Daqo announced skyrocketing revenue and income

Chinese Daqo New Energy Corp., manufacturer of high-purity polysilicon for the solar PV industry, announced revenues of $441.4 million in the second quarter of 2021, compared to $256.1 million in the first quarter of 2021 and $133.5 million in Q2 2020. According to the company, the increase in revenues as compared to the first quarter of 2021 was primarily due to higher average selling prices (ASP) partially offset by slightly lower polysilicon sales volume. Net income attributable to Daqo New Energy Corp. shareholders was $232.1 million, compared to $83.2 million in the first quarter of 2020 and $2.4 million in Q2 2020.
Polysilicon production volume was 21,102 MT in Q2 2021, compared to 20,185 MT in Q1 2021. Sales volume was 21,060 MT (Q1 2021: 21,471 MT). Average total production cost increased slightly to $6.31/kg from $6.29/kg in Q1 2021. Polysilicon average selling price nearly doubled in Q2 2021 to $20.81/kg, compared to $11.90/kg in Q1 2021.
The company produced 41,287 MT of polysilicon and sold approximately 42,531 MT in the first half of 2021, representing full utilization level of the company's production facilities. For the second half Daqo expects to remain in full utilization with sales volume similar to production volume. For the full year of 2021, the company raises its production guidance from the previous level of 81,000 to 83,000 MT to the level of approximately 83,000 to 85,000 MT, inclusive of the impact of the company's annual facility maintenance.
Longgen Zhang, CEO of Daqo New Energy expects the strong price momentum to continue into the second half of this year. »In July and August, the market price for mono-grade polysilicon has remained at approximately $26 to 28 per kilogram.«

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