Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q2 2023 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Results Presentation
August 3, 2023 Q2 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 of Daqo New Energy, commented, “Efficient operation of our polysilicon facilities in the second quarter of 2023 resulted in a production volume of 45,306 MT, representing an increase of 11,458 MT as compared to the previous quarter, as our Phase 5A 100,000 MT p
Slide 5: The polysilicon industry experienced increased challenges and substantial price volatility
“The polysilicon industry experienced increased challenges and substantial price volatility during the second quarter. As several new polysilicon facilities and new entrants finally started production with some reaching full production in the first half of this year, the shortage of polysilicon of t
Slide 6: Management Remarks: foreign exchange loss and share buyback
“For the second quarter we recorded approximately $19.7 million in foreign exchange loss, or approximately $0.26 per ADS. Near the end of April, the Company received approximately RMB4.96 billion in cash dividends from its subsidiary Xinjiang Daqo, which was approximately $716.7 million based on the
Slide 7: Operational and Financial Highlights in Q2 2023
Operational and Financial Highlights in Q2 2023 • Polysilicon production volume was 45,306 MT in Q2 2023, compared to 33,848 MT in Q1 2023 • Polysilicon sales volume was 51,550 MT in Q2 2023, compared to 25,284 MT in Q1 2023 • Polysilicon average total production cost(1) was $6.92/kg in Q2 2023, com
Slide 8: Polysilicon Facilities Update
Polysilicon Facilities Update Q2 2023 Key Figures Outlook ▪ Quarterly production volume: 45,306 MT ▪ Expected production volume in Q3 2023: ▪ Sales volume: 51,550 MT 55,000 ~ 57,000 MT ▪ Average selling prices: $12.33/kg ▪ Expected production volume in the full year of 2023: ▪ Average total producti
Slide 9: Polysilicon Manufacturing Overview
Polysilicon Manufacturing Overview Production Volume (MT) 45,306 35,326 33,401 33,702 33,848 31,383 23,616 21,008 20,185 21,102 21,684 19,777 18,097 18,406 16,204 8,764 9,437 7,301 7,150 5,657 5,659 4,734 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 2022 2023
Slide 10: Quarterly Polysilicon Sales Volume and ASPs
Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 51,550 38,839 37,545 33,126 25,284 23,186 23,400 21,471 21,060 21,183 19,101 18,881 13,291 13,643 11,642 8,450 7,130 9,238 5,411 3,881 6,199 7,030 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019
Slide 11: Income Statement Summary
Income Statement Summary Q2 2023 Q1 2023 Q2 2022 ($ in millions, unless otherwise stated) Revenues 636.7 709.8 1,244.1 Gross profit 258.9 506.7 946.9 Gross margin 40.7% 71.4% 76.1% SG&A （43.3） （41.3） (14.4) R&D expense （2.2） （1.9） (2.7) Income from operations 213.9 463.8 927.6 Net income attributabl
Slide 12: Balance Sheet Summary
Balance Sheet Summary As of As of As of ($ in millions) 6/30/2023 3/31/2023 6/30/2022 Cash, cash equivalent and restricted cash 3,169.7 4,130.5 3,284.3 Note receivables 798.5 791.3 1,269.3 Short-term investments 2.8 5.8 11.4 Inventories 159.5 191.7 52.3 Prepaid land use rights 94.6 80.2 38.2 Propert
Slide 13: Cash Flow Summary
Cash Flow Summary 6 months ended 6 months ended ($ in millions) 6/30/2023 6/30/2022 Net income 556.9 1,447.5 Adjustments to reconcile net income to net cash provided by operating 139.1 67.1 activities Changes in operating assets and liabilities 90.4 (385.8) Net cash provided by operating activities
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands 3 months Ended Jun. 30, 2023 Mar. 31, 2023 Jun. 30, 2022 Net income 162,182 394,695 780,479 Income tax expense 44,730 81,067 143,460 Interest income(expense), net (12,751) (11,947) 3,677 Depreciation & Amortization 35,835 26,399 27,765 EBITDA (non-GAAP) 229,996
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!