Daqo New Energy: Production costs in Q1 2023 to be Stable

On February 28, Daqo New Energy (DQ.US) announced its financial results for the fourth quarter and full year of 2022. Data show that the company’s revenue in the fourth quarter of 2022 was $864.3 million, while in the same period last year, then data was $585.8 million, down 29% QoQ and up 118.5% YoY. The net profit attributable to shareholders of the company was $373 million, an increase of 15.5% from the previous quarter; the basic income per ADS was $4.78, which rose slightly from $4.28 in the previous quarter. Gross profit was $669 million, down 31.6% quarter-on-quarter; gross profit margin was 77.4%, which stood at 80.2% in the previous quarter.

The financial report shows that the company's polysilicon production in the fourth quarter was 33,702 mt, an increase of 0.90% from the previous quarter; sales volume was 23,400 mt, a decrease of 29.36% from the previous quarter.

Daqo New Energy expects to produce 31,000-32,000 mt of polysilicon in the first quarter of 2023. Considering the impact of annual production line maintenance, it is estimated that the annual polysilicon output in 2023 will be 190,000-195,000 mt.