1. DQ reported a significant drop in Q4 revenues to $195.4 million. 2. Gross margin was -33.4%, reflecting ongoing market challenges. 3. 2024 saw net losses of $345.2 million, a stark contrast to 2023 profits. 4. Polysilicon production is expected to drop sharply in 2025. 5. DQ maintains a solid liquidity position with $1 billion in cash.
The drastic decline in revenues and severe losses indicate unsustainable operations, similar to historical downturns in commodity markets that led to stock price collapses.
The financial performance and outlook presented can heavily influence market sentiment and investment decisions related to DQ.
Market conditions suggest prolonged oversupply and low prices for polysilicon, which will likely impair investor confidence in DQ's recovery prospects.
Daqo New Energy, a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced its unaudited financial results for the fourth quarter and fiscal year of 2024.
| Three months ended | US$ millions except as indicated otherwise | December 31, 2024 | September 30, 2024 | December 31, 2023 |
|---|---|---|---|---|
| Revenues | 195.4 | 198.5 | 476.3 | |
| Gross (loss)/profit | (65.3) | (60.6) | 87.2 | |
| Gross margin | (33.4) % | (30.5) % | 18.3 % | |
| (Loss)/income from operations | (300.9) | (98.0) | 83.3 | |
| Net (loss)/income attributable to Daqo New Energy Corp. shareholders | (180.2) | (60.7) | 53.3 | |
| (Loss)/Earnings per basic ADS | (2.71) | (0.92) | 0.76 | |
| Adjusted net (loss)/income (non-GAAP) attributable to Daqo New Energy Corp. shareholders | (170.6) | (39.4) | 74.3 |
Mr. Xiang Xu, Chairman and CEO of the Company, commented, "In 2024, we faced a challenging market environment with excess capacity in the solar PV industry leading to sharp price declines across the entire value chain. We proactively managed these difficulties by curtailing polysilicon production to reduce cash burn, particularly in the third and fourth quarters. Nevertheless, we reached an annual polysilicon production volume of 205,068 MT in 2024, meeting our guidance of 200,000 MT to 210,000 MT, which represented an increase of 3.7% year-over-year compared to 197,831 MT in 2023."
"On the operational front, during the fourth quarter, the Company continued to operate at a lower utilization rate of 40%-50% of our nameplate capacity in light of weak market prices. The total production volume at our two polysilicon facilities for the quarter was 34,236 MT, further decreasing from the third quarter by 9,356 MT."
The Company expects to produce approximately 25,000MT to 28,000MT of polysilicon during the first quarter of 2025. The Company expects to produce approximately 110,000MT to 140,000MT of polysilicon for the full year of 2025, inclusive of the impact of the Company's annual facility maintenance.
The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on February 27, 2025.
Participant dial in (U.S. toll free): +1-888-346-8982
Webcast link: Webcast
Daqo New Energy Corp. (NYSE: DQ) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufacturers.