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

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • 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

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

August 29, 2025
Chinese module maker JA Solar has launched DesertBlue, a PV module designed for desert and semi-arid regions. 
Premium
August 28, 2025
US solar companies could potentially pay “tens of billions” of dollars in retroactive duties on products imported from Southeast Asia between June 2022 and June 2024, following a decision from the US Court of International Trade (CIT).
August 28, 2025
JinkoSolar has sold 41.8GW of PV modules in the first half of the year, despite growing financial losses for its manufacturing subsidiary.
August 28, 2025
Another high-level inter-departmental symposium on the PV industry was held in Beijing last week, which focused on four key areas including low-prices.
August 28, 2025
Venture capital firm Pacific Channel has launched Fund V, which targets 10GW of solar, wind, and energy storage in New Zealand.
August 26, 2025
ABO Energy has closed its first syndicated loan agreement worth €240 million (US$279.8 million) to develop and construct more wind, solar and storage project.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines