Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | DQ |
Entity Registrant Name | DAQO NEW ENERGY CORP. |
Entity Central Index Key | 1,477,641 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 260,836,578 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 14,490,011 | $ 7,068,483 |
Restricted cash | 19,062,713 | 22,169,236 |
Accounts receivable, net of allowance for doubtful accounts of $3,189,110 and $1,087,465 as of December 31, 2014 and 2015 | 19,849,608 | 8,714,261 |
Note receivables | 11,109,695 | 50,239,886 |
Prepaid expenses and other current assets | 12,235,141 | 12,835,869 |
Advances to suppliers | 1,028,287 | 1,352,747 |
Inventories | 10,715,939 | 9,581,784 |
Amounts due from related parties | 284,633 | 9,986,968 |
Total current assets | 88,776,027 | 121,949,234 |
Property, plant and equipment, net | 544,326,125 | 559,006,119 |
Prepaid land use rights | 27,122,287 | $ 29,006,693 |
Deferred tax assets-non current | $ 626,965 | |
Other non-current assets | $ 169,173 | |
TOTAL ASSETS | $ 660,851,404 | 710,131,219 |
Current liabilities: | ||
Short-term bank borrowings, including current portion of long-term bank borrowings | 123,936,995 | 159,803,876 |
Accounts payable | 17,491,292 | 16,784,156 |
Note payables | 20,152,962 | 48,941,807 |
Advances from customers | 8,183,376 | 7,308,535 |
Payables for purchases of property, plant and equipment | 49,674,887 | 64,575,527 |
Accrued expenses and other current liabilities | 8,616,831 | 8,955,663 |
Amount due to related parties | 46,396,527 | $ 89,698,151 |
Income tax payable | 940,732 | |
Total current liabilities | 275,393,602 | $ 396,067,715 |
Long-term bank borrowings | $ 118,548,430 | 77,336,160 |
Advances from customers | 3,401,667 | |
Deferred government subsidies | $ 25,252,882 | 26,557,607 |
Total liabilities | $ 419,194,914 | $ 503,363,149 |
Commitments and contingencies (Note 17) | ||
Daqo New Energy Corp. shareholders' equity: | ||
Ordinary shares; $0.0001 per value 500,000,000 shares authorized as of December 31, 2014 and 2015; 225,864,103 and 279,214,103 shares issued as of December 31, 2014 and 2015, respectively and 223,577,853 and 260,836,578 shares outstanding as of December 31, 2014 and 2015, respectively | $ 26,320 | $ 22,358 |
Additional paid in capital | 236,358,070 | 203,125,494 |
Accumulated losses | (3,061,404) | (16,018,293) |
Accumulated other comprehensive income | 8,780,313 | 20,037,183 |
Treasury Stock, at cost (2,286,250 and 4,643,150 shares as of December 31, 2014 and 2015, respectively) | (1,748,836) | (398,672) |
Total shareholders' equity | 240,354,463 | $ 206,768,070 |
Noncontrolling interest | 1,302,027 | |
Total equity | 241,656,490 | $ 206,768,070 |
TOTAL LIABILITIES AND EQUITY | $ 660,851,404 | $ 710,131,219 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 1,087,465 | $ 3,189,110 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 279,214,103 | 225,864,103 |
Ordinary shares, shares outstanding | 260,836,578 | 223,577,853 |
Treasury Stock, shares | 4,643,150 | 2,286,250 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Revenues | $ 182,040,968 | $ 182,571,852 | $ 108,999,805 |
Cost of revenues | |||
Total cost of revenues | (144,491,083) | (139,308,511) | (135,103,408) |
Gross (loss) profit | 37,549,885 | 43,263,341 | (26,103,603) |
Operating (expenses) income: | |||
Selling, general and administrative expenses | (12,603,824) | (10,293,851) | (18,132,515) |
Research and development expenses | (923,664) | (1,486,978) | (3,391,012) |
Other operating income, net | 3,824,881 | $ 552,444 | 5,420,777 |
Long-lived asset impairment | (1,622,588) | (158,424,827) | |
Total operating expenses | (11,325,195) | $ (11,228,385) | (174,527,577) |
(Loss) income from operations | 26,224,690 | 32,034,956 | (200,631,180) |
Interest expense | (13,173,958) | (15,654,106) | (19,349,190) |
Interest income | 493,995 | 324,118 | 149,752 |
Exchange (loss) gain | 640,678 | (55,792) | 11,875 |
(Loss) income before income taxes | 14,185,405 | $ 16,649,176 | (219,818,743) |
Income tax expense | (1,137,821) | (1,271,765) | |
Net (loss) income | 13,047,584 | $ 16,649,176 | (221,090,508) |
Net (loss) income attributable to noncontrolling interest | 90,695 | (150,147,024) | |
Net (loss) income attributable to Daqo New Energy Corp. ordinary shareholders | $ 12,956,889 | $ 16,649,176 | $ (70,943,484) |
NET (LOSS) EARNINGS PER ORDINARY SHARE | |||
Basic-ordinary shares | $ 0.05 | $ 0.08 | $ (0.41) |
Diluted-ordinary shares | $ 0.05 | $ 0.08 | $ (0.41) |
ORDINARY SHARES USED IN CALCULATING EARNINGS PER ORDINARY SHARE | |||
Basic-ordinary shares | 258,015,851 | 206,349,976 | 173,068,420 |
Diluted-diluted shares | 261,411,933 | 211,353,643 | 173,068,420 |
Products [Member] | Third parties [Member] | |||
Revenues | |||
Revenues | $ 166,942,726 | $ 158,256,598 | $ 93,710,464 |
Products [Member] | Related parties [Member] | |||
Revenues | |||
Revenues | 9,069,816 | 15,840,748 | 13,471,866 |
Service Fee [Member] | Third parties [Member] | |||
Revenues | |||
Revenues | 3,203,298 | 5,165,254 | $ 1,817,475 |
Service Fee [Member] | Related parties [Member] | |||
Revenues | |||
Revenues | $ 2,825,128 | $ 3,309,252 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract] | |||
Net (loss) income | $ 13,047,584 | $ 16,649,176 | $ (221,090,508) |
Other comprehensive income: | |||
Foreign currency translation adjustments | (11,286,150) | (3,662,013) | 5,543,033 |
Total other comprehensive income | (11,286,150) | (3,662,013) | 5,543,033 |
Comprehensive (loss) income | 1,761,434 | $ 12,987,163 | (215,547,475) |
Comprehensive (loss) income attributable to noncontrolling interest | 61,415 | (148,752,181) | |
Comprehensive (loss) income attributable to Daqo New Energy Corp. shareholders | $ 1,700,019 | $ 12,987,163 | $ (66,795,294) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Ordinary shares [Member] | Treasury Stock [Member] | Additional paid in capital [Member] | Accumulated Loss [Member] | Accumulated other comprehensive income [Member] | Noncontrolling interest [Member] |
Balance at Dec. 31, 2012 | $ 340,877,413 | $ 17,288 | $ (494,928) | $ 144,755,902 | $ 38,276,015 | $ 19,551,006 | $ 138,772,130 |
Balance, shares at Dec. 31, 2012 | 172,877,433 | ||||||
Net income (loss) | (221,090,508) | $ (70,943,484) | (150,147,024) | ||||
Other comprehensive income | 5,543,033 | $ 4,148,190 | $ 1,394,843 | ||||
Share-based compensation | 1,881,401 | $ 1,881,401 | |||||
Options Exercised | 135,171 | $ 55 | $ 96,256 | $ 38,860 | |||
Options Exercised, shares | 550,420 | ||||||
Repurchase of stock, shares | |||||||
Deconsolidation of Daqo New Material Co., Ltd. | 9,980,051 | $ (9,980,051) | |||||
Balance at Dec. 31, 2013 | 137,326,561 | $ 17,343 | $ (398,672) | $ 146,676,163 | $ (32,667,469) | $ 23,699,196 | |
Balance, shares at Dec. 31, 2013 | 173,427,853 | ||||||
Net income (loss) | 16,649,176 | $ 16,649,176 | |||||
Other comprehensive income | (3,662,013) | $ (3,662,013) | |||||
Share-based compensation | 1,792,819 | $ 1,792,819 | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | 54,624,447 | $ 5,000 | 54,619,447 | ||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively, shares | 50,000,000 | ||||||
Options Exercised | 37,080 | $ 15 | 37,065 | ||||
Options Exercised, shares | 150,000 | ||||||
Repurchase of stock, shares | |||||||
Balance at Dec. 31, 2014 | 206,768,070 | $ 22,358 | $ (398,672) | $ 203,125,494 | $ (16,018,293) | $ 20,037,183 | |
Balance, shares at Dec. 31, 2014 | 223,577,853 | ||||||
Net income (loss) | 13,047,584 | $ 12,956,889 | |||||
Other comprehensive income | (11,286,150) | $ (11,256,870) | |||||
Share-based compensation | 3,687,951 | $ 3,687,951 | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | 27,996,959 | $ 3,850 | 27,993,109 | ||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively, shares | 38,500,000 | ||||||
Options Exercised | $ 275,783 | $ 112 | $ 275,671 | ||||
Options Exercised, shares | 1,115,625 | 1,115,625 | |||||
Repurchase of stock | $ (1,350,164) | $ (1,350,164) | |||||
Repurchase of stock, shares | (2,356,900) | ||||||
Capital injection from noncontrolling shareholders | 2,516,457 | $ 1,275,845 | $ 1,240,612 | ||||
Balance at Dec. 31, 2015 | $ 241,656,490 | $ 26,320 | $ (1,748,836) | $ 236,358,070 | $ (3,061,404) | $ 8,780,313 | $ 1,302,027 |
Balance, shares at Dec. 31, 2015 | 260,836,578 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY [Abstract] | ||
Follow-on equity offering, issuance costs | $ 2,033,041 | $ 3,375,553 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net (loss) income | $ 13,047,584 | $ 16,649,176 | $ (221,090,508) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Long-lived assets impairment | 1,622,588 | 158,424,827 | |
Share-based compensation | 3,687,951 | $ 1,792,819 | 1,881,401 |
Inventory write-down | 62,422 | 175,568 | 29,905,734 |
Allowance for doubtful accounts | (2,026,567) | (3,823,744) | 5,482,019 |
Depreciation of property, plant and equipment | 31,361,026 | 28,007,943 | $ 52,250,595 |
Loss on disposal of Property Plant and Equipment | 166,283 | $ 314,728 | |
Deferred tax assets | (626,965) | $ 1,415,502 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (10,399,283) | $ 4,775,333 | 12,431,119 |
Note receivables | 36,898,166 | (34,702,180) | (11,496,473) |
Prepaid expenses and other current assets | 30,465 | 10,217,835 | 29,616 |
Advances to suppliers | 264,361 | (513,373) | (122,753) |
Inventories | (1,622,269) | 484,562 | (25,270,470) |
Amount due from related parties | 5,481,362 | 2,193,604 | (6,853,965) |
Prepaid land use rights | 595,716 | 623,413 | 264,549 |
Other non-current assets | 161,657 | 229,688 | 4,513,271 |
Accounts payable | 1,452,811 | (475,966) | 5,349,428 |
Note payables | (14,733,475) | 31,992,814 | (19,760,436) |
Accrued expenses and other current liabilities | 59,045 | $ 1,677,622 | 468,946 |
Income tax payable | 940,732 | (160,480) | |
Advances from customers | (2,051,000) | $ (13,813,120) | (4,254,342) |
Amount due to related parties | 2,178,445 | (453,075) | (415,960) |
Deferred government subsidies | (124,842) | 266,082 | 482,563 |
Net cash (used in) provided by operating activities | 66,426,213 | 45,619,729 | (16,525,817) |
Investing activities: | |||
Purchases of property, plant and equipment | (81,364,037) | (77,028,755) | (32,504,507) |
(Decrease)/Increase in restricted cash | 2,121,603 | $ (13,560,277) | $ 1,823,635 |
Proceeds from disposition of Nanjing Daqo | $ 5,110,085 | ||
Decrease in cash on deconsolidation of Daqo New Material | $ (15,241) | ||
Net cash used in investing activities | $ (74,132,349) | $ (90,589,032) | (30,696,113) |
Financing activities: | |||
Proceeds from related parties loans | 245,957,818 | 275,134,122 | 157,271,287 |
Repayment of related parties loans | (276,575,346) | (275,088,560) | (69,386,568) |
Proceeds from bank borrowings | 237,031,976 | 176,114,553 | 74,551,991 |
Repayment of bank borrowings | (220,611,404) | $ (186,549,888) | $ (113,745,197) |
Purchase and retirement of treasury shares | (1,350,164) | ||
Proceeds from options exercised | 275,783 | $ 37,080 | $ 135,171 |
Proceeds from follow-on equity offering | 30,030,000 | 58,000,000 | |
Insurance cost for follow-on equity offering | (2,033,041) | (3,375,553) | |
Capital injection from noncontrolling shareholders | 2,516,457 | ||
Net cash provided by financing activities | 15,242,079 | 44,271,754 | $ 48,826,684 |
Effect of exchange rate changes on cash and cash equivalents | (114,415) | (65,052) | (452,694) |
Net increase (decrease) in cash and cash equivalents | 7,421,528 | (762,601) | 1,152,060 |
Cash and cash equivalents at the beginning of the year | 7,068,483 | 7,831,084 | 6,679,024 |
Cash and cash equivalents at the end of the year | 14,490,011 | 7,068,483 | 7,831,084 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | 13,284,899 | $ 17,771,457 | $ 19,657,071 |
Income taxes paid | 2,726,825 | ||
Supplemental schedule of non-cash investing activities: | |||
Purchases of property, plant and equipment included in payables | 52,523,129 | $ 79,989,590 | $ 51,766,695 |
Purchases of property, plant and equipment included in amounts due to related parties | $ 262,974 | $ 5,651,053 | $ 940,135 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1 The consolidated financial statements include the financial statements of Daqo New Energy Corp. (the “Company”), its wholly owned subsidiaries, Chongqing Daqo New Energy Co., Ltd. (“Chongqing Daqo”), Xinjiang Daqo New Energy Co., Ltd (“Xinjiang Daqo”), Daqo Solar Energy North America (“Daqo America”) (which was liquidated in 2013) and Daqo New Energy Holdings (Canada) Ltd.(“Daqo Canada”) (which was liquidated in 2013) and its consolidated variable interest entity (“VIE”) Daqo New Material Co., Ltd. (“Daqo New Material”) (which was deconsolidated on December 31, 2013) (collectively, the “Group”). The Company was incorporated on November 22, 2007 in the Cayman Islands. Chongqing Daqo, and Xinjiang Daqo were incorporated by the Company on January 14, 2008, December 20, 2007 and February 22, 2011, respectively, in the Peoples' Republic of China (“PRC”). Daqo America was incorporated by the Company in January 2009, in California, USA. Daqo Canada was incorporated by the Company in April 2011, in Hamilton, Ontario, Canada. Daqo New Material and the Company were under common control by Daqo New Material's ultimate shareholders prior to November 11, 2009. Daqo New Material was established by Daqo Group, an affiliate of the Company on November 16, 2006, for the primary purpose of developing a photovoltaic business. Daqo New Material's activities included acquiring land use rights and constructing certain polysilicon production infrastructure, including buildings and production machinery and equipment. Chongqing Daqo acquired additional machinery and equipment that are used in connection with Daqo New Material's land and production infrastructure. Subsequent to its establishment, Chongqing Daqo entered into a lease agreement with Daqo New Material to rent all of Daqo New Material's land, production infrastructure and machinery and equipment for the Group's polysilicon production. The lease period was from July 1, 2008 to December 31, 2013, with monthly lease payments that had been renegotiated periodically and were eliminated in consolidation. The lease agreement also provided that if Daqo New Material transferred the ownership of the leased assets to any third party, the lease agreement would remain effective and enforceable against the new owner. One month before the expiry of the lease period, Chongqing Daqo had the option to renew the lease on the same terms and conditions for an additional five-year periods. Furthermore, Chongqing Daqo had the option to purchase, or to designate any person to purchase, the leased assets at the then fair value at any time during the lease period or within one year following the lease period, if permitted by the PRC laws and regulations. If Daqo New Material desired to transfer the ownership of the leased assets to a third party, Chongqing Daqo had the right of first refusal to acquire the leased assets under the same conditions. If the leased assets were transferred to a third party, the lease agreement was remain effective and enforceable against the new owner. Because the aggregate value of the monthly rental payments that Chongqing Daqo is contractually obligated to make to Daqo New Material represents the majority of the value of Daqo New Material's assets, Chongqing Daqo has the majority of investment risk in Daqo New Material. Further, the Group has concluded that the arrangement results in Chongqing Daqo providing an implicit guarantee to protect Daqo Group from absorbing losses incurred by Daqo New Material, thus Daqo New Material is considered to be a variable interest entity of Chongqing Daqo. Furthermore, the operating activities of Daqo New Material are most closely associated with Chongqing Daqo and the management of Chongqing Daqo also acts as the management of Daqo New Material. Based on these factors, Chongqing Daqo has the power to control Daqo New Material and is considered the primary beneficiary of Daqo New Material. The assets and liabilities of Daqo New Material are consolidated at historical cost given they were held by entities under common control at the time of the lease agreement. Daqo Group's total equity interests in Daqo New Material are presented as a noncontrolling interest. On December 31, 2013, Chongqing Daqo and Daqo New Material terminated the lease agreement. As a result, the Company deconsolidated Daqo New Material on December 31, 2013. In the periods presented, the Group manufactured and sold polysilicon and wafers through Chongqing Daqo and Xinjiang Daqo. In August 2015, the Company's subsidiary, Xinjiang Daqo, issued stock representing 1 100 2.5 |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group's ability to generate cash flows from operations, and the Group's ability to arrange adequate financing arrangements, including the renewal or rollover of its bank borrowings, to support its working capital requirements. As of December 31, 2015, the Company's current liabilities exceed its current assets by $ 186.6 14.5 123.9 15.5 However, the Group regards the going concern assumption as appropriate considering the following plans and actions: 1. The Group generated net income and positive cash flow from operations for two 2. The Group has performed a review of its cash flow forecasts for the twelve month period ending December 31, 2016, and believes that its operating cash flow will be positive during the twelve month period ending December 31, 2016. 3. The Group has or is in the process of taking a number of cost reduction initiatives, including the new hydrochlorination system, technology improvement and polysilicon capacity expansion in Xinjiang. 4. On February 22, 2016, the Group obtained a letter of financial support from Daqo Group which has committed to provide sufficient financial support to the Group to ensure the Group has the funds required to satisfy its obligations as they come due in the normal course during the twelve months ending December 31, 2016. Further, the support letter provides that Daqo Group will not require the Group to pay the amount owed to the Daqo Group and subsidiaries of Daqo Group before January 1, 2017, which at December 31, 2015 totaled $ 46.4 5. As of December 31, 2015, the Group has available bank accepted note facilities of $ 22.6 Based on the above factors, management believes that adequate sources of liquidity will exist to fund the Group's working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due. (b) Basis of consolidations The consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated on consolidation. (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Management has made significant estimates in a variety of areas, including but not limited to allowance for doubtful accounts, useful lives and residual values of long-lived assets, impairment for long lived assets, valuation allowances for deferred tax assets, interest capitalization and certain assumptions used in the computation of share-based compensation and related forfeiture rates. The Group revised the estimates of expected useful lives of property, plant and equipment on January 1, 2014, please refers to Note 2 (i) for details. (d) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and notes receivable. The Group places its cash and cash equivalents in various financial institutions in the PRC. The Group believes that no significant credit risk exists as these banks are principally government-owned financial institutions with high credit ratings. Accounts receivable represent those receivables derived in the ordinary course of business. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts mainly based on aging of the receivables and other factors surrounding the credit risk of specific customers. Allowance for doubtful accounts is $ 3,189,110 1,087,465 The following customers accounted for 10% or more of accounts receivable: Accounts December 31, receivable 2014 2015 Customer C $ 2,213,393 $ * Customer J $ 1,578,947 $ 2,996,042 Customer M $ 1,330,145 $ * Customer H $ 1,071,415 $ 6,354,510 Customer N $ * $ 2,315,035 Customer B $ * $ 2,299,732 * Represents less than 10% From time to time, certain accounts receivable balances are settled in the form of notes receivable. As of December 31, 2014 and 2015, notes receivable represents bank acceptance drafts that are non-interest bearing and due within 6 months. Total sales to the Group's largest customers whose sales constitute over 10% of revenue accounted for approximately 30 23 51 Furthermore, all of the Group's long-term bank borrowings are guaranteed by Daqo Group, our related party, who has also committed to provide financial support to meet the Group's short term bank borrowings obligations, other liabilities and commitments as they become due (see Note 2(a)). The Group's access to credit is significantly reliant on Daqo Group's ability and willingness to continue to provide sufficient financial support (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased. (f) Restricted cash Restricted cash of $ 22,169,236 19,062,714 (g) Allowance for Doubtful Accounts The Group determines its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of trade receivables. In determining its allowance for doubtful accounts, the Group also considers other economic factors, such as aging trends. The Group believes that its process of specific review of customers combined with overall analytical review provides an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts are recorded as general and administrate expense in the consolidated statements of operations. (h) Inventories Inventories are stated at lower of cost or market. Costs are determined using weighted average costs. Costs comprise direct materials, direct labor and overhead costs incurred in bringing the inventories to their present location and condition. The Group writes down the cost of excess inventories to the estimated market value based on historical and forecasted demand. Estimated market value is measured as the estimated selling price of each class of inventory in the ordinary course of business less estimated costs of completion and disposal. The charges to inventory for the years ended December 31, 2013, 2014 and 2015 were $ 29,905,734 175,568 62,422 The Group has outsourced portions of its manufacturing process, including cutting ingots into wafers, and converting wafers into solar cells, to various third-party manufacturers. These outsourcing arrangements may or may not include transfer of title of the raw material inventory (ingots, wafers or cells) to the third-party manufacturers. For those outsourcing arrangements in which title does not transfer, the Group maintains the inventory in the balance sheet as raw materials inventory while it is in physical possession of the third-party manufacturers. Upon receipt of the processed inventory from the third-party manufacturers, it is reclassified to work-in-progress inventory with the processing fee capitalized as cost of inventory. For those outsourcing arrangements in which title (including risk of loss) does transfer to the third-party manufacturer, the Group is contractually obligated to repurchase the processed inventory. To accomplish this, it enters into raw material sales agreements and processed inventory purchase agreements simultaneously with the third-party manufacturer. In such instances, where they are, in substance tolling arrangements, the Group retains the inventory in the consolidated balance sheets while it is in the physical possession of the third-party manufacturer. The cash received from the third-party manufacturer is recorded as a current liability on the balance sheet rather than revenue or deferred revenue. Upon receipt of the processed inventory, it is reclassified from raw materials to work-in-progress inventory and the processing fee paid to the third-party manufacturer is added to inventory cost. Cash payments for outsourcing arrangements which require prepayment for repurchase of the processed inventory are classified as current assets on the balance sheet. If there is no legal right of offset established by these arrangements, the associated assets and liabilities are presented separately on the balance sheet until the processed inventory is returned to the Group. (i) Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the following estimated useful lives: Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6 The Group reassesses the reasonableness of the estimates of useful lives and residual values of long-lived assets when events or changes in circumstances indicate that the useful lives and residual values of a major asset or a major category of assets may not be reasonable. Factors that the Group considers in deciding when to perform an analysis of useful lives and residual values of long-lived assets include, but are not limited to, significant variance of a business or product line in relation to expectations, significant deviation from industry or economic trends, and significant changes or planned changes in the use of the assets. The analysis will be performed at the asset or asset category with the reference to the assets' conditions, current technologies, market, and future plan of usage and the useful lives of major competitors. Costs incurred on construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. In 2013, the Company decided to relocate a majority of Chongqing's polysilicon assets to Xinjiang. As part of the decision to make significant investment to relocate the assets, the Company revisited the expectation as to the useful lives of these assets. Based on this review, the Company determined that the condition of its major assets, having now been in operations for a meaningful percentage of the original estimated lives, were in better condition, than the original useful life expectation had predicted, accordingly, the Company with the assistant of an independent valuation firm reassessed the remaining economic useful life of the polysilicon assets in both Chongqing and Xinjiang. The analysis was completed in the first quarter of 2014 10 15 20 30 18.7 18.7 18.7 0.09 18.7 0.07 Interest expense incurred for construction of property, plant, and equipment is capitalized as part of the cost of such assets. The Group capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. Interest expense capitalized for the years ended December 31, 2013, 2014 and 2015 was $ nil 1,960,259 2,825,879 (j) Prepaid land use rights All land in the PRC is owned by the PRC government. The PRC government, according to PRC law, may sell the land use rights for a specified period of time. The Group's land use rights in the PRC are stated at cost less recognized lease expenses. Lease expense is recognized over the term of the agreement on a straight-line basis. The Group recorded lease expenses of $ 781,706 628,052 595,716 (k) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors that the Group considers in deciding when to perform an impairment review include, but are not limited to significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planed changes in the use of the assets. An impairment analysis is performed at the lowest level of identifiable independent cash flows for an asset or asset group. The Group makes subjective judgments in determining the independent cash flows that can be related to a specific asset group based on the asset usage model and manufacturing capabilities. The Group measures the recoverability of assets that will continue to be used in the operations by comparing the carrying value of the asset group to the estimate of the related total future undiscounted cash flows. If an asset group's carrying value is not recoverable through the related undiscounted cash flows, the impairment loss is measured by comparing the difference between the asset group's carrying value and its fair value. The Group determines the fair value of an asset or asset group utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. During each of the three year ended December 31, 2013, 2014 and 2015, the impairment changes were $ 158,424,827 nil 1,622,588 (l) Revenue recognition Product sales The Group recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of the sales contracts transfer title and risk of loss to customers upon receipt. Sales agreements for polysilicon and wafers typically do not contain product warranties except for return and replacement of defective products within a period generally ranging from 3 to 30 days from delivery. Sales agreements typically do not contain post-shipment obligations or other return or credit provisions. Customers frequently pay for products prior to the delivery of the products. Advance payments are recorded as advances from customers. Service revenue The Group also provides OEM services to customers, such as the provision of service to process polysilicon into ingots and wafers. The Group recognizes revenue when there is persuasive evidence of an arrangement, the service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured (m) Cost of revenues Cost of revenues consists of production related costs including costs of silicon raw materials, electricity and other utilities, consumables, direct labor, overhead costs, depreciation of property, plant and equipment, and manufacturing waste treatment processing fees. Cost of revenues does not include shipping and handling expenses, therefore the Group's cost of revenues may not be comparable to other companies which include such expense in their costs of revenues. (n) Shipping and handling Costs to ship products to customers are recorded as selling expenses in the consolidated statements of operations. Costs to ship products to customers were $ 1,901,384 2,054,786 2,708,962 (o) Research and development expenses Research and development expenses include materials and utilities consumed in research and development activities, payroll and related costs and depreciation of property and equipment associated with the research and development activities, which are expensed when incurred. In the years ended December 31, 2014 and 2015, the Group incurred additional research and development expenses for its Xinjiang Phase II polysilicon facilities to achieve the targets for quality, capacity and cost during the pilot production period. (p) Government subsidies The Group receives unrestricted cash subsidies from local government agencies. The government agencies use their discretion to determine the amount of the subsidies with reference to land use right fees, value-added tax and income taxes paid, bank loan interest expenses paid or electricity consumed by the Group, however, these subsidies do not represent tax refunds or reimbursements of expenditures. The subsidies are unrestricted as to use and can be utilized by the Group in any manner it deems appropriate. The Group has utilized, and expects to continue to utilize, these subsidies to fund general operating expenses. The Group records unrestricted cash government subsidies as other operating income in the consolidated statements of operations. Unrestricted cash government subsidies received for the years ended December 31, 2013, 2014 and 2015 were $ 5,249,788 926,173 3,578,865 1,172,160 113,735 690,889 (q) Income taxes Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amount in the consolidated financial statements, net operating loss carry-forwards and credits by applying enacted 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. (r) Share-based compensation The Group recognizes share-based compensation in the consolidated statement of operations based on the fair value of equity awards on the date of the grant, with compensation expense recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. The Group has made an estimate of expected forfeiture and is recognizing compensation costs only for those equity awards expected to vest. The share-based compensation expenses have been categorized as either selling, general and administrative expenses, research and development expenses or cost of sales, depending on the job functions of the grantees. For the years ended December 31, 2013, 2014 and 2015, the Group recognized share-based compensation expense of $1,881,401, $1,792,819 and $3,687,951, respectively, which was classified as follows: Year ended December 31, 2013 2014 2015 Selling, general and administrative expenses $ 1,743,768 $ 1,544,078 $ 3,323,948 Research and development expenses 60,987 12,310 — Cost of sales 76,646 236,431 364,003 Total $ 1,881,401 $ 1,792,819 $ 3,687,951 (s) (Loss) earnings per share Basic (loss) earnings per ordinary share are computed by dividing the net (loss) net income attributable to ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the year. Diluted earnings per share is computed using the treasury stock method. (t) Foreign currency translation The reporting currency of the Company is the United States dollar (“U.S. dollar”). The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in other currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange in effect at the balance sheet dates. Transactions dominated in currencies other than the U.S. dollar during the year are converted into U.S. dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in the statements of operations. The financial records of the Company's PRC subsidiaries and VIE are maintained in Chinese Renminbi (“RMB”), which is their functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated at average rate of exchange prevailing during the periods presented. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statement of changes in equity and comprehensive income. The RMB is not a freely convertible currency. The State Administration for Foreign Exchange of People's Republic of China, under the authority of the People's Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group's aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to $ 24,356,970 30,891,550 (u) Comprehensive income Our financial statements include the Consolidated Statements of Comprehensive (Loss) Income as required by new accounting guidance, which we retrospectively adopted during 2012. As of December 31 2014 and 2015, Accumulated Other Comprehensive Income was comprised entirely of foreign currency translation adjustments. (v) Fair value of financial instruments The Group estimates fair value of financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The fair value measurement guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. • Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. • Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group's own assumptions about the assumptions that market participants would use to price an asset or liability. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group's evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group's consolidated assets, liabilities, shareholders' equity and net income or loss. The Group's financial instruments include cash and cash equivalents, restricted cash, accounts receivable, other current assets, amount due from related parties, accounts payable, other current liabilities, payables for purchase of property, plant and equipment, amounts due to related parties and short-term and current portion of long-term bank borrowings. The carrying amounts of these short-term financial instruments approximate their fair values due to the short-term maturity of these instruments. The fair values of the Group's plant and equipment and long-term bank borrowings as of December 31, 2014 and 2015 are estimated by discounted cash flow technique using an interest rate corresponding to debt with similar maturities and risks on the measurement date. (w) Variable Interest Entity The Group uses a qualitative approach in assessing the consolidation requirement for variable interest entities. The approach focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity's economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. In the event that the Group is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in the Group's Consolidated Financial Statements. (x) Noncontrolling interest The Group classified the ownership interest in the consolidated entity held by a party other than the Group to noncontrolling interest in the consolidated financial statements. It also reported the consolidated net income at amounts that include the amounts attributable to both the parent and the noncontrolling interest on the face of the Consolidated Statements of Operations. Xinjiang Daqo Investment's equity interests in Xinjiang Daqo are presented as a noncontrolling interest as of December 31, 2015. The non-controlling interest was $ 1,302,027 (y) Treasury Stock On July 9, 2012, the Company's Board of Directors authorized the Company to repurchase up to $ 5 nil nil 2,356,900 nil nil 1,350,164 (z) Recent accounting pronouncements On August 27, 2014, the FASB issued ASU 2015-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity's ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In May 2014, the FASB issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g. assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. 2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January 2015, the FASB issued a new pronouncement which eliminates from U.S. GAAP the concept of extraordinary items. This ASU required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item |
EXIT and DISPOSAL ACTIVITIES
EXIT and DISPOSAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
EXIT and DISPOSAL ACTIVITIES [Abstract] | |
EXIT and DISPOSAL ACTIVITIES | 3 Relocation of Polysilicon Operations to Xinjiang Starting 2013, the Group commenced a plan to expand the capacity at the Xinjiang plant and is in the process of relocating significant production assets, with a carrying value of $ 144.7 158.4 0.8 0.5 In August 2014, the Board of Directors approved the Company to launch an early stage research for the Polysilicon Phase III Expansion Project in Xinjiang. After a comprehensive analysis of the capacity and comparability of the Chongqing machinery and equipment, the Company concluded that it would be more efficient to use part of the machinery and equipment in Phrase III, rather than using all of them in Phrase II Expansion Project. As a result, the Company has changed its original relocation plan and determined to utilize a portion of these equipment and machinery in Polysilicon Phase III Expansion Project in Xinjiang. As of December 31, 2014, about $ 46.1 286.4 116.1 720.5 70.0 434.1 During the year ended December 31, 2014, additional $ 0.8 As originally planned, the Group has fully ramp up its Polysilicon Phase II Expansion Project since August 2015, and then the capacity of Xinjiang Daqo is increased from 6,150MT to 12,150MT. Additionally, in July 2015, the Board of Directors approved the first stage of Phase III Expansion Project, which is expected to increase the capacity from 12,150 MT to 18,000 MT. The Company plans to commence initial production and fully ramp up this expansion project by the first quarter and second quarter of 2017 respectively. Construction and equipment installation is expected to be completed by the end of 2016. In 2015, the Group has already started initial work, including but not limited to applications for relevant government permits and approvals. As a significant part of Phase III Expansion Project in Xinjiang, the Group is in the process of relocating and repurposing the remaining polysilicon machinery and equipment in Chongqing of $ 59.1 383.9 1.6 1.6 1.1 7.0 0.3 0.2 0.1 During the year ended December 31, 2015, additional $ 0.1 2.2 |
FOLLOW-ON EQUITY OFFERING
FOLLOW-ON EQUITY OFFERING | 12 Months Ended |
Dec. 31, 2015 | |
FOLLOW-ON EQUITY OFFERING [Abstract] | |
FOLLOW-ON EQUITY OFFERING | 4. FOLLOW-ON EQUITY OFFERING In May 2014, the Company issued and sold 2,000,000 50,000,000 3.4 54.6 In February 2015, the Company issued 1,540,000 38,500,000 2.0 28.0 |
ALLOWANCES FOR DOUBTFUL RECEIVA
ALLOWANCES FOR DOUBTFUL RECEIVABLES | 12 Months Ended |
Dec. 31, 2015 | |
ALLOWANCES FOR DOUBTFUL RECEIVABLES [Abstract] | |
ALLOWANCES FOR DOUBTFUL RECEIVABLES | 5. ALLOWANCES FOR DOUBTFUL RECEIVABLES The Group made provisions for doubtful accounts receivables in the aggregate amount of $5,482,019 during the year ended December 31, 2013. The Group reversed provision for doubtful accounts receivables in the aggregate amount of $3,823,744 and $2,026,567 during the year ended 2014 and 2015 respectively. Analysis of allowances for accounts receivable is as follows: Year ended December 31, 2013 2014 2015 Beginning of the year $ 1,592,467 $ 7,160,782 $ 3,189,110 Allowances (Reversal) during the year 5,482,019 (3,823,744 ) (2,026,567 ) Foreign exchange effect 86,296 (147,928 ) (75,078 ) Closing balance $ 7,160,782 $ 3,189,110 $ 1,087,465 As of December 31, 2013, the Group provided full allowance for certain long aging receivables based on available information on the customer's deteriorated credit risks and poor financial performance. Along with the recovery of solar industry and continued legal actions, the Group was able to collect payments on these receivable, as such, allowance of $ 3,823,744 2,026,567 |
PREPAID EXPENSE AND OTHER CURRE
PREPAID EXPENSE AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
PREPAID EXPENSE AND OTHER CURRENT ASSETS [Abstract] | |
PREPAID EXPENSE AND OTHER CURRENT ASSETS | 6. PREPAID EXPENSE AND OTHER CURRENT ASSETS Prepaid expense and other current assets consist of the following: December 31, 2014 2015 Spare parts $ 6,385,388 $ 6,052,315 Prepaid Value added tax (“VAT”) 5,857,017 5,552,772 Prepaid insurance fee 226,564 347,631 Others 366,900 282,423 Total $ 12,835,869 $ 12,235,141 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | 7. INVENTORIES Inventories consist of the following: December 31, 2014 2015 Raw materials $ 1,362,944 $ 2,343,104 Work-in-process 5,411,360 5,626,531 Finished goods 2,807,480 2,746,304 Total $ 9,581,784 $ 10,715,939 Inventory write-down was $ 29,905,734 175,568 62,422 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consist of the following: December 31, 2014 2015 Cost Buildings and plant $ 233,230,935 $ 313,290,516 Machinery and equipment 351,409,724 389,373,554 Furniture, fixtures and equipment 18,469,913 22,418,768 Motor vehicles 257,408 293,331 Less: Accumulated depreciation (169,264,463 ) (188,680,279 ) Property, plant and equipment, net $ 434,103,517 $ 536,695,889 Construction in process 124,902,602 7,630,236 Total $ 559,006,119 $ 544,326,125 Depreciation expense was $ 52,250,595 28,007,943 31,361,026 The Company recognized impairments for long-lived assets of $ 158,424,827 , $ nil and $ 1,622,588 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
BORROWINGS [Abstract] | |
BORROWINGS | 9. BORROWINGS The Group's bank borrowings consisted of the following: December 31, 2014 2015 Short-term bank borrowings $ 90,443,007 $ 72,360,730 Long-term bank borrowings, current portion 69,360,869 51,576,265 Total borrowings, current 159,803,876 123,936,995 Long-term bank borrowings, non-current portion 77,336,160 118,548,430 Total $ 237,140,036 $ 242,485,425 Short-term bank borrowings The Group's short-term bank borrowing consisted of the following: December 31, 2014 2015 Short-term bank borrowing guaranteed by Daqo Group and Mr. Guangfu Xu and Mr. Xiang Xu $ 27,389,890 $ - Short-term borrowing guaranteed by Daqo Group and related parties - 72,360,730 Short-term borrowing guaranteed by Daqo Group and a third party 11,278,190 - Short-term credit bank borrowings 51,774,927 - Total $ 90,443,007 $ 72,360,730 The Group had available credit of $ 22.6 The weight average interest rate on the short-term bank borrowing was 6.8 5.4 Long-term bank borrowings The long-term bank borrowings, including current portion, as of December 31, 2014 and 2015 are comprised of December 31, 2014 2015 Borrowing from China Construction Bank $ 6,444,680 $ - Borrowing from Huaxia Bank 25,778,720 3,079,180 Borrowing from Bank of China 101,503,710 70,821,140 Borrowing from Chongqing Rural Commercial Bank 12,969,919 96,224,375 Total $ 146,697,029 $ 170,124,695 On September 28, 2011, Chongqing Daqo entered into a four-year credit facility agreement with Huaxia Bank with maximum amount of $ 61.6 400 58.5 380 20.0 130 6.65 38.5 250 6.9 3.1 20 55.4 360 8.1 On September 30, 2011, Xinjiang Daqo entered into a six-year long term facility agreement with Bank of China. Such borrowing is restricted to the purchase of fixed assets and has a maximum borrowing credit amounted to $ 115.5 750 ), 5 The borrowing is guaranteed by Daqo Group, Daqo New Material, two affiliated companies under Daqo Group and Mr. Guangfu Xu. On June 30, 2014, an amendment to this credit facility was signed between Xinjiang Daqo and Bank of China, under which machinery and equipment with a total carrying amount of 73.9 million was pledged as collaterals for this credit facility. As of December 31, 2015, Xinjiang Daqo had drawn down $ 115.5 750 5.41 44.6 290 On June 25, 2015, Xinjiang Daqo entered into a six-year long term facility agreement with Chongqing Rural Commercial Bank. Such borrowing is restricted to renovation and extension project of polysilicon and has a maximum borrowing credit amounted to $ 96.2 625 20 96.2 625 5.8 The weighted average interest rate as of December 31, 2014 and 2015 for the Group's long-term bank borrowings was 6.9 5.7 The principal maturities of these long-term bank borrowings as of December 31, 2015 are as follows: December 31, 2015 Amount 2016 $ 51,576,265 2017 53,885,650 2018 18,475,080 2019 18,475,080 2020 18,475,080 2021 9,237,540 Total $ 170,124,695 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 31, 2014 2015 Accrued payroll and welfare $ 3,309,850 $ 3,524,876 Accrued professional fees 576,786 776,518 Other tax payables 2,263,055 2,298,780 Interest payable 148,995 38,054 Contingent liability (Note 18) 400,000 — Others 2,256,977 1,978,603 Total $ 8,955,663 $ 8,616,831 |
ADVANCES FROM CUSTOMERS
ADVANCES FROM CUSTOMERS | 12 Months Ended |
Dec. 31, 2015 | |
ADVANCES FROM CUSTOMERS [Abstract] | |
ADVANCES FROM CUSTOMERS | 11. ADVANCES FROM CUSTOMERS Advances from customers represent prepayments from customers and are recognized as revenue in accordance with the Group's revenue recognition policy. Advances from customers consist of the following and is analyzed as long term and short term portion respectively: December 31, 2014 2015 Customer E $ 8,041,836 $ 3,237,308 Customer F 2,405,619 1,517,402 Customer I — 1,539,590 Customer L 111 781,342 Others 262,636 1,107,734 Total $ 10,710,202 $ 8,183,376 Less: Current portion of advances from customers $ 7,308,535 $ 8,183,376 Long term advances from customers $ 3,401,667 $ — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS Nonrecurring Fair Value Measurements The following table displays assets and liabilities that were measured at fair value on a non-recurring basis after initial recognition; Year ended December 31, 2015 Description Carrying Quoted Prices in Significant Significant Total Losses Property, plant and equipment – identified untransferrable relocation assets $ 1,622,588 $ $ - $ $ 1,622,588 During the year ended December 31, 2014, long-lived assets held and used with a carrying amount of $ 308 150 158 143 Based on the nature of the property being assessed, buildings and land use rights, the fair value was estimated using direct comparison method under the market approach. The direct comparison method is a set of procedures in which a value indication is derived by comparing the real estate being appraised to similar real estate that have been sold recently. Then applying appropriate units of comparison and making adjustments to the sale prices of the comparable based on the elements of comparison such as differences in location, size, decoration and year of completion, etc. to derive at the fair value of the real estate. Along with the complicated and comprehensive relocation preparation for the remaining assets in Chongqing, the Company together with a professional transport company identified the assets with a carrying amount of $ 1.6 zero 1.6 |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2015 | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION [Abstract] | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 13. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION (a) China Contribution Plan Full time employees of the Group in the PRC participate in a government-mandated, multi-employer, defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees' salaries. Contributions to defined contribution plans are expensed as incurred. During the years ended December 31, 2013, 2014 and 2015, the Group recognized $ 3,142,213 3,130,308 4,087,334 (b) Statutory Reserves and Restricted Assets Foreign invested enterprises in PRC are required under PRC laws to distribute its after-tax profits of the current year and draw 10 percent of the profits as the company's statutory common reserve. The company may stop drawing the profits if the aggregate balance of the common reserves has already accounted for over The common reserves shall be used for making up losses, expanding the production and business scale or increasing the registered capital of the company. the Group's aggregate balance of the statutory common reserves was 16,803,191 20,190,729 17,720,748 In accordance with relevant PRC laws and regulations, the Group's PRC subsidiaries are prohibited to make distribution of their registered capital and statutory reserves in the form of cash dividends, loans or advances and the relating restricted portion amounted to $ 213,794,097 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 14. INCOME TAXES Cayman Islands Tax The Company is incorporated in the Cayman Islands and is not subject to tax in this jurisdiction. In year 2015, the Company received deemed dividend distribution of $ 1.1 0.1 PRC Tax The Company's subsidiaries are registered in the PRC as foreign invested enterprises. Under the Laws of the People's Republic of China on Enterprise Income Tax (the “EIT Law”) which are effective January 1, 2008, the statutory enterprise income tax rate is 25%. Chongqing Daqo is a foreign invested enterprise located in Chongqing. In accordance with a PRC tax regulation which encourages investment in China's southwest region, Chongqing Daqo is entitled to a preferential tax rate of 15% from its establishment through 2012. On November 19, 2012, Chongqing Daqo obtained a High and New Technology Enterprise (“HTNE”) On November 10, 2015, Chongqing Daqo renewed the HTNE certificate for a valid period of 3 years till 2018. Daqo New Material, which was deconsolidated on December 31, 2013, is a domestic enterprise registered in Chongqing and is subject to an income tax rate of 25% for each of the two years ended December 31, 2013. Xinjiang Daqo is a foreign-invested enterprise established on February, 2012 located in Shihezi Economic Development Area in Xinjiang Autonomous Region. The entity was subject to an income tax rate of 25% for the years ended December 31, 2012 and 2013. On November 25, 2014, Xin Jiang Daqo was entitled to a preferential tax rate of 15%, because of the obtainment of a High and New Technology Enterprise (“HTNE”) United States Daqo America was liquidated in 2013 and it was subject to United States income tax at a combined federal and state tax rate of 40% in 2013. Under the current EIT Law and implementation regulations issued by the PRC State Council, an income tax rate of 10% is applicable to interest and dividends payable to investors that are “non-resident enterprises”, which do not have an establishment or place of business in the PRC, or which have such establishment or place of business but the relevant income is not effectively connected with the establishment or place of business, to the extent such interest or dividends have their sources within the PRC. The Company's PRC subsidiaries did not have retained earnings as of December 31, 2015, therefore, no provision for PRC dividend withholding tax has been provided thereon. The Group made its assessment of the level of authority for each tax position (including the potential application of interests and penalties) based on the tax positions' technical merits, and measured the unrecognized benefits associated with the tax positions. The Group did not have any unrecognized tax benefits as of December 31, 2014 and 2015. The Group does not anticipate that unrecognized tax benefits will significantly increase or decrease within the next twelve months. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. From inception to 2014, the Group's PRC subsidiaries are subject to examination of the PRC tax authorities. The Group classifies interest and penalties associated with taxes as income tax expense. Such charges were immaterial in the years ended December 31, 2013, 2014 and 2015. Income tax expenses comprise: Year ended December 31, 2013 2014 2015 Current Tax (Benefit) Expenses $ (162,621 ) $ — $ 1,786,092 Deferred Tax Expenses (Benefit) 1,434,386 — (648,271 ) Total $ 1,271,765 $ — $ 1,137,821 The principal components of deferred income tax assets and liabilities are as follows: December 31, 2014 2015 Net operating loss carried forward $ 27,349,606 $ 22,549,975 Inventory write-down 26,141 - Bad debt provision 478,367 163,120 Government grants related to assets 498,582 166,922 Long-lived asset impairment&depreciation 21,009,037 19,624,021 Others 748,018 485,776 Sub-total 50,109,751 42,989,814 Valuation Allowance (50,109,751 ) (42,362,849 ) Total $ — $ 626,965 Deferred tax assets are analyzed as: Current $ — $ — Non-current — 626,965 The changes of valuation allowance are as follows: Year ended December 31, 2013 2014 2015 Beginning balance $ 37,682,733 $ 56,633,867 $ 50,109,751 Additions (Reversal) 56,697,096 (5,168,917 ) (5,708,268 ) Deconsolidation (39,357,744 ) — — Foreign exchange effect 1,611,782 (1,355,199 ) (2,038,634 ) Ending Balance $ 56,633,867 $ 50,109,751 $ 42,362,849 The Group uses the asset and liability method to record related deferred tax assets and liabilities. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of operating losses, forecasts of future profitability, the duration of statutory carry forward periods, the Group's experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more likely than not threshold. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Group considers positive and negative evidences to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgement and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided a full valuation allowance for the deferred tax assets relating to Chongqing Daqo as of December 31, 2014 and December 2015 in the amount of $50,109,751 and $42,362,849, respectively, as management is not able to conclude that the future realization of those net operating loss carry forwards and other deferred tax assets are more likely than not. As of December 31, 2015, the Group has a total operating loss carry forwards which is entirely relating to Chongqing Daqo, of $ 90.2 The effective income tax rate of the Group is different from the expected PRC statutory rate as a result of the following items: Year ended December 31, 2013 2014 2015 PRC Enterprise Income Tax 25 % 25 % 25 % Preferential income tax rate of a subsidiary (2 )% (9 )% (8 )% Effect of different reversal rate 3 % 1 % - % Additional tax deductions (1 )% (8 )% (12 )% Different tax rate in other jurisdictions — % 6 % 8 % Changes in valuation allowance (26 )% — % (3 )% Tax credits — % (15 )% (3 )% Withhold tax — % — % 1 % Effective tax rate (1 )% — % 7 % Xinjiang Daqo and Chongqing Daqo enjoy the preferential tax rate of 15%, which may be extended if the requirements of High and New Technology Enterprise are satisfied. The impact of the preferential tax rates decreased income taxes by $ nil 3.0 1.2 nil 0.01 0.01 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
SHARE BASED COMPENSATION [Abstract] | |
SHARE BASED COMPENSATION | 15. SHARE BASED COMPENSATION In December 2014, The Company's shareholders adopted the 2014 share incentive plan. The Company's shareholders have authorized the issuance of up to 21,000,000 During the years ended December 31, 2013, 2014 and 2015, the Company granted 140,000, 6,274,166 8,134,375 On January 12, 2015, the Company granted options to acquire 600,000 25 25 50 twenty-four two 0.87 On January 12, 2015, the Company granted options to acquire 6,534,375 25 25 50 thirty-six three 0.87 On January 12, 2015, the Company modified the exercise price to $0.87 for a total number of 6,274,166 previously granted options, in order to provide appropriate incentives to the relevant employees and executive officers of the Group. The fair value of the options under revised terms was $ 0.55 0.52 241,557 60,107 181,470 2.91 On July 06, 2015, the Company granted options to acquire 1,000,000 25 25 50 twenty-four three 0.84 On September 09, 2015, the Company modified the exercise price for a total number of 12,569,166 0.59 0.38 0.35 0.38 0.37 0.40 282,581 123,322 159,259 2.85 The Company utilized the Binomial option pricing model to evaluate the fair value of the stock options with reference to the closing price of the Company on the measurement dates. The following assumptions were used in the Binomial option pricing model: Year Ended December 31, 2013 Options granted Average risk-free rate of return Exercise multiple Volatility rate Dividend yield Post- vesting forfeiture rate April 3, 2013 2.29 2.8 51.78 0 3 Year Ended December 31, 2014 Options Average Exercise Volatility Dividend Post- January 28, 2014 2.77 3.0 - 3.5 93.0 0 3 - 9.5 Year Ended December 31, 2015 Options Average Exercise Volatility Dividend Post- January 12, 2015 2.82 1.8 3 93.0 % 0 5 8 July 06, 2015 3.20 3 91.0 0 5 September 09, 2015 2.94 3.08 1.8 3 91.0 92.0 0 5 8 The risk-free rate of return is based on the yield curve of China USD sovereign bond commensurate with the same maturity at the respective grant dates. The exercise multiple is estimated by reference to the proprietary research and empirical studies. The expected volatility is based on the average of historical daily annualized share price volatility of 6 comparable companies over a normalized period that commensurate with the option life of 10 years. The post-vesting forfeiture rate is based on the historical data and management's best Estimation. A summary of the aggregate option activity and information regarding options outstanding as of December 31, 2015 is as follows: Number of Weighted Weighted Aggregate Options outstanding on January 1, 2015 12,375,416 0.87 Granted 8,134,375 0.59 Forfeited (1,307,743 ) 0.56 Expired (557,882 ) 0.59 Exercised (1,115,625 ) 0.25 Options outstanding on December 31, 2015 17,528,541 0.50 7.48 2,973,866 Options vested or expected to vest on December 31, 2015 12,978,233 0.40 6.12 3,499,985 Options exercisable on December 31, 2015 9,965,138 0.42 6.38 2,434,628 The share-based compensation charge related to the share options of approximately$ 1,881,401, 1,792,819 3,687,951 The weighted average grant date fair value of options granted during the year ended December 31, 2013, 2014 and 2015 was $ 0.11, 0.98 0.59 As of December 31, 2015, there was $ 5,279,522 2.70 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 16. RELATED PARTY TRANSACTIONS AND BALANCES (1) The relationships between the Group and related party are as follows: Name of the related party Relationship Daqo Group Daqo Group and the Group are controlled by same group of shareholders. Zhenjiang Daqo Solar Co. Ltd .(“Zhenjiang Daqo) An affiliated company which is 100 Daqo Solar Co. Ltd (“Daqo Solar”) An affiliated company which is 100 Nanjing Daqo New Energy Co.,Ltd .(“Nanjing Daqo”) An affiliated company which was 100 100 Daqo Xinjiang Investment Co., Ltd. ("Xinjiang Daqo Investment") An affiliated company which is 100 Daqo New Material Co., Ltd. ("Daqo New Material") An affiliated company which is 100 % held by Daqo Chongqing Daqo Tailai Electric Co., Ltd. (“Chongqing Daqo Tailai”) An affiliated company which is 100 Nanjing Daqo Transformer Systems Co., Ltd. (“Nanjing Daqo Transformer”) An affiliated company which is 100 Jiangsu Daqo Changjiang Electric Co., Ltd. (“Jiangsu Daqo”) An affiliated company which is 100 Nanjing Daqo Electric Co., Ltd. (“Nanjing Daqo Electric”) An affiliated company which is 100 Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd. (“Zhenjiang Moeller”) An affiliated company which is 100 Nanjing Intelligent Apparatus Co., Ltd. (“Intelligent Apparatus”) An affiliated company which is 100 Nanjing Intelligent Software Co., Ltd. (“Intelligent Software”) An affiliated company which is 100 Daqo Investment Co., Ltd. (“Daqo Investment”) An affiliated company which is 100 Shanghai Sailfar Electric Technology Co., Ltd. (“Daqo Sailfar”) Jiangsu Daquan High Voltage Switchgear Co.,Ltd .( “Jiangsu Daquan High Voltage”) Jiangsu Daqo Kai-fan Electric Co.,Ltd. ( “Jiangsu Daqo Kai-fan”) Zhenjiang Electric Equipment Co.,Ltd. ( “Zhenjiang Electric”) An affiliated company which is 100 An affiliated company which is 75 An affiliated company which is 100 An affiliated company which is 100 (2) Related party balances: The balances due from related parties mainly included the amount due from Zhenjiang Daqo for sales of wafer and polysilicon and Daqo Group for the proceeds from deposition consideration of Nanjing Daqo. Such balances are unsecured, interest-free, and are payable on demand. The balances are as follows: December 31, 2014 2015 Amounts due from related parties Zhenjiang Daqo $ 4,551,846 $ 229,989 Daqo Group 5,110,085 - Others 325,037 54,644 Total $ 9,986,968 $ 284,633 Interest free loans due to related parties received primarily for working capital purposes from Daqo Solar, Xinjiang Daqo Investment and Daqo New Material, wholly-owned subsidiaries of Daqo Group. The balances are payable on demand and are as follows: December 31, 2014 2015 Amounts due to related parties Daqo Solar $ 54,275,617 $ 37,390,575 Xinjiang Daqo investment 23,104,709 3,146,054 Daqo New Material 4,950,746 5,563,165 Chongqing Daqo Tailai 1,755,326 144,102 Nanjing Daqo Transformer 1,595,659 - Daqo Group 1,339,128 33,758 Jiangsu Daqo 1,200,018 - Nanjing Daqo Electric 742,747 - Others* 734,201 118,873 Total $ 89,698,151 $ 46,396,527 * The remaining balance of amounts due to related parties of $118,873 as of December 31, 2015 was comprised of Zhenjiang Moeller and Daqo Sailfar in the amount of $ 107,771 11,102 The transactions with Daqo Group and its subsidiaries were as follows: Transaction Year Ended December 31, Name of Related parties Nature 2013 2014 2015 Daqo Group Purchase-Fixed asset — 486,948 - Proceeds from interest free loans 813,105 10,821,462 15,043,550 Repayment of interest free loans 813,105 8,115,813 20,217,257 Zhenjiang Daqo Sales 13,471,866 9,554,320 11,111,239 Daqo Solar Sales — 9,595,680 783,705 Proceeds from interest free loans 76,881,392 157,241,390 127,060,826 Repayment of interest free loans 28,379,678 166,231,092 151,990,672 Nanjing Daqo Sales — 112 - Proceeds from interest free loans — 973,898 13,456,861 Repayment of interest free loans — 2,921,693 13,456,861 Xinjiang Daqo Investment Proceeds from interest free loans 58,389,643 98,367,234 72,946,700 Repayment of interest free loans 40,193,785 93,219,846 73,252,506 Daqo New Material Proceeds from interest free loans — 7,729,501 11,082,241 Repayment of interest free loans — 4,600,117 11,285,114 Rental expense — 1,071,287 1,050,661 Chongqing Purchase-Fixed asset - 2,724,790 375,528 Purchase-Raw material - - 9,938 Income from disposal of fixed assets - - 6,458 Proceeds from interest free loans - - 6,367,640 Repayment of interest free loans - - 6,367,640 Others subsidiaries under Daqo Group Proceeds from interest free loans — 636 - Repayment of interest free loans - - 5,296 Purchase-Fixed asset* 157,742 3,989,686 3,488,330 Purchase-Raw material — — 22,817 Total Sales $ 13,471,866 $ 19,150,112 $ 11,894,944 Income from disposal of fixed assets $ — $ — $ 6,458 Purchase-Fixed asset $ 157,742 $ 7,201,424 $ 3,863,858 Purchase-Raw material $ — $ — $ 32,755 Rental expense $ — $ 1,071,287 $ 1,050,661 Proceeds from interest free loans $ 136,084,140 $ 275,134,122 $ 245,957,818 Repayment of interest free loans $ 69,386,568 $ 275,088,560 $ 276,575,346 * The purchase of fixed assets of $ 3,488,330 93,795 448,184 2,005,617 11,423 483,764 445,547 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE The calculation of earnings per share is as follows: Year ended December 31, 2013 2014 2015 Numerator used in basic and diluted earnings per share: Net (loss) income attributable to Daqo New Energy Corp. ordinary shareholders—basic and diluted $ (70,943,484 ) $ 16,649,176 $ 12,956,889 Denominator used in basic and diluted earnings per share: Weighted average number of ordinary shares outstanding used in computing earnings per share—basic 173,068,420 206,349,976 258,015,851 Plus: share options — 5,003,667 3,396,082 Weighted average number of ordinary shares outstanding used in computing earnings per share—diluted 173,068,420 211,353,643 261,411,933 NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Basic $ (0.41 ) $ 0.08 $ 0.05 NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Diluted $ (0.41 ) 0.08 0.05 Outstanding employee options totaling of 6,371,250 6,154,166 12,563,541 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Capital commitments As of December 31, 2015, commitments outstanding for the purchases of property, plant and equipment approximated $ 15.5 Lease commitments The operating lease commitments as of December 31, 2015 were principally for the housing rental from Daqo New Material. The lease expense was 164,811 1,071,287 1,050,661 Future minimum lease payments are as follows: Year ending December 31 2016 (Note 19) $ 1,050,661 Total $ 1,050,661 Contingencies The Group was the defendant in arbitration involving a supplier claiming approximately $ 0.8 0.4 0.4 no |
VARIABLE INTEREST ENTITY
VARIABLE INTEREST ENTITY | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITY [Abstract] | |
VARIABLE INTEREST ENTITY | 19 The equity interests in Daqo New Material, the VIE, are funded by Daqo Group. Daqo New Material was structured to acquire land use rights and to erect certain facilities for the future use of the Group. The lease agreement with the VIE was structured such that Chongqing Daqo protect Daqo Group from potential losses from Daqo New Material. As a result of this agreement, Chongqing Daqo was the primary beneficiary of Daqo New Material. Lease income and expenses and associated receivables and payables were eliminated upon consolidation as intercompany transactions. Net income of the VIE was reflected as an adjustment to noncontrolling interest. The Group relied on the lease agreements with Daqo New Material for material property, plant and equipment necessary for production. If Daqo New Material fails to perform or terminates the lease agreement for any reason, including, for example, due to its breach of the agreement or the unavailability of any required governmental approvals, or if it refuses to extend or renew the lease agreement when the agreement expires, and the Group cannot find an immediately available alternative source for leasing similar property, plant and equipment, then the Group's ability to carry on the operations will be impaired. If Daqo New Material fails to perform its obligations, the Group may need to initiate legal procedures to enforce the agreement. On December 31, 2013, Chongqing Daqo and Daqo New Material terminated this lease agreement. As a result of the change, Chongqing Daqo no longer has the power to direct the activities that most significantly impact Daqo New Material's operations, and as such Chongqing Daqo ceased to be the primary beneficiary of Daqo New Material and deconsolidated the entity on the date the lease arrangement was terminated, December 30, 2013. No gain or loss was recorded on termination of VIE arrangement. After deconsolidation, Daqo New Material remains a related party of the Group. On January 1, 2014, Chongqing Daqo signed a new operating lease agreement with Daqo New Material with respect to certain limited facilities, including the dining hall, office space and portions of the employee dormitory which it uses for its wafer business located nearby. The term of the lease is three years and the annual rental for these facilities is approximately $ 1 Daqo New Material leased all of its assets for use in the Group's operations before December 31, 2013. The revenues, operating costs and expenses and net income of the VIE are as follows: Year ended December 31, 2013 2014 2015 Revenues $ * $ * $ * Operating costs and expenses $ 150,147,024 $ * $ * Net income (loss) $ (150,147,024 ) $ * $ * * The lease term was amended at the beginning of 2013 and reduced the rent to $ 0 per month and was later terminated on December 30, 2013. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 20. SEGMENT INFORMATION The Group's chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. Following the further expansion of module business and entering into the wafer business in 2011 the Group operated and viewed its performance in three segments. However, on September 28, 2012, the module business was disposed. Therefore, only two segments remained in 2013, 2014 and 2015. Furthermore, the Group's chief operating decision maker is not provided with asset information by segment. As such, no asset information by segment is presented. The following tables summarized the Group's revenue and cost generated from different revenue streams. Substantially all of its revenues are derived in the PRC. The Group's long lived assets and operations are substantially all located in the PRC. The following table summarizes the Group's revenue by segment: Year ended December 31, 2013 Polysilicon Wafer Elimination Total Revenue - External $ 76,721,105 $ 32,278,700 $ - $ 108,999,805 Revenue - Intersegment 13,195,838 - (13,195,838 ) - Total revenue 89,916,943 32,278,700 (13,195,838 ) 108,999,805 Total Cost of revenue 98,684,325 49,614,921 (13,195,838 ) 135,103,408 Gross loss $ (8,767,382 ) $ (17,336,221 ) $ - $ (26,103,603 ) Year ended December 31, 2014 Polysilicon Wafer Elimination Total Revenue - External $ 127,692,325 54,879,527 - 182,571,852 Revenue - Intersegment 29,424,883 - (29,424,883 ) - Total revenue 157,117,208 54,879,527 (29,424,883 ) 182,571,852 Total Cost of revenue 119,703,550 47,861,811 (28,256,850 ) 139,308,511 Gross Profit $ 37,413,658 7,017,716 (1,168,033 ) 43,263,341 Year ended December 31, 2015 Polysilicon Wafer Elimination Total Revenue – External $ 125,916,457 56,124,511 - 182,040,968 Revenue - Intersegment 23,485,364 - (23,485,364 ) - Total Revenue 149,401,821 56,124,511 (23,485,364 ) 182,040,968 Total Cost of revenue 121,193,840 46,763,308 (23,466,065 ) 144,491,083 Gross Profit $ 28,207,981 9,361,203 (19,299 ) 37,549,885 The following customers accounted for 10% or more of revenues: Year ended December 31, 2013 2014 2015 Customer B $ 19,644,488 $ 23,882,302 $ 18,125,773 Customer C $ * $ 18,210,196 $ 19,595,911 Customer D $ 13,471,873 $ * $ * Customer J $ * $ * $ 35,094,472 Customer K $ * $ * $ 20,465,558 * Represents less than 10% |
FINANCIAL STATEMENT SCHEDULE I
FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL STATEMENT SCHEDULE I [Abstract] | |
FINANCIAL STATEMENT SCHEDULE I | FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEET DECEMBER 31, 2013 AND 2014 (In U.S. dollars, except share data) December 31, 2014 2015 ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,493,150 $ 2,563,083 Prepaid expenses and other current assets 204,682 193,583 Amount due from a related party 5,110,085 - Total current assets 9,807,917 2,756,666 Investments in subsidiaries 197,571,399 238,112,877 TOTAL ASSETS $ 207,379,316 $ 240,869,543 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accrued expenses and other current liabilities $ 324,720 $ 406,088 Amount due to a related party 286,526 - Income tax payable - 108,992 Total current liabilities 611,246 515,080 EQUITY Ordinary shares ($ 0.0001 500,000,000 240,714,103 279,214,103 223,577,853 260,836,578 22,358 26,320 Additional paid in capital 203,125,494 236,358,070 Retained accumulated losses (16,018,293 ) (3,061,404 ) Accumulated other comprehensive income 20,037,183 8,780,313 Treasury stock (398,672 ) (1,748,836 ) Total shareholders' equity 206,768,070 240,354,463 TOTAL LIABILITIES AND EQUITY $ 207,379,316 $ 240,869,543 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2012, 2013 AND 2014 (In U.S. dollars) Year ended December 31, 2013 2014 2015 OPERATING EXPENSES General and administrative $ (2,979,454 ) $ (2,738,085 ) $ (4,142,634 ) Research and development (76,646 ) (12,310 ) - Total operating expenses (3,056,100 ) (2,750,395 ) (4,142,634 ) LOSS FROM OPERATION (3,056,100 ) (2,750,395 ) (4,142,634 ) Interest income 3,130 8,144 1,641 Exchange gain - - 118,679 Income tax expense - - (108,992 ) NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES (3,052,970 ) (2,742,251 ) (4,131,306 ) Equity in (losses) earnings of subsidiaries (67,890,514 ) 19,391,427 17,088,195 Net (loss) income attributable to Daqo New Energy Corporation ordinary shareholders $ (70,943,484 ) $ 16,649,176 $ 12,956,889 Other comprehensive (loss) income: Foreign currency translation adjustments 4,148,190 (3,662,013 ) (11,256,870 ) Total other comprehensive income (loss) 4,148,190 (3,662,013 ) (11,256,870 ) Comprehensive (loss) income $ (66,795,294 ) $ 12,987,163 $ 1,700,019 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015 (In U.S. dollars, except share data) Ordinary shares Treasury Stock Additional Retained Accumulated Total Number $ Balance at January 1, 2013 172,877,433 17,288 (494,928 ) 144,755,902 38,276,015 19,551,006 202,105,283 Net loss (70,943,484 ) (70,943,484 ) Other comprehensive income 4,148,190 4,148,190 Share-based compensation 1,881,401 1,881,401 Option Exercised 550,420 55 96,256 38,860 135,171 Deconsolidation of VIE Balance at December 31, 2013 173,427,853 $ 17,343 $ (398,672 ) $ 146,676,163 $ (32,667,469 ) $ 23,699,196 $ 137,326,561 Net income 16,649,176 16,649,176 Other comprehensive income (3,662,013 ) (3,662,013 ) Share-based compensation 1,792,819 1,792,819 Option Exercised 150,000 15 37,065 37,080 Follow-on equity offering, net of issuance cost of $ 3,375,553 50,000,000 5,000 54,619,447 54,624,447 Balance at December 31, 2014 223,577,853 22,358 (398,672 ) 203,125,494 (16,018,293 ) 20,037,183 206,768,070 Net income 12,956,889 12,956,889 Other comprehensive income (11,256,870 (11,256,870 ) Share-based compensation 3,687,951 3,687,951 Option Exercised 1,115,625 112 275,671 275,783 Follow-on equity offering, net of issuance costs of $ 2,033,041 38,500,000 3,850 27,993,109 27,996,959 Repurchase of Stock (2,356,900 (1,350,164 (1,350,164 Capital injection from noncontrolling shareholders 1,275,845 1,275,845 Balance at December 31, 2015 260,836,578 26,320 (1,748,836 ) 236,358,070 3,061,404 8,780,313 240,354,463 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015 (In U.S. dollars) Year ended December 31, 2013 2014 2015 OPERATING ACTIVITIES Net (loss) income $ (70,943,484 ) $ 16,649,176 $ 12,956,888 Share of results of subsidiaries 67,890,514 (19,391,427 ) (17,088,194 ) Share-based compensation 1,881,401 1,792,819 3,687,951 Adjustments to reconcile net income to net cash used in operating activities: Prepaid expenses and other current assets 344,717 (27,195 ) 11,099 Changes in other current liabilities 137,390 (26,901 ) (96,166 ) Amount due to a related party — 286,526 (286,526 ) Income tax payable - - 108,992 Net cash used in operating activities (689,462 ) (717,002 ) (705,956 ) INVESTING ACTIVITIES Capital contributed to subsidiaries — (54,638,421 ) (33,256,774 ) Cash collected from subsidiaries when liquidation 71,503 — - Disposition of minority interest in subsidiary — — 5,110,085 Net cash used in investing activities 71,503 (54,638,421 ) (28,146,689 ) FINANCING ACTIVITIES Repurchase of ordinary shares — — (1,350,164 Proceeds from follow-on equity offering — 58,000,000 30,030,000 Insurance cost for follow-on equity offering — (3,375,553 ) (2,033,041 ) Proceeds from options exercised 135,171 37,080 275,783 Net cash provided by financing activities 135,171 54,661,527 26,922,578 NET DECREASE IN CASH AND CASH EQUIVALENTS (482,788 ) (693,896 ) (1,930,067 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,669,834 5,187,046 4,493,150 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,187,046 $ 4,493,150 $ 2,563,083 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. Notes to Schedule I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information of Daqo New Energy Corp has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividend was paid by the Company's subsidiaries to their parent company in 2015. 4. As of December 31, 2015, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statement, if any. |
SUMMARY OF PRINCIPAL ACCOUNTI30
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group's ability to generate cash flows from operations, and the Group's ability to arrange adequate financing arrangements, including the renewal or rollover of its bank borrowings, to support its working capital requirements. As of December 31, 2015, the Company's current liabilities exceed its current assets by $ 186.6 14.5 123.9 15.5 However, the Group regards the going concern assumption as appropriate considering the following plans and actions: 1. The Group generated net income and positive cash flow from operations for two 2. The Group has performed a review of its cash flow forecasts for the twelve month period ending December 31, 2016, and believes that its operating cash flow will be positive during the twelve month period ending December 31, 2016. 3. The Group has or is in the process of taking a number of cost reduction initiatives, including the new hydrochlorination system, technology improvement and polysilicon capacity expansion in Xinjiang. 4. On February 22, 2016, the Group obtained a letter of financial support from Daqo Group which has committed to provide sufficient financial support to the Group to ensure the Group has the funds required to satisfy its obligations as they come due in the normal course during the twelve months ending December 31, 2016. Further, the support letter provides that Daqo Group will not require the Group to pay the amount owed to the Daqo Group and subsidiaries of Daqo Group before January 1, 2017, which at December 31, 2015 totaled $ 46.4 5. As of December 31, 2015, the Group has available bank accepted note facilities of $ 22.6 Based on the above factors, management believes that adequate sources of liquidity will exist to fund the Group's working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due. |
Basis of consolidations | (b) Basis of consolidations The consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated on consolidation. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Management has made significant estimates in a variety of areas, including but not limited to allowance for doubtful accounts, useful lives and residual values of long-lived assets, impairment for long lived assets, valuation allowances for deferred tax assets, interest capitalization and certain assumptions used in the computation of share-based compensation and related forfeiture rates. The Group revised the estimates of expected useful lives of property, plant and equipment on January 1, 2014, please refers to Note 2 (i) for details. |
Concentration of credit risk | (d) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and notes receivable. The Group places its cash and cash equivalents in various financial institutions in the PRC. The Group believes that no significant credit risk exists as these banks are principally government-owned financial institutions with high credit ratings. Accounts receivable represent those receivables derived in the ordinary course of business. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts mainly based on aging of the receivables and other factors surrounding the credit risk of specific customers. Allowance for doubtful accounts is $ 3,189,110 1,087,465 The following customers accounted for 10% or more of accounts receivable: Accounts December 31, receivable 2014 2015 Customer C $ 2,213,393 $ * Customer J $ 1,578,947 $ 2,996,042 Customer M $ 1,330,145 $ * Customer H $ 1,071,415 $ 6,354,510 Customer N $ * $ 2,315,035 Customer B $ * $ 2,299,732 * Represents less than 10% From time to time, certain accounts receivable balances are settled in the form of notes receivable. As of December 31, 2014 and 2015, notes receivable represents bank acceptance drafts that are non-interest bearing and due within 6 months. Total sales to the Group's largest customers whose sales constitute over 10% of revenue accounted for approximately 30 23 51 Furthermore, all of the Group's long-term bank borrowings are guaranteed by Daqo Group, our related party, who has also committed to provide financial support to meet the Group's short term bank borrowings obligations, other liabilities and commitments as they become due (see Note 2(a)). The Group's access to credit is significantly reliant on Daqo Group's ability and willingness to continue to provide sufficient financial support |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased. |
Restricted cash | (f) Restricted cash Restricted cash of $ 22,169,236 19,062,714 |
Allowance for Doubtful Accounts | (g) Allowance for Doubtful Accounts The Group determines its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of trade receivables. In determining its allowance for doubtful accounts, the Group also considers other economic factors, such as aging trends. The Group believes that its process of specific review of customers combined with overall analytical review provides an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts are recorded as general and administrate expense in the consolidated statements of operations. |
Inventories | (h) Inventories Inventories are stated at lower of cost or market. Costs are determined using weighted average costs. Costs comprise direct materials, direct labor and overhead costs incurred in bringing the inventories to their present location and condition. The Group writes down the cost of excess inventories to the estimated market value based on historical and forecasted demand. Estimated market value is measured as the estimated selling price of each class of inventory in the ordinary course of business less estimated costs of completion and disposal. The charges to inventory for the years ended December 31, 2013, 2014 and 2015 were $ 29,905,734 175,568 62,422 The Group has outsourced portions of its manufacturing process, including cutting ingots into wafers, and converting wafers into solar cells, to various third-party manufacturers. These outsourcing arrangements may or may not include transfer of title of the raw material inventory (ingots, wafers or cells) to the third-party manufacturers. For those outsourcing arrangements in which title does not transfer, the Group maintains the inventory in the balance sheet as raw materials inventory while it is in physical possession of the third-party manufacturers. Upon receipt of the processed inventory from the third-party manufacturers, it is reclassified to work-in-progress inventory with the processing fee capitalized as cost of inventory. For those outsourcing arrangements in which title (including risk of loss) does transfer to the third-party manufacturer, the Group is contractually obligated to repurchase the processed inventory. To accomplish this, it enters into raw material sales agreements and processed inventory purchase agreements simultaneously with the third-party manufacturer. In such instances, where they are, in substance tolling arrangements, the Group retains the inventory in the consolidated balance sheets while it is in the physical possession of the third-party manufacturer. The cash received from the third-party manufacturer is recorded as a current liability on the balance sheet rather than revenue or deferred revenue. Upon receipt of the processed inventory, it is reclassified from raw materials to work-in-progress inventory and the processing fee paid to the third-party manufacturer is added to inventory cost. Cash payments for outsourcing arrangements which require prepayment for repurchase of the processed inventory are classified as current assets on the balance sheet. If there is no legal right of offset established by these arrangements, the associated assets and liabilities are presented separately on the balance sheet until the processed inventory is returned to the Group. |
Property, plant and equipment | (i) Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the following estimated useful lives: Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6 The Group reassesses the reasonableness of the estimates of useful lives and residual values of long-lived assets when events or changes in circumstances indicate that the useful lives and residual values of a major asset or a major category of assets may not be reasonable. Factors that the Group considers in deciding when to perform an analysis of useful lives and residual values of long-lived assets include, but are not limited to, significant variance of a business or product line in relation to expectations, significant deviation from industry or economic trends, and significant changes or planned changes in the use of the assets. The analysis will be performed at the asset or asset category with the reference to the assets' conditions, current technologies, market, and future plan of usage and the useful lives of major competitors. Costs incurred on construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. In 2013, the Company decided to relocate a majority of Chongqing's polysilicon assets to Xinjiang. As part of the decision to make significant investment to relocate the assets, the Company revisited the expectation as to the useful lives of these assets. Based on this review, the Company determined that the condition of its major assets, having now been in operations for a meaningful percentage of the original estimated lives, were in better condition, than the original useful life expectation had predicted, accordingly, the Company with the assistant of an independent valuation firm reassessed the remaining economic useful life of the polysilicon assets in both Chongqing and Xinjiang. The analysis was completed in the first quarter of 2014 10 15 20 30 18.7 18.7 18.7 0.09 18.7 0.07 Interest expense incurred for construction of property, plant, and equipment is capitalized as part of the cost of such assets. The Group capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. Interest expense capitalized for the years ended December 31, 2013, 2014 and 2015 was $ nil 1,960,259 2,825,879 |
Prepaid land use rights | (j) Prepaid land use rights All land in the PRC is owned by the PRC government. The PRC government, according to PRC law, may sell the land use rights for a specified period of time. The Group's land use rights in the PRC are stated at cost less recognized lease expenses. Lease expense is recognized over the term of the agreement on a straight-line basis. The Group recorded lease expenses of $ 781,706 628,052 595,716 |
Impairment of long-lived assets | (k) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors that the Group considers in deciding when to perform an impairment review include, but are not limited to significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planed changes in the use of the assets. An impairment analysis is performed at the lowest level of identifiable independent cash flows for an asset or asset group. The Group makes subjective judgments in determining the independent cash flows that can be related to a specific asset group based on the asset usage model and manufacturing capabilities. The Group measures the recoverability of assets that will continue to be used in the operations by comparing the carrying value of the asset group to the estimate of the related total future undiscounted cash flows. If an asset group's carrying value is not recoverable through the related undiscounted cash flows, the impairment loss is measured by comparing the difference between the asset group's carrying value and its fair value. The Group determines the fair value of an asset or asset group utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. During each of the three year ended December 31, 2013, 2014 and 2015, the impairment changes were $ 158,424,827 nil 1,622,588 |
Revenue recognition | (l) Revenue recognition Product sales The Group recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of the sales contracts transfer title and risk of loss to customers upon receipt. Sales agreements for polysilicon and wafers typically do not contain product warranties except for return and replacement of defective products within a period generally ranging from 3 to 30 days from delivery. Sales agreements typically do not contain post-shipment obligations or other return or credit provisions. Customers frequently pay for products prior to the delivery of the products. Advance payments are recorded as advances from customers. Service revenue The Group also provides OEM services to customers, such as the provision of service to process polysilicon into ingots and wafers. The Group recognizes revenue when there is persuasive evidence of an arrangement, the service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured |
Cost of revenues | (m) Cost of revenues Cost of revenues consists of production related costs including costs of silicon raw materials, electricity and other utilities, consumables, direct labor, overhead costs, depreciation of property, plant and equipment, and manufacturing waste treatment processing fees. Cost of revenues does not include shipping and handling expenses, therefore the Group's cost of revenues may not be comparable to other companies which include such expense in their costs of revenues. |
Shipping and handling | (n) Shipping and handling Costs to ship products to customers are recorded as selling expenses in the consolidated statements of operations. Costs to ship products to customers were $ 1,901,384 2,054,786 2,708,962 |
Research and development expenses | (o) Research and development expenses Research and development expenses include materials and utilities consumed in research and development activities, payroll and related costs and depreciation of property and equipment associated with the research and development activities, which are expensed when incurred. In the years ended December 31, 2014 and 2015, the Group incurred additional research and development expenses for its Xinjiang Phase II polysilicon facilities to achieve the targets for quality, capacity and cost during the pilot production period. |
Government subsidies | (p) Government subsidies The Group receives unrestricted cash subsidies from local government agencies. The government agencies use their discretion to determine the amount of the subsidies with reference to land use right fees, value-added tax and income taxes paid, bank loan interest expenses paid or electricity consumed by the Group, however, these subsidies do not represent tax refunds or reimbursements of expenditures. The subsidies are unrestricted as to use and can be utilized by the Group in any manner it deems appropriate. The Group has utilized, and expects to continue to utilize, these subsidies to fund general operating expenses. The Group records unrestricted cash government subsidies as other operating income in the consolidated statements of operations. Unrestricted cash government subsidies received for the years ended December 31, 2013, 2014 and 2015 were $ 5,249,788 926,173 3,578,865 1,172,160 113,735 690,889 |
Income taxes | (q) Income taxes Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amount in the consolidated financial statements, net operating loss carry-forwards and credits by applying enacted 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. |
Share-based compensation | (r) Share-based compensation The Group recognizes share-based compensation in the consolidated statement of operations based on the fair value of equity awards on the date of the grant, with compensation expense recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. The Group has made an estimate of expected forfeiture and is recognizing compensation costs only for those equity awards expected to vest. The share-based compensation expenses have been categorized as either selling, general and administrative expenses, research and development expenses or cost of sales, depending on the job functions of the grantees. For the years ended December 31, 2013, 2014 and 2015, the Group recognized share-based compensation expense of $1,881,401, $1,792,819 and $3,687,951, respectively, which was classified as follows: Year ended December 31, 2013 2014 2015 Selling, general and administrative expenses $ 1,743,768 $ 1,544,078 $ 3,323,948 Research and development expenses 60,987 12,310 — Cost of sales 76,646 236,431 364,003 Total $ 1,881,401 $ 1,792,819 $ 3,687,951 |
Earnings (loss) per share | (s) (Loss) earnings per share Basic (loss) earnings per ordinary share are computed by dividing the net (loss) net income attributable to ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the year. Diluted earnings per share is computed using the treasury stock method. |
Foreign currency translation | (t) Foreign currency translation The reporting currency of the Company is the United States dollar (“U.S. dollar”). The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in other currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange in effect at the balance sheet dates. Transactions dominated in currencies other than the U.S. dollar during the year are converted into U.S. dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in the statements of operations. The financial records of the Company's PRC subsidiaries and VIE are maintained in Chinese Renminbi (“RMB”), which is their functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated at average rate of exchange prevailing during the periods presented. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statement of changes in equity and comprehensive income. The RMB is not a freely convertible currency. The State Administration for Foreign Exchange of People's Republic of China, under the authority of the People's Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group's aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to $ 24,356,970 30,891,550 |
Comprehensive income | (u) Comprehensive income Our financial statements include the Consolidated Statements of Comprehensive (Loss) Income as required by new accounting guidance, which we retrospectively adopted during 2012. As of December 31 2014 and 2015, Accumulated Other Comprehensive Income was comprised entirely of foreign currency translation adjustments. |
Fair value of financial instruments | (v) Fair value of financial instruments The Group estimates fair value of financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The fair value measurement guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. • Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. • Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group's own assumptions about the assumptions that market participants would use to price an asset or liability. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group's evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group's consolidated assets, liabilities, shareholders' equity and net income or loss. The Group's financial instruments include cash and cash equivalents, restricted cash, accounts receivable, other current assets, amount due from related parties, accounts payable, other current liabilities, payables for purchase of property, plant and equipment, amounts due to related parties and short-term and current portion of long-term bank borrowings. The carrying amounts of these short-term financial instruments approximate their fair values due to the short-term maturity of these instruments. The fair values of the Group's plant and equipment and long-term bank borrowings as of December 31, 2014 and 2015 are estimated by discounted cash flow technique using an interest rate corresponding to debt with similar maturities and risks on the measurement date. |
Variable Interest Entity | (w) Variable Interest Entity The Group uses a qualitative approach in assessing the consolidation requirement for variable interest entities. The approach focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity's economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. In the event that the Group is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in the Group's Consolidated Financial Statements. |
Noncontrolling interest | (x) Noncontrolling interest The Group classified the ownership interest in the consolidated entity held by a party other than the Group to noncontrolling interest in the consolidated financial statements. It also reported the consolidated net income at amounts that include the amounts attributable to both the parent and the noncontrolling interest on the face of the Consolidated Statements of Operations. Xinjiang Daqo Investment's equity interests in Xinjiang Daqo are presented as a noncontrolling interest as of December 31, 2015. The non-controlling interest was $ 1,302,027 |
Treasury Stock | (y) Treasury Stock On July 9, 2012, the Company's Board of Directors authorized the Company to repurchase up to $ 5 nil nil 2,356,900 nil nil 1,350,164 |
Recent accounting pronouncements | (z) Recent accounting pronouncements On August 27, 2014, the FASB issued ASU 2015-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity's ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In May 2014, the FASB issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g. assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. 2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January 2015, the FASB issued a new pronouncement which eliminates from U.S. GAAP the concept of extraordinary items. This ASU required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Group has already considered the impact on its consolidated financial statements as of December 31, 2015. In July 2015, the FASB issued a new pronouncement Inventory (Topic 330): Simplifying the Measurement of Inventory. The current guidance requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In November, 2015, the FASB issued a new pronouncement which changes how deferred taxes are classified on organizations' balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January, 2016, the FASB issued a new pronouncement which is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance makes targeted improvements to existing U.S. GAAP by: • Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; • Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; • Eliminating the requirement for public business 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; and • Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. On March 30, 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance, which is part of the Board's simplification initiative, also contains two practical expedients under which nonpublic entities can use the simplified method to estimate the expected term of an award and make a one-time election to switch from fair value measurement to intrinsic value measurement for liability-classified awards which nonpublic entities can use the simplified method to estimate the expected term of an award and make a one-time election to switch from fair value measurement to intrinsic value measurement for liability-classified awards. In the period of adoption, entities are required to disclose: • The nature of and reason for the changes in accounting principle; and • Any cumulative effects of the changes on retained earnings or other components of equity as of the date of adoption. In addition, because the change in presentation in the statement of cash flows related to excess tax benefits can be applied either prospectively or retrospectively, entities are required to disclose either (1) “that prior periods have not been adjusted” if the change is applied prospectively or (2) the “effect of the change on prior periods retrospectively adjusted” if the change is applied retrospectively. For the change in presentation in the statement of cash flows related to statutory tax withholding requirements, entities are required to disclose the “effect of the change on prior periods retrospectively adjusted. For public business entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance. If early adoption is elected, all amendments in the ASU that apply must be adopted in the same period. In addition, if early adoption is elected in an interim period, any adjustments should be reflected as of the beginning of the annual period that includes that interim period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. |
SUMMARY OF PRINCIPAL ACCOUNTI31
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Schedule of Accounts Receivable | Accounts December 31, receivable 2014 2015 Customer C $ 2,213,393 $ * Customer J $ 1,578,947 $ 2,996,042 Customer M $ 1,330,145 $ * Customer H $ 1,071,415 $ 6,354,510 Customer N $ * $ 2,315,035 Customer B $ * $ 2,299,732 * Represents less than 10% |
Schedule of Property, Plant and Equipment, Depreciation, Estimated Lives | Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6 |
Schedule of Share-Based Compensation Expenses | Year ended December 31, 2013 2014 2015 Selling, general and administrative expenses $ 1,743,768 $ 1,544,078 $ 3,323,948 Research and development expenses 60,987 12,310 — Cost of sales 76,646 236,431 364,003 Total $ 1,881,401 $ 1,792,819 $ 3,687,951 |
ALLOWANCES FOR DOUBTFUL RECEI32
ALLOWANCES FOR DOUBTFUL RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ALLOWANCES FOR DOUBTFUL RECEIVABLES [Abstract] | |
Schedule of Allowances for Accounts Receivable | Year ended December 31, 2013 2014 2015 Beginning of the year $ 1,592,467 $ 7,160,782 $ 3,189,110 Allowances (Reversal) during the year 5,482,019 (3,823,744 ) (2,026,567 ) Foreign exchange effect 86,296 (147,928 ) (75,078 ) Closing balance $ 7,160,782 $ 3,189,110 $ 1,087,465 |
PREPAID EXPENSE AND OTHER CUR33
PREPAID EXPENSE AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PREPAID EXPENSE AND OTHER CURRENT ASSETS [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | December 31, 2014 2015 Spare parts $ 6,385,388 $ 6,052,315 Prepaid Value added tax (“VAT”) 5,857,017 5,552,772 Prepaid insurance fee 226,564 347,631 Others 366,900 282,423 Total $ 12,835,869 $ 12,235,141 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
Schedule of Inventories | December 31, 2014 2015 Raw materials $ 1,362,944 $ 2,343,104 Work-in-process 5,411,360 5,626,531 Finished goods 2,807,480 2,746,304 Total $ 9,581,784 $ 10,715,939 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Schedule of Property, Plant and Equipment, Net | December 31, 2014 2015 Cost Buildings and plant $ 233,230,935 $ 313,290,516 Machinery and equipment 351,409,724 389,373,554 Furniture, fixtures and equipment 18,469,913 22,418,768 Motor vehicles 257,408 293,331 Less: Accumulated depreciation (169,264,463 ) (188,680,279 ) Property, plant and equipment, net $ 434,103,517 $ 536,695,889 Construction in process 124,902,602 7,630,236 Total $ 559,006,119 $ 544,326,125 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
BORROWINGS [Abstract] | |
Schedule of Bank Borrowings | December 31, 2014 2015 Short-term bank borrowings $ 90,443,007 $ 72,360,730 Long-term bank borrowings, current portion 69,360,869 51,576,265 Total borrowings, current 159,803,876 123,936,995 Long-term bank borrowings, non-current portion 77,336,160 118,548,430 Total $ 237,140,036 $ 242,485,425 |
Schedule of Short-Term Borrowings | December 31, 2014 2015 Short-term bank borrowing guaranteed by Daqo Group and Mr. Guangfu Xu and Mr. Xiang Xu $ 27,389,890 $ - Short-term borrowing guaranteed by Daqo Group and related parties - 72,360,730 Short-term borrowing guaranteed by Daqo Group and a third party 11,278,190 - Short-term credit bank borrowings 51,774,927 - Total $ 90,443,007 $ 72,360,730 |
Schedule of Long-Term Bank Borrowings | December 31, 2014 2015 Borrowing from China Construction Bank $ 6,444,680 $ - Borrowing from Huaxia Bank 25,778,720 3,079,180 Borrowing from Bank of China 101,503,710 70,821,140 Borrowing from Chongqing Rural Commercial Bank 12,969,919 96,224,375 Total $ 146,697,029 $ 170,124,695 |
Schedule of Principal Maturities of Long-term Bank Borrowings | December 31, 2015 Amount 2016 $ 51,576,265 2017 53,885,650 2018 18,475,080 2019 18,475,080 2020 18,475,080 2021 9,237,540 Total $ 170,124,695 |
ACCRUED EXPENSES AND OTHER CU37
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, 2014 2015 Accrued payroll and welfare $ 3,309,850 $ 3,524,876 Accrued professional fees 576,786 776,518 Other tax payables 2,263,055 2,298,780 Interest payable 148,995 38,054 Contingent liability (Note 18) 400,000 — Others 2,256,977 1,978,603 Total $ 8,955,663 $ 8,616,831 |
ADVANCES FROM CUSTOMERS (Tables
ADVANCES FROM CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ADVANCES FROM CUSTOMERS [Abstract] | |
Schedule of Advances from Customers | December 31, 2014 2015 Customer E $ 8,041,836 $ 3,237,308 Customer F 2,405,619 1,517,402 Customer I — 1,539,590 Customer L 111 781,342 Others 262,636 1,107,734 Total $ 10,710,202 $ 8,183,376 Less: Current portion of advances from customers $ 7,308,535 $ 8,183,376 Long term advances from customers $ 3,401,667 $ — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Nonrecurring Fair Value Measurements | Year ended December 31, 2015 Description Carrying Quoted Prices in Significant Significant Total Losses Property, plant and equipment – identified untransferrable relocation assets $ 1,622,588 $ $ - $ $ 1,622,588 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Schedule of Income Tax Expenses | Year ended December 31, 2013 2014 2015 Current Tax (Benefit) Expenses $ (162,621 ) $ — $ 1,786,092 Deferred Tax Expenses (Benefit) 1,434,386 — (648,271 ) Total $ 1,271,765 $ — $ 1,137,821 |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2014 2015 Net operating loss carried forward $ 27,349,606 $ 22,549,975 Inventory write-down 26,141 - Bad debt provision 478,367 163,120 Government grants related to assets 498,582 166,922 Long-lived asset impairment&depreciation 21,009,037 19,624,021 Others 748,018 485,776 Sub-total 50,109,751 42,989,814 Valuation Allowance (50,109,751 ) (42,362,849 ) Total $ — $ 626,965 Deferred tax assets are analyzed as: Current $ — $ — Non-current — 626,965 |
Schedule of Changes of Valuation Allowance | Year ended December 31, 2013 2014 2015 Beginning balance $ 37,682,733 $ 56,633,867 $ 50,109,751 Additions (Reversal) 56,697,096 (5,168,917 ) (5,708,268 ) Deconsolidation (39,357,744 ) — — Foreign exchange effect 1,611,782 (1,355,199 ) (2,038,634 ) Ending Balance $ 56,633,867 $ 50,109,751 $ 42,362,849 |
Schedule of Effective Income Tax Rate Reconciliation | Year ended December 31, 2013 2014 2015 PRC Enterprise Income Tax 25 % 25 % 25 % Preferential income tax rate of a subsidiary (2 )% (9 )% (8 )% Effect of different reversal rate 3 % 1 % - % Additional tax deductions (1 )% (8 )% (12 )% Different tax rate in other jurisdictions — % 6 % 8 % Changes in valuation allowance (26 )% — % (3 )% Tax credits — % (15 )% (3 )% Withhold tax — % — % 1 % Effective tax rate (1 )% — % 7 % |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE BASED COMPENSATION [Abstract] | |
Schedule of Assumptions Used | Year Ended December 31, 2013 Options granted Average risk-free rate of return Exercise multiple Volatility rate Dividend yield Post- vesting forfeiture rate April 3, 2013 2.29 2.8 51.78 0 3 Year Ended December 31, 2014 Options Average Exercise Volatility Dividend Post- January 28, 2014 2.77 3.0 - 3.5 93.0 0 3 - 9.5 Year Ended December 31, 2015 Options Average Exercise Volatility Dividend Post- January 12, 2015 2.82 1.8 3 93.0 % 0 5 8 July 06, 2015 3.20 3 91.0 0 5 September 09, 2015 2.94 3.08 1.8 3 91.0 92.0 0 5 8 |
Summary of Stock Option Activity | Number of Weighted Weighted Aggregate Options outstanding on January 1, 2015 12,375,416 0.87 Granted 8,134,375 0.59 Forfeited (1,307,743 ) 0.56 Expired (557,882 ) 0.59 Exercised (1,115,625 ) 0.25 Options outstanding on December 31, 2015 17,528,541 0.50 7.48 2,973,866 Options vested or expected to vest on December 31, 2015 12,978,233 0.40 6.12 3,499,985 Options exercisable on December 31, 2015 9,965,138 0.42 6.38 2,434,628 |
RELATED PARTY TRANSACTIONS AN42
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract] | |
Schedule of Related Party Balances, Loans | December 31, 2014 2015 Amounts due from related parties Zhenjiang Daqo $ 4,551,846 $ 229,989 Daqo Group 5,110,085 - Others 325,037 54,644 Total $ 9,986,968 $ 284,633 |
Schedule of Related Party Balances, Payables | December 31, 2014 2015 Amounts due to related parties Daqo Solar $ 54,275,617 $ 37,390,575 Xinjiang Daqo investment 23,104,709 3,146,054 Daqo New Material 4,950,746 5,563,165 Chongqing Daqo Tailai 1,755,326 144,102 Nanjing Daqo Transformer 1,595,659 - Daqo Group 1,339,128 33,758 Jiangsu Daqo 1,200,018 - Nanjing Daqo Electric 742,747 - Others* 734,201 118,873 Total $ 89,698,151 $ 46,396,527 * The remaining balance of amounts due to related parties of $118,873 as of December 31, 2015 was comprised of Zhenjiang Moeller and Daqo Sailfar in the amount of $ 107,771 11,102 |
Schedule of Related Party Transactions | Transaction Year Ended December 31, Name of Related parties Nature 2013 2014 2015 Daqo Group Purchase-Fixed asset — 486,948 - Proceeds from interest free loans 813,105 10,821,462 15,043,550 Repayment of interest free loans 813,105 8,115,813 20,217,257 Zhenjiang Daqo Sales 13,471,866 9,554,320 11,111,239 Daqo Solar Sales — 9,595,680 783,705 Proceeds from interest free loans 76,881,392 157,241,390 127,060,826 Repayment of interest free loans 28,379,678 166,231,092 151,990,672 Nanjing Daqo Sales — 112 - Proceeds from interest free loans — 973,898 13,456,861 Repayment of interest free loans — 2,921,693 13,456,861 Xinjiang Daqo Investment Proceeds from interest free loans 58,389,643 98,367,234 72,946,700 Repayment of interest free loans 40,193,785 93,219,846 73,252,506 Daqo New Material Proceeds from interest free loans — 7,729,501 11,082,241 Repayment of interest free loans — 4,600,117 11,285,114 Rental expense — 1,071,287 1,050,661 Chongqing Purchase-Fixed asset - 2,724,790 375,528 Purchase-Raw material - - 9,938 Income from disposal of fixed assets - - 6,458 Proceeds from interest free loans - - 6,367,640 Repayment of interest free loans - - 6,367,640 Others subsidiaries under Daqo Group Proceeds from interest free loans — 636 - Repayment of interest free loans - - 5,296 Purchase-Fixed asset* 157,742 3,989,686 3,488,330 Purchase-Raw material — — 22,817 Total Sales $ 13,471,866 $ 19,150,112 $ 11,894,944 Income from disposal of fixed assets $ — $ — $ 6,458 Purchase-Fixed asset $ 157,742 $ 7,201,424 $ 3,863,858 Purchase-Raw material $ — $ — $ 32,755 Rental expense $ — $ 1,071,287 $ 1,050,661 Proceeds from interest free loans $ 136,084,140 $ 275,134,122 $ 245,957,818 Repayment of interest free loans $ 69,386,568 $ 275,088,560 $ 276,575,346 * The purchase of fixed assets of $ 3,488,330 93,795 448,184 2,005,617 11,423 483,764 445,547 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of Calculation of Earnings Per Share | Year ended December 31, 2013 2014 2015 Numerator used in basic and diluted earnings per share: Net (loss) income attributable to Daqo New Energy Corp. ordinary shareholders—basic and diluted $ (70,943,484 ) $ 16,649,176 $ 12,956,889 Denominator used in basic and diluted earnings per share: Weighted average number of ordinary shares outstanding used in computing earnings per share—basic 173,068,420 206,349,976 258,015,851 Plus: share options — 5,003,667 3,396,082 Weighted average number of ordinary shares outstanding used in computing earnings per share—diluted 173,068,420 211,353,643 261,411,933 NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Basic $ (0.41 ) $ 0.08 $ 0.05 NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Diluted $ (0.41 ) 0.08 0.05 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Future Minimum Lease Payments | Year ending December 31 2016 (Note 19) $ 1,050,661 Total $ 1,050,661 |
VARIABLE INTEREST ENTITY (Table
VARIABLE INTEREST ENTITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITY [Abstract] | |
Schedule of Variable Interest Entities Financial Information | Year ended December 31, 2013 2014 2015 Revenues $ * $ * $ * Operating costs and expenses $ 150,147,024 $ * $ * Net income (loss) $ (150,147,024 ) $ * $ * * The lease term was amended at the beginning of 2013 and reduced the rent to $ 0 per month and was later terminated on December 30, 2013. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT INFORMATION [Abstract] | |
Summary of Financial Information by Segment | Year ended December 31, 2013 Polysilicon Wafer Elimination Total Revenue - External $ 76,721,105 $ 32,278,700 $ - $ 108,999,805 Revenue - Intersegment 13,195,838 - (13,195,838 ) - Total revenue 89,916,943 32,278,700 (13,195,838 ) 108,999,805 Total Cost of revenue 98,684,325 49,614,921 (13,195,838 ) 135,103,408 Gross loss $ (8,767,382 ) $ (17,336,221 ) $ - $ (26,103,603 ) Year ended December 31, 2014 Polysilicon Wafer Elimination Total Revenue - External $ 127,692,325 54,879,527 - 182,571,852 Revenue - Intersegment 29,424,883 - (29,424,883 ) - Total revenue 157,117,208 54,879,527 (29,424,883 ) 182,571,852 Total Cost of revenue 119,703,550 47,861,811 (28,256,850 ) 139,308,511 Gross Profit $ 37,413,658 7,017,716 (1,168,033 ) 43,263,341 Year ended December 31, 2015 Polysilicon Wafer Elimination Total Revenue – External $ 125,916,457 56,124,511 - 182,040,968 Revenue - Intersegment 23,485,364 - (23,485,364 ) - Total Revenue 149,401,821 56,124,511 (23,485,364 ) 182,040,968 Total Cost of revenue 121,193,840 46,763,308 (23,466,065 ) 144,491,083 Gross Profit $ 28,207,981 9,361,203 (19,299 ) 37,549,885 |
Schedule of Revenues of Major Customers | Year ended December 31, 2013 2014 2015 Customer B $ 19,644,488 $ 23,882,302 $ 18,125,773 Customer C $ * $ 18,210,196 $ 19,595,911 Customer D $ 13,471,873 $ * $ * Customer J $ * $ * $ 35,094,472 Customer K $ * $ * $ 20,465,558 * Represents less than 10% |
ORGANIZATION AND PRINCIPAL AC47
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Proceeds from non-controlling interest | $ 2,516,457 | |
Xinjiang Daqo Investment [Member] | ||
Related Party Transaction [Line Items] | ||
Equity interest acquired (as a percent) | 1.00% | |
Daqo Group [Member] | Xinjiang Daqo [Member] | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 100.00% | |
Proceeds from non-controlling interest | $ 2,500,000 |
SUMMARY OF PRINCIPAL ACCOUNTI48
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Additional Information) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2015 | May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basis of presentation | ||||||
Working capital | $ (186,600,000) | |||||
Cash and cash equivalents | 14,490,011 | $ 7,068,483 | $ 7,831,084 | $ 6,679,024 | ||
Short-term bank borrowings, including current portion of long-term bank borrowings | 123,936,995 | 159,803,876 | ||||
Capital commitments relating to purchases of property, plant and equipment | 15,500,000 | |||||
Bank accepted note facilities | $ 22,600,000 | |||||
Consecutive years in which net income and positive cash flow from operations generated | 2 years | |||||
Amounts due from related parties | $ 284,633 | 9,986,968 | ||||
Current portion of long-term debt | 51,576,265 | 69,360,869 | ||||
Follow-on equity offering, net of issuance costs | $ 28,000,000 | $ 54,600,000 | 27,996,959 | 54,624,447 | ||
Net income | 13,047,584 | 16,649,176 | (221,090,508) | |||
Cash flow from operations | 66,426,213 | 45,619,729 | (16,525,817) | |||
Restricted cash | ||||||
Restricted cash | 19,062,714 | 22,169,236 | ||||
Inventories | ||||||
Inventory write-down | 62,422 | 175,568 | 29,905,734 | |||
Prepaid land use rights | ||||||
Lease Expenses | 595,716 | $ 628,052 | 781,706 | |||
Impairment of long-lived assets | ||||||
Long-lived asset impairment | 1,622,588 | 158,424,827 | ||||
Shipping and handling | ||||||
Shipping and handling costs | 2,708,962 | $ 2,054,786 | 1,901,384 | |||
Government subsidies | ||||||
Unrestricted cash government subsidies | 3,578,865 | 926,173 | 5,249,788 | |||
Government grants related to assets | 690,889 | 113,735 | 1,172,160 | |||
Foreign currency translation | ||||||
Aggregate amount of cash and cash equivalents and restricted cash denominated in RMB | 30,891,550 | $ 24,356,970 | ||||
Noncontrolling interest | ||||||
Noncontrolling interest | 1,302,027 | |||||
Treasury Stock | ||||||
Share repurchase program, authorized amount | $ 5,000,000 | |||||
Purchase price of treasury stock | 1,350,164 | |||||
Daqo Group [Member] | ||||||
Basis of presentation | ||||||
Capital commitments relating to purchases of property, plant and equipment | $ 46,400,000 | |||||
Amounts due from related parties | $ 5,110,085 | |||||
Common Stock Outstanding [Member] | ||||||
Basis of presentation | ||||||
Follow-on equity offering, net of issuance costs | $ 3,850 | $ 5,000 | ||||
Net income | ||||||
Treasury Stock | ||||||
Number of shares repurchased | 2,356,900 |
SUMMARY OF PRINCIPAL ACCOUNTI49
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Concentration of Credit Risk) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Concentration of credit risk | |||||
Accounts receivable, allowance for doubtful accounts | $ 1,087,465 | $ 3,189,110 | |||
Accounts receivable | $ 19,849,608 | $ 8,714,261 | |||
Sales [Member] | |||||
Concentration of credit risk | |||||
Concentration risk, percentage | 51.00% | 23.00% | 30.00% | ||
Customer C [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | [1] | $ 2,213,393 | |||
Customer J [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | $ 2,996,042 | 1,578,947 | |||
Customer M [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | [1] | 1,330,145 | |||
Customer H [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | $ 6,354,510 | $ 1,071,415 | |||
Customer N [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | 2,315,035 | [1] | |||
Customer B [Member] | |||||
Concentration of credit risk | |||||
Accounts receivable | $ 2,299,732 | ||||
[1] | Represents less than 10% |
SUMMARY OF PRINCIPAL ACCOUNTI50
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment | |||
Interest expense capitalized | $ 2,825,879 | $ 1,960,259 | |
Depreciation of property, plant and equipment | 31,361,026 | 28,007,943 | $ 52,250,595 |
Net (loss) income | $ 13,047,584 | $ 16,649,176 | $ (221,090,508) |
Basic income per share | $ 0.05 | $ 0.08 | $ (0.41) |
Service Life [Member] | |||
Property, plant and equipment | |||
Depreciation of property, plant and equipment | $ (18,700,000) | $ (18,700,000) | |
Net (loss) income | $ 18,700,000 | $ 18,700,000 | |
Basic income per share | $ 0.07 | $ 0.09 | |
Buildings and plant [Member] | |||
Property, plant and equipment | |||
Estimated useful lives | 30 years | 20 years | |
Machinery and equipment [Member] | |||
Property, plant and equipment | |||
Estimated useful lives | 15 years | 10 years | |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures and equipment [Member] | Maximum [Member] | |||
Property, plant and equipment | |||
Estimated useful lives | 5 years | ||
Motor vehicles [Member] | |||
Property, plant and equipment | |||
Estimated useful lives | 6 years |
SUMMARY OF PRINCIPAL ACCOUNTI51
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Share-based Compensation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 3,687,951 | $ 1,792,819 | $ 1,881,401 |
Selling, general and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 3,323,948 | 1,544,078 | 1,743,768 |
Research and development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 12,310 | 60,987 | |
Cost of sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 364,003 | $ 236,431 | $ 76,646 |
EXIT and DISPOSAL ACTIVITIES (D
EXIT and DISPOSAL ACTIVITIES (Details) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015CNY (Â¥) | Dec. 31, 2014CNY (Â¥) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Reclassification of foreign currency translation gain from other comprehensive income | $ (9,980,051) | ||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment charge | $ 1,622,588 | 158,424,827 | |||
Employee termination costs | $ 800,000 | ||||
Relocation costs | 500,000 | ||||
Expected relocation costs | 2,200,000 | ||||
Maintenance expenses | 300,000 | ||||
Wages [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Maintenance expenses | 200,000 | ||||
Electricity fees [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Maintenance expenses | 100,000 | ||||
Selling, general and administrative expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Relocation costs | 100,000 | 800,000 | |||
Carrying Value [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Carrying value of assets | 308,000,000 | ||||
Significant Production Assets [Member] | Carrying Value [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Carrying value of assets | 1,600,000 | 116,100,000 | $ 144,700,000 | ¥ 720.5 | |
Impairment charge | 1,600,000 | ||||
Carrying value of assets relocated | 1,100,000 | 46,100,000 | ¥ 7 | 286.4 | |
Carrying value of assets yet to be relocated | $ 59,100,000 | 70,000,000 | ¥ 383.9 | ¥ 434.1 | |
Accumulated impairment loss | $ 0 |
FOLLOW-ON EQUITY OFFERING (Deta
FOLLOW-ON EQUITY OFFERING (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FOLLOW-ON EQUITY OFFERING [Abstract] | |||||
America depositary shares (ADSs) issued, shares | 1,540,000 | 2,000,000 | |||
Follow-on equity offering, net of issuance costs, shares | 38,500,000 | 50,000,000 | |||
Issuance cost for ordinary shares | $ 2,000,000 | $ 3,400,000 | $ 2,033,041 | $ 3,375,553 | |
Follow-on equity offering, net of issuance costs | $ 28,000,000 | $ 54,600,000 | $ 27,996,959 | $ 54,624,447 |
ALLOWANCES FOR DOUBTFUL RECEI54
ALLOWANCES FOR DOUBTFUL RECEIVABLES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Analysis of allowances for accounts receivable is as follows: | |||
Beginning of the year | $ 3,189,110 | $ 7,160,782 | $ 1,592,467 |
Allowances (Reversal) during the year | (2,026,567) | (3,823,744) | 5,482,019 |
Foreign exchange effect | (75,078) | (147,928) | 86,296 |
Closing balance | 1,087,465 | 3,189,110 | $ 7,160,782 |
Allowances reversed during the period | $ 2,026,567 | $ 3,823,744 |
PREPAID EXPENSE AND OTHER CUR55
PREPAID EXPENSE AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
PREPAID EXPENSE AND OTHER CURRENT ASSETS [Abstract] | ||
Spare parts | $ 6,052,315 | $ 6,385,388 |
Prepaid Value added tax ("VAT") | 5,552,772 | 5,857,017 |
Prepaid insurance fee | 347,631 | 226,564 |
Others | 282,423 | 366,900 |
Total | $ 12,235,141 | $ 12,835,869 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INVENTORIES [Abstract] | |||
Raw materials | $ 2,343,104 | $ 1,362,944 | |
Work-in-process | 5,626,531 | 5,411,360 | |
Finished goods | 2,746,304 | 2,807,480 | |
Total | 10,715,939 | 9,581,784 | |
Inventory write-down | $ 62,422 | $ 175,568 | $ 29,905,734 |
PROPERTY, PLANT AND EQUIPMENT57
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 544,326,125 | $ 559,006,119 | |
Depreciation of property, plant and equipment | 31,361,026 | $ 28,007,943 | $ 52,250,595 |
Long-lived asset impairment | 1,622,588 | $ 158,424,827 | |
Buildings and plant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 313,290,516 | $ 233,230,935 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 389,373,554 | 351,409,724 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 22,418,768 | 18,469,913 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 293,331 | 257,408 | |
Depreciable Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Less: Accumulated depreciation | (188,680,279) | (169,264,463) | |
Total | 536,695,889 | 434,103,517 | |
Construction in process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 7,630,236 | $ 124,902,602 |
BORROWINGS (Schedule of Bank Bo
BORROWINGS (Schedule of Bank Borrowings) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
BORROWINGS [Abstract] | ||
Short-term bank borrowings | $ 72,360,730 | $ 90,443,007 |
Long-term bank borrowings, current portion | 51,576,265 | 69,360,869 |
Total borrowings, current | 123,936,995 | 159,803,876 |
Long-term bank borrowings, non-current portion | 118,548,430 | 77,336,160 |
Total | $ 242,485,425 | $ 237,140,036 |
BORROWINGS (Short-Term Borrowin
BORROWINGS (Short-Term Borrowings) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short-term credit bank borrowings | $ 72,360,730 | $ 90,443,007 |
Interest rate on short-term bank borrowings | 5.40% | 6.80% |
Bank Facilities [Member] | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity of credit line | $ 22,600,000 | |
Debt Guaranteed by Daqo Group and Mr. Guangfu Xu and Mr. Xinag Xu [Member] | ||
Short-term Debt [Line Items] | ||
Short-term credit bank borrowings | $ 27,389,890 | |
Short Term Borrowing Guaranteed By Daqo Group And Related Parties [Member] | ||
Short-term Debt [Line Items] | ||
Short-term credit bank borrowings | $ 72,360,730 | |
Short-term borrowing guaranteed by Daqo Group and a third party [Member] | ||
Short-term Debt [Line Items] | ||
Short-term credit bank borrowings | $ 11,278,190 | |
Short-term Credit Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Short-term credit bank borrowings | $ 51,774,927 |
BORROWINGS (Long-Term Borrowing
BORROWINGS (Long-Term Borrowings) (Details) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (Â¥) | Dec. 31, 2015CNY (Â¥) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term bank borrowings | $ 170,124,695 | ||||
Huaxia Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Initiation date of credit facility | Sep. 28, 2011 | Sep. 28, 2011 | |||
Term of facility | 4 years | 4 years | |||
Maximum borrowing amount of credit facility | $ 61,600,000 | ¥ 400 | |||
Amount drawn down | 58,500,000 | ¥ 380 | |||
Amount repaid | 55,400,000 | 360 | |||
Amount of collateral | 8,100,000 | ||||
Amount available for future draw down | 3,100,000 | ¥ 20 | |||
Huaxia Bank [Member] | Facility One [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount drawn down | $ 20,000,000 | 130 | |||
Fixed interest rate | 6.65% | 6.65% | |||
Huaxia Bank [Member] | Facility Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount drawn down | $ 38,500,000 | ¥ 250 | |||
Fixed interest rate | 6.90% | 6.90% | |||
Bank of China [Member] | |||||
Debt Instrument [Line Items] | |||||
Initiation date of credit facility | Sep. 30, 2011 | Sep. 30, 2011 | |||
Term of facility | 6 years | 6 years | |||
Maximum borrowing amount of credit facility | $ 115,500,000 | ¥ 750 | |||
Interest rate spread over rate issued by People's Bank of China | 5.00% | 5.00% | |||
Amount drawn down | $ 115,500,000 | ¥ 750 | |||
Amount repaid | $ 44,600,000 | ¥ 290 | |||
Fixed interest rate | 5.41% | 5.41% | |||
Amount of collateral | $ 73,900,000 | ||||
Chongqing Rural Commercial Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Initiation date of credit facility | Jun. 25, 2015 | Jun. 25, 2015 | |||
Term of facility | 6 years | 6 years | |||
Maximum borrowing amount of credit facility | $ 96,200,000 | ¥ 625 | |||
Interest rate spread over rate issued by People's Bank of China | 20.00% | 20.00% | |||
Amount drawn down | $ 96,200,000 | ¥ 625 | |||
Fixed interest rate | 5.80% | 5.80% | |||
Bank Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.70% | 5.70% | 6.90% | ||
Long-term bank borrowings | $ 170,124,695 | $ 146,697,029 | |||
Bank Facilities [Member] | China Construction Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term bank borrowings | 6,444,680 | ||||
Bank Facilities [Member] | Huaxia Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term bank borrowings | $ 3,079,180 | 25,778,720 | |||
Bank Facilities [Member] | Bank of China [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term bank borrowings | 70,821,140 | 101,503,710 | |||
Bank Facilities [Member] | Chongqing Rural Commercial Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term bank borrowings | $ 96,224,375 | $ 12,969,919 |
BORROWINGS (Schedule of Princip
BORROWINGS (Schedule of Principal Maturities of Bank Borrowings) (Details) | Dec. 31, 2015USD ($) |
BORROWINGS [Abstract] | |
2,016 | $ 51,576,265 |
2,017 | 53,885,650 |
2,018 | 18,475,080 |
2,019 | 18,475,080 |
2,020 | 18,475,080 |
2,021 | 9,237,540 |
Total | $ 170,124,695 |
ACCRUED EXPENSES AND OTHER CU62
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Accrued payroll and welfare | $ 3,524,876 | $ 3,309,850 |
Accrued professional fees | 776,518 | 576,786 |
Other tax payables | 2,298,780 | 2,263,055 |
Interest payable | $ 38,054 | 148,995 |
Contingent liability (Note 18) | 400,000 | |
Others | $ 1,978,603 | 2,256,977 |
Total | $ 8,616,831 | $ 8,955,663 |
ADVANCES FROM CUSTOMERS (Detail
ADVANCES FROM CUSTOMERS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Total | $ 8,183,376 | $ 10,710,202 |
Less: Current portion of advances from customers | $ 8,183,376 | 7,308,535 |
Long term advances from customers | 3,401,667 | |
Customer E [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | $ 3,237,308 | 8,041,836 |
Customer F [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | 1,517,402 | $ 2,405,619 |
Customer I [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | 1,539,590 | |
Customer L [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | 781,342 | $ 111 |
Others [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total | $ 1,107,734 | $ 262,636 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived asset impairment | $ 1,622,588 | $ 158,424,827 | |
Daqo New Material Co., Ltd. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived asset impairment | $ 143,000,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived asset impairment | $ 1,622,588 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment - identified untransferrable relocation assets | |||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment - identified untransferrable relocation assets | |||
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment - identified untransferrable relocation assets | $ 308,000,000 | ||
Asset - identified untransferrable relocation assets | $ 1,600,000 | ||
Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment - identified untransferrable relocation assets | $ 1,622,588 | ||
Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment - identified untransferrable relocation assets | $ 150,000,000 | ||
Asset - identified untransferrable relocation assets |
MAINLAND CHINA CONTRIBUTION P65
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION [Abstract] | |||
Defined contribution plan expenses | $ 4,087,334 | $ 3,130,308 | $ 3,142,213 |
Aggregate balance of statutory common reserves | 17,720,748 | $ 20,190,729 | $ 16,803,191 |
Restrictions of statutory reserves | $ 213,794,097 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax paid | $ 2,726,825 | ||
Xinjiang Daqo New Energy Co., Ltd. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Dividend distribution received | 1,100,000 | ||
Income tax paid | 100,000 | ||
Chongqing Daqo New Energy Co., Ltd. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating losses carried forward | $ 90,200,000 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Expenses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||
Current Tax (Benefit) Expenses | $ 1,786,092 | $ (162,621) | |
Deferred Tax Expenses (Benefit) | (648,271) | 1,434,386 | |
Total | $ 1,137,821 | $ 1,271,765 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ||||
Net operating loss carried forward | $ 22,549,975 | $ 27,349,606 | ||
Inventory write-down | 26,141 | |||
Bad debt provision | $ 163,120 | 478,367 | ||
Government grants related to assets | 166,922 | 498,582 | ||
Long-lived asset impairment & depreciation | 19,624,021 | 21,009,037 | ||
Others | 485,776 | 748,018 | ||
Sub-total | 42,989,814 | 50,109,751 | ||
Valuation Allowance | (42,362,849) | $ (50,109,751) | $ (56,633,867) | $ (37,682,733) |
Total | $ 626,965 | |||
Deferred tax assets are analyzed as: | ||||
Current | ||||
Non-current | $ 626,965 |
INCOME TAXES (Schedule of Chang
INCOME TAXES (Schedule of Changes of Valuation Allowance) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||
Beginning balance | $ 50,109,751 | $ 56,633,867 | $ 37,682,733 |
Additions (Reversal) | $ (5,708,268) | $ (5,168,917) | 56,697,096 |
Deconsolidation | (39,357,744) | ||
Foreign exchange effect | $ (2,038,634) | $ (1,355,199) | 1,611,782 |
Ending balance | $ 42,362,849 | $ 50,109,751 | $ 56,633,867 |
INCOME TAXES (Schedule of Effec
INCOME TAXES (Schedule of Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective income tax rate: | |||
PRC Enterprise Income Tax | 25.00% | 25.00% | 25.00% |
Preferential income tax rate of a subsidiary | (8.00%) | (9.00%) | (2.00%) |
Effect of different reversal rate | 1.00% | 3.00% | |
Additional tax deductions | (12.00%) | (8.00%) | (1.00%) |
Different tax rate in other jurisdictions | 8.00% | 6.00% | |
Changes in valuation allowance | (3.00%) | (26.00%) | |
Tax credits | (3.00%) | (15.00%) | |
Withhold tax | 1.00% | ||
Effective tax rate | 7.00% | (1.00%) |
INCOME TAXES (Schedule of Eff71
INCOME TAXES (Schedule of Effect of Tax Holidays) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||
The aggregate dollar effect | $ 1.2 | $ 3 | |
Per share effect-basic and diluted | $ 0.01 | $ 0.01 |
SHARE BASED COMPENSATION (Narra
SHARE BASED COMPENSATION (Narrative) (Details) - USD ($) | Sep. 09, 2015 | Jul. 06, 2015 | Jan. 12, 2015 | Jan. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares authorized | 21,000,000 | ||||||
Granted | 8,134,375 | 6,274,166 | 140,000 | ||||
Weighted average fair value of stock options granted | $ 0.59 | $ 0.98 | $ 0.11 | ||||
Share-based compensation | $ 3,687,951 | $ 1,792,819 | $ 1,881,401 | ||||
Unrecognized compensation cost related to non-vested stock options | $ 5,279,522 | ||||||
Unrecognized compensation cost, recognition period | 2 years 8 months 12 days | ||||||
Employee Stock Option [Member] | Independent Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 600,000 | ||||||
Vesting period for plan | 2 years | ||||||
Vesting installments during vesting period | 24 | ||||||
Exercise price | $ 0.87 | ||||||
Employee Stock Option [Member] | Independent Directors [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Independent Directors [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Independent Directors [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 12,569,166 | 6,534,375 | |||||
Vesting period for plan | 3 years | ||||||
Vesting installments during vesting period | 36 | ||||||
Exercise price | $ 0.59 | $ 0.87 | |||||
Incremental cost associated with the modification | $ 282,581 | $ 241,557 | |||||
Share-based compensation | 123,322 | 60,107 | |||||
Unrecognized compensation cost related to non-vested stock options | $ 159,259 | $ 181,470 | |||||
Unrecognized compensation cost, recognition period | 2 years 10 months 6 days | 2 years 10 months 28 days | |||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Batch one [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | $ 0.38 | $ 0.55 | |||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Batch two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | 0.35 | $ 0.52 | |||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Batch three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | 0.38 | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Batch four [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | 0.37 | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Batch five [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | $ 0.40 | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Relevant Employees and Executive Officers [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Employee Stock Option [Member] | Executive officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 1,000,000 | ||||||
Vesting period for plan | 3 years | ||||||
Vesting installments during vesting period | 24 | ||||||
Exercise price | $ 0.84 | ||||||
Employee Stock Option [Member] | Executive officers [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Executive officers [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Employee Stock Option [Member] | Executive officers [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% |
SHARE BASED COMPENSATION (Sched
SHARE BASED COMPENSATION (Schedule of Assumptions Used with Binomial Option Valuation Model) (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
April 3, 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 2.29% | ||
Exercise multiple | 2.8 | ||
Volatility rate | 51.78% | ||
Dividend yield | 0.00% | ||
Post-vesting forfeiture rate | 3.00% | ||
January 28, 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 2.77% | ||
Volatility rate | 93.00% | ||
Dividend yield | 0.00% | ||
January 28, 2014 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Post-vesting forfeiture rate | 3.00% | ||
January 28, 2014 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3.5 | ||
Post-vesting forfeiture rate | 9.50% | ||
January 12, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 2.82% | ||
Volatility rate | 93.00% | ||
Dividend yield | 0.00% | ||
January 12, 2015 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 1.8 | ||
Post-vesting forfeiture rate | 5.00% | ||
January 12, 2015 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Post-vesting forfeiture rate | 8.00% | ||
July 06, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 3.20% | ||
Exercise multiple | 3 | ||
Volatility rate | 91.00% | ||
Dividend yield | 0.00% | ||
Post-vesting forfeiture rate | 5.00% | ||
September 09, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
September 09, 2015 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 2.94% | ||
Exercise multiple | 1.8 | ||
Volatility rate | 91.00% | ||
Post-vesting forfeiture rate | 5.00% | ||
September 09, 2015 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free rate of return | 3.08% | ||
Exercise multiple | 3 | ||
Volatility rate | 92.00% | ||
Post-vesting forfeiture rate | 8.00% |
SHARE BASED COMPENSATION (Summa
SHARE BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | |||
Options outstanding | 12,375,416 | ||
Granted | 8,134,375 | 6,274,166 | 140,000 |
Forfeited | (1,307,743) | ||
Expired | (557,882) | ||
Exercised | (1,115,625) | ||
Options outstanding | 17,528,541 | 12,375,416 | |
Options vested or expected to vest | 12,978,233 | ||
Options exercisable | 9,965,138 | ||
Weighted Average Exercise Price | |||
Options outstanding | $ 0.87 | ||
Granted | 0.59 | ||
Forfeited | 0.56 | ||
Expired | 0.59 | ||
Exercised | 0.25 | ||
Options outstanding | 0.50 | $ 0.87 | |
Options vested or expected to vest | 0.40 | ||
Options exercisable | $ 0.42 | ||
Weighted Average Remaining Contract Life | |||
Options outstanding | 7 years 5 months 23 days | ||
Options vested or expected to vest | 6 years 1 month 13 days | ||
Options exercisable | 6 years 4 months 17 days | ||
Aggregate Intrinsic Value | |||
Options outstanding | $ 2,973,866 | ||
Options vested or expected to vest | 3,499,985 | ||
Options exercisable | $ 2,434,628 |
RELATED PARTY TRANSACTIONS AN75
RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 28, 2012 | ||
Related Party Transaction [Line Items] | |||||
Sales | $ 11,894,944 | $ 19,150,112 | $ 13,471,866 | ||
Related party balances: | |||||
Amounts due from related parties | 284,633 | 9,986,968 | |||
Amounts due to related parties | 46,396,527 | 89,698,151 | |||
Change in amount due from related parties | (5,481,362) | $ (2,193,604) | $ 6,853,965 | ||
Disposition of Subsidiary [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 6,458 | ||||
Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 3,863,858 | $ 7,201,424 | $ 157,742 | ||
Purchases of Raw Materials [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 32,755 | ||||
Rental Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Expense | 1,050,661 | $ 1,071,287 | |||
Cash Proceeds from Transactions [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 245,957,818 | 275,134,122 | $ 136,084,140 | ||
Cash Payments for Transactions [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 276,575,346 | 275,088,560 | 69,386,568 | ||
Daqo Group [Member] | |||||
Related party balances: | |||||
Amounts due from related parties | 5,110,085 | ||||
Amounts due to related parties | $ 33,758 | 1,339,128 | |||
Daqo Group [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 15,043,550 | 10,821,462 | 813,105 | ||
Daqo Group [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 20,217,257 | 8,115,813 | $ 813,105 | ||
Daqo Group [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 486,948 | ||||
Zhengjiang Daqo Solar Co. Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales | $ 11,111,239 | 9,554,320 | $ 13,471,866 | ||
Related party balances: | |||||
Amounts due from related parties | $ 229,989 | 4,551,846 | |||
Zhengjiang Daqo Solar Co. Ltd [Member] | Daqo Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Daqo Solar Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales | $ 783,705 | 9,595,680 | |||
Related party balances: | |||||
Amounts due to related parties | $ 37,390,575 | 54,275,617 | |||
Daqo Solar Co Ltd [Member] | Daqo Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Daqo Solar Co Ltd [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 127,060,826 | 157,241,390 | $ 76,881,392 | ||
Daqo Solar Co Ltd [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 151,990,672 | 166,231,092 | 28,379,678 | ||
Daqo Xinjiang Investment Co., Ltd. [Member] | |||||
Related party balances: | |||||
Amounts due to related parties | $ 3,146,054 | 23,104,709 | |||
Daqo Xinjiang Investment Co., Ltd. [Member] | Daqo Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Daqo Xinjiang Investment Co., Ltd. [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 72,946,700 | 98,367,234 | 58,389,643 | ||
Daqo Xinjiang Investment Co., Ltd. [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 73,252,506 | 93,219,846 | $ 40,193,785 | ||
Daqo New Material [Member] | |||||
Related party balances: | |||||
Amounts due to related parties | $ 5,563,165 | 4,950,746 | |||
Daqo New Material [Member] | Daqo Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Daqo New Material [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 11,082,241 | 7,729,501 | |||
Daqo New Material [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 11,285,114 | 4,600,117 | |||
Daqo New Material [Member] | Rental Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 1,050,661 | 1,071,287 | |||
Chongqing Daqo Tailai [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | $ 144,102 | $ 1,755,326 | |||
Chongqing Daqo Tailai [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 6,367,640 | ||||
Chongqing Daqo Tailai [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 6,367,640 | ||||
Chongqing Daqo Tailai [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 375,528 | $ 2,724,790 | |||
Chongqing Daqo Tailai [Member] | Purchases of Raw Materials [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | 9,938 | ||||
Chongqing Daqo Tailai [Member] | Income (Loss) from Disposal of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 6,458 | ||||
Daqo Transformer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | $ 1,595,659 | ||||
Daqo Transformer [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 448,184 | ||||
Jiangsu Daqo [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | 1,200,018 | ||||
Jiangsu Daqo [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 11,423 | ||||
Nanjing Daqo Electric [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | 742,747 | ||||
Nanjing Daqo Electric [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 93,795 | ||||
Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | $ 107,771 | ||||
Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 2,005,617 | ||||
Nanjing Daqo [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales | 112 | ||||
Nanjing Daqo [Member] | Daqo Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | 100.00% | |||
Nanjing Daqo [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 13,456,861 | 973,898 | |||
Nanjing Daqo [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | 13,456,861 | 2,921,693 | |||
Other Subsidiaries of Daqo Group [Member] | |||||
Related party balances: | |||||
Amounts due from related parties | 54,644 | 325,037 | |||
Amounts due to related parties | [1] | $ 118,873 | 734,201 | ||
Other Subsidiaries of Daqo Group [Member] | Proceeds From Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 636 | ||||
Other Subsidiaries of Daqo Group [Member] | Repayment of Interest Free Loans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other transactions | $ 5,296 | ||||
Other Subsidiaries of Daqo Group [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | [2] | 3,488,330 | $ 3,989,686 | $ 157,742 | |
Other Subsidiaries of Daqo Group [Member] | Purchases of Raw Materials [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 22,817 | ||||
Nanjing Intelligent Apparatus Co., Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Nanjing Intelligent Apparatus Co., Ltd [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 445,547 | ||||
Nanjing Intelligent Software Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Daqo Investment Co., Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Shanghai Sailfar Electric Technology Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Related party balances: | |||||
Amounts due to related parties | $ 11,102 | ||||
Jiangsu Daquan High Voltage Switchgear Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 75.00% | ||||
Jiangsu Daquan High Voltage Switchgear Co Ltd [Member] | Purchases of Fixed Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases | $ 483,764 | ||||
Jiangsu Daqo Kai-fan Electric Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
Zhenjiang Electric Equipment Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest held | 100.00% | ||||
[1] | The remaining balance of amounts due to related parties of $118,873 as of December 31, 2015 was comprised of Zhenjiang Moeller and Daqo Sailfar in the amount of $107,771 and $11,102, respectively. | ||||
[2] | The purchase of fixed assets of $3,488,330 was comprised of Nanjing Daqo Electric, Nanjing Daqo Transformer, Zhenjiang Moeller, Jiangsu Daqo, Jiangsu Daqo High Voltage Switchgear, Intelligent Apparatus in the amount of $93,795, $448,184, $2,005,617, $11,423, $483,764, $445,547 respectively. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator used in basic and diluted earnings per share: | |||
Net income (loss) attributable to Daqo New Energy Corp. ordinary shareholders-basic | $ 12,956,889 | $ 16,649,176 | $ (70,943,484) |
Net income (loss) attributable to Daqo New Energy Corp. ordinary shareholders-diluted | $ 12,956,889 | $ 16,649,176 | $ (70,943,484) |
Denominator used in basic and diluted earnings per share: | |||
Weighted average number of ordinary shares outstanding used in computing earnings per share-basic | 258,015,851 | 206,349,976 | 173,068,420 |
Plus: share options | 3,396,082 | 5,003,667 | |
Weighted average number of ordinary shares outstanding used in computing earnings per share - diluted | 261,411,933 | 211,353,643 | 173,068,420 |
NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE-Basic | $ 0.05 | $ 0.08 | $ (0.41) |
NET (LOSS) INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE-Diluted | $ 0.05 | $ 0.08 | $ (0.41) |
Outstanding employee options excluded from computation of diluted earnings per share | 12,563,541 | 6,154,166 | 6,371,250 |
COMMITMENTS AND CONTINGENCIES77
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital commitments: | |||
Commitments outstanding for the purchase of property, plant and equipment | $ 15,500,000 | ||
Lease commitments: | |||
Lease expense | 1,050,661 | $ 1,071,287 | $ 164,811 |
2016 (Note 19) | 1,050,661 | ||
Total | $ 1,050,661 | ||
Legal Matter | |||
Damages claimed for breach of contract | 800,000 | ||
Best estimate of loss | 400,000 | ||
Contingent liability accrued | $ 400,000 | ||
Litigation |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 14, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Variable Interest Entity [Line Items] | |||||
Revenues | $ 182,040,968 | $ 182,571,852 | $ 108,999,805 | ||
Net income (loss) | $ 12,956,889 | $ 16,649,176 | $ (70,943,484) | ||
Variable Interest Entity Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Revenues | [1] | ||||
Operating costs and expenses | $ 150,147,024 | ||||
Net income (loss) | $ (150,147,024) | ||||
Lease term | 3 years | ||||
Annual rental payment | $ 1,000,000 | ||||
[1] | The lease term was amended at the beginning of 2013 and reduced the rent to $0 per month and was later terminated on December 30, 2013. |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 182,040,968 | $ 182,571,852 | $ 108,999,805 | |||
Total Cost of revenue | 144,491,083 | 139,308,511 | 135,103,408 | |||
Gross (loss) profit | 37,549,885 | 43,263,341 | (26,103,603) | |||
Polysilicon [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 125,916,457 | 127,692,325 | 76,721,105 | |||
Wafer [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 56,124,511 | 54,879,527 | 32,278,700 | |||
Operating Segments [Member] | Polysilicon [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 149,401,821 | 157,117,208 | 89,916,943 | |||
Total Cost of revenue | 121,193,840 | 119,703,550 | 98,684,325 | |||
Gross (loss) profit | 28,207,981 | 37,413,658 | (8,767,382) | |||
Operating Segments [Member] | Wafer [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 56,124,511 | 54,879,527 | 32,278,700 | |||
Total Cost of revenue | 46,763,308 | 47,861,811 | 49,614,921 | |||
Gross (loss) profit | 9,361,203 | 7,017,716 | (17,336,221) | |||
Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (23,485,364) | (29,424,883) | (13,195,838) | |||
Total Cost of revenue | (23,466,065) | (28,256,850) | $ (13,195,838) | |||
Gross (loss) profit | (19,299) | (1,168,033) | ||||
Elimination [Member] | Polysilicon [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ (23,485,364) | $ (29,424,883) | $ (13,195,838) | |||
Elimination [Member] | Wafer [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | ||||||
Customer B [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 18,125,773 | $ 23,882,302 | $ 19,644,488 | |||
Customer C [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 19,595,911 | $ 18,210,196 | [1] | |||
Customer D [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | [1] | $ 13,471,873 | |||
Customer J [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 35,094,472 | [1] | [1] | |||
Customer K [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 20,465,558 | [1] | [1] | |||
[1] | Represents less than 10% |
FINANCIAL STATEMENT SCHEDULE I
FINANCIAL STATEMENT SCHEDULE I (BALANCE SHEET) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 14,490,011 | $ 7,068,483 | $ 7,831,084 | $ 6,679,024 |
Prepaid expenses and other current assets | 12,235,141 | 12,835,869 | ||
Amount due from a related party | 284,633 | 9,986,968 | ||
Total current assets | 88,776,027 | 121,949,234 | ||
TOTAL ASSETS | 660,851,404 | 710,131,219 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 8,616,831 | 8,955,663 | ||
Amount due to a related party | 46,396,527 | $ 89,698,151 | ||
Income tax payable | 940,732 | |||
Total current liabilities | 275,393,602 | $ 396,067,715 | ||
EQUITY | ||||
Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2014 and 2015; 240,714,103 and 279,214,103 shares issued as of December 31, 2014 and 2015, respectively and 223,577,853 and 260,836,578 shares outstanding as of December 31, 2014 and 2015, respectively) | 26,320 | 22,358 | ||
Additional paid in capital | 236,358,070 | 203,125,494 | ||
Retained accumulated losses | (3,061,404) | (16,018,293) | ||
Accumulated other comprehensive income | 8,780,313 | 20,037,183 | ||
Treasury stock | (1,748,836) | (398,672) | ||
Total shareholders' equity | 240,354,463 | 206,768,070 | ||
TOTAL LIABILITIES AND EQUITY | $ 660,851,404 | $ 710,131,219 | ||
Ordinary shares: | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 279,214,103 | 225,864,103 | ||
Ordinary shares, shares outstanding | 260,836,578 | 223,577,853 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | $ 2,563,083 | $ 4,493,150 | $ 5,187,046 | $ 5,669,834 |
Prepaid expenses and other current assets | $ 193,583 | 204,682 | ||
Amount due from a related party | 5,110,085 | |||
Total current assets | $ 2,756,666 | 9,807,917 | ||
Investments in subsidiaries | 238,112,877 | 197,571,399 | ||
TOTAL ASSETS | 240,869,543 | 207,379,316 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | $ 406,088 | 324,720 | ||
Amount due to a related party | $ 286,526 | |||
Income tax payable | $ 108,992 | |||
Total current liabilities | 515,080 | $ 611,246 | ||
EQUITY | ||||
Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2014 and 2015; 240,714,103 and 279,214,103 shares issued as of December 31, 2014 and 2015, respectively and 223,577,853 and 260,836,578 shares outstanding as of December 31, 2014 and 2015, respectively) | 26,320 | 22,358 | ||
Additional paid in capital | 236,358,070 | 203,125,494 | ||
Retained accumulated losses | (3,061,404) | (16,018,293) | ||
Accumulated other comprehensive income | 8,780,313 | 20,037,183 | ||
Treasury stock | (1,748,836) | (398,672) | ||
Total shareholders' equity | 240,354,463 | 206,768,070 | ||
TOTAL LIABILITIES AND EQUITY | $ 240,869,543 | $ 207,379,316 | ||
Ordinary shares: | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 279,214,103 | 240,714,103 | ||
Ordinary shares, shares outstanding | 260,836,578 | 223,577,853 |
FINANCIAL STATEMENT SCHEDULE 81
FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING EXPENSES | |||
Research and development | $ (923,664) | $ (1,486,978) | $ (3,391,012) |
Total operating expenses | (11,325,195) | (11,228,385) | (174,527,577) |
(Loss) income from operations | 26,224,690 | 32,034,956 | (200,631,180) |
Interest income | 493,995 | 324,118 | 149,752 |
Exchange gain | 640,678 | $ (55,792) | 11,875 |
Income tax expense | (1,137,821) | (1,271,765) | |
Net (loss) income attributable to Daqo New Energy Corp. ordinary shareholders | 12,956,889 | $ 16,649,176 | (70,943,484) |
Other comprehensive (loss) income: | |||
Comprehensive (loss) income attributable to Daqo New Energy Corp. shareholders | 1,700,019 | 12,987,163 | (66,795,294) |
Parent Company [Member] | |||
OPERATING EXPENSES | |||
General and administrative | $ (4,142,634) | (2,738,085) | (2,979,454) |
Research and development | (12,310) | (76,646) | |
Total operating expenses | $ (4,142,634) | (2,750,395) | (3,056,100) |
(Loss) income from operations | (4,142,634) | (2,750,395) | (3,056,100) |
Interest income | 1,641 | $ 8,144 | $ 3,130 |
Exchange gain | 118,679 | ||
Income tax expense | (108,992) | ||
NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES | (4,131,306) | $ (2,742,251) | $ (3,052,970) |
Equity in (losses) earnings of subsidiaries | 17,088,195 | 19,391,427 | (67,890,514) |
Net (loss) income attributable to Daqo New Energy Corp. ordinary shareholders | 12,956,889 | 16,649,176 | (70,943,484) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (11,256,870) | (3,662,013) | 4,148,190 |
Total other comprehensive income (loss) | (11,256,870) | (3,662,013) | 4,148,190 |
Comprehensive (loss) income attributable to Daqo New Energy Corp. shareholders | $ 1,700,019 | $ 12,987,163 | $ (66,795,294) |
FINANCIAL STATEMENT SCHEDULE 82
FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CHANGES IN EQUITY) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 206,768,070 | $ 137,326,561 | $ 340,877,413 | ||
Net income (loss) | 12,956,889 | 16,649,176 | (70,943,484) | ||
Share-based compensation | 3,687,951 | 1,792,819 | 1,881,401 | ||
Options Exercised | $ 275,783 | 37,080 | 135,171 | ||
Options Exercised, shares | 1,115,625 | ||||
Repurchase of Stock | $ (1,350,164) | ||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | 9,980,051 | ||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 28,000,000 | $ 54,600,000 | 27,996,959 | 54,624,447 | |
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively, shares | 38,500,000 | 50,000,000 | |||
Capital injection from noncontrolling shareholders | 2,516,457 | ||||
Balance | 241,656,490 | 206,768,070 | 137,326,561 | ||
Ordinary shares [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 22,358 | $ 17,343 | $ 17,288 | ||
Balance, shares | 223,577,853 | 173,427,853 | 172,877,433 | ||
Share-based compensation | |||||
Options Exercised | $ 112 | $ 15 | $ 55 | ||
Options Exercised, shares | 1,115,625 | 150,000 | 550,420 | ||
Repurchase of Stock | |||||
Repurchase of Stock, shares | (2,356,900) | ||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 3,850 | $ 5,000 | |||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively, shares | 38,500,000 | 50,000,000 | |||
Capital injection from noncontrolling shareholders | |||||
Balance | $ 26,320 | $ 22,358 | $ 17,343 | ||
Balance, shares | 260,836,578 | 223,577,853 | 173,427,853 | ||
Treasury Stock [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ (398,672) | $ (398,672) | $ (494,928) | ||
Share-based compensation | |||||
Options Exercised | $ 96,256 | ||||
Repurchase of Stock | $ (1,350,164) | ||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | |||||
Capital injection from noncontrolling shareholders | |||||
Balance | $ (1,748,836) | $ (398,672) | $ (398,672) | ||
Additional paid in capital [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | 203,125,494 | 146,676,163 | 144,755,902 | ||
Share-based compensation | 3,687,951 | 1,792,819 | 1,881,401 | ||
Options Exercised | $ 275,671 | 37,065 | $ 38,860 | ||
Repurchase of Stock | |||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 27,993,109 | 54,619,447 | |||
Capital injection from noncontrolling shareholders | 1,275,845 | ||||
Balance | 236,358,070 | 203,125,494 | $ 146,676,163 | ||
Retained earnings (accumulated losses) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ (16,018,293) | $ (32,667,469) | $ 38,276,015 | ||
Share-based compensation | |||||
Options Exercised | |||||
Repurchase of Stock | |||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | |||||
Capital injection from noncontrolling shareholders | |||||
Balance | $ (3,061,404) | $ (16,018,293) | $ (32,667,469) | ||
Accumulated other comprehensive income [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 20,037,183 | $ 23,699,196 | $ 19,551,006 | ||
Share-based compensation | |||||
Options Exercised | |||||
Repurchase of Stock | |||||
Deconsolidation of Nanjing Daqo New Energy Co., Ltd | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | |||||
Capital injection from noncontrolling shareholders | |||||
Balance | $ 8,780,313 | $ 20,037,183 | $ 23,699,196 | ||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | 206,768,070 | 137,326,561 | 202,105,283 | ||
Net income (loss) | 12,956,889 | 16,649,176 | (70,943,484) | ||
Other comprehensive income | (11,256,870) | (3,662,013) | 4,148,190 | ||
Share-based compensation | 3,687,951 | 1,792,819 | 1,881,401 | ||
Options Exercised | 275,783 | $ 37,080 | 135,171 | ||
Repurchase of Stock | $ (1,350,164) | ||||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 27,996,959 | $ 54,624,447 | |||
Capital injection from noncontrolling shareholders | 1,275,845 | ||||
Balance | 240,354,463 | 206,768,070 | 137,326,561 | ||
Parent Company [Member] | Ordinary shares [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 22,358 | $ 17,343 | $ 17,288 | ||
Balance, shares | 223,577,853 | 173,427,853 | 172,877,433 | ||
Net income (loss) | |||||
Other comprehensive income | |||||
Share-based compensation | |||||
Options Exercised | $ 112 | $ 15 | $ 55 | ||
Options Exercised, shares | 1,115,625 | 150,000 | 550,420 | ||
Repurchase of Stock, shares | (2,356,900) | ||||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 3,850 | $ 5,000 | |||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively, shares | 38,500,000 | 50,000,000 | |||
Balance | $ 26,320 | $ 22,358 | $ 17,343 | ||
Balance, shares | 260,836,578 | 223,577,853 | 173,427,853 | ||
Parent Company [Member] | Treasury Stock [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ (398,672) | $ (398,672) | $ (494,928) | ||
Net income (loss) | |||||
Other comprehensive income | |||||
Share-based compensation | |||||
Options Exercised | 96,256 | ||||
Repurchase of Stock | $ (1,350,164) | ||||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Balance | $ (1,748,836) | $ (398,672) | (398,672) | ||
Parent Company [Member] | Additional paid in capital [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 203,125,494 | $ 146,676,163 | 144,755,902 | ||
Net income (loss) | |||||
Other comprehensive income | |||||
Share-based compensation | $ 3,687,951 | $ 1,792,819 | 1,881,401 | ||
Options Exercised | $ 275,671 | $ 37,065 | 38,860 | ||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively | $ 27,993,109 | $ 54,619,447 | |||
Capital injection from noncontrolling shareholders | 1,275,845 | ||||
Balance | 236,358,070 | 203,125,494 | 146,676,163 | ||
Parent Company [Member] | Retained earnings (accumulated losses) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | (16,018,293) | (32,667,469) | 38,276,015 | ||
Net income (loss) | $ 12,956,889 | $ 16,649,176 | (70,943,484) | ||
Other comprehensive income | |||||
Share-based compensation | |||||
Options Exercised | |||||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Balance | $ 3,061,404 | $ (16,018,293) | (32,667,469) | ||
Parent Company [Member] | Accumulated other comprehensive income [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Balance | $ 20,037,183 | $ 23,699,196 | 19,551,006 | ||
Net income (loss) | |||||
Other comprehensive income | $ (11,256,870) | $ (3,662,013) | 4,148,190 | ||
Share-based compensation | |||||
Options Exercised | |||||
Deconsolidation of Daqo New Material Co., Ltd. | |||||
Balance | $ 8,780,313 | $ 20,037,183 | $ 23,699,196 |
FINANCIAL STATEMENT SCHEDULE 83
FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CHANGES IN EQUITY) (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
FINANCIAL STATEMENT SCHEDULE I [Abstract] | ||
Follow-on equity offering, issuance costs | $ 2,033,041 | $ 3,375,553 |
FINANCIAL STATEMENT SCHEDULE 84
FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CASH FLOWS) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||||
Net income (loss) | $ 12,956,889 | $ 16,649,176 | $ (70,943,484) | ||
Share-based compensation | 3,687,951 | 1,792,819 | 1,881,401 | ||
Adjustments to reconcile net income to net cash used in operating activities: | |||||
Prepaid expenses and other current assets | 30,465 | 10,217,835 | 29,616 | ||
Amount due to related parties | 2,178,445 | $ (453,075) | (415,960) | ||
Income tax payable | 940,732 | (160,480) | |||
Amount due from related party | 5,481,362 | $ 2,193,604 | (6,853,965) | ||
Net cash (used in) provided by operating activities | 66,426,213 | $ 45,619,729 | $ (16,525,817) | ||
Investing activities: | |||||
Disposition of minority interest in subsidiary | 5,110,085 | ||||
Net cash used in investing activities | (74,132,349) | $ (90,589,032) | $ (30,696,113) | ||
Financing activities: | |||||
Repurchase of ordinary shares | (1,350,164) | ||||
Proceeds from follow-on equity offering | 30,030,000 | $ 58,000,000 | |||
Insurance cost for follow-on equity offering | $ (2,000,000) | $ (3,400,000) | (2,033,041) | (3,375,553) | |
Proceeds from options exercised | 275,783 | 37,080 | $ 135,171 | ||
Net cash provided by financing activities | 15,242,079 | 44,271,754 | 48,826,684 | ||
Net increase (decrease) in cash and cash equivalents | 7,421,528 | (762,601) | 1,152,060 | ||
Cash and cash equivalents at the beginning of the year | 7,068,483 | 7,831,084 | 6,679,024 | ||
Cash and cash equivalents at the end of the year | 14,490,011 | 7,068,483 | 7,831,084 | ||
Parent Company [Member] | |||||
Operating activities: | |||||
Net income (loss) | 12,956,889 | 16,649,176 | (70,943,484) | ||
Share of results of subsidiaries | (17,088,195) | (19,391,427) | 67,890,514 | ||
Share-based compensation | 3,687,951 | 1,792,819 | 1,881,401 | ||
Adjustments to reconcile net income to net cash used in operating activities: | |||||
Prepaid expenses and other current assets | 11,099 | (27,195) | 344,717 | ||
Changes in other current liabilities | (96,166) | (26,901) | $ 137,390 | ||
Amount due to related parties | (286,526) | $ 286,526 | |||
Income tax payable | 108,992 | ||||
Net cash (used in) provided by operating activities | (705,956) | $ (717,002) | $ (689,462) | ||
Investing activities: | |||||
Capital contributed to subsidiaries | $ (33,256,774) | $ (54,638,421) | |||
Cash collected from subsidiaries when liquidation | $ 71,503 | ||||
Disposition of minority interest in subsidiary | $ 5,110,085 | ||||
Net cash used in investing activities | (28,146,689) | $ (54,638,421) | $ 71,503 | ||
Financing activities: | |||||
Repurchase of ordinary shares | (1,350,164) | ||||
Proceeds from follow-on equity offering | 30,030,000 | $ 58,000,000 | |||
Insurance cost for follow-on equity offering | (2,033,041) | (3,375,553) | |||
Proceeds from options exercised | 275,783 | 37,080 | $ 135,171 | ||
Net cash provided by financing activities | 26,922,578 | 54,661,527 | 135,171 | ||
Net increase (decrease) in cash and cash equivalents | (1,930,067) | (693,896) | (482,788) | ||
Cash and cash equivalents at the beginning of the year | 4,493,150 | 5,187,046 | 5,669,834 | ||
Cash and cash equivalents at the end of the year | $ 2,563,083 | $ 4,493,150 | $ 5,187,046 |