Alan Han

Alan Han with JPMorgan Chase & Co. inquired about Daqo New Energy's potential share buyback strategy, considering the company's recent achievement of positive operating cash flow for the full year. He also sought clarity on the policy outlook regarding industry consolidation, including the impact of the newly formed consolidation platform and recent M&A activities by peers, asking if such strategies align with Daqo's plans.

Answer

Deputy CEO Anita Xu stated that share repurchase is a closely monitored capital allocation topic, but the company is taking a prudent, wait-and-see approach for policy clarity on China's anti-involution initiatives before proceeding. Regarding industry consolidation, Ms. Xu views peer acquisitions as strategic decisions reflecting confidence and market consolidation goals. She reiterated Daqo's support for anti-involution as a national priority, aiming for a value-driven, healthier industry structure, and confirmed active discussions around the SPV for consolidation, anticipating initial investment injections and a phased approach to achieve efficient resource allocation and operational synergies.

Alan Han asked about Daqo New Energy's potential share buyback strategy, given the company's positive operating cash flow, and sought clarity on the policy outlook regarding industry consolidation, including the role of the SPV and recent M&A activities by peers.

Answer

Deputy CEO Anita Xu stated that share repurchase is being closely monitored as part of capital allocation, but the company is taking a prudent, wait-and-see approach for more clarity on China's anti-involution policies. Regarding consolidation, Ms. Xu viewed peer M&A as strategic and constructive, aligning with national anti-involution goals. She confirmed the establishment of an SPV for consolidation, with active discussions emphasizing a market-oriented approach, and anticipated phased progression with initial investments and gradual consolidation over a couple of years.