based payments (Textual)
Number of stock options granted				3,000,000
Contractual term of stock option				5 years
Exercise price of stock option | $ / shares				$ 4.20
Grant date fair value of stock options | $				$ 3.3
Number of stock options vested				2,810,000
Term of vesting				3 years
Vesting, description				30% shall vest and become exercisable one year after grant date, 40% shall vest and become exercisable two years after grant date, and 30% shall vest and become exercisable three years after grant date.
Remaining stock option subject to vest and exercisable				190,000
Remaining stock option subject to vest and exercisable, description				40% shall vest and become exercisable one year after grant date and 60% shall vest and become exercisable two years after grant date.
2010 Equity Incentive Plan [Member] | Independent Directors [Member]
Share-based payments (Textual)
Number of stock options granted			80,000
Contractual term of stock option			5 years
Exercise price of stock option | $ / shares			$ 4.20
Grant date fair value of stock options | $			$ 0.1
Number of stock options vested			40,000
Number of independent directors | Directors			2
Vesting, description			Options shall vest and become exercisable one year after the grant date.
Remaining stock option subject to vest and exercisable			40,000
Remaining stock option subject to vest and exercisable, description			Options shall vest and become exercisable two years after the grant date, provided that the independent directors are re-elected for successive one year terms one year after the stock options issuance date.
2010 Equity Incentive Plan [Member] | Employees [Member]
Share-based payments (Textual)
Number of stock options granted		700,000
Contractual term of stock option		5 years
Exercise price of stock option | $ / shares		$ 4.50
Grant date fair value of stock options | $		$ 1.3
Term of vesting		3 years
Vesting, description		30% shall vest and become exercisable one year after the grant date, 40% shall vest and become exercisable two years after the grant date and 30% shall vest and become exercisable three years after the grant date.

Statutory Reserves (Details)

Statutory Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statutory Reserves (Textual)
Percentage of reserve to be allocated after tax	10.00%
Percentage of reserve out of registered capital	50.00%
Statutory reserve	$ 6,109	$ 5,773

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Sep. 17, 2012
Stock Repurchase Program (Textual)
Common stock repurchased, value	$ 306,852
Common stock repurchased, shares	298,962
Board of Directors [Member]
Stock Repurchase Program (Textual)
Authorized amount for stock repurchase program		$ 2,000,000
Common stock price per share		$ 1.50

Commitments and Contingencies (

Commitments and Contingencies (Details) $ / shares in Units, ¥ in Millions	Aug. 04, 2016USD ($)	Jul. 11, 2016CNY (¥)	Jul. 02, 2013USD ($)	Oct. 30, 2014	Jul. 11, 2016$ / shares	Jul. 11, 2016CNY (¥)	Dec. 31, 2015USD ($)	Sep. 24, 2013$ / shares
Commitments and Contingencies (Textual)
Outstanding letter of credit							$ 37,000,000
Contractual capital commitments							$ 12,800,000
Paid for civil penalty			$ 1,000,000
Other commitments, description				In connection with a motion for a temporary restraining order and preliminary injunction filed by Dragon State against the Company and Mr. Chunfeng Tao, a Consent Order was issued by the Court whereby the Company and Mr. Chunfeng Tao agree that, notwithstanding anything contained in the certificate of Designations, Preferences and Rights of the Series B Convertible Preferred Stock to the contrary, the 5,333,334 shares of Series B Preferred Stock held by Dragon State have not been, and shall not be, automatically converted into shares of Company's common stock, or any other security prior to the resolution of the above mentioned action; and the expiration of Series C and Series D warrants shall be tolled pending the resolution of the above mentioned action as well.
Common stock price per share | $ / shares								$ 0.70
Subsequent Event [Member] | Settlement Agreement [Member]
Commitments and Contingencies (Textual)
Litigation settlement, amount | ¥		¥ 12
Aggregate contingent consideration | ¥						¥ 18
Common stock price per share | $ / shares					$ 0.005
Subsequent Event [Member] | Side Agreement [Member]
Commitments and Contingencies (Textual)
Aggregate purchase price of common stock shares issued	$ 27,465.01

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Components of loss before income tax expenses (benefit) by jurisdictions:
Loss before income taxes	$ (59,280)	$ (44,078)
PRC [Member]
Components of loss before income tax expenses (benefit) by jurisdictions:
Loss before income taxes	(51,034)	(42,040)
U.S. [Member]
Components of loss before income tax expenses (benefit) by jurisdictions:
Loss before income taxes	(1,033)	(1,618)
Hong Kong and BVI [Member]
Components of loss before income tax expenses (benefit) by jurisdictions:
Loss before income taxes	$ (7,213)	$ (420)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Current income tax expense	$ 1,222	$ 420
Deferred income tax expense		2,627
Total income tax expense	$ 1,222	$ 3,047

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income tax expense reconciliation
Loss before income taxes	$ (59,280)	$ (44,078)
Computed expected income tax benefit	$ (14,820)	$ (11,019)
Computed expected income tax benefit, percentage	25.00%	25.00%
Tax loss not recognized	$ 11,920	$ 13,442
Tax loss not recognized, percentage	(20.10%)	(30.50%)
Effect of different tax rates	$ 871	$ 444
Effect of different tax rates, percentage	(1.50%)	(1.00%)
Other	$ 140	$ 102
Other, percentage	(0.20%)	(0.20%)
Permanent differences	$ 3,110	$ 78
Permanent differences, percentage	(5.20%)	(0.20%)
Actual income tax expense(benefit)	$ 1,222	$ 3,047
Actual income tax expense(benefit), percentage	2.06%	6.91%

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Net operating tax loss carried forwards from the Group's operations outside of the PRC	$ 23,057	$ 18,194
Prepaid expenses and other current assets	4,876	1,515
Accrued bonus	3	4
Bad debt provision	5,378	1,184
Total deferred income tax assets	33,314	20,897
Valuation allowance	(33,314)	(20,897)
Net deferred tax assets - current

Income Taxes (Details 4)

Income Taxes (Details 4) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Income Tax Examination [Line Items]
Expiration date	Dec. 31, 2015
U.S. [Member]
Income Tax Examination [Line Items]
Deferred tax assets	$ 6,976
Hong kong [Member]
Income Tax Examination [Line Items]
Deferred tax assets	7,611
BVI [Member]
Income Tax Examination [Line Items]
Deferred tax assets

Income Taxes (Details Textual)

Income Taxes (Details Textual)	1 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015CNY (¥)
Income Taxes (Textual)
PRC statutory income tax rate		25.00%	25.00%
PRC tax, Description		According to the prevailing PRC income tax law and its relevant regulations, non-PRC-resident enterprises are levied withholding tax at 10%, unless reduced by tax treaties or similar arrangements, on dividends from their PRC-resident investees for earnings accumulated beginning on January 1, 2008, and undistributed earnings generated prior to January 1, 2008 are exempted from such withholding tax. Further, the Group's distributions from its PRC subsidiaries are subject to U.S. federal income tax at 34%, less any applicable qualified foreign tax credits.
Net operating tax loss carried forwards from the Group's operations outside of the PRC		$ 23,057,000	$ 18,194,000
Undistributed loss		33,000,000
Undistributed earnings			9,000,000
Underpayment of taxes		$ 15,000		¥ 100,000
Minimum [Member]
Income Taxes (Textual)
Federal statutory income tax rate		15.00%
Maximum [Member]
Income Taxes (Textual)
Federal statutory income tax rate		35.00%
Guangxi Keyuan [Member]
Income Taxes (Textual)
PRC tax, Description	The local tax authorities granted Guangxi Keyuan the qualification to enjoy the Western Development Enterprise Preferential Tax Policy, which is a 15% income tax rate from the first year when Guangxi Keyuan generate revenue to year 2020. The Company expects Guangxi Keyuan to generate revenue in 2018.
Non PRC Group [Member]
Income Taxes (Textual)
Net operating tax loss carried forwards from the Group's operations outside of the PRC		$ 8,200,000	$ 7,500,000

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Basic loss per share:
Net loss	$ (60,502)	$ (47,125)	$ 4,600
Non-controlling interests	(464)
Net loss contributable to Keyuan Petrochemicals Inc. common stockholders	$ (60,038)	$ (47,125)
Weighted average common share outstanding (Denominator for basic loss per share)	57,221,050	57,304,255
Basic net loss per share:	$ (1.05)	$ (0.82)
Diluted net loss per share:	$ (1.05)	$ (0.82)

Significant Concentrations an87

Significant Concentrations and Risks (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)customer	Dec. 31, 2014USD ($)customer
Significant concentrations and risks (Textual)
Cash and pledged bank deposits in financial institutions	$ 288	$ 349
Maximum percentage of sales to individual customers of the Group's total net revenues	10.00%	10.00%
Purchase (net of VAT) from major supplier	$ 308.3	$ 609.7
Purchase from major supplier percentage	73.00%	78.00%
Purchase from largest supplier, Amount	$ 140	$ 613
Purchase from largest supplier, Percentage	57.00%	68.00%
Number of Customers | customer	3	3
Purchase of heavy oil	$ 3	$ 1,769
Sale of heavy oil	3	1,774
Trading loss of heavy oil		$ 4
Customer One [Member]
Significant concentrations and risks (Textual)
Sales to major customer, Percentage	42.00%	29.00%
Customer Two [Member]
Significant concentrations and risks (Textual)
Sales to major customer, Percentage	38.00%	26.00%
Customer Three [Member]
Significant concentrations and risks (Textual)
Sales to major customer, Percentage	18.00%	22.00%

Related Party Transactions an88

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amounts outstanding with the related parties
Purchase of transportation services	$ 1,821	$ 3,117
Amounts due from related parties	92	53
Amounts due to related parties	4,592
Account payable to related parties	$ 739	$ 839

Related Party Transactions an89

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Purchase of transportation services	$ 1,821	$ 3,117
Advance payments to non-controlling interest shareholder	4,592
Amount due from related parties	92	53
Amount due from related parties others	46	6
Ningbo Xinhe [Member]
Related Party Transaction [Line Items]
Purchase of transportation services	1,823	3,117
Mr. Tao [Member]
Related Party Transaction [Line Items]
Advance payments to non-controlling interest shareholder	4,592
Amount due from related parties	$ 46	$ 48

Related Party Transactions an90

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Transactions and amounts outstanding with certain other parties
Sales of products (d)	$ 69,746	$ 146,761
Guarantee for bank borrowings (f)	280,332	365,184
Amounts due from these parties (g)	46	6
Amount due to these parties (h)	369
Advance payments to these parties(i)	11,055
Advance received from these parties (j)	218
Accounts receivables (k)	25	3,968
Accounts payables (l)	261,524	102,650
Notes payable	334,139	190,051
Transactions with certain other parties [Member]
Transactions and amounts outstanding with certain other parties
Sales of products (d)	51,413	27,630
Purchase of raw materials (e)	277,433	635,775
Guarantee for bank borrowings (f)	310,276	422,221
Amounts due from these parties (g)	3,907	5,723
Amount due to these parties (h)		163
Advance payments to these parties(i)	4,552	7,139
Advance received from these parties (j)	4	1,657
Accounts receivables (k)		13,367
Accounts payables (l)	41,269	22,660
Notes payable	140,715	39,827
Notes receivable (n)	$ 514

Related Party Transactions an91

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parenthetical) (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Guarantees for bank loans from other certain parties
Bank loans guaranteed	$ 120,417	$ 154,641
Guarantee provided during the period	310,276	422,221
Ningbo Litong [Member]
Guarantees for bank loans from other certain parties
Bank loans guaranteed	18,634	72,881
Ningbo Lide (Member)
Guarantees for bank loans from other certain parties
Bank loans guaranteed	101,783	81,760
Guarantee provided during the period	$ 207,897	$ 269,652

Related Party Transactions an92

Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parenthetical 2) (Details 1) - USD ($) $ in Thousands	Jan. 11, 2011	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Sales of products (d)		$ 69,746	$ 146,761
Group purchased raw materials		65,713	41,312
Guarantee fee as a percentage of loan principal	0.30%
Loan guarantee fee (a)		103	307
Accounts payables		261,524	102,650
Accounts receivables		25	3,968
Advance payments to these parties		11,055
Amounts due to these parties		369
Amount due from related parties		92	53
Advances from these parties for sales		218
Guarantee provided during the period		310,276	422,221
Bank loans guaranteed		120,417	154,641
Ningbo Xinhe [Member]
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Amount owed in respect of transport services			500
Advances from these parties for sales		10
Ningbo Lide (Member)
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Sales of products (d)		25,600	10,000
Group purchased raw materials		112,000	26,700
Accounts payables			3,800
Accounts receivables			6,100
Notes payable		72,200	7,600
Advance payments to these parties		4,600	2,700
Advances from these parties for sales		7,200	1,600
Guarantee provided during the period		207,897	269,652
Bank loans guaranteed		101,783	81,760
Mr. Chunfeng Tao (''Mr. Tao'') [Member]
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Amount due from related parties		46	48
Guarantee provided during the period		354,200	375,900
Bank loans guaranteed		95,900	15,100
Ningbo Litong [Member]
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Sales of products (d)		25,900	15,100
Group purchased raw materials		131,400	63,200
Outstanding advance payment in advance respect to raw material purchase transaction
Loan guarantee fee (a)			700
Accounts payables		1,400
Accounts receivables			7,300
Notes payable		68,600	20,600
Advance payments to these parties			4,400
Amounts due to these parties			200
Amount due from related parties		200
Advances from these parties for sales		3,800	100
Huanning International Trading Co [Member]
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Sales of products (d)			2,500
Group purchased raw materials		2,800
Amount due from related parties		3,900	100
Advances from these parties for sales		100
Mercuria energy trading Pte Ltd (Mercuria) [Member]
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual)
Group purchased raw materials		31,200	545,900
Accounts payables		39,900	18,900
Notes payable			11,600
Amount due from related parties			$ 5,700

Consolidated Segment Data (Deta

Consolidated Segment Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary of selected information in segment structure presented in following tables
Sales	$ 474,360	$ 653,497
Loss from operations	(9,801)	(19,075)
Interest income	12,231	10,109
Interest expense	37,983	26,077
Depreciation	15,265	13,665
Amortization	243	148
Income tax (benefit) expense	1,222	3,047
(Deductions) additions of property, plant and equipment	(17,327)	80,227
Total assets	829,695	910,665
Petrochemical [Member]
Summary of selected information in segment structure presented in following tables
Sales	410,287	627,635
Loss from operations	(5,218)	(19,357)
Interest income	12,121	9,998
Interest expense	36,970	26,077
Depreciation	11,455	949
Amortization	243	148
Income tax (benefit) expense		3,047
(Deductions) additions of property, plant and equipment	(12,817)	70,529
Total assets	724,008	791,582
Rubber [Member]
Summary of selected information in segment structure presented in following tables
Sales	64,073	25,862
Loss from operations	(4,583)	282
Interest income	110	111
Interest expense	1,013
Depreciation	3,810	3,716
Amortization
Income tax (benefit) expense	1,222
(Deductions) additions of property, plant and equipment	(4,510)	9,698
Total assets	$ 105,687	$ 119,083

Consolidated Segment Data (De94

Consolidated Segment Data (Details Textual)	12 Months Ended
	Dec. 31, 2015Segments
Consolidated Segment Data (Textual)
Number of operating segments	2

Keyuan Petrochemicals, Inc. (95

Keyuan Petrochemicals, Inc. (Parent Company) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Balance Sheets
Cash	$ 4,800	$ 900
Other current assets	19,049	88,869
Total assets	829,695	910,665
Accounts payable	52,820	48,624
Accrued expenses and other payables	42,654	41,101
Dividends payable	2,382	2,382
Total stockholders' equity	(909)	40,491	$ 73,392
Total liabilities and stockholders' equity	829,695	910,665
Keyuan Petrochemicals, Inc. (Parent company) [Member]
Condensed Balance Sheets
Cash	5	5
Other current assets	21	21
Investment in subsidiaries	41,774	41,774
Total assets	41,800	41,800
Accounts payable	272	272
Accrued expenses and other payables	6,619	5,619
Inter-company liabilities	12,865	12,832
Dividends payable	2,382	2,382
Series B convertible preferred stock
Total liabilities and stockholders' equity	$ 41,800	$ 41,800

Keyuan Petrochemicals, Inc. (96

Keyuan Petrochemicals, Inc. (Parent Company) (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Statements of Operations
General and administrative expenses	$ 35,554	$ 11,742
Interest expense	37,983	26,077
Net loss	(60,502)	(47,125)	$ 4,600
Keyuan Petrochemicals, Inc. (Parent company) [Member]
Condensed Statements of Operations
General and administrative expenses	1,033	1,618
Interest expense
Net loss	$ 1,033	$ 1,618

Keyuan Petrochemicals, Inc. (97

Keyuan Petrochemicals, Inc. (Parent Company) (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (60,502)	$ (47,125)	$ 4,600
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	770	1,590
Decrease in other assets	(76,637)	33,769
Net cash used in operating activities	(112,456)	41,460
Cash flow from financing activities:
Net cash provided by financing activities	141,100	(14,760)
Net decrease in cash	3,894	(11,439)
Cash at beginning of period	870	12,309
Cash at end of period	4,764	870	12,309
Keyuan Petrochemicals, Inc. (Parent company) [Member]
Cash flows from operating activities:
Net loss	1,033	1,618
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense
Decrease in other assets
Decrease in accounts payable, accrued expenses and other payables	1,033	1,618
Net cash used in operating activities
Cash flow from financing activities:
Advance from inter-group company
Net cash provided by financing activities
Net decrease in cash
Cash at beginning of period	5	5
Cash at end of period	$ 5	$ 5	$ 5

Keyuan Petrochemicals, Inc. (98

Keyuan Petrochemicals, Inc. (Parent Company) (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Keyuan Petrochemicals, Inc. (Parent Company) (Textual)
Minimum percentage allocated to General Reserve under PRC	10.00%
Mandatory percentage of allocations of PAT	50.00%
Statutory reserve	$ 6.1	$ 5.8
Amount of restricted net asset	$ 265	$ 204

Amounts Due From (To) Non-Con99

Amounts Due From (To) Non-Controlling Interests (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amount Due From (To) Non Controlling Interest (Textual)
Sales of products	$ 474,360	$ 653,497
Advance payments to non-controlling interest shareholder	4,592
Accounts payables	739	839
Hengyun [Member]
Amount Due From (To) Non Controlling Interest (Textual)
Sales of products	29,516	2,775
Purchase of raw materials	138,495	10,127
Amount due to non-controlling interest shareholder		80,896
Advance payments to non-controlling interest shareholder	2,222	2,159
Accounts receivables	17,153	843
Accounts payables		4,570
Notes payable	$ 90,601

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, ¥ in Millions	Aug. 04, 2016USD ($)	Jul. 11, 2016CNY (¥)	Jul. 11, 2016$ / shares	Jul. 11, 2016CNY (¥)	Sep. 24, 2013$ / shares
Subsequent Events (Textual)
Share price | $ / shares					$ 0.70
Subsequent Events [Member]
Subsequent Events (Textual)
Aggregate purchase price | $	$ 27,465.01
Subsequent Events [Member] | Settlement Agreement [Member]
Subsequent Events (Textual)
Contingent consideration liability in RMB | ¥				¥ 18
Settlement amount | ¥		¥ 12
Share price | $ / shares			$ 0.005