SHANGHAI, March 9, 2021 /PRNewswire/ -- Daqo New Energy Corp.
(NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading
manufacturer of high-purity polysilicon for the global solar PV
industry, today announced its unaudited financial results for the
fourth quarter and fiscal year of 2020.
Fourth Quarter 2020 Financial and Operating
Highlights
- Polysilicon production volume was 21,008
MT in Q4 2020, compared to 18,406
MT in Q3 2020
- Polysilicon sales volume was 23,186 MT in Q4 2020, compared to
13,643 MT in Q3 2020
- Polysilicon average total production cost(1) was
$5.92/kg in Q4 2020, compared to
$5.82/kg in Q3 2020
- Polysilicon average cash cost(1) was $5.04/kg in Q4 2020, compared to $4.88/kg in Q3 2020
- Polysilicon average selling price (ASP) was $10.79/kg in Q4 2020, compared to $9.13/kg in Q3 2020
- Revenue was $247.7 million in Q4
2020, compared to $125.5 million in
Q3 2020
- Gross profit was $109.5 million
in Q4 2020, compared to $45.3 million
in Q3 2020. Gross margin was 44.2% in Q4 2020, compared to 36.0% in
Q3 2020
- Net income attributable to Daqo New Energy Corp. shareholders
was $72.8 million in Q4 2020,
compared to $20.8 million in Q3
2020
- Earnings per basic American Depositary Share
(ADS)(3) was $1.01 in Q4
2020, compared to $0.29 in Q3
2020
- EBITDA (non-GAAP)(2) was $115.1 million in Q4 2020, compared to
$51.6 million in Q3 2020. EBITDA
margin (non-GAAP)(2) was 46.5% in Q4 2020, compared to
41.1% in Q3 2020
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $77.3
million in Q4 2020, compared to $25.2
million in Q3 2020
- Adjusted earnings per basic ADS(3)
(non-GAAP)(2) was $1.07 in
Q4 2020, compared to $0.35 in Q3
2020
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Dec 31,
2020
|
Sep 30,
2020
|
Dec 31,
2019
|
Revenues
|
247.7
|
125.5
|
118.9
|
Gross
profit
|
109.5
|
45.3
|
35.1
|
Gross
margin
|
44.2%
|
36.0%
|
29.5%
|
Income from
operations
|
98.0
|
33.3
|
30.1
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
72.8
|
20.8
|
20.1
|
Earnings per basic
ADS(3) ($ per ADS)
|
1.01
|
0.29
|
0.29
|
Adjusted net income
(non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
|
77.3
|
25.2
|
24.5
|
Adjusted earnings per
basic ADS(3) (non-GAAP)(2) ($ per
ADS)
|
1.07
|
0.35
|
0.35
|
EBITDA
(non-GAAP)(2)
|
115.1
|
51.6
|
45.4
|
EBITDA margin
(non-GAAP)(2)
|
46.5%
|
41.1%
|
38.2%
|
Polysilicon sales
volume (MT)
|
23,186
|
13,643
|
13,291
|
Polysilicon average
total production cost ($/kg)(1)
|
5.92
|
5.82
|
6.38
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
5.04
|
4.88
|
5.47
|
Full Year 2020 Financial and Operating Highlights
- Polysilicon production volume was 77,288 MT in 2020, compared
to 41,556 MT in 2019
- Polysilicon sales volume was 74,812
MT in 2020, compared to 38,110
MT in 2019
- Revenue was $675.6 million in
2020, compared to $350.0 million in
2019
- Gross profit was $234.0 million
in 2020, compared to $80.1 million in
2019. Gross margin was 34.6% in 2020, compared to 22.9% in
2019
- EBITDA (non-GAAP)(2) was $256.5 million in 2020, compared to $95.3 million in 2019
- EBITDA margin (non-GAAP)(2) was 38.0% in 2020,
compared to 27.2% in 2019
- Net income attributable to Daqo New Energy Corp. shareholders
was $129.2 million in 2020, compared
to $29.5 million in 2019
- Earnings per basic ADS was $1.82
in 2020, compared to $0.43 in
2019
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $147.1 million in 2020, compared to $47.4 million in 2019
- Adjusted earnings per basic ADS(3)
(non-GAAP)(2) was $2.07 in
2020, compared to $0.70 in 2019
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 basic ADS on a non-GAAP basis to provide
supplemental information regarding its financial performance.
For
more information on these non-GAAP financial measures, please see
the section captioned "Use of Non-GAAP Financial Measures"
and the tables captioned "Reconciliation of non-GAAP financial
measures to comparable US GAAP measures" set forth at the end
of
this press release.
|
(3) ADS means
American Depositary Share. On November 17, 2020, the Company
effected a change of the ratio of its ADSs to ordinary
shares from one (1) ADS representing twenty-five (25) ordinary
shares to one (1) ADS representing five (5) ordinary shares.
The
earnings per ADS and number of ADS information has been
retrospectively adjusted to reflect the change for all periods
presented.
|
Management Remarks
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are
very pleased to report a strong quarter in terms of operational and
financial results to bring a successful close of the year 2020. I
would like to thank our entire team for their hard work, commitment
and dedication in achieving these excellent results. During the
quarter we produced 21,008 MT of
polysilicon, a record-high in our company's history. Our production
cost was reduced by 2.7% in RMB terms, primarily due to our efforts
in additional energy savings, offset by a higher than expected rise
in the cost of silicon raw material in the fourth quarter. The
increase in our cost in US dollar terms compared to the third
quarter was the result of exchange rate fluctuations due to the RMB
appreciation. In 2021, we will continue our efforts to reduce cost,
as we begin to benefit from our newly implemented digital
manufacturing system to maximize our output, optimize our
production process and further improve our operational stability
and product quality."
"During the months of November and December 2020, we saw significant pick-up in
polysilicon demand from our customers to meet their increasing
production needs to serve the growing solar end-market. During the
fourth quarter, we sold 23,186 MT of polysilicon, which is the
highest quarterly sales volume the company ever achieved. Since the
beginning of 2021, we continue to see rising polysilicon market
prices, and most recently market poly ASP has reached a range of
$15/kg to
$16/kg. As our mono-wafer
customers continue their capacity expansion plans supported by
robust downstream market demand, we believe that the supply of
polysilicon will continue to be very tight throughout the year
given very limited additional polysilicon supply this
year."
"Regarding the status of the proposed initial public offering of
our Xinjiang Daqo subsidiary on China's STAR market, the stock listing
committee of the Shanghai Stock Exchange STAR Market reviewed
Xinjiang Daqo's application in February
2021 and determined that Xinjiang Daqo had already met the
offering, listing and disclosure requirements related to its
potential STAR Market IPO. As a next step, Xinjiang Daqo will need
to go through the registration process with the China Securities
Regulatory Commission before its STAR Market IPO can take place.
The proceeds of this potential IPO will be used to fund our Phase
4B polysilicon project with an annual
capacity of 35,000 MT. We have
already started the preparation works for Phase 4B including the design and procurement process.
We plan to start the construction in mid-March and expect to
complete the project by the end of 2021 and ramp it up to full
capacity by the end of Q1 2022."
"I have been in the solar industry for over a decade, and the
prospects for the solar industry have never been brighter. Driven
by the dual trends of solar grid parity and the urgent need to
address climate change, the industry is on the cusp of undergoing
tremendous growth over the next few years without the need for
government subsidies. Solar energy is now one of the most
competitive form of power generation even compared to fossil fuel,
and we are beginning to see real world applications where
solar is the optimal choice to meet
growing energy needs and to replace legacy carbon-based
generation. Major economies around the world have also begun
to implement ambitious policies and initiatives to support and
mandate the use of renewable energy for power generation. The
European Union has announced its Green Deal to fight climate change
through progressive policies for a climate-neutral and sustainable
EU with the goal of no net emissions of greenhouse gases by 2050
and to de-carbonize the energy sector. Over the next few years, the
European Climate Law is expected to turn this political commitment
into a legal obligation. In China,
President Xi Jinping has announced China will aim to hit peak emissions before
2030 and reach carbon neutrality by 2060 and we expect various
government agencies including the NEA and the NDRC to introduce and
implement policies to mandate and support the use of renewable
energy. For 2021, the NEA has indicated its intention to accelerate
the development and deployment of wind and solar energy, with a
goal of adding a combined 120GW of wind and solar in 2021. In the
U.S., with the Biden administration's commitment to fight climate
change and plan for clean energy revolution with the goal of
achieving a 100% clean energy economy and reaching net-zero
emissions no later than 2050, we believe favorable policies are
forthcoming to support renewable energy's growth in the U.S."
"We are standing at the beginning of a new era that will demand
more and more clean, renewable and cost effective energy resources
among which solar PV is one of the most competitive. We will focus
on our core business, continue to expand capacity and further
improve quality to better serve the fast growing solar PV
market."
Outlook and guidance
The Company expects to produce approximately 19,500MT to
20,500MT of polysilicon and sell approximately
20,000MT to 21,000MT of polysilicon to external customers
during the first quarter of 2021. For the full year of 2021, the
Company expects to produce approximately 80,000 to 81,000 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.
Fourth Quarter 2020 Results
Revenues
Revenues were $247.7 million,
compared to $125.5 million in the
third quarter of 2020 and $118.9
million in the fourth quarter of 2019. The increase in
revenues was primarily due to higher polysilicon sales volume and
higher ASPs.
Gross profit and margin
Gross profit was $109.5 million,
compared to $45.3 million in the
third quarter of 2020 and $35.1
million in the fourth quarter of 2019. Gross margin was
44.2%, compared to 36% in the third quarter of 2020 and 29.5% in
the fourth quarter of 2019. The increase in gross margin was
primarily due to higher ASPs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $11.2 million, compared to $9.2 million in the third quarter of 2020 and
$9.0 million in the fourth quarter of
2019. The increase was primarily due to an increase in shipping
costs as a result of higher sales volume, as well as an
increase in personnel cost. SG&A expenses during the quarter
included $4.5 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 $1.5 million, compared to $1.7 million in the third quarter of 2020 and
$1.2 million in the fourth 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
$98.0 million, compared to
$33.3 million in the third quarter of
2020 and $30.1 million in the fourth
quarter of 2019.
Operating margin was 39.6%, compared to 26.6% in the third
quarter of 2020 and 25.3% in the fourth quarter of 2019.
Interest expense
Interest expense was $8.3 million,
compared to $5.4 million in the third
quarter of 2020 and $3.9 million in
the fourth quarter of 2019. The increase was primarily due to an
increase in interest expense for discounted bank notes.
EBITDA (non-GAAP)
EBITDA (non-GAAP) was $115.1
million, compared to $51.6
million in the third quarter of 2020 and $45.4 million in the fourth quarter of 2019.
EBITDA margin (non-GAAP) was 46.5%, compared to 41.1% in the third
quarter of 2020 and 38.2% in the fourth 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 $72.8
million, compared to $20.8
million in the third quarter of 2020 and $20.1 million in the fourth quarter of 2019.
Earnings per basic American Depository Share (ADS) was
$1.01, compared to $0.29 in the third quarter of 2020, and
$0.29 in the fourth quarter of
2019.
Financial Condition
As of December 31, 2020, the
Company had $118.4 million in cash
and cash equivalents and restricted cash, compared to $109.8 million as of September 30, 2020 and $115.3 million as of December 31, 2019. As of December 31, 2020, the notes receivable balance
was $0.2 million, compared to
$1.9 million as of September 30, 2020 and $5.6 million as of December 31, 2019. As of December 31, 2020, total borrowings were
$193.7 million, of which $123.2 million were long-term borrowings,
compared to total borrowings of $271.0
million, including $140.0
million long-term borrowings, as of September 30, 2020 and total borrowings of
$280.1 million, including
$151.5 million long-term borrowings,
as of December 31, 2019.
Cash Flows
For the twelve months ended December 31,
2020, net cash provided by operating activities was
$209.7 million, compared to
$181.0 million in the same period of
2019.
For the twelve months ended December 31,
2020, net cash used in investing activities was $118.5 million, compared to $261.8 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 the Company's
Phase 4A polysilicon projects.
For the twelve months ended December 31,
2020, net cash used in financing activities was $95.5 million, compared to net cash provided by
financing activities of $102.3
million in the same period of 2019.
Full Year 2020 Results
Revenues
Revenues were $675.6 million,
compared to $350.0 million in 2019.
The increase was primarily due to higher polysilicon sales volume
and partially offset by slightly lower ASPs.
Gross profit and margin
Gross profit was $234.0 million,
compared to $80.1 million in 2019.
Gross margin was 34.6%, compared to 22.9% in 2019. The increase was
primarily due to lower production cost partially offset by slightly
lower ASPs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $39.5 million, compared to $32.9 million in 2019. The increase was primarily
due to an increase in shipping costs as a result of higher sales
volume, as well as an increase in personnel cost.
Research and development expenses
Research and development (R&D) expenses were $6.9 million, compared to $5.3 million in 2019. Research and development
expenses can vary from period to period and reflect R&D
activities that took place during the period.
Income from operations and operating margin
As a result of the foregoing, income from operations was
$187.9 million, compared to
$47.5 million in 2019. Operating
margin was 27.8%, compared to 13.6% in 2019.
Interest expense
Interest expense was $26.6
million, compared to $10.4
million in 2019. The increase was primarily due to a
decrease of capitalized interest expense.
Income tax expense
Income tax expense was $28.2
million, compared to $9.6
million in 2019. The increase was primarily due to higher
income before income taxes.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
Net income attributable to Daqo New Energy Corp. shareholders
was $129.2 million, compared to
$29.5 million in 2019. Earnings per
basic ADS was $1.82, compared to
$0.43 in 2019.
Adjusted net income (non-GAAP) attributable to Daqo New Energy
Corp. shareholders was $147.1
million, compared to $47.4
million in 2019. Adjusted earnings per basic ADS (non-GAAP)
was $2.07, compared to $0.70 in 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 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
March 9, 2021. (9:00 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/dq210309.html
A replay of the call will be available 1 hour after the end of
the conference through March 16,
2021.
The conference call replay numbers are as follows:
US Toll
Free:
|
+1-877-344-7529
|
International
Toll:
|
+1-412-317-0088
|
Canada Toll
Free:
|
855-669-9568
|
Replay access
code:
|
10152748
|
To access the replay using an international dial-in number,
please select the link below.
https://services.choruscall.com/ccforms/replay.html
Participants will be required to state their name and company upon
entering the call.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a
leading manufacturer of high-purity polysilicon for the global
solar PV industry. Founded in 2007, the Company is one of the
world's lowest cost producers of high-purity polysilicon. Daqo's
highly-efficient and technically advanced manufacturing facility in
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 first quarter and the full year of 2021 and
quotations from management in this announcement, Xinjiang Daqo's
IPO plan 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
|
Year Ended Dec
31,
|
|
|
Dec 31,
2020
|
|
Sep 30,
2020
|
|
Dec 31,
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$247,725
|
|
$125,529
|
|
$118,918
|
|
$675,602
|
|
$349,991
|
|
Cost of
revenues
|
|
(138,238)
|
|
(80,276)
|
|
(83,800)
|
|
(441,610)
|
|
(269,887)
|
|
Gross
profit
|
|
109,487
|
|
45,253
|
|
35,118
|
|
233,992
|
|
80,104
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative expenses
|
|
(11,236)
|
|
(9,223)
|
|
(8,987)
|
|
(39,472)
|
|
(32,907)
|
|
Research and
development
expenses
|
|
(1,498)
|
|
(1,746)
|
|
(1,206)
|
|
(6,856)
|
|
(5,258)
|
|
Other operating
income
|
|
1,226
|
|
(954)
|
|
5,164
|
|
191
|
|
5,546
|
|
Total
operating (expenses) /
income
|
|
(11,508)
|
|
(11,923)
|
|
(5,029)
|
|
(46,137)
|
|
(32,619)
|
|
Income from
operations
|
|
97,979
|
|
33,330
|
|
30,089
|
|
187,855
|
|
47,485
|
|
Interest
expense
|
|
(8,254)
|
|
(5,438)
|
|
(3,936)
|
|
(26,632)
|
|
(10,397)
|
|
Interest
income
|
|
187
|
|
200
|
|
208
|
|
907
|
|
983
|
|
Foreign exchange gain /
(loss)
|
|
-
|
|
-
|
|
4
|
|
0
|
|
(185)
|
|
Income before income
taxes
|
|
89,912
|
|
28,092
|
|
26,365
|
|
162,130
|
|
37,886
|
|
Income tax
expense
|
|
(13,606)
|
|
(6,193)
|
|
(5,972)
|
|
(28,182)
|
|
(9,623)
|
|
Net income from
continuing
operations
|
|
76,306
|
|
21,899
|
|
20,393
|
|
133,948
|
|
28,263
|
|
Net (loss) / income
from
discontinued operations
|
|
-
|
|
-
|
|
(306)
|
|
(141)
|
|
1,261
|
|
Net income
|
|
76,306
|
|
21,899
|
|
20,087
|
|
133,807
|
|
29,524
|
|
Net (loss) / income
attributable
to non-controlling interest
|
|
3,480
|
|
1,142
|
|
(1)
|
|
4,612
|
|
(1)
|
|
Net income
attributable to Daqo
New Energy Corp.
shareholders
|
|
$72,826
|
|
$20,757
|
|
$20,088
|
|
$129,195
|
|
$29,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
76,306
|
|
21,899
|
|
20,087
|
|
133,807
|
|
29,524
|
|
Other comprehensive
income /
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
|
31,107
|
|
25,937
|
|
13,892
|
|
48,438
|
|
(6,702)
|
|
Total other
comprehensive
income / (loss)
|
|
31,107
|
|
25,937
|
|
13,892
|
|
48,438
|
|
(6,702)
|
|
Comprehensive income
/ (loss)
|
|
107,413
|
|
47,836
|
|
33,979
|
|
182,245
|
|
22,822
|
|
Comprehensive
income
attributable to non-controlling
interest
|
|
5,698
|
|
1,163
|
|
2
|
|
6,845
|
|
2
|
|
Comprehensive income
/ (loss)
attributable to Daqo New
Energy Corp. shareholders
|
|
$101,715
|
|
$46,673
|
|
$33,977
|
|
$175,400
|
|
$22,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per
ADS
|
|
|
|
|
|
|
|
|
|
|
|
-Continuing
operations
|
|
1.01
|
|
0.29
|
|
0.29
|
|
1.82
|
|
0.41
|
|
-Discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.02
|
|
Basic
|
|
1.01
|
|
0.29
|
|
0.29
|
|
1.82
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Continuing
operations
|
|
0.96
|
|
0.27
|
|
0.26
|
|
1.72
|
|
0.39
|
|
-Discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.02
|
|
Diluted
|
|
0.96
|
|
0.27
|
|
0.26
|
|
1.72
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
ADS
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
72,147,808
|
|
71,281,184
|
|
69,186,250
|
|
71,017,403
|
|
67,914,211
|
|
Diluted
|
|
76,065,033
|
|
76,626,371
|
|
75,927,961
|
|
75,003,430
|
|
71,466,701
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31,
2020
|
|
Sep 30,
2020
|
|
Dec 31,
2019
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
76,596
|
|
70,150
|
|
$51,840
|
|
Restricted
cash
|
|
41,808
|
|
39,640
|
|
62,609
|
|
Accounts receivable,
net
|
|
-
|
|
42
|
|
13
|
|
Notes
receivable
|
|
153
|
|
1,908
|
|
5,644
|
|
Prepaid expenses and
other
current assets
|
|
11,477
|
|
12,972
|
|
15,344
|
|
Advances to
suppliers
|
|
7,949
|
|
1,229
|
|
1,544
|
|
Inventories
|
|
42,159
|
|
53,640
|
|
36,391
|
|
Amount due from related
parties
|
|
129
|
|
213
|
|
17
|
|
Current assets
associated with
discontinued operation
|
|
-
|
|
-
|
|
926
|
|
Total current
assets
|
|
180,271
|
|
179,794
|
|
174,328
|
|
Property, plant and
equipment, net
|
|
1,027,086
|
|
987,295
|
|
995,027
|
|
Prepaid land use
right
|
|
30,829
|
|
29,815
|
|
29,593
|
|
Deferred tax
assets
|
|
-
|
|
1,386
|
|
1,352
|
|
Investment in
affiliate
|
|
685
|
|
658
|
|
642
|
|
Operating lease
right-of-use assets
|
|
119
|
|
137
|
|
197
|
|
Other non-current
assets
|
|
153
|
|
147
|
|
-
|
|
Non-current asset
associated with
discontinued operation
|
|
-
|
|
-
|
|
217
|
|
TOTAL ASSETS
|
|
1,239,143
|
|
1,199,232
|
|
1,201,356
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
borrowings, including
current portion of long-term borrowings
|
|
70,431
|
|
131,064
|
|
128,612
|
|
Accounts
payable
|
|
18,953
|
|
19,739
|
|
12,713
|
|
Notes
payable
|
|
49,355
|
|
62,128
|
|
101,171
|
|
Advances from
customers-short term portion
|
|
37,783
|
|
17,544
|
|
33,028
|
|
Payables for purchases
of property,
plant and equipment
|
|
49,555
|
|
76,158
|
|
112,538
|
|
Accrued expenses and
other
current liabilities
|
|
30,148
|
|
16,616
|
|
12,222
|
|
Amount due to related
parties
|
|
5,150
|
|
4,820
|
|
38,825
|
|
Income tax
payable
|
|
22,678
|
|
7,314
|
|
4,789
|
|
Lease liabilities -
short term portion
|
|
82
|
|
78
|
|
85
|
|
Current liabilities
associated with
discontinued operation
|
|
-
|
|
-
|
|
1,165
|
|
Total current
liabilities
|
|
284,135
|
|
335,461
|
|
445,148
|
|
Long-term
borrowings
|
|
123,222
|
|
139,967
|
|
151,518
|
|
Advance from customers
– long
term portion
|
|
3,265
|
|
1,266
|
|
2,154
|
|
Amount due to related
parties -
long term portion
|
|
4,238
|
|
10,897
|
|
7,899
|
|
Deferred government
subsidies
|
|
21,907
|
|
21,157
|
|
21,034
|
|
Deferred Tax
Liabilities
|
|
3,461
|
|
5,647
|
|
6,368
|
|
Lease liabilities –
long term portion
|
|
-
|
|
-
|
|
77
|
|
TOTAL
LIABILITIES
|
|
440,228
|
|
514,395
|
|
634,198
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
37
|
|
36
|
|
35
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
412,450
|
|
405,784
|
|
387,371
|
|
Accumulated
gains
|
|
330,118
|
|
257,292
|
|
200,922
|
|
Accumulated other
comprehensive
income/(loss)
|
|
26,267
|
|
(2,622)
|
|
(19,937)
|
|
Total Daqo New Energy
Corp.'s
shareholders' equity
|
|
767,123
|
|
658,741
|
|
566,642
|
|
Non-controlling
interest
|
|
31,792
|
|
26,096
|
|
516
|
|
Total
equity
|
|
798,915
|
|
684,837
|
|
567,158
|
|
TOTAL LIABILITIES
& EQUITY
|
|
1,239,143
|
|
1,199,232
|
|
1,201,356
|
|
Daqo New Energy
Corp.
|
Unaudited
Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
|
|
|
For the year ended
December 31,
|
|
|
2020
|
|
2019
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
$ 133,807
|
|
$ 29,524
|
|
Less: (Loss)/ income
from discontinued operations, net of tax
|
|
(141)
|
|
1,261
|
|
Net income from
continuing operations
|
|
133,948
|
|
28,263
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
90,269
|
|
65,644
|
|
Changes in operating
assets and liabilities
|
|
(14,464)
|
|
86,076
|
|
Net cash provided by
operating activities-continuing operations
|
|
209,753
|
|
179,983
|
|
Net cash (used in)/
provided by operation activities-discontinued
operations
|
|
(50)
|
|
1,010
|
|
Net cash provided by
operating activities
|
|
209,703
|
|
180,993
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Net cash used in
investing activities-continuing operations
|
|
(118,292)
|
|
(263,284)
|
|
Net cash (used in)/
provided by investing activities-discontinuing
operations
|
|
(195)
|
|
1,457
|
|
Net cash used in
investing activities
|
|
(118,487)
|
|
(261,827)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Net cash (used in)/
provided by financing activities – continuing
operations
|
|
(95,470)
|
|
104,979
|
|
Net cash used in
financing activities – discontinued operations
|
|
-
|
|
(2,651)
|
|
Net cash (used
in)/provided by financing activities
|
|
(95,471)
|
|
102,328
|
|
Non-cash
transactions
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
7,364
|
|
(1,320)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
3,110
|
|
20,174
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
year
|
|
115,294
|
|
95,120
|
|
Cash, cash
equivalents and restricted cash at the end of the year
|
|
118,404
|
|
115,294
|
|
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.
|
|
Dec 31,
2020
|
|
Dec 31,
2019
|
Cash and cash
equivalents
|
|
76,596
|
|
52,685
|
Restricted
cash
|
|
41,808
|
|
62,609
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
118,404
|
|
115,294
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
|
|
|
|
|
Three months
Ended
|
Year
ended
|
|
|
Dec. 31,
2020
|
|
Sep. 30,
2020
|
|
Dec. 31,
2019
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
Net income from
continuing
operations
|
|
76,306
|
|
21,899
|
|
20,393
|
|
133,948
|
|
28,263
|
Income tax
expense
|
|
13,606
|
|
6,193
|
|
5,972
|
|
28,182
|
|
9,623
|
Interest
expense
|
|
8,254
|
|
5,438
|
|
3,936
|
|
26,632
|
|
10,397
|
Interest
income
|
|
(187)
|
|
(200)
|
|
(208)
|
|
(907)
|
|
(983)
|
Depreciation &
amortization
|
|
17,118
|
|
18,289
|
|
15,281
|
|
68,686
|
|
48,003
|
EBITDA
(non-GAAP)
|
|
115,097
|
|
51,619
|
|
45,374
|
|
256,541
|
|
95,303
|
EBIDTA margin
(non-GAAP)
|
|
46.5%
|
|
41.1%
|
|
38.2%
|
|
38.0%
|
|
27.2%
|
|
Three months
Ended
|
Year
ended
|
|
|
Dec. 31,
2020
|
|
Sep. 30,
2020
|
|
Dec. 31,
2019
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
Net income /
(loss)
attributable to Daqo New
Energy Corp. shareholders
|
|
72,826
|
|
20,757
|
|
20,088
|
|
129,195
|
|
29,525
|
Share-based
compensation
|
|
4,478
|
|
4,478
|
|
4,461
|
|
17,908
|
|
17,897
|
Adjusted net
income (non-
GAAP) attributable to Daqo
New Energy Corp. shareholders
|
|
77,304
|
|
25,235
|
|
24,549
|
|
147,103
|
|
47,422
|
Adjusted earnings
per basic
ADS (non-GAAP)
|
|
$1.07
|
|
$0.35
|
|
$0.35
|
|
$2.07
|
|
$0.70
|
Adjusted earnings
per diluted
ADS (non-GAAP)
|
|
$1.02
|
|
$0.33
|
|
$0.32
|
|
$1.96
|
|
$0.66
|
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SOURCE Daqo New Energy Corp.