Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jun. 28, 2013 | Mar. 17, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CREG | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 60,910,058 |
Entity Registrant Name | 'CHINA RECYCLING ENERGY CORP | ' | ' |
Entity Central Index Key | '0000721693 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | $22,940,123 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash & equivalents | $7,701,530 | $45,004,304 |
Restricted cash | 2,296,249 | 2,725,002 |
Accounts receivable | 71,573 | 81,819 |
Current portion of investment in sales type leases, net | 9,063,386 | 10,389,028 |
Interest receivable on sales type leases | 765,010 | 912,467 |
Prepaid expenses | 1,045,802 | 49,581 |
Other receivables | 1,813,220 | 121,109 |
Notes receivable | 656,071 | 0 |
Advance to related party | 0 | 440,987 |
Prepaid interest on trust loans | 0 | 816,164 |
Prepaid loan fees - current | 83,649 | 81,139 |
Total current assets | 23,496,490 | 60,621,600 |
NON-CURRENT ASSETS | ' | ' |
Prepaid loan fees - noncurrent | 125,474 | 202,848 |
Investment in sales type leases, net | 175,441,561 | 118,021,435 |
Long term investment | 738,513 | 0 |
Long term deposit | 385,073 | 388,508 |
Property and equipment, net | 44,243 | 68,305 |
Construction in progress | 83,719,596 | 22,993,905 |
Total non-current assets | 260,454,459 | 141,675,001 |
TOTAL ASSETS | 283,950,949 | 202,296,601 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 2,642,662 | 239,722 |
Notes payable - bank acceptances | 5,740,622 | 3,659,216 |
Taxes payable | 1,560,829 | 1,372,535 |
Accrued liabilities and other payables | 1,517,191 | 1,534,829 |
Due to related parties | 2,420,391 | 0 |
Deferred tax liability | 1,442,317 | 2,471,925 |
Bank loans payable - current | 14,925,618 | 13,523,188 |
Trust loans payable - current | 0 | 31,421,526 |
Interest payable on trust loans | 0 | 317,962 |
Cinda note payable | 0 | 3,766,694 |
Accrued interest on Cinda note | 0 | 383,929 |
Interest payable on entrusted loans | 287,887 | 0 |
Current portion of long term payable | 1,441,051 | 1,292,185 |
Total current liabilities | 31,978,568 | 59,983,711 |
NONCURRENT LIABILITIES | ' | ' |
Deferred tax liability, net | 11,884,068 | 6,565,618 |
Refundable deposit from customers for systems leasing | 1,164,526 | 588,656 |
Long term payable | 2,385,422 | 3,711,658 |
Bank loans payable | 18,862,045 | 12,091,321 |
Entrusted loan payable | 62,654,792 | 0 |
Total noncurrent liabilities | 96,950,852 | 22,957,253 |
Total liabilities | 128,929,421 | 82,940,964 |
CONTINGENCIES AND COMMITMENTS | 0 | 0 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, $0.001 par value; 100,000,000 shares authorized, 60,910,058 and 50,224,350 shares issued and outstanding as of December 31, 2013 and 2012 respectively | 60,910 | 50,225 |
Additional paid in capital | 78,130,053 | 58,501,642 |
Statutory reserve | 9,672,754 | 7,766,002 |
Accumulated other comprehensive income | 16,209,403 | 11,554,225 |
Retained earnings | 50,603,291 | 37,107,107 |
Total Company stockholders' equity | 154,676,411 | 114,979,201 |
Noncontrolling interest | 345,117 | 4,376,436 |
Total equity | 155,021,528 | 119,355,637 |
TOTAL LIABILITIES AND EQUITY | $283,950,949 | $202,296,601 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 60,910,058 | 50,224,350 |
Common Stock, Shares, Outstanding | 60,910,058 | 50,224,350 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue | ' | ' | ||
Sales of systems | $62,013,135 | $0 | ||
Contingent rental income | 1,180,055 | 1,245,805 | ||
Total revenue | 63,193,190 | 1,245,805 | ||
Cost of sales | ' | ' | ||
Cost of systems | 47,847,313 | ' | ||
Total cost of sales | 47,847,313 | 0 | ||
Gross profit | 15,345,877 | 1,245,805 | ||
Interest income on sales-type leases | 19,344,855 | 18,234,020 | ||
Total operating income | 34,690,732 | 19,479,825 | ||
Operating expenses | ' | ' | ||
General and administrative | 4,160,742 | 2,693,248 | ||
Loss on project termination | 0 | 2,968,964 | ||
Total operating expenses | 4,160,742 | 5,662,212 | ||
Income from operations | 30,529,990 | 13,817,613 | ||
Non-operating income (expenses) | ' | ' | ||
Interest income | 226,772 | 199,301 | ||
Interest expense | -6,718,729 | -9,246,975 | ||
Changes in fair value of conversion feature liability | 0 | 1,127,400 | ||
Other income (expenses) | -1,335,626 | 247,418 | ||
Total non-operating expenses, net | -7,827,583 | -7,672,856 | ||
Income before income tax | 22,702,407 | 6,144,757 | ||
Income tax expense | 6,886,601 | 2,922,253 | ||
Income before noncontrolling interest | 15,815,806 | 3,222,504 | ||
Less: Income (loss) attributable to noncontrolling interest | 186,270 | -184,491 | ||
Net income attributable to China Recycling Energy Corp | 15,629,536 | 3,406,995 | ||
Other comprehensive items | ' | ' | ||
Foreign currency translation gain attributable to China Recycling Energy Corp | 4,655,178 | 270,035 | ||
Foreign currency translation gain attributable to noncontrolling interest | 3,592 | 10,357 | ||
Comprehensive income attributable to China Recycling Energy Corp | 20,284,714 | 3,677,030 | ||
Comprehensive income (loss) attributable to noncontrolling interest | $189,862 | ($174,134) | ||
Basic weighted average shares outstanding (in shares) | 53,850,289 | 47,560,416 | ||
Diluted weighted average shares outstanding (in shares) | 54,383,418 | [1] | 51,037,255 | [1] |
Basic earnings per share (in dollars per share) | $0.29 | $0.07 | ||
Diluted earnings per share (in dollars per share) | $0.29 | [1] | $0.07 | [1] |
[1] | Interest expense accrued on convertible notes is added back to net income for the computation of diluted EPS. |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Statutory Reserves [Member] | Other Comprehensive Income [Member] | Accumulated Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2011 | $108,212,919 | $46,475 | $55,416,140 | $7,051,843 | $11,284,190 | $34,414,271 | $4,550,570 |
Balance(shares) at Dec. 31, 2011 | ' | 46,474,350 | ' | ' | ' | ' | ' |
Conversion of convertible note | 3,000,000 | 3,750 | 2,996,250 | 0 | 0 | 0 | 0 |
Conversion of convertible note (shares) | ' | 3,750,000 | ' | ' | ' | ' | ' |
Compensation related to stock options and warrants | 89,252 | 0 | 89,252 | 0 | 0 | 0 | 0 |
Net income for year | 3,406,995 | 0 | 0 | 0 | 0 | 3,406,995 | -184,491 |
Transfer to statutory reserves | 0 | 0 | 0 | 714,159 | 0 | -714,159 | 0 |
Foreign currency translation gain | 270,035 | 0 | 0 | 0 | 270,035 | 0 | 10,357 |
Balance at Dec. 31, 2012 | 114,979,201 | 50,225 | 58,501,642 | 7,766,002 | 11,554,225 | 37,107,107 | 4,376,436 |
Balance (shares) at Dec. 31, 2012 | ' | 50,224,350 | ' | ' | ' | ' | ' |
Net income for year | 15,629,536 | 0 | 0 | 0 | 0 | 15,629,536 | 186,270 |
Transfer to statutory reserves | 0 | 0 | 0 | 1,906,752 | 0 | -1,906,752 | 0 |
Foreign currency translation gain | 4,655,178 | 0 | 0 | 0 | 4,655,178 | 0 | 3,592 |
Shares issued for system purchase | 16,481,108 | 8,767 | 16,472,341 | 0 | 0 | 0 | 0 |
Shares issued for system purchase (in shares) | ' | 8,766,547 | ' | ' | ' | ' | ' |
Capital contribution from noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 403,618 |
Exercise of stock options | 1,893 | 1,893 | 0 | 0 | 0 | 0 | 0 |
Exercise of stock options (in shares) | ' | 1,892,672 | ' | ' | ' | ' | ' |
Exercise of warrants | 26 | 26 | 0 | 0 | 0 | 0 | 0 |
Exercise of warrants (in shares) | ' | 26,489 | ' | ' | ' | ' | ' |
Purchase of noncontrolling interest of Erdos TCH | 2,929,469 | 0 | 3,156,069 | 0 | 0 | -226,600 | -4,624,799 |
Balance at Dec. 31, 2013 | $154,676,411 | $60,910 | $78,130,053 | $9,672,754 | $16,209,403 | $50,603,291 | $345,117 |
Balance (shares) at Dec. 31, 2013 | ' | 60,910,058 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Income including noncontrolling interest | $15,815,806 | $3,222,504 |
Adjustments to reconcile income including noncontrolling interest to net cash provided by (used in) operating activities: | ' | ' |
Changes in sales type leases receivables | -62,013,135 | 0 |
Shares issued for system purchase | 16,481,108 | 0 |
Loss on project termination | 0 | 2,968,964 |
Depreciation and amortization | 49,001 | 50,339 |
Amortization of prepaid loan fees | 82,070 | 80,792 |
Amortization of discount related to beneficial conversion feature of convertible note | 0 | 2,140,050 |
Changes in fair value of conversion feature liability | 0 | -1,127,400 |
Stock options and warrants expenses | 0 | 89,252 |
Changes in deferred tax | 3,933,596 | 1,000,411 |
Changes in assets and liabilities: | ' | ' |
Interest receivable on sales type lease | 172,368 | 1,510,166 |
Collection of principal on sales type leases | 10,874,735 | 8,190,346 |
Prepaid expenses | -150,383 | 95,979 |
Accounts receivable | 12,537 | 18,997,219 |
Other receivables | -1,153,941 | 412,918 |
Construction in progress | -58,881,561 | 6,542,060 |
Accounts payable | 4,281,365 | -652,075 |
Taxes payable | 143,084 | -1,570,961 |
Interest payable | -39,157 | -28,075 |
Accrued liabilities and other payables | -47,957 | 252,987 |
Accrued interest on convertible notes | -383,929 | 215,929 |
Long term refundable deposit from customers | 547,134 | 0 |
Net cash provided by (used in) operating activities | -70,277,259 | 42,391,405 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Changes of restricted cash | 503,363 | -2,396,515 |
Acquisition of property & equipment | -23,321 | -1,750 |
Long term investment | -12,793,704 | 0 |
Net cash used in investing activities | -12,313,662 | -2,398,265 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Notes receivable | -643,687 | 82,376 |
Proceeds from loans | 89,633,420 | 4,752,475 |
Repayment of loans | -44,399,439 | -10,297,030 |
Long term payable | -1,307,011 | -1,189,431 |
Contribution from noncontrolling interest | 400,695 | 0 |
Distribution to acquire noncontrolling interest | -226,600 | 0 |
Purchase of noncontrolling interest share | -1,287,374 | 0 |
Advance to related parties | 0 | -479,686 |
Advance from related parties | 2,334,814 | -2,935,805 |
Net cash provided by (used in) financing activities | 44,504,818 | -10,067,101 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH & EQUIVALENTS | 783,328 | 129,012 |
NET (DECREASE) INCREASE IN CASH & EQUIVALENTS | -37,302,774 | 30,055,051 |
CASH & EQUIVALENTS, BEGINNING OF YEAR | 45,004,304 | 14,949,253 |
CASH & EQUIVALENTS, END OF YEAR | 7,701,530 | 45,004,304 |
Supplemental cash flow data: | ' | ' |
Income tax paid | 3,326,464 | 3,427,582 |
Interest paid | 14,294,572 | 9,754,133 |
Supplemental disclosure of non-cash financing activities | ' | ' |
Conversion of convertible debt into common shares | $0 | $3,000,000 |
ORGANIZATION_AND_DESCRIPTION_O
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ' |
1. ORGANIZATION AND DESCRIPTION OF BUSINESS | |
China Recycling Energy Corporation (the “Company” or “CREG”) was incorporated on May 8, 1980 as Boulder Brewing Company under the laws of the State of Colorado. On September 6, 2001, the Company changed its state of incorporation to the State of Nevada. In 2004, the Company changed its name from Boulder Brewing Company to China Digital Wireless, Inc. and on March 8, 2007, the Company again changed its name from China Digital Wireless, Inc. to its current name, China Recycling Energy Corporation. The Company, through its subsidiaries, sells and leases energy saving systems and equipment to its customers. | |
The Company, through its subsidiaries, Shanghai TCH Energy Technology Co., Ltd (“Shanghai TCH”), Xi’an TCH Energy Technology Co., Ltd (“Xi’an TCH”) and Huahong New Energy Technology Co, Ltd (“Huahong”), provides energy saving solution and services, including selling and leasing energy saving systems and equipment to customers. | |
On February 1, 2007, Shanghai TCH, entered into two top gas recovery turbine (“TRT”) systems projects, for the design, construction, installation and operation of TRT projects for each of Zhangzhi Iron and Steel Holdings Ltd. (“Zhangzhi”) and Xingtai Iron and Steel Company, Ltd. (“Xingtai”). These two projects were both completed and put into operation in 2007. The Xingtai power generation system lease term expired in January 2012, at which time the system was transferred to Xingtai. | |
In November 2007, Shanghai TCH signed a cooperative agreement with Shengwei Group to build two sets of 12MW pure low temperature cement waste heat power generator (“CHPG”) systems for Shengwei’s two 2,500-tons-per-day cement manufacturing lines in Jing Yang and for a 5,000-tons-per-day cement manufacturing line in Tong Chuan. At the end of 2008, construction of the CHPG system located in Tong Chuan was completed and put into operation. On June 29, 2009, construction of the CHPG system located in Jing Yang was completed and put into operation. In December 2013, the CHPG system in Tong Chuan reached maturity of the lease term, and the system was transferred to Shengwei. | |
Erdos TCH – Joint Venture | |
On April 14, 2009, the Company formed a joint venture (the “JV”) with Erdos Metallurgy Co., Ltd. (“Erdos”) to recycle waste heat from Erdos’ metal refining plants to generate power and steam to be sold back to Erdos. The name of the JV is Inner Mongolia Erdos TCH Energy Saving Development Co., Ltd with a term of twenty (20) years. Total investment for the project is estimated at $79 million (RMB 500 million) with an initial investment of $17.55 million (RMB 120 million). Erdos contributed 7% of the total investment of the project, and Xi’an TCH contributed 93%. According to the parties’ agreement on profit distribution, Xi’an TCH and Erdos will each receive 80% and 20%, respectively, of the profit from the JV until Xi’an TCH receives the complete return of its investment. Xi’an TCH and Erdos will then receive 60% and 40%, respectively, of the profit from the JV. On June 15, 2013, Xi’an TCH and Erdos entered into a share transfer agreement, pursuant to which Erdos transferred and sold its 7% ownership interest in the JV to Xi’an TCH for $1.29 million (RMB 8 million), plus certain accumulated profits as described below. Xi’an TCH paid the $1.29 million in July 2013 and, as a result, became the sole shareholder of the JV. In addition, Xi’an TCH paid Erdos accumulated profits from inception up to June 30, 2013 in accordance with the supplementary agreement entered on August 6, 2013. In August 2013, Xi’an TCH paid 20% of the accumulated profit (calculated under PRC GAAP) of $226,000 to Erdos. The JV currently has two power generation systems in Phase I with a total of 18MW power capacity, and three power generation systems in Phase II with a total of 27MW power capacity. | |
Pucheng Biomass Power Generation (“BMPG”) Projects | |
On June 29, 2010, Xi’an TCH entered into a Biomass Power Generation Project Lease Agreement with Pucheng Xin Heng Yuan Biomass Power Generation Co., Ltd. (“Pucheng”). Under this lease agreement, Xi’an TCH leased a set of 12MW biomass power generation (“BMPG”) systems to Pucheng at a minimum of $279,400 (RMB 1,900,000) per month for a term of fifteen (15) years. | |
On September 5, 2013, Xi’an TCH entered into a Biomass Power Generation Asset Transfer Agreement (the “Pucheng Transfer Agreement”) with Pucheng Xin Heng Yuan Biomass Power Generation Corporation (“Pucheng”), a limited liability company incorporated in China. The Pucheng Transfer Agreement provided for the sale by Pucheng to Xi’an TCH of a set of 12MW biomass power generation systems with completion of system transformation for a purchase price of RMB 100,000,000 ($16.48 million) in the form of 8,766,547 shares of common stock of the Company at the price of $1.87 per share. These shares were issued to Pucheng on October 29, 2013. Also on September 5, 2013, Xi’an TCH also entered into a Biomass Power Generation Project Lease Agreement with Pucheng (the “Pucheng Lease”). Under the Pucheng Lease, Xi’an TCH will lease this same set of 12MW biomass power generation system to Pucheng, and combine this lease with the lease for the 12MW biomass power generation station of Pucheng Phase I project, under a single lease to Pucheng for RMB 3,800,000 million ($0.63 million) per month (the “Pucheng Phase II Project”). The term for the combined lease is from September 2013 to June 2025, and the lease agreement for the 12MW station from Pucheng Phase I project terminated upon the execution of the Pucheng Lease on September 1, 2013. The ownership of two 12 MW BMPG systems will be transferred to Pucheng at no additional charge when the Pucheng Lease expires. | |
Zhongbao Waste Heat Power Generation (“WHPG”) Projects | |
On September 30, 2010, Xi’an TCH delivered to Zhongbao Binhai Nickel Co., Ltd. (“Zhongbao”) a 7MW capacity waste heat power generation (“WHPG”) system, an integral part of the facilities designed to produce 80,000 tons of nickel-alloy per year according to the recovery and power generation of waste heat agreement with Zhongbao, a nickel-alloy manufacturing joint venture between Zhonggang and Shanghai Baoshan Steel Group established in June 2009. The waste heat agreement with Zhongbao has a term of nine (9) years and provides that Xi’an TCH will recycle waste heat from the nickel-alloy rotary kilns of Zhongbao to generate power and steam, which will be supplied back to Zhongbao. In addition, Xi’an TCH is responsible for applying for the Clean Development Mechanism (“CDM”) under the Kyoto Protocol. Net proceeds from any CDM credit will be distributed between Zhongbao and Xi’an TCH at 60% and 40%, respectively. As of December 31, 2013, Xi’an TCH had not yet commenced the CDM application process. | |
Shenqiu Yuneng Biomass Power Generation (“BMPG”) Projects | |
On May 25, 2011, Xi’an TCH entered into a Letter of Intent with Shenqiu YuNeng Thermal Power Co., Ltd. (“Shenqiu”) to reconstruct and transform a Thermal Power Generation System owned by Shenqiu into a 75T/H Biomass Power Generation System for $3.57 million (RMB 22.5 million). The project commenced in June 2011 and was completed in the third quarter of 2011. On September 28, 2011, Xi’an TCH entered into a Biomass Power Generation Asset Transfer Agreement with Shenqiu (the “Shenqiu Transfer Agreement”). Pursuant to the Shenqiu Transfer Agreement, Shenqiu sold Xi’an TCH a set of 12 MW biomass power generation systems (after Xi’an TCH converted the system for biomass power generation purposes). As consideration for the biomass power generation systems, Xi’an TCH agreed to pay Shenqiu $10,937,500 (RMB 70 million) in cash in three installments within six (6) months upon the transfer of ownership of the systems. By the end of 2012, all of the consideration was paid. On September 28, 2011, Xi’an TCH and Shenqiu also entered into a Biomass Power Generation Project Lease Agreement (the “2011 Shenqiu Lease”). Under the 2011 Shenqiu Lease, Xi’an TCH agreed to lease a set of 12MW biomass power generation systems to Shenqiu at a monthly rental rate of $286,000 (RMB 1,800,000) for eleven (11) years. Upon expiration of the 2011 Shenqiu Lease, ownership of this system will be transferred from Xi’an TCH to Shenqiu at no additional cost. In connection with the 2011 Shenqiu Lease, Shenqiu paid one (1) month’s rent as a security deposit to Xi’an TCH, in addition to providing personal guarantees. | |
On October 8, 2012, Xi’an TCH entered into a Letter of Intent for technical reformation of Shenqiu Project Phase II with Shenqiu for technical reformation to enlarge the capacity of the Shenqiu Project Phase I (the “Shenqui Phase II Project”). The technical reformation involved the construction of another 12MW biomass power generation system. After the reformation, the generation capacity of the power plant increased to 24MW. The project commenced on October 25, 2012 and was completed during the first quarter of 2013. The total cost of the project was $11.1 million (RMB 68 million). On March 30, 2013, Xi’an TCH and Shenqiu entered into a Biomass Power Generation Project Lease Agreement (the “2013 Shenqiu Lease”). Under the 2013 Shenqiu Lease, Xi’an TCH agreed to lease the second set of 12MW biomass power generation systems to Shenqiu for $239,000 (RMB 1.5 million) per month for 9.5 years. When the 2013 Shenqiu Lease expires, ownership of this system will be transferred from Xi’an TCH to Shenqiu at no additional cost. | |
Shanxi Datong Coal Group Power Generation Projects | |
In February 2011, Xi’an TCH entered into an agreement with Shanxi Datong Coal Group Steel Co., Ltd (“Shanxi Datong”) to recycle gas and steam from groups of blast-furnaces and converters at Shanxi Datong’s metal refining plants to generate power and pursuant to which Xi’an TCH agreed to install two 3MW TRT systems, one 15MW WGPG system and two 1MW steam power generation systems, with a total of 23MW power capacity for an estimated total investment of $28.6 million (RMB 180 million). In June 2013, the two 3MW BPRT power generation systems were completed. The lease term is thirty (30) years, during which time Shanxi Datong will pay a service fee to Xi’an TCH. The service fee is based on an average of 8,000 electricity-generating hours per year and $0.05 (RMB 0.33) per kilowatt hour (“kWh”) for the first five (5) years from the completion of each power generation station. For each of the leases, at the 6th, 11th and 21st year anniversary of the date of the lease, the rates will change to RMB 0.3 kWh, 0.27 kWh and 0.25 kWh, respectively. On June 10, 2013, Xi’an TCH and Shanxi Datong entered into a supplemental agreement relating to the minimum service fee. The minimum service fee per month for the first five (5) years is $0.19 million (RMB 1.2 million), $0.18 million ($1.1 million) for the second five (5) years, $0.16 (RMB 1.0 million) for the following ten (10) years and $0.15 million (RMB 0.9 million) for the last ten (10) years. After thirty (30) years, the units will be transferred to Shanxi Datong at no additional charge. | |
Jitie Power Generation Projects | |
In May 2013, Xi’an TCH signed a contract with Sinosteel Jilin Ferroalloys Co., Ltd. (“Jitie”) to build furnace gas waste heat power generation systems for electricity generation from recycled heat and steam from groups of ferroalloy furnaces and electric furnaces (the “Jitie Project”). According to the contract, Xi’an TCH will install a 7.5 MW and a 3 MW turbine power generation system with a total of 10.5 MW power capacity for an estimated total investment of $9.71 million (RMB 60 million). The lease term is twenty-four (24) years. During the term of this lease, Jitie will pay a service fee to Xi’an TCH based on the actual generating capacity with a minimum service fee per month of $300,000 (RMB 1.8 million). Xi’an TCH will be responsible for the systems operation and will own the power generation systems. In December 2013, the Jitie Project was completed and began operations. | |
The Fund Management Company | |
On June 25, 2013, Xi’an TCH and Hongyuan Huifu Venture Capital Co. Ltd (“Hongyuan Huifu”) jointly established Hongyuan Recycling Energy Investment Management Beijing Co., Ltd (the ”Fund Management Company”) with registered capital of RMB 10 million. Xi’an TCH made an initial capital contribution of RMB 4 million ($650,000) and has a 40% ownership interest in the Fund Management Company. With respect to the Fund Management Company, voting rights and dividend rights are allocated 80% and 20% between Hongyuan Huifu and Xi’an TCH, respectively. | |
The Fund Management Company serves as the general partner of Beijing Hongyuan Recycling Energy Investment Center, LLP (the “HYREF Fund”), a limited liability partnership established on July 18, 2013 in Beijing. The Fund Management Company made an initial capital contribution of RMB 5 million ($830,000) to the HYREF Fund. An initial total amount of RMB 460 million ($75 million) has been fully subscribed by all partners for the HYREF Fund. The HYREF Fund has three limited partners: (1) China Orient Asset Management Co., Ltd., which made an initial capital contribution of RMB 280 million ($46.67 million) to the HYREF Fund and is a preferred limited partner; (2) Hongyuan Huifu, which made an initial capital contribution of RMB 100 million ($16.67 million) to the HYREF Fund and is an ordinary limited partner; and (3) the Company’s wholly-owned subsidiary, Xi’an TCH, which made an initial capital contribution of RMB 75 million ($12.5 million) to the HYREF Fund and is a secondary limited partner. The term of the HYREF Fund’s partnership is six (6) years from the date of its establishment, expiring on July 18, 2019. The term is three (3) years from the date of contribution for the preferred limited partner, or four (4) years from the date of contribution for the ordinary limited partner. The total size of the HYREF Fund is RMB 460 million (approximately $76.66 million). The HYREF Fund was formed for the purpose of investing in Xi’an Zhonghong New Energy Technology Co., Ltd., a 90% owned subsidiary of Xi’an TCH, for the construction of two coke dry quenching (“CDQ”) waste heat power generation stations with Jiangsu Tianyu Energy and Chemical Group Co., Ltd. (“Tianyu”) and one CDQ waste heat power generation station with Boxing County Chengli Gas Supply Co., Ltd. (“Chengli”). | |
Chengli Waste Heat Power Generation (“WHPG”) Projects | |
On July 19, 2013, Xi’an TCH formed a new company “Xi’an Zhonghong New Energy Technology Co., Ltd” (“Zhonghong”) with registered capital of RMB 30 million ($4.85 million). Xi’an TCH paid RMB 27 million ($4.37 million) and owns 90% of Zhonghong. Zhonghong is engaged to provide energy saving solution and services, including constructing, selling and leasing energy saving systems and equipment to customers. | |
On July 24, 2013, Zhonghong entered into a Cooperative Agreement of Coke Dry Quenching (CDQ) and CDQ Waste Heat Power Generation Project with Boxing County Chengli Gas Supply Co., Ltd. (“Chengli”). The parties entered into a supplement agreement on July 26, 2013. Pursuant to these agreements, Zhonghong will design, build and maintain a 25 MW CDQ system and a CDQ waste heat power generation system to supply power to Chengli, and Chengli will pay energy saving fees (the “Chengli Project”). Chengli will contract the operation of the system to a third party contractor that is mutually agreed to by Zhonghong. In addition, Chengli will provide the land for the CDQ system and CDQ waste heat power generation system at no cost to Zhonghong. The term of the Agreements is for twenty (20) years. The first 800 million watt hours generated by the Chengli Project will be charged at RMB 0.42 ($0.068) per kilowatt hour (excluding tax); thereafter, the energy saving fee will be RMB 0.20 ($0.036) per kilowatt hour (excluding tax). The operating time shall be based upon an average 8,000 hours annually. If the operating time is less than 8,000 hours per year due to a reason attributable to Chengli, then time charged shall be 8,000 hours a year, and if it is less than 8,000 hours due to a reason attributable to Zhonghong, then it shall be charged at actual operating hours. The construction of the Chengli Project is anticipated to be completed twelve (12) months from the date the parties enter into a Technical Agreement. When operations begin, Chengli shall ensure its coking production line works properly and that working hours for the CDQ system are at least 8,000 hours per year, and Zhonghong shall ensure that working hours and the CDQ waste heat power generation system will be at least 7,200 hours per year. | |
On July 22, 2013, Zhonghong entered into a EPC (Engineering, Procurement and Construction) General Contractor Agreement for the Boxing County Chengli Gas Supply Co., Ltd. CDQ Power Generation Project (the “Huaxin Project”) with Xi’an Huaxin New Energy Co., Ltd. (“Huaxin”). Zhonghong, as the owner of the Huaxin Project, contracted engineering, procurement and construction services for a CDQ system and a 25 MW CDQ waste heat power generation system for Chengli to Huaxin. Huaxin shall provide construction, equipment procurement, transportation, installation and adjustment, test run, construction engineering management and other necessary services to complete the Huaxin Project and ensure the CDQ system and CDQ waste heat power generation system for Chengli meet the inspection and acceptance requirements and work normally. The Huaxin Project is a turn-key project where Huaxin is responsible for monitoring the quality, safety, duration and cost of the project. The total contract price is RMB 200 million (approximately $33.34 million), which includes all the materials, equipment, labor, transportation, electricity, water, waste disposal, machinery and safety costs. | |
Tianyu Waste Heat Power Generation (“WHPG”) Project | |
On July 19, 2013, Zhonghong entered into a Cooperative Agreement (the “Tianyu Agreement”) for Energy Management of Coke Dry Quenching (CDQ) and CDQ Waste Heat Power Generation Project with Jiangsu Tianyu Energy and Chemical Group Co., Ltd (“Tianyu”). Pursuant to the Tianyu Agreement, Zhonghong will design, build, operate and maintain two sets of 25 MW CDQ systems and CDQ WHPG systems for two subsidiaries of Tianyu – Xuzhou Tian’an Chemical Co., Ltd (“Xuzhou Tian’an”) and Xuzhou Huayu Coking Co., Ltd (“Xuzhou Huayu”) – to be located at Xuzhou Tian’an and Xuzhou Huayu’s respective locations (the “Tianyu Project”). Upon completion of the Tianyu Project, Zhonghong will charge Tianyu an energy saving service fee of RMB 0.534 ($0.087) per kilowatt hour (excluding tax). The operating time will be based upon an average 8,000 hours annually. If the operating time is less than 8,000 hours per year due to a reason attributable to Tianyu, then time charged will be 8,000 hours a year. The construction of the Tianyu Project is anticipated to be completed in fourteen (14) months from the date the parties enter into a Technical Agreement. Tianyu will provide the land for the CDQ systems and CDQ waste heat power generation systems for free. Tianyu also guarantees that it will purchase all of the power generated by the CDQ WHPG systems. | |
On July 22, 2013, Zhonghong entered into a EPC (Engineering, Procurement and Construction) General Contractor Agreement for the Boxing County Chengli Gas Supply Co., Ltd. CDQ Power Generation Project (the “Huaxin Project”) with Xi’an Huaxin New Energy Co., Ltd. (“Huaxin”). Zhonghong, as the owner of the Huaxin Project, contracted engineering, procurement and construction services for a CDQ system and a 25 MW CDQ waste heat power generation system for Chengli to Huaxin. Huaxin shall provide construction, equipment procurement, transportation, installation and adjustment, test run, construction engineering management and other necessary services to complete the Huaxin Project and ensure the CDQ system and CDQ waste heat power generation system for Chengli meet the inspection and acceptance requirements and work normally. The Huaxin Project is a turn-key project where Huaxin is responsible for monitoring the quality, safety, duration and cost of the project. The total contract price is RMB 200 million (approximately $33.34 million), which includes all the materials, equipment, labor, transportation, electricity, water, waste disposal, machinery and safety costs. | |
Zhongtai Waste Heat Power Generation Energy Management Cooperative Agreement | |
On December 6, 2013, Xi’an entered into a CDQ” and Waste Heat Power Generation Energy Management Cooperative Agreement (the “Agreement”) with Xuzhou Zhongtai Energy Technology Co., Ltd. ( “Zhongtai”), a limited liability company incorporated in Jiangsu Province, China. | |
Pursuant to the Agreement, Xi’an TCH will design, build and maintain a 150 ton per hour CDQ system and a 25 MW CDQ waste heat power generation system and sell the power to Zhongtai, and Xi’an TCH will also build a furnace to generate steam from the waste heat of the smoke pipeline and sell the steam to Zhongtai. | |
The construction period of the Project is expected to be 18 months from the date when conditions are ready for construction to begin. Zhongtai will start to pay an energy saving service fee from the date when the waste heat power generation station passes the required 72 hour test run. The term of payment is for 20 years. For the first 10 years of the term, Zhongtai shall pay an energy saving service fee at RMB 0.534 ($0.089) per kilowatt hour (including value added tax) for the power generated from the system. For the second 10 years of the term, Zhongtai shall pay an energy saving service fee at RMB 0.402 ($0.067) per kilowatt hour (including value added tax). During the term of the contract the energy saving service fee shall be adjusted at the same percentage as the change of local grid electricity price. Zhongtai shall also pay an energy saving service fee for the steam supplied by Xi’an TCH at RMB 100 ($16.67) per ton (including value added tax). Zhongtai and its parent company will provide guarantees to ensure Zhongtai will fulfill its obligations under the Agreement. Upon the completion of the term, Xi’an TCH will transfer the systems to Zhongtai at RMB 1. Zhongtai shall provide waste heat to the systems for no less than 8,000 hours per year and waste gas volume no less than 150,000 Nm3 per hour with a temperature no less than 950°C. If these requirements are not met, the term of the Agreement will be extended accordingly. If Zhongtai wants to terminate the Agreement early, it shall provide Xi’an TCH a 60 day notice and pay the termination fee and compensation for the damages to Xi’an TCH according to the following formula: 1) if it is less than 5 years into the term when Zhongtai requests termination, Zhongtai shall pay: Xi’an TCH’s total investment amount plus Xi’an TCH’s annual investment return times (5 years minus the years of which the system has already operated); 2) if it is more than 5 years into the term when Zhongtai requests the termination, Zhongtai shall pay: Xi’an TCH’s total investment amount minus total amortization cost (the amortization period is 10 year). | |
Rongfeng CDQ Power Generation Energy Management Cooperative Agreement | |
On December 12, 2013, Xi’an TCH entered into a CDQ Power Generation Energy Management Cooperative Agreement (with Tangshan Rongfeng Iron & Steel Co., Ltd. (“Rongfeng”), a limited liability company incorporated in Hebei Province, China. | |
Pursuant to the Agreement, Xi’an TCH will design, build and maintain a CDQ system and a CDQ waste heat power generation system and sell the power to Rongfeng. The construction period of the Project is expected to be 18 months after the Agreement takes effect and from the date when conditions are ready for construction to begin. | |
Rongfeng will start to pay an energy saving service fee from the date when the waste heat power generation station passes the required 72 hour test run. The term of payment is for 20 years. For the first 10 years of the term, Rongfeng shall pay an energy saving service fee at RMB 0.582 ($0.095) per kilowatt hour (including tax) for the power generated from the system. For the second 10 years of the term, Rongfeng shall pay an energy saving service fee at RMB 0.432 ($0.071) per kilowatt hour (including tax). During the term of the contract the energy saving service fee shall be adjusted at the same percentage as the change of local grid electricity price. Rongfeng and its parent company will provide guarantees to ensure Rongfeng will fulfill its obligations under the Agreement. Upon the completion of the term, Xi’an TCH will transfer the systems to Rongfeng at RMB 1. Rongfeng shall provide waste heat to the systems for no less than 8,000 hours per year with a temperature no less than 950°C. If these requirements are not met, the term of the Agreement will be extended accordingly. If Rongfeng wants to terminate the Agreement early, it shall provide Xi’an TCH a 60 day notice and pay the termination fee and compensation for the damages to Xi’an TCH according to the following formula: 1) if it is less than 5 years (including 5 years) into the term when Rongfeng requests termination, Rongfeng shall pay: Xi’an TCH’s total investment amount plus Xi’an TCH’s average annual investment return times (5 years minus the years of which the system has already operated); 2) if it is more than 5 years into the term when Rongfeng requests the termination, Rongfeng shall pay: Xi’an TCH’s total investment amount minus total amortization cost (the amortization period is 10 year). | |
Summary of 2013 Sales and Sales-Types Leases | |
As of December 31, 2013, Xi’an TCH leased TRT systems to Zhangzhi with terms of 13 years; and leased CHPG systems to Jing Yang Shengwei for 5 years, BMPG systems to Pucheng Phase I and II for 15 and 10 years respectively, BMPG systems to Shenqiu Phase I for 11 years and Shenqiu Phase II for 9.5 years, WHPG system of Zhongbao for 9 years, WHPG systems of Jitie for 24 years, and Shanxi Datong two TRT systems for 30 years, and Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five projects) for 20 years | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation | ||||||||
The consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the SEC for annual financial statements. | ||||||||
Basis of Consolidation | ||||||||
The consolidated financial statements include the accounts of CREG and its subsidiary, Sifang Holdings, its wholly owned subsidiaries, Huahong New Energy Technology Co., Ltd. (“Huahong”) and Shanghai TCH, Shanghai TCH’s wholly-owned subsidiary, Xi’an TCH Energy Tech Co., Ltd. (“Xi’an TCH”) and Xi’an TCH’s subsidiaries, Erdos TCH Energy Saving Development Co., Ltd (“Erdos TCH”), 100% owned by Xi’an TCH (See note 1), and Zhonghong, 90% owned by Xi’an TCH. Substantially all of the Company’s revenues are derived from the operations of Shanghai TCH and its subsidiaries, which represent substantially all of the Company’s consolidated assets and liabilities as of December 31, 2013 and 2012, respectively. All significant inter-company accounts and transactions were eliminated in consolidation. | ||||||||
Use of Estimates | ||||||||
In preparing these consolidated financial statements in accordance with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets as well as revenues and expenses during the period reported. Actual results may differ from these estimates. | ||||||||
Revenue Recognition | ||||||||
Sales-type Leasing and Related Revenue Recognition | ||||||||
The Company constructs and leases waste energy recycling power generating projects to its customers. The Company typically transfers ownership of the waste energy recycling power generating projects to its customers at the end of the lease. The investment in these projects is recorded as investment in sales-type leases in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 13, “Accounting for Leases” (codified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 840) and its various amendments and interpretations. The Company finances construction of waste energy recycling power generating. The sales and cost of sales are recognized at the inception of lease. The investment in sales-type leases consists of the sum of the minimum lease payments receivable less unearned interest income and estimated executory cost. Minimum lease payments are part of the lease agreement between the Company (as the lessor) and the customer (as the lessee). The discount rate implicit in the lease is used to calculate the present value of minimum lease payments. The minimum lease payment consists of the gross lease payments net of executory costs and contingent rentals, if any. Unearned interest income is amortized to income over the lease term to produce a constant periodic rate of return on net investment in the lease. While revenue is recognized at the inception of the lease, the cash flow from the sales-type lease occurs over the course of the lease, which results in interest income and reduction of receivables. Revenue is recognized net of sales tax. | ||||||||
Contingent Rental Income | ||||||||
The Company records income from actual electricity usage in addition to minimum lease payments of each project as contingent rental income in the period contingent rental income is earned. Contingent rent is not part of minimum lease payments. | ||||||||
Cash and Equivalents | ||||||||
Cash and equivalents includes cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three (3) months or less as of the purchase date of such investments. | ||||||||
Accounts Receivable | ||||||||
As of December 31, 2013 and December 31, 2012, the Company had accounts receivable of $71,573 and $81,819, respectively, from contingent rental income. | ||||||||
Concentration of Credit Risk | ||||||||
Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts. | ||||||||
Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. | ||||||||
The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC. | ||||||||
Property and Equipment | ||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method over the estimated lives as follows: | ||||||||
Building | 20 years | |||||||
Vehicles | 2 - 5 years | |||||||
Office and Other Equipment | 2 - 5 years | |||||||
Software | 2 - 3 years | |||||||
Impairment of Long-life Assets | ||||||||
In accordance with SFAS 144 (codified in FASB ASC Topic 360), the Company reviews its long-lived assets, including property, plant and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If the total expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There was no impairment as of December 31, 2013 and 2012. | ||||||||
Cost of Sales | ||||||||
Cost of sales consists primarily of the direct material of the power generating system and expenses incurred directly for project construction for sales-type leasing. | ||||||||
Income Taxes | ||||||||
The Company utilizes SFAS No. 109, “Accounting for Income Taxes,” (codified in FASB ASC Topic 740), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | ||||||||
The Company follows FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN 48”), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. As of December 31, 2013 and 2012, the Company had not taken any uncertain positions that would necessitate recording of tax related liability. | ||||||||
Non-Controlling Interests | ||||||||
The Company follows FASB ASC Topic 810, “Consolidation,” which established new standards governing the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability (as was previously the case), that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to NCIs even when such allocation might result in a deficit balance. | ||||||||
The net income (loss) attributed to NCIs was separately designated in the accompanying statements of income and other comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. | ||||||||
Statement of Cash Flows | ||||||||
In accordance with SFAS No. 95, “Statement of Cash Flows” (codified in FASB ASC Topic 230), cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. | ||||||||
Fair Value of Financial Instruments | ||||||||
For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, other receivables, accounts payable, accrued liabilities and short-term debts, the carrying amounts approximate their fair values due to their short maturities. Receivables on sales-type leases are based on interest rates implicit in the lease. | ||||||||
ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value (“FV”) of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: | ||||||||
⋅ | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||
⋅ | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |||||||
⋅ | Level 3 inputs to the valuation methodology are unobservable and significant to FV measurement. | |||||||
The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | ||||||||
The following are the considerations with respect to disclosures of FV of long-term debt obligations: | ||||||||
As of December 31, 2013, the Company’s long-term debt obligations consisted of the following: (i) bank loans payable of $18.86 million, (ii) a long-term payable for a sale-leaseback transaction of $2.39 million, and (iii) entrusted loan of $62.65 million. As of December 31, 2012, the Company’s long-term debt obligations consisted of (i) bank loans payable of $12.09 million and (ii) a long-term payable for a sale-leaseback transaction of $3.71 million. | ||||||||
FV measurements and approximations for certain financial instruments are based on what a reporting entity would likely have to pay to transfer the financial obligation to an entity with a comparable credit rating. The Company’s bank loans and trust loans payable are privately held (i.e., nonpublic) debt; therefore, pricing inputs are not observable. For this reason, the Company classified bank loans and trust loans payable as a Level 3 FV measurement in the valuation hierarchy. | ||||||||
For each of the Company’s long term debt obligations noted above, the Company believes the carrying amounts approximate their FV. Based on the Company’s understanding of the credit markets, the Company’s business is in a sector (energy-saving green) that is supported by the PRC government and the lending bank, the Company believes it could have obtained similar loans on similar terms and interest rates. In addition, in connection with the FV measurement, the Company considered nonperformance risk (including credit risk) relating to the debt obligations, including the following: (i) the Company is considered a low credit risk customer to the lending bank and its creditors; (ii) the Company has a good history of making timely payments and have never defaulted on any loans; and (iii) the Company has a stable and continuous cash inflow from collections from its sales-type lease of energy saving projects. | ||||||||
As of December 31, 2013 and 2012, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV other than the sale-lease back transaction of $2.39 million described above (See Note 14). | ||||||||
Stock Based Compensation | ||||||||
The Company accounts for its stock-based compensation in accordance with SFAS No. 123R, “Share-Based Payment, an Amendment of FASB Statement No. 123” (codified in FASB ASC Topic 718 and 505). The Company recognizes in its statement of operations FV at the grant date for stock options and other equity-based compensation issued to employees and non-employees. | ||||||||
Basic and Diluted Earnings per Share | ||||||||
The Company presents net income (loss) per share (“EPS”) in accordance with SFAS No. 128, “Earnings per Share” (codified in FASB ASC Topic 740). Accordingly, basic income (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares outstanding, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income by the weighted-average number of common shares outstanding as well as common share equivalents outstanding for the period determined using the treasury-stock method for stock options and warrants and the if-converted method for convertible notes. The Company made an accounting policy election to use the if-converted method for convertible securities that are eligible to receive common stock dividends, if declared. Diluted EPS reflect the potential dilution that could occur based on the exercise of stock options or warrants or conversion of convertible securities using the if-converted method. The following table presents a reconciliation of basic and diluted EPS: | ||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the years ended December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Net income for common shares | $ | 15,629,536 | $ | 3,406,995 | ||||
Interest expense on convertible notes* | - | 383,929 | ||||||
Net income for diluted shares | $ | 15,629,536 | $ | 3,622,924 | ||||
Weighted average shares outstanding – basic | 53,850,289 | 47,560,416 | ||||||
Effect of dilutive securities: | ||||||||
Convertible notes | - | 2,663,934 | ||||||
Options granted | 533,129 | 812,905 | ||||||
Warrants granted | - | - | ||||||
Weighted average shares outstanding – diluted | 54,383,418 | 51,037,255 | ||||||
Earnings per share – basic | $ | 0.29 | $ | 0.07 | ||||
Earnings per share – diluted | $ | 0.29 | $ | 0.07 | ||||
* Interest expense on convertible notes was added back to net income for the computation of diluted EPS. | ||||||||
Foreign Currency Translation and Comprehensive Income (Loss) | ||||||||
The Company’s functional currency is the Renminbi (“RMB”). For financial reporting purposes, RMB were translated into United States Dollars (“USD” or “$”) as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income.” Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. | ||||||||
The Company uses SFAS 130 “Reporting Comprehensive Income” (codified in FASB ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. | ||||||||
Segment Reporting | ||||||||
SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” (codified in FASB ASC Topic 280) requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. SFAS 131 has no effect on the Company’s financial statements as substantially all of the Company’s operations are conducted in one industry segment. All of the Company’s assets are located in the PRC. | ||||||||
New Accounting Pronouncements | ||||||||
In February 2013, the FASB issued ASU 2013-2, Comprehensive Income (ASC Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, the new ASU requires entities to disclose in a single location (either on the face of the financial statement that reports net income or in the notes) the effects of reclassifications out of accumulated other comprehensive income (AOCI). For items reclassified out of AOCI and into net income in their entirety, entities must disclose the effect of the reclassification on each affected net income item. For AOCI reclassification items that are not reclassified in their entirety into net income, entities must provide a cross-reference to other required U.S. GAAP disclosures. There is no change in the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements. The ASU does not change the items currently reported in other comprehensive income. | ||||||||
For public entities, the new disclosure requirements are effective for annual reporting periods beginning after December 15, 2012, and interim periods within those years (i.e., the second quarter of 2013 for entities with calendar year-ends). The ASU applies prospectively, and early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | ||||||||
As of December 31, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s annual consolidated financial statements. | ||||||||
NET_INVESTMENT_IN_SALESTYPE_LE
NET INVESTMENT IN SALES-TYPE LEASES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
NET INVESTMENT IN SALES-TYPE LEASES | ' | |||||||
3. NET INVESTMENT IN SALES-TYPE LEASES | ||||||||
Under sales-type leases, Xi’an TCH leased TRT system to Zhangzhi with terms of 13 years; and leased CHPG systems to Jing Yang Shengwei for 5 years, BMPG systems to Pucheng Phase I and II for 15 and 10 years respectively, BMPG systems to Shenqiu Phase I for 11 years and Shenqiu Phase II for 9.5 years, WHPG system of Zhongbao for 9 years, WHPG systems of Jitie for 24 years, and Datong two TRT systems for 30 years, and Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five projects) for 20 years: | ||||||||
2013 | 2012 | |||||||
Total future minimum lease payments receivable | $ | 560,187,391 | $ | 380,608,263 | ||||
Less: executory cost | -134,447,605 | -113,529,216 | ||||||
Less: unearned interest income | -241,234,839 | -138,668,584 | ||||||
Net investment in sales - type leases | 184,504,947 | 128,410,463 | ||||||
Current portion | 9,063,386 | 10,389,028 | ||||||
Noncurrent portion | $ | 175,441,561 | $ | 118,021,435 | ||||
As of December 31, 2013, the future minimum rentals to be received on non-cancelable sales-type leases by years are as follows: | ||||||||
2014 | $ | 42,518,204 | ||||||
2015 | 39,462,788 | |||||||
2016 | 39,462,788 | |||||||
2017 | 39,462,788 | |||||||
2018 | 39,369,967 | |||||||
Thereafter | 359,910,856 | |||||||
Total | $ | 560,187,391 | ||||||
RESTRICTED_CASH_NOTES_PAYABLE_
RESTRICTED CASH, NOTES PAYABLE - BANK ACCEPTANCES | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Cash Notes Payable Bank Acceptances [Abstract] | ' |
RESTRICTED CASH, NOTES PAYABLE -BANK ACCEPTANCES | ' |
4. RESTRICTED CASH, NOTES PAYABLE – BANK ACCEPTANCES | |
Restricted cash as of December 31, 2013 and 2012 was $2,296,249 and $2,725,002 (of which, $954,578 was deposited as a principal-guaranteed financial investment product with a term of six months at December 31, 2012), respectively, held by the bank as collateral to issue bank acceptances. The Company endorses bank acceptances to vendors as payment of its own obligations. Most of the bank acceptances have maturities of less than six months. | |
PREPAID_EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' |
PREPAID EXPENSES | ' |
5. PREPAID EXPENSES | |
Prepaid expenses mainly consisted of prepayment for office rental and decorations, and consulting fees for the Company’s RMB 460 million ($74 million) funding project. Before the Fund released the money to Zhonghong, Xi'an TCH paid 2% of the funds raised, i.e. RMB 9.2 million ($1.5 million) to the Fund Management Company as a consulting fee and it shall pay such 2% on the amount of funds actually contributed as an annual management fee on every 365 day anniversary thereafter until Zhonghong fully repays the loan and the Fund no longer has an ownership interest in Zhonghong. The Company prepaid consulting expense for the Fund of $1.5 million, and amortized $616,866 prepaid consulting expense during the year ended December 31, 2013. | |
CONSTRUCTION_IN_PROGRESS
CONSTRUCTION IN PROGRESS | 12 Months Ended |
Dec. 31, 2013 | |
Receivables, Long-Term Contracts Or Programs [Abstract] | ' |
CONSTRUCTION IN PROGRESS | ' |
6. CONSTRUCTION IN PROGRESS | |
Construction in progress was for constructing power generation systems. As of December 31, 2013, the Company had construction in progress of $83.72 million, including $17.01 million for Shanxi Datong Coal Group one 15MW WGPG and two 1MW steam power generation projects; $25.54 million for Xuzhou Huayu project, $17.19 for Xuzhou Tian’an project and $23.98 million for Shandong Boxing project. As of December 31, 2012, the Company had construction in progress of $19.27 million for Shanxi Datong Coal Group two 3 MW TRT systems and $3.72 million for Shenqiu Project Phase II. Shenqiu Project Phase II was completed at the end of March 2013. The two 3 MW TRT systems of Shanxi Datong project were completed and sold in the second quarter of 2013. As of December 31, 2013, the Company was committed to pay an additional $3.77 million for the Shanxi Datong Coal Group Power Generation project, $8.20 million for Xuzhou Huayu project, $16.40 million for Xuzhou Tian’an project, and $9.84 million for Shandong Boxing project. | |
TAXES_PAYABLE
TAXES PAYABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Taxes Payable [Abstract] | ' | |||||||
TAXES PAYABLE | ' | |||||||
7. TAXES PAYABLE | ||||||||
Taxes payable consisted of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Income | $ | 806,231 | $ | 689,532 | ||||
Business | 316,486 | 257,378 | ||||||
VAT arising from transfer WGPG to Shenmu | 393,643 | 381,832 | ||||||
Other | 44,470 | 43,793 | ||||||
$ | 1,560,829 | $ | 1,372,535 | |||||
ACCRUED_LIABILITIES_AND_OTHER_
ACCRUED LIABILITIES AND OTHER PAYABLES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | |||||||
ACCRUED LIABILITIES AND OTHER PAYABLES | ' | |||||||
8. ACCRUED LIABILITIES AND OTHER PAYABLES | ||||||||
Accrued liabilities and other payables consisted of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Employee training, labor union expenditure and social insurance payable | $ | 521,373 | $ | 372,521 | ||||
Consulting, auditing, and legal expenses | 403,860 | 618,957 | ||||||
Accrued payroll and welfare | 318,871 | 291,310 | ||||||
Accrued system maintenance expense | 49,205 | 47,729 | ||||||
Other | 223,882 | 204,312 | ||||||
Total | $ | 1,517,191 | $ | 1,534,829 | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
9. RELATED PARTY TRANSACTIONS | |
As of December 31, 2013, due to related parties totaled $2,420,391, including $2,379,734 advance from the Company’s CEO which was repaid in February 24, 2014; and $40,657 in advances from the Company’s management, which bore no interest, and were payable on demand. | |
As of December 31, 2012, advances to related parties totaled $440,987, including $481,863 to Erdos, as a receivable for maintenance fee and tax expense, net of a $40,876 in advances from the Company’s management, which bore no interest, and were payable on demand. | |
Erdos TCH sold all power generation stations through sales type leases to Erdos Metallurgy Co., Ltd., the non-controlling interest holder, Erdos Metallurgy sold all its ownership shares in Erdos TCH to Xi’an TCH; as a result Erdos Metallurgy is no longer a related party (See note 1). | |
LONG_TERM_INVESTMENT
LONG TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2013 | |
Long-term Investments [Abstract] | ' |
LONG TERM INVESTMENT | ' |
10. LONG TERM INVESTMENT | |
On June 25, 2013 Xi’an TCH with Hongyuan Huifu Venture Capital Co. Ltd (“HHVC”) jointly established Hongyuan Recycling Energy Investment Management Beijing Co., Ltd (the "Fund Management Company") with registered capital of RMB 10 million ($1.6 million), to manage a fund that will be used for financing a coke dry quenching (“CDQ”) waste heat power generation project. Xi’an TCH made an initial capital contribution of RMB 4 million ($0.65 million) and has a 40% ownership interest in Fund Management Company. Voting rights and dividend rights are allocated between Hongyuan Huifu and Xi'an TCH at 80% and 20%, respectively. The Company accounted for this investment using equity Method. The Company recorded $162,956 equity based investment income during the year ended December 31, 2013; however it was eliminated with financial fee of Xi’an TCH as 100% of Fund Management Company’s revenue is from Xi’an TCH’s financial fee. Xi’an TCH paid $1.6 million one-time commission (recorded as other expense) to the Fund Management Company for initiating and completion of the Fund financing for the Company. | |
On July 18, 2013, Beijing Hongyuan Recycling Energy Investment Center, LLP (the “HYREF Fund”) was established as a limited liability partnership in Beijing. Pursuant to the Partnership Agreement, the HYREF Fund has a general partner, the Fund Management Company, which made an initial capital contribution of RMB 5 million ($0.83 million) to the HYREF Fund. The HYREF Fund has three limited partners: (1) China Orient Asset Management Co., Ltd., which made an initial capital contribution of RMB 280 million ($46.67 million) and is a preferred limited partner, (2) Hongyuan Huifu, which made an initial capital contribution of RMB 100 million ($16.67 million) and is an ordinary limited partner and (3) the Company’s wholly-owned subsidiary, Xian TCH, which made an initial capital contribution of RMB 75 million ($12.5 million) and is a secondary limited partner. The term of the HYREF Fund’s partnership is six (6) years from the date of its establishment, July 18, 2013. The term for the preferred limited partner is three (3) years from the date of its contribution and for the ordinary limited partner is four (4) years from the date of its contribution. Unless otherwise approved by the general partner (the Fund Management Company), upon the expiration of their respective terms, each partner shall exit from the partnership automatically. The total size of the HYREF Fund is RMB 460 million ($75.0 million), and the purpose of the HYREF Fund is to invest in Zhonghong for constructing 3 new CDQ WHPG projects. Xi’an TCH owns 16.3% of the HYREF Fund. The Company accounted for this investment using the cost method. The Company netted off the investment of RMB 75 million ($12.30 million) by Xi’an TCH with the entrusted loan payable of the HYREF Fund by Xi’an TCH. | |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2013 | |
Noncontrolling Interest [Abstract] | ' |
NONCONTROLLING INTEREST | ' |
11. NONCONTROLLING INTEREST | |
“Non-controlling interest” was a 7% equity interest of Erdos TCH (the “JV”) owned by Erdos Metallurgy Co., Ltd. (“Erdos”). According to Xi’an TCH and Erdos’ agreement on profit distribution, Xi’an TCH and Erdos would receive 80% and 20%, respectively, of the profit from the JV, until Xi’an TCH has received the complete return of its investment. Xi’an TCH and Erdos would then receive 60% and 40%, respectively, of the profit from the JV. | |
As of June 15, 2013, the total registered capital of Erdos TCH was $17.55 million (RMB 120,000,000), of which, $16.37 million (RMB 112 million) was contributed by Xi’an TCH, and $1.18 million (RMB 8 million) was from Erdos Metallurgy. Erdos TCH engages in a business similar to that of Xi’an TCH. On June 15, 2013, Xi’an and Erdos Metallurgy entered into a share purchase agreement. Xi’an will pay Erdos Metallurgy $1.29 million (RMB 8 million) for the 7% equity interest of Erdos TCH and then become 100% owner of Erdos TCH. In addition, Erdos TCH distributed 20% of the accumulated profit (calculated under PRC GAAP) to Erdos Metallurgy up to June 30, 2013, in accordance with the supplementary agreement entered on August 6, 2013. In July 2013, Xi’an paid $1.29 million (RMB 8 million) to Erdos Metallurgy, and in August 2013, Xi’an TCH paid 20% of the accumulated profit (calculated under PRC GAAP) in the amount of $226,000 to Erdos Metallurgy. | |
On July 15, 2013, Xi’an TCH with Hongyuan Investment Center jointly established Xi’an Zhonghong New Energy Technology (“Zhonghong”) with registered capital of RMB 30 million ($4.88 million), to manage new projects. Xi’an TCH paid RMB 27 million ($4.37 million) and owns 90% of Zhonghong while Investment Center owns 10% of Zhonghong as noncontrolling interest of Zhonghong. | |
In addition, the Investment Center was 16.3% owned by Xi’an TCH and 1.1% owned by the Fund Management Company, and the Fund Management Company was 40% owned by Xi’an TCH as described in Note 10, which resulted in an additional indirect ownership of Xi’an TCH in Zhonghong of 1.7%; accordingly, the ultimate noncontrolling interest (Investment Center) in Zhonghong became 8.3%. | |
DEFERRED_TAX
DEFERRED TAX | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Tax [Abstract] | ' | |||||||
DEFERRED TAX | ' | |||||||
12. DEFERRED TAX | ||||||||
Deferred tax asset resulted from accrued maintenance cost on power generation systems that can be deducted for tax purposes in the future, and difference between tax and accounting basis of cost of fixed assets which was capitalized for tax purposes and expensed as part of cost of systems in accordance with US GAAP. Deferred tax liability arose from the difference between tax and accounting basis of net investment in sales-type leases. | ||||||||
As of December 31, 2013 and 2012, deferred tax liability consisted of the following: | ||||||||
2013 | 2012 | |||||||
Deferred tax asset — noncurrent (accrual of system maintenance cost) | $ | 70,551 | $ | 48,453 | ||||
Deferred tax asset — noncurrent (depreciation of fixed assets) | 31,308,695 | 22,933,886 | ||||||
Deferred tax liability — noncurrent (net investment in sales-type leases) | -43,263,314 | -29,547,957 | ||||||
Deferred tax liability, net of deferred tax asset – noncurrent | $ | -11,884,068 | $ | -6,565,618 | ||||
Deferred tax liability — current (net investment in sales-type leases) | $ | -1,442,317 | $ | -2,471,925 | ||||
INCOME_TAX
INCOME TAX | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
INCOME TAX | ' | |||||||
13. INCOME TAX | ||||||||
The Company’s Chinese subsidiaries are governed by the Income Tax Law of the PRC concerning privately-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate tax adjustments. Under the Chinese tax law, the tax treatment of finance and sales-type leases is similar to US GAAP. However, the local tax bureau continues to treat CREG sales-type leases as operating leases. Accordingly, the Company recorded deferred income taxes. | ||||||||
The Company’s subsidiaries generate all of their net income from their PRC operations. Shanghai TCH’s effective income tax rate for 2013 and 2012 was 25%. Xi’an TCH’s effective income tax rate in 2012 until August was 15% as a result of its high tech enterprise status that was approved by the taxing authority. The 15% rate expired in August 2012, and Xi’an TCH’s effective income tax rate became 25%. During 2013, Xi’an TCH was re-approved for high tech enterprise status and enjoyed 15% preferential income tax rate for 3 years effective January 1, 2013. Huahong, Zhonghong and Erdos TCH’s effective income tax rate for 2013 and 2012 was 25%. Shanghai TCH, Xi’an TCH, Huahong, Zhonghong and Erdos TCH file separate income tax returns. | ||||||||
There is no income tax for companies domiciled in the Cayman Islands. Accordingly, the Company’s consolidated financial statements do not present any income tax provisions related to Cayman Islands tax jurisdiction where Sifang Holding is domiciled. | ||||||||
The parent company, China Recycling Energy Corporation, is taxed in the U.S. and, as of December 31, 2013, had net operating loss (“NOL”) carry forwards for income taxes of $12.14 million, which may be available to reduce future years’ taxable income as NOLs can be carried forward up to 20 years from the year the loss is incurred. Our management believes the realization of benefits from these losses may be uncertain due to the Company’s limited operating history and continuing operating losses. Accordingly, a 100% deferred tax asset valuation allowance was provided. | ||||||||
Consolidated foreign pretax earnings approximated $24.58 and $9.1 million for the years ended December 31, 2013 and 2012, respectively. Pretax earnings of a foreign subsidiary are subject to U.S. taxation when repatriated. The Company provides income taxes on the undistributed earnings of non-U.S. subsidiaries except to the extent that such earnings are indefinitely invested outside the United States. As of December 31, 2013, $81.04 million of accumulated undistributed earnings of non-U.S. subsidiaries were indefinitely invested. At the existing U.S. federal income tax rate, additional taxes of approximately $16.50 million would have to be provided if such earnings were remitted currently. | ||||||||
The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for years ended December 31, 2013 and 2012, respectively: | ||||||||
2013 | 2012 | |||||||
U.S. statutory rates | 34 | % | 34 | % | ||||
Tax rate difference – current provision | -9.7 | % | -13.4 | % | ||||
Effective tax holiday | -9.5 | % | -8.3 | % | ||||
Non tax-deductible expense | 3 | % | 5.6 | % | ||||
Effect of tax rate change on deferred tax items | 9.7 | % | - | |||||
Valuation allowance on PRC NOL | - | % | 18.7 | % | ||||
Valuation allowance on US NOL | 2.8 | % | 10.9 | % | ||||
Tax per financial statements | 30.3 | % | 47.6 | % | ||||
The provision for income taxes expense for the years ended December 31, 2013 and 2012 consisted of the following: | ||||||||
2013 | 2012 | |||||||
Income tax expense - current | $ | 2,953,005 | $ | 1,921,842 | ||||
Income tax expense - deferred | 3,933,596 | 1,000,411 | ||||||
Total income tax expenses | $ | 6,886,601 | $ | 2,922,253 | ||||
LOANS_PAYABLE
LOANS PAYABLE | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
LOANS PAYABLE | ' | ||||
14. LOANS PAYABLE | |||||
Collective Capital Trust Plan | |||||
On December 3, 2009, the Company and Beijing International Trust Co., Ltd. (the “Beijing Trust”) formed a Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan (the “Capital Trust Plan”) pursuant to that certain Capital Trust Loan Agreement, dated November 19, 2009, by and between Erdos TCH and the Beijing Trust (the “Capital Trust Agreement”). All amounts raised under the Capital Trust Plan were loaned to Erdos TCH in connection with its WHPG projects Phase II and Phase III construction and operation. | |||||
Under the Capital Trust Agreement, the annual base interest rate was 9.94% for A1 preferred trust fund units with a term of two (2) years, 11% for A2 preferred trust fund units with a term of three (3) years, 12.05% for A3 preferred trust fund units and 8.35% for the category B secondary trust fund units, each with a term of four (4) years. Erdos TCH provided a lien on its equipment, assets and accounts receivable to guarantee the loans under the Capital Trust Agreement. Xi’an TCH and Mr. Guohua Ku, the CEO, the Chairman of the Company’s Board of Directors and a major shareholder, provided unconditional and irrevocable joint liability guarantees to the Beijing Trust for Erdos TCH’s performance under the Capital Trust Agreement. Erdos (the former minority shareholder and customer of Erdos TCH) provided a commitment letter on minimum power purchase from Erdos TCH. | |||||
The Capital Trust Plan raised $44.1 million (RMB 300,000,000) through a series of capital raises in 2009 and 2010, including (i) 13,750,000 B1 units ($2.0 million) purchased by the management of Erdos TCH; (ii) 1,600,000 ($235,600) A1 units and (iii) 46,250,000 B2 units ($7.4 million) purchased by Xi’an TCH, which was considered an investment by Xi’an TCH into Erdos TCH and, accordingly, was eliminated in the consolidated financial statements. The net loan payable under the Capital Trust Plan was $0 and $31.4 million (RMB 197,500,000) as of December 31, 2013 and 2012, respectively. On behalf of Erdos TCH, Xi’an TCH paid in full to Beijing Trust for the Trust Loan in December 2013 except the principal of RMB 46.25 million ($7.59 million) that was previously invested by Xi’an TCH to the Trust Loan plus accumulated interest of RMB 2,775,000 ($0.46 million), and RMB 7,650,000 ($1.25 million) that was previously invested by Mr. Guoha Ku to the Trust Loan plus accumulated interst of RMB 459,000 ($75,000), remained as outstanding liability of Erdos TCH. Beijing Trust transferred credit rights of the above outstanding balances to Xian TCH and Mr. Guoha Ku. In addition, Xi’an TCH assumed liability of Edros TCH to pay Mr. Ku. The outstanding liability of Erdous TCH to Xi’an TCH was eliminated in the consolidation. The related management incentive benefit and Clean Development Mechanism under the Kyoto Protoco were terminated accordingly without further execution as a result of repayment to Beijing Trust. | |||||
Entrusted Loan Payable | |||||
The newly established Fund (Beijing Hongyuan Recycling Energy Investment Center, LLP) with total fund size of RMB 460 million ($75.0 million) invests in Xi’an Zhonghong for Zhonghong’s three new coke dry quenching (CDQ) waste heat power generation projects. The Fund invested RMB 3 million ($0.5 million) as an equity investment and RMB 457 million ($74.5 million) as a debt investment; in return for such investments, the Fund will receive an interest payment from Zhonghong for the Fund’s debt investment. The RMB 457 million ($74.5 million) was released to Zhonghong through an entrusted bank, which is also the supervising bank for the use of the loan. The loan shall be deposited to a bank account at the Supervising Bank (the Industrial Bank Xi’an Branch) and will be jointly supervised by Zhonghong and the Fund Management Company. Project spending shall be verified by the Fund Management Company to confirm that it is in accordance with the project schedule before the funds are released. All the operating accounts of Zhonghong shall be opened with the branches of the Supervising Bank and the Supervising Bank has the right to monitor all bank accounts opened by Zhonghong. The entrusted bank will charge 0.1% of loan amount as service fee and will not take any lending risk. The loan was collateralized by the accounts receivable and the fixed assets of Shenqiu Phase I and II power generation systems, the accounts receivable and fixed assets of Zhonghong’s three CDQ waste heat power generation systems, and a 27,000,000 RMB capital contribution made by Xi’an TCH. Repayment of the loan (principal and interest) was also jointly and severally guaranteed by Xi’an TCH and the Company’s CEO. | |||||
Zhonghong shall also maintain certain capital level in its account with the Supervising Bank to make sure it has sufficient funds to make interest payments when they are due: | |||||
· | During the first three years from the first release of the loan, the balance in its account shall be no less than RMB 7.14 million ($1.19 million) on the 20th day of the 2nd month of each quarter and no less than RMB 14.28 million ($2.38 million) on the 14th day of the last month of each quarter; | ||||
· | During the fourth year from the first release of the loan, the balance in its account shall be no less than RMB 1.92 million ($0.32 million) on the 20th day of the 2nd month of each quarter and no less than RMB 3.85 million ($0.64 million) on the 14th day of the last month of each quarter; and | ||||
· | During the fifth year from the first release of the loan, the balance in its account shall be no less than RMB 96,300 ($16,050) on the 20th day of the 2nd month of each quarter and no less than RMB 192,500 ($32,080) on the 14th day of the last month of each quarter. | ||||
The term of this loan is for 60 months from July 31, 2013 to July 30, 2018. On August 6, 2016, Zhonghong shall repay principal in the amount of RMB 280 million ($45.54 million); on August 6, 2017, it shall repay principal of RMB 100 million ($16.27 million) and on July 30, 2018, it shall repay the remainder of RMB 77 million ($12.52 million). The interest rate is 12.5% per year. Zhonghong shall maintain a minimal funding level and capital level in its designated account with the Supervising Bank to make sure it has sufficient funds to make principal payments when they are due. As of December 31, 2013, the entrusted loan payable had an outstanding balance of $74.96 million, of which, $12.3 million was from the investment of Xi’an TCH; accordingly, the Company netted off the loan payable of $12.3 million with the long-term investment to the Fund made by Xi’an TCH. For the year ended December 31, 2013, the Company recorded interest expense of $1,126,396 on this loan. | |||||
Bank Loans - Industrial Bank | |||||
Xi’an TCH entered into an agreement with Industrial Bank Co., Ltd., Xi’an Branch (the “Industrial Bank”) for a loan designed for energy saving and emission reduction projects, whereby the Industrial Bank agreed to loan $4.88 million (RMB 30,000,000) to Xi’an TCH for three (3) years from April 6, 2010 to April 5, 2013. The loan had a floating interest rate that reset at the beginning of each quarter at 110% of the national base interest rate for the same term and same level loan (then 6.77%). The loan agreement contained standard representations, warranties and covenants, and was guaranteed by Xi’an TCH, Shaanxi Shengwei Construction Material Group and Mr. Guohua Ku. The principal was paid in full at maturity. | |||||
On March 31, 2011, Xi’an TCH entered into another loan agreement with the Industrial Bank for energy saving and emission reduction projects, whereby the Industrial Bank agreed to loan $4.88 million (RMB 30,000,000) to Xi’an TCH for three (3) years to March 30, 2014. The loan agreement has a floating interest rate that resets at the beginning of each quarter at 115% of the national base interest rate for the same term and same level loan (then 7.07%). Under the loan, Xi’an TCH is required to make quarterly interest payments and, beginning six (6) months after the date of the release of the funds, to make minimum quarterly principal payments of $488,000 (RMB 3,000,000). The loan agreement contains standard representations, warranties and covenants, and the loan is guaranteed by Xi’an TCH, Mr. Guohua Ku and Ms. Chaoying Zhang. As of December 31, 2013, this loan had an outstanding balance of $0.98 million, which is to be repaid within one (1) year. | |||||
The loan was originally pledged with the system and revenue of the ZhongBao project. In June 2011, the ZhongBao project systems were sold to and leased back from Cinda Financial Leasing Co., Ltd. (“Cinda Financial”). The Company engaged a third party guarantee company as the guarantor for this loan, which was approved by the Industrial Bank in July 1, 2011. The loan included the following covenants: (i) maintain the current assets and net assets not less than $79 million (RMB 500 million); (ii) assets to liability ratio not less than 80%; and (iii) the current ratio not less than 1. In the first quarter of 2011, the Company received a waiver letter from the Lender waiving all covenants. | |||||
On November 8, 2011, Xi’an TCH entered the third loan agreement with the same Industrial Bank for energy saving and emission reduction projects, whereby the Lender agreed to loan $21.04 million (RMB 130,000,000) to Xi’an TCH for four years to November 28, 2015. The loan agreement has a floating interest rate that resets at the beginning of each quarter at 115% of the national base interest rate for the same term and same level loan (then 7.36%). Under the loan, Xi’an TCH is required to make quarterly interest payments and, beginning nine months after the date of the release of the funds, to make minimum quarterly principal payments of $1,618,463 (RMB 10,000,000). For the first nine months, the loan was in a grace period and there was no repayment requirement. The loan is guaranteed by accounts receivable of Xi’an TCH, Pucheng and Shenqiu BMPG systems and Mr. Guohua Ku. As of December 31, 2013, this loan had outstanding balance of $11.48 million, of which, $6.56 million was to be repaid within one year and was classified as current liability, and $4.92 million will be repaid after one year and was classified as noncurrent liability. | |||||
On October 9, 2013, Xi’an TCH entered the fourth loan agreement with the same Industrial Bank for energy saving and emission reduction projects, whereby the Lender agreed to loan $16.40 million (RMB 100,000,000) to Xi’an TCH for four years to October 8, 2017. The loan agreement has a floating interest rate that resets at the beginning of each month at 120% of the national base interest rate for the same term and same level loan. Under the loan, Xi’an TCH is required to make quarterly interest payments and, beginning six months after the date of the release of the funds, to make minimum quarterly principal payments of $615,067 (RMB 3,750,000) for 2014, $1,025,111 (RMB 6,250,000) for 2015, and $1,230,133 (RMB 7,500,000) for 2016 and 2017. For the first six months, the loan was in a grace period and there was no repayment requirement. The loan is guaranteed by Erdos accounts receivable and projects systems and Mr. Guohua Ku. As of December 31, 2013, this loan had outstanding balance of $16.4 million, of which, $2.46 million was to be repaid within one year and was classified as current liability, and $13.94 million will be repaid after one year and was classified as noncurrent liability. | |||||
Bank Loan – Bank of Xi’an | |||||
During the first quarter of 2012, Xi’an TCH entered into an agreement with Bank of Xi’an, whereby Bank of Xi’an agreed to loan $4.88 million (RMB 30,000,000) to Xi’an TCH for one (1) year with maturity on March 1, 2013. The monthly interest rate of the loan was 0.60133%. Under the terms of the loan, Xi’an TCH was required to make monthly interest payments and the principal was to be repaid at maturity. The loan was guaranteed by a third party guarantee company and Mr. Guohua Ku. The Company paid the third party guarantee company $119,322 (RMB 750,000) as a re-guarantee service fee. This loan was repaid at maturity. | |||||
On March 28, 2013, Xi’an TCH entered into another agreement with Bank of Xi’an, whereby Bank of Xi’an agreed to loan $4.88 million (RMB 30,000,000) to Xi’an TCH for one (1) year with maturity on March 27, 2014. The monthly interest rate of the loan is 0.575%. Under the terms of the loan, Xi’an TCH is required to make monthly interest payments and the principal is to be repaid at maturity. The loan is guaranteed by a third party guarantee company and Mr. Guohua Ku. The Company paid a third party $115,315 (RMB 712,500) as a re-guarantee service fee. | |||||
As of December 31, 2013, the future minimum repayment of all the bank loans and entrusted loan to be made by years was as follows: | |||||
2014 | $ | 14,925,618 | |||
2015 | 9,020,978 | ||||
2016 | 50,845,511 | ||||
2017 | 21,322,312 | ||||
2018 | 328,036 | ||||
Total | $ | 96,442,455 | |||
Financing Agreement- - Sale Lease-Back Transaction (Long Term Payable) | |||||
On June 28, 2011, Xi’an TCH entered into a Financing Agreement (the “Cinda Agreement”) with Cinda Financial, an affiliate of China Cinda (HK) Asset Management Co., Ltd, a company organized under the laws of the Hong Kong Special Administrative Region of China (“Cinda HK”). | |||||
Under the Cinda Agreement, Xi’an TCH transferred its ownership of (i) a set of 7MW steam turbine waste heat power generation systems and (ii) four furnaces and ancillary apparatus ((i) and (ii) collectively, the “Assets”) to Cinda Financial for $6.72 million (RMB 42.50 million), and Cinda Financial leased the Assets to Xi’an TCH for five (5) years for $8.15 million (RMB 51.54 million) based on the transfer cost and benchmark interest rate for five (5) year loans by People’s Bank of China (“PBOC”) (then 6.65%) plus 15% of that rate (7.6475%). The interest rate will increase if the five-year benchmark interest rate of PBOC increases but will remain the same if the benchmark rate decreases in the future. Xi’an TCH shall make pro rata quarterly payments to Cinda Financial for the leasing fees. Upon the completion of the lease term and full payment of all leasing fees and other fees, Xi’an TCH can pay $676 (RMB 4,250) to acquire the Assets from Cinda Financial. The quarterly minimum leasing payment to Cinda Financial is $412,855 (RMB 2,594,998). | |||||
In addition to the leasing fees, Xi’an TCH prepaid a one-time non-refundable leasing service charge of $405,696 (RMB 2,550,000) and a refundable security deposit of $338,079 (RMB 2,125,000) to Cinda Financial. The prepaid leasing service fee is to be: amortized over five (5) years. For the years ended December 31, 2013 and 2012, $82,070 (RMB 510,000) and $80,792 (RMB 510,000) was amortized. The unamortized portion was recorded as prepaid loan fees of $83,649 and $125,474 into current and non-current portions, respectively, as of December 31, 2013. | |||||
In accordance with ASC 840-10-25-4, since CREG retains substantially all of the benefits and risks relating to the property, this transaction was a financing and was recorded as such. The proceeds of this financing were not received prior to September 30, 2011; therefore, this transaction was recorded in the third quarter of 2011. As of December 31, 2013, the Company made repayments of $4,255,949 to Cinda Financial. | |||||
As of December 31, 2013, the future minimum payment to be made by years was as follows: | |||||
2014 | $ | 1,702,503 | |||
2015 | 1,702,503 | ||||
2016 | 851,252 | ||||
Total | 4,256,258 | ||||
Unamortized interest | -429,785 | ||||
Total long term payable | 3,826,473 | ||||
Current portion | 1,441,051 | ||||
Noncurrent portion | $ | 2,385,422 | |||
NOTE_PAYABLE
NOTE PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
Convertible Notes Payable And Revolving Financing Agreement [Abstract] | ' |
NOTES PAYABLE | ' |
15. NOTE PAYABLE | |
Loan Agreement with Cinda HK and its Affiliate | |
On August 18, 2010, the Company and its wholly-owned subsidiaries Sifang Holdings, Shanghai TCH and Xi’an TCH entered into a Notes Purchase Agreement (the “Cinda HK Note Agreement”) with Cinda HK. Under the terms of the Cinda HK Note Agreement, the Company issued Cinda HK two tranches of convertible notes (the “Cinda HK Notes”), each having a principal amount equal to the US Dollar equivalent of RMB 50 million. | |
Under the Cinda HK Note Agreement, the Cinda HK Notes shall be issued before August 18, 2011. The Cinda HK Notes mature three (3) years from the date of the issuance of the first tranche. Each Cinda HK Note bears interest at a rate equal to that of PBOC base interest rate for the relevant interest period (the period commencing on and including January 1 of each year and ending on and including December 31 of such year) plus 2%. If Cinda HK does not convert or fully convert the Cinda HK Notes to shares prior to maturity, the Company will pay the difference between the interest rate described above and 18% on the outstanding amount. As collateral for the notes, Mr. Ku, CEO of the Company entered into a Share Pledge Agreement with Cinda HK dated as of August 18, 2010, to pledge each 4,500,000 shares of the Company’s common stock held by him to secure the first Cinda HK Note and the second note before its issuance, respectively. | |
Each Cinda HK Note had a conversion price at the lower of (i) $2.46 per share or (ii) an amount equal to the Company’s EPS based upon the consolidated earnings of the Company for 2010 on a weighted average fully diluted basis, multiplied by seven. The Cinda HK Notes had a contingent BCF which will be recorded when the contingency is resolved. | |
Also on August 18, 2010, Xi’an TCH and China Jingu International Trust Co. Ltd. (“Jingu”), an affiliate of Cinda entered into a Capital Trust Loan Agreement (the “Trust Loan Agreement”), whereby Jingu would raise 100 million RMB ($16 million) under a Jingu CREG Recycling Economy No. 1 Collective Fund Trust Plan (the “Trust Plan”) and lend such amount under the Trust Plan to Xi’an TCH (the “Jingu Loans”). If the Jingu Loans under the Trust Loan Agreement did not occur, then the principal amount of the Cinda HK Notes to be issued in each tranche would be the US dollar equivalent of RMB 100 million. In connection with the Trust Loan Agreement, the Company also entered into an Exchange Rights Agreement pursuant to which the Jingu Loans could be exchanged (on the same terms as the Cinda HK Notes can be converted) for shares of the Company’s common stock which can in turn be registered under the Registration Rights Agreement. All proceeds from the Cinda HK Notes and the Jingu Loans were to be used to complete the Phases IV and V of the Erdos TCH Energy Saving Development Co., Ltd. (“Erdos TCH”) project. | |
The term of the Jingu Loans was for three (3) years from the date of the first draw. The interest rate for the Jingu Loans was the PBOC three (3) year loan base interest rate plus two percent (2%). If the Jingu Loans were not exchanged for shares of the common stock of the Company as described below prior to maturity, Xi’an TCH agreed to pay the difference between the interest rate described above and 18% on the outstanding amount. Under the Trust Loan Agreement and separate agreements entered into by Jingu, Erdos TCH, Shanghai TCH, Xi’an TCH and Mr. Guohua Ku on August 18, 2010, (a) Erdos TCH pledged the accounts receivable, equipment and assets of its Phases IV and V projects to Jingu as a guarantee to the Jingu Loans, (b) Xi’an TCH pledged its 80% equity in Erdos TCH to Jingu as a guarantee to the Jingu Loans, (c) Shanghai TCH provided a joint liability guarantee to Jingu for the Jingu Loans, and (d) Mr. Guohua Ku provided his personal joint liability as security for the Jingu Loans. | |
On December 30, 2010, the Company received $7,533,391 (RMB 50,000,000) from the first tranche of the Jingu Loans. On January 30, 2011, the Company received another $7,533,391 (RMB 50,000,000) from the first tranche convertible Note. Under ASC 815 – Derivatives and Hedging, the FV of the conversion option was a derivative that was bifurcated and treated as liability at the date of inception. The conversion feature was accounted for at December 31, 2011 and 2010 using the conversion price of $2.46. The conversion feature was akin to a call option, therefore, the Black-Scholes option pricing model was used by using the maximum conversion price of $2.46 as the strike price. Since the conversion option was an embedded derivative and was bifurcated from the host contact, BCF analysis was not required. The FV of the conversion feature was recorded as a liability and was marked to market until the conversion rate was set. As the loan had a reset clause in the event the Company issued shares below the conversion price, it was to be treated as a liability as long as the loan was outstanding. The unamortized discount due to conversion feature continued to be amortized over the term of the loan. | |
On December 9, 2011, the Company, Cinda and Mr. Guohua Ku, the Chairman, CEO and a major shareholder of the Company entered into a Supplemental Agreement (the “Supplemental Agreement”) to the Notes Purchase Agreement which was dated August 18, 2010. Pursuant to the terms of the Supplemental Agreement, the Company and Cinda terminated the transaction of the second tranche of RMB 50 million of the convertible note under the Note Agreement. The Company and Cinda also agreed that the Company redeem the outstanding convertible note at the U.S. Dollar amount equivalent to RMB 25 million each on December 30, 2011 and November 30, 2012, respectively, plus accrued interest at 18% (the “Redemption Interest Rate”) up to the applicable Redemption Date, minus any interest already accrued and paid (together with the Redemption Principal Amount, the “Redemption Price”). There was an additional 5% interest rate on any default in payment of the Redemption Price and due on demand. The interest on the Redemption Principal Amount due on November 30, 2012 (the “Second Redemption Principal Amount”) accrued at 18%. On December 9, 2011, Mr. Ku executed a Certificate for additional collateral to pledge an additional 1.5 million shares of common stock of the Company that he owns as collateral to Cinda to secure the unpaid note. | |
Xi’an TCH redeemed $3.97 million (RMB 25 million) and interest of $1.13 million (RMB 7.14 million) for the Cinda HK Notes on December 30, 2011 per the Supplemental Agreement described above. Xi’an TCH redeemed 1st 50% of remaining RMB 25 million on June 20, 2012, and the other 50% of remaining RMB 25 million was due on November 30, 2012; however, upon request from Cinda, the November 30, 2012 date was extended and repaid in full in August 2013. | |
During 2012, the Company amortized $2,140,050 from the unamortized discount due to the conversion feature of the remaining RMB 25 million. As of December 31, 2012, there was no derivative liability as the Company redeemed half of the outstanding convertible notes at December 30, 2011 and redeemed the remaining half at a future date, plus accrued interest at 18%. During the year ended December 31, 2013, the Company recorded interest expense of $487,080 on the $3.76 million (the remaining RMB 25 million) of Cinda HK Note at 18%. | |
In addition, on December 9, 2011, Xi’an TCH and Jingu, an affiliate of Cinda also entered into a Supplemental Agreement (the “Jingu Agreement”) to the Capital Trust Loan Agreement. Pursuant to the terms of the Jingu Agreement, Xi’an TCH repaid $7.94 million (RMB 50 million) and interest of $1.00 million (RMB 6.45 million) to Jingu on December 16, 2011. | |
As of December 31, 2013, the Cinda HK Note including interest was repaid in full. | |
STOCKBASED_COMPENSATION_PLAN
STOCK-BASED COMPENSATION PLAN | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
STOCK-BASED COMPENSATION PLAN | ' | ||||||||||
16. STOCK-BASED COMPENSATION PLAN | |||||||||||
Options to Employees | |||||||||||
On August 4, 2008, the Company granted certain employees stock options under the Company’s 2007 Non-Statutory Stock Option Plan, which was later amended and restated in 2010, to acquire 3,000,000 shares of the Company’s common stock, par value $0.001, at $0.80 per share. The options vested over three years and have a life of five years. The Company’s 2007 Non-Statutory Stock Option Plan has expired. | |||||||||||
Based on the FV method under SFAS No. 123 (Revised) “Share Based Payment” (“SFAS 123(R)”), codified in FASB ASC Topic 718, the FV of each stock option granted is estimated on the date of the grant using the Black-Scholes option pricing model (“BSOPM”). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk free interest rate is based upon market yields for United States Treasury debt securities at a maturity near the term remaining on the option. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the historical volatility of the Company’s stock price. The expected life of an option grant is based on management’s estimate as no options have been exercised in the Plan to date. The FV of each option granted to employees is recognized as compensation expense over the vesting period of each stock option award. The FV of the options was calculated using the following assumptions, estimated life of five years, volatility of 100%, risk free interest rate of 2.76%, and dividend yield of 0%. No estimate of forfeitures was made as the Company has a short history of granting options. The options were accounted for as a modification of the options cancelled on June 25, 2008. The grant date FV of options was $5.04 million. | |||||||||||
On November 9 and 11, 2009, the Company and three option holders agreed to cancel 87,000 vested but unexercised shares and forfeit unvested options for 203,000 unvested shares. On November 11, 2009, the Company granted options to two other employees for 290,000 shares of the Company’s common stock at $2.35 per share. The options vested over three years and have a life of five years. The FV of the options was calculated using the following assumptions, estimated life of five years, volatility of 100%, risk free interest rate of 3.84%, and dividend yield of 0%. The grant date FV of options was $518,513. | |||||||||||
In July 2011, the Compensation Committee approved and provided the employees cashless exercise elections to the stock options granted by the Board of Directors of the Company (the “Board”) on August 4, 2008. On August 20, 2013, the Board further approved and provided the Employee Recipients (stock options granted to purchase shares of common stock of the Company in its resolutions on November 12, 2009 and August 12, 2010) cashless exercise elections. The holder of the stock options may elect to receive shares equal to the value (as determined below) of his/her option (or the portion thereof being canceled) according to the following formula: | |||||||||||
X =160; Y (A-C) | |||||||||||
A | |||||||||||
Where | X =font> | the number of shares of Common Stock to be issued to the holder | |||||||||
Y =font> | the number of shares of stock option or, if only a portion of the stock option is being exercised, the portion of the option being canceled | ||||||||||
A =font> | the Fair Market Value of one share of Common Stock as defined below | ||||||||||
C =font> | Stock Option Exercise Price | ||||||||||
For purposes of the above calculation, the fair market value per share shall be the closing price quoted on the NASDAQ Global Market for the five (5) trading days prior to the date on which a written notice of such holder’s election to exercise his/her option has been received by the Company. During 2013, the Employee Recipients exercised 2,650,000 shares of stock options (granted on August 4, 2008) into 1,887,411 shares of the Company’s common stock. | |||||||||||
On August 13, 2010, the Company granted 2,200,000 options to acquire the Company’s common stock at $3.05 per share to 36 managerial and non-managerial employees as new equity awards pursuant to the Corporation’s Amended and Restated 2007 plan. According to the vesting terms, the options granted were divided into three tranches, (i) 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets its minimum revenue and earnings goals in the Company’s guidance for 2010 as delivered in its earnings releases and/or conference calls in the first quarter of 2010, such vesting to occur immediately upon completion of the annual audit confirming the financial results for 2010; and (ii) an additional 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets certain financial goals of 2011 which will be set out and decided by the Compensation Committee, such vesting to occur immediately upon Compensation Committee’s determination that the Company has met such goals for 2011; and (iii) the remaining 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets certain financial goals of 2012 which is set out and decided by the Compensation Committee, such vesting is to occur immediately upon Compensation Committee’s determination that the Company has met such goals for 2012. The options may only be exercised to the extent that such options have become vested and exercisable. | |||||||||||
As of December 31, 2012 and 2011, the Company did not meet the financial goals of 2012 and 2011; accordingly, the second and third tranche (two thirds of the total number of 2,200,000 options) was forfeited. | |||||||||||
The options have a life of five years. The FV of the options was calculated using the following assumptions; estimated life of five years, volatility of 92%, risk free interest rate of 3.54%, and dividend yield of 0%. Each tranche of the options is deemed to be independent of the others. Therefore, the FV of the first tranche of options was expensed during 2011; the second and third tranche of options were forfeited due to the non-achievement of established financial benchmarks. | |||||||||||
The following table summarizes activity for employees in the Company’s Plan: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 4,466,667 | $ | 1.64 | 2.34 | |||||||
Exercisable at January 1, 2012 | 3,675,333 | 1.35 | 2.07 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | 733,334 | - | - | ||||||||
Outstanding at December 31, 2012 | 3,733,333 | 1.36 | 1.09 | ||||||||
Exercisable at December 31, 2012 | 3,733,333 | 1.36 | 1.09 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 2,650,000 | 0.8 | - | ||||||||
Forfeited | 60,000 | - | - | ||||||||
Outstanding at December 31, 2013 | 1,023,333 | 2.85 | 1.4 | ||||||||
Exercisable at December 31, 2013 | 1,023,333 | $ | 2.85 | 1.4 | |||||||
2,650,000 (cashless exercise) and 0 shares of options were exercised during the years ended December 31, 2013 and 2012. | |||||||||||
The Company recorded $0 and $89,252 compensation expense for stock options to employees during the years ended December 31, 2013 and 2012, respectively. | |||||||||||
Options that were vested and exercisable at December 31, 2013 were 1,023,333 shares, weighted average exercise price of $2.85, no intrinsic value, and weighted-average remaining contractual term of 1.40 years. Options that were expected to vest at December 31, 2013 were 0 shares. | |||||||||||
Options to Independent Directors | |||||||||||
On October 30, 2009, the Company granted stock options for 130,000 shares of the Company’s common stock, at $1.85 per share to three independent directors. The options vested and became exercisable on the six-month anniversary of the grant date with a life of five years. The FV of the options was calculated using the following assumptions: estimated life of five years, volatility of 100%, risk free interest rate of 3.54%, and dividend yield of 0%. The grant date FV of options was $183,000. | |||||||||||
On January 20, 2010, the Company granted stock options for 40,000 shares of the Company’s common stock, at $4.68 per share to another independent director. The options vested and became exercisable on the six-month anniversary of the grant date with a life of five years. The FV of the options was calculated using the following assumptions: estimated life of five years, volatility of 100%, risk free interest rate of 3.54%, and dividend yield of 0%. The grant date FV of options was $142,000. | |||||||||||
On October 7, 2010, our Board approved the increase in its size from seven to nine members as a result of entering the Jingu Loans and Cinda HK Notes on August 18, 2010. At the same time, our Board appointed Mr. Yilin Ma and Mr. Chungui Shi as new members of the Board to fill the director vacancies until their successors have been duly elected and qualified. In connection with their appointment, the Board authorized the Company to provide Mr. Shi with (i) compensation of $2,000 per month and (ii) subject to shareholder approval at the upcoming 2014 annual meeting of shareholders, the grant of an option to purchase 40,000 shares of the Company’s common stock, at an exercise price equal to the closing price per share of the Company’s common stock on October 7, 2010 (the “Director Stock Options”). The Director Stock Options vested and will become exercisable upon shareholder approval; the options have a life of five years from the original grant date. The FV of these options was calculated using the following assumptions: estimated life of five years, volatility of 87%, risk free interest rate of 3.54%, and dividend yield of 0%. The grant date FV of the Director Stock Options was $83,000. | |||||||||||
The Director Stock Options did not include a cashless exercise right clause. Former Director Sean Shao’s stock options were fully vested and exercisable before his decision of not standing for re-election at the Company’s annual shareholders meeting in June 2011; Former Director Robert Chanson’s stock options were fully vested and exercisable before his decision of not standing for re-election at the Company’s annual shareholders meeting in May 2012. On August 20, 2013, the Board approved and provided the Director Recipients cashless exercise elections to the Director Stock Options. The holder of the stock options may elect to receive shares equal to the value (as determined below) of his/her option (or the portion thereof being canceled) according to the following formula: | |||||||||||
X =160; Y (A-C) | |||||||||||
A | |||||||||||
Where | X =font> | the number of shares of common stock to be issued to the holder | |||||||||
Y =font> | the number of shares of stock option or, if only a portion of the stock option is being exercised, the portion of the option being canceled | ||||||||||
A =font> | the Fair Market Value of one share of common stock as defined below | ||||||||||
C =font> | Stock Option Exercise Price | ||||||||||
For purposes of the above calculation, the fair market value per share shall be the closing price quoted on the NASDAQ Global Market for the five (5) trading days prior to the date on which a written notice of such holder’s election to exercise his/her option has been received by the Company. During 2013, one of the Company’s directors exercised 10,000 shares of stock options into 5,261 shares of the Company’s common stock. | |||||||||||
The following table summarizes option activity with respect to the independent directors: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 210,000 | $ | 2.6 | 3.05 | |||||||
Exercisable at January 1, 2012 | 210,000 | 2.6 | 3.05 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2012 | 210,000 | 2.6 | 2.05 | ||||||||
Exercisable at December 31, 2012 | 210,000 | 2.6 | 2.05 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 10,000 | 1.85 | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2013 | 200,000 | 2.64 | 1.05 | ||||||||
Exercisable at December 31, 2013 | 200,000 | $ | 2.64 | 1.05 | |||||||
10,000 (cashless exercise) and 0 shares of options were exercised during the years ended December 31, 2013 and 2012. | |||||||||||
Options that were vested and exercisable at December 31, 2013 were 200,000 shares, weighted average exercise price of $2.64, no intrinsic value, and weighted-average remaining contractual term of 1.05 years. | |||||||||||
Warrants to Investor Relation Firms | |||||||||||
On October 1, 2009, the Company granted warrants to acquire 200,000 shares of the Company’s common stock, at $1.50 per share to certain investor relations firms. The warrants are exercisable, in whole or in part, at any time from July 1, 2010 (the “Vesting Date”) to October 1, 2014 (the “Expiration Date”). The Company accounted for warrants issued to investor relations firms based on ASC 505-50 at each balance sheet and expense recorded based on the period elapsed at each balance sheet date, which is the date at which the counterparty’s performance is deemed to be completed for the period. The FV of each warrant granted is estimated on the date of the grant using the BSOPM under ASC 505-30-11 and is recognized as compensation expense over the service term of the investor relations agreement as it is a better matching of cost with services received. Under that Agreement, the issuance of the warrants was irrevocable and the Company agreed to take no action to cause the warrants to be void or revoked or their issuance to be otherwise terminated. The warrants were classified as equity instruments and were exercisable into a fixed number of common shares. There was no commitment or requirement to change the quantity or terms based on conditions to the counterparty’s performance or market conditions. The FV of the warrants was calculated using the following assumptions: estimated life of five years, volatility of 100%, risk free interest rate of 3.54%, and dividend yield of 0%. On August 6, 2013, the 50,000 warrants were exercised into 26,489 shares of the Company’s common stock through cashless exercise. | |||||||||||
The following table summarizes activity for the warrants to certain investor relations IR firms: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 50,000 | $ | 1.5 | 2.75 | |||||||
Exercisable at January 1, 2012 | 50,000 | 1.5 | 2.75 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2012 | 50,000 | 1.5 | 1.75 | ||||||||
Exercisable at December 31, 2012 | 50,000 | 1.5 | 1.75 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 50,000 | 1.5 | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2013 | - | - | - | ||||||||
Exercisable at December 31, 2013 | - | $ | - | - | |||||||
50,000 (cashless exercise) and 0 shares of warrants were exercised during the years ended December 31, 2013 and 2012. | |||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | ' |
SHAREHOLDERS' EQUITY | ' |
17. SHAREHOLDERS’ EQUITY | |
Shares Issued for Asset Transfer | |
On September 5, 2013, Xi’an TCH entered into the Pucheng Transfer Agreement described in Note 1, which provided for the sale to Xi’an TCH of a set of 12 MW biomass power generation systems with completion of system transformation from Pucheng. As consideration for the biomass power generation systems, Xi’an TCH agreed to pay Pucheng RMB 100 million ($16.48 million) in the form of 8,766,547 shares of common stock of the Company at the price of $1.87 per share. These shares were issued to Pucheng on October 29, 2013. | |
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Statutory Reserves [Abstract] | ' | |||||||||||||
STATUTORY RESERVES | ' | |||||||||||||
18. STATUTORY RESERVES | ||||||||||||||
Pursuant to the corporate law of the PRC effective January 1, 2006, the Company is only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. | ||||||||||||||
Surplus Reserve Fund | ||||||||||||||
The Company’s Chinese subsidiaries are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the Company’s registered capital. | ||||||||||||||
The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. | ||||||||||||||
The maximum statutory reserve amount has not been reached for any subsidiary. The table below discloses the statutory reserve amount in the currency type registered for each Chinese subsidiary as of December 31, 2013. | ||||||||||||||
Name of Chinese | Registered | Maximum Statutory | Statutory reserve at December | |||||||||||
Subsidiaries | Capital | Reserve Amount | 31, 2013 | |||||||||||
Shanghai TCH | $ | 29,800,000 | $ | 14,900,000 | ¥ | 6,564,303 | ($959,387) | |||||||
Xi’an TCH | ¥ | 202,000,000 | ¥ | 101,000,000 | ¥ | 45,990,396 | ($6,916,300) | |||||||
Erdos TCH | ¥ | 120,000,000 | ¥ | 60,000,000 | ¥ | 12,052,401 | ($1,797,067) | |||||||
Xi’an Zhonghong | ¥ | 30,000,000 | ¥ | 15,000,000 | Did not accrue yet due to accumulated deficit | |||||||||
Shaanxi Huahong | ¥ | 2,500,300 | ¥ | 1,250,150 | Did not accrue yet due to accumulated deficit | |||||||||
Common Welfare Fund | ||||||||||||||
The common welfare fund is a voluntary fund to which the Company can transfer 5% to 10% of its net income. This fund can only be utilized on capital items for the collective benefit of the Company’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. The Company does not participate in this fund. | ||||||||||||||
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Contingencies [Abstract] | ' |
CONTINGENCIES | ' |
19. CONTINGENCIES | |
The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |
The Company’s sales, purchases and expense transactions are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to make the remittance. | |
The Company sells electricity to its customers and receives commercial notes (bank acceptance) from them in lieu of payments for accounts receivable. The Company discounts the commercial notes with the bank or endorses the commercial notes to vendors for payment of their own obligations or to get cash from third parties. Most of the commercial notes have a maturity of less than six months. As of December 31, 2013 and 2012, Xi’an TCH had outstanding notes receivable of RMB 4,000,000 ($656,071) and $0, respectively. | |
Xi’an TCH was granted a subsidy by Xi’an City Science and Technology Bureau and Xi’an City Finance Bureau under Xi’an Hi-Tech Industry Development Special Project Fund. The special project fund for Xi’an TCH is for a three years period, from January 1, 2012 to December 31, 2014, with two criteria established to measure the performance of Xi’an TCH: (i) total accumulated sales in three years should be RMB 320 million ($50.8 million), and (ii) total accumulated taxable income should be RMB 56.9 million ($ 9.0 million). In 2012, Xi’an TCH’s total sales were RMB 129 million ($20.5 million) and total taxable income was RMB 59.8 million ($9.5 million) under PRC GAAP. Xian TCH achieved total accumulated taxable income target of RMB 56.9 million ($9.0 million) in 2012 under PRC GAAP. For the year ended December 31, 2013, Xi’an TCH’s total sales were RMB 154 million ($24.92 million) under PRC GAAP. The probability of achieving total accumulated sales of RMB 320 million ($50.8 million) for the three years period was evaluated by the management. Based on management’s evaluation, as of December 31, 2013, Xi’an TCH had 15 projects in operation with minimum monthly lease payments of RMB 17.79 million ($2.86 million) under PRC GAAP; as a result, management believes that achieving total accumulated sales target of RMB 320 million ($50.8 million) over a period of three years is probable and therefore recognized the subsidy income in 2012. Total subsidy income for 3 years was $499,000 (RMB 3,150,000) and Xi’an TCH paid third party consulting company fees of $149,700 (RMB 945,000), for services relating to project evaluation and audit, application document preparation, assembling and compiling, the net subsidy received was $349,300 (RMB 2,205,000), which was recorded as part of other income in 2012 as a result of the management’s best estimates of high probability of meeting the two criteria. | |
COMMITMENTS
COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
COMMITMENTS | ' | ||||
20. COMMITMENTS | |||||
Lease Commitment | |||||
On March 5, 2010, Xi’an TCH leased its office that expired on March 4, 2014, Xi’an TCH renewed the lease for another 3 years with a 8% increase on rent. Currently, the monthly rental payment is $18,000 (before March 4, 2014). In March 2013 Xi’an TCH leased an office in Jinan for three years until March 22, 2016, with a monthly payment of $3,800. The rent will be increased by 5% each year. For the years ended December 31, 2013 and 2012, the rental expense of Xi’an TCH was $275,500 and $213,000, respectively. | |||||
In November 2012, Sifang Holding renewed its office in Beijing for monthly rent of $1,900 expired on December 18, 2013. Sifang was required to pay in advance for the first six months rent for $11,450 at the beginning of the lease. Sifang Holding terminated the lease at expiration. | |||||
Future minimum annual rental payments required under operating leases as of December 31, 2013 were as below (by year): | |||||
2014 | $ | 278,000 | |||
2015 | 281,000 | ||||
2016 | 246,000 | ||||
2017 | 39,000 | ||||
Total | $ | 844,000 | |||
Refer to Note 1 for additional details related to lease commitments with Shanxi Datong, Chengli, and Tianyu (and its subsidiaries Xuzhou Tian’an and Xuzhou Huayu) and Note 6 for commitment on construction in progress. | |||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
21. SUBSEQUENT EVENTS | |
On February 17, 2014, Xi’an TCH entered into two Trust Loan Agreements with Zhongrong International Trust Co., Ltd. (the “ZRIT”), a trust company incorporated in Helongjiang Province, China. | |
The first Trust Loan Agreement (the “Zhongtai Loan Agreement”) is for Xi’an TCH to borrow RMB 150 million ($24.5 million) for the Coke Dry Quenching (“CDQ”) system and the CDQ Waste Heat Power Generation Project with Xuzhou Zhongtai Energy Technology Co., Ltd. (the “Zhongtai Project”). ZRIT will set up a Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 1 (the “Trust Plan No. 1”) to raise money and loan the proceeds to Xi’an TCH for the Zhongtai Project. (the “Zhongtai Loan”). | |
The Zhongtai Loan has a term of forty-eight (48) months and bears an annual interest rate of 12% for the first twenty-four (24) months. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four (24) months and Xi’an TCH has the right to prepay the Zhongtai Loan before maturity if Xi’an TCH does not agree to such adjustment of interest rate. ZRIT has the right to request repayment of all principal and interest of the Zhongtai Loan on the twenty-four (24) month anniversary date of the establishment of Trust Plan No. 1. | |
The Zhongtai Loan is secured by the pledge of CDQ equipment and power generation system of the Zhongtai Project, by personal guarantee of Mr. Ku Guohua, the Chairman and CEO of the Company, and by a corporate guarantee of Xuzhou Zhongtai Energy Technology Co., Ltd. and its affiliated companies. | |
The second Trust Loan Agreement (the “Rongfeng Loan Agreement”) is for Xi’an TCH to borrow RMB 135 million ($22.1 million) for the CDQ system and the CDQ WHPG Project with Tangshan Rongfeng Iron & Steel Co., Ltd. (the “Rongfeng Project”). ZRIT will set up a Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 2 (the “Trust Plan No. 2”) to raise money and loan the proceeds to Xi’an TCH for the Rongfeng Project. | |
The Rongfeng Loan has a term of forty-eight (48) months and bears an annual interest rate of 12% for the first twenty-four (24) months. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four (24) months and Xi’an TCH has the right to prepay the Rongfeng Loan if Xi’an TCH does not agree to such adjustment of the interest rate. ZRIT has the right to request repayment of all principal and interest of the Rongfeng Loan on the twenty-four (24) month anniversary date of the establishment of Trust Plan No. 2. | |
The Rongfeng Loan is secured by the pledge of CDQ equipment and power generation system of the Rongfeng Project, by a personal guarantee of Mr. Ku Guohua, the Chairman and CEO of the Company, and by a corporate guarantee of Tangshan Rongfeng Iron & Steel Co., Ltd. and its parent company. | |
On December 6, 2013, Xi’an entered into a CDQ and Waste Heat Power Generation Energy Management Cooperative Agreement (the “Zhongtai Agreement”) with Xuzhou Zhongtai Energy Technology Co., Ltd. (“Zhongtai”), a limited liability company incorporated in Jiangsu Province, China (See Note 1). | |
On December 12, 2013, Xi’an TCH entered into a CDQ Power Generation Energy Management Cooperative Agreement with Tangshan Rongfeng Iron & Steel Co., Ltd. (“Rongfeng”), a limited liability company incorporated in Hebei Province, China (the “Rongfeng Agreement”) (See Note 1). | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Basis of Presentation | ' | |||||||
Basis of Presentation | ||||||||
The consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the SEC for annual financial statements. | ||||||||
Basis of Consolidation | ' | |||||||
Basis of Consolidation | ||||||||
The consolidated financial statements include the accounts of CREG and its subsidiary, Sifang Holdings, its wholly owned subsidiaries, Huahong New Energy Technology Co., Ltd. (“Huahong”) and Shanghai TCH, Shanghai TCH’s wholly-owned subsidiary, Xi’an TCH Energy Tech Co., Ltd. (“Xi’an TCH”) and Xi’an TCH’s subsidiaries, Erdos TCH Energy Saving Development Co., Ltd (“Erdos TCH”), 100% owned by Xi’an TCH (See note 1), and Zhonghong, 90% owned by Xi’an TCH. Substantially all of the Company’s revenues are derived from the operations of Shanghai TCH and its subsidiaries, which represent substantially all of the Company’s consolidated assets and liabilities as of December 31, 2013 and 2012, respectively. All significant inter-company accounts and transactions were eliminated in consolidation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
In preparing these consolidated financial statements in accordance with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets as well as revenues and expenses during the period reported. Actual results may differ from these estimates. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
Sales-type Leasing and Related Revenue Recognition | ||||||||
The Company constructs and leases waste energy recycling power generating projects to its customers. The Company typically transfers ownership of the waste energy recycling power generating projects to its customers at the end of the lease. The investment in these projects is recorded as investment in sales-type leases in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 13, “Accounting for Leases” (codified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 840) and its various amendments and interpretations. The Company finances construction of waste energy recycling power generating. The sales and cost of sales are recognized at the inception of lease. The investment in sales-type leases consists of the sum of the minimum lease payments receivable less unearned interest income and estimated executory cost. Minimum lease payments are part of the lease agreement between the Company (as the lessor) and the customer (as the lessee). The discount rate implicit in the lease is used to calculate the present value of minimum lease payments. The minimum lease payment consists of the gross lease payments net of executory costs and contingent rentals, if any. Unearned interest income is amortized to income over the lease term to produce a constant periodic rate of return on net investment in the lease. While revenue is recognized at the inception of the lease, the cash flow from the sales-type lease occurs over the course of the lease, which results in interest income and reduction of receivables. Revenue is recognized net of sales tax. | ||||||||
Contingent Rental Income | ||||||||
The Company records income from actual electricity usage in addition to minimum lease payments of each project as contingent rental income in the period contingent rental income is earned. Contingent rent is not part of minimum lease payments. | ||||||||
Cash and Equivalents | ' | |||||||
Cash and Equivalents | ||||||||
Cash and equivalents includes cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three (3) months or less as of the purchase date of such investments. | ||||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
As of December 31, 2013 and December 31, 2012, the Company had accounts receivable of $71,573 and $81,819, respectively, from contingent rental income. | ||||||||
Concentration of Credit Risk | ' | |||||||
Concentration of Credit Risk | ||||||||
Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts. | ||||||||
Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. | ||||||||
The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC. | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method over the estimated lives as follows: | ||||||||
Building | 20 years | |||||||
Vehicles | 2 - 5 years | |||||||
Office and Other Equipment | 2 - 5 years | |||||||
Software | 2 - 3 years | |||||||
Impairment of Long-life Assets | ' | |||||||
Impairment of Long-life Assets | ||||||||
In accordance with SFAS 144 (codified in FASB ASC Topic 360), the Company reviews its long-lived assets, including property, plant and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If the total expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There was no impairment as of December 31, 2013 and 2012. | ||||||||
Cost of Sales | ' | |||||||
Cost of Sales | ||||||||
Cost of sales consists primarily of the direct material of the power generating system and expenses incurred directly for project construction for sales-type leasing. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
The Company utilizes SFAS No. 109, “Accounting for Income Taxes,” (codified in FASB ASC Topic 740), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | ||||||||
The Company follows FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN 48”), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. As of December 31, 2013 and 2012, the Company had not taken any uncertain positions that would necessitate recording of tax related liability. | ||||||||
Non-Controlling Interests | ' | |||||||
Non-Controlling Interests | ||||||||
The Company follows FASB ASC Topic 810, “Consolidation,” which established new standards governing the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability (as was previously the case), that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially-owned consolidated subsidiary be allocated to NCIs even when such allocation might result in a deficit balance. | ||||||||
The net income (loss) attributed to NCIs was separately designated in the accompanying statements of income and other comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. | ||||||||
Statement of Cash Flows | ' | |||||||
Statement of Cash Flows | ||||||||
In accordance with SFAS No. 95, “Statement of Cash Flows” (codified in FASB ASC Topic 230), cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments | ||||||||
For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, other receivables, accounts payable, accrued liabilities and short-term debts, the carrying amounts approximate their fair values due to their short maturities. Receivables on sales-type leases are based on interest rates implicit in the lease. | ||||||||
ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value (“FV”) of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: | ||||||||
⋅ | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||
⋅ | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |||||||
⋅ | Level 3 inputs to the valuation methodology are unobservable and significant to FV measurement. | |||||||
The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. | ||||||||
The following are the considerations with respect to disclosures of FV of long-term debt obligations: | ||||||||
As of December 31, 2013, the Company’s long-term debt obligations consisted of the following: (i) bank loans payable of $18.86 million, (ii) a long-term payable for a sale-leaseback transaction of $2.39 million, and (iii) entrusted loan of $62.65 million. As of December 31, 2012, the Company’s long-term debt obligations consisted of (i) bank loans payable of $12.09 million and (ii) a long-term payable for a sale-leaseback transaction of $3.71 million. | ||||||||
FV measurements and approximations for certain financial instruments are based on what a reporting entity would likely have to pay to transfer the financial obligation to an entity with a comparable credit rating. The Company’s bank loans and trust loans payable are privately held (i.e., nonpublic) debt; therefore, pricing inputs are not observable. For this reason, the Company classified bank loans and trust loans payable as a Level 3 FV measurement in the valuation hierarchy. | ||||||||
For each of the Company’s long term debt obligations noted above, the Company believes the carrying amounts approximate their FV. Based on the Company’s understanding of the credit markets, the Company’s business is in a sector (energy-saving green) that is supported by the PRC government and the lending bank, the Company believes it could have obtained similar loans on similar terms and interest rates. In addition, in connection with the FV measurement, the Company considered nonperformance risk (including credit risk) relating to the debt obligations, including the following: (i) the Company is considered a low credit risk customer to the lending bank and its creditors; (ii) the Company has a good history of making timely payments and have never defaulted on any loans; and (iii) the Company has a stable and continuous cash inflow from collections from its sales-type lease of energy saving projects. | ||||||||
As of December 31, 2013 and 2012, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV other than the sale-lease back transaction of $2.39 million described above (See Note 14). | ||||||||
Stock Based Compensation | ' | |||||||
Stock Based Compensation | ||||||||
The Company accounts for its stock-based compensation in accordance with SFAS No. 123R, “Share-Based Payment, an Amendment of FASB Statement No. 123” (codified in FASB ASC Topic 718 and 505). The Company recognizes in its statement of operations FV at the grant date for stock options and other equity-based compensation issued to employees and non-employees. | ||||||||
Basic and Diluted Earnings per Share | ' | |||||||
Basic and Diluted Earnings per Share | ||||||||
The Company presents net income (loss) per share (“EPS”) in accordance with SFAS No. 128, “Earnings per Share” (codified in FASB ASC Topic 740). Accordingly, basic income (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares outstanding, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income by the weighted-average number of common shares outstanding as well as common share equivalents outstanding for the period determined using the treasury-stock method for stock options and warrants and the if-converted method for convertible notes. The Company made an accounting policy election to use the if-converted method for convertible securities that are eligible to receive common stock dividends, if declared. Diluted EPS reflect the potential dilution that could occur based on the exercise of stock options or warrants or conversion of convertible securities using the if-converted method. The following table presents a reconciliation of basic and diluted EPS: | ||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the years ended December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Net income for common shares | $ | 15,629,536 | $ | 3,406,995 | ||||
Interest expense on convertible notes* | - | 383,929 | ||||||
Net income for diluted shares | $ | 15,629,536 | $ | 3,622,924 | ||||
Weighted average shares outstanding – basic | 53,850,289 | 47,560,416 | ||||||
Effect of dilutive securities: | ||||||||
Convertible notes | - | 2,663,934 | ||||||
Options granted | 533,129 | 812,905 | ||||||
Warrants granted | - | - | ||||||
Weighted average shares outstanding – diluted | 54,383,418 | 51,037,255 | ||||||
Earnings per share – basic | $ | 0.29 | $ | 0.07 | ||||
Earnings per share – diluted | $ | 0.29 | $ | 0.07 | ||||
* Interest expense on convertible notes was added back to net income for the computation of diluted EPS. | ||||||||
Foreign Currency Translation and Comprehensive Income (Loss) | ' | |||||||
Foreign Currency Translation and Comprehensive Income (Loss) | ||||||||
The Company’s functional currency is the Renminbi (“RMB”). For financial reporting purposes, RMB were translated into United States Dollars (“USD” or “$”) as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income.” Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. | ||||||||
The Company uses SFAS 130 “Reporting Comprehensive Income” (codified in FASB ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. | ||||||||
Segment Reporting | ' | |||||||
Segment Reporting | ||||||||
SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” (codified in FASB ASC Topic 280) requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. SFAS 131 has no effect on the Company’s financial statements as substantially all of the Company’s operations are conducted in one industry segment. All of the Company’s assets are located in the PRC. | ||||||||
New Accounting Pronouncements | ' | |||||||
New Accounting Pronouncements | ||||||||
In February 2013, the FASB issued ASU 2013-2, Comprehensive Income (ASC Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, the new ASU requires entities to disclose in a single location (either on the face of the financial statement that reports net income or in the notes) the effects of reclassifications out of accumulated other comprehensive income (AOCI). For items reclassified out of AOCI and into net income in their entirety, entities must disclose the effect of the reclassification on each affected net income item. For AOCI reclassification items that are not reclassified in their entirety into net income, entities must provide a cross-reference to other required U.S. GAAP disclosures. There is no change in the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements. The ASU does not change the items currently reported in other comprehensive income. | ||||||||
For public entities, the new disclosure requirements are effective for annual reporting periods beginning after December 15, 2012, and interim periods within those years (i.e., the second quarter of 2013 for entities with calendar year-ends). The ASU applies prospectively, and early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | ||||||||
As of December 31, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s annual consolidated financial statements. | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Property and Equipment Estimated Lives | ' | |||||||
Depreciation of property and equipment is provided using the straight-line method over the estimated lives as follows: | ||||||||
Building | 20 years | |||||||
Vehicles | 2 - 5 years | |||||||
Office and Other Equipment | 2 - 5 years | |||||||
Software | 2 - 3 years | |||||||
Reconciliation of Basic and Diluted Earnings Per Share | ' | |||||||
The following table presents a reconciliation of basic and diluted earnings per share for the years ended December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Net income for common shares | $ | 15,629,536 | $ | 3,406,995 | ||||
Interest expense on convertible notes* | - | 383,929 | ||||||
Net income for diluted shares | $ | 15,629,536 | $ | 3,622,924 | ||||
Weighted average shares outstanding – basic | 53,850,289 | 47,560,416 | ||||||
Effect of dilutive securities: | ||||||||
Convertible notes | - | 2,663,934 | ||||||
Options granted | 533,129 | 812,905 | ||||||
Warrants granted | - | - | ||||||
Weighted average shares outstanding – diluted | 54,383,418 | 51,037,255 | ||||||
Earnings per share – basic | $ | 0.29 | $ | 0.07 | ||||
Earnings per share – diluted | $ | 0.29 | $ | 0.07 | ||||
* Interest expense on convertible notes was added back to net income for the computation of diluted EPS. | ||||||||
NET_INVESTMENT_IN_SALESTYPE_LE1
NET INVESTMENT IN SALES-TYPE LEASES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Components of Net Investment in Sales-Type Leases | ' | |||||||
2013 | 2012 | |||||||
Total future minimum lease payments receivable | $ | 560,187,391 | $ | 380,608,263 | ||||
Less: executory cost | -134,447,605 | -113,529,216 | ||||||
Less: unearned interest income | -241,234,839 | -138,668,584 | ||||||
Net investment in sales - type leases | 184,504,947 | 128,410,463 | ||||||
Current portion | 9,063,386 | 10,389,028 | ||||||
Noncurrent portion | $ | 175,441,561 | $ | 118,021,435 | ||||
Future Minimum Rentals to be Received on Non-Cancelable Sales-Type Leases by Years | ' | |||||||
As of December 31, 2013, the future minimum rentals to be received on non-cancelable sales-type leases by years are as follows: | ||||||||
2014 | $ | 42,518,204 | ||||||
2015 | 39,462,788 | |||||||
2016 | 39,462,788 | |||||||
2017 | 39,462,788 | |||||||
2018 | 39,369,967 | |||||||
Thereafter | 359,910,856 | |||||||
Total | $ | 560,187,391 | ||||||
TAXES_PAYABLE_Tables
TAXES PAYABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Taxes Payable [Abstract] | ' | |||||||
Schedule of Taxes Payable | ' | |||||||
Taxes payable consisted of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Income | $ | 806,231 | $ | 689,532 | ||||
Business | 316,486 | 257,378 | ||||||
VAT arising from transfer WGPG to Shenmu | 393,643 | 381,832 | ||||||
Other | 44,470 | 43,793 | ||||||
$ | 1,560,829 | $ | 1,372,535 | |||||
ACCRUED_LIABILITIES_AND_OTHER_1
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | |||||||
Accrued Liabilities and Other Payables | ' | |||||||
Accrued liabilities and other payables consisted of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Employee training, labor union expenditure and social insurance payable | $ | 521,373 | $ | 372,521 | ||||
Consulting, auditing, and legal expenses | 403,860 | 618,957 | ||||||
Accrued payroll and welfare | 318,871 | 291,310 | ||||||
Accrued system maintenance expense | 49,205 | 47,729 | ||||||
Other | 223,882 | 204,312 | ||||||
Total | $ | 1,517,191 | $ | 1,534,829 | ||||
DEFERRED_TAX_Tables
DEFERRED TAX (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Tax [Abstract] | ' | |||||||
Deferred Tax Liability | ' | |||||||
As of December 31, 2013 and 2012, deferred tax liability consisted of the following: | ||||||||
2013 | 2012 | |||||||
Deferred tax asset — noncurrent (accrual of system maintenance cost) | $ | 70,551 | $ | 48,453 | ||||
Deferred tax asset — noncurrent (depreciation of fixed assets) | 31,308,695 | 22,933,886 | ||||||
Deferred tax liability — noncurrent (net investment in sales-type leases) | -43,263,314 | -29,547,957 | ||||||
Deferred tax liability, net of deferred tax asset – noncurrent | $ | -11,884,068 | $ | -6,565,618 | ||||
Deferred tax liability — current (net investment in sales-type leases) | $ | -1,442,317 | $ | -2,471,925 | ||||
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Reconciliation of U.S. Statutory Rates to Effective Tax Rate | ' | |||||||
The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for years ended December 31, 2013 and 2012, respectively: | ||||||||
2013 | 2012 | |||||||
U.S. statutory rates | 34 | % | 34 | % | ||||
Tax rate difference – current provision | -9.7 | % | -13.4 | % | ||||
Effective tax holiday | -9.5 | % | -8.3 | % | ||||
Non tax-deductible expense | 3 | % | 5.6 | % | ||||
Effect of tax rate change on deferred tax items | 9.7 | % | - | |||||
Valuation allowance on PRC NOL | - | % | 18.7 | % | ||||
Valuation allowance on US NOL | 2.8 | % | 10.9 | % | ||||
Tax per financial statements | 30.3 | % | 47.6 | % | ||||
Provision for Income Tax Expenses | ' | |||||||
The provision for income taxes expense for the years ended December 31, 2013 and 2012 consisted of the following: | ||||||||
2013 | 2012 | |||||||
Income tax expense - current | $ | 2,953,005 | $ | 1,921,842 | ||||
Income tax expense - deferred | 3,933,596 | 1,000,411 | ||||||
Total income tax expenses | $ | 6,886,601 | $ | 2,922,253 | ||||
LOANS_PAYABLE_Tables
LOANS PAYABLE (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Payment to be made by Years | ' | ||||
As of December 31, 2013, the future minimum payment to be made by years was as follows: | |||||
2014 | $ | 1,702,503 | |||
2015 | 1,702,503 | ||||
2016 | 851,252 | ||||
Total | 4,256,258 | ||||
Unamortized interest | -429,785 | ||||
Total long term payable | 3,826,473 | ||||
Current portion | 1,441,051 | ||||
Noncurrent portion | $ | 2,385,422 | |||
Bank Loans and Entrusted Loan [Member] | ' | ||||
Future Minimum Payment to be made by Years | ' | ||||
As of December 31, 2013, the future minimum repayment of all the bank loans and entrusted loan to be made by years was as follows: | |||||
2014 | $ | 14,925,618 | |||
2015 | 9,020,978 | ||||
2016 | 50,845,511 | ||||
2017 | 21,322,312 | ||||
2018 | 328,036 | ||||
Total | $ | 96,442,455 | |||
STOCKBASED_COMPENSATION_PLAN_T
STOCK-BASED COMPENSATION PLAN (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Activity for Warrants to Certain Investor Relations IR Firms | ' | ||||||||||
The following table summarizes activity for the warrants to certain investor relations IR firms: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 50,000 | $ | 1.5 | 2.75 | |||||||
Exercisable at January 1, 2012 | 50,000 | 1.5 | 2.75 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2012 | 50,000 | 1.5 | 1.75 | ||||||||
Exercisable at December 31, 2012 | 50,000 | 1.5 | 1.75 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 50,000 | 1.5 | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2013 | - | - | - | ||||||||
Exercisable at December 31, 2013 | - | $ | - | - | |||||||
Employee Stock Option [Member] | ' | ||||||||||
Summary of Option Activity | ' | ||||||||||
The following table summarizes activity for employees in the Company’s Plan: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 4,466,667 | $ | 1.64 | 2.34 | |||||||
Exercisable at January 1, 2012 | 3,675,333 | 1.35 | 2.07 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | 733,334 | - | - | ||||||||
Outstanding at December 31, 2012 | 3,733,333 | 1.36 | 1.09 | ||||||||
Exercisable at December 31, 2012 | 3,733,333 | 1.36 | 1.09 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 2,650,000 | 0.8 | - | ||||||||
Forfeited | 60,000 | - | - | ||||||||
Outstanding at December 31, 2013 | 1,023,333 | 2.85 | 1.4 | ||||||||
Exercisable at December 31, 2013 | 1,023,333 | $ | 2.85 | 1.4 | |||||||
Independent Directors Compensation Plan [Member] | ' | ||||||||||
Summary of Option Activity | ' | ||||||||||
The following table summarizes option activity with respect to the independent directors: | |||||||||||
Number of | Average | Weighted | |||||||||
Shares | Exercise | Average | |||||||||
Price per Share | Remaining | ||||||||||
Contractual | |||||||||||
Term in Years | |||||||||||
Outstanding at January 1, 2012 | 210,000 | $ | 2.6 | 3.05 | |||||||
Exercisable at January 1, 2012 | 210,000 | 2.6 | 3.05 | ||||||||
Granted | - | - | - | ||||||||
Exercised | - | - | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2012 | 210,000 | 2.6 | 2.05 | ||||||||
Exercisable at December 31, 2012 | 210,000 | 2.6 | 2.05 | ||||||||
Granted | - | - | - | ||||||||
Exercised | 10,000 | 1.85 | - | ||||||||
Forfeited | - | - | - | ||||||||
Outstanding at December 31, 2013 | 200,000 | 2.64 | 1.05 | ||||||||
Exercisable at December 31, 2013 | 200,000 | $ | 2.64 | 1.05 | |||||||
STATUTORY_RESERVES_Tables
STATUTORY RESERVES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Statutory Reserves [Abstract] | ' | |||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||
The table below discloses the statutory reserve amount in the currency type registered for each Chinese subsidiary as of December 31, 2013. | ||||||||||||||
Name of Chinese | Registered | Maximum Statutory | Statutory reserve at December | |||||||||||
Subsidiaries | Capital | Reserve Amount | 31, 2013 | |||||||||||
Shanghai TCH | $ | 29,800,000 | $ | 14,900,000 | ¥ | 6,564,303 | ($959,387) | |||||||
Xi’an TCH | ¥ | 202,000,000 | ¥ | 101,000,000 | ¥ | 45,990,396 | ($6,916,300) | |||||||
Erdos TCH | ¥ | 120,000,000 | ¥ | 60,000,000 | ¥ | 12,052,401 | ($1,797,067) | |||||||
Xi’an Zhonghong | ¥ | 30,000,000 | ¥ | 15,000,000 | Did not accrue yet due to accumulated deficit | |||||||||
Shaanxi Huahong | ¥ | 2,500,300 | ¥ | 1,250,150 | Did not accrue yet due to accumulated deficit | |||||||||
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Rental Payments Required Under Operating Leases | ' | ||||
Future minimum annual rental payments required under operating leases as of December 31, 2013 were as below (by year): | |||||
2014 | $ | 278,000 | |||
2015 | 281,000 | ||||
2016 | 246,000 | ||||
2017 | 39,000 | ||||
Total | $ | 844,000 | |||
ORGANIZATION_AND_DESCRIPTION_O1
ORGANIZATION AND DESCRIPTION OF BUSINESS (Narrative) (Details) | Sep. 05, 2013 | Sep. 05, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 05, 2013 | Sep. 05, 2013 | Jun. 29, 2010 | Jun. 29, 2010 | Jul. 19, 2013 | Jul. 19, 2013 | Jul. 24, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 08, 2012 | Sep. 28, 2011 | Sep. 28, 2011 | Oct. 25, 2012 | Oct. 25, 2012 | 25-May-11 | 25-May-11 | Jun. 25, 2013 | Jul. 22, 2013 | Jul. 22, 2013 | Nov. 30, 2007 | Nov. 30, 2007 | Nov. 30, 2007 | Apr. 14, 2009 | Apr. 14, 2009 | Apr. 14, 2009 | Apr. 14, 2009 | Jun. 15, 2013 | Jun. 15, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Apr. 14, 2009 | Aug. 31, 2013 | Aug. 31, 2013 | Apr. 14, 2009 | Apr. 14, 2009 | Jul. 31, 2013 | Jul. 18, 2013 | Jun. 25, 2013 | Oct. 08, 2012 | Feb. 28, 2011 | Aug. 31, 2013 | Apr. 14, 2009 | Sep. 30, 2010 | Feb. 28, 2011 | Feb. 28, 2011 | 31-May-13 | 31-May-13 | Jun. 25, 2013 | Jun. 25, 2013 | Apr. 14, 2009 | Apr. 14, 2009 | Mar. 30, 2013 | Mar. 30, 2013 | 31-May-13 | 31-May-13 | Feb. 28, 2011 | Feb. 28, 2011 | Jun. 25, 2013 | Sep. 30, 2010 | Dec. 31, 2013 | Sep. 30, 2010 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Dec. 12, 2013 | Dec. 06, 2013 |
USD ($) | CNY | Zhangzhi [Member] | Jing Yang Shengwei [Member] | Jitie [Member] | Shanxi Datong [Member] | Biomass Power Generation Asset Transfer Agreement [Member] | Biomass Power Generation Asset Transfer Agreement [Member] | Biomass Power Generation Project Lease Agreement [Member] | Biomass Power Generation Project Lease Agreement [Member] | Xi'an Zhonghong New Energy Technology Co [Member] | Xi'an Zhonghong New Energy Technology Co [Member] | Boxing County Chengli Gas Supply Co Ltd [Member] | Boxing County Chengli Gas Supply Co Ltd [Member] | Boxing County Chengli Gas Supply Co Ltd [Member] | Phase One [Member] | Phase One [Member] | Phase Two [Member] | Phase Two [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Shenqiu Project [Member] | Hongyuan Huifu [Member] | Tianyu Waste [Member] | Tianyu Waste [Member] | Shanghai Tch Energy Technology Co Ltd [Member] | Shanghai Tch Energy Technology Co Ltd [Member] | Shanghai Tch Energy Technology Co Ltd [Member] | Erdos Metallurgy Company Limited [Member] | Erdos Metallurgy Company Limited [Member] | Erdos Metallurgy Company Limited [Member] | Erdos Metallurgy Company Limited [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Erdos Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Huahong New Energy Technology Co Ltd [Member] | Zhongbao [Member] | Zhongbao [Member] | Zhongbao [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | Xian TCH And Shanxi Datong [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | Tangshan Rongfeng Iron & Steel Co., Ltd [Member] | Xuzhou Zhongtai Energy Technology Co., Ltd [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | EPC General Contractor Agreement [Member] | EPC General Contractor Agreement [Member] | Pucheng [Member] | Shenqiu [Member] | Pucheng [Member] | Shenqiu [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | hp | Jing Yang [Member] | Tong Chuan [Member] | USD ($) | CNY | Initial Investment [Member] | Initial Investment [Member] | USD ($) | CNY | USD ($) | Phase One [Member] | Phase Two [Member] | Initial Investment [Member] | After Return Of Initial Investment [Member] | USD ($) | Clean Development Mechanism [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | Hongyuan Huifu [Member] | Hongyuan Huifu [Member] | Initial Investment [Member] | After Return Of Initial Investment [Member] | Biomass Power Generation System [Member] | Biomass Power Generation System [Member] | Minimum [Member] | Maximum [Member] | Location One [Member] | Location Two [Member] | CNY | hp | Clean Development Mechanism [Member] | First Five Years [Member] | First Five Years [Member] | Second Five Years [Member] | Second Five Years [Member] | Minimum Ten Years [Member] | Minimum Ten Years [Member] | MaximumTen Years [Member] | MaximumTen Years [Member] | USD ($) | CNY | China Orient Asset Management Co., Ltd [Member] | China Orient Asset Management Co., Ltd [Member] | Xi'an TCH Limited Partners [Member] | Xi'an TCH Limited Partners [Member] | Hongyuan Huifu [Member] | Hongyuan Huifu [Member] | CNY | CNY | |||||||||||||||||||
hp | hp | USD ($) | CNY | MW | USD ($) | CNY | hp | hp | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
MW | MW | MW | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity of plant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 23 | ' | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $79,000,000 | 500,000,000 | $17,550,000 | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,600,000 | 180,000,000 | $9,710,000 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution percentage in total investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit distribution percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 40.00% | ' | ' | 20.00% | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | 80.00% | 60.00% | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Construction cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,290,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leasing fees | ' | ' | ' | ' | ' | ' | ' | ' | 279,400 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 286,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 239,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease period | ' | ' | '13 years | '5 years | '24 years | '30 years | ' | ' | '15 years | '15 years | ' | ' | ' | ' | ' | '15 years | '11 years | '10 years | '9 years 6 months | ' | '11 years | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 years | '24 years | ' | ' | ' | ' | '9 years 6 months | '9 years 6 months | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years |
Total cost of project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,100,000 | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original investment by subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,850,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 830,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration of thermal power generation project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,570,000 | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum service fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190,000 | 1,200,000 | 180,000 | 1,100,000 | 160,000 | 1,000,000 | 150,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Installed Plant Capacity | ' | ' | ' | ' | ' | ' | 12 | 12 | 12 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 12 | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.5 | 10.5 | ' | ' | ' | ' | ' | ' | 3 | 7.5 | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscribed amount of initial capital contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | 460,000,000 | 46,670,000 | 280,000,000 | 12,500,000 | 75,000,000 | 16,670,000 | 100,000,000 | ' | ' |
Total Fund Capital Contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,660,000 | 460,000,000 | ' | ' | ' | ' | ' | ' | 1 | 1 |
Partnership Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | '6 years | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Limited Partnership Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Subsidiary For Construction Of Two Coke | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Energy Saving Solution And Services Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,370,000 | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contract Price For Materials Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,340,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,340,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price for Power Generation Systems | 16,480,000 | 100,000,000 | ' | ' | ' | ' | 16,480,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Issuable For Power Generation Systems | 8,766,547 | 8,766,547 | ' | ' | ' | ' | 8,766,547 | 8,766,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Issuable Per Share For Power Generation Systems | $1.87 | ' | ' | ' | ' | ' | $1.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease Amount Per Month | ' | ' | ' | ' | ' | ' | 630,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity per day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of manufacturing lines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration of power generation project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,937,500 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years |
Payment term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | '20 years |
Percentage of accumulated profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minority interest decrease from redemptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | ' | ' |
Accounts receivable | $71,573 | $81,819 |
Sale leaseback transaction, amount due under financing arrangement | 2,390,000 | 2,390,000 |
Entrusted loan [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Long term loans from bank | 62,650,000 | ' |
Bank loans payable [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Long term loans from bank | 18,860,000 | 12,090,000 |
Long term payable [member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Sale leaseback transaction, amount due under financing arrangement | $2,390,000 | $3,710,000 |
Xian Tch [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Equity interest percentage | 100.00% | ' |
Zhonghong [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Equity interest percentage | 90.00% | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '20 years |
Vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '2 years |
Office Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Office Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '2 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '2 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic and Diluted Earnings per Share) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciliation Of Basic and Diluted Earnings [Line Items] | ' | ' | ||
Net income for common shares | $15,629,536 | $3,406,995 | ||
Interest expense on convertible notes | 0 | [1] | 383,929 | [1] |
Net income for diluted shares | $15,629,536 | $3,622,924 | ||
Weighted average shares outstanding - basic (in shares) | 53,850,289 | 47,560,416 | ||
Effect of dilutive securities: | ' | ' | ||
Convertible notes | 0 | 2,663,934 | ||
Options granted | 533,129 | 812,905 | ||
Warrants granted | 0 | 0 | ||
Weighted average shares outstanding - diluted (in shares) | 54,383,418 | [2] | 51,037,255 | [2] |
Earnings per share - basic (in dollars per share) | $0.29 | $0.07 | ||
Earnings per share - diluted (in dollars per share) | $0.29 | [2] | $0.07 | [2] |
[1] | Interest expense on convertible notes was added back to net income for the computation of diluted EPS. | |||
[2] | Interest expense accrued on convertible notes is added back to net income for the computation of diluted EPS. |
NET_INVESTMENT_IN_SALESTYPE_LE2
NET INVESTMENT IN SALES-TYPE LEASES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Investment [Line Items] | ' |
Sale Leaseback Transaction Lease Terms | 'Under sales-type leases, Xian TCH leased TRT system to Zhangzhi with terms of 13 years; and leased CHPG systems to Jing Yang Shengwei for 5 years, BMPG systems to Pucheng Phase I and II for 15 and 10 years respectively, BMPG systems to Shenqiu Phase I for 11 years and Shenqiu Phase II for 9.5 years, WHPG system of Zhongbao for 9 years, WHPG systems of Jitie for 24 years, and Datong two TRT systems for 30 years, and Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five projects) for 20 years |
NET_INVESTMENT_IN_SALESTYPE_LE3
NET INVESTMENT IN SALES-TYPE LEASES (Components of Net Investment in Leases) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Total future minimum lease payments receivable | $560,187,391 | $380,608,263 |
Less: executory cost | -134,447,605 | -113,529,216 |
Less: unearned interest income | -241,234,839 | -138,668,584 |
Net investment in sales - type leases | 184,504,947 | 128,410,463 |
Current portion | 9,063,386 | 10,389,028 |
Noncurrent portion | $175,441,561 | $118,021,435 |
NET_INVESTMENT_IN_SALESTYPE_LE4
NET INVESTMENT IN SALES-TYPE LEASES (Schedule of Future Minimum Rentals) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
2014 | $42,518,204 | ' |
2015 | 39,462,788 | ' |
2016 | 39,462,788 | ' |
2017 | 39,462,788 | ' |
2018 | 39,369,967 | ' |
Thereafter | 359,910,856 | ' |
Total | $560,187,391 | $380,608,263 |
RESTRICTED_CASH_NOTES_PAYABLE_1
RESTRICTED CASH, NOTES PAYABLE - BANK ACCEPTANCES (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Bankers Acceptance [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Restricted cash | $2,296,249 | $2,725,002 | ' |
Deposit as a principal-guaranteed financial investment | ' | $954,578 | ' |
Bank acceptance maturity period | ' | ' | '6 years |
PREPAID_EXPENSES_Narrative_Det
PREPAID EXPENSES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Prepaid Expense Current And Noncurrent | $74,000,000 | 460,000,000 |
Percentage Of Funds Raised | 2.00% | 2.00% |
Consulting Fees | 1,500,000 | 9,200,000 |
Percentage Of Funds Actually Contributed | 2.00% | 2.00% |
Prepaid Consulting Expenses | 1,500,000 | ' |
Amortisation Prepaid Consulting Expenses | $616,866 | ' |
CONSTRUCTION_IN_PROGRESS_Narra
CONSTRUCTION IN PROGRESS (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | $83,719,596 | $22,993,905 |
Shannxi Datong Coal Group [Member] | ' | ' |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | 17,010,000 | 19,270,000 |
Additional Construction In Progress Gross | 3,770,000 | ' |
Xuzhou Huayu project [Member] | ' | ' |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | 25,540,000 | ' |
Additional Construction In Progress Gross | 8,200,000 | ' |
Xuzhou Tian'an project [Member] | ' | ' |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | 17,190,000 | ' |
Additional Construction In Progress Gross | 16,400,000 | ' |
Shandong Boxing project [Member] | ' | ' |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | 23,980,000 | ' |
Additional Construction In Progress Gross | 9,840,000 | ' |
Shenqiu Project Phase II [Member] | ' | ' |
Construction Contracts [Line Items] | ' | ' |
Construction in progress | ' | $3,720,000 |
TAXES_PAYABLE_Details
TAXES PAYABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Taxes Payable [Line Items] | ' | ' |
Taxes payable | $1,560,829 | $1,372,535 |
Income [Member] | ' | ' |
Taxes Payable [Line Items] | ' | ' |
Taxes payable | 806,231 | 689,532 |
Business [Member] | ' | ' |
Taxes Payable [Line Items] | ' | ' |
Taxes payable | 316,486 | 257,378 |
VAT arising from transfer WGPG to Shenmu [Member] | ' | ' |
Taxes Payable [Line Items] | ' | ' |
Taxes payable | 393,643 | 381,832 |
Other [Member] | ' | ' |
Taxes Payable [Line Items] | ' | ' |
Taxes payable | $44,470 | $43,793 |
ACCRUED_LIABILITIES_AND_OTHER_2
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | $1,517,191 | $1,534,829 |
Employee training, labor union expenditure and social insurance [Member] | ' | ' |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | 521,373 | 372,521 |
Consulting, auditing, and legal expenses [Member] | ' | ' |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | 403,860 | 618,957 |
Accrued payroll and welfare [Member] | ' | ' |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | 318,871 | 291,310 |
Accrued system maintenance expense [Member] | ' | ' |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | 49,205 | 47,729 |
Other [Member] | ' | ' |
Accounts Payable and Accrued Liabilities [Line Items] | ' | ' |
Accrued liabilities and other payables | $223,882 | $204,312 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Advance to related party | $2,420,391 | $0 |
Advance To Related Party | 0 | 440,987 |
Management [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Advance To Related Party | 40,657 | 40,876 |
Erdos Metallurgy Co. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Advance To Related Party | ' | 481,863 |
Chief Executive Officer [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Advance To Related Party | $2,379,734 | ' |
LONG_TERM_INVESTMENT_Narrative
LONG TERM INVESTMENT (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Dec. 31, 2013 | Jul. 18, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Dec. 31, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Dec. 31, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | |
HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | China Orient Asset Management Co., Ltd [Member] | China Orient Asset Management Co., Ltd [Member] | Hongyuan Recycling Energy Investment Management Co.Ltd [Member] | Hongyuan Recycling Energy Investment Management Co.Ltd [Member] | Hongyuan Huifu [Member] | Zhonghong [Member] | Zhonghong [Member] | |
USD ($) | CNY | USD ($) | USD ($) | CNY | Ownership Interest [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | HYREF Fund [Member] | USD ($) | CNY | USD ($) | CNY | ||||
USD ($) | CNY | USD ($) | CNY | ||||||||||||||
Long Term Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | 10,000,000 | ' | ' | ' |
Original Investment By Subsidiary | ' | 46,670,000 | 280,000,000 | ' | ' | 650,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit distribution percentage | ' | ' | ' | 20.00% | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' |
One Time Commission To Fund Management | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment cost | ' | 830,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscribed Amount Of Initial Capital Contribution | ' | ' | ' | ' | ' | ' | ' | ' | 12,500,000 | 75,000,000 | 16,670,000 | 100,000,000 | ' | ' | ' | ' | ' |
Percentage Of Owned Fund | ' | ' | ' | ' | 16.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | 12,300,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' |
Total Fund Capital Contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | 460,000,000 |
Preferred Limited Partnership Term | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership Term | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary Limited Partnership Terms | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity based invstment income | ' | ' | ' | $162,956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NONCONTROLLING_INTEREST_Narrat
NONCONTROLLING INTEREST (Narrative) (Details) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | Jul. 31, 2013 | Jun. 15, 2013 | Jun. 15, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Jun. 15, 2013 | Jul. 31, 2013 | Jul. 15, 2013 | Jul. 15, 2013 | Jul. 15, 2013 | Dec. 31, 2013 | Jun. 15, 2013 | Jun. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 15, 2013 | Jun. 15, 2013 | Dec. 31, 2013 | |
Erdos Metallurgy [Member] | Erdos Metallurgy [Member] | Erdos Metallurgy [Member] | Erdos Metallurgy [Member] | Erdos Metallurgy [Member] | Erdos Metallurgy [Member] | ErdosTCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Investment Center [Member] | Erdos Tch Energy Saving Development Co Ltd [Member] | Erdos Tch Energy Saving Development Co Ltd [Member] | Erdos Tch Energy Saving Development Co Ltd [Member] | Erdos Tch Energy Saving Development Co Ltd [Member] | Xian Tch Energy Tech Co Ltd [Member] | Xian Tch Energy Tech Co Ltd [Member] | Xian Tch Energy Tech Co Ltd [Member] | Xian Tch Energy Tech Co Ltd [Member] | |
USD ($) | CNY | USD ($) | CNY | Noncontrolling Interest [Member] | USD ($) | USD ($) | CNY | USD ($) | CNY | After Modification [Member] | USD ($) | CNY | After Modification [Member] | ||||||
USD ($) | |||||||||||||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest percentage | ' | ' | ' | ' | ' | ' | 100.00% | ' | 90.00% | 90.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Total registered capital | ' | ' | ' | ' | ' | ' | $17,550,000 | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' |
Profit distribution percentage | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | 40.00% | 80.00% | ' | ' | 60.00% |
Contributed in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,180,000 | 8,000,000 | ' | ' | 16,370,000 | 112,000,000 | ' |
Minority interest decrease from redemptions | 1,290,000 | 8,000,000 | 1,290,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minority interest ownership percentage by noncontrolling owners | ' | ' | 7.00% | 7.00% | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retained earnings accumulated deficit | ' | ' | ' | ' | ' | 226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital | ' | ' | ' | ' | ' | ' | ' | ' | 4,880,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | $4,370,000 | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | 100.00% | ' | 90.00% | 90.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Indirect Ownership Percentage Details | ' | ' | ' | ' | ' | ' | ' | 'Investment Center was 16.3% owned by Xian TCH and 1.1% owned by the Fund Management Company, and the Fund Management Company was 40% owned by Xian TCH as described in Note 10, which resulted in an additional indirect ownership of Xian TCH in Zhonghong of 1.7% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.30% | ' | ' | ' | ' | ' | ' | ' | ' |
DEFERRED_TAX_Summary_of_Deferr
DEFERRED TAX (Summary of Deferred Tax Liability) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred tax liability, net | $11,884,068 | $6,565,618 |
Deferred Tax Liabilities, Net, Current | 1,442,317 | 2,471,925 |
Accrual of system maintenance cost [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred Tax Assets, Net, Noncurrent | 70,551 | 48,453 |
Depreciation of fixed assets [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred Tax Assets, Net, Noncurrent | 31,308,695 | 22,933,886 |
Net investment in sales-type leases [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred tax liability, net | -43,263,314 | -29,547,957 |
Deferred Tax Liabilities, Net, Current | ($1,442,317) | ($2,471,925) |
INCOME_TAX_Narrative_Details
INCOME TAX (Narrative) (Details) (USD $) | 8 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | ' | 30.30% | 47.60% |
Net operating losses | ' | 12.14 | ' |
Deferred tax assets, valuation allowance, percentage | ' | 100.00% | ' |
Operating Incoe Loss Carryforwards Year | ' | '20 years | ' |
Foregin Reatined Earnings Before Application Of Tax | ' | 24.58 | 9.1 |
Undistributed Earnings of Foreign Subsidiaries | ' | 81.04 | ' |
Federal income additional taxes | ' | 16.5 | ' |
Shanghai TCH [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | ' | 25.00% | 25.00% |
Xian TCH [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 15.00% | 15.00% | 25.00% |
China [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | ' | 25.00% | ' |
Erdos TCH Zhonghong Huahong [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | ' | 25.00% | 25.00% |
INCOME_TAX_Schedule_of_Effecti
INCOME TAX (Schedule of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Effective Tax Rate [Line Items] | ' | ' |
U.S. statutory rates | 34.00% | 34.00% |
Tax rate difference - current provision | -9.70% | -13.40% |
Effective tax holiday | -9.50% | -8.30% |
Non tax-deductible expense | 3.00% | 5.60% |
Effect of tax rate change on deferred tax items | 9.70% | 0.00% |
Valuation allowance on PRC NOL | 0.00% | 18.70% |
Valuation allowance on US NOL | 2.80% | 10.90% |
Tax per financial statements | 30.30% | 47.60% |
INCOME_TAX_Provision_for_Incom
INCOME TAX (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Provision For Income Taxes Expenses [Line Items] | ' | ' |
Income tax expense - current | $2,953,005 | $1,921,842 |
Income tax expense - deferred | 3,933,596 | 1,000,411 |
Total income tax expense | $6,886,601 | $2,922,253 |
LOANS_PAYABLE_Collective_Capit
LOANS PAYABLE (Collective Capital Trust Plan) (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2011 | |
USD ($) | CNY | Mr. Guoha Ku [Member] | Mr. Guoha Ku [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | A1 [Member] | A1 [Member] | A2 [Member] | A3 [Member] | B Category [Member] | B Category [Member] | B Category [Member] | Industrial Bank Loan Two [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Xi'an TCH [Member] | Erdos TCH [Member] | Xi'an TCH [Member] | ||||||||
USD ($) | USD ($) | USD ($) | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, stated rate | ' | ' | ' | ' | ' | ' | ' | ' | 9.94% | ' | 11.00% | 12.05% | 8.35% | ' | ' | ' |
Debt instrument maturity term | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '3 years | '4 years | ' | ' | ' | '3 years |
Stock unit issued | $44,100,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | $235,600 | ' | ' | ' | $2,000,000 | $7,400,000 | ' |
Stock unit issued (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' | 13,750,000 | 46,250,000 | ' |
Trust loan payable | ' | ' | ' | ' | 0 | ' | 31,400,000 | 197,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, gross | ' | ' | 1,250,000 | 7,650,000 | 7,590,000 | 46,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, increase, accrued interest | ' | ' | $75,000 | 459,000 | $460,000 | 2,775,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_PAYABLE_Entrusted_Loan_P
LOANS PAYABLE (Entrusted Loan Payable) - (Narrative) (Details) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Xi'an TCH Limited Partner [Member] | Xi'an TCH Limited Partner [Member] | Entrusted loan [Member] | Entrusted loan [Member] | Entrusted loan [Member] | Zhonghong [Member] | Zhonghong [Member] | HYREF Fund [Member] | HYREF Fund [Member] | ||
USD ($) | CNY | USD ($) | CNY | Xi'an TCH Limited Partner [Member] | USD ($) | CNY | USD ($) | CNY | ||
USD ($) | ||||||||||
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | 3,000,000 |
Debt Investments | ' | ' | ' | 74,500,000 | 457,000,000 | ' | 74,500,000 | 457,000,000 | ' | ' |
Percentage Of Service Fee On Loan | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description Of Loan Payable1 | ' | ' | ' | 'During the first three years from the first release of the loan, the balance in its account shall be no less than RMB 7.14 million ($1.19 million) on the 20th day of the 2nd month of each quarter and no less than RMB 14.28 million ($2.38 million) on the 14th day of the last month of each quarter | ' | ' | ' | ' | ' | ' |
Description Of Loan Payable2 | ' | ' | ' | 'During the fourth year from the first release of the loan, the balance in its account shall be no less than RMB 1.92 million ($0.32 million) on the 20th day of the 2nd month of each quarter and no less than RMB 3.85 million ($0.64 million) on the 14th day of the last month of each quarter | ' | ' | ' | ' | ' | ' |
Total Fund Capital Contribution | ' | ' | ' | ' | ' | ' | 75,000,000 | 460,000,000 | ' | ' |
Description Of Loan Payable3 | ' | ' | ' | 'During the fifth year from the first release of the loan, the balance in its account shall be no less than RMB 96,300 ($16,050) on the 20th day of the 2nd month of each quarter and no less than RMB 192,500 ($32,080) on the 14th day of the last month of each quarter. | ' | ' | ' | ' | ' | ' |
Loan Payable Term | ' | ' | ' | '60 months | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | ' | ' | ' | 45,540,000 | 280,000,000 | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | ' | ' | ' | 16,270,000 | 100,000,000 | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | ' | ' | ' | 12,520,000 | 77,000,000 | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' |
Interest Expense, Debt | ' | ' | ' | 1,126,396 | ' | ' | ' | ' | ' | ' |
Loans Payable To Bank, Noncurrent | ' | ' | ' | 62,650,000 | ' | 12,300,000 | ' | ' | ' | ' |
Capital Contribution | ' | ' | 27,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loans Payable, Fair Value Disclosure | ' | $12,300,000 | ' | $74,960,000 | ' | ' | ' | ' | ' | ' |
LOANS_PAYABLE_Bank_Long_Term_L
LOANS PAYABLE (Bank Long Term Loans - Industrial Bank) (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 08, 2011 | Nov. 08, 2011 | Dec. 31, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | USD ($) | Industrial Bank Loan One [Member] | Industrial Bank Loan One [Member] | Industrial Bank Loan One [Member] | Industrial Bank Loan Two [Member] | Industrial Bank Loan Two [Member] | Industrial Bank Loan Three [Member] | Industrial Bank Loan Three [Member] | Industrial Bank Loan Four [Member] | Industrial Bank Loan Four [Member] | Industrial Bank Loan Four [Member] | Industrial Bank Loan Five [Member] | Industrial Bank Loan Five [Member] | Industrial Bank Loan Five [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2017 [Member] | 2017 [Member] | |
USD ($) | CNY | Minimum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||
USD ($) | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank loans payable issued | ' | ' | ' | $4,880,000 | 30,000,000 | ' | $4,880,000 | 30,000,000 | $488,000 | 3,000,000 | $21,040,000 | 130,000,000 | ' | $16,400,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity term | ' | ' | ' | '3 years | '3 years | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate as percentage of national base interest rate used to reset floating interest rate | ' | ' | ' | 110.00% | 110.00% | ' | 115.00% | 115.00% | ' | ' | 115.00% | 115.00% | ' | 120.00% | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | 6.77% | 6.77% | ' | 7.07% | 7.07% | ' | ' | 7.36% | 7.36% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum quarterly payment | 1,618,463 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 615,067 | 3,750,000 | 1,025,111 | 6,250,000 | 1,230,133 | 7,500,000 | 1,230,133 | 7,500,000 |
Current assets | 23,496,490 | ' | 60,621,600 | ' | 500,000,000 | 79,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets to liability ratio | ' | ' | ' | 80.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current ratio | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | 980,000 | ' | ' | ' | 11,480,000 | ' | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loans outstanding, current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,560,000 | ' | ' | 2,460,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,920,000 | ' | ' | $13,940,000 | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_PAYABLE_Bank_Loan_Bank_o
LOANS PAYABLE (Bank Loan - Bank of Xi'an) (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 28, 2013 | Mar. 28, 2013 | Mar. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Loan From Bank Of Xian [Member] | Loan From Bank Of Xian [Member] | Loan From Bank Of Xian [Member] | Loan From Bank Of Xian [Member] | Industrial Bank Loan One [Member] | Industrial Bank Loan One [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Bank loans payable issued | $4,880,000 | 30,000,000 | $4,880,000 | 30,000,000 | $4,880,000 | 30,000,000 |
Debt instrument maturity term | '1 year | '1 year | '1 year | '1 year | '3 years | '3 years |
Debt Instrument, stated rate | 0.58% | 0.58% | 0.60% | 0.60% | ' | ' |
Re-guarantee service fee | $115,315 | 712,500 | $119,322 | 750,000 | ' | ' |
Debt Instrument, Maturity Date | 27-Mar-14 | 27-Mar-14 | 1-Mar-13 | 1-Mar-13 | ' | ' |
LOANS_PAYABLE_Financing_Agreem
LOANS PAYABLE (Financing Agreement- Sale Lease-Back Transaction (Long Term Payable)) - (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | USD ($) | Financing Agreement with Cinda Financial Leasing Co., Ltd [Member] | Financing Agreement with Cinda Financial Leasing Co., Ltd [Member] | Financing Agreement with Cinda Financial Leasing Co., Ltd [Member] | Financing Agreement with Cinda Financial Leasing Co., Ltd [Member] | |
USD ($) | CNY | USD ($) | CNY | |||
Sale Leaseback Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Net Proceeds | ' | ' | $6,720,000 | 42,500,000 | ' | ' |
Sales leaseback term | ' | ' | '5 years | '5 years | ' | ' |
Rate as percentage of national base interest rate used to reset floating interest rate | ' | ' | 6.65% | 6.65% | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 15.00% | 15.00% | ' | ' |
Debt Instrument, stated rate | ' | ' | 7.65% | 7.65% | ' | ' |
Present value of future minimum lease Payments, Sale leaseback transactions | 3,826,473 | ' | 8,150,000 | 51,540,000 | ' | ' |
Final reacquisition amount to be paid under sale leaseback agreement | ' | ' | 676 | 4,250 | ' | ' |
Sale Leaseback Transaction, Quarterly Rental Payments | ' | ' | 412,855 | 2,594,998 | ' | ' |
One-time non-refundable leasing service charge | ' | ' | 405,696 | 2,550,000 | ' | ' |
Refundable security deposit | ' | ' | 338,079 | 2,125,000 | ' | ' |
Amortization of prepaid leasing service fee | ' | ' | 82,070 | 510,000 | 80,792 | 510,000 |
Prepaid loan fees - current | 83,649 | 81,139 | 83,649 | ' | ' | ' |
Prepaid loan fees - noncurrent | 125,474 | 202,848 | 125,474 | ' | ' | ' |
Repayment | ' | ' | $4,255,949 | ' | ' | ' |
LOANS_PAYABLE_Future_Minimum_R
LOANS PAYABLE (Future Minimum Repayments of all Bank Loans and Entrusted Loan ) (Details) (Bank Loans and Entrusted Loan [Member], USD $) | Dec. 31, 2013 |
Bank Loans and Entrusted Loan [Member] | ' |
Debt Instrument [Line Items] | ' |
2014 | $14,925,618 |
2015 | 9,020,978 |
2016 | 50,845,511 |
2017 | 21,322,312 |
2018 | 328,036 |
Total | $96,442,455 |
LOANS_PAYABLE_Schedule_of_Futu
LOANS PAYABLE (Schedule of Future Minimum Payments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Future Minimum Payments [Line Items] | ' | ' |
2014 | $1,702,503 | ' |
2015 | 1,702,503 | ' |
2016 | 851,252 | ' |
Total | 4,256,258 | ' |
Unamortized interest | -429,785 | ' |
Total long term payable | 3,826,473 | ' |
Current portion | 1,441,051 | 1,292,185 |
Noncurrent portion | $2,385,422 | ' |
NOTE_PAYABLE_Narrative_Details
NOTE PAYABLE (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 20, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 09, 2011 | Aug. 18, 2010 | Aug. 18, 2010 | Aug. 18, 2010 | Jun. 20, 2012 | Jan. 30, 2011 | Jan. 30, 2011 | Dec. 30, 2010 | Dec. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Aug. 18, 2010 | Nov. 30, 2012 | Dec. 31, 2011 | Dec. 09, 2011 | Dec. 16, 2011 | Dec. 16, 2011 | Dec. 09, 2011 | Dec. 09, 2011 | |
USD ($) | USD ($) | CNY | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debts [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche One [Member] | Convertible Debt Tranche Two [Member] | Convertible Debt Tranche Two [Member] | Convertible Debt Tranche Two [Member] | Capital Trust Loan Agreement [Member] | Capital Trust Loan Agreement [Member] | Capital Trust Loan Agreement [Member] | Capital Trust Loan Agreement [Member] | |
USD ($) | USD ($) | USD ($) | CNY | CNY | CNY | USD ($) | Jingu [Member] | Jingu [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | Xian Tch [Member] | |||||||||
USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | ||||||||||||||||||||||
Convertible Notes Payable and Revolving Financing Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note to be issued under repurchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional interest charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.46 | ' | ' | ' | ' | ' | ' | ' | $2.46 | $2.46 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible loans principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum interest rate | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares used as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income Loss Carry forwards Year | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest pledge as guarantee of loan | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,533,391 | 50,000,000 | 7,533,391 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | 18.00% | ' | ' | ' | ' | ' |
Convertible notes | ' | ' | 25 | 3,760,000 | ' | 3,970,000 | 25,000,000 | 25,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid | 14,294,572 | 9,754,133 | ' | ' | ' | 1,130,000 | 7,140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 6,450,000 | ' | ' |
Amortization of beneficial conversion feature | ' | ' | ' | ' | 2,140,050 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | 487,080 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,940,000 | 50,000,000 |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_PLAN_N
STOCK-BASED COMPENSATION PLAN (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 8 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||
Aug. 13, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 07, 2010 | Jan. 20, 2010 | Oct. 30, 2009 | Dec. 31, 2013 | Oct. 31, 2009 | Aug. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Dec. 31, 2013 | Nov. 11, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 13, 2010 | Dec. 31, 2013 | Nov. 11, 2009 | Nov. 11, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 04, 2008 | Nov. 11, 2009 | Aug. 13, 2010 | |
Independent Directors Compensation Plan [Member] | Independent Directors Compensation Plan [Member] | Independent Directors Compensation Plan [Member] | Independent Directors Compensation Plan [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Cashless Exercise [Member] | Cashless Exercise [Member] | Cashless Exercise [Member] | Cashless Exercise [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | 2007 Plan [Member] | Two Other Employees [Member] | Managerial And Non Managerial Employees [Member] | ||||
Independent Directors Compensation Plan [Member] | Independent Directors Compensation Plan [Member] | Second and Third Tranche [Member] | Second and Third Tranche [Member] | Options Vested [Member] | Unvested Options [Member] | Cashless Exercise [Member] | Cashless Exercise [Member] | Employee Stock Option [Member] | 2007 Plan [Member] | |||||||||||||||||||
Employee Stock Option [Member] | ||||||||||||||||||||||||||||
Granted | ' | ' | ' | 40,000 | 40,000 | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 290,000 | 2,200,000 |
Common Stock, Par or Stated Value Per Share | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' |
Grant date excersise price | ' | ' | ' | ' | $4.68 | $1.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | $0.80 | $2.35 | $3.05 |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Estimated life | ' | ' | ' | '5 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '5 years | ' | ' |
Volatility percentage rate | ' | ' | ' | 87.00% | 100.00% | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 92.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Risk free interest rate | ' | ' | ' | 3.54% | 3.54% | 3.54% | ' | 3.54% | ' | ' | ' | ' | ' | ' | ' | 3.84% | ' | ' | ' | 3.54% | ' | ' | ' | ' | ' | 2.76% | ' | ' |
Dividend yield | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | 0.00% | ' | ' |
Grant date fair value | ' | ' | ' | $83,000 | $142,000 | $183,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $518,513 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,040,000 | ' | ' |
Vesting terms | 'According to the vesting terms, the options granted were divided into three tranches, (i) 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets its minimum revenue and earnings goals in the Companys guidance for 2010 as delivered in its earnings releases and/or conference calls in the first quarter of 2010, such vesting to occur immediately upon completion of the annual audit confirming the financial results for 2010; and (ii) an additional 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets certain financial goals of 2011 which will be set out and decided by the Compensation Committee, such vesting to occur immediately upon Compensation Committees determination that the Company has met such goals for 2011; and (iii) the remaining 1/3 (one third) of the total number of shares subject to the options shall vest and become exercisable if the Company meets certain financial goals of 2012 which is set out and decided by the Compensation Committee, such vesting is to occur immediately upon Compensation Committees determination that the Company has met such goals for 2012. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled/forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,000 | 203,000 | ' | ' | ' | ' | ' |
Stock options and warrants expenses | ' | 0 | 89,252 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 89,252 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | 0 | 50,000 | 0 | 0 | 10,000 | ' | 2,650,000 | 0 | ' | ' | ' | ' | ' | 2,650,000 | 0 | ' | ' | ' |
Compensation per month | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting date | ' | ' | ' | ' | ' | ' | ' | 1-Jul-10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date | ' | ' | ' | ' | ' | ' | ' | 1-Oct-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercises In Period Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercised | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | ' | ' | ' | ' | 5,261 | ' | 26,489 | ' | ' | ' | ' | ' | ' | ' | 1,887,411 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercisable, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,023,333 | 3,733,333 | 3,675,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.85 | $1.36 | $1.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | $2.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | '1 year 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_PLAN_S
STOCK-BASED COMPENSATION PLAN (Summary of Option Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | ' | ' |
Number of Shares | ' | ' |
Beginning Balance, Outstanding | 3,733,333 | 4,466,667 |
Beginning Balance, Exercisable | 3,733,333 | 3,675,333 |
Granted | 0 | 0 |
Exercised | 2,650,000 | 0 |
Forfeited | 60,000 | 733,334 |
Ending Balnce, Outstanding | 1,023,333 | 3,733,333 |
Ending Balance, Exercisable | 1,023,333 | 3,733,333 |
Average Exercise Price per Share | ' | ' |
Beginning Balance, Outstanding | $1.36 | $1.64 |
Beginning Balance, Exercisable | $1.36 | $1.35 |
Granted | $0 | $0 |
Exercised | $0.80 | $0 |
Forfeited | $0 | $0 |
Ending Balance, Outstanding | $2.85 | $1.36 |
Ending Balance, Exercisable | $2.85 | $1.36 |
Weighted Average Remaining Contractual Term in Years | ' | ' |
Beginning Balance, Outstanding | '1 year 1 month 2 days | '2 years 4 months 2 days |
Beginning Balance, Exercisable | '1 year 1 month 2 days | '2 years 25 days |
Granted | '0 years | '0 years |
Exercised | '0 years | '0 years |
Forfeited | '0 years | '0 years |
Ending Balance, Outstanding | '1 year 4 months 24 days | '1 year 1 month 2 days |
Ending Balance, Exercisable | '1 year 4 months 24 days | '1 year 1 month 2 days |
Independent Directors Compensation Plan [Member] | ' | ' |
Number of Shares | ' | ' |
Beginning Balance, Outstanding | 210,000 | 210,000 |
Beginning Balance, Exercisable | 210,000 | 210,000 |
Granted | 0 | 0 |
Exercised | 10,000 | 0 |
Forfeited | 0 | 0 |
Ending Balnce, Outstanding | 200,000 | 210,000 |
Ending Balance, Exercisable | 200,000 | 210,000 |
Average Exercise Price per Share | ' | ' |
Beginning Balance, Outstanding | $2.60 | $2.60 |
Beginning Balance, Exercisable | $2.60 | $2.60 |
Granted | $0 | $0 |
Exercised | $1.85 | $0 |
Forfeited | $0 | $0 |
Ending Balance, Outstanding | $2.64 | $2.60 |
Ending Balance, Exercisable | $2.64 | $2.60 |
Weighted Average Remaining Contractual Term in Years | ' | ' |
Beginning Balance, Outstanding | '2 years 18 days | '3 years 18 days |
Beginning Balance, Exercisable | '2 years 18 days | '3 years 18 days |
Granted | '0 years | '0 years |
Exercised | '0 years | '0 years |
Forfeited | '0 years | '0 years |
Ending Balance, Outstanding | '1 year 18 days | '2 years 18 days |
Ending Balance, Exercisable | '1 year 18 days | '2 years 18 days |
STOCKBASED_COMPENSATION_PLAN_S1
STOCK-BASED COMPENSATION PLAN (Summary of Activity for Warrants) (Details) (Warrant [Member], USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | |
Warrant [Member] | ' | ' | ' |
Number of Shares | ' | ' | ' |
Beginning Balance, Outstanding | ' | 50,000 | 50,000 |
Beginning Balance, Exercisable | ' | 50,000 | 50,000 |
Granted | 200,000 | 0 | 0 |
Exercised | ' | 50,000 | 0 |
Forfeited | ' | 0 | 0 |
Ending Balance, Outstanding | ' | 0 | 50,000 |
Ending Balance, Exercisable | ' | 0 | 50,000 |
Average Exercise Price per Share | ' | ' | ' |
Beginning Balance, Outstanding | ' | $1.50 | $1.50 |
Beginning Balance, Exercisabe | ' | $1.50 | $1.50 |
Granted | ' | $0 | $0 |
Exercised | ' | $1.50 | $0 |
Forfeited | ' | $0 | $0 |
Ending Balance, Outstanding | ' | $0 | $1.50 |
Ending Balance, Exercisable | ' | $0 | $1.50 |
Weighted Average Remaining Contractual Term in Years | ' | ' | ' |
Beginning Balance, Outstanding | ' | ' | '2 years 9 months |
Beginning Balance, Exercisable | ' | ' | '2 years 9 months |
Granted | ' | '0 years | '0 years |
Exercised | ' | '0 years | '0 years |
Forfeited | ' | '0 years | '0 years |
Ending Balance, Outstanding | ' | '0 years | '1 year 9 months |
Ending Balance, Exercisable | ' | '0 years | '1 year 9 months |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERSb EQUITY (Narrative) (Details) | Sep. 05, 2013 | Sep. 05, 2013 |
In Millions, except Share data, unless otherwise specified | USD ($) | CNY |
Stockholders Equity Note [Line Items] | ' | ' |
Common Stock Issuable For Power Generation Systems | 8,766,547 | 8,766,547 |
Common Stock Issuable Per Share For Power Generation Systems | $1.87 | ' |
Payable For Power Generation Systems | $16.48 | 100 |
STATUTORY_RESERVES_Narrative_D
STATUTORY RESERVES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Statutory Surplus Reserve Fund [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Percentage of income transferred to retained earnings appropriated for legal reserve | 10.00% |
Statutory Surplus Reserve Fund [Member] | Maximum [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Statutory surplus reserve fund percentage | 50.00% |
Statutory Surplus Reserve Fund [Member] | Minimum [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Percentage of total remaining reserve | 25.00% |
Common Welfare Fund [Member] | Maximum [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Percentage Of Income Transferred To Common Welfare Fund For Legal Reserve | 10.00% |
Common Welfare Fund [Member] | Minimum [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Percentage Of Income Transferred To Common Welfare Fund For Legal Reserve | 5.00% |
STATUTORY_RESERVES_Details
STATUTORY RESERVES (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Shanghai TCH [Member] | Shanghai TCH [Member] | Xian Tch [Member] | Xian Tch [Member] | Erdos TCH [Member] | Erdos TCH [Member] | Xiban Zhonghong [Member] | Shaanxi Huahong [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | |
Schedule Of Statutory Reserves [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Registered Capital | $29,800,000 | ' | ' | 202,000,000 | ' | 120,000,000 | 30,000,000 | 2,500,300 |
Maximum Statutory Reserve Amount | 14,900,000 | ' | ' | 101,000,000 | ' | 60,000,000 | 15,000,000 | 1,250,150 |
Statutory Reserve | $959,387 | 6,564,303 | $6,916,300 | 45,990,396 | $1,797,067 | 12,052,401 | ' | ' |
CONTINGENCIES_Narrative_Detail
CONTINGENCIES (Narrative) (Details) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | |
USD ($) | CNY | USD ($) | CNY | |||
Schedule Of Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Project period | ' | ' | '3 years | '3 years | ' | ' |
Estimated taxable income | ' | ' | ' | ' | $9,000,000 | 56,900,000 |
Accumulated sales | 62,013,135 | 0 | 50,800,000 | 320,000,000 | 20,500,000 | 129,000,000 |
Taxable income | ' | ' | ' | ' | 9,500,000 | 59,800,000 |
Total accumulated taxable income target | ' | ' | 9,000,000 | 56,900,000 | ' | ' |
Probability of achieving accumulated sales | ' | ' | 24,920,000 | 154,000,000 | 50,800,000 | 320,000,000 |
Operating leases future monthly minimum payments due | ' | ' | 2,860,000 | 17,790,000 | ' | ' |
Payment of cash to third party | ' | ' | 149,700 | 945,000 | ' | ' |
Other income | ' | ' | 349,300 | 2,205,000 | ' | ' |
Subsidy income | ' | ' | 499,000 | 3,150,000 | ' | ' |
Notes Payable, Related Parties, Current | ' | $0 | $656,071 | 4,000,000 | ' | ' |
COMMITMENTS_Narrative_Details
COMMITMENTS (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |
Mar. 05, 2010 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | |
Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Xi'an TCH [Member] | Sifang TCH [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Operating Lease Term | '3 years | '3 years | ' | ' | ' |
Operating lease expiry date | 4-Mar-14 | ' | ' | ' | 18-Dec-13 |
Monthly rental payment | $18,000 | $3,800 | ' | ' | $1,900 |
Rental expense | ' | ' | 275,500 | 213,000 | ' |
Percentage increases in monthly rental payment | 8.00% | 5.00% | ' | ' | ' |
Advance rent | ' | ' | ' | ' | $11,450 |
COMMITMENTS_Future_Minimum_Ann
COMMITMENTS (Future Minimum Annual Rental Payments) (Details) (USD $) | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ' |
2014 | $278,000 |
2015 | 281,000 |
2016 | 246,000 |
2017 | 39,000 |
Total | $844,000 |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Details) (Subsequent Event [Member]) | 1 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Feb. 17, 2014 | Feb. 17, 2014 | Feb. 17, 2014 | Feb. 17, 2014 | Feb. 17, 2014 |
First Trust Loan Agreement | First Trust Loan Agreement | Second Trust Loan Agreement [Member] | Second Trust Loan Agreement [Member] | Rongfeng Loan [Member] | |
USD ($) | CNY | USD ($) | CNY | ||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Line Of Credit Facility Maximum BorrowingCapacity | $24.50 | 150 | $22.10 | 135 | ' |
Debt Instrument Interest Rate Stated Percentage | 12.00% | 12.00% | ' | ' | ' |
Debt Instrument Maturity In Months | '48 months | '48 months | ' | ' | '48 months |