Daqo New Energy Announces Three-Year High-Purity Polysilicon Supply Agreement with Gaojing Solar

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 it signed a three-year high-purity polysilicon supply agreement with Gaojing Solar Energy Technology Co., LTD ("Gaojing"). Gaojing is a newly established advanced solar wafer manufacturer co-founded by a team of senior experts with extensive experience in the solar industry, IDG Capital, a leading investment firm, and Zhuhai's leading state-owned enterprise Huafa Group.

The execution of Gaojing's plan for a 50GW large-size solar wafer capacity will be carried out in three phases. Construction of the first phase, with a production capacity of 15GW, has already begun and is expected to be complete by the end of June 2021 and fully operational by September 2021. Phase II is expected to reach full production capacity of 15GW in 2022, and Phase III will bring additional 20GW of the plan online by the end of 2023.

Under the supply agreement, Daqo New Energy will provide Gaojing with high-purity mono-grade polysilicon in a total amount of 45,900 MT between June 2021 and May 2024. Actual prices will be negotiated by both parties monthly according to market conditions. As part of the supply agreement, Gaojing will make an advance payment to Daqo New Energy.

Mr. Zhiqun Xu, Chairman and General Manager of Gaojing, commented, "We are very pleased to establish such a meaningful cooperation with Daqo New Energy, one of the most important high-purity polysilicon providers in the solar industry. We see market opportunities for 210mm large-size solar wafers in the next few years. We believe our advantages in cost and quality thanks in part to Daqo's support on the high-quality raw material side will enable us to compete as a leader in the solar wafers sector going forward."

Mr. Longgen Zhang, Chief Executive Officer of Daqo New Energy, commented, "We are very pleased to enter into this long-term contract with such an ambitious customer with a visionary strategy in terms of capacity plans and innovation. As a leading high-purity polysilicon provider, we will continue to support our customers with growing capacity and superior quality and work closely with them to better serve the rapid growth of the solar PV market."