Close menu
  • News
  • Products
  • Contact
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
    • 3 News in Focus
    • 5 Business & Money
    • 5 Science & Tech
    • 5 Lifestyle & Health
    • 0 Policy & Public Interest
    • 1 People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
    • Overview
    • Distribution by PR Newswire
    • Cision IR
    • SocialBoost
    • All Products
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
    Close submenu (News in Focus)News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    Close submenu (Business & Money)Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    Close submenu (Science & Tech)Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    Close submenu (Lifestyle & Health)Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    Close submenu (Policy & Public Interest)Policy & Public Interest
    Close submenu (People & Culture)People & Culture
    • People & Culture
    Accessibility Statement Skip Navigation
    • Resources
    • Blog
    • Journalists
    • Log In
    • Sign Up
    • Data Privacy
    • Send a Release
    Return to PR Newswire homepage
    • News
    • Products
    • Contact
    When typing in this field, a list of search results will appear and be automatically updated as you type.

    Searching for your content...

    No results found. Please change your search terms and try again.
    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • English-only
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business & Money
        • Auto & Transportation

        • All Automotive & Transportation
        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • All Business Technology
        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • All Entertain­ment & Media
        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertain­ment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • All Financial Services & Investing
        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • All General Business
        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Overseas Real Estate (non-US)
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • All Consumer Technology
        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • All Energy
        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • All Environ­ment
        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environ­ment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • All Heavy Industry & Manufacturing
        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • All Telecomm­unications
        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecomm­unications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • All Consumer Products & Retail
        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • All Entertain­ment & Media
        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertain­ment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • All Health
        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • All Sports
        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • All Travel
        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • All Policy & Public Interest
        • Advocacy Group Opinion
        • Animal Welfare
        • Congressional & Presidential Campaigns
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • U.S. State Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • All People & Culture
        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

        • In-Language News

        • Arabic
        • español
        • português
        • Česko
        • Danmark
        • Deutschland
        • España
        • France
        • Italia
        • Nederland
        • Norge
        • Polska
        • Portugal
        • Россия
        • Slovensko
        • Suomi
        • Sverige
    • Overview
    • Distribution by PR Newswire
    • Cision IR
    • Guaranteed Paid Placement
    • SocialBoost
    • All Products
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Hamburger menu
    • PR Newswire: news distribution, targeting and monitoring
    • Send a Release
      • ALL CONTACT INFO
      • Contact Us

        888-776-0942
        from 8 AM - 10 PM ET

    Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2023 Results


    News provided by

    Daqo New Energy Corp.

    Feb 28, 2024, 06:00 ET

    Share this article

    Share toX

    Share this article

    Share toX

    SHANGHAI, Feb. 28, 2024 /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 fourth quarter and fiscal year of 2023.

    Fourth Quarter 2023 Financial and Operating Highlights

    • Polysilicon production volume was 61,014 MT in Q4 2023, compared to 57,664 MT in Q3 2023
    • Polysilicon sales volume was 59,906 MT in Q4 2023, compared to 63,263 MT in Q3 2023
    • Polysilicon average total production cost(1) was $6.50/kg in Q4 2023, compared to $6.52/kg in Q3 2023
    • Polysilicon average cash cost(1) was $5.72/kg in Q4 2023, compared to $5.67/kg in Q3 2023
    • Polysilicon average selling price (ASP) was $7.97/kg in Q4 2023, compared to $7.68/kg in Q3 2023
    • Revenue was $477.1 million in Q4 2023, compared to $484.8 million in Q3 2023
    • Gross profit was $87.2 million in Q4 2023, compared to $67.8 million in Q3 2023. Gross margin was 18.3% in Q4 2023, compared to 14.0% in Q3 2023
    • Net income attributable to Daqo New Energy Corp. shareholders was $44.9 million in Q4 2023, compared to net loss attributable to Daqo New Energy Corp. shareholders of $6.3 million in Q3 2023
    • Earnings per basic American Depositary Share (ADS)(3) was $0.64 in Q4 2023, compared to loss per basic ADS of $0.09 in Q3 2023
    • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $66.0 million in Q4 2023, compared to $44.0 million in Q3 2023
    • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $0.94 in Q4 2023, compared to $0.59 in Q3 2023
    • EBITDA (non-GAAP)(2) was $128.2 million in Q4 2023, compared to $70.2 million in Q3 2023. EBITDA margin (non-GAAP)(2) was 26.9% in Q4 2023, compared to 14.5% in Q3 2023

    Three months ended

    US$ millions

    except as indicated otherwise

    December.
    31,2023

    September.
    30, 2023

    December.
    31, 2022

    Revenues

    477.1

    484.8

    864.3

    Gross profit

    87.2

    67.8

    668.9

    Gross margin

    18.3 %

    14.0 %

    77.4 %

    Income from operations

    83.3

    22.5

    623.1

    Net income/(loss) attributable to Daqo New Energy
    Corp. shareholders

    44.9

    (6.3)

    332.7

    Earnings/(loss) per basic ADS(3) ($ per ADS)

    0.64

    (0.09)

    4.26

    Adjusted net income (non-GAAP)(2) attributable to
    Daqo New Energy Corp. shareholders

    66.0

    44.0

    363.1

    Adjusted earnings per basic ADS(3) (non-GAAP)(2)
    ($ per ADS) 

    0.94

    0.59

    4.65

    EBITDA (non-GAAP)(2)

    128.2

    70.2

    648.5

    EBITDA margin (non-GAAP)(2)

    26.9 %

    14.5 %

    75.0 %

    Polysilicon sales volume (MT) 

    59,906

    63,263

    23,400

    Polysilicon average total production cost ($/kg)(1)

    6.50

    6.52

    7.69

    Polysilicon average cash cost (excl. dep'n) ($/kg)(1)

    5.72

    5.67

    6.78

    Full Year 2023 Financial and Operating Highlights

    • Polysilicon production volume was 197,831 MT in 2023, compared to 133,812 MT in 2022
    • Polysilicon sales volume was 200,002 MT in 2023, compared to 132,909 MT in 2022
    • Revenue was $2,308.5 million in 2023, compared to $4,608.4 million in 2022
    • Gross profit was $920.7 million in 2023, compared to $3,407.9 million in 2022. Gross margin was 39.9% in 2023, compared to 74.0% in 2022
    • Net income attributable to Daqo New Energy Corp. shareholders was $421.2 million in 2023, compared to $1,819.8 million in 2022. Earnings per basic ADS was $5.64 in 2023, compared to $24.00 in 2022
    • EBITDA (non-GAAP)(2) was $918.6 million in 2023, compared to $3,150.7 million in 2022. EBITDA margin (non-GAAP)(2) was 39.8% in 2023, compared to 68.4% in 2022
    • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $554.7 million in 2023, compared to $2,122.3 million in 2022
    • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $7.42 in 2023, compared to $27.97 in 2022

    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 and non-cash share-based compensation, 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, "2023 was a year of unforeseen developments and challenges in the solar industry with record installation volumes worldwide but also record-low prices by the end of the year. Thanks to the dedication and invaluable contribution of our team, we reached an annual polysilicon production volume of 197,831 MT in 2023, meeting our guidance of 196,000 to 199,000 MT and representing a 47.8% year-over-year growth rate compared to 133,812 MT produced in 2022. We sold 200,002 MT, 50.5% higher than 132,909 MT in 2022. Despite robust demand growth for solar PV products globally in 2023, the high polysilicon prices driven by capacity mismatches between upstream and downstream players and the resulting supply shortages that we had seen in 2022 were alleviated by early 2023. As a result, polysilicon ASPs declined significantly for the year to $11.48/kg from $32.54/kg in 2022. Our revenue was $2.3 billion in 2023 compared to $4.6 billion in 2022 due to much lower ASPs. The decline was partially offset by the higher sales volume. Despite the challenging market conditions, gross margin still came in strong at 39.9% for 2023. EBITDA margin for 2023 was 39.8%, with EBITDA of $918.5 million. Furthermore, the Company generated very strong operating cash flow of approximately $1.6 billion for the year and continued to maintain a healthy balance sheet with no financial debt. By the end of 2023, the Company had a cash balance of $3.0 billion and a combined cash and bank notes receivable balance of $3.2 billion.

    During the fourth quarter, continued optimization of operations and improvements in yield and throughput at our two polysilicon facilities resulted in total production volume of 61,014 MT, an increase of 3,350 MT compared to the previous quarter. Our new Inner Mongolia 5A facility contributed 45% of our total production volume for the fourth quarter. Compared to the end of last year, our production cost trended down quarter over quarter, reducing by approximately $1.2/kg from Q4 2022 to an average of $6.50/kg in Q4 2023. Q4 saw solid demand from customers for our high-quality N-type polysilicon. In total, we shipped 59,392 MT of polysilicon for the quarter, leaving our finished goods inventory at a very low level of less than one week of production volume across our two facilities. This low inventory level has allowed us to effectively hedge against downside risks during the off-season period close to the end of year. In Q4, as new capacity was released, the price disparity became more apparent between high-quality manufacturers and new entrants. Despite fierce market competition due to the addition to polysilicon supply, we continued to maintain our leadership in both cost and quality. During the month of December, our N-type product mix reached approximately 60%. Overall, we maintained profitability despite the challenging market conditions, generating $128 million in EBITDA for Q4, and maintained a strong cash flow."

    "We expect Q1 2024 total polysilicon production volume to be approximately 60,000 MT to 62,000 MT, similar to that for Q4 2023 as the Company maintains full production. We plan to begin initial production at our new Inner Mongolia 5B facility in Q2 2024, and as such we anticipate full year 2024 production volume to be approximately 280,000 MT to 300,000 MT, approximately 40% to 50% higher than in 2023. 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 will further increase N-type production in the product mix."

    "Industry polysilicon prices in Q4 declined from approximately RMB87/kg for mono-grade polysilicon in September to approximately RMB 65/kg in December primarily due to seasonally lower demand. On the demand side, in October, the ingot segment reduced utilization rates due to accumulated inventory and lower wafer prices. In November, N-type module prices dropped below RMB 1.0/W for the first time and solar cell manufacturers could hardly make a profit. On the supply side, polysilicon production volumes in China continued to increase on a month-over-month basis in Q4, and Tier 2 and Tier 3 manufacturers, including new entrants, contributed most of the growth in polysilicon supply. However, leading high-quality manufacturers produced less than anticipated, widening the price gap between high quality manufacturers and Tier-2 companies. Near the end of December, N-type and P-type polysilicon prices came in at around RMB 65-68/kg and RMB 55-62/kg, respectively. Going into the first half of 2024, we expect polysilicon prices to rebound slightly in Q1, seasonally affected by Chinese New Year, and then stabilize in Q2. The market transition to N-type products has been accelerating, as downstream producers continue to switch to N-type products, driven by the higher price premium of N-type TOPCon products over P-type PERC products. We expect this trend to continue throughout 2024, with strong demand for higher-purity N-type polysilicon in a market with tight supply."

    "Regarding the Company's $700 million share buyback program announced in November 2022, by the end of 2023, the Company had repurchased 14.55 million ADSs (equivalent to 72.75 million ordinary shares) at an average price of $33.71 per ADS for a total of approximately $491 million, representing 70.1% of the US$700 million maximum amount of the share repurchase program. The number of the Company's total ordinary shares outstanding at the end of 2023 was approximately 328.5 million after reflecting the completed share repurchases, compared with 391.0 million ordinary shares at the end of 2022. Together with the program completed in 2022, in aggregate, the Company has repurchased approximately 16.4 million ADSs for approximately $610.5 million."

    "2023 was an unprecedented year, marking a step change for renewable power growth. The global acceleration in the transition to renewable energy was primarily driven by China's booming solar market with new solar PV capacity reaching record high at 216.88GW, a 148% year-over-year growth. This surge was particularly evident in December, when China added 53GW, which is roughly a quarter of the entire year's additional capacity. Solar has become one of the most competitive forms of power generation and 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. With 2023 setting the stage for gradually phasing out P-type products, we believe that 2024 will mark the year when N-type products dominate the industry. We are optimistic that we will capture the long-term benefits of the growing global solar PV market and maintain our competitive advantage, by enhancing our higher-efficiency N-type technology and optimizing our cost structure through digital transformation. In 2023 alone, we collected more than 20 billion manufacturing process data points at each of our polysilicon production facility. We believe that we have one of the largest pools of collected and stored polysilicon production data amongst our peers in China. We have begun to apply AI to this vast amount of data to help increase the proportion of N-type in our product mix and reduce our production cost, by identifying relationships across discrete processes, and ultimately predicting the optimal inputs and parameters that would yield the best production result. We expect that as we collect more data and further leverage our AI-powered analytics to provide additional insights, we will be able to further reduce cost, achieve higher efficiency and increase productivity."

    Outlook and guidance

    The Company expects to produce approximately 60,000MT to 62,000MT of polysilicon during the first quarter of 2024. The Company expects to produce approximately 280,000MT to 300,000MT of polysilicon for the full year of 2024, 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.

    Fourth Quarter 2023 Results

    Revenues

    Revenues were $477.1 million, compared to $484.8 million in the third quarter of 2023 and $864.3 million in the fourth quarter of 2022. The decrease in revenues compared to the third quarter of 2023 was primarily due to a decrease in sales volume mitigated by an increase in ASP.

    Gross profit and margin

    Gross profit was $87.2 million, compared to $67.8 million in the third quarter of 2023 and $668.9 million in the fourth quarter of 2022. Gross margin was 18.3%, compared to 14.0% in the third quarter of 2023 and 77.4% in the fourth quarter of 2022. The increase in gross margin compared to the third quarter of 2023 was primarily due to higher ASP and lower production cost.

    Selling, general and administrative expenses

    Selling, general and administrative expenses were $39.0 million, compared to $89.7 million in the third quarter of 2023 and $44.0 million in the fourth quarter of 2022. SG&A expenses during the fourth quarter included $19.6 million in non-cash share-based compensation expense related to the Company's share incentive plans, compared to $46.3 million in the third quarter of 2023.

    Research and development expenses

    Research and development (R&D) expenses were $3.3 million, compared to $2.8 million in the third quarter of 2023 and $2.7 million in the fourth quarter of 2022. Research and development expenses can vary from period to period and reflect R&D activities that take place during the quarter. R&D activities were primarily related to quality improvements and N-type product research.

    Foreign exchange (loss)/gain

    Foreign exchange loss was $0.8 million, compared to a gain of $3.1 million in the third quarter of 2023 attributed to the 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 $83.3 million, compared to $22.5 million in the third quarter of 2023 and $623.1 million in the fourth quarter of 2022.

    Operating margin was 17.5%, compared to 4.6% in the third quarter of 2023 and 72.1% in the fourth quarter of 2022.

    Net income/(loss) attributable to Daqo New Energy Corp. shareholders and earnings/(loss) per ADS

    As a result of the abovementioned, net income attributable to Daqo New Energy Corp. shareholders was $44.9 million, compared to net loss of $6.3 million in the third quarter of 2023 and $332.7 million in the fourth quarter of 2022.

    Earnings per basic American Depository Share (ADS) was $0.64, compared to loss per basic ADS of $0.09 in the third quarter of 2023, and $4.26 in the fourth 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 $66.0 million, compared to $44.0 million in the third quarter of 2023 and $363.1 million in the fourth quarter of 2022.

    Adjusted earnings per basic American Depository Share (ADS) was $0.94 compared to $0.59 in the third quarter of 2023, and $4.65 in the fourth quarter of 2022.

    EBITDA (non-GAAP)  

    EBITDA (non-GAAP) was $128.2 million, compared to $70.2 million in the third quarter of 2023 and $648.5 million in the fourth quarter of 2022. EBITDA margin (non-GAAP) was 26.9%, compared to 14.5% in the third quarter of 2023 and 75.0% in the fourth quarter of 2022.

    Full Year 2023 Results

    Revenues

    Revenues were $2,308.5 million, compared to $4,608.4 million in 2022. The decrease was primarily due to much lower polysilicon ASPs, partially mitigated by higher sales volume.

    Gross profit and margin

    Gross profit was $920.7 million, compared to $3,407.9 million in 2022. Gross margin was 39.9%, compared to 74.0% in 2022. The decrease in gross profit was primarily due to lower ASPs.

    Selling, general and administrative expenses

    Selling, general and administrative expenses were $213.2 million, compared to $354.1 million in 2022. The decrease was primarily due to reduction in non-cash share-based compensation cost related to the Company's share incentive plan, which was $121.0 million and $299.3 million in 2023 and 2022, respectively.

    Research and development expenses

    Research and development (R&D) expenses were $10.1 million, compared to $10.0 million in 2022. Research and development expenses can vary from period to period and reflect R&D activities that took place during the period.

    Income from operations and operating margin

    As a result of the foregoing, income from operations was $783.4 million, compared to $3,040.6 million in 2022. Operating margin was 33.9%, compared to 66.0% in 2022.

    Interest income, net

    Interest income, net was $52.3 million, compared to $14.5 million in 2022. The increase in interest income was due to higher cash at bank balance.

    Income tax expense

    Income tax expense was $174.0 million, compared to $577.2 million in 2022. The decrease was primarily due to lower income before income taxes.

    Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

    Net income attributable to Daqo New Energy Corp. shareholders was $421.2 million, compared to $1,819.8 million in 2022. Earnings per basic ADS were $5.64, compared to $24.00 in 2022.

    Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $554.7 million, compared to $2,122.3 million in 2022. Adjusted earnings per basic ADS (non-GAAP) were $7.42, compared to $27.97 in 2022.

    EBITDA 

    EBITDA (non-GAAP) was $918.6 million, compared to $3,150.7 million in 2022. EBITDA margin (non-GAAP) was 39.8%, compared to 68.4% in 2022.

    Financial Condition

    As of December 31, 2023, the Company had $3,048.0 million in cash, cash equivalents and restricted cash, compared to $3,280.8 million as of September 30, 2023 and $3,520.4 million as of December 31, 2022. As of December 31, 2023, the notes receivable balance was $116.4 million, compared to $275.8 million as of September 30, 2023 and $1,131.6 million as of December 31, 2022. Notes receivable represents bank notes with maturity within six months.

    Cash Flows

    For the twelve months ended December 31, 2023, net cash provided by operating activities was $1,610.9 million, compared to $2,462.7 million in the same period of 2022. The decrease was primarily due to lower revenues and gross margin.

    For the twelve months ended December 31, 2023, net cash used in investing activities was $1,190.8 million, compared to $998.4 million in the same period of 2022. The net cash used in investing activities in 2023 was primarily related to the capital expenditures on the Company's 5A and 5B polysilicon expansion projects in Baotou City, Inner Mongolia.

    For the twelve months ended December 31, 2023, net cash used in financing activities was $795.4 million, compared to $1,472.1 million provided by financing activities in the same period of 2022. The net cash used in financing activities in 2023 was primarily related to $485.9 million in share repurchases and $303.7 million in dividend payment made by the Company's subsidiary, Xinjiang Daqo, 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 February 28, 2024 (9:00 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=ZH6URNsB

    A replay of the call will be available 1 hour after the conclusion of the conference call through March 6, 2024. 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: 3690953

    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 first quarter and the full year of 2024 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

    Year ended Dec 31



    Dec 31,
    2023


    Sep 30,
    2023


    Dec 31,
    2022


    2023


    2022












     

    Revenues


     

    $477,133


     

    $484,839


     

    $864,252


     

    $ 2,308,530


     

    $ 4,608,350

    Cost of revenues


    (389,937)


    (417,025)


    (195,368)


    (1,387,880)


    (1,200,428)

    Gross profit


    87,196


    67,814


    668,884


    920,650


    3,407,922

    Operating expenses











     Selling, general and administrative
       expenses


     

    (39,004)


     

    (89,697)


     

    (43,979)


     

    (213,241)


     

    (354,074)

     Research and development expenses


    (3,250)


    (2,758)


    (2,738)


    (10,116)


    (10,041)

     Other operating income/(expense)


    38,349


    47,112


    903


    86,137


    (3,181)

    Total operating expenses


    (3,905)


    (45,343)


    (45,814)


    (137,220)


    (367,296)

    Income from operations


    83,291


    22,471


    623,070


    783,430


    3,040,626

      Interest income, net


    13,772


    13,832


    12,030


    52,301


    14,473

      Foreign exchange (loss)/gain


    (796)


    3,143


    -


    (17,367)


    680

      Investment income


    253


    (165)


    (132)


    109


    1,110

    Income before income taxes


    96,520


    39,281


    634,968


    818,473


    3,056,889

    Income tax expense


    (26,737)


    (21,438)


    (148,675)


    (173,973)


    (577,247)

    Net income


    69,783


    17,843


    486,293


    644,500


    2,479,642

    Net income attributable to non-controlling
    interest


     

    24,837


     

    24,155


     

    153,559


     

    223,342


     

    659,841

    Net income/(loss) attributable to Daqo
      New Energy Corp. shareholders


     

    $44,946


     

    ($6,312)


     

    $332,734


     

    $421,158


     

    $1,819,801












    Earnings/(loss) per ADS


     

    0.64


     

    (0.09)


     

    4.26


     

    5.64


     

    24.00

       Basic






       Diluted


    0.64


    (0.09)


    4.71


    5.62


    23.35

     

    Weighted average ADS outstanding











    Basic


    69,862,986


    74,038,122


    78,052,481


    74,717,201

    75,873,062

    Diluted


    69,905,271


    74,152,055


    78,898,049


    74,963,535

    77,291,968

    Daqo New Energy Corp.


    Unaudited Condensed Consolidated Balance Sheets


    (US dollars in thousands)






    Dec. 31, 2023


    Sep. 30, 2023


    Dec. 31, 2022










    ASSETS:








    Current Assets:








      Cash, cash equivalents and restricted cash


    3,047,956


    3,280,816


    3,520,351


      Short-term investments


    -


    2,749


    13,927


      Notes receivable


    116,358


    275,843


    1,131,566


      Inventories


    173,271


    129,067


    169,517


      Other current assets


    239,050


    150,633


    53,802


    Total current assets


    3,576,635


    3,839,108


    4,889,163


     Property, plant and equipment, net


    3,641,024


    3,237,803


    2,605,195


      Prepaid land use right


    150,358


    147,774


    80,330


      Other non-current assets


    73,507


    70,956


    19,408


    TOTAL ASSETS


    7,441,524


    7,295,641


    7,594,096










    Current liabilities:








      Accounts payable and notes payable


    93,161


    100,466


    102,562


      Advances from customers-short term portion


    148,984


    252,262


    121,992


      Payables for purchases of property, plant and
    equipment


     

    435,344


     

    292,488


    230,440


      Other current liabilities


    173,598


    165,102


    281,548


    Total current liabilities


    851,087


    810,318


    736,542


      Advance from customers – long term portion


    113,857


    104,206


    153,176


      Other non-current liabilities


    36,681


    33,526


    99,772


    TOTAL LIABILITIES


    1,001,625


    948,050


    989,490


     

    EQUITY:








    Total Daqo New Energy Corp.'s shareholders'
      equity


     

    4,753,522


     

    4,733,218


     

    4,807,376


    Non-controlling interest


    1,686,377


    1,614,373


    1,797,230


    Total equity


    6,439,899


    6,347,591


    6,604,606


    TOTAL LIABILITIES & EQUITY


    7,441,524


    7,295,641


    7,594,096


    Daqo New Energy Corp.

    Unaudited Condensed Consolidated Statements of Cash Flows

    (US dollars in thousands)




    For the year ended December 31,




    2023


    2022


    Operating Activities:






    Net income


    $ 644,500


    $ 2,479,642


    Adjustments to reconcile net income to net cash provided by
    operating activities


     

    301,615


     

    431,965


    Changes in operating assets and liabilities


    664,753


    (448,955)


    Net cash provided by operating activities


    1,610,868


    2,462,652








    Investing activities:






    Net cash used in investing activities


    (1,190,781)


    (998,416)








    Financing activities:






    Net cash (used in)/provided by financing activities


    (795,399)


    1,472,091








    Effect of exchange rate changes


    (97,083)


    (139,942)


    Net (decrease)/increase in cash, cash equivalents and restricted cash


    (472,395)


    2,796,385


    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


    3,047,956


    3,520,351


    Daqo New Energy Corp.

    Reconciliation of non-GAAP financial measures to comparable US GAAP measures

    (US dollars in thousands)



    Three months ended

    Year ended Dec 31



    Dec 31, 2023


    Sep 30, 2023


    Dec 31, 2022


    2023


    2022

    Net income

    69,783

    17,843

    486,293

    644,500

    2,479,642

    Income tax expense


    26,737


    21,438


    148,675


    173,973


    577,247

    Interest income, net


    (13,772)


    (13,832)


    (12,030)


    (52,301)


    (14,473)

    Depreciation & Amortization


    45,455


    44,765


    25,585


    152,454


    108,317

    EBITDA (non-GAAP)


    128,203


    70,214


    648,523


    918,626


    3,150,733

    EBITDA margin (non-GAAP)


    26.9 %


    14.5 %


    75.0 %


    39.8 %


    68.4 %













    Three months ended

    Year ended Dec 31



    Dec 31, 2023


    Sep 30, 2023


    Dec 31, 2022


    2023


    2022

    Net income/(loss) attributable to Daqo
        New Energy Corp. shareholders


    44,946


    (6,312)

    332,734

    421,158

    1,819,801

    Share-based compensation


    21,008


    50,287


    30,376


    133,520


    302,495

    Adjusted net income (non-GAAP)
        attributable to Daqo New Energy
        Corp. shareholders

     

     

    65,954

     

     

    43,975

     

     

    363,110

     

     

    554,678

     

     

    2,122,296

    Adjusted earnings per basic ADS (non-
        GAAP)


     

    $0.94


     

    $0.59


     

    $4.65


     

    $7.42


     

    $27.97

    Adjusted earnings per diluted ADS
        (non-GAAP)


     

    $0.94


     

    $0.59


     

    $4.60


     

    $7.40


     

    $27.46

    SOURCE Daqo New Energy Corp.

    WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

    icon3
    440k+
    Newsrooms &
    Influencers
    icon1
    9k+
    Digital Media
    Outlets
    icon2
    270k+
    Journalists
    Opted In
    GET STARTED

    Modal title

    Also from this source

    Daqo New Energy Corp. to Hold Annual General Meeting on December 10, 2024

    Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today ...

    Daqo New Energy Announces Unaudited Third Quarter 2024 Results

    Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy," the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar...

    More Releases From This Source

    Explore

    Utilities

    Utilities

    Banking & Financial Services

    Banking & Financial Services

    Environmental Products & Services

    Environmental Products & Services

    Oil & Energy

    Oil & Energy

    News Releases in Similar Topics

    Contact PR Newswire

    • Call PR Newswire at 888-776-0942
      from 8 AM - 9 PM ET
    • Chat with an Expert
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

    Products

    • For Marketers
    • For Public Relations
    • For IR & Compliance
    • For Agency
    • For Small Business
    • All Products

    About

    • About PR Newswire
    • About Cision
    • Become a Publishing Partner
    • Become a Channel Partner
    • Careers
    • Accessibility Statement
    • Asia
    • APAC
    • APAC - Traditional Chinese
    • Brazil
    • Canada
    • Czech
    • Denmark
    • Finland
    • France
    • Germany
    • India
    • Indonesia
    • Israel
    • Korea
    • Italy
    • Japan
    • Mexico
    • Middle East
    • Middle East - Arabic
    • Netherlands
    • Norway
    • Poland
    • Portugal
    • Russia
    • Slovakia
    • Spain
    • Sweden
    • United Kingdom

    My Services

    • All New Releases
    • Online Member Center
    • ProfNet

    Do not sell or share my personal information:

    • Submit via Privacy@cision.com 
    • Call Privacy toll-free: 877-297-8921

    Contact PR Newswire

    Products

    About

    My Services
    • All News Releases
    • Online Member Center
    • ProfNet
    Call PR Newswire at
    888-776-0942
    • Terms of Use
    • Privacy Policy
    • Information Security Policy
    • Site Map
    • RSS
    • Cookie Settings
    Copyright © 2025 Cision US Inc.