PVTIME – Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”) announced that its subsidiary Xinjiang Daqo New Energy (“Xinjiang Daqo”) had provided estimates of its revenue and net profit in 2020 to the Shanghai Stock Exchange upon its request during the process of Xinjiang Daqo’s application for an initial public offering (“IPO”) on the Shanghai Stock Exchange’s Sci-Tech innovation board.
Xinjiang Daqo estimates that under PRC GAAP its revenue in 2020 would be in the range of RMB4.5~4.7 billion and its net profit attributable to Xinjiang Daqo’s shareholders in 2020 would be in the range of RMB0.95~1.05 billion. The financial estimates were prepared based on Xinjiang Daqo’s audited consolidated results for the nine months ended September 30, 2020, and Xinjiang Daqo’s estimates of its consolidated results for the fourth quarter of 2020 in accordance with PRC GAAP.
Daqo New Energy currently beneficially owns 95.6% of Xinjiang Daqo and a majority of the Company’s revenue and net income are contributed by Xinjiang Daqo. The financial estimates described in this press release were prepared solely for Xinjiang Daqo in RMB in accordance with PRC GAAP and subject to change upon completion of Xinjiang Daqo’s internal financial closing and reporting process, which are different from the Company’s consolidated financial results in U.S. dollars under U.S. GAAP for the year ended December 31, 2020.
The financial estimates described in this press release are based solely on the information currently available to Xinjiang Daqo’s management. Its actual results could vary materially from these preliminary estimates. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided. These preliminary revenue and net profit estimates should not be viewed as a substitute for full financial statements of Xinjiang Daqo prepared in accordance with PRC GAAP. In addition, these preliminary estimates are not necessarily indicative of the results to be achieved by Xinjiang Daqo in any future period.
The Company also takes this opportunity to update its guidance for 2020 as follows. The Company expects the production volume in Q4 2020 and the full year of 2020 to be in the range of 20,500~21,000 MT and 76,700~77,200 MT, respectively. Sales volume for Q4 2020 and the full year of 2020 are expected to be in the range of 23,000~23,200 MT and 74,700~74,900 MT, respectively.