Daqo New Energy Announces Unaudited Third Quarter 2020 Results
SHANGHAI, Nov. 23, 2020 /PRNewswire/ -- 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 third quarter of 2020.
Third Quarter 2020 Financial and Operating Highlights
-- Polysilicon production volume was 18,406 MT in Q3 2020, compared to
18,097 MT in Q2 2020
-- Polysilicon sales volume was 13,643 MT in Q3 2020, compared to 18,881 MT
in Q2 2020
-- Polysilicon average total production cost((1)) was $5.82/kg in Q3 2020,
compared to $5.79/kg in Q2 2020
-- Polysilicon average cash cost((1)) was $4.88/kg in Q3 2020, compared to
$4.87/kg in Q2 2020
-- Polysilicon average selling price (ASP) was $9.13/kg in Q3 2020,
compared to $7.04/kg in Q2 2020
-- Revenue was $125.5 million in Q3 2020, compared to $133.5 million in Q2
2020
-- Gross profit was $45.3 million in Q3 2020, compared to $22.7 million in
Q2 2020. Gross margin was 36.0% in Q3 2020, compared to 17.0% in Q2 2020
-- Net income attributable to Daqo New Energy Corp. shareholders was $20.8
million in Q3 2020, compared to $2.4 million in Q2 2020
-- Earnings per basic American Depositary Share (ADS)((3)) was $0.29 in Q3
2020, compared to $0.03 in Q2 2020
-- EBITDA (non-GAAP)((2)) was $51.6 million in Q3 2020, compared to $26.8
million in Q2 2020. EBITDA margin (non-GAAP)((2)) was 41.1% in Q3 2020,
compared to 20.0% in Q2 2020
-- Adjusted net income (non-GAAP)((2)) attributable to Daqo New Energy
Corp. shareholders was $25.2 million in Q3 2020, compared to $6.9
million in Q2 2020
-- Adjusted earnings per basic ADS((3)) (non-GAAP)((2)) was $0.35 in Q3
2020, compared to $0.10 in Q2 2020
Three months ended
US$ millions Sep 30, Jun 30, Sep 30,
2020 2020 2019
except as indicated
otherwise
---
Revenues 125.5 133.5 83.9
---
Gross profit 45.3 22.7 18.1
---
Gross margin 36.0% 17.0% 21.5%
---
Income from operations 33.3 10.8 8.8
---
Net income attributable
to Daqo New Energy
Corp. 20.8 2.4 5.0
shareholders
---
Earnings per basic ADS
($ per ADS)(3) 0.29 0.03 0.07
---
Adjusted net income
(non-GAAP)(2)
attributable to 25.2 6.9 9.5
Daqo New Energy Corp.
shareholders
---
Adjusted earnings per
basic ADS (non-
GAAP)(2) 0.35 0.10 0.14
($ per ADS) (3)
---
EBITDA (non-GAAP)(2) 51.6 26.8 19.7
---
EBITDA margin (non-
GAAP)(2) 41.1% 20.0% 23.5%
---
Polysilicon sales volume
(MT) 13,643 18,881 9,238
---
Polysilicon average
total production cost
($/kg)(1) 5.82 5.79 6.97
---
Polysilicon average cash
cost (excl. dep'n)
($/kg)(1) 4.88 4.87 5.85
---
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 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, "During the third quarter of 2020, we successfully completed the annual maintenance and several technology improvement projects at our polysilicon manufacturing facilities. We resumed full production in August with excellent operational results. For the third quarter, we produced 18,406 MT of polysilicon among which approximately 97.7% was mono-grade. We continued our relentless drive to lower production cost and reached a record-low cost in Renminbi terms. During the third quarter, we completed our digital transformation project, with a fully digitized manufacturing system that allows us to continuously improve our process control and analyze our manufacturing data so as to achieve better results in system stability, manufacturing efficiencies, production cost and product quality in future. As our facilities are now running with increased efficiency, we expect to achieve a higher production volume of approximately 19,500-20,500 MT in the fourth quarter, with a potential cost reduction by approximately 3% as compared to the third quarter."
"During the quarter, polysilicon ASPs increased rapidly due to the quick recovery in solar PV demand from both domestic and foreign markets. Our ASP was $9.13/kg, a significant improvement from approximately $7.04/kg in the second quarter. With robust market demand for mono-grade polysilicon, we expect our ASP to improve meaningfully in the fourth quarter as compared to the third quarter. In recent weeks, because of strong solar module and installation demand, we began to see solar glass capacity shortage becoming a bottleneck for the solar industry and limiting module production. We expect the shortage of solar glass to ease over the coming months as additional solar glass capacity comes online. The temporary constraint on the industry's utilization rate will be removed which eventually will increase demand for polysilicon."
"Solar is now becoming one of the most competitive sources of energy, even compared to traditional power generation methods. Globally, we are seeing strong momentum around the world in adopting and implementing renewable energy policies that would strongly benefit the solar end market. Last month, Mr. Xi Jinping, President of China, announced China's initiative to scale up the national contributions to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. We believe favorable policies benefiting solar will be implemented during the upcoming 14th five-year-plan, driving a substantial increase in solar installations in China. In addition, a growing number of countries and regions, including the most important economies in the world, have announced goals and plans to reduce carbon emission and widely adopt renewable energies. In particular, we are starting to see the trend of utility-scale solar generation combined with power storage providing base-load energy and replacing and displacing coal power plants. We believe this is the beginning of a long term trend of solar displacing traditional fossil-fuel based generation driven by both economics and renewable energy mandates. We are strongly committed to contributing our efforts as a raw material provider for mainstream solar PV modules and are fully confident we will benefit from this fast-growing market."
Outlook and guidance
The Company expects to produce approximately 19,500 to 20,500 MT of polysilicon and sell approximately 20,500 MT to 21,500 MT of polysilicon to external customers during the third quarter of 2020. For the full year of 2020, the Company expects to produce approximately 75,800 MT to 76,800 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.
Third Quarter 2020 Results
Revenues
Revenues were $125.5 million, compared to $133.5 million in the second quarter of 2020 and $83.9 million in the third quarter of 2019. The sequential decrease in revenues was primarily due to lower polysilicon sales volume despite higher ASP.
Gross profit and margin
Gross profit was $45.3 million, compared to $22.7 million in the second quarter of 2020 and $18.1 million in the third quarter of 2019. Gross margin was 36.0%, compared to 17.0% in the second quarter of 2020 and 21.5% in the third quarter of 2019. The increase in gross margin was primarily due to improvement in production costs and higher ASP.
Selling, general and administrative expenses
Selling, general and administrative expenses were $9.2 million, compared to $10.1 million in the second quarter of 2020 and $8.2 million in the third quarter of 2019. SG&A expenses during the quarter included $4.0 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 $1.7 million, compared to $2.0 million in the second quarter of 2020 and $1.2 million in the third 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 $33.3 million, compared to $10.8 million in the second quarter of 2020 and $8.8 million in the third quarter of 2019. Operating margin was 26.6%, compared to 8.1% in the second quarter of 2020 and 10.5% in the third quarter of 2019.
Interest expense
Interest expense was $5.4 million, compared to $6.7 million in the second quarter of 2020 and $2.6 million in the third quarter of 2019.
EBITDA (non-GAAP)
EBITDA (non-GAAP) was $51.6 million, compared to $26.8 million in the second quarter of 2020 and $19.7 million in the third quarter of 2019. EBITDA margin (non-GAAP) was 41.1%, compared to 20.0% in the second quarter of 2020 and 23.5% in the third 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 $20.8 million in the third quarter of 2020, compared to $2.4 million in the second quarter of 2020 and $5.0 million in the third quarter of 2019.
Earnings per basic ADS was $0.29 in the third quarter of 2020, compared to $0.03 in the second quarter of 2020, and $0.07 in the third quarter of 2019.
Financial Condition
As of September 30, 2020, the Company had $109.8 million in cash and cash equivalents and restricted cash, compared to $115.8 million as of June 30, 2020 and $68.2 million as of September 30, 2019. As of September 30, 2020, notes receivable balance was $1.9 million, compared to $8.2 million as of June 30, 2020 and $4.3 million as of September 30, 2019. As of September 30, 2020, total borrowings were $271.0 million, of which $140.0 million were long-term borrowings, compared to total borrowings of $264.8 million, including $116.9 million long-term borrowings, as of June 30, 2020 and total borrowings of $248.8 million, including $163.5 million long-term borrowings, as of September 30, 2019.
Cash Flows
For the nine months ended September 30, 2020, net cash provided by operating activities was $71.1 million, compared to $101.6 million in the same period of 2019.
For the nine months ended September 30, 2020, net cash used in investing activities was $80.3 million, compared to $202.3 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 our Phase 3B and 4A polysilicon projects.
For the nine months ended September 30, 2020, net cash provided by financing activities was $1.1 million, compared to $76.6 million in the same period of 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 the non-operational polysilicon assets in Chongqing. Such costs mainly consist of non-cash depreciation costs, as well as utilities and maintenance costs associated with the temporarily idle polysilicon machinery and equipment, and the Company had removed this adjustment from the non-GAAP reconciling item since the fourth quarter of 2018, because as of the end of the third quarter of 2018, all of the polysilicon machinery and equipment had been either relocated to Xinjiang, disposed, or planned to be disposed of in due course. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS also 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 U.S. Eastern Time on November 23, 2020 (9:00 PM Beijing / Hong Kong time on the same day).
The dial-in details for the earnings conference call are as follows:
Participant dial in (U.S. 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
You can also listen to the conference call via Webcast through the URL:
https://services.choruscall.com/links/dq201123.html
A replay of the call will be available 1 hour after the end of the conference through November 30, 2020.
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: 10149965
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 2008, the Company is one of the world's lowest cost producers of high-purity polysilicon. Daqo's highly-efficient and technically advanced manufacturing facility currently has a nameplate annual polysilicon production capacity of 70,000 metric tons.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the fourth quarter and the full year of 2020 and quotations from management in this announcement, as well as Daqo New Energy's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company's ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company's ability to lower its production costs; changes in the political and regulatory environment; and the duration of COVID-19 outbreaks in China and many other countries and the impact of the outbreaks and the quarantines and travel restrictions instituted by relevant governments on economic and market conditions, including potentially weaker global demand for solar PV installations that could adversely affect the Company's business and financial performance. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
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 ended Nine months ended
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2020 2020 2019 2020 2019
Revenues $125,529 $133,518 $83,909 $427,878 $231,072
Cost of revenues (80,276) (110,820) (65,834) (303,373) (186,087)
Gross profit 45,253 22,698 18,075 124,505 44,985
Operating expenses
Selling, general and
administrative
expenses
(9,223) (10,120) (8,178) (28,235) (23,920)
Research and development
expenses (1,746) (1,958) (1,228) (5,358) (4,052)
Other operating (expense) /
income (954) 133 145 (1,036) 579
Total operating expenses (11,923) (11,945) (9,261) (34,629) (27,393)
Income from operations 33,330 10,753 8,814 89,876 17,592
Interest expense (5,438) (6,653) (2,551) (18,378) (6,461)
Interest income 200 368 193 719 775
Foreign exchange loss (189)
Income before income taxes 28,092 4,468 6,456 72,217 11,717
Income tax expense (6,193) (2,037) (1,561) (14,574) (3,652)
Net income from continuing
operations 21,899 2,431 4,895 57,643 8,065
Income /(loss) from
discontinued
operations, net of tax
(55) 88 (141) 1,370
Net income 21,899 2,376 4,983 57,502 9,435
Net income (loss) attributable
to non-
controlling interest
1,142 (7) 1,132
Net income attributable to Daqo
New $20,757 $2,383 $4,983 $56,370 $9,435
Energy Corp. shareholders
Net income 21,899 2,376 4,983 57,502 9,435
Other comprehensive income /
(loss):
Foreign currency translation
adjustments 25,937 1,213 (21,337) 17,331 (20,594)
Total other comprehensive income
/(loss) 25,937 1,213 (21,337) 17,331 (20,594)
Comprehensive income /(loss) 47,836 3,589 (16,354) 74,833 (11,159)
Comprehensive income /(loss) 1,163 (6)
attributable to non-controlling
interest
1,148
Comprehensive income /(loss)
attributable to Daqo New Energy
Corp.
shareholders
$46,673 $3,595 $(16,354) $73,685 $(11,159)
Earnings per ADS* (GAAP)
-continuing operations 0.29 0.03 0.07 0.80 0.12
-discontinued operations 0.00 0.00 0.00 0.00 0.02
Basic 0.29 0.03 0.07 0.80 0.14
-continuing operations 0.27 0.03 0.06 0.74 0.12
-discontinued operations 0.00 0.00 0.01 0.00 0.02
Diluted 0.27 0.03 0.07 0.74 0.14
Weighted average ADS
outstanding*
Basic 71,281,184 70,546,207 68,172,007 70,570,987 67,483,068
Diluted 76,626,371 76,270,603 75,755,443 76,398,480 69,631,876
*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 earning
per ADS and number of ADS information has been retrospectively adjusted to reflect the change for all periods presented.
Daqo New Energy Corp.
Unaudited Consolidated Balance Sheets
(US dollars in thousands)
Sep 30, 2020
Jun 30, 2020
Sep 30, 2019
ASSETS:
Current Assets:
Cash and cash equivalents $70,150 $88,215 $26,985
Restricted cash 39,640 27,551 41,192
Accounts receivable, net 42 65 129
Notes receivable 1,908 8,163 4,294
Prepaid expenses and other current
assets 12,972 13,476 24,176
Advances to suppliers 1,229 6,712 7,823
Inventories, net 53,640 26,824 21,023
Amount due from related parties 213 12 3,492
Current assets associated with
discontinued operation 667 414
Total current assets 179,794 171,685 129,528
Property, plant and equipment, net 987,295 956,675 883,084
Prepaid land use right 29,815 28,826 21,030
Deferred tax assets 1,386 1,332 790
Investment in affiliate 658 633 625
Operating lease Right-of-use
assets 137 153 211
Other non-current assets 147
Non-current asset associated with
discontinued operation 181 6,804
TOTAL ASSETS 1,199,232 1,159,485 1,042,072
Current liabilities:
Short-term borrowings, including
current portion of long-
term borrowings
131,064 147,839 85,278
Accounts payable 19,739 18,833 20,070
Notes payable 62,128 49,143 62,287
Advances from customers-short
term portion 17,544 23,500 21,218
Payables for purchases of
property, plant and equipment 76,158 97,239 81,709
Accrued expenses and other current
liabilities 16,616 18,262 12,071
Amount due to related parties 4,820 8,169 16,787
Income tax payable 7,314 4,414 3,437
Lease liabilities -short term
portion 78 74 81
Current liabilities associated
with discontinued operation 877 1,087
Total current liabilities 335,461 368,350 304,025
Long-term borrowings 139,967 116,911 163,519
Advance from customers - long term
portion 1,266 1,132 9,092
Amount due to related parties -
long term portion 10,897 16,247 15,387
Other long-term liabilities 21,157 20,067 20,876
Deferred tax liabilities 5,647 5,459 1,145
Lease liabilities - long term
portion 74
Non-current liabilities
associated with discontinued
operation
TOTAL LIABILITIES 514,395 528,166 514,118
EQUITY:
Ordinary shares 36 36 35
Treasury stock (1,749) (1,749) (1,749)
Additional paid-in capital 405,784 400,103 382,660
Accumulated gains 257,292 236,535 180,834
Accumulated other comprehensive
loss (2,622) (28,538) (33,826)
Total Daqo New Energy Corp.'s
shareholders' equity 658,741 606,387 527,954
Non-controlling interest 26,096 24,932
Total equity 684,837 631,319 527,954
TOTAL LIABILITIES & EQUITY 1,199,232 1,159,485 1,042,072
Daqo New Energy Corp.
Unaudited Consolidated Statements of Cash Flows
(US dollars in thousands)
For the nine months ended Sep
30,
2020 2019
Operating Activities:
Net income 57,502 9,435
Less: (loss) /income
from discontinued
operations, net of
tax (141) 1,370
Net income from
continuing
operations 57,643 8,065
Adjustments to
reconcile net income
to net cash provided
by operating
activities 68,248 45,814
Changes in operating
assets and
liabilities (54,722) 45,588
Net cash provided by
operating
activities-
continuing
operations 71,169 99,467
Net cash (used in) /
provided by
operation
activities-
discontinued
operations (50) 2,138
Net cash provided by
operating activities 71,119 101,605
Investing activities:
Net cash used in
investing
activities-
continuing
operations (80,147) (204,067)
Net cash (used in) /
provided by
investing
activities-
discontinued
operations (195) 1,791
Net cash used in
investing activities (80,342) (202,276)
Financing activities:
Net cash provided by
financing activities
- continuing
operations 1,127 87,445
Net cash used in
financing activities
- discontinued
operations (64) (10,843)
Net cash provided by
financing activities 1,063 76,602
Non-cash
transactions
Effect of exchange
rate changes 2,656 (2,582)
Net (decrease) /
increase in cash,
cash equivalents and
restricted cash (5,504) (26,651)
Cash, cash
equivalents and
restricted cash at
the beginning of the
period 115,294 95,120
Cash, cash
equivalents and
restricted cash at
the end of the
period 109,790 68,469
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.
Sep 30, 2020 Sep 30, 2019
Cash and cash equivalents 70,150 27,277
Restricted cash 39,640 41,192
Total cash, cash equivalents, and
restricted cash shown in the 109,790 68,469
statement of cash flows
Daqo New Energy Corp.
Reconciliation of non-GAAP financial measures to comparable US GAAP measures
(US dollars in thousands)
Three months Ended Nine months Ended
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2020 2020 2019 2020 2019
Net income 21,899 2,431 4,895 57,643 8,065
Income tax expense 6,193 2,037 1,561 14,574 3,652
Interest expense 5,438 6,653 2,551 18,378 6,461
Interest income (200) (368) (193) (719) (775)
Depreciation & Amortization 18,289 16,004 10,878 51,568 32,524
EBITDA (non-GAAP) 51,619 26,757 19,692 141,444 49,927
EBITDA margin (non-GAAP) 41.1% 20.0% 23.5% 33.1% 21.6%
Three months Ended Nine months Ended
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2020 2020 2019 2020 2019
Net income attributable to
Daqo New Energy Corp.
shareholders
20,757 2,383 4,983 56,370 9,435
Share-based compensation 4,478 4,491 4,476 13,430 13,436
Adjusted net income (non-
GAAP) attributable to Daqo
New 25,235 6,874 9,459 69,800 22,871
Energy Corp. shareholders
Adjusted earnings per basic
ADS* (non-GAAP) $0.35 $0.10 $0.14 $0.99 $0.34
Adjusted earnings per
diluted ADS* (non-GAAP) $0.33 $0.09 $0.12 $0.91 $0.33
*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 earning
per ADS and number of ADS information has been retrospectively adjusted to reflect the change for all periods presented.
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SOURCE Daqo New Energy Corp.
