Daqo New Energy (DQ) investor relations material

Executive summary

• Q3 shipment growth lifted revenue to $194.2 million and narrowed net loss to $52.9 million; results remained weaker year over year.

• Higher volumes, improved selling prices, lower production costs and reduced inventory impairments drove sequential improvement.

• Readily convertible assets totaled $2.06 billion at quarter-end, with zero debt.

Financial highlights

• Revenue was $194.2 million, versus $62.7 million in Q2 2026 and $244.6 million in Q3 2025.

• Gross loss was $60.6 million and gross margin -31.2%, versus a -132.0% margin in Q2 and 3.9% in Q3 2025.

• Operating loss was $78.6 million; net loss attributable to shareholders was $52.9 million, versus $81.2 million in Q2.

• Basic ADS loss was $0.78, versus $1.20 in Q2 and $0.22 in Q3 2025; adjusted Q3 2026 loss also was $0.78 per ADS.

• Non-GAAP EBITDA was -$9.2 million with a -4.7% margin, versus -$29.3 million and -46.8% in Q2.

Outlook and guidance

• Q4 2026 polysilicon production guidance is 35,000–45,000 MT; FY 2026 guidance is 175,000–185,000 MT, including annual facility maintenance.

• Near-term utilization may be reduced to align production with demand and support inventory destocking.

• Q4 shipments are expected to be close to or above production; $140 million in contracted customer advances is expected to be delivered in Q4.

• Production costs are expected to remain similar in Q4 and 2027, with a possible slight reduction in 2027.

• 2027 polysilicon sales aim to maintain ~15% market share; AIDC sales are targeted to begin in 2027, with positive operating cash flow targeted by year-end.