Oct 27, 2026 earnings call — Polysilicon shipment rebound and AI infrastructure push
Q3 revenue rose to $194.2 million, driven by sales of 46.9 thousand metric tons and higher selling prices.
Revenue $0.2B (est $0.1B) · EPS $-0.78 (est $-0.48)
Key quotes
"Supported by continued anti-involution policy, including price enforcement, the polysilicon sector bottom out, and rebounded in Q3 with polysilicon prices gradually recovering towards cost levels."
"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 per kilogram, and $4.23 per kilogram, respectively, reflecting our continued improvement in manufacturing efficiency and cost control."
"We are also diversifying beyond our core polysilicon business to reduce our exposure to solar PV sector's cyclicality by targeting the fast growing AI data center power infrastructure market."
Analyst Q&A 6
Q4 selling price level
Q (O · JPMorgan): He asked whether fourth-quarter sales prices will follow current spot market levels or reflect earlier contracts signed in July at $4 per kilogram.
A: Management said their goal is to sell above all-in cost. They use Q3 all-in cost as the benchmark at least 43 RMB per kilogram and said prices could recover to 45 to 50 RMB per kilogram if policies tighten.
Policy enforcement, pricing, AIDC plans
Q (O · ROTH Capital Partners): He asked how strongly authorities might enforce anti-involution rules and what punitive actions they could take. He also asked about 2027 pricing expectations and how much the company will invest and when AIDC revenues might start.
A: They said they sense a firmer tone on two fronts: phasing out outdated, high-energy capacity and discussing pricing floors, though details remain under debate. They said punitive steps could include fines for companies selling below floor and in extreme cases cutting power to facilities. They also gave a pricing benchmark: Q3 all-in cost at least 43 RMB per kilogram and possible recovery to 45 to 50 RMB per kilogram; AIDC construction is underway, sales expected next year, and next-year CapEx is roughly RMB 1 billion with gross margin around 15%-20% and net profit margin in the high single digits.
"I think the most straightforward punitive action upfront would be the fine for the companies that do not abide by these principles and guidelines." — Xu Xiaoyu (CEO)
Enforcement, demand, shareholder returns
Q (Alan Lau · Jefferies): He asked why enforcement has been delayed and whether demand will fall next year. He also asked about possible market exits or overseas expansion and when the company might return cash to shareholders.
A: They said one reason for delay is concern that fixing overall industry production and sales volumes could create a monopoly and harm long-term development. They expect China demand to be flat or show a small year-on-year decrease while global demand may grow modestly, with next year around the high 100 to 200-gigawatt range. They said returning value to shareholders is a key priority, but they want policy clarity and peer responses before sizing any repurchase or dividend program and will discuss options with the board in coming months and in Q4.
"First of all, we recognize the current state and we do think we strongly believe that returning value to our shareholders remains a key priority for our management team and our board." — Xu Xiaoyu (CEO)
Q4 sales, 2027 volume, costs, inventory
Q (O · Citibank): They asked expected sales volume in Q4 and the volume outlook for 2027. They also asked whether production costs will keep falling and under what condition inventory provisions would change in Q4.
A: They said Q4 sales will be close to production and the top priority is to reduce inventory; the company aims to maintain about 20% to 25% market share in 2027. On costs, they said Q3 showed significant reductions from lower energy use and material costs and expect Q4 costs to be similar to Q3 and 2027 costs to be similar or slightly lower. On inventory provision, they said if the market stays at the current ASP, Q4 inventory provision should be less than Q3.
"So that will be around 20% to 25% of the market. For 2027." — Xu Xiaoyu (CEO)
Q4 shipments, advances, cash priorities
Q (Gordon Johnson · GLJ): He asked what sales volume to expect in Q4 and how much of the $140 million in customer advances will be delivered. He also asked priorities for the $2.06 billion cash balance and how much will go to the AIDC project and cash split between parent and Xinjiang entity.
A: They said they expect Q4 shipments to be higher than Q4 production as they reduce inventory, and that the $140 million is all contracted and expected to be delivered in Q4. For AIDC, committed CapEx is about $20 million to build manufacturing and equipment. They said there is over $300 million offshore and roughly RMB 10 billion on the domestic Xinjiang Daqo entity.
"I would say for AIDC, committed CapEx currently is around $20 million or so." — Ming Yang (CFO)
Conference closing
Q (O): No question; conference ending and any closing remarks.
A: The company thanked participants, invited follow-up questions and contact, and closed the call.
"Thank you, everyone, again for participating in our conference call. Should you have any further questions, please do not hesitate to contact us." — Jessie Zhao