Daqo breaks quarterly polysilicon shipment record but wafer sales slump in Q1

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Daqo said that multicrystalline wafer sales volume plummeted to only 13.3 million pieces, compared to 22.3 million pieces in the fourth quarter of 2017 and 22.4 million pieces in the first quarter of 2017. Image: Daqo

Daqo said that it produced a record high 5,657MT of polysilicon in the first quarter of 2018, as well as breaking its previous record of external sales volume, which reached 5,411MT. 

However, multicrystalline wafer sales volume plummeted to only 13.3 million pieces, compared to 22.3 million pieces in the fourth quarter of 2017 and 22.4 million pieces in the first quarter of 2017. 

PV Tech recently highlighted that the largest multicrystalline wafer producer, GCL-Poly Suzhou reported revenue in the first quarter of 2018 of around US$675.3 million, up from around US$562 million in the fourth quarter of 2017 and up from US$634 million in the prior year period.

However, GCL-Poly Suzhou has also increased nameplate wafer capacity (inc mono c-Si) in 2017, going from 18.5GW in 2016 to 30GW at the end of 2017, a 62.2% rise, indicating a major softness in multi c-Si wafer demand in the first quarter of 2018.

Financial results

Daqo reported first quarter 2018 revenue of US$103.3 million, compared to US$103.7 in the fourth quarter of 2017 and $83.8 million in the first quarter of 2017.

Revenues from polysilicon sales to external customers were US$95.6 million, compared to US$89.8 million in the fourth quarter of 2017 and $70.4 million in the first quarter of 2017. 

Daqo noted that the sequential increase in revenues from polysilicon was primarily due to higher polysilicon sales volumes which were partially offset by lower ASPs. 

Revenues from wafer sales were only US$7.6 million, compared to US$13.9 million in the fourth quarter of 2017 and US$13.4 million in the first quarter of 2017. 

Daqo reported first quarter 2018 revenue of US$103.3 million, compared to US$103.7 in the fourth quarter of 2017 and $83.8 million in the first quarter of 2017. Image: Daqo

aqo said that the sequential decrease in revenues from wafer sales was primarily due to lower sales volumes and a decrease in ASPs.

Gross profit in the first quarter of 2018 was approximately US$46.2 million, compared to US$46.9 million in the fourth quarter of 2017 and US$35.9 million in the first quarter of 2017. 

Gross margin was 44.8%, compared to 45.2% in the fourth quarter of 2017. The decrease in ASPs which were partially offset by a decrease in average polysilicon production cost, according to the company.

“I am pleased to announce another excellent quarter of operational and financial results in which we produced a record high 5,657 MT in polysilicon,” commented Mr. Longgen Zhang, CEO of Daqo New Energy. “We also broke our record for external sales volume during the quarter by shipping 5,411 MT. This strong growth in production and external sales volumes is being driven by our continuing focus on improving manufacturing efficiency and maximizing overall output. Demand for our high-quality polysilicon products remained strong and allowed us to generate $103.3 million in revenue, a gross margin of 44.8%, $31.6 million in net income attributable to Daqo New Energy shareholders, $51.7 million in EBITDA, and an EBITDA margin of 50.0%.”

Guidance

The company guided 5,600MT to 5,800MT of polysilicon production in the second quarter of 2018 with sales of approximately 5,300MT to 5,500MT.

Wafer sales volume is expected to be approximately 15.0 million to 20.0 million pieces for the second quarter of 2018. 
For the full year 2018, the company expects to produce approximately 22,000 to 23,000 MT of polysilicon, inclusive of the impact of our annual facility maintenance.

The company is also expanding polysilicon production to meet demand for high-purity monocrystalline wafer demand from customers such as LONGi Group. 

Read Next

July 29, 2021
Tracker and racking provider Arctech has delivered SkySmart II tracking system to a 575MW agriculture-sharing solar project located in Nangong City, Hebei Province, China.
July 23, 2021
China could install up to 65GW of solar this year, driven largely by a surge in demand for distributed solar installations, while average solar deployment could reach 90GW per year in the years leading up to 2025.
July 23, 2021
Polysilicon manufacturer Daqo New Energy has completed its Initial Public Offering (IPO) of its main operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s Sci-Tech innovation board.
July 22, 2021
REC Silicon said it is continuing to work towards a restart of operations at its Moses Lake polysilicon production facility in the US, with the company buoyed by recent policy initiatives unveiled by US President Joe Biden.
July 16, 2021
The July 2021 episode of the Solar Media Podcast, sponsored by Honeywell, is now available to stream, as we delve into everything you need to know about recent polysilicon trade sanctions in the US.
July 16, 2021
Finlay Colville, head of market research at PV Tech Research, explores the critical themes behind the solar industry’s transition from p-type to n-type cell production before previewing PV CellTech Online 2021.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK