XML 37 R14.htm IDEA: XBRL DOCUMENT v3.19.1
Construction in Progress
 12 Months Ended
Dec. 31, 2018
Receivables, Long-term Contracts or Programs [Abstract]  
CONSTRUCTION IN PROGRESS

8. CONSTRUCTION IN PROGRESS

 

Construction in progress was for constructing power generation systems. As of December 31, 2018 and 2017, the Company’s construction in progress included:

 

   2018   2017 
Xuzhou Huayu  $23,778,899   $24,976,178 
Xuzhou Tian’an   38,380,969    37,814,637 
Boxing County Chengli   -    32,375,158 
Less: assets impairment allowance   (19,577,691)   - 
Total  $42,582,177   $95,165,973 

 

As of December 31, 2018, the Company was committed to pay an additional $11.66 million for the Xuzhou Huayu project; however, on February 15, 2019, Zhonghong transferred Xuzhou Huayu Project to Mr. Bai for RMB 120,000,000 ($17.52 million). Mr. Bai agreed to transfer all the equity shares of his wholly owned company, Xi’an Hanneng, to the “HYREF” as repayment for the loan made by Xi’an Zhonghong to HYREE as consideration for the transfer of the Xuzhou Huayu Project (see Note 12).

 

As of December 31, 2018, the Company was committed to pay an additional $4.04 million for the Xuzhou Tian’an project.

 

The Chengli project finished construction, and was transferred to the Company’s fixed assets at a cost of $35.24 million and ready to be put into operation as of December 31, 2018; the owner of the Chengli Project changed from Chengli to Shandong Boxing Shengli Technology Company Ltd. (“Shengli”) in 2018. On January 22, 2019, Xi’an Zhonghong, transferred Chengli CDQ WHPG station as the repayment of loan at RMB 188,639,400 ($27.54 million) to HYREF (see Note 12).