Daqo Energy(SH:688303) Zheng Quan Shi Bao Wang·2025-08-26 12:50Core Viewpoint - The report highlights the challenges faced by Daqo Energy in the polysilicon market due to supply-demand imbalance, resulting in significant revenue decline and net losses, while also showcasing the company's strategic adjustments and strong cash reserves amid industry pressures [2][3][4]. Group 1: Company Performance - Daqo Energy reported a revenue of 1.47 billion yuan and a net loss of 1.15 billion yuan for the first half of 2025, primarily due to the sharp decline in polysilicon prices [2]. - The company's polysilicon production decreased by approximately 60% year-on-year to 50,821 tons, a strategic move to alleviate market supply pressure and avoid vicious competition [3]. - The unit cash cost decreased to 37.66 yuan per kilogram, a 6.6% year-on-year reduction, indicating improved operational efficiency [3]. Group 2: Financial Position - As of the end of the reporting period, Daqo Energy's total cash reserves, including bank acceptance bills and structured deposits, amounted to 12.09 billion yuan, with a low debt-to-asset ratio of 8.04% and no interest-bearing debt [3]. - The strong financial position provides a solid foundation for the company to navigate through industry cycles and offers strategic options at the bottom of the cycle [3]. Group 3: Industry Context - The Chinese government has shown a stronger commitment to eliminating irrational competition and addressing capacity mismatches in the polysilicon industry, which supports the "anti-involution" initiatives [3][4]. - The average price of N-type polysilicon has stabilized at 47,900 yuan per ton as of August 20, indicating a potential recovery in pricing due to the industry's response to policy changes [3]. - Daqo Energy remains optimistic about the future development of the photovoltaic industry and will dynamically assess production plans based on market conditions and polysilicon price trends [4].