Daqo New Energy Q1 2024 Earnings Call Transcript

Quartr
Provided by Quartr
April 29, 2024

There are 7 speakers on the call.

Operator

Good day, and welcome to the Daq New Energy First Quarter 2024 Results Conference Call. All participants will be in a listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Shang Su, CEO. Please go ahead.

Speaker 1

Hello, everyone. I'm Anita, the Investor Relations of Daqo New Energy. Thank you for joining our conference call today. So Daqo New Energy just issued its financial results for the Q1 of 2024, which can be found on our website at www. Dqsolar.com.

Speaker 1

So today, attending the conference call, we have our Chairman and CEO, Mr. Xiang Shu our CFO, Mr. Min Yang and myself. The call today will begin with an update from Mr. Xu, market conditions and company operations, and then Mr.

Speaker 1

Yang will discuss the company's financial performance for the quarter. After that, we'll open the floor to Q and A from the audience. Before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth, are forward looking statements that are made under the safe harbor provisions of the U. S. Private Securities Litigation Reform Act of 1995.

Speaker 1

These statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward looking statements. Further information regarding these and other risks is included in the reports or documents we have filed with or furnished to the Securities and Exchange Commission. These statements only reflect our current and preliminary view as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties.

Speaker 1

All information provided in today's call is as of today, and we undertake no duty to update such information except as required under applicable law. Also during the call, we'll occasionally reference monetary amounts in U. S. Dollar terms. Please keep in mind that our functional currency is Chinese RMB.

Speaker 1

We offer these translations into U. S. Dollars solely for the convenience of the audience. Mr. Xu will make his remarks regarding current market and company performance in Chinese, which I'll translate into English after he finishes.

Speaker 1

Now I'll turn the call to our CEO. Hello, everyone. This is Anita. Thank you for joining the call. So I'll now translate our CEO, Mr.

Speaker 1

Xu's remarks. During the Q1, we continued to optimize our manufacturing operations and made improvements in both yield and throughput at our 2 PolyJet facilities. Total production volume for the quarter was 62,278 metric tonnes, which was above our expectations and represented an increase of 12.64 metric tonnes compared to the previous quarter. Our Inner Mongolia 5A facility contributed 46% of our total production volume for the Q1. Through achievements in R and D and significant purity improvements at our both at both facilities, we further increased our anti product mix from 60% in December last year to 72% in March.

Speaker 1

Compared to the end of last year, production costs trended down over the quarter, decreasing further by 2% from Q4 2023 to an average of US6.37 per kilogram in the Q1 of 2024. For the quarter, we generated USD 77,000,000 in EBITDA. By the end of Q1 2024, the company maintained a strong cash balance of CNY 2,700,000,000 and a combined cash and banknote receivable balance of CNY 2,900,000,000 We expect Q2 24 total poly production volume to be approximately 60,000 metric tons to 63,000 metric tons, similar to that of Q1 2024 as the company maintains full production. We expect to finish construction and begin initial pilot production at our New Inner Mongolia Phase 5B facility in the Q2 of 2024 and expect to ramp up to full production level by the end of Q3 2024. As a result, we anticipate full year 2024 production volume to be in the range of 280,000 metric ton to 300,000 metric tons, approximately 40 percent to 50% higher than that of 2023.

Speaker 1

With more than 15 years of experience in poly production as well as a fully digitalized and integrated production system that optimizes operational efficiency, we'll continue to increase our entire production in the product mix. During the Q1, the solar market initially showed signs of strength as we head into the Chinese New Year holiday in February. Despite production cuts and downtime, as usual, during the holidays, polysilicon demand had been strong preholiday as wafer manufacturers kept utilization rates unchanged or even higher in anticipation of higher demand and better product pricing post holidays. The general polysilicon price range was RMB 65 to RMB 70 per kilogram for N type and RMB 55 to 60 RMB per kilogram for P type during the period. However, with weaker than expected production plans downstream during March, the wafer sector faced significant pressure from accumulated inventories and negative margins.

Speaker 1

Market sentiment shifted significantly in mid March with widespread expectations of falling prices throughout the value chain, particularly for polysilicon. As a result, downstream manufacturers began to lower utilization, reduce inventory and delay orders to minimize the impact of falling prices. In April, further pressure on polysilicon prices emerged as the issue of excess inventory among wafer manufacturers worsened and wafer customers further delayed orders and product delivery. Therefore, polysilicon prices dropped further by late April to RMB 47 to RMB 54 per kilogram for Tier 1 producers at the industry's cash breakeven cost. At this level, we believe the entire solar value chain, including polysilicon, is likely to be loss making in general and that a large number of polysilicon producers are currently unprofitable.

Speaker 1

The solar industry has gone through multiple cycles in the past. And based on our previous experience, we believe that the current low prices and market downturn will eventually result in a healthier market as poor profitability and losses as well as cash burn will lead to many market players exiting the business with some possible bankruptcies. This will bring the inevitable capacity rationalization and solve the overcapacity issue we're currently experiencing. And as demand growth resumes after excess inventories are depleted in the short term and on the backdrop of positive policies pushing renewable installations in the long run, the solar PV industry will return to normal profitability and achieve better margins. We believe that at the end of the quarter, we had one of the industry's lowest levels of finished goods inventory with approximately 2 weeks of production.

Speaker 1

Overall, 2023 marked a step change for renewable power growth with China's newly installed solar PV capacity reaching a record high of 216.9 Gigawatt, representing 148% year over year growth. We continue to see strong growth in solar PV installations in China during the Q1 of 2024, which reached an aggregate of 45.7 gigawatt, representing a 36% year over year growth rate. Solar has become one of the most competitive forms of power generation, and continuous cost reductions in solar PV products and associated in solar energy generation costs are expected to create substantial additional demand for solar PV. With 2023 setting the stage for gradually phasing out P type products, we believe that 2024 will mark the year when N type products dominate the industry. We are optimistic that we'll capture the long term benefits of the growing global solar PV market and maintain our competitive advantage by enhancing our higher efficiency N type technology and optimizing our cost structure through digital transformation and AI adoption.

Speaker 1

As one of the world's lowest cost producers with the highest quality anti product, a strong balance sheet and no financial debt, we believe we're well very well positioned to weather the current market down cycle and emerge as one of the leaders in the industry to capture the market's future growth. Now I'll turn the call to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead.

Speaker 2

Hello, everyone. This is Ming Yang, CFO of Daqo New Energy. We appreciate you joining our earnings conference call today. I will now go over the company's Q1 2024 financial performance. Revenues were 400 and $15,300,000 compared to $476,300,000 in the Q4 of 2023 and $709,000,000 in the Q1 of 2023.

Speaker 2

The decrease in revenue compared to the Q4 of 2023 was primarily due to a decrease in average selling prices and lower polysilicon sales volume. Gross profit was $72,000,000 compared to $87,000,000 in the 4th quarter of 2023 $506,000,000 in the Q1 of 2023. Gross margin was 17.4% compared to 18.3% in the Q4 of 2023 and 71.4% in the Q1 of 2023. The decrease in gross margin compared to the Q4 of 2023 was primarily due to lower average selling prices, which was partially mitigated by lower production costs. Selling, general and administrative expenses were RMB38,400,000 compared to $39,000,000 in the Q4 of 2023 $41,300,000 in the Q1 of 2023.

Speaker 2

SG and A expenses during the Q1 included $19,600,000 in non cash share based compensation costs related to the company's share incentive plan compared to $19,600,000 in the Q4 of 2023. R and D expenses were $1,500,000 compared to $3,300,000 in the Q4 of 2023 $1,900,000 in the Q1 of 2023. R and D expenses vary from period to period and reflect the R and D activities that take place during the quarter. Our R and D activities currently focus on process and technologies that improve purity for polysilicon and remove contamination to increase our anti polysilicon percentage. As with all of the foregoing, income from operations were $30,500,000 compared to $83,300,000 in the 4th quarter of 2023 $463,800,000 in the Q1 of 2023.

Speaker 2

Operating margin was 7.3 percent compared to 17.5% in the Q4 of 2023 and 65% in the Q1 of 2023. Foreign exchange loss was $300,000 compared to a loss of $800,000 in the Q4 of 2023 This is attributed to the volatility and fluctuation of the U. S. Dollar to RMB exchange rate during the quarter. Net income attributable to Daqo New Energy shareholders was RMB15,500,000 compared to RMB53,300,000 in the Q4 of 2023 and $278,800,000 in the Q1 of 2023.

Speaker 2

Earnings per basic ADS was $0.24 compared to $0.76 in the Q4 of 2023 and $3.56 in the Q1 of 2023. Adjusted net income attributable to Daqo New Energy Corp. Shareholders, excluding non cash share based compensation costs was $36,000,000 compared to $74,300,000 in the Q4 of 2023 and $310,000,000 in the Q1 of 2023. Adjusted earnings per basic ADS was $0.55 compared to $1.06 in the 4th quarter of 2023 and $3.96 in the Q1 of 2023. EBITDA was $76,900,000 compared to $128,000,000 in the Q4 of 2023 and $490,000,000 in the Q1 of 2023.

Speaker 2

EBITDA margin was 18.5% compared to 26.9% in the Q4 of 2023 and 69% in the Q1 2023. Now on the company's financial condition. As of March 31, 2024, the company had RMB2.689 billion in cash and cash equivalents compared to RMB3.05 billion as of December 31, 2023 and RMB4.1 billion as of March 31, 2023. And as of March 30 1, 2024, the notes receivable balance was $194,000,000 compared to $116,000,000 as of December 31, 2023 and $791,000,000 as of March 31, 2023. No receivables or percent bank notes with maturity within 6 months.

Speaker 2

For the 3 months ended March 31, 2024, net cash used in operating activities was $115,900,000 compared to net cash provided by operating activities of $807,000,000 in the same period of 2023. Net cash used in operating activities for the quarter was a result of change in operating assets and liabilities, primarily related to the company's payment of approximately $75,000,000 in tax payables that is due during the Q1, as well as an increase in no receivable balance of approximately $78,000,000 And other items that use cash include payments to suppliers in conjunction with the period related to the Chinese New Year holidays as well as the increase in inventory. For the 3 months ended March 31, 2024, net cash used in investing activities was RMB190.5 million compared to RMB268.9 million in the same period of 2023. Net cash used in investing activities in the first quarter of 2024 was primarily related to the capital expenditures on the company's Phase 5a and Phase 5b polysilicon expansion projects in Baotou City, Inner Mongolia. Due to the recent changes in market condition, the company's Board and management team have decided to temporarily postpone the company's non polysilicon manufacturing capacity expansion plans to reserve capital.

Speaker 2

As such, the company's capital expenditure plan has been reduced to approximately $700,000,000 for the year, which is related to the company's inner Mongolia polysilicon project. And this represents a significant decrease from the previous capital expenditure plan for the year of approximately RMB1.1 billion to RMB1.2 billion. And for the 3 months ended March 31, 2024, net cash used in finance activity was $6,000,000 compared to net cash provided by finance activities of $59,900,000 in the same period of 2023. Net cash used in finance activity in the Q1 of 2024 was primarily related to approximately $5,000,000 that was used for the company's share repurchase. And that concludes our prepared remarks.

Speaker 2

We will now open the call to Q and A from the audience. Operator, please begin.

Operator

We will now begin the question and answer session. The first question today comes from Phil Shen with ROTH MKM. Please go ahead. We seem to be unable to connect to Phil Shen's audio. The next question comes from Alan Lowe with Jefferies.

Operator

Please go ahead.

Speaker 3

Thanks a lot for taking my question, management. So I think the first question that I've received after the announcement is about the buyback. So I wonder if there's any guidance from the management in regards to buyback or dividends planned in this year?

Speaker 2

Okay. So the Board actually had a discussion about a potential doing a share continue to do the share repurchase program. But I think in light of the current market condition where the industry overall is actually looking like it's going to be making losses and we're uncertain how long this might last. So the Board does feel that it's more prudent to conserve capital for now to weather the market downturn. And then we they would like to see how the market would perform.

Speaker 2

And if the market does improve perhaps later in the year, I think the Board would definitely consider a program at a later date as appropriate. I think just because of the market condition, I think the Board does feel that we need to conserve capital, right? I think including though we significantly reduced our capacity expansion plans. And separately, I think the company is also strategically looking at potential expansions overseas outside of China, including areas in Middle East where we're actually looking at several locations pretty actively and then also potentially in other areas in Southeast Asia as well. So that also represents a potential use of funds for the company.

Speaker 2

So the Board is also making some considerations because of that as well.

Speaker 3

I see. So yes, another question I have is on the sales volume. So in terms of in the production and actually the company has actually have an upside surprise in the production volume, but the sales seems lower than the production volume. So we'd like to know how much is the inventory right now in the company? And also in regards to the sales volume in the Q1, was it related to the cut in utilization rate in wafer segment?

Speaker 2

Okay. Yes. I think operationally, the company actually was doing very well this quarter. I think if you exclude the impact of the market condition in the second half of March, I think we produced more than 50 2,000 metric ton, right, increase over the previous quarter. So this is a pretty good improvement.

Speaker 2

But particularly on the quality side, we made very significant improvements in quality, particularly in Inner Mongolia, our New In Mongolia facility. So N type as of March is now north of 70% of our mix. And at the same time, we also saw further reduction in production costs. I think this is that since mid March, the industry conditions declined significantly. I think customers delayed their orders.

Speaker 2

They delayed delivery of polysilicon for production. They lowered the utilization. I think in anticipation of lower polysilicon pricing, but also because of the significant wafer inventory that was occurring at the time. Yes. So actually, this situation actually persisted more or less through mid to late April.

Speaker 2

I think now we're shipping normally, but at a much lower pricing. At the end of the quarter, we had approximately 2 weeks slightly less than 2 weeks of production of finished goods inventory. So we think that's probably one of the lowest within the industry.

Speaker 3

2 weeks of inventory is actually quite impressive. So another question I have is on the other operating income. So the Q o Q change is relatively significant. So I would like to know, is it related to the change in the subsidies provided in terms of the power tariff?

Speaker 2

So actually, I believe we had other so it's actually an expense for the quarter rather than income. And then it's related to some of the older equipment that we replaced. So the equipment needs to be expensed, it's longer being used. It amounted to about $1,600,000 So it's not too significant. This happens like maybe once a year or something like that.

Speaker 3

I see. So in the Q1, there isn't any subsidies coming in, right, like in 4Q?

Speaker 2

Yes. So we would expect some subsidy potentially in the Q2 and then more subsidy likely in the Q4. Well, usually it's in the second half of the year.

Speaker 3

I see. So I think my last question is in regards to the industry like how do you see the poly price going forward this year? And then when do you see a turnaround in the industry?

Speaker 2

Okay. So the most recent price decline, we believe actually is more of a result than the inventory adjustment that's happening, right, so customers delaying orders and with the expectations of lower pricing in future periods, right? So people would then want to take a wait and see mode. And now at the lower price, we're starting to see orders returning, although at a lower level, lower pricing level. We think that this the pricing level where the industry is at right now is actually money losing probably for, I would call, 70%, 80% of the industry.

Speaker 2

So I think almost majority of the players are losing money right now and this certainly cannot be sustainable. I think if this price does persist, it's a matter of time, a number of players will likely need to shut down or some may even exit the business or go into bankruptcy. I think we're likely to see that price stays at the slow level. But then that will bring the eventual capacity rationalization, right, I think that people are expecting. And then at the same time, you also have a lot of opportunity on demand.

Speaker 2

So we think China is likely to be very strong this year because of where the panel price is right now. So it's offering very high return for the solar projects here in China, I think globally as well. So we are optimistic that we could see a very significant end market this year. So I think it's the balance of these 2. I think timing is hard to tell.

Speaker 2

I think we could see some improvements in the second half of this year.

Speaker 3

I see. So I think another thing is the so let's talk about the a lot of players are actually losing money. So are you going to delay your Phase 5b or like what is the CapEx going to look like in this year, especially at current prices?

Speaker 2

So we're delaying everything else, almost everything else except 5B because 5B is already ready to go into production because it's been under construction for a year or over a year. So I think 5B was still at least for now, as of today, it's still being planned as originally scheduled to start production in Q2 in this quarter actually, initial production and then ramp up in Q3.

Speaker 3

So thanks. I'll pass on and yes, I'll pass on to other investors. Thanks a lot for taking my questions.

Speaker 2

Okay. Thank you.

Operator

The next question comes from Leo Ho with Daiwa Capital Markets. Please go ahead.

Speaker 4

Thanks management for your time today. My first question is regarding the FBR granular circuit. We noticed that there are several major module makers including, for example, Longji and JKS suggesting that the FBR doping ratio, now they can do around 50% for N type wafer. I just wonder if we can share any update on this FBR usage situation, what's the uptake and then why we're seeing such an sudden increase in the dosing ratio? Thank you.

Speaker 2

I think on the FBR, at least based on feedback from our customers is that it continues to have higher levels of contaminants and higher surface metal and higher hydrogen and higher carbon. So I think the challenge with most of the wafer producer is that the higher carbon content actually leads to breaking of the water salt. So and then also the contamination and also the hydrogen jumping issue means that less amount of poly can be used per run. So if you use FBR, you have a slight reduction in production yield per run on the ingot. So and that's the main reason why customers require discount and currently primarily use it as a mix.

Speaker 2

In the previous understanding is the mix is between 10% to 30%. But I think every producer probably has a slightly different mix. I think some of the main players these players are also our customer, right? But I think I don't want to diversify their sourcing or maybe they want to lower their costs, right? So they're I mean, they're always looking for lower cost sources to the extent that they can use, right?

Speaker 2

So we're not surprised that they are near some kind of agreement. And these agreements are always at least in China, almost always, these are kind of framework agreements, right? So the volume and pricing is adjusted on a monthly basis.

Speaker 4

Understood. That's actually my next question is regarding the price gap for different type of POSIC and say for example N type versus P type and then also for N type high quality POS second that we produce against FBR, what are those like price gaps going to look like right now and also looking forward? Thank you.

Speaker 2

I think consistently the N type poly has had price premium in the range of maybe RMB5 to RMB10 per kilogram. I think currently it's somewhere in the RMB 7 to RMB 8 per kilogram still even at the current pricing. While FBR is generally priced at a discount to the P type poly generally, Above the FBR has different grades, right? But within N type and P type, there is also different grades generally related to the form factor of the surface structure. Yes.

Speaker 2

So it's not like one single price. It's usually a range of price.

Speaker 4

And my last question is regarding electricity tariff for our Baotou and Sihe Zhi capacities. Would there be any like electricity type changes that we expected for this year or for next year?

Speaker 2

No, we're expecting any electricity tariff adjustments on the electricity rates.

Speaker 4

Thanks so much. That's exactly. Thank you.

Speaker 2

Okay. I think for Xinjiang, we're expecting the rate to be very stable. I think the rate has been fixed. The previous adjustments was mostly related to, I think, a policy issued by NDRC that kind of forbid single entity type of energy price structure. And at the same time, it also coincided a time where the coal prices was at a higher price.

Speaker 2

So our utility company actually was losing money on the power sales to us, on the power they generate. So after the rate adjustment, that's no longer the case. And we are I mean, we continue to have the most favorable utility rate for that local utility utility for the region. It's still competitive, but we don't expect that to change or the rate to change. I think similarly for in the Mongolia, in the Mongolia already had an adjustment, I think, around in the first half of twenty twenty three, I believe, also based on the NDRC rule.

Speaker 2

So now the In the Mongolia rate structure is actually a market based structure where actually the rate is not fixed, it's actually floating based on market supply and demand for the utility market. But because we buy a significant portion of our power that comes from renewables and renewable pricing utility is lower than coal for the inner Mongolia grid. So and also we have the most preferential pricing for the whole local grid there. So we do have I think we have a very, very competitive utility price there and we don't expect that to change. It's already being adjusted.

Speaker 4

Thank you so much for the additional color. These are all from my side. Thank you.

Speaker 2

Great. Thank you.

Operator

The next question comes from Phil Shen with ROTH

Speaker 5

Sorry about the technical difficulties earlier. I'd like to explore price just a little bit more. Can you give us a sense of pricing beyond this year as well? Do you think there could be some recovery next year? We've seen price decline recently and some of the experts that we've been consulting with suggest that price is will continue to decline as we go through the year.

Speaker 5

So, wondering if you can give us a view of 2020 5?

Speaker 2

Thanks. Okay. We do think pricing is probably at the bottom or if not at the bottom near the very bottom. It's already below cash breakeven price for a lot of the producers. We think 70% to 80%.

Speaker 2

We think starting in the next 2 months or so, we're we will start to see shutdown. We're already starting to see shutdowns and we will see more shutdowns going forward. So if this, say, persists through Q3, we think some of the producers will run into cash problem. And then if we're going into next year, I mean, we might see an OCI like type of shutdown, right? I think some of the investors might remember OCI shutdown in 2020.

Speaker 2

I think that was they kind of gave up. So I think if price stays low, we will see this kind of condition. I we don't think price can stay this low until, say, through next year. Certainly, you will have much lower production of poly than in this price is not sufficient to service the market and demand growth. And then some of it, the current market condition is due to inventory adjustments, right?

Speaker 2

So I mean, ultimately, the downstream customers will need to restart buying again, right? Because they bought probably more than they need in say in the first half of the quarter. And then when their expected demand or price increase did not materialize in second half of March, that's when they slowed down or stopped ordering. So it's kind of this the market behavior that's creating kind of the volatility that we're seeing in the market right now.

Speaker 5

Got it. Thanks, Ming. And can you talk about the amount of channel inventory that's in the market now? And then do you expect that to continue to grow for the near term? And then when do you think that peaks?

Speaker 2

We've heard various amounts of, you call it, statistics or a number of we've heard it's somewhere in the range of 150,000 to 180,000 metric ton right now of channel inventory. And we're a very insignificant part of that. And some of our peers and main peers actually have a lot of inventory currently. So we'll see how that works.

Speaker 5

Okay. And then you talked about 70% to 80% are losing money. What's your guess as to what percentage of the industry could be shut down by the end of the year? I mean, do you think it could be as much as a quarter of the industry could be shut like well, what percentage of the business could of the industry could go out of business and maybe go away or what are your thoughts on that? Thanks.

Speaker 2

This is very ballpark. I think about half, half would shut down.

Speaker 5

Okay. So half would exit the industry?

Speaker 2

Yes. I mean, yes, I think capacity that's kind of in Sichuan is definitely not competitive. The capacity in Green Line is not competitive at the current market. And then some even some capacity in Mongolia is even competitive to the current price. Okay.

Speaker 2

Last question please. It's not produced sustainably. Yes.

Speaker 4

Okay. Yes. Thank you.

Speaker 5

What are your thoughts on the Chinese government stepping in to influence or regulate maybe setting price caps or something like that. We were reading and seeing some potential for that for the module industry. Do you think there could be something like that for poly where the government steps in to avoid this overcapacity in the future?

Speaker 2

We haven't heard about that at all. We haven't seen any government actions related to that.

Speaker 5

Okay. Thank you very much. I'll pass it on.

Speaker 4

Okay. Thank you.

Operator

The next question comes from Allen Han with JPMorgan. Please go ahead.

Speaker 6

Hi, this is Alan from JPMorgan. I have like questions on the amount of capacity in the system right now and also like the outlook in the next 1 to 2 quarters. I mean, other than you, who else would be adding capacity? That would be my first questions.

Speaker 2

Understanding the capacity in the system is around maybe 1,800,000 to 2,000,000 tons per year.

Speaker 6

Got it. And my second question is like how do you what do you expect your cost management in the Q2? Or for the new product, what do you expect the new product cost structure will be?

Speaker 2

Okay. I think at least as of today, okay, so we are expecting our costs to continue to decline. So I think preliminarily because we're ramping up in the Mongolia Phase 2. So cost for Q2 is probably similar to slightly less than Q1. And then we think costs will continue to trend down for Q3 and Q4.

Speaker 6

Well, I guess like one driver of the cost down would be the commencement of the new plan in Q2 that will be fully ramped up in Q3, right? So do you have like a target for the cost structure of the new prime?

Speaker 2

Okay. Right. So I don't think we've discussed this earlier. So for the first time, in the Mongolia cost is now below our Xinjiang cost, right? I don't know if you remember.

Speaker 2

So the intermangolia cost design was to be below Xinjiang, but was higher than Xinjiang. Higher than Xinjiang, I think. Q3, Q4 until this quarter. Okay. Also, we had very significant improvements in quality as well.

Speaker 2

So I think that gave us further confidence that once Intramogrela Phase 2 starts, it should be able to see similar or even better trajectory in terms of cost reduction and quality improvement, right? Because now we've done this once already, so we know where all the issues are.

Speaker 6

Got it. Thanks. And those are all my questions.

Speaker 2

Very great. Thank you, Alan.

Operator

This concludes our question and answer session. I would like to turn the conference back over to Anita Hsu for any closing remarks.

Speaker 1

Thank you, everyone, again for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you, and have an awesome day. Goodbye.

Remove Ads
Powered by Quartr
Earnings Conference Call
Daqo New Energy Q1 2024
00:00 / 00:00
Remove Ads