SHANGHAI, July 17,
2024 /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 its litigation event.
In January 2024, Xinjiang Daqo
received a court notice relating to a contract dispute lawsuit
filed against it by Xinjiang Xian'an New Materials Co., Ltd.
("Xinjiang Xian'an") and its affiliate, Xinjiang Dengbo New Energy
Co., Ltd. ("Xinjiang Dengbo", together with Xinjiang Xian'an, "the
plaintiffs"). The plaintiffs previously provided silicon core
processing services to Xinjiang Daqo. They claimed that Xinjiang
Daqo and its related companies breached the business cooperation
agreement between Xinjiang Daqo and Xinjiang Xian'an, and requested
for termination of the business cooperation agreement and
compensation from Xinjiang Daqo for their economic losses of
RMB1,958.5 million (which was later
reduced to RMB1,847.8 million). This
litigation was previously disclosed in our annual report on Form
20-F for the year ended December 31,
2023 filed with the Securities and Exchange Commission on
April 29, 2024.
We have recently received the first instance court's verdict.
The court affirmed termination of the business cooperation
agreement on December 31, 2023, and
ordered Xinjiang Daqo to compensate the plaintiffs for their losses
arising from rents and employee salaries in the amount of
RMB3.06 million, plus attorney fees
of RMB100,000. On the other hand, the
court rejected the plaintiffs' claims for compensation of their
consequential losses. As we are still within the appeal period, the
litigation's impact on Xinjiang Daqo will be contingent upon the
final verdict.
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 2007, the Company manufactures and
sells high-purity polysilicon to photovoltaic product manufactures,
who further process the polysilicon into ingots, wafers, cells and
modules for solar power solutions. The Company has a total
polysilicon nameplate capacity of 205,000 metric tons and is one of
the world's lowest cost producers of high-purity polysilicon.
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," "might," "guidance" and similar
statements. 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, all of which are difficult or
impossible to predict accurately and many of which are beyond the
Company's control. 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 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. 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.