CHONGQING, China, May 8, 2018 /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 first quarter of 2018.
First Quarter 2018 Financial and Operating Highlights
- Polysilicon production volume of 5,657
MT in Q1 2018, an increase from 5,339
MT in Q4 2017
- Polysilicon external sales volume(1) of
5,411 MT in Q1 2018, an increase from
4,730 MT in Q4 2017
- Polysilicon average total production cost(2) of
$9.19/kg in Q1 2018, compared to
$9.40/kg in Q4 2017
- Polysilicon average cash cost(2) of $7.53/kg in Q1 2018, compared to $7.64/kg in Q4 2017
- Polysilicon average selling price (ASP) was $17.68/kg in Q1 2018, compared to $19.09/kg in Q4 2017
- Solar wafer sales volume of 13.3 million pieces in Q1 2018,
compared to 22.3 million pieces in Q4 2017
- Revenue of $103.3 million in Q1
2018, compared to $103.7 million in
Q4 2017
- Gross profit of $46.2 million in
Q1 2018, compared to $46.9 million in
Q4 2017. Gross margin of 44.8% in Q1 2018, compared to 45.2% in Q4
2017
- Non-GAAP gross margin(3) of 45.2% in Q1 2018,
compared to 45.6% in Q4 2017
- EBITDA (non-GAAP)(3) of $51.7
million in Q1 2018, compared to $53.6
million in Q4 2017
- EBITDA margin (non-GAAP)(3) of 50.0% in Q1 2018,
compared to 51.7% in Q4 2017
- Net income attributable to Daqo New Energy shareholders of
$31.6 million in Q1 2018, compared to
$33.7 million in Q4 2017 and
$22.9 million in Q1 2017
- Earnings per basic American Depository Share (ADS) of
$2.91 in Q1 2018, compared to
$3.16 in Q4 2017, and $2.18 in Q1 2017
- Adjusted net income (non-GAAP)(3) attributable to
Daqo New Energy shareholders of $32.9
million in Q1 2018, compared to $35.3
million in Q4 2017 and $24.8
million in Q1 2017
- Adjusted earnings per basic ADS (non-GAAP)(3) of
$3.03 in Q1 2018, compared to
$3.31 in Q4 2017, and $2.36 in Q1 2017
|
Three months
ended
|
US$
millions except as indicated
otherwise
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
Revenues
|
103.3
|
103.7
|
83.8
|
Gross
profit
|
46.2
|
46.9
|
35.9
|
Gross
margin
|
44.8%
|
45.2%
|
42.8%
|
Operating
income
|
41.7
|
43.6
|
32.2
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
31.6
|
33.7
|
22.9
|
Earnings per basic ADS
($ per ADS)
|
2.91
|
3.16
|
2.18
|
Adjusted net income
(non-GAAP)(3)
attributable to Daqo New Energy
Corp. shareholders
|
32.9
|
35.3
|
24.8
|
Adjusted earnings per
basic ADS (non-
GAAP)(3) ($ per ADS)
|
3.03
|
3.31
|
2.36
|
Non-GAAP gross
profit(3)
|
46.6
|
47.3
|
36.9
|
Non-GAAP gross
margin(3)
|
45.2%
|
45.6%
|
44.0%
|
EBITDA
(non-GAAP)(3)
|
51.7
|
53.6
|
41.7
|
EBITDA
margin(3) (non-GAAP)
|
50.0%
|
51.7%
|
49.8%
|
Polysilicon sales
volume (MT) (1)
|
5,411
|
4,730
|
4,223
|
Polysilicon production
cost ($/kg)(2)
|
9.19
|
9.40
|
8.41
|
Polysilicon cash cost
(excl. dep'n) ($/kg)(2)
|
7.53
|
7.64
|
6.68
|
|
|
Notes:
|
(1) The Company's
polysilicon external sales volume excludes internal sales to Daqo
New Energy's Chongqing wafer manufacturing subsidiary, which
utilizes polysilicon as raw material for the production of solar
wafers. The sales volume is the quantity of goods that have been
received by external customers, and thus the corresponding revenue
has been recognized during the period indicated.
|
(2) Production cost
and cash cost only refer to production in our Xinjiang 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 indicted. Cash cost is
calculated by the inventoriable costs relating to production of
polysilicon excluding depreciation expense in Xinjiang, divided by
the production volume in the period indicated.
|
(3) Daqo New Energy
provides non-GAAP gross profit, non-GAAP gross margin, EBITDA,
EBITDA margin, adjusted net income attributable to Daqo New Energy
Corp. shareholders and adjusted earnings per 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.
|
Management Remarks
"I am pleased to announce another excellent quarter of
operational and financial results in which we produced a record
high 5,657 MT in polysilicon,"
commented Mr. Longgen Zhang, CEO of Daqo New Energy. "We also broke
our record for external sales volume during the quarter by shipping
5,411 MT. This strong growth in
production and external sales volumes is being driven by our
continuing focus on improving manufacturing efficiency and
maximizing overall output. Demand for our high-quality polysilicon
products remained strong and allowed us to generate $103.3 million in revenue, a gross margin of
44.8%, $31.6 million in net income
attributable to Daqo New Energy shareholders, $51.7 million in EBITDA, and an EBITDA margin of
50.0%."
"Polysilicon ASPs softened in February due to the Chinese New
Year holiday but grew strongly in March as downstream customers
resumed production. Demand for our ultra-high-quality
mono-crystalline-grade polysilicon in particular, which now
accounts for approximately 60% of our total production volume,
rebounded significantly after the holiday period which can be seen
in our record high production volumes and low inventory levels. We
signed a 39,600 MT ultra-high-quality
polysilicon supply agreement with LONGi in early April that will
span from 2018 to 2020 which underlines our reputation as a
reliable and preferred supplier. Demand for our
mono-crystalline-grade polysilicon also remains robust as we
increasingly benefit from its price premium over our
multi-crystalline-grade polysilicon and increased demand throughout
the rest of the year."
"The latest industry forecasts indicate that the global solar
installations will grow by approximately 10-15% in 2018. According
to China's National Energy
Administration, China installed
9.7 GW of PV modules during the first quarter of which 7.7 GW were
in distributed generation projects and 2.0 GW were in traditional
solar utilities installations. Notably, there is a 217%
year-over-year increase in China's
DG installations. China's National
Energy Administration also stressed the importance of the Top
Runner Program, PV Poverty Alleviation Program, and the sustainable
growth of DG projects, which are expected to continue to drive
domestic PV demand. In particular, China recently announced that for the third
phase of its Top Runner Program, approximately greater than 80%
will utilize mono-crystalline-solar-based technologies, which we
believe will create a solid foundation for the sustainable
long-term demand for our high-purity mono-crystalline-grade
polysilicon products."
"With rapidly growing customer demand for our products, we are
accelerating the pace of our Phase 3B
capacity expansion project and now expect to complete construction
and installation as well as begin pilot production by the end of
2018. This will allow us to further reduce costs and ramp up to
full production capacity of 30,000 MT
during the first quarter of 2019."
"We are also pleased to announce the next stage in our capacity
expansion plan which compliments Phase 3B. Phase 4A will increase our annual polysilicon
capacity by 35,000 MT bringing total
annual capacity to 65,000 MT by the
first quarter of 2020. Design and construction of the new
production facility will begin in May
2018 with pilot production expected to begin during the
fourth quarter of 2019 before ramping up to full 35,000 MT annual production capacity in the first
quarter of 2020. The entirety of our Phase 4 expansion plan will
expand our manufacturing capacity by a total of 70,000 MT over two phases, Phase 4A and 4B, which will each consist of 35,000 MT of expanded manufacturing capacity. Phase
4A is an important milestone in our long-term expansion plan to
meet surging market demand. This new facility will feature
state-of-the-art equipment and technology and produce ultra-high
purity mono-crystalline-grade polysilicon, which is in strong
demand with only a very few Chinese manufacturers who are able to
produce. This additional capacity will improve manufacturing
efficiency and is expected to further reduce costs by approximately
US$1.70 per kilogram from current
levels. Capital expenditures for this facility expected to be at
around US$14.0-15.0 per
kilogram."
"We continue to focus on improving manufacturing efficiency and
developing additional technological improvements to further reduce
costs, especially when it comes to our two biggest polysilicon
manufacturing cost components, unit electricity consumption and
unit silicon metal consumption. We made significant progress during
the quarter by reducing unit electricity consumption per kilogram
of polysilicon produced by roughly 10% year-over-year and unit
silicon metal consumption by approximately 5% year-over-year."
"I am pleased with our strong start to the year and believe the
US$110 million follow-on offering we
completed last month demonstrates the market's confidence in our
strategy, deeply experienced management team, and the sustainable
long-term growth of the industry. As our newly added capacity comes
on line allowing us to meet growing demand and our competitive
advantages in polysilicon quality and production costs bear more
fruit, we will be ideally positioned to solidify our position as
the polysilicon manufacturing leader."
Outlook and guidance
The Company expects to produce approximately 5,600 MT to 5,800 MT
of polysilicon and sell approximately 5,300
MT to 5,500 MT of polysilicon
to external customers during the second quarter of 2018. The above
external sales guidance excludes shipments of polysilicon to be
used internally by the Company's Chongqing solar wafer facility, which utilizes
polysilicon for its wafer manufacturing operation. Wafer sales
volume is expected to be approximately 15.0 million to 20.0 million
pieces for the second quarter of 2018. For the full year 2018, the
Company expects to produce approximately 22,000 to 23,000 MT of polysilicon, inclusive of the impact of
our 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
change. 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.
First Quarter 2018 Results
Revenues
Revenues were $103.3 million,
compared to $103.7 in the fourth
quarter of 2017 and $83.8 million in
the first quarter of 2017.
Revenues from polysilicon sales to external customers were
$95.6 million, compared to
$89.8 million in the fourth quarter
of 2017 and $70.4 million in the
first quarter of 2017. External polysilicon sales volume was
5,411 MT, compared to 4,730 MT in the fourth quarter of 2017, and
4,223 MT in the first quarter of
2017. The sequential increase in revenues from polysilicon was
primarily due to higher polysilicon sales volumes which were
partially offset by lower ASPs.
Revenues from wafer sales were $7.6
million, compared to $13.9
million in the fourth quarter of 2017 and $13.4 million in the first quarter of 2017. Wafer
sales volume was 13.3 million pieces, compared to 22.3 million
pieces in the fourth quarter of 2017 and 22.4 million pieces in the
first quarter of 2017. The sequential decrease in revenues from
wafer sales was primarily due to lower sales volumes and a decrease
in ASPs.
On January 1, 2018, the Company
adopted Accounting Standards Update 2014-09, Revenue from Contracts
with Customers (ASC 606) on a full retrospective basis. The
adoption has no impact on the Company's financial positions,
results of operations or cash flows.
Gross profit and margin
Gross profit was approximately $46.2
million, compared to $46.9
million in the fourth quarter of 2017 and $35.9 million in the first quarter of 2017.
Non-GAAP gross profit, which excludes costs related to the
non-operational polysilicon assets in Chongqing, was approximately $46.6 million, compared to $47.3 million in the fourth quarter of 2017 and
$36.9 million in the first quarter of
2017.
Gross margin was 44.8%, compared to 45.2% in the fourth quarter
of 2017 and 42.8% in the first quarter of 2017. The sequential
decrease was primarily due a decrease in ASPs which were partially
offset by a decrease in average polysilicon production cost.
In the first quarter of 2018, total costs related to the
non-operational Chongqing
polysilicon assets including depreciation were $0.4 million, compared to $0.4 million in the fourth quarter of 2017 and
$1.0 million in the first quarter of
2017. Excluding such costs, non-GAAP gross margin was approximately
45.2%, compared to 45.6% in the fourth quarter of 2017 and 44.0% in
the first quarter of 2017.
Selling, general and administrative expenses
Selling, general and administrative expenses were $4.8 million, compared to $4.7 million in the fourth quarter of 2017 and
$4.1 million in the first quarter of
2017.
Research and development expenses
Research and development (R&D) expenses were approximately
$0.1 million, compared to
$0.1 million in the fourth quarter of
2017 and $0.4 million in the first
quarter of 2017. Research and development expenses can vary from
period to period and reflect R&D activities that took place
during the quarter.
Other operating income
Other operating income was $0.4
million, compared to $4.4
million in the fourth quarter of 2017 and $0.8 million in the first quarter of 2017. Other
operating income was mainly composed of unrestricted cash
incentives that the Company received from local government
authorities, the amount of which varies from period to period.
Operating income and margin
As a result of the foregoing, operating income was $41.7 million, compared to $43.6 million in the fourth quarter of 2017 and
$32.2 million in the first quarter of
2017.
Operating margin was 40.4%, compared to 42.0% in the fourth
quarter of 2017 and 38.4% in the first quarter of 2017.
Interest expense
Interest expense was $4.1 million,
compared to $4.1 million in the
fourth quarter of 2017 and $4.3
million in the first quarter of 2017.
EBITDA
EBITDA was $51.7 million, compared
to $53.6 million in the fourth
quarter of 2017 and $41.7 million in
the first quarter of 2017. EBITDA margin was 50.0%, compared to
51.7% in the fourth quarter of 2017 and 49.8% in the first quarter
of 2017.
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 $31.6
million, compared to $33.7
million in the fourth quarter of 2017 and $22.9 million in the first quarter of 2017.
Earnings per basic ADS were $2.91,
compared to $3.16 in the fourth
quarter of 2017 and $2.18 in the
first quarter of 2017.
Financial Condition
As of March 31, 2018, the Company
had $83.0 million in cash, cash
equivalents and restricted cash, compared to $72.7 million as of December 31, 2017 and $61.2 million as of March
31, 2017. As of March, 2018, the accounts receivable balance
was $2.0 million, compared to
$3.0 million as of December 31, 2017 and $13.1 million as of March
31, 2017. As of March 31,
2018, the notes receivable balance was $49.7 million, compared to $27.3 million as of December 31, 2017 and $11.7 million as of March
31, 2017. As of March 31,
2018, total borrowings were $217.8
million, of which $108.4
million were long-term borrowings, compared to total
borrowings of $212.9 million,
including $113.6 million long-term
borrowings, as of December 31, 2017
and total borrowings of $236.0
million, including $129.2
million long-term borrowings, as of March 31, 2017.
On April 16, 2018, the Company
issued 2,000,000 ADSs, representing
50,000,000 ordinary shares, through a follow-on offering, at
$55.00 per ADS. The proceeds, net of
underwriting commission, were $105.1
million.
Cash Flows
For the three months ended March 31,
2018, net cash provided by operating activities was
$22.0 million, compared to
$28.6 million in the same period of
2017. The decrease was primarily due to increased notes receivable
balance as of March 31, 2018.
For the three months ended March 31,
2018, net cash used in investing activities was $11.8 million, compared to $16.0 million in the same period of 2017. The net
cash used in investing activities in Q1 2018 and Q1 2017 was
primarily related to the capital expenditure on the Xinjiang
polysilicon projects.
For the three months ended March 31,
2018, net cash used in financing activities was $2.4 million, compared to net cash provided by
financing activities of $16.5 million
in the same period of 2017. Net cash used in financing activities
in Q1 2018 and Q1 2017 primarily consists of repayment of related
party loans and bank borrowings.
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 non-GAAP
gross profit and non-GAAP gross margin; earnings before interest,
taxes, Depreciation & Amortization ("EBITDA") and EBITDA
margin; adjusted net income attributable to Daqo New Energy Corp.
shareholders and adjusted earnings per basic ADS. 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, 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.
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 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 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.
Non-GAAP gross profit and non-GAAP gross margin includes
adjustments for costs related to the non-operational polysilicon
assets in Chongqing. Such costs
mainly consist of non-cash depreciation costs, as well as utilities
and maintenance costs associated with the temporarily idle
polysilicon machinery and equipment, which will be or are in the
process of being relocated to the Company's Xinjiang polysilicon
manufacturing facility. The Company expects a majority of these
costs, such as depreciation, will continue to occur as part of the
production cost at the Xinjiang facilities subsequent to the
completion of the relocation plan. Once these assets are placed
back in service, the Company will remove this adjustment from the
non-GAAP reconciling item. The Company also 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 ADS
exclude costs related to the non-operational polysilicon assets in
Chongqing as described above.
Adjusted net income attributable to Daqo New Energy Corp.
shareholders and adjusted earnings per basic ADS also exclude costs
related to share-based compensation. Share-based compensation is a
non-cash expense that varies from period to period. As a result,
management excludes this item from its internal operating forecasts
and models. 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
May 8, 2018.
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
ask to be joined into the Daqo New Energy Corp. call.
|
You can also listen to the conference call via Webcast through
the URL: http://mms.prnasia.com/dq/20180508/default.aspx
A replay of the call will be available 1 hour after the end of
the conference through May 15,
2018.
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:
|
10119885
|
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 2008, the
Company is one of the world's lowest cost producers of high-purity
polysilicon and solar wafers. Daqo primarily sells its products to
solar cell and solar module manufacturers across the globe and is
also a leading supplier of ultra-high-quality polysilicon for the
production of high-efficiency mono-crystalline solar
products. Daqo's highly-efficient and technically advanced
manufacturing facility in Xinjiang Province currently has annual
polysilicon production capacity of 18,000 metric tons, and the
Company is undergoing capacity expansion to reach annual
polysilicon production capacity of 30,000 metric tons by the end of
2018. The Company also operates a solar wafer manufacturing
facility in Chongqing,
China.
For more information, please visit http://
http://daqo.gotoip1.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 second quarter of 2018 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; our
ability to significantly expand our polysilicon production capacity
and output; the reduction in or elimination of government subsidies
and economic incentives for solar energy applications; and our
ability to lower our production costs. Further information
regarding these and other risks is included in the reports or
documents we have filed with, or furnished to, the Securities and
Exchange Commission. Daqo New Energy does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and Daqo New Energy undertakes no duty to update
such information, 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
|
|
|
Mar 31,
2018
|
|
Dec 31,
2017
|
|
Mar 31,
2017
|
|
|
|
|
|
|
|
Revenues
|
|
$103,274
|
|
$103,675
|
|
$83,808
|
Cost of
revenues
|
|
(57,052)
|
|
(56,782)
|
|
(47,914)
|
Gross
profit
|
|
46,222
|
|
46,893
|
|
35,894
|
Operating
expenses
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(4,806)
|
|
(4,681)
|
|
(4,060)
|
Research and
development expenses
|
|
(121)
|
|
(51)
|
|
(448)
|
Other operating
income
|
|
446
|
|
4,403
|
|
775
|
Impairment of
long-lived assets
|
|
-
|
|
(2,988)
|
|
-
|
Total operating
expenses
|
|
(4,481)
|
|
(3,317)
|
|
(3,733)
|
Income from
operations
|
|
41,741
|
|
43,576
|
|
32,161
|
Interest
expense
|
|
(4,054)
|
|
(4,056)
|
|
(4,344)
|
Interest
income
|
|
156
|
|
185
|
|
75
|
Foreign exchange gain
(loss)
|
|
(6)
|
|
(8)
|
|
1
|
Income before income
taxes
|
|
37,837
|
|
39,697
|
|
27,893
|
Income tax
expense
|
|
(5,864)
|
|
(5,605)
|
|
(4,742)
|
Net income
|
|
31,973
|
|
34,092
|
|
23,151
|
Net income
attributable to non-controlling interest
|
|
339
|
|
380
|
|
257
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
$31,634
|
|
$33,712
|
|
$22,894
|
|
|
|
|
|
|
|
Net income
|
|
31,973
|
|
34,092
|
|
23,151
|
Other comprehensive
income:
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
14,826
|
|
8,904
|
|
2,166
|
Total other
comprehensive income
|
|
14,826
|
|
8,904
|
|
2,166
|
Comprehensive
income
|
|
46,799
|
|
42,996
|
|
25,317
|
Comprehensive income
attributable to non-controlling interest
|
|
446
|
|
444
|
|
270
|
Comprehensive income
attributable to Daqo New Energy
Corp. shareholders
|
|
$46,353
|
|
$42,552
|
|
$25,047
|
|
|
|
|
|
|
|
Income per
ADS
|
|
|
|
|
|
|
Basic
|
|
2.91
|
|
3.16
|
|
2.18
|
Diluted
|
|
2.79
|
|
3.02
|
|
2.14
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
Basic
|
|
10,853,166
|
|
10,680,120
|
|
10,519,425
|
Diluted
|
|
11,341,860
|
|
11,170,576
|
|
10,691,911
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheet
|
(US dollars in
thousands)
|
|
|
|
Mar 31,
2018
|
|
Dec 31,
2017
|
|
Mar 31,
2017
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$62,386
|
|
$60,677
|
|
$44,651
|
Restricted
cash
|
|
20,592
|
|
11,990
|
|
16,596
|
Accounts receivable,
net
|
|
2,035
|
|
2,972
|
|
13,121
|
Notes
receivable
|
|
49,723
|
|
27,286
|
|
11,702
|
Prepaid expenses and
other current assets
|
|
8,278
|
|
8,183
|
|
6,069
|
Advances to
suppliers
|
|
2,054
|
|
2,656
|
|
1,283
|
Inventories
|
|
19,502
|
|
19,603
|
|
16,268
|
Amount due from related
parties
|
|
4,964
|
|
8,997
|
|
345
|
Total current
assets
|
|
169,534
|
|
142,364
|
|
110,035
|
Property, plant and
equipment, net
|
|
601,758
|
|
579,129
|
|
559,900
|
Prepaid land use
right
|
|
26,686
|
|
25,889
|
|
24,871
|
Deferred tax
assets
|
|
740
|
|
714
|
|
591
|
Investment accounted
for under cost-method
|
|
712
|
|
687
|
|
586
|
TOTAL
ASSETS
|
|
799,430
|
|
748,783
|
|
695,983
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term borrowings,
including current portion of
long-term borrowings
|
|
109,485
|
|
99,300
|
|
106,842
|
Accounts
payable
|
|
21,854
|
|
22,406
|
|
23,130
|
Notes
payable
|
|
31,826
|
|
16,877
|
|
23,749
|
Advances from
customers
|
|
9,664
|
|
16,691
|
|
1,025
|
Payables for purchases
of property, plant and
equipment
|
|
17,996
|
|
25,144
|
|
39,367
|
Accrued expenses and
other current liabilities
|
|
14,471
|
|
16,134
|
|
11,417
|
Amount due to related
parties
|
|
7,078
|
|
6,770
|
|
32,925
|
Income tax
payable
|
|
11,650
|
|
13,191
|
|
7,095
|
Total current
liabilities
|
|
224,024
|
|
216,513
|
|
245,550
|
Long-term
borrowings
|
|
108,360
|
|
113,588
|
|
129,198
|
Other long-term
liabilities
|
|
24,861
|
|
24,154
|
|
23,304
|
TOTAL
LIABILITIES
|
|
357,245
|
|
354,255
|
|
398,052
|
EQUITY:
|
|
|
|
|
|
|
Ordinary
shares
|
|
27
|
|
27
|
|
27
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
Additional paid-in
capital
|
|
247,935
|
|
247,077
|
|
240,996
|
Accumulated
gains
|
|
164,907
|
|
133,274
|
|
63,326
|
Accumulated other
comprehensive income
|
|
27,826
|
|
13,107
|
|
(6,569)
|
Total Daqo New Energy
Corp.'s shareholders' equity
|
|
438,946
|
|
391,736
|
|
296,031
|
Non-controlling
interest
|
|
3,239
|
|
2,792
|
|
1,900
|
Total
equity
|
|
442,185
|
|
394,528
|
|
297,931
|
TOTAL LIABILITIES
& EQUITY
|
|
799,430
|
|
748,783
|
|
695,983
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
|
For the three months
ended March 31,
|
|
|
2018
|
|
2017
|
Operating
Activities:
|
|
|
|
|
Net income
|
|
$31,973
|
|
$23,150
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Share-based compensation
|
|
859
|
|
882
|
Depreciation of property, plant and equipment
|
|
9,785
|
|
9,587
|
Disposal
of assets loss
|
|
-
|
|
23
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
1,032
|
|
(8,245)
|
Notes
receivable
|
|
(21,154)
|
|
1,430
|
Prepaid
expenses and other current assets
|
|
98
|
|
2,024
|
Advances
to suppliers
|
|
690
|
|
454
|
Inventories
|
|
811
|
|
(3,888)
|
Amount due
from related parties
|
|
5,056
|
|
1,203
|
Amount due
to related parties
|
|
271
|
|
411
|
Prepaid
land use rights
|
|
152
|
|
140
|
Accounts
payable
|
|
(1,354)
|
|
4,233
|
Notes
payable
|
|
5,691
|
|
(823)
|
Accrued
expenses and other current liabilities
|
|
(2,227)
|
|
3,029
|
Income tax
payable
|
|
(2,000)
|
|
1,752
|
Advances
from customers
|
|
(7,540)
|
|
(6,556)
|
Deferred
government subsidies
|
|
(178)
|
|
(165)
|
Net cash provided by
operating activities
|
|
21,965
|
|
28,641
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(11,832)
|
|
(15,989)
|
Net cash used in
investing activities
|
|
(11,832)
|
|
(15,989)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from related
parties loans
|
|
17,900
|
|
32,824
|
Repayment of related
parties loans
|
|
(17,601)
|
|
(32,687)
|
Proceeds from bank
borrowings
|
|
13,368
|
|
30,856
|
Repayment of bank
borrowings
|
|
(16,199)
|
|
(14,517)
|
Cash received from
exercise of options
|
|
104
|
|
3
|
Net cash (used in)
provided by financing activities
|
|
(2,428)
|
|
16,479
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
2,606
|
|
236
|
Net increase in cash,
cash equivalents and restricted cash
|
|
10,311
|
|
29,367
|
Cash, cash
equivalents and restricted cash at the beginning of the
year
|
|
72,667
|
|
31,880
|
Cash, cash
equivalents and restricted cash at the end of the year
|
|
82,978
|
|
61,247
|
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.
|
|
Mar 31,
2018
|
|
Mar 31,
2017
|
Cash and cash
equivalents
|
|
$62,386
|
|
$44,651
|
Restricted
cash
|
|
20,592
|
|
16,596
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
$82,978
|
|
$61,247
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
Three months
Ended
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Mar. 31,
2017
|
Gross
profit
|
46,222
|
|
46,893
|
|
35,894
|
Costs related to the
non-operational Chongqing
polysilicon operations
|
389
|
|
443
|
|
1,003
|
Non-GAAP gross
profit
|
46,611
|
|
47,336
|
|
36,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
Ended
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Mar. 31,
2017
|
Gross
margin
|
44.8%
|
|
45.2%
|
|
42.8%
|
Costs related to the
non-operational Chongqing
polysilicon operations (proportion of revenue)
|
0.4%
|
|
0.4%
|
|
1.2%
|
Non-GAAP gross
margin
|
45.2%
|
|
45.6%
|
|
44.0%
|
|
|
|
|
|
Three months
Ended
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Mar. 31,
2017
|
Net
income
|
31,973
|
|
34,092
|
|
23,151
|
Income tax
expense
|
5,864
|
|
5,605
|
|
4,742
|
Interest
expense
|
4,054
|
|
4,056
|
|
4,344
|
Interest
income
|
(156)
|
|
(185)
|
|
(75)
|
Depreciation &
Amortization
|
9,937
|
|
10,044
|
|
9,587
|
EBITDA
(non-GAAP)
|
51,672
|
|
53,612
|
|
41,749
|
EBIDTA margin
(non-GAAP)
|
50.0%
|
|
51.7%
|
|
49.8%
|
|
|
|
|
|
|
|
|
|
Three months
Ended
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Mar. 31,
2017
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
31,634
|
|
33,712
|
|
22,894
|
Costs related to the
non-operational Chongqing
polysilicon operations
|
389
|
|
443
|
|
1,003
|
Share-based
compensation
|
859
|
|
1,170
|
|
882
|
Adjusted net
income (non-GAAP) attributable to
Daqo New Energy Corp. shareholders
|
32,882
|
|
35,325
|
|
24,779
|
Adjusted earnings
per basic ADS (non-GAAP)
|
$3.03
|
|
$3.31
|
|
$2.36
|
Adjusted earnings
per diluted ADS (non-GAAP)
|
$2.90
|
|
$3.16
|
|
$2.32
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations
Phone: +86-187-1658-5553
dqir@daqo.com
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-first-quarter-2018-results-300644368.html
SOURCE Daqo New Energy Corp.