Polysilicon firm Daqo New Energy posted solid Q2 results and confirmed its capacity expansion plans are progressing on schedule.
The company confirmed its profit margin had climbed compared to the previous quarter while revenue hit US$43.7 million compared to US$27.8 million in the same period last year.
Production cost per kg fell from US$14.49 in the first quarter to US$14.13 in the second.
“In May, we successfully raised US$54.6 million through a follow-on offering in the public market. We will use the net proceeds mainly for the expansion and technology improvement at our Xinjiang polysilicon facility,” said Dr. Gongda Yao, CEO, Daqo New Energy.
“The construction work started in this April and is on track with the schedule. We expect to finish the construction and installation by the end of November and start pilot production right away. We expect to fully ramp up the capacity to 12,150MT in the second quarter of 2015 and therefore reduce our cash cost (excluding depreciation) and production cost (including depreciation) to approximately US$8.70/kg and US$12.00/kg, respectively,” said Yao.
“We will upgrade our technology from hydrogenation to hydrochlorination process, which will save the energy and further reduce the cost,” said Yao during a conference call with analysts.
China recently announced that it would close a loophole that allowed polysilicon imports to circumvent duties if the end product, the cells or modules, were then to be exported back out of China.