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Noncontrolling Interest
6 Months Ended
Jun. 30, 2018
Noncontrolling Interest [Abstract]  
NONCONTROLLING INTEREST

15. NONCONTROLLING INTEREST

 

On July 15, 2013, Xi’an TCH and HYREF Fund jointly established Xi’an Zhonghong New Energy Technology (“Zhonghong”) with registered capital of RMB 30 million ($4.88 million), to manage new projects. Xi’an TCH paid RMB 27 million ($4.37 million) as its contribution of the registered capital to Zhonghong. Xi’an TCH owns 90% of Zhonghong while HYREF Fund owns 10% of Zhonghong as a non-controlling interest of Zhonghong.

 

In addition, the HYREF Fund was 16.3% owned by Xi’an TCH and 1.1% owned by the Fund Management Company, and the Fund Management Company was 40% owned by Xi’an TCH as described in Note 7, which resulted in an additional indirect ownership of Xi’an TCH in Zhonghong of 1.7%; accordingly, the ultimate non-controlling interest (HYREF Fund) in Zhonghong became 8.3%. During the six and three months ended June 30, 2018, the Company had losses of $187,183 and $95,925 that were attributable to the noncontrolling interest, respectively. During the six and three months ended June 30, 2017, the Company had losses of $178,255 and $89,832 that were attributable to the noncontrolling interest, respectively.