Daqo New Energy provides update on $700M share repurchase program

Daqo New Energy provided an update on its USD$700 million share repurchase program that was announced on November 7, 2022. As of today, approximately 43.1% of the authorized repurchase amount under the program has been executed through repurchases by an intermediary in the open market at prevailing prices or in privately negotiated transactions. The Company has repurchased 7.28 million ADSs for approximately $301.7 million under the current program, at an average cost of $41.42 per ADS. Xiang Xu, Chairman and CEO of the Company, commented, “In the month of August, we accelerated our pace, repurchasing 3.11 million ADSs for approximately $112.9 million, at an average cost of $36.22 per ADS. We believe that our shares are undervalued despite our solid performance and our industry’s promising outlook. As a result, we expect to continue to buy back ADSs when they are trading below our expectations. The Company’s balance sheet and liquidity positions are robust. At the end of the second quarter, the Company had a cash balance of $3.2 billion and a combined cash and bank note receivable balance of $4.0 billion. In the first half of 2023, the Company had an operating cash inflow of $786 million. Hence, the upper limit of our share repurchase program remains unchanged at $700 million, and we are committed to executing the program through the remainder of 2023. The timing of repurchase, number of shares repurchased and prices paid will depend upon the Company’s business developments and market conditions, as well as corporate governance and regulatory restrictions, including any blackout period requirements.”