PVTIME – On 28 February 2024, Xinjiang Daqo New Energy Co., Ltd.(Daqo, 688303.SH) announced a reduction in its preliminary earnings estimate for 2023.
Daqo’s total operating revenue for FY2023 is estimated to be approximately RMB16.329 billion (approximately US$2.27 billion), a decrease of 47.22% from the previous year. And its net profit attributable to shareholders of listed companies will be approximately RMB5.763 billion, a decrease of 69.86% year on year (approximately US$801 million).
The main reason for the change in results was the sharp decline in product prices due to intense competition among upstream silicon material manufacturers triggered by overcapacity in 2023, Daqo said. The PV industry was in the midst of an adjustment, and although silicon material prices increased moderately, they remained low overall. During the reporting period, Daqo’s efforts to increase sales and reduce costs could not offset the significant year-on-year decline in results due to the decline in polysilicon prices.
On the other hand, production capacity was fully utilised and sold out. For example, the first phase of the 100,000-tonne polysilicon plant in Baotou City, Inner Mongolia, China, a new expansion of the production line, was completed on schedule and successfully reached production in the second quarter of 2023, generating production of 197,831.25 tonnes of high-purity polysilicon, then Daqo achieved annual sales of 200,002.29 tonnes, an increase over the same period last year. At the same time, as downstream customers’ demand for n-type silicon material increased significantly, the proportion of n-type silicon material production in December was nearly 60%. In addition, costs have been steadily decreasing in FY2023.
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