Xinjiang Daqo New Energy (688303) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 1.42 billion, down 60.01% year-over-year; net loss attributable to shareholders was RMB 429 million, a 162.27% decline.

• For the first nine months, revenue fell 53.37% to RMB 6.00 billion; net loss reached RMB 1.10 billion, down 121.49% year-over-year.

• The sharp decline was mainly due to persistent polysilicon price drops from supply-demand imbalance.

Financial highlights

• Gross margin and profitability deteriorated significantly, with basic and diluted EPS at -0.20 for Q3 and -0.51 for the nine months.

• Operating cash flow for the first nine months was negative RMB 4.40 billion, down 143.57% year-over-year.

• R&D investment for Q3 was RMB 59.65 million, down 87.42% year-over-year; R&D-to-revenue ratio was 4.2%.

• Total assets at Q3-end were RMB 46.92 billion, down 7.44% from year-end 2023.

Outlook and guidance

• Q4 polysilicon production is expected to remain under pressure due to ongoing industry overcapacity and low prices.

• Full-year 2024 polysilicon output is projected to be in line with annual maintenance and market trends.