Question · Q3 2025
Gordon Johnson asked about Daqo New Energy's Q4 gross margin expectations, considering the reported production cost of $6.38 and current polysilicon prices from PV Insights and Guangzhou Futures Exchange. He also inquired if the company's strategy of selling from inventory was complete or would continue. Lastly, he sought the company's expectations for total solar installations in China for 2026 compared to 2025, in light of the new five-year plan.
Answer
Ming Yang, CFO, clarified that polysilicon futures prices require a 13% VAT subtraction and projected a low to mid-single-digit gross margin for Q4. He stated that Q4 sales volume is expected to be similar to production volume, but the company will continue to seek opportunities to sell additional inventory. Anita Zhu, Deputy CEO, forecasted China's solar installations for 2026 to be relatively stable or show low single-digit growth compared to 2025 (estimated 220-250 GW), potentially reaching 270-280 GW.