EX-99.1 2 v378235_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Daqo New Energy Corp. Announces Unaudited First Quarter 2014 Results

 

- Returned to profitability in Q1 2014

- Non-GAAP gross margin of 30.2%

- Q1 2014 EBITDA of $13.7 million, up from $8.1 million in Q4 2013

- Polysilicon cash cost of $11.8/kg and production of 1,517 MT

- Increasing production capacity from 6,150 MT to 12,150 MT by the end of 2014

 

CHONGQING, China—May 12, 2014—Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or “we”), a leading polysilicon manufacturer based in China, today announced its unaudited financial results for the first quarter of 2014.

 

   Three months ended 
US$ millions except as indicated otherwise  Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
Revenues   42.1    37.0    14.5 
Gross profit / (loss)   9.0    1.0    (12.9)
Gross margin   21.4%   2.6%   (89.0%)
Operating income / (loss)   6.6    (4.1)   (16.6)
Net income / (loss) attributable to Daqo New Energy shareholders   2.6    (8.0)   (18.7)
Earnings per ADS ($ per ADS)   0.38    (1.16)   (2.70)
Non-GAAP gross profit *   12.7    6.8    (3.2)
Non-GAAP gross margin * (%)   30.2%   18.5%   (22.3%)
EBITDA (non-GAAP) *   13.7    8.1    (2.4)
EBITDA margin * (%) (non-GAAP)   32.5%   21.9%   (16.6%)
Polysilicon shipments (MT)   1,391    1,271    706 
Polysilicon production cost ($/kg) **   14.5    15.8    23.6 
Polysilicon cash cost (excl. dep’n) ($/kg) **   11.8    12.0    15.8 

 

* Daqo New Energy provides non-GAAP gross profit, non-GAAP gross margin, EBITDA and EBITDA margin on a non-GAAP basis to provide supplemental information regarding its operating performance. For more information on these non-GAAP financial measures, please see the section captioned "Non-GAAP Financial Measures" and the tables captioned "Reconciliation of non-GAAP financial measures to comparable US GAAP measures" set forth at the end of this press release.

 

** Production cost and cash cost only refer to our Xinjiang polysilicon facilities.

 

“I am pleased to report Daqo New Energy’s return to profitability in the first quarter of 2014,” announced Dr. Gongda Yao, the Company’s Chief Executive Officer.

 

“We increased shipment volumes by 9.4% quarter-on-quarter (QoQ) to 1,391 MT, expanded EBITDA margin to 32.5% from 21.9% in the previous quarter, and produced positive operating income of $6.6 million, marking the Company’s return to profitability on a net income basis for the first time since the third quarter of 2011. This was achieved despite the costs relating to the non-operational Chongqing polysilicon plant of $3.7 million this quarter.”

 

“I would also like to highlight that we have achieved a cash cost (which excludes depreciation) of $11.8/kg, and a production cost (including depreciation) of $14.5/kg, which we believe are amongst the lowest globally. We will continue to focus on optimizing our operation and improving our cost structure for the remainder of 2014. We expect our annual average cash cost (excluding depreciation) and production cost (including depreciation) to be approximately $11.3/kg and $14/kg, respectively. As we expand our polysilicon annual capacity from 6,150 metric tons (MT) to 12,150 MT, and upgrade our production process, we expect to further lower our polysilicon cash cost (excluding depreciation) and production cost (including depreciation) to approximately $8.7/kg and $12/kg respectively by the second quarter of 2015. Specifically, by improving our processes and relocating our polysilicon facilities to Shihezi, Xinjiang, we continue to strengthen our position as a low-cost leader. We have secured exclusive, preferential electricity rates from the Shihezi local government until 2020, which we believe are amongst the lowest in China.”

 

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“By executing our strategy of reducing costs and producing high quality polysilicon, we have emerged a stronger and profitable company.” Dr. Gongda Yao added.

 

“We also benefited from continued strong demand in the photovoltaic market and the high quality of our product, which increased ASPs to $21.63/kg from $18.67/kg in the previous quarter.”

 

“On the capacity front, following the debottlenecking project in December 2013, we have now reached name plate capacity of 6,150 MT of polysilicon per annum, with production of 1,517 MT in the first quarter of 2014, up from 1,445 MT and 1,311 MT in the fourth and third quarters of 2013, respectively.”

 

“We have also commenced construction for the next stage of expansion, which will add a further 6,000 MT and take nameplate capacity to 12,150 MT once completed. We expect to complete construction work by the end of 2014, with a target of reducing our cash cost (excluding depreciation) and production cost (including depreciation) to approximately $8.7/kg and $12/kg respectively when capacity is fully ramped up by the second quarter of 2015.”

 

“We have spent approximately $22 million on the expansion to date, with a further $59 million to be spent through the remainder of 2014, and finally a further $16 million after capacity has been fully ramped up.”

 

“In addition to the polysilicon capacity expansion to 12,150 MT that is underway, the Company is also considering further

capacity expansion at the Xinjiang facility in the medium term, with a goal of expanding capacity to 25,000 MT, subject to

market and industry conditions.”

 

“We are also improving our production process by adopting hydrochlorination technology which will significantly reduce the conversion temperature thus resulting in much lower electricity consumption and further reducing costs.”

 

“Overall, we have prudently managed the business and diligently worked towards improving the Company’s scale, cost structure and technology. Having turned around both financially and operationally, we believe the Company is in an excellent position to drive future growth and navigate any future market challenges which may arise,” concluded Dr. Yao.

 

Commentary

 

Improvement in operational and financial performance

 

Daqo New Energy’s operational and financial performance for the quarter benefited from several factors, including the continued increase in ASPs resulting from strong market demand for polysilicon, and higher production levels and sales volumes. Our average selling price for polysilicon increased 15.9% compared to the fourth quarter of 2013.

 

In the first quarter of 2014, we produced 1,517 MT of polysilicon, up from 1,445 MT and 1,311 MT in the fourth and third quarters of 2013, respectively. Polysilicon production reached nameplate capacity of 6,150 MT in the first quarter of 2014. We shipped 1,391 MT of polysilicon and 16.8 million pieces of wafer in the first quarter of 2014, compared with 1,271 MT of polysilicon and 16.7 million pieces of wafer in the fourth quarter of 2013.

 

Total production cost (including depreciation) was $14.5/kg and cash cost was $11.8/kg, compared to production cost of $15.8/kg and cash cost of $12.0/kg respectively in the fourth quarter of 2013.

 

Our continuous cost reduction efforts, along with the improvement in average selling prices, have enabled us to return to profitability for the first time since the third quarter of 2011. We believe the upward trend will continue as long as the solar PV market maintains its strong momentum in 2014 and the years to come.

 

Subsequent to the end of the first quarter of 2014, the Company also successfully completed its annual maintenance and preparation works for the expansion project within a 5 day period in early April. This is 2 days faster than scheduled and 12 days faster than the annual maintenance work carried out in 2013, reducing operational downtime and the associated impact on production.

 

Market outlook and Q2 2014 guidance

 

According to NPD Solarbuzz, new solar PV demand added during the first quarter of 2014 exceeded 9GW, which was 35% more than the previous first-quarter record, set in 2013. The record level of demand achieved in the first quarter was driven by strong growth in Japan and the United Kingdom. These two countries combined accounted for more than one-third of global solar PV demand in the first quarter of 2014 and set new quarterly records for PV deployed. Solar PV demand during the first quarter typically accounts for up to 20% of annual demand. We expect China and the United States markets to rapidly ramp up in the second half of 2014, which will help the industry to achieve 45GW of installations in 2014. We also expect the average selling price of polysilicon to be strongly supported by end market demand at the level of $20/kg to $25/kg during 2014.

 

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For the second quarter of 2014, the Company expects to ship 1,375 MT to 1,400 MT of polysilicon. The Company also expects to ship approximately 16.6 million to 17.0 million pieces of wafer. Note that we halted polysilicon production in April for 5 days of annual maintenance which negatively impacted our April production output. This outlook reflects our current and preliminary view and may be subject to change. Our ability to achieve this projection is subject to risks and uncertainties.

 

First Quarter 2014 Results

 

Revenues

 

Revenues were $42.1 million, increased from $37.0 million in the fourth quarter of 2013 and $14.5 million in the first quarter of 2013.

 

The Company generated revenues of $30.1 million from polysilicon, increased from $24.2 million in the fourth quarter of 2013, and $11.3 million in the first quarter of 2013. The increase from the fourth quarter of 2013 was primarily due to higher sales volumes and higher average selling prices.

 

The Company generated $12.0 million from sales of wafers, compared to $12.8 million in the fourth quarter of 2013 and $3.2 million in the first quarter of 2013.

 

Gross profit and margin

 

Gross profit was $9.0 million, compared to approximately $1.0 million in the fourth quarter of 2013 and a gross loss of $12.9 million in the first quarter of 2013.

 

Gross margin was 21.4%, substantially increased from 2.6% in the fourth quarter of 2013 and negative 89.0% in the first quarter of 2013. The continuous improvement in gross margin was mainly attributable to higher average selling prices and lower production costs for both polysilicon and wafer.

 

During the first quarter of 2014, we revised our estimates of the expected useful lives of our machinery and equipment from 10 years to 15 years, and our buildings and structures from 20 years to 30 years, to better reflect the economic lives of these assets. The change in estimate was in part based on an analysis provided by a third party valuation firm to assess the useful lives of these fixed assets. We believe the revised estimate of the useful lives is consistent with industry averages. The change in useful lives reduced depreciation expense that would otherwise have been recorded in the first quarter of 2014 by approximately $4.7 million, and we expect a similar impact going forward. The approximate effect on production cost from the change in estimate of the useful lives of certain long-lived assets for the quarter was approximately $1/kg.

 

In the first quarter of 2014, total costs related to the non-operational Chongqing polysilicon plant including depreciation were $3.7 million, decreased from $5.9 million and $9.7 million in the fourth and first quarter of 2013, respectively. Excluding such costs, the non-GAAP gross margin was approximately 30.2%, compared to 18.5% in the fourth quarter of 2013 and negative 22.3% in the first quarter of 2013. For a definition and a reconciliation of non-GAAP gross margin to gross margin, see “—Non-GAAP financial measures” and “—Reconciliation of non-GAAP financial measures to comparable US GAAP measures” below.

 

Selling, general and administrative expenses

 

Selling, general and administrative expenses were $1.5 million, decreased from $4.0 million in the fourth quarter of 2013 and $4.1 million in the first quarter of 2013. The decrease in selling, general and administrative expenses from the fourth quarter of 2013 was primarily due to a reversal of doubtful accounts of $1.8 million in the first quarter of 2014.

 

Research and development expenses

 

Research and development expenses were approximately $0.9 million, compared to $1.1 million in the fourth quarter of 2013 and $0.4 million in the first quarter of 2013.

 

Other operating income

 

Other operating income was $36 thousand, compared to $134 thousand in the fourth quarter of 2013 and $832 thousand in the first quarter of 2013. Other operating income was mainly comprised of unrestricted cash incentives that the Company received from local government authorities, which fluctuates from period to period.

 

Operating income/(loss) and margin

 

As a result of the foregoing, operating income was $6.6 million, compared to operating loss of $4.1 million in the fourth quarter of 2013 and operating loss of $16.6 million in the first quarter of 2013. This is the first quarter since the third quarter of 2011 that we have achieved positive operating income.

 

Operating margin was 15.7%, compared to negative 11.0% in the fourth quarter of 2013 and negative 114.7% in the first quarter of 2013.

 

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EBITDA

 

EBITDA was $13.7 million for the quarter, compared to $8.1 million in the fourth quarter of 2013 and negative $2.4 million in the first quarter of 2013. EBITDA margin was 32.5% for the quarter, compared to 21.9% in the fourth quarter of 2013 and negative 16.6% in the first quarter of 2013. For a definition and a reconciliation of EBITDA and EBITDA margin to our income from operations, see “— Non-GAAP Financial Measures” and “—Reconciliation of Non-GAAP financial measures to comparable US GAAP measures” below.

 

Net income/(loss) attributable to our shareholders and Income/(loss) per ADS

 

As a result of the aforementioned, net income attributable to Daqo New Energy Corp. shareholders was $2.6 million, compared to net loss attributable to Daqo New Energy Corp. shareholders of $8.0 million and $18.7 million in the fourth and first quarters of 2013, respectively. This is the first quarter since the third quarter of 2011 that we have achieved positive net income.

 

Income per ADS was $0.38, compared to loss per ADS of $1.16 and $2.70 in the fourth and first quarters of 2013, respectively

 

Financial Condition

 

As of March 31, 2014, the Company had $24.2 million in cash and cash equivalents and restricted cash, compared to $16.7 million as of December 31, 2013 and $11.7 million as of March 31, 2013.

 

As of March 31, 2014, the accounts receivable balance was $5.1 million, compared to $9.9 million as of December 31, 2013. As of March 31, 2014, the notes receivable balance was $34.0 million, compared to $15.9 million as of December 31, 2013. As of March 31, 2014, total borrowings were $260.2 million, of which $124.9 million were long-term borrowings, compared to total borrowings of $253.7 million, including $134.9 million long-term borrowings, as of December 31, 2013.

 

Cash Flows

 

For the three months ended March 31, 2014, net cash provided by operating activities was $15.2 million, compared to net cash used in operating activities of $24.3 million in the same period of 2013. From a quarterly perspective, we generated positive operating cash flow of $15.2 million, $0.3 million and $8.8 million in the first quarter of 2014, fourth quarter and third quarter of 2013, respectively. The improvement in operating cash flow was primarily due to the recovery of sales prices associated with improvements in the overall solar market and our continuous cost reduction efforts at our Xinjiang facilities.

 

For the three months ended March 31, 2014, net cash used in investing activities was $11.0 million, compared to net cash provided by investing activities of $0.4 million in the same period of 2013.

 

For the three months ended March 31, 2014, net cash used in financing activities was $3.8 million. Net cash provided by financing activities in the same period of 2013 was $22.8 million.

 

Non-GAAP Financial Measures

 

To supplement Daqo’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), Daqo uses in this press release non-GAAP gross profit and non-GAAP gross margin, which exclude costs related to the non-operational polysilicon operations in Chongqing, EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenue. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. Daqo believes that the non-GAAP financial measures facilitate investors’ and management’s comparisons to Daqo’s historical performance and assists management’s financial and operational decision making.

 

A reconciliation of Non-GAAP financial measures to comparable US GAAP measures is presented later in this document.

 

Conference Call

 

The Company has scheduled a conference call to discuss the results at 4:15PM Eastern Time on May 12, 2014.

 

Participant Telephone Numbers

 

Participant Dial In (Toll Free): +1-877-870-4263
Participant International Dial In: +1-412-317-0790
China Mainland Dial In (Toll Free): 4001-201203
Hong Kong Dial In (Toll Free): 800-905945
Canada Dial In (Toll Free): 18556699657

 

The conference ID number is 10045681

 

You can also listen to the conference call via Webcast through the URL: http://mms.prnasia.com/DQ/20140512/default.aspx

 

A replay of the call will be available 1 hour after the end of the conference through May 19, 2014 at 5:00PM ET.

 

The conference call replay numbers are as follows:

 

United States: + 1-877-344-7529
International: + 1-412-317-0088

 

The conference ID number for accessing the recording is 10045681.

 

Investors will also have the opportunity to listen to the replay over the Internet through the investor relations section of Daqo New Energy’s web site at: www.dqsolar.com

 

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About Daqo New Energy Corp.

 

Daqo New Energy Corp. (NYSE: DQ) is a leading polysilicon manufacturer based in China. Daqo New Energy primarily manufactures and sells high-quality polysilicon to photovoltaic product manufacturers. It also manufactures and sells photovoltaic wafers. For more information about Daqo New Energy, please visit www.dqsolar.com.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the second quarter of 2014 and quotations from management in this announcement, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; our ability to significantly expand our polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; and our ability to successfully implement our vertical integration strategy. Further information regarding these and other risks is included in the reports or documents we have filed with, or furnished to, the Securities and Exchange Commission. Daqo New Energy does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Daqo New Energy undertakes no duty to update such information, except as required under applicable law.

 

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Daqo New Energy Corp.

Unaudited Preliminary Condensed Consolidated Statement of Operations and Comprehensive Income/(Loss)

(US dollars in thousands, except ADS and per ADS data)

 

   Three months Ended 
   Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
             
Revenues   $42,087   $37,039   $14,485 
Cost of revenues   (33,064)   (36,081)   (27,376)
Gross profit / (loss)   9,023    958    (12,891)
Operating expenses               
Selling, general and administrative expenses   (1,498)   (4,016)   (4,126)
Research and development expenses   (937)   (1,148)   (436)
Other operating income   36    134    832 
Total operating expenses   (2,399)   (5,030)   (3,730)
Income / (loss) from operations   6,624    (4,072)   (16,621)
Interest expense   (4,112)   (4,199)   (5,278)
Interest income   120    49    25 
Foreign exchange gain (loss)   (2)   2    1 
Income / (loss) before income taxes   2,630    (8,220)   (21,873)
Income tax expense   -    (60)   - 
Net income/(loss)   2,630    (8,280)   (21,873)
Net loss attributable to noncontrolling interest   -    (266)   (3,209)
Net income / (loss) attributable to Daqo New Energy Corp. shareholders  $2,630   $(8,014)  $(18,664)
                
Net income / (loss)   2,630    (8,280)   (21,873)
Other comprehensive income / (loss):               
Foreign currency translation adjustments   (3,428)   1,010    1,198 
Total other comprehensive income / (loss)   (3,428)   1,010    1,198 
Comprehensive loss   (798)   (7,270)   (20,675)
Comprehensive loss attributable to noncontrolling interest   -    (477)   (2,691)
Comprehensive loss attributable to Daqo New Energy Corp. shareholders  $(798)  $(6,793)  $(17,984)
                
Income / (loss) per ADS               
Basic   0.38    (1.16)   (2.70)
Diluted   0.37    (1.16)   (2.70)
Weighted average ADS outstanding               
Basic   6,937,114    6,937,060    6,915,097 
Diluted   7,060,443    6,937,060    6,915,097 

 

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Daqo New Energy Corp.

Unaudited Consolidated Balance Sheet

(US dollars in thousands)

 

   Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
             
ASSETS:            
Current Assets:            
Cash and cash equivalents  $8,702   $7,831   $5,539 
Restricted cash   15,468    8,826    6,147 
Accounts receivable, net   5,114    9,910    19,305 
Note Receivable   34,042    15,930    13,907 
Prepaid expenses and other current assets   18,534    23,871    24,265 
Advances to suppliers   4,320    861    1,820 
Inventories   12,371    10,500    19,305 
Amount due from related party   11,323    13,416    6,944 
Deferred tax assets-current   -    -    360 
Total current assets   109,874    91,145    97,592 
Property, plant and equipment, net   475,850    488,504    673,499 
Prepaid land use right   29,428    30,377    36,105 
Deferred tax assets   -    -    1,061 
Other non-current assets   169    174    ,4,633 
TOTAL ASSETS   615,321    610,200    812,890 
                
                
Current liabilities:               
Short-term borrowings, including current portion of long-term borrowings   135,290    118,871    122,834 
Accounts payable   17,396    17,695    13,544 
Note payable   25,843    1,573    10,671 
Advances from customers   10,842    13,218    29,439 
Payables for purchases of property, plant and equipment   45,708    51,767    48,737 
Accrued expenses and other current liabilities   6,217    7,462    6,560 
Amount due to related party   78,164    88,538    54,160 
 Income tax payable   -    -    161 
Total current liabilities   319,460    299,124    286,106 
                
Long-term borrowings   124,912    134,870    178,652 
Advance from customers – long term portion   6,877    11,924    - 
Payables for Purchases of Property, Plant and Equipment   -    -    1,131 
Other long Term Liabilities   26,915    26,955    26,453 
TOTAL LIABILITIES   478,164    472,873    492,342 
                
EQUITY:          
                
Ordinary shares   17    17    17 
Treasury stock   (398)   (398)   (495)
Additional paid-in capital   147,304    146,676    145,101 
Retained earnings (accumulated losses)   (30,037)   (32,667)   19,612 
Accumulated other comprehensive income   20,271    23,699    20,232 
Total Daqo New Energy Corp.’s shareholders’ equity   137,157    137,327    184,467 
                
Noncontrolling interest   -    -    136,081 
Total equity   137,157    137,327,    320,548 
                
TOTAL LIABILITIES & EQUITY   615,321    610,200    812,890 

 

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Daqo New Energy Corp.

Unaudited Consolidated Statements of Cash Flows

(US dollars in thousands)

 

   For the three months ended March 31, 
   2014   2013 
Operating Activities:        
Net income / (loss)   2,630    (21,873)
Adjustments to reconcile net loss to net cash used in operating activities:          
Share-based compensation   628    345 
Inventory write-down   -    (170)
Allowance / (reversal) for doubtful accounts   (1,837)   870 
Depreciation of property, plant and equipment   7,060    14,219 
           
Changes in operating assets and liabilities:          
Accounts receivables   6,633    7,730 
Notes receivables   (18,112)   (9,231)
Prepaid expenses and other current assets   5,336    (239)
Advances to suppliers   (3,460)   (1,076)
Inventories   (1,871)   (3,930)
Amount due from related parties   2,093    (356)
Amount due to related parties   (97)   - 
Prepaid land use rights   949    190 
Other non-current assets   5    71 
Accounts payable   (299)   1,146 
Notes payable   24,268    (10,713)
Accrued expenses and other current liabilities   (1,245)   (1,083)
Advances from customers   (7,423)   (69)
Deferred government subsidies   (39)   (120)
Net cash provided by (used in) operating activities   15,219    (24,289)
           
Investing activities:          
Purchases of property, plant and equipment   (4,398)   (4,165)
(Increase) / decrease in restricted cash   (6,642)   4,531 
Net cash (used in) provided by investing activities   (11,040)   366 
           
Financing activities:          
Proceeds from related parties loans   46,438    30,274 
Repayment of related parties loans   (56,714)   - 
Proceeds from other bank borrowings   6,462    - 
Proceeds from short-term bank borrowings   11,475    19,009 
Repayment of bank borrowings   (11,475)   (26,478)
Net cash (used in) provided by financing activities   (3,814)   22,805 
Effect of exchange rate changes   506    (22)
Net increase (decrease) in cash and cash equivalents   871    (1,140)
Cash and cash equivalents at the beginning of the period   7,831    6,679 
Cash and cash equivalents at the end of the period   8,702    5,539 

 

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Daqo New Energy Corp.

Reconciliation of non-GAAP financial measures to comparable US GAAP measures

(US dollars in thousands)

 

   Three months Ended 
   Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
             
Gross profit / (loss)   9,023    958    (12,891)
Costs related to the Chongqing polysilicon operations   3,683    5,931    9,660 
Non-GAAP gross profit / (loss)   12,706    6,889    (3,231)

 

 

   Three months Ended 
   Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
             
Gross margin   21.4%   2.6%   (89.0%)
Costs related to the Chongqing polysilicon operations (proportion of revenue)   8.8%   15.9%   66.7%
Non-GAAP gross margin   30.2%   18.5%   (22.3%)

 

 

   Three months Ended 
   Mar 31, 2014   Dec 31, 2013   Mar 31, 2013 
             
Net income / (loss)   2,630    (8,280)   (21,873)
Income tax expense   -    60    - 
Interest expense   4,112    4,199    5,278 
Interest income   (120)   (49)   (25)
Depreciation   7,060    12,166    14,219 
EBITDA (non-GAAP)   13,682    8,096    (2,401)
EBIDTA margin (non-GAAP)   32.5%   21.9%   (16.6%)

 

For further information, please contact:

 

Daqo New Energy Corp.

Kevin He, Investor Relations

Phone: +86-23-6486-6556

Email: Kevin.he@daqo.com

SOURCE: Daqo New Energy Corp.

 

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