(Yicai Global) March 16 -- Chinese polycrystalline silicon supplier Xinjiang Daqo New Energy is preparing to hand out CNY7.7 billion (USD1.1 billion) in dividends to shareholders this year, after logging a very profitable 2022, as the country’s photovoltaic industry goes from strength to strength.

Daqo New Energy will pay CNY36 (USD5.20) in cash for every 10 shares, the company said yesterday. Based on its closing price of CNY48.66 (USD7.05) today, the dividend yield rate is 7.4 percent and the highest among all the firms listed in Shanghai and Shenzhen to have announced their dividend plans for this year. No date for the pay out has been given yet.

The total dividend of CNY7.7 billion amounts to 40.2 percent of Daqo New Energy’s net profit last year which more than tripled from 2021 to CNY19.1 billion (USD2.8 billion), according to the Shihezi, Xinjiang Uyghur Autonomous Region-based polysilicon maker’s annual earnings report released yesterday. Revenue climbed by over two-and-a-half-fold to CNY30.9 billion.

Daqo New Energy has been reaping the benefits as robust demand and strong policy support in the country’s solar industry helped drive up the sales volume and price of polysilicon.

However, prices started to slide in the fourth quarter last year as more capacity came online. In the three months ended Dec. 31, Daqo New Energy’s net profit narrowed 27.4 percent from the previous quarter to CNY4 billion (USD579.8 million), while revenue slumped 24.9 percent to CNY6.3 billion, the report said.

And this year more capacity is due to flood the market. But Daqo New Energy anticipates solar installations to increase even faster, which will keep supply and demand in a tight balance, the report added.

Daqo New Energy’s share price [SHA:688303] closed down 0.4 percent at CNY48.66 (USD7.05) today, although earlier in the day it gained by 2.2 percent.

Editors: Dou Shicong, Kim Taylor