Daqo New Energy Corp ADR

Good day and welcome to the DocQ New Energy First Quarter 2024 Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Shang Su, CEO. Please go ahead.

Hello, everyone. I'm Anita, the investor relations of DACO New Energy. Thank you for joining our conference call today. So DACO New Energy just issued its financial results this quarter of 2024, which can be found on our website at www.dqsolar.com. So today, attending the conference call, we have our chairman and CEO, Mr. Xiang Xu, our CFO, Mr. Ming Yang, and myself. The call today will begin with an update from Mr. Xu, market conditions and company operations, and then Mr. Yang will discuss the company's financial performance for the quarter. After that, we'll open the floor to Q&A from the audience. Before we begin the formal remarks, I would like to remind you that 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 U.S. 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 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'll 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. Mr. Xu will make his remarks regarding current market conditions and company performance in Chinese, which I'll translate into English after he finishes. Now I'll turn the call to our CEO.

Thank you, Anita. I'm Xu Xiang, CEO of Dajiexin. Thank you for attending today's conference. In the first quarter, we continued to optimize production and operation. The efficiency and output of Xinjiang's two multi-border bases have been improved. The total output of this quarter is 62,278 tons, which is more than the output value of our first quarter. In the fourth quarter, it increased to 1,264 tons, We have contributed 46% of the total output of the 1st quarter of 2021. Through the improvement of the results of the two factories and the steady growth, we have further accelerated the pace of the N-type transformation. The N-type product increased from 62% in December last year to 72% in March last year. Compared to the end of last year, the cost of our production in this quarter has decreased. The second quarter of 2023 has fallen by 2%. In the first quarter of 2023, the average production cost of the first quarter was $6.37 per kilogram. This quarter, we achieved $77,000,000 in tax-exempt and cash-exempt benefits. Even in the first quarter of 2024, the company maintained an objective $27 billion cash balance. The cash balance and one-week ticket balance totaled $29 billion. We expect that in 2024, the total production of the second quarter will be about 60,000 to 60,300,000 tons. We maintain full-fledged production and produce basic food in the first quarter. In the second quarter of 2020, we plan to complete the construction of a 5G project in Inner Mongolia and start production. And it is expected to be full-fledged in the last three quarters. We expect the total annual production in 2024 to be 28-30 million tons per year, which is 40% to 50% of the total growth in 2022. With more than 15 years of multi-border production experience, We will further optimize the operation efficiency, apply N-type raw materials in the proportion of the product combination, and look back at the industry level for a quarter of a year. During the spring and summer holidays, the raw material demand in the whole of February is rising. Due to the expected future of electronic companies, the opening and opening will be greatly improved, and the level of high-performing people will be maintained. The back-up factor of the low-price period caused the overall demand for fuel for the fuel supply to rise and fall. As a result, the total price of fuel remained at 65.7 yuan per kilogram for the N type and 55 to 60 yuan per kilogram for the P type. However, as of March, the price of fuel production is lower than expected. Fuel companies generally have a higher stock market share and are still in a fast rally. In March, the market situation changed significantly. The price of the entire industry chain, especially the material environment, will drop. Under the pressure of the stock market, the stock market will begin to reduce the opening power to complete the stock market connection and delay the delivery time of orders and materials. In April, the stock market accumulation problem of the stock market will further deteriorate. Customer orders and delivery time will be further slowed, and the price of materials will go down. As of last week, the price of the nuclear refinery has dropped to 54 yuan per kilogram. Basically, it has reached the level of the cash return of the entire industry. Based on the current market price, we believe that the entire mining industry is in a state of cash loss. The mining industry has experienced many ups and downs in the past. Based on our past experience, we believe that the low price of the industry at that time will eventually create a healthier market environment. When the cost is too high and the quality is not up to the market standard, the company will go bankrupt. In the end, after the bankruptcy, the industry will face rational production capacity and supply shortage. The production capacity process we are facing will also be fully resolved. We expect that the demand will return to normal after the process of supply and demand consumption in the short term. The long-term renewable energy policy will also continue to promote the expansion of light and electricity, 我们坚信光复行业终将回归理性的盈利水平 并带来更好的利润率 工资层面 我们认为维持健康的库存水平至关重要 因此到一季度末 我们的成品库存水平为两周左右的产量 处于行业的最低水平 现在请Anita替我翻译一下 好的谢谢