Mengwen Wang's questions to DAQO NEW ENERGY (DQ) leadership • Q2 2025
Question
Mengwen Wang of Goldman Sachs asked for clarity on the benchmark production costs used to determine policy-regulated pricing. She also inquired about the company's strategy for balancing price and inventory if high prices lead to a decline in shipment volume.
Answer
CFO Ming Yang explained that the company believes prices must remain above the industry's average production cost, which he estimated to be in the mid-40s RMB range. He noted that industry policies would help balance supply with demand to support this price level. Deputy CEO Anita Zhu added that the company will manage utilization rates to control inventory and has used the futures market to hedge risk.