Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading polysilicon manufacturer based in China, today announced its unaudited financial results for the third quarter ended September 30, 2011.
Third Quarter 2011 Financial and Operating Highlights
- Polysilicon shipments were approximately 1,022 metric tons, or MT. Photovoltaic (PV) module shipments were 1.9 Mega watts, or MW. In addition, the Company provided 9.4 MW PV modules manufacturing outsourcing service to its customers. Wafer shipments were 6.5 MW.
- Revenues were $59.6 million, compared with $70.7 million in the second quarter of 2011 and $63.2 million in the third quarter of 2010.
- Gross profit was $19.9 million, compared with $33.0 million in the second quarter of 2011 and $26.9 million in the third quarter of 2010.
- Gross margin was 33.3%, compared with 46.6% in the second quarter of 2011 and 42.5% in the third quarter of 2010.
- Operating income was $17.1 million, compared with $32.6 million in the second quarter of 2011 and $24.0 million in the third quarter of 2010.
- Operating margin was 28.8%, compared with 46.2% in the second quarter of 2011 and 38.0% in the third quarter of 2010.
- Net income attributable to Daqo New Energy Corp. shareholders was $12.1 million, compared with $25.7 million in the second quarter of 2011 and $17.7 million in the third quarter of 2010.
- Earnings per fully diluted ADS were $0.34, compared with $0.73 in the second quarter of 2011, and $0.65 in the third quarter of 2010.
"The global solar PV market remained challenging in the third quarter due to the weak demand and industry oversupply. The average selling prices throughout the whole supply chain continued to decline, which impacted our performance in the quarter. The weak market is expected to continue in the near term and the pricing environment for our core business, polysilicon could continue to decline,” commented Gongda Yao, Chief Executive Officer of the company. “However, we believe our low cost and high quality polysilicon product is better positioned to weather through the stormy market environment and we should come out stronger once the market environment improves. Also, we have one of the best balance structures among China solar companies, as well as un-used bank facility, which will help us to endure during the down turn. We will continue to execute our Xinjiang expansion project and Wanzhou hydrochlorination project, which should further lower our production cost in the future.”