Daqo’s subsidiary Xinjiang Daqo Starts IPO Registration with China Securities Regulatory Commission and Provides Preliminary Estimates of Revenue and Net Profit for Q2 2021
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, is in the process of applying for an initial public offering (“IPO”) of the Company’s major operational subsidiary, Xinjiang Daqo New Energy (“Xinjiang Daqo”), on the Shanghai Stock Exchange’s Sci-Tech innovation board. The application documents of the IPO were submitted by the Shanghai Stock Exchange to the China Securities Regulatory Commission for registration on May 28.
As part of its IPO process, Xinjiang Daqo is requested by the Shanghai Stock Exchange to publicly disclose estimates of Xinjiang Daqo’s revenue and net profit as prepared in accordance with the Accounting Standards for Business Enterprises (“PRC GAAP”) for the second quarter ending June 30, 2021 in its IPO prospectus submitted to the Shanghai Stock Exchange as follows:
The estimated revenue of Xinjiang Daqo under PRC GAAP for the second quarter ending June 30, 2021 would be in the range of RMB2.46~2.51 billion. The estimated net profit attributable to the shareholders of Xinjiang Daqo for the quarter ending June 30, 2021 would be in the range of RMB1.30~1.33 billion.
Daqo New Energy currently owns 95.6% equity interest of Xinjiang Daqo and a majority of the Company’s revenue and net income is contributed by Xinjiang Daqo. The financial estimates for the second quarter ending June 30, 2021 described in this press release were prepared solely for Xinjiang Daqo in RMB in accordance with PRC GAAP, which are different from the Company’s consolidated financial results for the same period, as the Company’s consolidated financial results are prepared in accordance with U.S. generally accepted accounting principles and in U.S. dollars.
Xinjiang Daqo’s financial estimates for the second quarter ending June 30, 2021 are subject to change upon the completion of Xinjiang Daqo’s internal financial closing and reporting process. The financial estimates described in this press release are based solely on the information currently available to Xinjiang Daqo’s management. Its actual results could vary materially from these preliminary estimates. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided. These preliminary revenue and net profit estimates should not be viewed as a substitute for full financial statements of Xinjiang Daqo prepared in accordance with PRC GAAP. In addition, these preliminary estimates are not necessarily indicative of the results to be achieved by Xinjiang Daqo in any future period.
Source: Daqo New Energy Corp.