CHONGQING, China, Nov. 15, 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 third quarter of 2016.
Third Quarter 2016 Financial and Operating Highlights
- Polysilicon production volume of 3,636 MT in Q3 2016, compared
to 3,570 MT in Q2 2016
- Polysilicon external sales volume(1) of 2,838 MT in
Q3 2016, compared to 2,931 MT in Q2 2016
- Polysilicon average total production cost(2) of
$8.66/kg in Q3 2016, compared to
$9.43/kg in Q2 2016
- Polysilicon average cash cost(2) of $6.88/kg in Q3 2016, compared to $7.42/kg in Q2 2016
- Average selling price (ASP) of polysilicon was $15.64/kg in Q3 2016, compared to $17.24/kg in Q2 2016
- Solar wafer sales volume of 14.4 million pieces in Q3 2016,
compared to 25.0 million pieces in Q2 2016
- Revenue of $54.3 million in Q3
2016, compared to $71.0 million in Q2
2016
- Non-GAAP gross margin(3) of 39.9% in Q3 2016,
compared to 43.9% in Q2 2016
- EBITDA (non-GAAP)(3) of $25.0
million in Q3 2016, compared to $34.7
million in Q2 2016
- EBITDA margin (non-GAAP)(3) of 46.0% in Q3 2016,
compared to 48.9% in Q2 2016
- Net income attributable to Daqo New Energy shareholders of
$11.2 million in Q3 2016, compared to
$19.8 in Q2 2016 and $3.1 million in Q3 2015
- Earnings per basic ADS of $1.07
in Q3 2016, compared to $1.90 in Q2
2016 and $0.29 in Q3 2015
- Adjusted net income (non-GAAP)(3) attributable to
Daqo New Energy shareholders of $13.2
million in Q3 2016, compared to $22.0
million in Q2 2016 and $6.3
million in Q3 2015
- Adjusted earnings per basic ADS (non-GAAP)(3) of
$1.26 in Q3 2016, compared to
$2.10 in Q2 2016 and $0.60 in Q3 2015
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Sep. 30,
2016
|
Jun. 30,
2016
|
Sep. 30,
2015
|
Revenues
|
54.3
|
71.0
|
46.6
|
Gross
profit
|
20.1
|
29.4
|
8.6
|
Gross
margin
|
37.1%
|
41.4%
|
18.4%
|
Income from
operations
|
16.4
|
26.1
|
6.7
|
Net income
attributable to Daqo New Energy
shareholders
|
11.2
|
19.8
|
3.1
|
Earnings per basic
ADS ($ per ADS)
|
1.07
|
1.90
|
0.29
|
Adjusted net income
(non-GAAP)(3) attributable
to Daqo New Energy shareholders
|
13.2
|
22.0
|
6.3
|
Adjusted earnings per
basic ADS (non-GAAP)(3)
($ per ADS)
|
1.26
|
2.10
|
0.60
|
Non-GAAP gross
profit(3)
|
21.6
|
31.2
|
10.9
|
Non-GAAP gross
margin(3) (%)
|
39.9%
|
43.9%
|
23.4%
|
EBITDA
(non-GAAP)(3)
|
25.0
|
34.7
|
15.0
|
EBITDA margin
(non-GAAP)(3)
|
46.0%
|
48.9%
|
32.1%
|
Polysilicon external
sales volume (MT)(1)
|
2,838
|
2,931
|
2,277
|
Polysilicon production
cost ($/kg)(2)
|
8.66
|
9.43
|
11.15
|
Polysilicon cash cost
(excl. dep'n) ($/kg)(2)
|
6.88
|
7.42
|
8.71
|
Notes:
|
(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.
|
(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 period indicted.
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 period
indicated.
|
(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
"During the third quarter of 2016, we successfully set new
records again in terms of polysilicon production volume and costs.
I would like to thank our entire team for their hard work and
dedication. Our polysilicon production for the third quarter
reached a record high of 3,636 MT, which surpassed our name plate
capacity of 12,150 MT per annum. Through technical and
process improvements, we also made significant progress in reducing
our production cost even further, achieving our lowest ever cost
structure with $8.66/kg in total cost
and $6.88/kg in cash cost," said Dr.
Gongda Yao, Chief Executive Officer of the Company.
"In the third quarter of 2016, downstream solar end market and
polysilicon market experienced significant volatility. Due to
a slow-down in China end market
demand and installation activities after China's FIT adjustment at the end of
June 2016, the market saw lower
levels of demand towards the end of the third quarter of
2016. Our third quarter ASP was $15.64/kg, compared to second quarter ASP of
$17.24. As a result, several
polysilicon manufacturers, both within China and abroad, partially shut down their
capacities due to weak polysilicon pricing. The resulting
reduction in polysilicon supply has helped to stabilize the market
and paved the way for price recovery. Nevertheless, as a
result of our continuous effort on technology improvements and cost
reduction, our quarterly average production cost has been further
reduced by 8% from $9.43/kg in the
second quarter to $8.66/kg in the
third quarter of 2016. "
"Due to a delay in the delivery of critical specialty
components, the start date of annual maintenance for our Xinjiang
polysilicon facility was postponed to October 3 from the second half of September as
originally planned. We conducted more than 500 maintenance
items, including special projects that are expected to improve our
manufacturing efficiency even further. The maintenance was
completed successfully, and we initiated a gradual restart of
production on October 24. In early November, production
resumed successfully and we reached full capacity
utilization. Overall, we estimate that the annual maintenance
has an impact of approximately 800 MT
to 900 MT on our fourth quarter
polysilicon production volume."
"In the third quarter of 2016, due to market volatility and
declining conditions for the solar wafer segment, we reduced our
wafer production utilization rate. As a result, the Company sold
14.4 million pieces of wafer in the third quarter, compared to 25.0
million pieces in the second quarter of 2016. With improving market
conditions, the Company ramped up wafer production utilization
starting from mid-October and reached full production in
November."
"The solar market began to recover in early October, with strong
customer demand and order momentum. Due to limited channel
inventory, polysilicon pricing has recovered particularly well,
with increases in orders from our broad based customers.
Wafer pricing also recovered significantly. During early
November, we also saw downstream product pricing recovering
meaningfully, including pricing for solar cells and solar
modules."
Outlook and Q4 2016 guidance
As a result of our annual maintenance, the Company expects to
sell approximately 2,200 MT to
2,300 MT of polysilicon to external
customers during the fourth quarter of 2016. The external
sales guidance excludes shipments of polysilicon to be used
internally by our Chongqing solar
wafer facility, which utilizes polysilicon for its wafer
manufacturing operation. Wafer sales volume is expected to be
approximately 20 million to 21 million pieces for the fourth
quarter of 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.
Third Quarter 2016 Results
Revenues
Revenues were $54.3 million,
compared to $71.0 million in the
second quarter of 2016 and $46.6
million in the third quarter of 2015.
Revenues from polysilicon sales to external customers were
$44.4 million, compared to
$50.5 million in the second quarter
of 2016 and $34.1 million in the
third quarter of 2015. External sales volume was 2,838 MT in
the third quarter of 2016, compared to 2,931 MT in the second
quarter of 2016. ASP of polysilicon was $15.64/kg in the third quarter of 2016, compared
to $17.24/kg in the second quarter of
2016. The decrease in polysilicon revenues from the second quarter
of 2016 was primarily due to lower polysilicon ASP and lower
external sales volume.
Revenues from wafer sales were $9.9
million, compared to $20.5
million in the second quarter of 2016 and $12.5 million in the third quarter of 2015. Wafer
sales volume was 14.4 million pieces, compared to 25.0 million
pieces in the second quarter of 2016. The decrease in wafer
revenues from the second quarter of 2016 was primarily due to lower
wafer ASP and lower sales volume.
Gross profit and margin
Gross profit was $20.1 million,
compared to $29.4 million in the
second quarter of 2016 and $8.6
million in the third quarter of 2015. Non-GAAP gross profit,
which excludes costs related to the non-operational polysilicon
operations in Chongqing, was
approximately $21.6 million, compared
to $31.2 million in the second
quarter of 2016 and $10.9 million in
the third quarter of 2015. Gross margin was 37.1%, compared to
41.4% in the second quarter of 2016 and 18.4% in the third quarter
of 2015.
In the third quarter of 2016, total costs related to the
non-operational Chongqing
polysilicon plant including depreciation were $1.5 million, compared to $1.8 million in the second quarter of 2016 and
$2.3 million in the third quarter of
2015. Excluding such costs, the non-GAAP gross margin was
approximately 39.9%, compared to 43.9% in the second quarter of
2016 and 23.4% in the third quarter of 2015.
Selling, general and administrative expenses
Selling, general and administrative expenses were $4.9 million, compared to $3.7 million in the second quarter of 2016 and
$2.9 million in the third quarter of
2015. The increase in selling, general and administrative expenses
as compared to the second quarter of 2016 was primarily due to
higher relocation and moving expenses related to the company's
relocation of its idle polysilicon manufacturing equipments from
Chongqing to Xinjiang, which were
$1.7 million during the third quarter
of 2016, compared to $0.6 million
during the second quarter of 2016, as well as higher non-cash
shared-based compensation expenses.
Research and development expenses
Research and development expenses were approximately
$1.0 million, compared to
$0.1 million in the second quarter of
2016 and $0.1 million in the third
quarter of 2015.
Other operating income
Other operating income was $2.2
million, compared to $0.6
million in the second quarter of 2016 and $1.1 million in the third 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 $16.4
million, compared to $26.1
million in the second quarter of 2016 and $6.7 million in the third quarter of 2015.
Operating margin was 30.3%, compared to 36.8% in the second
quarter of 2016 and 14.3% in the third quarter of 2015.
Interest expense
Interest expenses were $3.1
million, compared to $3.5
million in the second quarter of 2016 and $3.1 million in the third quarter of 2015.
EBITDA
EBITDA was $25.0 million, compared
to $34.7 million in the second
quarter of 2016 and $15.0 million in
the third quarter of 2015. EBITDA margin was 46.0%, compared to
48.9% in the second quarter of 2016 and 32.1% in the third quarter
of 2015.
Net income attributable to Daqo New Energy shareholders
and earnings per ADS
Net income attributable to Daqo New Energy shareholders was
$11.2 million, compared to
$19.8 million in the second quarter
of 2016 and $3.1 million in the third
quarter of 2015.
Earnings per basic ADS were $1.07,
compared to $1.90 in the second
quarter of 2016 and $0.29 in the
third quarter of 2015.
Financial Condition
As of September 30, 2016, the
Company had $29.2 million in cash and
cash equivalents and restricted cash, compared to $42.9 million as of June
30, 2016 and $68.7 million as
of September 30, 2015.
As of September 30, 2016, the
accounts receivable balance was $4.6
million, compared to $10.1
million as of June 30, 2016
and $15.4 million as of September 30, 2015.
As of September 30, 2016, the note
receivables balance was $17.0
million, compared to $14.8
million as of June 30, 2016
and $16.5 million as of September 30, 2015.
As of September 30, 2016, total
borrowings were $227.6 million, of
which $129.0 million were long-term
borrowings, compared to total borrowings of $227.9 million, including $118.4 million long-term borrowings, as of
June 30, 2016, and total borrowings
of $259.1 million, including
$144.0 million long-term borrowings,
as of September 30, 2015.
As of September 30, 2016, the note
payables balance was $14.4 million,
compared to $26.1 million as of
June 30, 2016 and $52.2 million as of September 30, 2015.
Cash Flows
For the nine months ended September 30,
2016, net cash provided by operating activities was
$70.9 million, compared to
$65.6 million in the same period of
2015.
For the nine months ended September 30,
2016, net cash used in investing activities was $51.0 million, compared to $82.7 million in the same period of 2015.
For the nine months ended September 30,
2016, net cash used in financing activities was $12.3 million, compared to net cash provided by
financing activities of $38.1 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 Time on
November 15, 2016.
The dial-in details for the live conference call are as
follows:
Participant dial in
(toll free):
|
+1-888-346-8982
|
Participant
international dial in:
|
+1-412-902-4272
|
|
|
China mainland toll
free:
|
4001-201203
|
China Beijing local
toll:
|
+86-10-5357-3132
|
Hong Kong toll
free:
|
800-905945
|
Hong Kong-local
toll:
|
+852-301-84992
|
|
Participants please
ask to be joined into the Daqo New Energy Corp. call.
|
You can also listen to the conference call via Webcast through
the URL: http://mms.prnasia.com/DQ/20161115/default.aspx
A replay of the call will be available 1 hour after the end of
the conference through November 22,
2016.
The conference call replay numbers are as follows:
US Toll
Free:
|
1-877-344-7529
|
International
Toll:
|
1-412-317-0088
|
Canada Toll
Free:
|
855-669-9568
|
Replay access
code:
|
10095716
|
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 fourth quarter of 2016 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
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
|
|
|
|
|
|
|
Revenues
|
|
$54,289
|
|
$71,021
|
|
$46,562
|
Cost of
revenues
|
|
(34,152)
|
|
(41,640)
|
|
(37,988)
|
Gross
profit
|
|
20,137
|
|
29,381
|
|
8,574
|
Operating
expenses
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(4,858)
|
|
(3,675)
|
|
(2,943)
|
Research and
development expenses
|
|
(997)
|
|
(148)
|
|
(94)
|
Other operating income
(expenses)
|
|
2,166
|
|
583
|
|
1,114
|
Total operating
expenses
|
|
(3,689)
|
|
(3,240)
|
|
(1,923)
|
Income from
operations
|
|
16,448
|
|
26,141
|
|
6,651
|
Interest
expense
|
|
(3,076)
|
|
(3,487)
|
|
(3,062)
|
Interest
income
|
|
123
|
|
171
|
|
51
|
Foreign exchange gain
(loss)
|
|
(1)
|
|
(3)
|
|
1
|
Income before
income taxes
|
|
13,494
|
|
22,822
|
|
3,641
|
Income tax (expenses)
benefit
|
|
(2,163)
|
|
(2,802)
|
|
(559)
|
Net income
|
|
11,331
|
|
20,020
|
|
3,082
|
Net income
attributable to non-controlling
interest
|
|
135
|
|
176
|
|
-
|
Net income
attributable to Daqo New Energy
Corp. shareholders
|
|
$11,196
|
|
$19,844
|
|
$3,082
|
|
|
|
|
|
|
|
Net income
|
|
11,331
|
|
20,020
|
|
3,082
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(882)
|
|
(8,116)
|
|
(5,815)
|
Total other
comprehensive income (loss)
|
|
(882)
|
|
(8,116)
|
|
(5,815)
|
Comprehensive income
(loss)
|
|
10,449
|
|
11,904
|
|
(2,733)
|
Comprehensive income
(loss) attributable to
noncontrolling interest
|
|
129
|
|
130
|
|
-
|
Comprehensive income
(loss) attributable to
Daqo New Energy Corp. shareholders
|
|
$10,320
|
|
$11,774
|
|
$(2,733)
|
|
|
|
|
|
|
|
Earnings (loss) per
ADS
|
|
|
|
|
|
|
Basic
|
|
1.07
|
|
1.90
|
|
0.29
|
Diluted
|
|
1.05
|
|
1.87
|
|
0.29
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
Basic
|
|
10,478,671
|
|
10,457,105
|
|
10,508,161
|
Diluted
|
|
10,642,235
|
|
10,596,753
|
|
10,630,996
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheet
|
(US dollars in
thousands)
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$21,630
|
|
$29,659
|
|
$27,955
|
Restricted
cash
|
|
7,531
|
|
13,201
|
|
40,729
|
Accounts receivable,
net
|
|
4,585
|
|
10,061
|
|
15,400
|
Note
receivables
|
|
17,037
|
|
14,798
|
|
16,474
|
Prepaid expenses and
other current assets
|
|
6,849
|
|
6,630
|
|
15,543
|
Advances to
suppliers
|
|
1,805
|
|
1,072
|
|
913
|
Inventories
|
|
14,905
|
|
9,539
|
|
12,157
|
Amounts due from
related parties
|
|
1,869
|
|
4,514
|
|
2,421
|
Total current
assets
|
|
76,211
|
|
89,474
|
|
131,592
|
Property, plant and
equipment, net
|
|
561,324
|
|
546,227
|
|
557,737
|
Prepaid land use
right
|
|
25,971
|
|
26,205
|
|
27,867
|
Deferred tax
assets
|
|
610
|
|
612
|
|
-
|
Investment in an
affiliate
|
|
182
|
|
182
|
|
-
|
Other non-current
assets
|
|
-
|
|
-
|
|
165
|
TOTAL
ASSETS
|
|
664,298
|
|
662,700
|
|
717,361
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term borrowings,
including current portion of
long-term borrowings
|
|
98,630
|
|
109,494
|
|
115,159
|
Accounts
payable
|
|
17,698
|
|
18,665
|
|
16,728
|
Note
payables
|
|
14,440
|
|
26,092
|
|
52,248
|
Advances from
customers
|
|
4,189
|
|
3,408
|
|
7,282
|
Payables for purchases
of property, plant and
equipment
|
|
43,696
|
|
39,681
|
|
51,359
|
Accrued expenses and
other current liabilities
|
|
8,744
|
|
11,973
|
|
8,934
|
Amounts due to related
parties
|
|
41,390
|
|
41,100
|
|
57,918
|
Income tax
payable
|
|
4,658
|
|
3,411
|
|
201
|
Total current
liabilities
|
|
233,445
|
|
253,824
|
|
309,829
|
Long-term
borrowings
|
|
128,975
|
|
118,368
|
|
143,949
|
Other long Term
Liabilities
|
|
24,252
|
|
24,414
|
|
25,980
|
TOTAL
LIABILITIES
|
|
386,672
|
|
396,606
|
|
479,758
|
EQUITY:
|
|
|
|
|
|
|
Ordinary
shares
|
|
26
|
|
26
|
|
26
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,149)
|
Additional paid-in
capital
|
|
239,566
|
|
238,484
|
|
234,807
|
Accumulated income
(losses)
|
|
36,304
|
|
25,107
|
|
(12,681)
|
Accumulated other
comprehensive income
|
|
1,841
|
|
2,717
|
|
14,084
|
Daqo New Energy Corp.'s
shareholders' equity
|
|
275,988
|
|
264,585
|
|
235,087
|
Noncontrolling
interest
|
|
1,638
|
|
1,509
|
|
2,516
|
Total equity
|
|
277,626
|
|
266,094
|
|
237,603
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
& EQUITY
|
|
664,298
|
|
662,700
|
|
717,361
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
For the nine months
ended September 30,
|
|
|
2016
|
|
2015
|
Operating
Activities:
|
|
|
|
|
Net income
|
|
39,741
|
|
3,338
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Share-based compensation
|
|
2,260
|
|
3.413
|
Inventory
write-down
|
|
-
|
|
62
|
Allowance
/ (reversal) for doubtful accounts
|
|
(1,063)
|
|
(824)
|
Depreciation of property, plant and equipment
|
|
25,727
|
|
22,230
|
Gain on disposal of
assets
|
|
(188)
|
|
-
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
15,914
|
|
(6,976)
|
Note
receivables
|
|
(6,221)
|
|
32,582
|
Prepaid
expenses and other current assets
|
|
5,063
|
|
(3,009)
|
Advances
to suppliers
|
|
(804)
|
|
408
|
Inventories
|
|
(4,472)
|
|
(2,863)
|
Amounts
due from related parties
|
|
(1,604)
|
|
3,299
|
Amounts
due to related parties
|
|
771
|
|
1,922
|
Prepaid
land use rights
|
|
435
|
|
457
|
Accounts
payable
|
|
669
|
|
339
|
Note
payables
|
|
(5,242)
|
|
13,973
|
Accrued
expenses and other current liabilities
|
|
355
|
|
189
|
Income tax
payable
|
|
3,718
|
|
201
|
Advances
from customers
|
|
(3,778)
|
|
(3,176)
|
Deferred
government subsidies
|
|
(334)
|
|
48
|
Net cash provided by
operating activities
|
|
70,947
|
|
65,613
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(62,044)
|
|
(68,745)
|
Increase (decrease) in
restricted cash
|
|
11,028
|
|
(19,082)
|
Proceeds from
disposition of Nanjing Daqo
|
|
-
|
|
5,110
|
Investment in an
affiliate
|
|
(188)
|
|
-
|
Net cash used in
investing activities
|
|
(51,204)
|
|
(82,717)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from related
parties loans
|
|
98,535
|
|
210,640
|
Repayment of related
parties loans
|
|
(103,174)
|
|
(230,668)
|
Proceeds from bank
borrowings
|
|
82,146
|
|
228,287
|
Repayment of bank
borrowings
|
|
(90,742)
|
|
(200,247)
|
Proceeds from
follow-on equity offering
|
|
-
|
|
28,679
|
Issuance cost for
follow-on equity offering
|
|
-
|
|
(682)
|
Proceeds from options
exercised
|
|
949
|
|
276
|
Repurchase
stock
|
|
-
|
|
(750)
|
Proceeds from the
issuance of additional ownership interests by
Xinjiang Daqo
|
|
-
|
|
2,516
|
Net cash provided by
(used in) financing activities
|
|
(12,286)
|
|
38,051
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalent
|
|
(317)
|
|
(60)
|
Net increase in cash
and cash equivalents
|
|
7,140
|
|
20,887
|
Cash and cash
equivalents at the beginning of the period
|
|
14,490
|
|
7,068
|
Cash and cash
equivalents at the end of the period
|
|
21,630
|
|
27,955
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
Three months
Ended
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
Gross
profit
|
|
20,137
|
|
29,381
|
|
8,574
|
Costs related to the
non-operational Chongqing
polysilicon operations
|
|
1,501
|
|
1,775
|
|
2,327
|
Non-GAAP gross
profit
|
|
21,638
|
|
31,156
|
|
10,901
|
|
|
|
Three months
Ended
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
Gross
margin
|
|
37.1%
|
|
41.4%
|
|
18.4%
|
Costs related to the
non-operational Chongqing
polysilicon operations (proportion of revenue)
|
|
2.8%
|
|
2.5%
|
|
5.0%
|
Non-GAAP gross
margin
|
|
39.9%
|
|
43.9%
|
|
23.4%
|
|
|
|
Three months
Ended
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
Net
income
|
|
11,331
|
|
20,020
|
|
3,082
|
Income tax
expense
|
|
2,163
|
|
2,802
|
|
559
|
Interest
expense
|
|
3,076
|
|
3,487
|
|
3,062
|
Interest
income
|
|
(123)
|
|
(171)
|
|
(51)
|
Depreciation
|
|
8,522
|
|
8,598
|
|
8,305
|
EBITDA
(non-GAAP)
|
|
24,969
|
|
34,736
|
|
14,957
|
EBIDTA margin
(non-GAAP)
|
|
46.0%
|
|
48.9%
|
|
32.1%
|
|
|
|
Three months
Ended
|
|
|
Sep. 30,
2016
|
|
Jun. 30,
2016
|
|
Sep. 30,
2015
|
Net income
attributable to
Daqo New Energy
Corp. shareholders
|
|
11,196
|
|
19,844
|
|
3,082
|
Costs related to the
non-operational Chongqing
polysilicon operations
|
|
1,501
|
|
1,775
|
|
2,327
|
Share-based
compensation
|
|
522
|
|
393
|
|
911
|
Adjusted Net
income (non-GAAP)
|
|
13,219
|
|
22,012
|
|
6,320
|
Adjusted Earnings
per basic ADS (non-GAAP)
|
|
$1.26
|
|
$2.10
|
|
$0.60
|
Adjusted Earnings
per diluted ADS (non-GAAP)
|
|
$1.24
|
|
$2.08
|
|
$0.59
|
For further information, please contact:
Daqo New Energy Corp.
Kevin He, Investor Relations
Phone: +86-187-1658-5553
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-third-quarter-2016-results-300362982.html
SOURCE Daqo New Energy Corp.