Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2024 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Aug 26, 2024
Slide 1: Q2 2024 Results Presentation
August 26, 2024 Q2 2024 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. Xiang Xu, CEO of Daqo New Energy, commented, “The solar industry experienced significant challenges during the second quarter, as market prices fell across the solar value chain to below production costs for nearly the entire industry. As end-of-quarter polysilicon ASP fell
Slide 5: Management Remarks II: production utilization and pricing
“In light of the current market conditions and pricing, we have adjusted our target production utilization rate for the third quarter and our production plan for the full year. We expect our Q3 2024 total polysilicon production volume to be approximately 43,000 MT to 46,000 MT, as we started mainten
Slide 6: Challenging year for China's solar PV industry
“This year will be challenging for China’s solar PV industry, as solar manufacturers along the value chain experience weak margins driven by oversupply, excessive inventory, and lower prices. At this point, we may have reached a cyclical bottom but do not yet see clear signs of potential improvement
Slide 7: Operational and Financial Highlights in Q2 2024
Operational and Financial Highlights in Q2 2024 • Polysilicon production volume was 64,961 MT in Q2 2024, compared to 62,278 MT in Q1 2024 • Polysilicon sales volume was 43,082 MT in Q2 2024 compared to 53,987 MT in Q1 2024 • Polysilicon average total production cost(1) was $6.19/kg in Q2 2024 compa
Slide 8: Polysilicon Facilities Update
Polysilicon Facilities Update Q2 2024 Key Figures Outlook ▪ Quarterly production volume: 64,961 MT ▪ Expected production volume in Q3 2024: ▪ Sales volume: 43,082 MT 43,000 ~ 46,000 MT ▪ Average selling prices: $5.12/kg ▪ Expected production volume in the full year of 2024: ▪ Average total productio
Slide 9: Polysilicon Manufacturing Overview
Polysilicon Manufacturing Overview Production Volume (MT) 64,961 61,014 62,278 57,664 45,306 35,326 33,401 33,702 33,848 31,383 23,616 19,777 21,008 20,185 21,102 21,684 18,097 18,406 16,204 8,764 9,437 7,150 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023
Slide 10: Quarterly Polysilicon Sales Volume and ASPs
Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 63,263 59,906 53,987 51,550 43,082 38,839 37,545 33,126 25,284 23,186 21,471 23,400 21,060 21,183 19,101 18,881 13,291 13,643 11,642 8,450 7,130 9,238 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019
Slide 11: Income Statement Summary
Income Statement Summary Q2 2024 Q1 2024 Q2 2023 ($ in millions, unless otherwise stated) Revenues 219.9 415.3 636.7 Gross (loss)/profit (159.2) 72.1 258.9 Gross margin (72.4%) 17.4% 40.7% SG&A (37.5) (38.4) （43.3） R&D expense (1.8) (1.5) （2.2） (Loss)/income from operations (195.6) 30.5 213.9 Net (l
Slide 12: Balance Sheet Summary
Balance Sheet Summary As of As of As of ($ in millions) 6/30/2024 3/31/2024 6/30/2023 Cash, cash equivalent and restricted cash 997.5 2,689.3 3,169.7 Note receivables 80.7 194.1 798.5 Short-term investments 219.5 - 2.8 Inventories 192.0 191.2 159.5 Prepaid land use rights 155.2 157.0 94.6 Property,
Slide 13: Cash Flow Summary
Cash Flow Summary 6 months ended 6 months ended ($ in millions) 6/30/2024 6/30/2023 Net (loss) / income (129.7) 556.9 Adjustments to reconcile net (loss) / income to net cash provided by 239.1 139.1 operating activities Changes in operating assets and liabilities (388.1) 90.4 Net cash (used in) / pr
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands 3 months Ended Jun. 30, 2024 Mar. 31, 2024 Jun. 30, 2023 Net (loss)/income (157,863) 28,154 162,182 Income tax expense (23,283) 14,356 44,730 Interest income, net (8,730) (12,270) (12,751) Depreciation & Amortization 44,958 46,669 35,835 EBITDA (non-GAAP) (144,
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 Thank you!