The following is a summary of the Daqo New Energy Corp. (DQ) Q4 2023 Earnings Call Transcript:
Financial Performance:
Daqo reported an annual polysilicon production volume of 197,831 metric tons, a 47.8% increase year on year.
Sales volume rose to 200,002 metric tons, a substantial 50% increase from 2022.
Revenue saw a decrease, dropping to $2.3 billion in 2023 from $4.6 billion in 2022 due to lowered polysilicon prices.
Gross margin remained strong at 39.9% for 2023, despite challenging market conditions.
Daqo generated around $1.6 billion in operating cash flow and had $3 billion in cash by the end of the year.
Q4 2023 revenue was $477 million, a slight decrease from Q3 2023's $484.8 million and a significantly lower than Q4 2022's $864.3 million.
The company posted a net income attributable to shareholders of $44.9 million in Q4 and earnings per basic ADS at $0.64.
Business Progress:
Increased yields and throughput were observed at the polysilicon facilities with Q4 production volume reaching 61,014 metric tons.
Daqo managed to cut down production costs, reflected in Q4's EBITDA of $128 million.
A projected poly production volume of 60,000 to 62,000 metric tons is expected for Q1 2024 and around 280,000-300,000 metric tons for the full year of 2024.
The new Inner Mongolia 5B facility is anticipated to begin production in Q2 2024.
Cost structure optimization through digital transformation and enhancements in N-type technology will be a focus in 2024.
The company plans to leverage its vast pool of production data and AI to boost efficiencies, productivity, and lower production costs.
Slight rebounds in N-type and P-type prices are expected in Q1 and Q2 2024, respectively, with demand for N-type polysilicon in a tight supply market predicted for the rest of the year.
R&D expenses in Q4 were $3.3 million, aimed at improving product quality.
The company is considering a potential share repurchase plan for 2024.
More details: Daqo New Energy IR
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