Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2018 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, November 2018
Slide 1: Q3 2018 Financial Results Presentation
November 2018 Q3 2018 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 producer of high-purity polysilicon for the global solar PV industry
“A leading producer of high-purity polysilicon for the global solar PV industry” 2
Slide 4: Management remarks
Management remarks Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “We are pleased to report another solid quarter. In spite of weak market demands, we sold 6,199 MT of polysilicon during the third quarter, with polysilicon inventory returning to lean levels, which demonstrates our product’s s
Slide 5: Business update and Q3 2018 financial highlights
Business update and Q3 2018 financial highlights • Polysilicon production volume of 4,734 MT in Q3 2018, compared to 5,659 MT in Q2 2018 • Polysilicon external sales volume(1) of 6,199 MT in Q3 2018, compared to 3,881 MT in Q2 2018 • Polysilicon average total production cost(2) of $8.94/kg in Q3 201
Slide 6: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2018 key facts Outlook Quarterly production volume of 4,734 MT Expected production volume in Q4 2018: External sales volume of 6,199 MT(1) 7,000 ~ 7,100 MT Average total production cost : $8.94/kg (2) Expected external sales volume in Q4 2018: Av
Slide 7: Daqo's quarterly polysilicon Average Selling Prices
Daqo’s quarterly polysilicon Average Selling Prices Quarterly Polysilicon ASPs($/kg) $21.63 $22.04 $21.50 $20.47 $18.67 $19.09 $17.98 $18.09 $17.24 $17.68 $16.71 $16.66 $16.19 $16.22 $15.95 $15.64 $14.98 $14.96 $13.86$13.72 $13.58 $10.79 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 5,659 5,657 Production Volume (MT) 5,339 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 2,689 2,456 1,748 1,791 1,801 1,734 1,517 1,504 1,311 1,445 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 2018 Cash cost and De
Slide 9: Chongqing wafer facilities update
Chongqing wafer facilities update 8.7 million pieces sold to customers in Q3 2018 Wafer facilities discontinued in Sep. 2018 In September 2018, the Company made a strategic decision to discontinue its Chongqing business subsidiary, including its solar wafer manufacturing operations, to accommo
Slide 10: Historical external sales volume and Q4 2018 guidance
Historical external sales volume and Q4 2018 guidance Polysilicon external sales volume and ASPs Wafer external sales volume (million pieces) Polysilicon external sales volume (MT) ASP ($/kg) $19.09 $17.68 7,000~ $16.66 $16.19 7,100 $16.22 $14.96 27.0 $13.58 26.4 6199 22.4 22.3 21.3 5,411 $10.79 4,7
Slide 11: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q3 2018 Q2 2018 Q3 2017 Revenues from continuing operations 67.4 63.0 71.9 Cost of revenues (54.5) (37.7) (46.1) Gross profit from continuing operations 12.8 25.2 26.8 Gross margin from continuing operations 19.1% 40.6% 40.8% SG&A and
Slide 12: Non-GAAP reconciliation
Non-GAAP reconciliation ($ in millions) Q3 2018 Q2 2018 Q3 2017 Net income from continuing operations 4.2 10.9 14.6 Income tax expenses (0.1) 4.4 4.2 Interest expense 2.1 3.1 4.1 Interest income (0.3) (0.4) (0.1) Depreciation & Amortization 8.9 10.0 9.6 EBITDA (1) from continuing operations 14.8 28.
Slide 13: Balance sheet summary
Balance sheet summary As of As of Change As of ($ in millions) 9/30/2018 6/30/2018 (Q3 vs Q2 2018) 9/30/2017 Cash and cash equivalent 110.3 155.3 (45.0) 39.9 Restricted cash 2.9 17.2 (14.3) 18.8 Accounts receivable 0.001 0.008 (0.007) 1.3 Note receivables 22.5 17.0 5.5 11.9 Inventories 17.0 29.6 (12
Slide 14: Cash flow summary
Cash flow summary 9 months ended 9 months ended ($ in millions) 9/30/ 2018 9/30/ 2017 Net cash provided by operating 48.7 69.7 activities – continuing operations Net cash provided by operating activities – 14.9 28.7 discontinued operations Net cash (used in) investing activities – （90.1） （19.9） cont
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