Daqo New Energy(DQ) - 2023 Q2 - Quarterly Report

Production and Capacity - Polysilicon production volume was 33,848 MT in Q1 2023, a slight increase from 33,702 MT in Q4 2022[2] - The company expects to produce approximately 44,000 MT to 46,000 MT of polysilicon in Q2 2023, a 30% to 36% increase compared to Q1 2023[8] - The total polysilicon production forecast for 2023 is approximately 193,000 MT to 198,000 MT, representing a 44% to 48% increase compared to 2022[8] - The company has a total polysilicon nameplate capacity of 205,000 metric tons, positioning it as one of the world's lowest-cost producers[23] - Daqo New Energy Corp. plans to continue focusing on expanding its production capacity and reducing costs amid fluctuating market conditions[24] Financial Performance - Revenue for Q1 2023 was $709.8 million, down 17.8$864.3 million in Q4 2022[9] - Gross profit decreased to $506.7 million in Q1 2023, resulting in a gross margin of 71.4$278.8 million in Q1 2023, down from $332.7 million in Q4 2022[12] - Adjusted net income (non-GAAP) was$310.2 million in Q1 2023, compared to $363.1 million in Q4 2022[13] - EBITDA (non-GAAP) for Q1 2023 was$490.2 million, with an EBITDA margin of 69.1%, down from 75.0% in Q4 2022[14] - Revenues for Q1 2023 were $709.834 million, a decrease of 18$864.251 million in Q4 2022 and a decrease of 44.5% from $1.280 billion in Q1 2022[27] - Gross profit for Q1 2023 was$506.732 million, down from $668.883 million in Q4 2022 and$813.556 million in Q1 2022, reflecting a significant decline in profitability[27] - Net income attributable to Daqo New Energy Corp. shareholders for Q1 2023 was $278.804 million, compared to$332.733 million in Q4 2022 and $535.843 million in Q1 2022, indicating a year-over-year decline of 48$3.56, down from $4.26 in Q4 2022 and$7.17 in Q1 2022[27] - Adjusted net income attributable to Daqo New Energy Corp. shareholders was $310.205 million for the three months ended March 31, 2023, compared to$363.109 million in the previous quarter and $538.200 million in the same quarter last year[35] - Adjusted earnings per basic ADS (non-GAAP) decreased to$3.96 for the three months ended March 31, 2023, from $4.65 in the previous quarter and$7.20 in the same quarter last year[35] - Adjusted earnings per diluted ADS (non-GAAP) was $3.93 for the three months ended March 31, 2023, down from$4.60 in the previous quarter and $7.02 in the same quarter last year[35] - EBITDA (non-GAAP) for the three months ended March 31, 2023, was$490.214 million, a decrease from $648.522 million in the previous quarter and$826.786 million in the same quarter last year[34] - EBITDA margin (non-GAAP) was 69.1% for the three months ended March 31, 2023, compared to 75.0% in the previous quarter and 64.6% in the same quarter last year[34] Cash and Assets - Cash balance improved to $4.1 billion as of March 31, 2023, compared to$3.5 billion at the end of 2022[16] - Cash, cash equivalents, and restricted cash increased to $4.131 billion as of March 31, 2023, up from$3.520 billion at the end of 2022[29] - Net cash provided by operating activities for Q1 2023 was $807.039 million, a significant increase compared to$231.344 million in Q1 2022[31] - Total assets as of March 31, 2023, were $8.190 billion, up from$7.594 billion at the end of 2022[29] - Total liabilities increased to $1.207 billion as of March 31, 2023, compared to$989.490 million at the end of 2022[29] Shareholder Actions - The company has initiated a $700 million share repurchase program, with$85.1 million spent to date[7]