Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Entity Registrant Name | China XD Plastics Co Ltd | ||
Entity Central Index Key | 1,353,970 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Units Outstanding | 49,511,541 | ||
Entity Public Float | $ 56,694,725 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 168,086,445 | $ 119,928,485 |
Restricted cash | 103,489,402 | 50,852,327 |
Time deposits | 184,806,112 | 237,626,806 |
Accounts receivable, net of allowance for doubtful accounts | 410,049,559 | 234,542,739 |
Amounts due from a related party | 229,624 | 244,836 |
Inventories | 280,939,008 | 294,665,195 |
Prepaid expenses and other current assets | 125,310,309 | 15,675,848 |
Total current assets | 1,272,910,459 | 953,536,236 |
Property, plant and equipment, net | 806,363,692 | 571,746,507 |
Land use rights, net | 22,536,397 | 24,506,837 |
Long-term prepayments to equipment and construction suppliers | 14,167,702 | 183,226,006 |
Other non-current assets | 10,521,949 | 18,966,622 |
Total assets | 2,126,500,199 | 1,751,982,208 |
Current liabilities: | ||
Short-term bank loans, including current portion of long-term bank loans | 444,757,476 | 284,339,089 |
Bills payable | 148,392,677 | 33,522,287 |
Accounts payable | 320,013,040 | 257,417,000 |
Amounts due to a related party | 11,548 | 8,439 |
Income taxes payable | 897,625 | 6,881,946 |
Accrued expenses and other current liabilities | 119,339,366 | 140,988,712 |
Total current liabilities | 1,033,411,732 | 723,157,473 |
Long-term bank loans, excluding current portion | 249,520,615 | 107,481,709 |
Notes payable | 145,634,996 | |
Deferred income | 69,311,102 | 62,039,050 |
Other non-current liabilities | 42,420,619 | 38,046,917 |
Total liabilities | 1,394,664,068 | 1,076,360,145 |
Redeemable Series D convertible preferred stock (redemption amount of US$212,212,300 and US$184,461,800 as of December 31, 2016 and 2015, respectively) | 97,576,465 | 97,576,465 |
Stockholders' equity: | ||
Series B preferred stock | 100 | 100 |
Common stock, US$0.0001 par value, 500,000,000 shares authorized, 49,532,541 shares and 49,344,284 shares issued, 49,511,541 shares and 49,323,284 shares outstanding as of December 31, 2016 and 2015, respectively | 4,952 | 4,933 |
Treasury stock, 21,000 shares at cost | (92,694) | (92,694) |
Additional paid-in capital | 82,606,404 | 81,919,932 |
Retained earnings | 617,168,735 | 515,555,985 |
Accumulated other comprehensive loss | (65,427,831) | (19,342,658) |
Total stockholders' equity | 634,259,666 | 578,045,598 |
Commitments and contingencies | ||
Total liabilities, redeemable convertible preferred stocks and stockholders' equity | $ 2,126,500,199 | $ 1,751,982,208 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 49,532,541 | 49,344,284 |
Common stock, shares outstanding | 49,511,541 | 49,323,284 |
Treasury shares, shares | 21,000 | 21,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Revenues | $ 1,201,678,898 | $ 999,192,894 | $ 1,110,685,692 |
Cost of revenues | (954,723,617) | (817,811,445) | (888,227,868) |
Gross profit | 246,955,281 | 181,381,449 | 222,457,824 |
Selling expenses | (1,356,843) | (1,458,658) | (728,232) |
General and administrative expenses | (29,952,304) | (23,816,148) | (20,564,820) |
Research and development expenses | (47,989,665) | (21,061,345) | (29,434,680) |
Total operating expenses | (79,298,812) | (46,336,151) | (50,727,732) |
Operating income | 167,656,469 | 135,045,298 | 171,730,092 |
Interest income | 5,847,274 | 8,221,532 | 10,984,980 |
Interest expense | (41,370,432) | (42,704,097) | (41,518,878) |
Foreign currency exchange gains (losses) | 1,951,732 | (2,237,541) | (1,938,807) |
Gains (losses) on foreign currency forward contracts | 653,569 | (1,067,162) | |
Loss on change in fair value of warrants liability | (1,871,074) | ||
Loss on debt extinguishment | (18,963,834) | ||
Government grant | 3,914,360 | 2,991,493 | 2,723,495 |
Total non-operating expenses, net | (48,620,900) | (33,075,044) | (32,687,446) |
Income before income taxes | 119,035,569 | 101,970,254 | 139,042,646 |
Income tax expense | (17,422,819) | (18,237,975) | (18,266,277) |
Net income | $ 101,612,750 | $ 83,732,279 | $ 120,776,369 |
Earnings per common stock: | |||
Basic and diluted | $ 1.54 | $ 1.27 | $ 1.85 |
Net Income | $ 101,612,750 | $ 83,732,279 | $ 120,776,369 |
Other comprehensive loss | |||
Foreign currency translation adjustment, net of nil income taxes | (46,085,173) | (32,118,459) | (12,268,113) |
Comprehensive income | $ 55,527,577 | $ 51,613,820 | $ 108,508,256 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Series B Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2013 | $ 100 | $ 4,789 | $ (92,694) | $ 76,341,659 | $ 311,047,337 | $ 25,043,914 | $ 412,345,105 |
Balance, shares at Dec. 31, 2013 | 1,000,000 | 47,875,133 | |||||
Net income | 120,776,369 | 120,776,369 | |||||
Other comprehensive income - Foreign currency translation adjustment, net of nil income taxes | (12,268,113) | (12,268,113) | |||||
Stock based compensation | 1,003,040 | 1,003,040 | |||||
Exercise of Series A investor warrants | $ 60 | 3,531,155 | 3,531,215 | ||||
Exercise of Series A investor warrants, shares | 602,458 | ||||||
Vesting of unvested shares | $ 67 | (67) | |||||
Vesting of unvested shares, shares | 674,205 | ||||||
Balance at Dec. 31, 2014 | $ 100 | $ 4,916 | (92,694) | 80,875,787 | 431,823,706 | 12,775,801 | 525,387,616 |
Balance, shares at Dec. 31, 2014 | 1,000,000 | 49,151,796 | |||||
Net income | 83,732,279 | 83,732,279 | |||||
Other comprehensive income - Foreign currency translation adjustment, net of nil income taxes | (32,118,459) | (32,118,459) | |||||
Stock based compensation | 1,044,162 | 1,044,162 | |||||
Vesting of unvested shares | $ 17 | $ (17) | |||||
Vesting of unvested shares, shares | 171,488 | ||||||
Balance at Dec. 31, 2015 | $ 100 | $ 4,933 | $ (92,694) | $ 81,919,932 | $ 515,555,985 | $ (19,342,658) | $ 578,045,598 |
Balance, shares at Dec. 31, 2015 | 1,000,000 | 49,323,284 | |||||
Net income | 101,612,750 | 101,612,750 | |||||
Other comprehensive income - Foreign currency translation adjustment, net of nil income taxes | (46,085,173) | (46,085,173) | |||||
Stock based compensation | 686,491 | 686,491 | |||||
Vesting of unvested shares | $ 19 | $ (19) | |||||
Vesting of unvested shares, shares | 188,257 | ||||||
Balance at Dec. 31, 2016 | $ 100 | $ 4,952 | $ (92,694) | $ 82,606,404 | $ 617,168,735 | $ (65,427,831) | $ 634,259,666 |
Balance, shares at Dec. 31, 2016 | 1,000,000 | 49,511,541 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 101,612,750 | $ 83,732,279 | $ 120,776,369 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net reversal for doubtful accounts | (69,281) | (35,849) | |
Depreciation and amortization | 34,244,842 | 27,540,212 | 22,916,893 |
Stock-based compensation | 686,491 | 1,044,162 | 1,003,040 |
Loss on change in fair value of warrants liability | 1,871,074 | ||
Amortization of discount and issuance cost of the Notes | 2,040,608 | 1,086,010 | 898,634 |
Loss on change in fair value of forward contract | 2,435 | ||
Foreign currency exchange losses (gains) | (2,965,949) | 2,720,131 | 2,051,596 |
Losses on disposals of property, plant and equipment | 259,104 | 9,036 | 10,292 |
Deferred income tax benefit | (2,292,830) | (2,380,236) | (2,018,757) |
Loss on debt extinguishment | 18,963,834 | ||
Restricted cash | (27,269,199) | 4,011,349 | (6,427,562) |
Accounts receivable | (190,860,210) | (40,614,289) | 72,318,976 |
Amounts due from a related party | (35,937) | ||
Inventories | (3,764,167) | (58,103,919) | (109,198,972) |
Prepaid expenses and other current assets | 21,222,125 | (4,542,796) | (3,719,794) |
Other non-current assets | 811,456 | (371,872) | |
Bills payable | 122,226,675 | (8,119,365) | 18,538,133 |
Accounts payable | 82,085,904 | 116,133,982 | 32,823,457 |
Amounts due to a related party | 3,792 | 8,167 | |
Income taxes payable | (5,807,300) | 3,889,710 | (8,996,712) |
Accrued expenses and other current liabilities | (75,664,932) | 86,963,823 | 5,935,116 |
Deferred income | (304,465) | 3,371,249 | |
Other non-current liabilities | 9,255,439 | 11,098,323 | |
Net cash provided by operating activities | 84,483,968 | 227,370,738 | 148,748,369 |
Cash flows from investing activities: | |||
Purchase of time deposits | (475,315,245) | (474,254,312) | (626,994,741) |
Proceeds from maturity of time deposits | 515,088,058 | 463,771,799 | 663,216,581 |
Purchases of and deposits for property, plant and equipment | (210,840,098) | (267,427,681) | (334,092,742) |
Purchase of land use rights | (13,931,804) | (1,460,754) | |
Government grant related to the construction of Sichuan plant | 22,478,569 | 11,499,000 | |
Net cash used in investing activities | (148,588,716) | (280,342,998) | (299,331,656) |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 687,164,318 | 504,218,741 | 797,615,642 |
Repayment of bank borrowings | (537,809,334) | (339,528,477) | (831,932,534) |
Redemption of notes payable | (165,366,000) | ||
Proceeds from Syndicate loan facility | 180,000,000 | ||
Proceeds from Senior Notes Payable | 148,396,175 | ||
Payment of issuance costs of the Notes | (4,718,452) | ||
Proceeds from exercise of Series A investor warrants | 596,740 | ||
Proceeds from early exercise of options | 121,725 | ||
Release of restricted cash as collateral for bank borrowings | 31,375,326 | 10,022,398 | |
Placement of restricted cash as collateral for bank borrowings | (66,757,459) | (33,077,094) | (20,612,868) |
Payments of issuance cost of bank borrowings | (6,770,000) | ||
Net cash provided by financing activities | 121,836,851 | 131,734,895 | 99,367,101 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (9,574,143) | (4,290,762) | 1,126,894 |
Net increase (decrease) in cash and cash equivalents | 48,157,960 | 74,471,873 | (50,089,292) |
Cash and cash equivalents at beginning of year | 119,928,485 | 45,456,612 | 95,545,904 |
Cash and cash equivalents at end of year | 168,086,445 | 119,928,485 | 45,456,612 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of US$2,562,026, US$ 231,356 and US$ 113,317 capitalized for the years ended December 31, 2016, 2015 and 2014, respectively | 45,782,010 | 40,136,978 | 33,537,952 |
Income taxes paid | 19,521,472 | 8,982,167 | 29,288,894 |
Non-cash investing and financing activities: | |||
Government grant related to construction in the form of repayment of bank loans on behalf of the Company by the government (note 13) | 38,118,231 | ||
Government grant related to the construction of Sichuan plant in the form of restricted cash (note 13) | 11,117,817 | ||
Accrual for purchase of equipment | 94,031,275 | 41,251,663 | |
Accrual for issuance cost of the Notes | $ 202,712 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Interest paid, capitalized amount | $ 2,562,026 | $ 231,356 | $ 113,317 |
Description of business and sig
Description of business and significant concentrations and risks | 12 Months Ended |
Dec. 31, 2016 | |
Description of business and significant concentrations and risks [Abstract] | |
Description of business and significant concentrations and risks | Note 1 – Description of business and significant concentrations and risks China XD Plastics Company Limited ("China XD") is a holding company that is incorporated in Nevada of the United States of America. China XD and its subsidiaries (collectively referred to hereinafter as the "Company"), is primarily engaged in the research and development, production and sales of modified plastics products. The plastics products, which are manufactured by the Company, are primarily for use in the fabrication of automobile parts and components and secondarily for applications in high-speed railway, airplanes and ships and consist of the following major products categories: Polypropylene ("PP"), Acrylonitrile Butadiene Styrene ("ABS"), Polyamid6 ("PA6"), Polyamid66 ("PA66"), Polyformaldehyde ("POM"), Polyphenylene Oxide ("PPO"), Plastic Alloy, Polyphenylene Sulfide ("PPS"), Poly Imide ("PI"), Polylactide Acid ("PLA") and Poly Ether Ether Ketone ("PEEK"). The Company's operations are primarily conducted through its subsidiaries in the People's Republic of China ("PRC") and Dubai, United Arab Emirates ("UAE"). The Company's other subsidiaries in the US, the British Virgin Islands ("BVI") and Hong Kong Special Administrative Region ("SAR"), do not have significant operations. Sales concentration The Company sells its products primarily through approved distributors in the PRC. To a lesser extent, the Company also sells its products to an overseas customer in the Republic of Korea (the "ROK"). The Company's sales are highly concentrated. Sales to distributors and the end customer in the ROK, which individually exceeded 10% of the Company's revenues, for the years ended December 31, 2016, 2015 and 2014, are as follows: (in millions, except percentage) Years Ended December 31, 2016 2015 2014 US$ % US$ % US$ % Distributor A, located in PRC 179.6 14.9 % 192.0 19.2 % 176.6 15.9 % Distributor B, located in PRC 149.4 12.4 % 155.3 15.5 % 136.4 12.3 % Distributor C, located in PRC 127.0 10.6 % 127.3 12.7 % 138.5 12.5 % Distributor D, located in PRC 114.5 9.5 % 106.5 10.7 % 98.0 8.8 % Distributor E, located in PRC 108.9 9.1 % 81.8 8.2 % 139.8 12.6 % Distributor F, located in PRC 55.9 4.7 % 112.1 11.2 % 134.0 12.1 % Direct Customer G, located in the ROK 110.2 9.2 % 71.6 7.2 % 140.1 12.6 % Total 845.5 70.4 % 846.6 84.7 % 963.4 86.7 % The Company expects revenues from these distributors and end customers to continue to represent a substantial portion of its revenue in the future. Any factor adversely affecting the automobile industry in the PRC, electronic application industry in the ROK or the business operations of these customers will have a material effect on the Company's business, financial position and results of operations. Purchase concentration of raw materials and equipment The principal raw materials used for the Company's production of modified plastics products are plastic resins, such as polypropylene, ABS and nylon. The Company purchases substantially all of its raw materials through a limited number of distributors. Raw material purchases from these distributors, which individually exceeded 10% of the Company's total raw material purchases, accounted for approximately 67.3% (five distributors), 80.0% (seven distributors) and 88.3% (eight distributors), of the Company's total raw material purchases for the years ended December 31, 2016, 2015 and 2014, respectively. Management believes that other suppliers could provide similar raw materials on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect the Company's business, financial position and results of operations. The Company purchased equipment from two equipment distributors, which accounted for 91.0%, 99.8% and 99.6% of the Company's total equipment purchases for the years ended December 31, 2016, 2015 and 2014, respectively. Management believes that other suppliers could provide similar equipment on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which could adversely affect the Company's business, financial position and results of operations. The majority owner of one of the major equipment distributors that supplied approximately nil, 84.8% and 1.9% of the Company's total equipment purchases, is also the majority owner of a major raw material supplier that supplied approximately nil, nil, and 0.4% of the Company's total raw material purchases for the years ended December 31, 2016, 2015 and 2014, respectively. In addition, the majority owner of the equipment distributor is also the majority owner of sales Distributor F presented above. Cash concentration Cash and cash equivalents, restricted cash, time deposits and other non-current assets mentioned below maintained at banks consist of the following: December 31, 2016 December 31, 2015 US$ US$ RMB denominated bank deposits with: Financial Institutions in the PRC 464,427,328 417,430,412 Financial Institutions in Hong Kong Special Administrative Region ("Hong Kong SAR") 7,946 13,778 Financial Institution in Dubai, United Arab Emirates ("UAE") - 3,023 U.S. dollar denominated bank deposits with: Financial Institution in the U.S. 20,192 226,010 Financial Institutions in the PRC 18,025 17,109 Financial Institution in Hong Kong SAR 1,629,199 63,854 Financial Institution in Macau Special Administrative Region ("Macau SAR") 1,810 37,120 Financial Institution in Dubai, UAE 139,201 7,474,960 Euro denominated bank deposits with: Financial institution in Dubai, UAE - 3,011 HK dollar denominated bank deposits with: Financial institution in Hong Kong SAR 148 336 Dirham denominated bank deposits with: Financial institution in Dubai, UAE 53,647 37,278 The bank deposits with financial institutions in the PRC are insured by the government authority up to RMB500,000. The bank deposits with financial institutions in the Hong Kong SAR are insured by the government authority up to HK$500,000. The bank deposits with financial institutions in the Macau SAR are insured by the government authority up to MOP$500,000. The bank deposits with financial institutions in the Dubai, UAE are not insured by the government authority. Total bank deposits amounted to $1,207,996 and $1,493,509 are insured as of December 31, 2016 and December 31, 2015, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC, Hong Kong SAR, Macau SAR and Dubai, UAE with acceptable credit rating |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 – Summary of significant accounting policies (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). (b) Consolidation The accompanying consolidated financial statements include the financial statements of China XD and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. (c) Use of Estimates The preparation of consolidated financial statements in accordance 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 recoverability of the carrying amounts of property, plant and equipment, the realizability of inventories, the useful lives of property, plant and equipment, the collectability of accounts receivable, the fair values of stock-based compensation awards and the accruals for tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. (d) Foreign Currency The Company's reporting currency is the U.S. dollar (US$). The functional currency of China XD Plastics and its subsidiaries in the United States, BVI, Hong Kong and Dubai, UAE is the US$. The functional currency of China XD's subsidiaries in the PRC is Renminbi (RMB). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive income. Assets and liabilities of subsidiaries with functional currencies other than US$ are translated into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated into US$ at average rates prevailing during the reporting period. The differences resulting from such translation are recorded as a separate component of accumulated other comprehensive loss within stockholders' equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People's Bank of China or other institutions authorized to buy and sell foreign exchange. (e) Cash and cash equivalents, time deposits and restricted cash Cash and cash equivalents consists of cash on hand, cash in bank and interest-bearing certificates of deposit with an initial term of three months or less when purchased. Time deposits represent certificates of deposit with initial terms of six or twelve months when purchased. As of December 31, 2016 and 2015, the Company's time deposits bear a weighted average interest rate of 1.3% and 2.6% per annum, respectively. Cash deposits in bank that are restricted as to withdrawal or usage for up to 12 months are reported as restricted cash in the consolidated balance sheets and excluded from cash and cash equivalents in the consolidated statements of cash flows. Cash deposits of US$9,917,832 and US$16,907,470 as of December 31, 2016 and 2015 that are restricted for period beyond 12 months from the balance sheet date are included in other non-current assets in the consolidated balance sheets and also excluded from cash and cash equivalents in the consolidated statements of cash flows. Short-term bank deposits that are pledged as collateral for bills payable relating to purchases of raw materials are reported as restricted cash and amounted to US$33,673,057 and US$8,069,475 as of December 31, 2016 and 2015, respectively. Upon maturity and repayment of the bills payable, which is generally within 6 months, the cash becomes available for use by the Company. The cash will be available for use by the Company 90 days from the issuance of the letter of credit. The cash flows from the pledged bank deposits, which relate to purchases of raw materials, are reported within cash flows from operating activities in the consolidated statements of cash flows. Short-term bank deposits that are pledged as collateral for short-term and long-term bank borrowings are reported as restricted cash and amounted to US$69,816,345 and US$32,010,452 as of December 31, 2016 and 2015, respectively. Long-term bank deposits that are pledged as collateral for issuance of letter of guarantee are reported as other non-current assets and amounted to US$9,917,832 and US$16,907,470 as of December 31, 2016 and 2015, respectively. The cash flows from such bank deposits are reported within cash flows from financing activities in the consolidated statements of cash flows. (f) Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. In establishing the required allowance, management considers historical losses, the amount of accounts receivables in dispute, the accounts receivables aging and the customers' payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. (g) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Work-in-progress and finish goods comprise direct materials (including purchasing, receiving and inspection costs), direct labor and an allocation of related manufacturing overhead based on normal operating capacity. (h) Long-lived Assets Property, plant and equipment Property, plant and equipment are initially recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property, plant and equipment are as follows: Estimated Useful Life Workshops and buildings 39 years Machinery, equipment and furniture 5-10 years Motor vehicles 5 years An appropriate allocation of depreciation expense of property, plant and equipment attributable to manufacturing activities based on normal capacity is capitalized as part of the cost of inventory, and expensed in cost of revenues when the inventory is sold. Costs incurred in the construction of property, plant and equipment, including an allocation of interest expense incurred, are capitalized and transferred into their respective asset category when the assets are ready for their intended use, at which time depreciation commences. Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. Land Use Rights A land use right in the PRC represents an exclusive right to occupy, use and develop a piece of land during the contractual term of the land use right. The cost of a land use right is usually paid in one lump sum at the date the right is granted. The prepayment usually covers the entire period of the land use right. The lump sum advance payment is capitalized and recorded as land use right and then charged to expense on a straight-line basis over the period of the right, which is normally 50 years. Amortization expense of land use rights was US$468,007, US$411,178 and US$259,310 for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in general and administrative expenses. (i) Impairment of Long-lived Assets Long-lived assets, such as property, plant and equipment, and land use rights, are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. (j) Derivative Financial Instruments The Company recognizes all derivative instruments as either assets or liabilities at their respective fair values. Changes in the fair value of derivative instruments not designated for hedge accounting are recognized in earnings. (k) Revenue Recognition The Company sells its products primarily to approved distributors. Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery of the products has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. Products sales For sales in PRC, acceptance of delivery of the products by the distributors is evidenced by goods receipt notes signed by the distributors' customers (or end users). The distributors accept the products at the time they are delivered to the distributors' customers (or end customers). Delivery acceptance is evidenced by signed goods receipt notes. The Company has no remaining obligations after the distributors' acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the distributors, the risks and rewards of ownership of the products is transferred to the distributor upon the signing of the goods receipt notes and the distributor has no rights to return the products (other than for defective products). For sales to ROK, delivery of the products occurs at the point in time the product is delivered to the named port of shipment, which is when the risks and rewards of ownership are transferred to the customer. For the years ended December 31, 2016, 2015 and 2014, sales returns were minimal. The selling price, which is specified in the sales contracts or purchase orders, is fixed. Under the terms of the sales contract, upon the sale of the products to the distributors and the signing of the good receipts notes, the Company has the legal enforceable right to receive full payment of the sales price. The distributors' obligation to pay the Company is not dependent on the distributors selling the products or collecting cash from their customers (or end customers). The Company's sales are net of value added tax ("VAT") and business tax collected on behalf of tax authorities in respect of product sales. VAT and business tax collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. (l) Cost of revenues Cost of revenues represents costs of raw materials (including purchasing, receiving and inspection costs), packaging materials, labor, utilities, depreciation and amortization of manufacturing facilities and warehouses, handling costs, outbound freight and inventory write-down. Depreciation and amortization of manufacturing facilities and warehouses attributable to manufacturing activities is capitalized as part of the cost of inventory, and expensed in costs of revenues when the inventory is sold. (m) Selling, general and administrative expenses Selling expenses represents primarily costs of payroll, benefits, commissions for sales representatives and advertising expenses. General and administrative expenses represents primarily payroll and benefits costs for administrative employees, rent and operating costs of office premises, depreciation and amortization of office facilities, and other administrative expenses. (n) Research and Development Expense Research and development costs are expensed as incurred. (o) Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Government grants for the purpose of giving immediate financial support to the Company with no future related costs are recognized as other income in the Company's consolidated statements of comprehensive income. Government grants related to the acquisition of assets are recorded as deferred income on the consolidated balance sheets when the grants become receivable, and recognized as other income in the consolidated statements of comprehensive income on a straight-line basis over the estimated useful lives of those assets. (p) 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 tax operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates or tax laws on deferred income tax assets and liabilities is recognized in the consolidated statements of comprehensive income in the period the change in tax rates or tax laws is enacted. 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. The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. 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 Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense, and general and administration expenses, respectively in the consolidated statements of comprehensive income. (q) Bills Payable Bills payable represent bills issued by financial institutions to the Company's raw material suppliers. The Company's suppliers receive payments from the financial institutions upon maturity of the bills and the Company is obliged to repay the face value of the bills to the financial institutions. (r) Employee Benefit Plans Pursuant to relevant PRC regulations, the Company is 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 rate of approximately 40% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income when the related service is provided. For the years ended December 31, 2016, 2015 and 2014, the costs of the Company's contributions to the defined contribution plans amounted to US$3,878,202, US$1,788,552, and US$1,555,471, respectively. For the years ended December 31, 2016, 2015 and 2014, 70%, 77% and 78% of costs of employee benefits were recorded in general and administration expenses, respectively, with the remaining portion of costs of employee benefits in selling expenses, research and development expenses and cost of revenues each year. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. (s) Stock Based Compensation The Company measures the cost 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 cost over the period during which the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect any expected forfeitures prior to vesting. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. (t) Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, product and environmental liability, and non-income tax matters. 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. (u) Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income attributable to common stockholders by the weighted average number of common stock outstanding during the year using the two-class method. Under the two-class method, net income attributable to common stockholders is allocated between common stock and other participating securities based on participating rights in undistributed earnings. Nonvested shares and redeemable Series D convertible preferred stock are participating securities since the holders of these securities participate in dividends on the same basis as common stockholders. Diluted EPS is calculated by dividing net income attributable to common stockholders as adjusted for the effect of dilutive common stock equivalent, if any, by the weighted average number of common stock and dilutive common stock equivalent outstanding during the year. Potential dilutive securities are not included in the calculation of diluted earnings per share if the impact is anti-dilutive. (v) Segment reporting The Company uses the management approach in determining reportable operating segments. The management approach consider the internal reporting used by the Company's chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company's reportable operating segments. Management has determined that the Company has one operating segment, which is the modified plastics segment. (w) Fair Value Measurements The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company 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: - Level 2 Inputs - Level 3 Inputs 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. - The fair value of restricted cash and time deposits as of December 31, 2016 and 2015 are categorized as Level 2 measurement. - The fair value of foreign currency forward contracts as of December 31, 2014 is categorized as Level 3 measurement. The Company did not have any financial assets and liabilities or nonfinancial assets and liabilities that are measured and recognized at fair value on a recurring or nonrecurring basis as of December 31, 2016 and 2015. Management used the following methods and assumptions to estimate the fair values of financial instruments at the balance sheet dates: - Short-term financial instruments, including cash and cash equivalents, restricted cash, time deposits, accounts receivable, amounts due from a related party, short-term bank loans, bills payable, accounts payable, amounts due to a related party and accrued expenses and other current liabilities- carrying amounts approximate fair values because of the short maturity of these instruments. - Long-term bank loans-fair value is based on the amount of future cash flows associated with each loan discounted at the Company's current borrowing rate for similar debt instruments of comparable terms. The carrying value of the long-term bank loans approximate their fair values as the long-term bank loans carry interest rates which approximate rates currently offered by the Company's banks for similar debt instruments of comparable maturities. - Derivative liabilities on foreign currency forward contracts- fair values are determined using a discount cash flow model, which discounts the difference between the forward contract exchange rate from the quoted curve and the contract rate multiplied by the notional amounts. It considers the following significant inputs: risk-free rate and foreign exchange rate. (x) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company plans to complete its evaluation by the third quarter of 2017, including an assessment of the new expanded disclosure requirements and a final determination of the transition method we will use to adopt the new standard. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 is effective for public companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. This standard will be effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. Adoption of this new standard is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addressed and provided guidance for each of eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-15 on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard required that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for public companies for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts receivable | Note 3 – Accounts receivable Accounts receivable consists of the following: December 31, 2016 2015 US$ US$ Accounts receivable 410,087,666 234,583,370 Allowance for doubtful accounts (38,107 ) (40,631 ) Accounts receivable, net 410,049,559 234,542,739 As of December 31, 2016 and 2015, the accounts receivable balances also include notes receivable in the amount of US$374,296 US$2,048,186, respectively. As of December 31, 2016 and 2015, US$63,301,966 and US$54,664,219 respectively of accounts receivable are pledged for the short-term bank loans. The following table provides an analysis of the aging of accounts receivable as of December 31, 2016 and 2015: December 31, 2016 December 31, 2015 US$ US$ Aging: – current 373,108,359 234,396,244 – 1-3 months past due 36,941,200 146,495 – 4-6 months past due - - – 7-12 months past due - - – greater than one year past due 38,107 40,631 Total accounts receivable 410,087,666 234,583,370 The movements of the allowance for doubtful accounts are as follows: Year ended December 31, 2016 2015 US$ US$ Balance at the beginning of the year (40,631 ) (109,912 ) Reversal of bad debt allowance - 69,281 Effect of foreign currency exchange rate changes 2,524 - Balance at the end of the year (38,107 ) (40,631 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Note 4 – Inventories Inventories consist of the following: December 31, 2016 2015 US$ US$ Raw materials 270,605,823 287,995,933 Work in progress 157,953 164,034 Finished goods 10,175,232 6,505,228 Total inventories 280,939,008 294,665,195 There were no write down of inventories during the years ended December 31, 2016, 2015 and 2014. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid expenses and other current assets | Note 5 – Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: December 31, 2016 2015 US$ US$ Receivables from Hailezi (i) 88,286,651 - Receivables from Jiamu (ii) 20,628,987 - Value added taxes receivables (iii) 4,814,920 698,286 Advances to suppliers 3,365,930 68,354 Receivables due from a customer in the ROK - 9,471,222 Interest receivable (iv) 3,231,763 3,306,974 Others (v) 4,982,058 2,131,012 Total prepaid expenses and other current assets 125,310,309 15,675,848 (i) In September 2016, the Company's two subsidiaries, HLJ Xinda Group and Sichuan Xinda each entered into equipment purchase contracts with Harbin Hailezi Science and Technology Co., Ltd. ("Hailezi") to purchase production equipment, testing equipment and storage facility. Pursuant to the contracts with Hailezi, HLJ Xinda Group and Sichuan Xinda have prepaid RMB349.1 million (equivalent to US$50.3 million) and RMB263.4 million (equivalent to US$38.0 million) as of December 31, 2016, respectively, which was recognized in investing activities in the statements of cash flow. In November, 2016, the three parties agreed to terminate the contracts and Hailezi agreed to refund all the prepayment. As of March 13, 2017, Hailezi has refunded to HLJ Xinda Group and Sichuan Xinda RMB347.1 million (equivalent to US$50.0 million) and RMB257.4 million (equivalent to US$37.1 million), respectively. (ii) Sichuan Xinda prepaid RMB143.1 million (equivalent to US$20.6 million) to purchase equipment from Harbin Jiamu Import and Export Co., Ltd. in November 2016, which was recognized in operating activities in the statements of cash flow . As Harbin Jiamu Import and Export Co., Ltd. had cancelled its registration and transferred its business to Harbin Jiamu Science and Technology Co.,Ltd., Harbin Jiamu Import and Export Co., Ltd. agreed to refund the prepayment. As of February 14, 2017, Harbin Jiamu Import and Export Co., Ltd. has refunded all the prepayment. The majority owner of Hailezi is also the majority owner of Harbin Jiamu Import and Export Co., Ltd and Harbin Jiamu Science (iii) Value added taxes receivables mainly represent the input taxes on purchasing equipment by Sichuan Xinda, which are to be net off with output taxes. Value added taxes receivables was recognized in operating activities in consolidated statements of cash flows. (iv) Interest receivable mainly represents interest income accrued from time deposits and restricted cash. (v) Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Note 6 – Property, plant and equipment, net Property, plant and equipment consist of the following: December 31, 2016 2015 US$ US$ Machinery, equipment and furniture 391,149,907 258,173,175 Motor vehicles 2,640,477 2,009,440 Workshops and buildings 119,503,091 76,924,199 Construction in progress 409,257,584 323,955,531 Total property, plant and equipment 922,551,059 661,062,345 Less: accumulated depreciation (116,187,367 ) (89,315,838 ) Property, plant and equipment, net 806,363,692 571,746,507 The Company capitalized US$2,562,026, US$231,356, US$113,317 of interest costs as a component of the cost of construction in progress for the years ended December 31, 2016, 2015 and 2014 respectively. Depreciation expense on property, plant and equipment was allocated to the following expense items: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Cost of revenues 28,245,742 21,980,993 19,407,668 General and administrative expenses 1,808,284 1,531,389 1,155,419 Research and development expenses 3,720,126 3,615,758 2,094,496 Selling expenses 2,683 894 Total depreciation expense 33,776,835 27,129,034 22,657,583 |
Prepayments to equipment and co
Prepayments to equipment and construction suppliers | 12 Months Ended |
Dec. 31, 2016 | |
Prepayments to equipment and construction suppliers [Abstract] | |
Prepayments to equipment and construction suppliers | Note 7 – Prepayments to equipment and construction suppliers December 31, 2016 December 31, 2015 US$ US$ Samim Group FZE (i) 5,308,737 - Beijin Construction (ii) 4,324,636 - Sports City (iii) 2,859,952 Sichuan Construction 907,024 Peaceful (iv) - 170,009,200 Jiamu (v) - 11,712,843 Others (vi) 767,353 1,503,963 Total Prepayments to equipment and construction suppliers 14,167,702 183,226,006 (i) On September 21, 2016, Samim Group FZE pertaining approximately 22,324 square meters property in JAFZA in Dubai, UAE with constructed building including a warehouse, office and service block for a total consideration of AED55.3 million (equivalent to US$15.0 million). As of December 31, 2016, the Company has prepaid AED19.5 million (equivalent to US$5.3 million), which was recognized in investing activities in the statements of cash flow. (ii) On November 15, 2016, Sichuan Xinda entered into decoration contract with Sichuan Beijin Construction Engineering Company Limited ("Beijin Construction") to perform indoor and outdoor decoration work for a consideration of RMB237.6 million (equivalent to US$34.3 million). Pursuant to the contracts with Beijin Construction, Sichuan Xinda have prepaid RMB30.0 million (equivalent to US$4.3 million) as of December 31, 2016 ), which was recognized in investing activities in the statements of cash flow. (iii) In September, 2016, Dubai Xinda entered into apartments purchase contracts with Dubai Sports City LLC ("Sports City") for a total consideration of AED14.0 million (equivalent to US$3.8 million). The prepayment to Sports City in the amount of AED10.6 million (equivalent to US$2.9 million) ), which was recognized in investing activities in the statements of cash flow (iv) In December 2013, the Company entered into an equipment purchase contract with Harbin Jiamu Import & Export Trading Co., Ltd ("Jiamu Trading") for a total consideration of RMB1,629.3 million to purchase 70 production lines and RMB89.7 million to purchase testing equipment. In August 2015, the Company signed a supplemental contract with Harbin Jiamu Science and Technology Co., Ltd. (together with Jiamu Trading as "Jiamu") to purchase testing equipment in the amount of RMB16.3 million (equivalent to US$2.5 million). As of December 31, 2015 and 2014, the Company has paid RMB1,608.2 million (equivalent to US$247.2 million) and RMB1,130.9 million (equivalent to US$182.3 million) for production lines and testing equipment, respectively. As of December 31, 2015, the Company has received the equipment of 70 production lines, and hence recorded the related amount from prepayments to construction in progress. The balance of Jiamu as of December 31, 2015 mainly represents the prepayment for testing equipment. (v) On January 5, 2015, AL Composites Materials FZE ("AL Composites") entered into an equipment purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of US$271.2 million to purchase certain production and testing equipment. Pursuant to the contract with Peaceful, the Company has paid US$170.0 million as prepayments as of December 31, 2015. (vi) Others mainly include prepayments for Sichuan construction program to several third parties. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 8 – Borrowings The Company has credit facilities with several banks under which they draw short-term and long-term bank loans as described below. (a) Current December 31, 2016 2015 US$ US$ Unsecured loans 273,147,455 64,555,795 Loans secured by accounts receivable 50,454,086 43,037,196 Loans secured by restricted cash 32,474,300 27,100,000 Current portion of long-term bank loans (note b) 88,681,635 149,646,098 Total short-term loans, including current portion of long-term bank loans 444,757,476 284,339,089 As of December 31, 2016 and 2015, the Company's short-term bank loans (including the current portion of long-term bank loans) bear a weighted average interest rate of 4.0% and 4.2% per annum, respectively. All short-term bank loans mature at various times within one year and contain no renewal terms. In January 2016, the Company obtained a one-year secured loan of US$12 million from HSBC Middle East at an annual interest rate of one-month LIBOR (0.7717% as of December 31, 2016) plus 1.8%. This loan was secured by restricted cash of RMB17.8 million (equivalent to US$2.6 million) in the HSBC Bank in Harbin, China. The company repaid the loan on December 22, 2016. In January 2016, the Company obtained a one-year secured loan of US$16.6 million from HSBC Middle East at an annual interest rate of one-month LIBOR (0.7717% as of December 31, 2016) plus 1.8%. This loan was secured by restricted cash of RMB25.5 million (equivalent to US$3.7 million) in the HSBC Bank in Harbin, China. In April 2016, the Company obtained nine six-month secured loans in a total amount of RMB350 million (equivalent to US$50.5 million) by accounts receivables of RMB439.2 million (equivalent to US$63.3 million) at an annual interest rate of 4.350% from Harbin Longjiang Bank. In August 2016, the Company obtained a one-year secured loan of US$13.9 million from Industrial and Commercial Bank of China (Abu Dhabi Branch) at an interest of three-month LIBOR (0.9979% as of December 31, 2016) plus 2.0%. This loan was secured by restricted cash of RMB100.0 million (equivalent to US$14.6 million) in the Industrial and Commercial Bank of China in Harbin, China. The interest rate is reset every three months. On October 7, 2016, the Company obtained a one-year secured loan of US$2.0 million from Bank of China (Macau Branch) at an annual interest rate of 1.8%.The loan was secured by restricted cash of RMB15.0 million (equivalent to US$2.2 million) in Bank of China in Harbin, China. (b) Non-current December 31, 2016 2015 US$ US$ Secured loans 90,170,000 81,164,800 Unsecured loans 73,518,812 175,963,007 Syndicate loan facility 174,513,438 - Less: current portion 88,681,635 149,646,098 Total long-term bank loans, excluding current portion 249,520,615 107,481,709 On June 12, 2014, the Company obtained a three-year secured loan of US$70 million from Bank of China Paris Branch at interest rate of three-month LIBOR (0.9979% as of December 31, 2016). The loan is secured by restricted cash of RMB110 million (equivalent to US$15.9 million). The Company repaid US$4 million in 2015, US$5 million on June 9, 2016 and US$15 million on December 9, 2016, and the remaining of the loan amounting to US$46 million will be due on June 9, 2017. In accordance with the requirements of the bank, additional RMB109 million (equivalent to US$15.7 million) is pledged as restricted cash for this long-term bank loan on July 22, 2016. On December 11, 2014, the Company obtained a two-year unsecured loan of RMB197 million (equivalent to US$28.4 million) from Bank of Communication at an annual interest rate of 6.60%. The company repaid the loan on December 10, 2016. On April 22, 2015, the Company obtained a two-year unsecured loan of RMB40 million (equivalent to US$5.8 million) from Agriculture Bank of China at an annual interest rate of 5.75%. The loan will be due on April 20, 2017. In October and November, 2015, the Company obtained three five-year unsecured loans of RMB260 million (equivalent to US$37.5 million) from Bank of China at an annual interest rate of 4.75%. In January 2016, the Company obtained one four-year unsecured loans of RMB80 million (equivalent to US$11.5 million) from Bank of China at an annual interest rate of 4.75%. On December 9, 2016, the Company obtained a four-year unsecured loan of RMB30 million (equivalent to US$4.3 million) from Bank of China at an annual interest rate of 4.75%. All of these loans will be due on October 28, 2020. On May 13, 2016, the Company obtained two two-year secured loans of US$14.3 million from China Construction Bank (Dubai) at an interest of three-month LIBOR (0.9979% as of December 31, 2016) plus 1.6%. On May 17, 2016, the Company obtained two two-year secured loans of US$12.3 million from China Construction Bank (Dubai) at an interest of three-month LIBOR (0.9979% as of December 31, 2016) plus 1.6%. On May 22, 2016, the Company obtained a two-year secured loan of US$3.8 million from China Construction Bank (Dubai) at an interest of three-month LIBOR (0.9979% as of December 31, 2016) plus 1.6%. The interest rate is reset every three months. These loans are secured by restricted cash of RMB68.8 million (equivalent to US$9.9 million). All of these loans will be due on March 22, 2018. On August 22, 2016, Xinda Holding (HK) a wholly owned subsidiary of the Company, entered into a facility agreement on August 22, 2016 for a loan facility in an aggregate amount of US$180 million with a consortium of banks and financial institutions led by Standard Chartered Bank (Hong Kong) Limited. The Company paid arrangement fees and legal fees in the amount of US$6.77 million of which the unamortized balance is US$5.49 million as of December 31, 2016 for the related loan. Debt issuance costs are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the loan and amortized to interest expense using the effective interest rate of 5.594% as of December 31, 2016. US$22.5 million, US$22.5 million, US$45.0 million and US$90.0 million of the principal amount will be repaid on November 22, 2017, February 22, 2018, May 22, 2018 and August 22, 2018, respectively. On November 7, 2016, the Company obtained a fifteen-month secured loan of US$3.3 million from Industrial and Commercial Bank of China (Abu Dhabi Branch) at an annual interest rate of 2.2%. The loan is secured by restricted cash of RMB25 million (equivalent to US$3.6 million). The loan will be due on February 7, 2018. On November 30, 2016, the Company obtained a fifteen-month secured loan of US$10.5 million from Industrial and Commercial Bank of China (Abu Dhabi Branch) at an annual interest rate of 2.2%. The loan is secured by restricted cash of RMB80 million (equivalent to US$11.5 million). The loan will be due on February 28, 2018. As of December 31, 2016, the Company had total lines of credit of RMB7,346.5 million (US$1,059.0 million) including unused lines of credit of RMB3,326.6 million (US$479.5 million) with remaining terms less than 12 months and RMB414.3 million (US$59.7 million) with remaining terms beyond 12 months. Certain lines of credit contain financial covenants such as total stockholders' equity, debt asset ratio, current ratio, contingent liability ratio and net profit. As of December 31, 2016, the Company has met these financial covenants. Maturities on long-term bank loans (including current portion) are as follows: December 31, 2016 US$ 2017 88,681,635 2018 196,183,438 2019 - 2020 53,337,177 after 2020 - Total 338,202,250 |
Redemption of the senior notes
Redemption of the senior notes | 12 Months Ended |
Dec. 31, 2016 | |
Redemption Of Senior Notes | |
Redemption of the senior notes | Note 9 –Redemption of the senior notes On February 4, 2014, Favor Sea (BVI), a wholly owned subsidiary of the Company, issued US$150,000,000 aggregate principal amount of 11.75% Guaranteed Senior Notes due 2019 (the 'Notes') with issuance price of 99.080%. The Notes bear interest at a rate of 11.75% per annum, payable on February 4 and August 4 of each year, commencing August 4, 2014. The Notes were due to mature on February 4, 2019. Net proceeds after debt issuance costs and debt discount in the amount of US$6.5 million were approximately US$143.5 million. Debt issuance costs are presented on the consolidated balance sheets as a direct deduction from the carrying amount of notes payable and amortized to interest expense using the effective interest of 13.338% per annum. The Notes can be redeemed prior to their maturity On August 29, 2016, the Company redeemed the Notes outstanding, which had an aggregate principal of US$150,000,000 and a carrying of US$147,626,121 (including accrued and unpaid interest of US$1,194,081 ) at a redemption price equal to 100% of the principal amount of the Notes plus the applicable premium of US$15,382,395 and accrued and unpaid interest of US$1,223,958. The total aggregate amount paid to redeem the Notes was US$166,606,353, which resulted in a US$18,963,834 loss on debt extinguishment. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Accrued expenses and other current liabilities | Note 10 – Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: December 31, 2016 2015 US$ US$ Payables for purchase of property, plant and equipment 98,472,641 42,524,903 Accrued freight expenses 7,972,067 1,579,936 Accrued interest expenses 885,290 7,800,481 Advance from customers 93,066 82,009,002 Non income tax payables 4,499,161 4,353,730 Others (i) 7,417,141 2,720,660 Total accrued expenses and other current liabilities 119,339,366 140,988,712 (i) Others mainly represent accrued payroll and employee benefits, accrued audit and consulting fees, electricity fee and other accrued miscellaneous operating expenses. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 11 – Related party transactions The Company entered into related party transactions with Harbin Xinda High-Tech Co., Ltd. ("Xinda High-Tech"), an entity controlled by the wife of Mr. Han, the chief executive officer and controlling stockholder of the Company and Mr. Han's son. The significant related party transactions are summarized as follows: The significant related party transactions are summarized as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Costs and expenses resulting from transactions with related parties: Rental expenses for plant and office space 723,769 777,248 791,460 The related party balances are summarized as follows: December 31, 2016 2015 US$ US$ Amounts due from a related party: Prepaid rental expenses to Xinda High-Tech 229,624 244,836 2016 2015 US$ US$ Amounts due to a related party Rental payable to Mr Han's son 11,548 8,439 The Company rents the following plant and office buildings in Harbin, Heilongjiang province from Xinda High-Tech: Premise Leased Area (M 2 Annual Rental Fee (US$) Period of Lease Office building 23,894 719,934 Between January 1, 2014 and December 31, 2018 The Company rents the following facilities in Harbin, Heilongjiang province from Mr. Han's son: Premise Leased Area (M 2 Annual Rental Fee (US$) Period of Lease Facility 200 6,026 Between August 17, 2014 and August 16, 2016 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12– Income Taxes China XD and Xinda Holding (HK) US Sub Inc. ("Xinda Holding (US) ") (collectively referred to as the "U.S. Entities") are each subject to a tax rate of 34% and file separate U.S. federal income tax returns. Xinda Holding (US) was dissolved in 2016 as a result of the group re-organization. Under the current laws of the British Virgin Island ("BVI"), Favor Sea (BVI), a subsidiary of China XD, is not subject to tax on its income or capital gains. No provision for Hong Kong Profits Tax was made for Xinda Holding (HK) Co., Ltd. ("Xinda Holding (HK) "), (formerly known as Hong Kong Engineering Plastics Co., Ltd.), Xinda (HK) International Trading Co., Ltd. ("Xinda Trading", liquidated in February 2015), and Xinda (HK) Trading as they did not have any assessable profits arising in or derived from Hong Kong for any of the periods presented. Under the current laws of Dubai, AL Composites Materials FZE ("Dubai Xinda"), a subsidiary of China XD, is exempted from income taxes. The Company's PRC subsidiaries file separate income tax returns in the PRC. Effective from January 1, 2008, the PRC statutory income tax rate is 25% according to the Corporate Income Tax ("CIT") Law which was passed by the National People's Congress on March 16, 2007. Pursuant to an approval from the local tax authority in July 2013, Sichuan Xinda, a subsidiary of China XD, became a qualified enterprise located in the western region of the PRC, which entitled it to a preferential income tax rate of 15% from January 1, 2013 to December 31, 2020. The CIT Law and its implementation rules impose a withholding income tax at 10%, unless reduced by a tax treaty or arrangement, on the amount of dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC that are related to earnings accumulated beginning on January 1, 2008. Dividends relating to undistributed earnings generated prior to January 1, 2008 are exempt from such withholding income tax. China XD earnings from its subsidiaries in PRC and Dubai are subject to the U.S. federal income tax at 34%, less any applicable foreign tax credits. Due to its plan to indefinitely reinvest its earnings in the PRC, the Company has not provided for deferred income tax liabilities related to PRC withholding income tax on undistributed earnings of US$546,430,378 and US$488,303,847 as of December 31, 2016 and 2015, respectively. In addition, due to its plan to indefinitely reinvest its earnings in Dubai, the Company has not provided for deferred income tax liabilities related to Dubai on undistributed earnings of US$172,774,247 and US$117,827,046 as of December 31, 2016 and 2015, respectively. It is not practicable to estimate the amounts of unrecognized deferred income tax liabilities thereof. The components of income (loss) before income taxes are as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ US (3,221,934 ) (3,512,598 ) (4,957,190 ) BVI (31,424,331 ) (18,685,588 ) (16,070,146 ) Hong Kong SAR (5,447,344 ) (306,945 ) (973,523 ) Dubai 54,947,200 34,554,739 83,267,935 PRC, excluding Hong Kong SAR 104,181,978 89,920,646 77,775,570 Total income before income taxes 119,035,569 101,970,254 139,042,646 The Company's income tax expense (benefit) recognized in the consolidated statements of comprehensive income consists of the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Current income tax expense-PRC 19,715,649 20,618,211 20,089,436 Current income tax expense-US - - 195,598 Deferred income tax benefit-PRC (2,292,830 ) (2,380,236 ) (2,018,757 ) Total income tax expense 17,422,819 18,237,975 18,266,277 The effective income tax rate based on income tax expense and income before income taxes reported in the consolidated statements of comprehensive income differs from the PRC statutory income tax rate of 25% due to the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ PRC statutory income tax rate 25 % 25 % 25 % Increase (decrease) in effective income tax rate resulting from: Tax rate differential on HK entities not subject to PRC income tax 0.4 % - - Tax rate differential on BVI entities not subject to PRC income tax 6.6 % 4.6 % 2.9 % Tax rate differential on UAE entities not subject to PRC income tax (11.5 )% (8.5 )% (15.0 )% Non-deductible expenses 0.3 % 0.4 % 0.6 % Preferential tax rate (4.2 )% (4.5 )% (3.3 )% Change in valuation allowance 2.3 % 1.2 % 0.5 % R&D additional deduction (5.1 )% (2.6 )% 0.0 % Others 0.8 % 2.3 % 2.4 % Effective income tax rate 14.6 % 17.9 % 13.1 % The principal components of the Company's deferred income tax assets and deferred income tax liabilities are as follows: December 31, 2016 2015 US$ US$ Deferred income tax assets: Tax loss carry forwards 3,951,012 1,941,124 Less: valuation allowance (3,951,012 ) (1,941,124 ) Deferred income tax assets, net - - Deferred income tax liabilities: Property, plant and equipment 10,818,305 13,874,224 Total deferred income tax liabilities (included in other non-current liabilities) 10,818,305 13,874,224 The Research Institute was established with a registered capital of approximately US$0.4 million in 2007. The Research Institute provided research and development services to the Company's ultimate end customers. In December 2010, for tax purposes and because the Research Institute could not meet the Company's development needs, the Company dissolved the Research Institute and formed a new legal entity, Heilongjiang Xinda Enterprise Group Macromolecule Materials R&D Center Company Limited ("Xinda Group Material Research"). Based on applicable regulations promulgated by the local Civil Affairs Bureau, only the local government has the authority for the distribution of the assets of the Research Institute upon liquidation. Therefore, the Company dissolved the Research Institute by distributing the net assets of the Research Institute in the amount of US$84.0 million to the local government. The difference between the net assets in the amount of US$84.0 million and the amount of the initial registered capital of US$0.4 million represents undistributed accumulated profit generated by the Research Institute from its inception date to its liquidation date. Simultaneously, the local government granted the net assets back to the Research Center, the newly established subsidiary of Harbin Xinda in December 2010. The Research Center was established with a registered capital of approximately US$0.5 million funded by cash. A loss equal to the net assets of the Research Institute distributed to the local government was recognized in other expenses and a government grant for the receipts of the same assets back from the local government was recognized as other income in the consolidated statements of comprehensive income. Pursuant to the local tax regulations, the net assets granted to the Research Center are not subject to income tax to the extent the Research Center spends a total of US$84.0 million in five years from the date of grant. The expenditures of US$84.0 million will not be deductible for income tax purposes. As a result, the Company recognized a deferred income tax liability in the amount of US$21.5 million in connection with the net assets granted to the Research Center as of December 31, 2010. To the extent that the Company has spent on research and development equipment during the five years from the date of grant, deferred income tax liabilities relating to the net assets of Research Institute granted to Research Center will be reclassified to deferred income tax liabilities relating to property, plant and equipment, and recognized in profit or loss over the useful life of the asset. The Company spent a total of US$84.0 million on research and development equipment by the end of December 31, 2015, and the deferred income tax liabilities was US$10,818,305 and US$13,874,224 as of December 31, 2016 and 2015, respectively. The movements of the valuation allowance are as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Balance at the beginning of the year 1,941,124 727,711 73,182 Expiration due to liquidation (661,144 ) (68,070 ) - Additions of valuation allowance 2,801,055 1,333,527 662,151 Reduction of valuation allowance (130,023 ) (52,044 ) (7,622 ) Balance at the end of the year 3,951,012 1,941,124 727,711 The valuation allowance as of December 31, 2016, 2015 and 2014 was primarily provided for the deferred income tax assets of certain entities, which were at cumulative loss positions. As of December 31, 2016, for U.S. federal income tax purposes, the Company had tax loss carryforwards of (i) US$673,763 from US Entity, of which nil, US$153,565 and US$520,617 would expire by 2034, 2035 and 2036, respectively, if unused, (ii) US$10,595,029 from subsidiaries in PRC, of which US$270,686, US$3,423,410 and US$6,900,933 would expire by 2019, 2020 and 2021, respectively, if unused, and (iii) US$6,677,691 from subsidiaries in HK, which could be carried forward indefinitely to be offset against future profits. In view of the cumulative losses for the entities concerned, 100% valuation allowances were provided against their deferred income tax assets as of December 31, 2016, 2015 and 2014, which in the judgment of the management, are not more likely than not to be realized. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Year ended December 31, 2016 2015 2014 US$ US$ US$ Balance at beginning of year 21,660,307 14,609,258 8,807,490 Increase related to current year tax positions 4,268,805 7,051,049 5,801,768 Balance at end of year 25,929,112 21,660,307 14,609,258 At December 31, 2016, 2015 and 2014, there are US$21,547,559, US$18,370,729 and US$12,544,088 of unrecognized tax benefits that if recognized, would affect the annual effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and does not recognize penalties. During the years ended December 31, 2016, 2015 and 2014, the Company recognized approximately US$2,982,479, US$1,905,191, and US$1,322,135 interest expense. The Company had approximately US$5,757,273, and US$3,095,819 for the payment of interest accrued related to unrecognized tax benefits at December 31, 2016 and 2015, respectively which were included in other non-current liabilities. As of December 31, 2016 and 2015, US$25,845,041 and US$21,076,874 of unrecognized tax benefits were included in other non-current liabilities, respectively. US$84,071 of unrecognized tax benefit were presented as a reduction of the deferred income tax assets for tax loss carry forwards since the uncertain tax position would reduce the tax loss carry forwards under the tax law. The unrecognized tax benefits represent the estimated income tax expenses the Company would be required to pay, should the income tax rate used, taxable income and deductible expenses for tax purpose recognized in accordance with tax laws and regulations. The Company is currently unable to provide an estimate of a range of the total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months. The tax returns of the U.S. Entities are subject to U.S. federal income tax examination by tax authorities for the years from 2014 to 2016. 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 US$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 tax returns of the Company's PRC subsidiaries for the years from 2014 to 2016 are open to examination by the PRC tax authorities. |
Deferred Income
Deferred Income | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Income | Note 13 – Deferred Income On January 26, 2015, the Company entered into a memorandum and a fund support agreement (the "Agreement") with the People's Government of Shunqing District, Nanchong City, Sichuan Province ("Shunqing Government") pursuant to which Shunqing Government, through its investment vehicle, will extend to the Company RMB350 million (equivalent to US$50.5 million) to support the construction of the Sichuan plant. As of December 31, 2016, the Company has received RMB350 million (equivalent to US$50.5 million) in total from Shunqing Government in the form of government repayment of bank loans on behalf of the Company. In addition, the Company has received RMB111.6 million (equivalent to US$16.1 million) from Shunqing Government and RMB6.4 million (equivalent to US$0.9 million) from Ministry of Finance of the People's Republic of China to support the construction and RMB1.3 million (equivalent to US$0.2 million) special funds of ministerial key research projects from Ministry of Science and Technology of PRC as of December 31, 2016. Since the funding is related to construction of long-term assets, the amounts were recognized as government grant, which is included in deferred income on the condensed consolidated balance sheets, and to be recognized as other income in the consolidated statements of comprehensive income over the periods and in the proportions in which depreciation expense on the long-term assets is recognized. Upon Sichuan facility becoming operational in July 2016, RMB9.5 million (equivalent to US$1.4 million) government grants have been recognized as other income when related depreciation was recognized during the twelve-month period ended December 31, 2016. In addition, the Company also received RMB36 million (equivalent to US$5.2 million) from Shunqing Government with respect to interest subsidy for future bank, among which RMB15.0 million (equivalent to US$2.2 million) have been recognized as other income when related interest expense was recognized during twelve-month period ended December 31, 2016. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities, Noncurrent [Abstract] | |
Other non-current liabilities | Note 14 – Other non-current liabilities 2016 2015 US$ US$ Income tax payable-noncurrent (i) 31,602,314 24,172,693 Deferred income tax liabilities (note 12) 10,818,305 13,874,224 Total other non-current liabilities 42,420,619 38,046,917 (i) Income tax payable-noncurrent represents the accumulative balance of unrecognized tax benefits and related accrued interest. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock | Note 15 – Common Stock Pursuant to the amended Article of Incorporation dated March 12, 2009, the Company's authorized share capital is 550,000,000 shares, consisting of 500,000,000 shares of common stock (US$0.0001 par value), and 50,000,000 shares of all classes of preferred stock (US$0.0001 par value). |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock | Note 16 – Preferred Stock Series B preferred stock The Company issued 1,000,000 shares of Series B preferred stock to XD Engineering Plastics in December 2008. The Series B preferred stock is not convertible or redeemable. The holder of Series B preferred stock has 40% of the total voting power of the Company on a fully diluted basis. Holders of Series B preferred stock are not entitled to receive dividends. In the event of any liquidation, dissolution or winding up, whether voluntary or involuntary, the holders of issued and outstanding shares of Series B preferred stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the common stockholders and any other series of preferred stock ranking junior to the Series B preferred stock with respect to liquidation, US$1.00 per share in cash. The holders of Series B preferred stock will not be entitled to any further participation in any distribution of assets by the Company. Redeemable Series D convertible preferred stock On August 15, 2011, China XD entered into a securities purchase agreement (the "Securities Purchase Agreement") with MSPEA Modified Plastics Holding Limited, a Cayman Islands company and an affiliate of Morgan Stanley Private Equity Asia III Holdings (Cayman) Ltd, a Cayman Islands limited liability company ("MSPEA"), XD Engineering Plastics and Mr. Han, pursuant to which MSPEA purchased 16,000,000 shares of the Company's Series D convertible preferred stock with par value of US$0.0001 per share (the "Series D Preferred Stock"), for a total consideration of US$100 million or US$6.25 per share. On September 28, 2011, China XD issued 16,000,000 shares of Series D Preferred Stock and received total gross proceeds of US$100 million in cash. Net proceeds after issuance cost were approximately US$99.1 million. The significant terms of Series D Preferred Stock are as follows: (i) Conversion The holders of the Series D Preferred Stock have the right to convert all or any portion of their holdings into common stock at a price of US$6.25 per share from January 1, 2012 through February 4, 2019, subject to adjustments for stock splits, combinations, dividends or distributions of common stock, merger and reorganization. In addition, if the Company achieves net income as adjusted to exclude (i) all extraordinary or non-recurring gains or losses for the relevant period, (ii) all gains or losses derived from any business operation other than the principal business of the Company or otherwise derived outside the ordinary course of business of the Company for the relevant period, and (iii) all gains or losses attributable to the Series D Preferred Stock ("Actual Profit"), at least RMB360 million, RMB520 million and RMB800 million in 2011, 2012 and 2013, respectively, each outstanding Series D Preferred Stock will be converted into common stock from September 28, 2014 upon the delivery of a written notice from the Company to the holders of Series D Preferred Stock. The Company determined that there was no embedded beneficial conversion feature attributable to the Series D Preferred Stock at the commitment date since the initial conversion price of the Series D Preferred Stock was greater than the price of China XD's common stock. (ii) Voting The holders of Series D Preferred Stock have the same voting rights as the common stockholders on an "if-converted" basis. In addition, if 1,600,000 shares or more (adjusted for any dilutive corporate actions) of Series D Preferred Stock remain outstanding, holders of Series D Preferred Stock have veto rights over certain material corporate actions of the Company. (iii) Dividends Each share of Series D Preferred Stock shall be entitled to dividend or other distribution simultaneously with any dividend or distribution on any shares of the Company's common stock as if each share of Series D Preferred Stock has been converted to common stock. (iv) Liquidation preference In the event of the liquidation, dissolution or winding-up of the affairs of the Company, whether voluntary or involuntary (a "Liquidation"), the holders of Series D Preferred Stock then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders before any payment shall be made to the holders of shares of common stock by reason of their ownership thereof, but after any payment shall be made to the holders of any Series B preferred stock by reason of their ownership thereof, with respect to each share of Series D Preferred Stock, an amount equal to the greater of (i) an amount per share that would yield a total internal rate of return of 15% on the Series D Original Issuance Price, taking into account all cash dividends and/or distributions paid by the Company and received by the holder in respect of his or her share of Series D Preferred Stock (the IRR Price); and (ii) an amount per share as would have been payable had all shares of Series D Preferred Stock been converted into the Company's common stock pursuant to a voluntary conversion or a mandatory conversion immediately prior to such Liquidation (without taking into account any limitations or restrictions on the convertibility of the shares of Series D Preferred Stock). (v) Redemption Upon the occurrence of a triggering event as defined below, the holders of the Series D Preferred Stocks have the option to redeem the Series D Preferred Stock at a price equal to the IRR Price (the "Redemption Price"), by delivery of written notice to the Company (the "Redemption Request") at least 6 months prior to the proposed date of redemption (the "Redemption Date"). A triggering event means any of the following events: (I) the occurrence of any of the following: (i) the Actual Profit for the Financial Year ended December 31, 2011 is less than RMB360 million, or (ii) the Actual Profit for the Financial Year ended December 31, 2012 is less than RMB468 million, or (iii) the Actual Profit for the Financial Year ending December 31, 2013 is less than RMB608 million, which Actual Profit target has been removed pursuant to the Restated Certificate of Designation filed as of January 27, 2014 (such targets under (I) collectively, the "Actual Profit Targets"); (II) any breach by any of the Company, XD Engineering Plastics and Mr. Han (the "Principal Stockholders") of any representation, warranty, covenant or other agreement in the Securities Purchase Agreement, the Certificate of Designation, the Registration Rights Agreement, the Stockholders' Agreement, the Pledge Agreement and the Indemnification Agreements (collectively, the "Transaction Document") that (i) in the case of a breach of a covenant or agreement that is curable, has remained uncured for 30 days after the holder of Series D Preferred Stock has given written notice of such breach to the Company' Principal Stockholders and (ii) has had or could reasonably be expected to have a material adverse impact on (a) the business, operations, properties, financial position (including any material increase in provisions), earnings or condition of the Company, or (b) the value, marketability or liquidity of the Series D Preferred Stock taking into account any remedies already sought and received in connection with such breach; or (III) the commencement by the Company or any other member of the Company of any bankruptcy, insolvency, reorganization or of any other case or proceeding to be adjudicated a bankruptcy or insolvency, or the consent by it to the entry of a decree or order for relief in respect of the Company or any other member of the Company in an involuntary case; or the appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator other similar officials of the Company or any other member of the Company for the winding up or liquidation of its affairs. If any shares of Series D Preferred Stock remain outstanding on February 4, 2019, the holders of such shares shall require the Company to redeem each share of Series D Preferred Stock at a price equal to the IRR Price (the "Mandatory Redemption Price") no later than six months after the Original Maturity Date. The Mandatory Redemption Price per share was US$13.26 and US$11.53 as of December 31, 2016 and 2015, respectively. The Company concluded that it has met the Actual Profit Targets and that it is not probable any of the triggering events has occurred or is expected to occur. In addition, the Company concluded that it has met the performance target of RMB360 million, RMB520 million and RMB800 million in 2011, 2012 and 2013, respectively and accordingly it has the right to request the conversion of Series D Preferred Stock into common stock. As a result, it was not probable that the Series D Preferred Stock is redeemable as of December 31, 2016. Therefore no changes in the redemption value were recognized for any of the periods presented. The Company will assess the probability of whether the Series D Preferred Stock is redeemable at each reporting period end. Pursuant to the Stockholders' Agreement between MSPEA and the Principal Stockholders, if the Company shall at any time issue or sell any shares of common stock or equity securities, other than an issuance or sale in an exempted issuance, at a price per share, or in the case other equity securities exchangeable or convertible into shares of common stock, at a conversion or exercise price for a share of common stock (in each case, the "New Issue Price") that is less than the then effective conversion price of Series D Preferred Stock, the holders of Series D Preferred Stock shall have the right to purchase from the Principal Stockholders, and Principal Stockholders shall sell and transfer to the holders of Series D Preferred Stock, at par value per share, a number of shares of common stock that is equal to (i) the number of shares of common stock that the Series D Preferred Stock held by the holders of Series D Preferred Stock would have been convertible into as if the then effective conversion price is equal to the New Issue Price, minus (ii) the number of shares of common stock that the outstanding Series D Preferred Stock held by the holders of Series D Preferred Stock are convertible into under the then effective conversion price. The exempted issuance refers to (a) any issuance of common stock upon the conversion of the Series D Preferred Stock; (b) the conversion, exercise or exchange of options, warrants or convertible securities of the Company that are outstanding and have been fully disclosed to MSPEA as of September 28, 2011; (c) any issuance of shares of common stock or options to employees, officers, directors or other service providers of the Company pursuant to any stock or option plan duly approved for such purpose including the board of directors; (d) any issuance of common stock, options, warrants or convertible securities of the Company pursuant to acquisitions or other strategic transactions, in each case approved by the board of directors and (e) any issuance of adjustment shares that the Principal Stockholders shall sell and transfer to the holders of Series D Preferred Stock if the Company is unable to achieve the Actual Profit as defined below. In addition, the Principal Stockholders entered into a pledge agreement with the holders of Series D Preferred Stock to secure the payment and performance of the following obligations (collectively, the "Secured Obligations"), which are secured by the collateral under the Pledge Agreement between the holders of Series D Preferred Stock and the Principal Stockholders: (a) the full and prompt payment when due (whether at stated maturity, by redemption or acceleration or otherwise) of all debts, obligations and liabilities of Principal Stockholders owing to the holders of Series D Preferred Stock; (b) all reasonable costs and expenses incurred by the holders of Series D Preferred Stock to enforce this Agreement and maintain, preserve, collect and realize upon the collateral. The collateral refers to 16,000,000 shares of common stock, par value $0.0001, of China XD registered in the name of XD Engineering Plastic. The holders of Series D Preferred Stock have an option to purchase common stock at par value from the Principal Stockholders if the Company is unable to achieve the Actual Profit of RMB360 million, RMB520 million and RMB800 million in 2011, 2012 and 2013, respectively. The number of common stock to be purchased is based on a pre-set formula as specified in the Stockholders' Agreement. The Stockholders' Agreement was an inducement made to facilitate the investment in the Series D Preferred Stock on behalf of the Company. Therefore, the fair value of the options issued by the Principal Stockholders to the holders of the Series D Preferred Stock was recognized as additional paid-in capital and reflected as a reduction of the proceeds allocated to the Series D Preferred Stock. As of September 28, 2011, the fair value of the options was determined to be US$1,501,000 based on the Company's common stock price on September 28, 2011, and the probability of the Company's future financial projection and the expected volatility of the Company's common stock. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Note 17 – Warrants In connection with the issuance of Series C preferred stock on December 1, 2009, the Company also issued Series A investor warrants to purchase a total of 1,320,696 shares of common stock at an exercise price of US$5.50 per share with a five-year term. On April 3, 2014, 130,435 Series A investor warrants were exercised for 130,435 shares of the common stocks of the Company. The Company received proceeds of US$596,740 in cash on April 3, 2014. In addition, 894,383 shares of Series A investor warrants were exercised using cashless method for 472,023 shares of the common stocks of the Company during the year ended December 31, 2014. 295,878 investor warrants expired on December 1, 2014. The Company also issued Series A placement agent warrants to purchase a total of 117,261 shares of common stock at an exercise price of US$5.50 per share, with a five-year term to a third party as part of the placement fee. The exercise price of the Series A investor warrants was adjusted to US$4.90 per share in connection with the common stock direct offering on October 4, 2010. The warrants expired on December 1, 2014. In connection with the common stock direct offering on October 4, 2010, the Company issued Series C investor warrants to purchase a total of 1,666,667 shares of common stock at an exercise price of US$6.00 per share. The warrants are exercisable for a period between April 8, 2011 and October 14, 2011. The Company also issued Series C placement agent warrants to purchase 166,667 shares of common stock at an exercise price of US$7.50 per share to a third party as part of the placement fee. The warrants expired on July 6, 2013. Pursuant to the agreements of the Series A investor warrants, if the Company issues its common stock for a consideration per share less than the exercise price of the Series A investor warrants, the exercise price of the Series A investor warrants shall be reduced to the lower issuance price. Also, if the Company grants any options or other securities convertible to its common stock for which the exercise or conversion price is less than the exercise price of the Series A investor warrants, the exercise price of the Series A investor warrants shall be reduced to the lowest exercise or conversion price. The holders of the Series A placement agent warrants have the same down-round protection as the holders of the Series A investor warrants. The Company's Series A investor warrants and Series A placement agent warrants with down-round protection are not considered indexed to a company's own stock under ASC Subtopic 815-40, Contracts in Entity's Own Equity The Company also determined that the Series C placement agent warrants are derivatives because the warrants require a net cash settlement if the Company fails to cause the transfer agent to timely transmit to the warrant holders a certificate or certificates representing the shares of common stock upon exercise. Accordingly, the Company accounted for these warrants at fair value with changes in fair value recorded in earnings at each reporting period. There were no outstanding warrants as of December 31, 2014. The changes in the fair value of warrants during the years presented is as follow: Series A investor warrants Series A placement agent warrants Series C placement agent warrants Total US$ US$ US$ US$ As of December 31, 2013 1,004,910 58,491 - 1,063,401 Change in fair value 1,929,565 (58,491 ) - 1,871,074 ) Exercise of warrants (2,934,475 ) - - (2,934,475 ) As of December 31, 2014 - - - - |
Stock based compensation
Stock based compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock based compensation | Note 18– Stock based compensation Stock options issued to employees, directors and consultants On May 26, 2009, the Board of Directors approved the adoption of the 2009 Stock Incentive Plan (the "2009 Plan"), which provides for the granting of stock options and other stock-based awards to key employees, directors and consultants of the Company. The aggregate number of common stock which may be issued under the 2009 Plan may not exceed 7,800,000 shares. Nonvested shares On August 7, 2010, the Company's Board of Directors approved the grant of 99,856 nonvested shares to four independent directors, two directors and certain executive officers and employees. 19,856 shares vested on February 7, 2011 and 80,000 shares vested on August 6, 2013. On October 24, 2011, the Company's Board of Directors approved the grant of 26,405 nonvested shares to four independent directors, all vested on April 24, 2012. On August 7, 2012, the Company's Board of Directors approved the grant of (i) 230,000 nonvested shares to certain executive officers and employees which vested on August 6, 2015, (ii) 225,000 nonvested shares to 15 consultants which vested on February 7, 2013, and (iii) 10,000 nonvested shares to a former employee which vested on the date of grant. On May 8, 2013, the Company's Board of Directors approved the grant of 26,361 nonvested shares to three independent directors, all of which vested on November 8, 2013. On August 7, 2013, the Company's Board of Directors approved the grant of (i) 192,370 nonvested shares to certain executive officers and employees which will vest on August 7, 2016; (ii) 674,205 nonvested shares to 17 consultants and two independent directors which vested on February 7, 2014. On August 7, 2014, the Company's Board of Directors approved the grant of (i) 282,460 nonvested shares to certain executive officers and employees which will vest on August 7, 2017; (ii) 9,488 nonvested shares to two independent directors all of which vested on February 7, 2015. On August 7, 2015, the Company's Board of Directors approved the grant of (i) 192,300 nonvested shares to certain executive officers and employees which will vest on August 7, 2018; (ii) 10,907 nonvested shares to three independent directors was vested on February 7, 2016. A summary of the nonvested shares activity for the years ended December 31, 2016, 2015, and 2014 is as follows: Number of Nonvested Shares Weighted Average Grant date Fair Value US$ Outstanding as of December 31, 2013 1,090,575 4.89 Granted 291,948 5.13 Vested (674,205 ) 4.58 Forfeited (61,030 ) 4.47 Outstanding as of December 31, 2014 647,288 5.00 Granted 203,207 6.00 Vested (171,488 ) 4.40 Forfeited (64,280 ) 4.65 Outstanding as of December 31, 2015 614,727 5.54 Granted - - Vested (161,257 ) 4.24 Forfeited (51,260 ) 5.28 Outstanding as of December 31, 2016 402,210 6.10 Expected to vest as of December 31, 2016 325,467 6.10 The total fair value of shares vested during the years ended December 31, 2016, 2015, and 2014 was and US$683,106, US$754,547, and US$3,090,766, respectively. The Company recognized US$686,491, US$813,699 and US$1,003,040 of compensation expense in general and administrative expenses relating to nonvested shares for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, total unrecognized compensation cost relating to nonvested shares was US$859,207, which is to be recognized over a weighted average period of 1.03 years. Stock options On October 10, 2015, the Company's Board of Directors approved the grant of stock options to purchase 72,000 shares of the Company's common stock to six consultants at an exercise price of US$0.24. On February 1, 2016, 27000 shares of the options was vested and the remaining 45,000 was cancelled as a result of not meeting the performance requirement of the company. The Company reversed recognized expense for the stock options granted to consultants who did not meet the service targets. On October 10, 2015, the Company's Board of Directors also approved the grant of stock options to purchase 450,000 shares of the Company's common stock to three sales consultants at an exercise price of US$0.24. The options have a performance condition which requires the consultants to develop specified number of new end customers during the service period of one year. The options can be vested at the end of six month if the performance condition is met. The awards will be forfeited if such performance condition is not met at the end of the service period. Selling and marketing expenses are recognized through the period of service as the service is performed and adjusted for changes in fair value until performance is complete. During the year ended December 31, 2016, due to the failure to meet the performance targets, the options of 450,000 common shares were expired No expenses were recorded for the twelve months ended December 31, 2016. A summary of stock options activity for the years ended December 31, 2016, 2015 and 2014 is as follows. Number of Options Outstanding Weighted Average Exercise Price US$ Outstanding as of December 31, 2014 - - Granted 72,000 0.24 Outstanding as of December 31, 2015 72,000 0.24 Vested (27,000 ) 0.24 Forfeited (45,000 ) 0.24 Outstanding as of December 31, 2016 - - The Company recognized negative US$151,893 of share-based compensation expense in general and administration expenses relating to stock options for the years ended December 31, 2016 and, US$230,463 and nil of share-based compensation expense in general and administration expenses relating to stock options for the years ended December 31, 2015 and 2014, respectively. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per common stock: | |
Earnings per share | Note 19– Earnings per share Basic and diluted earnings per share are calculated as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Numerator: Net income 101,612,750 83,732,279 120,776,369 Less: Earnings allocated to participating Series D convertible preferred stock (24,652,636 ) (20,350,826 ) (29,552,623 ) Earnings allocated to participating nonvested shares (817,078 ) (770,145 ) (1,026,493 ) Net income for basic and diluted earnings per share 76,143,036 62,611,308 90,197,253 Denominator: Denominator for basic earnings per share 49,418,188 49,225,566 48,833,434 Dilutive effect of outstanding share options 1,009 3,894 - Denominator for diluted earnings per share 49,419,197 49,229,460 48,833,434 Earnings per common share: Basic and diluted earnings per common share 1.54 1.27 1.85 The following table summarizes potentially dilutive securities excluded from the calculation of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, because their effects are anti-dilutive: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Numerator: Shares issuable upon conversion of Series D convertible preferred stocks 16,000,000 16,000,000 16,000,000 |
Statutory reserves
Statutory reserves | 12 Months Ended |
Dec. 31, 2016 | |
Statutory reserves [Abstract] | |
Statutory reserves | Note 20– Statutory reserves Under PRC rules and regulations, all subsidiaries of China XD in the PRC are required to appropriate 10% of their net income, as determined in accordance with PRC accounting rules and regulations, to a statutory surplus reserve until the reserve balance reaches 50% of their registered capital. The appropriation to this statutory surplus reserve must be made before distribution of dividends to China XD can be made. The statutory reserve is non-distributable, other than during liquidation, and can be used to fund previous years losses, if any, and may be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently outstanding, provided that the remaining balance of the statutory reserve after such issue is not less than 25% of the registered capital. For the years ended December 31, 2016, 2015 and 2014, China XD' subsidiaries in the PRC made appropriations to the reserve fund of RMB46,947,403 (equivalent to US$7,072,842), RMB48,174,525(equivalent to US$7,651,365) and RMB37,156,541(equivalent to US$6,030,731), respectively. As of December 31, 2016, 2015 and 2014, the accumulated balance of the statutory surplus reserve was RMB186,952,683 (equivalent to US$29,648,380) , RMB140,005,280 and RMB91,830,755, respectively. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 21– Commitments and contingencies (1) Lease commitments Future minimum lease payments under non-cancellable operating leases agreements as of December 31, 2016 were as follows. The Company's leases do not contain any contingent rent payments terms. US$ Years ending December 31, 2017 1,402,571 2018 914,750 2019 113,623 2020 113,623 2021 113,623 2022 and thereafter 908,981 Rental expenses incurred for operating leases of plant and equipment and office spaces were US$2,317,321, US$1,698,088 and US$1,476,640 in 2016, 2015 and 2014, respectively. There are no step rent provisions, escalation clauses, capital improvement funding requirements, other lease concessions or contingent rent in the lease agreements. The Company has no legal or contractual asset retirement obligations at the end of leases. The Company's leases do not contain any contingent rent payments terms. (2) Sichuan plant construction and equipment purchase On March 8, 2013, Xinda Holding (HK) entered into an investment agreement with Shunqing Government, pursuant to which Xinda Holding (HK) will invest RMB1.8 billion in property, plant and equipment and approximately RMB0.6 billion in working capital, for the construction of Sichuan plant. As of December 31, 2016, the Company has a remaining commitment of RMB69.9 million (equivalent to US$10.1 million) mainly for facility construction. In September 2016, Sichuan Xinda entered into equipment purchase contracts with Harbin Hailezi Science and Technology Co., Ltd. ("Hailezi") for a consideration of RMB17.0 million (equivalent to US$2.5 million) to purchase storage facility and testing equipment. As of December 31, 2016, Sichuan Xinda has a remaining commitment of RMB11.0 million (equivalent to US$1.6 million). On October 20, 2016, Sichuan Xinda entered into an equipment purchase agreement purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of US$12.9 million to purchase certain production and testing equipment. As of December 31, 2016, the Company has a commitment of US$12.9 million. On November 15, 2016, Sichuan Xinda entered into decoration contract with Sichuan Beijin Construction Engineering Co. Limited ("Beijin Construction") to perform indoor and outdoor decoration work for a consideration of RMB237.6 million (equivalent to US$34.3 million). As of December 31, 2016, Sichuan Xinda has a remaining commitment of RMB207.6 million (equivalent to US$29.9 million). (3) Dubai plant construction and equipment On April 28, 2015, Dubai Xinda entered into a warehouse construction contract with Falcon Red Eye Contracting Co. L.L.C. for a total consideration of AED6.7 million (equivalent to US$1.8 million). As of December 31, 2016, the Company has a remaining commitment of US$0.9 million. On September 21, 2016, Dubai Xinda entered into a plant purchase contract with Samim Group Fze for a total consideration of AED55.3 million (equivalent to US$15.0 million). As of December 31, 2016, the Company has a remaining commitment of US$9.7 million. In September, 2016, Dubai Xinda entered into apartment purchase contracts with Dubai Sports City LLC ("Sports City") for a total consideration of AED14.0 million (equivalent to US$3.8 million). As of December 31, 2016, the Company has a remaining commitment of AED3.7 million (equivalent to US$1.0 million). (4) Contingencies The Company and certain of its officers were named as defendants in two putative securities class action lawsuits filed on July 15, 2014 and July 16, 2014 in the United States District Court for the Southern District of New York. On March 23, 2016, the Court issued an Opinion and Order dismissing the Consolidated Class Action Complaint without prejudice. On May 6, 2016, the lead plaintiffs moved the Court for leave to amend the Consolidated Class Action Complaint. On June 24, 2016, the Company filed its opposition to the lead plaintiffs' motion. On August 8, 2016, in conjunction with filing the reply brief in support of their motion, the lead plaintiffs moved to strike certain documents referred to in the Company's opposition. The Company filed its opposition to the lead plaintiffs' motion to strike on September 16, 2016. On March 8, 2017, the Court entered an Order in the Company's favor denying the lead plaintiffs' motion for leave to amend and denying the lead plaintiffs' motion to strike. The lead plaintiffs may appeal dismissal of their lawsuits. The Company, after consultation with its legal counsel, continues to believe that the lawsuits are without merit and will continue to vigorously defend against them. Nevertheless, there is a possibility that a loss may have been incurred. In accordance with ASC Topic 450, no loss contingency was accrued as of December 31, 2016 since the possible loss or range of loss cannot be reasonably estimated. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2016 | |
Revenues [Abstract] | |
Revenues | Note 22 – Revenues Revenues consist of the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Modified Polyamide 66 (PA66) 260,107,405 219,082,301 192,374,156 Modified Polyamide 6 (PA6) 280,070,036 203,485,029 223,122,191 Plastic Alloy 401,664,431 350,620,202 400,306,257 Modified Polypropylene (PP) 178,729,819 164,828,880 232,421,229 Modified Acrylonitrile butadiene styrene (ABS) 42,121,680 40,510,344 36,804,599 Polyoxymethylenes (POM) 13,370,532 3,481,072 3,606,000 Polyphenylene Oxide (PPO) 15,315,570 12,984,368 14,830,647 Polylactide (PLA) 2,591,856 5,661 13,952 Raw materials 2,409,070 3,373,854 7,206,661 Others 5,298,499 821,183 - Total Revenue 1,201,678,898 999,192,894 1,110,685,692 |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | Note 23 – Selected Quarterly Financial Information (Unaudited) The following tables show a summary of the Company's quarterly financial information for each of the four quarters of 2016 and 2015 (in millions, except gross margin and per share amounts): Fourth Quarter Third Quarter Second Quarter First Quarter 2016: Revenues $ 377.8 $ 331.8 $ 277.1 $ 215.0 Gross profit $ 82.3 $ 69.6 $ 60.3 $ 34.8 Net income $ 36.7 $ 20.2 $ 33.3 $ 11.4 Earnings per share Basic $ 0.56 $ 0.31 $ 0.51 $ 0.17 Diluted $ 0.56 $ 0.31 $ 0.51 $ 0.17 Fourth Quarter Third Quarter Second Quarter First Quarter 2015: Revenues $ 272.8 $ 239.1 $ 265.4 $ 221.9 Gross profit $ 52.0 $ 29.3 $ 51.5 $ 48.6 Net income $ 26.8 $ 6.0 $ 25.5 $ 25.4 Earnings per share Basic and diluted $ 0.41 $ 0.09 $ 0.39 $ 0.39 |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographic Revenue Information | Note 24 – Geographic Information The following summarizes the Company's revenues from the following geographic areas (based on the location of the operating units): Years Ended December 31, 2016 2015 2014 US$ US$ US$ Revenues (in US$ millions) PRC 1,091.5 927.6 970.5 Dubai, UAE 110.2 71.6 140.1 Total 1,201.7 999.2 1,110.6 The following summarizes the Company's Long-lived assets (including Property, plant and equipment, net, Years Ended December 31, 2016 2015 2014 US$ US$ US$ Long-lived assets (in US$ millions) PRC 483.7 544.6 451.4 Dubai, UAE 369.9 253.8 82.3 Total 853.6 798.4 533.7 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 25– Subsequent Events On December 12, 2016, Sichuan Xinda entered into a strategic investment agreement with Shunqing Government, Nanchong City, Sichuan Province. Pursuant to the agreement, Sichuan Xinda will invest RMB2.2 billion (equivalent to US$317.1 million) in bio-composite project and RMB300 million (equivalent to US$43.2 million) on additive manufacturing used composites (3D printing materials) project, respectively. On January 3, 2017, Sichuan Xinda entered into two revocable equipment purchase contracts with Harbin Hailezi Science and Technology Co., Ltd. ("Hailezi") to purchase production equipment, packing equipment and storage facility for a total consideration of RMB1.44 billion (equivalent to US$207.4 million), which were estimated) to be fully delivered by April 2018. Pursuant to the contracts with Hailezi, Sichuan Xinda has prepaid RMB863.5 million (equivalent to US$124.5 million) and has a remaining commitment of RMB575.6 million (equivalent to US$82.9 million) as of March 16, 2017. equivalent to US$3.0 million equivalent to US$0.9 million On February 17, 2017, China XD Plastics Company Limited (the "Company") issued a press release announcing that its board of directors (the "Board") has received a preliminary non-binding proposal letter, dated February 16, 2017, from its Chairman and Chief Executive Officer, Mr. Jie Han ("Mr. Han"), XD Engineering Plastics Company Limited ("XD Engineering"), a company incorporated in the British Virgin Islands and wholly owned by Mr. Han, and MSPEA Modified Plastics Holding Limited, an affiliate of Morgan Stanley Private Equity Asia III, Inc. (collectively, the "Buyer Consortium"), to acquire all of the outstanding shares of common stock of the Company not already beneficially owned by the Buyer Consortium in a "going-private" transaction (the "Transaction") for US$5.21 per share of common stock in cash. The proposal letter states that the Buyer Consortium expects that the Board will appoint a special committee of independent directors to consider the proposal and make a recommendation to the Board. The proposal letter also states that the Buyer Consortium will not move forward with the proposed Transaction unless it is approved by such a special committee, and the proposed Transaction will be subject to a non-waivable condition requiring approval by majority shareholder vote of shareholders other than the Buyer Consortium members. The Buyer Consortium currently beneficially owns approximately 74% of the issued and outstanding shares of common stock of the Company on a fully diluted and as-converted basis. The Board has established a special committee (the "Special Committee") of disinterested directors to consider the proposal The Special Committee is composed of the following independent directors of the Company: Mr. Lawrence W. Leighton, Mr. Feng Li, and Mr. Linyuan Zhai, with Mr. Leighton serving as chairperson of the Special Committee. The Special Committee will be responsible for evaluating, negotiating and recommending to the Board any proposals involving a strategic transaction by the Company with one or more third parties. The Special Committee intends to retain advisors, including an independent financial advisor, to assist in the evaluation of the proposal and any additional proposals that may be made by the Buyer Consortium. The Special Committee cautions the Company's shareholders and others considering trading in its securities that the Special Committee has not made any decisions with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made by the Buyer Consortium or any other person, that any definitive agreement will be executed relating to the proposed Transaction, or that this or any other transaction will be approved or consummated. |
Summary of significant accoun33
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Consolidation | (b) Consolidation The accompanying consolidated financial statements include the financial statements of China XD and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | (c) Use of Estimates The preparation of consolidated financial statements in accordance 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 recoverability of the carrying amounts of property, plant and equipment, the realizability of inventories, the useful lives of property, plant and equipment, the collectability of accounts receivable, the fair values of stock-based compensation awards and the accruals for tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. |
Foreign Currency | (d) Foreign Currency The Company's reporting currency is the U.S. dollar (US$). The functional currency of China XD Plastics and its subsidiaries in the United States, BVI, Hong Kong and Dubai, UAE is the US$. The functional currency of China XD's subsidiaries in the PRC is Renminbi (RMB). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive income. Assets and liabilities of subsidiaries with functional currencies other than US$ are translated into US$ using the exchange rate on the balance sheet date. Revenues and expenses are translated into US$ at average rates prevailing during the reporting period. The differences resulting from such translation are recorded as a separate component of accumulated other comprehensive loss within stockholders' equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People's Bank of China or other institutions authorized to buy and sell foreign exchange. |
Cash and cash equivalents, time deposits and restricted cash | (e) Cash and cash equivalents, time deposits and restricted cash Cash and cash equivalents consists of cash on hand, cash in bank and interest-bearing certificates of deposit with an initial term of three months or less when purchased. Time deposits represent certificates of deposit with initial terms of six or twelve months when purchased. As of December 31, 2016 and 2015, the Company's time deposits bear a weighted average interest rate of 1.3% and 2.6% per annum, respectively. Cash deposits in bank that are restricted as to withdrawal or usage for up to 12 months are reported as restricted cash in the consolidated balance sheets and excluded from cash and cash equivalents in the consolidated statements of cash flows. Cash deposits of US$9,917,832 and US$16,907,470 as of December 31, 2016 and 2015 that are restricted for period beyond 12 months from the balance sheet date are included in other non-current assets in the consolidated balance sheets and also excluded from cash and cash equivalents in the consolidated statements of cash flows. Short-term bank deposits that are pledged as collateral for bills payable relating to purchases of raw materials are reported as restricted cash and amounted to US$33,673,057 and US$8,069,475 as of December 31, 2016 and 2015, respectively. Upon maturity and repayment of the bills payable, which is generally within 6 months, the cash becomes available for use by the Company. The cash will be available for use by the Company 90 days from the issuance of the letter of credit. The cash flows from the pledged bank deposits, which relate to purchases of raw materials, are reported within cash flows from operating activities in the consolidated statements of cash flows. Short-term bank deposits that are pledged as collateral for short-term and long-term bank borrowings are reported as restricted cash and amounted to US$69,816,345 and US$32,010,452 as of December 31, 2016 and 2015, respectively. Long-term bank deposits that are pledged as collateral for issuance of letter of guarantee are reported as other non-current assets and amounted to US$9,917,832 and US$16,907,470 as of December 31, 2016 and 2015, respectively. The cash flows from such bank deposits are reported within cash flows from financing activities in the consolidated statements of cash flows. |
Accounts Receivable | (f) Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. In establishing the required allowance, management considers historical losses, the amount of accounts receivables in dispute, the accounts receivables aging and the customers' payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | (g) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Work-in-progress and finish goods comprise direct materials (including purchasing, receiving and inspection costs), direct labor and an allocation of related manufacturing overhead based on normal operating capacity. |
Long-lived Assets | (h) Long-lived Assets Property, plant and equipment Property, plant and equipment are initially recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property, plant and equipment are as follows: Estimated Useful Life Workshops and buildings 39 years Machinery, equipment and furniture 5-10 years Motor vehicles 5 years An appropriate allocation of depreciation expense of property, plant and equipment attributable to manufacturing activities based on normal capacity is capitalized as part of the cost of inventory, and expensed in cost of revenues when the inventory is sold. Costs incurred in the construction of property, plant and equipment, including an allocation of interest expense incurred, are capitalized and transferred into their respective asset category when the assets are ready for their intended use, at which time depreciation commences. Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. Land Use Rights A land use right in the PRC represents an exclusive right to occupy, use and develop a piece of land during the contractual term of the land use right. The cost of a land use right is usually paid in one lump sum at the date the right is granted. The prepayment usually covers the entire period of the land use right. The lump sum advance payment is capitalized and recorded as land use right and then charged to expense on a straight-line basis over the period of the right, which is normally 50 years. Amortization expense of land use rights was US$468,007, US$411,178 and US$259,310 for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in general and administrative expenses. |
Impairment of Long-Lived Assets | (i) Impairment of Long-lived Assets Long-lived assets, such as property, plant and equipment, and land use rights, are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. |
Derivative Financial Instruments | (j) Derivative Financial Instruments The Company recognizes all derivative instruments as either assets or liabilities at their respective fair values. Changes in the fair value of derivative instruments not designated for hedge accounting are recognized in earnings. |
Revenue Recognition | (k) Revenue Recognition The Company sells its products primarily to approved distributors. Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery of the products has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. Products sales For sales in PRC, acceptance of delivery of the products by the distributors is evidenced by goods receipt notes signed by the distributors' customers (or end users). The distributors accept the products at the time they are delivered to the distributors' customers (or end customers). Delivery acceptance is evidenced by signed goods receipt notes. The Company has no remaining obligations after the distributors' acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the distributors, the risks and rewards of ownership of the products is transferred to the distributor upon the signing of the goods receipt notes and the distributor has no rights to return the products (other than for defective products). For sales to ROK, delivery of the products occurs at the point in time the product is delivered to the named port of shipment, which is when the risks and rewards of ownership are transferred to the customer. For the years ended December 31, 2016, 2015 and 2014, sales returns were minimal. The selling price, which is specified in the sales contracts or purchase orders, is fixed. Under the terms of the sales contract, upon the sale of the products to the distributors and the signing of the good receipts notes, the Company has the legal enforceable right to receive full payment of the sales price. The distributors' obligation to pay the Company is not dependent on the distributors selling the products or collecting cash from their customers (or end customers). The Company's sales are net of value added tax ("VAT") and business tax collected on behalf of tax authorities in respect of product sales. VAT and business tax collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. |
Cost of revenues | (l) Cost of revenues Cost of revenues represents costs of raw materials (including purchasing, receiving and inspection costs), packaging materials, labor, utilities, depreciation and amortization of manufacturing facilities and warehouses, handling costs, outbound freight and inventory write-down. Depreciation and amortization of manufacturing facilities and warehouses attributable to manufacturing activities is capitalized as part of the cost of inventory, and expensed in costs of revenues when the inventory is sold. |
Selling, general and administrative expenses | (m) Selling, general and administrative expenses Selling expenses represents primarily costs of payroll, benefits, commissions for sales representatives and advertising expenses. General and administrative expenses represents primarily payroll and benefits costs for administrative employees, rent and operating costs of office premises, depreciation and amortization of office facilities, and other administrative expenses. |
Research and Development Expense | (n) Research and Development Expense Research and development costs are expensed as incurred. |
Government Grants | (o) Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Government grants for the purpose of giving immediate financial support to the Company with no future related costs are recognized as other income in the Company's consolidated statements of comprehensive income. Government grants related to the acquisition of assets are recorded as deferred income on the consolidated balance sheets when the grants become receivable, and recognized as other income in the consolidated statements of comprehensive income on a straight-line basis over the estimated useful lives of those assets. |
Income Taxes | (p) 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 tax operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates or tax laws on deferred income tax assets and liabilities is recognized in the consolidated statements of comprehensive income in the period the change in tax rates or tax laws is enacted. 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. The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. 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 Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense, and general and administration expenses, respectively in the consolidated statements of comprehensive income. |
Bills Payable | (q) Bills Payable Bills payable represent bills issued by financial institutions to the Company's raw material suppliers. The Company's suppliers receive payments from the financial institutions upon maturity of the bills and the Company is obliged to repay the face value of the bills to the financial institutions. |
Employee Benefit Plans | (r) Employee Benefit Plans Pursuant to relevant PRC regulations, the Company is 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 rate of approximately 40% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income when the related service is provided. For the years ended December 31, 2016, 2015 and 2014, the costs of the Company's contributions to the defined contribution plans amounted to US$3,878,202, US$1,788,552, and US$1,555,471, respectively. For the years ended December 31, 2016, 2015 and 2014, 70%, 77% and 78% of costs of employee benefits were recorded in general and administration expenses, respectively, with the remaining portion of costs of employee benefits in selling expenses, research and development expenses and cost of revenues each year. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. |
Stock Based Compensation | (s) Stock Based Compensation The Company measures the cost 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 cost over the period during which the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect any expected forfeitures prior to vesting. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. |
Commitments and Contingencies | (t) Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, product and environmental liability, and non-income tax matters. 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. |
Earnings Per Share | (u) Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income attributable to common stockholders by the weighted average number of common stock outstanding during the year using the two-class method. Under the two-class method, net income attributable to common stockholders is allocated between common stock and other participating securities based on participating rights in undistributed earnings. Nonvested shares and redeemable Series D convertible preferred stock are participating securities since the holders of these securities participate in dividends on the same basis as common stockholders. Diluted EPS is calculated by dividing net income attributable to common stockholders as adjusted for the effect of dilutive common stock equivalent, if any, by the weighted average number of common stock and dilutive common stock equivalent outstanding during the year. Potential dilutive securities are not included in the calculation of diluted earnings per share if the impact is anti-dilutive. |
Segment reporting | (v) Segment reporting The Company uses the management approach in determining reportable operating segments. The management approach consider the internal reporting used by the Company's chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company's reportable operating segments. Management has determined that the Company has one operating segment, which is the modified plastics segment. |
Fair Value Measurements | (w) Fair Value Measurements The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company 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: - Level 2 Inputs - Level 3 Inputs 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. - The fair value of restricted cash and time deposits as of December 31, 2016 and 2015 are categorized as Level 2 measurement. - The fair value of foreign currency forward contracts as of December 31, 2014 is categorized as Level 3 measurement. The Company did not have any financial assets and liabilities or nonfinancial assets and liabilities that are measured and recognized at fair value on a recurring or nonrecurring basis as of December 31, 2016 and 2015. Management used the following methods and assumptions to estimate the fair values of financial instruments at the balance sheet dates: - Short-term financial instruments, including cash and cash equivalents, restricted cash, time deposits, accounts receivable, amounts due from a related party, short-term bank loans, bills payable, accounts payable, amounts due to a related party and accrued expenses and other current liabilities- carrying amounts approximate fair values because of the short maturity of these instruments. - Long-term bank loans-fair value is based on the amount of future cash flows associated with each loan discounted at the Company's current borrowing rate for similar debt instruments of comparable terms. The carrying value of the long-term bank loans approximate their fair values as the long-term bank loans carry interest rates which approximate rates currently offered by the Company's banks for similar debt instruments of comparable maturities. - Derivative liabilities on foreign currency forward contracts- fair values are determined using a discount cash flow model, which discounts the difference between the forward contract exchange rate from the quoted curve and the contract rate multiplied by the notional amounts. It considers the following significant inputs: risk-free rate and foreign exchange rate. |
Recently Issued Accounting Standards | (x) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company plans to complete its evaluation by the third quarter of 2017, including an assessment of the new expanded disclosure requirements and a final determination of the transition method we will use to adopt the new standard. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 is effective for public companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. This standard will be effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. Adoption of this new standard is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addressed and provided guidance for each of eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-15 on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard required that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for public companies for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
Description of business and s34
Description of business and significant concentrations and risks (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Description of business and significant concentrations and risks [Abstract] | |
Schedule of Sales Concentrations by Major Distributors | The Company's sales are highly concentrated. Sales to distributors and the end customer in the ROK, which individually exceeded 10% of the Company's revenues, for the years ended December 31, 2016, 2015 and 2014, are as follows: (in millions, except percentage) Years Ended December 31, 2016 2015 2014 US$ % US$ % US$ % Distributor A, located in PRC 179.6 14.9 % 192.0 19.2 % 176.6 15.9 % Distributor B, located in PRC 149.4 12.4 % 155.3 15.5 % 136.4 12.3 % Distributor C, located in PRC 127.0 10.6 % 127.3 12.7 % 138.5 12.5 % Distributor D, located in PRC 114.5 9.5 % 106.5 10.7 % 98.0 8.8 % Distributor E, located in PRC 108.9 9.1 % 81.8 8.2 % 139.8 12.6 % Distributor F, located in PRC 55.9 4.7 % 112.1 11.2 % 134.0 12.1 % Direct Customer G, located in the ROK 110.2 9.2 % 71.6 7.2 % 140.1 12.6 % Total 845.5 70.4 % 846.6 84.7 % 963.4 86.7 % |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents, restricted cash, time deposits and other non-current assets mentioned below maintained at banks consist of the following: December 31, 2016 December 31, 2015 US$ US$ RMB denominated bank deposits with: Financial Institutions in the PRC 464,427,328 417,430,412 Financial Institutions in Hong Kong Special Administrative Region ("Hong Kong SAR") 7,946 13,778 Financial Institution in Dubai, United Arab Emirates ("UAE") - 3,023 U.S. dollar denominated bank deposits with: Financial Institution in the U.S. 20,192 226,010 Financial Institutions in the PRC 18,025 17,109 Financial Institution in Hong Kong SAR 1,629,199 63,854 Financial Institution in Macau Special Administrative Region ("Macau SAR") 1,810 37,120 Financial Institution in Dubai, UAE 139,201 7,474,960 Euro denominated bank deposits with: Financial institution in Dubai, UAE - 3,011 HK dollar denominated bank deposits with: Financial institution in Hong Kong SAR 148 336 Dirham denominated bank deposits with: Financial institution in Dubai, UAE 53,647 37,278 |
Summary of significant accoun35
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are initially recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property, plant and equipment are as follows: Estimated Useful Life Workshops and buildings 39 years Machinery, equipment and furniture 5-10 years Motor vehicles 5 years |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: December 31, 2016 2015 US$ US$ Accounts receivable 410,087,666 234,583,370 Allowance for doubtful accounts (38,107 ) (40,631 ) Accounts receivable, net 410,049,559 234,542,739 |
Schedule of Aging of Accounts Receivable | The following table provides an analysis of the aging of accounts receivable as of December 31, 2016 and 2015: December 31, 2016 December 31, 2015 US$ US$ Aging: – current 373,108,359 234,396,244 – 1-3 months past due 36,941,200 146,495 – 4-6 months past due - - – 7-12 months past due - - – greater than one year past due 38,107 40,631 Total accounts receivable 410,087,666 234,583,370 |
Schedule of Movements in Allowance for Doubtful Accounts | The movements of the allowance for doubtful accounts are as follows: Year ended December 31, 2016 2015 US$ US$ Balance at the beginning of the year (40,631 ) (109,912 ) Reversal of bad debt allowance - 69,281 Effect of foreign currency exchange rate changes 2,524 - Balance at the end of the year (38,107 ) (40,631 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2016 2015 US$ US$ Raw materials 270,605,823 287,995,933 Work in progress 157,953 164,034 Finished goods 10,175,232 6,505,228 Total inventories 280,939,008 294,665,195 |
Prepaid expenses and other cu38
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expense and Other Assets Current | Prepaid expenses and other current assets consist of the following: December 31, 2016 2015 US$ US$ Receivables from Hailezi (i) 88,286,651 - Receivables from Jiamu (ii) 20,628,987 - Value added taxes receivables (iii) 4,814,920 698,286 Advances to suppliers 3,365,930 68,354 Receivables due from a customer in the ROK - 9,471,222 Interest receivable (iv) 3,231,763 3,306,974 Others (v) 4,982,058 2,131,012 Total prepaid expenses and other current assets 125,310,309 15,675,848 (i) In September 2016, the Company's two subsidiaries, HLJ Xinda Group and Sichuan Xinda each entered into equipment purchase contracts with Harbin Hailezi Science and Technology Co., Ltd. ("Hailezi") to purchase production equipment, testing equipment and storage facility. Pursuant to the contracts with Hailezi, HLJ Xinda Group and Sichuan Xinda have prepaid RMB349.1 million (equivalent to US$50.3 million) and RMB263.4 million (equivalent to US$38.0 million) as of December 31, 2016, respectively, which was recognized in investing activities in the statements of cash flow. In November, 2016, the three parties agreed to terminate the contracts and Hailezi agreed to refund all the prepayment. As of March 13, 2017, Hailezi has refunded to HLJ Xinda Group and Sichuan Xinda RMB347.1 million (equivalent to US$50.0 million) and RMB257.4 million (equivalent to US$37.1 million), respectively. (ii) Sichuan Xinda prepaid RMB143.1 million (equivalent to US$20.6 million) to purchase equipment from Harbin Jiamu Import and Export Co., Ltd. in November 2016, which was recognized in operating activities in the statements of cash flow . As Harbin Jiamu Import and Export Co., Ltd. had cancelled its registration and transferred its business to Harbin Jiamu Science and Technology Co.,Ltd., Harbin Jiamu Import and Export Co., Ltd. agreed to refund the prepayment. As of February 14, 2017, Harbin Jiamu Import and Export Co., Ltd. has refunded all the prepayment. The majority owner of Hailezi is also the majority owner of Harbin Jiamu Import and Export Co., Ltd and Harbin Jiamu Science (iii) Value added taxes receivables mainly represent the input taxes on purchasing equipment by Sichuan Xinda, which are to be net off with output taxes. Value added taxes receivables was recognized in operating activities in consolidated statements of cash flows. (iv) Interest receivable mainly represents interest income accrued from time deposits and restricted cash. (v) Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee |
Property, plant and equipment39
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: December 31, 2016 2015 US$ US$ Machinery, equipment and furniture 391,149,907 258,173,175 Motor vehicles 2,640,477 2,009,440 Workshops and buildings 119,503,091 76,924,199 Construction in progress 409,257,584 323,955,531 Total property, plant and equipment 922,551,059 661,062,345 Less: accumulated depreciation (116,187,367 ) (89,315,838 ) Property, plant and equipment, net 806,363,692 571,746,507 |
Schedule of the Allocation of Depreciation Expense on Property, Plant and Equipment | Depreciation expense on property, plant and equipment was allocated to the following expense items: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Cost of revenues 28,245,742 21,980,993 19,407,668 General and administrative expenses 1,808,284 1,531,389 1,155,419 Research and development expenses 3,720,126 3,615,758 2,094,496 Selling expenses 2,683 894 Total depreciation expense 33,776,835 27,129,034 22,657,583 |
Prepayments to equipment and 40
Prepayments to equipment and construction suppliers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepayments to equipment and construction suppliers [Abstract] | |
Schedule of Total Prepayments to Equipment and Construction Suppliers | December 31, 2016 December 31, 2015 US$ US$ Samim Group FZE (i) 5,308,737 - Beijin Construction (ii) 4,324,636 - Sports City (iii) 2,859,952 Sichuan Construction 907,024 Peaceful (iv) - 170,009,200 Jiamu (v) - 11,712,843 Others (vi) 767,353 1,503,963 Total Prepayments to equipment and construction suppliers 14,167,702 183,226,006 (i) On September 21, 2016, Samim Group FZE pertaining approximately 22,324 square meters property in JAFZA in Dubai, UAE with constructed building including a warehouse, office and service block for a total consideration of AED55.3 million (equivalent to US$15.0 million). As of December 31, 2016, the Company has prepaid AED19.5 million (equivalent to US$5.3 million), which was recognized in investing activities in the statements of cash flow. (ii) On November 15, 2016, Sichuan Xinda entered into decoration contract with Sichuan Beijin Construction Engineering Company Limited ("Beijin Construction") to perform indoor and outdoor decoration work for a consideration of RMB237.6 million (equivalent to US$34.3 million). Pursuant to the contracts with Beijin Construction, Sichuan Xinda have prepaid RMB30.0 million (equivalent to US$4.3 million) as of December 31, 2016 ), which was recognized in investing activities in the statements of cash flow. (iii) In September, 2016, Dubai Xinda entered into apartments purchase contracts with Dubai Sports City LLC ("Sports City") for a total consideration of AED14.0 million (equivalent to US$3.8 million). The prepayment to Sports City in the amount of AED10.6 million (equivalent to US$2.9 million) ), which was recognized in investing activities in the statements of cash flow (iv) In December 2013, the Company entered into an equipment purchase contract with Harbin Jiamu Import & Export Trading Co., Ltd ("Jiamu Trading") for a total consideration of RMB1,629.3 million to purchase 70 production lines and RMB89.7 million to purchase testing equipment. In August 2015, the Company signed a supplemental contract with Harbin Jiamu Science and Technology Co., Ltd. (together with Jiamu Trading as "Jiamu") to purchase testing equipment in the amount of RMB16.3 million (equivalent to US$2.5 million). As of December 31, 2015 and 2014, the Company has paid RMB1,608.2 million (equivalent to US$247.2 million) and RMB1,130.9 million (equivalent to US$182.3 million) for production lines and testing equipment, respectively. As of December 31, 2015, the Company has received the equipment of 70 production lines, and hence recorded the related amount from prepayments to construction in progress. The balance of Jiamu as of December 31, 2015 mainly represents the prepayment for testing equipment. (v) On January 5, 2015, AL Composites Materials FZE ("AL Composites") entered into an equipment purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of US$271.2 million to purchase certain production and testing equipment. Pursuant to the contract with Peaceful, the Company has paid US$170.0 million as prepayments as of December 31, 2015. (vi) Others mainly include prepayments for Sichuan construction program to several third parties. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Loans | December 31, 2016 2015 US$ US$ Unsecured loans 273,147,455 64,555,795 Loans secured by accounts receivable 50,454,086 43,037,196 Loans secured by restricted cash 32,474,300 27,100,000 Current portion of long-term bank loans (note b) 88,681,635 149,646,098 Total short-term loans, including current portion of long-term bank loans 444,757,476 284,339,089 |
Schedule of Long-Term Debt | December 31, 2016 2015 US$ US$ Secured loans 90,170,000 81,164,800 Unsecured loans 73,518,812 175,963,007 Syndicate loan facility 174,513,438 - Less: current portion 88,681,635 149,646,098 Total long-term bank loans, excluding current portion 249,520,615 107,481,709 |
Maturities on long-term bank loans | Maturities on long-term bank loans (including current portion) are as follows: December 31, 2016 US$ 2017 88,681,635 2018 196,183,438 2019 - 2020 53,337,177 after 2020 - Total 338,202,250 |
Accrued expenses and other cu42
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: December 31, 2016 2015 US$ US$ Payables for purchase of property, plant and equipment 98,472,641 42,524,903 Accrued freight expenses 7,972,067 1,579,936 Accrued interest expenses 885,290 7,800,481 Advance from customers 93,066 82,009,002 Non income tax payables 4,499,161 4,353,730 Others (i) 7,417,141 2,720,660 Total accrued expenses and other current liabilities 119,339,366 140,988,712 (i) Others mainly represent accrued payroll and employee benefits, accrued audit and consulting fees, electricity fee and other accrued miscellaneous operating expenses. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Related Party Transactions | The significant related party transactions are summarized as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Costs and expenses resulting from transactions with related parties: Rental expenses for plant and office space 723,769 777,248 791,460 |
Schedule of Amounts Due From and To Related Parties | The related party balances are summarized as follows: December 31, 2016 2015 US$ US$ Amounts due from a related party: Prepaid rental expenses to Xinda High-Tech 229,624 244,836 2016 2015 US$ US$ Amounts due to a related party Rental payable to Mr Han's son 11,548 8,439 |
Schedule of Plant and Office Buildings in Harbin | The Company rents the following plant and office buildings in Harbin, Heilongjiang province from Xinda High-Tech: Premise Leased Area (M 2 Annual Rental Fee (US$) Period of Lease Office building 23,894 719,934 Between January 1, 2014 and December 31, 2018 The Company rents the following facilities in Harbin, Heilongjiang province from Mr. Han's son: Premise Leased Area (M 2 Annual Rental Fee (US$) Period of Lease Facility 200 6,026 Between August 17, 2014 and August 16, 2016 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income (loss) before income taxes are as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ US (3,221,934 ) (3,512,598 ) (4,957,190 ) BVI (31,424,331 ) (18,685,588 ) (16,070,146 ) Hong Kong SAR (5,447,344 ) (306,945 ) (973,523 ) Dubai 54,947,200 34,554,739 83,267,935 PRC, excluding Hong Kong SAR 104,181,978 89,920,646 77,775,570 Total income before income taxes 119,035,569 101,970,254 139,042,646 |
Schedule of Income Tax Expense (Benefit) | The Company's income tax expense (benefit) recognized in the consolidated statements of comprehensive income consists of the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Current income tax expense-PRC 19,715,649 20,618,211 20,089,436 Current income tax expense-US - - 195,598 Deferred income tax benefit-PRC (2,292,830 ) (2,380,236 ) (2,018,757 ) Total income tax expense 17,422,819 18,237,975 18,266,277 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate based on income tax expense and income before income taxes reported in the consolidated statements of comprehensive income differs from the PRC statutory income tax rate of 25% due to the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ PRC statutory income tax rate 25 % 25 % 25 % Increase (decrease) in effective income tax rate resulting from: Tax rate differential on HK entities not subject to PRC income tax 0.4 % - - Tax rate differential on BVI entities not subject to PRC income tax 6.6 % 4.6 % 2.9 % Tax rate differential on UAE entities not subject to PRC income tax (11.5 )% (8.5 )% (15.0 )% Non-deductible expenses 0.3 % 0.4 % 0.6 % Preferential tax rate (4.2 )% (4.5 )% (3.3 )% Change in valuation allowance 2.3 % 1.2 % 0.5 % R&D additional deduction (5.1 )% (2.6 )% 0.0 % Others 0.8 % 2.3 % 2.4 % Effective income tax rate 14.6 % 17.9 % 13.1 % |
Schedule of the Principal Components of Deferred Income Tax Assets and Deferred Income Tax Liabilities | The principal components of the Company's deferred income tax assets and deferred income tax liabilities are as follows: December 31, 2016 2015 US$ US$ Deferred income tax assets: Tax loss carry forwards 3,951,012 1,941,124 Less: valuation allowance (3,951,012 ) (1,941,124 ) Deferred income tax assets, net - - Deferred income tax liabilities: Property, plant and equipment 10,818,305 13,874,224 Total deferred income tax liabilities (included in other non-current liabilities) 10,818,305 13,874,224 |
Schedule of Deferred Tax Asset Valuation Allowance | The movements of the valuation allowance are as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Balance at the beginning of the year 1,941,124 727,711 73,182 Expiration due to liquidation (661,144 ) (68,070 ) - Additions of valuation allowance 2,801,055 1,333,527 662,151 Reduction of valuation allowance (130,023 ) (52,044 ) (7,622 ) Balance at the end of the year 3,951,012 1,941,124 727,711 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Year ended December 31, 2016 2015 2014 US$ US$ US$ Balance at beginning of year 21,660,307 14,609,258 8,807,490 Increase related to current year tax positions 4,268,805 7,051,049 5,801,768 Balance at end of year 25,929,112 21,660,307 14,609,258 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of other non-current liabilities | 2016 2015 US$ US$ Income tax payable-noncurrent (i) 31,602,314 24,172,693 Deferred income tax liabilities (note 12) 10,818,305 13,874,224 Total other non-current liabilities 42,420,619 38,046,917 (i) Income tax payable-noncurrent represents the accumulative balance of unrecognized tax benefits and related accrued interest. |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Changes in Fair Value of Warrants | The changes in the fair value of warrants during the years presented is as follow: Series A investor warrants Series A placement agent warrants Series C placement agent warrants Total US$ US$ US$ US$ As of December 31, 2013 1,004,910 58,491 - 1,063,401 Change in fair value 1,929,565 (58,491 ) - 1,871,074 ) Exercise of warrants (2,934,475 ) - - (2,934,475 ) As of December 31, 2014 - - - - |
Stock based compensation (Table
Stock based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Stock Options Activity | A summary of the nonvested shares activity for the years ended December 31, 2016, 2015, and 2014 is as follows: Number of Nonvested Shares Weighted Average Grant date Fair Value US$ Outstanding as of December 31, 2013 1,090,575 4.89 Granted 291,948 5.13 Vested (674,205 ) 4.58 Forfeited (61,030 ) 4.47 Outstanding as of December 31, 2014 647,288 5.00 Granted 203,207 6.00 Vested (171,488 ) 4.40 Forfeited (64,280 ) 4.65 Outstanding as of December 31, 2015 614,727 5.54 Granted - - Vested (161,257 ) 4.24 Forfeited (51,260 ) 5.28 Outstanding as of December 31, 2016 402,210 6.10 Expected to vest as of December 31, 2016 325,467 6.10 |
Schedule of Nonvested Share Activity | A summary of stock options activity for the years ended December 31, 2016, 2015 and 2014 is as follows. Number of Options Outstanding Weighted Average Exercise Price US$ Outstanding as of December 31, 2014 - - Granted 72,000 0.24 Outstanding as of December 31, 2015 72,000 0.24 Vested (27,000 ) 0.24 Forfeited (45,000 ) 0.24 Outstanding as of December 31, 2016 - - |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per common stock: | |
Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Numerator: Net income 101,612,750 83,732,279 120,776,369 Less: Earnings allocated to participating Series D convertible preferred stock (24,652,636 ) (20,350,826 ) (29,552,623 ) Earnings allocated to participating nonvested shares (817,078 ) (770,145 ) (1,026,493 ) Net income for basic and diluted earnings per share 76,143,036 62,611,308 90,197,253 Denominator: Denominator for basic earnings per share 49,418,188 49,225,566 48,833,434 Dilutive effect of outstanding share options 1,009 3,894 - Denominator for diluted earnings per share 49,419,197 49,229,460 48,833,434 Earnings per common share: Basic and diluted earnings per common share 1.54 1.27 1.85 |
Summary of Potentially Dilutive Securities | The following table summarizes potentially dilutive securities excluded from the calculation of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, because their effects are anti-dilutive: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Numerator: Shares issuable upon conversion of Series D convertible preferred stocks 16,000,000 16,000,000 16,000,000 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | Future minimum lease payments under non-cancellable operating leases agreements as of December 31, 2016 were as follows. The Company's leases do not contain any contingent rent payments terms. US$ Years ending December 31, 2017 1,402,571 2018 914,750 2019 113,623 2020 113,623 2021 113,623 2022 and thereafter 908,981 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Revenues [Abstract] | |
Revenues | Revenues consist of the following: Years Ended December 31, 2016 2015 2014 US$ US$ US$ Modified Polyamide 66 (PA66) 260,107,405 219,082,301 192,374,156 Modified Polyamide 6 (PA6) 280,070,036 203,485,029 223,122,191 Plastic Alloy 401,664,431 350,620,202 400,306,257 Modified Polypropylene (PP) 178,729,819 164,828,880 232,421,229 Modified Acrylonitrile butadiene styrene (ABS) 42,121,680 40,510,344 36,804,599 Polyoxymethylenes (POM) 13,370,532 3,481,072 3,606,000 Polyphenylene Oxide (PPO) 15,315,570 12,984,368 14,830,647 Polylactide (PLA) 2,591,856 5,661 13,952 Raw materials 2,409,070 3,373,854 7,206,661 Others 5,298,499 821,183 - Total Revenue 1,201,678,898 999,192,894 1,110,685,692 |
Selected Quarterly Financial 51
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of the Company's quarterly financial information | The following tables show a summary of the Company's quarterly financial information for each of the four quarters of 2016 and 2015 (in millions, except gross margin and per share amounts): Fourth Quarter Third Quarter Second Quarter First Quarter 2016: Revenues $ 377.8 $ 331.8 $ 277.1 $ 215.0 Gross profit $ 82.3 $ 69.6 $ 60.3 $ 34.8 Net income $ 36.7 $ 20.2 $ 33.3 $ 11.4 Earnings per share Basic $ 0.56 $ 0.31 $ 0.51 $ 0.17 Diluted $ 0.56 $ 0.31 $ 0.51 $ 0.17 Fourth Quarter Third Quarter Second Quarter First Quarter 2015: Revenues $ 272.8 $ 239.1 $ 265.4 $ 221.9 Gross profit $ 52.0 $ 29.3 $ 51.5 $ 48.6 Net income $ 26.8 $ 6.0 $ 25.5 $ 25.4 Earnings per share Basic and diluted $ 0.41 $ 0.09 $ 0.39 $ 0.39 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of revenues from geographic areas | The following summarizes the Company's revenues from the following geographic areas (based on the location of the operating units): Years Ended December 31, 2016 2015 2014 US$ US$ US$ Revenues (in US$ millions) PRC 1,091.5 927.6 970.5 Dubai, UAE 110.2 71.6 140.1 Total 1,201.7 999.2 1,110.6 |
Summary of Company's Long-lived assets | The following summarizes the Company's Long-lived assets (including Property, plant and equipment, net, Years Ended December 31, 2016 2015 2014 US$ US$ US$ Long-lived assets (in US$ millions) PRC 483.7 544.6 451.4 Dubai, UAE 369.9 253.8 82.3 Total 853.6 798.4 533.7 |
Description of business and s53
Description of business and significant concentrations and risks (Sales and Purchase Concentration) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 377,800,000 | $ 331,800,000 | $ 277,100,000 | $ 215,000,000 | $ 272,800,000 | $ 239,100,000 | $ 265,400,000 | $ 221,900,000 | $ 1,201,678,898 | $ 999,192,894 | $ 1,110,685,692 |
Customer Concentration Risk [Member] | Revenue [Member] | Distributor A [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 179,600,000 | $ 192,000,000 | $ 176,600,000 | ||||||||
Concentration risk, percentage | 14.90% | 19.20% | 15.90% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Distributor B [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 149,400,000 | $ 155,300,000 | $ 136,400,000 | ||||||||
Concentration risk, percentage | 12.40% | 15.50% | 12.30% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Distributor C [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 127,000,000 | $ 127,300,000 | $ 138,500,000 | ||||||||
Concentration risk, percentage | 10.60% | 12.70% | 12.50% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Distributor D [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 114,500,000 | $ 106,500,000 | $ 98,000,000 | ||||||||
Concentration risk, percentage | 9.50% | 10.70% | 8.80% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Distributor E [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 108,900,000 | $ 81,800,000 | $ 139,800,000 | ||||||||
Concentration risk, percentage | 9.10% | 8.20% | 12.60% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Distributor F [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 55,900,000 | $ 112,100,000 | $ 134,000,000 | ||||||||
Concentration risk, percentage | 4.70% | 11.20% | 12.10% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Direct Customer G [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 110,200,000 | $ 71,600,000 | $ 140,100,000 | ||||||||
Concentration risk, percentage | 9.20% | 7.20% | 12.60% | ||||||||
Customer Concentration Risk [Member] | Revenue [Member] | Major Distributors Aggregate [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 845,500,000 | $ 846,600,000 | $ 963,400,000 | ||||||||
Concentration risk, percentage | 70.40% | 84.70% | 86.70% | ||||||||
Raw Material Supplier Concentration Risk [Member] | Purchase of Raw Materials [Member] | Majority Owner Of Equipment Distributor [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk, percentage | 0.00% | 0.00% | 0.40% | ||||||||
Raw Material Supplier Concentration Risk [Member] | Purchase of Raw Materials [Member] | Seven Major Raw Materials Distributors [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk, percentage | 80.00% | 80.00% | |||||||||
Raw Material Supplier Concentration Risk [Member] | Purchase of Raw Materials [Member] | Eight Major Raw Materials Distributors [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk, percentage | 88.30% | ||||||||||
Raw Material Supplier Concentration Risk [Member] | Purchase of Equipment [Member] | Two Major Equipment Distributors [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk, percentage | 91.00% | 99.80% | 99.60% | ||||||||
Raw Material Supplier Concentration Risk [Member] | Purchase of Equipment [Member] | One Major Equipment Distributor [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk, percentage | 0.00% | 84.80% | 1.90% |
Description of business and s54
Description of business and significant concentrations and risks (Cash Concentration) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash balance insured by the government authority | $ 1,207,996 | $ 1,493,509 |
RMB denominated bank deposits with financial Institutions in the PRC [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 464,427,328 | 417,430,412 |
Cash balance insured by the government authority | 500,000 | 500,000 |
RMB denominated bank deposits with Financial Institutions in Hong Kong Special Administrative Region ("Hong Kong SAR")[Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 7,946 | 13,778 |
RMB denominated bank deposits with Financial Institution in Dubai, United Arab Emirates ("UAE") [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 3,023 | |
U.S. dollar denominated bank deposits with a financial institution in the U.S. [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 20,192 | 226,010 |
U.S. dollar denominated bank deposits with financial institutions in the PRC [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 18,025 | 17,109 |
U.S. dollar denominated bank deposits with a financial institution in Hong Kong SAR [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 1,629,199 | 63,854 |
Cash balance insured by the government authority | 500,000 | 500,000 |
U.S. dollar denominated bank deposits with Financial Institution in Macau Special Administrative Region ("Macau SAR") [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 1,810 | 37,120 |
U.S. dollar denominated bank deposits with Financial Institution in Dubai, UAE [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 139,201 | 7,474,960 |
Euro denominated bank deposits with a financial institution in Dubai, UAE [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 3,011 | |
HK dollar denominated bank deposits with Financial institution in Hong Kong SAR [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 148 | 336 |
Dirham denominated bank deposits with Financial institution in Dubai, UAE [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash, cash equivalents, restricted cash and time deposits maintained at banks | 53,647 | 37,278 |
MOP dollar denominated bank deposits with Financial Institution in Macau SAR [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash balance insured by the government authority | $ 500,000 | $ 500,000 |
Summary of significant accoun55
Summary of significant accounting policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Land use right period | 50 years | |||
Amortization expense of land use rights | $ 468,007 | $ 411,178 | $ 259,310 | |
Recognized tax positions percent likely to be recognized | 50.00% | |||
Effective interest rate per annum of time deposits | 1.30% | 2.60% | ||
Restricted cash | $ 103,489,402 | $ 50,852,327 | $ 70,490,099 | |
Noncurrent restricted cash | $ 9,917,832 | 16,907,470 | ||
Employer contribution percentage | 40.00% | |||
Employer contributions | $ 3,878,202 | $ 1,788,552 | $ 1,555,471 | |
Percentage of costs of employee benefits recorded in general and administration expenses | 70.00% | 77.00% | 78.00% | |
Collateral For Long-Term Bank Borrowings [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 9,917,832 | $ 16,907,470 | ||
Collateral For Short- Term And Long-Term Bank Borrowings [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 69,816,345 | 32,010,452 | ||
Collateral For Bills Payable Related To Purchase Of Raw Materials [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 33,673,057 | $ 8,069,475 | ||
Minimum [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Time deposit maturity period | 6 months | |||
Maximum [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Time deposit maturity period | 12 months |
Summary of significant accoun56
Summary of significant accounting policies (Estimated Useful Life of Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Workshops and buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Machinery, equipment and furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery, equipment and furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Accounts receivable (Schedule o
Accounts receivable (Schedule of Accounts Receivable) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 410,087,666 | $ 234,583,370 |
Allowance for doubtful accounts | (38,107) | (40,631) |
Accounts receivable, net | 410,049,559 | 234,542,739 |
Notes receivable | 374,296 | 2,048,186 |
Accounts receivable pledged as collateral for short-term bank loans | $ 63,301,966 | $ 54,664,219 |
Accounts receivable (Schedule58
Accounts receivable (Schedule of Aging of Accounts Receivable) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Aging: | ||
current | $ 373,108,359 | $ 234,396,244 |
Total accounts receivable | 410,087,666 | 234,583,370 |
1-3 months past due [Member] | ||
Aging: | ||
Past due | 36,941,200 | 146,495 |
4-6 months past due [Member] | ||
Aging: | ||
Past due | ||
7-12 months past due [Member] | ||
Aging: | ||
Past due | ||
Greater than one year past due [Member] | ||
Aging: | ||
Past due | $ 38,107 | $ 40,631 |
Accounts receivable (Movements
Accounts receivable (Movements in Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable, Net [Abstract] | |||
Balance at the beginning of the year | $ (40,631) | $ (109,912) | |
Reversal of bad debt allowance | 69,281 | $ 35,849 | |
Effect of foreign currency exchange rate changes | 2,524 | ||
Balance at the end of the year | $ (38,107) | $ (40,631) | $ (109,912) |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw materials | $ 270,605,823 | $ 287,995,933 |
Work in progress | 157,953 | 164,034 |
Finished goods | 10,175,232 | 6,505,228 |
Total inventories | $ 280,939,008 | $ 294,665,195 |
Prepaid expenses and other cu61
Prepaid expenses and other current assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Receivables from Hailezi | [1] | $ 88,286,651 | |
Receivables from Jiamu | [2] | 20,628,987 | |
Value added taxes receivables | [3] | 4,814,920 | 698,286 |
Advances to suppliers | 3,365,930 | 68,354 | |
Receivables due from a customer in the ROK | 9,471,222 | ||
Interest receivable | [4] | 3,231,763 | 3,306,974 |
Others | [5] | 4,982,058 | 2,131,012 |
Total prepaid expenses and other current assets | $ 125,310,309 | $ 15,675,848 | |
[1] | In September 2016, the Company's two subsidiaries, HLJ Xinda Group and Sichuan Xinda each entered into equipment purchase contracts with Harbin Hailezi Science and Technology Co., Ltd. ("Hailezi") to purchase production equipment, testing equipment and storage facility. Pursuant to the contracts with Hailezi, HLJ Xinda Group and Sichuan Xinda have prepaid RMB263.4 million (equivalent to US$38.0 million) and RMB349.1 million (equivalent to US$50.3 million) as of December 31, 2016, respectively, which was recognized in investing activities in the statements of cash flow. In November, 2016, the three parties agreed to terminate the contracts and Hailezi agreed to refund all the prepayment. As of February 8, 2017, Hailezi has refunded all the prepayment. | ||
[2] | Sichuan Xinda prepaid RMB143.1 million (equivalent to US$20.6 million) to purchase equipment from Harbin Jiamu Import and Export Co., Ltd. in November 2016, which was recognized in operating activities in the statements of cash flow. As Harbin Jiamu Import and Export Co., Ltd. had cancelled its registration and transferred its business to Harbin Jiamu Science and Technology Co.,Ltd., Harbin Jiamu Import and Export Co., Ltd. agreed to refund the prepayment. As of February 14, 2017, Harbin Jiamu Import and Export Co., Ltd. has refunded all the prepayment. | ||
[3] | Value added taxes receivables mainly represent the input taxes on purchasing equipment by Sichuan Xinda, which are to be net off with output taxes. Value added taxes receivables was recognized in operating activities in consolidated statements of cash flows. | ||
[4] | Interest receivable mainly represents interest income accrued from time deposits and restricted cash. | ||
[5] | Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee. |
Prepaid expenses and other cu62
Prepaid expenses and other current assets (Narrative) (Details) ¥ in Millions | Mar. 13, 2017USD ($) | Mar. 13, 2017CNY (¥) | Nov. 30, 2016USD ($) | Nov. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Prepaid | $ 21,222,125 | $ (4,542,796) | $ (3,719,794) | |||||
Hailezi, HLJ Xinda Group [Member] | ||||||||
Prepaid | $ 50,300,000 | |||||||
Hailezi, HLJ Xinda Group [Member] | Subsequent Event [Member] | ||||||||
Refund of prepayment | $ 50,000,000 | |||||||
Hailezi, HLJ Xinda Group [Member] | RMB [Member] | ||||||||
Prepaid | 349,100,000 | |||||||
Hailezi, HLJ Xinda Group [Member] | RMB [Member] | Subsequent Event [Member] | ||||||||
Refund of prepayment | ¥ | ¥ 347.1 | |||||||
Sichuan Xinda [Member] | ||||||||
Prepaid | $ 20,600,000 | 38,000,000 | ||||||
Sichuan Xinda [Member] | Subsequent Event [Member] | ||||||||
Refund of prepayment | $ 37,100,000 | |||||||
Sichuan Xinda [Member] | RMB [Member] | ||||||||
Prepaid | ¥ 143.1 | $ 263,400,000 | ||||||
Sichuan Xinda [Member] | RMB [Member] | Subsequent Event [Member] | ||||||||
Refund of prepayment | ¥ | ¥ 257.4 |
Property, plant and equipment63
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 922,551,059 | $ 661,062,345 |
Less accumulated depreciation | (116,187,367) | (89,315,838) |
Property, plant and equipment, net | 806,363,692 | 571,746,507 |
Machinery, equipment and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 391,149,907 | 258,173,175 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,640,477 | 2,009,440 |
Workshops and buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 119,503,091 | 76,924,199 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 409,257,584 | $ 323,955,531 |
Property, plant and equipment64
Property, plant and equipment, net (Allocated Depreciation Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 33,776,835 | $ 27,129,034 | $ 22,657,583 |
Interest costs capitalized as a component of the cost of construction in progress | 2,562,026 | 231,356 | 113,317 |
Cost of revenues [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | 28,245,742 | 21,980,993 | 19,407,668 |
General and administrative expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | 1,808,284 | 1,531,389 | 1,155,419 |
Research and development expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | 3,720,126 | 3,615,758 | 2,094,496 |
Selling expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 2,683 | $ 894 |
Prepayments to equipment and 65
Prepayments to equipment and construction suppliers (Schedule of Total Prepayments to Equipment and Construction Suppliers) (Details) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | $ 14,167,702 | $ 183,226,006 | |
Samim Group FZE [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [1] | 5,308,737 | |
Beijin Construction [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [2] | 4,324,636 | |
Dubai Sports City LLC ("Sports City") [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [3] | 2,859,952 | |
Sichuan Construction [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | 907,024 | ||
Peaceful [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [4] | 170,009,200 | |
Jiamu [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [5] | 11,712,843 | |
Others [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total Prepayments to equipment and construction suppliers | [6] | $ 767,353 | $ 1,503,963 |
[1] | On September 21, 2016, Dubai Xinda entered into a purchase contract with Samim Group FZE pertaining approximately 22,324 square meters property in JAFZA in Dubai, UAE with constructed building including a warehouse, office and service block for a total consideration of AED55.3 million (equivalent to US$15.0 million). As of December 31, 2016, the Company has prepaid AED19.5 million (equivalent to US$5.3 million), which was recognized in investing activities in the statements of cash flow. | ||
[2] | On November 15, 2016, Sichuan Xinda entered into decoration contract with Sichuan Beijin Construction Enginnering Company Limited ("Beijin Construction") to perform indoor and outdoor decoration work for a consideration of RMB237.6 million (equivalent to US$34.3 million). Pursuant to the contracts with Beijin Construction, Sichuan Xinda have prepaid RMB30.0 million (equivalent to US$4.3 million) as of December 31, 2016), which was recognized in investing activities in the statements of cash flow. | ||
[3] | In September, 2016, Dubai Xinda entered into apartments purchase contracts with Dubai Sports City LLC ("Sports City") for a total consideration of AED14.0 million (equivalent to US$3.8 million).The prepayment to Sports City in the amount of AED10.6 million (equivalent to US$2.9 million) was to purchase the apartments for employees living), which was recognized in investing activities in the statements of cash flow.' | ||
[4] | In December 2013, the Company entered into an equipment purchase contract with Harbin Jiamu Import & Export Trading Co., Ltd ("Jiamu Trading") for a total consideration of RMB1,629.3 million to purchase 70 production lines and RMB89.7 million to purchase testing equipment. In August 2015, the Company signed a supplemental contract with Harbin Jiamu Science and Technology Co., Ltd. (together with Jiamu Trading as "Jiamu") to purchase testing equipment in the amount of RMB16.3 million (equivalent to US$2.5 million). As of December 31, 2015 and 2014, the Company has paid RMB1,608.2 million (equivalent to US$247.2 million) and RMB1,130.9 million (equivalent to US$182.3 million) for production lines and testing equipment, respectively. As of December 31, 2015, the Company has received the equipment of 70 production lines, and hence recorded the related amount from prepayments to construction in progress. The balance of Jiamu as of December 31, 2015 mainly represents the prepayment for testing equipment. | ||
[5] | On January 5, 2015, AL Composites Materials FZE ("AL Composites") entered into an equipment purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of US$271.2 million to purchase certain production and testing equipment. Pursuant to the contract with Peaceful, the Company has paid US$170.0 million as prepayments as of December 31, 2015. | ||
[6] | Others mainly include prepayments for Sichuan construction program to several third parties. |
Prepayments to equipment and 66
Prepayments to equipment and construction suppliers (Narrative) (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Nov. 15, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 21, 2016USD ($)m² | Jan. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013CNY (¥)item | Dec. 31, 2015USD ($)item | Dec. 31, 2015CNY (¥)item | ||
Long-term Purchase Commitment [Line Items] | |||||||||
Prepayments to equipment and construction suppliers | $ 14,167,702 | $ 183,226,006 | |||||||
Number of product line received under purchases contract | item | 70 | 70 | |||||||
Peaceful [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Prepayments to equipment and construction suppliers | [1] | $ 170,009,200 | |||||||
Jiamu [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Prepayments to equipment and construction suppliers | [2] | $ 11,712,843 | |||||||
Warehouse Construction Contract [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of product line purchases under contract | m² | 22,324 | ||||||||
Commitments | $ 15,000,000 | 5,300,000 | |||||||
Equipment [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of product line purchases under contract | item | 70 | ||||||||
Equipment [Member] | Harbin Jiamu Import Export Trading Co Ltd [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | ¥ | ¥ 1,629.3 | ||||||||
Equipment [Member] | Peaceful [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 271,200,000 | ||||||||
Prepayments to equipment and construction suppliers | $ 170,000,000 | ||||||||
Equipment [Member] | Jiamu [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Prepayments to equipment and construction suppliers | ¥ | ¥ 1,608.2 | ||||||||
Testing Equipment [Member] | Harbin Jiamu Science and Technology Co Ltd [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | ¥ | ¥ 89.7 | ||||||||
RMB [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 55,300,000 | 19,500,000 | |||||||
Dubai Sports City LLC [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 3,800,000 | ||||||||
Dubai Sports City LLC [Member] | RMB [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 14,000,000 | ||||||||
Sichuan Beijin Construction Enginnering [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 34,300,000 | 4,300,000 | |||||||
Sichuan Beijin Construction Enginnering [Member] | RMB [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Commitments | $ 237,600,000 | $ 30,000,000 | |||||||
[1] | In December 2013, the Company entered into an equipment purchase contract with Harbin Jiamu Import & Export Trading Co., Ltd ("Jiamu Trading") for a total consideration of RMB1,629.3 million to purchase 70 production lines and RMB89.7 million to purchase testing equipment. In August 2015, the Company signed a supplemental contract with Harbin Jiamu Science and Technology Co., Ltd. (together with Jiamu Trading as "Jiamu") to purchase testing equipment in the amount of RMB16.3 million (equivalent to US$2.5 million). As of December 31, 2015 and 2014, the Company has paid RMB1,608.2 million (equivalent to US$247.2 million) and RMB1,130.9 million (equivalent to US$182.3 million) for production lines and testing equipment, respectively. As of December 31, 2015, the Company has received the equipment of 70 production lines, and hence recorded the related amount from prepayments to construction in progress. The balance of Jiamu as of December 31, 2015 mainly represents the prepayment for testing equipment. | ||||||||
[2] | On January 5, 2015, AL Composites Materials FZE ("AL Composites") entered into an equipment purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of US$271.2 million to purchase certain production and testing equipment. Pursuant to the contract with Peaceful, the Company has paid US$170.0 million as prepayments as of December 31, 2015. |
Borrowings (Schedule of Short-T
Borrowings (Schedule of Short-Term Loans, Including Current Portion of Long-Term Bank Loans) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Total short-term loans, including current portion of long-term bank loans | $ 444,757,476 | $ 284,339,089 |
Unsecured loans [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loans, including current portion of long-term bank loans | 273,147,455 | 64,555,795 |
Loans secured by accounts receivable [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loans, including current portion of long-term bank loans | 50,454,086 | 43,037,196 |
Loans secured by restricted cash [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loans, including current portion of long-term bank loans | 32,474,300 | 27,100,000 |
Current portion of long-term bank loans [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loans, including current portion of long-term bank loans | $ 88,681,635 | $ 149,646,098 |
Borrowings (Current) (Narrative
Borrowings (Current) (Narrative) (Details) $ in Thousands | Oct. 07, 2016USD ($) | Aug. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($)item | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||||||
Weighted average interest rate | 4.00% | 4.20% | ||||
Debt instrument, term of loan | 1 year | |||||
One Month London Interbank Offered Rate One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt instrument, interest rate | 0.7717% | |||||
One Month London Interbank Offered Rate [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt instrument, interest rate | 0.7717% | |||||
One Year Secured Loan One [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt instrument, issuance date | Oct. 7, 2016 | Aug. 31, 2016 | Jan. 31, 2016 | |||
Debt instrument, term of loan | 1 year | 3 months | 1 year | |||
Aggregated principal amount | $ 20 | $ 139 | ||||
Debt instrument, issuer | Bank of China in Harbin, China | Industrial and Commercial Bank of China in Harbin, China | HSBC Bank in Harbin, China | |||
Debt instrument, interest rate | 1.80% | 0.9979% | ||||
Variable rate spread | 2.00% | 1.80% | ||||
Debt instrument, collateral amount | $ 150 | $ 146 | ||||
Number of debt instruments obtained | item | 1 | |||||
Six-month secured loans [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt instrument, issuance date | Jan. 31, 2016 | |||||
Debt instrument, term of loan | 1 year | |||||
Aggregated principal amount | $ 505 | |||||
Debt instrument, issuer | Harbin Longjiang Bank | |||||
Debt instrument, interest rate | 4.35% | |||||
Loan by accounts receivables | $ 633 | |||||
HSBC Bank in Harbin China One [Member] | Secured Loans by Restricted Cash [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregated principal amount | $ 37 | |||||
Debt instrument, collateral amount | 255 | |||||
HSBC Bank in Harbin China[Member] | Secured Loans by Restricted Cash [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregated principal amount | 26 | |||||
Debt instrument, collateral amount | $ 178 | |||||
One Year Secured Loan [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt instrument, issuance date | Jan. 31, 2016 | |||||
Debt instrument, term of loan | 1 year | |||||
Aggregated principal amount | $ 12 | |||||
Debt instrument, issuer | HSBC Bank in Harbin, China | |||||
Variable rate spread | 1.80% | |||||
Number of debt instruments obtained | item | 1 |
Borrowings (Schedule of Long-Te
Borrowings (Schedule of Long-Term Bank Loans Excluding Current Portion) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | $ 249,520,615 | $ 107,481,709 |
Secured loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | 90,170,000 | 81,164,800 |
Unsecured loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | 73,518,812 | 175,963,007 |
Syndicate loan facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | 174,513,438 | |
Current Portion [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | $ 88,681,635 | $ 149,646,098 |
Borrowings (Non-current) (Narra
Borrowings (Non-current) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Aug. 22, 2018 | May 22, 2018 | Feb. 22, 2018 | Nov. 22, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 09, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||||||||
Initial term of loan | 1 year | ||||||||
Total lines of credit | $ 1,130,200,000 | ||||||||
Unused lines of credit | 529,800,000 | ||||||||
Remaining line of credit | 52,600,000 | ||||||||
Remaining loan amount due on June 9, 2017 | $ 196,183,438 | ||||||||
Restricted cash to secure loans | $ 103,489,402 | $ 50,852,327 | $ 70,490,099 | ||||||
Consortium of banks and financial institutions led by Standard Chartered Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Standard Chartered Bank (Hong Kong) Limited | ||||||||
Initial term of loan | 2 years | ||||||||
Aggregated principal amount | $ 180,000,000 | ||||||||
Debt instrument, issuance date | Aug. 22, 2016 | ||||||||
Debt instrument, interest rate | 5.594% | ||||||||
Spread over variable rate | 2.60% | ||||||||
Variable rate basis | one-month LIBOR | ||||||||
Legal fees | $ 6,770,000 | ||||||||
Consortium of banks and financial institutions led by Standard Chartered Bank [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | $ 90,000,000 | $ 45,000,000 | $ 22,500,000 | $ 22,500,000 | |||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, maturity date | Feb. 4, 2019 | ||||||||
Two Two-Year Secured Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | China Construction Bank | ||||||||
Initial term of loan | 2 years | ||||||||
Aggregated principal amount | $ 14,300,000 | ||||||||
Debt instrument, issuance date | May 13, 2016 | ||||||||
Debt instrument, maturity date | Mar. 22, 2018 | ||||||||
Debt instrument, interest rate | 0.9979% | ||||||||
Spread over variable rate | 1.60% | ||||||||
Variable rate basis | three-month LIBOR | ||||||||
Three Year Secured Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Bank of China Paris Branch | ||||||||
Initial term of loan | 3 years | ||||||||
Aggregated principal amount | $ 70,000,000 | ||||||||
Debt instrument, issuance date | Jun. 12, 2014 | ||||||||
Debt instrument, interest rate | 0.9979% | ||||||||
Variable rate basis | three-month LIBOR | ||||||||
Security Deposit | $ 15,900,000 | ||||||||
Repayment of long-term debt | $ 5,000,000 | $ 4,000,000 | |||||||
Remaining loan amount due on December 9, 2016 | 15,000,000 | ||||||||
Remaining loan amount due on June 9, 2017 | 46,000,000 | ||||||||
Restricted cash to secure loans | $ 15,700,000 | ||||||||
Two Two-Year Secured Loans Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | China Construction Bank | ||||||||
Aggregated principal amount | $ 3,800,000 | ||||||||
Debt instrument, issuance date | May 22, 2016 | ||||||||
Debt instrument, maturity date | Mar. 22, 2018 | ||||||||
Debt instrument, interest rate | 0.9979% | ||||||||
Spread over variable rate | 1.60% | ||||||||
Variable rate basis | three-month LIBOR | ||||||||
Restricted cash to secure loans | $ 9,900,000 | ||||||||
One Two Year Unsecured Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Agriculture Bank of China | ||||||||
Aggregated principal amount | $ 6,000,000 | ||||||||
Debt instrument, issuance date | Apr. 22, 2015 | ||||||||
Debt instrument, maturity date | Apr. 20, 2017 | ||||||||
Debt instrument, interest rate | 5.75% | ||||||||
Two Year Unsecured Loan Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Agriculture Bank of China | ||||||||
Initial term of loan | 2 years | ||||||||
Aggregated principal amount | $ 14,400,000 | ||||||||
Debt instrument, issuance date | Jan. 23, 2015 | ||||||||
Debt instrument, maturity date | Jan. 31, 2017 | ||||||||
Debt instrument, interest rate | 6.00% | ||||||||
Two Year Unsecured Loan One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Bank of Communications | ||||||||
Initial term of loan | 2 years | ||||||||
Aggregated principal amount | $ 28,400,000 | ||||||||
Debt instrument, issuance date | Dec. 11, 2014 | ||||||||
Debt instrument, maturity date | Dec. 10, 2016 | ||||||||
Debt instrument, interest rate | 6.60% | ||||||||
One Four Year Unsecured Loans [Member] | Unsecured Debt from Bank of China [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Bank of China | ||||||||
Initial term of loan | 4 years | ||||||||
Aggregated principal amount | $ 4,300,000 | ||||||||
Debt instrument, issuance date | Jan. 1, 2016 | ||||||||
Debt instrument, maturity date | Oct. 28, 2020 | ||||||||
Debt instrument, interest rate | 4.75% | ||||||||
Two Two-Year Secured Loans One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | China Construction Bank | ||||||||
Initial term of loan | 2 years | ||||||||
Aggregated principal amount | $ 12,300,000 | ||||||||
Debt instrument, issuance date | May 17, 2016 | ||||||||
Debt instrument, maturity date | Mar. 22, 2018 | ||||||||
Debt instrument, interest rate | 0.9979% | ||||||||
Spread over variable rate | 1.60% | ||||||||
Variable rate basis | three-month LIBOR | ||||||||
Three Five Year Unsecured Loan [Member] | Unsecured Debt from Bank of China [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuer | Bank of China | ||||||||
Initial term of loan | 5 years | ||||||||
Aggregated principal amount | $ 37,500,000 | ||||||||
Debt instrument, issuance date | Oct. 1, 2015 | ||||||||
Debt instrument, maturity date | Oct. 28, 2020 | ||||||||
Debt instrument, interest rate | 4.75% | ||||||||
China, Yuan Renminbi [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total lines of credit | $ 7,547,400,000 | ||||||||
Unused lines of credit | 3,538,500,000 | ||||||||
Remaining line of credit | 351,400,000 | ||||||||
China, Yuan Renminbi [Member] | Three Year Secured Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Security Deposit | 110,000,000 | ||||||||
Restricted cash to secure loans | 109,000,000 | ||||||||
China, Yuan Renminbi [Member] | Two Two-Year Secured Loans Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Restricted cash to secure loans | 68,800,000 | ||||||||
China, Yuan Renminbi [Member] | One Two Year Unsecured Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated principal amount | 40,000,000 | ||||||||
China, Yuan Renminbi [Member] | Two Year Unsecured Loan Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated principal amount | 100,000,000 | ||||||||
China, Yuan Renminbi [Member] | Two Year Unsecured Loan One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated principal amount | 197,000,000 | ||||||||
China, Yuan Renminbi [Member] | One Four Year Unsecured Loans [Member] | Unsecured Debt from Bank of China [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated principal amount | 80,000,000 | ||||||||
China, Yuan Renminbi [Member] | Three Five Year Unsecured Loan [Member] | Unsecured Debt from Bank of China [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated principal amount | $ 260,000,000 |
Borrowings (Schedule of Maturit
Borrowings (Schedule of Maturities on Long-term Bank Loans Including Current Portion) (Details) | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 88,681,635 |
2,018 | 196,183,438 |
2,019 | |
2,020 | 53,337,177 |
after 2,020 | |
Total | $ 338,202,250 |
Redemption of the senior notes
Redemption of the senior notes (Narrative) (Details) - USD ($) | Feb. 04, 2014 | Aug. 29, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument, Redemption [Line Items] | ||||||
Loss on debt extinguishment | $ (18,963,834) | |||||
Senior Notes [Member] | ||||||
Debt Instrument, Redemption [Line Items] | ||||||
Maturity date | Feb. 4, 2019 | |||||
Accrued interest expenses | $ 122,395,800,000 | |||||
Repayments of senior notes | $ 16,660,635,300,000 | |||||
Percentage price of senior notes | 100.00% | |||||
Premium | $ 1,538,239,500,000 | |||||
Principal amount of senior notes | 15,000,000,000,000 | |||||
Carrying amount of senior notes | 14,762,612,100,000 | |||||
Loss on debt extinguishment | 1,896,383,400,000 | |||||
Accrued and unpaid interest | $ 119,408,100,000 | |||||
Guaranteed Senior Notes Due 2019 [Member] | ||||||
Debt Instrument, Redemption [Line Items] | ||||||
Maturity date | Feb. 4, 2019 | |||||
Issuance price percentage | 99.08% | |||||
Payment start date | Aug. 4, 2014 | |||||
Net proceeds from Guaranteed Senior Notes | $ 143,500,000 | |||||
Guaranteed Senior Note Due 2019 [Member] | ||||||
Debt Instrument, Redemption [Line Items] | ||||||
Principal amount of debt | $ 15,000,000,000,000 | |||||
Notes payable, interest rate | 11.75% |
Accrued expenses and other cu73
Accrued expenses and other current liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | |||
Payables for purchase of property, plant and equipment | $ 98,472,641 | $ 42,524,903 | |
Accrued freight expenses | 7,972,067 | 1,579,936 | |
Accrued interest expenses | 885,290 | 7,800,481 | |
Advance from customers | 93,066 | 82,009,002 | |
Non income tax payables | 4,499,161 | 4,353,730 | |
Others | [1] | 7,417,141 | 2,720,660 |
Accrued expenses and other current liabilities | $ 119,339,366 | $ 140,988,712 | |
[1] | Others mainly represent accrued payroll and employee benefits, accrued audit and consulting fees, electricity fee and other accrued miscellaneous operating expenses. |
Related party transactions (Sch
Related party transactions (Schedule of Significant Related Party Transactions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |||
Rental expenses for plant and office space | $ 723,769 | $ 777,248 | $ 791,460 |
Related party transactions (S75
Related party transactions (Schedule of Amounts Due From Related Parties) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Prepaid rental expenses to related party | $ 229,624 | $ 244,836 |
Rental payable to related party | 11,548 | 8,439 |
Xinda High-Tech [Member] | ||
Related Party Transaction [Line Items] | ||
Prepaid rental expenses to related party | 229,624 | 244,836 |
Mr. Han's son [Member] | ||
Related Party Transaction [Line Items] | ||
Rental payable to related party | $ 11,548 | $ 8,439 |
Related party transactions (S76
Related party transactions (Schedule of Plant and Office Buildings in Harbin) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)m² | |
Office Building One [Member] | Xinda High-Tech [Member] | |
Related Party Transaction [Line Items] | |
Annual Rental Fee | $ | $ 719,934 |
Area (Square Meters) | m² | 23,894 |
Lease start date | Jan. 1, 2014 |
Lease expiration period | Dec. 31, 2018 |
Facility [Member] | Mr. Han's son [Member] | |
Related Party Transaction [Line Items] | |
Annual Rental Fee | $ | $ 6,026 |
Area (Square Meters) | m² | 200 |
Lease start date | Aug. 17, 2014 |
Lease expiration period | Aug. 16, 2016 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred income tax liability in connection with the net assets granted to the Research Center | $ 1,081,830,500,000 | $ 1,387,422,400,000 | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% | ||
Tax Carryforward Group One [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | |||||
Tax loss carryforwards, expiration date | Dec. 31, 2034 | ||||
Tax Carryforward Group Two [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 15,356,500,000 | ||||
Tax loss carryforwards, expiration date | Dec. 31, 2035 | ||||
Tax Carryforward Group Three [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 52,061,700,000 | ||||
Tax loss carryforwards, expiration date | Dec. 31, 2036 | ||||
Tax Carryforward Group Four [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 27,068,600,000 | ||||
Tax loss carryforwards, expiration date | Dec. 31, 2019 | ||||
Tax Carryforward Group Five [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 342,341,000,000 | ||||
Tax loss carryforwards, expiration date | Dec. 31, 2020 | ||||
Tax Carryforward Group Six [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 690,093,300,000 | ||||
Tax loss carryforwards, expiration date | Dec. 31, 2021 | ||||
Dubai, UAE [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred income tax liabilities on undistributed earnings | $ 17,277,424,700,000 | 117,827,046 | |||
US [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred income tax liabilities on undistributed earnings | 54,643,037,800,000 | $ 488,303,847 | |||
Tax loss carryforwards | 67,376,300,000 | ||||
Hong Kong SAR [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 667,769,100,000 | ||||
PRC [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | $ 1,059,502,900,000 | ||||
Harbin Xinda Macromolecule Material Company Limited [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Registered capital | $ 500,000 | ||||
Deferred income tax liability in connection with the net assets granted to the Research Center | 21,500,000 | ||||
Research Institute [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Registered capital | $ 400,000 | ||||
Net assets distributed to the local government | 84,000,000 | ||||
Favor Sea US And Xinda US [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Statutory tax rate | 34.00% | ||||
Sichuan Xinda Group [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Statutory tax rate | 15.00% | ||||
Heilongjiang Xinda Enterprise Group Macromolecule Materials Limited [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Expenditures not deductible for income tax purposes | $ 84,000,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Income Taxes) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | $ 119,035,569 | $ 101,970,254 | $ 139,042,646 |
US [Member] | |||
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | (3,221,934) | (3,512,598) | (4,957,190) |
BVI [Member] | |||
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | (31,424,331) | (18,685,588) | (16,070,146) |
Hong Kong SAR [Member] | |||
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | (5,447,344) | (306,945) | (973,523) |
Dubai, UAE [Member] | |||
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | 54,947,200 | 34,554,739 | 83,267,935 |
PRC, excluding Hong Kong SAR [Member] | |||
Income (Loss) Before Income Taxes [Line Items] | |||
Total income before income taxes | $ 104,181,978 | $ 89,920,646 | $ 77,775,570 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense-PRC | $ 19,715,649 | $ 20,618,211 | $ 20,089,436 |
Current income tax expense-US | 195,598 | ||
Deferred income tax benefit-PRC | (2,292,830) | (2,380,236) | (2,018,757) |
Total income tax expense | $ 17,422,819 | $ 18,237,975 | $ 18,266,277 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective income tax rate based on income tax expense and income before income taxes [Line Items] | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Increase (decrease) in effective income tax rate resulting from: | |||
Non-deductible expenses | 0.30% | 0.40% | 0.60% |
Preferential tax rate | (4.20%) | (4.50%) | (3.30%) |
Change in valuation allowance | 2.30% | 1.20% | 0.50% |
R&D additional deduction | (5.10%) | (2.60%) | (0.00%) |
Others | 0.80% | 2.30% | 2.40% |
Effective income tax rate | 14.60% | 17.90% | 13.10% |
Hong Kong SAR [Member] | |||
Increase (decrease) in effective income tax rate resulting from: | |||
Tax rate differential on entities not subject to PRC income tax | 0.40% | ||
BVI [Member] | |||
Increase (decrease) in effective income tax rate resulting from: | |||
Tax rate differential on entities not subject to PRC income tax | 6.60% | 4.60% | 2.90% |
Dubai, UAE [Member] | |||
Increase (decrease) in effective income tax rate resulting from: | |||
Tax rate differential on entities not subject to PRC income tax | (11.50%) | (8.50%) | (15.00%) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred income tax assets: | ||||
Tax loss carry forwards | $ 3,951,012 | $ 1,941,124 | ||
Less: valuation allowance | (3,951,012) | (1,941,124) | $ (727,711) | $ (73,182) |
Deferred income tax assets, net | ||||
Deferred income tax liabilities: | ||||
Property, plant and equipment | 10,818,305 | 13,874,224 | ||
Total deferred income tax liabilities (included in other non-current liabilities) | $ 10,818,305 | $ 13,874,224 |
Income Taxes (Schedule of Def82
Income Taxes (Schedule of Deferred Tax Asset Valuation Allowance) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at the beginning of the year | $ 1,941,124 | $ 727,711 | $ 73,182 |
Expiration due to liquidation | (661,144) | (68,070) | |
Additions of valuation allowance | 2,801,055 | 1,333,527 | 662,151 |
Reduction of valuation allowance | (130,023) | (52,044) | (7,622) |
Balance at the end of the year | $ 3,951,012 | $ 1,941,124 | $ 727,711 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 21,660,307 | $ 14,609,258 | $ 8,807,490 |
Increase related to current year tax positions | 4,268,805 | 7,051,049 | 5,801,768 |
Balance at end of year | 25,929,112 | 21,660,307 | 14,609,258 |
Unrecognized tax benefits if recognized, would affect the effective tax rate | 21,547,559 | 18,370,729 | 12,544,088 |
Unrecognized tax benefits, interest expenses during period | 2,982,479 | 1,905,191 | 1,322,135 |
Unrecognized tax benefits, interest and penalty expenses accrued | 5,757,273 | 3,095,819 | $ 1,322,135 |
Income taxes payable | 25,845,041 | $ 21,076,874 | |
Reduction of the deferred income tax assets for tax loss carry forwards | $ 84,071 |
Deferred Income (Details)
Deferred Income (Details) ¥ in Millions, AED in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 26, 2015USD ($) | Jan. 26, 2015AED | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015AED | Dec. 31, 2014USD ($) | |
Deferred Revenue Arrangement [Line Items] | |||||||
Government grant related to construction in the form of repayment of bank loan on behalf of the Company by the government | $ 38,118,231 | ||||||
Government grant related to the construction of Sichuan plant in the form of restricted cash | 11,117,817 | ||||||
Fund Support Agreement With Shunqing Government | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Government grant, agreement amount | $ 50,500,000 | ||||||
Government grant related to construction in the form of repayment of bank loan on behalf of the Company by the government | 50,500,000 | AED 35 | |||||
Government grant related to the construction of Sichuan plant in the form of restricted cash | 16,100,000 | 111.6 | |||||
Government grant related to the construction of Sichuan plant | 200,000 | 1.3 | |||||
Government grant related to the development of additive manufacturing industry | 900,000 | ¥ 6.4 | |||||
Government grants recognized as other income when related depreciation | 1,400,000 | 9.5 | |||||
Government grant received in form of interest subsidy for strategic emerging industry development | 5,200,000 | AED 3.6 | |||||
Government grant received in form of interest subsidy recognized as other income | $ 15,000,000 | $ 2,200,000 | |||||
Fund Support Agreement With Shunqing Government | |||||||
Deferred Revenue Arrangement [Line Items] | |||||||
Government grant, agreement amount | AED | AED 35 |
Other non-current liabilities85
Other non-current liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |||
Income tax payable-noncurrent | [1] | $ 31,602,314 | $ 24,172,693 |
Deferred income tax liabilities (note 12) | 10,818,305 | 13,874,224 | |
Total other non-current liabilities | $ 42,420,619 | $ 38,046,917 | |
[1] | Income tax payable-noncurrent represents the accumulative balance of unrecognized tax benefits and related accrued interest. |
Common Stock (Details)
Common Stock (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 12, 2009 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Total Shares Authorized | 550,000,000 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | ||
Preferred stock, par value | $ 0.0001 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2011USD ($)shares | Aug. 31, 2011USD ($)$ / sharesshares | Dec. 31, 2008shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥)shares | Dec. 31, 2011$ / shares | Dec. 31, 2011CNY (¥) | Dec. 31, 2016$ / shares | Aug. 15, 2011$ / shares | Mar. 12, 2009$ / shares | |
Class of Stock [Line Items] | |||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||
Redemption Price per share | $ 11.53 | $ 13.26 | |||||||||
Stockholders Agreement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock per share liquidation preference | $ 0 | ||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||
Minimum 'Actual Profit' needed during period to convert preferred stock to common shares | ¥ | ¥ 800 | ¥ 520 | ¥ 360 | ||||||||
Number of shares of common stock held as collateral under pledge agreement | shares | 16,000,000 | ||||||||||
The fair value of the options issued by the Principal Stockholders to the holders of the Series D Preferred Stock | $ | $ 150,100,000 | ||||||||||
Redeemable Seriesd Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued, shares | shares | 16,000,000 | 16,000,000 | |||||||||
Proceeds from issuance of preferred stock | $ | $ 99,100,000 | $ 100,000,000 | |||||||||
Equity issuance, price per share | $ 6.25 | ||||||||||
Gross proceeds from issuance of redeemable Series D convertible preferred stocks | $ | $ 100,000,000 | ||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||
Conversion price per share for preferred stock | $ 6.25 | ||||||||||
Minimum 'Actual Profit' needed during period to convert preferred stock to common shares | ¥ | 800 | ¥ 520 | 360 | ||||||||
The minimum number of preferred shares, that if outstanding, will give holders veto rights over certain material corporate actions of the Company | shares | 1,600,000 | ||||||||||
The minimum 'Actual Profit' for the financial year threshold that must be maintained in order to prevent triggering event | ¥ | ¥ 608 | ¥ 468 | ¥ 360 | ||||||||
Series B Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued, shares | shares | 1,000,000 | ||||||||||
Percentage of voting power held by company on a fully diluted basis | 40.00% | ||||||||||
Preferred stock per share liquidation preference | $ 1 |
Warrants (Narrative) (Details)
Warrants (Narrative) (Details) - USD ($) | Dec. 01, 2014 | Apr. 03, 2014 | Oct. 04, 2010 | Dec. 01, 2009 | Oct. 31, 2010 | Dec. 31, 2014 |
Class of Warrant or Right [Line Items] | ||||||
Proceeds from exercises of warrants | $ 596,740 | |||||
Warrant term | 5 years | |||||
Series A Investors Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of Warrants Outstanding | 1,320,696 | |||||
Exercise Price | $ 4.90 | $ 5.50 | ||||
Warrant term | 5 years | |||||
Warrant expirations | 295,878 | |||||
Series A Investors Warrants [Member] | Warrant Issuance One [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrant exercise for common stock shares | 130,435 | |||||
Common stock shares issued on exercise of warrant | 130,435 | |||||
Series A Investors Warrants [Member] | Warrant Issuance Two [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrant exercise for common stock shares | 894,383 | |||||
Common stock shares issued on exercise of warrant | 472,023 | |||||
Series A Investors Warrants [Member] | Minimum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Oct. 4, 2010 | Dec. 1, 2009 | ||||
Series A Investors Warrants [Member] | Maximum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Dec. 1, 2014 | Dec. 1, 2014 | ||||
Series A Placement Agents Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of Warrants Outstanding | 117,261 | |||||
Exercise Price | $ 5.50 | |||||
Warrant term | 5 years | |||||
Series C Placement Agents Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of Warrants Outstanding | 166,667 | |||||
Exercise Price | $ 7.50 | |||||
Series C Placement Agents Warrants [Member] | Minimum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Oct. 4, 2010 | |||||
Series C Placement Agents Warrants [Member] | Maximum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Jul. 6, 2013 | |||||
Series C Investor Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of Warrants Outstanding | 1,666,667 | |||||
Exercise Price | $ 6 | |||||
Series C Investor Warrants [Member] | Minimum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Apr. 8, 2011 | |||||
Series C Investor Warrants [Member] | Maximum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise date | Oct. 14, 2011 |
Warrants (Change in Fair Value
Warrants (Change in Fair Value of Warrants) (Details) | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Class of Warrant or Right [Line Items] | |
Fair value of warrants | $ 1,063,401 |
Change in Fair value | 1,871,074 |
Exercise of warrants | (2,934,475) |
Fair value of warrants | |
Series A Investors Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value of warrants | 1,004,910 |
Change in Fair value | 1,929,565 |
Exercise of warrants | (2,934,475) |
Fair value of warrants | |
Series A Placement Agents Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value of warrants | 58,491 |
Change in Fair value | (58,491) |
Exercise of warrants | |
Fair value of warrants | |
Series C Placement Agents Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value of warrants | |
Change in Fair value | |
Exercise of warrants | |
Fair value of warrants |
Stock based compensation (Narra
Stock based compensation (Narrative) (Details) - USD ($) | Feb. 01, 2016 | Oct. 10, 2015 | Aug. 07, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | May 31, 2013 | Aug. 31, 2012 | Oct. 31, 2011 | Aug. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 07, 2014 | Aug. 07, 2013 | Aug. 06, 2013 | May 08, 2013 | Dec. 31, 2012 | Aug. 07, 2012 | Oct. 24, 2011 | Feb. 07, 2011 | May 26, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares approved to grant to certain executive officers and employees | 7,800,000 | ||||||||||||||||||||
Fair value of options vested | $ 683,106 | $ 754,547 | $ 3,090,766 | ||||||||||||||||||
Unrecognized compensation cost | $ 859,207 | ||||||||||||||||||||
Unrecognized compensation cost, recognition period | 1 year 11 days | ||||||||||||||||||||
Granted | 72,000 | ||||||||||||||||||||
Exercise Price | $ 0.24 | $ 8.01 | |||||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares to vest | 27,000 | ||||||||||||||||||||
Number of shares to cancelled | $ 45,000 | ||||||||||||||||||||
Employee Stock Option [Member] | Six Consultants [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Nonvested shares granted | 72,000 | ||||||||||||||||||||
Vesting date | Feb. 1, 2016 | ||||||||||||||||||||
Exercise Price | $ 0.24 | ||||||||||||||||||||
Vesting period | 3 months | ||||||||||||||||||||
Employee Stock Option [Member] | Three Consultants [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Granted | 450,000 | ||||||||||||||||||||
Exercise Price | $ 0.24 | ||||||||||||||||||||
Vesting period | 6 months | ||||||||||||||||||||
Employee Stock Option [Member] | General and administrative expenses [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock based compensation expense | $ 151,893 | $ 230,463 | |||||||||||||||||||
Nonvested Shares [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares to vest | 325,467 | 80,000 | 26,361 | 26,405 | 19,856 | ||||||||||||||||
Number of shares to cancelled | $ 5.28 | $ 4.65 | $ 4.47 | ||||||||||||||||||
Vesting date | Nov. 8, 2013 | Apr. 24, 2012 | Feb. 7, 2011 | ||||||||||||||||||
Granted | 26,405 | 99,856 | |||||||||||||||||||
Nonvested Shares [Member] | Three Independent Directors [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Nonvested shares granted | 10,907 | ||||||||||||||||||||
Vesting date | Feb. 7, 2016 | ||||||||||||||||||||
Nonvested Shares [Member] | Executive Officer [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Nonvested shares granted | 192,300 | ||||||||||||||||||||
Number of shares to vest | 282,460 | 192,370 | 230,000 | ||||||||||||||||||
Vesting date | Aug. 7, 2018 | Aug. 7, 2017 | Aug. 7, 2016 | Aug. 6, 2015 | Aug. 6, 2013 | ||||||||||||||||
Granted | 230,000 | ||||||||||||||||||||
Nonvested Shares [Member] | Director [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares to vest | 9,488 | ||||||||||||||||||||
Vesting date | Feb. 7, 2015 | ||||||||||||||||||||
Nonvested Shares [Member] | Consultant [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares to vest | 674,205 | 225,000 | |||||||||||||||||||
Vesting date | Feb. 7, 2014 | Feb. 7, 2013 | |||||||||||||||||||
Granted | 225,000 | ||||||||||||||||||||
Nonvested Shares [Member] | Former Employee [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares to vest | 10,000 | ||||||||||||||||||||
Vesting date | Aug. 7, 2012 | ||||||||||||||||||||
Granted | 10,000 | ||||||||||||||||||||
Nonvested Shares [Member] | General and administrative expenses [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock based compensation expense | $ 686,491 | $ 813,699 | $ 1,003,040 |
Stock based compensation (Summa
Stock based compensation (Summary of Nonvested Shares Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Nonvested Shares | |||
Vested | (27,000) | ||
Weighted Average Grant Date Fair Value Per Share | |||
Granted | $ 0.24 | ||
Nonvested Shares [Member] | |||
Number of Nonvested Shares | |||
Balance | 614,727 | 647,288 | 1,090,575 |
Granted | 203,207 | 291,948 | |
Vested | (161,257) | (171,488) | (674,205) |
Forfeited | (51,260) | (64,280) | (61,030) |
Outstanding | 402,210 | 614,727 | 647,288 |
Expected to vest as of December 31, 2016 | 325,467 | ||
Weighted Average Grant Date Fair Value Per Share | |||
Balance | $ 5.54 | $ 5 | $ 4.89 |
Granted | 6 | 5.13 | |
Vested | 4.24 | 4.40 | 4.58 |
Forfeited | 5.28 | 4.65 | 4.47 |
Outstanding | 6.10 | $ 5.54 | $ 5 |
Expected to vest as of December 31, 2016 | $ 6.10 |
Stock based compensation (Sum92
Stock based compensation (Summary of Stock Options Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Options Outstanding | ||
Outstanding, beginning | 72,000 | |
Vested | (27,000) | |
Granted | 72,000 | |
Forfeited | (45,000) | |
Outstanding, ending | 72,000 | |
Weighted Average Exercise Price | ||
Outstanding, beginning | $ 0.24 | |
Vested | 0.24 | |
Granted | 0.24 | |
Forfeited | 0.24 | |
Outstanding, ending | $ 0.24 |
Earnings per share (Calculation
Earnings per share (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income | $ 36,700,000 | $ 20,200,000 | $ 33,300,000 | $ 11,400,000 | $ 268,000 | $ 60,000 | $ 255,000 | $ 254,000 | $ 101,612,750 | $ 83,732,279 | $ 120,776,369 |
Less: Earnings allocated to participating Series D convertible preferred stock | (24,652,636,000) | (20,350,826,000) | (29,552,623,000) | ||||||||
Less: Earnings allocated to participating nonvested shares | (817,078,000) | (770,145,000) | (1,026,493,000) | ||||||||
Net income for basic and diluted earnings per share | $ 76,143,036,000 | $ 62,611,308,000 | $ 90,197,253,000 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share | 49,418,188 | 49,225,566 | 48,833,434 | ||||||||
Dilutive effect of outstanding share options | 1,009 | 3,894 | |||||||||
Denominator for diluted earnings per share | 49,419,197 | 49,229,460 | 48,833,434 | ||||||||
Earnings per common share: | |||||||||||
Basic and diluted earnings per common share | $ 0.41 | $ 0.09 | $ 0.39 | $ 0.39 | $ 1.54 | $ 1.27 | $ 1.85 |
Earnings per share (Summary of
Earnings per share (Summary of Potentially Dilutive Securities) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Convertible Preferred Stock Series D [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issuable upon exercise | 16,000,000 | 16,000,000 | 16,000,000 |
Statutory reserves (Details)
Statutory reserves (Details) | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016AED | Dec. 31, 2015AED | |
Statutory reserves [Abstract] | |||||
Appropriations to reserve fund | ¥ 46,947,403 | ¥ 48,174,525 | ¥ 37,156,541 | ||
Accumulated statutory surplus reserve | ¥ 91,830,755 | AED 186,952,683 | AED 140,005,280 |
Commitments and contingencies96
Commitments and contingencies (Narrative) (Details) ¥ in Millions, AED in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Sep. 21, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2015AED | Mar. 31, 2013CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016AED | Nov. 15, 2016USD ($) | Nov. 15, 2016CNY (¥) | Oct. 20, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Sep. 30, 2016AED | Sep. 21, 2016AED | |
RMB [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | $ 55.3 | $ 19.5 | ||||||||||||
Dubai Sports City LLC ("Sports City") [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | $ 3.8 | |||||||||||||
Remaining commitments | 1 | |||||||||||||
Dubai Sports City LLC ("Sports City") [Member] | United Arab Emirates, Dirhams [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | AED | AED 14 | |||||||||||||
Remaining commitments | AED | AED 3.7 | |||||||||||||
Samim Group FZE [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | 15 | |||||||||||||
Remaining commitments | 9.7 | |||||||||||||
Samim Group FZE [Member] | United Arab Emirates, Dirhams [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | AED | AED 55.3 | |||||||||||||
Beijin Construction [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | $ 34.3 | |||||||||||||
Remaining commitments | 29.9 | |||||||||||||
Beijin Construction [Member] | RMB [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | ¥ | ¥ 237.6 | |||||||||||||
Remaining commitments | ¥ | ¥ 207.6 | |||||||||||||
Peaceful [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | $ 12.9 | |||||||||||||
Remaining commitments | 12.9 | |||||||||||||
Hailezi [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | $ 2.5 | |||||||||||||
Remaining commitments | 1.6 | |||||||||||||
Hailezi [Member] | RMB [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Purchase Obligation | ¥ | ¥ 17 | |||||||||||||
Remaining commitments | ¥ | 11 | |||||||||||||
Xinda Holding [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Remaining commitments | 10.1 | |||||||||||||
Xinda Holding [Member] | RMB [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Remaining commitments | ¥ | ¥ 69.9 | |||||||||||||
Property, Plant and Equipment [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | ¥ | ¥ 1,800 | |||||||||||||
Working Capital [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | ¥ | ¥ 600 | |||||||||||||
Warehouse Construction Contract [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | $ 15 | 5.3 | ||||||||||||
Warehouse Construction Contract [Member] | Falcon Red Eye Contracting Co LLC [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | $ 1.8 | |||||||||||||
Remaining commitments | $ 0.9 | |||||||||||||
Warehouse Construction Contract [Member] | United Arab Emirates, Dirhams [Member] | Falcon Red Eye Contracting Co LLC [Member] | ||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||
Commitments | AED | AED 6.7 |
Commitments and contingencies97
Commitments and contingencies (Schedule of Future Minimum Rental Payments) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,017 | $ 1,402,571 | ||
2,018 | 914,750 | ||
2,019 | 113,623 | ||
2,020 | 113,623 | ||
2,021 | 113,623 | ||
2022 and thereafter | 908,981 | ||
Operating lease rental expense, plant, equipment and office spaces | $ 2,317,321 | $ 1,698,088 | $ 1,476,640 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | $ 1,201,678,898 | $ 999,192,894 | $ 1,110,685,692 | ||||||||
Revenues | $ 377,800,000 | $ 331,800,000 | $ 277,100,000 | $ 215,000,000 | $ 272,800,000 | $ 239,100,000 | $ 265,400,000 | $ 221,900,000 | 1,201,678,898 | 999,192,894 | 1,110,685,692 |
Modified Polyamide 66 PA66 [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 260,107,405 | 219,082,301 | 192,374,156 | ||||||||
Modified Polyamide 6 PA6 [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 280,070,036 | 203,485,029 | 223,122,191 | ||||||||
Plastic Alloy [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 401,664,431 | 664,431 | 400,306,257 | ||||||||
Modified Polypropylene PP [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 178,729,819 | 164,828,880 | 232,421,229 | ||||||||
Modified Acrylonitrile Butadiene Styrene ABS [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 42,121,680 | 40,510,344 | 36,804,599 | ||||||||
Polyoxymethylenes POM [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 13,370,532 | 3,481,072 | 3,606,000 | ||||||||
Polyphenylene Oxide PPO [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 15,315,570 | 12,984,368 | 14,830,647 | ||||||||
Polylactide PLA [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 2,591,856 | 5,661 | 13,952 | ||||||||
Raw Materials [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | 2,409,070 | 3,373,854 | 7,206,661 | ||||||||
Others [Member] | |||||||||||
Sales Revenue By Product [Line Items] | |||||||||||
Sales revenue | $ 5,298,499 | $ 821,183 |
Selected Quarterly Financial 99
Selected Quarterly Financial Information (Summary of Quarterly Financial Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 377,800,000 | $ 331,800,000 | $ 277,100,000 | $ 215,000,000 | $ 272,800,000 | $ 239,100,000 | $ 265,400,000 | $ 221,900,000 | $ 1,201,678,898 | $ 999,192,894 | $ 1,110,685,692 |
Gross profit | 82,300,000 | 69,600,000 | 60,300,000 | 34,800,000 | 52,000,000 | 29,300,000 | 51,500,000 | 48,600,000 | 246,955,281 | 181,381,449 | 222,457,824 |
Net income | $ 36,700,000 | $ 20,200,000 | $ 33,300,000 | $ 11,400,000 | $ 268,000 | $ 60,000 | $ 255,000 | $ 254,000 | $ 101,612,750 | $ 83,732,279 | $ 120,776,369 |
Earnings per share | |||||||||||
Basic and diluted | $ 0.41 | $ 0.09 | $ 0.39 | $ 0.39 | $ 1.54 | $ 1.27 | $ 1.85 | ||||
Basic | $ 0.56 | $ 0.31 | $ 0.51 | $ 0.17 | |||||||
Diluted | $ 0.56 | $ 0.31 | $ 0.51 | $ 0.17 |
Geographic Information (Summary
Geographic Information (Summary of Revenues from Geographic Areas) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 377,800,000 | $ 331,800,000 | $ 277,100,000 | $ 215,000,000 | $ 272,800,000 | $ 239,100,000 | $ 265,400,000 | $ 221,900,000 | $ 1,201,678,898 | $ 999,192,894 | $ 1,110,685,692 |
Assets | 853,600,000 | 798,400,000 | 853,600,000 | 798,400,000 | 533,700,000 | ||||||
PRC [Member] | Geographic Concentration Risk [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,091,500,000 | 927,600,000 | 970,500,000 | ||||||||
Assets | 483,700,000 | 544,600,000 | 483,700,000 | 544,600,000 | 451,400,000 | ||||||
Dubai, UAE [Member] | Geographic Concentration Risk [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 110,200,000 | 71,600,000 | 140,100,000 | ||||||||
Assets | $ 369,900,000 | $ 253,800,000 | $ 369,900,000 | $ 253,800,000 | $ 82,300,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 13, 2017USD ($) | Mar. 13, 2017CNY (¥) | Feb. 17, 2017$ / shares | Mar. 16, 2017USD ($) | Mar. 16, 2017CNY (¥) | Jan. 03, 2017USD ($) | Jan. 03, 2017CNY (¥) | Dec. 12, 2016USD ($) | Dec. 12, 2016CNY (¥) |
Sichuan Xinda [Member] | Bio-composite propjet [Member] | |||||||||
Investment agreement | $ | $ 317,100,000 | ||||||||
Sichuan Xinda [Member] | Bio-composite propjet [Member] | RMB [Member] | |||||||||
Investment agreement | ¥ | ¥ 2,200,000,000 | ||||||||
Sichuan Xinda [Member] | 3D printing materials project [Member] | |||||||||
Investment agreement | $ | $ 43,200,000 | ||||||||
Sichuan Xinda [Member] | 3D printing materials project [Member] | RMB [Member] | |||||||||
Investment agreement | ¥ | ¥ 300,000,000 | ||||||||
Subsequent Event [Member] | |||||||||
Common stock per share in cash | $ / shares | $ 5.21 | ||||||||
Ownership of issued and outstanding shares of common stock by buyer | 74.00% | ||||||||
Common stock closing price percentage | 28.60% | ||||||||
Common stock average price percentage | 29.30% | ||||||||
Subsequent Event [Member] | Sichuan Xinda [Member] | |||||||||
Prepaid expense | $ | $ 124,500,000 | ||||||||
Remaining commitment | $ | 82,900,000 | ||||||||
Payment for land | $ | $ 3,000,000 | ||||||||
Subsequent Event [Member] | Sichuan Xinda [Member] | Land [Member] | |||||||||
Prepaid expense | $ | $ 900,000 | ||||||||
Subsequent Event [Member] | Sichuan Xinda [Member] | RMB [Member] | |||||||||
Prepaid expense | ¥ | ¥ 863,500,000 | ||||||||
Remaining commitment | ¥ | 575,600,000 | ||||||||
Payment for land | ¥ | ¥ 20,700,000 | ||||||||
Subsequent Event [Member] | Sichuan Xinda [Member] | RMB [Member] | Land [Member] | |||||||||
Prepaid expense | ¥ | ¥ 6,000,000 | ||||||||
Subsequent Event [Member] | Harbin Hailezi Science and Technology Co [Member] | |||||||||
Purchase Obligation | $ | $ 207,400,000 | ||||||||
Subsequent Event [Member] | Harbin Hailezi Science and Technology Co [Member] | RMB [Member] | |||||||||
Purchase Obligation | ¥ | ¥ 1,440,000,000 |