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Daqo New Energy (NYSE:DQ) reports significant losses in Q2 2024

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Daqo New Energy Corp. (NYSE:DQ), a prominent player in the global solar PV industry specializing in high-purity polysilicon, today released its unaudited financial results for the second quarter of 2024, revealing a sharp downturn in its financial performance.

For Q2 2024, the company reported revenue of $219.9 million, a substantial decrease from the $415.3 million recorded in the previous quarter.

This downturn was accompanied by a gross loss of $159.2 million, a stark contrast to the gross profit of $72.1 million reported in Q1 2024.

During the quarter, net losses attributable to shareholders intensified to $119.8 million in the second quarter, down from a net income of $15.5 million in Q1 2024.

This resulted in a loss per basic American Depositary Share (ADS) of $1.81, compared to earnings of $0.24 per basic ADS in the prior quarter.

Despite a slight increase in polysilicon production volume, from 62,278 metric tons (MT) in Q1 to 64,961 MT in Q2, sales volume dropped from 53,987 MT to 43,082 MT.

Additionally, the average total production cost of polysilicon saw a minor decrease to $6.19/kg from $6.37/kg.

Meanwhile, the company also reported a negative EBITDA (non-GAAP) of -$144.9 million for the quarter, a significant downturn from the positive $76.9 million EBITDA recorded in Q1 2024.

After the earnings announcement, Daqo's stock price remained unchanged, trading at 15:20 in early market activity.

 

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