Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q1 2020 Earnings Presentation
15 slides from Daqo New Energy's earnings presentation, May 20, 2020
Slide 1: Q1 2020 Financial Results Presentation
May 20, 2020 Q1 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 pleased to report an outstanding quarter with excellent financial and operational results. We operated at full capacity during the quarter and were able to produce and sell record-high volume of 19,777 MT and 19,101 MT of polysilicon, respectively. Thanks to growing econ
Slide 5: Management remarks II
Management remarks II “Towards the end of the first quarter, the spread of COVID-19 globally and related lockdowns, particularly in the U.S., Europe and certain other emerging markets, resulted in significant disruptions to demand for solar PV products. This has created short-term market uncertainty
Slide 6: Operational and financial highlights in Q1 2020
Operational and financial highlights in Q1 2020 • Polysilicon production volume was 19,777 MT in Q1 2020, compared to 16,204 MT in Q4 2019 • Polysilicon sales volume was 19,101 MT in Q1 2020, compared to 13,291 MT in Q4 2019 • Polysilicon average total production cost(1) was $5.86/kg in Q1 2020, com
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q1 2020 key facts Outlook ▪ Quarterly production volume of 19,777 MT ▪ Expected production volume in Q2 2020: ▪ External sales volume of 19,101 MT 15,500 ~ 16,500 MT ▪ Average total production cost : $5.86/kg ▪ Expected external sales volume in Q2 2020: ▪ Avera
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview 19,777 Production Volume (MT) 16,204 9,437 8,764 7,301 7,150 5,657 5,339 5,659 4,927 4,993 4,940 4,734 3,547 3,405 3,570 3,636 1,791 1,801 1,734 2,689 2,456 1,504 1,748 1,517 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016
Slide 9: Historical sales volume and Q2 2020 guidance
Historical sales volume and Q2 2020 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 0,000 $19.09 8,000 14,500~ $17.68 15,500 $16.66 $16.19 $16.22 6,000 4,000 $13.58 2,000 $10.79 $9.69 $9.55 $9.10 0,000 $8.99 $8.77 $8.79 8,000 19,101 13,291 6,000
Slide 10: Income statement summary
Income statement summary ($ in millions, unless otherwise stated) Q1 2020 Q4 2019 Q1 2019 Revenues 168.8 118.9 81.2 Cost of revenues (112.3) (83.8) (62.9) Gross profit 56.6 35.1 18.3 Gross margin 33.5% 29.5% 22.6% SG&A (8.9) (8.5) (7.9) R&D expense (1.7) (1.7) (1.3) Other operating income (0.2) 5.2
Slide 11: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 3/31/2020 12/31/2019 3/31/2019 Cash and cash equivalent 63.2 51.8 65.1 Restricted cash 57.6 62.6 48.6 Accounts receivable 0.2 0.01 2.2 Note receivables 4.4 5.6 0.7 Inventories 33.2 36.4 18.9 Prepaid land use rights 28.9 29.6 24.4 Net PP&E 968.4
Slide 12: Cash flow summary
Cash flow summary 3 months ended 3 months ended ($ in millions) 3/31/ 2020 3/31/ 2019 Net cash provided by operating activities – continuing operations 31.1 43.8 Net cash provided by operating activities – discontinued operations 0.02 4.7 Net cash provided by operating activities 31.1 48.5 Net cash
Slide 13: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q1 2020 Q4 2019 Q1 2019 Net income from continuing operations 33.3 20.4 5.8 Income tax expenses 6.3 6.0 1.4 Interest expense 6.3 3.9 2.0 Interest income (0.2) (0.2) (0.3) Depreciation & amortization 17.3 15.3 11.0 EBITDA (1) 63.1 45.4 19.9 EBITDA margin (1) 37
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