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Daqo New Energy Announces Unaudited First Quarter 2021 Results May 18 , 2021 Shanghai , China - May 18 , 2021 - Daqo New Energy Corp. ( NYSE : DQ ) ( " Daqo New Energy " , the " Company " or " we " ) , a leading manufacturer of high - purity polysilicon for the global solar PV industry , today announced its unaudited financial results for the first quarter of 2021 . First Quarter 2021 Financial and Operating Highlights Polysilicon production volume was 20,185 MT in Q1 2021 , compared to 21,008 MT in Q4 2020 • Polysilicon sales volume was 21,471 MT in Q1 2021 , compared to 23 , 186 MT in Q4 2020 • Polysilicon average total production cost ( 1 ) was $ 6.29 / kg in Q1 2021 , compared to $ 5.92 / kg in Q4 2020 • Polysilicon average cash cost ( 1 ) was $ 5.37 / kg in Q1 2021 , compared to $ 5.04 / kg in Q4 2020 ⚫ Polysilicon average selling price ( ASP ) was $ 11.90 / kg in Q1 2021 , compared to $ 10.79 / kg in Q4 2020 • Revenue was $ 256.1 million in Q1 2021 , compared to $ 247.7 million in Q4 2020 ⚫ Gross profit was $ 118.9 million in Q1 2021 , compared to $ 109.5 million in Q4 2020. Gross margin was 46.4 % in Q1 2021 , compared to 44.2 % in Q4 2020 • Net income attributable to Daqo New Energy Corp. shareholders was $ 83.2 million in Q1 2021 , compared to $ 72.8 million in Q4 2020 • Earnings per basic American Depositary Share ( ADS ) ( 3 ) was $ 1.13 in Q1 2021 , compared to $ 1.01 in Q4 2020 ⚫ EBITDA ( non - GAAP ) ( 2 ) was $ 128.1 million in Q1 2021 , compared to $ 115.1 million in Q4 2020. EBITDA margin ( non - GAAP ) ( 2 ) was 50.0 % in Q1 2021 , compared to 46.5 % in Q4 2020 • Adjusted net income ( non - GAAP ) ( 2 ) attributable to Daqo New Energy Corp. shareholders was $ 86.2 million in Q1 2021 , compared to $ 77.3 million in Q4 2020 • Adjusted earnings per basic ADS ( 3 ) ( non - GAAP ) ( 2 ) was $ 1.18 in Q1 2021 , compared to $ 1.07 in Q4 2020 Three months ended US $ millions except as indicated otherwise Revenues Gross profit Gross margin Mar 31 , 2021 Dec 31 , 2020 Mar 31 , 2020 256.1 247.7 168.8 118.9 109.5 56.6 46.4 % 44.2 % 33.5 % Income from operations 109.2 98.0 45.8 Net income attributable to Daqo New Energy Corp. shareholders 83.2 72.8 33.2 Earnings per basic ADS ( 3 ) ( $ per ADS ) 1.13 1.01 0.47 Adjusted net income ( non - GAAP ) ( 2 ) attributable to Daqo 86.2 77.3 37.7 New Energy Corp. shareholders Adjusted earnings per basic ADS ( 3 ) ( non - GAAP ) ( 2 ) ( $ 1.18 1.07 0.54 per ADS ) EBITDA ( non - GAAP ) ( 2 ) 128.1 115.1 63.1 EBITDA margin ( non - GAAP ) ( 2 ) 50.0 % 46.5 % 37.4 % Polysilicon sales volume ( MT ) 21,471 23,186 19,101 Polysilicon average total production cost ( $ / kg ) ( 1 ) 6.29 5.92 5.86 Polysilicon average cash cost ( excl . dep'n ) ( $ / kg ) ( 1 ) 5.37 5.04 5.01 Notes : ( 1 ) Production cost and cash cost only refer to production in our polysilicon facilities in Xinjiang . Production cost is calculated by the inventoriable costs relating to production of polysilicon in Xinjiang 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 ) Dago 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 . On November 17 , 2020 , the Company effected a change of the ratio of its ADSs to ordinary shares from one ( 1 ) ADS representing twenty - five ( 25 ) ordinary shares to one ( 1 ) ADS representing five ( 5 ) ordinary shares . The earnings per ADS and number of ADS information has been retrospectively adjusted to reflect the change for all periods presented . Management Remarks Mr. Longgen Zhang , CEO of Daqo New Energy , commented , " During the quarter , we continued to see strong momentum in customer demand for high - purity polysilicon , which led to a significant shortage of polysilicon and higher polysilicon ASPs . Our ASP in the first