Shares of Daqo New Energy Corp (NYSE: DQ) plunged over 5% on Tuesday, October 30th, 2024, after the polysilicon manufacturer reported dismal third-quarter results, reflecting the ongoing challenges faced by the solar industry amid weak market conditions.

In its Q3 2024 earnings release, Daqo New Energy reported a revenue decline to $198.5 million, down from $219.9 million in Q2 2024 and $484.8 million in Q3 2023. The company suffered a gross loss of $60.6 million, compared to a gross profit of $67.8 million a year earlier. The gross margin was a staggering negative 30.5%, a significant deterioration from the 14% margin recorded in Q3 2023.

The company's bottom line was equally disappointing, with a net loss of $60.7 million or $0.92 per basic ADS, compared to a loss of $6.3 million in the same period last year. Despite efforts to reduce costs, with cash costs declining to $5.34 per kilogram, Daqo New Energy still reported an operating loss of $98 million and an operating margin of negative 49%.