Daqo New Energy Corp. Q3 FY2025 earnings call

• Market conditions: Solar PV value chain prices recovered in Q3 2025, with the polysilicon sector reaching an inflection point.
• Operational: Implemented proactive measures to counter oversupply, maintained 40% capacity utilization, production of 30,650 mt, sales volume surged, production and cash costs declined.
• Industry: China's anti-involution initiatives, new energy consumption standard draft, expected capacity reduction to ease oversupply, polysilicon prices rebounded.
• Financials: Positive EBITDA of $45.8 million, adjusted net income of $3.7 million, strong balance sheet with $2.21 billion in liquid assets convertible to cash.

For the third quarter of 2025, Daqo New Energy's polysilicon segment had revenues of $244.6 million, a significant increase from $75.2 million in the second quarter. Gross profit was $9.7 million compared to a gross loss of $81 million in the second quarter. Gross margin was 3.9%. Polysilicon production for the quarter was 30,650 metric tons with a nameplate capacity utilization rate of 40%. Sales volume surged to 42,406 metric tons from 18,126 metric tons in the previous quarter. Production costs declined 12% to $6.38 per kilogram, and cash costs decreased 11% to $4.54 per kilogram, the lowest in the company's history.

• Expect Q1 2025 polysilicon production to be 39,500-42,500 metric tons, full-year 2025 production 121,000-124,000 metric tons.
• Q4 gross margin expected positive, 2026 production utilization likely over 50%.

• Forward-looking statements involve inherent risks and uncertainties.
• Industry oversupply risks, government regulation impact on compliance, energy consumption standard non-compliance risks.

Q: On gross margins, expectation for Q4 and 2026?

A: Ming Yang states Q4 gross margin expected positive, 2026 expected positive.

Q: Capacity and industry actions?

A: Anita Zhu talks about industry self-discipline, government regulations on anti-involution and energy consumption standards.

Q: Buyback progress?

A: Ming Yang mentions waiting for market clarity and consolidation details before resuming share buyback.

Q: Production cost and ASP expectations?

A: Ming Yang discusses continued cost reduction, Anita Zhu talks about price stability post-consolidation with potential uptick.