Daqo Energy(688303.SH): The controlling shareholder, Cayman Daqo, expects polysilicon production of 35,000-40,000 tons in the first quarter of 2026.

Gelonghui, February 26 — Daqo New Energy (688303.SH) announced that its controlling shareholder, Cayman Daqo, produced 42,181 tons of polysilicon in Q4 2025, with sales of 38,167 tons. Revenue was $221.7 million, compared to $244.6 million in Q3. Net loss attributable to Daqo New Energy shareholders was $7.3 million. In 2025, Cayman Daqo produced 123,652 tons of polysilicon and sold 126,707 tons. Revenue was $665.4 million, with a net loss of $170.5 million attributable to Daqo New Energy shareholders.

In 2025, driven by the “anti-involution” policy, China’s photovoltaic industry gradually emerged from the cyclical downturn starting in Q3. Solar product market prices began to rebound from Q3, with the most significant increase in the polysilicon sector. Cayman Daqo actively adapted to market trends, increasing capacity utilization from 33% in Q1 to 55% in Q4. The annual polysilicon production successfully met expectations, reaching 123,652 tons, with full-year sales exceeding production and ending inventory returning to a reasonable level. Additionally, thanks to increased output and ongoing cost optimization, Cayman Daqo’s total production cost in Q4 2025 dropped to $5.83 per kilogram, down 9% from $6.38 in Q3 2025. Cash cost decreased from $4.54 per kilogram in Q3 to $4.46 in Q4, a 2% decline.

In 2025, Cayman Daqo significantly narrowed its losses while maintaining a strong balance sheet and ample cash reserves. This solid financial foundation provides confidence, enabling Cayman Daqo to better respond to the current market recovery and actively seize long-term opportunities.

Cayman Daqo expects polysilicon production of 35,000–40,000 tons in Q1 2026. Considering the impact of annual equipment maintenance, the full-year polysilicon production is projected to be 140,000–170,000 tons.