Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q4 2023 Earnings Presentation
17 slides from Daqo New Energy's earnings presentation, Feb 28, 2024
Slide 1: Q4 and Fiscal Year 2023 Results Presentation
February 28, 2024 Q4 and Fiscal Year 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
Management Remarks Mr. Xiang Xu, Chairman and CEO of the Company, commented, “2023 was a year of unforeseen developments and challenges in the solar industry with record installation volumes worldwide but also record-low prices by the end of the year. Thanks to the dedication and invaluable contribu
Slide 5: Management Remarks – Continued
Management Remarks – Continued “We expect Q1 2024 total polysilicon production volume to be approximately 60,000 MT to 62,000 MT, similar to that for Q4 2023 as the Company maintains full production. We plan to begin initial production at our new Inner Mongolia 5B facility in Q2 2024, and as such we
Slide 6: Management Remarks – Continued (2)
Management Remarks – Continued (2) “Regarding the Company’s $700 million share buyback program announced in November 2022, by the end of 2023, the Company had repurchased 14.55 million ADSs (equivalent to 72.75 million ordinary shares) at an average price of $33.71 per ADS for a total of approximate
Slide 7: Operational and Financial Highlights in Q4 2023
Operational and Financial Highlights in Q4 2023 • Polysilicon production volume was 61,014 MT in Q4 2023, compared to 57,664 MT in Q3 2023 • Polysilicon sales volume sales volume was 59,906 MT in Q4 2023, compared to 63,263 MT in Q3 2023 • Polysilicon average total production cost(1) was $6.50/kg in
Slide 8: Operational and Financial Highlights in FY2023
Operational and Financial Highlights in FY2023 • Polysilicon production volume was 197,831 MT in 2023, compared to 133,812 MT in 2022 • Polysilicon sales volume was 200,002 MT in 2023, compared to 132,909 MT in 2022 • Revenue was $2,308.5 million in 2023, compared to $4,608.4 million in 2022 • Gross
Slide 9: Polysilicon Facilities Update
Polysilicon Facilities Update Q4 2023 Key Figures Outlook ▪ Quarterly production volume: 61,014 MT ▪ Expected production volume in Q1 2024: ▪ Sales volume: 59,906 MT 60,000 ~ 62,000 MT ▪ Average selling prices: $7.97/kg ▪ Expected production volume in the full year of 2024: ▪ Average total productio
Slide 10: Polysilicon Manufacturing Overview
Polysilicon Manufacturing Overview Production Volume (MT) 61,014 57,664 45,306 35,326 33,40133,70233,848 31,383 23,616 19,777 21,00820,18521,10221,684 18,09718,406 16,204 9,437 7,301 8,764 7,150 5,657 5,659 4,734 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020
Slide 11: Quarterly Polysilicon Sales Volume and ASPs
Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 63,263 59,906 51,550 38,83937,545 33,126 25,284 23,18621,471 23,400 21,06021,183 19,10118,881 13,291 13,643 11,642 8,450 7,130 9,238 5,411 3,881 6,199 7,030 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Income Statement Summary
Income Statement Summary Q4 2023 Q3 2023 Q4 2022 ($ in millions, unless otherwise stated) Revenues 477.1 484.8 864.3 Gross profit 87.2 67.8 668.9 Gross margin 18.3% 14.0% 77.4% SG&A (39.0) （89.7） (44.0) R&D expense (3.3) （2.8） (2.7) Income from operations 83.3 22.5 623.1 Net income/(loss) attributab
Slide 13: Balance Sheet Summary
Balance Sheet Summary As of As of As of ($ in millions) 12/31/2023 9/30/2023 12/31/2022 Cash, cash equivalent and restricted cash 3,048.0 3,280.8 3,520.4 Note receivables 116.4 275.8 1,131.6 Short-term investments - 2.7 13.9 Inventories 173.3 129.1 169.5 Prepaid land use rights 150.4 147.8 80.3 Prop
Slide 14: Cash Flow Summary
Cash Flow Summary Year ended Year ended ($ in millions) 12/31/2023 12/31/2022 Net income 644.4 2,479.6 Adjustments to reconcile net income to net cash provided by operating activities 301.6 432.0 Changes in operating assets and liabilities 664.8 (449.0) Net cash provided by operating activities 1,61
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands Three months Ended Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2022 Net income 69,783 17,843 486,293 Income tax expense 26,737 21,438 148,675 Interest income (expense), net (13,772) (13,832) (12,030) Depreciation & Amortization 45,455 44,765 25,585 EBITDA (non-GAAP) 1
Slide 16: 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 17: Thank you!
@ DAQO NEW ENERGY Thank you!