Man Win

Man Win asked for more details on Daqo New Energy's M&A targets, specifically what kind of capacity the company would prefer to acquire. He also sought clarification on how to define the success of the anti-involution initiative in the polysilicon sector, what milestones to look for, and when it would be considered complete.

Answer

Deputy CEO Anita Xu stated that the company is comfortable with its current position and does not have a specific market share target for acquisitions, but would consider opportunities aligned with the national anti-involution initiative. She explained that the anti-involution initiative would extend over several years due to deep-rooted overcapacity (3 million metric tons vs. 1.32 million metric tons demand). Success would be defined by the exit of outdated and smaller players, prices restoring to healthier levels, and the industry becoming profitable to support renewable energy goals. Ms. Xu confirmed that the aim is to sustain polysilicon prices above current levels to facilitate the exit of outdated capacity and take smaller players offline.