Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2023 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Oct 30, 2023
Slide 1: Q3 2023 Results Presentation
October 30, 2023 Q3 2023 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
Management Remarks Mr. Xiang Xu, Chairman and CEO of the Company, commented, “During the third quarter, continued optimization of operations at our two polysilicon facilities resulted in a total production volume of 57,664 MT, an increase of 12,358 MT or 27% compared to the previous quarter. Our Inn
Slide 5: Management Remarks – Continued
Management Remarks – Continued “At the end of the second quarter, after polysilicon prices reached bottom, customers began reordering and taking delivery of products, significantly reducing industry inventory levels. Polysilicon pricing recovered gradually over the third quarter. In July, as module
Slide 6: Management Remarks – Continued (2)
Management Remarks – Continued (2) “With the urgent need to address climate change, we are still at the early stage of the energy transition from fossil fuel to renewable energy [for human’s energy needs on Earth]. As one of the most competitive forms of power generation, the continuous cost reducti
Slide 7: Operational and Financial Highlights in Q3 2023
Operational and Financial Highlights in Q3 2023 • Polysilicon production volume was 57,664 MT in Q3 2023, compared to 45,306 MT in Q2 2023 • Polysilicon sales volume was 63,263 MT in Q3 2023, compared to 51,550 MT in Q2 2023 • Polysilicon average total production cost(1) was $6.52/kg in Q3 2023, com
Slide 8: Polysilicon Facilities Update
Polysilicon Facilities Update Q3 2023 Key Figures Outlook ▪ Quarterly production volume: 57,664 MT ▪ Expected production volume in Q4 2023: ▪ Sales volume: 63,263 MT 59,000 ~ 62,000 MT ▪ Average selling prices: $7.68/kg ▪ Expected production volume in the full year of 2023: ▪ Average total productio
Slide 9: Polysilicon Manufacturing Overview
Polysilicon Manufacturing Overview Production Volume (MT) 57,664 45,306 35,326 33,401 33,702 33,848 31,383 23,616 19,777 21,008 20,185 21,102 21,684 18,097 18,406 16,204 9,437 7,301 8,764 7,150 5,657 5,659 4,734 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021
Slide 10: Quarterly Polysilicon Sales Volume and ASPs
Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 63,263 51,550 38,83937,545 33,126 25,284 23,18621,471 23,400 21,06021,183 19,10118,881 13,291 13,643 11,642 9,238 5,411 3,881 6,199 7,030 8,450 7,130 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 201
Slide 11: Income Statement Summary
Income Statement Summary Q3 2023 Q2 2023 Q3 2022 ($ in millions, unless otherwise stated) Revenues 484.8 636.7 1,219.7 Gross profit 67.8 258.9 978.6 Gross margin 14.0% 40.7% 80.2% SG&A （89.7） （43.3） (280.2) R&D expense （2.8） （2.2） (2.5) Income from operations 22.5 213.9 693.0 Net (loss)/income attri
Slide 12: Balance Sheet Summary
Balance Sheet Summary As of As of As of ($ in millions) 9/30/2023 6/30/2023 9/30/2022 Cash, cash equivalent and restricted cash 3,280.8 3,169.7 3,051.1 Note receivables 275.8 798.5 1,571.7 Short-term investments 2.7 2.8 31.7 Inventories 129.1 159.5 73.3 Prepaid land use rights 147.8 94.6 77.6 Proper
Slide 13: Cash Flow Summary
Cash Flow Summary 9 months ended 9 months ended ($ in millions) 9/30/2023 9/30/2022 Net income 574.7 1,993.3 Adjustments to reconcile net income to net cash provided by operating 235.3 370.2 activities Changes in operating assets and liabilities 687.4 (666.5) Net cash provided by operating activitie
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands 3 months Ended Sep. 30, 2023 Jun. 30, 2023 Sep. 30, 2022 Net income 17,843 162,182 545,820 Income tax expense 21,438 44,730 155,204 Interest income (expense), net (13,832) (12,751) (7,589) Depreciation & Amortization 44,765 35,835 26,608 EBITDA (non-GAAP) 70,21
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!