SCHEDULE: DAQO New Energy: Gorzynski Group Nears 10% Stake

Michael Gorzynski and affiliated entities collectively report beneficial ownership of 9.99% of DAQO New Energy Corp.'s Ordinary Shares.

Summary

• Michael Gorzynski and a group of affiliated entities (Percy Rockdale LLC, Continental General Insurance Company, Continental Insurance Group, Ltd., and Continental General Holdings LLC) collectively beneficially own 33,375,960 Ordinary Shares of DAQO New Energy Corp.
• This aggregate ownership represents approximately 9.99% of the outstanding Ordinary Shares, based on 333,759,632 Shares outstanding as of December 31, 2024.
• The ownership is primarily held through American Depositary Shares (ADSs), where each ADS represents five Ordinary Shares.
• Continental General Insurance Company (CGIC) directly owns 33,209,930 Shares (9.95%), with Continental Insurance Group, Ltd. (CIG) and Continental General Holdings LLC (CGH) deemed beneficial owners due to their sole ownership of CGIC and CIG, respectively.
• Percy Rockdale LLC directly owns 166,030 Shares (0.05%).
• Michael Gorzynski is deemed to beneficially own the combined total of 33,375,960 Shares due to his roles as Sole Manager of Percy Rockdale and Manager/Executive Chairman of CGH.
• The reporting persons certify that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 5

Explanation: This Schedule 13G filing is a factual disclosure of beneficial ownership and does not contain information that would typically influence sentiment positively or negatively regarding the company's operational or financial performance.

Positives

• NA

Negatives

• NA

Risks

• NA

Industry Context

This filing is a standard beneficial ownership disclosure and does not provide specific insights into broader industry trends for DAQO New Energy Corp. or its competitors. It primarily reflects an investor group's stake in the company.

Related Party Transactions

• The filing details the beneficial ownership structure among a group of related entities: Continental General Holdings LLC (CGH) is the sole owner of Continental Insurance Group, Ltd. (CIG), which in turn is the sole owner of Continental General Insurance Company (CGIC). Michael Gorzynski is the Sole Manager of Percy Rockdale LLC and a Manager and Executive Chairman of CGH, leading to his deemed beneficial ownership of the aggregate shares held by Percy Rockdale and CGIC.

Stakeholder Impact

• Shareholders: The disclosure of a significant, nearly 10% ownership stake by a coordinated group of entities and an individual could be of interest to other shareholders, indicating a concentrated ownership block. While the filing certifies no intent to influence control, such a large stake can still be a factor in corporate governance discussions.

Key Dates

Keywords

DAQO New Energy, DQ, Beneficial Ownership, Schedule 13G, Michael Gorzynski, Institutional Ownership, Ordinary Shares, ADS, Equity Stake