A：Daco New Energy recorded positive Ebitda of 45.8 million US dollars and adjusted net income of 3.7 million US dollars for the third quarter of 2025.

A：The company implemented proactive measures to counteract market oversupply, resulting in a capacity rate of 40%, total production of 30,065 metric tons slightly above guidance, and a sharp rise in sales volume to 42,406 metric tons from 18,126 metric tons in the previous quarter.

A：Total production costs declined by 12 percent to 6.38 US dollars per kilogram in Q3 2025 from 7.26 US dollars per kilogram in the second quarter of 2025. Total idle facility related costs also fell to 1.18 from 1.38, driven by higher production levels.

A：President Xi announced new 2035 environmental targets which include increasing the share of renewables in total energy consumption to 30%, reaching a solar power capacity of 6 billion watts (6 GW), and achieving a total capacity of 360 GW by 2035.

A：The Chinese government is continuing its initiative to restrict low price competition in the polysilicon sector, which has improved industry fundamentals by creating expectations of consolidation and tighter supply. A meeting on the photovoltaic industry emphasized the need to strengthen industrial regulation, curbing low price competition, standardizing product quality, and promoting industry self-discipline.

A：A new mandatory national standard was released, setting energy consumption limits per unit of polysilicon production. Poly silicon manufacturers with unit energy consumption higher than 6.4 kilograms must implement corrective improvements within a specified period, failing which may result in the ordering of operations cessation.

A：Daco New Energy is well positioned to capture the long-term growth in the global solar PV market, given the strong long-term growth prospects of the solar PV industry and the expected continued role of solar power as a key driver of global energy transition and sustainable development.

A：The increase in revenue in Q3 2024 compared to Q2 2025 was primarily due to an increase in sales volume and average selling price. The gross profit increased due to a decrease in production costs, the write-off of inventory impairment provisions, and an increase in the average selling prices of polysilicon.

A：The gross margin improved in Q3 2024 compared to Q2 2025 primarily because of the increase in the average selling price of polysilicon, a decrease in production costs, and the write-off of inventory impairment provisions.

A：The operating loss decreased from $115 million in Q2 2025 to $20.3 million in Q3 2024. This decrease was primarily due to the increase in the average selling price of polysilicon, a decrease in production costs, and the write-off of inventory impairment provisions. General and administrative expenses and research and development expenses also played a role in the overall loss, with a non-cash share-based compensation cost and lower R&D expenses in Q3 2024 contributing to the reduction in loss.

A：For the nine months ended September 30, 2025, the company experienced net cash used in operating activities of $50 million and net cash used in investing activities of $448.9 million. The investing activities include $120.3 million for the purchase of PP&E and $328.6 million in net purchase of short-term investments and fixed-term deposits.

A：The company acknowledges that despite the exit of some capacity, there is still a relative oversupply compared to demand. The expectation is that companies will not operate at full utilization rates until demand increases again, in the short to midterm. The industry is trying to balance production volume with demand, which means not all companies will be operating at maximum capacity until demand catches up.

A：The key focus for the industry in the near term is on the consolidation of companies and the draft on the new mandatory energy standard, which is seen as a positive catalyst.

A：The consolidation agreement among the remaining players is still being discussed, and more details are awaited before it can be announced to investors. The company is pushing toward an agreement and hopes to finalize it soon, as a successful consolidation could lead to further price increases.

A：There is no specific information about performance bonds or similar mechanisms to ensure that players adhere to the quota volumes agreed upon in the consolidation. However, the company is working towards an agreement and believes that the sooner the consolidation is completed, the better it will be for price recovery and further upticks in prices.

A：The company expects prices to tick up after the consolidation is completed, likely in phases, with prices rising around 60 RMB per kilogram and potentially higher if more production capacity is exited by the industry. The supply chain is expected to remain stable in the fourth quarter due to prices being set in the third quarter.

A：The company anticipates that fourth-quarter costs will continue to decline compared to the third quarter, with a decrease in the low single-digit range. They have seen significant cost reductions in the current quarter due to efforts in optimization, silicon powder usage, and benefits from production increases and lower metal pricing.

A：The buyback program has not started yet because the company wanted to purchase more shares and monitor the market closely, especially in light of the uncertainty around initial investment costs for the consolidation. The company is waiting for clarity on the amount to be spent in the consolidation process before resuming the share repurchase.

A：The unit electricity consumption per kilogram of product ranges between 52 to 55 kilowatt hours (kW) at the company's two facilities.

A：The company has raised its production plan by 10% per quarter level, which is against the industry-wide production trends. The positive demand outlook is likely due to factors that are not explicitly detailed in the transcript.

A：The company is raising production due to an optimistic outlook for the future, expectations of consolidation in the industry, and the belief that increasing production volume will further reduce production costs.

A：Yes, a 50% utilization rate would be a reasonable assumption for the production plan in 2026.

A：Based on the current market environment, the projected gross margin is in a range of low single digits to mid single digits.

A：It is still a bit early to assess sales from inventory, but the company does anticipate selling down additional inventory based on the current market conditions.

A：The expectation is for solar installations in China to be relatively stable or to show low single-digit growth compared to the current year. The forecast for additional installations in China this year is in the range of around 2.2 to 5.0 GW, suggesting a likely range of around 270 to 280 GW for next year.