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- **Profit Recovery**: Q3 EBITDA of $45.8M and adjusted net income of $3.7M mark a turnaround, with cash costs hitting a record low of $4.54/kg.
- **Revenue Surge**: Sales volume jumped 134% QoQ to 42,400 metric tons, driven by inventory liquidation and price recovery to RMB 49-55/kg.
- **Gross Margin Turnaround**: Positive gross margin of 3.9% in Q3, with expectations for continued positivity in Q4 as industry consolidation curbs overcapacity.
- **Cost Efficiency**: 12% QoQ production cost decline and 11% cash cost reduction highlight operational excellence, supporting long-term competitiveness.
- **Strategic Positioning**: With $2.21B in financial assets and no debt, the company is well-positioned to capitalize on industry consolidation and solar growth.

**【Management Opening Remarks】**
- The company reported positive EBITDA of USD 45.8 million and adjusted net income of USD 3.7 million for Q3 2025, marking a recovery from prior quarters.
- Cash balance stood at USD 551.6 million, with total financial assets (cash, investments, and deposits) reaching USD 2.21 billion, reflecting strong liquidity.
- Polysilicon production reached 30,650 metric tons, exceeding guidance, with sales volume surging to 42,400 metric tons due to inventory liquidation and favorable pricing.
- Production costs declined 12% QoQ to USD 6.38 per kg, with cash costs hitting a record low of USD 4.54 per kg, driven by efficiency improvements and cost control.

**【CFO Financial Commentary】**
- Revenues rose to USD 244.6 million (vs. USD 75.2 million in Q2 2025), with gross profit turning positive at USD 9.7 million, reflecting a 3.9% gross margin.
- Operating expenses remained stable at USD 32.3 million, while R&D expenses were minimal at USD 0.6 million.
- Net loss narrowed to USD 14.9 million, with adjusted net income improving to USD 3.7 million, up from a loss of USD 57.9 million in Q2.
- EBITDA margin improved to 18.7%, up from negative 64% in Q2, signaling operational turnaround.

**【Q&A Key Highlights】**
- **Gross Margins**: CFO Ming Yang confirmed Q3 gross margin turned positive and expects Q4 to remain positive, driven by cost reductions and price stabilization.
- **Industry Consolidation**: Deputy CEO Anita Zhu highlighted government efforts to reduce overcapacity via energy consumption standards, potentially cutting effective capacity by 16.4%.
- **Cost Trends**: Cash costs are expected to decline further in Q4, with QoQ reductions in the low single digits.
- **Demand Outlook**: Despite traditional Q4 weakness, the company raised production guidance to 39,500-42,500 metric tons, citing confidence in market recovery and cost efficiency.
- **Share Buyback**: Buyback progress is contingent on clarity around industry consolidation costs and market conditions.
- **Future Installations**: China's solar installations may grow to 270-280 GW in 2026, up from 220-250 GW in 2025, aligning with national energy targets.

Daqo New Energy Corp. (DQ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Expense

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Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DQ

DQ fundamentals

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