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RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended
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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% held by Daqo Group
Daqo Solar Co. Ltd (“Daqo Solar”) |  | An affiliated company which is 100% held by Daqo Group
Nanjing Daqo New Energy Co.,Ltd.(“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”) 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% held by Daqo Group An affiliated company which is 75% held by Daqo Group An affiliated company which is 100% held by Daqo Group An affiliated company which is 100% held by Daqo Group
(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 and $11,102, respectively.
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 Daqo Tailai |  | 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 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.

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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 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 2: 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 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 FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 Reference 5: 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 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A + Details
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