Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss when you expect the overcapacity in the polysilicon market to be resolved and which companies might exit the market? A: Anita Zhu, Deputy CEO, explained that the rebalancing of supply and demand will take longer than expected due to solid shareholder bases and financing options for many companies. The industry utilization rate is currently around 40% to 50%, and no companies have completely exited the market yet. However, as prices remain below cash costs, it will be challenging for some companies to sustain operations.
Q: How do you expect the industry utilization rate to trend throughout the year? A: Anita Zhu noted that the first quarter saw monthly domestic production of 90,000 to 100,000 metric tons, with a slow pace of inventory depletion. Prices are expected to remain stable due to policy support, but there are potential downside risks from policy changes and external tensions. The utilization rate is expected to remain below 50% for the rest of 2025.
Q: What is your expectation for demand in China after the policy cutoff date of May 31? A: Anita Zhu stated that Chinas demand for 2025 is expected to be strong, ranging from 250 to 300 gigawatts, equivalent to 1.4 to 1.6 million metric tons of polysilicon. Despite potential impacts from new policies, renewable energy is transitioning to a more market-driven model, supporting long-term demand.
Q: What is Daqo New Energy's strategy regarding the ADR delisting risk amid US-China tensions? A: Anita Zhu acknowledged investor concerns but considers the delisting risk to be low. The company previously considered a dual listing in Hong Kong but held off due to resolved issues with the PCAOB. While there are no immediate plans for a Hong Kong listing, the company is monitoring developments and remains committed to protecting shareholder interests.
Q: Can you provide an outlook on cash production costs for the upcoming quarters? A: Ming Yang, CFO, explained that cash costs increased by 5% to 6% due to maintenance and facility-related costs. The Inner Mongolia Phase 2 shutdown added approximately $0.20 per kilogram to costs. For the second quarter, cash costs are expected to be similar or slightly lower, depending on production levels.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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