Daqo New Energy’s Subsidiary Xinjiang Daqo Provides Preliminary Estimates of Net Profit for 2022

PVTIME – Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, announced that its subsidiary Xinjiang Daqo New Energy (“Xinjiang Daqo”) had provided estimate of its net profit in 2022 to the Shanghai Stock Exchange.

Xinjiang Daqo estimates that under PRC GAAP its net profit attributable to Xinjiang Daqo’s shareholders in 2022 would be in the range of RMB19.0~19.2 billion, representing a 231.9%~235.4% increase as compared to net profit attributable to Xinjiang Daqo’s shareholders of RMB5.7 billion in 2021. Xinjiang Daqo’s unaudited net profit attributable to its shareholders in the three quarters ended September 30, 2022 was RMB15.1 billion.

Daqo New Energy currently beneficially owns 72.7% of Xinjiang Daqo’s equity interest, and a majority of the Company’s revenue and net income are contributed by Xinjiang Daqo. The estimated net profit described in this press release was prepared solely for Xinjiang Daqo in RMB in accordance with PRC GAAP and is subject to change upon completion of Xinjiang Daqo’s internal financial closing and reporting process. In contrast, the Company’s consolidated financial results for the year ended December 31, 2022 will be reported in U.S. dollars in accordance with U.S. GAAP.

The estimated profit described in this press release is based solely on the information currently available to Xinjiang Daqo’s management. Its actual result could vary materially from this preliminary estimate. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided. The estimated net profit should not be viewed as a substitute for full financial statements of Xinjiang Daqo prepared in accordance with PRC GAAP. In addition, the estimated net profit is not necessarily indicative of the results to be achieved by Xinjiang Daqo in any future period.