Stock code: 688303 Stock abbreviation: Daquan Energy Bulletin No.: 2022-003

Xinjiang Daqo New Energy Co., Ltd.

Announcement on capital increase of wholly-owned subsidiary

the company's board of directors and all directors to ensure that the contents of this announcement does not exist any false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the contents of the legal responsibility.

Important Content Tips:

Name of Capital Increase Target: Inner Mongolia Daquan New Energy Co., Ltd. (hereinafter referred to as "Inner Mongolia Daquan")

Capital increase amount: 9.999 billion yuan RMB

This capital increase has been the 19th meeting of the second board of directors and the 10th meeting of the second board of supervisors of the company.

The second meeting was reviewed and approved, and it still needs to be submitted to the company's first extraordinary general meeting of shareholders in 2022 for deliberation.

This capital increase does not constitute the "Shanghai Stock Exchange Science and Technology Board Stock Listing Rules" and "Xinjiang Daquan".

The related transactions stipulated in the Articles of Association of New Energy Co., Ltd. also do not constitute "significant" of listed companies.

Major asset restructuring as stipulated in the Measures for the Administration of Asset Restructuring.

Overview of 1. Capital Increase

Basic information (I) this capital increase

Xinjiang Daqo New Energy Co., Ltd. (hereinafter referred to as the "Company") was called on December 31, 2021.

The 19th meeting of the second board of directors and the 12th meeting of the second board of supervisors were held. The proposal on capital increase of wholly-owned subsidiaries was deliberated and passed. It was agreed to increase capital to Inner Mongolia Daquan, a wholly-owned subsidiary company, with its own or self-raised funds of 9.999 billion yuan, for the investment, construction and operation of Inner Mongolia Daquan's phase I project "100000 tons/year high purity polysilicon +1,000 tons/year semiconductor polysilicon" in Baoton Baoton the first day, and according to the follow-up progress of the project to complete the funding. This capital increase to Inner Mongolia Daquan will increase its registered capital. After the completion of this capital increase, the registered capital of Inner Mongolia Daquan will increase from 1 million yuan to 10 billion yuan.

(II) the decision-making and approval procedures for this capital increase

On December 31, 2021, the company held the 19th meeting of the second board of directors and the second supervisor.

At the 12th meeting of the meeting, the "Proposal on Capital Increase of Wholly Owned Subsidiaries" was reviewed and approved, which still needs to be submitted to the company's first extraordinary general meeting of shareholders in 2022 for deliberation.

This capital increase does not constitute a connected transaction as stipulated in the "Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules" and the "Articles of Association of Xinjiang Daquan New Energy Co., Ltd.", nor does it constitute a major asset reorganization as stipulated in the "Administrative Measures for the Major Asset Reorganization of Listed Companies.

Basic information on the subject of 2. capital increase

Company Name: Inner Mongolia Daquan New Energy Co., Ltd

Unified Social Credit Code: 91150207MA0RT2RN5X

Legal Representative: Xu Guangfu

Registered capital: 1 million yuan

Date of Establishment: October 25, 2021

Domicile: Jiuyuan Industrial Park, Jiuyuan District, Baotou City, Inner Mongolia Autonomous Region, Inner Mongolia Guangwei Carbon Fiber Co., Ltd. Wan

Tons of carbon fiber industrialization project to the east, south of Weisi Road

Business scope: sales of photovoltaic equipment and components; manufacturing of special equipment for semiconductor devices; special materials for electronics.

manufacturing of materials; sales of special equipment for semiconductor devices; manufacturing of non-metallic mineral products; electronics

Sales of special materials; manufacturing of photovoltaic equipment and components; technical services, technology development, and,

Technical consultation, technical exchange, technology transfer, technology promotion; research and development of electronic special materials;

Solar power technology services; synthetic materials manufacturing (excluding hazardous chemicals); synthetic materials

Sales of materials; smelting of commonly used non-ferrous metals; smelting of ferroalloys; research and development of new materials and technologies; gold

Research and development of products; manufacturing of power electronic components; sales of non-ferrous alloys.

Equity structure: Before and after this capital increase, the company holds 100 percent of the shares of Inner Mongolia.

The latest issue of key financial data: Inner Mongolia Daquan was established on October 25, 2021, as of this public.

As of the date of the report, Inner Mongolia Daquan has not yet been in actual operation and no financial data is available.

Capital increase mode: self-owned or self-financing

3. the impact on the Company after this capital increase

After this capital increase, the registered capital of Inner Mongolia Daquan increased from 1 million yuan to 10 billion yuan.

currency, which remains a wholly owned subsidiary of the Company. This capital increase will help the company to promote the investment and construction of the first phase of the Baotou project "100000 tons/year high purity polysilicon +1,000 tons/year semiconductor polysilicon" as soon as possible. On the one hand, it will expand the production capacity of high purity polysilicon, further consolidate and expand the market share of the company's high purity polysilicon business, and further optimize the company's main business structure, Realize the diversification of the company's product structure, and enhance the company's comprehensive competitive advantage and profitability.

4. the purpose of this capital increase

Accelerate the company's investment and construction in the first phase of the Baotou project "100000 tons/year high-purity polysilicon +1,000 tons/year semiconductor polysilicon" to enhance the company's comprehensive competitive advantage.

It is hereby announced.

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

January 4, 2022