Polysilicon manufacturing expenses, wafer manufacturing facility exercise rates bear down Daqo Q4 efficiency

Mar 1, 2022 12:56 PM ET
  • Daqo New Energy recorded a damage to its quarterly profits as well as margin in Q4 2021 after manufacturing costs spiralled as well as sales dropped against a slide popular.
Polysilicon manufacturing expenses, wafer manufacturing facility exercise rates bear down Daqo Q4 efficiency
Image: GTAT

Coverage its Q4 and also complete year 2021 results today, Daqo noted that it produced around 23,600 MT of polysilicon in the last quarter of the year however offered simply 11,642 MT, an autumn of 45% on the 21,183 MT the firm offered in the previous quarter.

And also while typical selling prices for polysilicon in the quarter climbed by around 23% sequentially to US$ 33.91/ kg, manufacturing expenses climbed at a far quicker rate, greater than doubling to US$ 14.11/ kg on the back of greater silicon powder prices.

Quarterly revenue fell to US$ 395.5 million, down almost one-third (32.5%) on Q3's quarterly record, while gross profit slipped to US$ 239.8 million, rep of a gross margin that fell by almost 14 portion points to 60.6%.

Daqo said it had actually seen lowered downstream demand during the reporting period, caused by usual end of year seasonality as well as downstream stock modifications caused by wafer carriers reducing exercise rates. Throughout Q4 2022 polysilicon prices spiked additionally to highs of RMB269/kg (US$ 42.6/ kg), prompting more volatility throughout the solar PV value chain.

Longgen Zhang, president at Daqo, claimed that after "substantial analysis" of supply and need dynamics, the firm thought about the influence to be "short-term in nature" and that exercise rates of wafer producers will recoup "once the solar value chain attains a brand-new balance".

By January 2022, Daqo said it had actually currently witnessed market orders grab, with the firm also able to cater for some need from its Phase 4B expansion project which produced its initial polysilicon in December 2021 and is anticipated to create 9,500 MT in the opening quarter of this year.

Regardless of the challenges encountered in the shutting quarter, Daqo still posted a more-than-quadrupling of gross profit for the year, rising to US$ 1.1 billion.

In its guidance, Daqo stated it anticipated to generate 31,000-- 32,000 MT of polysilicon in Q1 2022 and 120,000-- 125,000 MT this year.

Earlier today Daqo also validated it is efficiently sold out for this year after a spate of lasting bargains.

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