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Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2020 Results

Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2020 Results

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SHANGHAI: 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 fourth quarter and fiscal year of 2020.

Fourth Quarter 2020 Financial and Operating Highlights

  • Polysilicon production volume was 21,008 MT in Q4 2020, compared to 18,406 MT in Q3 2020
  • Polysilicon sales volume was 23,186 MT in Q4 2020, compared to 13,643 MT in Q3 2020
  • Polysilicon average total production cost(1) was $5.92/kg in Q4 2020, compared to $5.82/kg in Q3 2020
  • Polysilicon average cash cost(1) was $5.04/kg in Q4 2020, compared to $4.88/kg in Q3 2020
  • Polysilicon average selling price (ASP) was $10.79/kg in Q4 2020, compared to $9.13/kg in Q3 2020
  • Revenue was $247.7 million in Q4 2020, compared to $125.5 million in Q3 2020
  • Gross profit was $109.5 million in Q4 2020, compared to $45.3 million in Q3 2020. Gross margin was 44.2% in Q4 2020, compared to 36.0% in Q3 2020
  • Net income attributable to Daqo New Energy Corp. shareholders was $72.8 million in Q4 2020, compared to $20.8 million in Q3 2020
  • Earnings per basic American Depositary Share (ADS)(3) was $1.01 in Q4 2020, compared to $0.29 in Q3 2020
  • EBITDA (non-GAAP)(2) was $115.1 million in Q4 2020, compared to $51.6 million in Q3 2020. EBITDA margin (non-GAAP)(2) was 46.5% in Q4 2020, compared to 41.1% in Q3 2020
  • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $77.3 million in Q4 2020, compared to $25.2 million in Q3 2020
  • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $1.07 in Q4 2020, compared to $0.35 in Q3 2020
Three months ended
US$ millions

except as indicated otherwise

Dec 31,
2020
Sep 30,
2020
Dec 31,
2019
Revenues247.7125.5118.9
Gross profit109.545.335.1
Gross margin44.2%36.0%29.5%
Income from operations98.033.330.1
Net income attributable to Daqo New Energy Corp.
shareholders
72.820.820.1
Earnings per basic ADS(3) ($ per ADS)1.010.290.29
Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders
77.325.224.5
Adjusted earnings per basic ADS(3) (non-GAAP)(2)
($ per ADS)
1.070.350.35
EBITDA (non-GAAP)(2)115.151.645.4
EBITDA margin (non-GAAP)(2)46.5%41.1%38.2%
Polysilicon sales volume (MT)23,18613,64313,291
Polysilicon average total production cost ($/kg)(1)5.925.826.38
Polysilicon average cash cost (excl. dep’n) ($/kg)(1)5.044.885.47

Full Year 2020 Financial and Operating Highlights

  • Polysilicon production volume was 77,288 MT in 2020, compared to 41,556 MT in 2019
  • Polysilicon sales volume was 74,812 MT in 2020, compared to 38,110 MT in 2019
  • Revenue was $675.6 million in 2020, compared to $350.0 million in 2019
  • Gross profit was $234.0 million in 2020, compared to $80.1 million in 2019. Gross margin was 34.6% in 2020, compared to 22.9% in 2019
  • EBITDA (non-GAAP)(2) was $256.5 million in 2020, compared to $95.3 million in 2019
  • EBITDA margin (non-GAAP)(2) was 38.0% in 2020, compared to 27.2% in 2019
  • Net income attributable to Daqo New Energy Corp. shareholders was $129.2 million in 2020, compared to $29.5 million in 2019
  • Earnings per basic ADS was $1.82 in 2020, compared to $0.43 in 2019
  • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $147.1 million in 2020, compared to $47.4 million in 2019
  • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $2.07 in 2020, compared to $0.70 in 2019

Notes:

(1) 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 indicated. Cash cost
is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation expense, divided by the production
volume in the period indicated.

(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and
adjusted earnings per basic 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.

(3) ADS means American Depositary Share. On November 17, 2020, the Company effected a change of the ratio of its ADSs to ordinary
shares from one (1) ADS representing twenty-five (25) ordinary shares to one (1) ADS representing five (5) ordinary shares. The
earnings per ADS and number of ADS information has been retrospectively adjusted to reflect the change for all periods presented.

Management Remarks

Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “We are very pleased to report a strong quarter in terms of operational and financial results to bring a successful close of the year 2020. I would like to thank our entire team for their hard work, commitment and dedication in achieving these excellent results. During the quarter we produced 21,008 MT of polysilicon, a record-high in our company’s history. Our production cost was reduced by 2.7% in RMB terms, primarily due to our efforts in additional energy savings, offset by a higher than expected rise in the cost of silicon raw material in the fourth quarter. The increase in our cost in US dollar terms compared to the third quarter was the result of exchange rate fluctuations due to the RMB appreciation. In 2021, we will continue our efforts to reduce cost, as we begin to benefit from our newly implemented digital manufacturing system to maximize our output, optimize our production process and further improve our operational stability and product quality.”

“During the months of November and December 2020, we saw significant pick-up in polysilicon demand from our customers to meet their increasing production needs to serve the growing solar end-market. During the fourth quarter, we sold 23,186 MT of polysilicon, which is the highest quarterly sales volume the company ever achieved. Since the beginning of 2021, we continue to see rising polysilicon market prices, and most recently market poly ASP has reached a range of $15/kg to $16/kg. As our mono-wafer customers continue their capacity expansion plans supported by robust downstream market demand, we believe that the supply of polysilicon will continue to be very tight throughout the year given very limited additional polysilicon supply this year.”

“Regarding the status of the proposed initial public offering of our Xinjiang Daqo subsidiary on China’s STAR market, the stock listing committee of the Shanghai Stock Exchange STAR Market reviewed Xinjiang Daqo’s application in February 2021 and determined that Xinjiang Daqo had already met the offering, listing and disclosure requirements related to its potential STAR Market IPO. As a next step, Xinjiang Daqo will need to go through the registration process with the China Securities Regulatory Commission before its STAR Market IPO can take place. The proceeds of this potential IPO will be used to fund our Phase 4B polysilicon project with an annual capacity of 35,000 MT. We have already started the preparation works for Phase 4B including the design and procurement process. We plan to start the construction in mid-March and expect to complete the project by the end of 2021 and ramp it up to full capacity by the end of Q1 2022.”

“I have been in the solar industry for over a decade, and the prospects for the solar industry have never been brighter. Driven by the dual trends of solar grid parity and the urgent need to address climate change, the industry is on the cusp of undergoing tremendous growth over the next few years without the need for government subsidies. Solar energy is now one of the most competitive form of power generation even compared to fossil fuel, and we are beginning to see real world applications where solar is the optimal choice to meet growing energy needs and to replace legacy carbon-based generation. Major economies around the world have also begun to implement ambitious policies and initiatives to support and mandate the use of renewable energy for power generation. The European Union has announced its Green Deal to fight climate change through progressive policies for a climate-neutral and sustainable EU with the goal of no net emissions of greenhouse gases by 2050 and to de-carbonize the energy sector. Over the next few years, the European Climate Law is expected to turn this political commitment into a legal obligation. In China, President Xi Jinping has announced China will aim to hit peak emissions before 2030 and reach carbon neutrality by 2060 and we expect various government agencies including the NEA and the NDRC to introduce and implement policies to mandate and support the use of renewable energy. For 2021, the NEA has indicated its intention to accelerate the development and deployment of wind and solar energy, with a goal of adding a combined 120GW of wind and solar in 2021. In the U.S., with the Biden administration’s commitment to fight climate change and plan for clean energy revolution with the goal of achieving a 100% clean energy economy and reaching net-zero emissions no later than 2050, we believe favorable policies are forthcoming to support renewable energy’s growth in the U.S.”

“We are standing at the beginning of a new era that will demand more and more clean, renewable and cost effective energy resources among which solar PV is one of the most competitive. We will focus on our core business, continue to expand capacity and further improve quality to better serve the fast growing solar PV market.”

Outlook and guidance

The Company expects to produce approximately 19,500MT to 20,500MT of polysilicon and sell approximately 20,000MT to 21,000MT of polysilicon to external customers during the first quarter of 2021. For the full year of 2021, the Company expects to produce approximately 80,000 to 81,000 MT of polysilicon, inclusive of the impact of the Company’s annual facility maintenance.

This outlook reflects Daqo New Energy’s current and preliminary view as of the date of this press release and may be subject to changes. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.

Fourth Quarter 2020 Results

Revenues

Revenues were $247.7 million, compared to $125.5 million in the third quarter of 2020 and $118.9 million in the fourth quarter of 2019. The increase in revenues was primarily due to higher polysilicon sales volume and higher ASPs.

Gross profit and margin

Gross profit was $109.5 million, compared to $45.3 million in the third quarter of 2020 and $35.1 million in the fourth quarter of 2019. Gross margin was 44.2%, compared to 36% in the third quarter of 2020 and 29.5% in the fourth quarter of 2019. The increase in gross margin was primarily due to higher ASPs.

Selling, general and administrative expenses

Selling, general and administrative expenses were $11.2 million, compared to $9.2 million in the third quarter of 2020 and $9.0 million in the fourth quarter of 2019. The increase was primarily due to an increase in shipping costs as a result of higher sales volume, as well as an increase in personnel cost. SG&A expenses during the quarter included $4.5 million in non-cash share-based compensation costs related to the Company’s share incentive plan.

Research and development expenses

Research and development (R&D) expenses were $1.5 million, compared to $1.7 million in the third quarter of 2020 and $1.2 million in the fourth quarter of 2019. Research and development expenses can vary from period to period and reflect R&D activities that take place during the quarter.

Income from operations and operating margin

As a result of the foregoing, income from operations was $98.0 million, compared to $33.3 million in the third quarter of 2020 and $30.1 million in the fourth quarter of 2019.

Operating margin was 39.6%, compared to 26.6% in the third quarter of 2020 and 25.3% in the fourth quarter of 2019.

Interest expense

Interest expense was $8.3 million, compared to $5.4 million in the third quarter of 2020 and $3.9 million in the fourth quarter of 2019. The increase was primarily due to an increase in interest expense for discounted bank notes.

EBITDA (non-GAAP)

EBITDA (non-GAAP) was $115.1 million, compared to $51.6 million in the third quarter of 2020 and $45.4 million in the fourth quarter of 2019. EBITDA margin (non-GAAP) was 46.5%, compared to 41.1% in the third quarter of 2020 and 38.2% in the fourth quarter of 2019.

Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

As a result of the aforementioned, net income attributable to Daqo New Energy Corp. shareholders was $72.8 million, compared to $20.8 million in the third quarter of 2020 and $20.1 million in the fourth quarter of 2019.

Earnings per basic American Depository Share (ADS) was $1.01, compared to $0.29 in the third quarter of 2020, and $0.29 in the fourth quarter of 2019.

Financial Condition

As of December 31, 2020, the Company had $118.4 million in cash and cash equivalents and restricted cash, compared to $109.8 million as of September 30, 2020 and $115.3 million as of December 31, 2019. As of December 31, 2020, the notes receivable balance was $0.2 million, compared to $1.9 million as of September 30, 2020 and $5.6 million as of December 31, 2019. As of December 31, 2020, total borrowings were $193.7 million, of which $123.2 million were long-term borrowings, compared to total borrowings of $271.0 million, including $140.0 million long-term borrowings, as of September 30, 2020 and total borrowings of $280.1 million, including $151.5 million long-term borrowings, as of December 31, 2019.

Cash Flows

For the twelve months ended December 31, 2020, net cash provided by operating activities was $209.7 million, compared to $181.0 million in the same period of 2019.

For the twelve months ended December 31, 2020, net cash used in investing activities was $118.5 million, compared to $261.8 million in the same period of 2019. The net cash used in investing activities in 2020 and 2019 was primarily related to the capital expenditures on the Company’s Phase 4A polysilicon projects.

For the twelve months ended December 31, 2020, net cash used in financing activities was $95.5 million, compared to net cash provided by financing activities of $102.3 million in the same period of 2019.

Full Year 2020 Results

Revenues

Revenues were $675.6 million, compared to $350.0 million in 2019. The increase was primarily due to higher polysilicon sales volume and partially offset by slightly lower ASPs.

Gross profit and margin

Gross profit was $234.0 million, compared to $80.1 million in 2019. Gross margin was 34.6%, compared to 22.9% in 2019. The increase was primarily due to lower production cost partially offset by slightly lower ASPs.

Selling, general and administrative expenses

Selling, general and administrative expenses were $39.5 million, compared to $32.9 million in 2019. The increase was primarily due to an increase in shipping costs as a result of higher sales volume, as well as an increase in personnel cost.

Research and development expenses

Research and development (R&D) expenses were $6.9 million, compared to $5.3 million in 2019. Research and development expenses can vary from period to period and reflect R&D activities that took place during the period.

Income from operations and operating margin

As a result of the foregoing, income from operations was $187.9 million, compared to $47.5 million in 2019. Operating margin was 27.8%, compared to 13.6% in 2019.

Interest expense

Interest expense was $26.6 million, compared to $10.4 million in 2019. The increase was primarily due to a decrease of capitalized interest expense.

Income tax expense

Income tax expense was $28.2 million, compared to $9.6 million in 2019. The increase was primarily due to higher income before income taxes.

Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

Net income attributable to Daqo New Energy Corp. shareholders was $129.2 million, compared to $29.5 million in 2019. Earnings per basic ADS was $1.82, compared to $0.43 in 2019.

Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $147.1 million, compared to $47.4 million in 2019. Adjusted earnings per basic ADS (non-GAAP) was $2.07, compared to $0.70 in 2019.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy’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 earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our 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, our 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. Our 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 our 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 our 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.

The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our 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 March 9, 2021. (9:00 PM Beijing / Hong Kong time on the same day).

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

Participant dial in (toll free):+1-888-346-8982
Participant international dial in:+1-412-902-4272
China mainland toll free:4001-201203
Hong Kong toll free:800-905945
Hong Kong-local toll:+852-301-84992
 

Participants please dial in 10 minutes before the call is scheduled to begin and ask to be
joined into the Daqo New Energy Corp. call.

You can also listen to the conference call via Webcast through the URL:

 https://services.choruscall.com/links/dq210309.html

The conference call replay numbers are as follows:

US Toll Free:+1-877-344-7529
International Toll:+1-412-317-0088
Canada Toll Free:855-669-9568
Replay access code:10152748

To access the replay using an international dial-in number, please select the link below.

https://services.choruscall.com/ccforms/replay.html
Participants will be required to state their name and company upon entering the call.

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) (“Daqo” or the “Company”) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company is one of the world’s lowest cost producers of high-purity polysilicon. Daqo’s highly-efficient and technically advanced manufacturing facility in China currently has a nameplate annual polysilicon production capacity of 70,000 metric tons. A replay of the call will be available 1 hour after the end of the conference through March 16, 2021.

Daqo New Energy Corp.
Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income
(US dollars in thousands, except ADS and per ADS data)
Three months EndedYear Ended Dec 31,
Dec 31,
2020
Sep 30,
2020
Dec 31,
2019
20202019
Revenues$247,725$125,529$118,918$675,602$349,991
Cost of revenues(138,238)(80,276)(83,800)(441,610)(269,887)
Gross profit109,48745,25335,118233,99280,104
Operating expenses
Selling, general and
administrative expenses
 

(11,236)

(9,223) 

(8,987)

(39,472) 

(32,907)

Research and development
expenses
(1,498)(1,746)(1,206)(6,856) 

(5,258)

Other operating income1,226(954)5,1641915,546
Total operating
(expenses) / income
(11,508)(11,923)(5,029)(46,137)(32,619)
Income from operations97,97933,33030,089187,85547,485
Interest expense(8,254)(5,438)(3,936)(26,632)(10,397)
Interest income187200208907983
Foreign exchange gain / (loss)40(185)
Income before income taxes89,91228,09226,365162,13037,886
Income tax expense(13,606)(6,193)(5,972)(28,182)(9,623)
Net income from continuing
operations
76,30621,899 

20,393

133,948 

28,263

Net (loss) / income from
discontinued operations
 

(306)

(141) 

1,261

Net income76,30621,89920,087133,80729,524
Net (loss) / income attributable
to non-controlling interest
3,4801,142 

(1)

4,612 

(1)

Net income attributable to Daqo
New Energy Corp.
shareholders
$72,826$20,757$20,088$129,195$29,525
Net income76,30621,89920,087133,80729,524
Other comprehensive income /
(loss):
Foreign currency translation
adjustments
31,10725,93713,89248,438 

(6,702)

Total other comprehensive
income / (loss)
31,10725,93713,89248,438 

(6,702)

Comprehensive income / (loss)107,41347,83633,979182,24522,822
Comprehensive income
attributable to non-controlling
interest
5,6981,16326,8452
Comprehensive income / (loss)
attributable to Daqo New
Energy Corp. shareholders
 

 

$101,715

 

 

$46,673

 

 

$33,977

 

 

$175,400

 

 

$22,820

Earnings / (Loss) per ADS
-Continuing operations1.010.290.291.820.41
    -Discontinued operations0.000.000.000.000.02
 Basic1.010.290.291.820.43
-Continuing operations0.960.270.261.720.39
    -Discontinued operations0.000.000.000.000.02
 Diluted0.960.270.261.720.41
Weighted average ADS
outstanding
Basic72,147,80871,281,18469,186,25071,017,40367,914,211
Diluted76,065,03376,626,37175,927,96175,003,43071,466,701

 

 

Daqo New Energy Corp.
Unaudited Consolidated Balance Sheets
(US dollars in thousands)
Dec 31, 2020Sep 30, 2020Dec 31, 2019
ASSETS:
Current Assets:
Cash and cash equivalents76,59670,150$51,840
Restricted cash41,80839,64062,609
Accounts receivable, net4213
Notes receivable1531,9085,644
Prepaid expenses and other
current assets
11,47712,972 

15,344

Advances to suppliers7,9491,2291,544
Inventories42,15953,64036,391
Amount due from related parties12921317
Current assets associated with
discontinued operation
 

926

Total current assets180,271179,794174,328
Property, plant and equipment, net1,027,086987,295995,027
Prepaid land use right30,82929,81529,593
Deferred tax assets1,3861,352
Investment in affiliate685658642
Operating lease right-of-use assets119137 

197

Other non-current assets153147
Non-current asset associated with
discontinued operation
 

217

                 TOTAL ASSETS1,239,1431,199,2321,201,356
Current liabilities:
Short-term borrowings, including
current portion of long-term borrowings
70,431131,064 

 

128,612

Accounts payable18,95319,73912,713
Notes payable49,35562,128101,171
Advances from customers-short term portion37,78317,54433,028
Payables for purchases of property,
plant and equipment
49,55576,158112,538
Accrued expenses and other
current liabilities
30,14816,616 

12,222

Amount due to related parties5,1504,82038,825
Income tax payable22,6787,3144,789
Lease liabilities – short term portion827885
Current liabilities associated with
discontinued operation
 

 

 

1,165

 Total current liabilities284,135335,461445,148
Long-term borrowings123,222139,967151,518
Advance from customers – long
term portion
3,2651,266 

2,154

Amount due to related parties –
long term portion
4,23810,897 

7,899

Deferred government subsidies21,90721,15721,034
Deferred Tax Liabilities3,4615,6476,368
Lease liabilities – long term portion77
TOTAL LIABILITIES440,228514,395634,198
 

EQUITY:

Ordinary shares373635
Treasury stock(1,749)(1,749)(1,749)
Additional paid-in capital412,450405,784387,371
Accumulated gains330,118257,292200,922
Accumulated other comprehensive
income/(loss)
26,267(2,622) 

(19,937)

Total Daqo New Energy Corp.’s
shareholders’ equity
767,123658,741 

566,642

Non-controlling interest31,79226,096516
Total equity798,915684,837567,158
TOTAL LIABILITIES & EQUITY1,239,1431,199,2321,201,356

 

 

Daqo New Energy Corp.
Unaudited Consolidated Statements of Cash Flows
(US dollars in thousands)
For the year ended December 31,
20202019
Operating Activities:
Net income$ 133,807$ 29,524
Less: (Loss)/ income from discontinued operations, net of tax(141)1,261
Net income from continuing operations133,94828,263
Adjustments to reconcile net income to net cash provided by
operating activities:
90,26965,644
Changes in operating assets and liabilities(14,464)86,076
Net cash provided by operating activities-continuing operations209,753179,983
Net cash (used in)/ provided by operation activities-discontinued
operations
(50)1,010
Net cash provided by operating activities209,703180,993
Investing activities:
Net cash used in investing activities-continuing operations(118,292)(263,284)
Net cash (used in)/ provided by investing activities-discontinuing
operations
(195)1,457
Net cash used in investing activities(118,487)(261,827)
Financing activities:
Net cash (used in)/ provided by financing activities – continuing
operations
(95,470)104,979
Net cash used in financing activities – discontinued operations(2,651)
Net cash (used in)/provided by financing activities(95,471)102,328
 

Non-cash transactions

Effect of exchange rate changes7,364(1,320)
Net increase in cash, cash equivalents and restricted cash3,11020,174
Cash, cash equivalents and restricted cash at the beginning of the
year
115,29495,120
Cash, cash equivalents and restricted cash at the end of the year118,404115,294

 

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.

Dec 31, 2020Dec 31, 2019
Cash and cash equivalents76,59652,685
Restricted cash41,80862,609
Total cash, cash equivalents, and restricted cash shown in the
statement of cash flows
118,404115,294

 

 

Daqo New Energy Corp.
Reconciliation of non-GAAP financial measures to comparable US GAAP measures
(US dollars in thousands)
Three months EndedYear ended
Dec. 31,
2020
Sep. 30,
2020
Dec. 31,
2019
Dec. 31,
2020
Dec. 31,
2019
Net income from continuing
operations
76,30621,899 

20,393

133,948 

28,263

Income tax expense13,6066,1935,97228,1829,623
Interest expense8,2545,4383,93626,63210,397
Interest income(187)(200)(208)(907)(983)
Depreciation & amortization17,11818,28915,28168,68648,003
EBITDA (non-GAAP)115,09751,61945,374256,54195,303
EBIDTA margin (non-GAAP)46.5%41.1%38.2%38.0%27.2%

 

 

Three months EndedYear ended
Dec. 31,
2020
Sep. 30,
2020
Dec. 31,
2019
Dec. 31,
2020
Dec. 31,
2019
Net income / (loss)
attributable to Daqo New
Energy Corp. shareholders
72,82620,75720,088129,19529,525
Share-based compensation4,4784,4784,46117,90817,897
Adjusted net income (non-
GAAP) attributable to Daqo
New Energy Corp. shareholders
77,30425,23524,549147,10347,422
Adjusted earnings per basic
ADS (non-GAAP)
 

$1.07

 

$0.35

 

$0.35

 

$2.07

 

$0.70

Adjusted earnings per diluted
ADS (non-GAAP)
$1.02$0.33$0.32$1.96$0.66

For more information, please visit www.dqsolar.com

Source:  Daqo New Energy Corp.
Anand Gupta Editor - EQ Int'l Media Network