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Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2024 Results

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2 years ago

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SHANGHAI, Feb. 27, 2025 /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 its unaudited financial results for the fourth quarter and fiscal year of 2024.

Fourth Quarter 2024 Financial and Operating Highlights

Total cash, short-term investments, bank note receivables and fixed term bank deposit balance was $2.2 billion at the end of Q4 2024, compared to $2.4 billion at the end of Q3 2024Polysilicon production volume was 34,236 MT in Q4 2024, compared to 43,592 MT in Q3 2024Polysilicon sales volume was 42,191 MT in Q4 2024, compared to 42,101 MT in Q3 2024Polysilicon average total production cost(1) was $6.81/kg in Q4 2024, compared to $6.61/kg in Q3 2024Polysilicon average cash cost(1) was $5.04/kg in Q4 2024, compared to $5.34/kg in Q3 2024Polysilicon average selling price (ASP) was $4.62/kg in Q4 2024, compared to $4.69/kg in Q3 2024Revenue was $195.4 million in Q4 2024, compared to $198.5 million in Q3 2024Gross loss was $65.3 million in Q4 2024, compared to $60.6 million in Q3 2024. Gross margin was -33.4% in Q4 2024, compared to -30.5% in Q3 2024Non-cash impairment charge related to long-lived assets amounted to $175.6 million in Q4 2024Net loss attributable to Daqo New Energy Corp. shareholders was $180.2 million in Q4 2024, compared to $60.7 million in Q3 2024Loss per basic American Depositary Share (ADS)(3) was $2.71 in Q4 2024, compared to $0.92 in Q3 2024Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $170.7 million in Q4 2024, compared to $39.4 million in Q3 2024Adjusted loss per basic ADS(3) (non-GAAP)(2) was $2.56 in Q4 2024, compared to $0.59 in Q3 2024EBITDA (non-GAAP)(2) was –$236.5 million in Q4 2024, compared to –$34.3 million in Q3 2024. EBITDA margin (non-GAAP)(2) was -121.1% in Q4 2024, compared to -17.3% in Q3 2024

 

Three months ended

US$ millions

except as indicated otherwise

December.
31, 2024

September.
30, 2024

December.
31, 2023

Revenues

195.4

198.5

476.3

Gross (loss)/profit

(65.3)

(60.6)

87.2

Gross margin

(33.4) %

(30.5) %

18.3 %

(Loss)/income from operations

(300.9)

(98.0)

83.3

Net (loss)/income attributable to Daqo New Energy
Corp. shareholders

(180.2)

(60.7)

53.3

(Loss)/Earnings per basic ADS(3) ($ per ADS)

(2.71)

(0.92)

0.76

Adjusted net (loss)/income (non-GAAP)(2)
attributable to Daqo New Energy Corp. shareholders

(170.6)

(39.4)

74.3

Adjusted (loss)/earnings per basic ADS(3) (non-
GAAP)(2) ($ per ADS) 

(2.56)

(0.59)

1.06

EBITDA (non-GAAP)(2)

(236.5)

(34.3)

128.2

EBITDA margin (non-GAAP)(2)

(121.1) %

(17.3) %

26.9 %

Polysilicon sales volume (MT) 

42,191

42,101

61,014

Polysilicon average total production cost ($/kg)(1)

6.81

6.61

6.50

Polysilicon average cash cost (excl. dep’n) ($/kg)(1)

5.04

5.34

5.72

Full Year 2024 Financial and Operating Highlights

Polysilicon production volume was 205,068 MT in 2024, compared to 197,831 MT in 2023Polysilicon sales volume was 181,362 MT in 2024, compared to 200,002 MT in 2023Revenue was $1,029.1 million in 2024, compared to $2,307.7 million in 2023Gross loss was $212.9 million in 2024, compared to gross profit of $920.7 million in 2023. Gross margin was -20.7% in 2024, compared to 39.9% in 2023Net loss attributable to Daqo New Energy Corp. shareholders was $345.2 million in 2024, compared to net income attributable to Daqo New Energy Corp. shareholders of $429.5 million in 2023. Loss per basic ADS was $5.22 in 2024, compared to earnings per basic ADS of $5.75 in 2023EBITDA (non-GAAP)(2) was –$338.8 million in 2024, compared to $918.6 million in 2023. EBITDA margin (non-GAAP)(2) was -32.9% in 2024, compared to 39.8% in 2023Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was $272.8 million in 2024, compared to adjusted net income (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders of $563.1 million in 2023Adjusted loss per basic ADS(3) (non-GAAP)(2) was $4.12 in 2024, compared to adjusted earnings per basic ADS (non-GAAP) of $7.54 in 2023

Notes:

(1) Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable costs relating to production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation and non-cash share-based compensation, divided by the production volume in the period indicated.

(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For more information on these non-GAAP financial measures, please see the section captioned “Use of Non-GAAP Financial Measures” and the tables captioned “Reconciliation of non-GAAP financial measures to comparable US GAAP measures” set forth at the end of this press release.

(3) ADS means American Depositary Share. One (1) ADS represents five (5) ordinary shares.

Management Remarks

Mr. Xiang Xu, Chairman and CEO of the Company, commented, “In 2024, we faced a challenging market environment with excess capacity in the solar PV industry leading to sharp price declines across the entire value chain. We proactively managed these difficulties by curtailing polysilicon production to reduce cash burn, particularly in the third and fourth quarters. Nevertheless, we reached an annual polysilicon production volume of 205,068 MT in 2024, meeting our guidance of 200,000 MT to 210,000 MT, which represented an increase of 3.7% year-over-year compared to 197,831 MT in 2023. Our N-type product mix increased significantly from approximately 40% of total production in 2023 to 70% in 2024. We sold 181,362 MT in 2024, ending the year at a reasonable inventory level. Despite solid growth in demand for solar PV products globally, the mismatch between demand and supply drove prices lower in 2024 even below cash cost. Overall, our polysilicon ASPs decreased significantly from $11.48/kg in 2023 to $5.66/kg in 2024. Revenue came in at $1.0 billion compared to $2.3 billion in 2023 as a result of lower ASPs as well as lower sales volume. As polysilicon ASPs fell below production cost starting in the second quarter of 2024, we recorded a non-cash provision for inventory impairment expense, with a negative gross margin of 20.7% for 2024. Due to the continuous negative gross margin, we recorded a non-cash long-lived assets impairment charge of $175.6 million for the quarter related to our older polysilicon production lines. Despite the losses, Daqo New Energy continued to maintain a strong balance sheet and ample cash reserves. At the end of 2024, the Company had a cash balance of $1.0 billion, short-term investments of $10 million, bank notes receivables of $55 million, and a fixed term bank deposit balance of $1.1 billion. Overall, the company maintains strong liquidity with a balance of quick assets of $2.2 billion, which can be readily converted to cash if needed. This solid financial position ensures we are well-equipped to navigate the market downturn and remain strategically resilient.”

“On the operational front, during the fourth quarter, the Company continued to operate at a lower utilization rate of 40%-50% of our nameplate capacity in light of weak market prices. The total production volume at our two polysilicon facilities for the quarter was 34,236 MT, further decreasing from the third quarter by 9,356 MT. Meanwhile, we intensified our efforts to reduce inventory, and our sales volume reached 42,191 MT in the fourth quarter, compared to 42,101 MT in the previous quarter. As the result of lower utilization, idle-facility related cost for the quarter was approximately $1.02/kg, which was primarily related to non-cash depreciation expense. Overall polysilicon unit production cost edged up 3% sequentially to an average of $6.81/kg. However, thanks to our relentless efforts to improve operational efficiency, our cash cost declined further to $5.04/kg, a 6% quarter-over-quarter decline compared to $5.34/kg in the third quarter.”

“Due to the current market pricing environment, we currently expect total polysilicon production volume in the first quarter of 2025 to be approximately 25,000 MT to 28,000 MT. We plan to maintain a relatively low utilization rate in 2025 until a turning point emerges in the sector. As a result, we currently anticipate full year production volume in 2025 to be approximately 110,000 MT to 140,000 MT.”

“Discussions on industry self-regulation measures have been ongoing since the fourth quarter. Meanwhile, the polysilicon market remained sluggish heading into the quarter as downstream customers continued drawing down accumulated inventory and coping with lower wafer capacity utilization rates of approximately 50%. Polysilicon pricing remained stable within this cyclical bottom range of RMB 36-42/kg throughout the quarter. In November and December, leading polysilicon producers reduced production to offset the higher hydro-electricity cost during the winter season and to mitigate inventory risks. As such, industry production of polysilicon continued to decline month-over-month. According to industry statistics, the total production volume in China descended to approximately 100,000 MT per month in December, the lowest level in the year. On December 26, polysilicon futures trading officially launched, with the initial benchmark price set at RMB 38.6/kg. Although some prices were quoted higher at RMB 42-43/kg, futures trading volumes remained small and had limited impact on spot pricing. On a positive note, new solar PV capacity in China reached a record high of 68 GW in December, which was beyond expectation and reinforced market confidence in the resilience of solar PV in the short run and market potential in the medium to long term.”

“Despite the significant challenges resulting from overcapacity in the solar PV industry, we have seen proactive initiatives to restore the industry’s healthy development. On December 6, 2024, led by the China Photovoltaic Industry Association (CPIA), our Company, along with other major solar PV manufacturers, have reached consensus that implementing self-discipline would be fundamental to mitigating the irrational competition amid falling prices and heightened global trade pressures. Moreover, the solar PV industry continued to show strong demand prospects. For the year of 2024, China’s newly installed solar PV capacity grew 28% year-over-year to 277 GW, which not only hit a record high but also exceeded market expectations. We remain optimistic that as supply adjusts to more rational levels, we will see a better balance between supply and demand this year. In the long run, as a renewable energy source and one of the lowest-cost sources of electricity worldwide, solar power will continue to be a key driver of the global energy transition and sustainable development. Looking ahead, Daqo New Energy will capitalize on the long-term growth in the global solar PV market and strengthen its competitive edge by enhancing its higher-efficiency N-type technology and optimizing its cost structure through digital transformation and AI adoption. As one of the world’s lowest-cost producers with the highest quality N-type product, a strong balance sheet and no financial debt, we believe we are well positioned to weather the current market downturn and emerge as one of the leaders in the industry to capture future growth.”

Outlook and guidance

The Company expects to produce approximately 25,000MT to 28,000MT of polysilicon during the first quarter of 2025. The Company expects to produce approximately 110,000MT to 140,000MT of polysilicon for the full year of 2025, inclusive of the impact of the Company’s annual facility maintenance.

This outlook reflects Daqo New Energy’s current and preliminary view as of the date of this press release and may be subject to changes. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.

Fourth Quarter 2024 Results

Revenues

Revenues were $195.4 million, compared to $198.5 million in the third quarter of 2024 and $476.3 million in the fourth quarter of 2023. The decrease in revenues compared to the third quarter of 2024 was primarily due to a decrease in ASP, mitigated by an increase in sales volume.

Gross (loss)/ profit and margin

Gross loss was $65.3 million, compared to $60.6 million in the third quarter of 2024 and gross profit of $87.2 million in the fourth quarter of 2023. Gross margin was -33.4%, compared to -30.5% in the third quarter of 2024 and 18.3% in the fourth quarter of 2023. The decrease in gross margin compared to the third quarter of 2024 was mainly due to the decrease in ASP.

Selling, general and administrative expenses

Selling, general and administrative expenses were $29.4 million, compared to $37.7 million in the third quarter of 2024 and $39.0 million in the fourth quarter of 2023. SG&A expenses during the fourth quarter of 2024 included $14.9 million in non-cash share-based compensation expense related to the Company’s share incentive plans, compared to $18.9 million in the third quarter of 2024.

Allowance for expected credit loss of receivables

The Company recognized $18.1 million non-cash expense related to allowance for expected credit loss of receivables in the fourth quarter, mainly due to uncertainty on the recoverability of long-aged receivables.

Long-lived assets impairment

The Company recognized a $175.6 million fixed assets impairment loss mainly related to its older polysilicon production facilities in the fourth quarter of 2024, mainly due to the continuous downward trend in the polysilicon selling prices that impaired the recoverability of carrying amounts of these assets.

Research and development expenses

Research and development (R&D) expenses were $0.4 million, compared to $0.8 million in the third quarter of 2024 and $3.3 million in the fourth quarter of 2023. Research and development expenses reflect R&D activities that take place during the quarter and can vary from period to period.

(Loss)/income from operations and operating margin

As a result of the abovementioned, loss from operations was $300.9 million, compared to $98.0 million in the third quarter of 2024 and income from operations of $83.3 million in the fourth quarter of 2023.

Operating margin was -154.0%, compared to -49.4% in the third quarter of 2024 and 17.5% in the fourth quarter of 2023.

Net (loss)/income attributable to Daqo New Energy Corp. shareholders and earnings/(loss) per ADS

As a result of the abovementioned, net loss attributable to Daqo New Energy Corp. shareholders was $180.2 million, compared to $60.7 million in the third quarter of 2024 and net income of $53.3 million in the fourth quarter of 2023.

Loss per basic American Depository Share (ADS) was $2.71, compared to $0.92 in the third quarter of 2024, and income per ADS of $0.76 in the fourth quarter of 2023.

Adjusted net (loss)/income (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted (loss)/earnings per ADS(non-GAAP)

As a result of the aforementioned, adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $170.6 million, compared to $39.4 million in the third quarter of 2024 and adjusted net income of $74.3 million in the fourth quarter of 2023.

Adjusted loss per basic American Depository Share (ADS) was $2.56 compared to $0.59 in the third quarter of 2024, and adjusted earnings per basic ADS of $1.06 in the fourth quarter of 2023.

EBITDA (non-GAAP)  

EBITDA (non-GAAP) was –$236.5 million, compared to –$34.3 million in the third quarter of 2024 and $128.2 million in the fourth quarter of 2023. EBITDA margin (non-GAAP) was -121.1%, compared to -17.3% in the third quarter of 2024 and 26.9% in the fourth quarter of 2023.

Full Year 2024 Results

Revenues

Revenues were $1,029.1 million, compared to $2,307.7 million in 2023. The decrease was primarily due to much lower polysilicon ASPs, further compounded by lower sales volume.

Gross (loss)/ profit and margin

Gross loss was $212.9 million, compared to gross profit of $920.7 million in 2023. Gross margin was -20.7%, compared to 39.9% in 2023. The decrease in gross profit was primarily due to lower ASPs and inventory impairment. For the year of 2024, the company recorded $81.4 million in inventory impairment expenses, compared to $0.5 million in 2023.

Selling, general and administrative expenses

Selling, general and administrative expenses were $143.1 million, compared to $213.2 million in 2023. The decrease was primarily due to the reduction in non-cash share-based compensation cost related to the Company’s share incentive plan, which was $72.4 million and $121.0 million in 2024 and 2023, respectively.

Long-lived assets impairment

The Company recognized $175.6 million fixed assets impairment loss mainly related to its older polysilicon facilities in 2024, mainly due to the continuous downward trend of the polysilicon selling prices that impaired the recoverability of carrying amounts of these assets.

Research and development expenses

Research and development (R&D) expenses were $4.6 million, compared to $10.1 million in 2023. Research and development expenses reflect R&D activities that took place during the period and can vary from period to period.

(Loss)/income from operations and operating margin

As a result of the foregoing, loss from operations was $564.1 million, compared to income from operations of $783.4 million in 2023. Operating margin was -54.8%, compared to 33.9% in 2023.

Interest income, net

Interest income, net was $29.4 million, compared to $52.3 million in 2023. The decrease in interest income was due to lower cash at bank balance as well as lower bank interest rate.

Net (loss)/income attributable to Daqo New Energy Corp. shareholders and earnings/(loss) per ADS

Net loss attributable to Daqo New Energy Corp. shareholders was $345.2 million, compared to net income of $429.5 million in 2023. Loss per basic ADS were $5.22, compared to earnings per ADS of $5.75 in 2023.

Adjusted net (loss)/income (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted (loss)/earnings per ADS(non-GAAP)

Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $272.8 million, compared to adjusted net income of $563.1 million in 2023. Adjusted loss per basic ADS (non-GAAP) were $4.12, compared to adjusted earnings per basic ADS (non-GAAP) $7.54 in 2023.

EBITDA (non-GAAP)

EBITDA (non-GAAP) was –$338.8 million, compared to $918.6 million in 2023. EBITDA margin (non-GAAP) was -32.9%, compared to 39.8% in 2023.

Financial Condition

As of December 31, 2024, the Company had $1,038.3 million in cash, cash equivalents and restricted cash, compared to $853.4 million as of September 30, 2024 and $3,048.0 million as of December 31, 2023. As of December 31, 2024, the notes receivable balance was $55.2 million, compared to $84.5 million as of September 30, 2024 and $116.4 million as of December 31, 2023. Notes receivable represents bank notes with maturity within six months. As of December 31, 2024, the balance of fixed term deposits within one year was $1,087.2 million, compared to $1,215.2 million as of September 30, 2024 and nil as of December 31, 2023.

Cash Flows

For the twelve months ended December 31, 2024, net cash used in operating activities was $437.7 million, compared to $1,616.0 million provided by operating activities in the same period of 2023. The decrease was primarily due to lower revenues and gross margin.

For the twelve months ended December 31, 2024, net cash used in investing activities was $1,478.5 million, compared to $1,196.0 million in the same period of 2023. The net cash used in investing activities in 2024 was primarily related to the capital expenditures on the Company’s 5A and 5B polysilicon expansion projects in Baotou City, Inner Mongolia and purchases of short-term investments and fixed term deposits.

For the twelve months ended December 31, 2024, net cash used in financing activities was $47.4 million, compared to $795.4 million in the same period of 2023. The net cash used in financing activities in 2024 was primarily related to $35.8 million in dividend payment made by the Company’s subsidiary, Xinjiang Daqo, to its minority shareholders.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company’s results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company’s operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management’s use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company’s operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.

The Company uses EBITDA, which represents earnings before interest, income taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company’s core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.

A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document.

Conference Call

The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on February 27, 2025 (9:00 PM Beijing / Hong Kong time on the same day).

The dial-in details for the earnings conference call are as follows:

Participant dial in (U.S. toll free): +1-888-346-8982
Participant international dial in: +1-412-902-4272
China mainland toll free: 4001-201203
Hong Kong toll free: 800-905945
Hong Kong local toll: +852-301-84992

Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call.

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Qk5TGKkD

A replay of the call will be available 1 hour after the conclusion of the conference call through March 6, 2025. The dial in details for the conference call replay are as follows:

U.S. toll free: +1-877-344-7529
International toll: +1-412-317-0088
Canada toll free: 855-669-9658
Replay access code: 3285522

To access the replay through an international dial-in number, please select the link below.
https://services.choruscall.com/ccforms/replay.html

Participants will be asked to provide their name and company name upon entering the call.

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 manufacturers, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world’s lowest cost producers of high-purity polysilicon.

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,” “guidance” and similar statements. Among other things, the outlook for the first quarter and the full year of 2025 and quotations from management in these announcements, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking 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; the Company’s ability to lower its production costs; and changes in political and regulatory environment. Further information regarding these and other risks is included in the reports or documents 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.

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statement of Operations

(US dollars in thousands, except ADS and per ADS data)

Three months ended

Year ended Dec 31

Dec 31,
2024

Sep 30,
2024

Dec 31,
2023

2024

2023

Revenues    

195,359

198,496

476,298

1,029,080

2,307,695

Cost of revenues

(260,622)

(259,090)

(389,102)

(1,242,012)

(1,387,045)

Gross (loss)/profit

(65,263)

(60,594)

87,196

(212,932)

920,650

Operating expenses

Selling, general and administrative
  expenses

(29,402)

(37,727)

(39,004)

(143,089)

(213,241)

Long-lived assets impairment

(175,627)

–

–

(175,627)

–

Allowance for expected credit loss

(18,072)

–

–

(18,072)

–

Research and development
  expenses

(372)

(813)

(3,250)

(4,559)

(10,116)

Other operating (expense)/income

(12,203)

1,092

38,349

(9,814)

86,137

Total operating expenses

(235,676)

(37,448)

(3,905)

(351,160)

(137,220)

(Loss)/income from operations

(300,939)

(98,042)

83,291

(564,092)

783,430

Interest income, net

6,761

1,604

13,772

29,364

52,302

Foreign exchange gain/(loss)

49

(752)

(796)

(2,378)

(17,367)

Investments income

3,644

8,253

253

19,046

109

(Loss)/Income before income taxes

(290,485)

(88,937)

96,520

(518,060)

818,474

Income tax benefit/(expense)

48,973

12,007

(18,352)

69,907

(165,588)

Net (loss)/income

(241,512)

(76,930)

78,168

(448,153)

652,886

Net (loss)/income attributable to
non-controlling interest

(61,330)

(16,206)

24,837

(102,938)

223,341

Net (loss)/income attributable to
  Daqo New Energy Corp.
  shareholders

(180,182)

(60,724)

53,331

(345,215)

429,545

(Loss)/earnings per ADS

(2.71)

(0.92)

0.76

(5.22)

5.75

  Basic

  Diluted

(2.71)

(0.92)

0.76

(5.22)

5.73

 

Weighted average ADS outstanding

Basic

66,609,799

66,306,870

69,862,986

66,158,657

74,717,201

Diluted

66,609,799

66,306,870

69,905,271

66,158,657

74,963,535

 

 

Daqo New Energy Corp.

Unaudited Condensed Consolidated Balance Sheets

(US dollars in thousands)

Dec. 31, 2024

Sep. 30, 2024

Dec. 31, 2023

ASSETS:

Current Assets:

Cash, cash equivalents and restricted cash

1,038,349

853,401

3,047,956

Short-term investments

9,619

244,982

–

Accounts and notes receivable

55,171

84,507

116,358

Inventories

149,939

206,877

173,271

Fixed term deposit within one year

1,087,210

1,215,165

–

Other current assets

291,259

292,610

238,993

Total current assets

2,631,547

2,897,542

3,576,578

Property, plant and equipment, net

3,499,210

3,903,436

3,626,423

Prepaid land use right

152,869

159,853

150,358

Fixed term deposit over one year

27,636

28,536

–

Other non-current assets

106,981

59,338

73,507

TOTAL ASSETS

6,418,243

7,048,705

7,426,866

Current liabilities:

Accounts payable and notes payable

33,270

40,860

92,879

Advances from customers-short term portion

37,192

56,240

148,984

Payables for purchases of property, plant and
  equipment

406,743

454,364

421,024

Other current liabilities

44,032

77,597

173,542

Total current liabilities

521,237

629,061

836,429

Advance from customers – long term portion

21,484

76,734

113,857

Other non-current liabilities

17,658

18,489

28,296

TOTAL LIABILITIES

560,379

724,284

978,582

 

EQUITY:

Total Daqo New Energy Corp.’s shareholders’
  equity

4,361,193

4,705,832

4,761,907

Non-controlling interest

1,496,671

1,618,589

1,686,377

Total equity

5,857,864

6,324,421

6,448,284

TOTAL LIABILITIES & EQUITY

6,418,243

7,048,705

7,426,866

 

 

Daqo New Energy Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

(US dollars in thousands)

For the year ended December 31,

2024

2023

Operating Activities:

Net (loss)/income

(448,153)

652,886

Adjustments to reconcile net income to net cash provided by
operating activities

565,535

305,359

Changes in operating assets and liabilities

(555,102)

657,797

Net cash (used in)/provided by operating activities

(437,720)

1,616,042

Investing activities:

Purchases of property, plant and equipment

(356,777)

(1,110,738)

Purchases of land use right

(10,091)

(72,147)

Purchase and redemption of short-term investments and fixed-term
deposits

(1,111,615)

(13,070)

Net cash used in investing activities

(1,478,483)

(1,195,955)

Financing activities:

Net cash used in financing activities

(47,358)

(795,398)

Effect of exchange rate changes

(46,046)

(97,084)

Net decrease in cash, cash equivalents and restricted cash

(2,009,607)

(472,395)

Cash, cash equivalents and restricted cash at the beginning of the
period

3,047,956

3,520,351

Cash, cash equivalents and restricted cash at the end of the period

1,038,349

3,047,956

 

 

Daqo New Energy Corp.

Reconciliation of non-GAAP financial measures to comparable US GAAP measures

(US dollars in thousands)

Three months ended

Year ended Dec 31

Dec 31,
2024

Sep 30,
2024

Dec 31,
2023

2024

2023

Net (loss)/income

(241,512)

(76,930)

78,168

(448,153)

652,886

Income tax benefit/(expense)

(48,973)

(12,007)

18,352

(69,907)

165,588

Interest income, net

(6,761)

(1,604)

(13,772)

(29,364)

(52,302)

Depreciation & Amortization

60,740

56,218

45,455

208,585

152,454

EBITDA (non-GAAP)

(236,506)

(34,323)

128,203

(338,839)

918,626

EBITDA margin (non-GAAP)

-121.1 %

-17.3 %

26.9 %

-32.9 %

39.8 %

Three months ended

Year ended Dec 31

Dec 31,
2024

Sep 30,
2024

Dec 31,
2023

2024

2023

Net (loss)/income attributable to
  Daqo New Energy Corp.
  shareholders

(180,182)

(60,724)

53,331

(345,215)

429,545

Share-based compensation

9,532

21,312

20,927

72,382

133,520

Adjusted net (loss)/income
  attributable to Daqo New
  Energy Corp. shareholders
  (non-GAAP)

(170,650)

(39,412)

74,258

(272,833)

563,065

Adjusted (loss)/earnings per
  basic ADS (non-GAAP)

(2.56)

(0.59)

1.06

(4.12)

7.54

Adjusted (loss)/earnings per
  diluted ADS (non-GAAP)

(2.56)

(0.59)

1.06

(4.12)

7.51

 

 

View original content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-fourth-quarter-and-fiscal-year-2024-results-302387179.html

SOURCE Daqo New Energy Corp.

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Korean Buyers Invited to Connect with Chinese Suppliers at C-TOUCH & DISPLAY and FILM & TAPE EXPO 2026

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38 minutes ago

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October 20, 2026

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SHENZHEN, China, Oct. 20, 2026 /PRNewswire/ — Featuring Korea Day business matchmaking, next-generation display technologies and advanced functional materials, the October exhibitions offer Korean industry professionals new opportunities to explore suppliers and strengthen cross-border partnerships.

As demand grows for advanced displays, semiconductor technologies and high-performance materials, C-TOUCH & DISPLAY SHENZHEN 2026 and FILM & TAPE EXPO 2026 will welcome Korean buyers and industry professionals to Shenzhen, China, from October 27–29. The exhibitions will provide opportunities to discover new technologies, meet Chinese manufacturers and explore business partnerships across the electronics, display, automotive and advanced materials supply chains.

C-TOUCH: Exploring Next-Generation Display and Semiconductor Technologies

C-TOUCH & DISPLAY SHENZHEN 2026 will showcase technologies spanning OLED, Micro LED, flexible displays, touch panels, e-paper, commercial displays, automotive displays and AI+AR smart glasses. As display technologies converge with AI computing, optical communications and semiconductor packaging, the exhibition will connect Korean visitors with suppliers developing materials, components, manufacturing equipment and integrated solutions.

A key highlight is the TGV Glass Substrate Advanced Packaging Zone, where visitors can explore eight major process stages, including laser induction, etching, chemical vapor deposition (CVD), physical vapor deposition (PVD), electroplating, chemical mechanical planarization (CMP), coating and photolithography.

FILM & TAPE EXPO: Functional Materials for Electronics and Advanced Manufacturing

FILM & TAPE EXPO 2026 will bring together suppliers of functional films, optical films, protective and release films, polyimide (PI) films, adhesive tapes, optical clear adhesives (OCA), thermal-management materials and precision converting equipment.

The exhibition will also cover coating, laminating, slitting, rewinding, inspection and die-cutting technologies. These solutions support applications across consumer electronics, semiconductors, automotive electronics, batteries and energy storage, PCB/FPC and industrial manufacturing.

Korea Day: Connecting Korean Buyers with Chinese Suppliers

A major opportunity for Korean visitors will be Korea Day, a dedicated buyer–supplier matchmaking initiative designed to facilitate business connections between Korean industry professionals and Chinese suppliers.

The program will provide a focused setting for buyers to communicate their sourcing needs, explore relevant products and technologies, and discuss potential cooperation directly with suppliers. For companies seeking new sourcing options, manufacturing partners or materials for product development, Korea Day can help make exhibition visits more targeted and productive.

Easier Travel: China’s 30-Day Visa-Free Policy for South Korean Citizens

Travel planning has also become more convenient for eligible Korean visitors. Under China’s current unilateral visa-free policy, South Korean citizens holding ordinary passports may enter China without a visa for stays of up to 30 days for business, tourism, family or friends visits, exchange visits and transit.

The policy has been extended through December 31, 2026. Visitors should consult the Chinese Embassy in the Republic of Korea for the latest official guidance.

Register to Visit Shenzhen This October

C-TOUCH & DISPLAY SHENZHEN 2026 and FILM & TAPE EXPO 2026 will take place October 27–29 at Shenzhen World Exhibition & Convention Center in Bao’an, Shenzhen, China.

C-TOUCH & DISPLAY SHENZHEN 2026: Pre-register here

FILM & TAPE EXPO 2026: Pre-register here

About RX Kuozhan

RX Kuozhan is a joint venture between Reed Exhibitions and Kuozhan Exhibition Services (Shanghai) Co., Ltd., established in 2015. The company organizes a portfolio of industry-leading exhibitions serving the display, touch technology, functional films, adhesive materials, commercial display and advanced materials sectors. Through its exhibitions and industry engagement initiatives, RX Kuozhan connects manufacturers, technology providers, buyers and industry professionals, facilitating business partnerships, technology exchange and cross-industry collaboration in China and international markets.

For more information, please visit C-TOUCH & DISPLAY SHENZHEN and FILM & TAPE EXPO.

View original content:https://www.prnewswire.com/apac/news-releases/korean-buyers-invited-to-connect-with-chinese-suppliers-at-c-touch–display-and-film–tape-expo-2026-302912105.html

SOURCE RX Kuozhan

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What’s Next for Webull Corporation Shareholders After 19.09% Stock Drop? Glancy Prongay Wolke & Rotter LLP Explains Securities Fraud Class Action Lead Plaintiff Deadline

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38 minutes ago

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October 20, 2026

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Complaint alleges Webull Corporation misled investors between April 26, 2025 and October 6, 2026; investors may seek lead plaintiff role by December 7, 2026

LOS ANGELES, Oct. 19, 2026 /PRNewswire/ — Glancy Prongay Wolke & Rotter LLP (“Glancy”) announced today that the class action lawsuit covers investors who bought Webull Corporation (“Webull” or the “Company”) (NASDAQ: BULL) securities between April 26, 2025 and October 6, 2026. The Webull Corporation case, Ward v. Webull Corporation et al., was filed on October 8, 2026 in the U.S. District Court Middle District of Florida (Tampa) (Case No. 8:26-cv-03052).

Investors who suffered losses on Webull Corporation investments can submit their Webull Corporation loss information here before the December 7, 2026 lead plaintiff deadline.

Key dates in the Webull Corporation case

Class period: April 26, 2025 to October 6, 2026Complaint filed: October 8, 2026Lead plaintiff deadline: December 7, 2026

What happened?

On October 7, 2026, the bipartisan House Select Committee on China issued a report which found “a profound gap” between Webull’s public marketing as “an American company” and actual control of the alleged St. Petersburg, Florida-based firm. The committee reportedly found “Webull’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People’s Republic of China.” The Select Committee also reportedly found that Webull initially told the Select Committee that it had no offices or employees in China, while Webull’s mainland China subsidiary in fact employed approximately 863 employees, or 62% of Webull’s global workforce.

Webull Corporation stock fell $1.39 or 19.09%, to close at $5.89 on October 7, 2026, thereby injuring investors.

What is the Webull Corporation lawsuit about?

The Webull Corporation securities lawsuit alleges that, between April 26, 2025 and October 6, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Webull Corporation’s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) Webull’s mainland China operations were not limited to research and development and technical support functions, but rather Webull’s software development, data pipelines, and core engineering depended on PRC-based personnel and on infrastructure subject to Chinese law; (2) Webull’s ownership structure, technical workforce, technology infrastructure, cross-border data routing, financing, and compliance structure were structurally tied to China; (3) as a result, Webull’s representations that its principal business operations were based in the U.S. and that its U.S. customer data was insulated from non-U.S. access materially overstated Webull’s independence from the PRC; and (4) as a result, defendants’ positive statements about Webull Corporation’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

“The complaint filed against Webull Corporation alleges that, among other things, the Company failed to disclose that Webull’s mainland China operations were not limited to research and development and technical support functions, but rather Webull’s software development, data pipelines, and core engineering depended on PRC-based personnel and on infrastructure subject to Chinese law. For investors who bought during the class period, the December 7, 2026 deadline is the first major step in this case,” said Charles H. Linehan, Partner at Glancy Prongay Wolke & Rotter LLP.

What’s the next step?

Glancy Prongay Wolke & Rotter LLP is a leading national shareholder rights law firm, ready to assist Webull Corporation investors in potentially pursuing claims to recover their losses.

If you wish to serve as lead plaintiff in the Webull Corporation class action, you must move the Court no later than December 7, 2026. To learn more about your rights, visit the Webull Corporation case page, email shareholders@glancylaw.com, or call 310-201-9150 (toll-free: 888-773-9224).

You may retain counsel of your choice. If you bought Webull Corporation securities during the class period, you may take no action and remain an absent class member. No class has been certified yet in the Webull Corporation case.

Frequently Asked Questions

Who is eligible? Investors who purchased or otherwise acquired Webull Corporation securities between April 26, 2025 and October 6, 2026 and suffered losses may be members of the proposed class in the Webull Corporation shareholder lawsuit. Any class member may ask the court to appoint them lead plaintiff by December 7, 2026.

What is a lead plaintiff? In the Webull Corporation class action, the lead plaintiff is the investor, or group of investors, that the court appoints to represent all class members and oversee the case. Under the Private Securities Litigation Reform Act, courts generally presume the movant with the largest financial interest is the most adequate lead plaintiff.

Do I have to be lead plaintiff to recover? No. A Webull Corporation investor’s ability to share in any future recovery does not depend on serving as lead plaintiff. Webull Corporation investors may take no action and remain absent class members.

What is the deadline? Motions to serve as lead plaintiff in the Webull Corporation class action must be filed by December 7, 2026.

Does it cost anything to contact Glancy or participate in this action? Glancy represents Webull Corporation investors on a contingency fee basis, which means investors pay no attorneys’ fees unless there is a recovery. Any fees are subject to court approval and are paid from the recovery.

Can I choose my own lawyer? Yes. Webull Corporation investors may retain counsel of their choice.

Why work with Glancy on the Webull Corporation lawsuit? Glancy Prongay Wolke & Rotter LLP is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Contact Glancy about the Webull Corporation lawsuit. Prior results do not guarantee a similar outcome.

About Glancy Prongay Wolke & Rotter LLP

Glancy was named one of Law360’s Securities Groups of the Year and ranked second in total investor recoveries by ISS Securities Class Action Services in 2025.

Glancy’s successes have been widely covered by leading news and industry publications, including The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

Prior results do not guarantee a similar outcome.

Related links

Webull Corporation case page, Glancy Prongay Wolke & Rotter LLPComplaint: Ward v. Webull Corporation et al., U.S. District Court Middle District of Florida (Tampa)Webull Corporation SEC filings index, EDGARGlancy Prongay Wolke & Rotter LLP

CONTACT:
Charles H. Linehan
Glancy Prongay Wolke & Rotter LLP
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150 | Toll-free: 888-773-9224
www.glancylaw.com

Follow Glancy on LinkedIn, X, or Facebook.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE Glancy Prongay Wolke & Rotter LLP

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NetDragon Partners with Jiuzhou Culture to Establish Joint Venture

Published

38 minutes ago

on

October 20, 2026

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Takes Controlling Stake in AI Harness Business to Advance a Third Growth Engine

HONG KONG, Oct. 19, 2026 /PRNewswire/ — NetDragon Websoft Holdings Limited (“NetDragon” or the “Company”; Hong Kong Stock Code: 0777), a global leader in building internet communities, is pleased to announce that it has entered into a legally binding memorandum of understanding (“MOU”) with Jiuzhou Culture (“Jiuzhou”), a leading AIGC short drama production and distribution company in China, to establish a joint venture (“JV”) in which NetDragon will hold a 51% controlling interest. The partnership will focus on artificial intelligence technologies, AIGC-powered content creation and digital technology services, further expanding NetDragon’s AI application scenarios and commercialisation opportunities while accelerating the development of a new growth engine.

Deepening the Integration of AIGC and Content to Build a Diversified Digital Business Platform

Rapid advances in AIGC are continuing to reshape content creation, digital entertainment and software services. With the ongoing maturation of generative AI, large-scale AI models and AI agents, AI is evolving from a supporting tool into a productivity platform that can enhance the entire value chain, from content creation and production to operations and commercialisation. Through the JV Company, NetDragon and Jiuzhou will combine their complementary strengths in technology, IP, content and industry resources to accelerate the deployment of AIGC across real-world commercial applications.

Under the MOU, Jiuzhou will inject into the JV Company all intellectual property, technologies and assets relating to the AI Harness system business, laying a solid foundation for product development and commercialisation. NetDragon will contribute Hong Kong dollars cash equivalent to RMB 50 million to the JV Company, acquire a 51% shareholding interest and consolidate the JV Company’s financial results. The JV Company will focus on expanding foundational artificial intelligence software, large-scale AI models and the AI Harness system business. It is expected to serve as the first commercial validation platform in China for NetDragon’s “AI ecosystem co-creation” strategy, marking the launch of the Company’s third growth engine and laying the groundwork for the business model to be replicated and scaled across various sectors.

To accelerate the scalable commercialisation of the AI Harness business, the transaction also incorporates a multi-tiered, progressive performance-based incentive warrant scheme. NetDragon will issue 25 million unlisted warrants to Jiuzhou at an issue price of HK$0.10 per warrant share, to be granted in three tranches with initial exercise prices of HK$10, HK$12 and HK$15, respectively. The warrants will only become exercisable upon achievement of specified key performance indicators by the JV Company. Assuming full exercise of all warrants at the initial exercise prices, NetDragon will receive aggregate gross proceeds of approximately HK$314 million, which will supplement the Company’s development capital while achieving deep alignment of interests and shared equity upside with its strategic partner. 

Strengthening AI Ecosystem Synergies to Drive a Third Growth Engine

As generative AI becomes increasingly integrated into content production, digital services and global operations, NetDragon and Jiuzhou will take this collaboration as a new starting point to fully leverage their complementary strengths and accelerate the commercialisation of AI capabilities, translating technological innovation into tangible business value. In recent years, NetDragon has continued to advance its AI strategy across AI+gaming, AI+education and enterprise intelligence, while actively exploring emerging AI businesses with the potential to establish independent commercial models. Jiuzhou, meanwhile, has built deep expertise in micro-dramas and digital content, with an integrated value chain spanning copyright operations, content creation, co-production, paid distribution and official distribution. It has also continued to expand the use of AIGC across content production, creation and operations. The two parties will further explore the deep integration of AI technology with the content industry, accelerating the implementation of AI capabilities in scenarios such as content generation, AI model applications, translation and localisation, platform operations, and enterprise technology services, to build scalable and sustainable business models.

Following the launch of the MOYU AI platform in August 2026, NetDragon’s investment and controlling stake in the AI Harness business marks another important step in increasing resource allocation to its AI business and broadening its long-term growth pathways. The performance-linked equity incentive collaboration with Jiuzhou is expected to establish a new model of strategic collaboration for NetDragon, enabling the Company and its partners to grow the business together and share in the value created. Looking ahead, NetDragon will remain focused on its core AI business, deepen technological innovation and resource integration, and leverage its established strengths in gaming and education alongside the emerging growth engine of AI ecosystem co-creation. Under this three-pronged strategy, the Company aims to continuously strengthen its core competitiveness, enhance long-term investment value, and deliver sustainable returns to shareholders.

About NetDragon Websoft Holdings Limited

NetDragon Websoft Holdings Limited (HKSE: 777) is a global leader in building internet communities, with a long track record of developing and scaling multiple internet and mobile platforms that impact hundreds of millions of users. Over the desktop and mobile internet eras, NetDragon previously established China’s first online gaming portal, 17173.com, and China’s most influential smartphone app store platform, 91 Wireless.   

Established in 1999, NetDragon is one of the most reputable and well-known digital entertainment IP developers and operators in China with a history of successful flagship game titles deeply welcomed by users both at home and abroad. For more than a decade, NetDragon has also achieved success with its EdTech business both domestically and globally. Fully embracing the new AI era, NetDragon is driving its vision of “Infinite Growth” through AI-enabled digital entertainment and online learning, whilst building a systematic AI product methodology to create value growth.

NetDragon’s overseas edtech business entity, currently a U.S.-listed subsidiary named Mynd.ai, is a global leader in interactive technology and its award-winning interactive displays and software can be found in more than 2 million learning and training spaces across 126 countries. 

About Jiuzhou Culture

Founded in 2021, Jiuzhou is a leading player in the online micro-drama industry, with an integrated business model spanning copyright operations, content creation, co-production, paid distribution and official distribution. The company has established a comprehensive, end-to-end content ecosystem designed to enhance operational efficiency and unlock synergies across the value chain. Embracing technological innovation, Jiuzhou actively integrates cutting-edge technologies such as AIGC to enhance content quality and creative capabilities. Its self-developed Moss tool has accelerated AI adoption across the entire value chain, leveraging technology to advance the development of the global short drama ecosystem.

In terms of content creation, Jiuzhou has accumulated the rights to more than 4,000 short dramas and has successfully distributed over 1,000 productions. Its portfolio spans more than 20 popular genres, including contemporary drama, romance, campus life, fantasy, suspense and historical fiction, catering to the diverse entertainment preferences of audiences in China and worldwide. By combining paid content, free-to-view short dramas and international expansion, Jiuzhou has developed a distinctive business ecosystem that strengthens its competitive position and drives continued innovation in the micro-drama industry.

Internationally, the company leverages its strengths in content production, audience reach and distribution networks to bring Chinese micro-dramas to global audiences while tailoring its offerings to local tastes and cultural preferences. Its flagship international platform, ShortMax, focuses primarily on North American and European markets, offering a wide selection of localized Chinese dramas and original productions. ShortMax is now available in more than 200 countries and regions worldwide, having achieved peak monthly active users (MAU) of over 30 million, more than 90 million cumulative registered users and 200 million downloads.

View original content to download multimedia:https://www.prnewswire.com/news-releases/netdragon-partners-with-jiuzhou-culture-to-establish-joint-venture-302913397.html

SOURCE NetDragon Websoft Holdings Limited

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