Xinjiang Daqo New Energy (688303) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 4.58 billion, down 50.84% year-over-year due to a sharp decline in polysilicon prices amid supply-demand imbalance.

• Net loss attributable to shareholders was RMB 670 million, compared to a net profit of RMB 4.43 billion in H1 2023.

• Polysilicon output reached 127,239 tons, up 60.75% year-over-year, with sales volume at 97,069 tons, up 26.34%.

• N-type monocrystalline silicon material accounted for over 70% of output, with monocrystalline material exceeding 99% of total.

• The company remains a top-tier domestic polysilicon producer, holding a 12% market share in China.

Financial highlights

• Operating income: RMB 4.58 billion, down 50.84% year-over-year.

• Net loss attributable to shareholders: RMB 670 million, down 115.14% year-over-year.

• Operating cash flow: -RMB 3.47 billion, down 164.07% year-over-year.

• Basic and diluted EPS: -0.31 yuan, down from 2.07 yuan in H1 2023.

• Gross margin and profitability declined sharply due to polysilicon price collapse.

Outlook and guidance

• Q3 2024 polysilicon output expected at 43,000–46,000 tons; full-year 2024 output guidance revised to 210,000–220,000 tons.

• Company will continue to expand overseas sales and adjust production load to control costs and maintain profitability.

• Management remains optimistic on long-term industry prospects despite current price volatility.