SHIHEZI, China, May 21, 2019 /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 first quarter of 2019.
First Quarter 2019 Financial and Operating Highlights
- Polysilicon production volume of 8,764 MT in Q1 2019, compared
to 7,301 MT in Q4 2018
- Polysilicon external sales volume of 8,450 MT in Q1 2019, compared to 7,030 MT in Q4 2018
- Polysilicon average total production cost(1) of
$7.42 /kg in Q1 2019, compared to
$7.94/kg in Q4 2018
- Polysilicon average cash cost(1) of $6.20/kg in Q1 2019, compared to $6.64/kg in Q4 2018
- Polysilicon average selling price (ASP) was $9.55/kg in Q1 2019, compared to $9.69/kg in Q4 2018
- Revenue from continuing operations was $81.2 million in Q1 2019, compared to
$75.6 million in Q4 2018
- Gross profit from continuing operations was $18.3 million in Q1 2019, compared to
$16.9 million in Q4 2018. Gross
margin from continuing operations was 22.6% in Q1 2019, compared to
22.4% in Q4 2018
- EBITDA (non-GAAP)(2) from continuing operations was
$20.0 million in Q1 2019, compared to
$29.5 million in Q4 2018
- EBITDA margin (non-GAAP)(2) from continuing
operations was 24.6% in Q1 2019, compared to 39.1% in Q4 2018
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy shareholders was $11.1
million in Q1 2019, compared to $15.7
million in Q4 2018 and $32.9
million in Q1 2018
- Adjusted earnings per basic American Depository Share (ADS)
(non-GAAP)(2) of $0.83 in
Q1 2019, compared to $1.18 in Q4
2018, and $3.03 in Q1 2018
- Net income from continuing operations was $5.9 million in Q1 2019, compared to $17.1 million in Q4 2018 and $29.9 million in Q1 2018
- Net income from discontinued operations was $0.8 million in Q1 2019, compared to net loss
from discontinued operations of $5.7
million in Q4 2018 and net income from discontinued
operations of $2.1 million in Q1
2018
- Net income attributable to Daqo New Energy shareholders was
$6.6 million in Q1 2019, compared to
$11.4 million in Q4 2018 and
$31.6 million in Q1 2018.
- Earnings per basic ADS was $0.50
in Q1 2019, compared to $0.86 in Q4
2018, and $2.91 in Q1 2018
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Mar 31,
2019
|
Dec 31,
2018
|
Mar 31,
2018
|
Revenues
|
81.2
|
75.6
|
95.6
|
Gross
profit
|
18.3
|
16.9
|
43.1
|
Gross
margin
|
22.6%
|
22.4%
|
45.0%
|
Operating
income
|
9.2
|
20.3
|
39.2
|
Net income from
continuing operations
|
5.9
|
17.1
|
29.9
|
Income (loss) from
discontinued operations, net
of tax
|
0.8
|
(5.7)
|
2.1
|
Net income
attributable to Daqo New Energy
Corp. shareholders
|
6.6
|
11.4
|
31.6
|
Earnings per basic
ADS ($ per ADS)
|
0.50
|
0.86
|
2.91
|
Adjusted net income
(non-GAAP)(2) attributable
to Daqo New Energy Corp. shareholders
|
11.1
|
15.7
|
32.9
|
Adjusted earnings per
basic ADS (non-GAAP)(2)
($ per ADS)
|
0.83
|
1.18
|
3.03
|
EBITDA
(non-GAAP)(2) from continuing
operations
|
20.0
|
29.5
|
48.6
|
EBITDA margin
(non-GAAP) (2) from continuing
operations
|
24.6%
|
39.1%
|
50.8%
|
Polysilicon sales
volume (MT)
|
8,450
|
7,030
|
5,411
|
Polysilicon average
total production cost
($/kg)(1)
|
7.42
|
7.94
|
9.19
|
Polysilicon average
cash cost (excl. dep'n)
($/kg)(1)
|
6.20
|
6.64
|
7.53
|
Notes:
(1) 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 indicated. 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.
(2) Daqo New Energy provides EBITDA from continuing operations,
EBITDA margin from continuing operations adjusted net income
attributable to Daqo New Energy Corp. shareholders and adjusted
earnings 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.
Management Remarks
"We are very pleased to report solid operational and financial
performance for the first quarter of 2019, during which we achieved
record-high production and sales volumes, as well as our most
competitive cost structure," commented Mr. Longgen Zhang, CEO of
Daqo New Energy. "During the quarter, our polysilicon facilities
were running at full capacity and produced 8,764 MT and sold
8,450 MT of polysilicon. We were also
able to successfully reduce our total production cost and cash cost
to $7.42/kg and $6.20/kg, respectively, our lowest ever."
"We are currently undertaking a capacity debottlenecking project
to gradually upgrade several older CVD furnaces with improved
technology, allowing us to increase production capacity by
additional 5,000 MT. This project is
progressing well and we expect to complete the project ahead of
schedule in early June 2019. The
ramp-up process of this debottlenecking project will temporarily
impact production volumes and cost and as a result we expect to
produce approximately 7,200 to 7,400
MT of polysilicon at total production cost of $8.0~8.5/kg
during the second quarter of 2019. Once our facilities are fully
ramped up in June, we anticipate our total annual production
capacity will reach 35,000 MT and our
production costs will return to the current level of approximately
$7.5/kg."
"Our Phase 4A project is also progressing smoothly and remains
on schedule. The foundation work has been completed and the
construction of various buildings and structures are progressing as
planned. The initial equipment installation has already begun and
is planned to continue through the third quarter of 2019. Based on
our current assessment, we expect to complete Phase 4A by the end
of 2019 and ramp up to full capacity of 70,000 MT by the end of the first quarter of
2020."
"China installed approximately
5.2GW of new solar PV installations during the first quarter of
2019. While installation numbers for the second quarter of 2019
haven't been released yet, we believe they will likely be even
lower. Installations should significantly pickup in the second half
of this year as China's solar PV
policy is gradually rolled out. Grid parity projects will be the
first batch to start installations and then followed by subsidized
projects which will bid for the total three
billion RMB of subsidy. Market consensus indicates that
China will install approximately
35-40 GW in 2019, which means solar project installation volumes
during the second half could potentially double or even triple
those in the first half. As polysilicon is the key raw material of
solar PV modules, we believe demand for polysilicon will
significantly increase in the second half of 2019."
"We are optimistic about China's booming demand for solar PV in the
second half of this year. Since May, the market conditions for
polysilicon have shown signs of improvement as prices appear to
have bottomed out. While Daqo remained solidly profitable in the
first quarter with our low cost and high mix of mono-grade
polysilicon products, we believe the current challenging pricing
environment for polysilicon has resulted in serious financial
losses for many of the existing polysilicon producers. According to
news from China Silicon Industry Association, at least three major
Chinese polysilicon producers have shut down their facilities for
maintenance since April and May, resulting in reduced supply. In
addition, the ramp-up process of other Chinese players' new
capacities have not been as fast and smooth as they expected,
including production delays and unscheduled shutdowns. Furthermore,
these new capacities are generally unable to immediately produce
high quality mono-grade polysilicon due to quality issues. This has
resulted in increased pricing spread between mono-grade and
multi-grade polysilicon. Looking into the future, we believe
current oversupply will be alleviated by a reduction in supply from
high cost players. For the second half of 2019, we anticipate the
booming demand from China's
domestic PV market will significantly improve the overall
supply-demand situation, particularly for the tightly-supplied
mono-grade polysilicon."
"We are confident to overcome the temporary market challenges
with our low cost structure and first class product quality.
Moreover, our Phase 4A project is expected to double our capacity
and reduce our cost even further, strengthening our leading
position as one of the world's most competitive polysilicon
manufacturers."
Outlook and guidance
Due to the significant pricing spread between mono-grade and
multi-grade polysilicon, the Company is currently maximizing the
amount of mono-grade polysilicon as percentage of our total
production volume to approximately 80% in April and May. In
addition, the ramp up process of the Company's debottlenecking
project is expected to take place ahead of schedule in early June.
As such, the Company may see some impact on production volume and
cost structure in the second quarter.
The Company expects to produce approximately 7,200 to
7,400 MT of polysilicon with total
production cost of $8.0~8.5/kg during the second quarter of 2019
and sell approximately 7,100MT to
7,300MT of polysilicon to external
customers during the second quarter of 2019. The Company expects
the total production cost will come back to normal at the level of
$7.5/kg in the third quarter of 2019.
For the full year of 2019, the Company expects to produce
approximately 37,000 to 40,000 MT of
polysilicon, inclusive of the impact of the Company's annual
facility maintenance.
This outlook reflects Daqo New Energy's current and preliminary
view as of the date of this press release and may be subject to
changes. The Company's ability to achieve these projections is
subject to risks and uncertainties. See "Safe Harbor Statement" at
the end of this press release.
First Quarter 2019 Results
Revenues
Revenues were $81.2 million,
compared to $75.6 million in the
fourth quarter of 2018 and $95.6
million in the first quarter of 2018. The sequential
increase in revenues was primarily due to higher polysilicon sales
volumes partially offset by lower ASPs.
Gross profit and margin
Gross profit was $18.3million,
compared to $16.9 million in the
fourth quarter of 2018 and $43.1 million in the first quarter of 2018.
Gross margin was 22.6%, compared to 22.4% in the fourth quarter of
2018 and 45.0% in the first quarter of 2018. The sequential
increase was primarily due to lower average polysilicon production
cost, partially offset by lower ASPs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $7.9 million, compared to $8.2 million in the fourth quarter of 2018 and
$3.8 million in the first quarter of
2018. The year-over-year increase in SG&A was primarily due to
an increase in non-cash share-based compensation costs related to
the Company's share incentive plan.
Research and development expenses
Research and development (R&D) expenses were $1.3 million, compared to $1.0 million in the fourth quarter of 2018 and
$0.1 million in the first quarter of
2018. Research and development expenses could vary from period to
period and reflected R&D activities that took place during the
quarter.
Income from operations and operating margin
As a result of the foregoing, income from operations was
$9.2 million, compared to
$20.3 million in the fourth quarter
of 2018 and $39.2 million in the
first quarter of 2018.
Operating margin was 11.3%, compared to 26.8% in the fourth
quarter of 2018 and 41.0% in the first quarter of 2018.
Interest expense
Interest expense was $2.0 million,
compared to $1.9 million in the
fourth quarter of 2018 and $3.7
million in the first quarter of 2018.
EBITDA
EBITDA from continuing operations was $20.0 million, compared to $29.5 million in the fourth quarter of 2018 and
$48.6 million in the first quarter of
2018. EBITDA margin was 24.6%, compared to 39.1% in the fourth
quarter of 2018 and 50.8% in the first quarter of 2018.
Income(loss) from discontinued operations, net of
tax
During the third quarter of 2018, the Company decided to
discontinue its solar wafer manufacturing operations. Net income
from discontinued operations was $0.8
million in the first quarter of 2019, compared to net loss
from discontinued operations of $5.7
million in the fourth quarter of 2018 and net income from
discontinued operations of $2.1
million in the first quarter of 2018. The net income from
discontinued operations during the quarter was mainly due to the
disposal of fixed assets which were impaired in 2018 and previous
years.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
As a result of the aforementioned, net income attributable to
Daqo New Energy Corp. shareholders was $6.6
million, compared to $11.4
million in the fourth quarter of 2018 and $31.6 million in the first quarter of 2018.
Earnings per basic ADS of $0.50,
compared to $0.86 in the fourth
quarter of 2018, and $2.91 in the
first quarter of 2018.
Financial Condition
As of March 31, 2019, the Company
had $113.7 million in cash, and cash
equivalents and restricted cash, compared to $94.0 million as of December 31, 2018 and $79.0 million as of March
31, 2018. As of March 31,
2019, the accounts receivable balance was $2.2 million, compared to $1.2 million as of December 31, 2018 and $12
thousand as of March 31, 2018.
As of March 31, 2019, the notes
receivable balance was $0.7 million,
compared to $8.1 million as of
December 31, 2018 and $45.2 million as of March
31, 2018. As of March 31,
2019, total borrowings were $193.0
million, of which $149.7
million were long-term borrowings, compared to total
borrowings of $171.5 million,
including $133.3 million long-term
borrowings, as of December 31, 2018
and total borrowings of $189.6
million, including $106.8
million long-term borrowings, as of March 31, 2018.
Cash Flows
For the three months ended March 31,
2019, net cash provided by operating activities was
$48.5 million, compared to
$22.0 million in the same period of
2018.
For the three months ended March 31,
2019, net cash used in investing activities was $38.6 million, compared to $11.8 million in the same period of 2018. The net
cash used in investing activities in 2018 and 2017 was primarily
related to the capital expenditure on Xinjiang Phase 3B and 4A polysilicon projects.
For the three months ended March 31,
2019, net cash provided by financing activities was
$7.2 million, compared to net cash
used in financing activities of $2.4
million in the same period of 2018.
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 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. Our
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, our 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. Our 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 our
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 our
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.
The Company 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. 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, and the Company had removed this adjustment from the
non-GAAP reconciling item since the fourth quarter of 2018, since
as of the end of the third quarter of 2018, all of the polysilicon
machinery and equipment had been either relocated to Xinjiang,
disposed, or planned to be disposed of in due time. 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, our
management excludes this item from its internal operating forecasts
and models. Our 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
May 21, 2019. (8:00 PM Beijing / Hong
Kong time on the same day).
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:
|
+86-105-357-3132
|
Hong Kong toll
free:
|
800-905945
|
Hong Kong-local
toll:
|
+852-301-84992
|
|
Participants please
dial in 10 minutes before the call is scheduled to begin and ask to
be joined into the Daqo New Energy Corp. call.
|
You can also listen to the conference call via Webcast through
the URL: https://services.choruscall.com/links/dq190521.html
A replay of the call will be available 1 hour after the end of
the conference through May 27,
2019.
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:
|
10131478
|
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 required to state their name and company upon
entering the call.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company) is a
leading manufacturer of high-purity polysilicon for the global
solar PV industry. Founded in 2008, the Company is one of the
world's lowest cost producers of high-purity polysilicon. Daqo's
highly-efficient and technically advanced manufacturing facility in
Xinjiang, China, currently has a
nameplate annual polysilicon production capacity of 30,000 metric
tons, and the Company is undergoing a debottlenecking project and a
capacity expansion project and expects to increase its annual
polysilicon production capacity to 70,000 metric tons in the first
quarter of 2020.
For more information, please visit http://daqo.gotoip1.com/
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 second quarter and the full year of 2019 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; the Company's ability to significantly expand its
polysilicon production capacity and output; the reduction in or
elimination of government subsidies and economic incentives for
solar energy applications; and the Company's ability to lower its
production costs. Further information regarding these and other
risks is included in the reports or documents the Company has filed
with, or furnished to, the Securities and Exchange Commission. All
information provided in this press release is as of the date
hereof, and the Company undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
Daqo New Energy
Corp.
|
Unaudited
Condensed Consolidated Statement of Operations and Comprehensive
Income
|
(US dollars in
thousands, except ADS and per ADS data)
|
|
|
|
Three months
Ended
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Mar 31,
2018
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$81,204
|
|
$75,603
|
|
$95,644
|
|
Cost of
revenues
|
|
(62,863)
|
|
(58,665)
|
|
(52,560)
|
|
Gross
profit
|
|
18,341
|
|
16,938
|
|
43,084
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(7,935)
|
|
(8,240)
|
|
(3,753)
|
|
Research and
development expenses
|
|
(1,297)
|
|
(970)
|
|
(121)
|
|
Other operating income,
net
|
|
70
|
|
12,527
|
|
32
|
|
Total operating
(expenses) /income
|
|
(9,162)
|
|
3,317
|
|
(3,842)
|
|
Income from
operations
|
|
9,179
|
|
20,255
|
|
39,242
|
|
Interest
expense
|
|
(2,021)
|
|
(1,891)
|
|
(3,663)
|
|
Interest
income
|
|
324
|
|
441
|
|
144
|
|
Foreign exchange
loss
|
|
(189)
|
|
(102)
|
|
(3)
|
|
Income before income
taxes
|
|
7,293
|
|
18,703
|
|
35,720
|
|
Income tax
expense
|
|
(1,429)
|
|
(1,563)
|
|
(5,864)
|
|
Net income from
continuing operations
|
|
5,864
|
|
17,140
|
|
29,856
|
|
Income/(loss) from discontinued
operations, net of tax
|
|
778
|
|
(5,693)
|
|
2,117
|
|
Net income
|
|
6,642
|
|
11,447
|
|
31,973
|
|
Net income
attributable to non-controlling interest
|
|
-
|
|
66
|
|
339
|
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
$6,642
|
|
$11,381
|
|
$31,634
|
|
|
|
|
|
|
|
|
|
Net income
|
|
6,642
|
|
11,447
|
|
31,973
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
13,014
|
|
935
|
|
14,826
|
|
Total other
comprehensive income
|
|
13,014
|
|
935
|
|
14,826
|
|
Comprehensive
income
|
|
19,656
|
|
12,382
|
|
46,799
|
|
Comprehensive income
attributable to non-controlling
interest
|
|
-
|
|
69
|
|
446
|
|
Comprehensive income
attributable to Daqo New Energy
Corp. shareholders
|
|
$19,656
|
|
$12,313
|
|
$46,353
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
ADS
|
|
|
|
|
|
|
|
-Continuing
operations
|
|
0.44
|
|
1.29
|
|
2.71
|
|
-Discontinued
operations
|
|
0.06
|
|
(0.43)
|
|
0.20
|
|
Basic
|
|
0.50
|
|
0.86
|
|
2.91
|
|
|
|
|
|
|
|
|
|
-Continuing
operations
|
|
0.42
|
|
1.27
|
|
2.60
|
|
-Discontinued
operations
|
|
0.06
|
|
(0.42)
|
|
0.19
|
|
Diluted
|
|
0.48
|
|
0.85
|
|
2.79
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
|
13,360,729
|
|
13,237,220
|
|
10,853,166
|
|
Diluted
|
|
13,749,959
|
|
13,455,067
|
|
11,341,860
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Mar 31,
2018
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$65,111
|
|
$65,419
|
|
$60,791
|
|
Restricted
cash
|
|
48,560
|
|
28,609
|
|
18,185
|
|
Short-term
investments
|
|
-
|
|
21,807
|
|
-
|
|
Accounts receivable,
net
|
|
2,204
|
|
1,181
|
|
12
|
|
Notes
receivable
|
|
714
|
|
8,111
|
|
45,237
|
|
Prepaid expenses and
other current assets
|
|
9,717
|
|
10,336
|
|
7,030
|
|
Advances to
suppliers
|
|
2,846
|
|
3,328
|
|
1,110
|
|
Inventories
|
|
18,882
|
|
15,449
|
|
16,045
|
|
Amount due from related
parties
|
|
4,179
|
|
815
|
|
1,538
|
|
Current assets
associated with discontinued
operation
|
|
2,748
|
|
5,014
|
|
19,586
|
|
Total current
assets
|
|
154,961
|
|
160,069
|
|
169,534
|
|
Property, plant and
equipment, net
|
|
686,056
|
|
611,616
|
|
508,341
|
|
Prepaid land use
right
|
|
22,669
|
|
22,249
|
|
24,818
|
|
Deferred tax
assets
|
|
842
|
|
821
|
|
740
|
|
Investment in an
affiliate
|
|
666
|
|
650
|
|
712
|
|
Non-current asset
associated with discontinued
operation
|
|
58,868
|
|
59,524
|
|
95,285
|
|
TOTAL
ASSETS
|
|
924,062
|
|
854,929
|
|
799,430
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings,
including current portion
of long-term borrowings
|
|
43,210
|
|
38,206
|
|
82,872
|
|
Accounts
payable
|
|
9,926
|
|
9,195
|
|
19,949
|
|
Notes
payable
|
|
66,322
|
|
29,209
|
|
26,232
|
|
Advances from customers
- short term portion
|
|
9,658
|
|
10,214
|
|
9,662
|
|
Payables for purchases
of property, plant and
equipment
|
|
25,085
|
|
27,221
|
|
15,766
|
|
Accrued expenses and
other current liabilities
|
|
9,330
|
|
9,418
|
|
12,318
|
|
Amount due to related
parties
|
|
2,143
|
|
2,260
|
|
1,684
|
|
Income tax
payable
|
|
6,293
|
|
5,455
|
|
11,650
|
|
Current liabilities
associated with discontinued
operation
|
|
7,591
|
|
18,676
|
|
43,891
|
|
Total current
liabilities
|
|
179,558
|
|
149,854
|
|
224,024
|
|
Long-term
borrowings
|
|
149,744
|
|
133,312
|
|
106,766
|
|
Advance from customers
- long term portion
|
|
5,364
|
|
7,269
|
|
-
|
|
Amount due to related
parties - long term
portion
|
|
16,390
|
|
15,992
|
|
-
|
|
Other long-term
liabilities
|
|
21,848
|
|
21,463
|
|
24,004
|
|
Deferred tax
liabilities
|
|
1,174
|
|
1,185
|
|
-
|
|
Non-current liabilities
associated with
discontinued operation
|
|
721
|
|
723
|
|
2,451
|
|
TOTAL
LIABILITIES
|
|
374,799
|
|
329,798
|
|
357,245
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
34
|
|
33
|
|
27
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
373,156
|
|
368,681
|
|
247,935
|
|
Retained
earnings
|
|
178,040
|
|
171,398
|
|
164,907
|
|
Accumulated other
comprehensive
(loss)/income
|
|
(218)
|
|
(13,232)
|
|
27,826
|
|
Total Daqo New Energy
Corp.'s shareholders'
equity
|
|
549,263
|
|
525,131
|
|
438,946
|
|
Non-controlling
interest
|
|
-
|
|
-
|
|
3,239
|
|
Total
equity
|
|
549,263
|
|
525,131
|
|
442,185
|
|
TOTAL LIABILITIES
& EQUITY
|
|
924,062
|
|
854,929
|
|
799,430
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
For the three months
ended
|
|
|
Mar 31,
2019
|
|
Mar 31,
2018
|
|
Operating
Activities:
|
|
|
|
|
Net income
|
$6,642
|
|
$31,973
|
|
Less: Income from
discontinued operations, net of tax
|
778
|
|
2,117
|
|
Net income from
continuing operations
|
5,864
|
|
29,856
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Share-based compensation
|
4,474
|
|
859
|
|
Depreciation of property, plant and equipment
|
8,698
|
|
3,040
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(989)
|
|
705
|
|
Notes
receivable
|
7,556
|
|
(23,384)
|
|
Prepaid
expenses and other current assets
|
872
|
|
(197)
|
|
Advances
to suppliers
|
562
|
|
517
|
|
Inventories
|
(3,031)
|
|
213
|
|
Amount
due from related parties
|
-
|
|
(464)
|
|
Prepaid
land use rights
|
133
|
|
141
|
|
Accounts
payable
|
499
|
|
(72)
|
|
Notes
payable
|
21,850
|
|
2,212
|
|
Accrued
expenses and other current liabilities
|
(320)
|
|
1,084
|
|
Income tax
payable
|
698
|
|
(2,000)
|
|
Advances
from customers
|
(2,880)
|
|
(7,222)
|
|
Amount due
to related parties
|
(16)
|
|
(5)
|
|
Deferred
tax liabilities
|
(40)
|
|
-
|
|
Deferred
government subsidies
|
(148)
|
|
(157)
|
|
Net cash provided by
operating activities-continuing operations
|
43,782
|
|
5,126
|
|
Net cash provided by operating
activities-discontinued operations
|
4,699
|
|
16,839
|
|
Net cash provided by
operating activities
|
48,481
|
|
21,965
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
(57,462)
|
|
(7,356)
|
|
Purchases of land use
right
|
(4,271)
|
|
-
|
|
Repayment of
short-term investment
|
22,224
|
|
-
|
|
Proceeds from disposal
of investment
|
642
|
|
-
|
|
Net cash used in
investing activities-continuing operations
|
(38,867)
|
|
(7,356)
|
|
Net cash provided
by/(used in) investing activities-discontinued
operations
|
232
|
|
(4,476)
|
|
Net cash used in
investing activities
|
(38,635)
|
|
(11,832)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from related
parties loans
|
1,482
|
|
-
|
|
Proceeds from bank
borrowings
|
51,856
|
|
2,359
|
|
Repayment of bank
borrowings
|
(34,788)
|
|
(4,718)
|
|
Cash received from
exercise of options
|
-
|
|
104
|
|
Net cash provided by/(used in)
financing activities - continuing
operations
|
18,550
|
|
(2,255)
|
|
Net cash used in
financing activities – discontinued operations
|
(11,382)
|
|
(173)
|
|
Net cash provided by/(used in)
financing activities
|
7,168
|
|
(2,428)
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
2,429
|
|
2,606
|
|
Net increase in cash,
cash equivalents and restricted cash
|
19,443
|
|
10,311
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
95,120
|
|
72,667
|
|
Cash, cash
equivalents and restricted cash at the end of the period
|
114,563
|
|
82,978
|
|
The following table
provides a reconciliation of cash, cash equivalents, and restricted
cash reported within
the statement of financial position that sum to the total of the
same such amounts shown in the statement of cash flows.
|
|
|
|
Mar 31,
2019
|
|
Mar 31,
2018
|
Cash and cash
equivalents
|
|
65,999
|
|
62,386
|
Restricted
cash
|
|
48,564
|
|
20,592
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
114,563
|
|
82,978
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
Three months
Ended
|
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Mar. 31,
2018
|
|
Net income from
continuing operations
|
|
5,864
|
|
17,140
|
|
29,856
|
|
Income tax
expense
|
|
1,429
|
|
1,563
|
|
5,864
|
|
Interest
expense
|
|
2,021
|
|
1,891
|
|
3,663
|
|
Interest
income
|
|
(324)
|
|
(441)
|
|
(144)
|
|
Depreciation &
amortization
|
|
11,010
|
|
9,386
|
|
9,349
|
|
EBITDA
(non-GAAP)
|
|
20,000
|
|
29,539
|
|
48,588
|
|
EBIDTA margin
(non-GAAP)
|
|
24.6%
|
|
39.1%
|
|
50.8%
|
|
|
|
|
Three months
Ended
|
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Mar. 31,
2018
|
|
Net income
attributable to Daqo New Energy
Corp. shareholders
|
|
6,642
|
|
11,381
|
|
31,634
|
|
Share-based
compensation
|
|
4,474
|
|
4,278
|
|
859
|
|
Costs related to the
Chongqing polysilicon
operations
|
|
-
|
|
-
|
|
389
|
|
Adjusted net
income (non-GAAP)
attributable to Daqo New Energy Corp.
shareholders
|
|
11,116
|
|
15,659
|
|
32,882
|
|
Adjusted earnings
per basic ADS (non-
GAAP)
|
|
$0.83
|
|
$1.18
|
|
$3.03
|
|
Adjusted earnings
per diluted ADS (non-
GAAP)
|
|
$0.81
|
|
$1.16
|
|
$2.90
|
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information about Daqo New Energy, please visit
http://daqo.gotoip1.com/
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-first-quarter-2019-results-300853823.html
SOURCE Daqo New Energy Corp.