In This Article:
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Revenue: $198.5 million, down from $219.9 million in Q2 2024 and $484.8 million in Q3 2023.
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Gross Loss: $60.6 million, compared to $159.2 million in Q2 2024 and a gross profit of $67.8 million in Q3 2023.
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Gross Margin: Negative 30.5%, compared to negative 72% in Q2 2024 and 14% in Q3 2023.
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Net Loss: $60.7 million, compared to a loss of $120 million in Q2 2024 and $6.3 million in Q3 2023.
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Loss Per Basic ADS: $0.92, compared to a loss of $1.81 in Q2 2024 and $0.09 in Q3 2023.
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Adjusted Net Loss: $39.4 million, compared to $98.8 million in Q2 2024 and a net income of $44 million in Q3 2023.
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EBITDA: Negative $34 million, compared to negative $145 million in Q2 2024 and $70.2 million in Q3 2023.
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Cash and Cash Equivalents: $853.4 million as of September 30, 2024, down from $997.5 million as of June 30, 2024.
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Production Volume: 53,592 metric tons of polysilicon in Q3 2024.
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Cash Cost: Reduced to $5.34 per kilogram from $5.39 per kilogram in Q2 2024.
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Operating Loss: $98 million, compared to $195.6 million in Q2 2024.
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Operating Margin: Negative 49%, compared to negative 89% in Q2 2024.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Daqo New Energy Corp (NYSE:DQ) maintained a strong and healthy balance sheet with no financial debt.
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The company had a cash balance of $853 million and short-term investments of $245 million at the end of the third quarter.
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Daqo New Energy Corp (NYSE:DQ) reduced its cash cost to $5.34 per kilogram, down from $5.39 per kilogram in the second quarter.
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The company is optimistic about capturing long-term benefits from the growing global solar PV market.
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Daqo New Energy Corp (NYSE:DQ) is one of the world's lowest-cost producers with high-quality products and a strong balance sheet, positioning it well for future growth.
Negative Points
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The company faced challenging market conditions with selling prices below production costs, leading to quarterly operating and net losses.
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Revenues decreased to $198.5 million from $219.9 million in the second quarter of 2024.
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Gross margin was negative 30.5%, although improved from negative 72% in the second quarter.
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Net loss attributable to shareholders was $60.7 million, compared to a loss of $120 million in the previous quarter.
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The company anticipates further production cuts in Q4 2024 due to weak market demand, which may increase unit production costs.
Q & A Highlights
Q: When do you think the government policy on reducing production based on energy intensity might become effective? A: Ming Yang, CFO: The government is studying this and talking with industry players. Policies like this might take 1 to 2 months to formulate, so we might see something by the end of November or December, but the exact timing is uncertain.