April 27, 2023

Q1 2023 Results Presentation

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates,” “guidance” and similar statements. Among other things, the outlook for
the second quarter and the full year of 2023 and quotations from management in these announcements,
as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The
Company may also make written or oral forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and
other written materials and in oral statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking statements involve inherent risks and
uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond
the Company’s control. A number of factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not limited to the following: the demand for
photovoltaic products and the development of photovoltaic technologies; global supply and demand for
polysilicon; alternative technologies in cell manufacturing; the Company’s ability to significantly expand
its polysilicon production capacity and output; the reduction in or elimination of government subsidies
and economic incentives for solar energy applications; the Company’s ability to lower its production
costs; changes in political and regulatory environment; and the duration of COVID-19 outbreaks in
China and many other countries and the impact of the outbreaks and the quarantines and travel
restrictions instituted by relevant governments on economic and market conditions, including potentially
weaker global demand for solar PV installations that could adversely affect the Company’s business and
financial performance. Further information regarding these and other risks is included in the reports or
documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission.
All information provided in this press release is as of the date hereof, and the Company undertakes no
duty to update such information or any forward-looking statement, except as required under applicable
law.
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“A leading manufacturer of high-purity polysilicon for
the global solar PV industry”

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Management remarks I

Mr. Longgen Zhang, CEO of Daqo New Energy, commented, “Mr. Longgen Zhang, CEO of Daqo New Energy, commented,
“Efficient operation of our polysilicon facilities in the first quarter of 2023 resulted in a production volume of 33,848 MT. Our
production cost decreased by 5.5% in RMB terms primarily due to a reduction in the procurement cost of metallurgical-
grade silicon powder. For the quarter, we generated $490 million in EBITDA with strong operating cash flow and
maintained a healthy balance sheet. Our cash balance further improved to $4.1 billion and our combined cash and bank
note receivable balance reached $4.9 billion.”

“In April, we completed the construction of our Phase 5A 100,000 MT polysilicon project in Inner Mongolia and successfully
started initial production of polysilicon. We expect to ramp up production to full capacity by the end of June 2023, bringing
our total polysilicon nameplate capacity to 205,000 MT per annum. Therefore, we expect total production volume to be
approximately 44,000~46,000 MT of polysilicon in Q2 2023, an increase of 30% to 36% as compared to Q1 2023 and
approximately 193,000~198,000 MT of polysilicon in the full year of 2023, an increase of 44% to 48% as compared to
2022. In addition, based on the latest project schedule, our new semiconductor-grade polysilicon project with 1,000 MT
annual capacity is expected to be completed and start pilot production by the end of September 2023. With its new fully
digitalized and highly automated production system, we believe our Phase 5A Inner Mongolia project will bring the
Company to a new level in terms of the overall competitiveness including its production capacity, low cost structure and
superior product quality.”

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“Polysilicon demand was weak in January due to the seasonal slowdown in the solar PV industry. In February, lower module
prices stimulated end-market demand causing a meaningful recovery in demand and price improvement across the solar value
chain. In March and April, polysilicon ASPs declined gradually due to increased polysilicon supplies and constrained short-term
demand from wafer manufacturers caused by the limited supply of high-purity quartz used in the silicon-ingot production process.
Despite the ASP decline in the quarter, in our major operational subsidiary Xinjiang Daqo, we still achieved very strong gross
margin of 71.4% and robust net income after tax per unit of polysilicon sold of approximately RMB115/kg, which we believe is
significantly higher than those for many of our competitors and reflect our outstanding quality and cost structure. Recently, we
have seen a clear trend that the ASP gap between high quality and low quality polysilicon has started to enlarge and the demand
for high quality N-type products is increasing. We expect that this trend will enable us to differentiate ourselves from our
competitors based on our high quality and low cost polysilicon ready for the next-generation N-type technology. We believe that
the overall demand for solar PV will continue to grow in the coming quarters and that the continued capacity expansions by
downstream manufacturers will lead to further increases in polysilicon demand. In the second quarter of 2023, our Phase 5A
project will start to contribute a meaningful output of approximately 10,000MT to 12,000MT of polysilicon. We plan to reduce our
inventory to approximately 5,000MT by the end of the second quarter. To achieve this , we will need to increase our shipment to
59,000MT to 61,000MT MT in Q2, an increase of 133% to 141% as compared to Q1.”
“In November 2022, our board of directors approved a US$700 million share repurchase program, effective until December 31,
2023. As of now, we have already spent US$85.1 million and repurchased approximately 1.688 million ADSs. On April 6, 2023,
our subsidiary Xinjiang Daqo’s cash dividend plan for 2022 was approved by its shareholders’ meeting. Therefore, as a 72.7%
shareholder of Xinjiang Daqo, we expect Daqo New Energy to receive the dividend distribution in May with an amount of
approximately RMB4.96 billion (after tax), which could be the financial source to implement the approved share repurchase plan.”
“We believe a new era for Solar PV has just begun. The continuous cost reduction in solar PV products is expected to create
substantial additional green energy demand likely exceeding most analysts’ expectations. It is generally expected that solar PV
will eventually become one of the most important energies to power the world. In addition, as solar PV technology keeps evolving,
we believe that the increasing needs for polysilicon of very high purity will help differentiate us from our competitors thanks to our
ability to produce the type of polysilicon required for the next generation of N-type technology. We will continue to maintain solid
growth and make sure to have one of the best balance sheets in the industry in order to capture the long-term benefits of the
global solar PV market.” 4
Operational and financial highlights in Q1 2023
• Polysilicon production volume was 33,848 MT in Q1 2023, compared to 33,702 MT in Q4 2022
• Polysilicon sales volume was 25,284 MT in Q1 2023, compared to 23,400 MT in Q4 2022
• Polysilicon average total production cost(1) was $7.55/kg in Q1 2023, compared to $7.69/kg in Q4 2022
• Polysilicon average cash cost(1) was $6.61/kg in Q1 2023, compared to $6.78/kg in Q4 2022
• Polysilicon average selling price (ASP) was $27.83/kg in Q1 2023, compared to $37.41/kg in Q4 2022
• Revenue was $709.8 million in Q1 2023, compared to $864.3 million in Q4 2022
• Gross profit was $506.7 million in Q1 2023, compared to $668.9 million in Q4 2022. Gross margin was 71.4% in Q1
2023, compared to 77.4% in Q4 2022
• Net income attributable to Daqo New Energy Corp. shareholders was $278.8 million in Q1 2023, compared to $332.7
million in Q4 2022
• Earnings per basic American Depositary Share (ADS)(3) was $3.56 in Q1 2023, compared to $4.26 in Q4 2022
• Adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $310.2 million in Q1
2023, compared to $363.1 million in Q4 2022
• Adjusted earnings per basic ADS(3) (non-GAAP)(2) was $3.96 in Q1 2023, compared to $4.65 in Q4 2022
• EBITDA (non-GAAP)(2) was $490.2 million in Q1 2023, compared to $648.5 million in Q4 2022. EBITDA margin (non-
GAAP)(2) was 69.1% in Q1 2023, compared to 75.0% in Q4 2022

Notes:
1. Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable costs relating to
production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable costs relating to production
of polysilicon excluding depreciation expense, divided by the production volume in the period indicated.
2. Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings
per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For more information on these non-GAAP
financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliation of non-GAAP
financial measures to comparable US GAAP measures" set forth at the end of this press release.
3. ADS means American Depositary Share. One (1) ADS representing five (5) ordinary shares.

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Polysilicon facilities update
Q1 2023 key facts Outlook
▪ Quarterly production volume: 33,848 MT ▪ Expected production volume in Q2 2023:
▪ Sales volume: 25,284 MT 44,000 ~ 46,000 MT
▪ Average selling prices: $27.83/kg ▪ Expected production volume in the full year of 2023:
▪ Average total production cost: $7.55/kg 193,000 ~ 198,000 MT
▪ Average cash cost: $6.61/kg

Polysilicon historical and projected capacity in Daqo’s facilities * (MT)

Phase 5A
205,000

Phase 4B

Phase 4A 105,000 MT
Capacity
debottlenecking
70,000 MT
Phase 3A Phase 3B
Phase 2B
Phase 2A capacity
30,000 MT 35,000 MT
enhancement
Phase 2A
12,150 MT 18,000
5,000 6,150

Q1 2013 Q1 2014 Q3 2015 Q1 2017 Q4 2018 Q2 2019 Q4 2019 Q1 2022 Q2 2023

Fully ramped up production date

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 Polysilicon manufacturing overview
Production Volume (MT)
35,326
33,401 33,702 33,848
31,383

23,616
21,684
21,008 20,185 21,102
19,777
18,097 18,406
16,204

9,437
8,764
7,301 7,150
5,657 5,659
4,734

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021 2022 2023

Cash cost and Depreciation ($/kg)*

Cash cost Depreciation

14.11

0.79
9.19 10.09
9.05 8.94 8.12
7.94 7.42 0.90 7.26 6.82 7.69 7.51
6.97 6.38 6.29 6.31 6.84
1.66 1.62 1.82 1.30 5.86 5.79 5.82 5.92
1.22 1.47 13.32 0.75 0.91 0.94
1.12 0.91 0.90 0.88 0.76
0.85 0.92 0.94 0.88 0.92
9.19
7.53 7.43 7.12 6.64 6.20 6.65 6.51 6.78 6.61
5.85 5.47 5.01 4.87 4.88 5.04 5.37 5.41 5.96 6.06

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021 2022 2023
* The cash cost and depreciation only refer to the polysilicon production in Xinjiang facilities.
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 Quarterly polysilicon sales volume and ASPs

Polysilicon external sales volume and ASPs

Polysilicon external sales volume (MT) ASP ($/kg)

50,000
$37.41
$36.44
$33.91 $35.00
45,000 $32.76
$33.08

40,000 38,839
37,545 $30.00

$27.55 $27.83
35,000 33,126
$25.00

30,000
$20.81 25,284 $20.00
25,000 $17.68 23,186 23,400
21,471 21,060 21,183
$16.22
20,000 19,101 18,881
$15.00

$10.79 $11.90
15,000 $9.69 13,291 13,643 $10.79
$9.55 $8.99 $8.77 11,642 $10.00
$9.10 $9.13
$8.79
10,000 8,450 9,238
$7.04
7,030 7,130
6,199
5,411 $5.00
5,000 3,881

0 $0.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021 2022 2023

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Income statement summary

Q1 2023 Q4 2022 Q1 2022

($ in millions, unless otherwise stated)
Revenues 709.8 864.3 1,280.3

Gross profit 506.7 668.9 813.6

Gross margin 71.4% 77.4% 63.5%

SG&A （41.3） (44.0) (15.5)

R&D expense （1.9） (2.7) (2.1)

Income from operations 463.8 623.1 796.9

Net income attributable to

278.8 332.7 535.8
Daqo New Energy shareholders
Earnings per basic ADS ($ per ADS) 3.56 4.26 7.17
Adjusted net income (non-GAAP) attributable
310.2 363.1 538.2
to Daqo New Energy Corp. shareholders
Adjusted earnings per basic ADS (non-GAAP) ($
3.96 4.65 7.20
per ADS)

EBITDA 490.2 648.5 826.8

EBITDA margin 69.1% 75.0% 64.6%

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Balance sheet summary

As of As of As of
($ in millions) 3/31/2023 12/31/2022 3/31/2022

Cash, cash equivalent and restricted cash 4,130.5 3,520.4 1,127.7

Note receivables 791.3 1,131.6 1,499.4

Short-term investments 5.8 13.9 10.4

Inventories 191.7 169.5 100.3

Prepaid land use rights 80.2 80.3 40.6

Property, plant and equipment, net 2,884.7 2,605.2 1,619.2

Total assets 8,190.2 7,593.0 4,412.9

Advances from customers - short term portion 184.9 122.0 466.0

Advance from customers - long term portion 160.3 153.2 99.4

Payables for purchases of property, plant and equipment 266.2 230.4 104.2

Total liabilities 1,207.0 989.5 1,072.7

Total equity 6,983.3 6,644.7 3,340.2

Total liabilities and equity 8,190.2 7,594.0 4,412.9

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Cash flow summary
3 months ended 3 months ended
($ in millions) 3/31/2023 3/31/2022

Net income 394.7 667.1

Adjustments to reconcile net income to net cash provided by operating

65.2 31.8
activities

Changes in operating assets and liabilities 347.1 (467.5)

Net cash provided by operating activities 807.0 231.3

Net cash (used in) / provided by investing activities (268.9) 170.4

Net cash provided by financing activities 59.9 -

Effect of exchange rate changes 12.2 2.0

Net increase in cash, cash equivalents and restricted cash 610.2 403.8

Cash, cash equivalents and restricted cash at the beginning of the period 3,520.4 724.0

Cash, cash equivalents and restricted cash at the end of the period 4,130.5 1,127.7

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Non-GAAP reconciliation
$ in thousands 3 months Ended
Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022

Net income 394,695 486,292 667,051

Income tax expense 81,067 148,675 129,908
Interest income(expense), net (11,947) (12,030) 1,468
Depreciation & Amortization 26,399 25,585 28,359
EBITDA (non-GAAP) 490,214 648,522 826,786
EBITDA margin (non-GAAP) 69.1% 75.0% 64.6%

$ in thousands 3 months Ended

Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022

Net income attributable to Daqo New Energy Corp.

278,804 332,733 535,843
shareholders
Share-based compensation 31,401 30,376 2,357
Adjusted net income (non-GAAP) attributable to
310,205 363,109 538,200
Daqo New Energy Corp. shareholders
Adjusted earnings per basic ADS* (non-GAAP) 3.96 4.65 7.20
Adjusted earnings per diluted ADS* (non-GAAP) 3.93 4.60 7.02

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Use of Non-GAAP financial measures
To supplement Daqo New Energy’s consolidated financial results presented in accordance with United
States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP
financial measures that are adjusted for certain items from the most directly comparable GAAP
measures including earnings before interest, taxes, depreciation and amortization ("EBITDA") and
EBITDA margin (which represents the proportion of EBITDA in revenues). Our management believes
that each of these non-GAAP measures is useful to investors, enabling them to better assess changes
in key element of the Company's results of operations across different reporting periods on a
consistent basis, independent of certain items as described below. Thus, our management believes
that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures
provide investors with meaningful supplemental information to assess the Company's operating results
in a manner that is focused on its ongoing, core operating performance. Our management uses these
non-GAAP measures internally to assess the business, its financial performance, current and historical
results, as well as for strategic decision-making and forecasting future results. Given our
management's use of these non-GAAP measures, the Company believes these measures are
important to investors in understanding the Company's operating results as seen through the eyes of
our management. These non-GAAP measures are not prepared in accordance with US GAAP or
intended to be considered in isolation or as a substitute for the financial information prepared and
presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with
the US GAAP measures, and may be different from non-GAAP measures used by other companies.

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谢谢！
Thank you

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