Xinjiang Daqo New Energy (688303) H2 2024 earnings summary

Executive summary

• 2024 saw a sharp downturn in performance, with revenue down 54.62% year-over-year and a net loss of ¥2,718 million attributable to shareholders, mainly due to a steep decline in polysilicon prices and industry overcapacity.

• The company responded with cost reduction, digital transformation, and R&D, but industry headwinds led to negative gross margins and significant asset impairments.

• No cash dividend or bonus shares were distributed for 2024; instead, a share buyback of ¥54.96 million was executed, representing 2.02% of net loss.

Financial highlights

• Revenue: ¥7,410.5 million, down 54.62% year-over-year.

• Net loss attributable to shareholders: ¥2,718.1 million, down 147.17% year-over-year.

• Gross margin: 1.07%, down 39.28 percentage points year-over-year.

• Basic and diluted EPS: -¥1.27, down from ¥2.70 last year.

• Operating cash flow: -¥5,386.1 million, down 161.62% year-over-year.

• R&D investment: ¥387.1 million, 5.22% of revenue.

Outlook and guidance

• The company will focus on high-quality, low-cost N-type silicon, expand into semiconductor-grade polysilicon, and continue digital and green transformation.

• Industry is expected to stabilize in 2025 with policy and technology support, but overcapacity and price pressure remain risks.