Xinjiang Daqo New Energy (688303) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RMB 907 million, down 69.6% year-over-year due to a sharp decline in polysilicon prices and industry oversupply.

• Net loss attributable to shareholders was RMB 558 million, compared to a net profit of RMB 331 million in Q1 2024.

• The company implemented production cuts, technical upgrades, and financial optimization to counter industry downturn.

Financial highlights

• Operating cash flow was negative RMB 810.7 million, with an adjusted figure (including bank acceptance bills) of negative RMB 376 million.

• Gross margin and profitability declined sharply; basic and diluted EPS both at -0.26 yuan, down from 0.15 and 0.16 yuan respectively year-over-year.

• R&D investment was RMB 41.2 million, down 69.9% year-over-year, with R&D-to-revenue ratio at 4.54%.

• Total assets at quarter-end were RMB 43.17 billion, down 2.3% from year-end 2024.

Outlook and guidance

• Full-year 2025 polysilicon production expected at 110,000–140,000 tons; Q2 output guidance is 25,000–28,000 tons.