RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

12 Months Ended

Dec. 31, 2012

The balances due from related parties include consideration for the transfer of 100% ownership of Nanjing Daqo to Daqo Group. Such balances are unsecured, interest-free, and are payable on demand. The balances are as follows:


	December 31,
	2011		2012
Amount due from related party
Zhenjiang Daqo	$	7,462,697	$	10,744
Daqo Group		2,294,988		6,440,129
Others		129,625		111,614

Total	$	9,887,310	$	6,562,487

Balance due to related parties include payables for prepayment of polysilicon procurement from Daqo Solar and Xinjiang Daqo Investment and interest bearing loan lent from to Nanjing Daqo. The balances are as follows:


	December 31,
	2011		2012
Amount due to related party
Daqo Group	$	-	$	5,359,008
Xinjiang Daqo Investment		-		2,354,620
Nanjing Daqo		-		1,645,923
Daqo Solar		1,552,126		13,497,972
Others		1,607,230		850,840

Total	$	3,159,356	$	23,708,363

Schedule of Related Party Transactions

The transactions with Daqo Group and its subsidiaries were as follows:


	Transaction Nature	Year Ended December 31,
Name of Related parties	Transaction Nature	2010		2011		2012
Daqo Group	Sales	$	-	$	1,971	$	-
	Purchase-Fixed asset		-		15,787,658		7,849,533
	Financing-cash in		-		3,095,120		-
	Financing-cash out		-		3,095,120		-
	Disposition of 100% equity interest of Nan Jing Daqo		-		-		9,888,742
	Prepayment for purchase of fixed assets		-		-		1,330,044
Zhenjiang Daqo	Sales		-		6,958,317		2,799,428
	Purchase of cells		-		3,314,115		-
	Processing fee		-		1,209,769		-
Daqo Solar	Purchase-Fixed asset		12,942,750		20,562,272		-
	Prepayment received		-		-		13,497,973
	Financing-cash in		-		72,199,600		-
	Financing-cash out		-		72,199,600		-
	Interest charged		-		1,552,126		-
	Short-term interest free loan extended to Daqo Solar		-		9,898,458		-
Nanjing Daqo	Sales		-		-		80,126
	Related party interest bearing loan		-		-		1,584,820
	Interest charged		-		-		40,611
Xinjiang Daqo Investment	Prepayment received		-		-		2,354,620
Others subsidiaries under Daqo Group	Sales		-		427,302		-
	Purchase-Fixed asset		989,235		2,027,001		202,556
	Purchase-Raw material				300,574		5,282
	Rental expense		32,136		612,856		-
	Service expense		-		71,426		-

Total	Sales	$	-	$	7,387,590	$	2,799,428

	Disposition of 100% equity interest in Nanjing Daqo	$	-	$	-	$	9,888,742

	Purchase-Fixed asset	$	13,931,985	$	38,376,931	$	8,052,089

	Purchase-Raw material	$	-	$	3,614,689	$	5,282

	Processing fee	$	-	$	1,209,769	$	-

	Rental expense	$	32,136	$	612,856	$	-

	Service expense	$	-	$	71,426	$	-

	Interest expense	$	-	$	1,552,126	$	40,611

	Prepayment received	$	-	$	-	$	15,852,593

	Prepayment for purchase of fixed assets	$	-	$	-	$	1,330,044

	Cash received	$	-	$	75,294,720	$	1,584,820

	Cash paid	$	-	$	85,193,178	$	-