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RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 31, 2012
Name and Relationships with Related Parties

Name and Relationship with Related Parties

 

Name of related party

   

Relationship with the Group

Hanwha Chemical

   

Holding company of Hanwha Solar

Hanwha L&C Trading (Shanghai) Co., Ltd. (“Hanwha L&C”)

   

A wholly-owned subsidiary of Hanwha Chemical

Hanwha L&C Corporation

   

A wholly-owned subsidiary of Hanwha Chemical

Hanwha L&C Canada Inc.

   

A wholly-owned subsidiary of Hanwha Chemical

Hanwha International LLC. (“Hanwha International”)

   

A wholly-owned subsidiary of Hanwha Chemical

Hanwha Chemical Trading (Shanghai) Co., Ltd (“Hanwha Chemical Trading”)

   

A wholly-owned subsidiary of Hanwha Chemical

Hanwha Q.Cells GmbH (“Q.Cells”) (previously known as Q-Cells SE)*

   

A wholly-owned subsidiary of Hanwha Chemical

Ya An Yongwang Silicon Co., Ltd. (“Ya An”)

   

A wholly-owned subsidiary of HongKong YongWang Silicon Investment Co., Ltd., whose significant shareholder is Hanwha Chemical

Hanwha Corporation

   

Holding company of Hanwha Chemical

Hanwha TechM Co., Ltd. (“Hanwha TechM”)

   

A wholly-owned subsidiary of Hanwha Corporation

Hanwha Europe GmbH (“Hanwha Europe”)

   

A wholly-owned subsidiary of Hanwha Corporation

Hanwha Japan Co., Ltd. (“Hanwha Japan”)

   

A wholly-owned subsidiary of Hanwha Corporation

Food1st Food Culture Co., Ltd. (“Food1st”)

   

A wholly-owned subsidiary of Hanwha Corporation

Hanwha 63 City C., Ltd. (“Hanwha 63 City”)

   

A wholly-owned subsidiary of Hanwha Life Insurance Co.,Ltd., whose significant shareholder is Hanwha Corporation

Hanwha Q CELLS Korea Corp. (“Hanwha Solarenergy”) (previously known as Hanwha SolarEnergy Co., Ltd)

   

A subsidiary of Hanwha Corporation

Komodo Enterprise Inc. (“Komodo”)

   

A significant shareholder is Hanwha Solarenergy

Hanwha S&C Co., Ltd. (“Hanwha S&C”)

   

A company controlled by Hanwha Corporation

Hancomm, Inc. (“Hancomm”)

   

A company whose significant shareholder is Hanwha S&C

Linyang Electronics Co., Ltd. (“Linyang Electronics”)**

   

Controlling owner was also a significant shareholder of the Company

Qidong Huahong Electronics Co., Ltd. (“Qidong Huahong”)**

   

Controlling owner was also a significant shareholder of the Company

Nantong Huahong Ecological Gardening Co., Ltd. (“Nantong Huahong”)**

   

Controlling owner was also a significant shareholder of the Company

Nantong Linyang Labor Service Company (“Linyang Labor Service”)**

   

Controlling owner was also a significant shareholder of the Company

Q-Cells International GmbH (“QCI”)**

   

Controlling owner was also a significant shareholder of the Company

SMIC Energy Technology (Shanghai) Corporation (“SMIC ET”)***

   

A wholly owned subsidiary of Semiconductor Manufacturing International Corporation (“SMIC”) where David N.K. Wang, one of the Company’s independent directors, served as president and chief executive officer

Semiconductor Manufacturing International (Shanghai) Corporation (“SMIC Shanghai”) ***

   

A wholly owned subsidiary of SMIC where David N.K. Wang, one of the Company’s independent directors, served as president and chief executive officer

 

*

Before September 16, 2010, Q.Cells was a related party of the Group because its controlling owner was also a significant shareholder of the Company. Subsequent to the completion of share transfer on September 16, 2010 (Note 26), Q.Cells ceased to be a related party to the Group. On October 24, 2012, as a result of Hanwha Chemical acquiring a 100% interest in Q.Cells from its original shareholders, Q.Cells became as a related party.

 

**

Subsequent to the completion of share transfer on September 16, 2010 (Note 26), these companies ceased to be related parties to the Group.

 

***

Subsequent to David N.K. Wang’s resignation from SMIC in July 2011, these companies ceased to be related parties of the Group.
Significant Related Party Transactions and Balances

The Group had the following significant related party transactions and balances during the years presented:

 

     For the year ended December 31,  
     2010      2011      2012      2012  
     (RMB’000)      (RMB’000)      (RMB’000)      (US$’000)  

Advance paid to related parties:

            

- Hanwha TechM

      —         —         6,545         1,051   

- Ya An

      367,619         108,446         —         —   

- Hanwha Chemical

      7,679         76,436         —         —   

- Hanwha L&C

      —         43,481         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     375,298         228,363         6,545         1,051   
  

 

 

     

 

 

     

 

 

     

 

 

  

Purchase of raw materials from:

            

- Hanwha L&C

      1,142         63,129         68,792         11,042   

- Hanwha L&C Corporation

      —         —         63,241         10,151   

- Hanwha International

      —         —         10,358         1,663   

- Ya An

      339,122         116,943         6,440         1,034   

- Q.Cells

      —         —         4,080         655   

- Hanwha Chemical

      1,883         86,735         —         —   

- Linyang Electronics

      79,187         —         —         —   

- SMIC ET

      4,602         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     425,936         266,807         152,911         24,545   
  

 

 

     

 

 

     

 

 

     

 

 

  

Purchase of services from:

            

- Food1st

      —         8,177         27,147         4,357   

- Hancomm

      —         27,235         14,993         2,407   

- Hanwha S&C

      —         5,876         2,246         361   

- Hanwha Solarenergy

      —         570         —         —   

- SMIC Shanghai

      1,801         —         —         —   

- Linyang Electronics

      680         —         —         —   

- Linyang Labor Service

      889         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     3,370         41,858         44,386         7,125   
  

 

 

     

 

 

     

 

 

     

 

 

  

Purchase of fixed assets from:

            

- Hanwha TechM

      —         30,026         3,586         576   

- SMIC ET

      33,662         —         —         —   

- Linyang Electronics

      1,510         —         —         —   

- Nantong Huahong

      990         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     36,162         30,026         3,586         576   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31,  
     2010      2011      2012      2012  
     (RMB’000)      (RMB’000)      (RMB’000)      (US$’000)  

Sales of products to:

            

- Hanwha Solarenergy

      —         87,702         281,252         45,144   

- Hanwha Corporation

      —         468,381         250,012         40,130   

- Hanwha Japan

      —         67         248,047         39,814   

- Hanwha Europe

      —         228         147,582         23,688   

- Hanwha International

      —         —         82,549         13,250   

- Komodo

      —         —         29,298         4,703   

- Hanwha Chemical Trading

      —         —         125         20   

- Hanwha Chemical

      —         24,106         62         10   

- Hanwha 63 City

      —         3,367         —         —   

- Q.Cells

      442,832         —         —         —   

- QCI

      32,924         —         —         —   

- Others

      —         6         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     475,756         583,857         1,038,927         166,759   
  

 

 

     

 

 

     

 

 

     

 

 

  

Buildings leased from:

            

- SMIC Shanghai

      1,229         4,291         —         —   

- Linyang Electronics

      2,856         —         —         —   

- Qidong Huahong

      1,368         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
     5,453         4,291         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
Balances with Related Parties

As of December 31, 2011 and 2012, balances with related parties are comprised of the following:

 

     As of December 31,  
     2011      2012      2012  
     (RMB’000)      (RMB’000)      (US$’000)  

Amount due from related parties-net:

         

- Hanwha Solarenergy

      51,881         137,288         22,036   

- Hanwha Japan

      67         130,008         20,868   

- Hanwha Europe

      186         94,215         15,123   

- Komodo

      —         23,101         3,708   

- Hanwha Corporation

      153,956         15,312         2,458   

- Hanwha International

      —         14,844         2,383   

- Hanwha Chemical

      6,344         4,868         781   

- Hancomm

      885         884         142   

- Others

      —         90         14   

- Ya An*

      20,000         —         —   

- Hanwha L&C

      8,134         —         —   
  

 

 

     

 

 

     

 

 

  
     241,453         420,610         67,513   
  

 

 

     

 

 

     

 

 

  

 

*

In the year ended December 31, 2012, the Group provided full provision of RMB15,960,000 (US$2,561,757) for the advanced payment to Ya An, due to the liquidation of Ya An during 2012.

 

     As of December 31,  
     2011      2012      2012  
     (RMB’000)      (RMB’000)      (US$’000)  

Amount due to related parties:

         

- Hanwha L&C Corporation

      —         49,207         7,898   

- Q.Cells

      —         6,388         1,025   

- Hanwha Chemical

      5,911         4,475         718   

- Hanwha L&C

      29,326         3,682         591   

- Hanwha International

      —         2,241         360   

- Hancomm

      411         2,016         324   

- Hanwha S&C

      560         1,738         279   

- Hanwha L&C Canada Inc.

      —         1,349         217   

- Hanwha TechM

      5,986         717         115   

- Food1st

      —         232         37   

- Hanwha Europe

      148         —         —   
  

 

 

     

 

 

     

 

 

  
     42,342         72,045         11,564