On July 1, Daqo Energy released a record of investor activity in June.
According to industry data, the current average transaction price of N-type dense materials is 3.
For the subsequent trend of polysilicon prices, Daqo Energy said: "On the supply side, the southwest production capacity in the second half of the year is expected to resume production, superimposed on the impact of high stock capacity." Silicon material inventory or return to a high level , the supply pattern has not improved significantly.
"On the demand side, with the end of the previous rush to install, in the second half of the year
in view of the current inventory of silicon materials in the company and the industry, Daqo Energy said that it was in a safe range. "At present, the company's silicon material inventory is maintained in a safe and reasonable range; the industry's silicon material inventory is about 400,000 tons .". Considering the historical law of the industry and the current supply and demand pattern, the inventory scale of silicon materials in the industry meets the downstream demand level of two months , which can be considered as a relatively safe and controllable state of the inventory level.
Daqo Energy disclosed that the company 's silicon production guidance for the second quarter was 2.5-2.
The original text is as follows:
First, the company's supply-side reform in the photovoltaic industry . What do you think of the plan to eliminate the backward production capacity in stock and promote the healthy development of the industry through mergers and acquisitions of leading silicon enterprises? No matter what timetable and roadmap the exploration plan is successfully implemented, the photovoltaic industry itself is already on the road to improvement. As a major participant in the industry, the company has always maintained an active attitude of support and cooperation, and is willing to participate in and coordinate the advantages of all parties to seek solutions.
2. What is the current price of silicon materials? What is the company's view on the subsequent price trend of silicon materials? The average transaction price of N-type dense materials was RMB0.44 million/ton, and the average transaction price of N-type dense materials was 3.
On the supply side, the production capacity in Southwest China was expected to resume production in the second half of the year, and the inventory of silicon materials may return to a high level due to the impact of high inventory capacity, and the supply pattern has not been significantly improved. On the demand side, with the end of the rush to install in the early stage, the demand for photovoltaic installation in the second half of the year has weakened, the growth rate has slowed down, the imbalance between supply and demand is difficult to reverse in the short term, and the price of silicon materials will remain at a low level. However, the current N-type dense materials are close to the tax-inclusive cash cost of leading enterprises, and it is expected that there will be limited room for exploration.
The Company will continue to pay attention to the market dynamics and actively respond to the challenges of price fluctuations under the industry cycle with the coordination of continuous cost reduction and efficiency enhancement, flexible production and operation mode and sound financial safety cushion.
Third, the company has sufficient cash on its books. Will there be other capital expenditure plans besides the main business? With sound financial control and flexible operation mode as the core, the company will strengthen its financial security line by strengthening cash flow reserves and optimizing the structure of assets and liabilities, enhance its ability to resist risks at the bottom of the industry cycle, and continue to consolidate its long-term value.
Four, is there any room for the company's cash cost to fall in the second quarter? As the core raw material of silicon materials, the continuous decline of market price of industrial silicon plays a direct role in the decline of cash cost.
In addition, the Company will continue to take the initiative to reduce costs and increase efficiency in the production and operation process to ensure the long-term market competitiveness of products:
(I) Reasonably optimize the procurement and supply mode of raw and auxiliary materials, activate the competition mechanism, and ensure the quality and cost of raw materials from the supply chain.
(2) Optimize the process flow and reduce energy consumption.
(3) Relying on the scientific and technological innovation strength and industrialization advantages of scientific research institutes in universities and Daquan Energy Research Institute, carry out in-depth cooperative research, regulate the proportion of N-type materials in polysilicon products, and reduce comprehensive energy consumption.
(4) Improve the accuracy of cost control through digital manufacturing, and build a safe, efficient, high-quality, low-cost intelligent factory with significant advantages.
Five, will the company have a new asset impairment plan this year?
6. What is the company's current inventory of silicon materials? How much inventory does the industry currently have? How much does inventory fall to reach a safe water level? Considering the historical law of the industry and the current supply and demand pattern, the inventory scale of silicon materials in the industry meets the downstream demand level of two months, which can be considered as a relatively safe and controllable state.
Seven, what is the company's output in the second quarter, and will the subsequent capacity utilization rate change? 5-2. The company will determine the optimal production model according to the product price and market conditions.
8. What is the impact of the reduction of capacity utilization rate on cash cost? Among them, variable costs include silicon powder, electricity, steam and major auxiliary materials, while fixed costs include labor wages and benefits. The impact of changes in
capacity utilization on cash costs is reflected at the fixed cost allocation level. When the capacity utilization rate decreases and the output decreases, the shared cost per unit product increases accordingly, but the fixed cost accounts for a limited proportion of the unit cash cost and has little impact. The change of variable costs such as silicon powder and electricity mainly depends on the fluctuation of production technology and raw material prices, and is not directly related to the change of capacity utilization rate.
9. How many degrees of green electricity did the company use last year? Is there any carbon footprint work?During the reporting period, the Company's use of renewable energy reached 5,514,085.
The Company actively responded to the national "double carbon" strategy, officially launched the product life cycle carbon footprint verification in 2024, systematically promoted the carbon emission reduction plan, and gradually reduced the carbon footprint of the whole industry chain and products relying on its own technological and business advantages. Contribute to building a green and low-carbon future.
10. What is the progress of the company's repurchase?
As of 30 June 2025, the Company repurchased a total of 15,323 shares of the Company through centralized bidding transactions, and the total amount of funds paid was RMB290,753. The Company will strictly comply with the relevant requirements and make repurchase decisions and implement them at an appropriate time according to market conditions during the repurchase period. At the same time, the obligation of information disclosure shall be fulfilled in a timely manner according to the progress of share repurchase.
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