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Construction in Progress and Property And Equipment
 3 Months Ended
Mar. 31, 2019
Receivables, Long-term Contracts or Programs [Abstract]  
CONSTRUCTION IN PROGRESS

8. CONSTRUCTION IN PROGRESS AND PROPERTY AND EQUIPMENT

 

Construction in progress was for constructing power generation systems. As of March 31, 2019 and December 31, 2018, the Company's construction in progress included:

 

   2019   2018 
Xuzhou Huayu  $-   $23,778,899 
Xuzhou Tian'an   39,120,260    38,380,969 
Less: assets impairment allowance   (13,539,210)   (19,577,691)
Total  $25,581,050   $42,582,177 

 

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 the 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 HYREF as repayment for the loan made by Xi'an Zhonghong to HYREF as consideration for the transfer of the Xuzhou Huayu Project (see Note 12).

 

As of March 31, 2019, the Company was committed to pay an additional $4.12 million for the Xuzhou Tian'an project.

 

As of March 31, 2019 and December 31, 2018, the Company had net property and equipment (after impairment provision recorded in 2018) of approximately $28 million, which was for the Chengli project.

 

The Chengli project finished construction, and was transferred to the Company's fixed assets at a cost of $35.24 million (without impairment provision) 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 completed the transfer of Chengli CDQ WHPG station as the repayment of loan at RMB 188,639,400 ($27.54 million) to HYREF (see Note 12). However, because the loan was not deemed repaid (See Note 12 for explanation), the Company kept recording the Chengli project in its books as fixed assets for accounting purposes as of March 31, 2019.