June 05, 2020

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Daqo New Energy Announces Unaudited First Quarter 2020 Results


SHIHEZI, China, May 20, 2020 /PRNewswire/ — Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced its unaudited financial results for the first quarter of 2020.

First Quarter 2020 Financial and Operating Highlights

  • Polysilicon production volume was 19,777 MT in Q1 2020, compared to 16,204 MT in Q4 2019
  • Polysilicon sales volume was 19,101 MT in Q1 2020, compared to 13,291 MT in Q4 2019
  • Polysilicon average total production cost(1) was $5.86/kg in Q1 2020, compared to $6.38/kg in Q4 2019
  • Polysilicon average cash cost(1) was $5.01/kg in Q1 2020, compared to $5.47/kg in Q4 2019
  • Polysilicon average selling price (ASP) was $8.79/kg in Q1 2020, compared to $8.77/kg in Q4 2019
  • Revenue from continuing operations was $168.8 million in Q1 2020, compared to $118.9 million in Q4 2019
  • Gross profit from continuing operations was $56.6 million in Q1 2020, compared to $35.1 million in Q4 2019. Gross margin from continuing operations was 33.5% in Q1 2020, compared to 29.5% in Q4 2019
  • EBITDA (non-GAAP)(2) from continuing operations was $63.1 million in Q1 2020, compared to $45.4 million in Q4 2019. EBITDA margin (non-GAAP)(2) from continuing operations was 37.4% in Q1 2020, compared to 38.2% in Q4 2019
  • Net income attributable to Daqo New Energy Corp. shareholders was $33.2 million in Q1 2020, compared to $20.1 million in Q4 2019
  • Earnings per basic American Depositary Share (ADS) was $2.37 in Q1 2020, compared to $1.45 in Q4 2019
  • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $37.7 million in Q1 2020, compared to $24.5 million in Q4 2019
  • Adjusted earnings per basic ADS (non-GAAP)(2) was $2.69 in Q1 2020, compared to $1.77 in Q4 2019

Three months ended

US$ millions

except as indicated otherwise

Mar 31,
2020

Dec 31,
2019

Mar 31,
2019

Revenues

168.8

118.9

81.2

Gross profit

56.6

35.1

18.3

Gross margin

33.5%

29.5%

22.6%

Operating income

45.8

30.1

9.1

Net income attributable to Daqo New Energy Corp.
shareholders

33.2

20.1

6.6

Earnings per basic ADS ($ per ADS)

2.37

1.45

0.50

Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders

37.7

24.5

11.1

Adjusted earnings per basic ADS (non-GAAP)(2)
($ per ADS)

2.69

1.77

0.83

EBITDA (non-GAAP)(2) from continuing operations

63.1

45.4

19.9

EBITDA margin (non-GAAP)(2) from continuing
operations

37.4%

38.2%

24.5%

Polysilicon sales volume (MT)

19,101

13,291

8,450

Polysilicon average total production cost ($/kg)(1)

5.86

6.38

7.42

Polysilicon average cash cost (excl. dep’n) ($/kg)(1)

5.01

5.47

6.20

Notes:

(1) Production cost and cash cost only refer to production in our Xinjiang polysilicon facilities. Production cost is calculated by the
inventoriable costs relating to production of polysilicon in Xinjiang divided by the production volume in the period indicated. Cash cost
is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation expense, divided by the production
volume in the period indicated.

(2) Daqo New Energy provides EBITDA from continuing operations, EBITDA margin from continuing operations, adjusted net income
attributable to Daqo New Energy Corp. shareholders and adjusted earnings per ADS on a non-GAAP basis to provide supplemental
information regarding its financial performance. For more information on these non-GAAP financial measures, please see the section
captioned “Use of Non-GAAP Financial Measures” and the tables captioned “Reconciliation of non-GAAP financial measures to
comparable US GAAP measures” set forth at the end of this press release.

Management Remarks

Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “We are pleased to report an outstanding quarter with excellent financial and operational results. We operated at full capacity during the quarter and were able to produce and sell record-high volume of 19,777 MT and 19,101 MT of polysilicon, respectively. Thanks to growing economies of scale, savings on energy consumption and improved operational efficiency, our total production cost decreased to $5.86/kg during the quarter, a decrease of 8% from $6.38/kg in Q4 2019. Our cash cost during the quarter also decreased to $5.01/kg, down from $5.47/kg in Q4 2019. In addition, we continued to make improvements in quality and were able to sell approximately 95% of our products to mono wafer customers. All in all, we are very proud of the achievements we made in expanding production volume, optimizing our cost structure and enhancing quality within only two quarters following the start of Phase 4A pilot production. Our exceptional results this quarter reflect the strong capabilities of our Xinjiang facilities at full production following the completion of the Phase 4A expansion project. We believe this also demonstrates our extensive experience and expertise in polysilicon manufacturing, and further solidifies our position as a global leader in the industry.”

“Despite the challenging market environment, we successfully expanded our gross margin by further optimizing our cost structure during the quarter. Gross margin during the quarter was 33.5% compared with 29.5% in the fourth quarter of 2019. An expanding gross margin and increasing sales volume resulted in $63.1 million in EBITDA, up 39% sequentially, and $37.7 million in adjusted net income, up 53.5% sequentially. I would like to thank our entire team for their contribution to this quarter’s strong results given all the difficulties in securing raw materials, managing on-site operations, and facilitating logistics during lockdown that followed the outbreak of COVID-19 in China.”

“Towards the end of the first quarter, the spread of COVID-19 globally and related lockdowns, particularly in the U.S., Europe and certain other emerging markets, resulted in significant disruptions to demand for solar PV products. This has created short-term market uncertainty and volatility across the solar PV industry during the second quarter. Fortunately, the spread of COVID-19 has begun to ease and things are gradually returning to normal across all walks of life, particularly in China. We expect to see some rush orders from solar PV developers in China for legacy projects delayed from last year in order to meet the grid connection deadline set for the end of June. However, a recovery of demand from markets outside of China is critical going forward as overseas markets currently account for approximately 75% of total global solar end market demand. With many economies beginning to reopen, we expect to see a gradual recovery of solar PV demand in the third quarter. We are confident that the long-term solar PV growth prospects remain intact despite the near-term challenging market environment as solar PV energy continues to attract investors seeking to benefit from lower costs and interest rates.”

“We are currently conducting scheduled annual maintenance for our Xinjiang facilities. As such, we expect to produce 15,500 to 16,500 MT of polysilicon during the second quarter. Annual production volume for 2020 is expected to be 73,000 to 75,000 MT. We expect to see global solar markets recover as the impact from COVID-19 fades over the next two or three months. We are confident in our ability to navigate this challenging environment leveraging our competitive advantages in product quality and cost structure.”

Outlook and guidance

The Company expects to produce approximately 15,500MT to 16,500MT of polysilicon and sell approximately 14,500MT to 15,500MT of polysilicon to external customers during the second quarter of 2020. For the full year of 2020, the Company expects to produce approximately 73,000 to 75,000 MT of polysilicon, inclusive of the impact of the Company’s annual facility maintenance.

This outlook reflects Daqo New Energy’s current and preliminary view as of the date of this press release and may be subject to changes. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.

First Quarter 2020 Results

Revenues

Revenues were $168.8 million, compared to $118.9 million in the fourth quarter of 2019 and $81.2 million in the first quarter of 2019. The increase in revenues was primarily due to higher polysilicon sales volume.

Gross profit and margin

Gross profit was $56.6 million, compared to $35.1 million in the fourth quarter of 2019 and $18.3 million in the first quarter of 2019. Gross margin was 33.5%, compared to 29.5% in the fourth quarter of 2019 and 22.6% in the first quarter of 2019. The increase in gross margin was primarily due to lower production costs.

Selling, general and administrative expenses

Selling, general and administrative expenses were $8.9 million, compared to $8.5 million in the fourth quarter of 2019 and $7.9 million in the first quarter of 2019. SG&A expenses during the quarter included $4.0 million in non-cash share-based compensation costs related to the Company’s share incentive plan.

Research and development expenses

Research and development (R&D) expenses were $1.7 million, compared to $1.7 million in the fourth quarter of 2019 and $1.3 million in the first quarter of 2019. Research and development expenses can vary from period to period and reflect R&D activities that take place during the quarter.

Income from operations and operating margin

As a result of the foregoing, income from operations was $45.8 million, compared to $30.1 million in the fourth quarter of 2019 and $9.1 million in the first quarter of 2019.Operating margin was 27.1%, compared to 25.3% in the fourth quarter of 2019 and 11.3% in the first quarter of 2019.

Interest expense

Interest expense was $6.3 million, compared to $3.9 million in the fourth quarter of 2019 and $2.0 million in the first quarter of 2019.

EBITDA (non-GAAP)

EBITDA (non-GAAP) from continuing operations was $63.1 million, compared to $45.4 million in the fourth quarter of 2019 and $19.9 million in the first quarter of 2019. EBITDA margin (non-GAAP) was 37.4%, compared to 38.2% in the fourth quarter of 2019 and 24.5% in the first quarter of 2019.

Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

As a result of the aforementioned, net income attributable to Daqo New Energy Corp. shareholders was $33.2 million in the first quarter of 2020, compared to $20.1 million in the fourth quarter of 2019 and $6.6 million in the first quarter of 2019.

Earnings per basic ADS was $2.37 in the first quarter of 2020, compared to $1.45 in the fourth quarter of 2019, and $0.50 in the first quarter of 2019.

Financial Condition

As of March 31, 2020, the Company had $120.8 million in cash and cash equivalents and restricted cash, compared to $114.4 million as of December 31, 2019 and $113.7 million as of March 31, 2019. As of March 31, 2020, the notes receivable balance was $4.4 million, compared to $5.6 million as of December 31, 2019 and $0.7 million as of March 31, 2019. As of March 31, 2020, total borrowings were $265.6 million, of which $149.0 million were long-term borrowings, compared to total borrowings of $280.1 million, including $151.5 million long-term borrowings, as of December 31, 2019 and total borrowings of $193.0 million, including $149.7 million long-term borrowings, as of March 31, 2019.

Cash Flows

For the three months ended March 31, 2020, net cash provided by operating activities was $31.1 million, compared to $48.5 million in the same period of 2019.

For the three months ended March 31, 2020, net cash used in investing activities was $12.9 million, compared to $38.6 million in the same period of 2019. The net cash used in investing activities in 2020 and 2019 was primarily related to the capital expenditures on Xinjiang Phase 3B and 4A polysilicon projects.

For the three months ended March 31, 2020, net cash used in financing activities was $10.0 million, compared to net cash provided by financing activities of $7.2 million in the same period of 2019.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company’s results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company’s operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management’s use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company’s operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.

The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to the non-operational polysilicon assets in Chongqing. Such costs mainly consist of non-cash depreciation costs, as well as utilities and maintenance costs associated with the temporarily idle polysilicon machinery and equipment, and the Company had removed this adjustment from the non-GAAP reconciling item since the fourth quarter of 2018, because as of the end of the third quarter of 2018, all of the polysilicon machinery and equipment had been either relocated to Xinjiang, disposed, or planned to be disposed of in due course. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS also exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company’s core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.

A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document.

Conference Call

The Company has scheduled a conference call to discuss the results at 8:00 AM Eastern Time on May 20, 2020. (8:00 PM Beijing / Hong Kong time on the same day).

The dial-in details for the live conference call are as follows:

Participant dial in (toll free):

+1-888-346-8982

Participant international dial in:

+1-412-902-4272

China mainland toll free:

4001-201203

Hong Kong toll free:

800-905945

Hong Kong-local toll:

+852-301-84992

Participants please dial in 10 minutes before the call is scheduled to begin and ask to be
joined into the Daqo New Energy Corp. call.

You can also listen to the conference call via Webcast through the URL:
https://services.choruscall.com/links/dq200520.html

A replay of the call will be available 1 hour after the end of the conference through May 27, 2020.

The conference call replay numbers are as follows:

US Toll Free:

+1-877-344-7529

International Toll:

+1-412-317-0088

Canada Toll Free:

855-669-9568

Replay access code:

10144142

To access the replay using an international dial-in number, please select the link below.

https://services.choruscall.com/ccforms/replay.html
Participants will be required to state their name and company upon entering the call.

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) (“Daqo” or the “Company”) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2008, the Company is one of the world’s lowest cost producers of high-purity polysilicon. Daqo’s highly-efficient and technically advanced manufacturing facility in Xinjiang, China currently has a nameplate annual polysilicon production capacity of 70,000 metric tons.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the second quarter and the full year of 2020 and quotations from management in this announcement, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company’s ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company’s ability to lower its production costs; and the duration of COVID-19 outbreaks in China and many other countries and the impact of the outbreaks and the quarantines and travel restrictions instituted by relevant governments on economic and market conditions, including potentially weaker global demand for solar PV installations that could adversely affect the Company’s business and financial performance.. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income

(US dollars in thousands, except ADS and per ADS data)

Three months Ended

Mar 31,
2020

Dec 31,
2019

Mar 31,
2019

Revenues

$168,831

$118,918

$81,204

Cost of revenues

(112,277)

(83,800)

(62,863)

Gross profit

56,554

35,118

18,341

Operating expenses

Selling, general and administrative expenses

(8,892)

(8,537)

(7,935)

Research and development expenses

(1,654)

(1,656)

(1,297)

Other operating income

(215)

5,164

3

Total operating expenses

(10,761)

(5,029)

(9,229)

Income from operations

45,793

30,089

9,112

Interest expense

(6,287)

(3,936)

(2,021)

Interest income

151

208

324

Foreign exchange gain / (loss)

4

(189)

Income before income taxes

39,657

26,365

7,226

Income tax expense

(6,344)

(5,972)

(1,429)

Net income from continuing operations

33,313

20,393

5,797

Net (loss) / income from discontinued operations

(86)

(306)

845

Net income

33,227

20,087

6,642

Net (loss) / income attributable to non-controlling interest

(3)

(1)

Net income attributable to Daqo New Energy Corp.
shareholders

$33,230

$20,088

$6,642

Net income

33,227

20,087

6,642

Other comprehensive income:

Foreign currency translation adjustments

(9,819)

13,892

13,014

Total other comprehensive (loss) / income /

(9,819)

13,892

13,014

Comprehensive income

23,408

33,979

19,656

Comprehensive income attributable to non-controlling
interest

(9)

2

Comprehensive income attributable to Daqo New Energy
Corp. shareholders

$23,417

$33,977

$19,656

Earnings / (Loss) per ADS

-Continuing operations

2.38

1.47

0.44

-Discontinued operations

(0.01)

(0.02)

0.06

Basic

2.37

1.45

0.50

-Continuing operations

2.28

1.43

0.42

-Discontinued operations

(0.01)

(0.02)

0.06

Diluted

2.27

1.41

0.48

Weighted average ADS outstanding

Basic

13,991,847

13,837,250

13,360,729

Diluted

14,669,820

14,274,977

13,749,959

Daqo New Energy Corp.

Unaudited Consolidated Balance Sheets

(US dollars in thousands)

Mar 31, 2020

Dec 31, 2019

Mar 31, 2019

ASSETS:

Current Assets:

Cash and cash equivalents

$63,168

$51,840

$65,111

Restricted cash

57,639

62,609

48,560

Accounts receivable, net

213

13

2,204

Notes receivable

4,402

5,644

714

Prepaid expenses and other current assets

13,249

15,344

9,717

Advances to suppliers

8,962

1,544

2,846

Inventories, net

33,234

36,391

18,882

Amount due from related parties

17

4,179

Current assets associated with discontinued
operation

664

926

2,748

Total current assets

181,531

174,328

154,961

Property, plant and equipment, net

968,418

995,027

691,491

Prepaid land use right

28,936

29,593

24,375

Deferred tax assets

1,330

1,352

842

Investment in affiliate

631

642

666

Operating lease Right-of-use assets

173

197

Non-current asset associated with discontinued
operation

197

217

51,727

TOTAL ASSETS

1,181,216

1,201,356

924,062

Current liabilities:

Short-term borrowings, including current
portion of long-term borrowings

116,602

128,612

43,210

Accounts payable

17,716

12,713

9,926

Notes payable

89,614

101,171

66,322

Advances from customers-short term portion

11,640

33,028

9,658

Payables for purchases of property, plant and
equipment

106,208

112,538

25,085

Accrued expenses and other current liabilities

11,284

12,222

9,330

Amount due to related parties

43,363

38,825

2,143

Income tax payable

10,975

4,789

6,293

Lease liabilities – short term portion

85

85

Current liabilities associated with discontinued
operation

1,164

1,165

7,591

Total current liabilities

408,651

445,148

179,558

Long-term borrowings

149,018

151,518

149,744

Advance from customers – long term portion

1,624

2,154

5,364

Amount due to related parties – long term
portion

7,899

16,390

Other long-term liabilities

20,536

21,034

21,848

Deferred tax liabilities

6,271

6,368

1,174

Lease liabilities – long term portion

77

77

Non-current liabilities associated with
discontinued operation

721

TOTAL LIABILITIES

586,177

634,198

374,799

EQUITY:

Ordinary shares

35

35

34

Treasury stock

(1,749)

(1,749)

(1,749)

Additional paid-in capital

391,843

387,371

373,156

Accumulated gains

234,152

200,922

178,040

Accumulated other comprehensive loss

(29,750)

(19,937)

(218)

Total Daqo New Energy Corp.’s shareholders’
equity

594,531

566,642

549,263

Non-controlling interest

508

516

Total equity

595,039

567,158

549,263

TOTAL LIABILITIES & EQUITY

1,181,216

1,201,356

924,062

Daqo New Energy Corp.

Unaudited Consolidated Statements of Cash Flows

(US dollars in thousands)

For the three months ended March 31,

2020

2019

Operating Activities:

Net income

$33,227

$6,642

Less: Income / (loss) from discontinued operations, net of tax

(86)

845

Net income from continuing operations

33,313

5,797

Adjustments to reconcile net income to net cash provided by
operating activities:

Share-based compensation

4,461

4,474

Inventory write-down

863

Depreciation of property, plant and equipment

17,084

8,755

Non-cash lease expense

20

Amortization of prepaid land use right

171

Loss on disposal of property, plant and equipment

301

Changes in operating assets and liabilities:

Accounts receivable

(203)

(989)

Notes receivable

1,166

7,556

Prepaid expenses and other current assets

1,876

872

Advances to suppliers

(7,550)

562

Inventories

1,731

(3,031)

Prepaid land use rights

143

Accounts payable

5,287

499

Notes payable

(11,277)

21,850

Accrued expenses and other current liabilities

(747)

(320)

Income tax payable

6,355

698

Advances from customers

(21,644)

(2,880)

Amount due to related parties

1

(16)

Deferred tax liabilities

8

(40)

Deferred government subsidies

(153)

(148)

Lease liabilities

2

Net cash provided by operating activities-continuing operations

31,065

43,782

Net cash provided by operation activities-discontinued operations

15

4,699

Net cash provided by operating activities

31,080

48,481

Investing activities:

Purchases of property, plant and equipment

(12,893)

(57,462)

Purchase of land use right

(4,271)

Repayment of short-term investment

22,224

Acquisition of Xinjiang Daqo Investment

642

Net cash used in investing activities-continuing operations

(12,893)

(38,867)

Net cash provided by investing activities-discontinuing operations

(14)

232

Net cash used in investing activities

(12,907)

(38,635)

Financing activities:

Proceeds from related parties loans

1,482

Proceeds from bank borrowings

51,856

Repayment of bank borrowings

(10,030)

(34,788)

Cash received from exercise of options

3

Net cash provided by financing activities – continuing operations

Net cash used in financing activities – discontinued operations

(10,027)

18,550

Net cash provided by financing activities

(1)

(11,382)

Non-cash transactions

(10,028)

7,168

Effect of exchange rate changes

(1,997)

2,429

Net increase in cash, cash equivalents and restricted cash

6,148

19,443

Cash, cash equivalents and restricted cash at the beginning of the period

115,294

95,120

Cash, cash equivalents and restricted cash at the end of the period

121,442

114,563

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.

Mar 31, 2020

Mar 31, 2019

Cash and cash equivalents

63,803

65,999

Restricted cash

57,639

48,564

Total cash, cash equivalents, and restricted cash shown in the
statement of cash flows

121,442

114,563

Daqo New Energy Corp.

Reconciliation of non-GAAP financial measures to comparable US GAAP measures

(US dollars in thousands)

Three months Ended

Mar 31, 2020

Dec 31, 2019

Mar 31, 2019

Net income from continuing operations

33,313

20,393

5,797

Income tax expense

6,344

5,972

1,429

Interest expense

6,287

3,936

2,021

Interest income

(151)

(208)

(324)

Depreciation & amortization

17,275

15,281

11,010

EBITDA (non-GAAP)

63,068

45,374

19,933

EBIDTA margin (non-GAAP)

37.4%

38.2%

24.5%

Three months Ended

Mar 31, 2020

Dec 31, 2019

Mar 31, 2019

Net income attributable to Daqo New
Energy Corp. shareholders

33,230

20,088

6,642

Share-based compensation

4,461

4,461

4,474

Adjusted net income (non-GAAP)
attributable to Daqo New Energy Corp.
shareholders

37,691

24,549

11,116

Adjusted earnings per basic ADS (non-
GAAP)

$2.69

$1.77

$0.83

Adjusted earnings per diluted ADS (non-
GAAP)

$2.57

$1.72

$0.81

For further information, please contact:

Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com

In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com

For more information, please visit www.dqsolar.com

Related Links :

http://www.dqsolar.com


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