Summary by Moomoo AI
Daqo New Energy Corp. reported a net loss of $119.8 million in Q2 2024, compared to a net income of $15.5 million in Q1 2024. Revenues fell to $219.9 million from $415.3 million in Q1, due to lower polysilicon average selling price (ASP) of $5.12/kg, down from $7.66/kg. The company recorded a $108 million inventory impairment as market prices fell below production costs.Polysilicon production volume increased to 64,961 MT in Q2 from 62,278 MT in Q1. The company maintained a strong balance sheet with $997 million in cash and $2.5 billion in quick assets. Daqo adjusted its 2024 production forecast to 210,000-220,000 MT due to market conditions.CEO Xiang Xu noted that the solar industry faced significant challenges with prices falling below production costs. He expects the current downturn to lead to industry consolidation and capacity rationalization. Daqo aims to weather the downturn by enhancing N-type technology and optimizing costs through digital transformation and AI adoption.
