Daqo Xinjiang subsidiary forecasting five-fold profit jump as development plans development

Jan 25, 2022 12:53 PM ET
  • Polysilicon producer Daqo New Energy is expecting a five-fold rise in internet profit from its Xinjiang subsidiary as it remains to progress growth plans.
Daqo Xinjiang subsidiary forecasting five-fold profit jump as development plans development
Image: Daqo New Energy

In a declaration issued today, Daqo exposed that its Xinjiang Daqo New Energy subsidiary was forecasting for net profit to be in the range of RMB5.6-- 5.8 billion (US$ 885-- 917 million) for 2021, a rise of in between 437-- 456%.

Xinjiang Daqo reported profit of RMB1.04 billion (US$ 164 million) in 2020.

Using comparison, overall group gross profits at Daqo in Q3 2021 got to a new record of US$ 435.2 million.

Polysilicon manufacturer profits leapt last year on the back of demand far overtaking supply, leading to rates soaring from RMB97/kg-- consisting of China's sales tax-- in late February 2021 to highs of RMB269/kg experienced throughout November 2021.

Today will certainly additionally see the trade of shares in Xinjiang Daqo as part of a private offering which is intended to elevate around RMB11 billion (US$ 1.74 billion) in earnings to fund a 100,000 MT development project in Baotou, Inner Mongolia.

Previously this month Daqo revealed a capital shot of US$ 1.6 billion for its Xinjiang Daqo subsidiary to advance the project, mentioning at the time the capital would stem from existing group funds and also lines of financing.

The personal offering was then revealed to the Shanghai Stock Exchange on 14 January prior to the offering happening today.

Construction of the 100,000 MT facility is because of start in March this year and complete in Q3 2023.

Daqo is in the middle of a significant capacity development plan with brand-new and increased facilities at numerous phases of building and construction. It started pilot production at its Stage 4B project last month in anticipation of attaining full-scale manufacturing of 105,000 MT later on this quarter, and also expects complete manufacturing capacity to exceed 270,000 MT by the end of 2024.

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