On the evening of December 20, 2021, Xinjiang Daqin Energy Co., Ltd. issued an announcement stating that it signed the "Strategic Cooperation Framework Agreement between Baotou City People's Government and Xinjiang Daqin Energy Co., Ltd." with the Baotou Municipal People's Government, and agreed to invest 33.25 billion yuan. Yuan invested in the construction of 300,000 tons/year high-purity industrial silicon project + 200,000 tons/year organic silicon project + 200,000 tons/year high-purity polysilicon project + 21,000 tons/year semiconductor polysilicon project.

According to the announcement, on the basis of the "Strategic Cooperation Framework Agreement", Daquan Energy signed the "Project Investment Agreement" with the People's Government of Jiuyuan District, Baotou City, stipulating the above-mentioned 200,000 tons/year high-purity polysilicon project and 21,000 tons/year The semiconductor polysilicon project is invested and constructed in Jiuyuan Industrial Park, Baotou City, Inner Mongolia. The total investment is estimated to be 24.25 billion yuan and will be completed in two phases. Among them, the first phase of the project will build 100,000 tons/year of high-purity polysilicon + 1,000 tons/year of semiconductor polysilicon, with an estimated investment of about 8.55 billion yuan. Construction will start in the first quarter of 2022 and will be completed and put into production in the second quarter of 2023; The project will be advanced according to the market demand situation.

At the same time, on the basis of the "Strategic Cooperation Framework Agreement", Daquan Energy signed the "Letter of Intent for Investment" with the People's Government of Guyang County, Baotou City, agreeing on the aforementioned 300,000 tons/year high-purity industrial silicon project and 200,000 tons/year organic silicon project It is invested and constructed in Baotou Jinshan Industrial Park within the jurisdiction of Guyang County, Baotou City. The total investment of the project is estimated to be 9 billion yuan.

Since 2021, benefiting from the increase in downstream demand for silicon wafers in the photovoltaic industry, the supply of silicon materials is in short supply, and Daquan Energy's production and sales are booming. In the first three quarters, the company achieved a total operating income of 8.305 billion yuan, an increase of 177.16% over the same period last year; net profit attributable to the parent was 4.473 billion yuan, an increase of 799.73% over the same period last year. The production of polysilicon was 63,000 tons and the sales volume was 63,700 tons. The company's 35,000-ton polysilicon project was put into operation on December 6, and will reach production before the end of the first quarter of 2022, and will maintain its leading position in the industry.

It is understood that Daquan Energy’s investment and construction project in Baotou City makes full use of Baotou’s comprehensive advantages in industrial base talents and resources, business environment, and industrial policy support. The project mainly involves high-purity industrial silicon, organic silicon, and high-purity industrial silicon. R&D and production of polysilicon and semiconductor polysilicon products. The governments of Baotou City, Jiuyuan District, and Guyang County also agreed to implement preferential policies on electricity, finance, and taxation for Daquan Energy on the basis of meeting conditions, and assist the company in actively seeking support and encouragement policies from the state and autonomous regions.

Daquan Energy stated that the cooperation with Baotou City will expand the production capacity of high-purity polysilicon on the one hand, drive the increase in product output, further consolidate and expand the company’s market share of the company’s high-purity polysilicon business, and on the other hand, it will further optimize the company’s main business. Business structure, realize the diversification of the company's product structure, and enhance the company's comprehensive competitive advantage and profitability. Editor/He Yuting