① The overall revenue and net income of Daquan Energy in the second quarter of this year both hit a new low in the past two years, with a significant year-on-year and quarter-on-quarter decrease. ② In the first half of this year, Daquan Energy continued to expand production despite the sharp drop in polysilicon prices, but the growth rate of sales volume was lower than the output volume. ③ The company expects the polysilicon production in the third quarter to be 0.043-0.046 million tons, and the annual expected production to be adjusted to 0.21-0.22 million tons.
On August 26, Daquan Energy announced in the evening that due to factors such as supply and demand imbalance, market speculation, adjustments in downstream procurement strategies, and high inventory, the market polysilicon prices continued to decline.
Affected by this, in the first half of this year, the company achieved a revenue of 4.584 billion yuan, a year-on-year decrease of 50.84%; the net loss attributable to shareholders was 0.67 billion yuan, a year-on-year decrease of 115.14%, and a shift from profit to loss.
In the second quarter of this year, Daquan Energy achieved a revenue of 1.602 billion yuan, hitting a new low in the past two years, with a year-on-year decrease of 64.14% and a quarter-on-quarter decrease of 46.27%; the net loss attributable to shareholders during the same period was 1.001 billion yuan, also hitting a new low in the past two years, with a year-on-year decrease of 166.05% and a quarter-on-quarter decrease of 402.70%.
(Revenue situation for each quarter of Daquan Energy)
(Net income situation for each quarter of Daquan Energy)
Daquan Energy has always focused on the research and development, production, and sales of high-purity polysilicon. In the first half of this year, the company's R&D investment was 0.31 billion yuan, a year-on-year decrease of 0.03%, and the R&D investment accounted for 6.76% of the revenue, an increase of 3.43 percentage points.
In the first half of this year, Daquan Energy's polysilicon production reached 0.1272 million tons, a year-on-year increase of 60.75%. According to the data from the China Photovoltaic Industry Association, the company's polysilicon production in the first half of the year accounted for 12.00% of the domestic polysilicon production of 1.06 million tons during the same period.
During the same period, Daquan Energy's polysilicon sales volume reached 0.0971 million tons, a year-on-year increase of 26.34%; the unit selling price (excluding tax) was 47.01 yuan/kg, a year-on-year decrease of 60.99%; the unit cost was 45.97 yuan/kg, a year-on-year decrease of 10.49%; the unit cash cost was 40.31 yuan/kg, a year-on-year decrease of 10.52%.
From the above data, in the first half of this year, despite the sharp decline in the price of polysilicon, Daquan Energy continued to expand production. However, the year-on-year growth rate of sales volume was lower than that of production volume; although the unit cost and unit cash cost both decreased year-on-year, the magnitude of the decrease was far less than the year-on-year decrease in unit selling price.
Daquan Energy also mentioned in its semi-annual report that the polysilicon industry is facing pressure of loss and the profit gap between polysilicon enterprises is gradually becoming apparent, thereby accelerating the clearing of industry capacity.
According to incomplete data statistics released by the China Photovoltaic Industry Association, in the first half of this year, over 0.3 million tons of polysilicon projects have been announced to be terminated (suspended) or postponed, and the growth rate of production capacity has slowed significantly. Polysilicon prices gradually stabilized and entered the L-shaped bottoming phase at the end of June this year.
Daquan Energy stated that, given the current market environment and the volatility of product prices, in order to better control costs, stabilize product prices, and reduce unnecessary cash consumption.
The company has adjusted the annual routine maintenance schedule window and phased the adjustment of production load for the third quarter of this year. It is expected that the polysilicon production in the third quarter of this year will be 0.043-0.046 million tons, and the annual expected production will be adjusted to 0.21-0.22 million tons.
In addition, after starting to layout overseas markets last year, Daquan Energy will continue to intensify efforts to develop overseas markets, actively strive for overseas orders, and ensure a certain profitability in the market price fluctuations.
It is worth mentioning that in order to further develop downstream application markets for products, in addition to high-purity polycrystalline silicon, Daquan Energy has also expanded into semiconductor polycrystalline silicon, organosilicon, etc. Among them, semiconductor-grade silicon materials are regarded by Daquan Energy as a new profit growth point in the future.
Daquan Energy once planned to invest 0.421 billion yuan in the "annual production of 1,000 tons of high-purity semiconductor materials project", and later the capital investment of the project increased to 0.55 billion yuan.
Public information shows that the above-mentioned project is expected to achieve an average annual revenue of 0.206 billion yuan, an average annual net profit of 48.81 million yuan, and a post-tax static investment payback period of about 7.44 years after it goes into production.
According to the announcement by Daquan Energy on the evening of August 26th, the "annual production of 1,000 tons of high-purity semiconductor materials project" is expected to reach the predetermined usable state this year. As of the end of the first half of this year, the project was still in the product trial production verification stage and has not achieved profitability.