XML 43 R30.htm IDEA: XBRL DOCUMENT
v2.4.0.6

FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended
--- | ---
Dec. 31, 2012
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, 2011 AND 2012 (In U.S. dollars, except share data)
|  | December 31, |
|  | 2011 |  |  | 2012 |
ASSETS |  |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 3,291,387 |  |  | $ | 5,669,834 |
Prepaid expenses and other current assets |  |  | 562,500 |  |  |  | 593,707 |
Amount due from related party |  |  | - |  |  |  | 5,110,085 |
Total current assets |  |  | 3,853,887 |  |  |  | 11,373,626 |
Investments in subsidiaries, net |  |  | 307,534,867 |  |  |  | 190,945,888 |
TOTAL ASSETS |  | $ | 311,388,754 |  |  | $ | 202,319,514 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  | $ | - |  |  | $ | 214,231 |
Amount due to related party |  |  | 210,523 |  |  |  | - |
Total current liabilities |  |  | 210,523 |  |  |  | 214,231 |
EQUITY |  |  |  |  |  |  |  |
Ordinary shares ($0.0001 par value; 500,000,000 shares authorized as of December 31, 2011 and 2012; 175,714,103 and 175,714,103 shares issued as of December 31, 2011 and 2012, respectively and 175,714,103 and 172,877,433 shares outstanding as of December 31, 2011 and 2012, respectively) |  |  | 17,571 |  |  |  | 17,288 |
Additional paid in capital |  |  | 142,511,581 |  |  |  | 144,755,902 |
Retained earnings |  |  | 150,204,956 |  |  |  | 38,276,015 |
Accumulated other comprehensive income |  |  | 18,444,123 |  |  |  | 19,551,006 |
Treasury stock |  |  | - |  |  |  | (494,928 | )
Total shareholders' equity |  |  | 311,178,231 |  |  |  | 202,105,283 |
TOTAL LIABILITIES AND EQUITY |  | $ | 311,388,754 |  |  | $ | 202,319,514 |
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, 2010, 2011 AND 2012 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2010 |  |  | 2011 |  |  | 2012 |
OPERATING EXPENSES |  |  |  |  |  |  |  |  |  |  |  |
General and administrative |  | $ | (3,791,827 | ) |  | $ | (2,355,174 | ) |  | $ | (3,528,728 | )
Research and development |  |  | (96,827 | ) |  |  | (75,508 | ) |  |  | (175,242 | )
Total operating expenses |  |  | (3,888,654 | ) |  |  | (2,430,682 | ) |  |  | (3,703,970 | )
LOSS FROM OPERATION |  |  | (3,888,654 | ) |  |  | (2,430,682 | ) |  |  | (3,703,970 | )
Interest income |  |  | - |  |  |  | 24,852 |  |  |  | 3,074 |
NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES |  |  | (3,888,654 | ) |  |  | (2,405,830 | ) |  |  | (3,700,896 | )
Equity in earnings of subsidiaries |  |  | 72,459,911 |  |  |  | 35,729,782 |  |  |  | (108,228,045 | )
NET INCOME (LOSS) |  | $ | 68,571,257 |  |  | $ | 33,323,952 |  |  | $ | (111,928,941 | )
Deemed dividend on Series A convertible redeemable preferred shares |  |  | (3,300,000 | ) |  |  | - |  |  |  | - |
Net income (loss) attributable to Daqo New Energy Corporation ordinary shareholders |  | $ | 65,271,257 |  |  | $ | 33,323,952 |  |  | $ | (111,928,941 | )
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments |  |  | 5,659,570 |  |  |  | 12,167,255 |  |  |  | 2,206,182 |
Total other comprehensive income |  |  | 5,659,570 |  |  |  | 12,167,255 |  |  |  | 2,206,182 |
Comprehensive income (loss) |  | $ | 74,230,827 |  |  | $ | 45,491,207 |  |  | $ | (109,722,759 | )
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2010, 2011 AND 2012 (In U.S. dollars, except share data)
|  | Ordinary shares |  |  | Treasury Stock |  |  | Additional paid in capital |  |  | Retained earnings |  |  | Accumulated other comprehensive income |  |  | Total |
|  | Number |  |  | $ |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2010 |  |  | 100,000,000 |  |  | $ | 10,000 |  |  | $ | - |  |  | $ | 258,583 |  |  | $ | 51,609,747 |  |  | $ | 617,298 |  |  | $ | 52,495,628 |
Net income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 68,571,257 |  |  |  | - |  |  |  | 68,571,257 |
Other comprehensive income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,659,570 |  |  |  | 5,659,570 |
Share-based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,614,756 |  |  |  | - |  |  |  | - |  |  |  | 1,614,756 |
Deemed dividend on Series A convertible redeemable preferred shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,300,000 | ) |  |  | - |  |  |  | (3,300,000 | )
Conversion of series A convertible redeemable preferred shares into ordinary shares |  |  | 29,714,103 |  |  |  | 2,971 |  |  |  | - |  |  |  | 58,899,769 |  |  |  | - |  |  |  | - |  |  |  | 58,902,740 |
Issuance of ordinary shares in the initial public offering (net of commission and issuance cost of $7,867,552) |  |  | 46,000,000 |  |  |  | 4,600 |  |  |  | - |  |  |  | 79,532,448 |  |  |  | - |  |  |  | - |  |  |  | 79,537,048 |
Balance at December 31, 2010 |  |  | 175,714,103 |  |  |  | 17,571 |  |  |  | - |  |  |  | 140,305,556 |  |  |  | 116,881,004 |  |  |  | 6,276,868 |  |  |  | 263,480,999 |
Net income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 33,323,952 |  |  |  | - |  |  |  | 33,323,952 |
Other comprehensive income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,167,255 |  |  |  | 12,167,255 |
Share-based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,206,025 |  |  |  | - |  |  |  | - |  |  |  | 2,206,025 |
Balance at December 31, 2011 |  |  | 175,714,103 |  |  | $ | 17,571 |  |  | $ | - |  |  | $ | 142,511,581 |  |  | $ | 150,204,956 |  |  | $ | 18,444,123 |  |  | $ | 311,178,231 |
Net loss |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (111,928,941 | ) |  |  | - |  |  |  | (111,928,941 | )
Other comprehensive income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,206,182 |  |  |  | 2,206,182 |
Share-based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,249,834 |  |  |  | - |  |  |  | - |  |  |  | 2,249,834 |
Repurchase |  |  | (2,836,670 | ) |  |  | (283 | ) |  |  | (494,928 | ) |  |  | (5,513 | ) |  |  | - |  |  |  | - |  |  |  | (500,724 | )
Deconsolidation of Nanjing Daqo New Energy Co., Ltd |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,099,299 | ) |  |  | (1,099,299 | )
Balance at December 31, 2012 |  |  | 172,877,433 |  |  | $ | 17,288 |  |  | $ | (494,928 | ) |  | $ | 144,755,902 |  |  | $ | 38,276,015 |  |  | $ | 19,551,006 |  |  | $ | 202,105,283 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2010, 2011 AND 2012 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2010 |  |  | 2011 |  |  | 2012 |
OPERATING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | 68,571,257 |  |  | $ | 33,323,952 |  |  | $ | (111,928,941 | )
Share of results of subsidiaries |  |  | (72,459,911 | ) |  |  | (35,729,782 | ) |  |  | 108,228,045 |
Share-based compensation |  |  | 1,614,756 |  |  |  | 2,206,025 |  |  |  | 2,249,834 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  | 1,603,280 |  |  |  | (142,001 | ) |  |  | (31,207 | )
Changes in other current liabilities |  |  | (1,084,748 | ) |  |  | (916,531 | ) |  |  | 214,231 |
Amount due from related party |  |  | - |  |  |  | - |  |  |  | (210,523 | )
Net cash used in operating activities |  |  | (1,755,366 | ) |  |  | (1,258,337 | ) |  |  | (1,478,561 | )
INVESTING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |
Capital contributed to subsidiaries |  |  | (33,199,062 | ) |  |  | (37,990,278 | ) |  |  | (4,811,175 | )
Receivable from investee |  |  | - |  |  |  | 162,981 |  |  |  | - |
Cash collected from Daqo Canada |  |  | - |  |  |  | - |  |  |  | 4,390,250 |
Disposition of Nanjing Daqo |  |  | - |  |  |  | - |  |  |  | 4,778,657 |
Cash used in investing activities |  |  | (33,199,062 | ) |  |  | (37,827,297 | ) |  |  | 4,357,732 |
FINANCING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |
Repurchase of ordinary shares |  |  | - |  |  |  | - |  |  |  | (500,724 | )
Repayment of other long-term borrowings |  |  | (7,130,000 | ) |  |  | - |  |  |  | - |
Cash proceeds from issuance of ordinary share |  |  | 80,982,000 |  |  |  | - |  |  |  | - |
Issuance cost of ordinary shares |  |  | (1,444,953 | ) |  |  | - |  |  |  | - |
Cash provided by financing activities |  |  | 72,407,047 |  |  |  | - |  |  |  | (500,724 | )
NET INCREASE IN CASH AND CASH EQUIVALENTS |  |  | 37,452,619 |  |  |  | (39,085,634 | ) |  |  | 2,378,447 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |  |  | 4,924,402 |  |  |  | 42,377,021 |  |  |  | 3,291,387 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD |  | $ | 42,377,021 |  |  | $ | 3,291,387 |  |  | $ | 5,669,834 |
Supplemental disclosure of cash flow information: |  |  |  |  |  |  |  |  |  |  |  |
Disposition of Nanjing Daqo: |  |  |  |  |  |  |  |  |  |  |  |
Total consideration |  | $ | - |  |  | $ | - |  |  | $ | 9,888,742 |
Less: amount due from Daqo Group |  |  | - |  |  |  | - |  |  |  | (5,110,085 | )
Total cash consideration received |  | $ | - |  |  | $ | - |  |  | $ | 4,778,657 |
Supplemental schedule of non-cash financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Conversion of Series A convertible redeemable preferred shares into ordinary shares |  | $ | 58,902,740 |  |  | $ | - |  |  | $ | - |
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 Company.
4. | As of December 31, 2012, 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.

X
- Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration