Daqo New Energy Corp.’s (Daqo New Energy’s) subsidiary, Xinjiang Daqo New Energy Stock Co., Ltd., a PRC joint stock company ("Xinjiang Daqo"), formerly Xinjiang Daqo New Energy Co., Ltd., has filed an application with the National Equities Exchange and Quotations, an emerging over-the-counter market in China, or the "New Third Board.” Xinjiang Daqo operates the polysilicon production facilities of the Company 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 PRC legal requirement for listing on the New Third Board. 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.