RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2017

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 Co., Ltd. (“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
Xinjiang Daqo 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
Shanghai Sailfar Electric Technology Co., Ltd. (“Daqo Sailfar”)		An affiliated company which is 100% held by Daqo Group
Jiangsu Daquan High Voltage Switchgear Co., Ltd.( “Jiangsu Daquan High Voltage”)		An affiliated company which is 75% held by Daqo Group
Jiangsu Daqo Kai-fan Electric Co., Ltd. ( “Jiangsu Daqo Kai-fan”)		An affiliated company which is 100% held by Daqo Group
Zhenjiang Electric Equipment Co., Ltd. ( “Zhenjiang Electric”)		An affiliated company which is 100% held by Daqo Group
Jiangsu Daqo ETE Electronic Systerm Co., Ltd.(“Jiangsu Daqo ETE Electronic”)		An affiliated company which is 75% held by Daqo Group
Jiangsu Daquan Kai-fan Switchgear Co., Ltd (“Jiangsu Daquan Kai-fan Switchgear”)		An affiliated company which is 100% held by Daqo Group
Nanjing Yidian Huichuang information technology Co., Ltd (“Nanjing Yidian”)		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. The balances are as follows:

	December 31,
	2016		2017
Amounts due from related parties
Zhenjiang Daqo	$	1,449,824	$	8,585,337
Others		78,888		412,102
Total	$	1,528,712	$	8,997,439

The balances due to related parties mainly included payables to Chongqing Daqo Tailai and Nanjing Daqo Transformer for purchases of machines for polysilicon expansion, and payables to Daqo New Material for rental expenses as of December 31, 2017.

The balances are payable on demand and are as follows:

	December 31,
	2016		2017
Amounts due to related parties
Daqo Group	$	15,076,133	$	6,075
Daqo New Material		8,323,271		6,014,190
Xinjiang Daqo Investment		79,197		84,541
Chongqing Daqo Tailai		2,107,488		494,954
Nanjing Daqo Transformer		1,022,075		168,774
Others		221,441		1,364

Total	$	26,829,605	$	6,769,898

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

	Transaction	Year Ended December 31,
Name of Related parties	Nature	2015		2016		2017
Daqo Group	Proceeds from interest free loans		15,043,550		—		2,696,513
	Repayment of interest free loans		20,217,257		10,974,807		2,696,513
	Repayment of interest bearing loan		—		15,059,000		15,495,451
	Interest charged		—		850,380		440,368
	Rental expense		—		27,997		37,756
Zhenjiang Daqo	Sales		11,111,239		11,194,197		13,442,273
Daqo Solar	Sales		783,705		—		—
	Proceeds from interest free loans		127,060,826		60,300,896		40,089,689
	Repayment of interest free loans		151,990,672		68,766,506		40,388,195
Nanjing Daqo	Proceeds from interest free loans		13,456,861		—		—
	Repayment of interest free loans		13,456,861		—		—
Xinjiang Daqo Investment	Proceeds from interest free loans		72,946,700		56,270,085		14,356,000
	Repayment of interest free loans		73,252,506		38,715,449		14,356,000
Daqo New Material	Proceeds from interest free loans		11,082,241		9,607,344		6,029,877
	Repayment of interest free loans		11,285,114		12,262,592		10,818,493
	Purchase-Fixed assets		—		—		7,390,693
	Rental expense		1,050,661		993,894		976,800
Chongqing Daqo Tailai	Purchase-Fixed assets		375,528		3,534,248		715,361
	Purchase-Raw material		9,938		—		—
	Income from disposal of fixed assets		6,458		—		—
	Proceeds from interest free loans		6,367,640		222,517		—
	Repayment of interest free loans		6,367,640		2,684,783		—
Others subsidiaries under Daqo Group	Repayment of interest free loans		5,296		—		—
	Purchase-Fixed assets		3,488,330		2,120,768		80,240
	Purchase-Raw material		22,817		129,219		17,651
Total	Sales	$	11,894,944	$	11,194,197	$	13,442,273
	Income from disposal of fixed assets	$	6,458	$	—	$	—
	Purchase-Fixed assets	$	3,863,858	$	5,655,016	$	8,186,294
	Purchase-Raw material	$	32,755	$	129,219	$	17,651
	Rental expense	$	1,050,661	$	1,021,891	$	1,014,556
	Interest expense	$	—	$	850,380		440,368
	Proceeds from related parties loans	$	245,957,818	$	126,400,842	$	63,172,079
	Repayment of related parties loans	$	276,575,346	$	148,463,137	$	83,754,652