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]

April 29 2025 Q1 2025 Results Presentation 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 second quarter and the full yea ...

Group 1: Earnings Performance - Daqo New Energy reported a quarterly loss of $1.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.02, and a significant decline from earnings of $0.24 per share a year ago, indicating an earnings surprise of -4.90% [1] - The company posted revenues of $123.91 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 36.13%, and a substantial decrease from year-ago revenues of $415.31 million [2] - Daqo has not surpassed consensus EPS estimates over the last four quarters, and its shares have lost about 23.8% since the beginning of the year, compared to a decline of -6% for the S&P 500 [3][2] Group 2: Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.90 on $207.1 million in revenues for the coming quarter and -$2.27 on $933.37 million in revenues for the current fiscal year [4][7] - The estimate revisions trend for Daqo is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] - The outlook for the Chemical - Specialty industry, where Daqo operates, is in the bottom 40% of Zacks industries, which may negatively impact the stock's performance [8]

Daqo New Energy (DQ) Q1 2025 Earnings Call April 29, 2025 08:00 AM ET Company Participants Jessie Zhao - IR - DirectorNone - ExecutiveMing Yang - Chief Financial OfficerAlan Hon - Head of Asia Power & Utilities and Renewables Equity Research Conference Call Participants Philip Shen - Managing Director, Senior Research Analyst Operator Good day, and welcome to the Dakot New Energy First Quarter twenty twenty five Results Conference Call. All participants will be in a listen only mode. After today's presentat ...

Core Viewpoint - Daqo New Energy Corp. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC, which includes audited consolidated financial statements [1]. 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 manufactures and sells high-purity polysilicon to photovoltaic product manufacturers, who further process it into ingots, wafers, cells, and modules for solar power solutions [3]. - Daqo has a total polysilicon nameplate capacity of 305,000 metric tons and is recognized as one of the world's lowest cost producers of high-purity polysilicon [3].

SHANGHAI, April 29, 2025 /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 first quarter of 2025. First Quarter 2025 Financial and Operating Highlights | US$ millions | March | December | | March | | | --- | --- | --- | --- | --- | --- | | except as indicated otherwise | 31, 2025 | 31, 2024 | | 31, 2024 | | | Revenues | 123.9 | ...

Legal and Regulatory Risks - The company is subject to legal and operational risks associated with its operations in China, including uncertainties in the interpretation and enforcement of PRC laws and regulations [25]. - The PRC government may intervene in the company's operations, which could materially affect its business environment and financial markets [26]. - The company is required to comply with new regulatory requirements for overseas securities offerings as per the Trial Administrative Measures effective March 31, 2023 [28]. - Recent regulatory developments in China may expose the company to additional compliance requirements and government interference [38]. - The company must navigate uncertainties in China's legal system, which could limit legal protections available to it [38]. - The company is subject to the Trial Administrative Measures of Overseas Securities Offering and Listing, which require compliance with filing requirements that may impact capital raising activities [135]. - Future securities offerings may require approval from the Shanghai Stock Exchange or CSRC, introducing uncertainty in capital raising efforts [134]. - The PRC government has initiated regulatory actions that may affect the company's ability to conduct overseas securities offerings and listings [129]. - Recent regulatory developments in China could impose additional review and disclosure requirements, potentially hindering the company's ability to raise capital outside China [128]. - The company is subject to PRC laws regarding the collection and transfer of confidential information, which may impact its operations [132]. - Non-compliance with SAFE regulations by beneficial owners may result in fines and legal sanctions, adversely affecting the company's ability to distribute profits [139]. - The company has completed SAFE registration for its beneficial shareholders who are Chinese residents, but cannot assure full compliance [140]. Market and Economic Risks - The company faces risks related to the imbalance between polysilicon supply and demand, which could lead to price declines [38]. - The company is affected by the reduction or elimination of government subsidies for solar energy applications, which could decrease demand for its products [38]. - The photovoltaic industry is still in an early development stage, with uncertain demand for photovoltaic products and technologies [39]. - Average selling prices (ASPs) of polysilicon may decline if demand for solar products does not expand as expected, adversely affecting future growth and profitability [40]. - Global solar PV installations grew from approximately 130 GW in 2020 to an anticipated 530 GW in 2024, indicating a strong market trend despite potential subsidy reductions [44]. - Polysilicon prices experienced substantial volatility in 2023 due to oversupply and inventory excess, with expectations of continued low prices in 2025 [43]. - The company derives substantially all of its revenues from customers in China, making it vulnerable to economic slowdowns in the region [114]. - Any prolonged slowdown in the Chinese economy may reduce demand for the company's products, adversely affecting its operating results [125]. - The company is subject to many economic and political risks associated with emerging markets, including fluctuations in GDP and regulatory changes [123]. Operational and Production Risks - The company relies on a limited number of customers for a significant portion of its revenues, which poses a risk to its financial stability [38]. - The company may not be successful in its efforts to manufacture high-quality polysilicon in a cost-effective manner, impacting its profitability [38]. - The company faces challenges in its future commercial production and expansion projects, particularly in Baotou and Shihezi [38]. - The company faces significant risks in its expansion plans, including potential construction delays and the inability to ramp up new capacity effectively [59]. - The company operates in a competitive market with major competitors such as Wacker, OCI, and GCL-Poly, which may limit its ability to expand sales [65]. - The company is dependent on a stable supply of electricity for polysilicon production, and disruptions could materially affect its operations [67]. - The company has no prior experience in manufacturing semiconductor-grade polysilicon, which poses risks to its expansion into this market [61]. - The company anticipates needing to implement new operational and financial systems to support its expansion, which will require substantial management efforts [61]. - The company has experienced significant delays in the delivery of key production equipment, which could disrupt production schedules and increase costs [91]. - The company’s reliance on a limited number of suppliers for production equipment poses risks, as any issues with these suppliers could adversely affect production capacity and financial performance [91]. - The company has conducted annual maintenance on its polysilicon facilities, which may impact production volume and costs [79]. - The company’s operations are subject to various risks, including natural disasters, adverse weather conditions, and operating hazards, which could negatively affect business operations [80]. - The company’s photovoltaic products may contain defects that could lead to increased costs and damage to customer relationships if not addressed promptly [93]. Financial Risks - The company requires significant cash for future capital expenditures and R&D to remain competitive, particularly for expansion projects in Inner Mongolia and Xinjiang [47]. - Fluctuations in revenues and operations are expected due to factors like global ASPs, customer demand, and government subsidies, with a net loss recognized in 2024 [45]. - The company has incurred significant share-based compensation expenses due to stock options and other share-based compensation, which may adversely affect its net income [112]. - The company is classified as a passive foreign investment company (PFIC) for U.S. federal income tax purposes, which could result in adverse tax consequences for U.S. holders [177]. - The company was classified as a Passive Foreign Investment Company (PFIC) for the taxable year ended December 31, 2024, with significant risk of continued PFIC status in future years [178]. - The company may issue additional equity or equity-linked securities, which could substantially dilute existing shareholders' interests and adversely affect the price of its ordinary shares or ADSs [159]. - The trading prices of the company's ADSs ranged from $14.04 to $29.41 in 2024, indicating potential volatility in the future [156]. - Factors affecting the volatility of the company's ADSs include variations in revenues, earnings, cash flow, and announcements of new investments or acquisitions [160]. - The company is incorporated under Cayman Islands law, which may limit shareholders' ability to protect their interests compared to U.S. companies [163]. - The depositary for the company's ADSs will give a discretionary proxy to vote ordinary shares if shareholders do not vote, potentially affecting shareholder influence [169]. - The company may not be able to distribute dividends or other distributions if it is illegal or impractical to do so, which could lead to a decline in the value of its ADSs [172]. - The company may experience dilution of holdings for ADS holders if rights offerings are not distributed due to registration issues [173]. - The company's financial results are presented in U.S. dollars, and a strengthening U.S. dollar against RMB will reduce reported revenue and earnings [147]. - Any significant depreciation of RMB against the U.S. dollar may adversely affect the value of dividends payable on the company's ADSs and ordinary shares [148]. - Restrictions on currency exchange under PRC laws may limit the company's ability to convert cash from operating activities into foreign currencies, impacting dividend payments [155]. Technological and Competitive Risks - The company faces risks from alternative polysilicon production technologies that could reduce market share and profitability if not addressed [54]. - Technological advancements in the solar power industry may render current products uncompetitive, necessitating significant investment in R&D [55]. - The demand for polysilicon could be adversely affected by the rise of alternative technologies like thin-film and perovskite solar cells [56]. - The company holds 429 patents and has 161 pending patent applications in China related to polysilicon and wafer manufacturing as of December 31, 2024 [96]. - The company relies on trade secrets and contractual restrictions for intellectual property protection, which may not be sufficient [96]. - Cybersecurity threats pose risks to the company's operations, potentially leading to material adverse effects [98]. - The company may incur significant costs and resource diversion due to potential litigation over intellectual property rights [99]. Environmental and Compliance Risks - Compliance with environmental regulations is crucial, as non-compliance may lead to significant fines and operational disruptions [104]. - The company has faced challenges due to the Uyghur Forced Labor Prevention Act, which may restrict imports of its products into the U.S. market, potentially reducing demand [87]. - The company is exposed to risks related to dealing with sanctioned persons, particularly due to operations in Xinjiang [95]. - The company has limited insurance coverage, specifically lacking product liability and business interruption insurance, which could lead to substantial costs in case of business disruptions or natural disasters [109]. - The company is exposed to product liability claims due to potential injuries from its photovoltaic products, which could result in significant monetary damages [110]. Production Capacity and Sales - The company increased its total annual polysilicon production capacity to 105,000 MT in January 2022, 205,000 MT in June 2023, and anticipates reaching 305,000 MT by May 2024 [61]. - In 2022, 2023, and 2024, the company sold 132,909 MT, 200,002 MT, and 181,362 MT of polysilicon, respectively [61]. - The top three customers accounted for approximately 54.7%, 64.4%, and 53.8% of total revenues from continuing operations in 2022, 2023, and 2024, respectively [66]. - The company achieved full production capacity of 105,000 MT per annum in January 2022 after completing the Phase 4B expansion project [199]. - The Phase 5A project increased the annual production capacity of polysilicon for the solar industry to 205,000 MT, completed in June 2023 [199]. - The Phase 5B project, which began production in May 2024, further increased the annual production capacity for polysilicon to 305,000 MT [199]. - In 2024, the actual production volume of polysilicon was 205,068 MT, up from 197,831 MT in 2023 [217]. - Quarterly polysilicon sales volume for 2024 totaled 181,362 MT, with the first quarter at 53,987 MT, second at 43,082 MT, third at 42,101 MT, and fourth at 42,191 MT [216]. - Over 99% of polysilicon sold in 2024 was for mono-wafer applications, which require higher quality [217]. - N-type polysilicon production reached approximately 70% of total products produced in 2024 [217].

Core Viewpoint - Daqo New Energy Corp. plans to release its unaudited financial results for the first quarter of 2025 on April 29, 2025, before U.S. markets open [1] Group 1: Financial Results Announcement - The financial results will cover the period ended March 31, 2025 [1] - A conference call is scheduled for April 29, 2025, at 8:00 AM U.S. Eastern Time to discuss the results [2] - The company provides various dial-in options for participants, including toll-free numbers for the U.S. and China [2] Group 2: Conference Call Details - A replay of the conference call will be available one hour after its conclusion until May 6, 2025 [3] - Specific dial-in details for accessing the replay are provided, including toll-free numbers for the U.S. and Canada [3][4] Group 3: Company Overview - Daqo New Energy Corp. is a leading manufacturer of high-purity polysilicon for the global solar PV industry, founded in 2007 [5] - The company has a total polysilicon nameplate capacity of 305,000 metric tons and is recognized as one of the lowest cost producers in the industry [5]

Company Overview - Daqo New Energy (DQ) shares increased by 6.1% to $14.56, following a significant trading volume, despite a 25.8% loss over the past four weeks [1] - The stock's surge was attributed to a broad-based rally initiated by President Trump's announcement of a 90-day suspension of reciprocal tariffs for most countries [1] Financial Performance - Daqo is projected to report a quarterly loss of $1.02 per share, reflecting a year-over-year decline of 525% [2] - Expected revenues for Daqo are $194 million, which is a decrease of 53.3% compared to the same quarter last year [2] Earnings Estimates and Stock Movement - The consensus EPS estimate for Daqo has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Daqo currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - Daqo operates within the Zacks Chemical - Specialty industry, where another company, Ashland (ASH), saw an 11.2% increase in its stock price to $51.75, despite an 18.8% decline over the past month [3] - Ashland's consensus EPS estimate has decreased by 0.5% over the past month to $1.14, representing a 10.2% decline from the previous year [4] - Ashland currently has a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to Daqo [4]

Company Overview - Daqo New Energy Corp. is a holding company for one of the largest polysilicon manufacturers globally, Xinjiang Daqo, which is listed as a subsidiary on the Shanghai Stock Exchange [1]. Investment Perspective - The company is viewed favorably by value investors who focus on acquiring stocks at a significant margin of safety below their intrinsic value [1]. - There is a contrarian investment view suggesting that risk and return can be inversely correlated, leading to substantial bets when the risk/reward ratio is highly asymmetrical [1].