Q4 and Fiscal Year 2022 Results Presentation February 28, 2023 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 Capacity - Polysilicon production volume reached 33,702 MT in Q4 2022, up from 33,401 MT in Q3 2022[2] - The company expects to produce approximately 31,000 MT to 32,000 MT of polysilicon in Q1 2023 and 190,000 MT to 195,000 MT for the full year 2023[9] - The company plans to complete construction of its Phase 5A 100,000 MT polysilicon capacity expansion project by June 2023[8] - The company has a total polysilicon nameplate capacity of 105,000 metric tons, positioning it as one of the world's lowest cost producers[32] Financial Performance - Revenue for Q4 2022 was $864.3 million, a decrease from $1,219.7 million in Q3 2022[3] - Full year 2022 revenue was $4,608.3 million, a 175% increase from $1,678.8 million in 2021[4] - Revenues for 2022 were $4,608.3 million, a significant increase from $1,678.8 million in 2021, driven by higher polysilicon ASPs and sales volume[17] - Revenues for the year ended December 31, 2022, were $4,608,349, a significant increase from $1,678,793 in 2021, representing a growth of 174%[36] Profitability - Gross profit in Q4 2022 was $668.9 million, with a gross margin of 77.4%, down from 80.2% in Q3 2022[3] - Gross profit reached $3,407.9 million with a gross margin of 74.0%, up from 65.4% in 2021, attributed to increased sales volume and ASPs[18] - Net income attributable to shareholders was $372.9 million in Q4 2022, compared to $323.4 million in Q3 2022[3] - Net income for the year ended December 31, 2022, reached $2,519,777, compared to $864,847 in 2021, marking an increase of 191%[42] - The adjusted net income attributable to Daqo New Energy Corp. shareholders for the year ended December 31, 2022, was $2,162,453, compared to $759,001 in 2021, indicating a growth of 185%[45] Earnings and Margins - Adjusted net income (non-GAAP) for Q4 2022 was $403.3 million, down from $590.4 million in Q3 2022[3] - Adjusted net income (non-GAAP) was $2,162.5 million, with adjusted earnings per basic ADS of $28.50, compared to $10.28 in 2021[21] - EBITDA (non-GAAP) for Q4 2022 was $648.5 million, with an EBITDA margin of 75.0%[3] - EBITDA for the year ended December 31, 2022, was $3,150,732, up from $1,132,796 in 2021, representing an increase of 178%[44] Cash Flow and Assets - Cash and cash equivalents as of December 31, 2022, totaled $3,520.4 million, an increase from $724.0 million at the end of 2021[24] - Net cash provided by operating activities was $2,466.9 million, significantly higher than $639.0 million in the same period of 2021[25] - The company reported a net cash provided by operating activities of $2,466,927 for the year ended December 31, 2022, compared to $638,989 in 2021, indicating a significant increase of 286%[42] - The company’s total assets as of December 31, 2022, were $7,592,982, compared to $3,343,651 at the end of 2021, showing a growth of 127%[38] Shareholder Returns - Net income attributable to shareholders was $1,860.0 million, compared to $748.9 million in 2021, resulting in earnings per basic ADS of $24.51, up from $10.14[21] - Basic earnings per ADS for the year ended December 31, 2022, were $24.51, compared to $10.14 in 2021, reflecting an increase of 142%[36] - The total equity of Daqo New Energy Corp. increased to $6,644,744 as of December 31, 2022, from $2,663,830 in 2021, marking a growth of 149%[39] Future Outlook - The company plans to discuss its future outlook and operational strategies in a conference call scheduled for February 28, 2023[30]

Financial Data and Key Metrics Changes - In Q3 2022, revenue reached $1.22 billion, with a gross profit of $979 million and a net income attributable to shareholders of $323.4 million [5][11] - Adjusted net income attributable to shareholders was $590 million, with an adjusted earnings per basic ADS of $7.81 [14] - Operating cash flow for the first nine months of 2022 was $1.7 billion, and the cash position combined with bank note receivables reached $4.6 billion at the end of Q3 [6][15] Business Line Data and Key Metrics Changes - Polysilicon production volume was 333,401 metric tons, with sales volume of 33,126 metric tons in Q3 2022, reflecting an 11.8% decline in sales volume compared to Q2 2022 [6][11] - The average selling price (ASP) of polysilicon increased by 10% compared to the previous quarter, contributing to improved gross margin, which reached 80% [7][12] - SG&A expenses were $280 million, primarily due to non-cash share-based compensation costs related to the company's incentive plan [13] Market Data and Key Metrics Changes - Demand for solar PV products increased significantly, particularly in China, Europe, Southeast Asia, and Brazil, driven by rising global energy prices [7] - China installed 52.6 gigawatts of solar PV projects in the first three quarters of 2022, a 106% increase compared to the same period last year [9] - Current polysilicon ASPs remain high at approximately $36 to $38 per kg, with expectations for module prices to support polysilicon ASPs [9][20] Company Strategy and Development Direction - The company aims to maintain its position as a leading low-cost and high-quality polysilicon provider, benefiting from the long-term trend of renewable energy displacing fossil fuels [10] - The company plans to produce approximately 30,000 to 32,000 metric tons of polysilicon in Q4 2022 and 130,000 to 132,000 metric tons for the full year [10] - The company is exploring dual listing in Hong Kong to address potential delisting risks and has engaged with the Hong Kong Stock Exchange [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong demand for polysilicon, with expectations that polysilicon will remain a bottleneck in the value chain due to slower expansion compared to downstream sectors [21][24] - The company anticipates that N-type technology will gain significant market share, positioning Daqo favorably due to its capability to produce ultra-high purity polysilicon [24][41] - Management noted that the COVID situation in Xinjiang has posed challenges but has not significantly impacted production [47] Other Important Information - The company completed a share repurchase program, spending $119.9 million to repurchase approximately 1.88 million ADRs [8] - The company expects to recognize approximately $7.3 million of non-cash share-based compensation expenses monthly from October 2022 through September 2025 [13] Q&A Session Summary Question: Outlook for polysilicon pricing with new capacity coming online - Management indicated that polysilicon ASP is currently high and expected to remain stable through Q4, with strong demand supporting prices [20][21] Question: Share-based compensation details - Management clarified that the share-based compensation plan is for at least three years and is separate from the share buyback program [25][26] Question: Construction progress in Mongolia - Management reported that construction is progressing smoothly, with over 50% completion and expectations for pilot production by the end of Q1 2023 [32][33] Question: Q4 production guidance - Management explained that the slight decrease in Q4 production guidance is due to maintenance schedules being pushed back [36] Question: N-type technology and market share - Management noted that while N-type market share is currently small, it is expected to grow rapidly, with Daqo well-positioned to benefit [41][42] Question: COVID impact on production and supply - Management acknowledged that COVID-related logistics challenges have affected deliveries but emphasized that operations are running normally [47]

Daqo New Energy Corp. (NYSE:DQ) Q2 2022 Earnings Conference Call August 3, 2022 8:00 AM ET Company Representatives Longgen Zhang - Chief Executive Officer Ming Yang - Chief Financial Officer Kevin He - Investor Relations Conference Call Participants Philip Shen - ROTH Capital Partners Gary Zhou - Credit Suisse Chao Ji - Goldman Sachs Alan Lau - Jefferies Rajiv Chaudhri - Sunsara Capital Operator Good day and welcome to the Daqo Second Quarter 2022 Results Conference Call. All participants will be in a liste ...

Daqo New Energy Corp. (NYSE:DQ) Q1 2022 Results Conference Call April 21, 2022 8:00 AM ET Company Participants Kevin He - Head of Investor Relations Longgen Zhang - Chief Executive Officer & Director Ming Yang - Chief Financial Officer Conference Call Participants Justin Clare - ROTH Capital Partners Gary Zhou - Credit Suisse Chao Ji - Goldman Sachs Alan Lau - Jefferies Tony Fei - Bank of China International Colin Yang - Daiwa Securities Operator Good day, and welcome to the Daqo New Energy First Quarter 20 ...

Daqo New Energy Corp. (NYSE:DQ) Q4 2021 Results Conference Call February 28, 2022 8:00 AM ET Company Participants Kevin He - Head of Investor Relations Longgen Zhang - Chief Executive Officer & Director Ming Yang - Chief Financial Officer Conference Call Participants Philip Shen - Roth Capital Partners Gary Zhou - Credit Suisse Alan Lau - Jefferies Colin Yang - Daiwa Securities Chao Ji - Goldman Sachs Operator Good day, and welcome to the Daqo New Energy Fourth Quarter and Fiscal Year 2021 Results Conferenc ...