10:43 AM EDT, 07/17/2024 (MT Newswires) -- Daqo New Energy ( DQ ) said Wednesday a Chinese court has ordered its Xinjiang Daqo subsidiary to pay nearly 3.1 million renminbi ($420,000) for employee economic losses plus 100,000 renminbi in attorney fees to two silicon core processing companies that sued the Daqo unit in January contending the polysilicon manufacturer breached a business cooperation agreement between the firms.

The court affirmed terminating the business cooperation agreement between the plaintiffs, Xinjiang Xian'an New Materials and Xinjiang Dengbo New Energy, and Xinjiang Daqo, effective on Dec. 31, but rejected claims for compensation by the silicon core processing companies for losses due to the ending the contract, Daqo said.

Daqo has appealed the ruling and said the litigation's overall impact on Xinjiang Daqo will depend on the final verdict by the court.

Daqo shares were down more than 5% in mid-morning trading on Wednesday.

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