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Daqo New Energy’s Subsidiary Faces Ongoing Litigation Challenges

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Protect Your Portfolio Against Market Uncertainty

Daqo New Energy ( (DQ) ) has issued an announcement.

In April 2024, Daqo New Energy’s subsidiary, Xinjiang Daqo, was involved in a contract dispute lawsuit with Xinjiang Xian’an New Materials and its affiliate. The plaintiffs initially sought compensation for economic losses but later reduced their claim. The first court ruling favored the plaintiffs with a minor compensation, but the decision was vacated by a second instance court in March 2025, leading to a new trial. Recently, the plaintiffs further reduced their compensation demand, and the final impact on Xinjiang Daqo will depend on the outcome of the new trial.

Spark’s Take on DQ Stock

According to Spark, TipRanks’ AI Analyst, DQ is a Neutral.

Daqo New Energy is currently navigating a tough financial period, characterized by declining revenues and profitability. The company’s strong balance sheet is a positive, but the negative cash flow and valuation metrics are concerning. Technical analysis indicates a bearish trend, further compounded by negative sentiment from the recent earnings call. While the company is making efforts to optimize costs, the significant industry challenges and financial losses weigh heavily on the overall score.

To see Spark’s full report on DQ stock, click here.

More about Daqo New Energy

Daqo New Energy is a company operating in the renewable energy sector, primarily focusing on the production and supply of polysilicon, a key material used in solar power generation. The company is based in Shanghai, China, and has a significant presence in the solar energy market.

YTD Price Performance: -35.13%

Average Trading Volume: 926,128

Technical Sentiment Signal: Buy

Current Market Cap: $862.7M

Find detailed analytics on DQ stock on TipRanks’ Stock Analysis page.

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