Daqo IPO plans edge forward as company forecasts 50% leap in sequential revenue

Facebook
Twitter
LinkedIn
Reddit
Email
Surging polysilicon ASPs have led Daqo to forecast a 50% jump in sequential revenue in Q2 2021. Image: Daqo New Energy.

Polysilicon provider Daqo New Energy has seen its initial public offering (IPO) plans progress after its application was sent to China’s Securities Regulatory Commission (CSRC) last week.

Daqo first signalled its intent to list its major operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s science technology innovation board, otherwise known as the STAR Market, last summer in a bid to raise funds for planned expansions.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The company then revealed last September that its application had been submitted to the Shanghai Stock Exchange. Those application documents have now been submitted to the CSRC for registration, paving the way for the IPO to take place in the coming weeks and possibly as early as next month.

During Daqo’s Q1 2021 results disclosure last month, the firm’s chief executive Longgen Zhang told analysts that while it could not guarantee a timetable, it was Daqo’s intent to list in early July this year. The registration process is due to be completed within 20 working days after receipt of the documents by the CSRC.

Zhang added that processing of the listing could take around one month, allowing Daqo to feasibly list in July.

But Zhang would not be drawn onto the prospective valuation of Xinjiang Daqo given recent fluctuations in the market.

As part of the listing process, Daqo has revealed its Q2 2021 financial forecasts, placing quarterly revenue in the RMB2.46 – 2.51 billion (US$385 – 393 million) range and forecasted net profit to be between RMB1.3 – 1.33 billion (US$203 – 208 million).

By means of comparison, Daqo’s revenue in the first quarter came in at US$256.1 million, with the polysilicon provider hinting that soaring average selling prices of polysilicon would start to be felt in the company’s top and bottom lines from the next reporting period. Should Daqo’s Q2 revenue reach the top end of that forecast it would be representative of a 53% sequential increase.

Last week the average spot market price for mono-grade polysilicon breached the RMB200 barrier, exacerbating price spikes witnessed since the start of the year. Since late February 2021 when China’s market largely reopened following the Spring Festival, average prices have more than doubled.

11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

January 27, 2025
REC Silicon has secured a US$40 million term loan from Hanwha International LLC, a subsidiary of Korean conglomerate and REC majority shareholder, Hanwha Solutions.
January 20, 2025
Preliminary financial results from three Chinese manufacturers show a downward trend across the solar manufacturing industry over 2024.
January 15, 2025
As of today, "goods produced by the named 37 entities will be prohibited from entering the United States," the government said.
January 13, 2025
China is reviewing the expiry of decade-old anti-dumping measures on US and South Korean polysilicon imports.
January 10, 2025
The US Department of Commerce (DoC) has awarded polysilicon producer Hemlock Semiconductor up to US$325 million in direct funding.
January 2, 2025
The company claimed that its US offtake customer, Hanwha Qcells, “Is not able to wait any longer for delivery of product".

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 19, 2025
Tokyo, Japan
Solar Media Events
March 11, 2025
Frankfurt, Germany
Solar Media Events
March 18, 2025
Sydney, Australia