Investments in Privately-Held Raw Material Companies (Tables)

6 Months Ended

Jun. 30, 2020

Investments in Privately-Held Raw Material Companies

Summary of investments

As of June 30, 2020, the investments are summarized below (in thousands):

	Investment Balance as of
	June 30,		December 31,		Accounting	Ownership
Company	2020		2019		Method	Percentage
Nanjing JinMei Gallium Co., Ltd.	$	592	$	592	Consolidated	**100	%
Beijing JiYa Semiconductor Material Co., Ltd.		N/A		N/A	Consolidated	*46	%
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd.		1,346		1,346	Consolidated	63	%
	$	1,938	$	1,938
Donghai County Dongfang High Purity Electronic Materials Co., Ltd.	$	1,383	$	1,326	Equity	46	%
Beijing JiYa Semiconductor Material Co., Ltd.		1,318		1,621	Equity	*39	%
Xilingol Tongli Germanium Co., Ltd.		—		—	Equity	25	%
Xiaoyi XingAn Gallium Co., Ltd.		2,351		2,367	Equity	25	%
Emeishan Jia Mei High Purity Metals Co., Ltd.		561		647	Equity	25	%
	$	5,613	$	5,961

Summary of gain on deconsolidation

	Amount
	(in thousands)
Fair value of the consideration received	$	366
Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd.		2,040
Carrying value of noncontrolling interest, net of accumulated other comprehensive income attributable to subsidiary		617
Derecognition of Beijing JiYa Semiconductor Material Co., Ltd.'s net asset		(2,848)
Gain recognized on deconsolidation of Beijing JiYa Semiconductor Material Co., Ltd.	$	175
	Amount
	(in thousands)
Fair value of the retained investment in Beijing JiYa Semiconductor Material Co., Ltd.	$	2,040
Carrying value of retained noncontrolling investment		(1,559)
Gain on retained noncontrolling investment due to remeasurement	$	481

Summarized equity method income information

AXT’s minority investment entities are not consolidated and are accounted for under the equity method. Excluding one fully impaired entity, the equity entities had the following summarized income information (in thousands) for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net revenue	$	3,605	$	4,559	$	7,558	$	11,000
Gross profit	$	958	$	1,165	$	2,026	$	1,114
Operating income (loss)	$	265	$	618	$	462	$	(1,421)
Net income (loss)	$	(160)	$	430	$	(158)	$	(2,016)