Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 23, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CHINA RECYCLING ENERGY CORP | ||
Entity Central Index Key | 721,693 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 68,960 | ||
Trading Symbol | CREG | ||
Entity Common Stock, Shares Outstanding | 83,084,035 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and equivalents | $ 41,749,388 | $ 35,871,030 |
Restricted cash | 1,130,344 | 0 |
Accounts receivable | 15,399,778 | 16,330 |
Current portion of investment in sales-type leases, net | 6,679,019 | 6,561,984 |
Interest receivable on sales type leases | 555,451 | 974,526 |
Prepaid expenses | 1,179,778 | 951,180 |
Other receivables | 553,886 | 1,196,684 |
Total current assets | 67,247,644 | 45,571,734 |
NON-CURRENT ASSETS | ||
Investment in sales-type leases, net | 133,079,634 | 174,458,615 |
Long term investment | 950,470 | 821,205 |
Long term deposit | 57,033 | 60,525 |
Property and equipment, net | 17,724 | 25,116 |
Construction in progress | 115,522,068 | 154,340,627 |
Total non-current assets | 249,626,929 | 329,706,088 |
TOTAL ASSETS | 316,874,573 | 375,277,822 |
CURRENT LIABILITIES | ||
Accounts payable | 427,732 | 1,140,181 |
Notes payable - bank acceptances | 1,130,344 | 163,425 |
Taxes payable | 1,058,417 | 2,614,311 |
Accrued liabilities and other payables | 3,199,395 | 3,250,744 |
Due to related parties | 44,059 | 40,954 |
Deferred tax liability, net | 1,538,105 | 1,035,337 |
Loans payable - current | 6,159,911 | 15,729,694 |
Interest payable on entrusted loans | 268,801 | 285,257 |
Current portion of entrusted loan payable | 43,119,379 | 0 |
Current portion of long term payable | 0 | 2,401,405 |
Total current liabilities | 56,946,143 | 26,661,308 |
NONCURRENT LIABILITIES | ||
Deferred tax liability, net | 10,771,348 | 13,302,537 |
Refundable deposit from customers for systems leasing | 1,555,378 | 1,650,597 |
Loans payable | 18,187,138 | 63,114,888 |
Entrusted loan payable | 15,707,773 | 62,428,501 |
Total noncurrent liabilities | 46,221,637 | 140,496,523 |
Total liabilities | $ 103,167,780 | $ 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 December 31, 2015 and 2014, respectively | $ 83,084 | $ 83,009 |
Additional paid in capital | 111,714,392 | 111,517,578 |
Shares to be issued | 0 | 187,500 |
Statutory reserve | 13,823,789 | 11,888,170 |
Accumulated other comprehensive income | 3,210,315 | 15,987,138 |
Retained earnings | 84,661,602 | 68,199,797 |
Total Company stockholders' equity | 213,493,182 | 207,863,192 |
Noncontrolling interest | 213,611 | 256,799 |
Total equity | 213,706,793 | 208,119,991 |
TOTAL LIABILITIES AND EQUITY | $ 316,874,573 | $ 375,277,822 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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 ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | ||
Sales of systems | $ 24,083,232 | $ 18,868,632 |
Contingent rental income | 272,268 | 790,437 |
Total revenue | 24,355,500 | 19,659,069 |
Cost of sales | ||
Cost of systems and contingent rental income | 21,138,645 | 14,585,462 |
Total cost of sales | 21,138,645 | 14,585,462 |
Gross profit | 3,216,855 | 5,073,607 |
Interest income on sales-type leases | 22,998,834 | 26,458,713 |
Total operating income | 26,215,689 | 31,532,320 |
Operating expenses | ||
General and administrative | 2,308,608 | 3,494,711 |
Total operating expenses | 2,308,608 | 3,494,711 |
Income from operations | 23,907,081 | 28,037,609 |
Non-operating income (expenses) | ||
Interest income | 161,086 | 192,812 |
Interest expense | (3,217,689) | (3,431,241) |
Gain on systems repurchase from Jitie and Datong | 4,521,443 | 0 |
Loss on sale of construction in progress of Tangshan Rongfeng | (3,780,138) | 0 |
Other income | 20,755 | 1,037,279 |
Total non-operating expenses, net | (2,294,543) | (2,201,150) |
Income before income tax | 21,612,538 | 25,836,459 |
Income tax expense | 3,244,695 | 6,111,267 |
Income before noncontrolling interest | 18,367,843 | 19,725,192 |
Less: loss attributable to noncontrolling interest | (29,582) | (86,730) |
Net income attributable to China Recycling Energy Corporation | 18,397,425 | 19,811,922 |
Other comprehensive items | ||
Foreign currency translation loss attributable to China Recycling Energy Corporation | (12,776,823) | (222,265) |
Foreign currency translation loss attributable to noncontrolling interest | (13,606) | (1,588) |
Comprehensive income attributable to China Recycling Energy Corporation | 5,620,602 | 19,589,657 |
Comprehensive loss attributable to noncontrolling interest | $ (43,188) | $ (88,318) |
Basic weighted average shares outstanding | 83,081,158 | 69,627,116 |
Diluted weighted average shares outstanding | 83,081,158 | 69,627,116 |
Basic earnings per share | $ 0.22 | $ 0.28 |
Diluted earnings per share | $ 0.22 | $ 0.28 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Income including noncontrolling interest | $ 18,367,843 | $ 19,725,192 |
Adjustments to reconcile income including noncontrolling interest to net cash provided by (used in) operating activities: | ||
Changes in sales type leases receivables | 0 | (18,868,632) |
Shares issued for the cost of system purchase | 0 | 14,491,450 |
Depreciation and amortization | 26,038 | 20,931 |
Amortization of prepaid loan fees | 0 | 207,550 |
Stock option expense | 9,390 | 0 |
Stock compensation for IR service | 0 | 187,500 |
Investment income | (184,160) | (20,739) |
Changes in deferred tax | (1,252,455) | 1,055,464 |
Loss on sale of construction in progress of Tangshan Rongfeng | 3,780,138 | 0 |
Loss on disposal of property and equipment | 0 | 127 |
Changes in assets and liabilities: | ||
Interest receivable on sales type leases | 378,307 | (211,447) |
Collection of principal on sales type leases | 50,239,283 | 21,675,548 |
Prepaid expenses | (295,539) | 90,489 |
Accounts receivable | (16,039,444) | 54,767 |
Other receivables | 598,195 | 865,198 |
Construction in progress | 9,300,928 | (70,645,162) |
Accounts payable | 343,704 | (7,021,743) |
Taxes payable | (1,464,907) | 1,054,964 |
Interest payable on entrusted loans | 0 | (1,584) |
Refundable deposit from customers for systems leasing | 0 | 488,353 |
Accrued liabilities and other payables | 104,145 | 1,731,604 |
Net cash provided by (used in) operating activities | 63,911,466 | (35,120,170) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Changes of restricted cash | (1,178,473) | 2,278,980 |
Acquisition of property and equipment | (19,842) | (2,165) |
Net cash (used in) provided by investing activities | (1,198,315) | 2,276,815 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Notes receivable | 0 | 651,137 |
Proceeds from loans | 6,422,195 | 60,832,479 |
Repayment of loans | (58,498,170) | (15,830,769) |
Long term payable | (2,359,225) | (1,405,711) |
Proceeds from shares issued | 0 | 18,918,173 |
Advance from related parties | 3,211 | (2,361,837) |
Net cash (used in) provided by financing activities | (54,431,989) | 60,803,472 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS | (2,402,804) | 209,383 |
NET INCREASE IN CASH AND EQUIVALENTS | 5,878,358 | 28,169,500 |
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 35,871,030 | 7,701,530 |
CASH AND EQUIVALENTS, END OF PERIOD | 41,749,388 | 35,871,030 |
Supplemental cash flow data: | ||
Income tax paid | 6,226,976 | 3,990,323 |
Interest paid | $ 16,355,968 | $ 13,834,312 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Paid-in Capital [Member] | Shares To Be Issued [Member] | Statutory Reserves [Member] | Other Comprehensive Income [Member] | Accumulated Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2013 | $ 154,676,411 | $ 60,910 | $ 78,130,053 | $ 0 | $ 9,672,754 | $ 16,209,403 | $ 50,603,291 | $ 345,117 |
Balance (in shares) at Dec. 31, 2013 | 60,910,058 | |||||||
Shares issued for system purchase | 14,491,451 | $ 8,234 | 14,483,217 | 0 | 0 | 0 | 0 | 0 |
Shares issued for system purchase (in shares) | 8,233,779 | |||||||
Cashless exercise of stock options | 0 | $ 36 | (36) | 0 | 0 | 0 | 0 | 0 |
Cashless exercise of stock options (in shares) | 36,124 | |||||||
Shares purchased by officer | 18,918,173 | $ 13,829 | 18,904,344 | 0 | 0 | 0 | 0 | 0 |
Shares purchased by officer (in shares) | 13,829,074 | |||||||
Shares to be issued for IR service | 187,500 | $ 0 | 0 | 187,500 | 0 | 0 | 0 | 0 |
Shares to be issued for IR service (in shares) | 0 | |||||||
Net income for year | 19,811,922 | $ 0 | 0 | 0 | 0 | 0 | 19,811,922 | (86,730) |
Transfer to statutory reserves | 0 | 0 | 0 | 0 | 2,215,416 | 0 | (2,215,416) | 0 |
Foreign currency translation gain | (222,265) | 0 | 0 | 0 | 0 | (222,265) | 0 | (1,588) |
Balance at Dec. 31, 2014 | 207,863,192 | $ 83,009 | 111,517,578 | 187,500 | 11,888,170 | 15,987,138 | 68,199,797 | 256,799 |
Balance (in shares) at Dec. 31, 2014 | 83,009,035 | |||||||
Shares to be issued for IR service | 0 | $ 75 | 187,425 | (187,500) | 0 | 0 | 0 | 0 |
Shares to be issued for IR service (in shares) | 75,000 | |||||||
Issuance of stock options | 9,390 | $ 0 | 9,390 | 0 | 0 | 0 | 0 | 0 |
Net income for year | 18,397,425 | 0 | 0 | 0 | 0 | 0 | 18,397,425 | (29,582) |
Transfer to statutory reserves | 0 | 0 | 0 | 0 | 1,935,619 | 0 | (1,935,619) | 0 |
Foreign currency translation gain | (12,776,823) | 0 | 0 | 0 | 0 | (12,776,823) | 0 | (13,606) |
Balance at Dec. 31, 2015 | $ 213,493,182 | $ 83,084 | $ 111,714,392 | $ 0 | $ 13,823,789 | $ 3,210,315 | $ 84,661,602 | $ 213,611 |
Balance (in shares) at Dec. 31, 2015 | 83,084,035 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 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, 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”). On March 24, 2014, Xi’an TCH incorporated a new subsidiary, Zhongxun Energy Investment (Beijing) Co., Ltd (“Zhongxun”), with registered capital of $ 5,695,502 35,000,000 100 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 20 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 (“BMPG”) 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 15 On September 11, 2013, Xi’an TCH entered into a BMPG 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 12MW BMPG systems with completion of system transformation for a purchase price of RMB 100 16.48 8,766,547 1.87 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 7MW capacity waste heat power generation (“WHPG”) system, an integral part of the facilities designed to produce 80,000 100 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 (“LOI”) 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 10,937,500 70 286,000 1,800,000 11 On October 8, 2012, Xi’an TCH entered into a LOI 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 12 11.1 68 239,000 1.5 9.5 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 3MW Blast Furnace Power Recovery Turbine (the “BPRT”) systems and, one 15MW Waste Gas Power Generation (“WGPG”) system with a total of 21 28.6 180 30 The service fee was based on an average of 8,000 electricity-generating hours per year and $0.05 (RMB 0.33) per kilowatt hour (“kWh”) for the first five years from the completion of each power generation station. For each of the leases, at the 6th, 11th and 21st year anniversary of the date of the lease, the rates will change to RMB 0.3 kWh, 0.27 kWh and 0.25 kWh, respectively. 0.19 1.2 0.18 1.1 0.16 1.0 0.15 0.9 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 ($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 ($40.32 million) with RMB 100 million for two BPRT systems and RMB 150 million for one WGPG system. 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 the date of transfer was $13.37 million. The Company recorded a $2.98 million gain from two BPRT systems as non-operating income and a $3.02 million gain from the WGPG system as gross profit from the sale. 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 MW and a 3 MW turbine power generation system with a total of 10.5 MW power capacity for an estimated total investment of $ 9.71 60 24 300,000 1.8 On June 18, 2015, Xi’an TCH entered into a WHPG system Repurchase Agreement with Jitie. Under the Repurchase Agreement, Jitie repurchased the Jitie Project from Xi’an TCH and paid outstanding energy saving service fees of RMB 1.8 million ($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 transferred to Jitie for a total price of RMB 90 million ($14.73 million). In July 2015, Xi’an TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable on the date of the transfer was $13.10 million. The Company recorded a $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 MW coke oven gas power generation station, which had been converted from a 15 MW coal gangue power generation station from Yida. As consideration for the Transfer Asset, Xi’an TCH was to pay to Yida RMB 115 18.69 2.27 8,233,779 8,233,779 14.49 1.76 On June 28, 2014, Xi’an TCH also entered into a Coke Oven Gas Power Generation Project 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 CDQ and CDQ WHPG 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 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 was completed in the second quarter of 2015 and the project is currently under commissioning tests whichthe Company expects to complete in the second quarter of 2016. 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 Engineering, Procurement and Construction (“EPC”) 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 EPC 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 WHPG 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 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 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 General Contractor Agreement for the Tianyu Project with Xi’an Huaxin New Energy Co., Ltd. (“Huaxin”). Zhonghong, as the owner of the Tianyu Project, contracted EPC 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 and CDQ WHPG systems 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 WHPG 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. 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 and a CDQ WHPG system and sell the power to Rongfeng. The construction period of the Project is expected to be 18 months after the Agreement takes effect and from the date when conditions are ready for construction to begin. On November 16, 2015, Xi’an TCH entered into a Transfer Agreement of CDQ and a CDQ WHPG system with Rongfeng and Xi’an Huaxin New Energy Co., Ltd., a limited liability company incorporated in China (“Xi’an Huaxin”). The Transfer Agreement provided for the sale to Rongfeng of the CDQ Waste Heat Power Generation Project (the "Project") from Xi’an TCH. Additionally, Xi’an TCH would transfer to Rongfeng the Engineering, Procurement and Construction (“EPC”) Contract for the CDQ Waste Heat Power Generation Project which Xi’an TCH had entered into with Xi’an Huaxin in connection with the Project. As consideration for the transfer of the Project, Rongfeng is to pay to Xi’an TCH an aggregate purchase price of RMB 165,200 25.45 whereby (a) RMB 65,200,000 ($10.05 million) was to be paid by Rongfeng to Xi’an TCH within 20 business days after signing the Transfer Agreement, (b) RMB 50,000,000 ($7.70 million) is to be paid by Rongfeng to Xi’an TCH within 20 business days after the Project is completed, but no later than March 31, 2016 and (c) RMB 50,000,000 ($7.70 million) will be paid by Rongfeng to Xi’an TCH no later than September 30, 2016. 3.78 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 agreed to design, build and maintain a CDQ 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”). 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. Baoliyuan couldterminate the Agreement prior to the end of the term by providing Xi’an TCH with 60 days' notice and upon the payment of 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 required blasting and leveling of a mountain and Baoliyuan could not obtain all the necessary permits for the construction from the local government due to environmetnal concerns of the government. On March 24, 2014, Xi’an TCH incorporated a new subsidiary, Zhongxun Energy Investment (Beijing) Co., Ltd (“Zhongxun”) with registered capital of $ 5,695,502 35,000,000 100 Summary of Sales-Type Lease at December 31, 2015 Status at December 31, 2015 As of December 31, 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). In addition, as of December 31, 2015, Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five systems) for a term of 20 years. Asset Repurchase Agreement During the years ended December 31, 2015 and 2014, the Company entered into the following Asset Repurchase Agreements: On September 24, 2014, Xi’an TCH entered into an Assets Repurchase Agreement for the Furnace Top Gas Recovery Turbine (“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 agreed 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 agreed to repurchase the Systems from Xi’an TCH and pay outstanding energy saving service fees of RMB 1.2 193,548 250 40.32 100 150 24.54 13.37 2.98 3.02 On June 18, 2015, Xi’an TCH entered into a WHPG system Repurchase Agreement with Jitie. Under the Repurchase Agreement, Jitie agreed to repurchase the Jitie Project from Xi’an TCH and pay outstanding energy saving service fees of RMB 1.8 million ($294,599) to Xi’an TCH within five working days from the execution of the Repurchase Agreement on June 18, 2015. The Jitie Project would be transferred to Jitie for a total price of RMB 90 million ($14.73 million), and Jitie agreed 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. As of June 30, 2015, Xi’an TCH received 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 a $1.62 million gain from this transaction. On November 16, 2015, Xi’an TCH entered into a Transfer Agreement of CDQ and a CDQ WHPG system with Rongfeng and Xi’an Huaxin New Energy Co., Ltd., a limited liability company incorporated in China (“Xi’an Huaxin”). The Transfer Agreement provided for the sale to Rongfeng of the CDQ Waste Heat Power Generation Project (the "Project") from Xi’an TCH. Additionally, Xi’an TCH agreed to transfer to Rongfeng the Engineering, Procurement and Construction (“EPC”) Contract for the CDQ Waste Heat Power Generation Project which Xi’an TCH had entered into with Xi’an Huaxin in connection with the Project. As consideration for the transfer of the Project, Rongfeng will pay to Xi’an TCH an aggregate purchase price of RMB 165,200, 000 ($25.45 million), whereby (a) RMB 65,200,000 ($10.05 million) will be paid by Rongfeng to Xi’an TCH within 20 business days after the Transfer Agreement is signed, (b) RMB 50,000,000 ($7.70 million) will be paid by Rongfeng to Xi’an TCH within 20 business days after the Project is completed, but no later than March 31, 2016 and (c) RMB 50,000,000 ($7.70 million) will be paid by Rongfeng to Xi’an TCH no later than September 30, 2016. Mr. Cheng Li, the largest shareholder of Rongfeng, will personally guarantee the payments. The ownership of the Project will conditionally be possessed by Rongfeng within 3 business days following the initial payment of RMB 65,200,000 ($10.05 million) by Rongfeng to Xi’an TCH and the full ownership of the Project will be officially transferred to Rongfeng after it completes the entire payment pursuant to the Transfer Agreement. As of December 31, 2015, Xi’an TCH received the first payment of $ 10.05 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the SEC for annual financial statements. 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 90 100 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. 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 includes cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of December 31, 2015 and 2014, the Company had accounts receivable of $ 15,399,778 16,330 Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts. Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC. Property and equipment 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. Building 20 years Vehicles 2 - 5 years Office and Other Equipment 2 - 5 years Software 2 - 3 years In accordance with FASB ASC Topic 360, “Property, Plant, and Equipment The Company endorses banker's acceptances that are issued from a bank to vendors as payment for its obligations. Most of the banker's acceptances have maturity dates of less than six months following their issuance. 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. The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes,” Under FASB ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 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 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. In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” 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 December 31, 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 $ 18.19 58.83 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 December 31, 2015 and 2014, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. The Company accounts for its stock-based compensation in accordance with FASB ASC Topic 718 “CompensationStock Compensation,” Equity.” The Company presents net income (loss) per share (“EPS”) in accordance with FASB ASC Topic 260, “Earning Per Share.” 2015 2014 Net income $ 18,397,425 $ 19,811,922 Weighted average shares outstanding basic 83,081,158 69,627,116 Effect of dilutive securities: Options granted - - Weighted average shares outstanding diluted 83,081,158 69,627,116 Earnings per share basic $ 0.22 $ 0.28 Earnings per share diluted $ 0.22 $ 0.28 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.” FASB ASC Topic 280, “Segment Reporting,” 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. 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. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes". The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not anticipate the adoption of this ASU will have a significant impact on its consolidated financial position, results of operations, or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The guidancein ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). ASU 2016-02requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases,along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginningafter December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect thisstandard will have on its Consolidated Financial Statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | 3. RESTRICTED CASH Restricted cash is held by the banks as collateral to issue bank acceptances and bank loans. The Company endorses bank acceptances to vendors as payment of its obligations. Most of the bank acceptances have maturities of less than six (6) months. As of December 31, 2015 and 2014, the Company had restricted cash of $ 1.13 0 |
INVESTMENT IN SALES-TYPE LEASES
INVESTMENT IN SALES-TYPE LEASES, NET | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
INVESTMENT IN SALES-TYPE LEASES, NET | 4. 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 December 31, 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. 2015 2014 Total future minimum lease payments receivable $ 387,612,418 $ 583,820,886 Less: executory cost (93,054,738) (134,771,919) Less: unearned interest income (154,799,027) (268,028,368) Investment in sales-type leases, net 139,758,653 181,020,599 Current portion 6,679,019 6,561,984 Noncurrent portion $ 133,079,634 $ 174,458,615 2016 $ 33,679,315 2017 32,524,332 2018 32,524,332 2019 32,524,332 2020 32,524,332 Thereafter 223,835,775 Total $ 387,612,418 |
PREPAID EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES | 5. PREPAID EXPENSES Prepaid expenses mainly consisted of prepayment for office rental and decorations, taxes, and consulting fees for the Company’s HYREF fund completed in July 2013. Before the HYREF Fund released the money to Zhonghong, Xi'an TCH paid 2 9.2 1.5 2 0.83 0.88 0.30 |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | 6. OTHER RECEIVABLES As of December 31, 2015, other receivables mainly consisted of 1) advance to third parties of $ 0.05 0.04 0.47 0.56 0.04 0.1 |
LONG TERM INVESTMENT
LONG TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Investments [Abstract] | |
LONG TERM INVESTMENT | 7. 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 20 184,160 100 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 million ($ 0.83 46.67 100 16.67 75 12.5 460 75.0 16.3 75 12.2 |
CONSTRUCTION IN PROGRESS
CONSTRUCTION IN PROGRESS | 12 Months Ended |
Dec. 31, 2015 | |
Receivables, Long-Term Contracts Or Programs [Abstract] | |
CONSTRUCTION IN PROGRESS | 8. CONSTRUCTION IN PROGRESS 2015 2014 Shanxi Datong Coal Group on 15MW WGPG $ - $ 18,431,457 Xuzhou Zhongtai 28,100,201 26,573,828 Tangshan Rongfeng - 28,373,387 Xuzhou Huayu 29,752,270 28,510,731 Xuzhou Tian’an 26,909,193 25,697,884 Boxing County Chengli 30,760,404 26,753,340 Total $ 115,522,068 $ 154,340,627 As of December 31, 2015, the Company was committed to pay an additional 1) $ 7.34 7.70 9.24 6.57 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | 9. TAXES PAYABLE 2015 2014 Income $ 405,431 $ 1,872,995 Business 249,141 306,848 VAT arising from transfer WGPG to Shenmu 369,595 392,221 Other 34,250 42,247 Total $ 1,058,417 $ 2,614,311 |
ACCRUED LIABILITIES AND OTHER P
ACCRUED LIABILITIES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 10. ACCRUED LIABILITIES AND OTHER PAYABLES 2015 2014 Employee training, labor union expenditure and social insurance payable $ 749,930 $ 693,969 Consulting, auditing, and legal expenses 1,342,395 537,973 Accrued payroll and welfare 278,819 304,512 Accrued interest expense 682,949 1,439,770 Other 145,302 274,520 Total $ 3,199,395 $ 3,250,744 |
DEFERRED TAX LIABILITY, NET
DEFERRED TAX LIABILITY, NET | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Tax [Abstract] | |
DEFERRED TAX LIABILITY, NET | 11. 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) $ 98,372 $ 89,114 Deferred tax liability current (net investment in sales-type leases) (1,636,477) (1,124,451) Deferred tax liability, net of deferred tax asset current $ (1,538,105) $ (1,035,337) Deferred tax asset noncurrent (depreciation of fixed assets) $ 22,498,560 $ 30,310,142 Deferred tax liability noncurrent (net investment in sales-type leases) (33,269,908) (43,612,679) Deferred tax liability, net of deferred tax asset noncurrent $ (10,771,348) $ (13,302,537) |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | 12. 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 In the fourth quarter of 2015, three power stations of Erduo TCH were pledged to Industrial Bank as an additional guarantee for the loan lent to Zhonghong’s three CDQ WHPG systems. 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: ⋅ During the first three years from the first release of the loan, the balance in its account shall be no less than RMB 7.14 million ($1.19 million) on the 20th day of the second month of each quarter and no less than RMB 14.28 million ($2.38 million) on the 14th day of the last month of each quarter ⋅ During the fourth year from the first release of the loan, the balance in its account shall be no less than RMB 1.92 million ($0.32 million) on the 20th day of the second 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 ⋅ 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 second month of each quarter and no less than RMB 192,500 ($32,080) on the 14th day of the last month of each quarter The term of this loan is for 60 months from July 31, 2013 to July 30, 2018. On August 6, 2016, Zhonghong shall repay principal in the amount of RMB 280 45.54 100 16.27 77 12.52 12.5 70.38 11.55 11.55 475,004 8.82 1,377,731 7.96 Bank Loans - Industrial Bank On November 8, 2011, Xi’an TCH entered into a loan agreement with the Industrial Bank for energy saving and emission reduction projects, whereby the Lender agreed to loan $ 21.04 130 115 7.36 1,618,463 10 On October 9, 2013, Xi’an TCH entered the second 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 On June 26, 2015, Xi’an TCH entered into another loan agreement with Bank of Xi’an, whereby Bank of Xi’an agreed to loan $ 6.29 40 0.595 149,341 950,000 6.16 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 April 10, 2017 9.225 0.81 5 th 7.32 45 155,280 950,000 2.85 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 15.34 The Zhongtai Loan has a term of four years. The annual interest rate for the first 24 months of the loan is 12%. ZRIT has the right to adjust the interest rate according to the market conditions after 24 months and Xi'an TCH has the right to prepay the Zhongtai Loan before maturity, if Xi’an TCH does not agree to such adjustment of interest rate. ZRIT has the right to request repayment of all principal and interest of the Zhongtai Loan on the two year 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 The Rongfeng Loan has a term of four years. The annual interest rate for the first 24 months of the loan is 12%. ZRIT has the right to adjust the interest rate according to the market conditions after 24 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 two year 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 year ended December 31, 2015, the Company capitalized $ 2.71 Summary 2016 $ 49,279,290 2017 24,371,688 2018 9,523,223 Total $ 83,174,201 |
LONG TERM PAYABLE - FINANCING A
LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION | 13. 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 0 207,550 1,275,000 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 | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING | 14. REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING The refundable deposit was mainly for Pucheng, Shenqiu and Yida systems. As of December 31, 2015 and 2014, the balance of refundable deposit from customers for systems leasing was $ 1,555,378 1,650,597 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS On March 1, 2014, Xi’an TCH entered a loan agreement with a major shareholder and the Company's Chairman and CEO, pursuant to which the Chairman and CEO of the Company will loan the Company, from time to time, up to RMB 80 13 0 44,059 0 40,954 On August 27, 2014, the Company entered into a Share Purchase Agreement (the “Agreement”) with the Chairman and CEO of the Company. Pursuant to the Agreement, the Company issued to the Chairman and CEO of the Company, 13,829,074 15 1.37 12 6.91 74.05 42.85 1.49 180 During the year ended December 31, 2015, the Company received RMB 30.47 4.89 During the year ended December 31, 2015, the Company received RMB 33.34 5.35 |
NONCONTROLLING INTEREST
NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTEREST | 16. 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 7, which resulted in an additional indirect ownership of Xi’an TCH in Zhonghong of 1.7% 8.3 29,582 86,730 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 17. 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 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 December 31, 2015, had net operating loss (“NOL”) carry forwards for income taxes of $ 14.36 20 100 Consolidated foreign pretax earnings approximated $ 22.38 27.30 114.90 23.22 2015 2014 US statutory rates 34.0 % 34.0 % Tax rate difference current provision (9.3) % (9.5) % Effective tax holiday (7.2) % (8.0) % Prior periods income tax adjustment per income tax return filed (1.8) % 1.4 % Other (2.0) % 0.4 % Effect of tax rate change on deferred tax items - % 3.5 % Valuation allowance on PRC NOL 0.1 % - % Valuation allowance on US NOL 1.2 % 1.9 % Tax per financial statements 15.0 % 23.7 % 2015 2014 Income tax expense current $ 4,497,150 $ 5,055,803 Income tax expense (benefit) - deferred (1,252,455) 1,055,464 Total income tax expense $ 3,244,695 $ 6,111,267 |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLAN | 18. STOCK-BASED COMPENSATION PLAN Options to Employees On November 11, 2009, the Company granted options to two employees for 290,000 2.35 100 3.84 0 518,513 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 Weighted Average Average Remaining Number of Exercise Contractual Shares Price per Share Term in Years Outstanding at January 1, 2014 1,023,333 $ 2.85 1.40 Exercisable at January 1, 2014 1,023,333 2.85 1.40 Granted - - - Exercised - - - Forfeited 290,000 - - Outstanding at December 31, 2014 733,333 $ 3.05 0.62 Exercisable at December 31, 2014 733,333 3.05 0.62 Granted - - - Exercised - - - Forfeited 733,333 3.05 - Outstanding at December 31, 2015 - - - Exercisable at December 31, 2015 - $ - - The Company recorded no compensation expense for stock options to employees during each of the years ended December 31, 2015 and 2014. 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 The Director Stock Options did not include a cashless exercise right clause. On August 20, 2013, the Board approved and provided the Director Recipients cashless exercise elections to the Director Stock Options. The holder of the stock options may elect to receive shares equal to the value (as determined below) of his/her option (or the portion thereof being canceled) according to the following formula: X = Y (A-C) A Where X = the number of shares of common stock to be issued to the holder Y = the number of shares of stock option or, if only a portion of the stock option is being exercised, the portion of the option being canceled A = the Fair Market Value of one share of common stock as defined below C = Stock Option Exercise Price For purposes of the above calculation, the fair market value per share shall be the closing price quoted on the NASDAQ Capital Market for the five (5) trading days prior to the date on which a written notice of such holder’s election to exercise his/her option has been received by the Company. During 2013, one of the Company’s directors exercised 10,000 5,261 60,000 50,000 10,000 36,124 30,575 5,549 On March 31, 2015, the Board appointed Mr. Cangsang Huang as a member of the board of directors to fill a vacancy on the Board and Mr. Huang will serve 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 40,000 Weighted Average Average Remaining Number of Exercise Contractual Shares Price per Share Term in Years Outstanding at January 1, 2014 200,000 $ 2.64 1.05 Exercisable at January 1, 2014 160,000 2.64 0.74 Granted - - - Exercised 60,000 1.85 - Forfeited 60,000 - - Outstanding at December 31, 2014 80,000 $ 3.83 0.31 Exercisable at December 31, 2014 80,000 3.83 0.31 Granted 40,000 1.02 4.77 Exercised - - - Forfeited 80,000 - - Outstanding at December 31, 2015 40,000 1.02 4.77 Exercisable at December 31, 2015 40,000 $ 1.02 4.77 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 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 |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Reserves [Abstract] | |
STATUTORY RESERVES | 19. STATUTORY RESERVES Pursuant to the corporate law of the PRC effective January 1, 2006, the Company is only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. Surplus Reserve Fund The Company’s Chinese subsidiaries are required to transfer 10 50 The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25 Name of Chinese Maximum Statutory Statutory reserve at December Subsidiaries Registered Capital Reserve Amount 31, 2015 Shanghai TCH $ 29,800,000 $ 14,900,000 ¥ 6,564,303 ($959,387) Xi’an TCH ¥ 202,000,000 ¥ 101,000,000 ¥ 64,672,311 ($9,938,025) Erdos TCH ¥ 120,000,000 ¥ 60,000,000 ¥ 19,035,814 ($2,926,377) Xi’an Zhonghong ¥ 30,000,000 ¥ 15,000,000 Did not accrue yet due to accumulated deficit Shaanxi Huahong $ 2,500,300 $ 1,250,150 Did not accrue yet due to accumulated deficit Zhongxun ¥ 35,000,000 ¥ 17,500,000 Did not accrue yet due to accumulated deficit Common Welfare Fund The common welfare fund is a voluntary fund to which the Company can transfer 5 10 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies [Abstract] | |
CONTINGENCIES | 20. 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 each of December 31, 2015 and 2014, Xi’an TCH had outstanding notes receivable of $ 0 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 21. 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 12,110 388,211 402,374 2016 $ 59,462 Total $ 59,462 Construction Commitment Refer to Note 1 for additional details related to lease commitments with Chengli, Tianyu (and its subsidiaries Xuzhou Tian’an and Xuzhou Huayu), and Zhongtai, and Note 8 for commitments on construction in progress. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 22. SUBSEQUENT EVENT In March 2016, Xi’an TCH entered into a Transfer Agreement of CDQ and a CDQ WHPG system with Zhongtai and Xi’an Huaxin. The Transfer Agreement provided for the sale to Zhongtai of the CDQ Waste Heat Power Generation Project from Xi’an TCH. Xi’an TCH agreed to transfer to Zhongtai all the project assets under construction under the Agreement. Additionally, Huaxin should continue to construct and complete the Project and Xi’an agreed to transfer all its rights and obligation under the “EPC” Contract to Zhongtai. As consideration for the transfer of the Project, Zhongtai should pay to Xi’an an aggregate transfer price of RMB 167,360,000 25.77 152,360,000 23.46 15,000,000 2.31 (a) RMB 50,000,000 ($7.70 million) should be paid by Zhongtai to Xi’an TCH within 20 business days after the Transfer Agreement is signed, (b) RMB 30,000,000 ($4.62 million) will be paid by Zhongtai to Xi’an TCH within 20 business days after the Project is completed, but no later than July 30, 2016 and (c) RMB 87,360,000 ($13.45 million) will be paid by Zhongtai to Xi’an TCH no later than July 30, 2017. 50,000,000 7.70 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the SEC for annual financial statements. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of CREG and its subsidiary, Sifang Holdings, its wholly owned subsidiaries, Huahong New Energy Technology Co., Ltd. (“Huahong”) and Shanghai TCH, Shanghai TCH’s wholly-owned subsidiary, Xi’an TCH Energy Tech Co., Ltd. (“Xi’an TCH”) and Xi’an TCH’s subsidiaries, Erdos TCH Energy Saving Development Co., Ltd (“Erdos TCH”), 100 90 100 |
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 months or less as of the purchase date of such investments. |
Accounts Receivable | Accounts Receivable As of December 31, 2015 and 2014, the Company had accounts receivable of $ 15,399,778 16,330 |
Concentration of Credit Risk | Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts. Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. 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 |
Notes Payable Banker Acceptances | Notes Payable Banker's Acceptances The Company endorses banker's acceptances that are issued from a bank to vendors as payment for its obligations. Most of the banker's acceptances have maturity dates of less than six months following their issuance. |
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. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes,” Under FASB ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 |
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 comprehensive income (loss). Losses attributable to NCIs in a subsidiary may exceed an NCI’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. |
Statement of Cash Flows | Statement of Cash Flows In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” |
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 December 31, 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 $ 18.19 58.83 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 December 31, 2015 and 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 “CompensationStock Compensation,” Equity.” |
Basic and Diluted Earnings per Share | The Company presents net income (loss) per share (“EPS”) in accordance with FASB ASC Topic 260, “Earning Per Share.” 2015 2014 Net income $ 18,397,425 $ 19,811,922 Weighted average shares outstanding basic 83,081,158 69,627,116 Effect of dilutive securities: Options granted - - Weighted average shares outstanding diluted 83,081,158 69,627,116 Earnings per share basic $ 0.22 $ 0.28 Earnings per share diluted $ 0.22 $ 0.28 |
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 | FASB ASC Topic 280, “Segment Reporting,” |
Reclassification | 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. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results of operations, or cash flows. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes". The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not anticipate the adoption of this ASU will have a significant impact on its consolidated financial position, results of operations, or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The guidancein ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). ASU 2016-02requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases,along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginningafter December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect thisstandard will have on its Consolidated Financial Statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment Estimated Lives | 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 | 2015 2014 Net income $ 18,397,425 $ 19,811,922 Weighted average shares outstanding basic 83,081,158 69,627,116 Effect of dilutive securities: Options granted - - Weighted average shares outstanding diluted 83,081,158 69,627,116 Earnings per share basic $ 0.22 $ 0.28 Earnings per share diluted $ 0.22 $ 0.28 |
INVESTMENT IN SALES-TYPE LEAS31
INVESTMENT IN SALES-TYPE LEASES, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Components of Net Investment in Sales-Type Leases | The components of the net investment in sales-type leases as of December 31, 2015 and 2014 are as follows: 2015 2014 Total future minimum lease payments receivable $ 387,612,418 $ 583,820,886 Less: executory cost (93,054,738) (134,771,919) Less: unearned interest income (154,799,027) (268,028,368) Investment in sales-type leases, net 139,758,653 181,020,599 Current portion 6,679,019 6,561,984 Noncurrent portion $ 133,079,634 $ 174,458,615 |
Future Minimum Rentals to be Received on Non-Cancelable Sales-Type Leases by Years | As of December 31, 2015, the future minimum rentals to be received on non-cancelable sales-type leases by years are as follows: 2016 $ 33,679,315 2017 32,524,332 2018 32,524,332 2019 32,524,332 2020 32,524,332 Thereafter 223,835,775 Total $ 387,612,418 |
CONSTRUCTION IN PROGRESS (Table
CONSTRUCTION IN PROGRESS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables, Long-Term Contracts Or Programs [Abstract] | |
Schedule of Construction in progress | 2015 2014 Shanxi Datong Coal Group on 15MW WGPG $ - $ 18,431,457 Xuzhou Zhongtai 28,100,201 26,573,828 Tangshan Rongfeng - 28,373,387 Xuzhou Huayu 29,752,270 28,510,731 Xuzhou Tian’an 26,909,193 25,697,884 Boxing County Chengli 30,760,404 26,753,340 Total $ 115,522,068 $ 154,340,627 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | 2015 2014 Income $ 405,431 $ 1,872,995 Business 249,141 306,848 VAT arising from transfer WGPG to Shenmu 369,595 392,221 Other 34,250 42,247 Total $ 1,058,417 $ 2,614,311 |
ACCRUED LIABILITIES AND OTHER34
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Other Payables | Accrued liabilities and other payables consisted of the following as of December 31, 2015 and 2014: 2015 2014 Employee training, labor union expenditure and social insurance payable $ 749,930 $ 693,969 Consulting, auditing, and legal expenses 1,342,395 537,973 Accrued payroll and welfare 278,819 304,512 Accrued interest expense 682,949 1,439,770 Other 145,302 274,520 Total $ 3,199,395 $ 3,250,744 |
DEFERRED TAX LIABILITY, NET (Ta
DEFERRED TAX LIABILITY, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Tax [Abstract] | |
DEFERRED TAX LIABILITY, NET | As of December 31, 2015 and 2014, deferred tax liability consisted of the following: 2015 2014 Deferred tax asset current (accrual of employee social insurance) $ 98,372 $ 89,114 Deferred tax liability current (net investment in sales-type leases) (1,636,477) (1,124,451) Deferred tax liability, net of deferred tax asset current $ (1,538,105) $ (1,035,337) Deferred tax asset noncurrent (depreciation of fixed assets) $ 22,498,560 $ 30,310,142 Deferred tax liability noncurrent (net investment in sales-type leases) (33,269,908) (43,612,679) Deferred tax liability, net of deferred tax asset noncurrent $ (10,771,348) $ (13,302,537) |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Future Minimum Payment to be made by Years | As of December 31, 2015, the future minimum repayment of all the loans including the entrusted loan to be made by years is as follows: 2016 $ 49,279,290 2017 24,371,688 2018 9,523,223 Total $ 83,174,201 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of U.S. Statutory Rates to Effective Tax Rate | 2015 2014 US statutory rates 34.0 % 34.0 % Tax rate difference current provision (9.3) % (9.5) % Effective tax holiday (7.2) % (8.0) % Prior periods income tax adjustment per income tax return filed (1.8) % 1.4 % Other (2.0) % 0.4 % Effect of tax rate change on deferred tax items - % 3.5 % Valuation allowance on PRC NOL 0.1 % - % Valuation allowance on US NOL 1.2 % 1.9 % Tax per financial statements 15.0 % 23.7 % |
Provision for Income Tax Expenses | The provision for income taxes expense for the years ended December 31, 2015 and 2014 consisted of the following: 2015 2014 Income tax expense current $ 4,497,150 $ 5,055,803 Income tax expense (benefit) - deferred (1,252,455) 1,055,464 Total income tax expense $ 3,244,695 $ 6,111,267 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Stock Option [Member] | |
Summary of Option Activity | The following table summarizes activity for employees in the Company’s Plan: Weighted Average Average Remaining Number of Exercise Contractual Shares Price per Share Term in Years Outstanding at January 1, 2014 1,023,333 $ 2.85 1.40 Exercisable at January 1, 2014 1,023,333 2.85 1.40 Granted - - - Exercised - - - Forfeited 290,000 - - Outstanding at December 31, 2014 733,333 $ 3.05 0.62 Exercisable at December 31, 2014 733,333 3.05 0.62 Granted - - - Exercised - - - Forfeited 733,333 3.05 - Outstanding at December 31, 2015 - - - Exercisable at December 31, 2015 - $ - - |
Independent Directors Compensation Plan [Member] | |
Summary of Option Activity | The following table summarizes option activity with respect to the independent directors: Weighted Average Average Remaining Number of Exercise Contractual Shares Price per Share Term in Years Outstanding at January 1, 2014 200,000 $ 2.64 1.05 Exercisable at January 1, 2014 160,000 2.64 0.74 Granted - - - Exercised 60,000 1.85 - Forfeited 60,000 - - Outstanding at December 31, 2014 80,000 $ 3.83 0.31 Exercisable at December 31, 2014 80,000 3.83 0.31 Granted 40,000 1.02 4.77 Exercised - - - Forfeited 80,000 - - Outstanding at December 31, 2015 40,000 1.02 4.77 Exercisable at December 31, 2015 40,000 $ 1.02 4.77 |
STATUTORY RESERVES (Tables)
STATUTORY RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Reserves [Abstract] | |
STATUTORY RESERVES | Name of Chinese Maximum Statutory Statutory reserve at December Subsidiaries Registered Capital Reserve Amount 31, 2015 Shanghai TCH $ 29,800,000 $ 14,900,000 ¥ 6,564,303 ($959,387) Xi’an TCH ¥ 202,000,000 ¥ 101,000,000 ¥ 64,672,311 ($9,938,025) Erdos TCH ¥ 120,000,000 ¥ 60,000,000 ¥ 19,035,814 ($2,926,377) Xi’an Zhonghong ¥ 30,000,000 ¥ 15,000,000 Did not accrue yet due to accumulated deficit Shaanxi Huahong $ 2,500,300 $ 1,250,150 Did not accrue yet due to accumulated deficit Zhongxun ¥ 35,000,000 ¥ 17,500,000 Did not accrue yet due to accumulated deficit |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Required Under Operating Leases | 2016 $ 59,462 Total $ 59,462 |
ORGANIZATION AND DESCRIPTION 41
ORGANIZATION AND DESCRIPTION OF BUSINESS (Narrative) (Details) | Dec. 12, 2013 | Dec. 06, 2013 | Sep. 11, 2013USD ($)$ / sharesshares | Sep. 11, 2013CNY (¥) | Jun. 10, 2013USD ($) | Jun. 10, 2013CNY (¥) | Oct. 08, 2012USD ($)MW | Oct. 08, 2012CNY (¥)MW | Apr. 14, 2009CNY (¥) | Jun. 18, 2015 | May. 29, 2015USD ($) | Dec. 22, 2014USD ($) | Dec. 22, 2014CNY (¥) | Sep. 24, 2014USD ($) | Sep. 24, 2014CNY (¥) | Mar. 26, 2014USD ($) | Mar. 26, 2014CNY (¥) | Mar. 24, 2014USD ($) | Nov. 16, 2013USD ($) | Nov. 16, 2013CNY (¥) | Jul. 31, 2013USD ($) | Jul. 24, 2013 | Jul. 19, 2013USD ($) | Jul. 19, 2013CNY (¥) | Jul. 18, 2013USD ($) | Jun. 30, 2013 | Jun. 25, 2013USD ($) | Jun. 15, 2013USD ($) | May. 31, 2013USD ($)MW | May. 31, 2013CNY (¥)MW | Sep. 28, 2011USD ($)MW | Sep. 28, 2011CNY (¥)MW | Feb. 28, 2011CNY (¥)MW | Sep. 30, 2010 | Jun. 29, 2010USD ($)MW | Jun. 29, 2010CNY (¥)MW | Dec. 31, 2015USD ($)MW | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2015CNY (¥) | May. 29, 2015CNY (¥) | Dec. 22, 2014CNY (¥) | Sep. 24, 2014CNY (¥) | Aug. 27, 2014$ / shares | Jun. 28, 2014USD ($)$ / sharesshares | Jun. 28, 2014CNY (¥)shares | Mar. 24, 2014CNY (¥) | 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 ($) | May. 25, 2011CNY (¥) | Feb. 28, 2011USD ($) | Feb. 28, 2011CNY (¥) | Apr. 14, 2009USD ($) | Apr. 14, 2009CNY (¥) |
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contract Price For Materials Equipment | $ 40,320,000 | ¥ 250,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Security Deposit | $ 338,079 | ¥ 2,130,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Investment Income Receivable | 13,370,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Price | $ / shares | $ 1.49 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Ownership Percentage | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Lease Term | (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 December 31, 2015, Erdos TCH leased power and steam generating systems from waste heat from metal refining to Erdos (five systems) for a term of 20 years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 payment term is 20 years. For the first 10 years, Rongfeng shall pay an energy saving service fee at RMB 0.582 ($0.095) per kilowatt hour (including tax) for the power generated from the system. For the second 10 years, 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, Xian 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 950C. 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 Xian TCH a 60 day notice and pay the termination fee and compensation for the damages to Xian 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: 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 10 years). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zhongtai [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Contract for Purchase of Electric Power, Description | The construction period of the Project is expected to be 18 months from the date when conditions are ready for construction to begin. Zhongtai will start to pay an energy saving service fee from the date when the WHPG station passes the required 72 hour test run. The payment term is 20 years. For the first 10 years, Zhongtai shall pay an energy saving service fee at RMB 0.534 ($0.089) per kilowatt hour (including value added tax) for the power generated from the system. For the second 10 years, 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 Xian 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, Xian 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 950C. 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 Xian TCH a 60 day notice and pay the termination fee and compensation for the damages to Xian TCH according to the following formula: 1) if it is less than five years into the term when Zhongtai requests termination, Zhongtai shall pay: Xian TCHs total investment amount plus Xian TCHs annual investment return times five years minus the years in which the system has already operated); or 2) if it is more than five years into the term when Zhongtai requests the termination, Zhongtai shall pay: Xian TCHs total investment amount minus total amortization cost (the amortization period is 10 years). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baoliyuan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Contract for Purchase of Electric Power, Description | The construction period of the CDQ Project was expected to be 15 months from the effective date of the Agreement. Baoliyuan agreed to pay an energy saving fee from the date when the WHPG station passed the required 72 hour test run. The payment term was twenty years and Baoliyuan agreed 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 15 months from the effective date of the Agreement. Baoliyuan agreed to pay an energy saving fee from the date when the WHPG station passed the required 72 hour test run. The payment term was twenty years and Baoliyuan agreed 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 | ¥ | ¥ 1,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Repurchase Price | 179,000 | ¥ 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BPRT Systems [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contract Price For Materials Equipment | ¥ | ¥ 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WGPG Systems [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contract Price For Materials Equipment | 3,020,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase price for Power Generation Systems | $ 24,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ 4,370,000 | ¥ 27,000,000 | $ 243,902 | ¥ 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 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] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity Of Plant | MW | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Contract for Purchase of Electric Power, Description | The service fee was based on an average of 8,000 electricity-generating hours per year and $0.05 (RMB 0.33) per kilowatt hour (kWh) for the first five years from the completion of each power generation station. For each of the leases, at the 6th, 11th and 21st year anniversary of the date of the lease, the rates will change to RMB 0.3 kWh, 0.27 kWh and 0.25 kWh, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Power Generation Servicing Fee Description | 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 ($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 ($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 a $2.98 million gain from two BPRT systems as non-operating income and a $3.02 million gain from the WGPG system as gross profit from the sale. | 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 BPRT systems and one 15MW 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 ($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 ($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 a $2.98 million gain from two BPRT systems as non-operating income and a $3.02 million gain from the WGPG system as gross profit from the sale. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recycling Economy Project 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 BPRT systems and one 15MW 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 ($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 ($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 a $2.98 million gain from two BPRT systems as non-operating income and a $3.02 million gain from the WGPG system as gross profit from the sale. Jitie Power Generation Projects | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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 was completed in the second quarter of 2015 and the project is currently under commissioning tests whichthe Company expects to complete in the second quarter of 2016. 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] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Contract Price For Materials Equipment | $ 66,680,000 | ¥ 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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 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 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 and CDQ WHPG systems for free. Tianyu also guarantees that it will purchase all of the power generated by the CDQ WHPG systems. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biomass Power Generation System [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity Of Plant | MW | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | Phase One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity Of Plant | MW | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Erdos Metallurgy Company Limited [Member] | Phase Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity Of Plant | MW | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction cost | ¥ 8,000,000 | $ 1,290,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated profit | $ 226,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xian Tch [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment cost | ¥ | ¥ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution percentage in total investment | 93.00% | 93.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit distribution percentage | 20.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Saving Solution And Services Cost | $ 193,548 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of accumulated profit | 20.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minority interest decrease from redemptions | $ 1,290,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 25,450,000 | ¥ 165,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Description | whereby (a) RMB 65,200,000 ($10.05 million) was to be paid by Rongfeng to Xian TCH within 20 business days after signing the Transfer Agreement, (b) RMB 50,000,000 ($7.70 million) is to be paid by Rongfeng to Xian TCH within 20 business days after the Project is completed, but no later than March 31, 2016 and (c) RMB 50,000,000 ($7.70 million) will be paid by Rongfeng to Xian TCH no later than September 30, 2016. | whereby (a) RMB 65,200,000 ($10.05 million) was to be paid by Rongfeng to Xian TCH within 20 business days after signing the Transfer Agreement, (b) RMB 50,000,000 ($7.70 million) is to be paid by Rongfeng to Xian TCH within 20 business days after the Project is completed, but no later than March 31, 2016 and (c) RMB 50,000,000 ($7.70 million) will be paid by Rongfeng to Xian TCH no later than September 30, 2016. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net, Total | $ 3,780,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 10,050,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | Shanxi Datong Coal Group Steel Co Ltd [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment cost | $ 28,600,000 | ¥ 180,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease period | 30 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xian Tch [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ¥ | ¥ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xian Tch [Member] | Qitaihe City Boli Yida Coal Selection Co Ltd Yida [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment cost | $ 18,690,000 | ¥ 115,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issuable For Power Generation Systems | shares | 8,233,779 | 8,233,779 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Security Deposit | ¥ | ¥ 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 | 9 years 6 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zhongbao [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity per year | 80,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Ownership Percentage | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment cost | $ 490,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original investment by subsidiary | $ 5,695,502 | ¥ 35,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Repurchase Price | $ 5,690,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Ownership Percentage | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiant Chenergy Tech Coltd Member [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity Of Plant | MW | 79 | 79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment cost | $ 9,710,000 | ¥ 60,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease period | 24 years | 24 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiant Chenergy Tech Coltd Member [Member] | Sinosteel Jilin Ferroalloys Co Ltd Jitie [Member] | WHPG system Repurchase Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Agreement Term Description | Under the Repurchase Agreement, Jitie repurchased the Jitie Project from Xian TCH and paid outstanding energy saving service fees of RMB 1.8 million ($294,599) to Xian TCH within five working days from the execution of the Repurchase Agreement on June 18, 2015. The Jitie Project was transferred to Jitie for a total price of RMB 90 million ($14.73 million). In July 2015, Xian TCH received the payment in full and the systems were transferred. The outstanding balance of net investment receivable on the date of the transfer was $13.10 million. The Company recorded a $1.62 million gain from this transaction. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiant Chenergy Tech Coltd Member [Member] | Hongyuan Huifu [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original investment by subsidiary | $ 650,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiant Chenergy Tech Coltd Member [Member] | Qitaihe City Boli Yida Coal Selection Co Ltd Yida [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Security Deposit | $ 490,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zhongxun [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Nature Of Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original investment by subsidiary | $ 5,695,502 | ¥ 35,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 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 ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic and Diluted Earnings per Share) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation Of Basic and Diluted Earnings [Line Items] | ||
Net income | $ 18,397,425 | $ 19,811,922 |
Weighted average shares outstanding - basic | 83,081,158 | 69,627,116 |
Effect of dilutive securities: | ||
Options granted | 0 | 0 |
Weighted average shares outstanding - diluted | 83,081,158 | 69,627,116 |
Earnings per share - basic | $ 0.22 | $ 0.28 |
Earnings per share - diluted | $ 0.22 | $ 0.28 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Significant Accounting Policies [Line Items] | ||
Accounts receivable | $ 15,399,778 | $ 16,330 |
Bank loans payable [Member] | ||
Significant Accounting Policies [Line Items] | ||
Sale leaseback transaction, amount due under financing arrangement | $ 18,190,000 | 67,410,000 |
Xi'an Tch [Member] | ||
Significant Accounting Policies [Line Items] | ||
Equity interest percentage | 100.00% | |
Erdos TCH [Member] | ||
Significant Accounting Policies [Line Items] | ||
Equity interest percentage | 100.00% | |
Zhonghong [Member] | ||
Significant Accounting Policies [Line Items] | ||
Equity interest percentage | 90.00% | |
Long term loans from bank | $ 58,830,000 | $ 62,430,000 |
RESTRICTED CASH (Narrative) (De
RESTRICTED CASH (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 1,130,344 | $ 0 |
Bankers Acceptance [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Bank acceptance maturity period | 6 months |
INVESTMENT IN SALES-TYPE LEAS46
INVESTMENT IN SALES-TYPE LEASES, NET (Components of Net Investment in Leases) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total future minimum lease payments receivable | $ 387,612,418 | $ 583,820,886 |
Less: executory cost | (93,054,738) | (134,771,919) |
Less: unearned interest income | (154,799,027) | (268,028,368) |
Investment in sales-type leases, net | 139,758,653 | 181,020,599 |
Current portion | 6,679,019 | 6,561,984 |
Noncurrent portion | $ 133,079,634 | $ 174,458,615 |
INVESTMENT IN SALES-TYPE LEAS47
INVESTMENT IN SALES-TYPE LEASES, NET (Schedule of Future Minimum Rentals) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
2,016 | $ 33,679,315 | |
2,017 | 32,524,332 | |
2,018 | 32,524,332 | |
2,019 | 32,524,332 | |
2,020 | 32,524,332 | |
Thereafter | 223,835,775 | |
Total | $ 387,612,418 | $ 583,820,886 |
INVESTMENT IN SALES-TYPE LEAS48
INVESTMENT IN SALES-TYPE LEASES, NET (Narrative) (Details) | 12 Months Ended |
Dec. 31, 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). |
PREPAID EXPENSES (Narrative) (D
PREPAID EXPENSES (Narrative) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
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 | $ 830 | $ 880 | |
Prepaid Taxes | $ 300 |
OTHER RECEIVABLES (Narrative) (
OTHER RECEIVABLES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Advance To Third Party | $ 50 | $ 560 |
Advance To Employees | 40 | 40 |
Maintenance Cost And Tax Receivable | $ 470 | $ 100 |
LONG TERM INVESTMENT (Narrative
LONG TERM INVESTMENT (Narrative) (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 25, 2013USD ($) | Dec. 31, 2015USD ($) | 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 | $ 184,160 | |||||
Equity interest percentage | 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% | |||||
Zhonghong [Member] | Revenue | ||||||
Long Term Investment [Line Items] | ||||||
Management Company Revenue | 100.00% |
CONSTRUCTION IN PROGRESS (Detai
CONSTRUCTION IN PROGRESS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of construction in progress [Line Items] | ||
Construction in Progress, Gross | $ 115,522,068 | $ 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 | 28,100,201 | 26,573,828 |
Tangshan Rongfeng [Member] | ||
Schedule of construction in progress [Line Items] | ||
Construction in Progress, Gross | 0 | 28,373,387 |
Xuzhou Huayu [Member] | ||
Schedule of construction in progress [Line Items] | ||
Construction in Progress, Gross | 29,752,270 | 28,510,731 |
Xuzhou Tian'an [Member] | ||
Schedule of construction in progress [Line Items] | ||
Construction in Progress, Gross | 26,909,193 | 25,697,884 |
Boxing County Chengli [Member] | ||
Schedule of construction in progress [Line Items] | ||
Construction in Progress, Gross | $ 30,760,404 | $ 26,753,340 |
CONSTRUCTION IN PROGRESS (Narra
CONSTRUCTION IN PROGRESS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Xuzhou Zhongtai project [Member] | |
Construction Contracts [Line Items] | |
Additional Construction In Progress Gross | $ 7,340 |
Xuzhou Huayu project [Member] | |
Construction Contracts [Line Items] | |
Additional Construction In Progress Gross | 7,700 |
Xuzhou Tian'an project [Member] | |
Construction Contracts [Line Items] | |
Additional Construction In Progress Gross | 9,240 |
Boxing County Chengli [Member] | |
Construction Contracts [Line Items] | |
Additional Construction In Progress Gross | $ 6,570 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Taxes Payable [Line Items] | ||
Taxes payable | $ 1,058,417 | $ 2,614,311 |
Income [Member] | ||
Taxes Payable [Line Items] | ||
Taxes payable | 405,431 | 1,872,995 |
Business [Member] | ||
Taxes Payable [Line Items] | ||
Taxes payable | 249,141 | 306,848 |
VAT arising from transfer WGPG to Shenmu [Member] | ||
Taxes Payable [Line Items] | ||
Taxes payable | 369,595 | 392,221 |
Other [Member] | ||
Taxes Payable [Line Items] | ||
Taxes payable | $ 34,250 | $ 42,247 |
ACCRUED LIABILITIES AND OTHER55
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accrued liabilities and other payables | $ 3,199,395 | $ 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 | 749,930 | 693,969 |
Consulting, auditing, and legal expenses [Member] | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accrued liabilities and other payables | 1,342,395 | 537,973 |
Accrued payroll and welfare [Member] | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accrued liabilities and other payables | 278,819 | 304,512 |
Accrued interest expense [Member] | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accrued liabilities and other payables | 682,949 | 1,439,770 |
Other [Member] | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accrued liabilities and other payables | $ 145,302 | $ 274,520 |
DEFERRED TAX LIABILITY, NET (Su
DEFERRED TAX LIABILITY, NET (Summary of Deferred Tax Liability) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred tax asset current (accrual of employee social insurance) | $ 98,372 | $ 89,114 |
Deferred tax liability current (net investment in sales-type leases) | (1,636,477) | (1,124,451) |
Deferred tax liability, net of deferred tax asset - current | (1,538,105) | (1,035,337) |
Deferred tax asset noncurrent (depreciation of fixed assets) | 22,498,560 | 30,310,142 |
Deferred tax liability noncurrent (net investment in sales-type leases) | (33,269,908) | (43,612,679) |
Deferred tax liability, net of deferred tax asset - noncurrent | $ (10,771,348) | $ (13,302,537) |
LOANS PAYABLE (Entrusted Loan P
LOANS PAYABLE (Entrusted Loan Payable) - (Narrative) (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 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 | $ 11,550,000 | ||||
Entrusted loan [Member] | |||||
Debt Investments | $ 74,500,000 | 457 | |||
Description Of Loan Payable1 | During the first three years from the first release of the loan, the balance in its account shall be no less than RMB 7.14 million ($1.19 million) on the 20th day of the second 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 second 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 second 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 | $ 475,004 | $ 1,377,731 | |||
Capital Contribution | 8,820,000 | $ 7,960,000 | |||
Loans Payable, Fair Value Disclosure | 70,380,000 | ||||
Entrusted loan [Member] | Xi'an TCH Limited Partner [Member] | |||||
Loans Payable To Bank, Noncurrent | $ 11,550,000 | ||||
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 ($) | Nov. 08, 2011USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 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 | ||||
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 | ||||
2017 [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 | 12 Months Ended | ||||||
Jun. 26, 2015USD ($) | Jun. 26, 2015CNY (¥) | May. 28, 2014USD ($) | May. 28, 2014CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Jun. 26, 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 | 0.595% | 0.65% | 0.595% | 0.65% | ||||
Re-guarantee service fee | $ 149,341 | ¥ 950,000 | $ 155,280 | ¥ 950,000 | ||||
Loan From Bank Of Xian [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank loans payable issued | $ 6,290,000 | $ 6,500,000 | ¥ 40,000,000 | ¥ 40,000,000 | ||||
Debt Instrument, Maturity Date | May 29, 2015 | May 29, 2015 | ||||||
Loans Payable, Total | $ 6,160,000 |
LOANS PAYABLE (Bank Loan - Ba60
LOANS PAYABLE (Bank Loan - Bank of Chongqing) (Narrative) (Details) | Apr. 11, 2014USD ($) | Apr. 11, 2014CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 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 | $ 2,850,000 |
LOANS PAYABLE (Trust Loan - Zho
LOANS PAYABLE (Trust Loan - Zhongrong International Trust - Xuzhou Zhongtai and Tangshan Rongfeng) (Narrative) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Feb. 17, 2014USD ($) | Feb. 17, 2014CNY (¥) | |
Trust Loan Agreement With Zhongrong International Trust Co Ltd One [Member] | |||
Debt Instrument [Line Items] | |||
Interest Paid, Capitalized | $ 2,710 | ||
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 | ¥ 150 | |
Long-term Debt, Gross | $ 15,340 | ||
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% | ||
Debt Instrument, Interest Rate During Period | 12.00% | ||
Trust Loan Agreement With Zhongrong International Trust Co Ltd Two [Member] | Rongfeng [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 22,100 | ¥ 135 | |
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% | ||
Debt Instrument, Interest Rate During Period | 12.00% |
LOANS PAYABLE (Future Minimum R
LOANS PAYABLE (Future Minimum Repayments of all Bank Loans and Entrusted Loan) (Details) - Bank Loans and Entrusted Loan [Member] | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 49,279,290 |
2,017 | 24,371,688 |
2,018 | 9,523,223 |
Total | $ 83,174,201 |
LONG TERM PAYABLE - FINANCING63
LONG TERM PAYABLE - FINANCING AGREEMENT FOR SALE LEASE-BACK TRANSACTION (Long Term Payable) - (Narrative) (Details) | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 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 | ¥ 2,130,000 | |||||
Amortization of prepaid leasing service fee | 0 | $ 207,550 | ¥ 1,275,000 | ||||
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% | |||||
Present value of future minimum lease Payments, Sale leaseback transactions | $ 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 CUSTO64
REFUNDABLE DEPOSIT FROM CUSTOMERS FOR SYSTEMS LEASING (Narrative) (Details) ¥ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) |
Security Deposit | $ 338,079 | ¥ 2,130 | |
Pucheng, Shenqiu and Yida systems [Member] | |||
Security Deposit | $ 1,555,378 | $ 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 | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | 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] | Loan Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Advance to related party | 44,059 | 40,954 | ||||||||
Long-term Debt, Gross | 0 | $ 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 | ||||||||
Pucheng Xin Heng Yuan Biomass Power Generation Corporation [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest Income, Related Party | 4,890,000 | ¥ 30,470 | ||||||||
Qitaihe City Boli Yida Coal Selection Co., Ltd [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest Income, Related Party | $ 5,350,000 | ¥ 33,340 |
NONCONTROLLING INTEREST (Narrat
NONCONTROLLING INTEREST (Narrative) (Details) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 15, 2013USD ($) | Jul. 15, 2013CNY (¥) | |
Noncontrolling Interest [Line Items] | ||||
Net Losses Attributable to Noncontrolling Interest | $ 29,582 | $ 86,730 | ||
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 | In addition, the HYREF Fund was 16.3% owned by Xian TCH and 1.1% owned by the Fund Management Company, and the Fund Management Company was 40% owned by Xian TCH as described in Note 7, which resulted in an additional indirect ownership of Xian 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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Effective income tax rate | 15.00% | 23.70% | |
Net operating losses | $ 14,360 | ||
Deferred tax assets, valuation allowance, percentage | 100.00% | ||
Operating Income Loss Carryforwards Year | 20 years | ||
Foreign Retained Earnings Before Application Of Tax | $ 22,380 | $ 27,300 | |
Undistributed Earnings of Foreign Subsidiaries | 114,900 | ||
Federal income additional taxes | $ 23,220 | ||
Shanghai TCH [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 25.00% | 25.00% | |
Xian TCH [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 15.00% | ||
China [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 25.00% | ||
Erdos TCH Zhonghong Huahong [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 25.00% | 25.00% |
INCOME TAX (Schedule of Effecti
INCOME TAX (Schedule of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Effective Tax Rate [Line Items] | ||
US statutory rates | 34.00% | 34.00% |
Tax rate difference - current provision | (9.30%) | (9.50%) |
Effective tax holiday | (7.20%) | (8.00%) |
Prior periods income tax adjustment per income tax return filed | (1.80%) | 1.40% |
Other | (2.00%) | 0.40% |
Effect of tax rate change on deferred tax items | 0.00% | 3.50% |
Valuation allowance on PRC NOL | 0.10% | 0.00% |
Valuation allowance on US NOL | 1.20% | 1.90% |
Tax per financial statements | 15.00% | 23.70% |
INCOME TAX (Provision for Incom
INCOME TAX (Provision for Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Provision For Income Taxes Expenses [Line Items] | ||
Income tax expense - current | $ 4,497,150 | $ 5,055,803 |
Income tax expense (benefit) - deferred | (1,252,455) | 1,055,464 |
Total income tax expense | $ 3,244,695 | $ 6,111,267 |
STOCK-BASED COMPENSATION PLAN70
STOCK-BASED COMPENSATION PLAN (Narrative) (Details) $ / shares in Units, ¥ in Thousands | Jan. 15, 2015shares | Sep. 12, 2014USD ($) | Sep. 12, 2014CNY (¥) | Sep. 05, 2014USD ($) | Sep. 05, 2014CNY (¥) | Oct. 07, 2010USD ($)shares | Aug. 13, 2010$ / sharesshares | Nov. 11, 2009USD ($)$ / sharesshares | Jun. 19, 2015shares | Mar. 31, 2015USD ($)$ / sharesshares | Aug. 27, 2014$ / sharesshares | Oct. 16, 2013USD ($)shares | Jan. 20, 2010USD ($)$ / sharesshares | Oct. 30, 2009USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,261 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 75,000 | 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 | |||||||||||||||
Mr. Huang [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | 40,000 | ||||||||||||||||
Director One [Member] | |||||||||||||||||
Exercised | 50,000 | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 30,575 | ||||||||||||||||
Director Two [Member] | |||||||||||||||||
Exercised | 10,000 | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,549 | ||||||||||||||||
Director [Member] | |||||||||||||||||
Exercised | 60,000 | 10,000 | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 36,124 | ||||||||||||||||
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 | |||||||||||||||
Estimated life | 5 years | 5 years | 5 years | ||||||||||||||
Volatility percentage rate | 87.00% | 100.00% | 100.00% | ||||||||||||||
Risk free interest rate | 3.54% | 3.54% | 3.54% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Grant date fair value | $ | $ 83,000 | $ 142,000 | $ 183,000 | ||||||||||||||
Compensation per month | $ | $ 2,000 | $ 2,000 | |||||||||||||||
Closing Price Of Stock | $ / shares | $ 1.02 | ||||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||
Granted | 0 | 0 | |||||||||||||||
Grant date excersise price | $ / shares | $ 0 | $ 0 | |||||||||||||||
Vesting period | 3 years | ||||||||||||||||
Estimated life | 5 years | ||||||||||||||||
Volatility percentage rate | 100.00% | ||||||||||||||||
Risk free interest rate | 3.84% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
Grant date fair value | $ | $ 518,513 | ||||||||||||||||
Exercised | 0 | 0 | |||||||||||||||
Employee Stock Option [Member] | Second and Third Tranche [Member] | |||||||||||||||||
Estimated life | 5 years | ||||||||||||||||
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 | ||||||||||||||||
Equity Plan [Member] | |||||||||||||||||
Granted | 12,462,605 | ||||||||||||||||
Two Other Employees [Member] | Employee Stock Option [Member] | |||||||||||||||||
Granted | 290,000 | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 2.35 | ||||||||||||||||
Managerial And Non Managerial Employees [Member] | 2007 Plan [Member] | Employee Stock Option [Member] | |||||||||||||||||
Granted | 2,200,000 | ||||||||||||||||
Grant date excersise price | $ / shares | $ 3.05 | ||||||||||||||||
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-BASED COMPENSATION PLAN71
STOCK-BASED COMPENSATION PLAN (Summary of Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | |||
Number of Shares | |||
Beginning Balance, Outstanding | 733,333 | 1,023,333 | |
Beginning Balance, Exercisable | 733,333 | 1,023,333 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Forfeited | 733,333 | 290,000 | |
Ending Balance, Outstanding | 0 | 733,333 | 1,023,333 |
Ending Balance, Exercisable | 0 | 733,333 | 1,023,333 |
Average Exercise Price per Share | |||
Beginning Balance, Outstanding | $ 3.05 | $ 2.85 | |
Beginning Balance, Exercisable | 3.05 | 2.85 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Forfeited | 3.05 | 0 | |
Ending Balance, Outstanding | 0 | 3.05 | $ 2.85 |
Ending Balance, Exercisable | $ 0 | $ 3.05 | $ 2.85 |
Weighted Average Remaining Contractual Term in Years | |||
Outstanding | 0 years | 7 months 13 days | 1 year 4 months 24 days |
Granted | 0 years | 0 years | |
Exercised | 0 years | 0 years | |
Forfeited | 0 years | 0 years | |
Exercisable | 0 years | 7 months 13 days | 1 year 4 months 24 days |
Independent Directors Compensation Plan [Member] | |||
Number of Shares | |||
Beginning Balance, Outstanding | 80,000 | 200,000 | |
Beginning Balance, Exercisable | 80,000 | 160,000 | |
Granted | 40,000 | 0 | |
Exercised | 0 | 60,000 | |
Forfeited | 80,000 | 60,000 | |
Ending Balance, Outstanding | 40,000 | 80,000 | 200,000 |
Ending Balance, Exercisable | 40,000 | 80,000 | 160,000 |
Average Exercise Price per Share | |||
Beginning Balance, Outstanding | $ 3.83 | $ 2.64 | |
Beginning Balance, Exercisable | 3.83 | 2.64 | |
Granted | 1.02 | 0 | |
Exercised | 0 | 1.85 | |
Forfeited | 0 | 0 | |
Ending Balance, Outstanding | 1.02 | 3.83 | $ 2.64 |
Ending Balance, Exercisable | $ 1.02 | $ 3.83 | $ 2.64 |
Weighted Average Remaining Contractual Term in Years | |||
Outstanding | 4 years 9 months 7 days | 3 months 22 days | 1 year 18 days |
Granted | 4 years 9 months 7 days | 0 years | |
Exercised | 0 years | 0 years | |
Forfeited | 0 years | 0 years | |
Exercisable | 4 years 9 months 7 days | 3 months 22 days | 8 months 26 days |
STATUTORY RESERVES (Narrative)
STATUTORY RESERVES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Surplus Reserve Fund [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage of income transferred to retained earnings appropriated for legal reserve | 10.00% |
Statutory Surplus Reserve Fund [Member] | Maximum [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Statutory surplus reserve fund percentage | 50.00% |
Statutory Surplus Reserve Fund [Member] | Minimum [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage of total remaining reserve | 25.00% |
Common Welfare Fund [Member] | Maximum [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage of income transferred to retained earnings appropriated for legal reserve | 10.00% |
Common Welfare Fund [Member] | Minimum [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Percentage Of Income Transferred To Common Welfare Fund For Legal Reserve | 5.00% |
STATUTORY RESERVES (Details)
STATUTORY RESERVES (Details) - Dec. 31, 2015 | USD ($) | CNY (¥) |
Shanghai TCH [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | $ | $ 29,800,000 | |
Maximum Statutory Reserve Amount | $ | 14,900,000 | |
Statutory Reserve | 959,387 | ¥ 6,564,303 |
Xi'an TCH [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | 202,000,000 | |
Maximum Statutory Reserve Amount | 101,000,000 | |
Statutory Reserve | 9,938,025 | 64,672,311 |
Erdos TCH [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | 120,000,000 | |
Maximum Statutory Reserve Amount | 60,000,000 | |
Statutory Reserve | 2,926,377 | 19,035,814 |
Xi'an Zhonghong [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | 30,000,000 | |
Maximum Statutory Reserve Amount | 15,000,000 | |
Shaanxi Huahong [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | $ | 2,500,300 | |
Maximum Statutory Reserve Amount | $ | $ 1,250,150 | |
Zhongxun [Member] | ||
Schedule Of Statutory Reserves [Line Items] | ||
Registered Capital | 35,000,000 | |
Maximum Statutory Reserve Amount | ¥ 17,500,000 |
CONTINGENCIES (Narrative) (Deta
CONTINGENCIES (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Xi'an TCH [Member] | ||
Schedule Of Contingencies [Line Items] | ||
Notes Payable, Related Parties, Current | $ 0 | $ 0 |
COMMITMENTS (Future Minimum Ann
COMMITMENTS (Future Minimum Annual Rental Payments) (Details) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | |
2,016 | $ 59,462 |
Total | $ 59,462 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - USD ($) | Mar. 04, 2014 | Sep. 16, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||||
Operating Lease Term | 2 years | 3 months | ||
Operating lease expiry date | Dec. 31, 2015 | |||
Monthly rental payment | $ 20,140 | $ 12,110 | ||
Rental expense | $ 388,211 | $ 402,374 |
SUBSEQUENT EVENT (Narrative) (D
SUBSEQUENT EVENT (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Subsequent Event [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 19,842 | $ 2,165 | ||
Subsequent Event [Member] | Zhongtai and Xi'an Huaxin [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments for Interest Incurred on Construction in Progress | $ 2,310,000 | ¥ 15,000,000 | ||
Payments to Acquire Businesses, Gross | 25,770,000 | 167,360,000 | ||
Business Combination, Consideration Transferred, Total | $ 7,700,000 | ¥ 50,000,000 | ||
Business Combination, Contingent Consideration Arrangements, Description | (a) RMB 50,000,000 ($7.70 million) should be paid by Zhongtai to Xian TCH within 20 business days after the Transfer Agreement is signed, (b) RMB 30,000,000 ($4.62 million) will be paid by Zhongtai to Xian TCH within 20 business days after the Project is completed, but no later than July 30, 2016 and (c) RMB 87,360,000 ($13.45 million) will be paid by Zhongtai to Xian TCH no later than July 30, 2017. | (a) RMB 50,000,000 ($7.70 million) should be paid by Zhongtai to Xian TCH within 20 business days after the Transfer Agreement is signed, (b) RMB 30,000,000 ($4.62 million) will be paid by Zhongtai to Xian TCH within 20 business days after the Project is completed, but no later than July 30, 2016 and (c) RMB 87,360,000 ($13.45 million) will be paid by Zhongtai to Xian TCH no later than July 30, 2017. | ||
Subsequent Event [Member] | Zhongtai and Xi'an Huaxin [Member] | Construction in Progress [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 23,460,000 | ¥ 152,360,000 |