CHONGQING, China, Aug. 9, 2016 /PRNewswire/ -- Daqo New Energy
Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a
leading manufacturer of high-purity polysilicon for the global
solar PV industry, today announced its unaudited financial results
for the second quarter of 2016.
Second Quarter 2016 Financial and Operating
Highlights
- Polysilicon production volume of 3,570 MT in Q2 2016, compared
to 3,405 MT in Q1 2016
- Polysilicon external sales volume(1) of 2,931 MT in
Q2 2016, compared to 2,905 MT in Q1 2016
- Polysilicon average total production cost(2) of
$9.43/kg in Q2 2016, compared to
$9.65/kg in Q1 2016
- Polysilicon average cash cost(2) of $7.42/kg in Q2 2016, compared to $7.62/kg in Q1 2016
- Average selling price (ASP) of polysilicon was $17.24/kg in Q2 2016, representing a 25.7%
increase from $13.72/kg in Q1
2016
- Solar wafer sales volume of 25.0 million pieces in Q2 2016,
representing a 13.1% increase from 22.1 million pieces in Q1
2016
- Revenue of $71.0 million in Q2
2016, representing a 23.1% increase from $57.7 million in Q1 2016
- Non-GAAP gross margin(3) of 43.9% in Q2 2016, up
from 32.6% in Q1 2016
- EBITDA (non-GAAP)(3) of $34.7
million in Q2 2016, representing a 58.5% increase from
$21.9 million in Q1 2016
- EBITDA margin (non-GAAP)(3) of 48.9% in Q2 2016, up
from 38.0% in Q1 2016
- Net income attributable to Daqo New Energy shareholders of
$19.8 million in Q2 2016,
representing an increase of 138.6% from $8.3
million in Q1 2016. The Company incurred net loss
attributable to Daqo New Energy shareholders of $0.9 million in Q2 2015
- Earnings per basic ADS of $1.90
in Q2 2016, representing an increase of 137.5% from $0.80 in Q1 2016. The Company incurred loss per
basic ADS of $0.09 in Q2 2015
- Adjusted net income (non-GAAP)(3) attributable to
Daqo New Energy shareholders of $22.0
million in Q2 2016, representing an increase of 88.0% from
$11.7 million in Q1 2016 and 714.8%
from $2.7 million in Q2 2015
- Adjusted earnings per basic ADS (non-GAAP)(3) of
$2.10 in Q2 2016, representing an
increase of 87.5% from $1.12 in Q1
2016 and 707.7% from $0.26 in Q2
2015
Recent Corporate highlight
- On June 29, 2016, the Company's
subsidiary, Xinjiang Daqo New Energy Co., Ltd. ("Xinjiang Daqo",
New Third Board ticker: 837316) was listed on the National Equities
Exchange and Quotations, an emerging over-the-counter market in
China (the "New Third
Board").
- In June 2016, the Company
received approval from Chongqing Rural Commercial Bank for an
RMB500 million credit line of a
seven-year project finance loan. The Company intends to use the
proceeds of the loan for general corporate purposes, including the
capital expenditures related to its Phase 3A expansion project,
which is expected to increase the Company's annual polysilicon
manufacturing capacity from the current level of 12,150 MT to
18,000 MT by the end of the second quarter of 2017.
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|
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Three months
ended
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US$ millions
except as indicated
otherwise
|
Jun. 30,
2016
|
Mar. 31,
2016
|
Jun. 30,
2015
|
|
Revenues
|
71.0
|
57.7
|
34.3
|
|
Gross profit
|
29.4
|
16.7
|
3.6
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Gross margin
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41.4%
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29.0%
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10.5%
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Income from
operations
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26.1
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13.3
|
1.2
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Net income attributable to Daqo New Energy
shareholders
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19.8
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8.3
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(0.9)
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Earnings per basic ADS ($ per
ADS)
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1.90
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0.80
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(0.09)
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Adjusted net income (non-GAAP)(3)
attributable to Daqo New Energy
shareholders
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22.0
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11.7
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2.7
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Adjusted earnings per basic ADS
(non-GAAP)(3) ($ per
ADS)
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2.10
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1.12
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0.26
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Non-GAAP gross
profit(3)
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31.2
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18.8
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6.7
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Non-GAAP gross margin(3)
(%)
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43.9%
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32.6%
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19.6%
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EBITDA
(non-GAAP)(3)
|
34.7
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21.9
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8.4
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EBITDA margin(3)
(non-GAAP)
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48.9%
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38.0%
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24.6%
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Polysilicon external sales volume
(MT)(1)
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2,931
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2,905
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1,363
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Polysilicon production cost
($/kg)(2)
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9.43
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9.65
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12.98
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Polysilicon cash cost (excl. dep'n)
($/kg)(2)
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7.42
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7.62
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10.60
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Notes:
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(1) Our
polysilicon external sales volume excludes internal sales to our
Chongqing wafer manufacturing subsidiary, which utilizes
polysilicon as raw material for the production of solar wafers. The
sales volume is the quantity of goods that have been accepted by
customers, and thus the corresponding revenue has been recognized
during the period indicated.
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|
(2) Production
cost and cash cost only refer to production in our Xinjiang
polysilicon facilities. Production cost is calculated by the
inventoriable costs relating to production of polysilicon in
Xinjiang divided by the production volume in the quarter. Cash cost
is calculated by the inventoriable costs relating to production of
polysilicon excluding depreciation expense in Xinjiang, divided by
the production volume in the quarter.
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|
(3) Daqo New Energy provides
non-GAAP gross profit, non-GAAP gross margin, EBITDA, EBITDA
margin, adjusted net income (loss) attributable to our shareholders
and adjusted earnings (loss) per ADS on a non-GAAP basis to provide
supplemental information regarding its financial performance. For
more information on these non-GAAP financial measures, please see
the section captioned "Use of Non-GAAP Financial Measures" and the
tables captioned "Reconciliation of non-GAAP financial measures to
comparable US GAAP measures" set forth at the end of this press
release.
|
Commentary
"I would like to thank our entire team for the excellent
operational performance and financial results for the second
quarter of 2016," said Dr. Gongda Yao, Chief Executive Officer of
the Company. "During the quarter, we produced a record-high
of 3,570 MT of polysilicon, which surpassed our annual name plate
capacity of 12,150 MT. With our continuous effort on cost
reduction, we reached our lowest ever cost structure with
$9.43/kg in total cost and
$7.42/kg in cash cost. Our
current cost structure is 27% below Q2 2015 level, which at the
time was already one of the lowest in the world. We believe we
continue to be one of the lowest cost producers of polysilicon in
the world in Q2 2016, and with further technology upgrades and
process improvements, we believe we have a roadmap to reduce our
cost even lower. "
"In the second quarter of 2016, the demand for polysilicon was
very strong. We saw substantial increase in polysilicon orders and
shipments across a wide range of customers. With a tight
supply environment, market ASPs improved meaningfully, from
$13.72/kg in the first quarter to
$17.24/kg in the second quarter of
2016."
"Entering into the third quarter, we continue to see strong
demand and robust orders from customers. The market for
polysilicon within China remain
tight supplied, with low levels of inventory across domestic
suppliers and customers. Based on current market demand
trends, we are seeing a stable pricing environment, and we
anticipate Q3 ASP to be similar to Q2 levels. Considering
several of the major Chinese polysilicon producers including Daqo
plans to conduct annual facilities maintenance during the third
quarter, we anticipate that the tight-supply situation for
polysilicon sector within China
should continue in 2016."
"For the second quarter of 2016, we not only delivered the
best-ever quarter for the Company in terms of operational
performance, but also excellent financial results. We achieved
revenues of $71.0 million, with
non-GAAP gross margin of 43.9%, and EBITDA margin of 48.9%, and
GAAP earnings per basic ADS of $1.90. In particular, we generated strong
cash flow from operating activities of $66.6
million in the first half of this year. With our Phase
3A polysilicon facilities expected to come online in early 2017,
which will bring our annual capacity to 18,000 MT, we expect to
continue to deliver compelling financial performance and results to
our shareholders."
Outlook and Q3 2016 guidance
Since the ramp up of our Phase 2B capacity at the end of
June 2015, we have produced a total
of over 13,200 MT of polysilicon over the past four quarters, above
our nameplate capacity of 12,150 MT. As our Xinjiang
polysilicon manufacturing facilities have been operating
continuously for more than 12 months, it is necessary that we
conduct our annual scheduled maintenance during the third quarter
to ensure safe and smooth operations. We also plan to take
this opportunity to do preparation work for the interconnection
between existing facilities and Phase 3A facilities which are
expected to start pilot production early next year. The
entire annual maintenance schedule is expected to result in 15 to
20 days of suspension to polysilicon production for 2016. Due
to the long lead-time for procuring the specialty materials and
equipment required for the annual maintenance, we anticipate that
we would start the annual maintenance work in the second half of
September 2016. However, the start date of the annual
maintenance work depends on the scheduled delivery of such
specialty materials and equipment. Therefore, it is possible that
the annual maintenance start date may be
delayed.
As a result of the above mentioned factors, the Company expects
to sell approximately 2,550 MT to 2,600 MT of polysilicon to
external customers during Q3 2016. The external sales
guidance excludes shipments of polysilicon to be used internally by
our Chongqing solar wafer
facility, which is expected to utilize approximately 550 tons of
polysilicon during the quarter for its wafer manufacturing
operation. Wafer sales volume is expected to be approximately
24.0 million to 25.0 million pieces for Q3 2016.
This outlook reflects our current and preliminary view as of the
date of this press release and may be subject to change. Our
ability to achieve these projections is subject to risks and
uncertainties. See "Safe Harbor Statement" at the end of this press
release.
Second Quarter 2016 Results
Revenues
Revenues were $71.0 million,
representing a 23.1% increase from $57.7
million in the first quarter of 2016 and 107.0% from
$34.3 million in the second quarter
of 2015.
Revenues from polysilicon sales to external customers were
$50.5 million, compared to
$39.9 million in the first quarter of
2016 and $21.7 million in the second
quarter of 2015. External sales volume was 2,931 MT in the
second quarter of 2016, compared to 2,905 MT in the first quarter
of 2016. ASP of polysilicon was $17.24/kg in the second quarter of 2016,
increasing from $13.72/kg in the
first quarter of 2016. The increase in polysilicon revenues from
the first quarter of 2016 was primarily due to higher external
sales volume and higher ASP.
Revenues from wafer sales were $20.5
million, compared to $17.8
million in the first quarter of 2016 and $12.6 million in the second quarter of 2015.
Wafer sales volume was 25.0 million pieces, compared to 22.1
million pieces in the first quarter of 2016 and 18.3 million pieces
in the second quarter of 2015. The increase in wafer revenues from
the first quarter of 2016 was primarily due to higher sales
volume.
Gross profit and margin
Gross profit was $29.4 million,
increasing 76.0% from $16.7 million
in the first quarter of 2016 and 716.7% from $3.6 million in the second quarter of 2015.
Non-GAAP gross profit, which excludes costs related to the
non-operational polysilicon operations in Chongqing, was approximately $31.2 million, compared to $18.8 million in the first quarter of 2016 and
$6.7 million in the second quarter of
2015. Gross margin was 41.4%, compared to 29.0% in the first
quarter of 2016 and 10.5% in the second quarter of 2015.
In the second quarter of 2016, total costs related to the
non-operational Chongqing
polysilicon plant including depreciation were $1.8 million, compared to $2.0 million in the first quarter of 2016 and
$3.1 million in the second quarter of
2015. Excluding such costs, the non-GAAP gross margin was
approximately 43.9%, compared to 32.6% in the first quarter of 2016
and 19.6% in the second quarter of 2015.
Selling, general and administrative expenses
Selling, general and administrative expenses were $3.7 million, compared to $4.1 million in the first quarter of 2016 and
$2.8 million in the second quarter of
2015.
Research and development expenses
Research and development expenses were approximately
$0.1 million, compared to
$0.1 million in the first quarter of
2016 and $0.2 million in the second
quarter of 2015.
Other operating income
Other operating income was $0.6
million, compared to $0.7
million in the first quarter of 2016 and $0.7 million in the second quarter of 2015. Other
operating income mainly consists of unrestricted cash incentives
that the Company received from local government authorities, the
amount of which varies from period to period.
Income from operations and operating margin
Income from operations was $26.1
million, increasing 96.2% from $13.3
million in the first quarter of 2016 and was almost 21 times
as compared to $1.2 million in the
second quarter of 2015.
Operating margin was 36.8%, up from 23.1% in the first quarter
of 2016 and 3.6% in the second quarter of 2015.
Interest expense
Interest expenses were $3.5
million, compared to $3.9
million in the first quarter of 2016 and $2.6 million in the second quarter of 2015.
EBITDA
EBITDA was $34.7 million,
increasing 58.5% from $21.9 million
in the first quarter of 2016 and 313.1% from $8.4 million in the second quarter of 2015.
EBITDA margin was 48.9%, up from 38.0% in the first quarter of 2016
and 24.6% in the second quarter of 2015.
Net income / loss attributable to Daqo New Energy
shareholders and earnings per ADS
Net income attributable to Daqo New Energy shareholders was
$19.8 million, increasing 138.6% from
$8.3 million in the first quarter of
2016. The Company incurred net loss attributable to Daqo New Energy
Corp. shareholders of $0.9 million in
the second quarter of 2015.
Earnings per basic ADS were $1.90,
increased 137.5% from $0.80 in the
first quarter of 2016. The Company incurred loss per basic ADS of
$0.09 in the second quarter of
2015.
Financial Condition
As of June 30, 2016, the Company
had $42.9 million in cash and cash
equivalents and restricted cash, compared to $35.7 million as of March
31, 2016 and $95.1 million as
of June 30, 2015.
As of June 30, 2016, the accounts
receivable balance was $10.1 million,
compared to $15.4 million as of
March 31, 2016 and $7.0 million as of June
30, 2015.
As of June 30, 2016, the note
receivables balance was $14.8
million, compared to $25.3
million as of March 31, 2016
and $38.3 million as of June 30, 2015.
As of June 30, 2016, total
borrowings were $227.9 million, of
which $118.4 million were long-term
borrowings, compared to total borrowings of $241.3 million, including $114.8 million long-term borrowings, as of
March 31, 2016, and total borrowings
of $266.0 million, including
$100.0 million long-term borrowings,
as of June 30, 2015.
As of June 30, 2016, the note
payables balance was $26.1 million,
compared to $28.1 million as of
March 31, 2016 and $42.4 million as of June
30, 2015.
Cash Flows
For the six months ended June 30,
2016, net cash provided by operating activities was
$66.6 million, compared to
$32.1 million in the same period of
2015.
For the six months ended June 30,
2016, net cash used in investing activities was $37.6 million, compared to $56.2 million in the same period of 2015.
For the six months ended June 30,
2016, net cash used in financing activities was $13.5 million, compared to net cash provided by
financing activities of $75.7 million
in the same period of 2015.
Non-GAAP Financial Measures
To supplement Daqo'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 directly
comparable GAAP measures including non-GAAP gross profit and
non-GAAP gross margin; earnings before interest, taxes,
depreciation and amortization ("EBITDA") and EBITDA margin;
adjusted net income attributable to our shareholders and adjusted
earnings per basic ADS. Management believes that each of
these non-GAAP measures is useful to investors, enabling them to
better assess changes in key element of the Company's results of
operations across different reporting periods on a consistent
basis, independent of certain items as described below. Thus,
management believes that, used in conjunction with US GAAP
financial measures, these non-GAAP financial measures provide
investors with meaningful supplemental information to assess the
Company's operating results in a manner that is focused on its
ongoing, core operating performance. Management uses these non-GAAP
measures internally to assess the business, its financial
performance, current and historical results, as well as for
strategic decision-making and forecasting future results.
Given management's use of these non-GAAP measures, the Company
believes these measures are important to investors in understanding
the Company's operating results as seen through the eyes of
management. These non-GAAP measures are not prepared in
accordance with US GAAP or intended to be considered in isolation
or as a substitute for the financial information prepared and
presented in accordance with US GAAP; the non-GAAP measures should
be reviewed together with the US GAAP measures, and may be
different from non-GAAP measures used by other companies.
Non-GAAP gross profit and non-GAAP gross margin includes
adjustments for costs related to the non-operational polysilicon
assets in Chongqing. Such costs
mainly consist of non-cash depreciation costs, as well as utilities
and maintenance costs associated with the temporarily idle
polysilicon machinery and equipment, which will be or are in the
process of being relocated to the Company's Xinjiang polysilicon
manufacturing facility. The Company would expect a majority of
these costs, such as depreciation, will continue to occur as part
of the production cost at the Xinjiang facilities subsequent to the
completion of the relocation plan. Once these assets are placed
back in service, the Company will remove this adjustment from the
non-GAAP reconciling item. The Company also uses EBITDA, which
represents earnings before interest, taxes, depreciation and
amortization, and EBITDA margin, which represents the proportion of
EBITDA in revenue. Adjusted net income attributable to our
shareholders and adjusted earnings per basic ADS exclude costs
related to the non-operational polysilicon assets in Chongqing as described above. Adjusted
net income attributable to our shareholders and adjusted earnings
per basic ADS also exclude costs related to share-based
compensation. Share-based compensation is a non-cash expense that
varies from period to period. As a result, management excludes this
item from its internal operating forecasts and models. Management
believes that this adjustment for share-based compensation provides
investors with a basis to measure the company's core performance,
including compared with the performance of other companies, without
the period-to-period variability created by share-based
compensation.
A reconciliation of non-GAAP financial measures to comparable US
GAAP measures is presented later in this document.
Conference Call
The Company has scheduled a conference call to discuss the
results at 8:00 AM Eastern Daylight
Time on August 9, 2016.
The dial-in details for the live conference call are as
follows:
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Participant dial in (toll
free):
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+1-888-346-8982
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Participant international dial
in:
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+1-412-902-4272
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China mainland toll
free:
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4001-201203
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China Beijing local
toll:
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+86-105-357-3132
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Hong Kong toll free:
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800-905945
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Hong Kong-local toll:
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+852-301-84992
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Participants please ask to be joined into the Daqo
New Energy Corp. call.
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You can also listen to the conference call via Webcast through
the URL: http://mms.prnasia.com/DQ/20160809/default.aspx
A replay of the call will be available 1 hour after the end of
the conference through August 16,
2016.
The conference call replay numbers are as follows:
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US Toll Free:
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1-877-344-7529
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International Toll:
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1-412-317-0088
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Canada Toll Free:
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855-669-9568
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Replay access code:
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10090544
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Participants will be required to state their name and company
upon entering the call.
Investors will also have the opportunity to listen to the replay
over the Internet through the investor relations section of Daqo
New Energy's web site at: www.dqsolar.com
About Daqo New Energy Corp.
Founded in 2008, Daqo New Energy Corp. (NYSE: DQ) is a leading
manufacturer of high-purity polysilicon for the global solar PV
industry. As one of the world's lowest cost producers of
high-purity polysilicon and solar wafers, the Company primarily
sells its products to solar cell and solar module manufacturers.
The Company has built a manufacturing facility that is technically
advanced and highly efficient with a nameplate capacity of 12,150
metric tons in Xinjiang, China.
The Company also operates a solar wafer manufacturing facility in
Chongqing, China.
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," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the third quarter of 2016, the anticipated start
date of the 2016 annual maintenance and quotations from management
in this announcement, as well as Daqo New Energy's strategic and
operational plans, contain forward-looking statements. The Company
may also make written or oral forward-looking statements in its
reports filed or furnished to the U.S. Securities and Exchange
Commission, in its annual reports to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the demand
for photovoltaic products and the development of photovoltaic
technologies; global supply and demand for polysilicon; alternative
technologies in cell manufacturing; our ability to significantly
expand our polysilicon production capacity and output; the
reduction in or elimination of government subsidies and economic
incentives for solar energy applications; and our ability to lower
our production costs. Further information regarding these and other
risks is included in the reports or documents we have filed with,
or furnished to, the Securities and Exchange Commission. Daqo New
Energy does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
All information provided in this press release and in the
attachments is as of the date of this press release, and Daqo New
Energy undertakes no duty to update such information, except as
required under applicable law.
|
Daqo New Energy Corp.
|
|
Unaudited Preliminary Condensed Consolidated
Statement of Operations and Comprehensive
Income
|
|
(US dollars in thousands, except ADS and per ADS
data)
|
|
|
|
Three months
Ended
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
|
|
|
|
|
|
Revenues
|
|
$71,021
|
|
$57,676
|
|
$34,331
|
|
Cost of revenues
|
|
(41,640)
|
|
(40,940)
|
|
(30,740)
|
|
Gross profit
|
|
29,381
|
|
16,736
|
|
3,591
|
|
Operating expenses
|
|
|
|
|
|
|
|
Selling, general and administrative
expenses
|
|
(3,675)
|
|
(4,059)
|
|
(2,827)
|
|
Research and development
expenses
|
|
(148)
|
|
(82)
|
|
(203)
|
|
Other operating income
(expenses)
|
|
583
|
|
715
|
|
667
|
|
Total operating
expenses
|
|
(3,240)
|
|
(3,426)
|
|
(2,363)
|
|
Income from
operations
|
|
26,141
|
|
13,310
|
|
1,228
|
|
Interest expense
|
|
(3,487)
|
|
(3,905)
|
|
(2,635)
|
|
Interest income
|
|
171
|
|
96
|
|
132
|
|
Foreign exchange gain
(loss)
|
|
(3)
|
|
1
|
|
171
|
|
Income (loss) before income
taxes
|
|
22,822
|
|
9,502
|
|
(1,104)
|
|
Income tax (expenses)
benefit
|
|
(2,802)
|
|
(1,112)
|
|
178
|
|
Net income (loss)
|
|
20,020
|
|
8,390
|
|
(926)
|
|
Net income (loss) attributable to non-controlling
interest
|
|
176
|
|
65
|
|
-
|
|
Net income (loss) attributable to Daqo New Energy
Corp. shareholders
|
|
$19,844
|
|
$8,325
|
|
$(926)
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
20,020
|
|
8,390
|
|
(926)
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
|
(8,116)
|
|
2,018
|
|
(46)
|
|
Total other comprehensive income
(loss)
|
|
(8,116)
|
|
2,018
|
|
(46)
|
|
Comprehensive income
(loss)
|
|
11,904
|
|
10,408
|
|
(927)
|
|
Comprehensive income (loss) attributable to
noncontrolling interest
|
|
130
|
|
76
|
|
-
|
|
Comprehensive income (loss) attributable to Daqo New
Energy Corp. shareholders
|
|
$11,774
|
|
$10,332
|
|
$(972)
|
|
|
|
|
|
|
|
|
Earnings (loss) per
ADS
|
|
|
|
|
|
|
|
Basic
|
|
1.90
|
|
0.80
|
|
(0.09)
|
|
Diluted
|
|
1.87
|
|
0.79
|
|
(0.09)
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
|
10,457,105
|
|
10,434,199
|
|
10,506,506
|
|
Diluted
|
|
10,596,753
|
|
10,552,339
|
|
10,506,506
|
|
Daqo New Energy Corp.
|
|
Unaudited Consolidated Balance
Sheet
|
|
(US dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$29,659
|
|
$16,349
|
|
$58,638
|
|
Restricted cash
|
|
13,201
|
|
19,380
|
|
36,452
|
|
Accounts receivable,
net
|
|
10,061
|
|
15,396
|
|
7,042
|
|
Note receivables
|
|
14,798
|
|
25,273
|
|
38,284
|
|
Prepaid expenses and other current
assets
|
|
6,630
|
|
8,212
|
|
17,031
|
|
Advances to suppliers
|
|
1,072
|
|
1,028
|
|
1,794
|
|
Inventories
|
|
9,539
|
|
10,868
|
|
10,516
|
|
Amounts due from related
parties
|
|
4,514
|
|
1,499
|
|
10,395
|
|
Total current assets
|
|
89,474
|
|
98,005
|
|
180,152
|
|
Property, plant and equipment,
net
|
|
546,227
|
|
546,431
|
|
569,119
|
|
Prepaid land use
right
|
|
26,205
|
|
27,185
|
|
28,731
|
|
Deferred tax assets
|
|
612
|
|
632
|
|
-
|
|
Investment in an
affiliate
|
|
182
|
|
188
|
|
-
|
|
Other non-current
assets
|
|
-
|
|
-
|
|
169
|
|
TOTAL ASSETS
|
|
662,700
|
|
672,441
|
|
778,171
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings, including current portion of
long-term borrowings
|
|
109,494
|
|
126,461
|
|
166,014
|
|
Accounts payable
|
|
18,665
|
|
18,309
|
|
19,391
|
|
Note payables
|
|
26,092
|
|
28,140
|
|
42,446
|
|
Advances from
customers
|
|
3,408
|
|
7,724
|
|
7,862
|
|
Payables for purchases of property, plant and
equipment
|
|
39,681
|
|
41,379
|
|
60,588
|
|
Accrued expenses and other current
liabilities
|
|
11,973
|
|
8,937
|
|
8,111
|
|
Amounts due to related
parties
|
|
41,100
|
|
46,689
|
|
108,885
|
|
Income tax payable
|
|
3,411
|
|
1,190
|
|
(34)
|
|
Total current
liabilities
|
|
253,824
|
|
278,829
|
|
413,263
|
|
Long-term borrowings
|
|
118,368
|
|
114,824
|
|
100,019
|
|
Advances from customers – long term
portion
|
|
-
|
|
-
|
|
1,083
|
|
Other long Term
Liabilities
|
|
24,414
|
|
25,276
|
|
26,252
|
|
TOTAL LIABILITIES
|
|
396,606
|
|
418,929
|
|
540,617
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary shares
|
|
26
|
|
26
|
|
26
|
|
Treasury stock
|
|
(1,749)
|
|
(1,749)
|
|
(399)
|
|
Additional paid-in
capital
|
|
238,484
|
|
237,806
|
|
233,791
|
|
Accumulated income
(losses)
|
|
25,107
|
|
5,264
|
|
(15,765)
|
|
Accumulated other comprehensive
income
|
|
2,717
|
|
10,787
|
|
19,901
|
|
Daqo New Energy Corp.'s shareholders'
equity
|
|
264,585
|
|
252,134
|
|
237,554
|
|
Noncontrolling
interest
|
|
1,509
|
|
1,378
|
|
-
|
|
Total equity
|
|
266,094
|
|
253,512
|
|
237,554
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES &
EQUITY
|
|
662,700
|
|
672,441
|
|
778,171
|
|
Daqo New Energy Corp.
|
|
Unaudited Consolidated Statements of Cash
Flows
|
|
(US dollars in
thousands)
|
|
|
For the six months ended June
30,
|
|
|
2016
|
|
2015
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
Net income
|
|
28,410
|
|
252
|
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,737
|
|
2,501
|
|
|
Inventory
write-down
|
|
-
|
|
62
|
|
|
Allowance / (reversal) for doubtful
accounts
|
|
(849)
|
|
37
|
|
|
Depreciation of property, plant and
equipment
|
|
17,205
|
|
13,925
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
10,180
|
|
734
|
|
|
Note
receivables
|
|
(3,945)
|
|
12,020
|
|
|
Prepaid expenses and other current
assets
|
|
5,323
|
|
(4,179)
|
|
|
Advances to
suppliers
|
|
(67)
|
|
(439)
|
|
|
Inventories
|
|
930
|
|
(985)
|
|
|
Amounts due from related
parties
|
|
(4,303)
|
|
(4,581)
|
|
|
Amounts due to related
parties
|
|
517
|
|
6,884
|
|
|
Prepaid land use
rights
|
|
291
|
|
312
|
|
|
Accounts
payable
|
|
1,577
|
|
2,585
|
|
|
Note
payables
|
|
8,367
|
|
6,021
|
|
|
Accrued expenses and other current
liabilities
|
|
3,555
|
|
(856)
|
|
|
Income tax
payable
|
|
2,470
|
|
(34)
|
|
|
Advances from
customers
|
|
(4,586)
|
|
(1,778)
|
|
|
Deferred government
subsidies
|
|
(256)
|
|
(339)
|
|
|
Net cash provided by operating
activities
|
|
66,556
|
|
32,142
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property, plant and
equipment
|
|
(42,840)
|
|
(47,091)
|
|
|
Increase (decrease) in restricted
cash
|
|
5,422
|
|
(14,254)
|
|
|
Proceeds from disposition of Nanjing
Daqo
|
|
-
|
|
5,110
|
|
|
Investment in an
affiliate
|
|
(188)
|
|
-
|
|
|
Net cash used in investing
activities
|
|
(37,606)
|
|
(56,235)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from related parties
loans
|
|
69,508
|
|
122,045
|
|
|
Repayment of related parties
loans
|
|
(74,222)
|
|
(103,057)
|
|
|
Proceeds from bank
borrowings
|
|
41,309
|
|
138,929
|
|
|
Repayment of bank
borrowings
|
|
(50,488)
|
|
(110,428)
|
|
|
Proceeds from follow-on equity
offering
|
|
-
|
|
30,030
|
|
|
Issuance cost for follow-on equity
offering
|
|
-
|
|
(2,033)
|
|
|
Proceeds from options
exercised
|
|
389
|
|
171
|
|
|
Net cash provided by (used in) financing
activities
|
|
(13,504)
|
|
75,657
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalent
|
|
(277)
|
|
6
|
|
|
Net increase in cash and cash
equivalents
|
|
15,169
|
|
51,570
|
|
|
Cash and cash equivalents at the beginning of the
period
|
|
14,490
|
|
7,068
|
|
|
Cash and cash equivalents at the end of the
period
|
|
29,659
|
|
58,638
|
|
|
Daqo New Energy Corp.
|
|
Reconciliation of non-GAAP financial measures to
comparable US GAAP measures
|
|
(US dollars in thousands)
|
|
|
|
Three months Ended
|
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
Gross profit
|
|
29,381
|
|
16,736
|
|
3,591
|
|
|
Costs related to the non-operational Chongqing
polysilicon operations
|
|
1,775
|
|
2,049
|
|
3,139
|
|
|
Non-GAAP gross
profit
|
|
31,156
|
|
18,785
|
|
6,730
|
|
|
|
|
|
|
|
Three months Ended
|
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
Gross margin
|
|
41.4%
|
|
29.0%
|
|
10.5%
|
|
|
Costs related to the non-operational Chongqing
polysilicon operations (proportion of
revenue)
|
|
2.5%
|
|
3.6%
|
|
9.1%
|
|
|
Non-GAAP gross
margin
|
|
43.9%
|
|
32.6%
|
|
19.6%
|
|
|
|
|
|
|
|
Three months Ended
|
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
Net income /
(loss)
|
|
20,020
|
|
8,390
|
|
(926)
|
|
|
Income tax expense
|
|
2,802
|
|
1,112
|
|
(178)
|
|
|
Interest expense
|
|
3,487
|
|
3,905
|
|
2,635
|
|
|
Interest income
|
|
(171)
|
|
(96)
|
|
(132)
|
|
|
Depreciation
|
|
8,598
|
|
8,607
|
|
7,040
|
|
|
EBITDA
(non-GAAP)
|
|
34,736
|
|
21,918
|
|
8,439
|
|
|
EBIDTA margin
(non-GAAP)
|
|
48.9%
|
|
38.0%
|
|
24.6%
|
|
|
|
|
|
Three months
Ended
|
|
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
|
Jun. 30, 2015
|
|
|
Net income / (loss) attributable
to
Daqo New Energy Corp.
shareholders
|
|
19,844
|
|
8,325
|
|
(926)
|
|
|
Costs related to the non-operational Chongqing
polysilicon operations
|
|
1,775
|
|
2,049
|
|
3,139
|
|
|
Share-based
compensation
|
|
393
|
|
1,344
|
|
511
|
|
|
Adjusted Net income
(non-GAAP)
|
|
22,012
|
|
11,718
|
|
2,724
|
|
|
Adjusted Earnings per basic ADS
(non-GAAP)
|
|
$2.10
|
|
$1.12
|
|
$0.26
|
|
|
Adjusted Earnings per diluted ADS
(non-GAAP)
|
|
$2.08
|
|
$1.11
|
|
$0.26
|
|
For further information, please contact:
Daqo New Energy Corp.
Kevin He, Investor Relations
Phone: +86-23-6486-6556
Email: Kevin.he@daqo.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-second-quarter-2016-results-300310976.html
SOURCE Daqo New Energy Corp.