Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2019 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Aug 14, 2019
Slide 1: Q2 2019 Financial Results Presentation
Aug 14, 2019 Q2 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 I
Management remarks I "We are pleased to report a solid quarter, in which we made good progress in capacity increase and quality improvement. During the second quarter, we completed our capacity debottlenecking project on time, which allowed us to increase our annual capacity to 35,000 MT. At the sam
Slide 5: Management remarks II
Management remarks II “In early July this year, China’s National Energy Administration released a list of 22.8 GW approved solar projects that secured government subsidies for 2019. Combining these approved subsidized projects, grid- parity projects, residential distributed-generation projects, top-
Slide 6: Operational and financial highlights in Q2 2019
Operational and financial highlights in Q2 2019 • Polysilicon production volume of 7,151 MT in Q2 2019, compared to 8,764 MT in Q1 2019 • Polysilicon sales volume of 7,130 MT in Q2 2019, compared to 8,450 MT in Q1 2019 • Polysilicon average total production cost(1) of $8.12 /kg in Q2 2019, compared
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q2 2019 key facts Outlook ▪ Quarterly production volume of 7,151 MT ▪ Expected production volume in Q3 2019: ▪ External sales volume of 7,130 MT 9,200 ~ 9,500 MT ▪ Average total production cost : $8.12/kg ▪ Expected external sales volume in Q3 2019: ▪ Average c
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 8,764 Production Volume (MT) 7,301 7,150 5,657 5,339 5,659 4,993 4,734 4,927 4,940 3,636 3,547 3,570 3,405 2,689 2,456 1,7481,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016
Slide 9: Historical sales volume and Q3 2019 guidance
Historical sales volume and Q3 2019 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 9,000 ~9,300 $19.09 8,450 $17.68 $16.66 $16.19 $16.22 $14.96 7,130 7,030 $13.58 6,199 5,411 $9.69 $9.55 $9.10 4,730 $10.79 4,497 4,500 4,223 3,881 2,209 Q4 2016 Q
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q2 2019 Q1 2019 Q2 2018 Revenues 66.0 81.2 63.0 Cost of revenues (57.4) (62.9) (37.7) Gross profit 8.6 18.3 25.2 Gross margin 13.0% 22.6% 40.1% SG&A (7.8) (7.9) (7.5) R&D expense (1.5) (1.3) (0.2) Other operating income 0.4 0.07 0.5 (
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 6/30/2019 3/31/2019 6/30/2018 Cash and cash equivalent 31.3 65.1 155.3 Restricted cash 48.4 48.6 17.2 Accounts receivable 0.1 2.2 0.01 Note receivables 9.4 0.7 17.0 Inventories 19.9 18.9 29.6 Prepaid land use rights 22.0 22.7 23.4 Net PP&E 763.
Slide 12: Cash flow summary
Cash flow summary 6 months ended 6 months ended ($ in millions) 6/30/ 2019 6/30/ 2018 Net cash provided by operating activities – continuing operations 65.8 58.9 Net cash provided by operating activities – discontinued operations 2.0 8.2 Net cash provided by operating activities 67.8 67.1 Net cash u
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q2 2019 Q1 2019 Q2 2018 Net (loss) income from continuing operations (2.7) 5.9 10.9 Income tax expenses 0.7 1.4 4.4 Interest expense 1.9 2.0 3.1 Interest income (0.3) (0.3) (0.4) Depreciation & amortization 10.6 11.0 9.4 EBITDA (1) 10.2 20.0 27.4 EBITDA margin
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