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FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended
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Dec. 31, 2017
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, 2016 AND 2017 (In U.S. dollars, except share and per share data)
|  | December 31, |
|  | 2016 |  | 2017 |
ASSETS |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,943,502 |  | $ | 4,536,809 |
Prepaid expenses and other current assets |  |  | 223,559 |  |  | 700,064 |
Total current assets |  |  | 3,167,061 |  |  | 5,236,873 |
Investments in subsidiaries |  |  | 267,322,549 |  |  | 386,872,629 |
TOTAL ASSETS |  | $ | 270,489,610 |  | $ | 392,109,502 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  | $ | 389,849 |  | $ | 373,915 |
Total current liabilities |  |  | 389,849 |  |  | 373,915 |
EQUITY |  |  |  |  |  |  |
Ordinary shares ($0.0001 par value 500,000,000 shares authorized as of December 31, 2016 and 2017; 279,214,103 and 279,214,103 shares issued as of December 31, 2016 and 2017, respectively and 262,956,278 and 270,918,702 shares outstanding as of December 31, 2016 and 2017, respectively) |  |  | 26,532 |  |  | 27,328 |
Additional paid in capital |  |  | 240,111,533 |  |  | 247,076,428 |
Retained earnings |  |  | 40,432,352 |  |  | 133,273,480 |
Accumulated other comprehensive income (loss) |  |  | (8,721,820) |  |  | 13,107,187 |
Treasury shares |  |  | (1,748,836) |  |  | (1,748,836) |
Total shareholders’ equity |  |  | 270,099,761 |  |  | 391,735,587 |
TOTAL LIABILITIES AND EQUITY |  | $ | 270,489,610 |  | $ | 392,109,502 |
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, 2015, 2016 AND 2017 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2015 |  | 2016 |  | 2017 |
OPERATING EXPENSES |  |  |  |  |  |  |  |  |  |
General and administrative |  | $ | (4,142,634) |  | $ | (3,175,482) |  | $ | (4,987,820) |
Total operating expenses |  |  | (4,142,634) |  |  | (3,175,482) |  |  | (4,987,820) |
LOSS FROM OPERATION |  |  | (4,142,634) |  |  | (3,175,482) |  |  | (4,987,820) |
Interest income |  |  | 1,641 |  |  | - |  |  | - |
Exchange gain |  |  | 118,679 |  |  | - |  |  | - |
Income tax expense |  |  | (108,992) |  |  | - |  |  | - |
NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES |  |  | (4,131,306) |  |  | (3,175,482) |  |  | (4,987,820) |
Equity in earnings of subsidiaries |  |  | 17,088,195 |  |  | 46,669,238 |  |  | 97,828,948 |
Net income attributable to Daqo New Energy Corporation ordinary shareholders |  | $ | 12,956,889 |  | $ | 43,493,756 |  | $ | 92,841,128 |
Other comprehensive (loss) income: |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments |  |  | (11,256,870) |  |  | (17,502,133) |  |  | 21,829,007 |
Total other comprehensive income (loss): |  |  | (11,256,870) |  |  | (17,502,133) |  |  | 21,829,007 |
Comprehensive income |  | $ | 1,700,019 |  | $ | 25,991,623 |  | $ | 114,670,135 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017 (In U.S. dollars, except share and per share data)
|  | Ordinary shares |  | Treasury shares |  | Additional paid in capital |  | Retained earnings (accumulated losses) |  | Accumulated other comprehensive income (loss) |  | Total |
|  | Number |  | $ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2015 |  |  | 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 ordinary shares |  |  | (2,356,900) |  |  |  |  |  | (1,350,164) |  |  |  |  |  |  |  |  |  |  |  | (1,350,164 |
Capital injection from non-controlling 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 exercises |  |  | 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 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 92,841,128 |  |  |  |  |  | 92,841,128 |
Other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21,829,007 |  |  | 21,829,007 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  | 4,200,273 |  |  |  |  |  |  |  |  | 4,200,273 |
Options exercised |  |  | 5,596,050 |  |  | 560 |  |  |  |  |  | 2,764,858 |  |  |  |  |  |  |  |  | 2,765,418 |
Restricted shares vested |  |  | 2,366,374 |  |  | 236 |  |  |  |  |  | (236) |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2017 |  |  | 270,918,702 |  |  | 27,328 |  |  | (1,748,836) |  |  | 247,076,428 |  |  | 133,273,480 |  |  | 13,107,187 |  |  | 391,735,587 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017 (In U.S. dollars)
|  | Year ended December 31, |
|  | 2015 |  | 2016 |  | 2017 |
OPERATING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 12,956,889 |  | $ | 43,493,756 |  | $ | 92,841,128 |
Equity in earnings of subsidiaries |  |  | (17,088,195) |  |  | (46,669,238) |  |  | (97,828,948) |
Share-based compensation |  |  | 3,687,951 |  |  | 2,702,089 |  |  | 4,200,273 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  | 11,099 |  |  | (29,976) |  |  | 50,059 |
Changes in other current liabilities |  |  | (96,166) |  |  | (58,806) |  |  | 91,941 |
Amount due to a related party |  |  | (286,526) |  |  | — |  |  | — |
Income tax payable |  |  | 108,992 |  |  | (108,992) |  |  | — |
Net cash used in operating activities |  |  | (705,956) |  |  | (671,167) |  |  | (645,547) |
INVESTING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Capital contributed to subsidiaries |  |  | (33,256,774) |  |  | — |  |  | — |
Disposition of minority interest in subsidiary |  |  | 5,110,085 |  |  | — |  |  | — |
Net cash used in investing activities |  |  | (28,146,689) |  |  | — |  |  | — |
FINANCING ACTIVITIES |  |  |  |  |  |  |  |  |  |
Repurchase of ordinary shares |  |  | (1,350,164 |  |  | — |  |  | — |
Proceeds from follow-on equity offering |  |  | 30,030,000 |  |  | — |  |  | — |
Insurance cost for follow-on equity offering |  |  | (2,033,041) |  |  | — |  |  | — |
Proceeds from options exercised |  |  | 275,783 |  |  | 1,051,586 |  |  | 2,238,854 |
Net cash provided by financing activities |  |  | 26,922,578 |  |  | 1,051,586 |  |  | 2,238,854 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |  |  | (1,930,067) |  |  | 380,419 |  |  | 1,593,307 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |  |  | 4,493,150 |  |  | 2,563,083 |  |  | 2,943,502 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD |  | $ | 2,563,083 |  | $ | 2,943,502 |  | $ | 4,536,809 |
FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY Notes to Financial Information of Parent Company
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 2017.
4. |  | As of December 31, 2017, there were no material contingencies, significant provisions of long-term obligations, and mandatory dividend or redemption requirements of redeemable shares or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statement, if any.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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