Workflow
Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2024 Results
DQDaqo New Energy(DQ) Prnewswire·2025-02-27 09:50

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 195.4millionfrom195.4 million from 198.5 million in Q3 2024 and 476.3millioninQ42023[3][15].−Grosslosswas476.3 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 60.6millionandamarginof−30.560.6 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 60.7millioninQ32024[3][23].−LossperbasicADSwas60.7 million in Q3 2024 [3][23]. - Loss per basic ADS was 2.71, compared to 0.92inQ32024[3][23].−EBITDAwas−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 1,029.1million,downfrom1,029.1 million, down from 2,307.7 million in 2023 [6][27]. - Gross loss for the year was 212.9million,withagrossmarginof−20.7212.9 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 345.2million,comparedtoanetincomeof345.2 million, compared to a net income of 429.5 million in 2023 [6][34]. - Adjusted net loss (non-GAAP) was 272.8million,comparedtoanadjustednetincomeof272.8 million, compared to an adjusted net income of 563.1 million in 2023 [11][35]. - EBITDA for the year was -338.8million,withanEBITDAmarginof−32.9338.8 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/kginQ42024from6.81/kg in Q4 2024 from 6.61/kg in Q3 2024, while average cash cost decreased to 5.04/kgfrom5.04/kg from 5.34/kg [5][10]. - Average selling price (ASP) for polysilicon was 4.62/kginQ42024,downfrom4.62/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].