Daqo NewEnergy Begins Pilot Production at New Phase 4B Polysilicon ProductionFacility

Dec 06, 2021

Shanghai, China—December 6, 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 it had completedthe construction ahead of schedule and begun pilot production at its new 35,000MT Phase 4B polysiliconproduction facility. The Company expects its Phase 4B polysiliconproduction facility to gradually ramp up to full production capacity andto increase its total annual production capacity to 105,000 MT by the end of the first quarter of 2022.

Mr. LonggenZhang, CEO of Daqo New Energy, commented, “We are very excited to have completedthe constructionin our new Phase 4B polysilicon production facility. We have already successfully harvested the first batch ofpolysilicon produced in the new facility. It is a great achievement for us tocomplete the project ahead of schedule given the significantdifficultiesand challenges resultingfrom the resurgence of COVID-19.This would not have been possible without thededication and expertise of our outstanding team and varioussuppliers who haveset up a new benchmark of excellence forthe Company and the industry. We expect to ramp up thenew Phase 4B facility to full capacityby the end of March 2022.”

“2021 is amilestone in the solar PV history when grid parity has been broadly achieved.The urgency to tackle climate change has led to broad policy support from majoreconomies globally. With the risingprices of fossil fuels, solar PV is becoming more competitive and its economic valueis being increasingly recognized by the market, as reflected by the increasedprices of solar products this year, a rare occurrence in thesolar PV history. We believe we are just at thebeginning of a new era in which solar PV will play an increasingly criticalrole as one of the cleanest, most sustainable, and most cost-effective sourcesof energy. We expect to see accelerating growth in solar demand in the foreseeablefuture.”

“As one of thefirst-tier high-quality polysilicon providers, we will continue toexecute our three-year plan to expand our production capacity to270,000 MT by the end of 2024,to meet the world’s urgent need for cost-effective and clean non-carbon energygeneration. At the sametime, we will continue to improve our productquality to be market-ready for the next generation N-typetechnology. With theproceeds from the successful IPO of our subsidiary, Xinjiang Daqo, on China’s A-sharemarket, our provenstrong execution capabilities,deep understanding of our customers’ needs, and our advantagesin cost structure and product quality, we have a strong foundation to continue toserve the fast-growing solar PV market and create value for our shareholders.”

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. ReneVanguestaine

Phone: +86 178 1749 0483

rvanguestaine@christensenir.com

In the U.S.
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com

Safe Harbor Statement

Thisannouncement contains forward-looking statements. These statements are madeunder the “safe harbor” provisions of the U.S. Private Securities LitigationReform Act of 1995. These forward-looking statements can be identified byterminology such as “will,” “expects,” “anticipates,” “future,” “intends,”“plans,” “believes,” “estimates,” and similar statements. The Company may alsomake written or oral forward-looking statements in its reports filed orfurnished to the U.S. Securities and Exchange Commission, in its annual reportsto shareholders, in press releases and other written materials and in oralstatements made by its officers, directors or employees to third parties.Statements that are not historical facts, including statements about theCompany’s beliefs and expectations, are forward-looking statements.Forward-looking statements involve inherent risks and uncertainties, all ofwhich are difficult or impossible to predict accurately and many of which arebeyond the Company’s control. A number of factors could cause actual resultsto differ materially from those contained in any forward-looking statement,including but not limited to the following: the demand for photovoltaicproducts and the development of photovoltaic technologies; global supply anddemand for polysilicon; alternative technologies in cell manufacturing; theCompany’s ability to significantly expand its polysilicon production capacityand output; the reduction in or elimination of government subsidies andeconomic incentives for solar energy applications; the Company’s ability tolower its production costs; changes in the political and regulatoryenvironment; and the duration of COVID-19outbreaks in China and many other countries and the impact of the outbreaks andthe quarantines and travel restrictions instituted by relevant governments oneconomic and market conditions, including potentially weaker global demand forsolar PV installations that could adversely affect the Company’s business andfinancial performance.Further information regarding these and other risks is included in the reportsor documents the Company has filed with, or furnished to, the U.S. Securitiesand Exchange Commission. All information provided in this press release is asof the date hereof, and the Company undertakes no duty to update such informationor any forward-looking statement, except as required under applicable law.