Document and Entity Information
Document and Entity Information - Dec. 31, 2014 - shares | Total |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2014 |
Entity Registrant Name | CHINA SUNERGY CO., LTD. |
Entity Central Index Key | 1,396,247 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,014 |
Entity Filer Category | Non-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, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $ 42,078,988 | $ 54,295,577 |
Restricted cash | 179,395,642 | 194,195,634 |
Accounts receivable, net of allowance for doubtful accounts of $64,940,205 and $59,049,747 in 2013 and 2014, respectively | $ 60,321,806 | 81,405,181 |
Notes receivable | 741,025 | |
Advance to suppliers | $ 5,882,359 | 7,193,667 |
Amounts due from related parties | 88,047,478 | 83,986,853 |
Inventories | 52,883,224 | 44,657,654 |
Project assets | 8,221,927 | 10,154,775 |
Deferred tax assets | 2,075,802 | 1,922,242 |
VAT receivable | 8,646,992 | 11,222,644 |
Prepaid expense and other current assets | 10,662,715 | 10,274,408 |
Total current assets | 458,216,933 | 500,049,660 |
Property, plant and equipment, net | 226,799,680 | 223,624,186 |
Prepaid land use rights | 23,375,126 | 27,884,740 |
Deferred tax assets | 7,491,580 | 7,490,636 |
Other long-term assets | 5,008,550 | 5,603,724 |
TOTAL ASSETS | 720,891,869 | 764,652,946 |
Current liabilities: | ||
Short-term bank borrowings | 356,793,246 | 304,827,038 |
Current portion of long-term debt | 20,412,210 | 35,427,888 |
Accounts payable | 90,162,387 | 97,029,603 |
Notes payable | 13,280,834 | 39,899,624 |
Amounts due to related parties | 9,120,781 | 11,797,519 |
Accrued payroll and welfare | 2,460,743 | 3,300,135 |
Advance from customers | 4,622,795 | 5,377,783 |
Accrued expenses and other current liabilities | $ 11,230,670 | 11,462,484 |
Deferred tax liability | 6,133 | |
Income tax payable | $ 3,445,049 | 3,368,274 |
Total current liabilities | 511,528,715 | 512,496,481 |
Long-term debt | 272,348,001 | 265,975,939 |
Deferred tax liability | 262,926 | 444,909 |
Accrued warranty cost | 22,417,835 | 20,129,274 |
Other liabilities | 14,825,487 | 9,992,788 |
Total liabilities | $ 821,382,964 | $ 809,039,391 |
Commitments and contingencies (Note 16) | ||
Equity (deficit): | ||
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 240,701,253 shares issued and outstanding as of December 31, 2013 and December 31, 2014) | $ 24,070 | $ 24,070 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | 2,659 |
Accumulated deficit | (321,292,516) | (265,196,150) |
Accumulated other comprehensive income | 35,908,829 | 36,070,581 |
Total (deficit) attributable to China Sunergy Co., Ltd. | (99,989,916) | (43,731,798) |
Noncontrolling interest | (501,179) | (654,647) |
Total (deficit) | (100,491,095) | (44,386,445) |
TOTAL LIABILITIES AND EQUITY | $ 720,891,869 | $ 764,652,946 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 59,049,747 | $ 64,940,205 |
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 463,247,600 | 463,247,600 |
Ordinary shares, shares issued | 240,701,253 | 240,701,253 |
Ordinary shares, shares outstanding | 240,701,253 | 240,701,253 |
Treasury shares, par value per share | $ 0.0001 | $ 0.0001 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | $ 341,107,697 | $ 316,185,694 | $ 292,721,361 |
Cost of revenues | (330,485,778) | (300,973,705) | (293,914,163) |
Gross profit (loss) | 10,621,919 | 15,211,989 | (1,192,802) |
Selling and marketing expenses | (13,168,297) | (16,416,359) | (20,055,854) |
General and administrative expenses | (25,246,986) | (30,010,529) | (75,874,984) |
Research and development expenses | (3,169,975) | (6,022,357) | (8,608,874) |
Total operating expenses | (41,585,258) | (52,449,245) | (104,539,712) |
Loss from operations | (30,963,339) | (37,237,256) | (105,732,514) |
Interest expense | (27,918,904) | (28,805,652) | (28,838,328) |
Interest income | $ 5,606,718 | $ 6,586,276 | 6,154,813 |
Changes in fair value of derivatives | (369,309) | ||
Other income (expense), net | $ (2,605,310) | $ 8,974,787 | 11,486,938 |
Loss before income taxes | (55,880,835) | (50,481,845) | (117,298,400) |
Income tax expense | (614,285) | (1,127,627) | (16,295,221) |
Net loss | (56,495,120) | (51,609,472) | (133,593,621) |
Less: Net loss attributable to noncontrolling interest | (398,754) | (1,000,391) | (12,957) |
Net loss attributable to ordinary shareholders of China Sunergy Co., Ltd. | $ (56,096,366) | $ (50,609,081) | $ (133,580,664) |
Net loss per share: | |||
Basic and diluted | $ (0.21) | $ (0.20) | $ (0.55) |
Share used in calculating basic and diluted loss per share | 267,287,253 | 255,102,003 | 240,701,253 |
Third parties [Member] | |||
Revenues | $ 331,039,143 | $ 306,334,566 | $ 286,889,060 |
Cost of revenues | (319,890,205) | (291,372,403) | (288,004,932) |
Related parties [Member] | |||
Revenues | 10,068,554 | 9,851,128 | 5,832,301 |
Cost of revenues | $ (10,595,573) | $ (9,601,302) | $ (5,909,231) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net loss | $ (56,495,120) | $ (51,609,472) | $ (133,593,621) |
Other comprehensive income: | |||
Foreign currency translation adjustments, net of tax impact of nil, for 2012, 2013 and 2014 | (269,475) | 584,066 | 824,167 |
Total comprehensive loss | (56,764,595) | (51,025,406) | (132,769,454) |
Less: Comprehensive loss attributable to noncontrolling interest | (506,477) | (963,518) | (12,913) |
Comprehensive loss attributable to ordinary shareholders of China Sunergy Co., Ltd. | $ (56,258,118) | $ (50,061,888) | $ (132,756,541) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) - 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, 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 | ||||
Noncontolling 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 | ||||
Noncontolling 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 | |||||
Share-based compensation | |||||||
Net loss | $ (56,495,120) | $ (56,096,366) | (398,754) | ||||
Other comprehensive income | (269,475) | $ (161,752) | (107,723) | ||||
Noncontolling interest capital injection | 659,945 | 659,945 | |||||
Balance at Dec. 31, 2014 | $ (100,491,095) | $ 24,070 | $ 185,367,042 | $ 2,659 | $ (321,292,516) | $ 35,908,829 | $ (501,179) |
Balance, shares at Dec. 31, 2014 | 240,701,253 | 26,586,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating activities: | ||||
Net loss | $ (56,495,120) | $ (51,609,472) | $ (133,593,621) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 20,054,717 | 22,663,879 | 19,872,497 | |
Bad debt provision | $ (4,799,411) | $ 500,329 | 47,400,809 | |
Share-based compensation | 217 | |||
Loss from disposal of property, plant and equipment | $ 675,054 | $ 156,593 | $ 10,152 | |
Project assets impairment | 1,608,505 | |||
Inventory write-down | $ 1,353,770 | $ 1,663,051 | $ 6,925,478 | |
Loss on changes in fair value of derivatives | 369,309 | |||
Gain on repurchase of convertible senior notes | (10,348,750) | |||
Amortization of convertible senior notes issuance cost and Share Lending Agreement | $ 15,934 | $ 964,749 | ||
Gain on disposal of subsidiaries | [1] | $ (9,150,952) | (2,196,198) | |
Others | 166,414 | 112,339 | $ 152,554 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable and notes receivable | 27,714,858 | (6,891,374) | 27,649,693 | |
Amounts due from related parties | 2,732,663 | (16,980,025) | (36,750,808) | |
Advance to suppliers | 1,311,308 | (1,873,321) | 48,681 | |
Inventories | $ (10,004,326) | 37,534,916 | (46,803,682) | |
Project assets | (5,393,761) | 4,442,922 | ||
Prepaid expenses and other current assets and VAT receivable | $ 2,187,345 | 7,046,015 | 20,023,346 | |
Other long-term assets | 428,760 | (2,798,282) | 2,899,490 | |
Deferred tax assets | (342,620) | (2,735,317) | 15,955,998 | |
Accounts payable and notes payable | (37,589,057) | (27,101,093) | 49,643,649 | |
Amount due to related parties | (2,676,738) | (58,784,951) | 12,972,949 | |
Accrued expenses and other liabilities and Advance from suppliers | 245,646 | 495,461 | 5,434,253 | |
Income tax payable | $ 76,775 | $ 3,030,065 | 2,942,606 | |
Prepaid land use rights | (5,825,188) | |||
Net cash used in operating activities | $ (62,502,409) | $ (103,145,212) | (15,612,697) | |
Investing activities: | ||||
Purchases of property, plant and equipment | (20,193,342) | (40,901,214) | (44,288,415) | |
Subsidy received from local government to purchase plant and equipment | 4,718,080 | $ 6,418,016 | $ 3,018,154 | |
Proceeds from disposal of property, plant and equipment | 1,171,638 | |||
Proceeds from disposal of subsidiaries | 6,793,288 | $ 4,264,462 | ||
Change in restricted cash | 14,799,992 | 32,415,250 | $ (142,176,204) | |
Net cash provided by (used in) investing activities | 7,289,656 | 2,196,514 | $ (183,446,465) | |
Financing activities: | ||||
Capital injection from noncontrolling interest | $ 659,945 | 318,984 | ||
Repurchase of convertible senior notes | (1,500,000) | $ (15,651,250) | ||
Proceeds from short-term bank borrowings | $ 494,568,328 | 614,276,765 | 653,773,767 | |
Proceeds from long-term bank borrowings | 81,503,071 | 62,370,160 | 46,137,937 | |
Repayment of bank borrowings | (527,074,770) | (706,361,235) | (513,096,521) | |
Net cash provided by (used in) financing activities | 49,656,574 | (30,895,326) | 171,163,933 | |
Effect of exchange rate changes on cash and cash equivalents | (6,660,410) | 2,827,184 | 1,728,782 | |
Net increase (decrease) in cash and cash equivalents | (12,216,589) | (129,016,840) | (26,166,447) | |
Cash and cash equivalents at the beginning of the year | 54,295,577 | 183,312,417 | 209,478,864 | |
Cash and cash equivalents at the end of the year | 42,078,988 | 54,295,577 | 183,312,417 | |
Supplemental disclosure of cash flow information: | ||||
Interest paid, net of interest capitalized | 29,790,059 | 27,501,427 | 27,671,213 | |
Income taxes paid | $ 558,017 | 832,879 | 1,014 | |
Supplemental disclosure of non-cash investing activities: | ||||
Restricted cash collateral received (paid) in connection with Share Lending Agreement | (2,097,340) | 443,100 | ||
Purchase of property, plant and equipment included in accounts payable | $ 23,262,943 | $ 19,159,892 | $ 21,972,470 | |
[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 the photovoltaic project's engineering and sales, and were on their pre-operating stage. During the year of 2013, 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 $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 $0.7 million in Other (expense) income, net. The disposal 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. The gain on disposal of subsidiary for the year ended December 31, 2014 arose from disposal of the Company's wholly owned subsidiary, China Sunergy (Shanghai) Co., Ltd. (“Sunergy Shanghai”). Sunergy Shanghai was mainly engaged in Solar cells manufacturing, and was not in operation due to the over-capacity of the Solar cells manufacturing according to the best market estimation from the management. During the current year, the Company entered into a sale agreement with China Electric Equipment Group Co., Ltd. to dispose of its 100% equity interest in Sunergy Shanghai. The disposal was completed on April 3, 2014. The amount of the consideration for disposal of Sunergy Shanghai was $37.6 million and $24.6 million was settled through forgiveness of the amount due from the Group by Sunergy Shanghai and the Group expected to receive the net cash consideration of $13.0 million, of which $ 6.8 million has been collected. The carrying amount of net assets on the date of disposal was $28.4 million. The Company recorded a disposal gain of US$9.2 million in Other (expense) income, net. The disposal did not constitute discontinued operation as the Company disposed Sunergy Shanghai to a related party and the Company intends to have continuation of activities with Sunergy Shanghai, such as significant business and in and out cash-flows, after the disposal transaction. |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014, 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. ("China Sunergy BVI") Investment Holding January 27, 2006 100 % British Virgin Islands China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") Investment Holding December 7, 2007 100 % Hong Kong China Sunergy Europe Gmbh Marketing Service November 27, 2007 100 % Germany China Sunergy (Nanjing) Co., Ltd. ("Sunergy Nanjing") Solar cells manufacturing August 2, 2004 100 % PRC CEEG (Shanghai) Solar Science Technology Co., Ltd. ("SST") Modules manufacturing November 1, 2010 100 % PRC CEEG (Nanjing) Renewable Energy Co., Ltd ("NRE") Modules manufacturing November 1, 2010 100 % PRC China Sunergy (US) Clean Tech Inc Sales & Marketing service April 8, 2011 100 % US CSUN Trading (Hong Kong) Co., Limited Trading May 4, 2011 100 % Hong Kong China Sunergy (Yangzhou) Co., Ltd. Solar cell Manufacturing and Research& Development (R&D) June 30, 2011 100 % PRC China Sunergy Luxembourg S.A Photovoltaic project's Engineering & sales August 5, 2011 100 % Luxembourg CSUN International (Hong Kong) Co., Ltd Investment Holding March 22, 2012 100 % Hong Kong CSUN Holding (Luxembourg) s.a.r.l Investment Holding April 26, 2012 100 % Luxembourg CSUN Renewable Energy (France) S.A.R.L Marketing service May 29, 2012 100 % France CSUN Holding UK LTD Photovoltaic project's Engineering & sales July 17, 2012 100 % UK CSUN Italy S.R.L Marketing service August 29, 2012 100 % Italy AEE Renewable UK 6 Photovoltaic Project October 30, 2012 100 % UK AEE Renewable UK 7 Photovoltaic Project October 30, 2012 100 % UK CSUN Eurasia Energy Systems Industry and Trade Inc. Modules manufacturing November 12, 2012 80 % Turkey CSUN Eurasia Energy Technologies Industry and Trade Inc. Solar cells manufacturing November 12, 2012 80 % Turkey Lianyungang Yuanhui Solar Power Photovoltaic project's Engineering and sales July 15, 2013 100 % PRC China Sunergy ( Nanjing ) Solar Energy Co., Ltd. Solar cell, modules Manufacturing ,R&D and sales April 30, 2014 100 % PRC China Sunergy (Nanjing) Power Science & Technology Co., Ltd. Solar cell, modules Manufacturing ,R&D and sales April 30, 2014 100 % PRC Juancheng Xingze Solar Electric Power Co., Ltd. Photovoltaic project's Engineering and sales March 21, 2014 100 % PRC CSUN Energy Solutions Australia Pty Ltd. Photovoltaic project's Engineering and sales April 30, 2014 100 % Australia CSUN Australia Pty. Ltd. Sales & Marketing service March 19, 2014 100 % Australia CSUN (Japan) Solar Energy Co., Ltd. Trading Solar cell, modules March 20, 2014 70 % Japan CSUN Energy Investment Inc. Manufacturing & sales Photovoltaic project's March 10, 2014 80 % Turkey Korea Sunergy Co., Ltd. Engineering and sales Solar cells manufacturing December 23, 2014 50 % South Korea |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
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 0.59 0.63 For the year ended December 31, 2014, the Group incurred an operating loss of $ 31.0 37.2 During the year ended December 31, 2014, the Group experienced negative cash flow of $ 62.5 As of December 31, 2014, the Group's current liabilities exceed its current assets by $ 53.3 42.1 179.4 356.8 20.4 These factors are mitigated by the following plans and actions: The Group has entered into a written agreement with five commercial banks who agreed to continue providing financial support to the Group, including extensions and renewals of existing loans, representing 76% of the total outstanding loans from these banks as of December 31, 2014. 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, 2015 to March 31, 2015, the Group renewed short-term bank borrowings of $ 88.2 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 us to stay closer to the European market than certain of our competitors which only conduct manufacturing operations in China, capture business opportunities in emerging solar power markets such as 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. In fourth quarter of 2014, the Group established a plant to manufacture solar products in South Korea. The Group believes this will increase its overseas production capacities which enable us to expand to the East Asia market. 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, inventory valuation, allowance on accounts receivable and supplier advances, provision of warranty costs, 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 the 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, 2013 2014 $ $ Project assets Module cost 2,816,687 2,227,804 Project assets Development 7,338,088 5,994,123 Total 10,154,775 8,221,927 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 were nil 1,608,505 (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 Machinery 10 Furniture, fixtures and equipment 5 Motor vehicles 5 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 $ 3,180,454 3,816,232 4,425,863 (j) Prepaid land use rights Prepaid land use rights are recorded at cost and are amortized ratably over 50 (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 (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. (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, 2012, 2013 and 2014. (n) 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, 2012, 2013 and 2014, 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. (o) 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 45 Taxes collected from customers and remitted to governmental authorities are excluded from revenues and such taxes are presented on a net basis. (p) Buy-and-sell arrangements 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 were all to maintain the quantity and quality of the Group's solar cell supply, which were 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. In 2014, the Group entered into arrangements wherein the Group purchases accessorial raw material 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, 2012 2013 2014 $ $ $ Sell: Solar wafer 7,459,649 155,869 1,586,980 Solar cell - - 1,976,141 Solar module 1,148,789 1,790,579 14,297,671 Purchase: Raw material - 2,704,839 3,292,306 Solar cell 26,887,923 382,716 11,971,938 (q) Cost of revenue Cost of revenue includes production and indirect costs, as well as warranty costs. (r) Research and development Research and development ("R&D") costs are expensed when incurred. (s) Advertising expenses Advertising costs are expensed as incurred. The Group incurred advertising costs amounting to $ 2,665,486 938,330 783,942 (t) 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 $ 3,747,564 4,890,611 4,781,150 (u) Warranty cost Solar modules are typically sold with up to 25 five ten 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 0.1 0.26 The movement of the Group's accrued warranty costs is summarized below: Years ended December 31, 2012 2013 2014 $ $ $ Beginning balance 14,763,321 17,163,711 20,129,274 Addition 2,760,248 3,366,686 2,785,113 Claimed (359,858 ) (401,123 ) (496,552 ) Ending balance 17,163,711 20,129,274 22,417,835 (v) 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 2014, the Company received government grants of $ 4.7 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 2014, approximately $ 0.95 0.2 (w) 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). (x) 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. (y) 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 $ 209,116,209 164,193,726 (z) 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, 2012 2013 2014 $ $ $ Opening balance (15,869,894 ) (63,006,093 ) (64,940,205 ) Addition (47,400,809 ) (10,337,119 ) - Reversal - 9,836,790 4,799,411 Write-off 361,049 - - Effect of exchange rate change in foreign currency (96,439 ) (1,433,783 ) 1,091,047 Ending balance (63,006,093 ) (64,940,205 ) (59,049,747 ) The reversal of $4.8 million was due to the collection of accounts receivable for which bad debt provision was recorded prior to 2014. 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, 2012, 2013 or 2014. Accounts receivable from customers accounting for 10% or more of total gross accounts receivable are as follows: Name of Customer At December 31, 2013 2014 Company A 22 % 21 % Company B 11 % * * Less than 10% (aa) 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, 2012, 2013 and 2014, 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, 2012 2013 2014 $ $ $ Outstanding options and restricted shares 344,190 297,120 202,310 Assumed conversion of convertible senior notes 4,811,408 - - Total 5,155,598 297,120 202,310 The following table sets forth the computation of basic and diluted income per share for the periods indicated: Years ended December 31, 2012 2013 2014 Net loss attributable to ordinary shareholders- for the calculation of basic loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Weightedaverage ordinary shares outstanding- for the calculation of basic loss per share 240,701,253 255,102,003 267,287,253 Weightedaverage ordinary shares outstanding- for the calculation of diluted loss per share 240,701,253 255,102,003 267,287,253 Net loss per share: Basic $ (0.55 ) $ (0.20 ) $ (0.21 ) Diluted $ (0.55 ) $ (0.20 ) $ (0.21 ) (bb) 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. (cc) Recently issued accounting pronouncements In January 2015, the FASB issued guidance on simplifying the income statement presentation by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This amendment is effective for annual periods beginning after December 15, 2015. The adoption of this standard is not expected to have a material impact on our consolidated financial position or results of operations. In August 2014, the FASB issued guidance on the presentation of financial statements when there is substantial doubt about an entity's ability to continue as a going concern. The amendment requires that an entity's management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about an entity's ability to continue as a going concern, additional disclosure is required to enable users of the financial statements to understand the conditions or events, management's evaluation of the significance of those conditions and management's plans that are intended to alleviate or management's plans that have alleviated substantial doubt. The amendment is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's consolidated financial position or results of operations In June 2014, the FASB issued guidance on stock compensation. The amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendment is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Earlier adoption is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's consolidated financial position or results of operations. In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on the Company's consolidated financial statements, if any, including which transition method it will adopt. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2014 | |
INVENTORIES [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories consist of the following: At December 31, 2013 2014 $ $ Raw materials 11,170,602 26,697,632 Work-in-process 12,528,549 990,073 Finished goods 20,958,503 25,195,519 Inventories 44,657,654 52,883,224 In 2012, 2013 and 2014, inventories were written down by $ 6,925,478 1,663,051 1,353,770 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2014 | |
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, 2013 2014 $ $ Buildings 62,472,729 63,695,930 Plant and machinery 144,361,757 158,824,781 Furniture, fixtures and equipment 14,117,389 14,733,578 Motor vehicles 1,665,289 1,616,276 222,617,164 238,870,565 Less: Accumulated depreciation (88,912,568 ) (107,510,326 ) 133,704,596 131,360,239 Construction in process 89,919,590 95,439,441 Property, plant and equipment, net 223,624,186 226,799,680 Depreciation expense was $ 16,382,485 20,014,581 19,487,405 Construction in progress primarily represents the construction of a research and development building that includes several new production lines and the machinery under installation. |
PREPAID LAND USE RIGHTS
PREPAID LAND USE RIGHTS | 12 Months Ended |
Dec. 31, 2014 | |
PREPAID LAND USE RIGHTS [Abstract] | |
PREPAID LAND USE RIGHTS | 5. PREPAID LAND USE RIGHTS At December 31, 2013 2014 $ $ Prepaid land use rights, cost 30,086,477 25,627,478 Less: Accumulated amortization (2,201,737 ) (2,252,352 ) Prepaid land use rights, net 27,884,740 23,375,126 The Group disposed of Sunergy Shanghai during 2014, a subsidiary mainly engaged in Solar cells manufacturing. With the transaction, $ 4,465,743 523,530 Amortization expense was $ 637,687 662,677 567,312 In 2015, 2016, 2017, 2018 and 2019, the Group will record annual amortization expense of approximately $ 567,312 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2014 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | 6. INTANGIBLE ASSETS, NET The intangible assets were acquired in 2010 through the business acquisition, and amortization expense was $ 2,852,325 1,986,621 |
BANK BORROWINGS
BANK BORROWINGS | 12 Months Ended |
Dec. 31, 2014 | |
BANK BORROWINGS [Abstract] | |
BANK BORROWINGS | 7. BANK BORROWINGS At December 31, 2013 2014 $ $ Short-term bank borrowings 304,827,038 356,793,246 Current portion of long-term borrowings 35,427,888 20,412,210 Long-term bank borrowings 265,975,939 272,348,001 Total 606,230,865 649,553,457 The Group's short-term bank borrowings had annual average fixed interest rates of 7.01 6.88 The Group's long-term bank borrowings had annual average fixed interest rates of 4.74 4.20 The short-term bank borrowings (in millions) were guaranteed by: At December 31, 2013 2014 $ $ Fixed deposit 211.1 209.0 China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu 16.4 16.3 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 26.1 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 machinery from China Sunergy (Nanjing) Co., Ltd. 16.1 8.1 CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu 8.2 13.1 Construction in progress 4.9 3.6 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 1.0 Shareholder of subsidiaries in Turkey 0.5 3.0 China Electric Equipment Group Co., Ltd. and Jiangsu Xinde Asset Management Co., Ltd. and CEEG(Zhengjiang) Power Transformer and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 8.2 Jiangsu Xinde Asset Management Co., Ltd and CEEG (zhenjiang) Power Transformer Co., Ltdand Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 8.2 Fixed deposit pledge and shareholder of subsidiaries in Turkey - 0.7 Fixed deposit pledge and China Electric Equipment Group Co., Ltd. - 10.0 Construction in Progress & Fix assets and China Electric Equipment Group Co., Ltd, CEEG (Nanjing) Special Transformer Co., Ltd and Group Chairman Mr. Tingxiu Lu - 1.6 CEEG (Jiangsu) Limited and CEEG Special Transformer Co., Ltd and new energy and Land use right and plant - 32.7 Total 303.2 341.6 The Group's long-term bank borrowings (in millions) were guaranteed by: At December 31, 2013 2014 $ $ Group Chairman Mr. Tingxiu Lu and his stock rights in Jiangsu Xinde Asset Management Co., Ltd. 100.0 - Land use right and machinery 42.5 38.2 Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. 50.0 50.0 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 30.6 Fixed deposit 26.8 51.2 Construction in progress 11.1 - China Electric Equipment Group Co., Ltd. and machinery 7.5 13.0 China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 100.0 Construction in Progress & Property, plant and equipment - 9.8 Total 301.3 292.8 The Group has short-term credit facilities of $ 292.0 215.9 76.2 The Group has a seven 158.4 20.1 The Group has a four 50.0 The Group has a six 20.1 6.7 The Group has three 41.0 5.0 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2014 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | 8. FAIR VALUE MEASUREMENT Recurring change in fair value There were no assets or liabilities that were measured at fair value on a recurring basis as of December 31, 2014. 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 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. 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, 2014, 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 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, 2013 and 2014, 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, 2014 | |
CONVERTIBLE SENIOR NOTES [Abstract] | |
CONVERTIBLE SENIOR NOTES | 9. CONVERTIBLE SENIOR NOTES On July 1, 2008, the Company issued $ 54.5 4.5 4.75 Conversion Each $ 1,000 27.10 18 0.0001 36.9 1,000 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 30.75 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 Issuance costs for the Convertible Notes amounted to $ 4.3 0.7 0.01 Share Lending Agreement Concurrent with this offering, 1,477,000 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 100 100 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 - A nominal lending fee of $ 0.0018 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. 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, 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 and 2013. The total issuance costs associated with the share-lending arrangement was $ 1.9 0.3 0.01 In 2012, the Group conducted open market repurchases of its Convertible Notes, and repurchased $ 26.0 15.7 10.3 1.5 |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2014 | |
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 $ 6.2 5.9 5.1 |
PROFIT APPROPRIATION
PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2014 | |
PROFIT APPROPRIATION [Abstract] | |
PROFIT APPROPRIATION | 11. PROFIT APPROPRIATION Pursuant to laws applicable to entities incorporated in the PRC, PRC subsidiaries such as Sunergy Nanjing, SST, NRE, China Sunergy (Yangzhou) Co., Ltd and Lianyungang Yuanhui Solar Power Co., Ltd are prohibited from distributing their statutory capital and should 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 49.4 7.9 1,737.6 284.1 |
OTHER (EXPENSE) INCOME, NET
OTHER (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2014 | |
OTHER (EXPENSE) INCOME, NET [Abstract] | |
OTHER (EXPENSE) INCOME, NET | 12. OTHER (EXPENSE) INCOME, NET Years ended December 31, 2012 2013 2014 $ $ $ Foreign currency exchange gain (loss), net 397,621 (826 ) (12,721,957 ) Convertible notes repurchase gain 10,348,750 - - Government grants 889,239 1,921,965 948,641 Gain on disposal of subsidiaries (Note (a)) - 2,196,198 9,150,952 Compensation in relation to dispute settlement (Note (b)) - 1,790,214 - Forgiveness of interests owed to a related party - 2,436,882 - Others (148,672 ) 630,354 17,054 Total 11,486,938 8,974,787 (2,605,310 ) 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 the photovoltaic project's engineering and sales, and were on their pre-operating stage. During the year of 2013, 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 The amount of the consideration for disposal of Jinchang New Sunshine was $ 1.9 1.6 0.4 1.5 4.3 2.7 3.6 0.7 The disposal 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. The gain on disposal of subsidiary for the year ended December 31, 2014 arose from disposal of the Company's wholly owned subsidiary, China Sunergy (Shanghai) Co., Ltd. (Sunergy Shanghai). Sunergy Shanghai was mainly engaged in Solar cells manufacturing, and was not in operation due to the over-capacity of the Solar cells manufacturing according to the best market estimation from the management. During the current year, the Company entered into a sale agreement with China Electric Equipment Group Co., Ltd. to dispose of its 100 The amount of the consideration for disposal of Sunergy Shanghai was $ 37.6 24.6 13.0 6.8 28.4 9.2 The disposal did not constitute discontinued operation as the Company disposed Sunergy Shanghai to a related party and the Company intends to have continuation of activities with Sunergy Shanghai, such as significant business and in and out cash-flows, 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, 2014 | |
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("BVI") 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 16.5 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 2012, 2013 and 2014. 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 entitled to two 50 15 three 12.5 Sunergy Shanghai was established in November 2007 and its applicable EIT rate is 25 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 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 separately, 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, 2013 and 2014 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 100,000 ten The PRC is the primary tax jurisdiction in which the Company operates. As of December 31, 2014, the Company's PRC subsidiaries remain subject to tax examination by the PRC tax authorities for the tax years 2012 through 2014 on non-transfer pricing matters, and the tax years 2005 to 2014 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 The provision for income taxes by tax jurisdictions for the years ended December 31, 2012, 2013 and 2014 is as follows: Years ended December 31, 2012 2013 2014 $ $ $ Loss from operations before income tax: PRC (107,662,760 ) (42,999,102 ) (49,984,053 ) Other jurisdictions (9,635,640 ) (7,482,743 ) (5,896,782 ) Total loss before income tax (117,298,400 ) (50,481,845 ) (55,880,835 ) Years ended December 31, 2012 2013 2014 $ $ $ Current income tax expense: PRC - (1,981,113 ) - Other jurisdictions (339,223 ) (1,881,831 ) (554,966 ) (339,223 ) (3,862,944 ) (554,966 ) Deferred income tax benefit (expense) PRC (17,231,276 ) 1,481,687 1,326,512 Other jurisdictions 1,275,278 1,253,630 (1,385,831 ) (15,955,998 ) 2,735,317 (59,319 ) Total income tax benefit (expense) (16,295,221 ) (1,127,627 ) (614,285 ) A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31, 2012 2013 2014 PRC statutory enterprise income tax rate 25.0 % 25.0 % 25.0 % Different tax rates in other jurisdictions (0.5 %) (3.3 %) 1.5 % Other non-deductible expense for tax purposes (0.2 %) (5.3 %) 0.1 % Effect of tax holiday (5.2 %) (5.5 %) (7.6 )% Effect of future tax rate change 7.8 % 8.3 % - 50 0.7 % 1.2 % 0.2 % Change in valuation allowance (41.1 %) (23.5 %) (21.5 %) Others (0.4 %) 0.9 % 1.2 % (13.9 %) (2.2 %) (1.1 )% Years ended December 31, 2012 2013 2014 Gross tax exemption $ 6,041,242 $ 2,756,938 $ 4,244,345 Tax holiday per share-basic $ 0.03 $ 0.01 $ 0.02 Tax holiday per share-diluted $ 0.03 $ 0.01 $ 0.02 The principal components of the deferred tax assets are as follows: At December 31, 2013 2014 $ $ Deferred tax assets: Depreciation of property, plant and equipment 2,188,731 1,618,387 Warranty costs 5,058,369 4,144,552 Inventory write-down 517,001 408,683 Allowance for doubtful account 14,608,597 12,882,718 Net operating loss carry forwards 51,570,404 51,404,673 Fixed assets impairment 175,045 17,397 Others 49,603 116,905 Gross total deferred tax assets 74,167,750 70,593,315 Valuation allowances (64,754,872 ) (61,025,933 ) Net deferred tax assets 9,412,878 9,567,382 Analysis as: Current 1,922,242 2,075,802 Non-current 7,490,636 7,491,580 Total deferred tax assets 9,412,878 9,567,382 At December 31, 2013 2014 $ $ Deferred tax liabilities: Intangible assets (451,042 ) (262,926 ) Total deferred tax liabilities (451,042 ) (262,926 ) Analysis as: Current (6,133 ) - Non-current (444,909 ) (262,926 ) Total deferred tax liabilities (451,042 ) (262,926 ) The net operating loss carry forwards of the Group's PRC subsidiaries are approximately $ 246.4 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 allowances are not more likely than not to be realized. Therefore, a $ 61.0 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, 2014, the Company's PRC subsidiaries have an accumulated deficit of $ 327.6 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2014 | |
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 2,050,900 four 10 On January 10, 2008, under the Share Incentive Plan, the Company further granted options to purchase 716,226 1.283 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 2,397,301 1,078,785 three On January 9, 2009, the Group granted options to purchase 260,002 80,640 1.283 0.7 ten 100,002 0.7 5 In 2012, 2013 and 2014, the Group did not grant any additional options to employees. The Group recorded $ 217 nil nil 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 0.22 2009 Average risk-free rate of return 1.51 2.40 % Expected term 6 10 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, 2014 297,120 $ 1.087 2.65 $ - Forfeited (94,810 ) $ 1.283 1.33 $ - Outstanding at December 31, 2014 (all vested and exercisable) 202,310 $ 0.995 1.33 $ - As of December 31, 2014, 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, 2014 | |
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 15. RELATED PARTY TRANSACTIONS AND BALANCES Related party balances Amounts due from related parties: Years ended December 31, 2013 2014 $ $ Trade related balances 78,319,560 75,713,936 Non-trade related balances 5,667,293 12,333,542 Amounts due from related parties 83,986,853 88,047,478 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 2013 2014 $ $ CEEG (Nanjing) Semiconductor Co., Ltd. 74,922,671 70,186,196 China Electric Equipment Group Co., Ltd. 1,833,709 4,054,056 CEEG (Nanjing) Solar Research Institute 1,527,431 597,774 CEEG (Jiangsu) Insulated New Material Co., Ltd. 35,749 4,620 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 44,942 Nanjing Xinde New Energy Technology Co., Ltd. - 583,390 CEEG Holding Co.,Ltd. - 148,768 Jiangsu CEEG Business Co., Ltd. - 94,190 78,319,560 75,713,936 As of December 31, 2013 and 2014, the trade related balance was $ 78,319,560 75,713,936 74,922,671 70,186,196 75 one 70 one As of December 31, 2013, the non-trade related balance was $ 5,667,293 3,963,883 As of December 31, 2014, the non-trade related balance was $ 12,333,542 6,180,174 3,958,029 Amounts due to related parties: At December 31, 2013 2014 $ $ Trade related balances 6,609,510 4,424,706 Non-trade related balances 5,188,009 4,696,075 Amounts due to related parties 11,797,519 9,120,781 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 2013 2014 $ $ Jiangxi Jingde Semiconductor New Material Co., Ltd. 3,181,214 111,013 China Electric Equipment Group Co., Ltd. 454,759 522,763 CEEG (Nanjing) Intelligent Technology Co., Ltd. 190,067 172,852 CEEG (Jiangsu) Insulated New Material Co., Ltd. 1,701,026 1,442,674 CEEG (Nanjing) Semiconductor Co., Ltd. 1,082,444 140,865 CEEG (Nanjing) Solar Research Institute - 1,923,774 CEEG (HK) Limited Co., Ltd. - 47,029 Jiangsu Xinde Minyong Photovoltaic System Co., Ltd. - 63,736 6,609,510 4,424,706 As of December 31, 2013, the non-trade related balances were $5.2 million, of which $ 4.1 As of December 31, 2014, the non-trade related balances were $4.7 million, of which $ 3.6 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, 2012 2013 2014 $ $ $ CEEG (Nanjing) Solar Research Institute 4,997,073 1,450,689 333,943 CEEG (Nanjing) Semiconductor Co., Ltd. - 247,563 9,736 China Electric Equipment Group (Hong Kong) Co., Ltd. 245,341 71,852 - China Electric Equipment Group Co., Lt 51,216 7,435,809 5,333,313 CEEG (Jiangsu) Insulated New Material Co., Ltd. 537,278 606,322 - CEEG Korea Co., Ltd. 1,393 - 4,065 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 38,893 95,555 Jiangsu Xinde Civil Photovoltaic System Co., Ltd. - - 715,691 Jiangsu CEEG Cloud Commercial Co., Ltd. - - 328,053 Nanjing Xinde New Energy Technology Co., Ltd. - - 1,501,211 CEEG Holding Co., Ltd. - - 1,738,797 CEEG Xinde (Shanghai)New Energy Co., Ltd. - - 8,190 5,832,301 9,851,128 10,068,554 Purchase of raw materials from related parties with common ultimate investors are as follows: Name of related party Years ended December 31, 2012 2013 2014 $ $ $ China Electric Equipment Group Co., Ltd. - 4,778,993 379,275 CEEG (Nanjing) Semiconductor Co., Ltd. 32,011,217 21,449,705 40,296 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 4,811,590 - CEEG (Jiangsu) Insulated New Material Co., Ltd. 3,852,558 6,181,715 3,668,758 CEEG (Nanjing) Special Transformer Co., Ltd. - 181 - 35,863,775 37,222,184 4,088,329 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 2.1 0.02 Short-term borrowings from CEEG Semi, with common ultimate investors, are as follows: Years ended December 31, 2012 2013 2014 $ $ $ 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 $ 116.9 107.4 28.7 In 2013, CEEG Semi forgave the interests of these borrowings and the accrued interests amounted to $ 2.4 In 2013, the Group lent CEEG Semi an interest-free loan amounting to $ 44.3 In 2014, the Group had no short-term borrowings from CEEG Semi. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
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 $ 1,274,139 1,677,533 1,626,155 Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2014 were as follows: Twelve-month period ending December 31, 2015 $ 1,746,724 2016 $ 105,491 2017 $ 57,945 2018 $ 29,417 2019 $ 29,417 Over 5 years $ 31,868 $ 2,000,862 b) Purchase commitments At December 31, 2012 2013 2014 $ $ $ Commitments to purchase property, plant and equipment (1) 20,415,660 13,356,755 8,028,764 Commitments to purchase silicon raw materials (2) 899,304,092 845,131,131 464,634,744 919,719,752 858,487,886 472,663,508 (1) Future payment required for purchase of property, plant and equipment are as follows: Twelve-month period ending December 31, 2015 $ 8,011,239 2016 $ 17,525 Total $ 8,028,764 (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 four Based on the prevailing market as of December 31, 2014, future payments required under these long-term supply agreements are as follows: Twelve-month period ending December 31, 2015 $ 232,317,372 2016 $ 232,317,372 Total $ 464,634,744 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2014 | |
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, 2012 2013 2014 $ $ $ Europe: - Germany 65,979,111 43,997,078 15,732,066 - Italy 45,429,510 7,747,266 856,757 - Spain 656,723 1,558,828 81,246 - Belgium 1,953,916 1,319,670 244,416 - France 19,758,758 48,504,587 69,270,852 - Czech Republic and Slovakia 5,699,269 1,806,237 645,756 - Bulgaria 22,300,958 1,886,258 60,928 - United Kingdom 11,844,591 6,055,612 7,115,464 - Others 34,582,052 36,316,562 10,791,911 Europe total 208,204,888 149,192,098 104,799,396 PRC 29,148,928 97,038,992 137,148,042 India 867,177 26,943,051 20,328,345 South Korea 14,244 - 8,751 Australia 39,605,278 7,783,075 8,400,530 America 1,932,147 1,837,797 2,400,047 Japan - 31,313,082 57,774,158 Others 12,948,699 2,077,599 10,248,428 Total net revenues 292,721,361 316,185,694 341,107,697 Substantially all the identifiable assets of the Group are located in the PRC. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS On January 23, 2015, the Group has signed an assets transfer agreement with a third party power company, under which the Group agreed to sell and the third party company agreed to purchase all the project assets (see note 2h), for a total consideration of approximately $ 8.0 9.8 1.6 7.2 |
SCHEDULE I
SCHEDULE I | 12 Months Ended |
Dec. 31, 2014 | |
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, 2013 2014 $ $ ASSETS Current assets: Cash 401,680 115,557 Amount due from subsidiaries 79,100,696 79,521,658 Other receivables 221,884 68,235 Total current assets 79,724,260 79,705,450 Investments in subsidiaries (123,416,770 ) (179,395,255 ) Property, Plant and Equipment, net 3,511 2,698 Total assets (43,688,999 ) (99,687,107 ) Liabilities and equity: Liabilities: Other liabilities 42,799 302,809 Total current liabilities 42,799 302,809 Total liabilities 42,799 302,809 Equity (deficit): Ordinary shares (par value $ 0.0001 463,247,600 267,287,253 24,070 24,070 Additional paid-in capital 185,367,042 185,367,042 Treasury shares (at par value of $0.0001) 2,659 2,659 Accumulated deficit (265,196,150 ) (321,691,379 ) Accumulated other comprehensive income 36,070,581 36,307,692 Total (deficit) (43,731,798 ) (99,989,916 ) TOTAL LIABILITIES AND (DEFICIT) (43,688,999 ) (99,687,107 ) CHINA SUNERGY CO., LTD. STATEMENT OF OPERATIONS (In U.S. dollars) Year ended December 31, 2012 2013 2014 $ $ $ General and administrative expenses (1,982,550 ) (1,367,729 ) (1,659,482 ) Total operating expenses (1,982,550 ) (1,367,729 ) (1,659,482 ) Loss from operations (1,982,550 ) (1,367,729 ) (1,659,482 ) Interest expense (1,426,848 ) (67,583 ) (8,743 ) Interest income 929,636 1,568,461 1,272,607 Equity in losses of subsidiaries (141,703,447 ) (50,695,469 ) (56,215,596 ) Other income (expense), net 10,602,545 (46,761 ) 115,985 Net loss (133,580,664 ) (50,609,081 ) (56,495,229 ) CHINA SUNERGY CO., LTD. STATEMENT OF COMPREHENSIVE INCOME (LOSS) (In U.S. dollars) Years ended December 31, 2012 2013 2014 $ $ $ Net loss (133,580,664 ) (50,609,081 ) (56,495,229 ) Other comprehensive income: Foreign currency translation adjustments, net of tax impact of nil for 2012, 2013and 2014 824,123 547,193 237,111 Comprehensive loss (132,756,541 ) (50,061,888 ) (56,258,118 ) CHINA SUNERGY CO., LTD. STATEMENT OF CASH FLOWS (In U.S. dollars) Year ended December 31, 2012 2013 2014 $ $ $ Operating activities: Net loss attributable to China Sunergy Co., Ltd. (133,580,664 ) (50,609,081 ) (56,495,229 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity in gains/losses of subsidiaries 141,703,447 50,695,469 56,215,596 Share-based compensation 217 - - Gain on repurchase of convertible senior notes (10,348,750 ) - - Amortization of convertible senior notes 964,750 15,934 - Others (256,363 ) - 813 Changes in operating assets and liabilities: Other receivables (52,466 ) (61,798 ) 153,649 Other liabilities (11,832 ) (752,627 ) 260,010 Amounts due from subsidiaries 15,517,779 2,318,743 (420,962 ) Net cash provided by (used in) operating activities 13,936,118 1,606,640 (286,123 ) Investing activity: Purchase of PPE - (3,511 ) - Net cash (used in) investing activity - (3,511 ) - Financing activities: Payment of convertible senior notes repurchase (15,651,250 ) (1,500,000 ) - Net cash used in financial activities (15,651,250 ) (1,500,000 ) - Net increase (decrease) in cash and cash equivalents (1,715,132 ) 103,129 (286,123 ) Cash and cash equivalents at the beginning of the year 2,013,683 298,551 401,680 Cash and cash equivalents at the end of the year 298,551 401,680 115,557 Supplemental disclosure of non-cash investing activities: Restricted cash collateral received in connection with Share Lending Agreement 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, 2014, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statement, if any. |
SUMMARY OF PRINCIPAL ACCOUNTI27
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Basis of presentation | (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 0.59 0.63 For the year ended December 31, 2014, the Group incurred an operating loss of $ 31.0 37.2 During the year ended December 31, 2014, the Group experienced negative cash flow of $ 62.5 As of December 31, 2014, the Group's current liabilities exceed its current assets by $ 53.3 42.1 179.4 356.8 20.4 These factors are mitigated by the following plans and actions: The Group has entered into a written agreement with five commercial banks who agreed to continue providing financial support to the Group, including extensions and renewals of existing loans, representing 76% of the total outstanding loans from these banks as of December 31, 2014. 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, 2015 to March 31, 2015, the Group renewed short-term bank borrowings of $ 88.2 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 us to stay closer to the European market than certain of our competitors which only conduct manufacturing operations in China, capture business opportunities in emerging solar power markets such as 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. In fourth quarter of 2014, the Group established a plant to manufacture solar products in South Korea. The Group believes this will increase its overseas production capacities which enable us to expand to the East Asia market. 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, inventory valuation, allowance on accounts receivable and supplier advances, provision of warranty costs, 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 the 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, 2013 2014 $ $ Project assets Module cost 2,816,687 2,227,804 Project assets Development 7,338,088 5,994,123 Total 10,154,775 8,221,927 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 were nil 1,608,505 |
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 Machinery 10 Furniture, fixtures and equipment 5 Motor vehicles 5 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 $ 3,180,454 3,816,232 4,425,863 |
Prepaid land use rights | (j) Prepaid land use rights Prepaid land use rights are recorded at cost and are amortized ratably over 50 |
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 |
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. |
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, 2012, 2013 and 2014. |
Income taxes | (n) 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, 2012, 2013 and 2014, 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 | (o) 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 45 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 | (p) Buy-and-sell arrangements 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 were all to maintain the quantity and quality of the Group's solar cell supply, which were 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. In 2014, the Group entered into arrangements wherein the Group purchases accessorial raw material 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, 2012 2013 2014 $ $ $ Sell: Solar wafer 7,459,649 155,869 1,586,980 Solar cell - - 1,976,141 Solar module 1,148,789 1,790,579 14,297,671 Purchase: Raw material - 2,704,839 3,292,306 Solar cell 26,887,923 382,716 11,971,938 |
Cost of revenue | (q) Cost of revenue Cost of revenue includes production and indirect costs, as well as warranty costs. |
Research and development | (r) Research and development Research and development ("R&D") costs are expensed when incurred. |
Advertising expenses | (s) Advertising expenses Advertising costs are expensed as incurred. The Group incurred advertising costs amounting to $ 2,665,486 938,330 783,942 |
Shipping and handling cost | (t) 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 $ 3,747,564 4,890,611 4,781,150 |
Warranty cost | (u) Warranty cost Solar modules are typically sold with up to 25 five ten 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 0.1 0.26 The movement of the Group's accrued warranty costs is summarized below: Years ended December 31, 2012 2013 2014 $ $ $ Beginning balance 14,763,321 17,163,711 20,129,274 Addition 2,760,248 3,366,686 2,785,113 Claimed (359,858 ) (401,123 ) (496,552 ) Ending balance 17,163,711 20,129,274 22,417,835 |
Government grants | (v) 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 2014, the Company received government grants of $ 4.7 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 2014, approximately $ 0.95 0.2 |
Foreign currency translation | (w) 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 | (x) 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 | (y) 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 $ 209,116,209 164,193,726 |
Concentration of credit risk | (z) 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, 2012 2013 2014 $ $ $ Opening balance (15,869,894 ) (63,006,093 ) (64,940,205 ) Addition (47,400,809 ) (10,337,119 ) - Reversal - 9,836,790 4,799,411 Write-off 361,049 - - Effect of exchange rate change in foreign currency (96,439 ) (1,433,783 ) 1,091,047 Ending balance (63,006,093 ) (64,940,205 ) (59,049,747 ) The reversal of $4.8 million was due to the collection of accounts receivable for which bad debt provision was recorded prior to 2014. 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, 2012, 2013 or 2014. Accounts receivable from customers accounting for 10% or more of total gross accounts receivable are as follows: Name of Customer At December 31, 2013 2014 Company A 22 % 21 % Company B 11 % * * Less than 10% |
Net loss per share | (aa) 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, 2012, 2013 and 2014, 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, 2012 2013 2014 $ $ $ Outstanding options and restricted shares 344,190 297,120 202,310 Assumed conversion of convertible senior notes 4,811,408 - - Total 5,155,598 297,120 202,310 The following table sets forth the computation of basic and diluted income per share for the periods indicated: Years ended December 31, 2012 2013 2014 Net loss attributable to ordinary shareholders- for the calculation of basic loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Weightedaverage ordinary shares outstanding- for the calculation of basic loss per share 240,701,253 255,102,003 267,287,253 Weightedaverage ordinary shares outstanding- for the calculation of diluted loss per share 240,701,253 255,102,003 267,287,253 Net loss per share: Basic $ (0.55 ) $ (0.20 ) $ (0.21 ) Diluted $ (0.55 ) $ (0.20 ) $ (0.21 ) |
Share-based compensation | (bb) 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 | (cc) Recently issued accounting pronouncements In January 2015, the FASB issued guidance on simplifying the income statement presentation by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. This amendment is effective for annual periods beginning after December 15, 2015. The adoption of this standard is not expected to have a material impact on our consolidated financial position or results of operations. In August 2014, the FASB issued guidance on the presentation of financial statements when there is substantial doubt about an entity's ability to continue as a going concern. The amendment requires that an entity's management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about an entity's ability to continue as a going concern, additional disclosure is required to enable users of the financial statements to understand the conditions or events, management's evaluation of the significance of those conditions and management's plans that are intended to alleviate or management's plans that have alleviated substantial doubt. The amendment is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's consolidated financial position or results of operations In June 2014, the FASB issued guidance on stock compensation. The amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendment is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Earlier adoption is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's consolidated financial position or results of operations. In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on the Company's consolidated financial statements, if any, including which transition method it will adopt. |
ORGANIZATION AND PRINCIPAL AC28
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
Schedule of Subsidiaries | Date of Incorporation Percentage of Subsidiaries' Name Principal Activities or acquisition Ownership Place of Incorporation China Sunergy Co., Ltd. ("China Sunergy BVI") Investment Holding January 27, 2006 100 % British Virgin Islands China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") Investment Holding December 7, 2007 100 % Hong Kong China Sunergy Europe Gmbh Marketing Service November 27, 2007 100 % Germany China Sunergy (Nanjing) Co., Ltd. ("Sunergy Nanjing") Solar cells manufacturing August 2, 2004 100 % PRC CEEG (Shanghai) Solar Science Technology Co., Ltd. ("SST") Modules manufacturing November 1, 2010 100 % PRC CEEG (Nanjing) Renewable Energy Co., Ltd ("NRE") Modules manufacturing November 1, 2010 100 % PRC China Sunergy (US) Clean Tech Inc Sales & Marketing service April 8, 2011 100 % US CSUN Trading (Hong Kong) Co., Limited Trading May 4, 2011 100 % Hong Kong China Sunergy (Yangzhou) Co., Ltd. Solar cell Manufacturing and Research& Development (R&D) June 30, 2011 100 % PRC China Sunergy Luxembourg S.A Photovoltaic project's Engineering & sales August 5, 2011 100 % Luxembourg CSUN International (Hong Kong) Co., Ltd Investment Holding March 22, 2012 100 % Hong Kong CSUN Holding (Luxembourg) s.a.r.l Investment Holding April 26, 2012 100 % Luxembourg CSUN Renewable Energy (France) S.A.R.L Marketing service May 29, 2012 100 % France CSUN Holding UK LTD Photovoltaic project's Engineering & sales July 17, 2012 100 % UK CSUN Italy S.R.L Marketing service August 29, 2012 100 % Italy AEE Renewable UK 6 Photovoltaic Project October 30, 2012 100 % UK AEE Renewable UK 7 Photovoltaic Project October 30, 2012 100 % UK CSUN Eurasia Energy Systems Industry and Trade Inc. Modules manufacturing November 12, 2012 80 % Turkey CSUN Eurasia Energy Technologies Industry and Trade Inc. Solar cells manufacturing November 12, 2012 80 % Turkey Lianyungang Yuanhui Solar Power Photovoltaic project's Engineering and sales July 15, 2013 100 % PRC China Sunergy ( Nanjing ) Solar Energy Co., Ltd. Solar cell, modules Manufacturing ,R&D and sales April 30, 2014 100 % PRC China Sunergy (Nanjing) Power Science & Technology Co., Ltd. Solar cell, modules Manufacturing ,R&D and sales April 30, 2014 100 % PRC Juancheng Xingze Solar Electric Power Co., Ltd. Photovoltaic project's Engineering and sales March 21, 2014 100 % PRC CSUN Energy Solutions Australia Pty Ltd. Photovoltaic project's Engineering and sales April 30, 2014 100 % Australia CSUN Australia Pty. Ltd. Sales & Marketing service March 19, 2014 100 % Australia CSUN (Japan) Solar Energy Co., Ltd. Trading Solar cell, modules March 20, 2014 70 % Japan CSUN Energy Investment Inc. Manufacturing & sales Photovoltaic project's March 10, 2014 80 % Turkey Korea Sunergy Co., Ltd. Engineering and sales Solar cells manufacturing December 23, 2014 50 % South Korea |
SUMMARY OF PRINCIPAL ACCOUNTI29
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Schedule of Project Assets | At December 31, 2013 2014 $ $ Project assets Module cost 2,816,687 2,227,804 Project assets Development 7,338,088 5,994,123 Total 10,154,775 8,221,927 |
Schedule of Property, Plant, and Equipment Estimated Useful Lives | Buildings 20 Machinery 10 Furniture, fixtures and equipment 5 Motor vehicles 5 Leasehold improvements over the shorter of the lease term or their estimated useful lives |
Schedule of Purchase and Selling Transactions | Years ended December 31, 2012 2013 2014 $ $ $ Sell: Solar wafer 7,459,649 155,869 1,586,980 Solar cell - - 1,976,141 Solar module 1,148,789 1,790,579 14,297,671 Purchase: Raw material - 2,704,839 3,292,306 Solar cell 26,887,923 382,716 11,971,938 |
Schedule of Warranty Costs | Years ended December 31, 2012 2013 2014 $ $ $ Beginning balance 14,763,321 17,163,711 20,129,274 Addition 2,760,248 3,366,686 2,785,113 Claimed (359,858 ) (401,123 ) (496,552 ) Ending balance 17,163,711 20,129,274 22,417,835 |
Reconciliation of Allowance for Doubtful Accounts | Years ended December 31, 2012 2013 2014 $ $ $ Opening balance (15,869,894 ) (63,006,093 ) (64,940,205 ) Addition (47,400,809 ) (10,337,119 ) - Reversal - 9,836,790 4,799,411 Write-off 361,049 - - Effect of exchange rate change in foreign currency (96,439 ) (1,433,783 ) 1,091,047 Ending balance (63,006,093 ) (64,940,205 ) (59,049,747 ) |
Accounts Receivable from Customers Accounting for 10% Percent or More | Name of Customer At December 31, 2013 2014 Company A 22 % 21 % Company B 11 % * * Less than 10% |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (Loss) Per Share | Years ended December 31, 2012 2013 2014 $ $ $ Outstanding options and restricted shares 344,190 297,120 202,310 Assumed conversion of convertible senior notes 4,811,408 - - Total 5,155,598 297,120 202,310 |
Schedule of Computation of Basic and Diluted Income Per Share | Years ended December 31, 2012 2013 2014 Net loss attributable to ordinary shareholders- for the calculation of basic loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Net loss attributable to ordinary shareholders- for the calculation of diluted loss per share $ (133,580,664 ) $ (50,609,081 ) $ (56,096,366 ) Weightedaverage ordinary shares outstanding- for the calculation of basic loss per share 240,701,253 255,102,003 267,287,253 Weightedaverage ordinary shares outstanding- for the calculation of diluted loss per share 240,701,253 255,102,003 267,287,253 Net loss per share: Basic $ (0.55 ) $ (0.20 ) $ (0.21 ) Diluted $ (0.55 ) $ (0.20 ) $ (0.21 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
INVENTORIES [Abstract] | |
Schedule of Inventory | At December 31, 2013 2014 $ $ Raw materials 11,170,602 26,697,632 Work-in-process 12,528,549 990,073 Finished goods 20,958,503 25,195,519 Inventories 44,657,654 52,883,224 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Schedule Of Property, Plant And Equipment | At December 31, 2013 2014 $ $ Buildings 62,472,729 63,695,930 Plant and machinery 144,361,757 158,824,781 Furniture, fixtures and equipment 14,117,389 14,733,578 Motor vehicles 1,665,289 1,616,276 222,617,164 238,870,565 Less: Accumulated depreciation (88,912,568 ) (107,510,326 ) 133,704,596 131,360,239 Construction in process 89,919,590 95,439,441 Property, plant and equipment, net 223,624,186 226,799,680 |
PREPAID LAND USE RIGHTS (Tables
PREPAID LAND USE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
PREPAID LAND USE RIGHTS [Abstract] | |
Schedule of Land Use Rights, Net | At December 31, 2013 2014 $ $ Prepaid land use rights, cost 30,086,477 25,627,478 Less: Accumulated amortization (2,201,737 ) (2,252,352 ) Prepaid land use rights, net 27,884,740 23,375,126 |
BANK BORROWINGS (Tables)
BANK BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
BANK BORROWINGS [Abstract] | |
Schedule of Bank Borrowings | At December 31, 2013 2014 $ $ Short-term bank borrowings 304,827,038 356,793,246 Current portion of long-term borrowings 35,427,888 20,412,210 Long-term bank borrowings 265,975,939 272,348,001 Total 606,230,865 649,553,457 |
Schedule of Short-Term Bank Borrowings | At December 31, 2013 2014 $ $ Fixed deposit 211.1 209.0 China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu 16.4 16.3 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 26.1 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 machinery from China Sunergy (Nanjing) Co., Ltd. 16.1 8.1 CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu 8.2 13.1 Construction in progress 4.9 3.6 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 1.0 Shareholder of subsidiaries in Turkey 0.5 3.0 China Electric Equipment Group Co., Ltd. and Jiangsu Xinde Asset Management Co., Ltd. and CEEG(Zhengjiang) Power Transformer and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 8.2 Jiangsu Xinde Asset Management Co., Ltd and CEEG (zhenjiang) Power Transformer Co., Ltdand Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 8.2 Fixed deposit pledge and shareholder of subsidiaries in Turkey - 0.7 Fixed deposit pledge and China Electric Equipment Group Co., Ltd. - 10.0 Construction in Progress & Fix assets and China Electric Equipment Group Co., Ltd, CEEG (Nanjing) Special Transformer Co., Ltd and Group Chairman Mr. Tingxiu Lu - 1.6 CEEG (Jiangsu) Limited and CEEG Special Transformer Co., Ltd and new energy and Land use right and plant - 32.7 Total 303.2 341.6 |
Schedule of Long-Term Bank Borrowings | At December 31, 2013 2014 $ $ Group Chairman Mr. Tingxiu Lu and his stock rights in Jiangsu Xinde Asset Management Co., Ltd. 100.0 - Land use right and machinery 42.5 38.2 Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd. 50.0 50.0 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 30.6 Fixed deposit 26.8 51.2 Construction in progress 11.1 - China Electric Equipment Group Co., Ltd. and machinery 7.5 13.0 China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi - 100.0 Construction in Progress & Property, plant and equipment - 9.8 Total 301.3 292.8 |
OTHER (EXPENSE) INCOME, NET (Ta
OTHER (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
OTHER (EXPENSE) INCOME, NET [Abstract] | |
Schedule of Other (Expense) Income | Years ended December 31, 2012 2013 2014 $ $ $ Foreign currency exchange gain (loss), net 397,621 (826 ) (12,721,957 ) Convertible notes repurchase gain 10,348,750 - - Government grants 889,239 1,921,965 948,641 Gain on disposal of subsidiaries (Note (a)) - 2,196,198 9,150,952 Compensation in relation to dispute settlement (Note (b)) - 1,790,214 - Forgiveness of interests owed to a related party - 2,436,882 - Others (148,672 ) 630,354 17,054 Total 11,486,938 8,974,787 (2,605,310 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
INCOME TAXES [Abstract] | |
Schedule of Income Taxes by Tax Jurisdictions | Years ended December 31, 2012 2013 2014 $ $ $ Loss from operations before income tax: PRC (107,662,760 ) (42,999,102 ) (49,984,053 ) Other jurisdictions (9,635,640 ) (7,482,743 ) (5,896,782 ) Total loss before income tax (117,298,400 ) (50,481,845 ) (55,880,835 ) |
Schedule of Income Tax Expense (Benefit) | Years ended December 31, 2012 2013 2014 $ $ $ Current income tax expense: PRC - (1,981,113 ) - Other jurisdictions (339,223 ) (1,881,831 ) (554,966 ) (339,223 ) (3,862,944 ) (554,966 ) Deferred income tax benefit (expense) PRC (17,231,276 ) 1,481,687 1,326,512 Other jurisdictions 1,275,278 1,253,630 (1,385,831 ) (15,955,998 ) 2,735,317 (59,319 ) Total income tax benefit (expense) (16,295,221 ) (1,127,627 ) (614,285 ) |
Schedule of Effective Income Tax Rate Reconciliation | Years ended December 31, 2012 2013 2014 PRC statutory enterprise income tax rate 25.0 % 25.0 % 25.0 % Different tax rates in other jurisdictions (0.5 %) (3.3 %) 1.5 % Other non-deductible expense for tax purposes (0.2 %) (5.3 %) 0.1 % Effect of tax holiday (5.2 %) (5.5 %) (7.6 )% Effect of future tax rate change 7.8 % 8.3 % - 50 0.7 % 1.2 % 0.2 % Change in valuation allowance (41.1 %) (23.5 %) (21.5 %) Others (0.4 %) 0.9 % 1.2 % (13.9 %) (2.2 %) (1.1 )% Years ended December 31, 2012 2013 2014 Gross tax exemption $ 6,041,242 $ 2,756,938 $ 4,244,345 Tax holiday per share-basic $ 0.03 $ 0.01 $ 0.02 Tax holiday per share-diluted $ 0.03 $ 0.01 $ 0.02 |
Schedule of Deferred Tax Assets | At December 31, 2013 2014 $ $ Deferred tax assets: Depreciation of property, plant and equipment 2,188,731 1,618,387 Warranty costs 5,058,369 4,144,552 Inventory write-down 517,001 408,683 Allowance for doubtful account 14,608,597 12,882,718 Net operating loss carry forwards 51,570,404 51,404,673 Fixed assets impairment 175,045 17,397 Others 49,603 116,905 Gross total deferred tax assets 74,167,750 70,593,315 Valuation allowances (64,754,872 ) (61,025,933 ) Net deferred tax assets 9,412,878 9,567,382 Analysis as: Current 1,922,242 2,075,802 Non-current 7,490,636 7,491,580 Total deferred tax assets 9,412,878 9,567,382 |
Schedule of Deferred Tax Liabilities | At December 31, 2013 2014 $ $ Deferred tax liabilities: Intangible assets (451,042 ) (262,926 ) Total deferred tax liabilities (451,042 ) (262,926 ) Analysis as: Current (6,133 ) - Non-current (444,909 ) (262,926 ) Total deferred tax liabilities (451,042 ) (262,926 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
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 Volatility rate 84 % Dividend yield 0 % |
Schedule of Stock Option Activity | Weighted average Number of Weighted average remaining Aggregate Options exercise price contract term intrinsic value Outstanding at January 1, 2014 297,120 $ 1.087 2.65 $ - Forfeited (94,810 ) $ 1.283 1.33 $ - Outstanding at December 31, 2014 (all vested and exercisable) 202,310 $ 0.995 1.33 $ - |
RELATED PARTY TRANSACTIONS AN37
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Amounts due from related parties [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | Years ended December 31, 2013 2014 $ $ Trade related balances 78,319,560 75,713,936 Non-trade related balances 5,667,293 12,333,542 Amounts due from related parties 83,986,853 88,047,478 |
Trade related balances to receivables and prepayments [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | At December 31, Name of related party 2013 2014 $ $ CEEG (Nanjing) Semiconductor Co., Ltd. 74,922,671 70,186,196 China Electric Equipment Group Co., Ltd. 1,833,709 4,054,056 CEEG (Nanjing) Solar Research Institute 1,527,431 597,774 CEEG (Jiangsu) Insulated New Material Co., Ltd. 35,749 4,620 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 44,942 Nanjing Xinde New Energy Technology Co., Ltd. - 583,390 CEEG Holding Co.,Ltd. - 148,768 Jiangsu CEEG Business Co., Ltd. - 94,190 78,319,560 75,713,936 |
Amounts due to related parties [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | At December 31, 2013 2014 $ $ Trade related balances 6,609,510 4,424,706 Non-trade related balances 5,188,009 4,696,075 Amounts due to related parties 11,797,519 9,120,781 |
Trade related balances to payables and pre-collected amounts [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | At December 31, Name of related party 2013 2014 $ $ Jiangxi Jingde Semiconductor New Material Co., Ltd. 3,181,214 111,013 China Electric Equipment Group Co., Ltd. 454,759 522,763 CEEG (Nanjing) Intelligent Technology Co., Ltd. 190,067 172,852 CEEG (Jiangsu) Insulated New Material Co., Ltd. 1,701,026 1,442,674 CEEG (Nanjing) Semiconductor Co., Ltd. 1,082,444 140,865 CEEG (Nanjing) Solar Research Institute - 1,923,774 CEEG (HK) Limited Co., Ltd. - 47,029 Jiangsu Xinde Minyong Photovoltaic System Co., Ltd. - 63,736 6,609,510 4,424,706 |
Sales to related parties [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | Name of related party Years ended December 31, 2012 2013 2014 $ $ $ CEEG (Nanjing) Solar Research Institute 4,997,073 1,450,689 333,943 CEEG (Nanjing) Semiconductor Co., Ltd. - 247,563 9,736 China Electric Equipment Group (Hong Kong) Co., Ltd. 245,341 71,852 - China Electric Equipment Group Co., Lt 51,216 7,435,809 5,333,313 CEEG (Jiangsu) Insulated New Material Co., Ltd. 537,278 606,322 - CEEG Korea Co., Ltd. 1,393 - 4,065 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 38,893 95,555 Jiangsu Xinde Civil Photovoltaic System Co., Ltd. - - 715,691 Jiangsu CEEG Cloud Commercial Co., Ltd. - - 328,053 Nanjing Xinde New Energy Technology Co., Ltd. - - 1,501,211 CEEG Holding Co., Ltd. - - 1,738,797 CEEG Xinde (Shanghai)New Energy Co., Ltd. - - 8,190 5,832,301 9,851,128 10,068,554 |
Purchases from related parties [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | Name of related party Years ended December 31, 2012 2013 2014 $ $ $ China Electric Equipment Group Co., Ltd. - 4,778,993 379,275 CEEG (Nanjing) Semiconductor Co., Ltd. 32,011,217 21,449,705 40,296 Jiangxi Jingde Semiconductor New Material Co., Ltd. - 4,811,590 - CEEG (Jiangsu) Insulated New Material Co., Ltd. 3,852,558 6,181,715 3,668,758 CEEG (Nanjing) Special Transformer Co., Ltd. - 181 - 35,863,775 37,222,184 4,088,329 |
Short-term borrowings [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Balances and Transactions | Years ended December 31, 2012 2013 2014 $ $ $ 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, 2014 | |
Long-term Purchase Commitment [Line Items] | |
Schedule of Future Minimum Payments Under Operating Leases | 2015 $ 1,746,724 2016 $ 105,491 2017 $ 57,945 2018 $ 29,417 2019 $ 29,417 Over 5 years $ 31,868 $ 2,000,862 |
Schedule of Purchase Commitments | At December 31, 2012 2013 2014 $ $ $ Commitments to purchase property, plant and equipment (1) 20,415,660 13,356,755 8,028,764 Commitments to purchase silicon raw materials (2) 899,304,092 845,131,131 464,634,744 919,719,752 858,487,886 472,663,508 |
Schedule of Long-Term Supply Agreements | Twelve-month period ending December 31, 2015 $ 232,317,372 2016 $ 232,317,372 Total $ 464,634,744 |
Property, Plant and Equipment [Member] | |
Long-term Purchase Commitment [Line Items] | |
Schedule of Future Minimum Payments Under Operating Leases | Twelve-month period ending December 31, 2015 $ 8,011,239 2016 $ 17,525 Total $ 8,028,764 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Revenues by Geographic Area | Years ended December 31, 2012 2013 2014 $ $ $ Europe: - Germany 65,979,111 43,997,078 15,732,066 - Italy 45,429,510 7,747,266 856,757 - Spain 656,723 1,558,828 81,246 - Belgium 1,953,916 1,319,670 244,416 - France 19,758,758 48,504,587 69,270,852 - Czech Republic and Slovakia 5,699,269 1,806,237 645,756 - Bulgaria 22,300,958 1,886,258 60,928 - United Kingdom 11,844,591 6,055,612 7,115,464 - Others 34,582,052 36,316,562 10,791,911 Europe total 208,204,888 149,192,098 104,799,396 PRC 29,148,928 97,038,992 137,148,042 India 867,177 26,943,051 20,328,345 South Korea 14,244 - 8,751 Australia 39,605,278 7,783,075 8,400,530 America 1,932,147 1,837,797 2,400,047 Japan - 31,313,082 57,774,158 Others 12,948,699 2,077,599 10,248,428 Total net revenues 292,721,361 316,185,694 341,107,697 |
ORGANIZATION AND PRINCIPAL AC40
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
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 (Nanjing) Co., Ltd. ("Sunergy Nanjing") [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% |
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% |
CSUN Eurasia Energy Systems Industry and Trade Inc [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 80.00% |
CSUN Eurasia Energy Technologies Industry and Trade Inc. [Member]. | |
Business Acquisition [Line Items] | |
Percentage of ownership | 80.00% |
Lianyungang Yuanhui Solar Power [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
China Sunergy ( Nanjing ) Solar Energy Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
China Sunergy (Nanjing) Power Science & Technology Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
Juancheng Xingze Solar Electric Power Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
CSUN Energy Solutions Australia Pty Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
CSUN Australia Pty. Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
CSUN (Japan) Solar Energy Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 70.00% |
CSUN Energy Investment Inc [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 80.00% |
Korea Sunergy Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Percentage of ownership | 50.00% |
SUMMARY OF PRINCIPAL ACCOUNTI41
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Project Assets) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Project assets | $ 8,221,927 | $ 10,154,775 |
Module Cost [Member] | ||
Project assets | 2,227,804 | 2,816,687 |
Development [Member] | ||
Project assets | $ 5,994,123 | $ 7,338,088 |
SUMMARY OF PRINCIPAL ACCOUNTI42
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Property, Plant, and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
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 ACCOUNTI43
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2014USD ($)$ / W | Dec. 31, 2013USD ($)$ / W | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($)$ / W | |
Summary Of Accounting Policies [Line Items] | ||||
Operating loss | $ (30,963,339) | $ (37,237,256) | $ (105,732,514) | |
Average product selling price | $ / W | 0.63 | 0.59 | 1.36 | |
Interest costs capitalized | $ 4,425,863 | $ 3,816,232 | 3,180,454 | |
Cash and cash equivalents | 42,078,988 | $ 54,295,577 | $ 183,312,417 | $ 209,478,864 |
Project assets impairment | 1,608,505 | |||
Cash flows from operating activities | (62,502,409) | $ (103,145,212) | $ (15,612,697) | |
Restricted cash | 179,395,642 | 194,195,634 | ||
Short-term bank borrowings | 356,793,246 | 304,827,038 | ||
Short-term bank loan renewed | 88,200,000 | |||
Current portion of long-term debt | 20,412,210 | $ 35,427,888 | ||
Assets and liabilities, net | $ 53,300,000 | |||
Amortization period | 3 years | |||
Impairment of intangible assets | ||||
Advertising costs | $ 783,942 | $ 938,330 | $ 2,665,486 | |
Shipping and handling costs | $ 4,781,150 | 4,890,611 | 3,747,564 | |
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 | $ 260,000 | |||
Cash and cash equivalents and restricted cash | 164,193,726 | 209,116,209 | ||
Government grants | 948,641 | $ 1,921,965 | $ 889,239 | |
Government grants, non-current | 4,700,000 | |||
Research and development expenses offset | $ 200,000 | |||
Minimum [Member] | ||||
Summary Of Accounting Policies [Line Items] | ||||
Exchange of goods period | 30 years | |||
Maximum [Member] | ||||
Summary Of Accounting Policies [Line Items] | ||||
Exchange of goods period | 45 years | |||
Land Use Rights [Member] | ||||
Summary Of Accounting Policies [Line Items] | ||||
Amortization period | 50 years |
SUMMARY OF PRINCIPAL ACCOUNTI44
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Purchase and Selling Transactions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Polysilicon [Member] | |||
Purchasing And Selling Inventory [Line Items] | |||
Purchase | $ 3,292,306 | $ 2,704,839 | |
Solar wafer [Member] | |||
Purchasing And Selling Inventory [Line Items] | |||
Sell | 1,586,980 | $ 155,869 | $ 7,459,649 |
Solar cell [Member] | |||
Purchasing And Selling Inventory [Line Items] | |||
Sell | 1,976,141 | ||
Purchase | 11,971,938 | $ 382,716 | $ 26,887,923 |
Solar module [Member] | |||
Purchasing And Selling Inventory [Line Items] | |||
Sell | $ 14,297,671 | $ 1,790,579 | $ 1,148,789 |
SUMMARY OF PRINCIPAL ACCOUNTI45
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Warranty Costs) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |||
Beginning Balance | $ 20,129,274 | $ 17,163,711 | $ 14,763,321 |
Addition | 2,785,113 | 3,366,686 | 2,760,248 |
Claimed | (496,552) | (401,123) | (359,858) |
Ending Balance | $ 22,417,835 | $ 20,129,274 | $ 17,163,711 |
SUMMARY OF PRINCIPAL ACCOUNTI46
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Reconciliation of Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |||
Opening balance | $ (64,940,205) | $ (63,006,093) | $ (15,869,894) |
Addition | (10,337,119) | $ (47,400,809) | |
Reversal | $ 4,799,411 | $ 9,836,790 | |
Write-off | $ 361,049 | ||
Effect of exchange rate change in foreign currency | $ 1,091,047 | $ (1,433,783) | (96,439) |
Ending balance | $ (59,049,747) | $ (64,940,205) | $ (63,006,093) |
SUMMARY OF PRINCIPAL ACCOUNTI47
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Accounts Receivable from Customers Accounting for 10% Percent or More) (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Company A [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable | 21.00% | 22.00% |
Company B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable | 11.00% | |
[1] | Less than 10% |
SUMMARY OF PRINCIPAL ACCOUNTI48
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (Loss) Per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding securities | 202,310 | 297,120 | 5,155,598 |
Outstanding options and restricted shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding securities | 202,310 | 297,120 | 344,190 |
Assumed conversion of convertible senior notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding securities | 4,811,408 |
SUMMARY OF PRINCIPAL ACCOUNTI49
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Computation of Basic and Diluted Income Per Share) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |||
Net income (loss) attributable to ordinary shareholders- for the calculation of basic income (loss) per share | $ (56,096,366) | $ (50,609,081) | $ (133,580,664) |
Net income (loss) attributable to ordinary shareholders- for the calculation of diluted income (loss) per share | $ (56,096,366) | $ (50,609,081) | $ (133,580,664) |
Weighted-average ordinary shares outstanding-for the calculation of basic income (loss) per share | 267,287,253 | 255,102,003 | 240,701,253 |
Weighted-average ordinary shares outstanding- for the calculation of diluted income (loss) per share | 267,287,253 | 255,102,003 | 240,701,253 |
Net income (loss) per share: | |||
Basic | $ (0.21) | $ (0.20) | $ (0.55) |
Diluted | $ (0.21) | $ (0.20) | $ (0.55) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
INVENTORIES [Abstract] | |||
Raw materials | $ 26,697,632 | $ 11,170,602 | |
Work-in-process | 990,073 | 12,528,549 | |
Finished goods | 25,195,519 | 20,958,503 | |
Inventories | 52,883,224 | 44,657,654 | |
Inventory write down | $ 1,353,770 | $ 1,663,051 | $ 6,925,478 |
PROPERTY, PLANT AND EQUIPMENT51
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 238,870,565 | $ 222,617,164 | |
Less: Accumulated depreciation | (107,510,326) | (88,912,568) | |
Property, plant and equipment | 131,360,239 | 133,704,596 | |
Construction in process | 95,439,441 | 89,919,590 | |
Property, plant and equipment, net | 226,799,680 | 223,624,186 | |
Depreciation expense | 19,487,405 | 20,014,581 | $ 16,382,485 |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 63,695,930 | 62,472,729 | |
Plant and machinery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 158,824,781 | 144,361,757 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 14,733,578 | 14,117,389 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,616,276 | $ 1,665,289 |
PREPAID LAND USE RIGHTS (Schedu
PREPAID LAND USE RIGHTS (Schedule of Land Use Rights, Net) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
PREPAID LAND USE RIGHTS [Abstract] | ||
Prepaid land use rights, cost | $ 25,627,478 | $ 30,086,477 |
Less: Accumulated amortization | (2,252,352) | (2,201,737) |
Prepaid land use rights, net | $ 23,375,126 | $ 27,884,740 |
PREPAID LAND USE RIGHTS (Narrat
PREPAID LAND USE RIGHTS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
PREPAID LAND USE RIGHTS [Abstract] | |||
Amortization expense | $ 567,312 | $ 662,677 | $ 637,687 |
Amortization expense, 2015 | 567,312 | ||
Amortization expense, 2016 | 567,312 | ||
Amortization expense, 2017 | 567,312 | ||
Amortization expense, 2018 | 567,312 | ||
Amortization expense, 2019 | 567,312 | ||
Subsidiary Five [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Prepaid land use rights | 4,465,743 | ||
Accumulated amortization | $ 523,530 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense related to intangible assets | $ 1,986,621 | $ 2,852,325 |
BANK BORROWINGS (Schedule of Ba
BANK BORROWINGS (Schedule of Bank Borrowings) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
BANK BORROWINGS [Abstract] | ||
Short-term bank borrowings | $ 356,793,246 | $ 304,827,038 |
Current portion of long-term borrowings | 20,412,210 | 35,427,888 |
Long-term bank borrowings | 272,348,001 | 265,975,939 |
Total | $ 649,553,457 | $ 606,230,865 |
BANK BORROWINGS (Narrative) (De
BANK BORROWINGS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Short-term bank borrowings annual average interest rates | 6.88% | 7.01% |
Long-term bank borrowings have annual average interest rates | 4.20% | 4.74% |
Credit facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | $ 292 | |
Short term credit facility, amount withdrawn | 215.9 | |
Short term credit facility, amount available | 76.2 | |
Credit facilities [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | 158.4 | |
Short term credit facility, amount available | $ 20.1 | |
Debt instrument, term | 7 years | |
Credit facilities [Member] | China Development Bank, Secondary Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | $ 50 | |
Debt instrument, term | 4 years | |
Credit facilities [Member] | Shanghai Rural Commercial Bank [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | $ 20.1 | |
Short term credit facility, amount available | $ 6.7 | |
Debt instrument, term | 6 years | |
Credit facilities [Member] | Bank of Nanjing [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | $ 41 | |
Debt instrument, term | 3 years | |
Credit facilities [Member] | Deniz Bank [Member] | ||
Debt Instrument [Line Items] | ||
Short term credit facility | $ 5 | |
Debt instrument, term | 3 years | |
Long-term bank borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date, start | Dec. 31, 2016 | |
Maturity date, end | Dec. 31, 2018 |
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 ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ||
Debt guarantee, fixed deposit | $ 209 | $ 211.1 |
Debt guarantee | 341.6 | 303.2 |
China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 16.3 | 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 [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 26.1 | 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 machinery from China Sunergy (Nanjing) Co., Ltd. [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 8.1 | 16.1 |
CEEG(Jiangsu) Ltd. and Group Chairman Mr. Tingxiu Lu [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 13.1 | 8.2 |
Construction in progress [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 3.6 | 4.9 |
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 | $ 1 | 3.3 |
Shareholder of subsidiaries in Turkey [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 3 | $ 0.5 |
China Electric Equipment Group Co., Ltd. and Jiangsu Xinde Asset Management Co., Ltd. and CEEG(Zhengjiang) Power Transformer and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 8.2 | |
Jiangsu Xinde Asset Management Co., Ltd and CEEG (zhenjiang) Power Transformer Co., Ltdand Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 8.2 | |
Fixed deposit pledge and shareholder of subsidiaries in Turkey [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 0.7 | |
Fixed deposit pledge and China Electric Equipment Group Co., Ltd. [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 10 | |
Construction in Progress & Fix assets and 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 | 1.6 | |
CEEG (Jiangsu) Limited and CEEG Special Transformer Co., Ltd and new energy and Land use right and plant [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 32.7 |
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 ($) $ in Millions | Dec. 31, 2014 | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ||
Debt guarantee, fixed deposit | $ 51.2 | $ 26.8 |
Debt guarantee | $ 292.8 | 301.3 |
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 | $ 38.2 | 42.5 |
Group Chairman Mr. Tingxiu Lu and his stock rights in China Electric Equipment Group Co., Ltd [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 50 | 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 | 30.6 |
Construction in progress [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 11.1 | |
China Electric Equipment Group Co., Ltd. and machinery [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 13 | $ 7.5 |
China Electric Equipment Group Co., Ltd. and Group Chairman Mr. Tingxiu Lu and his wife Mrs Guilan Shi [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | 100 | |
Construction in Progress & Property, plant and equipment [Member] | ||
Guarantor Obligations [Line Items] | ||
Debt guarantee | $ 9.8 |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2011USD ($) | |
FAIR VALUE MEASUREMENT [Abstract] | |
Goodwill impairment loss | $ 14.8 |
CONVERTIBLE SENIOR NOTES (Detai
CONVERTIBLE SENIOR NOTES (Details) - USD ($) | Jul. 01, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity, Class of Treasury Stock [Line Items] | ||||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 | ||
Default percentage of principal amount, minimum | 25.00% | |||
Issuance costs | $ 4,300,000 | |||
Amortization of convertible senior notes | $ 15,934 | $ 964,749 | ||
Payment of convertible senior notes repurchase | $ 1,500,000 | 15,651,250 | ||
Gain on repurchase of convertible senior notes | 10,348,750 | |||
Convertible Senior Notes Due June 15, 2013 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Convertible senior notes issued | $ 54,500,000 | |||
Convertible senior notes interest rate | 4.75% | |||
Share lending arrangement [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Issuance costs | 1,900,000 | |||
Amortization of convertible senior notes | $ 10,000 | 300,000 | ||
Conversion [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Conversion amount | $ 1,000 | |||
Conversion denomination amount | $ 1,000 | |||
Convertible notes [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase | 26,000,000 | |||
Amortization of convertible senior notes | $ 10,000 | $ 700,000 | ||
American Depository Shares [Member] | Share lending arrangement [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares borrowed | 1,477,000 | |||
Lending fee per share | $ 0.0018 | |||
American Depository Shares [Member] | Conversion [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Conversion of stock, shares | 27.10 | |||
Conversion price | $ 36.9 | |||
American Depository Shares [Member] | Conversion [Member] | Maximum [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Conversion of stock, shares | 32.52 | |||
Conversion price | $ 30.75 | |||
Over-Allotment [Member] | Convertible Senior Notes Due June 15, 2013 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Convertible senior notes issued | $ 4,500,000 | |||
Common Stock [Member] | Conversion [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Conversion of stock, shares | 18 | |||
Conversion price | $ 0.0001 | |||
Cash [Member] | Share lending arrangement [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Percentage of market value provided as collateral | 100.00% | |||
Deposit [Member] | Share lending arrangement [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Percentage of market value provided as collateral | 100.00% |
MAINLAND CHINA CONTRIBUTION P61
MAINLAND CHINA CONTRIBUTION PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MAINLAND CHINA CONTRIBUTION PLAN [Abstract] | |||
Total contributions | $ 5.1 | $ 5.9 | $ 6.2 |
PROFIT APPROPRIATION (Details)
PROFIT APPROPRIATION (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2013CNY (¥) | |
PROFIT APPROPRIATION [Abstract] | ||||
General reserve fund annual appropriation after tax profit | 10.00% | |||
Amount of restricted paid-in capital and statutory reserve funds | $ 7.9 | ¥ 49.4 | $ 7.9 | ¥ 49.4 |
Restricted share capital | $ 284.1 | ¥ 1,737.6 |
OTHER (EXPENSE) INCOME, NET (De
OTHER (EXPENSE) INCOME, NET (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
OTHER (EXPENSE) INCOME, NET [Abstract] | ||||
Foreign currency exchange gain (loss) , net | $ (12,721,957) | $ (826) | $ 397,621 | |
Convertible notes repurchase gain | 10,348,750 | |||
Government grants | $ 948,641 | $ 1,921,965 | $ 889,239 | |
Gain on disposal of subsidiaries (Note (a)) | [1] | $ 9,150,952 | 2,196,198 | |
Compensation in relation to dispute settlement (Note (b)) | [2] | 1,790,214 | ||
Forgiveness of interest owe to a related party | 2,436,882 | |||
Others | $ 17,054 | 630,354 | $ (148,672) | |
Other (expense) income, net | $ (2,605,310) | $ 8,974,787 | $ 11,486,938 | |
[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 the photovoltaic project's engineering and sales, and were on their pre-operating stage. During the year of 2013, 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 $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 $0.7 million in Other (expense) income, net. The disposal 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. The gain on disposal of subsidiary for the year ended December 31, 2014 arose from disposal of the Company's wholly owned subsidiary, China Sunergy (Shanghai) Co., Ltd. (“Sunergy Shanghai”). Sunergy Shanghai was mainly engaged in Solar cells manufacturing, and was not in operation due to the over-capacity of the Solar cells manufacturing according to the best market estimation from the management. During the current year, the Company entered into a sale agreement with China Electric Equipment Group Co., Ltd. to dispose of its 100% equity interest in Sunergy Shanghai. The disposal was completed on April 3, 2014. The amount of the consideration for disposal of Sunergy Shanghai was $37.6 million and $24.6 million was settled through forgiveness of the amount due from the Group by Sunergy Shanghai and the Group expected to receive the net cash consideration of $13.0 million, of which $ 6.8 million has been collected. The carrying amount of net assets on the date of disposal was $28.4 million. The Company recorded a disposal gain of US$9.2 million in Other (expense) income, net. The disposal did not constitute discontinued operation as the Company disposed Sunergy Shanghai to a related party and the Company intends to have continuation of activities with Sunergy Shanghai, such as significant business and in and out cash-flows, after the disposal transaction. | |||
[2] | The compensation in relation to dispute settlement is the compensation payment from a supplier due to its failure to provide the Company with solar modules pursuant to the agreement. |
OTHER (EXPENSE) INCOME, NET (Na
OTHER (EXPENSE) INCOME, NET (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal of subsidiaries (Note (a)) | [1] | $ 9,150,952 | $ 2,196,198 | |
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 | |||
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 | |||
China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai") [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 100.00% | |||
Consideration for disposal | $ 37,600,000 | |||
Consideration settled through forgiveness of debt | 24,600,000 | |||
Net cash consideration | 13,000,000 | |||
Collected | 6,800,000 | |||
Carrying value of the assets for sale | 28,400,000 | |||
Gain on disposal of subsidiaries (Note (a)) | $ 9,200,000 | |||
[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 the photovoltaic project's engineering and sales, and were on their pre-operating stage. During the year of 2013, 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 $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 $0.7 million in Other (expense) income, net. The disposal 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. The gain on disposal of subsidiary for the year ended December 31, 2014 arose from disposal of the Company's wholly owned subsidiary, China Sunergy (Shanghai) Co., Ltd. (“Sunergy Shanghai”). Sunergy Shanghai was mainly engaged in Solar cells manufacturing, and was not in operation due to the over-capacity of the Solar cells manufacturing according to the best market estimation from the management. During the current year, the Company entered into a sale agreement with China Electric Equipment Group Co., Ltd. to dispose of its 100% equity interest in Sunergy Shanghai. The disposal was completed on April 3, 2014. The amount of the consideration for disposal of Sunergy Shanghai was $37.6 million and $24.6 million was settled through forgiveness of the amount due from the Group by Sunergy Shanghai and the Group expected to receive the net cash consideration of $13.0 million, of which $ 6.8 million has been collected. The carrying amount of net assets on the date of disposal was $28.4 million. The Company recorded a disposal gain of US$9.2 million in Other (expense) income, net. The disposal did not constitute discontinued operation as the Company disposed Sunergy Shanghai to a related party and the Company intends to have continuation of activities with Sunergy Shanghai, such as significant business and in and out cash-flows, after the disposal transaction. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2012 | Dec. 31, 2010 | |
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |
Accumulated deficit | $ (321,292,516) | $ (265,196,150) | |||
EIT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | |||
Extended [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statue of limitations period | 5 years | 5 years | |||
Special circumstance [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statue of limitations period | 10 years | 10 years | |||
Underpayment of income tax liability in excess of | ¥ | ¥ 100,000 | ||||
China Sunergy (Hong Kong) Co.,Limited ("Sunergy Hong Kong") [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |
China Sunergy Trading (Hong Kong) Co., Limited [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |
China Sunergy (Shanghai) Co., Ltd. ("Sunergy Nanjing") [Member] | EIT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Preferential tax rate | 15.00% | 15.00% | 12.50% | ||
Tax exemption period | 2 years | 2 years | |||
Enterprise income tax reduction | 50.00% | 50.00% | |||
Enterprise income tax reduction period | 3 years | 3 years | |||
China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai") [Member] | EIT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | |||
CEEG (Shanghai) Solar Science Technology Co., Ltd. ("SST") [Member] | EIT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Preferential tax rate | 15.00% | 15.00% | |||
CEEG (Nanjing) Renewable Energy Co., Ltd ("NRE") [Member] | EIT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | |||
Hong Kong [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statue of limitations period | 6 years | 6 years | |||
PRC Subsidiaries [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Accumulated capital losses | $ 246,400,000 | ||||
Change in valuation allowance | 61,000,000 | ||||
Accumulated deficit | $ (327,600,000) |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Taxes by Tax Jurisdictions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income (loss) from operations before income tax: | |||
PRC | $ (49,984,053) | $ (42,999,102) | $ (107,662,760) |
Other jurisdictions | (5,896,782) | (7,482,743) | (9,635,640) |
Loss before income taxes | $ (55,880,835) | $ (50,481,845) | $ (117,298,400) |
INCOME TAXES (Schedule of Inc67
INCOME TAXES (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current income tax expense: | |||
PRC | $ (1,981,113) | ||
Other jurisdictions | $ (554,966) | (1,881,831) | $ (339,223) |
Total current income tax expense | (554,966) | (3,862,944) | (339,223) |
Deferred income tax credit | |||
PRC | 1,326,512 | 1,481,687 | (17,231,276) |
Other jurisdictions | (1,385,831) | 1,253,630 | 1,275,278 |
Total deferred income tax credit | (59,319) | 2,735,317 | (15,955,998) |
Total income tax credit (expense) | $ (614,285) | $ (1,127,627) | $ (16,295,221) |
INCOME TAXES (Schedule of Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
INCOME TAXES [Abstract] | |||
PRC statutory enterprise income tax rate | 25.00% | 25.00% | 25.00% |
Different tax rates in other jurisdictions | 1.50% | (3.30%) | (0.50%) |
Other non-deductible expense for tax purposes | 0.10% | (5.30%) | (0.20%) |
Effect of tax holiday | (7.60%) | (5.50%) | (5.20%) |
Effect of future tax rate change | 8.30% | 7.80% | |
50% additional deduction of R&D expense | 0.20% | 1.20% | 0.70% |
Change in valuation allowance | (21.50%) | (23.50%) | (41.10%) |
Others | 1.20% | 0.90% | (0.40%) |
Effective income tax rate | (1.10%) | (2.20%) | (13.90%) |
Gross tax exemption | $ 4,244,345 | $ 2,756,938 | $ 6,041,242 |
Tax holiday per share-basic | $ 0.02 | $ 0.01 | $ 0.03 |
Tax holiday per share-diluted | $ 0.02 | $ 0.01 | $ 0.03 |
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, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Depreciation of property, plant and equipment | $ 1,618,387 | $ 2,188,731 |
Warranty costs | 4,144,552 | 5,058,369 |
Inventory write-down | 408,683 | 517,001 |
Allowance for doubtful accounts | 12,882,718 | 14,608,597 |
Net operating loss carry forwards | 51,404,673 | 51,570,404 |
Fixed assets impairment | 17,397 | 175,045 |
Others | 116,905 | 49,603 |
Gross total deferred tax assets | 70,593,315 | 74,167,750 |
Valuation allowance | (61,025,933) | (64,754,872) |
Net deferred tax assets | 9,567,382 | 9,412,878 |
Analysis as: | ||
Current | 2,075,802 | 1,922,242 |
Non-current | $ 7,491,580 | $ 7,490,636 |
INCOME TAXES (Schedule of Def70
INCOME TAXES (Schedule of Deferred Tax Liabilities) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax liabilities: | ||
Intangible assets | $ (262,926) | $ (451,042) |
Analysis as: | ||
Current | (6,133) | |
Non-current | $ (262,926) | (444,909) |
Total deferred tax liabilities | $ (262,926) | $ (451,042) |
SHARE-BASED COMPENSATION (Narra
SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) | Jan. 09, 2009 | Feb. 05, 2008 | Jan. 10, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 |
Options authorized | 260,002 | ||||||||
Contractual life of the option | 10 years | ||||||||
Price per share | $ 1.283 | ||||||||
Share-based compensation | $ 217 | ||||||||
Weighted average fair value of stock options granted | $ 0.22 | $ 1.20 | |||||||
Certain Employees [Member] | |||||||||
Granted | 80,640 | ||||||||
Price per share | $ 0.7 | ||||||||
Consultant [Member] | |||||||||
Granted | 100,002 | ||||||||
Vesting period for plan | 5 years | ||||||||
Price per share | $ 0.7 | ||||||||
Share Incentive Plan [Member] | |||||||||
Options authorized | 2,500,000 | ||||||||
Granted | 716,226 | 2,050,900 | |||||||
Vesting period for plan | 4 years | ||||||||
Contractual life of the option | 10 years | ||||||||
Price per share | $ 1.283 | ||||||||
Second Plan [Member] | |||||||||
Options authorized | 4,190,748 | ||||||||
Granted | 2,397,301 | ||||||||
Vesting period for plan | 3 years | ||||||||
Second Plan [Member] | Restricted stock [Member] | |||||||||
Granted | 1,078,785 | ||||||||
Minimum [Member] | |||||||||
Contractual life of the option | 6 years | ||||||||
Maximum [Member] | |||||||||
Contractual life of the option | 10 years |
SHARE-BASED COMPENSATION (Sched
SHARE-BASED COMPENSATION (Schedule of Assumptions Used to Estimate Fair Value) (Details) | 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 |
SHARE-BASED COMPENSATION (Sch73
SHARE-BASED COMPENSATION (Schedule of Stock Option Activity) (Details) - USD ($) None in scaling factor is -9223372036854775296 | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | ||
Outstanding | 297,120 | |
Forfeited | (94,810) | |
Outstanding at December 31, 2014 | 202,310 | 297,120 |
Weighted average exercise price | ||
Outstanding | $ 1.087 | |
Forfeited | 1.283 | |
Outstanding at December 31, 2014 | $ 0.995 | $ 1.087 |
Weighted average remaining contractual term | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 3 months 29 days | 2 years 7 months 24 days |
Forfeited | 1 year 3 months 29 days | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 3 months 29 days | 2 years 7 months 24 days |
Aggregate intrinsic value | ||
Outstanding at December 31, 2014 |
RELATED PARTY TRANSACTIONS AN74
RELATED PARTY TRANSACTIONS AND BALANCES (Amounts Due from Related Parties) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 88,047,478 | $ 83,986,853 |
Trade related balances [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 75,713,936 | 78,319,560 |
Non-trade related balance [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 12,333,542 | $ 5,667,293 |
RELATED PARTY TRANSACTIONS AN75
RELATED PARTY TRANSACTIONS AND BALANCES (Trade Related Balances to Receivables and Prepayments) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 88,047,478 | $ 83,986,853 |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 70,186,196 | 74,922,671 |
Trade Related Balances [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 75,713,936 | 78,319,560 |
Trade Related Balances [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 70,186,196 | 74,922,671 |
Trade Related Balances [Member] | China Electric Equipment Group Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 4,054,056 | 1,833,709 |
Trade Related Balances [Member] | CEEG (Nanjing) Solar Research Institute [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 597,774 | 1,527,431 |
Trade Related Balances [Member] | CEEG (Jiangsu) Insulated New Material Co.,Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 4,620 | $ 35,749 |
Trade Related Balances [Member] | Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 44,942 | |
Trade Related Balances [Member] | Nanjing Xinde New Energy Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 583,390 | |
Trade Related Balances [Member] | CEEG Holding Co.,Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | 148,768 | |
Trade Related Balances [Member] | Jiangsu CEEG Business Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 94,190 |
RELATED PARTY TRANSACTIONS AN76
RELATED PARTY TRANSACTIONS AND BALANCES (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | $ 88,047,478 | $ 83,986,853 | |||
Amounts due to related parties | 9,120,781 | 11,797,519 | |||
Machinery transferred | $ 20,000 | 2,100,000 | $ 1,600,000 | ||
Forgiveness of interest owe to a related party | 2,436,882 | ||||
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | $ 70,186,196 | 74,922,671 | |||
Amount of prepayment balance settled through inventory supplies or return of cash | $ 70,000,000 | $ 75,000,000 | |||
Term period of settlement for prepayment balance | 1 year | 1 year | |||
Borrowings | (28,713,240) | $ (116,935,560) | |||
Repayment | 38,259,000 | $ 107,389,800 | |||
Loan to related party | 44,300,000 | ||||
Non-trade related balance [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | $ 12,333,542 | 5,667,293 | |||
Amounts due to related parties | 4,696,075 | 5,188,009 | |||
Non-trade related balance [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] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 3,958,029 | 3,963,883 | |||
Non-trade related balance [Member] | China Electric Equipment Group Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties | 3,600,000 | 4,100,000 | |||
Non-trade related balance [Member] | China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 6,180,174 | ||||
Trade related balances [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 75,713,936 | 78,319,560 | |||
Amounts due to related parties | 4,424,706 | 6,609,510 | |||
Trade related balances [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 70,186,196 | 74,922,671 | |||
Amounts due to related parties | 140,865 | 1,082,444 | |||
Trade related balances [Member] | China Electric Equipment Group Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 4,054,056 | 1,833,709 | |||
Amounts due to related parties | $ 522,763 | $ 454,759 |
RELATED PARTY TRANSACTIONS AN77
RELATED PARTY TRANSACTIONS AND BALANCES (Amounts Due to Related Parties) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 9,120,781 | $ 11,797,519 |
Trade related balances [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 4,424,706 | 6,609,510 |
Non-trade related balance [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 4,696,075 | $ 5,188,009 |
RELATED PARTY TRANSACTIONS AN78
RELATED PARTY TRANSACTIONS AND BALANCES (Trade Related Balances to Payables and Pre-Collected Amounts) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 9,120,781 | $ 11,797,519 |
Trade Related Balances [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 4,424,706 | 6,609,510 |
Trade Related Balances [Member] | Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 111,013 | 3,181,214 |
Trade Related Balances [Member] | China Electric Equipment Group Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 522,763 | 454,759 |
Trade Related Balances [Member] | CEEG (Jiangsu) Intelligent Technology Co., Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 172,852 | 190,067 |
Trade Related Balances [Member] | CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 140,865 | 1,082,444 |
Trade Related Balances [Member] | CEEG (Jiangsu) Insulated New Material Co.,Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 1,442,674 | $ 1,701,026 |
Trade Related Balances [Member] | CEEG (HK) Limited Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 47,029 | |
Trade Related Balances [Member] | Jiangsu Xinde Minyong Photovoltaic System Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 63,736 | |
Trade Related Balances [Member] | Ceeg Nanjing Solar Research Institute [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 1,923,774 |
RELATED PARTY TRANSACTIONS AN79
RELATED PARTY TRANSACTIONS AND BALANCES (Sales to Related Parties) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Sales | $ 341,107,697 | $ 316,185,694 | $ 292,721,361 |
Related Parties [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 10,068,554 | 9,851,128 | 5,832,301 |
CEEG (Nanjing) Solar Research Institute [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 333,943 | 1,450,689 | $ 4,997,073 |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 9,736 | 247,563 | |
China Electric Equipment Group (Hong Kong) Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 71,852 | $ 245,341 | |
China Electric Equipment Group Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 5,333,313 | $ 7,435,809 | 51,216 |
CEEG Korea Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 4,065 | $ 1,393 | |
Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 95,555 | $ 38,893 | |
CEEG (Jiangsu) Insulated New Material Co.,Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 606,322 | $ 537,278 | |
Jiangsu Xinde Civil Photovoltaic System Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 715,691 | ||
Jiangsu CEEG Cloud Commercial Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 328,053 | ||
Nanjing Xinde New Energy Technology Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 1,501,211 | ||
CEEG Holding Co.,Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 1,738,797 | ||
CEEG Xinde (Shanghai) New Energy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | $ 8,190 |
RELATED PARTY TRANSACTIONS AN80
RELATED PARTY TRANSACTIONS AND BALANCES (Purchases from Related Parties) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Purchase of raw materials | $ 4,088,329 | $ 37,222,184 | $ 35,863,775 |
China Electric Equipment Group Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | 379,275 | 4,778,993 | |
CEEG (Nanjing) Semiconductor Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | $ 40,296 | 21,449,705 | $ 32,011,217 |
Jiangxi Jingde Semiconductor New Material Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | 4,811,590 | ||
CEEG (Nanjing) Special Transformer Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | 181 | ||
CEEG (Jiangsu) Insulated New Material Co.,Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | $ 3,668,758 | $ 6,181,715 | $ 3,852,558 |
RELATED PARTY TRANSACTIONS AN81
RELATED PARTY TRANSACTIONS AND BALANCES (Short-Term Borrowings) (Details) - CEEG (Nanjing) Semiconductor Co., Ltd. [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 CONTINGENCIES82
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) Pure in Millions | 12 Months Ended | ||
Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Long-term Purchase Commitment [Line Items] | |||
Rent expense | $ 1,626,155 | $ 1,677,533 | $ 1,274,139 |
Silicon wafers [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Aggregate quantity of pieces to purchase | 986 | ||
Purchase agreement time period | 4 years |
COMMITMENTS AND CONTINGENCIES83
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases (Details) | Dec. 31, 2014USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
2,015 | $ 1,746,724 |
2,016 | 105,491 |
2,017 | 57,945 |
2,018 | 29,417 |
2,019 | 29,417 |
Over 5 years | 31,868 |
Future minimum lease payments | $ 2,000,862 |
COMMITMENTS AND CONTINGENCIES84
COMMITMENTS AND CONTINGENCIES (Schedule of Purchase Commitments) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Long-term Purchase Commitment [Line Items] | |||
Purchase commitments | $ 472,663,508 | $ 858,487,886 | $ 919,719,752 |
Property, plant and equipment [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Purchase commitments | 8,028,764 | 13,356,755 | 20,415,660 |
Silicon raw materials [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Purchase commitments | $ 464,634,744 | $ 845,131,131 | $ 899,304,092 |
COMMITMENTS AND CONTINGENCIES85
COMMITMENTS AND CONTINGENCIES (Schedule of Purchase Commitments for Property, Plant and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Long-term Purchase Commitment [Line Items] | |||
Total | $ 472,663,508 | $ 858,487,886 | $ 919,719,752 |
Property, plant and equipment [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
2,015 | 8,011,239 | ||
2,016 | 17,525 | ||
Total | $ 8,028,764 | $ 13,356,755 | $ 20,415,660 |
COMMITMENTS AND CONTINGENCIES86
COMMITMENTS AND CONTINGENCIES (Schedule of Long-Term Supply Agreements) (Details) | Dec. 31, 2014USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
2,015 | $ 232,317,372 |
2,016 | 232,317,372 |
Total | $ 464,634,744 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 341,107,697 | $ 316,185,694 | $ 292,721,361 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 15,732,066 | 43,997,078 | 65,979,111 |
Italy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 856,757 | 7,747,266 | 45,429,510 |
Spain [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 81,246 | 1,558,828 | 656,723 |
Belgium [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 244,416 | 1,319,670 | 1,953,916 |
France [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 69,270,852 | 48,504,587 | 19,758,758 |
Czech Republic and Slovakia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 645,756 | 1,806,237 | 5,699,269 |
Bulgaria [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 60,928 | 1,886,258 | 22,300,958 |
UK [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 7,115,464 | 6,055,612 | 11,844,591 |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 10,791,911 | 36,316,562 | 34,582,052 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 104,799,396 | 149,192,098 | 208,204,888 |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 137,148,042 | 97,038,992 | 29,148,928 |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 20,328,345 | $ 26,943,051 | 867,177 |
South Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 8,751 | 14,244 | |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 8,400,530 | $ 7,783,075 | 39,605,278 |
America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,400,047 | 1,837,797 | $ 1,932,147 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 57,774,158 | 31,313,082 | |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 10,248,428 | $ 2,077,599 | $ 12,948,699 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jun. 30, 2015 | Jan. 23, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Subsequent Event [Line Items] | |||||
Impairment charges | $ 1,608,505 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Consideration for disposal | $ 8,000,000 | ||||
Net assets | 9,800,000 | ||||
Impairment charges | $ 1,600,000 | ||||
Collected | $ 7,200,000 |
SCHEDULE I (BALANCE SHEET) (Det
SCHEDULE I (BALANCE SHEET) (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Amount due from subsidiaries | $ 88,047,478 | $ 83,986,853 |
Total current assets | 458,216,933 | 500,049,660 |
Property, plant and equipment, net | 226,799,680 | 223,624,186 |
Total assets | 720,891,869 | 764,652,946 |
Current liabilities: | ||
Total current liabilities | 511,528,715 | 512,496,481 |
Total liabilities | 821,382,964 | 809,039,391 |
Equity (deficit): | ||
Ordinary shares (par value $0.0001; 463,247,600 shares authorized, 267,287,253 shares issued and outstanding as of December 31, 2013 and 2014) | 24,070 | 24,070 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | 2,659 |
Accumulated deficit | (321,292,516) | (265,196,150) |
Accumulated other comprehensive income | 35,908,829 | 36,070,581 |
Total (deficit) | (99,989,916) | (43,731,798) |
TOTAL LIABILITIES AND (DEFICIT) | 720,891,869 | 764,652,946 |
Parent Company [Member] | ||
Current assets: | ||
Cash | 115,557 | 401,680 |
Amount due from subsidiaries | 79,521,658 | 79,100,696 |
Other receivables | 68,235 | 221,884 |
Total current assets | 79,705,450 | 79,724,260 |
Investments in subsidiaries | (179,395,255) | (123,416,770) |
Property, plant and equipment, net | 2,698 | 3,511 |
Total assets | (99,687,107) | (43,688,999) |
Current liabilities: | ||
Other liabilities | 302,809 | 42,799 |
Total current liabilities | 302,809 | 42,799 |
Total liabilities | 302,809 | 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, 2013 and 2014) | 24,070 | 24,070 |
Additional paid-in capital | 185,367,042 | 185,367,042 |
Treasury shares (at par value of $0.0001) | 2,659 | 2,659 |
Accumulated deficit | (321,691,379) | (265,196,150) |
Accumulated other comprehensive income | 36,307,692 | 36,070,581 |
Total (deficit) | (99,989,916) | (43,731,798) |
TOTAL LIABILITIES AND (DEFICIT) | $ (99,687,107) | $ (43,688,999) |
SCHEDULE I (BALANCE SHEET) (Par
SCHEDULE I (BALANCE SHEET) (Parenthetical) (Details) - $ / shares | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 463,247,600 | 463,247,600 |
Ordinary shares, shares issued | 240,701,253 | 240,701,253 |
Ordinary shares, shares outstanding | 240,701,253 | 240,701,253 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | |||
General and administrative expenses | $ (25,246,986) | $ (30,010,529) | $ (75,874,984) |
Total operating expenses | (41,585,258) | (52,449,245) | (104,539,712) |
Loss from operations | (30,963,339) | (37,237,256) | (105,732,514) |
Interest expense | (27,918,904) | (28,805,652) | (28,838,328) |
Interest income | 5,606,718 | 6,586,276 | 6,154,813 |
Other income (expense), net | (2,605,310) | 8,974,787 | 11,486,938 |
Net loss | (56,096,366) | (50,609,081) | (133,580,664) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
General and administrative expenses | (1,659,482) | (1,367,729) | (1,982,550) |
Total operating expenses | (1,659,482) | (1,367,729) | (1,982,550) |
Loss from operations | (1,659,482) | (1,367,729) | (1,982,550) |
Interest expense | (8,743) | (67,583) | (1,426,848) |
Interest income | 1,272,607 | 1,568,461 | 929,636 |
Equity in losses of subsidiaries | (56,215,596) | (50,695,469) | (141,703,447) |
Other income (expense), net | 115,985 | (46,761) | 10,602,545 |
Net loss | $ (56,495,229) | $ (50,609,081) | $ (133,580,664) |
SCHEDULE 1 STATEMENT OF COMPREH
SCHEDULE 1 STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | $ (56,096,366) | $ (50,609,081) | $ (133,580,664) |
Other comprehensive income: foreign currency translation adjustments, net of tax impact of nil for 2012, 2013 and 2014 | (269,475) | 584,066 | 824,167 |
Comprehensive loss | (56,258,118) | (50,061,888) | (132,756,541) |
Parent Company [Member] | |||
Net loss | (56,495,229) | (50,609,081) | (133,580,664) |
Other comprehensive income: foreign currency translation adjustments, net of tax impact of nil for 2012, 2013 and 2014 | 237,111 | 547,193 | 824,123 |
Comprehensive loss | $ (56,258,118) | $ (50,061,888) | $ (132,756,541) |
SCHEDULE 1 STATEMENT OF COMPR93
SCHEDULE 1 STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Details) - USD ($) None in scaling factor is -9223372036854775296 | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Parent Company [Member] | |||
Foreign currency translation, tax |
SCHEDULE I (STATEMENT OF CASH F
SCHEDULE I (STATEMENT OF CASH FLOWS) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating activities: | |||
Net loss attributable to China Sunergy Co., Ltd. | $ (56,096,366) | $ (50,609,081) | $ (133,580,664) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation | 217 | ||
Gain on repurchase of convertible senior notes | (10,348,750) | ||
Amortization of convertible senior notes | $ 15,934 | 964,749 | |
Others | $ 166,414 | 112,339 | 152,554 |
Changes in operating assets and liabilities: | |||
Amounts due from subsidiaries | 2,732,663 | (16,980,025) | (36,750,808) |
Net cash provided by (used in) operating activities | (62,502,409) | (103,145,212) | (15,612,697) |
Investing activities: | |||
Purchase of PPE | (20,193,342) | (40,901,214) | (44,288,415) |
Net cash (used in) investing activity | $ 7,289,656 | 2,196,514 | (183,446,465) |
Financing activities: | |||
Payment of convertible senior notes repurchase | (1,500,000) | (15,651,250) | |
Net cash used in financial activities | $ 49,656,574 | (30,895,326) | 171,163,933 |
Net increase (decrease) in cash and cash equivalents | (12,216,589) | (129,016,840) | (26,166,447) |
Cash and cash equivalents at the beginning of the year | 54,295,577 | 183,312,417 | 209,478,864 |
Cash and cash equivalents at the end of the year | $ 42,078,988 | 54,295,577 | 183,312,417 |
Supplemental disclosure of non-cash investing activities: | |||
Restricted cash collateral received in connection with Share Lending Agreement | (2,097,340) | 443,100 | |
Parent Company [Member] | |||
Operating activities: | |||
Net loss attributable to China Sunergy Co., Ltd. | $ (56,495,229) | (50,609,081) | (133,580,664) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Equity in gains/losses of subsidiaries | $ 56,215,596 | $ 50,695,469 | 141,703,447 |
Share-based compensation | 217 | ||
Gain on repurchase of convertible senior notes | (10,348,750) | ||
Amortization of convertible senior notes | $ 15,934 | 964,750 | |
Others | $ 813 | (256,363) | |
Changes in operating assets and liabilities: | |||
Other receivables | 153,649 | $ (61,798) | (52,466) |
Other liabilities | 260,010 | (752,627) | (11,832) |
Amounts due from subsidiaries | (420,962) | 2,318,743 | 15,517,779 |
Net cash provided by (used in) operating activities | $ (286,123) | 1,606,640 | $ 13,936,118 |
Investing activities: | |||
Purchase of PPE | (3,511) | ||
Net cash (used in) investing activity | (3,511) | ||
Financing activities: | |||
Payment of convertible senior notes repurchase | (1,500,000) | $ (15,651,250) | |
Net cash used in financial activities | (1,500,000) | (15,651,250) | |
Net increase (decrease) in cash and cash equivalents | $ (286,123) | 103,129 | (1,715,132) |
Cash and cash equivalents at the beginning of the year | 401,680 | 298,551 | 2,013,683 |
Cash and cash equivalents at the end of the year | $ 115,557 | $ 401,680 | 298,551 |
Supplemental disclosure of non-cash investing activities: | |||
Restricted cash collateral received in connection with Share Lending Agreement | $ 443,100 |