Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2024 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Results Presentation
October 30, 2024 Q3 2024 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” 3
Slide 4: Management Remarks
Management Remarks Mr. Xiang Xu, CEO of Daqo New Energy, commented, “Entering the third quarter, China solar industry’s market conditions remained challenging, exacerbated by the overall over-supply in the industry. Market selling prices continued to be below production costs for the majority of ind
Slide 5: Management Remarks – Continued
Management Remarks – Continued “During the third quarter, challenging market conditions forced more industry players to reduce production utilization rates and begin maintenance. Based on industry statistics, polysilicon supply in China decreased by 15% and 6% month-over-month in July and August, re
Slide 6: Management Remarks – Continued (2)
Management Remarks – Continued (2) “This year is challenging for China’s solar PV industry. At this point, we may have reached a cyclical bottom but have yet to see a clear turning point in the market. As the price wars have undermined the healthy development of the industry, on October 14, the Chin
Slide 7: Operational and Financial Highlights in Q3 2024
Operational and Financial Highlights in Q3 2024 • Polysilicon production volume was 43,592 MT in Q3 2024, compared to 64,961 MT in Q2 2024 • Polysilicon sales volume was 42,101 MT in Q3 2024 compared to 43,082 MT in Q2 2024 • Polysilicon average total production cost(1) was $6.61/kg in Q3 2024 compa
Slide 8: Polysilicon Facilities Update
Polysilicon Facilities Update Q3 2024 Key Figures Outlook Quarterly production volume: 43,592 MT Expected production volume in Q4 2023: Sales volume: 42,101 MT 31,000 ~ 34,000 MT Average selling prices: $4.69/kg Expected production volume in the full year of 2024: Average total productio
Slide 9: Polysilicon Manufacturing Overview
Polysilicon Manufacturing Overview Production Volume (MT) 64,961 61,01462,278 57,664 45,306 43,592 35,326 33,40133,70233,848 31,383 23,616 19,777 21,00820,18521,10221,684 18,09718,406 16,204 8,764 9,437 7,150 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 20
Slide 10: Quarterly Polysilicon Sales Volume and ASPs
Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 63,263 59,906 53,987 51,550 43,08242,101 38,83937,545 33,126 25,284 23,18621,471 23,400 21,06021,183 19,10118,881 13,291 13,643 11,642 8,450 7,130 9,238 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Income Statement Summary
Income Statement Summary Q3 2024 Q2 2024 Q3 2023 ($ in millions, unless otherwise stated) Revenues 198.5 219.9 484.8 Gross (loss)/profit (60.6) (159.2) 67.8 Gross margin (30.5%) (72.4%) 14.0% SG&A （ 37.7 ） (37.5) （ 89.7 ） R&D expense （ 0.8 ） (1.8) （ 2.8 ） (Loss)/income from operations (98.0) (195.6)
Slide 12: Balance Sheet Summary
Balance Sheet Summary As of As of As of ($ in millions) 9/30/2024 6/30/2024 9/30/2023 Cash, cash equivalent and restricted cash 853.4 997.5 3,280.8 Accounts and notes receivables 84.5 80.7 275.8 Short-term investments 245.0 219.5 2.7 Inventories 206.9 192.0 129.1 Prepaid land use rights 159.9 155.2
Slide 13: Cash Flow Summary
Cash Flow Summary 9 months ended 9 months ended ($ in millions) 9/30/2024 9/30/2023 Net (loss)/income (206.6) 574.7 Adjustments to reconcile net income to net cash provided by operating 395.6 235.3 activities Changes in operating assets and liabilities (565.4) 687.4 Net cash (used in)/provided by op
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands 3 months Ended Sep. 30, 2024 Jun. 30, 2024 Sep. 30, 2023 Net (loss)/income (76,930) (157,863) 17,843 Income tax (benefit)/expense (12,007) (23,283) 21,438 Interest income, net (1,604) (8,730) (13,832) Depreciation & Amortization 56,218 44,958 44,765 EBITDA (non
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 Thank you!