Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Entity Registrant Name | 'CHINA SUNERGY CO., LTD. |
Entity Central Index Key | '0001396247 |
Current Fiscal Year End Date | '--12-31 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 267,287,253 |
Entity Current Reporting Status | 'Yes |
Entity Well-known Seasoned Issuer | 'No |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $54,295,577 | $183,312,417 |
Restricted cash | 194,195,634 | 226,610,884 |
Accounts receivable, net of allowance for doubtful accounts of $63,006,093 and $64,940,205 in 2012 and 2013, respectively | 81,405,181 | 77,188,944 |
Notes receivable | 741,025 | ' |
Advance to suppliers | 7,193,667 | 5,320,346 |
Amounts due from related parties | 83,986,853 | 67,006,828 |
Inventories | 44,657,654 | 83,855,621 |
Project assets | 10,154,775 | 4,761,014 |
Deferred tax assets | 1,922,242 | 1,727,054 |
VAT receivable | 11,222,644 | 18,837,716 |
Restricted cash-collateral account | ' | 2,097,340 |
Convertible senior notes issuance cost | ' | 15,934 |
Prepaid expense and other current assets | 10,274,408 | 7,737,138 |
Total current assets | 500,049,660 | 678,471,236 |
Property, plant and equipment, net | 223,624,186 | 205,706,724 |
Prepaid land use rights | 27,884,740 | 28,547,417 |
Intangible assets, net | ' | 1,986,621 |
Deferred tax assets | 7,490,636 | 5,455,564 |
Other long-term assets | 5,603,724 | 2,917,781 |
TOTAL ASSETS | 764,652,946 | 923,085,343 |
Current liabilities: | ' | ' |
Short-term bank borrowings | 304,827,038 | 463,554,185 |
Current portion of long-term debt | 35,427,888 | 48,865,064 |
Accounts payable | 97,029,603 | 128,347,074 |
Notes payable | 39,899,624 | 38,495,824 |
Amounts due to related parties | 11,797,519 | 70,582,470 |
Accrued payroll and welfare | 3,300,135 | 3,501,553 |
Advance from customers | 5,377,783 | 3,776,384 |
Accrued expenses and other current liabilities | 11,462,484 | 10,121,517 |
Deferred tax liability | 6,133 | 518,592 |
Income tax payable | 3,368,274 | 338,209 |
Collateral account payable | ' | 2,097,340 |
Convertible senior notes | ' | 1,500,000 |
Total current liabilities | 512,496,481 | 771,698,212 |
Long-term debt | 265,975,939 | 122,859,120 |
Deferred tax liability | 444,909 | 437,507 |
Accrued warranty cost | 20,129,274 | 17,163,711 |
Other liabilities | 9,992,788 | 4,606,816 |
Total liabilities | 809,039,391 | 916,765,366 |
Commitments and contingencies (Note 17) | ' | ' |
Equity (deficit): | ' | ' |
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 267,287,253 shares issued and outstanding as of December 31, 2012 and 240,701,253 issued and outstanding as of December 31, 2013) | 24,070 | 26,729 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | ' |
Accumulated deficit | -265,196,150 | -214,587,069 |
Accumulated other comprehensive income | 36,070,581 | 35,523,388 |
Total equity (deficit) attributable to China Sunergy Co. Ltd. | -43,731,798 | 6,330,090 |
Noncontrolling interest | -654,647 | -10,113 |
Total equity (deficit) | -44,386,445 | 6,319,977 |
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $764,652,946 | $923,085,343 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $64,940,205 | $63,006,093 |
Ordinary shares, par value per share | $0.00 | $0.00 |
Ordinary shares, shares authorized | 463,247,600 | 463,247,600 |
Ordinary shares, shares issued | 240,701,253 | 267,287,253 |
Ordinary shares, shares outstanding | 240,701,253 | 267,287,253 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Sales | $316,185,694 | $292,721,361 | $566,291,755 |
Cost of sales | -300,973,705 | -293,914,163 | -564,474,123 |
Gross profit (loss) | 15,211,989 | -1,192,802 | 1,817,632 |
Selling and marketing expenses | -16,416,359 | -20,055,854 | -19,148,678 |
General and administrative expenses | -30,010,529 | -75,874,984 | -41,182,119 |
Research and development expenses | -6,022,357 | -8,608,874 | -6,718,265 |
Goodwill impairment loss | ' | ' | -14,806,586 |
Total operating expenses | -52,449,245 | -104,539,712 | -81,855,648 |
Loss from operations | -37,237,256 | -105,732,514 | -80,038,016 |
Interest expense | -28,805,652 | -28,838,328 | -23,458,361 |
Interest income | 6,586,276 | 6,154,813 | 2,505,432 |
Changes in fair value of derivatives | ' | -369,309 | -5,173,903 |
Other income (expense), net | 8,974,787 | 11,486,938 | -1,899,809 |
Loss before income taxes | -50,481,845 | -117,298,400 | -108,064,657 |
Income tax benefit (expense) | -1,127,627 | -16,295,221 | 13,771,962 |
Net loss | -51,609,472 | -133,593,621 | -94,292,695 |
Less: Net loss attributable to the non-controlling interest | -1,000,391 | -12,957 | ' |
Net loss attributable to ordinary shareholders of China Sunergy Co., Ltd. | -50,609,081 | -133,580,664 | -94,292,695 |
Net income (loss) per share: | ' | ' | ' |
Basic | ($0.20) | ($0.55) | ($0.39) |
Diluted | ($0.20) | ($0.55) | ($0.39) |
Basic and diluted | ($0.20) | ($0.55) | ($0.39) |
Share used in calculating basic income (loss) per share | 255,102,003 | 240,701,253 | 240,701,253 |
Share used in calculating diluted income (loss) per share | 255,102,003 | 240,701,253 | 240,701,253 |
Share used in calculating basic and diluted loss per share | 255,102,003 | 240,701,253 | 240,701,253 |
Third parties [Member] | ' | ' | ' |
Sales | 306,334,566 | 286,889,060 | 556,121,653 |
Cost of sales | -291,372,403 | -288,004,932 | -556,741,244 |
Related parties [Member] | ' | ' | ' |
Sales | 9,851,128 | 5,832,301 | 10,170,102 |
Cost of sales | ($9,601,302) | ($5,909,231) | ($7,732,879) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' |
Net loss | ($51,609,472) | ($133,593,621) | ($94,292,695) |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustments, net of tax impact nil for 2011, 2012 and 2013 | 584,066 | 824,167 | 6,678,512 |
Total comprehensive loss | -51,025,406 | -132,769,454 | -87,614,183 |
Less: Comprehensive loss attributable to noncontrolling interest | -963,518 | -12,913 | ' |
Comprehensive loss attributable to ordinary shareholders of China Sunergy Co., Ltd | ($50,061,888) | ($132,756,541) | ($87,614,183) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Ordinary Shares [Member] | Additional paid-in capital [Member] | Treasury shares [Member] | Retained earnings (accumulated deficit) [Member] | Accumulated other comprehensive income [Member] | Noncontrolling interest [Member] |
Balance at Dec. 31, 2010 | $226,808,819 | $26,729 | $185,475,047 | ' | $13,286,290 | $28,020,753 | ' |
Balance, shares at Dec. 31, 2010 | ' | 267,287,253 | ' | ' | ' | ' | ' |
Share-based compensation | -108,222 | ' | -108,222 | ' | ' | ' | ' |
Net loss | -94,292,695 | ' | ' | ' | -94,292,695 | ' | ' |
Other comprehensive income | 6,678,512 | ' | ' | ' | ' | 6,678,512 | ' |
Balance at Dec. 31, 2011 | 139,086,414 | 26,729 | 185,366,825 | ' | -81,006,405 | 34,699,265 | ' |
Balance, shares at Dec. 31, 2011 | ' | 267,287,253 | ' | ' | ' | ' | ' |
Share-based compensation | 217 | ' | 217 | ' | ' | ' | ' |
Net loss | -133,593,621 | ' | ' | ' | -133,580,664 | ' | -12,957 |
Other comprehensive income | 824,167 | ' | ' | ' | ' | 824,123 | 44 |
Non-contolling interest capital injection | 2,800 | ' | ' | ' | ' | ' | 2,800 |
Balance at Dec. 31, 2012 | 6,319,977 | 26,729 | 185,367,042 | ' | -214,587,069 | 35,523,388 | -10,113 |
Balance, shares at Dec. 31, 2012 | ' | 267,287,253 | ' | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' | ' | ' | ' |
Net loss | -51,609,472 | ' | ' | ' | -50,609,081 | ' | -1,000,391 |
Other comprehensive income | 584,066 | ' | ' | ' | ' | 547,193 | 36,873 |
Non-contolling interest capital injection | 318,984 | ' | ' | ' | ' | ' | 318,984 |
Return of the shares under Share Lending Agreement | ' | -2,659 | ' | 2,659 | ' | ' | ' |
Return of the shares under Share Lending Agreement, shares | ' | -26,586,000 | ' | 26,586,000 | ' | ' | ' |
Balance at Dec. 31, 2013 | ($44,386,445) | $24,070 | $185,367,042 | $2,659 | ($265,196,150) | $36,070,581 | ($654,647) |
Balance, shares at Dec. 31, 2013 | ' | 240,701,253 | ' | 26,586,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Operating activities: | ' | ' | ' | |||
Net loss | ($51,609,472) | ($133,593,621) | ($94,292,695) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' | ' | |||
Depreciation and amortization | 22,663,879 | 19,872,497 | 20,600,715 | |||
Bad debt provision | 500,329 | 47,400,809 | 12,267,390 | |||
Share-based compensation | ' | 217 | -108,222 | |||
Loss from disposal of property, plant and equipment | 156,593 | 10,152 | 1,211,206 | |||
Goodwill impairment loss | ' | ' | 14,806,586 | |||
Inventory write-down | 1,663,051 | 6,925,478 | 7,765,270 | |||
Loss on changes in fair value of derivatives | ' | 369,309 | 5,173,903 | |||
Gain on repurchase of convertible senior notes | ' | -10,348,750 | -7,440,000 | |||
Amortization of convertible senior notes issuance cost and Share Lending Agreement | 15,934 | 964,749 | 1,630,061 | |||
Gain on disposal of subsidiaries | -2,196,198 | [1] | ' | [1] | ' | [1] |
Others | 112,339 | 152,554 | -223,638 | |||
Changes in operating assets and liabilities: | ' | ' | ' | |||
Accounts receivable and notes receivable | -6,891,374 | 27,649,693 | -99,447,828 | |||
Amounts due from related parties | -16,980,025 | -36,750,808 | 12,321,646 | |||
Advance to suppliers | -1,873,321 | 48,681 | 3,084,559 | |||
Inventories | 37,534,916 | -46,803,682 | 20,491,706 | |||
Project assets | -5,393,761 | 4,442,922 | -9,203,936 | |||
Prepaid expenses and other current assets and VAT tax receivable | 7,046,015 | 20,023,346 | -28,866,090 | |||
Other long-term assets | -2,798,282 | 2,899,490 | -4,841,421 | |||
Deferred tax assets | -2,735,317 | 15,955,998 | -17,460,955 | |||
Accounts payable and notes payable | -27,101,093 | 49,643,649 | 17,775,265 | |||
Amount due to related parties | -58,784,951 | 12,972,949 | 47,037,344 | |||
Accrued expenses and other liabilities and advance from suppliers | 495,461 | 5,434,253 | 6,191,965 | |||
Income tax payable | 3,030,065 | 2,942,606 | -8,766,593 | |||
Prepaid land use rights | ' | -5,825,188 | -12,618,645 | |||
Net cash used in operating activities | -103,145,212 | -15,612,697 | -112,912,407 | |||
Investing activities: | ' | ' | ' | |||
Purchases of property, plant and equipment | -40,901,214 | -44,288,415 | -60,676,805 | |||
Subsidy received from local government to purchase plant and equipment | 6,418,016 | 3,018,154 | ' | |||
Proceeds from disposal of property, plant and equipment | ' | ' | 26,933 | |||
Proceeds from disposal of subsidiaries | 4,264,462 | ' | ' | |||
Change in restricted cash | 32,415,250 | -142,176,204 | 553,448 | |||
Net cash provided by (used in) investing activities | 2,196,514 | -183,446,465 | -60,096,424 | |||
Financing activities: | ' | ' | ' | |||
Capital injection from noncontrolling interest | 318,984 | ' | ' | |||
Repurchase of convertible senior notes | -1,500,000 | -15,651,250 | -9,060,000 | |||
Proceeds from short-term bank borrowings | 614,276,765 | 653,773,767 | 587,785,523 | |||
Proceeds from long-term bank borrowings | 62,370,160 | 46,137,937 | 204,792,588 | |||
Repayment of bank borrowings | -706,361,235 | -513,096,521 | -522,582,754 | |||
Net cash provided by (used in) financing activities | -30,895,326 | 171,163,933 | 260,935,357 | |||
Effect of exchange rate changes on cash and cash equivalents | 2,827,184 | 1,728,782 | 15,084,268 | |||
Net increase (decrease) in cash and cash equivalents | -129,016,840 | -26,166,447 | 103,010,794 | |||
Cash and cash equivalents at the beginning of the year | 183,312,417 | 209,478,864 | 106,468,070 | |||
Cash and cash equivalents at the end of the year | 54,295,577 | 183,312,417 | 209,478,864 | |||
Supplemental disclosure of cash flow information: | ' | ' | ' | |||
Interest paid, net of interest capitalized | 27,501,427 | 27,671,213 | 23,157,984 | |||
Income taxes paid | 832,879 | 1,014 | 12,455,586 | |||
Supplemental disclosure of non-cash investing activities: | ' | ' | ' | |||
Restricted cash collateral received in connection with share-lending arrangement | -2,097,340 | 443,100 | -16,867,340 | |||
Purchase of property, plant and equipment included in accounts payable | $19,159,892 | $21,972,470 | $8,699,797 | |||
[1] | The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company's wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd ("Jinchang New Sunshine") and Hami Huiteng Solar Power Co., Ltd ("Hami Huiteng"). Jinchang New Sunshine and Hami Huiteng were mainly engaged in photovoltaic project's engineering and sales, and were on their pre-operating stage. During the current year, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and Hami Huiteng, respectively. The disposals were completed on December 10, 2013. The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of US$1.5 million in Other (expense) income, net. The amount of the consideration for disposal of Hami Huiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of US$0.7 million in Other (expense) income, net. The disposals did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and Hami Huiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and Hami Huiteng after the disposal transaction. |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | ' | ||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ' | ||||||||
1 | ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||
China Sunergy Co., Ltd. (the "Company" or "China Sunergy Cayman") was incorporated under the laws of the Cayman Islands on August 4, 2006. The Company and its subsidiaries (collectively referred to as the "Group") are principally engaged in the design, development, manufacturing and marketing of solar cells and modules in the People's Republic of China (the "PRC") and overseas markets. | |||||||||
As of December 31, 2013, the Company's subsidiaries include the following entities: | |||||||||
Date of | |||||||||
Incorporation | Percentage of | ||||||||
Subsidiaries' Name | Principal Activities | or acquisition | Ownership | Place of Incorporation | |||||
China Sunergy Co., Ltd. | Investment Holding | 27-Jan-06 | 100% | British Virgin Islands | |||||
("China Sunergy BVI") | |||||||||
China Sunergy (Hong Kong) Co.,Limited | Investment Holding | 7-Dec-07 | 100% | Hong Kong | |||||
("Sunergy Hong Kong") | |||||||||
China Sunergy Europe Gmbh | Marketing Service | 27-Nov-07 | 100% | Germany | |||||
China Sunergy (Nanjing) Co., Ltd. | Solar cells manufacturing | 2-Aug-04 | 100% | PRC | |||||
("Sunergy Nanjing") | |||||||||
China Sunergy (Shanghai) Co., Ltd. | Solar cells manufacturing | 1-Nov-07 | 100% | PRC | |||||
("Sunergy Shanghai") | |||||||||
CEEG (Shanghai) Solar Science | Modules manufacturing | 1-Nov-10 | 100% | PRC | |||||
Technology Co., Ltd. ("SST") | |||||||||
CEEG (Nanjing) Renewable | Modules manufacturing | 1-Nov-10 | 100% | PRC | |||||
Energy Co., Ltd ("NRE") | |||||||||
China Sunergy (US) Clean Tech Inc | Sales & Marketing service | 8-Apr-11 | 100% | US | |||||
CSUN Trading (Hong Kong) | Trading | 4-May-11 | 100% | Hong Kong | |||||
Co., Limited | |||||||||
China Sunergy (Yangzhou) Co., Ltd | Solar cell | 30-Jun-11 | 100% | PRC | |||||
Manufacturing and R&D | |||||||||
China Sunergy Luxembourg S.A | Photovoltaic project's | 5-Aug-11 | 100% | Luxembourg | |||||
Engineering & sales | |||||||||
CSUN International (Hong Kong) | 100% | Hong Kong | |||||||
Co., Ltd | Invest Holding | 22-Mar-12 | |||||||
CSUN Holding (Luxembourg) s.a.r.l | Invest Holding | 26-Apr-12 | 100% | Luxembourg | |||||
CSUN Renewable Energy | |||||||||
(France) S.A.R.L | Marketing service | 29-May-12 | 100% | France | |||||
CSUN Holding UK LTD | Photovoltaic project's | 17-Jul-12 | 100% | UK | |||||
Engineering & sales | |||||||||
CSUN Italy S.R.L | Marketing service | 29-Aug-12 | 100% | Italy | |||||
AEE Renewable UK 6 Limited | Photovoltaic Project | 30-Oct-12 | 100% | UK | |||||
AEE Renewable UK 7 Limited | Photovoltaic Project | 30-Oct-12 | 100% | UK | |||||
CSUN Eurasia Energy Systems | Modules manufacturing | 12-Nov-12 | 80% | Turkey | |||||
Industry and Trade Inc. | |||||||||
CSUN Eurasia Energy Technologies | Solar cells manufacturing | 12-Nov-12 | 80% | Turkey | |||||
Industry and Trade Inc. | |||||||||
Lianyungang Yuanhui Solar Power | Photovoltaic project's | 15-Jul-13 | 100% | PRC | |||||
Engineering and sales | |||||||||
The Group established CSUN Eurasia Energy Systems Industry and Trade Inc. and CSUN Eurasia Energy Technologies Industry and Trade Inc. with 20% noncontrolling interest contributed by another Turkey entity in 2012 and began to ship solar power products in June 2013. |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ' | ||||||||||||
2 | SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||||||
(a) | Basis of presentation | ||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). | |||||||||||||
The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group's ability to generate cash flows from operations, and the Group's ability to arrange adequate financing arrangements, including the renewal or rollover of its bank borrowings, to support its working capital requirements. | |||||||||||||
The following factors raise doubt about the Group's ability to continue as a going concern for the foreseeable future. | |||||||||||||
· | The solar industry is being negatively impacted by a number of factors including excess capacity, reduction of government incentives in key solar markets, higher import tariffs and the European debt crisis. These factors have contributed to declining average selling prices for the Group's products. Since December 31, 2011, the Group's average selling price of modules has fallen from $1.36/watt to $0.59/watt in 2013. | ||||||||||||
· | For the year ended December 31, 2013, the Group incurred an operating loss of $39.9 million and for the year ended December 31, 2012 a loss from operations of $105.7million. | ||||||||||||
· | During the year December 31, 2013, the Group experienced negative cash flow of $103.1 million from operations. | ||||||||||||
· | As of December 31, 2013, the Group's current liabilities exceed its current assets by $12.4 million. While the Group had cash and cash equivalents of $54.3 million and restricted cash of $194.2 million, it had short-term bank borrowings of $304.8 million, all due within one year and the current portion of long-term debt amounting to $35.4 million. | ||||||||||||
These factors are mitigated by the following plans and actions: | |||||||||||||
· | The Group has entered into a written agreement with six commercial banks who agreed to continue providing financial support to the Group, including extensions and renewals of existing loans, representing 67% of the total outstanding loans from these banks as of December 31, 2013. | ||||||||||||
· | While there can be no assurance that the Group will be able to refinance its short-term bank borrowings as they become due, historically, the Group has renewed or rolled over most of its short-term bank loans upon the maturity date of the loans and has assumed it will continue to be able to do so. From January 1, 2014 to March 31, 2014, the Group renewed short-term bank borrowings of $93.9 million. | ||||||||||||
· | The Group has taken a number of cost reduction initiatives. Since the second half of 2011, the Group has implemented its business strategy of cost reduction through research and development efforts at each stage of its vertically integrated manufacturing process and economies of scale through expanding its solar module business. | ||||||||||||
· | The Group has successfully expanded a portion of its manufacturing to Europe through establishing plants to manufacture and sell solar products in Turkey. The Group believes the overseas production capacities will enable them to stay closer to the European market than certain of their competitors which only conduct manufacturing operations in China, capture business opportunities in emerging solar power markets like Turkey and neighboring countries and mitigate the adverse effect on our sales to European countries caused by anti-dumping and countervailing duties that may be imposed. | ||||||||||||
Based on the above factors, management believes that adequate sources of liquidity will exist to fund the Group's working capital and capital expenditures requirements, and to meet its short-term debt obligations, other liabilities and commitments as they become due. | |||||||||||||
(b) | Basis of consolidation | ||||||||||||
The consolidated financial statements include the assets, liabilities, revenues and expenses of the Group. All intercompany transactions and balances have been eliminated on consolidation. | |||||||||||||
(c) | Use of estimates | ||||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the consolidated financial statements include valuation allowances of deferred tax assets, contingent liabilities related to outstanding legal proceedings, inventory valuation, allowance on accounts receivable and supplier advances, provision of warranty costs, assumptions used in calculating the fair value of foreign exchange forward contracts, forfeiture rate of options, the useful lives for property plant and equipment, intangible assets, impairment of long-lived assets and goodwill. | |||||||||||||
(d) | Cash and cash equivalents and restricted cash | ||||||||||||
Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. | |||||||||||||
Restricted cash represents bank deposits for securing letters of credit, letter of guarantee, bank promissory notes, foreign exchange forward contracts and bank guarantees that are not available for use in operations. | |||||||||||||
(e) | Fair value of financial instruments | ||||||||||||
Assets and liabilities that are recorded at fair value on a recurring basis reflect fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The Company applies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: | |||||||||||||
• | Level 1 - Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | ||||||||||||
• | Level 2 - Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | ||||||||||||
• | Level 3 -Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||
When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. | |||||||||||||
(f) | Accounts receivable and allowance for doubtful accounts | ||||||||||||
Accounts receivable are recognized and carried at the original transaction amount less allowance for doubtful accounts. The Group maintains allowance for doubtful accounts for uncollectible accounts receivable. Estimates of anticipated losses from doubtful accounts are based on days past due, historical collection and other factors. | |||||||||||||
(g) | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market value. Cost of purchased raw material is determined using the weighted-average method and cost of work-in-progress and finished good is determined using standard cost method. | |||||||||||||
The Group estimates excess and slow moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. | |||||||||||||
(h) | Project assets | ||||||||||||
Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to the sale of the solar power project. These costs include modules and development costs. While the project assets are not constructed for a specific customer, the Group intends to sell the project assets upon their completion. Due to the development, construction, and sale timeframe of the Group's solar projects, they are expected to be sold within the next 12 months and are classified as current assets. | |||||||||||||
Project assets consisted of the following: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Project assets - Module cost | - | 2,816,687 | |||||||||||
Project assets - Development | 4,761,014 | 7,338,088 | |||||||||||
Total | 4,761,014 | 10,154,775 | |||||||||||
The Group reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In determining whether or not the project assets are recoverable, the Group considers a number of factors, including changes in environmental, ecological, permitting, or regulatory conditions that affect the project. Such changes may cause the cost of the project to increase or the selling price of the project to decrease. There was no impairment charge recognized during the years ended December 31, 2012 and 2013. | |||||||||||||
(i) | Property, plant and equipment | ||||||||||||
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Machinery | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Leasehold improvements | over the shorter of the lease term or their estimated useful lives | ||||||||||||
Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized and transferred to property, plant and equipment on completion, at which time depreciation commences. Interest cost incurred and capitalized in respect of construction of new facilities amounted to $1,290,561, $3,180,454 and $3,816,232 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
(j) | Prepaid land use rights | ||||||||||||
Prepaid land use rights are recorded at cost and are amortized ratably over 50 years, according to the term of the land use right agreement. | |||||||||||||
(k) | Intangible assets, net | ||||||||||||
Intangible assets consist primarily of customer relationships acquired in business combinations and are amortized on a straight-line basis over 3 years. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability" criterion. Intangible assets are recognized and measured at fair value upon acquisition. | |||||||||||||
(l) | Goodwill | ||||||||||||
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group completes a two-step goodwill impairment test. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Management performs its annual goodwill impairment test in November. | |||||||||||||
(l) | Goodwill | ||||||||||||
In 2011, the Group fully impaired the goodwill of $14.8 million based on the annual goodwill impairment test results. No impairment of goodwill was recorded in 2012 or 2013. | |||||||||||||
(m) | Impairment of long-lived assets | ||||||||||||
The Group evaluates its long-lived assets and finite-lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. | |||||||||||||
There was no impairment charge recognized during the years ended December 31, 2011, 2012 and 2013. | |||||||||||||
(n) | Derivative financial instruments | ||||||||||||
The Group entered into certain foreign exchange forward contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates associated with sales contracts denominated in Euro or U.S. dollar. The Group recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. The derivatives do not qualify for hedge accounting and, as a result, the changes in fair value of the derivatives are recognized in the statement of operations. | |||||||||||||
The Group recorded a loss of $5.2 million, $0.4 million and nil relating to foreign exchange forward contracts that did not qualify for hedge accounting for the years ended December 31, 2011, 2012 and 2013, respectively. As of December 31, 2012 and 2013, the Group had outstanding foreign exchange forward contracts with notional amounts of $6.6 million and nil, respectively, with an estimated fair value of ($0.1) million and nil, respectively. These forward contracts are recorded in prepaid expense and other current assets or accrued expense and other current liabilities on the consolidated balance sheet and the gain (loss) is recorded in changes in fair value of derivatives on the consolidated statements of operations. | |||||||||||||
(o) | Income taxes | ||||||||||||
The Group accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. | |||||||||||||
The Group determines whether or not a tax position is "more-likely-than-not" of being sustained upon audit based solely on the technical merits of the position. The Company records interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of operations. At December 31, 2011, 2012 and 2013, the Group had recorded no uncertain tax benefits. The Group does not anticipate any significant changes to its liability for unrecognized tax benefits within the next 12 months. | |||||||||||||
(p) | Revenue recognition | ||||||||||||
Sales of solar cells and modules are recorded when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is considered to have occurred when the risks, rewards and ownership of the products are transferred from the Group to its customers. The majority of the Group's sales contracts include the shipping terms Free on Board ("FOB") and Cost, Insurance and Freight ("CIF"). Based on the nature of these shipping terms, the Group's obligation to deliver has been fulfilled when the goods pass over the ship's rail at the named port of shipment which is specified in each contract. | |||||||||||||
Customers do not have any general rights of return, but may be allowed to exchange for goods that are not defective for a 30 to 45 day period. The Group has recorded the estimated replacement costs, which have been immaterial for all periods presented, in cost of revenue upon recognition of revenue. A portion of the Group's sales to domestic customers require the customers to prepay before delivery has occurred. Such prepayments are recorded as advance from customers in the consolidated balance sheets until delivery has occurred. A majority of the Group's contracts with overseas customers are written such that the customer takes title and assumes the risks and rewards of ownership of the products upon shipment. Accordingly, the Group recognizes revenue upon documentary evidence of shipment, assuming all other criteria have been met. | |||||||||||||
Taxes collected from customers and remitted to governmental authorities are excluded from revenues and such taxes are presented on a net basis. | |||||||||||||
(q) | Buy-and-sell arrangements | ||||||||||||
In 2011, the Group entered into an arrangement whereby the Group sells solar wafers or solar cells, to a third party, and purchases finished goods, including solar cells or solar modules from this third party. The group entered into this transaction in order to ensure the quality of the finished goods it was purchasing. | |||||||||||||
In 2012, the Group entered into arrangements whereby the Group sells solar wafers or solar modules and purchase solar cells from the same counterparties. These arrangements are all to maintain the quantity and quality of the Group's solar cell supply, which ware a key input into the production of solar modules. | |||||||||||||
In 2013, the Group entered into arrangements wherein the Group purchases accessorial raw material and sells modules or purchases solar cells and sells solar wafers to the same counterparties. These arrangements are to maintain the quantity and quality of the silicon cell and other accessorial material supply, which are a key input into the production of solar modules. | |||||||||||||
Based on the substance of the arrangements, the Group records such transactions at the market value. | |||||||||||||
Transactions under buy-and-sell arrangement are as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Sell: | |||||||||||||
Solar wafer | 1,126,939 | 7,459,649 | 155,869 | ||||||||||
Solar cell | 2,409,196 | - | - | ||||||||||
Solar module | - | 1,148,789 | 1,790,579 | ||||||||||
Purchase: | |||||||||||||
Raw material | - | - | 2,704,839 | ||||||||||
Solar cell | 6,562,641 | 26,887,923 | 382,716 | ||||||||||
Solar module | 12,523,974 | - | - | ||||||||||
(r) | Cost of revenue | ||||||||||||
Cost of revenue includes production and indirect costs, as well as warranty costs. | |||||||||||||
(s) | Research and development | ||||||||||||
Research and development costs are expensed when incurred. | |||||||||||||
(t) | Advertising expenses | ||||||||||||
Advertising costs are expensed as incurred. The Group incurred advertising costs amounting to $1,756,612, $2,665,486 and $938,330 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
(u) | Shipping and handling cost | ||||||||||||
Shipping and handling cost for products sold are expensed as incurred and included in sales and marketing expense. The Group incurred shipping and handling cost amounting to $4,172,910, $3,747,564 and $4,890,611 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
(v) | Warranty cost | ||||||||||||
Solar modules are typically sold with up to 25 year warranty against specified declines in the initial minimum power generation capacity at the time of sale. In addition, the Group provides warranty for solar modules against defects in materials and workmanship for a period of five years or ten years from the date of sale. | |||||||||||||
The Group currently accrues for all product warranties on a cumulative basis, based on its best estimate to date. The Group estimates the cost of warranties to be approximately 1.0% of solar module sales and includes that amount in cost of revenues. The Group makes such estimate based on a number of factors including; i) the nature of the warranties provided, which are consistent with industry practice, ii) actual claim expenses incurred, iii) internal testing results, and iv) other assumptions that affect estimates of warranty costs, including industry data for warranty claim activities and academic research. The Group acknowledges that such estimates require significant judgment and the Group will continue to analyze its claim history, academic research and internal testing results and the performance of its products compared to the Group's competitors in determining the adequacy of warranty accruals. An increase or decrease of 0.1% accrual rate, applicable to sales of solar module, would have resulted in a corresponding increase or decrease in warranty expense of $0.3 million for the year ended December 31, 2013. | |||||||||||||
The movement of the Group's accrued warranty costs is summarized below: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Beginning balance | 8,630,604 | 14,763,321 | 17,163,711 | ||||||||||
Addition | 6,233,291 | 2,760,248 | 3,366,686 | ||||||||||
Claimed | (100,574 | ) | (359,858 | ) | (401,123 | ) | |||||||
Ending balance | 14,763,321 | 17,163,711 | 20,129,274 | ||||||||||
(w) | Government grants | ||||||||||||
Government grants are recognized when received and all the conditions for their receipt have been met. | |||||||||||||
Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognized as other liabilities in the consolidated balance sheet and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. In 2013, the Company received government grants of $5.4 million for the purchase of non-current assets. | |||||||||||||
Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. In 2013, approximately $1.9 million government grants were recognized as income and $0.2 million were recognized as an offset to research and development expenses. | |||||||||||||
(x) | Foreign currency translation | ||||||||||||
The functional and reporting currency of the Company is the United States dollar ("US dollar"). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into US dollar at the rates of exchange in effect at the balance sheet dates. Transactions denominated in currencies other than the US dollar during the year are converted into US dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income (expense), net in the statements of operations. | |||||||||||||
The financial records of the Group's subsidiaries are maintained in their local currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and | |||||||||||||
losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statements of comprehensive income (loss). | |||||||||||||
(y) | Comprehensive loss | ||||||||||||
Comprehensive loss includes all changes in equity except those resulting from investments by owners and distributions to owners and is comprised of net loss and foreign currency translation adjustments. | |||||||||||||
(z) | Foreign currency risk | ||||||||||||
The functional currency of the Group's subsidiaries which operate in the PRC is Renminbi ("RMB"). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group's aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to USD equivalent of $278,303,903 and $209,116,209 at December 31, 2012 and 2013, respectively. | |||||||||||||
(aa) | Concentration of credit risk | ||||||||||||
Financial instruments that potentially expose the Group to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable and advance to suppliers. The Group places its cash and cash equivalents with financial institutions with high-credit ratings and quality. | |||||||||||||
The Group performs ongoing credit evaluations of customers and suppliers and generally does not require collateral or other security from its customers. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and advances and factors surrounding the credit risk of specific customers and suppliers. | |||||||||||||
The following table sets forth the changes in allowance for doubtful accounts: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Opening balance | (3,213,378 | ) | (15,869,894 | ) | (63,006,093 | ) | |||||||
Addition | (12,267,390 | ) | (47,400,809 | ) | (10,337,119 | ) | |||||||
Reversal | - | - | 9,836,790 | ||||||||||
Write-off | 86,052 | 361,049 | - | ||||||||||
Effect of exchange rate change in foreign currency | (475,178 | ) | (96,439 | ) | (1,433,783 | ) | |||||||
Ending balance | (15,869,894 | ) | (63,006,093 | ) | (64,940,205 | ) | |||||||
The reversal of $9.8 million was due to the collection of accounts receivable for which bad debt provision was recorded prior to 2013. The reversal was recorded as an offset to general and administrative expense in the consolidated statement of operations. | |||||||||||||
There are no third party customers accounting for 10% or more of total revenue for the years ended December 31, 2011, 2012 or 2013. | |||||||||||||
Accounts receivable from customers accounting for 10% or more of total gross accounts receivable are as follows: | |||||||||||||
Name of Customer | At December 31, | ||||||||||||
2012 | 2013 | ||||||||||||
Company A | 22 | % | 22 | % | |||||||||
Company B | * | 11 | % | ||||||||||
* Less than 10% | |||||||||||||
(bb) | Net loss per share | ||||||||||||
Basic loss per share is computed by dividing loss attributable to holders of ordinary shares by the weighted-average number of ordinary shares outstanding during the year. Diluted loss per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Generally, ordinary share equivalents are excluded from the computation in loss periods as their effects would be anti-dilutive. | |||||||||||||
For the years ended December 31, 2011, 2012 and 2013, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted loss per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Outstanding options and restricted shares | 676,744 | 344,190 | 297,120 | ||||||||||
Assumed conversion of convertible senior notes | 13,414,632 | 4,811,408 | - | ||||||||||
Total | 14,091,376 | 5,155,598 | 297,120 | ||||||||||
The following table sets forth the computation of basic and diluted income per share for the periods indicated: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net loss attributable to ordinary shareholders- for the calculation of basic loss per share | $ | (94,262,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share | $ | (94,292,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Weighted-average ordinary shares outstanding- for the calculation of basic loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Weighted-average ordinary shares outstanding- for the calculation of diluted loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Net loss per share: | |||||||||||||
Basic | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
Diluted | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
(cc) | Share-based compensation | ||||||||||||
The Group recognizes the services received in exchange for awards of equity instruments based on the grant-date fair value of the award as determined by the Binomial option pricing model, net of estimated forfeitures. The estimated compensation cost is recognized using the straight-line method over the period the recipient is required to provide services per the conditions of the award. See Note 14, "Share-Based Compensation", for further details. | |||||||||||||
(dd) | Recently issued accounting pronouncements | ||||||||||||
In July 2013, the FASB issued a pronouncement which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB's objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption will not have a material impact on the Company's consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
3 | INVENTORIES | ||||||||
Inventories consist of the following: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Raw materials | 31,080,141 | 11,170,602 | |||||||
Work-in-process | 9,379,249 | 12,528,549 | |||||||
Finished goods | 43,396,231 | 20,958,503 | |||||||
Inventories | 83,855,621 | 44,657,654 | |||||||
In 2011, 2012 and 2013, inventories were written down by $7,765,270, $6,925,478 and $1,663,051, respectively, to reflect the lower of cost or market adjustments. | |||||||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | ' | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
4 | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment, consist of the following: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Buildings | 24,236,755 | 62,472,729 | |||||||
Plant and machinery | 133,014,758 | 144,361,757 | |||||||
Furniture, fixtures and equipment | 10,524,286 | 14,117,389 | |||||||
Motor vehicles | 1,617,620 | 1,665,289 | |||||||
169,393,419 | 222,617,164 | ||||||||
Less: Accumulated depreciation | (69,220,427 | ) | (88,912,568 | ) | |||||
100,172,992 | 133,704,596 | ||||||||
Construction in process | 105,533,732 | 89,919,590 | |||||||
Property, plant and equipment, net | 205,706,724 | 223,624,186 | |||||||
Depreciation expense was $17,513,454, $16,382,485 and $20,014,581 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||
Construction in progress primarily represents the construction of a research and development building that include several new production lines and the machinery under installation. | |||||||||
PREPAID_LAND_USE_RIGHTS
PREPAID LAND USE RIGHTS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PREPAID LAND USE RIGHTS [Abstract] | ' | ||||||||
PREPAID LAND USE RIGHTS | ' | ||||||||
5 | PREPAID LAND USE RIGHTS | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Prepaid land use rights, cost | 30,086,477 | 30,086,477 | |||||||
Less: Accumulated amortization | (1,539,060 | ) | (2,201,737 | ) | |||||
Prepaid land use rights, net | 28,547,417 | 27,884,740 | |||||||
In 2012, the Group acquired a land use right in Nanjing, Jiangsu Province from its related party, in the amount of $5.8 million, for its planned future expansion of its solar module manufacturing capacity. | |||||||||
Amortization expense was $300,536, $637,687 and $662,677 for the years ended December 31, 2011, 2012 and 2013. | |||||||||
In 2014, 2015, 2016, 2017 and 2018, the Group will record annual amortization expense of approximately $654,445. | |||||||||
INTANGIBLE_ASSETS_NET
INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLE ASSETS, NET [Abstract] | ' | ||||||||
INTANGIBLE ASSETS, NET | ' | ||||||||
6 | INTANGIBLE ASSETS, NET | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Customer relationships | 8,073,439 | 8,073,439 | |||||||
Order backlog | 44,852 | 44,852 | |||||||
Others | 4,485 | 4,485 | |||||||
8,122,776 | 8,122,776 | ||||||||
Less: Accumulated amortization | (6,136,155 | ) | (8,122,776 | ) | |||||
Total | 1,986,621 | - | |||||||
Intangible assets were acquired in 2010 through the business acquisition, and amortization expense was $2,786,725, $2,852,325 and $1,986,621 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||
BANK_BORROWINGS
BANK BORROWINGS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
BANK BORROWINGS [Abstract] | ' | ||||||||
BANK BORROWINGS | ' | ||||||||
7 | BANK BORROWINGS | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Short-term bank borrowings | 463,554,185 | 304,827,038 | |||||||
Current portion of long-term borrowings | 48,865,064 | 35,427,888 | |||||||
Long-term bank borrowings | 122,859,120 | 265,975,939 | |||||||
Total | 635,278,369 | 606,230,865 | |||||||
The Group's short-term bank borrowings had annual average interest rates of 6.35% and 7.01% in year 2012 and 2013, respectively. These loans represent borrowings of the Group from various financial institutions. Each of these borrowings has a term of six months to one year, and expires at various times throughout the year. | |||||||||
The Group's long-term bank borrowings had annual average interest rates of 4.61% and 4.74% in year 2012 and 2013, respectively. These loans represent borrowings of the Group from China Development Bank, China Import & Export Bank , Bank of Nanjing, Shanghai Rural Commercial Bank, Agricultural Bank of China (Hong Kong Branch) and Deniz Bank, with a term of thirteen months to nine years, which would expire between 2015 and 2018. | |||||||||
The short-term bank borrowings (in millions) were guaranteed by: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Fixed deposit | 179.8 | 211.1 | |||||||
China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu | 69.2 | 16.4 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 16.4 | |||||||
Jiangsu Xinde Asset Management Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 16.4 | |||||||
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and mechinery | - | 16.1 | |||||||
CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu | - | 8.2 | |||||||
Construction in progress | 1.9 | 4.9 | |||||||
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 6.6 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu | - | 3.3 | |||||||
Songjiang District SME Credit Guarantee Center | - | 3.3 | |||||||
Shareholder of subsidiaries in Turkey | - | 0.5 | |||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. | 50 | - | |||||||
Bank of Nanjing and China Electric Equipment Group Co., Ltd. | 39.8 | - | |||||||
China Electric Equipment Group Co., Ltd. and Jiangsu Xinde Asset Management Co., Ltd. | 19.7 | - | |||||||
Jiangsu Xinde Asset Management Co., Ltd. | 20.3 | - | |||||||
Land use right and machinery | 7.2 | - | |||||||
Total | 387.9 | 303.2 | |||||||
The Group's long-term bank borrowings (in millions) were guaranteed by: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in Jiangsu Xinde Asset Management Co., Ltd. | - | 100 | |||||||
Land use right and machinery | 50.2 | 42.5 | |||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. | - | 50 | |||||||
CEEG (Jiangsu) Limited, China Electric Equipment Group Co., Ltd., and CEEG (Nanjing) Special Transformer Co., Ltd.'s real estate | - | 32.8 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Limited, and Group Chairman Mr. Tingxiu Lu | - | 30.6 | |||||||
Fixed deposit | - | 26.8 | |||||||
Construction in progress | 10.8 | 11.1 | |||||||
China Electric Equipment Group Co., Ltd. and machinery | - | 7.5 | |||||||
The Group and CEEG (Nanjing) Special Transformer Co., Ltd.'s real estate, and CEEG (Jiangsu) Limited | 31.8 | - | |||||||
Total | 92.8 | 301.3 | |||||||
The Group has short-term credit facilities of $383.0 million from various banks to facilitate its purchase of raw materials, of which $304.8 million were withdrawn with $78.2 million available to use as of December 31, 2013. The bank facilities have no restrictions as to the use of such facilities and contain no financial covenants. These short-term credit facilities are renewable annually upon mutual agreement between the parties. | |||||||||
The Group has a nine-year credit facility of $142.4 million from China Development Bank to facilitate its new 200MW cell production lines and was fully withdrawn as of December 31, 2013. | |||||||||
The Group has a four-year credit facility of $50.0 million used to supplement working capital requirements from China Development Bank, which were fully withdrawn as of December 31, 2013. | |||||||||
The Group has a six-year credit facility of $21.5 million from Shanghai Rural Commercial Bank designed solely for capital expenditure purposes, which had $10.3 million of credit facility available for use as of December 31, 2013. | |||||||||
The Group has three-year credit facilities of $41.0 million and $7.5 million from Bank of Nanjing and Deniz Bank used to supplement working capital requirements, which were fully withdrawn as of December 31, 2013. | |||||||||
The Group has two-year credit facilities of $16.4 million, $11.5 million, $6.6 million and $16.5 million from Bank of Nanjing, China Construction Bank, China Merchants Bank and Agricultural Bank of China (Hong Kong), respectively, which are used to supplement working capital requirements, and $34.5 million of the credit facility are available for use as of December 31, 2013. | |||||||||
The Group has a thirteen-month credit facility of $32.8 million from China Import & Export Bank used to supplement working capital requirements, which were fully withdrawn as of December 31, 2013. | |||||||||
These bank facilities have no restrictions as to their use and contain no financial covenants. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||
8 | Fair value measurement | ||||||||||||||||
Recurring change in fair value | |||||||||||||||||
As of December 31, 2012, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liability: | |||||||||||||||||
Foreign exchange forward contract | $ | (72,501 | ) | $ | (72,501 | ) | |||||||||||
There were no assets or liabilities that were measured at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||
Non-recurring change in fair value | |||||||||||||||||
Given the market capitalization was significantly less than the net asset value as of December 31, 2011, the Group fully impaired the goodwill balance of $14.8 million in year 2011. As of December 31, 2012 and 2013, the Group had no assets or liabilities remeasured at fair value on a non-recurring basis. | |||||||||||||||||
Valuation techniques and classification | |||||||||||||||||
The following is a description of the fair value techniques used for instruments measured at fair value as well as the general classification of such instruments pursuant to the valuation hierarchy described above. | |||||||||||||||||
Foreign exchange forward contract: Quoted prices in active markets for identical assets are not available. The term of the forward contracts held by the Group is less than one year. Main inputs for these short-term forward contracts include foreign exchange rates, which are observable and can be obtained from third party professional pricing sources. These fair value measurements are classified as level 2. | |||||||||||||||||
The fair value measurement for goodwill is classified as Level 3 measurement. Fair value of the goodwill was determined by the Group based on the market approach. Determining the appropriate fair value model and calculating the fair value of these instruments requires the input of significant estimates and assumptions, some of which are unobservable. | |||||||||||||||||
As of December 31, 2013, the carrying amounts of accounts receivable, notes receivable, advance to suppliers, accounts payable, notes payable, advance from customers, amount due from (to) related parties and short-term borrowings approximated their fair values due to their short-term nature. | |||||||||||||||||
The carrying amount of the Group's outstanding convertible notes was $1.5 million and nil as of December 31, 2012 and 2013, and the estimated fair value of this debt was $0.2 million and nil as of December 31, 2012 and 2013, respectively, which were estimated using level 2 inputs such as the market quotes of similar issues. | |||||||||||||||||
The fair value of long-term borrowings is based on the amount of future cash flows associated with each debt instrument discounted at the Company's current borrowing rate for similar debt instruments of comparable terms. The carrying values of the long-term borrowings approximate their fair values as all the long-term debt carry variable interest rates which approximate rates currently offered by the Company's bankers for similar debt instruments of comparable maturities. | |||||||||||||||||
The fair value estimates presented above are based on pertinent information available to management as of December 31, 2012 and 2013, respectively. Although management is not aware of any factors that would significantly affect these fair value estimates, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented. |
CONVERTIBLE_SENIOR_NOTES
CONVERTIBLE SENIOR NOTES | 12 Months Ended | ||
Dec. 31, 2013 | |||
CONVERTIBLE SENIOR NOTES [Abstract] | ' | ||
CONVERTIBLE SENIOR NOTES | ' | ||
9 | Convertible Senior Notes | ||
On July 1, 2008, the Company issued $54.5 million aggregate principal amount (includes $4.5 million from exercise of over-allotment option in full) of Convertible Senior Notes ("Convertible Notes" or "Notes") due June 15, 2013, with an interest rate of 4.75% per annum, payable in arrears semi-annually on June 15 and December 15, beginning on December 15, 2008. As of December 31, 2013, all such Notes had been repurchased by the Group and none of which were converted. | |||
Conversion | |||
Each $1,000 principal amount of the Notes will initially be convertible into 27.10 American Depository Shares, or ADSs (each ADS representing18 ordinary shares), par value $0.0001 per share at a conversion price of $36.9, subject to adjustment. The Notes are convertible into a number of ADSs equal to the conversion rate, at any time prior to the close of business on the third business day immediately preceding the maturity date. Securities may be converted only in denominations of $1,000 principal amount and integral multiples thereof. | |||
If Notes are converted in connection with a fundamental change, as defined in the agreement for the issuance of convertible senior notes, then the conversion rate of the Notes being converted shall be increased by an additional number of ADSs. The conversion rate, including any additional ADSs added to the conversion rate in connection with a fundamental change, will not exceed 32.52 ADSs (equal to a conversion price of $30.75 per ADS). Such maximum conversion rate will be appropriately adjusted for anti-dilution conversion rate adjustments. | |||
Redemption | |||
In the event of a fundamental change, holders have the option to require the Company to repurchase the entire principal amount of these Notes, or the portion thereof (which is $1,000 or an integral multiple thereof), at the fundamental change Repurchase Price, together with accrued interest to, but excluding the repurchase date. | |||
In the event of default, the Trustee by notice to the Company or the Holders of at least 25% in principal amount of the Notes then outstanding by notice to the Company and the Trustee, may declare the Notes to be due and payable. Upon such declaration, the principal of, and accrued and unpaid interest (including any additional amounts) on all Notes shall be due and payable immediately. | |||
Issuance costs for the Convertible Notes amounted to $4.3 million, and were amortized through interest expense over the beneficiary period from July 2008 to June 2013, using the effective interest rate method. These capitalized costs are reported as deferred assets in Convertible bond issuance cost, and $1.1 million and $0.7 million and $0.01 million was amortized for the year ended December 31, 2011 and 2012 and 2013, respectively. | |||
Share Lending Agreement | |||
Concurrent with this offering, 1,477,000 ADSs (the "Loaned Shares") were borrowed by an affiliate of the initial purchaser of the notes pursuant to an ADS lending agreement (the "Share Lending Agreement"), and offered in a transaction registered under the Securities Act. This is designed to facilitate short sales and/or privately negotiated derivative transactions by which investors may elect to hedge their investments in the Convertible Notes. | |||
The purpose of the arrangement, entered into with a third-party financial institution, was to provide potential investors with a means by which they could hedge their long-term exposure to the Group's equity underlying the conversion option. The Group has not received any significant cash from this arrangement, with the exception of cash collateral received from the counterparty which is included in the "restricted cash-collateral account" balance on our consolidated balance sheet. | |||
The Loaned Shares must be returned to the Group by the earliest of (a) the maturity date of the Notes, June 15, 2013, (b) upon the Group's election to terminate the Share Lending Agreement at any time after the later of (i) the date on which the entire principal amount of the Notes ceases to be outstanding, and (ii) the date on which the entire principal amount of any additional convertible securities that the Group has in writing consented to permit the ADS Borrower to hedge under the Share Lending Agreement ceases to be outstanding, in each case, whether as a result of conversion, redemption, repurchase, cancellation or otherwise; and (c) the termination of the Share Lending Agreement. The Group is not required to make any payment to the underwriter of the Notes ("Underwriter") or the ultimate holder of the Notes ("the ADS Borrower") upon the return of the Loaned Shares. | |||
The Underwriter has agreed to post collateral in cash, having a market value equal to at least 100% of the market value of the Loaned Shares during the term of the Share Lending Agreement. Otherwise, the Group can demand that the Underwriter transfer to the collateral agent, a deposit equal to 100% of the market value of the Loaned Shares to the collateral account, no later than the second following business day. The collateral agent will promptly give the Group a statement setting forth the market value of all collateral upon the Group's reasonable request and the Group has the right to audit the market value of all collateral. | |||
The collateral agent is required to deliver to the Group any interest, distributions or dividends on the date of such interest, distribution or dividends are received. The Underwriter has agreed not to vote the Loaned Shares to the extent it is the shareholder of record. An ADS Borrower has the ability to vote without restriction. | |||
Share Lending Agreement - continued | |||
A nominal lending fee of $0.0018 per ADS was received from the ADS borrower for the use of the borrowed ADSs. The ADS Borrower will be required to return the borrowed ADSs pursuant to the ADS lending agreement by the scheduled maturity date of the notes in June 2013. The loaned ADS were accounted for as being reflected at their par value in the common stock line item of the Group's balance sheet, with an offsetting reduction of additional paid in capital. | |||
The Group used the proceeds from the issuance of the Convertible Notes for expansion of production capacity, for enhancement of research and development, and for general corporate purposes. | |||
The Group has accounted for the Share Lending Agreement as the issuance of a written call option to the ADS Borrower for the fair value of the associated ADSs. The Group has recorded the call option at fair value, given the Group has no economic benefit associated with the issuance of the call option. The fair value of the call option upon issuance and subsequently is immaterial. | |||
Although legally issued, the Group has not considered the Loaned Shares issued for accounting purposes. As a result, any cash collateral, to the extent posted by the ADS Borrower, is not considered attributable to the issuance of shares. To the extent cash collateral is posted, the Group recorded the cash as an asset on its balance sheet with an offsetting liability recorded to reflect the collateral receipt as the proceeds of a borrowing. The cash collateral posted as of December 31, 2012 is $2.1 million which is recorded as an asset under restricted cash collateral account with an offsetting liability recorded in collateral accounts payable as of December 31, 2012. As the Convertible Notes matured in June 2013, no asset or liability related to collateral account was recognized as of December 31, 2013. | |||
As of December, 31, 2012, the fair value of outstanding loaned shares was $2.1 million. As the loaned shares are not considered issued for accounting purposes, they were excluded from the number of outstanding ordinary shares used in calculating earnings (loss) per share in 2011 and 2012. As of December 31, 2013, all loaned shares have been returned to the Group, no fair value measurement was required and they were recorded as treasury shares and included in the number of outstanding shares used in calculating loss per share in 2013. | |||
The total issuance costs associated with the share-lending arrangement was $1.9 million. The amortization of the issuance costs was $0.5 million, $0.3 million and $0.01 million for the years ended December 31, 2011, 2012 and 2013, respectively. | |||
In 2011 and 2012, the Group conducted open market repurchases of its Convertible Notes, and repurchased $16.5 million and $26.0 million aggregate principal amount of the Convertible Notes for a total cash consideration of $9.1 million and $15.7 million, respectively. As a result, the Group realized a net gain of $7.4 million and $10.3 million and recorded as other income in 2011 and 2012, respectively. In 2013, the Group settled the remaining $1.5 million of Convertible Notes for cash consideration of $1.5 million when they matured in June 2013. | |||
MAINLAND_CHINA_CONTRIBUTION_PL
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended | |
Dec. 31, 2013 | ||
MAINLAND CHINA CONTRIBUTION PLAN [Abstract] | ' | |
MAINLAND CHINA CONTRIBUTION PLAN | ' | |
10 | Mainland China contribution plan | |
Full time employees of the Group in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees' salaries. The total contribution for such employee benefits was $6.1 million, $6.2 million and $5.9 million for the years ended December 31, 2011, 2012 and 2013, respectively. | ||
PROFIT_APPROPRIATION
PROFIT APPROPRIATION | 12 Months Ended | |
Dec. 31, 2013 | ||
Distribution Of Profit [Abstract] | ' | |
PROFIT APPROPRIATION | ' | |
11 | PROFIT APPROPRIATION | |
Pursuant to laws applicable to entities incorporated in the PRC, PRC subsidiaries such as Sunergy Nanjing, Sunergy Shanghai, SST, NRE, China Sunergy (Yangzhou) Co., Ltd and Lianyungang Yuanhui Solar Power Co., Ltd are prohibited from distributing their statutory capital and must make appropriations from PRC GAAP after-tax profit to other non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end); the appropriation to the other funds are at the PRC subsidiaries' discretion. These reserve funds can only be used for specific purposes of enterprise expansion and staff bonus and welfare and are not distributable as cash dividends, loans or advances to the Company and amounted to RMB49.4 million ($7.9 million) as of December 31, 2012 and 2013. Due to a net loss in 2012 and 2013, PRC subsidiaries made no appropriation to other non-distributable reserve funds. In addition, due to restrictions on the distribution of share capital from the Company's PRC subsidiaries, the PRC subsidiaries share capital of RMB1,789.2 million ($284.6 million) at December 31, 2013 is considered restricted. As a result of these PRC laws and regulations, as of December 31, 2013, approximately RMB 1,838.6 million ($292.5 million) is not available for distribution to the Company by its PRC subsidiaries in the form of dividends, loans or advances. | ||
OTHER_EXPENSE_INCOME_NET
OTHER (EXPENSE) INCOME, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER (EXPENSE) INCOME, NET [Abstract] | ' | ||||||||||||
OTHER (EXPENSE) INCOME, NET | ' | ||||||||||||
12 | OTHER (EXPENSE) INCOME, net | ||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Foreign currency exchange gain (loss), net | (10,649,047 | ) | 397,621 | (826 | ) | ||||||||
Convertible notes repurchase gain | 7,440,000 | 10,348,750 | - | ||||||||||
Government grants | 565,076 | 889,239 | 1,921,965 | ||||||||||
Gain on disposal of subsidiaries (Note (a)) | - | - | 2,196,198 | ||||||||||
Compensation in relation to dispute settlement (Note (b)) | - | - | 1,790,214 | ||||||||||
Forgiveness of interest owe to a related party | - | - | 2,436,882 | ||||||||||
Others | 744,162 | (148,672 | ) | 630,354 | |||||||||
Total | (1,899,809 | ) | 11,486,938 | 8,974,787 | |||||||||
Note: | |||||||||||||
(a) | The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company's wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd ("Jinchang New Sunshine") and Hami Huiteng Solar Power Co., Ltd ("Hami Huiteng"). | ||||||||||||
Jinchang New Sunshine and Hami Huiteng were mainly engaged in photovoltaic project's engineering and sales, and were on their pre-operating stage. During the current year, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and Hami Huiteng, respectively. The disposals were completed on December 10, 2013. | |||||||||||||
The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of US$1.5 million in Other (expense) income, net. | |||||||||||||
The amount of the consideration for disposal of Hami Huiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of US$0.7 million in Other (expense) income, net. | |||||||||||||
The disposals did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and Hami Huiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and Hami Huiteng after the disposal transaction. | |||||||||||||
(b) | The compensation in relation to dispute settlement is the compensation payment from a supplier due to its failure to provide the Company with solar modules pursuant to the agreement. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
13 | Income TAXES | ||||||||||||
Cayman Islands | |||||||||||||
China Sunergy Cayman is not subject to tax on income or capital gain according to the current laws of the Cayman Islands. | |||||||||||||
British Virgin Islands | |||||||||||||
China Sunergy BVI is not subject to tax on income or capital gain according to the current laws of the British Virgin Islands. | |||||||||||||
Hong Kong | |||||||||||||
Sunergy Hong Kong is subject to Hong Kong profit tax at a rate of 16.5% in 2011, 2012 and 2013. CSUN International (Hong Kong) Co., Ltd was incorporated in August 2012 and is subject to Hong Kong profit tax at a rate of 16.5% in 2012 and 2013. No Hong Kong profit tax has been provided as Sunergy Hong Kong and CSUN International (Hong Kong) Co., Ltd have no assessable profit that was earned in or derived from Hong Kong in the periods presented. | |||||||||||||
CSUN Trading (Hong Kong) Co., Limited was incorporated in May 2011 and is subject to Hong Kong profit tax at a rate of 16.5% in 2011, 2012 and 2013. | |||||||||||||
PRC | |||||||||||||
Under the Law of the People's Republic of China on Enterprise Income Tax ("New EIT Law"), which was effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. | |||||||||||||
Sunergy Nanjing, as a wholly foreign owned enterprise engaged in a manufacturing business, was also entitled to two years of exemption followed by three years of 50% deduction starting from its first profitable year which was 2006. In addition, Sunergy Nanjing, as a recognized High and New Technology Enterprise ("HNTE"), is entitled to preferential tax rate of 15% for a three-year validity period from 2008 to 2010.The management of the Group chose to enjoy the transitional relief rate of 12.5% from 2008 to 2010, for Sunergy Nanjing. Sunergy Nanjing renewed its certificate of HNTE in 2011, with a valid period from 2011 to 2013, and thus a 15% preferential tax rate is applied during the corresponding periods. | |||||||||||||
Sunergy Shanghai was established in November 2007 and its applicable EIT rate is 25%. Sunergy Shanghai did not have substantive operations and had incurred minimal non-operating related losses in 2011, 2012 and 2013. | |||||||||||||
SST was acquired in November 2010, which obtained the certificate of HNTE in 2009 and renewed the certificate in 2012, with a valid period from 2012 to 2014, and thus is eligible for a 15% preferential tax rate from 2009 to 2014. | |||||||||||||
NRE was acquired in November 2010 and its applicable EIT rate is 25%. | |||||||||||||
China Sunergy (Yangzhou) Co., Ltd and Lianyungang Yuanhui Solar Power Co., Ltd were established in June 2011 and July 2013, their applicable EIT rate is 25%. They did not have substantive operations and had incurred minimal non-operating related losses. | |||||||||||||
The Group has no uncertain tax positions as of December 31, 2012 and 2013 or unrecognized tax benefits which would favorably affect the effective income tax rate. The Group does not anticipate any significant increases or decreases to its liabilities for unrecognized tax benefits within the next 12 months. | |||||||||||||
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100,000 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. | |||||||||||||
The PRC is the primary tax jurisdiction in which the Company operates. As of December 31, 2013, the Company's PRC subsidiaries remain subject to tax examination by the PRC tax authorities for the tax years 2011 through 2013 on non-transfer pricing matters, and the tax years 2004 to 2013 on transfer pricing matters. There is no statute of limitations in the case of tax evasion. | |||||||||||||
The statute of limitations in Hong Kong is 6 years. | |||||||||||||
The provision for income taxes by tax jurisdictions for the years ended December 31, 2011, 2012 and 2013 is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Loss from operations before income tax: | |||||||||||||
PRC | (111,763,011 | ) | (107,662,760 | ) | (42,999,102 | ) | |||||||
Other jurisdictions | 3,698,354 | (9,635,640 | ) | (7,482,743 | ) | ||||||||
Total loss before income tax | (108,064,657 | ) | (117,298,400 | ) | (50,481,845 | ) | |||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Current income tax expense: | |||||||||||||
PRC | (822,238 | ) | - | (1,981,113 | ) | ||||||||
Other jurisdictions | (2,866,755 | ) | (339,223 | ) | (1,881,831 | ) | |||||||
(3,688,993 | ) | (339,223 | ) | (3,862,944 | ) | ||||||||
Deferred income tax benefit (expense) | |||||||||||||
PRC | 17,460,955 | (17,231,276 | ) | 1,481,687 | |||||||||
Other jurisdictions | - | 1,275,278 | 1,253,630 | ||||||||||
17,460,955 | (15,955,998 | ) | 2,735,317 | ||||||||||
Total income tax benefit (expense) | 13,771,962 | (16,295,221 | ) | (1,127,627 | ) | ||||||||
A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
PRC statutory enterprise income tax rate | 25 | % | 25 | % | 25 | % | |||||||
Different tax rates in other jurisdictions | 1.2 | % | (0.5 | )% | (3.3 | )% | |||||||
Other non-deductible expense for tax purposes | (0.1 | )% | (0.2 | )% | (5.3 | )% | |||||||
Effect of tax holiday | (4.9 | )% | (5.2 | )% | (5.5 | )% | |||||||
Effect of future tax rate change | (1.6 | )% | 7.8 | % | 8.3 | % | |||||||
50% additional deduction of R&D expense | 0.8 | % | 0.7 | % | 1.2 | % | |||||||
Change in valuation allowance | (3.4 | )% | (41.1 | )% | (23.5 | )% | |||||||
Others | (0.9 | )% | (0.4 | )% | 0.9 | % | |||||||
16.1 | % | (13.9 | )% | (2.2 | )% | ||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Gross tax exemption | $ | 5,255,781 | $ | 6,041,242 | $ | 2,756,938 | |||||||
Tax holiday per share-basic | $ | 0.02 | $ | 0.03 | $ | 0.01 | |||||||
Tax holiday per share-diluted | $ | 0.02 | $ | 0.03 | $ | 0.01 | |||||||
The principal components of the deferred tax assets are as follows: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Deferred tax assets: | |||||||||||||
Depreciation of property, plant and equipment | 1,720,769 | 2,188,731 | |||||||||||
Warranty costs | 4,231,091 | 5,058,369 | |||||||||||
Inventory write-down | 932,744 | 517,001 | |||||||||||
Allowance for doubtful account | 13,486,357 | 14,608,597 | |||||||||||
Net operating loss carry forwards | 39,472,810 | 51,570,404 | |||||||||||
Fixed assets impairment | 169,793 | 175,045 | |||||||||||
Others | 64,535 | 49,603 | |||||||||||
Gross total deferred tax assets | 60,078,099 | 74,167,750 | |||||||||||
Valuation allowances | (52,895,481 | ) | (64,754,872 | ) | |||||||||
Net deferred tax assets | 7,182,618 | 9,412,878 | |||||||||||
Analysis as: | |||||||||||||
Current | 1,727,054 | 1,922,242 | |||||||||||
Non-current | 5,455,564 | 7,490,636 | |||||||||||
Total deferred tax assets | 7,182,618 | 9,412,878 | |||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (956,099 | ) | (451,042 | ) | |||||||||
Total deferred tax liabilities | (956,099 | ) | (451,042 | ) | |||||||||
Analysis as: | |||||||||||||
Current | (518,592 | ) | (6,133 | ) | |||||||||
Non-current | (437,507 | ) | (444,909 | ) | |||||||||
Total deferred tax liabilities | (956,099 | ) | (451,042 | ) | |||||||||
The net operating loss carry forwards of the Group's PRC subsidiaries are approximately $193.8 million as of December 2013, mainly for SST, NRE, Sunergy Nanjing and will expire in 2018. | |||||||||||||
The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. | |||||||||||||
Based on the current profit, projected future profitability, and other available evidence, the Group believes that except for certain long-lived temporary differences, deferred tax assets associated with the net operating loss carried forwards and other short-term temporary differences such as bad debt allowance are not realizable. Therefore, a $64.8 million valuation allowance was recorded by the Group. | |||||||||||||
In accordance with the New EIT Law, dividends, which arise from profits of foreign invested enterprises ("FIEs") earned after January 1, 2008, are subject to a 10% withholding income tax. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group plans to indefinitely reinvest the undistributed earnings of the Company's PRC subsidiaries. As of December 31, 2013, the Company's PRC subsidiaries have an accumulated deficit of $273.5 million. Upon distribution of any future earnings in the form of dividends or otherwise, the Company would be subject to the then applicable PRC tax laws and regulations. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
SHARE-BASED COMPENSATION | ' | ||||||||||||||||
14 | SHARE-bASED COMPENSATION | ||||||||||||||||
Prior to January 1, 2008, pursuant to the company's Share Incentive Plan which allows the Company to offer share incentive awards to employees, officers, directors, individual consultants or advisors who rendered services to the Group, 2,500,000 options were authorized and 2,050,900 options were granted, which generally vest over four years and have a 10-year contract term. | |||||||||||||||||
On January 10, 2008, under the Share Incentive Plan, the Company further granted options to purchase 716,226 ordinary shares to certain employees at an exercise price of $1.283 per share. | |||||||||||||||||
On February 5, 2008, the shareholders granted approval for its Second Share Incentive Plan (the "Second Plan"). The Second Plan is open to members of the Board of the Group, as well as employees and consultants as determined by the Compensation Committee of the Board. The maximum number of shares that may be issued pursuant to the Second Plan is 4,190,748. The Company granted 2,397,301 and 1,078,785 restricted common shares to its then CEO and CFO on the same day, which vest one third annually over the following three years. | |||||||||||||||||
On January 9, 2009, the Group granted options to purchase 260,002 and 80,640 ordinary shares to certain employees at an exercise price of $1.283 and $0.7 per share, respectively. The options expire ten years from the date of grant, with one-fourth of the options vesting on each of the following four grant date anniversaries. At the same date, the Group also granted options to purchase 100,002 ordinary shares to a consultant at an exercise price of $0.7 per share. The shares subject to the option vested on December 31, 2009 and is exercisable within 5 years from the date the option is vested. | |||||||||||||||||
In 2011, 2012 and 2013, the Group did not grant any additional options to employees. | |||||||||||||||||
The Group recorded ($108,222), $217 and nil as compensation expense (reversal) for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||||||
The Group records share-based compensation based on the grant date fair value of the option. The weighted average grant-date fair value of options granted during year 2008 and 2009 was $1.20 and $0.22 per share, respectively, computed using the binomial option-pricing formula that uses the assumptions noted below. Expected volatilities are based on the average volatility of comparable companies with the time period commensurate with the expected time period. The Group uses historical data to estimate option exercise and employee termination within the pricing formula. The contractual life of the option is 6 to 10 years. The risk-free rate for periods within the contractual life of the option is based on the yield of US Treasury Bond. | |||||||||||||||||
2009 | |||||||||||||||||
Average risk-free rate of return | 1.51%~2.40% | ||||||||||||||||
Expected term | 6~10 years | ||||||||||||||||
Volatility rate | 84% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
A summary of the option activities is follows: | |||||||||||||||||
Weighted average | |||||||||||||||||
Number of | Weighted average | remaining | Aggregate | ||||||||||||||
Options | exercise price | contract term | intrinsic value | ||||||||||||||
Outstanding at January 1, 2013 | 344,190 | $ | 1.114 | ||||||||||||||
Forfeited | (47,070 | ) | $ | 1.283 | |||||||||||||
Outstanding at December 31, 2013 (all vested and exercisable) | 297,120 | $ | 1.087 | 2.65 | $ | - | |||||||||||
As of December 31, 2013, there was no unrecognized compensation expense related to unvested share-based compensation. | |||||||||||||||||
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract] | ' | ||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||
15 | RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||||||
Related party balances | |||||||||||||
Amounts due from related parties: | |||||||||||||
Years ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Trade related balances | 63,801,695 | 78,319,560 | |||||||||||
Non-trade related balances | 3,205,133 | 5,667,293 | |||||||||||
Amounts due from related parties | 67,006,828 | 83,986,853 | |||||||||||
Trade related balances pertain to receivables and prepayments in respect of sales and inventory acquisition or land use right purchases from related parties with common ultimate investors. Details with such parties are as follows: | |||||||||||||
At December 31, | |||||||||||||
Name of related party | 2012 | 2013 | |||||||||||
$ | $ | ||||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 63,801,695 | 74,922,671 | |||||||||||
China Electric Equipment Group Co., Limited | - | 1,833,709 | |||||||||||
CEEG (Nanjing) Solar Research Institute | - | 1,527,431 | |||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 35,749 | |||||||||||
63,801,695 | 78,319,560 | ||||||||||||
As of December 31, 2012, the non-trade related balances were $3,205,133, of which $2,065,787 pertains to the sale of machinery from Sunergy Nanjing, SST and NRE to China Electric Equipment Group Co., Ltd., which were then exported and sold to CSUN Eurasia Energy Systems Industry and Trade Inc. and CSUN Eurasia Energy Technologies Industry and Trade Inc. (the "Turkey Entities"). | |||||||||||||
As of December 31, 2013, the non-trade related balance was $5,667,293, of which $3,963,883 pertains to the sale of machinery from SST and NRE to China Electric Equipment Group Co., Ltd., which were then exported and sold to the Turkey Entities. | |||||||||||||
Amounts due to related parties: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Trade related balances | 56,319,984 | 6,609,510 | |||||||||||
Non-trade related balances | 14,262,486 | 5,188,009 | |||||||||||
Amounts due to related parties | 70,582,470 | 11,797,519 | |||||||||||
Trade related balances pertain to payables and pre-collected amounts in respect of rental, inventory purchases and sales to/from related parties with common ultimate investors. Details of trade related balances with such parties are as follows: | |||||||||||||
At December 31, | |||||||||||||
Name of related party | 2012 | 2013 | |||||||||||
$ | $ | ||||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | 3,181,214 | |||||||||||
China Electric Equipment Group Co., Ltd. | - | 454,759 | |||||||||||
CEEG (Nanjing) Intelligent Technology Co., Ltd. | - | 190,067 | |||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 1,701,026 | |||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 56,319,984 | 1,082,444 | |||||||||||
56,319,984 | 6,609,510 | ||||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. ("CEEG Semi") is a processor of ingot and wafers, with capacity of 20 MW per year. The Company purchased wafers from CEEG Semi beginning in 2009 and the purchase price approximates market price. As of December 31, 2012 and 2013, the Group had payable balances of $56.3 million and $1.1 million to CEEG Semi, respectively, for the purchase of raw materials. | |||||||||||||
As of December 31, 2012, the non-trade related balances were $14.3 million, of which $11.4 million pertains to the short-term borrowings from CEEG Semi and the related interest expense and the rest pertains to the Turkey Entities' purchase of machinery from China Electric Equipment Group Co., Ltd. and the prepaid electricity fee from CEEG Semi. | |||||||||||||
As of December 31, 2013, the non-trade balances were $5.2 million, of which $4.1 million pertains to the Turkey Entities' purchase of machinery from China Electric Equipment Group Co., Ltd. and the rest pertains to the prepaid electricity fee from CEEG Semi. | |||||||||||||
Related party transactions | |||||||||||||
Other than as disclosed in Note 7, details of related party transactions are as follow: | |||||||||||||
sales to related parties with common ultimate investors: | |||||||||||||
Name of related party | Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
CEEG Nanjing International Trade Co., Ltd. | 4,682 | - | - | ||||||||||
CEEG (Nanjing) Solar Research Institute | 10,113,561 | 4,997,073 | 1,450,689 | ||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 15,609 | - | 247,563 | ||||||||||
China Electric Equipment Group (Hong Kong) Co., Limited | 36,250 | 245,341 | 71,852 | ||||||||||
China Electric Equipment Group Co., Limited | - | 51,216 | 7,435,809 | ||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 537,278 | 606,322 | ||||||||||
CEEG Korea Co., Ltd. | - | 1,393 | - | ||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | - | 38,893 | ||||||||||
10,170,102 | 5,832,301 | 9,851,128 | |||||||||||
purchase of raw materials from related parties with common ultimate investors are as follows: | |||||||||||||
Name of related party | Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
China Electric Equipment Group Co., Ltd. | - | - | 4,778,993 | ||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 73,351,421 | 32,011,217 | 21,449,705 | ||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | - | 4,811,590 | ||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | 21,670 | 3,852,558 | 6,181,715 | ||||||||||
CEEG (Nanjing) Special Transformer Co., Ltd. | - | - | 181 | ||||||||||
73,373,091 | 35,863,775 | 37,222,184 | |||||||||||
In February 2011, Sunergy Nanjing purchased equipment and technology services from CEEG (Nanjing) Solar Research Institute in the amount of approximately $0.8 million in connection with the building of an integrated photovoltaic system to be installed in the Group's Nanjing facilities. | |||||||||||||
In March 2011, NRE purchased a manufacturing site and ancillary premises of approximately 25,000 square meters from CEEG (Nanjing) Special Transformer Co., Ltd. in the amount of approximately $8.0 million. | |||||||||||||
Since December 2012, the Group set up cell and module plants in Turkey and transferred some machinery from SST and NRE to the new plants in Turkey through China Electric Equipment Group Co., Ltd. in the amount of $1.6 million and $2.1 million in 2012 and 2013, respectively. | |||||||||||||
Short-term borrowings from CEEG Semi, with common ultimate investors, are as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Opening balance | - | - | (9,545,760 | ) | |||||||||
Borrowings | - | (116,935,560 | ) | (28,713,240 | ) | ||||||||
Repayment | - | 107,389,800 | 38,259,000 | ||||||||||
Closing balance | - | (9,545,760 | ) | - | |||||||||
In 2012, the Group and CEEG Semi entered into certain short-term borrowing agreements, under which the Group borrowed $116.9 million with a term of six months, with an interest rate comparable to a bank loan over the same period. Such loan was made for the purpose of the Group's operation. As of December 31, 2012, the Group has repaid $107.4 million. In 2013, $28.7 million was borrowed from CEEG Semi and all have been repaid as of December 31, 2013. In 2013, CEEG Semi forgave the interests of these borrowings and the accrued interests amounted to $2.4 million were reversed and recorded in "Other income (expense), net". | |||||||||||||
In 2013, the Group lent CEEG Semi an interest-free loan amounting to $44.3 million, which was subsequently collected as of October 31, 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||
16 | COMMITMENTS AND CONTINGENCIES | ||||||||||||
a) | Operating lease commitments | ||||||||||||
The Group has operating lease agreements principally for staff quarters and for warehouse premises in the PRC. Such leases have remaining terms generally within 48 months, and are renewable upon negotiation. Rental expense was $2,086,451, $1,274,139 and $1,677,533 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2013 were as follows: | |||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 1,837,773 | |||||||||||
2015 | $ | 1,684,326 | |||||||||||
2016 | $ | 105,598 | |||||||||||
2017 | $ | 58,051 | |||||||||||
2018 | $ | 29,523 | |||||||||||
Over 5 years | $ | 61,507 | |||||||||||
$ | 3,776,778 | ||||||||||||
b) | Purchase commitments | ||||||||||||
At December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Commitments to purchase property, plant and equipment (1) | 51,095,125 | 20,415,660 | 13,356,755 | ||||||||||
Commitments to purchase silicon raw materials (2) | 1,314,053,548 | 899,304,092 | 845,131,131 | ||||||||||
1,365,148,673 | 919,719,752 | 858,487,886 | |||||||||||
-1 | Future payment required for purchase of property, plant and equipment are as follows: | ||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 12,672,844 | |||||||||||
2015 | $ | 666,323 | |||||||||||
2016 | $ | 17,588 | |||||||||||
Total | $ | 13,356,755 | |||||||||||
-2 | As of December 31, 2012, the Group had entered into certain long-term silicon procurement contracts, under which the Group agreed to purchase silicon wafers in an aggregate quantity of approximately 986 million pieces over the next four years at the price determined monthly. | ||||||||||||
Based on the prevailing market as of December 31, 2013, future payments required under these long-term supply agreements are as follows: | |||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 281,710,377 | |||||||||||
2015 | $ | 281,710,377 | |||||||||||
2016 | $ | 281,710,377 | |||||||||||
Total | $ | 845,131,131 | |||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||
17 | SEGMENT INFORMATION | ||||||||||||
The Group's chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. Based on this assessment, the Group has determined that it operates in a single reportable segment that includes the design, development, and manufacture of solar cells and modules. The following table summarizes the Group's revenues generated from different geographic locations in which customers are based: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Europe: | |||||||||||||
- Germany | 57,314,051 | 65,979,111 | 43,997,078 | ||||||||||
- Italy | 170,680,970 | 45,429,510 | 7,747,266 | ||||||||||
- Spain | 4,432,090 | 656,723 | 1,558,828 | ||||||||||
- Belgium | 46,114,145 | 1,953,916 | 1,319,670 | ||||||||||
- France | 58,439,157 | 19,758,758 | 48,504,587 | ||||||||||
- Czech Republic and Slovakia | 28,259,894 | 5,699,269 | 1,806,237 | ||||||||||
- Bulgaria | - | 22,300,958 | 1,886,258 | ||||||||||
- United Kingdom | - | 11,844,591 | 6,055,612 | ||||||||||
- Others | 42,375,518 | 34,582,052 | 36,316,562 | ||||||||||
Europe total | 407,615,825 | 208,204,888 | 149,192,098 | ||||||||||
PRC | 38,086,463 | 29,148,928 | 97,038,992 | ||||||||||
India | 49,415,452 | 867,177 | 26,943,051 | ||||||||||
South Korea | 7,234 | 14,244 | - | ||||||||||
Australia | 32,599,218 | 39,605,278 | 7,783,075 | ||||||||||
America | 3,991,732 | 1,932,147 | 1,837,797 | ||||||||||
Japan | - | - | 31,313,082 | ||||||||||
Others | 34,575,831 | 12,948,699 | 2,077,599 | ||||||||||
Total net revenues | 566,291,755 | 292,721,361 | 316,185,694 | ||||||||||
Substantially all the identifiable assets of the Group are located in the PRC. | |||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
18. SUbsequent events | |
On March 27, 2014, the Group has signed a share transfer agreement with its affiliated company, China Electric Equipment Group Co., Ltd., under which the Group agreed to sell and China Electric Equipment Group Co., Ltd. agreed to purchase, 100% of the equity interest in Sunergy Shanghai, a non-operating subsidiary of the Company, for a total consideration of approximately RMB 231.2 million (US$37.7 million). As a result, the Group expects to receive the cash proceeds of approximately RMB 79.6 million (US$13.0 million) from the transaction in the second quarter of 2014. The remaining consideration will be settled through forgiveness of the amount due from the Group by Sunergy Shanghai. | |
SCHEDULE_I
SCHEDULE I | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SCHEDULE 1 [Abstract] | ' | ||||||||||||
SCHEDULE 1 | ' | ||||||||||||
Additional information-financial statements schedule 1 | |||||||||||||
china sunergy co., ltd. | |||||||||||||
Financial information for parent company | |||||||||||||
BALANCE SHEET | |||||||||||||
(In U.S. dollars, except for share data) | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash | 298,551 | 401,680 | |||||||||||
Amount due from subsidiaries | 81,419,439 | 79,100,696 | |||||||||||
Other receivables | 160,086 | 221,884 | |||||||||||
Restricted cash-collateral account | 2,097,340 | - | |||||||||||
Convertible senior notes issuance cost | 15,934 | - | |||||||||||
Total current assets | 83,991,350 | 79,724,260 | |||||||||||
Investments in subsidiaries | (73,268,494 | ) | (123,416,770 | ) | |||||||||
Property, Plant and Equipment, net | - | 3,511 | |||||||||||
Total assets | 10,722,856 | (43,688,999 | ) | ||||||||||
Liabilities and equity: | |||||||||||||
Liabilities: | |||||||||||||
Other liabilities | 795,426 | 42,799 | |||||||||||
Collateral account payable | 1,500,000 | - | |||||||||||
Convertible senior notes payable | 2,097,340 | - | |||||||||||
Total current liabilities | 4,392,766 | 42,799 | |||||||||||
Total liabilities | 4,392,766 | 42,799 | |||||||||||
Equity (deficit): | |||||||||||||
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 267,287,253 shares issued and outstanding as of December 31, 2012 and 2013) | 26,729 | 24,070 | |||||||||||
Additional paid-in capital | 185,367,042 | 185,367,042 | |||||||||||
Treasury shares (at par value of $0.0001) | - | 2,659 | |||||||||||
Accumulated deficit | (214,587,069 | ) | (265,196,150 | ) | |||||||||
Accumulated other comprehensive income | 35,523,388 | 36,070,581 | |||||||||||
Total equity (deficit) | 6,330,090 | (43,731,798 | ) | ||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | 10,722,856 | (43,688,999 | ) | ||||||||||
china sunergy co., ltd. | |||||||||||||
Statement of operations | |||||||||||||
(In U.S. dollars) | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
General and administrative expenses | (706,531 | ) | (1,982,550 | ) | (1,367,729 | ) | |||||||
Total operating expenses | (706,531 | ) | (1,982,550 | ) | (1,367,729 | ) | |||||||
Loss from operations | (706,531 | ) | (1,982,550 | ) | (1,367,729 | ) | |||||||
Interest expense | (3,794,996 | ) | (1,426,848 | ) | (67,583 | ) | |||||||
Interest income | 755,895 | 929,636 | 1,568,461 | ||||||||||
Equity in losses of subsidiaries | (99,222,232 | ) | (141,703,447 | ) | (50,695,469 | ) | |||||||
Other income (expense), net | 8,675,169 | 10,602,545 | (46,761 | ) | |||||||||
Net loss | (94,292,695 | ) | (133,580,664 | ) | (50,609,081 | ) | |||||||
china sunergy co., ltd. | |||||||||||||
Statement of COMPREHENSIVE INCOME (Loss) | |||||||||||||
(In U.S. dollars) | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Net loss | (94,292,695 | ) | (133,580,664 | ) | (50,609,081 | ) | |||||||
Other comprehensive income: | |||||||||||||
Foreign currency translation adjustments, net of tax impact of nil for 2011, 2012 and 2013 | 6,678,512 | 824,123 | 547,193 | ||||||||||
Comprehensive loss | (87,614,183 | ) | (132,756,541 | ) | (50,061,888 | ) | |||||||
china sunergy co., ltd. | |||||||||||||
Statement of cash flows | |||||||||||||
(In U.S. dollars) | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Operating activities: | |||||||||||||
Net loss attributable to China Sunergy Co., Ltd. | (94,292,695 | ) | (133,580,664 | ) | (50,609,081 | ) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||
Equity in gains/losses of subsidiaries | 99,222,232 | 141,703,447 | 50,695,469 | ||||||||||
Share-based compensation | (108,222 | ) | 217 | - | |||||||||
Gain on repurchase of convertible senior notes | (7,440,000 | ) | (10,348,750 | ) | - | ||||||||
Amortization of convertible senior notes | 1,630,060 | 964,750 | 15,934 | ||||||||||
Others | (223,637 | ) | (256,363 | ) | - | ||||||||
Changes in operating assets and liabilities: | |||||||||||||
Other receivables | 200,758 | (52,466 | ) | (61,798 | ) | ||||||||
Other liabilities | (876,334 | ) | (11,832 | ) | (752,627 | ) | |||||||
Amounts due from subsidiaries | (1,300,418 | ) | 15,517,779 | 2,318,743 | |||||||||
Net cash provided by (used in) operating activities | (3,188,256 | ) | 13,936,118 | 1,606,640 | |||||||||
Investing activity: | |||||||||||||
Decrease in restricted cash | 11,250,000 | - | - | ||||||||||
Purchase of PPE | - | - | (3,511 | ) | |||||||||
Net cash provided by (used in) investing activity | 11,250,000 | - | (3,511 | ) | |||||||||
Financing activities: | |||||||||||||
Payment of convertible senior notes repurchase | (9,060,000 | ) | (15,651,250 | ) | (1,500,000 | ) | |||||||
Net cash used in financial activities | (9,060,000 | ) | (15,651,250 | ) | (1,500,000 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (998,256 | ) | (1,715,132 | ) | 103,129 | ||||||||
Cash and cash equivalents at the beginning of the year | 3,011,939 | 2,013,683 | 298,551 | ||||||||||
Cash and cash equivalents at the end of the year | 2,013,683 | 298,551 | 401,680 | ||||||||||
Supplemental disclosure of non-cash investing activities: | |||||||||||||
Restricted cash collateral received in connection with Share Lending Aggrement | (16,867,340 | ) | 443,100 | - | |||||||||
Notes to Schedule 1 | |||||||||||||
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 China Sunergy Co., Ltd. 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 Company. | ||||||||||||
4) | As of December 31, 2013, 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 the Consolidated Financial Statement, if any. |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN1
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). | |||||||||||||
The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group's ability to generate cash flows from operations, and the Group's ability to arrange adequate financing arrangements, including the renewal or rollover of its bank borrowings, to support its working capital requirements. | |||||||||||||
The following factors raise doubt about the Group's ability to continue as a going concern for the foreseeable future. | |||||||||||||
· | The solar industry is being negatively impacted by a number of factors including excess capacity, reduction of government incentives in key solar markets, higher import tariffs and the European debt crisis. These factors have contributed to declining average selling prices for the Group's products. Since December 31, 2011, the Group's average selling price of modules has fallen from $1.36/watt to $0.59/watt in 2013. | ||||||||||||
· | For the year ended December 31, 2013, the Group incurred an operating loss of $39.9 million and for the year ended December 31, 2012 a loss from operations of $105.7million. | ||||||||||||
· | During the year December 31, 2013, the Group experienced negative cash flow of $103.1 million from operations. | ||||||||||||
· | As of December 31, 2013, the Group's current liabilities exceed its current assets by $12.4 million. While the Group had cash and cash equivalents of $54.3 million and restricted cash of $194.2 million, it had short-term bank borrowings of $304.8 million, all due within one year and the current portion of long-term debt amounting to $35.4 million. | ||||||||||||
These factors are mitigated by the following plans and actions: | |||||||||||||
· | The Group has entered into a written agreement with six commercial banks who agreed to continue providing financial support to the Group, including extensions and renewals of existing loans, representing 67% of the total outstanding loans from these banks as of December 31, 2013. | ||||||||||||
· | While there can be no assurance that the Group will be able to refinance its short-term bank borrowings as they become due, historically, the Group has renewed or rolled over most of its short-term bank loans upon the maturity date of the loans and has assumed it will continue to be able to do so. From January 1, 2014 to March 31, 2014, the Group renewed short-term bank borrowings of $93.9 million. | ||||||||||||
· | The Group has taken a number of cost reduction initiatives. Since the second half of 2011, the Group has implemented its business strategy of cost reduction through research and development efforts at each stage of its vertically integrated manufacturing process and economies of scale through expanding its solar module business. | ||||||||||||
· | The Group has successfully expanded a portion of its manufacturing to Europe through establishing plants to manufacture and sell solar products in Turkey. The Group believes the overseas production capacities will enable them to stay closer to the European market than certain of their competitors which only conduct manufacturing operations in China, capture business opportunities in emerging solar power markets like Turkey and neighboring countries and mitigate the adverse effect on our sales to European countries caused by anti-dumping and countervailing duties that may be imposed. | ||||||||||||
Based on the above factors, management believes that adequate sources of liquidity will exist to fund the Group's working capital and capital expenditures requirements, and to meet its short-term debt obligations, other liabilities and commitments as they become due. | |||||||||||||
Basis of consolidation | ' | ||||||||||||
(b) | Basis of consolidation | ||||||||||||
The consolidated financial statements include the assets, liabilities, revenues and expenses of the Group. All intercompany transactions and balances have been eliminated on consolidation. | |||||||||||||
Use of estimates | ' | ||||||||||||
(c) | Use of estimates | ||||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the consolidated financial statements include valuation allowances of deferred tax assets, contingent liabilities related to outstanding legal proceedings, inventory valuation, allowance on accounts receivable and supplier advances, provision of warranty costs, assumptions used in calculating the fair value of foreign exchange forward contracts, forfeiture rate of options, the useful lives for property plant and equipment, intangible assets, impairment of long-lived assets and goodwill. | |||||||||||||
Cash and cash equivalents and restricted cash | ' | ||||||||||||
(d) | Cash and cash equivalents and restricted cash | ||||||||||||
Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. | |||||||||||||
Restricted cash represents bank deposits for securing letters of credit, letter of guarantee, bank promissory notes, foreign exchange forward contracts and bank guarantees that are not available for use in operations. | |||||||||||||
Fair value of financial instruments | ' | ||||||||||||
(e) | Fair value of financial instruments | ||||||||||||
Assets and liabilities that are recorded at fair value on a recurring basis reflect fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The Company applies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: | |||||||||||||
• | Level 1 - Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | ||||||||||||
• | Level 2 - Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | ||||||||||||
• | Level 3 -Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||
When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. | |||||||||||||
Accounts receivable and allowance for doubtful accounts | ' | ||||||||||||
(f) | Accounts receivable and allowance for doubtful accounts | ||||||||||||
Accounts receivable are recognized and carried at the original transaction amount less allowance for doubtful accounts. The Group maintains allowance for doubtful accounts for uncollectible accounts receivable. Estimates of anticipated losses from doubtful accounts are based on days past due, historical collection and other factors. | |||||||||||||
Inventories | ' | ||||||||||||
(g) | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market value. Cost of purchased raw material is determined using the weighted-average method and cost of work-in-progress and finished good is determined using standard cost method. | |||||||||||||
The Group estimates excess and slow moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. | |||||||||||||
Project assets | ' | ||||||||||||
(h) | Project assets | ||||||||||||
Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to the sale of the solar power project. These costs include modules and development costs. While the project assets are not constructed for a specific customer, the Group intends to sell the project assets upon their completion. Due to the development, construction, and sale timeframe of the Group's solar projects, they are expected to be sold within the next 12 months and are classified as current assets. | |||||||||||||
Project assets consisted of the following: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Project assets - Module cost | - | 2,816,687 | |||||||||||
Project assets - Development | 4,761,014 | 7,338,088 | |||||||||||
Total | 4,761,014 | 10,154,775 | |||||||||||
The Group reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In determining whether or not the project assets are recoverable, the Group considers a number of factors, including changes in environmental, ecological, permitting, or regulatory conditions that affect the project. Such changes may cause the cost of the project to increase or the selling price of the project to decrease. There was no impairment charge recognized during the years ended December 31, 2012 and 2013. | |||||||||||||
Property, plant and equipment | ' | ||||||||||||
(i) | Property, plant and equipment | ||||||||||||
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Machinery | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Leasehold improvements | over the shorter of the lease term or their estimated useful lives | ||||||||||||
Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized and transferred to property, plant and equipment on completion, at which time depreciation commences. Interest cost incurred and capitalized in respect of construction of new facilities amounted to $1,290,561, $3,180,454 and $3,816,232 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Prepaid land use rights | ' | ||||||||||||
(j) | Prepaid land use rights | ||||||||||||
Prepaid land use rights are recorded at cost and are amortized ratably over 50 years, according to the term of the land use right agreement. | |||||||||||||
Intangible assets, net | ' | ||||||||||||
(k) | Intangible assets, net | ||||||||||||
Intangible assets consist primarily of customer relationships acquired in business combinations and are amortized on a straight-line basis over 3 years. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability" criterion. Intangible assets are recognized and measured at fair value upon acquisition. | |||||||||||||
Goodwill | ' | ||||||||||||
(l) | Goodwill | ||||||||||||
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group completes a two-step goodwill impairment test. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Management performs its annual goodwill impairment test in November. | |||||||||||||
In 2011, the Group fully impaired the goodwill of $14.8 million based on the annual goodwill impairment test results. No impairment of goodwill was recorded in 2012 or 2013. | |||||||||||||
Impairment of long-lived assets | ' | ||||||||||||
(m) | Impairment of long-lived assets | ||||||||||||
The Group evaluates its long-lived assets and finite-lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. | |||||||||||||
There was no impairment charge recognized during the years ended December 31, 2011, 2012 and 2013. | |||||||||||||
Derivative financial instruments | ' | ||||||||||||
(n) | Derivative financial instruments | ||||||||||||
The Group entered into certain foreign exchange forward contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates associated with sales contracts denominated in Euro or U.S. dollar. The Group recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. The derivatives do not qualify for hedge accounting and, as a result, the changes in fair value of the derivatives are recognized in the statement of operations. | |||||||||||||
The Group recorded a loss of $5.2 million, $0.4 million and nil relating to foreign exchange forward contracts that did not qualify for hedge accounting for the years ended December 31, 2011, 2012 and 2013, respectively. As of December 31, 2012 and 2013, the Group had outstanding foreign exchange forward contracts with notional amounts of $6.6 million and nil, respectively, with an estimated fair value of ($0.1) million and nil, respectively. These forward contracts are recorded in prepaid expense and other current assets or accrued expense and other current liabilities on the consolidated balance sheet and the gain (loss) is recorded in changes in fair value of derivatives on the consolidated statements of operations. | |||||||||||||
Income taxes | ' | ||||||||||||
(o) | Income taxes | ||||||||||||
The Group accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. | |||||||||||||
The Group determines whether or not a tax position is "more-likely-than-not" of being sustained upon audit based solely on the technical merits of the position. The Company records interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of operations. At December 31, 2011, 2012 and 2013, the Group had recorded no uncertain tax benefits. The Group does not anticipate any significant changes to its liability for unrecognized tax benefits within the next 12 months. | |||||||||||||
Revenue recognition | ' | ||||||||||||
(p) | Revenue recognition | ||||||||||||
Sales of solar cells and modules are recorded when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is considered to have occurred when the risks, rewards and ownership of the products are transferred from the Group to its customers. The majority of the Group's sales contracts include the shipping terms Free on Board ("FOB") and Cost, Insurance and Freight ("CIF"). Based on the nature of these shipping terms, the Group's obligation to deliver has been fulfilled when the goods pass over the ship's rail at the named port of shipment which is specified in each contract. | |||||||||||||
Customers do not have any general rights of return, but may be allowed to exchange for goods that are not defective for a 30 to 45 day period. The Group has recorded the estimated replacement costs, which have been immaterial for all periods presented, in cost of revenue upon recognition of revenue. A portion of the Group's sales to domestic customers require the customers to prepay before delivery has occurred. Such prepayments are recorded as advance from customers in the consolidated balance sheets until delivery has occurred. A majority of the Group's contracts with overseas customers are written such that the customer takes title and assumes the risks and rewards of ownership of the products upon shipment. Accordingly, the Group recognizes revenue upon documentary evidence of shipment, assuming all other criteria have been met. | |||||||||||||
Taxes collected from customers and remitted to governmental authorities are excluded from revenues and such taxes are presented on a net basis. | |||||||||||||
Buy-and-sell arrangements | ' | ||||||||||||
(q) | Buy-and-sell arrangements | ||||||||||||
In 2011, the Group entered into an arrangement whereby the Group sells solar wafers or solar cells, to a third party, and purchases finished goods, including solar cells or solar modules from this third party. The group entered into this transaction in order to ensure the quality of the finished goods it was purchasing. | |||||||||||||
In 2012, the Group entered into arrangements whereby the Group sells solar wafers or solar modules and purchase solar cells from the same counterparties. These arrangements are all to maintain the quantity and quality of the Group's solar cell supply, which ware a key input into the production of solar modules. | |||||||||||||
In 2013, the Group entered into arrangements wherein the Group purchases accessorial raw material and sells modules or purchases solar cells and sells solar wafers to the same counterparties. These arrangements are to maintain the quantity and quality of the silicon cell and other accessorial material supply, which are a key input into the production of solar modules. | |||||||||||||
Based on the substance of the arrangements, the Group records such transactions at the market value. | |||||||||||||
Transactions under buy-and-sell arrangement are as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Sell: | |||||||||||||
Solar wafer | 1,126,939 | 7,459,649 | 155,869 | ||||||||||
Solar cell | 2,409,196 | - | - | ||||||||||
Solar module | - | 1,148,789 | 1,790,579 | ||||||||||
Purchase: | |||||||||||||
Raw material | - | - | 2,704,839 | ||||||||||
Solar cell | 6,562,641 | 26,887,923 | 382,716 | ||||||||||
Solar module | 12,523,974 | - | - | ||||||||||
Cost of revenue | ' | ||||||||||||
(r) | Cost of revenue | ||||||||||||
Cost of revenue includes production and indirect costs, as well as warranty costs. | |||||||||||||
Research and development | ' | ||||||||||||
(s) | Research and development | ||||||||||||
Research and development costs are expensed when incurred. | |||||||||||||
Advertising expenses | ' | ||||||||||||
(t) | Advertising expenses | ||||||||||||
Advertising costs are expensed as incurred. The Group incurred advertising costs amounting to $1,756,612, $2,665,486 and $938,330 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Shipping and handling cost | ' | ||||||||||||
(u) | Shipping and handling cost | ||||||||||||
Shipping and handling cost for products sold are expensed as incurred and included in sales and marketing expense. The Group incurred shipping and handling cost amounting to $4,172,910, $3,747,564 and $4,890,611 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Warranty cost | ' | ||||||||||||
(v) | Warranty cost | ||||||||||||
Solar modules are typically sold with up to 25 year warranty against specified declines in the initial minimum power generation capacity at the time of sale. In addition, the Group provides warranty for solar modules against defects in materials and workmanship for a period of five years or ten years from the date of sale. | |||||||||||||
The Group currently accrues for all product warranties on a cumulative basis, based on its best estimate to date. The Group estimates the cost of warranties to be approximately 1.0% of solar module sales and includes that amount in cost of revenues. The Group makes such estimate based on a number of factors including; i) the nature of the warranties provided, which are consistent with industry practice, ii) actual claim expenses incurred, iii) internal testing results, and iv) other assumptions that affect estimates of warranty costs, including industry data for warranty claim activities and academic research. The Group acknowledges that such estimates require significant judgment and the Group will continue to analyze its claim history, academic research and internal testing results and the performance of its products compared to the Group's competitors in determining the adequacy of warranty accruals. An increase or decrease of 0.1% accrual rate, applicable to sales of solar module, would have resulted in a corresponding increase or decrease in warranty expense of $0.3 million for the year ended December 31, 2013. | |||||||||||||
The movement of the Group's accrued warranty costs is summarized below: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Beginning balance | 8,630,604 | 14,763,321 | 17,163,711 | ||||||||||
Addition | 6,233,291 | 2,760,248 | 3,366,686 | ||||||||||
Claimed | (100,574 | ) | (359,858 | ) | (401,123 | ) | |||||||
Ending balance | 14,763,321 | 17,163,711 | 20,129,274 | ||||||||||
Government grants | ' | ||||||||||||
Government grants | |||||||||||||
Government grants are recognized when received and all the conditions for their receipt have been met. | |||||||||||||
Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognized as other liabilities in the consolidated balance sheet and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. In 2013, the Company received government grants of $5.4 million for the purchase of non-current assets. | |||||||||||||
Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. In 2013, approximately $1.9 million government grants were recognized as income and $0.2 million were recognized as an offset to research and development expenses. | |||||||||||||
Foreign currency translation | ' | ||||||||||||
(x) | Foreign currency translation | ||||||||||||
The functional and reporting currency of the Company is the United States dollar ("US dollar"). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into US dollar at the rates of exchange in effect at the balance sheet dates. Transactions denominated in currencies other than the US dollar during the year are converted into US dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income (expense), net in the statements of operations. | |||||||||||||
The financial records of the Group's subsidiaries are maintained in their local currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and | |||||||||||||
losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statements of comprehensive income (loss). | |||||||||||||
Comprehensive loss | ' | ||||||||||||
(y) | Comprehensive loss | ||||||||||||
Comprehensive loss includes all changes in equity except those resulting from investments by owners and distributions to owners and is comprised of net loss and foreign currency translation adjustments. | |||||||||||||
Foreign currency risk | ' | ||||||||||||
(z) | Foreign currency risk | ||||||||||||
The functional currency of the Group's subsidiaries which operate in the PRC is Renminbi ("RMB"). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group's aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to USD equivalent of $278,303,903 and $209,116,209 at December 31, 2012 and 2013, respectively. | |||||||||||||
Concentration of credit risk | ' | ||||||||||||
Concentration of credit risk | |||||||||||||
Financial instruments that potentially expose the Group to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable and advance to suppliers. The Group places its cash and cash equivalents with financial institutions with high-credit ratings and quality. | |||||||||||||
The Group performs ongoing credit evaluations of customers and suppliers and generally does not require collateral or other security from its customers. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and advances and factors surrounding the credit risk of specific customers and suppliers. | |||||||||||||
The following table sets forth the changes in allowance for doubtful accounts: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Opening balance | (3,213,378 | ) | (15,869,894 | ) | (63,006,093 | ) | |||||||
Addition | (12,267,390 | ) | (47,400,809 | ) | (10,337,119 | ) | |||||||
Reversal | - | - | 9,836,790 | ||||||||||
Write-off | 86,052 | 361,049 | - | ||||||||||
Effect of exchange rate change in foreign currency | (475,178 | ) | (96,439 | ) | (1,433,783 | ) | |||||||
Ending balance | (15,869,894 | ) | (63,006,093 | ) | (64,940,205 | ) | |||||||
The reversal of $9.8 million was due to the collection of accounts receivable for which bad debt provision was recorded prior to 2013. The reversal was recorded as an offset to general and administrative expense in the consolidated statement of operations. | |||||||||||||
There are no third party customers accounting for 10% or more of total revenue for the years ended December 31, 2011, 2012 or 2013. | |||||||||||||
Accounts receivable from customers accounting for 10% or more of total gross accounts receivable are as follows: | |||||||||||||
Name of Customer | At December 31, | ||||||||||||
2012 | 2013 | ||||||||||||
Company A | 22 | % | 22 | % | |||||||||
Company B | * | 11 | % | ||||||||||
* Less than 10% | |||||||||||||
Net loss per share | ' | ||||||||||||
(bb) | Net loss per share | ||||||||||||
Basic loss per share is computed by dividing loss attributable to holders of ordinary shares by the weighted-average number of ordinary shares outstanding during the year. Diluted loss per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Generally, ordinary share equivalents are excluded from the computation in loss periods as their effects would be anti-dilutive. | |||||||||||||
For the years ended December 31, 2011, 2012 and 2013, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted loss per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Outstanding options and restricted shares | 676,744 | 344,190 | 297,120 | ||||||||||
Assumed conversion of convertible senior notes | 13,414,632 | 4,811,408 | - | ||||||||||
Total | 14,091,376 | 5,155,598 | 297,120 | ||||||||||
The following table sets forth the computation of basic and diluted income per share for the periods indicated: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net loss attributable to ordinary shareholders- for the calculation of basic loss per share | $ | (94,262,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share | $ | (94,292,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Weighted-average ordinary shares outstanding- for the calculation of basic loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Weighted-average ordinary shares outstanding- for the calculation of diluted loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Net loss per share: | |||||||||||||
Basic | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
Diluted | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
Share-based compensation | ' | ||||||||||||
(cc) | Share-based compensation | ||||||||||||
The Group recognizes the services received in exchange for awards of equity instruments based on the grant-date fair value of the award as determined by the Binomial option pricing model, net of estimated forfeitures. The estimated compensation cost is recognized using the straight-line method over the period the recipient is required to provide services per the conditions of the award. See Note 14, "Share-Based Compensation", for further details. | |||||||||||||
Recently issued accounting pronouncements | ' | ||||||||||||
(dd) | Recently issued accounting pronouncements | ||||||||||||
In July 2013, the FASB issued a pronouncement which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB's objective in issuing this ASU is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption will not have a material impact on the Company's consolidated financial statements. | |||||||||||||
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | ' | ||||||||
Schedule of Subsidiaries | ' | ||||||||
As of December 31, 2013, the Company's subsidiaries include the following entities: | |||||||||
Date of | |||||||||
Incorporation | Percentage of | ||||||||
Subsidiaries' Name | Principal Activities | or acquisition | Ownership | Place of Incorporation | |||||
China Sunergy Co., Ltd. | Investment Holding | 27-Jan-06 | 100% | British Virgin Islands | |||||
("China Sunergy BVI") | |||||||||
China Sunergy (Hong Kong) Co.,Limited | Investment Holding | 7-Dec-07 | 100% | Hong Kong | |||||
("Sunergy Hong Kong") | |||||||||
China Sunergy Europe Gmbh | Marketing Service | 27-Nov-07 | 100% | Germany | |||||
China Sunergy (Nanjing) Co., Ltd. | Solar cells manufacturing | 2-Aug-04 | 100% | PRC | |||||
("Sunergy Nanjing") | |||||||||
China Sunergy (Shanghai) Co., Ltd. | Solar cells manufacturing | 1-Nov-07 | 100% | PRC | |||||
("Sunergy Shanghai") | |||||||||
CEEG (Shanghai) Solar Science | Modules manufacturing | 1-Nov-10 | 100% | PRC | |||||
Technology Co., Ltd. ("SST") | |||||||||
CEEG (Nanjing) Renewable | Modules manufacturing | 1-Nov-10 | 100% | PRC | |||||
Energy Co., Ltd ("NRE") | |||||||||
China Sunergy (US) Clean Tech Inc | Sales & Marketing service | 8-Apr-11 | 100% | US | |||||
CSUN Trading (Hong Kong) | Trading | 4-May-11 | 100% | Hong Kong | |||||
Co., Limited | |||||||||
China Sunergy (Yangzhou) Co., Ltd | Solar cell | 30-Jun-11 | 100% | PRC | |||||
Manufacturing and R&D | |||||||||
China Sunergy Luxembourg S.A | Photovoltaic project's | 5-Aug-11 | 100% | Luxembourg | |||||
Engineering & sales | |||||||||
CSUN International (Hong Kong) | 100% | Hong Kong | |||||||
Co., Ltd | Invest Holding | 22-Mar-12 | |||||||
CSUN Holding (Luxembourg) s.a.r.l | Invest Holding | 26-Apr-12 | 100% | Luxembourg | |||||
CSUN Renewable Energy | |||||||||
(France) S.A.R.L | Marketing service | 29-May-12 | 100% | France | |||||
CSUN Holding UK LTD | Photovoltaic project's | 17-Jul-12 | 100% | UK | |||||
Engineering & sales | |||||||||
CSUN Italy S.R.L | Marketing service | 29-Aug-12 | 100% | Italy | |||||
AEE Renewable UK 6 Limited | Photovoltaic Project | 30-Oct-12 | 100% | UK | |||||
AEE Renewable UK 7 Limited | Photovoltaic Project | 30-Oct-12 | 100% | UK | |||||
CSUN Eurasia Energy Systems | Modules manufacturing | 12-Nov-12 | 80% | Turkey | |||||
Industry and Trade Inc. | |||||||||
CSUN Eurasia Energy Technologies | Solar cells manufacturing | 12-Nov-12 | 80% | Turkey | |||||
Industry and Trade Inc. | |||||||||
Lianyungang Yuanhui Solar Power | Photovoltaic project's | 15-Jul-13 | 100% | PRC | |||||
Engineering and sales | |||||||||
SUMMARY_OF_PRINCIPAL_ACCOUNTIN2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Schedule of Project Assets | ' | ||||||||||||
Project assets consisted of the following: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Project assets - Module cost | - | 2,816,687 | |||||||||||
Project assets - Development | 4,761,014 | 7,338,088 | |||||||||||
Total | 4,761,014 | 10,154,775 | |||||||||||
Schedule of Property, Plant, and Equipment Estimated Useful Lives | ' | ||||||||||||
Depreciation is provided on a straight-line basis over the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Machinery | 10 years | ||||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Leasehold improvements | over the shorter of the lease term or their estimated useful lives | ||||||||||||
Schedule of Purchase and Selling Transactions | ' | ||||||||||||
Transactions under buy-and-sell arrangement are as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Sell: | |||||||||||||
Solar wafer | 1,126,939 | 7,459,649 | 155,869 | ||||||||||
Solar cell | 2,409,196 | - | - | ||||||||||
Solar module | - | 1,148,789 | 1,790,579 | ||||||||||
Purchase: | |||||||||||||
Raw material | - | - | 2,704,839 | ||||||||||
Solar cell | 6,562,641 | 26,887,923 | 382,716 | ||||||||||
Solar module | 12,523,974 | - | - | ||||||||||
Schedule of Warranty Costs | ' | ||||||||||||
The movement of the Group's accrued warranty costs is summarized below: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Beginning balance | 8,630,604 | 14,763,321 | 17,163,711 | ||||||||||
Addition | 6,233,291 | 2,760,248 | 3,366,686 | ||||||||||
Claimed | (100,574 | ) | (359,858 | ) | (401,123 | ) | |||||||
Ending balance | 14,763,321 | 17,163,711 | 20,129,274 | ||||||||||
Reconciliation of Allowance for Doubtful Accounts | ' | ||||||||||||
The following table sets forth the changes in allowance for doubtful accounts: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Opening balance | (3,213,378 | ) | (15,869,894 | ) | (63,006,093 | ) | |||||||
Addition | (12,267,390 | ) | (47,400,809 | ) | (10,337,119 | ) | |||||||
Reversal | - | - | 9,836,790 | ||||||||||
Write-off | 86,052 | 361,049 | - | ||||||||||
Effect of exchange rate change in foreign currency | (475,178 | ) | (96,439 | ) | (1,433,783 | ) | |||||||
Ending balance | (15,869,894 | ) | (63,006,093 | ) | (64,940,205 | ) | |||||||
Accounts Receivable from Customers Accounting for 10% Percent or More | ' | ||||||||||||
Accounts receivable from customers accounting for 10% or more of total gross accounts receivable are as follows: | |||||||||||||
Name of Customer | At December 31, | ||||||||||||
2012 | 2013 | ||||||||||||
Company A | 22 | % | 22 | % | |||||||||
Company B | * | 11 | % | ||||||||||
* Less than 10% | |||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (Loss) Per Share | ' | ||||||||||||
For the years ended December 31, 2011, 2012 and 2013, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted loss per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Outstanding options and restricted shares | 676,744 | 344,190 | 297,120 | ||||||||||
Assumed conversion of convertible senior notes | 13,414,632 | 4,811,408 | - | ||||||||||
Total | 14,091,376 | 5,155,598 | 297,120 | ||||||||||
Schedule of Computation of Basic and Diluted Income Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted income per share for the periods indicated: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net loss attributable to ordinary shareholders- for the calculation of basic loss per share | $ | (94,262,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share | $ | (94,292,695 | ) | $ | (133,580,664 | ) | $ | (50,609,081 | ) | ||||
Weighted-average ordinary shares outstanding- for the calculation of basic loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Weighted-average ordinary shares outstanding- for the calculation of diluted loss per share | 240,701,253 | 240,701,253 | 255,102,003 | ||||||||||
Net loss per share: | |||||||||||||
Basic | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
Diluted | $ | (0.39 | ) | $ | (0.55 | ) | $ | (0.20 | ) | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Raw materials | 31,080,141 | 11,170,602 | |||||||
Work-in-process | 9,379,249 | 12,528,549 | |||||||
Finished goods | 43,396,231 | 20,958,503 | |||||||
Inventories | 83,855,621 | 44,657,654 | |||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | ' | ||||||||
Schedule Of Property, Plant And Equipment | ' | ||||||||
Property, plant and equipment, consist of the following: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Buildings | 24,236,755 | 62,472,729 | |||||||
Plant and machinery | 133,014,758 | 144,361,757 | |||||||
Furniture, fixtures and equipment | 10,524,286 | 14,117,389 | |||||||
Motor vehicles | 1,617,620 | 1,665,289 | |||||||
169,393,419 | 222,617,164 | ||||||||
Less: Accumulated depreciation | (69,220,427 | ) | (88,912,568 | ) | |||||
100,172,992 | 133,704,596 | ||||||||
Construction in process | 105,533,732 | 89,919,590 | |||||||
Property, plant and equipment, net | 205,706,724 | 223,624,186 | |||||||
PREPAID_LAND_USE_RIGHTS_Tables
PREPAID LAND USE RIGHTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PREPAID LAND USE RIGHTS [Abstract] | ' | ||||||||
Schedule of Land Use Rights, Net | ' | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Prepaid land use rights, cost | 30,086,477 | 30,086,477 | |||||||
Less: Accumulated amortization | (1,539,060 | ) | (2,201,737 | ) | |||||
Prepaid land use rights, net | 28,547,417 | 27,884,740 | |||||||
INTANGIBLE_ASSETS_NET_Tables
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLE ASSETS, NET [Abstract] | ' | ||||||||
Schedule of Components of Intangible Assets | ' | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Customer relationships | 8,073,439 | 8,073,439 | |||||||
Order backlog | 44,852 | 44,852 | |||||||
Others | 4,485 | 4,485 | |||||||
8,122,776 | 8,122,776 | ||||||||
Less: Accumulated amortization | (6,136,155 | ) | (8,122,776 | ) | |||||
Total | 1,986,621 | - | |||||||
BANK_BORROWINGS_Tables
BANK BORROWINGS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
BANK BORROWINGS [Abstract] | ' | ||||||||
Schedule of Bank Borrowings | ' | ||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Short-term bank borrowings | 463,554,185 | 304,827,038 | |||||||
Current portion of long-term borrowings | 48,865,064 | 35,427,888 | |||||||
Long-term bank borrowings | 122,859,120 | 265,975,939 | |||||||
Total | 635,278,369 | 606,230,865 | |||||||
Schedule of Short-Term Bank Borrowings | ' | ||||||||
The short-term bank borrowings (in millions) were guaranteed by: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Fixed deposit | 179.8 | 211.1 | |||||||
China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu | 69.2 | 16.4 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 16.4 | |||||||
Jiangsu Xinde Asset Management Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 16.4 | |||||||
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and mechinery | - | 16.1 | |||||||
CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu | - | 8.2 | |||||||
Construction in progress | 1.9 | 4.9 | |||||||
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi | - | 6.6 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu | - | 3.3 | |||||||
Songjiang District SME Credit Guarantee Center | - | 3.3 | |||||||
Shareholder of subsidiaries in Turkey | - | 0.5 | |||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. | 50 | - | |||||||
Bank of Nanjing and China Electric Equipment Group Co., Ltd. | 39.8 | - | |||||||
China Electric Equipment Group Co., Ltd. and Jiangsu Xinde Asset Management Co., Ltd. | 19.7 | - | |||||||
Jiangsu Xinde Asset Management Co., Ltd. | 20.3 | - | |||||||
Land use right and machinery | 7.2 | - | |||||||
Total | 387.9 | 303.2 | |||||||
Schedule of Long-Term Bank Borrowings | ' | ||||||||
The Group's long-term bank borrowings (in millions) were guaranteed by: | |||||||||
At December 31, | |||||||||
2012 | 2013 | ||||||||
$ | $ | ||||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in Jiangsu Xinde Asset Management Co., Ltd. | - | 100 | |||||||
Land use right and machinery | 50.2 | 42.5 | |||||||
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. | - | 50 | |||||||
CEEG (Jiangsu) Limited, China Electric Equipment Group Co., Ltd., and CEEG (Nanjing) Special Transformer Co., Ltd.'s real estate | - | 32.8 | |||||||
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Limited, and Group Chairman Mr. Tingxiu Lu | - | 30.6 | |||||||
Fixed deposit | - | 26.8 | |||||||
Construction in progress | 10.8 | 11.1 | |||||||
China Electric Equipment Group Co., Ltd. and machinery | - | 7.5 | |||||||
The Group and CEEG (Nanjing) Special Transformer Co., Ltd.'s real estate, and CEEG (Jiangsu) Limited | 31.8 | - | |||||||
Total | 92.8 | 301.3 | |||||||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | ' | ||||||||||||||||
Schedule of Recurring Fair Value Measurements | ' | ||||||||||||||||
As of December 31, 2012, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liability: | |||||||||||||||||
Foreign exchange forward contract | $ | (72,501 | ) | $ | (72,501 | ) | |||||||||||
There were no assets or liabilities that were measured at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||
OTHER_EXPENSE_INCOME_NET_Table
OTHER (EXPENSE) INCOME, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER (EXPENSE) INCOME, NET [Abstract] | ' | ||||||||||||
Schedule of Other (Expense) Income | ' | ||||||||||||
OTHER (EXPENSE) INCOME, net | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Foreign currency exchange gain (loss), net | (10,649,047 | ) | 397,621 | (826 | ) | ||||||||
Convertible notes repurchase gain | 7,440,000 | 10,348,750 | - | ||||||||||
Government grants | 565,076 | 889,239 | 1,921,965 | ||||||||||
Gain on disposal of subsidiaries (Note (a)) | - | - | 2,196,198 | ||||||||||
Compensation in relation to dispute settlement (Note (b)) | - | - | 1,790,214 | ||||||||||
Forgiveness of interest owe to a related party | - | - | 2,436,882 | ||||||||||
Others | 744,162 | (148,672 | ) | 630,354 | |||||||||
Total | (1,899,809 | ) | 11,486,938 | 8,974,787 | |||||||||
Note: | |||||||||||||
(a) | The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company's wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd ("Jinchang New Sunshine") and Hami Huiteng Solar Power Co., Ltd ("Hami Huiteng"). | ||||||||||||
Jinchang New Sunshine and Hami Huiteng were mainly engaged in photovoltaic project's engineering and sales, and were on their pre-operating stage. During the current year, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and Hami Huiteng, respectively. The disposals were completed on December 10, 2013. | |||||||||||||
The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of US$1.5 million in Other (expense) income, net. | |||||||||||||
The amount of the consideration for disposal of Hami Huiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of US$0.7 million in Other (expense) income, net. | |||||||||||||
The disposals did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and Hami Huiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and Hami Huiteng after the disposal transaction. | |||||||||||||
(b) | The compensation in relation to dispute settlement is the compensation payment from a supplier due to its failure to provide the Company with solar modules pursuant to the agreement. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Schedule of Income Taxes by Tax Jurisdictions | ' | ||||||||||||
The provision for income taxes by tax jurisdictions for the years ended December 31, 2011, 2012 and 2013 is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Loss from operations before income tax: | |||||||||||||
PRC | (111,763,011 | ) | (107,662,760 | ) | (42,999,102 | ) | |||||||
Other jurisdictions | 3,698,354 | (9,635,640 | ) | (7,482,743 | ) | ||||||||
Total loss before income tax | (108,064,657 | ) | (117,298,400 | ) | (50,481,845 | ) | |||||||
Schedule of Income Tax Expense (Benefit) | ' | ||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Current income tax expense: | |||||||||||||
PRC | (822,238 | ) | - | (1,981,113 | ) | ||||||||
Other jurisdictions | (2,866,755 | ) | (339,223 | ) | (1,881,831 | ) | |||||||
(3,688,993 | ) | (339,223 | ) | (3,862,944 | ) | ||||||||
Deferred income tax benefit (expense) | |||||||||||||
PRC | 17,460,955 | (17,231,276 | ) | 1,481,687 | |||||||||
Other jurisdictions | - | 1,275,278 | 1,253,630 | ||||||||||
17,460,955 | (15,955,998 | ) | 2,735,317 | ||||||||||
Total income tax benefit (expense) | 13,771,962 | (16,295,221 | ) | (1,127,627 | ) | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
PRC statutory enterprise income tax rate | 25 | % | 25 | % | 25 | % | |||||||
Different tax rates in other jurisdictions | 1.2 | % | (0.5 | )% | (3.3 | )% | |||||||
Other non-deductible expense for tax purposes | (0.1 | )% | (0.2 | )% | (5.3 | )% | |||||||
Effect of tax holiday | (4.9 | )% | (5.2 | )% | (5.5 | )% | |||||||
Effect of future tax rate change | (1.6 | )% | 7.8 | % | 8.3 | % | |||||||
50% additional deduction of R&D expense | 0.8 | % | 0.7 | % | 1.2 | % | |||||||
Change in valuation allowance | (3.4 | )% | (41.1 | )% | (23.5 | )% | |||||||
Others | (0.9 | )% | (0.4 | )% | 0.9 | % | |||||||
16.1 | % | (13.9 | )% | (2.2 | )% | ||||||||
Schedule of Deferred Tax Assets | ' | ||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Deferred tax assets: | |||||||||||||
Depreciation of property, plant and equipment | 1,720,769 | 2,188,731 | |||||||||||
Warranty costs | 4,231,091 | 5,058,369 | |||||||||||
Inventory write-down | 932,744 | 517,001 | |||||||||||
Allowance for doubtful account | 13,486,357 | 14,608,597 | |||||||||||
Net operating loss carry forwards | 39,472,810 | 51,570,404 | |||||||||||
Fixed assets impairment | 169,793 | 175,045 | |||||||||||
Others | 64,535 | 49,603 | |||||||||||
Gross total deferred tax assets | 60,078,099 | 74,167,750 | |||||||||||
Valuation allowances | (52,895,481 | ) | (64,754,872 | ) | |||||||||
Net deferred tax assets | 7,182,618 | 9,412,878 | |||||||||||
Analysis as: | |||||||||||||
Current | 1,727,054 | 1,922,242 | |||||||||||
Non-current | 5,455,564 | 7,490,636 | |||||||||||
Total deferred tax assets | 7,182,618 | 9,412,878 | |||||||||||
Schedule of Deferred Tax Liabilities | ' | ||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (956,099 | ) | (451,042 | ) | |||||||||
Total deferred tax liabilities | (956,099 | ) | (451,042 | ) | |||||||||
Analysis as: | |||||||||||||
Current | (518,592 | ) | (6,133 | ) | |||||||||
Non-current | (437,507 | ) | (444,909 | ) | |||||||||
Total deferred tax liabilities | (956,099 | ) | (451,042 | ) | |||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
Schedule of Assumptions Used to Estimate Fair Value | ' | ||||||||||||||||
2009 | |||||||||||||||||
Average risk-free rate of return | 1.51%~2.40% | ||||||||||||||||
Expected term | 6~10 years | ||||||||||||||||
Volatility rate | 84% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||
A summary of the option activities is follows: | |||||||||||||||||
Weighted average | |||||||||||||||||
Number of | Weighted average | remaining | Aggregate | ||||||||||||||
Options | exercise price | contract term | intrinsic value | ||||||||||||||
Outstanding at January 1, 2013 | 344,190 | $ | 1.114 | ||||||||||||||
Forfeited | (47,070 | ) | $ | 1.283 | |||||||||||||
Outstanding at December 31, 2013 (all vested and exercisable) | 297,120 | $ | 1.087 | 2.65 | $ | - | |||||||||||
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Amounts due from related parties [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
Amounts due from related parties: | |||||||||||||
Years ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Trade related balances | 63,801,695 | 78,319,560 | |||||||||||
Non-trade related balances | 3,205,133 | 5,667,293 | |||||||||||
Amounts due from related parties | 67,006,828 | 83,986,853 | |||||||||||
Trade related balances to receivables and prepayments [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
Trade related balances pertain to receivables and prepayments in respect of sales and inventory acquisition or land use right purchases from related parties with common ultimate investors. Details with such parties are as follows: | |||||||||||||
At December 31, | |||||||||||||
Name of related party | 2012 | 2013 | |||||||||||
$ | $ | ||||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 63,801,695 | 74,922,671 | |||||||||||
China Electric Equipment Group Co., Limited | - | 1,833,709 | |||||||||||
CEEG (Nanjing) Solar Research Institute | - | 1,527,431 | |||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 35,749 | |||||||||||
63,801,695 | 78,319,560 | ||||||||||||
Amounts due to related parties [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
Amounts due to related parties: | |||||||||||||
At December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Trade related balances | 56,319,984 | 6,609,510 | |||||||||||
Non-trade related balances | 14,262,486 | 5,188,009 | |||||||||||
Amounts due to related parties | 70,582,470 | 11,797,519 | |||||||||||
Trade related balances to payables and pre-collected amounts [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
Details of trade related balances with such parties are as follows: | |||||||||||||
At December 31, | |||||||||||||
Name of related party | 2012 | 2013 | |||||||||||
$ | $ | ||||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | 3,181,214 | |||||||||||
China Electric Equipment Group Co., Ltd. | - | 454,759 | |||||||||||
CEEG (Nanjing) Intelligent Technology Co., Ltd. | - | 190,067 | |||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 1,701,026 | |||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 56,319,984 | 1,082,444 | |||||||||||
56,319,984 | 6,609,510 | ||||||||||||
Sales to related parties [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
sales to related parties with common ultimate investors: | |||||||||||||
Name of related party | Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
CEEG Nanjing International Trade Co., Ltd. | 4,682 | - | - | ||||||||||
CEEG (Nanjing) Solar Research Institute | 10,113,561 | 4,997,073 | 1,450,689 | ||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 15,609 | - | 247,563 | ||||||||||
China Electric Equipment Group (Hong Kong) Co., Limited | 36,250 | 245,341 | 71,852 | ||||||||||
China Electric Equipment Group Co., Limited | - | 51,216 | 7,435,809 | ||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | - | 537,278 | 606,322 | ||||||||||
CEEG Korea Co., Ltd. | - | 1,393 | - | ||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | - | 38,893 | ||||||||||
10,170,102 | 5,832,301 | 9,851,128 | |||||||||||
Purchases from related parties [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
purchase of raw materials from related parties with common ultimate investors are as follows: | |||||||||||||
Name of related party | Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
China Electric Equipment Group Co., Ltd. | - | - | 4,778,993 | ||||||||||
CEEG (Nanjing) Semiconductor Co., Ltd. | 73,351,421 | 32,011,217 | 21,449,705 | ||||||||||
Jiangxi Jingde Semiconductor New Material Co., Ltd. | - | - | 4,811,590 | ||||||||||
CEEG (Jiangsu) Insulative New Material Co., Ltd. | 21,670 | 3,852,558 | 6,181,715 | ||||||||||
CEEG (Nanjing) Special Transformer Co., Ltd. | - | - | 181 | ||||||||||
73,373,091 | 35,863,775 | 37,222,184 | |||||||||||
Short-term borrowings [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule of Related Party Balances and Transactions | ' | ||||||||||||
Short-term borrowings from CEEG Semi, with common ultimate investors, are as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Opening balance | - | - | (9,545,760 | ) | |||||||||
Borrowings | - | (116,935,560 | ) | (28,713,240 | ) | ||||||||
Repayment | - | 107,389,800 | 38,259,000 | ||||||||||
Closing balance | - | (9,545,760 | ) | - | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Long-term Purchase Commitment [Line Items] | ' | ||||||||||||
Schedule of Future Minimum Payments Under Operating Leases | ' | ||||||||||||
Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2013 were as follows: | |||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 1,837,773 | |||||||||||
2015 | $ | 1,684,326 | |||||||||||
2016 | $ | 105,598 | |||||||||||
2017 | $ | 58,051 | |||||||||||
2018 | $ | 29,523 | |||||||||||
Over 5 years | $ | 61,507 | |||||||||||
$ | 3,776,778 | ||||||||||||
Schedule of Purchase Commitments | ' | ||||||||||||
Purchase commitments | |||||||||||||
At December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Commitments to purchase property, plant and equipment (1) | 51,095,125 | 20,415,660 | 13,356,755 | ||||||||||
Commitments to purchase silicon raw materials (2) | 1,314,053,548 | 899,304,092 | 845,131,131 | ||||||||||
1,365,148,673 | 919,719,752 | 858,487,886 | |||||||||||
Schedule of Long-Term Supply Agreements | ' | ||||||||||||
Based on the prevailing market as of December 31, 2013, future payments required under these long-term supply agreements are as follows: | |||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 281,710,377 | |||||||||||
2015 | $ | 281,710,377 | |||||||||||
2016 | $ | 281,710,377 | |||||||||||
Total | $ | 845,131,131 | |||||||||||
Property, Plant and Equipment [Member] | ' | ||||||||||||
Long-term Purchase Commitment [Line Items] | ' | ||||||||||||
Schedule of Future Minimum Payments Under Operating Leases | ' | ||||||||||||
Future payment required for purchase of property, plant and equipment are as follows: | |||||||||||||
Twelve-month period ending December 31, | |||||||||||||
2014 | $ | 12,672,844 | |||||||||||
2015 | $ | 666,323 | |||||||||||
2016 | $ | 17,588 | |||||||||||
Total | $ | 13,356,755 | |||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||
Schedule of Revenues by Geographic Area | ' | ||||||||||||
The following table summarizes the Group's revenues generated from different geographic locations in which customers are based: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
$ | $ | $ | |||||||||||
Europe: | |||||||||||||
- Germany | 57,314,051 | 65,979,111 | 43,997,078 | ||||||||||
- Italy | 170,680,970 | 45,429,510 | 7,747,266 | ||||||||||
- Spain | 4,432,090 | 656,723 | 1,558,828 | ||||||||||
- Belgium | 46,114,145 | 1,953,916 | 1,319,670 | ||||||||||
- France | 58,439,157 | 19,758,758 | 48,504,587 | ||||||||||
- Czech Republic and Slovakia | 28,259,894 | 5,699,269 | 1,806,237 | ||||||||||
- Bulgaria | - | 22,300,958 | 1,886,258 | ||||||||||
- United Kingdom | - | 11,844,591 | 6,055,612 | ||||||||||
- Others | 42,375,518 | 34,582,052 | 36,316,562 | ||||||||||
Europe total | 407,615,825 | 208,204,888 | 149,192,098 | ||||||||||
PRC | 38,086,463 | 29,148,928 | 97,038,992 | ||||||||||
India | 49,415,452 | 867,177 | 26,943,051 | ||||||||||
South Korea | 7,234 | 14,244 | - | ||||||||||
Australia | 32,599,218 | 39,605,278 | 7,783,075 | ||||||||||
America | 3,991,732 | 1,932,147 | 1,837,797 | ||||||||||
Japan | - | - | 31,313,082 | ||||||||||
Others | 34,575,831 | 12,948,699 | 2,077,599 | ||||||||||
Total net revenues | 566,291,755 | 292,721,361 | 316,185,694 | ||||||||||
Substantially all the identifiable assets of the Group are located in the PRC. | |||||||||||||
ORGANIZATION_AND_PRINCIPAL_ACT2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended |
Dec. 31, 2013 | |
China Sunergy Co., Ltd.("China Sunergy BVI") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy Europe Gmbh [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy (Shanghai) Co., Ltd. ("Sunergy Nanjing") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CEEG (Shanghai) Solar Science Technology Co., Ltd. ("SST") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CEEG (Nanjing) Renewable Energy Co., Ltd ("NRE") [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy (US) Clean Tech Inc [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Trading (Hong Kong) Co., Limited [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy (Yangzhou) Co., Ltd [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
China Sunergy Luxembourg S.A [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN International (Hong Kong) Co., Ltd [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Holding (Luxembourg) s.a.r.l [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Renewable Energy (France) S.A.R.L [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Holding UK LTD [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Italy S.R.L [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
Hami Huiteng Electrics Co., Ltd [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
CSUN Eurasia Enerji Sistemleri Sanayi ve Ticaret Anonim Sirketi [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 80.00% |
CSUN Eurasia Enerji Teknolojileri Sanayi ve Ticaret Anonim Sirketi [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 80.00% |
AEE Renewable UK 6 Limited [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
AEE Renewable UK 7 Limited [Member] | ' |
Business Acquisition [Line Items] | ' |
Percentage of ownership | 100.00% |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Project Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Project assets | $10,154,775 | $4,761,014 |
Module Cost [Member] | ' | ' |
Project assets | 2,816,687 | ' |
Development [Member] | ' | ' |
Project assets | $7,338,088 | $4,761,014 |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Property, Plant, and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '20 years |
Machinery [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '10 years |
Furniture, fixtures and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Motor vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives, description | ' |
over the shorter of the lease term or their estimated useful lives |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Summary Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Loss from operations | ($37,237,256) | ($105,732,514) | ($80,038,016) | ' |
Average product selling price | 0.59 | ' | 1.36 | ' |
Interest costs capitalized | 3,816,232 | 3,180,454 | 1,290,561 | ' |
Cash and cash equivalents | 54,295,577 | 183,312,417 | 209,478,864 | 106,468,070 |
Cash flows from operating activities | -103,145,212 | -15,612,697 | -112,912,407 | ' |
Restricted cash | 194,195,634 | 226,610,884 | ' | ' |
Short-term bank borrowings | 304,827,038 | 463,554,185 | ' | ' |
Short-term bank loan renewed | 93,900,000 | ' | ' | ' |
Current portion of long-term debt | 35,427,888 | 48,865,064 | ' | ' |
Assets and liabilities, net | -12,400,000 | ' | ' | ' |
Amortization period | '3 years | ' | ' | ' |
Goodwill impairment loss | ' | ' | 14,806,586 | ' |
Advertising costs | 938,330 | 2,665,486 | 1,756,612 | ' |
Shipping and handling costs | 4,890,611 | 3,747,564 | 4,172,910 | ' |
Product warranty period issued | '25 years | ' | ' | ' |
Product warranty period for defects, period one | '5 years | ' | ' | ' |
Product warranty period for defects, period two | '10 years | ' | ' | ' |
Cost of warranties determined by percentage of sales | 1.00% | ' | ' | ' |
Increase (decrease) in accrual rate | 0.10% | ' | ' | ' |
Increase (decrease) in warranty expense | 300,000 | ' | ' | ' |
Cash and cash equivalents and restricted cash | 209,116,209 | 278,303,903 | ' | ' |
Government grants | 1,921,965 | 889,239 | 565,076 | ' |
Government grants, non-current | 5,400,000 | ' | ' | ' |
Research and development expenses offset | 200,000 | ' | ' | ' |
Derivative foreign exchange forward contracts with notional amounts | ' | 6,600,000 | ' | ' |
Derivatives, fair value | ' | 72,501 | ' | ' |
Changes in fair value of derivatives | ' | ($369,309) | ($5,173,903) | ' |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Purchase and Selling Transactions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Polysilicon [Member] | ' | ' | ' |
Purchasing And Selling Inventory [Line Items] | ' | ' | ' |
Purchase | $2,704,839 | ' | ' |
Solar wafer [Member] | ' | ' | ' |
Purchasing And Selling Inventory [Line Items] | ' | ' | ' |
Sell | 155,869 | 7,459,649 | 1,126,939 |
Solar cell [Member] | ' | ' | ' |
Purchasing And Selling Inventory [Line Items] | ' | ' | ' |
Sell | ' | ' | 2,409,196 |
Purchase | 382,716 | 26,887,923 | 6,562,641 |
Solar module [Member] | ' | ' | ' |
Purchasing And Selling Inventory [Line Items] | ' | ' | ' |
Sell | 1,790,579 | 1,148,789 | ' |
Purchase | ' | ' | $12,523,974 |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Warranty Costs) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Beginning Balance | $17,163,711 | $14,763,321 | $8,630,604 |
Addition | 3,366,686 | 2,760,248 | 6,233,291 |
Claimed | -401,123 | -359,858 | -100,574 |
Ending Balance | $20,129,274 | $17,163,711 | $14,763,321 |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Reconciliation of Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Opening balance | ($63,006,093) | ($15,869,894) | ($3,213,378) |
Addition | -10,337,119 | -47,400,809 | -12,267,390 |
Reversal | 9,836,790 | ' | ' |
Write-off | ' | 361,049 | 86,052 |
Effect of exchange rate change in foreign currency | -1,433,783 | -96,439 | -475,178 |
Ending balance | ($64,940,205) | ($63,006,093) | ($15,869,894) |
SUMMARY_OF_PRINCIPAL_ACCOUNTIN9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Accounts Receivable from Customers Accounting for 10% Percent or More) (Details) (Accounts Receivable [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Company A [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 22.00% | 22.00% |
Company B [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 11.00% | ' |
Recovered_Sheet1
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (Loss) Per Share) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding securities | 297,120 | 5,155,598 | 14,091,376 |
Outstanding options and restricted shares [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding securities | 297,120 | 344,190 | 676,744 |
Assumed conversion of convertible senior notes [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding securities | ' | 4,811,408 | 13,414,632 |
Recovered_Sheet2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Computation of Basic and Diluted Income Per Share) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Net income (loss) attributable to ordinary shareholders- for the calculation of basic income (loss) per share | ($50,609,081) | ($133,580,664) | ($94,262,695) |
Net income (loss) attributable to ordinary shareholders- for the calculation of diluted income (loss) per share | ($50,609,081) | ($133,580,664) | ($94,292,695) |
Weighted-average ordinary shares outstanding-for the calculation of basic income (loss) per share | 255,102,003 | 240,701,253 | 240,701,253 |
Weighted-average ordinary shares outstanding- for the calculation of diluted income (loss) per share | 255,102,003 | 240,701,253 | 240,701,253 |
Net income (loss) per share: | ' | ' | ' |
Basic | ($0.20) | ($0.55) | ($0.39) |
Diluted | ($0.20) | ($0.55) | ($0.39) |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INVENTORIES [Abstract] | ' | ' | ' |
Raw materials | $11,170,602 | $31,080,141 | ' |
Work-in-process | 12,528,549 | 9,379,249 | ' |
Finished goods | 20,958,503 | 43,396,231 | ' |
Inventories | 44,657,654 | 83,855,621 | ' |
Inventory write down | $1,663,051 | $6,925,478 | $7,765,270 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | $222,617,164 | $169,393,419 | ' |
Less: Accumulated depreciation | -88,912,568 | -69,220,427 | ' |
Property, plant and equipment | 133,704,596 | 100,172,992 | ' |
Construction in process | 89,919,590 | 105,533,732 | ' |
Property, plant and equipment, net | 223,624,186 | 205,706,724 | ' |
Depreciation expense | 20,014,581 | 16,382,485 | 17,513,454 |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 62,472,729 | 24,236,755 | ' |
Plant and machinery [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 144,361,757 | 133,014,758 | ' |
Furniture, fixtures and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 14,117,389 | 10,524,286 | ' |
Motor vehicles [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | $1,665,289 | $1,617,620 | ' |
PREPAID_LAND_USE_RIGHTS_Schedu
PREPAID LAND USE RIGHTS (Schedule of Land Use Rights, Net) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
PREPAID LAND USE RIGHTS [Abstract] | ' | ' |
Prepaid land use rights, cost | $30,086,477 | $30,086,477 |
Less: Accumulated amortization | -2,201,737 | -1,539,060 |
Prepaid land use rights, net | $27,884,740 | $28,547,417 |
PREPAID_LAND_USE_RIGHTS_Narrat
PREPAID LAND USE RIGHTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
PREPAID LAND USE RIGHTS [Abstract] | ' | ' | ' |
Prepaid land use right for future expansion | ' | $5,800,000 | ' |
Amortization expense | 662,677 | 637,687 | 300,536 |
Amortization expense, 2014 | 654,445 | ' | ' |
Amortization expense, 2015 | 654,445 | ' | ' |
Amortization expense, 2016 | 654,445 | ' | ' |
Amortization expense, 2017 | 654,445 | ' | ' |
Amortization expense, 2018 | $654,445 | ' | ' |
INTANGIBLE_ASSETS_NET_Details
INTANGIBLE ASSETS, NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | $8,122,776 | $8,122,776 | ' |
Less: Accumulated amortization | -8,122,776 | -6,136,155 | ' |
Total | ' | 1,986,621 | ' |
Amortization expense related to intangible assets | 1,986,621 | 2,852,325 | 2,786,725 |
Customer relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | 8,073,439 | 8,073,439 | ' |
Order backlog [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | 44,852 | 44,852 | ' |
Others [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | $4,485 | $4,485 | ' |
BANK_BORROWINGS_Schedule_of_Ba
BANK BORROWINGS (Schedule of Bank Borrowings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
BANK BORROWINGS [Abstract] | ' | ' |
Short-term bank borrowings | $304,827,038 | $463,554,185 |
Current portion of long-term debt | 35,427,888 | 48,865,064 |
Long-term bank borrowings | 265,975,939 | 122,859,120 |
Total | $606,230,865 | $635,278,369 |
BANK_BORROWINGS_Narrative_Deta
BANK BORROWINGS (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Short-term bank borrowings [Member] | Short-term bank borrowings [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Credit facilities [Member] | Long-term bank borrowings [Member] | Long-term bank borrowings [Member] | Long-term bank borrowings [Member] | ||
Minimum [Member] | Maximum [Member] | China Development Bank [Member] | China Development Bank, Secondary Line of Credit [Member] | Shanghai Rural Commercial Bank [Member] | Bank of Nanjing [Member] | Deniz Bank [Member] | Bank of Nanjing [Member] | China Construction Bank [Member] | China Merchants Bank [Member] | Agricultural Bank of China (Hong Kong) [Member] | Bank of Nanjing, China Construction Bank, China Merchants Bank and Agricultural Bank of China Hong Kong [Member] | China Import & Export Bank [Member] | Minimum [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term bank borrowings annual average interest rates | 7.01% | 6.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term bank borrowings have annual average interest rates | 4.74% | 4.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date, start | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-15 | ' | ' |
Maturity date, end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-18 | ' | ' |
Short term credit facility | ' | ' | ' | ' | $383 | $142.40 | $50 | $21.50 | $41 | $7.50 | $16.40 | $11.50 | $6.60 | $16.50 | ' | $32.80 | ' | ' | ' |
Short term credit facility, amount withdrawn | ' | ' | ' | ' | 304.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short term credit facility, amount available | ' | ' | ' | ' | $78.20 | ' | ' | $10.30 | ' | ' | ' | ' | ' | ' | $34.50 | ' | ' | ' | ' |
Debt instrument, term | ' | ' | '6 months | '1 year | ' | '9 years | '4 years | '6 years | '3 years | '3 years | '2 years | '2 years | '2 years | '2 years | ' | '13 months | ' | '13 months | '9 years |
BANK_BORROWINGS_Schedule_of_Sh
BANK BORROWINGS (Schedule of Short-Term Bank Borrowing's Guarantees) (Details) (Financial Guarantee [Member], Short-term bank borrowings [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee, fixed deposit | $179.80 | $211.10 |
Debt guarantee | 387.9 | 303.2 |
China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 16.4 | 69.2 |
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 16.4 | ' |
Jiangsu Xinde Asset Management Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 16.4 | ' |
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and mechinery [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 16.1 | ' |
CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 8.2 | ' |
Construction in progress [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 4.9 | 1.9 |
China Electric Equipment Group Co., Ltd., Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 6.6 | ' |
China Electric Equipment Group Co., Ltd., CEEG (Nanjing) Special Transformer Co., Ltd. and Group Chairman Mr. Tingxiu Lu [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 3.3 | ' |
Songjiang District SME Credit Guarantee Center [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 3.3 | ' |
Shareholder of subsidiaries in Turkey [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 0.5 | ' |
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | 50 |
Bank of Nanjing and China Electric Equipment Group Co., Ltd. [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | 39.8 |
China Electric Equipment Group Co., Ltd and Jiangsu Xinde Asset Management Co., Ltd. [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | 19.7 |
Jiangsu Xinde Asset Management Co., Ltd. [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | 20.3 |
Land use right and machinery [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | $7.20 |
BANK_BORROWINGS_Schedule_of_Lo
BANK BORROWINGS (Schedule of Long-Term Bank Borrowing's Guarantees) (Details) (Financial Guarantee [Member], Long-term bank borrowings [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee, fixed deposit | $26.80 | ' |
Debt guarantee | 301.3 | 92.8 |
Group Chairman Mr. Tingxiu Lu and his stock rights in Jiangsu Xinde Asset Management Co., Ltd. [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 100 | ' |
Land use right and machinery [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 42.5 | 50.2 |
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 50 | ' |
CEEG (Jiangsu) Limited, China Electric Equipment Group Co., Ltd., and CEEG (Nanjing) Special Transformer Co., Ltd.'s real estate [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 32.8 | ' |
China Electric Equipment Group Co., Ltd., CEEG (Jiangsu) Limited, and Group Chairman Mr. Tingxiu Lu [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 30.6 | ' |
Construction in progress [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 11.1 | 10.8 |
China Electric Equipment Group Co., Ltd. and machinery [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | 7.5 | ' |
The Group and CEEG (Nanjing) Special Transformer Co., Ltd's real estate, and CEEG (Jiangsu) Limited [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Debt guarantee | ' | $31.80 |
FAIR_VALUE_MEASUREMENT_Schedul
FAIR VALUE MEASUREMENT (Schedule of Recurring Fair Value Measurements) (Details) (USD $) | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Foreign exchange forward contract | ($72,501) |
Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Foreign exchange forward contract | ' |
Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Foreign exchange forward contract | -72,501 |
Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Foreign exchange forward contract | ' |
FAIR_VALUE_MEASUREMENT_Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
FAIR VALUE MEASUREMENT [Abstract] | ' | ' | ' |
Goodwill impairment loss | ' | ' | $14,806,586 |
Convertible senior notes | ' | 1,500,000 | ' |
Fair value of debt | ' | $200,000 | ' |
CONVERTIBLE_SENIOR_NOTES_Detai
CONVERTIBLE SENIOR NOTES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 01, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 01, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Convertible Senior Notes Due June 15, 2013 [Member] | Share lending arrangement [Member] | Share lending arrangement [Member] | Share lending arrangement [Member] | Conversion [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | American Depository Shares [Member] | American Depository Shares [Member] | American Depository Shares [Member] | Over-Allotment [Member] | Common Stock [Member] | Cash [Member] | Deposit [Member] | ||||
Share lending arrangement [Member] | Conversion [Member] | Conversion [Member] | Convertible Senior Notes Due June 15, 2013 [Member] | Conversion [Member] | Share lending arrangement [Member] | Share lending arrangement [Member] | ||||||||||||
Maximum [Member] | ||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible senior notes issued | ' | ' | ' | $54,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,500,000 | ' | ' | ' |
Convertible senior notes interest rate | ' | ' | ' | 4.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27.1 | 32.52 | ' | 18 | ' | ' |
Conversion amount | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, par value per share | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36.90 | $30.75 | ' | $0.00 | ' | ' |
Conversion denomination amount | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | 16,500,000 | ' | ' | ' | ' | ' | ' | ' |
Default percentage of principal amount, minimum | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance costs | 4,300,000 | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,477,000 | ' | ' | ' | ' | ' | ' |
Percentage of market value provided as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% |
Lending fee per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Collateral account payable | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value outstanding loaned shares | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of convertible senior notes | 15,934 | 964,749 | 1,630,061 | ' | 10,000 | 300,000 | 500,000 | ' | 10,000 | 700,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Payment of convertible senior notes repurchase | 1,500,000 | 15,651,250 | 9,060,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on repurchase of convertible senior notes | ' | $10,348,750 | $7,440,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MAINLAND_CHINA_CONTRIBUTION_PL1
MAINLAND CHINA CONTRIBUTION PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MAINLAND CHINA CONTRIBUTION PLAN [Abstract] | ' | ' | ' |
Total contributions | $5,900,000 | $6,200,000 | $6,100,000 |
PROFIT_APPROPRIATION_Details
PROFIT APPROPRIATION (Details) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | CNY | USD ($) | CNY | |
Distribution Of Profit [Abstract] | ' | ' | ' | ' |
General reserve fund annual appropriation after tax profit | 10.00% | 10.00% | ' | ' |
Amount of restricted paid-in capital and statutory reserve funds | $7,900,000 | 49,400,000 | $7,900,000 | 49,400,000 |
Restricted share capital | 284,600,000 | 789,200,000 | ' | ' |
Amount not available for distributions | $292,500,000 | 1,838,600,000 | ' | ' |
OTHER_EXPENSE_INCOME_NET_Detai
OTHER (EXPENSE) INCOME, NET (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
OTHER (EXPENSE) INCOME, NET [Abstract] | ' | ' | ' | |||
Foreign currency exchange gain (loss) , net | ($826) | $397,621 | ($10,649,047) | |||
Convertible notes repurchase gain | ' | 10,348,750 | 7,440,000 | |||
Government grants | 1,921,965 | 889,239 | 565,076 | |||
Gain on disposal of subsidiaries (Note (a)) | 2,196,198 | [1] | ' | [1] | ' | [1] |
Compensation in relation to dispute settlement (Note (b)) | 1,790,214 | [2] | ' | [2] | ' | [2] |
Forgiveness of interest owe to a related party | 2,436,882 | ' | ' | |||
Others | 630,354 | -148,672 | 744,162 | |||
Other (expense) income, net | $8,974,787 | $11,486,938 | ($1,899,809) | |||
[1] | The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company's wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd ("Jinchang New Sunshine") and Hami Huiteng Solar Power Co., Ltd ("Hami Huiteng"). Jinchang New Sunshine and Hami Huiteng were mainly engaged in photovoltaic project's engineering and sales, and were on their pre-operating stage. During the current year, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and Hami Huiteng, respectively. The disposals were completed on December 10, 2013. The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of US$1.5 million in Other (expense) income, net. The amount of the consideration for disposal of Hami Huiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of US$0.7 million in Other (expense) income, net. The disposals did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and Hami Huiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and Hami Huiteng after the disposal transaction. | |||||
[2] | The compensation in relation to dispute settlement is the compensation payment from a supplier due to its failure to provide the Company with solar modules pursuant to the agreement. |
OTHER_EXPENSE_INCOME_NET_Narra
OTHER (EXPENSE) INCOME, NET (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | |||
Gain on disposal of subsidiaries (Note (a)) | $2,196,198 | [1] | ' | [1] | ' | [1] |
Hami Huiteng Electrics Co., Ltd [Member] | ' | ' | ' | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | |||
Ownership percentage | 100.00% | ' | ' | |||
Consideration for disposal | 4,300,000 | ' | ' | |||
Collected | 2,700,000 | ' | ' | |||
Carrying value of the assets for sale | 3,600,000 | ' | ' | |||
Gain on disposal of subsidiaries (Note (a)) | 700,000 | [1] | ' | ' | ||
Jinchang New Sunshine Solar Power Co., Ltd [Member] | ' | ' | ' | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | |||
Ownership percentage | 100.00% | ' | ' | |||
Consideration for disposal | 1,900,000 | ' | ' | |||
Collected | 1,600,000 | ' | ' | |||
Carrying value of the assets for sale | 400,000 | ' | ' | |||
Gain on disposal of subsidiaries (Note (a)) | $1,500,000 | [1] | ' | ' | ||
[1] | The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company's wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd ("Jinchang New Sunshine") and Hami Huiteng Solar Power Co., Ltd ("Hami Huiteng"). Jinchang New Sunshine and Hami Huiteng were mainly engaged in photovoltaic project's engineering and sales, and were on their pre-operating stage. During the current year, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and Hami Huiteng, respectively. The disposals were completed on December 10, 2013. The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of US$1.5 million in Other (expense) income, net. The amount of the consideration for disposal of Hami Huiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of US$0.7 million in Other (expense) income, net. The disposals did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and Hami Huiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and Hami Huiteng after the disposal transaction. |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | EIT [Member] | Extended [Member] | Special circumstance [Member] | China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") [Member] | China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") [Member] | China Sunergy Trading (Hong Kong) Co., Limited [Member] | China Sunergy Trading (Hong Kong) Co., Limited [Member] | China Sunergy Trading (Hong Kong) Co., Limited [Member] | China Sunergy (Shanghai) Co., Ltd. ("Sunergy Nanjing") [Member] | China Sunergy (Shanghai) Co., Ltd. ("Sunergy Nanjing") [Member] | China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai") [Member] | CEEG (Shanghai) Solar Science Technology Co., Ltd. ("SST") [Member] | CEEG (Nanjing) Renewable Energy Co., Ltd ("NRE") [Member] | Hong Kong [Member] | PRC Subsidiaries [Member] | ||
CNY | EIT [Member] | EIT [Member] | EIT [Member] | EIT [Member] | EIT [Member] | USD ($) | ||||||||||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | ' | ' | 25.00% | ' | 25.00% | ' | ' |
Preferential tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 12.50% | ' | 15.00% | ' | ' | ' |
Tax exemption period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Enterprise income tax reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Enterprise income tax reduction period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Statue of limitations period | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' |
Underpayment of income tax liability in excess of | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated capital losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 193,800,000 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,800,000 |
Accumulated deficit | ($265,196,150) | ($214,587,069) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($273,500,000) |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Taxes by Tax Jurisdictions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income (loss) from operations before income tax: | ' | ' | ' |
PRC | ($42,999,102) | ($107,662,760) | ($111,763,011) |
Other jurisdictions | -7,482,743 | -9,635,640 | 3,698,354 |
Loss before income taxes | ($50,481,845) | ($117,298,400) | ($108,064,657) |
INCOME_TAXES_Schedule_of_Incom1
INCOME TAXES (Schedule of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current income tax expense: | ' | ' | ' |
PRC | ($1,981,113) | ' | ($822,238) |
Other jurisdictions | -1,881,831 | -339,223 | -2,866,755 |
Total current income tax expense | -3,862,944 | -339,223 | -3,688,993 |
Deferred income tax credit | ' | ' | ' |
PRC | 1,481,687 | -17,231,276 | 17,460,955 |
Other jurisdictions | 1,253,630 | 1,275,278 | ' |
Total deferred income tax credit | 2,735,317 | -15,955,998 | 17,460,955 |
Total income tax credit (expense) | ($1,127,627) | ($16,295,221) | $13,771,962 |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INCOME TAXES [Abstract] | ' | ' | ' |
PRC statutory enterprise income tax rate | 25.00% | 25.00% | 25.00% |
Different tax rates in other jurisdictions | -3.30% | -0.50% | 1.20% |
Other non-deductible expense for tax purposes | -5.30% | -0.20% | -0.10% |
Effect of tax holiday | -5.50% | -5.20% | -4.90% |
Effect of future tax rate change | 8.30% | 7.80% | -1.60% |
50% additional deduction of R&D expense | 1.20% | 0.70% | 0.80% |
Change in valuation allowance | -23.50% | -41.10% | -3.40% |
Others | 0.90% | -0.40% | -0.90% |
Effective income tax rate | -2.20% | -13.90% | 16.10% |
Gross tax exemption | $2,756,938 | $6,041,242 | $5,255,781 |
Tax holiday per share-basic | $0.01 | $0.03 | $0.02 |
Tax holiday per share-diluted | $0.01 | $0.03 | $0.02 |
Percentage of additional deduction of R&D | 50.00% | ' | ' |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Depreciation of property, plant and equipment | $2,188,731 | $1,720,769 |
Warranty costs | 5,058,369 | 4,231,091 |
Inventory write-down | 517,001 | 932,744 |
Allowance for doubtful accounts | 14,608,597 | 13,486,357 |
Tax losses carried forward | 51,570,404 | 39,472,810 |
Fixed assets impairment | 175,045 | 169,793 |
Others | 49,603 | 64,535 |
Gross total deferred tax assets | 74,167,750 | 60,078,099 |
Valuation allowance | -64,754,872 | -52,895,481 |
Net deferred tax assets | 9,412,878 | 7,182,618 |
Analysis as: | ' | ' |
Current | 1,922,242 | 1,727,054 |
Non-current | $7,490,636 | $5,455,564 |
INCOME_TAXES_Schedule_of_Defer1
INCOME TAXES (Schedule of Deferred Tax Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax liabilities: | ' | ' |
Intangible assets | ($451,042) | ($956,099) |
Analysis as: | ' | ' |
Current | -6,133 | -518,592 |
Non-current | -444,909 | -437,507 |
Total deferred tax liabilities | ($451,042) | ($956,099) |
SHAREBASED_COMPENSATION_Narrat
SHARE-BASED COMPENSATION (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Jan. 09, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2008 | Jan. 09, 2009 | Jan. 09, 2009 | Jan. 10, 2008 | Dec. 31, 2007 | Feb. 05, 2008 | Feb. 05, 2008 | Dec. 31, 2009 | Dec. 31, 2009 | |
Certain Employees [Member] | Consultant [Member] | Share Incentive Plan [Member] | Share Incentive Plan [Member] | Second Plan [Member] | Second Plan [Member] | Minimum [Member] | Maximum [Member] | |||||||
Restricted stock [Member] | ||||||||||||||
Options authorized | 260,002 | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 4,190,748 | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | 80,640 | 100,002 | 716,226 | 2,050,900 | 2,397,301 | 1,078,785 | ' | ' |
Vesting period for plan | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '4 years | '3 years | ' | ' | ' |
Contractual life of the option | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | '6 years | '10 years |
Price per share | $1.28 | ' | ' | ' | ' | ' | $0.70 | $0.70 | $1.28 | ' | ' | ' | ' | ' |
Share-based compensation | ' | ' | $217 | ($108,222) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of stock options granted | ' | ' | ' | ' | $0.22 | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Schedu
SHARE-BASED COMPENSATION (Schedule of Assumptions Used to Estimate Fair Value) (Details) | 0 Months Ended | 12 Months Ended |
Jan. 09, 2009 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Average risk-free rate of return, minimum | ' | 1.51% |
Average risk-free rate of return, maximum | ' | 2.40% |
Contractual life of the option | '10 years | ' |
Volatility rate | ' | 84.00% |
Dividend yield | ' | 0.00% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Contractual life of the option | ' | '6 years |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Contractual life of the option | ' | '10 years |
SHAREBASED_COMPENSATION_Schedu1
SHARE-BASED COMPENSATION (Schedule of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of Options | ' |
Outstanding | 344,190 |
Forfeited | -47,070 |
Outstanding at December 31, 2013 | 297,120 |
Weighted average exercise price | ' |
Outstanding | $1.20 |
Forfeited | $1.28 |
Outstanding at December 31, 2013 | $1.09 |
Weighted average remaining contractual term | ' |
Outstanding at December 31, 2013 | '2 years 7 months 24 days |
Aggregate intrinsic value | ' |
Outstanding at December 31, 2013 | ' |
RELATED_PARTY_TRANSACTIONS_AND2
RELATED PARTY TRANSACTIONS AND BALANCES (Amounts Due from Related Parties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | $83,986,853 | $67,006,828 |
Trade related balances [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | 78,319,560 | 63,801,695 |
Non-trade related balance [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | $5,667,293 | $3,205,133 |
RELATED_PARTY_TRANSACTIONS_AND3
RELATED PARTY TRANSACTIONS AND BALANCES (Trade Related Balances to Receivables and Prepayments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | $83,986,853 | $67,006,828 |
Trade Related Balances [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | 78,319,560 | 63,801,695 |
Trade Related Balances [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | 74,922,671 | 63,801,695 |
Trade Related Balances [Member] | China Electric Equipment Group Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | 1,833,709 | ' |
Trade Related Balances [Member] | CEEG (Nanjing) Solar Research Institute [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | 1,527,431 | ' |
Trade Related Balances [Member] | CEEG (Jiangsu) Insulative New Material Co.,Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due from related parties | $35,749 | ' |
RELATED_PARTY_TRANSACTIONS_AND4
RELATED PARTY TRANSACTIONS AND BALANCES (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | China Sunergy (Shanghai) Co., Ltd. ("Sunergy Nanjing") [Member] | NRE [Member] | Non-trade related balance [Member] | Non-trade related balance [Member] | Non-trade related balance [Member] | Non-trade related balance [Member] | Non-trade related balance [Member] | Non-trade related balance [Member] | Trade related balances [Member] | Trade related balances [Member] | Trade related balances [Member] | Trade related balances [Member] | Trade related balances [Member] | ||||
sqft | Nanjing, PRC to Turkey through China Electric Equipment Group Co., Ltd. and the others mainly pertains to Eco Energy s.r.l's [Member] | Nanjing, PRC to Turkey through China Electric Equipment Group Co., Ltd. and the others mainly pertains to Eco Energy s.r.l's [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | China Electric Equipment Group Co., Ltd. [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | China Electric Equipment Group Co., Ltd. [Member] | ||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from related parties | $83,986,853 | $67,006,828 | ' | ' | ' | ' | ' | ' | $5,667,293 | $3,205,133 | $3,963,883 | $2,065,787 | ' | ' | $78,319,560 | $63,801,695 | $74,922,671 | $63,801,695 | $1,833,709 |
Amounts due to related parties | 11,797,519 | 70,582,470 | ' | ' | ' | ' | ' | ' | 5,188,009 | 14,262,486 | ' | ' | 11,400,000 | 4,100,000 | 6,609,510 | 56,319,984 | 1,082,444 | 56,319,984 | 454,759 |
Land purchased for use | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased equipment and technology services | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Machinery transferred | 2,100,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings | ' | ' | ' | 28,713,240 | 116,935,560 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment | ' | ' | ' | 38,259,000 | 107,389,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan to related party | ' | ' | ' | 44,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forgiveness of interest owe to a related party | $2,436,882 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND5
RELATED PARTY TRANSACTIONS AND BALANCES (Amounts Due to Related Parties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | $11,797,519 | $70,582,470 |
Trade related balances [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 6,609,510 | 56,319,984 |
Non-trade related balance [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | $5,188,009 | $14,262,486 |
RELATED_PARTY_TRANSACTIONS_AND6
RELATED PARTY TRANSACTIONS AND BALANCES (Trade Related Balances to Payables and Pre-Collected Amounts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | $11,797,519 | $70,582,470 |
Trade Related Balances [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 6,609,510 | 56,319,984 |
Trade Related Balances [Member] | Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 3,181,214 | ' |
Trade Related Balances [Member] | China Electric Equipment Group Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 454,759 | ' |
Trade Related Balances [Member] | CEEG (Jiangsu) Intelligent Technology Co., Limited [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 190,067 | ' |
Trade Related Balances [Member] | CEEG (Jiangsu) Insulative New Material Co.,Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | 1,701,026 | ' |
Trade Related Balances [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amounts due to related parties | $1,082,444 | $56,319,984 |
RELATED_PARTY_TRANSACTIONS_AND7
RELATED PARTY TRANSACTIONS AND BALANCES (Sales to Related Parties) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | $316,185,694 | $292,721,361 | $566,291,755 |
Related Parties [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 9,851,128 | 5,832,301 | 10,170,102 |
CEEG Nanjing International Trade Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | ' | ' | 4,682 |
CEEG (Nanjing) Solar Research Institute [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 1,450,689 | 4,997,073 | 10,113,561 |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 247,563 | ' | 15,609 |
China Electric Equipment Group (Hong Kong) Co., Limited [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 71,852 | 245,341 | 36,250 |
China Electric Equipment Group Co., Limited [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 7,435,809 | 51,216 | ' |
CEEG (Jiangsu) Insulative New Material Co.,Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | 606,322 | 537,278 | ' |
CEEG Korea Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | ' | 1,393 | ' |
Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales | $38,893 | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND8
RELATED PARTY TRANSACTIONS AND BALANCES (Purchases from Related Parties) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | $37,222,184 | $35,863,775 | $73,373,091 |
China Electric Equipment Group Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | 4,778,993 | ' | ' |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | 21,449,705 | 32,011,217 | 73,351,421 |
Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | 4,811,590 | ' | ' |
CEEG (Jiangsu) Insulative New Material Co.,Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | 6,181,715 | 3,852,558 | 21,670 |
CEEG (Nanjing) Special Transformer Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of raw materials | $181 | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND9
RELATED PARTY TRANSACTIONS AND BALANCES (Short-Term Borrowings) (Details) (CEEG (Nanjing) Semiconductor Co., Ltd. [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Opening balance | ($9,545,760) | ' | ' |
Borrowings | 28,713,240 | 116,935,560 | ' |
Repayment | 38,259,000 | 107,389,800 | ' |
Closing balance | ' | ($9,545,760) | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Rent expense | $1,677,533 | $1,274,139 | $2,086,451 |
Silicon wafers [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Aggregate quantity of pieces to purchase | ' | 986,000,000 | ' |
Purchase agreement time period | ' | '4 years | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases (Details) (USD $) | Dec. 31, 2013 |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
2014 | $1,837,773 |
2015 | 1,684,326 |
2016 | 105,598 |
2017 | 58,051 |
2018 | 29,523 |
Over 5 years | 61,507 |
Future minimum lease payments | $3,776,778 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Purchase Commitments) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Purchase commitments | $858,487,886 | $919,719,752 | $1,365,148,673 |
Property, plant and equipment [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Purchase commitments | 13,356,755 | 20,415,660 | 51,095,125 |
Silicon raw materials [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Purchase commitments | $845,131,131 | $899,304,092 | $1,314,053,548 |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Schedule of Purchase Commitments for Property, Plant and Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
Total | $858,487,886 | $919,719,752 | $1,365,148,673 |
Property, plant and equipment [Member] | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' |
2014 | 12,672,844 | ' | ' |
2015 | 666,323 | ' | ' |
2016 | 17,588 | ' | ' |
Total | $13,356,755 | $20,415,660 | $51,095,125 |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Schedule of Long-Term Supply Agreements) (Details) (USD $) | Dec. 31, 2013 |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
2014 | $281,710,377 |
2015 | 281,710,377 |
2016 | 281,710,377 |
Total | $845,131,131 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | $316,185,694 | $292,721,361 | $566,291,755 |
Germany [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 43,997,078 | 65,979,111 | 57,314,051 |
Italy [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 7,747,266 | 45,429,510 | 170,680,970 |
Spain [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 1,558,828 | 656,723 | 4,432,090 |
Belgium [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 1,319,670 | 1,953,916 | 46,114,145 |
France [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 48,504,587 | 19,758,758 | 58,439,157 |
Czech Republic and Slovakia [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 1,806,237 | 5,699,269 | 28,259,894 |
Bulgaria [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 1,886,258 | 22,300,958 | ' |
UK [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 6,055,612 | 11,844,591 | ' |
Others [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 36,316,562 | 34,582,052 | 42,375,518 |
Europe [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 149,192,098 | 208,204,888 | 407,615,825 |
PRC [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 97,038,992 | 29,148,928 | 38,086,463 |
India [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 26,943,051 | 867,177 | 49,415,452 |
South Korea [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | ' | 14,244 | 7,234 |
Australia [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 7,783,075 | 39,605,278 | 32,599,218 |
America [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 1,837,797 | 1,932,147 | 3,991,732 |
Japan [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 31,313,082 | ' | ' |
Others [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | $2,077,599 | $12,948,699 | $34,575,831 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], China Electric Equipment Group Co., Ltd. [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Subsequent Event [Line Items] | ' | ' |
Ownership percentage | 100.00% | 100.00% |
Total consideration | $37,700,000 | 231,200,000 |
Cash proceeds | $13,000,000 | 79,600,000 |
SCHEDULE_I_BALANCE_SHEET_Detai
SCHEDULE I (BALANCE SHEET) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Amount due from subsidiaries | $83,986,853 | $67,006,828 |
Total current assets | 500,049,660 | 678,471,236 |
Property, plant and equipment, net | 223,624,186 | 205,706,724 |
Total assets | 764,652,946 | 923,085,343 |
Current liabilities: | ' | ' |
Convertible senior notes payable | ' | 1,500,000 |
Total current liabilities | 512,496,481 | 771,698,212 |
Total liabilities | 809,039,391 | 916,765,366 |
Equity (deficit): | ' | ' |
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 267,287,253 shares issued and outstanding as of December 31, 2012 and 240,701,253 issued and outstanding as of December 31, 2013) | 24,070 | 26,729 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | ' |
Accumulated deficit | -265,196,150 | -214,587,069 |
Accumulated other comprehensive income | 36,070,581 | 35,523,388 |
Total equity | -43,731,798 | 6,330,090 |
TOTAL LIABILITIES AND EQUITY | 764,652,946 | 923,085,343 |
Parent Company [Member] | ' | ' |
Current assets: | ' | ' |
Cash | 401,680 | 298,551 |
Amount due from subsidiaries | 79,100,696 | 81,419,439 |
Other receivables | 221,884 | 160,086 |
Restricted cash-collateral account | ' | 2,097,340 |
Convertible senior notes issuance cost | ' | 15,934 |
Total current assets | 79,724,260 | 83,991,350 |
Investments in subsidiaries | -123,416,770 | -73,268,494 |
Property, plant and equipment, net | 3,511 | ' |
Total assets | -43,688,999 | 10,722,856 |
Current liabilities: | ' | ' |
Other liabilities | 42,799 | 795,426 |
Collateral account payable | ' | 1,500,000 |
Convertible senior notes payable | ' | 2,097,340 |
Total current liabilities | 42,799 | 4,392,766 |
Total liabilities | 42,799 | 4,392,766 |
Equity (deficit): | ' | ' |
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 267,287,253 shares issued and outstanding as of December 31, 2012 and 240,701,253 issued and outstanding as of December 31, 2013) | 24,070 | 26,729 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | ' |
Accumulated deficit | -265,196,150 | -214,587,069 |
Accumulated other comprehensive income | 36,070,581 | 35,523,388 |
Total equity | -43,731,798 | 6,330,090 |
TOTAL LIABILITIES AND EQUITY | ($43,688,999) | $10,722,856 |
SCHEDULE_I_BALANCE_SHEET_Paren
SCHEDULE I (BALANCE SHEET) (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Ordinary shares, par value per share | $0.00 | $0.00 |
Ordinary shares, shares authorized | 463,247,600 | 463,247,600 |
Ordinary shares, shares issued | 240,701,253 | 267,287,253 |
Ordinary shares, shares outstanding | 240,701,253 | 267,287,253 |
Parent Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Ordinary shares, par value per share | $0.00 | $0.00 |
Ordinary shares, shares authorized | 463,247,600 | 463,247,600 |
Ordinary shares, shares issued | 267,287,253 | 267,287,253 |
Ordinary shares, shares outstanding | 267,287,253 | 267,287,253 |
SCHEDULE_I_STATEMENT_OF_OPERAT
SCHEDULE I (STATEMENT OF OPERATIONS) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
General and administrative expenses | ($30,010,529) | ($75,874,984) | ($41,182,119) |
Total operating expenses | -52,449,245 | -104,539,712 | -81,855,648 |
Loss from operations | -37,237,256 | -105,732,514 | -80,038,016 |
Interest expense | -28,805,652 | -28,838,328 | -23,458,361 |
Interest income | 6,586,276 | 6,154,813 | 2,505,432 |
Other income, net | 8,974,787 | 11,486,938 | -1,899,809 |
Net loss | -50,609,081 | -133,580,664 | -94,292,695 |
Parent Company [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
General and administrative expenses | -1,367,729 | -1,982,550 | -706,531 |
Total operating expenses | -1,367,729 | -1,982,550 | -706,531 |
Loss from operations | -1,367,729 | -1,982,550 | -706,531 |
Interest expense | -67,583 | -1,426,848 | -3,794,996 |
Interest income | 1,568,461 | 929,636 | 755,895 |
Equity in gains (losses) of subsidiaries | -50,695,469 | -141,703,447 | -99,222,232 |
Other income, net | -46,761 | 10,602,545 | 8,675,169 |
Net loss | ($50,609,081) | ($133,580,664) | ($94,292,695) |
SCHEDULE_1_STATEMENT_OF_COMPRE
SCHEDULE 1 STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net loss attributable to China Sunergy Co., Ltd. | ($50,609,081) | ($133,580,664) | ($94,292,695) |
Other comprehensive income (loss): foreign currency translation adjustments, net of tax impact nil for 2011, 2012 and 2013 | 584,066 | 824,167 | 6,678,512 |
Comprehensive income (loss) | -50,061,888 | -132,756,541 | -87,614,183 |
Parent Company [Member] | ' | ' | ' |
Net loss attributable to China Sunergy Co., Ltd. | -50,609,081 | -133,580,664 | -94,292,695 |
Other comprehensive income (loss): foreign currency translation adjustments, net of tax impact nil for 2011, 2012 and 2013 | 547,193 | 824,123 | 6,678,512 |
Comprehensive income (loss) | ($50,061,888) | ($132,756,541) | ($87,614,183) |
SCHEDULE_1_STATEMENT_OF_COMPRE1
SCHEDULE 1 STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Details) (Parent Company [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Parent Company [Member] | ' | ' | ' |
Foreign currency translation, tax | ' | ' | ' |
SCHEDULE_I_STATEMENT_OF_CASH_F
SCHEDULE I (STATEMENT OF CASH FLOWS) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net loss attributable to China Sunergy Co., Ltd. | ($50,609,081) | ($133,580,664) | ($94,292,695) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | ' |
Share-based compensation | ' | 217 | -108,222 |
Gain on repurchase of convertible senior notes | ' | -10,348,750 | -7,440,000 |
Amortization of convertible senior notes | 15,934 | 964,749 | 1,630,061 |
Others | 112,339 | 152,554 | -223,638 |
Changes in operating assets and liabilities: | ' | ' | ' |
Amounts due from subsidiaries | -16,980,025 | -36,750,808 | 12,321,646 |
Net cash provided by (used in) operating activities | -103,145,212 | -15,612,697 | -112,912,407 |
Investing activities: | ' | ' | ' |
Decrease in restricted cash | 32,415,250 | -142,176,204 | 553,448 |
Purchase of PPE | -40,901,214 | -44,288,415 | -60,676,805 |
Net cash provided by investing activities | 2,196,514 | -183,446,465 | -60,096,424 |
Financing activities: | ' | ' | ' |
Payment of convertible senior notes repurchase | -1,500,000 | -15,651,250 | -9,060,000 |
Net cash used in financial activities | -30,895,326 | 171,163,933 | 260,935,357 |
Net increase (decrease) in cash and cash equivalents | -129,016,840 | -26,166,447 | 103,010,794 |
Cash and cash equivalents at the beginning of the year | 183,312,417 | 209,478,864 | 106,468,070 |
Cash and cash equivalents at the end of the year | 54,295,577 | 183,312,417 | 209,478,864 |
Supplemental disclosure of non-cash investing activities: | ' | ' | ' |
Restricted cash collateral received in connection with share-lending arrangement | -2,097,340 | 443,100 | -16,867,340 |
Parent Company [Member] | ' | ' | ' |
Operating activities: | ' | ' | ' |
Net loss attributable to China Sunergy Co., Ltd. | -50,609,081 | -133,580,664 | -94,292,695 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | ' |
Equity in gains/losses of subsidiaries | 50,695,469 | 141,703,447 | 99,222,232 |
Share-based compensation | ' | 217 | -108,222 |
Gain on repurchase of convertible senior notes | ' | -10,348,750 | -7,440,000 |
Amortization of convertible senior notes | 15,934 | 964,750 | 1,630,060 |
Others | ' | -256,363 | -223,637 |
Changes in operating assets and liabilities: | ' | ' | ' |
Other receivables | -61,798 | -52,466 | 200,758 |
Other liabilities | -752,627 | -11,832 | -876,334 |
Amounts due from subsidiaries | 2,318,743 | 15,517,779 | -1,300,418 |
Net cash provided by (used in) operating activities | 1,606,640 | 13,936,118 | -3,188,256 |
Investing activities: | ' | ' | ' |
Decrease in restricted cash | ' | ' | 11,250,000 |
Purchase of PPE | -3,511 | ' | ' |
Net cash provided by investing activities | -3,511 | ' | 11,250,000 |
Financing activities: | ' | ' | ' |
Payment of convertible senior notes repurchase | -1,500,000 | -15,651,250 | -9,060,000 |
Net cash used in financial activities | -1,500,000 | -15,651,250 | -9,060,000 |
Net increase (decrease) in cash and cash equivalents | 103,129 | -1,715,132 | -998,256 |
Cash and cash equivalents at the beginning of the year | 298,551 | 2,013,683 | 3,011,939 |
Cash and cash equivalents at the end of the year | 401,680 | 298,551 | 2,013,683 |
Supplemental disclosure of non-cash investing activities: | ' | ' | ' |
Restricted cash collateral received in connection with share-lending arrangement | ' | $443,100 | ($16,867,340) |