Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2021 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Financial Results Presentation
October 28, 2021 Q3 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 record-high production volume and net profit in the company’s history. The strong end market environment, supported by favorable global policies to address climate change and rapidly increasing use of green energy, resulte
Slide 5: Management remarks II
Management remarks II “In the third and fourth quarter of this year, we have observed some volatility in the global energy market. Prices of almost all energy sources are going up quickly and significantly, including the prices of natural gas, oil, and coal. In many regions in China, many companies
Slide 6: Management remarks III
Management remarks III “This October, at the United Nations Biodiversity Conference in Kunming, Chinese President Xi Jinping announced that the first step had been taken towards the construction of a huge 400 GW wind and solar park. Construction on the first phase, comprising 100 gigawatts of wind a
Slide 7: Operational and financial highlights in Q3 2021
Operational and financial highlights in Q2 2021 • Polysilicon production volume was 21,684 MT in Q3 2021, compared to 21,102 MT in Q2 2021 • Polysilicon sales volume was 21,183 MT in Q3 2021, compared to 21,060 MT in Q2 2021 • Polysilicon average total production cost(1) was $6.84/kg in Q3 2021, com
Slide 8: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2021 key facts Outlook ▪ Quarterly production volume: 21,684 MT ▪ Expected annual production volume in 2021: ▪ External sales volume: 21,183 MT 83,000 ~ 85,000 MT ▪ Average total production cost : $6.84/kg ▪ Average cash cost: $5.96/kg Polysilicon historical
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview 21,684 Production Volume (MT) 19,777 21,008 20,185 21,102 18,406 18,097 16,204 9,437 8,764 7,301 7,150 5,339 5,659 4,993 4,940 5,657 4,927 4,734 3,547 3,570 3,636 2,689 3,405 2,456 1,748 1,801 1,734 1,517 1,504 1,791 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Historical sales volume and Q3 2021 guidance
Historical sales volume and Q3 2021 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 30,000 25,000 21,183 23,186 $27.55 21,471 21,060 20,000 19,101 18,881 $20.81 $19.09 $17.68 $16.66 15,000 $16.19 $16.22 13,291 13,643 $13.58 $11.90 10,000 $10.79 $
Slide 11: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q3 2021 Q2 2021 Q3 2020 Revenues 585.8 441.4 125.5 Cost of revenues (150.6) (138.1) (80.3) Gross profit 435.2 303.2 45.3 Gross margin 74.3% 68.7% 36.0% SG&A (11.4) (9.3) (9.2) R&D expense (1.9) (2.1) (1.7) Other operating income (0.2)
Slide 12: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 9/30/2021 6/30/2021 9/30/2020 Cash and cash equivalent 660.9 227.1 70.2 Restricted cash - 42.6 39.6 Accounts receivable 0.07 - 0.04 Note receivables 353.3 97.0 1.9 Inventories 46.2 33.8 53.6 Prepaid land use rights 36.9 37.0 29.8 Net PP&E 1,442
Slide 13: Cash flow summary
Cash flow summary 9 months ended 9 months ended ($ in millions) 9/30/ 2021 9/30/ 2020 Net cash provided by operating activities – continuing operations 653.1 71.1 Net cash provided by operating activities – discontinued operations - 0.05 Net cash provided by operating activities 653.1 71.1 Net cash
Slide 14: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q3 2021 Q2 2021 Q3 2020 Net income from continuing operations 355.8 242.9 21.9 Income tax expenses 62.1 43.1 6.2 Interest expense 6.4 7.2 5.4 Interest income (1.9) (0.8) (0.2) Depreciation & amortization 19.4 19.3 18.3 EBITDA (1) 411.8 311.7 51.6 EBITDA margin
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 Hit Ht | Thank you