SHANGHAI, Aug. 18, 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 second quarter of 2021.
Second Quarter 2021 Financial and Operating
Highlights
- Polysilicon production volume was 21,102
MT in Q2 2021, compared to 20,185 MT in Q1 2021
- Polysilicon sales volume was 21,060 MT in Q2 2021, compared to
21,471 MT in Q1 2021
- Polysilicon average total production cost(1) was
$6.31/kg in Q2 2021, compared to
$6.29/kg in Q1 2021
- Polysilicon average cash cost(1) was $5.41/kg in Q2 2021, compared to $5.37/kg in Q1 2021
- Polysilicon average selling price (ASP) was $20.81/kg in Q2 2021, compared to $11.90/kg in Q1 2021
- Revenue was $441.4 million in Q2
2021, compared to $256.1 million in
Q1 2021
- Gross profit was $303.2 million
in Q2 2021, compared to $118.9
million in Q1 2021. Gross margin was 68.7% in Q2 2021,
compared to 46.4% in Q1 2021
- Net income attributable to Daqo New Energy Corp. shareholders
was $232.1 million in Q2 2021,
compared to $83.2 million in Q1
2021
- Earnings per basic American Depositary Share
(ADS)(3) was $3.15 in Q2
2021, compared to $1.13 in Q1
2021
- EBITDA (non-GAAP)(2) was $311.7 million in Q2 2021, compared to
$128.1 million in Q1 2021. EBITDA
margin (non-GAAP)(2) was 70.6% in Q2 2021, compared to
50.0% in Q1 2021
- Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders was $234.5 million in Q2 2021, compared to
$86.2 million in Q1 2021
- Adjusted earnings per basic ADS(3)
(non-GAAP)(2) was $3.18 in
Q2 2021, compared to $1.18 in Q1
2021
|
Three months
ended
|
US$
millions
except as indicated
otherwise
|
Jun 30,
2021
|
Mar 31,
2021
|
Jun 30,
2020
|
Revenues
|
441.4
|
256.1
|
133.5
|
Gross
profit
|
303.2
|
118.9
|
22.7
|
Gross
margin
|
68.7%
|
46.4%
|
17.0%
|
Income from
operations
|
292.4
|
109.2
|
10.8
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
232.1
|
83.2
|
2.4
|
Earnings per basic
ADS(3) ($ per ADS)
|
3.15
|
1.13
|
0.03
|
Adjusted net income
(non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
|
234.5
|
86.2
|
6.9
|
Adjusted earnings per
basic ADS(3) (non-GAAP)(2) ($ per
ADS)
|
3.18
|
1.18
|
0.10
|
EBITDA (non-GAAP)
(2)
|
311.7
|
128.1
|
26.8
|
EBITDA margin
(non-GAAP)(2)
|
70.6%
|
50.0%
|
20.0%
|
Polysilicon sales
volume (MT)
|
21,060
|
21,471
|
18,881
|
Polysilicon average
total production cost ($/kg)(1)
|
6.31
|
6.29
|
5.79
|
Polysilicon average
cash cost (excl. dep'n) ($/kg)(1)
|
5.41
|
5.37
|
4.87
|
Notes:
(1) Production cost and cash cost only refer to production
in our polysilicon facilities in Xinjiang. Production cost is
calculated by the inventoriable costs relating to production of
polysilicon in Xinjiang divided by the production volume in the
period indicated. Cash cost is calculated by the inventoriable
costs relating to production of polysilicon excluding depreciation
expense, divided by the production volume in the period
indicated.
(2) Daqo New Energy provides EBITDA, EBITDA margins,
adjusted net income attributable to Daqo New Energy Corp.
shareholders and adjusted earnings per basic ADS on a non-GAAP
basis to provide supplemental information regarding its financial
performance. For more information on these non-GAAP financial
measures, please see the section captioned "Use of Non-GAAP
Financial Measures" and the tables captioned "Reconciliation of
non-GAAP financial measures to comparable US GAAP measures" set
forth at the end of this press release.
(3) ADS means American Depositary Share. On November 17, 2020, the Company effected a change
of the ratio of its ADSs to ordinary shares from one (1) ADS
representing twenty-five (25) ordinary shares to one (1) ADS
representing five (5) ordinary shares. The earnings per ADS and
number of ADS information have been retrospectively adjusted to
reflect the change for all periods presented.
Management Remarks
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are
very excited to report an excellent quarter with strong revenue
growth and better-than-expected profitability, as the Company
achieved record-high production volume, gross profit, and net
income. With the global focus on addressing the climate challenge
with plans to reach carbon neutrality, market conditions remain
strong for the polysilicon sector. The strong increase in
downstream demand has led to a shortage of polysilicon and caused
our polysilicon ASP to rise significantly from $11.90/kg in Q1 to $20.81/kg in Q2. In July and August, the market
price for mono-grade polysilicon has remained at approximately
$26-28/kg and we expect the strong
price momentum to continue into the second half of this year.
Despite the rise in solar module prices in the first half of this
year, we continue to see stronger-than-expected market demand even
at the new market prices."
"Recently the solar value chain has been stable at the new
market prices and downstream manufacturers are currently able to
pass through price increases to their customers. During the week of
August 9, major solar wafer and solar
cell manufacturers in China
announced price increases for solar wafers and solar cells, further
demonstrating the strong end-market demand. We saw an uptick in
polysilicon pricing in the last two weeks with a surge in orders
from our diverse customer base. We expect the constrained
polysilicon supply to be the main limiting factor to the size of
the global solar market this year."
"Polysilicon production is a complex chemical process and has
the highest barrier to entry in the solar value chain. Based on our
research, we expect to see approximately 180~220 thousand MT of
additional polysilicon supply in 2022 considering a potential six
months' ramp-up period for other polysilicon producers. This total
global polysilicon supply can be used to produce approximately
240~250 GW of solar modules which can support approximately 200~210
GW of solar installations in 2022. So, the polysilicon sector will
still be the one with most constrained supply across the main solar
PV manufacturing value chain in 2022. On the demand side, more and
more countries have set up time tables for peak carbon and carbon
neutrality targets that will significantly increase demand for
renewable energies including solar PV. In addition, there is still
meaningful room for potential cost reduction across the value
chain, which will effectively stimulate larger demand, especially
given that solar PV has already reached grid parity in many
countries and regions in the world. As a result, we believe
polysilicon pricing will remain healthy in 2022 making our sector
one of the most attractive sectors in the solar PV industry in the
long run given its high entry barrier and operational
complexity."
"On the policy front, during the Politburo Central Committee
meeting on July 30 regarding economic
activity in the second half of 2021, with China's President Mr. Xi Jinping presiding
over the meeting, the central government reiterated the urgency for
national coordination on carbon peak and carbon neutrality goals
and the development of the peak carbon 2030 action plans and
related policies as early as possible. In addition, China recently announced an ambitious program
to massively deploy distributed generation solar projects at the
local government level. We believe solar will continue to be a
strong beneficiary of government policies and support."
"With regard to our ESG initiatives, we are in the process of
incorporating environmental, social and governance factors in all
of our major business decisions, and we published our inaugural ESG
Sustainability Report in July. We are already making substantial
progress on the sustainability front, including installing a new
wastewater treatment facility in 2018 that reduced our wastewater
discharge density by 60% in 2020 compared to 2018. Furthermore, by
increasing energy efficiency and energy recycling as well as
optimizing our production process, we reduced our comprehensive
energy consumption density by 40% in 2020 compared to 2017. We will
continue to work on our ESG efforts, including planning for greater
renewable energy use as part of our energy sources in the
future."
"We continue to focus on initiatives to strengthen the Company's
long-term competitiveness. Our major operational subsidiary,
Xinjiang Daqo New Energy ("Xinjiang Daqo"), successfully completed
its IPO listing on China's A share
market and started trading on the Shanghai Stock Exchange's
Sci-Tech Innovation Board (SSE, code: 688303) on 22 July, 2021. The total gross proceeds of the
IPO are approximately RMB6.45
billion, which will fund Xinjiang Daqo's polysilicon
expansion project and provide additional capital for its future
growth plans. Following the Xinjiang Daqo's IPO, Daqo New Energy
directly holds approximately 79.6% of Xinjiang Daqo's shares and
indirectly holds 1.1% of Xinjiang Daqo's shares through Daqo New
Energy's wholly-owned subsidiary Chongqing Daqo, for a total
ownership of 80.7% of the A-share listed subsidiary. There is no
Variable Interest Entity (VIE) structure between Daqo New Energy
and Xinjiang Daqo. The successful IPO will offer us an additional
venue to access the attractive capital markets in China for future growth and expansion. With
our advantages of competitive cost structure, quality and
technology advancement, outstanding operational expertise and
experienced management team, we have set up a road map to increase
our capacity to 270 thousand MT by the end of 2024, representing an
approximately 50% annual growth rate of our production capacity
over the next three years to better serve the fast-growing global
solar PV market."
Outlook and guidance
The Company produced 41,287 MT of polysilicon and sold
approximately 42,531 MT of
polysilicon in the first half of 2021, representing full
utilization level of the company's production facilities. For the
second half of 2021, the Company expects to remain in full
utilization with sales volume similar to production volume. For the
full year of 2021, the Company raises its production guidance from
the previous level of 81,000 to 83,000
MT to the level of approximately 83,000 to 85,000 MT of polysilicon for the full year,
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.
Second Quarter 2021 Results
Revenues
Revenues were $441.4 million,
compared to $256.1 million in the
first quarter of 2021 and $133.5
million in the second quarter of 2020. The increase in
revenues as compared to the first quarter of 2021 was primarily due
to higher ASPs partially offset by slightly lower polysilicon sales
volume.
Gross profit and margin
Gross profit was $303.2 million,
compared to $118.9 million in the
first quarter of 2021 and $22.7 million in the second quarter of 2020.
Gross margin was 68.7%, compared to 46.4% in the first quarter of
2021 and 17.0% in the second quarter of 2020. The increase in gross
margin was primarily due to higher ASPs.
Selling, general and administrative expenses
Selling, general and administrative expenses were $9.3 million, compared to $9.0 million in the first quarter of 2021 and
$10.1 million in the second quarter
of 2020. SG&A expenses during the quarter included $2.4 million in non-cash share-based compensation
costs related to the Company's share incentive plan, compared to
$3.0 million in the first quarter of
2021 and $4.5 million in the second
quarter of 2020.
Research and development expenses
Research and development (R&D) expenses were $2.1 million, compared to $1.2 million in the first quarter of 2021 and
$2.0 million in the second quarter of
2020. Research and development expenses can vary from period to
period and reflect R&D activities that take place during the
quarter.
Income from operations and operating margin
As a result of the foregoing, income from operations was
$292.4 million, compared to
$109.2 million in the first quarter
of 2021 and $10.8 million in the
second quarter of 2020.
Operating margin was 66.3%, compared to 42.6% in the first
quarter of 2021 and 8.1% in the second quarter of 2020.
Interest expense
Interest expense was $7.2 million,
compared to $7.8 million in the first
quarter of 2021 and $6.7 million in
the second quarter of 2020.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
As a result of the aforementioned, net income attributable to
Daqo New Energy Corp. shareholders was $232.1 million, compared to $83.2 million in the first quarter of 2020 and
$2.4 million in the second quarter of
2020.
Earnings per basic American Depository Share (ADS) was
$3.15, compared to $1.13 in the first quarter of 2021, and
$0.03 in the second quarter of
2020.
EBITDA (non-GAAP)
EBITDA (non-GAAP) was $311.7
million, compared to $128.1
million in the first quarter of 2021 and $26.8 million in the second quarter of 2020.
EBITDA margin (non-GAAP) was 70.6%, compared to 50.0% in the first
quarter of 2021 and 20.0% in the second quarter of 2020.
Financial Condition
As of June 30,2021, the Company
had $269.7 million in cash and cash
equivalents and restricted cash, compared to $227.8 million as of March
31, 2021 and $115.8 million as
of June 30, 2020. As of June 30, 2021, the notes receivable balance was
$97.0 million, compared to
$38.5 million as of March 31, 2021 and $8.2
million as of June 30, 2020.
As of June 30, 2021, total borrowings
were $156.6 million, of which
$70.9 million were long-term
borrowings, compared to total borrowings of $222.2 million, including $100.4 million long-term borrowings, as of
March 31, 2021 and total borrowings
of $264.8 million, including
$116.9 million long-term borrowings,
as of June 30, 2020.
Cash Flows
For the six months ended June 30,
2021, net cash provided by operating activities was
$442.3 million, compared to
$47.0 million in the same period of
2020.
For the six months ended June 30,
2021, net cash used in investing activities was $255.4 million, compared to $60.4 million in the same period of 2020. The net
cash used in investing activities in 2021 and 2020 was primarily
related to the capital expenditures on the Company's polysilicon
expansion projects.
For the six months ended June 30,
2021, net cash used in financing activities was $37.1 million, compared to net cash provided by
financing activities of $16.2 million
in the same period of 2020. The net cash used in financing
activities in 2021 was primarily related to the repayment of bank
loans.
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
August 18, 2021. (8:00 PM Beijing / Hong
Kong time on the same day).
The dial-in details for the live conference call are as
follows:
Participant dial in
(toll free):
|
+1-888-346-8982
|
Participant
international dial in:
|
+1-412-902-4272
|
China mainland toll
free:
|
4001-201203
|
Hong Kong toll
free:
|
800-905945
|
Hong Kong-local
toll:
|
+852-301-84992
|
Participants please
dial in 10 minutes before the call is scheduled to begin and ask to
be joined into the Daqo New Energy Corp. call.
|
|
|
|
|
You can also listen to the conference call via Webcast through
the URL:
https://services.choruscall.com/links/dq210818.html
A replay of the call will be available 1 hour after the end of
the conference through August 25,
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:
|
10159546
|
To access the replay using an international dial-in number,
please select the link below.
https://services.choruscall.com/ccforms/replay.html
Participants will be required to state their name and company upon
entering the call.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a
leading manufacturer of high-purity polysilicon for the global
solar PV industry. Founded in 2007, the Company is one of the
world's lowest cost producers of high-purity polysilicon. It has a
total annual capacity of 70,000 metric tons of high-purity
polysilicon, with another 35,000 metric tons polysilicon capacity
under construction, which is expected to reach full capacity by the
end of the first quarter of 2022.
For more information, please visit www.dqsolar.com
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the second half and the full year of 2021 and
quotations from management in this announcement as well as Daqo New
Energy's strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the demand for photovoltaic products and the development
of photovoltaic technologies; global supply and demand for
polysilicon; alternative technologies in cell manufacturing; the
Company's ability to significantly expand its polysilicon
production capacity and output; the reduction in or elimination of
government subsidies and economic incentives for solar energy
applications; the Company's ability to lower its production costs;
and the duration of COVID-19 outbreaks in China and many other countries and the impact
of the outbreaks and the quarantines and travel restrictions
instituted by relevant governments on economic and market
conditions, including potentially weaker global demand for solar PV
installations that could adversely affect the Company's business
and financial performance. Further information regarding these and
other risks is included in the reports or documents the Company has
filed with, or furnished to, the U.S. Securities and Exchange
Commission. All information provided in this press release is as of
the date hereof, and the Company undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
Daqo New Energy
Corp.
|
Unaudited
Condensed Consolidated Statement of Operations and Comprehensive
Income
|
(US dollars in
thousands, except ADS and per ADS data)
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$441,368
|
|
$256,095
|
|
$133,518
|
|
$697,463
|
|
$302,349
|
Cost of
revenues
|
|
(138,133)
|
|
(137,151)
|
|
(110,820)
|
|
(275,284)
|
|
(223,097)
|
Gross
profit
|
|
303,235
|
|
118,944
|
|
22,698
|
|
422,179
|
|
79,252
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
expenses
|
|
(9,267)
|
|
(9,033)
|
|
(10,120)
|
|
(18,301)
|
|
(19,012)
|
Research and
development expenses
|
|
(2,101)
|
|
(1,197)
|
|
(1,958)
|
|
(3,299)
|
|
(3,612)
|
Other operating income
/ (expense)
|
|
549
|
|
479
|
|
133
|
|
1,028
|
|
(82)
|
Total operating
expenses
|
|
(10,819)
|
|
(9,751)
|
|
(11,945)
|
|
(20,572)
|
|
(22,706)
|
Income from
operations
|
|
292,416
|
|
109,193
|
|
10,753
|
|
401,607
|
|
56,546
|
Interest
expense
|
|
(7,224)
|
|
(7,825)
|
|
(6,653)
|
|
(15,049)
|
|
(12,940)
|
Interest
income
|
|
793
|
|
282
|
|
368
|
|
1,076
|
|
519
|
Income before income
taxes
|
|
285,985
|
|
101,650
|
|
4,468
|
|
387,634
|
|
44,125
|
Income tax
expense
|
|
(43,083)
|
|
(14,487)
|
|
(2,037)
|
|
(57,570)
|
|
(8,381)
|
Net income from
continuing operations
|
|
242,902
|
|
87,163
|
|
2,431
|
|
330,064
|
|
35,744
|
Loss from
discontinued operations, net of
tax
|
|
-
|
|
-
|
|
(55)
|
|
-
|
|
(141)
|
Net income
|
|
242,902
|
|
87,163
|
|
2,376
|
|
330,064
|
|
35,603
|
Net income / (loss)
attributable to non-
controlling interest
|
|
10,802
|
|
3,944
|
|
(7)
|
|
14,746
|
|
(10)
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
|
$232,100
|
|
$83,219
|
|
$2,383
|
|
$315,318
|
|
$35,613
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
242,902
|
|
87,163
|
|
2,376
|
|
330,064
|
|
35,603
|
Other comprehensive
income / (loss):
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
12,805
|
|
(3,857)
|
|
1,213
|
|
8,949
|
|
(8,606)
|
Total other
comprehensive income / (loss)
|
|
12,805
|
|
(3,857)
|
|
1,213
|
|
8,949
|
|
(8,606)
|
Comprehensive
income
|
|
255,707
|
|
83,306
|
|
3,589
|
|
339,013
|
|
26,997
|
Comprehensive income
/ (loss)
attributable to non-controlling interest
|
|
11,314
|
|
3,788
|
|
(6)
|
|
15,101
|
|
(15)
|
Comprehensive income
attributable to
Daqo New Energy Corp. shareholders
|
|
$244,393
|
|
$79,518
|
|
$3,595
|
|
$323,912
|
|
$27,012
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ADS*
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
3.15
|
|
1.13
|
|
0.03
|
|
4.29
|
|
0.51
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
Basic
|
|
3.15
|
|
1.13
|
|
0.03
|
|
4.29
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
- continuing
operations
|
|
3.03
|
|
1.08
|
|
0.03
|
|
4.11
|
|
0.47
|
- discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
Diluted
|
|
3.03
|
|
1.08
|
|
0.03
|
|
4.11
|
|
0.47
|
Weighted average ADS
outstanding*
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
73,714,734
|
|
73,338,969
|
|
70,546,207
|
|
73,522,256
|
|
70,212,474
|
Diluted
|
|
76,688,538
|
|
76,744,468
|
|
76,270,603
|
|
76,745,282
|
|
76,245,947
|
Daqo New Energy
Corp.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
227,148
|
|
167,049
|
|
88,215
|
|
Restricted
cash
|
|
42,576
|
|
60,800
|
|
27,551
|
|
Short-term
investment
|
|
10,403
|
|
7,631
|
|
-
|
|
Accounts receivable,
net
|
|
-
|
|
18
|
|
65
|
|
Notes
receivable
|
|
96,977
|
|
38,547
|
|
8,163
|
|
Prepaid expenses and
other current assets
|
|
13,170
|
|
9,857
|
|
13,476
|
|
Advances to
suppliers
|
|
5,630
|
|
5,468
|
|
6,712
|
|
Inventories
|
|
33,815
|
|
34,064
|
|
26,824
|
|
Amount due from related
parties
|
|
-
|
|
-
|
|
12
|
|
Current assets
associated with discontinued
operation
|
|
-
|
|
-
|
|
667
|
|
Total current
assets
|
|
429,719
|
|
323,434
|
|
171,685
|
|
Property, plant and
equipment, net
|
|
1,217,524
|
|
1,081,352
|
|
956,675
|
|
Prepaid land use
right
|
|
37,020
|
|
30,534
|
|
28,826
|
|
Amount due from related
parties – long term
portion
|
|
31,568
|
|
-
|
|
-
|
|
Deferred tax
assets
|
|
-
|
|
-
|
|
1,332
|
|
Investment in
affiliate
|
|
692
|
|
682
|
|
633
|
|
Operating lease
right-of-use assets
|
|
73
|
|
96
|
|
153
|
|
Other non-current
assets
|
|
155
|
|
3,016
|
|
-
|
|
Non-current asset
associated with discontinued
operation
|
|
-
|
|
-
|
|
181
|
|
TOTAL
ASSETS
|
|
1,716,751
|
|
1,439,114
|
|
1,159,485
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
borrowings, including current portion
of long-term borrowings
|
|
85,661
|
|
121,822
|
|
147,839
|
|
Accounts
payable
|
|
18,303
|
|
17,848
|
|
18,833
|
|
Notes
payable
|
|
42,542
|
|
60,774
|
|
49,143
|
|
Advances from
customers-short term portion
|
|
115,856
|
|
64,640
|
|
23,500
|
|
Payables for purchases
of property, plant and
equipment
|
|
36,018
|
|
34,778
|
|
97,239
|
|
Accrued expenses and
other current liabilities
|
|
47,140
|
|
24,632
|
|
18,262
|
|
Amount due to related
parties
|
|
4,812
|
|
4,889
|
|
8,169
|
|
Income tax
payable
|
|
44,933
|
|
18,087
|
|
4,414
|
|
Lease liabilities -
short term portion
|
|
-
|
|
83
|
|
74
|
|
Current liabilities
associated with discontinued
operation
|
|
-
|
|
-
|
|
877
|
|
Total current
liabilities
|
|
395,265
|
|
347,553
|
|
368,350
|
|
Long-term
borrowings
|
|
70,948
|
|
100,422
|
|
116,911
|
|
Advance from customers
– long term portion
|
|
78,212
|
|
77,494
|
|
1,132
|
|
Amount due to related
parties - long term
portion
|
|
4,385
|
|
4,272
|
|
16,247
|
|
Deferred government
subsidies
|
|
22,106
|
|
21,629
|
|
20,067
|
|
Deferred Tax
Liabilities
|
|
2,526
|
|
2,505
|
|
5,459
|
|
TOTAL
LIABILITIES
|
|
573,442
|
|
553,875
|
|
528,166
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
37
|
|
37
|
|
36
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
417,830
|
|
415,467
|
|
396,445
|
|
Retained
earnings
|
|
645,436
|
|
413,337
|
|
236,535
|
|
Accumulated other
comprehensive income/(loss)
|
|
34,861
|
|
22,567
|
|
(28,538)
|
|
Total Daqo New Energy
Corp. shareholders'
equity
|
|
1,096,415
|
|
849,659
|
|
602,729
|
|
Non-controlling
interest
|
|
46,894
|
|
35,580
|
|
28,590
|
|
Total
equity
|
|
1,143,309
|
|
885,239
|
|
631,319
|
|
TOTAL LIABILITIES
& EQUITY
|
|
1,716,751
|
|
1,439,114
|
|
1,159,485
|
|
Daqo New Energy
Corp.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(US dollars in
thousands)
|
|
|
For the six months
ended Jun 30,
|
|
|
2021
|
|
2020
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
330,064
|
|
35,603
|
|
Less: Loss from
discontinued operations, net of tax
|
|
-
|
|
(141)
|
|
Net income from
continuing operations
|
|
330,064
|
|
35,744
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
44,106
|
|
44,865
|
|
Changes in operating
assets and liabilities
|
|
68,083
|
|
(33,599)
|
|
Net cash provided by
operating activities-continuing operations
|
|
442,253
|
|
47,010
|
|
Net cash used in
operation activities-discontinued operations
|
|
-
|
|
(50)
|
|
Net cash provided by
operating activities
|
|
442,253
|
|
46,960
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Net cash used in
investing activities-continuing operations
|
|
(255,449)
|
|
(60,195)
|
|
Net cash used in
investing activities-discontinuing operations
|
|
-
|
|
(195)
|
|
Net cash used in
investing activities
|
|
(255,449)
|
|
(60,390)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Net cash (used in) /
provided by financing activities – continuing operations
|
|
(37,056)
|
|
16,292
|
|
Net cash used in
financing activities – discontinued operations
|
|
-
|
|
(64)
|
|
Net cash (used in) /
provided by financing activities
|
|
(37,056)
|
|
16,228
|
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
1,572
|
|
(1,667)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
151,320
|
|
1,131
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
|
118,404
|
|
115,294
|
|
Cash, cash
equivalents and restricted cash at the end of the period
|
|
269,724
|
|
116,425
|
|
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.
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
Cash and cash
equivalents
|
|
227,148
|
|
88,874
|
Restricted
cash
|
|
42,576
|
|
27,551
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
269,724
|
|
116,425
|
Daqo New Energy
Corp.
|
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
|
(US dollars in
thousands)
|
|
|
Three months
Ended
|
Six months
Ended
|
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
Net income
from continuing operation
|
|
242,902
|
|
87,163
|
|
2,431
|
|
330,064
|
|
35,744
|
Income tax
expense
|
|
43,083
|
|
14,487
|
|
2,037
|
|
57,570
|
|
8,381
|
Interest
expense
|
|
7,224
|
|
7,825
|
|
6,653
|
|
15,049
|
|
12,940
|
Interest
income
|
|
(793)
|
|
(282)
|
|
(368)
|
|
(1,076)
|
|
(519)
|
Depreciation &
Amortization
|
|
19,322
|
|
18,914
|
|
16,004
|
|
38,236
|
|
33,279
|
EBITDA from continuing operation
(non-GAAP)
|
|
311,738
|
|
128,107
|
|
26,757
|
|
439,843
|
|
89,825
|
EBITDA margin
from continuing operation (non-GAAP)
|
|
70.6%
|
|
50.0%
|
|
20.0%
|
|
63.1%
|
|
29.7%
|
|
Three months
Ended
|
Six months
Ended
|
|
|
Jun 30,
2021
|
|
Mar. 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
232,100
|
|
83,219
|
|
2,383
|
|
315,318
|
|
35,613
|
Share-based
compensation
|
|
2,358
|
|
3,001
|
|
4,491
|
|
5,359
|
|
8,952
|
Adjusted net
income (non-GAAP) attributable to Daqo
New Energy Corp. shareholders
|
|
234,458
|
|
86,220
|
|
6,874
|
|
320,677
|
|
44,565
|
Adjusted earnings
per basic ADS* (non-GAAP)
|
|
$3.18
|
|
$1.18
|
|
$0.10
|
|
$4.36
|
|
$0.63
|
Adjusted earnings
per diluted ADS* (non-GAAP)
|
|
$3.06
|
|
$1.12
|
|
$0.09
|
|
$4.18
|
|
$0.58
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Email: dqir@daqo.com
Christensen
In China
Mr. Rene Vanguestaine
Phone: +86-10- 5900-1548
E-mail: rvanguestaine@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information, please visit www.dqsolar.com
View original
content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-second-quarter-2021-results-301357730.html
SOURCE Daqo New Energy Corp.