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Noncontrolling Interest and Long Term Payable
12 Months Ended
Dec. 31, 2019
Noncontrolling Interest [Abstract]  
NONCONTROLLING INTEREST AND LONG TERM PAYABLE

15. NONCONTROLLING INTEREST AND LONG TERM PAYABLE

 

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%.

 

On December 29, 2018, Shanghai TCH entered into a Share Transfer Agreement with HYREF, pursuant to which HYREF transferred its 10% ownership in Xi'an Zhonghong to Shanghai TCH (a wholly owned subsidiary of the Company) for RMB 3 million ($0.44 million), and Shanghai TCH record the purchase price as long term payable as of December 31, 2019. On January 22, 2019, HYREF completed the transfer of its 10% ownership in Xi'an Zhonghong to Shanghai TCH, Xi'an Zhongong then became a 100% subsidiary of Shanghai TCH. The net asset of 10% NCI of Xi'an Zhonghong was $3.54 million. The Company did not record any gain or loss for this purchase as the controlling interest did not change.