Daqo disregards COVID-19 anxieties with favorable overview for 2020

• The Chinese polysilicon titan's take-home pay dropped virtually 23% year on year to $29.5 million in monetary 2019, although it uploaded a 16% year-on-year enter income to $350 million. It anticipates its polysilicon result to rise in the year in advance, regardless of the danger positioned by the coronavirus break out.

Daqo New Energy's take-home pay attributable to investors dropped from $38.1 million to $29.5 million in the year throughout of December, regardless of a solid fourth-quarter internet revenue of $20.1 million, up 76% from the last 3 months of 2018, according to its unaudited outcomes for financial 2019.

Nonetheless, the firm anticipates to create about 18,000 MT to 19,000 MT of polysilicon in the initial quarter of this year and also 73,000 to 75,000 MT in the 12 months throughout of December 2020. That would certainly stand for a substantial dive from its excellent full-year result of 41,556 MT in monetary 2019, up 80% on the year.

Longgen Zhang, CEO of Daqo New Energy, defined 2019 as a "difficult year for China's residential solar PV market." He kept in mind that around 81% of the firm's manufacturing throughout the 4th quarter included premium mono-grade polysilicon.

New manufacturing facility

The firm's earnings from proceeding procedures got to $350 million in 2019, from simply $301.6 million a year previously. It largely associated the boost to greater polysilicon sales, regardless of reduced ordinary market price (ASPs). Polysilicon ASPs stood at approximately $8.77/ kg in the 4th quarter, from $8.99/ kg in the July-September duration.

Zhang included that the business's brand-new Phase 4A manufacturing facility is currently going for complete manufacturing capability, adhering to the conclusion of a 35,000 MT development project at the end of the 3rd quarter.

" We rapidly ramped its manufacturing up throughout the 4th quarter and also struck complete capability in December," Zhang clarified, declaring that the project was finished months ahead of timetable.

" With the Phase 4A totally increase, our power usage, basic material usage performance, and also various other system expenses are all trending favorably."

Daqo had a reasonably solid 4th quarter, with take-home pay leaping to $20.1 million, from simply $11.4 million a year previously. Nonetheless, gliding ASPs counter an enter sales to 13,291 MT in the 3 months throughout of December, from simply 9,238 MT in the coming before quarter. Polysilicon manufacturing leapt from 9,437 MT in the July-September duration to 16,204 MT in the 4th quarter.

Situation feedback

The business taped a bottom line from ceased procedures in the 4th quarter of $0.3 million, adhering to the third-quarter closure of its solar wafer manufacturing procedures. Currently, it is supporting for the effect of the coronavirus break out as it takes a look at the year in advance.

" We instantly established a dilemma feedback task force led by our elderly administration group as well as started presenting efforts to make sure service connection consisting of a comprehensive analysis of our supply chain and also logistics, the instant purchase of essential basic materials, as well as prepares to enable staff members go back to function, which led to continuous manufacturing and also complete use throughout this difficult duration," claimed Zhang.

Daqo prepares to run its manufacturing facilities at complete capability in the months ahead, with an outcome target of 18,000 MT to 19,000 MT of polysilicon in the very first quarter of this year. It anticipates mono-grade polysilicon items to represent approximately 90% of its sales in the 3 months throughout of March, Zhang included.

" Toward completion of 2019 we saw the marketplace share for multi-grade polysilicon change meaningfully in the direction of mono-grade polysilicon," he ended, keeping in mind that need for multi-grade polysilicon is dropping. "While we are preferably placed to take advantage of this change in the direction of mono-grade polysilicon, this will negatively affect several of our rivals that create mainly multi-grade polysilicon."