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Related Party Transactions and Relationships and Transactions With Certain Other Parties (Tables)
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3 Months Ended |
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Mar. 31, 2014
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| Related Party Transactions [Abstract] |
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| Related party transactions, Relationships |
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Name of parties
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Relationship
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Mr. Chunfeng Tao
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Majority stockholder
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| |
|
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Mr. Jicun Wang
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Principal stockholder
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|
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Mr. Peijun Chen
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Principal stockholder
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Ms. Sumei Chen
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Member of the Company’s Board of Supervisors and spouse of Mr. Wang
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| |
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Ms. Yushui Huang
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Vice President of Administration, Ningbo Keyuan
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| |
|
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Ningbo Pacific Ocean Shipping Co., Ltd
(Ningbo Pacific)
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100% ownership by Mr. Wang
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Ningbo Hengfa Metal Product Co., Ltd
(Ningbo Hengfa, former name "Ningbo Tenglong")
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100% ownership by Mr. Chen
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|
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Ningbo Xinhe Logistic Co., Ltd
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10% ownership by Ms. Huang
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| Related party transactions and amounts outstanding with the related parties |
| |
|
Three months ended
March 31
|
|
| |
|
2014
|
|
|
2013
|
|
| |
|
($’000) |
|
|
($’000) |
|
| |
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Purchase of transportation services (a)
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|
$ |
1,127 |
|
|
$ |
628 |
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|
Loan guarantee fee (b)
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|
$ |
- |
|
|
$ |
23 |
|
|
Advance payments to related parties (c)
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|
$ |
41 |
|
|
$ |
698 |
|
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Amounts due to related parties (d)
|
|
$ |
238 |
|
|
$ |
- |
|
(a) The Group purchased transportation services of $1.1 million and approximately $0.6 million from Ningbo Xinhe during the three months ended March 31, 2014 and 2013, respectively.
(b) Guarantees for Bank Loans
(c) Advance payments to related parties consist of advances made for business purposes to Mr. Tao. These amounts are unsecured interest free and due on demand.
(d) At March 31, 2014, approximately $0.2 million was due to Ningbo Xinhe.
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| Guarantees for bank loans |
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Guarantee provided during for three months ended March 31,
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|
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Bank loans Guaranteed as of
|
|
| |
|
2014
|
|
|
2013
|
|
|
March 31,
2014
|
|
|
December 31,
2013
|
|
| |
|
($’000) |
|
|
($’000) |
|
|
($’000) |
|
|
($’000) |
|
| |
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
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|
|
|
|
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Mr. Tao
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|
|
- |
|
|
|
- |
|
|
|
- |
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|
- |
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Jicun Wang and Sumei Chen
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|
|
- |
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- |
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- |
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|
- |
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Ningbo Pacific
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|
|
- |
|
|
|
- |
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$ |
- |
|
|
$ |
70,086 |
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|
Total
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|
|
- |
|
|
|
- |
|
|
$ |
- |
|
|
$ |
70,086 |
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| Relationships and transactions with certain other parties |
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Name of parties
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|
Relationship
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Ningbo Litong Petrochemical Co., Ltd
(Ningbo Litong)
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Former 12.75% nominee shareholder of Ningbo Keyuan
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Ningbo Anqi Petrochemical Co., Ltd
(Ningbo Anqi)
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A related party through September 2011 when control transferred
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Ningbo Lide Investment Co., Ltd.
(Ningbo Lide) (formerly Ningbo Kewei)
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A related party through September 2011 when control transferred
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Ningbo Kunde Petrochemical Co, Ltd.
(Ningbo Kunde)
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A related party through September 2011 when control transferred
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| Transactions and amounts outstanding with certain other parties |
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|
Three months ended
March 31,
|
|
| |
|
2014
|
|
|
2013
|
|
| |
|
($’000) |
|
|
($’000) |
|
| |
|
(Unaudited)
|
|
|
(Unaudited)
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|
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Sales of products (e)
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$ |
5,386 |
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$ |
41,072 |
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Purchase of raw materials (f)
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|
$ |
10,782 |
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$ |
26,716 |
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Guarantee for bank borrowings (g)
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$ |
- |
|
|
$ |
- |
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Loan guarantee fees (g)
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$ |
634 |
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$ |
517 |
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Amounts due to these parties (h)
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$ |
- |
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$ |
851 |
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Advance payments to these parties (i)
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$ |
33,012 |
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$ |
26,560 |
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(e) The Group sold finished products of approximately $5.4 million and $10.2 million to Ningbo Litong during the three months ended March 31, 2014 and 2013, respectively, and sold finished products of nil and $30.9 million to Ningbo Kunde during the three months ended March 31, 2014 and 2013, respectively.
(f) During the three months ended March 31, 2014, the Group purchased raw materials of approximately $10.3 million and $0.5 million from Litong and Lide, respectively. During the three months ended March 31, 2013, the Group purchased raw materials of approximately $2.7 million and $24.0 million from Kunde and Lide, respectively.
(g) Guarantees for Bank Loans
(h) At March 31, 2013, amounts due to certain other parties consist of amounts due to Kunde and Lide of $0.8 million and $0.1 million, respectively.
(i) At March 31, 3014, advance payments to these parties consist of payments to Litong and Lide of $26.7 million and $6.3 million, respectively.
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| Guarantees for bank loans with certain other parties |
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Guarantee provided during the three months ended March 31,
|
|
|
Bank loans Guaranteed as of
|
|
| |
|
2014
|
|
|
2013
|
|
|
March 31,
2014
|
|
|
March 31,
2013
|
|
| |
|
($’000) |
|
|
($’000) |
|
|
($’000) |
|
|
($’000) |
|
| |
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
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(Unaudited)
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Ningbo Litong
|
|
|
- |
|
|
$ |
- |
|
|
$ |
110,055 |
|
|
$ |
56,380 |
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Ningbo Lide
|
|
|
- |
|
|
|
- |
|
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$ |
126,397 |
|
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$ |
199,372 |
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Total
|
|
|
- |
|
|
$ |
- |
|
|
$ |
236,452 |
|
|
$ |
255,752 |
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