Alan Lang's questions to Daqo New Energy Corp (DQ) leadership • Q4 2024
Question
Alan Lang of Jefferies questioned the drivers behind the Q4 cash cost reduction, the company's strategy regarding FBR technology, the status of the share buyback program, and the rationale for the low 2025 production guidance.
Answer
CFO Ming Yang attributed the lower cash cost (RMB 35/kg) to improved efficiency and focusing production in top-tier facilities, expecting costs to remain stable. Deputy CEO Anita Zhu stated Daqo has no concrete plans for FBR technology due to purity and stability risks but is researching it. She also noted the company is awaiting a market turning point before executing its buyback and that the low production guidance is a strategic choice to manage cash burn, which could be revised up if demand improves.