Xinjiang Daqo Litigation Update 2025: $60M Dispute Settled, Shares Rally

SHANGHAI, Sept. 11, 2025 /PRNewswire/ -- 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 that its subsidiary Xinjiang Daqo has provided an update on a lawsuit.

In April 2024, Xinjiang Daqo New Energy Co., Ltd. ("Xinjiang Daqo"), a subsidiary of Daqo New Energy (the "Company"), received a court summons relating to a contract dispute lawsuit filed against it by Xinjiang Xian'an New Materials Co., Ltd. and its affiliate, Xinjiang Dengbo New Energy Co., Ltd. The plaintiffs previously provided silicon core processing services to Xinjiang Daqo. The plaintiffs requested for termination of the business cooperation agreement with Xinjiang Daqo and for compensation from Xinjiang Daqo for their economic losses totaling RMB1,958.5 million (which was later reduced to RMB742.7 million), which consisted largely of alleged consequential damages of the plaintiffs. This litigation was previously disclosed in the Company's annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on April 29, 2024, its press release dated July 17, 2024, and its Form 6-K dated March 17, 2025 and Form 6-K dated April 22, 2025.

In July 2024, the Company received the first instance court's verdict, which affirmed termination of the business cooperation agreement and ordered Xinjiang Daqo to compensate the plaintiffs for their losses and attorney fees totaling RMB3.16 million, while rejecting the plaintiffs' claims for consequential damages. The plaintiffs appealed to the second instance court. In March 2025, the Company received the second instance court's verdict, which vacated the decision of the first instance court and remanded the case for a retrial.

Recently, the Company received the verdict of the first instance court's retrial, which affirmed termination of the business cooperation agreement and ordered Xinjiang Daqo to compensate the plaintiffs for their losses and attorney fees totaling RMB3.30 million, while rejecting the plaintiffs' claims for consequential damages. The litigation's impact on Xinjiang Daqo will be contingent upon the final verdict.

For more information, please visit www.dqsolar.com.