Transported from: Caixin

on the evening of April 29, the silicon industry leader Daquan energy (688303.SH) released its first quarter financial report for 2024. According to the report, the company's operating income in the first quarter was 2.98 billion billion yuan, down 38.6 percent from the same period last year, and the net profit attributable to shareholders of listed companies was 0.33 billion billion yuan, down 88.6 percent from the same period last year. Although the company's overall profitability is not very bright, it is commendable to remain profitable when most of its peers are losing money.

Since 2024, photovoltaics have undergone cyclical adjustments, and the industry's clearing speed has accelerated. However, Daqo Energy continues to maintain its cost, quality and scale advantages, showing strong anti-risk capabilities, and continues to maintain a leading position in the industry.

The downward pressure on the industry continues, and there are still several companies making money

At this time, we are in the downward environment of the silicon industry. Many companies are facing huge operating pressure and technical challenges. Elimination, loss of money, and suspension of production have become sparse.

Judging from the recent results disclosed by several industry-leading companies, everyone is under pressure.

according to last year's annual report, the silicon giants suffered from each other, with profits falling to varying degrees. Xiexin Technology's operating income in 2023 was 33.7 billion yuan, down 6.2 percent from the same period last year, and its net profit was 2.51 billion yuan, down 84.7 percent from the same period last year. Daquan Energy's operating income in 2023 was about 16.329 billion yuan, down 47.22 percent from the same period last year, and the net profit attributable to shareholders of listed companies was about 5.763 billion yuan, down 69.86 percent from the same period last year. Tongwei Group, which has a number of photovoltaic links, earned 139.104 billion yuan in 2023, net profit attributable to shareholders of listed companies was 13.574 billion billion yuan, down 47.25 year on year.

Entering the first quarter of 2024, the photovoltaic industry is quite turbulent, and the stock prices of the giants have hit record lows. In terms of performance, there are also varying degrees of losses. In the last year, the PV index has fallen 32.35 per cent and annualised yields have fallen 33.21 per cent, according to Wind. Some people in the industry believe that when the industry giants are deep in the quagmire, the bottom position is becoming more and more clear.

Tongwei's quarterly report showed that operating income was 19.57 billion yuan, down 41.13 percent from the same period last year, with a net loss of 0.787 billion yuan. Longji Green Energy's losses were even worse, with revenue of 17.67 billion yuan in the first quarter, down 37.59 percent from the same period last year, with a net loss of 2.358 billion yuan. TCL Central was not spared, with revenue of 9.933 billion yuan in the first quarter, down 44% from the same period last year, with a year, with a net loss of 0.88 billion yuan.

In a wailing, it is not easy to achieve positive off-season profits and real numbers. For example, Daquan Energy's net profit in the first quarter was 0.33 billion yuan, while Xinte Energy's was 0.359 billion yuan.

"The future is a competition between cost and quality." Daquan energy vice chairman Xu Xiang repeatedly stressed in public. As the first batch of solar photovoltaic high-purity polysilicon material manufacturing enterprises in China, Daquan Energy has become a global leader in the polysilicon material industry.

the company's digital "smart" manufacturing strategy and cost reduction and efficiency measures have achieved remarkable results. in the first quarter of 2024, the unit cash cost has dropped to 40.5 yuan/kg. While the cost is steadily decreasing, the company has successfully ensured the stability and reliability of product quality by virtue of strict quality management system, advanced testing equipment and efficient quality control process. In 2023, more than 99% of the company's products can meet the demand for downstream monocrystalline silicon wafers, and more than 99% of the products exceed the photovoltaic level and reach the electronic level 3 standard. More than 90% of the products are above the electronic level 1 standard.

According to the data released by the Silicon Industry Branch, the average transaction price range of P-type dense materials in the first quarter of 2024 is 58500~60100 yuan/ton, and the average transaction price range of N-type silicon materials is 69600~72100 yuan/ton. The price of silicon materials is constantly approaching the cost line of enterprises in the industry, which not only brings pressure and challenges to the industry, but also provides new opportunities for enterprise development. In the first quarter of 2024, Daquan Energy successfully realized the output of N-type polysilicon materials by 43000 tons, the sales of N-type polysilicon materials by 37000 tons, and the production and sales of N-type polysilicon materials accounted for 69.0 and 68.6 respectively.

Maintain stable, sustained investor returns and actively explore multiple dividend options

In order to enhance investor confidence and demonstrate the company's confidence in dealing with the PV cycle, Daqo Energy has paid dividends twice since its listing in 2021, with a cumulative dividend of 8.85 billion yuan. Among them, a cumulative cash dividend of 1.155 billion yuan will be distributed in 2021, with a dividend rate of 20.18; a cash dividend of 7.695 billion yuan will be implemented in 2022, with a dividend rate of 40.24 percent. In 2023, the company intends to pay a dividend of 1.153 billion yuan, with a dividend rate of 20.01.

At the end of March this year, Daquan Energy repurchased approximately 7.84 million shares of the company, accounting for 0.3654 of the company's total share capital of approximately 2.145 billion shares, and the total amount of funds paid was approximately RMB 0.268 billion.

Daquan Energy stated that in 2024, it will pay close attention to capital market trends, combine business status, future development plans and industry development trends, continue to provide investors with continuous and stable cash dividends, and bring long-term investment returns to investors. And actively explore plans such as multiple dividends and mid-term dividends in one year to enhance investors' sense of value gain.

Against the backdrop of years of profitability, the company has a substantial monetary balance, laying a good foundation for investor returns. As of March 31, 2024, the Company's total monetary capital amounted to 17.41 billion, with a gearing ratio of 12.09, which is a low level in the industry.

The photovoltaic industry is still in a volatile stage, the overall pattern is constantly being reshaped in the tortuous repair path, and high-quality resources will continue to gather to the head enterprises.

According to the International Energy Agency (IEA) report, global solar PV installed capacity reached a record 420GW in 2023, up about 84% year-on-year. According to the PVinfolink data forecast, the new photovoltaic installed capacity will be 240GW in 2024, of which the development of centralized and distributed projects will go hand in hand, with an estimated centralized installed capacity of 118GW, accounting for 49%; Distributed installed capacity of 122GW continues to grow, accounting for 51%.

It can be seen that the 2024 photovoltaic market will continue to grow. Daquan Energy has always regarded quality, cost and production capacity as the three core driving forces. By continuously optimizing production costs and improving product quality, it will continue to strengthen the company's core competitiveness in the industry.