CHONGQING, China, Aug. 8, 2017 /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 2017.
Second Quarter 2017 Financial and Operating
Highlights
- Record-high polysilicon production volume of 4,993 MT in Q2
2017, increased from 4,927 MT in Q1 2017
- Record-high polysilicon external sales volume(1) of
4,497 MT in Q2 2017, increased from 4,223 MT in Q1 2017
- Polysilicon average total production cost(2) of
$8.53/kg in Q2 2017, compared to
$8.41/kg in Q1 2017
- Polysilicon average cash cost(2) of $6.77/kg in Q2 2017, compared to $6.68/kg in Q1 2017
- Average selling price (ASP) of polysilicon was $13.58/kg in Q2 2017, compared to $16.66/kg in Q1 2017
- Solar wafer sales volume of 27.0 million pieces in Q2 2017,
increased from 22.4 million pieces in Q1 2017
- Revenue of $76.0 million in Q2
2017, compared to $83.8 million in Q1
2017
- Gross profit of $24.2 million in
Q2 2017, compared to $35.9 million in
Q1 2017
- Gross margin of 31.9% in Q2 2017, compared to 42.8% in Q1
2017
- Non-GAAP gross margin(3) of 32.6% in Q2 2017,
compared to 44.0% in Q1 2017
- EBITDA (non-GAAP)(3) of $29.8
million in Q2 2017, compared to $41.7
million in Q1 2017
- EBITDA margin (non-GAAP)(3) of 39.2% in Q2 2017,
compared to 49.8% in Q1 2017
- Net income attributable to Daqo New Energy shareholders of
$12.1 million in Q2 2017, compared to
$22.9 million in Q1 2017 and
$19.8 million in Q2 2016
- Earnings per basic ADS of $1.15
in Q2 2017, compared to $2.18 in Q1
2017 and $1.90 in Q2 2016
- Adjusted net income (non-GAAP)(3) attributable to
Daqo New Energy shareholders of $13.8
million in Q2 2017, compared to $24.8
million in Q1 2017 and $22.0
million in Q2 2016
- Adjusted earnings per basic ADS (non-GAAP)(3) of
$1.31 in Q2 2017, compared to
$2.36 in Q1 2017 and $2.10 in Q2 2016
|
Three months
ended
|
US$
millions
|
June
30,
|
March
31,
|
June
30,
|
except
as indicated otherwise
|
2017
|
2017
|
2016
|
Revenues
|
76.0
|
83.8
|
71.0
|
Gross
profit
|
24.2
|
35.9
|
29.4
|
Gross
margin
|
31.9%
|
42.8%
|
41.4%
|
Operating
income
|
20.2
|
32.2
|
26.1
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
12.1
|
22.9
|
19.8
|
Earnings per basic ADS
($ per ADS)
|
1.15
|
2.18
|
1.90
|
Adjusted net income
(non-GAAP)(3) attributable to Daqo New Energy Corp.
shareholders
|
13.8
|
24.8
|
22.0
|
Adjusted earnings per
basic ADS (non-GAAP)(3) ($ per ADS)
|
1.31
|
2.36
|
2.10
|
Non-GAAP gross
profit(3)
|
24.8
|
36.9
|
31.2
|
Non-GAAP gross
margin(3)
|
32.6%
|
44.0%
|
43.9%
|
EBITDA
(non-GAAP)(3)
|
29.8
|
41.7
|
34.7
|
EBITDA
margin(3) (non-GAAP)
|
39.2%
|
49.8%
|
48.9%
|
Polysilicon sales
volume (MT) (1)
|
4,497
|
4,223
|
2,931
|
Polysilicon production
cost ($/kg)(2)
|
8.53
|
8.41
|
9.43
|
Polysilicon cash cost
(excl. dep'n) ($/kg)(2)
|
6.77
|
6.68
|
7.42
|
|
|
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 received 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
Daqo New Energy Corp. 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
"We are pleased to report that the second quarter of 2017 was a
solid quarter with new records on both polysilicon production
volume and external sales volume. During the quarter, we produced
4,993 MT of polysilicon and sold 4,497 MT to external
customers. We also conducted various experiments to improve
polysilicon quality, particularly for the mono-crystalline grade
polysilicon, which had a slight impact to overall production cost
and volume. However, we are seeing meaningful quality
improvements. Production volume as well as shipment of
mono-crystalline quality polysilicon hit a record high in June,"
said Dr. Gongda Yao, Chief Executive Officer of Daqo New
Energy.
"Due to downstream customer inventory management at the end of
the first quarter, ASP fell in April, but ASP started to recover in
May. Demand and pricing improved throughout the second
quarter, with the ASP in June approximately 15% higher than that in
April. So far in the third quarter, customer demand has
remained robust with pricing continuing to improve."
"In terms of the PV end market, China installed 24.4 GW of solar PV in the
first half of 2017, representing a new record high and a 9%
increase from the first half of 2016. For the full year of
2017, China's annual PV
installation forecast is currently expected to exceed 35GW. Based
on discussions with our customers, we believe that China's PV market demand continues to be
strong, driven by top-runner projects as well as distributed
generation. Globally, the U.S. and Indian markets are also seeing
strong PV product demand. Starting in late July, we have seen
a fairly significant shortage of polysilicon in the China market and continued improvements in
polysilicon pricing. With a much stronger than expected solar
PV installations in China, the
annual total global solar installation in 2017 is likely to exceed
80 GW for the first time ever. "
"During the second quarter of 2017, the company generated
$12.1 million in net income
attributable to Daqo New Energy shareholders and $29.8 million in EBITDA with an EBITDA margin of
39.2%. In particular, our operating cash flow remains
strong. In the first half of 2017, we generated $73.6 million in net cash provided by operating
activities."
"Going forward, we will continue our efforts to improve quality
throughout the year. With our high product quality and stable
supply capabilities, we continue to be a supplier of choice with
strong demand for our high quality polysilicon from our diverse
customer base."
Outlook and Q3 2017 guidance
The Company's annual maintenance for the Xinjiang polysilicon
facility is scheduled for late September and October. The
annual maintenance is anticipated to impact production volume by
approximately two weeks. As a result, the Company expects to
produce 4,200 MT to 4,500 MT of polysilicon and sell approximately
3,700 MT to 4,000 MT to external customers during the third quarter
of 2017. The above 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 25.0 million to 25.5
million pieces in the third quarter of 2017.
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 2017 Results
Revenues
Revenues were $76.0 million,
compared to $83.8 million in the
first quarter of 2017 and $71.0
million in the second quarter of 2016.
Revenues from polysilicon sales to external customers were
$61.1 million, compared to
$70.4 million in the first quarter of
2017 and $50.5 million in the second
quarter of 2016. External polysilicon sales volume was 4,497 MT,
increased from 4,223 MT in the first quarter of 2017 and 2,931 MT
in the second quarter of 2016. The average selling price (ASP) of
polysilicon was $13.58/kg in the
second quarter of 2017, compared to $16.66/kg in the first quarter of 2017. The
decrease in polysilicon revenues as compared to the first quarter
of 2017 was primarily due to lower ASPs, partially offset by higher
polysilicon sales volume.
Revenues from wafer sales were $14.9
million, compared to $13.4
million in the first quarter of 2017 and $20.5 million in the second quarter of 2016.
Wafer sales volume was 27.0 million pieces, compared to 22.4
million pieces in the first quarter of 2017 and 25.0 million pieces
in the second quarter of 2016.
Gross profit and margin
Gross profit was approximately $24.2
million, compared to $35.9
million in the first quarter of 2017 and $29.4 million in the second quarter of 2016.
Non-GAAP gross profit, which excludes costs related to the
non-operational polysilicon assets in Chongqing, was approximately $24.8 million, compared to $36.9 million in the first quarter of 2017 and
$31.2 million in the second quarter
of 2016.
Gross margin was 31.9%, compared to 42.8% in the first quarter
of 2017 and 41.4% in the second quarter of 2016.
In the second quarter of 2017, total costs related to the
non-operational Chongqing
polysilicon assets including depreciation were $0.5 million, decreased from $1.0 million in the first quarter of 2017 and
$1.8 million in the second quarter of
2016. Excluding costs related to the non-operational Chongqing polysilicon assets, the non-GAAP
gross margin was approximately 32.6%, compared to 44.0% in the
first quarter of 2017 and 43.9% in the second quarter of 2016.
Selling, general and administrative expenses
Selling, general and administrative expenses were $4.5 million, compared to $4.1 million in the first quarter of 2017 and
$3.7 million in the second quarter of
2016.
Research and development expenses
Research and development expenses were approximately
$0.3 million, compared to
$0.4 million in the first quarter of
2017 and $0.1 million in the second
quarter of 2016. The research and development expenses vary from
period to period reflecting the R&D activities that occur in
such period.
Other operating income
Other operating income was $0.8
million, compared to $0.8
million in the first quarter of 2017 and $0.6 million in the second quarter of 2016. Other
operating income was mainly composed of unrestricted cash
incentives that the Company received from local government
authorities, the amount of which varies from period to period.
Operating income and margin
As a result of the foregoing, operating income was $20.2 million, compared to $32.2 million in the first quarter of 2017 and
$26.1 million in the second quarter
of 2016.
Operating margin was 26.6%, compared to 38.4% in the first
quarter of 2017 and 36.8% in the second quarter of 2016.
Interest expense
Interest expense was $ 5.3million,
compared to $4.3 million in the first
quarter of 2017 and $3.5 million in
the second quarter of 2016.
EBITDA
EBITDA was $29.8 million, compared
to $41.7 million in the first quarter
of 2017 and $34.7 million in the
second quarter of 2016. EBITDA margin was 39.2%, compared to 49.8%
in the first quarter of 2017 and 48.9% in the second quarter of
2016.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
Net income attributable to Daqo New Energy Corp. shareholders
was $12.1 million in the second
quarter of 2017, compared to $22.9
million in the first quarter of 2017 and $19.8 million in the second quarter of 2016.
Earnings per basic ADS were $1.15
in the second quarter of 2017, compared to $2.18 in the first quarter of 2017 and
$1.90 in the second quarter of
2016.
Financial Condition
As of June 30, 2017, the Company
had $49.8 million in cash and cash
equivalents and restricted cash, compared to $61.2 million as of March
31, 2017 and $42.9 million as
of June 30, 2016. As of June 30, 2017, the accounts receivable balance
was $3.8 million, compared to
$13.1 million as of March 31, 2017. As of June
30, 2017, the notes receivable balance was $10.5 million, compared to $11.7 million as of March
31, 2017. As of June 30, 2017,
total borrowings were $219.3 million,
of which $123.1 million were
long-term borrowings, compared to total borrowings of $236.0 million, including $129.2 million long-term borrowings, as of
March 31, 2017.
Cash Flows
For the six months ended June 30,
2017, net cash provided by operating activities was
$73.6 million, increased from
$66.6 million in the same period of
2016.
For the six months ended June 30,
2017, net cash used in investing activities was $36.0 million, compared to $37.6 million in the same period of 2016. The net
cash used in investing activities in 2017 was primarily related to
the capital expenditure of Xinjiang Phase 3A polysilicon
projects.
For the six months ended June 30,
2017, net cash used in financing activities was $23.4 million, compared to net cash used in
financing activities of $13.5 million
in the same period of 2016. The increase was primarily due to
repayment of related parties loans.
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 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 Daqo New Energy Corp.
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 elements
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 expects 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 revenues. Adjusted net income attributable to Daqo
New Energy Corp. 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 Daqo New Energy
Corp. 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 U.S. Eastern Time
on August 8, 2017 (8:00 PM Beijing / Hong
Kong time on the same day).
The dial-in details for the earnings conference call are as
follows:
Participant dial in
(U.S. toll free):
|
+1-888-346-8982
|
Participant
international dial in:
|
+1-412-902-4272
|
China mainland toll
free:
|
4001-201203
|
Hong Kong toll
free:
|
800-905945
|
Hong Kong local dial
in:
|
+852-301-84992
|
Participants please ask to be joined into the Daqo New Energy
Corp. call. Please dial in 10 minutes before the call is scheduled
to begin.
You can also listen to the conference call via Webcast through
the URL:
http://mms.prnasia.com/DQ/20170808/default.aspx
A replay of the call will be available 1 hour after the
conclusion of the conference call through August 15, 2017.
The dial in details for the conference call replay are as
follows:
U.S. toll
free:
|
+1-877-344-7529
|
International dial
in:
|
+1-412-317-0088
|
Canada toll
free:
|
855-669-9658
|
Replay access
code:
|
1011073
|
To access the replay
using an international dial-in number, please select the link
below.
https://services.choruscall.com/ccforms/replay.html
|
Participants will be asked to provide their name and company
name upon entering the call.
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 18,000
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 2017 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
Consolidated Statement of Operations and Comprehensive
Income
|
(US dollars in
thousands, except ADS and per ADS data)
|
|
|
For the three
months Ended
|
|
|
Jun 30,
2017
|
|
Mar 31,
2017
|
|
Jun 30,
2016
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$76,002
|
|
$83,808
|
|
$71,021
|
|
Cost of
revenues
|
|
(51,757)
|
|
(47,914)
|
|
(41,640)
|
|
Gross
profit
|
|
24,245
|
|
35,894
|
|
29,381
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(4,514)
|
|
(4,060)
|
|
(3,675)
|
|
Research and
development expenses
|
|
(279)
|
|
(448)
|
|
(148)
|
|
Other operating
income
|
|
751
|
|
775
|
|
583
|
|
Total operating
expenses
|
|
(4,042)
|
|
(3,733)
|
|
(3,240)
|
|
Income from
operations
|
|
20,203
|
|
32,161
|
|
26,141
|
|
Interest
expense
|
|
(5,288)
|
|
(4,344)
|
|
(3,487)
|
|
Interest
income
|
|
111
|
|
75
|
|
171
|
|
Foreign exchange gain
(loss)
|
|
2
|
|
1
|
|
(3)
|
|
Income before income
taxes
|
|
15,028
|
|
27,893
|
|
22,822
|
|
Income tax
expense
|
|
(2,768)
|
|
(4,742)
|
|
(2,802)
|
|
Net income
|
|
12,260
|
|
23,151
|
|
20,020
|
|
Net income
attributable to noncontrolling interest
|
|
135
|
|
257
|
|
176
|
|
Net income
attributable to Daqo New Energy
Corp. shareholders
|
|
$12,125
|
|
$22,894
|
|
$19,844
|
|
|
|
|
|
|
|
|
|
Net income
|
|
12,260
|
|
23,151
|
|
20,020
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
4,904
|
|
2,166
|
|
(8,116)
|
|
Total other
comprehensive income (loss)
|
|
4,904
|
|
2,166
|
|
(8,116)
|
|
Comprehensive
income
|
|
17,164
|
|
25,317
|
|
11,904
|
|
Comprehensive income
attributable to
noncontrolling interest
|
|
167
|
|
270
|
|
130
|
|
Comprehensive income
attributable to Daqo
New Energy Corp. shareholders
|
|
$16,997
|
|
$25,047
|
|
$11,774
|
|
|
|
|
|
|
|
|
|
Income per
ADS
|
|
|
|
|
|
|
|
Basic
|
|
1.15
|
|
2.18
|
|
1.90
|
|
Diluted
|
|
1.14
|
|
2.14
|
|
1.87
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
|
10,529,730
|
|
10,519,425
|
|
10,457,105
|
|
Diluted
|
|
10,678,845
|
|
10,691,911
|
|
10,596,753
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheet
|
(US dollars in
thousands)
|
|
|
Jun 30,
2017
|
|
Mar 31,
2017
|
|
Jun 30,
2016
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$30,443
|
|
$44,651
|
|
$29,659
|
|
Restricted
cash
|
|
19,403
|
|
16,596
|
|
13,201
|
|
Accounts receivable,
net
|
|
3,796
|
|
13,121
|
|
10,061
|
|
Notes
Receivable
|
|
10,540
|
|
11,702
|
|
14,798
|
|
Prepaid expenses and
other current assets
|
|
7,011
|
|
6,069
|
|
6,630
|
|
Advances to
suppliers
|
|
1,688
|
|
1,283
|
|
1,072
|
|
Inventories
|
|
15,981
|
|
16,268
|
|
9,539
|
|
Amount due from related
parties
|
|
1,386
|
|
345
|
|
4,514
|
|
Total current
assets
|
|
90,248
|
|
110,035
|
|
89,474
|
|
Property, plant and
equipment, net
|
|
554,062
|
|
559,900
|
|
546,227
|
|
Prepaid land use
right
|
|
25,125
|
|
24,871
|
|
26,205
|
|
Deferred tax
assets
|
|
600
|
|
591
|
|
612
|
|
Investment accounted
for under cost-method
|
|
596
|
|
586
|
|
182
|
|
TOTAL
ASSETS
|
|
670,631
|
|
695,983
|
|
662,700
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings,
including current
portion of long-term borrowings
|
|
96,158
|
|
106,842
|
|
109,494
|
|
Accounts
payable
|
|
20,972
|
|
23,130
|
|
18,665
|
|
Notes
payable
|
|
26,080
|
|
23,749
|
|
26,092
|
|
Advances from
customers
|
|
10,483
|
|
1,025
|
|
3,408
|
|
Payables for purchases
of property, plant and
equipment
|
|
25,839
|
|
39,367
|
|
39,681
|
|
Accrued expenses and
other current liabilities
|
|
9,426
|
|
11,417
|
|
11,973
|
|
Amount due to related
parties
|
|
12,162
|
|
32,925
|
|
41,100
|
|
Income tax
payable
|
|
6,386
|
|
7,095
|
|
3,411
|
|
Total current
liabilities
|
|
207,506
|
|
245,550
|
|
253,824
|
|
Long-term
borrowings
|
|
123,145
|
|
129,198
|
|
118,368
|
|
Other long Term
Liabilities
|
|
23,509
|
|
23,304
|
|
24,414
|
|
TOTAL
LIABILITIES
|
|
354,160
|
|
398,052
|
|
396,606
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
27
|
|
27
|
|
26
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
242,372
|
|
240,996
|
|
238,484
|
|
Retained
earnings
|
|
75,451
|
|
63,326
|
|
25,107
|
|
Accumulated other
comprehensive income
|
|
(1,697)
|
|
(6,569)
|
|
2,717
|
|
Total Daqo New Energy
Corp.'s shareholders'
equity
|
|
314,404
|
|
296,031
|
|
264,585
|
|
Noncontrolling
interest
|
|
2,067
|
|
1,900
|
|
1,509
|
|
Total
equity
|
|
316,471
|
|
297,931
|
|
266,094
|
|
TOTAL LIABILITIES
& EQUITY
|
|
670,631
|
|
695,983
|
|
662,700
|
|
|
|
|
|
|
|
|
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
For the six months
ended June 30,
|
|
|
2017
|
|
2016
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
35,411
|
|
28,410
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Share-based compensation
|
|
1,985
|
|
1,737
|
|
Provision/(reversal) of allowance for doubtful accounts
|
|
(3)
|
|
(849)
|
|
Depreciation of property, plant and equipment
|
|
19,208
|
|
17,205
|
|
Loss on
disposal of assets
|
|
23
|
|
-
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
1,161
|
|
10,180
|
|
Notes
receivable
|
|
2,800
|
|
(3,945)
|
|
Prepaid
expenses and other current assets
|
|
1,211
|
|
5,323
|
|
Advances
to suppliers
|
|
76
|
|
(67)
|
|
Inventories
|
|
(3,403)
|
|
930
|
|
Amounts
due from related parties
|
|
182
|
|
(4,303)
|
|
Amounts
due to related parties
|
|
275
|
|
517
|
|
Prepaid
land use rights
|
|
285
|
|
291
|
|
Accounts
payable
|
|
1,776
|
|
1,577
|
|
Notes
payable
|
|
8,302
|
|
8,367
|
|
Accrued
expenses and other current liabilities
|
|
904
|
|
3,555
|
|
Income tax
payable
|
|
958
|
|
2,470
|
|
Advances
from customers
|
|
2,782
|
|
(4,586)
|
|
Deferred
government subsidies
|
|
(334)
|
|
(256)
|
|
Net cash provided by
operating activities
|
|
73,599
|
|
66,556
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(32,894)
|
|
(42,840)
|
|
Investment accounted
for under the cost-method
|
|
-
|
|
(188)
|
|
Decrease/(Increase) in
restricted cash
|
|
(3,125)
|
|
5,422
|
|
Net cash used in
investing activities
|
|
(36,019)
|
|
(37,606)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from related
party loans
|
|
39,697
|
|
69,508
|
|
Repayment of related
party loans
|
|
(59,565)
|
|
(74,222)
|
|
Proceeds from bank
borrowings
|
|
32,953
|
|
41,309
|
|
Repayment of bank
borrowings
|
|
(36,800)
|
|
(50,488)
|
|
Cash received from
exercises of options
|
|
275
|
|
389
|
|
Net cash (used in)
provided by financing activities
|
|
(23,440)
|
|
(13,504)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
316
|
|
(277)
|
|
Net increase in cash
and cash equivalents
|
|
14,456
|
|
15,169
|
|
Cash and cash
equivalents at the beginning of the period
|
|
15,987
|
|
14,490
|
|
Cash and cash
equivalents at the end of the period
|
|
30,443
|
|
29,659
|
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
|
For the three
months ended
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun. 30,
2016
|
Gross
profit
|
|
24,245
|
|
35,894
|
|
29,381
|
Costs related to the
non-operational
Chongqing
polysilicon operations
|
|
544
|
|
1,003
|
|
1,775
|
Non-GAAP gross
profit
|
|
24,789
|
|
36,897
|
|
31,156
|
|
For the three
months ended
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun. 30,
2016
|
|
Gross
margin
|
|
31.9%
|
|
42.8%
|
|
41.4%
|
|
Costs related to the
non-operational
Chongqing polysilicon
operations
(proportion of
revenue)
|
|
0.7%
|
|
1.2%
|
|
2.5%
|
|
Non-GAAP gross
margin
|
|
32.6%
|
|
44.0%
|
|
43.9%
|
|
|
For the three
months ended
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun. 30,
2016
|
|
Net
income
|
|
12,260
|
|
23,151
|
|
20,020
|
|
Income tax
expense
|
|
2,768
|
|
4,742
|
|
2,802
|
|
Interest
expense
|
|
5,288
|
|
4,344
|
|
3,487
|
|
Interest
income
|
|
(111)
|
|
(75)
|
|
(171)
|
|
Depreciation
|
|
9,621
|
|
9,587
|
|
8,598
|
|
EBITDA
(non-GAAP)
|
|
29,826
|
|
41,749
|
|
34,736
|
|
EBIDTA margin
(non-GAAP)
|
|
39.2%
|
|
49.8%
|
|
48.9%
|
|
|
For the three
months ended
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun. 30,
2016
|
|
Net income
attributable to Daqo
New
Energy Corp. shareholders
|
|
12,125
|
|
22,894
|
|
19,844
|
|
Costs related to the
non-operational
Chongqing polysilicon
operations
|
|
544
|
|
1,003
|
|
1,775
|
|
Share-based
compensation
|
|
1,104
|
|
882
|
|
393
|
|
Adjusted net
income (non-GAAP)
attributable to Daqo New Energy
Corp.
shareholders
|
|
13,773
|
|
24,779
|
|
22,012
|
|
Adjusted earnings
per basic ADS
(non-GAAP)
|
|
1.31
|
|
2.36
|
|
$2.10
|
|
Adjusted earnings
per diluted ADS
(non-GAAP)
|
|
1.29
|
|
2.32
|
|
$2.08
|
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations
Phone: +86-187-1658-5553
dqir@daqo.com
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-second-quarter-2017-results-300500951.html
SOURCE Daqo New Energy Corp.