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Daqo New Energy Provides Update on Share Repurchase Program
Daqo New EnergyDaqo New Energy(US:DQ) Prnewswireยท2024-01-11 10:45

Core Viewpoint - Daqo New Energy Corp. has successfully executed a significant share repurchase program, reflecting confidence in its valuation and long-term growth potential in the solar PV industry [1][2]. Share Repurchase Program - The company initiated a US$700 million share repurchase program from November 7, 2022, to December 31, 2023 [1]. - By the end of 2023, Daqo repurchased 14.55 million ADSs, equivalent to 72.75 million ordinary shares, at an average price of $33.71 per ADS, totaling approximately $491 million, which is about 70.1% of the program's maximum amount [1]. - The total number of ordinary shares outstanding decreased from approximately 391.0 million at the end of 2022 to about 328.8 million by the end of 2023 [1]. Management Commentary - The Chairman and CEO highlighted that the repurchased shares represent 18.6% of the total shares outstanding at the end of 2022, indicating a belief that the shares are undervalued [2]. - The company remains optimistic about the long-term growth outlook of the solar industry, despite recent challenges [2]. - In Q4 2023, Daqo repurchased 6.45 million ADSs for approximately $162 million at an average price of $25.11 per ADS [2]. - The management emphasizes the importance of preserving capital for future growth while ensuring sustainable returns for investors [2]. Company Overview - Daqo New Energy Corp. is a leading manufacturer of high-purity polysilicon for the global solar PV industry, founded in 2007 [3]. - The company has a total polysilicon nameplate capacity of 205,000 metric tons and is recognized as one of the lowest-cost producers in the sector [3].