Daqo posts losses of US$81.5 million in Q1 as polysilicon production and sales continue to fall

Facebook
Twitter
LinkedIn
Reddit
Email
A Daqo New Energy facility.
Daqo sold 28,008 metric tonnes of polysilicon in the first quarter of 2025, marking the seventh consecutive quarter that polysilicon sales have fallen quarter-on-quarter. Image: Daqo New Energy.

Chinese polysilicon manufacturer Daqo New Energy has posted gross losses of US$81.5 million, and a gross margin of -65.8% in the first quarter of 2025, a decline in both metrics from the previous quarter.

In the final quarter of 2024, the company posted losses of US$65.3 million and a gross margin of -33.4%. Compared to the figures for the first quarter of 2025, the latest figures are even more striking; from the first quarter of 2024 to the first quarter of 2025, the company’s gross profits of US$72.1 million turned into losses, and its gross margin of 17.4% turned negative.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Much of these poor financial performances stem from a decline in both volumes and price of polysilicon sales. The company sold 28,008 metric tonnes of polysilicon in the first quarter of 2025, marking the seventh consecutive quarter that polysilicon sales have fallen quarter-on-quarter.

However, while the company’s polysilicon production has fallen considerably over the last 12 months, as shown in the graph below, the first quarter of this year marks the second consecutive quarter that sales have outpaced production, which the company’s leadership highlighted as a success.

“On the operational front, the company operated at a reduced utilisation rate of approximately 33% of our nameplate capacity in response to challenging market conditions and weak selling prices, “said Daqo CEO Xiang Xu. “However, sales volume reached 28,008 metric tonnes, exceeding production and enabling us to reduce inventory to a healthier level.”

“During the first quarter, polysilicon producers implemented self-discipline measures to mitigate the impact of irrational competition amid falling prices, resulting in an industry-wide capacity utilisation of approximately 50%,” explained Xu. “According to industry data, domestic polysilicon production volume came in at 105,500 metric tonnes in March and below 100,000 metric tonnes for both January and February. Consequently, supply in the first quarter fell short of demand, gradually reducing industry inventory levels.”

Tackling oversupply

The cutting of production capacity is Daqo’s response to the longstanding oversupply issue facing the global solar sector, that had significantly diminished interest in products such as those that use polysilicon.

The company has consistently slashed polysilicon prices, too, from an average selling price of US$5.66/kg in 2024 to US$4.37kg in the first quarter of 2025, as it looks to sell more products, a move that will also make it harder for the company to return to making a profit. Daqo’s revenues have been cut by more than two-thirds in the last year, from US$415.3 million in the first quarter of 2024 to US$123.9 million in the first quarter of 2025.

Looking ahead, Daqo expects its end-of-year polysilicon production volumes to range from 110,000 metric tonnes to 140,000 metric tonnes, a significant decline from the 205,068 metric tonnes produced in 2024. Part of this forecast stems from the company’s recent spiralling costs of production, which have affected how much polysilicon it is able to produce without losing money; between the fourth quarter of 2024 and the first quarter of 2025, Daqo New Energy’s average polysilicon total production cost increased from US$6.81/kg to US$7.57/kg.

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.
10 March 2026
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

October 7, 2025
Solar PV will account for almost 80% of the 4.6TW of new renewable power expected to be added by 2030, according to the International Energy Agency (IEA).
October 7, 2025
OpenSolar has secured US$13.1 million in equity financing from technology investors, including Titanium Ventures, Google and others.
October 7, 2025
Doral Renewables has secured a PPA with an unnamed 'corporate buyer' for its 430MW Cold Creek solar-plus-storage project in Texas.
October 6, 2025
Indian infrastructure company focused on rooftop and ground-based solar power installations, PVV Infra has secured solar power orders worth INR7.9 billion (US$90 million) through two of its subsidiaries. 
October 6, 2025
US utility AES Corporation is reportedly in discussions to be acquired by Global Infrastructure Partners (GIP), a subsidiary of global asset owning giant BlackRock.
October 6, 2025
Indian solar developer ACME Group has established a new subsidiary to manage its renewable equipment manufacturing business, under which it is planning to scale production of TOPCon PV modules.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA
Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland