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Benzinga
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Daqo Banks On Beijing's New Campaign For Solar Sector Recovery

1. Daqo's revenue dropped 66%, showing high losses amid price declines. 2. Polysilicon prices fell below production costs, negatively impacting margins. 3. A government campaign aims to reduce competition in China's solar sector. 4. Daqo produced at only 34% capacity, reflecting industry-wide overproduction. 5. Despite challenges, Daqo's cash resources may help manage ongoing losses.

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FAQ

Why Bearish?

Daqo's significant revenue drop and production issues indicate weak fundamentals, similar to 2022's downtrend.

How important is it?

The article directly addresses Daqo's financial health and industry challenges critical to its stock performance.

Why Short Term?

Immediate price pressure due to declining revenues and low capacity utilization; potential recovery from government initiatives could unfold over time.

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