Daqo New Energy Announces Unaudited Second Quarter 2025 Results
SHANGHAI, Aug. 26, 2025 /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 of 2025.
Second Quarter 2025 Financial and Operating Highlights
Total cash, short-term investments, bank notes receivable and fixed term bank deposit balance was $2.06 billion at the end of Q2 2025, compared to $2.15 billion at the end of Q1 2025
Polysilicon production volume was 26,012 MT in Q2 2025, compared to 24,810 MT in Q1 2025
Polysilicon sales volume was 18,126 MT in Q2 2025, compared to 28,008 MT in Q1 2025
Polysilicon average total production cost(1) was $7.26/kg in Q2 2025, compared to $7.57/kg in Q1 2025
Polysilicon average cash cost(1) was $5.12/kg in Q2 2025, compared to $5.31/kg in Q1 2025
Polysilicon average selling price (ASP) was $4.19/kg in Q2 2025, compared to $4.37/kg in Q1 2025
Revenue was $75.2 million in Q2 2025, compared to $123.9 million in Q1 2025
Gross loss was $81.4 million in Q2 2025, compared to $81.5 million in Q1 2025. Gross margin was -108.3% in Q2 2025, compared to -65.8% in Q1 2025
Net loss attributable to Daqo New Energy Corp. shareholders was $76.5 million in Q2 2025, compared to $71.8 million in Q1 2025
Loss per basic American Depositary Share (ADS)(3) was $1.14 in Q2 2025, compared to $1.07 in Q1 2025
Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $57.9 million in Q2 2025, compared to $53.2 million in Q1 2025
Adjusted loss per basic ADS(3) (non-GAAP)(2) was $0.86 in Q2 2025, compared to $0.80 in Q1 2025
EBITDA (non-GAAP)(2) was -$48.2 million in Q2 2025, compared to -$48.4 million in Q1 2025. EBITDA margin (non-GAAP)(2) was -64.0% in Q2 2025, compared to -39.1% in Q1 2025
Three months ended
US$ millions
except as indicated otherwise
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Revenues
75.2
123.9
219.9
Gross loss
(81.4)
(81.5)
(159.2)
Gross margin
(108.3) %
(65.8) %
(72.4) %
Loss from operations
(115.0)
(114.1)
(195.6)
Net loss attributable to Daqo New Energy Corp. shareholders
(76.5)
(71.8)
(119.8)
Loss per basic ADS(3) ($ per ADS)
(1.14)
(1.07)
(1.81)
Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders
(57.9)
(53.2)
(98.8)
Adjusted loss per basic ADS(3) (non-GAAP)(2) ($ per ADS)
(0.86)
(0.80)
(1.50)
EBITDA (non-GAAP)(2)
(48.2)
(48.4)
(144.9)
EBITDA margin (non-GAAP)(2)
(64.0) %
(39.1) %
(65.9) %
Polysilicon sales volume (MT)
18,126
28,008
43,082
Polysilicon average total production cost ($/kg)(1)
7.26
7.57
6.19
Polysilicon average cash cost (excl. dep'n) ($/kg)(1)
5.12
5.31
5.39
Notes:
(1) Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable costs relating to production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation cost and non-cash share-based compensation cost, divided by the production volume in the period indicated.
(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For more information on these non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliation of non-GAAP financial measures to comparable US GAAP measures" set forth at the end of this press release.
(3) ADS means American Depositary Share. One (1) ADS represents five (5) ordinary shares.
Management Remarks
Mr. Xiang Xu, CEO of Daqo New Energy, commented, "The solar PV industry faced continued challenges in the second quarter of 2025 with market prices across the solar value chain declining due to industry overcapacity and high inventory levels, remaining below cash cost levels. As a result, Daqo New Energy recorded quarterly operating and net losses. Nevertheless, we maintained a strong and healthy balance sheet with no financial debt. As of June 30, 2025, the Company had a cash balance of $599 million, short-term investments of $419 million, bank notes receivables of $49 million, and total fixed term bank deposit balance of $994 million. In total, our financial bank deposit and investment assets, readily convertible into cash if needed, stood at $2.06 billion, providing us with ample financial liquidity. With no financial debt, our solid financial position brings us confidence and strategic resilience to navigate the current market downturn and remain well positioned for long-term opportunities."
"On the operational front, the Company operated at a reduced utilization rate of approximately 34% of its nameplate capacity in response to challenging market conditions and weak selling prices. Total production volume at our two polysilicon facilities for the quarter was 26,012 MT, within our guidance range of 25,000 MT to 28,000 MT. Towards the end of the quarter, as Chinese authorities intensified efforts to curb disorderly competition, we proactively scaled back new sales orders in anticipation of a future price recovery. Accordingly, our sales volume for the quarter decreased to 18,126 MT from 28,008 MT in Q1. Due to lower utilization across our factories, idle facility related cost for the quarter was approximately $1.38/kg, primarily reflecting non-cash depreciation expenses. On a positive note, decline in the cost of silicon metal and reduced energy consumption drove our cash cost lower by 4% to $5.12/kg sequentially, including approximately $0.18/kg related to idle facility maintenance. Overall, polysilicon unit production cost decreased by 4% sequentially to an average of $7.26/kg, with lower unit depreciation costs resulting from higher production."
"In light of the current market conditions, we expect our total polysilicon production volume in the third quarter of 2025 to be approximately 27,000 MT to 30,000 MT. As a result, we anticipate our full year 2025 production volume to be in the range of 110,000 MT to 130,000 MT."
"During the second quarter, the solar PV industry remained in a cyclical trough, although proactive initiatives started to emerge toward the end of the quarter. On the demand side, China experienced a surge in installations under market-based reform policies and set a new global record with a staggering 93GW of new solar power capacity added in May. However, installations plummeted to 14GW in June following front-loading in earlier months ahead of the May 31, 2025 cutoff date for new projects. Polysilicon market prices trended downward during the quarter, falling from RMB39-45/kg in April to RMB32-35/kg by the end of June. According to industry statistics, overall industry polysilicon production for 2025 year-to-date has been running below overall demand and consumption, with monthly supply at approximately 100,000 to 110,000 MT. As a result, industry inventory decreased by an estimated 30,000 ton to 40,000 ton between January and July, leaving overall industry polysilicon inventory lower than at the beginning of the year.
Heading into Q3, Chinese authorities have demonstrated increased determination to address irrational competition and industry overcapacity, with the anti-involution initiative taking a leading role in sectors such as solar PV. On June 29, an article from China's official newspaper, People's Daily, highlighted the issue of oversupply and disruptive competition in the solar PV industry, calling for measures to curb vicious competition and promote high-quality development. On July 1, President Xi emphasized the need to regulate disorderly low-price competition and phase out outdated capacity at the Central Financial and Economic Affairs Commission meeting. The following day, the Ministry of Industry and Information Technology convened a symposium with 14 solar PV companies to accelerate the industry's transition toward high-quality growth. Most recently, on July 24, government authorities released a draft amendment to the Price Law, representing a significant step toward strengthening market supervision and deterring unfair pricing practices. The draft clarifies criteria for identifying unfair pricing behavior, such as low-price dumping, and strengthens legal accountability for price-related violations. As a result, polysilicon spot sales prices rebounded in July and polysilicon futures prices surged significantly, supported by favorable factors such as expected higher spot quotes and simultaneous increases in downstream product prices. For reference, the 2509 contract rose sharply from a low of RMB 30/kg in June 2025 to a record high of RMB 55/kg in July 2025, the strongest level since its listing."
"The solar PV industry continues to show strong long-term prospects. In the medium term, we believe that the combined effects of industry self-discipline and government anti-involution regulations will foster a healthier and more sustainable industry. In the long run, as one of the most cost-effective and sustainable energy sources globally, solar power is expected to remain a key driver of the global energy transition and sustainable development. Looking ahead, Daqo New Energy is well positioned to capitalize on the long-term growth in the global solar PV market and strengthen its competitive edge by enhancing its higher-efficiency N-type technology and optimizing its cost structure through digital transformation and AI adoption. As one of the world's lowest-cost producers with the highest-quality N-type product, a strong balance sheet and no financial debt, we are confident in our ability to weather the current market downturn, capitalize on market recovery, and emerge as a leader in the industry positioned to capture future growth."
Outlook and guidance
The Company expects to produce approximately 27,000 MT to 30,000MT of polysilicon during the third quarter of 2025. The Company expects to produce approximately 110,000 MT to 130,000 MT of polysilicon for the full year of 2025, 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 2025 Results
Revenues
Revenues were $75.2 million, compared to $123.9 million in the first quarter of 2025 and $219.9 million in the second quarter of 2024. The decrease in revenues compared to the first quarter of 2025 was primarily due to a decrease in the sales volume.
Gross loss and margin
Gross loss was $81.4 million, compared to $81.5 million in the first quarter of 2025 and $159.2 million in the second quarter of 2024. Gross margin was -108.3%, compared to -65.8% in the first quarter of 2025 and -72.4% in the second quarter of 2024. The decrease in gross margin compared to the first quarter of 2025 was primarily because sales volume decreased while idle cost remained relatively fixed.
Selling, general and administrative expenses
Selling, general and administrative expenses were $32.1 million, compared to $35.1 million in the first quarter of 2025 and $37.5 million in the second quarter of 2024. SG&A expenses during the second quarter included $18.6 million in non-cash share-based compensation cost related to the Company's share incentive plans, compared to $18.6 million in the first quarter of 2025.
Research and development expenses
Research and development (R&D) expenses were $0.8 million, compared to $0.5 million in the first quarter of 2025 and $1.8 million in the second quarter of 2024. Research and development 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 $115.0 million, compared to $114.1 million in the first quarter of 2025 and $195.6 million in the second quarter of 2024.
Operating margin was -152.9%, compared to -92.0% in the first quarter of 2025 and -89.0% in the second quarter of 2024.
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 $76.5 million, compared to $71.8 million in the first quarter of 2025 and $119.8 million in the second quarter of 2024.
Loss per basic American Depository Share (ADS) was $1.14, compared to $1.07 in the first quarter of 2025, and $1.81 in the second quarter of 2024.
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 $57.9 million, compared to $53.2 million in the first quarter of 2025 and $98.8 million in the second quarter of 2024.
Adjusted loss per basic American Depository Share (ADS) was $0.86, compared to $0.80 in the first quarter of 2025 and $1.50 in the second quarter of 2024.
EBITDA
EBITDA (non-GAAP) was -$48.2 million, compared to -$48.4 million in the first quarter of 2025 and -$144.9 million in the second quarter of 2024. EBITDA margin (non-GAAP) was -64.0%, compared to -39.1% in the first quarter of 2025 and -65.9% in the second quarter of 2024.
Financial Condition
As of June 30, 2025, the Company had $598.6 million in cash, cash equivalents and restricted cash, compared to $791.9 million as of March 31, 2025 and $997.5 million as of June 30, 2024. As of June 30, 2025, short-term investment was $418.8 million, compared to $168.2 million as of March 31, 2025 and $219.5 million as of June 30, 2024. As of June 30, 2025, notes receivable balance was $49.0 million, compared to $62.7 million as of March 31, 2025 and $80.7 million as of June 30, 2024. Notes receivable represents bank notes with maturity within six months. As of June 30, 2025, the balance of fixed term deposits within one year was $960.7 million, compared to $1,125.3 million as of March 31, 2025 and $1,168.0 million as of June 30, 2024.
Cash Flows
For the six months ended June 30, 2025, net cash used in operating activities was $105.4 million, compared to $278.6 million in the same period of 2024.
For the six months ended June 30, 2025, net cash used in investing activities was $342.7 million, compared to $1.7 billion in the same period of 2024. The net cash used in investing activities in the first half of 2025 was primarily related to purchase of short-term investments and fixed term deposits.
For the six months ended June 30, 2025, net cash used in financing activities was $32.0 thousand, compared to $43.0 million in the same period of 2024.
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. ...
