CHONGQING, China, Nov. 15, 2016 /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 third quarter of 2016.
Third Quarter 2016 Financial and Operating Highlights
- Polysilicon production volume of 3,636 MT in Q3 2016, compared to 3,570 MT in Q2 2016
- Polysilicon external sales volume(1) of 2,838 MT in Q3 2016, compared to 2,931 MT in Q2 2016
- Polysilicon average total production cost(2) of $8.66/kg in Q3 2016, compared to $9.43/kg in Q2 2016
- Polysilicon average cash cost(2) of $6.88/kg in Q3 2016, compared to $7.42/kg in Q2 2016
- Average selling price (ASP) of polysilicon was $15.64/kg in Q3 2016, compared to $17.24/kg in Q2 2016
- Solar wafer sales volume of 14.4 million pieces in Q3 2016, compared to 25.0 million pieces in Q2 2016
- Revenue of $54.3 million in Q3 2016, compared to $71.0 million in Q2 2016
- Non-GAAP gross margin(3) of 39.9% in Q3 2016, compared to 43.9% in Q2 2016
- EBITDA (non-GAAP)(3) of $25.0 million in Q3 2016, compared to $34.7 million in Q2 2016
- EBITDA margin (non-GAAP)(3) of 46.0% in Q3 2016, compared to 48.9% in Q2 2016
- Net income attributable to Daqo New Energy shareholders of $11.2 million in Q3 2016, compared to $19.8 in Q2 2016 and $3.1 million in Q3 2015
- Earnings per basic ADS of $1.07 in Q3 2016, compared to $1.90 in Q2 2016 and $0.29 in Q3 2015
- Adjusted net income (non-GAAP)(3) attributable to Daqo New Energy shareholders of $13.2 million in Q3 2016, compared to $22.0 million in Q2 2016 and $6.3 million in Q3 2015
- Adjusted earnings per basic ADS (non-GAAP)(3) of $1.26 in Q3 2016, compared to $2.10 in Q2 2016 and $0.60 in Q3 2015
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Three months ended |
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US$ millions except as indicated otherwise |
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2015 |
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Revenues |
54.3 |
71.0 |
46.6 |
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Gross profit |
20.1 |
29.4 |
8.6 |
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Gross margin |
37.1% |
41.4% |
18.4% |
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Income from operations |
16.4 |
26.1 |
6.7 |
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Net income attributable to Daqo New Energy |
11.2 |
19.8 |
3.1 |
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Earnings per basic ADS ($ per ADS) |
1.07 |
1.90 |
0.29 |
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Adjusted net income (non-GAAP)(3) attributable |
13.2 |
22.0 |
6.3 |
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Adjusted earnings per basic ADS (non-GAAP)(3) |
1.26 |
2.10 |
0.60 |
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Non-GAAP gross profit(3) |
21.6 |
31.2 |
10.9 |
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Non-GAAP gross margin(3) (%) |
39.9% |
43.9% |
23.4% |
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EBITDA (non-GAAP)(3) |
25.0 |
34.7 |
15.0 |
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EBITDA margin (non-GAAP)(3) |
46.0% |
48.9% |
32.1% |
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Polysilicon external sales volume (MT)(1) |
2,838 |
2,931 |
2,277 |
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Polysilicon production cost ($/kg)(2) |
8.66 |
9.43 |
11.15 |
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Polysilicon cash cost (excl. dep'n) ($/kg)(2) |
6.88 |
7.42 |
8.71 |
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Notes: |
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(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. |
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(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. |
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(3)? Daqo New Energy provides non-GAAP gross profit, non-GAAP gross margin, EBITDA, EBITDA margin, adjusted net income (loss) attributable to our 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
"During the third quarter of 2016, we successfully set new records again in terms of polysilicon production volume and costs. I would like to thank our entire team for their hard work and dedication.? Our polysilicon production for the third quarter reached a record high of 3,636 MT, which surpassed our name plate capacity of 12,150 MT per annum.? Through technical and process improvements, we also made significant progress in reducing our production cost even further, achieving our lowest ever cost structure with $8.66/kg in total cost and $6.88/kg in cash cost," said Dr. Gongda Yao, Chief Executive Officer of the Company.
"In the third quarter of 2016, downstream solar end market and polysilicon market experienced significant volatility.? Due to a slow-down in China end market demand and installation activities after China's FIT adjustment at the end of June 2016, the market saw lower levels of demand towards the end of the third quarter of 2016.? Our third quarter ASP was $15.64/kg, compared to second quarter ASP of $17.24.? As a result, several polysilicon manufacturers, both within China and abroad, partially shut down their capacities due to weak polysilicon pricing.? The resulting reduction in polysilicon supply has helped to stabilize the market and paved the way for price recovery.? Nevertheless, as a result of our continuous effort on technology improvements and cost reduction, our quarterly average production cost has been further reduced by 8% from $9.43/kg in the second quarter to $8.66/kg in the third quarter of 2016. "
"Due to a delay in the delivery of critical specialty components, the start date of annual maintenance for our Xinjiang polysilicon facility was postponed to October 3 from the second half of September as originally planned.? We conducted more than 500 maintenance items, including special projects that are expected to improve our manufacturing efficiency even further.? The maintenance was completed successfully, and we initiated a gradual restart of production on October 24.? In early November, production resumed successfully and we reached full capacity utilization.? Overall, we estimate that the annual maintenance has an impact of approximately 800 MT to 900 MT on our fourth quarter polysilicon production volume."?
"In the third quarter of 2016, due to market volatility and declining conditions for the solar wafer segment, we reduced our wafer production utilization rate. As a result, the Company sold 14.4 million pieces of wafer in the third quarter, compared to 25.0 million pieces in the second quarter of 2016. With improving market conditions, the Company ramped up wafer production utilization starting from mid-October and reached full production in November."
"The solar market began to recover in early October, with strong customer demand and order momentum.? Due to limited channel inventory, polysilicon pricing has recovered particularly well, with increases in orders from our broad based customers.? Wafer pricing also recovered significantly.? During early November, we also saw downstream product pricing recovering meaningfully, including pricing for solar cells and solar modules."?
Outlook and Q4 2016 guidance
As a result of our annual maintenance, the Company expects to sell approximately 2,200 MT to 2,300 MT of polysilicon to external customers during the fourth quarter of 2016.? The 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 20 million to 21 million pieces for the fourth quarter of 2016.
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.
Third Quarter 2016 Results
Revenues
Revenues were $54.3 million, compared to $71.0 million in the second quarter of 2016 and $46.6 million in the third quarter of 2015.
Revenues from polysilicon sales to external customers were $44.4 million, compared to $50.5 million in the second quarter of 2016 and $34.1 million in the third quarter of 2015. ?External sales volume was 2,838 MT in the third quarter of 2016, compared to 2,931 MT in the second quarter of 2016.? ASP of polysilicon was $15.64/kg in the third quarter of 2016, compared to $17.24/kg in the second quarter of 2016. The decrease in polysilicon revenues from the second quarter of 2016 was primarily due to lower polysilicon ASP and lower external sales volume.
Revenues from wafer sales were $9.9 million, compared to $20.5 million in the second quarter of 2016 and $12.5 million in the third quarter of 2015. Wafer sales volume was 14.4 million pieces, compared to 25.0 million pieces in the second quarter of 2016. The decrease in wafer revenues from the second quarter of 2016 was primarily due to lower wafer ASP and lower sales volume.?
Gross profit and margin
Gross profit was $20.1 million, compared to $29.4 million in the second quarter of 2016 and $8.6 million in the third quarter of 2015. Non-GAAP gross profit, which excludes costs related to the non-operational polysilicon operations in Chongqing, was approximately $21.6 million, compared to $31.2 million in the second quarter of 2016 and $10.9 million in the third quarter of 2015. Gross margin was 37.1%, compared to 41.4% in the second quarter of 2016 and 18.4% in the third quarter of 2015.
In the third quarter of 2016, total costs related to the non-operational Chongqing polysilicon plant including depreciation were $1.5 million, compared to $1.8 million in the second quarter of 2016 and $2.3 million in the third quarter of 2015. Excluding such costs, the non-GAAP gross margin was approximately 39.9%, compared to 43.9% in the second quarter of 2016 and 23.4% in the third quarter of 2015.
Selling, general and administrative expenses
Selling, general and administrative expenses were $4.9 million, compared to $3.7 million in the second quarter of 2016 and $2.9 million in the third quarter of 2015. The increase in selling, general and administrative expenses as compared to the second quarter of 2016 was primarily due to higher relocation and moving expenses related to the company's relocation of its idle polysilicon manufacturing equipments from Chongqing to Xinjiang, which were $1.7 million during the third quarter of 2016, compared to $0.6 million during the second quarter of 2016, as well as higher non-cash shared-based compensation expenses.
Research and development expenses
Research and development expenses were approximately $1.0 million, compared to $0.1 million in the second quarter of 2016 and $0.1 million in the third quarter of 2015.
Other operating income
Other operating income was $2.2 million, compared to $0.6 million in the second quarter of 2016 and $1.1 million in the third quarter of 2015. Other operating income mainly consists of unrestricted cash incentives that the Company received from local government authorities, the amount of which varies from period to period.
Income from operations and operating margin
Income from operations was $16.4 million, compared to $26.1 million in the second quarter of 2016 and $6.7 million in the third quarter of 2015.
Operating margin was 30.3%, compared to 36.8% in the second quarter of 2016 and 14.3% in the third quarter of 2015.
Interest expense
Interest expenses were $3.1 million, compared to $3.5 million in the second quarter of 2016 and $3.1 million in the third quarter of 2015.
EBITDA
EBITDA was $25.0 million, compared to $34.7 million in the second quarter of 2016 and $15.0 million in the third quarter of 2015. EBITDA margin was 46.0%, compared to 48.9% in the second quarter of 2016 and 32.1% in the third quarter of 2015.
Net income attributable to Daqo New Energy shareholders and earnings per ADS
Net income attributable to Daqo New Energy shareholders was $11.2 million, compared to $19.8 million in the second quarter of 2016 and $3.1 million in the third quarter of 2015.
Earnings per basic ADS were $1.07, compared to $1.90 in the second quarter of 2016 and $0.29 in the third quarter of 2015.
Financial Condition
As of September 30, 2016, the Company had $29.2 million in cash and cash equivalents and restricted cash, compared to $42.9 million as of June 30, 2016 and $68.7 million as of September 30, 2015.
As of September 30, 2016, the accounts receivable balance was $4.6 million, compared to $10.1 million as of June 30, 2016 and $15.4 million as of September 30, 2015.
As of September 30, 2016, the note receivables balance was $17.0 million, compared to $14.8 million as of June 30, 2016 and $16.5 million as of September 30, 2015.
As of September 30, 2016, total borrowings were $227.6 million, of which $129.0 million were long-term borrowings, compared to total borrowings of $227.9 million, including $118.4 million long-term borrowings, as of June 30, 2016, and total borrowings of $259.1 million, including $144.0 million long-term borrowings, as of September 30, 2015.
As of September 30, 2016, the note payables balance was $14.4 million, compared to $26.1 million as of June 30, 2016 and $52.2 million as of September 30, 2015.
Cash Flows
For the nine months ended September 30, 2016, net cash provided by operating activities was $70.9 million, compared to $65.6 million in the same period of 2015.
For the nine months ended September 30, 2016, net cash used in investing activities was $51.0 million, compared to $82.7 million in the same period of 2015.
For the nine months ended September 30, 2016, net cash used in financing activities was $12.3 million, compared to net cash provided by financing activities of $38.1 million in the same period of 2015.
Non-GAAP Financial Measures
To supplement Daqo'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 our 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 element 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 would expect 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 revenue. ?Adjusted net income attributable to our 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 our 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 Eastern Time on November 15, 2016.
The dial-in details for the live conference call are as follows:
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Participant dial in (toll free): |
+1-888-346-8982 |
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Participant international dial in: |
+1-412-902-4272 |
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China mainland toll free: |
4001-201203 |
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China Beijing local toll: |
+86-10-5357-3132 |
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Hong Kong toll free: |
800-905945 |
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Hong Kong-local toll: |
+852-301-84992 |
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Participants please ask to be joined into the Daqo New Energy Corp. call. |
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You can also listen to the conference call via Webcast through the URL: http://mms.prnasia.com/DQ/20161115/default.aspx
A replay of the call will be available 1 hour after the end of the conference through November 22, 2016.
The conference call replay numbers are as follows:
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US Toll Free: |
1-877-344-7529 |
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International Toll: |
1-412-317-0088 |
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Canada Toll Free: |
855-669-9568 |
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Replay access code: |
10095716 |
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.
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 12,150 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 fourth quarter of 2016 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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Daqo New Energy Corp. |
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Unaudited Preliminary Condensed Consolidated Statement of Operations and Comprehensive Income |
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(US dollars in thousands, except ADS and per ADS data) |
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Three months Ended |
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Sep. 30, 2016 |
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Jun. 30, 2016 |
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Sep. 30, 2015 |
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Revenues?????? |
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$54,289 |
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$71,021 |
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$46,562 |
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Cost of revenues |
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(34,152) |
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(41,640) |
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(37,988) |
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Gross profit |
|
20,137 |
|
29,381 |
|
8,574 |
|
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Operating expenses |
|
|
|
|
|
|
|
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Selling, general and administrative expenses |
|
(4,858) |
|
(3,675) |
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(2,943) |
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|
Research and development expenses |
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(997) |
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(148) |
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(94) |
|
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Other operating income (expenses) |
|
2,166 |
|
583 |
|
1,114 |
|
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Total operating expenses |
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(3,689) |
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(3,240) |
|
(1,923) |
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Income from operations |
|
16,448 |
|
26,141 |
|
6,651 |
|
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Interest expense |
|
(3,076) |
|
(3,487) |
|
(3,062) |
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Interest income |
|
123 |
|
171 |
|
51 |
|
|
Foreign exchange gain (loss) |
|
(1) |
|
(3) |
|
1 |
|
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Income ?before income taxes |
|
13,494 |
|
22,822 |
|
3,641 |
|
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Income tax (expenses) benefit |
|
(2,163) |
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(2,802) |
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(559) |
|
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Net income |
|
11,331 |
|
20,020 |
|
3,082 |
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Net income attributable to non-controlling |
|
135 |
|
176 |
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- |
|
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Net income attributable to Daqo New Energy |
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$11,196 |
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$19,844 |
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$3,082 |
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|
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Net income |
|
11,331 |
|
20,020 |
|
3,082 |
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Other comprehensive income (loss): |
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Foreign currency translation adjustments |
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(882) |
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(8,116) |
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(5,815) |
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Total other comprehensive income (loss) |
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(882) |
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(8,116) |
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(5,815) |
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Comprehensive income (loss) |
|
10,449 |
|
11,904 |
|
(2,733) |
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Comprehensive income (loss) attributable to? |
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? 129 |
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? 130 |
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? - |
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Comprehensive income (loss) attributable to |
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? $10,320 |
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? $11,774 |
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$(2,733) |
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Earnings (loss) per ADS |
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?Basic |
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1.07 |
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1.90 |
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0.29 |
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?Diluted |
|
1.05 |
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1.87 |
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0.29 |
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Weighted average ADS outstanding |
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Basic |
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10,478,671 |
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10,457,105 |
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10,508,161 |
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Diluted |
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10,642,235 |
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10,596,753 |
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10,630,996 |
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Daqo New Energy Corp. |
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Unaudited Consolidated Balance Sheet |
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(US dollars in thousands) |
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Sep. 30, 2016 |
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Jun. 30, 2016 |
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Sep. 30, 2015 |
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ASSETS: |
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Current Assets: |
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Cash and cash equivalents |
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$21,630 |
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$29,659 |
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$27,955 |
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Restricted cash |
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7,531 |
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13,201 |
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40,729 |
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Accounts receivable, net |
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4,585 |
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10,061 |
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15,400 |
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Note receivables |
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17,037 |
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14,798 |
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16,474 |
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Prepaid expenses and other current assets |
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6,849 |
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6,630 |
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15,543 |
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Advances to suppliers |
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1,805 |
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1,072 |
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913 |
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Inventories |
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14,905 |
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9,539 |
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12,157 |
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Amounts due from related parties |
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1,869 |
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4,514 |
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2,421 |
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Total current assets |
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76,211 |
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89,474 |
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131,592 |
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Property, plant and equipment, net |
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561,324 |
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546,227 |
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557,737 |
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Prepaid land use right |
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25,971 |
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26,205 |
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27,867 |
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Deferred tax assets |
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610 |
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612 |
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- |
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Investment in an affiliate |
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182 |
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182 |
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- |
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Other non-current assets |
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- |
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- |
|
165 |
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TOTAL ASSETS |
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664,298 |
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662,700 |
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717,361 |
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Current liabilities: |
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|
|
|
|
|
|
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Short-term borrowings, including current portion of |
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? 98,630 |
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? 109,494 |
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? 115,159 |
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Accounts payable |
|
17,698 |
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18,665 |
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16,728 |
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Note payables |
|
14,440 |
|
26,092 |
|
52,248 |
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Advances from customers |
|
4,189 |
|
3,408 |
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7,282 |
|
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Payables for purchases of property, plant and |
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43,696 |
|
39,681 |
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51,359 |
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Accrued expenses and other current liabilities |
|
8,744 |
|
11,973 |
|
8,934 |
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Amounts due to related parties |
|
41,390 |
|
41,100 |
|
57,918 |
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Income tax payable |
|
4,658 |
|
3,411 |
|
201 |
|
|
Total current liabilities |
|
233,445 |
|
253,824 |
|
309,829 |
|
|
Long-term borrowings |
|
128,975 |
|
118,368 |
|
143,949 |
|
|
Other long Term Liabilities |
|
24,252 |
|
24,414 |
|
25,980 |
|
|
TOTAL LIABILITIES |
|
386,672 |
|
396,606 |
|
479,758 |
|
|
? EQUITY: |
|
|
|
|
|
|
|
|
Ordinary shares |
|
26 |
|
26 |
|
26 |
|
|
Treasury stock |
|
(1,749) |
|
(1,749) |
|
(1,149) |
|
|
Additional paid-in capital |
|
239,566 |
|
238,484 |
|
234,807 |
|
|
Accumulated income (losses) |
|
36,304 |
|
25,107 |
|
(12,681) |
|
|
Accumulated other comprehensive income |
|
1,841 |
|
2,717 |
|
14,084 |
|
|
Daqo New Energy Corp.'s shareholders' equity |
|
275,988 |
|
264,585 |
|
235,087 |
|
|
Noncontrolling interest |
|
1,638 |
|
1,509 |
|
2,516 |
|
|
Total equity |
|
277,626 |
|
266,094 |
|
237,603 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES & EQUITY |
|
664,298 |
|
662,700 |
|
717,361 |
|
?
?
|
Daqo New Energy Corp. |
|||||
|
Unaudited Consolidated Statements of Cash Flows |
|||||
|
(US dollars in thousands) |
|||||
|
|
For the nine months ended September 30, |
||||
|
|
|
2016 |
|
2015 |
|
|
Operating Activities: |
|
|
|
|
|
|
Net income |
|
39,741 |
|
3,338 |
|
|
Adjustments to reconcile net income to net cash provided by |
|
|
|
|
|
|
?? Share-based compensation |
|
2,260 |
|
3.413 |
|
|
?? Inventory write-down |
|
- |
|
62 |
|
|
?? Allowance / (reversal) for doubtful accounts |
|
(1,063) |
|
(824) |
|
|
?? Depreciation of property, plant and equipment |
|
25,727 |
|
22,230 |
|
|
Gain on disposal of assets |
|
(188) |
|
- |
|
|
|
|
|
|
|
|
|
????? Changes in operating assets and liabilities: |
|
|
|
|
|
|
?? Accounts receivable |
|
15,914 |
|
(6,976) |
|
|
?? Note receivables |
|
(6,221) |
|
32,582 |
|
|
?? Prepaid expenses and other current assets |
|
5,063 |
|
(3,009) |
|
|
?? Advances to suppliers |
|
(804) |
|
408 |
|
|
?? Inventories |
|
(4,472) |
|
(2,863) |
|
|
?? Amounts due from related parties |
|
(1,604) |
|
3,299 |
|
|
?? Amounts due to related parties |
|
771 |
|
1,922 |
|
|
?? Prepaid land use rights |
|
435 |
|
457 |
|
|
?? Accounts payable |
|
669 |
|
339 |
|
|
?? Note payables |
|
(5,242) |
|
13,973 |
|
|
?? Accrued expenses and other current liabilities |
|
355 |
|
189 |
|
|
?? Income tax payable |
|
3,718 |
|
201 |
|
|
?? Advances from customers |
|
(3,778) |
|
(3,176) |
|
|
?? Deferred government subsidies |
|
(334) |
|
48 |
|
|
Net cash provided by operating activities |
|
70,947 |
|
65,613 |
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(62,044) |
|
(68,745) |
|
|
Increase (decrease) in restricted cash |
|
11,028 |
|
(19,082) |
|
|
Proceeds from disposition of Nanjing Daqo |
|
- |
|
5,110 |
|
|
Investment in an affiliate |
|
(188) |
|
- |
|
|
Net cash used in investing activities |
|
(51,204) |
|
(82,717) |
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
Proceeds from related parties loans |
|
98,535 |
|
210,640 |
|
|
Repayment of related parties loans |
|
(103,174) |
|
(230,668) |
|
|
Proceeds from bank borrowings |
|
82,146 |
|
228,287 |
|
|
Repayment of bank borrowings |
|
(90,742) |
|
(200,247) |
|
|
Proceeds from follow-on equity offering |
|
- |
|
28,679 |
|
|
Issuance cost for follow-on equity offering |
|
- |
|
(682) |
|
|
Proceeds from options exercised |
|
949 |
|
276 |
|
|
Repurchase stock |
|
- |
|
(750) |
|
|
Proceeds from the issuance of additional ownership interests by |
|
? - |
|
? 2,516 |
|
|
Net cash provided by (used in) financing activities |
|
(12,286) |
|
38,051 |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalent |
|
(317) |
|
(60) |
|
|
Net increase in cash and cash equivalents |
|
7,140 |
|
20,887 |
|
|
Cash and cash equivalents at the beginning of the period |
|
14,490 |
|
7,068 |
|
|
Cash and cash equivalents at the end of the period |
|
21,630 |
|
27,955 |
|
?
?
|
Daqo New Energy Corp. |
|||||||
|
Reconciliation of non-GAAP financial measures to comparable US GAAP measures |
|||||||
|
(US dollars in thousands) |
|||||||
|
|
Three months Ended |
||||||
|
|
|
Sep. 30, 2016 |
|
Jun. 30, 2016 |
|
Sep. 30, 2015 |
|
|
Gross profit |
|
20,137 |
|
29,381 |
|
8,574 |
|
|
Costs related to the non-operational Chongqing |
|
1,501 |
|
1,775 |
|
2,327 |
|
|
Non-GAAP gross profit |
|
21,638 |
|
31,156 |
|
10,901 |
|
|
|
|
||||||
|
|
Three months Ended |
||||||
|
|
|
Sep. 30, 2016 |
|
Jun. 30, 2016 |
|
Sep. 30, 2015 |
|
|
Gross margin |
|
37.1% |
|
41.4% |
|
18.4% |
|
|
Costs related to the non-operational Chongqing |
|
2.8% |
|
2.5% |
|
5.0% |
|
|
Non-GAAP gross margin |
|
39.9% |
|
43.9% |
|
23.4% |
|
|
|
|
||||||
|
|
Three months Ended |
||||||
|
|
|
Sep. 30, 2016 |
|
Jun. 30, 2016 |
|
Sep. 30, 2015 |
|
|
Net income |
|
11,331 |
|
20,020 |
|
3,082 |
|
|
Income tax expense |
|
2,163 |
|
2,802 |
|
559 |
|
|
Interest expense |
|
3,076 |
|
3,487 |
|
3,062 |
|
|
Interest income |
|
(123) |
|
(171) |
|
(51) |
|
|
Depreciation |
|
8,522 |
|
8,598 |
|
8,305 |
|
|
EBITDA (non-GAAP) |
|
24,969 |
|
34,736 |
|
14,957 |
|
|
EBIDTA margin (non-GAAP) |
|
46.0% |
|
48.9% |
|
32.1% |
|
|
|
|
||||||
|
|
Three months Ended |
||||||
|
|
|
Sep. 30, 2016 |
|
Jun. 30, 2016 |
|
Sep. 30, 2015 |
|
|
Net income attributable to Daqo New Energy Corp. shareholders |
|
? 11,196 |
|
? 19,844 |
|
? 3,082 |
|
|
Costs related to the non-operational Chongqing |
|
1,501 |
|
1,775 |
|
2,327 |
|
|
Share-based compensation |
|
522 |
|
393 |
|
911 |
|
|
Adjusted Net income (non-GAAP) |
|
13,219 |
|
22,012 |
|
6,320 |
|
|
Adjusted Earnings per basic ADS (non-GAAP) |
|
$1.26 |
|
$2.10 |
|
$0.60 |
|
|
Adjusted Earnings per diluted ADS (non-GAAP) |
|
$1.24 |
|
$2.08 |
|
$0.59 |
|
?
For further information, please contact:
Daqo New Energy Corp.
Kevin He, Investor Relations
Phone: +86-187-1658-5553
Email: Kevin.he@daqo.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-third-quarter-2016-results-300362982.html
SOURCE Daqo New Energy Corp.