It was a bad day for the Chinese stock market but that didn’t stop Daqo New Energy Corp. , a manufacturer of high-purity polysilicon for the solar PV industry, from announcing that its subsidiary, Xinjiang Daqo New Energy Stock Co., Ltd., has filed an application with the National Equities Exchange and Quotations, an emerging over-the-counter market in China. Xinjiang Daqo operates polysilicon production facilities located in Shihezi, Xinjiang Uyghur Autonomous Region.
Daqo New Energy currently owns 99% of the equity interest of Xinjiang Daqo following a corporate restructuring completed in December 2015 to enable Xinjiang Daqo to meet certain China’s legal requirement for listing on the “New Third Board” over the counter market. Prior to the restructuring, Xinjiang Daqo was a wholly owned subsidiary of Daqo New Energy.
In the event that Xinjiang Daqo successfully lists on the New Third Board, the current intent of the Company is that, immediately following the listing, Daqo New Energy will own a substantial majority of the outstanding equity interest of Xinjiang Daqo and continue to consolidate its financial results.
There is no assurance that Xinjiang Daqo will successfully list on the New Third Board. Xinjiang Daqo’s listing is subject to, among other things, market and business conditions and Xinjiang Daqo satisfying relevant rules of the China Securities Regulatory Commission and the applicable securities exchange and other applicable registration, listing and offering requirements and obtaining requisite regulatory approvals of its listing application.
This post was prepared by Solar Thermal Magazine staff.