Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2022 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Aug 3, 2022
Slide 1: Q2 2022 Financial Results Presentation
August 3, 2022 Q2 2022 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 Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “We are very proud to deliver an excellent quarter with record production volume and profits. Revenue reached $1.24 billion, gross profit was $947 million with gross margin of 76%. Net income attributable to Daqo shareholders
Slide 5: Management remarks II
Management remarks II “In June 2022, our major operating subsidiary, Xinjiang Daqo, received the total gross proceeds of approximately RMB11 billion from its private offering on the Shanghai Stock Exchange. Upon completion of the private offering, Daqo New Energy beneficially owns approximately 72.6
Slide 6: Management remarks III
Management remarks III “In June, our board of directors authorized the Company to repurchase up to US$120 million worth of its own issued shares on the open market. As of today, we have already repurchased approximately $50 million worth of our ADRs and we will continue to do so as we believe our cu
Slide 7: Operational and financial highlights in Q2 2022
Operational and financial highlights in Q2 2022 Polysilicon production volume was 35,326 MT in Q2 2022, compared to 31,383 MT in Q1 2022 Polysilicon sales volume was 37,545 MT in Q2 2022, compared to 38,839 MT in Q1 2022 Polysilicon average total production cost(1) was $7.26/kg in Q2 2022, com
Slide 8: Polysilicon facilities update
Polysilicon facilities update Q2 2022 key facts Outlook § Quarterly production volume: 35,326 MT § Expected production volume in Q3 2022: § External sales volume: 37,545 MT 31,000 ~ 32,000 MT § Average total production cost : $7.26/kg § Expected production volume in the full year of 2022: § Average
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) 35,326 31,383 23,616 21,684 21,102 21,008 19,777 20,185 18,406 18,097 16,204 8,764 9,437 7,301 7,150 4,927 4,993 4,940 5,339 5,657 5,659 4,734 3,405 3,570 3,636 2,456 Q1 2016 Q3 Q1 2017 Q3 Q1 2018 Q3 Q1 2019 Q3 Q1 2020 Q3 Q1 2021 Q3 Q1 2022 C
Slide 10: Quarterly polysilicon sales volume and ASPs
Quarterly polysilicon sales volume and ASPs Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 45,000 $33.91 $33.08 $32.76 40,000 38,839 37,545 $27.55 35,000 30,000 $20.81 $19.09 25,000 $17.68 23,186 21,471 21,183 $16.66 $16.19 $16.22 21,060 19,101 20,000 $1
Slide 11: Income statement summary
Income statement summary Q2 2022 Q1 2022 Q2 2021 ($ in millions, unless otherwise stated) Revenues 1,244.1 1,280.3 441.4 Gross profit 946.9 813.6 303.2 Gross margin 76.1% 63.5% 68.7% SG&A (14.4) (15.5) (9.3) R&D expense (2.7) (2.1) (2.1) Income from operations 927.6 796.9 292.4 Net income attributab
Slide 12: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 6/30/2022 3/31/2022 6/30/2021 Cash, cash equivalent and restricted cash 3,284.3 1,127.7 269.7 Note receivables 1,269.3 1,499.4 97.0 Short-term investments 11.4 10.4 10.4 Inventories 52.3 100.3 33.8 Prepaid land use rights 38.2 40.6 37.0 Propert
Slide 13: Cash flow summary
Cash flow summary 6 months ended 6 months ended ($ in millions) 6/30/ 2022 6/30/ 2021 Net income 1,447.5 330.1 Adjustments to reconcile net income to net cash provided by operating 67.1 44.1 activities Changes in operating assets and liabilities (386.8) 68.1 Net cash provided by operating activities
Slide 14: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q2 2022 Q1 2022 Q2 2021 Net income 780.5 667.1 242.9 Income tax expenses 143.5 129.9 43.1 Interest expense, net 3.7 1.5 6.4 Depreciation & amortization 27.8 28.4 19.3 EBITDA (1) 955.4 826.8 311.7 EBITDA margin (1) 76.8% 64.6% 70.6% Note: (1) A non-GAAP measure
Slide 15: 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 16: Thank you
@ DAQO NEW ENERGY Hit Ht | Thank you