Smart Powerr (CREG) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Registrant Name	CHINA RECYCLING ENERGY CORP
Entity Central Index Key	721,693
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CREG
Entity Common Stock, Shares Outstanding		83,084,035

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and equivalents	$ 53,383,712	$ 35,871,030
Accounts receivable	7,360,639	16,330
Current portion of investment in sales-type leases, net	6,665,583	6,561,984
Interest receivable on sales type leases	597,466	974,526
Prepaid expenses	160,711	951,180
Other receivables	2,320,372	1,196,684
Total current assets	70,488,483	45,571,734
NON-CURRENT ASSETS
Investment in sales-type leases, net	144,936,493	174,458,615
Long term investment	924,439	821,205
Long term deposit	60,578	60,525
Property and equipment, net	23,594	25,116
Construction in progress	145,648,634	154,340,627
Total non-current assets	291,593,738	329,706,088
TOTAL ASSETS	362,082,221	375,277,822
CURRENT LIABILITIES
Accounts payable	154,411	1,140,181
Notes payable - bank acceptances	2,617,116	163,425
Taxes payable	3,658,276	2,614,311
Accrued liabilities and other payables	3,648,446	3,250,744
Due to related parties	44,059	40,954
Deferred tax liability	1,310,267	1,035,337
Loans payable - current	8,150,680	15,729,694
Interest payable on entrusted loans	259,553	285,257
Current portion of long term payable	0	2,401,405
Total current liabilities	19,842,808	26,661,308
NONCURRENT LIABILITIES
Deferred tax liability, net	11,600,217	13,302,537
Refundable deposit from customers for systems leasing	1,652,054	1,650,597
Loans payable	42,752,225	63,114,888
Entrusted loan payable	62,483,643	62,428,501
Total noncurrent liabilities	118,488,139	140,496,523
Total liabilities	$ 138,330,947	$ 167,157,831
CONTINGENCIES AND COMMITMENTS
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 100,000,000 shares authorized, 83,084,035 and 83,009,035 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	$ 83,084	$ 83,009
Additional paid in capital	111,718,266	111,517,578
Shares to be issued	0	187,500
Statutory reserve	13,487,737	11,888,170
Accumulated other comprehensive income	16,206,173	15,987,138
Retained earnings	82,015,146	68,199,797
Total Company stockholders' equity	223,510,406	207,863,192
Noncontrolling interest	240,868	256,799
Total equity	223,751,274	208,119,991
TOTAL LIABILITIES AND EQUITY	$ 362,082,221	$ 375,277,822

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	83,084,035	83,009,035
Common Stock, Shares, Outstanding	83,084,035	83,009,035

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Sales of systems	$ 24,474,612	$ 18,946,044	$ 24,474,612	$ 18,946,044
Contingent rental income	101,089	210,547	275,427	388,154
Total revenue	24,575,701	19,156,591	24,750,039	19,334,198
Cost of sales
Cost of contingent rental income and systems	21,464,595	14,594,688	21,476,875	14,616,592
Total cost of sales	21,464,595	14,594,688	21,476,875	14,616,592
Gross profit	3,111,105	4,561,903	3,273,163	4,717,606
Interest income on sales-type leases	6,329,343	6,115,284	12,821,625	12,421,000
Total operating income	9,440,448	10,677,187	16,094,788	17,138,606
Operating expenses
General and administrative	552,339	763,228	1,256,900	1,608,203
Total operating expenses	552,339	763,228	1,256,900	1,608,203
Income from operations	8,888,109	9,913,959	14,837,888	15,530,403
Non-operating income (expenses)
Interest income	21,529	17,511	53,816	56,800
Interest expense	(1,308,979)	(949,020)	(1,802,684)	(1,861,593)
Investment income	4,014	1,955	8,487	13,268
Gain on systems repurchase from Jitie	4,594,922	0	4,594,922	0
Other income (expenses)	373,254	(416,100)	5,832	(831,491)
Total non-operating income (expenses), net	3,684,740	(1,345,654)	2,860,373	(2,623,016)
Income before income tax	12,572,849	8,568,305	17,698,261	12,907,387
Income tax expense	1,301,511	2,001,640	2,299,463	3,239,169
Income before noncontrolling interest	11,271,338	6,566,665	15,398,798	9,668,218
Less: loss attributable to noncontrolling interest	(7,779)	(22,393)	(16,117)	(43,864)
Net income attributable to China Recycling Energy Corporation	11,279,117	6,589,058	15,414,915	9,712,082
Other comprehensive items
Foreign currency translation gain (loss) attributable to China Recycling Energy Corporation	1,012,750	(61,788)	219,035	(1,474,273)
Foreign currency translation gain (loss) attributable to noncontrolling interest	1,151	90	187	(2,888)
Comprehensive income attributable to China Recycling Energy Corporation	12,291,867	6,527,270	15,633,950	8,237,809
Comprehensive loss attributable to noncontrolling interest	$ (6,628)	$ (22,303)	$ (15,930)	$ (46,752)
Basic weighted average shares outstanding (in shares)	83,084,035	61,217,625	83,078,234	61,066,042
Diluted weighted average shares outstanding (in shares)	83,084,035	61,299,932	83,078,234	61,181,229
Basic earnings per share (in dollars per share)	$ 0.14	$ 0.11	$ 0.19	$ 0.16
Diluted earnings per share (in dollars per share)	$ 0.14	$ 0.11	$ 0.19	$ 0.16

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Income including noncontrolling interest	$ 15,398,798	$ 9,668,218
Adjustments to reconcile income including noncontrolling interest to net cash provided by (used in) operating activities:
Changes in sales type leases receivables	0	(18,946,044)
Shares to be issued for cost of Yida project	0	14,491,450
Depreciation and amortization	21,705	16,211
Stock option expense	13,264	41,680
Investment income	(8,487)	(13,268)
Changes in deferred tax	(1,436,483)	1,471,536
Changes in assets and liabilities:
Interest receivable on sales type leases	376,983	(220,343)
Collection of principal on sales type leases	47,907,042	5,304,071
Prepaid expenses	789,347	729,902
Accounts receivable	(7,326,079)	9,895
Other receivables	(1,213,615)	26,770
Construction in progress	(9,595,562)	(57,679,140)
Accounts payable	1,463,130	8,278,300
Taxes payable	1,039,073	132,582
Interest payable on entrusted loans	(25,891)	(27,528)
Accrued liabilities and other payables	394,477	156,908
Net cash provided by (used in) operating activities	47,797,702	(36,558,800)
CASH FLOWS FROM INVESTING ACTIVITIES:
Changes of restricted cash	0	(5,475,646)
Acquisition of property and equipment	(20,164)	(556)
Net cash used in investing activities	(20,164)	(5,476,202)
CASH FLOWS FROM FINANCING ACTIVITIES:
Notes receivable	0	653,808
Proceeds from loans	0	41,860,085
Repayment of loans	(27,941,848)	(10,379,209)
Long term payable	(2,397,565)	(703,938)
Advance from related parties	3,263	9,509,112
Net cash provided by (used in) financing activities	(30,336,150)	40,939,858
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS	71,294	9,256
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	17,512,682	(1,085,888)
CASH AND EQUIVALENTS, BEGINNING OF PERIOD	35,871,030	7,701,530
CASH AND EQUIVALENTS, END OF PERIOD	53,383,712	6,615,642
Supplemental cash flow data:
Income tax paid	2,920,356	1,632,341
Interest paid	$ 8,134,936	$ 6,986,923

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2015
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, provides energy saving solutions and services, including selling and leasing energy saving systems and equipment to customers, in the Peoples Republic of China (“PRC”). 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 was Inner Mongolia Erdos TCH Energy Saving Development Co., Ltd. with a term of twenty (20) years. Total investment for the project was estimated at $ 79 500 17.55 120 7 93 80 20 60 40 7 1.29 8 1.29 20 226,000 18 27 Pucheng Biomass Power Generation Projects On June 29, 2010, Xi’an TCH entered into a Biomass Power Generation Project Lease Agreement with PuchengXinHeng Yuan Biomass Power Generation Co., Ltd. (“Pucheng”), a limited liability company incorporated in China. Under this lease agreement, Xi’an TCH leased a set of 12 279,400 1,900,000 On September 11, 2013, Xi’an TCH entered into a Biomass Power Generation Asset Transfer Agreement (the “Pucheng Transfer Agreement”) with Pucheng. The Pucheng Transfer Agreement provided for the sale by Pucheng to Xi’an TCH of a set of 12 100 16.48 8,766,547 1.87 12 3.8 0.63 Zhongbao Waste Heat Power Generation Projects On September 30, 2010, Xi’an TCH delivered to ZhongbaoBinhai Nickel Co., Ltd. (“Zhongbao”) a 7 80,000 60 40 100 60 9.76 1.5 243,902 Shenqiu Yuneng Biomass Power Generation Projects On May 25, 2011, Xi’an TCH entered into a Letter of Intent with ShenqiuYuNeng Thermal Power Co., Ltd. (“Shenqiu”) to reconstruct and transform a Thermal Power Generation System owned by Shenqiu into a 75T/H BMPG System for $ 3.57 22.5 12 10,937,500 70 12 286,000 1,800,000 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 “Shenqiu Phase II Project”). The technical reformation involved the construction of another 12MW BMPG 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 68 12 239,000 1.5 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 3 15 28.6 180 0.19 1.2 0.18 1.1 0.16 1.0 0.15 0.9 Jitie Power Generation Projects In May 2013, Xi’an TCH signed a contract with Sinosteel Jilin Ferroalloys Co., Ltd. (“Jitie”) to build furnace gas WHPG 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 installed a 7.5 3 10.5 9.71 60 300,000 1.8 On June 18, 2015, Xi’an TCH entered into a WHPG system Repurchase Agreement with Jitie. Under the Repurchase Agreement, Jitie was to repurchase the Jitie Project from Xi’an TCH and pay outstanding energy saving service fees of RMB 1.8 million (approximately $294,599) to Xi’an TCH within five working days from the execution of the Repurchase Agreement on June 18, 2015. The Jitie Project was to be transferred to Jitie for a total price of RMB 90 million (approximately $14.73 million).As of the report date, Xi’an TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at date of transfer was $13.10 million. The Company recorded $1.62 million gain from this transaction. Yida Coke Oven Gas Power Generation Projects On June 28, 2014, Xi’an TCH entered into an Asset Transfer Agreement (the “Transfer Agreement”) with Qitaihe City BoliYida Coal Selection Co., Ltd. (“Yida”), a limited liability company incorporated in China. The Transfer Agreement provided for the sale to Xi’an TCH of a 15 15 115 18.69 2.27 8,233,779 15 8,233,779 14.49 1.76 On June 28, 2014, Xi’an TCH also entered into a Coke Oven Gas Power Generation Project (“WGPG”) Lease Agreement (the “Lease Agreement”) with Yida. Under the Lease Agreement, Xi'an TCH leased the Transfer Asset to Yida for RMB 3 0.49 3 0.49 The Fund Management Company On June 25, 2013, Xi’an TCH and HongyuanHuifu Venture Capital Co. Ltd. (“HongyuanHuifu”) jointly established Hongyuan Recycling Energy Investment Management Beijing Co., Ltd. (the “Fund Management Company”) with registered capital of RMB 10 4 650,000 40 80 20 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 5 830,000 460 75 280 46.67 100 16.67 75 12.5 July 18, 2019 460 76.66 90 Chengli Waste Heat Power Generation 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 4.85 27 4.37 90 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 WHPG 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 WHPG 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 has been completed in the second quarter of 2015 and the project is currently under commissioning tests which we expect to be completed in the next couple months. 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 WHPG system will be at least 7,200 hours per year. On July 22, 2013, Zhonghong entered into an 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 WHPG 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 WHPG 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 33.34 Tianyu Waste Heat Power Generation Project On July 19, 2013, Zhonghong entered into a Cooperative Agreement (the “Tianyu Agreement”) for Energy Management of 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 for each of Xuzhou Tian'an and Xuzhou Huayu. 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 term of the Tianyu Agreement is twenty (20) years. The construction of the Tianyu Project is anticipated to be completed between the end of 2015 and the middle of 2016. Tianyu will provide the land for the CDQ systems and CDQ WHPG 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 an EPC (Engineering, Procurement and Construction) General Contractor Agreement for the Jiangsu Tianyu Energy and Chemical Group Co., Ltd. CDQ Power Generation Project (the “Tianyu Project”) with Xi’an Huaxin New Energy Co., Ltd. (“Huaxin”). Zhonghong, as the owner of the Tianyu Project, contracted engineering, procurement and construction services for two CDQ systems and two 25 MW CDQ WHPG systems for Tianyu to Huaxin. Huaxin shall provide construction, equipment procurement, transportation, installation and adjustment, test run, construction engineering management and other necessary services to complete the Tianyu Project and ensure the CDQ system and CDQ WHPG system for Tianyu meet the inspection and acceptance requirements and work normally. The Tianyu 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 400 66.68 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 “Zhongtai Agreement”) with Xuzhou Zhongtai Energy Technology Co., Ltd. (“Zhongtai”), a limited liability company incorporated in Jiangsu Province, China. Pursuant to the Zhongtai Agreement, Xi’an TCH will design, build and maintain a 150 ton per hour CDQ system and a 25 MW CDQ WHPG 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 eighteen (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 WHPG station passes the required 72 hour test run. The term of payment is for twenty (20) years. For the first ten (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 ten (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 ($0.16). 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 Zhongtai 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 five (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 five (5) years minus the years in which the system has already operated); or 2) if it is more than five (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 ten years). 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. (the “Rongfeng Agreement”), a limited liability company incorporated in Hebei Province, China. Pursuant to the Rongfeng Agreement, Xi’an TCH will design, build and maintain a CDQ system and a CDQ WHPG system and sell the power to Rongfeng. The construction period of the Project is expected to be eighteen (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 WHPG station passes the required 72 hour test run. The term of payment is for twenty years. For the first ten 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 ten (10) years of the term, Rongfeng shall pay an energy saving service fee at RMB 0.432 ($0.071) per kWh (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 Rongfeng 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 five years (including five 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 (five years minus the years of which the system has already operated); 2) if it is more than five 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 ten years). Baoliyuan CDQ Power Generation Energy Management Cooperative Agreement On March 26, 2014, Xi’an TCH entered into a CDQ Waste Heat Recycling Project Energy Management Cooperative Agreement with Tangshan Baoliyuan Coking Co., Ltd. (“Baoliyuan”), a limited liability company incorporated in Hebei Province, China. Pursuant to the Agreement, Xi’an TCH was to design, build and maintain a CDQ system and a CDQ WHPG system and sell the power to Baoliyuan (the “CDQ Project”) and Xi’an TCH will also build a high scale waste water treatment system for Baoliyuan and charge monthly payments for two years (the “ Waste Water Treatment Project”). The construction period of the CDQ Project was expected to be fifteen months from the effective date of the Agreement. Baoliyuan was to pay an energy saving fee from the date when the WHPG station passed the required 72 hour test run. The term of payment was for twenty years and Baoliyuan was to pay an energy saving fee at RMB 0.7 ($0.114) per kilowatt hour (including tax) for the power generated from the system, from which Xi’an TCH shall take 92.86% and Baoliyuan was to take 7.14% as parties to share the energy saving benefits. During the term of the contract the energy saving fee was to be adjusted at the same percentage as the change of local grid electricity price. Baoliyuan was to provide guarantees to ensure it would fulfill its obligations under the Agreement. Upon the completion of the term, Xi’an TCH was to transfer the systems to Baoliyuan at RMB 1. Baoliyuan was to provide waste heat to the systems for no less than 8,000 hours per year and coking production was to reach 80% of its capacity. If these requirements were not met, the energy saving fee was to be calculated according to such hours and capacity. If Baoliyuan wanted to terminate the Agreement early, it was to 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 was less than five years (including five years) into the term when Baoliyuan requested termination, Baoliyuan was to pay Xi’an TCH’s total investment amount plus Xi’an TCH’s average annual investment return times (five years minus the years of which the system had already operated); 2) if it was more than five years into the term when Baoliyuan requested the termination, Baoliyuan was to pay Xi’an TCH’s total investment amount minus total amortization cost (the amortization period is twenty years). From the first month of the completion of Waste Water Treatment Project, Baoliyuan was to pay a fixed monthly fee for the waste water treatment system at RMB 1.05 171,010 940,000 153,094 The Baoliyuan project was cancelled in May 2015 because the project requires mountain blasting and leveling and Baoliyuan could not obtain all the necessary permits for the construction from the local government due to the government’s concern for the environment protection. Summary of June 30, 2015 Sales-Types Leases On September 24, 2014, Xi’an TCH entered into an Assets Repurchase Agreement for the TRT system with Capital Steel Group Zhangzhi Iron & Steel Co., Ltd. (“Zhangzhi”). Under the Repurchase Agreement, Zhangzhi purchased the TRT System from Xi’an TCH and also repaid the outstanding energy saving service fees owed to Xi'an TCH. The repurchase price for the TRT System was RMB 35 5.69 1.1 179,000 4.78 0.98 On December 22, 2014, Xi’an TCH entered into a WHPG System Repurchase Agreement with Zhonggang Binhai Enterprise Ltd. (“Zhonggang”). Under the Repurchase Agreement, Zhonggang was to purchase the WHPG System from Xi’an TCH and repay the outstanding energy saving service fees owed to Xi'an TCH. The purchase price for the WHPG System was RMB 60 9.76 1.5 243,902 8.04 1.76 On May 29, 2015, Xi’an TCH entered into a Repurchase Agreement for the Recycling Economy Project with Datong. Under the Repurchase Agreement, Datong was to repurchase the Systems from Xi’an TCH and pay outstanding energy saving service fees of RMB 1.2 million (approximately $193,548) to Xi’an TCH within five working days from the execution of the Repurchase Agreement. The Systems were to be transferred to Datong for a total price of RMB 250 million (approximately $40.32 million) with RMB 100 million for two BPRT systems and RMB 150 million (approximately $24.54 million) for one WGPG system. Datong was to pay RMB 150 million within 5 working days from the execution of the Repurchase Agreement and pay RMB 100 million within 15 working days from the execution of the Repurchase Agreement. The ownership of the Systems was to be transferred to Datong when it timely paid in full the entire Repurchase Price and the parties had completed the on-site assets transfer process and confirmed the actual Systems’ transfer. As of June 30, 2015, Xi’an TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at date of transfer was $13.37 million. The Company recorded $2.98 million gain from two BPRT systems as non-operating income and $3.02 million gain from the WGPG system as gross profit from the sale. On June 18, 2015, Xi’an TCH entered into a WHPG system Repurchase Agreement with Jitie. Under the Repurchase Agreement, Jitie was to repurchase the Jitie Project from Xi’an TCH and pay outstanding energy saving service fees of RMB 1.8 million (approximately $294,599) to Xi’an TCH within five working days from the execution of the Repurchase Agreement on June 18, 2015. The Jitie Project was to be transferred to Jitie for a total price of RMB 90 million (approximately $14.73 million), and Jitie was to pay RMB 45 million within five working days from the execution of the Repurchase Agreement and pay another RMB 45 million within 15 working days from the execution of the Repurchase Agreement. The ownership of the Jitie Project was to be transferred to Jitie when it timely paid in full the Repurchase Price and the parties had completed the on-site assets transfer process and confirmed the actual Jitie Project transfer. As of June 30, 2015, Xi’an TCH received the first RMB 45 million (approximately $7.36 million) and RMB 1.8 million (approximately $294,599) energy saving service fees. On July 6, 2015, Xi’an TCH received the second RMB 45 million (approximately $7.36 million). As of June 30, 2015, Xi’an TCH had received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at date of transfer was $13.10 million. The Company recorded $1.62 million gain from this transaction. As of June 30, 2015, Xi’an TCH leases the following systems: (i) BMPG systems to Pucheng Phase I and II (15 and 11 year terms, respectively); (ii) BMPG systems to Shenqiu Phase I (11 year term); (iii) Shenqiu Phase II (9.5 year term); and (iv) WGPG systems to Yida (15 year term).

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited financial statements included herein were prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) that are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s 2014 audited financial statements included in the Company’s Annual Report on Form 10-K. The results for the six and three months ended June 30, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015. 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 90 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 840 , “Lease ,” 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 June 30, 2015 and December 31, 2014, the Company had accounts receivable of $ 7,360,639 nd 16,330 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-lived Assets In accordance with FASB ASC Topic 360, “Property, Plant, and Equipment 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 and sales tax and additions for contingent rental income. Noncontrolling Interests The Company follows FASB ASC Topic 810, “Consolidation,” 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. 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. FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” “Financial Instruments,” · 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,” “Derivatives and Hedging”. The following are the considerations with respect to disclosures of FV of long-term debt obligations: As of June 30, 2015, the Company’s long-term debt obligations consisted of the following: (i) various long-term bank loans and Zhongrong International Trust Co., Ltd. (“ZRIT”) trust loan payable of $ 50.90 62.48 67.41 62.43 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 the Company’s long-term bank loans, ZRIT trust loan and Zhonghong entrusted loans 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 June 30, 2015 and December 31, 2014, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with FASB ASC Topic 718 “Compensation—Stock Compensation,” Equity.” Basic and Diluted Earnings per Share The Company presents net income (loss) per share (“EPS”) in accordance with 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 for the six and three months ended June 30, 2015 and 2014: Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Net income $ 15,414,915 $ 9,712,082 $ 11,279,117 $ 6,589,058 Weighted average shares outstanding – basic 83,078,234 61,066,042 83,084,035 61,217,625 Effect of dilutive securities: Options granted - 115,187 - 82,307 Weighted average shares outstanding – diluted 83,078,234 61,181,229 83,084,035 61,299,932 Earnings per share – basic $ 0.19 $ 0.16 $ 0.14 $ 0.11 Earnings per share – diluted $ 0.19 $ 0.16 $ 0.14 $ 0.11 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 FASB ASC Topic 220, “Comprehensive Income.” Segment Reporting FASB ASC Topic 280, “Segment Reporting,” Reclassifications Certain prior period amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications had no effect on the net income or stockholders’ equity. New Accounting Pronouncements In August 2014, the FASB issued Presentation of Financial Statements — Going Concern. This standard requires management to evaluate for each annual and interim reporting period whether it is probable that the reporting entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued. If the entity is in such a position, the standard provides for certain disclosures depending on whether or not the entity will be able to successfully mitigate its going concern status. This guidance is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows. The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in FASB ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis”, which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows.

INVESTMENT IN SALES-TYPE LEASES

INVESTMENT IN SALES-TYPE LEASES, NET	6 Months Ended
	Jun. 30, 2015
Investments [Abstract]
INVESTMENT IN SALES-TYPE LEASES, NET	3. INVESTMENT IN SALES-TYPE LEASES, NET Under sales-type leases, Xi’an TCH leases the following systems: (i) BMPG systems to Pucheng Phase I and II (15 and 11 year terms, respectively); (ii) BMPG systems to Shenqiu Phase I (11 year term); (iii) Shenqiu Phase II (9.5 year term); and (iv) WGPG systems to Yida (15 year term). In addition, as of June 30, 2015, Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five systems) for a term of twenty years. The components of the net investment in sales-type leases as of June 30, 2015 and December 31, 2014 are as follows: 2015 2014 Total future minimum lease payments receivable $ 428,978,016 $ 583,820,886 Less: executory cost (102,370,458) (134,771,919) Less: unearned interest income (175,005,482) (268,028,368) Investment in sales-type leases, net 151,602,076 181,020,599 Current portion 6,665,583 6,561,984 Noncurrent portion $ 144,936,493 $ 174,458,615 As of June 30, 2015, the future minimum rentals to be received on non-cancelable sales-type leases by years are as follows: 2015 $ 35,772,703 2016 34,545,930 2017 34,545,930 2018 34,545,930 2019 34,545,930 Thereafter 255,021,593 Total $ 428,978,016

PREPAID EXPENSES

PREPAID EXPENSES	6 Months Ended
	Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES	4. PREPAID EXPENSES Prepaid expenses mainly consisted of prepayment for office rental and decorations, and consulting fees for the Company’s RMB 460 2 9.2 2 0.13 0.88

OTHER RECEIVABLES

OTHER RECEIVABLES	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
OTHER RECEIVABLES	5. OTHER RECEIVABLES As of June 30, 2015, other receivables mainly consisted of a guarantee deposit of $ 1.47 0.04 0.50 0.56 0.04 0.1

LONG TERM INVESTMENT

LONG TERM INVESTMENT	6 Months Ended
	Jun. 30, 2015
Long-term Investments [Abstract]
LONG TERM INVESTMENT	6. LONG TERM INVESTMENT On June 25, 2013 Xi’an TCH with HongyuanHuifu Venture Capital Co. Ltd (“HongyuanHuifu”) jointly established Hongyuan Recycling Energy Investment Management Beijing Co., Ltd (the "Fund Management Company") with registered capital of RMB 10 1.6 4 0.65 40 80 20 102,255 77,091 48,362 23,548 100 91.7 1.6 On July 18, 2013, 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 0.83 280 46.67 100 16.67 75 12.5 460 75.0 16.3 75 12.2

CONSTRUCTION IN PROGRESS

CONSTRUCTION IN PROGRESS	6 Months Ended
	Jun. 30, 2015
Receivables, Long-Term Contracts Or Programs [Abstract]
CONSTRUCTION IN PROGRESS	7. CONSTRUCTION IN PROGRESS Construction in progress was for constructing power generation systems. As of June 30, 2015 and December 31, 2014 the Company’s construction in progress included: 2015 2014 Shanxi Datong Coal Group on 15MW WGPG $ - $ 18,431,457 Xuzhou Zhongtai 28,720,801 26,573,828 Tangshan Rongfeng 29,823,821 28,373,387 Xuzhou Huayu 30,068,151 28,510,731 Xuzhou Tian’an 27,150,590 25,697,884 Boxing County Chengli 29,885,271 26,753,340 Total $ 145,648,634 $ 154,340,627 As of June 30, 2015, the Company was committed to pay an additional 1) $ 7.79 2.42 8.18 9.81 8.18

TAXES PAYABLE

TAXES PAYABLE	6 Months Ended
	Jun. 30, 2015
Taxes Payable [Abstract]
TAXES PAYABLE	8. TAXES PAYABLE Taxes payable consisted of the following as of June 30, 2015 and December 31, 2014: 2015 2014 Income $ 2,942,736 $ 1,872,995 Business 283,765 306,848 VAT arising from transfer WGPG to Shenmu 392,567 392,221 Other 39,208 42,247 Total $ 3,658,276 $ 2,614,311

ACCRUED LIABILITIES AND OTHER P

ACCRUED LIABILITIES AND OTHER PAYABLES	6 Months Ended
	Jun. 30, 2015
Accounts Payable and Accrued Liabilities, Current [Abstract]
ACCRUED LIABILITIES AND OTHER PAYABLES	9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following as of June 30, 2015 and December 31, 2014: 2015 2014 Employee training, labor union expenditure and social insurance payable $ 694,582 $ 693,969 Consulting, auditing, and legal expenses 484,984 537,973 Accrued payroll and welfare 304,768 304,512 Accrued interest expense 1,814,785 1,439,770 Other 349,327 274,520 Total $ 3,648,446 $ 3,250,744

DEFERRED TAX LIABILITY, NET

DEFERRED TAX LIABILITY, NET	6 Months Ended
	Jun. 30, 2015
Deferred Tax [Abstract]
DEFERRED TAX LIABILITY, NET	10. DEFERRED TAX LIABILITY, NET Deferred tax asset resulted from accrued employee social insurance that can be deducted for tax purposes in the future, and the 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. 2015 2014 Deferred tax asset — current (accrual of employee social insurance) $ 89,193 $ 89,114 Deferred tax liability — current (net investment in sales-type leases) (1,399,460) (1,124,451) Deferred tax liability, net of deferred tax asset – current $ (1,310,267) $ (1,035,337) Deferred tax asset — noncurrent (depreciation of fixed assets) $ 24,633,906 $ 30,310,142 Deferred tax liability — noncurrent (net investment in sales-type leases) (36,234,123) (43,612,679) Deferred tax liability, net of deferred tax asset – noncurrent $ (11,600,217) $ (13,302,537)

LOANS PAYABLE

LOANS PAYABLE	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
LOANS PAYABLE	11. LOANS PAYABLE Entrusted Loan Payable The HYREF Fund (Beijing Hongyuan Recycling Energy Investment Center, LLP) established in July 2013 with total fund size of RMB 460 75.0 3 0.5 457 74.5 457 74.5 0.1 27 The loan agreement provides, Zhonghong shall also maintain a 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: ⋅ ⋅ ⋅ The term of this loan is for sixty months from July 31, 2013 to July 30, 2018. On August 6, 2016, Zhonghong shall repay principal in the amount of RMB 280 45.54 100 16.27 77 12.52 12.5 74.75 12.27 12.27 258,740 4.42 688,258 Bank Loans - Industrial Bank On November 8, 2011, Xi’an TCH entered into another loan agreement with the same Industrial Bank for energy saving and emission reduction projects, whereby the Lender agreed to loan $ 21.04 130 4 115 7.36 1,618,463 10 On October 9, 2013, 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 $ 16.40 100 120 615,067 3.75 1,025,111 6.25 1,230,133 7.5 Bank Loan – Bank of Xi’an On May 28, 2014, Xi’an TCH entered into a loan agreement with Bank of Xi’an, whereby Bank of Xi’an agreed to loan $ 6.50 40 May 29, 2015 0.65 155,280 950,000 Bank Loan – Bank of Chongqing On April 11, 2014, Xi’an TCH entered into a loan agreement with Bank of Chongqing - Xi’an Branch, whereby Bank of Chongqing agreed to loan $ 8.13 50 3 April 10, 2017 9.225 0.81 5 th 7.32 45 155,280 950,000 4.50 Trust Loan - Zhongrong International Trust - Xuzhou Zhongtai and Tangshan Rongfeng On February 17, 2014, Xi’an TCH entered into a trust loan agreement with Zhongrong International Trust Co., Ltd (“ZRIT”), for Xi’an TCH to borrow RMB 150 24.5 24.47 4.95 19.52 The Zhongtai Loan has a term of four years. The annual interest rate for the first twenty-four months of the loan is 12%. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four 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 24-month anniversary date of the establishment of Trust Plan No. 1. Under the terms of the loan, Xi’an TCH should make the first, second, and all remaining repayment of the principal which is 30 30 40 th th On February 17, 2014, Xi’an TCH entered into another trust loan agreement with ZRIT, for Xi’an TCH to borrow RMB 135 22.1 21.93 3.20 18.74 The Rongfeng Loan has a term of four years. The annual interest rate for the first twenty-four months of the loan is 12%. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four months and Xi'an TCH has the right to prepay the Rongfeng Loan before maturity 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 24-month anniversary date of the establishment of Trust Plan No. 2. Under the terms of the loan, Xi’an TCH should make the first, second, and all remaining repayment of the principal which is 30 30 40 th th For the six months ended June 30, 2015, the Company capitalized $ 2.77 2015 8,968,529 2016 63,401,270 2017 32,995,289 2018 8,021,460 2019 - Total $ 113,386,548

LONG TERM PAYABLE - FINANCING A

LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION	6 Months Ended
	Jun. 30, 2015
Leases [Abstract]
LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION	12. LONG TERM PAYABLE – FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION 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 WHPG systems and (ii) four furnaces and ancillary apparatus ((i) and (ii) collectively, the “Assets”) to Cinda Financial for $ 6.72 42.50 8.15 51.54 6.65 15 7.6475 676 4,250 412,855 2.59 In addition to the leasing fees, Xi’an TCH prepaid a one-time non-refundable leasing service charge of $ 405,696 2.550 338,079 2.13 0 41,680 255,000 0 20,955 As of December 31, 2014, the prepaid leasing service fee was fully amortized as a result of the Early Repayment Agreement entered by Xi’an TCH and Cinda Financial on December 22, 2014. Under the Repayment Agreement, Xi’an TCH paid the principal and interest in the amount of RMB 2.55 0.42 12.14 1.97 2,125,000 0.35

REFUNDABLE DEPOSIT FROM CUSTOME

REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING	6 Months Ended
	Jun. 30, 2015
Leases [Abstract]
REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING	13. REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING Refundable deposit from customers for systems leasing was $ 1,652,054 1,650,597

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	14. RELATED PARTY TRANSACTIONS On March 1, 2014, Xi’an TCH entered a loan agreement with Mr. Guohua Ku, a major shareholder and the Company's Chairman and CEO, pursuant to which Mr. Ku will loan the Company, from time to time, up to RMB 80 0 44,059 0 40,954 On August 27, 2014, the Company entered into a Share Purchase Agreement (the “Agreement”) with Mr. Guohua Ku. Pursuant to the Agreement, the Company issued to Mr. Ku, 13,829,074 15 1.37 12 6.91 74.05 42.85 1.49 180

NONCONTROLLING INTEREST

NONCONTROLLING INTEREST	6 Months Ended
	Jun. 30, 2015
Noncontrolling Interest [Abstract]
NONCONTROLLING INTEREST	15. NONCONTROLLING INTEREST On July 15, 2013, Xi’an TCH and HYREF Fund jointly established Xi’an Zhonghong New Energy Technology (“Zhonghong”) with registered capital of RMB 30 4.88 27 4.37 90 10 In addition, the HYREF Fund 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 11, which resulted in an additional indirect ownership of Xi’an TCH in Zhonghong of 1.7%; accordingly, the ultimate non-controlling interest (HYREF Fund) in Zhonghong became 8.3 16,117 43,864 7,779 22,393

INCOME TAX

INCOME TAX	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAX	16. 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 2015 and 2014 was 25 15 25 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 US parent company, China Recycling Energy Corporation, is taxed in the US and, as of June 30, 2015, had net operating loss (“NOL”) carry forwards for income taxes of $ 14.10 100 Six Months Three Months 2015 2014 2015 2014 U.S. statutory rates 34.0 % 34.0 % 34.0 % 34.0 % Tax rate difference – current provision (9.3) % (6.1) % (9.1) % (4.3) % Effective tax holiday (8.2) % (8.0) % (8.7) % (8.5) % Other (2.3) % 0.5 % (3.3) % 0.7 % Prior periods income tax adjustment per income tax return filed (2.2) % 2.9 % (3.1) % - % Effect of tax rate change on deferred tax items - % - % - % - % Valuation allowance on US NOL 1.0 % 1.8 % 0.6 % 1.5 % Tax per financial statements 13.0 % 25.1 % 10.4 % 23.4 % Six Months Three Months 2015 2014 2015 2014 Income tax expense – current $ 3,735,946 $ 1,767,633 $ 2,863,502 $ 878,386 Income tax expense (benefit) - deferred (1,436,483) 1,471,536 (1,561,991) 1,123,254 Total income tax expense $ 2,299,463 $ 3,239,169 $ 1,301,511 $ 2,001,640

STOCK-BASED COMPENSATION PLAN

STOCK-BASED COMPENSATION PLAN	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION PLAN	17. STOCK-BASED COMPENSATION PLAN On August 13, 2010, the Company granted 2,200,000 3.05 The Company did not meet the financial goals of 2012 and 2011; accordingly, the second and third tranches (two thirds of the total number of 2,200,000 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 3.54 0 Number of Average Weighted Outstanding at January 1, 2015 733,333 $ 3.05 0.62 Exercisable at January 1, 2015 733,333 3.05 0.62 Granted - - - Exercised - - - Forfeited - - - Outstanding at June 30, 2015 733,333 3.05 0.12 Exercisable at June 30, 2015 733,333 $ 3.05 0.12 The Company recorded no compensation expense for stock options to employees during the six months ended June 30, 2015 and 2014, respectively. On June 19, 2015, the stockholders of the Company approved the China Recycling Energy Corporation Omnibus Equity Plan (the “Equity Plan”) at its annual meeting. The total aggregate shares of common stock authorized for issuance during the term of the Equity Plan is limited to 12,462,605 Options to Independent Directors On October 30, 2009, the Company granted stock options for 130,000 1.85 100 3.54 0 183,000 On January 20, 2010, the Company granted stock options for 40,000 4.68 100 3.54 0 142,000 On October 7, 2010, the 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 40,000 87 3.54 0 83,000 On March 31, 2015, the Board appointed Mr. Cangsang Huang as a new member of the Board to fill the vacancy on the Board until his successor has been duly elected and qualified. In connection with the appointment, the Board of Directors of the Company authorized the Company to provide Mr. Huang with (i) compensation in the amount of $ 2,000 40,000 0.001 82 1.37 0 26,528 Number of Average Weighted Outstanding at January 1, 2015 80,000 $ 3.83 0.31 Exercisable at January 1, 2015 80,000 3.83 0.31 Granted 40,000 - - Exercised - - - Forfeited 40,000 - - Outstanding at June 30, 2015 80,000 2.00 2.64 Exercisable at June 30, 2015 40,000 $ 2.98 0.52 Shares issued to a consulting firm On October 16, 2013, the Company entered a one-year financing consulting service agreement with a consulting firm. The Company will pay 75,000 187,500 Shares issued to CEO On August 27, 2014, the Company entered into a Share Purchase Agreement with Mr. Guohua Ku, a Chinese citizen, major shareholder, Chairman and Chief Executive Officer of this Company. Pursuant to the Agreement, the Company issued to Mr. Ku, 13,829,074 1.37 12 6.91 74.05 42.85 1.49 180

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Contingencies [Abstract]
CONTINGENCIES	18. 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 (6) months. As of June 30, 2015 and December 31, 2014, Xi’an TCH had outstanding notes receivable of $ 0

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	19. COMMITMENTS Lease Commitment On March 4, 2014, Xi’an TCH’s office lease expired and Xi’an TCH renewed this lease for an additional two years; the monthly rental payment is $ 20,140 December 31, 2015 12,110 200,017 223,425 100,223 116,994 2015 $ 254,868 Total $ 254,868 Construction Commitment Refer to Note 1 for additional details related to lease commitments with Chengli Boxing, Tianyu (and its subsidiaries Xuzhou Tian’an and Xuzhou Huayu), Rongfeng, and Zhongtai, and Note 7 for commitment on construction in progress.

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited financial statements included herein were prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) that are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s 2014 audited financial statements included in the Company’s Annual Report on Form 10-K. The results for the six and three months ended June 30, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015.
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 90
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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 840 , “Lease ,” 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 June 30, 2015 and December 31, 2014, the Company had accounts receivable of $ 7,360,639 nd 16,330
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-lived Assets In accordance with FASB ASC Topic 360, “Property, Plant, and Equipment
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 and sales tax and additions for contingent rental income.
Noncontrolling Interests	Noncontrolling Interests The Company follows FASB ASC Topic 810, “Consolidation,” 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.
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. FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” “Financial Instruments,” · 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,” “Derivatives and Hedging”. The following are the considerations with respect to disclosures of FV of long-term debt obligations: As of June 30, 2015, the Company’s long-term debt obligations consisted of the following: (i) various long-term bank loans and Zhongrong International Trust Co., Ltd. (“ZRIT”) trust loan payable of $ 50.90 62.48 67.41 62.43 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 the Company’s long-term bank loans, ZRIT trust loan and Zhonghong entrusted loans 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 June 30, 2015 and December 31, 2014, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV.
Stock Based Compensation	Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with FASB ASC Topic 718 “Compensation—Stock Compensation,” Equity.”
Basic and Diluted Earnings per Share	Basic and Diluted Earnings per Share The Company presents net income (loss) per share (“EPS”) in accordance with 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 for the six and three months ended June 30, 2015 and 2014: Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Net income $ 15,414,915 $ 9,712,082 $ 11,279,117 $ 6,589,058 Weighted average shares outstanding – basic 83,078,234 61,066,042 83,084,035 61,217,625 Effect of dilutive securities: Options granted - 115,187 - 82,307 Weighted average shares outstanding – diluted 83,078,234 61,181,229 83,084,035 61,299,932 Earnings per share – basic $ 0.19 $ 0.16 $ 0.14 $ 0.11 Earnings per share – diluted $ 0.19 $ 0.16 $ 0.14 $ 0.11
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 FASB ASC Topic 220, “Comprehensive Income.”
Segment Reporting	Segment Reporting FASB ASC Topic 280, “Segment Reporting,”
Reclassification	Reclassifications Certain prior period amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications had no effect on the net income or stockholders’ equity.
New Accounting Pronouncements	New Accounting Pronouncements In August 2014, the FASB issued Presentation of Financial Statements — Going Concern. This standard requires management to evaluate for each annual and interim reporting period whether it is probable that the reporting entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued. If the entity is in such a position, the standard provides for certain disclosures depending on whether or not the entity will be able to successfully mitigate its going concern status. This guidance is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows. The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in FASB ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) - Amendments to the Consolidation Analysis”, which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
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 EPS for the six and three months ended June 30, 2015 and 2014: Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Net income $ 15,414,915 $ 9,712,082 $ 11,279,117 $ 6,589,058 Weighted average shares outstanding – basic 83,078,234 61,066,042 83,084,035 61,217,625 Effect of dilutive securities: Options granted - 115,187 - 82,307 Weighted average shares outstanding – diluted 83,078,234 61,181,229 83,084,035 61,299,932 Earnings per share – basic $ 0.19 $ 0.16 $ 0.14 $ 0.11 Earnings per share – diluted $ 0.19 $ 0.16 $ 0.14 $ 0.11

INVESTMENT IN SALES-TYPE LEAS27

INVESTMENT IN SALES-TYPE LEASES, NET (Tables)	6 Months Ended
	Jun. 30, 2015
Investments [Abstract]
Components of Net Investment in Sales-Type Leases	The components of the net investment in sales-type leases as of June 30, 2015 and December 31, 2014 are as follows: 2015 2014 Total future minimum lease payments receivable $ 428,978,016 $ 583,820,886 Less: executory cost (102,370,458) (134,771,919) Less: unearned interest income (175,005,482) (268,028,368) Investment in sales-type leases, net 151,602,076 181,020,599 Current portion 6,665,583 6,561,984 Noncurrent portion $ 144,936,493 $ 174,458,615
Future Minimum Rentals to be Received on Non-Cancelable Sales-Type Leases by Years	As of June 30, 2015, the future minimum rentals to be received on non-cancelable sales-type leases by years are as follows: 2015 $ 35,772,703 2016 34,545,930 2017 34,545,930 2018 34,545,930 2019 34,545,930 Thereafter 255,021,593 Total $ 428,978,016

CONSTRUCTION IN PROGRESS (Table

CONSTRUCTION IN PROGRESS (Tables)	6 Months Ended
	Jun. 30, 2015
Receivables, Long-Term Contracts Or Programs [Abstract]
Schedule of Construction in progress	Construction in progress was for constructing power generation systems. As of June 30, 2015 and December 31, 2014 the Company’s construction in progress included: 2015 2014 Shanxi Datong Coal Group on 15MW WGPG $ - $ 18,431,457 Xuzhou Zhongtai 28,720,801 26,573,828 Tangshan Rongfeng 29,823,821 28,373,387 Xuzhou Huayu 30,068,151 28,510,731 Xuzhou Tian’an 27,150,590 25,697,884 Boxing County Chengli 29,885,271 26,753,340 Total $ 145,648,634 $ 154,340,627

TAXES PAYABLE (Tables)

TAXES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Taxes Payable [Abstract]
Schedule of Taxes Payable	Taxes payable consisted of the following as of June 30, 2015 and December 31, 2014: 2015 2014 Income $ 2,942,736 $ 1,872,995 Business 283,765 306,848 VAT arising from transfer WGPG to Shenmu 392,567 392,221 Other 39,208 42,247 Total $ 3,658,276 $ 2,614,311

ACCRUED LIABILITIES AND OTHER30

ACCRUED LIABILITIES AND OTHER PAYABLES (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued Liabilities and Other Payables	Accrued liabilities and other payables consisted of the following as of June 30, 2015 and December 31, 2014: 2015 2014 Employee training, labor union expenditure and social insurance payable $ 694,582 $ 693,969 Consulting, auditing, and legal expenses 484,984 537,973 Accrued payroll and welfare 304,768 304,512 Accrued interest expense 1,814,785 1,439,770 Other 349,327 274,520 Total $ 3,648,446 $ 3,250,744

DEFERRED TAX LIABILITY, NET (Ta

DEFERRED TAX LIABILITY, NET (Tables)	6 Months Ended
	Jun. 30, 2015
Deferred Tax [Abstract]
DEFERRED TAX LIABILITY, NET	As of June 30, 2015 and December 31, 2014, deferred tax liability consisted of the following: 2015 2014 Deferred tax asset — current (accrual of employee social insurance) $ 89,193 $ 89,114 Deferred tax liability — current (net investment in sales-type leases) (1,399,460) (1,124,451) Deferred tax liability, net of deferred tax asset – current $ (1,310,267) $ (1,035,337) Deferred tax asset — noncurrent (depreciation of fixed assets) $ 24,633,906 $ 30,310,142 Deferred tax liability — noncurrent (net investment in sales-type leases) (36,234,123) (43,612,679) Deferred tax liability, net of deferred tax asset – noncurrent $ (11,600,217) $ (13,302,537)

LOANS PAYABLE (Tables)

LOANS PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Future Minimum Payment to be made by Years	As of June 30, 2015, the future minimum repayment of all the loans including entrusted loan to be made by years is as follows: 2015 8,968,529 2016 63,401,270 2017 32,995,289 2018 8,021,460 2019 - Total $ 113,386,548

INCOME TAX (Tables)

INCOME TAX (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Reconciliation of U.S. Statutory Rates to Effective Tax Rate	The following table reconciles the US statutory rates to the Company’s effective tax rate for the six and three months ended June 30, 2015 and 2014, respectively: Six Months Three Months 2015 2014 2015 2014 U.S. statutory rates 34.0 % 34.0 % 34.0 % 34.0 % Tax rate difference – current provision (9.3) % (6.1) % (9.1) % (4.3) % Effective tax holiday (8.2) % (8.0) % (8.7) % (8.5) % Other (2.3) % 0.5 % (3.3) % 0.7 % Prior periods income tax adjustment per income tax return filed (2.2) % 2.9 % (3.1) % - % Effect of tax rate change on deferred tax items - % - % - % - % Valuation allowance on US NOL 1.0 % 1.8 % 0.6 % 1.5 % Tax per financial statements 13.0 % 25.1 % 10.4 % 23.4 %
Provision for Income Tax Expenses	The provision for income taxes expense for the six and three months ended June 30, 2015 and 2014 consisted of the following: Six Months Three Months 2015 2014 2015 2014 Income tax expense – current $ 3,735,946 $ 1,767,633 $ 2,863,502 $ 878,386 Income tax expense (benefit) - deferred (1,436,483) 1,471,536 (1,561,991) 1,123,254 Total income tax expense $ 2,299,463 $ 3,239,169 $ 1,301,511 $ 2,001,640

STOCK-BASED COMPENSATION PLAN (

STOCK-BASED COMPENSATION PLAN (Tables)	6 Months Ended
	Jun. 30, 2015
Summary of Option Activity	The following table summarizes activity for employees in the Company’s Plan: Number of Average Weighted Outstanding at January 1, 2015 733,333 $ 3.05 0.62 Exercisable at January 1, 2015 733,333 3.05 0.62 Granted - - - Exercised - - - Forfeited - - - Outstanding at June 30, 2015 733,333 3.05 0.12 Exercisable at June 30, 2015 733,333 $ 3.05 0.12
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 Outstanding at January 1, 2015 80,000 $ 3.83 0.31 Exercisable at January 1, 2015 80,000 3.83 0.31 Granted 40,000 - - Exercised - - - Forfeited 40,000 - - Outstanding at June 30, 2015 80,000 2.00 2.64 Exercisable at June 30, 2015 40,000 $ 2.98 0.52

COMMITMENTS (Tables)

COMMITMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Rental Payments Required Under Operating Leases	Future minimum annual rental payments required under operating leases as of June 30, 2015 were as below (by year): 2015 $ 254,868 Total $ 254,868

ORGANIZATION AND DESCRIPTION 36

ORGANIZATION AND DESCRIPTION OF BUSINESS (Narrative) (Details)

Dec. 12, 2013

Sep. 11, 2013USD ($)$ / sharesshares

Sep. 11, 2013CNY (¥)

Jun. 10, 2013USD ($)

Jun. 10, 2013CNY (¥)

Oct. 08, 2012USD ($)MW

Oct. 08, 2012CNY (¥)MW

Apr. 14, 2009USD ($)

Jun. 18, 2015

May. 29, 2015

Dec. 22, 2014USD ($)

Dec. 22, 2014CNY (¥)

Sep. 24, 2014USD ($)

Sep. 24, 2014CNY (¥)

Jun. 28, 2014USD ($)$ / sharesMWshares

Mar. 26, 2014USD ($)

Mar. 26, 2014CNY (¥)

Jul. 31, 2013USD ($)

Jul. 24, 2013

Jul. 19, 2013USD ($)

Jul. 19, 2013CNY (¥)

Jul. 18, 2013USD ($)

Jun. 25, 2013USD ($)

Jun. 15, 2013USD ($)

Jun. 15, 2013CNY (¥)

May. 31, 2013USD ($)

May. 31, 2013CNY (¥)

Mar. 30, 2013

Sep. 28, 2011USD ($)

Sep. 28, 2011CNY (¥)

Feb. 28, 2011USD ($)MW

Sep. 30, 2010

Jun. 29, 2010USD ($)

Jun. 29, 2010CNY (¥)

Dec. 31, 2014USD ($)

Jun. 30, 2015USD ($)

Jun. 30, 2015CNY (¥)

Dec. 22, 2014CNY (¥)

Sep. 24, 2014CNY (¥)

Aug. 27, 2014$ / shares

Jun. 28, 2014CNY (¥)shares

Sep. 11, 2013CNY (¥)shares

Aug. 31, 2013USD ($)

Jul. 22, 2013USD ($)

Jul. 22, 2013CNY (¥)

Jul. 19, 2013CNY (¥)

Jul. 18, 2013CNY (¥)

Jun. 25, 2013CNY (¥)

May. 31, 2013CNY (¥)

Oct. 08, 2012CNY (¥)

May. 25, 2011USD ($)

May. 25, 2011CNY (¥)

Feb. 28, 2011CNY (¥)

Apr. 14, 2009CNY (¥)

Organization and Nature Of Operations [Line Items]

Common Stock Issuable Per Share For Power Generation Systems | $ / shares

$ 8,233,779

Security Deposit

$ 338,079

¥ 2,130,000

Share Price | $ / shares

$ 1.49

Assets Repurchase Agreement [Member]

Organization and Nature Of Operations [Line Items]

Accrued Investment Income Receivable

$ 4,780,000

Gain (Loss) on Investments

980,000

Rongfeng [Member]

Organization and Nature Of Operations [Line Items]

Description on termination of agreement

1) if it is less than five years (including five years) into the term when Rongfeng requests termination, Rongfeng shall pay: Xian TCHs total investment amount plus Xian TCHs average annual investment return times (five years minus the years of which the system has already operated); 2) if it is more than five years into the term when Rongfeng requests the termination, Rongfeng shall pay: Xian TCHs total investment amount minus total amortization cost (the amortization period is ten years).

Long-term Contract for Purchase of Electric Power, Description

Rongfeng will start to pay an energy saving service fee from the date when the WHPG station passes the required 72 hour test run. The term of payment is for twenty (20) years. For the first ten (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 ten (10) years of the term, Rongfeng shall pay an energy saving service fee at RMB 0.432 ($0.071) per kWh (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 Rongfeng 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 five (5) years (including five (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 (five (5) years minus the years of which the system has already operated); 2) if it is more than five (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 ten (10) years).

Jitie [Member]

Organization and Nature Of Operations [Line Items]

Lease Agreement Term Description

Under the Repurchase Agreement, Jitie was to repurchase the Jitie Project from Xian TCH and pay outstanding energy saving service fees of RMB 1.8 million (approximately $294,599) to Xian TCH within five working days from the execution of the Repurchase Agreement on June 18, 2015. The Jitie Project was to be transferred to Jitie for a total price of RMB 90 million (approximately $14.73 million), and Jitie was to pay RMB 45 million within five working days from the execution of the Repurchase Agreement and pay another RMB 45 million within 15 working days from the execution of the Repurchase Agreement. The ownership of the Jitie Project was to be transferred to Jitie when it timely paid in full the Repurchase Price and the parties had completed the on-site assets transfer process and confirmed the actual Jitie Project transfer. As of June 30, 2015, Xian TCH received the first RMB 45 million (approximately $7.36 million) and RMB 1.8 million (approximately $294,599) energy saving service fees. On July 6, 2015, Xian TCH received the second RMB 45 million (approximately $7.36 million). As of June 30, 2015, Xian TCH had received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at date of transfer was $13.10 million. The Company recorded $1.62 million gain from this transaction.

Baoliyuan [Member]

Organization and Nature Of Operations [Line Items]

Sale Leaseback Transaction, Description

1) if it was less than five years (including five years) into the term when Baoliyuan requested termination, Baoliyuan was to pay Xian TCHs total investment amount plus Xian TCHs average annual investment return times (five years minus the years of which the system had already operated); 2) if it was more than five years into the term when Baoliyuan requested the termination, Baoliyuan was to pay Xian TCHs total investment amount minus total amortization cost (the amortization period is twenty years).

1) if it was less than five years (including five years) into the term when Baoliyuan requested termination, Baoliyuan was to pay Xian TCHs total investment amount plus Xian TCHs average annual investment return times (five years minus the years of which the system had already operated); 2) if it was more than five years into the term when Baoliyuan requested the termination, Baoliyuan was to pay Xian TCHs total investment amount minus total amortization cost (the amortization period is twenty years).

Long-term Contract for Purchase of Electric Power, Description

The construction period of the CDQ Project was expected to be fifteen months from the effective date of the Agreement. Baoliyuan was to pay an energy saving fee from the date when the WHPG station passed the required 72 hour test run. The term of payment was for twenty years and Baoliyuan was to pay an energy saving fee at RMB 0.7 ($0.114) per kilowatt hour (including tax) for the power generated from the system, from which Xian TCH shall take 92.86% and Baoliyuan was to take 7.14% as parties to share the energy saving benefits. During the term of the contract the energy saving fee was to be adjusted at the same percentage as the change of local grid electricity price. Baoliyuan was to provide guarantees to ensure it would fulfill its obligations under the Agreement. Upon the completion of the term, Xian TCH was to transfer the systems to Baoliyuan at RMB 1.

The construction period of the CDQ Project was expected to be fifteen months from the effective date of the Agreement. Baoliyuan was to pay an energy saving fee from the date when the WHPG station passed the required 72 hour test run. The term of payment was for twenty years and Baoliyuan was to pay an energy saving fee at RMB 0.7 ($0.114) per kilowatt hour (including tax) for the power generated from the system, from which Xian TCH shall take 92.86% and Baoliyuan was to take 7.14% as parties to share the energy saving benefits. During the term of the contract the energy saving fee was to be adjusted at the same percentage as the change of local grid electricity price. Baoliyuan was to provide guarantees to ensure it would fulfill its obligations under the Agreement. Upon the completion of the term, Xian TCH was to transfer the systems to Baoliyuan at RMB 1.

Baoliyuan [Member] | Payment Period One [Member]

Organization and Nature Of Operations [Line Items]

Fixed monthly fee for waste water treatment system

$ 171,010

¥ 1,050,000

Baoliyuan [Member] | Payment Period Two [Member]

Organization and Nature Of Operations [Line Items]

Fixed monthly fee for waste water treatment system

$ 153,094

¥ 940,000

TRT System [Member]

Organization and Nature Of Operations [Line Items]

Energy Saving Solution And Services Cost

179,000

¥ 1,100,000

Lease Repurchase Price

$ 5,690,000

¥ 35,000,000

Zhonggang [Member]

Organization and Nature Of Operations [Line Items]

Energy Saving Solution And Services Cost

$ 60,000,000

Lease Repurchase Price

$ 243,902

¥ 1,500,000

Biomass Power Generation Asset Transfer Agreement [Member]

Organization and Nature Of Operations [Line Items]

Purchase price for Power Generation Systems

$ 16,480,000

¥ 100,000,000

Common Stock Issuable For Power Generation Systems | shares

8,766,547

8,766,547

Common Stock Issuable Per Share For Power Generation Systems | $ / shares

$ 1.87

Lease Amount Per Month

$ 630,000

¥ 3,800,000

Biomass Power Generation Project Lease Agreement [Member]

Organization and Nature Of Operations [Line Items]

Leasing fees

$ 279,400

¥ 1,900,000

Lease period

15 years

15 years

Xi'an Zhonghong New Energy Technology Co., Ltd [Member]

Organization and Nature Of Operations [Line Items]

Contribution percentage in total investment

90.00%

90.00%

90.00%

90.00%

Original investment by subsidiary

$ 4,850,000

¥ 30,000,000

Energy Saving Solution And Services Cost

¥ 1,500,000

$ 4,370,000

¥ 27,000,000

Boxing County Chengli Gas Supply Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Total Contract Price For Materials Equipment

$ 66,680,000

¥ 400,000,000

Boxing County Chengli Gas Supply Co Ltd [Member] | EPC General Contractor Agreement [Member]

Organization and Nature Of Operations [Line Items]

Total Contract Price For Materials Equipment

$ 33,340,000

¥ 200,000,000

Waste Heat Power Generation Projects [Member]

Organization and Nature Of Operations [Line Items]

Accrued Investment Income Receivable

$ 8,040,000

Gain (Loss) on Investments

$ 1,760,000

Shenqiu Project [Member]

Organization and Nature Of Operations [Line Items]

Capacity Of Plant | MW

12

12

Leasing fees

$ 286,000

¥ 1,800,000

Lease period

11 years

11 years

Total cost of project

$ 11,100,000

¥ 68,000,000

Consideration of thermal power generation project

$ 3,570,000

¥ 22,500,000

Consideration of power generation project

$ 10,937,500

¥ 70,000,000

Shanxi Datong Coal Group Steel Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Power Generation Servicing Fee Description

Due to the change of its strategic plan, Datong notified Xian TCH that it would not be able to fulfill its obligations under the Cooperative Agreement and requested to repurchase the two 3MW Blast Furnace Power Recovery Turbine (the BPRT) systems and one 15MW Waste Gas Power Generation (the WGPG) system (the Systems) from Xian TCH and terminate the Cooperative Agreement. On May 29, 2015, Xian TCH entered into a Repurchase Agreement for the Recycling Economy Project with Datong. Under the Repurchase Agreement, Datong was to repurchase the Systems from Xian TCH and pay outstanding energy saving service fees of RMB 1.2 million (approximately $193,548) to Xian TCH within five working days from the execution of the Repurchase Agreement. The Systems were to be transferred to Datong for a total price of RMB 250 million (approximately $40.32 million) with RMB 100 million for two BPRT systems and RMB 150 million for one WGPG system. As of June 30, 2015, Xian TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at the date of transfer was $13.37 million. The Company recorded $2.98 million gain from two BPRT systems as non-operating income and $3.02 million gain from the WGPG system as gross profit from the sale.

Recycling Economy Project Description

Under the Repurchase Agreement, Datong was to repurchase the Systems from Xian TCH and pay outstanding energy saving service fees of RMB 1.2 million (approximately $193,548) to Xian TCH within five working days from the execution of the Repurchase Agreement. The Systems were to be transferred to Datong for a total price of RMB 250 million (approximately $40.32 million) with RMB 100 million for two BPRT systems and RMB 150 million (approximately $24.54 million) for one WGPG system. Datong was to pay RMB 150 million within 5 working days from the execution of the Repurchase Agreement and pay RMB 100 million within 15 working days from the execution of the Repurchase Agreement. The ownership of the Systems was to be transferred to Datong when it timely paid in full the entire Repurchase Price and the parties had completed the on-site assets transfer process and confirmed the actual Systems transfer. As of June 30, 2015, Xian TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable at date of transfer was $13.37 million. The Company recorded $2.98 million gain from two BPRT systems as non-operating income and $3.02 million gain from the WGPG system as gross profit from the sale.

Hongyuan Huifu [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

80.00%

Chengli Waste Heat Power Generation Projects [Member]

Organization and Nature Of Operations [Line Items]

Long-term Contract for Purchase of Electric Power, Description

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 Projecthas beencompleted in the second quarter of 2015and the project is currently under commissioning tests which we expect to be completed in the next couple months.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 WHPG system will be at least 7,200 hours per year.

Tianyu Waste Heat Power Generation Project [Member]

Organization and Nature Of Operations [Line Items]

Long-term Contract for Purchase of Electric Power, Description

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 for each of Xuzhou Tian'an and Xuzhou Huayu. 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 term of the Tianyu Agreement is twenty (20) years. The construction of the Tianyu Project is anticipated to be completed between the end of 2015 and the middle of 2016. Tianyu will provide the land for the CDQ systems and CDQ WHPG systems for free. Tianyu also guarantees that it will purchase all of the power generated by the CDQ WHPG systems.

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 for each of Xuzhou Tian'an and Xuzhou Huayu. 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 term of the Tianyu Agreement is twenty (20) years. The construction of the Tianyu Project is anticipated to be completed between the end of 2015 and the middle of 2016. Tianyu will provide the land for the CDQ systems and CDQ WHPG systems for free. Tianyu also guarantees that it will purchase all of the power generated by the CDQ WHPG systems.

Erdos Metallurgy Company Limited [Member]

Organization and Nature Of Operations [Line Items]

Term of joint ventures

20 years

Investment cost

$ 79,000,000

¥ 500,000,000

Erdos Metallurgy Company Limited [Member] | Initial Investment [Member]

Organization and Nature Of Operations [Line Items]

Investment cost

$ 17,550,000

¥ 120,000,000

Erdos Tch [Member]

Organization and Nature Of Operations [Line Items]

Contribution percentage in total investment

7.00%

7.00%

7.00%

7.00%

Construction cost

$ 1,290,000

¥ 8,000,000

Accumulated profit

$ 226,000

Erdos Tch [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Capacity Of Plant | MW

3

Erdos Tch [Member] | Initial Investment [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

20.00%

Erdos Tch [Member] | After Return Of Initial Investment [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

40.00%

Erdos Tch [Member] | Location One [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Capacity Of Plant | MW

15

Xian Tch [Member]

Organization and Nature Of Operations [Line Items]

Investment cost

$ 490,000

¥ 3,000,000

Contribution percentage in total investment

93.00%

93.00%

Profit distribution percentage

20.00%

Percentage of accumulated profit

20.00%

Minority interest decrease from redemptions

$ 1,290,000

Sale Leaseback Transaction, Description

(i) BMPG systems to Pucheng Phase I and II (15 and 11 year terms, respectively); (ii) BMPG systems to Shenqiu Phase I (11 year term); (iii) Shenqiu Phase II (9.5 year term); and (iv) WGPG systems to Yida (15 year term).

Xian Tch [Member] | Waste Heat Power Generation Projects [Member]

Organization and Nature Of Operations [Line Items]

Purchase price for Power Generation Systems | ¥

¥ 60,000,000

Xian Tch [Member] | Clean Development Mechanism [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

40.00%

Xian Tch [Member] | Shanxi Datong Coal Group Steel Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Capacity Of Plant | MW

15

Investment cost

$ 28,600,000

¥ 180,000,000

Xian Tch [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member]

Organization and Nature Of Operations [Line Items]

Investment cost

$ 9,710,000

¥ 60,000,000

Lease period

24 years

24 years

Minimum service fee

$ 300,000

¥ 1,800,000

Xian Tch [Member] | Hongyuan Huifu [Member]

Organization and Nature Of Operations [Line Items]

Original investment by subsidiary

$ 650,000

¥ 4,000,000

Xian Tch [Member] | Qitaihe City Boli Yida Coal Selection Co Ltd Yida [Member]

Organization and Nature Of Operations [Line Items]

Capacity Of Plant | MW

15

Investment cost

$ 18,690,000

¥ 115,000,000

Common Stock Issuable For Power Generation Systems | shares

8,233,779

8,233,779

Security Deposit

$ 490,000

¥ 3,000,000

Shares Issued, Price Per Share | $ / shares

$ 1.76

Common Stock Value Issuable For Power Generation Systems

$ 14,490,000

Share Price | $ / shares

$ 2.27

Xian Tch [Member] | Initial Investment [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

80.00%

Xian Tch [Member] | After Return Of Initial Investment [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

60.00%

Xian Tch [Member] | Biomass Power Generation System [Member]

Organization and Nature Of Operations [Line Items]

Leasing fees

$ 239,000

¥ 1,500,000

Lease period

9 years 6 months

Zhongbao [Member]

Organization and Nature Of Operations [Line Items]

Terms of contracts

9 years

Capacity per year

80,000

Variable Interest Entity Ownership Percentage

100.00%

100.00%

Zhongbao [Member] | Clean Development Mechanism [Member]

Organization and Nature Of Operations [Line Items]

Profit distribution percentage

60.00%

Xian TCH And Shanxi Datong [Member] | First Five Years [Member]

Organization and Nature Of Operations [Line Items]

Minimum service fee

$ 190,000

¥ 1,200,000

Xian TCH And Shanxi Datong [Member] | Second Five Years [Member]

Organization and Nature Of Operations [Line Items]

Minimum service fee

180,000

1,100,000

Xian TCH And Shanxi Datong [Member] | Minimum Ten Years [Member]

Organization and Nature Of Operations [Line Items]

Minimum service fee

160,000

1,000,000

Xian TCH And Shanxi Datong [Member] | MaximumTen Years [Member]

Organization and Nature Of Operations [Line Items]

Minimum service fee

$ 150,000

¥ 900,000

HYREF Fund [Member]

Organization and Nature Of Operations [Line Items]

Original investment by subsidiary

$ 830,000

¥ 5,000,000

Subscribed amount of initial capital contribution

75,000,000

460,000,000

Total Fund Capital Contribution

$ 76,660,000

460,000,000

Preferred Limited Partnership Term

3 years

Partnership expiration

Jul. 18, 2019

HYREF Fund [Member] | China Orient Asset Management Co., Ltd [Member]

Organization and Nature Of Operations [Line Items]

Subscribed amount of initial capital contribution

$ 46,670,000

280,000,000

HYREF Fund [Member] | Xi'an TCH Limited Partners [Member]

Organization and Nature Of Operations [Line Items]

Subscribed amount of initial capital contribution

12,500,000

75,000,000

HYREF Fund [Member] | Hongyuan Huifu [Member]

Organization and Nature Of Operations [Line Items]

Subscribed amount of initial capital contribution

$ 16,670,000

¥ 100,000,000

Hongyuan Recycling Energy Investment Management Beijing Co Ltd [Member]

Organization and Nature Of Operations [Line Items]

Original investment by subsidiary | ¥

¥ 10,000,000

Variable Entity Ownership Percentage

40.00%

40.00%

Xiant Chenergy Tech Coltd Member [Member] | Waste Heat Power Generation Projects [Member]

Organization and Nature Of Operations [Line Items]

Purchase price for Power Generation Systems

$ 9,760,000

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Significant Accounting Policies [Line Items]
Accounts receivable	$ 7,360,639	$ 16,330
Bank loans payable [Member]
Significant Accounting Policies [Line Items]
Long term loans from bank	$ 50,900,000	67,410,000
Xi'an Tch [Member]
Significant Accounting Policies [Line Items]
Equity interest percentage	100.00%
Zhonghong [Member]
Significant Accounting Policies [Line Items]
Equity interest percentage	90.00%
Sale leaseback transaction, amount due under financing arrangement	$ 62,480,000	$ 62,430,000

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Estimated Useful Lives) (Details)	6 Months Ended
	Jun. 30, 2015
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 and Other Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Office and Other Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic and Diluted Earnings per Share) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation Of Basic and Diluted Earnings [Line Items]
Net income	$ 11,279,117	$ 6,589,058	$ 15,414,915	$ 9,712,082
Weighted average shares outstanding - basic (in shares)	83,084,035	61,217,625	83,078,234	61,066,042
Effect of dilutive securities:
Options granted	0	82,307	0	115,187
Weighted average shares outstanding - diluted (in shares)	83,084,035	61,299,932	83,078,234	61,181,229
Earnings per share - basic (in dollars per share)	$ 0.14	$ 0.11	$ 0.19	$ 0.16
Earnings per share - diluted (in dollars per share)	$ 0.14	$ 0.11	$ 0.19	$ 0.16

INVESTMENT IN SALES-TYPE LEAS40

INVESTMENT IN SALES-TYPE LEASES, NET (Narrative) (Details)	6 Months Ended
	Jun. 30, 2015
Investment [Line Items]
Sale Leaseback Transaction Lease Terms	Under sales-type leases, Xi’an TCH leases the following systems: (i) BMPG systems to Pucheng Phase I and II (15 and 11 year terms, respectively); (ii) BMPG systems to Shenqiu Phase I (11 year term); (iii) Shenqiu Phase II (9.5 year term); and (iv) WGPG systems to Yida (15 year term).

INVESTMENT IN SALES-TYPE LEAS41

INVESTMENT IN SALES-TYPE LEASES, NET (Components of Net Investment in Leases) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Total future minimum lease payments receivable	$ 428,978,016	$ 583,820,886
Less: executory cost	(102,370,458)	(134,771,919)
Less: unearned interest income	(175,005,482)	(268,028,368)
Investment in sales-type leases, net	151,602,076	181,020,599
Current portion	6,665,583	6,561,984
Noncurrent portion	$ 144,936,493	$ 174,458,615

INVESTMENT IN SALES-TYPE LEAS42

INVESTMENT IN SALES-TYPE LEASES, NET (Schedule of Future Minimum Rentals) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
2,015	$ 35,772,703
2,016	34,545,930
2,017	34,545,930
2,018	34,545,930
2,019	34,545,930
Thereafter	255,021,593
Total	$ 428,978,016	$ 583,820,886

PREPAID EXPENSES (Narrative) (D

PREPAID EXPENSES (Narrative) (Details) $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	Dec. 31, 2014USD ($)	Jul. 31, 2013USD ($)	Jul. 31, 2013CNY (¥)
Prepaid Expense Current And Noncurrent				$ 75,000	¥ 460
Percentage Of Funds Raised	2.00%	2.00%
Consulting Fees	$ 1,500	¥ 9.2
Percentage Of Funds Actually Contributed	2.00%	2.00%
Prepaid Consulting Expenses	$ 130		$ 880

OTHER RECEIVABLES (Narrative) (

OTHER RECEIVABLES (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Advance To Third Party	$ 70	$ 560
Advance To Employees	40	40
Maintenance Cost And Tax Receivable	500	$ 100
Guarantee Deposit	$ 1,470

LONG TERM INVESTMENT (Narrative

LONG TERM INVESTMENT (Narrative) (Details) ¥ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 25, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2013USD ($)	Jul. 18, 2013USD ($)	Jul. 18, 2013CNY (¥)	Jun. 25, 2013CNY (¥)
Xi'an TCH Limited Partner [Member]
Long Term Investment [Line Items]
Original Investment By Subsidiary	$ 650,000								¥ 4
Profit distribution percentage	20.00%
One Time Commission To Fund Management						$ 1,600,000
Percentage Of Owned Fund							16.30%	16.30%
Equity based invstment income		$ 48,362	$ 23,548	$ 102,255	$ 77,091
Equity interest percentage		91.70%		91.70%
Xi'an TCH Limited Partner [Member] | Ownership Interest [Member]
Long Term Investment [Line Items]
Profit distribution percentage	40.00%
Xi'an TCH Limited Partner [Member] | HYREF Fund [Member]
Long Term Investment [Line Items]
Subscribed Amount Of Initial Capital Contribution							$ 16,670,000	¥ 100
Cost Method Investments							12,200,000	75
China Orient Asset Management Co., Ltd [Member] | HYREF Fund [Member]
Long Term Investment [Line Items]
Subscribed Amount Of Initial Capital Contribution							12,500,000	75
Hongyuan Recycling Energy Investment Management Co.Ltd [Member]
Long Term Investment [Line Items]
Registered Capital	$ 1,600,000								¥ 10
Hongyuan Huifu [Member]
Long Term Investment [Line Items]
Profit distribution percentage	80.00%
Investment cost							830,000	5
Hongyuan Huifu [Member] | HYREF Fund [Member]
Long Term Investment [Line Items]
Original Investment By Subsidiary							46,670,000	280
Zhonghong [Member]
Long Term Investment [Line Items]
Total Fund Capital Contribution							$ 75,000,000	¥ 460
Equity interest percentage		90.00%		90.00%
Zhonghong [Member] | Revenue
Long Term Investment [Line Items]
Management Company Revenue				100.00%

CONSTRUCTION IN PROGRESS (Narra

CONSTRUCTION IN PROGRESS (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Xuzhou Zhongtai project [Member]
Construction Contracts [Line Items]
Additional Construction In Progress Gross	$ 7,790
Tangshan Rongfeng project [Member]
Construction Contracts [Line Items]
Additional Construction In Progress Gross	2,420
Xuzhou Huayu project [Member]
Construction Contracts [Line Items]
Additional Construction In Progress Gross	8,180
Xuzhou Tian'an project [Member]
Construction Contracts [Line Items]
Additional Construction In Progress Gross	9,810
Boxing County Chengli [Member]
Construction Contracts [Line Items]
Additional Construction In Progress Gross	$ 8,180

CONSTRUCTION IN PROGRESS (Detai

CONSTRUCTION IN PROGRESS (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	$ 145,648,634	$ 154,340,627
Shanxi Datong Coal Group on 15MW WGPG [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	0	18,431,457
Xuzhou Zhongtai [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	28,720,801	26,573,828
Tangshan Rongfeng [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	29,823,821	28,373,387
Xuzhou Huayu [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	30,068,151	28,510,731
Xuzhou Tian'an [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	27,150,590	25,697,884
Boxing County Chengli [Member]
Schedule of construction in progress [Line Items]
Construction in Progress, Gross	$ 29,885,271	$ 26,753,340

TAXES PAYABLE (Details)

TAXES PAYABLE (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Taxes Payable [Line Items]
Taxes payable	$ 3,658,276	$ 2,614,311
Income [Member]
Taxes Payable [Line Items]
Taxes payable	2,942,736	1,872,995
Business [Member]
Taxes Payable [Line Items]
Taxes payable	283,765	306,848
VAT arising from transfer WGPG to Shenmu [Member]
Taxes Payable [Line Items]
Taxes payable	392,567	392,221
Other [Member]
Taxes Payable [Line Items]
Taxes payable	$ 39,208	$ 42,247

ACCRUED LIABILITIES AND OTHER49

ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	$ 3,648,446	$ 3,250,744
Employee training, labor union expenditure and social insurance payable [Member]
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	694,582	693,969
Consulting, auditing, and legal expenses [Member]
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	484,984	537,973
Accrued payroll and welfare [Member]
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	304,768	304,512
Accrued interest expense [Member]
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	1,814,785	1,439,770
Other [Member]
Accounts Payable and Accrued Liabilities [Line Items]
Accrued liabilities and other payables	$ 349,327	$ 274,520

DEFERRED TAX LIABILITY, NET (Su

DEFERRED TAX LIABILITY, NET (Summary of Deferred Tax Liability) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items]
Deferred tax asset — current (accrual of employee social insurance)	$ 89,193	$ 89,114
Deferred tax liability — current (net investment in sales-type leases)	(1,310,267)	(1,035,337)
Deferred tax liability, net of deferred tax asset - current	(1,310,267)	(1,035,337)
Deferred tax asset — noncurrent (depreciation of fixed assets)	24,633,906	30,310,142
Deferred tax liability — noncurrent (net investment in sales-type leases)	(11,600,217)	(13,302,537)
Deferred tax liability, net of deferred tax asset - noncurrent	$ (11,600,217)	$ (13,302,537)

LOANS PAYABLE (Entrusted Loan P

LOANS PAYABLE (Entrusted Loan Payable) - (Narrative) (Details) ¥ in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015CNY (¥)	Jul. 31, 2013CNY (¥)
Percentage Of Service Fee On Loan	0.10%
Xi'an TCH Limited Partner [Member]
Capital Contribution | ¥					¥ 27
Loans Payable, Fair Value Disclosure		$ 12,270,000
Entrusted loan [Member]
Debt Investments	$ 74,500,000				457
Description Of Loan Payable1		During the first three (3) 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
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.
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three		$ 45,540,000		¥ 280
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four		16,270,000		100
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five		$ 12,520,000		¥ 77
Debt Instrument, Interest Rate, Stated Percentage		12.50%		12.50%
Interest Expense, Debt		$ 258,740	$ 688,258
Capital Contribution		4,420,000
Loans Payable, Fair Value Disclosure		74,750,000
Entrusted loan [Member] | Xi'an TCH Limited Partner [Member]
Loans Payable To Bank, Noncurrent		$ 12,270,000
Zhonghong [Member]
Debt Investments	74,500,000				457
Total Fund Capital Contribution	75,000,000				460
HYREF Fund [Member]
Equity Method Investments	$ 500,000				¥ 3

LOANS PAYABLE (Bank Loans - Ind

LOANS PAYABLE (Bank Loans - Industrial Bank) (Narrative) (Details) ¥ in Thousands	Oct. 09, 2013USD ($)	Nov. 08, 2011USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	Oct. 09, 2013CNY (¥)	Nov. 08, 2011CNY (¥)
Industrial Bank Loan Four [Member]
Debt Instrument [Line Items]
Bank loans payable issued		$ 21,040,000				¥ 130,000
Debt instrument maturity term		4 years
Rate as percentage of national base interest rate used to reset floating interest rate		115.00%
Debt instrument, basis spread on variable rate		7.36%
Industrial Bank Loan Five [Member]
Debt Instrument [Line Items]
Bank loans payable issued	$ 16,400,000				¥ 100,000
Rate as percentage of national base interest rate used to reset floating interest rate	120.00%
Minimum quarterly payment			$ 1,618,463	¥ 10,000
2014 [Member]
Debt Instrument [Line Items]
Minimum quarterly payment			615,067	3,750
2015 [Member]
Debt Instrument [Line Items]
Minimum quarterly payment			1,025,111	6,250
2016 [Member]
Debt Instrument [Line Items]
Minimum quarterly payment			$ 1,230,133	¥ 7,500

LOANS PAYABLE (Bank Loan - Bank

LOANS PAYABLE (Bank Loan - Bank of Xi'an) (Narrative) (Details)	1 Months Ended		6 Months Ended
	May. 28, 2014USD ($)	May. 28, 2014CNY (¥)	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	May. 28, 2014CNY (¥)
Debt Instrument [Line Items]
Re-guarantee service fee			$ 405,696	¥ 2,550,000
Mr. Guohua Ku [Member]
Debt Instrument [Line Items]
Debt Instrument, stated rate	0.65%				0.65%
Re-guarantee service fee	$ 155,280	¥ 950,000
Loan From Bank Of Xian [Member]
Debt Instrument [Line Items]
Bank loans payable issued	$ 6,500,000				¥ 40,000,000
Debt instrument maturity term	1 year	1 year
Debt Instrument, Maturity Date	May 29, 2015	May 29, 2015

LOANS PAYABLE (Bank Loan - Ba54

LOANS PAYABLE (Bank Loan - Bank of Chongqing) (Narrative) (Details)	Apr. 11, 2014USD ($)	Apr. 11, 2014CNY (¥)	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	Apr. 11, 2014CNY (¥)
Debt Instrument [Line Items]
Payments of Debt Issuance Costs			$ 405,696	¥ 2,550,000
Loan From Bank of Chongqing [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 8,130,000				¥ 50,000,000
Debt Instrument Maturity In Years	3 years	3 years
Debt Instrument, Maturity Date	Apr. 10, 2017	Apr. 10, 2017
Debt Instrument, Interest Rate, Stated Percentage	9.225%				9.225%
Debt Instrument, Periodic Payment, Principal	$ 810,000	¥ 5,000,000
Debt Instrument Remaining loans Receivable	7,320,000	45,000,000
Payments of Debt Issuance Costs	$ 155,280	¥ 950,000
Loans Payable, Noncurrent			$ 4,500,000

LOANS PAYABLE (Trust Loan - Zho

LOANS PAYABLE (Trust Loan - Zhongrong International Trust - Xuzhou Zhongtai and Tangshan Rongfeng) (Narrative) (Details) ¥ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Feb. 17, 2014USD ($)	Feb. 17, 2014CNY (¥)
Debt Instrument [Line Items]
Liabilities, Current, Total	$ 19,842,808	$ 26,661,308
Liabilities, Noncurrent, Total	118,488,139	$ 140,496,523
Trust Loan Agreement With Zhongrong International Trust Co Ltd One [Member]
Debt Instrument [Line Items]
Interest Paid, Capitalized	$ 2,770,000
Debt Instrument Maturity In Years	4 years
Trust Loan Agreement With Zhongrong International Trust Co Ltd One [Member] | Zhongtai [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 24,500,000	¥ 150
Long-term Debt, Gross	$ 24,470,000
Debt Instrument Repayment Of Principal Percentage One	30.00%
Debt Instrument Repayment Of Principal Percentage Two	30.00%
Debt Instrument Repayment Of Principal Percentage Three	40.00%
Liabilities, Current, Total	$ 4,950,000
Liabilities, Noncurrent, Total	19,520,000
Trust Loan Agreement With Zhongrong International Trust Co Ltd Two [Member] | Rongfeng [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 22,100,000	¥ 135
Long-term Debt, Gross	$ 21,930,000
Debt Instrument Repayment Of Principal Percentage One	30.00%
Debt Instrument Repayment Of Principal Percentage Two	30.00%
Debt Instrument Repayment Of Principal Percentage Three	40.00%
Liabilities, Current, Total	$ 3,200,000
Liabilities, Noncurrent, Total	$ 18,740,000

LOANS PAYABLE (Future Minimum R

LOANS PAYABLE (Future Minimum Repayments of all Bank Loans and Entrusted Loan) (Details) - Bank Loans and Entrusted Loan [Member]	Jun. 30, 2015USD ($)
Debt Instrument [Line Items]
2,015	$ 8,968,529
2,016	63,401,270
2,017	32,995,289
2,018	8,021,460
2,019	0
Total	$ 113,386,548

LONG TERM PAYABLE - FINANCING57

LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION (Long Term Payable) - (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	Jun. 30, 2014USD ($)	Jun. 30, 2014CNY (¥)	Jun. 30, 2015CNY (¥)	Mar. 31, 2015USD ($)	Mar. 31, 2015CNY (¥)
Sale Leaseback Transaction [Line Items]
One-time non-refundable leasing service charge			$ 405,696	¥ 2,550,000
Refundable security deposit	$ 338,079		338,079				¥ 2,130,000
Amortization of prepaid leasing service fee	$ 0	$ 20,955		0	$ 41,680	¥ 255,000
Financing Agreement with Cinda Financial Leasing Co., Ltd [Member]
Sale Leaseback Transaction [Line Items]
Sale Leaseback Transaction, Net Proceeds			$ 6,720,000	¥ 42,500,000
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	7.6475%		7.6475%				7.6475%
Present value of future minimum lease Payments, Sale leaseback transactions	$ 8,150,000		$ 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	¥ 2,590,000
Refundable security deposit								$ 350,000	¥ 2,125,000
Sale Leaseback Transaction Principal And Interest Payments								420,000	2,550,000
Sale Leaseback Transaction Principal Amount								$ 1,970,000	¥ 12,140,000

REFUNDABLE DEPOSIT FROM CUSTO58

REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING (Narrative) (Details) ¥ in Thousands	Jun. 30, 2015USD ($)	Jun. 30, 2015CNY (¥)	Dec. 31, 2014USD ($)
Security Deposit	$ 338,079	¥ 2,130
Pucheng, Shenqiu and Yida systems [Member]
Security Deposit	$ 1,652,054		$ 1,650,597

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ / shares in Units, ¥ in Thousands	Sep. 12, 2014USD ($)	Sep. 12, 2014CNY (¥)	Sep. 05, 2014USD ($)	Sep. 05, 2014CNY (¥)	Aug. 27, 2014$ / sharesshares	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 01, 2014USD ($)	Mar. 01, 2014CNY (¥)
Related Party Transaction [Line Items]
Advance to related party						$ 44,059	$ 40,954
Shares Resale Period					180 days
Share Price | $ / shares					$ 1.49
Loan Agreement [Member]
Related Party Transaction [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount								$ 13,000,000	¥ 80,000
Mr. Ku [Member]
Related Party Transaction [Line Items]
Long-term Debt, Gross						0
Mr. Ku [Member] | Loan Agreement [Member]
Related Party Transaction [Line Items]
Advance to related party						$ 44,059	40,954
Long-term Debt, Gross							$ 0
Mr. Guohua Ku [Member]
Related Party Transaction [Line Items]
Stock Trading Days					15 days
Stock Issued During Period, Shares, Other | shares					13,829,074
Sale of Stock, Price Per Share | $ / shares					$ 1.37
Mr. Guohua Ku [Member] | Installments One [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Common Stock			$ 12,000,000	¥ 74,050
Mr. Guohua Ku [Member] | Installments Two [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Common Stock	$ 6,910,000	¥ 42,850

NONCONTROLLING INTEREST (Narrat

NONCONTROLLING INTEREST (Narrative) (Details) ¥ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 15, 2013	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jul. 15, 2013USD ($)	Jul. 15, 2013CNY (¥)
Noncontrolling Interest [Line Items]
Net Losses Attributable to Noncontrolling Interest		$ 7,779	$ 22,393	$ 16,117	$ 43,864
Xi'an TCH [Member]
Noncontrolling Interest [Line Items]
Capital						$ 4,880,000	¥ 30
Equity Method Investments						$ 4,370,000	¥ 27
Equity Method Investment, Ownership Percentage						90.00%	90.00%
Indirect Ownership Percentage Details	HYREF Fund 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 11, which resulted in an additional indirect ownership of Xi’an TCH in Zhonghong of 1.7%
Investment Center [Member]
Noncontrolling Interest [Line Items]
Equity Method Investment, Ownership Percentage						10.00%	10.00%
Noncontrolling Interest, Ownership Percentage by Parent						8.30%	8.30%

INCOME TAX (Narrative) (Details

INCOME TAX (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Effective income tax rate	10.40%	23.40%	13.00%	25.10%
Net operating losses	$ 14,100		$ 14,100
Deferred tax assets, valuation allowance, percentage	100.00%		100.00%
Operating Income Loss Carryforwards Year			20 years
Shanghai TCH [Member]
Income Taxes [Line Items]
Effective income tax rate					25.00%
Xian TCH [Member]
Income Taxes [Line Items]
Effective income tax rate						15.00%
Erdos TCH Zhonghong Huahong [Member]
Income Taxes [Line Items]
Effective income tax rate					25.00%

INCOME TAX (Schedule of Effecti

INCOME TAX (Schedule of Effective Tax Rate) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule Of Effective Tax Rate [Line Items]
US statutory rates	34.00%	34.00%	34.00%	34.00%
Tax rate difference - current provision	(9.10%)	(4.30%)	(9.30%)	(6.10%)
Effective tax holiday	(8.70%)	(8.50%)	(8.20%)	(8.00%)
Other	(3.30%)	0.70%	(2.30%)	0.50%
Prior periods income tax adjustment per income tax return filed	(3.10%)	0.00%	(2.20%)	2.90%
Effect of tax rate change on deferred tax items	0.00%	0.00%	0.00%	0.00%
Valuation allowance on US NOL	0.60%	1.50%	1.00%	1.80%
Tax per financial statements	10.40%	23.40%	13.00%	25.10%

INCOME TAX (Provision for Incom

INCOME TAX (Provision for Income Taxes) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Provision For Income Taxes Expenses [Line Items]
Income tax expense - current	$ 2,863,502	$ 878,386	$ 3,735,946	$ 1,767,633
Income tax expense (benefit) - deferred	(1,561,991)	1,123,254	(1,436,483)	1,471,536
Total income tax expense	$ 1,301,511	$ 2,001,640	$ 2,299,463	$ 3,239,169

STOCK-BASED COMPENSATION PLAN64

STOCK-BASED COMPENSATION PLAN (Narrative) (Details) $ / shares in Units, ¥ in Thousands	Sep. 12, 2014USD ($)	Sep. 12, 2014CNY (¥)	Sep. 05, 2014USD ($)	Sep. 05, 2014CNY (¥)	Oct. 07, 2010USD ($)shares	Aug. 13, 2010$ / sharesshares	Jun. 19, 2015shares	Mar. 31, 2015USD ($)$ / sharesshares	Aug. 27, 2014$ / sharesshares	Oct. 16, 2013USD ($)shares	Jan. 20, 2010USD ($)$ / sharesshares	Oct. 30, 2009USD ($)$ / sharesshares	Jun. 30, 2015$ / sharesshares	Dec. 31, 2014$ / shares
Granted							12,462,605
Common Stock, Par or Stated Value Per Share | $ / shares													$ 0.001	$ 0.001
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 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.
Stock Issued During Period, Shares, Restricted Stock Award, Gross										75,000
Stock Issued During Period, Value, Restricted Stock Award, Gross | $										$ 187,500
Share Price | $ / shares									$ 1.49
Shares Resale Period									180 days
Mr. Guohua Ku [Member]
Stock Issued During Period, Shares, Other									13,829,074
Sale of Stock, Price Per Share | $ / shares									$ 1.37
Mr. Guohua Ku [Member] | Installments One [Member]
Proceeds from Issuance of Common Stock			$ 12,000,000	¥ 74,050
Mr. Guohua Ku [Member] | Installments Two [Member]
Proceeds from Issuance of Common Stock	$ 6,910,000	¥ 42,850
Independent Directors Compensation Plan [Member]
Granted					40,000			40,000			40,000	130,000
Common Stock, Par or Stated Value Per Share | $ / shares								$ 0.001
Grant date excersise price | $ / shares											$ 4.68	$ 1.85
Volatility percentage rate					87.00%			82.00%			100.00%	100.00%
Risk free interest rate					3.54%			1.37%			3.54%	3.54%
Dividend yield					0.00%			0.00%			0.00%	0.00%
Grant date fair value | $					$ 83,000			$ 26,528			$ 142,000	$ 183,000
Compensation per month | $					$ 2,000			$ 2,000
Employee Stock Option [Member]
Granted													0
Grant date excersise price | $ / shares													$ 0
Employee Stock Option [Member] | Second and Third Tranche [Member]
Volatility percentage rate						92.00%
Risk free interest rate						3.54%
Dividend yield						0.00%
2007 Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares													2,200,000
Managerial And Non Managerial Employees [Member] | 2007 Plan [Member] | Employee Stock Option [Member]
Granted						2,200,000
Grant date excersise price | $ / shares						$ 3.05

STOCK-BASED COMPENSATION PLAN65

STOCK-BASED COMPENSATION PLAN (Summary of Option Activity) (Details) - Equity-Based Arrangements, Individual Contracts, Type of Deferred Compensation [Domain] - $ / shares	1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 19, 2015	Jun. 30, 2015	Dec. 31, 2014
Number of Shares
Granted	12,462,605
Employee Stock Option [Member]
Number of Shares
Beginning Balance, Outstanding		733,333
Beginning Balance, Exercisable		733,333
Granted		0
Exercised		0
Forfeited		0
Ending Balance, Outstanding		733,333	733,333
Ending Balance, Exercisable		733,333	733,333
Average Exercise Price per Share
Beginning Balance, Outstanding		$ 3.05
Beginning Balance, Exercisable		3.05
Granted		0
Exercised		0
Forfeited		0
Ending Balance, Outstanding		3.05	$ 3.05
Ending Balance, Exercisable		$ 3.05	$ 3.05
Weighted Average Remaining Contractual Term in Years
Outstanding		1 month 13 days	7 months 13 days
Granted
Exercised
Forfeited
Exercisable		1 month 13 days	7 months 13 days
Independent Directors Compensation Plan [Member]
Number of Shares
Beginning Balance, Outstanding		80,000
Beginning Balance, Exercisable		80,000
Granted		40,000
Exercised		0
Forfeited		40,000
Ending Balance, Outstanding		80,000	80,000
Ending Balance, Exercisable		40,000	80,000
Average Exercise Price per Share
Beginning Balance, Outstanding		$ 3.83
Beginning Balance, Exercisable		3.83
Granted		0
Exercised		0
Forfeited		0
Ending Balance, Outstanding		2	$ 3.83
Ending Balance, Exercisable		$ 2.98	$ 3.83
Weighted Average Remaining Contractual Term in Years
Outstanding		2 years 7 months 20 days	3 months 22 days
Granted
Exercised			3 months 22 days
Forfeited
Exercisable		6 months 7 days

CONTINGENCIES (Narrative) (Deta

CONTINGENCIES (Narrative) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Xi'an TCH [Member]
Schedule Of Contingencies [Line Items]
Notes Payable, Related Parties, Current	$ 0	$ 0

COMMITMENTS (Narrative) (Detail

COMMITMENTS (Narrative) (Details) - USD ($)	Mar. 04, 2014	Sep. 16, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Loss Contingencies [Line Items]
Operating Lease Term	2 years	2 years
Operating lease expiry date		Dec. 31, 2015
Monthly rental payment	$ 20,140	$ 12,110
Rental expense			$ 100,223	$ 116,994	$ 200,017	$ 223,425

COMMITMENTS (Future Minimum Ann

COMMITMENTS (Future Minimum Annual Rental Payments) (Details)	Jun. 30, 2015USD ($)
Loss Contingencies [Line Items]
2,015	$ 254,868
Total	$ 254,868