Q3 2026 Daqo New Energy Corp Earnings Call

October 27, 2026

Operator: Good day, and welcome to the Daqo New Energy Q3 2026 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone phone. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Jessie Zhao, IR Director. Please go ahead.

Speaker #1: Good day, and welcome to the DAQO NEW ENERGY third quarter 2026 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1, on a touchtone phone.

Speaker #1: To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Jessie Zhao, IR Director.

Speaker #1: Please go ahead.

Jessie Zhao: Hello, everyone. I am Jessie Zhao, the Investor Relations Director of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the Q3 of 2026, which can be found on our website at www.dqsolar.com. Today, attending the conference call we have our Deputy CEO, Ms. Anita Xu, our CFO, Mr. Ming Yang, and myself. Our Chairman and CEO, Mr. Xiang Xu, is on a business trip now, so Ms. Anita Xu will deliver our management remarks on behalf of Mr. Xiang Xu. Today's call will begin with an update from Ms. Xu on market conditions and company operations, and Mr. Yang will discuss the company's financial performance for the quarter. After that, we will open the floor to Q&A from the audience.

Speaker #2: Hello everyone. I'm Jessie Zhao, the investor relations director of DAQO NEW ENERGY. Thank you for joining our conference call today. DAQO NEW ENERGY just issued its financial results for the third quarter of 2026, which can be found on our website at www.dqosolar.com.

Speaker #2: Today, attending the conference call, we have our Deputy CEO, Ms. Anita Zhu, our CFO, Mr. Ming Yang, and myself. Our Chairman and CEO, Mr. Xiang Xu, is on a business trip now, so Ms. Anita Zhu will deliver our management remarks on behalf of Mr. Xiang Xu.

Speaker #2: Today's call will begin with an update from Ms. Zhu on market conditions and company operations, and then Mr. Yang will discuss the company's financial performance for the quarter.

Speaker #2: After that, we will open the floor to Q&A from the audience. Before we begin, the formal remarks: I would like to remind you that certain statements on today's call include expected future operational and financial performance, and industry growth are forward-looking statements that are made under the Safe Harbor Provisions of the U.S.

Jessie Zhao: Before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth, are forward-looking statements that are made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. Further information regarding this and other risks is included in the reports or documents we have filed with or furnished to the Securities and Exchange Commission. These statements only reflect our current and preliminary view as of today, and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties.

Speaker #2: Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties under a number of factors could cause actual results to differ materially from those contained in any forward-looking statement.

Speaker #2: Further information regarding these and other risks is included in the report or document we are filed with or submitted to the Securities and Exchange Commission.

Speaker #2: These statements are only reflect our current and preliminary view as of today, and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties.

Jessie Zhao: All information provided in today's call is as of today, and we undertake no duty to update such information except as required under applicable law. Also, during the call, we will occasionally reference monetary amounts in US dollar terms. Please keep in mind that our functional currency is the Chinese RMB. We offer these translations into US dollars solely for the convenience of the audience. Now, I will turn the call to our Deputy CEO, Ms. Anita Xu. Ms. Xu, please go ahead.

Speaker #2: All information provided in today's call is as of today, and we undertake no duty to act as such information except as required under applicable law.

Speaker #2: Also, during the call, we will occasionally read reference monetary amounts in U.S. dollar terms. Please keep in mind that our functional currency is the Chinese RMB.

Speaker #2: We offer this translation into U.S. dollars solely for the convenience of the audience. Now, I will turn the call to our Deputy CEO, Ms. Anita Zhu.

Speaker #2: Ms. Zhu, please go ahead.

Anita Xu: Thank you. Hello, everyone. This is Anita, and I'll now deliver our management report marks on behalf of our CEO, Mr. Xiang Xu. Supported by continued anti-involution policies, including price enforcement, the polysilicon sector bottomed out and rebounded in Q3, with polysilicon prices gradually recovering towards cost levels. However, downstream players continued to hold polysilicon inventories and largely limited their purchases to immediate operational needs, keeping overall sector trading volumes low. Against this backdrop, we delivered a substantial increase in Q3 shipment volumes, driving strong sequential revenue growth and narrowing losses. Our financial position remains sound, with a robust balance sheet and zero debt throughout the period. As of 30 September 2026, we held cash equivalents, and restricted cash of $546.5 million. Short-term investments of $267.3 million, bank notes receivable of $161.5 million, held-to-maturity investment of $61.6 million, and a fixed-term bank deposit balance of $1 billion.

Anita Zhu: Thank you. Hello, everyone. This is Anita, and I'll now deliver our management report marks on behalf of our CEO, Mr. Xiang Xu. Supported by continued anti-involution policies, including price enforcement, the polysilicon sector bottomed out and rebounded in Q3, with polysilicon prices gradually recovering towards cost levels. However, downstream players continued to hold polysilicon inventories and largely limited their purchases to immediate operational needs, keeping overall sector trading volumes low. Against this backdrop, we delivered a substantial increase in Q3 shipment volumes, driving strong sequential revenue growth and narrowing losses. Our financial position remains sound, with a robust balance sheet and zero debt throughout the period. As of 30 September 2026, we held cash equivalents, and restricted cash of $546.5 million. Short-term investments of $267.3 million, bank notes receivable of $161.5 million, held-to-maturity investment of $61.6 million, and a fixed-term bank deposit balance of $1 billion.

Speaker #3: Thank you. Hello everyone. This is Anita, and I'll now deliver our management report marks on behalf of our CEO, Mr. Zhu. Supported by continued anti-involution policies including price enforcement, the polysilicon sector bottomed out, and rebounded in Q3.

Speaker #3: With polysilicon prices gradually recovering toward cost levels, however, downstream players continue to hold polysilicon inventories, and largely limited their purchases to immediate operational needs.

Speaker #3: Keeping overall sector trading volumes low, against this backdrop, we delivered a substantial increase in Q3 shipment volumes, driving strong sequential revenue growth and narrowing losses.

Speaker #3: Our financial position remains sound, with a robust balance sheet and zero debt throughout the period. As of September 30, 2026, we held cash cash equivalents and restricted cash, a 546.5 million U.S.

Speaker #3: dollars. Short-term investments of 267.3 U.S. million U.S. dollars bank notes receivable of 161.5 million U.S. dollars held to maturity investment of 61.6 million, and a fixed-term bank deposit balance of 1 billion U.S.

Speaker #3: dollars. Together, these readily convertible assets total 2.06 billion USD, up to 1.92 billion at the end of Q2. Providing a strong financial foundation and strategic flexibility to navigate the current market environment.

Anita Xu: Together, these readily convertible assets total $2.06 billion, up to $1.92 billion at the end of Q2, providing a strong financial foundation and strategic flexibility to navigate the current market environment. Operationally, our nameplate capacity utilization rate was approximately 70% during the period. Total production volume at our two polysilicon facilities was 53,469 metric tons, exceeding our guidance range of 50,000 to 55,000 metric tons. Sales volume rose sharply from 15,190 metric tons in Q2 to 46,910 metric tons in Q3, following our shift in June from a wait-and-see stance to a more market-oriented sales and pricing strategy. We believe this increase also reflects greater customer confidence in our product quality and continued preference for our products. Our average selling price increased by 2% sequentially to $4.12 per kilogram. Although the increase lagged the broader market recovery because Q3 shipments fulfilled orders signed before late July.

Anita Zhu: Together, these readily convertible assets total $2.06 billion, up to $1.92 billion at the end of Q2, providing a strong financial foundation and strategic flexibility to navigate the current market environment. Operationally, our nameplate capacity utilization rate was approximately 70% during the period. Total production volume at our two polysilicon facilities was 53,469 metric tons, exceeding our guidance range of 50,000 to 55,000 metric tons. Sales volume rose sharply from 15,190 metric tons in Q2 to 46,910 metric tons in Q3, following our shift in June from a wait-and-see stance to a more market-oriented sales and pricing strategy. We believe this increase also reflects greater customer confidence in our product quality and continued preference for our products. Our average selling price increased by 2% sequentially to $4.12 per kilogram. Although the increase lagged the broader market recovery because Q3 shipments fulfilled orders signed before late July.

Speaker #3: Operationally, our nameplate capacity utilization rate was approximately 70% during the period. Total production volume at our two polysilicon facilities was 53,469 metric tons. Exceeding our guidance range of 50,000 to 55,000 metric tons.

Speaker #3: Sales volume rose sharply from 15,000 and 190 metric tons in Q2 to 46,000 and 910 metric tons in Q3. Following our shift in June from a wait-and-see stance to a more market-oriented sales and pricing strategy.

Speaker #3: We believe this increase also reflects greater customer confidence in our product quality and continued preference for products. Our average selling price increased by 2% sequentially to 4.12 U.S.

Speaker #3: dollars per kilogram, although the increase lagged the broader market recovery because Q3 shipments fulfilled orders signed before late July. On the cost side, average total production cost and average cash cost fell by 9.7% and 7.4% sequentially, respectively, reaching new record lows of 5.37 U.S.

Anita Xu: On the cost side, average total production cost and average cash cost fell by 9.7% and 7.4% sequentially, respectively, reaching new record lows of $5.37 per kilogram and $4.23 per kilogram, respectively, reflecting our continued improvement in manufacturing efficiency and cost control. In light of the current market dynamics, we expect total polysilicon production volume in Q4 of 2026 to be approximately 35,000 metric tons to 45,000 metric tons. For the full year of 2026, we expect production volume to be in the range of 175,000 metric tons to 185,000 metric tons. Anti-involution efforts across the solar PV sector continued during Q3. The State Administration for Market Regulation released price compliance guidance targeting the solar PV sector on 31 July, following August by industry initiative against below-cost sales that we co-signed.

Anita Zhu: On the cost side, average total production cost and average cash cost fell by 9.7% and 7.4% sequentially, respectively, reaching new record lows of $5.37 per kilogram and $4.23 per kilogram, respectively, reflecting our continued improvement in manufacturing efficiency and cost control. In light of the current market dynamics, we expect total polysilicon production volume in Q4 of 2026 to be approximately 35,000 metric tons to 45,000 metric tons. For the full year of 2026, we expect production volume to be in the range of 175,000 metric tons to 185,000 metric tons. Anti-involution efforts across the solar PV sector continued during Q3. The State Administration for Market Regulation released price compliance guidance targeting the solar PV sector on 31 July, following August by industry initiative against below-cost sales that we co-signed.

Speaker #3: dollars per kilogram and 4.23 U.S. dollars per kilogram, respectively, reflecting our continued improvements in manufacturing efficiency and cost control. In light of the current market dynamics, we expect total polysilicon production volume in Q4 of 2026 to be approximately 35,000 metric tons to 45,000 metric tons.

Speaker #3: For the full year of 2026, we expect production volume to be in the range of 175,000 metric tons to 185,000 metric tons. Anti-involution efforts across the solar PV sector continue during Q3.

Speaker #3: The state administration for market regulation released price compliance guidance targeting the solar PV sector on July 31. Following August, by industry initiative against low-cost sales, that we co-signed.

Anita Xu: Against this backdrop, polysilicon manufacturers halted below-cost sales and anti-involution polysilicon prices rebounded from a trough of CNY 30.5 to 33 per kilogram in Q2 to approximately CNY 40 to 43 per kilogram by the end of Q3. On 3 September, the National Development and Reform Commission and the SAMR jointly issued the notice on matters concerning cost accounting for low price disorder competition in key industrial products, establishing a firmer regulatory basis for polysilicon pricing. Despite these policy tailwinds, elevated industry inventories and weak near-term demand continued to make the operating environment challenging. In response, we are taking a disciplined approach and evaluating and reducing our near-term utilization rate to better align our production with market demand and support the orderly de-stocking of polysilicon inventories. This approach is consistent with our commitment to the long-term healthy development of the solar industry.

Anita Zhu: Against this backdrop, polysilicon manufacturers halted below-cost sales and anti-involution polysilicon prices rebounded from a trough of CNY 30.5 to 33 per kilogram in Q2 to approximately CNY 40 to 43 per kilogram by the end of Q3. On 3 September, the National Development and Reform Commission and the SAMR jointly issued the notice on matters concerning cost accounting for low price disorder competition in key industrial products, establishing a firmer regulatory basis for polysilicon pricing. Despite these policy tailwinds, elevated industry inventories and weak near-term demand continued to make the operating environment challenging. In response, we are taking a disciplined approach and evaluating and reducing our near-term utilization rate to better align our production with market demand and support the orderly de-stocking of polysilicon inventories. This approach is consistent with our commitment to the long-term healthy development of the solar industry.

Speaker #3: Against this backdrop, polysilicon manufacturers halted the low-cost sales and anti-polisilicon prices rebounded from a trough of RMB 30.5 to 33 per kilogram in Q2 to approximately RMB 40 to 43 per kilogram by the end of Q3.

Speaker #3: On September 3, the National Development and Reform Commission and the SAMR jointly issued the notice on matters concerning cost accounting for low-price disorder competition in key industrial products, establishing a firmer regulatory basis for polysilicon pricing.

Speaker #3: Despite these policy tailwinds, elevated industry inventories and weak near-term demand continue to make the operating environment challenging. In response, we're taking a disciplined approach and evaluating a reduction in our near-term utilization rate to better align our production with market demand and support the orderly destocking of polysilicon inventories.

Speaker #3: This approach is consistent with our commitment to the long-term healthy development of the solar industry. We are also diversifying beyond our core polysilicon business to reduce our exposure to solar PV cyclicality by targeting the fast-growing AI data center power infrastructure market.

Anita Xu: We are also diversifying beyond our core polysilicon business to reduce our exposure to solar PV cyclicality by targeting the fast-growing AI data center power infrastructure market. On 3 June 2026, we announced an investment agreement to establish a manufacturing base for the R&D, manufacturing, and sale of next-generation energy solutions and related equipment for AIDC, including energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the AIDC industry transition to a high voltage direct current architecture, such as the 800V DC standard advanced by NVIDIA and other leading AI infrastructure providers. The platform is anchored by Daqo Group, an affiliated entity under common beneficial ownership with DAQO New Energy Corp, which brings over 40 years of power equipment manufacturing expertise, established technology, experienced talent, and deep customer relationships to help accelerate our entry into the segment.

Anita Zhu: We are also diversifying beyond our core polysilicon business to reduce our exposure to solar PV cyclicality by targeting the fast-growing AI data center power infrastructure market. On 3 June 2026, we announced an investment agreement to establish a manufacturing base for the R&D, manufacturing, and sale of next-generation energy solutions and related equipment for AIDC, including energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the AIDC industry transition to a high voltage direct current architecture, such as the 800V DC standard advanced by NVIDIA and other leading AI infrastructure providers. The platform is anchored by Daqo Group, an affiliated entity under common beneficial ownership with DAQO New Energy Corp, which brings over 40 years of power equipment manufacturing expertise, established technology, experienced talent, and deep customer relationships to help accelerate our entry into the segment.

Speaker #3: On June 3, 2026, we announced investment agreement to establish a manufacturing base for the R&D, manufacturing, and sale of next-generation energy solutions and related equipment for AIDCs.

Speaker #3: Including energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the AIDC industry transition to high-voltage direct current architecture such as 800-voltage DC standard advanced by NVIDIA and other leading AI infrastructure providers.

Speaker #3: The platform is anchored by DAQO Group and affiliated entity under common beneficial ownership with DAQO NEW ENERGY CORP, which brings over 40 years of power equipment manufacturing expertise.

Speaker #3: Established technology, experienced talent, and deep customer relationships to help accelerate our entry into the segment. We view AIDC power infrastructure as a structural growth opportunity that complements our core business and has the potential to broaden our earnings base.

Anita Xu: We view AIDC power infrastructure as a structural growth opportunity that complements our core business and has the potential to broaden our earning base. Drawing on our track record of navigating multiple polysilicon cycles, we intend to pursue this expansion in a disciplined manner while preserving our balance sheet strength. Despite the challenging market environment, the solar PV industry retains compelling long-term growth prospects. Growing vulnerabilities in global energy markets have heightened concerns about national energy security, underscoring the important role that solar PV and other renewable energy sources can play. As one of the world's lowest cost producers of high-quality N-type polysilicon, supported by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated broader market recovery and long-term growth opportunities.

Anita Zhu: We view AIDC power infrastructure as a structural growth opportunity that complements our core business and has the potential to broaden our earning base. Drawing on our track record of navigating multiple polysilicon cycles, we intend to pursue this expansion in a disciplined manner while preserving our balance sheet strength. Despite the challenging market environment, the solar PV industry retains compelling long-term growth prospects. Growing vulnerabilities in global energy markets have heightened concerns about national energy security, underscoring the important role that solar PV and other renewable energy sources can play. As one of the world's lowest cost producers of high-quality N-type polysilicon, supported by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated broader market recovery and long-term growth opportunities.

Speaker #3: Drawing on our track record of navigating multiple polysilicon cycles, we intend to pursue this expansion in a disciplined manner while preserving a balance sheet strength.

Speaker #3: Despite the challenging market environment, the solar PV industry retains compelling long-term growth prospects. Growing vulnerabilities in global energy markets have heightened concerns about national energy security.

Speaker #3: Underscoring the important role that solar PV and other renewable energy sources can play. As one of the world's lowest cost producers of high-quality anti-polisilicon supported by a robust balance sheet and zero debt, we remain optimistic about the sector and our well-positioned to capitalize on the anticipated broader market recovery and long-term growth opportunities.

Anita Xu: We will continue to sharpen our competitive edge by advancing high-end efficiency N-type technologies and using digital transformation and AI adoption to optimize costs. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in that transition. Now I will turn the call to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead.

Anita Zhu: We will continue to sharpen our competitive edge by advancing high-end efficiency N-type technologies and using digital transformation and AI adoption to optimize costs. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in that transition. Now I will turn the call to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead.

Speaker #3: We will continue to sharpen our competitive edge by advancing high-end efficiency N-type technologies and using digital transformation and AI adoption to optimize costs. As the world accelerates its transition to clean energy, we're confident in our ability to play a leading role in that transition.

Speaker #3: And now I'll turn the call to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead.

Ming Yang: Thank you, Anita, and hello, everyone. This is Ming Yang, CFO of DAQO New Energy. We appreciate you joining our earnings conference call today. I will now go over the company's Q3 2026 financial performance. Revenues were $194.2 million compared to $62.7 million in Q2 2026 and to $44.6 million in Q3 2025. The sequential increase was primarily driven by higher sales volume as the company resumed normal sales activities in June following its adoption of a more market-oriented sales and pricing strategy. Gross loss was $60.6 million compared to a gross loss of $83.7 million in Q2 2026 and a gross profit of $9.7 million in Q3 2025. Gross margin was -31% compared to -132% in Q2 2026 and a positive 4% in Q3 2025.

Speaker #2: Thank you, Anita, and hello everyone. This is Ming Yang, CFO of DAQO NEW ENERGY. We appreciate you joining our earnings conference call today. I will now go over the company's third-quarter 2026 financial performance.

Speaker #2: Revenues were 194.2 million, compared to 62.7 million in the second quarter of 2026 and 244.6 million in the third quarter of 2025. The sequential inquiries was primarily driven by higher sales volume as activities in June following its adoption of a more market-oriented sales and pricing strategy.

Speaker #2: Gross loss was 60.6 million, compared to a gross loss of 82.7 million in the second quarter of 2026, and a gross profit of 9.7 million in the third quarter of 2025.

Speaker #2: Gross margin was negative 31%, compared to negative 132% in the second quarter of 2026, and a positive 4% in the third quarter of 2025.

Ming Yang: The sequential improvement in gross margin reflected higher selling prices, lower production costs, and lower inventory impairment provisions. Inventory impairment provisions totaled $30.9 million in Q3 2026, down from $65.7 million in Q2 2026. Selling, general, and administrative expenses were $16.3 million compared to $15.8 million in Q2 2026 and $32 million in Q3 2025. The sequential increase was primarily attributable to higher sales volume. A Y-o-Y decrease was primarily because the company recognized $18.6 million in non-cash share-based compensation related to share incentive plan in Q3 2025, while it did not have the same item in the same period of 2026. R&D expenses were $2.7 million compared to $1.6 million in Q2 2026 and $0.6 million in Q3 2025.

Speaker #2: The sequential improvement in gross margin reflected higher selling prices, lower production costs, and lower inventory impairment provisions. Inventory impairment provisions totaled 30.9 million in the third quarter of 2026, down from 55.7 million in the second quarter of 2026.

Speaker #2: Selling general administrative expenses were 16.3 million, compared to 15.8 million in the second quarter of 2026 and 32 million in the third quarter of 2025.

Speaker #2: The sequential increase was primarily attributable to higher sales volume. The year-over-year decrease was primarily because the company recognized 18.6 million in non-cash share-based compensation related to its share incentive plan in the third quarter of 2025, while it did not have the same item in the same period of 2026.

Speaker #2: were 2.7 million, compared to 1.6 million in the R&D expenses second quarter of 2026 and 0.6 million in the third quarter of 2025. The increase in R&D expenses was primarily due to R&D of next-generation energy solutions for AIDCs.

Ming Yang: The increase in R&D expenses was primarily due to R&D of next-generation energy solutions for AIDC. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. As a result of the foregoing, loss from operations was $78.6 million compared to $98.1 million in Q2 2026 and $20.3 million in Q3 2025. Operating margin was -40.5% compared to -156% in Q2 2026 and -8% in Q3 2025. As a result of the foregoing, net loss attributable to DAQO New Energy Corp. shareholders was $52.9 million compared to $81.2 million in Q2 2026 and $14.9 million in Q3 2025. Loss per basic ADS was $0.78 compared to $1.20 in Q2 2026 and $0.22 in Q3 2025.

Speaker #2: R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. As a result of the foregoing loss from operations was 78.6 million, compared to 98.1 million in the second quarter of 2026 and 20.3 million in the third quarter of 2025.

Speaker #2: Operating margin was negative 40.5%, compared to negative 156% in the second quarter of 2026 and negative 8% in the third quarter of 2025. And as a result of the foregoing, net loss attributable to DAQO NEW ENERGY CORP shareholders was 52.9 million, compared to 81.2 million in the second quarter of 2026 and 14.9 million in the third quarter of 2025.

Speaker #2: Loss per basic ADS was 78 cents, compared to $1.20 in the second quarter of 2026 and 22 cents in the third quarter of 2025.

Ming Yang: Adjusted net loss attributable to DAQO New Energy shareholders, excluding non-cash share-based compensation cost, was $52.9 million compared to adjusted net loss of $81.2 million in Q2 2026 and adjusted net profit of $3.7 million in Q3 2025. Adjusted loss per basic ADS was $0.78 compared to adjusted loss per basic ADS of $1.20 in Q2 2026 and adjusted earnings per basic ADS of $0.05 in Q3 2025. EBITDA was -$9.2 million compared to -$29 million in Q2 2026 and $45.8 million in Q3 2025. EBITDA margin was -0.7% compared to -46.8% in Q2 2026 and 18.7% in Q3 2025. Now on the company's financial condition.

Speaker #2: Adjusted net shareholders excluding non-cash 52.9 million, compared to adjusted net loss of 81.2 million in the second quarter of 2026 and adjusted net profit of 3.7 million in the third quarter of 2025.

Speaker #2: Adjusted base loss per basic ADS was 78 cents, compared to adjusted loss per basic ADS of $1.20 in the second quarter of 2026. And adjusted earnings per basic ADS of 5 cents in the third quarter of 2025.

Speaker #2: EBITDA was negative 9.2 million, compared to negative 29 million in the second quarter of 2026 and 45.8 million in the third quarter of 2025.

Speaker #2: EBITDA margin was negative 4.7%, compared to negative 46.8% in the second quarter of 2026 and 18.7% in the third quarter of 2025. Now on the company's financial condition.

Ming Yang: As of 30 September 2026, the company had $546.5 million in cash and cash equivalents, compared to $555 million as of 30 June 2026. Short-term investments were $267 million compared to $250 million as of 30 June 2026. Note receivable balance representing bank notes maturing within six months, were $161.5 million compared to $71.7 million as of 30 June 2026. Held-to-maturity investments were $51.6 million, compared to $51 million as of 30 June 2026. Fixed-term deposits due within one year was $965 million compared to $928.9 million as of 30 June 2026. Now on the company's cash flows. For the nine months ended 30 September 2026, net cash used in operating activities was $215 million, compared to $50 million in the same period of 2025.

Speaker #2: As of September 30, 2026, the company had 546.5 million in cash and cash equivalents, compared to 555 million as of June 30, 2026. Short-term investments were 267 million, compared to 250 million as of June 30, 2026.

Speaker #2: No receivable balance representing bank notes maturing within 6 months was 161.5 million, compared to 71.7 million as of June 30, 2026. How to maturity investments were 51.6 million, compared to 51 million as of June 30, 2026.

Speaker #2: Fixed-term deposits due within 1 year was 965 million, compared to 928.9 million as of June 30, 2026. Now on the company's cash flows. For the 9 months ending September 30, 2026, net cash using operating activities was 215 million, compared to 50 million dollars in the same period of 2025.

Ming Yang: For the nine months ended 30 September 2026, net cash used in investing activities was $235 million, compared to $449 million in the same period of 2025. Net cash used in investing activities in 2026 was primarily attributable to the purchase of short-term investments, fixed-term assets, fixed deposits, net of redemption as of both purchase of PP&E. Purchase of property, plant and equipment and land use rights totaled $93.5 million for the first nine months of the year. For the nine months ended 30 September 2026, net cash used in financing activities was $7.8 million, compared to $32,000 in the same period of 2025. The net cash used in financing activities in 2026 was primarily related to $7.7 million share repurchases made by the company's subsidiary, Xinjiang DAQO, from its minority shareholders on the A-share. That concludes our prepared remarks.

Speaker #2: And for the 9 months ending September 30, 2026, net cash using investing activities was 235 million, compared to 440.9 million in the same period of 2025.

Speaker #2: Net cash using investing activities in 2026 was primarily attributable to the purchase of short-term investments, fixed-term assets, fixed deposits, net of redemption as well as purchase of PP&E.

Speaker #2: Purchase of property, plan, equipment, and land use rights totaled 93.5 million for the first 9 months of the year. And for the 9 months ending September 30, 2026, net cash using financing activities was 7.8 million, compared to 32,000 in the same period of 2025.

Speaker #2: The net cash using financing activities in 2026 was primarily related to 7.8 million in share repurchases, made by the company's subsidiary, Xinjiang DAQO, from its minority shareholders on the A-share.

Speaker #2: And that concludes our prepared remarks. We will now take questions from the audience. Operator, please begin.

Ming Yang: We will now take questions from the audience. Operator, please begin.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Alan Hon with JP Morgan. Please go ahead.

Speaker #1: Thank you. We will now begin the question and answer session. Do ask a question, you may press star, then 1 on your touchtone phone.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, then 2.

Speaker #1: At this time, we will pause momentarily to assemble our roster. The first question today comes from Alan Hahn with JP Morgan. Please go ahead.

Alan Hon: Thank you, management, for taking my questions. My first question is related to our sales strategy during Q3, because we have read that the spot price has increased since August. During the first two quarters, we have been not willing to sell at a very low cost to reserve cashes and hoping the market to recover. But majority of our sale is transacted at lower than the average spot price in Q4. You did explain a little bit about securing some sales probably in July timeframe, signing contract. Just want to get a little bit more clarity on how should we look out for the Q4 sales ASP. Is it going to be closer to the current spot market prices, or is it still going through some of the contracts signed in July, which is transacted at $4 per kilogram?

Speaker #3: thank you, management, for taking my questions. My first question is related to, our sales strategy during the first quarter. Because we have read that the spot price has increased since August, and during the first two quarters we have been, like, not willing to sell at a very low cost to kind of, like, reserve cashes and hoping the market to recover.

Speaker #3: But, I mean, but majority of our sales is transacted at a lower than the average spot price in first quarter. You did explain a little bit on, about, like, securing some sales in probably in July time frame, signing contract.

Speaker #3: Just want to get a little bit more clarity on how should we look out for the fourth quarter sales, ASP. Is it going to be closer to, the current spot market prices, or is it still, going through some of the contract signed in July which is transacted, like, at $4 per kilogram?

Anita Xu: Thank you. Thank you, Alan, for your question. I think before we shed some light on our sales strategy and the ASPs going forward into Q4, I would like to give a little bit more background on the recent development of the anti-involution. Because recently, there have been conversations happening on a more frequent basis, and we see a strengthened tone on the pricing law, which players are not allowed to sell below cost. This previously was really under the debate of whether that means cash cost, production cost, or full cost, and we think that is leaning more towards the full cost level. To give a reference for us, our Q3, the all-in cost, including depreciation and the VAT is around RMB43 per kilogram. I would say that would serve as a benchmark for our strategy.

Anita Zhu: Thank you. Thank you, Alan, for your question. I think before we shed some light on our sales strategy and the ASPs going forward into Q4, I would like to give a little bit more background on the recent development of the anti-involution. Because recently, there have been conversations happening on a more frequent basis, and we see a strengthened tone on the pricing law, which players are not allowed to sell below cost. This previously was really under the debate of whether that means cash cost, production cost, or full cost, and we think that is leaning more towards the full cost level. To give a reference for us, our Q3, the all-in cost, including depreciation and the VAT is around RMB43 per kilogram. I would say that would serve as a benchmark for our strategy.

Speaker #4: Thank you. Thank you, Alan, for your question. So I think before we shed some light on our, sales strategy and the ASP is going forward into the fourth quarter, I would like to give a little bit more background on the recent development of the NG Involution.

Speaker #4: because recently, there have been conversations happening on a more frequent basis, and we see a, strengthened tone on the pricing law, which players are not allowed to sell below cost.

Speaker #4: And just previously was, really under the debate of whether that means, like, cash cost, production cost, or full cost. And we think that's leaning more towards the full cost level.

Speaker #4: And to give, a, a reference for us, our Q3, the, the earning cost, including depreciation and the VAT, is around, 43 RMB per kilogram.

Speaker #4: So I would say that would serve as a benchmark for our strategy. however, that being recognized, because recently, the, the inventory, the industry-level inventory is really accumulating, to a relatively high level, to around 700,000 metric tons overall, with half at the manufacturer's, of the polysilicon level and half at the wafer downstream customer level.

Anita Xu: However, that being recognized, because recently the industry level inventory is really accumulating to a relatively high level, to around 700,000 metric tons overall, with half at the manufacturers of the polysilicon level and half at the wafer downstream customer level. I would say we recognize the market dynamics, and the goal is to really have our sales at the benchmark level, but I think that is going to undergo a more gradual process. Like how in Q2 we have ramped up to above 30, 31, and then now to around 35 average.

Anita Zhu: However, that being recognized, because recently the industry level inventory is really accumulating to a relatively high level, to around 700,000 metric tons overall, with half at the manufacturers of the polysilicon level and half at the wafer downstream customer level. I would say we recognize the market dynamics, and the goal is to really have our sales at the benchmark level, but I think that is going to undergo a more gradual process. Like how in Q2 we have ramped up to above 30, 31, and then now to around 35 average.

Speaker #4: So I would say we recognize the market dynamics, and, the goal is to really have our sales at the benchmark level, but I think that's going to undergo a more, gradual process.

Speaker #4: Like, how in Q2 we have ramped up to above 30, 31, and then, now to around 35, average.

Alan Hon: Got it. In that sense, I think this is probably a situation across the industry, which would also mean, overall, the industry is still trying to figure out how to fully follow the guideline, I would imagine.

Speaker #3: got it. So in that sense, I think the probably our situation across the industry, which would also mean, overall, the industry is not, or still trying to figure out how to fully follow the guideline.

Speaker #3: I, I, I, I would imagine.

Anita Xu: Yes, because the conversations are still ongoing, so it is not sure from our perspective on the exact level of enforcement. What we can say from our company's perspective is that we 100% engage and promote the healthy and sustainable long-term development of the industry, which you can see from our overall sales volume in the first 2 quarters as we took a wait-and-see stance for clearer signal from the regulators and from the policy perspective. We were reluctant to be the first ones to sell at below cost prices. So we are still actively participating in these anti-involution initiatives. But given the industry dynamics, we also have to assess our own strategies in this situation.

Anita Zhu: Yes, because the conversations are still ongoing, so it is not sure from our perspective on the exact level of enforcement. What we can say from our company's perspective is that we 100% engage and promote the healthy and sustainable long-term development of the industry, which you can see from our overall sales volume in the first 2 quarters as we took a wait-and-see stance for clearer signal from the regulators and from the policy perspective. We were reluctant to be the first ones to sell at below cost prices. So we are still actively participating in these anti-involution initiatives. But given the industry dynamics, we also have to assess our own strategies in this situation.

Speaker #4: yes, because the conversations are still ongoing, and, so it's not sure from our perspective, the exact level of enforcement. What we can say from our company's perspective is that we 100% engage and promote the, the, the healthy and, sustainable long-term development of the industry, which you can see from our overall sales volume in the first two quarters as, as we took a weight and see stance for clearer signals from the regulators and from the policy perspective.

Speaker #4: And we're reluctant to be the first ones to sell at below cost prices. So we're still, actively participating in these, NG Involution initiatives. But, yeah, but given the industry dynamics, we also have to assess the, our own strategies in, in this, situation.

Alan Hon: Got it. I guess my second question would be, how do we think about our strategy in ramping up or increasing the production in Q3, maybe? Because it sounds like the situation is not very clear, and maybe maintaining a lower production volume would be a safer bet. I just want to get your thoughts on why we are increasing the production in Q1.

Speaker #3: Got it. I guess, my second question would be, how do we think about, our strategy in ramping up or increasing the production in first quarter, maybe?

Speaker #3: because, I mean, it sounds like the situation is not very clear. And maybe maintaining a lower production volume would be a safer bet to I just want to get your thoughts on, like, why we are, like, increasing production in first quarter.

Ming Yang: Okay. I think the actual production for the Q4 is actually fairly fluid. So there is two approach that we are taking. I think if you look at what we have done is, right now we are producing, say, roughly 15,000 metric tons per month. But the current manufacturing, I would say the process and the actual production, for example, I think in terms of quality and cost, is actually fairly optimal. I think you can see in the Q3, we actually achieved fairly significant cost reduction while quality improved. So, to the extent that we can maintain the current stable process, we would like to do that. But we also recognize that there is this industry initiative or proposal of reducing the entire industry's utilization further to maybe, say, 35% or so across the industry.

Speaker #4: O-okay. I, I think the actual production for the fourth quarter is actually fairly fluid. So, so there is, two approaches, that we're taking. I, I think if you look at, what we have done, is, right now, we're producing, say, roughly 15,000 metric tons per month.

Speaker #4: but the current manufacturing, I would say the process and, the, the actual, production for example, I think in terms of quality, and, and cost, is actually fairly optimal.

Speaker #4: I think you can see on, in the third quarter, we actually achieved fairly significant cost reduction while, while quality improved. So, to the extent that we can maintain the, the current stable process, we would like to do that.

Speaker #4: But we also recognize that there is this industry initiative or proposal of reducing the entire industry's utilization further to maybe, say, 35%. Also, our process industry, so we're also observing and looking at how our industry peers is working on that.

Ming Yang: So we are also observing and looking at how our industry peers is working on that. So to the extent that if the industry peers can come to the actual action of jointly reducing utilization, certainly we would welcome that, and we would follow as well. So I think that is why we have a fairly wide range with regard to our Q4 production level.

Speaker #4: So, to the extent that if the industry peers, can come to, the actual action of, of, jointly reducing utilization and certainly we would welcome that, and we would, follow as well.

Speaker #4: So, I think that's why we have a fairly wide range with regard to our Q4 production level.

Alan Hon: Got it. I guess my last question would be about the policy outlook. I understand we are now in a potential turning point where regulation intervention is happening but is taking time to sort out among players. So I would like to hear your thoughts on when do you think we will get to a point where industry at large will be selling at the designated level, like the all-in cost level?

Speaker #3: Got it. Got it. I guess, my last question would be, like, about the policy outlook. I understand, like, we are now in a kind of, like, a potential turning point where inter regulation intervention is, like, happening, but it's still time to sort out.

Speaker #3: I mean, among players. So I would like to hear, your thoughts on, like, how we should how, how when, when do you think, we will get to a point where industry at large will be, selling at the designated level, like, the earning cost level?

Anita Xu: I think that will be a more gradual process because like Lin just mentioned, the players recently have proposed of lowering the industry level overall rate to around 35% to balance the overall supply and demand in the year ahead. That is based on our estimated demand outlook for next year, including the high level of inventory of around 700,000 metric tons currently. We think maintaining at this rate will allow prices to return to a reasonable level. But of course, I think it would be under the process of first recovering to above cash cost and then to production cost, and finally to full cost. We do think that is going to take at least a couple months going forward. Also that depends on the timing of when the regulation really evolves and rolls out.

Anita Zhu: I think that will be a more gradual process because like Lin just mentioned, the players recently have proposed of lowering the industry level overall rate to around 35% to balance the overall supply and demand in the year ahead. That is based on our estimated demand outlook for next year, including the high level of inventory of around 700,000 metric tons currently. We think maintaining at this rate will allow prices to return to a reasonable level. But of course, I think it would be under the process of first recovering to above cash cost and then to production cost, and finally to full cost. We do think that is going to take at least a couple months going forward. Also that depends on the timing of when the regulation really evolves and rolls out.

Speaker #4: I think that will be, that will be a more gradual process because, like Ming just mentioned, the players recently have proposed, lowering the industry level overall rate to around 35% to balance the overall supply and demand in a year ahead.

Speaker #4: and that's based on our estimated, demand outlook for next year, and including the high level of inventory of around 700,000 metric tons currently. And we think maintaining at this rate will allow prices to return to a reasonable level.

Speaker #4: But of course, I think it would be under the process of first recovering to above cash cost, and then to production cost. And finally, to full cost.

Speaker #4: So it's, we do think that's going to take, at least a couple months going forward. And also that depends on the timing of when the regulation really evolves and rolls out.

Alan Hon: Got it. Okay. Thank you very much for sharing with us the current industry backdrop and your strategy. With that, I will pass on to the next person.

Speaker #3: Got it. Got it. Okay. Thank you very much for ex sharing with us, like, the current, industry backdrop and your strategy. And with that, I'll pass on to the next, next person.

Anita Xu: Thank you.

Anita Zhu: Thank you.

Ming Yang: Great. Thank you, Alan.

Speaker #4: Thank you.

Speaker #1: Okay. Thank you, Ella.

Operator: The next question comes from Phil Shen with Roth Capital Partners. Please go ahead.

Speaker #2: The next question comes from Phil Shen with Roth Capital Partners. Please go ahead.

Phil Shen: Hey, guys. Thanks for taking my questions. First one, Anita, you talked about you are unsure about what the enforcement levels are of the anti-involution policies. I was wondering if you could talk through what we could expect to see as it relates to enforcement. Could the government become more aggressive and is that a key catalyst to support pricing? If they do pursue enforcement, what could they actually do that could be meaningful in impact? Thanks.

Philip Shen: Hey, guys. Thanks for taking my questions. First one, Anita, you talked about you are unsure about what the enforcement levels are of the anti-involution policies. I was wondering if you could talk through what we could expect to see as it relates to enforcement. Could the government become more aggressive and is that a key catalyst to support pricing? If they do pursue enforcement, what could they actually do that could be meaningful in impact? Thanks.

Speaker #5: Hey, guys. Thanks for taking my questions. first one, Anita, you talked about, you're unsure about what the enforcement levels are, of the NG Involution policies.

Speaker #5: I was wondering if you could talk through, what you we could expect to see as it relates to enforcement, you know, could the government become more aggressive in, in is that a key catalyst to, support pricing?

Speaker #5: and then if, if they do pursue enforcement, you know, what, could they actually do that could be meaningful in impact? Thanks.

Anita Xu: Thank you, Phil. I think based on our engagement with our peer players and with CPIA and from attending these meetings, we do sense a firmer tone in combating the vicious competition in the industry. I think that is via two fronts that we see. First is the energy consumption, which would phase out the outdated capacity starting from next year. That is a quite clear point. The other one is the pricing laws that we just mentioned. I think that is still under debate because every company has their own strategies, right? They have their own production, sales, and inventory levels. That is still under the debate. We do think that we will see something coming very soon on that front.

Anita Zhu: Thank you, Phil. I think based on our engagement with our peer players and with CPIA and from attending these meetings, we do sense a firmer tone in combating the vicious competition in the industry. I think that is via two fronts that we see. First is the energy consumption, which would phase out the outdated capacity starting from next year. That is a quite clear point. The other one is the pricing laws that we just mentioned. I think that is still under debate because every company has their own strategies, right? They have their own production, sales, and inventory levels. That is still under the debate. We do think that we will see something coming very soon on that front.

Speaker #4: So thank you, Phil. I think based on our engagement with, our peer players and with CPIA and from attending these meetings, we do sense a firmer tone and combating the vicious competition in the industry.

Speaker #4: and I think that's via two fronts that we see. And first is the energy consumption, which would phase out the outdated capacity starting from next year.

Speaker #4: That's a quite clear point. And the other one is the pricing laws that we just mentioned, but, I think that's still under debate because every company has their own strategies, right?

Speaker #4: And they have their own production sales and inventory. Levels. So, that's still under the debate, and we do think that we'll see something coming, very soon on that front.

Phil Shen: Anita, I would like to explore that a little bit more. Everybody has different levels of where they want to produce and sell and all these things, but ultimately there has got to be some punitive actions that change behavior. What do you think those actions could be?

Philip Shen: Anita, I would like to explore that a little bit more. Everybody has different levels of where they want to produce and sell and all these things, but ultimately there has got to be some punitive actions that change behavior. What do you think those actions could be?

Speaker #5: Hi, Anita. I'd like to explore that a little bit more. So, you know, there's, everybody has different levels of where they want to produce and sell.

Speaker #5: And all these things. But ultimately, somebody there's got to be some punitive. punitive actions that change behavior. so what do you think those actions could be?

Anita Xu: I think the most straightforward punitive action upfront would be via fines for the companies that do not abide by these principles and guidelines. For instance, selling at below the cost level, they need to have punitive actions so that would serve as a red flag and signal for other companies to follow. In terms of the energy consumption, I think it will be easier to measure from that front because you can clearly see how much energy they use when producing polysilicon. I think the utmost extreme case will be when they just cut off the power for these facilities.

Anita Zhu: I think the most straightforward punitive action upfront would be via fines for the companies that do not abide by these principles and guidelines. For instance, selling at below the cost level, they need to have punitive actions so that would serve as a red flag and signal for other companies to follow. In terms of the energy consumption, I think it will be easier to measure from that front because you can clearly see how much energy they use when producing polysilicon. I think the utmost extreme case will be when they just cut off the power for these facilities.

Speaker #4: I think the most straightforward punitive action upfront would be the, fines for the companies that do not abide. By these principles and guidelines. For instance, selling at below like, the ca-cost level, then they need to have punitive actions so that would serve as a red flag and signal for other companies to follow.

Speaker #4: And in terms of the energy consumption, I think it will be easier to, to measure from that front because you can clearly see how much energy they use when producing, polysilicon.

Speaker #4: So I think the utmost extreme case would be when they just cut off the power for the facility.

Phil Shen: Got it. Okay. Thank you very much. Moving on to pricing. You gave some color for Q4 pricing. Could you talk about how you expect pricing to trend in 2027? I know a lot of it might depend on some of these enforcement actions, and so forth, but it would be helpful to have some kind of baseline for 2027 pricing. Thanks.

Philip Shen: Got it. Okay. Thank you very much. Moving on to pricing. You gave some color for Q4 pricing. Could you talk about how you expect pricing to trend in 2027? I know a lot of it might depend on some of these enforcement actions, and so forth, but it would be helpful to have some kind of baseline for 2027 pricing. Thanks.

Speaker #5: Got it. Okay. thank you very much. moving on to pricing, you gave some color for Q4 pricing. could you talk about, how you expect, pricing to trend in 27?

Speaker #5: I know a lot of it might depend on some of these enforcement actions, and so forth. But, it'd be helpful to have some kind of baseline for, 27 pricing.

Speaker #5: Thanks.

Anita Xu: I think in the coming quarters, the goal was to really excel above the all-in cost. Like I mentioned, for us, the benchmark will be based on Q3 all-in cost. That will be at least RMB 43 per kilogram. Based on the execution and how strong the policies roll out, we might expect prices to ramp up, suppose that the supply and demand rebalancing happens faster, and we see stricter policies coming out to recover to, let us say, RMB 45 to 50 per kilogram range.

Anita Zhu: I think in the coming quarters, the goal was to really excel above the all-in cost. Like I mentioned, for us, the benchmark will be based on Q3 all-in cost. That will be at least RMB 43 per kilogram. Based on the execution and how strong the policies roll out, we might expect prices to ramp up, suppose that the supply and demand rebalancing happens faster, and we see stricter policies coming out to recover to, let us say, RMB 45 to 50 per kilogram range.

Speaker #4: I think in the coming quarters, the goal would to really sell above the all-in cost. Like I mentioned, for us, the benchmark would be based on Q3 all-in cost, that would be at least 43 R&D per kilogram.

Speaker #4: And based on the based on the execution and how strong the policies roll out, we might expect prices to ramp up, suppose that the supply and demand rebalancing happens faster.

Speaker #4: And we see a stricter policies coming out to recover to, let's say, 45 to 50 R&D per kilogram range.

Phil Shen: Okay, great. That is helpful. Last one for me on your AIDC activities and investments. You are diversifying. You are spending more money in R&D. Can you talk to us how much in 2027, how much money could you invest in these sectors? Storage, SST, solid-state circuit breakers. When could we see revenues? Could we see any revenues in 2027, or is this really 2028 or beyond, and then which one would be first of these three end markets or products that you are developing? Thanks.

Philip Shen: Okay, great. That is helpful. Last one for me on your AIDC activities and investments. You are diversifying. You are spending more money in R&D. Can you talk to us how much in 2027, how much money could you invest in these sectors? Storage, SST, solid-state circuit breakers. When could we see revenues? Could we see any revenues in 2027, or is this really 2028 or beyond, and then which one would be first of these three end markets or products that you are developing? Thanks.

Speaker #5: Okay. Great. That's helpful. Last one for me on your, AI data center activities and investments. you know, you're diversifying. you're spending more money in R&D.

Speaker #5: can you talk to us how much, in 27, how much money, could you invest in this, these sectors? storage, SST, solid-state circuit breakers, when could we see revenues?

Speaker #5: could we see any revenues in 27, or is this really 2028 or beyond? And then, which one would be first? you know, of these three, end markets or products that you're developing.

Speaker #5: Thanks.

Anita Xu: Yeah. In terms of the AIDCs, we are quite pleased with the progress right now. Construction is already underway, and we have actually broken ground and the pile foundation work has already kicked off. We expect construction to be completed in the H1 of next year. We expect to begin generating sales next year. By the end of next year, we expect project to be at operating cash flow positive. That is primarily driven and thanks to our accumulated experiences and client relationships with our affiliated company, the Daqo Group, which has over 40 years of experiences in electrical equipment. We will see the fastest growth in AIDC related, so the more plug-and-play modular solutions for the AIDCs. We will see revenue and orders in that front first.

Anita Zhu: Yeah. In terms of the AIDCs, we are quite pleased with the progress right now. Construction is already underway, and we have actually broken ground and the pile foundation work has already kicked off. We expect construction to be completed in the H1 of next year. We expect to begin generating sales next year. By the end of next year, we expect project to be at operating cash flow positive. That is primarily driven and thanks to our accumulated experiences and client relationships with our affiliated company, the Daqo Group, which has over 40 years of experiences in electrical equipment. We will see the fastest growth in AIDC related, so the more plug-and-play modular solutions for the AIDCs. We will see revenue and orders in that front first.

Speaker #4: Yeah. So, in terms of the AIDCs, we're quite pleased with the progress right now. So construction is already underway. And, we've actually, broken ground and the, the pile foundation work, has already kicked off.

Speaker #4: And, we expect construction to, to be completed in the first half of next year. And we expect to begin, generating sales next year. and by the end of next year, except we expect projects to be at operating cash flow positive.

Speaker #4: And that's primarily driven and thanks to our accumulated experiences and client relationship with our affiliated, company, the DAQO Group, which has over 40 years of experiences in electrical equipment.

Speaker #4: And we will see the fastest growth in, AIDC-related. So the more plug-and-play modular, solutions for the AIDCs, we will see revenue and orders in that front first.

Phil Shen: Okay. There is a lot you said there. You could see revenue in 2027. What are you selling in 2027? Are you selling storage? Or are you selling solid-state transformers? How much money are you planning to invest to bring that capacity online? What exactly are you Sorry if I missed this, but what is the nameplates of whatever capacity you are building? Thanks.

Philip Shen: Okay. There is a lot you said there. You could see revenue in 2027. What are you selling in 2027? Are you selling storage? Or are you selling solid-state transformers? How much money are you planning to invest to bring that capacity online? What exactly are you Sorry if I missed this, but what is the nameplates of whatever capacity you are building? Thanks.

Speaker #5: Okay. there's a lot you said there. you could see revenue in 27. What are you selling in 27? Are you s-selling storage? or are you selling solid-state transformers?

Speaker #5: And, how much money are you planning to invest? to bring that capacity online. And what, what exactly are you like, sorry if I missed this, but what, what's the nameplate of whatever capacity you're building?

Speaker #5: Thanks.

Anita Xu: Yeah. For next year, we would have orders in the AIDC related, the electrical equipment. What we are selling is actually the integrated solutions for the AIDCs, which include the transformers, the bus gear, the bus ducts, and the switchgear, sorry, and the bus ducts, and that is what we see growing fastest next year. The overall CapEx we expect next year will be CNY 1 billion. That is a rough estimate at this point.

Anita Zhu: Yeah. For next year, we would have orders in the AIDC related, the electrical equipment. What we are selling is actually the integrated solutions for the AIDCs, which include the transformers, the bus gear, the bus ducts, and the switchgear, sorry, and the bus ducts, and that is what we see growing fastest next year. The overall CapEx we expect next year will be CNY 1 billion. That is a rough estimate at this point.

Speaker #4: yeah. So for next year, we would have orders in the AIDC-related, the electrical equipment. So what we're selling is actually the integrated solution for the AIDCs, which includes the transformers, the, the, the, the bus-bus gear, the, the, the bus docks, and there's a switchgear, sorry, and the bus docks.

Speaker #4: And that's what we see growing fastest, next year. And the overall CAPEX we expect next year would be 1 billion R&D. That's, that's the rough estimate at this point.

Phil Shen: Okay, got it. So CNY 1 billion, and then what kind of revenue could we see in 2027? At what margin? Thanks.

Philip Shen: Okay, got it. So CNY 1 billion, and then what kind of revenue could we see in 2027? At what margin? Thanks.

Speaker #5: Okay. Got it. So 1 billion R&D. And then what kind of revenue could we see in 27? At what margin? Thanks.

Anita Xu: I think gross margin will be around 15% to 20% and the net profit margin will be high single digits.

Anita Zhu: I think gross margin will be around 15% to 20% and the net profit margin will be high single digits.

Speaker #4: I think, gross margin will be around, like, 15 to 20 percent. And the net profit margin will be, like, high single digits.

Phil Shen: Okay. Thank you. Look forward to learning more about this business, and I will pass it on.

Philip Shen: Okay. Thank you. Look forward to learning more about this business, and I will pass it on.

Speaker #5: Okay. thank you. Look forward to learning more about this business. And I'll pass it on.

Anita Xu: Great. Thank you, Phil.

Anita Zhu: Great. Thank you, Phil.

Speaker #3: Thank you. Thank you, Phil.

Operator: The next question comes from Alan Lau with Jefferies. Please go ahead.

Speaker #2: The next question comes from Alan Lau with Jefferies. Please go ahead.

Alan Lau: Thanks. I need timing. I would like to follow up on the enforcement question because I recall back in July, there was a meeting between SAMR and the industry players. Back then, I think the message was enforcement this time will be in place, given that there was 2 years already. I wonder, because if you look at the ASP of most players or the market prices, yes, there is a lot of inventory in the industry, but what is stopping the authority from enforcing or is it back to more market-driven after a couple of meetings?

Speaker #1: thanks. anytime, Ming. so, we'd like to follow up on, the enforcement question because I recall back in, July, there was a meeting b between SAML and the industry players.

Speaker #1: Back then, I think the message was, enforcement this time will be our in place, given that there was two years already. So, when the like, because if you look at the ASP of, most players or the market prices, yes, there's a lot of inventory in the industry, but what's stopping the authority from enforcing or, or, like, i-is it back to more market-driven?

Speaker #1: after a couple of meetings.

Anita Xu: I think when we sat down to discuss in more depth what was the thing that somewhat delayed the process was that once we, let us say, set an overall production volume and sales volume for the industry, that could cause potential monopoly in the industry, and that would not lead to the long-term healthy development of the polysilicon as well as the entire value chain. I think that was the primary concern. We had to reconsider how to best set the guidelines for the companies and for the players in the industry.

Anita Zhu: I think when we sat down to discuss in more depth what was the thing that somewhat delayed the process was that once we, let us say, set an overall production volume and sales volume for the industry, that could cause potential monopoly in the industry, and that would not lead to the long-term healthy development of the polysilicon as well as the entire value chain. I think that was the primary concern. We had to reconsider how to best set the guidelines for the companies and for the players in the industry.

Speaker #4: I think when, we sat down to discuss in more depth, what was the thing that somewhat, delayed the process was that, once we, let's say, set a overall production volume and sales volume for the industry, that could cause potential monopoly in the industry and that would not lead to the long-term healthy development of the poly silicon as well as the entire value chain.

Speaker #4: I think that was the primary concern. So, we have to reconsider how to best, set the guidelines for the companies and for the players in the industry.

Alan Lau: Understood. How do you see the growth rate of demand next year globally or in China?

Speaker #1: Understood. So, so, so how do you see, the, the, the growth rate of demand next year for, yeah, globally or in, in China?

Anita Xu: I think overall in China, the demand compared to this year would be relatively flat or even at a I would say like a Y-o-Y decrease. Like a small amount of Y-o-Y decrease overall, but globally, overall, maybe around a high single-digit growth across the globe.

Anita Zhu: I think overall in China, the demand compared to this year would be relatively flat or even at a I would say like a Y-o-Y decrease. Like a small amount of Y-o-Y decrease overall, but globally, overall, maybe around a high single-digit growth across the globe.

Speaker #4: I think overall in China, the demand compared to this year would be, relatively flat or even at a, I would say, like, a worldwide decrease.

Speaker #4: like, a small amount of worldwide decrease overall. But globally, overall, maybe around a high single digit growth across the globe.

Alan Lau: Okay.

Speaker #1: I see. So, yeah.

Speaker #4: Percent and yeah, but previously, we have installed a significant amount of, solar PV. So, yeah, because we have a because previously we have installed a lot of the, the, the solar PV.

Anita Xu: But previously, we have installed a significant amount of solar PV. Because previously we have installed a lot of the solar PV, I think in the next year or so, it will be somewhat slower in terms of the pace.

Anita Zhu: But previously, we have installed a significant amount of solar PV. Because previously we have installed a lot of the solar PV, I think in the next year or so, it will be somewhat slower in terms of the pace.

Speaker #4: So I think in the next year or so, it will be somewhat slower in terms of the pace.

Alan Lau: Understood. This year, I think demand declined quite meaningfully year-over-year last year. I think, in terms of numbers, is it in the mid or high 100-ish gigawatt, and next year maybe you see another 10% decline year-over-year, in China?

Speaker #1: Understood. So, this year, I think, demand decline quite meaningfully year over year last year. So I think, in terms of numbers, is it in the mid or high one-one hundred-ish gigawatt and next year.

Speaker #1: Maybe you see another like 10% decline year over year in China?

Anita Xu: Yeah, I think next year will still be around the high 100 to 200 gigawatts.

Anita Zhu: Yeah, I think next year will still be around the high 100 to 200 gigawatts.

Speaker #4: Yeah. I think next year will still be around, like, the high, 100 to, like, 200 gigawatts.

Alan Lau: I see. Next year on this basis, probably slight decline while overseas market.

Speaker #1: I see. So next year on this basis, probably slight decline. While over this market. A bit of slight growth. So net, net pretty flattish.

Anita Xu: Yeah, slight decline.

Anita Zhu: Yeah, slight decline.

Alan Lau: A bit of slight growth, so net-net pretty flattish.

Anita Xu: Yes, that is correct.

Anita Zhu: Yes, that is correct.

Speaker #4: yeah. That's correct.

Alan Lau: I see. Wonder if you see any signs of exit from the market, because one of the leading company in the industry are buying out another one. But wonder if you see any of other similar, voluntary acquisition or exit from the market, et cetera.

Speaker #1: I see. So, wonder if you see any, signs of, exit from the market, because, like, like, like some one of the leader, leading company in the industry are buying out another one.

Speaker #1: But wonder if you see any of other similar like voluntary acquisition or exit from the market, etc.?

Anita Xu: I think this will be more market-oriented because starting from 1 January of next year, first of all, the outdated capacity, which have a higher energy consumption level, will gradually phase out of the market. From a more fair perspective, I would say the players currently have a comfortable stage, with their current nameplate capacity. Based on what we are discussing right now, I think all the players will have to lower their utilization rates to balance out the demand. I would say if a player is to acquire another company, if the valuation is at a reasonably low level, that would be an option. Or if that poses a different strategy for the company, say, overseas expansion or so, I guess that would also be a consideration when we think about potential acquisitions.

Anita Zhu: I think this will be more market-oriented because starting from 1 January of next year, first of all, the outdated capacity, which have a higher energy consumption level, will gradually phase out of the market. From a more fair perspective, I would say the players currently have a comfortable stage, with their current nameplate capacity. Based on what we are discussing right now, I think all the players will have to lower their utilization rates to balance out the demand. I would say if a player is to acquire another company, if the valuation is at a reasonably low level, that would be an option. Or if that poses a different strategy for the company, say, overseas expansion or so, I guess that would also be a consideration when we think about potential acquisitions.

Speaker #4: I think this will be more market-oriented because starting from January 1st of next year, first of all, the all data capacity which have a higher energy consumption level would gradually phase out of the market.

Speaker #4: And, from a more fair perspective, I would say the players currently have a comfortable state, with their current nameplate capacity. And based on what we're discussing right now, I think all the players will have to lower their utilization rate to balance out the demand.

Speaker #4: So yeah, I, I would say if a player is to acquire another company if the valuation is at a reasonably low level, that would be an option.

Speaker #4: Or if that poses like a strategic a different strategy for the company. Say, overseas expansion or so, I guess that would also be a consideration, when we think about potential acquisition.

Alan Lau: By overseas expansion, what do you mean? Like policy-driven overseas expansion or because, first of all, the US market seems to be quite restrictive on Chinese players' products. Secondly, seems Chinese government is also imposing some restrictions on export of equipment as well.

Speaker #1: All right. So by overseas ex-expansion, what do you mean? Like poly silicon overseas expansion or because first of all, the US market seems to be quite restrictive on, on, on, on Chinese players' products.

Speaker #1: Secondly, seems Chinese government is also imposing some restrictions on export of equipment as well.

Anita Xu: Yeah, I am primarily talking about players that might have completed a certification or a traceability requirement. Because some players might have applied for a specific traceability standard to have their products abroad. And that is what I am talking about in terms of potential overseas expansion, not specifically setting a factory overseas, like in the US or so.

Anita Zhu: Yeah, I am primarily talking about players that might have completed a certification or a traceability requirement. Because some players might have applied for a specific traceability standard to have their products abroad. And that is what I am talking about in terms of potential overseas expansion, not specifically setting a factory overseas, like in the US or so.

Speaker #4: Yeah. Primary talking about players that might have completed like a certification or like a traceability. traceability requirement, right? Because some players might have applied for a specific traceability standard to have their products abroad.

Speaker #4: And that's what I'm talking about in terms of potential overseas expansion. Not specifically like setting a factory overseas like in the US or so.

Alan Lau: Understood. Last question is about, given that the company is still holding on significant amount of cash and stock price is still a bit depressed at least. When the company would think it is appropriate to enhance the shareholder return?

Speaker #1: Mm-hmm. Understood. So, last question is about given that the company is still holding on significant amount of cash and stock prices will she be depressed the least?

Speaker #1: So wonder if when the company would think it's appropriate to enhance the shareholder risk return?

Anita Xu: First of all, we recognize the current state, and we strongly believe that returning value to our shareholders remains a priority for our management team and our board. At the current share price, we are significantly undervalued relative to our balance sheet and also our long-term earnings power. A share repurchase is definitely something that we are actually considering. But deciding to launch a program, we want to have a more clear view of how the anti-involution policy is rolled out and enforced. Also how our peers will respond to the current situation. We think that these factors all directly affect the energy pricing and our cash generation abilities. To us, that really means the right size and form of any potential capital return. We totally understand that an investor would like us to act now, given our strong cash position.

Anita Zhu: First of all, we recognize the current state, and we strongly believe that returning value to our shareholders remains a priority for our management team and our board. At the current share price, we are significantly undervalued relative to our balance sheet and also our long-term earnings power. A share repurchase is definitely something that we are actually considering. But deciding to launch a program, we want to have a more clear view of how the anti-involution policy is rolled out and enforced. Also how our peers will respond to the current situation. We think that these factors all directly affect the energy pricing and our cash generation abilities. To us, that really means the right size and form of any potential capital return. We totally understand that an investor would like us to act now, given our strong cash position.

Speaker #4: first of all, we recognize the current state and we, we do think we strongly believe that returning value to our shareholders remains a priority for our management team and our board.

Speaker #4: And at the current share price, we are significantly undervalued relative to our balance sheet and also our long-term the, the earnings power. so a share repurchase is definitely something that we actually considering.

Speaker #4: but deciding to launch a program, we want to have a more clear view of how the anti-involution policy is rolled out and enforced. And also how our peers will respond to the current situation.

Speaker #4: And we think that these factors all directly affect the industry pricing and our cash generation ability. And that means the that means the from to us, that really means the right size and form of any potential capital return.

Speaker #4: So we, we totally understand that i-investor would want us I would like us to act now given our strong cash position. but I think waiting a, a, a shorter a short period of policy clarity would allow us to size any return correctly and choose the most effective form either in the form of a share repurchase or, or via a dividend.

Anita Xu: I think waiting a short period of policy clarity would allow us to size any return correctly and choose the most effective form, either in the form of a share repurchase or via dividend. This is really a question of timing for our management team. We are definitely keeping a close eye on the dynamics, and we will discuss the options with the board again in the next coming month and even in Q4 again. We will communicate the decision to launch, and once we have that decision finalized, we will communicate promptly with our shareholders.

Anita Zhu: I think waiting a short period of policy clarity would allow us to size any return correctly and choose the most effective form, either in the form of a share repurchase or via dividend. This is really a question of timing for our management team. We are definitely keeping a close eye on the dynamics, and we will discuss the options with the board again in the next coming month and even in Q4 again. We will communicate the decision to launch, and once we have that decision finalized, we will communicate promptly with our shareholders.

Speaker #4: So this is really a, a question of timing for our management team. So we are definitely keeping a close eye on the dynamics and we'll discuss the options with the board again and i-in the next coming month and even in, in Q4 again.

Speaker #4: So we'll communicate the decision to launch and once we have that, that decision finalized, we'll communicate promptly with our shareholders.

Alan Lau: I see. Thanks. Thanks, Anita. We'll pass on. Thank you.

Speaker #1: I see. Thanks. Thanks, Anita. we'll pass on. Thank you.

Anita Xu: Thank you.

Anita Zhu: Thank you.

Ming Yang: Thank you, Owen.

Speaker #4: Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you, Ellen.

Operator: The next question comes from Irma with Citibank. Please go ahead.

Speaker #3: The next question comes from Irma with Citibank. Please go ahead.

[Analyst] (Citibank): Thank you for taking my question. My first question is about the sales volume. What is the expected sales volume in Q1, and also the volume outlook for 2027?

Irma Rachmawati: Thank you for taking my question. My first question is about the sales volume. What is the expected sales volume in Q1, and also the volume outlook for 2027?

Speaker #5: thank you for taking up my questions. So my first question is about the sales volume. So what is the expected sales volume in the first quarter and also the volume outlook for 2027?

Anita Xu: I think our sales volume in Q4 would be relatively similar to or close to our production levels. We will strengthen our efforts and our sales. I will say our top priority is really to reduce our inventory.

Anita Zhu: I think our sales volume in Q4 would be relatively similar to or close to our production levels. We will strengthen our efforts and our sales. I will say our top priority is really to reduce our inventory.

Speaker #4: I think our for our sales volume in Q4 would be relatively similar to or close to our production level. So we'll strengthen our efforts and our sales.

Speaker #4: And I would say our, our top, top priority is really to reduce our inventory.

[Analyst] (Citibank): Okay. Is there any outlook for 2027?

Irma Rachmawati: Okay. Is there any outlook for 2027?

Speaker #5: Okay. So is there any outlook for 2027?

Anita Xu: In terms of sales?

Anita Zhu: In terms of sales?

Speaker #4: In terms of sales?

[Analyst] (Citibank): Yes.

Irma Rachmawati: Yes.

Speaker #5: Yes.

Anita Xu: I think the goal for us is to maintain our market share. That will be around 15% of the market for 2027.

Anita Zhu: I think the goal for us is to maintain our market share. That will be around 15% of the market for 2027.

Speaker #4: I think the, the, the goal for us is to maintain our market share. So that will be around 15% of the market for 2027.

[Analyst] (Citibank): Thank you, Anita. My second question is about the production cost. We have seen that the cash production costs have been declining quarter by quarter. Can we also expect a similar trend in Q4 and also in next year? If yes, what will be the percentage scale?

Irma Rachmawati: Thank you, Anita. My second question is about the production cost. We have seen that the cash production costs have been declining quarter by quarter. Can we also expect a similar trend in Q4 and also in next year? If yes, what will be the percentage scale?

Speaker #5: Okay. Thank you, Anita. So my second question is about the production cost. So we've seen that the cash flow production cost have been declining quarter by quarter.

Speaker #5: can we also expect a similar trend in the fourth quarter and also in next year? So if yes, what will be the percentage gap?

Ming Yang: Okay. Hello, Irma. Thank you for your question. We did see fairly significant cost reduction across our facilities in Q3, and this is primarily via a reduction in energy usage, particularly related to electricity, as well as silicon powder, and also in steam and via a technical upgrade. Also benefiting from some benefits from silicon and silicon metal of price decline. I would say based on current trend, we would expect Q4 costs to be similar to Q3 costs based on the most recent data we have. Then we would expect 2027 to be also similar to Q3 costs, maybe with a slight reduction.

Speaker #2: Okay. Hello, Erin. Thank you for your question. So we did see fairly significant cost reduction across our facility in Q3. And this is primarily via a reduction in energy usage particularly related to electricity.

Speaker #2: As well as silicon powder. And also in steam. and via a technical upgrade. so and also benefiting from some benefits from silicon and, and silicon metal of, of price decline.

Speaker #2: So I would say based on current trend, we would expect Q4 cost to be similar to Q3 cost based on the, the, the most recent da-data we have.

Speaker #2: And then we would expect 2027 to be also similar to Q3 cost maybe with a slight reduction.

[Analyst] (Citibank): Thank you, Ming. My last question is about the inventory provision. I saw that the inventory provision in Q4 is slightly less compared to Q2. I would ask if at the current price, will there still be inventory provision in Q4, or what is the condition to make the provision?

Irma Rachmawati: Thank you, Ming. My last question is about the inventory provision. I saw that the inventory provision in Q4 is slightly less compared to Q2. I would ask if at the current price, will there still be inventory provision in Q4, or what is the condition to make the provision?

Speaker #5: thank you, May. And my last question is about the inventory provision. So I saw that the inventory provision in fourth quarter is slightly less compared to the second quarter.

Speaker #5: and I would ask if at the current price we'll still see inventory provision in the fourth quarter or w-what is the condition to make the provision?

Ming Yang: Okay. I would say if the market remains at the current ASP, we would expect Q4 inventory provision to be less than Q3.

Speaker #2: Okay. I would say if the market remains at the current ASP, we would expect Q4 inventory provision to be less than Q3.

[Analyst] (Citibank): So it means that the market price should be higher than Q3, which is your all-in cost, then there will no longer be any inventory provision. Is that correct?

Irma Rachmawati: So it means that the market price should be higher than Q3, which is your all-in cost, then there will no longer be any inventory provision. Is that correct?

Speaker #5: So it, it means that the e market price should be higher than for Q3, which is your all-in cost. Then there will be and there will be no longer be any inventory provision.

Speaker #5: Is that correct?

Ming Yang: Well, let's say we would expect Q4 ASP to be higher than Q3. So we would expect, I would say, a reduction in inventory provision from that perspective.

Speaker #2: or, or let's say we would expect Q4 ASP to be higher than Q3. So we would expect I, I would say some a reduction in inventory provision.

Speaker #2: In from that perspective.

[Analyst] (Citibank): Okay. That's all my questions. Thank you.

Irma Rachmawati: Okay. That's all my questions. Thank you.

Speaker #5: Okay. that's all my question. Thank you.

Ming Yang: Great. Thank you.

Speaker #2: Great. Thank you.

Operator: The next question comes from Gordon Johnson with GLJ Research. Please go ahead.

Speaker #3: The next question comes from Gordon Johnson with GLJ Research. Please go ahead.

Gordon Johnson: Hey, guys. Thanks for taking the question.

Speaker #6: Hey, guys. Thanks for taking the question. So you built hey. How's it going? So you've built roughly 70,000 metric tons of inventory this year.

Ming Yang: Hello, Gordon.

Gordon Johnson: Hey, how's it going? You've built roughly 70,000 metric tons of inventory this year. With Q4 production guided to 35,000 to 45,000 metric tons, what sales volume do you expect in Q4, and how much of the $140 million in customer advances will be delivered against this quarter? I have a follow-up. Thanks.

Speaker #6: with Q4 production guided to 35 to 45,000 metric tons, what sales volume do you expect in Q4 and how much of the 140 million in customer advances will be delivered against this quarter?

Speaker #6: And I have a follow-up. Thanks.

Ming Yang: Okay. Currently, we expect Q4 shipments to be higher than the Q4 production, with a reduction in inventory as a result. I would say, because we receive payment before we deliver products. Certainly, I think, for example, the $140 million is all contracted for and is expected to be delivered in Q4, while we would continue to receive additional orders as well.

Speaker #2: Okay. currently, we expect Q4 shipment to be higher than the Q4 production. So with a reduction in inventory, as a result. And I would say because we, we see payment before we deliver products.

Speaker #2: And so certainly, I, I, I think for example, maybe I, I mean, the 140 million is all contracted for and is expected to be delivered in Q4 while we would continue to receive additional orders as well.

Gordon Johnson: Very helpful. Now that you're free cash flow positive this quarter, congrats on that, by the way, what are the priorities for the $2.6 billion? How much will you commit to the AIDC platform with Daqo Group? How is that related party deal being reviewed and priced? How much cash sits at the DAQO parent level versus Xinjiang DAQO? Thanks for the questions again.

Speaker #6: Very helpful. And, and now that you're free cash flow positive this quarter, congrats on that by the way. What are the priorities for the 2.6 billion?

Speaker #6: how much will you commit to the AI data center platform with Daku Group? And how is that related party deal being reviewed and priced?

Speaker #6: And how much cash sits at the Daku parent level versus Ming Yang Daku? And, and thanks for the questions again.

Ming Yang: Okay. I would say for AIDC, our committed CapEx currently is around $200 million or so, in that range, and primarily is to build up the facility and related manufacturing and equipment for the AIDC business. Certainly on the parent level right now, we have over $300 million. This is offshore. On the domestic entity, Xinjiang DAQO, there's roughly CNY 10 billion of cash balance there.

Speaker #2: Okay. I, I would say for AICC are committed CapEx currently is around 200 million dollar. Or so, in that range. And primarily, it's to build up the, the facility and related manufacturing and, and equipment for the IDC.

Speaker #2: Business. And, and certainly, on the parent level right now, we have over 300 million dollars. And then on the this is offshore. And then on the domestic entity, Xinjiang Daku, there's roughly 10 billion RMB of cash balance there.

Gordon Johnson: Thanks again.

Speaker #6: Thanks again.

Ming Yang: Great. Thank you.

Jessie Zhao: Thank you.

Speaker #2: Great. Thank you.

Speaker #7: Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over for any closing remarks.

Speaker #3: This concludes our question and answer session. I'd like to turn the conference back over for any closing remarks.

Jessie Zhao: Thank you everyone again for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you, and have an awesome day. Goodbye.

Speaker #7: Thank you, everyone, again, for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you and have a awesome day.

Speaker #7: Goodbye.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.