On December 2, Daqo Energy released a record of investor relations activities in November.
In this exchange, Daqo Energy mentioned that the company's polysilicon production in the third quarter was 31000 tons. Based on the current market trends, product prices and changes in market trends, Daqo Energy expects to produce 395-42,500 tons of polysilicon in the fourth quarter.
Photo Energy: In terms of energy storage business on the official website
of Daqo Group, Daqo Energy said that Daqo Energy Technology (Shanghai) Co., Ltd. At present, it is still in the early stage of planning, and no specific substantive investment plan has been formulated.
Finally, Daqo Energy also forecasts the global demand for photovoltaic installations in 2026. Among them, in the domestic market, due to the high base of installed capacity in the early stage and the adjustment of industrial policies, the growth rate tends to be stable , and the focus of development will be transformed from scale expansion to high-quality development;
Overseas market demand has maintained a steady rise , among which: the Middle East, Southeast Asia, Latin America and South Asia, relying on the national and regional energy transformation demand and regional resource endowment advantages, will become the main source of installed capacity increment in overseas markets; As a traditional PV market, the growth of installed capacity in Europe is relatively stable, while the growth of installed capacity in the United States is relatively flat due to the impact of relevant policies of government bills.
The original text is as follows:
First, please introduce the company's business situation in the third quarter?
Answer: In terms of operation, the company's operating performance has improved significantly. In the third quarter of 2025, the Company achieved an operating income of RMB1.773 billion and a net profit attributable to the parent company of RMB73 million, turning losses into profits on a year-on-year and quarter-on-quarter basis. The net operating cash flow turned positive synchronously, and the overall profitability was enhanced. During the reporting period, the output of polysilicon was 31,000 tons, the sales volume was 42,000 tons, the production and sales rate increased to 138%, and the efficiency of asset operation continued to optimize. In terms of
cost, the company has achieved outstanding results in reducing costs and increasing efficiency. In the third quarter, the unit cost of polysilicon was 46.04 yuan/kg, and the unit cash cost was 34.63 yuan/kg. The two indicators decreased significantly year-on-year and month-on-month, and the cost competitiveness was further enhanced.
Financially, the financial structure remained sound. In the third quarter, the Company's asset-liability ratio was 8.20%, which was at a relatively low level in the industry. As at the end of the reporting period, the Company's cash reserves, including monetary capital, time deposits, structured deposits and bank acceptance bills, amounted to RMB13.012 billion, which provided strong financial support for coping with the industry cycle and seizing future market opportunities.
Two, what is the company's outlook for the fourth quarter? What measures will be taken to ensure sustained profitability in the future?
Answer: Based on the changes in the current market trend, product price and market trend, the company has made dynamic adjustments to the production plan. It is estimated that the output of polysilicon in the fourth quarter will be 395-42,500 tons. The scale benefit brought by the increase of production and the decrease of fixed cost per unit product are expected to further optimize the unit cost.
The Company will continue to reduce costs and increase efficiency, consolidate its core competitive advantages, maintain a prudent financial policy, maintain abundant cash and low asset-liability ratio, actively respond to market changes, flexibly adjust production and sales strategies, and improve operational efficiency; Strive to achieve the synergy of intrinsic value and market value, and bring sustained and stable value returns to investors.
3. What is the relationship between Daqo Energy Technology (Shanghai) Co., Ltd. and the company? Have you considered developing energy storage business? What is the impact of the company on the future business layout of Daqo?
Answer: Daqo Energy Technology (Shanghai) Co., Ltd. is an indirectly wholly-owned subsidiary of Xinjiang Daxin New Energy Co., Ltd. Its business scope includes energy storage technology services. At present, it is still in the early stage of planning, and no specific substantive investment plan has been formulated. The subsidiary is an important platform for the company to expand business growth poles and strengthen industrial chain synergy, aiming at relying on the main business advantages of high-purity polysilicon research and development, production and sales, realizing efficient synergy between new business and main business, and opening up new growth space for the company's sustainable development.
4. What are the main reasons for the significant decrease in the unit cost of the company in the third quarter compared with the previous quarter and the same period last year?
Answer: In terms of supply chain management, the Company continued to optimize the procurement system of raw and auxiliary materials and the supply chain collaboration mode, and strengthened the control of procurement costs. In terms of production and operation, the Company effectively reduced the unit consumption of various materials and comprehensive energy consumption in the production process through process optimization and product structure regulation, and further promoted the reduction of production costs. In addition, the company actively adjusted the layout of production and marketing according to the market situation, the production and sales rate increased significantly year on year, and the proportion of fixed costs such as labor and depreciation in the sales side decreased significantly, which played a key role in optimizing the unit cost.
The fifth and third quarterly financial reports show that the gross profit rate of the current period is positive, but according to estimates, the unit cost is still higher than selling price, what is the reason for the difference between the two?
Answer: The provision for decline in value of inventories made by the Company in the previous period was reversed or written off in the current period, and the non-operating income also supplemented the profit, which promoted the positive improvement of the profit in the current period.
6. What is the company's expectation for the global demand for photovoltaic installations in 2026?
Answer: The global demand for PV installed capacity is expected to show a steady development trend in 2026. In terms of the domestic market, due to the high base of installed capacity in the previous period, the adjustment of industrial policies and other factors, the growth rate tended to be stable, and the focus of development shifted from scale expansion to high-quality development. The overseas market demand maintained a steady increase, and the Middle East, Southeast Asia, Latin America and South Asia became the main source of installed capacity increment in the overseas market by virtue of the national and regional energy transformation demand and regional resource endowment advantages; As a traditional PV market, the growth of installed capacity in Europe is relatively stable, while the growth of installed capacity in the United States is relatively flat due to the impact of relevant policies of government bills.
7. What is the significance of the new comprehensive energy consumption standard for polysilicon to the photovoltaic industry?
Answer: On September 16, the Standardization Administration of the People's Republic of China issued the Energy Consumption Quota for Polycrystalline Silicon and Germanium Unit Products (draft for comments). The quota standard of comprehensive energy consumption per unit product of polycrystalline silicon (trichlorosilane method) is redefined and graded: Grade 1 is the target level (corresponding to the advanced process standard of the industry), Grade 2 is the access level of new construction or expansion projects, and Grade 3 is the limited level; The proposed energy consumption limits for levels 1, 2 and 3 are ≤ 5, ≤ 5.5 and ≤ 6.4 kgce/kg respectively, which are significantly higher than requirements of ≤ 7.5, ≤ 8.5 and ≤ 10.5 kgce/kg in the current Limits on Energy Consumption per Unit Product of Polycrystalline Silicon and Germanium (GB 29447 – 2022). The revision of this
standard is in line with the actual development of industry technology and the guidance of national industrial policy, and provides a more scientific and advanced technical standard basis for industrial optimization and transformation; At the same time, it is of great significance to promote the "anti-involution" work of photovoltaic industry with marketization and legalization, reconstruct the benign competition pattern of the market, and ensure the sustainable and high-quality development of the industry.
Eight, what is the progress of the company's repurchase?
Answer: The Company will strictly comply with the Share Repurchase Rules of Listed Companies, the Guidelines for Self-regulation of Listed Companies of the Shanghai Stock Exchange No.7 – Share Repurchase and other relevant provisions, make repurchase decisions and implement them according to market conditions within the repurchase period, and fulfill the obligation of information disclosure in a timely manner according to the progress of share repurchase.
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