08:14 AM EDT, 09/11/2025 (MT Newswires) -- Daqo New Energy ( DQ ) said Thursday that it has received a retrial verdict in a contract dispute between its unit, Xinjiang Daqo New Energy, and Xinjiang Xian'an New Materials and its affiliate.

The first inistance court's retrial verdict affirmed the termination of the business cooperation agreement between the parties, ordered the Daqo unit to pay 3.30 million renminbi ($463,401) in losses and attorney fees, but rejected the plaintiffs' claims for consequential damages, Daqo said.

Daqo said the impact of the litigation on its unit will be contingent upon the final verdict.

In April of last year, the plaintiffs, who had provided silicon core processing services to Xinjiang Daqo, sued for 1.96 billion renminbi in damages, which were later reduced to 742.7 million renminbi.

The first instance court terminated the agreement in July of last year and awarded a 3.16 million renminbi compensation while rejecting consequential damages, Daqo said.

The plaintiffs filed an appeal, and in March, the second instance court vacated the ruling and remanded the case for retrial, Daqo said.