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 ...

Daqo New Energy Corp. (NYSE:DQ) Q3 2023 Earnings Conference Call October 30, 2023 8:00 AM ET Company Participants Xiang Xu - Chairman and Chief Executive Officer Ming Yang - Chief Financial Officer Conference Call Participants Philip Shen - ROTH MKM Alan Lau - Jefferies Gordon Johnson - GLJ Research Frank Fan - Nomura Operator Good morning, and welcome to Daqo Energy Third Quarter 2023 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event ...

October 30, 2023 Q3 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 fourth quarter and the full ...

[Financial & Operating Highlights](index=1&type=section&id=Third%20Quarter%202023%20Financial%20and%20Operating%20Highlights) In Q3 2023, Daqo New Energy reported increased polysilicon production and sales volumes, but a sharp 37.7% quarter-over-quarter decline in ASP led to lower revenue of $484.8 million and a net loss of $6.3 million, compressing gross margin to 14.0% Q3 2023 Key Metrics vs. Q2 2023 | Metric | Q3 2023 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Polysilicon Production Volume (MT) | 57,664 | 45,306 | +27.3% | | Polysilicon Sales Volume (MT) | 63,263 | 51,550 | +22.7% | | Average Total Production Cost ($/kg) | $6.52 | $6.92 | -5.8% | | Average Selling Price (ASP) ($/kg) | $7.68 | $12.33 | -37.7% | | Revenue (US$ millions) | $484.8 | $636.7 | -23.9% | | Gross Profit (US$ millions) | $67.8 | $258.9 | -73.8% | | Gross Margin | 14.0% | 40.7% | -26.7pp | | Net (Loss)/Income (US$ millions) | ($6.3) | $103.7 | - | | Adjusted Net Income (non-GAAP) (US$ millions) | $44.0 | $134.5 | -67.3% | Financial Summary (US$ millions) | Metric | Q3 2023 | Q2 2023 | Q3 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% | | Net (loss)/income attributable to shareholders | (6.3) | 103.7 | 323.4 | | Adjusted net income (non-GAAP) | 44.0 | 134.5 | 590.4 | | EBITDA (non-GAAP) | 70.2 | 230.0 | 720.0 | [Management Discussion and Analysis](index=3&type=section&id=Management%20Remarks) Management highlighted record production volume and reduced costs, driven by the new Inner Mongolia facility, while maintaining a strong debt-free balance sheet and actively returning capital to shareholders [Operational Performance and Cost Reduction](index=3&type=section&id=Operational%20Performance%20and%20Cost%20Reduction) Production volume rose 27% QoQ to 57,664 MT, largely due to the Inner Mongolia 5A facility, while production cost fell 5.8% QoQ to $6.52/kg, benefiting from improved efficiency and lower raw material costs - Q3 production volume reached **57,664 MT**, a **27% increase** from Q2, with the new Inner Mongolia facility contributing approximately **40%** of the total[6](index=6&type=chunk) - Average production cost decreased by **5.8%** from Q2 to **$6.52/kg** and is expected to continue trending downwards in Q4[6](index=6&type=chunk) - The company maintains a strong balance sheet with no financial debt, a cash balance of **$3.3 billion**, and a combined cash and bank note receivable balance of **$3.6 billion** at the end of Q3[6](index=6&type=chunk) [Market Environment and Pricing Trends](index=3&type=section&id=Market%20Environment%20and%20Pricing%20Trends) After bottoming out in Q2, the polysilicon market saw a gradual price recovery in Q3, with mono-grade prices rebounding and an accelerated transition to N-type cell technology offering a significant price premium - Polysilicon prices recovered in Q3, with mono-grade prices rebounding from a low of less than **RMB 60/kg** in June to an average of **RMB 87/kg** by the end of September[6](index=6&type=chunk) - The market is experiencing an accelerated transition to N-type cell technology, with the ASP premium for N-type products expanding to **RMB 10-12/kg** in Q3[6](index=6&type=chunk) - The company believes that as solar end markets grow and customers shift to higher-efficiency N-type technology, it will benefit from this trend and strengthen its competitive position[8](index=8&type=chunk) [Capital Return and Shareholder Value](index=4&type=section&id=Capital%20Return%20and%20Shareholder%20Value) Under its $700 million share buyback program, the company had repurchased 8.10 million ADSs for approximately $328.8 million by the end of September 2023, at an average cost of $40.58 per ADS - By the end of September 2023, the company had repurchased **8.10 million ADSs** for approximately **$328.8 million** as part of its **$700 million** share buyback program[8](index=8&type=chunk) - The average repurchase cost was approximately **$40.58 per ADS**, and total outstanding shares were reduced to approximately **71.8 million**[8](index=8&type=chunk) [Future Outlook and Guidance](index=4&type=section&id=Outlook%20and%20guidance) For Q4 2023, Daqo New Energy expects to produce between 59,000 MT and 62,000 MT of polysilicon, with full-year 2023 production guidance set at 196,000 MT to 199,000 MT, representing a substantial 46% to 49% increase compared to 2022 Production Guidance | Period | Production Volume (MT) | | :--- | :--- | | Q4 2023 (est.) | 59,000 - 62,000 | | Full Year 2023 (est.) | 196,000 - 199,000 | [Detailed Financial Results (Q3 2023)](index=5&type=section&id=Third%20Quarter%202023%20Results) Q3 2023 financial results reflect a challenging pricing environment, with revenue decreasing to $484.8 million and gross margin falling to 14.0%, leading to a net loss of $6.3 million despite a robust cash position [Income Statement Analysis](index=5&type=section&id=Income%20Statement%20Analysis) Q3 revenue was $484.8 million, down from $636.7 million in Q2 2023, primarily due to lower ASP, which also caused gross margin to contract to 14.0%, while increased SG&A expenses led to a net loss of $6.3 million - Q3 revenue was **$484.8 million**, down from **$636.7 million** in Q2 2023, primarily due to a decrease in ASP mitigated by an increase in sales volume[11](index=11&type=chunk) - Gross margin fell to **14.0%** in Q3 from **40.7%** in Q2, as the impact of lower ASPs was only partially mitigated by lower production costs[12](index=12&type=chunk) - SG&A expenses increased to **$89.7 million** in Q3 from **$43.3 million** in Q2, primarily due to resignation expenses and accelerated recognition of share-based compensation related to a management change[13](index=13&type=chunk) - The company recorded a net loss attributable to shareholders of **$6.3 million**, or **($0.09)** per basic ADS, compared to a net income of **$103.7 million**, or **$1.35** per basic ADS, in Q2 2023[16](index=16&type=chunk) [Balance Sheet and Financial Condition](index=6&type=section&id=Financial%20Condition) As of September 30, 2023, the company maintained a strong financial position with cash, cash equivalents, and restricted cash increasing to $3.28 billion, while notes receivables decreased significantly to $275.8 million Key Balance Sheet Items (US$ millions) | Account | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Total current assets | 3,839.1 | 4,267.7 | 4,740.6 | | Property, plant and equipment, net | 3,237.8 | 2,920.2 | 2,040.2 | | **TOTAL ASSETS** | **7,295.6** | **7,325.0** | **6,906.2** | | **LIABILITIES & EQUITY** | | | | | Total current liabilities | 810.3 | 713.2 | 909.8 | | **TOTAL LIABILITIES** | **948.1** | **873.8** | **1,034.3** | | **Total equity** | **6,347.6** | **6,451.2** | **5,871.9** | | **TOTAL LIABILITIES & EQUITY** | **7,295.6** | **7,325.0** | **6,906.2** | [Cash Flow Analysis](index=6&type=section&id=Cash%20Flows) For the first nine months of 2023, net cash provided by operating activities was $1.5 billion, while cash used in investing activities was $954.3 million, primarily for capital expenditures, and cash used in financing activities was $602.0 million, mainly for share repurchases and dividends - For the nine months ended Sep 30, 2023, net cash provided by operating activities was **$1,497.4 million**[21](index=21&type=chunk) - Net cash used in investing activities for the first nine months of 2023 was **$954.3 million**, primarily for the capital expenditures on the Company's polysilicon project in Baotou City, Inner Mongolia[21](index=21&type=chunk) - Net cash used in financing activities for the first nine months of 2023 was **$602.0 million**, mainly due to **$321.8 million** in share repurchases and **$303.7 million** in dividend payments by the Xinjiang Daqo subsidiary[22](index=22&type=chunk) [Unaudited Consolidated Financial Statements](index=9&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section provides the detailed unaudited consolidated financial statements for the period ending September 30, 2023, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows, offering a comprehensive view of the company's financial performance and position [Statement of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Operations) The statement details revenues of $484.8 million and a gross profit of $67.8 million for Q3 2023, resulting in a net loss attributable to Daqo New Energy Corp. shareholders of $6.3 million after accounting for expenses and non-controlling interests Unaudited Condensed Consolidated Statement of Operations (US$ thousands) | | Three months ended Sep 30, 2023 | Three months ended Jun 30, 2023 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Revenues | 484,839 | 636,724 | 1,831,397 | | Gross profit | 67,814 | 258,908 | 833,454 | | Income from operations | 22,471 | 213,867 | 700,139 | | Net income | 17,843 | 162,182 | 574,718 | | Net (loss)/income attributable to Daqo New Energy Corp. shareholders | (6,312) | 103,723 | 376,213 | | (Loss)/Earnings per basic ADS | (0.09) | 1.35 | 4.93 | [Balance Sheet](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets were $7.30 billion, total liabilities stood at $948.1 million, and total equity was $6.35 billion, reflecting a strong liquidity position with $3.28 billion in cash and no short-term borrowings Unaudited Condensed Consolidated Balance Sheets (US$ thousands) | | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | 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 | | **TOTAL ASSETS** | **7,295,641** | **7,325,027** | **6,906,223** | | **LIABILITIES & EQUITY** | | | | | Total current liabilities | 810,318 | 713,247 | 909,777 | | **TOTAL LIABILITIES** | **948,050** | **873,811** | **1,034,304** | | **Total equity** | **6,347,591** | **6,451,216** | **5,871,919** | | **TOTAL LIABILITIES & EQUITY** | **7,295,641** | **7,325,027** | **6,906,223** | [Statement of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, the company generated $1.50 billion in cash from operating activities, while using $954.3 million in investing activities and $602.0 million in financing activities, ending the period with $3.28 billion in cash Unaudited Condensed Consolidated Statements of Cash Flows (US$ thousands) | | For the nine months ended Sep 30, 2023 | For the nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 1,497,436 | 1,697,077 | | Net cash used in investing activities | (954,290) | (605,362) | | 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 | (239,535) | 2,327,153 | | Cash at the beginning of the period | 3,520,351 | 723,966 | | Cash at the end of the period | 3,280,816 | 3,051,119 | [Non-GAAP Financial Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Daqo New Energy uses non-GAAP financial measures, including EBITDA and adjusted net income, to offer investors a clearer view of its core operational performance by excluding non-cash items like share-based compensation, with Q3 2023 adjusted net income at $44.0 million and EBITDA at $70.2 million - The company utilizes non-GAAP measures such as EBITDA, adjusted net income, and adjusted EPS to provide supplemental information on its financial performance, primarily by excluding non-cash share-based compensation costs[23](index=23&type=chunk)[24](index=24&type=chunk) Reconciliation of Net Income to EBITDA (non-GAAP) (US$ thousands) | | Three months ended Sep 30, 2023 | Three months ended Jun 30, 2023 | Three months ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Net income | 17,843 | 162,182 | 545,820 | | Adjustments (Tax, Interest, D&A) | 52,371 | 67,814 | 174,223 | | **EBITDA (non-GAAP)** | **70,214** | **229,996** | **720,043** | | **EBITDA margin (non-GAAP)** | **14.5%** | **36.1%** | **59.0%** | Reconciliation to Adjusted Net Income (non-GAAP) (US$ thousands) | | Three months ended Sep 30, 2023 | Three months ended Jun 30, 2023 | Three months ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Net (loss)/income attributable to shareholders | (6,312) | 103,723 | 323,409 | | Share-based compensation | 50,287 | 30,824 | 266,962 | | **Adjusted net income (non-GAAP)** | **43,975** | **134,547** | **590,371** | | **Adjusted earnings per basic ADS (non-GAAP)** | **$0.59** | **$1.75** | **$7.81** |

Daqo New Energy Corporation (NYSE:DQ) Q2 2023 Earnings Conference Call August 3, 2023 8:00 AM ET Company Participants Longgen Zhang - CEO & Director Ming Yang - CFO Conference Call Participants Philip Shen - ROTH MKM Partners Alan Lau - Jefferies Ji Chao - Goldman Sachs Group Operator Good day, and welcome to the Daqo New Energy Second Quarter 2023 Results Conference Call. [Operator Instructions]. I'd like to turn the call over to Ms. [indiscernible], Investor Relations Director. Please go ahead. Unidentifi ...

Exhibit 99.1 1 Daqo New Energy Announces Unaudited Second Quarter 2023 Results Shanghai, China—August 3, 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 second quarter of 2023. Second Quarter 2023 Financial and Operating Highlights · Polysilicon production volume was 45,306 MT in Q2 2023, compared to 33,848 MT in Q1 2023 · Polysilicon s ...