Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Daqo New Energy Fourth Quarter and Fiscal Year 2022 Results Conference Call. All participants will be in a listen-only-mode. [Operator Instructions] Please also note today’s event is being recorded.

And at this time, I would like to turn the conference call over to Kevin He, Investor Relations. Please go ahead.

Kevin He

everyone. Hello, the Daqo He, Energy. Relations Investor Kevin New of I’m today. our Thank joining call you for conference The its can just fiscal our Company issued at year quarter the website of and fourth XXXX, which www.dqsolar.com. be on financial found results for also conference your presentation have a PPT To facilitate we prepared today's call, for reference.

presentation find our can also at You a PPT website.

the Chief Officer; Mr. and Chief Executive Financial and conference Longgen, we Mr. have call, attending Officer; Today, Ming our myself. Yang, our

remarks, before statements today, call, like Harbor I that Litigation will Safe and provisions the formal Act -- industry begin, So statements XXXX. certain excluding today's uncertainties. are made inherent and growth Securities operational would Reform of so remind on we of involve and that I future you financial risks the to performance under Private These are forward-looking the read statements expected U.S.

could in Commission. to to in these number actual only the included is any A and Exchange or or view Securities filed furnished today and reflect statements. to subject statements with materially contained may and Further as forward-looking change. cause factors and information regarding preliminary documents we current the from of risks those be our have These of results reports other differ

projections ability risks is achieve Our to and these to subject uncertainties.

of U.S. is will conference dollars these in U.S. the Please amounts All translations applicable under that required today, and currency the information law. offer to convenience the for monetary reference We as occasionally functional is information, in Also today's provided audience. the solely dollar RMB. terms. as we keep except mind Chinese our into we call, update in of call undertake such no during duty

the now Zhang. I our will Without to Mr. call further ado, turn CEO,

Longgen Zhang

evening, Thank everyone. you, Kevin. Good

a XXXX. a second such We are a team financial year record to to -- result and would pleased for performance. like thank achieving the entire strong operational for to our We report very report

to XXX,XXX guidance and XX.X% in metric metric XXX,XXX higher XXXX, a exceeding XX,XXX polysilicon than XXXX. of annual ton production volume in XX,XXX the metric Our our ton produced ton

was XX,XXX robust in volume for approximately globally, world. per to kg the most in metric ASPs than sales ton profitable in $XX.XX the products solar kg to polysilicon manufacturers from in XXXX. XXXX year-over-year PV per XX.X% by XXXX, the increased higher demand $XX.XX XXXX.As one in XX% XXX,XXX ton fastest-growing Our metric and Thanks polysilicon of

a revenue of XXXX results $X.XX in achieved We XXXX. billion billion compared XXX% US$X.XX net and compared XX.X% margin in in million an attributable XXXX, to Gross shareholders strong of with increase to XXXX. our US$XXX XXXX, was to an in XXXX, to billion XX.X% income improved US$X.XX financial of in XXX.X% from increase in

We $X.XX in cash combined ended operating restricted Xmonths. generated and in strong approximately bank year and balance billion very billion year, flow a equivalents, for with sheet the cash with with cash cash, notes $X.XX the within maturity

year polysilicon. the XXXX, was approximately our XX% of of volume For production mono-grade

We for be continue mono cell suppliers ultra-high one foundation N-type of type polysilicon, the technology. of solar world’s leading next-generation the purity N to

caused market of of XXXX, seasonal the the temporary Towards slowdown PV adjustments solar chain, inventory year-end to similar the end a across in value XXXX.

the As downstream rates. and widespread utilization This reduced led the production wafer, manufacturers, inventories declines significantly price and especially a cell result, module lowered across to chain. sectors, value

to strong healthy in range polysilicon RMBXXX approximately solar ASPs. prices of reflect In RMBX.X are to and kg rates normal utilization the stimulated modules meaningful February significantly recovery ramped leading reducing watt. downstream the for to demand effectively quickly to XXXX, lower production inventory module and demand, a channel market RMBX.X and of per polysilicon Current prices of levels, RMBXXX back per up very

The by at a as conditions favorable made polysilicon gigawatt approximately faster gigawatt the growing driven conjunction most XXX with in XXX approximately as increase had XX% were forecasted year. installations PV XXXX, policies than economic change annual fastest supply, growing supportive climate grid-parity, beginning global industry’s from solar one in Global XXXX the well in years. in XXXX, increase of the of

actually increased price XXXX. QX Despite to watt expected PV China’s XXXX that of per to watt approximately supply, QX Chinese module that solar of the per conditions specifically would end-market limited to an with RMBX polysilicon. from the for demand XX% the installations global a market RMBX.X gigawatt, of compared also Meanwhile, in higher PV pricing saw installations, market suggest module PV These year, slowdown lead in robust in growth XXXX. XX market many increase was solar by

energy need beyond these early urgent independence including positive drive far for be transformation market greater stage by the and from developments. momentum opened benefit the potential to polysilicon huge which demand The grid-parity, renewable strong is believe has expectations. is energies, driven in conditions a its PV, to for change, solar PV. sector will as solar Key led positive for global to economic address continue energy We including strongly likely to climate trends, well still as high-purity have

deliver metric Daqo trends expansion construction from polysilicon the continued ton New and well-positioned benefit of capacity The project Inner in our smoothly. Energy is to Phase growth. progressing above Mongolia is XA XXX,XXX

to for more March ton produce be and We end by will metric of the XXXX, to XX% to than in Mongolia we Inner additional expect Therefore, in approximately XXXX. polysilicon polysilicon expected of to to XXXX. in of to April XXX,XXX full XXX,XXX metric expect Furthermore, and end our pilot XXXX capacity complete by construction and construction start this in production June completed up Phase XX% an XXX,XXX is in year. start ramp XB the project

the at a energy will and the a with role global cost-effective energies much by play thought powering world renewable transforming continue sustainable, than to in critical infrastructure PV Solar faster pace possible.

our industry, our focus of player PV the sheet strong in of As We peers in competitiveness, XXXX. outperformed global of the will long-term core profitability, solid in allow road-map, benefit growth and growth solar product on to a leading market. and structure, balance believe from terms unit most polysilicon cost we quality our our us

polysilicon the annual expect the metric in fourth guidance, the produce in of to outlook XXXX For XXXX, quarter approximately maintenance. tons tons XXX,XXX polysilicon future of year impact tons the metric of the metric first inclusive XX,XXX to company’s and metric XXX,XXX of of to we tons approximately facility of and XX,XXX

I will Now our turn the to Mr. Yang, please. call CFO,

Ming Yang

you, everyone. our today. you call Thank and Thank Longgen, hello, conference for earnings joining

to year. for in by Now average an million compared million quarter $X.XX performance I were will $XXX sales in Longgen selling the to decrease mitigated and third the increase as financial $XXX.X of discuss fourth quarter to billion quarter the in of third for the quarter XXXX the mentioned volume company's price. and compared decreasing XXXX. in of XXXX the revenue primarily The due was a Revenues

third to compared the quarter million, quarter slight $XXX.X XXXX costs. quarter XXXX profit to the to of the and primarily higher lower Gross in was Gross $XXX.X fourth of profit million margin $XXX.X sales million volume XX.X% in was for quarter due The XXXX. as in third to well of the and quarter the in quarter XX.X% the as of compared XX.X% third fourth XXXX. gross was decrease compared in production

XXXX quarter during XXXX. $XXX share plan. quarter and administrative of compensation of expenses cost million and the the quarter 'XX third Sales, the SG&A quarter to $XX.X incentive to And third $XXX.X this in the in million, compared $XX.X in fourth quarter included million in expense compares of general $XX noncash of third share-based fourth the was to the noncash compensation million costs. company's of costs related share-based million

vary to reduce of period to activities quarter million XXXX and Research production on million, research period technology in take costs. and in the that R&D from R&D million $X.X Currently, development third R&D place quarter as entire compared expense well expenses for $X.X the research our spent the fourth quarter primarily XXXX. to most was during $X.X the reflect quarter. of as are of our

third million, Income quarter million to in XXXX of and fourth fourth from compared was third XX.X% to Operating million the compared XXXX. quarter $XXX the XX.X% of and margin in XXXX. was in the operations of quarter the XXXX quarter $XXX of $XXX XX% in

was [ph] quarter New XXXX. income to million, the quarter in Energy result Corp a fourth to shareholders million in of As net of million the third a XXXX, of compared above, X.XX Daqo the $XXX.X attributable $XXX.X

XXXX. $X.XX net quarter compensation costs share-based the XXXX, quarter the quarter Earnings fourth XXXX. million third a in the excluding fourth of was and $XXX.X in of income compared in attributable quarter third Adjusted $XXX.X to $XXX.X per to noncash to shareholder, in $X.XX ADS was Daqo of of $X.XX basic million compared the Energy New million XXXX

million, $X.XX in basic quarter per to compared of XXXX. was quarter and the the was XX% of ADS earnings EBITDA quarter of $XXX to the and million compared for in of quarter third XXXX. fourth $X.XX margin and the quarter the $XXX.X was quarter in compared to in XXXX $X.XX the the XXXX. XX.X% quarter Adjusted of million EBITDA $XXX.X of XX% third XXXX fourth fourth in XXXX in third

Now for of year polysilicon Gross higher [indiscernible]. $X.X gross in XXXX to compared our selling increase the the results. to year XX% in saw XXXX. compared and to year in profit Gross were XX.X% higher a billion, The significantly sales prices. was a XXXX. due XXXX $X.X to volume was billion billion selling for profit increase $X.X higher due in billion to was review higher average $X.XX Revenue was The full prices compared XXXX. for margin

to R&D SG&A compared to for $XX which million $XX.X year costs in SG&A to compared XXXX, expenses was The in was due $XXX to expenses was million to for expenses were $X.X of XXXX compared related primarily compared in noncash incentive XXXX. the XXXX. to million million for shared million XXXX increase our $XXX.X million compensation share-based our plan, $X.X XXXX.

in compared increasing compared for interest expense in year due million, income XXXX. income in operations [indiscernible] from balance. XXXX. was cash was million to was the to net our XX.X% interest billion $XX.X The for year compared -- billion, in XXXX. to $X.XX Operating was $XX.X higher margin to Interest the $X.XX XX% interest Income

Daqo million, ADS the to for was basic the year compared The shareholders compared to to Income $XXX in XXXX. compared net to tax XXXX. Earnings expense for year million in income $XX.XX $X.XX attributable for was for was Energy XXXX. million $XXX billion, the year $XXX.X New $XX.XX in

XXXX. $X.XX billion Daqo Adjusted $X.XX ADS attributable in to XX.X% was were net per was New compared margin in billion, XX.X% for for Adjusted earnings in XXXX. $XX.XX EBITDA to the income to XXXX. basic year per $XXX in million year shareholders compared was compared the $X.XX billion, compared XXXX. Energy share EBITDA to $XX.XX to

on financial Company's now condition. the And

of company equivalent December has XX, As as of XXXX XXXX, December XX, the compared as XX, September cash And to December compared redeemed of balance, XXXX. of and billion immediately in cash X of of December $XXX as $X.X bank was was months cash, as cash XXXX. be $XXX XXXX, and for million $X.XX XX, as bank billion XX, restricted can a September billion $X.XX which note XX.X, timeframe. about receivable and $X.XX billion, maturing The million XX, typically notes to

the And Company's to cash now flow. on

the to And net higher XX of activities billion, $XXX months XX, revenue compared XXXX. provided and XXXX, primarily $XXX XXXX. December cash in was million higher investing The due cash was to by compared ended gross was million net XXXX, period increase For of XX, $X.XX XX billion, in December used margin. the months period same to for operating the $X ended activity same the

activity cash same activities capital polysilicon Net to the And the provided ended Mongolia. in to period XX project related $X.XX months the company's in financing December ton metric Inner cash in net for in XXXX. on million investing City, XXXX $XXX by expenditures primarily used billion, Baotou compared the of XX, was XXX,XXX was XXXX, total

China's net open our of questions call and market. from prepared And billion concludes from [ph] Daqo’s we provided our by A remarks the proceeds finance that private Xinjiang for in audience. activities share XXXX to The related net primarily in will $X.X the cash offering now was

Operator

Please Shen MKM. [Operator first ahead your question. go with from today Instructions] Philip question Our comes from ROTH

Philip Shen

Thanks everyone. to start pricing. for my on Hi, latest Wanted with taking questions. your drive off

Thanks. polysilicon [technical I for How think of by So modular prices rest about talked quarter you do prices polysilicon stabilizing, expect the specifically, difficulty]. you the trend prices Longgen, year? rise of

Longgen Zhang

Philip. you, Thank

waiver, every we since fees Thanksgiving the producer all capacity. XXXX think I Utilization Chinese year year, every Year, think because their December, think, the downstream I and year, last so New of the New Year, since I call. a that's the year utility is plus rates holiday, reduce is

I happened. year, Year. to close last things So [Indiscernible] Chinese because New very Year New think the same

kg clean per zero, So is we and in I down something year inventory. December, silicon. sell X [indiscernible] basically, the think to December, XX% player, the didn’t the all last player, almost silicon, utilization because reason The expected think even any I it's to,

is Year I New think coming, then basically, early So Chinese February.

So January, anything. selling we also didn't

inventory whenever So last -- think, we the year, have February, of we're end I X,XXX starting, tons. -- its around we at

we've guidance. believe I think So given we

the almost per now, [indiscernible] think now as come come lower like RMBXXX back from I normal kg. -- think RMBX.X to December, right year, as price, lower last back per RMBXXX Right to I it kg.

So the we as sold February, price is I think tons more in higher. XX,XXX than

So we will selling. continue

I second it's much believe because QX, year quarter should selling The above the reason think we So coming. RMBXXX. too price is in not I new think this be player of the

not it's output So out. much too to output, new come

So we'll tolerate we digest even continue come to normal. think or to

year, RMBXXX. I the think about selling higher before be forecast, my RMBXXX, June, this end price So of mid to before of even should

X the as capacity QX, the the [indiscernible], is market only I think For go Mongolia our from Phase demand continued new up. come

XXX. definitely, the can we It's crystal like think, think silicon ball. I So clear. price QX, not is we between XXX to I believe picture the keep

down the XXX. to even XXX So silicon maybe go to price,

overall, thinking of still Daqo. very for year, we're profitable So this

model down, OUR watt. And to do we overseas [indiscernible] RMBX can even on will depend not is Second today Canada, we costs per think that we performance because sell at price module region. different module, or see RMBX high the in continue go like

they original overseas the [indiscernible] think XX% fixed price. almost I

price it's if If module matter. is will very polysilicon And So let's module XXX. doesn't yes, -- profitable. per a price support say year. this down QX the the watt, in maybe But can you above $X.XX go price

year, module silicon, very, still yes. cell thing I the not next module. a -- allocation only intensive segment margin the And investment, silicon I supply only is we then silicon, wafer is capital of still think the So challenge, the believe constructing gross period, think maybe and think between demand, I all and it's the also sales long-term is maybe same. But wafer but the

lowest the module and the back. market will to stimulate whole maybe So, come see back come price

sort [indiscernible]. it's think of I So

will this can what year to continue I money. So say we polysilicon make very is [indiscernible] is profitable. And

Philip Shen

that all really helpful. Great. Thanks for color, Longgen. It's

you mentioned XX,XXX January. or poly sold didn't you December sell You February. you in in any said And tons

are excess sold that month already any Or you it least you did at XX,XXX do XX,XXX, of also incrementally and still inventory producing you the all February? you're of sold leftover? have If saying have another you Thanks. -- that in

Longgen Zhang

Basically, QX, I given we've guidance. think for the

the I think we new QX. think or production I sale -- were for the production,

what [indiscernible] we have renminbi stable yes, of the the a XX,XXX, [indiscernible]. we yes high inventory do Still QX, still do we end So price, very that’s around But, like maybe price, around okay. were [indiscernible] about around $XXX.

Philip Shen

Okay.

Longgen Zhang

than we saw more XX,XXX, saying than In February, more okay, I'm not XX,XXX, XX,XXX.

for we selling than So [indiscernible]. more March were

Philip Shen

bookings, good. Very call your booked last to you. the Thank for XXXX. XX% [Indiscernible] on your I think

more I 'XX talk I Thanks. if and XX. what can't even can You that. perhaps final you more much for one through then really move And wondering was your have contracted for than follow-up.

Longgen Zhang

Give me the last [indiscernible].

I planning tons is [indiscernible] is to think, this think XXX,XXX I right. for our year, given tons, the guidance

than XX%. XX% now more -- I almost right covered think cover for contracts, we long-term almost

think with client So sign working to we I think the continue long-term contracts. -- I

think than well XX%. more for majority, 'XX, So I

if right than we any capacity 'XX, [indiscernible] have is now any For didn't expansion. more

covered I least next year think at XX%. I think we've

But will I than a think more rollover. cover we the the contract long-term year XXXX XX%. is

Philip Shen

Great.

then And was bit was on cost structure. the final question had a Okay. I little your QX higher.

[indiscernible] cost your [indiscernible]. I curious Thanks. structure expect Just to

Ming Yang

Okay. is Ming. Hello, Philip this

raw in market well QX to as structure rates. cost in in increase the increase QX to silicon increase metal, material primarily due was for costs the particularly electricity for compared So costs, as

as all think, China as areas Xinjiang like in rates investor [indiscernible] well. broadly aware see China, as actually as including know electricity Mongolia I and [indiscernible] you So are well in did and increase across that

cost the QX. structure And for so fully reflected, all has been say costs the increase so,

So, overall be first in our do cost the the for we of cost to costs. expect half of structure XXXX trends, QX should terms similar our

our after Mongolia cost down. up our expect trend Inner ramp While we facility, to we

than first X% mean cost. I cost. the for for plus same silicon based internal above our on think we should half lower for our [indiscernible] estimate, our To QX think, be do XXXX metal in example, latest example, cost

Philip Shen

Great.

will Thanks pass guys. Okay. very much I on. it

Ming Yang

you. Thank Great.

Operator

Please go question. comes your The from next Markets. with ahead Capital Daiwa from question [indiscernible]

Unidentified Analyst

management. Thanks

on you and cost. your XXXX. deeply to been [indiscernible] How First target also will of all, that you also production power My encouraging do is my expect cost some question polysilicon This your results congrats is We that metal noticed [indiscernible]. polysilicon do for driven shortage And Thank of it and expect question. first we for price? be price you. hike? on has there appreciate XXXX the first solid

Ming Yang

Okay.

year. interestingly, in QX cost declined of actually, metal year this last recently And And silicon in [indiscernible]. metal we trends. a of higher currently. rising seen due primarily to That's higher substantially within really QX is of So price bit with on we're what the issue cost year the costs of silicon energy metal China. silicon due trend, increase little the haven't last January was significant than it to seeing now but any

we think to costs. should So as costs a our be stable relatively QX result our QX do compared

Unidentified Analyst

clear. Thank on color you. you of can That’s second Thank a industry is polysilicon? so on share level you little much. question bit My inventory the

Longgen Zhang

Industry for level inventory polysilicon?

Unidentified Analyst

Yes.

Longgen Zhang

the material to but the is know, wafer the vertically our reason than ton. end for inventory as -- outside do as think because The continue processing, [indiscernible] XX,XXX the to think that also, of last less is sales. around then you X,XXX the China I year, integrated. back output every and ton. just produce the around And And think continue [indiscernible] take I month, is everyone, I [indiscernible] inventory production

[indiscernible] think market I come gradually inventory think So [indiscernible] back I think [indiscernible]. because the I the and normal, to Tongwei

less be than So I me, how XX,XXX it the inventory ton. much of ask by QX, end if should think you there? is

Unidentified Analyst

We expect do technology over the [indiscernible] comparison granular first SDR the my use [indiscernible] third on silicon Thank My is in Thank this quarter competitiveness year. technological you. noticed first you [indiscernible]. [indiscernible] of of How development. question that [Indiscernible]. with you. --

Ming Yang

Okay, hello.

your for CMOS right? I our granular Believe traditional is, example, versus process, So question SDR CMOS, process silicon

Unidentified Analyst

Yes.

Ming Yang

Okay.

from okay. take it perspective, I'll two So

So, graphite I hydrogen stacks for think The SDR both also perspective, process, of much heating. contamination okay. uses because one and is because it really higher from of has quality of

So, a higher as to compared well of surface the higher lot contamination. of metal surface interesting carbon high the because area much contamination as area

around So, high process, the especially CMOS XXXx quality to compared the process a higher, of type compare purity okay. in if like SDR of CMOS, typical purity supplies is [ph] advanced you our

purities our billion, of lot a right. parts So now level, per per [indiscernible] the parts are on

think you will mix at in look perspective, used because happening a market our think. primary So from if to I a what that's silicon customers as company that purity as our of what's I their only the use generally and SDR -- is product use

you're So, grows, I I the you're more even XX terms [indiscernible] think, RMBXX SDR electricity, kilogram of talking then hour But in of to market RMBX is we're in does seeing market what relatively about about cost to think, saving a price it cost of generally or kilowatt maybe discount as more market. between think in addressable per XX have structure, cost ideally, And offers I talking discounts. limited if RMBXX to the or RMBX reduction. that

So reflected that's I fully of that kind think environment. in

Unidentified Analyst

do price right last Thanks. I polysilicon to now, like and in N type terms? the [indiscernible]? terms And you Thank absolute us with the type you queue. Can My P jump premium polysilicon over question, percentage expect where or share either you. back of will

Longgen Zhang

the The difference. impact not [Indiscernible] on is type, the last selling is now now think price right reason year around P a the I Right XXX. renminbi because is too think higher. much the price, like XXX, $XX. I is

of continue kg become normal think difference demand then per high But the the maybe So the to silicon back RMBX larger. price high I higher. N type, and for quality, I purity think the as impact

and type let's So XXX, than N will kg price say or P $X when difference mean, to go I silicon be more maybe That $X there. RMBXX is per down, think difference.

Unidentified Analyst

so you much. [Indiscernible]. Thank

Ming Yang

Okay. Thank you.

Operator

The ahead from Please Alan Lau your next from question question. Jefferies. with go comes

Alan Lau

also a my and question. lot thanks [indiscernible] taking the for to Congratulations

It to Is mentioned first to X Mongolia I know is So [indiscernible]. to right, the supposed And question supply is up. it my also in addition. April, progress correct? completed you ramp your of that months about be have like would Inner [indiscernible] [indiscernible]

know on with us XQ. players there have we'd of So scheduled may peers be are completed like [indiscernible] to lot share color if new their you in a those because to more on to

Longgen Zhang

on I Phase think think I Mongolia, I -- X we call think we XA.

think April [indiscernible] year. We can this think [indiscernible] in I of May this are believe planning We we I year.

adding for this these capacity to total guidance. our think year, were So I more

guidance given is we've So XXX,XXX to XXX,XXX.

I think total that year, think I adding we it's ton So calculated, maybe already guidance. our to this around XX,XXX

we work. think this are I that we starting announced For And we're design. think for the field are I starting, month, we X, also Phase starting I think, already

year maybe try end we planning or early starting next this of early, production. So year are to to

So together, next think ton that N I think okay. that will type, is Mongolia help in total capacity. us XXX,XXX I for year Then

the type a maybe little produce maybe will For to XX% more, X% P more.

next or -- put maybe XXX,XXX I this besides tons capacity, metal in the year, tons Silicon of are XXX,XXX the or think We the because metric So that were year, XA production. the pool, year tons I in believe I think of Mongolia pool. Meanwhile, [indiscernible] for supplier think by I September think, of into semiconductor think starting [indiscernible] we metric end this metal. production semiconductor silicon also the [indiscernible] year. maybe waiting are in we think this I polysilicon, we XXX,XXX X,XXX I

our this planning So is for think, Mongolia. I total

Alan Lau

Thank you.

are your have to or just they on would supposed So players completed [indiscernible] of like updates some in other like XQ. XQ [indiscernible] because peers, share their and peers the

think So may do add supply or and will to …? cause poly drop prices the poly that you to

Longgen Zhang

those will peers, comment on especially not right. [indiscernible], We

continue we on there, time I is timing et [indiscernible] will think product So delivery challenge -- think newcomer as as going, schedule believe, we're and some I both, not I any comments. think doing cetera. But you the see, the quality,

not peers. going comment to So, on we're

Alan Lau

Thanks. you. Thank

billion also the announced like [indiscernible] of the has level. the ratio, because company company we'd on [indiscernible] So dividend check has and return $XXX posted the also buyback to excellent a

required of the level for have dividend ratio out to cash the the what buyback? in U.S implies of amount ADR it order carry to if wonder So

Ming Yang

month, think own also we we I -- announce Basically, next at the declare. we basically is [indiscernible] we figure. company, were I you company already a I we'll million. XX%. time, And cannot dividends meeting, I the that detailed we buyback think But US$XXX Asia have -- as the buyback But shareholders all announced, and give -- think U.S

So believe [indiscernible] you were XX% can dividend. our [multiple as speakers]. I distributed profit calculation. net between [indiscernible] We But think XX% to

Alan Lau

Thank my you on last the PCAOB you. And will question investigation, company? and the do be this how [indiscernible] here a positive to catalyst

Longgen Zhang

bigger think not PwC PCAOB of the the basically, right I two think Deloitte is starting, now. is four and course, firms, [indiscernible] report think I the verified. already I here they're website, I in on think But already

Chinese -- government the we open so as a challenge also very is think think don't [indiscernible] far. any public very I company. and I government

can I [indiscernible]. the [indiscernible] think are they hopefully think we regular, PCAOB may, regularly I

So, we China believe I think the bigger [indiscernible] four firms be in okay. will

Alan Lau

you. a on. Thank taking it will questions. Thanks for I lot pass my Understood.

Ming Yang

you. Thank

Operator

Suisse. question next with ahead question. Credit Zhou Please comes Gary go from from The your

Gary Zhou

question. my Hello, management. taking Thanks for

quick So just -- a on the two program. share buyback follow-up on the

we Asia, from I secondly to the as firstly, in a Asia, biotech. do ask want expect terms when receive for So your subsidiary? so And timing, dividends of Asia, such Asia, to from

our current market on we receive terms of probably after before possible because going some the that bigger So cap we our almost I and in XX% be calculation, And [indiscernible] will [indiscernible]. that's dividends consider the a simple receiving small even is lastly [indiscernible] did do to it probably biotech [indiscernible]. so to

that how [indiscernible] this relatively to imply does wondering, [indiscernible] just So aggressive?

Longgen Zhang

Ming me let Basically first question, [indiscernible] Gary, second right, we cannot correct. then marketing, the answer answer the market the question, complain always in anything okay.

So right now, [indiscernible].

I We know our equity below also didn't is this we [indiscernible] value. care think

that [indiscernible]. The reached then money think the finished Bank, subsidiaries in Merchant million, just think we China deposited basically it's around I US$XXX loan million. US$XXX we is to think [indiscernible] So [indiscernible] I could I got

like open the open, the you will for is yes, [indiscernible] So, million for That's window. the I dividends next Then million. declare million we US$XXX left, take US$XXX $XXX month. million. mean, around will US$XXX we and buybacks. Then buyback next May be think amount already There that's June, have you window the this window in

we're We're our basically, were off. ready can to to So tell that. that there I do going the second buyback two execution you answer Ming, pull you window, question. stock

Ming Yang

Yes.

So it's or both management mentioned, undervalued, to it's Longgen future whether our earnings. is right, the value price company's equity at or the in our U.S and potential huge has level so share I believe trading Board think team cash our like current discount, extremely

the well. type mainstream year over one be to poly we per are the and think lowest you're as for of right periods pricing hand, -- around current forecast to generation, cash balance cash that results significant cost year, on products flow further likely and for [indiscernible] Today to the poly likely in share world N N can I while and future are announced you primary we for our of the right, given the continue next of think XXXX, of the going supplier this become we producer because our especially in cash generate will expectations kilogram. or effectively or market, with some the so, the type become see quality I US$XX we for highest

So of it's terms for our good very buyback now do share opportunity company the really believe we active a to in program. be

-- comment to while our [indiscernible] the have. like because So, look -- I market terms think low compared cash market high in terms the generation it's fairly we does also cap it's think and it that is cap percentage, I capital a flow your extremely in of will

[indiscernible]. the that's So,

Gary Zhou

very on expansions. future capacity a just quick a question secondly, Thanks the And lot.

consider of a if if trade [indiscernible] see it a kind So, we [indiscernible] kind when possibility of restrictions. we kind go expand in of we to China, a so the other outside countries more

Longgen Zhang

research the I always is we cetera. think think especially than global regional Yes, more all et think [indiscernible] [indiscernible] I the overseas capacity situation [indiscernible] the market, and critical market I

reason the the go so considering [indiscernible] local we compare and will talent, resources to So, to the the people, have yes, we we overseas, and on.

So, definitely [indiscernible] [indiscernible]. we study and do the

Gary Zhou

thank Okay, That’s it pass I my will you. on. all Thank questions. you.

Operator

your from from question comes next ahead with Hon go JPMorgan. Our Please question. Alan

Alan Hon

one and XB? this what expect already have question with on much XA you is Hi. for and the Congratulations I spend Can on [indiscernible] your great to commitment CapEx year? like How Phase just share how you Phase result. is us CapEx. spent

Ming Yang

Okay.

have R&D I first the kind to and I'll in numbers So U.S of dollar. translate

So And is to or total CapEx XB then CapEx for for about XA, RMBX.X RMBX billion be around CapEx total expected billion. is so.

or is XA. So, US$X.X US$X.X and billion, really around of year XXXX, of the CapEx. which billion expecting billion then Phase of [indiscernible] XA Most in is is it the And year, of But Mongolia, then around for to related for was the in the some also for of is of spent XXXX, our And it remaining XB I a XA CapEx Inner for [indiscernible]. to our year, full we roughly guess -- in billion is full approximately [indiscernible] billion Mongolia actually for US$XXX US$X.X $X.X the Inner payment for Mongolia. around million million terms US$XXX full for CapEx think roughly I US$X we're so.

Alan Hon

Got it. Thanks very much.

Operator

to for Ladies over to today's at session. time back remarks. any Kevin I'd like question-and-answer closing floor the and we'll gentlemen, this end turn

Kevin He

and Thank to conference don't please us. have you, call. bye, you again contact everyone, this for Thank Should hesitate you to questions, bye. participating any further

Operator

do conclude conference Ladies and gentlemen, We for joining. does that call. thank today's you

disconnect now lines. You your may

Daqo New Energy (DQ) 28 Feb 232022 Q4 Earnings call transcript