Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2020 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Aug 18, 2020
Slide 1: Q2 2020 Financial Results Presentation
Aug. 18, 2020 Q2 2020 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 Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “The second quarter of 2020 was a particularly challenging time for the polysilicon industry. Beginning in late March, the global spread of COVID-19 and related lockdowns, particularly in the U.S., Europe and certain emerging
Slide 5: Management remarks II
Management remarks II “In the second quarter, we produced and sold 18,097 MT and 18,881 MT of polysilicon, respectively, exceeding our guidance. We conducted annual maintenance for our manufacturing facility in the second quarter. However, some technology upgrade projects, as well as equipment modif
Slide 6: Operational and financial highlights in Q2 2020
Operational and financial highlights in Q2 2020 • Polysilicon production volume was 18,097 MT in Q2 2020, compared to 19,777 MT in Q1 2020 • Polysilicon sales volume was 18,881 MT in Q2 2020, compared to 19,101 MT in Q1 2020 • Polysilicon average total production cost (1) was $5.79/kg in Q2 2020, co
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q2 2020 key facts Outlook ▪ Quarterly production volume of 18,097 MT ▪ Expected production volume in Q3 2020: ▪ External sales volume of 18,881 MT 17,500 ~ 18,000 MT ▪ Average total production cost : $5.79/kg ▪ Expected external sales volume in Q3 2020: ▪ Avera
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 19,777 18,097 Production Volume (MT) 16,204 9,437 8,764 7,301 7,150 5,657 5,339 5,659 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 1,734 2,689 2,456 1,748 1,791 1,801 1,504 1,517 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014
Slide 9: Historical sales volume and Q3 2020 guidance
Historical sales volume and Q3 2020 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 0,000 17,000 $19.09 ~ 17,500 8,000 $17.68 $16.66 $16.19 $16.22 6,000 4,000 $13.58 2,000 $10.79 $9.69 $9.55 $9.10 0,000 $8.99 $8.77 $8.79 $7.04 8,000 6,000 4,000 4
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q2 2020 Q1 2020 Q2 2019 Revenues 133.5 168.8 66.0 Cost of revenues (110.8) (112.3) (57.4) Gross profit 22.7 56.6 8.6 Gross margin 17.0% 33.5% 13.0% SG&A (10.1) (8.9) (7.8) R&D expense (2.0) (1.7) (1.5) Other operating income / (expens
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 6/30/2020 3/31/2020 6/30/2019 Cash and cash equivalent 88.2 63.2 31.3 Restricted cash 27.6 57.6 48.4 Accounts receivable 0.1 0.2 0.1 Note receivables 8.2 4.4 9.4 Inventories 26.8 33.2 19.9 Prepaid land use rights 28.8 28.9 22.0 Net PP&E 956.7 9
Slide 12: Cash flow summary
Cash flow summary 6 months ended 6 months ended ($ in millions) 6/30/ 2020 6/30/ 2019 Net cash provided by operating activities – continuing operations 47.0 65.8 Net cash (used in) / provided by operating activities – discontinued (0.1) 2.0 operations Net cash provided by operating activities 47.0 6
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q2 2020 Q1 2020 Q2 2019 Net income from continuing operations 2.4 33.3 (2.7) Income tax expenses 2.0 6.3 0.7 Interest expense 6.7 6.3 1.9 Interest income (0.4) (0.2) (0.3) Depreciation & amortization 16.0 17.3 10.6 EBITDA (1) 26.8 63.1 10.2 EBITDA margin (1) 2
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 Thank you