SHANGHAI, Feb. 12, 2025 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for fourth quarter and fiscal year of 2024 ended December 31, 2024 before U.S. markets open on Thursday, February 27, 2025. The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on February 27, 2025 (9:00 PM ...

Core Viewpoint - Daqo New Energy Corp. announced a significant estimated net loss for its subsidiary Xinjiang Daqo New Energy for the fiscal year 2024, marking a substantial decline from the previous year's profit [1][2]. Financial Performance - Xinjiang Daqo estimates a net loss attributable to its shareholders in the range of RMB2.6 billion to RMB3.1 billion for FY2024, compared to a net profit of RMB5.8 billion in FY2023, indicating a potential decline of approximately 145% to 153% year-over-year [2]. - The estimated losses are attributed to provisions for inventory impairment and fixed asset impairment [2]. Company Structure and Operations - Daqo New Energy holds approximately 72.4% of Xinjiang Daqo's equity interest, with the majority of the company's revenue and net income derived from Xinjiang Daqo [3]. - The company's consolidated financial results are reported in U.S. dollars in accordance with U.S. GAAP, while the estimated net loss for Xinjiang Daqo is prepared in RMB under PRC GAAP [3]. Production Capacity - Daqo New Energy is a leading manufacturer of high-purity polysilicon for the global solar PV industry, with a total polysilicon nameplate capacity of 305,000 metric tons, positioning itself as one of the world's lowest-cost producers [5].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Company and Industry Summary - The analysis is intended solely for informational purposes and should not be considered as professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [4]. - The article highlights that the views expressed may not reflect those of the platform as a whole, suggesting a diversity of opinions among analysts [4].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $198.5 million, down from $219.9 million in Q2 2024 and $484.8 million in Q3 2023, primarily due to a decrease in average selling price (ASP) and sales volume [17] - Gross loss was $60.6 million, an improvement from a gross loss of $159.2 million in Q2 2024, but a decline from a gross profit of $67.8 million in Q3 2023. Gross margin improved to negative 30.5% from negative 72% in Q2 2024 [18] - Net loss attributable to shareholders was $60.7 million, compared to a loss of $120 million in Q2 2024 and $6.3 million in Q3 2023. Loss per basic ADS was $0.92, improved from $1.81 in Q2 2024 [22] - Adjusted net loss was $39.4 million, down from $98.8 million in Q2 2024, and adjusted loss per basic ADS was $0.59 compared to $1.50 in Q2 2024 [23] Business Line Data and Key Metrics Changes - Total production volume for polysilicon facilities was 43,592 metric tons, with a production utilization rate adjusted to 50% due to weak market demand [9] - The N-type product mix reached 75%, with Phase 5B achieving 70% N-type, aiming for 100% N-type by the end of next year [9] - Cash cost per kilogram decreased to $5.34 from $5.39 in Q2 2024, while unit production cost increased by 7% to $6.61 per kilogram due to reduced production levels [9] Market Data and Key Metrics Changes - Polysilicon supply in China decreased by 15% and 6% month-over-month in July and August 2024, respectively, with total production volume falling below 130,000 metric tons in August, the lowest year-to-date [11] - Polysilicon prices stabilized after reaching their lowest levels, rebounding to approximately RMB38 to RMB43 per kilogram in August and September [12] - New solar PV installations in China reached 160.88 gigawatts in the first nine months of 2024, growing 24.8% year-over-year [14] Company Strategy and Development Direction - The company aims to enhance its competitive advantage through higher-efficiency N-type technology and optimizing cost structures via digital transformation and AI adoption [15] - The management believes the current market downturn will lead to a healthier market in the long run, as poor profitability will drive inefficient players out of the market [12] Management Comments on Operating Environment and Future Outlook - The management noted that the solar industry in China is facing challenges due to oversupply, with market selling prices below production costs for most players [7] - There is optimism about potential government policies aimed at reducing production based on energy intensity, which could stabilize the market [31][34] - The management expects that the fourth quarter will see strong new solar installations historically, but current demand is relatively weak [62] Other Important Information - The company maintains a strong liquidity position with a cash balance of $53 million and short-term investments of $245 million, totaling quick assets of $2.4 billion [8] - The company anticipates full-year 2024 production volume to be in the range of 200,000 to 210,000 metric tons [10] Q&A Session Summary Question: Government policy on capacity reduction based on energy intensity - Management discussed ongoing industry conversations regarding potential production reductions to promote healthier development [31][32] Question: Timing of government policy impact on pricing - Management indicated uncertainty about timing but suggested that policies could take one to two months to formulate [36] Question: Impairment embedded in COGS - CFO clarified that inventory impairment was approximately $80 million, with two-thirds related to finished goods [55] Question: Average production cost rebound - CFO confirmed that the increase in production cost was due to lower utilization rates, with idle facility costs contributing to the rise [57] Question: Future pricing outlook - Management expressed cautious optimism about potential price rebounds but noted the difficulty in forecasting due to supply and demand dynamics [62]

Company Performance - Daqo New Energy reported a quarterly loss of $0.92 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.80, and a significant decline from a loss of $0.09 per share a year ago, indicating an earnings surprise of -15% [1] - The company posted revenues of $198.5 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 6.20%, but this represents a decline from year-ago revenues of $484.84 million [2] - Daqo has not surpassed consensus EPS estimates over the last four quarters and has topped consensus revenue estimates only once during the same period [2] Stock Outlook - Daqo shares have underperformed the market, losing about 15.4% since the beginning of the year, while the S&P 500 has gained 22.3% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$1.05 on revenues of $194.7 million, and -$3.46 on revenues of $1.11 billion for the current fiscal year [7] - The current Zacks Rank for Daqo is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Chemical - Specialty industry, to which Daqo belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could influence investor sentiment [5]

SHANGHAI, Oct. 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 the appointment of Ms. Xiaoyu Xu as Deputy Chief Executive Officer of the Company, effective October 30, 2024. Ms. Xiaoyu Xu has served as the Company's Investor Relations Director and Board Secretary since May 2023 and as a Director since November 2023. She previously worked at J.P. Morgan in ...

SHANGHAI, Oct. 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 its unaudited financial results for the third quarter of 2024. Third Quarter 2024 Financial and Operating Highlights Polysilicon production volume was 43,592 MT in Q3 2024, compared to 64,961 MT in Q2 2024 Polysilicon sales volume was 42,101 MT in Q3 2024, compared to 43,082 MT in Q2 2024 Polys ...

SHANGHAI, Oct. 15, 2024 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for the third quarter of 2024 ended September 30, 2024 before U.S. markets open on Wednesday, October 30, 2024.The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on October 30, 2024 (8:00 PM Beijing / Hon ...

Can stimulus save the Chinese economy?There has been great news for companies based in China, and the EV and renewable energy sector reacted strongly this week. According to data provided by S&P Global Market Intelligence, Li Auto (LI 0.80%) jumped as much as 14.9% in trading this week, Zeekr Intelligent Technology (ZK -2.95%) rose 30.3%, and Daqo New Energy (DQ 7.86%) jumped 19.8%.Not only have the Chinese stimulus plans been a tailwind, Li and Zeekr also announced their deliveries for September 2024, and ...

Shares of Daqo New Energy Corp (DQ, Financial) surged 5.75% in mid-day trading on Oct 2. The stock reached an intraday high of $22.42, before settling at $21.90, up from its previous close of $20.71. This places DQ 27.07% below its 52-week high of $30.03 and 60.79% above its 52-week low of $13.62. Trading volume was 2,378,579 shares, 304.5% of the average daily volume of 781,031.Wall Street Analysts ForecastBased on the one-year price targets offered by 11 analysts, the average target price for Daqo New Ene ...