Daqo anticipates more than quadrupling of H1 profit among poly rates rise

• A subsidiary of polysilicon manufacturer Daqo New Energy is anticipating net profit throughout the first half of 2022 to be greater than four times greater than the same period last year.

Xinjiang Daqo New Energy approximates that its net profit attributable to shareholders in H1 2022 will certainly remain in the range of RMB9.4-- 9.6 billion (US$ 1.4-- 1.43 billion), representing a boost of up to 344% on the RMB2.16 billion net profit it videotaped in H1 2021.

Polysilicon costs have actually expanded by around 14% considering that the beginning of May. Last week's typical polysilicon strike rate leapt 4% sequentially to RMB287/kg (US$ 42.81/ kg, inclusive of China's 13% sales tax obligation), according to data given by industry analysts PVInfoLink and Energy Trend.

Xinjiang Daqo meanwhile revealed last week it finished a private offering on the Shanghai Stock Exchange that generated gross proceeds of RMB11 billion (US$ 1.64 billion). The company previously said it would use profits to support a polysilicon growth project in China's Inner Mongolia region.

Daqo New Energy's gross profit reached US$ 813.6 million throughout Q1 2022 as its polysilicon sales quantities jumped greater than threefold on the prior quarter as well as it benefited from a fall in production costs.