Daqo Polysilicon Sales Grew in 2019 As Net Income Dropped

Daqo New Energy Grew Revenue, Production Volume & External Sales During Q4/2019 & 2019; Management Plans To Run Facilities At Full Utilization During Q1/2020
09:31 AM (Beijing Time) - 13. March 2020

Daqo managed to bring down its average production cost for polysilicon during Q4/2019 to very impressive $6.38 per kg and in Q1/2020 it sees it further coming down to $6.1 per kg. (Source: Daqo New Energy)

Key Takeaways

  • Daqo’s Q4/2019 financial results show the company produced its highest quarterly production volumes since 2014
  • Company revenues grew to $118.9 million while EBITDA improved to $45.4 million and adjusted net income was $24.5 million
  • Full year 2019 production volumes grew to 41,556 MT with $350 million in as revenues from 38,110 MT sold externally
  • Company says it will run its facilities at full utilization during Q1/2020 expecting to produce between 18,000 MT to 19,000 MT of polysilicon


Chinese polysilicon manufacturer Daqo New Energy Corp., had a good run during the later part of 2019 as it managed to bring down its polysilicon production cost 8.5% sequentially to impressively record low $6.38 per kg in Q4/2019. It kind of ticked all the right boxes as its higher polysilicon production volume reached 16,204 metric ton (MT), which was the highest quarterly amount produced since Q1/2014. Around 81% of production comprises high-quality mono-grade polysilicon.

The company sold 13,291 MT during the reporting quarter for an ASP of $8.77 per kg and reported revenues of $118.9 million in Q4/2019 compared to $75.6 million a year back in Q4/2018. EBITDA for the quarter improved to $45.4 million and its adjusted net income was $24.5 million.

It also happened to be the quarter when Daqo achieved full ramp up for its Xinjiang facility to 70,000 MT under Phase 4A. “Based on our current estimates, we expect to run our facilities at full utilization and produce approximately 18,000 MT to 19,000 MT of polysilicon during the first quarter of 2020. We are also making progress in further cost reduction by improving operational efficiency and reducing energy consumption,” stated the management. “As such, we expect our production costs to be reduced to approximately $6.10/kg in the first quarter of 2020. At the same time, we will continue to improve product quality and expect mono-grade polysilicon products to account for approximately 90% of our sales volume during the first quarter of 2020.”


Adding up production volumes during the year the total amount of polysilicon Daqo produced in 2019 was 41,556 MT compared to 23,351 MT in 2018. Selling 38,110 MT externally brought in $350 million in revenues from continuing operations, growing from $301.6 million in 2018.

On an annual basis, the company’s non-GAAP EBITDA was $95.3 million down from $120.4 million a year back. Its net income was $29.5 million, dropping down from $38.1 million in 2018.


For Q1/2020, the management has guided for 18,000 MT to 19,000 MT of polysilicon production of which the Daqo plans to sell 17,500 MT to 18,500 MT. It expects to bring down its production cost during this quarter to $6.1 per kg. For full year 2020 the production guidance is around 73,000 MT to 75,000 MT which is inclusive of the impact of annual facility maintenance.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani