SHIHEZI, China, May 20, 2020 /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 2020.
First Quarter 2020 Financial and Operating Highlights
- Polysilicon production volume was 19,777 MT in Q1 2020,
compared to 16,204 MT in Q4 2019
- Polysilicon sales volume was 19,101
MT in Q1 2020, compared to 13,291 MT in Q4 2019
- Polysilicon average total production cost(1) was
$5.86/kg in Q1 2020, compared to
$6.38/kg in Q4 2019
- Polysilicon average cash cost(1) was $5.01/kg in Q1 2020, compared to $5.47/kg in Q4 2019
- Polysilicon average selling price (ASP) was $8.79/kg in Q1 2020, compared to $8.77/kg in Q4 2019
- Revenue from continuing operations was $168.8 million in Q1 2020, compared to
$118.9 million in Q4 2019
- Gross profit from continuing operations was $56.6 million in Q1 2020, compared to
$35.1 million in Q4 2019. Gross
margin from continuing operations was 33.5% in Q1 2020, compared to
29.5% in Q4 2019
- EBITDA (non-GAAP)(2) from continuing operations was
$63.1 million in Q1 2020, compared to
$45.4 million in Q4 2019. EBITDA
margin (non-GAAP)(2) from continuing operations was
37.4% in Q1 2020, compared to 38.2% in Q4 2019
- Net income attributable to Daqo New Energy Corp. shareholders
was $33.2 million in Q1 2020,
compared to $20.1 million in Q4
2019
- Earnings per basic American Depositary Share (ADS) was
$2.37 in Q1 2020, compared to
$1.45 in Q4 2019
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $37.7
million in Q1 2020, compared to $24.5
million in Q4 2019
- Adjusted earnings per basic ADS (non-GAAP)(2) was
$2.69 in Q1 2020, compared to
$1.77 in Q4 2019
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Mar 31,
2020
|
Dec 31,
2019
|
Mar 31,
2019
|
Revenues
|
168.8
|
118.9
|
81.2
|
Gross
profit
|
56.6
|
35.1
|
18.3
|
Gross
margin
|
33.5%
|
29.5%
|
22.6%
|
Operating
income
|
45.8
|
30.1
|
9.1
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
33.2
|
20.1
|
6.6
|
Earnings per basic
ADS ($ per ADS)
|
2.37
|
1.45
|
0.50
|
Adjusted net income
(non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
|
37.7
|
24.5
|
11.1
|
Adjusted earnings per
basic ADS (non-GAAP)(2)
($ per ADS)
|
2.69
|
1.77
|
0.83
|
EBITDA
(non-GAAP)(2) from continuing operations
|
63.1
|
45.4
|
19.9
|
EBITDA margin
(non-GAAP)(2) from continuing
operations
|
37.4%
|
38.2%
|
24.5%
|
Polysilicon sales
volume (MT)
|
19,101
|
13,291
|
8,450
|
Polysilicon average
total production cost ($/kg)(1)
|
5.86
|
6.38
|
7.42
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
5.01
|
5.47
|
6.20
|
Notes:
|
(1) 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 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 from continuing operations, EBITDA margin
from continuing operations, 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
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are
pleased to report an outstanding quarter with excellent financial
and operational results. We operated at full capacity during the
quarter and were able to produce and sell record-high volume of
19,777 MT and 19,101 MT of
polysilicon, respectively. Thanks to growing economies of scale,
savings on energy consumption and improved operational efficiency,
our total production cost decreased to $5.86/kg during the quarter, a decrease of 8%
from $6.38/kg in Q4 2019. Our cash
cost during the quarter also decreased to $5.01/kg, down from $5.47/kg in Q4 2019. In addition, we continued to
make improvements in quality and were able to sell approximately
95% of our products to mono wafer customers. All in all, we are
very proud of the achievements we made in expanding production
volume, optimizing our cost structure and enhancing quality within
only two quarters following the start of Phase 4A pilot production.
Our exceptional results this quarter reflect the strong
capabilities of our Xinjiang facilities at full production
following the completion of the Phase 4A expansion project. We
believe this also demonstrates our extensive experience and
expertise in polysilicon manufacturing, and further solidifies our
position as a global leader in the industry."
"Despite the challenging market environment, we successfully
expanded our gross margin by further optimizing our cost structure
during the quarter. Gross margin during the quarter was 33.5%
compared with 29.5% in the fourth quarter of 2019. An expanding
gross margin and increasing sales volume resulted in $63.1 million in EBITDA, up 39% sequentially, and
$37.7 million in adjusted net income,
up 53.5% sequentially. I would like to thank our entire team for
their contribution to this quarter's strong results given all the
difficulties in securing raw materials, managing on-site
operations, and facilitating logistics during lockdown that
followed the outbreak of COVID-19 in China."
"Towards the end of the first quarter, the spread of COVID-19
globally and related lockdowns, particularly in the U.S.,
Europe and certain other emerging
markets, resulted in significant disruptions to demand for solar PV
products. This has created short-term market uncertainty and
volatility across the solar PV industry during the second quarter.
Fortunately, the spread of COVID-19 has begun to ease and things
are gradually returning to normal across all walks of life,
particularly in China. We expect
to see some rush orders from solar PV developers in China for legacy projects delayed from last
year in order to meet the grid connection deadline set for the end
of June. However, a recovery of demand from markets outside of
China is critical going forward as
overseas markets currently account for approximately 75% of total
global solar end market demand. With many economies beginning to
reopen, we expect to see a gradual recovery of solar PV demand
in the third quarter. We are
confident that the long-term solar PV growth prospects remain
intact despite the near-term challenging market environment as
solar PV energy continues to attract investors seeking to benefit
from lower costs and interest rates."
"We are currently conducting scheduled annual maintenance for our Xinjiang facilities. As
such, we expect to produce 15,500 to 16,500
MT of polysilicon during the second quarter. Annual
production volume for 2020 is expected to be 73,000 to
75,000 MT. We expect to see global
solar markets recover as the impact from COVID-19 fades over the
next two or three months. We are confident in our ability to
navigate this challenging environment leveraging our competitive
advantages in product quality and cost structure."
Outlook and guidance
The Company expects to produce approximately 15,500MT to
16,500MT of polysilicon and sell approximately
14,500MT to 15,500MT of polysilicon to external customers
during the second quarter of 2020. For the full year of 2020, the
Company expects to produce approximately 73,000 to 75,000 MT of polysilicon, 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.
First Quarter 2020 Results
Revenues
Revenues were $168.8 million,
compared to $118.9 million in the
fourth quarter of 2019 and $81.2
million in the first quarter of 2019. The increase in
revenues was primarily due to higher polysilicon sales volume.
Gross profit and margin
Gross profit was $56.6 million,
compared to $35.1 million in the
fourth quarter of 2019 and $18.3 million in the first quarter of 2019.
Gross margin was 33.5%, compared to 29.5% in the fourth quarter of
2019 and 22.6% in the first quarter of 2019. The increase in gross
margin was primarily due to lower production costs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $8.9 million, compared to $8.5 million in the fourth quarter of 2019 and
$7.9 million in the first quarter of
2019. SG&A expenses during the quarter included $4.0 million in non-cash share-based compensation
costs related to the Company's share incentive plan.
Research and development expenses
Research and development (R&D) expenses were $1.7 million, compared to $1.7 million in the fourth quarter of 2019 and
$1.3 million in the first quarter of
2019. 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
$45.8 million, compared to
$30.1 million in the fourth quarter
of 2019 and $9.1 million in the first
quarter of 2019.Operating margin was 27.1%, compared to 25.3% in
the fourth quarter of 2019 and 11.3% in the first quarter of
2019.
Interest expense
Interest expense was $6.3 million,
compared to $3.9 million in the
fourth quarter of 2019 and $2.0
million in the first quarter of 2019.
EBITDA (non-GAAP)
EBITDA (non-GAAP) from continuing operations was $63.1 million, compared to $45.4 million in the fourth quarter of 2019 and
$19.9 million in the first quarter of
2019. EBITDA margin (non-GAAP) was 37.4%, compared to 38.2% in the
fourth quarter of 2019 and 24.5% in the first quarter of 2019.
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 $33.2
million in the first quarter of 2020, compared to
$20.1 million in the fourth quarter
of 2019 and $6.6 million in the first
quarter of 2019.
Earnings per basic ADS was $2.37
in the first quarter of 2020, compared to $1.45 in the fourth quarter of 2019, and
$0.50 in the first quarter of
2019.
Financial Condition
As of March 31, 2020, the Company
had $120.8 million in cash and cash
equivalents and restricted cash, compared to $114.4 million as of December 31, 2019 and $113.7 million as of March
31, 2019. As of March 31,
2020, the notes receivable balance was $4.4 million, compared to $5.6 million as of December 31, 2019 and $0.7
million as of March 31, 2019.
As of March 31, 2020, total
borrowings were $265.6 million, of
which $149.0 million were long-term
borrowings, compared to total borrowings of $280.1 million, including $151.5 million long-term borrowings, as of
December 31, 2019 and total
borrowings of $193.0 million,
including $149.7 million long-term
borrowings, as of March 31, 2019.
Cash Flows
For the three months ended March 31,
2020, net cash provided by operating activities was
$31.1 million, compared to
$48.5 million in the same period of
2019.
For the three months ended March 31,
2020, net cash used in investing activities was $12.9 million, compared to $38.6 million in the same period of 2019. The net
cash used in investing activities in 2020 and 2019 was primarily
related to the capital expenditures on Xinjiang Phase 3B and 4A polysilicon projects.
For the three months ended March 31,
2020, net cash used in financing activities was $10.0 million, compared to net cash provided by
financing activities of $7.2 million
in the same period of 2019.
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 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, and the Company had removed this adjustment from the
non-GAAP reconciling item since the fourth quarter of 2018, because
as of the end of the third quarter of 2018, all of the polysilicon
machinery and equipment had been either relocated to Xinjiang,
disposed, or planned to be disposed of in due course. Adjusted net
income attributable to Daqo New Energy Corp. shareholders and
adjusted earnings per basic and diluted 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,
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
May 20, 2020. (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/dq200520.html
A replay of the call will be available 1 hour after the end of
the conference through May 27,
2020.
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:
|
10144142
|
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. Daqo's
highly-efficient and technically advanced manufacturing facility in
Xinjiang, China currently has a
nameplate annual polysilicon production capacity of 70,000 metric
tons.
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 and the full year of 2020 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
|
|
|
Mar 31,
2020
|
|
Dec 31,
2019
|
|
Mar 31,
2019
|
|
|
|
|
|
|
|
Revenues
|
|
$168,831
|
|
$118,918
|
|
$81,204
|
Cost of
revenues
|
|
(112,277)
|
|
(83,800)
|
|
(62,863)
|
Gross
profit
|
|
56,554
|
|
35,118
|
|
18,341
|
Operating
expenses
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(8,892)
|
|
(8,537)
|
|
(7,935)
|
Research and
development expenses
|
|
(1,654)
|
|
(1,656)
|
|
(1,297)
|
Other operating
income
|
|
(215)
|
|
5,164
|
|
3
|
Total operating
expenses
|
|
(10,761)
|
|
(5,029)
|
|
(9,229)
|
Income from
operations
|
|
45,793
|
|
30,089
|
|
9,112
|
Interest
expense
|
|
(6,287)
|
|
(3,936)
|
|
(2,021)
|
Interest
income
|
|
151
|
|
208
|
|
324
|
Foreign exchange gain /
(loss)
|
|
-
|
|
4
|
|
(189)
|
Income before income
taxes
|
|
39,657
|
|
26,365
|
|
7,226
|
Income tax
expense
|
|
(6,344)
|
|
(5,972)
|
|
(1,429)
|
Net income from
continuing operations
|
|
33,313
|
|
20,393
|
|
5,797
|
Net (loss) / income
from discontinued operations
|
|
(86)
|
|
(306)
|
|
845
|
Net income
|
|
33,227
|
|
20,087
|
|
6,642
|
Net (loss) / income
attributable to non-controlling interest
|
|
(3)
|
|
(1)
|
|
-
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
$33,230
|
|
$20,088
|
|
$6,642
|
|
|
|
|
|
|
|
Net income
|
|
33,227
|
|
20,087
|
|
6,642
|
Other comprehensive
income:
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(9,819)
|
|
13,892
|
|
13,014
|
Total other
comprehensive (loss) / income /
|
|
(9,819)
|
|
13,892
|
|
13,014
|
Comprehensive
income
|
|
23,408
|
|
33,979
|
|
19,656
|
Comprehensive income
attributable to non-controlling
interest
|
|
(9)
|
|
2
|
|
-
|
Comprehensive income
attributable to Daqo New Energy
Corp. shareholders
|
|
$23,417
|
|
$33,977
|
|
$19,656
|
|
|
|
|
|
|
|
Earnings / (Loss) per
ADS
|
|
|
|
|
|
|
-Continuing
operations
|
|
2.38
|
|
1.47
|
|
0.44
|
-Discontinued
operations
|
|
(0.01)
|
|
(0.02)
|
|
0.06
|
Basic
|
|
2.37
|
|
1.45
|
|
0.50
|
|
|
|
|
|
|
|
-Continuing
operations
|
|
2.28
|
|
1.43
|
|
0.42
|
-Discontinued
operations
|
|
(0.01)
|
|
(0.02)
|
|
0.06
|
Diluted
|
|
2.27
|
|
1.41
|
|
0.48
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
Basic
|
|
13,991,847
|
|
13,837,250
|
|
13,360,729
|
Diluted
|
|
14,669,820
|
|
14,274,977
|
|
13,749,959
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
|
|
Mar 31,
2020
|
|
Dec 31,
2019
|
|
Mar 31,
2019
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$63,168
|
|
$51,840
|
|
$65,111
|
Restricted
cash
|
|
57,639
|
|
62,609
|
|
48,560
|
Accounts receivable,
net
|
|
213
|
|
13
|
|
2,204
|
Notes
receivable
|
|
4,402
|
|
5,644
|
|
714
|
Prepaid expenses and
other current assets
|
|
13,249
|
|
15,344
|
|
9,717
|
Advances to
suppliers
|
|
8,962
|
|
1,544
|
|
2,846
|
Inventories,
net
|
|
33,234
|
|
36,391
|
|
18,882
|
Amount due from related
parties
|
|
-
|
|
17
|
|
4,179
|
Current assets
associated with discontinued
operation
|
|
664
|
|
926
|
|
2,748
|
Total current
assets
|
|
181,531
|
|
174,328
|
|
154,961
|
Property, plant and
equipment, net
|
|
968,418
|
|
995,027
|
|
691,491
|
Prepaid land use
right
|
|
28,936
|
|
29,593
|
|
24,375
|
Deferred tax
assets
|
|
1,330
|
|
1,352
|
|
842
|
Investment in
affiliate
|
|
631
|
|
642
|
|
666
|
Operating lease
Right-of-use assets
|
|
173
|
|
197
|
|
-
|
Non-current asset
associated with discontinued
operation
|
|
197
|
|
217
|
|
51,727
|
TOTAL
ASSETS
|
|
1,181,216
|
|
1,201,356
|
|
924,062
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term borrowings,
including current
portion of long-term borrowings
|
|
116,602
|
|
128,612
|
|
43,210
|
Accounts
payable
|
|
17,716
|
|
12,713
|
|
9,926
|
Notes
payable
|
|
89,614
|
|
101,171
|
|
66,322
|
Advances from
customers-short term portion
|
|
11,640
|
|
33,028
|
|
9,658
|
Payables for purchases
of property, plant and
equipment
|
|
106,208
|
|
112,538
|
|
25,085
|
Accrued expenses and
other current liabilities
|
|
11,284
|
|
12,222
|
|
9,330
|
Amount due to related
parties
|
|
43,363
|
|
38,825
|
|
2,143
|
Income tax
payable
|
|
10,975
|
|
4,789
|
|
6,293
|
Lease liabilities -
short term portion
|
|
85
|
|
85
|
|
-
|
Current liabilities
associated with discontinued
operation
|
|
1,164
|
|
1,165
|
|
7,591
|
Total current
liabilities
|
|
408,651
|
|
445,148
|
|
179,558
|
Long-term
borrowings
|
|
149,018
|
|
151,518
|
|
149,744
|
Advance from customers
– long term portion
|
|
1,624
|
|
2,154
|
|
5,364
|
Amount due to related
parties - long term
portion
|
|
-
|
|
7,899
|
|
16,390
|
Other long-term
liabilities
|
|
20,536
|
|
21,034
|
|
21,848
|
Deferred tax
liabilities
|
|
6,271
|
|
6,368
|
|
1,174
|
Lease liabilities –
long term portion
|
|
77
|
|
77
|
|
-
|
Non-current liabilities
associated with
discontinued operation
|
|
-
|
|
-
|
|
721
|
TOTAL
LIABILITIES
|
|
586,177
|
|
634,198
|
|
374,799
|
EQUITY:
|
|
|
|
|
|
|
Ordinary
shares
|
|
35
|
|
35
|
|
34
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
Additional paid-in
capital
|
|
391,843
|
|
387,371
|
|
373,156
|
Accumulated
gains
|
|
234,152
|
|
200,922
|
|
178,040
|
Accumulated other
comprehensive loss
|
|
(29,750)
|
|
(19,937)
|
|
(218)
|
Total Daqo New Energy
Corp.'s shareholders'
equity
|
|
594,531
|
|
566,642
|
|
549,263
|
Non-controlling
interest
|
|
508
|
|
516
|
|
-
|
Total
equity
|
|
595,039
|
|
567,158
|
|
549,263
|
TOTAL LIABILITIES
& EQUITY
|
|
1,181,216
|
|
1,201,356
|
|
924,062
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
For the three months
ended March 31,
|
|
|
2020
|
|
2019
|
Operating
Activities:
|
|
|
|
|
Net income
|
|
$33,227
|
|
$6,642
|
Less: Income / (loss)
from discontinued operations, net of tax
|
|
(86)
|
|
845
|
Net income from
continuing operations
|
|
33,313
|
|
5,797
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Share-based compensation
|
|
4,461
|
|
4,474
|
Inventory
write-down
|
|
863
|
|
-
|
Depreciation of property, plant and equipment
|
|
17,084
|
|
8,755
|
Non-cash
lease expense
|
|
20
|
|
-
|
Amortization of prepaid land use right
|
|
171
|
|
-
|
Loss on
disposal of property, plant and equipment
|
|
301
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(203)
|
|
(989)
|
Notes
receivable
|
|
1,166
|
|
7,556
|
Prepaid
expenses and other current assets
|
|
1,876
|
|
872
|
Advances
to suppliers
|
|
(7,550)
|
|
562
|
Inventories
|
|
1,731
|
|
(3,031)
|
Prepaid
land use rights
|
|
-
|
|
143
|
Accounts
payable
|
|
5,287
|
|
499
|
Notes
payable
|
|
(11,277)
|
|
21,850
|
Accrued
expenses and other current liabilities
|
|
(747)
|
|
(320)
|
Income tax
payable
|
|
6,355
|
|
698
|
Advances
from customers
|
|
(21,644)
|
|
(2,880)
|
Amount due
to related parties
|
|
1
|
|
(16)
|
Deferred
tax liabilities
|
|
8
|
|
(40)
|
Deferred
government subsidies
|
|
(153)
|
|
(148)
|
Lease
liabilities
|
|
2
|
|
-
|
Net cash provided by
operating activities-continuing operations
|
|
31,065
|
|
43,782
|
Net cash provided by
operation activities-discontinued operations
|
|
15
|
|
4,699
|
Net cash provided by
operating activities
|
|
31,080
|
|
48,481
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(12,893)
|
|
(57,462)
|
Purchase of land use
right
|
|
-
|
|
(4,271)
|
Repayment of
short-term investment
|
|
-
|
|
22,224
|
Acquisition of
Xinjiang Daqo Investment
|
|
-
|
|
642
|
Net cash used in
investing activities-continuing operations
|
|
(12,893)
|
|
(38,867)
|
Net cash provided by
investing activities-discontinuing operations
|
|
(14)
|
|
232
|
Net cash used in
investing activities
|
|
(12,907)
|
|
(38,635)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from related
parties loans
|
|
-
|
|
1,482
|
Proceeds from bank
borrowings
|
|
-
|
|
51,856
|
Repayment of bank
borrowings
|
|
(10,030)
|
|
(34,788)
|
Cash received from
exercise of options
|
|
3
|
|
-
|
Net cash provided by
financing activities – continuing operations
|
|
|
|
|
Net cash used in
financing activities – discontinued operations
|
|
(10,027)
|
|
18,550
|
Net cash provided by
financing activities
|
|
(1)
|
|
(11,382)
|
Non-cash
transactions
|
|
(10,028)
|
|
7,168
|
Effect of exchange
rate changes
|
|
(1,997)
|
|
2,429
|
Net increase in cash,
cash equivalents and restricted cash
|
|
6,148
|
|
19,443
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
|
115,294
|
|
95,120
|
Cash, cash
equivalents and restricted cash at the end of the period
|
|
121,442
|
|
114,563
|
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,
2020
|
|
Mar 31,
2019
|
Cash and cash
equivalents
|
|
63,803
|
|
65,999
|
Restricted
cash
|
|
57,639
|
|
48,564
|
Total cash, cash equivalents, and restricted cash shown in the
statement of cash
flows
|
|
121,442
|
|
114,563
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
Three months
Ended
|
|
|
Mar 31,
2020
|
|
Dec 31,
2019
|
|
Mar 31,
2019
|
Net income from
continuing operations
|
|
33,313
|
|
20,393
|
|
5,797
|
Income tax
expense
|
|
6,344
|
|
5,972
|
|
1,429
|
Interest
expense
|
|
6,287
|
|
3,936
|
|
2,021
|
Interest
income
|
|
(151)
|
|
(208)
|
|
(324)
|
Depreciation &
amortization
|
|
17,275
|
|
15,281
|
|
11,010
|
EBITDA
(non-GAAP)
|
|
63,068
|
|
45,374
|
|
19,933
|
EBIDTA margin
(non-GAAP)
|
|
37.4%
|
|
38.2%
|
|
24.5%
|
|
Three months
Ended
|
|
|
Mar 31,
2020
|
|
Dec 31,
2019
|
|
Mar 31,
2019
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
|
33,230
|
|
20,088
|
|
6,642
|
Share-based
compensation
|
|
4,461
|
|
4,461
|
|
4,474
|
Adjusted net
income (non-GAAP)
attributable to Daqo New Energy Corp.
shareholders
|
|
37,691
|
|
24,549
|
|
11,116
|
Adjusted earnings
per basic ADS (non-
GAAP)
|
|
$2.69
|
|
$1.77
|
|
$0.83
|
Adjusted earnings
per diluted ADS (non-
GAAP)
|
|
$2.57
|
|
$1.72
|
|
$0.81
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@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:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-first-quarter-2020-results-301062392.html
SOURCE Daqo New Energy Corp.