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ADVANCES TO SUPPLIERS, NET - THIRD PARTY
12 Months Ended
Dec. 31, 2014
ADVANCES TO SUPPLIERS, NET - THIRD PARTY [Abstract]  
ADVANCES TO SUPPLIERS, NET - THIRD PARTY

9. ADVANCES TO SUPPLIERS, NET – THIRD PARTY

 

As of December 31,
2013   2014  
RMB   RMB  
Advances to suppliers - current 74,047,190       87,647,202  
Advances to suppliers - noncurrent     223,043,440       -  
Total     297,090,630       87,647,202  
Provision for advances to suppliers     (227,073,440 )     (6,724,857
Advances to suppliers, net     70,017,190       80,922,345  

 

The Group's advance payments to suppliers with purchase contracts with term of more than one year were made to two major suppliers, Hoku Materials, Inc. ("Hoku"), a fully owned subsidiary of Hoku Corporation (formerly known as "Hoku Scientific, Inc.") and Wuxi ZhongCai Technologies Co., Ltd., ("Wuxi Zhongcai") respectively in 2012. The Group previously entered into long-term polysilicon supply agreements with each of Hoku and Wuxi Zhongcai. As a result of continuing significant decline in the polysilicon purchase price and the adverse developments in those suppliers' operations during 2012, including the suspension of their productions, the Group made full provision of RMB223,043,440 for the full outstanding balances of inventory purchase prepayment made to those two suppliers under long-term polysilicon supply contracts during the year ended December 31, 2012. The Group wrote off the provision of RMB223,043,440 during the year ended December 31, 2014. The Company recorded provisions of nil and RMB2,694,857 for the years ended December 31, 2013 and 2014, respectively.

 

As of December 31, 2013 and 2014, advances to suppliers with term of less than 1 year mainly represent payments for procurement of recoverable silicon materials, virgin polysilicon and solar cells and the Group has delivery plan with the respective suppliers to receive the materials in the next twelve months.