Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2020 Earnings Presentation
14 slides from Daqo New Energy's earnings presentation, Nov 23, 2020
Slide 1: Q3 2020 Financial Results Presentation
November 23, 2020 Q3 2020 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
Management remarks “During the third quarter of 2020, we successfully completed the annual maintenance and several technology improvement projects at our polysilicon manufacturing facilities. We resumed full production in August with excellent operational results. For the third quarter, we produced
Slide 5: Operational and financial highlights in Q3 2020
Operational and financial highlights in Q3 2020 • Polysilicon production volume was 18,406 MT in Q3 2020, compared to 18,097 MT in Q2 2020 • Polysilicon sales volume was 13,643 MT in Q3 2020, compared to 18,881 MT in Q2 2020 • Polysilicon average total production cost (1) was $5.82/kg in Q3 2020, co
Slide 6: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2020 key facts Outlook ▪ Quarterly production volume of 18,406 MT ▪ Expected production volume in Q4 2020: ▪ External sales volume of 13,643 MT 19,500 ~ 20,500 MT ▪ Average total production cost : $5.82/kg ▪ Expected external sales volume in Q4 2020: ▪ Avera
Slide 7: Polysilicon manufacturing overview
Polysilicon manufacturing overview 19,777 18,406 18,097 Production Volume (MT) 16,204 9,437 8,764 7,301 7,150 5,657 5,339 5,659 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 1,734 2,689 2,456 1,748 1,791 1,801 1,504 1,517 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 8: Historical sales volume and Q4 2020 guidance
Historical sales volume and Q4 2020 guidance Polysilicon external sales volume and ASPs 20,500 Polysilicon external sales volume (MT) ASP ($/kg) ~ 21,500 0,000 $19.09 8,000 $17.68 $16.66 $16.19 $16.22 6,000 4,000 $13.58 2,000 $10.79 $9.69 $9.55 $9.10 $9.13 0,000 $8.99 $8.77 $8.79 $7.04 8,000 6,000 1
Slide 9: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q3 2020 Q2 2020 Q3 2019 Revenues 125.5 133.5 83.9 Cost of revenues (80.3) (110.8) (65.8) Gross profit 45.2 22.7 18.1 Gross margin 36.0% 17.0% 21.5% SG&A (9.2) (10.1) (8.2) R&D expense (1.7) (2.0) (1.2) Other operating income / (expens
Slide 10: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 9/30/2020 6/30/2020 9/30/2019 Cash and cash equivalent 70.2 88.2 27.0 Restricted cash 39.6 27.6 41.2 Accounts receivable 0.1 0.1 0.1 Notes receivable 1.9 8.2 4.3 Inventories 53.6 26.8 21.0 Net PP&E 987.3 956.7 883.1 Prepaid land use rights 29.8
Slide 11: Cash flow summary
Cash flow summary 9 months ended 9 months ended ($ in millions) 9/30/ 2020 9/30/ 2019 Net cash provided by operating activities – continuing operations 71.2 99.5 Net cash (used in) / provided by operating activities – discontinued (0.05) 2.1 operations Net cash provided by operating activities 71.1
Slide 12: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q3 2020 Q2 2020 Q3 2019 Net income 21.9 2.4 4.9 Income tax expenses 6.2 2.0 1.6 Interest expense 5.4 6.7 2.6 Interest income (0.2) (0.4) (0.2) Depreciation & amortization 18.3 16.0 10.9 EBITDA (1) 51.6 26.8 19.7 EBITDA margin (1) 41.1% 20.0% 23.5% Share-based
Slide 13: 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 14: Thank you
@ DAQO NEW ENERGY Thank you