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Daqo New Energy Announces Unaudited Third Quarter 2024 Results

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2 years ago

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SHANGHAI, Oct. 30, 2024 /PRNewswire/ — Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy,” the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced its unaudited financial results for the third quarter of 2024.

Third Quarter 2024 Financial and Operating Highlights

Polysilicon production volume was 43,592 MT in Q3 2024, compared to 64,961 MT in Q2 2024Polysilicon sales volume was 42,101 MT in Q3 2024, compared to 43,082 MT in Q2 2024Polysilicon average total production cost(1) was $6.61/kg in Q3 2024 compared to $6.19/kg in Q2 2024Polysilicon average cash cost(1) was $5.34/kg in Q3 2024, compared to $5.39/kg in Q2 2024Polysilicon average selling price (ASP) was $4.69/kg in Q3 2024, compared to $5.12/kg in Q2 2024Revenue was $198.5 million in Q3 2024, compared to $219.9 million in Q2 2024Gross loss was $60.6 million in Q3 2024, compared to $159.2 million in Q2 2024. Gross margin was -30.5% in Q3 2024, compared to -72.4% in Q2 2024Net loss attributable to Daqo New Energy Corp. shareholders was $60.7 million in Q3 2024, compared to $119.8 million in Q2 2024Loss per basic American Depositary Share (ADS) (3) was $0.92 in Q3 2024, compared to $1.81 in Q2 2024Adjusted net loss (non-GAAP) (2) attributable to Daqo New Energy Corp. shareholders was $39.4 million in Q3 2024, compared to $98.8 million in Q2 2024Adjusted loss per basic ADS(3) (non-GAAP) (2) was $0.59 in Q3 2024, compared to $1.50 in Q2 2024EBITDA (non-GAAP) (2) was –$34.3 million in Q3 2024, compared to –$144.9 million in Q2 2024. EBITDA margin (non-GAAP) (2) was -17.3% in Q3 2024, compared to -65.9% in Q2 2024

Three months ended

US$ millions

except as indicated otherwise

September.

30, 2024

June. 30,

2024

September.

30, 2023

Revenues

198.5

219.9

484.8

Gross (loss)/profit

(60.6)

(159.2)

67.8

Gross margin

(30.5 %)

(72.4 %)

14.0 %

(Loss)/income from operations

(98.0)

(195.6)

22.5

Net loss attributable to Daqo New Energy Corp.

shareholders

(60.7)

(119.8)

(6.3)

Loss per basic ADS(3) ($ per ADS)

(0.92)

(1.81)

(0.09)

Adjusted net (loss)/income (non-GAAP)(2)

attributable to Daqo New Energy Corp. shareholders

(39.4)

(98.8)

44.0

Adjusted (loss)/earnings per basic ADS(3) (non-

GAAP)(2) ($ per ADS) 

(0.59)

(1.50)

0.59

EBITDA (non-GAAP)(2)

(34.3)

(144.9)

70.2

EBITDA margin (non-GAAP)(2)

(17.3 %)

(65.9 %)

14.5 %

Polysilicon sales volume (MT) 

42,101

43,082

63,263

Polysilicon average total production cost ($/kg)(1)

6.61

6.19

6.52

Polysilicon average cash cost (excl. dep’n) ($/kg)(1)

5.34

5.39

5.67

 

Notes:

(1)     Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable costs relating to production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation cost and non-cash share-based compensation cost, divided by the production volume in the period indicated.

(2)     Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For more information on these non-GAAP financial measures, please see the section captioned “Use of Non-GAAP Financial Measures” and the tables captioned “Reconciliation of non-GAAP financial measures to comparable US GAAP measures” set forth at the end of this press release.

(3)     ADS means American Depositary Share. One (1) ADS represents five (5) ordinary shares.

Management Remarks

Mr. Xiang Xu, CEO of Daqo New Energy, commented, “Entering the third quarter, China solar industry’s market conditions remained challenging, exacerbated by the overall over-supply in the industry. Market selling prices continued to be below production costs for the majority of industry players throughout the entire value-chain. Although this caused Daqo New Energy to sustain quarterly operating and net losses, our losses narrowed compared to the second quarter and we continued to maintain a strong and healthy balance sheet with no financial debt. At the end of the third quarter, we had a cash balance of $853 million, short-term investments of $245 million, bank note receivables of $83 million, and a fixed term bank deposit balance of $1.2 billion. To capitalize on higher interest rates compared to those of bank savings, we purchased short-term investments and fixed term bank deposits during the past two quarters. Overall, the company maintains strong liquidity with a balance of quick assets of $2.4 billion. These mainly consists of bank deposits or bank financial products that can be quickly converted to cash when necessary.

During the third quarter, we started maintenance of our facilities and adjusted our production utilization rate to 50% in light of weak market demand and to reduce our cash burn. The total production volume at our two polysilicon facilities for the quarter was 43,592 MT. Through continued investments in R&D and dedication to purity improvements at both facilities, our overall N-type product mix reached 75% during the quarter. Our Phase 5B, which started initial production in May and is still ramping up, reached 70% N-type in its product mix, strengthening our confidence in achieving 100% N-type by the end of next year. Despite lower utilization levels, we further reduced our cash cost to $5.34/kg, compared to $5.39/kg in the second quarter. However, unit production cost trended up 7% sequentially to an average of $6.61/kg, as a result of reduced production level which led to facility idle cost of approximately $0.55/kg.

“In light of the current market conditions, we expect our Q4 2024 total polysilicon production volume to be approximately 31,000 MT to 34,000 MT. As a result, we anticipate our full year 2024 production volume to be in the range of 200,000 MT to 210,000 MT.”

“During the third quarter, challenging market conditions forced more industry players to reduce production utilization rates and begin maintenance. Based on industry statistics, polysilicon supply in China decreased by 15% and 6% month-over-month in July and August, respectively, with the total polysilicon production volume falling below 130,000MT in August, the lowest year-to-date. This reduction eased inventory pressure with prices bottoming in the range of approximately RMB 35-40/kg. Despite relatively weak downstream wafer demand during the quarter, polysilicon prices stabilized after reaching their lowest level and have stopped declining. This price level was below the cash costs of even the tier-one players, and four consecutive months of cash losses have led all manufacturers to reassess their future strategy. In August and September, due to downstream customers’ effort to take advantage of low prices amid production cuts, polysilicon prices rebounded to approximately RMB 38-43/kg. However, industry polysilicon inventories remained significant at the end of the quarter. One month into the fourth quarter, the polysilicon industry is still rebalancing supply and demand and needs further production cuts and stronger end market demand to sustain a price recovery. The fourth quarter has historically seen strong new solar installations in China, and the aggressive stimulus packages unveiled in September and October to support the domestic economy might encourage investments from state-owned enterprises. In the medium to long-term, we believe the current low prices and market downturn will eventually result in a healthier market, as poor profitability, losses, and cash burn will lead to many industry players exiting the business, ultimately eliminating overcapacity and bringing the solar PV industry back to normal profitability and better margins.”

“This year is challenging for China’s solar PV industry. At this point, we may have reached a cyclical bottom but have yet to see a clear turning point in the market. As the price wars have undermined the healthy development of the industry, on October 14, the China Photovoltaic Industry Association (CPIA) convened a special conference attended by senior executives from major manufacturers in the industry, calling to strengthen self-discipline and reduce unbridled competition. While further details on promoting the sustainability of the industry still need to be discussed, we believe this is a positive signal toward market consolidation with higher-cost and inefficient manufacturers gradually phasing out capacity and exiting the business. On another positive note, on October 18, CPIA announced a “reference price” of RMB 0.68/W for modules, setting a floor for winning bids. On the demand side, new solar PV installations in China in the first nine months of 2024 reached 160.88GW, growing 24.8% year-over-year.”

“Overall, in the long-run, solar PV is expected to be one of the most competitive forms of power generation globally, and the continuous cost reductions in solar PV products and the resulting reductions in solar energy generation costs are expected to create substantial additional demand for solar PV. We are optimistic that we will capture the long-term benefits of the growing global solar PV market and maintain our competitive advantage by enhancing our higher-efficiency N-type technology and optimizing our cost structure through digital transformation and AI adoption. As one of the world’s lowest-cost producers with the highest quality N-type product, a strong balance sheet and no financial debt, we believe we are well positioned to weather the current market downturn and emerge as one of the leaders in the industry to capture future growth.”

Outlook and guidance

The Company expects to produce approximately 31,000 MT to 34,000 MT of polysilicon during the fourth quarter of 2024. The Company expects to produce approximately 200,000 MT to 210,000 MT of polysilicon for the full year of 2024, inclusive of the impact of the Company’s annual facility maintenance.

This outlook reflects Daqo New Energy’s current and preliminary view as of the date of this press release and may be subject to changes. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.

Third Quarter 2024 Results

Revenues

Revenues were $198.5 million, compared to $219.9 million in the second quarter of 2024 and $484.8 million in the third quarter of 2023. The decrease in revenues compared to the second quarter of 2024 was primarily due to a decrease in the ASP as well as sales volume.

Gross (loss)/profit and margin

Gross loss was $60.6 million, compared to $159.2 million in the second quarter of 2024 and gross profit of $67.8 million in the third quarter of 2023. Gross margin was -30.5%, compared to -72.4% in the second quarter of 2024 and 14.0% in the third quarter of 2023. For the third quarter, the company recorded $80.9 million in inventory impairment expenses, compared to $108 million in the second quarter. The increase in gross margin was primarily due to the inventories subject to larger amount of inventory write-down in the second quarter were subsequently sold in the third quarter of 2024.

Selling, general and administrative expenses

Selling, general and administrative expenses were $37.7 million, compared to $37.5 million in the second quarter of 2024 and $89.7 million in the third quarter of 2023. SG&A expenses during the third quarter included $18.9 million in non-cash share-based compensation expense related to the Company’s share incentive plans, compared to $19.6 million in the second quarter of 2024 and $46.3 million in the third quarter of 2023.

Research and development expenses

Research and development (R&D) expenses were $0.8 million, compared to $1.8 million in the second quarter of 2024 and $2.8 million in the third quarter of 2023. Research and development expenses can vary from period to period and reflect R&D activities that take place during the quarter.

(Loss)/income from operations and operating margin

As a result of the abovementioned, loss from operations was $98.0 million, compared to $195.6 million in the second quarter of 2024 and income from operations of $22.5 million in the third quarter of 2023.

Operating margin was -49.4%, compared to -89.0% in the second quarter of 2024 and 4.6% in the third quarter of 2023.

Net (loss)/income attributable to Daqo New Energy Corp. shareholders and earnings per ADS

As a result of the abovementioned, net loss attributable to Daqo New Energy Corp. shareholders was $60.7 million, compared to $119.8 million in the second quarter of 2024 and $6.3 million in the third quarter of 2023.

Loss per basic American Depository Share (ADS) was $0.92, compared to $1.81 in the second quarter of 2024, and $0.09 in the third quarter of 2023.

Adjusted (loss)/income (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted (loss)/earnings per ADS (non-GAAP)

As a result of the aforementioned, adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $39.4 million, compared to $98.8 million in the second quarter of 2024 and adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders of $44.0 million in the third quarter of 2023.

Adjusted loss per basic American Depository Share (ADS) was $0.59 compared to $1.50 in the second quarter of 2024, and adjusted earnings per basic ADS of $0.59 in the third quarter of 2023.

EBITDA (non-GAAP)  

EBITDA (non-GAAP) was –$34.3 million, compared to –$144.9 million in the second quarter of 2024 and $70.2 million in the third quarter of 2023. EBITDA margin (non-GAAP) was -17.3%, compared to -65.9% in the second quarter of 2024 and 14.5% in the third quarter of 2023.

Financial Condition

As of September 30, 2024, the Company had $853.4 million in cash, cash equivalents and restricted cash, compared to $997.5 million as of June 30, 2024 and $3,280.8 million as of September 30, 2023. As of September 30, 2024, the notes receivables balance was $83 million, compared to $80.7 million as of June 30, 2024 and $275.8 million as of September 30, 2023. Notes receivables represent bank notes with maturity within six months.

Cash Flows

For the nine months ended September 30, 2024, net cash used in operating activities was $376.5 million, compared to net cash provided by operating activities of $1,497.4 million in the same period of 2023.

For the nine months ended September 30, 2024, net cash used in investing activities was $1,747.7 million, compared to net cash used in investing activities of $954.3 million in the same period of 2023. The net cash used in investing activities in the three quarters of 2024 was primarily related to the purchases of short-term investments and fixed term deposits, which amounted to $1.4 billion.

For the nine months ended September 30, 2024, net cash used in financing activities was $48.5 million, compared to net cash used in financing activities of $602.0 million in the same period of 2023. The net cash used in financing activities in the three quarters of 2024 was primarily related to dividend payment and share repurchases by a subsidiary of the Company.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company’s results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company’s operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management’s use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company’s operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.

The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company’s core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.

A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document.

Conference Call

The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on October 30, 2024 (8:00 PM Beijing / Hong Kong time on the same day).

The dial-in details for the earnings conference call are as follows:

Participant dial in (U.S. toll free): +1-888-346-8982

Participant international dial in: +1-412-902-4272

China mainland toll free: 4001-201203

Hong Kong toll free: 800-905945

Hong Kong local toll: +852-301-84992

Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call.

Webcast link:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=ezkSfxNd

A replay of the call will be available 1 hour after the conclusion of the conference call through November 6, 2024. The dial in details for the conference call replay are as follows:

U.S. toll free: +1-877-344-7529

International toll: +1-412-317-0088

Canada toll free: 855-669-9658

Replay access code: 9504502

To access the replay through an international dial-in number, please select the link below.

https://services.choruscall.com/ccforms/replay.html

Participants will be asked to provide their name and company name upon entering the call.

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) (“Daqo” or the “Company”) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufactures, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world’s lowest cost producers of high-purity polysilicon.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “guidance” and similar statements. Among other things, the outlook for the fourth quarter and the full year of 2024 and quotations from management in these announcements, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company’s ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company’s ability to lower its production costs; and changes in political and regulatory environment. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

 

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statement of Operations

(US dollars in thousands, except ADS and per ADS data)

Three months ended

Nine months ended

Sep 30,

2024

Jun 30,

2024

Sep 30,

2023

Sep 30,

2024

Sep 30,

2023

 

Revenues

 

$ 198,496

 

$ 219,914

 

$ 484,839

 

$ 833,721

 

$ 1,831,397

Cost of revenues

(259,090)

(379,074)

(417,025)

(981,390)

(997,943)

Gross (loss)/profit

(60,594)

(159,160)

67,814

(147,669)

833,454

Operating expenses

Selling, general and administrative

  expenses

 

(37,727)

 

(37,526)

 

(89,697)

 

(113,686)

 

(174,238)

Research and development expenses

(813)

(1,836)

(2,758)

(4,187)

(6,866)

Other operating income/(expense)

1,092

2,903

47,112

2,389

47,789

Total operating expenses

(37,448)

(36,459)

(45,343)

(115,484)

(133,315)

(Loss)/income from operations

(98,042)

(195,619)

22,471

(263,153)

700,139

Interest income, net

1,604

8,730

13,832

22,603

38,529

Foreign exchange gain/(loss)

(752)

(1,406)

3,143

(2,427)

(16,571)

Investment income/(loss)

8,253

7,149

(165)

15,402

(143)

(Loss)/income before income taxes

(88,937)

(181,146)

39,281

(227,575)

721,954

Income tax benefit/(expense)

12,007

23,283

(21,438)

20,934

(147,236)

Net (loss)/income

(76,930)

(157,863)

17,843

(206,641)

574,718

Net (loss)/income attributable to non-

controlling interest

 

(16,206)

 

(38,083)

 

24,155

 

(41,608)

 

198,505

Net (loss)/income attributable to Daqo

New Energy Corp. shareholders

 

(60,724)

 

(119,780)

 

(6,312)

 

(165,033)

 

376,213

(Loss)/earnings per ADS

 

(0.92)

 

(1.81)

 

(0.09)

 

(2.50)

 

4.93

  Basic

  Diluted

(0.92)

(1.81)

(0.09)

(2.50)

4.89

 

Weighted average ADS outstanding

Basic

66,306,870

66,002,970

74,038,122

66,007,875

76,351,635

Diluted

66,306,870

66,002,970

74,152,055

66,007,875

76,665,986

 

 

Daqo New Energy Corp.

Unaudited Condensed Consolidated Balance Sheets

(US dollars in thousands)

Sep 30, 2024

Jun 30, 2024

Sep 30, 2023

ASSETS:

Current Assets:

Cash, cash equivalents and restricted cash

853,401

997,481

3,280,816

Short-term investments

244,982

219,469

2,749

Accounts and notes receivable

84,507

80,719

275,843

Inventories

206,877

191,969

129,067

Fixed term deposit within one year

1,215,165

1,168,032

–

Other current assets

292,610

272,404

150,633

Total current assets

2,897,542

2,930,074

3,839,108

Property, plant and equipment, net

3,903,436

3,781,330

3,237,803

Prepaid land use right

159,853

155,197

147,774

Fixed term deposit over one year

28,536

27,366

–

Other non-current assets

59,338

46,534

70,956

TOTAL ASSETS

7,048,705

6,940,501

7,295,641

Current liabilities:

 Accounts payable and notes payable

40,860

64,208

100,466

 Advances from customers-short term portion

56,240

59,015

252,262

 Payables for purchases of property, plant and

equipment

 

454,364

 

436,286

 

292,488

 Other current liabilities

77,597

82,086

165,102

Total current liabilities

629,061

641,595

810,318

 Advance from customers – long term portion

76,734

102,861

104,206

 Other non-current liabilities

18,489

18,012

33,526

TOTAL LIABILITIES

724,284

762,468

948,050

 

EQUITY:

Total Daqo New Energy Corp.’s shareholders’

  equity

 

4,705,832

 

4,593,003

 

4,733,218

Non-controlling interest

1,618,589

1,585,030

1,614,373

Total equity

6,324,421

6,178,033

6,347,591

TOTAL LIABILITIES & EQUITY

7,048,705

6,940,501

7,295,641

 

 

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

(US dollars in thousands)

For the nine months ended September 30,

2024

2023

Operating Activities:

Net (loss)/income

$ (206,641)

$ 574,718

Adjustments to reconcile net income to net cash provided by

operating activities

 

395,599

 

235,283

Changes in operating assets and liabilities

(565,447)

687,435

Net cash (used in)/provided by operating activities

(376,489)

1,497,436

Investing activities:

Purchases of property, plant and equipment

(325,558)

(887,875)

Purchases of land use right

(10,089)

(77,220)

Purchase and redemption of short-term investments and fixed-term

deposits

 

(1,412,100)

 

10,805

Net cash used in investing activities

(1,747,747)

(954,290)

Financing activities:

Net cash used in financing activities

(48,498)

(602,006)

Effect of exchange rate changes

(21,821)

(180,675)

Net decrease in cash, cash equivalents and restricted cash

(2,194,555)

(239,535)

Cash, cash equivalents and restricted cash at the beginning of the

period

 

3,047,956

 

3,520,351

Cash, cash equivalents and restricted cash at the end of the period

853,401

3,280,816

 

 

Daqo New Energy Corp.

Reconciliation of non-GAAP financial measures to comparable US GAAP measures

(US dollars in thousands)

Three months ended

Nine months ended

Sep 30, 2024  

Jun 30, 2024  

Sep 30,  

2023  

Sep 30,  

2024  

Sep 30,  

2023  

Net (loss)/income

(76,930)

(157,863)

17,843

(206,641)

574,718

Income tax (benefit)/expense

(12,007)

(23,283)

21,438

(20,934)

147,236

Interest income, net

(1,604)

(8,730)

(13,832)

(22,603)

(38,529)

Depreciation & Amortization

56,218

44,958

44,765

147,845

106,999

EBITDA (non-GAAP)

(34,323)

(144,918)

70,214

(102,333)

790,424

EBITDA margin (non-GAAP)

(17.3 %)

(65.9 %)

14.5 %

(12.3 %)

43.2 %

Three months ended

Nine months ended

Sep 30, 2024  

Jun 30, 2024  

Sep 30,  

2023  

Sep 30,  

2024  

Sep 30,  

2023  

Net (loss)/income attributable to Daqo

    New Energy Corp. shareholders

(60,724)

(119,780)

(6,312)

(165,033)

376,213

Share-based compensation

21,312

20,963

50,287

62,850

112,696

Adjusted net (loss)/income (non-GAAP)

attributable to Daqo New Energy Corp.

shareholders

(39,412)

(98,817)

43,975

(102,183)

488,909

Adjusted (loss)/earnings per basic ADS

    (non-GAAP)

($0.59)

 

($1.50)

 

$0.59

($1.55)

 

$6.40

Adjusted (loss)/earnings per diluted

    ADS (non-GAAP)

($0.59)

 

($1.50)

 

$0.59

($1.55)

 

$6.38

 

View original content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-third-quarter-2024-results-302291146.html

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Hearing Aids Market to Reach US$ 15.3 Bn by 2031, Driven by AI and Growing Accessibility | Wissen Research

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3 minutes ago

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October 22, 2026

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SHERIDAN, Wyo., Oct. 22, 2026 /PRNewswire/ — 

Hearing Aids Market Outlook: Innovation and Accessibility Drive Growth

“The hearing aids market is evolving rapidly as advances in AI, rechargeable technology, and over-the-counter devices make hearing care more accessible. With the global market projected to reach USD 15.3 billion by 2031, innovation and growing awareness of untreated hearing loss are expected to play a key role in shaping the industry,” said Mayur Jain, Research Expert at Wissen Research.

The need is large. The World Health Organization (WHO) estimates that more than 1.5 billion people worldwide live with hearing loss and about 430 million need rehabilitation for disabling hearing loss, and the report notes the number of people with hearing disorders could reach 2.5 billion by 2050. Aging populations are expanding the pool of users, while noise at work and in leisure activities is adding younger people to it. WHO calls untreated hearing loss a serious public health issue because it limits communication, education, work, and social life.

The report also points to a wide gap between the number of people with hearing loss and the number who use appropriate devices and treatment. That gap is where the industry is competing. Hearing aids have moved from simple sound amplifiers to connected, rechargeable, AI-enabled hearing aids, and a new over-the-counter category in the United States is changing how some adults buy them.

Get a Free Sample of This Report to Explore Key Findings and Data: https://www.wissenresearch.com/request-a-sample/?report=hearing-aids-market 

From Amplifiers to AI: Hearing Aids Now Process Speech, Noise, and Context in Real Time

Modern hearing aids are built from microphones, digital signal processors, amplifiers, receivers, and batteries, and the technology has moved from plain sound amplification to personalized, automatically adjusting listening. Directional microphones prioritize sound coming from certain directions, feedback cancellation and adaptive noise reduction clean up the signal, and processing can now tell speech from background noise and adjust amplification to the acoustic setting.

The hardest test is a crowded room, where background conversation and ambient noise make speech difficult to follow. The report notes that how well hearing aids cope with that depends on factors such as device design, which is why manufacturers keep working on speech enhancement. The race is visible in recent launches. In August 2026, three of the five companies the report names as top players, Sonova, Demant, and WS Audiology, each introduced a new platform built around AI that processes speech and surrounding sound in real time.

Over-the-Counter, Rechargeable, and Connected: Hearing Aids Become a Consumer Product

The second shift is about access. The U.S. Food and Drug Administration (FDA) has defined a category of over-the-counter (OTC) hearing aids for adults over 18 with mild to moderate hearing impairment, who can buy them in a store or online without a prescription or fitting appointment. The report sees this opening the door to self-fitting technology, easier-to-use devices, lower-priced products, and more consumer-oriented distribution. OTC devices are not right for every case, however, and children and people who need specialized assessment still require professional fitting.

Convenience features are changing expectations as well. Rechargeable hearing aids remove the need for frequent battery purchases, Bluetooth lets users stream calls and audio from compatible devices, and smartphone apps handle volume, listening preferences, and device settings. Remote fitting and teleaudiology services add support without a clinic visit. These features are especially helpful for older users and anyone who wants a simpler device.

What’s Fueling Growth in the Hearing Aids Market

Rising prevalence of hearing loss: Aging populations and noise exposure at work and in leisure activities are expanding the number of potential users.Greater awareness of hearing care: Consumers and health professionals increasingly recognize how hearing loss affects communication, social life, and quality of life, which encourages earlier evaluation and treatment.Better sound technology: Improvements in personalization, directionality, noise reduction, feedback control, and adaptability make it easier for users to follow sound in different listening environments.Rechargeable and smart devices: Rechargeable batteries, smartphone compatibility, wireless audio streaming, and easy pairing of devices remove daily frustrations.More ways to buy: Audiology clinics, specialty shops, online stores, and OTC devices, where regulations allow, are widening access.Demand for customized products: Manufacturers are offering more styles, form factors, and technologies to match individual needs.

Challenges Facing the Hearing Aids Market

The biggest challenge is the gap between those who have hearing loss and those who use appropriate devices and care. High costs of devices and fitting, limited coverage from public programs, low awareness, stigma, and limited access to hearing specialists can all slow adoption.

Results also vary from person to person, depending on the type and degree of hearing loss, the device chosen, the fitting method, and the listening environment. Even advanced devices can struggle in noise, and some users have discomfort, trouble handling small devices, or difficulty adapting to amplification. Manufacturers must also balance reliability and pricing with battery life, wireless technology, cybersecurity, safety, and regulatory compliance.

Recent Strategic Developments in the Hearing Aids Market

In August 2026, Sonova launched its Phonak EON hearing aid platform, featuring real-time artificial intelligence to improve speech understanding and reduce listening effort. The company positioned the smaller, lighter device in the premium segment, launching first in the United States, followed by Australia and key European markets.

In August 2026, Demant A/S of Denmark introduced Oticon Reveal, a platform with Dual AI technology that processes speech and contextual sounds simultaneously in real time. The platform also adds improved feedback control and enhanced wireless connectivity, aiming to improve speech understanding and deliver a more natural listening experience.

In August 2026, WS Audiology A/S of Denmark introduced Signia’s Multi-adaptive Xperience (MaX) platform, which integrates four deep neural networks to process speech, background noise, environmental sounds, and the wearer’s own voice simultaneously. It also offers enhanced group-conversation processing, improved computing power, rechargeable functionality, and expanded Bluetooth and Auracast connectivity.

All three launches lean on AI to separate speech from everything else, and all three add connectivity.

Key Insights from Hearing Aids Market Analysis

Hearing aid devices held a leading position by product type in 2025. The category covers behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal devices. Hearing implants, including cochlear implants and bone-anchored hearing systems, are the other category, serving patients who do not get enough benefit from conventional hearing aids, and their use depends on qualification, medical assessment, surgery, rehabilitation, and reimbursement.Digital hearing aids held a leading position by technology type in 2025, because digital signal processing allows personalized amplification across different frequencies and makes features such as feedback cancellation, directional microphones, and adaptive noise reduction possible. Analog devices are used less often today.North America is the leading region, supported by developed hearing care infrastructure, specialized distribution channels, advanced hearing technologies, and the U.S. OTC category.Asia Pacific is the fastest-growing region, supported by large and aging populations, rising awareness of hearing impairment, and gradually expanding hearing care facilities. China, India, and Japan are the most important national markets, each with a different level of healthcare access, purchasing power, device adoption, and audiology infrastructure.The market is moderately consolidated, with a small group of established manufacturers holding significant competitive positions, supported by established brands, extensive distribution networks, proprietary hearing technologies, and relationships with hearing care professionals. Smaller manufacturers and emerging consumer-focused companies compete in specialized and price-sensitive segments.

Key Players in the Hearing Aids Market

Leading companies in the hearing aids market are focusing on digital signal processing, rechargeable devices, wireless connectivity, personalized fitting, speech enhancement, and expansion across professional and consumer-oriented distribution channels.

The report names Sonova AG (Switzerland), Demant A/S (Denmark), WS Audiology A/S (Denmark), GN Store Nord A/S (Denmark), and Starkey Laboratories, Inc. (US) as the top five players, participating through hearing aid devices, digital sound-processing technologies, connectivity features, and hearing care solutions. Competition turns on sound quality, comfort, battery duration, connectivity, fitting accuracy, price, availability through distribution channels, and consumer support.

Other companies profiled in the report include Cochlear Limited (Australia), MED-EL Elektromedizinische Geräte Gesellschaft m.b.H. (Austria), RION Co., Ltd. (Japan), Eargo, Inc. (US), and Audina Hearing Instruments, Inc. (US). The report also covers Amplifon S.p.A., Audicus, Inc., Nuheara Limited, Earlens Corporation, Etymotic Research, Inc., IntriCon Corporation, hearX Group, and Sound World Solutions, LLC, among others.

Regional Analysis and Growth Opportunities

North America leads the hearing aids market. The report points to developed hearing care infrastructure, specialized distribution channels, and advanced hearing technologies in North America and Europe, and to the FDA’s OTC category, which created a prescription-free route to hearing aids for adults with mild to moderate hearing loss.

Asia Pacific is the fastest-growing region. Its large and aging population, rising awareness of hearing health, and gradually expanding healthcare infrastructure support demand, with China, India, and Japan the most important national markets because of their population size and rising need for hearing care services. WHO stresses that hearing loss should be treated as an important public health issue and that access to diagnosis, treatment, and assistive technologies should improve. Growth in specialized hearing clinics, hospitals, retailers, and online channels, along with improvements in digital, wireless, and rechargeable devices, is helping make hearing aids more accessible in the region, although high costs, low awareness, limited access to specialists, and differences in reimbursement continue to limit adoption.

Europe, Latin America, and the Middle East & Africa complete the report’s regional coverage.

Get a Custom Briefing on This Market for Your Business

Wissen Research’s healthcare technology analysts are available to walk through findings specific to your market, region, or competitive set.

Need Insights Specific to Your Business? Request a Customized Version of This Report: https://www.wissenresearch.com/request-customization/?report=hearing-aids-market 

Market Segmentation Snapshot

The global hearing aids market is segmented across product type, patient type, technology type, hearing loss type, distribution type, and region:

By Product Type:Hearing Aid Devices (Receiver-in-the-Ear/RIC Hearing Aids, Behind-the-Ear/BTE Hearing Aids, Canal Hearing Aids, In-the-Ear/ITE Hearing Aids, Other Hearing Aid Devices)Hearing Implants (Cochlear Implants, Bone-Anchored Hearing Systems)By Patient Type:AdultsPaediatricsBy Technology Type:DigitalAnalogBy Hearing Loss Type:Sensorineural Hearing LossConductive Hearing LossBy Distribution Type:Audiology and ENT Hospitals & ClinicsRetail & Pharmacy StoresOnline SalesBy Region:North AmericaEuropeAsia-PacificLatin AmericaMiddle East & Africa

Frequently Asked Questions

Q: What is the size of the hearing aids market? 
A: The global hearing aids market is estimated at USD 10.9 billion in 2026 and is projected to reach USD 15.3 billion by 2031.

Q: What is the growth rate of the hearing aids market? 
A: The hearing aids market is projected to grow at a CAGR of 7% between 2026 and 2031.

Q: What are hearing aids? 
A: Hearing aids are electronic devices that capture, process, amplify, and transmit sound, making it audible to people with different degrees and types of hearing loss. The main styles are behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal devices, and many now include digital processing, rechargeable batteries, Bluetooth connectivity, and AI-assisted sound processing.

Q: How many people have hearing loss? 
A: According to the World Health Organization, more than 1.5 billion people worldwide live with hearing loss, and about 430 million need rehabilitation for disabling hearing loss.

Q: What are over-the-counter hearing aids? 
A: In the United States, the FDA has defined a category of over-the-counter hearing aids for adults over 18 with mild to moderate hearing impairment, who can buy them in a store or online without a prescription. They are not suitable for all types and degrees of hearing loss, and children and people who need specialized assessment still require professional diagnosis and fitting.

Q: Which technology leads the hearing aids market? 
A: Digital hearing aids held a leading position by technology type in 2025, because digital signal processing allows personalized amplification and features such as feedback cancellation, directional microphones, and adaptive noise reduction.

Q: Which product type leads the hearing aids market? 
A: Hearing aid devices, which include behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal styles, held a leading position by product type in 2025, ahead of hearing implants such as cochlear implants.

Q: Which region leads the hearing aids market? 
A: North America is the leading region in the hearing aids market, while Asia Pacific is the fastest-growing region through 2031.

Q: Who are the top players in the hearing aids market? 
A: Leading companies in the hearing aids market include Sonova AG, Demant A/S, WS Audiology A/S, GN Store Nord A/S, and Starkey Laboratories, Inc.

The report describes a shift from amplifying sound to understanding it, and from a product sold through clinics to one that can also be bought off the shelf. For manufacturers, the work ahead is delivering hearing aids that perform in noisy real-world settings, stay affordable, and reach the many people who have hearing loss but do not yet use a device.

Get the Complete Hearing Aids Market Report – Forecasts, Insights & Growth Opportunities: https://www.wissenresearch.com/market-research-reports-pricings/hearing-aids-market

Expert Profile | Mayur Jain, Wissen Research 

Mayur Jain is a Research Expert at Wissen Research with multidomain expertise with more than 12+ years of experience in market research industry. 

Email: mayur@wissenresearch.com
LinkedIn:  https://www.linkedin.com/in/mayur-jain-0190542a/ 

About Wissen Research

Wissen Research is a global market intelligence and consulting firm specializing in healthcare, life sciences, technology, and emerging industries. The company provides data-driven insights, strategic market analysis, and industry forecasts to help organizations make informed business decisions and identify new growth opportunities across global markets

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AHN Cancer Center Expands Successful Screening Initiative with New Workplace Program for Regional Employers

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3 minutes ago

on

October 22, 2026

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Dollar Bank becomes first participating employer as AHN brings life-saving cancer screenings directly to the workplace

PITTSBURGH, Oct. 22, 2026 /PRNewswire/ — Building on the success of its longstanding cancer screening program, Allegheny Health Network (AHN) Cancer Center is launching a new workplace cancer screening initiative designed to bring convenient, potentially life-saving cancer screenings directly to employees across western Pennsylvania.

The new program, part of the AHN Cancer Center’s S.T.O.P. Cancer initiative, will partner with large employer groups to offer on-site cancer screening events that remove barriers to preventive care and help identify cancer at its earliest, most treatable stages. S.T.O.P. Cancer stands for Screen, Test, Outsmart and Prevent Cancer.

Dollar Bank is the first employer to participate in the initiative. On Oct. 29, AHN Cancer Center clinicians will host an exclusive cancer screening event for eligible Dollar Bank employees, offering convenient access to screenings and educational resources focused on cancer prevention and early detection. AHN Cancer Center leaders are also working with the Pittsburgh Firefighters Union to schedule a workplace screening event in early 2027.

The new effort expands on AHN’s successful comprehensive cancer screening program, which has provided thousands of screenings across western Pennsylvania through dedicated screening clinics, community events and partnerships designed to increase access to preventive care. AHN has hosted large-scale screening events throughout the region, including programs with community organizations and professional sports partners, helping connect residents with screenings they might otherwise delay or forgo.

“Early detection remains one of the most powerful tools we have in the fight against cancer,” said David Bartlett, MD, director of the AHN Cancer Center. “By bringing screening services directly to workplaces, we are making it easier for people to prioritize their health, access recommended screenings and identify concerns before symptoms develop. This initiative reflects our commitment to meeting people where they are and helping more individuals take proactive steps to prevent cancer or detect it early.”

Workplace screening events will be customized based on employee demographics, screening eligibility guidelines and organizational needs. In addition to screening opportunities, participants will receive education about cancer prevention, risk factors and follow-up care resources.

“At Dollar Bank, we are committed to supporting the health and well-being of our employees,” said Jim McQuade, president and CEO of Dollar Bank. “Partnering with AHN Cancer Center to bring cancer screenings directly to our workplace makes preventive care more convenient and accessible for our team members. We are proud to be the first employer participating in this innovative program and to help raise awareness about the importance of early detection.”

Dollar Bank and AHN officials hope the event will serve as a model for future employer partnerships aimed at increasing access to cancer screenings throughout the region.

Cancer remains one of the leading causes of death in the United States, yet many recommended screenings continue to be underutilized due to challenges related to transportation, scheduling and awareness. AHN’s workplace model aims to eliminate many of those barriers by offering screening opportunities in convenient, familiar settings.

“Our S.T.O.P. Cancer initiative is focused on reducing the burden of cancer through prevention and early detection,” said Dr. Bartlett. “Expanding access through employer partnerships is a natural next step in that mission and an important opportunity to improve health outcomes across our communities.”

AHN expects to add additional employer partners throughout 2027 as the program grows.

About the Allegheny Health Network – and the AHN Cancer Center
Allegheny Health Network is a western Pennsylvania-based integrated healthcare system that serves patients from across a five-state region that includes western Pennsylvania and the adjacent regions of Ohio, West Virginia, Maryland, and New York. The Network’s Cancer Center employs more than 200 physicians and 500 oncology professionals who provide a complete spectrum of oncology care at 24 affiliated oncology clinics, including access to state-of-the-art technologies and new therapies being explored in hundreds of clinical cancer trials. The Cancer Center has the only cancer program in the Pittsburgh region accredited as an Integrated Network Cancer Program by the American College of Surgeons Commission on Cancer, and its radiation oncology program is the largest in the country accredited by the American Society for Radiation Oncology. AHN Cancer Center is a Quality Oncology Practice Initiative certified practice, and is accredited by the Foundation for Accreditation of Cellular Therapy, National Accreditation Program for Breast Centers and the National Accreditation Program for Rectal Cancer.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ahn-cancer-center-expands-successful-screening-initiative-with-new-workplace-program-for-regional-employers-302917237.html

SOURCE Allegheny Health Network

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BRG Communications Adds Four Senior Leaders Amid Continued Agency Growth in Healthcare Communications

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3 minutes ago

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October 22, 2026

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New appointments expand client leadership and deepen expertise in research, insights and digital strategy

ALEXANDRIA, Va., Oct. 22, 2026 /PRNewswire/ — BRG Communications (BRG), an award-winning healthcare public relations agency based in the Washington, D.C. area, announced four senior appointments: Caitlin Chase and Leanne Stone as vice president, managing directors, Brandon Kenah as director of research, insights and measurement, and Vijaya Singh as director of digital strategy and integrated visibility. The hires add experienced client leadership, deepen the agency’s research, insights and digital expertise, and support its continued growth.

These appointments come as BRG Communications celebrates its 25th anniversary, following six consecutive years of double-digit revenue growth and a 38% increase in team size over the past year. These investments reflect the agency’s commitment to building on its established strengths, creating opportunities for its tenured team members and bringing deeper expertise to the organizations it serves.

“One of the most rewarding parts of our growth is the opportunity it creates — for our people to expand their careers, for our clients to benefit from greater depth of expertise and for BRG to take on increasingly complex challenges,” said Jane Barwis, president and CEO of BRG Communications. “We’re intentionally bringing in experienced leaders who add new perspectives and capabilities while creating room for our long-standing team members to grow into expanded roles. It’s about building on the strengths that got us here while continually raising what we’re able to deliver.”

Expanding Senior Client Leadership

Caitlin Chase, Vice President, Managing Director, brings extensive experience guiding strategic communications, reputation and stakeholder engagement for organizations working at the intersection of healthcare, innovation and social impact. Her background includes leadership roles at XPRIZE Foundation and the American Heart Association, where she helped translate complex issues into compelling narratives and integrate communications programs. Chase brings expertise in strategic positioning, thought leadership and mission-driven communications, strengthening BRG’s counsel to organizations navigating complex challenges and working to advance meaningful change.

Leanne Stone, Vice President, Managing Director, brings deep experience leading integrated marketing and communications programs for global healthcare and consumer brands. Most recently with Burson, Stone has led multidisciplinary teams and large-scale campaigns for clients including Novo Nordisk on drugs including Ozempic and Wegovy. Her expertise in brand strategy, creative development, earned and paid media, and integrated communications strengthens BRG Communications’ ability to develop programs that connect audience insights, compelling storytelling, and measurable business outcomes.

Together, Chase and Stone strengthen BRG’s senior client leadership, providing additional strategic counsel, cross-disciplinary expertise and capacity to support the agency’s expanding portfolio of clients.

Deepening Research, Insights and Digital Expertise

Brandon Kenah, Director of Research, Insights and Measurement, brings more than a decade of experience using research, analytics and measurement to inform communications strategy across healthcare, life sciences and consumer industries. Previously with Lippe Taylor and Burson, Kenah has led research and audience intelligence programs that shape brand positioning, messaging and campaign development. At BRG, he will help deepen the integration of research and insights across client work, strengthening the foundation for strategic recommendations, identifying new opportunities and advancing the agency’s ability to measure communications effectiveness.

Vijaya Singh, Director of Digital Strategy, brings more than 10 years of experience developing data-driven digital communications and integrated campaigns for healthcare, technology and emerging brands. Her background includes roles with Mount Sinai, Zeno Group, and D2 Creative, where she developed digital strategies, audience engagement programs, and performance-driven campaigns. At BRG, Singh will deepen the agency’s digital strategy expertise, helping clients connect audience intelligence, creative content and emerging technologies to build engagement and deliver measurable results.

The additions of Kenah and Singh build on BRG Communications’ established research and digital offerings, bringing added leadership, specialized expertise and new approaches that can be applied across the agency’s client portfolio.

As BRG marks 25 years of Communications for Better Living, these investments underscore the agency’s commitment to growing with intention, bringing together the talent, experience and capabilities to support its people, strengthen client partnerships and deliver work that makes a difference.

About BRG Communications

Founded in 2001, BRG Communications is a top-ranked PR agency, delivering award-winning communications dedicated to Communications for Better Living. Specializing in healthcare, wellness and organizations advancing better living, BRG partners with corporations, associations and nonprofit organizations to build reputations, inspire action and create meaningful impact. Recognized as PRWeek’s 2026 Outstanding Small Agency, BRG combines deep sector knowledge, strategic creativity and a commitment to its clients and people. Learn more at www.brgcommunications.com.

Media Contact:
Maureen Higgins, Vice President
BRG Communications
mhiggins@brgcommunications.com
703-739-8366

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SOURCE BRG COMMUNICATIONS

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