Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2021 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Aug 18, 2021
Slide 1: Q2 2021 Financial Results Presentation
August 18, 2021 Q2 2021 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 “We are very excited to report an excellent quarter with strong revenue growth and better-than-expected profitability, as the Company achieved record-high production volume, gross profit, and net income. With the global focus on addressing the climate challenge with plans to rea
Slide 5: Management remarks II
Management remarks II “On the policy front, during the Politburo Central Committee meeting on July 30 regarding economic activity in the second half of 2021, with China’s President Mr. Xi Jinping presiding over the meeting, the central government reiterated the urgency for national coordination on p
Slide 6: Operational and financial highlights in Q2 2021
Operational and financial highlights in Q2 2021 • Polysilicon production volume was 21,102 MT in Q2 2021, compared to 20,185 MT in Q1 2021 • Polysilicon sales volume was 21,060 MT in Q2 2021, compared to 21,471 MT in Q1 2021 • Polysilicon average total production cost (1) was $6.31/kg in Q2 2021, co
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q2 2021 key facts Outlook ▪ Quarterly production volume: 20,102 MT ▪ Expected annual production volume in 2021: ▪ External sales volume: 21,060 MT 83,000 ~ 85,000 MT ▪ Average total production cost : $6.31/kg ▪ Average cash cost: $5.41/kg Polysilicon historical
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 21,008 21,102 19,777 20,185 Production Volume (MT) 18,097 18,406 16,204 9,437 8,764 7,301 7,150 5,339 4,993 4,940 5,657 5,659 4,927 4,734 3,636 3,5473,405 3,570 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 9: Historical sales volume and Q3 2021 guidance
Historical sales volume and Q3 2021 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 21,060 25,000 $20.81 23,186 $19.09 21,471 $17.68 $16.66 $16.19 $16.22 20,000 19,101 18,881 $13.58 $11.90 15,000 $10.79 13,643 $10.79 13,291 $9.69 $9.55 $9.10 $9.1
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q2 2021 Q1 2021 Q2 2020 Revenues 441.4 256.1 133.5 Cost of revenues (138.1) (137.2) (110.8) Gross profit 303.2 118.9 22.7 Gross margin 68.7% 46.4% 17.0% SG&A (9.3) (9.0) (10.1) R&D expense (2.1) (1.2) (2.0) Other operating income 0.5
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Cash and cash equivalent 227.1 167.0 88.2 Restricted cash 42.6 60.8 27.6 Accounts receivable - 0.02 0.07 Note receivables 97.0 38.5 8.2 Inventories 33.8 34.1 26.8 Prepaid land use rights 37.0 30.5 28.8 Net PP&E 1,2
Slide 12: Cash flow summary
Cash flow summary 6 months ended 6 months ended ($ in millions) 6/30/ 2021 6/30/ 2020 Net cash provided by operating activities – continuing operations 442.3 47.0 Net cash provided by operating activities – discontinued operations - 0.05 Net cash provided by operating activities 442.3 47.0 Net cash
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q2 2021 Q1 2021 Q2 2020 Net income from continuing operations 242.9 87.2 2.4 Income tax expenses 43.1 14.5 2.0 Interest expense 7.2 7.8 6.7 Interest income (0.8) (0.3) (0.4) Depreciation & amortization 19.3 18.9 16.0 EBITDA (1) 311.7 128.1 26.8 EBITDA margin (
Slide 14: 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 15: Thank you
@ DAQO NEW ENERGY Hit Ht | Thank you