雷火官网-中国知名电竞赛事平台

CHONGQING, China, Nov. 13, 2014 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading polysilicon manufacturer based in China, today announced its unaudited financial results for the third quarter of 2014.

"We are excited to report another successful quarter which delivered the best quarterly results of our Xinjiang polysilicon facilities so far in terms of cost structure, production volume and shipment and recorded the third consecutive profitable quarter," announced Dr. Gongda Yao, the Company's chief executive officer.

"In the third quarter of 2014, our operation team in our Xinjiang facilities did an excellent job to further optimize the manufacturing progress and improve production efficiency, and as a result achieved a record high quarterly production volume of 1,748 MT without adding any additional equipment in such quarter. As a result, our total production cost (including depreciation) was reduced to $13.05/kg with a cash cost of $10.72/kg (excluding depreciation). We expect to continue to produce polysilicon in our Xinjiang facilities at this output level which exceeds our nameplate capacity by 9%. We believe we will continue to maintain this level of production cost until our existing capacities are upgraded to the new hydrochlorination system, which we expect will further lower our production cost to $12.00/kg by the end of the second quarter of 2015."

"In the third quarter of 2014, we shipped 1,598 MT of polysilicon, increasing from 1,436 MT in the previous quarter. We also shipped 18.5 million pieces of wafer, increasing from 17.6 million pieces in the previous quarter. We achieved EBITDA margin of 34.7% and positive operating income of $9.5 million. Our net income attributable to Daqo shareholders was $5.9 million, up from $4.5 million in the second quarter of 2014."

"As for the polysilicon expansion project in Xinjiang, we are on track with the construction and installation work. We expect to fully ramp up the capacity to 12,150MT by the end of the second quarter of 2015 and thereafter reduce our cash cost (excluding depreciation) and production cost (including depreciation) to approximately $8.70/kg and $12.00/kg, respectively."

"In the third quarter of 2014, the average selling price, or ASP, for polysilicon was $21.50/kg, compared to $22.04/kg in the second quarter of 2014. In spite of the ASP decrease, we were still able to expand our gross margin due to our continuous cost reduction effort. We believe the end-market demand in the fourth quarter is likely to be strong. We also believe the positive trend in terms of end-market demand will likely continue into early next year, as we expect the demand in the first quarter of 2015 to be strong in the UK and Japanese markets. In mid August, the Chinese government announced that starting from September 1, 2014, the application for solar grade polysilicon processing trade import would be suspended and all existing agreements approved beforehand could remain valid until the end of 2014. As a result, we have seen foreign polysilicon makers increasing their supply of polysilicon into China. However, we do not expect that such behavior by foreign polysilicon makers can continue indefinitely as the Chinese government adopts new regulations for polysilicon import in the future."

"We believe that Daqo currently has the lowest cost structure within our industry and first class quality polysilicon manufacturing facilities. We believe it is difficult for our competitors to replicate our growth and achieve the consistent cost reductions we have achieved. Looking forward, with our current and future expansion and progressive cost reduction road map, we believe we are paving the way to become a truly global leader in the industry," concluded Dr. Yao.

Outlook for Q4 2014

For the fourth quarter of 2014, the Company expects to ship 1,500 MT to 1,550 MT of polysilicon. The Company also expects to ship approximately 16.8 million to 17.0 million pieces of wafer.

This outlook reflects our current and preliminary view and may be subject to change. Our ability to achieve this projection is subject to risks and uncertainties.

Third Quarter 2014 Results

Revenues

Revenues were $47.3 million, increasing from $43.7 million in the second quarter of 2014 and $29.6 million in the third quarter of 2013.

The Company generated revenues of $32.8 million from polysilicon, increasing from $31.0 million in the second quarter of 2014, and $22.9 million in the third quarter of 2013. The increase from the second quarter of 2014 was primarily due to higher sales volumes offset by lower ASP for polysilicon.

The Company generated $14.5 million from sales of wafers, compared to $12.7 million in the second quarter of 2014 and $6.7 million (including $0.7 million from sales of silicon blocks) in the third quarter of 2013. The increase from the second quarter of 2014 was primarily due to increased proportion of sales of internally produced wafer versus wafer OEM.

Gross profit and margin

Gross profit was $11.6 million, compared to $10.1 million in the second quarter of 2014 and a gross loss of $3.9 million in the third quarter of 2013.

Gross margin was 24.5%, compared to 23.1% in the second quarter of 2014 and negative 13.3% in the third quarter of 2013.

In the third quarter of 2014, total costs related to the non-operational Chongqing polysilicon plant including depreciation were $3.4 million, compared to $3.4 million in the second quarter of 2014 and $6.9 million in the third quarter of 2013. Excluding such costs, the non-GAAP gross margin was approximately 31.7%, compared to 30.9% in the second quarter of 2014 and 9.8% in the third quarter of 2013.

Selling, general and administrative expenses

Selling, general and administrative expenses were $2.5 million, compared to $1.5 million in the second quarter of 2014 and $3.8 million in the third quarter of 2013. Included in selling, general and administrative expenses were reversal of bad debt provision of $0.5 million in the third quarter of 2014 and $1.6 million in the second quarter of 2014, due to the subsequent collection of certain long aging outstanding accounts receivables in the prior periods.

Research and development expenses

Research and development expenses were approximately $0.2 million, compared to $0.2 million in the second quarter of 2014 and $0.8 million in the third quarter of 2013.

Operating income/ (loss) and margin

As a result of the foregoing, operating income was $9.5 million, compared to $8.3 million in the second quarter of 2014 and operating loss of $5.0 million in the third quarter of 2013.

Operating margin was 20.0%, compared to 19.1% in the second quarter of 2014 and negative 16.8% in the second quarter of 2013.

EBITDA

EBITDA was $16.4 million for the quarter, compared to $15.2 million in the second quarter of 2014 and $6.8 million in the third quarter of 2013. EBITDA margin was 34.7% for the quarter, compared to 34.9% in the second quarter of 2014 and 22.9% in the third quarter of 2013.

Net income/(loss) attributable to our shareholders and Income/(loss) per ADS

As a result of the aforementioned, net income attributable to Daqo New Energy Corp. shareholders was $5.9 million, compared to $4.5 million in the second quarter of 2014 and net loss attributable to Daqo New Energy Corp. shareholders of $10.3 million in the third quarters of 2013.

Income per ADS was $0.66, compared to income per ADS of $0.57 in the second quarter of 2014 and loss per ADS of $1.49 in the third quarter of 2013. The basic outstanding ADS increased from 7.9 million shares in the second quarter to 8.9 million shares in the third quarter due to the follow-on offering in May 2014.

Financial Condition

As of September 30, 2014, the Company had $30.0 million in cash and cash equivalents and restricted cash, compared to $77.7 million as of June 30, 2014 and $19.5 million as of September 30, 2013. The decrease in cash from last quarter is due to the scheduled payment on the polysilicon expansion project in Xinjiang.

As of September 30, 2014, the accounts receivable balance was $6.8 million, compared to $6.8 million as of June 30, 2014. As of September 30, 2014, the notes receivable balance was $36.8 million, compared to $33.6 million as of June 30, 2014. As of September 30, 2014, total borrowings were $246.4million, of which $116.6 million were long-term borrowings, compared to total borrowings of $253.4 million, including $112.1 million in long-term borrowings, as of June 30, 2014.

Cash Flows

For the nine months ended September 30, 2014, net cash provided by operating activities was $47.7 million, compared to net cash used in operating activities of $16.8 million in the same period of 2013.

For the nine months ended September 30, 2014, net cash used in investing activities was $81.0 million, compared to $12.1 million in the same period of 2013. The cash used in investing activities are mainly related to the expansion of and technology improvement project in our Xinjiang polysilicon facilities.

For the nine months ended September 30, 2014, net cash provided by financing activities was $38.1 million, compared to $33.1 million in the same period of 2013.

Non-GAAP Financial Measures

To supplement Daqo's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), Daqo uses in this press release non-GAAP gross profit and non-GAAP gross margin, which exclude costs related to the non-operational polysilicon operations in Chongqing. Such costs mainly consist of 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 facility. The Company would expect a majority of these costs, such as depreciation, will continue to occur as part of the production cost in Xinjiang facility subsequent to the completion of the relocation plan. Once these assets are placed back in services, the Company will remove this adjustment from the non-GAAP reconciling item. We also use EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenue. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. Daqo believes that the non-GAAP financial measures facilitate investors' and management's comparisons to Daqo's historical performance and assists management's financial and operational decision making.

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 8AM Eastern Time on November 13, 2014.

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

You can also listen to the conference call via Webcast through the URL: http://mms.prnasia.com/DQ/20141113/default.aspx

A replay of the call will be available 1 hour after the end of the conference through November 20, 2014.

The conference call replay numbers are as follows:

Participants will be required to state their name and company upon entering the call.

Investors will also have the opportunity to listen to the replay over the Internet through the investor relations section of Daqo New Energy's web site at: www.btzhichen.com

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) is a leading polysilicon manufacturer based in China. Daqo New Energy primarily manufactures and sells high-quality polysilicon to photovoltaic product manufacturers. It also manufactures and sells photovoltaic wafers. For more information about Daqo New Energy, please visit www.btzhichen.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 fourth quarter of 2014 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.

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For further information, please contact:

Daqo New Energy Corp.
Kevin He, Investor Relations
Phone: +86-23-6486-6556
Email: Kevin.he@daqo.com

SOURCE Daqo New Energy Corp.