Recently, Daqo Energy (SH:688303) stated during investor research that according to the company’s financial report, the unit cost calculation is based on the cost of sales. In the first half of 2025, the company implemented a production reduction strategy and proactively adjusted shipment volumes in response to market conditions. Fixed costs such as labor and depreciation related to idled production lines were allocated to the current period’s sales volume, leading to an increase in unit costs during this period. This fluctuation is a normal phenomenon under the company’s short-term operational strategy adjustments and will not impact its long-term cost control capabilities or core competitiveness.
