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Daqo New Energy (DQ) shares soared 6.4% in the last trading session to close at $25.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.3% gain over the past four weeks.Optimism over strong customer demand for polysilicon seemed to have driven the stock higher. The company is benefiting from strong demand for its high-quality N-type polysilicon despite headwinds from lower polysilicon selling prices. Its energy efficiency effo ...

Financial Data and Key Metrics Changes - In 2023, the company achieved a polysilicon production volume of 197,831 metric tons, a 47.8% year-over-year increase from 133,812 metric tons in 2022 [7] - Revenue for 2023 was $2.3 billion, down from $4.6 billion in 2022, primarily due to lower average selling prices (ASPs) [8][20] - Gross margin for 2023 was 39.9%, compared to 74% in 2022, reflecting the impact of lower ASPs [20][22] - The company generated approximately $1.6 billion in operating cash flow for the year and maintained a cash balance of $3 billion by year-end [8][22] Business Line Data and Key Metrics Changes - The company sold 200,002 metric tons of polysilicon in 2023, a 50% increase from 132,909 metric tons in 2022 [7] - In Q4 2023, the total production volume was 61,014 metric tons, an increase of 3,350 metric tons compared to the previous quarter [8] - ASP for Q4 was $7.90 per kilogram, up 3.8% from Q3 2023 [16] Market Data and Key Metrics Changes - The global solar market saw record installation volumes in 2023, with China's new solar PV capacity reaching 216.88 gigawatts, a 148% year-over-year growth [13] - N-type poly prices are expected to rebound slightly in Q1 2024, with forecasts of RMB70 to RMB73 per kilogram for N-type and around RMB65 for P-type [27][30] - The company anticipates that the market transition to N-type products will accelerate, driven by higher price premiums [14] Company Strategy and Development Direction - The company plans to begin initial production at its new Inner Mongolia 5B facility in Q2 2024, with full-year 2024 production volume expected to be approximately 280,000 to 300,000 metric tons [10] - The company aims to enhance its competitive advantage by optimizing its cost structure through digital transformation and increasing the proportion of N-type in its product mix [15][14] Management Comments on Operating Environment and Future Outlook - Management noted that 2023 was a year of unforeseen developments in the solar industry, with record low prices at the end of the year despite robust demand growth [7] - The company expects a slight rebound in poly prices in Q1 2024, followed by stabilization in Q2 [12][27] - Management expressed confidence in the company's operations and cash flow, while remaining cautious about market dynamics [34] Other Important Information - The company maintained a healthy balance sheet with no financial debt and a combined cash and bank notes receivable balance of $3.2 billion [8][22] - SG&A expenses for 2023 were $213 million, down from $354 million in 2022, primarily due to reduced non-cash share-based compensation costs [21] Q&A Session Summary Question: What is the outlook for poly prices in Q1 and Q2? - Management expects N-type prices to range between RMB70 to RMB73 per kilogram in Q1, with potential for N-type to rebound to RMB80 in the second half of 2024 [27][30] Question: What are the dynamics affecting price expansion? - Current market demand is relatively low, with module production utilization at 60% to 70%, leading to improved pricing from December levels [29][30] Question: Is there a plan for a new buyback program? - The board is considering a share repurchase plan contingent upon the A-share dividend plan, with discussions ongoing [34][40] Question: What is the CapEx plan for 2024? - The CapEx budget for 2024 is estimated to be around RMB8 billion to RMB9 billion, primarily for ongoing projects in Inner Mongolia [38] Question: How will power tariff hikes affect production costs? - The company does not expect significant impacts on production costs due to favorable electricity agreements in Xinjiang and Inner Mongolia [44]

Daqo New Energy (DQ) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $4.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -23.81%. A quarter ago, it was expected that this solar panel parts maker would post earnings of $1.70 per share when it actually produced a loss of $0.09, delivering a surprise of -105.29%.Over the last four quarter ...

February 28, 2024 Q4 and Fiscal Year 2023 Results Presentation 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 quart ...

Production and Sales - Polysilicon production volume reached 61,014 MT in Q4 2023, up from 57,664 MT in Q3 2023[2] - Full year 2023 polysilicon production volume was 197,831 MT, a 47.8% increase from 133,812 MT in 2022[4] - The company expects Q1 2024 polysilicon production volume to be approximately 60,000 MT to 62,000 MT[12] - The anticipated full year 2024 production volume is projected to be between 280,000 MT and 300,000 MT, representing a 40% to 50% increase from 2023[12] Revenue and Profitability - Revenue for Q4 2023 was $477.1 million, a decrease from $484.8 million in Q3 2023[3] - Revenue for the full year 2023 was $2,308.5 million, down from $4,608.4 million in 2022 due to lower average selling prices[4] - Full year 2023 revenues were $2,308.5 million, a decrease from $4,608.4 million in 2022, primarily due to lower polysilicon average selling prices (ASPs)[20] - Gross profit increased to $87.2 million in Q4 2023, compared to $67.8 million in Q3 2023, with a gross margin of 18.3%[3] - Gross profit for 2023 was $920.7 million, down from $3,407.9 million in 2022, with a gross margin of 39.9% compared to 74.0% in 2022[22] - EBITDA (non-GAAP) for 2023 was $918.6 million, a decrease from $3,150.7 million in 2022, with an EBITDA margin of 39.8% compared to 68.4% in 2022[28] Net Income - Net income attributable to shareholders was $44.9 million in Q4 2023, a significant recovery from a net loss of $6.3 million in Q3 2023[3] - Net income attributable to Daqo New Energy Corp. shareholders was $44.9 million in Q4 2023, compared to a net loss of $6.3 million in Q3 2023 and a loss of $332.7 million in Q4 2022[17] - Adjusted net income (non-GAAP) for 2023 was $554.7 million, down from $2,122.3 million in 2022, with adjusted earnings per basic ADS at $7.42 compared to $27.97 in 2022[27] - Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $65,954 thousand for the three months ended December 31, 2023, compared to $43,975 thousand in the previous quarter[55] Cash Flow and Financial Position - The company generated approximately $1.6 billion in operating cash flow for 2023, maintaining a cash balance of $3.0 billion[7] - Net cash provided by operating activities for 2023 was $1,610.9 million, a decrease from $2,462.7 million in 2022, primarily due to lower revenues and gross margin[31] - Cash, cash equivalents, and restricted cash at the end of the period were $3,047,956 thousand, down from $3,520,351 thousand at the beginning of the period[51] - As of December 31, 2023, the company had $3,048.0 million in cash and cash equivalents, down from $3,520.4 million a year earlier[29] Expenses - Selling, general and administrative (SG&A) expenses were $39.0 million in Q4 2023, down from $89.7 million in Q3 2023 and $44.0 million in Q4 2022[15] - Research and development (R&D) expenses increased to $3.3 million in Q4 2023 from $2.8 million in Q3 2023 and $2.7 million in Q4 2022, focusing on quality improvements and N-type product research[16] Operational Performance - Income from operations was $83.3 million in Q4 2023, significantly up from $22.5 million in Q3 2023 but down from $623.1 million in Q4 2022, with an operating margin of 17.5%[17] - Total current liabilities increased to $851,087 thousand as of December 31, 2023, compared to $810,318 thousand in the previous quarter[46] - Total assets decreased to $7,441,524 thousand as of December 31, 2023, from $7,594,096 thousand a year earlier[48] - The company’s total liabilities stood at $1,001,625 thousand as of December 31, 2023, compared to $948,050 thousand in the previous quarter[46] Shareholder Returns - The company repurchased 14.55 million ADSs for approximately $491 million as part of its $700 million share buyback program[10]

SHANGHAI, Jan. 30, 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 that its subsidiary Xinjiang Daqo New Energy ("Xinjiang Daqo") has provided an estimate of its net profit for the fiscal year 2023 ended December 31, 2023 to the Shanghai Stock Exchange. Xinjiang Daqo estimates that under PRC GAAP, its net profit attributable to Xinjiang Daqo's shareholders in ...

Core Viewpoint - Daqo New Energy Corp. has made significant progress in its $700 million share repurchase program, demonstrating confidence in its undervalued shares and maintaining a positive long-term growth outlook despite industry challenges [1][2]. Share Repurchase Program - The company repurchased 14.55 million American Depositary Shares (ADSs), equivalent to 72.75 million ordinary shares, at an average price of $33.71 per ADS, totaling approximately $491 million, which is nearly 70.1% of the allocated repurchase amount [1]. - By the end of 2023, the total ordinary shares outstanding were around 328.8 million, down from 391 million at the end of 2022 due to share repurchases [1]. - In Q4 2023, the company repurchased 6.45 million ADSs at an average cost of $25.11 per ADS, amounting to about $162 million [2]. Financial Position and Market Outlook - The repurchased ADSs represented 18.6% of the total shares outstanding at the end of 2022, reflecting the company's strong balance sheet and liquidity position [2]. - The management is focused on capital preservation for future growth and is actively monitoring market trends to navigate industry cycles [2]. Stock Performance - Daqo's shares have decreased by 48.9% over the past year, contrasting with a 17.3% increase in the industry [3].

Core Viewpoint - Daqo New Energy Corp. has successfully executed a significant share repurchase program, reflecting confidence in its valuation and long-term growth potential in the solar PV industry [1][2]. Share Repurchase Program - The company initiated a US$700 million share repurchase program from November 7, 2022, to December 31, 2023 [1]. - By the end of 2023, Daqo repurchased 14.55 million ADSs, equivalent to 72.75 million ordinary shares, at an average price of $33.71 per ADS, totaling approximately $491 million, which is about 70.1% of the program's maximum amount [1]. - The total number of ordinary shares outstanding decreased from approximately 391.0 million at the end of 2022 to about 328.8 million by the end of 2023 [1]. Management Commentary - The Chairman and CEO highlighted that the repurchased shares represent 18.6% of the total shares outstanding at the end of 2022, indicating a belief that the shares are undervalued [2]. - The company remains optimistic about the long-term growth outlook of the solar industry, despite recent challenges [2]. - In Q4 2023, Daqo repurchased 6.45 million ADSs for approximately $162 million at an average price of $25.11 per ADS [2]. - The management emphasizes the importance of preserving capital for future growth while ensuring sustainable returns for investors [2]. Company Overview - Daqo New Energy Corp. is a leading manufacturer of high-purity polysilicon for the global solar PV industry, founded in 2007 [3]. - The company has a total polysilicon nameplate capacity of 205,000 metric tons and is recognized as one of the lowest-cost producers in the sector [3].

Justin Paget 2023 has been a devastating year for solar stocks. If not for the recent Santa Claus rally, most solar stocks would've been down more than 40%. The new momentum is caused by the expected rate cuts of the Federal Reserve in 2024. Solar investments are costly and even more when you have to pay 5% interest on a loan. Therefore, solar investments have become less interesting in both America and Europe. Further, changes in government incentive programs made decision-making even worse with consumers ...