Q4 2019 Earnings Call
Once you get that he's confidence is scheduled to begin shortly please go to keep standby interpretation.
[music].
Gentlemen, thanks, we've tended bite and welcome to meet Insulates fourth quarter and full year 2019 things got there's call. My name is <unk> I will be up later today at this time.
That's a little.
Later, we'll conduct a question answer session I duty lighter. This conference is being recorded for replay purposes.
Like you tend to follow but the job managing director of Investor makers Escondida saw there is scope.
Thank you Rodney and welcome everyone to Canadian Solars fourth quarter, and full year 2019 earnings conference call.
Joining us today are dr. shrunk Jeeze, chairman and Chief Executive Officer.
Yes.
Acting Chief Executive Officer, and Dr., where are you from Trump.
Chief Financial Officer.
On this call.
The brief update.
Followed by yet will review, our recent progress and outlook.
Well you Fund will then review our financial results before we open the call for your question.
If it would be good.
May I remind listeners that management's prepared remarks today as well as their answers to your question will contain forward looking statements, which are subject to risks and uncertainties.
Therefore, the company claims the protection of the Safe Harbor for forward looking statements that is contained in the private Securities Litigation Reform Act 1995.
Actual results may differ from management's current expectations.
Any projections.
I mean, its future performance.
We present management estimates.
Today Canadian solar assumes no obligation to update is projected future unless otherwise required by applicable law.
A more detailed discussion.
The risks and uncertainties can be found in the company's annual reports and fine.
Yep.
Filed with the Securities and Exchange Commission.
Management's prepared remarks will be presented within the corn Betsy see Reg G.
Regarding <unk> generally accepted accounting principles or got.
Some financial information presenting during the call will be provided them, both GAAP and non-GAAP basis.
This closing certain non-GAAP information management intends to provide investors with additional information to allow further analysis.
Company's performance and the underlying trends.
Management uses non-GAAP measures to better assess operating performance and to stop disrupt operational goals non-GAAP information should not be viewed by investors.
<unk> Jude would be the prepared in accordance to gap.
This time I would like to turn the call over because they've been sold as chairman and CEO Dr. Sharon Shih Sean. Please go ahead.
Thank you and welcome everyone goes all nine people with a strong year I saw revenue on a whopping oh exceeded expectation.
Yeah, well go through all phases of yesterday deal, but all the more details.
In the current and data that macro situation.
With that I could share with you bundle I do that perspective.
First of all.
Being working hard to assure that held at assays to take a bargain Paul Yes. This is all top priority.
We're also taking hold and that's that's where I'm not sure that support our customers and partners in the current market environment.
Phil funding for the market for rebel.
Today.
Hi, there one of the most environmental and economic where they are trusculpt fourth it well and Andrew.
Away from continues to drive or they're just compared to seven years.
That's a call sometimes the performance of storage Im sure there was pretty cool.
I believe they sedan market share in a global I know your generation mix will accelerate.
Yes, that's true the market water.
Global Carbonization.
Oh intensified curry, Jim even greater I'd be bad.
I think I just had a whole lot though.
The cooling Shaw, resulting from an oral by the coupon kono virus or likely interrupted because I didn't decide fiction, yes, no trillium bye.
Canadian Solar has a proven track record of nine he is an has established strong foundations.
Joel Oh size share out that demand goals.
Well do a globally diversified flexible capacity the structural strong customer relationships and bank facility Oh, there's ceilidh isn't as model that adopt to change supermarket.
[noise] Hillary today, but also putting in place risk controls to preserve cash and navigate the market volatility.
We believe it without the robot fairly conservative nature of our long term Scottish allow the company emerge stronger on the call. It appeared on sort of it.
With that I'd like to topline for good yes. Please go ahead.
Thank you Sean.
Let me start some key messages.
First.
Cheap strong results for the fourth quarter and full year 2019.
Remedies profitability meaningfully above our expectations.
Second we continue to grow and money finds our operations total assets and pipeline.
We currently have 880 megawatts founder accretion.
512 megawatts under construction 3.7, gigawatts in backlog than 11.7, Gigawatts and pipeline.
We are expanding our presence in regions such as E.
While solidifying our leadership position in North America, Latin America, and Asia Pacific.
Third.
We are evaluating the energy business model and expanding previously successful strategies.
For example.
Ladies donating front structure funky in Japan.
We choose sponsored by the company, what's the successful we capturing additional data I retaining partial ownership in selective projects, we do about.
[noise] this strategy will increase the predictability and stability off our revenue speeds to power cells.
On NIM, an asset management services.
Ports.
Perhaps set up a global team with a focus on system integration than any just storage, which will help to do the new technology didn't need help the company and lead the next we've all seen this industry.
It is a natural next step the next step as we have the advantage off for a strong and Brian Lara pipeline and the tight control over our distribution channels.
And finally, I'd like to Echo John's comments.
We had a little box start to the year.
But have started to see more not if not if you can impact from the Cobi 90.
Q1 was somewhat affected by the capacity loss in China, and now there's greater uncertainty over demand in Q2 in Q3.
However, the recovery is bound to calm.
So we have kept a fairly wide range.
For the 2000 punt the guidance.
10 dynamic, it's a new challenge over.
Over the past years that we learned many licensing navigating volatile markets.
Now let me go through this quarter's results.
On the any type of society.
We closed various projects cells.
While we continue to originate.
You bet it and.
No its new projects.
In Japan, we closed the project South of 10 megawatts in Q4, 2019, and 56 megawatts in Q1 2020.
Aside it.
We also achieved commercial operation on one project.
And starting construction off another two projects continue to do.
Our leadership position.
It's a lot from region, we sold a 49% interest no 370 megawatts portfolio a project in Mexico that are currently under development to South Korea's largest electric utility capital.
And our leading from manager Sprott Korea.
We viewed from the success of our first transaction with capital in 2018, when we sold them over to 230 megawatts of projects in California.
Additionally, we're growing in the commercial and industrial space.
Wanting more P.P. AIDS with large corporate peak of speakers.
For example, you must treat yeah, we announced a p., we Muslim for electricity to be supply from our 146 megawatts.
Made us sort of solar plant Wiley, Mexico, we find a 15 year P.P.A. <unk> lead the packaging actually.
To do the 103 megawatt solar pump.
Not to capture more off the social value chain, we are increasingly pending partial ownership of solar project access to reduce lumpiness off the energy business increased income predictability and therefore shareholder value.
The Canadian solar infrastructure farm listed in the poke through stock exchange as an example of how we successfully executed on the strategy now we are exploring leads to expand this approach in other regions.
MSS site.
Q4 revenue reach.
Good in six to six meeting dollars.
The underlying gross margin improved 380 basis points quarter over quarter to 27.1% season I grossing shipments.
Especially new U.S.
People he asked piece.
And lower blended cost of production.
One of the key drivers of Canadian Sonal sector, leading margins.
It's our focus on profitable growth.
For example.
Over the past few years multi crystalline mulches have accounted for a greater share of our product mix.
This leverage is our leadership in multi technology provides customers with the most LC elite competitive products and delivers an attractive market due to the lower cost of production.
At the same time.
Our manufacturing capacity has the flexibility to produce.
Multi and mono, which allows us to respond minimally should market conditions change.
Given the latest supply and demand dynamics, we have recently shifted some of our that's the over to mono.
We also continued to innovate.
In 2019, we broke work record you multi crystalline sell conversion efficiency three times in general our latest record was announced a few weeks ago. When we achieved 73.81% efficiency for in pipe large area multi solar cells.
These R&D activities allow Canadian solar to stay at the four from.
Technological innovation as we continue to introduce more high frequency modulus, a 400 plus one.
Now, let me call comment on guidance for Q1 and full year 2020.
The first quarter of 2000 tons do we expect how to model do shipments to be the wrench off 2.15 to 2.25 Douglas.
Including approximately 250 megawatts of module shipments for our own projects that may not be recognized that's remedies.
Total revenue for Q1 expected to be in Orange off several hundred 80.
To $810 million.
Gross margin is expected to be between 26% and an 8%.
For the full year of 2000, punchy, we expect too much to shipments to be their rent of approximately 10 to 12 Gigawatts with total revenue expected to be the wrench, all $3.4 billion to $3.9 billion. As we noted in the press release, our guidance is based on current.
Views gave them the existing market conditions, which may be subject to change due to uncertainties, including the ongoing cobi 19 and Danny.
We were experiencing strong demand across all regions AMPU. The past few days as we started to see some delays some weakening demand.
We're closely monitoring the analyzing market conditions, we have to globally diversified revenue base and tight control over the supply chain, which keeps us significant flexibility can.
Just to external change.
Our long term outlook remains optimistic as we continue to execute on our strategy and create value for the company and its shareholders now let me turn over the coal to we from for the afford we view off our financial results unless its risk mitigation strategies.
Please don't Pease go ahead.
So if you're yes.
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And it's one of the line.
Thanks.
Oh.
For 101.
21 person sequentially over Q4.
Uh huh.
Let's see them by.
The margins.
That's stable.
Subtract above all that.
Oh.
Yes.
What sweet corn too.
Tom system, because on the year over year.
And with guidance.
As you look cool infants HM we sold several large solar power plants in the U.S.
We knew.
The cell cycle.
That's for sure.
Such that 29.
No.
Oh, yes.
Which we.
Our guidance.
He was 28.
The beauty of all business.
Oh.
Once again.
The cycle.
There will be strong.
As a result.
Deliberate office.
20%.
In addition, our.
Our module revenues.
Increased 5% year over year.
From 200.
HM 226 million in 29 team.
This includes cells of system.
And Oh I'm sorry, he says.
We see all modules.
Topline.
Canadian solar.
Yeah colleagues for 17.
Revenues from 29.
How far you love them.
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We expect this trend to continue.
Yes, it's pushing the team from manufacturing technology.
[laughter] integrated products and solutions.
Particularly related to success story.
The two pool.
On the line gross margin for the company.
Accordingly.
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Was 24.3 for size.
So do you places points higher than Q.
The improvement mainly driven by higher.
Gross margin.
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Gross margin was 20.5.
Hi goals modeling.
Hello.
2011.
While our business.
We continue to.
Total operating expenses.
Hi.
Good morning audit <unk>.
By suites.
To.
Mainly driven by higher shipping.
And the labor cost associated to the higher supplement.
Let's move onto the liquidity and a bottoms.
Oh, it's pretty easy.
And then lastly.
Hello.
However, given the muscle circumstances represent a more cautious.
Culture.
Subsequent to that number.
Yeah.
247 million Operatings hospital in Q4 29.
The 600 million in the four yeah.
We increased our total cost position to 1.2 filler.
Hi, just summit.
On the system.
We reduced our total.
Like.
1.95.
And then so I wouldn't look.
Total debt.
Some dot com beautiful, 50% that's helpful that solve some of this week.
Two years ago.
No.
No.
The full repayment.
20 Twond.
<unk> of the filter.
Oh.
At the Chinese that.
Oh, we do not.
Enrolling all the goal.
We all do hobby lobby.
Credit facilities.
Only 2.2 billion of the draw.
Oh gosh.
Oh.
The press coverage was a healthy.
For insulin cod.
29 thing the high level things Ttwenty four team.
Part of all financial discipline.
We continue to maintain tight control over walking castle.
Typically group third.
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'cause finished goods.
Over 70%.
Profit to the customers.
Mmm 29.
I'm going to mobile was 62 days.
No what them both.
Yes.
Likewise, we have tightened control cost receivable, which is currently 60 black.
Well, the 19, Oh provision for salt.
Well just over 1 billion.
This is incredibly low what company sweet corn to billings and revenue.
Overall, we have consistently.
Your past cycles.
Welcome to 25 days.
Yes.
Nevertheless, we remain on managing risk from every possible to Russia.
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South of 29 team was 291 million.
Associated with our capacity expansion in Thailand and again.
The while other classes.
He was on sentences when the Cohen Mockups environment.
We have decided.
So who did our capital expenditures in 20 Twond.
I don't Council, Oh, no essential spending.
This is why all the twentytwenty and possibly lower though what do we previously.
Hi.
Oh got caught up.
We thought it was quickly.
The bottom softer than.
Given the.
Yeah, the coolest democracy I also like to out at all.
Oh that's exposure.
Yes.
Relative to I'd be.
Our topline and the margin as a larger portion of old revenues are dominant denominated U.S. dollar.
A large portion of our coughing.
Dominant <unk>.
We also.
Exposures to covances, such as the for them.
Australian dollar.
Which helping you facility.
Welcome to the U.S. dollar.
Dissipating currency fluctuations to continue we have increased as a husband ratios of those could unfold.
Reduce our risk exposure.
Of course hedging comes with a cost so we take a balanced approach.
Got it is willing to run the risk of southern level loss, while keeping the hedging costs at a reasonable level.
To sum up.
29 team in the strong business and the financial position.
Our liquidity problems healthy.
Cool.
Well, so we're taking contingency Matthew us to prove themselves or the minimize risk exposure or co in the marketplace.
Meanwhile.
I know financial.
The flexibility into Christmas switching Yep Yep.
The global economy recovers.
With us.
Lots to open the call. So your question operator.
[noise]. Thank you.
And gentlemen, I'll begin the question answer session.
Two questions. It is filed wanting the telephone keypad and retaining today.
And to Canterbury classes the talent ASCII.
Once again for your questions this Taiwan telephones.
First question comes from the night of Colin Rusch of Oppenheimer.
It's called.
Hi, Thanks, so much guys.
You look at the initial indications of weakness from your child keep you looked at more specific about which geographies and which portions of Ah. Your sales channel are seeing that weakness specifically.
For a bit more color on the direct sales channel, where we know your does.
Have a defensible position a little bit of outsized margin there.
Well business yen and Oh, right on Crescent [laughter] So ER.
I think.
The immediate impacts actually comes from the that central market and we're observing the channel inventory is increasing and that demand is slowing down so not to you know not not slow down, but we made we made assessment.
As of today and the jump off from a from a two one is a very low at this nothing into one in Q2, we start to observe something slowing down.
Oh, we know that things are changing so the residential markets slowed down mainly coming from a Europe and the U.S. and I'm not that has not material yet you know significantly.
So oh.
Japan, and India, which you said the most most profits come so comes from we do not see slowed down so everything's few normal.
And because of the second the second channel is it's a probably the impact on my Tc.
So but that is the more more about.
Second half, which you said last scary, some Q2 and some mostly said second half.
So we have time to remedy back you can find the other demand so uh huh.
That's a one stop the impact that we are we're observing.
Perfect and then on the project business and your construction timelines.
Have you looked at a priority list, yet which projects may be delayed for work stoppages or you know you know shelter in place type mandates.
On a country by country basis, and you know what that waterfall looks like at this point.
[noise], we're following that situation on daily basis actually I'm today, there's not even single solo project construction has been installed.
We even we checked a lot we have almost nothing easily so with them know what's happening there, but it's been a U.S. So the construction is proceeding did not being disrupted with no disruption.
Okay. Thanks, so much less.
Thank you.
Our next question is something I know Phillip Shen with Roth capital partners.
Okay.
Hey, guys. Thanks for question.
No I know you just shared with Collins.
You are observing.
As it relates to the impact of crunchy bars and.
The markets throughout the World U.S. Europe, but was wondering if you could share what do you expect to happen. So for example, you guys have experience.
<unk> virus and Ah.
Really effectively.
Dealt with it as a country in China.
But.
What do you expect given the measures that are being taken.
In Europe in the U.S. or how do you expect for example.
Demand to change in Q2.
Never mind the observations today clearly in the past four days things have changed for the past few days as you mentioned in your prepared remarks, but play the game out for US what this Q2 looks like maybe.
From a volume standpoint, I'll read down.
10% or 20%.
I know you haven't provided guidance, but just help us understand how Q2 demand could evolve.
Three and potentially in Q4, what does it looked like Vicor section.
Well.
Good question Oh. This is what we always do we always try to anticipate instead of being reactive at today's the sedation because what matters is actually the future. So no we're not a medical doctors and we're not very good magicians, and then that a I would say.
I would say sola is probably less affected by industry I'm parents others.
And our on our annual guidance already reflected our word jokinen for the year and.
Yeah, I would not say Q2 gonna be fully utilizing our capacity.
But I I don't think it's going to be disaster. So lie.
So I think that we're still optimistic about a sophie.
So are we have taking to the constitution, probably the least nothing immediate impact, but I mean impact to the ER rooftop is essential market and also the ickes impact I can see so Ah. So I think are we are we're all we believe.
Or the end you know our our assessment of the any demand for the year should be a steel okay.
Tom.
Okay no here.
Yeah.
I, Sean did you want to comment as well.
Yeah, I really can't.
The situation, Okay, sorry, I missed the children.
Good.
The only grown.
But what would have made our best estimate.
Okay great.
Shifting over to some housekeeping questions.
Was wondering if you could share.
And number of megawatts recognizing revenue for Q4 and how many megawatts.
Or systems.
[laughter] it's IROP.
I am so this is still in its around them.
I would point to one.
Okay go off on a pure.
Module sales in Q4.
Great. Thank you so I get to roughly in it.
ER ASP in Q4 about 20 cents can you.
Confirmed if that's right and then how do you expect a the S.P. the trend in Q1 answer the questions here.
You mean, they ask Pete.
Oh, yes.
Moving observing some oh decline on the ASP from Q4 into Q1.
However, our costs also I.
Coming down.
So you can see our.
Guidance for Q1, our gross margin of course, that's a blended between module and project.
At the eye for Q1 hour module gross margins still healthy.
So even with the ongoing.
Creation.
I think Lisa.
The grass with a complication.
I'm pricing, but I think the costs, we've already seen that to sell costs is coming down already last week. This week, so it's going to accelerate.
So a very quickly we'll see that the move from pricing module pricing and the upstream a material cost to be in parallel oh, reaching the balance.
Okay, Great one more big figures and Big picture question, you talked about yeah and building the new DNA for the company with systems in storage.
Was wondering if you could share when do you expect new revenue.
To come from systems and storage to be a meaningful Oh, we looking at six months from now to be a year from no I'm guessing krona virus might impact us, but was wondering if you could elaborate more on.
Your comment there about a.
New DNA for the company. Thanks.
The team actually it's actively working on setting up the value chain for this direction. So.
It's not the aside from the technology you know how.
It also you lost and setting up a technology partnership lead to the leaders in the industry and identify the companies that has the right and capability, but also them.
Cost competitiveness aside from technology.
A stream.
On top of that well have to set up a economic moderating off this.
Up this business line.
Besides that beyond that also theres legal there's financing element to hospice a business model. So we're moving pretty fast and there were closing one deal without where are we to close one deal I'm not sure one because there are certain impact from this.
Carnal virus.
But that were pretty pretty last minute.
The deal in terms revenue will come from a new coming next year not this year.
And in our project pipeline, we have a pretty big pipeline lead story to meet the requirements so that will be.
More or less we'd be our captive market. So now provide the foundation for the company to move to move fast and far in that direction.
Yeah.
Okay. Thank you very much I'll pass it on.
Okay. Thank you once again.
Once again for those assets.
This who wish to ask a question. These pesticidal wanting a telephone replay TV.
Next question is something that doesn't like Strauss of JP Morgan.
Yeah.
Yes. Thank you very much for taking my questions.
Most most of them, there's actually been answered, but we found a couple modeling questions. If I cannot so I understand it's early in the year and thanks, and certainly change, but no as we stand here today you what are your expectations for mix between the two segments. This year for the the energy the energy.
That's either on a dollar basis or on a percentage of total there so that would be helpful. Thank you.
I think that fits question better and so by Ah Yes.
Would you please give some color on the breakdown of all war.
So annual revenue guidance.
Well, it's somehow we anticipate discussions coming a that to be honest are.
We find not a little early to provide that given the situation right now so food.
And on both sides so.
So I I, we will provide that information when we have more clarity.
And maybe even though we matched his presentation, maybe a slightly later.
So that's not a I know, it's not I read answer, but I hope a healthy.
Yeah, that's fair.
And that's probably going to be the same answer for this next question, but are you refer to as we think about gross margins. This year you you've obviously got a.
A very strong start in one Q you know you're coming off of a 2019, which has the highest like you said for for several years in gross margin or do you think 2020 could be even higher than 2019 or I imagine it's still early to tell but.
Just wanted to ask.
I think that's what I'm trying to maybe are a little a bigger challenge than 2019, I think we'll have not consensus but.
That's a always I'm the guy always have faith and support effects I think a at least our business from.
From a a from dependent careers not affected and the we have locked who must older orders for Q2, and then you're going for second half we have.
Almost 60, 40, 50% already locked and demand and we assess now so it's a leading when we look at our different channels like different geographic locations.
Now, we'll realize that most up or our coffee.
It is actually last impact last affected by this current on wireless.
Japan Korea, and now you asked I think Oh, we have a project already locked and the module deal, where we already signed the contract and locked in for now we don't see bigger impact yet. Although there's also of course, there's certainly just moving forward, but I think kept the chance for.
Impact only TV the school contracts slow for this year because on funding.
So so we're still optimistic I cannot provide you an exact number on gross margin, but I don't think it's going to be on the 50 and also in 2020, we believe China lead to more students I think the dominant we've tried to promote the demand side, even the situation.
We're doing no right now so we're confident that actually we are the China demand how quick to breach the gap as well.
So it's not going to be under the day.
Once again once again, we believe solar is going to be the than the one of two leased affected in this industry. During this crisis.
Hi, Mark Mark This is Sean speaking.
Some color on the MODU and Oh, the Oh, the breakdown of Muldrew and pro their business.
For two so I'm trying to.
The older everything outside the module and assistant.
Yes, well probably be somewhere around 3 billion abandoned this will be a for the the identity prison years. However at the bottom line still fine.
The bottom line contribution, but in that margin contribution from the.
Probably the aside its could be a larger.
Oh, a alluded to in par was the a modular system business now all those numbers on non-GAAP and there will be some a cancellation.
It is between the two business, but I hope those numbers give you some indication for your modeling.
Okay very helpful. Thank you very much.
Thank you next question is something I lived in do you see ICICI bank.
Hey, Hey management. Thanks for taking my question Oh, My first question.
A couple with the demand. So you have just mentioned a few to capacities over already secured and there was 50% off the opposite to Mount stem the like 75%.
For your guidance already secured and but I would you like to know if you can see or some color.
No the for all whether we have some different coating side, you know that we see the car buyers impact on the check location and the my second question.
The gross margin side, we are seeing a very amazing buff muddying the full too and that we are improving the bus margin into first quarter.
Yes, so Matt on the spend a little bit more Bob the the break down the block model, whether it's coming from the we see a father the assay in the first for the so what is coming from the pull back a mix improvements.
We have more mono modules in the first quarter.
Mm than before what whether it comes on the top Oh, what is coming from the cost for the boxing you mentioned the sale price.
The time that quickly Oh, it's coming from all our like Haas boxing costs or maybe yeah.
That's that's my so question Okay.
Okay. Thank you also for the first question I, I think I I need to make a little correction. So I sat for live already hundred [laughter] under present books, and then actually yeah. You lost some already you too so our capacity transition.
Not hundred percent.
But that's not a it's not a have you lost so it's still okay.
So I saw over the year for the entire year, yes, we're like a 70, 75% the book.
That's for sure that's too and so a of demand wise Oh, we're still optimistic we're not just seeing any disasters and I wish to be a.
We used to be a healthy.
So I'll be the good volume and I remember looked at the last year's volume was 8.5 gigawatt from this year, we were and I look on the guidance would be too lumpy glass major growth.
We the market that could be similar microsites. So so so so it shows that our confidence or.
So the market it's pretty.
Healthy and.
The second question is for Q1, we do have a oh it depends a perfect from Japan that we sold and recognize that is a a decent.
That's a decent profitability.
However, although the mode you a part time.
No. The overall gross margin off the company's actually boosted by the this project from Japan mode. You a gross margins do about 20% in Q1, so still a very healthy.
Yeah, so not to be Patrick.
Hi, Joe I was thinking you're also offset a transportation right.
Yes [laughter].
No there are some oh this is hey, all.
Some countries so.
Closed the ports today and the whole planet Tomorrow. After her a highly protest because I'm going to happen in Brazil.
Oh God is also happened in India, but.
Fortunately I went off shipping that much but India as well you know a different government now it's kind of panic. So things can happen, but we have experienced a view we've got kind of we will blog Oh, a will allow you know or was that kind of stuff in China already.
Usually it takes a few days or what do you and then people come to says they realize that hey cargo doesn't really a.
Carrier barrows ice for humans, so let's say.
It's kind of level, but it does happen a little or no hopping passing those according to the short term impact rather than long term.
Okay, and the says that strong sense, yes, that's all my questions. Thanks.
Okay.
Thank you. Thank you.
Next question, it's fun denied John cigarettes diminishes.
Yeah.
Hey, guys. Thanks for the question I'm, just wondering can you give us an update on your share buyback program looks like you've got a little bit in December, but how much of people up to date and.
What would you expect to complete the pen fine.
I'll leave that to be phone.
Hi, Thank you John because wasteful see a soccer buyback.
It's still going all.
Hello.
Are there.
Hello.
Thanks.
Oh sort of owning study and from another location.
Yeah.
We will probably lost yes.
Right.
To sum up there.
Yes, we executed the buyback in December.
We also executed it recently.
Gotcha.
Looking at the marketing or the purpose is to number one to support.
The share price for a certain level.
Number two who buy back when the Salt life is way below book value. So we can create value for the shareholders. So yes, we are executing though the.
For the Thirtyth it owns a reasonable eat.
Thank you.
On a come back to why they will try not to have more discussion.
Okay. Thanks.
[noise] spec.
Thank you once again to ask a question. It is part of wanting a telephone.
And wait we need to be in now.
Next is attics the of you'd be yes. Please go ahead.
I've got two questions one that regarding to the module price. So what's your wheel a along the module price across the year I do think if there's any chance that the mother, probably need to be caught a lot to supplement the demand given the current 11 situation.
And the second questions about the modern technology. So I do know that they love your thoughts of labor is applied across the supply chain. So do you think there could be something major impact from somebody like a size the waiver in itself and the what what you are doing to prepare for the potential change. Thanks.
Okay. So first question.
Pricing.
Actually I think there we're seeing out of the Spanish who are already seen a bottom.
And actually I'm seeing that we bombed moving to second half I. So the demand is actually a sum up the volume demand will be such a shifting.
I'd say probably into a second half so he will create certain.
Certain search demand surge a against a better capacity. So Ah Ah. So bankable capacity. So this is what we're observing and we're observing we believe most of the volume.
Most of the volume this year will I would say 70% of the bottom. This you meet with I should my top five among manufacturers. So this is or what is happening I saw being part of the top five so we we do you see a inaki men.
Matt is that there plus I. So so a and also the China projects. The 40, Matt a 40 gigawatts of trying to project to admit it would be mentally in second half. So that's why we believe a price is or at least stabilize and Mclaughlin two seconds.
Uh huh.
Hi, Alex I would like to address the technical question first question is mono versus multi.
Oh, no matter, how far less statistic shows in 2019, we had higher second if at higher for me for a higher gross margin all molecule product in a mono product.
Percentage wise you know we provide some numbers were shipped a way more that this will shift like 70% multi versus 30% mono.
Okay and on average market in a multi there's still higher than model. So are you know us metal fire losses.
Leader in certain technology, you can demand.
Good margin in this case, well one of the overlay leading player highpower multi solely due to buy a high margin. We were also a ship there are good and hi, hi, qualitative mono product and certain mark So those part I also help.
Cool pool.
I've got to more than 20% goals margin.
2019, so that's the in terms of a mono versus small he was the Oscar.
Your first size has met all of our Canadian solar yes, the driver of the new with those Dander example, a with a first line to interview is so high High school product. We just based on the was 66.
In America, we put aside Hakim neutrasal, you're talking about time nobody has been well ahead Canadian so those first one new product also it's also it's also one of faster we can debt.
Rather leave at relatively high gross margin in Tucson, 19, maybe oclock years, So youre right.
Technology and product.
Yes on technology.
The innovation is ideally.
You probably know enough some of the company.
Since I know promoting even larger wafer.
I believe there's a limit of a well diversified our module size and.
Pneumonia is not to the bigger the batter, you'll still have to be able to handle it no carrier.
In the installation of site or are you going.
On the move through the year to fall. So there has to be pilot I believe also in a module a strike to wipe out in the June highpower.
And installation efficiency and also a also oh good so take a helped us with protect the health and safety of installation.
Yes.
And also I think yeah, actually actually you need to balance between that any feet off a bigger panel and the cost at our men pending the reliability of the module itself and also the tracker.
And also the possible costs order one the workers have to slow down there movements on the installation.
And then I suppose a lot infectious you need to worry about then that this now and we first too big to 10, then our press stream, perhaps a little benefit which they would not that galbo too, but may not be willing to pass it onto our upstream and downstream got used to you last capex, who reviewed the cell line and the module line.
So so it's still about yeah.
Efficiency and I don't see nice about just a slice.
Okay.
Thank you Shannon.
I said I. Thank you.
Thank you once it gets asked the question it is Taiwanese telesales and wait cleaning.
My questions. Please press star one in late teens.
No question at this time I'd like to say the concept of harvest activity and management for closing remarks.
Okay.
Thanks, very much and the thanks.
I'm not wanting to join the call and if you have I know you further classrooms.
Okay and a return.
So email or.
Oh.
Yeah, California, our Oh Department. Thank you I'd have a nice day.
Thank you.
Thank you, ladies and gentlemen, Texas is a conference for today and thank you for participating you've now all disconnect management fees do stay on that I know Fisher back to the next call. Thank you.
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