Ming Wang

Ming Wang questioned Daqo New Energy's current unit electricity consumption per kilogram of polysilicon. He also asked for the rationale behind the company's decision to raise its Q4 production plan by over 30%, contrasting it with peer strategies and traditional weak demand seasons, and how this aligns with industry-wide production quota narratives. Additionally, he sought confirmation on whether over 50% utilization could be a reasonable guidance for 2026 and beyond.

Answer

Ming Yang, CFO, stated that the unit electricity consumption per kilogram of polysilicon is currently in the range of 52-55 kWh, varying by facility. Anita Zhu, Deputy CEO, explained that Daqo, having been aggressive in lowering utilization initially, is now more confident due to Q3 price recovery and an optimistic outlook from consolidation and energy consumption standards. Increasing production in Q4 further reduces per-unit costs. She confirmed that over 50% utilization would be a reasonable assumption for 2026.

Ming Wang questioned Daqo New Energy's unit electricity consumption for polysilicon production, the rationale behind its increased Q4 production plan compared to peers, and the outlook for 2026 utilization rates.

Answer

CFO Ming Yang stated current unit electricity consumption is 52-55 kWh/kg. Deputy CEO Anita Zhu explained the Q4 production increase is due to recovered prices, an optimistic industry outlook, and further cost reduction opportunities, suggesting a reasonable 50%+ utilization rate for 2026.