CHONGQING, China, May 9, 2017 /PRNewswire/ -- Daqo New Energy Corp.
(NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading
manufacturer of high-purity polysilicon for the global solar PV
industry, today announced its unaudited financial results for the
first quarter of 2017.
First Quarter 2017 Financial and Operating Highlights
- Polysilicon production volume of 4,927 MT in Q1 2017, an
increase of 100.6% from 2,456 MT in Q4 2016
- Polysilicon external sales volume(1) of 4,223 MT in
Q1 2017, an increase of 91.2% from 2,209 MT in Q4 2016
- Polysilicon average total production cost(2) of
$8.41/kg in Q1 2017, decreased from
$9.98/kg in Q4 2016
- Polysilicon average cash cost(2) of $6.68/kg in Q1 2017, decreased from $7.34/kg in Q4 2016
- Average selling price (ASP) of polysilicon was $16.66/kg in Q1 2017, increased from $14.96/kg in Q4 2016
- Solar wafer sales volume of 22.4 million pieces in Q1 2017,
increased from 21.3 million pieces in Q4 2016
- Revenue of $83.8 million in Q1
2017, an increase of 81.8% from $46.1
million in Q4 2016
- Gross profit of $35.9 million in
Q1 2017, an increase of 152.8% from $14.2
million in Q4 2016
- Gross margin of 42.8% in Q1 2017, increased from 30.7% in Q4
2016
- Non-GAAP gross margin(3) of 44.0% in Q1 2017,
increased from 34.1% in Q4 2016
- EBITDA (non-GAAP)(3) of $41.7
million in Q1 2017, an increase of 136.9% from $17.6 million in Q4 2016
- EBITDA margin (non-GAAP)(3) of 49.8% in Q1 2017,
increased from 38.3% in Q4 2016
- Net income attributable to Daqo New Energy shareholders of
$22.9 million in Q1 2017, increased
from $4.1 million in Q4 2016 and
$8.3 million in Q1 2016
- Earnings per basic ADS of $2.18
in Q1 2017, increased from $0.39 in
Q4 2016, and $0.80 in Q1 2016
- Adjusted net income (non-GAAP)(3) attributable to
Daqo New Energy shareholders of $24.8
million in Q1 2017, increased from $6.2 million in Q4 2016 and $11.7 million in Q1 2016
- Adjusted earnings per basic ADS (non-GAAP)(3) of
$2.36 in Q1 2017, increased from
$0.59 in Q4 2016, and $1.12 in Q1 2016
|
Three months
ended
|
US$
millions except as indicated
otherwise
|
March
31, 2017
|
December 31,
2016
|
March
31, 2016
|
Revenues
|
83.8
|
46.1
|
57.7
|
Gross
profit
|
35.9
|
14.2
|
16.7
|
Gross
margin
|
42.8%
|
30.7%
|
29.0%
|
Operating
income
|
32.2
|
9.6
|
13.3
|
Net income
attributable to Daqo New
Energy Corp. shareholders
|
22.9
|
4.1
|
8.3
|
Earnings per basic ADS
($ per ADS)
|
2.18
|
0.39
|
0.80
|
Adjusted net income
(non-GAAP)(3)
attributable to Daqo New Energy Corp.
shareholders
|
24.8
|
6.2
|
11.7
|
Adjusted earnings per
basic ADS (non-GAAP)(3)
($ per ADS)
|
2.36
|
0.59
|
1.12
|
Non-GAAP gross
profit(3)
|
36.9
|
15.8
|
18.8
|
Non-GAAP gross
margin(3) (%)
|
44.0%
|
34.1%
|
32.6%
|
EBITDA
(non-GAAP)(3)
|
41.7
|
17.6
|
21.9
|
EBITDA
margin(3) (non-GAAP)
|
49.8%
|
38.3%
|
38.0%
|
Polysilicon sales
volume (MT) (1)
|
4,223
|
2,209
|
2,905
|
Polysilicon production
cost ($/kg)(2)
|
8.41
|
9.98
|
9.65
|
Polysilicon cash cost
(excl. dep'n) ($/kg)(2)
|
6.68
|
7.34
|
7.62
|
|
Notes:
(1) Our
polysilicon external sales volume excludes internal sales to our
Chongqing wafer manufacturing subsidiary, which utilizes
polysilicon as raw material for the production of solar wafers. The
sales volume is the quantity of goods that have been accepted by
customers, and thus the corresponding revenue has been recognized
during the period indicated.
(2) Production cost and cash cost only
refer to production in our Xinjiang polysilicon facilities.
Production cost is calculated by the inventoriable costs relating
to production of polysilicon in Xinjiang divided by the production
volume in the period indicted. Cash cost is calculated by the
inventoriable costs relating to production of polysilicon excluding
depreciation expense in Xinjiang, divided by the production volume
in the period indicated.
(3) Daqo
New Energy provides non-GAAP gross profit, non-GAAP gross margin,
EBITDA, EBITDA margin, adjusted net income (loss) attributable to
Daqo New Energy Corp. shareholders and adjusted earnings (loss) 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.
|
Commentary
"We are pleased with the strong financial and operating results
we achieved for the first quarter of 2017. I would like to
thank our entire Xinjiang polysilicon team for their great efforts
to make the first quarter of 2017 our best quarter ever in terms of
cost structure, production volume and polysilicon quality. During
the quarter, we fully ramped up our Xinjiang polysilicon facility
to 18,000 MT annual capacity and achieved full production. Our
capacity ramp-up progressed ahead of schedule. We produced
4,927 MT of polysilicon in the first quarter of 2017, an increase
of 100.6% as compared to the fourth quarter of 2016. While
achieving a substantial increase in sequential polysilicon
production volume, we also saw strong demand for our high quality
products from our customers, and achieved the highest sales volume
in the Company's history with market share gain," said Dr. Gongda
Yao, Chief Executive Officer of Daqo New Energy.
"Polysilicon market demand weakened towards the end of March,
resulting in inventory build-up across the industry with price
adjustments reflecting the weakness. We saw market conditions
stabilizing towards the end of April with strong demand recovery,
as industry poly inventory re-adjusted to a healthy level.
Polysilicon pricing also improved meaningfully in late April, with
robust customer demand for our high quality polysilicon
product. Based on industry forecast, the global PV
installations is expected to be approximately 75-80GW for 2017,
compared to approximately 75-78GW for 2016. Overall, the
annual PV volume demand for this year is anticipated to be rather
evenly spread between the first and the second half of the
year. While the PV end market demand environment is very
dynamic and may lead to polysilicon ASP volatility, we believe
overall volume demand for the year is solid and healthy. Our
cost leadership should help the Company to weather through the
market volatility."
"During the quarter, we also achieved the lowest ever cost
structure with total production cost of $8.41/kg and cash cost of $6.68/kg. With our lower production cost, the
company generated $22.9 million in
net income attributable to Daqo New Energy shareholders and
$41.7 million in EBITDA with EBITDA
margin of 49.8%. In addition, thanks to various quality
improvement projects we initiated starting from the second half of
last year, the first quarter of 2017 was the best quarter in our
history in terms of product quality."
"Going forward, we will continue to focus our efforts on cost
reduction. We have identified several cost reduction
opportunities, which should allow us to continue to reduce our
cost. At the same time, we continue to pursue various
programs and initiatives on polysilicon quality improvement, which
will help the company to meet the growing demand for
ultra-high-purity polysilicon, such as demand from mono-crystalline
wafer manufacturers and potentially even manufacturers of
semiconductor wafer applications. These initiatives should increase
our corporate flexibility and reinforce our competitive position as
one of the leading polysilicon suppliers in China, which will allow us to take advantage
of additional opportunities in 2017 and beyond."
Outlook and Q2 2017 guidance
The Company expects to produce 4,800 MT to 5,000 MT of
polysilicon and sell approximately 4,200 MT to 4,500 MT to external
customers during the second quarter of 2017. The above
external sales guidance excludes shipments of polysilicon to be
used internally by our Chongqing
solar wafer facility, which utilizes polysilicon for its wafer
manufacturing operation. Wafer sales volume is expected to be
approximately 23.5 million to 24 million pieces in the second
quarter of 2017.
This outlook reflects our current and preliminary view as of the
date of this press release and may be subject to change. Our
ability to achieve these projections is subject to risks and
uncertainties. See "Safe Harbor Statement" at the end of this press
release.
First Quarter 2017 Results
Revenues
Revenues were $83.8 million, an
increase of 81.8% from $46.1 million
in the fourth quarter of 2016 and 45.3% from $57.7 million in the first quarter of 2016.
Revenues from polysilicon sales to external customers were
$70.4 million, an increase of 114.6%
from $32.8 million in the fourth
quarter of 2016 and 76.4% from $39.9
million in the first quarter of 2016. External polysilicon
sales volume was 4,223 MT, an increase of 91.2% from 2,209 MT in
the fourth quarter of 2016 and 45.4% from 2,905 MT in the first
quarter of 2016. The average selling price (ASP) of polysilicon was
$16.66/kg in Q1 2017, an increase of
11.4% from $14.96/kg in Q4 2016. The
increase in polysilicon revenues as compared to the fourth quarter
of 2016 was primarily due to higher polysilicon sales volume and
higher ASPs.
Revenues from wafer sales were $13.4
million, compared to $13.4
million in the fourth quarter of 2016 and $17.8 million in the first quarter of 2016. Wafer
sales volume was 22.4 million pieces, compared to 21.3 million
pieces in the fourth quarter of 2016 and 22.1 million pieces in the
first quarter of 2016.
Gross profit and margin
Gross profit was approximately $35.9
million, an increase of 152.8% from $14.2 million in the fourth quarter of 2016 and
115.0% from $16.7 million in the
first quarter of 2016. Non-GAAP gross profit, which excludes costs
related to the non-operational polysilicon assets in Chongqing, was approximately $36.9 million, an increase of 133.5% from
$15.8 million in the fourth quarter
of 2016 and 95.2% from $18.8 million
in the first quarter of 2016.
Gross margin was 42.8%, increased from 30.7% in the fourth
quarter of 2016 and 29.0% in the first quarter of 2016. The
increase in gross margin as compared to the fourth quarter of 2016
was primarily due to higher quarterly polysilicon ASPs and lower
polysilicon production cost.
In the first quarter of 2017, total costs related to the
non-operational Chongqing
polysilicon assets including depreciation were $1.0 million, decreased from $1.6 million in the fourth quarter of 2016 and
$2.0 million in the first quarter of
2016. As we have already relocated the majority of the idle
equipments from our Chongqing site
to Xinjiang site and successfully reutilized them in our capacity
expansion projects, the total costs related to the non-operational
Chongqing polysilicon assets have
been significantly reduced. In the near future, we expect such
costs will remain at a level that is similar to that in Q1 2017.
Excluding costs related to the non-operational Chongqing polysilicon assets, the non-GAAP
gross margin was approximately 44.0%, increased from 34.1% in the
fourth quarter of 2016 and 32.6% in the first quarter of 2016.
Selling, general and administrative expenses
Selling, general and administrative expenses were $4.1 million, compared to $3.5 million in the fourth quarter of 2016 and
$4.1 million in the first quarter of
2016.
Research and development expenses
Research and development expenses were approximately
$0.4 million, compared to
$2.8 million in the fourth quarter of
2016 and $0.1 million in the first
quarter of 2016. The research and development expenses fluctuate
from period to period according to the R&D activities occur in
such period.
Other operating income
Other operating income was $0.8
million, compared to $1.9
million in the fourth quarter of 2016 and $0.7 million in the first quarter of 2016. Other
operating income was mainly composed of unrestricted cash
incentives that the Company received from local government
authorities, the amount of which varies from period to period.
Operating income and margin
As a result of the foregoing, operating income was $32.2 million, an increase of 235.4% from
$9.6 million in the fourth quarter of
2016 and 142.1% from $13.3 million in
the first quarter of 2016.
Operating margin was 38.4%, increased from 20.7% in the fourth
quarter of 2016 and 23.1% in the first quarter of 2016.
Interest expense
Interest expense was $4.3 million,
compared to $4.1 million in the
fourth quarter of 2016 and $3.9
million in the first quarter of 2016.
EBITDA
EBITDA was $41.7 million, an
increase of 136.9% from $17.6 million
in the fourth quarter of 2016 and 90.4% from $21.9 million in the first quarter of 2016.
EBITDA margin was 49.8%, increased from 38.3% in the fourth quarter
of 2016 and 38.0% in the first quarter of 2016.
Net income attributable to Daqo New Energy Corp.
shareholders and earnings per ADS
Net income attributable to Daqo New Energy Corp. shareholders
was $22.9 million in the first
quarter of 2017, increased from $4.1
million in the fourth quarter of 2016 and $8.3 million in the first quarter of 2016.
Earnings per basic ADS were $2.18,
increased from $0.39 in the fourth
quarter of 2016 and $0.80 in the
first quarter of 2016.
Financial Condition
As of March 31, 2017, the Company
had $61.2 million in cash and cash
equivalents and restricted cash, compared to $31.9 million as of December 31, 2016 and $35.7 million as of March
31, 2016. As of March 31,
2017, the accounts receivable balance was $13.1 million, compared to $4.8 million as of December 31, 2016. As of March 31, 2017, the notes receivable balance was
$11.7 million, compared to
$13.0 million as of December 31, 2016. As of March 31, 2017, total borrowings were
$236.0 million, of which $129.2 million were long-term borrowings,
compared to total borrowings of $217.9
million, including $111.9
million long-term borrowings, as of December 31, 2016.
Cash Flows
For the three months ended March 31,
2017, net cash provided by operating activities was
$28.6 million, increased from
$22.5 million in the same period of
2016.
For the three months ended March 31,
2017, net cash used in investing activities was $16.6 million, compared to $17.5 million in the same period of 2016. The net
cash used in investing activities in 2017 was primarily related to
the capital expenditure of Xinjiang Phase 3A polysilicon
projects.
For the three months ended March 31,
2017, net cash provided by financing activities was
$16.5 million, compared to net cash
used in financing activities of $3.3
million in the same period of 2016. The increase was
primarily due to drawdown of long-term project 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 non-GAAP
gross profit and non-GAAP gross margin; 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 ADS. Management
believes that each of these non-GAAP measures is useful to
investors, enabling them to better assess changes in key elements
of the Company's results of operations across different reporting
periods on a consistent basis, independent of certain items as
described below. Thus, management believes that, used in
conjunction with US GAAP financial measures, these non-GAAP
financial measures provide investors with meaningful supplemental
information to assess the Company's operating results in a manner
that is focused on its ongoing, core operating performance.
Management uses these non-GAAP measures internally to assess the
business, its financial performance, current and historical
results, as well as for strategic decision-making and forecasting
future results. Given management's use of these non-GAAP
measures, the Company believes these measures are important to
investors in understanding the Company's operating results as seen
through the eyes of management. These non-GAAP measures are
not prepared in accordance with US GAAP or intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with US GAAP; the
non-GAAP measures should be reviewed together with the US GAAP
measures, and may be different from non-GAAP measures used by other
companies.
Non-GAAP gross profit and non-GAAP gross margin includes
adjustments for costs related to the non-operational polysilicon
assets in Chongqing. Such costs
mainly consist of non-cash depreciation costs, as well as utilities
and maintenance costs associated with the temporarily idle
polysilicon machinery and equipment, which will be or are in the
process of being relocated to the Company's Xinjiang polysilicon
manufacturing facility. The Company expects a majority of these
costs, such as depreciation, will continue to occur as part of the
production cost at the Xinjiang facilities subsequent to the
completion of the relocation plan. Once these assets are placed
back in service, the Company will remove this adjustment from the
non-GAAP reconciling item. The Company also uses EBITDA, which
represents earnings before interest, taxes, depreciation and
amortization, and EBITDA margin, which represents the proportion of
EBITDA in revenues. Adjusted net income attributable to Daqo
New Energy Corp. shareholders and adjusted earnings per basic ADS
exclude costs related to the non-operational polysilicon assets in
Chongqing as described
above. Adjusted net income attributable to Daqo New Energy
Corp. shareholders and adjusted earnings per basic ADS also exclude
costs related to share-based compensation. Share-based compensation
is a non-cash expense that varies from period to period. As a
result, management excludes this item from its internal operating
forecasts and models. Management believes that this adjustment for
share-based compensation provides investors with a basis to measure
the company's core performance, including compared with the
performance of other companies, without the period-to-period
variability created by share-based compensation.
A reconciliation of non-GAAP financial measures to comparable US
GAAP measures is presented later in this document.
Conference Call
The Company has scheduled a conference call to discuss the
results at 8:00 AM U.S. Eastern Time
on May 9, 2017 (8:00 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 dial
in:
|
+852-301-84992
|
Participants please ask to be joined into the Daqo New Energy
Corp. call. Please dial in 10 minutes before the call is scheduled
to begin.
You can also listen to the conference call via Webcast through
the URL:
http://mms.prnasia.com/DQ/20170509/default.aspx
A replay of the call will be available 1 hour after the
conclusion of the conference call through May 16, 2017.
The dial in details for the conference call replay are as
follows:
U.S. toll free:
|
+1-877-344-7529
|
International dial
in:
|
+1-412-317-0088
|
Canada toll
free:
|
855-669-9658
|
Replay access
code:
|
10106374
|
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 asked to provide their name and company
name upon entering the call.
About Daqo New Energy Corp.
Founded in 2008, Daqo New Energy Corp. (NYSE: DQ) is a leading
manufacturer of high-purity polysilicon for the global solar PV
industry. As one of the world's lowest cost producers of
high-purity polysilicon and solar wafers, the Company primarily
sells its products to solar cell and solar module manufacturers.
The Company has built a manufacturing facility that is technically
advanced and highly efficient with a nameplate capacity of 18,000
metric tons in Xinjiang, China. The Company also operates a
solar wafer manufacturing facility in Chongqing, China.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the second quarter of 2017 and quotations from
management in this announcement, as well as Daqo New Energy's
strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the demand for photovoltaic products and the development
of photovoltaic technologies; global supply and demand for
polysilicon; alternative technologies in cell manufacturing; our
ability to significantly expand our polysilicon production capacity
and output; the reduction in or elimination of government subsidies
and economic incentives for solar energy applications; and our
ability to lower our production costs. Further information
regarding these and other risks is included in the reports or
documents we have filed with, or furnished to, the Securities and
Exchange Commission. Daqo New Energy does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and Daqo New Energy undertakes no duty to update
such information, except as required under applicable law.
Daqo New Energy
Corp.
Unaudited
Consolidated Statement of Operations and Comprehensive
Income
(US dollars in
thousands, except ADS and per ADS data)
|
|
|
For the three
months Ended
|
|
|
Mar 31,
2017
|
|
Dec 31,
2016
|
|
Mar 31,
2016
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$83,808
|
|
$46,116
|
|
$57,676
|
|
Cost of
revenues
|
|
(47,914)
|
|
(31,941)
|
|
(40,940)
|
|
Gross
profit
|
|
35,894
|
|
14,175
|
|
16,736
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(4,060)
|
|
(3,512)
|
|
(4,059)
|
|
Research and
development expenses
|
|
(448)
|
|
(2,775)
|
|
(82)
|
|
Other operating
income
|
|
775
|
|
1,862
|
|
715
|
|
Impairment of
long-lived assets
|
|
-
|
|
(199)
|
|
-
|
|
Total operating
expenses
|
|
(3,733)
|
|
(4,624)
|
|
(3,426)
|
|
Income from
operations
|
|
32,161
|
|
9,551
|
|
13,310
|
|
Interest
expense
|
|
(4,344)
|
|
(4,099)
|
|
(3,905)
|
|
Interest
income
|
|
75
|
|
17
|
|
96
|
|
Foreign exchange gain
(loss)
|
|
1
|
|
(4)
|
|
1
|
|
Income before income
taxes
|
|
27,893
|
|
5,465
|
|
9,502
|
|
Income tax
expense
|
|
(4,742)
|
|
(1,281)
|
|
(1,112)
|
|
Net income
|
|
23,151
|
|
4,184
|
|
8,390
|
|
Net income
attributable to noncontrolling interest
|
|
257
|
|
55
|
|
65
|
|
Net income
attributable to Daqo New Energy Corp.
shareholders
|
|
$22,894
|
|
$4,129
|
|
$8,325
|
|
|
|
|
|
|
|
|
|
Net income
|
|
23,151
|
|
4,184
|
|
8,390
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
2,166
|
|
(10,625)
|
|
2,018
|
|
Total other
comprehensive income (loss)
|
|
2,166
|
|
(10,625)
|
|
2,018
|
|
Comprehensive income
(loss)
|
|
25,317
|
|
(6,441)
|
|
10,408
|
|
Comprehensive income
(loss) attributable to
noncontrolling interest
|
|
270
|
|
(9)
|
|
76
|
|
Comprehensive income
(loss) attributable to
Daqo New Energy Corp. shareholders
|
|
$25,047
|
|
($6,432)
|
|
$10,332
|
|
|
|
|
|
|
|
|
|
Income per
ADS
|
|
|
|
|
|
|
|
Basic
|
|
2.18
|
|
0.39
|
|
0.80
|
|
Diluted
|
|
2.14
|
|
0.39
|
|
0.79
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
|
10,519,425
|
|
10,508,261
|
|
10,434,199
|
|
Diluted
|
|
10,691,911
|
|
10,642,404
|
|
10,552,339
|
|
Daqo New Energy
Corp.
Unaudited
Consolidated Balance Sheet
(US dollars in
thousands)
|
|
|
|
|
|
|
Mar 31,
2017
|
|
Dec 31,
2016
|
|
Mar 31,
2016
|
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$44,651
|
|
$15,987
|
|
$16,349
|
|
Restricted
cash
|
|
16,596
|
|
15,893
|
|
19,380
|
|
Accounts receivable,
net
|
|
13,121
|
|
4,836
|
|
15,396
|
|
Notes
Receivable
|
|
11,702
|
|
13,026
|
|
25,273
|
|
Prepaid expenses and
other current assets
|
|
6,069
|
|
8,028
|
|
8,212
|
|
Advances to
suppliers
|
|
1,283
|
|
1,723
|
|
1,028
|
|
Inventories
|
|
16,268
|
|
12,281
|
|
10,868
|
|
Amount due from related
party
|
|
345
|
|
1,529
|
|
1,499
|
|
Total current
assets
|
|
110,035
|
|
73,303
|
|
98,005
|
|
Property, plant and
equipment, net
|
|
559,900
|
|
557,428
|
|
546,431
|
|
Prepaid land use
right
|
|
24,871
|
|
24,810
|
|
27,185
|
|
Deferred tax
assets
|
|
591
|
|
586
|
|
632
|
|
Investment accounted
for under cost-method
|
|
586
|
|
582
|
|
188
|
|
TOTAL
ASSETS
|
|
695,983
|
|
656,709
|
|
672,441
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term borrowings,
including current portion
of long-term borrowings
|
|
106,842
|
|
105,980
|
|
126,461
|
|
Accounts
payable
|
|
23,130
|
|
18,745
|
|
18,309
|
|
Notes
payable
|
|
23,749
|
|
25,732
|
|
28,140
|
|
Advances from
customers
|
|
1,025
|
|
7,520
|
|
7,724
|
|
Payables for purchases
of property, plant and
equipment
|
|
39,367
|
|
51,323
|
|
41,379
|
|
Accrued expenses and
other current liabilities
|
|
11,417
|
|
8,320
|
|
8,937
|
|
Amount due to related
parties
|
|
32,925
|
|
26,830
|
|
46,689
|
|
Income tax
payable
|
|
7,095
|
|
5,300
|
|
1,190
|
|
Total current
liabilities
|
|
245,550
|
|
249,750
|
|
278,829
|
|
Long-term
borrowings
|
|
129,198
|
|
111,949
|
|
114,824
|
|
Other long Term
Liabilities
|
|
23,304
|
|
23,280
|
|
25,276
|
|
TOTAL
LIABILITIES
|
|
398,052
|
|
384,979
|
|
418,929
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
27
|
|
27
|
|
26
|
|
Treasury
stock
|
|
(1,749)
|
|
(1,749)
|
|
(1,749)
|
|
Additional paid-in
capital
|
|
240,996
|
|
240,112
|
|
237,806
|
|
Retained
earnings
|
|
63,326
|
|
40,432
|
|
5,264
|
|
Accumulated other
comprehensive income
|
|
(6,569)
|
|
(8,721)
|
|
10,787
|
|
Total Daqo New Energy
Corp.'s shareholders' equity
|
|
296,031
|
|
270,101
|
|
252,134
|
|
Noncontrolling
interest
|
|
1,900
|
|
1,629
|
|
1,378
|
|
Total
equity
|
|
297,931
|
|
271,730
|
|
253,512
|
|
TOTAL LIABILITIES
& EQUITY
|
|
695,983
|
|
656,709
|
|
672,441
|
|
|
|
|
|
|
|
|
|
Daqo New Energy
Corp.
Unaudited
Consolidated Statements of Cash Flows
(US dollars in
thousands)
|
|
|
For the three
months ended March 31,
|
|
|
2017
|
|
2016
|
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
|
23,150
|
|
8,390
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Share-based
compensation
|
|
882
|
|
1,344
|
|
Provision/(reversal) of allowance for doubtful accounts
|
|
-
|
|
(375)
|
|
Depreciation of
property, plant and equipment
|
|
9,587
|
|
8,607
|
|
Loss on disposal
of assets
|
|
23
|
|
-
|
|
|
|
|
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(8,245)
|
|
4,984
|
|
Notes
receivable
|
|
1,430
|
|
(14,076)
|
|
Prepaid expenses
and other current assets
|
|
2,024
|
|
4,119
|
|
Advances to
suppliers
|
|
454
|
|
8
|
|
Inventories
|
|
(3,888)
|
|
(68)
|
|
Amounts due from
related parties
|
|
1,203
|
|
(1,192)
|
|
Amounts due to
related parties
|
|
411
|
|
259
|
|
Prepaid land use
rights
|
|
140
|
|
150
|
|
Accounts
payable
|
|
4,233
|
|
680
|
|
Notes
payable
|
|
(823)
|
|
9,884
|
|
Accrued expenses
and other current liabilities
|
|
3,029
|
|
253
|
|
Income tax
payable
|
|
1,752
|
|
249
|
|
Advances from
customers
|
|
(6,556)
|
|
(523)
|
|
Deferred
government subsidies
|
|
(165)
|
|
(175)
|
|
Net cash provided by
operating activities
|
|
28,641
|
|
22,518
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(15,989)
|
|
(17,114)
|
|
Investment accounted
for under the cost-method
|
|
-
|
|
(188)
|
|
Increase in restricted
cash
|
|
(574)
|
|
(168)
|
|
Net cash used in
investing activities
|
|
(16,563)
|
|
(17,470)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Proceeds from related
party loans
|
|
32,824
|
|
23,878
|
|
Repayment of related
party loans
|
|
(32,687)
|
|
(24,208)
|
|
Proceeds from bank
borrowings
|
|
30,856
|
|
-
|
|
Repayment of bank
borrowings
|
|
(14,517)
|
|
(3,058)
|
|
Cash received from
exercises of options
|
|
3
|
|
104
|
|
Net cash (used in)
provided by financing activities
|
|
16,479
|
|
(3,284)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
107
|
|
95
|
|
Net increase in cash
and cash equivalents
|
|
28,664
|
|
1,859
|
|
Cash and cash
equivalents at the beginning of the period
|
|
15,987
|
|
14,490
|
|
Cash and cash
equivalents at the end of the period
|
|
44,651
|
|
16,349
|
|
Daqo New Energy
Corp.
Reconciliation of
non-GAAP financial measures to comparable US GAAP
measures
(US dollars in
thousands)
|
|
|
For the three
months ended
|
|
|
Mar. 31,
2017
|
|
Dec. 31,
2016
|
|
Mar. 31,
2016
|
|
Gross profit
|
|
35,894
|
|
14,175
|
|
16,736
|
|
Costs related to the
non-operational
Chongqing polysilicon operations
|
|
1,003
|
|
1,588
|
|
2,049
|
|
Non-GAAP gross
profit
|
|
36,897
|
|
15,763
|
|
18,785
|
|
|
|
For the three
months ended
|
|
|
Mar. 31,
2017
|
|
Dec. 31,
2016
|
|
Mar. 31,
2016
|
|
Gross
margin
|
|
42.8%
|
|
30.7%
|
|
29.0%
|
|
Costs related to the
non-operational
Chongqing polysilicon operations
(proportion of revenue)
|
|
1.2%
|
|
3.4%
|
|
3.6%
|
|
Non-GAAP gross
margin
|
|
44.0%
|
|
34.1%
|
|
32.6%
|
|
|
|
For the three
months ended
|
|
|
Mar. 31,
2017
|
|
Dec. 31,
2016
|
|
Mar. 31,
2016
|
|
Net
income
|
|
23,151
|
|
4,184
|
|
8,390
|
|
Income tax
expense
|
|
4,742
|
|
1,281
|
|
1,112
|
|
Interest
expense
|
|
4,344
|
|
4,099
|
|
3,905
|
|
Interest
income
|
|
(75)
|
|
(17)
|
|
(96)
|
|
Depreciation
|
|
9,587
|
|
8,095
|
|
8,607
|
|
EBITDA
(non-GAAP)
|
|
41,749
|
|
17,642
|
|
21,918
|
|
EBIDTA margin
(non-GAAP)
|
|
49.8%
|
|
38.3%
|
|
38.0%
|
|
|
|
For the three
months ended
|
|
|
Mar. 31,
2017
|
|
Dec. 31,
2016
|
|
Mar. 31,
2016
|
|
Net income
attributable to
Daqo New Energy Corp.
shareholders
|
|
22,894
|
|
4,129
|
|
8,325
|
|
Costs related to the
non-operational
Chongqing polysilicon operations
|
|
1,003
|
|
1,588
|
|
2,049
|
|
Share-based
compensation
|
|
882
|
|
443
|
|
1,344
|
|
Adjusted net
income (non-GAAP)
attributable to Daqo New Energy
Corp. shareholders
|
|
24,779
|
|
6,160
|
|
11,718
|
|
Adjusted earnings
per basic ADS
(non-GAAP)
|
|
2.36
|
|
$0.59
|
|
1.12
|
|
Adjusted earnings
per diluted ADS
(non-GAAP)
|
|
2.32
|
|
$0.58
|
|
1.11
|
|
For further information, please contact:
Daqo New Energy Corp.
Investor Relations
Phone: +86-187-1658-5553
dqir@daqo.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-first-quarter-2017-results-300453893.html
SOURCE Daqo New Energy Corp.