Xinjiang Daqo New Energy (688303) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 1,470 million, down 67.93% year-over-year due to a sharp decline in polysilicon prices and reduced production volume.

• Net loss attributable to shareholders was RMB -1,147 million, a significant increase in loss compared to the same period last year.

• The company implemented a proactive production cut strategy, reducing polysilicon output by about 60% year-over-year to 50,821 tons, aiming to alleviate market oversupply and mitigate losses.

• Cash reserves, including bank deposits and structured deposits, totaled RMB 12.09 billion as of June 30, 2025, with no interest-bearing debt and a low asset-liability ratio of 8.04%.

Financial highlights

• Operating income: RMB 1,470 million, down 67.93% year-over-year.

• Net loss attributable to shareholders: RMB -1,147 million (H1 2024: RMB -670 million).

• Basic and diluted EPS: -0.53 yuan (H1 2024: -0.31 yuan).

• Operating cash outflow: RMB -1,608 million, improved from RMB -3,465 million in H1 2024.

• Gross margin and profitability declined sharply due to lower polysilicon prices and higher unit costs from reduced utilization.

Outlook and guidance

• Q3 2025 production is expected at 27,000–30,000 tons; full-year 2025 output is forecast at 110,000–130,000 tons.

• The company will continue to control production and inventory, optimize cost structure, and maintain a focus on cash flow and cost reduction.

• Management remains optimistic about the long-term outlook for the photovoltaic industry, citing recent policy support and a rebound in polysilicon prices since June 2025.