Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 29, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GENERAL STEEL HOLDINGS INC | ||
Entity Central Index Key | 0001239188 | ||
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 | Non-accelerated Filer | ||
Entity Public Float | $ 0.6 | ||
Trading Symbol | GSIH | ||
Entity Common Stock, Shares Outstanding | 46,013,959 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,820,832 | $ 5,260 |
Accounts receivables | 55,246 | 0 |
Prepaid expense and other current assets | 19,791 | 2,500 |
TOTAL CURRENT ASSETS | 4,895,869 | 7,760 |
EQUIPMENT, NET | 217 | 217 |
RENT DEPOSIT | 10,058 | 0 |
INVESTMENT IN UNCONSOLIDATED ENTITIES | 12,972,148 | 14,708,681 |
TOTAL ASSETS | 17,878,292 | 14,716,658 |
CURRENT LIABILITIES: | ||
Other payables and accrued liabilities | 542,692 | 2,129,754 |
Other payables - related parties | 9,187,882 | 8,445,288 |
Taxes payable | 277 | 0 |
TOTAL CURRENT LIABILITIES | 9,730,851 | 10,575,042 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock, $0.001 par value, 200,000,000 shares authorized, 46,508,421 and 20,694,670 shares issued, 46,013,959 and 20,200,208 shares outstanding as of December 31, 2018 and December 31, 2017, respectively | 46,509 | 20,695 |
Treasury stock, at cost, 494,462 shares as of December 31, 2018 and December 31, 2017 | (839,686) | (839,686) |
Additional paid-in-capital | 1,261,869,238 | 1,256,955,395 |
Statutory reserves | 1,107,010 | 1,107,010 |
Accumulated deficit | (1,257,246,837) | (1,256,044,414) |
Accumulated other comprehensive income | 3,208,114 | 2,939,523 |
TOTAL EQUITY | 8,147,441 | 4,141,616 |
TOTAL LIABILITIES AND EQUITY | 17,878,292 | 14,716,658 |
Series A Preferred Stock [Member] | ||
EQUITY: | ||
Preferred stock | 3,093 | 3,093 |
Series B Preferred Stock [Member] | ||
EQUITY: | ||
Preferred stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, par or stated value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 46,508,421 | 20,694,670 |
Common stock, shares, outstanding | 46,013,959 | 20,200,208 |
Treasury stock, shares | 494,462 | 494,462 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par or stated value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 3,092,899 | 3,092,899 |
Preferred stock, shares outstanding | 3,092,899 | 3,092,899 |
Series B Preferred Stock [Member] | ||
Preferred Stock, par or stated value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
GENERAL AND ADMINISTRATIVE EXPENSES | $ 224,220 | $ 238,414 |
LOSS FROM OPERATIONS | (224,220) | (238,414) |
OTHER INCOME (EXPENSE) | ||
Income(loss) from equity investment | (978,052) | 1,048,800 |
Finance/interest expense | (151) | (1,415) |
Other income(expense), net | (978,203) | 1,047,385 |
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | (1,202,423) | 808,971 |
PROVISION FOR INCOME TAXES | 0 | 0 |
NET INCOME(LOSS) FROM CONTINUING OPERATIONS | (1,202,423) | 808,971 |
NET LOSS FROM OPERATIONS DISPOSED, net of applicable income taxes | 0 | (6,331,571) |
NET LOSS | (1,202,423) | (5,522,600) |
OTHER COMPREHENSIVE INCOME | ||
Foreign currency translation adjustments | 268,591 | 1,567,611 |
COMPREHENSIVE LOSS | $ (933,832) | $ (3,954,989) |
WEIGHTED AVERAGE NUMBER OF SHARES | 24,023,664 | 20,150,208 |
INCOME(LOSS) PER SHARE - BASIC AND DILUTED | ||
Continuing operations | $ (0.05) | $ 0.04 |
Operations disposed | 0 | (0.31) |
Net loss per share | $ (0.05) | $ (0.27) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Preferred stock [Member] | Common stock [Member] | Treasury stock [Member] | Paid-in capital [Member] | Statutory reserves [Member] | Unrestricted reserves [Member] | Accumulated other comprehensive income [Member] |
BALANCE at Dec. 31, 2016 | $ 4,525,224 | $ 3,093 | $ 20,495 | $ (839,686) | $ 1,253,384,214 | $ 1,107,010 | $ (1,250,521,814) | $ 1,371,912 |
BALANCE (in shares) at Dec. 31, 2016 | 3,092,889 | 20,494,670 | (494,462) | |||||
Gain from disposal of subsidiary to related party | 3,331,381 | 3,331,381 | ||||||
Stock compensation | 240,000 | $ 200 | 239,800 | |||||
Stock compensation (in shares) | 200,000 | |||||||
Net loss | (5,522,600) | (5,522,600) | ||||||
Foreign currency translation adjustments | 1,567,611 | 1,567,611 | ||||||
BALANCE at Dec. 31, 2017 | 4,141,616 | $ 3,093 | $ 20,695 | $ (839,686) | 1,256,955,395 | 1,107,010 | (1,256,044,414) | 2,939,523 |
BALANCE (in shares) at Dec. 31, 2017 | 3,092,889 | 20,694,670 | (494,462) | |||||
Proceed from private placement | 4,189,657 | $ 4,175 | 4,185,482 | |||||
Proceed from private placement (in Shares) | 4,175,095 | |||||||
Common stock issued | 750,000 | $ 21,639 | 728,361 | |||||
Common stock issued (in shares) | 21,638,656 | |||||||
Net loss | (1,202,423) | (1,202,423) | ||||||
Foreign currency translation adjustments | 268,591 | 268,591 | ||||||
BALANCE at Dec. 31, 2018 | $ 8,147,441 | $ 3,093 | $ 46,509 | $ (839,686) | $ 1,261,869,238 | $ 1,107,010 | $ (1,257,246,837) | $ 3,208,114 |
BALANCE (in shares) at Dec. 31, 2018 | 3,092,889 | 46,508,421 | (494,462) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,202,423) | $ (5,522,600) |
Net loss from operations disposed | 0 | (6,331,571) |
Net income(loss) from continuing operations | (1,202,423) | 808,971 |
Adjustments to reconcile net loss to cash provided by (used in) operating activities from continuing operations: | ||
Loss from equity investment | 978,052 | (1,048,800) |
Changes in operating assets and liabilities | ||
Prepaid expense and other current assets | 0 | (534) |
Other payables and accrued liabilities | (1,587,085) | 131,524 |
Net cash used in operating activities from operations disposed | 0 | (1,160,367) |
Net cash used in operating activities | (1,811,456) | (1,269,206) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash acquired from new acquired subsidiaries | 4,364,582 | 0 |
Proceed from sale of subsidiary | 0 | 22,785,784 |
Net cash provided by investing activities | 4,364,582 | 22,785,784 |
CASH FLOWS FINANCING ACTIVITIES: | ||
Borrowings from related parties | 1,512,173 | 19,196,997 |
Repayment to related parties | 0 | (43,344,792) |
Proceed from short term borrowings | 0 | 1,479,596 |
Proceed from private placement | 750,000 | 0 |
Net cash provided by financing activities from operations disposed | 0 | 1,139,451 |
Net cash provided by(used in) financing activities | 2,262,173 | (21,528,748) |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH AND CASH EQUIVALENTS | 273 | 18,992 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,815,572 | 6,822 |
CASH AND CASH EQUIVALENTS, beginning of year | 10,619 | 3,797 |
CASH AND CASH EQUIVALENTS, end of year | 4,820,832 | 10,619 |
Less: cash from operations disposed, end of year | 0 | (5,359) |
CASH FROM CONTINUING OPERATIONS, end of year | $ 4,820,832 | $ 5,260 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Organization and Operations General Steel Holdings, Inc. (the “Company”) was incorporated on August 5, 2002 in the state of Nevada. The Company through its 100% owned subsidiary, General Steel Investment Co., Ltd, has been operating steel companies serving various industries in the People’s Republic of China (“PRC”). The Company’s main operation, since disposal of its significant steel producing operating assets and trading business at December 31, 2017 has been the 32% equity holding in Tianwu General Steel Material Trading Co., Ltd (“Tianwu”). Beijing Ouruixi is in the business of cell research, development, and storage and cell culture service in the People’s Republic of China. Recent Development On December 31, 2018, the Company entered into a Share Exchange Agreement (the “Agreement”) with Fresh Human Global Ltd., a Cayman Islands corporation (“Fresh Human”) and Hummingbird Holdings Limited, the sole shareholder of Fresh Human (“Hummingbird”) holding one share of Fresh Human. Pursuant to the terms of the Agreement, Hummingbird exchanged its equity interest in Fresh Human for 4,175,095 shares of restricted stock of the Company. As a result of the Exchange, Fresh Human is now a wholly-owned subsidiary of the Company. The transactions contemplated by the Agreement are related party transactions. Hummingbird is a shareholder of the Company, holding 51.1 Fresh Human is a holding company incorporated on May 25, 2018, under the laws of Cayman Islands. Fresh Human has no substantive operations other than holding the outstanding share of Tuotuo River HK Limited (“Tuotuo River”). Tuotuo River, a Hong Kong Limited Liability Company, is a holding company incorporated on June 6, 2018. Tuotuo River holds all of the outstanding equity of Beijing Qianhaitong Technology Development Co., Ltd (“Tuotuo River WFOE”). Fresh Human and Tuotuo River were established as the holding companies of Tuotuo River WFOE. Tuotuo River WFOE is the primary beneficiary of Beijing Ouruixi Medical Technology Co., Ltd. (“Beijing Ouruixi”). Beijing Ouruixi is in the business of cell research, development, and storage and cell culture service in the People’s Republic of China. All of these entities included in Fresh Human are under common control, which results in the consolidation of Beijing Ouruixi which have been accounted for as a reorganization of entities under common control at carrying value. The Company issued 4,175,095 shares of common stock at $.001 par value, the excess of $4,189,657 carrying value of assets acquired over fair value of shares issued is recorded as additional paid in capital. Contractual Arrangements Beijing Ouruixi’s PRC business license includes business activities of cell research, development, and storage and cell culture service and it is being included as social survey category, which is within the business category in which foreign investment is restricted pursuant to the current PRC regulations. As such, Beijing Ouruixi is controlled through contractual agreements in lieu of direct equity ownership by the Company or any of its subsidiaries. Such contractual arrangements consist of a series of four agreements (collectively the “Contractual Arrangements”). The significant terms of the Contractual Agreements are as follows: Technical Consultation and Services Agreement Pursuant to the Technical Consultation and Services Agreement dated December 19, 2018 between Tuotuo River WFOE and Beijing Ouruixi, Tuotuo River WFOE is engaged as exclusive provider of management consulting services to Beijing Ouruixi. For such services, the Beijing Ouruixi agrees to pay service fees determined based on all of their net income to Tuotuo River WFOE or Tuotuo River WFOE has obligation to absorb all of the losses Beijing Ouruixi. The technical consultation and services agreement, remains in effect for 20 years until December 19, 2038. The agreement can be extended only if Tuotuo River WFOE gives its written consent of extension of the agreement before the expiration of the agreement and Beijing Ouruixi shall agree to the extension without reserve. Equity Option Agreements Pursuant to the equity option agreements dated December 19, 2018 among the shareholders who collectively owned all of Beijing Ouruixi and Tuotuo River WFOE, these shareholders jointly and severally granted Tuotuo River WFOE an option to purchase their equity interests in Beijing Ouruixi. The purchase price shall be the lowest price permitted under applicable PRC laws. If the purchase price is greater than the registered capital of Beijing Ouruixi, these shareholders of Beijing Ouruixi are required to immediately return any amount in excess of the registered capital to Tuotuo Ricer WFOE or its designee of Tuotuo River WFOE. Tuotuo River WOFE may exercise such option at any time until it has acquired all equity interests of Beijing Ouruixi. The agreements will terminate at the date on which all of these shareholders’ equity interests of Beijing Ouruixi has been transferred to Tuotuo River WFOE or its designee. Equity Pledge Agreements Pursuant to the equity pledge agreements dated December 19, 2018, the shareholders who collectively owned all of Beijing Ouruixi, pledge all of the equity interests in Beijing Ouruixi to Tuotuo River WFOE as collateral to secure the obligations of Beijing Ouruixi under the exclusive consulting services and operating agreement. These shareholders may not transfer or assign transfer or assign the pledged equity interests, or incur or allow any encumbrance that would jeopardize Tuotuo River WFOE’s interests, without Tuotuo River WFOE’s prior approval. In the event of default, Tuotuo River WFOE as the pledgee will be entitled to certain rights and entitlements, including the priority in receiving payments by the evaluation or proceeds from the auction or sale of whole or part of the pledged equity interests of Beijing Ouruixi. The agreement shall be continuously valid until these shareholders are no longer shareholders of Beijing Ouruixi or the satisfaction of all its obligations by the Beijing Ouruixi under the Technical Consultation and Services Agreement. Voting Rights Proxy and Financial Supporting Agreements Pursuant to the voting rights proxy and financial supporting agreements dated December 19, 2018, the shareholders of Beijing Ouruixi give Tuotuo River WFOE an irrevocable proxy to act on their behalf on all matters pertaining to Beijing Ouruixi and to exercise all of their rights as shareholders of Beijing Ouruixi, including the right to attend shareholders meeting, to exercise voting rights and to transfer all or a part of their equity interests in Beijing Ouruixi. In consideration of such granted rights, Tuotuo River WFOE agrees to provide the necessary financial support to Beijing Ouruixi whether or not Beijing Ouruixi incurs loss, and agrees not to request repayment if Beijing Ouruixi is unable to do so. The agreements shall remain in effect for 20 years until December 19, 2038. Based on the foregoing contractual arrangements, which grant Tuotuo River WFOE effective control of Beijing Ouruixi, obligate Tuotuo River WFOE to absorb all of the risk of loss from their activities, and enable Tuotuo River WFOE to receive all of their expected residual returns, the Company accounts for Beijing Ouruixi as a variable interest entity (“VIE”). The Company consolidates the accounts of its subsidiaries and VIE, in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”), and Accounting Standards Codification (“ASC”) 810-10, Consolidation. The accompanying consolidated financial statements reflect the activities of the Company’s subsidiaries and VIEs: Subsidiary/VIE Place of incorporation Percentage of Ownership General Steel Investment Co., Ltd. British Virgin Islands 100.0 % Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”) PRC 100.0 % Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)* PRC - Fresh Human Global Ltd. (“Fresh Human”) Cayman 100.0 % Tuotuo River HK Limited (“Tuotuo River”) Hong Kong 100.0 % Beijing Qianhaitong Technology Development Co., Ltd. (“Tuotuo River WFOE”) PRC 100.0 % Beijing Ouruixi Medical Technology Co., Ltd. (“Beijing Ouruixi”) PRC VIE *Tianjin Shuangsi was disposed on December 31, 2017 and its results of operations were presented as operations disposed for the year ended December 31, 2017. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 – Summary of significant accounting policies (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprise ("WFOE") and variable interest entities ("VIEs") over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. (c) Liquidity Historically, the Company finances its operations through internally generated cash and payable from related parties. As of December 31, 2018, the Company had approximately $0.5 million in cash and primarily consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use and are deposited with banks in China. Although the Company’s working capital deficit was $4.8 million, $9.2 million of which was payable to related parties. The related parties has agreed not to collect the amount due as long as the Company has working capital deficits, so the Company believes current working capital is sufficient to support its operations for the next twelve months. (d) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates. (e) Concentration of risks and other uncertainties The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. 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. 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 maintains cash with banks in People’s Republic of China (“PRC” or “China”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In US, a depositor has up to $250,000 insured by the Federal Deposit Insurance Corporation (“FDIC”). As of December 31, 2018 and 2017, approximately $145,000 and $4,800 of the Company’s cash held by financial institutions were insured, and the remaining balance of approximately $4,670,000 and $nil were not insured. None of the Company’s customers individually accounted for more than 10% of total sales for the year ended December 31, 2018. One of the Company’s customers, a related party individually accounted for 96.7% of total sales of the Company, disposed for the year ended December 31, 2017. None of the Company’s suppliers individually accounted for more than 10% of the total purchases for the year ended December 31, 2018. Three of the Company’s suppliers, all related parties, accounted for 98.5% of the total purchases for the year ended December 31, 2017. (f) Foreign currency translation and other comprehensive income The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries in China use the local currency, Renminbi (“RMB”), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income amounted to $3.21 million and $2.94 million as of December 31, 2018 and December 31, 2017, respectively. The balance sheet amounts, with the exception of equity at December 31, 2018 and 2017 were translated at 6.88 RMB and 6.51 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the years ended December 31, 2018 and 2017 were 6.61 RMB and 6.76 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. (g) Financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: 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 assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value. (h) Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits and time deposit in banks with original maturities of three months or less than three months. (i) Accounts receivable and allowance for doubtful accounts Accounts receivable include trade accounts due from customers. An allowance for doubtful accounts is established and recorded based on managements’ assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. (j) Prepaid Expenses Prepaid expenses represents advance payments made to vendors for services such as rent, consulting and certification. (k) Equipment, net Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows: Office equipment 5 Years The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. (l) Investments in unconsolidated entities Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method. On December 28, 2015 General Steel (China) Co., Ltd sold its 32% equity interest in Tianwu General Steel Material Trading Co., Ltd. to Tongyong Shengyuan, one of the Company’s wholly owned subsidiaries, for $14.9 million (RMB 96.6 million). As of December 31, 2018, Tongyong Shengyuan’s net investment in the unconsolidated entity was approximately $13.0 million. Total investment income (loss) in unconsolidated subsidiaries which was included in “Income (Loss) from equity investment” in the consolidated statements of operations and comprehensive income, amounted to approximately $(1.0) million and $1.0 million for the years ended December 31, 2018 and 2017, respectively. The Company performed significance tests in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as significant equity investee, the condensed financial statements of Tianwu is presented as follows: CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) For the year ended December 31, 2018 2017 CURRENT ASSETS: Cash $ 243 $ 705 Other receivables, net 5,229 26,855 Other receivables - related party 64,825 - Prepayments 1,060 40,058 Inventory 5 5 Total current assets 71,362 67,623 Property and equipment, net 5 - Investment 605 - Operations held for sale 27,519 30,081 TOTAL ASSETS $ 99,491 $ 97,704 CURRENT LIABILITIES: Accounts payable $ - $ 1,366 Other payable - related party 3,965 - Short term loans 39,254 3,074 Other payables and accrued liabilities 14,330 8,824 Customer deposits 1,146 - Taxes payable 259 49 Total current liabilities 58,954 13,313 NON-CURRENT LIABILITIES Long term loans - 38,426 Total liabilities 58,954 51,739 Equity 40,537 45,965 TOTAL EQUITY AND LIABILITIES $ 99,491 $ 97,704 CONDENSED CONSOLIDTED STATEMENT OF INCOME (In thousands) For the year ended December 31, 2018 2017 NET SALES $ 69 $ 2,614 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 291 239 FINANCE EXPENSES 5,156 7,087 INTEREST INCOME (3,278 ) (69 ) TOTAL EXPENSES 2,169 7,257 LOSS BEFORE PROVISION FOR INCOME TAXES (2,100 ) (4,643 ) PROVISION FOR INCOME TAXES - 18 NET LOSS FOR CONTINUING OPERATIONS (2,100 ) (4,661 ) NET INCOME(LOSS) FROM OPERATIONS HELD FOR SALE (955 ) 7,939 NET INCOME(LOSS) $ (3,055 ) 3,278 (m) Revenue recognition For the year ended December 31 2017, sales is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product. Gross versus net revenue reporting In the normal course of the Company’s trading business, the Company orders directly the iron ore, nickel-iron-manganese alloys, and other steel-related products from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the steel-related products delivery, (ii) establishing the selling prices for delivery of the steel-related products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore report revenues and cost of revenues on a net basis. For the year ended December 31, 2017, the Company had gross sales of $13.81 million, of from operations disposed which $13.4 million were related party sales. Net loss for related party sales were $6.31 million and $0.17 million for non related party. See details of related party sales and purchases in Note 9. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) using the modified retrospective method for contracts that were not completed as of January 1, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized over time. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no difference in the pattern of revenue recognition. (n) Operations disposed In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. On December 31, 2017, the Company sold Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. The result of operations was presented as operations disposed on December 31, 2017 in the consolidated financial statements. The net deficiency of Shuangsi as of December 31, 2017 is as follows: (In thousands) December 31, 2017 CURRENT ASSETS: Cash $ 6 Prepaid taxes 1,048 Receivables 147 Total current assets 1,201 CURRENT LIABILITIES: Other payable and accrued liabilities 2,654 Other payables - related parties 2,008 Total current liabilities 4,662 Accumulated other comprehensive income 130 Total net deficiency (3,331 ) Net consideration - Gain in disposal of subsidiary $ (3,331 ) Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the years ended December 31, 2018 and 2017. For the years ended December 31, Operations Disposed – Tianjin Shuangsi: 2018 2017 (In thousands) NET PROFIT (LOSS) $ - $ (6,311 ) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES - 20 INCOME (LOSS) FROM OPERATIONS - (6,331 ) OTHER EXPENSE Finance/interest expense - 1 Other expense, net - 1 LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST - (6,332 ) PROVISION FOR INCOME TAXES - - NET LOSS FROM OPERATIONS DISPOSED - (6,332 ) Less: Net loss attributable to noncontrolling interest from operations disposed - - NET LOSS FROM OPERATIONS DISPOSED $ - $ (6,332 ) (o) Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. (p) Earnings (loss) per share The Company has adopted the accounting principles generally accepted in the United States regarding earnings per share (“EPS”), which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share. Basic earnings (loss) per share are computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. (q) Treasury Stock Treasury stock consists of shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method. The Company has repurchased 494,462 total shares of its common stock, given retroactive effect to the 1-for-5 reverse stock split effective on October 29, 2015, under the share repurchase plan approved by the Board of Directors in December 2010. (r) Income taxes The Company accounts for income taxes in accordance with the accounting principles generally accepted in the United States for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The accounting principles generally accepted in the United States for accounting for uncertainty in income taxes clarify the accounting and disclosure for uncertain tax positions. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of December 31, 2018, the Company’s income tax returns for December 31, 2017, 2016, 2015 and 2014 remain subject to examination by the taxing authorities. (s) Share-based compensation The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with the accounting standards regarding accounting for stock-based compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. (t) Recently issued accounting pronouncements adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The update requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It eliminated the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is require to be disclosed for financial instruments measured at amortized cost on the balance sheet. For public entities, the ASU is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The objective is to clarify the two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for these areas. The ASU affects the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of ASU 2014-09 by one year. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. See Note 2 (m) for details. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company has evaluated and determined that the adoption of this ASU did not have a material effect on the Company’s financial statements. (u) Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of the adoption of this accounting standard to its consolidated financial statement. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the year ending December 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements. |
Variable interest entity ("VIE"
Variable interest entity ("VIE") | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Note 3 – Variable interest entity (“VIE”) On December 19, 2018, Tuotuo River WFOE entered into Contractual Arrangements with Beijing Ouruixi and its shareholders who collectively owns 100% of Beijing Ouruixi. The significant terms of these Contractual Arrangements are summarized in “Note 1 - Nature of business and organization” above. As a result, the Company classifies Beijing Ouruixi as a VIE. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. Tuotuo River WFOE is deemed to have a controlling financial interest and be the primary beneficiary of Beijing Ouruixi because it has both of the following characteristics: (1) The power to direct activities at Beijing Ouruixi that most significantly impact such entity’s economic performance, and (2) The obligation to absorb losses of, and the right to receive benefits from Beijing Ouruixi that could potentially be significant to such entity. Pursuant to the Contractual Arrangements, Beijing Ouruixi pays service fees equal to all of its net income to Tuotuo River WFOE. At the same time, Tuotuo River WFOE is obligated to absorb all of Beijing Ouruixi’s losses. The Contractual Arrangements are designed so that Beijing Ouruixi operate for the benefit of Tuotuo River WFOE and ultimately, the Company. Accordingly, the accounts of Beijing Ouruixi is consolidated in the accompanying financial statements pursuant to ASC 810-10, Consolidation. In addition, its financial positions and results of operations are included in the Company’s financial statements. The carrying amount of the VIE’s consolidated assets and liabilities are as follows: December 31, 2018 December 31, 2017 Current assets $ 4,438,916 $ 17,781 Total assets 4,448,974 17,781 Total liabilities (259,317 ) (126,966 ) Net assets $ 4,189,657 $ (109,185 ) December 31, 2018 December 31, 2017 Current liabilities: Other payables and accrued liabilities $ 25,667 $ 2,796 Other payable – related party 233,373 122,948 Taxes payable 277 1,222 Total current liabilities 259,317 126,966 Total liabilities $ 259,317 $ 126,966 The summarized operating results of the VIE’s are as follows: For the year ended December 31, 2018 For the year ended December 31, 2017 Operating revenues $ 59,959 $ 22,194 Operating expenses $ 222,010 $ 45,934 Loss from operations $ (162,051 ) $ (23,740 ) Net loss $ (162,093 ) $ (23,164 ) Under the VIE Arrangements, the Company has the power to direct activities of Beijing Ouruixi and can have assets transferred out of Beijing Ouruixi. Therefore, the Company considers that there is no asset in Beijing Ouruixi that can be used only to settle obligations of Beijing Ouruixi, except for registered capital and PRC statutory reserves, if any. As Beijing Ouruixi is incorporated as limited liability company under the Company Law of the PRC, creditors of the Beijing Ouruixi do not have recourse to the general credit of the Company for any of the liabilities of Beijing Ouruixi. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 4 – Cash and cash equivalents Cash and cash equivalents consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Cash and cash equivalents: Cash in bank and on hand $ 459 $ 5 Time deposit – with original maturities less than three months 4,362 - Total Cash and cash equivalents: $ 4,821 $ 5 As of December 31, 2018, and 2017, the Company had time deposits of approximately $4.4 million (RMB 30 million) and $nil, respectively, pledged as collateral to the bank for Tianjin Guangtai Changxin International Trading Co. See Note 11. As of December 31, 2018, one of the Company’s bank account amounted totaling $453 thousands was under the third party trust account. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5– Accounts receivable, net Accounts receivables, net of allowance for doubtful accounts consists of the following: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Accounts receivable $ 55 $ - Less: allowance for doubtful accounts - - Net accounts receivable $ 55 $ - |
Other payable and accrued liabi
Other payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 6 - Other payable and accrued liabilities Other payable and accrued liabilities consist of the following: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Salary payable $ 142 $ 142 Short term payable, no interest due on demand 37 1,480 Professional fees 364 508 Other payable and accrued liabilities, net $ 543 $ 2,130 |
Supplemental disclosure of cash
Supplemental disclosure of cash flow information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Supplemental Disclosures [Text Block] | Note 7 - Supplemental disclosure of cash flow information During the year ended December 31, 2017, the Company increased additional paid-in capital of $3.33 million as a result of the gain on sale of subsidiary to a related party. During the year ended December 31, 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 8– Taxes Income tax Cayman Islands Under the current laws of the Cayman Islands, Fresh Human is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Tuotuo River HK is incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, Tuotuo River HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC The subsidiaries and VIEs incorporated in the PRC are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate. Beijing Ouruixi’s operations have incurred a cumulative net operating loss (“NOL”) of approximately RMB 1,228,471 (USD 185,257) as of December 31, 2018 which may reduce future taxable income. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Since Beijing Ouruixi had continuing losses so the Company made a full allowance of related deferred tax assets. Deferred taxes assets – China According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for the next five years. Management took into consideration its operating forecast for the next five years and concluded that the beginning-of-the-year balance of deferred tax assets mainly relating to the net operating loss carry forward may not be fully realizable due to the reduction in the projection of income to be available in the next 5 years. Management therefore decided to provide 100% valuation allowance for the deferred tax assets. Deferred taxes assets – U.S. General Steel Holdings, Inc. was incorporated in the United States and has incurred net operating losses for income tax purposes for the year ended December 31, 2018. The net operating loss carry forwards for United States income taxes amounted to $6.7 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2027 through 2037. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset benefit to reduce the asset to zero. The valuation allowance as of December 31, 2018 was $2.6 million. Management will review this valuation allowance periodically and make adjustments as warranted. The Company has no cumulative proportionate retained earnings from profitable subsidiaries as of December 31, 2018. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted in the future. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The enactment of the ACT did not have a material effect on the Company’s financials as the Company has accumulated deficits and has provided full valuation allowance to its deferred tax assets. |
Related party transactions and
Related party transactions and balances | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 9 – Related party transactions and balances Related party transactions a. The following chart summarized revenue from related parties for the years ended December 31, 2018 and 2017. Name of related parties Relationship For the year ended December 31, 2018 For the years ended December 31, 2017 (in thousands) (in thousands) Tianjin Dazhen Industry Co., Ltd Partially owned by CEO through indirect shareholding - (45 ) Tianjin Hengying Trading Co., Ltd Partially owned by CEO through indirect shareholding - 13,360 Tianjin Qiu Steel Investment Co., Ltd Partially owned by CEO through indirect shareholding - 77 Total $ - $ 13,392 Less: Sales to related parties from operations disposed - (13,392 ) Sales–related parties – continuing operations $ - $ - *The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu. b. The following charts summarize purchases from related parties for the years ended December 31, 2018 and 2017. Name of related parties Relationship For the year ended December 31, 2018 For the years ended December 31, 2017 (in thousands) (in thousands) Wendlar Tianjin Industry Co., Ltd Partially owned by CEO through indirect shareholding - 3,063 Tianjin Dazhen Trading Co., Ltd Partially owned by CEO through indirect shareholding - 7,169 General Steel (China) Co., Ltd Partially owned by CEO through indirect shareholding - 9,607 Total $ - $ 19,839 Less Purchases from related parties from operations disposed - (19,839 ) Purchases–related parties–continuing operations $ - $ - Related party balances a. Other payables – related parties: Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the . Name of related parties Relationship December 31, 2018 December 31, 2017 (in thousands) (in thousands) Yangpu Capital Automobile Partially owned by CEO through indirect shareholding 95 95 General Steel (China) Co., Ltd Partially owned by CEO through indirect shareholding 7,388 6,881 Zuosheng Yu CEO 1,471 1,469 Baoning Shi Major shareholder 173 - Beijing Ronghuida Investment Consulting Co., Ltd. Common control under major shareholder 60 - Beijing Hanjiang International Investment Consulting Co., Ltd. Common control under major shareholder 1 - Total $ 9,188 $ 8,445 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 10 – Equity In March 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016. On August 24, 2018, the Company entered into a subscription agreement with Hummingbird Holdings Limited, a BVI entity. Pursuant to the Subscription Agreement, the Investor purchased 7,352,941 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $0.034 per share for aggregate gross proceeds of $250,000. On November 30, 2018, the Company entered into another subscription agreement with Hummingbird Holdings Limited, a BVI entity. Pursuant to the Subscription Agreement, the Investor purchased 14,285,715 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $0.035 per share for aggregate gross proceeds of $500,000. On December 31, 2018, the Company entered into a Share Exchange Agreement (the “Agreement”) with Fresh Human Global Ltd., a Cayman Islands corporation (“Fresh Human”) and Hummingbird Holdings Limited, the sole shareholder of Fresh Human (“Hummingbird”) holding one share of Fresh Human. Pursuant to the terms of the Agreement, Hummingbird exchanged its equity interest in Fresh Human for 4,175,095 shares of restricted stock (the “Shares”) of the Company (the “Exchange”). As a result of the Exchange, Fresh Human is now a wholly-owned subsidiary of the Company. Fresh Human was valued at $4,175,095. The transactions contemplated by the Agreement are related party transactions. Hummingbird is a shareholder of the Company, holding 51.1% of the Company’s outstanding common stock and through ownership of the Company’s Series A Preferred Stock has voting power of 30% of the combined voting power of our common stock and preferred stock, and as a result of the Exchange, Hummingbird now holds 55.5 % of the common stock of the Company. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary and VIE. Relevant PRC statutory laws and regulations permit payments of dividends only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries and VIE. The Company’s subsidiaries and VIE are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the Company’s subsidiaries and VIE may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. The Company’s subsidiaries and VIE may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. As of December 31, 2018 and 2017, the Company’s subsidiaries and VIE collectively attributed none of retained earnings for their statutory reserves, respectively due to operation losses for both years. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 11 – Commitments and contingencies Contingencies From time to time, the Company’s VIE Ouruixi maybe a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. In December 2018, Beijing Ouruixi signed a bank acceptance pledge contract with Shengjing Bank—Tianjin Branch and pledged Beijing Ouruixi's 30 million RMB time deposit certificate to the bank for Tianjin Guangtai Changxin International Trading Co. which issued a 30 million RMB acceptance bill at the bank, and Beijing Ouruixi provided pledge guarantee. The maturity date of the bill is March 18 and March 25, 2019. After the maturity date, the company guarantees were automatically released. The Company did not, however, accrue any liability in connection with such guarantee because the borrowers have been current in its repayment obligation and the Company has not experienced any losses from providing such guarantee. As of the date of this report, the Company has evaluated the guarantee and has concluded that the likelihood of having to make any payments under the guarantee agreement is remote. Variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the Company’s subsidiaries and VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the Contractual Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances. Commitments The Company has long term operating leases for its offices starting 2019. At December 31, 2018, total future minimum annual lease payments under operating leases were as follows, by years: Twelve months ending December 31, 2019 $ 73,331 Twelve months ending December 31, 2020 52,308 Thereafter - Total $ 125,639 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 12 – Subsequent events The Company has evaluated subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Consolidation, Policy [Policy Text Block] | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprise ("WFOE") and variable interest entities ("VIEs") over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. |
Liquidity, Policy [Policy Text Block] | (c) Liquidity Historically, the Company finances its operations through internally generated cash and payable from related parties. As of December 31, 2018, the Company had approximately $0.5 million in cash and primarily consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use and are deposited with banks in China. Although the Company’s working capital deficit was $4.8 million, $9.2 million of which was payable to related parties. The related parties has agreed not to collect the amount due as long as the Company has working capital deficits, so the Company believes current working capital is sufficient to support its operations for the next twelve months. |
Use of Estimates, Policy [Policy Text Block] | (d) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (e) Concentration of risks and other uncertainties The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. 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. 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 maintains cash with banks in People’s Republic of China (“PRC” or “China”). In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In US, a depositor has up to $250,000 insured by the Federal Deposit Insurance Corporation (“FDIC”). As of December 31, 2018 and 2017, approximately $145,000 and $4,800 of the Company’s cash held by financial institutions were insured, and the remaining balance of approximately $4,670,000 and $nil were not insured. None of the Company’s customers individually accounted for more than 10% of total sales for the year ended December 31, 2018. One of the Company’s customers, a related party individually accounted for 96.7% of total sales of the Company, disposed for the year ended December 31, 2017. None of the Company’s suppliers individually accounted for more than 10% of the total purchases for the year ended December 31, 2018. Three of the Company’s suppliers, all related parties, accounted for 98.5% of the total purchases for the year ended December 31, 2017. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (f) Foreign currency translation and other comprehensive income The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries in China use the local currency, Renminbi (“RMB”), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income amounted to $3.21 million and $2.94 million as of December 31, 2018 and December 31, 2017, respectively. The balance sheet amounts, with the exception of equity at December 31, 2018 and 2017 were translated at 6.88 RMB and 6.51 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the years ended December 31, 2018 and 2017 were 6.61 RMB and 6.76 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (g) Financial instruments The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: 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 assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The Company did not identify any other assets or liabilities that are required to be presented on the balance sheet at fair value. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (h) Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits and time deposit in banks with original maturities of three months or less than three months. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | (i) Accounts receivable and allowance for doubtful accounts Accounts receivable include trade accounts due from customers. An allowance for doubtful accounts is established and recorded based on managements’ assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Prepaid Expenses, Policy [Policy Text Block] | (j) Prepaid Expenses Prepaid expenses represents advance payments made to vendors for services such as rent, consulting and certification. |
Property, Plant and Equipment, Policy [Policy Text Block] | (k) Equipment, net Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows: Office equipment 5 Years The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. |
Investment, Policy [Policy Text Block] | (l) Investments in unconsolidated entities Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method. On December 28, 2015 General Steel (China) Co., Ltd sold its 32% equity interest in Tianwu General Steel Material Trading Co., Ltd. to Tongyong Shengyuan, one of the Company’s wholly owned subsidiaries, for $14.9 million (RMB 96.6 million). As of December 31, 2018, Tongyong Shengyuan’s net investment in the unconsolidated entity was approximately $13.0 million. Total investment income (loss) in unconsolidated subsidiaries which was included in “Income (Loss) from equity investment” in the consolidated statements of operations and comprehensive income, amounted to approximately $(1.0) million and $1.0 million for the years ended December 31, 2018 and 2017, respectively. The Company performed significance tests in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as significant equity investee, the condensed financial statements of Tianwu is presented as follows: CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) For the year ended December 31, 2018 2017 CURRENT ASSETS: Cash $ 243 $ 705 Other receivables, net 5,229 26,855 Other receivables - related party 64,825 - Prepayments 1,060 40,058 Inventory 5 5 Total current assets 71,362 67,623 Property and equipment, net 5 - Investment 605 - Operations held for sale 27,519 30,081 TOTAL ASSETS $ 99,491 $ 97,704 CURRENT LIABILITIES: Accounts payable $ - $ 1,366 Other payable - related party 3,965 - Short term loans 39,254 3,074 Other payables and accrued liabilities 14,330 8,824 Customer deposits 1,146 - Taxes payable 259 49 Total current liabilities 58,954 13,313 NON-CURRENT LIABILITIES Long term loans - 38,426 Total liabilities 58,954 51,739 Equity 40,537 45,965 TOTAL EQUITY AND LIABILITIES $ 99,491 $ 97,704 CONDENSED CONSOLIDTED STATEMENT OF INCOME (In thousands) For the year ended December 31, 2018 2017 NET SALES $ 69 $ 2,614 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 291 239 FINANCE EXPENSES 5,156 7,087 INTEREST INCOME (3,278 ) (69 ) TOTAL EXPENSES 2,169 7,257 LOSS BEFORE PROVISION FOR INCOME TAXES (2,100 ) (4,643 ) PROVISION FOR INCOME TAXES - 18 NET LOSS FOR CONTINUING OPERATIONS (2,100 ) (4,661 ) NET INCOME(LOSS) FROM OPERATIONS HELD FOR SALE (955 ) 7,939 NET INCOME(LOSS) $ (3,055 ) 3,278 |
Revenue Recognition, Policy [Policy Text Block] | (m) Revenue recognition For the year ended December 31 2017, sales is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product. Gross versus net revenue reporting In the normal course of the Company’s trading business, the Company orders directly the iron ore, nickel-iron-manganese alloys, and other steel-related products from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the steel-related products delivery, (ii) establishing the selling prices for delivery of the steel-related products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore report revenues and cost of revenues on a net basis. For the year ended December 31, 2017, the Company had gross sales of $13.81 million, of from operations disposed which $13.4 million were related party sales. Net loss for related party sales were $6.31 million and $0.17 million for non related party. See details of related party sales and purchases in Note 9. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (FASB ASC Topic 606) using the modified retrospective method for contracts that were not completed as of January 1, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized over time. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no difference in the pattern of revenue recognition. |
Discontinued Operations, Policy [Policy Text Block] | (n) Operations disposed In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. On December 31, 2017, the Company sold Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. The result of operations was presented as operations disposed on December 31, 2017 in the consolidated financial statements. The net deficiency of Shuangsi as of December 31, 2017 is as follows: (In thousands) December 31, 2017 CURRENT ASSETS: Cash $ 6 Prepaid taxes 1,048 Receivables 147 Total current assets 1,201 CURRENT LIABILITIES: Other payable and accrued liabilities 2,654 Other payables - related parties 2,008 Total current liabilities 4,662 Accumulated other comprehensive income 130 Total net deficiency (3,331 ) Net consideration - Gain in disposal of subsidiary $ (3,331 ) Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the years ended December 31, 2018 and 2017. For the years ended December 31, Operations Disposed – Tianjin Shuangsi: 2018 2017 (In thousands) NET PROFIT (LOSS) $ - $ (6,311 ) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES - 20 INCOME (LOSS) FROM OPERATIONS - (6,331 ) OTHER EXPENSE Finance/interest expense - 1 Other expense, net - 1 LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST - (6,332 ) PROVISION FOR INCOME TAXES - - NET LOSS FROM OPERATIONS DISPOSED - (6,332 ) Less: Net loss attributable to noncontrolling interest from operations disposed - - NET LOSS FROM OPERATIONS DISPOSED $ - $ (6,332 ) |
Reclassification, Policy [Policy Text Block] | (o) Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. |
Earnings Per Share, Policy [Policy Text Block] | (p) Earnings (loss) per share The Company has adopted the accounting principles generally accepted in the United States regarding earnings per share (“EPS”), which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share. Basic earnings (loss) per share are computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. |
Treasury Stock [Policy Text Block] | (q) Treasury Stock Treasury stock consists of shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method. The Company has repurchased 494,462 total shares of its common stock, given retroactive effect to the 1-for-5 reverse stock split effective on October 29, 2015, under the share repurchase plan approved by the Board of Directors in December 2010. |
Income Tax, Policy [Policy Text Block] | (r) Income taxes The Company accounts for income taxes in accordance with the accounting principles generally accepted in the United States for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The accounting principles generally accepted in the United States for accounting for uncertainty in income taxes clarify the accounting and disclosure for uncertain tax positions. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of December 31, 2018, the Company’s income tax returns for December 31, 2017, 2016, 2015 and 2014 remain subject to examination by the taxing authorities. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (s) Share-based compensation The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with the accounting standards regarding accounting for stock-based compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. |
New Accounting Pronouncements, Policy [Policy Text Block] | (t) Recently issued accounting pronouncements adopted In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The update requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It eliminated the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is require to be disclosed for financial instruments measured at amortized cost on the balance sheet. For public entities, the ASU is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The objective is to clarify the two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for these areas. The ASU affects the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of ASU 2014-09 by one year. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. See Note 2 (m) for details. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated and determined that the adoption did not have a material effect on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company has evaluated and determined that the adoption of this ASU did not have a material effect on the Company’s financial statements. (u) Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of the adoption of this accounting standard to its consolidated financial statement. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the year ending December 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements. |
Organization and Operations (Ta
Organization and Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block] | The accompanying consolidated financial statements reflect the activities of the Company’s subsidiaries and VIEs: Subsidiary/VIE Place of incorporation Percentage of Ownership General Steel Investment Co., Ltd. British Virgin Islands 100.0 % Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”) PRC 100.0 % Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)* PRC - Fresh Human Global Ltd. (“Fresh Human”) Cayman 100.0 % Tuotuo River HK Limited (“Tuotuo River”) Hong Kong 100.0 % Beijing Qianhaitong Technology Development Co., Ltd. (“Tuotuo River WFOE”) PRC 100.0 % Beijing Ouruixi Medical Technology Co., Ltd. (“Beijing Ouruixi”) PRC VIE *Tianjin Shuangsi was disposed on December 31, 2017 and its results of operations were presented as operations disposed for the year ended December 31, 2017. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule Of Property Plant and Equipment Estimated Useful Life [Table Text Block] | The estimated useful lives are as follows: Office equipment 5 Years |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The Company performed significance tests in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as significant equity investee, the condensed financial statements of Tianwu is presented as follows: CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) For the year ended December 31, 2018 2017 CURRENT ASSETS: Cash $ 243 $ 705 Other receivables, net 5,229 26,855 Other receivables - related party 64,825 - Prepayments 1,060 40,058 Inventory 5 5 Total current assets 71,362 67,623 Property and equipment, net 5 - Investment 605 - Operations held for sale 27,519 30,081 TOTAL ASSETS $ 99,491 $ 97,704 CURRENT LIABILITIES: Accounts payable $ - $ 1,366 Other payable - related party 3,965 - Short term loans 39,254 3,074 Other payables and accrued liabilities 14,330 8,824 Customer deposits 1,146 - Taxes payable 259 49 Total current liabilities 58,954 13,313 NON-CURRENT LIABILITIES Long term loans - 38,426 Total liabilities 58,954 51,739 Equity 40,537 45,965 TOTAL EQUITY AND LIABILITIES $ 99,491 $ 97,704 CONDENSED CONSOLIDTED STATEMENT OF INCOME (In thousands) For the year ended December 31, 2018 2017 NET SALES $ 69 $ 2,614 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 291 239 FINANCE EXPENSES 5,156 7,087 INTEREST INCOME (3,278 ) (69 ) TOTAL EXPENSES 2,169 7,257 LOSS BEFORE PROVISION FOR INCOME TAXES (2,100 ) (4,643 ) PROVISION FOR INCOME TAXES - 18 NET LOSS FOR CONTINUING OPERATIONS (2,100 ) (4,661 ) NET INCOME(LOSS) FROM OPERATIONS HELD FOR SALE (955 ) 7,939 NET INCOME(LOSS) $ (3,055 ) 3,278 On December 31, 2017, the Company sold Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. The result of operations was presented as operations disposed on December 31, 2017 in the consolidated financial statements. The net deficiency of Shuangsi as of December 31, 2017 is as follows: (In thousands) December 31, 2017 CURRENT ASSETS: Cash $ 6 Prepaid taxes 1,048 Receivables 147 Total current assets 1,201 CURRENT LIABILITIES: Other payable and accrued liabilities 2,654 Other payables - related parties 2,008 Total current liabilities 4,662 Accumulated other comprehensive income 130 Total net deficiency (3,331 ) Net consideration - Gain in disposal of subsidiary $ (3,331 ) Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the years ended December 31, 2018 and 2017. For the years ended December 31, Operations Disposed – Tianjin Shuangsi: 2018 2017 (In thousands) NET PROFIT (LOSS) $ - $ (6,311 ) SELLING, GENERAL AND ADMINISTRATIVE EXPENSES - 20 INCOME (LOSS) FROM OPERATIONS - (6,331 ) OTHER EXPENSE Finance/interest expense - 1 Other expense, net - 1 LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST - (6,332 ) PROVISION FOR INCOME TAXES - - NET LOSS FROM OPERATIONS DISPOSED - (6,332 ) Less: Net loss attributable to noncontrolling interest from operations disposed - - NET LOSS FROM OPERATIONS DISPOSED $ - $ (6,332 ) |
Variable interest entity (Table
Variable interest entity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of VIE's consolidated assets and liabilities [Table Text Block] | The carrying amount of the VIE’s consolidated assets and liabilities are as follows: December 31, 2018 December 31, 2017 Current assets $ 4,438,916 $ 17,781 Total assets 4,448,974 17,781 Total liabilities (259,317 ) (126,966 ) Net assets $ 4,189,657 $ (109,185 ) December 31, 2018 December 31, 2017 Current liabilities: Other payables and accrued liabilities $ 25,667 $ 2,796 Other payable – related party 233,373 122,948 Taxes payable 277 1,222 Total current liabilities 259,317 126,966 Total liabilities $ 259,317 $ 126,966 |
Schedule Operating results of the VIE's [Table Text Block] | The summarized operating results of the VIE’s are as follows: For the year ended December 31, 2018 For the year ended December 31, 2017 Operating revenues $ 59,959 $ 22,194 Operating expenses $ 222,010 $ 45,934 Loss from operations $ (162,051 ) $ (23,740 ) Net loss $ (162,093 ) $ (23,164 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | Cash and cash equivalents consisted of the following as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Cash and cash equivalents: Cash in bank and on hand $ 459 $ 5 Time deposit – with original maturities less than three months 4,362 - Total Cash and cash equivalents: $ 4,821 $ 5 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivables, net of allowance for doubtful accounts consists of the following: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Accounts receivable $ 55 $ - Less: allowance for doubtful accounts - - Net accounts receivable $ 55 $ - |
Other payable and accrued lia_2
Other payable and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Other payable and accrued liabilities consist of the following: December 31, 2018 December 31, 2017 (in thousands) (in thousands) Salary payable $ 142 $ 142 Short term payable, no interest due on demand 37 1,480 Professional fees 364 508 Other payable and accrued liabilities, net $ 543 $ 2,130 |
Related party transactions an_2
Related party transactions and balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Party Sales [Table Text Block] | a. The following chart summarized revenue from related parties for the years ended December 31, 2018 and 2017. Name of related parties Relationship For the year ended December 31, 2018 For the years ended December 31, 2017 (in thousands) (in thousands) Tianjin Dazhen Industry Co., Ltd Partially owned by CEO through indirect shareholding - (45 ) Tianjin Hengying Trading Co., Ltd Partially owned by CEO through indirect shareholding - 13,360 Tianjin Qiu Steel Investment Co., Ltd Partially owned by CEO through indirect shareholding - 77 Total $ - $ 13,392 Less: Sales to related parties from operations disposed - (13,392 ) Sales–related parties – continuing operations $ - $ - *The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu. |
Schedule Of Related Party Purchases [Table Text Block] | b. The following charts summarize purchases from related parties for the years ended December 31, 2018 and 2017. Name of related parties Relationship For the year ended December 31, 2018 For the years ended December 31, 2017 (in thousands) (in thousands) Wendlar Tianjin Industry Co., Ltd Partially owned by CEO through indirect shareholding - 3,063 Tianjin Dazhen Trading Co., Ltd Partially owned by CEO through indirect shareholding - 7,169 General Steel (China) Co., Ltd Partially owned by CEO through indirect shareholding - 9,607 Total $ - $ 19,839 Less Purchases from related parties from operations disposed - (19,839 ) Purchases–related parties–continuing operations $ - $ - |
Schedule Of Related Party Transactions, Other Payable Related Parties [Table Text Block] | a. Other payables – related parties: Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the . Name of related parties Relationship December 31, 2018 December 31, 2017 (in thousands) (in thousands) Yangpu Capital Automobile Partially owned by CEO through indirect shareholding 95 95 General Steel (China) Co., Ltd Partially owned by CEO through indirect shareholding 7,388 6,881 Zuosheng Yu CEO 1,471 1,469 Baoning Shi Major shareholder 173 - Beijing Ronghuida Investment Consulting Co., Ltd. Common control under major shareholder 60 - Beijing Hanjiang International Investment Consulting Co., Ltd. Common control under major shareholder 1 - Total $ 9,188 $ 8,445 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company has long term operating leases for its offices starting 2019. At December 31, 2018, total future minimum annual lease payments under operating leases were as follows, by years: Twelve months ending December 31, 2019 $ 73,331 Twelve months ending December 31, 2020 52,308 Thereafter - Total $ 125,639 |
Organization and Operations (De
Organization and Operations (Details) | 12 Months Ended | |
Dec. 31, 2018 | ||
General Steel Investment Co Ltd [Member] | ||
Entity Incorporation, State Country Name | British Virgin Islands | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Tongyong Shengyuan Tianjin Technology Development Co., Ltd. [Member] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Tianjin Shuangsi Trading Co Ltd [Member] | ||
Entity Incorporation, State Country Name | PRC | [1] |
Equity Method Investment, Ownership Percentage | 0.00% | |
Fresh Human Global Ltd [Member] | ||
Entity Incorporation, State Country Name | Cayman | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Tuotuo River HK Limited [Member] | ||
Entity Incorporation, State Country Name | Hong Kong | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Beijing Qianhaitong Technology Development Co Ltd [Member] | ||
Entity Incorporation, State Country Name | PRC | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Beijing Ouruixi Medical Technology Co Ltd [Member] | ||
Entity Incorporation, State Country Name | PRC | |
[1] | Tianjin Shuangsi was disposed on December 31, 2017 and its results of operations were presented as operations disposed for the year ended December 31, 2017. |
Organization and Operations (_2
Organization and Operations (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 28, 2015 | |
Business Acquisition, Share Price | $ 0.001 | ||
Fresh Human Global Ltd [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 51.10% | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 55.50% | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 4,189,657 | ||
Fresh Human Global Ltd [Member] | Restricted Stock [Member] | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 4,175,095 | ||
Beijing Ouruixi Medical Technology Co Ltd [Member] | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 4,175,095 | ||
General Steel Investment Co Ltd [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
Tianwu General Steel Material Trading Co., Ltd [Member] | |||
Equity Method Investment, Ownership Percentage | 32.00% | 32.00% |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Office equipment [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of significant accoun_5
Summary of significant accounting policies (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | ||
Cash | $ 459,000 | $ 5,000 |
Total current assets | 4,895,869 | 7,760 |
OTHER ASSETS: | ||
Property and equipment, net | 217 | 217 |
TOTAL ASSETS | 17,878,292 | 14,716,658 |
CURRENT LIABILITIES: | ||
Other payable - related party | 9,187,882 | 8,445,288 |
Taxes payable | 277 | 0 |
Total current liabilities | 9,730,851 | 10,575,042 |
NON-CURRENT LIABILITIES | ||
Equity | 8,147,441 | 4,141,616 |
TOTAL EQUITY AND LIABILITIES | 17,878,292 | 14,716,658 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 224,220 | 238,414 |
FINANCE EXPENSES | 151 | 1,415 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (1,202,423) | 808,971 |
PROVISION FOR INCOME TAXES | 0 | 0 |
NET LOSS FOR CONTINUING OPERATIONS | (1,202,423) | 808,971 |
NET INCOME(LOSS) FROM OPERATIONS HELD FOR SALE | 0 | (6,331,571) |
NET INCOME (LOSS) | (1,202,423) | (5,522,600) |
Tianwu General Steel Material Trading Co Ltd [Member] | ||
CURRENT ASSETS: | ||
Cash | 243,000 | 705,000 |
Other receivables, net | 5,229,000 | 26,855,000 |
Other receivables - related party | 64,825,000 | 0 |
Prepayments | 1,060,000 | 40,058,000 |
Inventory | 5,000 | 5,000 |
Total current assets | 71,362,000 | 67,623,000 |
OTHER ASSETS: | ||
Property and equipment, net | 5,000 | 0 |
Investment | 605,000 | 0 |
Operations held for sale | 27,519,000 | 30,081,000 |
TOTAL ASSETS | 99,491,000 | 97,704,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 0 | 1,366,000 |
Other payable - related party | 3,965,000 | 0 |
Short term loans | 39,254,000 | 3,074,000 |
Other payables and accrued liabilities | 14,330,000 | 8,824,000 |
Customer deposits | 1,146,000 | 0 |
Taxes payable | 259,000 | 49,000 |
Total current liabilities | 58,954,000 | 13,313,000 |
NON-CURRENT LIABILITIES | ||
Long term loans | 0 | 38,426,000 |
Total liabilities | 58,954,000 | 51,739,000 |
Equity | 40,537,000 | 45,965,000 |
TOTAL EQUITY AND LIABILITIES | 99,491,000 | 97,704,000 |
NET SALES | 69,000 | 2,614,000 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 291,000 | 239,000 |
FINANCE EXPENSES | 5,156,000 | 7,087,000 |
INTEREST INCOME | (3,278,000) | (69,000) |
TOTAL EXPENSES | 2,169,000 | 7,257,000 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (2,100,000) | (4,643,000) |
PROVISION FOR INCOME TAXES | 0 | 18,000 |
NET LOSS FOR CONTINUING OPERATIONS | (2,100,000) | (4,661,000) |
NET INCOME(LOSS) FROM OPERATIONS HELD FOR SALE | (955,000) | 7,939,000 |
NET INCOME (LOSS) | $ (3,055,000) | $ 3,278,000 |
Summary of significant accoun_6
Summary of significant accounting policies (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
CURRENT ASSETS: | ||
Cash | $ 5,359 | $ 0 |
Shuangsi Operations [Member] | ||
CURRENT ASSETS: | ||
Cash | 6,000 | |
Prepaid taxes | 1,048,000 | |
Receivables | 147,000 | |
Total current | 1,201,000 | |
CURRENT LIABILITIES: | ||
Other payable and accrued liabilities | 2,654,000 | |
Other payables - related parties | 2,008,000 | |
Total current liabilities | 4,662,000 | |
Accumulated other comprehensive income | 130,000 | |
Total net deficiency | (3,331,000) | |
Net consideration | 0 | |
Gain in disposal of subsidiary | $ (3,331,000) |
Summary of significant accoun_7
Summary of significant accounting policies (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER EXPENSE | ||
NET LOSS FROM OPERATIONS DISPOSED | $ 0 | $ (6,331,571) |
Tianjin Shuangsi [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
NET PROFIT (LOSS) | 0 | (6,311,000) |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 0 | 20,000 |
INCOME (LOSS) FROM OPERATIONS | 0 | (6,331,000) |
OTHER EXPENSE | ||
Finance/interest expense | 0 | 1,000 |
Other expense, net | 0 | 1,000 |
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | 0 | (6,332,000) |
PROVISION FOR INCOME TAXES | 0 | 0 |
NET LOSS FROM OPERATIONS DISPOSED | 0 | (6,332,000) |
Less: Net loss attributable to noncontrolling interest from operations disposed | 0 | 0 |
NET LOSS FROM OPERATIONS DISPOSED | $ 0 | $ (6,332,000) |
Summary of significant accoun_8
Summary of significant accounting policies (Details Textual) | 12 Months Ended | |||||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / shares¥ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017USD ($)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017¥ / shares | Dec. 28, 2015USD ($) | Dec. 28, 2015CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | $ 3,210,000 | $ 2,940,000 | ||||||
Foreign Currency Exchange Translation Rate Balance Sheet Items | (per share) | $ 1 | $ 1 | ¥ 6.88 | ¥ 6.51 | ||||
Foreign Currency Exchange Average Translation Rate | ¥ / shares | $ 6.61 | ¥ 6.76 | ||||||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | $ (1,000,000) | $ 1,000,000 | ||||||
Treasury Stock, Shares | shares | 494,462 | 494,462 | 494,462 | 494,462 | 494,462 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 12,972,148 | $ 12,972,148 | $ 14,708,681 | ¥ 14,708,681 | ||||
Cash, FDIC Insured Amount | 145,000 | 145,000 | 4,800 | 4,800 | ||||
Cash, Uninsured Amount | 4,670,000 | 4,670,000 | 0 | 0 | ||||
Cash and Cash Equivalents, at Carrying Value | 4,820,832 | 4,820,832 | $ 5,260 | ¥ 5,260 | ||||
Related Party [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Revenues | 6,310,000 | |||||||
NonRelated Party [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Revenues | 170,000 | |||||||
Continuing Operations [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Revenue Gross | 13,810,000 | |||||||
Discontinued Operations [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Risk, Percentage | 96.70% | |||||||
Revenue Gross | 13,400,000 | |||||||
China GDP [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash, FDIC Insured Amount | ¥ | ¥ 500,000 | |||||||
US | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||||||
Accounts Payable [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Working Capital Deficit | 4,800,000 | 4,800,000 | ||||||
Due to Other Related Parties, Current | $ 9,200,000 | $ 9,200,000 | ||||||
Accounts Payable [Member] | Supplier One Concentration Risk [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Risk, Percentage | 10.00% | 98.50% | ||||||
Accounts Payable [Member] | Supplier One Concentration Risk [Member] | Discontinued Operations [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration Risk, Percentage | 10.00% | |||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Salvage Value, Percentage | 5.00% | 5.00% | 5.00% | |||||
Percentage Of Ownership, Significant Influence | 50.00% | 50.00% | 50.00% | |||||
Value Added Tax Rate | 17.00% | |||||||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Salvage Value, Percentage | 3.00% | 3.00% | 3.00% | |||||
Percentage Of Ownership, Significant Influence | 20.00% | 20.00% | 20.00% | |||||
Value Added Tax Rate | 13.00% | |||||||
Tianwu General Steel Material Trading Co., Ltd [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 32.00% | 32.00% | 32.00% | 32.00% | ||||
Due from Related Parties | $ 14,900,000 | ¥ 96,600,000 | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 13,000,000 | $ 13,000,000 |
Variable interest entity ("VI_2
Variable interest entity ("VIE") (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | $ 4,438,916 | $ 17,781 |
Total assets | 4,448,974 | 17,781 |
Total liabilities | (259,317) | (126,966) |
Net assets | 4,189,657 | (109,185) |
Current liabilities: | ||
Other payables and accrued liabilities | 25,667 | 2,796 |
Other payable – related party | 233,373 | 122,948 |
Taxes payable | 277 | 1,222 |
Total current liabilities | 259,317 | 126,966 |
Total liabilities | $ 259,317 | $ 126,966 |
Variable interest entity ("VI_3
Variable interest entity ("VIE") (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues | $ 59,959 | $ 22,194 |
Operating expenses | 222,010 | 45,934 |
Loss from operations | (162,051) | (23,740) |
Net loss | $ (162,093) | $ (23,164) |
Variable interest entity ("VI_4
Variable interest entity ("VIE") (Details Textual) | Dec. 19, 2018 |
Beijing Ouruixi [Member] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash in bank and on hand | $ 459,000 | $ 5,000 |
Time deposit – with original maturities less than three months | 4,362,000 | 0 |
Total Cash and cash equivalents: | $ 4,820,832 | $ 5,260 |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Textual) ¥ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Time Deposits | $ 4,400,000 | ¥ 30 | $ 0 |
Cash | 459,000 | $ 5,000 | |
Third Party Trust Account [Member] | |||
Cash | $ 453,000 |
Accounts receivable, net - (Det
Accounts receivable, net - (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable | $ 55,000 | $ 0 |
Less: allowance for doubtful accounts | 0 | 0 |
Net accounts receivable | $ 55,246 | $ 0 |
Other payable and accrued lia_3
Other payable and accrued liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Salary payable | $ 142,000 | $ 142,000 |
Short term payable, no interest due on demand | 37,000 | 1,480,000 |
Professional fees | 364,000 | 508,000 |
Other payable and accrued liabilities, net | $ 542,692 | $ 2,129,754 |
Supplemental disclosure of ca_2
Supplemental disclosure of cash flow information (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Supplemental Disclosure Of Cash Flow Information [Line Items] | |
Gain (Loss) on Disposition of Stock in Subsidiary | $ | $ 3,330 |
Stock Issued During Period, Shares, Issued for Services | shares | 200,000 |
Taxes (Details Textual)
Taxes (Details Textual) | 1 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Taxes [Line Items] | |||
Percentage Of Deferred Tax Asset | 100.00% | 100.00% | |
Net operating losses carried forward | $ 6,700,000 | ||
Deferred Tax Assets Valuation Period | 5 years | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 35.00% | ||
Scenario, Plan [Member] | |||
Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 21.00% | ||
UNITED STATES [Member] | |||
Taxes [Line Items] | |||
Percentage Of Deferred Tax Asset | 100.00% | 100.00% | |
Deferred Tax Assets, Valuation Allowance | $ 2,600,000 | ||
Hong Kong [Member] | |||
Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | ||
Subsidiaries [Member] | |||
Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | ||
Beijing Ouruixi [Member] | |||
Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 185,257 | ¥ 1,228,471 |
Related party transactions an_3
Related party transactions and balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $ 0 | $ 13,392 |
Less: Sales to related parties from operations disposed/held for sale | 0 | (13,392) |
Sales–related parties – continuing operations | $ 0 | 0 |
Tianjin Dazhen Industry Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Revenue from Related Parties | $ 0 | (45) |
Tianjin Qiu Steel Investment Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Revenue from Related Parties | $ 0 | 77 |
Tianjin Hengying Trading Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Revenue from Related Parties | $ 0 | $ 13,360 |
Related party transactions an_4
Related party transactions and balances (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Purchases from Related Party | $ 0 | $ 19,839 |
Less: Purchases from related parties from operations disposed/held for sale | 0 | (19,839) |
Sales–related parties – continuing operations | $ 0 | 0 |
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel) [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Related Party Transaction, Purchases from Related Party | $ 0 | 3,063 |
Tianjin Hengying Trading Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Related Party Transaction, Purchases from Related Party | $ 0 | 7,169 |
General Steel (China) Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Related Party Transaction, Purchases from Related Party | $ 0 | $ 9,607 |
Tianjin Dazhen Trading Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding |
Related party transactions an_5
Related party transactions and balances (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Other payables - related parties | $ 9,188 | $ 8,445 |
Yangpu Capital Automobile [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Other payables - related parties | $ 95 | 95 |
General Steel (China) Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Partially owned by CEO through indirect shareholding | |
Other payables - related parties | $ 7,388 | 6,881 |
Zuosheng Yu [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | CEO | |
Other payables - related parties | $ 1,471 | 1,469 |
Baoning Shi [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Major shareholder | |
Other payables - related parties | $ 173 | 0 |
Beijing Ronghuida Investment Consulting Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Common control under major shareholder | |
Other payables - related parties | $ 60 | 0 |
Beijing Hanjiang International Investment Consulting Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Relationship | Common control under major shareholder | |
Other payables - related parties | $ 1 | $ 0 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Aug. 24, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Issued During Period, Shares, Issued for Services | 200,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Percentage Of After Tax Profits Retained | 10.00% | ||||
Percentage Of Statutory Reserve Funds Of Registered Capital | 50.00% | ||||
Financial Advisory and Research Coverage Services [Member] | |||||
Stock Issued During Period, Shares, Issued for Services | 200,000 | ||||
Hummingbird Holdings Limited [Member] | |||||
Stock Issued During Period, Shares, New Issues | 14,285,715 | 7,352,941 | |||
Sale of Stock, Price Per Share | $ 0.035 | $ 0.034 | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Proceeds from Issuance of Common Stock | $ 500,000 | $ 250,000 | |||
Fresh Human [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 4,175,095 | ||||
Sale of Stock, Percentage of Ownership before Transaction | 51.10% | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | ||||
Sale of Stock, Percentage of Ownership after Transaction | 55.50% |
Commitments and contingencies_2
Commitments and contingencies (Details) | Dec. 31, 2018USD ($) |
Commitment And Contingencies [Line Items] | |
Twelve months ending December 31, 2019 | $ 73,331 |
Twelve months ending December 31, 2020 | 52,308 |
Thereafter | 0 |
Total | $ 125,639 |
Commitments and contingencies_3
Commitments and contingencies (Details Textual) ¥ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Commitment And Contingencies [Line Items] | |||
Time Deposits | $ 4,400,000 | ¥ 30 | $ 0 |
Bills Payable | ¥ 30 |