Stock code: 688303 Stock abbreviation: Daqo Energy Announcement No.: 2025-002

Xinjiang Daqo New Energy Co., Ltd

Regarding the completion of fund-raising projects and the surplus raised funds to permanently replenish liquidity

and the announcement of the cancellation of the special account for raising funds

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of the announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

Xinjiang Daqo New Energy Co., Ltd. (hereinafter referred to as the "Company") was convened on December 30, 2024

The fifteenth meeting of the third board of directors and the fourteenth meeting of the third board of supervisors were held, and the "Proposal on the Completion of Fund-raising Projects and Permanent Replenishment of Liquidity with Surplus Raised Funds" was deliberated and approved, and it was agreed that the company would raise funds to invest in projects (hereinafter referred to as "fund-raising projects") "polysilicon project with an annual output of 35,000 tons", "high-purity semiconductor materials with an annual output of 1,000 tons" and "high-purity silicon-based materials project with an annual output of 100,000 tons". And the surplus raised funds (the actual amount is subject to the surplus amount of the project funds calculated on the day of fund transfer) will permanently replenish the working capital and cancel the special account for raising funds. The Board of Supervisors of the Company expressed its unequivocal agreement on the proposal, and the sponsor of the Company, China International Capital Corporation Limited (hereinafter referred to as the "Sponsor"), issued a verification opinion on this matter. This matter does not need to be submitted to the general meeting of shareholders of the company for deliberation. The specific announcement is as follows:

First, the basic situation of the funds raised

1. The actual funds raised by the initial public offering of shares

According to the China Securities Regulatory Commission's "Reply on Agreeing to the Registration of the Initial Public Offering of Shares of Xinjiang Daqo New Energy Co., Ltd." (Zheng Jian Xu Xu [2021] No. 2110), the company's application for registration of the initial public offering of shares was approved. With the approval of the Shanghai Stock Exchange, the company issued RMB to the public for the first time

30,000,000 A shares at an issue price of RMB21.49 per share, raising a total amount of funds

It was RMB6,447,000,000.00, and after deducting the issuance expenses of RMB379,808,207.55, the actual net proceeds were RMB6,067,191,792.45. All proceeds from the IPO have been received

and was verified by Deloitte Touche Tohmatsu Certified Public Accountants (Special General Partnership) on July 19, 2021

With the "Capital Verification Report" (Deshi Bao (Verification) Zi (21) No. 00348). See 20217 for details

Announcement of the listing of the stock science and technology innovation board.

2. The actual funds raised from the issuance of A-shares to specific targets in 2022

According to the China Securities Regulatory Commission's Reply on Agreeing to the Registration of Xinjiang Daqo New Energy Co., Ltd. to Issue Shares to Specific Targets (Zheng Jian Xu Xu [2022] No. 1119), it is agreed that the Company will issue A shares to specific targets (hereinafter referred to as "private placement"). The number of shares issued by the company was 212,396,215 shares, the issue price was 51.79 yuan per share, and the total amount of funds raised was RMB 10,999,999,974.85, deducting the issuance expenses excluding tax of 63,227,799.87 yuan, and the actual net amount of funds raised was RMB 10,936,772,174.98. All the above-mentioned raised funds have been received in the account, and have been verified by Deloitte Touche Tohmatsu Certified Public Accountants (Special General Partnership) and issued the "Capital Verification Report" of "Deshi Bao (Verification) Zi (22) No. 00299". tool

For details, please refer to the Company's disclosure on the website of the Shanghai Stock Exchange on July 7, 2022 (www.sse.com.cn)

Announcement of Xinjiang Daqo New Energy Co., Ltd. on Signing a Tripartite Supervision Agreement on the Storage of Raised Funds in a Special Account (Announcement No.: 2022-051).

2. Fundraising and investment projects

1. The actual use of funds raised in the initial public offering of shares

According to the company's "Prospectus" and "Announcement on the Use of Part of the Over-raised Funds to Increase the Investment Amount of the Raised Projects" (Announcement No.: 2021-009) disclosed in the investment projects of the raised funds and the use plan of the raised funds, the use plan of the raised funds is as follows:

Unit: 10,000 yuan

Serial No. Project Name Originally planned to be invested in fund-raising Funds to be used after adjustment

Gold Amount The amount of gold invested

1 annual output of 1,000 tons of high-purity semiconductor materials project 42,105.00 42,105.00

2 Polysilicon projects with an annual output of 35,000 tons 351,188.84 408,762.63

3 Replenishment of liquidity 106,706.16 106,706.16

Total 500,000.00 557,573.79

2. The actual use of funds raised from the issuance of A-shares to specific targets in 2022

In accordance with the company's "prospectus" disclosed in the raised funds investment projects and raised funds use plan, raising

The plan for the use of the raised funds is as follows:

Unit: 10,000 yuan

Serial No. Project Name Total Investment of the Project The amount of funds to be raised

1. Annual output of 100,000 tons of high-purity silicon-based materials project 800,334.86 800,334.86

2 Replenishment of liquidity 299,665.14 299,665.14

Total 1,100,000.00 1,100,000.00

Note: As of June 30, 2024, please refer to the Company for details on the deposit and actual use of the funds raised from the Company's initial public offering

Xinjiang Daqo New Energy, disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn) on August 27, 2024

Special Report on the Deposit and Actual Use of Raised Funds in the Half Year of 2024 (Announcement No.: 2024-

040), the deposit and actual use of the funds raised from the public issuance of shares to specific targets are detailed in the company's announcement on March 30, 2024

The "Special Report of Xinjiang Daqo New Energy Co., Ltd. on the Deposit and Actual Use of Raised Funds in 2023" (Announcement No.: 2024-014) disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn).

3. The use of funds and savings of the fund-raising and investment projects completed this time

(1) The specific use and savings of the funds raised by the project

The company's fundraising projects are "polysilicon project with an annual output of 35,000 tons" and "high silicon with an annual output of 1,000 tons

Pure Semiconductor Materials Project" and "Annual Output of 100,000 Tons of High-Purity Silicon-based Materials Project". As of the date of this announcement, the above-mentioned fundraising projects have been implemented in accordance with the plan, and have reached the predetermined usable state, meeting the conditions for completion. The specific use of funds and savings of the fundraising and investment projects completed this time are as follows:

Unit: 10,000 yuan

It is planned to invest in raising funds Cumulative investment in raising interest and financial management income Estimated savings raised

Project Name Amount of Funds (A) Amount of Funds (B) Amount of Funds (Deduction Procedures Amount of Funds.)

fee) (C) (D=A-B+C)

Annual output of 1000 tons of high purity 42,105.00 42,875.33 770.33 -

Semiconductor Materials Project

Annual output of 35,000 tons of polycrystalline 408,762.63 399,143.70 1,554.39 11,173.32

Silicon project

Annual output of 100,000 tons of high-purity silicon 800,334.86 801,864.78 1,529.92 -

Base material project

Note 1: "Cumulative amount of funds invested" includes the interest and wealth management income of part of the funds raised by the project;

Note 2: "Interest and wealth management income" does not include bank interest income that has not yet been received, and the actual amount is subject to the balance of the special account on the day when the funds are transferred out;

Note 3: "Estimated Surplus Raised Funds" includes the outstanding balance of the project, equipment and contract warranty of the fund-raising project, and the surplus funds to be paid by the fund-raising project will be paid with its own funds after all the surplus funds are transferred out.

Note 4: Any penny difference in the above table data is due to rounding.

(2) The main reason for the surplus of funds raised by the project

In the construction process of the fund-raising project, the company proceeds from the actual situation of the project, adheres to the principles of reasonableness, effectiveness, prudence and economy on the premise of ensuring the quality of the project, strengthens the control, supervision and management of the cost of all aspects of the project construction, and reasonably reduces the total expenditure of the project.

In addition, in order to improve the efficiency and income of the raised funds, and make reasonable use of idle raised funds, the company has obtained certain cash management income by using part of the temporarily idle raised funds for cash management without affecting the normal implementation of the raised funds investment projects, not affecting the normal production and operation of the company, and ensuring the safety of the raised funds.

To sum up, the company has strengthened the control, supervision and management of the costs of all aspects of project construction, as well as the cash management of idle raised funds, which has promoted the formation of capital savings in the fund-raising projects.

Fourth, the use of surplus funds and the cancellation of the special account for raising funds

The company intends to permanently supplement the company's working capital with the surplus funds after the completion of the project (the actual amount is subject to the surplus amount of the project funds calculated on the day of fund transfer), which is conducive to meeting the company's daily operation demand for working capital, improving the efficiency of the use of raised funds, reducing the company's financial costs, and improving the company's profitability, which is in line with the interests of the company and all shareholders. The company uses the surplus raised funds to permanently replenish the working capital, and there is no disguised change in the investment direction of the raised funds, which is in line with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the use of raised funds by listed companies. After the transfer of the above-mentioned surplus raised funds is completed, the company will go through the cancellation procedures of the above-mentioned special account for raised funds, and the supervision agreement on the special account for raised funds signed by the company with the sponsor institution and the opening bank will be terminated.

The project has yet to pay the final payment of the project, the balance of the equipment and the contract warranty, which is the acceptance of the final payment or the warranty according to the contract that has not yet met the payment conditions, the company takes into account the long payment cycle, and the fund-raising projects have been implemented in accordance with the plan, and have reached the predetermined usable state, meet the conditions for the completion of the project, in order to improve the efficiency of the use of funds

rate, to avoid long-term idle funds, it is proposed to include the aforementioned unpaid amount to permanently replenish liquidity. When the payment terms are met, the company will make the payment from its own funds. If the actual outstanding amount exceeds the current expected outstanding amount, the company will make up the amount with its own funds.

5. The impact of the completion of the fund-raising project and the surplus raised funds to permanently supplement the working capital of the company

The completion of part of the company's fund-raising projects and the permanent replenishment of working capital with the surplus raised funds is a reasonable adjustment made by the company according to the development strategy and the actual situation of the project, which is conducive to the company's optimization of the allocation of raised funds, improving the efficiency of the use of the company's raised funds, reducing the company's financial costs, and promoting the company's long-term development, which will not have a significant adverse impact on the company's normal production and operation, and is in line with the interests of the company and shareholders. There is no violation of the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the use of funds raised by listed companies.

6. Explanation of the review procedures and special opinions for the performance

On December 30, 2024, the company held the fifteenth meeting of the third board of directors and the third board of supervisors

At the 14th meeting, the "Proposal on the Completion of Fund-raising Projects and Permanently Replenishing Liquidity with Surplus Raised Funds" was deliberated and approved, and it was agreed that the company would complete the fund-raising projects "35,000 tons of polysilicon project with an annual output", "1,000 tons of high-purity semiconductor materials project with an annual output of 1,000 tons" and "100,000 tons of high-purity silicon-based materials project with an annual output of 100,000 tons", and permanently replenish the working capital with the surplus raised funds and cancel the special account for raising funds. This matter does not need to be submitted to the general meeting of shareholders of the company for deliberation.

(1) Opinions of the Board of Supervisors

After review, the board of supervisors believes that the company's fundraising and investment projects have been implemented in accordance with the plan and have reached the intended usable state, and can be closed. After the completion of the project, the surplus raised funds will be permanently replenished with working capital, which is conducive to improving the efficiency of the use of raised funds and promoting the development of the company, which is in line with the interests of the company and all shareholders, and there is no disguised change in the investment direction of the raised funds and damage to the interests of shareholders, especially small and medium-sized shareholders. The content and decision-making procedures of this matter comply with relevant laws and regulations, such as the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies (Revised in 2022), the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange (Revised in April 2024), and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation (Revised in December 2023), as well as the Articles of Association and the Company's Management System for Raised Funds.

In summary, the Board of Supervisors agreed that the company will close the fund-raising project and permanently supplement the liquidity with the surplus raised funds.

(2) The verification opinions of the sponsor institution

After verification, the sponsor China International Capital Corporation Limited believes that the completion of part of the company's fund-raising projects and the permanent replenishment of liquidity with the surplus raised funds have been deliberated and approved by the board of directors and the board of supervisors of the company, and the necessary internal approval procedures have been fulfilled. This matter is in line with the relevant laws and regulations such as the Rules for the Listing of Stocks on the Science and Technology Board of the Shanghai Stock Exchange, the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 11 - Continuous Supervision, and the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies, as well as the relevant provisions of the Company's Measures for the Management of Raised Funds.

In summary, the sponsor has no objection to the company's completion of the fund-raising project and the permanent replenishment of liquidity with the surplus raised funds.

The announcement is hereby made.

Board of Directors of Xinjiang Daqo New Energy Co., Ltd

January 1, 2025