Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $75.2 million, down from $123.9 million in Q1 2025 and $219.9 million in Q2 2024, primarily due to decreased sales volume [16][17] - Gross loss was $81.4 million, with a gross margin of negative 108%, compared to negative 65.8% in Q1 2025 and negative 72% in Q2 2024 [17] - Net loss attributable to shareholders was $76.5 million, compared to $71.8 million in Q1 2025 and $119.8 million in Q2 2024 [19] - Cash balance as of June 30, 2025, was $599 million, down from $792 million as of March 31, 2025 [21] Business Line Data and Key Metrics Changes - Total production volume for the quarter was 29,012 metric tons, within guidance, but sales volume decreased to 18,126 metric tons from 28,008 metric tons in Q1 2025 [8][9] - Polysilicon unit production cost decreased by 4% sequentially to an average of $7.26 per kilogram [10] Market Data and Key Metrics Changes - Poly market prices fell from RMB 39-45 per kilogram in April to RMB 32-35 per kilogram by June [11] - A surge in installations in China occurred in May with 93 gigawatts added, but installations dropped to 14 gigawatts in June [10] Company Strategy and Development Direction - The company aims to enhance efficiency through digital transformation and AI adoption, positioning itself as a low-cost producer [14] - The company is optimistic about the long-term growth of the solar PV industry and is focused on navigating current market challenges [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the solar PV industry is facing challenges due to overcapacity and low prices, but they expect a recovery supported by government initiatives [6][12] - The company anticipates total polysilicon production volume for 2025 to be approximately 110,000 to 130,000 metric tons [10] Other Important Information - The company has no financial debt and maintains a strong balance sheet, providing confidence to navigate market conditions [7][8] - A new share repurchase program of $100 million was authorized, reflecting management's optimism about future industry conditions [38] Q&A Session Summary Question: Can you share updates on policy development and product prices? - Management discussed a recent symposium involving government officials and industry players aimed at curbing irrational competition and promoting high-quality development [27][28] Question: How sustainable are the higher pricing levels? - Management indicated that selling below cash cost is unsustainable and emphasized the need for industry self-regulation [32] Question: What is the outlook for industry production volumes? - Management expects production volumes to be around 100,000 to 110,000 metric tons per month, balanced with demand [32] Question: What is the strategy regarding the share repurchase program? - The company authorized a $100 million share repurchase program to strengthen shareholder confidence and reflect optimism about the industry's future [38] Question: How will the company manage inventory levels? - Management stated that they will adjust utilization rates to manage inventory and are actively participating in the futures market to mitigate price volatility [52]

Financial Data and Key Metrics Changes - Company recorded revenues of $75.2 million for Q2 2025, a decrease from $123.9 million in Q1 2025 and $219.9 million in Q2 2024 [17] - Gross loss was $81.4 million, with a gross margin of negative 108%, compared to negative 65.8% in Q1 2025 and negative 72% in Q2 2024 [18] - Net loss attributable to shareholders was $76.5 million, with a loss per basic ADS of $1.14, compared to $1.07 in Q1 2025 and $1.81 in Q2 2024 [20] Business Line Data and Key Metrics Changes - Total production volume for the quarter was 29,012 metric tons, with sales volume decreasing to 18,126 metric tons from 28,008 metric tons in Q1 2025 [10] - Cash cost per kilogram decreased by 4% to $5.12, while polysilicon unit production cost also decreased by 4% to $7.26 per kilogram [11][12] Market Data and Key Metrics Changes - Poly market prices trended downward, falling from RMB39-45 per kilogram in April to RMB32-35 per kilogram by June [13] - Despite a surge in installations in May, installations plummeted to 14 gigawatts in June, indicating volatility in demand [12] Company Strategy and Development Direction - Company aims to enhance efficiency through digital transformation and AI adoption, positioning itself as a low-cost producer with high-quality products [16] - The company is optimistic about the long-term growth of the solar PV industry and is focused on navigating current market challenges [16] Management Comments on Operating Environment and Future Outlook - Management noted that the solar PV industry is facing challenges due to overcapacity and low prices, but they expect a recovery supported by government initiatives [8][15] - The company anticipates a production volume of approximately 27,000 to 30,000 metric tons for 2025, with a full-year guidance of 110,000 to 130,000 metric tons [12] Other Important Information - The company has a strong balance sheet with no financial debt and a cash balance of CNY599 million as of June 30, 2025 [9] - A new share repurchase program of $100 million was authorized, reflecting management's confidence in the industry's future [40] Q&A Session Summary Question: Can you share updates on policy development regarding the consolidation fund? - Management discussed recent government meetings aimed at curbing irrational competition and promoting industry self-regulation [29][30] Question: How sustainable do you think the higher pricing can be with anti-involution initiatives? - Management expressed that selling below cash cost is unsustainable and emphasized the need for industry players to align on pricing above production costs [34][35] Question: What is the strategy behind the recently announced share repurchase program? - The program aims to strengthen shareholder confidence and reflects optimism about the industry's future [40][41] Question: How do you see the balance between price and inventory dynamics? - Management indicated that industry policies will help balance supply and demand, and they are actively managing inventory levels [55][56] Question: Will the company sell more polysilicon in Q3? - Management confirmed that they intend to adjust sales strategies based on market conditions and regulatory developments [70][71]

Financial Performance - Daqo New Energy recorded quarterly operating and net losses due to continued challenges in the solar PV industry with declining market prices[5] - Revenue decreased to $752 million in Q2 2025, compared to $1239 million in Q1 2025, a decrease of approximately 393%[10] - Gross loss was $814 million in Q2 2025, compared to $815 million in Q1 2025, with gross margin at -1083% and -658% respectively[10] - Net loss attributable to Daqo New Energy Corp shareholders was $765 million in Q2 2025, compared to $718 million in Q1 2025[10] - The company maintained a strong cash balance of $599 million, short-term investments of $419 million, bank notes receivables of $49 million, and fixed term bank deposit balance of $994 million as of June 30, 2025, totaling $206 billion in financial bank deposit and investment assets[5] Operational Highlights - The company operated at a reduced utilization rate of approximately 34% of its nameplate capacity[5] - Total polysilicon production volume for the quarter was 26,012 MT, within the guidance range of 25,000 MT to 28,000 MT[5] - Polysilicon sales volume decreased to 18,126 MT in Q2 2025 from 28,008 MT in Q1 2025[5] - Polysilicon average selling price (ASP) was $419/kg in Q2 2025, compared to $437/kg in Q1 2025[10] - The company expects its total polysilicon production volume in Q3 2025 to be approximately 27,000 MT to 30,000 MT, and full year 2025 production volume to be in the range of 110,000 MT to 130,000 MT[5]

Core Viewpoint - Daqo New Energy Corp. reported significant financial losses in Q2 2025 due to declining market prices and reduced sales volume in the solar PV industry, while maintaining a strong balance sheet with no financial debt [1][7][9]. Financial Performance - Revenues for Q2 2025 were $75.2 million, down from $123.9 million in Q1 2025 and $219.9 million in Q2 2024 [3][12]. - Gross loss was $81.4 million with a gross margin of -108.3%, compared to a gross loss of $81.5 million and a gross margin of -65.8% in Q1 2025 [3][13]. - Net loss attributable to shareholders was $76.5 million, an increase from $71.8 million in Q1 2025 [3][17]. - Adjusted net loss (non-GAAP) was $57.9 million, compared to $53.2 million in Q1 2025 [3][19]. - EBITDA (non-GAAP) was -$48.2 million with an EBITDA margin of -64.0%, compared to -48.4 million and -39.1% in Q1 2025 [3][21]. Operational Highlights - Polysilicon sales volume decreased to 18,126 MT in Q2 2025 from 28,008 MT in Q1 2025, while production volume was 26,012 MT [3][7]. - The average total production cost of polysilicon was $7.26/kg, down from $7.57/kg in Q1 2025, while the average cash cost was $5.12/kg, down from $5.31/kg [3][5]. - The company operated at a reduced utilization rate of approximately 34% of its nameplate capacity due to market conditions [7]. Industry Context - The solar PV industry faced challenges with declining prices and high inventory levels, leading to operating and net losses for Daqo New Energy [7][9]. - Despite the downturn, there was a surge in solar installations in China, with a record 93GW added in May 2025, although installations fell to 14GW in June [7][8]. - The Chinese government is taking measures to address overcapacity and promote high-quality development in the solar PV sector, which may lead to a recovery in prices [8][9]. Future Outlook - The company expects to produce approximately 27,000 MT to 30,000 MT of polysilicon in Q3 2025 and a total of 110,000 MT to 130,000 MT for the full year [10][11]. - Daqo New Energy is positioned to capitalize on long-term growth in the solar PV market by enhancing its technology and optimizing its cost structure [9].

SHANGHAI, Aug. 12, 2025 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for second quarter of 2025 ended June 30, 2025 before U.S. markets open on Tuesday, August 26, 2025. The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on Tuesday, August 26, 2025 (8:00 PM Beijing / Hong ...

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 manufacturers, 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 produ ...

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Supply-side reform in China is evolving, focusing on mid-to-downstream sectors rather than solely on upstream sectors as in previous reforms [2] - The current reform approach is more nuanced and balanced, addressing advanced capacity rather than outdated capacity [2] - The report anticipates a slowdown in China's real GDP growth to below 4.5% in the second half of 2025 due to diminishing export momentum and fiscal easing [11] Summary by Sections Supply-Side Reform - The current supply-side reform is characterized as "new wine in an old bottle," emphasizing the importance of demand for economic reflation [2] - The targeted sectors have shifted from SOE-dominated to POE-dominated firms, indicating a change in ownership dynamics [2] Economic Growth - China's real GDP growth is projected to decline to less than 4.5% in the latter half of 2025, influenced by fading export growth and fiscal easing measures [11] - The economy is expected to remain on a slow reflation path, indicating ongoing challenges in achieving robust growth [11] Housing Market - The housing market continues to face challenges, with elevated inventory levels in lower-tier cities and a persistent decline in housing prices [21] - The National Development and Reform Commission (NDRC) is considering expanding funding channels to address housing inventory issues, which may depend on various factors including funding size and developer selection [22] Fiscal Policy - The fiscal space in China is becoming more constrained, with major tax revenues and land sales underperforming against budget expectations [38][43] - The report suggests that China needs not only new stimulus measures but also a reformed growth algorithm to address structural issues in the economy [44] Reflation Strategy - The report outlines a "5R" reflation strategy, which includes measures such as expanding fiscal deficits, monetary easing, and social welfare spending to stimulate consumption [47] - The strategy aims for a gradual and uneven progress towards economic recovery, with various policy measures expected to be implemented by the end of 2025 [47]

Financial Data and Key Metrics Changes - In Q1 2025, revenues decreased to $123.9 million from $195.4 million in Q4 2024 and $415 million in Q1 2024, primarily due to a decrease in sales volume [17][18] - Gross loss was $81.5 million, compared to a gross loss of $65.3 million in Q4 2024 and a gross profit of $72 million in Q1 2024, resulting in a negative gross margin of 66% [18][21] - Net loss attributable to shareholders was $71.8 million, an improvement from a net loss of $180 million in Q4 2024, but down from a net income of $15.5 million in Q1 2024 [21][22] Business Line Data and Key Metrics Changes - The company operated at a reduced utilization rate of approximately 33% of nameplate capacity, with total production volume at 24,810 metric tons, slightly below guidance [9][10] - Polysilicon unit production costs increased by 11% sequentially to an average of $7.157 per kilogram, while cash costs increased by 5% to $5.31 per kilogram [11][12] Market Data and Key Metrics Changes - China's new solar PV installations reached 59.71 gigawatts in Q1 2025, reflecting a robust year-over-year growth of 30.5% [15] - Domestic polysilicon production volume was reported at 105,500 metric tons in March, with January and February below 100,000 metric tons [12][13] Company Strategy and Development Direction - The company aims to enhance its competitive edge by improving efficiency and optimizing cost structures through digital transformation and AI adoption [16] - The transition to a market-based pricing mechanism for renewable energy is expected to promote sustainable development in the industry [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the solar PV industry is facing significant challenges due to overcapacity and low polysilicon prices, but believes that ongoing losses will lead to a healthier industry in the long term [9][15] - The company remains confident in its ability to weather the current market downturn and emerge as a leader in the industry [16] Other Important Information - As of March 31, 2025, the company had a cash balance of $792 million and no financial debt, providing ample liquidity [9][22] - The company expects total production volume in Q2 2025 to be in the range of 25,000 to 28,000 metric tons [12] Q&A Session Summary Question: When do you think overcapacity will be eliminated and which players might exit the market? - Management indicated that rebalancing of supply and demand will take longer than expected, with no companies completely exiting the market yet, but many are lowering utilization rates or undergoing temporary shutdowns [26][28] Question: What is the expected trend for industry utilization rates throughout the year? - Management expects the industry utilization rate to remain between 40% to 50% in the near term, with potential for slight increases depending on market conditions [30][32] Question: What is the strategy regarding ADR delisting risk? - Management acknowledged the risk of ADR delisting but considers it a low probability, while remaining vigilant and monitoring regulatory developments [40][42] Question: What is the outlook on cash costs for the subsequent quarters? - Management indicated that cash costs may remain similar to slightly lower in Q2 2025, depending on production levels, with current costs impacted by maintenance of facilities [45][50]

Financial Data and Key Metrics Changes - In Q1 2025, revenues decreased to $123.9 million from $195.4 million in Q4 2024 and $415 million in Q1 2024, primarily due to a decrease in sales volume [17][18] - Gross loss was $81.5 million, compared to a gross loss of $65.3 million in Q4 2024 and a gross profit of $72 million in Q1 2024, resulting in a negative gross margin of 66% [18] - Net loss attributable to shareholders was $71.8 million, an improvement from a net loss of $180 million in Q4 2024 but a decline from net income of $15.5 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - The company operated at a reduced utilization rate of approximately 33% of nameplate capacity, with total production volume at polysilicon facilities at 24,810 metric tons, slightly below guidance [11] - Polysilicon unit production costs increased by 11% sequentially to an average of $7.157 per kilogram, while cash costs increased by 5% to $5.31 per kilogram [12] Market Data and Key Metrics Changes - China's new solar PV installations reached 59.71 gigawatts in Q1 2025, reflecting a robust 30.5% year-over-year growth [15] - Domestic polysilicon production volume was reported at 105,500 metric tons in March, with lower production levels in January and February [12] Company Strategy and Development Direction - The company aims to enhance its competitive edge by improving efficiency and optimizing cost structures through digital transformation and AI adoption [16] - The transition to a market-based pricing mechanism for renewable energy is expected to promote sustainable development in the solar PV industry [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in the solar PV industry, including overcapacity and low polysilicon prices, but expressed confidence in the company's strong balance sheet and ability to navigate the downturn [9][10] - The company anticipates that ongoing losses will lead to the exit of less competitive players, ultimately resulting in a healthier industry [15] Other Important Information - The company maintains a strong liquidity position with a cash balance of $792 million and no financial debt as of March 31, 2025 [10] - The introduction of a market-based reform policy for new energy on-grid tariffs is expected to impact future electricity prices and revenue generation [13] Q&A Session Summary Question: When does the company expect overcapacity to be eliminated? - Management indicated that rebalancing of supply and demand will take longer than expected, with no companies completely exiting the market yet [27][28] Question: What is the expected trend for industry utilization rates? - The current industry utilization rate is between 40% to 50%, with expectations for gradual improvement but potential downside risks due to policy changes and external tensions [30][32] Question: What is the strategy regarding ADR delisting risk? - Management acknowledged the risk of ADR delisting but considers it a low probability, while monitoring market and regulatory developments closely [40][41] Question: What is the outlook on cash costs for subsequent quarters? - Cash costs are expected to remain similar to slightly lower in Q2 2025, depending on production levels, with current maintenance costs impacting the figures [44][49]

Financial Data and Key Metrics Changes - In Q1 2025, revenues decreased to $123.9 million from $195.4 million in Q4 2024 and $415 million in Q1 2024 [16] - Gross loss was $81.5 million, compared to a gross loss of $65.3 million in Q4 2024 and a gross profit of $72 million in Q1 2024 [17] - Gross margin was negative 66%, worsening from negative 33% in Q4 2024 and positive 17.4% in Q1 2024 [17] - Net loss attributable to shareholders was $71.8 million, an improvement from $180 million in Q4 2024 but a decline from net income of $15.5 million in Q1 2024 [19] - EBITDA was negative $48 million, compared to negative $236 million in Q4 2024 and positive $76.9 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Total production volume for polysilicon was 24,810 metric tons, slightly below the guidance range of 25,000 to 28,000 metric tons [9] - Polysilicon unit production costs increased by 11% sequentially to an average of $7.157 per kilogram [9] - Cash costs increased by 5% to $5.31 per kilogram due to maintenance and facility-related costs [10] Market Data and Key Metrics Changes - China's new solar PV installations reached 59.71 gigawatts in Q1 2025, representing a 30.5% year-over-year growth [13] - Domestic polysilicon production volume was 105,500 metric tons in March, with January and February below 100,000 metric tons [10] - Polysilicon prices remained stable at approximately RMB 37 to RMB 42 per kilogram throughout the quarter [12] Company Strategy and Development Direction - The company aims to enhance its competitive edge by improving efficiency and optimizing cost structures through digital transformation and AI adoption [14] - The transition to a market-based pricing mechanism for renewable energy is expected to promote sustainable development in the industry [12] Management's Comments on Operating Environment and Future Outlook - The solar PV industry is currently facing challenges due to overcapacity and low polysilicon prices, but the company maintains a strong balance sheet with no financial debt [7][8] - Management believes that ongoing losses will lead to the exit of less competitive players, ultimately resulting in a healthier industry [13] - The company expects production volume in Q2 2025 to be in the range of 25,000 to 28,000 metric tons [10] Other Important Information - As of March 31, 2025, the company had a cash balance of $792 million and total quick assets of $2.15 billion, providing ample liquidity [7] - The company incurred idle facility-related costs of approximately $1.58 per kilogram due to lower utilization rates [9] Q&A Session Summary Question: When does the company expect overcapacity to be eliminated? - Management indicated that rebalancing of supply and demand will take longer than expected, with no companies completely exiting the market yet [25][26] Question: What is the expected trend for industry utilization rates? - The current industry utilization rate is between 40% to 50%, with expectations for slight improvements but potential downside risks due to policy changes [28][30] Question: What is the strategy regarding ADR delisting risk? - Management acknowledged the risk but considers the probability of forced delisting relatively low, while monitoring market and regulatory developments closely [38][40] Question: What is the outlook on cash costs for subsequent quarters? - Cash costs are expected to remain similar to slightly lower in Q2 2025, depending on production levels [48]