Daqo New Energy Corp. (DQ), a Chinese maker of monocrystalline silicon and polysilicon for solar photovoltaic systems, on Monday reported a steep decline in net profit for the first-quarter. Earnings were impacted by decreased revenue reflecting a fall in Polysilicon average selling price and higher inventories.
Following the news, DQ was trading down by 3.66 percent at $22.87 in the pre-market trade on the New York Stock Exchange.
For the three-month period, the company reported a net income of $15.5 million, lesser than $278.804 million, registered for the same period last year.
Income per American Depository Share or ADS stood at $0.24, compared with $3.52 per ADS a year ago.
Excluding items, earnings were $36 million, down from $310.205 million in the previous year.
Daqo reported adjusted earnings per ADS of $0.55, compared with $3.93 a year ago.
Income before income taxes plunged to $42.510 million from last year's $475.762 million.
Excluding items, EBITDA stood at 76.9 million, versus previous year's $490.214 million.
Income from operations plunged to $30.5 million from last year's $463.802 million.
Revenues slipped to $415.3 million from $709.834 million in 2023.
Looking ahead, for the full year, Xiang Xu, CEO of Daqo New Energy, said: "We expect Q2 2024 total polysilicon production volume to be approximately 60,000 MT to 63,000 MT, similar to that of Q1 2024 as the Company maintains full production. We expect to finish construction and begin initial pilot production at our new Inner Mongolia Phase 5B facility in Q2 2024 and expect to ramp up to full production level by the end of Q3 2024. As a result, we anticipate full year 2024 production volume to be in the range of 280,000 MT to 300,000 MT, approximately 40% to 50% higher than that of 2023."
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