Daqo New Energy Corp. (NYSE:DQ) Q4 2022 Earnings Call Transcript

So we do believe now it’s really a good opportunity for the company to be very active in terms of our share buyback program. So, I think in terms — your comment in terms of the market cap will — while it does look like it’s a fairly high percentage, I think it’s because market cap is extremely low compared to our cash flow generation and also the capital that we have. So, that’s the .

Gary Zhou: Thanks a lot. And secondly, just a very quick question on the future capacity expansions. So, when we consider the kind of a possibility to expand it in other countries outside China, so if we go if we see kind of a more kind of a trade restrictions.

Longgen Zhang: Yes, we always research all the situation and the overseas capacity I think especially I think the market, global market is more than regional critical I think et cetera. So, yes, we will compare the reason we go to overseas, we have to considering the local resources and the people, the talent, and so on. So, definitely we do the study and .

Gary Zhou: Okay, thank you. That’s all my questions. I will pass it on. Thank you.

Operator: Our next question comes from Alan Hon from JPMorgan. Please go ahead with your question.

Alan Hon: Hi. Congratulations on great result. I just have one question on your CapEx. Can you share with us like what is the CapEx commitment for Phase 5A and Phase 5B? How much is already spent and how you expect to spend this year?

Ming Yang: Okay. So I have the numbers in R&D first and I’ll kind of translate to U.S dollar. So CapEx for 5A, total CapEx is around RMB9.5 billion or so. And then for 5B total CapEx is expected to be about RMB9 billion. So, really I guess 5A is around US$1.4 billion, and then 5B is around US$1.3 billion or so. And then actually for the full year of 2022, we spent approximately US$1.3 billion in CapEx. Most of it is related to Inner Mongolia 5A. But some of it was also . And in terms of CapEx for 2023, I think for the full year, we’re expecting roughly $1.2 billion of CapEx for the full year, of which roughly US$900 million to a US$1 billion is for in the Mongolia, around US$300 million is for our — the remaining payment for our Phase 5A Inner Mongolia.

Alan Hon: Got it. Thanks very much.

Operator: Ladies and gentlemen, at this time we’ll end today’s question-and-answer session. I’d like to turn the floor back over to Kevin for any closing remarks.

Kevin He: Thank you, everyone, again for participating to this conference call. Should you have any further questions, please don’t hesitate to contact us. Thank you and bye, bye.

Operator: Ladies and gentlemen, that does conclude today’s conference call. We do thank you for joining. You may now disconnect your lines.