Xinjiang Daqo New Energy Co., Ltd. researches, develops, produces, and sells polysilicon products in China and internationally. Its product range includes P-type single crystal composite feed, P-type single crystal dense materials, large and small P-type monocrystalline coral materials, N-type single crystal material, and P-type single crystal loose materials, as well as polycrystalline loose rods, dense rods, dense bulk materials, and loose block materials. Founded in 2011, the company is based in Shihezi, China, and is a subsidiary of Daqo New Energy Corp.
Polysilicon price floor pledge vs widening losses and US tariff risk
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Eight polysilicon makers pledge no below-cost sales Eight firms controlling over 90% of China's polysilicon capacity, including Daqo, signed a pledge to stop selling below cost. This could lift prices and help Daqo's thin margins, but enforcement is uncertain and downstream buyers still resist higher prices.
This is the main positive force behind the stock, directly aimed at supporting polysilicon prices.
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H1 2026 net loss of 1.595 billion yuan, Q2 loss widened Daqo reported a first-half net loss of 1.595 billion yuan, with revenue down 57.63% and the second-quarter loss widening from the first. This shows the company is still burning cash and under heavy financial pressure.
It is the clearest evidence of how badly the downturn is hurting Daqo's finances.
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Daqo raises output guidance and pivots to AI data centers Daqo raised its 2026 production target to 160,000–180,000 tons and plans to enter AI data center power gear by late 2026. Sales volume jumped in Q2, but average selling prices fell, so the pivot is a long-term bet, not an immediate fix.
It shows management's response to weak prices and a potential new growth area, but near-term pricing still hurts.
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US polysilicon price floor and tariffs threaten exports The US is preparing a price floor and tariffs on polysilicon to protect domestic producers, with Daqo cited as affected. This could limit its access to the US market and add another headwind on top of weak global prices.
It is a new external risk that could reduce Daqo's sales and pressure the stock.
Q3 2026
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Polysilicon price floor pledge vs widening losses and US tariff risk
▲
Eight polysilicon makers pledge no below-cost sales Eight firms controlling over 90% of China's polysilicon capacity, including Daqo, signed a pledge to stop selling below cost. This could lift prices and help Daqo's thin margins, but enforcement is uncertain and downstream buyers still resist higher prices.
This is the main positive force behind the stock, directly aimed at supporting polysilicon prices.
▼
H1 2026 net loss of 1.595 billion yuan, Q2 loss widened Daqo reported a first-half net loss of 1.595 billion yuan, with revenue down 57.63% and the second-quarter loss widening from the first. This shows the company is still burning cash and under heavy financial pressure.
It is the clearest evidence of how badly the downturn is hurting Daqo's finances.
◆
Daqo raises output guidance and pivots to AI data centers Daqo raised its 2026 production target to 160,000–180,000 tons and plans to enter AI data center power gear by late 2026. Sales volume jumped in Q2, but average selling prices fell, so the pivot is a long-term bet, not an immediate fix.
It shows management's response to weak prices and a potential new growth area, but near-term pricing still hurts.
▼
US polysilicon price floor and tariffs threaten exports The US is preparing a price floor and tariffs on polysilicon to protect domestic producers, with Daqo cited as affected. This could limit its access to the US market and add another headwind on top of weak global prices.
It is a new external risk that could reduce Daqo's sales and pressure the stock.
News & notes moving688303.CG
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688303.CG▼
Daqo New Energy Fair Value Cut 18% as JPMorgan and Goldman Split on Rating
Daqo New Energy's fair value estimate has been trimmed from about US$23.95 to about US$19.65, an adjustment of roughly 18%, as analysts remain sharply divided on the stock. JPMorgan maintains an Overweight rating with a revised US$22 price target, still above the updated fair value estimate, while Goldman Sachs shifted to a Sell rating with a reduced US$10 target, citing a Q2 non GAAP net loss driven by lower recognized average selling prices and higher SG&A expenses. The company issued new production guidance for the third quarter of 2026 targeting polysilicon output of about 40,000 MT to 45,000 MT, and for the full year 2026 guided to polysilicon production of about 160,000 MT to 180,000 MT, including the impact of annual facility maintenance. Daqo New Energy was also removed from the FTSE All World Index in US$ terms, and Reuters reported that the U.S. government is preparing a price floor and tariffs on polysilicon to support domestic factories, with Daqo New Energy cited among the companies expected to be affected. In the updated model, revenue growth was trimmed from about 32.87% to about 30.82%, net profit margin moved from about 1.77% to about 6.50%, the future P/E was cut from about 97.65x to about 23.46x, and the discount rate edged higher from about 12.27% to about 12.37%.
DQ · Capital · Neutral Fair value cut ~18% with JPMorgan Overweight ($22 target) vs Goldman Sell ($10 target) after Q2 non-GAAP net loss on lower ASPs and higher SG&A.
DQ · Tariff · Negative US government preparing a polysilicon price floor and tariffs, with Daqo cited among companies expected to be affected.
688303.CG · Capital · Neutral Parent Daqo New Energy's fair value cut and split analyst ratings (JPMorgan Overweight vs Goldman Sell) after a Q2 net loss.
688303.CG · Tariff · Negative US polysilicon price floor and tariffs cited as affecting Daqo New Energy, the parent of Xinjiang Daqo.
Top five PV module makers lost over 14.8 billion yuan in H1, with LONGi Green Energy posting the biggest loss increase
The main chain of the photovoltaic industry continued to bottom out across all segments, with the top five module makers posting combined losses of more than 14.8 billion yuan in the first half. LONGi Green Energy lost nearly 3.7 billion yuan, making it the biggest loss expander. According to a review by Times Finance, affected by market-oriented reform of renewable energy electricity prices, grid consumption constraints, and the high base from rush installations in the same period last year, China's new photovoltaic installations in the first half of 2026 reached 72.07 gigawatts, down 66 percent year on year. In modules, LONGi Green Energy, JinkoSolar, Trina Solar, JA Solar, and Tongwei Co., Ltd. posted combined revenue of 135.612 billion yuan, down 15.30 percent year on year. Combined net profit attributable to shareholders showed a loss of 14.812 billion yuan, while the loss after deducting non-recurring items widened to 18.588 billion yuan. In the upstream polysilicon segment, Tongwei Co., Ltd., GCL Technology, Xinte Energy, and Daqo New Energy remained in the red, with all except Xinte Energy seeing losses widen. In the inverter segment, most companies remained profitable but posted narrower profits year on year. The industry's anti-involution campaign escalated, as eight major polysilicon companies signed a proposal pledging not to sell below cost, but price transmission still faces pressure. Analysts noted that module prices would need to rise above 0.75 yuan per watt to cover the polysilicon price increase.
601012.CG · Capital · Negative LONGi Green Energy lost nearly 3.7 billion yuan, the biggest loss expander among the top five module makers.
002459.CS · Capital · Negative JA Solar is among the top five module makers that posted combined losses of over 14.8 billion yuan in H1.
1799.HK · Capital · Negative Xinte Energy is named among the upstream polysilicon makers that remained in the red in H1, though it was the exception not seeing losses widen.
600438.CG · Capital · Negative Tongwei is among the top five module makers posting combined losses of 14.8 billion yuan and is also named in the loss-making polysilicon segment.
688303.CG · Capital · Negative Daqo New Energy remained in the red in the upstream polysilicon segment, with its loss widening in H1.
688599.CG · Capital · Negative Trina Solar is among the top five module makers whose combined net loss reached 14.812 billion yuan in H1.
Daqo Cuts Losses While Betting on AI Power Infrastructure
Daqo New Energy reported second-quarter earnings on August 20, showing narrowed losses but continued sales below production cost, while management highlighted a new pivot toward AI power infrastructure and semiconductor-grade polysilicon. Revenue rose to $62.7 million from $26.7 million in the first quarter, gross loss narrowed to $82.7 million from $139.4 million, and net loss improved to $81.2 million from $88.4 million. The company holds zero debt and $1.92 billion in liquidity, which supports its patience through the downturn. Daqo joined seven other polysilicon manufacturers on August 6 in an initiative to stop below-cost sales, and a new national energy standard effective January 1, 2027, is expected to force noncompliant plants to shut down. On June 3, Daqo announced an investment agreement to build a manufacturing base for AIDC power infrastructure, including energy storage systems and solid-state transformers, and it is targeting a semiconductor-grade polysilicon market where it sees global demand of 75,000 tons against supply of 57,000 tons. However, the average selling price fell to $4.04 per kilogram from $5.96, while production cost stayed at $5.95 per kilogram, resulting in a negative 132% gross margin. Cash used in operating activities for the first half of 2026 reached $276.2 million, more than double the $105.4 million a year earlier. Management acknowledged that the qualification cycle for semiconductor-grade polysilicon is taking longer than expected, and the AIDC effort is still small, with only $30 million to $40 million earmarked for 2026.
688303.CG · Capital · Neutral Narrowed losses and strong liquidity are positive, but continued negative gross margin and cash burn offset.
688303.CG · Demand · Positive Pivot to AI power infrastructure and semiconductor-grade polysilicon targets growing demand.
DQ · Capital · Neutral Q2 losses narrowed and liquidity is strong, but sales remain below cost with negative 132% gross margin and rising cash burn.
DQ · Demand · Neutral New pivot to AIDC power infrastructure and semiconductor-grade polysilicon targets future demand, but qualification is slow and 2026 spend is only $30-40M.
POLYSILICON · Supply · Negative Industry initiative to stop below-cost sales and new standard may reduce supply, but current oversupply persists.
Daqo New Energy's 2026 interim report shows net loss of 1.595 billion yuan, widening year-on-year
Daqo New Energy released its 2026 interim report, with net profit attributable to the parent company at negative 1.595 billion yuan, a widening of 448 million yuan compared with the same period last year. The company's total operating revenue was 623 million yuan, down 57.63 percent year-on-year. Net cash outflow from operating activities was 2.243 billion yuan, an increase of 635 million yuan from the same period last year. The company's latest gross margin was negative 74.42 percent, up 46.34 percentage points from the previous quarter and down 40.37 percentage points from the same period last year. The latest return on equity was negative 4.27 percent, down 1.33 percentage points from the same period last year. Diluted earnings per share were negative 0.74 yuan, down 0.21 yuan from the same period last year.
DAQO New Energy Q2 Non-GAAP EPADS misses, revenue beats
DAQO New Energy reported second quarter 2026 financial results, with non-GAAP EPADS of negative $1.20 missing analyst expectations by $0.63. Revenue came in at $62.66 million, a 16.7% decline year-over-year, but beat estimates by $6.6 million. The company issued the results via press release.
Daqo New Energy Responds to Polysilicon Meeting and Price Hike Rumors: Unaware, Pricing Still Under Consideration
Daqo New Energy has responded to market rumors that polysilicon companies will hold a collective meeting tomorrow and that some manufacturers have raised their quotes, saying it is unaware of any meeting and that specific pricing is still under consideration. A reporter from Blue Whale News sought confirmation from Daqo New Energy, and the company said it is unaware of the situation. Another leading polysilicon company also said it had no knowledge. According to SMM, a domestic silicon material producer raised its quote from 37 to 38 yuan per kilogram to 40 yuan per kilogram. Daqo New Energy replied that its pricing references third-party agencies and the company is still evaluating. Previously, on August 6, eight polysilicon leaders including Tongwei Co., GCL Technology, and others signed an anti-involution initiative, pledging not to sell below industry costs. These companies together account for over 90 percent of effective domestic capacity. Analysts noted that the initiative is a form of industry self-discipline, and the extent of supply contraction and the turning point for silicon material prices still depend on subsequent quotes from leading companies and downstream acceptance.
Eight Leading Chinese Polysilicon Firms Jointly Sign Anti-Involution Pledge, Agree Not to Sell PV Products Below Cost
On the evening of August 6, eight major Chinese polysilicon companies jointly signed an anti-involution pledge in Shanghai, committing that all photovoltaic product sales prices shall not fall below the corresponding costs calculated according to group standards. The participating companies together account for over 90 percent of China's effective polysilicon production capacity, including four listed firms—Tongwei Co., GCL Technology, Daqo New Energy, and Xinte Energy—as well as Asia Silicon Qinghai Co., Xinjiang East Hope New Energy Co., Qinghai Lihao Clean Energy Co., and Xinjiang Goens Energy Technology Co. The companies made clear that sales below full cost must be immediately stopped and corrected, and they will voluntarily accept supervision and inspection by market regulatory authorities at all levels, while strengthening mutual oversight and promptly reporting any violations to industry associations and the State Administration for Market Regulation. In addition, the companies pledged to strictly implement new energy consumption standards and proactively phase out high-energy-consuming outdated capacity.
Daqo New Energy to Cancel 12.7629 Million Treasury Shares on August 3
Daqo New Energy announced that it will cancel 12.7629 million repurchased shares held in its special securities account for buybacks on August 3, 2026, representing 0.59% of the total share capital of 2.145 billion shares before the cancellation. Following the cancellation, the company's total share capital will decrease from 2.145 billion shares to 2.132 billion shares, with a corresponding reduction in registered capital. These shares originate from two buyback programs. The first phase, launched in August 2023, repurchased a cumulative 10.2935 million shares at a total cost of 315 million yuan. The second phase, launched in April 2025, repurchased a cumulative 2.4694 million shares at a total cost of 59.989 million yuan. The company previously passed resolutions at the board and shareholder meetings to change the purpose of these shares from employee stock ownership plans or equity incentives to cancellation and reduction of registered capital.
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