ACCOUNTS RECEIVABLE, NET-THIRD PARTIES

6 Months Ended

Jun. 30, 2017

ACCOUNTS RECEIVABLE, NET-THIRD PARTIES [Abstract]

ACCOUNTS RECEIVABLE, NET-THIRD PARTIES

9. ACCOUNTS RECEIVABLE, NET—THIRD PARTIES

	2016		2017
	December 31		June 30
	RMB		RMB
Accounts receivables		5,130,289,380		6,773,694,402
Allowance for doubtful accounts		(376,574,061)		(303,174,634)
Accounts receivable, net		4,753,715,319		6,470,519,768

As of December 31, 2016 and June 30, 2017, accounts receivable with net book value of nil and RMB175,000,000 were pledged as collateral for the Group’s borrowings (Note 21).

 

Movement of allowance of doubtful accounts

	For the six months ended June 30
	2016		2017
	RMB		RMB
At beginning of year		335,713,383		376,574,061
Addition		152,906,748		36,619,918
Write-off		-		9,718,086
Reversal		(78,212,449)		(119,737,431)
At end of year		410,407,682		303,174,634

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.

The significant bad debt reversal represents the cash collection of the fully reserved long-term receivables. The Company made bad debt provisions for certain long-term receivables in prior years which were in line with the adverse economic environment in solar industry. With the recovery of solar industry since 2013, the Company made its best effort to improve the cash collection for the long-aged accounts receivables. The cash received was recorded as the reversal of prior year bad debt allowance.