Q2 2023 Daqo New Energy Corp Earnings Call
Yeah.
Good day and welcome to the Docs, you New energy second quarter 2023 results conference call.
All participants will be in listen only mode they need assistance.
The single conference specialist by pressing the star key followed by zero.
After today's presentation or what happens to me to ask questions. Please note that this event is being recorded.
I would like to turn the call.
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Sometimes are needed to Investor Relations director. Please go ahead.
Hello, everyone I'm Anita Sue the Investor relationship talking you and I. Thank you for joining our conference call today that can you actually just issued its financial results for the second quarter of 2023, which can be found on our website at www Dot EQ solar dot com. So today attending the conference call we have.
Our new chairman and CEO , Mr. Shao Lee Schiel, our former T O long guns, Zhang CFO , Mr Ming Yang and myself.
For the call today will begin with an update from Mr. Jong on our new Chairman and CEO , followed by his colleagues on market and operations and then Mr. Yang will discuss the.
<unk> financial performance for the quarter and the year and after that well open the floor to Q&A from the audience.
So before we begin the formal remarks I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth are forward looking statements that are made under the safe Harbor provisions of the U I U S. Private Securities Litigation Reform Act of 1995.
These statements involve inherent risks and uncertainties a number of factors could cause actual results to differ materially from those contained in any forward looking statements further information regarding these and other risks is included in the first word documents, we have filed with or furnished to the securities and Exchange Commission. These statements.
They reflect our current and preliminary view as of today and maybe subject to change our ability to achieve these projections is subject to risks and all certainties.
All information provided in today's call is as of today.
We undertake no duty to update such information, except as required under applicable law also agenda call will occasionally reference monetary amounts in U S dollar terms.
Please keep in mind that our functional currency is the Chinese RMB. We offer these translations into U S dollars solely for the convenience of the audience. So now I'll pass it on to Mr. Jong.
Thank you Anita.
Good evening.
Usually the operation of our polysilicon facilities in the second quarter.
2023 reserve.
In the production volume of 45386 metric tons.
Representing an increase of 11458 metric tons as compared to the previous quarter.
Our phase five a 1000 metric tons of polysilicon project in Mongolia reached full production capacity in June .
Production costs decreased by eight 3% from Q1 to $6 92 per kg.
Primarily due to improvements in manufacturing efficiency as well as a reduction in the cost of.
Manta.
<unk> great great Silicon.
For the quarter, we generated 230 million EBITDA with a strong operating cash flow and have continued to maintain a strong balance sheet with no financial debt.
That's the end of the quarter the company had a cash balance.
$3 2 billion and our combined cash and our banking note receivable.
All forward billing yes.
With the addition of our new inner Mongolia phase five eight facility, our total any poly silicon nameplate capacity.
Send it to 205000 metric tons for the third quarter, we expect our total polysilicon production volume to be approximately 55000 metro tends to 57 metric tons.
Representing an increase of 21% to 26% as compared to Q2 2023.
Full year production is expected to be approximately 193000 metric tons to 198000 metric tons of polysilicon, representing an increase of 44% to 48% as compared to 2022.
And based on Oh.
Hey, Joe our new semiconductor grade Polysilicon project with 1000 metric tons annual capacity is expected to start pilot production by the end of September .
This year.
With our pori digitized and highly automated production assistant that optimizes operational.
Fishing to improve its cost structure and further enhance its production of product quality.
The N type of poly silicon product.
We are confident that our inner Mongolia project will further enhance the companys competitive age.
Polysilicon industry experienced increased challenges and substantial price volatility during the second quarter.
Several new polysilicon facilities and new entrants finally started production with some reaching full capacity production capacity in the first half of this year.
The shortage of poly silicon off the past two years came to an end.
The increase the pie admittedly led to relatively oversupply and excess industry inventory.
In an effort to gain market shares in theory, a quality product.
[noise] entrants and some established industry players engaged in aggressive pricing.
Correct patients offer lower future pricing in the market that led to delays and reductions of downstream customer orders as well as our greatest comprising required by customers.
This is Jason wasn't significantly in the second half of May.
Inventory reduction efforts by leading potent produces led to race to the button.
That's all polysilicon prices decline by approximately 70% at the end of the second quarter compared to Q1 levels.
In the second half of June polysilicon prices reached button and a customers began ordering aggressively that's the lower prices by middle of July we saw an approximately 15% to 20% the price recovery compared to the button Richard Kim.
Recently, we have also seen an increase in ASP.
Premium for N type poly silicon with a meaningful increase in demand volume, we expect that this trend will further benefit us.
That's right transition to next generation N type technology.
We shipped 53502 metric tons of polysilicon in Q2.
Meaningfully more than our production level and a substantial increase over our Q1 shipments.
Polysilicon inventory at all already know Xinjiang facility decreased to less than a week's production volume.
Our facility in inner Mongolia is newly established its products require customer qualification before we can ship meaningful volumes to customers and qualification process took longer than anticipated due to market volatility during the period.
For the quarter with customer orders on hand that covered all our inventory we had practically sold all shippable products the customer qualification process for the put us all in the Mangala facility completed that successfully in July .
And that's the end of July with brisk customer orders and demand we had a further reduce our polysilicon inventory to a very healthy level of approximately one week of production across our two facilities.
The second quarter, we record it recorded.
Approximately $19 7 million U S dollar and foreign exchange laws.
Well approximately 26 cents a D S near the end of April the company received approximately let me be $4 96 billion in cash dividends from its subsidiary Xinjiang, Taku, which was approximately $716 7 million U S. Dollar.
Based on the exchange rate on a date.
Dividend funds were received during the quarter the company converted approximately.
1.85 billion Lemon B to U S dollar to fund our share repurchase program.
The U S D. Two does that mean.
The currency.
Chinese currency.
Exchange rates fluctuate significantly during the months of May and June and as required by accounting standards. We record. It we recorded an unrealized foreign exchange loss, primarily related to our quarter end cash balance of let me be $3 1 billion.
Held by the company in an all tissue offshore accounts.
Regarding the company's share buyback program at the end of July the company had already research.
Purchased all find that one 6 million eight yes.
Ultimately $188 7 million U S. Dollar how does the kind of program with average cost of approximately 45 pilot study to U S dollar per.
Combine that with the program completed in 2022.
In aggregate the company has already repurchased 6 million ads for approximately $308 6 million U S dollar.
Continuous cost reduction in solar PV products and the associated reduction in solar energy generation costs I expect it to create substantial additional green energy demand, which is likely to exceed it most analysis expectations. It is generally expected that solar PV.
Where eventually become one of the most important element.
Just to power the wood, Yeah edition as the solar PV technology to keep us involved and we believe that the increasing needs for polysilicon of very high purity, such as N type poly silicon will help differentiate us from our competitors, while most of <unk>.
Our competitors will likely struggle with the current market environment.
Yes.
Outlook reflect stocker, new allergies current and the premium.
View as of the date and this press release and it may be subject to change the company the company's ability to achieve these projections is subject to risks and uncertainties feet Safe Harbor statement at the end of this press.
Release, now I'm intend to the call to our CFO mean, please go ahead.
[noise]. Thank you log in Hello, everyone. Thank you for joining our needs conference call today.
No I will discuss our financial results for the second quarter of 2023.
And news for $636.7 million compared to a 709.8 million in the first quarter of 2023 and $1.24 billion in the second quarter of 2022.
Decreasing revenue compared to the first quarter of 2023 was primarily too but due to a decrease in average selling prices.
Indicated by increasing cellphone.
Gross profit was $258 $9 million.
Compared to $506 7 million in the first quarter of 2023 and 947, new in the second quarter of 2022.
Gross margin was 47% compared to 71.4% in the first quarter of 2023, 76% in the second quarter of 2022.
Or decrease in gross margin compared to the first quarter of 2023 with primarily due to the average selling prices, which was partially medicated by lower production costs.
Sell in general and then instead of the expenses or $43.3 million compared to 41.3 million in the first quarter of 2023.
$14 Formula in the second quarter of 2022, the slightly higher SG&A expenses compared to the previous quarter was due to higher shipping volume.
And higher shipping expenses.
Hey, John expenses during the same quarter also includes 20 for that.
Five nine and non-cash sure based compensation costs glued to the company's share incentive.
Compared to $28 million in the first quarter of 2023.
R&D expenses were $2.2 million compared to 1.9 million in the first quarter of 2023, and 2.7 million in the same quarter of 2022.
Arnie expenses vary from period to period and reflect orange activities that take place during the quarter and.
Most of our R&D actor.
Activity for the quarterly related to.
Productivity improvement related activities.
Foreign exchange losses war $19.7 million compared to Neil in the first quarter of 2023, and and also in the same quarter of 2022.
The significant volatility fluctuation U S dollar too.
Chinese and you'll get an exchange rate during those quarterly salt resulted in primarily an unrealized foreign exchange loss.
Later to our quota and cash balance of RMB 3.1 billion helped by the company in an offshore accounts.
And as a result of the above mentioned income from operations was $214 million compared to 463.8 million in the first quarter of 2023 a knife.
127.6 million in the second quarter of 2022.
Operating margin was 33.6% compared to 65.3% in the first quarter of 2023 74.6 per cent in the same quarter of 2022.
Net income attributable to talk on your energy shareholders was $103.7 million compared to 278.8 million in the first quarter of 2023 $627.8 million in the second quarter of 2022.
Ernie for basic a D. S was one dollar and 35 cents.
Hard to $3.56 in the first quarter of 2023, and eight dollar and 36 cents in the same quarter of 2022.
Just a net income non-GAAP attributable to talk on your energy shareholders.
Non-cash you based compensation costs was the 134.5 million compared to 310 million in the first quarter of 2023 630 million in the same quarter of 2022.
Ernie for basic 80 S worth one dollar and 75 cents compared to $3.96 in the first quarter of 2023, and eight dollar and 39 cents in the second quarter of 2022.
EBITDA was 230 million for the quarter compared to 490 men in the first quarter of 2023, and 155 mill in the third quarter of 2022.
No margin was 36% compared to 69 present in the first quarter of 2020, 376.8% a quarter of 2022.
Now on the company's financial condition.
That's what the June 30th 2023, the company had.
3.16.
And I billion in cash cash would call Clinton should in cash compared to 4.1 billion us of March 31st 2023.
And 3.3 billion as of June 30th 2022.
As of June 30th 2023, the noticeable balance with some hundred $98.5 million.
791 million Us of March 31st 2023, 127 billion as of June 30th 2022.
The superbowls per.
Per cent bank notes with maturity within six months and.
And now all the company's cash flow.
So the six months ended June 30th 2023, net cash provide by operating activities with 786 million compared to 1.130, yeah in the same period of last year.
And for the six months ended June 30th 2023.
Cash, you're saying busting activities with $495.7 million.
Comfort in their cash you're saying activities of 80 million in the same period of 2022.
And they catch you, saying lets me activity in the first half of 2023.
Was primarily related to the capital expenditures on the company's policy can project.
By the the city and I'm going to go there.
And for the six months ended June 30th 2023, net cash using finance activities with 477.5 million.
Compared to Nick has provided by a financing activities of that one.
0.5, 8 billion in the same period of point and 22.
And then cashing stinks, when they say action in the first half of pointing twenty-three.
Another way to.
$174 million and the company share repurchases at $306 6 million dividend payments made.
Paid by the company issue John Taco associated me too it's minority shareholders.
And that concludes option her remarks, and operator will now open the floor for questions.
Thank you.
That will begin the question and answer session.
That'd be quite through my purse or the one on your Touchtone phone are you using a speaker phone can pick up your handset before pressing Mcgee.
Throw your question, please brush starve them too.
<unk> paused momentarily to assemble the roster.
First question it'll be from Bullshit loft Mmk Ma'am. Please go ahead.
I've only thanks for answering the questions.
Logan Ah sorry to see you a reason.
And was wondering if you could touch on.
Your personal situation and.
Give us some color as to you know timing and and and do you know where you might do that.
It sounds like you are from the belief that you're.
Leaving effective immediately but you're on the call today. So I was just curious you know.
If there's any more you can sure. Thanks.
Thank you I think are you know are working for the company more than five years.
And no everybody well and.
And also I remember Oh, a new C E O and the chairman P C dot cruz longer than me.
He also knows these industrial there will even during the past five years working together and so I think you know doing a personal February personal reason, leaving but I think a you know a few Ah 10 over.
The control to Mister shoot I think you know I I hope I think of it where.
You know the rest of the company to the next you know a high step.
Did I answer your question.
Yeah, very cute Logan.
Shifting over to.
Pricing you know you talked about the dynamic.
Dynamics of how crushing so cute too and then there was a bit of a recovery.
Can you talk about what you see for probably still comprising.
Three Q4, and also 2024, you know how much how much higher or lower could probably probably shouldn't go in 2024.
Oh, Stinker, you and last year Q for during the season, though and also some you know downstream clients.
Think that they are you know planning to stop it you know demand.
But kept accident. So almost you know the five biggest Ah policy like implants have the inventory by the end of last year.
And about a Q1 win because Chinese new year is coming you know in February so demonic immediately come out so in queue wanted the price continued go up back from I think a cure for the button almost the $80 80, let me be your application.
Two 240.
But we really because I think a new entrants.
The human Torrey Digesta. So immediately I think came out to buy the I think in May and June the prices continue go down, especially I think in June the price almost go down to the button.
Basically I think of you know break even even I can call and let me be you just go to like you know 55 to 60.
Then you know for some reason as you know there are by the end of last year last month, I think two company I'm not mentioning okay. They have I think the facilities you know have some support or an a bomb you see almost a one off if you could play almost fall pushing down oil production.
So I think of right now besides that I think of the market to come back. The odor is coming I think you know in the pipe line, especially some older but yeah.
If you continue we see in Q3 Q for so that the amount of it right now is a little hot so the price of them mailed back like in pipe is around 83 to 85 K G. P.
P type I think is around like a 65 Ah 6365, you know Ah per K G. B. So we think you know in Q3 <unk> excuse is a very profitable I think of these situations where it continues lofton to October then during November and December .
I think you know come on come up the winter coming.
Western countries, but maybe you know the Christmas Day, then Chinese new year is coming so I was thinking about doing November December or January and February the private definitely go too deep again.
Also I think as other if you'd like like dark who Mongolia, we are full capacity of running man like T. V. A they also the first the product in lingo there isn't that much very successful okay lots of year, they're starting transport I can still not full Quebec start running but as you are now tell the market they were.
Full capacity and running by next month.
So we see you know the supply and continue to go up so I think you know the next year. The publicity comprised even next two years.
Especially I think of you know a very clear the plays a big part of it can produce getting China right now is a different price from.
Probably silicon produced outside of China for example, like a Walker.
Because they can easily to track the ability to export you know usually I certainly can produce a final product exports.
Right now I think you know next two years Chinese policy to get maybe where you know stay at all maybe between I think Iran. Is 60, let me be to earn a 70 between 75, you know I think I'd like to you know channel.
That's what I'm thinking Okay. Then I think that these also will push I think some Chinese previews that cause it can prove that we're more outside to China to other location outside of China to produce syndicate.
Oh, so you can see that like a U S. I E. Oh really attract a lot of company right now Chinese company to do the Ah module I think it fell even waiver so I think that.
Tendency or continue to calming. So I think you know crowberry I think after two to three years I think the Chinese maybe right now the capacity is not only silica maybe a waiver sell always almost supply right now.
So that's why I called the Memorial Prize right now from two let me be power down to a near 1.4 [noise].
To walk that familiar with the good things because it returns on podesta is higher but that little that may be stimulated you know the installation, but also a lot of them even start eating continue going out on the market demand and install then go to agree also haven't come you know have province, especially in China. So is all trade off you know.
You're thinking you see the module probably go down maybe you increase the i-i unimportant, but meantime, you'll see that connects to the group delay also were affect the returns on i-i, So, but China right now the market is so hot we think you know the rooftop the F. L. U C. I think it's all going on.
So I don't think any problem within two years I think you know Europeans continue to go I think that's Hindu groups. The only thing is that all the labor Force action Europe is starting to solve and twenty-five cute too. So I think at that time, the Chinese Purdue that to move outside of China. So I think that's it I.
You see my what I was thinking you know to the whole market in the future, but I remember a dog who is the only white in China right now no that.
Produce a high quality product can compete with with Walker, So Ah, especially I think as the entire for sneaking continued to groups were already see the price difference between and type in a P.
Right now eight to 10, a M b a K G. So oh advantage is a very clear if you look at our cute too I think of the gross margin is almost more than 50% of them.
Actually it was still can't keep all gross margin, even let's say in Q3 Q for Steve about even coupons you were about 30 per cent I think 20 per cent is oh premium compare with all the player competitors.
Based on the quality of the cost effective on a scale.
[noise] great. Thank you along and those are a lot of color you said something very interesting and just now about how China Chinese producers could.
Lunch and ramp capacity outside of China.
The U S and and other maybe even Europe Ah. So I was wondering if you could even highlighted you man.
Right. So can you talk about like do you guys have plans to ramp up facilities outside of China, and then how many metric tons to see are there announcements already of who could be ramping in which countries and and what's the timing of when those things when those facilities could ramp in there.
Also you talked about this price delta between Chinese and non Chinese poly silicon pricing can you talk about what's the magnitude of that premium.
Is you know a few a couple of months ago.
I think it was something around $10 Delta now what is the non China policy approach now and and do you expect that difference to maintain or do you think that could ah get closer overtime. Thanks.
Basically if you look at that you know figure out today I always thought I was trying to sit again majority of the locker OCI and homework I think I'd forget it it's around 80 southern intense.
Cannot meet I think even U S market 50.
<unk>, let's say 50 G. W. I think Anita at least I think of 120000 metric tons right of course I think it is not only just a policy like a module. They may be also seemed to other stuff.
So we see basically I think you know Europe U S. Yes. It you know typical market is not only besides you'll see the I think I I Ah stimulus.
Because also the political issue you see for example, the anti dumping the tough all those stuffs C V D 80, and plus I think of all the labor force that reaction actually all these I think that you know you can't see today for example, like Katrina I think they they used to walk on the tourists produced in Vietnam from.
Also I think I'm Exxon, but I'd do the same thing so I figure you a small can of right now the market is Ken absolved, Hi module price, it's already there I think.
Then as I think the U S market to continue asking for prom I think a memorial to sell in a waiver step by step required you know local lavation matures I think that's what pushed the capacity from you know a module sale in the silicon.
Any situation I think of what happened in Europe , you know so Europe I think you know from you have to I think in the future I think I'm not remember that maybe $85 65 per cent you haven't localization. So that's why I think a lot of Chinese player when moved to Europe that but today you see.
I think it was a poodle ecosystem I think of the environmental I think Ah middle East solve a solid in Asia, maybe the same as Ah China I think it can produce I think Ah Ah lowest cost effective module products. So it's a lot of them right now company right now because I think.
Go to the Middle East like a study.
<unk> and Oh man, you know caught her because they haven't 20th studying version you know you know the middle East and also the strike relationship right now plenty of a relationship with China. So we see a lot of training you see also a lot of news to come out you can't see a P. C L. The news.
With the volume best free right you can't see that and also you ask you also can see I think a lunky kinko the expansion in in in in the U S and Europe and then a lot of right now I think not only a module, but also I think a waiver.
Ah capacity right now is moving to to to Europe . So I think at least seems to happen I was thinking you know become global production global products. That's.
Good thing I think that's also easy I've seen in the market demand and supply and become more healthy.
I just came up earlier.
Yeah.
Ah Ah sorry to interrupt you just just to kind of focus the conversation a little bit just.
You were referring to you know Chinese Polish silicon producers ramping facilities and the you know outside of China. Do you are you aware of any of those activities and do you think you might rent probably smoking production facilities outside of China, and if so where would that still be the middle east and maybe South East Asia.
Or would that be some other locations. Thanks.
I think it definitely is I think a very I think you know the economic stimulus you know to attract a Chinese per user to move outside of China.
China to produce the the silicon, but it should remember that silicon paint is a capital intensive also you know my mental and it also has a chemical industry. So the design the permits all of these I think it has a very high a doctor also get a lot of research for example, if we go to yes, that'd be taking five years.
To finish the construction.
10 times, the public investments so it's impossible for us to two separate plants in a any any Chinese I think a producer two separate plans in U S.
Then if you go to other places like you know Middle East you have two considering if he's had the plans in and outside of China, What's the competitive age right. If that caused the final quote are still using the local then is no competitive a the only thing is is trust admitted it pulled up can go to Europe go to the U S.
Man meeting something today, if you look at the T V link I think I didn't look over the last week I think Ah Ah Ah Ah Ah.
International probably silicon stairs 27 dollar too I think it's $35 or whatever.
China right now is around like $10 to $11. So the difference is that I think that or continue two two in this the reason because the I just mentioned that outside of China, Citic, only 80 southern intense.
No way within two years can increase we also didn't see any recent player for example, Oh see I work at home locker the expansion.
Oh, we also didn't see any China Chinese previews that is go into planning to separate tents outside of China at least that way now we didn't see any news.
The alcohol is a little different because we right now.
Listening to Us then.
Also listing Asia is so full.
Company that we cannot compete Dennis with I think Asia company. So the silicon we only can do the Asia. So that's why we we'd be careful I think with the new camera and the C. E. O I think that'd be stitched shoot I think he has the future planning I think Ah, yes, we're looking to study anytime.
Plausible.
Okay that that's really a very good color. Thank you. One last question for me you know, we recently wrote a and Ah.
That long jeez.
Jane's products and the U S U.
Using.
Tom way Poly from you know, maybe four or five months ago.
Was denied entry into the U S. I know you're ramping your inner Mongolia facilities.
What is what is your.
What do you think your ability is to import Europe Holly.
Ah through South East Asia into the U S. Now are you a little bit more pessimistic given them as long as you use situation or are you stalking speaking cause you you have a true smoothly to to.
Of course, thank you.
Frankly speaking you know I'm very pass it mystic the reasons, because we all come tumbling situations that may be a little different.
That you know they are I think have a different location I think the U S.
I think it'd be obtained.
Lunky the reasons it because.
The whole global they may be used you know she is yeah, I think silicon stole it cannot improve you know.
Use right.
So yeah, we have to see because at least a moment because I'm pretty cold I think of conflicts.
Think what I Wanna say, it's difficult to clear any clear right now can be traceability anything that can produce in China can be you know pass the traceability too small too yes.
<unk>.
We can do to show even gudea, starting from O. Two industrious citizen to silicon powder to silicon produce the whole value chain to show I think.
We don't know alright, we have to try it right. So I can tell you, but we will make our efforts.
It's very long and thank you for taking all the questions I'll pass it on.
Great. Thank you so.
Thank you <unk> question a week from Amarillo Jeffries. Please go ahead.
Thanks, a lot for a match amount if I'm thinking my question and also Ah.
Happy to hear that I'm gonna keep moving on an expert entrepreneur.
Right.
Yeah. So my first question is from.
Ah.
What is the topic plan for the remainder of this year and next year.
[noise], Okay. So if you look at that.
The calf Capex plan, Okay. So I would say in the first half.
So I think for from our financial statements by approximately $495.7 million plus you think investing activities.
And that's pretty much.
Aw I used for Capex, mostly late to go the face too.
Some of it is Ah.
We'll go down face one.
And then for the second half, we're currently planning an additional $750 million.
In Capex.
And Agribusinesses.
Mostly used for and I'm Gonna go with al fish, too which is under construction.
I know.
And then Ah less than 100 men will be in the final pay much worried too and I'm going to be a.
Face one so I think in aggregate for the full year, where plenty of roughly 1.25 billion.
Thanks, So that's the current Catholics plan right now.
Thank you. So another question it seems.
It seems the athletes selling pot pricing true choice.
Ah lower than the average market price then.
In the market, so we'd like to ask Hulk.
Somebody standing mortgage at June .
April and what what is the what is the.
Between different.
Practice husky.
Chinese.
First of all I don't know, where you got to the S. P. A in a market as P. Then you can you know make up this anywhere below the S. P.
I can tell you that because we you see we Ah Ah the company Digest all the inventory so basically yes, the way sliding over.
This is a very competitive but compare or quality I do think it is a challenge ball. We're still has a very profitable. So if you look at you know totally I think their whole industrial together I think of the increase.
The Providence second call. It a almost cutting has less than half we used to have a modem.
Increased a half cup of have more of a high them to him.
So I I don't think you know U as a Apple Apple you know I still think we we selling pretty good I think I S. P. You know to the good declined yeah.
Because the guiding that they're sending out around 120, RMB bocchino. So I saw a number of.
Around 97 or 98.
Actually that's why maybe there's some tiny difference I'm not sure.
Yeah, it's maybe not Apple to Apple you know.
Really you know the we we were not uncommon for other company, but that's the fact that we we we are the I seem to figure out what tell Ya.
I understand so.
How about a D a share buyback Ah pace because.
Ah the Bipack, Yeah Ah cute tool was not a direct question. So can I assume the company will accelerate the Bipack Ah yeah.
Bought in 500 billion left.
So so yes, I think we still have to find the million dollars or more than $100 million Ah Ah Ah Ah Ah the company the parent company Ah she in the off shore accomplish we will use.
For the share buyback program.
And share buyback program continued to be in place it has not been changed.
Certainly we will look forward to support the share price cause, especially now with the new Chairman seal on board and I think there's a lot in your new plans for the company and certainly I think you know obviously subject to market conditions are in our share price.
Another factor is things like that yeah, but but we will continue Ah Ah Ah to execute washer by that program.
Sure I think it would go into finishes several hundred many purchases program right by the end of the year.
That is the current expectations I need it.
Right.
Thank you so yeah, that's quite often.
And I think my last question is what is your view on.
On a Spanish.
Ah Ah Ah.
Some of the peer saw actually having.
Concrete due diligence Ah and Saudi Sharron, but yet we are also investigating.
The.
Planning that would be all other patients boost the mall.
Palestine ball feasible for for Us.
Okay.
We did investigate in overseas expansion in the past actually five clay actively and we did actually even stand on our teams oversee 2222.
[noise] villages.
And we continue what you think.
There are a lot of challenges village overseas expansion, particularly influenced simpler around.
The the higher production costs and stay on the ability of Ah the the price.
Premium and as well as Ah the hockey.
Mark opportunities. So so well, we certainly are continuing to monitor the opportunity.
Now the company has no plans to do overseas extension.
Understood understood. Thanks, a lot my Ah Ah Ah Thanks, a lot.
Okay. Thank you. Thank you.
Thank you.
Thank you. The next question and we'd come from G trial, Oh Goldman Sachs. Please go ahead.
Hi, Thank you for taking my question can I ask what's the portion of the entire policy for the first half this year and how what what kind of a portion would you expect for the four year and also we know that the second quarter operating cash flow you've actually neck.
Can you also sure why why are you. So thank you.
Okay. How old is he tell us. Thank you so much for your question.
So with regard to entice so the protests percentage keeps improving so in Q why it was roughly in the range of 10% to 20% actually in four Q2, we've already increased added to the range of.
20 to 30 per cent I think based on the company Ah Boston, the mortgage conditions and the mortgage marathon the customers and also the price premium.
Afforded in the market.
Oh, sorry, I think towards the end of two two now that price P me anything about 10 to 15 RMB.
But for kilogram range for anti Ralph at the P. Titled We are actually.
Modifying our process of optimizing our process to produce more and type I I think in the second half right now our expectation is that N type will constitute somewhere between 30 to 50 per cent of all production.
Shingon as a more mature process.
And but the equipment has a little bit more limitations on the entire percentage, but but we think we can improve it further behind him a bully in the process of improving quality and wrapping up so we're very optimistic that overtime Mongolia.
Anti percentage will increase.
Meaningfully.
And they follow up on the second.
Second.
And can cook up here a second question again.
Sure quarter operating cash flow seems to be negative can I ask why does not.
The native cause cause for the six months, we have several hundred and 86 million.
I I think the operating cash flow.
Right right, but it seems that Ah first corner constantly feel like I'm more than 100 million. So it seems like the second quarter is Ah.
Thank you note.
It's probably related to our our bank no.
Let me, let me follow up with you on that topic.
Oh sure sure great. Thank you so much.
Okay. Thank you [noise].
Thank you. Thank you next question will be from Lucky when aim investments. Please go ahead.
Right.
But it's up to you Oh, you must vitamin C. So my question is Oh.
We have.
Benjamin team.
And <unk>.
You too all our candy already magenta <unk> plan to.
Logged in your goodness R D U E <unk>.
I think I know the I think the change of the new management team I think.
She is the chairman and CEO new.
He also has the biggest shareholder and under the control and the issue of control right I think they yes, maybe I think you know in the future definitely we were looking through some studying.
Ah, but it was still I think it was forecast oh her existing business and as we lay down. So he two five year strategy you see I've I've a stream redoing the industrial Silicon Meadow, then also where where the pilot I think at 1000 semiconductor product is the word come out Ah traveled I shouldn't starting.
I think a Q3, so all of Australia he didn't change.
Close to where you're looking at other opportunities maybe overseas and Ah maybe downstream you know, but but not right now we will announce Ah is that really.
Okay.
My My next question.
Ah Ah.
Wait a minute or two.
To call and tiny.
Because we have a lot of cash and.
Cash maybe somehow caller all our money capsule. So soon.
Cause he doesn't go panic.
I think privatization when they're going to probably that privatization is not to you know many men team to make machine.
And we have to go through the whole shareholders, but definitely in Washington is clear I think the variation between Ah Asia and you you have to share is is is is a difference in the higher so right now we only have channel it was going to throw Asia to declare dividends to buy back the U S shift.
So is empty diluted.
Can't see right. So I figured what do you think the price of it can continue the validation you just mark that can continue to go up but I want to remind you by that June .
June 20th July 20th said next year, that's the mean after we IPO issue after three yes.
The U S company holding 73% of all fish are we can't fairly starting to sell it.
So that's to me we have another channel we can't fail.
Yeah to get some money back.
Back to you it's marketed by that cause the U S shifts.
So basically what do you think in the future.
For the validation is so different you see we can't slow down to arbitrarily.
We will reduce the you know the circulating shifts you see and that's that's what I was thinking about pushing the market.
But.
I don't think so you know for a long time, because you know we also wanted to your <expletive> <expletive> hold us to get to you know to share all the benefits you know.
Okay. Okay. Okay. Okay. Thank you. Thank you that's all my question.
Thank you Alright next question will be from <unk>. Please go ahead.
Oh, Thanks management they'll take care of my questions is <unk> a couple of questions I would like to also one by one if I if I may.
The first question is do we got it you should buy back I just would like to confirm that's all current plan is that we are going to spend the entirety of the 700 minute <unk> most ambitious.
Am I correct. Thank you.
I would say, let me just say that I think there's some other million dollar program is in place I think there has been no changes to the I think certainly you know the the the the company and.
Imagine the team will continue to monitor the market and repurchase the shares.
Yeah.
Yeah, I think based on their share repurchase program yeah.
My phone question regarding the second quarter production number I noticed that will produce 45000 tons of <unk> that according to your post <unk> guidance, we should be pulled using you know around 55000 ton in San call. Sir May I know what is the reason behind 10000 tonne discrepancy alright.
Doing like any retrofits Wow, Oh U capacity, what's the reason behind and you know if we had <unk> can you briefly tell US you know what capacity, Oh, which in which province since that that way of doing a second.
I think I'm just looking at.
Our our previous kind as I can with guidance for 44 to 46000 times.
Oh production for two two so we actually produce more.
Pretty much in line with our previous guidance. So so it is.
They basically in line.
I think I'll sleep ramp up on inner Mongolia, we expect it.
And it's for the Q2 without without where we're expecting and I think 55 to 57000 metric ton, but that's reflecting as a full ramp up of doing them on go their facility.
[noise] Oh I'm, so so sorry, redoing any like retrofit in the in the second quarter.
I think if you look at the end of the queue, while wherever your inventory almost I think 25 10, so in queue to where could you produce the 45 is not as intense.
So then we're sending 51010 50 almost 52010, so we still have some you know any inventory and cute too. It's a 10000 450000.
Ah it's Ah.
Yeah, It's it's it's a 10000.
550 attendance, so I figure the figure is correct.
Oh, Okay. Okay. Thank you just a few more questions I I just wanted to know do we have any false hospital.
<unk>, followed up with me and I'll total production Maxwell 2024, and also I would like to know at this point in time aside from US how many produces in a <unk> a cable bill.
Manufacturing and type policy kind of Nauseous Scouts.
So I I think for 2024, we expect and types can be fair amount and 50 per cent I think in fact guy I think life, a little slowly ramped up there in terms of our update.
Update two hour optimize their shows on process, which doesn't have C. N type in the range of 70 290 per cent.
For the company, especially.
For next year.
A number of producers I think right now we are one of the largest producer of Ah Ah Ah Ah.
So far I've been having the market I.
I think the other main producers include Walker.
And then some from Asia Silicon and and there are some from college and stuff I think these are are the main ones.
[noise]. Thank you. So much my last question is on <unk> I think full amount large policy can produce it in China. It seems like we are the only one without any chance I'm sure with downstream customers.
Planning to form any John <unk> in the future and you know why we didn't inform any of them in the policy making.
I mean, we won't roll this possibility out.
I think in the past, we want to be kind of a pure play and really the primary merchant supplier.
Poly silicon and I think that that is that it very well, especially fascia right I think some of our peers I had Ah J V partner or minority.
Mustard, and you know have to fly a a sure a lot of they're they're offering come with the shareholder.
Obviously, I think with the recent.
I can try is actually a number of customers have approached us and because the interests and and you know doing minority or T. V. That's nice that's so nice.
Something that that we are in discussion, but but there's nothing concrete to report.
Okay. Thanks, so much for taking my questions. That's all for me. Thank you.
Great. Thank you.
Thank you and again if you have a question. Please press Star then one.
Oh, that's question <unk> Memorial Please go in.
Thanks for taking my question. My question actually was raised earlier I used up all the time so.
No further questions for me thank you.
Great great. Thank you thanks for joining our call.
Thank you.
A question and answer session I'd like to turn the conference back what word unless we need his shoes or clothes or in months.
Yeah. Thank you.
For participating in today's conference calls did you have any further questions. Please.
Thank you and have an awesome day.
Goodbye.
Okay.
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