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RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended
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Dec. 31, 2014
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract] |
RELATED PARTY TRANSACTIONS AND BALANCES | 15. 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% held by Daqo Group
Daqo Solar Co. Ltd (“Daqo Solar”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Daqo |  | An affiliated company which was 100% held by the Group before September 28, 2012 and is 100% held by Daqo Group since September 28, 2012
Daqo Xinjiang Investment Co., Ltd. ("Xinjiang Daqo Investment") |  | An affiliated company which is 100% held by Daqo Group
Daqo New Material Co., Ltd. ("Daqo New Material") |  | An affiliated company which is 100% held by Daqo Group, and was consolidated by the Company as VIE on December 31, 2013
Chongqing Daqo Tailai Electric Co., Ltd. (“Chongqing Daqo Tailai”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Daqo Transformer Systems Co., Ltd. (“Nanjing Daqo Transformer”) |  | An affiliated company which is 100% held by Daqo Group
Jiangsu Daqo Changjiang Electric Co., Ltd. (“Jiangsu Daqo”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Daqo Electric Co., Ltd. (“Nanjing Daqo Electric”) |  | An affiliated company which is 100% held by Daqo Group
Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd. (“Zhenjiang Moeller”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Intelligent Apparatus Co., Ltd. (“Intelligent Apparatus”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Intelligent Software Co., Ltd. (“Intelligent Software”) |  | An affiliated company which is 100% held by Daqo Group
Daqo Investment Co., Ltd. (“Daqo Investment”) |  | An affiliated company which is 100% held by Daqo Group
Shanghai Sailfar Electric Technology Co., Ltd. (“Daqo Sailfar”) |  | An affiliated company which is 100% held by Daqo Group
(2) | Related party balances:
The balance with Daqo Group and its subsidiaries was as follows: The balances due from related parties mainly included the consideration for the transfer of 100% ownership of Nanjing Daqo to Daqo Group and amount due from Zhenjiang Daqo for sales of wafer and polysilicon. Such balances are unsecured, interest-free, and are payable on demand. The balances are as follows:
|  | December 31, |
|  | 2013 |  |  | 2014 |
Amount due from related party |  |  |  |  |  |  |  |
Zhenjiang Daqo |  | $ | 6,898,980 |  |  | $ | 4,551,846 |
Daqo Group |  |  | 6,465,561 |  |  |  | 5,110,085 |
Others |  |  | 51,911 |  |  |  | 325,037 |
Total |  | $ | 13,416,452 |  |  | $ | 9,986,968 |
Interest free loans due to related parties 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, |
|  |  | 2013 |  |  |  | 2014 |
| Amount due to related party |  |  |  |  |  |  |  |
| Daqo Solar |  | $ | 66,750,009 |  |  | $ | 54,275,617 |
| Xinjiang Daqo investment |  |  | 18,482,300 |  |  |  | 23,104,709 |
| Daqo New Material |  |  | 449,988 |  |  |  | 4,950,746 |
| Chongqing Daqo Tailai |  |  | - |  |  |  | 1,755,326 |
| Nanjing Daqo Transformer |  |  | 18,546 |  |  |  | 1,595,659 |
| Daqo Group |  |  | 461,796 |  |  |  | 1,339,128 |
| Jiangsu Daqo |  |  | 46,437 |  |  |  | 1,200,018 |
| Nanjing Daqo |  |  | 1,651,810 |  |  |  | - |
| Nanjing Daqo Electric |  |  | 33,697 |  |  |  | 742,747 |
| Others* |  |  | 643,207 |  |  |  | 734,201 |
| Total |  | $ | 88,537,790 |  |  | $ | 89,698,151 |
* The remaining balance of amount due to related party of $734,201 as of December 31, 2014 was comprised of Zhenjiang Moeller, Intelligent Apparatus, Intelligent Software, Daqo Investment, Daqo Sailfar and Zhenjiang Daqo in the amount of $310,395, $302,807, $54,461, $5,360, $34, and $61,144, respectively.
| (3) | The transactions with Daqo Group and its subsidiaries were as follows:
|  | Transaction |  | Year Ended December 31, |
Name of Related parties |  | Nature |  | 2012 |  |  | 2013 |  |  | 2014 |
Daqo Group |  | Purchase-Fixed asset |  |  | 7,849,533 |  |  |  | — |  |  |  | 486,948 |
|  | Proceeds from interest free loans |  |  | — |  |  |  | 813,105 |  |  |  | 10,821,462 |
|  | Repayment of interest free loans |  |  | — |  |  |  | 813,105 |  |  |  | 8,115,813 |
|  | Disposition of 100% equity interest of Nan Jing Daqo |  |  | 9,888,742 |  |  |  | — |  |  |  | — |
Zhenjiang Daqo |  | Sales |  |  | 2,799,428 |  |  |  | 13,471,866 |  |  |  | 9,554,320 |
Daqo Solar |  | Sales |  |  | — |  |  |  | — |  |  |  | 9,595,680 |
|  | Prepayment received |  |  | 13,497,973 |  |  |  | — |  |  |  | — |
|  | Proceeds from interest free loans |  |  | — |  |  |  | 76,881,392 |  |  |  | 157,241,390 |
|  | Repayment of interest free loans |  |  | — |  |  |  | 28,379,678 |  |  |  | 166,231,092 |
Nanjing Daqo |  | Sales |  |  | 80,126 |  |  |  | — |  |  |  | 112 |
|  | Proceeds from interest free loans |  |  | — |  |  |  | — |  |  |  | 973,898 |
|  | Repayment of interest free loans |  |  | — |  |  |  | — |  |  |  | 2,921,693 |
|  | Related party interest bearing loan |  |  | 1,584,820 |  |  |  | — |  |  |  | — |
|  | Interest charged |  |  | 40,611 |  |  |  | — |  |  |  | — |
Xinjiang Daqo Investment |  | Prepayment received |  |  | 2,354,620 |  |  |  | — |  |  |  | — |
|  | Proceeds from interest free loans |  |  | — |  |  |  | 58,389,643 |  |  |  | 98,367,234 |
|  | Repayment of interest free loans |  |  | — |  |  |  | 40,193,785 |  |  |  | 93,219,846 |
Daqo New Material |  | Proceeds from interest free loans |  |  | — |  |  |  | — |  |  |  | 7,729,501 |
|  | Repayment of interest free loans |  |  | — |  |  |  | — |  |  |  | 4,600,117 |
|  | Rental expense |  |  | — |  |  |  | — |  |  |  | 1,071,287 |
Others subsidiaries under Daqo Group |  | Proceeds from interest free loans |  |  | — |  |  |  | — |  |  |  | 636 |
|  | Purchase-Fixed asset** |  |  | 202,556 |  |  |  | 157,742 |  |  |  | 6,714,476 |
|  | Purchase-Raw material |  |  | 5,282 |  |  |  | — |  |  |  | — |
Total |  | Sales |  | $ | 2,799,427 |  |  | $ | 13,471,866 |  |  | $ | 19,150,112 |
|  | Disposition of 100% equity interest in Nanjing Daqo |  | $ | 9,888,742 |  |  | $ | — |  |  | $ | — |
|  | Purchase-Fixed asset |  | $ | 8,052,089 |  |  | $ | 157,742 |  |  | $ | 7,201,424 |
|  | Purchase-Raw material |  | $ | 5,282 |  |  | $ | — |  |  | $ | — |
|  | Rental expense |  | $ | — |  |  | $ | — |  |  | $ | 1,071,287 |
|  | Interest expense |  | $ | 40,611 |  |  | $ | — |  |  | $ | — |
|  | Prepayment received* |  | $ | 15,852,593 |  |  | $ | — |  |  | $ | — |
|  | Proceeds from interest free loans |  | $ | 1,584,820 |  |  | $ | 136,084,140 |  |  | $ | 275,134,122 |
|  | Repayment of interest free loans |  | $ | — |  |  | $ | 69,386,568 |  |  | $ | 275,088,560 |
* |  | Prepayment has been considered a related party loan given there has been no deliveries since the prepayment was provided
** |  | The transactions of $6,714,476 in 2014 were comprised of the purchase of fixed assets from Nanjing Daqo Electric, Nanjing Daqo Transformer, Jiangsu Daqo, Chongqing Daqo Tailai and Intelligence Apparatus in the amount of $763,856, $1,913,941, $1,165,346, $2,724,790 and $146,543, respectively.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 + Details
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