Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q1 2019 Earnings Presentation
14 slides from Daqo New Energy's earnings presentation, May 21, 2019
Slide 1: Q1 2019 Financial Results Presentation
May 21, 2019 Q1 2019 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
Management remarks "We are very pleased to report solid operational and financial performance for the first quarter of 2019, during which we achieved record-high production and sales volumes, as well as our most competitive cost structure,” commented Mr. Longgen Zhang, CEO of Daqo New Energy. “Durin
Slide 5: Operational and financial highlights in Q1 2019
Operational and financial highlights in Q1 2019 Polysilicon production volume of 8,764 MT in Q1 2019, compared to 7,301 MT in Q4 2018 Polysilicon external sales volume of 8,450 MT in Q1 2019, compared to 7,030 MT in Q4 2018 Polysilicon average total production cost(1) of $7.42 /kg in Q1 2019,
Slide 6: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q1 2019 key facts Outlook Quarterly production volume of 8,764 MT Expected production volume in Q2 2019: External sales volume of 8,450 MT 7,200 ~ 7,400 MT Average total production cost : $7.42/kg Expected external sales volume in Q2 2019: Average c
Slide 7: Polysilicon manufacturing overview
Polysilicon manufacturing overview 8,764 Production Volume (MT) 7,301 5,657 5,659 5,339 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 201
Slide 8: Historical sales volume and Q2 2019 guidance
Historical sales volume and Q2 2019 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) $19.09 8,450 7,100~ $17.68 7,300 $16.66 $16.19 $16.22 $14.96 7,030 $13.58 6,199 5,411 $9.69 $9.55 4,730 $10.79 4,497 4,500 4,223 3,881 2,209 Q4 2016 Q1 2017 Q2 Q3
Slide 9: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q1 2019 Q4 2018 Q1 2018 Revenues 81.2 75.6 95.6 Cost of revenues (62.9) (58.7) (52.6) Gross profit from continuing operations 18.3 16.9 43.1 Gross margin from continuing operations 22.6% 22.4% 45.0% SG&A (7.9) (8.2) (3.8) R&D expense
Slide 10: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 3/31/2019 12/31/2018 3/31/2018 Cash and cash equivalent 65.1 65.4 60.8 Restricted cash 48.6 28.6 18.2 Accounts receivable 2.2 1.2 0.01 Note receivables 0.7 8.1 45.2 Inventories 18.9 15.4 16.0 Prepaid land use rights 22.7 22.2 24.8 Net PP&E 686.
Slide 11: Cash flow summary
Cash flow summary 3 months ended 3 months ended ($ in millions) 3/31/ 2019 3/31/ 2018 Net cash provided by operating activities – continuing operations 43.8 5.1 Net cash provided by operating activities – discontinued operations 4.7 16.8 Net cash provided by operating activities 48.5 22.0 Net cash u
Slide 12: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q1 2019 Q4 2018 Q1 2018 Net income from continuing operations 5.9 17.1 29.9 Income tax expenses 1.4 1.6 5.9 Interest expense 2.0 1.9 3.7 Interest income (0.3) (0.4) (0.1) Depreciation & amortization 11.0 9.4 9.3 EBITDA (1) 20.0 29.5 48.6 EBITDA margin (1) 24.6
Slide 13: 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 14: Thank you
@ DAQO NEW ENERGY Thank you