SHIHEZI, China, Sept. 11, 2020 /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 the application documents
regarding a potential initial public offering and listing of the
shares of Xinjiang Daqo New Energy Co., Ltd. ("Xinjiang Daqo"), a
principal operating subsidiary of Daqo New Energy, had been
submitted to and received by the Shanghai Stock Exchange.
In June 2020, Daqo New Energy
announced its intention to list the shares of Xinjiang Daqo on the
Shanghai Stock Exchange's Sci-Tech innovation board (the "STAR
Market"), a stock exchange intended to support innovative companies
in China.
According to Xinjiang Daqo's relevant initial public offering
documents, it plans to issue at least 286,764,706 shares,
accounting for approximately 15.00% of its total share capital
after the offering. Currently, the Company owns approximately
95.60% of Xinjiang Daqo's shares. Following this initial public
offering, the Company would hold approximately 81.26% of Xinjiang
Daqo's shares.
The proceeds of the offering, which are subject to the actual
size and pricing of the offering, will be used for capital
expenditures for the following two polysilicon manufacturing
projects and additional working capital for Xinjiang Daqo.
1) Phase 4B
ultra-high-purity polysilicon project for mono-crystalline solar PV
wafer applications with an annual production capacity of
35,000 MT, which will significantly
increase our capacity to better address the fast-growing demand for
mono-grade polysilicon and further solidify our leadership in the
industry. The total capital expenditure for this project is
expected to be approximately US$514
million.
2) A semi-grade ultra-high-purity polysilicon project for
semiconductor wafer applications with an annual capacity of
1,000 MT, which will best leverage
our expertise in advanced technology and quality control, diversify
our product portfolio and fill the gap of domestic supply of
semi-grade polysilicon. The total capital expenditure for this
project is expected to be approximately US$62 million.
3) Additional working capital of approximately
US$156 million to optimize debt
structure, enhance R&D and fund business development
projects.
The completion of the proposed initial public offering of
Xinjiang Daqo is subject to the review process by the Shanghai
Stock Exchange and the registration process by the China Securities
Regulatory Commission. The Company cannot predict its ability to
successfully complete the listing of Xinjiang Daqo's shares, the
related timeline or the actual size and pricing of the
offering.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a
leading manufacturer of high-purity polysilicon for the global
solar PV industry. Founded in 2008, the Company is one of the
world's lowest cost producers of high-purity polysilicon. Daqo's
highly-efficient and technically advanced manufacturing facility in
Xinjiang, China currently has a
nameplate annual polysilicon production capacity of 70,000 metric
tons.
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com
Christensen
Mr. Rene Vanguestaine
Phone: +86 178 1749 0483
Email: rvanguestaine@christensenir.com
In the U.S.
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information, please visit www.dqsolar.com
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" and similar statements. Forward-looking
statements in this announcement include, among other things, Daqo
New Energy's strategic and operational plans, the proposed listing
of Xinjiang Daqo shares on the STAR Market and its timing. 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. 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
Company's ability to successfully complete the proposed STAR Market
listing of Xinjiang Daqo's shares; the impact of the proposed STAR
Market listing on the Company's business and results of operations,
the use of proceeds of the proposed initial purchase offering of
Xinjiang Daqo's shares, and perceptions of the initial public
offering and STAR Market listing of Xinjiang Daqo's shares by the
Company's customers and other business partners and investors; 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; and the Company's ability to lower its production
costs; and the duration of COVID-19 outbreaks in China and many other countries and the impact
of the outbreaks and the quarantines and travel restrictions
instituted by relevant governments on economic and market
conditions, including potentially weaker global demand for solar PV
installations that could adversely affect the Company's business
and financial performance. Further information regarding these and
other risks is included in the reports or documents that 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.
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SOURCE Daqo New Energy Corp.