Xinjiang Daqo New Energy (688303) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 622.8 million, down 57.63% year-over-year due to weak demand and price declines in the polysilicon industry.

• Net loss attributable to shareholders was RMB -1,595 million, with a significant increase in inventory write-downs and shrinking gross margins.

• The company remains a leading polysilicon producer in China, with a 16.19% domestic market share and strong cost control despite industry headwinds.

• Cash reserves and financial structure remain robust, with no interest-bearing debt and an asset-liability ratio of 7.87%.

Financial highlights

• Operating income: RMB 622.8 million, down 57.63% year-over-year.

• Net loss attributable to shareholders: RMB -1,595 million (H1 2025: RMB -1,147 million).

• Basic and diluted EPS: -0.74 yuan (H1 2025: -0.53 yuan).

• Gross margin compressed due to lower polysilicon prices and increased inventory write-downs (RMB 1,025 million in impairment losses).

• Operating cash flow: net outflow of RMB 2,243 million, reflecting lower sales and higher operating expenses post-expansion.

Outlook and guidance

• Management expects Q3 2026 polysilicon output of 40,000–45,000 tons and full-year output of 160,000–180,000 tons.

• Industry policy changes and anti-dumping measures are expected to drive supply-side consolidation and price stabilization in late 2026.

• The company will continue to focus on cost control, technology innovation, and digital transformation.