Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2019 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Nov 12, 2019
Slide 1: Q3 2019 Financial Results Presentation
November 12, 2019 Q3 2019 Financial Results Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “antici
Slide 3: A leading manufacturer of high-purity polysilicon for the global solar PV industry
“A leading manufacturer of high-purity polysilicon for the global solar PV industry” 2
Slide 4: Management remarks I
Management remarks I "We had an outstanding quarter in which we reached record-high production volume of 9,437 MT while achieving the lowest production cost in the Company’s history of $6.97/kg. Our results for the quarter reflect the full production capacity and cost structure that our original 35,
Slide 5: Management remarks II
Management remarks II “During the first three quarters of 2019, China installed approximately 16 GW of new solar PV projects, significantly below the market’s expectations. We believe the primary reason is the long-delayed announcement of a subsidy policy which has rippled downwards, forcing many pr
Slide 6: Operational and financial highlights in Q3 2019
Operational and financial highlights in Q3 2019 • Polysilicon production volume of 9,437 MT in Q3 2019, compared to 7,151 MT in Q2 2019 • Polysilicon sales volume of 9,238 MT in Q3 2019, compared to 7,130 MT in Q2 2019 • Polysilicon average total production cost(1) of $6.97/kg in Q3 2019, compared t
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2019 key facts Outlook ▪ Quarterly production volume of 9,437 MT ▪ Expected production volume in Q4 2019: ▪ External sales volume of 9,238 MT 14,000 ~ 15,000 MT ▪ Average total production cost : $6.97/kg ▪ Expected external sales volume in Q4 2019: ▪ Average
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 9,437 Production Volume (MT) 8,764 7,150 7,301 5,339 5,657 5,659 4,940 4,927 4,993 4,734 3,636 3,547 3,405 3,570 2,456 2,689 1,748 1,791 1,801 1,734 1,517 1,504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 2018 2019 Cash
Slide 9: Historical sales volume and Q3 2019 guidance
Historical sales volume and Q3 2019 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 12,500 ~13,500 $19.09 $17.68 $16.66 $16.19 $16.22 $14.96 $13.58 9,238 MT 8,450 MT $10.79 7,030 MT 7,130 MT 6,199 MT $9.69 $9.55 $9.10 5,411 MT $8.99 4,730 MT 4,49
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q3 2019 Q2 2019 Q3 2018 Revenues 83.9 66.0 67.4 Cost of revenues （65.8） (57.4) （54.5） Gross profit 18.1 8.6 12.8 Gross margin 21.5% 13.0% 19.1% SG&A （8.2） (7.8) （7.6） R&D expense （1.2） (1.5) （1.4） Other operating income 0.1 0.4 0.1 In
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 9/30/2019 6/30/2019 9/30/2018 Cash and cash equivalent 27.0 31.3 110.3 Restricted cash 41.2 48.4 2.9 Accounts receivable 0.1 0.1 0.001 Note receivables 4.3 9.4 22.5 Inventories 21.0 19.9 17.0 Prepaid land use rights 21.0 22.0 22.4 Net PP&E 883.
Slide 12: Cash flow summary
Cash flow summary 9 months ended 9 months ended ($ in millions) 9/30/ 2019 9/30/ 2018 Net cash provided by operating activities – continuing operations 99.5 48.7 Net cash provided by operating activities – discontinued operations 2.1 14.9 Net cash provided by operating activities 101.6 63.6 Net cash
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q3 2019 Q2 2019 Q3 2018 Net income /(loss) from continuing operations 4.9 (2.7) 4.2 Income tax expenses 1.6 0.7 (0.1) Interest expense 2.6 1.9 2.1 Interest income (0.2) (0.3) (0.3) Depreciation & amortization 10.9 10.6 8.9 EBITDA (1) 19.7 10.2 14.8 EBITDA marg
Slide 14: Use of Non-GAAP financial measures
Use of Non-GAAP financial measures To supplement Daqo New Energy’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most di
Slide 15: Thank you
@ DAQO NEW ENERGY Thank you