Daqo posts losses of US$81.5 million in Q1 as polysilicon production and sales continue to fall

Daqo New Energy, a Chinese polysilicon producer, reported selling 28,008 metric tonnes of polysilicon in the first quarter of 2025, marking the seventh consecutive quarter of declining sales. The company recorded gross losses of US$81.5 million and a gross margin of -65.8% during this period, a decline from the previous quarter’s figures.

The company’s financial performance was negatively impacted by a decrease in both polysilicon sales volume and prices. Despite a significant drop in polysilicon production over the past year, the first quarter of 2025 saw sales surpass production for the second consecutive quarter, which the company’s leadership considered a success.

Daqo CEO Xiang Xu mentioned that the company operated at a reduced capacity due to market challenges and low prices. The industry as a whole faced oversupply issues, leading to a reduction in industry inventory levels. Daqo responded by cutting production capacity and lowering polysilicon prices in an effort to boost sales, although this may make it harder for the company to return to profitability.

Looking ahead, Daqo anticipates a decrease in polysilicon production volumes, citing rising production costs as a factor. The company aims to produce between 110,000 and 140,000 metric tonnes by the end of the year, a significant drop from the previous year’s production levels.

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