Q1 2026 Daqo New Energy Corp Earnings Call Transcript
Key Points
- Daqo New Energy Corp (DQ) maintains a robust and healthy balance sheet with zero debt, providing strategic flexibility.
- The company holds a significant cash balance of USD559.4 million and total assets convertible to cash of USD2 billion, ensuring ample liquidity.
- Production volume exceeded guidance, with 43,402 metric tons produced against a guidance range of 35,000 to 40,000 metric tons.
- Despite market challenges, Daqo New Energy Corp (DQ) increased its average selling price by 2.3% sequentially to USD5.96 per kilogram.
- The company is well-positioned to capitalize on anticipated market recovery and long-term growth opportunities due to its low-cost production and high-quality N-type polysilicon.
- Daqo New Energy Corp (DQ) reported a significant decrease in revenue to $26.7 million from $221.7 million in the previous quarter.
- The company experienced a gross loss of $139.4 million, with a negative gross margin of 521%, primarily due to inventory impairment provisions.
- Net loss attributable to shareholders was $88.4 million, a substantial increase from $7.3 million in the previous quarter.
- The company's utilization rate was approximately 57%, reflecting challenging market conditions and weak selling prices.
- Polysilicon prices fell below production costs, leading to a drop in sales volume to 4,482 metric tons.
Good day, and welcome to the Daqo New Energy first quarter 2026 results conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Jessie Zhao, Director of Investor Relations. Please go ahead.
Hello, everyone. I'm Jessie Zhao, the Investor Relations Director of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the first quarter of 2026, which can be found on our website at www.dqsolar.com.
Today, attending the conference call, we have our Deputy CEO, Ms. Anita Zhu; our CFO, Mr. Ming Yang; and myself. Our Chairman and CEO, Mr. Xiang Xu, is on the business stream now. So Ms. Anita Zhu will deliver our management remarks on behalf of Mr. Xiang Xu. Today's call will begin with an update from Ms. Zhu on market conditions and company operations, and then Mr. Yang will discuss the
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