大全新能源 (DQ) 2025 Q2 法說會逐字稿

Good day and welcome to the Daqo New Energy second-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Jessie Zhao, Director of Investor Relations. Please go ahead.

大家好，歡迎參加大全新能源 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係總監 Jessie Zhao。請繼續。

Hello, everyone, I'm Jessie Zhao, the Investor Relations Director of Daqo New Energy. Thank you for joining our conference call today.

大家好，我是大全新能源投資人關係總監趙傑西。感謝您今天參加我們的電話會議。

Daqo New Energy just issued its financial results for the second quarter of 2025, which can be found on our website at www.dqsolar.com. Today, attending the conference call, we have our Chairman and CEO, Mr. Xiang Xu; our Deputy CEO, Ms. Anita Chu; our CFO, Mr. Ming Yang, and myself.

大全新能源剛發布了2025年第二季的財務業績，詳情請瀏覽我們的網站www.dqsolar.com。今天，出席電話會議的嘉賓有：董事長兼執行長徐翔先生、副執行長朱艷麗女士、財務長楊明先生以及我本人。

Today's call will begin with an update from Mr. Xu on market conditions and company operations, followed by a translation from Ms. Chu. And then, Mr. Yang will discuss the company's financial performance for the quarter. After that, we will open the floor to Q&A from the audience.

今天的電話會議將首先由徐先生介紹市場狀況和公司營運情況，然後由朱女士進行翻譯。隨後，楊總將對公司本季的財務表現進行討論。之後，我們將開放觀眾的問答環節。

Before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth, are forward-looking statements that are made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties.

在我們開始正式發言之前，我想提醒大家，今天電話會議上的某些聲明，包括預期的未來營運和財務業績以及行業增長，都是根據 1995 年美國私人安全訴訟改革法案的安全港條款做出的前瞻性聲明。這些聲明涉及固有的風險和不確定性。

A number of factors could cause actual results to differ materially from those contained in any formal statement. Further information regarding this and other risks is included in the report or documents we have filed with or furnished to the Securities and Exchange Commission.

許多因素可能導致實際結果與任何正式聲明中的結果有重大差異。有關此風險和其他風險的更多資訊包含在我們向美國證券交易委員會提交或提供的報告或文件中。

This statement only reflect our current and preliminary review as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. All information provided in today's call is as of today, and we undertake no duty to update information except as required under applicable law.

本聲明僅反映我們截至今天的當前和初步審查，可能會有所變更。我們實現這些預測的能力受到風險和不確定性的影響。今天電話會議中提供的所有資訊均截至今天為止，除非適用法律要求，否則我們不承擔更新資訊的義務。

Also during the call, we also occasionally reference monetary amounts in US dollar terms. Please keep in mind that our functional currency is the Chinese CNY. We offer these translations into US dollars solely for the convenience of the audience.

另外，在通話過程中，我們偶爾也會提及以美元計算的金額。請記住，我們的功能貨幣是人民幣。我們提供這些翻譯成美元只是為了方便觀眾。

Now, I will now turn the call to our Chairman and CEO, Mr. Xiang Xu. Mr. Xu, please go ahead.

現在，我將把電話轉給我們的董事長兼執行長徐翔先生。徐先生，請說。

(spoken in foreign language)

（用外語說）

Thank you, Mr. Xu. So hello, everyone. This is Anita, and I'll now deliver our CEO, Mr. Xu's remarks.

謝謝徐先生。大家好。我是 Anita，現在我來轉達我們執行長徐先生的演講。

So the solar TV industry faced continuous challenges in the second quarter of 2025 with market prices across the solar value chain declining due to industry overcapacity and high inventory levels remaining below cash cost levels. As a result, Daqo New Energy reported quarterly operating and net losses.

因此，太陽能電視產業在 2025 年第二季面臨持續挑戰，由於產業產能過剩和高庫存水準仍低於現金成本水平，整個太陽能價值鏈的市場價格都在下跌。因此，大全新能源報告季度營運和淨虧損。

Nevertheless, we maintain a strong and healthy balance sheet with no financial debt. As of June 30, 2025, the company had a cash balance of $599 million, short term investments of $419 million, bank notes receivables USD49 million, and total fixed term bank deposit balance of USD994 million.

儘管如此，我們的資產負債表仍然強勁健康，沒有任何財務債務。截至 2025 年 6 月 30 日，該公司的現金餘額為 5.99 億美元，短期投資為 4.19 億美元，應收銀行票據為 4,900 萬美元，定期銀行存款總額為 9.94 億美元。

In total, our financial bank deposits and investment assets, readily convertible into cash if needed, stood at USD2.06 billion, providing us with ample financial liquidity. With no financial debt, our solid financial position brings us confidence and (technical difficulty) to navigate the current market downturn and remain well positioned for long-term opportunities.

總體而言，我們的金融銀行存款和投資資產（可在需要時隨時轉換為現金）總計 20.6 億美元，為我們提供了充足的財務流動性。由於沒有金融債務，我們穩固的財務狀況給我們帶來了信心和（技術難度），使我們能夠度過當前的市場低迷，並保持對長期機會的有利地位。

On the operational front, the company operated at a reduced utilization rate of approximately 34% of its nameplate capacity and response to challenging market conditions and weak selling prices. Total production volume at our two Polysilicon facilities for the quarter was 29,012 metric tons, within our guidance range of 25,000 to 28,000 metric tons.

在營運方面，由於市場環境嚴峻和銷售價格疲軟，該公司的產能利用率降至約 34%。本季我們兩家多晶矽工廠的總產量為 29,012 公噸，在我們 25,000 至 28,000 公噸的指導範圍內。

Toward the end of the quarter, as Chinese authorities intensified efforts to curb this orderly competition, we proactively scaled back new sales orders in anticipation of future price recovery. Accordingly, our sales volume for the quarter decreased to 18,126 metric tons from 28,008 metric tons in the first quarter. Due to lower utilization across our factories, idle facility-related costs for the quarter was approximately USD1.38 per kilogram, primarily reflecting non-cash depreciation expenses.

接近季度末，隨著中國當局加強遏制這種有序競爭，我們主動縮減了新的銷售訂單，以期未來價格回升。因此，本季我們的銷售量從第一季的 28,008 公噸下降至 18,126 公噸。由於我們工廠的利用率較低，本季閒置設施相關成本約為每公斤 1.38 美元，主要反映非現金折舊費用。

On a positive note, decline in the cost of silicon metal and reduced energy consumption drove our cash costs lower by 4% to USD5.12 per kilogram, consequentially, including approximately $0.18 per kilogram related to idle facility maintenance. Overall, household unit production costs decreased by 4% sequentially to an average of USD7.26 per kilogram, with lower unit depreciation costs resulting from higher production.

從積極的一面來看，矽金屬成本的下降和能源消耗的減少使我們的現金成本降低了 4% 至每公斤 5.12 美元，其中包括與閒置設施維護相關的每公斤約 0.18 美元。整體而言，家庭單位生產成本較上月下降 4%，平均為每公斤 7.26 美元，產量提高導致單位折舊成本降低。

In light of the current market conditions, we expect our total policy on production volume in the third quarter of 2025 to be approximately 27,000 to 30,000 metric tons. As a result, we anticipate our full-year 2025 production volume to be in a range of 110,000 metric tons to 130,000 metric tons.

鑑於目前的市場狀況，我們預計 2025 年第三季的總產量政策約為 27,000 至 30,000 公噸。因此，我們預計 2025 年全年產量將在 11 萬公噸至 13 萬公噸之間。

During the second quarter, the solar PV industry remained in a cyclical trough, although proactive initiatives start to emerge towards the end of the quarter. On the demand side, China experienced a surge in installation under market-based reform policy and set a new global record with a staggering 93 gigawatts of new solar power capacity added in May. However, installation plummeted to 14 gigawatts in June, following front-loading in earlier months ahead of the May 31, 2025, cutoff date for new projects.

第二季度，太陽能光電產業仍處於週期性低谷，儘管在本季末開始出現積極舉措。需求方面，中國在市場化改革政策的推動下，5月太陽能發電裝置容量激增，達到驚人的93吉瓦，創下了全球新紀錄。然而，由於在 2025 年 5 月 31 日新專案截止日期之前，前幾個月進行了前期投入，6 月安裝量驟降至 14 吉瓦。

Polysilicon market prices trended downward during the quarter, falling from CNY39 to CNY45 per kilogram in April to CNY32 to CNY35 per kilogram by the end of June. According to industry statistics, overall industry quality production for 2025 year-to-date has been running below overall demand and consumption with monthly supply of approximately 100,000 to 110,000 metric tons. As a result, industry inventory decreased by approximately 30,000 to 40,000 tons between January and July, leaving overall industry Polysilicon inventory lower than at the beginning of the year.

本季多晶矽市場價格呈下降趨勢，從4月的每公斤39元至45元人民幣跌至6月底的每公斤32元至35元人民幣。根據行業統計數據，2025 年迄今為止，整個行業的優質產量一直低於整體需求和消費量，每月供應量約為 100,000 至 110,000 公噸。受此影響，1-7月產業庫存減少約3-4萬噸，產業整體多晶矽庫存低於年初水準。

Heading into the third quarter, Chinese authorities have demonstrated increased determination to address irrational competition and initial capacity, with the anti-involution initiative taking a lead role in sectors such as solar PV. On June 29, an article from China's official newspaper, People's Daily, highlighted the issue of oversupply and disruptive competition in the solar PV industry, calling for measures to curb vicious competition and promote high-quality development.

進入第三季度，中國政府展現了解決不合理競爭和初始產能問題的更大決心，反過密化措施在太陽能光電等領域發揮了主導作用。6月29日，中國官方報紙《人民日報》的一篇文章強調了太陽能光電產業供應過剩和破壞性競爭的問題，並呼籲採取措施遏制惡性競爭，促進高品質發展。

On June 1, President Xi emphasized the need to regulate disorderly and low-price competition and phase out our data capacity at the Central Financial and Economic Affairs Commission meeting. The following day, the Ministry of Industry and Information Technology convened a symposium with 14 solar PV companies to accelerate the industry's transition to more high-quality growth.

6月1日，習近平主席在中央財經委員會會議上強​​調，要規範無序低價競爭，逐步淘汰數據產能。隔日，工業與資訊化部召集14家光電企業召開座談會，探討推動光電產業向更高品質發展轉變。

Most recently, on July 24, government authorities released the draft amendment to the Price Law, representing a significant step towards strengthening market supervision and deterring unfair pricing practices. The draft clarifies criteria for identifying unfair pricing behavior such as low-price dumping and strengthens legal accountability for price-related violations.

最近，政府部門於7月24日公佈了《價格法》修正案草案，這是加強市場監管、遏制不公平價格行為的重要一步。草案明確了低價傾銷等不公平價格行為的認定標準，強化了價格違法行為的法律責任。

As a result, Polysilicon spot sales prices have rebounded in July and Polysilicon future prices surged significantly, supported by favorable factors such as expected higher spot quotes and simultaneous increases in downstream product prices. For reference, the 2509 contract rose sharply from a low of CNY30 per kilogram in June 2025 to a record high of CNY55 per kilogram in July 2025, the strongest level.

受此影響，受現貨報價預期走高、下游產品價格同步上漲等利多因素支撐，7月多晶矽現貨銷售價格出現反彈，多晶矽期貨價格大幅上漲。作為參考，2509合約從2025年6月每公斤30元人民幣的低點大幅上漲，到2025年7月創下每公斤55元人民幣的歷史最高價，創下最高水準。

The solar TV industry continues to show long-term prospects. In the medium term, we believe that the combined effects of the industry's self-discipline and government anti-involution will foster healthier and more sustainable industry. In the long run, as one of the most effective and sustainable energy sources globally, solar power is expected to remain a key driver of the global energy transition and sustainable development.

太陽能電視產業持續展現長期前景。從中期來看，我們相信產業自律和政府反內捲的共同作用將促進產業更健康、更永續的發展。從長遠來看，作為全球最有效和可持續的能源之一，太陽能有望繼續成為全球能源轉型和永續發展的關鍵驅動力。

Looking ahead, Daqo New Energy is well positioned to capitalize on the long-term growth in the global solar TV industry and strengthen its competitive edge by enhancing its higher efficiency N-type technology and optimizing its cost structure through digital transformation and AI adoption. As one of the world's lowest cost producers with the highest-quality N-type products, a strong balance sheet with no financial debt, we're confident in our ability to weather the current market downturn, capitalize on market recovery, and emerge as a leader in the industry positioned to capture further growth.

展望未來，大全新能源將充分利用全球太陽能電視產業的長期成長，並透過增強更高效的N型技術以及透過數位轉型和人工智慧應用優化成本結構來增強競爭優勢。作為世界上成本最低、擁有最高品質 N 型產品的生產商之一，我們擁有強勁的資產負債表且無金融債務，我們有信心能夠度過當前的市場低迷期，利用市場復甦，並成為行業領導者，從而實現進一步的增長。

So now I'll turn the call to our CFO, Mr. Ming Yang, who'll discuss the company's financial performance for the quarter. Ming, please go ahead.

現在我將把電話轉給我們的財務長楊明先生，他將討論公司本季的財務表現。明，請說。

Thank you, Anita, and hello, everyone. This is Ming Yang, CFO of Daqo New Energy. We appreciate you joining our earnings conference call. I will now go over the company's second quarter of 2025 financial performance.

謝謝你，安妮塔，大家好。我是大全新能源財務長楊明。感謝您參加我們的收益電話會議。現在我將回顧公司2025年第二季的財務表現。

Revenues was $75.2 million compared to $123.9 million in the first quarter of 2025 and$ 219.9 million in the same quarter of (technical difficulty) The decreasing revenue compared to the first quarter of 2025 was primarily due to a decrease in sales volume.

營收為 7,520 萬美元，而 2025 年第一季為 1.239 億美元，去年同期為 2.199 億美元（技術難度）與 2025 年第一季相比收入下降主要是由於銷售量下降。

Gross loss of $81.4 million compared to $81.5 million in the first quarter of 2025 and $159 million in the second quarter of 2024. Gross margin was negative 108% compared to negative 65.8% in the first quarter of 2025 and negative 72% in the same quarter of 2024. The decrease in growth margin compared to the first quarter of 2025 was primarily because sales volume decreased while idle facility costs remained relatively fixed.

毛虧損為 8,140 萬美元，而 2025 年第一季為 8,150 萬美元，2024 年第二季為 1.59 億美元。毛利率為負 108%，而 2025 年第一季為負 65.8%，2024 年同期為負 72%。與2025年第一季相比，成長利潤率的下降主要是因為銷售量下降，而閒置設施成本保持相對固定。

SG&A expenses were $32.1 million compared to $35.1 million in the first quarter of 2025 and $37.5 million in the second quarter of 2024. SG&A expenses during the second quarter included $18.6 million in non-cash share-based compensation costs related to the company's shared incentive plan, compared to $18.6 million in the first quarter of 2025. The declining SG&A expenses in the second quarter compared to the first quarter is a result of lower staffing costs as well as lower sales expenses.

銷售、一般及行政費用為 3,210 萬美元，而 2025 年第一季為 3,510 萬美元，2024 年第二季為 3,750 萬美元。第二季的銷售、一般及行政費用包括與公司共享激勵計畫相關的 1,860 萬美元非現金股份薪酬成本，而 2025 年第一季為 1,860 萬美元。與第一季相比，第二季銷售、一般及行政費用 (SG&A) 的下降是由於員工成本和銷售費用的降低。

R&D expenses was $0.8 million compared to $0.5 million in the first quarter of 2025 and $1.8 million in the same quarter of 2024. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter.

研發費用為 80 萬美元，而 2025 年第一季為 50 萬美元，2024 年同期為 180 萬美元。研發費用可能因時期而異，並反映該季度發生的研發活動。

As a result, the foregoing loss on operations was $115 million compared to $114 million in the first quarter of 2025 and $195.6 million in the same quarter of 2024. Operating margin was negative 153% compared to negative 92% in the first quarter of 2025 and negative 89% in the second quarter of 2024.

因此，上述營業虧損為 1.15 億美元，而 2025 年第一季為 1.14 億美元，2024 年同期為 1.956 億美元。營業利益率為負 153%，而 2025 年第一季為負 92%，2024 年第二季為負 89%。

Net loss attributable to Daqo New Energy Corp shareholders was $76.5 million compared to $71.8 million in the first quarter of 2025 and $119.8 million in the second quarter of 2024. Loss per basic ADS was $1.14 compared to $1.07 in the first quarter of 2025 and $1.81 in the second quarter of 2024.

大全新能源股東淨虧損為 7,650 萬美元，而 2025 年第一季為 7,180 萬美元，2024 年第二季為 1.198 億美元。每份基本 ADS 虧損為 1.14 美元，而 2025 年第一季為 1.07 美元，2024 年第二季為 1.81 美元。

Adjusted net loss attributable to Daqo New Energy Corp shareholders, excluding non-cash share-based compensation costs was $57.9 million compared to $53.2 million in the first quarter of 2025 and $98.8 million in the same quarter of 2024. Adjusted loss for basic ADS was $0.86 compared to $0.80 in the first quarter of 2025 (technical difficulty) $1.50 in the same quarter of 2024.

大全新能源股東調整後淨虧損（不包括非現金股權激勵成本）為 5,790 萬美元，而 2025 年第一季為 5,320 萬美元，2024 年同期為 9,880 萬美元。基本 ADS 的調整後虧損為 0.86 美元，而 2025 年第一季為 0.80 美元（技術難度），2024 年同期為 1.50 美元。

EBITDA was negative $48 million compared to negative $48.4 million in the first quarter of 2025 and negative $145 million in the second quarter of 2024. EBITDA margin was negative 64% compared to negative 39% in the first quarter of 2025 and negative 66% in the second quarter of 2024.

EBITDA 為負 4,800 萬美元，而 2025 年第一季為負 4,840 萬美元，2024 年第二季為負 1.45 億美元。EBITDA 利潤率為負 64%，而 2025 年第一季為負 39%，2024 年第二季為負 66%。

Now on the company's financial conditions. As of June 30, 2025, the company has $599 million in cash, cash equivalents, and restricted cash, compared to $792 million as of March 31, 2025, and $998 million as of June 30, 2024.

現在介紹一下公司的財務狀況。截至 2025 年 6 月 30 日，該公司擁有 5.99 億美元現金、現金等價物和受限現金，而截至 2025 年 3 月 31 日為 7.92 億美元，截至 2024 年 6 月 30 日為 9.98 億美元。

As June 30, 2025, short-term investments was $418.8 million compared to $168 million as of March 31, 2025, and $219.5 million as of June 30, 2024. And as of June 30, 2025, notes receivable balance was $49 million compared to $62.7 million as of March 31, 2025, and $80.7 million as of June 30, 2024.

截至 2025 年 6 月 30 日，短期投資為 4.188 億美元，截至 2025 年 3 月 31 日為 1.68 億美元，截至 2024 年 6 月 30 日為 2.195 億美元。截至 2025 年 6 月 30 日，應收票據餘額為 4,900 萬美元，而截至 2025 年 3 月 31 日為 6,270 萬美元，截至 2024 年 6 月 30 日為 8,070 萬美元。

Notes receivable balance represent banknotes with maturity within six months. And as of June 30.25, the balance of fixed term deposits within one year was $960.7 million compared to $1.12 billion as of March 31, 2025, and 1.17 billion as of June 30, 2024.

應收票據餘額為六個月內到期的銀行票據。截至 2025 年 6 月 30 日，一年內定期存款餘額為 9.607 億美元，而截至 2025 年 3 月 31 日為 11.2 億美元，截至 2024 年 6 月 30 日為 11.7 億美元。

Now on the company's cash flows. For the six months ended June 30, 2025, net cash used in operating activities was $105.4 million compared to $278.6 million in the first -- in the same period of 2024. And for the six months ended June 30, 2025, net cash used in investing activities was $342.7 million compared to $1.7 billion in the same period of 2024.

現在討論公司的現金流。截至 2025 年 6 月 30 日的六個月，經營活動所用淨現金為 1.054 億美元，而 2024 年同期為 2.786 億美元。截至 2025 年 6 月 30 日的六個月，投資活動所用淨現金為 3.427 億美元，而 2024 年同期為 17 億美元。

The net cash used in investing activities in the first half of 2025 includes $87.8 million in the purchase of PP&E and $255 million related to purchase of short-term investments and fixed term deposits. And for the six months ended June 30, 2025, net cash using financing activities was worth $32,000 compared to $43 million in the same period of 2020.

2025 年上半年投資活動所用的淨現金包括購買 PP&E 的 8,780 萬美元和購買短期投資和定期存款的 2.55 億美元。截至 2025 年 6 月 30 日的六個月，融資活動淨現金流為 32,000 美元，而 2020 年同期為 4,300 萬美元。

And that concludes our prepared remarks. We will now open the call to Q&A from the audience. Operator, please begin.

我們的準備好的演講到此結束。我們現在開始觀眾問答環節。接線員，請開始。

(Operator Instructions) Alan Hon, JPMorgan.

（操作員指示）摩根大通的 Alan Hon。

A few questions to management. The first one is on the policy development (technical difficulty) on the latest development on the discussions on the consolidation or other policy development right now?

向管理層提出幾個問題。第一個問題是關於政策制定（技術難度）的問題，目前關於合併或其他政策制定的討論有什麼最新進展？

And number two is on poly prices. I understand like due to the pricing low. I mean, the (inaudible) price has increased to the 45% to 50% level. Very same time, I mean the sequential demand supply and channel inventory is also increasing. So how should we think about like the poly price in the next three months?

第二個是關於聚酯價格。我理解這是因為價格低。我的意思是，（聽不清楚）價格已經上漲到 45% 到 50% 的水平。同時，我的意思是連續的需求供應和通路庫存也在增加。那我們該如何看待未來三個月的聚乙烯價格呢？

Thank you, Alan. So regarding the latest development industry, so on August 19, the MIT, also the NDRC, along with the Ministry of Social Affairs, and State Administration for Market Regulation, and National Energy Administration, we have jointly held a symposium on the solid PV industry.

謝謝你，艾倫。關於最新的發展產業，8月19日，麻省理工學院、國家發展委員會、社會事務部、國家市場監督管理總局和國家能源局共同舉辦了固體光電產業研討會。

So during our meeting, a number of government officials together with a number of solar PV manufacturers and a lot of tower companies, as well as the CPA and relevant local industrial and information technologies [determined], they all attended the meeting. And basically, during the meaning they have, again, reinforced that we have to cure the (technical difficulty) composition of selling below cost.

所以在我們的會議期間，許多政府官員以及許多太陽能光伏製造商和許多塔架公司，以及CPA和相關的地方工業和資訊技術[確定]都參加了會議。基本上，從這個意義上來說，他們再次強調，我們必須解決低於成本銷售的（技術難題）問題。

So first, we have to strengthen the industry regulation through strengthening the mass of investment in the PV project. And promote the gradual phasing out of outdated production capacity through (inaudible) oriented and more base purchase.

所以首先要透過加大光電專案的投資力道來加強產業監管。並透過定向增發、基礎性收購等方式，推動落後產能逐步淘汰。

And second of all, they aim to curb low prices in (technical difficulty) competition. So through improving the price monitoring and also the product price mechanism to back down on regular practices such as selling below the cost.

其次，他們的目標是抑制低價（技術難度）競爭。透過完善價格監管，完善產品價格形成機制，杜絕低於成本價銷售等常見行為。

And lastly, to standardize the products -- the product quality, to combat practices such as reducing the quality cost control or things like infringing IP rights. And I think during the meeting, the essence is to support the industry self-regulation and to gradually work towards forming this buyout SPV for acquiring our data capacity in the industry.

最後，要實現產品品質標準化，打擊降低品質成本控製或侵犯智慧財產權等行為。我認為會議的本質是支持產業自律，並逐步努力組成收購 SPV 來獲取我們產業的數據能力。

And regarding prices, it will really depend on how this buyout SPV will roll out because we're still under the progress of working out the details of such SPV. So it's hard for us right now to say flatly how prices will develop in the coming months.

至於價格，這實際上取決於該收購 SPV 將如何推出，因為我們仍在製定此類 SPV 的細節。因此，我們現在很難斷言未來幾個月的價格將如何發展。

But I think as we can see recently, prices have increased, especially in the future market and the expectation of rising prices. Also, if we look at the latest solar projects that could work as a sign of the energy developments to China (inaudible) Corporation, they had a 20-gigawatt project.

但我認為最近我們看到價格是上漲的，特別是後市和價格上漲的預期。此外，如果我們看一下最新的太陽能項目，這些項目可以作為中國（聽不清楚）公司能源發展的標誌，他們有一個 20 千兆瓦的項目。

And from that, the model was around CNY71 per watt to CNY75 per watt. So it has really increased and it's way above the low prices for modules right now. And we believe that has passed through to the upstream poly sector. I hope that answers your question.

從那時起，該模型的價格約為每瓦 71 元人民幣至每瓦 75 元人民幣。所以它確實上漲了，而且遠高於目前模組的低價。我們相信，這種影響已經傳遞到了上游多晶矽產業。我希望這能回答你的問題。

Philip Shen, Roth Capital Partners.

菲利普‧沈 (Philip Shen)，羅斯資本合夥公司。

This is [Matt Inger] on for Phil. Following up on the past question is how sustainable do you think that higher pricing can be when -- with the anti-involution initiatives? And secondly, what's your outlook for industry production volumes? And when would you expect to see the inventory levels be healthy again?

我是 [Matt Inger]，代表 Phil 發言。接下來的問題是，您認為在反過度密化措施實施的情況下，更高的定價能維持多久？其次，您對產業產量有何展望？您預計什麼時候庫存水準會恢復正常？

Give us a minute, we're going to translate for Mr. Xiang.

等一下，我們要為項先生翻譯。

(spoken in foreign language)

（用外語說）

Okay. So first of all, I think one thing that's clear is that there have been consensus that selling below cash cost is unsustainable and very detrimental to the overall industry development. And in our view, that's disruptive to the healthy development of the industry and, hence, post a legal risk.

好的。首先，我認為有一點很清楚，那就是人們一致認為，低於現金成本的銷售是不可持續的，並且對整個行業發展非常不利。我們認為，這會破壞產業的健康發展，並因此帶來法律風險。

And hence, we would be enforcing the regulations and the loss. And we think that all the industries -- all the industry players are on the same page regarding that. And in terms of production volume, I think going forward in the next couple of months, it will be around a 100,000 metric tons to around 110,000 metric tons, relatively balanced with demand per month.

因此，我們將執行法規並承擔損失。我們認為所有行業——所有行業參與者對此都有相同的看法。就產量而言，我認為未來幾個月產量將在 10 萬公噸至 11 萬公噸左右，與每月需求相對平衡。

Okay. And then you talked about potentially in the past like acquiring surplus production capacity. Is there an update on that strategy? And do you think we could see anything in the near term?

好的。然後您談到了過去可能獲得的過剩生產能力。該戰略有最新消息嗎？您認為我們近期能看到什麼進展嗎？

Yes. I think we're still under (inaudible) for some products for the TV. And I think the whole picture will become more clear in the coming weeks or the coming months. But all the industry players as well as the power companies and the relevant regulators are all working hard towards coming to a consensus because that would be very remarkable for the industry and put -- set the tone for similar industries in China, such as EV and also lithium batteries.

是的。我認為我們仍然在（聽不清楚）為一些電視提供產品。我認為未來幾週或幾個月內整個情況將會變得更加清晰。但所有產業參與者、電力公司和相關監管機構都在努力達成共識，因為這對產業來說非常了不起，並為中國類似產業（如電動車和鋰電池）定下基調。

I think they're starting with solar PV, which is why I mentioned about solar PV and that news article by People's Daily on June 30. So we're all working very hard towards coming to a results. And we are quite optimistic about that because that's what the industry should be, and that's good for the overall development of the industry.

我認為他們是從太陽能光電開始的，這就是我提到太陽能光電和《人民日報》6月30日那篇新聞報道的原因。因此，我們都在努力工作以取得成果。我們對此非常樂觀，因為這就是產業應該的樣子，這對產業的整體發展有利。

Because right now, selling thorough our cash coffers, first of all, none of the company is making a profit. And second of all, internationally, they have been viewing China or accusing China of anti-dumping, and that's not something that we want to see as a whole.

因為現在，透過出售我們的現金庫，首先，公司沒有一家獲利。其次，國際上一直在看中國或指責中國反傾銷，這不是我們整體願意看到的。

Alan Young, Jefferies.

艾倫楊 (Alan Young)，傑富瑞 (Jefferies)。

My question is about the buyback the company just announced. So I saw that the company has approved $100 million of share repurchase program. I wonder if -- what's the thinking behind that? And also what's the timeline in the buyback?

我的問題是關於公司剛剛宣布的回購。我看到公司已經批准了1億美元的股票回購計畫。我想知道──這背後的想法是什麼？回購的時間表是怎樣的？

Yes. Thank you, Alan. So we have to just authorized a new share repurchase program today in the amount of USD100 million until the end of next year. And the logic behind this is that we are optimistic about the future of the industry, and we believe we could see a turning point soon.

是的。謝謝你，艾倫。因此，我們今天必須批准一項新的股票回購計劃，金額為 1 億美元，持續到明年年底。背後的邏輯是，我們對產業的未來感到樂觀，並相信很快就會看到轉捩點。

I will leave in previously our valuable shareholders have been wondering when we want to start the share repurchase. And the reason why we were hesitant about it is because we believe that we just rely on the market to rebalance the point demand will take a relatively long time of approximately two to three years, given how strong and all the companies who have expanded their capacity that's around ours.

之前我說過，我們尊貴的股東一直在想我們什麼時候開始股票回購。我們之所以對此猶豫不決，是因為我們認為，僅依靠市場來重新平衡點需求將需要相對較長的時間，大約兩到三年，考慮到我們周圍的公司都擴大了產能。

However, we believe that because we are on the same page towards promoting the healthy development of the industry and, hence, we are more optimistic about the future or the outlook of the entire industry. And we believe that we want to strengthen the confidence of our shareholders as well, and that's aligned with our overall strategy.

但我們相信，由於大家在推動產業健康發展方面是一致的，因此對整個產業的未來或前景是比較樂觀的。我們相信我們也希望增強股東的信心，這與我們的整體策略一致。

And in terms of the overall pace of the share repurchase program, I think that would also be contingent upon the market development. But that's definitely the first we're working towards strengthening the confidence in the market.

至於股票回購計畫的整體步伐，我認為這也取決於市場的發展。但這絕對是我們努力增強市場信心的第一步。

(technical difficulty) given that the stock price of Asia is actually above the IPO price already, so will share price or shareholding reduction on a share to fund further buyback in USD back on the table again?

（技術難題）鑑於亞洲的股價實際上已經高於 IPO 價格，那麼股價或股票減持以資助進一步的美元回購是否會再次被提上議程？

Yes. I think that's definitely a consideration given that we have been trading above the IPO price. Right now, it should be around [CNY30] please. And yes, that's definitely on the table and we'll consider that.

是的。我認為這肯定是一個考慮因素，因為我們的交易價格一直高於 IPO 價格。現在，應該在 [CNY30] 左右。是的，這絕對是可行的，我們會考慮的。

But I think how we want to serve this program versus the remaining cash on our risk goal right now. Because previously, we still have a meaningful amount on the list. So we will start with that allocation first, but selling IPO to repurchase on the [UIs] is definitely back on the table.

但我認為，相對於我們目前的風險目標中剩餘的現金，我們希望如何服務這個專案。因為之前，我們的名單上仍然有相當數量有意義的東西。因此，我們將首先從該分配開始，但出售 IPO 以回購 [UI] 肯定會重新提上議程。

And following the question from Alan and also Philip on the consolidation initiative. So how do you see yourself in terms of the end game, like the -- among the volume, you will be able to produce? For example, now, your guidance is around 11 -- 110,000 and 130,000 thousand of metric ton volume on this year. If the consolidation as far is successful, what we think will be your production volume going forward?

接下來是艾倫和菲利普關於合併計畫的問題。那麼，就最終結果而言，您如何看待自己，例如——在數量上，您將能夠生產什麼？例如，現在，您的指導是今年的產量約為 11 - 110,000 和 130,000 千公噸。如果整合成功，我們認為您未來的產量將會是多少？

I think that depends on a couple of things. If we calculate the amount of overall capacity that's built or in the process of being built, that will be around 3.5 million metric tons at least. And the production volume of how much we have produced per year will really depend on how much capacity are still remaining in the market and the overall demand per year, right?

我認為這取決於幾件事。如果我們計算已建成或正在建設的總產能，那麼至少將在 350 萬公噸左右。而我們每年生產多少，實際上取決於市場還有多少產能以及每年的整體需求，對嗎？

Because I think the fundamentals behind this -- the action is that the supply would meet demand per year from now on. So not -- I believe that going forward, all the companies will reduce their utilization rates or operate at a utilization rate that would match the demand. So it won't be 100% at least in the coming years.

因為我認為這背後的基本面是──從現在開始每年的供應都會滿足需求。所以不是——我相信，展望未來，所有公司都會降低利用率，或以與需求相符的利用率運作。因此至少在未來幾年內不會達到 100%。

Mengwen Wang, Goldman Sachs.

高盛的王夢文。

I have two questions mainly related to the poly price outlook. So first, like do we have any color on the benchmark production cost to derive the policy regulated pricing? Because I don't know, there's a lot of news coming in to talk about the selling price should not be under the production cost, but -- do we have any more colors on the definition of the production cost?

我有兩個問題主要與聚合物價格前景有關。那麼首先，我們是否有基準生產成本來推導政策監理定價？因為我不知道，有很多新聞都在談論銷售價格不應該低於生產成本，但──我們對生產成本的定義還有進一步的解釋嗎？

And secondly, as we mentioned, like the -- we have been doing well in terms of to sustain the poly price hike. And as a result, our shipment volume declined a bit. So going forward, how do we see -- how do we balance the price and inventory, the dynamic? Yes, that's my question.

其次，正如我們所提到的，我們在維持聚合物價格上漲方面做得很好。結果，我們的出貨量有所下降。那麼展望未來，我們如何看待──如何平衡價格和庫存的動態？是的，這就是我的問題。

Okay. Thanks, Mengwen, for your question. So our view is that the industry will need to sell at a price above the industry production costs. And our understanding is the industry, overall, I would say, the average production cost probably in the mid-40-ish range. So our view is that because of the Chinese loss and the government policy is that, that's -- that will be the minimum poly pricing that the industry players will be required to sell to its customers.

好的。謝謝孟文的提問。因此，我們認為該行業需要以高於該行業生產成本的價格出售。我們的理解是，整個產業的平均生產成本大概在 40% 左右。因此，我們的觀點是，由於中國的損失和政府的政策，這將是產業參與者必須向其客戶出售的最低多晶矽定價。

And I think if you look at the most recent -- I think both transaction pricing as well as futures pricing, right, in the high -- the high 40s to the low 50s. So that is reflective of the new government policy that requires the industry players to sell above production costs. So that is our poly price outlook going forward.

我認為，如果你看一下最近的情況——我認為交易定價和期貨定價都在高位——40 多美元到 50 多美元之間。這體現了政府的新政策，即要求產業參與者以高於生產成本的價格出售產品。這就是我們對未來聚合物價格的展望。

Yes. To follow up that question. If the poly price stay at around (technical difficulty) per kilo, and if we do our products don't sell, like we keep piling up our inventory. So how do we see how to, like, how -- what's our strategy in terms of this kind of situation?

是的。繼續追問這個問題。如果聚乙烯價格維持在每公斤（技術難度）左右，我們的產品就賣不出去，就像我們不斷堆積庫存一樣。那我們如何看待這種情況，我們的策略是什麼？

I think there will be industry policies and perhaps government policy is supported by the government. But -- and that will require industry supply to balance with industry demand, right? So let's say, just making assumptions, right, industry demand say is 1.2 million tons per year in 100,000 tons per month than the industry sales and the annual production will be consistent with that kind of demand levels that will be adjusted so that poly pricing can be maintained at the production costs are above level.

我認為會有行業政策，也許政府會有政策支持。但是——這就需要產業供應與產業需求保持平衡，對嗎？因此，讓我們假設一下，行業需求是每年 120 萬噸，即每月 10 萬噸，而行業銷售量和年產量將與這種需求水平保持一致，並將進行調整，以便將聚合物定價維持在生產成本以上的水平。

And to follow up on your question on inventory, I think for a big picture if people want to manage their inventory, I think the direction is to manage the utilization rate of the company so that will not be over demand going forward. And for us, we will really have to wait to see how the regulation unfolds in the next coming weeks or the next coming months that before we can decide what our strategy will be.

關於庫存的問題，我認為從總體上看，如果人們想要管理庫存，那麼方向就是管理公司的利用率，這樣未來就不會出現需求過剩的情況。對我們來說，我們真的必須等待，看看未來幾週或幾個月內監管將如何展開，然後才能決定我們的策略。

And also to add on, I know there are companies who are participating in the futures market. We've also participated a meaningful amount in the future market just to hedge the risk and to arbitrage the strategy.

另外，我知道有些公司正在參與期貨市場。我們也大量參與了期貨市場，只是為了對沖風險和套利策略。

That's really clear. So to sum up, we are expecting some kind of policy to help the industry cut production into September. And we have actively engaged in the policy computer market in order to mitigate the volatility of the poly price, right?

這確實很清楚。總而言之，我們期待某種政策能幫助該產業在 9 月減產。而我們積極參與政策電腦市場，是為了減輕聚合物價格的波動，對嗎？

We -- I mean, we were registered as a first batch of the companies who are allowed to sell in the futures market. But strategy-wise (technical difficulty) how the regulations will come out. And yes, and how the spot prices will move.

我們——我的意思是，我們是第一批被允許在期貨市場上銷售的公司之一。但從策略角度（技術難度）來看，法規將如何推出。是的，現貨價格將如何變動。

Yes. Sure. How about the policy timeline? Is that -- should we expect any meaningful policy kicking into September?

是的。當然。政策時間表如何？那是──我們是否應該期待九月出台任何有意義的政策？

We are working towards all of the related parties, including the [CPIA], the manufacturers, and the related regulators are working very diligently toward the results coming out from the continued meetings. However, we cannot guarantee, but we believe that because everyone is on the same page, we are working towards result or a proposal coming out.

我們正在與所有相關方合作，包括 [CPIA]、製造商和相關監管機構，他們正在非常努力地爭取後續會議的結果。然而，我們無法保證，但我們相信，由於每個人都達成共識，我們正在努力取得成果或提出提案。

Zihui Hu, CICC

鬍子慧，中金公司

This is Zihui Hu from CICC and my first question is, I found you lower the sales volume for second quarter. So how is the planning it? And what's the plan for utilization rates in the future?

我是中金公司的鬍子暉，我的第一個問題是，我發現你們下調了第二季的銷售量。那麼規劃得怎麼樣呢？未來的使用率計畫是怎樣的？

And my second question is I find cap reduced the production cost besides the reduced cash cost. So what other ways are there to reduce the cost?

我的第二個問題是，我發現除了降低現金成本之外，上限還降低了生產成本。那麼還有哪些方法可以降低成本呢？

So I think for the first question, the reason why the sales volume is meaningfully below the production volumes because prices are really trading at a very low level and below cost [cost] level. And as we are working towards or working out of proposals since -- and in the first meeting that we hosted and hosted by MIT and DRC are happening in the second quarter.

所以我認為對於第一個問題，銷售量明顯低於產量的原因是價格確實處於非常低的水平，低於成本水平。自那時起，我們就在努力製定提案——我們主辦的、由麻省理工學院和 DRC 主辦的第一次會議將在第二季度舉行。

So we are waiting to see how the policies will shift or how much capacity will phase out in the future so that we can adjust our sales strategy accordingly. And we believe that once the regulation comes out, if any, then we will try to maintain our inventory at a healthy level.

因此，我們正在等待觀察政策如何轉變或未來有多少產能將被淘汰，以便我們能夠相應地調整銷售策略。我們相信，一旦監管出台（如果有的話），我們將盡力將庫存維持在健康水平。

So I'll follow up. Regarding utilization rate, so I think we're maintaining the 30% to 35% utilization rate. I think it will be subject to, for example, demand environment and pricing as well as the industry consensus or industry self-discipline in terms of supply and production. So it'll be balance of those, the decision. But I think currently, we're maintaining the 30% to 35% utilization rate for now in monitoring industry status and progress.

所以我會跟進。關於利用率，我認為我們將保持 30% 至 35% 的利用率。我認為這將受到需求環境和定價以及供應和生產方面的行業共識或行業自律等因素的影響。所以，這需要平衡這些因素，然後做出決定。但我認為目前我們在監控行業狀況和進展時暫時維持 30% 至 35% 的利用率。

In terms of production costs, I think for Q2, it is slightly lower than Q1. I think it's helped by both improvements in manufacturing efficiency and, for example, lower energy usage and lower and lower metal cost.

就生產成本而言，我認為第二季的生產成本略低於第一季。我認為這得益於製造效率的提高，以及能源消耗的降低和金屬成本的降低。

And currently, we're expecting the cost trend to continue to improve for Q3. As well as, for example, our current cash cost is approximately, say, $5 per kilogram in I think based on the current metal cost, which already lower than our Q2 2025 cost. So that's the current cost status for the company.

目前，我們預計第三季的成本趨勢將持續改善。例如，根據目前的金屬成本，我認為我們目前的現金成本約為每公斤 5 美元，這已經低於我們 2025 年第二季的成本。這就是該公司目前的成本狀況。

Gordon Johnson, GLJ Research.

戈登·約翰遜，GLJ 研究。

So I guess my first question is, it seems like you guys explicitly said you intentionally held back Polysilicon sales in the second quarter. So can we conclude from that, that you'll sell more in the third quarter? If you could provide some color there.

所以我想我的第一個問題是，看起來你們明確表示你們故意抑制了第二季的多晶矽銷售。那麼我們可以由此得出結論，你們在第三季的銷售量會更高嗎？如果您可以提供一些顏色。

And then from my calculations, it seems like you're guiding production to increase from 26,000 metric tons at the midpoint in Q2 to 28.5 thousand in Q3 and then 40.7 thousand in Q4. Should we take from that you intend to sell significantly more Polysilicon in Q4? And then I have a follow-up.

然後根據我的計算，似乎您指導的產量將從第二季中期的 26,000 公噸增加到第三季的 28,500 公噸，然後是第四季度的 40,700 公噸。我們是否可以由此推斷您打算在第四季銷售更多多晶矽？然後我有一個後續問題。

Thank you, Gordon. So first of all, I think the reason why we held back or sold relatively a lot lower than our actual production volume was because it was trading at below cash cost. And as we don't want to disrupt the overall industry dynamics.

謝謝你，戈登。首先，我認為我們之所以抑制產量或以相對低於實際產量的價格出售，是因為當時的交易價格低於現金成本。而且我們不想擾亂整個產業動態。

So I should say, the industry has guided that we should not be selling below the production cost. We have adjusted our sales strategy accordingly. And going forward in the third quarter, you might have seen recently that prices have ticked up.

所以我應該說，產業指導我們不應該以低於生產成本的價格出售。我們也相應調整了銷售策略。展望第三季度，您可能最近已經看到價格有所上漲。

And we believe if it's not cutting below our cost, and it makes sense for us to start selling. And like I said before, I think it will really depend on when and how the regulations will come out, then we would adjust our sales strategies accordingly in the remaining days in the third quarter as well as going forward into the fourth quarter.

我們相信，如果價格沒有低於我們的成本，那麼開始銷售就是合理的。正如我之前所說，我認為這實際上取決於法規何時以及如何出台，然後我們將在第三季剩餘時間以及第四季相應地調整我們的銷售策略。

Okay. That's helpful. And then if I think about -- you guys said that transactions and the futures market is around the high 40s, low 50s. Based on my calculation, that would suggest the price of around $7.70 for Polysilicon USD.

好的。這很有幫助。然後如果我考慮一下——你們說交易和期貨市場大約在 40 多到 50 多之間。根據我的計算，這意味著多晶矽的價格約為 7.70 美元。

Your ASP in Q2 was [$419 million]. So I understand you don't have great visibility, it seems like, on what you're going to sell in Q3 until policy is decided. But are you transacting at that price that you highlighted, the high 49s/low 50s levels right now? Thank you for the questions.

您第二季的平均售價是[4.19億美元]。因此，我理解，在政策確定之前，您似乎對第三季要銷售的產品沒有很好的了解。但是，您現在是否按照您強調的價格（即 49 美分以上 / 50 美分以下）進行交易？謝謝您的提問。

Gordon, so I think that there's two specific goals that the company is trying to achieve, right? So one is based on the, I think, the government policies and the new law. So I think we will start at below -- above our production costs for sure. And I think the levels indicated is representative of the market current transactional cost.

戈登，所以我認為公司正在努力實現兩個具體目標，對嗎？所以我認為，一個是基於政府政策和新法。所以我認為我們肯定會從低於——高於我們的生產成本的價格開始。我認為所示水準代表了市場目前的交易成本。

And also, one of our -- another of our companies still operation goal is to significantly reduce our inventory at hand as well given the current market dynamic environment or was this opting to do that. So we will try do that.

此外，考慮到目前的市場動態環境，我們公司的另一個營運目標仍然是大幅減少庫存，或者說我們選擇這樣做。所以我們會嘗試這麼做。

And I guess one clarification regarding pricing, the RMB price of [recall] actually includes a 13% VAT, okay? So I think you have to divide by [1.13] to get to the actual selling price ex VAT because that's ran us roughly maybe [$5.8] (technical difficulty) a range like.

我想澄清一下定價問題，[召回]的人民幣價格實際上包含 13% 的增值稅，好嗎？所以我認為你必須除以 [1.13] 才能得到不含增值稅的實際售價，因為這大約是 [$5.8]（技術難度）左右。

All right. So I mean does that mean you guys will be gross margin positive in Q3?

好的。所以我的意思是，這是否意味著你們第三季的毛利率將為正值？

Let me just conclude that we expect to be cash or generating cash from our sales. Because there's a lot of, I guess, non-cash depreciation costs related to our idle facility because we're only running at one-third utilization. Yes. But I think if you remove the non-cash depreciation, I think we're going to generate positive cash margin.

我只想總結一下，我們期望從銷售中獲得現金或產生現金。因為我猜想，因為我們的閒置設施只以三分之一的利用率運行，所以會產生大量非現金折舊成本。是的。但我認為，如果消除非現金折舊，我們將產生正現金利潤。

This will conclude our question-and-answer session. At this time, I'd like to turn the conference back over to Jessie Zhao for any closing remarks.

我們的問答環節到此結束。現在，我想將會議交還給 Jessie Zhao 做結束語。

Thank you, everyone, again, for participating in today's conference call. Should you had any further questions, please don't hesitate to contact us. Thank you and have an awesome day. Goodbye.

再次感謝大家參加今天的電話會議。如果您還有其他問題，請隨時與我們聯絡。謝謝您，祝您有美好的一天。再見。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

會議現已結束。感謝您參加今天的演示，現在您可以斷開您的線路了。