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NON-CONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2023

NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS

9. NON-CONTROLLING INTERESTS

In July 2021, the Group’s major operational subsidiary Xinjiang Daqo completed its IPO in China and started trading on the Shanghai Stock Exchange’s Sci-Tech Innovation Board. The IPO raised net proceeds of approximately $935.0 million, of which, $344.3 million was recorded in non-controlling interest and $590.7 million was recorded in additional paid-in capital. Following the IPO, the Company holds approximately a total ownership of 80.7% of Xinjiang Daqo, directly and indirectly. Xinjiang Daqo’s non-controlling interests’ ownership of the subsidiary changed from 4.40% to 19.30% due to the IPO.

In June 2022, Xinjiang Daqo completed its follow-on private offering in China. The offering raised net proceeds of $1.63 billion, of which, $742.8 million was recorded in the non-controlling interest and $878.8 million was recorded in the additional paid in capital. Following the private offering, the Company holds approximately a total ownership of 72.68% of Xinjiang Daqo, directly and indirectly. The non-controlling interests’ ownership of the subsidiary changed to 27.32% due to the private offering.

In September 2023, the non-controlling interests’ ownership of Xinjiang Daqo changed to 27.53% due to the exercise of 7,541,500 PRC stock options (Note 10) by its employees. As of December 31, 2023, Xinjiang Daqo has repurchased 7,555,655 shares for a total of RMB 259.9 million under its share repurchase program. The non-controlling interests’ ownership of Xinjiang Daqo declined to 27.32% due to the repurchase.

The following schedule shows the effects of changes in the Company’s ownership interest in less than wholly owned subsidiaries on equity attributable to Daqo New Energy Corp. shareholders:

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​	​	​	​	​	​	​	​	​	​
​	​	Year ended December 31,
​		​	2021		​	2022		​	2023
Net income attributable to Daqo New Energy Corp. shareholders	​	$	748,924	​	$	1,819,801	​	$	429,545
Transfers from the non-controlling interests:	​		​	​	​	​	​	​	​
Decrease in the Company’s paid-in capital from acquisition of non-controlling interest	​		—	​	​	(386)	​	​	—
Increase in the Company’s paid-in capital from subsidiary’s offering of its equity interests to third parties (including exercise of stock options)	​		594,301	​	​	878,768	​	​	5,401
Decrease in the Company’s paid-in capital from repurchase of shares by subsidiary	​	​	—	​	​	—	​	​	(26,281)
Net transfers from (to) non-controlling interests	​	​	594,301	​	​	878,382	​	​	(20,880)
Change from net income attributable to Daqo New Energy Corp. shareholders and transfers from (to) non-controlling interests	​		1,343,225	​	​	2,698,183	​	​	408,665

​

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- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//810/tableOfContent

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- References

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