Daqin New Energy (DQ.US) Q4 revenue fell 44.8% year-on-year, with an expected annual production capacity of up to 300,000 tons of polycrystalline silicon.

Before the market opened on Wednesday, Daqo New Energy (DQ.US) announced its financial results for the fourth quarter and full year of 2023. The financial report showed that Daqo New Energy's Q4 revenue was $477 million, down 44.8% from $864 million in the same period last year; net profit attributable to the company's shareholders was $44.9 million, compared to $333 million in the same period last year; earnings per ADS were $0.64, compared to $4.26 in the same period last year. Adjusted net profit attributable to the company's shareholders was $66 million, compared to $363 million in the same period last year; adjusted earnings per ADS were $0.94, compared to $4.65 in the same period last year. Compared to the third quarter of 2023, the decrease in revenue was mainly due to a decrease in sales volume, which was offset by an increase in average selling price (ASP). The fourth quarter polysilicon production volume was 61,014 tons, compared to 57,664 tons in the previous quarter; sales volume was 59,906 tons, compared to 63,263 tons in the previous quarter. The average total production cost of polysilicon was $6.50 per kilogram, compared to $6.52 per kilogram in the previous quarter; the average cash cost of polysilicon was $5.72 per kilogram, compared to $5.67 per kilogram in the previous quarter. ASP was $7.97 per kilogram, compared to $7.68 per kilogram in the previous quarter. In terms of annual performance, the company's revenue for the year was $2.309 billion, compared to $4.608 billion in the same period last year; net profit attributable to the company's shareholders was $421 million, compared to $1.82 billion in the same period last year; earnings per ADS were $5.64, compared to $24.00 in the same period last year. Looking ahead, the company expects to produce approximately 60,000 to 62,000 tons of polysilicon in the first quarter of 2024. It is expected to produce approximately 280,000 to 300,000 tons of polysilicon in the full year of 2024, including the impact of annual facility maintenance. After the financial report was released, as of the time of writing, the stock was up 3.90% in pre-market trading.