Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Daqo New Energy First Quarter 2023 Results Conference Call. All participants will be in a listen-only-mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference to Kevin He, Investor Relations for the company. Please go ahead.

Kevin He

everyone. Hello, He, of Kevin New Investor the am Daqo Relations Energy. I call for joining you today. our Thank conference Daqo just our financial which issued its can of first be XXXX, quarter found on website www.dqsolar.com. results at for the today’s your which you for can facilitate PPT which our in be reference, conference prepared also have To a we website. presentation find – can also call, Today, Mr. attending the conference call, we have our CEO, and CFO, Mr. Zhang; Longgen myself. and Yang; Ming

cause risks including like expected reports before differ other are as have uncertainties. So these number Harbor operational documents regarding reflect those of materially of forward-looking on Further forward-looking the to would statements preliminary These the maybe remind to of Private U.S. and results and filed begin today our I any and change. statements are or factors to you of Litigation we provisions performance to current only today, in today’s subject made view from A or financial Reform XXXX. statements. and included could remarks, call, future and growth the in inherent Safe contained and Act Securities furnished certain that Exchange statements formal information Commission. with These the and Securities under industry we risks the is that statements involve actual

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

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

will Now, without Mr. any Longgen. ado, our CEO, now turn the to I call further

Longgen Zhang

or everyone. morning evening Kevin. you, Good Thank good

Our the in volume of of in polysilicon the metric production resulted operation XX,XXX facilities quarter XXXX first of tons. efficient

procurement cost to primarily powder. of decreased the reduction in metallurgical-grade Renminbi a cost in X.X% by terms silicon production due Our

quarter, healthy we $XXX in generated EBITDA maintained operating million sheet. a with balance the strong and For cash flow

Our and balance improved $X.X $X.X cash and billion receivable billion. note combined cash balance reached to further our bank

In and in initial our polysilicon. XA started metric Phase production construction Mongolia project Inner tons XXX,XXX completed we polysilicon successfully April, of which the of is

tons XXXX expect production tons in an XXXX, compared full of June of XX,XXX bringing year to by tons total We of as XXX,XXX the tons nameplate to capacity XXX,XXX approximately per to be an metric total XXX,XXX year. to in up expect XX% production and to polysilicon annum. increase capacity we to of XX% ramp metric to of XX% to QX of metric QX polysilicon as Therefore, end metric XXXX, last our volume to our polysilicon increase XXXX, XX% compared XX,XXX to full approximately the

to a In project our its we is competitiveness highly Phase terms project low level in quality. addition, project overall September start company based cost superior to be polysilicon schedule, new and Mongolia expected bring latest new believe and pilot annual Inner our including digitalized X,XXX capacity and will system, the in capacity, automated structure of new by the with semiconductor-grade production the fully With its XXXX. end on metric tons completed the of product XA production production

module and income margin unit Polysilicon in Despite operational for still in per meaningful many subsidiary constrained robust PV very short-term prices major Xinjiang March solar Daqo, strong improvement process. production approximately increased in demand reflect gross to and net believe was used ASP a achieved price In supplies ASPs quarter, of outstanding value we XX.X% polysilicon wafers per competitors across our due of and silicon-ingot gradually recovery the In chain. end-market the our decline the in due in industry. declined demand is those limited quality the supply by caused and April, than in and of high-purity the polysilicon to structure. and quartz of causing solar for weak slowdown seasonal our which demand RMBXXX demand significantly the kg, sold January stimulated cost lower higher we after-tax of February,

enlarge clear Recently, high started lower demand the we is increasing. polysilicon N-type have high seen quality a for ASP trend gap has quality between that quality products and the to and

based quality further that this for the continued will lower that to by increases will enable grow cost will to demand. the PV capacity expansions and from polysilicon the in N-type on downstream ourselves overall trend competitors to demand next-generation technology. coming polysilicon high expect us lead We solar differentiate for manufacturers believe continue in that our ready our and We quarters

second the polysilicon. as In increase tons XXXX, of end will of our quarter output Phase reduce X,XXX start this, to QX. QX, XX,XXX metric metric plan the XXX% tons to of we in We to XXX% shipment project XX,XXX compared a the meaningful tons need XX,XXX will metric our metric approximately to of to increase our inventory of continue second to XX,XXX metric XA to approximately to tons To achieve by quarter. an tons to

XX, In a share until of our approved XXXX. million Board November repurchase XXXX, program, $XXX Directors December effective

share Energy May RMBX.XX receive approximately dividend shareholder with of by dividend X, plan. X.XXX expect million could was our amount an plan ADS. to Xinjiang we Daqo’s approximately now, distribution $XX.X XXXX repurchase shareholders’ improved XXXX, Daqo XX.X% Therefore, have million be As cash of of the we On to April the resource and financial after-tax, New as which the its a approved for meeting. in already billion Xinjiang repurchased Daqo, implement spent subsidiary

new likely is era world. cost It become PV continuous power expected green that in important has PV for create will generally PV energy eventually the begun. The reduction most one a solar solar is additional to products exceeding believe expectations. just analysts’ We substantial to most solar of expected the energies demand

of will from our keeps the next technology to our polysilicon N-type very thanks type required PV generation believe to ability solar polysilicon of help evolving, technology. we high us for needs as increasing addition, produce the for differentiate In competitors that purity the of

solid growth We and capture one best PV the will to balance long-term global order to the sheets continue market. sure to benefits in solar of have the of industry make in maintain our

XXX,XXX impact and produce annual the of of move polysilicon metric guidance. company to metric polysilicon the tons produce let’s during for metric facility expects company XX,XXX company’s to year. approximately Now, the to tons of expects full outlook tons quarter of The of of the XXXX, to The approximately the XX,XXX second inclusive XXX,XXX year to metric tons this maintenance.

CFO. call over Ming, please. our Now, I will the turn to

Ming Yang

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

Let balance me our strong sheet discussion cash on start the with our position. company’s and

billion materials note of immediately used receivable receivables and cash domestic balance of note for by XXXX of of an equipment at company’s $X.X As bank Longgen ended for quarter. bank company the XXXX. which or to of bank increase the raw are the cash total note than cash $XXX more pay to $XXX either is trade balance first billion, and major redeemed issued $X.X the the These end suppliers receivable can banks notes the million, financing for Inclusive be compared of balance indicated, end million of quarter reached purchases. with purpose as and used

the value ADS. the billion to ownership leading has nameplate share the our by of to quality production of and On low represents approximately plant by represented Daqo. has of This operating a class cost share our a the capacity our equates as operating is the generate of per per Corp.’s first operating quarter quarter reflecting combined on of of excludes activities than subsidiary, and year. our $X.X Energy basis alone equipment, which and which structure metric quarterly This this cash two world tons $XX.XX basis, cash with XX.X% XXX,XXX from on at flow of Daqo this in the facilities, $XXX cash balance polysilicon Xinjiang sheet flow million witnessed value more healthy property, product value New continue and in the end

was to been $X.X purchase already plans $XXX on spent Inner of total City, PP&E end Mongolia Phase our with of related CapEx project Baotou of million, X in had capacity the With projects expenditure regard XXXX, approximately first At planned capital our which $X.X of the primarily the polysilicon Inner for expansion to billion. and billion was approximately March, quarter Mongolia. approximately

will $XXX the spent be this end by expect million remaining the of year. We

Phase million and for we XXXX. be billion For in project Inner $X.X and be well. will Mongolia be the CapEx X, will $XXX this related paid expect CapEx year expect approximately total will approximately this currently XXXX We remainder to as

schedule on Mongolia adjusted For market plans X progress the maybe and the construction and schedule Inner adjust conditions project both construction capital expenditure project, accordingly. based and we project may Phase project

of to mitigated fourth of in the compared RMBXXX.X margin quarter first fourth of and Gross RMBX.XX XXXX. was first the to for was performance million financial selling company’s decrease XXXX profit to XXXX decrease lower XXXX. XX.X% margin due prices. quarter gross of million XXXX fourth the were and compared in of due compared quarter the by average in to compared to fourth quarter Gross is XX% was quarter The fourth quarter discuss quarter RMBXXX million primarily average selling prices the first XX.X% will revenue costs. in production RMBXXX.X the of in million the in primarily the to compared XXXX Revenues I in quarter quarter The the to Now, XXXX. the RMBXXX first decrease and of a in in million of lower XXXX. billion RMBXXX.X

in million XXXX. during to quarter $XX first share company’s in quarter to fourth plan the the quarter the RMBXX.X expenses RMBXX XXXX includes SG&A in million quarter SG&A incentive compensation to million were related share compared compared non-cash based costs of of RMBXX the million and first XXXX. of the million RMBXX.X fourth in expenses

place of primarily XXXX the operation R&D R&D the initiatives. vary in first of during XXXX. RMBX.X RMBX.X to which quarter of compared expenses in R&D can RMBXXX the million from expenses RMBXXX.X was period XXXX RMBXXX.X quarter the and to in million compared activities improvement of to reflect million quarter that period the and first quality RMBX.X from our million million to fourth million related take was XXXX. quarter Income quarter, fourth in

RMBXXX.X Operating in first and Daqo $X.XX XXXX Earnings quarter million million share-based in fourth and first of the ADS, $X.XX Corp. Net shareholder net RMBXXX.X and XX.X% quarter to of in compared XXXX costs. of in RMBXXX compared Energy basic XX% quarter margin of the XX% to XXXX. first New Energy non-cash attributable quarter New XXXX. was Daqo Adjusted the in fourth to including fourth XXXX to attributable million shareholders, was $X.XX income income compensation quarter was quarter the XXXX. the compared in of the per of

RMBXXX and compensation in RMBXXX million million XXXX share-based non-cash the Excluding million XXXX. costs quarter quarter to compared fourth RMBXXX was the first in of of

earnings the compared was of the fourth quarter RMBXXX.X to in basic $X.XX the ADS XXXX. XX% and compared XXXX. was per million fourth XXXX the quarter RMBXXX.X in the Adjusted quarter compared first to $X.XX million quarter and million fourth in the in XXXX. $X.XX and XXXX quarter EBITDA XX.X% quarter XXXX RMBXXX.X was EBITDA of in to XX% margin in of first first of of

condition. company’s the financial on Now

in As billion XX, the company XXXX RMBX.XX restricted cash as RMBX.XX RMBX.XX XX, notes March RMBXXX billion And March compared receivable as as billion cash to and cash and as equivalents billion XXXX. of of XX, XX, March of as RMBX.X March to compared XXXX of December XXXX, XX, December and of had balance and million XXXX, XX, XXXX. of was billion RMBX.XX

the on flows. cash Now company’s

operating months And was for ended of cash net the XXXX. million to Difficulty]. in XXXX, by period X net March the [Technical zero million RMBXX.X compared the XXXX, activities And million of RMBXXX.X activity same and RMBXXX cash net provided X used provided XX, net finance the months cash the same was provided March cash providing by million X by investing period by in XXXX, activities million for The was financing XX, activities same months For in net last cash investing period of was to activities this RMBXXX.X RMBXXX ended for XX, March of year. XXXX. ended the compared

to would from call the we like open Q&A operator, audience. Now the for

Operator

will [Operator ROTH Instructions] Shen Our Philip come first Capital from question with Partners.

may You now go ahead.

Philip Shen

questions. my Hi, Thanks taking for everyone.

is more in ship row? two production one shipment the your have might of your didn’t inventory volumes I you in quarters of thought inventory? release of QX been inventory sorry volumes because When production prior the the do think as of – because low XXX% percentage quarter. you First why QX think you ship you a that will a than for Thanks. on We so in in that

Longgen Zhang

is still that is year, December, quarter I waiver first capacity the remember And in November capacity the call the the our New last the think slow. we the maybe I capacity, XX% capacity minimum downstream to Chinese January, really Year, reduced Phil, or they XX%. starting – sales think, producer, November, I the also the I almost maintenance think very the

So, move actually some we as selling the to starting second is February of the March the shipments capacity quickly to and we come have to are and so month, March end quarter. back

So today, the more as basically, today, contracts right than April, of already quarter so XX,XXX this far tons we now. signed

So we selling second quarter, volume see high. be the should

volume in quarter. of tons, reduce mostly the this So, quarter the so to of by expect last week, can our month end we goods quarter we is tons, – second the the by XX,XXX shipping sales to shipping this we end X,XXX basically, this inventory are the regular where quarter, just

Philip Shen

shipping And Great. Longgen. there Thank XX,XXX think tons. XX,XXX guidance QX you, I your to metric see did I

talk great. seeing how for you given supply for and poly the what for situation So are about demand the you QX, pricing outlook that’s QX poly? Can XXXX – Thanks.

Longgen Zhang

China, bidding cannot the basically look price, $XX, I the QX, if you price especially go selling prices we Then price price, the you you slowed of look future way price the down. the the contract also at But QX, selling down. see the our our QX, is Basically, the if future. give module selling projection the

cell So, around from now silicon what by you basically, the tell is RMBX.XX. is if cost that wafer like today module,

like if valuating So, your QX selling by text. selling divided – is module RMBX.XXX

net maybe like around RMBXXX. the is So

industry like RMBX.XX your last around around is $X.XX, whole last year, that’s even in the to is in RMBX per the or margin year gross – Compare price your $X.XX. So selling selling module watt.

in think definitely down. will slightly think basically, per ASP $XX is X the tell to how we I right see RMBXXX around between because continued kg So I months will price ASP much we still I go U.S. stable next the second around think slowdown. the quarter the now maybe see you, $XX. will dollar of I be was cannot But And

it quarter, pickup. big depends many third all come – how think the the I how the In demand on the production out, new

selling QX, mostly think it’s will QX, maybe be every really, ASP So we QX, stable, then challenging as the year.

because of traditional but between only waiver. western, also the not think Okay, holiday silicone bargain think I I the China, and a

quarter. challenging So, basically, QX is the

to RMBXXX. think RMBXXX So, maybe go it will down I even

grow. as you the we if cannot I is demand So, you And tell exact figure. said, the look at to continuing XXXX,

Of output to silicon continued in China increase. course, also

selling So, differentiated from differentiate Daqo has ourselves high ourselves is to to more quality of N-type people. silicon other

ASP than China use Today, can $XX, are can selling still like around U.S. of our we competitors The per China. into silicon reason higher because So sell kg. their in in outside are our $XX I is market. they hoping ship little OCI,

our logistic already is our there, see our differentiator quality, So, that’s the our way and the cost. – differentiator efforts put you the is efforts

like we to X% hope Daqo that is around a we is to achieve maybe industrial XX% year, That’s margin think I do so XX%. you. say even XX% we more, can tell only or premium little challenging XX% can though can even So XXXX the okay, gross let’s a XX%,

Philip Shen

Thank lot of Okay, that’s Longgen. color. a you,

about be the talked you to you might pricing You able that think premium get.

to to per was $XX. about you sales pricing? think quality? timing kilogram the your think But – $XX that your due the a think just your talked Thanks. to realized primarily talk quarter ASP I due about of in premium $X price your what Can to versus is little average is difference or spot close a closer that first through the poly it was Is better spot in and I QX, kilogram you specifically, bit. I

Longgen Zhang

see I we per already N-type RMBXX RMBXX now difference, continue the capacity around up, kg, that right maybe P-type, is there of to N-type think the be enlarged, Basically, to demand type for the as then will see think were difference come later, you and current we because more.

in if can how we the difference, future future, think we price the exactly basically, basically, price think a it’s XX% you, of our tell selling products I maybe should challenge. but I can our possible, in lot be is goes. the it’s of N-type, sell it’s $X So the Really, so future,

Philip Shen

Yes, great. That’s okay.

Longgen Zhang

fortress important is important us – we sheet. yes, the balance But most a most to have

said, the a is $X billion. almost now just note Ming As right cash plus banking receivable today

are – CapEx the our We control cash to continuing try as we cash market generate operating to continue going. and the

if example, scenario, For the we Inner then CapEx. can Mongolia market into worst more slowdown Mongolia go – XB,

most sheet. to balance important the think. to think we I our So – I That’s our continue focus straighten

Philip Shen

Great.

Okay. this And on the have? planning my are cash you thoughts approved? What you that given buybacks additional this year that, Thanks. $XXX do last to that your the question is beyond million are given here,

Longgen Zhang

moment, this We I around already $XXX used just think $XX At declared million. million. think we I

left think I we $XXX is And early So think foreign only exchange, slow, I I too the were think heated the million. accounts, dividends May. of

we say still it’s of shares total XX% to compared lot. That’s – million our the let’s even outstanding a So capital have shares. almost $XXX market, like

that we basically, renminbi exchange. to know have So, the to program to foreign chance you repurchase all from

So the is the dividend declare. reliable only right now sources

So only we – you the tell million is the purchase year, think so today still forecast can only end $XXX far basically, of this at I just program. I by

Philip Shen

much very will it you on. Longgen. thank Okay, I pass

Longgen Zhang

Phil. Thanks,

Operator

Gary Our Suisse. Zhou with next come will question Credit from

go now ahead. may You

Gary Zhou

question. Zhou Thanks is for from Credit This management. taking my Hello Gary Suisse.

side. two So, questions my from

is the also the so so proceed. follow-up to firstly, amount significant a So rest Longgen as of has to on buybacks, the amount mentioned, quite basically

can us just of question, attacks on polysilicon wondering sales. April kind think, there So, buyback. that the less color we color secondary if just kind – kind management do more have would more how if more would of of the give quick – on can timing, we company is some And share kind wondering we of range those proceed, has price or if thinking more the are

to of kind our inventory we this starts down idea see confident of do in quite management how that start inventory believe our we going more the in and second basically, April Thank on can just you. one have quarter? lot So, kind the a

Longgen Zhang

I color. Ming? first answer I to will question, buyback Ming question answer will your second your ask

Ming Yang

for your question. you thank Gary,

million as end of is share So, program, been and this so we program through Longgen has repurchase million have really used, And indicated million the do $XXX XXXX. which there $XX earlier, of our is $XXX left.

transferred distribution to just did offshore. we now and has from enrolled the received dividend be Xinjiang So, right Daqo, needs

RMBX.XX be So, in this million. approximately of total, will $XXX north or billion just

it would be used do financial I So our fund share And except be could to the throughout definitely, opportunities really no will attractive, to price to that repurchase be opportunity year terms source repurchase we in certainly, repurchased is price, and shre anticipate timing, timing, take would that think the will especially really the look if specific that. at this share look plan. for there we is of we

Longgen Zhang

shipment Gary, few contract XX,XXX more far around inventory the first end an questions I now By today movement. have think April, XX,XXX just think And than April, so I tons. tons. the a right answered I I of is quarter, sold a we think about we in

But to on gradually RMBXXX see fluctuation the Especially sign a I week quick history. rollout. now, price is different now, or see of price clients. right the see even every we a is sign think Hopefully, between more see very is if most price. we we customer silicon, worry, the per the of we is contracts, RMBXXX Kg. every there contract with you silicon now right stick we right the month, stable slowdown. scenario the The almost So, back, history stable, Because the the clients, lot come today because little of there from can that almost the is

we So, were basically seeing, more. selling in May are month, we next

think this recognize as X,XXX were we So, our in I tons, revenue out, gave of to we end inventory the we guidance, quarter shipments, keeping the that is the expectation, hopefully. the already the cannot

Gary Zhou

it Longgen. This Thanks is on. will clear. you. very pass I Thank

Longgen Zhang

Gary. you, Thank

Operator

with Alan will Our come next question from Lau Jefferies.

go now may You ahead.

Alan Lau

taking my questions. for management Thanks

having And a very like been tons that more technology. show have expansion next very the perspective of also long-term some peers are because of would VR XXX,XXX ask plan, from low more cost the year. capacity some to we of with aggressive than So, peers

I with So, there of be market know would maintaining or your partnership or the be strategy in to capacity will expansion there some your price? Thanks. will stabilize your acceleration like peers to share in

Longgen Zhang

Ming?

Ming Yang

your for question. Thank Okay. you

So, our did plan. we see expansion capacity aggressive peers

from be say it additional raising. example, the the subject capital these terms to a of also will think I conditions. subject in I is market to market would for And Asia or more also funding projects capital lot their of less

right, we as example, is indicated, market good. condition For the

the cancel in and process, we productions in now. now or capacities reach we there do market delay would if has capacity plant. the that that than the X of more cost are or the and and project model our if example, we planned polysilicon less if we may for we demand pricing strong additional polysilicon for actually as where Siemens And will the then at also our Mongolia with a one or the case, So half are And accelerate terms our naturally, projects healthy, would Inner of poly some grade, expansion let’s untied supplier industry in either decide do China type track of of costs, project regard to the polysilicon, not and pricing at say targets we does think and capacity XX% become new us. not second we example, certainly attractiveness, in past, we expansions down look shutdown would also might believe seen slowdown remains remain right to, close okay. least on largest to looking Phase and the of that’s the quality than for that move within But expansion would of of lot

have by I products think think N-type, are of customers. for quality, the to I continued best especially accepted we really our and some So, the

that will think make next product. N-type important, that product quality big year right the process higher once quality become the even that have understanding year, with products And might believe half I the market we does do in this I that quality we with some manufacturer is do think think becomes as especially believe I is, quality different we our lower more product and much a maybe in into lower have pricing. of when are the go second we what are though think – already in regard a available, pricing to lower do polysilicon especially more that that than seeing lower difference, costs,

more think price, in lot we market what I is the the a the that fact in the month polysilicon of us, of market. a moving pricing seeing lower-quality price of currently. decline are the into gradual the past price the in the of products is actually market, that And was pulling we the result they to saw that market in to overall lower average offer these have but down

Alan Lau

Ming. lot a Thanks Understood.

is, like, from new the up do do you plants? So, side of the ramping my how RMBXX and going see production costs optimization forward with another can think you question our below cost get eventually

Ming Yang

Okay.

you so if production almost QX QX right, Alan, actually quarter-over-quarter RMB indicated, compare basis. example, so as our – our compared actually to down on for costs, went X% we So, it

of RMB, kilogram. close And was RMBXX RMBXX cost QX to is our to in close I So, costs think actually already our per then QX per kilogram. terms

facility process. one in say, with I people, or right, up would right, we Inner with that site has has, think similar single manufacturing I in once a efficiency our compared better even our less we updated So, Xinjiang Mongolia anticipate an of to terms do facility, ramp which

indicated. targets additional think And the reductions that think the think ramps have in cost opportunity see very have has I to we So, price you very it to our price as good – opportunity this up. that good planning, of that reach do terms we internal do we facility

Alan Lau

Thanks a lot. That’s very clear.

pass you. will it. Thank I So,

Ming Yang

you. Thank

Operator

comes question Chaudhri next Capital. from with Our Rajiv Sunsara

may go ahead. You now

Rajiv Chaudhri

for I morning the congratulations question. cost good in want you, to Thank on challenging strong follow-up just and quarter circumstances. producing a very

beginning capacity the now, that produce structure How quarters? is raw internally built shape cost material least the coming in or also being are You will the to for your that. at

Longgen Zhang

go invest license are improvements. planning Mongolia, energy we to having the the yes, in in improvement, metal – and we I by in think the the the to way, already process so, still silicon to

those end the the So, is, of schedule got the all hopefully right by of now July. licenses maybe

we silicon next by if this are [indiscernible] think metal. basically smoothly, can Hopefully, the or plant. end we year, So, produce of metal we starting got the year the then I everything silicon QX

I now I maybe. tons think – dramatically our But to reduce like powder think around is XX,XXX XX,XXX will that silicon reduce costs tons.

down XX,XXX we can go think to I tons.

basically think I costs think $X, to So, cash least reduced, the at yes. are $X I

Rajiv Chaudhri

Okay.

$X, So, your… $X reduce to so that would

Longgen Zhang

now Renminbi $XX. now is for our first cost cash per right Kg. By quarter example,

reduce think So, around own RMBXX. metal, I to if silicon produce we our maybe we can RMBXX,

Rajiv Chaudhri

Got it. Thank you.

Longgen Zhang

Great. Thank you.

Operator

[Operator next Instructions] Our from Investments. with [ph] question AIIM will Lin Rocky come

now may ahead. go You

Unidentified Analyst

is, in year? for pace you program, tell I our million good Congratulations me question the Hey. this earnings. My repurchase repurchase of first $XXX you our program? can your mean will report all

Ming Yang

Yes.

the program right over of I be the plan And current it to for that’s more less or think year. now. in least is year. plan terms current the the still current At pace, complete the think out should I stretched

Unidentified Analyst

oversupply, question you think so after they second expanding that is, is – possible But plan plan will second Mongolia? any are for somehow Okay. Got it. And other my maybe expanding expanding your I capacities. the there of their Inner phase stop our competitors,

Ming Yang

Okay.

So, I in no will of say, the overall there is oversupply today. market polysilicon

the okay. a through and I market. right and supply are market relatively we is demand are right escalation is actually April, now right, healthy peak we seeing October, starts reached. has overall. so suddenly What very in balanced And demand and the timeframe is because, the the from summer Generally in now, there June demand really think end from

or the seeing very to where running and at at from demand quartz by a what overall availability actually levels, we And to are QX purity high actually And certainly looking now, sell really are production be because capacity these the quality we range think are manufacturer much But high of than is XX the we polysilicon industry estimate – should of QX, month. manufacturers. utilization wafer we the manufacturers crucibles. in right as QX. near-term product somewhere make wafer So, per high very used to least our production is, also do is stronger XX constrained at in quartz gigawatt gigawatt

and very So, limiting that’s into their in ability a made near-term their availability wafer. production utilize or polysilicon total the to to be

do current the monthly tons. polysilicon tons the industry the in somewhere we currently of metric between of of a to to market. metric is on XXX,XXX actually that’s production So, And amount that consumption XXX,XXX estimate polysilicon similar basis

in availability, balanced production or unless supply end in, capacity, think market we the I now. that but have I we but example. without relatively demand, that currently. think right demand that or wafer So, have indicated, And of increase then and And see seeing polysilicon an production say, say is let’s not increase condition you scenario in kind the are might for substantial,

Unidentified Analyst

mean, I second low less contract time? I less down, like really than [Technical prices than maybe stop maybe like the if Difficulty] mean you Yes. will

Longgen Zhang

basis. see, let’s goes pricing, less per yes, it down than to assumption Is kilogram $XX

will think capacity our slowdown I we expansion.

Unidentified Analyst

That’s all my questions.

Longgen Zhang

Thank you.

Operator

will question Goldman next Our with Zi come from Sachs. Shou [ph]

may now go ahead. You

Unidentified Analyst

Thank any second ask for you would quarter? you will my the guidance you share also And costs cost production expected to Thank have question. your quarter I current for for for and Hi. second if level? Can you. cash the possible taking it

Ming Yang

your much Okay. so Shou, question. for thank you

So, CFO. this Ming, the

looking I silicon raw QX electricity. our that have metal, most well recent of especially as for for our been would costs, for as I So, say the at trends materials,

expect we stable. very these example, to be For

QX we overall, so our And cost. believe

going Mongolia cost in QX similar basis to in Inner fully ramp. QX our to structure. should We do be should RMB decline actually currently. to fairly costs QX, the costs are ramping Mongolia be that we to the compared think up So, our close start And

Longgen Zhang

then operation to I second to reason the a volume it sales will cash, is the is But XXX% The increase high, then, high almost QX is XXX% think because cash be quarter operation – QX. compared

Unidentified Analyst

Thank so Understood. much. you

Longgen Zhang

you. Thank

Unidentified Analyst

Thank you.

Operator

now This question-and-answer concludes I over our session. remarks. turn would like to closing He for back any Kevin to it

Kevin He

Should have everyone questions, please and don’t you you today’s to in conference for us. further bye-bye. Thank again any participating Thank call. hesitate contact we

Operator

for today’s you The conference has presentation. now concluded. Thank attending

You may now disconnect.

Daqo New Energy (DQ) 27 Apr 232023 Q1 Earnings call transcript