SHANGHAI, Nov.
23, 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 third quarter of
2020.
Third Quarter 2020 Financial and Operating Highlights
- Polysilicon production volume was 18,406
MT in Q3 2020, compared to 18,097 MT in Q2 2020
- Polysilicon sales volume was 13,643
MT in Q3 2020, compared to 18,881 MT in Q2 2020
- Polysilicon average total production cost(1) was
$5.82/kg in Q3 2020, compared to
$5.79/kg in Q2 2020
- Polysilicon average cash cost(1) was $4.88/kg in Q3 2020, compared to $4.87/kg in Q2 2020
- Polysilicon average selling price (ASP) was $9.13/kg in Q3 2020, compared to $7.04/kg in Q2 2020
- Revenue was $125.5 million in Q3
2020, compared to $133.5 million in
Q2 2020
- Gross profit was $45.3 million in
Q3 2020, compared to $22.7 million in
Q2 2020. Gross margin was 36.0% in Q3 2020, compared to 17.0% in Q2
2020
- Net income attributable to Daqo New Energy Corp. shareholders
was $20.8 million in Q3 2020,
compared to $2.4 million in Q2
2020
- Earnings per basic American Depositary Share
(ADS)(3) was $0.29 in Q3
2020, compared to $0.03 in Q2
2020
- EBITDA (non-GAAP)(2) was $51.6 million in Q3 2020, compared to
$26.8 million in Q2 2020. EBITDA
margin (non-GAAP)(2) was 41.1% in Q3 2020, compared to
20.0% in Q2 2020
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $25.2 million in Q3 2020, compared to
$6.9 million in Q2 2020
- Adjusted earnings per basic ADS(3)
(non-GAAP)(2) was $0.35
in Q3 2020, compared to $0.10 in Q2
2020
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Sep 30,
2020
|
Jun 30,
2020
|
Sep 30,
2019
|
Revenues
|
125.5
|
133.5
|
83.9
|
Gross
profit
|
45.3
|
22.7
|
18.1
|
Gross
margin
|
36.0%
|
17.0%
|
21.5%
|
Income from
operations
|
33.3
|
10.8
|
8.8
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
20.8
|
2.4
|
5.0
|
Earnings per basic
ADS ($ per ADS)(3)
|
0.29
|
0.03
|
0.07
|
Adjusted net income
(non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
|
25.2
|
6.9
|
9.5
|
Adjusted earnings per
basic ADS (non-GAAP)(2) ($ per ADS)
(3)
|
0.35
|
0.10
|
0.14
|
EBITDA
(non-GAAP)(2)
|
51.6
|
26.8
|
19.7
|
EBITDA margin
(non-GAAP)(2)
|
41.1%
|
20.0%
|
23.5%
|
Polysilicon sales
volume (MT)
|
13,643
|
18,881
|
9,238
|
Polysilicon average
total production cost ($/kg)(1)
|
5.82
|
5.79
|
6.97
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
4.88
|
4.87
|
5.85
|
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, EBITDA margins, 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.
|
(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 has been retrospectively adjusted to
reflect the change for all periods presented.
|
Management Remarks
Mr.Longgen Zhang, CEO of Daqo New Energy, commented, "During the
third quarter of 2020, we successfully completed the annual
maintenance and several technology improvement projects at our
polysilicon manufacturing facilities. We resumed full production in August with
excellent operational results. For the third quarter, we produced
18,406 MT of polysilicon among which
approximately 97.7% was mono-grade. We continued our relentless
drive to lower production cost and reached a record-low cost in
Renminbi terms. During the third quarter, we completed our digital
transformation project, with a fully digitized manufacturing system
that allows us to continuously improve our process control and
analyze our manufacturing data so as to achieve better results in
system stability, manufacturing efficiencies, production cost and
product quality in future. As our facilities are now running with
increased efficiency, we expect to achieve a higher production
volume of approximately 19,500-20,500
MT in the fourth quarter, with a potential cost reduction by
approximately 3% as compared to the third quarter."
"During the quarter, polysilicon ASPs increased rapidly due to
the quick recovery in solar PV demand from both domestic and
foreign markets. Our ASP was $9.13/kg, a significant improvement from
approximately $7.04/kg in the second
quarter. With robust market demand for mono-grade polysilicon, we
expect our ASP to improve meaningfully in the fourth quarter as
compared to the third quarter. In recent weeks, because of strong
solar module and installation demand, we began to see solar glass
capacity shortage becoming a bottleneck for the solar industry and
limiting module production. We expect the shortage of solar glass
to ease over the coming months as additional solar glass capacity
comes online. The temporary constraint on the industry's
utilization rate will be removed which eventually will increase
demand for polysilicon."
"Solar is now becoming one of the most competitive sources of
energy, even compared to traditional power generation methods.
Globally, we are seeing strong momentum around the world in
adopting and implementing renewable energy policies that would
strongly benefit the solar end market. Last month, Mr. Xi Jinping,
President of China, announced
China's initiative to scale up the
national contributions to peak carbon dioxide emissions by 2030 and
achieve carbon neutrality by 2060. We believe favorable policies
benefiting solar will be implemented during the upcoming 14th
five-year-plan, driving a substantial increase in solar
installations in China. In
addition, a growing number of countries and regions, including the
most important economies in the world, have announced goals and
plans to reduce carbon emission and widely adopt renewable
energies. In particular, we are starting to see the trend of
utility-scale solar generation combined with power storage
providing base-load energy and replacing and displacing coal power
plants. We believe this is the beginning of a long term trend of
solar displacing traditional fossil-fuel based generation driven by
both economics and renewable energy mandates. We are strongly
committed to contributing our efforts as a raw material provider
for mainstream solar PV modules and are fully confident we will
benefit from this fast-growing market."
Outlook and guidance
The Company expects to produce approximately 19,500 to 20,500 MT
of polysilicon and sell approximately 20,500
MT to 21,500 MT of polysilicon
to external customers during the third quarter of 2020. For the
full year of 2020, the Company expects to produce approximately
75,800 MT to 76,800 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.
Third Quarter 2020 Results
Revenues
Revenues were $125.5 million,
compared to $133.5 million in the
second quarter of 2020 and $83.9
million in the third quarter of 2019. The sequential
decrease in revenues was primarily due to lower polysilicon sales
volume despite higher ASP.
Gross profit and margin
Gross profit was $45.3 million,
compared to $22.7 million in the
second quarter of 2020 and $18.1 million in the third quarter of 2019.
Gross margin was 36.0%, compared to 17.0% in the second quarter of
2020 and 21.5% in the third quarter of 2019. The increase in gross
margin was primarily due to improvement in production costs and
higher ASP.
Selling, general and administrative expenses
Selling, general and administrative expenses were $9.2 million, compared to $10.1 million in the second quarter of 2020 and
$8.2 million in the third 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 $2.0 million in the second quarter of 2020 and
$1.2 million in the third 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
$33.3 million, compared to
$10.8 million in the second quarter
of 2020 and $8.8 million in the third
quarter of 2019. Operating margin was 26.6%, compared to 8.1% in
the second quarter of 2020 and 10.5% in the third quarter of
2019.
Interest expense
Interest expense was $5.4 million,
compared to $6.7 million in the
second quarter of 2020 and $2.6
million in the third quarter of 2019.
EBITDA (non-GAAP)
EBITDA (non-GAAP) was $51.6
million, compared to $26.8
million in the second quarter of 2020 and $19.7 million in the third quarter of 2019.
EBITDA margin (non-GAAP) was 41.1%, compared to 20.0% in the second
quarter of 2020 and 23.5% in the third 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 $20.8 million in the third quarter of 2020,
compared to $2.4 million in the
second quarter of 2020 and $5.0
million in the third quarter of 2019.
Earnings per basic ADS was $0.29
in the third quarter of 2020, compared to $0.03 in the second quarter of 2020, and
$0.07 in the third quarter of
2019.
Financial Condition
As of September 30, 2020, the
Company had $109.8 million in cash
and cash equivalents and restricted cash, compared to $115.8 million as of June
30, 2020 and $68.2 million as
of September 30, 2019. As of
September 30, 2020, notes receivable balance was
$1.9 million, compared to
$8.2 million as of June 30, 2020 and $4.3
million as of September 30,
2019. As of September 30,
2020, total borrowings were $271.0
million, of which $140.0
million were long-term borrowings, compared to total
borrowings of $264.8 million,
including $116.9 million long-term
borrowings, as of June 30, 2020 and
total borrowings of $248.8 million,
including $163.5 million long-term
borrowings, as of September 30,
2019.
Cash Flows
For the nine months ended September 30,
2020, net cash provided by operating activities was
$71.1 million, compared to
$101.6 million in the same period of
2019.
For the nine months ended September 30,
2020, net cash used in investing activities was $80.3 million, compared to $202.3 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 our Phase
3B and 4A polysilicon projects.
For the nine months ended September 30,
2020, net cash provided by financing activities was
$1.1 million, compared to
$76.6 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 U.S. Eastern Time
on November 23, 2020 (9:00 PM Beijing / Hong
Kong time on the same day).
The dial-in details for the earnings conference call are as
follows:
Participant dial in
(U.S. 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
|
You can also listen to the conference call via Webcast through
the URL:
https://services.choruscall.com/links/dq201123.html
A replay of the call will be available 1 hour after the end of
the conference through November 30,
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:
|
10149965
|
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
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 fourth 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; changes in the political and regulatory
environment; 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,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$125,529
|
|
$133,518
|
|
$83,909
|
|
$427,878
|
|
$231,072
|
Cost of
revenues
|
|
(80,276)
|
|
(110,820)
|
|
(65,834)
|
|
(303,373)
|
|
(186,087)
|
Gross
profit
|
|
45,253
|
|
22,698
|
|
18,075
|
|
124,505
|
|
44,985
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
expenses
|
|
(9,223)
|
|
(10,120)
|
|
(8,178)
|
|
(28,235)
|
|
(23,920)
|
Research and
development expenses
|
|
(1,746)
|
|
(1,958)
|
|
(1,228)
|
|
(5,358)
|
|
(4,052)
|
Other operating
(expense) / income
|
|
(954)
|
|
133
|
|
145
|
|
(1,036)
|
|
579
|
Total operating
expenses
|
|
(11,923)
|
|
(11,945)
|
|
(9,261)
|
|
(34,629)
|
|
(27,393)
|
Income from
operations
|
|
33,330
|
|
10,753
|
|
8,814
|
|
89,876
|
|
17,592
|
Interest
expense
|
|
(5,438)
|
|
(6,653)
|
|
(2,551)
|
|
(18,378)
|
|
(6,461)
|
Interest
income
|
|
200
|
|
368
|
|
193
|
|
719
|
|
775
|
Foreign exchange
loss
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(189)
|
Income before income
taxes
|
|
28,092
|
|
4,468
|
|
6,456
|
|
72,217
|
|
11,717
|
Income tax
expense
|
|
(6,193)
|
|
(2,037)
|
|
(1,561)
|
|
(14,574)
|
|
(3,652)
|
Net income from
continuing operations
|
|
21,899
|
|
2,431
|
|
4,895
|
|
57,643
|
|
8,065
|
Income / (loss) from
discontinued
operations, net of tax
|
|
-
|
|
(55)
|
|
88
|
|
(141)
|
|
1,370
|
Net income
|
|
21,899
|
|
2,376
|
|
4,983
|
|
57,502
|
|
9,435
|
Net income (loss)
attributable to non-
controlling interest
|
|
1,142
|
|
(7)
|
|
-
|
|
1,132
|
|
-
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
|
$20,757
|
|
$2,383
|
|
$4,983
|
|
$56,370
|
|
$9,435
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
21,899
|
|
2,376
|
|
4,983
|
|
57,502
|
|
9,435
|
Other comprehensive
income / (loss):
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
25,937
|
|
1,213
|
|
(21,337)
|
|
17,331
|
|
(20,594)
|
Total other
comprehensive income / (loss)
|
|
25,937
|
|
1,213
|
|
(21,337)
|
|
17,331
|
|
(20,594)
|
Comprehensive income
/ (loss)
|
|
47,836
|
|
3,589
|
|
(16,354)
|
|
74,833
|
|
(11,159)
|
Comprehensive income
/ (loss)
attributable to non-controlling interest
|
|
1,163
|
|
(6)
|
|
-
|
|
1,148
|
|
-
|
Comprehensive income
/ (loss)
attributable to Daqo New Energy Corp.
shareholders
|
|
$46,673
|
|
$3,595
|
|
$(16,354)
|
|
$73,685
|
|
$(11,159)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ADS* (GAAP)
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
0.29
|
|
0.03
|
|
0.07
|
|
0.80
|
|
0.12
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.02
|
Basic
|
|
0.29
|
|
0.03
|
|
0.07
|
|
0.80
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
0.27
|
|
0.03
|
|
0.06
|
|
0.74
|
|
0.12
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.01
|
|
0.00
|
|
0.02
|
Diluted
|
|
0.27
|
|
0.03
|
|
0.07
|
|
0.74
|
|
0.14
|
Weighted average ADS
outstanding*
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
71,281,184
|
|
70,546,207
|
|
68,172,007
|
|
70,570,987
|
|
67,483,068
|
Diluted
|
|
76,626,371
|
|
76,270,603
|
|
75,755,443
|
|
76,398,480
|
|
69,631,876
|
|
|
|
|
|
|
|
|
|
|
|
*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
earning
per ADS and number of ADS information has been retrospectively
adjusted to reflect the change for all periods presented.
|
Daqo New Energy
Corp.
Unaudited
Consolidated Balance Sheets
(US dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$70,150
|
|
$88,215
|
|
$26,985
|
|
Restricted
cash
|
|
39,640
|
|
27,551
|
|
41,192
|
|
Accounts receivable,
net
|
|
42
|
|
65
|
|
129
|
|
Notes
receivable
|
|
1,908
|
|
8,163
|
|
4,294
|
|
Prepaid expenses and
other current assets
|
|
12,972
|
|
13,476
|
|
24,176
|
|
Advances to
suppliers
|
|
1,229
|
|
6,712
|
|
7,823
|
|
Inventories,
net
|
|
53,640
|
|
26,824
|
|
21,023
|
|
Amount due from related
parties
|
|
213
|
|
12
|
|
3,492
|
|
Current assets
associated with discontinued operation
|
|
-
|
|
667
|
|
414
|
|
Total current
assets
|
|
179,794
|
|
171,685
|
|
129,528
|
|
Property, plant and
equipment, net
|
|
987,295
|
|
956,675
|
|
883,084
|
|
Prepaid land use
right
|
|
29,815
|
|
28,826
|
|
21,030
|
|
Deferred tax
assets
|
|
1,386
|
|
1,332
|
|
790
|
|
Investment in
affiliate
|
|
658
|
|
633
|
|
625
|
|
Operating lease
Right-of-use assets
|
|
137
|
|
153
|
|
211
|
|
Other non-current
assets
|
|
147
|
|
-
|
|
-
|
|
Non-current asset
associated with discontinued operation
|
|
-
|
|
181
|
|
6,804
|
|
TOTAL
ASSETS
|
|
1,199,232
|
|
1,159,485
|
|
1,042,072
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings,
including current portion of long-
term borrowings
|
|
131,064
|
|
147,839
|
|
85,278
|
|
Accounts
payable
|
|
19,739
|
|
18,833
|
|
20,070
|
|
Notes
payable
|
|
62,128
|
|
49,143
|
|
62,287
|
|
Advances from
customers-short term portion
|
|
17,544
|
|
23,500
|
|
21,218
|
|
Payables for purchases
of property, plant and equipment
|
|
76,158
|
|
97,239
|
|
81,709
|
|
Accrued expenses and
other current liabilities
|
|
16,616
|
|
18,262
|
|
12,071
|
|
Amount due to related
parties
|
|
4,820
|
|
8,169
|
|
16,787
|
|
Income tax
payable
|
|
7,314
|
|
4,414
|
|
3,437
|
|
Lease liabilities -
short term portion
|
|
78
|
|
74
|
|
81
|
|
Current liabilities
associated with discontinued operation
|
|
-
|
|
877
|
|
1,087
|
|
Total current
liabilities
|
|
335,461
|
|
368,350
|
|
304,025
|
|
Long-term
borrowings
|
|
139,967
|
|
116,911
|
|
163,519
|
|
Advance from customers
– long term portion
|
|
1,266
|
|
1,132
|
|
9,092
|
|
Amount due to related
parties - long term portion
|
|
10,897
|
|
16,247
|
|
15,387
|
|
Other long-term
liabilities
|
|
21,157
|
|
20,067
|
|
20,876
|
|
Deferred tax
liabilities
|
|
5,647
|
|
5,459
|
|
1,145
|
|
Lease liabilities –
long term portion
|
|
-
|
|
-
|
|
74
|
|
Non-current liabilities
associated with discontinued
operation
|
|
-
|
|
-
|
|
-
|
|
TOTAL
LIABILITIES
|
|
514,395
|
|
528,166
|
|
514,118
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
36
|
|
36
|
|
35
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
405,784
|
|
400,103
|
|
382,660
|
|
Accumulated
gains
|
|
257,292
|
|
236,535
|
|
180,834
|
|
Accumulated other
comprehensive loss
|
|
(2,622)
|
|
(28,538)
|
|
(33,826)
|
|
Total Daqo New Energy
Corp.'s shareholders' equity
|
|
658,741
|
|
606,387
|
|
527,954
|
|
Non-controlling
interest
|
|
26,096
|
|
24,932
|
|
-
|
|
Total
equity
|
|
684,837
|
|
631,319
|
|
527,954
|
|
TOTAL LIABILITIES
& EQUITY
|
|
1,199,232
|
|
1,159,485
|
|
1,042,072
|
|
Daqo New Energy
Corp.
Unaudited
Consolidated Statements of Cash Flows
(US dollars in
thousands)
|
|
|
For the nine months
ended Sep 30,
|
|
|
2020
|
|
2019
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
57,502
|
|
9,435
|
|
Less: (loss) / income
from discontinued operations, net of tax
|
|
(141)
|
|
1,370
|
|
Net income from
continuing operations
|
|
57,643
|
|
8,065
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
68,248
|
|
45,814
|
|
Changes in operating
assets and liabilities
|
|
(54,722)
|
|
45,588
|
|
Net cash provided by
operating activities-continuing operations
|
|
71,169
|
|
99,467
|
|
Net cash (used in) /
provided by operation activities-discontinued operations
|
|
(50)
|
|
2,138
|
|
Net cash provided by
operating activities
|
|
71,119
|
|
101,605
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Net cash used in
investing activities-continuing operations
|
|
(80,147)
|
|
(204,067)
|
|
Net cash (used in) / provided
by investing activities-discontinued operations
|
|
(195)
|
|
1,791
|
|
Net cash used in
investing activities
|
|
(80,342)
|
|
(202,276)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Net cash provided by
financing activities – continuing operations
|
|
1,127
|
|
87,445
|
|
Net cash used in
financing activities – discontinued operations
|
|
(64)
|
|
(10,843)
|
|
Net cash provided by
financing activities
|
|
1,063
|
|
76,602
|
|
|
|
|
|
|
|
Non-cash
transactions
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
2,656
|
|
(2,582)
|
|
Net (decrease) /
increase in cash, cash equivalents and restricted cash
|
|
(5,504)
|
|
(26,651)
|
|
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
|
|
109,790
|
|
68,469
|
|
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,
2020
|
|
Sep 30,
2019
|
Cash and cash
equivalents
|
|
70,150
|
|
27,277
|
Restricted
cash
|
|
39,640
|
|
41,192
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
109,790
|
|
68,469
|
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,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
Net
income
|
|
21,899
|
|
2,431
|
|
4,895
|
|
57,643
|
|
8,065
|
Income tax
expense
|
|
6,193
|
|
2,037
|
|
1,561
|
|
14,574
|
|
3,652
|
Interest
expense
|
|
5,438
|
|
6,653
|
|
2,551
|
|
18,378
|
|
6,461
|
Interest
income
|
|
(200)
|
|
(368)
|
|
(193)
|
|
(719)
|
|
(775)
|
Depreciation &
Amortization
|
|
18,289
|
|
16,004
|
|
10,878
|
|
51,568
|
|
32,524
|
EBITDA (non-GAAP)
|
|
51,619
|
|
26,757
|
|
19,692
|
|
141,444
|
|
49,927
|
EBITDA
margin (non-GAAP)
|
|
41.1%
|
|
20.0%
|
|
23.5%
|
|
33.1%
|
|
21.6%
|
|
Three months
Ended
|
Nine months
Ended
|
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
20,757
|
|
2,383
|
|
4,983
|
|
56,370
|
|
9,435
|
Share-based
compensation
|
|
4,478
|
|
4,491
|
|
4,476
|
|
13,430
|
|
13,436
|
Adjusted net
income (non-GAAP) attributable to Daqo New
Energy Corp. shareholders
|
|
25,235
|
|
6,874
|
|
9,459
|
|
69,800
|
|
22,871
|
Adjusted earnings
per basic ADS* (non-GAAP)
|
|
$0.35
|
|
$0.10
|
|
$0.14
|
|
$0.99
|
|
$0.34
|
Adjusted earnings
per diluted ADS* (non-GAAP)
|
|
$0.33
|
|
$0.09
|
|
$0.12
|
|
$0.91
|
|
$0.33
|
|
*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
earning
per ADS and number of ADS information has been retrospectively
adjusted to reflect the change for all periods
presented.
|
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-third-quarter-2020-results-301178820.html
SOURCE Daqo New Energy Corp.