China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy Corporation reported a revenue of $123.9 million in the first quarter (Q1) of 2025, a 70% decrease from $415.3 million in the same period last year.

The revenue decline was primarily attributed to a decrease in sales volume.

“In Q1 2025, the solar PV industry faced significant challenges. Overcapacity persisted, and polysilicon prices stayed below cash cost levels. Although this caused Daqo New Energy to sustain quarterly operating and net losses, our losses narrowed, and we maintained a strong, healthy balance sheet with no financial debt,” said Anita Zhu, Deputy Chief Executive Officer, Daqo.

Sales volume dropped to 28,008 MT, down from 42,191 MT in Q4 2024. Similarly, production volume fell from 34,236 MT in Q4 2024 to 24,810 MT in Q1 2025.

“Total production volume at our two polysilicon facilities for the quarter was slightly below our guidance range of 25,000 metric tons to 28,000. However, sales volume reached 28,008 metric tons, exceeding production and enabling us to reduce inventory to a healthier level,” Zhu said.

He added, “We’ve seen that the overall industry utilization rate is currently at around 40% to 50%. And we actually haven’t seen any companies completely exiting the market. Most of them are either lowering their utilization rate or undergoing this temporary shutdown.”

Xiang Xu, CEO of Daqo New Energy, commented, “In light of the current market conditions, we expect our total polysilicon production volume in the second quarter of 2025 to be approximately 25,000 MT to 28,000 MT. As a result, we anticipate our full year 2025 production volume to be in the range of 110,000 MT to 140,000 MT.”

The company’s net loss saw a 60% year-over-year (YoY) decline from $180.2 million to $71.8 million in Q1 of 2025.

In Q1, Daqo reported negative earnings before interest, taxes, depreciation, and amortization of $48.4 million. The company’s earnings per share loss stood at $0.80, compared to $0.55 in the same period last year.

As of March 31, 2025, the company had $791.9 million in cash, cash equivalents, and restricted cash, compared to $1,038.3 million as of December 31, 2024, and $2,689.3 million as of March 31, 2024.

“In total, our quick assets, readily convertible into cash if needed, stood at $2.15 billion, providing us with ample liquidity. With no financial debt, our solid financial position gives us the confidence that we will remain strategically resilient and well-positioned to overcome the current market downturn,” added Xu.

The solar industry continued to show promising prospects, with China’s new solar installations reaching a capacity of 59.71 GW in Q1, a 30.5% YoY growth.

“Looking ahead, Daqo New Energy is well-positioned to capitalize on the long-term growth in the global solar PV market and strengthen its competitive edge by enhancing its higher-efficiency N-type technology and optimizing its cost structure through digital transformation and AI adoption,” said Xu.

The company is also expecting improved profitability and healthier margins.

Xu also stated, “Given the relatively high level of polysilicon inventory held by wafer manufacturers, price increases have yet to materialize in the polysilicon segment fully. Polysilicon prices remained stable at approximately RMB37 (~$5.09)-42 (~$5.78)/kg throughout the quarter. In the medium to long-term, however, we believe current low prices and the market downturn will eventually result in a healthier and more sustainable industry.”

Xu believes that future prices will remain at the current levels due to policy changes in February. He said, “We expect the price level to remain at the current range before the policy cutoff date of May 31st, especially because we expect strong April and May demand at around 55 gigawatts to 65 gigawatts, translating to a total demand of around 125,000. We maintain cautious and expect pricing to be relatively suppressed at the low price range of RMB35 to RMB40 per kilogram throughout the remainder of 2025.”

Guidance for Q2 2025

The company expects to produce approximately 25,000 MT to 28,000 MT of polysilicon during Q2 2025.

It is also expected to produce approximately 110,000 MT to 140,000 MT of polysilicon in the entire 2025 period.

In Q4 2024, Daqo reported a 1.56% YoY drop in revenue to $195.4 million in Q4 2024 from $198.5 million.

The company also saw a significant decline in revenue to $219.9 million in Q2 2024 due to a drop in polysilicon prices below production costs.