DQ

This article first appeared on GuruFocus. Revenue: $62.7 million in Q2 2026, up from $26.7 million in Q1 2026 and down from $75 million in Q2 2025. Gross Loss: $82.7 million, compared to a gross loss of $39 million in Q1 2026 and $81.4 million in Q2 2025. Gross Margin: Negative, improved sequentially from negative 520% in Q1 2026 to negative 108% in Q2 2025. Operating Loss: $98 million, compared to an operating loss of $50.8 million in Q1 2026 and $12 million in Q2 2025. Operating Margin: Negative 156%, compared to negative 60% in Q1 2026 and negative 152% in Q2 2025. Net Loss: Attributable to Daqo shareholders was $81 million, compared to $88 million in Q1 2026 and $76.5 million in Q2 2025. Loss per ADS: Basic loss was $1.20, compared to $1.31 in Q1 2026 and $14 in Q2 2025. Adjusted Net Loss: Excluding noncash share-based compensation, was $81 million, compared to $88.4 million in Q1 2026 and $67.9 million in Q2 2025. Adjusted Loss per ADS: $1.20, compared to $1.31 in Q1 2026 and $0.86 in Q2 2025. EBITDA: Negative $29 million, compared to negative $83 million in Q1 2026 and negative $48 million in Q2 2025. EBITDA Margin: Negative 46.8%, compared to negative 31% in Q1 2026 and negative 64% in Q2 2025. G&A Expenses: $13.8 million, up from $12.2 million in Q1 2026 and down from $32 million in Q2 2025. R&D Expenses: $1.6 million, up from $0.8 million in Q1 2026 and Q2 2025. Cash and Cash Equivalents: $555 million as of June 30, 2026, compared to $559.4 million as of March 31, 2026. Short-term Investments: $215 million as of June 30, 2026, compared to $88 million as of March 31, 2026. Notes Receivable: $71.7 million as of June 30, 2026, compared to $20.8 million as of March 31, 2026. Held-to-Maturity Investments: $51 million as of June 30, 2026, compared to $50.3 million as of March 31, 2026. Fixed-term Deposits (within 1 year): $928.9 million as of June 30, 2026, compared to $1 billion as of March 31, 2026. Operating Cash Flow: Net cash used in operating activities was $276 million for the six months ended June 30, 2026, compared to $105 million in the same period of 2025. Production Volume: Total polysilicon production volume was 43,675 metric tonnes in Q2 2026, exceeding guidance of 35,000 to 40,000 metric tonnes. Sales Volume: Increased from 4,400 metric tonnes in Q1 2026 to 151 metric tonnes in Q2 2026. Average Selling Price: Fell to $4.04 per kilogram in Q2 2026. Production Cost: Polysilicon production costs remained flat sequentially at $0.95 per kilogram. Capacity Utilization Rate: Approximately 57% during Q2 2026. Warning! GuruFocus has detected 3 Warning Signs with DQ. Is DQ fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Daqo New Energy Corp (NYSE:DQ) maintained a robust balance sheet with zero debt and ample liquidity of USD1.9 billion in convertible assets as of June 30, 2026. Production volume exceeded guidance, reaching 43,675 metric tons in Q2 2026, above the 35,000-40,000 metric ton range. The company is diversifying into the high-growth AI data center power infrastructure market, with a prototype expected by year-end and sales targeted for 2027. New government regulations and industry self-discipline initiatives are expected to phase out inefficient capacity and end below-cost sales, benefiting low-cost producers like Daqo New Energy Corp (NYSE:DQ). Daqo New Energy Corp (NYSE:DQ) is optimistic about its semiconductor polysilicon business, citing a significant market demand-supply gap (75,000 tons demand vs. 57,000 tons production). Daqo New Energy Corp (NYSE:DQ) reported a net loss attributable to shareholders of $81 million in Q2 2026, though narrower than the previous quarter. Gross margin remained deeply negative at -132% in Q2 2026, reflecting polysilicon prices below production costs. The company's capacity utilization rate was low at approximately 57% during the quarter, indicating ongoing operational challenges. Industry-wide polysilicon inventory remains high at 500,000-600,000 tons, which could delay price recovery and prolong market weakness. The company's sales volume was significantly reduced in the first half due to adherence to self-discipline guidelines, impacting revenue and market share. Q: How would you characterize the central government's stance on supply rationalization, and are you anticipating any incremental regulatory support that could help establish a sustainable polysilicon price in the near term?A: (CEO Xiang Xu, via interpreter) On August 6, led by the China Photovoltaic Industry Association, there is a strong initiative for self-discipline. Based on the CPIA cost model, the industry average production cost is estimated to be around RMB50,000 per ton. However, due to low demand and approximately 500,000 to 600,000 tons of industry-wide inventory, price recovery might take longer than anticipated. There is a strong consensus within the industry, urged by the government, that it is no longer viable to sell below cost. Quotations for polysilicon from different manufacturers have already exceeded RMB40 per kilogram, and we are optimistic about current policy development. Q: What makes this new self-discipline framework structurally distinct from past attempts, and what is your estimate of total industry capacity that could be phased out due to energy consumption requirements?A: (CEO Xiang Xu, via interpreter) The current round of anti-dumping policy is led by the State Administration for Market Regulation (SAMR) and is based on each manufacturer's individual production costs and efficiencies, rather than coordinated pricing or allocation. This makes it more sustainable and supported by the government. The new energy quota policy, which sets different energy usage requirements, will lead to the exit of a significant amount of capacity with higher energy usage. We expect this to happen soon, along with voluntary production reductions. Additionally, many manufacturers running at low utilization lack the employees and training to restart shut-down capacity, so effective capacity is likely to decrease further from the current less than 2 million tons. Q: Given high industry inventory and weak end demand, when would you expect the first batch of transactions at a higher price to happen, as data has halted in the past 2 weeks?A: (CEO Xiang Xu, via interpreter) We are seeing some transactions happening at roughly RMB40,000 per ton (RMB40 per kilogram), although at a very low volume. Some wafer producers with very low or no inventory are procuring for production. Some manufacturers are testing the market at approximately RMB40 per kilogram, even though the full cost model would stipulate around RMB50 per kilogram. Since it has been about 2 weeks since the announcement, we expect to see more transactions at this new price range going forward. Q: If prices rise to RMB40-50 per kilogram, what do you think the end game of this round of initiatives is? Will some capacities be shut down due to higher energy consumption requirements?A: (CEO Xiang Xu, via interpreter) The recent energy quota policy will lead to the exit of a significant amount of capacity with higher energy usage. Combined with industry self-discipline and commitments to reduce production and avoid selling below cost, we expect these changes to happen in the second half of this year. Many producers lack the capability to restart capacity due to low utilization and a lack of trained employees. While the industry's built capacity is close to 3 million tons, the effective capacity is already less than 2 million tons and is likely to go lower. Q: Can you provide an update on the AIDC (AI Data Center) power infrastructure initiative as a second growth driver, including backlog, progress, and market share plans?A: (CEO Xiang Xu, via interpreter) We see the AIDC-related power infrastructure and equipment market as a very viable and significant growth driver. Dako Group brings over 40 years of experience in power equipment, and we see strong demand, especially in AI data center-related power equipment. We are targeting the solid-state transformer and solid-state circuit breaker market, with the industry starting in 2027 and significant growth expected from 2028 to 2030. We have built an R&D team in Shanghai, expect an initial product ready by year-end, and aim to achieve sales starting in 2027. Our goal is to become an industry leader and Tier 1 player in this sector. Q: What is your poly business operation strategy going forward? Will you uphold pricing to a higher level or balance between price and shipments?A: (CEO Xiang Xu, via interpreter) Selling and shipping our product is not an issue due to our superior quality. The question is price. In the first half, we adhered to self-discipline and did not sell as much as our normal market share. We believe we can achieve approximately 15% market share within the industry. Our target is to sell at an appropriate price, fully complying with government guidance. We expect forced or market-based exits of high-cost manufacturers in the next 6 to 18 months. With our strong balance sheet, high product quality, and low cost, we expect to do well, especially in 2027, and we plan to lower our inventory to relatively low levels. Q: Can you share more details on the CapEx timeline, source of capital, expected payback duration, and normalized profitability for the AIDC business?A: (CFO Ming Yang) The total project anticipated investment is RMB6 billion, but we are only committing to the first phase of about RMB3 billion, which covers solid-state transformers, solid-state circuit breakers, e-house total solutions, and energy storage. The remaining RMB3 billion is not committed as of today. We expect to spend only about USD30 million to USD40 million this year, with the remainder over the next 2 years. We are focusing on R&D and building manufacturing facilities, with a prototype ready by year-end. 2026 and 2027 are preparation and market introduction periods, with significant revenue ramp-up expected from 2028 to 2030. Q: Can you provide an update on the semiconductor polysilicon business?A: (CEO Xiang Xu, via interpreter) We have spent a total investment of about RMB1.2 billion, including land and equipment, on the semiconductor polysilicon business. We are in product trial production and customer qualification, which has taken longer than anticipated. We are optimistic about significant market demand, as the demand for semiconductor polysilicon is roughly 75,000 tons per year, while current industry production is only about 57,000 tons per year. This represents a very significant growth opportunity for this market sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in DAQO New Energy Corp.? Here are five stocks we like better. Second-quarter results improved sequentially as revenue rose to $62.7 million and the net loss narrowed to $81 million, supported by resumed polysilicon sales and higher volume. However, the average selling price of $4.04 per kilogram remained below the $5.95 per kilogram production cost. Industry oversupply continues to pressure prices: polysilicon inventories were estimated at 500,000–600,000 tons, although Chinese policies targeting below-cost sales and inefficient capacity could improve pricing discipline. Daqo expects a stronger market environment in 2027. Daqo maintained substantial liquidity with no debt and approximately $1.8 billion in cash, investments and deposits. It is also investing in AIDC power infrastructure and semiconductor-grade polysilicon, with potential AIDC revenue growth expected from 2028 to 2030. Daqo New Energy: Solar Monopoly Launches $100M Buyback DAQO New Energy (NYSE:DQ) reported a narrower second-quarter loss as it resumed normal polysilicon sales in June, though pricing remained below production costs amid weak solar demand and elevated industry inventories. Revenue for the second quarter of 2026 was $62.7 million, up from $26.7 million in the first quarter, primarily reflecting higher sales volume. Revenue was down from $75 million in the year-ago period. Net loss attributable to shareholders narrowed sequentially to $81 million, or $1.20 per basic ADS, from $88 million, or $1.31 per ADS, in the first quarter. The company reported a net loss of $76.5 million, or $1.14 per ADS, in the second quarter of 2025. → Datavault AI Locks Down CyberCatch in $94M Security Rollup The Solar Stock Battle: Is Daqo or JinkoSolar Your Next Big Win? Chairman and CEO Xiang Xu, whose remarks were translated by Deputy CEO Anita Zhu, said cautious sentiment across the solar photovoltaic industry persisted during the quarter because of soft domestic demand and high inventories. Those conditions pushed prices lower throughout the solar supply chain. Daqo resumed sales in June after initially avoiding below-cost transactions under Chinese industry self-regulation guidelines. The company changed to a more market-oriented sales and pricing approach after what management described as an extended period without clear policy updates. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Wall Street Believes in First Solar Stock’s Bull Cycle Polysilicon sales volume rose to 15,190 metric tons from 4,482 metric tons in the prior quarter. However, the average selling price declined to $4.04 per kilogram, below the company’s reported production cost of $5.95 per kilogram. Cash cost edged down 0.4% sequentially to $4.57 per kilogram. Second-quarter polysilicon production totaled 43,675 metric tons, exceeding the company’s guidance range of 35,000 to 40,000 metric tons. Nameplate capacity utilization was approximately 57% across its two polysilicon facilities. → Home Depot Analysts See a Path to $375 and Beyond The company projected third-quarter polysilicon production of 40,000 to 45,000 metric tons and full-year output of 160,000 to 180,000 metric tons. CFO Ming Yang said gross loss was $82.7 million, compared with a gross loss of $139 million in the first quarter. Gross margin improved to negative 132% from negative 520% sequentially, aided by lower inventory impairment provisions. Inventory impairment provisions were $55.7 million during the second quarter, down from $98.9 million in the prior quarter. Operating loss narrowed to $98 million from $160.8 million, while EBITDA improved to a negative $29 million from a negative $83 million. Research and development expense increased to $1.6 million from $800,000 in the first quarter, which Yang said was primarily related to the development of next-generation energy solutions for artificial intelligence data center, or AIDC, power infrastructure. As of June 30, the company reported $555 million in cash and cash equivalents, $215 million in short-term investments, $71.7 million in notes receivable, $51 million in held-to-maturity investments and $928.9 million in fixed-term deposits within one year. Management emphasized that the company maintained zero debt and substantial liquidity during the downturn. Management said polysilicon prices fell from roughly RMB35 to RMB37 per kilogram at the end of the first quarter to RMB31 to RMB34 per kilogram at the end of the second quarter. Xu said the industry held an estimated 500,000 to 600,000 tons of polysilicon inventory, which could delay a broader recovery. Still, executives pointed to Chinese measures intended to curb low-price competition and remove inefficient capacity. New energy-consumption standards for polysilicon will take effect Jan. 1, 2027, requiring manufacturers exceeding 6.3 kilograms of coal equivalent per kilogram of output to complete corrective improvements or risk shutdowns. Daqo and seven other polysilicon manufacturers signed an Aug. 6 initiative to eliminate below-cost sales and comply with energy-consumption standards. Management said spot prices had stabilized and forward prices had risen more than 10% from recent lows. During the question-and-answer session, Yang said some low-volume transactions were occurring around RMB40 per kilogram, while the industry’s average production cost under a China Photovoltaic Industry Association model was estimated near RMB50 per kilogram. Xu said Daqo’s priority is to avoid selling below cost while seeking reasonable sales prices. He said the company expects higher-cost producers and companies with weaker cash positions to face pressure over the next six to 18 months, and management expects a better market environment in 2027. Daqo is also pursuing AIDC power infrastructure as a second growth area beyond solar polysilicon. The company announced an investment agreement in June for a manufacturing base focused on energy storage systems, solid-state transformers and solid-state circuit breakers, including equipment supporting high-voltage direct-current architectures such as 800V DC systems. Management said the project contemplates RMB6 billion of total investment, but only the first RMB2 billion phase is currently committed. The company expects to spend roughly $30 million to $40 million this year, with the remaining first-phase investment occurring over the following two years. Executives said an R&D team has been established in Shanghai and that an initial product prototype is expected by year-end. Management characterized 2026 and 2027 as preparation and market-introduction years, with a potential revenue ramp from 2028 through 2030. Xu also provided an update on the company’s semiconductor polysilicon initiative, for which it has invested approximately RMB1.2 billion including land, equipment and facilities. Customer qualification has taken longer than expected, management said, but the company remains engaged in trial production and qualification efforts. DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production. Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China's Xinjiang Uygur Autonomous Region. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DAQO New Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SHANGHAI, Aug. 20, 2026 /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 second quarter ended June 30, 2026. Second Quarter 2026 Financial and Operating Highlights Aggregate of cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed term bank deposit balance was $1.92 billion at the end of Q2 2026, compared to $2.00 billion at the end of Q1 2026 Polysilicon production volume was 43,675 MT in Q2 2026, compared to 43,402 MT in Q1 2026 Polysilicon sales volume was 15,190 MT in Q2 2026, compared to 4,482 MT in Q1 2026 Polysilicon average total production cost(1) was $5.95/kg in Q2 2026, compared to $5.95/kg in Q1 2026 Polysilicon average cash cost(1) was $4.57/kg in Q2 2026, compared to $4.59/kg in Q1 2026 Polysilicon average selling price (ASP) was $4.04/kg in Q2 2026, compared to $5.96/kg in Q1 2026 Revenue was $62.7 million in Q2 2026, compared to $26.7 million in Q1 2026 Gross loss was $82.7 million in Q2 2026, compared to $139.4 million in Q1 2026; gross margin was negative 132.0% in Q2 2026, compared to negative 521.5% in Q1 2026 Net loss attributable to Daqo New Energy Corp. shareholders was $81.2 million in Q2 2026, compared to $88.4 million in Q1 2026; loss per basic American Depositary Share (ADS)(3) was $1.20 in Q2 2026, compared to $1.31 in Q1 2026 Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $81.2 million in Q2 2026, compared to $88.4 million in Q1 Adjusted loss per basic ADS(3) (non-GAAP)(2) was $1.20 in Q2 2026, compared to adjusted loss per basic ADS(3) (non-GAAP)(2) of $1.31 in Q1 2026; EBITDA (non-GAAP)(2) was negative $29.3 million in Q2 2026, compared to negative $83.1 million in Q1 2026; EBITDA margin (non-GAAP)(2) was negative 46.8% in Q2 2026, compared to negative 311.1% in Q1 2026 Management Remarks Mr. Xiang Xu, CEO of Daqo New Energy, commented, "In the second quarter of 2026, market sentiment across the solar PV industry remained cautious amid weak domestic demand and elevated inventory levels, which drove prices lower across the solar value chain. Despite these headwinds, we resumed sales in June, delivering a sequential increase in revenue and a narrowing of our quarterly operating and net losses. Throughout this period, we continued to maintain a robust and healthy balance sheet with zero debt. As of June 30, 2026, we held a cash balance of $555.3 million, short-term investments of $250.0 million, bank notes receivables of $71.7 million, held-to-maturity investments of $51.0 million, and a fixed term bank deposit balance of $994.8 million. Together, these readily convertible assets totaled $1.9 billion, providing us with ample liquidity, confidence, and strategic flexibility to navigate the current market downturn." "On the operational front, we continued to take proactive measures to navigate challenging market conditions, with our nameplate capacity utilization rate operating at approximately 57% during the period. Total production volume at our two polysilicon facilities was 43,675 MT for the quarter, exceeding our guidance range of 35,000 MT to 40,000 MT. With polysilicon market prices remaining below production costs since the first quarter of 2026, we initially refrained from engaging in below-cost sales in line with Chinese self-regulation guidelines, and adopted a disciplined, wait-and-see approach pending further implementation of the national anti-involution policies. However, after an extended period without clear policy updates, we adjusted our sales and pricing strategies toward a more market-oriented approach in June. As a result, our sales volume increased from 4,482 MT last quarter to 15,190 MT, with average selling price falling to $4.04/kg. Our polysilicon transaction and shipment volumes have continued to pick up in the third quarter, reflecting increased confidence in the quality and an ongoing preference for our products from customers. On the cost side, total production cost remained flat sequentially at $5.95/kg, with cash cost edging down by 0.4% to $4.57/kg and manufacturing costs in RMB terms declining slightly." "In light of the current market dynamics, we expect total polysilicon production volume in the third quarter of 2026 to be approximately 40,000 MT to 45,000 MT. For the full year of 2026, we expect production volume to be in the range of 160,000 MT to 180,000 MT." "Polysilicon market prices came under further downward pressure during the second quarter, with N-type polysilicon prices falling from RMB 35-37/kg at the end of the first quarter to RMB 31-34/kg at the end of the second quarter. Amid subdued demand, depressed pricing and accumulating industry-wide inventories, polysilicon producers operated at low utilization rates, with aggregate output of 538,000 MT in the first half of 2026, representing a 9.8% year-on-year decrease. As we make our way through the third quarter, the continued roll-out of anti-involution measures is gaining momentum. In July, a series of mandatory national standards were issued for energy consumption and product efficiency across the solar PV value chain, including the final official version of a new standard setting energy consumption limits per unit of polysilicon output, which will take effect on January 1, 2027. Polysilicon manufacturers whose unit energy consumption exceeds 6.3 kgce/kg must complete corrective improvements by that date or face the risk of plant shutdown. Notably, this threshold of 6.3 kgce/kg is stricter than the 6.4 kgce/kg proposed in the draft, signaling regulators' commitment to accelerating the phase-out of inefficient capacity. On July 27, the China Photovoltaic Industry Association (CPIA) issued the General Principles for Cost Accounting Models in the Photovoltaic Industry, an initiative to regulate market competition and advance standardized industry governance that lays the foundation for price regulation enforcement. On July 31, the State Administration for Market Regulation (SAMR) issued price compliance guidance for the solar PV sector, promoting a structural shift from price competition to value-driven differentiation. The SAMR emphasized that solar PV companies must conduct price-compliance self-reviews and curb irrational low-price competition, and that the CPIA should strengthen industry self-regulation, promote the General Principles, and guide companies away from illegal pricing practices such as below-cost dumping. The SAMR also indicated that it will take enforcement action against non-compliant entities. Together with seven other polysilicon manufacturers, we jointly signed an initiative to eliminate below-cost sales and fully comply with energy consumption standards on August 6. As a result of these collective measures, polysilicon prices are beginning to show signs of a recovery, with spot prices stabilizing and forward prices rebounding by more than 10% from their recent low. " "We are also diversifying beyond our core polysilicon business to hedge against solar PV cyclicality, targeting the fast-growing AI data center (AIDC) power infrastructure market. On June 3, 2026, we announced the signing of an investment agreement to establish a manufacturing base focused on the R&D, manufacturing and sale of next-generation energy solutions and related equipment for AIDCs. This includes energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the industry's transition to high-voltage direct current architecture, such as the 800V DC standard advanced by Nvidia and other leading AI infrastructure providers. The platform is anchored by Daqo Group, our affiliated entity under common beneficial ownership with Daqo New Energy Corp., which brings over 40 years of power equipment manufacturing expertise, established technology, and deep talent and customer relationships to accelerate our entry into this segment. We view AIDC power infrastructure as a structural growth opportunity that complements our core business and broadens our earnings base. Consistent with our strong track record having navigated several polysilicon cycles, we intend to pursue this expansion in a disciplined manner that preserves our balance sheet strength." "Despite a challenging environment, the solar PV industry continues to exhibit compelling long-term growth prospects. Growing vulnerabilities in global energy markets have sparked widespread concerns about national energy security, in which the solar PV and renewable energy sectors can play a crucial role. As one of the world's lowest-cost producers of the highest-quality N-type polysilicon, backed by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated market recovery and long-term growth opportunities. We will continue to strengthen our competitive edge through advancements in high-efficiency N-type technology and cost optimization via digital transformation and AI adoption. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in shaping that future." Outlook and guidance The Company expects to produce approximately 40,000 MT to 45,000 MT of polysilicon during the third quarter of 2026. The Company expects to produce approximately 160,000 MT to 180,000 MT of polysilicon for the full year of 2026, inclusive of the impact of the Company's annual facility maintenance. This outlook reflects Daqo New Energy's current and preliminary view as of the date of this press release and may be subject to changes. The Company's ability to achieve these projections is subject to risks and uncertainties. See "Safe Harbor Statement" at the end of this press release. Second Quarter 2026 Results Revenues Revenues were $62.7 million, compared to $26.7 million in the first quarter of 2026 and $75.2 million in the second quarter of 2025. The increase in revenues compared to the first quarter of 2026 was primarily driven by higher sales volumes, as the Company resumed normal sales activities starting in June following a prolonged period with no new policy developments. Gross loss Gross loss was $82.7 million, compared to $139.4 million in the first quarter of 2026 and $81.4 million in the second quarter of 2025. Gross margin was negative 132.0%, compared to negative 521.5% in the first quarter of 2026 and negative 108.3% in the second quarter of 2025. The sequential improvement in gross margin was primarily due to a decrease in provisions for inventory impairment, which was $55.7 million in the second quarter of 2026, compared to $98.9 million in the first quarter of 2026. Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses were $15.8 million, compared to $12.2 million in the first quarter of 2026 and $32.1 million in the second quarter of 2025. The sequential increase was primarily due to higher sales volume in the second quarter of 2026. The year-over-year decrease was also because the Company recognized $18.6 million in non-cash share-based compensation related to its share incentive plans in the second quarter of 2025. Research and development expenses Research and development (R&D) expenses were $1.6 million, compared to $0.8 million in the first quarter of 2026 and $0.8 million in the second quarter of 2025. The increase is primarily due to R&D of next-generation energy solutions for AIDCs. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. Loss from operations and operating margin As a result of the foregoing, loss from operations was $98.1 million, compared to $150.8 million in the first quarter of 2026 and $115.0 million in the second quarter of 2025. Operating margin was negative 156.5%, compared to negative 564.4% in the first quarter of 2026 and negative 152.9% in the second quarter of 2025. Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS As a result of the foregoing, net loss attributable to Daqo New Energy Corp. shareholders was $81.2 million, compared to $88.4 million in the first quarter of 2026 and $76.5 million in the second quarter of 2025. Loss per basic ADS was $1.20, compared to $1.31 in the first quarter of 2026 and $1.14 in the second quarter of 2025. Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted loss per ADS (non-GAAP) Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $81.2 million, compared to $88.4 million in the first quarter of 2026 and $57.9 million in the second quarter of 2025. Adjusted loss per basic ADS was $1.20, compared to $1.31 in the first quarter of 2026 and $0.86 in the second quarter of 2025. EBITDA EBITDA (non-GAAP) was negative $29.3 million, compared to negative $83.1 million in the first quarter of 2026 and negative $48.2 million in the second quarter of 2025. EBITDA margin (non-GAAP) was negative 46.8%, compared to negative 311.1% in the first quarter of 2026 and negative 64.0% in the second quarter of 2025. Financial Condition As of June 30, 2026, the Company had $555.3 million in cash, cash equivalents and restricted cash, compared to $559.4 million as of March 31, 2026 and $598.6 million as of June 30, 2025. As of June 30, 2026, short-term investment was $250.0 million, compared to $288.3 million as of March 31, 2026 and $418.8 million as of June 30, 2025. As of June 30, 2026, notes receivable balance was $71.7 million, compared to $20.8 million as of March 31, 2026 and $49.0 million as of June 30, 2025. Notes receivable represents bank notes with maturity within six months. As of June 30, 2026, held-to-maturity investment was $51.0 million, compared to $50.3 million as of March 31, 2026 and nil as of June 30, 2025. As of June 30, 2026, the balance of fixed term deposit within one year was $928.9 million, compared to $1.0 billion as of March 31, 2026 and $960.7 million as of June 30, 2025. Cash Flows For the six months ended June 30, 2026, net cash used in operating activities was $276.2 million, compared to $105.4 million in the same period of 2025. For the six months ended June 30, 2026, net cash used in investing activities was $159.6 million, compared to $342.7 million in the same period of 2025. The net cash used in investing activities in 2026 was primarily related to the purchase of short-term investments and fixed term deposits. For the six months ended June 30, 2026, net cash used in financing activities was $7.8 million, compared to $32.0 thousand in the same period of 2025. The net cash used in financing activities in 2026 was primarily related to $7.8 million in stock repurchases made by the Company's subsidiary, Xinjiang Daqo, from its minority shareholders. Use of Non-GAAP Financial Measures To supplement Daqo New Energy's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key elements of the Company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company's operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies. The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company's core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation. A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document. Conference Call The Company will hold a conference call to discuss the financial results at 8:00 AM U.S. Eastern Time on Thursday, August 20, 2026 (8:00 PM Beijing / Hong Kong time on the same day). Dial-in details for the earnings conference call are as follows: Participant dial in (U.S./Canada toll free): +1-888-346-8982 Participant international dial in: +1-412-902-4272 China mainland toll free: 4001-201203 Hong Kong toll free: 800-905945 Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy call. Webcast link: https://app.webinar.net/2NXKalz98Rz A replay of the call will be available 1 hour after the conclusion of the conference call through August 27, 2026. Dial in details for the replay are as follows: U.S./Canada toll free: +1-855-669-9658 International toll: +1-412-317-0088 Replay access code: 6672616 To access the replay through an international dial-in number, please visit the link below. https://services.choruscall.com/ccforms/replay.html Participants will be asked to provide their name and company name upon joining the call. About Daqo New Energy Corp. Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufacturers, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world's lowest cost producers of high-purity polysilicon. 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 third quarter and the full year of 2026 and quotations from management in these announcements, as well as Daqo New Energy's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company's ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company's ability to lower its production costs; and changes in political and regulatory environment. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. View original content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-second-quarter-2026-financial-results-302856319.html

Golar LNG (GLNG) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +126.67%. A quarter ago, it was expected that this operator of carriers for natural gas shipping would post earnings of $0.31 per share when it actually produced earnings of $0.49, delivering a surprise of +58.06%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Golar LNG, which belongs to the Zacks Oil and Gas - Integrated - International industry, posted revenues of $130.48 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.36%. This compares to year-ago revenues of $75.67 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Golar LNG shares have added about 37.3% since the beginning of the year versus the S&P 500's gain of 13.2%. While Golar LNG has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Golar LNG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $67.63 million in revenues for the coming quarter and $1.05 on $397.83 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - International is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Daqo New Energy (DQ), another stock in the broader Zacks Oils-Energy sector, has yet to report results for the quarter ended June 2026. This solar panel parts maker is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +75.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Daqo New Energy's revenues are expected to be $59.2 million, down 21.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Golar LNG Limited (GLNG) : Free Stock Analysis Report DAQO New Energy Corp. (DQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sunrun (RUN) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +425.00%. A quarter ago, it was expected that this solar energy products distributor would post a loss of $0.05 per share when it actually produced earnings of $0.62, delivering a surprise of +1340%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sunrun, which belongs to the Zacks Solar industry, posted revenues of $869.99 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 20.35%. This compares to year-ago revenues of $569.34 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sunrun shares have lost about 40.1% since the beginning of the year versus the S&P 500's gain of 13%. While Sunrun has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sunrun was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $810.44 million in revenues for the coming quarter and $1.01 on $3.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Solar is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Daqo New Energy (DQ), another stock in the same industry, has yet to report results for the quarter ended June 2026. This solar panel parts maker is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +75.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Daqo New Energy's revenues are expected to be $59.2 million, down 21.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sunrun Inc. (RUN) : Free Stock Analysis Report DAQO New Energy Corp. (DQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Severe Q1 hit: Revenue plunged to RMB 26.7 million with a gross loss of RMB 139.4 million and net loss of RMB 88.4 million, driven by a RMB 98.4 million inventory-impairment as the company curtailed sales when market prices fell below production cost. Production vs. sales and liquidity: Daqo produced 43,402 MT (above guidance) while selling only 4,482 MT and ran ~57% utilization, but it retains a strong liquidity buffer of about $2.0 billion and zero debt, allowing a disciplined pause on below-cost selling. Regulatory pivot could change pricing: Chinese authorities are preparing a new cost model and potential price guidance expected around June, which management says could lift cash prices from roughly RMB 35–40/kg to RMB 40–45+/kg and materially affect Daqo’s utilization and market-share strategy. Interested in DAQO New Energy Corp.? Here are five stocks we like better. Daqo New Energy: Solar Monopoly Launches $100M Buyback DAQO New Energy (NYSE:DQ) reported first-quarter 2026 results amid what management described as continued industry weakness, with seasonal softness, high inventory levels, and sustained overcapacity pressuring polysilicon pricing. Deputy CEO Anita Zhu said sentiment across the solar PV industry “remained cautious” in the first quarter due to seasonal factors and elevated inventories, and was “further exacerbated by rising module prices” linked to higher silver, aluminum and glass costs. She added that geopolitical tensions in the Middle East also weighed on demand in that region. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? The Solar Stock Battle: Is Daqo or JinkoSolar Your Next Big Win? Zhu said persistent industry overcapacity continued to push polysilicon prices lower, contributing to quarterly operating and net losses. She noted that Daqo maintained “a robust and healthy balance sheet with zero debt.” Zhu highlighted the company’s liquidity position as of March 31, 2026, including cash, investments and deposits that she said totaled about $2.0 billion in assets convertible to cash. She listed the components as: cash balance of $559.4 million, short-term investments of $288.3 million, bank notes receivable of $20.8 million, held-to-maturity investments of $50.3 million, and fixed-term bank deposits of $1.1 billion. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Wall Street Believes in First Solar Stock’s Bull Cycle Operationally, Zhu said Daqo ran its main capacity utilization rate at approximately 57% during the quarter. Total production from its two polysilicon facilities was 43,402 metric tons, above the company’s guidance range of 35,000 to 40,000 metric tons. With market prices falling below production cost, Zhu said the company followed Chinese authority self-regulation guidelines and “declin[ed] to engage in below-cost sales,” taking a “disciplined wait-and-see approach” while awaiting further implementation of national anti-monopoly policies previously discussed. → Did Qualcomm Just Put Apple in Check? As a result, sales volume fell to 4,482 metric tons, while average selling price increased 2.3% sequentially to $5.96 per kilogram, according to Zhu. Zhu said N-type polysilicon prices fell from RMB 48–RMB 55 per kilogram at the end of 2025 to RMB 35–RMB 37 per kilogram by the end of the first quarter. She added that prices entering the second quarter were showing signs of “bottoming out,” with weekly declines easing. She also pointed to April 17, when multiple Chinese agencies—including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the State Administration for Market Regulation, and the National Energy Administration—held a symposium focused on regulating competition in the solar PV sector. Zhu said the meeting reinforced the need to address “irrational competition” and curb “destructive involution,” and that authorities were required to deploy measures spanning capacity regulation, standards guidance, innovation-driven development, price law enforcement, quality supervision, M&A, and intellectual property protection. During Q&A, CFO Ming Yang said the government was working on a new cost model “consistent across all the manufacturers,” covering inputs such as materials, depreciation, and labor. He said the company’s understanding was that a new round of cost determination could come out “in the next two months or so,” and later added, “Our understanding, it should be around June.” Yang said an updated price guidance could follow once the cost determination is completed. Asked what enforcement could look like, Yang said penalties could be “fairly significant,” and added that in a worst-case scenario authorities “could revoke your manufacturing license, or shut down your electricity,” though he emphasized the company had not yet seen enforcement actions take place. Yang also discussed potential price scenarios. Without enforcement, he said the cash price range could be RMB 35–RMB 40 per kilogram, while with price guidance it “should be in the range of RMB 40–RMB 45 or maybe even higher,” noting those figures were inclusive of VAT. CFO Ming Yang reported revenue of RMB 26.7 million, down from RMB 221.7 million in the fourth quarter of 2025 and RMB 124.0 million in the first quarter of 2025. He attributed the sequential decline primarily to lower sales volume as the company reduced sales “in light of the relatively low selling prices.” Gross loss was RMB 139.4 million, compared with gross profit of RMB 15.4 million in the prior quarter and gross loss of RMB 81.5 million a year earlier. Gross margin was -521%, compared with 7% in the fourth quarter of 2025 and -65.8% in the first quarter of 2025. Yang said the sequential decline was mainly due to a higher provision for inventory impairment. Cost of revenue included RMB 98.4 million of inventory impairment provisions, which Yang said was driven by end-of-quarter market polysilicon pricing below production cost. SG&A: RMB 12.2 million, down from RMB 18.7 million in Q4 2025 and RMB 35.0 million in Q1 2025. Yang said the year-over-year decline reflected, in part, RMB 18.6 million of non-cash share-based compensation recorded in Q1 2025. R&D: RMB 0.8 million, compared with RMB 0.7 million in Q4 2025 and RMB 0.5 million in Q1 2025. Operating loss: RMB 150.8 million, versus RMB 20.9 million in Q4 2025 and RMB 114.0 million in Q1 2025. Net loss attributable to shareholders: RMB 88.4 million, versus RMB 7.3 million in Q4 2025 and RMB 71.8 million in Q1 2025. Loss per basic ADS: RMB 1.31, versus RMB 0.11 in Q4 2025 and RMB 1.07 in Q1 2025. EBITDA: RMB -83.0 million, compared with RMB 52.5 million in Q4 2025 and RMB -48.0 million in Q1 2025. For the second quarter of 2026, Zhu said the company expects total polysilicon production of approximately 35,000 to 40,000 metric tons. For full-year 2026, she said Daqo expects production volume to remain in the range of 140,000 to 170,000 metric tons. On utilization, Yang told analysts the company planned to operate at roughly 50% to 55% in the near term, saying Daqo was maintaining utilization because it was running at a relatively optimal operating condition for quality and cost. However, he said the approach could change depending on whether authorities enforce the price law. In a scenario where policy enforcement does not materialize and manufacturers continue selling below cost, Yang said Daqo would lower utilization and “start to sell at close to market pricing,” adding that the company’s balance sheet position could allow it to endure a prolonged downturn. Conversely, if government enforcement leads manufacturers to sell above cost, he said Daqo would be positioned to maintain utilization and regain market share. On costs, Yang said the company expected cash costs in the second quarter to be in line in renminbi terms and “trending slightly lower over the next quarters,” describing a “fairly steady cost structure.” DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production. Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China's Xinjiang Uygur Autonomous Region. The article "DAQO New Energy Q1 Earnings Call Highlights" was originally published by MarketBeat.

SHANGHAI, April 29, 2026 /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 ended March 31, 2026. First Quarter 2026 Financial and Operating Highlights Aggregate of cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed term bank deposit balance was $2.00 billion at the end of Q1 2026, compared to $2.27 billion at the end of Q4 2025 Polysilicon production volume was 43,402 MT in Q1 2026, compared to 42,181 MT in Q4 2025 Polysilicon sales volume was 4,482 MT in Q1 2026, compared to 38,167 MT in Q4 2025 Polysilicon average total production cost(1) was $5.95/kg in Q1 2026, compared to $5.83/kg in Q4 2025 Polysilicon average cash cost(1) was $4.59/kg in Q1 2026, compared to $4.46/kg in Q4 2025 Polysilicon average selling price (ASP) was $5.96/kg in Q1 2026, compared to $5.83/kg in Q4 2025 Revenue was $26.7 million in Q1 2026, compared to $221.7 million in Q4 2025 Gross loss was $139.4 million in Q1 2026, compared to gross profit of $15.4 million in Q4 2025; gross margin was negative 521.5% in Q1 2026, compared to 7.0% in Q4 2025 Net loss attributable to Daqo New Energy Corp. shareholders was $88.4 million in Q1 2026, compared to $7.3 million in Q4 2025; loss per basic American Depositary Share (ADS)(3) was $1.31 in Q1 2026, compared to $0.11 in Q4 2025 Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $88.4 million in Q1 2026, compared to $7.3 million in Q4 2025 Adjusted loss per basic ADS(3) (non-GAAP)(2) was $1.31 in Q1 2026, compared to adjusted loss per basic ADS(3) (non-GAAP)(2) of $0.11 in Q4 2025; EBITDA (non-GAAP)(2) was negative $83.1 million in Q1 2026, compared to $52.5 million in Q4 2025; EBITDA margin (non-GAAP)(2) was negative 311.1% in Q1 2026, compared to 23.7% in Q4 2025 Management Remarks Mr. Xiang Xu, CEO of Daqo New Energy, commented, "In the first quarter of 2026, market sentiment across the solar PV industry remained cautious amid seasonal softness and elevated inventory levels. It was further exacerbated by rising module prices, driven by higher silver, aluminum, and glass costs, which led to a market slowdown in China. Geopolitical tensions in the Middle East also weighed on end-market demand in the region. Against this backdrop, persistent industry overcapacity continued to exert downward pressure on polysilicon prices, resulting in quarterly operating and net losses. Notwithstanding these headwinds, we continued to maintain a robust and healthy balance sheet with zero debt. As of March 31, 2026, we held a cash balance of $559.4 million, short-term investments of $288.3 million, bank notes receivables of $20.8 million, held-to-maturity investments of $50.3 million, and a fixed term bank deposit balance of $1.1 billion. In total, these assets that can be converted into cash stood at $2.0 billion, providing us with ample liquidity. This solid financial position gives us the confidence and strategic flexibility to navigate the current market downturn." "On the operational front, we continued to take proactive measures to navigate challenging market conditions and weak selling prices, with nameplate capacity utilization rate operating at approximately 57%. Total production volume at our two polysilicon facilities was 43,402 MT for the quarter, exceeding our guidance range of 35,000 MT to 40,000 MT. With market prices for polysilicon experiencing a notable decline to be below production costs during the quarter, we adhered to the Chinese authorities' self-regulation guidelines by declining to engage in below-cost sales. We adopted a disciplined, wait-and-see approach pending further implementation of the national anti-involution policies we highlighted last quarter. As a result, our sales volume dropped to 4,482 MT, while our average selling price increased 2.3% sequentially to $5.96/kg. On the cost side, total production and cash costs increased marginally by 2% and 3%, respectively, on a sequential basis, primarily driven by exchange rate movements. However, despite higher silicon metal costs, manufacturing costs in RMB terms actually declined slightly on a sequential basis, reflecting our continued improvements in manufacturing efficiency." "In light of the current market dynamics, we expect total polysilicon production volume in the second quarter of 2026 to be approximately 35,000 MT to 40,000 MT. For the full year of 2026, we expect production volume to remain in the range of 140,000 MT to 170,000 MT." "With the solar market impacted by seasonality surrounding the Chinese New Year holidays and the absence of concrete updates on capacity rationalization policies, polysilicon transactions and shipment volumes remained low during the quarter. N-type polysilicon prices dropped from RMB 48-55/kg at the end of 2025 to RMB 35-37/kg by the end of the first quarter. However, polysilicon prices heading into the second quarter are showing signs of bottoming out, with weekly declines gradually easing. While producers awaited clear guidelines from authorities to tackle overcapacity, a weak demand outlook, industry inventory build-up, and financial pressure forced several peers to adjust their production and pricing strategies toward a more market-oriented approach. As a result, industry-level monthly polysilicon supply fell to approximately 93,000 MT during the quarter, representing an industry average utilization rate of just 39%. Looking ahead, we expect government authorities to strengthen the anti-involution policies necessary to address these industry-wide overcapacity issues. As an encouraging move, on April 17, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the State Administration for Market Regulation, the National Energy Administration, and other key national departments jointly held a symposium on regulating market competition within the solar PV sector, reinforcing the urgent need to address irrational competition and curb destructive involution. Additionally, all relevant authorities are now required to deploy concerted measures to strengthen industry governance and promote the high-quality development of the solar PV industry, including in respect of capacity regulation, standards guidance, innovation-driven development, price law enforcement, quality supervision, mergers and acquisitions, and intellectual property rights protection." "More broadly, the solar PV industry continues to exhibit compelling long-term growth prospects. Growing vulnerabilities in global energy markets have sparked widespread concerns about national energy security, in which the solar PV and renewable energy sectors can play a crucial role. As one of the world's lowest-cost producers of the highest-quality N-type polysilicon, backed by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated market recovery and long-term growth opportunities. We will continue to strengthen our competitive edge through advancements in high-efficiency N-type technology and cost optimization via digital transformation and AI adoption. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in shaping that future." Outlook and guidance The Company expects to produce approximately 35,000 MT to 40,000 MT of polysilicon during the second quarter of 2026. The Company expects to produce approximately 140,000 MT to 170,000 MT of polysilicon for the full year of 2026, inclusive of the impact of the Company's annual facility maintenance. This outlook reflects Daqo New Energy's current and preliminary view as of the date of this press release and may be subject to changes. The Company's ability to achieve these projections is subject to risks and uncertainties. See "Safe Harbor Statement" at the end of this press release. First Quarter 2026 Results Revenues Revenues were $26.7 million, compared to $221.7 million in the fourth quarter of 2025 and $123.9 million in the first quarter of 2025. The decrease in revenues compared to the fourth quarter of 2025 was primarily due to a decrease in sales volume, as the Company reduced sales in light of the relative low selling prices. Gross (loss)/profit and margin Gross loss was $139.4 million, compared to gross profit of $15.4 million in the fourth quarter of 2025 and gross loss of $81.5 million in the first quarter of 2025. Gross margin was negative 521.5%, compared to 7.0% in the fourth quarter of 2025 and negative 65.8% in the first quarter of 2025. The decrease in gross margin compared to the fourth quarter of 2025 was primarily due to an increase in provisions for inventory impairment. Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses were $12.2 million, compared to $18.7 million in the fourth quarter of 2025 and $35.1 million in the first quarter of 2025. The sequential decrease was primarily due to lower sales volume in the first quarter of 2026. The year-over-year decrease was also because the Company recognized $18.6 million in non-cash share-based compensation related to its share incentive plans in the first quarter of 2025. Research and development expenses Research and development (R&D) expenses were $0.8 million, compared to $0.7 million in the fourth quarter of 2025 and $0.5 million in the first quarter of 2025. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. Loss from operations and operating margin As a result of the foregoing, loss from operations was $150.8 million, compared to $20.9 million in the fourth quarter of 2025 and $114.1 million in the first quarter of 2025. Operating margin was negative 564.4%, compared to negative 9.4% in the fourth quarter of 2025 and negative 92.0% in the first quarter of 2025. Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS As a result of the foregoing, net loss attributable to Daqo New Energy Corp. shareholders was $88.4 million, compared to $7.3 million in the fourth quarter of 2025 and $71.8 million in the first quarter of 2025. Loss per basic ADS was $1.31, compared to $0.11 in the fourth quarter of 2025 and $1.07 in the first quarter of 2025. Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted loss per ADS (non-GAAP) Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $88.4 million, compared to $7.3 million in the fourth quarter of 2025 and $53.2 million in the first quarter of 2025. Adjusted loss per basic ADS was $1.31, compared to $0.11 in the fourth quarter of 2025 and $0.80 in the first quarter of 2025. EBITDA EBITDA (non-GAAP) was negative $83.1 million, compared to $52.5 million in the fourth quarter of 2025 and negative $48.4 million in the first quarter of 2025. EBITDA margin (non-GAAP) was negative 311.1%, compared to 23.7% in the fourth quarter of 2025 and negative 39.1% in the first quarter of 2025. Financial Condition As of March 31, 2026, the Company had $559.4 million in cash, cash equivalents and restricted cash, compared to $980.3 million as of December 31, 2025 and $791.9 million as of March 31, 2025. As of March 31, 2026, short-term investment was $288.3 million, compared to $114.0 million as of December 31, 2025 and $168.2 million as of March 31, 2025. As of March 31, 2026, the notes receivable balance was $20.8 million, compared to $135.5 million as of December 31, 2025 and $62.7 million as of March 31, 2025. Notes receivable represents bank notes with maturity within six months. As of March 31, 2026, held-to-maturity investment was $50.3 million, compared to nil as of December 31, 2025 and nil as of March 31, 2025. As of March 31, 2026, the balance of fixed term deposit within one year was $1.0 billion, compared to $972.4 million as of December 31, 2025 and $1.1 billion as of March 31, 2025. Cash Flows For the three months ended March 31, 2026, net cash used in operating activities was $147.5 million, compared to $38.9 million in the same period of 2025. For the three months ended March 31, 2026, net cash used in investing activities was $275.8 million, compared to $211.0 million in the same period of 2025. The net cash used in investing activities in 2026 was primarily related to the purchase of short-term investments and fixed term deposits. For the three months ended March 31, 2026, net cash used in financing activities was $7.8 million, compared to nil in the same period of 2025. The net cash used in financing activities in 2026 was primarily related to $7.8 million in stock repurchases made by the Company's subsidiary, Xinjiang Daqo, from its minority shareholders. Use of Non-GAAP Financial Measures To supplement Daqo New Energy's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company's operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies. The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company's core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation. A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document. Conference Call The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on Wednesday, April 29, 2026 (8:00 PM Beijing / Hong Kong time on the same day). The dial-in details for the earnings conference call are as follows: Participant dial in (U.S. toll free): +1-888-346-8982 Participant international dial in: +1-412-902-4272 China mainland toll free: 4001-201203 Hong Kong toll free: 800-905945 Hong Kong local toll: +852-301-84992 Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call. Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=iLpvzzAF A replay of the call will be available 1 hour after the conclusion of the conference call through May 6, 2026. The dial-in details for the conference call replay are as follows: U.S. toll free: +1-877-344-7529 International toll: +1-412-317-0088 Canada toll free: 855-669-9658 Replay access code: 7616875 To access the replay through an international dial-in number, please select the link below. https://services.choruscall.com/ccforms/replay.html Participants will be asked to provide their name and company name upon entering the call. About Daqo New Energy Corp. Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufacturers, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world's lowest cost producers of high-purity polysilicon. 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 year of 2026 and quotations from management in these announcements, as well as Daqo New Energy's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company's ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company's ability to lower its production costs; and changes in political and regulatory environment. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. View original content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-first-quarter-2026-financial-results-302757014.html