UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of October 2023
Commission File Number: 001-34602
DAQO NEW ENERGY CORP.
Unit 29D, Huadu Mansion, 838 Zhangyang Road,
Shanghai, 200122
The People’s Republic of China
(+86-21) 5075-2918
(Address of principal
executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7): ¨
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
DAQO NEW ENERGY CORP. |
|
|
|
By: |
/s/ Xiang Xu |
|
Name: |
Xiang Xu |
|
Title: |
Chairman of the Board of Directors and Chief Executive Officer |
Date: October 30, 2023 |
|
Exhibit 99.1
Daqo New Energy Announces Unaudited Third Quarter
2023 Results
Shanghai, China—October 30, 2023—Daqo New Energy Corp.
(NYSE: DQ) ("Daqo New Energy," the "Company" or “we”), a leading manufacturer of high-purity polysilicon
for the global solar PV industry, today announced its unaudited financial results for the third quarter of 2023.
Third Quarter 2023 Financial and Operating Highlights
| • | Polysilicon production volume was 57,664 MT in Q3 2023, compared to 45,306
MT in Q2 2023 |
| • | Polysilicon sales volume was 63,263 MT in Q3 2023, compared to 51,550 MT
in Q2 2023 |
| • | Polysilicon average total production cost(1) was $6.52/kg
in Q3 2023, compared to $6.92/kg in Q2 2023 |
| • | Polysilicon average cash cost(1) was $5.67/kg in Q3 2023,
compared to $6.05/kg in Q2 2023 |
| • | Polysilicon average selling price (ASP) was $7.68/kg in Q3 2023, compared
to $12.33/kg in Q2 2023 |
| • | Revenue was $484.8 million in Q3 2023, compared to $636.7 million in Q2 2023 |
| • | Gross profit was $67.8 million in Q3 2023, compared to $258.9 million in
Q2 2023. Gross margin was 14.0% in Q3 2023, compared to 40.7% in Q2 2023 |
| • | Net (loss)/income attributable to Daqo New Energy Corp. shareholders was
($6.3 million) in Q3 2023, compared to $103.7 million in Q2 2023 |
| • | (Loss)/earnings per basic American Depositary Share (ADS)(3) was
($0.09) in Q3 2023, compared to $1.35 in Q2 2023 |
| • | Adjusted net income (non-GAAP)(2) attributable to Daqo New
Energy Corp. shareholders was $44.0 million in Q3 2023, compared to $134.5 million in Q2 2023 |
| • | Adjusted earnings per basic ADS(3) (non-GAAP)(2) was
$0.59 in Q3 2023, compared to $1.75 in Q2 2023 |
| • | EBITDA (non-GAAP)(2) was $70.2 million in Q3 2023, compared
to $230.0 million in Q2 2023. EBITDA margin (non-GAAP)(2) was 14.5% in Q3 2023, compared to 36.1% in Q2 2023 |
| |
Three months ended | |
US$ millions except as indicated otherwise | |
September.
30, 2023 | | |
June.
30, 2023 | | |
September.
30, 2022 | |
Revenues | |
| 484.8 | | |
| 636.7 | | |
| 1,219.7 | |
Gross profit | |
| 67.8 | | |
| 258.9 | | |
| 978.6 | |
Gross margin | |
| 14.0 | % | |
| 40.7 | % | |
| 80.2 | % |
Income from operations | |
| 22.5 | | |
| 213.9 | | |
| 693.0 | |
Net (loss)/income attributable to Daqo New Energy Corp. shareholders | |
| (6.3 | ) | |
| 103.7 | | |
| 323.4 | |
(Loss)/earnings per basic ADS(3) ($ per ADS) | |
| (0.09 | ) | |
| 1.35 | | |
| 4.28 | |
Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders | |
| 44.0 | | |
| 134.5 | | |
| 590.4 | |
Adjusted earnings per basic ADS(3) (non-GAAP)(2) ($ per ADS) | |
| 0.59 | | |
| 1.75 | | |
| 7.81 | |
EBITDA (non-GAAP)(2) | |
| 70.2 | | |
| 230.0 | | |
| 720.0 | |
EBITDA margin (non-GAAP)(2) | |
| 14.5 | % | |
| 36.1 | % | |
| 59.0 | % |
Polysilicon sales volume (MT) | |
| 63,263 | | |
| 51,550 | | |
| 33,126 | |
Polysilicon average total production cost ($/kg)(1) | |
| 6.52 | | |
| 6.92 | | |
| 6.82 | |
Polysilicon average cash cost (excl. dep’n) ($/kg)(1) | |
| 5.67 | | |
| 6.05 | | |
| 6.06 | |
Notes:
| (1) | Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable
costs relating to production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable
costs relating to production of polysilicon excluding depreciation cost and non-cash share-based compensation cost, divided by the production
volume in the period indicated. |
| (2) | Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted
earnings per basic 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. |
| (3) | ADS means American Depositary Share. One (1) ADS represents five (5) ordinary shares. |
Management Remarks
Mr. Xiang Xu, Chairman and CEO of the Company,
commented, “During the third quarter, continued optimization of operations at our two polysilicon facilities resulted in a total
production volume of 57,664 MT, an increase of 12,358 MT or 27% compared to the previous quarter. Our Inner Mongolia 5A facility, which
is now in full production, contributed approximately 40% of our total production volume. Meanwhile, our production cost further decreased
by 5.8% from Q2 to $6.52/kg, primarily due to improvements in manufacturing efficiency, as well as a reduction in the cost of raw materials,
particularly metallurgical-grade silicon. Compared to our Q1 average production cost of $7.55/kg, cost has declined by more than $1.00/kg.
Based on the Company’s most recent production data, we expect our Q4 cost to continue to trend downwards from the Q3 levels. We
shipped 62,967 MT of polysilicon in Q3, an increase of 9,465 MT over our Q2 shipments, and significantly higher than our quarterly production
volume. This has resulted in a significant decrease in our polysilicon product inventory across our two facilities, now at a level of
less than one week of production volume. For the third quarter, the Company generated $70 million in EBITDA. Net cash provided by operating
activities for the first nine months of this year totaled $1.5 billion, with more than $711 million in the third quarter. The Company
continues to maintain a very strong balance sheet with no financial debt. At the end of the third quarter, the Company had a cash balance
of $3.3 billion and a combined cash and bank note receivable balance of $3.6 billion.”
“Our total annual polysilicon nameplate
capacity has reached 205,000 MT across our two facilities. For Q4, we expect total polysilicon production volume to be approximately 59,000
MT to 62,000 MT, a continued increase over Q3 levels. Full year production is expected to be approximately 196,000 MT to 199,000 MT, representing
an increase of 46% to 49% compared to 2022. With more than a decade of experience in polysilicon production, as well as a fully digitalized
and integrated production system that optimizes operational efficiency, we are confident that we can strengthen our position as one of
the dominant polysilicon manufacturers in the industry.”
“At the end of the second quarter, after
polysilicon prices reached bottom, customers began reordering and taking delivery of products, significantly reducing industry inventory
levels. Polysilicon pricing recovered gradually over the third quarter. In July, as module makers intensified competition, module prices
fell from ~RMB 1.5/W in June to ~RMB 1.3/W in July. Meanwhile, the high demand in the module sector coupled with lower utilization
rate for polysilicon due to power rationing and system maintenance drove a marginal recovery in polysilicon prices. According to industry
statistics, mono-grade polysilicon prices rebounded from the lowest level of less than RMB 60/kg in June to RMB 63-68/kg by end-July,
and an average of RMB 87/kg by the end of September. Furthermore, as the current price range is unlikely to be profitable for new entrants
given their cost structure, we have seen delays in their production plans. Going into the fourth quarter, production volumes in the polysilicon
sector are likely to increase marginally as some new capacities come online. During the third quarter, we saw an acceleration in the transition
from P-type to N-type cell technology with strong growth in N-type product demand volume and the N-type products’ ASP premium expanded
to RMB 10-12/kg in Q3. Going forward, we expect this transition to further accelerate as N-type products expand market share, leading
to continued demand growth.”
“Regarding the Company’s $700 million
share buyback program announced in November 2022, by the end of this September, the Company had already repurchased 8.10 million
ADSs for approximately $328.8 million, with an average cost of approximately $40.58 per ADS. Combined with the program completed in 2022,
in aggregate, the Company has already repurchased approximately 10.0 million ADSs for approximately $448.8 million. While basic weighted
average ADS outstanding for the third quarter were 74 million shares, total outstanding shares at the end of the third quarter were approximately
71.8 million shares, after fully reflecting our recently completed share repurchases.”
“With the urgent need to address climate
change, we are still at the early stage of the energy transition from fossil fuel to renewable energy [for human’s energy needs
on Earth]. As one of the most competitive forms of power generation, the continuous cost reduction in solar PV products and the associated
reduction in solar energy generation costs are expected to create substantial additional green energy demand, which we believe is likely
to exceed most analysts’ expectations. Solar PV is generally expected to eventually become one of the most important energies to
power the world. In addition, as solar PV technology keeps evolving, we believe that the increasing needs for very high purity polysilicon,
such as our N-type polysilicon, will help differentiate us from most of our competitors. While many of our competitors will likely struggle
in the current market environment, Daqo New Energy has one of the best balance sheets in the industry with no financial debt, and we are
confident that we will navigate the near-term market volatility successfully. We are optimistic that as the solar end market continues
to grow, and as our customers continue to transition to higher-efficiency N-type technology, we will benefit from this trend. Daqo will
continue to strive to maintain solid growth and capture the long-term benefits of the growing global solar PV market.”
Outlook and guidance
The Company expects to produce approximately 59,000MT to 62,000MT of
polysilicon during the fourth quarter of 2023. The Company expects to produce approximately 196,000MT to 199,000MT of polysilicon for
the full year of 2023, 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.
Third Quarter 2023 Results
Revenues
Revenues were $484.8 million, compared to $636.7 million in the second
quarter of 2023 and $1,219.7 million in the third quarter of 2022. The decrease in revenues compared to the second quarter of 2023 was
primarily due to a decrease in ASP mitigated by an increase in sales volume.
Gross profit and margin
Gross profit was $67.8 million, compared to $258.9 million in the second
quarter of 2023 and $978.6 million in the third quarter of 2022. Gross margin was 14.0%, compared to 40.7% in the second quarter of 2023
and 80.2% in the third quarter of 2022. The decrease in gross margin compared to the second quarter of 2023 was primarily due to lower
ASP, which was partially mitigated by lower production cost.
Selling, general and administrative expenses
Selling, general and administrative expenses were $89.7 million, compared
to $43.3 million in the second quarter of 2023 and $280.2 million in the third quarter of 2022. The increase in SG&A expenses during
the third quarter compared to the second quarter of 2023 was primarily related to the resignation expenses plus recognition of the remaining
share-based compensation expenses related to the Company’s recent management change. SG&A expenses during the third quarter
included $46.3 million in non-cash share-based compensation expense related to the Company’s share incentive plans, compared to
$27.5 million in the second quarter of 2023.
Research and development expenses
Research and development (R&D) expenses were $2.8 million, compared
to $2.2 million in the second quarter of 2023 and $2.5 million in the third quarter of 2022. Research and development expenses can vary
from period to period and reflect R&D activities that take place during the quarter.
Foreign exchange gain
Foreign exchange gain was $3.1 million, compared to a notable loss
of $19.7 million in the second quarter of 2023 attributed to the significant volatility and fluctuation in the USD/CNY exchange rate during
the quarter.
Income from operations and operating margin
As a result of the abovementioned, income from operations was $22.5
million, compared to $213.9 million in the second quarter of 2023 and $693.0 million in the third quarter of 2022.
Operating margin was 4.6%, compared to 33.6% in the second quarter
of 2023 and 56.8% in the third quarter of 2022.
Net (loss)/income attributable to Daqo New Energy Corp. shareholders
and earnings per ADS
As a result of the abovementioned, net loss attributable to Daqo New
Energy Corp. shareholders was $6.3 million, compared to net income of $103.7 million in the second quarter of 2023 and $323.4 million
in the third quarter of 2022.
Loss per basic American Depository Share (ADS) was $0.09, compared
to earnings per basic ADS of $1.35 in the second quarter of 2023, and $4.28 in the third quarter of 2022.
Adjusted income (non-GAAP) attributable to Daqo New Energy Corp.
shareholders and adjusted earnings per ADS(non-GAAP)
As a result of the aforementioned, adjusted net income (non-GAAP) attributable
to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $44.0 million, compared to $134.5 million
in the second quarter of 2023 and $590.4 million in the third quarter of 2022.
Adjusted earnings per basic American Depository Share (ADS) was $0.59
compared to $1.75 in the second quarter of 2023, and $7.81 in the third quarter of 2022.
EBITDA(non-GAAP)
EBITDA (non-GAAP) was $70.2 million, compared to $230.0 million in
the second quarter of 2023 and $720.0 million in the third quarter of 2022. EBITDA margin (non-GAAP) was 14.5%, compared to 36.1% in the
second quarter of 2023 and 59.0% in the third quarter of 2022.
Financial Condition
As of September 30, 2023, the Company had $3,280.8 million in
cash, cash equivalents and restricted cash, compared to $3,169.7 million as of June 30, 2023 and $3,051.1 million as of September 30,
2022. As of September 30, 2023, the notes receivables balance was $275.8 million, compared to $798.5 million as of June 30,
2023 and $1,571.7 million as of September 30, 2022. Notes receivables represent bank notes with maturity within six months.
Cash Flows
For the nine months ended September 30, 2023, net cash provided
by operating activities was $1,497.4 million, compared to $1,697.1 million in the same period of 2022.
For the nine months ended September 30, 2023, net cash used in
investing activities was $954.3 million, compared to net cash used in investing activities of $605.4 million in the same period of 2022.
The net cash used in investing activities in the three quarters of 2023 was primarily related to the capital expenditures on the Company’s
polysilicon project in Baotou City, Inner Mongolia.
For the nine months ended September 30, 2023, net cash used in
financing activities was $602.0 million, compared to net cash provided by financing activities of $1,477.9 million in the same period
of 2022. The net cash used in financing activities in the first three quarters of 2023 was primarily related to $321.8 million in share
repurchases and $303.7 million in dividend payment made by the Company’s Xinjiang Daqo subsidiary to its minority shareholders.
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
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 U.S. Eastern Time on October 30, 2023 (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 toll: +852-301-84992
Please dial in 10 minutes before the call is scheduled
to begin and ask to join the Daqo New Energy Corp. call.
Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=s8JS6cPN
A replay of the call will be available 1 hour after the conclusion
of the conference call through November 6, 2023. The dial in details for the conference call replay are as follows:
U.S. toll free: +1-877-344-7529
International toll: +1-412-317-0088
Canada toll free: 855-669-9658
Replay access code: 6641127
To access the replay through 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.
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 2007,
the Company manufactures and sells high-purity polysilicon to photovoltaic product manufactures, who further process the polysilicon into
ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 205,000 metric
tons and is one of the world's lowest cost producers of high-purity polysilicon.
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,” “guidance”
and similar statements. Among other things, the outlook for the fourth quarter and the full year of 2023 and quotations from management
in these announcements, 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, all of which are difficult or impossible
to predict accurately and many of which are beyond the Company’s control. 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 changes in political and regulatory environment. 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
(US dollars in thousands, except ADS and per ADS
data)
| |
Three months ended | | |
Nine months ended | |
| |
Sep 30, 2023 | | |
Jun 30, 2023 | | |
Sep 30, 2022 | | |
Sep 30, 2023 | | |
Sep 30, 2022 | |
Revenues | |
$ | 484,839 | | |
$ | 636,724 | | |
$ | 1,219,689 | | |
$ | 1,831,397 | | |
$ | 3,744,098 | |
Cost of revenues | |
| (417,025 | ) | |
| (377,816 | ) | |
| (241,073 | ) | |
| (997,943 | ) | |
| (1,005,060 | ) |
Gross profit | |
| 67,814 | | |
| 258,908 | | |
| 978,616 | | |
| 833,454 | | |
| 2,739,038 | |
Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative expenses | |
| (89,697 | ) | |
| (43,257 | ) | |
| (280,182 | ) | |
| (174,238 | ) | |
| (310,095 | ) |
Research and development expenses | |
| (2,758 | ) | |
| (2,169 | ) | |
| (2,513 | ) | |
| (6,866 | ) | |
| (7,303 | ) |
Other operating income/(expense) | |
| 47,112 | | |
| 385 | | |
| (2,879 | ) | |
| 47,789 | | |
| (4,084 | ) |
Total operating expenses | |
| (45,343 | ) | |
| (45,041 | ) | |
| (285,574 | ) | |
| (133,315 | ) | |
| (321,482 | ) |
Income from operations | |
| 22,471 | | |
| 213,867 | | |
| 693,042 | | |
| 700,139 | | |
| 2,417,556 | |
Interest income/(expense), net | |
| 13,832 | | |
| 12,751 | | |
| 7,589 | | |
| 38,529 | | |
| 2,443 | |
Foreign exchange loss | |
| 3,143 | | |
| (19,714 | ) | |
| 680 | | |
| (16,571 | ) | |
| 680 | |
Investment income | |
| (165 | ) | |
| 8 | | |
| (287 | ) | |
| (143 | ) | |
| 1,242 | |
Income before income taxes | |
| 39,281 | | |
| 206,912 | | |
| 701,024 | | |
| 721,954 | | |
| 2,421,921 | |
Income tax expense | |
| (21,438 | ) | |
| (44,730 | ) | |
| (155,204 | ) | |
| (147,236 | ) | |
| (428,572 | ) |
Net income | |
| 17,843 | | |
| 162,182 | | |
| 545,820 | | |
| 574,718 | | |
| 1,993,349 | |
Net income attributable to non-controlling interest | |
| 24,155 | | |
| 58,459 | | |
| 222,411 | | |
| 198,505 | | |
| 506,282 | |
Net (loss)/income attributable to Daqo New Energy Corp. shareholders | |
| (6,312 | ) | |
| 103,723 | | |
| 323,409 | | |
| 376,213 | | |
| 1,487,067 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(Loss)/Earnings per ADS | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
| (0.09 | ) | |
| 1.35 | | |
| 4.28 | | |
| 4.93 | | |
| 19.79 | |
Diluted | |
| (0.09 | ) | |
| 1.34 | | |
| 4.18 | | |
| 4.89 | | |
| 19.41 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average ADS outstanding | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 74,038,122 | | |
| 76,762,451 | | |
| 75,588,043 | | |
| 76,351,635 | | |
| 75,140,603 | |
Diluted | |
| 74,152,055 | | |
| 77,031,850 | | |
| 76,656,286 | | |
| 76,665,986 | | |
| 76,040,846 | |
Daqo New Energy Corp.
Unaudited Condensed Consolidated Balance Sheets
(US dollars in thousands)
| |
Sep. 30,
2023 | | |
Jun. 30,
2023 | | |
Sep. 30,
2022 | |
ASSETS: | |
| | | |
| | | |
| | |
Current Assets: | |
| | | |
| | | |
| | |
Cash, cash equivalents and restricted cash | |
| 3,280,816 | | |
| 3,169,724 | | |
| 3,051,119 | |
Short-term investments | |
| 2,749 | | |
| 2,757 | | |
| 31,733 | |
Notes receivable | |
| 275,843 | | |
| 798,463 | | |
| 1,571,654 | |
Inventories | |
| 129,067 | | |
| 159,494 | | |
| 73,265 | |
Other current assets | |
| 150,633 | | |
| 137,288 | | |
| 12,789 | |
Total current assets | |
| 3,839,108 | | |
| 4,267,726 | | |
| 4,740,560 | |
Property, plant and equipment, net | |
| 3,237,803 | | |
| 2,920,163 | | |
| 2,040,221 | |
Prepaid land use right | |
| 147,774 | | |
| 94,606 | | |
| 77,554 | |
Other non-current assets | |
| 70,956 | | |
| 42,532 | | |
| 47,888 | |
TOTAL ASSETS | |
| 7,295,641 | | |
| 7,325,027 | | |
| 6,906,223 | |
| |
| | | |
| | | |
| | |
Current liabilities: | |
| | | |
| | | |
| | |
Short-term borrowings | |
| - | | |
| - | | |
| - | |
Accounts payable and notes payable | |
| 100,466 | | |
| 104,617 | | |
| 107,724 | |
Advances from customers-short term portion | |
| 252,262 | | |
| 199,396 | | |
| 420,067 | |
Payables for purchases of property, plant and equipment | |
| 292,488 | | |
| 256,278 | | |
| 94,956 | |
Other current liabilities | |
| 165,102 | | |
| 152,956 | | |
| 287,030 | |
Total current liabilities | |
| 810,318 | | |
| 713,247 | | |
| 909,777 | |
Advance from customers – long term portion | |
| 104,206 | | |
| 128,842 | | |
| 73,196 | |
Other non-current liabilities | |
| 33,526 | | |
| 31,722 | | |
| 51,331 | |
TOTAL LIABILITIES | |
| 948,050 | | |
| 873,811 | | |
| 1,034,304 | |
EQUITY: | |
| | | |
| | | |
| | |
Total Daqo New Energy Corp.’s shareholders’ equity | |
| 4,733,218 | | |
| 4,866,541 | | |
| 4,285,877 | |
Non-controlling interest | |
| 1,614,373 | | |
| 1,584,675 | | |
| 1,586,042 | |
Total equity | |
| 6,347,591 | | |
| 6,451,216 | | |
| 5,871,919 | |
TOTAL LIABILITIES & EQUITY | |
| 7,295,641 | | |
| 7,325,027 | | |
| 6,906,223 | |
Daqo New Energy Corp.
Unaudited Condensed Consolidated Statements
of Cash Flows
(US dollars in thousands)
| |
For the nine
months ended September 30, | |
| |
2023 | | |
2022 | |
Operating Activities: | |
| | | |
| | |
Net income | |
$ | 574,718 | | |
$ | 1,993,349 | |
Adjustments to reconcile net income to net cash provided by operating activities | |
| 235,283 | | |
| 370,242 | |
Changes in operating assets and liabilities | |
| 687,435 | | |
| (666,514 | ) |
Net cash provided by operating activities | |
| 1,497,436 | | |
| 1,697,077 | |
| |
| | | |
| | |
Investing activities: | |
| | | |
| | |
Net cash used in investing activities | |
| (954,290 | ) | |
| (605,362 | ) |
| |
| | | |
| | |
Financing activities: | |
| | | |
| | |
Net cash (used in)/provided by financing activities | |
| (602,006 | ) | |
| 1,477,866 | |
| |
| | | |
| | |
Effect of exchange rate changes | |
| (180,675 | ) | |
| (242,428 | ) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | |
| (239,535 | ) | |
| 2,327,153 | |
Cash, cash equivalents and restricted cash at the beginning of the period | |
| 3,520,351 | | |
| 723,966 | |
Cash, cash equivalents and restricted cash at the end of the period | |
| 3,280,816 | | |
| 3,051,119 | |
Daqo New Energy Corp.
Reconciliation of non-GAAP financial measures
to comparable US GAAP measures
(US dollars in thousands)
| |
Three months ended | | |
Nine months ended | |
| |
Sep 30, 2023 | | |
Jun 30, 2023 | | |
Sep 30, 2022 | | |
Sep 30, 2023 | | |
Sep 30, 2022 | |
Net income | |
| 17,843 | | |
| 162,182 | | |
| 545,820 | | |
| 574,718 | | |
| 1,993,349 | |
Income tax expense | |
| 21,438 | | |
| 44,730 | | |
| 155,204 | | |
| 147,236 | | |
| 428,572 | |
Interest (income) expense, net | |
| (13,832 | ) | |
| (12,751 | ) | |
| (7,589 | ) | |
| (38,529 | ) | |
| (2,443 | ) |
Depreciation & Amortization | |
| 44,765 | | |
| 35,835 | | |
| 26,608 | | |
| 106,999 | | |
| 82,732 | |
EBITDA (non-GAAP) | |
| 70,214 | | |
| 229,996 | | |
| 720,043 | | |
| 790,424 | | |
| 2,502,210 | |
EBITDA margin (non-GAAP) | |
| 14.5 | % | |
| 36.1 | % | |
| 59.0 | % | |
| 43.2 | % | |
| 66.8 | % |
| |
Three months ended | | |
Nine months ended | |
| |
Sep 30, 2023 | | |
Jun 30, 2023 | | |
Sep 30, 2022 | | |
Sep 30, 2023 | | |
Sep 30, 2022 | |
Net (loss)/income attributable to Daqo New Energy Corp. shareholders | |
| (6,312 | ) | |
| 103,723 | | |
| 323,409 | | |
| 376,213 | | |
| 1,487,067 | |
Share-based compensation | |
| 50,287 | | |
| 30,824 | | |
| 266,962 | | |
| 112,696 | | |
| 270,346 | |
Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders | |
| 43,975 | | |
| 134,547 | | |
| 590,371 | | |
| 488,909 | | |
| 1,757,413 | |
Adjusted earnings per basic ADS (non-GAAP) | |
$ | 0.59 | | |
$ | 1.75 | | |
$ | 7.81 | | |
$ | 6.40 | | |
$ | 23.39 | |
Adjusted earnings per diluted ADS (non-GAAP) | |
$ | 0.59 | | |
$ | 1.75 | | |
$ | 7.70 | | |
$ | 6.38 | | |
$ | 23.11 | |
For additional information, please contact:
Daqo New Energy Corp.
Investor Relations
Email: ir@daqo.com
Christensen
In China
Mr. Rene Vanguestaine
Phone: +86 178-1749-0483
Email: rene.vanguestaine@christensencomms.com
In the U.S.
Ms. Linda Bergkamp
Phone: +1 480-614-3004
Email: lbergkamp@christensencomms.com
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