Summary · why it matters
Photovoltaic polysilicon leader Daqo New Energy disclosed in its latest investor communication notes that the company's AIDC project is overall in the preliminary permit-processing stage. During the 2026 half-year report period, it initiated research and development projects around new energy storage equipment and solid-state transformers. Among them, the new energy storage equipment has completed some staged work such as prototype units, single-machine assembly, and hardware board debugging, while the solid-state transformer has completed the main topology design and hardware design. However, the company stressed that the project is still in an early stage. In the first half of this year, Daqo New Energy's net profit attributable to the parent company was negative 1.595 billion yuan, including inventory impairment losses of 1.026 billion yuan, with the loss widening 40.29 percent year on year, the largest increase among the four major polysilicon producers. Since the second quarter of 2024, it has lost more than 5 billion yuan in just two years. Nevertheless, as of the end of the first half of this year, the company's cash reserves, including monetary funds, trading financial assets, and time deposits and large-denomination certificates of deposit in other current assets, totaled 10.419 billion yuan, with an asset-liability ratio of only 7.9 percent. On the evening of June 3, Daqo New Energy announced that its subsidiary Daqo New Energy Technology Shanghai Company Limited signed an investment agreement with the Kunshan Economic and Technological Development Zone Management Committee, planning to establish a new independent legal entity in the Kunshan development zone to build the Daqo Smart Energy System Manufacturing Base project, with a total investment budget of about 6 billion yuan, to be constructed in two phases. The first phase has a total investment of about 2.1 billion yuan, and the second phase will be advanced at an appropriate time after the project meets relevant industrial policy conditions and investment conditions. The next morning, the company's share price hit the 20 percent daily limit. Daqo New Energy said that extending into the AIDC power distribution sector can effectively diversify operating risks and cultivate new profit growth points. Its Daqo brand has more than fifty years of technical accumulation in the electrical, new energy, and power electronics fields, holds nearly 3,000 valid patents, and has led or participated in the formulation of more than ninety industry standards. Looking ahead to the fourth quarter, Daqo New Energy said the polysilicon industry is still in a supply-demand rebalancing stage, and actual output changes are the core variable affecting industry fundamentals. The company will reasonably arrange its production and operating pace. When asked when the industry turning point will arrive, the company did not respond directly. According to statistics from the Silicon Industry Branch of the China Nonferrous Metals Industry Association, in the week ending September 30, the average transaction price of n-type re-feeding material was 43,000 yuan per ton, and the average transaction price of n-type granular silicon was 40,300 yuan per ton. The Silicon Industry Branch believes that in October, polysilicon producers will successively implement production reduction plans, and October output may decline by about 13 percent month on month.
Daqo New Energy Corp ADR
Xinjiang Daqo New Energy Co Ltd