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Daqo New Energy Corp (DQ) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Revenue: $195.4 million in Q4 2024, down from $198.5 million in Q3 2024 and $476.3 million in Q4 2023.

  • Gross Margin: Negative 33% in Q4 2024, compared to negative 30.5% in Q3 2024 and 18.3% in Q4 2023.

  • Net Loss: $180 million in Q4 2024, compared to $60 million in Q3 2024 and net income of $53.3 million in Q4 2023.

  • Loss per ADS: $2.71 in Q4 2024, compared to $0.92 in Q3 2024 and income per ADS of $0.76 in Q4 2023.

  • Adjusted Net Loss: $170.6 million in Q4 2024, compared to $39.4 million in Q3 2024 and adjusted net income of $74 million in Q4 2023.

  • EBITDA: Negative $236.5 million in Q4 2024, compared to negative $34 million in Q3 2024 and $128.2 million in Q4 2023.

  • Cash and Cash Equivalents: $1.038 billion as of December 31, 2024.

  • Polysilicon Production Volume: 34,236 metric tons in Q4 2024.

  • Sales Volume: 42,191 metric tons in Q4 2024.

  • Average Selling Price (ASP): Decreased to $5.66 per kilogram in 2024 from $11.48 per kilogram in 2023.

  • Cash Costs: Declined to $5.04 per kilogram in Q4 2024, a 6% decrease from Q3 2024.

  • Inventory Impairment: Non-cash provision due to ASPs falling below production costs.

  • Fixed Asset Impairment: $175.6 million charge related to older polysilicon production lines in Q4 2024.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Daqo New Energy Corp (NYSE:DQ) achieved an annual polysilicon production volume of 200,568 metric tons in 2024, meeting their guidance.

  • The company increased its N-type product mix significantly from 40% in 2023 to 70% in 2024.

  • Daqo New Energy Corp (NYSE:DQ) maintains a strong balance sheet with a cash balance of $1 billion and a total of $2.2 billion in quick assets.

  • The company has been proactive in managing production to reduce cash burn amid challenging market conditions.

  • Daqo New Energy Corp (NYSE:DQ) is positioned as one of the world's lowest-cost producers with high-quality products, no financial debt, and plans to leverage digital transformation and AI for cost optimization.

Negative Points

  • The company faced a challenging market environment with excess capacity in the solar PV industry, leading to sharp price declines.

  • Average selling prices (ASPs) for polysilicon decreased significantly from $11.48 per kilogram in 2023 to $5.66 per kilogram in 2024.

  • Daqo New Energy Corp (NYSE:DQ) reported a non-cash provision for inventory impairment and a negative gross margin of 20.7% for 2024.

  • The company recorded a non-cash long-lived assets impairment charge of $175.6 million related to older polysilicon production lines.

  • Revenues decreased to $1.03 billion in 2024 from $2.3 billion in 2023, primarily due to lower ASPs and sales volumes.