Daqo Energy(SH:688303) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - Daqo Energy (688303) reported a significant decline in financial performance for the first half of 2025, with total revenue dropping by 67.93% year-on-year to 1.47 billion yuan and a net loss of 1.15 billion yuan, a 71.1% decrease compared to the previous year [1] Financial Performance Summary - Total revenue for the first half of 2025 was 1.47 billion yuan, down from 4.58 billion yuan in 2024, reflecting a decrease of 67.93% [1] - The net profit attributable to shareholders was -1.15 billion yuan, compared to -670 million yuan in 2024, marking a decline of 71.1% [1] - Gross margin fell to -34.05%, a decrease of 1392.89% year-on-year, while net margin dropped to -78.0%, down 433.5% [1] - The total of selling, administrative, and financial expenses reached 159 million yuan, accounting for 10.82% of total revenue, an increase of 776.53% year-on-year [1] - Earnings per share were -0.53 yuan, a decrease of 70.97% from the previous year [1] Changes in Financial Items - Cash and cash equivalents decreased by 66.86% due to funds being allocated to time deposits and structured deposits [3] - Accounts receivable increased by 118.26% as the semiconductor business expanded [3] - Contract liabilities decreased by 44.64% due to falling prices and sales volumes of polysilicon [4] - Accounts payable rose by 267.9% as new bank acceptances were issued for operational expenses [3] Cost and Expense Analysis - Operating costs decreased by 55.84% due to lower sales volumes [4] - Selling expenses fell by 27.0% as overall spending decreased with reduced sales scale [4] - Administrative expenses decreased by 16.44% due to the expiration of employee stock incentives [5] - Financial expenses increased by 106.12% due to lower bank deposit balances and interest rates [6] - R&D expenses decreased by 61.12% as project scales were reduced [7] Cash Flow Analysis - Net cash flow from operating activities improved by 53.6% due to lower unit cash costs and reduced output [7] - Net cash flow from investing activities decreased by 83.15% as there were no new projects [7] - Net cash flow from financing activities decreased by 99.97% as there were no cash dividends due to last year's losses [7] Market Position and Future Outlook - Analysts expect Daqo Energy's performance for 2025 to be a net loss of 1.58 billion yuan, with an average earnings per share of -0.74 yuan [8] - The company's historical financial performance shows a median ROIC of 14.44%, but the worst year recorded a ROIC of -5.91%, indicating a fragile business model [7]