Daqo New Energy Corporation, a Chinese solar photovoltaic-grade polysilicon manufacturer, reported a revenue of $1.2 billion in the first quarter (Q1) of 2022, a year-over-year (YoY) increase of 399% compared to $256.1 million last year, and a quarter-over-quarter (QoQ) surge of 224% compared to $395.5 million in the fourth quarter (Q4) 2021.

The company stated that the QoQ surge in revenue resulted from higher polysilicon sales volume partially offset by a lower average selling price.

The Chinese PV manufacturer produced 31,383 million tons (MT) of polysilicon in Q1 2022, a QoQ surge of 33% in production compared to 23,616 MT in the fourth quarter of 2021. The company’s polysilicon sales volume skyrocketed by 233% to 38,839 MT, compared to 11,642 MT in the earlier quarter.

The average selling price of polysilicon in Q1 was $32.76/kg, compared to $33.91/kg in the same period a year ago.

The cumulative income of Daqo New Energy from operations in Q1 2022 amounted to $796.9 million, a YoY surge of 629%, and a QoQ surge of 249.3%, compared to $109.2 million and $228.1 million, respectively, in the same period last year. The operating margin was 62.2%, compared to 42.6% in Q1 2021 and 57.7% in the fourth quarter of 2021.

The Chinese polysilicon manufacturer’s gross profit amounted to $813.6 million in Q1, a YoY increase of 584%, and a QoQ surge of 239.2% compared to $118.9 million and $239.8 million, respectively, last year. The company recorded a 63.5% increase in gross margin in Q1 and attributed the surge in sales to increased gross profit.

Daqo New Energy’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q1 amounted to $826.8 million, a YoY rise of 545.4%, and a QoQ surge of 229.2. The net income attributable to Daqo New Energy’s shareholders in Q1 was $535.8 million, a YoY surge of 543%, and a QoQ increase of 279%.

China exported 100 GW of solar modules last year, despite the challenges posed by the pandemic, while the country deployed 55 GW of new solar installations in 2021. The annual output growth rate was 50-60%.

Last July, Daqo New Energy announced that it would apply for an initial public offering of its major operational subsidiary— Xinjiang Daqo New Energy (Xinjiang Daqo), on the Shanghai Stock Exchange’s Sci-Tech innovation board.