Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Daqo Reports Heavy Losses in Q2 2025 Amid Industry Overcapacity and Price Declines

Daqo New Energy Corporation, a leading China-based polysilicon manufacturer, reported Q2 2025 revenue of $75.2 million, down 65.8% year-over-year, missing estimates by $65.35 million. The company’s net loss narrowed 36% YoY to $76.5 million, while EPS came in at a loss of $1.14, missing expectations by $0.44.

In the first half of 2025, revenue fell 68.6% YoY to $199 million, with net losses widening to $148 million. Despite producing 26,012 MT of polysilicon in Q2, Daqo struggled with declining selling prices, averaging $4.19/kg—below its cash cost of $5.12/kg. Overcapacity and high inventories across China’s solar sector drove margins lower, though production costs dropped 4% sequentially due to lower silicon and energy costs.

The company scaled back new orders towards the quarter’s end, anticipating recovery as Chinese authorities crack down on “irrational competition” through their anti-involution initiative. While China saw record solar additions of 93 GW in May, installations slowed to 14 GW in June. Looking forward, Daqo expects Q3 output of 27,000–30,000 MT and 110,000–130,000 MT for the full year, with plans to boost competitiveness via N-Type technology, cost optimization, and AI-driven efficiencies.