Daqo New Energy’s Subsidiary Xinjiang Daqo signs strategic cooperation framework agreement with Baotou City for its future projects

Dec 20, 2021

Shanghai, China—December 20, 2021—Daqo New Energy Corp.(NYSE: DQ) ("Daqo New Energy", the "Company" or"we"), a leading manufacturer of high-purity polysilicon for theglobal solar PV industry, today announced that its subsidiary Xinjiang Daqo hadentered into a strategic cooperation framework agreement with Baotou city,in China's Inner Mongolia autonomous region, for its future projects related to polysilicon,silicon metal and silicone.

According to thestrategic cooperation framework agreement between Xinjiang Daqo and Baotoucity, Xinjiang Daqo plans to build polysilicon projects for the solar industrywith a total annual productioncapacity of 200,000 Metric Tons (MT), polysilicon projects for the semiconductorindustry with a total annual capacity of 21,000 MT, silicon metal projects witha total annual capacity of 300,000 MT and silicone projects with a total annualcapacity of 200,000 MT in Baotou city. These projects will be conducted in twophases. The first phase will start construction in the first quarter of 2022and is expected to be completed in the second quarter of 2023, and it consistsof a 100,000 MT polysilicon project for the solar industry and a 1,000 MTpolysilicon project for the semiconductor industry with an estimated totalinvestment of RMB8.55 billion. The plan and time table for the second phasewill be determined later according to market conditions. Accordingto the agreement, Xinjiang Daqo will enjoy favorable electricity rate and otherrelevant preferential treatment. Moreover, Xinjiang Daqo will be granted thehighest priority for the use of green energy within Baotou City, including thedirect supply of green energy to the new projects.

Inaddition, at the executional level, Xinjiang Daqo has entered into a projectinvestment agreement with the government of the Jiuyuan Districtof Baotou City in which the polysilicon projects will be located, and a letter of investmentintent with the government of Guyang County of Baotou City in which the metalsilicon and silicone projects will be located.

The above-mentioned agreements and letter willbecome effective upon approval by the relevant government authorities of BaotouCity and Xinjiang Daqo’s board of directors and shareholders’ meeting.

Mr. LonggenZhang, CEO of Daqo New Energy, commented, “We are very excited to have the opportunity tostrategically cooperate with Baotou City for our polysilicon expansionprojects for the solar and semiconductor industries for the next year and topotentially expand our business to silicon metal and silicone in the future.Baotou is a city with very rich energy resources and strong industrialfoundation, which will significantly benefit our future development. Inaddition, Baotou is also a city with an ambitious plan to play an importantrole in the energy transformation from traditional fossil fuel to renewableenergy, which is consistent with our mission to serve the fast-growing solar PVindustry. Our polysilicon plants in Baotou City are expected to partially userenewable energy to produce polysilicon and gradually realize ‘renewable forsolar’ in the near future.”

About Daqo New Energy Corp.

Daqo New Energy Corp.(NYSE: DQ) (“Daqo” or the “Company”) is a leading manufacturer of high-puritypolysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-puritypolysilicon to photovoltaic product manufactures, who further process thepolysilicon into ingots, wafers, cells and modules for solar power solutions.The Company has a total polysilicon nameplate capacity of105,000 metric tons and is one of the world's lowest cost producers ofhigh-purity polysilicon.

Formore information, please visit www.dqsolar.com

Daqo New EnergyCorp.

Investor Relations

Email: dqir@daqo.com

Christensen

In China

Mr. Rene Vanguestaine

Phone: +86 178 1749 0483

rvanguestaine@christensenir.com

In the U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004
Email: lbergkamp@Christensenir.com

Safe Harbor Statement

This announcementcontains forward-looking statements. These statements are made under the “safeharbor” provisions of the U.S. Private Securities Litigation Reform Act of1995. These forward-looking statements can be identified by terminology such as“will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”“estimates,” and similar statements. The Company may also make written or oralforward-looking statements in its reports filed or furnished to the U.S.Securities and Exchange Commission, in its annual reports to shareholders, inpress releases and other written materials and in oral statements made by itsofficers, directors or employees to third parties. Statements that are nothistorical facts, including statements about the Company’s beliefs andexpectations, including its ability to obtain approvals and enjoy preferentialtreatment, are forward-looking statements. Forward-looking statements involveinherent risks and uncertainties, all of which are difficult or impossible topredict accurately and many of which are beyond the Company’s control. A numberof factors could cause actual results to differ materially from those containedin any forward-looking statement, including but not limited to the following:the demand for photovoltaic products and the development of photovoltaictechnologies; global supply and demand for polysilicon; alternativetechnologies in cell manufacturing; the Company’s ability to significantlyexpand its polysilicon production capacity and output; the reduction in orelimination of government subsidies and economic incentives for solar energyapplications; the Company’s ability to lower its production costs; changes inthe political and regulatory environment; andthe duration of COVID-19 outbreaks in China and many other countries and theimpact of the outbreaks and the quarantines and travel restrictions institutedby relevant governments on economic and market conditions, includingpotentially weaker global demand for solar PV installations that could adverselyaffect the Company’s business and financial performance. Further information regarding these and otherrisks is included in the reports or documents the Company has filed with, orfurnished to, the U.S. Securities and Exchange Commission. All informationprovided in this press release is as of the date hereof, and the Companyundertakes no duty to update such information or any forward-looking statement,except as required under applicable law.