Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2020 Results

PVTIME - Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced its unaudited financial results for the fourth quarter and fiscal year of 2020.

Fourth Quarter 2020 Financial and Operating Highlights

  • Polysilicon production volume was 21,008 MT in Q4 2020, compared to 18,406 MT in Q3 2020
  • Polysilicon sales volume was 23,186 MT in Q4 2020, compared to 13,643 MT in Q3 2020
  • Polysilicon average total production cost(1) was $5.92/kg in Q4 2020, compared to $5.82/kg in Q3 2020
  • Polysilicon average cash cost(1) was $5.04/kg in Q4 2020, compared to $4.88/kg in Q3 2020
  • Polysilicon average selling price (ASP) was $10.79/kg in Q4 2020, compared to $9.13/kg in Q3 2020
  • Revenue was $247.7 million in Q4 2020, compared to $125.5 million in Q3 2020
  • Gross profit was $109.5 million in Q4 2020, compared to $45.3 million in Q3 2020. Gross margin was 44.2% in Q4 2020, compared to 36.0% in Q3 2020
  • Net income attributable to Daqo New Energy Corp. shareholders was $72.8 million in Q4 2020, compared to $20.8 million in Q3 2020
  • Earnings per basic American Depositary Share (ADS)(3) was $1.01 in Q4 2020, compared to $0.29 in Q3 2020
  • EBITDA (non-GAAP)(2) was $115.1 million in Q4 2020, compared to $51.6 million in Q3 2020. EBITDA margin (non-GAAP)(2) was 46.5% in Q4 2020, compared to 41.1% in Q3 2020
  • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $77.3 million in Q4 2020, compared to $25.2 million in Q3 2020
  • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $1.07 in Q4 2020, compared to $0.35 in Q3 2020

Three months ended

US$ millions

except as indicated otherwise

Dec 31,
2020

Sep 30,
2020

Dec 31,
2019

Revenues

247.7

125.5

118.9

Gross profit

109.5

45.3

35.1

Gross margin

44.2%

36.0%

29.5%

Income from operations

98.0

33.3

30.1

Net income attributable to Daqo New Energy Corp.
shareholders

72.8

20.8

20.1

Earnings per basic ADS(3) ($ per ADS)

1.01

0.29

0.29

Adjusted net income (non-GAAP)(2) attributable to
Daqo New Energy Corp. shareholders

77.3

25.2

24.5

Adjusted earnings per basic ADS(3) (non-GAAP)(2)
($ per ADS) 

1.07

0.35

0.35

EBITDA (non-GAAP)(2) 

115.1

51.6

45.4

EBITDA margin (non-GAAP)(2)

46.5%

41.1%

38.2%

Polysilicon sales volume (MT) 

23,186

13,643

13,291

Polysilicon average total production cost ($/kg)(1)

5.92

5.82

6.38

Polysilicon average cash cost (excl. dep'n) ($/kg)(1)

5.04

4.88

5.47

Full Year 2020 Financial and Operating Highlights

  • Polysilicon production volume was 77,288 MT in 2020, compared to 41,556 MT in 2019
  • Polysilicon sales volume was 74,812 MT in 2020, compared to 38,110 MT in 2019
  • Revenue was $675.6 million in 2020, compared to $350.0 million in 2019
  • Gross profit was $234.0 million in 2020, compared to $80.1 million in 2019. Gross margin was 34.6% in 2020, compared to 22.9% in 2019
  • EBITDA (non-GAAP)(2) was $256.5 million in 2020, compared to $95.3 million in 2019
  • EBITDA margin (non-GAAP)(2) was 38.0% in 2020, compared to 27.2% in 2019
  • Net income attributable to Daqo New Energy Corp. shareholders was $129.2 million in 2020, compared to $29.5 million in 2019
  • Earnings per basic ADS was $1.82 in 2020, compared to $0.43 in 2019
  • Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $147.1 million in 2020, compared to $47.4 million in 2019
  • Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $2.07 in 2020, compared to $0.70 in 2019

 

Notes:

(1) Production cost and cash cost only refer to production in our Xinjiang polysilicon facilities. Production cost is calculated by the
inventoriable costs relating to production of polysilicon in Xinjiang divided by the production volume in the period indicated. Cash cost
is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation expense, divided by the production
volume in the period indicated.

(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and
adjusted earnings per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For
more information on these non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures"
and the tables captioned "Reconciliation of non-GAAP financial measures to comparable US GAAP measures" set forth at the end of
this press release.

(3) ADS means American Depositary Share. On November 17, 2020, the Company effected a change of the ratio of its ADSs to ordinary
shares from one (1) ADS representing twenty-five (25) ordinary shares to one (1) ADS representing five (5) ordinary shares. The
earnings per ADS and number of ADS information has been retrospectively adjusted to reflect the change for all periods presented.

Management Remarks

Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We are very pleased to report a strong quarter in terms of operational and financial results to bring a successful close of the year 2020. I would like to thank our entire team for their hard work, commitment and dedication in achieving these excellent results. During the quarter we produced 21,008 MT of polysilicon, a record-high in our company's history. Our production cost was reduced by 2.7% in RMB terms, primarily due to our efforts in additional energy savings, offset by a higher than expected rise in the cost of silicon raw material in the fourth quarter. The increase in our cost in US dollar terms compared to the third quarter was the result of exchange rate fluctuations due to the RMB appreciation. In 2021, we will continue our efforts to reduce cost, as we begin to benefit from our newly implemented digital manufacturing system to maximize our output, optimize our production process and further improve our operational stability and product quality."

"During the months of November and December 2020, we saw significant pick-up in polysilicon demand from our customers to meet their increasing production needs to serve the growing solar end-market. During the fourth quarter, we sold 23,186 MT of polysilicon, which is the highest quarterly sales volume the company ever achieved. Since the beginning of 2021, we continue to see rising polysilicon market prices, and most recently market poly ASP has reached a range of $15/kg to $16/kg. As our mono-wafer customers continue their capacity expansion plans supported by robust downstream market demand, we believe that the supply of polysilicon will continue to be very tight throughout the year given very limited additional polysilicon supply this year."

"Regarding the status of the proposed initial public offering of our Xinjiang Daqo subsidiary on China's STAR market, the stock listing committee of the Shanghai Stock Exchange STAR Market reviewed Xinjiang Daqo's application in February 2021 and determined that Xinjiang Daqo had already met the offering, listing and disclosure requirements related to its potential STAR Market IPO. As a next step, Xinjiang Daqo will need to go through the registration process with the China Securities Regulatory Commission before its STAR Market IPO can take place. The proceeds of this potential IPO will be used to fund our Phase 4B polysilicon project with an annual capacity of 35,000 MT. We have already started the preparation works for Phase 4B including the design and procurement process. We plan to start the construction in mid-March and expect to complete the project by the end of 2021 and ramp it up to full capacity by the end of Q1 2022."

"I have been in the solar industry for over a decade, and the prospects for the solar industry have never been brighter. Driven by the dual trends of solar grid parity and the urgent need to address climate change, the industry is on the cusp of undergoing tremendous growth over the next few years without the need for government subsidies. Solar energy is now one of the most competitive form of power generation even compared to fossil fuel, and we are beginning to see real world applications where solar is the optimal choice to meet growing energy needs and to replace legacy carbon-based generation. Major economies around the world have also begun to implement ambitious policies and initiatives to support and mandate the use of renewable energy for power generation. The European Union has announced its Green Deal to fight climate change through progressive policies for a climate-neutral and sustainable EU with the goal of no net emissions of greenhouse gases by 2050 and to de-carbonize the energy sector. Over the next few years, the European Climate Law is expected to turn this political commitment into a legal obligation. In China, President Xi Jinping has announced China will aim to hit peak emissions before 2030 and reach carbon neutrality by 2060 and we expect various government agencies including the NEA and the NDRC to introduce and implement policies to mandate and support the use of renewable energy. For 2021, the NEA has indicated its intention to accelerate the development and deployment of wind and solar energy, with a goal of adding a combined 120GW of wind and solar in 2021. In the U.S., with the Biden administration's commitment to fight climate change and plan for clean energy revolution with the goal of achieving a 100% clean energy economy and reaching net-zero emissions no later than 2050, we believe favorable policies are forthcoming to support renewable energy's growth in the U.S."

"We are standing at the beginning of a new era that will demand more and more clean, renewable and cost effective energy resources among which solar PV is one of the most competitive. We will focus on our core business, continue to expand capacity and further improve quality to better serve the fast growing solar PV market."

Outlook and guidance

The Company expects to produce approximately 19,500MT to 20,500MT of polysilicon and sell approximately 20,000MT to 21,000MT of polysilicon to external customers during the first quarter of 2021. For the full year of 2021, the Company expects to produce approximately 80,000 to 81,000 MT of polysilicon, inclusive of the impact of the Company's annual facility maintenance.

This outlook reflects Daqo New Energy's current and preliminary view as of the date of this press release and may be subject to changes. The Company's ability to achieve these projections is subject to risks and uncertainties. See "Safe Harbor Statement" at the end of this press release.

Fourth Quarter 2020 Results

Revenues

Revenues were $247.7 million, compared to $125.5 million in the third quarter of 2020 and $118.9 million in the fourth quarter of 2019. The increase in revenues was primarily due to higher polysilicon sales volume and higher ASPs.

Gross profit and margin

Gross profit was $109.5 million, compared to $45.3 million in the third quarter of 2020 and $35.1 million in the fourth quarter of 2019. Gross margin was 44.2%, compared to 36% in the third quarter of 2020 and 29.5% in the fourth quarter of 2019. The increase in gross margin was primarily due to higher ASPs.

Selling, general and administrative expenses

Selling, general and administrative expenses were $11.2 million, compared to $9.2 million in the third quarter of 2020 and $9.0 million in the fourth quarter of 2019. The increase was primarily due to an increase in shipping costs as a result of higher sales volume, as well as an increase in personnel cost. SG&A expenses during the quarter included $4.5 million in non-cash share-based compensation costs related to the Company's share incentive plan.

Research and development expenses

Research and development (R&D) expenses were $1.5 million, compared to $1.7 million in the third quarter of 2020 and $1.2 million in the fourth quarter of 2019. Research and development expenses can vary from period to period and reflect R&D activities that take place during the quarter.

Income from operations and operating margin

As a result of the foregoing, income from operations was $98.0 million, compared to $33.3 million in the third quarter of 2020 and $30.1 million in the fourth quarter of 2019.

Operating margin was 39.6%, compared to 26.6% in the third quarter of 2020 and 25.3% in the fourth quarter of 2019.

Interest expense

Interest expense was $8.3 million, compared to $5.4 million in the third quarter of 2020 and $3.9 million in the fourth quarter of 2019. The increase was primarily due to an increase in interest expense for discounted bank notes.

EBITDA (non-GAAP)

EBITDA (non-GAAP) was $115.1 million, compared to $51.6 million in the third quarter of 2020 and $45.4 million in the fourth quarter of 2019. EBITDA margin (non-GAAP) was 46.5%, compared to 41.1% in the third quarter of 2020 and 38.2% in the fourth quarter of 2019.

Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

As a result of the aforementioned, net income attributable to Daqo New Energy Corp. shareholders was $72.8 million, compared to $20.8 million in the third quarter of 2020 and $20.1 million in the fourth quarter of 2019.

Earnings per basic American Depository Share (ADS) was $1.01, compared to $0.29 in the third quarter of 2020, and $0.29 in the fourth quarter of 2019.

Financial Condition

As of December 31, 2020, the Company had $118.4 million in cash and cash equivalents and restricted cash, compared to $109.8 million as of September 30, 2020 and $115.3 million as of December 31, 2019. As of December 31, 2020, the notes receivable balance was $0.2 million, compared to $1.9 million as of September 30, 2020 and $5.6 million as of December 31, 2019. As of December 31, 2020, total borrowings were $193.7 million, of which $123.2 million were long-term borrowings, compared to total borrowings of $271.0 million, including $140.0 million long-term borrowings, as of September 30, 2020 and total borrowings of $280.1 million, including $151.5 million long-term borrowings, as of December 31, 2019.

Cash Flows

For the twelve months ended December 31, 2020, net cash provided by operating activities was $209.7 million, compared to $181.0 million in the same period of 2019.

For the twelve months ended December 31, 2020, net cash used in investing activities was $118.5 million, compared to $261.8 million in the same period of 2019. The net cash used in investing activities in 2020 and 2019 was primarily related to the capital expenditures on the Company's Phase 4A polysilicon projects.

For the twelve months ended December 31, 2020, net cash used in financing activities was $95.5 million, compared to net cash provided by financing activities of $102.3 million in the same period of 2019.

Full Year 2020 Results

Revenues

Revenues were $675.6 million, compared to $350.0 million in 2019. The increase was primarily due to higher polysilicon sales volume and partially offset by slightly lower ASPs.

Gross profit and margin

Gross profit was $234.0 million, compared to $80.1 million in 2019. Gross margin was 34.6%, compared to 22.9% in 2019. The increase was primarily due to lower production cost partially offset by slightly lower ASPs.

Selling, general and administrative expenses

Selling, general and administrative expenses were $39.5 million, compared to $32.9 million in 2019. The increase was primarily due to an increase in shipping costs as a result of higher sales volume, as well as an increase in personnel cost.

Research and development expenses

Research and development (R&D) expenses were $6.9 million, compared to $5.3 million in 2019. Research and development expenses can vary from period to period and reflect R&D activities that took place during the period.

Income from operations and operating margin

As a result of the foregoing, income from operations was $187.9 million, compared to $47.5 million in 2019. Operating margin was 27.8%, compared to 13.6% in 2019.

Interest expense

Interest expense was $26.6 million, compared to $10.4 million in 2019. The increase was primarily due to a decrease of capitalized interest expense.

Income tax expense

Income tax expense was $28.2 million, compared to $9.6 million in 2019. The increase was primarily due to higher income before income taxes.

Net income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

Net income attributable to Daqo New Energy Corp. shareholders was $129.2 million, compared to $29.5 million in 2019. Earnings per basic ADS was $1.82, compared to $0.43 in 2019.

Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $147.1 million, compared to $47.4 million in 2019. Adjusted earnings per basic ADS (non-GAAP) was $2.07, compared to $0.70 in 2019.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company's operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.

The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company's core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income

(US dollars in thousands, except ADS and per ADS data)

 

  Three months Ended Year Ended Dec 31,
    Dec 31, 2020   Sep 30, 2020   Dec 31, 2019   2020   2019  
                       
Revenues   $247,725   $125,529   $118,918   $675,602   $349,991  
Cost of revenues   (138,238)   (80,276)   (83,800)   (441,610)   (269,887)  
Gross profit   109,487   45,253   35,118   233,992   80,104  
Operating expenses                      
Selling, general and administrative expenses    

(11,236)

                   (9,223)    

(8,987)

  (39,472)    

(32,907)

 
Research and development expenses   (1,498)                    (1,746)   (1,206)   (6,856)    

(5,258)

 
Other operating income   1,226   (954)   5,164   191   5,546  
Total operating

(expenses) / income

  (11,508)                    (11,923)   (5,029)   (46,137)   (32,619)  
Income from operations   97,979   33,330   30,089   187,855   47,485  
Interest expense   (8,254)   (5,438)   (3,936)   (26,632)   (10,397)  
Interest income   187   200   208   907   983  
Foreign exchange gain / (loss)   -   -   4   0   (185)  
Income before income taxes   89,912   28,092   26,365   162,130   37,886  
Income tax expense   (13,606)   (6,193)   (5,972)   (28,182)   (9,623)  
Net income from continuing operations   76,306   21,899    

20,393

  133,948    

28,263

 
Net (loss) / income from discontinued operations   -   -    

(306)

  (141)    

1,261

 
Net income   76,306   21,899   20,087   133,807   29,524  
Net (loss) / income attributable to non-controlling interest              3,480                     1,142    

(1)

               4,612    

(1)

 
Net income attributable to Daqo New Energy Corp. shareholders   $72,826                    $20,757   $20,088   $129,195   $29,525  
                       
Net income   76,306   21,899   20,087   133,807   29,524  
Other comprehensive income / (loss):                      
Foreign currency translation adjustments   31,107   25,937   13,892   48,438    

(6,702)

 
Total other comprehensive income / (loss)   31,107                    25,937   13,892   48,438    

(6,702)

 
Comprehensive income / (loss)   107,413   47,836   33,979   182,245   22,822  
Comprehensive income attributable to non-controlling interest              5,698                      1,163   2   6,845   2  
Comprehensive income / (loss) attributable to Daqo New Energy Corp. shareholders    

 

$101,715

   

 

$46,673

   

 

$33,977

   

 

$175,400

   

 

$22,820

 
                       
Earnings / (Loss) per ADS                      
-Continuing operations   1.01   0.29   0.29   1.82   0.41  
-Discontinued operations   0.00   0.00   0.00   0.00   0.02  
Basic   1.01   0.29   0.29   1.82   0.43
                     
-Continuing operations   0.96   0.27   0.26   1.72   0.39  
-Discontinued operations   0.00   0.00   0.00   0.00   0.02  
Diluted   0.96   0.27   0.26   1.72   0.41  
                       
Weighted average ADS outstanding                      
Basic   72,147,808   71,281,184   69,186,250   71,017,403   67,914,211  
Diluted   76,065,033   76,626,371   75,927,961   75,003,430   71,466,701  

 

 

Daqo New Energy Corp.

Unaudited Consolidated Balance Sheets

(US dollars in thousands)

    Dec 31, 2020   Sep 30, 2020   Dec 31, 2019  
             
ASSETS:              
Current Assets:              
Cash and cash equivalents   76,596   70,150   $51,840  
Restricted cash   41,808   39,640   62,609  
Accounts receivable, net   -   42   13  
Notes receivable   153   1,908   5,644  
Prepaid expenses and other current assets   11,477   12,972    

15,344

 
Advances to suppliers   7,949   1,229   1,544  
Inventories   42,159   53,640   36,391  
Amount due from related parties   129   213   17  
Current assets associated with discontinued operation   -   -    

926

 
Total current assets   180,271   179,794   174,328  
Property, plant and equipment, net   1,027,086   987,295   995,027  
Prepaid land use right   30,829   29,815   29,593  
Deferred tax assets   -   1,386   1,352  
Investment in affiliate   685   658   642  
Operating lease right-of-use assets   119   137    

197

 
Other non-current assets   153   147   -  
Non-current asset associated with discontinued operation   -   -    

217

 
TOTAL ASSETS   1,239,143   1,199,232   1,201,356  
             
Current liabilities:              
Short-term borrowings, including current portion of long-term borrowings   70,431   131,064    

 

128,612

 
Accounts payable   18,953   19,739   12,713  
Notes payable   49,355   62,128   101,171  
Advances from customers-short term portion 37,783   17,544   33,028  
Payables for purchases of property, plant and equipment   49,555   76,158   112,538  
Accrued expenses and other current liabilities   30,148   16,616    

12,222

 
Amount due to related parties   5,150   4,820   38,825  
Income tax payable   22,678   7,314   4,789  
Lease liabilities - short term portion   82   78   85  
Current liabilities associated with discontinued operation    

-

   

-

   

1,165

 
Total current liabilities   284,135   335,461   445,148  
Long-term borrowings   123,222   139,967   151,518  
Advance from customers – long term portion   3,265   1,266    

2,154

 
Amount due to related parties - long term portion   4,238   10,897    

7,899

 
Deferred government subsidies   21,907   21,157   21,034  
Deferred Tax Liabilities   3,461   5,647   6,368  
Lease liabilities – long term portion   -   -   77  
TOTAL LIABILITIES   440,228   514,395   634,198  
 

EQUITY:

             
Ordinary shares   37   36   35  
Treasury stock   (1,749)   (1,749)   (1,749)  
Additional paid-in capital   412,450   405,784   387,371  
Accumulated gains   330,118   257,292   200,922  
Accumulated other comprehensive income/(loss)   26,267   (2,622)    

(19,937)

 
Total Daqo New Energy Corp.’s shareholders’ equity   767,123   658,741    

566,642

 
Non-controlling interest   31,792   26,096   516  
Total equity   798,915   684,837   567,158  
TOTAL LIABILITIES & EQUITY   1,239,143   1,199,232   1,201,356  

 

 

Daqo New Energy Corp.

Unaudited Consolidated Statements of Cash Flows

(US dollars in thousands)

 

  For the year ended December 31,
    2020   2019  
Operating Activities:          
Net income   $ 133,807   $ 29,524  
Less: (Loss)/ income from discontinued operations, net of tax   (141)   1,261  
Net income from continuing operations   133,948   28,263  
Adjustments to reconcile net income to net cash provided by operating activities:   90,269   65,644  
Changes in operating assets and liabilities   (14,464)   86,076  
Net cash provided by operating activities-continuing operations   209,753   179,983  
Net cash (used in)/ provided by operation activities-discontinued operations   (50)   1,010  
Net cash provided by operating activities   209,703   180,993  
         
Investing activities:          
Net cash used in investing activities-continuing operations   (118,292)   (263,284)  
Net cash (used in)/ provided by investing activities-discontinuing operations   (195)   1,457  
Net cash used in investing activities   (118,487)   (261,827)  
         
Financing activities:          
Net cash (used in)/ provided by financing activities – continuing operations   (95,470)   104,979  
Net cash used in financing activities – discontinued operations   -   (2,651)  
Net cash (used in)/provided by financing activities   (95,471)   102,328  
 

Non-cash transactions

         
Effect of exchange rate changes   7,364   (1,320)  
Net increase in cash, cash equivalents and restricted cash   3,110   20,174  
Cash, cash equivalents and restricted cash at the beginning of the year   115,294   95,120  
Cash, cash equivalents and restricted cash at the end of the year   118,404   115,294  

 

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.

 

    Dec 31, 2020   Dec 31, 2019
Cash and cash equivalents   76,596   52,685
Restricted cash   41,808   62,609
Total cash, cash equivalents, and restricted cash shown in the

statement of cash flows

  118,404   115,294

 

 

Daqo New Energy Corp.

Reconciliation of non-GAAP financial measures to comparable US GAAP measures

(US dollars in thousands)

 

  Three months Ended Year ended
    Dec. 31, 2020   Sep. 30, 2020   Dec. 31, 2019   Dec. 31, 2020   Dec. 31, 2019
Net income from continuing operations   76,306   21,899    

20,393

  133,948    

28,263

Income tax expense   13,606   6,193   5,972   28,182   9,623
Interest expense   8,254   5,438   3,936   26,632   10,397
Interest income   (187)   (200)   (208)   (907)   (983)
Depreciation & amortization   17,118   18,289   15,281   68,686   48,003
EBITDA (non-GAAP)   115,097   51,619   45,374   256,541   95,303
EBIDTA margin (non-GAAP)   46.5%   41.1%   38.2%   38.0%   27.2%

 

 

  Three months Ended Year ended
    Dec. 31, 2020   Sep. 30, 2020   Dec. 31, 2019   Dec. 31, 2020   Dec. 31, 2019
Net income / (loss) attributable to Daqo New Energy Corp. shareholders   72,826   20,757   20,088   129,195   29,525
Share-based compensation   4,478   4,478   4,461   17,908   17,897
Adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders   77,304   25,235   24,549   147,103   47,422
Adjusted earnings per basic ADS (non-GAAP)    

$1.07

   

$0.35

   

$0.35

   

$2.07

   

$0.70

Adjusted earnings per diluted ADS (non-GAAP)   $1.02   $0.33   $0.32   $1.96   $0.66
Share