10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 001-33717

General Steel Holdings, Inc.

(Exact name of registrant as specified in its charter)

Nevada	41-2079252
(State or other Jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or Organization)

Suite 106, Tower H,

Phoenix Place, Shuguangxili

Chaoyang District, Beijing, China 100028

(Address of Principal Executive Office, Including Zip Code)

+86 (10) 8572 3073

(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ¨   No  x

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ¨  No  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer ¨	Non-accelerated filer  ¨	Smaller reporting company x
			Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨  No  x

As of November 15, 2018, 24,774,881 (excluding 494,462 shares of treasury stock) shares of common stock, par value $0.001 per share, were outstanding.

Table of Contents

		Page
Part I.  FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements.
	Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016.	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2017 and 2016.	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016.	5
	Notes to Condensed Consolidated Financial Statements.	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	25
Item 4.	Controls and Procedures.	33
Part II. OTHER INFORMATION		34
Item 1.	Legal Proceedings.	34
Item 1A.	Risk Factors.	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	34
Item 6.	Exhibits.	34
Signatures		35

2

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2017			2016
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	5,165		$	3,797
Other receivables, net		3,100			598
Other receivables - related parties		-			40,749,746
Current assets held for sale		23,803,717			30,581,807
TOTAL CURRENT ASSETS		23,811,982			71,335,948
EQUIPMENT, NET		217			214
INVESTMENT IN UNCONSOLIDATED ENTITIES		11,588,084			12,758,610
TOTAL ASSETS	$	35,400,283		$	84,094,772
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Other payables and accrued liabilities	$	2,028,529		$	732,054
Other payables - related parties		9,296,039			49,830,622
Current liabilities held for sale		25,860,585			29,006,872
TOTAL CURRENT LIABILITIES		37,185,153			79,569,548
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIENCY):
Series A - Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of June 30, 2017 and December 31, 2016		3,093			3,093
Series B - Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2017 and December 31, 2016		-			-
Common stock, $0.001 par value, 200,000,000  shares authorized, 20,694,670 and 20,494,670 shares issued, 20,200,208 and 20,000,208 shares outstanding as of June 30, 2017 and December 31, 2016, respectively		20,695			20,495
Treasury stock, at cost, 494,462 shares as of June 30, 2017 and December 31, 2016		(839,686	)		(839,686	)
Additional paid-in-capital		1,253,624,014			1,253,384,214
Statutory reserves		1,107,010			1,107,010
Accumulated deficit		(1,258,520,847	)		(1,250,521,814	)
Accumulated other comprehensive income		2,820,851			1,371,912
TOTAL GENERAL STEEL HOLDINGS, INC. EQUITY (DEFICIENCY)		(1,784,870	)		4,525,224
TOTAL LIABILITIES AND EQUITY (DEFICIENCY)	$	35,400,283		$	84,094,772

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016

	For the three months ended						For the six months ended
	2017			2016			2017			2016
GENERAL AND ADMINISTRATIVE EXPENSES		19,314			324,400			113,557			1,682,597
LOSS FROM OPERATIONS		(19,314	)		(324,400	)		(113,557	)		(1,682,597	)
OTHER INCOME (EXPENSE)
Loss from equity investment		(757,438	)		(231,682	)		(1,459,195	)		(347,303	)
Finance/interest expense		1,143			(15	)		(867	)		(64	)
Gain from disposal of Catalon		-			-			-			6,268,930
Other income (expense), net		(756,295	)		(231,697	)		(1,460,062	)		5,921,563
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		(775,609	)		(556,097	)		(1,573,619	)		4,238,966
PROVISION FOR INCOME TAXES		-			-			-			-
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		(775,609	)		(556,097	)		(1,573,619	)		4,238,966
DISCONTINUED OPERATIONS - Note 2(n):
NET INCOME (LOSS) FROM OPERATIONS TO BE DISPOSED, net of applicable income taxes		79,720			260,236			(6,425,414	)		583,226
NET LOSS FROM OPERATIONS  DISPOSED, net of applicable income taxes		-			-			-			(2,568,935	)
NET INCOME (LOSS)		(695,889	)		(295,861	)		(7,999,033	)		2,253,257
Less: Net loss attributable to noncontrolling interest from operations disposed		-			-			-			(25,706	)
NET INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.	$	(695,889	)	$	(295,861	)	$	(7,999,033	)	$	2,278,963
NET INCOME (LOSS)	$	(695,889	)	$	(295,861	)	$	(7,999,033	)	$	2,253,257
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments		19,288			(207,228	)		1,448,939			(284,159	)
COMPREHENSIVE INCOME (LOSS)		(676,601	)		(503,089	)		(6,550,094	)		1,969,098
Less: Comprehensive loss attributable to noncontrolling interest		-			(355	)		-			(34,044	)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.	$	(676,601	)	$	(502,734	)	$	(6,550,094	)	$	2,003,142
WEIGHTED AVERAGE NUMBER OF SHARES		20,200,208			15,100,361			20,101,319			16,334,486
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Continuing operations	$	(0.04	)	$	(0.04	)	$	(0.08	)	$	0.26
Operations to be disposed	$	0.00		$	0.02		$	(0.32	)	$	0.04
Operations disposed	$	-		$	-		$	-		$	(0.16	)
Net income (loss) per share	$	(0.03	)	$	(0.02	)	$	(0.40	)	$	0.14

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016

	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(7,999,033	)	$	2,253,257
Net income (loss) from operations to be disposed		(6,425,414	)		583,226
Net loss from operations disposed		-			(2,568,935	)
Net income (loss) from continuing operations		(1,573,619	)		4,238,966
Adjustments to reconcile net loss to cash provided by (used in) operating activities from continuing operations:
Bad debt expenses		-			167,055
Share-based compensation		-			696,838
Loss from equity investment		1,459,195			347,303
Gain from disposal of Catalon		-			(6,268,930	)
Changes in operating assets and liabilities
Other receivables		(4,002	)		(6,300	)
Other payables and accrued liabilities		1,474			269,855
Taxes payable		-			1,390
Net cash used in operating activities from operations to be disposed/ operations disposed		(35,931,727	)		29,854,873
Net cash (used in) provided by operating activities		(36,048,679	)		29,301,050
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		-			(1,000	)
Net cash provided by investing activities from operations to be disposed / operations disposed		61,598			(29,864,338	)
Net cash used in investing activities		61,598			(29,865,338	)
CASH FLOWS FINANCING ACTIVITIES:
Borrowings from related parties		-			570,674
Net cash provided by financing activities from operations to be disposed / operations disposed		36,030,062			-
Net cash provided by financing activities		36,030,062			570,674
EFFECTS OF EXCHANGE RATE CHANGE IN CASH		25,740			(15,008	)
INCREASE (DECREASE) IN CASH		68,721			(8,622	)
CASH, beginning of period		3,797			42,391
CASH, end of period		72,518			33,769
Less: cash from operations to be disposed and disposed, end of period		(67,353	)		(29,972	)
CASH FROM CONTINUING OPERATIONS, end of period	$	5,165		$	3,797

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Note 1 – Organization and Operations

General Steel Holdings, Inc. (the “Company”) was incorporated on August 5, 2002 in the state of Nevada. The Company through its 100% owned subsidiary, General Steel Investment Co., Ltd., has been operating steel companies serving various industries in the People’s Republic of China (“PRC”). The Company’s main operation, since its disposal of its significant steel producing operating assets at December 31, 2016 and the disposal of its final steel producing operating assets on March 21, 2016, has been its trading business in iron ore, nickel-iron-manganese alloys, and other steel-related products. The Company, together with its subsidiaries, majority owned subsidiaries and variable interest entity, is referred to as the “Group”.

In view of the challenges for the steel manufacturing sector, the Company strategically accelerated its business transformation. The Company’s transformation strategy was to pursue opportunities that offer compelling benefits to the Company’s organization and shareholders, and includes: 

• First, strengthen the Company’s financials while providing the financial flexibility to pursue higher return, higher growth opportunities;

• Second, reduce the complexity of the Company’s business structure, which is consistent with the Company’s objectives for internal simplification and operating efficiency;

• Third, diversify operating risk in order to lower the Company’s high reliance on steel business, while at the same time leverage on the Company’s vast vertical resources in the steel industry; and

• Fourth, pursue opportunities for additional value creation.

On March 21, 2016, the Company sold its interest in Maoming Hengda Steel Co., Ltd thereby fully completing the divestiture of its steel manufacturing business as planned. As a result, Maoming Hengda’s financial information was presented as operation disposed and assets and liabilities held for sales for the three and six months ended June 30, 2017 in the unaudited condensed consolidated financial statements. Certain prior period data has been reclassified to conform to the current year presentation and to reflect the results of operations disposed. See Notes 2(a) and Notes 2(n) for details.

The Company’s remaining business is primarily comprised of Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”), a trading company in which the Company acquired 100% equity interest on February 16, 2016 for consideration of $0.03 million as Tianjin Shuangsi was established by the chief executive officer of the Company’s related entity and his relative. Tianjin Shuangsi primarily trades iron ore, nickel-iron-manganese alloys, and other steel-related products. On December 31, 2017, the Company sold Tianjin Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. Therefore the result of operations was presented as operations to be disposed on June 30, 2017 in the consolidated financial statements. See Note 2(n) – Operations held for sale and operations disposed/to be disposed.

Note 2 – Summary of significant accounting policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial statements include the accounts of all directly, indirectly owned subsidiaries and the variable interest entity listed below. All material intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the 2016 annual report on Form 10-K filed on December 4, 2018.

(a) Basis of presentation

The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries as of June 30, 2017: 

Subsidiary		Percentage of Ownership
General Steel Investment Co., Ltd.	British Virgin Islands		100.0	%
Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”)	PRC		100.0	%
Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)	PRC		100.0	%

6

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

(b) Principles of consolidation – subsidiaries

The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.  

All significant inter-company transactions and balances have been eliminated upon consolidation.

(c) Going concern

Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. The Company currently has an accumulated deficit, working capital deficit, and incurred negative cash flows from operating activities. These conditions raise substantial doubt as to its ability to continue as a going concern. These consolidated financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on its ability to obtain financial support and credit guarantee from the Company’s shareholders or other available resources from the PRC banks and other financial institutions given the Company’s credit history. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

7

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

(d) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates.

(e) Concentration of risks and other uncertainties

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

One of the Company’s customers, a related party individually accounted for 97.9% of total sales from operation disposed for the six months ended June 30, 2017, and none of the Company’s customers individually accounted for more than 10% of total sales from operation disposed for the three months ended June 30, 2017. Three of the Company’s customers, including two related parties accounted for 91.8% of the total sales for the six months ended June 30, 2016 respectively and three of the company’s customers accounted for 99.9% of total sales for the three months ended June 30, 2016, respectively.

One of the Company’s customer, a related party from operation disposed individually accounted for 99.0% of total accounts receivable, including related parties as of June 30, 2017. One of the Company’s customers, a related party, accounted for 100% of the total customer deposit as of December 31, 2016 from operations held for sale.

Three of the Company’s suppliers accounted for 99.1% of the total purchases for the six months ended June 30, 2017. None of the Company’s suppliers, all related parties accounted for more than 99.7% of the total purchases for the three months ended June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 89.0% of the total purchases for the six months June 30, 2016.

None of the Company’s suppliers individually accounted for more than 10% of total accounts payable as of June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 100% of total accounts payable as of December 31, 2016 from operations held for sale.

(f) Foreign currency translation and other comprehensive income

The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries and VIE in China use the local currency, Renminbi (“RMB”), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included in accumulated other comprehensive income amounted to $2.82 million and $1.37 million as of June 30, 2017 and December 31, 2016, respectively. The balance sheet amounts, with the exception of equity at June 30, 2017 and December 31, 2016 were translated at 6.78 RMB and 6.94 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the six months ended June 30, 2017 and 2016 were 6.88 RMB and 6.54 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet.

The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions.

8

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

(g) Financial instruments

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

· Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

· Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value.

(h) Cash

 Cash includes cash on hand and demand deposits in banks with original maturities of less than three months.

(i) Accounts receivable and allowance for doubtful accounts

Accounts receivable include trade accounts due from customers and other receivables from cash advances to employees, related parties or third parties. An allowance for doubtful accounts is established and recorded based on managements’ assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

(j) Inventories

Inventories are mainly finished goods and are stated at the lower of cost or market using the first-in, first-out method. Management reviews inventories for obsolescence and cost in excess of net realizable value at least annually and records a reserve against the inventory and additional cost of goods sold when the carrying value exceeds net realizable value.

 (k) Equipment, net

Equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows:

Office Equipment 5 Years

The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations.

(l) Investments in unconsolidated entities

Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method.

On December 28, 2015 General Steel (China) Co., Ltd sold its 32% equity interest in Tianwu General Steel Material Trading Co., Ltd. to Tongyong Shengyuan, one of the Company’s wholly owned subsidiaries, for $14.9 million (RMB 96.6 million). As of June 30, 2017, Tongyong Shengyuan’s net investment in the unconsolidated entity was $11.6 million

9

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Total investment loss in unconsolidated subsidiaries, which was included in “Loss from equity investment” in the consolidated statements of operations and comprehensive loss, amounted to $0.8 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively and amounted to $1.5 million and $0.3 million for six months ended June 30, 2017 and 2016, respectively.

The Company performed a significance test in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as a significant equity investee. The condensed financial statements of Tianwu is presented as follows:

CONDENSED STATEMENT OF OPERATIONS

(In thousands)
	June 30, 2017
NET SALES	$	932
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		85
FINANCE EXPENSES		3,494
OTHER INCOME		(68	)
TOTAL EXPENSES		3,511
LOSS BEFORE PROVISION FOR INCOME TAXES		(2,579	)
PROVISION FOR INCOME TAXES		1
NET LOSS FOR CONTINUING OPERATIONS		(2,580	)
NET LOSS FROM OPERATIONS HELD FOR SALE		(1,981	)
NET LOSS	$	(4,561	)

(m) Revenue recognition

Sales is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product.

Gross versus Net Revenue Reporting

In the normal course of the Company’s trading business, the Company orders directly the iron ore, nickel-iron-manganese alloys, and other steel-related products from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the steel-related products delivery, (ii) establishing the selling prices for delivery of the steel-related products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore report revenues and cost of revenues on a net basis.

10

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

For the three and six months ended June 30 2017, the Company reported gross sales of $0.2 million and $13.3 million, of which 38.5% and 98.2% were related party sales and the Company had $0.1 million and $19.7 million in purchases, of which 5.6% and 99.1% were related party purchases resulting in net profit of $0.1 million and net cost of sales of $6.4 million in operations held for sale. See details of related party sales and purchases in Note 6.

(n) Operations held for sale and operations disposed/to be disposed

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.

Reconciliation of the carrying amounts of major classes of assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets which include Tianjin Shuangsi’ operations as of June 30, 2017 and December 31, 2016.

Carrying amounts of major classes of assets included as part of discontinued operations:

	June 30,		December 31,
(In thousands)	2017		2016
ASSETS:
Cash	$	6	$	26
Accounts receivable, net		41		1
Accounts receivable related parties, net		2,872		-
Other receivables, net		15		-
Other receivables – related parties, net		19,807		30,554
Advance on inventory purchase		19		-
Prepaid taxes		1,043		-
Property and equipment, net		1		1
Total assets held for sale		23,084		30,582
Total assets of the disposal group classified as held for sale	$	23,804	$	30,582
Carrying amounts of major classes of liabilities included as part of discontinued operations:
CURRENT LIABILITIES:
Accounts payable, related parties	$	-	$	13,448
Other payables and accrued liabilities		2,950		2,448
Other payables - related parties		22,871		773
Customer deposits - related parties		-		12,242
Taxes payable		40		97
Total current liabilities held for sale		25,861		29,008
Total liabilities of the disposal group classified as held for sale	$	25,861	$	29,008

11

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the three and six months ended June 30, 2017 and Catalon and Maoming’s operation for the six months ended June 30, 2016.

	For the six months ended June 30,
Operations Disposed – Catalon and Maoming:	2017		2016
(In thousands)
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		-		(949	)
LOSS FROM OPERATIONS		-		(949	)
				-
OTHER EXPENSE
Finance/interest expense		-		(414	)
Other non-operating expense, net		-		(1,206	)
Other expense, net		-		(1,620	)
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		(2,569	)
PROVISION FOR INCOME TAXES		-		-
NET LOSS FROM OPERATIONS DISPOSED		-		(2,569	)
Less: Net loss attributable to noncontrolling interest from operations disposed		-		(26	)
NET LOSS FROM OPERATIONS DISPOSED	$	-	$	(2,543	)

	For the three months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017		2016
(In thousands)
NET PROFIT		86		365
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		6		18
INCOME FROM OPERATIONS		80		347
OTHER EXPENSE
Finance/interest expense		1		-
Other expense, net		1		-
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		347
PROVISION FOR INCOME TAXES		-		87
NET INCOME FROM OPERATIONS DISPOSED		79		260
Less: Net loss attributable to noncontrolling interest from operations disposed		-		-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	79	$	260

12

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

	For the six months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017			2016
(In thousands)
NET PROFIT (LOSS)		(6,413	)		819
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		12			41
(LOSS) INCOME FROM OPERATIONS		(6,425	)		778
OTHER EXPENSE
Finance/interest expense		1			1
Other expense, net		1			1
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		(6,426	)		777
PROVISION FOR INCOME TAXES		-			194
NET LOSS FROM OPERATIONS DISPOSED		(6,426	)		-
Less: Net loss attributable to noncontrolling interest from operations disposed		-			-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	(6,426	)	$	583

Maoming Hengda

On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has a 32% equity interest. The Company expects to receive its 99% ownership for the total proceeds of RMB 328.0 million (approximately $50.5 million), of which RMB 262.3 million (approximately $40.4 million) will be paid within five days after the signing of the Agreement, and the remainder RMB 65.7 million (approximately $10.1 million) will be paid within one year.  On August 10, 2016, the Company has signed two offset agreements with Tianwu Tongyuan and two of its debtors to offset its payables of RMB 262.3 million (approximately $40.4 million) to its debtors with Tianwu Tongyong. The agreement was amended in April 2017 to set the sale price at RMB 155.3 million or approximately $23.9 million. The Company received total proceeds of RMB 154.0 million (approximately $23.9 million), the full amount was collected in April 2017. 

Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital. The net deficiency of Maoming Hengda as of March 21, 2016 is as follows:

(In thousands)	March 21, 2016
	(Unaudited)
CURRENT ASSETS:
Cash	$	2
Accounts receivable, net		344
Other receivables, net		15
Total current		361
PROPERTY AND EQUIPMENT, NET		16,321
LONG-TERM DEFERRED EXPENSE		2
INTANGIBLE ASSETS, NET OF ACCUMULATED AMORTIZATION		2,023
Total assets	$	18,707
CURRENT LIABILITIES:
Accounts payable		6,377
Short term loans - other		464
Other payables and accrued liabilities		3,033
Other payables - related parties		430
Other payables - intercompany		30,650
Total current liabilities		40,954
NON-CONTROLLING INTEREST		(16	)
Total net deficiency		(22,232	)
Net consideration		(23,507	)
Currency translation adjustment		81
Total addition to paid-in capital	$	(45,658	)

13

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Catalon:

Due to operational issues, Catalon was not able to meet the minimum sales target or minimum net profit applicable as stipulated in the Stock Exchange agreement, therefore the board has voted unanimously to cancel the shares that were placed in escrow for the selling shareholders. As such the Company deconsolidated Catalon on March 31, 2016. The net deficiency of Catalon as of March 31, 2016 is as follows:

(In thousands)	March 31, 2016
CURRENT ASSETS:
Cash	$	24
Total current		24
CURRENT LIABILITIES:
Other payables - related parties		2,279
Total current liabilities		2,279
NON-CONTROLLING INTEREST		(358	)
Total net deficiency		(1,953	)
Net consideration		(4,316	)
Gain in disposal of subsidiary	$	(6,269	)

(o) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows.

(p) Non-controlling interest

Non-controlling interest mainly consists of an individual’s 1% interest in Maoming Hengda prior to March 21, 2016, and two individuals’ 15.5% interest in Catalon prior to March 31, 2016. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company.

(q) Earnings (loss) per share

The Company has adopted the accounting principles generally accepted in the United States regarding earnings per share (“EPS”), which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

14

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

(r) Treasury Stock

Treasury stock consists of shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method.

As of both June 30, 2017 and December 31, 2016, the Company had repurchased 494,462 total shares of its common stock, given retroactive effect to the 1-for-5 reverse stock split effective on October 29, 2015, under the share repurchase plan approved by the Board of Directors in December 2010.

(s) Income taxes

The Company accounts for income taxes in accordance with the accounting principles generally accepted in the United States for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The accounting principles generally accepted in the United States for accounting for uncertainty in income taxes clarify the accounting and disclosure for uncertain tax positions.  A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2017, the Company’s income tax returns filed for December 31, 2015, 2014, 2013, 2012 and 2011 remain subject to examination by the taxing authorities.

(t) Share-based compensation

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with the accounting standards regarding accounting for stock-based compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

15

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

(u) Recently issued accounting pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The update requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It eliminated the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. For public entities, the ASU is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The objective is to clarify the two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for these areas. The ASU affects the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of ASU 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The object is to address certain issues identified by the FASB-IASB Joint Transition Resource Group for Revenue Recognition. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements. 

16

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.  

In October 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-17, Consolidation (Topic 810): Interests held through related parties that are under common control. The amendments in this ASU require that the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the year ending December 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

17

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

Note 3– Other receivables (including related parties), net

Other receivables, including related party receivables, net of allowance for doubtful accounts consists of the following:

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Other receivables	$	140		$	170
Other receivables – related party		19,807			71,304
Less: allowance for doubtful accounts		(122	)		(169	)
Net other receivables		19,825			71,305
Less: other receivables – held for sale		(19,822	)		(30,554	)
Net other receivables – continuing operations	$	3		$	40,751

Movement of allowance for doubtful accounts, including related parties, is as follows:

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Beginning balance	$	169		$	-
Charge to expense		-			169
Write off		(47	)		-
Ending balance		122			169
Less: balance – held for sale		-			-
Ending balance – continuing operations	$	122		$	169

Note 4 - Supplemental disclosure of cash flow information

During the six months ended June 30, 2016, the Company increased additional paid-in capital of $45.6 million result from gain on sale of subsidiary to a related party. As of June 30, 2016, the unpaid receivable resulted from this transaction amounted to $23.1 million.

18

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

During the six months ended June 30, 2016, the Company incurred $0.2 million share-based compensation expense to prepay for future services.

During the six months ended June 30, 2016, the Company incurred $0.4 million share-based compensation expense to pay off its accrued liabilities.

The Company offset $10.6 million of other receivable – related parties with other payable – related parties for the six months ended June 30, 2016.

During the six months ended June, 2016, the Company incurred $0.04 million share-based compensation expense for consulting services.

During the six months ended June 30, 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016.

Note 5– Taxes

Income tax

Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended June 30, 2017 and 2016 are as follows:

(In thousands)	The three months ended June 30, 2017		The three months ended June 30, 2016
Current	$	-	$	87
Total provision for income taxes	$	-	$	87
Less: Income taxes from operations disposed		-		(87	)
Income taxes – continuing operations	$	-	$	-

(In thousands)	The six months ended June 30, 2017		The six months ended June 30, 2016
Current	$	-	$	194
Total provision for income taxes	$	-	$	194
Less: Income taxes from operations disposed		-		(194	)
Income taxes – continuing operations	$	-	$	-

Under the Income Tax Laws of the PRC, Tianjin Shuangsi and Maoming Hengda (located in Guangdong province) are subject to income tax at a rate of 25%.

Deferred taxes assets – China

According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for the next five years. The Company’s losses carried forward from operations disposed of $930.6 million has begun to expire in 2016. However, these balance were all disposed after the disposed operations in Longman Joint Venture on December 30, 2015 and after the disposed operations in Maoming Hengda on March 21, 2016. The Chinese government recently announced several policies to curb the real estate price increases across the country which led to a slowdown in demand for construction steel products. Additionally due to the continued global economic slowdown and the overcapacity issues in China's steel market, management expected there would be a sustained increase in margin pressure in the next five years until all the existing but outdated steel capacity across the whole industry are eliminated. Management took into consideration this potential negative impact on average selling price and gross margin of its products, re-performed an operating forecast for the next five years and concluded that the beginning-of-the-year balance of deferred tax assets mainly relating to the net operating loss carry forward may not be fully realizable due to the reduction in the projection of income to be available in the next 5 years. Management therefore decided to provide 100% valuation allowance for the deferred tax assets. The valuation allowance for operations held for sale as of June 30, 2017 and December 31, 2016 was $0 million and $0 million, respectively.

19

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Deferred taxes assets – U.S.

General Steel Holdings, Inc. was incorporated in the United States and has incurred net operating losses for income tax purposes for the nine months ended June 30, 2017. The net operating loss carry forwards for United States income taxes amounted to $7.0 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2027 through 2037. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset benefit to reduce the asset to zero. The valuation allowance as of June 30, 2017 was $0 million. The net change in the valuation allowance for the nine months ended June 30, 2017 was $0 million. Management will review this valuation allowance periodically and make adjustments as warranted.

The Company has no cumulative proportionate retained earnings from profitable subsidiaries as of June 30, 2017. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted in the future.

Note 6 – Related party transactions and balances

Related party transactions

a. The following chart summarized gross sales to related parties for the three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding*		15			-
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		24			26,642
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	115		$	34,362
Less: Sales to related parties from operations disposed			(115	)		(34,362	)
Sales–related parties – continuing operations		$	-		$	-

*The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

20

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

Sales to related parties in trading transactions from disposed operations, which were netted against the corresponding cost of goods sold, amounted to $6.4 million net cost of sales and $0.8 million net revenue for the six months ended June 30, 2017 and 2016, respectively.

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	(44	)	$	167
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		15			29,644
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		12,993			40,072
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	13,040		$	77,603
Less: Sales to related parties from operations disposed			(13,040	)		(77,603	)
Sales–related parties – continuing operations		$	-		$	-

b. The following charts summarize purchases from related parties three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhan Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	13		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		13			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,404
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		17			23,618
Total		$	43		$	52,348
Less: Purchases from related parties from operations disposed			(43	)		(52,348	)
Purchases–related parties–continuing operations		$	-		$	-

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	7,048		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		3,011			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,611
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		9,444			23,740
Total		$	19,503		$	52,677
Less: Purchases from related parties from operations disposed			(19,503	)		(52,677	)
Purchases–related parties–continuing operations		$	-		$	-

21

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

c. On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has 32% equity interest for RMB 331.3 million or approximately $51 million. The agreement was further amended in April 2017 to set the sale price at RMB 155.3 million or approximately $23.9 million. The Company expected to receive its 99% ownership for the total proceeds of RMB 154.0 million (approximately $23.8 million), of which the full amount would be paid within one year after the signing of the Agreement. Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital.

 Related party balances

a. Accounts receivable – related party:

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	2,872		$	-
Less: Accounts receivable – related party - held for sale			(2,872	)		-
Accounts receivable – related party - continuing operations		$	-		$	-

b. Other receivable – related parties:

Other receivables - related parties are those nontrade receivables arising from transactions through the sales of its subsidiary, which was bought by its related party or arising from transactions through accumulated intercompany payable upon the disposal of its subsidiary.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendler Investment & Management Group Co., Ltd	Common control under CEO	$	1,159		$	43
Tianwu General Steel Material Trading Co., Ltd.	Investee of General Steel (China)		-			22,137
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		14,027			30,396
Beijing Shenghua Xinyuan Metal Materials Co., Ltd	Partially owned by CEO through indirect shareholding		75			116
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		4,340			-
Maoming Hengda	Wholly owned by Tianwu Tongyong		206			18,612
Total			19,807			71,304
Less: other receivable – related parties - held for sale			(19,807	)		(30,554	)
Other receivable – related parties - continuing operations		$	-		$	40,750

22

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

c. Accounts payable – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	-	$	6,289
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		-		2,171
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-		4,988
Total			-		13,448
Less: accounts payable – related parties - held for sale			-		(13,448	)
Accounts payable – related parties - continuing operations		$	-	$	-

d. Other payables – related parties:

Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the Group.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendlar Investment & Management Group Co., Ltd	Common control under CEO	$	-		$	32
Yangpu Capital Automobile	Partially owned by CEO through indirect shareholding		95			95
Tianjin Jingqiu Steel Co., Ltd	Partially owned by CEO through indirect shareholding		59			-
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		22,812			-
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding		-			773
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		7,783			48,376
Zuosheng Yu	CEO		1,418			1,329
Total			32,167			50,605
Less: other payables – related parties - held for sale			(22,871	)		(773	)
Other payables – related parties – continuing operations		$	9,296		$	49,832

23

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

e. Customer deposit – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Hengying Trading Co, Ltd	Partially owned by CEO through indirect shareholding	$	-	$	12,424
Less: customer deposit – related party - held for sale			-		(12,424	)
Customer deposits – related party – continuing operations			-		-

Note 7 – Equity

On January 20, 2016, the Company granted 242,466 restricted shares of common stock for financial reporting consulting services. The shares were valued at $1.80 per share, based on the contract if the stock price is less than $1.80, the Company will pay the difference in one year.

On March 15, 2016, the Company granted 30,000 restricted shares of common stock for financial advisory and research coverage services. The shares were valued at $1.26 per share, based on the closing price at the date the Company signed the contract.

On September 30, 2016, the Company issued 127,120 restricted shares of common stock for financial reporting services. The shares were valued at $1.18 per share, based on a negotiated price between the Company and the consultant.

On August 19, 2016, the Company executed a debt cancellation agreement with Oriental Ace Limited, an unrelated third party, in conversion of short-term loan payable of $3.6 million into 3,272,727 shares of Common Stock at $0.35 per share resulting in a gain on debt extinguishment of $2,454,546. These shares have not been issued as the date of the filing.

On September 30, 2016, the Company completed a private placement through the issuance of 1,500,000 shares of the Company’s common stock at $1.00 per shares and raised capital of RMB 10.0 million (approximately $1.5 million). The Company received proceeds in October 2016.

In March 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016.

Note 8 – Acquisition

Tianjin Shuangsi Acquisition

On February 16, 2016, the Company received 100% equity interest for a consideration of $0.03 million as Tianjin Shuangsi was established by the chief executive office of the Company’s related entity and his relative. Tianjin Shuangsi primarily trades iron ore, nickel-iron-manganese alloys, and other steel-related products, which the Company would continue on its trading business after the disposition of General Steel (China) and Maoming Hengda.

Note 9 – Subsequent event

On August 19, 2016, the Company signed a debt cancellation agreement with GS China, a related party, in conversion of the other payables – related party of approximately $21.6 million into 100,000 shares of Common Stock at $1.10 per share and 19,565,758 shares of Series B Preferred Stock at $1.10 per share, which Series B Stock. This agreement was subsequently cancelled and the board approved the cancellation in September 2017.

On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Company does not believe the Act will have any material effect on the Company’s financials as the Company has sufficient NOL to offset any tax impact and has provided full valuation allowance to its deferred tax assets.

On December 31, 2017, the Company sold Tianjin Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. Therefore the result of operations was presented as operations to be disposed in December 31, 2016 in the consolidated financial statements for the year ended December 31, 2016. See Note 2(n) – Operations held for sale and operations disposed/to be disposed.

On August 24, 2018, the Company entered into a subscription agreement with Hummingbird Holdings Limited, a BVI entity. Pursuant to the Subscription Agreement, the Investor purchased 7,352,941 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $0.034 per share for aggregate gross proceeds of $250,000.

24

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The following discussion of the financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto. The following discussion contains forward-looking statements. General Steel Holdings, Inc. and its subsidiaries is referred to herein as “we,” “our,” “us” and “the Company.” The words or phrases “would be,” “will allow,” “expect to,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” or similar expressions are intended to identify forward-looking statements. Such statements include those concerning our expected financial performance, our corporate strategy and operational plans. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties, including: (a) those risks and uncertainties related to general economic conditions in the People’s Republic of China, including regulatory factors that may affect such economic conditions; (b) whether we are able to manage our planned growth efficiently and operate profitable operations, including whether our management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether we are able to generate sufficient revenues or obtain financing to sustain and grow our operations; and (d) whether we are able to successfully fulfill our primary requirements for cash which are explained below under “Liquidity and Capital Resources.” Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Additional information regarding certain factors which could cause actual results to differ from such forward-looking statements include, but are not limited to, those described in Item 1A, “Risk Factors”, to our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on August 30, 2016.

OVERVIEW

We were incorporated on August 5, 2002, in the State of Nevada. We are headquartered in Beijing, China and through our 100% owned subsidiary, General Steel Investment Co., Ltd, we have been operating steel companies serving various industries in the People’s Republic of China (“PRC”). Our main operation through December 31, 2016 had been the manufacturing and sales of steel products such as steel rebar, hot-rolled carbon and silicon sheets and spiral-weld pipes.

Our remaining steel business is primarily comprised of Tianjin Shuangsi Trading Co. Ltd, (“Tianjin Shuangsi”), a trading company that mainly sources overseas iron ore for steel mills. We acquired a 100% equity interest in Tianjin Shuangsi on February 16, 2016. On December 31, 2017, the Company sold Shuangsi for RMB 20,000,000 (approximately $2.88 million) so the result of operations was presented as operations to be disposed in the consolidated financial statements See Note 2(n) – Operations held for sale and operations disposed/to be disposed.

As a result of this restructuring, our former subsidiaries, Maoming Hengda Steel Company, Ltd. ("Maoming Hengda"), Catalon Chemical Corp. (“Catalon”), and Tianjin Shuangsi, all of which represented a majority of our consolidated sales and operations, are presented as discontinued operations or operations held for sale in our Consolidated Balance Sheets and Consolidated Statements of Operations.

RESULTS OF OPERATIONS

Since we completed the divestiture of our steel manufacturing business as planned through December 31, 2016 and further planned disposal of Tianjin Shuangsi, a trading company in which the Company received 100% equity interest on February 16, 2016. The Company’s remaining business mainly consisted of its 32% equity holding in Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("TianwuTongyong").

25

Statements of Operations for the three months ended June 30, 2017 and 2016:

(In thousands except share data)	2017			2016			Change			Percentage Change
Selling, General and Administrative Expenses		(19	)		(324	)	$	305			(94.1	)%
Loss from Operations		(19	)		(324	)	$	305			(94.1	)%
Other Expense, net		(756	)		(232	)	$	(524	)		225.9	%
Loss Before Provision for Income Taxes and Noncontrolling Interest		(775	)		(556	)	$	(220	)		39.6	%
Provision for Income Taxes		-			-		$	-			-	%
Loss from Continuing Operations		(775	)		(556	)	$	(220	)		39.6	%
Net Income from Operations to be Disposed, Net of Income Taxes		80			260		$	(180	)		(69.2	)%
Net Loss		(695	)		(296	)	$	(400	)		135.1	%
Less: Net Loss Attributable to Noncontrolling Interest from Operations Disposed		-			-			$			%
Net Loss Attributable to General Steel Holdings, Inc.	$	(695	)	$	(296	)	$	(400	)		135.1	%
Net Loss	$	(695	)	$	(296	)	$	(400	)		135.1	%
Foreign Currency Translation Adjustments		19			(207	)	$	226			(109.2	)%
Comprehensive Loss		(676	)		(503	)	$	(174	)		34.6	%
Less Comprehensive Loss Attributable to noncontrolling interest		-			-		$	-			-	%
Comprehensive Loss Attributable to General Steel Holdings, Inc.	$	(676	)	$	(503	)	$	(174	)		34.6	%
Weighted Average Number of Shares		20,200			15,100			(5,100	)		(33.8	)%
Income (Loss) Per Share – Basic and Diluted
Continuing Operations	$	(0.04	)	$	(0.04	)	$	-			-	%
Operations to be disposed		-			0.02			(0.02	)		100	%
Operations disposed		-			-		$	-			-	%
Net Loss per share	$	(0.03	)	$	(0.02	)	$	0.01			50.0	%

Statements of Operations for the six months ended June 30, 2017 and 2016:

(In thousands except share data)	2017			2016			Change			Percentage Change
Selling, General and Administrative Expenses		(114	)		(1,683	)		1,569			(93.2	)%
Loss from Operations		(114	)		(1,683	)		1,569			(93.2	)%
Other Expense, net		(1,460	)		5,922			(7,382	)		(124.7	)%
Income (Loss) Before Provision for Income Taxes and Noncontrolling Interest		(1,574	)		4,239			(5,813	)		(137.1	)%
Provision for Income Taxes		-			-			-			-	%
Income (Loss) from Continuing Operations		(1,574	)		4,239			(5,813	)		(137.1	)%
Net Income (Loss) from Operations to be Disposed, Net of Income Taxes		(6,425	)		583			(7,008	)		(1,202.1	)%
Net Loss from Operations Disposed, Net of Income Taxes		-			(2,569	)		2,569			(100.0	)%
Net Income (Loss)		(7,999	)		2,253			(10,252	)		(455.0	)%
Less: Net Loss Attributable to Noncontrolling Interest from Operations Disposed		-			(26	)		26			(100.0	)%
Net Income (Loss) Attributable to General Steel Holdings, Inc.	$	(7,999	)	$	2,279		$	(10,278	)		(451.0	)%
Net Income (Loss)	$	(7,999	)	$	2,253		$	(10,252	)		(455.0	)%
Foreign Currency Translation Adjustments		1,449			(284	)		1,733			(610.2	)%
Comprehensive Income ( Loss)		(6,550	)		1,969			(8,519	)		(432.7	)%
Less Comprehensive Loss Attributable to General Steel Holdings, Inc.		-			(34	)		34			(100	)%
Comprehensive Income (Loss) Attributable to General Steel Holding, Inc.	$	(6,550	)	$	2,003		$	(8,553	)		(427.0	)%
Weighted Average Number of Shares		20,101			16,334			3,767			23.1	%
Income (Loss) Per Share – Basic and Diluted
Continuing Operations	$	(0.08	)	$	0.26		$	(0.34	)		(130.2	)%
Operations to be disposed		(0.32	)		0.04			(0.36	)		(995.3	)%
Operations disposed		-			(0.16	)		0.16			(100.0	)%
Net Income (Loss) per share	$	(0.40	)	$	0.14		$	(0.54	)		(385.7	)%

26

General and Administrative Expenses (“G&A”)

Three months ended June 30, 2017 compared with three months ended June 30, 2016 

(in thousands)
	June 30, 2017			June 30, 2016			Change %
General and administrative expenses	$	(19	)	$	(324	)		(94.1	)%

G&A expenses decrease by 94.1% to $(0.02) million for the three months ended June 30, 2017, compared to $(0.3) million for the same period in 2016. The increase was mainly due to the disposed of major operations and decrease in professional expenses.

Six months ended June 30, 2017 compared with six months ended June 30, 2016 

(in thousands)
	June 30, 2017		June 30, 2016			Change %
General and administrative expenses	$	(114)	$	(1,683	)		(93.2)	%

G&A expenses decrease by 93.2 % to $(0.1) million for the six months ended June 30, 2017, compared to $(1.7) million for the same period in 2016. The increase was mainly due to the disposed of major operations and decrease in professional expenses.

Loss from Operations

Three months ended June 30, 2017 compared with three months ended June 30, 2016

(in thousands)
	2017		2016			Change %
Loss from operations	$	(19)	$	(324	)		(94.1)	%

Loss from operations for the three months ended June 30, 2017 was $(0.02) million as compared to a loss of $(0.3) million for the same period in 2016. The increase was mainly due to the disposed of major operations and decrease in professional expenses.

Six months ended June 30, 2017 compared with six months ended June 30, 2016

(in thousands)
	2017		2016			Change %
Loss from operations	$	(114)	$	(1,683	)		(93.2)	%

Loss from operations for the six months ended June 30, 2017 was $(0.1) million as compared to a loss of $(1.7) million for the same period in 2016. The increase was mainly due to the disposed of major operations and decrease in professional expenses.

27

Other Income (Expense)

Three months ended June 30, 2017 compared with three months ended June 30, 2016

(in thousands)
	2017			2016			Change %
Loss from equity investment	$	(757	)	$	(232	)		226.3	%
Finance/interest expense		1			-			100.0	%
Total other expense, net	$	(756	)	$	(232	)		225.9	%

Total other expense, net, for the three months ended June 30, 2017 was $(0.8) million, a 225.9% increase compared to $(0.2) million for the same period in 2016. The increase in other expense was mainly due to a $0.8 million loss from our 32% equity investment in Tianwu General Steel Material Trading Co., Ltd.

Six months ended June 30, 2017 compared with six months ended June 30, 2016 

(in thousands)
	2017			2016			Change %
Loss from equity investment	$	(1,459	)	$	(347	)		320.5	%
Finance/interest expense		(1	)		-			(100.0	)%
Gain from disposal of Catalon		-			6,269			(100.0	)%
Total other (expense) income, net	$	(1,460	)	$	5,922			(124.7	)%

Total other (expense) income, net, for the six months ended June 30, 2017 was $(1.5) million, compared to $5.9 million other income for the same period in 2016. The decreased in other income was mainly due to a $1.5 million loss from our 32% equity investment in Tianwu General Steel Material Trading Co., Ltd compared to a gain from disposal of Catalon in amount of 6.3 million the same period 2016.

Net Income (Loss) from Continuing Operations

Three months ended June 30, 2017 compared with three months ended June 30, 2016 

(in thousands)
	2017			2016			Change %
Net loss from continuing operations	$	(775	)	$	(556	)		39.6	%

 Net loss from continuing operations for the three months ended June 30, 2017 was $(0.8) million as compared to a loss of approximately $(0.6) million for the same period in 2016. The decrease in net income from operations was predominantly due to the reasons stated above.

Six months ended June 30, 2017 compared with six months ended June 30, 2016 

(in thousands)
	2017			2016		Change %
Net income (loss) from continuing operations	$	(1,574	)	$	4,239		(137.1	)%

 Net loss from continuing operations for the six months ended June 30, 2017 was $(1.6) million as compared to an income of approximately $4.2 million for the same period in 2016. The decrease in net income from operations was predominantly due to the reasons stated above.

Net income from Operations to be Disposed

Three months ended June 30, 2017 compared with three months ended June 30, 2016 

(in thousands)
	2017		2016		Change %
Net income from operations to be disposed, net of applicable income taxes	$	80	$	260		(69.2	)%

Net income from operations to be disposed for the three months ended June 30, 2017 was approximately $0.1 million compared to approximately $0.3 million for the same period in 2016. Net income from operations to be disposed was mainly from Tianjin Shuangsi as it had operating losses in its trading business.

28

Six months ended June 30, 2017 compared with six months ended June 30, 2016

(in thousands)
	2017			2016		Change %
Net (loss) income from operations disposed, net of applicable income taxes	$	(6,425	)	$	583		(1,202.1	)%

Net loss from operations disposed for the six months ended June 30, 2017 was approximately $(6.4) million as compared to a gain of approximately $0.6 million for the same period in 2016. Net loss from operations to be disposed was mainly from Tianjin Shuangsi as it had operating losses in its trading business.

Net Loss from Operations Disposed

Three months ended June 30, 2017 compared with three months ended June 30, 2016

(in thousands)
	2017		2016		Change %
Net loss from operations disposed, net of applicable income taxes	$	-	$	-		-	%

There was no operations to be disposed for the three months ended June 30, 2017 and 2016.

Six months ended June 30, 2017 compared with six months ended June 30, 2016 

(in thousands)
	2017		2016			Change %
Net loss from operations disposed, net of applicable income taxes	$	-	$	(2,569	)		(100.0	)%

Net loss from operations disposed for the three months ended June 30, 2016 was approximately $(2.6) million as a result of disposing its operations of Maoming Hengda.

Net Loss attributable to General Steel Holdings, Inc.

Three months ended June 30, 2017 compared with three months ended June 30, 2016 

(in thousands)
	2017			2016			Change %
Net loss	$	(695	)	$	(296	)		135.1	%
Less: Net loss attributable to the noncontrolling interest from operations disposed		-			-			-	%
Net loss attributable to General Steel Holdings, Inc.	$	(695	)	$	(296	)		135.1	%

Net loss attributable to us for the three months ended June 30, 2017 was $(0.7) million as compared to $(0.3) million net loss for the same period in 2016. The decrease in net income attributable to us for the six months ended June 30, 2016 was mainly a result of the loss from our operations to be disposed and loss from our equity investment for the three months ended June 30, 2017.

Six months ended June 30, 2017 compared with six months ended June 30, 2016

(in thousands)
	2017			2016			Change %
Net income (loss)	$	(7,999	)	$	2,253			(455.0	)%
Less: Net loss attributable to the noncontrolling interest from operations disposed		-			(26	)		(100	)%
Net income (loss) attributable to General Steel Holdings, Inc.	$	(7,999	)	$	2,279			(451.0	)%

29

Net loss attributable to us for the six months ended June 30, 2017 was $(8.0) million as compared net income of $2.3 million for the same period in 2016. The decrease in net income attributable to us for the three months ended June 30, 2016 was mainly a result of the loss from our operations to be disposed and loss from our equity investment for the six months ended June 30, 2017.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2017, our current liabilities exceeded the current assets by approximately $13.4 million. Given our expected expenditures in the foreseeable future together with our cash flow from trading operations, we have comprehensively considered our available sources of funds as follows:

· Financial support and credit guarantee from related parties; and

· Additional equity or debt financing

Based on the above considerations, our Board of Directors is of the opinion that we are able to obtain sufficient funds to meet our working capital requirements and debt obligations as they become due over the twelve months from the balance sheet date.  In addition, we have completed the divestiture of our steel manufacturing business as planned on terms favorable to the Company by reducing our net deficiency and although recently acquired businesses are not yet profitable or proven, they are not expected to result in net working capital deficiency as compared to our steel manufacturing business. 

Substantially all our operations are conducted in China and all of our revenues are denominated in Renminbi (RMB). RMB is subject to the exchange control regulation in China, and, as a result, we may have difficulty distributing any dividends outside of China due to PRC exchange control regulations that restrict its ability to convert RMB into U.S. Dollars.

Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10.0% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50.0% of its registered capital. These reserves are not distributable as cash dividends. The board of directors of a foreign-invested enterprise has the discretion to allocate a portion of its after-tax profits to staff welfare and bonus funds, which may not be distributed to equity owners except in the event of liquidation. Under PRC law, RMB is currently convertible into U.S. Dollars under a company’s “current account,” which includes dividends, trade and service-related foreign exchange transactions, without prior approval of the State Administration of Foreign Exchange (SAFE), but is not from a company’s “capital account,” which includes foreign direct investments and loans, without the prior approval of the SAFE.

Going concern

These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to repay its debt obligations, to obtain necessary financing resources to continue operations, along with the market and general economic condition. Management anticipates that the Company will be dependent, for the near future, on debt financing in the form of short-term loans, loans from related parties, to finance the working capital requirements of the Company. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

The Company had working capital deficit of $13.4 million for the six-month ended June 30, 2017 and working capital deficit $8.2 million for the year ended December 31, 2016. In addition, the Company had an accumulated deficit of $1.26 billion at June 30, 2017 and incurred negative cash flows from operating activities totaling $(36.0) million as of June 30, 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to obtain financial support and credit guarantee from the Company’s shareholders or other available resources from the PRC banks and other financial institutions given the Company’s credit history. The Company’s consolidated financial statements do not include any adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

30

Cash-flow

Operating Activities

Net cash used in operating activities was approximately $36.0 million for the six months ended June 30, 2017 compared to net cash provided by operating activities of $29.3 million for the six months ended June 30, 2016. This change was mainly due to the combination of the following factors:

The net loss from continuing operations of $1.6 million, mainly from non-cash loss from equity investment for the six months ended June 30, 2017 compared to net income of $4.3 million in the same period in 2016 which were mainly due to gain from disposal of Catalon.

Net cash used in operating activities from operations to be disposed/operations disposed: The cash outflow was mainly because we incurred significant losses from our Tianjin Shuangsi for the first quarter of 2017 due to loss from the trading business while cash inflow for the six months ended June 30, 2016 was mainly due to Hengda Steel which was disposed in March, 2016.

Investing activities

We did not use any cash for investing activities for the three months ended June 30, 2017 while during the six months ended June 30, 2016, we purchased immaterial amount of equipment. Net cash used in investing activities was approximately $29.9 million for the six months ended June 30, 2016 which are mainly other receivables from related parties in the amount of approximately 29.9 million.

Financing activities

Net cash provided by financing activities was $36.0 million for the six months ended June 30, 2017 compared to $0.6 million used in financing activities for the six months ended June 30, 2016. The increase of cash inflow from financing activities was mainly driven by our entity to be disposed, Tianjin Shuangsi, as mainly due to borrowing from parties loans while during the six months ended June 30, 2016, we had borrowings from our related parties to pay for certain operating expenses on behalf of the Company.

Restrictions on our ability to distribute dividends

Substantially all of our assets are located within the PRC. Under the laws of the PRC governing foreign invested enterprises, dividend distribution and other funds transfers are allowed but subject to special procedures under relevant rules and regulations. Foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10.0% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50.0% of its registered capital. These reserves are not distributable as cash dividends. The board of directors of a foreign-invested enterprise has the discretion to allocate a portion of its after-tax profits to staff welfare and bonus funds, which may not be distributed to equity owners except in the event of liquidation. Under PRC regulations, RMB is currently convertible into U.S. Dollars under a company’s “current account” which includes dividends, trade and service-related foreign exchange transactions, without prior approval of the State Administration of Foreign Exchange (SAFE). Transfers from a company’s “capital account,” which includes foreign direct investments and loans, can’t be executed without the prior approval of the SAFE.

31

There are no restrictions to distribute or transfer other funds from General Steel Investment to us.

We have never declared or paid any cash dividends to our shareholders. We do not plan to pay any dividends out of our retained earnings for the six months ended June 30, 2016. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Any declaration and payment, as well as the amount, of dividends will be subject to our By-Laws, charter and applicable Chinese and U.S. state and federal laws and regulations, including the approval from the shareholders of each subsidiary which intends to declare such dividends, if applicable.

We have previously raised money in the U.S. capital markets which has provided the capital needed for our operations and investments activities. Thus, the foreign currency restrictions and regulations in the PRC on the dividends distribution will not have a material impact on our liquidity, financial condition, and results of operation.

Impact of Inflation

We are subject to commodity price risks arising from price fluctuations in the market prices of the steel-related products. We have generally been able to pass on cost increases through price adjustments. However, the ability to pass on these increases depends on market conditions influenced by the overall economic conditions in China. We do not believe that inflation risk is material to our business or our financial position, results of operations or cash flows.

 OFF-BALANCE SHEET ARRANGEMENTS

There were no off-balance sheet arrangements for the six months ended June 30, 2016 that have or that in the opinion of management are likely to have, a current or future material effect on our financial condition or results of operations.

Critical Accounting Policies

Management’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Our consolidated financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our Consolidated Financial Statements “Summary of Significant Accounting Policies”. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

We believe that the following reflect the more critical accounting policies that currently affect our financial condition and results of operations.

Principles of consolidation – subsidiaries

The accompanying consolidated financial statements include the financial statements of our Company and our subsidiaries.

The consolidated financial statements have been prepared on a historical cost basis to reflect the financial position and results of operations of the Company in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Subsidiaries are those entities in which our Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

All significant inter-company transactions and balances have been eliminated upon consolidation.

Investments in unconsolidated entities

Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method.

32

Operations held for sale

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates. 

Recently issued accounting pronouncements

We prepare our consolidated financial statements in accordance with US GAAP. These accounting principles require us to make judgments, estimates and assumptions on the reported amounts of assets and liabilities at the end of each fiscal period, and the reported amounts of revenues and expenses during each fiscal period. We continually evaluate these judgments and estimates based on our own historical experience, knowledge and assessment of current business and other conditions, our expectations regarding the future based on available information and assumptions that we believe to be reasonable.

There have been no other material changes during the three and six months ended June 30 2017 in our significant accounting policies from those previously disclosed in the Company’s annual report for the fiscal year ended December 31, 2016. The discussion of our critical accounting policies contained in Note 2 to our unaudited condensed consolidated financial statements in this Report, “Summary of our Significant Accounting Policies”, is incorporated herein by reference.

ITEM 4. CONTROLS AND PROCEDURES

Our Company, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the design and operation of our disclosure controls and procedures, as defined under Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2017. Our Company’s disclosure controls and procedures are designed: (i) to ensure that information required to be disclosed by us in the reports that we file or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and (ii) to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Based on their evaluations, our Chief Executive Officer and Chief Financial Officer have concluded that our Company’s disclosure controls and procedures were not effective as of June 30, 2017 due to the material weaknesses in our internal control over financial reporting previously identified in our December 31, 2016 Form 10K filing and described below:

· Ineffective review process in our accounting department relating unusual and complex transactions.

· Lack of a qualified full-time accountant who possess U.S. GAAP knowledge to oversee the recording of our daily transaction.

Based on the above material weakness, our Chief Executive Officer and Chief Financial Officer concluded that our Company’s disclosure controls and procedures were not effective as of June 30, 2017.

33

Remediation

Our management has dedicated significant resources to correcting the control deficiencies and to ensuring that we take proper steps to improve our internal control over financial reporting after the completion of divesture of our steel business and current business model from our trading business.

We have taken a number of remediation actions that we believe will improve the effectiveness of our internal control over financial reporting including the following:

· Implement an internal review process over financial reporting to review all recent accounting pronouncements and to verify that the accounting treatment identified in such report have been fully implemented and confirmed by our internal control department. In the future, we will continue to improve our ongoing review and supervision of our internal control over financial reporting;

· Revise our internal control over financial reporting procedure on potential acquisition and unusual transactions.

Management believes the foregoing efforts will effectively remediate the material weaknesses described above.

Despite the existence of the material weaknesses discussed above, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that the consolidated financials included in this Quarterly Report on Form 10-Q present, in all material aspects, our financial position, results of operations, comprehensive loss and cash flows for the periods presented, in conformity with U.S. GAAP.

Changes in Internal Controls over Financial Reporting

Except as otherwise noted above, there has not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to certain legal proceedings, claims and disputes that arise in the ordinary course of our business. Although we cannot predict the outcomes of these legal proceedings, we do not believe these actions, in the aggregate, will have a material adverse impact on our financial position, results of operations or liquidity. We are currently not a party to any material legal proceedings.

ITEM 1A. RISK FACTORS

To our knowledge and to the extent additional factual information disclosed in this Quarterly Report on Form 10-Q relates to such risk factors, there have been no other changes in the risk factors described in “ITEM 1A. RISK FACTORS” in our Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the SEC on December 4, 2018.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 6. EXHIBITS

31.1*	Certification of the CEO (Principal Executive Officer) pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as filed herewith.
31.2*	Certification of the CFO (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as filed herewith.
32.1*	Certification of the CEO (Principal Executive Officer) pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as filed herewith.
32.2*	Certification of the CFO (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as filed herewith.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*Filed herewith.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	General Steel Holdings, Inc.
Date: December 6, 2018	By: /s/ Zuosheng Yu
	Zuosheng Yu
	Chief Executive Officer
Date: December 6, 2018	By: /s/ John Chen
	John Chen
	Director and Chief Financial Officer

35

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Zuosheng Yu, certify that:

1. I have reviewed this quarterly report on Form 10-Q of General Steel Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: December 6, 2018	By:	/s/ Zuosheng Yu
		Zuosheng Yu
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John Chen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of General Steel Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 6, 2018	By:	/s/ John Chen
		John Chen
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of General Steel Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Zuosheng Yu, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: December 6, 2018	By:	/s/ Zuosheng Yu
		Zuosheng Yu
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of General Steel Holdings, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Chen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: December 6, 2018	By:	/s/ John Chen
		John Chen
		Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Nov. 15, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Entity Registrant Name	GENERAL STEEL HOLDINGS INC
Entity Central Index Key	0001239188
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	GSIH
Entity Common Stock, Shares Outstanding		24,774,881
Entity Emerging Growth Company	false
Entity Small Business	true

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash	$ 5,165	$ 3,797
Other receivables, net	3,100	598
Other receivables - related parties	0	40,749,746
Current assets held for sale	23,803,717	30,581,807
TOTAL CURRENT ASSETS	23,811,982	71,335,948
EQUIPMENT, NET	217	214
INVESTMENT IN UNCONSOLIDATED ENTITIES	11,588,084	12,758,610
TOTAL ASSETS	35,400,283	84,094,772
CURRENT LIABILITIES:
Other payables and accrued liabilities	2,028,529	732,054
Other payables - related parties	9,296,039	49,830,622
Current liabilities held for sale	25,860,585	29,006,872
TOTAL CURRENT LIABILITIES	37,185,153	79,569,548
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIENCY):
Common stock, $0.001 par value, 200,000,000 shares authorized, 20,694,670 and 20,494,670 shares issued, 20,200,208 and 20,000,208 shares outstanding as of June 30, 2017 and December 31, 2016, respectively	20,695	20,495
Treasury stock, at cost, 494,462 shares as of June 30, 2017 and December 31, 2016	(839,686)	(839,686)
Additional paid-in-capital	1,253,624,014	1,253,384,214
Statutory reserves	1,107,010	1,107,010
Accumulated deficit	(1,258,520,847)	(1,250,521,814)
Accumulated other comprehensive income	2,820,851	1,371,912
TOTAL GENERAL STEEL HOLDINGS, INC. EQUITY (DEFICIENCY)	(1,784,870)	4,525,224
TOTAL LIABILITIES AND EQUITY (DEFICIENCY)	35,400,283	84,094,772
Series A Preferred Stock [Member]
EQUITY (DEFICIENCY):
Preferred stock	3,093	3,093
Series B Preferred Stock [Member]
EQUITY (DEFICIENCY):
Preferred stock	$ 0	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Common Stock, par or stated value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares, issued	20,694,670	20,494,670
Common stock, shares, outstanding	20,200,208	20,000,208
Treasury stock, shares	494,462	494,462
Series A Preferred Stock [Member]
Preferred Stock, par or stated value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	3,092,899	3,092,899
Preferred stock, shares outstanding	3,092,899	3,092,899
Series B Preferred Stock [Member]
Preferred Stock, par or stated value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
GENERAL AND ADMINISTRATIVE EXPENSES	$ 19,314	$ 324,400	$ 113,557	$ 1,682,597
LOSS FROM OPERATIONS	(19,314)	(324,400)	(113,557)	(1,682,597)
OTHER INCOME (EXPENSE)
Loss from equity investment	(757,438)	(231,682)	(1,459,195)	(347,303)
Finance/interest expense	1,143	(15)	(867)	(64)
Gain from disposal of Catalon	0	0	0	6,268,930
Other income (expense), net	(756,295)	(231,697)	(1,460,062)	5,921,563
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST	(775,609)	(556,097)	(1,573,619)	4,238,966
PROVISION FOR INCOME TAXES	0	0	0	0
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(775,609)	(556,097)	(1,573,619)	4,238,966
DISCONTINUED OPERATIONS - Note 2(n):
NET INCOME (LOSS) FROM OPERATIONS TO BE DISPOSED, net of applicable income taxes	79,720	260,236	(6,425,414)	583,226
NET LOSS FROM OPERATIONS DISPOSED, net of applicable income taxes	0	0	0	(2,568,935)
NET INCOME (LOSS)	(695,889)	(295,861)	(7,999,033)	2,253,257
Less: Net loss attributable to noncontrolling interest from operations disposed	0	0	0	(25,706)
NET INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.	(695,889)	(295,861)	(7,999,033)	2,278,963
NET INCOME (LOSS)	(695,889)	(295,861)	(7,999,033)	2,253,257
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments	19,288	(207,228)	1,448,939	(284,159)
COMPREHENSIVE INCOME (LOSS)	(676,601)	(503,089)	(6,550,094)	1,969,098
Less: Comprehensive loss attributable to noncontrolling interest	0	(355)	0	(34,044)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.	$ (676,601)	$ (502,734)	$ (6,550,094)	$ 2,003,142
WEIGHTED AVERAGE NUMBER OF SHARES	20,200,208	15,100,361	20,101,319	16,334,486
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Continuing operations	$ (0.04)	$ (0.04)	$ (0.08)	$ 0.26
Operations to be disposed	0.00	0.02	(0.32)	0.04
Operations disposed	0	0	0	(0.16)
Net income (loss) per share	$ (0.03)	$ (0.02)	$ (0.40)	$ 0.14

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (695,889)	$ (295,861)	$ (7,999,033)	$ 2,253,257
Net income (loss) from operations to be disposed	79,720	260,236	(6,425,414)	583,226
Net loss from operations disposed			0	(2,568,935)
Net income (loss) from continuing operations	(775,609)	(556,097)	(1,573,619)	4,238,966
Adjustments to reconcile net loss to cash provided by (used in) operating activities from continuing operations:
Bad debt expenses			0	167,055
Share-based compensation			0	696,838
Loss from equity investment	757,438	231,682	1,459,195	347,303
Gain from disposal of Catalon	0	0	0	(6,268,930)
Changes in operating assets and liabilities
Other receivables			(4,002)	(6,300)
Other payables and accrued liabilities			1,474	269,855
Taxes payable			0	1,390
Net cash used in operating activities from operations to be disposed/ operations disposed			(35,931,727)	29,854,873
Net cash (used in) provided by operating activities			(36,048,679)	29,301,050
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment				(1,000)
Net cash provided by investing activities from operations to be disposed / operations disposed			61,598	(29,864,338)
Net cash used in investing activities			61,598	(29,865,338)
CASH FLOWS FINANCING ACTIVITIES:
Borrowings from related parties			0	570,674
Net cash provided by financing activities from operations to be disposed / operations disposed			36,030,062	0
Net cash provided by financing activities			36,030,062	570,674
EFFECTS OF EXCHANGE RATE CHANGE IN CASH			25,740	(15,008)
INCREASE (DECREASE) IN CASH			68,721	(8,622)
CASH, beginning of period			3,797	42,391	$ 42,391
CASH, end of period	72,518	33,769	72,518	33,769	3,797
Less: cash from operations to be disposed and disposed, end of period	(67,353)	(29,972)	(67,353)	(29,972)
CASH FROM CONTINUING OPERATIONS, end of period	$ 5,165	$ 3,797	$ 5,165	$ 3,797	$ 3,797

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Organization and Operations

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 – Organization and Operations

General Steel Holdings, Inc. (the “Company”) was incorporated on August 5, 2002 in the state of Nevada. The Company through its 100% owned subsidiary, General Steel Investment Co., Ltd., has been operating steel companies serving various industries in the People’s Republic of China (“PRC”). The Company’s main operation, since its disposal of its significant steel producing operating assets at December 31, 2016 and the disposal of its final steel producing operating assets on March 21, 2016, has been its trading business in iron ore, nickel-iron-manganese alloys, and other steel-related products. The Company, together with its subsidiaries, majority owned subsidiaries and variable interest entity, is referred to as the “Group”.

In view of the challenges for the steel manufacturing sector, the Company strategically accelerated its business transformation. The Company’s transformation strategy was to pursue opportunities that offer compelling benefits to the Company’s organization and shareholders, and includes:

• First, strengthen the Company’s financials while providing the financial flexibility to pursue higher return, higher growth opportunities;

• Second, reduce the complexity of the Company’s business structure, which is consistent with the Company’s objectives for internal simplification and operating efficiency;

• Third, diversify operating risk in order to lower the Company’s high reliance on steel business, while at the same time leverage on the Company’s vast vertical resources in the steel industry; and

• Fourth, pursue opportunities for additional value creation.

On March 21, 2016, the Company sold its interest in Maoming Hengda Steel Co., Ltd thereby fully completing the divestiture of its steel manufacturing business as planned. As a result, Maoming Hengda’s financial information was presented as operation disposed and assets and liabilities held for sales for the three and six months ended June 30, 2017 in the unaudited condensed consolidated financial statements. Certain prior period data has been reclassified to conform to the current year presentation and to reflect the results of operations disposed. See Notes 2(a) and Notes 2(n) for details.

The Company’s remaining business is primarily comprised of Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”), a trading company in which the Company acquired 100% equity interest on February 16, 2016 for consideration of $0.03 million as Tianjin Shuangsi was established by the chief executive officer of the Company’s related entity and his relative. Tianjin Shuangsi primarily trades iron ore, nickel-iron-manganese alloys, and other steel-related products. On December 31, 2017, the Company sold Tianjin Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. Therefore the result of operations was presented as operations to be disposed on June 30, 2017 in the consolidated financial statements. See Note 2(n) – Operations held for sale and operations disposed/to be disposed.

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Summary of significant accounting policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 2 – Summary of significant accounting policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial statements include the accounts of all directly, indirectly owned subsidiaries and the variable interest entity listed below. All material intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the 2016 annual report on Form 10-K filed on December 4, 2018.

(a) Basis of presentation

The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries as of June 30, 2017: 

Subsidiary		Percentage of Ownership
General Steel Investment Co., Ltd.	British Virgin Islands		100.0	%
Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”)	PRC		100.0	%
Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)	PRC		100.0	%

(b) Principles of consolidation – subsidiaries

The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.  

All significant inter-company transactions and balances have been eliminated upon consolidation.

(c) Going concern

Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. The Company currently has an accumulated deficit, working capital deficit, and incurred negative cash flows from operating activities. These conditions raise substantial doubt as to its ability to continue as a going concern. These consolidated financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on its ability to obtain financial support and credit guarantee from the Company’s shareholders or other available resources from the PRC banks and other financial institutions given the Company’s credit history. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

(d) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates.

(e) Concentration of risks and other uncertainties

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

One of the Company’s customers, a related party individually accounted for 97.9% of total sales from operation disposed for the six months ended June 30, 2017, and none of the Company’s customers individually accounted for more than 10% of total sales from operation disposed for the three months ended June 30, 2017. Three of the Company’s customers, including two related parties accounted for 91.8% of the total sales for the six months ended June 30, 2016 respectively and three of the company’s customers accounted for 99.9% of total sales for the three months ended June 30, 2016, respectively.

One of the Company’s customer, a related party from operation disposed individually accounted for 99.0% of total accounts receivable, including related parties as of June 30, 2017. One of the Company’s customers, a related party, accounted for 100% of the total customer deposit as of December 31, 2016 from operations held for sale.

Three of the Company’s suppliers accounted for 99.1% of the total purchases for the six months ended June 30, 2017. None of the Company’s suppliers, all related parties accounted for more than 99.7% of the total purchases for the three months ended June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 89.0% of the total purchases for the six months June 30, 2016.

None of the Company’s suppliers individually accounted for more than 10% of total accounts payable as of June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 100% of total accounts payable as of December 31, 2016 from operations held for sale.

(f) Foreign currency translation and other comprehensive income

The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries and VIE in China use the local currency, Renminbi (“RMB”), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included in accumulated other comprehensive income amounted to $2.82 million and $1.37 million as of June 30, 2017 and December 31, 2016, respectively. The balance sheet amounts, with the exception of equity at June 30, 2017 and December 31, 2016 were translated at 6.78 RMB and 6.94 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the six months ended June 30, 2017 and 2016 were 6.88 RMB and 6.54 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet.

The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions.

(g) Financial instruments

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

 Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value.

(h) Cash

 Cash includes cash on hand and demand deposits in banks with original maturities of less than three months.

(i) Accounts receivable and allowance for doubtful accounts

Accounts receivable include trade accounts due from customers and other receivables from cash advances to employees, related parties or third parties. An allowance for doubtful accounts is established and recorded based on managements’ assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

(j) Inventories

Inventories are mainly finished goods and are stated at the lower of cost or market using the first-in, first-out method. Management reviews inventories for obsolescence and cost in excess of net realizable value at least annually and records a reserve against the inventory and additional cost of goods sold when the carrying value exceeds net realizable value.

 (k) Equipment, net

Equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows:

Office Equipment 5 Years

The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations.

(l) Investments in unconsolidated entities

Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method.

On December 28, 2015 General Steel (China) Co., Ltd sold its 32% equity interest in Tianwu General Steel Material Trading Co., Ltd. to Tongyong Shengyuan, one of the Company’s wholly owned subsidiaries, for $14.9 million (RMB 96.6 million). As of June 30, 2017, Tongyong Shengyuan’s net investment in the unconsolidated entity was $11.6 million

Total investment loss in unconsolidated subsidiaries, which was included in “Loss from equity investment” in the consolidated statements of operations and comprehensive loss, amounted to $0.8 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively and amounted to $1.5 million and $0.3 million for six months ended June 30, 2017 and 2016, respectively.

The Company performed a significance test in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as a significant equity investee. The condensed financial statements of Tianwu is presented as follows:

CONDENSED STATEMENT OF OPERATIONS

(In thousands)
	June 30, 2017
NET SALES	$	932
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		85
FINANCE EXPENSES		3,494
OTHER INCOME		(68	)
TOTAL EXPENSES		3,511
LOSS BEFORE PROVISION FOR INCOME TAXES		(2,579	)
PROVISION FOR INCOME TAXES		1
NET LOSS FOR CONTINUING OPERATIONS		(2,580	)
NET LOSS FROM OPERATIONS HELD FOR SALE		(1,981	)
NET LOSS	$	(4,561	)

(m) Revenue recognition

Sales is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product.

Gross versus Net Revenue Reporting

In the normal course of the Company’s trading business, the Company orders directly the iron ore, nickel-iron-manganese alloys, and other steel-related products from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the steel-related products delivery, (ii) establishing the selling prices for delivery of the steel-related products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore report revenues and cost of revenues on a net basis.

For the three and six months ended June 30 2017, the Company reported gross sales of $0.2 million and $13.3 million, of which 38.5% and 98.2% were related party sales and the Company had $0.1 million and $19.7 million in purchases, of which 5.6% and 99.1% were related party purchases resulting in net profit of $0.1 million and net cost of sales of $6.4 million in operations held for sale. See details of related party sales and purchases in Note 6.

(n) Operations held for sale and operations disposed/to be disposed

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.

Reconciliation of the carrying amounts of major classes of assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets which include Tianjin Shuangsi’ operations as of June 30, 2017 and December 31, 2016.

Carrying amounts of major classes of assets included as part of discontinued operations:

	June 30,		December 31,
(In thousands)	2017		2016
ASSETS:
Cash	$	6	$	26
Accounts receivable, net		41		1
Accounts receivable related parties, net		2,872		-
Other receivables, net		15		-
Other receivables – related parties, net		19,807		30,554
Advance on inventory purchase		19		-
Prepaid taxes		1,043		-
Property and equipment, net		1		1
Total assets held for sale		23,084		30,582
Total assets of the disposal group classified as held for sale	$	23,804	$	30,582
Carrying amounts of major classes of liabilities included as part of discontinued operations:
CURRENT LIABILITIES:
Accounts payable, related parties	$	-	$	13,448
Other payables and accrued liabilities		2,950		2,448
Other payables - related parties		22,871		773
Customer deposits - related parties		-		12,242
Taxes payable		40		97
Total current liabilities held for sale		25,861		29,008
Total liabilities of the disposal group classified as held for sale	$	25,861	$	29,008

Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the three and six months ended June 30, 2017 and Catalon and Maoming’s operation for the six months ended June 30, 2016.

	For the six months ended June 30,
Operations Disposed – Catalon and Maoming:	2017		2016
(In thousands)
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		-		(949	)
LOSS FROM OPERATIONS		-		(949	)
				-
OTHER EXPENSE
Finance/interest expense		-		(414	)
Other non-operating expense, net		-		(1,206	)
Other expense, net		-		(1,620	)
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		(2,569	)
PROVISION FOR INCOME TAXES		-		-
NET LOSS FROM OPERATIONS DISPOSED		-		(2,569	)
Less: Net loss attributable to noncontrolling interest from operations disposed		-		(26	)
NET LOSS FROM OPERATIONS DISPOSED	$	-	$	(2,543	)

	For the three months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017		2016
(In thousands)
NET PROFIT		86		365
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		6		18
INCOME FROM OPERATIONS		80		347
OTHER EXPENSE
Finance/interest expense		1		-
Other expense, net		1		-
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		347
PROVISION FOR INCOME TAXES		-		87
NET INCOME FROM OPERATIONS DISPOSED		79		260
Less: Net loss attributable to noncontrolling interest from operations disposed		-		-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	79	$	260

	For the six months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017			2016
(In thousands)
NET PROFIT (LOSS)		(6,413	)		819
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		12			41
(LOSS) INCOME FROM OPERATIONS		(6,425	)		778
OTHER EXPENSE
Finance/interest expense		1			1
Other expense, net		1			1
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		(6,426	)		777
PROVISION FOR INCOME TAXES		-			194
NET LOSS FROM OPERATIONS DISPOSED		(6,426	)		-
Less: Net loss attributable to noncontrolling interest from operations disposed		-			-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	(6,426	)	$	583

Maoming Hengda

On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has a 32% equity interest. The Company expects to receive its 99% ownership for the total proceeds of RMB 328.0 million (approximately $50.5 million), of which RMB 262.3 million (approximately $40.4 million) will be paid within five days after the signing of the Agreement, and the remainder RMB 65.7 million (approximately $10.1 million) will be paid within one year.  On August 10, 2016, the Company has signed two offset agreements with Tianwu Tongyuan and two of its debtors to offset its payables of RMB 262.3 million (approximately $40.4 million) to its debtors with Tianwu Tongyong. The agreement was amended in April 2017 to set the sale price at  RMB 155.3 million or approximately $23.9 million. The Company received total proceeds of RMB 154.0 million (approximately $23.9 million), the full amount was collected in April 2017.

Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital. The net deficiency of Maoming Hengda as of March 21, 2016 is as follows:

(In thousands)	March 21, 2016
	(Unaudited)
CURRENT ASSETS:
Cash	$	2
Accounts receivable, net		344
Other receivables, net		15
Total current		361
PROPERTY AND EQUIPMENT, NET		16,321
LONG-TERM DEFERRED EXPENSE		2
INTANGIBLE ASSETS, NET OF ACCUMULATED AMORTIZATION		2,023
Total assets	$	18,707
CURRENT LIABILITIES:
Accounts payable		6,377
Short term loans - other		464
Other payables and accrued liabilities		3,033
Other payables - related parties		430
Other payables - intercompany		30,650
Total current liabilities		40,954
NON-CONTROLLING INTEREST		(16	)
Total net deficiency		(22,232	)
Net consideration		(23,507	)
Currency translation adjustment		81
Total addition to paid-in capital	$	(45,658	)

Catalon:

Due to operational issues, Catalon was not able to meet the minimum sales target or minimum net profit applicable as stipulated in the Stock Exchange agreement, therefore the board has voted unanimously to cancel the shares that were placed in escrow for the selling shareholders. As such the Company deconsolidated Catalon on March 31, 2016. The net deficiency of Catalon as of March 31, 2016 is as follows:

(In thousands)	March 31, 2016
CURRENT ASSETS:
Cash	$	24
Total current		24
CURRENT LIABILITIES:
Other payables - related parties		2,279
Total current liabilities		2,279
NON-CONTROLLING INTEREST		(358	)
Total net deficiency		(1,953	)
Net consideration		(4,316	)
Gain in disposal of subsidiary	$	(6,269	)

(o) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows.

(p) Non-controlling interest

Non-controlling interest mainly consists of an individual’s 1% interest in Maoming Hengda prior to March 21, 2016, and two individuals’ 15.5% interest in Catalon prior to March 31, 2016. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company.

(q) Earnings (loss) per share

The Company has adopted the accounting principles generally accepted in the United States regarding earnings per share (“EPS”), which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

(r) Treasury Stock

Treasury stock consists of shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method.

As of both June 30, 2017 and December 31, 2016, the Company had repurchased 494,462 total shares of its common stock, given retroactive effect to the 1-for-5 reverse stock split effective on October 29, 2015, under the share repurchase plan approved by the Board of Directors in December 2010.

(s) Income taxes

The Company accounts for income taxes in accordance with the accounting principles generally accepted in the United States for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The accounting principles generally accepted in the United States for accounting for uncertainty in income taxes clarify the accounting and disclosure for uncertain tax positions.  A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2017, the Company’s income tax returns filed for December 31, 2015, 2014, 2013, 2012 and 2011 remain subject to examination by the taxing authorities.

(t) Share-based compensation

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with the accounting standards regarding accounting for stock-based compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

(u) Recently issued accounting pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The update requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It eliminated the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. For public entities, the ASU is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The objective is to clarify the two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for these areas. The ASU affects the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of ASU 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The object is to address certain issues identified by the FASB-IASB Joint Transition Resource Group for Revenue Recognition. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements. 

In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.  

In October 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-17, Consolidation (Topic 810): Interests held through related parties that are under common control. The amendments in this ASU require that the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the year ending December 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

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Other receivables (including related parties), net

6 Months Ended

Jun. 30, 2017

Other Receivables [Abstract]

Financing Receivables [Text Block]

Note 3– Other receivables (including related parties), net

Other receivables, including related party receivables, net of allowance for doubtful accounts consists of the following:

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Other receivables	$	140		$	170
Other receivables – related party		19,807			71,304
Less: allowance for doubtful accounts		(122	)		(169	)
Net other receivables		19,825			71,305
Less: other receivables – held for sale		(19,822	)		(30,554	)
Net other receivables – continuing operations	$	3		$	40,751

Movement of allowance for doubtful accounts, including related parties, is as follows: 

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Beginning balance	$	169		$	-
Charge to expense		-			169
Write off		(47	)		-
Ending balance		122			169
Less: balance – held for sale		-			-
Ending balance – continuing operations	$	122		$	169

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Supplemental disclosure of cash flow information

6 Months Ended

Jun. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Cash Flow Supplemental Disclosures [Text Block]

Note 4 - Supplemental disclosure of cash flow information

During the six months ended June 30, 2016, the Company increased additional paid-in capital of $45.6 million result from gain on sale of subsidiary to a related party. As of June 30, 2016, the unpaid receivable resulted from this transaction amounted to $23.1 million.

During the six months ended June 30, 2016, the Company incurred $0.2 million share-based compensation expense to prepay for future services.

During the six months ended June 30, 2016, the Company incurred $0.4 million share-based compensation expense to pay off its accrued liabilities.

The Company offset $10.6 million of other receivable – related parties with other payable – related parties for the six months ended June 30, 2016.

During the six months ended June, 2016, the Company incurred $0.04 million share-based compensation expense for consulting services.

During the six months ended June 30, 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016.

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Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 5– Taxes

Income tax

Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended June 30, 2017 and 2016 are as follows:

(In thousands)	The three months ended June 30, 2017		The three months ended June 30, 2016
Current	$	-	$	87
Total provision for income taxes	$	-	$	87
Less: Income taxes from operations disposed		-		(87	)
Income taxes – continuing operations	$	-	$	-

(In thousands)	The six months ended June 30, 2017		The six months ended June 30, 2016
Current	$	-	$	194
Total provision for income taxes	$	-	$	194
Less: Income taxes from operations disposed		-		(194	)
Income taxes – continuing operations	$	-	$	-

Under the Income Tax Laws of the PRC, Tianjin Shuangsi and Maoming Hengda (located in Guangdong province) are subject to income tax at a rate of 25%.

Deferred taxes assets – China

According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for the next five years. The Company’s losses carried forward from operations disposed of $930.6 million has begun to expire in 2016. However, these balance were all disposed after the disposed operations in Longman Joint Venture on December 30, 2015 and after the disposed operations in Maoming Hengda on March 21, 2016. The Chinese government recently announced several policies to curb the real estate price increases across the country which led to a slowdown in demand for construction steel products. Additionally due to the continued global economic slowdown and the overcapacity issues in China's steel market, management expected there would be a sustained increase in margin pressure in the next five years until all the existing but outdated steel capacity across the whole industry are eliminated. Management took into consideration this potential negative impact on average selling price and gross margin of its products, re-performed an operating forecast for the next five years and concluded that the beginning-of-the-year balance of deferred tax assets mainly relating to the net operating loss carry forward may not be fully realizable due to the reduction in the projection of income to be available in the next 5 years. Management therefore decided to provide 100% valuation allowance for the deferred tax assets. The valuation allowance for operations held for sale as of June 30, 2017 and December 31, 2016 was $0 million and $0 million, respectively.

Deferred taxes assets – U.S.

General Steel Holdings, Inc. was incorporated in the United States and has incurred net operating losses for income tax purposes for the nine months ended June 30, 2017. The net operating loss carry forwards for United States income taxes amounted to $7.0 million, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting from 2027 through 2037. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset benefit to reduce the asset to zero. The valuation allowance as of June 30, 2017 was $0 million. The net change in the valuation allowance for the nine months ended June 30, 2017 was $0 million. Management will review this valuation allowance periodically and make adjustments as warranted.

The Company has no cumulative proportionate retained earnings from profitable subsidiaries as of June 30, 2017. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted in the future.

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Related party transactions and balances

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 6 – Related party transactions and balances

Related party transactions

a. The following chart summarized gross sales to related parties for the three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding*		15			-
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		24			26,642
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	115		$	34,362
Less: Sales to related parties from operations disposed			(115	)		(34,362	)
Sales–related parties – continuing operations		$	-		$	-

*The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

Sales to related parties in trading transactions from disposed operations, which were netted against the corresponding cost of goods sold, amounted to $6.4 million net cost of sales and $0.8 million net revenue for the six months ended June 30, 2017 and 2016, respectively.

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	(44	)	$	167
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		15			29,644
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		12,993			40,072
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	13,040		$	77,603
Less: Sales to related parties from operations disposed			(13,040	)		(77,603	)
Sales–related parties – continuing operations		$	-		$	-

b. The following charts summarize purchases from related parties three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhan Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	13		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		13			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,404
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		17			23,618
Total		$	43		$	52,348
Less: Purchases from related parties from operations disposed			(43	)		(52,348	)
Purchases–related parties–continuing operations		$	-		$	-

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	7,048		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		3,011			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,611
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		9,444			23,740
Total		$	19,503		$	52,677
Less: Purchases from related parties from operations disposed			(19,503	)		(52,677	)
Purchases–related parties–continuing operations		$	-		$	-

c. On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has 32% equity interest for RMB 331.3 million or approximately $51 million. The agreement was further amended in April 2017 to set the sale price at RMB 155.3 million or approximately $23.9 million. The Company expected to receive its 99% ownership for the total proceeds of RMB 154.0 million (approximately $23.8 million), of which the full amount would be paid within one year after the signing of the Agreement. Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital.

 Related party balances

a. Accounts receivable – related party:

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	2,872		$	-
Less: Accounts receivable – related party - held for sale			(2,872	)		-
Accounts receivable – related party - continuing operations		$	-		$	-

b. Other receivable – related parties:

Other receivables - related parties are those nontrade receivables arising from transactions through the sales of its subsidiary, which was bought by its related party or arising from transactions through accumulated intercompany payable upon the disposal of its subsidiary.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendler Investment & Management Group Co., Ltd	Common control under CEO	$	1,159		$	43
Tianwu General Steel Material Trading Co., Ltd.	Investee of General Steel (China)		-			22,137
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		14,027			30,396
Beijing Shenghua Xinyuan Metal Materials Co., Ltd	Partially owned by CEO through indirect shareholding		75			116
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		4,340			-
Maoming Hengda	Wholly owned by Tianwu Tongyong		206			18,612
Total			19,807			71,304
Less: other receivable – related parties - held for sale			(19,807	)		(30,554	)
Other receivable – related parties - continuing operations		$	-		$	40,750

c. Accounts payable – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	-	$	6,289
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		-		2,171
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-		4,988
Total			-		13,448
Less: accounts payable – related parties - held for sale			-		(13,448	)
Accounts payable – related parties - continuing operations		$	-	$	-

d. Other payables – related parties:

Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the Group.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendlar Investment & Management Group Co., Ltd	Common control under CEO	$	-		$	32
Yangpu Capital Automobile	Partially owned by CEO through indirect shareholding		95			95
Tianjin Jingqiu Steel Co., Ltd	Partially owned by CEO through indirect shareholding		59			-
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		22,812			-
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding		-			773
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		7,783			48,376
Zuosheng Yu	CEO		1,418			1,329
Total			32,167			50,605
Less: other payables – related parties - held for sale			(22,871	)		(773	)
Other payables – related parties – continuing operations		$	9,296		$	49,832

e. Customer deposit – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Hengying Trading Co, Ltd	Partially owned by CEO through indirect shareholding	$	-	$	12,424
Less: customer deposit – related party - held for sale			-		(12,424	)
Customer deposits – related party – continuing operations			-		-

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Equity

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 7 – Equity

On January 20, 2016, the Company granted 242,466 restricted shares of common stock for financial reporting consulting services. The shares were valued at $1.80 per share, based on the contract if the stock price is less than $1.80, the Company will pay the difference in one year.

On March 15, 2016, the Company granted 30,000 restricted shares of common stock for financial advisory and research coverage services. The shares were valued at $1.26 per share, based on the closing price at the date the Company signed the contract.

On September 30, 2016, the Company issued 127,120 restricted shares of common stock for financial reporting services. The shares were valued at $1.18 per share, based on a negotiated price between the Company and the consultant.

On August 19, 2016, the Company executed a debt cancellation agreement with Oriental Ace Limited, an unrelated third party, in conversion of short-term loan payable of $3.6 million into 3,272,727 shares of Common Stock at $0.35 per share resulting in a gain on debt extinguishment of $2,454,546. These shares have not been issued as the date of the filing.

On September 30, 2016, the Company completed a private placement through the issuance of 1,500,000 shares of the Company’s common stock at $1.00 per shares and raised capital of RMB 10.0 million (approximately $1.5 million). The Company received proceeds in October 2016.

In March 2017, the board approved to issue 200,000 restricted shares to a consultant pursuant to consulting services performed in 2016.

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Acquisition

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 8 – Acquisition

Tianjin Shuangsi Acquisition

On February 16, 2016, the Company received 100% equity interest for a consideration of $0.03 million as Tianjin Shuangsi was established by the chief executive office of the Company’s related entity and his relative. Tianjin Shuangsi primarily trades iron ore, nickel-iron-manganese alloys, and other steel-related products, which the Company would continue on its trading business after the disposition of General Steel (China) and Maoming Hengda.

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Subsequent event

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 9 – Subsequent event

On August 19, 2016, the Company signed a debt cancellation agreement with GS China, a related party, in conversion of the other payables – related party of approximately $21.6 million into 100,000 shares of Common Stock at $1.10 per share and 19,565,758 shares of Series B Preferred Stock at $1.10 per share, which Series B Stock. This agreement was subsequently cancelled and the board approved the cancellation in September 2017.

On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Company does not believe the Act will have any material effect on the Company’s financials as the Company has sufficient NOL to offset any tax impact and has provided full valuation allowance to its deferred tax assets.

On December 31, 2017, the Company sold Tianjin Shuangsi to Wendler Investment & Management Group Co., Ltd, a related party, no consideration was received. Therefore the result of operations was presented as operations to be disposed in December 31, 2016 in the consolidated financial statements for the year ended December 31, 2016. See Note 2(n) – Operations held for sale and operations disposed/to be disposed.

On August 24, 2018, the Company entered into a subscription agreement with Hummingbird Holdings Limited, a BVI entity. Pursuant to the Subscription Agreement, the Investor purchased 7,352,941 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $0.034 per share for aggregate gross proceeds of $250,000.

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Summary of significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

(a) Basis of presentation

The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries as of June 30, 2017: 

Subsidiary		Percentage of Ownership
General Steel Investment Co., Ltd.	British Virgin Islands		100.0	%
Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”)	PRC		100.0	%
Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)	PRC		100.0	%

Consolidation, Policy [Policy Text Block]

(b) Principles of consolidation – subsidiaries

The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.  

All significant inter-company transactions and balances have been eliminated upon consolidation.

Going Concern Policy [Policy Text Block]

(c) Going concern

Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these consolidated financial statements. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. The Company currently has an accumulated deficit, working capital deficit, and incurred negative cash flows from operating activities. These conditions raise substantial doubt as to its ability to continue as a going concern. These consolidated financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on its ability to obtain financial support and credit guarantee from the Company’s shareholders or other available resources from the PRC banks and other financial institutions given the Company’s credit history. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

Use of Estimates, Policy [Policy Text Block]

(d) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and footnotes. Actual results could differ from these estimates.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

(e) Concentration of risks and other uncertainties

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

One of the Company’s customers, a related party individually accounted for 97.9% of total sales from operation disposed for the six months ended June 30, 2017, and none of the Company’s customers individually accounted for more than 10% of total sales from operation disposed for the three months ended June 30, 2017. Three of the Company’s customers, including two related parties accounted for 91.8% of the total sales for the six months ended June 30, 2016 respectively and three of the company’s customers accounted for 99.9% of total sales for the three months ended June 30, 2016, respectively.

One of the Company’s customer, a related party from operation disposed individually accounted for 99.0% of total accounts receivable, including related parties as of June 30, 2017. One of the Company’s customers, a related party, accounted for 100% of the total customer deposit as of December 31, 2016 from operations held for sale.

Three of the Company’s suppliers accounted for 99.1% of the total purchases for the six months ended June 30, 2017. None of the Company’s suppliers, all related parties accounted for more than 99.7% of the total purchases for the three months ended June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 89.0% of the total purchases for the six months June 30, 2016.

None of the Company’s suppliers individually accounted for more than 10% of total accounts payable as of June 30, 2017. Three of the Company’s suppliers, all related parties accounted for 100% of total accounts payable as of December 31, 2016 from operations held for sale.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

(f) Foreign currency translation and other comprehensive income

The reporting currency of the Company is the U.S. dollar. The Company’s subsidiaries and VIE in China use the local currency, Renminbi (“RMB”), as their functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of operations accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included in accumulated other comprehensive income amounted to $2.82 million and $1.37 million as of June 30, 2017 and December 31, 2016, respectively. The balance sheet amounts, with the exception of equity at June 30, 2017 and December 31, 2016 were translated at 6.78 RMB and 6.94 RMB to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to statement of operations accounts for the six months ended June 30, 2017 and 2016 were 6.88 RMB and 6.54 RMB, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet.

The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions.

Fair Value of Financial Instruments, Policy [Policy Text Block]

(g) Financial instruments

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

 Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value.

Cash and Cash Equivalents, Policy [Policy Text Block]

(h) Cash

 Cash includes cash on hand and demand deposits in banks with original maturities of less than three months.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

(i) Accounts receivable and allowance for doubtful accounts

Accounts receivable include trade accounts due from customers and other receivables from cash advances to employees, related parties or third parties. An allowance for doubtful accounts is established and recorded based on managements’ assessment of potential losses based on the credit history and relationships with the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

Inventory, Policy [Policy Text Block]

(j) Inventories

Inventories are mainly finished goods and are stated at the lower of cost or market using the first-in, first-out method. Management reviews inventories for obsolescence and cost in excess of net realizable value at least annually and records a reserve against the inventory and additional cost of goods sold when the carrying value exceeds net realizable value.

Property, Plant and Equipment, Policy [Policy Text Block]

 (k) Equipment, net

Equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with a 3%-5% residual value. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. The estimated useful lives are as follows:

Office Equipment 5 Years

The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations.

Investment, Policy [Policy Text Block]

(l) Investments in unconsolidated entities

Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company accounts for investments with ownership less than 20% using the cost method.

On December 28, 2015 General Steel (China) Co., Ltd sold its 32% equity interest in Tianwu General Steel Material Trading Co., Ltd. to Tongyong Shengyuan, one of the Company’s wholly owned subsidiaries, for $14.9 million (RMB 96.6 million). As of June 30, 2017, Tongyong Shengyuan’s net investment in the unconsolidated entity was $11.6 million

Total investment loss in unconsolidated subsidiaries, which was included in “Loss from equity investment” in the consolidated statements of operations and comprehensive loss, amounted to $0.8 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively and amounted to $1.5 million and $0.3 million for six months ended June 30, 2017 and 2016, respectively.

The Company performed a significance test in accordance with SEC Rule 1-02(w) of Regulation S-X and determined Tianwu qualify as a significant equity investee. The condensed financial statements of Tianwu is presented as follows:

CONDENSED STATEMENT OF OPERATIONS

(In thousands)
	June 30, 2017
NET SALES	$	932
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		85
FINANCE EXPENSES		3,494
OTHER INCOME		(68	)
TOTAL EXPENSES		3,511
LOSS BEFORE PROVISION FOR INCOME TAXES		(2,579	)
PROVISION FOR INCOME TAXES		1
NET LOSS FOR CONTINUING OPERATIONS		(2,580	)
NET LOSS FROM OPERATIONS HELD FOR SALE		(1,981	)
NET LOSS	$	(4,561	)

Revenue Recognition, Policy [Policy Text Block]

(m) Revenue recognition

Sales is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, the Company has no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. Sales represent the invoiced value of goods, net of value-added tax (VAT). All of the Company’s products sold in the PRC are subject to a Chinese value-added tax at a rate of 13% or 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing the finished product.

Gross versus Net Revenue Reporting

In the normal course of the Company’s trading business, the Company orders directly the iron ore, nickel-iron-manganese alloys, and other steel-related products from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the steel-related products delivery, (ii) establishing the selling prices for delivery of the steel-related products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore report revenues and cost of revenues on a net basis.

For the three and six months ended June 30 2017, the Company reported gross sales of $0.2 million and $13.3 million, of which 38.5% and 98.2% were related party sales and the Company had $0.1 million and $19.7 million in purchases, of which 5.6% and 99.1% were related party purchases resulting in net profit of $0.1 million and net cost of sales of $6.4 million in operations held for sale. See details of related party sales and purchases in Note 6.

Discontinued Operations, Policy [Policy Text Block]

(n) Operations held for sale and operations disposed/to be disposed

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.

Reconciliation of the carrying amounts of major classes of assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets which include Tianjin Shuangsi’ operations as of June 30, 2017 and December 31, 2016.

Carrying amounts of major classes of assets included as part of discontinued operations:

	June 30,		December 31,
(In thousands)	2017		2016
ASSETS:
Cash	$	6	$	26
Accounts receivable, net		41		1
Accounts receivable related parties, net		2,872		-
Other receivables, net		15		-
Other receivables – related parties, net		19,807		30,554
Advance on inventory purchase		19		-
Prepaid taxes		1,043		-
Property and equipment, net		1		1
Total assets held for sale		23,084		30,582
Total assets of the disposal group classified as held for sale	$	23,804	$	30,582
Carrying amounts of major classes of liabilities included as part of discontinued operations:
CURRENT LIABILITIES:
Accounts payable, related parties	$	-	$	13,448
Other payables and accrued liabilities		2,950		2,448
Other payables - related parties		22,871		773
Customer deposits - related parties		-		12,242
Taxes payable		40		97
Total current liabilities held for sale		25,861		29,008
Total liabilities of the disposal group classified as held for sale	$	25,861	$	29,008

Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the three and six months ended June 30, 2017 and Catalon and Maoming’s operation for the six months ended June 30, 2016.

	For the six months ended June 30,
Operations Disposed – Catalon and Maoming:	2017		2016
(In thousands)
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		-		(949	)
LOSS FROM OPERATIONS		-		(949	)
				-
OTHER EXPENSE
Finance/interest expense		-		(414	)
Other non-operating expense, net		-		(1,206	)
Other expense, net		-		(1,620	)
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		(2,569	)
PROVISION FOR INCOME TAXES		-		-
NET LOSS FROM OPERATIONS DISPOSED		-		(2,569	)
Less: Net loss attributable to noncontrolling interest from operations disposed		-		(26	)
NET LOSS FROM OPERATIONS DISPOSED	$	-	$	(2,543	)

	For the three months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017		2016
(In thousands)
NET PROFIT		86		365
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		6		18
INCOME FROM OPERATIONS		80		347
OTHER EXPENSE
Finance/interest expense		1		-
Other expense, net		1		-
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		347
PROVISION FOR INCOME TAXES		-		87
NET INCOME FROM OPERATIONS DISPOSED		79		260
Less: Net loss attributable to noncontrolling interest from operations disposed		-		-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	79	$	260

	For the six months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017			2016
(In thousands)
NET PROFIT (LOSS)		(6,413	)		819
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		12			41
(LOSS) INCOME FROM OPERATIONS		(6,425	)		778
OTHER EXPENSE
Finance/interest expense		1			1
Other expense, net		1			1
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		(6,426	)		777
PROVISION FOR INCOME TAXES		-			194
NET LOSS FROM OPERATIONS DISPOSED		(6,426	)		-
Less: Net loss attributable to noncontrolling interest from operations disposed		-			-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	(6,426	)	$	583

Maoming Hengda

On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has a 32% equity interest. The Company expects to receive its 99% ownership for the total proceeds of RMB 328.0 million (approximately $50.5 million), of which RMB 262.3 million (approximately $40.4 million) will be paid within five days after the signing of the Agreement, and the remainder RMB 65.7 million (approximately $10.1 million) will be paid within one year.  On August 10, 2016, the Company has signed two offset agreements with Tianwu Tongyuan and two of its debtors to offset its payables of RMB 262.3 million (approximately $40.4 million) to its debtors with Tianwu Tongyong. The agreement was amended in April 2017 to set the sale price at  RMB 155.3 million or approximately $23.9 million. The Company received total proceeds of RMB 154.0 million (approximately $23.9 million), the full amount was collected in April 2017.

Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital. The net deficiency of Maoming Hengda as of March 21, 2016 is as follows:

(In thousands)	March 21, 2016
	(Unaudited)
CURRENT ASSETS:
Cash	$	2
Accounts receivable, net		344
Other receivables, net		15
Total current		361
PROPERTY AND EQUIPMENT, NET		16,321
LONG-TERM DEFERRED EXPENSE		2
INTANGIBLE ASSETS, NET OF ACCUMULATED AMORTIZATION		2,023
Total assets	$	18,707
CURRENT LIABILITIES:
Accounts payable		6,377
Short term loans - other		464
Other payables and accrued liabilities		3,033
Other payables - related parties		430
Other payables - intercompany		30,650
Total current liabilities		40,954
NON-CONTROLLING INTEREST		(16	)
Total net deficiency		(22,232	)
Net consideration		(23,507	)
Currency translation adjustment		81
Total addition to paid-in capital	$	(45,658	)

Catalon:

Due to operational issues, Catalon was not able to meet the minimum sales target or minimum net profit applicable as stipulated in the Stock Exchange agreement, therefore the board has voted unanimously to cancel the shares that were placed in escrow for the selling shareholders. As such the Company deconsolidated Catalon on March 31, 2016. The net deficiency of Catalon as of March 31, 2016 is as follows:

(In thousands)	March 31, 2016
CURRENT ASSETS:
Cash	$	24
Total current		24
CURRENT LIABILITIES:
Other payables - related parties		2,279
Total current liabilities		2,279
NON-CONTROLLING INTEREST		(358	)
Total net deficiency		(1,953	)
Net consideration		(4,316	)
Gain in disposal of subsidiary	$	(6,269	)

Reclassification, Policy [Policy Text Block]

(o) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows.

Non Controlling Interest [Policy Text Block]

(p) Non-controlling interest

Non-controlling interest mainly consists of an individual’s 1% interest in Maoming Hengda prior to March 21, 2016, and two individuals’ 15.5% interest in Catalon prior to March 31, 2016. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company.

Earnings Per Share, Policy [Policy Text Block]

(q) Earnings (loss) per share

The Company has adopted the accounting principles generally accepted in the United States regarding earnings per share (“EPS”), which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

Treasury Stock [Policy Text Block]

(r) Treasury Stock

Treasury stock consists of shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury stock is accounted for under the cost method.

As of both June 30, 2017 and December 31, 2016, the Company had repurchased 494,462 total shares of its common stock, given retroactive effect to the 1-for-5 reverse stock split effective on October 29, 2015, under the share repurchase plan approved by the Board of Directors in December 2010.

Income Tax, Policy [Policy Text Block]

(s) Income taxes

The Company accounts for income taxes in accordance with the accounting principles generally accepted in the United States for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The accounting principles generally accepted in the United States for accounting for uncertainty in income taxes clarify the accounting and disclosure for uncertain tax positions.  A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of June 30, 2017, the Company’s income tax returns filed for December 31, 2015, 2014, 2013, 2012 and 2011 remain subject to examination by the taxing authorities.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

(t) Share-based compensation

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with the accounting standards regarding accounting for stock-based compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for consideration other than employee services is determined on the earlier of a performance commitment or completion of performance by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

New Accounting Pronouncements, Policy [Policy Text Block]

(u) Recently issued accounting pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The update requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It eliminated the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. For public entities, the ASU is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The objective is to clarify the two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for these areas. The ASU affects the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of ASU 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The object is to address certain issues identified by the FASB-IASB Joint Transition Resource Group for Revenue Recognition. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements. 

In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.  

In October 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-17, Consolidation (Topic 810): Interests held through related parties that are under common control. The amendments in this ASU require that the reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has evaluated and determined that the adoption would not have a material effect on the Company’s financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this ASU is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Management does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. For all entities, this ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management plans to adopt this ASU during the year ending December 2019. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.

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Summary of significant accounting policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Subsidiary of Limited Liability Company or Limited Partnership, Description [Table Text Block]

The consolidated financial statements of the Company reflect the activities of the following major directly owned subsidiaries as of June 30, 2017: 

Subsidiary		Percentage of Ownership
General Steel Investment Co., Ltd.	British Virgin Islands		100.0	%
Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (“Tongyong Shengyuan”)	PRC		100.0	%
Tianjin Shuangsi Trading Co. Ltd. (“Tianjin Shuangsi”)	PRC		100.0	%

Schedule Of Property Plant and Equipment Estimated Useful Life [Table Text Block]

The estimated useful lives are as follows:

Office Equipment 5 Years

Condensed Income Statement [Table Text Block]

CONDENSED STATEMENT OF OPERATIONS

(In thousands)
	June 30, 2017
NET SALES	$	932
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		85
FINANCE EXPENSES		3,494
OTHER INCOME		(68	)
TOTAL EXPENSES		3,511
LOSS BEFORE PROVISION FOR INCOME TAXES		(2,579	)
PROVISION FOR INCOME TAXES		1
NET LOSS FOR CONTINUING OPERATIONS		(2,580	)
NET LOSS FROM OPERATIONS HELD FOR SALE		(1,981	)
NET LOSS	$	(4,561	)

Disposal Groups, Including Discontinued Operations [Table Text Block]

Reconciliation of the carrying amounts of major classes of assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheets which include Tianjin Shuangsi’ operations as of June 30, 2017 and December 31, 2016.

Carrying amounts of major classes of assets included as part of discontinued operations:

	June 30,		December 31,
(In thousands)	2017		2016
ASSETS:
Cash	$	6	$	26
Accounts receivable, net		41		1
Accounts receivable related parties, net		2,872		-
Other receivables, net		15		-
Other receivables – related parties, net		19,807		30,554
Advance on inventory purchase		19		-
Prepaid taxes		1,043		-
Property and equipment, net		1		1
Total assets held for sale		23,084		30,582
Total assets of the disposal group classified as held for sale	$	23,804	$	30,582
Carrying amounts of major classes of liabilities included as part of discontinued operations:
CURRENT LIABILITIES:
Accounts payable, related parties	$	-	$	13,448
Other payables and accrued liabilities		2,950		2,448
Other payables - related parties		22,871		773
Customer deposits - related parties		-		12,242
Taxes payable		40		97
Total current liabilities held for sale		25,861		29,008
Total liabilities of the disposal group classified as held for sale	$	25,861	$	29,008

Reconciliation of the amounts of major classes of income and losses from operations disposed in the unaudited condensed consolidated statements of operations and comprehensive loss which include Shuangsi’s operations for the three and six months ended June 30, 2017 and Catalon and Maoming’s operation for the six months ended June 30, 2016.

	For the six months ended June 30,
Operations Disposed – Catalon and Maoming:	2017		2016
(In thousands)
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		-		(949	)
LOSS FROM OPERATIONS		-		(949	)
				-
OTHER EXPENSE
Finance/interest expense		-		(414	)
Other non-operating expense, net		-		(1,206	)
Other expense, net		-		(1,620	)
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		(2,569	)
PROVISION FOR INCOME TAXES		-		-
NET LOSS FROM OPERATIONS DISPOSED		-		(2,569	)
Less: Net loss attributable to noncontrolling interest from operations disposed		-		(26	)
NET LOSS FROM OPERATIONS DISPOSED	$	-	$	(2,543	)

	For the three months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017		2016
(In thousands)
NET PROFIT		86		365
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		6		18
INCOME FROM OPERATIONS		80		347
OTHER EXPENSE
Finance/interest expense		1		-
Other expense, net		1		-
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		-		347
PROVISION FOR INCOME TAXES		-		87
NET INCOME FROM OPERATIONS DISPOSED		79		260
Less: Net loss attributable to noncontrolling interest from operations disposed		-		-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	79	$	260

	For the six months ended June 30,
Operations held for sale– Tianjin Shuangsi:	2017			2016
(In thousands)
NET PROFIT (LOSS)		(6,413	)		819
SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES		12			41
(LOSS) INCOME FROM OPERATIONS		(6,425	)		778
OTHER EXPENSE
Finance/interest expense		1			1
Other expense, net		1			1
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST		(6,426	)		777
PROVISION FOR INCOME TAXES		-			194
NET LOSS FROM OPERATIONS DISPOSED		(6,426	)		-
Less: Net loss attributable to noncontrolling interest from operations disposed		-			-
NET LOSS FROM OPERATIONS TO BE DISPOSED	$	(6,426	)	$	583

Maoming Hengda

On March 21, 2016, the Company, along with its 1% minority interest holder, jointly signed an equity transfer agreement (the "Agreement") to sell 100% of the equity interest in Maoming Hengda to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, ("Tianwu Tongyong"), a related party, in which the Company has a 32% equity interest. The Company expects to receive its 99% ownership for the total proceeds of RMB 328.0 million (approximately $50.5 million), of which RMB 262.3 million (approximately $40.4 million) will be paid within five days after the signing of the Agreement, and the remainder RMB 65.7 million (approximately $10.1 million) will be paid within one year.  On August 10, 2016, the Company has signed two offset agreements with Tianwu Tongyuan and two of its debtors to offset its payables of RMB 262.3 million (approximately $40.4 million) to its debtors with Tianwu Tongyong. The agreement was amended in April 2017 to set the sale price at  RMB 155.3 million or approximately $23.9 million. The Company received total proceeds of RMB 154.0 million (approximately $23.9 million), the full amount was collected in April 2017.

Accordingly, the Company recorded the total amount of net consideration of $45.7 million in additional-paid-in capital. The net deficiency of Maoming Hengda as of March 21, 2016 is as follows:

(In thousands)	March 21, 2016
	(Unaudited)
CURRENT ASSETS:
Cash	$	2
Accounts receivable, net		344
Other receivables, net		15
Total current		361
PROPERTY AND EQUIPMENT, NET		16,321
LONG-TERM DEFERRED EXPENSE		2
INTANGIBLE ASSETS, NET OF ACCUMULATED AMORTIZATION		2,023
Total assets	$	18,707
CURRENT LIABILITIES:
Accounts payable		6,377
Short term loans - other		464
Other payables and accrued liabilities		3,033
Other payables - related parties		430
Other payables - intercompany		30,650
Total current liabilities		40,954
NON-CONTROLLING INTEREST		(16	)
Total net deficiency		(22,232	)
Net consideration		(23,507	)
Currency translation adjustment		81
Total addition to paid-in capital	$	(45,658	)

Catalon:

Due to operational issues, Catalon was not able to meet the minimum sales target or minimum net profit applicable as stipulated in the Stock Exchange agreement, therefore the board has voted unanimously to cancel the shares that were placed in escrow for the selling shareholders. As such the Company deconsolidated Catalon on March 31, 2016. The net deficiency of Catalon as of March 31, 2016 is as follows:

(In thousands)	March 31, 2016
CURRENT ASSETS:
Cash	$	24
Total current		24
CURRENT LIABILITIES:
Other payables - related parties		2,279
Total current liabilities		2,279
NON-CONTROLLING INTEREST		(358	)
Total net deficiency		(1,953	)
Net consideration		(4,316	)
Gain in disposal of subsidiary	$	(6,269	)

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Other receivables (including related parties), net (Tables)

6 Months Ended

Jun. 30, 2017

Other Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Other receivables, including related party receivables, net of allowance for doubtful accounts consists of the following:

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Other receivables	$	140		$	170
Other receivables – related party		19,807			71,304
Less: allowance for doubtful accounts		(122	)		(169	)
Net other receivables		19,825			71,305
Less: other receivables – held for sale		(19,822	)		(30,554	)
Net other receivables – continuing operations	$	3		$	40,751

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

Movement of allowance for doubtful accounts, including related parties, is as follows: 

	June 30, 2017			December 31, 2016
	(in thousands)			(in thousands)
Beginning balance	$	169		$	-
Charge to expense		-			169
Write off		(47	)		-
Ending balance		122			169
Less: balance – held for sale		-			-
Ending balance – continuing operations	$	122		$	169

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Taxes (Tables)

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Significant components of the provision for income taxes on earnings and deferred taxes on net operating losses from operations for the three months ended June 30, 2017 and 2016 are as follows:

(In thousands)	The three months ended June 30, 2017		The three months ended June 30, 2016
Current	$	-	$	87
Total provision for income taxes	$	-	$	87
Less: Income taxes from operations disposed		-		(87	)
Income taxes – continuing operations	$	-	$	-

(In thousands)	The six months ended June 30, 2017		The six months ended June 30, 2016
Current	$	-	$	194
Total provision for income taxes	$	-	$	194
Less: Income taxes from operations disposed		-		(194	)
Income taxes – continuing operations	$	-	$	-

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Related party transactions and balances (Tables)

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Schedule Of Related Party Sales [Table Text Block]

a. The following chart summarized gross sales to related parties for the three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding*		15			-
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		24			26,642
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	115		$	34,362
Less: Sales to related parties from operations disposed			(115	)		(34,362	)
Sales–related parties – continuing operations		$	-		$	-

*The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

Sales to related parties in trading transactions from disposed operations, which were netted against the corresponding cost of goods sold, amounted to $6.4 million net cost of sales and $0.8 million net revenue for the six months ended June 30, 2017 and 2016, respectively.

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	(44	)	$	167
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		15			29,644
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		12,993			40,072
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			7,720
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		76			-
Total		$	13,040		$	77,603
Less: Sales to related parties from operations disposed			(13,040	)		(77,603	)
Sales–related parties – continuing operations		$	-		$	-

Schedule Of Related Party Purchases [Table Text Block]

b. The following charts summarize purchases from related parties three months and six months ended June 30, 2017 and 2016.

Name of related parties	Relationship	For the three months ended June 30, 2017			For the three months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhan Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	13		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		13			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,404
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		17			23,618
Total		$	43		$	52,348
Less: Purchases from related parties from operations disposed			(43	)		(52,348	)
Purchases–related parties–continuing operations		$	-		$	-

Name of related parties	Relationship	For the six months ended June 30, 2017			For the six months ended June 30, 2016
		(in thousands)			(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	7,048		$	12,044
Wendlar Tianjin Industry Co., Ltd.	Partially owned by CEO through indirect shareholding		3,011			-
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-			12,282
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding		-			4,611
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		9,444			23,740
Total		$	19,503		$	52,677
Less: Purchases from related parties from operations disposed			(19,503	)		(52,677	)
Purchases–related parties–continuing operations		$	-		$	-

Schedule Of Related Party Transactions, Accounts Receivables From Related Party [Table Text Block]

a. Accounts receivable – related party:

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Tianjin Hengying Trading Co., Ltd	Partially owned by CEO through indirect shareholding	$	2,872		$	-
Less: Accounts receivable – related party - held for sale			(2,872	)		-
Accounts receivable – related party - continuing operations		$	-		$	-

Schedule Of Related Party Transactions, Other Receivables Related Parties [Table Text Block]

b. Other receivable – related parties:

Other receivables - related parties are those nontrade receivables arising from transactions through the sales of its subsidiary, which was bought by its related party or arising from transactions through accumulated intercompany payable upon the disposal of its subsidiary.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendler Investment & Management Group Co., Ltd	Common control under CEO	$	1,159		$	43
Tianwu General Steel Material Trading Co., Ltd.	Investee of General Steel (China)		-			22,137
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		14,027			30,396
Beijing Shenghua Xinyuan Metal Materials Co., Ltd	Partially owned by CEO through indirect shareholding		75			116
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		4,340			-
Maoming Hengda	Wholly owned by Tianwu Tongyong		206			18,612
Total			19,807			71,304
Less: other receivable – related parties - held for sale			(19,807	)		(30,554	)
Other receivable – related parties - continuing operations		$	-		$	40,750

Schedule Of Related Party Transactions, Accounts Payable Related Parties [Table Text Block]

c. Accounts payable – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding	$	-	$	6,289
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel)	Partially owned by CEO through indirect shareholding		-		2,171
Tianjin Daqiuzhuang Steel Plates Co., Ltd	Partially owned by CEO through indirect shareholding		-		4,988
Total			-		13,448
Less: accounts payable – related parties - held for sale			-		(13,448	)
Accounts payable – related parties - continuing operations		$	-	$	-

Schedule Of Related Party Transactions, Other Payable Related Parties [Table Text Block]

d. Other payables – related parties:

Other payables – related parties are those nontrade payables arising from transactions between the Company and its related parties, such as advances or payments from these related parties on behalf of the Group.

Name of related parties	Relationship	June 30, 2017			December 31, 2016
		(in thousands)			(in thousands)
Wendlar Investment & Management Group Co., Ltd	Common control under CEO	$	-		$	32
Yangpu Capital Automobile	Partially owned by CEO through indirect shareholding		95			95
Tianjin Jingqiu Steel Co., Ltd	Partially owned by CEO through indirect shareholding		59			-
Tianjin Qiu Steel Investment Co., Ltd	Partially owned by CEO through indirect shareholding		22,812			-
Tianjin Dazhen Industry Co., Ltd	Partially owned by CEO through indirect shareholding		-			773
General Steel (China) Co., Ltd	Partially owned by CEO through indirect shareholding		7,783			48,376
Zuosheng Yu	CEO		1,418			1,329
Total			32,167			50,605
Less: other payables – related parties - held for sale			(22,871	)		(773	)
Other payables – related parties – continuing operations		$	9,296		$	49,832

Schedule Of Related Party Transactions, Customer Deposits Related Parties [Table Text Block]

e. Customer deposit – related party:

Name of related parties	Relationship	June 30, 2017		December 31, 2016
		(in thousands)		(in thousands)
Tianjin Hengying Trading Co, Ltd	Partially owned by CEO through indirect shareholding	$	-	$	12,424
Less: customer deposit – related party - held for sale			-		(12,424	)
Customer deposits – related party – continuing operations			-		-

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Organization and Operations (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2017	Feb. 16, 2016
General Steel Investment Co Ltd [Member]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Tianjin Shuangsi Trading Co [Member]
Noncontrolling Interest, Ownership Percentage by Parent		100.00%
Equity Method Investment, Aggregate Cost		$ 30

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Summary of significant accounting policies (Details)	6 Months Ended
	Jun. 30, 2017
General Steel Investment Co., Ltd. [Member]
Summary Of Significant Accounting Policies [Line Items]
Entity Incorporation, State Country Name	British Virgin Islands
Equity Method Investment, Ownership Percentage	100.00%
Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. ("Tongyong Shengyuan") [Member]
Summary Of Significant Accounting Policies [Line Items]
Entity Incorporation, State Country Name	PRC
Equity Method Investment, Ownership Percentage	100.00%
Tianjin Shuangsi Trading Co. Ltd. ("Tianjin Shuangsi") [Member]
Summary Of Significant Accounting Policies [Line Items]
Entity Incorporation, State Country Name	PRC
Equity Method Investment, Ownership Percentage	100.00%

XML

Summary of significant accounting policies (Details 1)	6 Months Ended
	Jun. 30, 2017
Office Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	5 years

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Summary of significant accounting policies (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary Of Significant Accounting Policies [Line Items]
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	$ 19,314	$ 324,400	$ 113,557	$ 1,682,597
FINANCE EXPENSES	(1,143)	15	867	64
LOSS BEFORE PROVISION FOR INCOME TAXES	(775,609)	(556,097)	(1,573,619)	4,238,966
PROVISION FOR INCOME TAXES	0	0	0	0
NET LOSS FROM OPERATIONS HELD FOR SALE	0	0	0	(2,568,935)
NET LOSS	$ (695,889)	$ (295,861)	(7,999,033)	$ 2,278,963
Tianwu General Steel Material Trading Co Ltd [Member] | Product [Member]
Summary Of Significant Accounting Policies [Line Items]
NET SALES			932,000
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			85,000
FINANCE EXPENSES			3,494,000
OTHER INCOME			(68,000)
TOTAL EXPENSES			3,511,000
LOSS BEFORE PROVISION FOR INCOME TAXES			(2,579,000)
PROVISION FOR INCOME TAXES			1,000
NET LOSS FOR CONTINUING OPERATIONS			(2,580,000)
NET LOSS FROM OPERATIONS HELD FOR SALE			(1,981,000)
NET LOSS			$ (4,561,000)

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Summary of significant accounting policies (Details 3) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Mar. 21, 2016
CURRENT ASSETS:
Cash		$ 6,000		$ 6,000		$ 26,000
Accounts receivable, net		41,000		41,000		1,000
Accounts receivable related parties, net		2,872,000		2,872,000		0
Other receivables, net		15,000		15,000		0
Other receivables – related parties, net		19,807,000		19,807,000		30,554,000
Advance on inventory purchase		19,000		19,000		0
Prepaid taxes		1,043,000		1,043,000		0
Property and equipment, net		1,000		1,000		1,000
Total assets held for sale		23,084,000		23,084,000		30,582,000
Total current		23,803,717		23,803,717		30,581,807
OTHER ASSETS:
Total assets of the disposal group classified as held for sale		23,804,000		23,804,000		30,582,000
CURRENT LIABILITIES:
Accounts payable, related parties		0		0		13,448,000
Other payables and accrued liabilities		2,950,000		2,950,000		2,448,000
Other payables - related parties		22,871,000		22,871,000		773,000
Customer deposits - related parties		0		0		12,242,000
Taxes payable		40,000		40,000		97,000
Total current liabilities held for sale		25,860,585		25,860,585		29,006,872
NON-CURRENT LIABILITIES HELD FOR SALE
Total liabilities of the disposal group classified as held for sale		25,861,000		25,861,000		$ 29,008,000
Gain in disposal of subsidiary		$ 0	$ 0	$ 0	$ 6,268,930
Maoming Hengda - operation disposed
CURRENT ASSETS:
Cash							$ 2,000
Accounts receivable, net							344,000
Other receivables, net							15,000
Property and equipment, net							16,321,000
Total current							361,000
OTHER ASSETS:
Long-term deferred expense							2,000
Intangible assets, net of accumulated amortization							2,023,000
CURRENT LIABILITIES:
Accounts payable							6,377,000
Short term loans - others							464,000
Other payables and accrued liabilities							3,033,000
Other payables - related parties							430,000
Other payables - intercompany							30,650,000
Total current liabilities held for sale							40,954,000
NON-CURRENT LIABILITIES HELD FOR SALE
Total liabilities of the disposal group classified as held for sale							18,707,000
NON-CONTROLLING INTEREST							(16,000)
Total net deficiency							(22,232,000)
Net consideration							(23,507,000)
Currency translation adjustment							81,000
Total addition to paid-in capital							$ (45,658,000)
Catalon Chemical Corp [Member]
CURRENT ASSETS:
Cash	$ 24,000
Total current	24,000
CURRENT LIABILITIES:
Other payables - related parties	2,279,000
Total current liabilities held for sale	2,279,000
NON-CURRENT LIABILITIES HELD FOR SALE
NON-CONTROLLING INTEREST	(358,000)
Total net deficiency	(1,953,000)
Net consideration	(4,316,000)
Gain in disposal of subsidiary	$ (6,269,000)

XML

Summary of significant accounting policies (Details 4) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary Of Significant Accounting Policies [Line Items]
NET PROFIT (LOSS)			$ (6,413,000)	$ 819,000
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			12,000	41,000
(LOSS) INCOME FROM OPERATIONS			(6,425,000)	778,000
OTHER EXPENSE
Finance/interest expense			1,000	1,000
Other expense, net			1,000	1,000
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST			(6,426,000)	777,000
PROVISION FOR INCOME TAXES	$ 0	$ (87,000)	0	194
NET LOSS FROM OPERATIONS DISPOSED			(6,426,000)	0
Less: Net loss attributable to noncontrolling interest from operations disposed	0	0	0	(25,706)
NET LOSS FROM OPERATIONS TO BE DISPOSED	0	0	0	(2,568,935)
Catalon and Maoming [Member]
Summary Of Significant Accounting Policies [Line Items]
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			0	(949,000)
(LOSS) INCOME FROM OPERATIONS			0	(949,000)
OTHER EXPENSE
Finance/interest expense			0	(414,000)
Other non-operating expense, net			0	(1,206,000)
Other expense, net			0	(1,620,000)
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST			0	(2,569,000)
PROVISION FOR INCOME TAXES			0	0
NET LOSS FROM OPERATIONS DISPOSED			0	(2,569)
Less: Net loss attributable to noncontrolling interest from operations disposed			0	(26,000)
NET LOSS FROM OPERATIONS TO BE DISPOSED			$ 0	$ (2,543,000)
Tianjin Shuangsi [Member]
Summary Of Significant Accounting Policies [Line Items]
NET PROFIT (LOSS)	86,000	365,000
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	6,000	18,000
(LOSS) INCOME FROM OPERATIONS	80,000	347,000
OTHER EXPENSE
Finance/interest expense	1,000	0
Other expense, net	1,000	0
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST	0	347,000
PROVISION FOR INCOME TAXES		87
NET LOSS FROM OPERATIONS DISPOSED	79,000	260,000
Less: Net loss attributable to noncontrolling interest from operations disposed	0	0
NET LOSS FROM OPERATIONS TO BE DISPOSED	$ 79,000	$ 260,000

XML

Summary of significant accounting policies (Details Textual) ¥ / shares in Units, $ / shares in Units, ¥ in Millions			1 Months Ended				3 Months Ended		6 Months Ended				12 Months Ended
	Aug. 10, 2016 USD ($)	Aug. 10, 2016 CNY (¥)	Apr. 30, 2017 USD ($)	Apr. 30, 2017 CNY (¥)	Mar. 21, 2016 USD ($)	Mar. 21, 2016 CNY (¥)	Jun. 30, 2017 USD ($) shares	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) shares	Jun. 30, 2017 USD ($) ¥ / shares shares	Jun. 30, 2016 USD ($)	Jun. 30, 2016 ¥ / shares	Dec. 31, 2016 USD ($) $ / shares shares	Jun. 30, 2017 ¥ / shares	Dec. 31, 2016 ¥ / shares	Dec. 28, 2015 USD ($)	Dec. 28, 2015 CNY (¥)
Summary Of Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage					32.00%
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent									$ 2,820,000				$ 1,370,000
Foreign Currency Exchange Translation Rate Balance Sheet Items | (per share)													$ 1.00	¥ 6.78	¥ 6.94
Foreign Currency Exchange Average Translation Rate | ¥ / shares										¥ 6.88		¥ 6.54
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions							$ 800,000	$ 200,000	$ 1,500,000		$ 300,000
Treasury Stock, Shares | shares							494,462		494,462	494,462			494,462
Due from Related Parties							$ 19,807,000		$ 19,807,000	¥ 19,807,000			$ 71,304,000
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures							$ 11,588,084		11,588,084	¥ 11,588,084			$ 12,758,610
Proceeds from Sale of Equity Method Investments			$ 23,900,000	¥ 154.0
Description of Percentage of Sales Made By Each Customer							more than 10% of total sales
Other Payables, Offset											$ 10,600,000
Tianwu Tongyuan [Member]
Summary Of Significant Accounting Policies [Line Items]
Other Payables, Offset	$ 40,400,000	¥ 262.3
Related Party [Member]
Summary Of Significant Accounting Policies [Line Items]
Cost of Purchases							$ 100,000		19,700,000
Sales Revenue Good Gross							$ 200,000		13,300,000
Disposal Group, Including Discontinued Operation, Costs of Goods Sold									$ 6,400,000
Related Party Transaction Purchases From Related Party Percentage							5.60%		99.10%
Related Party Transaction Sales To Related Party Percentage							38.50%		98.20%
Disposal Group Including Discontinued Operation Net Profit Loss									$ 100,000
Customer Concentration Risk [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage									97.90%
Sales [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage									99.00%		100.00%
Accounts Receivable [Member] | Supplier Concentration Risk [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage									10.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage													100.00%
Purchases [Member] | Supplier Concentration Risk [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage							99.70%
Purchases [Member] | Supplier One Concentration Risk[] [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage									99.10%		89.00%
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Salvage Value, Percentage							5.00%		5.00%	5.00%
Percentage Of Ownership, Significant Influence							50.00%		50.00%	50.00%
Value Added Tax Rate									17.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Salvage Value, Percentage							3.00%		3.00%	3.00%
Percentage Of Ownership, Significant Influence							20.00%		20.00%	20.00%
Value Added Tax Rate									13.00%
Customer One [Member] | Sales [Member] | Customer Concentration Risk [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage								99.90%			91.80%
Maoming Hengda [Member]
Summary Of Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage					99.00%
Additional Paid in Capital, Net Consideration					$ 45,700,000
Proceeds from Sale of Equity Method Investments					40,400,000	¥ 262.3
Equity Method Investment, Amount Sold					50,500,000	328.0
Equity Method Investment Disposed Proceeds Receivable					$ 10,100,000	¥ 65.7
Maoming Hengda - operation disposed
Summary Of Significant Accounting Policies [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					1.00%			1.00%			1.00%	1.00%
Tianwu General Steel Material Trading Co Ltd [Member]
Summary Of Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage																32.00%	32.00%
Due from Related Parties																$ 14,900,000	¥ 96.6
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures							$ 11,600,000		$ 11,600,000	¥ 11,600,000
Tianwu Tongyong [Member]
Summary Of Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage					32.00%
Proceeds from Sale of Equity Method Investments			$ 23,900,000	¥ 155.3
Agreement [Member]
Summary Of Significant Accounting Policies [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					100.00%
Catalon Chemical Corp [Member]
Summary Of Significant Accounting Policies [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					15.50%

XML

Other receivables (including related parties), net (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other receivables	$ 140	$ 170
Other receivables – related party	19,807	71,304
Less: allowance for doubtful accounts	(122)	(169)
Net other receivables	19,825	71,305
Less: other receivables – held for sale	(19,822)	(30,554)
Net other receivables – continuing operations	$ 3	$ 40,751

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Other receivables (including related parties), net (Details 1) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Charge to expense	$ 0	$ 167,055
Other Receivables [Member]
Beginning balance	169,000	$ 0	$ 0
Charge to expense	0		169,000
Write off	(47,000)		0
Ending balance	122,000		169,000
Less: balance – held for sale	0		0
Ending balance – continuing operations	$ 122,000		$ 169,000

XML

Supplemental disclosure of cash flow information (Details Textual) - USD ($)	1 Months Ended			6 Months Ended
	Sep. 30, 2016	Mar. 15, 2016	Jan. 20, 2016	Jun. 30, 2017	Jun. 30, 2016
Supplemental Disclosure Of Cash Flow Information [Line Items]
Gain (Loss) on Disposition of Stock in Subsidiary					$ 45,600,000
Disposal Group, Including Discontinued Operation, Consideration					23,100,000
Share-based Compensation				$ 0	696,838
Other Payables, Offset					10,600,000
Stock Issued During Period, Shares, Issued for Services	127,120	30,000	242,466
Accrued Liabilities [Member]
Supplemental Disclosure Of Cash Flow Information [Line Items]
Share-based Compensation					400,000
Prepayments [Member]
Supplemental Disclosure Of Cash Flow Information [Line Items]
Share-based Compensation					200,000
Consultancy Services [Member]
Supplemental Disclosure Of Cash Flow Information [Line Items]
Share-based Compensation					$ 40,000
Consultancy Services [Member] | Restricted Stock [Member]
Supplemental Disclosure Of Cash Flow Information [Line Items]
Stock Issued During Period, Shares, Issued for Services				200,000

XML

Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Taxes [Line Items]
Current	$ 0	$ 87,000	$ 0	$ 194,000
Total provision for income taxes	0	87,000	0	(194)
Less: Income taxes from operations disposed	0	(87,000)	0	(194,000)
Income taxes – continuing operations	$ 0	$ 0	$ 0	$ 0

XML

Taxes (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Taxes [Line Items]
Effective Income Tax Rate Reconciliation, Percent	35.00%
Percentage Of Deferred Tax Asset	100.00%
Deferred Tax Assets Valuation Period	5 years
Discontinued Operations [Member]
Taxes [Line Items]
Net operating (losses) carried forward	$ 930.6
Deferred Tax Assets, Valuation Allowance	$ 0.0	$ 0.0
UNITED STATES [Member]
Taxes [Line Items]
Percentage Of Deferred Tax Asset	100.00%
Net operating (losses) carried forward	$ 7.0
Valuation Allowance, Deferred Tax Asset, Change in Amount	0.0
Deferred Tax Assets, Valuation Allowance	$ 0.0
Subsidiaries [Member]
Taxes [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%

XML

Related party transactions and balances (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017		Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 115		$ 34,362	$ 13,040	$ 77,603
Less: Sales to related parties from operations disposed	(115)		(34,362)	(13,040)	(77,603)
Sales–related parties – continuing operations	$ 0		0	$ 0	0
Tianjin Dazhen Trading Co Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship				Partially owned by CEO through indirect shareholding
Revenue from Related Parties				$ (44)	167
Wendlar Tianjin Industry Co., Ltd. [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	[1]		Partially owned by CEO through indirect shareholding
Revenue from Related Parties	$ 15		0	$ 15	29,644
Tianjin Hengying Trading Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Revenue from Related Parties	$ 24		26,642	$ 12,993	40,072
Tianjin Daqiuzhuang Steel Plates Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Revenue from Related Parties	$ 0		7,720	$ 0	7,720
Tianjin Qiu Steel Investment Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Revenue from Related Parties	$ 76		$ 0	$ 76	$ 0

[1] The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

XML

Related party transactions and balances (Details 1) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017		Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transaction [Line Items]
Purchases from Related Party	$ 43		$ 52,348	$ 19,503	$ 52,677
Less: Purchases from related parties from operations disposed	(43)		(52,348)	(19,503)	(52,677)
Purchases–related parties–continuing operations	$ 0		0	$ 0	0
Tianjin Dazhan Industry Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Purchases from Related Party	$ 13		12,044	$ 7,048	12,044
Wendlar Tianjin Industry Co., Ltd. [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	[1]		Partially owned by CEO through indirect shareholding
Purchases from Related Party	$ 13		0	$ 3,011	0
Tianjin Daqiuzhuang Steel Plates Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Purchases from Related Party	$ 0		12,282	$ 0	12,282
Tianjin Hengying Trading Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Purchases from Related Party	$ 0		4,404	$ 0	4,611
General Steel (China) Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding			Partially owned by CEO through indirect shareholding
Purchases from Related Party	$ 17		$ 23,618	$ 9,444	$ 23,740

[1] The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

XML

Related party transactions and balances (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Less: Accounts receivable – related party - held for sale	$ (2,872)	$ (2,872)	$ 0
Accounts receivable – related party - continuing operations	$ 0	$ 0	0
Tianjin Hengying Trading Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	Partially owned by CEO through indirect shareholding
Accounts receivable - related parties	$ 2,872	$ 2,872	$ 0

XML

Related party transactions and balances (Details 3) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017		Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Total	$ 19,807,000		$ 19,807,000	$ 71,304,000
Less: other receivable – related parties - held for sale	(19,807,000)		(19,807,000)	(30,554,000)
Other receivable – related parties - continuing operations	0		$ 0	40,749,746
Wendler Investment & Management Group Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship			Common control under CEO
Total	1,159,000		$ 1,159,000	43,000
Tianwu General Steel Material Trading Co., Ltd. [Member]
Related Party Transaction [Line Items]
Related Party Relationship			Investee of General Steel (China)
Total	$ 0		$ 0	22,137,000
General Steel (China) Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding		Partially owned by CEO through indirect shareholding
Total	$ 14,027,000		$ 14,027,000	30,396,000
Beijing Shenghua Xinyuan Metal Materials Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship			Partially owned by CEO through indirect shareholding
Total	$ 75,000		$ 75,000	116,000
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel) [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	[1]	Partially owned by CEO through indirect shareholding
Total	$ 4,340,000		$ 4,340,000	0
Maoming Hengda [Member]
Related Party Transaction [Line Items]
Related Party Relationship			Wholly owned by Tianwu Tongyong
Total	$ 206,000		$ 206,000	$ 18,612,000

[1] The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

XML

Related party transactions and balances (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017		Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Accounts payable - related party	$ 0		$ 0	$ 13,448
Less: accounts payable – related parties - held for sale	0		0	(13,448)
Accounts payable – related parties - continuing operations	$ 0		$ 0	0
Tianjin Dazhen Industry Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding		Partially owned by CEO through indirect shareholding
Accounts payable - related party	$ 0		$ 0	6,289
Wendlar Tianjin Industry Co., Ltd.(Formerly known as Qiu Steel) [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	[1]	Partially owned by CEO through indirect shareholding
Accounts payable - related party	$ 0		$ 0	2,171
Tianjin Daqiuzhuang Steel Plates Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding		Partially owned by CEO through indirect shareholding
Accounts payable - related party	$ 0		$ 0	$ 4,988

[1] The CEO is referred to herein as the chief executive officer of General Steel Holdings, Inc. Mr. Zuosheng Yu.

XML

Related party transactions and balances (Details 5) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Other payables - related parties	$ 32,167	$ 32,167	$ 50,605
Less: other payables – related parties - held for sale	(22,871)	(22,871)	(773)
Other payables – related parties – continuing operations	9,296	$ 9,296	49,832
Wendlar Investment & Management Group Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship		Common control under CEO
Other payables - related parties	0	$ 0	32
Yangpu Capital Automobile [Member]
Related Party Transaction [Line Items]
Related Party Relationship		Partially owned by CEO through indirect shareholding
Other payables - related parties	95	$ 95	95
Tianjin Jingqiu Steel Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship		Partially owned by CEO through indirect shareholding
Other payables - related parties	$ 59	$ 59	0
Tianjin Qiu Steel Investment Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	Partially owned by CEO through indirect shareholding
Other payables - related parties	$ 22,812	$ 22,812	0
Tianjin Dazhen Industry Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship		Partially owned by CEO through indirect shareholding
Other payables - related parties	$ 0	$ 0	773
General Steel (China) Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	Partially owned by CEO through indirect shareholding
Other payables - related parties	$ 7,783	$ 7,783	48,376
Zuosheng Yu [Member]
Related Party Transaction [Line Items]
Related Party Relationship		CEO
Other payables - related parties	$ 1,418	$ 1,418	$ 1,329

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Related party transactions and balances (Details 6) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Less: customer deposit – related party - held for sale	$ 0	$ 0	$ (12,424)
Customer deposits – related party – continuing operations	$ 0	$ 0	0
Tianjin Hengying Trading Co, Ltd [Member]
Related Party Transaction [Line Items]
Related Party Relationship	Partially owned by CEO through indirect shareholding	Partially owned by CEO through indirect shareholding
Customer deposits - related parties	$ 0	$ 0	$ 12,424

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Related party transactions and balances (Details Textual) ¥ in Millions, $ in Millions	1 Months Ended		6 Months Ended
	Apr. 30, 2017 USD ($)	Apr. 30, 2017 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Mar. 21, 2016 USD ($)	Mar. 21, 2016 CNY (¥)
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage					32.00%	32.00%
Proceeds from Sale of Equity Method Investments	$ 23.9	¥ 154.0
Addition To Paid in Capital Equity Method Investments Net Consideration	45.7
Maoming Hengda Steel Company Ltd [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners				1.00%	1.00%	1.00%
Tianwu Tongyong [Member]
Related Party Transaction [Line Items]
Equity Method Investments					$ 51.0	¥ 331.3
Equity Method Investment, Ownership Percentage					32.00%	32.00%
Proceeds from Sale of Equity Method Investments	23.9	155.3
Noncontrolling Interest [Member] | Maoming Hengda Steel Company Ltd [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					1.00%	1.00%
Parent Company [Member]
Related Party Transaction [Line Items]
Proceeds from Sale of Equity Method Investments	$ 23.8	¥ 154.0
Parent Company [Member] | Maoming Hengda Steel Company Ltd [Member]
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage	99.00%	99.00%
Discontinued Operations [Member]
Related Party Transaction [Line Items]
Cost Of Goods Sold From Related Parties			$ 6.4	$ 0.8

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Equity (Details Textual) $ / shares in Units, ¥ in Millions	1 Months Ended
	Mar. 31, 2017 shares	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2016 CNY (¥) shares	Aug. 19, 2016 USD ($) $ / shares shares	Mar. 15, 2016 $ / shares shares	Jan. 20, 2016 $ / shares shares
Stock Issued During Period, Shares, Issued for Services		127,120	127,120		30,000	242,466
Shares Issued, Price Per Share | $ / shares		$ 1.18			$ 1.26	$ 1.80
Private Placement [Member]
Stock Issued During Period, Shares, New Issues		1,500,000	1,500,000
Shares Issued, Price Per Share | $ / shares		$ 1.00
Stock Issued During Period, Value, New Issues		$ 1,500,000	¥ 10.0
Oriental Ace Limited [Member]
Shares Issued, Price Per Share | $ / shares				$ 0.35
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $				$ 3,600,000
Stock Issued During Period, Shares, Conversion of Convertible Securities				3,272,727
Gain (Loss) on Extinguishment of Debt | $				$ 2,454,546
Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	200,000

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Acquisition (Details Textual) - Tianjin Shuangsi Trading Co Ltd [Member] $ in Thousands	1 Months Ended
	Feb. 16, 2016 USD ($)
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Business Combination, Consideration Transferred	$ 30

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Subsequent event (Details Textual) - USD ($)	1 Months Ended		6 Months Ended	12 Months Ended
	Aug. 24, 2018	Aug. 19, 2016	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2016	Sep. 30, 2016	Mar. 15, 2016	Jan. 20, 2016
Common Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001
Shares Issued, Price Per Share						$ 1.18	$ 1.26	$ 1.80
Effective Income Tax Rate Reconciliation, Percent			35.00%
Scenario, Forecast [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001
Shares Issued, Price Per Share	$ 0.034
Stock Issued During Period, Shares, New Issues	7,352,941
Stock Issued During Period, Value, New Issues	$ 250,000
Scenario, Plan [Member]
Effective Income Tax Rate Reconciliation, Percent				21.00%
GS China [Member]
Shares Issued, Price Per Share		$ 1.10
Debt Conversion, Original Debt, Amount		$ 21,600,000
Debt Conversion, Converted Instrument, Shares Issued		100,000
GS China [Member] | Series B Preferred Stock [Member]
Shares Issued, Price Per Share		$ 1.10
Debt Conversion, Converted Instrument, Shares Issued		19,565,758