Daqo New Energy’s Q1 2016 net profit surges 592% y/y

Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) on Tuesday posted an attributable net profit of USD 8.3 million (EUR 7.3m) for the first quarter of 2016 from USD 1.2 million a year back.

In quarter-on-quarter terms, the bottom line decreased from USD 9.6 million.

The firm’s quarterly production volume fell to 3,405 tonnes, as compared to the record-high 3,547 tonnes in the fourth quarter of 2015. This came as a result of the fewer working days in the three months under review and the impact of the Chinese New Year Holidays, according to the statement.

Gross margin in January-March was 29%, slightly growing from 28.5% in the previous quarter and rocketing from 20.2% a year ago.

The company saw its first-quarter revenues improve to USD 57.7 million from USD 41.9 million in the same period of 2015, as it shipped 2,905 tonnes of polysilicon and 22.1 million pieces of wafer. Daqo New Energy noted that its sales declined from USD 59.3 million in the fourth quarter of 2015, mainly due to the decreased external sales volume and slightly lower average selling prices (ASP) in its polysilicon division.

Daqo New Energy guided for external shipments of 2,850-2,950 tonnes of polysilicon and 23.5 million to 24 million pieces of wafers in the second quarter of 2016. “We continue to make progress toward our goal to further reduce our production cost and improve quality, and further enhance our profitability and competitive positioning,” CEO Gongda Yao noted.

(USD 1.0 = EUR 0.879)

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