Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Oct. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | China XD Plastics Co Ltd | ||
Entity Central Index Key | 0001353970 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 71,783,980 | ||
Entity Common Stock, Shares Outstanding | 70,548,841 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 78,261,679 | $ 17,201,775 |
Restricted cash | 105,072,749 | 211,231,244 |
Accounts receivable, net of allowance for doubtful accounts | 423,946,875 | 222,072,053 |
Amounts due from related parties | 941,462 | |
Inventories | 577,935,234 | 642,509,534 |
Prepaid expenses and other current assets | 158,602,834 | 171,848,122 |
Total current assets | 1,344,760,833 | 1,264,862,728 |
Property, plant and equipment, net | 778,805,976 | 830,319,716 |
Long-term prepayments to equipment and construction suppliers | 512,048,859 | 495,570,421 |
Operating lease right-of-use assets, net | 44,894,373 | 44,149,955 |
Loan receivables-non current | 242,100,096 | |
Deferred tax assets | 778,943 | |
Other non-current assets | 536,920 | 979,428 |
Total assets | 2,923,926,000 | 2,635,882,248 |
Current liabilities: | ||
Short-term bank loans, including current portion of long-term bank loans | 643,602,543 | 680,174,859 |
Bills payable | 344,081,902 | 400,671,063 |
Accounts payable | 69,602,956 | 57,458,673 |
Amounts due to related parties | 23,671,440 | 26,251,919 |
Income taxes payable | 36,078,226 | 26,458,837 |
Operating lease liabilities, current | 1,323,164 | 1,388,555 |
Accrued expenses and other current liabilities | 111,922,163 | 86,550,388 |
Total current liabilities | 1,230,282,394 | 1,278,954,294 |
Long-term bank loans, excluding current portion | 727,293,417 | 322,456,413 |
Deferred income | 105,943,812 | 92,639,620 |
Operating lease liabilities, non-current | 14,092,400 | 14,429,434 |
Other non-current liabilities | 79,099,740 | 91,028,376 |
Total liabilities | 2,156,711,763 | 1,799,508,137 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Series B preferred stock, US$0.0001 par value, 50,000,000 shares of preferred stock authorized, 1,000,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 100 | 100 |
Common stock, US$0.0001 par value, 500,000,000 shares authorized, 70,569,841 and 66,969,841 shares issued, 70,548,841 and 66,948,841 shares outstanding as of December 31, 2020 and 2019, respectively | 7,057 | 6,697 |
Treasury stock, 21,000 shares at cost | (92,694) | (92,694) |
Additional paid-in capital | 188,396,687 | 184,208,447 |
Retained earnings | 538,357,103 | 720,159,368 |
Accumulated other comprehensive loss | (9,479,166) | (67,907,807) |
Total equity attributable to China XD Plastics Company Limited | 717,189,087 | 836,374,111 |
Noncontrolling interest | 50,025,150 | |
Total stockholders' equity | 767,214,237 | 836,374,111 |
Total liabilities and stockholders' equity | $ 2,923,926,000 | $ 2,635,882,248 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Series B preferred stock, par value | $ 0.0001 | $ 0.0001 |
Series B preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Series B preferred stock, shares issued | 1,000,000 | 1,000,000 |
Series B preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 70,569,841 | 66,969,841 |
Common stock, shares outstanding | 70,569,841 | 66,969,841 |
Treasury shares, shares | 21,000 | 21,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unaudited Condensed Consolidated Statements Of Comprehensive Income | ||
Revenues | $ 1,311,901,681 | $ 1,448,204,826 |
Cost of revenues | (1,168,182,300) | (1,228,809,155) |
Gross profit | 143,719,381 | 219,395,671 |
Selling expenses | (1,217,768) | (1,465,697) |
General and administrative expenses | (32,459,606) | (35,370,445) |
Provision for doubtful accounts | (2,433,402) | (62,811,125) |
Impairment of long-lived assets | (165,253,409) | |
Impairment of long-term prepayments to equipment and construction suppliers | (21,902,361) | |
Research and development expenses | (22,494,445) | (50,329,809) |
Total operating expenses | (245,760,991) | (149,977,076) |
Operating income (loss) | (102,041,610) | 69,418,595 |
Interest income | 1,673,500 | 1,377,040 |
Interest expense | (71,177,250) | (67,242,641) |
Foreign currency exchange gains (losses) | (12,602,674) | 2,887,336 |
Gains on disposal of a subsidiary | 518,491 | |
Government grant | 8,206,779 | 10,133,355 |
Total non-operating expense, net | (73,899,645) | (52,326,419) |
Income (loss) before income taxes | (175,941,255) | 17,092,176 |
Income tax expense | (5,759,630) | (14,036,698) |
Net income (loss) | (181,700,885) | 3,055,478 |
Net income attributable to noncontrolling interest | 101,380 | |
Net income (loss) attributable to China XD Plastics Company Limited | $ (181,802,265) | $ 3,055,478 |
Earnings (loss) per common share: | ||
Basic and diluted | $ (4.06) | $ 0.05 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||
Basic and diluted | 44,733,357 | 55,200,896 |
Net Income (loss) | $ (181,700,885) | $ 3,055,478 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment, net of nil income taxes | 58,428,641 | (13,175,260) |
Comprehensive income (loss) | (123,272,244) | (10,119,782) |
Comprehensive income attributable to noncontrolling interest | 2,721,760 | |
Comprehensive income (loss) attributable to China XD Plastics Company Limited | $ (125,994,004) | $ (10,119,782) |
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 Loss [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2017 | $ 100 | $ 5,097 | $ (92,694) | $ 86,633,582 | $ 717,103,890 | $ (54,732,547) | $ 748,917,428 | |
Balance, shares at Dec. 31, 2017 | 1,000,000 | 50,948,841 | ||||||
Net Income (loss) | 3,055,478 | 3,055,478 | ||||||
Other comprehensive income | ||||||||
Stock based compensation | ||||||||
Issuance of common stock upon vesting of unrestricted stock | ||||||||
Issuance of common stock upon vesting of unrestricted stock, shares | ||||||||
Conversion of Series D Preferred Stock to common stock | $ 1,600 | $ 97,574,865 | $ 97,576,465 | |||||
Conversion of Series D Preferred Stock to common stock, shares | 16,000,000 | |||||||
Other comprehensive loss - Foreign currency translation adjustment, net of nil income taxes | (13,175,260) | (13,175,260) | ||||||
Balance at Dec. 31, 2019 | $ 100 | $ 6,697 | (92,694) | 184,208,447 | 720,159,368 | (67,907,807) | 836,374,111 | |
Balance, shares at Dec. 31, 2019 | 1,000,000 | 66,948,841 | ||||||
Balance at Dec. 31, 2018 | $ 100 | $ 6,697 | (92,694) | 184,208,447 | 720,159,368 | (67,907,807) | 836,374,111 | |
Balance, shares at Dec. 31, 2018 | 1,000,000 | 66,948,841 | ||||||
Net Income (loss) | 3,055,478 | |||||||
Balance at Dec. 31, 2019 | $ 100 | $ 6,697 | (92,694) | 184,208,447 | 720,159,368 | (67,907,807) | 836,374,111 | |
Balance, shares at Dec. 31, 2019 | 1,000,000 | 66,948,841 | ||||||
Balance at Dec. 31, 2018 | $ 100 | $ 6,697 | $ (92,694) | 184,208,447 | 720,159,368 | (67,907,807) | 836,374,111 | |
Balance, shares at Dec. 31, 2018 | 1,000,000 | 66,948,841 | ||||||
Net Income (loss) | $ (181,802,265) | 101,380 | (181,700,885) | |||||
Other comprehensive income | $ 58,428,641 | 2,721,760 | 61,150,400 | |||||
Stock based compensation | $ 4,188,240 | 4,188,240 | ||||||
Issuance of common stock upon vesting of unrestricted stock | $ 360 | 360 | ||||||
Issuance of common stock upon vesting of unrestricted stock, shares | 3,600,000 | |||||||
Conversion of Series D Preferred Stock to common stock | $ 47,202,010 | $ 47,202,010 | ||||||
Conversion of Series D Preferred Stock to common stock, shares | ||||||||
Other comprehensive loss - Foreign currency translation adjustment, net of nil income taxes | ||||||||
Balance at Dec. 31, 2020 | $ 100 | $ 7,057 | (92,694) | 188,396,687 | 538,357,103 | (9,479,166) | 50,025,150 | 767,214,237 |
Balance, shares at Dec. 31, 2020 | 1,000,000 | 70,548,841 | ||||||
Balance at Dec. 31, 2019 | $ 100 | $ 6,697 | (92,694) | 184,208,447 | 720,159,368 | (67,907,807) | 836,374,111 | |
Balance, shares at Dec. 31, 2019 | 1,000,000 | 66,948,841 | ||||||
Net Income (loss) | (181,700,885) | |||||||
Balance at Dec. 31, 2020 | $ 100 | $ 7,057 | $ (92,694) | $ 188,396,687 | $ 538,357,103 | $ (9,479,166) | $ 50,025,150 | $ 767,214,237 |
Balance, shares at Dec. 31, 2020 | 1,000,000 | 70,548,841 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||||||||
Net income (loss) | $ (150,200,000) | $ (11,000,000) | $ (65,000,000) | $ 11,000,000 | $ (181,700,885) | $ 3,055,478 | $ (181,700,885) | $ 3,055,478 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation and amortization | 61,329,756 | 59,416,674 | ||||||
Amortization of ROU assets | 1,206,595 | 1,246,459 | ||||||
Stock-based compensation | 4,188,600 | |||||||
Provision for doubtful accounts | 2,433,402 | 62,811,125 | ||||||
Impairment of long-term prepayments to equipment and construction suppliers | 21,902,361 | |||||||
Impairment of long-lived assets | (165,253,409) | |||||||
Amortization of issuance cost for syndicated loans | 8,371,500 | 244,505 | ||||||
Foreign currency exchange gains (losses) | 12,602,674 | (2,959,910) | ||||||
Gains on disposals of property, plant and equipment | (9,528) | (536,500) | ||||||
Gains on disposal of a subsidiary | (518,491) | |||||||
Deferred income tax benefit | (1,690,083) | (2,017,823) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (182,304,964) | 9,267,736 | ||||||
Amounts due from related parties | (627,983) | |||||||
Inventories | 103,112,952 | (32,889,557) | ||||||
Prepaid expenses and other current assets | (21,641,754) | (35,220,965) | ||||||
Value added tax in long-term prepayments to equipment suppliers | 42,724,335 | (11,716,377) | ||||||
Other non-current assets | 482,680 | (177,474) | ||||||
Bills payable | (79,746,791) | (209,898,423) | ||||||
Accounts payable | 9,077,206 | (26,818,422) | ||||||
Amounts due to related parties | (366,613) | |||||||
Income taxes payable | 9,225,030 | 10,508,217 | ||||||
Operating lease liabilities, current | (402,425) | (1,010,019) | ||||||
Accrued expenses and other current liabilities | 29,582,999 | (1,030,675) | ||||||
Deferred income | 6,524,046 | (6,400,297) | ||||||
Other non-current liabilities | (12,548,476) | (5,283,500) | ||||||
Net cash used in operating activities | (3,021,957) | (189,928,239) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of and deposits for property, plant and equipment | (205,399,725) | (154,115,880) | ||||||
Loan to third parties | (231,208,833) | |||||||
Refund of prepayment for property and equipment purchase | 15,703,238 | |||||||
Proceeds from disposal of property, plant and equipment | 676,757 | |||||||
Net proceeds from sales of a subsidiary | 7,282,029 | |||||||
Government grant related to construction of plant and equipment | 4,784,273 | 1,007,410 | ||||||
Net cash used in investing activities | (431,147,528) | (130,123,203) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from bank borrowings | 1,196,259,162 | 2,230,043,190 | ||||||
Repayment of bank borrowings | (852,337,025) | (2,048,519,876) | ||||||
Proceeds from interest-free advances from related parties | 7,656,520 | 84,869,533 | ||||||
Repayment of interest-free advances from related parties | (11,352,877) | (76,079,512) | ||||||
Payments of issuance cost for syndicated loans | (126,012) | (4,443,946) | ||||||
Capital injection from noncontrolling interests | 47,202,010 | |||||||
Net cash provided by financing activities | 387,301,778 | 185,869,389 | ||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash | 1,769,116 | (4,376,768) | ||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (45,098,591) | (138,558,821) | ||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 228,433,019 | $ 366,991,840 | 228,433,019 | 366,991,840 | 366,991,840 | |||
Cash, cash equivalents and restricted cash at end of year | 183,334,428 | 228,433,019 | 183,334,428 | 228,433,019 | 183,334,428 | 228,433,019 | ||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid, net of US$3,306,287 and US$3,751,573 capitalized for the years ended December 31, 2020 and 2019, respectively | 71,144,452 | 64,647,104 | ||||||
Income taxes paid | 5,621,740 | 10,446,472 | ||||||
Non-cash investing and financing activities: | ||||||||
Conversion of Series D preferred stock to common stock | 97,576,465 | |||||||
Accrual for issuance cost for syndicated loans | 2,780,000 | |||||||
Accrual for purchase of equipment and construction included in accrued expenses and other current liabilities | 5,890,438 | 1,302,739 | ||||||
Receivable for disposal of property, plant and equipment | 852,970 | |||||||
Cash and cash equivalents | 78,261,679 | 17,201,775 | 78,261,679 | 17,201,775 | 78,261,679 | 17,201,775 | ||
Restricted cash | 105,072,749 | 211,231,244 | 105,072,749 | 211,231,244 | 105,072,749 | 211,231,244 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 183,334,428 | $ 228,433,019 | $ 183,334,428 | $ 228,433,019 | $ 183,334,428 | $ 228,433,019 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Interest paid, capitalized amount | $ 3,306,287 | $ 3,751,573 |
Description of Business and Sig
Description of Business and Significant Concentrations and Risks | 12 Months Ended |
Dec. 31, 2020 | |
Basis of presentation, 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, ships and electronic appliances 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”) , Poly Ether Ether Ketone (“PEEK”) and Polyethylene (“PE”) . 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Basis of presentation, significant concentrations and risks [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) Non-controlling interests Non-controlling interests represent non-controlling shareholders’ 36.21% and 34.38% ownership interest in the two PRC entities as of December 31, 2020. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of operations and comprehensive income as an allocation of the total income or loss for the year ended December 31, 2020 between non-controlling interest holders and the shareholders of the Company. (d) 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 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 long-term assets, including 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, realizability of deferred tax assets, the accruals for tax uncertainties and other contingencies, and the discount rate used to determine the present value of the lease payments. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. (e) 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 gain or loss in the consolidated statements of comprehensive income (loss). 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 income (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. (f) Cash and cash equivalents, time deposits and restricted cash Cash and cash equivalents consist 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. 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. (g) 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. (h) 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. (i) 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. (j) Impairment of Long-lived Assets Long-lived assets, such as property, plant and equipment, and operating lease right-of-use assets, 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. Impairment charges of US$165.3 million were recognized for long-lived assets during the year ended December 31, 2020 (See Note 26). (k) Revenue Recognition The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following steps to recognize revenues: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customers, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. The Company sells its products primarily to the distributors and to a lesser extent to the direct customers. For sales in the People’s Republic of China (“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 control 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 the overseas customers, delivery of the products occurs at the point in time the product is delivered to the named port of shipment, which is when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, 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 customer is required to pay under normal sales terms. The Company’s normal payment terms in most cases are 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. Incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges 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. Outbound freight and Handling costs: The company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which it sells the product. Disaggregation of Revenues: The company manufactures and sells modified plastics primarily for automotive applications in China and to a lesser extent, in Dubai, United Arab Emirates (“UAE”). The Company disaggregates revenue based on its major customer grouping as this category represents the most appropriate depiction of how the nature, amount, and timing of revenues and cash flows are affected by economic factors. Sales by major customer group are as follows: Distributors Direct customers Others The following tables provide sales by major customer group for years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 US$ US$ Distributors 911,267,251 1,200,582,840 Direct customers 400,634,430 246,881,535 Others - 740,451 Total 1,311,901,681 1,448,204,826 (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 represent 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 (loss). 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 (loss) 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 (loss) 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 (loss). (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 (loss) when the related service is provided. For the years ended December 31, 2020 and 2019, the costs of the Company’s contributions to the defined contribution plans amounted to US$1,109,658 and US$2,236,528, respectively. For the years ended December 31, 2020 and 2019, 49% and 52% 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 considers 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 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, 2020 and 2019. 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, accounts receivable, amounts due from a related party, short-term bank loans, bills payable, accounts payable, amounts due to related parties 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 option contracts-fair values are determined using Black-Scholes model. It considers the following significant inputs: risk-free rate, foreign exchange rate and volatility. (x) Recently Issued Accounting Standards In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The Company has adopted the standard on January 1, 2019, and there was no material impact on its consolidated financial statements as a result of the adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The new guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee awards will apply to non-employee share-based transactions with limited exceptions. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The Company has adopted the standard on January 1, 2019, and there was no material impact on its consolidated financial statements as a result of the adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses for financial assets. In October 2019, the FASB issued ASU 2019-10, which amended the effective dates that were originally required by ASU 2016-13 for certain entities. The Company determined it was eligible as a smaller reporting company (SRC) under the SEC’s definition based on an its most recent SRC determination as of November 15, 2019 in accordance with SEC regulations and will adopt ASU 2016-13 on January 1, 2023. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. The Company has adopted the standard on January 1, 2020, and there was no material impact on its consolidated financial statements as a result of the adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes . In November 2019, the FASB issued ASU 2019-10, “Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASU 2019-10”). ASU 2019-10 (i) provides a framework to stagger effective dates for future major accounting standards and (ii) amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities. Specifically, ASU 2019-10 changes some effective dates for certain new standards on the following topics in the FASB Accounting Standards Codification (ASC): (a) Derivatives and Hedging (ASC 815) – now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (b) Leases (ASC 842) - now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (c) Financial Instruments — Credit Losses (ASC 326) - now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; and (d) Intangibles — Goodwill and Other (ASC 350) - now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect the cumulative effect resulting from the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2020, the FASB issued ASU 2020-02, “Financial Instruments – Credit Losses (Topic 326) and Leases (topic 842) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (topic 842)”. This ASU provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. This ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Liquidity | Note 3-Liquidity As reflected in the Company’s consolidated financial statements, the Company had working capital of approximately US$114.5 million and current ratio of 1.1 as of December 31, 2020. As of December 31, 2020, we have contractual obligations to pay (i) lease commitments in the amount of US$26.3 million, including US$1.4 million due in one year; (ii) equipment acquisition and facility construction in the amount of US$250.2 million; (iii) long-term bank loan in the amount of US$727.3 million (including principals and interests). The Company also had large unpaid tax liabilities of approximately $107.8 million, including US$36.1 within one year. Furthermore, the ongoing outbreak of COVID-19 may continue to negatively impact the Company’s business operations. A resurgence could negatively affect the Company’s ability to fulfill customer sales orders and collect customer payments timely, or disrupt the Company’s supply chain. As a result, there is a possibility that the Company’s revenue and cash flows may underperform in the next 12 months. As seen in the Company’s financial statements, for the year ended December 31, 2020, the Company had a significant loss of US$181.7 million primarily due to an impairment of long-lived assets of US$165.3 million for Dubai Xinda and had recurring operating cash outflows of US$3.0 million. These conditions raised substantial doubts about the Company’s ability to continue as a going concern. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. The Company had cash and cash equivalents and restricted cash of approximately US$188.3 million and accumulated retained earnings of approximately US$538.4 million. The Company also had outstanding accounts receivable of approximately $423.9 million, of which approximately US$410.8 million or 96.9% has been subsequently collected as of the date of this report. Cash collection from accounts receivable become available for use as working capital. Currently, the Company is working to improve its liquidity and capital sources primarily through cash flows from operation, debt financing, and financial support from its principal shareholder. As of December 31, 2020, the Company had lines of credit of RMB11,165.7 million (equivalent to US$1,711.2 million) and unused line of credit of USD107.0 million. Management expects that it would be able to renew all of its existing bank loans upon their maturity based on past experience and the Company’s good credit history. On September 29, 2021, the Company obtained another line of credit of RMB1,400 million (equivalent to US$214. 6 million) from Longjiang Bank, Harbin as working capital lo and withdrew RMB200 million (equivalent to US$30.7 million) (See Note 31). The Company plans to fund its construction of new facilities in a controlled and gradual manner, and by obtaining additional bank financing and reducing costs to improve profitability and improve working capital. The Company’s ability to fulfill its current obligations will depend on the future realization of its current assets and the future revenues generated from its operations. The Company expects to realize the balance of its current assets within the normal operating cycle of a twelve month period. If the Company is unable to realize its current assets within the normal operating cycle of a twelve month period, the Company had considered supplementing its available sources of funds through continuously seeking debt financing from PRC banks and other financial institutions to support its expansion plan. Based on the current operating plan, management believes that the above-mentioned measures collectively will most likely have sufficient funds to pursue its expansion plan as previously expected. There is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as changes in the PRC government policy, economic conditions, and competitive pricing in the industries that the Company operates in. In addition, the recent outbreak of new coronavirus pandemic posed disruption and restrictions on its operations and those of the Company’s customers which not only negatively impact the Company’s financial conditions but also slowed down the macro-economic development worldwide. If management is unable to execute this plan, there would likely be a material adverse effect on the Company’s business. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Restricted cash | Note 4 – Restricted cash Below is restricted cash pledged for: December 31, 2020 2019 US$ US$ Bills payable relating to purchases of raw materials 95,413,051 151,498,873 Letter of credit 7,544,223 - Syndicated loans - 58,229,047 Short-term bank loans 1,532,591 1,433,445 Government grant 553,534 69,879 Others 29,350 - Total restricted cash 105,072,749 211,231,244 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$95,413,051 and US$151,498,873 as of December 31, 2020 and 2019, respectively. Upon maturity and repayment of the bills payable, which is generally within 6 months, the cash becomes available for use by the Company. Short-term bank deposits that are related to letter of credit are reported as restricted cash and amounted to US$7,544,223 and nil as of December 31, 2020 and 2019, respectively. Short-term bank deposits that are related to government grant are reported as restricted cash and amounted to $553,534 and US$69,879 as of December 31, 2020 and 2019, respectively. Short-term bank deposits that are pledged for the US$135.0 million syndicated loans obtained from a consortium of banks led by the Industrial and Commercial Bank of China (Macau) Limited are reported as restricted cash and amounted to nil and US$58,229,047 as of December 31, 2020 and 2019, respectively, for details of the syndicated loans please refer to note 11 (borrowing). |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable | Note 5 – Accounts receivable Accounts receivable consists of the following: December 31, 2020 2019 US$ US$ Accounts receivable 488,974,750 284,921,071 Allowance for doubtful accounts (65,027,875 ) (62,849,018 ) Accounts receivable, net 423,946,875 222,072,053 As of December 31, 2020 and 2019, the accounts receivable balances also include notes receivable in the amount of US$93,468 and US$107,845, respectively. As of December 31, 2020 and 2019, nil and US$ The movements of the allowance for doubtful accounts are as follows: December 31, 2020 2019 US$ US$ Balance at the beginning of the year (62,849,018 ) (38,516 ) Provision (2,433,402 ) (62,811,125 ) Effect of foreign currency exchange rate changes 254,545 623 Balance at the end of the year (65,027,875 ) (62,849,018 ) As of December 31, 2020, accounts receivable of US$2.0 million from the Company’s two customers in UAE and $0.2 million for one customer in PRC was overdue for more than 12 months. Based on assessment of the collectability of the amounts due from the customers, the Company provided an allowance for doubtful accounts of US$2.2 million for the period ended December 31, 2020. As of December 31, 2019, accounts receivable of US$62.8 million from the Company’s customer in UAE was overdue and the customer failed to make payments under the agreed extended repayment plan. Based on its assessment of the collectability of the amounts due from the customer, the Company provided an allowance for doubtful accounts of US$62.8 million for the year ended December 31, 2019. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6 – Inventories Inventories consist of the following: December 31, 2020 2019 US$ US$ Raw materials and semi-finished goods 560,879,015 637,278,817 Finished goods 17,056,219 5,230,717 Total inventories 577,935,234 642,509,534 As of December 31, 2020 and 2019, the Company pledged inventories in amount of approximately US$20.9 million and US$40.1 million, respectively, for a one-year short-term loan and bills payable, details refer to Note 11. There were $4,036 and nil write- down of inventories during the years ended December 31, 2020 and 2019. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 7 – Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: December 31, 2020 2019 US$ US$ Advances to suppliers (i) 143,247,078 118,166,925 Value added taxes receivables (ii) 9,485,514 6,239,719 Receivables from Hong Kong Grand Royal Trading Co., Ltd. (iii) - 42,566,949 Interest receivable (iv) 377,080 615,049 Others (v) 5,493,162 4,259,480 Total prepaid expenses and other current assets 158,602,834 171,848,122 (i) Advances to suppliers are the advances to purchase raw materials. (ii) Value added taxes receivables mainly represent the input taxes on purchasing equipment by Heilongjiang Xinda Enterprise Group Company Limited (“HLJ Xinda Group”) and Sichuan Xinda Enterprise Group Company Limited (“Sichuan Xinda”), Heilongjiang Xinda Marcromolecule Composite Materials, and Heilongjiang Xinda Bio-Based Composite Materials Company Ltd. (“Xinda Bio-Based Composite Materials”), which are to be net off with output taxes. Value added taxes receivables were recognized in operating activities in consolidated statements of cash flows. (iii) Hong Kong Grand Royal Trading Co., Ltd. (“Hong Kong Grand Royal”) is a raw material supplier of AL Composites Materials FZE (“Dubai Xinda”). Dubai Xinda has prepaid US$48.2 million to Hong Kong Grand Royal in 2017 for purchase of raw materials. Due to the price fluctuation of raw materials, Hong Kong Grand Royal could not purchase and deliver the raw materials to Dubai Xinda. In July 2019, both parties entered into a supplemental agreement to cancel the original purchase agreements and Hong Kong Grand Royal shall settle the advance payment. The US$42.6 million advance payment as of December 31, 2019 was settled during the year ended December 31, 30, 2020. (iv) Interest receivable mainly represents interest income accrued from time deposits and restricted cash. (v) Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 8– Property, plant and equipment, net Property, plant and equipment consist of the following: December 31, 2020 2019 US$ US$ Machinery, equipment and furniture 548,087,086 575,317,840 Motor vehicles 2,232,982 1,709,182 Workshops and buildings 153,585,519 156,256,761 Construction in progress 386,022,110 335,245,525 Total property, plant and equipment 1,089,927,697 1,068,529,308 Less: accumulated depreciation (311,121,721 ) (238,209,592 ) Property, plant and equipment, net 778,805,976 830,319,716 The Company capitalized US$3,306,287 and US$3,751,573 of interest costs as a component of the cost of construction in progress for the years ended December 31, 2020 and 2019 respectively. Dubai Xinda experienced a shutdown since the outbreak of COVID-19 in early February, 2020 and ceased operations as of December 31, 2020. The management assessed the quoted market value of Dubai Xinda’s property, plant and equipment, through a third party independent appraisal at a realizable value and decided to write off the existing plant, property and equipment, as well as the construction in progress. Dubai Xinda recorded impairment charges of US$77.0 million and US$88.3 million for property, plant and equipment and construction in progress, respectively (See Note 26). Depreciation expense on property, plant and equipment was allocated to the following expense items: Years Ended December 31, 2020 2019 US$ US$ Cost of revenues 56,344,017 52,691,430 General and administrative expenses 2,505,195 2,949,915 Research and development expenses 2,477,689 3,770,983 Selling expenses 2,855 4,346 Total depreciation expense 61,329,756 59,416,674 |
Prepayments to Equipment and Co
Prepayments to Equipment and Construction Suppliers | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments to equipment suppliers [Abstract] | |
Prepayments to Equipment and Construction Suppliers | Note 9 – Prepayments to equipment and construction suppliers December 31, 2020 2019 US$ US$ Hailezi (i) 485,504,105 468,529,714 Beijin Construction (ii) 7,537,793 6,795,439 Peaceful Treasure Limited(iii) — 19,967,014 Xinda High-Tech (iv) 18,437,064 — Others 569,897 278,254 Total prepayments to equipment and construction suppliers 512,048,859 495,570,421 HLJ Xinda Group-Storage System On September 26, 2016 and February 28, 2017, HLJ Xinda Group entered into equipment purchase contracts with Hailezi for a total consideration of RMB782.2 million (equivalent to US$120.0 million) to purchase storage facility and other equipment, which will be used for upgrading the storage system of warehouse located in Harbin, China. Pursuant to the contracts with Hailezi, HLJ Xinda Group prepaid RMB621.6 million (equivalent to US$95.3 million) during the first quarter of 2017. Due to a redesign of outdoor storage facility in June 2017, HLJ Xinda Group entered into a supplementary agreement with Hailezi, which decreased the original contract amount to RMB283.7 million (equivalent to US$43.5 million). Hailezi refunded RMB369.1 million (equivalent to US$56.6 million) to HLJ Xinda Group on June 22, 2017. On September 25, 2019, HLJ Xinda Group entered into a supplementary agreement with Hailezi, pursuant to which the total contract amount was increased to RMB327.8 million (equivalent to US$50.2 million). As of December 31, 2020, HLJ Xinda Group has prepaid RMB255.0 million (equivalent to US$39.1 million) for the above contracts. The equipment was delivered in November, 2020. In connection with the above storage system upgrading, on December 14, 2020, HLJ Xinda Group entered into a contract with Hailezi for RMB1,070.4 million (equivalent to US$164.0 million), with delivery date on June 30, 2021 and delivered during third quarter of 2021. Pursuant to the contracts with Hailezi, HLJ Xinda Group has prepaid RMB642.2 million (equivalent to US$98.4 million) on December 30, 2020. HLJ Xinda Group-HLJ Project-100,000 metric tons On July 21, 2017, HLJ Xinda Group entered into three investment agreements with the Management Committee of Harbin Economic- Technological Development Zone with respect to the industrial project for 300,000 metric tons of biological composite materials, the industrial project for upgrading existing equipment for 100,000 metric tons of engineering plastics and the industrial project for a 3D printing intelligent manufacture demonstration factory and a 3D printing display and experience cloud factory (the “HLJ Project”). In order to fulfill the agreements, HLJ Xinda Group entered into an equipment purchase contract with Hailezi to purchase production equipment in November 2017, which will be used for 100,000 metric tons of engineering plastics located in Harbin, for a consideration of RMB939.7 million (equivalent to US$144.0 million). Pursuant to the contract with Hailezi, HLJ Xinda Group has prepaid RMB920.9 million (equivalent to US$141.1 million) in total as of December 31, 2018. During 2019, HLJ Xinda Group entered into a supplementary agreement with Hailezi, pursuant to which the contract amount was increased to RMB958.7 million (equivalent to US$146.9 million). RMB848.4 million (equivalent to US$130.0 million) of the equipment was delivered in 2019 and the prepayment was transferred to construction in progress. As of December 31, 2020, the amount of the remaining prepayment was RMB37.7 million (equivalent to US$5.9 million). In connection with the above 100,000 metric tons of HLJ project, on October 12, 2020 and November 10, 2020, HLJ Xinda Group entered into two additional equipment contracts with Hailezi for a consideration of RMB65.4 million (equivalent to US$10.0 million) for Phase II and RMB129.7 million (equivalent to US$19.8 million) for Phase III, respectively with delivery date on March 31, 2021. Pursuant to the contracts with Hailezi, HLJ Xinda Group has prepaid full payments for the two additional contracts on December 30, 2020. The equipment was delivered in January 2021. HLJ Xinda Group-HLJ Project-300,000 metric tons In connection with the HLJ project, in June and July 2018, HLJ Xinda Group entered into two equipment purchase contracts with Hailezi to purchase production equipment, which will be used for 300,000 metric tons of biological based composite material, located in Harbin, for a consideration of RMB1,906.8 million (equivalent to US$292.2 million). On November 14, 2019, HLJ Xinda Group entered into a supplementary agreement with Hailezi, which decreased the original contract amount to RMB1,780.9 million (equivalent to US$272.9 million) with delivery schedule amended to December 31, 2021. Pursuant to the contracts with Hailezi, HLJ Xinda Group has prepaid RMB540.0 million (equivalent to US$82.8 million) as of December 31, 2020. HLJ Xinda Group-Qingling Road & Jiangnan Road Project On December 3, 2019, HLJ Xinda Group entered into two equipment purchase contracts with Hailezi to purchase production equipment used to upgrade Qinling Road Factory (“Qinling Road Project”) and Jiangnan Road Factory (“Jiangnan Road Project”) in Harbin. Total consideration is RMB162.0 million (equivalent to US$24.8 million) and RMB713.6 million (equivalent to US$109.4 million) for Qinling Road Project and Jiangnan Road Project respectively. Pursuant to the contracts with Hailezi, HLJ Xinda has prepaid in full for Qingling Road Project and Jiangnan Road Project, with full delivery of equipment as of December 31, 2020 and prepayment was transferred to construction in progress during the year ended December 31, 2020. In Connection with Jiangnan Road Project, on December 4, 2020, HLJ Xinda Group entered into purchase contract with Hailezi to purchase upgrading equipment with a total consideration of RMB1,070.4 million (equivalent to US$164.0 million) with delivery expected in October,2022. The Company prepaid US$642.2 million (equipment to US$98.4 million) as of December 31, 2020 Sichuan Xinda- Nanchong Project On March 17, 2017, Sichuan Xinda entered into a definitive agreement with the People’s Government of Shunqing District, Nanchong City of Sichuan Province for the production of 300,000 metric tons of bio-composite materials and additive manufacturing and 20,000 metric tons of functional masterbatch, a high-end color additive process in plastics manufacturing (the “Nanchong Project”). The Nanchong Project will be located in a land area of 250 mu (equivalent to 41.2 acres), with 215 mu designated for bio-composite materials and additive manufacturing production and 35 mu to be designated for functional masterbatch production. The projected total capital expenditures for the project are approximately RMB2.5 billion (equivalent to US$383.1 million). In connection with the Nanchong Project, on June 21, 2018, Sichuan Xinda entered into equipment purchase contracts with Hailezi to purchase production equipment for a consideration of RMB1,910.5 million (equivalent to US$292.8 million). Pursuant to the contract with Hailezi, Sichuan Xinda has prepaid RMB1,575.8 million (equivalent to US$241.5 million) as of December 31, 2020. All equipment has not been delivered yet as of December 20, 2020. (i) The table below summarized the balance of prepayments to Hailezi for each of the projects as of December 31, 2020 and 2019, and the movements of the prepayments: (in millions US$) Year Projects Balance as of December 31, 2019 Prepaid in 2020 Transfer to CIP in 2020 Effect of foreign currency exchange rate changes Balance as of December 31, 2020 2017 Storage system $ 36.7 $ - $ (5.8 ) $ 1.7 $ 32.6 2017 HLJ Project 5.9 - (5.9 ) - - 2018 HLJ Project 77.4 28.1 (109.4 ) 3.9 - 2017 Nanchong Project 3.0 - (3.0 ) - - 2018 Nanchong Project 245.1 0.2 (3.8 ) - 241.5 2019 Qinling Road Project 18.6 5.0 (24.8 ) 1.2 - 2019 Jiangnan Road Project(300,000 metric tons) 81.8 - - 1.0 82.8 2020 Jiangnan Road Project Phase II - 98.4 - - 98.4 2020 HLJ Project-Phase II - 10.0 - - 10.0 2020 HLJ Project-Phase III - 19.9 - - 19.9 2020 Others - 3.2 (2.9 ) - 0.3 Total $ 468.5 $ 164.8 $ (155.6 ) $ 7.8 $ 485.5 (ii) Since November 15, 2016, Sichuan Xinda entered into decoration contracts with Sichuan Beijin Construction Engineering Company Limited (“Beijin Construction”) to perform indoor and outdoor decoration work for a consideration of RMB264.3 million (equivalent to US$40.5 million). Pursuant to the contracts with Beijin Construction, Sichuan Xinda has prepaid RMB122.8 million (equivalent to US$18.8 million) as of December 31, 2020, of which RMB73.9 million (equivalent to US$11.3 million) was transferred to construction in progress. (iii) On October 20, 2016, Sichuan Xinda entered into an equipment purchase agreement purchase contract with Peaceful Treasure Limited (“Peaceful”) for a total consideration of RMB89.8 million (equivalent to US$13.8 million) to purchase certain production and testing equipment. The Company prepaid RMB 33.9 million (equivalent to US$4.9 million) as of December 31, 2020. On May 31, 2019, Dubai Xinda entered into an equipment purchase contract with Peaceful for a total consideration of US$18.8 million to purchase storage and testing equipment. The Company prepaid US$17.0 million as of September 30, 2020 As of December 31, 2020, Peaceful failed to deliver the equipment under the purchase agreements. Based on the assessment of the realizability of the prepayments, the Company recognized a full impairment of US$21.9 million for the year ended December 31, 2020. (iv) On January 10, 2020, Heilongjiang Xinda New Materials Co., Ltd. (“HLJ New Materials”), a subsidiary of the Company, entered into a purchase agreement with Harbin Xinda High-Tech Co., Ltd. (“Xinda High-Tech”) to purchase the land use right, buildings and facilities of one factory in Heilongjiang Province from Xinda High-Tech for a consideration of RMB120.3 million (equivalent to USD18.4 million). On January 23, 2020, HLJ New Materials has paid the consideration to Xinda High-Tech. As of December 31, 2020, the transfer procedures were not completed and were expected to be completed in the second quarter of 2022. |
Loan Receivables-Non Current
Loan Receivables-Non Current | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Loan Receivables-Non Current | Note 10– Loan receivables-non current As of December 31, 2020, the Company has loan receivables of RMB870.9 million (equivalent to US$144.3 million) due from Heilongjiang Xinda Enterprise Group Shanghai New Materials Sales Company Limited (“Shanghai Sales”), a company formerly owned by the Company and was disposed in December 2018, RMB444.3 million (equivalent to US$68.1 million) due from Heilongjiang Xinda Macromolecule Composite Materials Company Limited (“Macromolecule Composite Materials”), a company established by Shanghai Sales, and RMB264.3 million (equivalent to US$40.5 million) due from Guangzhou Peiqu International Trading LLC (“Peiqu International”), the Company’s supplier, as interest-free advances. December 31, 2020 2019 US$ US$ Shanghai Sales 133,466,679 - Macromolecule Composite Materials 68,099,128 - Peiqu International 40,534,289 - Total loan receivables-non current 242,100,096 - |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 11– 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, 2020 2019 US$ US$ Unsecured loans 480,957,562 407,657,464 Loans secured by accounts receivable (i) - 64,505,031 Guaranteed loan (ii) 36,536,958 — Loans secured by restricted cash (iii) 15,325,905 14,334,451 Syndicated loan facility (iv) - 128,020,559 Loan secured by inventories (v) 12,260,724 5,733,781 Current portion of long-term bank loans (note b) 98,521,394 59,923,573 Total short-term loans, including current portion of long-term bank loans 643,602,543 680,174,859 As of December 31, 2020 and 2019, the Company’s short-term bank loans (including the current portion of long-term bank loans) bear a weighted average interest rate of 5.2% and 5.0% per annum, respectively. All short-term bank loans mature at various times within one year and contain no renewal terms. (i) As of December 31, 2020 and 2019, the Company had nil and US$64.5 million of short-term bank loans obtained from Longjiang Bank secured by accounts receivables of nil and US$92.2 million, respectively. (ii) In January 2019, Sichuan Xinda obtained a one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. Pursuant to the extension agreement dated January 2020, the loan maturity date was extended to July 2020 with a third-party guarantee provided by Nanchong Shuntou Development Group Co., Ltd. (“Shuntou”). Pursuant to the loan contract, the ratio of liabilities to assets of Sichuan Xinda shall not exceed 55%. The loan was repaid in July 2020. In July 2020, Sichuan Xinda obtained a new one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. As of December 31, 2020, the Company repaid RMB11.6 million (equivalent to US$1.8 million). (iii) As of December 31, 2020 and 2019, the Company had US$15.3 million and US$14.3 million of short-term bank loans secured by restricted cash of US$1,532,591 and US$1.4 million, respectively. (iv) On October 2, 2019, Xinda Holding (HK) Company Limited (“Xinda Holding (HK)”), a wholly owned subsidiary of the Company, entered into a facility agreement for a one-year loan facility due on December 15,2020 in an aggregate amount of US$135.0 million with a consortium of banks and financial institutions led by Industrial and Commercial Bank of China (Macau) Limited. The Company made the drawdown on December 18, 2019. The interest rate of the loan is 2.0% plus three-month LIBOR. The Company incurred agency fee and arrangement fee in the amount of US$7.2 million for the loan and without unamortized balance as of December 31, 2020. Loan 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 9.21% as of December 16, 2020. Xinda Holding (HK) made a full repayment of US$135.0 million on December 16, 2020. (v) In November 2019, the Company obtained a one-year short-term loan of RMB40.0 million (equivalent to US$5.9 million) from Bank of Inner Mongolia, pledged by inventories in amount of approximately US$39.1 million for the above loan and bills payable in amount of RMB142.0 million (equivalent to US$20.9 million) issued by Bank of Inner Mongolia. On October 20, 2020, the Company repaid the loan in full. (b) Non-current December 31, 2020 2019 US$ US$ Secured loans (i) 585,890,017 1,742,389 Unsecured loans (ii) 239,924,794 380,637,597 Less: current portion (98,521,394 ) (59,923,573 ) Total long-term bank loans, excluding current portion 727,293,417 322,456,413 As of December 31, 2020 and 2019, the Company’s long-term bank loans (excluding the current portion of long-term bank loans) bear a weighted average interest rate of 5.2% and 5.4% per annum, respectively. (i) On December 26, 2018, the Company obtained a five-year secured loan of AED8.0 million (equivalent to US$2.2 million) from National Bank of Umm Al Qaiwain at an interest rate of three-month EBOR (0.51% as of December 31, 2020) plus 3.75%. The long-term loan was secured by an undated cheque of AED8.8 million (US$2.4 million) favoring the bank provided by Dubai Xinda. The cheque would not be cashed by the bank unless Dubai Xinda defaults. Principal will be repaid in ten half-yearly installments of AED0.8 million (equivalent to US$0.2 million) each. The Company repaid AED1.6 million (equivalent to US$0.4 million) during 2020 and 2019, respectively. On June 20, 2019, Sichuan Xinda obtained a seven-year unsecured loan of RMB1.5 billion (equivalent to US$229.9 million) from Longjiang Bank of Harbin at an interest rate of 5.6350% per annum, at an interest rate on the date of withdrawal plus 0.15% of 5-year LPR). On April 29, 2020, HLJ Xinda Group obtained a three-year unsecured loan of RMB1.0 billion (equivalent to US$ 153.3 million) from Longjiang Bank of Harbin at an interest rate of 5.5% per annum. On November 30, 2020, HLJ Xinda Group obtained a six-year secured loan of RMB1.06 billion (equivalent to US$162.5 million) from Longjiang Bank of Harbin at an interest rate of 4.9% per annum, pledged by HLJ Xinda Group. On December 27, 2020, HLJ New Materails obtained a three-year secured loan of RMB400.0 million (equivalent to US$61.3 million) from Agriculture Bank of China, Harbin Branch at an interest rate of 5.13% per annum and interest due by monthly. The long-term loan was under jointly liability guarantee by Sichuan Xinda. On January 5, 2017 and November 6, 2017, Sichuan Xinda obtained two unsecured loan of RMB200 million, totalling RMB400 million (equivalent to US$61.3 million) from Nanchong Shuntou Development Group Co., Ltd. (“Shuntou”) both at an interest rate of 4.35% per annum. The Company repaid back in 2019. (ii) As of December 31, 2020, 2019, the Company’s long-term unsecured bank loans (excluding the current portion of long-term bank loans) bear a weighted average interest rate of 5.4% and 5.5% per annum, respectively. The Company’s long-term unsecured bank loans (excluding the current portion of long-term bank loans) will mature serially from 2021 to 2027. Maturities on long-term bank loans (including current portion) are as follows: December 31, 2020 US$ Year ended December 31, 2021 316,483,751 2022 49,320.936 2023 158,405,133 2024 39,683,782 After 2025 163,399,815 Total 727,293,417 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 12 – Accrued expenses and other current liabilities As of December 31, 2020 2019 US$ US$ Payables for purchase of property, plant and equipment 21,778,463 12,445,494 Accrued freight expenses 23,898,196 17,665,998 Accrued interest expenses 10,337,622 15,650,965 Contract liabilities (i) 15,633,147 17,922,160 Accrued payroll and benefits 9,633,072 10,882,901 Non income tax payables 7,804,449 6,056,024 Others (ii) 22,837,214 5,926,846 Total accrued expenses and other current liabilities 111,922,163 86,550,388 (i) Contract liabilities mainly represent the advance received from customers in the PRC for the finished goods and raw materials purchases. The change in contract liabilities primarily represents the cash received, less amounts recognized as revenues during the period. (ii) Others mainly represent accrued audit and consulting fees, electricity fee and other accrued miscellaneous operating expenses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13 – Related party transactions The related party transactions are summarized as follows: Years Ended December 31, 2020 2019 US$ US$ Revenues resulting from transactions with a related party: Sales to Macromolecule Composite Materials (i) - 1,040,485 Financing transactions with related parties: Interest-free advances from Mr. Jie Han (the Chairman and Chief Executive Officer) 405,536 2,920,049 Repayment of interest-free advances from Mr. Jie Han - (116,802 ) Interest-free advances from Mr. Jie Han’s son - 8,760,147 Repayment of interest-free advances from Mr. Jie Han’s wife (2,667,594 ) - Repayment of interest-free advances from Mr. Jie Han’s Son (9,423,568 ) - Interest-free advances from Mr. Qingwei Ma (Chief Operating Officer) 3,570,862 9,425,891 Repayment of interest-free advances from Mr. Qingwei Ma (1,565,762 ) (8,265,781 ) Interest-free advances from Mr. Xin Yang (CFO of HLJ Xinda Group) 9,198,107 - Interest-free advances from senior management employees of HLJ Xinda Group and Sichuan Xinda - 275,234 Repayment of interest-free advances from senior management employees in HLJ Xinda Group and Sichuan Xinda - (4,679,484 ) Interest-free advances from Macromolecule Composite Materials (i) - 63,488,212 Repayment of interest-free advances from Macromolecule Composite Materials - (63,017,445 ) Net financing transactions with related parties 482,389 8,790,021 (i) On December 26, 2018, Heilongjiang Xinda Enterprise Group Shanghai New Materials Sales Company Limited (“Shanghai Sales”), Since Mr. Xigang Chen resigned from Sichuan Xinda on August 5, 2019, Macromolecule Composite Materials had ceased to be a related party of the Company. The related party balances are summarized as follows: December 31, 2020 2019 Amounts due from a related party: US$ US$ Mr. Qingwei Ma Chief Operating Officer) 941,462 - Amount due from Mr. Qingwei Ma was employee advance to be reimbursed. December 31, 2020 2019 US$ US$ Amounts due to related parties: Mr. Jie Han 13,973,332 12,499,642 Mr. Jie Han’s wife 500,000 3,137,539 Mr. Jie Han’s son - 9,317,393 Mr. Qingwei Ma ( Chief Operating Officer) - 1,146,756 Mr. Xin Yang (CFO of HLJ Xinda Group) 9,198,108 - Senior management employee in HLJ Xinda GroupXinda - 150,589 Total amounts due to related parties 23,671,440 26,251,919 Amounts due to related parties were interest free advances for operating expense paid on behalf of the Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 – Income Taxes China XD is subject to a tax rate 21% per the Tax Cuts and Jobs Act (the “Tax Act”) enacted beginning 2018, and files a U.S. federal income tax return. Under the current laws of the British Virgin Island (“BVI”), Favor Sea (BVI) and Xinda Deluxe Faith Limited, subsidiaries of China XD, these two are 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 (HONGKONG) Macromolecule Material Limited 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. Effective from Janaury 1, 2021, Sichuan Xinda is entitled to 15% from January 1, 2021 to December 31, 2030 per Announcement No. 23 (2020) of the State Administration of Taxation on Extending Taxation Policy for Western Region Enterprises issued by the Ministry of Finance of PRC on April 23, 2020. Pursuant to a notice on Promotional Taxation for Small Business ( No. 2019-13) issued by State Taxation Administration on January 17, 2019 Sichuan Bio-Based is entitled to 20% preferential income tax rate. 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’s earnings from its subsidiaries in PRC and Dubai are subject to the U.S. federal income tax at 21%, 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$753,993,820 and US$799,118,243 as of December 31, 2020 and 2019, 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$60,405,120 and US$149,014,511 as of December 31, 2020 and 2019, respectively. The components of income (loss) before income taxes are as follows: Years Ended December 31, 2020 2019 US$ US$ US (2,792,888 ) (1,870,587 ) BVI (3,313 ) (47 ) Hong Kong SAR (12,297,593 ) (16,295,949 ) Dubai (209,419,631 ) (52,773,153 ) PRC, excluding Hong Kong SAR 48,572,168 88,031,912 Total income (loss) before income taxes (175,941,257 ) 17,092,176 The Company’s income tax expense (benefit) recognized in the consolidated statements of comprehensive income (loss) consists of the following: Years Ended December 31, 2020 2019 US$ US$ Current income tax expense-PRC 9,472,088 15,625,998 Current income tax expense-US - 428,523 Deferred income tax benefit-PRC (3,712,458 ) (2,017,823 ) Total income tax expense 5,759,630 14,036,698 The effective income tax rate based on income tax expense and income before income taxes reported in the consolidated statements of comprehensive income (loss) differs from the PRC statutory income tax rate of 25% due to the following: Years Ended December 31, 2020 2019 US$ US$ PRC statutory income tax rate 25 % 25 % Increase (decrease) in effective income tax rate resulting from: Tax rate differential on entities not subject to PRC income tax (107.8 )% 85.0 % Non-deductible expenses 10.0 % 10.0 % Preferential tax rate 10.8 % (16.7 )% Change in valuation allowance 36.1 % 23.3 % R&D additional deduction 38.0 % (49.5 )% Reversal of unrealized tax benefits (21.4 )% (21.4 )% True-up prior year’s tax filing (4.2 )% 16.2 % Others 10.2 % 10.2 % Effective income tax rate (3.3 )% 82.1 % The principal components of the Company’s deferred income tax assets and deferred income tax liabilities are as follows: December 31, 2020 2019 US$ US$ Deferred income tax assets: Tax loss carry forwards 33,524,819 14,313,575 Impairment of prepayment in relation to equipment and construction in progress 778,943 — Less: valuation allowance (33,524,819 ) (14,313,575 ) Deferred income tax assets, net 778,943 — Deferred income tax liabilities (included in other non-current liabilities): Property, plant and equipment 3,101,509 4,613,524 Harbin Xinda Macromolecule Material Research Institute (“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 (“Research Center”). 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 Harbin Xinda Plastics Material Research Center Company Limited (“Xinda Material 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 (loss). 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$3,171,643and US$4,613,524 as of December 31, 2020 and 2019, respectively. The movements of the valuation allowance are as follows: Years Ended December 31, 2020 2019 US$ US$ Balance at the beginning of the year 14,313,575 10,559,911 Additions of valuation allowance 19,211,244 3,983,094 Reduction of valuation allowance - (229,430 ) Balance at the end of the year 33,524,819 14,313,575 The valuation allowance as of December 31, 2020 and 2019 was primarily provided for the deferred income tax assets of certain entities, which were at cumulative loss positions. As of December 31, 2020, for U.S. federal income tax purposes, the Company had tax loss carry forwards of (i) US$28,649,345 from subsidiaries in the PRC, of which US$5,431,116, US$5,177,047 and US$2,018,821 would expire by 2023, 2024 and 2025, respectively, if unused, and (ii) US$114,800,121from subsidiaries in HK, which could be carried forward indefinitely to be offset against future profits. In view of the cumulative losses for the entities concerned, 100% valuation allowances were provided against their deferred income tax assets as of December 31, 2020 and 2019, which in the judgment of the management, are not more likely than not to be realized. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Years Ended December 31, 2020 2019 US$ US$ Balance at the beginning of the year 34,706,069 33,048,639 Increase related to current year tax positions 5,775,068 5,279,589 Decrease related to prior year tax positions (5,720,163 ) (3,622,159 ) Effect of foreign currency change 4,542,637 - Balance at the end of the year 37,071,419 34,706,069 At December 31, 2020 and 2019, there are U$37,071,419 and US$28,391,864 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, 2020 and 2019, the Company recognized approximately US$4,603,509 and US$1,819,859 interest expense. The Company had approximately US$15,565,560 and US$13,774,161 for the interest accrued related to unrecognized tax benefits amounting to US$37,071,419 and US$34,706,069 as of December 31, 2020 and 2019, respectively. US$6,046,897 previously unrecognized tax benefits accrued in year 2014 and the related accrued interest amounting to US$5,442,207 were reversed during the year ended December 31, 2020 due to the expiration of five-year tax assessment period on May 31, 2020. The unrecognized tax benefits in year 2014 amounting to US$5,655,714 and related accrued interest amounting to US$4,665,964 were classified as current liabilities as the five-year tax assessment period will expire on May 31, 2020. As of December 31, 2020 and 2019, nil and nil 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 PRC tax authorities, US tax authorities and Hong Kong tax authorities have up to five years, three years and six years, respectively, to conduct examinations of the Company’s tax filings. Accordingly, the PRC subsidiaries’ tax years 2016 through 2020, the US subsidiaries’ tax years 2018 through 2020 and the Hong Kong subsidiaries’ tax years 2015 through 2020 remain open to examination by the respective taxing jurisdictions. |
Deferred Income
Deferred Income | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Income | Note 15 – Deferred Income Sichuan Xinda 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, extended to the Company RMB350 million (equivalent to US$53.6 million) to support the construction of the Sichuan plant, which has been received in full in the form of government repayment of bank loans on behalf of the Company. In addition, the Company has received RMB337.4 million (equivalent to US$51.7 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 RMB7.5 million (equivalent to US$1.1 million) special funds of ministerial key research projects from Ministry of Science and Technology of PRC as of December 31, 2020. The Sichuan factory has been operational since July 2016. The Company also received RMB36.0 million (equivalent to US$5.5 million) from Shunqing Government with respect to interest subsidy for bank loans. A cumulative RMB16.4 million (equivalent to US$2.4 million) government grants have been amortized as other income in line with the amount of related loan interest accrued. HLJ Xinda Group has also received RMB128.0 million (equivalent to US$19.6 million) from Harbin Bureau of Finance to support the construction of the 300,000 metric tons of biological composite materials project in Heilongjiang as of December 31, 2020. A cumulative RMB166.8 million (equivalent to US$25.6 million) government grants have been amortized as other income proportionate to the depreciation of the related assets, of which RMB51.3 million (equivalent to US$7.4 million) was amortized in the twelve-month period ended December 31, 2020. |
Other Non-current Liabilities
Other Non-current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-current Liabilities | Note 16 – Other non-current liabilities December 31, 2020 2019 US$ US$ Income tax payable-noncurrent (i) 75,998,231 86,414,852 Deferred income tax liabilities (Note 13) 3,101,509 4,613,524 Others — — Total other non-current liabilities 79,099,740 91,028,376 (i) Income tax payable-noncurrent represents the repatriation tax, the accumulative balance of unrecognized tax benefits since 2016 and related accrued interest. According to the Tax Cuts and Jobs Act enacted on December 22, 2017, the management recognized the amount of U.S. tax corporate income tax is US$70,965,148 based on the deemed repatriation to the United States of accumulated earnings mandated by the U.S. tax reform, US$22,708,848 of which due payable within one year was classified as current liabilities. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Common Stock | Note 17 – 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, 2020 | |
Equity [Abstract] | |
Preferred Stock | Note 18 – 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 January 1, 2022, 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. On September 26, 2019, the Company delivered an irrevocable notice to MSPEA Modified Plastics Holding Limited, and exercised its right for the mandatory conversion of each outstanding Series D Preferred Stock into 16,000,000 fully paid and nonassessable shares of common stock. As a result, 16,000,000 shares of Series D Preferred Stock were thus converted into 16,000,000 shares of common stock. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Note 19– Noncontrolling interests On January 22, 2020, a third party investor acquired 36.21% and 38.08% of the equity interest of the Company’s two PRC subsidiaries at a consideration of RMB325.0 million (equivalent to US$47.7 million). The Company shall redeem 50% of the equity interest owned by the noncontrolling shareholder on January 21, 2024 and the remaining 50% on January 21, 2025 at a total redemption value of RMB325.0 million. The noncontrolling shareholder was also entitled to an interest at 1.5% per annum. The Company has pledged its 63.79% and 61.92% equity interest of the two subsidiaries to the noncontrolling shareholder as a guarantee for its obligation on the redemption. The mandatorily redeemable noncontrolling interests were recorded as a liability on the financial statements and initially recorded at the fair value of US$45.9 million and were subsequently carried at the present value of the redemption value. In April 2020, the Company increased its capital contribution to one of the subsidiaries, and the equity interest owned by the Company has increased from 61.92% to 65.62%, the equity interest owned by noncontrolling shareholder has decreased from 38.08% to 34.38%. On June 29, 2020, the Company entered into supplementary agreements with the noncontrolling shareholder, pursuant to which, the redemption provision, the 1.5% per annum interest payable to the noncontrolling shareholder and the guarantee provision in the original investment agreements were cancelled. The substantial modification of terms was accounted as an extinguishment with no extinguishment gains or losses recognized. The noncontrolling interest were reclassified as an equity instrument. As of December 31, 2020, the carrying value of the noncontrolling interests was US$50.2 million. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | Note 20 – 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. The 2009 plan was expired by December 31, 2019. On January 10, 2020, the Board of Directors approved the adoption of 2020 Stock Option / Stock Issuance Plan (the “2020 Plan”), under which 13,000,000 shares of common stock are reserved for issuance. The 2020 Plan provides for the grant of stock options and stock issuances to employees, directors and independent contractors who provide services to the Company and/or its affiliates. Nonvested shares On February 20, 2020, the Company’s Board of Directors approved the grant of 3,000,000 non-vested shares to Mr. Jie Han and an employee with a performance condition that the Company or its subsidiaries receive certain amount of bank credit prior to April 30, 2020 and complete certain amount of drawdown from such credit line prior to June 30, 2020. The awards will be forfeited if the performance condition is not met. As of June 30, 2020, the performance condition has not been met and the awards were forfeited. On February 20, 2020, the Company’s Board of Directors approved the grant of 1,000,000 non-vested shares to two nonemployee consultants providing certain financing advisory service for the Company. As of December 31, 2020, the service has not been rendered and the service agreement was cancelled and the awards were forfeited. On August 26, 2020, the Company’s Board of Directors approved the grant of 3,600,000 shares to three executives, one senior management and one consultant for their service to the Company. The shares are vested immediately upon issuance. A summary of the nonvested shares activity for the years ended December 31, 2020 and 2019 is as follows: Number of Nonvested Shares Weighted Average Grant date Fair Value US$ Outstanding as of December 31, 2019 - - Granted 7,600,000 1.34 Vested (3,600,000 ) 1.16 Forfeited (4,000,000 ) 1.50 Outstanding as of December 31, 2020 - - The Company recognized US$4,188,600 and nil compensation expense in general and administrative expenses relating to the non-vested shares for the years ended December 31, 2020 and 2019, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 21 – Earnings per share Basic and diluted earnings per share are calculated as follows: Years Ended December 31, 2020 2019 US$ US$ Numerator: (181,700,885 ) 3,055,478 Net income (loss) attributable to China XD Plastics Company Limited Less: - (536,164 ) Earnings allocated to participating Series D convertible preferred stock - - Net income (loss) for basic and diluted earnings per share (181,700,885 ) 2,519,314 Denominator: Denominator for basic earnings per share 44,733,357 55,200,896 Denominator for diluted earnings per share 44,733,357 55,200,896 Earnings per common share: Basic and diluted earnings per common share (4.06 ) 0.05 The following table summarizes potentially dilutive securities excluded from the calculation of diluted earnings per share for the years ended December 31, 2020 and 2019, because their effects are anti-dilutive: Years Ended December 31, 2020 2019 US$ US$ Numerator: Shares issuable upon conversion of Series D convertible preferred stocks - 11,747,945 |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Statutory Reserves | Note 22 – 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, 2020 and 2019, China XD’s subsidiaries in the PRC made appropriations to the reserve fund of RMB11.7 million (equivalent to US$1.7 million) and RMB26.0 million (equivalent to US$3.8 million), respectively. As of December 31, 2020 and 2019, the accumulated balance of the statutory surplus reserve was RMB358.4 million (equivalent to US$55.1 million) and RMB346.7 million (equivalent to US$53.4 million), respectively. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Risks and Uncertainties | Note 23– Risks and uncertainties Sales concentration The Company sells its products primarily through approved distributors in the People’s Republic of China (the “PRC”). The Company’s sales are concentrated. Sales to distributors individually exceeded 10% of the Company’s revenues, for the years ended December 31, 2020 and 2019, are as follows: (in millions, except percentage) Years Ended December 31, 2020 2019 US$ % US$ % Distributor A, located in PRC 122.3 9.3 % 201.5 13.9 % Any factor adversely affecting the automobile industry in the PRC 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 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 23.2% (two distributors) and 14.7% (one distributor) of the Company’s total raw material purchases for the years ended December 31, 2020 and 2019, 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. Cash concentration Cash, cash equivalents and restricted cash mentioned below maintained at banks consist of the following: December 31, 2020 2019 US$ US$ RMB denominated bank deposits with: Financial Institutions in the PRC 182,687,189 226,488,069 Financial Institutions in Hong Kong Special Administrative Region (“Hong Kong SAR”) 9,422 8,134 Financial institutions in Dubai,UAE 1,231 - U.S. dollar denominated bank deposits with: Financial Institution in the U.S. 25,483 3,057 Financial Institutions in the PRC 859 16,868 Financial Institution in Hong Kong SAR 381,477 590,131 Financial Institution in Macau Special Administrative Region (“Macau SAR”) 150,060 1,288,792 Financial Institution in Dubai, UAE 16,395 4,549 HK dollar denominated bank deposits with: Financial institution in Hong Kong SAR 156 156 Dirham denominated bank deposits with: Financial institution in Dubai, UAE 62,156 33,263 The bank deposits with financial institutions in the PRC are insured by the government authority for up to RMB500,000. The bank deposits with financial institutions in the Hong Kong SAR are insured by the government authority for up to HK$500,000. The bank deposits with financial institutions in the Macau SAR are insured by the government authority for 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 $1,072,301 and $1,063,709 are insured as of December 31, 2020 and 2019, 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 24 – Commitments and contingencies (1) Sichuan plant construction and equipment purchase In September 2016, Sichuan Xinda Enterprise Group Co., Ltd. (“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$2.6 million) to purchase storage facility and testing equipment. Afterward, Sichuan Xinda cancelled two contracts with Hailezi for a consideration of RMB1.6 million (equivalent to US$0.2 million). As of December 31, 2020, Sichuan Xinda has a remaining commitment of RMB3.0 million (equivalent to US$0.5 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 RMB89.5 million (equivalent to US$13.7 million) to purchase certain production and testing equipment. As of December 31, 2020, the Company has a commitment of RMB55.6 million (equivalent to US$8.5 million). On November 15, 2016 and February 20, 2017, Sichuan Xinda entered into decoration contracts with Beijin Construction to perform indoor and outdoor decoration work for a consideration of RMB240.5 million (equivalent to US$36.9 million). On June 10, 2017, Sichuan Xinda entered into another decoration contract with Beijin Construction to perform ground decoration work for a consideration of RMB23.8 million (equivalent to US$3.6 million). As of December 31, 2020, the Company has a remaining commitment of RMB144.7 million (equivalent to US$22.2 million). Pursuant to the Nanchong Project mentioned in Note 9 In connection with the Nanchong Project, on June 21, 2018, Sichuan Xinda entered into equipment purchase contracts with Hailezi to purchase production equipment for a consideration of RMB1,910.5 million (equivalent to US$292.8 million). Pursuant to the contract with Hailezi, Sichuan Xinda has a remaining commitment of RMB198.5 million (equivalent to US$30.4 million) as of December 31, 2020. (2) Heilongjiang plant construction and equipment purchase In connection with the HLJ project mentioned in Note 9, on June 25, 2018 and July 12, 2018, HLJ Xinda Group entered into two equipment purchase contracts with Hailezi to purchase production equipment, which will be used for 300,000 metrics tons of biological based composite material, located in Harbin, for a consideration of RMB1,906.8 million (equivalent to US$282.2 million) and On November 14, 2019, HLJ Xinda Group entered into a supplementary agreement with Hailezi, which decreased the original contract amount to RMB1,780.9 million (equivalent to US$272.9 million) with delivery schedule amended to December 31, 2021. Pursuant to the contracts with Hailezi, HLJ Xinda Group has a remaining commitment of RMB1,214.1 million (equivalent to US$186.1 million) as of December 31, 2020 (3) Dubai equipment purchase On May 31, 2019, Dubai Xinda entered into an equipment purchase contract with Peaceful for a total consideration of US$18.8 million. As of December 31, 2020, the Company has a remaining commitment of US$1.8 million. (4) Xinda CI (Beijing) office building decoration On March 30, 2017, Xinda CI (Beijing) Investment Holding Co., Ltd. (“Xinda Beijing Investment”) entered into a decoration contract with Beijing Fangyuan Decoration Engineering Co., Ltd for a total consideration of RMB5.8 million (equivalent to US$0.9 million) to decorate office building. As of December 3, 2020, the Company has a remaining commitment of RMB3.7 million (equivalent to US$0.6 million). On June 9, 2017, Xinda CI (Beijing) entered into a decoration contract with Beijing Zhonghongwufang Stone Co., Ltd for a total consideration of RMB1.2 million (equivalent to US$0.2 million) to decorate office building. As of December 31, 2020, the Company has a remaining commitment of RMB0.6 million (equivalent to US$0.1 million). (5) Guarantees On April 15, 2019, Sichuan Xinda provided guarantee to Shanghai Sales obtaining a one-year loan of RMB800.0 million (equivalent to US$122.6 million) from Longjiang Bank, Harbin Branch with an annual interest rate of 6.09% from April 15, 2019 to April 14, 2020. If Shanghai Sales does not repay the above loan when due, Sichuan Xinda shall be obliged to repay the RMB800.0 million loan. The loan was repaid by Shanghai Sales in April 2020. On December 3, 2019, HLJ Xinda Group provided guarantee to Macromolecule Composite Materials obtaining a one-year loan of RMB612.2 million (equivalent to US$93.8 million) from Longjiang Bank, Harbin Branch with an annual interest rate of 6.25%. If Macromolecule Composite Materials does not repay the above loan when due, HLJ Xinda Group shall be obliged to repay the RMB612.2 million loan. The loan was repaid early by to Macromolecule Composite Materials in April 2020. On September 28, 2020, Sichuan Xinda provided guarantee to Macromolecule Composite Materials obtaining a three-month loan of RMB700.0 million (equivalent to US$107.3 million) from Longjiang Bank, Harbin Branch with an annual interest rate of 5.95%. If Macromolecule Composite Materials does not repay the above loan when due, Sichuan Xinda shall be obliged to repay the RMB700.0 million loan. (6) Legal proceedings The Company and its board of directors were named as defendants in three below summarized lawsuits in connection with the terminated going-private transaction. There is a possibility that a loss may have been incurred, as the Company is unable to estimate the possible loss or range of loss at this early stage in the case, no loss contingency was accrued as of December 31, 2020. Jagdish Kothari v. China XD Plastics Company Limited et al. (Case No. 2:20-CV-01330) Plaintiff claims that Defendants violated the Securities Exchange Act of 1934 arising out of the proposed buyout of the company by its chairman, Jie Han through his affiliated companies. Plaintiff claims that the proxy provided to the shareholders was materially defective. Plaintiff has filed a second amended complaint and the Company is vigorously defending this matter. It is too early to determine if there will be a favorable outcome. Zhong Hao Feng et al. v. China XD Plastic Company Limited et al. (Case No. A-20-822393-B) Plaintiffs claim that Defendants breached their fiduciary duties to China XD’s public stockholders by agreeing to sell the company for an inadequate $1.20 per share. Plaintiffs claim that the proxy provided to the shareholders was materially false and misleading. Plaintiffs’ have filed a First Amended Complaint and Defendants have filed their Answers to the First Amended Complaint and the Company is vigorously defending this matter. Walter Aerts et al. v. China XD Plastic Company Limited et al. (Case No. !-20-819986-B) Plaintiffs claim that China XD wrongfully entered into a definitive agreement to sell for an unfair price outstanding shares of common stock of the company. Answers have been filed to the Complaint. A five-week jury trial has been set for May 22, 2023 and the Company is vigorously defending this matter. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenues [Abstract] | |
Revenues | Note 25– Revenues Revenues consist of the following products and materials: Years Ended December 31, 2020 2019 US$ US$ Modified Polyamide 66 (PA66) 605,205,395 426,970,992 Modified Polyamide 6 (PA6) 394,022,369 338,252,200 Plastic Alloy 78,422,147 245,295,838 Modified Polypropylene (PP) 74,639,857 126,535,244 Modified Acrylonitrile butadiene styrene (ABS) 24,251,450 50,053,441 Polyoxymethylenes (POM) 4,821,272 6,906,902 Polyphenylene Oxide (PPO) - 32,383,107 Polylactide (PLA) 3,492,236 65,142,028 Polyethylene (PE) 64,583,993 11,546,204 Semi-finished goods 58,782,152 144,378,419 Raw materials 3,680,810 740,451 Total Revenue 1,311,901,681 1,448,204,826 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Impairment of Long-Lived Assets | Note 26 – Impairment of Long-Lived Assets Dubai Xinda experienced a shutdown since the outbreak of COVID-19 in early February, 2020 and difficulties to renew productions in the near future. As the Company was unable to anticipate a business renewal and financial prospect in a short-term, based on the unique property, plant and equipment built for Company’s specific products, the management assessed the quoted market value of Dubai Xinda’s property, plant and equipment, through a third party independent appraisal at a unrealizable value and recorded an one-time impairment charges of US$165.3 million on Company’s property, plant and equipment including construction in progress. Below is a breakdown of the impairment charges for property, plant and equipment: For the year ended US$ Machinery, equipment and furniture 68,147,876 Workshops and buildings 8,826,892 Construction in progress 88,278,641 Total impairment charges 165,253,409 |
Gains and Losses on Disposal of
Gains and Losses on Disposal of Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gains and Losses on Disposal of Subsidiaries | Note 27 – Gains and losses on disposal of subsidiaries On December 18, 2018, HLJ Xinda Group entered into an agreement with Mr. Xiaohui Gao, the General Manager of Shanghai Sales, to transfer the wholly owned equity of Shanghai Sales from HLJ Xinda Group to Mr. Gao for a cash consideration of RMB50.0 million (equivalent to US$7.3 million) as a result of group restructuring to streamline resources and improve operating efficiency. The legal transfer was completed on December 19, 2018 and the Company recorded losses of US$0.2 million on disposal of Shanghai Sales for the year ended December 31, 2018. On November 13, 2018, HLJ Xinda Group entered into an agreement with Shanghai Sales, to transfer the wholly owned equity of Heilongjiang Xinda Enterprise Group (Shanghai) New Materials Research and Development Co., Ltd. (“Shanghai New Materials R&D”) from HLJ Xinda Group to Shanghai Sales with no consideration as a result of group restructuring to streamline resources and improve operating efficiency. The legal transfer was completed on February 1, 2019 and the Company recorded gains of US$0.5 million on disposal of Shanghai New Materials R&D for the year ended December 31, 2019. The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in millions, except gross margin and per share amounts): Fourth Third Second First 2020: Revenues $ 593.8 $ 290.1 $ 283.2 $ 144.8 Gross profit $ 64.0 $ 34.6 $ 39.9 $ 5.2 Net income (loss) $ (150.2 ) $ (38.1 ) $ 17.6 $ (11.0 ) Earnings per share Basic $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Diluted $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Fourth Third Second First 2019: Revenues $ 310.5 $ 373.2 $ 463.1 $ 301.5 Gross profit $ 43.7 $ 60.1 $ 65.3 $ 50.3 Net income $ (65.0 ) $ 17.0 $ 40.1 $ 11.0 Earnings per share Basic $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 Diluted $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | Note 28 – 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 2020 and 2019 (in millions, except gross margin and per share amounts): Fourth Third Second First 2020: Revenues $ 593.8 $ 290.1 $ 283.2 $ 144.8 Gross profit $ 64.0 $ 34.6 $ 39.9 $ 5.2 Net income (loss) $ (150.2 ) $ (38.1 ) $ 17.6 $ (11.0 ) Earnings per share Basic $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Diluted $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Fourth Third Second First 2019: Revenues $ 310.5 $ 373.2 $ 463.1 $ 301.5 Gross profit $ 43.7 $ 60.1 $ 65.3 $ 50.3 Net income $ (65.0 ) $ 17.0 $ 40.1 $ 11.0 Earnings per share Basic $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 Diluted $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Note 29 – 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, 2020 2019 Revenues (in US$ millions) PRC 1,311.9 1,387.0 Dubai, UAE - 61.2 Total 1,311.9 1,448.2 The following summarizes the Company’s Long-lived assets (including property, plant and equipment, net, long-term prepayments to equipment and construction suppliers, other non-current assets and operating lease right-of-use assets, net) from the following geographic areas (based on the location of the operating units): December 31, 2020 2019 Long-lived assets (in US$ millions) PRC 1,161.7 993.2 Dubai, UAE 174.4 377.8 Total 1,336.1 1,371.0 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 30 - Leases As of December 31, 2020, the Company had operating leases for land use rights and office with remaining terms expiring from 2022 through 2085. The weighted average remaining lease term excluding land use rights located in PRC as of December 31, 2020 was 16.3 years. Weighted average discount rate used in the calculation of the lease liabilities was 6.7%. The discount rate reflects the estimated incremental borrowing rate, which includes an assessment of the credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to the lease payments in a similar economic environment. Lease cost for the years ended December 31, 2020 and 2019 is as follows: Years ended December 31, 2020 2019 Operating lease cost 1,703,512 2,307,891 Short-term lease cost 846,060 846,060 Total lease cost 2,549,572 3,153,951 As of December 31, 2020, the maturities of the operating lease liabilities are as follows: Remaining Lease Payments 2021 1,418,719 2022 1,419,085 2023 1,434,926 2024 1,454,238 2025 1,454,238 Thereafter 19,179,416 Total remaining lease payments 26,360,622 Less: imputed interest (10,945,058 ) Total operating lease liabilities 15,415,564 Less: current portion (1,323,164 ) Non-current operating lease liabilities 14,092,400 Weighted-average remaining lease term 16.3 years Weighted-average discount rate 6.7 % Supplemental cash flow information related to leases is as follows: Years ended December 31, 2020 2019 Supplemental disclosure of cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,525,914 2,084,533 Under the previous lease standard (Topic 840), future minimum annual lease payments for the years subsequent to December 31, 2020 and in aggregate are as follows: US$ Years ended December 31, 2021 2,174,439 2022 1,486,007 2023 1,486,007 2024 1,446,251 2025 1,482,593 Thereafter 21,176,139 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 31 - Subsequent Events On January 15, 2021, Xinda CI (Beijing) Investment Holding Co., Ltd. (“Xinda Beijing Investment”) signed a building selling contract with a third party Harbin Fangge Trading Co., Ltd. for disposing its one floor building for a consideration of RMB58.3 million (equivalent to US$8.9 million). On February 7, 2021, Xinda Beijing Investment received the proceeds in full and recorded a loss of RMB4.5 million (equivalent to US$0.7 million ) accordingly. On September 29, 2021, HLJ Xinda Group entered into a loan agreement with Longjiang Bank, Harbin to borrow a one-year loan of RMB200.1 million (equivalent to US$30.7 million) as working capital, with maturity date on September 28, 2022 and interest rate of 3.85% per annum. On September 30, 2021, HLJ Xinda Group withdrew the loan in full amount. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of presentation, significant concentrations and risks [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. |
Non-controlling Interests | (c) Non-controlling interests Non-controlling interests represent non-controlling shareholders’ 36.21% and 34.38% ownership interest in the two PRC entities as of December 31, 2020. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of operations and comprehensive income as an allocation of the total income or loss for the year ended December 31, 2020 between non-controlling interest holders and the shareholders of the Company. |
Use of Estimates | (d) 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 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 long-term assets, including 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, realizability of deferred tax assets, the accruals for tax uncertainties and other contingencies, and the discount rate used to determine the present value of the lease payments. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. |
Foreign Currency | (e) 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$. The functional currency of China XD’s subsidiaries in the PRC is Renminbi (RMB). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gain or loss in the consolidated statements of comprehensive income (loss). Assets and liabilities of subsidiaries with functional currencies other than US$ 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 income (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 | (f) Cash and cash equivalents, time deposits and restricted cash Cash and cash equivalents consist 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. 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. |
Accounts Receivable | (g) 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 | (h) 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 | (i) 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. |
Impairment of Long-lived Assets | (j) Impairment of Long-lived Assets Long-lived assets, such as property, plant and equipment, and operating lease right-of-use assets, 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. Impairment charges of US$165.3 million were recognized for long-lived assets during the year ended December 31, 2020 (See Note 26). |
Revenue Recognition | (k) Revenue Recognition The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), which requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following steps to recognize revenues: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customers, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. The Company sells its products primarily to the distributors and to a lesser extent to the direct customers. For sales in the People’s Republic of China (“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 control 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 the overseas customers, delivery of the products occurs at the point in time the product is delivered to the named port of shipment, which is when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, 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 customer is required to pay under normal sales terms. The Company’s normal payment terms in most cases are 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. Incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges 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. Outbound freight and Handling costs: The company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in costs of goods sold in the period in which it sells the product. Disaggregation of Revenues: The company manufactures and sells modified plastics primarily for automotive applications in China and to a lesser extent, in Dubai, United Arab Emirates (“UAE”). The Company disaggregates revenue based on its major customer grouping as this category represents the most appropriate depiction of how the nature, amount, and timing of revenues and cash flows are affected by economic factors. Sales by major customer group are as follows: Distributors Direct customers Others The following tables provide sales by major customer group for years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 US$ US$ Distributors 911,267,251 1,200,582,840 Direct customers 400,634,430 246,881,535 Others - 740,451 Total 1,311,901,681 1,448,204,826 |
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 represent 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 (loss). 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 (loss) 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 (loss) 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 (loss). |
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 (loss) when the related service is provided. For the years ended December 31, 2020 and 2019, the costs of the Company’s contributions to the defined contribution plans amounted to US$1,109,658 and US$2,236,528, respectively. For the years ended December 31, 2020 and 2019, 49% and 52% 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 considers 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 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, 2020 and 2019. 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, accounts receivable, amounts due from a related party, short-term bank loans, bills payable, accounts payable, amounts due to related parties 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 option contracts-fair values are determined using Black-Scholes model. It considers the following significant inputs: risk-free rate, foreign exchange rate and volatility. |
Recently Issued Accounting Standards | (x) Recently Issued Accounting Standards In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The Company has adopted the standard on January 1, 2019, and there was no material impact on its consolidated financial statements as a result of the adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The new guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee awards will apply to non-employee share-based transactions with limited exceptions. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The Company has adopted the standard on January 1, 2019, and there was no material impact on its consolidated financial statements as a result of the adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses for financial assets. In October 2019, the FASB issued ASU 2019-10, which amended the effective dates that were originally required by ASU 2016-13 for certain entities. The Company determined it was eligible as a smaller reporting company (SRC) under the SEC’s definition based on an its most recent SRC determination as of November 15, 2019 in accordance with SEC regulations and will adopt ASU 2016-13 on January 1, 2023. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. The Company has adopted the standard on January 1, 2020, and there was no material impact on its consolidated financial statements as a result of the adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes . In November 2019, the FASB issued ASU 2019-10, “Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASU 2019-10”). ASU 2019-10 (i) provides a framework to stagger effective dates for future major accounting standards and (ii) amends the effective dates for certain major new accounting standards to give implementation relief to certain types of entities. Specifically, ASU 2019-10 changes some effective dates for certain new standards on the following topics in the FASB Accounting Standards Codification (ASC): (a) Derivatives and Hedging (ASC 815) – now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (b) Leases (ASC 842) - now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021; (c) Financial Instruments — Credit Losses (ASC 326) - now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; and (d) Intangibles — Goodwill and Other (ASC 350) - now effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect the cumulative effect resulting from the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2020, the FASB issued ASU 2020-02, “Financial Instruments – Credit Losses (Topic 326) and Leases (topic 842) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (topic 842)”. This ASU provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. This ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of presentation, significant concentrations and risks [Abstract] | |
Schedule of Estimated Useful Life of Property, Plant and Equipment | 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 |
Schedule of Provide Sales by Major Customer Group | The following tables provide sales by major customer group for years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 US$ US$ Distributors 911,267,251 1,200,582,840 Direct customers 400,634,430 246,881,535 Others - 740,451 Total 1,311,901,681 1,448,204,826 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Schedule of Restricted Cash | Below is restricted cash pledged for: December 31, 2020 2019 US$ US$ Bills payable relating to purchases of raw materials 95,413,051 151,498,873 Letter of credit 7,544,223 - Syndicated loans - 58,229,047 Short-term bank loans 1,532,591 1,433,445 Government grant 553,534 69,879 Others 29,350 - Total restricted cash 105,072,749 211,231,244 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: December 31, 2020 2019 US$ US$ Accounts receivable 488,974,750 284,921,071 Allowance for doubtful accounts (65,027,875 ) (62,849,018 ) Accounts receivable, net 423,946,875 222,072,053 |
Schedule of Allowance for Doubtful Accounts | The movements of the allowance for doubtful accounts are as follows: December 31, 2020 2019 US$ US$ Balance at the beginning of the year (62,849,018 ) (38,516 ) Provision (2,433,402 ) (62,811,125 ) Effect of foreign currency exchange rate changes 254,545 623 Balance at the end of the year (65,027,875 ) (62,849,018 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2020 2019 US$ US$ Raw materials and semi-finished goods 560,879,015 637,278,817 Finished goods 17,056,219 5,230,717 Total inventories 577,935,234 642,509,534 |
Prepaid Expense and Other Asset
Prepaid Expense and Other Assets Current (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 US$ US$ Advances to suppliers (i) 143,247,078 118,166,925 Value added taxes receivables (ii) 9,485,514 6,239,719 Receivables from Hong Kong Grand Royal Trading Co., Ltd. (iii) - 42,566,949 Interest receivable (iv) 377,080 615,049 Others (v) 5,493,162 4,259,480 Total prepaid expenses and other current assets 158,602,834 171,848,122 (i) Advances to suppliers are the advances to purchase raw materials. (ii) Value added taxes receivables mainly represent the input taxes on purchasing equipment by Heilongjiang Xinda Enterprise Group Company Limited (“HLJ Xinda Group”) and Sichuan Xinda Enterprise Group Company Limited (“Sichuan Xinda”), Heilongjiang Xinda Marcromolecule Composite Materials, and Heilongjiang Xinda Bio-Based Composite Materials Company Ltd. (“Xinda Bio-Based Composite Materials”), which are to be net off with output taxes. Value added taxes receivables were recognized in operating activities in consolidated statements of cash flows. (iii) Hong Kong Grand Royal Trading Co., Ltd. (“Hong Kong Grand Royal”) is a raw material supplier of AL Composites Materials FZE (“Dubai Xinda”). Dubai Xinda has prepaid US$48.2 million to Hong Kong Grand Royal in 2017 for purchase of raw materials. Due to the price fluctuation of raw materials, Hong Kong Grand Royal could not purchase and deliver the raw materials to Dubai Xinda. In July 2019, both parties entered into a supplemental agreement to cancel the original purchase agreements and Hong Kong Grand Royal shall settle the advance payment. The US$42.6 million advance payment as of December 31, 2019 was settled during the year ended December 31, 30, 2020. (iv) Interest receivable mainly represents interest income accrued from time deposits and restricted cash. (v) Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: December 31, 2020 2019 US$ US$ Machinery, equipment and furniture 548,087,086 575,317,840 Motor vehicles 2,232,982 1,709,182 Workshops and buildings 153,585,519 156,256,761 Construction in progress 386,022,110 335,245,525 Total property, plant and equipment 1,089,927,697 1,068,529,308 Less: accumulated depreciation (311,121,721 ) (238,209,592 ) Property, plant and equipment, net 778,805,976 830,319,716 |
Schedule 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, 2020 2019 US$ US$ Cost of revenues 56,344,017 52,691,430 General and administrative expenses 2,505,195 2,949,915 Research and development expenses 2,477,689 3,770,983 Selling expenses 2,855 4,346 Total depreciation expense 61,329,756 59,416,674 |
Prepayments to Equipment and _2
Prepayments to Equipment and Construction Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments to equipment suppliers [Abstract] | |
Schedule of Prepayments to Equipment and Construction Suppliers | December 31, 2020 2019 US$ US$ Hailezi (i) 485,504,105 468,529,714 Beijin Construction (ii) 7,537,793 6,795,439 Peaceful Treasure Limited(iii) — 19,967,014 Xinda High-Tech (iv) 18,437,064 — Others 569,897 278,254 Total prepayments to equipment and construction suppliers 512,048,859 495,570,421 |
Schedule of Balance of Prepayments | The table below summarized the balance of prepayments to Hailezi for each of the projects as of December 31, 2020 and 2019, and the movements of the prepayments: (in millions US$) Year Projects Balance as of December 31, 2019 Prepaid in 2020 Transfer to CIP in 2020 Effect of foreign currency exchange rate changes Balance as of December 31, 2020 2017 Storage system $ 36.7 $ - $ (5.8 ) $ 1.7 $ 32.6 2017 HLJ Project 5.9 - (5.9 ) - - 2018 HLJ Project 77.4 28.1 (109.4 ) 3.9 - 2017 Nanchong Project 3.0 - (3.0 ) - - 2018 Nanchong Project 245.1 0.2 (3.8 ) - 241.5 2019 Qinling Road Project 18.6 5.0 (24.8 ) 1.2 - 2019 Jiangnan Road Project(300,000 metric tons) 81.8 - - 1.0 82.8 2020 Jiangnan Road Project Phase II - 98.4 - - 98.4 2020 HLJ Project-Phase II - 10.0 - - 10.0 2020 HLJ Project-Phase III - 19.9 - - 19.9 2020 Others - 3.2 (2.9 ) - 0.3 Total $ 468.5 $ 164.8 $ (155.6 ) $ 7.8 $ 485.5 |
Loan Receivables-Non Current (T
Loan Receivables-Non Current (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Schedule of Loan Receivables Non-Current | December 31, 2020 2019 US$ US$ Shanghai Sales 133,466,679 - Macromolecule Composite Materials 68,099,128 - Peiqu International 40,534,289 - Total loan receivables-non current 242,100,096 - |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Loans | December 31, 2020 2019 US$ US$ Unsecured loans 480,957,562 407,657,464 Loans secured by accounts receivable (i) - 64,505,031 Guaranteed loan (ii) 36,536,958 — Loans secured by restricted cash (iii) 15,325,905 14,334,451 Syndicated loan facility (iv) - 128,020,559 Loan secured by inventories (v) 12,260,724 5,733,781 Current portion of long-term bank loans (note b) 98,521,394 59,923,573 Total short-term loans, including current portion of long-term bank loans 643,602,543 680,174,859 As of December 31, 2020 and 2019, the Company’s short-term bank loans (including the current portion of long-term bank loans) bear a weighted average interest rate of 5.2% and 5.0% per annum, respectively. All short-term bank loans mature at various times within one year and contain no renewal terms. (i) As of December 31, 2020 and 2019, the Company had nil and US$64.5 million of short-term bank loans obtained from Longjiang Bank secured by accounts receivables of nil and US$92.2 million, respectively. (ii) In January 2019, Sichuan Xinda obtained a one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. Pursuant to the extension agreement dated January 2020, the loan maturity date was extended to July 2020 with a third-party guarantee provided by Nanchong Shuntou Development Group Co., Ltd. (“Shuntou”). Pursuant to the loan contract, the ratio of liabilities to assets of Sichuan Xinda shall not exceed 55%. The loan was repaid in July 2020. In July 2020, Sichuan Xinda obtained a new one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. As of December 31, 2020, the Company repaid RMB11.6 million (equivalent to US$1.8 million). (iii) As of December 31, 2020 and 2019, the Company had US$15.3 million and US$14.3 million of short-term bank loans secured by restricted cash of US$1,532,591 and US$1.4 million, respectively. (iv) On October 2, 2019, Xinda Holding (HK) Company Limited (“Xinda Holding (HK)”), a wholly owned subsidiary of the Company, entered into a facility agreement for a one-year loan facility due on December 15,2020 in an aggregate amount of US$135.0 million with a consortium of banks and financial institutions led by Industrial and Commercial Bank of China (Macau) Limited. The Company made the drawdown on December 18, 2019. The interest rate of the loan is 2.0% plus three-month LIBOR. The Company incurred agency fee and arrangement fee in the amount of US$7.2 million for the loan and without unamortized balance as of December 31, 2020. Loan 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 9.21% as of December 16, 2020. Xinda Holding (HK) made a full repayment of US$135.0 million on December 16, 2020. (v) In November 2019, the Company obtained a one-year short-term loan of RMB40.0 million (equivalent to US$5.9 million) from Bank of Inner Mongolia, pledged by inventories in amount of approximately US$39.1 million for the above loan and bills payable in amount of RMB142.0 million (equivalent to US$20.9 million) issued by Bank of Inner Mongolia. On October 20, 2020, the Company repaid the loan in full. |
Schedule of Long-Term Debt | December 31, 2020 2019 US$ US$ Secured loans (i) 585,890,017 1,742,389 Unsecured loans (ii) 239,924,794 380,637,597 Less: current portion (98,521,394 ) (59,923,573 ) Total long-term bank loans, excluding current portion 727,293,417 322,456,413 |
Schedule of Maturities on Long-Term Bank Loans | Maturities on long-term bank loans (including current portion) are as follows: December 31, 2020 US$ Year ended December 31, 2021 316,483,751 2022 49,320.936 2023 158,405,133 2024 39,683,782 After 2025 163,399,815 Total 727,293,417 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2020 2019 US$ US$ Payables for purchase of property, plant and equipment 21,778,463 12,445,494 Accrued freight expenses 23,898,196 17,665,998 Accrued interest expenses 10,337,622 15,650,965 Contract liabilities (i) 15,633,147 17,922,160 Accrued payroll and benefits 9,633,072 10,882,901 Non income tax payables 7,804,449 6,056,024 Others (ii) 22,837,214 5,926,846 Total accrued expenses and other current liabilities 111,922,163 86,550,388 (i) Contract liabilities mainly represent the advance received from customers in the PRC for the finished goods and raw materials purchases. The change in contract liabilities primarily represents the cash received, less amounts recognized as revenues during the period. (ii) Others mainly represent 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, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The related party transactions are summarized as follows: Years Ended December 31, 2020 2019 US$ US$ Revenues resulting from transactions with a related party: Sales to Macromolecule Composite Materials (i) - 1,040,485 Financing transactions with related parties: Interest-free advances from Mr. Jie Han (the Chairman and Chief Executive Officer) 405,536 2,920,049 Repayment of interest-free advances from Mr. Jie Han - (116,802 ) Interest-free advances from Mr. Jie Han’s son - 8,760,147 Repayment of interest-free advances from Mr. Jie Han’s wife (2,667,594 ) - Repayment of interest-free advances from Mr. Jie Han’s Son (9,423,568 ) - Interest-free advances from Mr. Qingwei Ma (Chief Operating Officer) 3,570,862 9,425,891 Repayment of interest-free advances from Mr. Qingwei Ma (1,565,762 ) (8,265,781 ) Interest-free advances from Mr. Xin Yang (CFO of HLJ Xinda Group) 9,198,107 - Interest-free advances from senior management employees of HLJ Xinda Group and Sichuan Xinda - 275,234 Repayment of interest-free advances from senior management employees in HLJ Xinda Group and Sichuan Xinda - (4,679,484 ) Interest-free advances from Macromolecule Composite Materials (i) - 63,488,212 Repayment of interest-free advances from Macromolecule Composite Materials - (63,017,445 ) Net financing transactions with related parties 482,389 8,790,021 (i) On December 26, 2018, Heilongjiang Xinda Enterprise Group Shanghai New Materials Sales Company Limited (“Shanghai Sales”), |
Schedule of Related Parties Balances | The related party balances are summarized as follows: December 31, 2020 2019 Amounts due from a related party: US$ US$ Mr. Qingwei Ma Chief Operating Officer) 941,462 - |
Schedule of Due to Related Parties | Amount due from Mr. Qingwei Ma was employee advance to be reimbursed. December 31, 2020 2019 US$ US$ Amounts due to related parties: Mr. Jie Han 13,973,332 12,499,642 Mr. Jie Han’s wife 500,000 3,137,539 Mr. Jie Han’s son - 9,317,393 Mr. Qingwei Ma ( Chief Operating Officer) - 1,146,756 Mr. Xin Yang (CFO of HLJ Xinda Group) 9,198,108 - Senior management employee in HLJ Xinda GroupXinda - 150,589 Total amounts due to related parties 23,671,440 26,251,919 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows: Years Ended December 31, 2020 2019 US$ US$ US (2,792,888 ) (1,870,587 ) BVI (3,313 ) (47 ) Hong Kong SAR (12,297,593 ) (16,295,949 ) Dubai (209,419,631 ) (52,773,153 ) PRC, excluding Hong Kong SAR 48,572,168 88,031,912 Total income (loss) before income taxes (175,941,257 ) 17,092,176 |
Schedule of Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) recognized in the consolidated statements of comprehensive income (loss) consists of the following: Years Ended December 31, 2020 2019 US$ US$ Current income tax expense-PRC 9,472,088 15,625,998 Current income tax expense-US - 428,523 Deferred income tax benefit-PRC (3,712,458 ) (2,017,823 ) Total income tax expense 5,759,630 14,036,698 |
Schedule of Effective Income Tax Rate | The effective income tax rate based on income tax expense and income before income taxes reported in the consolidated statements of comprehensive income (loss) differs from the PRC statutory income tax rate of 25% due to the following: Years Ended December 31, 2020 2019 US$ US$ PRC statutory income tax rate 25 % 25 % Increase (decrease) in effective income tax rate resulting from: Tax rate differential on entities not subject to PRC income tax (107.8 )% 85.0 % Non-deductible expenses 10.0 % 10.0 % Preferential tax rate 10.8 % (16.7 )% Change in valuation allowance 36.1 % 23.3 % R&D additional deduction 38.0 % (49.5 )% Reversal of unrealized tax benefits (21.4 )% (21.4 )% True-up prior year’s tax filing (4.2 )% 16.2 % Others 10.2 % 10.2 % Effective income tax rate (3.3 )% 82.1 % |
Schedule 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, 2020 2019 US$ US$ Deferred income tax assets: Tax loss carry forwards 33,524,819 14,313,575 Impairment of prepayment in relation to equipment and construction in progress 778,943 — Less: valuation allowance (33,524,819 ) (14,313,575 ) Deferred income tax assets, net 778,943 — Deferred income tax liabilities (included in other non-current liabilities): Property, plant and equipment 3,101,509 4,613,524 |
Schedule of Movements of Valuation Allowance | The movements of the valuation allowance are as follows: Years Ended December 31, 2020 2019 US$ US$ Balance at the beginning of the year 14,313,575 10,559,911 Additions of valuation allowance 19,211,244 3,983,094 Reduction of valuation allowance - (229,430 ) Balance at the end of the year 33,524,819 14,313,575 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Years Ended December 31, 2020 2019 US$ US$ Balance at the beginning of the year 34,706,069 33,048,639 Increase related to current year tax positions 5,775,068 5,279,589 Decrease related to prior year tax positions (5,720,163 ) (3,622,159 ) Effect of foreign currency change 4,542,637 - Balance at the end of the year 37,071,419 34,706,069 |
Other Non-current Liabilities (
Other Non-current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Non-current Liabilities | December 31, 2020 2019 US$ US$ Income tax payable-noncurrent (i) 75,998,231 86,414,852 Deferred income tax liabilities (Note 13) 3,101,509 4,613,524 Others — — Total other non-current liabilities 79,099,740 91,028,376 (i) Income tax payable-noncurrent represents the repatriation tax, the accumulative balance of unrecognized tax benefits since 2016 and related accrued interest. According to the Tax Cuts and Jobs Act enacted on December 22, 2017, the management recognized the amount of U.S. tax corporate income tax is US$70,965,148 based on the deemed repatriation to the United States of accumulated earnings mandated by the U.S. tax reform, US$22,708,848 of which due payable within one year was classified as current liabilities. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Nonvested Share Activity | A summary of the nonvested shares activity for the years ended December 31, 2020 and 2019 is as follows: Number of Nonvested Shares Weighted Average Grant date Fair Value US$ Outstanding as of December 31, 2019 - - Granted 7,600,000 1.34 Vested (3,600,000 ) 1.16 Forfeited (4,000,000 ) 1.50 Outstanding as of December 31, 2020 - - |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows: Years Ended December 31, 2020 2019 US$ US$ Numerator: (181,700,885 ) 3,055,478 Net income (loss) attributable to China XD Plastics Company Limited Less: - (536,164 ) Earnings allocated to participating Series D convertible preferred stock - - Net income (loss) for basic and diluted earnings per share (181,700,885 ) 2,519,314 Denominator: Denominator for basic earnings per share 44,733,357 55,200,896 Denominator for diluted earnings per share 44,733,357 55,200,896 Earnings per common share: Basic and diluted earnings per common share (4.06 ) 0.05 |
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, 2020 and 2019, because their effects are anti-dilutive: Years Ended December 31, 2020 2019 US$ US$ Numerator: Shares issuable upon conversion of Series D convertible preferred stocks - 11,747,945 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Schedule of Sales Concentration Revenue Percentage | Sales to distributors individually exceeded 10% of the Company’s revenues, for the years ended December 31, 2020 and 2019, are as follows: (in millions, except percentage) Years Ended December 31, 2020 2019 US$ % US$ % Distributor A, located in PRC 122.3 9.3 % 201.5 13.9 % |
Schedule of Cash, Cash Equivalents and Restricted Cash at Bank | Cash, cash equivalents and restricted cash mentioned below maintained at banks consist of the following: December 31, 2020 2019 US$ US$ RMB denominated bank deposits with: Financial Institutions in the PRC 182,687,189 226,488,069 Financial Institutions in Hong Kong Special Administrative Region (“Hong Kong SAR”) 9,422 8,134 Financial institutions in Dubai,UAE 1,231 - U.S. dollar denominated bank deposits with: Financial Institution in the U.S. 25,483 3,057 Financial Institutions in the PRC 859 16,868 Financial Institution in Hong Kong SAR 381,477 590,131 Financial Institution in Macau Special Administrative Region (“Macau SAR”) 150,060 1,288,792 Financial Institution in Dubai, UAE 16,395 4,549 HK dollar denominated bank deposits with: Financial institution in Hong Kong SAR 156 156 Dirham denominated bank deposits with: Financial institution in Dubai, UAE 62,156 33,263 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenues [Abstract] | |
Schedule of Revenue | Revenues consist of the following products and materials: Years Ended December 31, 2020 2019 US$ US$ Modified Polyamide 66 (PA66) 605,205,395 426,970,992 Modified Polyamide 6 (PA6) 394,022,369 338,252,200 Plastic Alloy 78,422,147 245,295,838 Modified Polypropylene (PP) 74,639,857 126,535,244 Modified Acrylonitrile butadiene styrene (ABS) 24,251,450 50,053,441 Polyoxymethylenes (POM) 4,821,272 6,906,902 Polyphenylene Oxide (PPO) - 32,383,107 Polylactide (PLA) 3,492,236 65,142,028 Polyethylene (PE) 64,583,993 11,546,204 Semi-finished goods 58,782,152 144,378,419 Raw materials 3,680,810 740,451 Total Revenue 1,311,901,681 1,448,204,826 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Schedule of Impairment Charges for Property, Plant and Equipment | Below is a breakdown of the impairment charges for property, plant and equipment: For the year ended US$ Machinery, equipment and furniture 68,147,876 Workshops and buildings 8,826,892 Construction in progress 88,278,641 Total impairment charges 165,253,409 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quartely Financial Information | The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in millions, except gross margin and per share amounts): Fourth Third Second First 2020: Revenues $ 593.8 $ 290.1 $ 283.2 $ 144.8 Gross profit $ 64.0 $ 34.6 $ 39.9 $ 5.2 Net income (loss) $ (150.2 ) $ (38.1 ) $ 17.6 $ (11.0 ) Earnings per share Basic $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Diluted $ (2.13 ) $ (0.56 ) $ 0.26 $ (0.16 ) Fourth Third Second First 2019: Revenues $ 310.5 $ 373.2 $ 463.1 $ 301.5 Gross profit $ 43.7 $ 60.1 $ 65.3 $ 50.3 Net income $ (65.0 ) $ 17.0 $ 40.1 $ 11.0 Earnings per share Basic $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 Diluted $ (0.97 ) $ 0.25 $ 0.60 $ 0.16 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue 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, 2020 2019 Revenues (in US$ millions) PRC 1,311.9 1,387.0 Dubai, UAE - 61.2 Total 1,311.9 1,448.2 |
Schedule of Long-Lived Assets | The following summarizes the Company’s Long-lived assets (including property, plant and equipment, net, long-term prepayments to equipment and construction suppliers, other non-current assets and operating lease right-of-use assets, net) from the following geographic areas (based on the location of the operating units): December 31, 2020 2019 Long-lived assets (in US$ millions) PRC 1,161.7 993.2 Dubai, UAE 174.4 377.8 Total 1,336.1 1,371.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease cost for the years ended December 31, 2020 and 2019 is as follows: Years ended December 31, 2020 2019 Operating lease cost 1,703,512 2,307,891 Short-term lease cost 846,060 846,060 Total lease cost 2,549,572 3,153,951 |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2020, the maturities of the operating lease liabilities are as follows: Remaining Lease Payments 2021 1,418,719 2022 1,419,085 2023 1,434,926 2024 1,454,238 2025 1,454,238 Thereafter 19,179,416 Total remaining lease payments 26,360,622 Less: imputed interest (10,945,058 ) Total operating lease liabilities 15,415,564 Less: current portion (1,323,164 ) Non-current operating lease liabilities 14,092,400 Weighted-average remaining lease term 16.3 years Weighted-average discount rate 6.7 % |
Schedule of Supplemental of Cash Flow Information | Supplemental cash flow information related to leases is as follows: Years ended December 31, 2020 2019 Supplemental disclosure of cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,525,914 2,084,533 |
Schedule of Future Minimum Annual Lease Payments | Under the previous lease standard (Topic 840), future minimum annual lease payments for the years subsequent to December 31, 2020 and in aggregate are as follows: US$ Years ended December 31, 2021 2,174,439 2022 1,486,007 2023 1,486,007 2024 1,446,251 2025 1,482,593 Thereafter 21,176,139 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020USD ($)Integer | Dec. 31, 2019USD ($) | |
Impairment charges recognized for long-lived assets | $ 165,300,000 | |
Company contributions for employee benefit plans | $ 1,109,658 | $ 2,236,528 |
Employers contribution percentage | 49.00% | |
Number of operating segments | Integer | 1 | |
Minimum [Member] | ||
Employers contribution percentage | 5.00% | |
Peoples Republic of China [Member] | Minimum [Member] | ||
Noncontrolling interest, ownership percentage | 36.21% | |
Peoples Republic of China [Member] | Maximum [Member] | ||
Noncontrolling interest, ownership percentage | 34.38% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Provide Sales by Major Customer Group (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||||||
Total Revenue | $ 593,800,000 | $ 290,100,000 | $ 283,200,000 | $ 144,800,000 | $ 310,500,000 | $ 373,200,000 | $ 463,100,000 | $ 301,500,000 | $ 1,311,901,681 | $ 1,448,204,826 |
Distributors [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Total Revenue | 911,267,251 | 1,200,582,840 | ||||||||
Direct Customers [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Total Revenue | 400,634,430 | 246,881,535 | ||||||||
Others [Member] [Default Label] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Total Revenue | $ 740,451 |
Liquidity (Details Narrative)
Liquidity (Details Narrative) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Working capital | $ 114,500,000 | $ 114,500,000 | $ 114,500,000 | ||||||||||||
Lease amount | 26,300,000 | 26,300,000 | 26,300,000 | ||||||||||||
Lessee, operating lease, liability to be paid | 1,418,719 | 1,418,719 | 1,418,719 | ||||||||||||
Payments to acquire machinery and equipment | 250,200,000 | ||||||||||||||
Long-term bank loan | 727,300,000 | 727,300,000 | 727,300,000 | ||||||||||||
Taxes payable, amount | 107,800,000 | 107,800,000 | 107,800,000 | ||||||||||||
Accrued income taxes, current | 36,078,226 | $ 26,458,837 | 36,078,226 | $ 26,458,837 | 36,078,226 | $ 26,458,837 | |||||||||
Net Income (loss) | (150,200,000) | $ (38,100,000) | $ 17,600,000 | $ (11,000,000) | (65,000,000) | $ 17,000,000 | $ 40,100,000 | $ 11,000,000 | (181,700,885) | 3,055,478 | (181,700,885) | 3,055,478 | |||
Impairment charges | 165,300,000 | ||||||||||||||
Net cash provided by operating activities | (3,021,957) | (189,928,239) | |||||||||||||
Cash and cash equivalents value | 105,072,749 | 105,072,749 | 105,072,749 | ||||||||||||
Retained earnings accumulated deficit | 538,357,103 | 720,159,368 | 538,357,103 | 720,159,368 | 538,357,103 | 720,159,368 | |||||||||
Accounts receivable | 423,946,875 | $ 222,072,053 | 423,946,875 | $ 222,072,053 | 423,946,875 | $ 222,072,053 | |||||||||
Collected receivable | 410,800,000 | 410,800,000 | 410,800,000 | ||||||||||||
Line of credit facility | 1,711,200,000 | 1,711,200,000 | 1,711,200,000 | $ 214,600,000 | |||||||||||
Unused line of credit | 107,000,000 | ||||||||||||||
Longjiang Bank [Member] | |||||||||||||||
Working capital | $ 30,700,000 | $ 30,700,000 | $ 30,700,000 | ||||||||||||
RMB [Member] | |||||||||||||||
Line of credit facility | ¥ | ¥ 11,165,700,000 | ||||||||||||||
RMB [Member] | Longjiang Bank [Member] | |||||||||||||||
Working capital | ¥ | ¥ 200,000,000 | ||||||||||||||
RMB [Member] | Subsequent Event [Member] | |||||||||||||||
Line of credit facility | ¥ | ¥ 1,400,000 |
Restricted Cash (Details Narrat
Restricted Cash (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted cash | $ 105,072,749 | $ 211,231,244 |
Short-term bank | 643,602,543 | 680,174,859 |
Short-term bank deposits [Member] | ||
Restricted cash | 95,413,051 | 151,498,873 |
Short-term bank deposits [Member] | Government Grant [Member] | ||
Short-term bank | 553,534 | 69,879 |
Short-term bank deposits [Member] | Letter of Credit [Member] | ||
Short-term bank | 7,544,223 | |
Short-term bank deposits [Member] | Industrial and Commercial Bank of China [Member] | ||
Restricted cash | $ 58,229,047 | |
Short-term bank | $ 135,000,000 |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Tota Restricted cash | $ 105,072,749 | $ 211,231,244 |
Bills Payable Relating to Purchases of Raw Materials [Member] | ||
Tota Restricted cash | 95,413,051 | 151,498,873 |
Letter of Credit [Member] | ||
Tota Restricted cash | 7,544,223 | |
Syndicated Loans [Member] | ||
Tota Restricted cash | 58,229,047 | |
Short-Term Bank Loans [Member] | ||
Tota Restricted cash | 1,532,591 | 1,433,445 |
Government Grant [Member] | ||
Tota Restricted cash | 553,534 | 69,879 |
Others [Member] | ||
Tota Restricted cash | $ 29,350 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | $ 423,946,875 | $ 222,072,053 | |
Short-term bank loans | 92,198,221 | ||
Allowance for doubtful accounts | 65,027,875 | 62,849,018 | $ 38,516 |
UAE [Member] | |||
Accounts receivable | 62,800,000 | ||
Allowance for doubtful accounts | 62,800,000 | ||
Two Customer [Member] | UAE [Member] | |||
Accounts receivable | 2,000,000 | ||
One Customer [Member] | PRC [Member] | |||
Accounts receivable | 200,000 | ||
Two Customer [Member] | |||
Allowance for doubtful accounts | 2,200,000 | ||
Notes Receivable [Member] | |||
Accounts receivable | $ 93,468 | $ 107,845 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable - Schedule Of Accounts Receivable | |||
Accounts receivable | $ 488,974,750 | $ 284,921,071 | |
Allowance for doubtful accounts | (65,027,875) | (62,849,018) | $ (38,516) |
Accounts receivable, net | $ 423,946,875 | $ 222,072,053 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable - Schedule Of Allowance For Doubtful Accounts | ||
Balance at the beginning of the year | $ (62,849,018) | $ (38,516) |
Provision | (2,433,402) | (62,811,125) |
Effect of foreign currency exchange rate changes | 254,545 | 623 |
Balance at the end of the year | $ (65,027,875) | $ (62,849,018) |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Pledged inventories amount | $ 20,900,000 | $ 40,100,000 |
Inventory write-down | $ 4,036 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and semi-finished goods | $ 560,879,015 | $ 637,278,817 |
Finished goods | 17,056,219 | 5,230,717 |
Total inventories | $ 577,935,234 | $ 642,509,534 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Assets Current (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Advances to suppliers | [1] | $ 143,247,078 | $ 118,166,925 |
Value added taxes receivables | [2] | 9,485,514 | 6,239,719 |
Receivables from Hong Kong Grand Royal Trading Co., Ltd | [3] | 42,566,949 | |
Interest receivable | [4] | 377,080 | 615,049 |
Others | [5] | 5,493,162 | 4,259,480 |
Total prepaid expenses and other current assets | $ 158,602,834 | $ 171,848,122 | |
[1] | Advances to suppliers are the advances to purchase raw materials. | ||
[2] | Value added taxes receivables mainly represent the input taxes on purchasing equipment by Heilongjiang Xinda Enterprise Group Company Limited ("HLJ Xinda Group") and Sichuan Xinda Enterprise Group Company Limited ("Sichuan Xinda"), Heilongjiang Xinda Marcromolecule Composite Materials, and Heilongjiang Xinda Bio-Based Composite Materials Company Ltd. ("Xinda Bio-Based Composite Materials"), which are to be net off with output taxes. Value added taxes receivables were recognized in operating activities in consolidated statements of cash flows. | ||
[3] | Hong Kong Grand Royal Trading Co., Ltd. ("Hong Kong Grand Royal") is a raw material supplier of AL Composites Materials FZE ("Dubai Xinda"). Dubai Xinda has prepaid US$48.2 million to Hong Kong Grand Royal in 2017 for purchase of raw materials. Due to the price fluctuation of raw materials, Hong Kong Grand Royal could not purchase and deliver the raw materials to Dubai Xinda. In July 2019, both parties entered into a supplemental agreement to cancel the original purchase agreements and Hong Kong Grand Royal shall settle the advance payment. The US$42.6 million advance payment as of December 31, 2019 was settled during the year ended December 31, 30, 2020. | ||
[4] | Interest receivable mainly represents interest income accrued from time deposits and restricted cash. | ||
[5] | Others mainly include prepaid miscellaneous service fee, staff advance and prepaid rental fee. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Assets Current (Details) (Parenthetical) - Hong Kong Grand Royal Trading Co., Ltd [Member] - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2020 | |
Prepaid expense | $ 48,200,000 | |
Advance payment | $ 42,600,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Capitalized interest expense | $ 3,306,287 | $ 3,751,573 |
Impairment cost | $ 7,700,000 | $ 88,300,000 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Prepayments to Equipment Suppliers (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total property, plant and equipment | $ 1,089,927,697 | $ 1,068,529,308 |
Less accumulated depreciation | (311,121,721) | (238,209,592) |
Property, plant and equipment, net | 778,805,976 | 830,319,716 |
Machinery, equipment and furniture [Member] | ||
Total property, plant and equipment | 548,087,086 | 575,317,840 |
Motor vehicles [Member] | ||
Total property, plant and equipment | 2,232,982 | 1,709,182 |
Workshops and buildings [Member] | ||
Total property, plant and equipment | 153,585,519 | 156,256,761 |
Construction in progress [Member] | ||
Total property, plant and equipment | $ 386,022,110 | $ 335,245,525 |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net - Schedule of Depreciation Expense on Property, Plant and Equipment (Details) - Property, Plant and Equipment [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciation expense | $ 61,329,756 | $ 59,416,674 |
Cost of revenues [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation expense | 56,344,017 | 52,691,430 |
General and administrative expenses [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation expense | 2,505,195 | 2,949,915 |
Research and development expenses [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation expense | 2,477,689 | 3,770,983 |
Selling expenses [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation expense | $ 2,855 | $ 4,346 |
Prepayments to Equipment and _3
Prepayments to Equipment and Construction Suppliers (Details Narrative) | Dec. 14, 2020USD ($) | Dec. 14, 2020CNY (¥) | Nov. 10, 2020USD ($) | Nov. 10, 2020CNY (¥) | Oct. 12, 2020USD ($) | Oct. 12, 2020CNY (¥) | Jan. 10, 2020USD ($) | Jan. 10, 2020CNY (¥) | Dec. 04, 2019USD ($) | Dec. 04, 2019CNY (¥) | Dec. 03, 2019USD ($) | Dec. 03, 2019CNY (¥) | Nov. 14, 2019USD ($) | Nov. 14, 2019CNY (¥) | Sep. 25, 2019USD ($) | Sep. 25, 2019CNY (¥) | May 31, 2019CNY (¥) | Jun. 21, 2018USD ($) | Jun. 21, 2018CNY (¥) | Jul. 21, 2017USD ($) | Jul. 21, 2017CNY (¥) | Jun. 22, 2017USD ($) | Jun. 22, 2017CNY (¥) | Feb. 28, 2017USD ($) | Feb. 28, 2017CNY (¥) | Nov. 15, 2016USD ($) | Nov. 15, 2016CNY (¥) | Oct. 20, 2016USD ($) | Oct. 20, 2016CNY (¥) | Sep. 26, 2016USD ($) | Sep. 26, 2016CNY (¥) | Jul. 31, 2018USD ($) | Jul. 31, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 30, 2020USD ($) | Dec. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 17, 2017USD ($) | Mar. 17, 2017CNY (¥) |
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | $ 512,048,859 | $ 495,570,421 | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of equipment | 165,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of equipment | 21,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 164,000,000 | $ 120,000,000 | $ 120,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | 39,100,000 | $ 98,400,000 | $ 95,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | $ 50,200,000 | $ 43,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Refunded amount in agreement | $ 56,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Qinling Road Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 24,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Jiangnan Road Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 164,000,000 | $ 109,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | 98,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Three Investment Agreements [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 144,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | 5,900,000 | $ 141,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | 146,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Refunded amount in agreement | $ 130,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Two Additional Equipment Contracts[Member] | Phase I [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Two Additional Equipment Contracts[Member] | Phase II [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 19,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Two Equipment Purchase Contracts [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 292,200,000 | $ 292,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | Two Equipment Purchase Contracts [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | 82,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | $ 272,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 1,070,400,000 | ¥ 782,200,000 | ¥ 782,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | ¥ 255,000,000 | ¥ 642,200,000 | ¥ 621,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | ¥ | ¥ 327,800,000 | ¥ 283,700,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Refunded amount in agreement | ¥ | ¥ 369,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Qinling Road Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 162,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Jiangnan Road Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 1,070,400,000 | ¥ 713,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | 642,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Three Investment Agreements [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 939,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | 37,700,000 | ¥ 920,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | ¥ | ¥ 958,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Refunded amount in agreement | ¥ | ¥ 848,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Two Additional Equipment Contracts[Member] | Phase I [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 65,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Two Additional Equipment Contracts[Member] | Phase II [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 129,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Two Equipment Purchase Contracts [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 1,906,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Two Equipment Purchase Contracts [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 1,906,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | 540,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in prepaid amount | ¥ | ¥ 1,780,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 40,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | 18,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | Construction in progress [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | 11,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | Nanchong Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 292,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | $ 241,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net capital expenditures | $ 383,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | Equipment Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 13,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 264,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | 122,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | Construction in progress [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 73,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | Nanchong Project [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 1,910,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | ¥ | ¥ 1,575,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net capital expenditures | ¥ | ¥ 2,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | Equipment Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 89,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dubai Xinda [Member] | Equipment Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments to equipment suppliers | $ 17,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dubai Xinda [Member] | RMB [Member] | Equipment Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 18,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Harbin Xinda High-Tech Co., Ltd [Member] | Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | $ 18,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Harbin Xinda High-Tech Co., Ltd [Member] | RMB [Member] | Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash consideration | ¥ | ¥ 120,300,000 |
Prepayments to Equipment and _4
Prepayments to Equipment and Construction Suppliers - Schedule of Prepayments to Equipment and Construction Suppliers (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | $ 512,048,859 | $ 495,570,421 | |
Hailezi [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [1] | 468,529,714 | |
Beijin Construction [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [2] | 6,795,439 | |
Peaceful Treasure Limited [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [3] | 19,967,014 | |
Xinda High-Tech [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [4] | ||
Others [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | $ 278,254 | ||
Hailezi [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [1] | 485,504,105 | |
Beijin Construction [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [2] | 7,537,793 | |
Peaceful Treasure Limited [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [3] | ||
Xinda High-Tech [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | [4] | 18,437,064 | |
Others [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Total prepayments to equipment and construction suppliers | $ 569,897 | ||
[1] | The table below summarized the balance of prepayments to Hailezi for each of the projects as of September 30, 2020 and December 31, 2019, and the movements of the prepayments: | ||
[2] | Since November 15, 2016, Sichuan Xinda entered into decoration contracts with Sichuan Beijin Construction Engineering Company Limited ("Beijin Construction") to perform indoor and outdoor decoration work for a consideration of RMB264.3 million (equivalent to US$38.8 million). Pursuant to the contracts with Beijin Construction, Sichuan Xinda has prepaid RMB122.8 million (equivalent to US$18.0 million) as of September 30, 2020, of which RMB74.0 million (equivalent to US$10.9 million) was transferred to construction in progress. | ||
[3] | On October 20, 2016, Sichuan Xinda entered into an equipment purchase agreement purchase contract with Peaceful Treasure Limited ("Peaceful") for a total consideration of RMB89.8 million (equivalent to US$13.2 million) to purchase certain production and testing equipment. The Company prepaid RMB 33.9 million (equivalent to US$5.0 million) as of September 30, 2020. | ||
[4] | On January 10, 2020, Heilongjiang Xinda New Materials Co., Ltd. ("HLJ New Materials"), a subsidiary of the Company, entered into a purchase agreement with Harbin Xinda High-Tech Co., Ltd. ("Xinda High-Tech") to purchase the land use right, buildings and facilities of one factory in Heilongjiang Province from Xinda High-Tech for a consideration of RMB120.3 million (equivalent to USD17.7 million). On January 23, 2020, HLJ New Materials has paid the consideration to Xinda High-Tech. As of September 30, 2020, the transfer procedures were not completed and were expected to be completed in the fourth quarter of 2020. |
Prepayments to Equipment and _5
Prepayments to Equipment and Construction Suppliers - Schedule of Balance of Prepayments (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | $ 468,500,000 |
Prepaid in 2020 | 164,800,000 |
Transfer to CIP in 2020 | (155,600,000) |
Effect of foreign currency exchange rate changes | 7,800,000 |
Balance as of December 31, 2020 | 485,500,000 |
Storage System [Member] | 2017 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 36,700,000 |
Prepaid in 2020 | |
Transfer to CIP in 2020 | (5,800,000) |
Effect of foreign currency exchange rate changes | 1,700,000 |
Balance as of December 31, 2020 | 32,600,000 |
HLJ Project [Member] | 2017 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 5,900,000 |
Prepaid in 2020 | |
Transfer to CIP in 2020 | (5,900,000) |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | |
HLJ Project [Member] | 2018 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 77,400,000 |
Prepaid in 2020 | 28,100,000 |
Transfer to CIP in 2020 | (109,400,000) |
Effect of foreign currency exchange rate changes | 3,900,000 |
Balance as of December 31, 2020 | |
Nanchong Project [Member] | 2017 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 3,000,000 |
Prepaid in 2020 | |
Transfer to CIP in 2020 | (3,000,000) |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | |
Nanchong Project [Member] | 2018 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 245,100,000 |
Prepaid in 2020 | 200,000 |
Transfer to CIP in 2020 | (3,800,000) |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | 241,500,000 |
Qinling Road Project [Member] | 2019 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 18,600,000 |
Prepaid in 2020 | 5,000,000 |
Transfer to CIP in 2020 | (24,800,000) |
Effect of foreign currency exchange rate changes | 1,200,000 |
Balance as of December 31, 2020 | |
Jiangnan Road Project [Member] | 2019 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | 81,800,000 |
Prepaid in 2020 | |
Transfer to CIP in 2020 | |
Effect of foreign currency exchange rate changes | 1,000,000 |
Balance as of December 31, 2020 | 82,800,000 |
Jiangnan Road Project Phase II [Member] | 2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | |
Prepaid in 2020 | 98,400,000 |
Transfer to CIP in 2020 | |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | 98,400,000 |
HLJ Project-Phase II [Member] | 2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | |
Prepaid in 2020 | 10,000,000 |
Transfer to CIP in 2020 | |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | 10,000,000 |
HLJ Project-Phase III [Member] | 2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | |
Prepaid in 2020 | 19,900,000 |
Transfer to CIP in 2020 | |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | 19,900,000 |
Others [Member] | 2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Balance as of December 31, 2019 | |
Prepaid in 2020 | 3,200,000 |
Transfer to CIP in 2020 | (2,900,000) |
Effect of foreign currency exchange rate changes | |
Balance as of December 31, 2020 | $ 300,000 |
Loan Receivables-Non Current (D
Loan Receivables-Non Current (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | |
Loan receivables | $ 242,100,096 | |||
Disposed of assets | 165,253,409 | |||
Heilongjiang Xinda Enterprise Group [Member] | ||||
Loan receivables | 144,300,000 | |||
Disposed of assets | 68,100,000 | |||
Due from related parties | $ 40,500,000 | |||
Heilongjiang Xinda Enterprise Group [Member] | RMB [Member] | ||||
Loan receivables | ¥ | ¥ 870,900,000 | |||
Disposed of assets | ¥ | ¥ 444,300,000 | |||
Due from related parties | ¥ | ¥ 264,300,000 |
Loan Receivables-Non Current -
Loan Receivables-Non Current - Schedule of Loan Receivables Non-Current (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total loan receivables-non current | $ 242,100,096 | |
Shanghai Sales [Member] | ||
Total loan receivables-non current | 133,466,679 | |
Macromolecule Composite Materials [Member] | ||
Total loan receivables-non current | 68,099,128 | |
Peiqu International [Member] | ||
Total loan receivables-non current | $ 40,534,289 |
Borrowings (Details Narrative)
Borrowings (Details Narrative) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 5.20% | 5.00% |
Borrowings - Schedule of Short-
Borrowings - Schedule of Short-term Loans (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | $ 643,602,543 | $ 680,174,859 | |
Unsecured Loans [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | 480,957,562 | 407,657,464 | |
Loans Secured by Accounts Receivable [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | [1] | 64,505,031 | |
Guaranteed Loan [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | [2] | 36,536,958 | |
Loans Secured by Restricted Cash [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | [3] | 15,325,905 | 14,334,451 |
Syndicated Loan Facility [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | [4] | 128,020,559 | |
Loan Secured by Inventories [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term loans, including current portion of long-term bank loans | [5] | 12,260,724 | 5,733,781 |
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 | $ 98,521,394 | $ 59,923,573 | |
[1] | As of December 31, 2020 and 2019, the Company had nil and US$64.5 million of short-term bank loans obtained from Longjiang Bank secured by accounts receivables of nil and US$92.2 million, respectively. | ||
[2] | In January 2019, Sichuan Xinda obtained a one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. Pursuant to the extension agreement dated January 2020, the loan maturity date was extended to July 2020 with a third-party guarantee provided by Nanchong Shuntou Development Group Co., Ltd. ("Shuntou"). Pursuant to the loan contract, the ratio of liabilities to assets of Sichuan Xinda shall not exceed 55%. The loan was repaid in July 2020. In July 2020, Sichuan Xinda obtained a new one-year short-term unsecured bank loan of RMB250.0 million (equivalent to US$36.7 million) from Nanchong Rural Commercial Bank. As of December 31, 2020, the Company repaid RMB11.6 million (equivalent to US$1.8 million). | ||
[3] | As of December 31, 2020 and 2019, the Company had US$15.3 million and US$14.3 million of short-term bank loans secured by restricted cash of US$1,532,591 and US$1.4 million, respectively. | ||
[4] | On October 2, 2019, Xinda Holding (HK) Company Limited ("Xinda Holding (HK)"), a wholly owned subsidiary of the Company, entered into a facility agreement for a one-year loan facility due on December 15,2020 in an aggregate amount of US$135.0 million with a consortium of banks and financial institutions led by Industrial and Commercial Bank of China (Macau) Limited. The Company made the drawdown on December 18, 2019. The interest rate of the loan is 2.0% plus three-month LIBOR. The Company incurred agency fee and arrangement fee in the amount of US$7.2 million for the loan and without unamortized balance as of December 31, 2020. Loan 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 9.21% as of December 16, 2020. Xinda Holding (HK) made a full repayment of US$135.0 million on December 16, 2020. | ||
[5] | In November 2019, the Company obtained a one-year short-term loan of RMB40.0 million (equivalent to US$5.9 million) from Bank of Inner Mongolia, pledged by inventories in amount of approximately US$39.1 million for the above loan and bills payable in amount of RMB142.0 million (equivalent to US$20.9 million) issued by Bank of Inner Mongolia. On October 20, 2020, the Company repaid the loan in full. |
Borrowings - Schedule of Shor_2
Borrowings - Schedule of Short-term Loans (Details) (Parenthetical) | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jul. 31, 2020USD ($) | Jul. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2019CNY (¥) | Oct. 02, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2019CNY (¥) | |
Short-term bank | $ 643,602,543 | $ 680,174,859 | |||||||||
Accounts receivables | 423,946,875 | 222,072,053 | |||||||||
Restricted cash | 105,072,749 | 211,231,244 | |||||||||
Pledged inventories amount | 20,900,000 | 40,100,000 | |||||||||
Industrial and Commercial Bank of China (Macau) Limited [Member] | |||||||||||
Short-term bank | $ 135,000,000 | ||||||||||
Nanchong Shuntou Development Group Co., Ltd. [Member] | |||||||||||
Loan contract ratio of liabilities to assets | 55.00% | ||||||||||
Longjiang Bank [Member] | |||||||||||
Short-term bank | 64,500,000 | ||||||||||
Accounts receivables | 92,200,000 | ||||||||||
Nanchong Rural Commercial Bank [Member] | Sichuan Xinda [Member] | |||||||||||
Unsecured bank loan | $ 36,700,000 | $ 36,700,000 | |||||||||
Loan maturity date | Jul. 31, 2020 | ||||||||||
Repayment of short term bank loan | 1,800,000 | ||||||||||
Nanchong Rural Commercial Bank [Member] | Sichuan Xinda [Member] | RMB [Member] | |||||||||||
Unsecured bank loan | ¥ | ¥ 250,000,000 | ¥ 250,000,000 | |||||||||
Repayment of short term bank loan | ¥ | ¥ 11,600,000 | ||||||||||
Loan Secured by Restricted Cash [Member] | |||||||||||
Short-term bank | 15,325,905 | 14,334,451 | |||||||||
Restricted cash | 1,532,591 | $ 1,400,000 | |||||||||
Consortium of banks and financial institutions led by Standard Chartered Bank [Member] | |||||||||||
Repayment of short term bank loan | $ 135,000,000 | ||||||||||
Debt instrument description of variable rate basis | 2.0% plus three-month LIBOR | 2.0% plus three-month LIBOR | |||||||||
Legal fees | $ 7,200,000 | ||||||||||
Debt instrument, interest rate | 9.21% | ||||||||||
Bank of Inner Mongolia [Member] | |||||||||||
Short-term bank | $ 5,900,000 | ||||||||||
Pledged inventories amount | 39,100,000 | ||||||||||
Loan and bills payable amount | $ 20,900,000 | ||||||||||
Bank of Inner Mongolia [Member] | RMB [Member] | |||||||||||
Short-term bank | ¥ | ¥ 40,000,000 | ||||||||||
Loan and bills payable amount | ¥ | ¥ 142,000,000 |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | $ 727,293,417 | $ 322,456,413 |
Secured loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | 585,890,017 | 1,742,389 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | 239,924,794 | 380,637,597 |
Current Portion [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans, excluding current portion | $ 98,521,394 | $ 59,923,573 |
Borrowings - Schedule of Long_2
Borrowings - Schedule of Long-Term Debt (Details) (Parenthetical) | Dec. 27, 2020USD ($) | Nov. 30, 2020USD ($) | Sep. 28, 2020 | Apr. 29, 2020USD ($) | Dec. 03, 2019 | Jun. 20, 2019USD ($) | Apr. 15, 2019 | Dec. 26, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020AED (د.إ) | Dec. 31, 2019USD ($) | Dec. 31, 2019AED (د.إ) | Dec. 31, 2020AED (د.إ) | Dec. 27, 2020CNY (¥) | Nov. 30, 2020CNY (¥) | Apr. 29, 2020CNY (¥) | Jun. 20, 2019CNY (¥) | Dec. 26, 2018MOP (MOP$) | Nov. 16, 2017CNY (¥) | Nov. 06, 2017USD ($) | Jan. 05, 2017USD ($) | Jan. 05, 2017CNY (¥) |
Long-term bank loans | $ 727,293,417 | $ 322,456,413 | ||||||||||||||||||||
Weighted average interest rate | 5.20% | 5.00% | 5.20% | |||||||||||||||||||
Sichuan Xinda [Member] | ||||||||||||||||||||||
Debt term | 3 months | 1 year | ||||||||||||||||||||
Debt instrument, interest rate | 5.95% | 6.09% | ||||||||||||||||||||
HLJ Xinda Group [Member] | ||||||||||||||||||||||
Debt term | 1 year | |||||||||||||||||||||
Debt instrument, interest rate | 6.25% | |||||||||||||||||||||
National Bank of Umm Al Qaiwain [Member] | ||||||||||||||||||||||
Debt term | 5 years | |||||||||||||||||||||
Long-term bank loans | $ 2,200,000 | |||||||||||||||||||||
Debt instrument, interest rate | 51.00% | 51.00% | ||||||||||||||||||||
Repayment of long term bank loan | $ 400,000 | $ 400,000 | ||||||||||||||||||||
National Bank of Umm Al Qaiwain [Member] | Dubai Xinda [Member] | ||||||||||||||||||||||
Long-term bank loans | 2,400,000 | |||||||||||||||||||||
Repayment of long term bank loan | $ 200,000 | |||||||||||||||||||||
National Bank of Umm Al Qaiwain [Member] | LIBOR Plus [Member] | ||||||||||||||||||||||
Debt instrument, interest rate | 375.00% | 375.00% | ||||||||||||||||||||
National Bank of Umm Al Qaiwain [Member] | United Arab Emirates, Dirhams [Member] | ||||||||||||||||||||||
Long-term bank loans | MOP$ | MOP$ 8000000 | |||||||||||||||||||||
Repayment of long term bank loan | د.إ | د.إ 1,600,000 | د.إ 1,600,000 | ||||||||||||||||||||
National Bank of Umm Al Qaiwain [Member] | United Arab Emirates, Dirhams [Member] | Dubai Xinda [Member] | ||||||||||||||||||||||
Long-term bank loans | د.إ | د.إ 8,800,000 | |||||||||||||||||||||
Repayment of long term bank loan | د.إ | د.إ 800,000 | |||||||||||||||||||||
Longjiang Bank of Harbin [Member] | Sichuan Xinda [Member] | ||||||||||||||||||||||
Debt term | 7 years | |||||||||||||||||||||
Long-term bank loans | $ 229,900,000 | |||||||||||||||||||||
Debt instrument, interest rate | 563.50% | 563.50% | ||||||||||||||||||||
Debt instrument description of variable rate basis | an interest rate on the date of withdrawal plus 0.15% of 5-year LPR | |||||||||||||||||||||
Longjiang Bank of Harbin [Member] | HLJ Xinda Group [Member] | ||||||||||||||||||||||
Debt term | 6 years | 3 years | ||||||||||||||||||||
Long-term bank loans | $ 162,500,000 | $ 153,300,000 | ||||||||||||||||||||
Debt instrument, interest rate | 4.90% | 5.50% | 4.90% | 5.50% | ||||||||||||||||||
Longjiang Bank of Harbin [Member] | RMB [Member] | Sichuan Xinda [Member] | ||||||||||||||||||||||
Long-term bank loans | ¥ | ¥ 1,500,000 | |||||||||||||||||||||
Longjiang Bank of Harbin [Member] | RMB [Member] | HLJ Xinda Group [Member] | ||||||||||||||||||||||
Long-term bank loans | ¥ | ¥ 1,060,000 | ¥ 1,000,000 | ||||||||||||||||||||
Agriculture Bank of China, Harbin Branch [Member] | HLJ New Materails [Member] | ||||||||||||||||||||||
Debt term | 3 years | |||||||||||||||||||||
Long-term bank loans | $ 61,300,000 | |||||||||||||||||||||
Debt instrument, interest rate | 513.00% | 513.00% | ||||||||||||||||||||
Agriculture Bank of China, Harbin Branch [Member] | RMB [Member] | HLJ New Materails [Member] | ||||||||||||||||||||||
Long-term bank loans | ¥ | ¥ 400,000,000 | |||||||||||||||||||||
Sichuan Xinda [Member] | Nanchong Shuntou Development Group Co., Ltd [Member] | ||||||||||||||||||||||
Long-term bank loans | $ 61,300,000 | $ 61,300,000 | ||||||||||||||||||||
Debt instrument, interest rate | 4.35% | 4.35% | 4.35% | |||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | Nanchong Shuntou Development Group Co., Ltd [Member] | ||||||||||||||||||||||
Long-term bank loans | ¥ | ¥ 400,000,000 | ¥ 200,000,000 | ||||||||||||||||||||
Long-term unsecured bank loans [Member] | ||||||||||||||||||||||
Weighted average interest rate | 5.40% | 5.50% | 5.40% | |||||||||||||||||||
Debt maturity description | mature serially from 2021 to 2027 | mature serially from 2021 to 2027 |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities on Long-Term Bank Loans (Details) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 316,483,751 |
2022 | 49,320,936 |
2023 | 158,405,133 |
2024 | 39,683,782 |
After 2025 | 163,399,815 |
Total | $ 727,293,417 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |||
Payables for purchase of property, plant and equipment | $ 21,778,463 | $ 12,445,494 | |
Accrued freight expenses | 23,898,196 | 17,665,998 | |
Accrued interest expenses | 10,337,622 | 15,650,965 | |
Contract liabilities | [1] | 15,633,147 | 17,922,160 |
Accrued payroll and benefits | 9,633,072 | 10,882,901 | |
Non income tax payables | 7,804,449 | 6,056,024 | |
Others | [2] | 22,837,214 | 5,926,846 |
Total accrued expenses and other current liabilities | $ 111,922,163 | $ 86,550,388 | |
[1] | Contract liabilities mainly represent the advance received from customers in the PRC for the finished goods and raw materials purchases. The change in contract liabilities primarily represents the cash received, less amounts recognized as revenues during the period. | ||
[2] | Others mainly represent accrued audit and consulting fees, electricity fee and other accrued miscellaneous operating expenses. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Proceeds from Related party | $ 482,389 | $ 8,790,021 | |
Repayment of related party debt | (11,352,877) | (76,079,512) | |
Macromolecule Composite Materials [Member] | |||
Proceeds from Related party | [1] | 63,488,212 | |
Repayment of related party debt | (63,017,445) | ||
Macromolecule Composite Materials [Member] | Sales [Member] | |||
Proceeds from Related party | [1] | 1,040,485 | |
Jie Han [Member] | |||
Proceeds from Related party | 405,536 | 2,920,049 | |
Repayment of related party debt | (116,802) | ||
Jie Han's Son [Member] | |||
Proceeds from Related party | 8,760,147 | ||
Repayment of related party debt | (9,423,568) | ||
Jie Han's Wife [Member] | |||
Repayment of related party debt | (2,667,594) | ||
Qingwei Ma [Member] | |||
Proceeds from Related party | 3,570,862 | 9,425,891 | |
Repayment of related party debt | (1,565,762) | (8,265,781) | |
Xin Yang [Member] | |||
Proceeds from Related party | 9,198,107 | ||
HLJ Xinda Group and Sichuan Xinda [Member] | |||
Proceeds from Related party | 275,234 | ||
Repayment of related party debt | $ (4,679,484) | ||
[1] | On December 26, 2018, Heilongjiang Xinda Enterprise Group Shanghai New Materials Sales Company Limited ("Shanghai Sales"), set up Heilongjiang Xinda Macromolecule Composite Materials Company Limited ("Macromolecule Composite Materials"). On April 22, 2019, Shanghai Sales transferred 97.5% equity interest in Macromolecule Composite Materials to Harbin Shengtong Engineering Plastics Co. Ltd. ("Harbin Shengtong"). Mr. Xigang Chen, who was the general manager of Sichuan Xinda, was the general manager and principal shareholder of Harbin Shengtong. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions (Details) (Parenthetical) | Apr. 22, 2019 |
Macromolecule Composite Materials [Member] | Harbin Shengtong Engineering Plastics [Member] | |
Equity interest rate transfer | 97.50% |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Parties Balances (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 941,462 | |
Qingwei Ma [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 941,462 |
Related Party Transactions - _4
Related Party Transactions - Schedule of Due to Related Parties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Amounts due to a related party | $ 23,671,440 | $ 26,251,919 |
Qingwei Ma [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | 13,973,332 | 12,499,642 |
Mr. Jie Han's wife [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | 500,000 | 3,137,539 |
Mr. Jie Han's son [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | 9,317,393 | |
Mr. Qingwei Ma [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | 1,146,756 | |
Xin Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | 9,198,108 | |
Senior Managements [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | $ 150,589 |
Income Tax (Details Narrative)
Income Tax (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2020 | Dec. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2007 |
Income Tax [Line Items] | ||||||||
Effective income tax rate | 0.21 | |||||||
PRC statutory income tax rate | 25.00% | 25.00% | ||||||
Effective income tax rate | (3.30%) | 82.10% | ||||||
Withhold Income tax percentage | 10.00% | |||||||
Net asset | $ 2,923,926,000 | $ 2,635,882,248 | ||||||
Deferred income tax liability | 3,101,509 | 4,613,524 | ||||||
Research and developement equipment | 22,494,445 | 50,329,809 | ||||||
Unrecognized tax benefit | 37,071,419 | 34,706,069 | $ 33,048,639 | $ 6,046,897 | ||||
Income tax interest expenses | 4,603,509 | 1,819,859 | ||||||
Income tax interest accrued related to unrecognized tax benefit | 15,565,560 | 13,774,161 | ||||||
Reversed accrued interest | 5,442,207 | |||||||
Accrued interest | $ 4,665,964 | $ 5,655,714 | ||||||
Harbin Xinda Macromolecule Material Research Institute [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Registered capital | $ 400,000 | |||||||
Net asset | $ 84,000,000 | |||||||
Undistributed gain on sale of business | 400,000 | |||||||
Harbin Xinda [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Registered capital | 500,000 | |||||||
Capital expenditure | 84,000,000 | |||||||
Deferred income tax liability | $ 2,150,000 | $ 3,171,643 | 4,613,524 | |||||
Research and developement equipment | $ 84,000,000 | |||||||
PRC [Member] | Subsidiaries [Member] | ||||||||
Income Tax [Line Items] | ||||||||
PRC statutory income tax rate | 15.00% | |||||||
Undistributed earnings | $ 753,993,820 | 799,118,243 | ||||||
Tax loss carryforwards | 28,649,345 | |||||||
PRC [Member] | Subsidiaries [Member] | Tax Carry forward Group One [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Tax loss carryforwards | $ 5,431,116 | |||||||
Tax loss carryforwards, expiration date | Dec. 31, 2023 | |||||||
PRC [Member] | Subsidiaries [Member] | Tax Carry forward Group Two [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Tax loss carryforwards | $ 5,177,047 | |||||||
Tax loss carryforwards, expiration date | Dec. 31, 2024 | |||||||
PRC [Member] | Subsidiaries [Member] | Tax Carry forward Group Three [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Tax loss carryforwards | $ 2,018,821 | |||||||
Tax loss carryforwards, expiration date | Dec. 31, 2025 | |||||||
Dubai [Member] | Subsidiaries [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Undistributed earnings | $ 60,405,120 | $ 149,014,511 | ||||||
HK [Member] | Subsidiaries [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Tax loss carryforwards | $ 114,800,121 | |||||||
Cumulative loss percentage | 100.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total income (loss) before income taxes | $ (175,941,255) | $ 17,092,176 |
US [Member] | ||
Total income (loss) before income taxes | (2,792,888) | (1,870,587) |
Inland Revenue Department British Virgin Island [Member] | ||
Total income (loss) before income taxes | (3,313) | (47) |
Hong Kong SAR [Member] | ||
Total income (loss) before income taxes | (12,297,593) | (16,295,949) |
Dubai [Member] | ||
Total income (loss) before income taxes | (209,419,631) | (52,773,153) |
PRC [Member] | ||
Total income (loss) before income taxes | $ 48,572,168 | $ 88,031,912 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax benefit | $ (1,690,083) | $ (2,017,823) |
Total income tax expense | 5,759,630 | 14,036,698 |
PRC [Member] | ||
Current income tax expense | 9,472,088 | 15,625,998 |
Deferred income tax benefit | (3,712,458) | (2,017,823) |
US [Member] | ||
Current income tax expense | $ 428,523 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
PRC statutory income tax rate | 25.00% | 25.00% |
Tax rate differential on entities not subject to PRC income tax | (107.80%) | 85.00% |
Non-deductible expenses | 10.00% | 10.00% |
Preferential tax rate | 10.80% | (16.70%) |
Change in valuation allowance | 36.10% | 23.30% |
R&D additional deduction | 38.00% | (49.50%) |
Reversal of unrealized tax benefits | (21.40%) | (21.40%) |
True-up prior year's tax filing | (4.20%) | 16.20% |
Others | 10.20% | 10.20% |
Effective income tax rate | (3.30%) | 82.10% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Deferred Income Tax Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | |||
Tax loss carry forwards | $ 33,524,819 | $ 14,313,575 | |
Provision for prepayment in relation to equipment and construction in progress | 778,943 | ||
Less: valuation allowance | (33,524,819) | (14,313,575) | $ (10,559,911) |
Deferred income tax assets, net | 778,943 | ||
Property, plant and equipment | $ 3,101,509 | $ 4,613,524 |
Income Taxes - Schedule of Move
Income Taxes - Schedule of Movements of Valuation Allowance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 14,313,575 | $ 10,559,911 |
Additions of valuation allowance | 19,211,244 | 3,983,094 |
Reduction of valuation allowance | (229,430) | |
Balance at the end of the year | $ (33,524,819) | $ (14,313,575) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 34,706,069 | $ 33,048,639 |
Increase related to current year tax positions | 5,775,068 | 5,279,589 |
Decrease related to prior year tax positions | (5,720,163) | (3,622,159) |
Effect of foreign currency change | 4,542,637 | |
Balance at the end of the year | $ 37,071,419 | $ 34,706,069 |
Deferred income (Details)
Deferred income (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020T | Jan. 31, 2015USD ($) | Jan. 31, 2015CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | $ | $ 25,600,000 | ||||
Government grants have been amortized | $ | 7,400,000 | ||||
Ministry of Science and Technology of PRC [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | $ | 1,100,000 | ||||
Harbin Bureau of Finance [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | $ | 19,600,000 | ||||
Ministry of Finance of the People's Republic of China [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | $ | 900,000 | ||||
Interest subsidy for bank loans | $ | 5,500,000 | ||||
Government grants have been amortized | $ | 2,400,000 | ||||
Harbin Bureau of Finance for Biomedical [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Bio-composite material | T | 300,000 | ||||
RMB [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | ¥ | ¥ 166,800,000 | ||||
Government grants have been amortized | ¥ | 51,300,000 | ||||
RMB [Member] | Ministry of Science and Technology of PRC [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | ¥ | 7,500,000 | ||||
RMB [Member] | Harbin Bureau of Finance [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | ¥ | 128,000,000 | ||||
RMB [Member] | Ministry of Finance of the People's Republic of China [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Proceeds for Support construction | ¥ | 6,400,000 | ||||
Interest subsidy for bank loans | ¥ | 36,000,000 | ||||
Government grants have been amortized | ¥ | 16,400,000 | ||||
Fund Support Agreement With Shunqing Government [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Government grant, agreement amount | $ | $ 53,600,000 | 2,400,000 | |||
Proceeds for Support construction | $ | $ 51,700,000 | ||||
Fund Support Agreement With Shunqing Government [Member] | RMB [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Government grant, agreement amount | ¥ | ¥ 350,000,000 | 16,400,000 | |||
Proceeds for Support construction | ¥ | ¥ 337,400,000 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |||
Income tax payable-noncurrent | [1] | $ 75,998,231 | $ 86,414,852 |
Deferred income tax liabilities | 3,101,509 | 4,613,524 | |
Others | |||
Total other non-current liabilities | $ 79,099,740 | $ 91,028,376 | |
[1] | Income tax payable-noncurrent represents the repatriation tax, the accumulative balance of unrecognized tax benefits since 2016 and related accrued interest. According to the Tax Cuts and Jobs Act enacted on December 22, 2017, the management recognized the amount of U.S. tax corporate income tax is US$70,965,148 based on the deemed repatriation to the United States of accumulated earnings mandated by the U.S. tax reform, US$22,708,848 of which due payable within one year was classified as current liabilities. |
Other Non-Current Liabilities_2
Other Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Details) (Parenthetical) | Dec. 22, 2017USD ($) |
Other Liabilities, Noncurrent [Abstract] | |
U.S. tax corporate income tax | $ 70,965,148 |
U.S. tax accumulated earnings tax reform | $ 22,708,848 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Notes to Financial Statements | ||
Stock, shares authorized | 550,000,000 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock (Details Narrat
Preferred Stock (Details Narrative) | Sep. 26, 2019shares | Sep. 28, 2011USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥) | Dec. 31, 2011CNY (¥) | Jan. 01, 2022$ / shares | Sep. 30, 2021$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Aug. 15, 2011USD ($)$ / sharesshares |
Preferred stock, purchased | 1,000,000 | 1,000,000 | ||||||||
Preferred stock par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Preferred stock, consideration value | $ | $ 100 | $ 100 | ||||||||
Preferred stock, outstanding | 1,000,000 | 1,000,000 | ||||||||
RMB [Member] | ||||||||||
Actual profit | ¥ | ¥ 608,000,000 | ¥ 468,000,000 | ¥ 360,000,000 | |||||||
Series B Preferred Stock [Member] | XD Engineering Plastics [Member] | ||||||||||
Number of shares issued | 1,000,000 | |||||||||
Percentage of voting power | 40.00% | |||||||||
Preferred stock, liquidation per share | $ / shares | $ 1 | |||||||||
Series D Preferred Stock [Member] | ||||||||||
Preferred stock, outstanding | 1,600,000 | |||||||||
Interest rate | 15.00% | |||||||||
Series D Preferred Stock [Member] | Security Purchase Agreement [Member] | ||||||||||
Number of shares issued | 16,000,000 | |||||||||
Preferred stock, purchased | 16,000,000 | |||||||||
Preferred stock par value | $ / shares | $ 0.0001 | |||||||||
Preferred stock, consideration value | $ | $ 100,000,000 | |||||||||
Shares issued per share | $ / shares | $ 6.25 | |||||||||
Number of shares issued, value | $ | $ 100,000,000 | |||||||||
Net proceeds from issuance cost | $ | $ 99,100,000 | |||||||||
Series D Preferred Stock [Member] | Security Purchase Agreement [Member] | RMB [Member] | ||||||||||
Conversion stock, value | ¥ | ¥ 800,000,000 | ¥ 520,000,000 | ¥ 360,000,000 | |||||||
Series D Preferred Stock [Member] | Security Purchase Agreement [Member] | Forecast [Member] | ||||||||||
Conversion price per share | $ / shares | $ 6.25 | |||||||||
Series D Preferred Stock [Member] | Modified Plastics Holding Limited [Member] | ||||||||||
Conversion of stock, shares converted | 16,000,000 | |||||||||
Conversion of stock, shares issued | 16,000,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details Narrative) | Jan. 21, 2025USD ($) | Jan. 21, 2025CNY (¥) | Jan. 21, 2024 | Dec. 31, 2020USD ($) | Jun. 29, 2020 | Apr. 30, 2020 | Jan. 22, 2020USD ($) | Jan. 22, 2020CNY (¥) | Dec. 31, 2019USD ($) |
Noncontrolling Interest [Line Items] | |||||||||
Amount of equity interest acquired | $ 50,025,150 | ||||||||
Non-controlling Interests [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Carrying value of noncontrolling interest | $ 50,200,000 | ||||||||
Subsequent Event [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of equity interest acquired redeem | 50.00% | 50.00% | 50.00% | ||||||
Amount of equity interest acquired redeem | $ 325,000,000 | ||||||||
Interest rate | 1.50% | 1.50% | |||||||
RMB [Member] | Subsequent Event [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Amount of equity interest acquired redeem | ¥ | ¥ 325,000,000 | ||||||||
Subsidiaries One [Member] | Non-controlling Interests [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of pledged equity interest | 63.79% | ||||||||
Subsidiaries Two [Member] | Non-controlling Interests [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of pledged equity interest | 61.92% | ||||||||
Subsidiaries [Member] | Minimum [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of equity interest acquired | 34.38% | ||||||||
Equity ownership percent | 61.92% | ||||||||
Subsidiaries [Member] | Maximum [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of equity interest acquired | 38.08% | ||||||||
Equity ownership percent | 65.62% | ||||||||
Third Party Investor [Member] | Subsidiaries [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of equity interest acquired | 36.21% | 36.21% | |||||||
Present value of redemption value | $ 45,900,000 | ||||||||
Third Party Investor [Member] | PRC subsidiaries Two [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Percentage of equity interest acquired | 38.08% | 38.08% | |||||||
Third Party Investor [Member] | PRC Subsidiaries [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Amount of equity interest acquired | $ 47,700,000 | ||||||||
Third Party Investor [Member] | PRC Subsidiaries [Member] | RMB [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Amount of equity interest acquired | ¥ | ¥ 325,000,000 | ||||||||
Noncontrolling Shareholder [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Interest rate | 1.50% |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | May 26, 2021 | Aug. 26, 2020 | Feb. 20, 2020 | Dec. 31, 2020 | Jan. 10, 2020 | Dec. 31, 2019 |
Nonvested Shares [Member] | General and Administrative Expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 4,188,600 | |||||
Mr. Jie Han and Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares granted | 3,000,000 | |||||
Two Nonemployee Consultants [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares granted | 1,000,000 | |||||
Three Executives, One Senior Management And One Consultant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares granted | 3,600,000 | |||||
2009 Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate number of common stock issued | 7,800,000 | |||||
Stock Issuance Plan 2020 [Member] | Board of Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for issuance | 13,000,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Nonvested Shares Activity (Details) - Nonvested Shares [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Nonvested Shares, Outstanding as of December 31, 2019 | shares | |
Number of Nonvested Shares, Granted | shares | 7,600,000 |
Number of Nonvested Shares, Vested | shares | (3,600,000) |
Number of Nonvested Shares, Forfeited | shares | (4,000,000) |
Number of Nonvested Shares, Outstanding as of December 31, 2020 | shares | |
Weighted Average Grant date Fair Value, Outstanding as of December 31, 2019 | $ / shares | |
Weighted Average Grant date Fair Value, Granted | $ / shares | 1.34 |
Weighted Average Grant date Fair Value, Vested | $ / shares | 1.16 |
Weighted Average Grant date Fair Value, Forfeited | $ / shares | 1.50 |
Weighted Average Grant date Fair Value, Outstanding as of December 31, 2020 | $ / shares |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||||||||
Net income (loss) attributable to China XD Plastics Company Limited | $ (150,200,000) | $ (38,100,000) | $ 17,600,000 | $ (11,000,000) | $ (65,000,000) | $ 17,000,000 | $ 40,100,000 | $ 11,000,000 | $ (181,700,885) | $ 3,055,478 | $ (181,700,885) | $ 3,055,478 |
Less: Earnings allocated to participating Series D convertible preferred stocks | (536,164) | |||||||||||
Net income for basic and diluted earnings per share | $ (181,700,885) | $ 2,519,314 | ||||||||||
Denominator for basic earnings per share | 44,733,357 | 55,200,896 | ||||||||||
Denominator for diluted earnings per share | 44,733,357 | 55,200,896 | ||||||||||
Basic and diluted earnings per common share | $ (4.06) | $ 0.05 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Potentially Dilutive Securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Convertible Preferred Stock Series D [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares issuable upon conversion of stock | 11,747,945 |
Statutory Reserves (Details Nar
Statutory Reserves (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Remaining balance of statutory reserve, percent | 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. | |||
Appropriations to reserve fund | $ 538,357,103 | $ 720,159,368 | ||
Subsidiaries [Member] | ||||
Appropriations to reserve fund | 1,700,000 | 3,800,000 | ||
Accumulated balance of statutory surplus reserve | $ 55,100,000 | $ 53,400,000 | ||
Subsidiaries [Member] | RMB [Member] | ||||
Appropriations to reserve fund | ¥ | ¥ 11,700,000 | ¥ 26,000,000 | ||
Accumulated balance of statutory surplus reserve | ¥ | ¥ 358,400,000 | ¥ 346,700,000 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020HKD ($) | Dec. 31, 2020MOP (MOP$) | |
Bank deposits | $ 1,072,301 | $ 1,063,709 | |||
RMB [Member] | |||||
Bank deposits | ¥ | ¥ 500,000 | ||||
Hong Kong, Dollars [Member] | |||||
Bank deposits | $ 500,000 | ||||
Macau, Patacas [Member] | |||||
Bank deposits | MOP$ | MOP$ 500000 | ||||
Supplier Concentration Risk [Member] | Revenue Benchmark [Member] | Two Distributors [Member] | |||||
Concentration risk percentage | 23.20% | ||||
Supplier Concentration Risk [Member] | Revenue Benchmark [Member] | One Distributor [Member] | |||||
Concentration risk percentage | 14.70% |
Risks and Uncertainties - Sched
Risks and Uncertainties - Schedule of Sales Concentration Revenue Percentage (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable | $ 423,946,875 | $ 222,072,053 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Distributor A [Member] | ||
Accounts receivable | $ 122,300,000 | $ 201,500,000 |
Concentration risk percentage | 9.30% | 13.90% |
Risks and Uncertainties - Sch_2
Risks and Uncertainties - Schedule of Cash, Cash Equivalents and Restricted Cash at Bank (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020HKD ($) | Dec. 31, 2020AED (د.إ) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) |
Bank deposits | $ 1,072,301 | $ 1,063,709 | |||||
China, Yuan Renminbi [Member] | CHINA [Member] | |||||||
Bank deposits | ¥ | ¥ 182,687,189 | ¥ 226,488,069 | |||||
China, Yuan Renminbi [Member] | HONG KONG [Member] | |||||||
Bank deposits | ¥ | 9,422 | 8,134 | |||||
China, Yuan Renminbi [Member] | UAE [Member] | |||||||
Bank deposits | ¥ | ¥ 1,231 | ||||||
United States of America, Dollars [Member] | CHINA [Member] | |||||||
Bank deposits | 859 | 16,868 | |||||
United States of America, Dollars [Member] | HONG KONG [Member] | |||||||
Bank deposits | 381,477 | 590,131 | |||||
United States of America, Dollars [Member] | UAE [Member] | |||||||
Bank deposits | 16,395 | 4,549 | |||||
United States of America, Dollars [Member] | UNITED STATES [Member] | |||||||
Bank deposits | 25,483 | 3,057 | |||||
United States of America, Dollars [Member] | MACAO [Member] | |||||||
Bank deposits | $ 150,060 | 1,288,792 | |||||
Hong Kong, Dollars [Member] | |||||||
Bank deposits | $ 500,000 | ||||||
Hong Kong, Dollars [Member] | HONG KONG [Member] | |||||||
Bank deposits | $ 156 | $ 156 | |||||
United Arab Emirates, Dirhams [Member] | UAE [Member] | |||||||
Bank deposits | د.إ 62,156 | $ 33,263 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Sep. 28, 2020USD ($) | Dec. 03, 2019USD ($) | Nov. 14, 2019USD ($) | Nov. 14, 2019CNY (¥) | May 31, 2019USD ($) | Apr. 15, 2019USD ($) | Jul. 12, 2018USD ($)Integer | Jul. 12, 2018CNY (¥)Integer | Jun. 25, 2018USD ($)Integer | Jun. 25, 2018CNY (¥)Integer | Jun. 21, 2018USD ($) | Jun. 21, 2018CNY (¥) | Jun. 10, 2017USD ($) | Jun. 10, 2017CNY (¥) | Jun. 09, 2017USD ($) | Jun. 09, 2017CNY (¥) | Mar. 30, 2017USD ($) | Mar. 30, 2017CNY (¥) | Feb. 20, 2017USD ($) | Feb. 20, 2017CNY (¥) | Nov. 15, 2016USD ($) | Nov. 15, 2016CNY (¥) | Oct. 20, 2016USD ($) | Oct. 20, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 30, 2020USD ($) | Sep. 28, 2020CNY (¥) | Dec. 03, 2019CNY (¥) | Apr. 15, 2019CNY (¥) |
Harbin Hailezi Science and Technology Co., Ltd [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 2,600,000 | |||||||||||||||||||||||||||||||
Purchase obligation cancelled | $ | $ 200,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | $ 500,000 | |||||||||||||||||||||||||||||||
Harbin Hailezi Science and Technology Co., Ltd [Member] | Nanchong Project [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 292,800,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | $ 30,400,000 | |||||||||||||||||||||||||||||||
Harbin Hailezi Science and Technology Co., Ltd [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 17,000,000 | |||||||||||||||||||||||||||||||
Purchase obligation cancelled | ¥ | ¥ 1,600,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | ¥ 3,000,000 | |||||||||||||||||||||||||||||||
Harbin Hailezi Science and Technology Co., Ltd [Member] | RMB [Member] | Nanchong Project [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 1,910,500,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | 198,500,000 | |||||||||||||||||||||||||||||||
Peaceful Treasure Limited [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 13,700,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | 8,500,000 | |||||||||||||||||||||||||||||||
Peaceful Treasure Limited [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 89,500,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | 55,600,000 | |||||||||||||||||||||||||||||||
Beijin Construction Engineering Company Limited [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 3,600,000 | $ 36,900,000 | $ 36,900,000 | |||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | 22,200,000 | |||||||||||||||||||||||||||||||
Beijin Construction Engineering Company Limited [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 23,800,000 | ¥ 240,500,000 | ¥ 240,500,000 | |||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | 144,700,000 | |||||||||||||||||||||||||||||||
HLJ Xinda Group [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 282,200,000 | $ 282,200,000 | ||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | 186,100,000 | |||||||||||||||||||||||||||||||
Quantity required | Integer | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||||||||||||||||||||
Debt term | 1 year | |||||||||||||||||||||||||||||||
Debt face amount | $ | $ 93,800,000 | |||||||||||||||||||||||||||||||
Interest rate | 6.25% | 6.25% | ||||||||||||||||||||||||||||||
HLJ Xinda Group [Member] | Supplementary Agreement [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 272,900,000 | |||||||||||||||||||||||||||||||
HLJ Xinda Group [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 1,906,800,000 | ¥ 1,906,800,000 | ||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | 1,214,100,000 | |||||||||||||||||||||||||||||||
Debt face amount | ¥ | ¥ 612,200,000 | |||||||||||||||||||||||||||||||
Obliged to repay | ¥ | ¥ 12,200,000 | |||||||||||||||||||||||||||||||
HLJ Xinda Group [Member] | RMB [Member] | Supplementary Agreement [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 1,780,900,000 | |||||||||||||||||||||||||||||||
Dubai Xinda [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 18,800,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | 1,800,000 | |||||||||||||||||||||||||||||||
Beijing Fangyuan Decoration Engineering Co., Ltd [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 900,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | 600,000 | |||||||||||||||||||||||||||||||
Beijing Fangyuan Decoration Engineering Co., Ltd [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 5,800,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | 3,700,000 | |||||||||||||||||||||||||||||||
Beijing Zhonghongwufang Stone Co., Ltd [Member] | ||||||||||||||||||||||||||||||||
Total consideration | $ | $ 200,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | $ | $ 100,000 | |||||||||||||||||||||||||||||||
Beijing Zhonghongwufang Stone Co., Ltd [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Total consideration | ¥ | ¥ 1,200,000 | |||||||||||||||||||||||||||||||
Purchase obligation, remaining commitment | ¥ | ¥ 600,000 | |||||||||||||||||||||||||||||||
Sichuan Xinda [Member] | ||||||||||||||||||||||||||||||||
Debt term | 3 months | 1 year | ||||||||||||||||||||||||||||||
Debt face amount | $ | $ 107,300,000 | $ 122,600,000 | ||||||||||||||||||||||||||||||
Interest rate | 5.95% | 6.09% | 5.95% | 6.09% | ||||||||||||||||||||||||||||
Sichuan Xinda [Member] | RMB [Member] | ||||||||||||||||||||||||||||||||
Debt face amount | ¥ | ¥ 700,000,000 | ¥ 800,000,000 | ||||||||||||||||||||||||||||||
Obliged to repay | ¥ | ¥ 700,000,000 | ¥ 800,000,000 |
Revenues - Schedule of Revenue
Revenues - Schedule of Revenue (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total Revenue | $ 593,800,000 | $ 290,100,000 | $ 283,200,000 | $ 144,800,000 | $ 310,500,000 | $ 373,200,000 | $ 463,100,000 | $ 301,500,000 | $ 1,311,901,681 | $ 1,448,204,826 |
Modified Polyamide 66 PA66 [Member] | ||||||||||
Total Revenue | 605,205,395 | 426,970,992 | ||||||||
Modified Polyamide 6 PA6 [Member] | ||||||||||
Total Revenue | 394,022,369 | 338,252,200 | ||||||||
Plastic Alloy [Member] | ||||||||||
Total Revenue | 78,422,147 | 245,295,838 | ||||||||
Modified Polypropylene PP [Member] | ||||||||||
Total Revenue | 74,639,857 | 126,535,244 | ||||||||
Modified Acrylonitrile Butadiene Styrene ABS [Member] | ||||||||||
Total Revenue | 24,251,450 | 50,053,441 | ||||||||
Polyoxymethylenes POM [Member] | ||||||||||
Total Revenue | 4,821,272 | 6,906,902 | ||||||||
Polyphenylene Oxide PPO [Member] | ||||||||||
Total Revenue | 32,383,107 | |||||||||
Polylactide PLA [Member] | ||||||||||
Total Revenue | 3,492,236 | 65,142,028 | ||||||||
Polyethylene (PE) [Member] | ||||||||||
Total Revenue | 64,583,993 | 11,546,204 | ||||||||
Semi-finished goods [Member] | ||||||||||
Total Revenue | 58,782,152 | 144,378,419 | ||||||||
Raw Materials [Member] | ||||||||||
Total Revenue | $ 3,680,810 | $ 740,451 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notes to Financial Statements | ||
Impairment of long-lived assets | $ 165,253,409 |
Impairment of Long-Lived Asse_4
Impairment of Long-Lived Assets - Schedule of Impairment Charges for Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment of long-lived assets | $ 165,253,409 | |
Machinery, Equipment and Furniture [Member] | ||
Impairment of long-lived assets | 68,147,876 | |
Workshops and Buildings [Member] | ||
Impairment of long-lived assets | 8,826,892 | |
Construction in Progress [Member] | ||
Impairment of long-lived assets | $ 88,278,641 |
Gains and Losses on Disposal _2
Gains and Losses on Disposal of Subsidiaries (Details Narrative) | Feb. 02, 2019USD ($) | Dec. 19, 2018USD ($) | Dec. 18, 2018USD ($) | Dec. 18, 2018CNY (¥) |
Shanghai Sales [Member] | ||||
Cash consideration | $ 7,300,000 | |||
Gain loss on disposal | $ 200,000 | |||
Shanghai Sales [Member] | RMB [Member] | ||||
Cash consideration | ¥ | ¥ 50,000,000 | |||
Shanghai New Materials R&D [Member] | ||||
Gain loss on disposal | $ 500,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $ 593,800,000 | $ 290,100,000 | $ 283,200,000 | $ 144,800,000 | $ 310,500,000 | $ 373,200,000 | $ 463,100,000 | $ 301,500,000 | $ 1,311,901,681 | $ 1,448,204,826 | ||
Gross profit | 64,000,000 | 34,600,000 | 39,900,000 | 5,200,000 | 43,700,000 | 60,100,000 | 65,300,000 | 50,300,000 | 143,719,381 | 219,395,671 | ||
Net income (loss) | $ (150,200,000) | $ (38,100,000) | $ 17,600,000 | $ (11,000,000) | $ (65,000,000) | $ 17,000,000 | $ 40,100,000 | $ 11,000,000 | $ (181,700,885) | $ 3,055,478 | $ (181,700,885) | $ 3,055,478 |
Earnings per share, Basic | $ (2.13) | $ (0.56) | $ 0.26 | $ (0.16) | $ (0.97) | $ 0.25 | $ 0.60 | $ 0.16 | ||||
Earnings per share, Diluted | $ (2.13) | $ (0.56) | $ 0.26 | $ (0.16) | $ (0.97) | $ 0.25 | $ 0.60 | $ 0.16 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue from Geographic Areas (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total Revenues | $ 593,800,000 | $ 290,100,000 | $ 283,200,000 | $ 144,800,000 | $ 310,500,000 | $ 373,200,000 | $ 463,100,000 | $ 301,500,000 | $ 1,311,901,681 | $ 1,448,204,826 |
UAE [Member] | ||||||||||
Total Revenues | 1,311,900,000 | 1,387,000,000 | ||||||||
CHINA [Member] | ||||||||||
Total Revenues | $ 61,200,000 |
Geographic Information - Sche_2
Geographic Information - Schedule of Long-Lived Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total Long-lived assets | $ 1,336,100,000 | $ 1,371,000,000 |
UAE [Member] | ||
Total Long-lived assets | 1,161,700,000 | 993,200,000 |
CHINA [Member] | ||
Total Long-lived assets | $ 174,400,000 | $ 377,800,000 |
Leases (Details Narrative)
Leases (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating lease term, description | expiring from 2022 through 2085 |
Weighted average remaining lease term | 16 years 3 months 19 days |
Weighted average discount rate | 6.70% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,703,512 | $ 2,307,891 |
Short-term lease cost | 846,060 | 846,060 |
Total lease costs | $ 2,549,572 | $ 3,153,951 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 1,418,719 | |
2022 | 1,419,085 | |
2023 | 1,434,926 | |
2024 | 1,454,238 | |
2025 | 1,454,238 | |
Thereafter | 19,179,416 | |
Total remaining lease payments | 26,360,622 | |
Less: imputed interest | (10,945,058) | |
Total operating lease liabilities | 15,415,564 | |
Less: current portion | (1,323,164) | $ (1,388,555) |
Non-current operating lease liabilities | $ 14,092,400 | $ 14,429,434 |
Weighted-average remaining lease term | 16 years 3 months 19 days | |
Weighted-average discount rate | 6.70% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental of Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 1,525,914 | $ 2,084,533 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Annual Lease Payments (Details) | Dec. 31, 2020USD ($) |
2021 | $ 1,418,719 |
2022 | 1,419,085 |
2023 | 1,434,926 |
2024 | 1,454,238 |
2025 | 1,454,238 |
Thereafter | 19,179,416 |
Operating Leases [Member] | |
2021 | 2,174,439 |
2022 | 1,486,007 |
2023 | 1,486,007 |
2024 | 1,446,251 |
2025 | 1,482,593 |
Thereafter | $ 21,176,139 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - Subsequent Event [Member] | Sep. 29, 2021USD ($) | Feb. 07, 2021USD ($) | Feb. 07, 2021CNY (¥) | Jan. 15, 2021USD ($) | Jan. 15, 2021CNY (¥) | Jan. 21, 2025 | Sep. 29, 2021CNY (¥) |
Debt instrument, interest rate | 1.50% | ||||||
Harbin Fangge Trading Co., Ltd [Member] | Building Selling Contract [Member] | |||||||
Consideration on disposal of property | $ | $ 8,900,000 | ||||||
Harbin Fangge Trading Co., Ltd [Member] | Building Selling Contract [Member] | RMB [Member] | |||||||
Consideration on disposal of property | ¥ | ¥ 58,300,000 | ||||||
Xinda Beijing Investment [Member] | |||||||
Consideration on disposal of property | $ | $ 700,000 | ||||||
Xinda Beijing Investment [Member] | RMB [Member] | |||||||
Consideration on disposal of property | ¥ | ¥ 4,500,000 | ||||||
HLJ Xinda Group-Storage System [Member] | Longjiang Bank, Harbin Branch [Member] | |||||||
Debt instrument, face amount | $ | $ 30,700,000 | ||||||
Debt instrument, maturity date | Sep. 28, 2022 | ||||||
Debt instrument, interest rate | 3.58% | 3.58% | |||||
HLJ Xinda Group-Storage System [Member] | RMB [Member] | Longjiang Bank, Harbin Branch [Member] | |||||||
Debt instrument, face amount | ¥ | ¥ 200,100,000 |