RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

12 Months Ended

Dec. 31, 2013

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

	December 31,
	2012		2013
Amount due from related party
Zhenjiang Daqo	$	10,744	$	6,898,980
Daqo Group		6,440,129		6,465,561
Others		111,614		51,911

Total	$	6,562,487	$	13,416,452

Balances due to related parties related to interest free loans received primarily for working capital purposes from Daqo Solar and Xinjiang Daqo Investment, wholly-owned subsidiaries of Daqo Group. The balances are payable on demand and are as follows:

	December 31,
	2012		2013
Amount due to related party
Daqo Group	$	5,359,007	$	461,796
Xinjiang Daqo Investment		2,354,620		18,482,300
Nanjing Daqo		1,645,923		1,651,810
Daqo Solar		13,497,973		66,750,009
Others		850,840		1,191,875

Total	$	23,708,363	$	88,537,790

Schedule of Related Party Transactions

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

	Transaction	Year Ended December 31,
Name of Related parties	Nature	2011		2012		2013
Daqo Group	Sales	$	1,971	$	-	$	-
	Purchase-Fixed asset		15,787,658		7,849,533		-
	Financing-cash in		3,095,120		-		813,105
	Financing-cash out		3,095,120		-		813,105
	Disposition of 100% equity interest of Nan Jing Daqo		-		9,888,742		-
Zhenjiang Daqo	Sales		6,958,317		2,799,428		13,471,866
	Purchase of cells		3,314,115		-		-
	Processing fee		1,209,769		-		-
Daqo Solar	Purchase-Fixed asset		20,562,272		-		-
	Prepayment received		-		13,497,973		-
	Financing-cash in		72,199,600		-		76,881,392
	Financing-cash out		72,199,600		-		28,379,678
	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		-
	Financing-cash in		-		-		58,389,643
	Financing-cash out		-		-		40,193,785
Others subsidiaries under Daqo Group	Sales		427,302		-		-
	Purchase-Fixed asset		2,027,001		202,556		157,742
	Purchase-Raw material		300,574		5,282		-
	Rental expense		612,856		-		-
	Service expense		71,426		-		-
Total	Sales	$	7,387,590	$	2,799,427	$	13,471,866
	Disposition of 100% equity interest in Nanjing Daqo	$	-	$	9,888,742	$	-
	Purchase-Fixed asset	$	38,376,931	$	8,052,089	$	157,742
	Purchase-Raw material	$	3,614,689	$	5,282	$	-
	Processing fee	$	1,209,769	$	-	$	-
	Rental expense	$	612,856	$	-	$	-
	Service expense	$	71,426	$	-	$	-
	Interest expense	$	1,552,126	$	40,611	$	-
	Prepayment received*	$	-	$	15,852,593	$	-
	Proceeds from interest free loans	$	75,294,720	$	1,584,820	$	136,084,140
	Repayment of interest free loans	$	85,193,178	$	-	$	69,386,568

* Prepayment has been considered a related party loan given there has been no deliveries since the prepayment was provided.