Daqo New Energy has published its financial report for the second quarter of 2015. The company completed the annual maintenance of its Xinjiang polysilicon facilities in May, and it faced a decrease in the quarter. The financial decrease was mainly attributed to the decreases in production and sales volume, and the increase in production cost.
The average selling price (ASP) of Daqo’s polysilicon was declined from the first quarter’s $18.09/kg to $15.95/kg. The rapid drop could be explained by the dumping from overseas polysilicon manufacturers through the processing trade loophole.
Daqo’s phase 2B capacity expansion is running on schedule, and is expected to achieve full production capacity by the end of August. The production cost would be reduced to a level below $12.00/kg when the facility is fully ramped up.
The company aims to sell 2,100~2,200 MT of polysilicon in the third quarter of 2015.
Second Quarter 2015 Financial and Operating Highlights
- Polysilicon production volume of 1,734 MT in Q2 2015, compared to 1,801 MT in Q1 2015
- Polysilicon sales volume of 1,363 MT in Q2 2015, compared to 1,502 MT in Q1 2015
- Polysilicon total production cost of $12.98/kg in Q2 2015, compared to $12.80/kg in Q1 2015; cash cost of $10.60/kg in Q2 2015, compared to $10.53/kg in Q1 2015
- Average selling price (ASP) of polysilicon was $15.95/kg in Q2 2015, compared to $18.09/kg in Q1 2015
- Wafer sales volume of 18.3 million pieces in Q2 2015, compared to 18.1 million pieces in Q1 2015
- Non-GAAP gross margin of 19.6% in Q2 2015, compared to 28.0% in Q1 2015
- EBITDA(non-GAAP) of $8.4 million in Q2 2015, compared to $11.4 million in Q1 2015
- Net loss attributable to Daqo New Energy shareholders of $0.9 million in Q2 2015, compared to net income attributable to Daqo New Energy shareholders of $1.2 million in Q1 2015
