On September 3, Daquan Energy disclosed the record of investor relations activities in the first half of 2025.
In the first half of the year, facing the severe challenges of the market environment of the photovoltaic industry , Daqo Energy said that it would strictly implement industry self-discipline, implement the strategy of reducing production, and actively regulate the pace of shipment. In the second quarter, the output of polysilicon was 26,000 tons and the sales volume was 18,000 tons; in the first half of the year, the cumulative output of polysilicon was 51,000 tons and the sales volume was 46,000 tons. In terms of
cost, the company's polysilicon unit cost in the second quarter was 58.15 yuan/kg, and the unit cash cost was 38.96 yuan/kg. In terms of
production, Daqo Energy said it would continue its previous production reduction strategy in the third quarter, with polysilicon production guidance of 27000 tons to 30000 tons and annual production guidance of 110000 tons to 130000 tons in 2025.
The original text is as follows:
I. Please introduce the operation and financial situation of the Company in the first half of 2025?
Answer: In terms of operation, in the first half of 2025, the company achieved an operating income of 1.47 billion yuan and a net profit attributable to the parent company of -1.147 billion yuan.
In the first half of the year, facing the severe challenges of the market environment of the photovoltaic industry, the company strictly implemented the industry self-discipline, implemented the strategy of reducing production, and actively regulated the pace of shipment. In the second quarter, the output of polysilicon was 26,000 tons and the sales volume was 18,000 tons; in the first half of the year, the cumulative output of polysilicon was 51,000 tons and the sales volume was 46,000 tons. In terms of
cost, the company's polysilicon unit cost in the second quarter was 58.15 yuan/kg, and the unit cash cost was 38.96 yuan/kg. In terms of finance, as of June 30, 2025, the company held a total capital reserve of about 12.09 billion yuan, including 1.66 billion yuan of monetary funds, 2.99 billion yuan of structural deposits, 7.09 billion yuan of time deposits and 350 million yuan of bank acceptance bills; The current ratio was 4.9: 1, the asset-liability ratio was reduced to 8.04%, and there were no interest-bearing liabilities. The Company had sufficient capital reserves, stable financial structure and outstanding risk resistance, which laid a solid foundation for the Company to smoothly cross the industry cycle.
2. What are the main reasons for the increase in the unit cost of the company in the second quarter of 2025 compared with the first quarter?
Answer: According to the company's financial report, the accounting caliber of unit cost is sales cost. In the first half of 2025, the Company implemented the strategy of production reduction, and took the initiative to regulate the shipment volume according to the market conditions. Fixed costs such as labor and depreciation related to the shutdown of production lines need to be allocated to the current sales volume, resulting in an increase in the unit cost in the current period. This fluctuation is a normal phenomenon under the company's short-term business strategy adjustment, and will not affect the company's long-term cost control ability and core competitiveness.
3. How does the company view the recent market rumors about the photovoltaic industry in response to "involution" and promoting capacity integration?
Answer: The company firmly supports the polysilicon industry to get out of the "involution" vicious competition as soon as possible, and actively responds to the relevant initiatives of China Photovoltaic Industry Association to promote the healthy and orderly development of the industry. If the relevant matters meet the information disclosure standards, the company will strictly comply with the requirements of the listing rules and fulfill its disclosure obligations through official channels in a timely and accurate manner.
4. Does the company have any plan to adjust the operating rate in the future?
Answer: In the third quarter, the company will continue its previous strategy of reducing production. The output of polysilicon is expected to be 27,000 to 30,000 tons, and the annual output in 2025 is expected to be 110,000 to 130,000 tons.
5. What is the significance of revising the new comprehensive energy consumption standard for polysilicon to the photovoltaic industry?
Answer: In the current standard GB 29447 – 2022 Limit of Energy Consumption Per Unit Product of Polycrystalline Silicon and Germanium, the three-level standard of the limit of comprehensive energy consumption per unit product of polycrystalline silicon is ≤ 7.5, ≤ 8.5 and ≤ 10.5 kgce/kg respectively, and the new comprehensive energy consumption standard to be revised is planned to be further improved. If the new standard is implemented smoothly, it will play an important role in promoting the "anti-involution" work of photovoltaic industry by marketization and legalization, reconstructing the benign competition pattern of the market and the sustained and high-quality development of the industry.
6. At present, does the industry and the company strictly abide by the relevant provisions of "selling at no less than cost"? What is the recent price of polysilicon?
Answer: The company's sales work is carried out in strict accordance with the Anti-Unfair Competition Law, the Price Law and relevant laws and regulations. For the price details of polysilicon, please refer to the quotation information of the third-party organization.
7. Recently, there are rumors in the market that polysilicon enterprises have taken measures to limit production. Does the company know the relevant situation?
Answer: The Company supports the Proposal of China Photovoltaic Industry Association on Further Strengthening Industry Self-discipline and Jointly Maintaining the Photovoltaic Market Order of Fair Competition and Survival of the Fittest. The Company will continue to adhere to the principle of legal and compliant operation and participate in industry competition in accordance with the law, regulations and self-discipline. Promote the high-quality development of photovoltaic industry.
8. Does the company participate in futures hedging to optimize cash flow?
Answer: The Company continuously pays attention to the dynamics of the polysilicon market and the operation of the futures market, and evaluates the feasibility of the hedging business within the compliance framework based on its own business strategy and risk tolerance. If the company is involved in major matters such as futures hedging, it will fulfill its announcement obligations in a timely and accurate manner in strict accordance with the requirements of information disclosure. The Company will continue to adhere to the principle of prudent operation, explore effective risk management tools within the scope permitted by laws and regulations, and strive to achieve a balance between sound operation and shareholders' interests.
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