Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q4 2019 Earnings Presentation
16 slides from Daqo New Energy's earnings presentation, Mar 11, 2020
Slide 1: Q4 and Fiscal Year 2019 Financial Results Presentation
March 11, 2020 Q4 and Fiscal Year 2019 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 to close out the year in which we delivered strong operational and financial results. Having completed the new 35,000 MT Phase 4A expansion project at the end of the third quarter, we quickly ramped its production up during the fo
Slide 5: Management remarks II
Management remarks II “Towards the end of 2019 we saw the market share for multi-grade polysilicon shift meaningfully towards mono-grade polysilicon. While mono-grade polysilicon continues to be in high demand with stable pricing, demand for multi-grade polysilicon wanes with prices dropping signifi
Slide 6: Operational and financial highlights in Q4 2019
Operational and financial highlights in Q4 2019 • Polysilicon production volume was 16,204 MT in Q4 2019, compared to 9,437 MT in Q3 2019 • Polysilicon sales volume was 13,291 MT in Q4 2019, compared to 9,238 MT in Q3 2019 • Polysilicon average total production cost(1) was $6.38/kg in Q4 2019, compa
Slide 7: Operational and financial highlights in fiscal year 2019
Operational and financial highlights in fiscal year 2019 • Polysilicon production volume was 41,556 MT in 2019, compared to 23,351 MT in 2018 • Polysilicon external sales volume was 38,110 MT in 2019, compared to 22,521 MT in 2018 • Revenue from continuing operations was $350.0 million in 2019, comp
Slide 8: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q4 2019 key facts Outlook ▪ Quarterly production volume of 16,204 MT ▪ Expected production volume in Q1 2020: ▪ External sales volume of 13,291 MT 18,000 ~ 19,000 MT ▪ Average total production cost : $6.38/kg ▪ Expected external sales volume in Q1 2020: ▪ Avera
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview 16,204 Production Volume (MT) 9,437 8,764 7,301 7,150 5,657 5,659 4,940 5,339 4,927 4,993 4,734 3,547 3,405 3,570 3,636 2,689 2,456 1,734 1,504 1,748 1,791 1,801 1,517 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018
Slide 10: Historical sales volume and Q1 2020 guidance
Historical sales volume and Q1 2020 guidance Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 20,000 17,500 ~18,500 $19.09 18,000 $17.68 $16.66 $16.19 $16.22 16,000 14,000 $13.58 12,000 $10.79 $9.69 $9.55 $9.10 10,000 $8.99 $8.77 13,291 8,000 6,000 4,000 8
Slide 11: Income statement summary
Income statement summary ($ in millions, unless otherwise Q4 2019 Q3 2019 Q4 2018 FY 2019 FY 2018 stated) Revenues 118.9 83.9 75.6 350.0 301.6 Cost of revenues (83.8) (65.8) (58.7) (269.8) (203.5) Gross profit 35.1 18.1 16.9 80.1 98.1 Gross margin 29.5% 21.5% 22.4% 22.9% 32.5% SG&A (9.0) （8.2） (8.2)
Slide 12: Balance sheet summary
Balance sheet summary As of As of As of ($ in millions) 12/31/2019 9/30/2019 12/31/2018 Cash and cash equivalent 51.8 27.0 65.4 Restricted cash 62.6 41.2 28.6 Accounts receivable 0.01 0.1 1.2 Note receivables 5.6 4.3 8.1 Inventories 36.4 21.0 15.4 Prepaid land use rights 29.6 22.6 23.9 Net PP&E 995.
Slide 13: Cash flow summary
Cash flow summary 12 months ended 12 months ended ($ in millions) 12/31/ 2019 12/31/ 2018 Net cash provided by operating activities – continuing operations 180.0 77.6 Net cash provided by operating activities – discontinued operations 1.0 18.0 Net cash provided by operating activities 181.0 95.6 Net
Slide 14: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q4 2019 Q3 2019 Q4 2018 FY 2019 FY 2018 Net income from continuing operations 20.4 4.8 17.1 28.3 61.8 Income tax expenses 6.0 1.6 1.6 9.6 11.7 Interest expense 3.9 2.6 1.9 10.4 10.8 Interest income (0.2) (0.2) (0.4) (1.0) (1.2) Depreciation & amortization 15.3
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