Daqo New Energy’s 2021 Financial Results

Chinese Polysilicon Maker’s 2021 Net Income Improved 485.3% YoY; Exceeded Production Guidance

Daqo New Energy’s 2021 Financial Results

During Q4/2021, Daqo New Energy sold 11,642 MT for an ASP of $33.91 per kg, up from $27.55 per kg in Q3/2021. The company locked in revenues of $395.5 million. (Source: Daqo New Energy)

  • Daqo’s 2021 financials rode strongly on high polysilicon prices with it reporting over 485% increase in annual net income at $756.2 million
  • It sold 75,356 MT polysilicon with revenues adding up to $1,678.8 million during the year with gross margin of 65.4% over 34.6% in 2020
  • In Q4/2021, high cost of silicon powder pushed up the company’s production cost which it passed on to downstream customers
  • Phase 4B is now operational and the management said it plans to expand to silicon powder production in Inner Mongolia in the future, to enhance its cost structure and improve supply chain stability

Polysilicon producer Daqo New Energy delivered a strong financial year in 2021 with the Chinese company reporting a 485.3% annual increase in net income at $756.2 million thanks to high solar energy demand and higher polysilicon prices, as per its unaudited financial results.

Earlier this year, Daqo’s principal operating subsidiary Xinjiang Daqo New Energy issued a profit alert anticipating over 400% annual increase in net profit for 2021 (see 2021 Profit Alert For Daqo New Energy).

The company produced 86,587 metric ton (MT) of polysilicon during the reporting year reflecting 12% increase over that produced in 2020, exceeding its guidance of 83,000 MT to 85,000 MT for the period (see Daqo Releases Q3/2021 Financial Results).

During 2021, it sold 75,356 MT polysilicon with revenues adding up to $1,678.8 million, compared to $675.6 million a year back, and gross margin was 65.4% over 34.6% in 2020.


Things were not that rosy in the last quarter of 2021 when the production cost went up from $6.84 per kg over a quarter to $14.11 per kg. This was mainly due to the increase in cost of raw material of silicon powder that went up from $2.58 per kg in Q3/2021 to $8.68 per kg in the reporting quarter. However, it passed on the cost increase to downstream customers. Currently, the market price of silicon powder has settled to around $3.5 per kg to $3.6 per kg and Daqo expects it to further come down in Q1/2022.

“End of year seasonality impact combined with downstream inventory adjustments led to a temporary reduction in demand, when our customers in the wafer sector reduced their own raw material and product inventory levels and temporarily lowered their utilization rate,” added company CEO Longgen Zhang.

In Q4/2021, it produced 23,616 MT polysilicon for an average total production cost of $14.11 per kg, that increased from $6.84 per kg in the previous quarter. It sold 11,642 MT for an ASP of $33.91 per kg, up from $27.55 per kg in Q3/2021. The company locked in revenues of $395.5 million.

Management expects things to resume to normal ‘once the solar value chain achieves a new balance when the market demand bounces back’.

Production plans

Daqo’s Phase 4B facility is now up and running with the company having produced around 1,111 MT in December 2021 and 2,825 MT in January 2022. During Q1/2022, it targets to produce 9,500 MT from this facility.

In January 2022, the polysilicon producer announced plans to expand its polysilicon capacity for solar by another 200,000 MT in Baotou in Inner Mongolia of China through Xinjiang Daqo with phase I having 100,000 MT. It was planned to enter construction in Q1/2022. Management said the project is to enter construction in March 2022 and complete by Q2/2023-end.

“We also plan to expand to silicon powder production in Inner Mongolia in the future, which will allow us to further enhance our cost structure and improve our supply chain stability,” added Zhang.


The company expects to produce between 31,000 MT to 32,000 MT polysilicon during Q1/2022 and for the full year 2022 the guidance is for 120,000 MT and 125,000 MT, inclusive of the impact of its annual facility maintenance.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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