Q2 2023 JinkoSolar Holding Co Ltd Earnings Call
Speaker 1: Hello ladies and gentlemen, and thank you for standing by for June co-solar holding for limited second quarter 2023 arms conference call. We had a question and succession.
Speaker 1: As a reminder, today's conference call is being recorded.
Speaker 2: It's a relation.
Speaker 1: Thank you, everyone, for joining us today for Zincosolar's second quarter 2023 earnings conference call. The company's results were released early today and available on the company's IR website at www.zincosolar.com, as well as on news virus services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website.
On the call today from Dinko Solar, Mr. Li Zhende, Chairman of the Board of Directors and the Chief Executive Officer of Dinko Solar Holding Company Limited. Mr. Janet Miao, Chief Marketing Officer of Dinko Solar Company Limited. Mr. Pan Li, Chief Financial Officer of Dinko Solar Holding Company Limited. And Mr. Charlie Cao, Chief Financial Officer of Dinko Solar Company Limited. Mr. Li will discuss Dinko Solar's business operations and company highlights, followed by Mr. Miao, who will talk about the sales and marketing, and then Mr. Pan Li, who will go through the financials. We will all be available to answer questions during the Q&A session that follows.
Please note that today's discussion will continue for the looking statements made under the State Haber Provision of the U.S. Private Security's Latelygation Reform Act of 1995. For the looking statements involving heritage rates and uncertainties, as such, our future results may be materialized different from the views expressed today. Further information regarding this and other rates is included in St. Nicholas' public following with the Securities and Exchange Commission. St. Nicholas' solar does not assume any obligation to update any for the looking statements, such as the required under the AFIC for low.
It's now my pleasure to introduce Mr. Lee Sender, Chairman and CEO of Dinkong Solar Holding. Mr. Lee will speak in Mandarin and I will translate his comments into English. Please go ahead, Mr. Lee.
Thank you for your attention.
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Thank you for your attention.
We have pleased to report solid growth as we overcome volatility in slight trend prices and in the amount sent to our excellent market network, the highly-apolite products and our highly effective slide chain management. Module limits in a second quarter were approximately 17.8 gigahertz up 36.2 percent, synchronously. Chimbers of the competitive and type module were approximately 10.4 gigahertz up 74.1 percent synchronously. We are happy and proud to be the first module manufacturer to reach the milestone of shaping 10 gigahertz of antide module in a single quarter. Besides, our instruments to the US market increased from the first quarter, largely reducing damage-rarch charges.
Other efforts in site-to-management, technology, advancement, and the process improvement also improved our profit ability. Net income was 180.1 million in the second quarter, up 65.6% of the sequential rate. Adjusted net income was 196.7 million, up 70.5% of the sequential rate. Diluted earnings per ordinary share were US dollars, 0.7% to 7, up 48.5% of the sequential rate.
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Due to the substantial release of polysilicon production volumes and excessive inventory, polysilicon prices declined sharply in the second quarter, which also caused a certain volatility in marginal prices.
Since most customers are sensitive to price, they were cautious and slowed down their orders, which to some extent affected our module demand. As the lower supply chain prices stabilized in the third quarter, domestic customers started to place orders, and major projects were initiated and started construction in China.
The lower prices also led to a surge in demand from some overseas markets. We expect production sales in the PV market to rebound in the second half.
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There are more and more players deploying Top Con production capacity. Anti-Top Con is certain to become the mainstream technology in the industry.
However, some of the new engines experienced a product delays and the story that expected the production and efficiency ramped up due to insufficient technical know-how and differences in technology and the process. Keep in competitive and type production in short slides.
At the end of the second quarter, the mass produced efficiency of our 182 N-type top count capacity had reached 25.5%. This N-type module power output of around 580 Wp, which is about 25 to 30 Wp more than the
We are confident we will continue to lead in efficiency and cost through technology iteration and process optimization.
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We are also excited to announce the construction of a major production base of 56 GW integrated wafers and module capacity in Shaanxi, which will become the largest n-type integrated production facility in the industry.
in the PV industry that will fully demonstrate our advantages in highly efficient technology and products, lower investment costs, and greater operational efficiency, as well as intelligent and smart manufacturing capabilities.
Meanwhile, we proactively responded to shifts in the global PV landscape by expanding our overseas industrial chain. The 1 gigawatt capacity expansion for N-type modules in the U.S. is expected to start production in September this year.
So far, we have established an industry leading overseas industrial chain network with integrated production capabilities from wafer to module, visibility and excellent product competitiveness.
As we continue to invest in n-type capacity expansion over SIF in the second half, we will reach an integrated capacity of over 12 gigawatts over SIF by the end of 2023, with n-type accounting for over 75%.
We will continuously strengthen and expand our global industrial chain to provide premium and high quality products and services to our global clients.
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As one of the largest and most innovative solar module manufacturers in the world, we have always carried on social responsibility and taken a continuous improvement of our ESG management.
as a key matter for our sustainable development. In the second quarter, we set up a goal and a roadmap to net zero emissions based on methods and requirements advised by the Science-Based Target Initiative, SBTI.
actively promoting our global carbon emissions reduction and addressing climate change with concrete actions. With outstanding performance in social responsibility fulfillment, we let the mainstream PV industry in the S&T Global Corporate Sustainability Assessment.
reliability. Meanwhile, we helped our cooperation with leading institutions and professionals in global renewable energy development and joined the International Renewable Energy Agency, IRENA.
Through sharing best practices and experience, we are dedicated to making a positive contribution to the sustainable advancement of renewable energy globally.
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In summary, we are confident in the development of the PV industry. We will continue to enhance our integrated operations and management. We are positive about the long-term prospects of PV plus energy storage model and will continue to grow our competitiveness by actively developing our energy storage business.
stabilize and risk our four-year module shipments to be in the range of 70 to 75 gigawatts, this anti-module accounting for approximately 60% of the total module shipments. As demand for anti-products continues to increase in the global market, we will move on to invest anti-capacity, which is competitive both in technology and cost. We expect our annual production capacity for mono wafers, solar cells and solar modules to reach 85, 90 and 110 gigawatts, respectively.
This was for the third quarter of 2023.
Thank you, Ms. Li. Total shipments in the second quarter were around 18.6 gigawatts, over 95 percent of which were module shipments. We are glad that total module shipment in the first half of 2023 exceeds 30 gigawatts, making us the number one in the PV industry for the first half module shipment. In terms of product mix, N-type Tiger Neo accounted for 58 percent of the module shipment in the second quarter, a steady increase from nearly 50 percent in the previous quarter, thanks to its high power output, quality, and reliability.
In terms of geographic mix, China and Europe remained the largest regions in the second quarter, accounting for over 50% together.
The proportions of other markets remain relatively stable.
benefiting from our dedicated efforts. As we continue to make effective progress, we expect our shipments to the U.S. market to gradually increase in the second half. For orders and prices, visibility of our order book has reached about 80% for the whole year of 2023, improving compared with the first quarter, with oversea orders making the majority. Build clients in raw material prices draw module price lower.
Recent prices for our new contracts have fluctuated within a reasonable range in line with market trends. And Tiger Neo retained a competitive premium over P-type.
With the gradual release of our untied capacity, we expect the Tiger New to accelerate its penetration into China, Europe and emerging markets in the second half.
It's a proportion of Tiger new shipment for the full year 2023 to reach around 60% of our total module shipments and its product strength to continue to lead the industry.
Recently, we were awarded the Top Brand PV Europe CO23 by EOPD Research.
This recognition by our downstream partners does not only prove that Jinko Solar is one of the preferred European brands for installers to work with, but also reflects our strong reputation and commitment to our customers as a leading supplier and the entire Topcon technology leader. For more Hilary
In summary, we are happy to navigate through volatility in supply chain prices and end demand in second quarter, leveraging our advantage in terms of global marketing network, industrial chain layout, and product competitiveness. Meanwhile, we continue to improve our mechanism to cope with risks and enhance our customer relations and marketing network.
As supply chain prices stabilized recently, we are optimistic about the return of demand in the global market for the second half.
In the medium and the long term, as the economy of solar power becomes more and more prominent, the PV market will move forward at a healthy and sustainable growth pace.
We expect China, the US, Europe and other developed markets to grow at a steady pace and emerging markets to continuously expand in size.
We are confident we will provide more economic value to our customers with excellent products and services.
and continue to grow our market share. With that, I will turn the call to Pat.
Thank you, Jenner. We are pleased to report strong financial results in the second quarter.
with quarterly total revenues, gross profit, income from operations, and net income all reaching historical new high.
Recently, our majority on the principal operating subsidiary, Ingo Solar Company Limited, announced its intention to issue ordinary shares for no more than RMB 9.7.
to fund the construction of our anti-integrated production facility in Shanxi.
This expansion of an advanced integrity product Derek
capacity will help us to continuously improve our cost structure and increasing equity capital will also help us improve our capital structure.
as we keep enhancing our global industrial chain, marketing network and product competitiveness.
We hope to achieve healthy and sustainable profitability.
Let me go into more details now.
Total revenue was over $2,000.
4.2 billing.
up 32% sequentially and up 63% year over year.
Of course, marking.
was 15.6% compared to 14.7% in the second quarter last year.
We continue to make good progress in clearing customs in the US market.
significantly reducing the marriage targets compared with the first quarter of this year.
total operating expenses accounting for
11% of total revenues compared with 12% in the first quarter this year and 16% in the second quarter last year.
improving sequentially and year over year.
Income from operations.
was 212 million compared with income from operations.
of $576 million in the first quarter this year and lost from operations.
how 43 million in second quarter last year
improving sequentially and year over year.
while breaking the margin.
was about five percentage.
Let's compare with the first quarter.
this year and love Martin
a 1.5 percentage in second quarter last year, also improving year over year.
Net income attribute to Jinko Solar Holdings' ordinary shareholders.
was about 180 milli.
up 66% sequentially and compared to a net loss attribute to the
Jinko Solo Holdings' ordinary shareholders of about 93 million improving year over year.
excluding the impact from a change in fair value of notes, a change in fair value of long-term investments and share-based compensation expenses.
Adjusting the income attribute to the ordinary shareholders was about 197 million.
and up to 0.9 times year over year.
I the earnings per share.
was 77 cents in the second quarter.
up about 49% sequentially and compared to diluting loss per share
of 4.07 in the second quarter last year.
improving year over year.
Moving to the balance sheet.
At the end of the second quarter, our cash and cash equivalents
or about
Two point.
The refined billing is from 1.48 billing at the end of the first quarter this year, improving sequentially.
accounts were civil to no avail.
for 79 days compared with 95 days in the first quarter.
role. where they increased to
17 days in the second quarter from 100 days in the first quarter.
from 100 days in the first quarter. Total debt.
was 4.7 filling at the end of the second quarter compared to
4.4 billion at the end of the first quarter.
Net debt was 2.4 billion compared to 2.9 billion at the end of the first quarter this year.
This concludes our prepared remarks. We are now happy to take your questions. Operator, please proceed.
Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.
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If you are on a speakerphone, please pick up the handset to ask your question.
The first question today comes from Brian Lee with Goldman Sachs. Please go ahead.
Hi, thanks for taking the questions. This is Grace on for Brian . I guess first question around ASP trajectory. Obviously, the Alisa cons had a big decline in two queue, though we had stabilized in recent week. At the same time, like we're hearing some oversupplied in certain areas of the market. So Right.
Just wondering if you can talk about the ASP and maybe the margin trajectory moving through the rest of the year and maybe into 2024. Thank you.
Hey, this is Charlie speaking and...
Firstly, I want to talk about this year. It's a very big market and a lot of markets are very strong, including China, United States and European markets.
And we delivered a very strong performance for the first half year. And in terms of the revenue shipments.
the next generation and have top count we are leading the industries
and take about 50% of our portfolio from N-type. And we believe we are committed to the momentum throughout the year. And N-type, because of the cutting edge and its operation,
strong, great functions for the end customers and have advanced more power output for the end customer. And we are seeing the market is accepting the end-type, is going to dominate the market.
and will continue the supply, relatively short, even throughout next year.
So back to questions and ASP at the...
The first half is pretty relatively stable and starting from June this year because of the polysilicon relatively oversupplied situations and make the solar modules have the relative adjustments.
If you're looking for the mid-term perspective, I think it's very good for the downstream and the accelerated demand from different markets. And it will also generate solar and storage in the big markets in the future.
And for the SB train, it's relatively in line with the industry. The second half year, it's for sure downward train. It has been stabilized. And we believe thanks to the very, very strong China installations.
particularly in Q4 this year, the ASP will make 10 and maybe possible relatively in upward trend.
For the proper margins, we strongly believe and we almost closed out the sales order this year. And over 80% is in the box.
And so we are planning actually for the next year. And for this year, we believe the momentum will continue and year over year. It's a very good year for JNCO, in terms of the probability, even the second half year. And,
The end-type will take more shipments for Jinko in the second half year, 60% to 65%, which is 50% in the first half year. On top of that, the US market is very positive for us, starting from the circular.
our modules were detained starting from last year.
and we have done a lot of work with the ESGs and communications with elements.
address regulators. And starting from July , our modules and the speed of the, let's say, going through the conference has been speed up and we are expecting, you know.
our shipments the US market will be accelerated starting this quarter and we have also get ready for the overseas capacities 12 gigawatt-s.
integrated starting from wafer to modules and to For the US market next year. So next year will be a very big, you know mark year for for for JNCO to to have more markets here in the US and as well as we have
We have been in expansion for the U.S. module capacities. One gigawatt is in place and we plan to start operations from the end of the third quarter. So that's back to your questions.
Thanks, Charlie.
Thanks, Charlie. That's super – Maybe I missed it. Can you provide us your updated CapEx number for 23? And then also, you talked about, like, 12 gigawatts for overseas capacity next year. So just wondering if you can provide us the CapEx number and how you think about funding it.
how you think about the capital raise here. Thank you.
Yes, yeah.
Yes, yes.
For the capex this year it's roughly 15 billion RMB and
We estimate, you know, first half year we have generated around, you know, roughly 50, let's say, 55 billion, 5.5 billion RMB, you know, operating cash flows. And this year we estimate over additional cash needs.
next year for the 12 gigawatts integrated capacities.
for the 12 gigawatts integrated capacities. Thank you. I will take the rest offline.
Thank you. The next question comes from Philip Chan with Roth MKM. Please go ahead.
Hey guys, this is Matt on Fulfill. Thanks for taking the questions. Looking at the US market, there is this expectation in the industry that modules made with China Poly that was not from Xinjiang could get into the US, but we haven't really been seeing that yet. Do you know what might be taking so long?
when non-Qingjiang China poly models made in Southeast Asia might get cleared by CBP.
Yeah, it's uhhh
For Tinko, we focus on 100% polysilicon out of China.
to serve the US markets.
And just like I said, we are worried pretty smooth and the speed up the passes starting from the short quarter. And for the China based party.
And the probabilities of the, you know, we're not sure, but, you know, it's possible, impossible, but from a, from a clinical perspective, we will continue. We have had long-term contract with, you know, the, the...
tier one and the poly makers out of China and we will continue to increase the You know the out in the source and the volume from the poly producers and the poly out of China
The volume is roughly 10,000 metric tiles.
which we believe is sufficient to supply the US market as tier one companies.
we can take advantage and we have the largest.
integrated capacity 12 gigawatts including
including 75% top car, the end type. So I think we can take the lead in terms of the market share, as well as the quality sourcing from the suppliers out of China.
Do you think it's possible that non-China poly not made in Xinjiang ever makes it into the US? I'm just kind of curious on your view.
I'm not in a position to make the predictions or the judgment, but...
from the legal perspective, the truth about it is...
And if you can do, you know, from the implementation perspective from the relevant regulators, I'm not sure of their positions.
Okay, thank you for the color. I'll pass it along.
Okay, thank you for the color. I'll pass it along. Thank you.
Once again, if you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. The next question comes from Rajiv Chantry with TranSiro Capital. Please go ahead. Please press star and one on your telephone and wait for your name to be announced.
Good morning and good evening. And first of all, congratulations on a superb quarter and for the very strong guidance. One question that has not been asked yet is about the inventory reserve that you have taken in the quarter. Really your inventories tend to go up every quarter because you are growing the...
million quarter to quarter. And so my first question is, is it reasonable to think that the inventory reserve that you took was actually in the neighborhood of $400 million, which would make sense given the sharp decline in the prices of poly. And obviously at any point in time, you have a lot of quality in your working process.
So the first question is, is the inventory reserve in the ballpark of $350 or $400 million and that your gross margin without this inventory reserve would actually be in the mid-20s in the second quarter? Forestry No. 3 N toast
Yes, actually, we made some inventory reserve in the second quarter. I think
This has also impacted our
This has also impacted our...
This is only a temporary treatment of the inventory. We don't think it will be a long-term treatment to our inventory.
I understand that, obviously it's a one-time thing. The question is, was it in the ballpark of $400 million?
and that if the reserve was not taking your true earnings, it would be $400 million higher.
I mean, 400 million is one number. We provided roughly 500 million RMB inventory per region.
But the second quarter, I think we did pretty good. And we anticipated, let's say, the poly decline starting from June . So we speed up the inventory goods delivery and control the inventory very tight.
That is why you are saying our total inventory, the numbers is relatively lower, quarter over quarter. But we still have some kind of orders targeting the residential markets.
The initial market is kind of to see customers and they are typically when the supply chain in particular the end price has a significant adjustment which we...
Typically we will offer some price discounts to the initial customers. That is why from the accounting perspective by the end of the second quarter we recorded additional inventory one time in the provisions.
And we don't believe, you know, that is the current items in the future.
Charlie, I understand it is not an ongoing thing. My question simply is reflecting what was the true earning power of the company in the second quarter. And what I'm trying to get at is that if the poly, if you exclude
the impact that the sharp decline in poly prices has had on the inventory reserve, that your earnings would have been a lot higher, not just somewhat higher, but a lot higher, maybe as much as $400 million higher.
Well, you mean if let's say the polypies are relatively stabilized, the module price is
It's very stable. And for sure, if that is the case, we are able to generate more earnings significantly.
So is it fair to say that without this inventory reserve, the gross margin could have been in the mid-20s, 24%, 25%?
Well, I think it is roughly, I think...
Without that, it's roughly up to 20%. And you expect it to be higher in the third quarter because the rate at which the price of modules is coming down.
It's slower than the rate at which the poly price is coming down. Yeah, we expect, you know, strong, continuous, strong earnings and because of the, you know, the M-type module, they have strong earning generation power.
we get more percentage shipments and second wise we have higher shipments in the US markets and So that is a combination of the two key factors and of course the party is done to be you know by stabilized and module you know is still
it's reaching kind of the stabilized point.
Also, my next question is about the storage business. Did the storage business contribute any revenues in the second quarter? And what should we expect for the full year?
Yeah, storage is from a long-term perspective, it's diverse.
Just from a long-term perspective, what our end of…
We expect it's not going to be a very big Very important business unit from the long term three to five years, but this year's a kind of investment year waiting dress on the team sales channels and And R&D, you know, even we still invest some small capacities
expecting you this year become an investment, yeah, we will make some kind of, you know.
small losses for the business but for the future looking to the next year it's going to be a perfect you know let's say you know
high growth segment for Jinko.
So will you hit a few hundred million dollars this year or not really?
Not this year, no, not this year.
Not this year, no not this year. I think, you know.
Maybe I think, probably we don't discuss the numbers, but again, it's a kind of the early investment segment, the big business unit. But we have roughly reach our work, sizable teams, including the key functions.
And by the end of the fourth quarter, and we are – we think we are in a good position and for next year due to penetrate storage markets.
Also, going back to the cost of polysilicon, is it fair to think that the average cost of the polysilicon in the second quarter was roughly 3 cents lower than the average cost
than the cost of polysilicon that you had in the first quarter? So, sorry, could you repeat your question?
My question is on the cost of polysilicon. And I'm talking not about the cost of polysilicon in the market, but the cost of polysilicon that you embedded in your earnings, in your operations and therefore your earnings. Is it fair to think that the cost of polysilicon in the second quarter was...
roughly, excluding the inventory reserve, was roughly three cents lower than the first quarter cost of polysilicin.
I did have the numbers, I know your questions and the Q1, I think the party
starting to generate a kind of very big rebound and started it down month over month and significantly declined starting from June . Starting June , it's a small impact on the Q2.
We can get back to you after the call, but I think it's slightly lower, the party, from the financial statements perspective.
Thank you.
And also, one last question. Is it fair to say that at this point in the third quarter, your average cost, your total cost per watt is under $0.15? you
We don't disclose the numbers. It's a kind of competitive advantage and that's the informations. But it's a significant improvement back to your questions in third quarter starting from July . I storyboarded it, it's really critical that we put up our France IP screen and we put up the
as well as we continue to improve our internal operations with the supply.
So it's a significant improvement, but we don't disclose the cost structure, even the cost structure.
including a total, you know, crashing cost.
And a final question, Charlie. First, Polar has made a point of noting that they have a lot of long-term contracts going out multiple years, going out two, three, four years, and Maxion has said the same thing. And these contracts are – Yeah, so –
for prices in the high 20s, high 20s going out multiple years. Do you think that that kind of pricing that far out is really sustainable given what is actually happening to prices in the market right now?
I think US market generally is a very big market, sustainable long growth.
There are a lot of disruptions from the recent two years because of the, let's say, the WRO, UFLPA, so it makes the supply tight. So some of the, let's say the local, because of disruptions, but we have overcome.
the disruptions. So for the long term we think we are in good positions with our peers.
Final question. Will you be able to take advantage of the IRA in terms of the production that you are starting with the 1 gigawatt N-type product in the US?
Thank you.
I mean, you know, Jinko is the...
Let's say applicable or not. We think it's a IRA is kind of very transparent in your policies and it's for the local productions in the US. And when we do that, we don't let's say depend on why it is not IRA. We think that...
relatively size local productions and local content makes JNCODE more competitive in the market. We strongly believe that is a
we are qualified to take the IRA.
Okay, so you expect that you will be able to benefit from it, but you're not counting on it.
Yeah, we don't account as a way we do work conservative accounting. I know some peers.
The US producers do a cool basis even the recorded on the cost of goods So, you know, that's a different, you know, kind of perspective But we didn't do that, we wanted to do it on cash basis, you know, based on the...
that the casing and the sound of the higher in the future. Okay, thank you and congratulations again.
and the founder of the higher ed in the future. Okay, thank you and congratulations again. Thank you, thank you.
As a reminder, if you wish to ask a question, please press star then 1 to enter the question queue.
Once again, if you have a question, please press star and 1 on your telephone and wait for your name to be announced.
The next question comes from Alan Miles with Jeffrey. Please go ahead.
Thanks for taking my question and congratulations for the great results. So a couple of questions to follow up. So first of all, I would like to clarify, so the amount, because in Asia reporting the overall impairment in two kilowatts around 1.3 milliamp RMB.
So in US reporting, around 500 million is recorded in cost of revenue, and the remaining is under the impairment of long life assets. So is this understanding correct?
Yeah, you're right, there are different presentations in different accounting standards. In the US, inventory provision is typically an item of cost of goods sold. But in China, the PRC standards have separate lines, called assets and products, including everything.
the effects assets and the as well as the new injuries. So that's kind of the presentation different.
accounting standards. Thank you. So if we add back 500 million of inventory impact to the cross margin in Q2, we actually improve and compare the Q1, right?
Yes, yes, you're right.
Yeah, and then another thing is the impairment of long life assets to minus sending those equipment which we can also expect it is a one-off thing, right? Because
the equipment won't happen at the quarter. It's a one-off and we provide it for the small size and the small size modules to our capacity.
the equipment won't happen every quarter. It's a one-off and we provide for the small size and small size modules to our capacity. And you know, we...
to make our assets to be more competitive on the balance sheet. Thank you. And then another question is in relation to the port charges, because I recall that in 4Q rush in the first quarter this year, there were port charges affecting the margin.
For the post-charges and the –
In the first quarter we have 400 million in R&D, poor charges.
for the US because it's a detailed modules and very high, you know, storage costs. And the second quarter, and the input amount to 200 million RMB, one quarter. And starting from the third quarter, we believe that...
on the US, you know, the custom site.
Thanks a lot. This is an exciting development action. So it leads to the next question as to how much US shipment has been sold to the US in the first and second quarter.
So for this year, after we raise our guidance to 70 to 75 gigawatt, 5 to 10 percent is around like 4 to 7 gigawatt. So next year, our target is 12 gigawatt. Is it correct? It's roughly simple to mark, it's assumed next year, and it could be in your range, let's say, enough.
the base case. Thank you. So that's actually quite a strong improvement from this year, like four to seven gigawatt to 10 gigawatt still. So would like to know what is your expectation on US installation next year on this basis? This year probably US, I don't think the base case is 30 degrees 200 gig of beasts that they stripes because they're not ain't the same. So I would say more than to just thoughts and there's certainly an understanding of the typicalips issues
So, I think the company is implying market share gain is actually right? Yeah, it's kind of go back to normal strategy, right? So, in the last two years time, we have got, let's say we got started by different regions, different regions. And now we have seen positively.
from JNCODE to US market. That's why we expect around 10% of our total shipment goes to US market next year. So what's your expectation on US installation in 2020 for them?
Well, it depends. We see a robust demand there. So it's really a question of whether the supply will be normal or it will be strictly under the US LPA inspection.
That will decide what could be the size of a US market. It could be somewhere from 30 gigawatt to even up to 50 gigawatt. It really depends on the supply side.
Thank you. Thank you. So my last question is basically the, for the polysilicon supply correspondingly, because 12 gigawatt approximately, you still need quite a lot of polysilicon, probably around 20 or 30,000 times. So have we logged in that supply already?
The majority of the power we have is lost. The overstate capacity is 100,000.
I'm sorry Since all the metric times, right? 100...100...
thousand metric tons which can support let's say you know I think around 50 gigawatts and we take 20% market share from the let's say this party supply side we are
times which can support let's say you know I think around 150 gigawatts and we take 20 percent monthly share from the let's say the policy supply side we are confident and
As well as some of the overseas capacity, we still have some flexibility to increase the capacity. So we're thinking we can achieve that. Thanks a lot. So I've got a final question on Asia placement. So will that eventually lead to collusion of the US share?
U.S. shareholding? Yes, yes, if you know It's probably maybe seven percent to nine percent dilutions It's not significant and the way we take yeah, the u.s. You know has 58 percent you know the shareholding of the Asia and if
Yes, yes, it's probably maybe 7% to 9% dilutions. It's not significant and the way we take the US has 58% shareholding of the Asia. From say like 100 death, about 10 and a half thousand people are all in the United States have had the case.
Let us assume 10% of the maximum maybe should be lower. It's not like 53, right? 5%, you know, the difference, the lower.
The touch from 10%, the maximum maybe should be lower. It's not like 53, right? 5%, the difference, the lower. Thank you and good night.
So, thanks a lot for taking my question and congratulations again for the great results. Thank you. Thank you. This does conclude our question and answer session and our conference for today. Thank you for participating. You may now disconnect.