69.86% Drop! Daqo Disclose Financial Report 2023

PVTIME – On 29 March 2024, Xinjiang Daqo New Energy Co., Ltd.(Daqo, 688303.SH) disclosed a reduction in its 2023 financial report.

Daqo’s total operating revenue for FY2023 was RMB16,329,081,500 (approximately US$2.257 billion), a decrease of 47.22% year on year. And the net profit attributable to the shareholders of the listed companies was approximately RMB5,762,696,200 (approximately US$796 million), a decrease of 69.86% from the previous year.

The main reason for the change in results was the sharp decline in product prices due to the intense competition among upstream silicon material manufacturers triggered by overcapacity in 2023, Daqo said. The PV industry was in the midst of an adjustment, and although silicon material prices increased moderately, they remained low overall. During the reporting period, Daqo’s efforts to increase sales and reduce costs could not offset the significant year-on-year decline in results due to the decline in polysilicon prices.

As a major producer of polysilicon materials, Daqo has been committed to producing high quality, low energy, low cost and high purity polysilicon for more than ten years and currently has an annual production capacity of 205,000 tonnes of polysilicon. Daqo is very pleased that its production capacity has been fully utilised and sold out in 2023 gradually. For example, the first phase of the 100,000-tonne polysilicon plant in Baotou City, Inner Mongolia, China, a new expansion of the production line, was completed on schedule and successfully reached production in the second quarter of 2023, producing 197,831.25 tonnes of high-purity polysilicon, after which Daqo achieved annual sales of 200,002.29 tonnes, an increase over the same period last year. At the same time, as downstream customers’ demand for n-type silicon material increased significantly, the proportion of n-type silicon material production in December was nearly 60%. In addition, costs have been steadily decreasing in FY2023.