Daqo New Energy(US:DQ) Prnewswireยท2024-10-30 10:00Core Viewpoint - Daqo New Energy Corp. reported a challenging third quarter in 2024, with significant losses but improvements in gross margin and cash costs compared to the previous quarter. The company maintains a strong balance sheet and liquidity despite the difficult market conditions in the solar PV industry [1][6][8]. Financial and Operating Highlights - Polysilicon production volume was 43,592 MT in Q3 2024, down from 64,961 MT in Q2 2024 [2][3]. - Polysilicon sales volume was 42,101 MT in Q3 2024, compared to 43,082 MT in Q2 2024 [2][3]. - Average total production cost increased to $6.61/kg in Q3 2024 from $6.19/kg in Q2 2024 [2][3]. - Average cash cost decreased slightly to $5.34/kg in Q3 2024 from $5.39/kg in Q2 2024 [2][3]. - Average selling price (ASP) fell to $4.69/kg in Q3 2024 from $5.12/kg in Q2 2024 [2][3]. - Revenue was $198.5 million in Q3 2024, down from $219.9 million in Q2 2024 [2][3]. - Gross loss was $60.6 million in Q3 2024, an improvement from a gross loss of $159.2 million in Q2 2024 [2][3]. - Gross margin improved to -30.5% in Q3 2024 from -72.4% in Q2 2024 [2][3]. - Net loss attributable to shareholders was $60.7 million in Q3 2024, compared to $119.8 million in Q2 2024 [2][3]. - Adjusted net loss (non-GAAP) was $39.4 million in Q3 2024, down from $98.8 million in Q2 2024 [2][3]. - EBITDA (non-GAAP) was -$34.3 million in Q3 2024, an improvement from -$144.9 million in Q2 2024 [2][3]. Management Remarks - The CEO noted that the solar industry in China is facing over-supply and challenging market conditions, leading to reduced production utilization rates and maintenance activities [6][8]. - The company has a cash balance of $853 million and maintains strong liquidity with quick assets totaling $2.4 billion [6][8]. - Production utilization was adjusted to 50% due to weak market demand [7][8]. Market Outlook - The company expects Q4 2024 polysilicon production volume to be approximately 31,000 MT to 34,000 MT, with full-year production projected between 200,000 MT to 210,000 MT [10][12]. - The polysilicon supply in China decreased by 15% and 6% month-over-month in July and August 2024, respectively, easing inventory pressure [8][9]. - Polysilicon prices stabilized after reaching their lowest levels, with a rebound observed in August and September 2024 [8][9]. - The company believes the current market downturn will lead to a healthier market in the long term as inefficient manufacturers exit the business [9][10].