Daqo New Energy Corp. (NYSE:DQ) Q2 2019 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 08:00 am ET


Daqo New Energy Corp. (NYSE:DQ) Q2 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the Daqo New Energy, Second Quarter 2019 Results Conference Call. All participants will be a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. I would now like to turn the conference over to Kevin He of Investor Relations. Please go ahead.

Kevin He

Hello, everyone. I'm Kevin He, the Investor Relations of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the second quarter of 2019, which can be found on our Investor Relations website at ir.xjdqsolar.com. To facilitate today's conference call, we have also prepared a PPT presentation for your reference.

Today, attending the conference call, we have Mr. Longgen Zhang, our Chief Executive Officer; and Mr. Ming Yang, our Chief Financial Officer. The call today will feature an update from Mr. Zhang on market and operations and then Mr. Yang will discuss the Company's financial performance for the second quarter of 2019.

After that, we will open the floor to Q&A from the audience. Before we begin the formal remarks, I would like to remind you that the 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 US Private Securities Litigation Reform Act of 1995. 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 statement. 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 the preliminary view as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. 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 will occasionally reference monetary amounts in U.S. dollar terms. Please keep in mind that our functional currency is the Chinese RMB.

We offer these translations into U.S. dollars solely for the convenience of the audience. Without further ado, I now turn the call over to our CEO, Mr. Zhang, please?

Longgen Zhang

Hello everyone and thank you for joining us today for our earnings call. We are pleased to report a solid quarter in which we made good progress in capacity increase and quality improvement. During the second quarter, we completed our capacity debottlenecking project on time, which allowed us to increase our annual capacity to 35,000 metric ton.

At the same time, we also completed the scheduled annual maintenance of our Xinjiang facilities, which was originally scheduled in the third quarter, while our production volume was temporarily impacted by the debottlenecking project and the annual maintenance of our facilities. We were still able to produce 7,151 metric tons of polysilicon in