Daqo New Energy Corp · NYSE:DQ

Daqo New Energy — Q4 2022 Earnings Presentation

15 slides from Daqo New Energy's earnings presentation, Feb 28, 2023

  1. Slide 1: Q4 and Fiscal Year 2022 Results Presentation

    February 28, 2023 Q4 and Fiscal Year 2022 Results Presentation

  2. 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

  3. 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

  4. Slide 4: Management remarks I

    Management remarks I Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “We are very pleased to report record results for the year 2022. I would like to thank our entire team for achieving such strong financial and operational performance. Our annual polysilicon production volume was 133,812 MT i

  5. Slide 5: Management remarks II

    Management remarks II “Global solar PV installations were approximately 268GW in 2022, a 53% annual increase from approximately 175GW in 2021, growing faster than most had forecasted at the beginning of the year. The increase in polysilicon supply, in conjunction with supportive global climate chang

  6. Slide 6: Operational and financial highlights in Q4 2022

    Operational and financial highlights in Q4 2022  Polysilicon production volume was 33,702 MT in Q4 2022, compared to 33,401 MT in Q3 2022  Polysilicon sales volume was 23,400 MT in Q4 2022, compared to 33,126 MT in Q3 2022  Polysilicon average total production cost(1) was $7.69/kg in Q4 2022, com

  7. Slide 7: Polysilicon facilities update

    Polysilicon facilities update Q4 2022 key facts Outlook § Quarterly production volume: 33,702 MT § Expected production volume in Q1 2023: § Sales volume: 23,400 MT 31,000 ~ 32,000 MT § Average selling prices: $37.41/kg § Expected production volume in the full year of 2023: § Average total production

  8. Slide 8: Polysilicon manufacturing overview

    Polysilicon manufacturing overview Production Volume (MT) 35,326 33,401 33,702 31,383 23,616 21,008 21,102 21,684 19,777 20,185 18,097 18,406 16,204 8,764 9,437 7,301 7,150 4,993 4,940 5,339 5,657 5,659 4,734 4,927 Q1 2017 Q3 Q1 2018 Q3 Q1 2019 Q3 Q1 2020 Q3 Q1 2021 Q3 Q1 2022 Q3 Cash cost and Depre

  9. Slide 9: Quarterly polysilicon sales volume and ASPs

    Quarterly polysilicon sales volume and ASPs Polysilicon external sales volume and ASPs Polysilicon external sales volume (MT) ASP ($/kg) 50,000 $37.41 $36.44 $35.00 45,000 $33.91 $32.76 $33.08 40,000 38,839 $30.00 37,545 $27.55 35,000 33,126 $25.00 30,000 $20.81 $20.00 25,000 $19.09 23,186 23,400 $1

  10. Slide 10: Income statement summary

    Income statement summary Q4 2022 Q3 2022 Q4 2021 ($ in millions, unless otherwise stated) Revenues 864.3 1,219.7 395.5 Gross profit 668.9 978.6 239.8 Gross margin 77.4% 80.2% 60.6% SG&A (44.0) (280.2) (10.2) R&D expense (2.7) (2.5) (1.3) Income from operations 623.1 693.0 228.1 Net income attributab

  11. Slide 11: Balance sheet summary

    Balance sheet summary As of As of As of ($ in millions) 12/31/2022 9/30/2022 12/31/2021 Cash, cash equivalent and restricted cash 3,520.4 3,051.1 724.0 Note receivables 1,131.6 1,571.7 365.9 Short-term investments 13.9 31.7 280.3 Inventories 169.5 73.3 327.8 Prepaid land use rights 80.3 77.6 40.7 Pr

  12. Slide 12: Cash flow summary

    Cash flow summary 12 months ended 12 months ended ($ in millions) 12/31/ 2022 12/31/ 2021 Net income 2,519.8 864.8 Adjustments to reconcile net income to net cash provided by operating 439.5 93.0 activities Changes in operating assets and liabilities (492.3) (318.8) Net cash provided by operating ac

  13. Slide 13: Non-GAAP reconciliation

    Non-GAAP reconciliation $ in thousands 3 months Ended 12 months Ended Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, 2022 2022 2022 2022 2022 Net income 526,428 545,820 179,014 2,519,777 864,847 Income tax expense 108,539 155,204 50,394 537,111 170,101 Interest income(expense), net (12,030) (7,589) 2,002 (

  14. 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

  15. Slide 15: Thank you

    @ DAQO NEW ENERGY Hit Ht | Thank you

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