SHIHEZI, China, Aug. 18, 2020 /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 2020.
Second Quarter 2020 Financial and Operating
Highlights
- Polysilicon production volume was 18,097 MT in Q2 2020,
compared to 19,777 MT in Q1 2020
- Polysilicon sales volume was 18,881 MT in Q2 2020, compared to
19,101 MT in Q1 2020
- Polysilicon average total production cost(1) was
$5.79/kg in Q2 2020, compared to
$5.86/kg in Q1 2020
- Polysilicon average cash cost(1) was $4.87/kg in Q2 2020, compared to $5.01/kg in Q1 2020
- Polysilicon average selling price (ASP) was $7.04/kg in Q2 2020, compared to $8.79/kg in Q1 2020
- Revenue from continuing operations was $133.5 million in Q2 2020, compared to
$168.8 million in Q1 2020
- Gross profit from continuing operations was $22.7 million in Q2 2020, compared to
$56.6 million in Q1 2020. Gross
margin from continuing operations was 17.0% in Q2 2020, compared to
33.5% in Q1 2020
- EBITDA (non-GAAP)(2) from continuing operations was
$26.8 million in Q2 2020, compared to
$63.1 million in Q1 2020. EBITDA
margin (non-GAAP)(2) from continuing operations was
20.0% in Q2 2020, compared to 37.4% in Q1 2020
- Net income attributable to Daqo New Energy Corp. shareholders
was $2.4 million in Q2 2020, compared
to $33.2 million in Q1 2020
- Earnings per basic American Depositary Share (ADS) was
$0.17 in Q2 2020, compared to
$2.37 in Q1 2020
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $6.9
million in Q2 2020, compared to $37.7
million in Q1 2020
- Adjusted earnings per basic ADS (non-GAAP)(2) was
$0.49 in Q2 2020, compared to
$2.69 in Q1 2020
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Jun 30,
2020
|
Mar 31,
2020
|
Jun 30,
2019
|
Revenues
|
133.5
|
168.8
|
66.0
|
Gross
profit
|
22.7
|
56.6
|
8.6
|
Gross
margin
|
17.0%
|
33.5%
|
13.0%
|
Income / (loss) from
operations
|
10.8
|
45.8
|
(0.4)
|
Net income / (loss)
attributable to Daqo New Energy
Corp. shareholders
|
2.4
|
33.2
|
(2.2)
|
Earnings / (loss) per
basic ADS ($ per ADS)
|
0.17
|
2.37
|
(0.16)
|
Adjusted net income
(non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
|
6.9
|
37.7
|
2.3
|
Adjusted earnings per
basic ADS (non-GAAP)(2)
($ per ADS)
|
0.49
|
2.69
|
0.17
|
EBITDA
(non-GAAP)(2) from continuing operations
|
26.8
|
63.1
|
10.2
|
EBITDA margin
(non-GAAP)(2) from continuing
operations
|
20.0%
|
37.4%
|
15.5%
|
Polysilicon sales
volume (MT)
|
18,881
|
19,101
|
7,130
|
Polysilicon average
total production cost ($/kg)(1)
|
5.79
|
5.86
|
8.12
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
4.87
|
5.01
|
6.65
|
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, 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
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "The
second quarter of 2020 was a particularly challenging time for the
polysilicon industry. Beginning in late March, the global spread of
COVID-19 and related lockdowns, particularly in the U.S.,
Europe and certain emerging
markets, resulted in significant disruptions to demand for solar PV
products. End-market customers delayed module orders and shipments
due to uncertainties about the duration and economic impact of the
pandemic, as well as logistical challenges. This led to short-term
market uncertainty and volatility across the entire solar PV
industry during the second quarter. This abnormal market
environment, with its sharp and sudden drop in demand, resulted in
significant negative impact to polysilicon pricing for the quarter.
Fortunately, the impact was temporary, and the market began to
recover in May with orders and demand normalizing in June,
supported by a strong end-market in China and abroad. We are pleased that despite
such challenges faced by the industry during the period, Daqo New
Energy was able to generate positive net income for the quarter,
further demonstrating the strength and resilience of our business
model and our proven low cost structure."
"Towards the end of the second quarter, we began to see very
positive momentum in solar PV demand in both domestic and overseas
markets, supported by further capacity expansions by downstream
mono-wafer customers. This has translated into meaningful demand
improvement for polysilicon, which has driven a significant
increase in polysilicon ASPs recently. Current market ASPs for
mono-grade polysilicon are approximately $11~$12/kg, a significant
improvement from approximately $7.5/kg in the second quarter. We expect
polysilicon supply to remain tight as the overall demand for PV
solar continues to grow, supported by continued mono-wafer
production capacity expansion and limited additional supply of
polysilicon over the next 15 months."
"In the second quarter, we produced and sold 18,097 MT and
18,881 MT of polysilicon, respectively, exceeding our guidance. We
conducted annual maintenance for our manufacturing facility in the
second quarter. However, some technology upgrade projects, as well
as equipment modification, have been re-scheduled to August due to
the delayed delivery of some key equipment and long-lead time
maintenance parts. This will have some impact on the third quarter
production volume. As a result, we expect to produce approximately
17,500 MT to 18,000 MT of polysilicon during the third quarter.
We expect to resume to 100% utilization rate in September after the
completion of such projects. Our expected annual production volume
for 2020 remains unchanged at 73,000
MT to 75,000 MT."
"During the quarter, we continued to make strong progress
towards quality improvement and cost structure. Approximately 95%
of our polysilicon production reached mono-grade quality during the
quarter. At the same time, we continued to improve our cost
structure, with further reductions in energy and material usage per
unit of production. Despite the impact of annual maintenance during
the quarter, we achieved a historically-low cash cost of
$4.87/kg."
"We believe the solar PV market has entered a new phase of
sustained growth as grid parity has been achieved in many countries
and regions around the globe. Solar PV is one of the very few
energy resources which are clean, sustainable and cost effective,
even compared with traditional fossil fuel power generation
methods. It is playing an increasingly important role in meeting
the growing global energy demand and addressing critical
environmental issues such as climate change and sustainable
development. We will continue our commitment to provide high
quality polysilicon products to better serve the fast-growing
demand for solar PV energy."
Outlook and guidance
The Company expects to produce approximately 17,500 MT to 18,000 MT
of polysilicon and sell approximately 17,000
MT to 17,500 MT of polysilicon
to external customers during the third quarter of 2020. For the
full year of 2020, the Company expects to produce approximately
73,000 MT to 75,000 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.
Second Quarter 2020 Results
Revenues
Revenues were $133.5 million,
compared to $168.8 million in the
first quarter of 2020 and $66.0
million in the second quarter of 2019. The sequential
decrease in revenues was primarily due to lower ASP combined with
lower polysilicon sales volume.
Gross profit and margin
Gross profit was $22.7 million,
compared to $56.6 million in the
first quarter of 2020 and $8.6 million in the second quarter of 2019.
Gross margin was 17.0%, compared to 33.5% in the first quarter of
2020 and 13.0% in the second quarter of 2019. The decrease in gross
margin was primarily due to lower ASP despite the improvement in
production costs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $10.1 million, compared to $8.9 million in the first quarter of 2020 and
$7.8 million in the second quarter of
2019. SG&A expenses during the quarter included $4.0 million 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 $2.0 million, compared to $1.7 million in the first quarter of 2020 and
$1.5 million in the second quarter of
2019. Research and development expenses can vary from period to
period and reflect R&D activities that take place during the
quarter.
Income / loss from operations and operating
margin
As a result of the foregoing, income from operations was
$10.8 million, compared to
$45.8 million in the first quarter of
2020 and loss from operations of $0.4
million in the second quarter of 2019. Operating margin was
8.1%, compared to 27.1% in the first quarter of 2020.
Interest expense
Interest expense was $6.7 million,
compared to $6.3 million in the first
quarter of 2020 and $1.9 million in
the second quarter of 2019.
EBITDA (non-GAAP)
EBITDA (non-GAAP) from continuing operations was $26.8 million, compared to $63.1 million in the first quarter of 2020 and
$10.2 million in the second quarter
of 2019. EBITDA margin (non-GAAP) was 20.0%, compared to 37.4% in
the first quarter of 2020 and 15.5% in the second quarter of
2019.
Net income / loss attributable to Daqo New Energy Corp.
shareholders and earnings / loss per ADS
As a result of the aforementioned, net income attributable to
Daqo New Energy Corp. shareholders was $2.4
million in the second quarter of 2020, compared to net
income attributable to Daqo New Energy Corp. shareholders of
$33.2 million in the first quarter of
2020 and net loss attributable to Daqo New Energy Corp.
shareholders of $2.2 million in the
second quarter of 2019.
Earnings per basic ADS was $0.17
in the second quarter of 2020, compared to earnings per basic ADS
of $2.37 in the first quarter of
2020, and loss per basic ADS of $0.16
in the second quarter of 2019.
Financial Condition
As of June 30, 2020, the Company
had $115.8 million in cash and cash
equivalents and restricted cash, compared to $120.8 million as of March
31, 2020 and $79.6 million as
of June 30, 2019. As of June 30, 2020, the notes receivable balance was
$8.2 million, compared to
$4.4 million as of March 31, 2020 and $9.4
million as of June 30, 2019.
As of June 30, 2020, total borrowings
were $264.8 million, of which
$116.9 million were long-term
borrowings, compared to total borrowings of $265.6 million, including $149.0 million long-term borrowings, as of
March 31, 2020 and total borrowings
of $243.2 million, including
$151.5 million long-term borrowings,
as of June 30, 2019.
Cash Flows
For the six months ended June 30,
2020, net cash provided by operating activities was
$47.0 million, compared to
$67.8 million in the same period of
2019.
For the six months ended June 30,
2020, net cash used in investing activities was $60.4 million, compared to $144.9 million in the same period of 2019. The
net cash used in investing activities in 2020 and 2019 was
primarily related to the capital expenditures on Xinjiang Phase
3B and 4A polysilicon projects.
For the six months ended June 30,
2020, net cash provided by financing activities was
$16.2 million, compared to
$61.3 million in the same period of
2019.
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 and
diluted 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 and diluted 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, because
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 course. Adjusted net
income attributable to Daqo New Energy Corp. shareholders and
adjusted earnings per basic and diluted 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 our 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
August 18, 2020. (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
|
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/dq200818.html
A replay of the call will be available 1 hour after the end of
the conference through August 25,
2020.
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:
|
10147211
|
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 70,000 metric
tons.
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 and the full year of 2020 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; the Company's ability to lower its
production costs; and the duration of COVID-19 outbreaks in
China and many other countries and
the impact of the outbreaks and the quarantines and travel
restrictions instituted by relevant governments on economic and
market conditions, including potentially weaker global demand for
solar PV installations that could adversely affect the Company's
business and financial performance. Further information regarding
these and other risks is included in the reports or documents the
Company has filed with, or furnished to, the U.S. 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
|
Six months
ended
|
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$133,518
|
|
$168,831
|
|
$65,959
|
|
$302,349
|
|
$147,163
|
Cost of
revenues
|
|
(110,820)
|
|
(112,277)
|
|
(57,390)
|
|
(223,097)
|
|
(120,253)
|
Gross
profit
|
|
22,698
|
|
56,554
|
|
8,569
|
|
79,252
|
|
26,910
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
expenses
|
|
(10,120)
|
|
(8,892)
|
|
(7,806)
|
|
(19,012)
|
|
(15,742)
|
Research and
development expenses
|
|
(1,958)
|
|
(1,654)
|
|
(1,527)
|
|
(3,612)
|
|
(2,824)
|
Other operating income
/ (expense)
|
|
133
|
|
(215)
|
|
365
|
|
(82)
|
|
434
|
Total operating
expenses
|
|
(11,945)
|
|
(10,761)
|
|
(8,968)
|
|
(22,706)
|
|
(18,132)
|
Income / (loss) from
operations
|
|
10,753
|
|
45,793
|
|
(399)
|
|
56,546
|
|
8,778
|
Interest
expense
|
|
(6,653)
|
|
(6,287)
|
|
(1,889)
|
|
(12,940)
|
|
(3,910)
|
Interest
income
|
|
368
|
|
151
|
|
258
|
|
519
|
|
582
|
Foreign exchange
loss
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
(189)
|
Income / (loss)
before income taxes
|
|
4,468
|
|
39,657
|
|
(2,031)
|
|
44,125
|
|
5,261
|
Income tax
expense
|
|
(2,037)
|
|
(6,344)
|
|
(662)
|
|
(8,381)
|
|
(2,091)
|
Net income / (loss)
from continuing
operations
|
|
2,431
|
|
33,313
|
|
(2,693)
|
|
35,744
|
|
3,170
|
(Loss) / income from
discontinued
operations, net of tax
|
|
(55)
|
|
(86)
|
|
504
|
|
(141)
|
|
1,282
|
Net income /
(loss)
|
|
2,376
|
|
33,227
|
|
(2,189)
|
|
35,603
|
|
4,452
|
Net loss attributable
to non-controlling
interest
|
|
(7)
|
|
(3)
|
|
-
|
|
(10)
|
|
-
|
Net income / (loss)
attributable to Daqo
New Energy Corp. shareholders
|
|
$2,383
|
|
$33,230
|
|
$(2,189)
|
|
$35,613
|
|
$4,452
|
|
|
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
|
2,376
|
|
33,227
|
|
(2,189)
|
|
35,603
|
|
4,452
|
Other comprehensive
income/ (loss):
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
1,213
|
|
(9,819)
|
|
(12,271)
|
|
(8,606)
|
|
744
|
Total other
comprehensive income / (loss)
|
|
1,213
|
|
(9,819)
|
|
(12,271)
|
|
(8,606)
|
|
744
|
Comprehensive income
/ (loss)
|
|
3,589
|
|
23,408
|
|
(14,460)
|
|
26,997
|
|
5,196
|
Comprehensive loss
attributable to non-
controlling interest
|
|
(6)
|
|
(9)
|
|
-
|
|
(15)
|
|
-
|
Comprehensive income
/ (loss)
attributable to Daqo New Energy Corp.
shareholders
|
|
$ 3,595
|
|
$23,417
|
|
$(14,460)
|
|
$27,012
|
|
$5,196
|
|
|
|
|
|
|
|
|
|
|
|
Earnings /
(loss) per ADS
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
0.17
|
|
2.38
|
|
(0.20)
|
|
2.55
|
|
0.23
|
- discontinued
operations
|
|
-
|
|
(0.01)
|
|
0.04
|
|
(0.01)
|
|
0.10
|
Basic
|
|
0.17
|
|
2.37
|
|
(0.16)
|
|
2.54
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
0.16
|
|
2.28
|
|
(0.20)
|
|
2.44
|
|
0.23
|
- discontinued
operations
|
|
-
|
|
(0.01)
|
|
0.04
|
|
(0.01)
|
|
0.09
|
Diluted
|
|
0.16
|
|
2.27
|
|
(0.16)
|
|
2.43
|
|
0.32
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
14,109,241
|
|
13,991,847
|
|
13,492,010
|
|
14,042,495
|
|
13,426,612
|
Diluted
|
|
14,682,134
|
|
14,669,820
|
|
13,936,671
|
|
14,664,055
|
|
13,846,728
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$88,215
|
|
$63,168
|
|
$31,250
|
|
Restricted
cash
|
|
27,551
|
|
57,639
|
|
48,375
|
|
Accounts receivable,
net
|
|
65
|
|
213
|
|
86
|
|
Notes
receivable
|
|
8,163
|
|
4,402
|
|
9,435
|
|
Prepaid expenses and
other current assets
|
|
13,476
|
|
13,249
|
|
13,765
|
|
Advances to
suppliers
|
|
6,712
|
|
8,962
|
|
8,688
|
|
Inventories,
net
|
|
26,824
|
|
33,234
|
|
19,871
|
|
Amount due from related
parties
|
|
12
|
|
-
|
|
4,572
|
|
Current assets
associated with discontinued
operation
|
|
667
|
|
664
|
|
1,133
|
|
Total current
assets
|
|
171,685
|
|
181,531
|
|
137,175
|
|
Property, plant and
equipment, net
|
|
956,675
|
|
968,418
|
|
763,388
|
|
Prepaid land use
right
|
|
28,826
|
|
28,936
|
|
22,029
|
|
Deferred tax
assets
|
|
1,332
|
|
1,330
|
|
823
|
|
Investment in
affiliate
|
|
633
|
|
631
|
|
651
|
|
Operating lease
Right-of-use assets
|
|
153
|
|
173
|
|
158
|
|
Non-current asset
associated with discontinued
operation
|
|
181
|
|
197
|
|
55,175
|
|
TOTAL
ASSETS
|
|
1,159,485
|
|
1,181,216
|
|
979,399
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings,
including current portion of
long-term borrowings
|
|
147,839
|
|
116,602
|
|
91,760
|
|
Accounts
payable
|
|
18,833
|
|
17,716
|
|
11,106
|
|
Notes
payable
|
|
49,143
|
|
89,614
|
|
73,135
|
|
Advances from
customers-short term portion
|
|
23,500
|
|
11,640
|
|
25,654
|
|
Payables for purchases
of property, plant and
equipment
|
|
97,239
|
|
106,208
|
|
25,213
|
|
Accrued expenses and
other current liabilities
|
|
18,262
|
|
11,284
|
|
9,340
|
|
Amount due to related
parties
|
|
8,169
|
|
43,363
|
|
683
|
|
Income tax
payable
|
|
4,414
|
|
10,975
|
|
1,975
|
|
Lease liabilities -
short term portion
|
|
74
|
|
85
|
|
115
|
|
Current liabilities
associated with discontinued
operation
|
|
877
|
|
1,164
|
|
6,879
|
|
Total current
liabilities
|
|
368,350
|
|
408,651
|
|
245,860
|
|
Long-term
borrowings
|
|
116,911
|
|
149,018
|
|
151,475
|
|
Advance from customers
– long term portion
|
|
1,132
|
|
1,624
|
|
3,496
|
|
Amount due to related
parties - long term portion
|
|
16,247
|
|
-
|
|
16,022
|
|
Other long-term
liabilities
|
|
20,067
|
|
20,536
|
|
21,213
|
|
Deferred tax
liabilities
|
|
5,459
|
|
6,271
|
|
1,159
|
|
Lease liabilities –
long term portion
|
|
-
|
|
77
|
|
58
|
|
Non-current liabilities
associated with discontinued
operation
|
|
-
|
|
-
|
|
702
|
|
TOTAL
LIABILITIES
|
|
528,166
|
|
586,177
|
|
439,985
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
36
|
|
35
|
|
34
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
396,445
|
|
391,843
|
|
377,767
|
|
Accumulated
gains
|
|
236,535
|
|
234,152
|
|
175,851
|
|
Accumulated other
comprehensive loss
|
|
(28,538)
|
|
(29,750)
|
|
(12,489)
|
|
Total Daqo New Energy
Corp.'s shareholders' equity
|
|
602,729
|
|
594,531
|
|
539,414
|
|
Non-controlling
interest
|
|
28,590
|
|
508
|
|
-
|
|
Total
equity
|
|
631,319
|
|
595,039
|
|
539,414
|
|
TOTAL LIABILITIES
& EQUITY
|
|
1,159,485
|
|
1,181,216
|
|
979,399
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
For the six months
ended June 30,
|
|
|
2020
|
|
2019
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
$ 35,603
|
|
$4,452
|
|
Less: (loss) / income
from discontinued operations, net of tax
|
|
(141)
|
|
1,282
|
|
Net income from
continuing operations
|
|
35,744
|
|
3,170
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities
|
|
44,865
|
|
30,418
|
|
Changes in
operating assets and liabilities
|
|
(33,599)
|
|
32,229
|
|
Net cash provided by
operating activities-continuing operations
|
|
47,010
|
|
65,817
|
|
Net cash (used in) /
provided by operation activities-discontinued
operations
|
|
(50)
|
|
1,992
|
|
Net cash provided by
operating activities
|
|
46,960
|
|
67,809
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Net cash used in
investing activities-continuing operations
|
|
(60,195)
|
|
(146,547)
|
|
Net cash (used in) /
provided by investing activities-discontinuing
operations
|
|
(195)
|
|
1,647
|
|
Net cash used in
investing activities
|
|
(60,390)
|
|
(144,873)
|
|
|
|
|
|
|
|
Financing
activities:
Cash received from minority investors
Cash (used in) / received from other financing
activities
|
|
28,088 (11,796)
|
|
-
72,263
|
|
Net cash provided by
financing activities – continuing operations
|
|
16,292
|
|
72,263
|
|
Net cash used in
financing activities – discontinued operations
|
|
(64)
|
|
(10,971)
|
|
Net cash provided by
financing activities
|
|
16,228
|
|
61,292
|
|
|
|
|
|
|
|
Non-cash
transactions
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
(1,667)
|
|
357
|
|
Net increase /
(decrease) in cash, cash equivalents and restricted cash
|
|
1,131
|
|
(15,415)
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
|
115,294
|
|
95,120
|
|
Cash, cash
equivalents and restricted cash at the end of the period
|
|
116,425
|
|
79,705
|
|
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.
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
Cash and cash
equivalents
|
|
88,874
|
|
31,330
|
Restricted
cash
|
|
27,551
|
|
48,375
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
116,425
|
|
79,705
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
Three months
Ended
|
Six months
Ended
|
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
Net income /
(loss) from continuing operation
|
|
2,431
|
|
33,313
|
|
(2,693)
|
|
35,744
|
|
3,170
|
Income tax
expense
|
|
2,037
|
|
6,344
|
|
662
|
|
8,381
|
|
2,091
|
Interest
expense
|
|
6,653
|
|
6,287
|
|
1,889
|
|
12,940
|
|
3,910
|
Interest
income
|
|
(368)
|
|
(151)
|
|
(258)
|
|
(519)
|
|
(582)
|
Depreciation &
Amortization
|
|
16,004
|
|
17,275
|
|
10,637
|
|
33,279
|
|
21,647
|
EBITDA from continuing operation
(non-GAAP)
|
|
26,757
|
|
63,068
|
|
10,237
|
|
89,825
|
|
30,236
|
EBITDA margin
from continuing operation (non-GAAP)
|
|
20.0%
|
|
37.4%
|
|
15.5%
|
|
29.7%
|
|
20.5%
|
|
Three months
Ended
|
Six months
Ended
|
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
Net income /
(loss) attributable to Daqo New Energy Corp.
shareholders
|
|
2,383
|
|
33,230
|
|
(2,189)
|
|
35,613
|
|
4,452
|
Share-based
compensation
|
|
4,491
|
|
4,461
|
|
4,486
|
|
8,952
|
|
8,960
|
Adjusted net
income (non-GAAP) attributable to Daqo New
Energy Corp. shareholders
|
|
6,874
|
|
37,691
|
|
2,297
|
|
44,565
|
|
13,412
|
Adjusted earnings
per basic ADS (non-GAAP)
|
|
$0.49
|
|
$2.69
|
|
$0.17
|
|
$3.17
|
|
$1.00
|
Adjusted earnings
per diluted ADS (non-GAAP)
|
|
$0.47
|
|
$2.57
|
|
$0.16
|
|
$3.04
|
|
$0.97
|
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. Rene Vanguestaine
Phone: +86 178 1749 0483
E-mail: rvanguestaine@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information, please visit www.dqsolar.com
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-second-quarter-2020-results-301113759.html
SOURCE Daqo New Energy Corp.