Daqo New Energy (DQ) 20-F 31 Mar 17 2016 FY Annual report (foreign) Financial data

Document And Entity Information

Document And Entity Information	12 Months Ended
	Dec. 31, 2016shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	DQ
Entity Registrant Name	DAQO NEW ENERGY CORP.
Entity Central Index Key	1,477,641
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	262,956,278

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 15,987,478	$ 14,490,011
Restricted cash	15,893,467	19,062,713
Accounts receivable, net of allowance for doubtful accounts of $1,087,465 and $10,163 as of December 31, 2015 and 2016, respectively	4,836,499	19,849,608
Note receivables	13,025,552	11,109,695
Prepaid expenses and other current assets	8,027,667	12,235,141
Advances to suppliers	1,722,783	1,028,287
Inventories	12,280,700	10,715,939
Amounts due from related parties	1,528,712	284,633
Total current assets	73,302,858	88,776,027
Property, plant and equipment, net	557,427,884	544,326,125
Prepaid land use rights, net	24,809,809	27,122,287
Deferred tax assets	585,944	626,965
Investment accounted for under the cost-method	581,581
TOTAL ASSETS	656,708,076	660,851,404
Current liabilities:
Short-term bank borrowings, including current portion of long-term bank borrowings	105,980,320	123,936,995
Accounts payable	18,745,297	17,491,292
Note payables	25,732,489	20,152,962
Advances from customers	7,519,605	8,183,376
Payables for purchases of property, plant and equipment	51,322,901	49,674,887
Accrued expenses and other current liabilities	8,320,041	8,616,831
Amounts due to related parties	26,829,605	46,396,527
Income tax payable	5,300,163	940,732
Total current liabilities	249,750,421	275,393,602
Long-term bank borrowings	111,948,913	118,548,430
Deferred government subsidies	23,279,820	25,252,882
Total liabilities	384,979,154	419,194,914
Commitments and contingencies (Note 18)
Ordinary shares;
$0.0001 per value 500,000,000 shares authorized as of December 31, 2015 and 2016; 279,214,103 and 279,214,103 shares issued as of December 31, 2015 and 2016, respectively and 260,836,578 and 262,956,278 shares outstanding as of December 31, 2015 and 2016, respectively	26,532	26,320
Additional paid in capital	240,111,533	236,358,070
Retained Earnings (accumulated deficit)	40,432,352	(3,061,404)
Accumulated other comprehensive income (loss)	(8,721,820)	8,780,313
Treasury Stock, at cost (4,643,150 and 4,643,150 shares as of December 31, 2015 and 2016, respectively)	(1,748,836)	(1,748,836)
Total shareholders' equity	270,099,761	240,354,463
Noncontrolling interest	1,629,161	1,302,027
Total equity	271,728,922	241,656,490
TOTAL LIABILITIES AND EQUITY	$ 656,708,076	$ 660,851,404

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 10,163	$ 1,087,465
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares issued	279,214,103	279,214,103
Ordinary shares, shares outstanding	262,956,278	260,836,578
Treasury Stock, shares	4,643,150	4,643,150

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues
Revenues	$ 229,101,211	$ 182,040,968	$ 182,571,852
Cost of revenues
Total cost of revenues	(148,672,693)	(144,491,083)	(139,308,511)
Gross profit	80,428,518	37,549,885	43,263,341
Operating (expenses) income:
Selling, general and administrative expenses	(16,104,057)	(12,603,824)	(10,293,851)
Research and development expenses	(4,001,438)	(923,664)	(1,486,978)
Other operating income, net	5,325,336	3,824,881	552,444
Long-lived assets impairment	(198,689)	(1,622,588)
Total operating expenses	(14,978,848)	(11,325,195)	(11,228,385)
Income from operations	65,449,670	26,224,690	32,034,956
Interest expense	(14,568,158)	(13,173,958)	(15,654,106)
Interest income	407,996	493,995	324,118
Exchange (loss) gain	(7,422)	640,678	(55,792)
Income before income taxes	51,282,086	14,185,405	16,649,176
Income tax expense	(7,358,089)	(1,137,821)
Net income	43,923,997	13,047,584	16,649,176
Net income attributable to noncontrolling interest	430,241	90,695
Net income attributable to Daqo New Energy Corp. ordinary shareholders	$ 43,493,756	$ 12,956,889	$ 16,649,176
NET (LOSS) EARNINGS PER ORDINARY SHARE
Basic—ordinary shares	$ 0.17	$ 0.05	$ 0.08
Diluted—ordinary shares	$ 0.16	$ 0.05	$ 0.08
ORDINARY SHARES USED IN CALCULATING EARNINGS PER ORDINARY SHARE
Basic—ordinary shares	261,742,244	258,015,851	206,349,976
Diluted—diluted shares	264,817,755	261,411,933	211,353,643
Products [Member] | Third parties [Member]
Revenues
Revenues	$ 217,907,014	$ 166,942,726	$ 158,256,598
Products [Member] | Related parties [Member]
Revenues
Revenues	10,900,252	9,069,816	15,840,748
Service fees [Member] | Third parties [Member]
Revenues
Revenues		3,203,298	5,165,254
Service fees [Member] | Related parties [Member]
Revenues
Revenues	$ 293,945	$ 2,825,128	$ 3,309,252

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 43,923,997	$ 13,047,584	$ 16,649,176
Other comprehensive income (loss):
Foreign currency translation adjustments	(17,605,240)	(11,286,150)	(3,662,013)
Total other comprehensive loss	(17,605,240)	(11,286,150)	(3,662,013)
Comprehensive income	26,318,757	1,761,434	12,987,163
Comprehensive income attributable to noncontrolling interest	327,134	61,415
Comprehensive income attributable to Daqo New Energy Corp. shareholders	$ 25,991,623	$ 1,700,019	$ 12,987,163

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)	Total	Ordinary shares [Member]	Treasury Stock [Member]	Additional paid in capital [Member]	Accumulated Loss [Member]	Accumulated other comprehensive income (loss) [Member]	Noncontrolling interest [Member]
Balance at Dec. 31, 2013	$ 137,326,561	$ 17,343	$ (398,672)	$ 146,676,163	$ (32,667,469)	$ 23,699,196
Balance, shares at Dec. 31, 2013		173,427,853
Net income	16,649,176				16,649,176
Other comprehensive loss	(3,662,013)					(3,662,013)
Share-based compensation	1,792,819			1,792,819
Follow-on equity offering, net of issuance costs	54,624,447	$ 5,000		54,619,447
Follow-on equity offering, net of issuance costs shares		50,000,000
Options Exercise	37,080	$ 15		37,065
Options Exercise, shares		150,000
Balance at Dec. 31, 2014	206,768,070	$ 22,358	(398,672)	203,125,494	(16,018,293)	20,037,183
Balance, shares at Dec. 31, 2014		223,577,853
Net income	13,047,584				12,956,889		90,695
Other comprehensive loss	(11,286,150)					(11,256,870)	(29,280)
Share-based compensation	3,687,951			3,687,951
Follow-on equity offering, net of issuance costs	27,996,959	$ 3,850		27,993,109
Follow-on equity offering, net of issuance costs shares		38,500,000
Options Exercise	275,783	$ 112		275,671
Options Exercise, shares		1,115,625
Repurchase of stock	$ (1,350,164)		(1,350,164)
Repurchase of stock, shares	(2,356,900)	(2,356,900)
Capital injection from noncontrolling shareholders	$ 2,516,457			1,275,845			1,240,612
Balance at Dec. 31, 2015	241,656,490	$ 26,320	(1,748,836)	236,358,070	(3,061,404)	8,780,313	1,302,027
Balance, shares at Dec. 31, 2015		260,836,578
Net income	43,923,997				43,493,756		430,241
Other comprehensive loss	(17,605,240)					(17,502,133)	(103,107)
Share-based compensation	2,702,089			2,702,089
Options Exercise	$ 1,051,586	$ 212		1,051,374
Options Exercise, shares	2,119,700	2,119,700
Balance at Dec. 31, 2016	$ 271,728,922	$ 26,532	$ (1,748,836)	$ 240,111,533	$ 40,432,352	$ (8,721,820)	$ 1,629,161
Balance, shares at Dec. 31, 2016		262,956,278

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Follow-on equity offering, issuance costs	$ 2,033,041	$ 3,375,553

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 43,923,997	$ 13,047,584	$ 16,649,176
Adjustments to reconcile net income to net cash provided by operating activities:
Long-lived assets impairment	198,689	1,622,588
Share-based compensation	2,702,089	3,687,951	1,792,819
Inventory write-down		62,422	175,568
Provision of allowance for doubtful accounts	(1,053,041)	(2,026,567)	(3,823,744)
Depreciation of property, plant and equipment	33,822,082	31,361,026	28,007,943
Loss on disposal of Property Plant and Equipment	181,028	166,283	314,728
Deferred tax assets	445	(626,965)
Changes in operating assets and liabilities:
Accounts receivable	14,890,598	(10,399,283)	4,775,333
Note receivables	(2,634,860)	36,898,166	(34,702,180)
Prepaid expenses and other current assets	3,415,637	30,465	10,217,835
Advances to suppliers	(761,045)	264,361	(513,373)
Inventories	(2,258,281)	(1,622,269)	484,562
Amount due from related parties	(1,318,195)	5,481,362	2,193,604
Prepaid land use rights	557,162	595,716	623,413
Other non-current assets		161,657	229,688
Accounts payable	2,386,015	1,452,811	(475,966)
Note payables	(1,403,994)	(14,733,475)	31,992,814
Accrued expenses and other current liabilities	260,879	59,045	1,677,622
Income tax payable	4,420,313	940,732
Advances from customers	(134,155)	(2,051,000)	(13,813,120)
Amount due to related parties	1,815,307	2,178,445	(453,075)
Deferred government subsidies	(338,733)	(124,842)	266,082
Net cash provided by operating activities	98,671,937	66,426,213	45,619,729
Investing activities:
Purchases of property, plant and equipment	(67,477,008)	(81,364,037)	(77,028,755)
(Decrease)/Increase in restricted cash	1,935,536	2,121,603	(13,560,277)
Proceeds from disposition of Nanjing Daqo		5,110,085
Investment accounted for under the cost-method	(581,581)
Net cash used in investing activities	(66,123,053)	(74,132,349)	(90,589,032)
Financing activities:
Proceeds from related parties loans	126,400,842	245,957,818	275,134,122
Repayment of related parties loans	(148,463,137)	(276,575,346)	(275,088,560)
Proceeds from bank borrowings	106,986,666	237,031,976	176,114,553
Repayment of bank borrowings	(116,255,480)	(220,611,404)	(186,549,888)
Purchase and retirement of treasury shares		(1,350,164)
Proceeds from options exercised	1,051,586	275,783	37,080
Proceeds from follow-on equity offering		30,030,000	58,000,000
Insurance cost for follow-on equity offering		(2,033,041)	(3,375,553)
Capital injection from noncontrolling shareholders		2,516,457
Net cash provided by (used in) financing activities	(30,279,523)	15,242,079	44,271,754
Effect of exchange rate changes on cash and cash equivalents	(771,894)	(114,415)	(65,052)
Net increase (decrease) in cash and cash equivalents	1,497,467	7,421,528	(762,601)
Cash and cash equivalents at the beginning of the year	14,490,011	7,068,483	7,831,084
Cash and cash equivalents at the end of the year	15,987,478	14,490,011	7,068,483
Supplemental disclosure of cash flow information:
Interest paid, net of capitalized interest	14,215,745	13,284,899	17,771,457
Income taxes paid	2,998,658	2,726,825
Supplemental schedule of non-cash investing activities:
Accrued purchases of property, plant and equipment	65,625,603	52,786,103	85,640,643
Purchases of property, plant and equipment included in amounts due to related parties	$ 3,351,004	$ 262,974	$ 5,651,053

ORGANIZATION AND PRINCIPAL ACTI

ORGANIZATION AND PRINCIPAL ACTIVITIES	12 Months Ended
	Dec. 31, 2016
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract]
ORGANIZATION AND PRINCIPAL ACTIVITIES	1. ORGANIZATION AND PRINCIPAL ACTIVITIES Daqo New Energy Corp. (the “Company”) and its wholly owned subsidiaries, Chongqing Daqo New Energy Co., Ltd. (“Chongqing Daqo”) and Xinjiang Daqo New Energy Co., Ltd. (“Xinjiang Daqo”) are collectively referred to as the Group. The Group’s consolidated financial statements for the periods presented have been prepared by including the financial statements of the Company and its subsidiaries. The Company was incorporated on November 22, 2007 in the Cayman Islands. Chongqing Daqo and Xinjiang Daqo were incorporated by the Company on January 14, 2008 and February 22, 2011, respectively, in the Peoples’ Republic of China (“PRC”). The Group manufactured and sold polysilicon and wafers through Chongqing Daqo and Xinjiang Daqo. In August 2015, Xinjiang Daqo issued stock representing 1 100 2.5

SUMMARY OF PRINCIPAL ACCOUNTING

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract]
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES	2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES The consolidated financial statements of the Group have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. 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. As of December 31, 2016, the Group’s current liabilities exceed its current assets by $ 176.4 0.3 16.0 106.0 4.7 Such negative working capital and adverse current ratio may raise substantial doubt about the Group’s ability to continue as a going concern, which indicates that it is probable that the Group will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. However, the management has evaluated the significance of the conditions and regards the going concern assumption as appropriate based on the following considerations: 1. The Group generated net income and positive cash flow from operations for three consecutive years with a net operating cash inflow of $ 99 2. With the completion of the polysilicon Phase 3A expansion project in Xinjiang, the nameplate capacity of polysilicon increased by 48 3. The Group has completed a series of cost reduction activities such as technology improvement. 4. The Group has performed a review of its cash flow forecasts for the twelve month period after the date that the financial statements are issued and believes that its operating cash flow will be positive. Furthermore, the management also has plans to alleviate substantial doubt about its ability to continue as a going concern: 1. On March 21, 2017, the Group obtained a letter of financial support from Daqo Group which has committed to provide sufficient financial support to the Group to ensure the Group has the funds required to satisfy its obligations as they come due in the normal course during the twelve months after the date that the financial statements are issued. Further, the support letter provides that Daqo Group will not require the Group to pay the amount owed to the Daqo Group and subsidiaries of Daqo Group before twelve months after the date that the financial statements are issued. 2. 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 of the loans and believes the Group will continue to be able to do so. Based on the above factors and plans, 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 during the twelve month period after the date that the financial statements are issued. The consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated on consolidation. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these 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. Management has made significant estimates in a variety of areas, including but not limited to allowance for doubtful accounts, useful lives and residual values of long-lived assets, impairment for long lived assets, valuation allowances for deferred tax assets, interest capitalization and certain assumptions used in the computation of share-based compensation and related forfeiture rates. Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and notes receivable. The Group places its cash and cash equivalents in various financial institutions in the PRC. The Group believes that no significant credit risk exists as these banks are principally government-owned financial institutions with high credit ratings. Accounts receivable represent those receivables derived in the ordinary course of business. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts mainly based on aging of the receivables and other factors surrounding the credit risk of specific customers. Allowance for doubtful accounts is $ 1,087,465 10,163 Accounts December 31, receivable 2015 2016 Customer A $ * $ 1,576,400 Customer B $ * $ 1,368,956 Customer C $ 2,996,042 $ 1,294,342 Customer D $ 6,354,510 $ * Customer F $ 2,315,035 $ * Customer G $ 2,299,732 $ * * Represents less than 10% From time to time, certain accounts receivable balances are settled in the form of notes receivable. As of December 31, 2015 and 2016, notes receivable represents bank acceptance drafts that are non-interest bearing and due within 6 months. Furthermore, all of the Group's long-term bank borrowings are guaranteed by Daqo Group, our related party, who has also committed to provide financial support to meet the Group's short term bank borrowings obligations, other liabilities and commitments as they become due (see Note 2(a)). The Group's access to credit is significantly reliant on Daqo Group's ability and willingness to continue to provide sufficient financial support. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased. Restricted cash of $ 19,062,714 15,893,467 The Group determines its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of trade receivables. In determining its allowance for doubtful accounts, the Group also considers other economic factors, such as aging trends. The Group believes that its process of specific review of customers combined with overall analytical review provides an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts are recorded as general and administrate expense in the consolidated statements of operations. Inventories are stated at lower of cost or net realizable value. Costs are determined using weighted average costs. Costs comprise direct materials, direct labor and overhead costs incurred in bringing the inventories to their present location and condition. The Group writes down the cost of excess inventories to the estimated market value based on historical and forecasted demand. Estimated net realizable value is measured as the estimated selling price of each class of inventory in the ordinary course of business less estimated costs of completion and disposal. The charges to inventory for the years ended December 31, 2014, 2015 and 2016 were $ 175,568 62,422 The Group has outsourced portions of its manufacturing process, including cutting ingots into wafers, and converting wafers into solar cells, to various third-party manufacturers. These outsourcing arrangements may or may not include transfer of title of the raw material inventory (ingots, wafers or cells) to the third-party manufacturers. For those outsourcing arrangements in which title does not transfer, the Group maintains the inventory in the balance sheet as raw materials inventory while it is in physical possession of the third-party manufacturers. Upon receipt of the processed inventory from the third-party manufacturers, it is reclassified to work-in-progress inventory with the processing fee capitalized as cost of inventory. For those outsourcing arrangements in which title (including risk of loss) does transfer to the third-party manufacturer, the Group is contractually obligated to repurchase the processed inventory. To accomplish this, it enters into raw material sales agreements and processed inventory purchase agreements simultaneously with the third-party manufacturer. In such instances, where they are, in substance tolling arrangements, the Group retains the inventory in the consolidated balance sheets while it is in the physical possession of the third-party manufacturer. The cash received from the third-party manufacturer is recorded as a current liability on the balance sheet rather than revenue or deferred revenue. Upon receipt of the processed inventory, it is reclassified from raw materials to work-in-progress inventory and the processing fee paid to the third-party manufacturer is added to inventory cost. Cash payments for outsourcing arrangements which require prepayment for repurchase of the processed inventory are classified as current assets on the balance sheet. If there is no legal right of offset established by these arrangements, the associated assets and liabilities are presented separately on the balance sheet until the processed inventory is returned to the Group. Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the following estimated useful lives: Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6 The Group reassesses the reasonableness of the estimates of useful lives and residual values of long-lived assets when events or changes in circumstances indicate that the useful lives and residual values of a major asset or a major category of assets may not be reasonable. Factors that the Group considers in deciding when to perform an analysis of useful lives and residual values of long-lived assets include, but are not limited to, significant variance of a business or product line in relation to expectations, significant deviation from industry or economic trends, and significant changes or planned changes in the use of the assets. The analysis will be performed at the asset or asset category with the reference to the assets’ conditions, current technologies, market, and future plan of usage and the useful lives of major competitors. Costs incurred on construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Interest expense incurred for construction of property, plant, and equipment is capitalized as part of the cost of such assets. The Group capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. Interest expense capitalized for the years ended December 31, 2014, 2015 and 2016 was $ 1,960,259 2,825,879 1,757,547 All land in the PRC is owned by the PRC government. The PRC government, according to PRC law, may sell the land use rights for a specified period of time. The Group’s land use rights in the PRC are stated at cost less recognized lease expenses. Lease expense is recognized over the term of the agreement on a straight-line basis. The Group recorded lease expenses of $ 628,052 595,716 557,162 The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors that the Group considers in deciding when to perform an impairment review include, but are not limited to significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planed changes in the use of the assets. An impairment analysis is performed at the lowest level of identifiable independent cash flows for an asset or asset group. The Group makes subjective judgments in determining the independent cash flows that can be related to a specific asset group based on the asset usage model and manufacturing capabilities. The Group measures the recoverability of assets that will continue to be used in the operations by comparing the carrying value of the asset group to the estimate of the related total future undiscounted cash flows. If an asset group’s carrying value is not recoverable through the related undiscounted cash flows, the impairment loss is measured by comparing the difference between the asset group’s carrying value and its fair value. The Group determines the fair value of an asset or asset group utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. 1,622,588 198,689 1.6 0.2 Product sales The Group recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of the sales contracts transfer title and risk of loss to customers upon receipt. Sales agreements for polysilicon and wafers typically do not contain product warranties except for return and replacement of defective products within a period generally ranging from 3 to 30 days from delivery. Sales agreements typically do not contain post-shipment obligations or other return or credit provisions. Customers frequently pay for products prior to the delivery of the products. Advance payments are recorded as advances from customers. Service revenue The Group also provides OEM services to customers, such as the provision of service to process polysilicon into ingots and wafers. The Group recognizes revenue when there is persuasive evidence of an arrangement, the service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Cost of revenues consists of production related costs including costs of silicon raw materials, electricity and other utilities, consumables, direct labor, overhead costs, depreciation of property, plant and equipment, and manufacturing waste treatment processing fees. Cost of revenues does not include shipping and handling expenses, therefore the Group's cost of revenues may not be comparable to other companies which include such expenses in their cost of revenues. Costs to ship products to customers are recorded as selling expenses in the consolidated statements of operations. Costs to ship products to customers were $ 2,054,786 2,708,962 3,147,594 Research and development expenses include materials and utilities consumed in research and development activities, payroll and related costs and depreciation of property and equipment associated with the research and development activities, which are expensed when incurred. In the years ended December 31, 2015 and 2016, the Group incurred additional research and development expenses for its Xinjiang Phase II polysilicon facilities to achieve the targets for quality, capacity and cost during the pilot production period. The Group receives unrestricted cash subsidies from local government agencies. The government agencies, at their discretion, determine the amount of the subsidies with reference to fixed assets and land use right payments, value-added tax and income taxes paid, bank loan interest expenses paid or electricity consumed by the Group; however, these subsidies do not represent tax refunds or reimbursements of expenditures. The subsidies are unrestricted as to use and can be utilized by the Group in any manner it deems appropriate. The Group has utilized, and expects to continue to utilize, these subsidies to fund general operating expenses. The Group records unrestricted cash government subsidies as other operating income in the consolidated statements of operations. Unrestricted cash government subsidies received for the years ended December 31, 2014, 2015 and 2016 were $ 926,173 3,578,865 4,742,635 113,735 690,889 323,769 Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amount in the consolidated 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change. The Group recognizes share-based compensation in the consolidated statements of operations based on the fair value of equity awards on the date of the grant, with compensation expense recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. The fair value of share options is determined using the Black-Scholes valuation model and the fair value of restricted share units ("RSUs") is determined with reference to the fair value of the underlying shares. The Group has made an estimate of expected forfeiture and is recognizing compensation costs only for those equity awards expected to vest. The share-based compensation expenses have been categorized as either selling, general and administrative expenses, research and development expenses or cost of sales, depending on the job functions of the grantees. For the years ended December 31, 2014, 2015 and 2016, the Group recognized share-based compensation expense of $1,792,819, $3,687,951 and $2,702,089, respectively, which was classified as follows: Year ended December 31, 2014 2015 2016 Selling, general and administrative expenses $ 1,544,078 $ 3,323,948 $ 2,501,957 Research and development expenses 12,310 — — Cost of sales 236,431 364,003 200,132 Total $ 1,792,819 $ 3,687,951 $ 2,702,089 Basic earnings per ordinary share are computed by dividing the net income attributable to ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the year. Diluted earnings per share is computed using the treasury stock method. The reporting currency of the Company is the United States dollar (“U.S. dollar”). The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in other currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange in effect at the balance sheet dates. Transactions dominated in currencies other than the U.S. dollar during the year are converted into U.S. dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in the statements of operations. The financial records of the Company’s PRC subsidiaries are maintained in Chinese Renminbi (“RMB”), which is their functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated at average rate of exchange prevailing during the periods presented. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statement of changes in equity and comprehensive income. The RMB is not a freely convertible currency. The State Administration for Foreign Exchange of People’s Republic of China, 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 $ 30,891,550 28,839,371 The Group estimates fair value of financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The fair value measurement guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. · 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 to price an asset or liability. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group’s consolidated assets, liabilities, shareholders’ equity and net income or loss. The Group’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, note receivables other current assets, amount due from related parties, accounts payable, other current liabilities, payables for purchase of property, plant and equipment, amounts due to related parties and short-term and current portion of long-term bank borrowings. The carrying amounts of these short-term financial instruments approximate their fair values due to the short-term maturity of these instruments. The fair value of the Group’s long-term bank borrowings as of December 31, 2015 and 2016 is estimated by discounted cash flow technique using an interest rate corresponding to debt with similar maturities and risks on the measurement date. The long-term bank borrowings approximate their fair values because market interest rates have no fluctuated significantly since the contract signed. The Group classified the ownership interest in the consolidated entity held by a party other than the Group to noncontrolling interest in the consolidated financial statements. It also reported the consolidated net income at amounts that include the amounts attributable to both the parent and the noncontrolling interest on the face of the Consolidated Statements of Operations. Xinjiang Daqo Investment's equity interests in Xinjiang Daqo are presented as a noncontrolling interest as of December 31, 2015. The non-controlling interest was $ 1,302,027 1,629,161 On July 9, 2012, the Company's Board of Directors authorized the Company to repurchase up to $ 5 2,356,900 1,350,164 On February 17, 2016, Xinjiang Daqo entered into an agreement to invest in Syned Fire Safety Service Co., Ltd.(“Syned Fire Safety Services”), a company engaging in fire safety activities. Pursuant to the agreement, Xinjiang Daqo contributed a capital investment of $ 581,581 4,038,900 15.29 The Group reviews its investment in Syed Fire Safety Service to determine whether a decline in fair value below the carrying value, if any, is other- than-temporary. No impairment loss occurred during the year ended December 31, 2016. Although assumptions used in estimates of fair value of the investment in Syed Fire Safety Service are management best estimates, such assumptions are, by nature, highly judgmental and may vary significantly from actual results. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern, which requires management of public and private companies to evaluate whether there is 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. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The new standard is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The Group has adopted ASU 2014-15, assessed its ability to continue as a going concern and concluded that substantial doubt about its ability to continue as a going concern does not exist. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which simplifies the presentation of deferred taxes on the balance sheet by requiring classification of all deferred tax items as noncurrent including valuation allowances by jurisdiction. The ASU is effective for public entities for annual and interim periods beginning after December 15, 2016, and interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Group adopted the ASU and has already considered the impact on its consolidated financial statements and related disclosures as of December 31, 2016 and the effect is not material. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. The core principle of the new guidance is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple element arrangements. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company must adopt ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the "new revenue standards"). The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The new revenue standards become effective for the Company on January 1, 2018. The Company currently anticipates adopting the new revenue standards using the full retrospective method. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330), which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Group will adopt this ASU on its effective date of January 1, 2017 and is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within that reporting period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lessees to recognize right-of-use assets and liabilities for operating leases, initially measured at the present value of the lease payments, on the balance sheet. In addition, it requires lessees to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This ASU will become effective for the Company in the first quarter of fiscal year 2019, and requires adoption using a modified retrospective approach. The Group is in the process of evaluating the impact on its consolidated financial statements, as well as the impact of adoption on policies, practices and systems. As of December 31, 2016, the Group has $ 2.9 In March 2016,

EXIT and DISPOSAL ACTIVITIES

EXIT and DISPOSAL ACTIVITIES	12 Months Ended
	Dec. 31, 2016
EXIT and DISPOSAL ACTIVITIES [Abstract]
EXIT and DISPOSAL ACTIVITIES	3. EXIT and DISPOSAL ACTIVITIES Relocation of Polysilicon Operations to Xinjiang Starting 2013, the Group commenced a plan to expand the capacity at the Xinjiang plant and relocate significant production assets, with a carrying value of $ 144.7 In August 2014, the Board of Directors approved the Company to launch an early stage research for the Polysilicon Phase III Expansion Project in Xinjiang. After a comprehensive analysis of the capacity and comparability of the Chongqing machinery and equipment, the Company concluded that it would be more efficient to use part of the machinery and equipment in Phrase III, rather than using all of them in Phrase II Expansion Project. As a result, the Company has changed its original relocation plan and determined to utilize a portion of these equipment and machinery in Polysilicon Phase III Expansion Project in Xinjiang. As of December 31, 2014, about $ 46.1 286.4 116.1 720.5 70.0 434.1 During the year ended December 31, 2014, additional $ 0.8 In November 2015, the Group together with a professional transport company reviewed all the remaining assets for the relocation preparation under the Phase III Expansion Project. Along with the complicated and comprehensive relocation preparation, the Group identified assets of $ 1.6 1.6 1.1 7.0 0.3 0.2 0.1 0.1 During the year ended December 31, 2016, the Company relocated additional machinery and equipment of $ 34.1 236.7 15.7 109.0 Along with the complicated and comprehensive relocation preparation, the Group identified assets of $ 0.2 0.2 During the year ended December 31, 2016, additional $ 2.6 1.1

FOLLOW-ON EQUITY OFFERINGS

FOLLOW-ON EQUITY OFFERINGS	12 Months Ended
	Dec. 31, 2016
FOLLOW-ON EQUITY OFFERING [Abstract]
FOLLOW-ON EQUITY OFFERINGS	4. FOLLOW-ON EQUITY OFFERINGS In May 2014, the Company issued and sold 2,000,000 50,000,000 3.4 54.6 In February 2015, the Company issued 1,540,000 38,500,000 2.0 28.0

ALLOWANCES FOR DOUBTFUL RECEIVA

ALLOWANCES FOR DOUBTFUL RECEIVABLES	12 Months Ended
	Dec. 31, 2016
ALLOWANCES FOR DOUBTFUL RECEIVABLES [Abstract]
ALLOWANCES FOR DOUBTFUL RECEIVABLES	5. ALLOWANCES FOR DOUBTFUL RECEIVABLES Along with the recovery of solar industry and continued legal actions, the Group was able to collect payments on these receivable, as such, allowance of $ 3,823,744 2,026,567 1,053,041 Analysis of allowances for accounts receivable is as follows: Year ended December 31, 2014 2015 2016 Beginning of the year $ 7,160,782 $ 3,189,110 $ 1,087,465 Reversal during the year (3,823,744) (2,026,567) (1,053,041) Foreign exchange effect (147,928) (75,078) (24,261) Closing balance $ 3,189,110 $ 1,087,465 $ 10,163

PREPAID EXPENSE AND OTHER CURRE

PREPAID EXPENSE AND OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2016
PREPAID EXPENSE AND OTHER CURRENT ASSETS [Abstract]
PREPAID EXPENSE AND OTHER CURRENT ASSETS	6. PREPAID EXPENSE AND OTHER CURRENT ASSETS Prepaid expense and other current assets consist of the following: December 31, 2015 2016 Spare parts $ 6,052,315 $ 5,732,914 Prepaid Value added tax (“VAT”) 5,552,772 1,808,141 Prepaid insurance fee 347,631 259,650 Others 282,423 226,962 Total $ 12,235,141 $ 8,027,667

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2016
INVENTORIES [Abstract]
INVENTORIES	7. INVENTORIES Inventories consist of the following: December 31, 2015 2016 Raw materials $ 2,343,104 $ 2,947,296 Work-in-process 5,626,531 4,878,905 Finished goods 2,746,304 4,454,499 Total $ 10,715,939 $ 12,280,700 Inventory write-down was $ 175,568 62,422

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consist of the following: December 31, 2015 2016 Cost Buildings and plant $ 313,290,516 $ 286,302,082 Machinery and equipment 389,373,554 371,703,665 Furniture, fixtures and equipment 22,418,768 21,355,517 Motor vehicles 293,331 334,025 Less: Accumulated depreciation (188,680,279) (206,725,215) Property, plant and equipment, net $ 536,695,889 $ 472,970,074 Construction in process 7,630,236 84,457,810 Total $ 544,326,125 $ 557,427,884 Depreciation expense was $ 28,007,943 31,361,026 33,822,082 $ 84.5 The Company recognized impairments for long-lived assets of $nil, $ 1,622,588 198,689

BORROWINGS

BORROWINGS	12 Months Ended
	Dec. 31, 2016
BORROWINGS [Abstract]
BORROWINGS	9. BORROWINGS The Group’s bank borrowings consisted of the following: December 31, 2015 2016 Short-term bank borrowings $ 72,360,730 $ 55,582,070 Long-term bank borrowings, current portion 51,576,265 50,398,250 Total borrowings, current 123,936,995 105,980,320 Long-term bank borrowings, non-current portion 118,548,430 111,948,913 Total $ 242,485,425 $ 217,929,233 Short-term bank borrowings The Group’s short-term bank borrowing consisted of the following: December 31, 2015 2016 Short-term borrowings 72,360,730 55,582,070 Total $ 72,360,730 $ 55,582,070 These short-term borrowings are guaranteed by Daqo Group and its related parties. The weight average interest rate on the short-term bank borrowing was 5.4 5.0 Long-term bank borrowings The long-term bank borrowings, including current portion, as of December 31, 2015 and 2016 are comprised of: December 31, 2015 2016 Borrowing from Huaxia Bank 3,079,180 — Borrowing from Bank of China 70,821,140 33,118,850 Borrowing from Chongqing Rural Commercial Bank 96,224,375 129,228,313 Total $ 170,124,695 $ 162,347,163 On September 28, 2011, Chongqing Daqo entered into a four-year credit facility agreement with Huaxia Bank with maximum amount of $ 57.6 400 57.6 400 21.6 150 36.0 250 54.6 380 3.0 20 3.0 20 On September 30, 2011, Xinjiang Daqo entered into a six-year long term facility agreement with Bank of China. Such borrowing is restricted to the purchase of fixed assets and has a maximum borrowing credit amounted to $ 108.0 750 5 63.3 108.0 750 5.39 37.2 290 70.8 460 37.7 230 33.1 230 On June 25, 2015, Xinjiang Daqo entered into a six-year long term facility agreement with Chongqing Rural Commercial Bank. Such borrowing is restricted to renovation and extension project of polysilicon and has a maximum borrowing credit amounted to $ 96.2 625 20 96.2 625 5.9 18.5 85 77.7 540 On May 30, 2016, Xinjiang Daqo entered into a seven-year long term facility agreement with Chongqing Rural Commercial Bank. Such borrowing is restricted to extension project of polysilicon Phase 3A and has a maximum credit amounted to $ 72.0 500 20 51.5 357.5 5.9 51.5 357.5 20.5 142.6 The weighted average interest rate as of December 31, 2015 and 2016 for the Group’s long-term bank borrowings was 5.7 5.8 The principal maturities of these long-term bank borrowings as of December 31, 2016 are as follows: December 31, 2016 Amount 2017 $ 50,398,250 2018 25,003,292 2019 27,577,922 2020 27,577,922 2021 18,938,223 2022 10,298,523 2023 2,553,031 Total $ 162,347,163

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 31, 2015 2016 Accrued payroll and welfare $ 3,524,876 $ 3,798,472 Accrued professional fees 776,518 374,944 Other tax payables 2,298,780 1,802,962 Interest payable 38,054 390,467 Others 1,978,603 1,953,196 Total $ 8,616,831 $ 8,320,041

ADVANCES FROM CUSTOMERS

ADVANCES FROM CUSTOMERS	12 Months Ended
	Dec. 31, 2016
ADVANCES FROM CUSTOMERS [Abstract]
ADVANCES FROM CUSTOMERS	11. ADVANCES FROM CUSTOMERS Advances from customers represent prepayments from customers and are recognized as revenue in accordance with the Group’s revenue recognition policy. Advances from customers consist of the following and is analyzed as long term and short term portion respectively: December 31, 2015 2016 Customer F $ — $ 3,035,415 Customer G — 1,608,539 Customer H 3,237,308 — Customer I 1,517,402 — Customer J 1,539,590 1,343,600 Others 1,889,076 1,532,051 Total $ 8,183,376 $ 7,519,605

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	Nonrecurring Fair Value Measurements Year ended December 31, 2015 Quoted Prices in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Description amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Total Losses Property, plant and equipment – cannot be relocated to Xinjiang plant (Note 3) $ 1,622,588 $ $ $ — $ 1,622,588 Year ended December 31, 2016 Description Carrying Quoted Prices in Significant Significant Total Losses Property, plant and equipment – cannot be relocated to Xinjiang plant (Note 3) $ 198,689 $ $ $ — $ 198,689 There were no assets and liabilities that were measured at fair value on a non-recurring basis after its initial recognition for the year ended December 31, 2014.

MAINLAND CHINA CONTRIBUTION PLA

MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION	12 Months Ended
	Dec. 31, 2016
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION [Abstract]
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION	13. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION (a) China Contribution Plan Full time employees of the Group in the PRC participate in a government-mandated, multi-employer, 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 a certain percentage of the employees’ salaries. Contributions to defined contribution plans are expensed as incurred. During the years ended December 31, 2014, 2015 and 2016, the Group recognized expenses relating to its contribution to the government sponsored defined contribution plans of $ 3,130,308 4,087,334 3,147,927 (b) Statutory Reserves and Restricted Assets Foreign invested enterprises in PRC are required under PRC laws to distribute its after-tax profits of the current year and draw 10 percent of the profits as the company's statutory common reserve. The company may stop drawing the profits if the aggregate balance of the common reserves has already accounted for over 50 percent of the company's registered capital. The common reserves shall be used for making up losses, expanding the production and business scale or increasing the registered capital of the company. As of December 31, 2014, 2015 and 2016, the Group's aggregate balance of the statutory common reserves was $ 20,190,729 17,720,748 21,969,950 In accordance with relevant PRC laws and regulations, the Group’s PRC subsidiaries are prohibited to make distribution of their registered capital and statutory reserves in the form of cash dividends, loans or advances and the relating restricted portion amounted to $ 218,043,299

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	14. INCOME TAXES Cayman Islands Tax The Company is incorporated in the Cayman Islands and is not subject to tax in this jurisdiction. PRC Tax The Company’s subsidiaries are registered in the PRC as foreign invested enterprises. Under the Laws of the People’s Republic of China on Enterprise Income Tax (the “EIT Law”) which are effective January 1, 2008, the statutory enterprise income tax rate is 25 Chongqing Daqo is a foreign invested enterprise located in Chongqing. In accordance with a PRC tax regulation which encourages investment in China’s southwest region, Chongqing Daqo is entitled to a preferential tax rate of 15% from its establishment through 2012. On November 19, 2012, Chongqing Daqo obtained a High and New Technology Enterprise (“HTNE”) certificate for a valid period of 3 years till 2014. On November 10, 2015, Chongqing Daqo renewed the HTNE certificate for a valid period of 3 years till 2018. During the years ended December 31, 2015 and 2016, Chongqing Daqo was entitled to a preferential tax rate of 15 Xinjiang Daqo is a foreign-invested enterprise established on February, 2012 located in Shihezi Economic Development Area in Xinjiang Autonomous Region. The entity was subject to an income tax rate of 25 15 Under the current EIT Law and implementation regulations issued by the PRC State Council, an income tax rate of 10 Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25%. The Group is not subject to any other uncertain tax position. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 Income tax expenses comprise: Year ended December 31, 2014 2015 2016 Current Tax Expenses $ — $ 1,786,092 $ 7,357,623 Deferred Tax Expenses (Benefit) — (648,271) 466 Total $ — $ 1,137,821 $ 7,358,089 The principal components of deferred income tax assets and liabilities are as follows: December 31, 2015 2016 Net operating loss carried forward $ 22,549,975 $ 20,039,534 Bad debt provision 163,120 1,524 Government grants related to assets 166,922 217,661 Long-lived asset impairment&depreciation 19,624,021 18,113,967 Others 485,776 942,466 Sub-total 42,989,814 39,315,152 Valuation Allowance (42,362,849) (38,729,208) Total $ 626,965 $ 585,944 The changes of valuation allowance are as follows: Year ended December 31, 2014 2015 2016 Beginning balance $ 56,633,867 $ 50,109,751 $ 42,362,849 Reversal (5,168,917) (5,708,268) (932,833) Foreign exchange effect (1,355,199) (2,038,634) (2,700,808) Ending Balance $ 50,109,751 $ 42,362,849 $ 38,729,208 The Group uses the asset and liability method to record related deferred tax assets and liabilities. The Group considers positive and negative evidences to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgement and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided a full valuation allowance for the deferred tax assets relating to Chongqing Daqo as of December 31, 2015 and December 31, 2016 in the amount of $ 42,362,849 38,729,208 80.2 The effective income tax rate of the Group is different from the expected PRC statutory rate as a result of the following items: Year ended December 31, 2014 2015 2016 PRC Enterprise Income Tax 25 % 25 % 25 % Preferential income tax rate of a subsidiary (9) % (8) % (10) % Effect of different reversal rate 1 % — % — % Additional tax deductions (8) % (12) % (1) % Different tax rate in other jurisdictions 6 % 8 % 1 % Changes in valuation allowance — % (3) % (1) % Tax credits (15) % (3) % — % Withhold tax — % 1 % — % Effective tax rate — % 8 % 14 % Xinjiang Daqo and Chongqing Daqo enjoy the preferential tax rate of 15%, which may be extended if the requirements of High and New Technology Enterprise are satisfied. The impact of the preferential tax rates decreased income taxes by $ 3.0 1.2 5.2 0.01 0.01 0.02

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
SHARE BASED COMPENSATION [Abstract]
SHARE BASED COMPENSATION	15. SHARE BASED COMPENSATION In December 2014, The Company’s shareholders adopted the 2014 share incentive plan. The Company’s shareholders have authorized the issuance of up to 21,000,000 During the years ended December 31, 2014 and 2015, the Company granted 6,274,166 8,134,375 The Company utilized the Binomial option pricing model to evaluate the fair value of the stock options with reference to the closing price of the Company on the measurement dates. The following assumptions were used in the Binomial option pricing model: Year Ended December 31, 2014 Average Post- risk-free vesting Options rate of Exercise Volatility Dividend forfeiture granted return multiple rate yield rate January 28, 2014 2.77% 3.0-3.5 times 93.0% 0% 3-9.5% Year Ended December 31, 2015 Average Post- risk-free vesting Options rate of Exercise Volatility Dividend forfeiture granted return multiple rate yield rate January 12, 2015 2.82% 1.8-3 times 93.0% 0% 5%-8% July 06, 2015 3.20% 3 times 91.0% 0% 5% September 09, 2015 2.94%-3.08% 1.8-3 times 91.0%-92.0% 0% 5%-8% The risk-free rate of return is based on the yield curve of China USD sovereign bond commensurate with the same maturity at the respective grant dates. The exercise multiple is estimated by reference to the proprietary research and empirical studies. The expected volatility is based on the average of historical daily annualized share price volatility of 6 comparable companies over a normalized period that commensurate with the option life of 10 years. The post-vesting forfeiture rate is based on the historical data and management’s best Estimation. A summary of the aggregate option activity and information regarding options outstanding as of December 31, 2016 is as follows: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contract Life Value Options outstanding on January 1, 2016 17,528,541 0.50 Granted — — Forfeited (147,235) 0.59 Expired (2,465) 0.15 Exercised (2,119,700) 0.50 Options outstanding on December 31, 2016 15,259,141 0.50 6.46 4,304,907 Options vested or expected to vest on December 31, 2016 17,037,682 0.44 5.79 5,691,147 Options exercisable on December 31, 2016 11,902,422 0.47 6.05 3,691,299 The share-based compensation expenses related to share options of approximately $ 1,792,819 3,687,951 2,702,089 The weighted average grant date fair value of options granted during the year ended December 31, 2014, and 2015 was $ 0.98 0.59 As of December 31, 2016, there was $ 2,268,104 1.75

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND BALANCES	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract]
RELATED PARTY TRANSACTIONS AND BALANCES	16. RELATED PARTY TRANSACTIONS AND BALANCES (1) The relationships between the Group and related party are as follows: Name of the related party Relationship Daqo Group Co., Ltd. (“Daqo Group”) Daqo Group and the Group are controlled by same group of shareholders. Zhenjiang Daqo Solar Co. Ltd. (“Zhenjiang Daqo”) An affiliated company which is 100 Daqo Solar Co. Ltd (“Daqo Solar”) An affiliated company which is 100 Nanjing Daqo New Energy Co., Ltd. (“Nanjing Daqo”) An affiliated company which was 100 100 Daqo Xinjiang Investment Co., Ltd. ("Xinjiang Daqo Investment") An affiliated company which is 100 Daqo New Material Co., Ltd. ("Daqo New Material") An affiliated company which is 100 Group, and was consolidated by the Company as VIE on December 31, 2013 Chongqing Daqo Tailai Electric Co., Ltd. (“Chongqing Daqo Tailai”) An affiliated company which is 100 Nanjing Daqo Transformer Systems Co., Ltd. (“Nanjing Daqo Transformer”) An affiliated company which is 100 Jiangsu Daqo Changjiang Electric Co., Ltd. (“Jiangsu Daqo”) An affiliated company which is 100 Nanjing Daqo Electric Co., Ltd. (“Nanjing Daqo Electric”) An affiliated company which is 100 Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd. (“Zhenjiang Moeller”) An affiliated company which is 100 Nanjing Intelligent Apparatus Co., Ltd. (“Intelligent Apparatus”) An affiliated company which is 100 Nanjing Intelligent Software Co., Ltd. (“Intelligent Software”) An affiliated company which is 100 Daqo Investment Co., Ltd. (“Daqo Investment”) An affiliated company which is 100 Shanghai Sailfar Electric Technology Co., Ltd. (“Daqo Sailfar”) An affiliated company which is 100 Jiangsu Daquan High Voltage Switchgear Co., Ltd.( “Jiangsu Daquan High Voltage”) An affiliated company which is 75 Jiangsu Daqo Kai-fan Electric Co., Ltd. ( “Jiangsu Daqo Kai-fan”) An affiliated company which is 100 Zhenjiang Electric Equipment Co., Ltd. ( “Zhenjiang Electric”) An affiliated company which is 100 Jiangsu Daqo ETE Electronic Systerm Co., Ltd.(“Jiangsu Daqo ETE Electronic”) An affiliated company which is 75 Jiangsu Daquan Kai-fan Switchgear Co., Ltd (“Jiangsu Daquan Kai-fan Switchgear”) An affiliated company which is 100 (2) Related party balances: The balances due from related parties mainly included the amount due from Zhenjiang Daqo for sales of wafer and polysilicon. The balances are as follows: December 31, 2015 2016 Amounts due from related parties Zhenjiang Daqo $ 229,989 $ 1,449,824 Others 54,644 78,888 Total $ 284,633 $ 1,528,712 The balances due to related parties mainly included payables to Chongqing Daqo Tailai and Nanjing Daqo Transformer for purchases of machines for polysilicon expansion, payables to Daqo Solar, Xinjiang Daqo Investment and Daqo New Material for interest free loans, and interest bearing loan from Daqo Group with an interest rate of 5.7 The balances are payable on demand and are as follows: December 31, 2015 2016 Amounts due to related parties Daqo Group $ 33,758 $ 15,076,133 Daqo New Material 5,563,165 8,323,271 Xinjiang Daqo investment 3,146,054 79,197 Daqo Solar 37,390,575 — Chongqing Daqo Tailai 144,102 2,107,488 Nanjing Daqo Transformer — 1,022,075 Others* 118,873 221,441 Total $ 46,396,527 $ 26,829,605 * The remaining balance of amounts due to related parties of $ 221,441 37,679 85,332 9,804 88,626 The transactions with Daqo Group and its subsidiaries were as follows: Transaction Year Ended December 31, Name of Related parties Nature 2014 2015 2016 Daqo Group Purchase-Fixed asset 486,948 — — Proceeds from interest free loans 10,821,462 15,043,550 — Repayment of interest free loans 8,115,813 20,217,257 10,974,807 Repayment of interest bearing loan — — 15,059,000 Interest charged — — 850,380 Rental expense — — 27,997 Zhenjiang Daqo Sales 9,554,320 11,111,239 11,194,197 Daqo Solar Sales 9,595,680 783,705 — Proceeds from interest free loans 157,241,390 127,060,826 60,300,896 Repayment of interest free loans 166,231,092 151,990,672 68,766,506 Nanjing Daqo Proceeds from interest free loans 973,898 13,456,861 — Repayment of interest free loans 2,921,693 13,456,861 — Xinjiang Daqo Investment Proceeds from interest free loans 98,367,234 72,946,700 56,270,085 Repayment of interest free loans 93,219,846 73,252,506 38,715,449 Daqo New Material Proceeds from interest free loans 7,729,501 11,082,241 9,607,344 Repayment of interest free loans 4,600,117 11,285,114 12,262,592 Rental expense 1,071,287 1,050,661 993,894 Chongqing Daqo Tailai Purchase-Fixed asset 2,724,790 375,528 3,534,248 Purchase-Raw material — 9,938 — Income from disposal of fixed assets — 6,458 — Proceeds from interest free loans — 6,367,640 222,517 Repayment of interest free loans — 6,367,640 2,684,783 Others subsidiaries under Daqo Group Proceeds from interest free loans 636 — — Repayment of interest free loans — 5,296 — Purchase-Fixed asset* 3,989,686 3,488,330 2,120,768 Purchase-Raw material — 22,817 129,219 Total Sales $ 19,150,000 $ 11,894,944 $ 11,194,197 Income from disposal of fixed assets $ — $ 6,458 $ — Purchase-Fixed asset $ 7,201,424 $ 3,863,858 $ 5,655,016 Purchase-Raw material $ — $ 32,755 $ 129,219 Rental expense $ 1,071,287 $ 1,050,661 $ 1,021,891 Interest expense $ — $ — 850,380 Proceeds from related parties loans $ 275,134,122 $ 245,957,818 $ 126,400,842 Repayment of related parties loans $ 275,088,560 $ 276,575,346 $ 148,463,137 *The purchases of fixed assets of $2,120,768 were comprised of purchases from Nanjing Daqo Transformer, Zhenjiang Moeller, Jiangsu Daqo, Intelligent Apparatus and Jiangsu Daqo ETE Electronic in the amount of $ 1,410,655 236,415 336,791 93,841 43,066

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	17. EARNINGS PER SHARE The calculation of earnings per share is as follows: Year ended December 31, 2014 2015 2016 Numerator used in basic and diluted earnings per share: Net income attributable to Daqo New Energy Corp. ordinary shareholders—basic and diluted $ 16,649,176 $ 12,956,889 $ 43,493,756 Denominator used in basic and diluted earnings per share: Weighted average number of ordinary shares outstanding used in computing earnings per share-basic 206,349,976 258,015,851 261,742,244 Plus: share options 5,003,667 3,396,082 3,075,511 Weighted average number of ordinary shares outstanding used in computing earnings per share—diluted 211,353,643 261,411,933 264,817,755 NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Basic $ 0.08 $ 0.05 $ 0.17 NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Diluted $ 0.08 0.05 0.16 Outstanding share options totaling of 6,154,166 12,563,541 10,899,141

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	18. COMMITMENTS AND CONTINGENCIES Capital commitments As of December 31, 2016, commitments outstanding for the purchases of property, plant and equipment approximated $ 4.7 Lease commitments The operating lease commitments as of December 31, 2016 were principally for the housing rental from Daqo New Material and Daqo Group. The lease expense was $ 1,071,287 1,050,661 1,024,970 Year ending December 31 2017 $ 991,142 2018 $ 991,142 2019 $ 961,538 Total $ 2,943,822

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2016
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	19. 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. Following the further expansion of module business and entering into the wafer business in 2011, the Group operated and viewed its performance in three segments. However, on September 28, 2012, the module business was disposed. Therefore, only two segments remained in 2014, 2015 and 2016. Furthermore, the Group's chief operating decision maker is not provided with asset information by segment. As such, no asset information by segment is presented. The following tables summarized the Group’s revenue and cost generated from different revenue streams. Substantially all of its revenues are derived in the PRC. The Group’s long lived assets and operations are substantially all located in the PRC. Year ended December 31, 2014 Polysilicon Wafer Elimination Total Revenue – External $ 127,692,325 54,879,527 - 182,571,852 Revenue - Intersegment 29,424,883 - (29,424,883) - Total revenue 157,117,208 54,879,527 (29,424,883) 182,571,852 Total Cost of revenue 119,703,550 47,861,811 (28,256,850) 139,308,511 Gross Profit $ 37,413,658 7,017,716 (1,168,033) 43,263,341 Year ended December 31, 2015 Polysilicon Wafer Elimination Total Revenue – External $ 125,916,457 56,124,511 - 182,040,968 Revenue - Intersegment 23,485,364 - (23,485,364) - Total Revenue 149,401,821 56,124,511 (23,485,364) 182,040,968 Total Cost of revenue 121,193,840 46,763,308 (23,466,065) 144,491,083 Gross Profit $ 28,207,981 9,361,203 (19,299) 37,549,885 Year ended December 31, 2016 Polysilicon Wafer Elimination Total Revenue – External $ 167,530,309 61,570,902 - 229,101,211 Revenue - Intersegment 28,688,793 - (28,688,793) - Total Revenue 196,219,102 61,570,902 (28,688,793) 229,101,211 Total Cost of revenue 125,320,832 52,413,007 (29,061,146) 148,672,693 Gross Profit $ 70,898,270 9,157,895 372,353 80,428,518 Year ended December 31, 2014 2015 2016 Customer C * $ 35,094,472 $ 48,739,001 Customer A * 20,465,558 * Customer B $ 18,210,196 $ 19,595,911 $ * Customer F $ 23,882,302 $ 18,125,773 $ * * Represents less than 10%

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	20. SUBSEQUENT EVENTS On February 3, 2017, the Group granted restricted share units ("RSUs") to acquire 12,653,992 11.8

FINANCIAL STATEMENT SCHEDULE I

FINANCIAL STATEMENT SCHEDULE I	12 Months Ended
	Dec. 31, 2016
FINANCIAL STATEMENT SCHEDULE I [Abstract]
FINANCIAL STATEMENT SCHEDULE I	FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEET DECEMBER 31, 2015 AND 2016 (In U.S. dollars, except share and per share data) December 31, 2015 2016 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,563,083 $ 2,943,502 Prepaid expenses and other current assets 193,583 223,559 Total current assets 2,756,666 3,167,061 Investments in subsidiaries 238,112,877 267,322,549 TOTAL ASSETS $ 240,869,543 $ 270,489,610 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accrued expenses and other current liabilities $ 406,088 $ 389,849 Amount due to a related party - — Income tax payable 108,992 — Total current liabilities 515,080 389,849 EQUITY Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2015 and 2016; 279,214,103 and 279,214,103 shares issued as of December 31, 2015 and 2016, respectively and 260,836,578 and 262,956,278 shares outstanding as of December 31, 2015 and 2016, respectively) 26,320 26,532 Additional paid in capital 236,358,070 240,111,533 Retained Earnings (accumulated deficit) (3,061,404) 40,432,352 Accumulated other comprehensive income (loss) 8,780,313 (8,721,820) Treasury stock (1,748,836) (1,748,836) Total shareholders’ equity 240,354,463 270,099,761 TOTAL LIABILITIES AND EQUITY $ 240,869,543 $ 270,489,610 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2014, 2015 AND 2016 (In U.S. dollars) Year ended December 31, 2014 2015 2016 OPERATING EXPENSES General and administrative $ (2,738,085) $ (4,142,634) $ (3,175,482) Research and development (12,310) - - Total operating expenses (2,750,395) (4,142,634) (3,175,482) LOSS FROM OPERATION (2,750,395) (4,142,634) (3,175,482) Interest income 8,144 1,641 - Exchange gain - 118,679 - Income tax expense - (108,992) - Other income - - - NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES (2,742,251) (4,131,306) (3,175,482) Equity in earnings of subsidiaries 19,391,427 17,088,195 46,669,238 Net income attributable to Daqo New Energy Corporation ordinary shareholders $ 16,649,176 $ 12,956,889 $ 43,493,756 Other comprehensive (loss) income: Foreign currency translation adjustments (3,662,013) (11,256,870) (17,502,133) Total other comprehensive loss (3,662,013) (11,256,870) (17,502,133) Comprehensive income $ 12,987,163 $ 1,700,019 $ 25,991,623 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR YEARS ENDED DECEMBER 31, 2014, 2015 AND 2016 (In U.S. dollars, except share and per share data) Accumulated Retained other Additional earnings (accumulated) comprehensive Ordinary shares Treasury Stock paid in capital losses) income (loss) Total Number $ Balance at January 1, 2014 173,427,853 $ 17,343 $ (398,672) $ 146,676,163 $ (32,667,469) $ 23,699,196 $ 137,326,561 Net income 16,649,176 16,649,176 Other comprehensive loss (3,662,013) (3,662,013) Share-based compensation 1,792,819 1,792,819 Option Exercised 150,000 15 37,065 37,080 Follow-on equity offering, net of issuance cost of $3,375,553 50,000,000 5,000 54,619,447 54,624,447 Balance at December 31, 2014 223,577,853 22,358 (398,672) 203,125,494 (16,018,293) 20,037,183 206,768,070 Net income 12,956,889 12,956,889 Other comprehensive loss (11,256,870) (11,256,870) Share-based compensation 3,687,951 3,687,951 Option Exercised 1,115,625 112 275,671 275,783 Follow-on equity offering, net of issuance costs of $2,033,041 38,500,000 3,850 27,993,109 27,996,959 Repurchase of Stock (2,356,900) (1,350,164) (1,350,164) Capital injection from noncontrolling shareholders 1,275,845 1,275,845 Balance at December 31, 2015 260,836,578 26,320 (1,748,836) 236,358,070 (3,061,404) 8,780,313 240,354,463 Net income 43,493,756 43,493,756 Other comprehensive loss (17,502,133) (17,502,133) Share-based compensation 2,702,089 2,702,089 Option Exercised 2,119,700 212 1,051,374 1,051,586 Balance at December 31, 2016 262,956,278 26,532 (1,748,836) 240,111,533 40,432,352 (8,721,820) 270,099,761 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2014, 2015 AND 2016 (In U.S. dollars) Year ended December 31, 2014 2015 2016 OPERATING ACTIVITIES Net (loss) income $ 16,649,176 $ 12,956,889 $ 43,493,756 Share of results of subsidiaries (19,391,427) (17,088,195) (46,669,238) Share-based compensation 1,792,819 3,687,951 2,702,089 Adjustments to reconcile net income to net cash used in operating activities: Prepaid expenses and other current assets (27,195) 11,099 (29,976) Changes in other current liabilities (26,901) (96,166) (58,806) Amount due to a related party 286,526 (286,526) — Income tax payable — 108,992 (108,992) Net cash used in operating activities (717,002) (705,956) (671,167) INVESTING ACTIVITIES Capital contributed to subsidiaries (54,638,421) (33,256,774) — Cash collected from subsidiaries when liquidation — — — Disposition of minority interest in subsidiary — 5,110,085 — Net cash used in investing activities (54,638,421) (28,146,689) — FINANCING ACTIVITIES Repurchase of ordinary shares — (1,350,164) — Proceeds from follow-on equity offering 58,000,000 30,030,000 — Insurance cost for follow-on equity offering (3,375,553) (2,033,041) — Proceeds from options exercised 37,080 275,783 1,051,586 Net cash provided by financing activities 54,661,527 26,922,578 1,051,586 NET DECREASE IN CASH AND CASH EQUIVALENTS (693,896) (1,930,067) 380,419 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,187,046 4,493,150 2,563,083 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,493,150 $ 2,563,083 $ 2,943,502 FINANCIAL STATEMENT SCHEDULE I DAQO NEW ENERGY CORP. Notes to Schedule I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information of Daqo New Energy Corp has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividend was paid by the Company's subsidiaries to their parent company in 2016. 4. As of December 31, 2016, 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 ACCOUNTI30

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
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 generally accepted accounting principles in the United States ("U.S. 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. As of December 31, 2016, the Group’s current liabilities exceed its current assets by $ 176.4 0.3 16.0 106.0 4.7 Such negative working capital and adverse current ratio may raise substantial doubt about the Group’s ability to continue as a going concern, which indicates that it is probable that the Group will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. However, the management has evaluated the significance of the conditions and regards the going concern assumption as appropriate based on the following considerations: 1. The Group generated net income and positive cash flow from operations for three consecutive years with a net operating cash inflow of $ 99 2. With the completion of the polysilicon Phase 3A expansion project in Xinjiang, the nameplate capacity of polysilicon increased by 48 3. The Group has completed a series of cost reduction activities such as technology improvement. 4. The Group has performed a review of its cash flow forecasts for the twelve month period after the date that the financial statements are issued and believes that its operating cash flow will be positive. Furthermore, the management also has plans to alleviate substantial doubt about its ability to continue as a going concern: 1. On March 21, 2017, the Group obtained a letter of financial support from Daqo Group which has committed to provide sufficient financial support to the Group to ensure the Group has the funds required to satisfy its obligations as they come due in the normal course during the twelve months after the date that the financial statements are issued. Further, the support letter provides that Daqo Group will not require the Group to pay the amount owed to the Daqo Group and subsidiaries of Daqo Group before twelve months after the date that the financial statements are issued. 2. 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 of the loans and believes the Group will continue to be able to do so. Based on the above factors and plans, 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 during the twelve month period after the date that the financial statements are issued.
Basis of consolidations	(b) Basis of consolidations The consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated on consolidation.
Use of estimates	(c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these 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. Management has made significant estimates in a variety of areas, including but not limited to allowance for doubtful accounts, useful lives and residual values of long-lived assets, impairment for long lived assets, valuation allowances for deferred tax assets, interest capitalization and certain assumptions used in the computation of share-based compensation and related forfeiture rates.
Concentration of credit risk	(d) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and notes receivable. The Group places its cash and cash equivalents in various financial institutions in the PRC. The Group believes that no significant credit risk exists as these banks are principally government-owned financial institutions with high credit ratings. Accounts receivable represent those receivables derived in the ordinary course of business. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts mainly based on aging of the receivables and other factors surrounding the credit risk of specific customers. Allowance for doubtful accounts is $ 1,087,465 10,163 Accounts December 31, receivable 2015 2016 Customer A $ * $ 1,576,400 Customer B $ * $ 1,368,956 Customer C $ 2,996,042 $ 1,294,342 Customer D $ 6,354,510 $ * Customer F $ 2,315,035 $ * Customer G $ 2,299,732 $ * * Represents less than 10% From time to time, certain accounts receivable balances are settled in the form of notes receivable. As of December 31, 2015 and 2016, notes receivable represents bank acceptance drafts that are non-interest bearing and due within 6 months. Furthermore, all of the Group's long-term bank borrowings are guaranteed by Daqo Group, our related party, who has also committed to provide financial support to meet the Group's short term bank borrowings obligations, other liabilities and commitments as they become due (see Note 2(a)). The Group's access to credit is significantly reliant on Daqo Group's ability and willingness to continue to provide sufficient financial support.
Cash and cash equivalents	(e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased.
Restricted cash	(f) Restricted cash Restricted cash of $ 19,062,714 15,893,467
Allowance for Doubtful Accounts	(g) Allowance for Doubtful Accounts The Group determines its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of trade receivables. In determining its allowance for doubtful accounts, the Group also considers other economic factors, such as aging trends. The Group believes that its process of specific review of customers combined with overall analytical review provides an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts are recorded as general and administrate expense in the consolidated statements of operations.
Inventories	(h) Inventories Inventories are stated at lower of cost or net realizable value. Costs are determined using weighted average costs. Costs comprise direct materials, direct labor and overhead costs incurred in bringing the inventories to their present location and condition. The Group writes down the cost of excess inventories to the estimated market value based on historical and forecasted demand. Estimated net realizable value is measured as the estimated selling price of each class of inventory in the ordinary course of business less estimated costs of completion and disposal. The charges to inventory for the years ended December 31, 2014, 2015 and 2016 were $ 175,568 62,422 The Group has outsourced portions of its manufacturing process, including cutting ingots into wafers, and converting wafers into solar cells, to various third-party manufacturers. These outsourcing arrangements may or may not include transfer of title of the raw material inventory (ingots, wafers or cells) to the third-party manufacturers. For those outsourcing arrangements in which title does not transfer, the Group maintains the inventory in the balance sheet as raw materials inventory while it is in physical possession of the third-party manufacturers. Upon receipt of the processed inventory from the third-party manufacturers, it is reclassified to work-in-progress inventory with the processing fee capitalized as cost of inventory. For those outsourcing arrangements in which title (including risk of loss) does transfer to the third-party manufacturer, the Group is contractually obligated to repurchase the processed inventory. To accomplish this, it enters into raw material sales agreements and processed inventory purchase agreements simultaneously with the third-party manufacturer. In such instances, where they are, in substance tolling arrangements, the Group retains the inventory in the consolidated balance sheets while it is in the physical possession of the third-party manufacturer. The cash received from the third-party manufacturer is recorded as a current liability on the balance sheet rather than revenue or deferred revenue. Upon receipt of the processed inventory, it is reclassified from raw materials to work-in-progress inventory and the processing fee paid to the third-party manufacturer is added to inventory cost. Cash payments for outsourcing arrangements which require prepayment for repurchase of the processed inventory are classified as current assets on the balance sheet. If there is no legal right of offset established by these arrangements, the associated assets and liabilities are presented separately on the balance sheet until the processed inventory is returned to the Group.
Property, plant and equipment	(i) Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis over the following estimated useful lives: Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6 The Group reassesses the reasonableness of the estimates of useful lives and residual values of long-lived assets when events or changes in circumstances indicate that the useful lives and residual values of a major asset or a major category of assets may not be reasonable. Factors that the Group considers in deciding when to perform an analysis of useful lives and residual values of long-lived assets include, but are not limited to, significant variance of a business or product line in relation to expectations, significant deviation from industry or economic trends, and significant changes or planned changes in the use of the assets. The analysis will be performed at the asset or asset category with the reference to the assets’ conditions, current technologies, market, and future plan of usage and the useful lives of major competitors. Costs incurred on construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Interest expense incurred for construction of property, plant, and equipment is capitalized as part of the cost of such assets. The Group capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. Interest expense capitalized for the years ended December 31, 2014, 2015 and 2016 was $ 1,960,259 2,825,879 1,757,547
Prepaid land use rights	(j) Prepaid land use rights All land in the PRC is owned by the PRC government. The PRC government, according to PRC law, may sell the land use rights for a specified period of time. The Group’s land use rights in the PRC are stated at cost less recognized lease expenses. Lease expense is recognized over the term of the agreement on a straight-line basis. The Group recorded lease expenses of $ 628,052 595,716 557,162
Impairment of long-lived assets	(k) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors that the Group considers in deciding when to perform an impairment review include, but are not limited to significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planed changes in the use of the assets. An impairment analysis is performed at the lowest level of identifiable independent cash flows for an asset or asset group. The Group makes subjective judgments in determining the independent cash flows that can be related to a specific asset group based on the asset usage model and manufacturing capabilities. The Group measures the recoverability of assets that will continue to be used in the operations by comparing the carrying value of the asset group to the estimate of the related total future undiscounted cash flows. If an asset group’s carrying value is not recoverable through the related undiscounted cash flows, the impairment loss is measured by comparing the difference between the asset group’s carrying value and its fair value. The Group determines the fair value of an asset or asset group utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. 1,622,588 198,689 1.6 0.2
Revenue recognition	(l) Revenue recognition Product sales The Group recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of the sales contracts transfer title and risk of loss to customers upon receipt. Sales agreements for polysilicon and wafers typically do not contain product warranties except for return and replacement of defective products within a period generally ranging from 3 to 30 days from delivery. Sales agreements typically do not contain post-shipment obligations or other return or credit provisions. Customers frequently pay for products prior to the delivery of the products. Advance payments are recorded as advances from customers. Service revenue The Group also provides OEM services to customers, such as the provision of service to process polysilicon into ingots and wafers. The Group recognizes revenue when there is persuasive evidence of an arrangement, the service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured.
Cost of revenues	(m) Cost of revenues Cost of revenues consists of production related costs including costs of silicon raw materials, electricity and other utilities, consumables, direct labor, overhead costs, depreciation of property, plant and equipment, and manufacturing waste treatment processing fees. Cost of revenues does not include shipping and handling expenses, therefore the Group's cost of revenues may not be comparable to other companies which include such expenses in their cost of revenues.
Shipping and handling	(n) Shipping and handling Costs to ship products to customers are recorded as selling expenses in the consolidated statements of operations. Costs to ship products to customers were $ 2,054,786 2,708,962 3,147,594
Research and development expenses	(o) Research and development expenses Research and development expenses include materials and utilities consumed in research and development activities, payroll and related costs and depreciation of property and equipment associated with the research and development activities, which are expensed when incurred. In the years ended December 31, 2015 and 2016, the Group incurred additional research and development expenses for its Xinjiang Phase II polysilicon facilities to achieve the targets for quality, capacity and cost during the pilot production period.
Government subsidies	(p) Government subsidies The Group receives unrestricted cash subsidies from local government agencies. The government agencies, at their discretion, determine the amount of the subsidies with reference to fixed assets and land use right payments, value-added tax and income taxes paid, bank loan interest expenses paid or electricity consumed by the Group; however, these subsidies do not represent tax refunds or reimbursements of expenditures. The subsidies are unrestricted as to use and can be utilized by the Group in any manner it deems appropriate. The Group has utilized, and expects to continue to utilize, these subsidies to fund general operating expenses. The Group records unrestricted cash government subsidies as other operating income in the consolidated statements of operations. Unrestricted cash government subsidies received for the years ended December 31, 2014, 2015 and 2016 were $ 926,173 3,578,865 4,742,635 113,735 690,889 323,769
Income taxes	(q) Income taxes Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amount in the consolidated 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change.
Share-based compensation	(r) Share-based compensation The Group recognizes share-based compensation in the consolidated statements of operations based on the fair value of equity awards on the date of the grant, with compensation expense recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. The fair value of share options is determined using the Black-Scholes valuation model and the fair value of restricted share units ("RSUs") is determined with reference to the fair value of the underlying shares. The Group has made an estimate of expected forfeiture and is recognizing compensation costs only for those equity awards expected to vest. The share-based compensation expenses have been categorized as either selling, general and administrative expenses, research and development expenses or cost of sales, depending on the job functions of the grantees. For the years ended December 31, 2014, 2015 and 2016, the Group recognized share-based compensation expense of $1,792,819, $3,687,951 and $2,702,089, respectively, which was classified as follows: Year ended December 31, 2014 2015 2016 Selling, general and administrative expenses $ 1,544,078 $ 3,323,948 $ 2,501,957 Research and development expenses 12,310 — — Cost of sales 236,431 364,003 200,132 Total $ 1,792,819 $ 3,687,951 $ 2,702,089
Earnings (loss) per share	(s) Earnings per share Basic earnings per ordinary share are computed by dividing the net income attributable to ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the year. Diluted earnings per share is computed using the treasury stock method.
Foreign currency translation	(t) Foreign currency translation The reporting currency of the Company is the United States dollar (“U.S. dollar”). The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in other currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange in effect at the balance sheet dates. Transactions dominated in currencies other than the U.S. dollar during the year are converted into U.S. dollar at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in the statements of operations. The financial records of the Company’s PRC subsidiaries are maintained in Chinese Renminbi (“RMB”), which is their functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated at average rate of exchange prevailing during the periods presented. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statement of changes in equity and comprehensive income. The RMB is not a freely convertible currency. The State Administration for Foreign Exchange of People’s Republic of China, 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 $ 30,891,550 28,839,371
Fair value of financial instruments	(u) Fair value of financial instruments The Group estimates fair value of financial assets and liabilities as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The fair value measurement guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. · 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 to price an asset or liability. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group’s consolidated assets, liabilities, shareholders’ equity and net income or loss. The Group’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, note receivables other current assets, amount due from related parties, accounts payable, other current liabilities, payables for purchase of property, plant and equipment, amounts due to related parties and short-term and current portion of long-term bank borrowings. The carrying amounts of these short-term financial instruments approximate their fair values due to the short-term maturity of these instruments. The fair value of the Group’s long-term bank borrowings as of December 31, 2015 and 2016 is estimated by discounted cash flow technique using an interest rate corresponding to debt with similar maturities and risks on the measurement date. The long-term bank borrowings approximate their fair values because market interest rates have no fluctuated significantly since the contract signed.
Noncontrolling interest	(v) Noncontrolling interest The Group classified the ownership interest in the consolidated entity held by a party other than the Group to noncontrolling interest in the consolidated financial statements. It also reported the consolidated net income at amounts that include the amounts attributable to both the parent and the noncontrolling interest on the face of the Consolidated Statements of Operations. Xinjiang Daqo Investment's equity interests in Xinjiang Daqo are presented as a noncontrolling interest as of December 31, 2015. The non-controlling interest was $ 1,302,027 1,629,161
Treasury Stock	(w) Treasury Stock On July 9, 2012, the Company's Board of Directors authorized the Company to repurchase up to $ 5 2,356,900 1,350,164
Investment accounted for under cost-method	(x) Investment accounted for under the cost-method On February 17, 2016, Xinjiang Daqo entered into an agreement to invest in Syned Fire Safety Service Co., Ltd.(“Syned Fire Safety Services”), a company engaging in fire safety activities. Pursuant to the agreement, Xinjiang Daqo contributed a capital investment of $ 581,581 4,038,900 15.29 The Group reviews its investment in Syed Fire Safety Service to determine whether a decline in fair value below the carrying value, if any, is other- than-temporary. No impairment loss occurred during the year ended December 31, 2016. Although assumptions used in estimates of fair value of the investment in Syed Fire Safety Service are management best estimates, such assumptions are, by nature, highly judgmental and may vary significantly from actual results.
Adoption of New Accounting Pronouncement	(y) Adoption of New Accounting Pronouncement In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern, which requires management of public and private companies to evaluate whether there is 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. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The new standard is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The Group has adopted ASU 2014-15, assessed its ability to continue as a going concern and concluded that substantial doubt about its ability to continue as a going concern does not exist. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which simplifies the presentation of deferred taxes on the balance sheet by requiring classification of all deferred tax items as noncurrent including valuation allowances by jurisdiction. The ASU is effective for public entities for annual and interim periods beginning after December 15, 2016, and interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Group adopted the ASU and has already considered the impact on its consolidated financial statements and related disclosures as of December 31, 2016 and the effect is not material.
Recent accounting pronouncements	(z) Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. The core principle of the new guidance is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple element arrangements. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company must adopt ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the "new revenue standards"). The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The new revenue standards become effective for the Company on January 1, 2018. The Company currently anticipates adopting the new revenue standards using the full retrospective method. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330), which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Group will adopt this ASU on its effective date of January 1, 2017 and is in the process of evaluating the impact on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within that reporting period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lessees to recognize right-of-use assets and liabilities for operating leases, initially measured at the present value of the lease payments, on the balance sheet. In addition, it requires lessees to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This ASU will become effective for the Company in the first quarter of fiscal year 2019, and requires adoption using a modified retrospective approach. The Group is in the process of evaluating the impact on its consolidated financial statements, as well as the impact of adoption on policies, practices and systems. As of December 31, 2016, the Group has $ 2.9 In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation – Stock Compensation. The objective of this amendment is part of the FASB’s Simplification Initiative as it applies to several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date of the amendment is for fiscal years beginning after December 31, 2016 and interim periods within that reporting period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In June 2016, the FASB issued ASU 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Company is in the process of evaluating the impact on its consolidated financial statements upon adoption. In August 2016, the FASB issued ASU 2016-15 which amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017 and is applied retrospectively. Early adoption is permitted including adoption in an interim period. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 becomes effective for the Company on January 1, 2018. The adoption of this accounting pronouncement will impact the presentation of restricted cash in the Company’s Consolidated Statements of Cash Flows. The new guidance permits early adoption. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption.

SUMMARY OF PRINCIPAL ACCOUNTI31

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract]
Schedule of Accounts Receivable	Accounts December 31, receivable 2015 2016 Customer A $ * $ 1,576,400 Customer B $ * $ 1,368,956 Customer C $ 2,996,042 $ 1,294,342 Customer D $ 6,354,510 $ * Customer F $ 2,315,035 $ * Customer G $ 2,299,732 $ * * Represents less than 10%
Schedule of Property, Plant and Equipment, Depreciation, Estimated Lives	Buildings and plant 30 Machinery and equipment 15 Furniture, fixtures and equipment 3 5 Motor vehicles 6
Schedule of Share-Based Compensation Expenses	Year ended December 31, 2014 2015 2016 Selling, general and administrative expenses $ 1,544,078 $ 3,323,948 $ 2,501,957 Research and development expenses 12,310 — — Cost of sales 236,431 364,003 200,132 Total $ 1,792,819 $ 3,687,951 $ 2,702,089

ALLOWANCES FOR DOUBTFUL RECEI32

ALLOWANCES FOR DOUBTFUL RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2016
ALLOWANCES FOR DOUBTFUL RECEIVABLES [Abstract]
Schedule of Allowances for Accounts Receivable	Year ended December 31, 2014 2015 2016 Beginning of the year $ 7,160,782 $ 3,189,110 $ 1,087,465 Reversal during the year (3,823,744) (2,026,567) (1,053,041) Foreign exchange effect (147,928) (75,078) (24,261) Closing balance $ 3,189,110 $ 1,087,465 $ 10,163

PREPAID EXPENSE AND OTHER CUR33

PREPAID EXPENSE AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
PREPAID EXPENSE AND OTHER CURRENT ASSETS [Abstract]
Schedule of Prepaid Expense and Other Current Assets	December 31, 2015 2016 Spare parts $ 6,052,315 $ 5,732,914 Prepaid Value added tax (“VAT”) 5,552,772 1,808,141 Prepaid insurance fee 347,631 259,650 Others 282,423 226,962 Total $ 12,235,141 $ 8,027,667

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
INVENTORIES [Abstract]
Schedule of Inventories	December 31, 2015 2016 Raw materials $ 2,343,104 $ 2,947,296 Work-in-process 5,626,531 4,878,905 Finished goods 2,746,304 4,454,499 Total $ 10,715,939 $ 12,280,700

PROPERTY, PLANT AND EQUIPMENT35

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]
Schedule of Property, Plant and Equipment, Net	December 31, 2015 2016 Cost Buildings and plant $ 313,290,516 $ 286,302,082 Machinery and equipment 389,373,554 371,703,665 Furniture, fixtures and equipment 22,418,768 21,355,517 Motor vehicles 293,331 334,025 Less: Accumulated depreciation (188,680,279) (206,725,215) Property, plant and equipment, net $ 536,695,889 $ 472,970,074 Construction in process 7,630,236 84,457,810 Total $ 544,326,125 $ 557,427,884

BORROWINGS (Tables)

BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2016
BORROWINGS [Abstract]
Schedule of Bank Borrowings	December 31, 2015 2016 Short-term bank borrowings $ 72,360,730 $ 55,582,070 Long-term bank borrowings, current portion 51,576,265 50,398,250 Total borrowings, current 123,936,995 105,980,320 Long-term bank borrowings, non-current portion 118,548,430 111,948,913 Total $ 242,485,425 $ 217,929,233
Schedule of Short-Term Borrowings	December 31, 2015 2016 Short-term borrowings 72,360,730 55,582,070 Total $ 72,360,730 $ 55,582,070
Schedule of Long-Term Bank Borrowings	December 31, 2015 2016 Borrowing from Huaxia Bank 3,079,180 — Borrowing from Bank of China 70,821,140 33,118,850 Borrowing from Chongqing Rural Commercial Bank 96,224,375 129,228,313 Total $ 170,124,695 $ 162,347,163
Schedule of Principal Maturities of Long-term Bank Borrowings	December 31, 2016 Amount 2017 $ 50,398,250 2018 25,003,292 2019 27,577,922 2020 27,577,922 2021 18,938,223 2022 10,298,523 2023 2,553,031 Total $ 162,347,163

ACCRUED EXPENSES AND OTHER CU37

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	December 31, 2015 2016 Accrued payroll and welfare $ 3,524,876 $ 3,798,472 Accrued professional fees 776,518 374,944 Other tax payables 2,298,780 1,802,962 Interest payable 38,054 390,467 Others 1,978,603 1,953,196 Total $ 8,616,831 $ 8,320,041

ADVANCES FROM CUSTOMERS (Tables

ADVANCES FROM CUSTOMERS (Tables)	12 Months Ended
	Dec. 31, 2016
ADVANCES FROM CUSTOMERS [Abstract]
Schedule of Advances from Customers	December 31, 2015 2016 Customer F $ — $ 3,035,415 Customer G — 1,608,539 Customer H 3,237,308 — Customer I 1,517,402 — Customer J 1,539,590 1,343,600 Others 1,889,076 1,532,051 Total $ 8,183,376 $ 7,519,605

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
Schedule of Nonrecurring Fair Value Measurements	Year ended December 31, 2015 Quoted Prices in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Description amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Total Losses Property, plant and equipment – cannot be relocated to Xinjiang plant (Note 3) $ 1,622,588 $ $ $ — $ 1,622,588 Year ended December 31, 2016 Description Carrying Quoted Prices in Significant Significant Total Losses Property, plant and equipment – cannot be relocated to Xinjiang plant (Note 3) $ 198,689 $ $ $ — $ 198,689

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
Schedule of Income Tax Expenses	Year ended December 31, 2014 2015 2016 Current Tax Expenses $ — $ 1,786,092 $ 7,357,623 Deferred Tax Expenses (Benefit) — (648,271) 466 Total $ — $ 1,137,821 $ 7,358,089
Schedule of Deferred Tax Assets and Liabilities	December 31, 2015 2016 Net operating loss carried forward $ 22,549,975 $ 20,039,534 Bad debt provision 163,120 1,524 Government grants related to assets 166,922 217,661 Long-lived asset impairment&depreciation 19,624,021 18,113,967 Others 485,776 942,466 Sub-total 42,989,814 39,315,152 Valuation Allowance (42,362,849) (38,729,208) Total $ 626,965 $ 585,944
Schedule of Changes of Valuation Allowance	Year ended December 31, 2014 2015 2016 Beginning balance $ 56,633,867 $ 50,109,751 $ 42,362,849 Reversal (5,168,917) (5,708,268) (932,833) Foreign exchange effect (1,355,199) (2,038,634) (2,700,808) Ending Balance $ 50,109,751 $ 42,362,849 $ 38,729,208
Schedule of Effective Income Tax Rate Reconciliation	Year ended December 31, 2014 2015 2016 PRC Enterprise Income Tax 25 % 25 % 25 % Preferential income tax rate of a subsidiary (9) % (8) % (10) % Effect of different reversal rate 1 % — % — % Additional tax deductions (8) % (12) % (1) % Different tax rate in other jurisdictions 6 % 8 % 1 % Changes in valuation allowance — % (3) % (1) % Tax credits (15) % (3) % — % Withhold tax — % 1 % — % Effective tax rate — % 8 % 14 %

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
SHARE BASED COMPENSATION [Abstract]
Schedule of Assumptions Used	Year Ended December 31, 2014 Average Post- risk-free vesting Options rate of Exercise Volatility Dividend forfeiture granted return multiple rate yield rate January 28, 2014 2.77% 3.0-3.5 times 93.0% 0% 3-9.5% Year Ended December 31, 2015 Average Post- risk-free vesting Options rate of Exercise Volatility Dividend forfeiture granted return multiple rate yield rate January 12, 2015 2.82% 1.8-3 times 93.0% 0% 5%-8% July 06, 2015 3.20% 3 times 91.0% 0% 5% September 09, 2015 2.94%-3.08% 1.8-3 times 91.0%-92.0% 0% 5%-8%
Summary of Stock Option Activity	Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contract Life Value Options outstanding on January 1, 2016 17,528,541 0.50 Granted — — Forfeited (147,235) 0.59 Expired (2,465) 0.15 Exercised (2,119,700) 0.50 Options outstanding on December 31, 2016 15,259,141 0.50 6.46 4,304,907 Options vested or expected to vest on December 31, 2016 17,037,682 0.44 5.79 5,691,147 Options exercisable on December 31, 2016 11,902,422 0.47 6.05 3,691,299

RELATED PARTY TRANSACTIONS AN42

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS AND BALANCES [Abstract]
Schedule of Related Party Balances, Loans	December 31, 2015 2016 Amounts due from related parties Zhenjiang Daqo $ 229,989 $ 1,449,824 Others 54,644 78,888 Total $ 284,633 $ 1,528,712
Schedule of Related Party Balances, Payables	December 31, 2015 2016 Amounts due to related parties Daqo Group $ 33,758 $ 15,076,133 Daqo New Material 5,563,165 8,323,271 Xinjiang Daqo investment 3,146,054 79,197 Daqo Solar 37,390,575 — Chongqing Daqo Tailai 144,102 2,107,488 Nanjing Daqo Transformer — 1,022,075 Others* 118,873 221,441 Total $ 46,396,527 $ 26,829,605 * The remaining balance of amounts due to related parties of $ 221,441 37,679 85,332 9,804 88,626
Schedule of Related Party Transactions	Transaction Year Ended December 31, Name of Related parties Nature 2014 2015 2016 Daqo Group Purchase-Fixed asset 486,948 — — Proceeds from interest free loans 10,821,462 15,043,550 — Repayment of interest free loans 8,115,813 20,217,257 10,974,807 Repayment of interest bearing loan — — 15,059,000 Interest charged — — 850,380 Rental expense — — 27,997 Zhenjiang Daqo Sales 9,554,320 11,111,239 11,194,197 Daqo Solar Sales 9,595,680 783,705 — Proceeds from interest free loans 157,241,390 127,060,826 60,300,896 Repayment of interest free loans 166,231,092 151,990,672 68,766,506 Nanjing Daqo Proceeds from interest free loans 973,898 13,456,861 — Repayment of interest free loans 2,921,693 13,456,861 — Xinjiang Daqo Investment Proceeds from interest free loans 98,367,234 72,946,700 56,270,085 Repayment of interest free loans 93,219,846 73,252,506 38,715,449 Daqo New Material Proceeds from interest free loans 7,729,501 11,082,241 9,607,344 Repayment of interest free loans 4,600,117 11,285,114 12,262,592 Rental expense 1,071,287 1,050,661 993,894 Chongqing Daqo Tailai Purchase-Fixed asset 2,724,790 375,528 3,534,248 Purchase-Raw material — 9,938 — Income from disposal of fixed assets — 6,458 — Proceeds from interest free loans — 6,367,640 222,517 Repayment of interest free loans — 6,367,640 2,684,783 Others subsidiaries under Daqo Group Proceeds from interest free loans 636 — — Repayment of interest free loans — 5,296 — Purchase-Fixed asset* 3,989,686 3,488,330 2,120,768 Purchase-Raw material — 22,817 129,219 Total Sales $ 19,150,000 $ 11,894,944 $ 11,194,197 Income from disposal of fixed assets $ — $ 6,458 $ — Purchase-Fixed asset $ 7,201,424 $ 3,863,858 $ 5,655,016 Purchase-Raw material $ — $ 32,755 $ 129,219 Rental expense $ 1,071,287 $ 1,050,661 $ 1,021,891 Interest expense $ — $ — 850,380 Proceeds from related parties loans $ 275,134,122 $ 245,957,818 $ 126,400,842 Repayment of related parties loans $ 275,088,560 $ 276,575,346 $ 148,463,137 *The purchases of fixed assets of $2,120,768 were comprised of purchases from Nanjing Daqo Transformer, Zhenjiang Moeller, Jiangsu Daqo, Intelligent Apparatus and Jiangsu Daqo ETE Electronic in the amount of $ 1,410,655 236,415 336,791 93,841 43,066

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE [Abstract]
Schedule of Calculation of Earnings Per Share	Year ended December 31, 2014 2015 2016 Numerator used in basic and diluted earnings per share: Net income attributable to Daqo New Energy Corp. ordinary shareholders—basic and diluted $ 16,649,176 $ 12,956,889 $ 43,493,756 Denominator used in basic and diluted earnings per share: Weighted average number of ordinary shares outstanding used in computing earnings per share-basic 206,349,976 258,015,851 261,742,244 Plus: share options 5,003,667 3,396,082 3,075,511 Weighted average number of ordinary shares outstanding used in computing earnings per share—diluted 211,353,643 261,411,933 264,817,755 NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Basic $ 0.08 $ 0.05 $ 0.17 NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE—Diluted $ 0.08 0.05 0.16

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
Schedule of Future Minimum Lease Payments	Future minimum lease payments are as follows: Year ending December 31 2017 $ 991,142 2018 $ 991,142 2019 $ 961,538 Total $ 2,943,822

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
SEGMENT INFORMATION [Abstract]
Summary of Financial Information by Segment	The following table summarizes the Group’s revenue by segment: Year ended December 31, 2014 Polysilicon Wafer Elimination Total Revenue – External $ 127,692,325 54,879,527 - 182,571,852 Revenue - Intersegment 29,424,883 - (29,424,883) - Total revenue 157,117,208 54,879,527 (29,424,883) 182,571,852 Total Cost of revenue 119,703,550 47,861,811 (28,256,850) 139,308,511 Gross Profit $ 37,413,658 7,017,716 (1,168,033) 43,263,341 Year ended December 31, 2015 Polysilicon Wafer Elimination Total Revenue – External $ 125,916,457 56,124,511 - 182,040,968 Revenue - Intersegment 23,485,364 - (23,485,364) - Total Revenue 149,401,821 56,124,511 (23,485,364) 182,040,968 Total Cost of revenue 121,193,840 46,763,308 (23,466,065) 144,491,083 Gross Profit $ 28,207,981 9,361,203 (19,299) 37,549,885 Year ended December 31, 2016 Polysilicon Wafer Elimination Total Revenue – External $ 167,530,309 61,570,902 - 229,101,211 Revenue - Intersegment 28,688,793 - (28,688,793) - Total Revenue 196,219,102 61,570,902 (28,688,793) 229,101,211 Total Cost of revenue 125,320,832 52,413,007 (29,061,146) 148,672,693 Gross Profit $ 70,898,270 9,157,895 372,353 80,428,518
Schedule of Revenues of Major Customers	The following customers individually accounted for 10% or more of revenues: Year ended December 31, 2014 2015 2016 Customer C * $ 35,094,472 $ 48,739,001 Customer A * 20,465,558 * Customer B $ 18,210,196 $ 19,595,911 $ * Customer F $ 23,882,302 $ 18,125,773 $ * * Represents less than 10%

ORGANIZATION AND PRINCIPAL AC46

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Proceeds from non-controlling interest			$ 2,516,457
Xinjiang Daqo Investment [Member]
Related Party Transaction [Line Items]
Equity interest acquired (as a percent)	1.00%
Daqo Group [Member] | Xinjiang Daqo [Member]
Related Party Transaction [Line Items]
Ownership percentage	100.00%
Proceeds from non-controlling interest	$ 2,500,000

SUMMARY OF PRINCIPAL ACCOUNTI47

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Additional Information) (Details)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)	Jan. 31, 2017	Feb. 17, 2016USD ($)	Feb. 17, 2016CNY (¥)	Dec. 31, 2013USD ($)
Basis of presentation
Working capital	$ 176,400,000
Cash and cash equivalents	15,987,478	$ 14,490,011	$ 7,068,483				$ 7,831,084
Short-term bank borrowings, including current portion of long-term bank borrowings	105,980,320	123,936,995
Capital commitments relating to purchases of property, plant and equipment	$ 4,700,000
Consecutive years in which net income and positive cash flow from operations generated	3 years
Current Ratio	0.3
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	$ 98,671,937	66,426,213	45,619,729
Restricted cash
Restricted cash	15,893,467	19,062,714
Inventories
Inventory write-down		62,422	175,568
Prepaid land use rights
Lease Expenses	557,162	595,716	628,052
Impairment of long-lived assets
Long-lived asset impairment	198,689	1,622,588
Impairment charges included in loss from discontinued operations	200,000	1,600,000
Shipping and handling
Shipping and handling costs	3,147,594	2,708,962	2,054,786
Government subsidies
Unrestricted cash government subsidies	4,742,635	3,578,865	926,173
Government grants related to assets	323,769	690,889	113,735
Foreign currency translation
Aggregate amount of cash and cash equivalents and restricted cash denominated in RMB	28,839,371	30,891,550
Noncontrolling interest
Noncontrolling interest	1,629,161	$ 1,302,027
Treasury Stock
Share repurchase program, authorized amount	5,000,000
Number of shares repurchased | shares		2,356,900
Purchase price of treasury stock		$ 1,350,164
Investment accounted for under cost-method
Cost Method Investments	581,581
Operating Leases, Future Minimum Payments Due	$ 2,943,822
Syed Fire Safety Service Co [Member]
Investment accounted for under cost-method
Cost Method Investment, Ownership Percentage					15.29%	15.29%
Cost Method Investments					$ 581,581	¥ 4,038,900
Subsequent Event [Member]
Basis of presentation
Percentage Of Capacity Increase In Expansion Project				48.00%

SUMMARY OF PRINCIPAL ACCOUNTI48

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Concentration of Credit Risk) (Details) - USD ($)	Dec. 31, 2016		Dec. 31, 2015
Concentration of credit risk
Accounts receivable, allowance for doubtful accounts	$ 10,163		$ 1,087,465
Accounts receivable	4,836,499		19,849,608
Customer A [Member]
Concentration of credit risk
Accounts receivable	1,576,400			[1]
Customer B [Member]
Concentration of credit risk
Accounts receivable	1,368,956			[1]
Customer C [Member]
Concentration of credit risk
Accounts receivable	1,294,342		2,996,042
Customer D [Member]
Concentration of credit risk
Accounts receivable		[1]	6,354,510
Customer F [Member]
Concentration of credit risk
Accounts receivable		[1]	2,315,035
Customer G [Member]
Concentration of credit risk
Accounts receivable		[1]	$ 2,299,732
[1]	Represents less than 10%

SUMMARY OF PRINCIPAL ACCOUNTI49

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, plant and equipment
Interest expense capitalized	$ 1,757,547	$ 2,825,879	$ 1,960,259
Buildings and plant [Member]
Property, plant and equipment
Estimated useful lives	30 years
Machinery and equipment [Member]
Property, plant and equipment
Estimated useful lives	15 years
Furniture, fixtures and equipment [Member] | Minimum [Member]
Property, plant and equipment
Estimated useful lives	3 years
Furniture, fixtures and equipment [Member] | Maximum [Member]
Property, plant and equipment
Estimated useful lives	5 years
Motor vehicles [Member]
Property, plant and equipment
Estimated useful lives	6 years

SUMMARY OF PRINCIPAL ACCOUNTI50

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Share-based Compensation) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 2,702,089	$ 3,687,951	$ 1,792,819
Selling, general and administrative expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	2,501,957	3,323,948	1,544,078
Research and development expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation			12,310
Cost of sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 200,132	$ 364,003	$ 236,431

EXIT and DISPOSAL ACTIVITIES (D

EXIT and DISPOSAL ACTIVITIES (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2016CNY (¥)	Dec. 31, 2015CNY (¥)	Dec. 31, 2014CNY (¥)	Dec. 31, 2013USD ($)
Operating results reported as discontinued operations:
Impairment charge	$ 198,689	$ 1,622,588
Relocation costs	1,100,000
Expected relocation costs	2,600,000
Maintenance expenses		300,000
Wages [Member]
Operating results reported as discontinued operations:
Maintenance expenses		200,000
Electricity fees [Member]
Operating results reported as discontinued operations:
Maintenance expenses		100,000
Selling, general and administrative expenses [Member]
Operating results reported as discontinued operations:
Relocation costs		100,000	800,000
Carrying Value [Member] | Significant Production Assets [Member]
Operating results reported as discontinued operations:
Carrying value of assets	200,000	1,600,000	116,100,000			¥ 720.5	$ 144,700,000
Impairment charge	200,000	1,600,000
Carrying value of assets relocated	34,100,000	$ 1,100,000	46,100,000	¥ 236.7	¥ 7	286.4
Carrying value of assets yet to be relocated	$ 15,700,000		$ 70,000,000	¥ 109		¥ 434.1

FOLLOW-ON EQUITY OFFERINGS (Det

FOLLOW-ON EQUITY OFFERINGS (Details) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 28, 2015	May 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
America depositary shares (ADSs) issued, shares	1,540,000	2,000,000
Follow-on equity offering, net of issuance costs, shares	38,500,000	50,000,000
Issuance cost for ordinary shares	$ 2,000,000	$ 3,400,000		$ 2,033,041	$ 3,375,553
Follow-on equity offering, net of issuance costs	$ 28,000,000	$ 54,600,000		$ 27,996,959	$ 54,624,447

ALLOWANCES FOR DOUBTFUL RECEI53

ALLOWANCES FOR DOUBTFUL RECEIVABLES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Analysis of allowances for accounts receivable is as follows:
Beginning of the year	$ 1,087,465	$ 3,189,110	$ 7,160,782
Reversal during the year	(1,053,041)	(2,026,567)	(3,823,744)
Foreign exchange effect	(24,261)	(75,078)	(147,928)
Closing balance	10,163	1,087,465	3,189,110
Allowances reversed during the period	$ 1,053,041	$ 2,026,567	$ 3,823,744

PREPAID EXPENSE AND OTHER CUR54

PREPAID EXPENSE AND OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Spare parts	$ 5,732,914	$ 6,052,315
Prepaid Value added tax ("VAT")	1,808,141	5,552,772
Prepaid insurance fee	259,650	347,631
Others	226,962	282,423
Total	$ 8,027,667	$ 12,235,141

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory [Line Items]
Raw materials	$ 2,947,296	$ 2,343,104
Work-in-process	4,878,905	5,626,531
Finished goods	4,454,499	2,746,304
Total	12,280,700	10,715,939
Inventory write-down		$ 62,422	$ 175,568

PROPERTY, PLANT AND EQUIPMENT56

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total	$ 557,427,884	$ 544,326,125
Depreciation of property, plant and equipment	33,822,082	31,361,026	$ 28,007,943
Long-lived asset impairment	198,689	1,622,588
Buildings and plant [Member]
Property, Plant and Equipment [Line Items]
Cost	286,302,082	313,290,516
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	371,703,665	389,373,554
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	21,355,517	22,418,768
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Cost	334,025	293,331
Depreciable Asset [Member]
Property, Plant and Equipment [Line Items]
Less: Accumulated depreciation	(206,725,215)	(188,680,279)
Total	472,970,074	536,695,889
Construction in process [Member]
Property, Plant and Equipment [Line Items]
Cost	84,457,810	$ 7,630,236
Construction in process [Member] | Phase 3A Expansion [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 84,500,000

BORROWINGS (Schedule of Bank Bo

BORROWINGS (Schedule of Bank Borrowings) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Short-term bank borrowings	$ 55,582,070	$ 72,360,730
Long-term bank borrowings, current portion	50,398,250	51,576,265
Total borrowings, current	105,980,320	123,936,995
Long-term bank borrowings, non-current portion	111,948,913	118,548,430
Total	$ 217,929,233	$ 242,485,425

BORROWINGS (Short-Term Borrowin

BORROWINGS (Short-Term Borrowings) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Short-term borrowings	$ 55,582,070	$ 72,360,730
Interest rate on short-term bank borrowings	5.00%	5.40%
Short Term Borrowing Guaranteed By Daqo Group And Related Parties [Member]
Short-term Debt [Line Items]
Short-term borrowings	$ 55,582,070	$ 72,360,730

BORROWINGS (Long-Term Borrowing

BORROWINGS (Long-Term Borrowings) (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016CNY (¥)	Dec. 31, 2015USD ($)	Dec. 31, 2015CNY (¥)	Dec. 31, 2016CNY (¥)	Dec. 31, 2015CNY (¥)	Jun. 30, 2014USD ($)
Debt Instrument [Line Items]
Long-term bank borrowings	$ 162,347,163
Huaxia Bank [Member]
Debt Instrument [Line Items]
Initiation date of credit facility	Sep. 28, 2011	Sep. 28, 2011
Term of facility	4 years	4 years
Maximum borrowing amount of credit facility	$ 57,600,000				¥ 400
Amount drawn down			$ 57,600,000	¥ 400
Amount repaid	$ 3,000,000	¥ 20	3,000,000	20
Amount available for future draw down			54,600,000			¥ 380
Line of Credit Facility, Maximum Amount Outstanding During Period			57,600,000	400
Huaxia Bank [Member] | Facility One [Member]
Debt Instrument [Line Items]
Amount drawn down			21,600,000	150
Line of Credit Facility, Maximum Amount Outstanding During Period			21,600,000	150
Huaxia Bank [Member] | Facility Two [Member]
Debt Instrument [Line Items]
Amount drawn down			36,000,000	250
Line of Credit Facility, Maximum Amount Outstanding During Period			36,000,000	250
Bank of China [Member]
Debt Instrument [Line Items]
Initiation date of credit facility	Sep. 30, 2011	Sep. 30, 2011
Term of facility	6 years	6 years
Maximum borrowing amount of credit facility	$ 108,000,000		108,000,000		750	750
Interest rate spread over rate issued by People's Bank of China	5.00%	5.00%
Amount repaid			37,200,000	¥ 290
Amount of collateral							$ 63,300,000
Long-term bank borrowings	$ 33,100,000		$ 70,800,000		230	¥ 460
Chongqing Rural Commercial Bank [Member]
Debt Instrument [Line Items]
Initiation date of credit facility	Jun. 25, 2015	Jun. 25, 2015
Term of facility	6 years	6 years
Maximum borrowing amount of credit facility	$ 96,200,000				¥ 625
Interest rate spread over rate issued by People's Bank of China	20.00%	20.00%
Amount drawn down	$ 96,200,000	¥ 625
Amount repaid	$ 18,500,000	85
Fixed interest rate	5.90%				5.90%
Long-term bank borrowings	$ 77,700,000				¥ 540
Line of Credit Facility, Maximum Amount Outstanding During Period	96,200,000	625
Chongqing Rural Commercial Bank [Member] | First Amendment [Member]
Debt Instrument [Line Items]
Amount drawn down	51,500,000	357.5
Line of Credit Facility, Maximum Amount Outstanding During Period	$ 51,500,000	¥ 357.5
Chongqing Rural Commercial Bank [Member] | Facility One [Member]
Debt Instrument [Line Items]
Initiation date of credit facility	May 30, 2016	May 30, 2016
Term of facility	7 years	7 years
Maximum borrowing amount of credit facility	$ 72,000,000				500
Amount drawn down	51,500,000	¥ 357.5
Amount available for future draw down	$ 20,500,000				¥ 142.6
Weighted average interest rate	5.90%				5.90%
Line of Credit Facility, Maximum Amount Outstanding During Period	$ 51,500,000	¥ 357.5
Bank Facilities [Member]
Debt Instrument [Line Items]
Weighted average interest rate	5.80%		5.70%		5.80%	5.70%
Long-term bank borrowings	$ 162,347,163		$ 170,124,695
Bank Facilities [Member] | Huaxia Bank [Member]
Debt Instrument [Line Items]
Long-term bank borrowings	0		3,079,180
Bank Facilities [Member] | Bank of China [Member]
Debt Instrument [Line Items]
Long-term bank borrowings	33,118,850		70,821,140
Bank Facilities [Member] | Chongqing Rural Commercial Bank [Member]
Debt Instrument [Line Items]
Long-term bank borrowings	$ 129,228,313		$ 96,224,375

BORROWINGS (Schedule of Princip

BORROWINGS (Schedule of Principal Maturities of Bank Borrowings) (Details)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
2,017	$ 50,398,250
2,018	25,003,292
2,019	27,577,922
2,020	27,577,922
2,021	18,938,223
2,022	10,298,523
2,023	2,553,031
Total	$ 162,347,163

ACCRUED EXPENSES AND OTHER CU61

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accrued payroll and welfare	$ 3,798,472	$ 3,524,876
Accrued professional fees	374,944	776,518
Other tax payables	1,802,962	2,298,780
Interest payable	390,467	38,054
Others	1,953,196	1,978,603
Total	$ 8,320,041	$ 8,616,831

ADVANCES FROM CUSTOMERS (Detail

ADVANCES FROM CUSTOMERS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Total	$ 7,519,605	$ 8,183,376
Customer F [Member]
Deferred Revenue Arrangement [Line Items]
Total	3,035,415
Customer G [Member]
Deferred Revenue Arrangement [Line Items]
Total	1,608,539
Customer H [Member]
Deferred Revenue Arrangement [Line Items]
Total		3,237,308
Customer I [Member]
Deferred Revenue Arrangement [Line Items]
Total		1,517,402
Customer J [Member]
Deferred Revenue Arrangement [Line Items]
Total	1,343,600	1,539,590
Others [Member]
Deferred Revenue Arrangement [Line Items]
Total	$ 1,532,051	$ 1,889,076

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived asset impairment	$ 198,689	$ 1,622,588
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived asset impairment	198,689	1,622,588
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment - identified untransferrable relocation assets
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment - identified untransferrable relocation assets
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment - identified untransferrable relocation assets
Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment - identified untransferrable relocation assets	$ 198,689	$ 1,622,588

MAINLAND CHINA CONTRIBUTION P64

MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined contribution plan expenses	$ 3,147,927	$ 4,087,334	$ 3,130,308
Aggregate balance of statutory common reserves	21,969,950	$ 17,720,748	$ 20,190,729
Restrictions of statutory reserves	$ 218,043,299

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) ¥ in Millions	1 Months Ended	12 Months Ended
	Nov. 25, 2014	Dec. 31, 2016USD ($)	Dec. 31, 2016CNY (¥)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012
Operating Loss Carryforwards [Line Items]
Income tax paid		$ 2,998,658		$ 2,726,825
Deferred Tax Assets, Valuation Allowance		$ 38,729,208		$ 42,362,849	$ 50,109,751	$ 56,633,867
Statutory enterprise income tax rate		25.00%	25.00%	25.00%	25.00%
State Administration of Taxation, China [Member]
Operating Loss Carryforwards [Line Items]
Statutory enterprise income tax rate		25.00%	25.00%
Preferential tax rate	15.00%	15.00%	15.00%	15.00%		25.00%	25.00%
PRC State Council, income tax rate		10.00%	10.00%
Xinjiang Daqo New Energy Co., Ltd. [Member]
Operating Loss Carryforwards [Line Items]
Income tax paid | ¥			¥ 0.1
Chongqing Daqo New Energy Co., Ltd. [Member]
Operating Loss Carryforwards [Line Items]
Net operating losses carried forward		$ 80,200,000
Deferred Tax Assets, Valuation Allowance		$ 38,729,208		$ 42,362,849

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income Tax Expenses) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current Tax Expenses	$ 7,357,623	$ 1,786,092
Deferred Tax Expenses (Benefit)	466	(648,271)
Total	$ 7,358,089	$ 1,137,821

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Net operating loss carried forward	$ 20,039,534	$ 22,549,975
Bad debt provision	1,524	163,120
Government grants related to assets	217,661	166,922
Long-lived asset impairment&depreciation	18,113,967	19,624,021
Others	942,466	485,776
Sub-total	39,315,152	42,989,814
Valuation Allowance	(38,729,208)	(42,362,849)	$ (50,109,751)	$ (56,633,867)
Total	$ 585,944	$ 626,965

INCOME TAXES (Schedule of Chang

INCOME TAXES (Schedule of Changes of Valuation Allowance) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Beginning balance	$ 42,362,849	$ 50,109,751	$ 56,633,867
Reversal	(932,833)	(5,708,268)	(5,168,917)
Foreign exchange effect	(2,700,808)	(2,038,634)	(1,355,199)
Ending Balance	$ 38,729,208	$ 42,362,849	$ 50,109,751

INCOME TAXES (Schedule of Effec

INCOME TAXES (Schedule of Effective Income Tax Rate) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective income tax rate:
PRC Enterprise Income Tax	25.00%	25.00%	25.00%
Preferential income tax rate of a subsidiary	(10.00%)	(8.00%)	(9.00%)
Effect of different reversal rate			1.00%
Additional tax deductions	(1.00%)	(12.00%)	(8.00%)
Different tax rate in other jurisdictions	1.00%	8.00%	6.00%
Changes in valuation allowance	(1.00%)	(3.00%)
Tax credits		(3.00%)	(15.00%)
Withhold tax		1.00%	0.00%
Effective tax rate	14.00%	8.00%	0.00%

INCOME TAXES (Schedule of Eff70

INCOME TAXES (Schedule of Effect of Tax Holidays) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
The aggregate dollar effect	$ 5.2	$ 1.2	$ 3
Per share effect-basic and diluted	$ 0.02	$ 0.01	$ 0.01

SHARE BASED COMPENSATION (Narra

SHARE BASED COMPENSATION (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares authorized	21,000,000
Granted	0	8,134,375	6,274,166
Weighted average fair value of stock options granted		$ 0.59	$ 0.98
Share-based compensation	$ 2,702,089	$ 3,687,951	$ 1,792,819
Unrecognized compensation cost related to non-vested stock options	$ 2,268,104
Unrecognized compensation cost, recognition period	1 year 9 months

SHARE BASED COMPENSATION (Sched

SHARE BASED COMPENSATION (Schedule of Assumptions Used with Binomial Option Valuation Model) (Details) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
January 28, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free rate of return		2.77%
Volatility rate		93.00%
Dividend yield		0.00%
January 12, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free rate of return	2.82%
Volatility rate	93.00%
Dividend yield	0.00%
July 06, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free rate of return	3.20%
Exercise multiple	3
Volatility rate	91.00%
Dividend yield	0.00%
Post-vesting forfeiture rate	5.00%
September 09, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Minimum [Member] | January 28, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise multiple		3
Post-vesting forfeiture rate		3.00%
Minimum [Member] | January 12, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise multiple	1.8
Post-vesting forfeiture rate	5.00%
Minimum [Member] | September 09, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free rate of return	2.94%
Exercise multiple	1.8
Volatility rate	91.00%
Post-vesting forfeiture rate	5.00%
Maximum [Member] | January 28, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise multiple		3.5
Post-vesting forfeiture rate		9.50%
Maximum [Member] | January 12, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise multiple	3
Post-vesting forfeiture rate	8.00%
Maximum [Member] | September 09, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free rate of return	3.08%
Exercise multiple	3
Volatility rate	92.00%
Post-vesting forfeiture rate	8.00%

SHARE BASED COMPENSATION (Summa

SHARE BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Options outstanding	17,528,541
Granted	0	8,134,375	6,274,166
Forfeited	(147,235)
Expired	(2,465)
Exercised	(2,119,700)
Options outstanding	15,259,141	17,528,541
Options vested or expected to vest	17,037,682
Options exercisable	11,902,422
Weighted Average Exercise Price
Options outstanding	$ 0.50
Granted	0
Forfeited	0.59
Expired	0.15
Exercised	0.50
Options outstanding	0.50	$ 0.50
Options vested or expected to vest	0.44
Options exercisable	$ 0.47
Weighted Average Remaining Contract Life
Options outstanding	6 years 5 months 16 days
Options vested or expected to vest	5 years 9 months 14 days
Options exercisable	6 years 18 days
Aggregate Intrinsic Value
Options outstanding	$ 4,304,907
Options vested or expected to vest	5,691,147
Options exercisable	$ 3,691,299

RELATED PARTY TRANSACTIONS AN74

RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 28, 2012
Related Party Transaction [Line Items]
Sales		$ 11,194,197	$ 11,894,944	$ 19,150,000
Related party balances:
Amounts due from related parties		1,528,712	284,633
Amounts due to related parties		26,829,605	46,396,527
Daqo Group [Member]
Related party balances:
Amounts due to related parties		$ 15,076,133	33,758
Related Party Transaction, Rate		5.70%
Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 5,655,016	3,863,858	7,201,424
Purchases of Fixed Assets [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Purchases				486,948
Purchases of Raw Materials [Member]
Related Party Transaction [Line Items]
Purchases		129,219	32,755
Rental Expenses [Member]
Related Party Transaction [Line Items]
Expense		1,021,891	1,050,661	1,071,287
Rental Expenses [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Expense		27,997
Proceeds From Interest Free Loans [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Other transactions			15,043,550	10,821,462
Repayment of Interest Free Loans [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Other transactions		10,974,807	20,217,257	8,115,813
Income (Loss) from Disposal of Fixed Assets [Member]
Related Party Transaction [Line Items]
Other transactions			6,458
Repayment of Interest Bearing Loan [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Other transactions		15,059,000
Interest Expenses Related Party [Member]
Related Party Transaction [Line Items]
Expense		850,380
Interest Expenses Related Party [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Expense		850,380
Proceeds From Related Parties Loans [Member]
Related Party Transaction [Line Items]
Other transactions		126,400,842	245,957,818	275,134,122
Repayment Of Related Parties Loans [Member]
Related Party Transaction [Line Items]
Other transactions		148,463,137	276,575,346	275,088,560
Zhengjiang Daqo Solar Co. Ltd [Member]
Related Party Transaction [Line Items]
Sales		11,194,197	11,111,239	9,554,320
Related party balances:
Amounts due from related parties		$ 1,449,824	229,989
Zhengjiang Daqo Solar Co. Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Daqo Solar Co Ltd [Member]
Related Party Transaction [Line Items]
Sales			783,705	9,595,680
Related party balances:
Amounts due to related parties			37,390,575
Daqo Solar Co Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Daqo Solar Co Ltd [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		$ 60,300,896	127,060,826	157,241,390
Daqo Solar Co Ltd [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		68,766,506	151,990,672	166,231,092
Daqo Xinjiang Investment Co., Ltd. [Member]
Related party balances:
Amounts due to related parties		$ 79,197	3,146,054
Daqo Xinjiang Investment Co., Ltd. [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Daqo Xinjiang Investment Co., Ltd. [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		$ 56,270,085	72,946,700	98,367,234
Daqo Xinjiang Investment Co., Ltd. [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		38,715,449	73,252,506	93,219,846
Daqo New Material [Member]
Related party balances:
Amounts due to related parties		$ 8,323,271	5,563,165
Daqo New Material [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Daqo New Material [Member] | Rental Expenses [Member]
Related Party Transaction [Line Items]
Expense		$ 993,894	1,050,661	1,071,287
Daqo New Material [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		9,607,344	11,082,241	7,729,501
Daqo New Material [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		12,262,592	11,285,114	4,600,117
Chongqing Daqo Tailai [Member]
Related party balances:
Amounts due to related parties		$ 2,107,488	144,102
Chongqing Daqo Tailai [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Chongqing Daqo Tailai [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 3,534,248	375,528	2,724,790
Chongqing Daqo Tailai [Member] | Purchases of Raw Materials [Member]
Related Party Transaction [Line Items]
Purchases			9,938
Chongqing Daqo Tailai [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		222,517	6,367,640
Chongqing Daqo Tailai [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions		2,684,783	6,367,640
Chongqing Daqo Tailai [Member] | Income (Loss) from Disposal of Fixed Assets [Member]
Related Party Transaction [Line Items]
Other transactions			6,458
Jiangsu Daqo [Member]
Related party balances:
Amounts due to related parties		$ 37,679
Jiangsu Daqo [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Jiangsu Daqo [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 336,791
Nanjing Daqo Electric [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Zhenjiang Klockner-Moeller Electrical Systems Co., Ltd [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 236,415
Nanjing Daqo [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%			100.00%
Nanjing Daqo [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions			13,456,861	973,898
Nanjing Daqo [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions			13,456,861	2,921,693
Other Subsidiaries of Daqo Group [Member]
Related party balances:
Amounts due from related parties		78,888	54,644
Amounts due to related parties	[1]	221,441	118,873
Other Subsidiaries of Daqo Group [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		2,120,768	3,488,330	3,989,686
Other Subsidiaries of Daqo Group [Member] | Purchases of Raw Materials [Member]
Related Party Transaction [Line Items]
Purchases		129,219	22,817
Other Subsidiaries of Daqo Group [Member] | Proceeds From Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions				636
Other Subsidiaries of Daqo Group [Member] | Repayment of Interest Free Loans [Member]
Related Party Transaction [Line Items]
Other transactions			5,296
Nanjing Intelligent Apparatus Co., Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Nanjing Intelligent Apparatus Co., Ltd [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 93,841
Nanjing Intelligent Software Co., Ltd. [Member]
Related party balances:
Amounts due to related parties		$ 88,626
Nanjing Intelligent Software Co., Ltd. [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Daqo Investment Co., Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Shanghai Sailfar Electric Technology Co., Ltd. [Member]
Related party balances:
Amounts due to related parties		$ 9,804
Shanghai Sailfar Electric Technology Co., Ltd. [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Jiangsu Daquan High Voltage Switchgear Co Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		75.00%
Jiangsu Daqo Kai-fan Electric Co Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Zhenjiang Electric Equipment Co Ltd [Member]
Related party balances:
Amounts due to related parties		$ 85,332
Zhenjiang Electric Equipment Co Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Nanjing Daqo Transformer [Member]
Related party balances:
Amounts due to related parties		$ 1,022,075
Nanjing Daqo Transformer [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
Nanjing Daqo Transformer [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 1,410,655
Jiangsu Daqo ETE Electronic Systerm Co., Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		75.00%
Jiangsu Daqo ETE Electronic Systerm Co., Ltd [Member] | Purchases of Fixed Assets [Member]
Related Party Transaction [Line Items]
Purchases		$ 43,066
Jiangsu Daquan Kai-fan Switchgear Co., Ltd [Member] | Daqo Group [Member]
Related Party Transaction [Line Items]
Equity interest held		100.00%
[1]	The remaining balance of amount due to related party of $221,441 as of December 31, 2016 was comprised of Jiangsu Daqo, Zhenjiang Electric, Daqo Sailfar and Intelligent Software in the amount of $37,679, $85,332, $9,804 and $88,626 respectively.

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Numerator used in basic and diluted earnings per share:
Net income attributable to Daqo New Energy Corp. ordinary shareholders-basic and diluted	$ 43,493,756	$ 12,956,889	$ 16,649,176
Denominator used in basic and diluted earnings per share:
Weighted average number of ordinary shares outstanding used in computing earnings per share-basic	261,742,244	258,015,851	206,349,976
Plus: share options	3,075,511	3,396,082	5,003,667
Weighted average number of ordinary shares outstanding used in computing earnings per share-diluted	264,817,755	261,411,933	211,353,643
NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE-Basic	$ 0.17	$ 0.05	$ 0.08
NET INCOME ATTRIBUTABLE TO DAQO NEW ENERGY CORP. PER ORDINARY SHARE-Diluted	$ 0.16	$ 0.05	$ 0.08
Outstanding employee options excluded from computation of diluted earnings per share	10,899,141	12,563,541	6,154,166

COMMITMENTS AND CONTINGENCIES76

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital commitments:
Commitments outstanding for the purchase of property, plant and equipment	$ 4,700,000
Lease commitments:
Lease expense	1,024,970	$ 1,050,661	$ 1,071,287
2,017	991,142
2,018	991,142
2,019	961,538
Total	$ 2,943,822

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$ 229,101,211		$ 182,040,968	$ 182,571,852
Total Cost of revenue	148,672,693		144,491,083	139,308,511
Gross profit	$ 80,428,518		$ 37,549,885	$ 43,263,341
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	21.00%		51.00%	23.00%
Polysilicon [Member]
Segment Reporting Information [Line Items]
Revenue	$ 167,530,309		$ 125,916,457	$ 127,692,325
Wafer [Member]
Segment Reporting Information [Line Items]
Revenue	61,570,902		56,124,511	54,879,527
Operating Segments [Member] | Polysilicon [Member]
Segment Reporting Information [Line Items]
Revenue	196,219,102		149,401,821	157,117,208
Total Cost of revenue	125,320,832		121,193,840	119,703,550
Gross profit	70,898,270		28,207,981	37,413,658
Operating Segments [Member] | Wafer [Member]
Segment Reporting Information [Line Items]
Revenue	61,570,902		56,124,511	54,879,527
Total Cost of revenue	52,413,007		46,763,308	47,861,811
Gross profit	9,157,895		9,361,203	7,017,716
Elimination [Member]
Segment Reporting Information [Line Items]
Revenue	(28,688,793)		(23,485,364)	(29,424,883)
Total Cost of revenue	(29,061,146)		(23,466,065)	(28,256,850)
Gross profit	372,353		(19,299)
Elimination [Member] | Polysilicon [Member]
Segment Reporting Information [Line Items]
Revenue			(23,485,364)	(29,424,883)
Customer B [Member]
Segment Reporting Information [Line Items]
Revenue		[1]	19,595,911	18,210,196
Customer C [Member]
Segment Reporting Information [Line Items]
Revenue	48,739,001		35,094,472		[1]
Customer A [Member]
Segment Reporting Information [Line Items]
Revenue		[1]	20,465,558		[1]
Customer F [Member]
Segment Reporting Information [Line Items]
Revenue		[1]	$ 18,125,773	$ 23,882,302
[1]	Represents less than 10%

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) $ in Millions	Feb. 03, 2017	Dec. 31, 2016
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition		1 year 9 months
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 11.8
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	4 years
Share Incentive Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	12,653,992

FINANCIAL STATEMENT SCHEDULE I

FINANCIAL STATEMENT SCHEDULE I (BALANCE SHEET) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 15,987,478	$ 14,490,011	$ 7,068,483	$ 7,831,084
Prepaid expenses and other current assets	8,027,667	12,235,141
Total current assets	73,302,858	88,776,027
TOTAL ASSETS	656,708,076	660,851,404
CURRENT LIABILITIES
Accrued expenses and other current liabilities	8,320,041	8,616,831
Amount due to a related party	26,829,605	46,396,527
Income tax payable	5,300,163	940,732
Total current liabilities	249,750,421	275,393,602
EQUITY
Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2015 and 2016; 279,214,103 and 279,214,103 shares issued as of December 31, 2015 and 2016, respectively and 260,836,578 and 262,956,278 shares outstanding as of December 31, 2015 and 2016, respectively)	26,532	26,320
Additional paid in capital	240,111,533	236,358,070
Retained Earnings (accumulated deficit)	40,432,352	(3,061,404)
Accumulated other comprehensive income (loss)	(8,721,820)	8,780,313
Treasury stock	(1,748,836)	(1,748,836)
Total shareholders' equity	270,099,761	240,354,463
TOTAL LIABILITIES AND EQUITY	$ 656,708,076	$ 660,851,404
Ordinary shares:
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares issued	279,214,103	279,214,103
Ordinary shares, shares outstanding	262,956,278	260,836,578
Parent Company [Member]
CURRENT ASSETS
Cash and cash equivalents	$ 2,943,502	$ 2,563,083	$ 4,493,150	$ 5,187,046
Prepaid expenses and other current assets	223,559	193,583
Total current assets	3,167,061	2,756,666
Investments in subsidiaries	267,322,549	238,112,877
TOTAL ASSETS	270,489,610	240,869,543
CURRENT LIABILITIES
Accrued expenses and other current liabilities	389,849	406,088
Amount due to a related party
Income tax payable
Total current liabilities	389,849	515,080
EQUITY
Ordinary shares ($0.0001 per value 500,000,000 shares authorized as of December 31, 2015 and 2016; 279,214,103 and 279,214,103 shares issued as of December 31, 2015 and 2016, respectively and 260,836,578 and 262,956,278 shares outstanding as of December 31, 2015 and 2016, respectively)	26,532	26,320
Additional paid in capital	240,111,533	236,358,070
Retained Earnings (accumulated deficit)	40,432,352	(3,061,404)
Accumulated other comprehensive income (loss)	(8,721,820)	8,780,313
Treasury stock	(1,748,836)	(1,748,836)
Total shareholders' equity	270,099,761	240,354,463
TOTAL LIABILITIES AND EQUITY	$ 270,489,610	$ 240,869,543
Ordinary shares:
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares issued	279,214,103	279,214,103
Ordinary shares, shares outstanding	262,956,278	260,836,578

FINANCIAL STATEMENT SCHEDULE 80

FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OPERATING EXPENSES
Research and development	$ (4,001,438)	$ (923,664)	$ (1,486,978)
Total operating expenses	(14,978,848)	(11,325,195)	(11,228,385)
Income from operations	65,449,670	26,224,690	32,034,956
Interest income	407,996	493,995	324,118
Exchange gain	(7,422)	640,678	(55,792)
Income tax expense	(7,358,089)	(1,137,821)
Net income attributable to Daqo New Energy Corp. ordinary shareholders	43,493,756	12,956,889	16,649,176
Other comprehensive (loss) income:
Comprehensive income attributable to Daqo New Energy Corp. shareholders	25,991,623	1,700,019	12,987,163
Parent Company [Member]
OPERATING EXPENSES
General and administrative	(3,175,482)	(4,142,634)	(2,738,085)
Research and development			(12,310)
Total operating expenses	(3,175,482)	(4,142,634)	(2,750,395)
Income from operations	(3,175,482)	(4,142,634)	(2,750,395)
Interest income		1,641	8,144
Exchange gain		118,679
Income tax expense		(108,992)
Other income
NET LOSS BEFORE SHARE OF RESULTS OF SUBSIDIARIES	(3,175,482)	(4,131,306)	(2,742,251)
Equity in earnings of subsidiaries	46,669,238	17,088,195	19,391,427
Net income attributable to Daqo New Energy Corp. ordinary shareholders	43,493,756	12,956,889	16,649,176
Other comprehensive (loss) income:
Foreign currency translation adjustments	(17,502,133)	(11,256,870)	(3,662,013)
Total other comprehensive loss	(17,502,133)	(11,256,870)	(3,662,013)
Comprehensive income attributable to Daqo New Energy Corp. shareholders	$ 25,991,623	$ 1,700,019	$ 12,987,163

FINANCIAL STATEMENT SCHEDULE 81

FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CHANGES IN EQUITY) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 28, 2015	May 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Balance			$ 241,656,490	$ 206,768,070	$ 137,326,561
Net income			43,493,756	12,956,889	16,649,176
Share-based compensation			2,702,089	3,687,951	1,792,819
Option Exercised			$ 1,051,586	275,783	37,080
Option Exercised, shares			2,119,700
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively	$ 28,000,000	$ 54,600,000		27,996,959	54,624,447
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively,shares	38,500,000	50,000,000
Repurchase of Stock				$ (1,350,164)
Repurchase of Stock, shares				(2,356,900)
Capital injection from noncontrolling shareholders				$ 2,516,457
Balance			$ 271,728,922	241,656,490	206,768,070
Ordinary shares [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			$ 26,320	$ 22,358	$ 17,343
Balance, shares			260,836,578	223,577,853	173,427,853
Share-based compensation
Option Exercised			$ 212	$ 112	$ 15
Option Exercised, shares			2,119,700	1,115,625	150,000
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively				$ 3,850	$ 5,000
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively,shares				38,500,000	50,000,000
Repurchase of Stock
Repurchase of Stock, shares				(2,356,900)
Capital injection from noncontrolling shareholders
Balance			$ 26,532	$ 26,320	$ 22,358
Balance, shares			262,956,278	260,836,578	223,577,853
Treasury Stock [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			$ (1,748,836)	$ (398,672)	$ (398,672)
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock				(1,350,164)
Capital injection from noncontrolling shareholders
Balance			(1,748,836)	(1,748,836)	(398,672)
Additional paid in capital [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			236,358,070	203,125,494	146,676,163
Share-based compensation			2,702,089	3,687,951	1,792,819
Option Exercised			1,051,374	275,671	37,065
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively				27,993,109	54,619,447
Repurchase of Stock
Capital injection from noncontrolling shareholders				1,275,845
Balance			240,111,533	236,358,070	203,125,494
Retained earnings (accumulated losses) [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			(3,061,404)	(16,018,293)	(32,667,469)
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock
Capital injection from noncontrolling shareholders
Balance			40,432,352	(3,061,404)	(16,018,293)
Accumulated other comprehensive income (loss) [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			8,780,313	20,037,183	23,699,196
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock
Capital injection from noncontrolling shareholders
Balance			(8,721,820)	8,780,313	20,037,183
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			240,354,463	206,768,070	137,326,561
Net income			43,493,756	12,956,889	16,649,176
Other comprehensive loss			(17,502,133)	(11,256,870)	(3,662,013)
Share-based compensation			2,702,089	3,687,951	1,792,819
Option Exercised			1,051,586	275,783	37,080
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively				27,996,959	54,624,447
Repurchase of Stock				(1,350,164)
Capital injection from noncontrolling shareholders				1,275,845
Balance			270,099,761	240,354,463	206,768,070
Parent Company [Member] | Ordinary shares [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			$ 26,320	$ 22,358	$ 17,343
Balance, shares			260,836,578	223,577,853	173,427,853
Net income
Other comprehensive loss
Share-based compensation
Option Exercised			$ 212	$ 112	$ 15
Option Exercised, shares			2,119,700	1,115,625	150,000
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively				$ 3,850	$ 5,000
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively,shares				38,500,000	50,000,000
Repurchase of Stock
Repurchase of Stock, shares				(2,356,900)
Capital injection from noncontrolling shareholders
Balance			$ 26,532	$ 26,320	$ 22,358
Balance, shares			262,956,278	260,836,578	223,577,853
Parent Company [Member] | Treasury Stock [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			$ (1,748,836)	$ (398,672)	$ (398,672)
Net income
Other comprehensive loss
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock				(1,350,164)
Capital injection from noncontrolling shareholders
Balance			(1,748,836)	(1,748,836)	(398,672)
Parent Company [Member] | Additional paid in capital [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			236,358,070	203,125,494	146,676,163
Net income
Other comprehensive loss
Share-based compensation			2,702,089	3,687,951	1,792,819
Option Exercised			1,051,374	275,671	37,065
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively				27,993,109	54,619,447
Repurchase of Stock
Capital injection from noncontrolling shareholders				1,275,845
Balance			240,111,533	236,358,070	203,125,494
Parent Company [Member] | Retained earnings (accumulated losses) [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			(3,061,404)	(16,018,293)	(32,667,469)
Net income			43,493,756	12,956,889	16,649,176
Other comprehensive loss
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock
Capital injection from noncontrolling shareholders
Balance			40,432,352	(3,061,404)	(16,018,293)
Parent Company [Member] | Accumulated other comprehensive income (loss) [Member]
Condensed Financial Statements, Captions [Line Items]
Balance			8,780,313	20,037,183	23,699,196
Net income
Other comprehensive loss			(17,502,133)	(11,256,870)	(3,662,013)
Share-based compensation
Option Exercised
Follow-on equity offering, net of issuance costs of $3,375,553 and $2,033,041 for the year ended December 31,2014 and 2015 respectively
Repurchase of Stock
Capital injection from noncontrolling shareholders
Balance			$ (8,721,820)	$ 8,780,313	$ 20,037,183

FINANCIAL STATEMENT SCHEDULE 82

FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CHANGES IN EQUITY) (Parenthetical) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Follow-on equity offering, issuance costs	$ 2,033,041	$ 3,375,553

FINANCIAL STATEMENT SCHEDULE 83

FINANCIAL STATEMENT SCHEDULE I (STATEMENT OF CASH FLOWS) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Feb. 28, 2015	May 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OPERATING ACTIVITIES
Net (loss) income			$ 43,493,756	$ 12,956,889	$ 16,649,176
Share-based compensation			2,702,089	3,687,951	1,792,819
Adjustments to reconcile net income to net cash used in operating activities:
Prepaid expenses and other current assets			3,415,637	30,465	10,217,835
Amount due to a related party			1,815,307	2,178,445	(453,075)
Income tax payable			4,420,313	940,732
Net cash provided by operating activities			98,671,937	66,426,213	45,619,729
INVESTING ACTIVITIES
Disposition of minority interest in subsidiary				5,110,085
Net cash used in investing activities			(66,123,053)	(74,132,349)	(90,589,032)
FINANCING ACTIVITIES
Repurchase of ordinary shares				(1,350,164)
Proceeds from follow-on equity offering				30,030,000	58,000,000
Insurance cost for follow-on equity offering	$ (2,000,000)	$ (3,400,000)		(2,033,041)	(3,375,553)
Proceeds from options exercised			1,051,586	275,783	37,080
Net cash provided by (used in) financing activities			(30,279,523)	15,242,079	44,271,754
Net increase (decrease) in cash and cash equivalents			1,497,467	7,421,528	(762,601)
Cash and cash equivalents at the beginning of the year			14,490,011	7,068,483	7,831,084
Cash and cash equivalents at the end of the year			15,987,478	14,490,011	7,068,483
Parent Company [Member]
OPERATING ACTIVITIES
Net (loss) income			43,493,756	12,956,889	16,649,176
Share of results of subsidiaries			(46,669,238)	(17,088,195)	(19,391,427)
Share-based compensation			2,702,089	3,687,951	1,792,819
Adjustments to reconcile net income to net cash used in operating activities:
Prepaid expenses and other current assets			(29,976)	11,099	(27,195)
Changes in other current liabilities			(58,806)	(96,166)	(26,901)
Amount due to a related party				(286,526)	286,526
Income tax payable			(108,992)	108,992
Net cash provided by operating activities			(671,167)	(705,956)	(717,002)
INVESTING ACTIVITIES
Capital contributed to subsidiaries				(33,256,774)	(54,638,421)
Cash collected from subsidiaries when liquidation
Disposition of minority interest in subsidiary				5,110,085
Net cash used in investing activities				(28,146,689)	(54,638,421)
FINANCING ACTIVITIES
Repurchase of ordinary shares				(1,350,164)
Proceeds from follow-on equity offering				30,030,000	58,000,000
Insurance cost for follow-on equity offering				(2,033,041)	(3,375,553)
Proceeds from options exercised			1,051,586	275,783	37,080
Net cash provided by (used in) financing activities			1,051,586	26,922,578	54,661,527
Net increase (decrease) in cash and cash equivalents			380,419	(1,930,067)	(693,896)
Cash and cash equivalents at the beginning of the year			2,563,083	4,493,150	5,187,046
Cash and cash equivalents at the end of the year			$ 2,943,502	$ 2,563,083	$ 4,493,150