Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q1 2023 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, Apr 27, 2023
Slide 1: Q1 2023 Results Presentation
April 27, 2023 Q1 2023 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. Longgen Zhang, CEO of Daqo New Energy, commented, “Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “Efficient operation of our polysilicon facilities in the first quarter of 2023 resulted in a production volume of 33,848 MT. Our production cost decreased by 5.5% in RMB
Slide 5: Management remarks II: polysilicon demand and pricing
“Polysilicon demand was weak in January due to the seasonal slowdown in the solar PV industry. In February, lower module prices stimulated end-market demand causing a meaningful recovery in demand and price improvement across the solar value chain. In March and April, polysilicon ASPs declined gradu
Slide 6: Operational and financial highlights in Q1 2023
Operational and financial highlights in Q1 2023 • Polysilicon production volume was 33,848 MT in Q1 2023, compared to 33,702 MT in Q4 2022 • Polysilicon sales volume was 25,284 MT in Q1 2023, compared to 23,400 MT in Q4 2022 • Polysilicon average total production cost(1) was $7.55/kg in Q1 2023, com
Slide 7: Polysilicon facilities update
Polysilicon facilities update Q1 2023 key facts Outlook ▪ Quarterly production volume: 33,848 MT ▪ Expected production volume in Q2 2023: ▪ Sales volume: 25,284 MT 44,000 ~ 46,000 MT ▪ Average selling prices: $27.83/kg ▪ Expected production volume in the full year of 2023: ▪ Average total production
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) 35,326 33,401 33,702 33,848 31,383 23,616 21,684 21,008 20,185 21,102 19,777 18,097 18,406 16,204 9,437 8,764 7,301 7,150 5,657 5,659 4,734 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 Cash cost
Slide 9: Quarterly polysilicon sales volume and ASPs
Quarterly polysilicon sales volume and ASPs Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 50,000 $37.41 $36.44 $33.91 $35.00 45,000 $32.76 $33.08 40,000 38,839 37,545 $30.00 $27.55 $27.83 35,000 33,126 $25.00 30,000 $20.81 25,284 $20.00 25,000 $17.68 23
Slide 10: Income statement summary
Income statement summary Q1 2023 Q4 2022 Q1 2022 ($ in millions, unless otherwise stated) Revenues 709.8 864.3 1,280.3 Gross profit 506.7 668.9 813.6 Gross margin 71.4% 77.4% 63.5% SG&A （41.3） (44.0) (15.5) R&D expense （1.9） (2.7) (2.1) Income from operations 463.8 623.1 796.9 Net income attributabl
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 3/31/2023 12/31/2022 3/31/2022 Cash, cash equivalent and restricted cash 4,130.5 3,520.4 1,127.7 Note receivables 791.3 1,131.6 1,499.4 Short-term investments 5.8 13.9 10.4 Inventories 191.7 169.5 100.3 Prepaid land use rights 80.2 80.3 40.6 Pr
Slide 12: Cash flow summary
Cash flow summary 3 months ended 3 months ended ($ in millions) 3/31/2023 3/31/2022 Net income 394.7 667.1 Adjustments to reconcile net income to net cash provided by operating 65.2 31.8 activities Changes in operating assets and liabilities 347.1 (467.5) Net cash provided by operating activities 80
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation $ in thousands 3 months Ended Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022 Net income 394,695 486,292 667,051 Income tax expense 81,067 148,675 129,908 Interest income(expense), net (11,947) (12,030) 1,468 Depreciation & Amortization 26,399 25,585 28,359 EBITDA (non-GAAP) 490,21
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 Ht Ht | Thank you