Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q1 2018 Earnings Presentation
19 slides from Daqo New Energy's earnings presentation, May 2018
Slide 1: Q1 2018 Financial Results Presentation
May 2018 Q1 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 I
Management remarks I “I am pleased to announce another excellent quarter of operational and financial results in which we produced a record high 5,657 MT in polysilicon,” commented Mr. Longgen Zhang, CEO of Daqo New Energy. “We also broke our record for external sales volume during the quarter by sh
Slide 5: Management remarks II
Management remarks II “We are also pleased to announce the next stage in our capacity expansion plan which compliments Phase 3B. Phase 4A will increase our annual polysilicon capacity by 35,000 MT bringing total annual capacity to 65,000 MT by the first quarter of 2020. Design and construction of th
Slide 6: Business update and Q1 2018 highlights
Business update and Q1 2018 highlights Polysilicon production volume of 5,657 MT in Q1 2018, increasing from 5,339 MT in Q4 2017 Polysilicon external sales volume (2) of 5,411 MT in Q1 2018, increasing from 4,730 MT in Q4 2017 Polysilicon Cost Structure (1) -- total production cost (including
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q1 2018 key facts Outlook Record-high quarterly production volume of 5,657 MT Expected production volume in Q2 2018: Record-high external sales volume of 5,411 MT(1) 5,600 ~ 5,800 MT Average total production cost : $9.19/kg (2) Expected external sales
Slide 8: Daqo's quarterly polysilicon Average Selling Prices
Daqo’s quarterly polysilicon Average Selling Prices Quarterly Polysilicon ASPs($/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 $15.95 $15.64 $14.98 $14.96 $13.86 $13.72 $13.58 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview 5,657 Production Volume (MT) 5,339 4,927 4,993 4,940 3,547 3,405 3,570 3,636 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 Cash cost and Depreciation ($/kg)*
Slide 10: 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 11: Chongqing wafer facilities update
Chongqing wafer facilities update Q1 2018 key facts Q2 2018 sales volume outlook 13.3 million pieces sold to customers Q2 2018 wafer sales volume: 15.0 ~20.0 million pieces 10
Slide 12: 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 $14.96 $13.58 27.0 5,300 26.4 5,411 ~ 5,500 22.4 22.3 4,730 21.3 4,497 4,500 15.0 4,223 ~ 20.0 13.3 2,209 Q4 2016 Q1 2017 Q2 2017
Slide 13: Q1 2018 financial highlights
Q1 2018 financial highlights Revenue of $103.3 million in Q1 2018, compared to $103.7 million in Q4 2017 Gross profit of $46.2 million in Q1 2018, compared to $46.9 million in Q4 2017 Gross margin of 44.8% in Q1 2018, compared to 45.2% in Q4 2017 Non-GAAP gross margin(1) of 45.2% in Q1 2018,
Slide 14: Income statement summary
Income statement summary ($ in millions, unless otherwise stated)/ Q1 2018 Q4 2017 Q1 2017 Revenues 103.3 103.7 83.8 Cost of revenues (57.1) (56.8) (47.9) Gross profit 46.2 46.9 35.9 Gross margin 44.8% 45.2% 42.8% Non-GAAP Gross margin (1) 45.2% 45.6% 44.0% SG&A and R&D expense (4.9) (4.7) (4.5) Oth
Slide 15: Non-GAAP reconciliation
Non-GAAP reconciliation ($ in millions) Q1 2018 Q4 2017 Q1 2017 Net income 32.0 34.1 23.2 Income tax expenses 5.9 5.6 4.7 Interest expense 4.1 4.1 4.3 Interest income (0.2) (0.2) (0.1) Depreciation & Amortization 9.9 10.0 9.6 EBITDA (1) 51.7 53.6 41.7 EBITDA margin (1) 50.0% 51.7% 49.8% Gross profit
Slide 16: Balance sheet summary
Balance sheet summary As of As of Change As of ($ in millions) 3/31/2018 12/31/2017 (Q1 2018 vs. Q4 2018) 3/31/2017 Cash, cash equivalent and restricted cash 83.0 72.7 10.3 61.2 Accounts receivable 2.0 3.0 (1.0) 13.1 Note receivables 49.7 27.3 22.4 11.7 Inventories 19.5 19.6 (0.1) 16.3 Prepaid land
Slide 17: Cash flow summary
Cash flow summary 3 months ended 3 months ended ($ in millions) 3/31/ 2018 3/31/ 2017 Net cash provided by operating activities 22.0 28.6 Net cash (used in) investing activities (11.8) (16.0) Net cash (used in) provided by financing (2.4) 16.5 activities Effect of exchange rate changes 2.6 0.1 Net i
Slide 18: 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 19: Thank you
@ DAQO NEW ENERGY Thank you