SHANGHAI, April 15, 2025 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for first quarter of 2025 ended March 31, 2025 before U.S. markets open on Tuesday, April 29, 2025. https://event.choruscall.com/mediaframe/webcast.html?webcastid=TJ7Upakg The Company has scheduled a conference call to discuss the results at 8:00 A ...

Daqo New Energy (DQ) shares ended the last trading session 6.1% higher at $14.56. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 25.8% loss over the past four weeks.DQ's shares surged on a broad-based rally, triggered by President Trump’s announcement of a 90-day suspension of reciprocal tariffs for most countries.This solar panel parts maker is expected to post quarterly loss of $1.02 per share in its upcoming re ...

Company Overview - Daqo New Energy Corp. is a holding company for one of the largest polysilicon manufacturers globally, Xinjiang Daqo, which is listed as a subsidiary on the Shanghai Stock Exchange [1]. Investment Perspective - The company is viewed favorably by value investors who focus on acquiring stocks at a significant margin of safety below their intrinsic value [1]. - There is a contrarian investment view suggesting that risk and return can be inversely correlated, leading to substantial bets when the risk/reward ratio is highly asymmetrical [1].

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $195.4 million, down from $476.3 million in Q4 2023, primarily due to lower average selling prices (ASP) and lower sales volumes [26][31] - The gross loss for Q4 2024 was $65.3 million, with a negative gross margin of 33%, compared to a gross profit of $87.2 million and a gross margin of 18.3% in Q4 2023 [26][27] - For the full year 2024, net loss attributable to shareholders was $345 million, compared to net income of $429.5 million in 2023 [36] Business Line Data and Key Metrics Changes - Polysilicon production volume reached 205,068 metric tons in 2024, a 3.7% increase from 197,831 metric tons in 2023 [11] - The ASP for polysilicon decreased significantly from $11.48 per kilogram in 2023 to $5.66 per kilogram in 2024 [12] - The company sold 181,362 metric tons of polysilicon in 2024, maintaining a reasonable inventory level despite market challenges [11] Market Data and Key Metrics Changes - The polysilicon market faced excess capacity, leading to price declines below cash costs, with ASPs falling below production costs starting in Q2 2024 [12][19] - New solar PV capacity in China reached a record high of 68 gigawatts in December 2024, exceeding expectations [21] - The total production volume in China descended to approximately 100,000 metric tons per month in December, the lowest level of the year [20] Company Strategy and Development Direction - The company aims to enhance its competitive edge by focusing on higher efficiency N-type technology and optimizing its cost structure through digital transformation and AI adoption [23] - Daqo New Energy plans to maintain a low utilization rate in 2025 until a market turning point is identified [17] - The company is committed to navigating the current market downturn while positioning itself for future growth as a leader in the industry [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging market environment with excess capacity and price declines, but expressed optimism about long-term growth in the solar PV market [10][22] - The company expects total polysilicon production volume in Q1 2025 to be approximately 25,000 to 28,000 metric tons, with a full-year production guidance of 110,000 to 140,000 metric tons [17][18] - Discussions on industry self-regulation measures are ongoing, with expectations for improved balance between supply and demand as the market adjusts [21] Other Important Information - The company recorded a non-cash long-lived asset impairment charge of $175.6 million in Q4 2024 related to older polysilicon production lines [13] - Daqo New Energy maintains a strong balance sheet with a cash balance of $1 billion and quick assets of $2.2 billion as of the end of 2024 [14][38] Q&A Session Summary Question: What was the cash spend in Q4 last year? - Management indicated that approximately $80 million was related to operations, $40 million to capital expenditures, and the remainder to changes in balance sheet items [58] Question: What are the thoughts on pricing outlook in the next two quarters? - Management expects poly prices to increase in the short run, with potential price upside in Q2 2025 due to supply adjustments and new regulations [46][52] Question: What are the management's thoughts on potential policy interventions in the industry? - Management noted that the National Energy Administration is considering policies to stem losses in the industry, which may include capping production and retiring inefficient capacity [60][62] Question: What is the current inventory level of the company? - The current sellable inventory is less than 20,000 metric tons per month, showing a decline of close to 10,000 metric tons compared to the end of the last quarter [130]

Daqo New Energy (DQ) came out with a quarterly loss of $2.71 per share versus the Zacks Consensus Estimate of a loss of $0.61. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -344.26%. A quarter ago, it was expected that this solar panel parts maker would post a loss of $0.80 per share when it actually produced a loss of $0.92, delivering a surprise of -15%.Over the last four quarters, the co ...

Core Viewpoint - Daqo New Energy Corp. reported significant financial losses in Q4 2024 and for the full year, primarily due to declining polysilicon prices and excess capacity in the solar PV industry, despite achieving production targets and maintaining a strong cash position [1][10][11]. Financial Highlights for Q4 2024 - Revenues decreased to $195.4 million from $198.5 million in Q3 2024 and $476.3 million in Q4 2023 [3][15]. - Gross loss was $65.3 million with a gross margin of -33.4%, compared to a gross loss of $60.6 million and a margin of -30.5% in Q3 2024 [3][16]. - Net loss attributable to shareholders was $180.2 million, a significant increase from $60.7 million in Q3 2024 [3][23]. - Loss per basic ADS was $2.71, compared to $0.92 in Q3 2024 [3][23]. - EBITDA was -$236.5 million with an EBITDA margin of -121.1%, worsening from -34.3 million and -17.3% in Q3 2024 [3][26]. Full Year 2024 Financial Highlights - Total revenues for 2024 were $1,029.1 million, down from $2,307.7 million in 2023 [6][27]. - Gross loss for the year was $212.9 million, with a gross margin of -20.7%, compared to a gross profit of $920.7 million and a margin of 39.9% in 2023 [6][28]. - Net loss attributable to shareholders was $345.2 million, compared to a net income of $429.5 million in 2023 [6][34]. - Adjusted net loss (non-GAAP) was $272.8 million, compared to an adjusted net income of $563.1 million in 2023 [11][35]. - EBITDA for the year was -$338.8 million, with an EBITDA margin of -32.9%, compared to $918.6 million and 39.8% in 2023 [11][36]. Production and Cost Metrics - Polysilicon production volume for Q4 2024 was 34,236 MT, down from 43,592 MT in Q3 2024 [5]. - Polysilicon sales volume was 42,191 MT in Q4 2024, slightly up from 42,101 MT in Q3 2024 [5]. - Average total production cost increased to $6.81/kg in Q4 2024 from $6.61/kg in Q3 2024, while average cash cost decreased to $5.04/kg from $5.34/kg [5][10]. - Average selling price (ASP) for polysilicon was $4.62/kg in Q4 2024, down from $4.69/kg in Q3 2024 [5]. Management Insights - The company faced a challenging market with excess capacity leading to price declines, prompting a reduction in polysilicon production to manage cash burn [10]. - The N-type product mix increased significantly from approximately 40% in 2023 to 70% in 2024 [10]. - Despite the losses, the company maintained a strong balance sheet with $2.2 billion in cash and equivalents at the end of Q4 2024 [10][37]. Industry Outlook - The polysilicon market remains sluggish, with expectations of production volume between 25,000 MT to 28,000 MT in Q1 2025 and 110,000 MT to 140,000 MT for the full year [12][13]. - The solar PV industry is expected to recover as supply adjusts to more rational levels, with strong demand prospects indicated by a record high of 68 GW of new solar PV capacity in China in December 2024 [12].

SHANGHAI, Feb. 12, 2025 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for fourth quarter and fiscal year of 2024 ended December 31, 2024 before U.S. markets open on Thursday, February 27, 2025. The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on February 27, 2025 (9:00 PM ...

Core Viewpoint - Daqo New Energy Corp. announced a significant estimated net loss for its subsidiary Xinjiang Daqo New Energy for the fiscal year 2024, marking a substantial decline from the previous year's profit [1][2]. Financial Performance - Xinjiang Daqo estimates a net loss attributable to its shareholders in the range of RMB2.6 billion to RMB3.1 billion for FY2024, compared to a net profit of RMB5.8 billion in FY2023, indicating a potential decline of approximately 145% to 153% year-over-year [2]. - The estimated losses are attributed to provisions for inventory impairment and fixed asset impairment [2]. Company Structure and Operations - Daqo New Energy holds approximately 72.4% of Xinjiang Daqo's equity interest, with the majority of the company's revenue and net income derived from Xinjiang Daqo [3]. - The company's consolidated financial results are reported in U.S. dollars in accordance with U.S. GAAP, while the estimated net loss for Xinjiang Daqo is prepared in RMB under PRC GAAP [3]. Production Capacity - Daqo New Energy is a leading manufacturer of high-purity polysilicon for the global solar PV industry, with a total polysilicon nameplate capacity of 305,000 metric tons, positioning itself as one of the world's lowest-cost producers [5].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Company and Industry Summary - The analysis is intended solely for informational purposes and should not be considered as professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [4]. - The article highlights that the views expressed may not reflect those of the platform as a whole, suggesting a diversity of opinions among analysts [4].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $198.5 million, down from $219.9 million in Q2 2024 and $484.8 million in Q3 2023, primarily due to a decrease in average selling price (ASP) and sales volume [17] - Gross loss was $60.6 million, an improvement from a gross loss of $159.2 million in Q2 2024, but a decline from a gross profit of $67.8 million in Q3 2023. Gross margin improved to negative 30.5% from negative 72% in Q2 2024 [18] - Net loss attributable to shareholders was $60.7 million, compared to a loss of $120 million in Q2 2024 and $6.3 million in Q3 2023. Loss per basic ADS was $0.92, improved from $1.81 in Q2 2024 [22] - Adjusted net loss was $39.4 million, down from $98.8 million in Q2 2024, and adjusted loss per basic ADS was $0.59 compared to $1.50 in Q2 2024 [23] Business Line Data and Key Metrics Changes - Total production volume for polysilicon facilities was 43,592 metric tons, with a production utilization rate adjusted to 50% due to weak market demand [9] - The N-type product mix reached 75%, with Phase 5B achieving 70% N-type, aiming for 100% N-type by the end of next year [9] - Cash cost per kilogram decreased to $5.34 from $5.39 in Q2 2024, while unit production cost increased by 7% to $6.61 per kilogram due to reduced production levels [9] Market Data and Key Metrics Changes - Polysilicon supply in China decreased by 15% and 6% month-over-month in July and August 2024, respectively, with total production volume falling below 130,000 metric tons in August, the lowest year-to-date [11] - Polysilicon prices stabilized after reaching their lowest levels, rebounding to approximately RMB38 to RMB43 per kilogram in August and September [12] - New solar PV installations in China reached 160.88 gigawatts in the first nine months of 2024, growing 24.8% year-over-year [14] Company Strategy and Development Direction - The company aims to enhance its competitive advantage through higher-efficiency N-type technology and optimizing cost structures via digital transformation and AI adoption [15] - The management believes the current market downturn will lead to a healthier market in the long run, as poor profitability will drive inefficient players out of the market [12] Management Comments on Operating Environment and Future Outlook - The management noted that the solar industry in China is facing challenges due to oversupply, with market selling prices below production costs for most players [7] - There is optimism about potential government policies aimed at reducing production based on energy intensity, which could stabilize the market [31][34] - The management expects that the fourth quarter will see strong new solar installations historically, but current demand is relatively weak [62] Other Important Information - The company maintains a strong liquidity position with a cash balance of $53 million and short-term investments of $245 million, totaling quick assets of $2.4 billion [8] - The company anticipates full-year 2024 production volume to be in the range of 200,000 to 210,000 metric tons [10] Q&A Session Summary Question: Government policy on capacity reduction based on energy intensity - Management discussed ongoing industry conversations regarding potential production reductions to promote healthier development [31][32] Question: Timing of government policy impact on pricing - Management indicated uncertainty about timing but suggested that policies could take one to two months to formulate [36] Question: Impairment embedded in COGS - CFO clarified that inventory impairment was approximately $80 million, with two-thirds related to finished goods [55] Question: Average production cost rebound - CFO confirmed that the increase in production cost was due to lower utilization rates, with idle facility costs contributing to the rise [57] Question: Future pricing outlook - Management expressed cautious optimism about potential price rebounds but noted the difficulty in forecasting due to supply and demand dynamics [62]