Xinjiang Daquan New Energy Co., Ltd. (Dquan Energy) recently announced that its Artificial Intelligence Data Center (AIDC) project is still in the early stages, while the company’s silicon material main business has incurred losses exceeding 5 billion yuan over the past two years.
In the “Investor Relations Activity Record of Xinjiang Daquan New Energy Co., Ltd.” released by Dquan Energy, the company stated to investors: “The current photovoltaic industry is in a downward cycle of weak market demand and bottoming product prices, with the industry operating environment under overall pressure, and the company’s performance is subject to temporary impacts.”
The “2026 Interim Report” of Dquan Energy shows: “In the first half of 2026, the company achieved operating income of 622.8227 million yuan, a decrease of 57.63% compared to the same period last year, with total profit, net profit attributable to shareholders of the listed company, net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses, basic earnings per share, diluted earnings per share, and basic earnings per share after deducting non-recurring gains and losses all significantly decreased compared to the same period last year.”
According to a report by “The Paper” on October 9, the performance in the first half of 2026 represents the worst mid-term performance of Dquan Energy in over a decade, with a net profit attributable to owners of the parent company of a loss of 1.595 billion yuan during the reporting period, an increase in losses of 40.29% year-on-year, the largest increase in losses among the “Four Kings of Silicon Materials”. Since the second quarter of 2024, Dquan Energy has incurred losses of over 5 billion yuan in just two years.
In the “Investor Relations Activity Record of Xinjiang Daquan New Energy Co., Ltd.”, Dquan Energy stated: “The company’s AIDC project is currently in the preliminary procedural processing stage”, further adding, “Should there be significant changes or phased progress in the future, the company will fulfill its disclosure obligations in accordance with laws and regulations.”
Dquan Energy did not directly address investors’ inquiries about when the turning point of industry clearance and price recovery will occur, only stating: “When capacity and inventory digestion enter a substantial stage, industry chain products are priced reasonably, and industry enterprises achieve a certain degree of profit recovery, the supply-demand pattern shifts from imbalance to balance, which can be considered as the turning point of the industry’s arrival.”
“The Paper” noted that Dquan Energy’s avoidance of the issue to some extent indicates that even industry leaders lack a clear timetable for the turning point of silicon material prices. Looking at the latest project progress disclosed by Dquan Energy, while the main business continues to bleed, the new business is unable to contribute to profits in the short term. Moreover, in the long term, Dquan Energy’s entry into the fiercely competitive AIDC power distribution arena will compress profit margins due to price competition.
Public data shows that Xinjiang Daquan New Energy Co., Ltd. was established in February 2011, headquartered in Shihezi City, Xinjiang, and primarily engaged in the research, production, and sales of high-purity polycrystalline silicon. It went public on the Shanghai Stock Exchange’s Sci-Tech Innovation Board in July 2021.