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October 27 2026 Q3 2026 Results Presentation
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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 fourth quarter and the full year of 2026 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; and changes in political and regulatory environment. 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. 2
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3 “A leading manufacturer of high-purity polysilicon for the global solar PV industry”
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Management Remarks 4 Mr. Xiang Xu, Chairman and CEO of the Company, commented, "Supported by continued anti-involution policies, including price enforcement, the polysilicon sector bottomed out and rebounded in Q3, with polysilicon prices gradually recovering towards cost levels. However, downstream players continued to hold polysilicon inventories and largely limited their purchases to immediate operational needs, keeping overall sector trading volumes low. Against this backdrop, we delivered a substantial increase in Q3 shipment volumes, driving strong sequential revenue growth and narrowing losses. Our financial position remained sound, with a robust balance sheet and zero debt throughout the period. As of September 30, 2026, we held cash, cash equivalents and restricted cash of $546.5 million, short-term investments of $267.3 million, bank notes receivable of $161.5 million, held-to-maturity investments of $51.6 million, and a fixed term bank deposit balance of $1.0 billion. Together, these readily convertible assets totaled $2.06 billion, up from $1.92 billion at the end of Q2, providing a strong financial foundation and strategic flexibility to navigate the current market environment." "Operationally, our nameplate capacity utilization rate was approximately 70% during the period. Total production volume at our two polysilicon facilities was 53,469 MT, exceeding our guidance range of 40,000 MT to 45,000 MT. Sales volume rose sharply from 15,190 MT in Q2 to 46,910 MT in Q3, following our shift in June from a wait-and-see stance to a more market-oriented sales and pricing strategy. We believe this increase also reflects greater customer confidence in our product quality and continued preference for our products. Our average selling price increased by 2.0% sequentially to $4.12/kg, although the increase lagged the broader market recovery because Q3 shipments fulfilled orders signed before late July. On the cost side, average total production cost and average cash cost fell by 9.7% and 7.4% sequentially, respectively, reaching new record lows of $5.37/kg and $4.23/kg, respectively, reflecting our continued improvements in manufacturing efficiency and cost control." "In light of the current market dynamics, we expect total polysilicon production volume in Q4 2026 to be approximately 35,000 MT to 45,000 MT. For the full year of 2026, we expect production volume to be in the range of 175,000 MT to 185,000 MT."
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5 Management Remarks – Continued"Anti-involution efforts across the solar PV sector continued during Q3. The State Administration for Market Regulation (SAMR) released price compliance guidance targeting the solar PV sector on July 31, followed in August by an industry initiative against below- cost sales that we co-signed. Against this backdrop, polysilicon manufacturers halted below-cost sales, and N-type polysilicon prices rebounded from a trough of RMB 30.5-33/kg in Q2 to approximately RMB 40-43/kg by the end of Q3. On September 3, the National Development and Reform Commission (NDRC) and the SAMR jointly issued the Notice on Matters Concerning Cost Accounting for Low-Price Disordered Competition in Key Industrial Products, establishing a firmer regulatory basis for polysilicon pricing. Despite these policy tailwinds, elevated industry inventories and weak near-term demand continue to make the operating environment challenging. In response, we are taking a disciplined approach and evaluating a reduction in our near-term utilization rate to better align our production with market demand and support the orderly destocking of polysilicon inventories. This approach is consistent with our commitment to the long-term, healthy development of the solar industry." "We are also diversifying beyond our core polysilicon business to reduce our exposure to solar PV cyclicality by targeting the fast- growing AI data center (AIDC) power infrastructure market. On June 3, 2026, we announced an investment agreement to establish a manufacturing base for the R&D, manufacturing, and sale of next-generation energy solutions and related equipment for AIDCs, including energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the AIDC industry's transition to high-voltage direct current architecture, such as the 800V DC standard advanced by Nvidia and other leading AI infrastructure providers. The platform is anchored by Daqo Group, an affiliated entity under common beneficial ownership with Daqo New Energy Corp., which brings over 40 years of power equipment manufacturing expertise, established technology, experienced talent, and deep customer relationships to help accelerate our entry into this segment. We view AIDC power infrastructure as a structural growth opportunity that complements our core business and has the potential to broaden our earnings base. Drawing on our track record of navigating multiple polysilicon cycles, we intend to pursue this expansion in a disciplined manner while preserving our balance sheet strength."
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6 Management Remarks – Continued (2) "Despite the challenging market environment, the solar PV industry retains compelling long-term growth prospects. Growing vulnerabilities in global energy markets have heightened concerns about national energy security, underscoring the important role that solar PV and other renewable energy sources can play. As one of the world's lowest-cost producers of high-quality N-type polysilicon, supported by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated broader market recovery and long-term growth opportunities. We will continue to sharpen our competitive edge by advancing high-efficiency N-type technology and using digital transformation and AI adoption to optimize costs. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in that transition."
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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. Operational and Financial Highlights in Q3 2026 7 •Aggregate of cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed term bank deposit balance was $2.06 billion at the end of Q3 2026, compared to $1.92 billion at the end of Q2 2026 •Polysilicon production volume was 53,469 MT in Q3 2026, compared to 43,675 MT in Q2 2026 •Polysilicon sales volume was 46,910 MT in Q3 2026, compared to 15,190 MT in Q2 2026 •Polysilicon average total production cost(1) was $5.37/kg in Q3 2026, compared to $5.95/kg in Q2 2026 •Polysilicon average cash cost(1) was $4.23/kg in Q3 2026, compared to $4.57/kg in Q2 2026 •Polysilicon average selling price (ASP) was $4.12/kg in Q3 2026, compared to $4.04/kg in Q2 2026 •Revenue was $194.2 million in Q3 2026, compared to $62.7 million in Q2 2026 •Gross loss was $60.6 million in Q3 2026, compared to $82.7 million in Q2 2026. Gross margin was negative 31.2% in Q3 2026, compared tonegative 132.0% in Q2 2026 •Net loss attributable to Daqo New Energy Corp. shareholders was $52.9 million in Q3 2026, compared to $81.2 million in Q2 2026 •Loss per basic American Depositary Share (ADS)(3) was $0.78 in Q3 2026, compared to $1.20 in Q2 2026 •Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $52.9 million in Q3 2026, compared to $81.2 million in Q2 2026 •Adjusted loss per basic ADS(3) (non-GAAP)(2) was $0.78 in Q3 2026, compared to $1.20 in Q2 2026 •EBITDA (non-GAAP)(2) was negatvie $9.2million in Q3 2026, compared to negatvie $29.3million in Q2 2026. EBITDA margin (non-GAAP)(2) was negative 4.7% in Q3 2026, compared to negative 46.8% in Q2 2026
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Polysilicon Facilities Update Q1 2013Q1 2014Q3 2015Q1 2017Q4 2018Q2 2019Q4 2019Q1 2022 Q2 2023Q3 2024 305 000 205 000 105 000 305 000 205 000 70 000 35 000 30 000 18 000 12 150 6 150 5 000 Phase 4B Phase 2A Phase 2B Phase 2A capacity enhancement Phase 3A Phase 3B Capacity debottlenecking Phase 4A 105,000 MT Phase 5A Phase 5B ▪Quarterly production volume: 53,469 MT ▪Sales volume: 46,910 MT ▪Average selling prices: $4.12/kg ▪Average total production cost: $5.37/kg ▪Average cash cost: $4.23/kg Polysilicon Nameplate Capacity in Daqo’s Facilities (MT) ▪Expected production volume in Q4 2026: 35,000 ~ 45,000 MT ▪Expected production volume in the full year of 2026: 175,000 ~ 185,000 MT Fully ramped up production date Q3 2026 Key Figures Outlook 8
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Polysilicon Manufacturing Overview Production Volume (MT) Cash Cost and Depreciation ($/kg)* 9 Q1 2021Q2 Q3 Q4 Q1 2022Q2 Q3 Q4 Q1 2023Q2 Q3 Q4 Q1 2024Q2 Q3 Q4 Q1 2025Q2 Q3 Q4Q1 2026Q2 Q3 53 469 43 675 43 402 42 181 30 650 26 012 24 810 34 236 43 592 64 961 62 278 61 014 57 664 45 306 33 848 33 702 33 401 35 326 31 383 23 616 21 684 21 102 20 185 Q1 2021Q2 Q3 Q4Q1 2022 Q2 Q3 Q4Q1 2023Q2 Q3 Q4Q1 2024Q2 Q3 Q4Q1 2025Q2 Q3 Q4Q1 2026Q2 Q3 5,37 US$ 5,95 US$ 5,95 US$ 5,83 US$ 6,38 US$ 7,26 US$ 7,57 US$ 6,81 US$ 6,61 US$ 6,19 US$ 6,37 US$ 6,50 US$ 6,52 US$ 6,92 US$ 7,55 US$ 7,69 US$ 6,82 US$ 7,26 US$ 10,09 US$ 14,11 US$ 6,84 US$ 6,31 US$ 6,29 US$ 1,14 US$ 1,38 US$ 1,36 US$ 1,37 US$ 1,84 US$ 2,14 US$ 2,26 US$ 1,77 US$ 1,27 US$ 0,80 US$ 0,76 US$ 0,78 US$ 0,85 US$ 0,87 US$ 0,94 US$ 0,91 US$ 0,76 US$ 0,75 US$ 0,90 US$ 0,79 US$ 0,88 US$ 0,90 US$ 0,92 US$ 4,23 US$ 4,57 US$ 4,59 US$ 4,46 US$ 4,54 US$ 5,12 US$ 5,31 US$ 5,04 US$ 5,34 US$ 5,39 US$ 5,61 US$ 5,72 US$ 5,67 US$ 6,05 US$ 6,61 US$ 6,78 US$ 6,06 US$ 6,51 US$ 9,19 US$ 13,32 US$ 5,96 US$ 5,41 US$ 5,37 US$ Cash Cost Depreciation Total Production Cost
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Quarterly Polysilicon Sales Volume and ASPs Polysilicon External Sales Volume 10 Polysilicon ASPs Q1 2021Q2 Q3 Q4Q1 2022Q2 Q3 Q4Q1 2023Q2 Q3 Q4Q1 2024Q2 Q3 Q4Q1 2025Q2 Q3 Q4Q1 2026Q2 Q3 46 910 15 190 4 482 38 167 42 406 18 126 28 008 42 191 42 101 43 082 53 987 59 906 63 263 51 550 25 284 23 400 33 126 37 545 38 839 11 642 21 183 21 060 21 471 Q1 2021Q2 Q3 Q4Q1 2022Q2 Q3 Q4Q1 2023Q2 Q3 Q4Q1 2024Q2 Q3 Q4Q1 2025Q2 Q3 Q4Q1 2026Q2 Q3 4,12 US$ 4,04 US$ 5,96 US$ 5,83 US$ 5,80 US$ 4,19 US$ 4,37 US$ 4,62 US$ 4,69 US$ 5,12 US$ 7,66 US$ 7,97 US$ 7,68 US$ 12,33 US$ 27,83 US$ 37,41 US$ 36,44 US$ 33,08 US$ 32,76 US$ 33,91 US$ 27,55 US$ 20,81 US$ 11,90 US$
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Income Statement Summary ($ in millions, unless otherwise stated) Q3 2026 Q2 2026 Q3 2025 Revenues 194.2 62.7 244.6 Gross profit/(loss) (60.6) (82.7) 9.7 Gross margin (31.2)% (132.0)% 3.9% SG&A (16.3) (15.8) (32.3) R&D expense (2.7) (1.6) (0.6) Loss from operations (78.6) (98.1) (20.3) Net loss attributable to Daqo New Energy shareholders (52.9) (81.2) (14.9) Loss per basic ADS ($ per ADS) (0.78) (1.20) (0.22) Adjusted net earnings/(loss) (non-GAAP) attributable to Daqo New Energy Corp. shareholders (52.9) (81.2) 3.7 Adjusted earnigns/(loss) per basic ADS (non- GAAP) ($ per ADS) (0.78) (1.20) 0.05 EBITDA (9.2) (29.3) 45.8 EBITDA margin (4.7)% (46.8)% 18.7% 11
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Balance Sheet Summary ($ in millions) As of 9/30/2026 As of 6/30/2026 As of 9/30/2025 Cash, cash equivalent and restricted cash 564.5 555.3 551.6 Accounts and notes receivables 161.6 72.0 157.0 Short-term investments 267.3 250.0 431.3 Inventories 392.1 363.5 121.4 Fixed term deposit within one year 964.9 928.9 1,034.5 Prepaid land use rights 169.0 159.1 154.2 Property, plant and equipment, net 3,376.3 3,391.3 3,409.9 Total assets 6,495.5 6,341.1 6,342.2 Advances from customers - short term portion 140.1 43.2 24.2 Advance from customers - long term portion 15.3 14.1 16.9 Payables for purchases of property, plant and equipment 216.4 233.0 312.2 Total liabilities 638.8 478.0 497.3 Total equity 5,856.8 5,863.1 5,844.9 Total liabilities and equity 6,495.5 6,341.1 6,324.2 12
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Cash Flow Summary ($ in millions) 9 months ended 9/30/2026 9 months ended 9/30/2025 Net (loss)/income (307.1) (206.2) Adjustments to reconcile net income to net cash provided by operating activities 298.4 354.9 Changes in operating assets and liabilities (206.3) (198.7) Net cash (used in)/provided by operating activities (215.0) (50.0) Net cash used in provided by investing activities (235.4) (448.9) Net cash used in provided by financing activities (7,790) (32) Effect of exchange rate changes 24.4 12.1 Net decrease in cash, cash equivalents and restricted cash (433.8) (486.8) Cash, cash equivalents and restricted cash at the beginning of the period 980.3 1,038.3 Cash, cash equivalents and restricted cash at the end of the period 546.5 551.6 13
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14 $ in thousands 3 months Ended Sep. 30, 2026 Jun. 30, 2026 Sep. 30, 2025 Net (loss)/income (73,102) (112,373) (14,844) Income tax (benefit)/expense 465 21,540 2,958 Interest income, net (951) (2,405) (2,944) Depreciation & Amortization 64,367 63,899 60,595 EBITDA (non-GAAP) (9,221) (29,339) 45,765 EBITDA margin (non-GAAP) (4.7)% (46.8)% 18.7% $ in thousands 3 months Ended Sep. 30, 2026 Jun. 30, 2026 Sep. 30, 2025 Net loss attributable to Daqo New Energy Corp. shareholders (52,852) (81,153) (14,918) Share-based compensation - - 18,605 Adjusted net (loss)/income (non-GAAP) attributable to Daqo New Energy Corp. shareholders (52,852) (81,153) 3,687 Adjusted (loss)/earnings per basic ADS* (non-GAAP) (0.78) (1.20) 0.05 Adjusted (loss)/earnings per diluted ADS* (non-GAAP) (0.78) (1.20) 0.05 Non-GAAP Reconciliation
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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. 15
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16 Thank you!