ACCOUNTS RECEIVABLE, NET-THIRD PARTIES

12 Months Ended

Dec. 31, 2012

ACCOUNTS RECEIVABLE, NET-THIRD PARTIES [Abstract]

ACCOUNTS RECEIVABLE, NET-THIRD PARTIES

6. ACCOUNTS RECEIVABLE, NET-THIRD PARTIES

	As of December 31,
	2011			2012
	RMB			RMB
Accounts receivables		1,779,953,029			2,386,356,664
Allowance for doubtful accounts		(179,746,165	)		(673,671,445	)
Accounts receivable, net		1,600,206,864			1,712,685,219

Movement of allowance of doubtful accounts

	As of December 31,
	2010			2011			2012
	RMB			RMB			RMB
At beginning of year		2,800,000	)		378,888			179,746,165
Addition		8,534,372			184,990,129			541,662,539
Write-off		(10,764,771	)		(24,140	)		-
Reversal		(190,713	)		(5,598,712	)		(47,737,259	)
At end of year		378,888			179,746,165			673,671,445

The Group assesses creditworthiness of customers before granting any credit terms. This assessment is primarily based on reviewing of customer's financial statements and historical collection records, discussion with customers' senior management, and reviewing of information provided by third parties, such as Dun & Bradstreet and the insurance company that ultimately insures the Group against customer credit default (Note 9). The significant increase of provisions for accounts receivable in 2012 is mainly due to the adverse economic development in solar industry, especially in Europe, resulting in the reduction in feed-in-tariffs in various countries and the decrease in debt financing available for the development of PV projects, as well as the shift in market practice towards increased use of credit sales and the longer credit terms, which in general would lead to higher risk of bad debts.