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FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended
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Dec. 31, 2016
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, 2015 AND 2016 (In U.S. dollars, except share and per share data)
|  | December 31, |
|  | 2015 |  | 2016 |
ASSETS |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,563,083 |  | $ | 2,943,502 |
Prepaid expenses and other current assets |  |  | 193,583 |  |  | 223,559 |
Total current assets |  |  | 2,756,666 |  |  | 3,167,061 |
Investments in subsidiaries |  |  | 238,112,877 |  |  | 267,322,549 |
TOTAL ASSETS |  | $ | 240,869,543 |  | $ | 270,489,610 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  | $ | 406,088 |  | $ | 389,849 |
Amount due to a related party |  |  | - |  |  | — |
Income tax payable |  |  | 108,992 |  |  | — |
Total current liabilities |  |  | 515,080 |  |  | 389,849 |
EQUITY |  |  |  |  |  |  |
Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2015 and 2016; 279,214,103 and 279,214,103 shares issued as of December 31, 2015 and 2016, respectively and 260,836,578 and 262,956,278 shares outstanding as of December 31, 2015 and 2016, respectively) |  |  | 26,320 |  |  | 26,532 |
Additional paid in capital |  |  | 236,358,070 |  |  | 240,111,533 |
Retained Earnings (accumulated deficit) |  |  | (3,061,404) |  |  | 40,432,352 |
Accumulated other comprehensive income (loss) |  |  | 8,780,313 |  |  | (8,721,820) |
Treasury stock |  |  | (1,748,836) |  |  | (1,748,836) |
Total shareholders’ equity |  |  | 240,354,463 |  |  | 270,099,761 |
TOTAL LIABILITIES AND EQUITY |  | $ | 240,869,543 |  | $ | 270,489,610 |
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, 2014, 2015 AND 2016 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
OPERATING EXPENSES |  |  |  |  |  |  |  |  |  |
General and administrative |  | $ | (2,738,085) |  | $ | (4,142,634) |  | $ | (3,175,482) |
Research and development |  |  | (12,310) |  |  | - |  |  | - |
Total operating expenses |  |  | (2,750,395) |  |  | (4,142,634) |  |  | (3,175,482) |
LOSS FROM OPERATION |  |  | (2,750,395) |  |  | (4,142,634) |  |  | (3,175,482) |
Interest income |  |  | 8,144 |  |  | 1,641 |  |  | - |
Exchange gain |  |  | - |  |  | 118,679 |  |  | - |
Income tax expense |  |  | - |  |  | (108,992) |  |  | - |
Other income |  |  | - |  |  | - |  |  | - |
NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES |  |  | (2,742,251) |  |  | (4,131,306) |  |  | (3,175,482) |
Equity in earnings of subsidiaries |  |  | 19,391,427 |  |  | 17,088,195 |  |  | 46,669,238 |
Net income attributable to Daqo New Energy Corporation ordinary shareholders |  | $ | 16,649,176 |  | $ | 12,956,889 |  | $ | 43,493,756 |
Other comprehensive (loss) income: |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments |  |  | (3,662,013) |  |  | (11,256,870) |  |  | (17,502,133) |
Total other comprehensive loss |  |  | (3,662,013) |  |  | (11,256,870) |  |  | (17,502,133) |
Comprehensive income |  | $ | 12,987,163 |  | $ | 1,700,019 |  | $ | 25,991,623 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2014, 2015 AND 2016 (In U.S. dollars, except share and per share data)
|  |  |  |  |  |  |  |  | Accumulated |  |  |
|  |  |  |  |  |  | Retained |  | other |  |  |
|  |  |  |  | Additional |  | earnings (accumulated) |  | comprehensive |  |  |
|  | Ordinary shares |  | Treasury Stock |  | paid in capital |  | losses) |  | income (loss) |  | Total |
|  | Number |  | $ |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2014 |  |  | 173,427,853 |  | $ | 17,343 |  | $ | (398,672) |  | $ | 146,676,163 |  | $ | (32,667,469) |  | $ | 23,699,196 |  | $ | 137,326,561 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16,649,176 |  |  |  |  |  | 16,649,176 |
Other comprehensive loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,662,013) |  |  | (3,662,013) |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 1,792,819 |  |  |  |  |  |  |  |  | 1,792,819 |
Option Exercised |  |  | 150,000 |  |  | 15 |  |  |  |  |  | 37,065 |  |  |  |  |  |  |  |  | 37,080 |
Follow-on equity offering, net of issuance cost of $3,375,553 |  |  | 50,000,000 |  |  | 5,000 |  |  |  |  |  | 54,619,447 |  |  |  |  |  |  |  |  | 54,624,447 |
Balance at December 31, 2014 |  |  | 223,577,853 |  |  | 22,358 |  |  | (398,672) |  |  | 203,125,494 |  |  | (16,018,293) |  |  | 20,037,183 |  |  | 206,768,070 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 12,956,889 |  |  |  |  |  | 12,956,889 |
Other comprehensive loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,256,870) |  |  | (11,256,870) |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 3,687,951 |  |  |  |  |  |  |  |  | 3,687,951 |
Option Exercised |  |  | 1,115,625 |  |  | 112 |  |  |  |  |  | 275,671 |  |  |  |  |  |  |  |  | 275,783 |
Follow-on equity offering, net of issuance costs of $2,033,041 |  |  | 38,500,000 |  |  | 3,850 |  |  |  |  |  | 27,993,109 |  |  |  |  |  |  |  |  | 27,996,959 |
Repurchase of Stock |  |  | (2,356,900) |  |  |  |  |  | (1,350,164) |  |  |  |  |  |  |  |  |  |  |  | (1,350,164) |
Capital injection from noncontrolling shareholders |  |  |  |  |  |  |  |  |  |  |  | 1,275,845 |  |  |  |  |  |  |  |  | 1,275,845 |
Balance at December 31, 2015 |  |  | 260,836,578 |  |  | 26,320 |  |  | (1,748,836) |  |  | 236,358,070 |  |  | (3,061,404) |  |  | 8,780,313 |  |  | 240,354,463 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 43,493,756 |  |  |  |  |  | 43,493,756 |
Other comprehensive loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (17,502,133) |  |  | (17,502,133) |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 2,702,089 |  |  |  |  |  |  |  |  | 2,702,089 |
Option Exercised |  |  | 2,119,700 |  |  | 212 |  |  |  |  |  | 1,051,374 |  |  |  |  |  |  |  |  | 1,051,586 |
Balance at December 31, 2016 |  |  | 262,956,278 |  |  | 26,532 |  |  | (1,748,836) |  |  | 240,111,533 |  |  | 40,432,352 |  |  | (8,721,820) |  |  | 270,099,761 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2014, 2015 AND 2016 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
OPERATING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Net (loss) income |  | $ | 16,649,176 |  | $ | 12,956,889 |  | $ | 43,493,756 |
Share of results of subsidiaries |  |  | (19,391,427) |  |  | (17,088,195) |  |  | (46,669,238) |
Share-based compensation |  |  | 1,792,819 |  |  | 3,687,951 |  |  | 2,702,089 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  | (27,195) |  |  | 11,099 |  |  | (29,976) |
Changes in other current liabilities |  |  | (26,901) |  |  | (96,166) |  |  | (58,806) |
Amount due to a related party |  |  | 286,526 |  |  | (286,526) |  |  | — |
Income tax payable |  |  | — |  |  | 108,992 |  |  | (108,992) |
Net cash used in operating activities |  |  | (717,002) |  |  | (705,956) |  |  | (671,167) |
INVESTING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Capital contributed to subsidiaries |  |  | (54,638,421) |  |  | (33,256,774) |  |  | — |
Cash collected from subsidiaries when liquidation |  |  | — |  |  | — |  |  | — |
Disposition of minority interest in subsidiary |  |  | — |  |  | 5,110,085 |  |  | — |
Net cash used in investing activities |  |  | (54,638,421) |  |  | (28,146,689) |  |  | — |
FINANCING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Repurchase of ordinary shares |  |  | — |  |  | (1,350,164) |  |  | — |
Proceeds from follow-on equity offering |  |  | 58,000,000 |  |  | 30,030,000 |  |  | — |
Insurance cost for follow-on equity offering |  |  | (3,375,553) |  |  | (2,033,041) |  |  | — |
Proceeds from options exercised |  |  | 37,080 |  |  | 275,783 |  |  | 1,051,586 |
Net cash provided by financing activities |  |  | 54,661,527 |  |  | 26,922,578 |  |  | 1,051,586 |
NET DECREASE IN CASH AND CASH EQUIVALENTS |  |  | (693,896) |  |  | (1,930,067) |  |  | 380,419 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |  |  | 5,187,046 |  |  | 4,493,150 |  |  | 2,563,083 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD |  | $ | 4,493,150 |  | $ | 2,563,083 |  | $ | 2,943,502 |
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 Group. No dividend was paid by the Company's subsidiaries to their parent company in 2016.
| 4. | As of December 31, 2016, 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.

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