Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q4 2018 Earnings Presentation
17 slides from Daqo New Energy's earnings presentation, Mar 13, 2019
Slide 1: Q4 and FY 2018 Financial Results Presentation
March 13, 2019 Q4 and FY 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
Management remarks "I would like to thank our entire team for their hard work and dedication for delivering another outstanding quarter in which we successfully completed the Phase 3B project and ramped production up to full capacity by the end of November 2018, three months ahead of schedule,” comm
Slide 5: Business update and Q4 2018 financial highlights
Business update and Q4 2018 financial highlights • Polysilicon production volume of 7,301 MT in Q4 2018, compared to 4,734 MT in Q3 2018 • Polysilicon external sales volume(1) of 7,030 MT in Q4 2018, compared to 6,199 MT in Q3 2018 • Polysilicon average total production cost(2) of $7.94/kg in Q4 201
Slide 6: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q4 2018 key facts Outlook Quarterly production volume of 7,301 MT Expected production volume in Q1 2019: External sales volume of 7,030 MT(1) 8,500 ~ 8,700 MT Average total production cost : $7.94/kg (2) Expected external sales volume in Q1 2019: Av
Slide 7: Daqo's quarterly polysilicon Average Selling Prices
Daqo’s quarterly polysilicon Average Selling Prices Quarterly Polysilicon ASPs($/kg) $22.04 $21.63 $21.50 $20.47 $18.67 $19.09 $17.98 $18.09 $17.24 $17.68 $16.71 $16.66 $16.19 $16.22 $15.95 $15.64 $14.98 $13.72 $14.96 $13.86 $13.58 $10.79 $9.69 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 7,301 Production Volume (MT) 5,657 5,659 5,339 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 2018 Cash co
Slide 9: Historical sales volume and Q1 2019 guidance
Historical sales volume and Q1 2019 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 8,400~ 8,600 $19.09 $17.68 $16.66 $16.19 $16.22 $14.96 7,030 $13.58 6,199 5,411 $9.69 4,730 $10.79 4,497 4,500 4,223 3,881 2,209 Q4 2016 Q1 2017 Q2 Q3 Q4 Q1 2018
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q4 2018 Q3 2018 Q4 2017 Revenues from continuing operations 75.6 67.4 118.9 Cost of revenues (58.7) (54.5) (50.8) Gross profit from continuing operations 16.9 12.8 68.1 Gross margin from continuing operations 22.4% 19.1% 57.3% SG&A (8
Slide 11: Balance sheet summary
Balance sheet summary As of As of Change As of ($ in millions) 12/31/2018 9/30/2018 (Q4 vs Q3 2018) 12/31/2017 Cash and cash equivalent 65.4 110.3 (44.9) 53.8 Restricted cash 28.6 2.9 25.7 9.9 Accounts receivable 1.2 0.001 1.199 0.7 Note receivables 8.1 22.5 (14.4) 20.8 Inventories 15.4 17.0 (1.6) 1
Slide 12: Cash flow summary
Cash flow summary 12 months ended 12 months ended ($ in millions) 12/31/ 2018 12/31/ 2017 Net cash provided by operating activities – 77.6 137.7 continuing operations Net cash provided by operating activities – 18.0 5.0 discontinued operations Net cash provided by operating 95.6 142.7 activities Net
Slide 13: Full Year 2018 financial and operating highlights
Full Year 2018 financial and operating highlights • Polysilicon production volume of 23,351 MT in 2018, compared to 20,200 MT in 2017. • Polysilicon external sales volume(1) of 22,521 MT in 2018, compared to 17,950 MT in 2017. • Revenue from continuing operations of $301.6 million in 2018, compared
Slide 14: Income statement summary (FY2018 vs. FY2017)
Income statement summary (FY2018 vs. FY2017) US$ in millions 2018 2017 Change Revenues 301.6 323.2 (21.6) Cost of Revenues (203.5) (179.2) (24.3) Gross profit 98.1 144.0 (45.9) Gross margin 32.5% 44.6% -12.1% SG&A + R&D expenses (29.8) (16.7) (13.1) Other operating income 13.2 3.7 9.4 Income from op
Slide 15: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q4 2018 Q3 2018 Q4 2017 FY 2018 FY 2017 Net income 17.1 4.2 57.7 62.1 97.9 Income tax expenses 1.6 (0.1) 5.6 11.7 17.3 Interest expense 1.9 2.1 3.7 10.8 16.3 Interest income (0.4) (0.3) (0.2) (1.2) (0.5) Depreciation 9.4 8.9 9.5 37.1 27.4 EBITDA (1) 29.5 14.8
Slide 16: 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 17: Thank you
@ DAQO NEW ENERGY Thank you