On February 27, Daqo Energy (688303.SH) announced that Cayman Daqo's polysilicon output in the fourth quarter of 2024 was 34,236 tons; Sales volume was 42,191 tons. Operating income was $195 million, compared to $198 million in the third quarter. Net loss attributable to shareholders of Daqo New Energy was $180 million.

Cayman Daqo's polysilicon production in 2024 will be 205,068 tons; Sales volume was 181,362 tons. Operating income was $1.029 billion, and net loss attributable to shareholders of Daqo New Energy was $345 million.

Cayman Daqo's net cash flow used in operating activities in 2024 was US$438 million, net cash flow used in investing activities was US$1,478 million and net cash flow used in financing activities was US$470 million. Under U.S. GAAP, endorsements of notes receivable are treated as cash transactions and are presented as total cash inflows and outflows; In addition, cash flows from discounting all types of notes receivable are included in cash flow from operating activities.

In 2024, Cayman Daqo will face a challenging market environment, with overcapacity in the industry leading to a sharp decline in prices across the entire industrial chain. In the fourth quarter, Cayman Group continued to operate at a low capacity utilisation rate of 40%-50%, reducing cash burn to meet market challenges. Despite this, Cayman Daqo's annual polysilicon production in 2024 still achieved the expected target of 205,068 tons, a year-on-year increase of 3.7%. In addition, the proportion of N-type products will increase significantly from 40% in 2023 to 70% in 2024. Affected by the decline in the average selling price of polysilicon, Cayman Daqo made a provision for inventory decline and a long-term asset impairment loss on the old polysilicon production line in the fourth quarter. Despite the losses, Cayman Daqo maintained a strong balance sheet and strong cash reserves. This solid financial position ensures that Cayman Group is well positioned to navigate the market downturn and maintain strategic resilience.

Cayman Daqo expects polysilicon production of 25,000-28,000 tonnes in the first quarter of 2025. Considering the impact of annual production line maintenance, it is estimated that the annual polysilicon output in 2025 will be 110,000-140,000 tons.