Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Nov. 03, 2016 | |
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-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 63,132,726 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 11,013 | $ 4,764 |
Pledged bank deposits | 258,335 | 282,968 |
Notes receivable | 694 | 735 |
Accounts receivable, net | 19,375 | 23,398 |
Inventories | 28,888 | 55,730 |
Prepayments to suppliers, net | 121,455 | 80,077 |
Consumption tax recoverable | 54,122 | 44,377 |
Amounts due from related parties | 44 | 92 |
Amounts due from non-controlling interests | 12,088 | 19,376 |
Other current assets | 20,119 | 19,049 |
Total current assets | 526,133 | 530,566 |
Property, plant and equipment, net | 281,794 | 273,146 |
Intangible assets, net | 976 | 1,021 |
Land use rights | 23,690 | 23,757 |
Value added tax recoverable | 1,228 | 1,205 |
Total assets | 833,821 | 829,695 |
Current Liabilities: | ||
Short-term bank borrowings | 318,447 | 360,720 |
Notes payable | 368,754 | 334,139 |
Accounts payable | 53,777 | 52,820 |
Amounts due to related parties | 5,265 | 5,330 |
Amounts due to non-controlling interest | 34 | |
Advances from customers | 19,569 | 15,563 |
Accrued expenses and other payables | 48,731 | 42,654 |
Income tax payable | 1,930 | 1,596 |
Dividends payable | 2,382 | 2,382 |
Total current liabilities | 818,889 | 815,204 |
Long-term debt | 15,477 | 15,400 |
Total liabilities | 834,366 | 830,604 |
Stockholders' deficit: | ||
Common stock: Par value: $0.001; Authorized: 100,000,000 shares Issued 57,646,160; outstanding: 57,221,050 as at March 31, 2016 and December 31, 2015 | 58 | 58 |
Additional paid-in capital | 70,917 | 70,917 |
Statutory reserve | 6,114 | 6,109 |
Accumulated other comprehensive income | 6,853 | 7,098 |
Consideration receivable | (9,417) | (9,417) |
Accumulated deficit | (101,063) | (101,594) |
Treasury stock, at cost, 425,110 shares at March 31, 2016 and December 31, 2015 | (449) | (449) |
Total stockholders' deficit | (26,987) | (27,278) |
Non-controlling interests | 26,442 | 26,369 |
Total deficit | (545) | (909) |
Total liabilities and deficit | $ 833,821 | $ 829,695 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 57,646,160 |
Common stock, shares outstanding | 57,221,050 | 57,221,050 |
Treasury stock, shares | 425,110 | 425,110 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Sales | $ 86,339 | $ 58,282 |
Cost of sales | 74,084 | 78,843 |
Gross profit (loss) | 12,255 | (20,561) |
Selling expenses | 889 | 234 |
General and administration expenses | 4,030 | 4,642 |
Total operating expenses | 4,919 | 4,876 |
Income (loss) from operations | 7,336 | (25,437) |
Other income (expense): | ||
Interest income | 1,975 | 3,325 |
Interest expense | (6,400) | (8,348) |
Foreign exchange loss, net | (1,334) | (9,408) |
Other expense, net | (152) | (8,057) |
Total other expense, net | (5,911) | (22,488) |
Income (loss) before income taxes | 1,425 | (47,925) |
Income tax expense (benefit) | 996 | (68) |
Net income (loss) | 429 | (47,857) |
Net loss attributable to non-controlling interests | (107) | |
Net income (loss) attributable to Keyuan Petrochemicals Inc. common stockholders | 536 | (47,857) |
Net income (loss) | 429 | (47,857) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (245) | (479) |
Comprehensive income (loss) | 184 | (48,336) |
Comprehensive loss attributable to non-controlling interest | (107) | |
Comprehensive income (loss) attributable to Keyuan Petrochemicals Inc. common stockholders | $ 291 | $ (48,336) |
Earning (loss) per share: Attributable to common stock: | ||
-Basic | $ 0.009 | $ (0.84) |
-Diluted | $ 0.009 | $ (0.84) |
Weighted average number of shares of common stock used in calculation: | ||
-Basic | 57,221,050 | 57,221,050 |
-Diluted | 57,221,050 | 57,221,050 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 429 | $ (47,857) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 3,779 | 3,788 |
Amortization | 81 | 37 |
Bad debt expense | 12 | 2,473 |
Land use rights amortization | 184 | 194 |
Deferred income tax benefit | (153) | |
Changes in operating assets and liabilities: | ||
Notes receivable | 44 | (146) |
Accounts receivable | 4,090 | (23,958) |
Inventories | 26,845 | 30,847 |
Prepayments to suppliers | (42,375) | (6,060) |
Consumption tax refund receivable | (9,425) | 3,826 |
Other current assets | 1,975 | 80,963 |
Accounts payable | 2,183 | 18,382 |
Amounts due from (to) related parties | 13,084 | (26,189) |
Advances from customers | 3,945 | 9,766 |
Income taxes payable | 322 | (53) |
Accrued expenses and other payables | 1,135 | (83,651) |
Pledged deposit for operating activities | (389) | (22,922) |
Net cash provided by (used in) operating activities | 5,919 | (60,713) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (10,983) | (938) |
Net cash used in investing activities | (10,983) | (938) |
Cash flow from financing activities: | ||
Pledged bank deposits used for bank borrowings | 25,022 | 21,813 |
Proceeds from short-term bank borrowings | 142,086 | 292,931 |
Repayment of short-term bank borrowings | (185,718) | (282,464) |
Proceeds from bank notes | 141,536 | 108,674 |
Repayments of bank notes | (108,932) | (94,400) |
Net cash provided by financing activities | 13,994 | 46,554 |
Effect of foreign currency exchange rate changes on cash | (2,681) | 15,366 |
Net increase in cash | 6,249 | 269 |
Cash at beginning of period | 4,764 | 870 |
Cash at end of period | 11,013 | 1,139 |
Supplemental disclosure of cash flow information: | ||
Income tax paid | 681 | 53 |
Interest paid, net of capitalized interest | 7,859 | 7,092 |
Non cash investing and financing activities: | ||
Amount not yet paid for purchase of property, plant and equipment (net of VAT) | $ 147 | $ (691) |
Organization and Nature of Busi
Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans | 3 Months Ended |
Mar. 31, 2016 | |
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”). (b) Financial condition, liquidity and capital resources Despite of the Company’s continuous efforts in realignment of product profiles and the fact that the petrochemical industry in China has been stabilized since 2015, the Company reported a net income of approximately $0.4 million and a net loss of approximately $60.5 million for the three months ended March 31, 2016 and for the year ended December 31, 2015, respectively. In addition, cash flows provided by operations were approximately $5.9 million for the three months ended March 31, 2016 and cash flows used in operations were approximately $112.5 million for the year ended December 31, 2015, respectively. At March 31, 2016 and December 31, 2015, the Company had a working capital deficit of approximately $292.8 million and $284.6 million, respectively. Consequently, there is substantial doubt about the company’s ability to continue as a going concern. The Company continues to finance and support its operations primarily through short-term bank borrowings. Short-term bank borrowings and notes payable amounted to approximately $687 and $695 million at March 31, 2016 and December 31, 2015, respectively. In addition, the Group continues to benefit from favorable PRC tax policies related to consumption tax. As of March 31, 2016, the Group had consumption tax refund receivables of approximately $54.1 million which have been fully refunded to the Group as of the date of this Form 10-Q. The Company is exploring sources of additional financing, including short-term financing from its vendors 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 expansion plan - particularly the Guangxi project - to increase production capacity, 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. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | 2 BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the consolidated financial statements of the Company and its subsidiaries. All intercompany balances and transactions are eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. GAAP applicable to interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2015 and 2014, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computation as the audited consolidated financial statements for the years ended December 31, 2015 and 2014. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
INVENTORIES | 3 INVENTORIES Inventories consist of the following: March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) Raw materials $ 7,665 $ 34,116 Finished goods 17,215 18,003 Work-in-process 4,008 3,611 Total $ 28,888 $ 55,730 |
Consumption Tax Refund Receivab
Consumption Tax Refund Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Consumption Tax Refund Receivable [Abstract] | |
CONSUMPTION TAX REFUND RECEIVABLE | 4 CONSUMPTION TAX REFUND RECEIVABLE 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. Because 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. At March 31, 2016 and December 31, 2015, the Group recorded an estimated consumption tax refund receivables amounting to approximately $54.1 million and $44.4 million, respectively. The balances as of March 31, 2016 have been fully refunded to the Group as of the date of this Form 10-Q. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2016 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 5 OTHER CURRENT ASSETS Other current assets consist of the following: March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) VAT recoverable $ 11,740 $ 10,397 Deposit paid to suppliers 2,773 3,907 Others 5,606 4,745 $ 20,119 $ 19,049 Management estimates the deductible input value added tax (“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 consumption tax refund receivable (Note 4). |
Short-Term Bank Borrowings and
Short-Term Bank Borrowings and Long Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Short-Term Bank Borrowings and Long Term Debt [Abstract] | |
SHORT-TERM BANK BORROWINGS AND LONG TERM DEBT | 6 SHORT-TERM BANK BORROWINGS AND LONG TERM DEBT As of March 31, 2016 and December 31, 2015 short-term bank borrowings outstanding carried a weighted average interest rate of 4.7% and 5.3%, respectively, for bank loans in RMB; a weighted average interest rate of 2.5% and 2.4%, respectively, for bank loans in USD, maturity terms ranging from two to twelve months, and interest rates ranging from 2.7% to 6.0% and 1.9% to 6.9%, respectively. Short-term bank borrowings consist of the following: March 31, December 31, 2016 2015 SHORT-TERM BANK BORROWINGS PLEDGED BANK DEPOSITS SHORT-TERM BANK BORROWINGS PLEDGED BANK DEPOSITS ($’000) ($’000) ($’000) ($’000) (Unaudited) China Construction Bank $ 181,133 $ 111,410 $ 181,799 $ 104,500 Shanghai Pudong Development Bank 5,959 - 5,929 - Agricultural Bank of China 11,453 - 23,100 - Pingan Bank - - 2,800 2,867 Bank of Communication 10,989 - 10,934 - Bank of China 98,135 - 122,168 19,450 China Merchant Bank 7,739 - 7,700 283 Ningbo Commerce Bank 3,039 3,293 3,000 3,090 China Minsheng Bank 1 - 3,290 - Total $ 318,447 $ 114,702 $ 360,720 $ 130,190 The only long term debt of the Company is a loan to Ningbo Keyuan from Zhouji (Group) Co., Ltd (“Zhouji Group”) made on April 9, 2015 in the initial amount of RMB 100 million (approximately $15.4 million). The debt matures on the second anniversary of being made and carries an interest of 7.0%, which is approximately 40% higher than average interest rate of long-term bank loans made at that time of similar tenor. The long-term loan is secured by 15% of Mr. 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. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2016 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | 7 NOTES PAYABLE 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 $325 million and $312 million as of March 31, 2016 and December 31, 2015, respectively. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses and Other Payables [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 8 ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following: March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) Purchase of property, plant and equipment $ 12,766 $ 12,555 Accrued payroll and welfare 725 677 Liquidated damages 2,493 2,493 Deposit from customers 2,499 2,499 Loan from unrelated parties 1,548 1,540 Other tax payable 2,702 2,765 Accrued interest expense 7,771 7,476 Accrued expenses according to ongoing lawsuit 15,079 10,200 Other accruals and payables 3,148 2,449 $ 48,731 $ 42,654 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9 COMMITMENTS AND CONTINGENCIES (a) Operating commitments The Group had outstanding Letters of Credit as of March 31, 2016 of approximately $37 million. (b) Capital commitments As of March 31, 2016, the Group had contractual capital commitments of approximately $12.8 million for purchases of equipment. The capital commitments relate primarily to manufacturing equipment enhancements. (c) Litigation On October 28, 2014, Dragon State Limited (“Dragon State”), an investor in a private placement that the Company closed in September 2010, filed a complaint against, among others, Keyuan Petrochemicals, Inc. and Mr. Chunfeng Tao, seeking rescission of the securities purchase agreement in the 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”). Pursuant to the September 2010 private placement, Dragon State had purchased from the Company for an aggregate price of $20 million, 5,333,340 shares of 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”) among 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”), Mr. Chunfeng 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 approximately $1,800,000. In addition, Delight Reward and Keyuan Group agreed to pay, and Dragon State agreed to accept, a settlement of RMB 6,000,000 or approximately $900,000 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, Mr. 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
INCOME TAXES | 10 INCOME TAXES The provision for income taxes is recorded at the end of each interim period based on the Group’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. The Group’s effective tax rate for the three months ended March 31, 2016 is approximately 70%. The increased effective rate for the three months ended March 31, 2016 compared to year 2015 is primarily due to losses in non-PRC jurisdictions, the benefit of which is not expected to be realized. The Group paid income taxes of approximately $0.7 million and $0.05 million, respectively during the three months ended March 31, 2016 and 2015. |
Earning (Loss) Per Share
Earning (Loss) Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earning (Loss) Per Share [Abstract] | |
EARNING (LOSS) PER SHARE | 11 EARNING (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net earnings (loss) per share: Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Basic earning (loss) per share: Net income (loss) $ 429 $ (47,857 ) Net loss attributable to non-controlling interests (107 ) - Net income (loss) attributable to Keyuan Petrochemicals Inc. common stockholders $ 536 $ (47,857 ) Weighted average common share (Denominator for basic and diluted earning (loss) per share) 57,221,050 57,221,050 Basic net earning (loss) per share: $ 0.009 $ (0.84 ) Diluted net earning (loss) per share: $ 0.009 $ (0.84 ) 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 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 in diluted earnings (loss) per share for the three month ended March 31, 2016 and 2015, respectively, as their effect was anti-dilutive. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2016 | |
Stock Repurchase Program [Abstract] | |
STOCK REPURCHASE PROGRAM | 12 STOCK REPURCHASE PROGRAM On September 22, 2014, the Board of Directors authorized the termination of a repurchase program that was commenced on December 31, 2012 to repurchase of up to $2 million of its common stock at a price of up to $1.50 per share. The Company purchased 425,110 shares of common stock through the stock repurchase program. 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 three months ended March 31, 2016 and 2015. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | 13 FAIR VALUE MEASUREMENTS The Company did not have any assets or liabilities that were measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, 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. The fair value of pledged bank deposits and short-term bank borrowings approximate their carrying amount because of their varying interest rates and/or their short maturities. |
Significant Concentrations and
Significant Concentrations and Risks | 3 Months Ended |
Mar. 31, 2016 | |
Significant Concentrations and Risks [Abstract] | |
SIGNIFICANT CONCENTRATIONS AND RISKS | 14 SIGNIFICANT CONCENTRATIONS AND RISKS As of March 31, 2016 and December 31, 2015, the Group held cash and pledged bank deposits in financial institutions of approximately $269 million and $288 million, respectively. These were primarily held in major financial institutions located in mainland China and the Hong Kong Special Administrative Region, which management believes have high credit quality. During the three months ended March 31, 2016, no sales to individual customer exceeded 10% of the Group’s total net revenue. As of March 31, 2016, two customers accounted for 51% and 33% of accounts receivables. The Group currently buys a majority of its heavy oil and styrene, important components of its products, from three suppliers. Management believes that other suppliers could be found to provide similar products on comparable terms if it were to become necessary. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely. During the three months ended March 31, 2016 and 2015, three and two suppliers to the Group each accounted for more than 10% of total group purchase. These three suppliers accounted for approximately 17%, 10% and 10% of the total purchase for three months ended March 31, 2016. During the three months ended March 31, 2015, the two individual suppliers from whom the Group purchased more than 10% of its total purchases, accounted for approximately 58%, 23% of the total purchase. As at March 31, 2016, one customer accounted for 92% of total accounts payable. The Group commenced trading of heavy oil in April 2013, with the Group acting as an agent on behalf of a Hong Kong-based customer. For the three months ended March 31, 2016 and 2015, the trading of heavy oil consists of purchases of approximately nil and $3.0 million, respectively, and sales of approximately nil and $3.0 million, respectively, resulting in no profit or loss. The Group’s operations are carried out in the PRC. Accordingly, the Group’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, as well as by the general state of the PRC’s economy. The business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittances abroad, and rates and methods of taxation, among other things. |
Related Party Transactions and
Related Party Transactions and Relationships and Transactions With Certain Other Parties | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties [Abstract] | |
RELATED PARTY TRANSACTIONS AND RELATIONSHIPS AND TRANSACTIONS WITH CERTAIN OTHER PARTIES | 15 RELATED PARTY TRANSACTIONS AND RELATIONSHIPS AND TRANSACTIONS WITH CERTAIN OTHER PARTIES (A) Related Party Transactions The Company considers all transactions with the following parties to be related party transactions. Name of parties Relationship Mr. Chunfeng Tao (“Mr. Tao”) Majority stockholder Mr. Jicun Wang (“Mr. Wang”) Principal stockholder Mr. Peijun Chen (“Mr. Chen”) Principal stockholder Ms. Sumei Chen Member of the Company’s Board of Ms. Yushui Huang (“Ms. Huang”) Vice President of Administration, Mr. Dingan Zhang Chief Financial Officer of Ningbo Keyuan from October 2015 to April 2016 Ningbo Pacific Ocean Shipping Co., Ltd 100% ownership by Mr. Wang Ningbo Hengfa Metal Product Co., Ltd (“Ningbo Hengfa”, former name “Ningbo Tenglong”) 100% ownership by Mr. Chen Ningbo Xinhe Logistic Co., Ltd 10% ownership by Ms. Huang Related party transactions and amounts outstanding with the related parties as of March 31, 2016 and December 31, 2015, and for the three months ended March 31, 2016 and 2015, are summarized as follows: Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Purchase of transportation services (a) $ 879 $ 158 As of March 31, As of December 31, ($’000) ($’000) (Unaudited) Amounts due from related parties (c) $ 44 $ 92 Amounts due to related parties (c) $ 5,113 $ 4,592 Accounts payables to related parties $ 152 $ 739 (a) The Group purchased transportation services of approximately $0.8 million and $0.2 million from Ningbo Xinhe during the three months ended March 31, 2016 and 2015, respectively. (b) Guarantees for Bank Loans Guarantee provided by Mr. Tao amounted $139.3 million and $138.6 million as of March 31, 2016 and December 31, 2015. Bank loans guarantee provided by Mr. Tao amounted $91.8 million and $95.9 million as of March 31, 2016 and December 31, 2015. (c) Amount due from these parties consist of the following. As of As of December 31, ($’000) ($’000) (Unaudited) Mr. Tao $ 44 $ 46 Others - 46 Amount due to these parties consist of the following. As of March 31, As of December 31, ($’000) ($’000) (Unaudited) Mr. Tao $ 4,592 $ 4,592 Ningbo Xinhe 521 - Total $ 5,113 $ 4,592 (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 Former 12.75% nominee shareholder of Ningbo 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 A related party until September 2011 Ningbo Lide Investment Co., Ltd. A related party until September 2011 Ningbo Kunde Petrochemical Co, Ltd. A related party until September 2011 Transactions and amounts outstanding with these parties for the three months ended March 31, 2016 and 2015 and as of March 31, 2016 and December 31, 2015 are summarized as follows: Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Sales of products (d) $ - $ 1,936 Purchase of raw materials (e) $ 56,551 $ 29,157 As at March 31, 2016 As at December 31, 2015 ($’000) ($’000) (Unaudited) Guarantee for bank borrowings (f) $ 311,681 $ 310,276 Amounts due from these parties (g) $ 2,773 $ 3,907 Advance payments to these parties (h) $ 30,460 $ 4,552 Advance payments from these parties (i) $ 1,193 $ 4 Accounts receivables (j) $ 763 $ - Accounts payables (k) $ 41,771 $ 41,269 Notes payable (l) $ 155,871 $ 140,715 Notes receivable (m) $ - $ 514 (d) The Group sold finished products of approximately nil and $1.5 million to Ningbo Litong during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group sold finished products of approximately nil and $0.4 million to Ningbo Lide during the three months ended March 31, 2016 and March 31, 2015, respectively. (e) The Group purchased raw materials of approximately $21.8 million and $9.7 million from Ningbo Litong during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately $29.2 million and $0.02 million from Ningbo Lide during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately $5.5 million and $16.6 million from Mercuria during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately nil and $2.8 million from Huaning during the three months ended March 31, 2016 and March 31, 2015, respectively. (f) Guarantees for Bank Loans Guarantee provided as of March 31, December 31, ($’000) ($’000) (Unaudited) Ningbo Litong $ 102,742 $ 102,379 Ningbo Lide 208,940 207,897 Total $ 311,682 $ 310,276 Bank loans Guaranteed as of March 31, December 31, ($’000) ($’000) (Unaudited) Ningbo Litong $ 18,727 $ 18,634 Ningbo Lide 97,737 101,783 Total $ 116,464 $ 120,417 Between in January 2011 and January 1, 2014, these Company paid loan guarantee fees of approximately 0.3% per quarter of the loan principal guaranteed for these guarantees. In January 1, 2014, Ningbo Litong, Ningbo Lide and Mr. Chunfeng Tao agreed to stop charging loan guarantee fees to the Group. No guarantee fees were paid for the three months ended March 31, 2016 and 2015. (g) At March 31, 2016 and December 31, 2015, the amounts due from these parties consist of amounts due from Huaning of $1.2 million and $3.9 million, respectively, and amounts due from Mercuria of $1.6 million and nil, respectively. (h) At March 31, 2016 and December 31, 2015, advances payments to these parties consist of payments to Ningbo Litong of $18.8 million and nil, respectively, and Ningbo Lide of $11.7 million and $4.6 million, respectively. (i) At March 31, 2016 and December 31, 2015, advances received from Huaning of $4,000 and $4,000, respectively, and amounts received from Ningbo Lide of $1.2 million and nil, respectively. (j) At March 31, 2016 and December 31, 2015, account receivables from these parties consist of account receivables from Ningbo Litong of $0.1 million and nil, respectively, and account receivables from Ningbo Lide of $0.6 million and nil, respectively. (k) At March 31, 2016 and December 31, 2015 accounts payables to these parties consist of payables to Ningbo Litong of nil and $1.4 million, respectively, and payables to Mecuria of $41.8 million and $39.9 million, respectively. (l) At March 31, 2016 and December 31, 2015, notes payables to these parties consist of notes payables to Ningbo Litong of $76.8 million and $68.6 million, respectively, and payables to Ningbo Lide of $79.1 million and $72.2 million, respectively. (m) At December 31, 2015 and 2014 notes receivable from these parties consist of notes receivable from Ningbo Litong of nil and $0.5 million, respectively, and notes receivable from Ningbo Lide of nil and $0.02 million, respectively. (C) Relationships and transactions with the entity that has non-controlling interests in Company’s subsidiaries: The Group has the following relationships and transactions with the entity who has non-controlling interests in the Company or its subsidiaries: Name of party Relationship Ningbo Hengyun Energy Technology Co., Ltd (Ningbo Hengyun) Non-controlling shareholder of Guangxi Keyuan since 2015 The transactions and amounts outstanding with this party as of March 31, 2016 and December 31, 2015, and for the three months ended March 31, 2016 and 2015 are summarized as follows: Three Months ended March 31, 2016 2015 ($’000) ($’000) (unaudited) (unaudited) Sales of products $ 273 $ 557 Purchase of raw materials $ 42,920 $ 22,789 As at March 31, 2016 As at December 31, ($’000) ($’000) (unaudited) Advance received from non-controlling interest shareholder $ 34 $ - Advance payments to non-controlling interest shareholder $ 11,766 $ 2,222 Accounts receivables $ 323 $ 17,153 Notes receivables $ 87,876 $ 90,601 |
Consolidated Segment Data
Consolidated Segment Data | 3 Months Ended |
Mar. 31, 2016 | |
Consolidated Segment Data [Abstract] | |
CONSOLIDATED SEGMENT DATA | 16 CONSOLIDATED SEGMENT DATA Segment information is based on how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects management’s 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 butyl ether, styrene, etc. (b) Rubber Segment: Manufacturing and sales of various rubber products. Segment information is as follows: Three Months Ended March 31 2016 2015 Petrochemical Rubber Total Petrochemical Rubber Total ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Sales $ 64,959 $ 21,380 $ 86,339 $ 44,307 $ 13,975 $ 58,282 Income (loss) from operations $ 10,434 $ (3,098 ) $ 7,336 $ (27,950 ) $ 2,513 $ (25,437 ) As of March 31, 2016 As of December 31, 2015 Petrochemical Rubber Total Petrochemical Rubber Total ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) (Unaudited) (Unaudited) (Unaudited) Total assets $ 724,623 $ 109,198 $ 833,821 $ 724,008 $ 105,687 $ 829,695 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17 SUBSEQUENT EVENTS On July 11, 2016, the Company and certain affiliates of the Company entered into the Settlement Agreement with Dragon State and others described in Note 9(c) above, 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 approximately $2.7 million. On August 4, 2016, the Company entered into the Side Agreement with Delight Reward described in Note 9(c) above in connection with the execution of the Settlement Agreement and the payment subsequently made thereunder by the Company to Dragon State. For more details of the Settlement Agreement and the Side Agreement, please refer to Note 9(c) above. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
Schedule of Inventories | March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) Raw materials $ 7,665 $ 34,116 Finished goods 17,215 18,003 Work-in-process 4,008 3,611 Total $ 28,888 $ 55,730 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Current Assets [Abstract] | |
Schedule of other current assets | March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) VAT recoverable $ 11,740 $ 10,397 Deposit paid to suppliers 2,773 3,907 Others 5,606 4,745 $ 20,119 $ 19,049 |
Short-Term Bank Borrowings an25
Short-Term Bank Borrowings and Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Short-Term Bank Borrowings and Long Term Debt [Abstract] | |
Summary of short-term bank borrowings | March 31, December 31, 2016 2015 SHORT-TERM BANK BORROWINGS PLEDGED BANK DEPOSITS SHORT-TERM BANK BORROWINGS PLEDGED BANK DEPOSITS ($’000) ($’000) ($’000) ($’000) (Unaudited) China Construction Bank $ 181,133 $ 111,410 $ 181,799 $ 104,500 Shanghai Pudong Development Bank 5,959 - 5,929 - Agricultural Bank of China 11,453 - 23,100 - Pingan Bank - - 2,800 2,867 Bank of Communication 10,989 - 10,934 - Bank of China 98,135 - 122,168 19,450 China Merchant Bank 7,739 - 7,700 283 Ningbo Commerce Bank 3,039 3,293 3,000 3,090 China Minsheng Bank 1 - 3,290 - Total $ 318,447 $ 114,702 $ 360,720 $ 130,190 |
Accrued Expenses and Other Pa26
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of accrued expenses and other payables | March 31, December 31, 2016 2015 ($’000) ($’000) (Unaudited) Purchase of property, plant and equipment $ 12,766 $ 12,555 Accrued payroll and welfare 725 677 Liquidated damages 2,493 2,493 Deposit from customers 2,499 2,499 Loan from unrelated parties 1,548 1,540 Other tax payable 2,702 2,765 Accrued interest expense 7,771 7,476 Accrued expenses according to ongoing lawsuit 15,079 10,200 Other accruals and payables 3,148 2,449 $ 48,731 $ 42,654 |
Earning (Loss) Per Share (Table
Earning (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earning (Loss) Per Share [Abstract] | |
Schedule of computation of basic net earnings (loss) per share | Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Basic earning (loss) per share: Net income (loss) $ 429 $ (47,857 ) Net loss attributable to non-controlling interests (107 ) - Net income (loss) attributable to Keyuan Petrochemicals Inc. common stockholders $ 536 $ (47,857 ) Weighted average common share (Denominator for basic and diluted earning (loss) per share) 57,221,050 57,221,050 Basic net earning (loss) per share: $ 0.009 $ (0.84 ) Diluted net earning (loss) per share: $ 0.009 $ (0.84 ) |
Related Party Transactions an28
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Transactions with related party [Member] | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Purchase of transportation services (a) $ 879 $ 158 As of March 31, As of December 31, ($’000) ($’000) (Unaudited) Amounts due from related parties (c) $ 44 $ 92 Amounts due to related parties (c) $ 5,113 $ 4,592 Accounts payables to related parties $ 152 $ 739 (a) The Group purchased transportation services of approximately $0.8 million and $0.2 million from Ningbo Xinhe during the three months ended March 31, 2016 and 2015, respectively. (b) Guarantees for Bank Loans Guarantee provided by Mr. Tao amounted $139.3 million and $138.6 million as of March 31, 2016 and December 31, 2015. Bank loans guarantee provided by Mr. Tao amounted $91.8 million and $95.9 million as of March 31, 2016 and December 31, 2015. (c) Amount due from these parties consist of the following. As of As of December 31, ($’000) ($’000) (Unaudited) Mr. Tao $ 44 $ 46 Others - 46 Amount due to these parties consist of the following. As of March 31, As of December 31, ($’000) ($’000) (Unaudited) Mr. Tao $ 4,592 $ 4,592 Ningbo Xinhe 521 - Total $ 5,113 $ 4,592 |
Transactions with certain other parties [Member] | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Three months ended 2016 2015 ($’000) ($’000) (Unaudited) (Unaudited) Sales of products (d) $ - $ 1,936 Purchase of raw materials (e) $ 56,551 $ 29,157 As at March 31, 2016 As at December 31, 2015 ($’000) ($’000) (Unaudited) Guarantee for bank borrowings (f) $ 311,681 $ 310,276 Amounts due from these parties (g) $ 2,773 $ 3,907 Advance payments to these parties (h) $ 30,460 $ 4,552 Advance payments from these parties (i) $ 1,193 $ 4 Accounts receivables (j) $ 763 $ - Accounts payables (k) $ 41,771 $ 41,269 Notes payable (l) $ 155,871 $ 140,715 Notes receivable (m) $ - $ 514 (d) The Group sold finished products of approximately nil and $1.5 million to Ningbo Litong during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group sold finished products of approximately nil and $0.4 million to Ningbo Lide during the three months ended March 31, 2016 and March 31, 2015, respectively. (e) The Group purchased raw materials of approximately $21.8 million and $9.7 million from Ningbo Litong during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately $29.2 million and $0.02 million from Ningbo Lide during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately $5.5 million and $16.6 million from Mercuria during the three months ended March 31, 2016 and March 31, 2015, respectively. The Group purchased raw materials of approximately nil and $2.8 million from Huaning during the three months ended March 31, 2016 and March 31, 2015, respectively. (f) Guarantees for Bank Loans Guarantee provided as of March 31, December 31, ($’000) ($’000) (Unaudited) Ningbo Litong $ 102,742 $ 102,379 Ningbo Lide 208,940 207,897 Total $ 311,682 $ 310,276 Bank loans Guaranteed as of March 31, December 31, ($’000) ($’000) (Unaudited) Ningbo Litong $ 18,727 $ 18,634 Ningbo Lide 97,737 101,783 Total $ 116,464 $ 120,417 Between in January 2011 and January 1, 2014, these Company paid loan guarantee fees of approximately 0.3% per quarter of the loan principal guaranteed for these guarantees. In January 1, 2014, Ningbo Litong, Ningbo Lide and Mr. Chunfeng Tao agreed to stop charging loan guarantee fees to the Group. No guarantee fees were paid for the three months ended March 31, 2016 and 2015. (g) At March 31, 2016 and December 31, 2015, the amounts due from these parties consist of amounts due from Huaning of $1.2 million and $3.9 million, respectively, and amounts due from Mercuria of $1.6 million and nil, respectively. (h) At March 31, 2016 and December 31, 2015, advances payments to these parties consist of payments to Ningbo Litong of $18.8 million and nil, respectively, and Ningbo Lide of $11.7 million and $4.6 million, respectively. (i) At March 31, 2016 and December 31, 2015, advances received from Huaning of $4,000 and $4,000, respectively, and amounts received from Ningbo Lide of $1.2 million and nil, respectively. (j) At March 31, 2016 and December 31, 2015, account receivables from these parties consist of account receivables from Ningbo Litong of $0.1 million and nil, respectively, and account receivables from Ningbo Lide of $0.6 million and nil, respectively. (k) At March 31, 2016 and December 31, 2015 accounts payables to these parties consist of payables to Ningbo Litong of nil and $1.4 million, respectively, and payables to Mecuria of $41.8 million and $39.9 million, respectively. (l) At March 31, 2016 and December 31, 2015, notes payables to these parties consist of notes payables to Ningbo Litong of $76.8 million and $68.6 million, respectively, and payables to Ningbo Lide of $79.1 million and $72.2 million, respectively. (m) At December 31, 2015 and 2014 notes receivable from these parties consist of notes receivable from Ningbo Litong of nil and $0.5 million, respectively, and notes receivable from Ningbo Lide of nil and $0.02 million, respectively. |
Transactions with non-controlling interests Company's subsidiaries [Member] | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Three Months ended March 31, 2016 2015 ($’000) ($’000) (unaudited) (unaudited) Sales of products $ 273 $ 557 Purchase of raw materials $ 42,920 $ 22,789 As at March 31, 2016 As at December 31, ($’000) ($’000) (unaudited) Advance received from non-controlling interest shareholder $ 34 $ - Advance payments to non-controlling interest shareholder $ 11,766 $ 2,222 Accounts receivables $ 323 $ 17,153 Notes receivables $ 87,876 $ 90,601 |
Consolidated Segment Data (Tabl
Consolidated Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Consolidated Segment Data [Abstract] | |
Summary of segment information | Three Months Ended March 31 2016 2015 Petrochemical Rubber Total Petrochemical Rubber Total ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Sales $ 64,959 $ 21,380 $ 86,339 $ 44,307 $ 13,975 $ 58,282 Income (loss) from operations $ 10,434 $ (3,098 ) $ 7,336 $ (27,950 ) $ 2,513 $ (25,437 ) As of March 31, 2016 As of December 31, 2015 Petrochemical Rubber Total Petrochemical Rubber Total ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) (Unaudited) (Unaudited) (Unaudited) Total assets $ 724,623 $ 109,198 $ 833,821 $ 724,008 $ 105,687 $ 829,695 |
Organization and Nature of Bu30
Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Organization and Nature of Business, Recent Events, and Going Concern and Management's Plans (Textual) | |||
Net profit | $ 429 | $ (47,857) | |
Net loss | 536 | (47,857) | $ 60,500 |
Net cash used in operating activities | 5,919 | $ (60,713) | 112,500 |
Working capital deficit | 292,800 | 284,600 | |
Short-term bank borrowings and notes payable | 687,000 | 695,000 | |
Consumption tax recoverable | $ 54,122 | $ 44,377 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Components of inventories | ||
Raw materials | $ 7,665 | $ 34,116 |
Finished goods | 17,215 | 18,003 |
Work-in-process | 4,008 | 3,611 |
Total | $ 28,888 | $ 55,730 |
Consumption Tax Refund Receiv32
Consumption Tax Refund Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consumption Tax Refund Receivable (Textual) | ||
Consumption tax refund receivables | $ 54,122 | $ 44,377 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Components of other current assets | ||
VAT recoverable | $ 11,740 | $ 10,397 |
Deposit paid to suppliers | 2,773 | 3,907 |
Others | 5,606 | 4,745 |
Other current assets | $ 20,119 | $ 19,049 |
Short-Term Bank Borrowings an34
Short-Term Bank Borrowings and Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | $ 318,447 | $ 360,720 |
Pledged bank deposits | 114,702 | 130,190 |
China Construction Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 181,133 | 181,799 |
Pledged bank deposits | 111,410 | 104,500 |
Shanghai Pudong Development Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 5,959 | 5,929 |
Pledged bank deposits | ||
Agricultural Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 11,453 | 23,100 |
Pledged bank deposits | ||
Pingan Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 2,800 | |
Pledged bank deposits | 2,867 | |
Bank of Communication [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 10,989 | 10,934 |
Pledged bank deposits | ||
Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 98,135 | 122,168 |
Pledged bank deposits | 19,450 | |
China Merchant Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 7,739 | 7,700 |
Pledged bank deposits | 283 | |
Ningbo Commerce Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 3,039 | 3,000 |
Pledged bank deposits | 3,293 | 3,090 |
China Minsheng Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank borrowings | 1 | 3,290 |
Pledged bank deposits |
Short-Term Bank Borrowings an35
Short-Term Bank Borrowings and Long Term Debt (Details Textual) ¥ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Apr. 09, 2015USD ($) | Apr. 09, 2015CNY (¥) | |
Short-Term Debt [Line Items] | ||||
Principal amount of debt | $ 15.4 | ¥ 100 | ||
Debt instrument, description | The debt matures on the second anniversary of being made and carries an interest of 7.0%, which is approximately 40% higher than average interest rate of long-term bank loans made at that time of similar tenor. The long-term loan is secured by 15% of Mr. 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. | |||
Minimum [Member] | ||||
Short-Term Debt [Line Items] | ||||
Short-term bank borrowings, interest rate | 2.70% | 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 | 6.00% | 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 | 4.70% | 5.30% | ||
Bank Loans in USD [Member] | ||||
Short-Term Debt [Line Items] | ||||
Short-term bank borrowings, interest rate | 2.50% | 2.40% |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Notes Payable [Abstract] | ||
Notes payable | $ 325 | $ 312 |
Accrued Expenses and Other Pa37
Accrued Expenses and Other Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accrued expenses and other payables | ||
Purchase of property, plant and equipment | $ 12,766 | $ 12,555 |
Accrued payroll and welfare | 725 | 677 |
Liquidated damages | 2,493 | 2,493 |
Deposit from customers | 2,499 | 2,499 |
Loan from unrelated parties | 1,548 | 1,540 |
Other tax payable | 2,702 | 2,765 |
Accrued interest expense | 7,771 | 7,476 |
Accrued expenses according to ongoing lawsuit | 15,079 | 10,200 |
Other accruals and payables | 3,148 | 2,449 |
Accrued expenses and other payables | $ 48,731 | $ 42,654 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 10, 2016shares | Aug. 04, 2016USD ($)$ / shares | Oct. 28, 2014USD ($)$ / sharesshares | Jul. 11, 2016USD ($) | Jul. 11, 2016CNY (¥) | Mar. 31, 2016USD ($) |
Commitments and Contingencies (Textual) | ||||||
Outstanding letter of credit | $ 37,000,000 | |||||
Contractual capital commitments | $ 12,800,000 | |||||
Litigation settlement, amount | $ 20,000,000 | |||||
Securities purchase agreement in private placement and return | $ 20,000,000 | |||||
Series C Warrants [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate purchase of common stock shares issued | shares | 800,001 | |||||
Common stock price per share | $ / shares | $ 4.50 | |||||
Series D Warrants [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate purchase of common stock shares issued | shares | 800,001 | |||||
Common stock price per share | $ / shares | $ 5.25 | |||||
Series B Preferred Stock [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate purchase price of common stock shares issued | $ 20,000,000 | |||||
Aggregate purchase of common stock shares issued | shares | 5,333,340 | |||||
Subsequent Event [Member] | Settlement Agreement [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate contingent consideration | $ 1,800,000 | ¥ 12,000,000 | ||||
Subsequent Event [Member] | Settlement Agreement One [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate contingent consideration | $ 900,000 | ¥ 6,000,000 | ||||
Subsequent Event [Member] | Side Agreement [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Common stock price per share | $ / shares | $ 0.005 | |||||
Subsequent Event [Member] | Side Agreement [Member] | Series B Preferred Stock [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Aggregate purchase price of common stock shares issued | $ 27,465.01 | |||||
Converted shares | shares | 5,493,001 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes (Textual) | ||
Effective income tax rate | 70.00% | |
Income taxes paid | $ 700 | $ 50 |
Earning (Loss) Per Share (Detai
Earning (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Basic earning (loss) per share: | |||
Net income (loss) | $ 429 | $ (47,857) | |
Net loss attributable to non-controlling interests | (107) | ||
Net income (loss) attributable to Keyuan Petrochemicals Inc. common stockholders | $ 536 | $ (47,857) | $ 60,500 |
Weighted average common share (Denominator for basic and diluted earning (loss) per share) | 57,221,050 | 57,221,050 | |
Basic net earning (loss) per share: | $ 0.009 | $ (0.84) | |
Diluted net earning (loss) per share: | $ 0.009 | $ (0.84) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - Board of Directors [Member] $ / shares in Units, $ in Millions | 1 Months Ended |
Sep. 22, 2014USD ($)$ / sharesshares | |
Stock Repurchase Program (Textual) | |
Authorized amount for stock repurchase program | $ | $ 2 |
Common stock price per share | $ / shares | $ 1.50 |
Common stock repurchased, shares | shares | 425,110 |
Significant Concentrations an42
Significant Concentrations and Risks (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)customersuppliers | Mar. 31, 2015USD ($)suppliers | Dec. 31, 2015USD ($) | |
Significant Concentrations and Risks (Textual) | |||
Cash and pledged bank deposits in financial institutions | $ | $ 269 | $ 288 | |
Maximum percentage of sales to individual customers of the Group's total net revenues | 10.00% | ||
Number of customers | 2 | ||
Number of suppliers | suppliers | 3 | ||
Purchase of heavy oil | $ | $ 3 | ||
Sale of heavy oil | $ | $ 3 | ||
Customers One [Member] | Accounts Payable [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Number of customers | 1 | ||
Sales to major customer, Percentage | 92.00% | ||
Customers One [Member] | Accounts Receivable [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Number of customers | 2 | ||
Sales to major customer, Percentage | 51.00% | ||
Customers Two [Member] | Accounts Receivable [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Number of customers | 2 | ||
Sales to major customer, Percentage | 33.00% | ||
One Individual Suppliers [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Purchase from supplier, percentage | 17.00% | 58.00% | |
Number of suppliers | suppliers | 2 | ||
Two Individual Suppliers [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Purchase from major supplier percentage | 10.00% | ||
Purchase from supplier, percentage | 10.00% | 23.00% | |
Number of suppliers | suppliers | 2 | ||
Three Individual Suppliers [Member] | |||
Significant Concentrations and Risks (Textual) | |||
Purchase from major supplier percentage | 10.00% | ||
Purchase from supplier, percentage | 10.00% |
Related Party Transactions an43
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Amounts outstanding with the related parties | |||
Purchase of transportation services (a) | $ 879 | $ 158 | |
Amounts due from related parties (c) | 44 | $ 92 | |
Amounts due to related parties (c) | 5,113 | 4,592 | |
Account payable to related parties | $ 152 | $ 739 |
Related Party Transactions an44
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Purchase of transportation services | $ 879 | $ 158 | |
Amount due from related parties | 44 | $ 92 | |
Amounts due to related parties | 5,113 | 4,592 | |
Mr. Tao [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties | 44 | 46 | |
Amounts due to related parties | 4,592 | 4,592 | |
Ningbo Xinhe [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | 521 | ||
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties | $ 46 |
Related Party Transactions an45
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parentheticals Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Guarantee provided during the period | $ 311,682 | $ 310,276 | |
Bank loans guaranteed | 116,464 | 120,417 | |
Ningbo Xinhe [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of transportation services | 800 | $ 200 | |
Mr. Tao [Member] | |||
Related Party Transaction [Line Items] | |||
Guarantee provided during the period | 139,300 | 138,600 | |
Bank loans guaranteed | $ 91,800 | $ 95,900 |
Related Party Transactions an46
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Transactions and amounts outstanding with certain other parties | |||
Notes payable (l) | $ 368,754 | $ 334,139 | |
Transactions with certain other parties [Member] | |||
Transactions and amounts outstanding with certain other parties | |||
Sales of products (d) | $ 1,936 | ||
Purchase of raw materials (e) | 56,551 | $ 29,157 | |
Guarantee for bank borrowings (f) | 311,681 | 310,276 | |
Amounts due from these parties (g) | 2,773 | 3,907 | |
Advance payments to these parties (h) | 30,460 | 4,552 | |
Advance payments from these parties (i) | 1,193 | 4 | |
Accounts receivables (j) | 763 | ||
Accounts payables (k) | 41,771 | 41,269 | |
Notes payable (l) | 155,871 | 140,715 | |
Notes receivable (m) | $ 514 |
Related Party Transactions an47
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parenthetical) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Guarantees for bank loans from other certain parties | ||
Guarantee provided during the period | $ 311,682 | $ 310,276 |
Bank loans guaranteed | 116,464 | 120,417 |
Ningbo Litong [Member] | ||
Guarantees for bank loans from other certain parties | ||
Guarantee provided during the period | 102,742 | 102,379 |
Bank loans guaranteed | 18,727 | 18,634 |
Ningbo Lide (Member) | ||
Guarantees for bank loans from other certain parties | ||
Guarantee provided during the period | 208,940 | 207,897 |
Bank loans guaranteed | $ 97,737 | $ 101,783 |
Related Party Transactions an48
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Parentheticals Textual) (Details 1) - USD ($) | 1 Months Ended | 3 Months Ended | 36 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |||||
Amount due from related parties | $ 92,000 | $ 44,000 | |||
Guarantee fee as a percentage of loan principal | 0.30% | ||||
Ningbo Lide (Member) | |||||
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |||||
Sales of products (d) | $ 400,000 | ||||
Advance payments to these parties | 4,600,000 | 11,700,000 | |||
Purchase of raw material | 29,200,000 | 20,000 | |||
Advances from related parties | 1,200,000 | ||||
Accounts receivables | 600,000 | ||||
Notes payable | 72,200,000 | 79,100,000 | |||
Notes receivable, related parties | $ 20,000 | ||||
Ningbo Litong [Member] | |||||
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |||||
Sales of products (d) | 1,500,000 | ||||
Advance payments to these parties | 18,800,000 | ||||
Purchase of raw material | 21,800,000 | 9,700,000 | |||
Accounts receivables | 100,000 | ||||
Accounts payables | 1,400,000 | ||||
Notes payable | 68,600,000 | 76,800,000 | |||
Notes receivable, related parties | $ 500,000 | ||||
Huaning International Trading Co., Ltd ("Huaning") [Member] | |||||
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |||||
Purchase of raw material | 2,800,000 | ||||
Amount due from related parties | 3,900,000 | 1,200,000 | |||
Advances from related parties | 4,000 | 4,000 | |||
Mercuria Energy Trading Pte Ltd. ("Mercuria") [Member] | |||||
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |||||
Purchase of raw material | 5,500,000 | $ 16,600,000 | |||
Amount due from related parties | 1,600,000 | ||||
Accounts payables | $ 39,900,000 | $ 41,800,000 |
Related Party Transactions an49
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details 2) - Transactions with persons that have non-controlling interests [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Sales of products | $ 273 | $ 557 | |
Purchase of raw materials | 42,920 | $ 22,789 | |
Advance received from non-controlling interest shareholder | 34 | ||
Advance payments to non-controlling interest shareholder | 2,222 | 11,766 | |
Accounts receivables | 17,153 | 323 | |
Notes receivables | $ 90,601 | $ 87,876 |
Related Party Transactions an50
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Details Textual) | Mar. 31, 2016 |
Ningbo Litong [Member] | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |
Ownership % | 12.75% |
Ningbo Pacific [Member] | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |
Ownership % | 100.00% |
Ningbo Tenglong [Member] | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |
Ownership % | 100.00% |
Ningbo Xinhe [Member] | |
Related Party Transactions and Relationships and Transactions With Certain Other Parties (Textual) | |
Ownership % | 10.00% |
Consolidated Segment Data (Deta
Consolidated Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Summary of segment information | |||
Sales | $ 86,339 | $ 58,282 | |
Income (loss) from operations | 7,336 | (25,437) | |
Total assets | 833,821 | $ 829,695 | |
Petrochemical [Member] | |||
Summary of segment information | |||
Sales | 64,959 | 44,307 | |
Income (loss) from operations | 10,434 | (27,950) | |
Total assets | 724,623 | 724,008 | |
Rubber [Member] | |||
Summary of segment information | |||
Sales | 21,380 | 13,975 | |
Income (loss) from operations | (3,098) | $ 2,513 | |
Total assets | $ 109,198 | $ 105,687 |
Consolidated Segment Data (De52
Consolidated Segment Data (Details Textual) | 3 Months Ended |
Mar. 31, 2016Segments | |
Consolidated Segment Data (Textual) | |
Number of operating segments | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Jul. 11, 2016 - Subsequent Events [Member] - Settlement Agreement [Member] | USD ($) | CNY (¥) |
Subsequent Events (Textual) | ||
Aggregate consideration of settlement agreement | $ 1,800,000 | ¥ 12,000,000 |
Delight Reward [Member] | ||
Subsequent Events (Textual) | ||
Aggregate consideration of settlement agreement | $ 2,700,000 | ¥ 18,000,000 |