Daqo New Energy reports Q3 adjusted EPS 59c vs. $7.81 last year

Reports Q3 revenue $484.8M vs. $1.22B last year. Xiang Xu, CEO, commented, “During Q3, continued optimization of operations at our two polysilicon facilities resulted in a total production volume of 57,664 MT, an increase of 12,358 MT or 27% compared to the previous quarter.,,Meanwhile, our production cost further decreased by 5.8% from Q2 to $6.52/kg, primarily due to improvements in manufacturing efficiency, as well as a reduction in the cost of raw materials, particularly metallurgical-grade silicon…we expect our Q4 cost to continue to trend downwards from the Q3 levels. We shipped 62,967 MT of polysilicon in Q3, an increase of 9,465 MT over our Q2 shipments, and significantly higher than our quarterly production volume…At the end of Q3, the company had a cash balance of $3.3B and a combined cash and bank note receivable balance of $3.6B…Full year production is expected to be approximately 196,000 MT to 199,000 MT, representing an increase of 46% to 49% compared to 2022…Going into Q4, production volumes in the polysilicon sector are likely to increase marginally as some new capacities come online. During Q3, we saw an acceleration in the transition from P-type to N-type cell technology with strong growth in N-type product demand volume and the N-type products’ ASP premium expanded to RMB 10-12/kg in Q3. Going forward, we expect this transition to further accelerate as N-type products expand market share, leading to continued demand growth.”