China-based polysilicon manufacturer Daqo New Energy Corporation has reported a 1.56% year-over-year (YoY) drop in revenue to $195.4 million in the fourth quarter (Q4) of  2024 from $198.5 million.

The company attributed the drop in revenue to a decrease in the average selling price (ASP) of polysilicon.

Xiang Xu, Chairman and CEO of Daqo, said that the market is witnessing a sharp price decline across the entire value chain due to excess capacity in the solar photovoltaic industry.

He added that the polysilicon market remained sluggish heading into the quarter as downstream customers continued drawing down accumulated inventory and coping with lower wafer capacity utilization rates of about 50%. However, polysilicon pricing remained stable within the quarter’s cyclical bottom range of RMB36 (~$4.94)/kg to RMB42 (~$5.76)/kg.

The company’s net loss widened to $180.2 million, a 196% YoY increase from $60.7 million.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) loss widened by 589.5% YoY to $236.5 million from $34.3 million.

Earnings per share (EPS) loss came in at $2.71 in Q4 2024 compared to an EPS of $0.76 in the same quarter of the previous year.

In Q4, polysilicon production volume was 34,236 MT compared to 43,592 MT in the previous quarter. Polysilicon sales volume was 42,191 MT in Q4  against 42,101 MT in Q3.

The average polysilicon production cost was $6.81/kg in Q4, compared to $6.61/kg in the previous quarter.

The ASP of polysilicon was $4.62/kg, compared to $4.69/kg in Q3 2024.

Full-Year Results

Daqo reported a consolidated revenue of over $1 billion in 2024, a 55.4% YoY fall from $2.3 billion. The revenues declined due to lower polysilicon ASPs combined with lesser sales volume. The company’s polysilicon ASP decreased significantly from $11.48/kg in 2023 to $5.66/kg in 2024.

The company’s net loss stood at $345.2 million in 2024, against a net profit of $429.5 million in 2023.

The decrease in profit was a result of lower ASPs and inventory impairment. For 2024, the company recorded $81.4 million in inventory impairment expenses, compared to $0.5 million in 2023. The company posted $175.6 million in fixed assets impairment loss mainly linked to its older polysilicon facilities in 2024, as a downward trend of the polysilicon selling prices continued and impaired the recoverability of carrying amounts of these assets.

The company’s EBITDA loss was $338.8 million in 2024 compared to 918.6 million in the previous financial year.

Its EPS loss came in at $5.22 in 2024 compared to an EPS of $5.73 in 2023.

The company reported a consolidated polysilicon production volume of 205,068 MT in 2024, a 3.6% YoY growth from 197,831 MT. Polysilicon sales volume stood at 181,362 MT in 2024, down slightly from 200,002 MT in 2023.

2025 Guidance

The company expects to produce approximately 25,000 MT to 28,000 MT of polysilicon in Q1 2025. Polysilicon production is expected to range between 110,000 MT and 140,000 MT in 2025.

In an earnings call, Daqo said polysilicon prices are expected to rise considerably before the end of Q2. The company believes that the polysilicon inventory may remain high throughout 2025. However, it is expected to reduce gradually in the next few months, leading to a potential polysilicon price upside in the second quarter.

Prices might also rise due to new policies on the distribution of solar installations and the renewable power tariff reform released by China’s National Development and Reform Commission and the National Energy Administration.

The company reported a significant decline in revenue and net income for Q2 2024 due to a drop in polysilicon prices below production costs.

In Q4 2023, the company reported lower revenue and net income as polysilicon prices declined due to market oversupply.