Cut it in half! Net profit of Daqo Energy plunged 53.56% in the first half of the year.

On the afternoon of August

3, Daqo Energy released its financial report for the first half of 2023. During the reporting period, the company achieved revenue of 9.325 billion yuan, down 42.93% year-on-year; net profit attributable to parent company of 4.426 billion yuan, down 53.53% year-on-year; net profit deducted from non-profits of 4.425 billion yuan, down 53.56% year-on-year. Basic earnings per share was 2.07, representing a decrease of 58.1% over the same period of last year.

Compared with the same period last year, the impact of the sharp fall in silicon prices was far greater than previously estimated, and Daquan's net profit was cut in half.

In response to the sharp decline in performance, Daquan said that in the first half of 2023, the impact of cyclical inventory consumption and the release of new production capacity in the industry led to a substantial increase in domestic polysilicon supply, which led to a rapid decline in polysilicon prices. During the reporting period, the company continued to increase sales efforts and actively digest product inventory, of which the Xinjiang base basically achieved full sales, but due to the decline in polysilicon prices , the company's performance declined significantly compared with the same period last year.

Daquan disclosed that in the first half of the year, the company's unit sales prices of silicon materials in the first and second quarters were 190.42 yuan/kg and 86.35 yuan/kg, respectively, down 43.44% from the same period last year. Compared with the first quarter, the unit price of the company's silicon materials plunged 54.65% in the second quarter.

The company's current polysilicon production capacity is 205 thousand tons per year. In terms of output, the output of the Company in the first half of the year was 79,200 tons. According to the data of China Photovoltaic Industry Association, the domestic polysilicon output in the first half of 2023 was about 651,700 tons, accounting for 12.15% of the total, and the scale was in the first echelon in the industry.

In the second half of the year, the company will complete the routine annual maintenance by stages. It is estimated that the output in the third quarter will be 55,000-57,000 tons, and the annual output will be 193,000-198,000 tons. In the first half of

2023, the production of the Company was stable, the production of Inner Mongolia Phase I 100,000-ton high-purity polysilicon project was increased smoothly, and the output of polysilicon was 7.92 Million tons, achieving sales volume & nbsp; 76,800 tons.

At the same time, the product quality is maintained at a high level, the proportion of monocrystalline silicon wafer materials is more than 99%, and the batch sales of N-type high-purity silicon materials have been realized.

For the second half of the year, the company will continue to be optimistic about N-type polysilicon materials. With the industry's transition to next-generation N-type technology, the sales premium of N-type polysilicon has expanded and the demand has also increased significantly. The company expects that this trend will also contribute new profit growth points to the company.