Daqo New Energy Corp. Reports Q3 2024 Results

NEW YORK – Daqo New Energy Corp. (NYSE:DQ) reported narrower-than-expected losses for the third quarter of 2024, sending shares up 2% in premarket trading on Wednesday.

The Chinese polysilicon manufacturer posted an adjusted loss of $0.59 per American Depositary Share (ADS), beating analyst estimates for a loss of $0.70 per ADS. Revenue came in at $198.5 million, falling short of expectations for $271.62 million.

While still reporting a loss, Daqo's results showed improvement from the second quarter's adjusted loss of $1.50 per ADS. The company attributed the narrowing losses to lower inventory write-downs compared to Q2.

> "Entering the third quarter, China solar industry's market conditions remained challenging, exacerbated by the overall over-supply in the industry," said CEO Xiang Xu. "Market selling prices continued to be below production costs for the majority of industry players throughout the entire value chain."

Daqo reduced its production utilization rate to 50% during Q3 due to weak demand, producing 43,592 metric tons of polysilicon compared to 64,961 metric tons in Q2. The company lowered its cash production costs to $5.34/kg from $5.39/kg in Q2.

For Q4 2024, Daqo expects polysilicon production of 31,000 to 34,000 metric tons. The company narrowed its full-year 2024 production guidance to 200,000-210,000 metric tons.

Despite ongoing industry challenges, Daqo maintained a strong balance sheet with $853.4 million in cash and no debt as of September 30.

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