Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2018 Earnings Presentation
18 slides from Daqo New Energy's earnings presentation, August 2018
Slide 1: Q2 2018 Financial Results Presentation
August 2018 Q2 2018 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 producer of high-purity polysilicon for the global solar PV industry
“A leading producer of high-purity polysilicon for the global solar PV industry” 2
Slide 4: Management remarks
Management remarks “We remain confident in the long-term sustainable growth of the polysilicon industry despite the impact by the new solar PV policies issued by the Chinese government on May 31, 2018,” commented Mr. Longgen Zhang, CEO of Daqo New Energy. “The new solar policies caused uncertainty i
Slide 5: Business update and Q2 2018 highlights
Business update and Q2 2018 highlights Polysilicon production volume of 5,659 MT in Q2 2018, compared to 5,657 MT in Q1 2018 Polysilicon external sales volume (2) of 3,881 MT in Q2 2018, compared to 5,411 MT in Q1 2018 Polysilicon Cost Structure (1) -- total production cost (including deprecia
Slide 6: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q2 2018 key facts Outlook Quarterly production volume of 5,659 MT Expected production volume in Q3 2018: External sales volume of 3,881 MT(1) 4,100 ~ 4,300 MT (scheduled maintenance in Sept. Average total production cost : $9.05/kg (2) expected to impac
Slide 7: Daqo's quarterly polysilicon Average Selling Prices
Daqo’s quarterly polysilicon Average Selling Prices Quarterly Polysilicon ASPs($/kg) $21.63 $22.04 $21.50 $20.47 $18.67 $19.09 $17.98 $18.09 $17.24 $17.68 $16.71 $16.66 $16.19 $16.22 $15.95 $15.64 $14.98 $14.96 $13.86 $13.72 $13.58 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 5,659 5,657 Production Volume (MT) 5,339 4,927 4,993 4,940 3,547 3,405 3,570 3,636 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 2017 2018 2018 Cash cost and Deprec
Slide 9: Phase 3B Project accelerated – fully ramp up to 30K MT in Q1 2019
Phase 3B Project accelerated – fully ramp up to 30K MT in Q1 2019 Polysilicon capacity expansion in Daqo Xinjiang (cumulative capacity) 30,000 MT 18,000 MT 12,150 MT 5,000 MT 6,150 MT 2013 2014 2H 2015 1Q 2017 2019E Expect to start pilot production by the end of 2018 and reach 30,000 MT full annua
Slide 10: Chongqing wafer facilities update
Chongqing wafer facilities update Q2 2018 key facts Q3 2018 sales volume outlook 9.8 million pieces sold to customers Q3 2018 wafer sales volume: 7.0 ~8.0 million pieces 9
Slide 11: Historical external sales volume and Q2 2018 guidance
Historical external sales volume and Q2 2018 guidance Polysilicon external sales volume and ASPs Wafer external sales volume (million pieces) $19.09 $17.68 $16.66 $16.19 $16.22 $14.96 5,900 $13.58 ~ 6,100 27.0 26.4 5,411 22.4 22.3 4,730 21.3 4,497 4,500 4,223 3,881 13.3 2,209 9.8 7.0 ~ 8.0 Q4 2016 Q
Slide 12: Q2 2018 financial highlights
Q2 2018 financial highlights • Revenue of $67.0 million in Q2 2018, compared to $103.3 million in Q1 2018 • Gross profit of $27.2 million in Q2 2018, compared to $46.2 million in Q1 2018 • Gross margin was 40.6% in Q2 2018, compared to 44.8% in Q1 2018 • Non-GAAP gross margin(3) of 41.2% in Q2 2018,
Slide 13: Income statement summary
Income statement summary ($ in millions, unless otherwise stated)/ Q2 2018 Q1 2018 Q2 2017 Revenues 67.0 103.3 76.0 Cost of revenues (39.8) (57.1) (51.8) Gross profit 27.2 46.2 24.2 Gross margin 40.6% 44.8% 31.9% Non-GAAP Gross margin (1) 41.2% 45.2% 32.6% SG&A and R&D expense (8.0) (4.9) (4.8) Othe
Slide 14: Non-GAAP reconciliation
Non-GAAP reconciliation ($ in millions) Q2 2018 Q1 2018 Q2 2017 Net income 13.6 32.0 12.3 Income tax expenses 4.4 5.9 2.8 Interest expense 3.4 4.1 5.3 Interest income (0.4) (0.2) (0.1) Depreciation & Amortization 10.0 9.9 9.6 EBITDA (1) 31.0 51.7 29.8 EBITDA margin (1) 46.3% 50.0% 39.2% Gross profit
Slide 15: Balance sheet summary
Balance sheet summary As of As of Change As of ($ in millions) 6/30/2018 3/31/2018 (Q2 2018 vs. Q1 2018) 6/30/2017 Cash, cash equivalent and restricted cash 179.3 83.0 96.3 49.8 Accounts receivable 0.3 2.0 (1.7) 3.8 Note receivables 19.3 49.7 (30.4) 10.5 Inventories 33.7 19.5 14.2 16.0 Prepaid land
Slide 16: Cash flow summary
Cash flow summary 6 months ended 6 months ended ($ in millions) 6/30/ 2018 6/30/ 2017 Net cash provided by operating activities 67.1 73.6 Net cash (used in) investing activities (52.5) (32.9) Net cash (used in) provided by financing 93.2 (23.4) activities Effect of exchange rate changes (1.2) (2.8)
Slide 17: Use of Non-GAAP financial measures
Use of Non-GAAP financial measures To supplement Daqo’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 directly comp
Slide 18: Thank you
@ DAQO NEW ENERGY Thank you