Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q4 2020 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Mar 9, 2021
Slide 1: Q4 and Fiscal Year 2020 Financial Results Presentation
March 9, 2021 Q4 and Fiscal Year 2020 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 pleased to report a strong quarter in terms of operational and financial results to bring a successful close of the year 2020. I would like to thank our entire team for their hard work, commitment and dedication in achieving these excellent results. During the quart
Slide 5: Management remarks II
Management remarks II “I have been in the solar industry for over a decade, and the prospects for the solar industry have never been brighter. Driven by the dual trends of solar grid parity and the urgent need to address climate change, the industry is on the cusp of undergoing tremendous growth ove
Slide 6: Operational and financial highlights in Q4 2020
Operational and financial highlights in Q4 2020 • Polysilicon production volume was 21,008 MT in Q4 2020, compared to 18,406 MT in Q3 2020 • Polysilicon sales volume was 23,186 MT in Q4 2020, compared to 13,643 MT in Q3 2020 • Polysilicon average total production cost (1) was $5.92/kg in Q4 2020, co
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q4 2020 key facts Outlook ▪ Quarterly production volume: 21,008 MT ▪ Expected production volume in Q1 2021: ▪ External sales volume: 23,186 MT 19,500 ~ 20,500 MT ▪ Average total production cost : $5.92/kg ▪ Expected external sales volume in Q1 2021: ▪ Average c
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 21,008 19,777 18,406 Production Volume (MT) 18,097 16,204 9,437 8,764 7,301 7,150 5,657 5,339 5,659 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 1,791 1,801 1,734 2,689 2,456 1,504 1,748 1,517 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 9: Historical sales volume and Q1 2021 guidance
Historical sales volume and Q1 2021 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 25,000 23,186 $19.09 20,000 ~ 21,000 $17.68 $16.66 $16.19 $16.22 20,000 19,101 18,881 $13.58 15,000 $10.79 13,643 $10.79 13,291 $9.69 $9.55 $9.10 $9.13 $8.99 $8.7
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise Q4 2020 Q3 2020 Q4 2019 FY 2020 FY 2019 stated) Revenues 247.7 125.5 118.9 675.6 350.0 Cost of revenues （138.2） （80.3) (83.8) (441.6) (269.9) Gross profit 109.5 45.3 35.1 234.0 80.1 Gross margin 44.2% 36.0% 29.5% 34.6% 22.9% SG&A (11.2) (9.2)
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 12/31/2020 9/30/2020 12/31/2019 Cash and cash equivalent 76.6 70.2 51.8 Restricted cash 41.8 39.6 62.6 Accounts receivable - 0.04 0.01 Note receivables 0.2 1.9 5.6 Inventories 42.2 53.6 36.4 Prepaid land use rights 30.8 29.8 29.6 Net PP&E 1,025
Slide 12: Cash flow summary
Cash flow summary 12 months ended 12 months ended ($ in millions) 12/31/ 2020 12/31/ 2019 Net cash provided by operating activities – continuing operations 209.8 180.0 Net cash (used in) / provided by operating activities – discontinued (0.05) 1.0 operations Net cash provided by operating activities
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q4 2020 Q3 2020 Q4 2019 FY 2020 FY 2019 Net income from continuing operations 76.3 21.9 20.4 133.9 28.3 Income tax expenses 13.6 6.2 6.0 28.2 9.6 Interest expense 8.3 5.4 3.9 26.6 10.4 Interest income (0.2) (0.2) (0.2) (0.9) (1.0) Depreciation & amortization 1
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