SHANGHAI, Oct. 28, 2021 /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 2021.
Third Quarter 2021 Financial and Operating Highlights
- Polysilicon production volume was 21,684 MT in Q3 2021,
compared to 21,102 MT in Q2 2021
- Polysilicon sales volume was 21,183 MT in Q3 2021, compared to
21,060 MT in Q2 2021
- Polysilicon average total production cost(1) was
$6.84/kg in Q3 2021, compared to
$6.31/kg in Q2 2021
- Polysilicon average cash cost(1) was $5.96/kg in Q3 2021, compared to $5.41/kg in Q2 2021
- Polysilicon average selling price (ASP) was $27.55/kg in Q3 2021, compared to $20.81/kg in Q2 2021
- Revenue was $585.8 million in Q3
2021, compared to $441.4 million in
Q2 2021
- Gross profit was $435.2 million
in Q3 2021, compared to $303.2
million in Q2 2021. Gross margin was 74.3% in Q3 2021,
compared to 68.7% in Q2 2021
- Net income attributable to Daqo New Energy Corp. shareholders
was $292.3 million in Q3 2021,
compared to $232.1 million in Q2
2021
- Earnings per basic American Depositary Share
(ADS)(3) was $3.95 in Q3
2021, compared to $3.15 in Q2
2021
- EBITDA (non-GAAP)(2) was $441.8 million in Q3 2021, compared to
$311.7 million in Q2 2021. EBITDA
margin (non-GAAP)(2) was 75.4% in Q3 2021, compared to
70.6% in Q2 2021
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $294.7 million in Q3 2021, compared to
$234.5 million in Q2 2021
- Adjusted earnings per basic ADS(3)
(non-GAAP)(2) was $3.98 in
Q3 2021, compared to $3.18 in Q2
2021
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Sep 30,
2021
|
Jun 30,
2021
|
Sep 30,
2020
|
Revenues
|
585.8
|
441.4
|
125.5
|
Gross
profit
|
435.2
|
303.2
|
45.3
|
Gross
margin
|
74.3%
|
68.7%
|
36.0%
|
Income from
operations
|
421.7
|
292.4
|
33.3
|
Net income
attributable to Daqo New Energy Corp. shareholders
|
292.3
|
232.1
|
20.8
|
Earnings per basic
ADS(3) ($ per ADS)
|
3.95
|
3.15
|
0.29
|
Adjusted net income
(non-GAAP)(2) attributable to Daqo New Energy Corp.
shareholders
|
294.7
|
234.5
|
25.2
|
Adjusted earnings per
basic ADS(3) (non-GAAP)(2) ($ per
ADS)
|
3.98
|
3.18
|
0.35
|
EBITDA (non-GAAP)
(2)
|
441.8
|
311.7
|
51.6
|
EBITDA margin
(non-GAAP)(2)
|
75.4%
|
70.6%
|
41.1%
|
Polysilicon sales
volume (MT)
|
21,183
|
21,060
|
13,643
|
Polysilicon average
total production cost ($/kg)(1)
|
6.84
|
6.31
|
5.82
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
5.96
|
5.41
|
4.88
|
Notes:
(1) Production cost and cash
cost only refer to production in our polysilicon facilities.
Production cost is calculated by the inventoriable costs relating
to production of polysilicon in Xinjiang divided by the production
volume in the period indicated. Cash cost is calculated by the
inventoriable costs relating to production of polysilicon excluding
depreciation expense, divided by the production volume in the
period indicated.
(2) Daqo New Energy provides
EBITDA, EBITDA margins, adjusted net income attributable to Daqo
New Energy Corp. shareholders and adjusted earnings per basic ADS
on a non-GAAP basis to provide supplemental information regarding
its financial performance. For more information on these non-GAAP
financial measures, please see the section captioned "Use of
Non-GAAP Financial Measures" and the tables captioned
"Reconciliation of non-GAAP financial measures to comparable US
GAAP measures" set forth at the end of this press
release.
(3) ADS means American
Depositary Share. On November 17, 2020, the Company effected a
change of the ratio of its ADSs to ordinary shares from one (1) ADS
representing twenty-five (25) ordinary shares to one (1) ADS
representing five (5) ordinary shares. The earnings per ADS and
number of ADS information have been retrospectively adjusted to
reflect the change for all periods presented.
|
Management Remarks
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are
very excited to report an excellent quarter with record-high
production volume and net profit in the company's history. The
strong end market environment, supported by favorable global
policies to address climate change and rapidly increasing use of
green energy, resulted in stronger-than-expected downstream demand
that continues to push up polysilicon market prices. Our third
quarter polysilicon ASP was $27.55/kg, a significant sequential improvement
of more than 30% from $20.81/kg in
the second quarter. The end market demand continues to be strong
even under today's high-price module environment, and this has
further raised polysilicon market prices to the current level of
$33-$35/kg. Our production cost increased 8.4%
quarter-over-quarter primarily due to the increase in silicon
powder's cost. Excluding this impact, our production cost actually
decreased by approximately 1% quarter-over-quarter. The increasing
silicon powder cost will continue to impact our cost structure in
the fourth quarter. However, with the strong market demand, so far,
we have been able to pass down the majority of such cost increase
to our customers. Over the past three weeks, we have seen silicon
powder prices stabilizing and we expect they will gradually
normalize in the first half of next year as the energy and emission
controls could be somewhat relaxed compared to the fourth quarter
of this year and new supply of silicon powder will start to enter
the market."
"During the first three quarters of 2021, we generated
$653 million of cash flow from
operations. We repaid all our bank loans in the third quarter and
reduced our debt to asset ratio to 18.2%. At the end of the third
quarter, we had $661 million in cash
and cash equivalents, $414 million in
short-term investments which are low risk financial products, and
$353.3 million in bank notes
receivable which will mature in the next three to six months. This
total liquidity of $1.4 billion is a
strong foundation to support our expansion projects and future
plans to reward our investors. The construction of our Phase
4B capacity expansion project is
going smoothly according to schedule. We expect to complete the
construction by the end of 2021 and ramp up to full capacity by the
end of the first quarter of 2022."
"In the third and fourth quarter of this year, we have observed
some volatility in the global energy market. Prices of almost all
energy sources are going up quickly and significantly, including
the prices of natural gas, oil, and coal. In many regions in
China, many companies are required
to shut down production from time to time due to the shortage of
electricity supply and carbon emissions control. Fortunately, the
Chinese government quickly responded to the challenging situation
by accelerating coal production and allowing electricity prices for
industrial users to float according to market, resulting in rising
electricity prices. We expect these measures will further stimulate
the solar end market for electricity generation in the near term.
With solar already at grid parity broadly, higher fossil fuels make
solar projects more competitive. In addition, according to the
newly released policies, the usage of renewable energy will not be
counted towards the energy usage quota, which will further promote
renewable energy in the future. This also explains why the demand
from industrial users for solar distributed generation is strong
even in the current high-price module environment. On the other
hand, because of the strict energy quota and carbon emission
control, the overall expansion pace of the polysilicon industry
will inevitably slow down. For example, as we are now in the
process of identifying the location for our next expansion project,
the energy quota issue becomes more and more challenging. We will
be committed to using more renewable energy in our next polysilicon
project in order to secure the energy quota, which will allow us to
gradually realize the idea of 'green poly' or 'solar for
solar'."
"This October, at the United Nations Biodiversity Conference in
Kunming, Chinese President Xi Jinping announced that the first step
had been taken towards the construction of a huge 400 GW wind and
solar park. Construction on the first phase, comprising 100
gigawatts of wind and solar in deserts in China is already underway. The full 400 GW
project would be half finished by 2025. The Chinese government has
also released policies to promote energy storage systems especially
for water reservoirs storage in the near term. With all these plans
and policies in place, it's very clear that China has made a strong determination
supported by initial and detailed plans to build a new national
energy infrastructure in which renewable energy will play a
critical role. The newly announced policies and evolving energy
market environment illustrate a vast potential market for solar in
China which is much larger than
previously anticipated. Therefore, we are very optimistic about
solar PV's demand in the future and expect the polysilicon sector
will continue to be one of the most favorable sectors in the
foreseeable future, as polysilicon availability will remain as the
main constraint and determinant for the future size of the solar
end market."
Outlook and guidance
The Company produced 62,970 MT of polysilicon and sold
approximately 63,714 MT of
polysilicon in the first three quarters of 2021, representing full
utilization level of the company's production facilities. For the
full year of 2021, the Company's guidance on annual polysilicon
production volume is at the level of approximately 83,000 to
85,000 MT, inclusive of the impact of
the Company's annual facility maintenance.
This outlook reflects Daqo New Energy's current and preliminary
view as of the date of this press release and may be subject to
changes. The Company's ability to achieve these projections is
subject to risks and uncertainties. See "Safe Harbor Statement" at
the end of this press release.
Third Quarter 2021 Results
Revenues
Revenues were $585.8 million,
compared to $441.4 million in the
second quarter of 2021 and $125.5
million in the third quarter of 2020. The increase in
revenues as compared to the second quarter of 2021 as well as the
third quarter of 2020 was primarily due to higher ASPs and higher
polysilicon sales volume.
Gross profit and margin
Gross profit was $435.2 million,
compared to $303.2 million in the
second quarter of 2021 and $45.3 million in the third quarter of 2020.
Gross margin was 74.3%, compared to 68.7% in the second quarter of
2021 and 36.0% in the third quarter of 2020. The increase in gross
margin was primarily due to higher ASPs offset by slightly higher
production cost.
Selling, general and administrative expenses
Selling, general and administrative expenses were $11.4 million, compared to $9.3 million in the second quarter of 2021 and
$9.2 million in the third quarter of
2020. SG&A expenses during the quarter included $2.0 million in non-cash share-based compensation
costs related to the Company's share incentive plan, compared to
$2.0 million in the second quarter of
2021 and $4.0 million in the third
quarter of 2020. The increase as compared to the second
quarter of 2021 as well as the third quarter of 2020 was primarily
due to expenses related to the IPO of Xinjiang Daqo.
Research and development expenses
Research and development (R&D) expenses were $1.9 million, compared to $2.1 million in the second quarter of 2021 and
$1.7 million in the third quarter of
2020. Research and development expenses can vary from period to
period and reflect R&D activities that take place during the
quarter.
Income from operations and operating margin
As a result of the foregoing, income from operations was
$421.7 million, compared to
$292.4 million in the second quarter
of 2021 and $33.3 million in the
third quarter of 2020.
Operating margin was 72.0%, compared to 66.3% in the second
quarter of 2021 and 26.6% in the third quarter of 2020.
Interest expense
Interest expense was $6.4 million,
compared to $7.2 million in the
second quarter of 2021 and $5.4
million in the third quarter of 2020.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
As a result of the aforementioned, net income attributable to
Daqo New Energy Corp. shareholders was $292.3 million, compared to $232.1 million in the second quarter of 2021 and
$20.8 million in the third quarter of
2020.
Earnings per basic American Depository Share (ADS) was
$3.95, compared to $3.15 in the second quarter of 2021, and
$0.29 in the third quarter of
2020.
EBITDA (non-GAAP)
EBITDA (non-GAAP) was $441.8
million, compared to $311.7
million in the second quarter of 2021 and $51.6 million in the third quarter of 2020.
EBITDA margin (non-GAAP) was 75.4%, compared to 70.6% in the second
quarter of 2021 and 41.1% in the third quarter of 2020.
Financial Condition
As of September 30, 2021, the
Company had $660.9 million in cash
and cash equivalents and restricted cash, compared to $269.7 million as of June
30, 2021 and $109.8 million as
of September 30, 2020. As of
September 30, 2021, the notes
receivable balance was $353.3
million, compared to $97.0
million as of June 30, 2021
and $1.9 million as of September 30, 2020. As of September 30, 2021, total borrowings were nil,
compared to total borrowings of $156.6
million, including $70.9
million long-term borrowings, as of June 30, 2021 and total borrowings of
$271.0 million, including
$140.0 million long-term borrowings,
as of September 30, 2020.
Cash Flows
For the nine months ended September 30,
2021, net cash provided by operating activities was
$653.1 million, compared to
$71.1 million in the same period of
2020, the increase was primarily due to higher ASPs and higher
polysilicon sales volume, as well as prepayment of long-term
contracts from customers
For the nine months ended September 30,
2021, net cash used in investing activities was $855.8 million, compared to $80.3 million in the same period of 2020. The net
cash used in investing activities in 2021 and 2020 was primarily
related to the capital expenditures on the Company's polysilicon
expansion projects.
For the nine months ended September 30,
2021, net cash provided by financing activities was
$741.6 million, compared to
$1.1 million in the same period of
2020. The net cash provided by financing activities in 2021 was
primarily related to the net proceeds of $935.0 million contributed by Xinjiang Daqo' IPO
in China.
Use of Non-GAAP Financial Measures
To supplement Daqo New Energy's consolidated financial results
presented in accordance with United States Generally Accepted
Accounting Principles ("US GAAP"), the Company uses certain
non-GAAP financial measures that are adjusted for certain items
from the most directly comparable GAAP measures including earnings
before interest, taxes, depreciation and amortization ("EBITDA")
and EBITDA margin; adjusted net income attributable to Daqo New
Energy Corp. shareholders and adjusted earnings per basic and
diluted ADS. Our management believes that each of these non-GAAP
measures is useful to investors, enabling them to better assess
changes in key element of the Company's results of operations
across different reporting periods on a consistent basis,
independent of certain items as described below. Thus, our
management believes that, used in conjunction with US GAAP
financial measures, these non-GAAP financial measures provide
investors with meaningful supplemental information to assess the
Company's operating results in a manner that is focused on its
ongoing, core operating performance. Our management uses these
non-GAAP measures internally to assess the business, its financial
performance, current and historical results, as well as for
strategic decision-making and forecasting future results. Given our
management's use of these non-GAAP measures, the Company believes
these measures are important to investors in understanding the
Company's operating results as seen through the eyes of our
management. These non-GAAP measures are not prepared in accordance
with US GAAP or intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with US GAAP; the non-GAAP measures should be reviewed
together with the US GAAP measures, and may be different from
non-GAAP measures used by other companies.
The Company uses EBITDA, which represents earnings before
interest, taxes, depreciation and amortization, and EBITDA margin,
which represents the proportion of EBITDA in revenues. Adjusted net
income attributable to Daqo New Energy Corp. shareholders and
adjusted earnings per basic and diluted ADS exclude costs related
to share-based compensation. Share-based compensation is a non-cash
expense that varies from period to period. As a result, our
management excludes this item from our internal operating forecasts
and models. Our management believes that this adjustment for
share-based compensation provides investors with a basis to measure
the Company's core performance, including compared with the
performance of other companies, without the period-to-period
variability created by share-based compensation.
A reconciliation of non-GAAP financial measures to comparable US
GAAP measures is presented later in this document.
Conference Call
The Company has scheduled a conference call to discuss the
results at 8:00 AM Eastern Time on
October 28, 2021. (8:00 PM Beijing / Hong
Kong time on the same day).
The dial-in details for the live conference call are as
follows:
Participant dial in
(toll free):
|
+1-888-346-8982
|
Participant
international dial in:
|
+1-412-902-4272
|
China mainland toll
free:
|
4001-201203
|
Hong Kong toll
free:
|
800-905945
|
Hong Kong-local
toll:
|
+852-301-84992
|
Participants please
dial in 10 minutes before the call is scheduled to begin and ask
to
be joined into the Daqo New Energy Corp. call.
|
|
|
|
|
You can also listen to the conference call via Webcast through
the URL:
https://services.choruscall.com/links/dq211028.html
A replay of the call will be available 1 hour after the end of
the conference through November 5,
2021.
The conference call replay numbers are as follows:
US Toll
Free:
|
+1-877-344-7529
|
International
Toll:
|
+1-412-317-0088
|
Canada Toll
Free:
|
855-669-9568
|
Replay access
code:
|
10161212
|
To access the replay using an international dial-in number,
please select the link below.
https://services.choruscall.com/ccforms/replay.html
Participants will be required to state their name and company upon
entering the call.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a
leading manufacturer of high-purity polysilicon for the global
solar PV industry. Founded in 2007, the Company is one of the
world's lowest cost producers of high-purity polysilicon. It has a
total annual capacity of 70,000 metric tons of high-purity
polysilicon, with another 35,000 metric tons polysilicon capacity
under construction, which is expected to reach full capacity by the
end of the first quarter of 2022.
For more information, please visit www.dqsolar.com
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the fourth quarter and the full year of 2021 and
quotations from management in this announcement as well as Daqo New
Energy's strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the demand for photovoltaic products and the development
of photovoltaic technologies; global supply and demand for
polysilicon; alternative technologies in cell manufacturing; the
Company's ability to significantly expand its polysilicon
production capacity and output; the reduction in or elimination of
government subsidies and economic incentives for solar energy
applications; the Company's ability to lower its production costs;
and the duration of COVID-19 outbreaks in China and many other countries and the impact
of the outbreaks and the quarantines and travel restrictions
instituted by relevant governments on economic and market
conditions, including potentially weaker global demand for solar PV
installations that could adversely affect the Company's business
and financial performance. Further information regarding these and
other risks is included in the reports or documents the Company has
filed with, or furnished to, the U.S. Securities and Exchange
Commission. All information provided in this press release is as of
the date hereof, and the Company undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
Daqo New Energy
Corp.
Unaudited
Condensed Consolidated Statement of Operations and Comprehensive
Income
(US dollars in
thousands, except ADS and per ADS data)
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
Sep 30,
2021
|
|
Jun 30,
2021
|
|
Sep 30,
2020
|
|
Sep 30,
2021
|
|
Sep 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$585,782
|
|
$441,368
|
|
$125,529
|
|
$1,283,245
|
|
$427,878
|
Cost of
revenues
|
|
(150,583)
|
|
(138,133)
|
|
(80,276)
|
|
(425,866)
|
|
(303,373)
|
Gross
profit
|
|
435,199
|
|
303,235
|
|
45,253
|
|
857,379
|
|
124,505
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
expenses
|
|
(11,353)
|
|
(9,267)
|
|
(9,223)
|
|
(29,654)
|
|
(28,235)
|
Research and
development expenses
|
|
(1,927)
|
|
(2,101)
|
|
(1,746)
|
|
(5,226)
|
|
(5,358)
|
Other operating
(expense)/income
|
|
(203)
|
|
549
|
|
(954)
|
|
825
|
|
(1,036)
|
Total operating
expenses
|
|
(13,483)
|
|
(10,819)
|
|
(11,923)
|
|
(34,055)
|
|
(34,629)
|
Income from
operations
|
|
421,716
|
|
292,416
|
|
33,330
|
|
823,324
|
|
89,876
|
Interest
expense
|
|
(6,419)
|
|
(7,224)
|
|
(5,438)
|
|
(21,468)
|
|
(18,378)
|
Interest
income
|
|
1,913
|
|
793
|
|
200
|
|
2,989
|
|
719
|
Gain on changes of fair
values of short-
term investments
|
|
695
|
|
-
|
|
-
|
|
695
|
|
-
|
Income before income
taxes
|
|
417,905
|
|
285,985
|
|
28,092
|
|
805,540
|
|
72,217
|
Income tax
expense
|
|
(62,137)
|
|
(43,083)
|
|
(6,193)
|
|
(119,707)
|
|
(14,574)
|
Net income from
continuing operations
|
|
355,768
|
|
242,902
|
|
21,899
|
|
685,833
|
|
57,643
|
Loss from
discontinued operations, net of
tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(141)
|
Net income
|
|
355,768
|
|
242,902
|
|
21,899
|
|
685,833
|
|
57,502
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling
interest
|
|
63,439
|
|
10,802
|
|
1,142
|
|
78,185
|
|
1,132
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
|
$292,329
|
|
$232,100
|
|
$20,757
|
|
$607,648
|
|
$56,370
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
355,768
|
|
242,902
|
|
21,899
|
|
685,833
|
|
57,502
|
Foreign currency
translation adjustments
|
|
6,426
|
|
12,805
|
|
25,937
|
|
15,375
|
|
17,331
|
Total other
comprehensive income
|
|
6,426
|
|
12,805
|
|
25,937
|
|
15,375
|
|
17,331
|
Comprehensive
income
|
|
362,194
|
|
255,707
|
|
47,836
|
|
701,208
|
|
74,833
|
Comprehensive income
attributable to
non-controlling interest
|
|
64,979
|
|
11,314
|
|
1,163
|
|
80,080
|
|
1,148
|
Comprehensive income
attributable to
Daqo New Energy Corp. shareholders
|
|
$297,215
|
|
$244,393
|
|
$46,673
|
|
$621,128
|
|
$73,685
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ADS*
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
3.95
|
|
3.15
|
|
0.29
|
|
8.25
|
|
0.80
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
Basic
|
|
3.95
|
|
3.15
|
|
0.29
|
|
8.25
|
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
3.81
|
|
3.03
|
|
0.27
|
|
7.92
|
|
0.74
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
Diluted
|
|
3.81
|
|
3.03
|
|
0.27
|
|
7.92
|
|
0.74
|
Weighted average ADS
outstanding*
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
74,045,141
|
|
73,714,734
|
|
71,281,184
|
|
73,697,802
|
|
70,570,987
|
Diluted
|
|
76,681,604
|
|
76,688,538
|
|
76,626,371
|
|
76,744,977
|
|
76,398,480
|
Daqo New Energy
Corp.
Unaudited
Condensed Consolidated Balance Sheets
(US dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
2021
|
|
Jun 30,
2021
|
|
Sep 30,
2020
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
660,913
|
|
227,148
|
|
70,150
|
|
Restricted
cash
|
|
-
|
|
42,576
|
|
39,640
|
|
Short-term
investment
|
|
414,201
|
|
10,403
|
|
-
|
|
Accounts receivable,
net
|
|
72
|
|
-
|
|
42
|
|
Notes
receivable
|
|
353,299
|
|
96,977
|
|
1,908
|
|
Prepaid expenses and
other current assets
|
|
7,345
|
|
13,170
|
|
12,972
|
|
Advances to
suppliers
|
|
26,736
|
|
5,630
|
|
1,229
|
|
Inventories
|
|
46,231
|
|
33,815
|
|
53,640
|
|
Amount due from related
parties
|
|
-
|
|
-
|
|
213
|
|
Total current
assets
|
|
1,508,797
|
|
429,719
|
|
179,794
|
|
Property, plant and
equipment, net
|
|
1,442,505
|
|
1,217,524
|
|
987,295
|
|
Prepaid land use
right
|
|
36,882
|
|
37,020
|
|
29,815
|
|
Amount due from related
parties – long term
portion
|
|
886
|
|
31,568
|
|
-
|
|
Deferred tax
assets
|
|
-
|
|
-
|
|
1,386
|
|
Investment in
affiliate
|
|
693
|
|
692
|
|
658
|
|
Operating lease
right-of-use assets
|
|
46
|
|
73
|
|
137
|
|
Other non-current
assets
|
|
93
|
|
155
|
|
147
|
|
TOTAL
ASSETS
|
|
2,989,902
|
|
1,716,751
|
|
1,199,232
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
borrowings, including current portion
of long-term borrowings
|
|
-
|
|
85,661
|
|
131,064
|
|
Accounts
payable
|
|
22,226
|
|
18,303
|
|
19,739
|
|
Notes
payable
|
|
-
|
|
42,542
|
|
62,128
|
|
Advances from
customers-short term portion
|
|
179,986
|
|
115,856
|
|
17,544
|
|
Payables for purchases
of property, plant and
equipment
|
|
81,892
|
|
36,018
|
|
76,158
|
|
Accrued expenses and
other current liabilities
|
|
46,970
|
|
47,140
|
|
16,616
|
|
Amount due to related
parties
|
|
21,392
|
|
4,812
|
|
4,820
|
|
Income tax
payable
|
|
76,339
|
|
44,933
|
|
7,314
|
|
Lease liabilities -
short term portion
|
|
-
|
|
-
|
|
78
|
|
Total current
liabilities
|
|
428,805
|
|
395,265
|
|
335,461
|
|
Long-term
borrowings
|
|
-
|
|
70,948
|
|
139,967
|
|
Advance from customers
– long term portion
|
|
90,247
|
|
78,212
|
|
1,266
|
|
Amount due to related
parties - long term
portion
|
|
-
|
|
4,385
|
|
10,897
|
|
Deferred government
subsidies
|
|
21,885
|
|
22,106
|
|
21,157
|
|
Deferred Tax
Liabilities
|
|
2,523
|
|
2,526
|
|
5,647
|
|
TOTAL
LIABILITIES
|
|
543,460
|
|
573,442
|
|
514,395
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
37
|
|
37
|
|
36
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
1,014,496
|
|
417,830
|
|
405,784
|
|
Retained
earnings
|
|
937,766
|
|
645,436
|
|
257,292
|
|
Accumulated other
comprehensive
income/(loss)
|
|
39,748
|
|
34,861
|
|
(2,622)
|
|
Total Daqo New Energy
Corp. shareholders'
equity
|
|
1,990,298
|
|
1,096,415
|
|
658,741
|
|
Non-controlling
interest
|
|
456,144
|
|
46,894
|
|
26,096
|
|
TOTAL
EQUITY
|
|
2,446,442
|
|
1,143,309
|
|
684,837
|
|
TOTAL LIABILITIES
& EQUITY
|
|
2,989,902
|
|
1,716,751
|
|
1,199,232
|
|
Daqo New Energy
Corp.
Unaudited
Condensed Consolidated Statements of Cash Flows
(US dollars in
thousands)
|
|
|
|
For the nine months
ended Sep 30,
|
|
|
2021
|
|
2020
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
685,833
|
|
57,502
|
|
Less: Loss from
discontinued operations, net of tax
|
|
-
|
|
(141)
|
|
Net income from
continuing operations
|
|
685,833
|
|
57,643
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
65,263
|
|
68,248
|
|
Changes in operating
assets and liabilities
|
|
(98,027)
|
|
(54,722)
|
|
Net cash provided by
operating activities-continuing operations
|
|
653,069
|
|
71,169
|
|
Net cash used in
operation activities-discontinued operations
|
|
-
|
|
(50)
|
|
Net cash provided by
operating activities
|
|
653,069
|
|
71,119
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(437,661)
|
|
(80,147)
|
|
Purchases of land use
right
|
|
(6,224)
|
|
-
|
|
(Purchases)/Maturities
of short-term investment, net
|
|
(411,903)
|
|
-
|
|
Net cash used in
investing activities-continuing operations
|
|
(855,788)
|
|
(80,147)
|
|
Net cash used in
investing activities-discontinuing operations
|
|
-
|
|
(195)
|
|
Net cash used in
investing activities
|
|
(855,788)
|
|
(80,342)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Net cash provided by
financing activities – continuing operations
|
|
741,639
|
|
1,127
|
|
Net cash used in
financing activities – discontinued operations
|
|
-
|
|
(64)
|
|
Net cash provided by
financing activities
|
|
741,639
|
|
1,063
|
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
3,589
|
|
2,656
|
|
Net
increase/(decrease) in cash, cash equivalents and restricted
cash
|
|
542,509
|
|
(5,504)
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
|
118,404
|
|
115,294
|
|
Cash, cash
equivalents and restricted cash at the end of the period
|
|
660,913
|
|
109,790
|
|
|
|
|
|
|
|
The following table
provides a reconciliation of cash, cash equivalents, and restricted
cash reported within the
statement of financial position that sum to the total of the same
such amounts shown in the statement of cash flows.
|
|
|
|
|
|
|
|
|
|
Sep 30,
2021
|
|
Sep 30,
2020
|
Cash and cash
equivalents
|
|
660,913
|
|
70,150
|
Restricted
cash
|
|
-
|
|
39,640
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
660,913
|
|
109,790
|
Daqo New Energy
Corp.
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
(US dollars in
thousands)
|
|
|
|
|
Three months
Ended
|
Nine months
Ended
|
|
|
Sep 30,
2021
|
|
Jun 30,
2021
|
|
Sep 30,
2020
|
|
Sep 30,
2021
|
|
Sep 30,
2020
|
Net income
from continuing operation
|
|
355,768
|
|
242,902
|
|
21,899
|
|
685,833
|
|
57,643
|
Income tax
expense
|
|
62,137
|
|
43,083
|
|
6,193
|
|
119,707
|
|
14,574
|
Interest
expense
|
|
6,419
|
|
7,224
|
|
5,438
|
|
21,468
|
|
18,378
|
Interest
income
|
|
(1,913)
|
|
(793)
|
|
(200)
|
|
(2,989)
|
|
(719)
|
Depreciation &
Amortization
|
|
19,391
|
|
19,322
|
|
18,289
|
|
57,626
|
|
51,568
|
EBITDA from continuing
operation (non-GAAP)
|
|
441,802
|
|
311,738
|
|
51,619
|
|
881,645
|
|
141,444
|
EBITDA
margin from continuing
operation (non-GAAP)
|
|
75.4%
|
|
70.6%
|
|
41.1%
|
|
68.7%
|
|
33.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
Ended
|
Nine months
Ended
|
|
|
Sep 30,
2021
|
|
Jun 30,
2021
|
|
Sep 30,
2020
|
|
Sep 30,
2021
|
|
Sep 30,
2020
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
292,329
|
|
232,100
|
|
20,757
|
|
607,648
|
|
56,370
|
Share-based
compensation
|
|
2,359
|
|
2,358
|
|
4,478
|
|
7,718
|
|
13,430
|
Adjusted net
income (non-GAAP) attributable to Daqo
New Energy Corp. shareholders
|
|
294,688
|
|
234,458
|
|
25,235
|
|
615,366
|
|
69,800
|
Adjusted earnings
per basic ADS* (non-GAAP)
|
|
$3.98
|
|
$3.18
|
|
$0.35
|
|
$8.35
|
|
$0.99
|
Adjusted earnings
per diluted ADS* (non-GAAP)
|
|
$3.84
|
|
$3.06
|
|
$0.33
|
|
$8.02
|
|
$0.91
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Email: dqir@daqo.com
Christensen
In China
Mr. Rene Vanguestaine
Phone: +86-10- 5900-1548
E-mail: rvanguestaine@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information, please visit www.dqsolar.com
View original
content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-third-quarter-2021-results-301410761.html
SOURCE Daqo New Energy Corp.