Q1 2025 JinkoSolar Holding Co Ltd Earnings Call
All participants are in listen only mode.
After managements prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded I would now like to turn the meeting over to your host for today's call Stella Wang <unk> Investor Relations. Please proceed Stella.
Speaker Change: Thank you operator, thank you everyone for joining us today for the wholesalers.
Right.
Speaker Change: Earnings Conference call. The company's results were released earlier today and available on the company's IR website at www dot equals older Dot com as well as newswire services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website.
Speaker Change: On our call today, promising coastal or I misunderstand, the chairman and CEO. A few courses are holding company limited Mr agenda, Yeah, Sam all of equal equal Solar Company limited Mr. Patten CFO I was imposed on our holding company limited and then Easter Chinese CFO of zinc also in our company.
Speaker Change: He said he will discuss the home solar business operations and the company highlights followed by Mr. Neil will talk about the sales and marketing and then Mr. Peng who will go through the financials they won't be at the level to answer your questions. During the Q&A session that follows.
Speaker Change: Note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S.
Speaker Change: Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such our future results may be materially different from the views whereas to debate.
Speaker Change: Information regarding this and other risks is included you think also there's public filings with the Securities and Exchange Commission.
Speaker Change: [noise] alert does not assume any obligation to update any forward looking statements, except as required under the applicable law. It's now my pleasure to introduce <unk>, chairman and CEO of simple Sunoco deep. He said he will speak in Mandarin and I will translate his comments into English. Please go ahead with it.
Speaker Change: Digital so again, so one Alex Kinsey.
Speaker Change: So little ways.
Speaker Change: Emerging digital galvan.
Speaker Change: Sounds good thank you.
Speaker Change: Yes.
Speaker Change: So.
Speaker Change: Sure sure.
Speaker Change: Yeah, if you.
Speaker Change: Once you do those things and yeah. That's.
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Speaker Change: So it's not so much.
Speaker Change: Or might you just cannot take hopefully that's helpful. In terms of what Boeing sometimes G. G suite, while intelligently jumped December we make most of them to work on the shelf.
Speaker Change: I think that so I suggest you do so against all without the need of.
Speaker Change: Well I'm, beating jockey, which inquiries from what you didn't buy more.
Speaker Change: Listen that's reached a 17 five gigawatt, but revenue of U S dollars, one point to 91 billion for the first quarter of 2025 practice of Balsam that solar industrial chain were low in the first quarter. This combined with this disruption in demand caused by changes.
Speaker Change: <unk> International trade policies pressured profit margin each segment of the integrated with alerts by chance. Besides this challenging market environment, we fulfill our delivery commitments to our customers and reduce our cost through supply chain optimization adjustments in production and operation plan and.
Speaker Change: Other measures.
Speaker Change: Oh year over year decline in shipments to the U S market and a continued decline in higher priced over disorders, our motto practice and profitability decreased both year over year and essentially in the first quarter net loss was approximately U S dollars $180 million for.
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Speaker Change: The first quarter.
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Speaker Change: Hello, ladies and gentlemen, and thank you for standing by for Genco Solar holding co Ltd first quarter 2025 earnings conference call.
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At this time, all participants are in listen only mode.
Speaker Change: Management's prepared remarks, there will be a question answer session. As a reminder, today's conference call is being recorded.
Speaker Change: Yeah. So.
Speaker Change: So total cargo amounting courtyard doughnuts for what I'm sure, you're going out and being a critical path for them. Each of those who don't know she was up can you give me a sense how pumped out of Colorado pushing me almost there's also the moundsville come with their own cultural could cause hugging the spiritual well.
Speaker Change: Now I'd like to turn the meeting over to your host for today's call Stella Wang Genco salaries Investor Relations. Please proceed sir.
Speaker Change: Thank you operator, thank you otherwise bolt on yesterday about equal so there's just one or two anybody five earnings conference call. The company's results were released earlier today and available on the company's IR website at Www dot people sort of dot com as well as on the Smiles Division. We have also provided a separate.
Speaker Change: Well talk to you a lot of pulses boss with gene that customers are using more channel women's I think occidental.
Speaker Change: That's useful.
Speaker Change: That's all they talk about.
Speaker Change: According to data from the new.
Speaker Change: New installations in China in the first half corner amounted to 59, seven Gigawatts, an increase of 31% year over year resilience, where things in domestic demand despite of the higher comparison basis in 2024.
Speaker Change: And then for presentation for today's earnings call, which can also be found on the IR website.
Speaker Change: On our call today, promising home Solar City Center.
Mr. Patten: M. A C O R. P equals the novelty of the limited he said agenda, yeah, Sam all else equal equal Solar company limited Mr. Patten CFO equals all are holding company limited and the Mr. Charlie talk Gaffle of equal So that company limited. He said he want disgusting home solar business operations and the company highlights followed by.
Speaker Change: It is self regulation and of high quality developments and initiatives by manufacturers were gradually effective from January to March average monthly billing practice for solar module steadily recovered in the domestic market and the bidding prices returned to a more rational level recently and the Polish economy kind of.
Speaker Change: Mr. Miao, who will talk about the south and the marketing and then Mr. Penn where they'll go through the financials. They won't be at the level to answer your question. Stephen you already know Q&A session that follows.
Speaker Change: All deadlines for distributed solar regulation and a market based on renewable price in April on April 30, and May 31st approach market sentiment has cooled down to some extent and distributed module prices have fallen back from their previous highs at the same time changes.
Speaker Change: Please note that today's discussion will contain forward looking statements made under the safe Harbor provisions.
Speaker Change: Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such our future results may be materially different from the views, whereas today or that information regarding this and other risks is equal with its E equals <unk>.
Speaker Change: International trade policies.
Speaker Change: Mr called terrorists in the United States have continued to bring certain disruptions to the PV industry.
Speaker Change: The response to these challenges we have flexibility adjusted our supply chain strategy and the rationale shimon snakes, while maintaining close communication and the negotiation of our customers.
Speaker Change: I believe Sally's U S Securities and Exchange Commission.
Speaker Change: Cause alert does not assume any obligation to update any forward looking statement, except as required under the applicable law. It's now my pleasure to introduce a new set of kimco share mountainous a simple philosophy. He said he will speak in Mandarin and I will translate his comments into English. Please go ahead.
Speaker Change: Our extensive marketing insights and efficient execution, we remain committed to meeting customer demand for our high efficient and reliable products maintain your operations.
Speaker Change: Continuity, while adapting to market dynamics currently visibility of our order book stands at six 8% to 70% this into Pacific and the Middle East and Africa.
Speaker Change: Is it goes against the one Alex Kinsey.
Speaker Change: So little weight gain.
Carla: Thank you Carla.
Speaker Change: Exceeding 80%.
Thank you D was denied.
Speaker Change: Tell me as I'm sure you're also going to hire them.
Carla: And on schedule.
Speaker Change: I'm not looking for any toned down coastal California, I mean, the structure. It's a question that comes up.
Carla: Yeah, if you want to.
Carla: One kid using sequencing yeah.
Carla: So it's not so much I don't know if you want that well my he's always seem that a couple of jobs in combo pointing out youll see.
Speaker Change: Cable channel against them, but how are you.
Speaker Change: You talked about sometimes with it will come down and that's essentially it cuts off on it.
Jim: Jim do you want to tell them.
Speaker Change: Ships put on that she adaptable call them against Michelle retirement, only September none that tight so damn well mazzoli filling a cultural against the top of her gagan.
Jim: My question is I'm sure only sharper and I called out the non so she can introduce again without the R&D.
Bonnie: Hi, Bonnie.
Jim: Got it.
You're talking about she has had.
Jim: Based on what you can buy your gene modulation. That's reached the 17th one five gigawatt bid round and you saw the U S dollars 191 billion for the first quarter.
Speaker Change: Huntington don't also don't trap.
Speaker Change: The reduction of increasing efficiency and remain a mainstay and seen it develop.
Speaker Change: Then after heavy industry and the passengers demand for high power products is growing rapidly. We further reduced I'll say only due to the limitations in the upgrading and a transformation of almost a convention on popcorn.
Jim: Plenty plenty five tranches of Ballston or solar industrial Chi, we'll know in the first quarter.
This combined with this disruption in demand caused by changes he is.
Speaker Change: You know industry differences between manufacturers and top class cell efficiency Paradoctor performance and of course, a gradually widening we believe that's pumping answer with a high efficiency cell capacity and high power products will have a competitive advantage in the market.
Jim: National policies pressured profit margins if government. Some don't you think like solar by chance.
Jim: This challenging market environment, we fulfill our delivery commitments to our customers and reduce the cost to supply chain optimization adjustments in production and operation plan and other measures do you have oh year over year decline in Eastern Australia.
Speaker Change: Yes.
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Speaker Change: Saudi Togo for them and for us.
Speaker Change: Amongst the assured teaching fishing you to become timing, but since you guys are talking about a little farm capstone class ultra something changed or is it.
Jim: <unk> market and a continued decline in higher price over just fathers, our motto crashes and profitability decreased both year over year and this includes all late in the first quarter net loss was approximately U S dollars 180 million for the first quarter.
Speaker Change: So on that topic, and so hungry a couple of comments I mean, the only thing.
Speaker Change: You also asked all sorts of other things yet.
Speaker Change: The woman that problem. So should pop kids eat you don't want to type of compensation with a guy that club kids against this yes, the Saudi THAAD, though.
Jim: Sure.
Speaker Change: Yeah, Doug Conyers punishing them fungible, so Julien sure Hamzah.
Speaker Change: Oh, that's it's watching too.
Jim: Kathy.
Speaker Change: By the end of the first quarter. The mass produce this I always think that states will ever third generation popcorn product stated 26, 4% to 6% we continued to upgrade because they see top comm capacity.
Jim: When they accomplish neutral.
Jim: Shinhan card's useful opinion, then she said it didn't ship until a charge you see in a call center potash in North Virginia, Yes, Joe.
Speaker Change: The introduction of technology, such as the Hot sale, Pennsylvania next and that's why the basketball, we step to the power of our third generation popcorn products to have.
Jim: One example to again to change out one book with them.
Jim: Sure.
Danny: <unk> said that both of US attendance, Danny says, how Hudson's that sounds fine.
Speaker Change: 22 study, what's the advantage advantage competitive previous generation telecom products in the industry. Meanwhile, recapped, making breakthroughs in either arm.
Jim: So I'm not sure that's what yeah well of course.
Speaker Change: Yeah, exactly John Chen XI called you yourself or you know is it also quoting and policy enforcement.
Jim: Once you finish because I feel it was supposed to be a powerful I get that I think.
Speaker Change: By the end of the first quarter, our laboratory efficiency fault perovskite tandem solar cell based on top talent reached 34, 1% to 22% once again setting a new record.
Dave: Yeah, Dave.
Jim: So it's all about how that where money, although not so Paulo shameful cleanup sodium.
Jim: Being a cohort so that means you know codelco shares all yeah. I mean, that's the tough part about that's all kind of pushing me well Mexico. They don't really do almost also cause havoc in the future.
Speaker Change: I mean, that's one of them either yeah, bobs with Oh, So food and then the.
Speaker Change: The total yet so it doesn't.
Michelle Cheng: Michelle Cheng age at which ones you don't.
Jim: So some people out of Tulsa, Boston gene that causes an issue well channel them and I think that's again those that I haven't really thought geez.
Michelle Cheng: So call it 12 or something like that so awesome Shambled Treenail Concho Donaldson.
Jonathan: Hey, Jonathan.
Michelle Cheng: Oh, no she wants or what else that they will go to obsolete.
Jim: On page 12 of the box.
Jonathan: According to data from the new.
Michelle Cheng: A lot of time with Johnson a woman that's telling me is launching his ammonia so unless you thought that that smoking bans hubbell.
Jonathan: You'll need foundation in China in the first of four amounted to 50 917 Gigawatts.
Michelle Cheng: Bob Evans at all so that it was being way eleven's off stuff off the shelf holds true.
Jonathan: Chris of 31% year over year resilience, we're seeing E domestic demand despite of the higher comparison, they see plenty plenty for match it yourself regulations and of high quality developments and initiatives by manufacturers were gradually effective from January to March average them alternate bidding process false alarm.
Speaker Change: Jenny you talk also about offering either a long pole uniform adjusted your tons were punctuated by the challenging you want so we tried to cope with Tivo golf shops in them.
Michelle Cheng: Hum.
Michelle Cheng: Change with any other coastal strip out the culture of Needham.
Michelle Cheng: Let's now see R&D manufacturing and offer self service capability in energy storage and a graduate actually results in the first quarter shipments of AMR, Yes, that's extended 300 megawatt hours, a large increase compared to the same here. The last year, we expect already asked us to be.
Jonathan: Module steadily recovered in the domestic market and the bidding prices return to more rational enough level, originally and the Polish economy kind of deadlines for distributed solar regulations and the market basically renewable price reform on April 30, and May 31st approach market sentiment.
Michelle Cheng: Shipments of and yes, it has to be around six gigawatt gigawatts averaged for the full year 2025.
Jonathan: It has cooled down to some extent and is distributed module prices have fallen back from their previous highs at the same time changes E National trade policy is.
Michelle Cheng: These markets as our strategic priorities, so far confirmed orders for energy storage systems accounted for 50% to 60% with another 20% to 30% showing strong potential for.
Jonathan: It's actually out that was typical called terrorists in the United States have continued bringing certain disruptions to the PV industry.
Response to these challenges we have black slowly adjusted our supply chain strategy and the rationale Shimon snakes, Wilmington in close communication and negotiation with other customers.
Michelle Cheng: Leveraging our leading position in the industry, we bought from actively explore the innovative business models, that's integrated solar and storage solutions, providing a high efficiency and smart clean energy solutions to global clients and contributing to the sustainable development of the global energy.
Jonathan: Relying on our extensive marketing insights and efficient execution, we remain committed to meeting customer demand for our high efficient and reliable product that's in your operations.
Michelle Cheng: Part of the job that you are not sustainable I just I'm sure you just see you Johnny.
Jonathan: Continuity, while adapting to market dynamics currently visibility order book stands at 60%, 70% Mis Indo Pacific and the Middle East and Africa Exane.
Michelle Cheng: I don't think we've yet also against the hustle agenda.
Michelle Cheng: He asked what do you what Joe said, we're going to do you bet on schedule.
Michelle Cheng: It will come across all these talking to John about food, we're going to do ourselves.
Jonathan: Exceeding 80%.
Michelle Cheng: Oh no one yeah, yeah. She can go down to what does that all sort of throughout the call. But did you also there are they all of them yet in Kenya to against the wall yet.
Jonathan: Tom is Sunshine also gone long here that Joe Shan.
Jonathan: Fannie on Banco de Kalb, only I mean, the shows that question since he's.
Jonathan: We achieved those challenges against them, but how are you.
Michelle Cheng: Awesome.
Jim: So Jim Oh My gosh.
Jonathan: You talked about sometimes with all come down and that's essentially it guys I'll call them yet.
Jim: Yes, sure Joe Hudson, a buildup so sure your hot food Hot City I would point out for anything for that piece of it which is what we're talking about things I mean, no leap off so you can't do it.
Jonathan: Yes, [laughter] put on this year that will come against the Xiaomi Mi only 10, but none that tight so damn well mazzoli filling your car truck into the tunnel, California hunting that she has had.
Jim: The parts and Yogurts, which are now I would like to go over our guidance for the second quarter and I saw in your 2025, we stopped Albert in your production capacity for mono wafers for myself and solar modules to reach 120, 95, and 130 gigawatt, respectively. This annual production capacity.
Jonathan: Huntington don't also don't yet.
Jonathan: It's a reduction of 90 crazy efficiency remain a mainstay in the development of the PV industry and Petsmart demand for high power products is growing rapidly to further reduce as they only do you have the mutations seen in upgrading and the transformation of almost a convention on Hong Kong.
Jim: Our third generation Telecom module to reach 14, Gigawatts to 15 Gigawatts by the end of 2025, we expect module shipments to be between 20 to 25 Gigawatts in the second quarter of 2025 and between 85 to 100 Gigawatts for the full year 2000.
Jonathan: Any differences between manufacturers and top off cell efficiency third Arctic for farmers and it costs a gradually why didn't we believe that's pump NASA with high efficiency cell capacity and high power play basketball has a competitive advantage in the market.
Jim: 25, and we will actively respond to changes in market demand and the policy continuously optimized market strategy and supply chain management and the consistency of the improved technology and product competitiveness to maintain a leading position in the industry.
Jonathan: So if you're doing more hum Sundance hunting in.
Jonathan: Saudi Togo from an absolute amongst.
Jonathan: Amongst us your teaching fishing, you talk hometown and Beth and she got.
Jonathan: Oh Boy, a little farm, Ken also something tasteful.
Sundance pumping Sharon Joe on your tongue.
Jim: Okay.
Jonathan: That's the only sale of thoughts all sorts of lots of things can also woman's egg in Padang Associate football Kids eat you know more skewed to become Skus with a guy that fun kids, Kansas, Yes, Saudi THAAD all assets.
Lee: Thank you Ms Lee.
Lee: First quarter total shipments were $19, one gigawatt with module shipment to accounting for approximately 90%.
Lee: Although demand was impacted by the off season, we sustained as the industry's highest shipment levels by leveraging our global sales network.
Jonathan: Oh, that's just starting to launch by the end of the first quarter. The mass produced $1.66 will ever third generation popcorn products. If they did 26, 1% to 6% we continued to upgrade the existing upcoming capacity. There's a introduction of technologies such as the Huntsville preservation Nextgen that's why.
Lee: The strength of our products shipped.
Lee: Troopers to overseas markets accounted for around 70%.
Lee: We have proactively embraced the surge in the mountains of Indo Pacific and the North Asia market.
Jonathan: The basketball, which that's the power of our third generation popcorn products to have a 22 study what's the atlassian advantage competitive previous generation of comp hurt us in the industry. Meanwhile, we kept them, making breakthroughs in our R&D by the end of the first quarter our laboratory efficiency.
Lee: Shippers to Indo Pacific market grew by nearly 10% year over year in the 150% sequentially, while shipments to North Asia increased by nearly 20% of yield for you.
Lee: U S shipment accounting for approximately 5% in line with our guidance.
Lee: On the prototype customer demand for our third generation of high powered com.
Jonathan: Paul or outsized tandem solar cell based on her part reached a 34, 1% to 22% once again setting a new level.
<unk> continue to growth our third generation high powered top count is expected to have a mantra output over 650 Watt peak.
Jonathan: I mean, that's one of them either yeah, Bob since Oh, so for that month.
Jonathan: Totally yeah, so judge.
Lee: With maximum.
Jonathan: Each of those for lunch at home.
Lee: 671.
Jonathan: So called out how well sandbox, that's awesome Shambled Tunyaz won't see you often.
Lee: Thanks to lower degradation lower temperature coefficient higher bifacial attitude and enhance the reliability.
Speaker Change: Hey, Johnny Hobbled.
Speaker Change: In short no shimon that someone else that they will that she wants it so I'll, let John Mcdonald, a woman that Tommy is launching Chisholm with it so now she's on the central thing does Honeywell.
Lee: Can deliver better power generation use for it and customer care related customers are willing to pay a premium for such high power generation.
Speaker Change: Evans of Saddam he was being why it happens off the shelf to.
Speaker Change: Chandon, Shelly you talked causes that volatility either yours or misunderstood you tons of a bunch of empty floor at the times of year, where more so we tend to do a couple of T phone calls out sooner that Lisa.
Recently, we were once again recognized as a tier one energy storage provider by Bloomberg.
We have been listed in the ranking.
Lee: Wrenching for four consecutive quarters.
Speaker Change: Uh huh.
Speaker Change: It changed the coastal chip question Anita.
Lee: Resignation from a third party and customers.
Speaker Change: I've already met Sanofi, R&D manufacturing and off the self service capability and it just always.
Lee: Safe and reliable energy storage solution as well as our timing of delivery on the deployment of capacity.
Speaker Change: Ah gradually show your results you know first of all the goodness of AMR, Yes, yes.
Lee: With the increasing economic of integration of solar and storage solutions and to continue the expansion is vacations scenario.
Speaker Change: You said, it's a 300 megawatt hours a large increase compared to the same here. The last year, we expect our yes, that's to be goodness, I mean, yes that should be around a six gigawatt gigawatts hours for the four years 'twenty to 'twenty five is the overseas markets as our stretch T J priority, so far confirming owners.
Lee: Particularly against the backdrop of high energy consumption, driven by AI integrated solar and storage solutions are increasingly become feasible.
Speaker Change: And I, just don't have storage systems accounted for 50% to 60%.
Lee: The oversea market has always been one of our strengths.
Lee: In 2025, we will further expand the energy storage business globally, while continuing to focus on that.
Speaker Change: Another 20% to 30% showing strong potential for sun, leveraging our leading position in the industry. We lost so actually explore the innovative business models, that's either way to solar.
Speaker Change: Poor technology technology innovation and patient specific application scenarios we.
Speaker Change: Storage solution, providing hydrogen Z and a smart clean energy solutions to global clients and contributing to the sustainable development of the global energy.
Speaker Change: We believe that the synergy between our solar as a storage business will further increase our market of competitiveness.
Speaker Change: Alrighty Jug of Genesis Channel I guess I'm sure you just see you Johnny.
Speaker Change: On the demand side, we expect global market demand to remain at about 700 gigawatt in 2025 with strong growth in Asia Pacific Europe, The Middle East following the recent in Russia installation in China with initiation of utility scale projects in August.
Speaker Change: N P and think we've hit all of its audience Hustle agenda.
Speaker Change: Oscar do you want to have someone that you.
Oscar: You bet.
Oscar: And that will come across all he's taught me that all seem to do ourselves.
Oscar: Oh no one yeah, yeah. So again for that that also does he want to hustle did you answer that.
Speaker Change: The end of September so overall the mountain that is expected to continue to be in line with module supplier in the industry of high quality development initiatives.
Oscar: And yet and yet against football yeah.
Speaker Change: Awesome you back with you on this as you well know Josh did you use there you shouldn't your Hudson's Pampa Sushi, all hot food Hot City I was pointing out funny thing for 19, so choose with that timing that you can let me know Leif also how you can do it.
Speaker Change: In the U S. Due to the current shortage in local production capacity and the impact of reciprocal Tigris there is likely to be a wave of early purchases of cell and modules. We remain optimistic about the long term the mounting the U S market.
Speaker Change: The parts and Yogurts, which are now I would like to go over our guidance for the second quarter and that for years 2025, we stopped Albert in your production capacity for mono wafers for myself and solar modules to reach 120, 95, and 130 gigawatt, respectively. This annual production capacity.
Speaker Change: In addition to the announced the Saudi projects and existing U S domestic operations.
We are actively pursuing diverse solutions to strength our position in this market to in house, our long term competitiveness.
Speaker Change: Our third generation Telecom module to reach 14, Gigawatts to 15 Gigawatts by the end of any 25, which that module shipments to be between 20 to 25 gigawatts in the second quarter of 'twenty.
Speaker Change: We are confident that our extensive sales network and deeply localized the customer services system will help us respond to the market dynamics make flexible adjustments and continue to satisfy customers to the amount of four more vicious high efficient reliable and sustainable.
Speaker Change: 25, and at Michelin Itchy fight 200, Gigawatts for the four years 'twenty 'twenty five and we will absolutely responds to changes in market demand and the policy continuously.
Speaker Change: Okay.
Speaker Change: Thank you agenda during the challenging first quarter, we continued to control costs.
Speaker Change: Hi, Martha just strategy and supply chain management, and the consistently equal technology and product competitiveness maintained a leading position in the industry.
Speaker Change: Panthers, leading to a significant year over year decrease in comprehensive.
Speaker Change: Cost and operating expenses.
Speaker Change: Thank you Ms Lee.
Speaker Change: First quarter total shipments were $19, one gigawatt with module shipment to accounting for approximately 90%.
Speaker Change: In addition, we continued to optimize our asset and liability structure, that's where our cash reserves by the end of the first quarter.
Speaker Change: Although demand was impacted by the off season, we sustained as the industry's highest shipment levels by leveraging our global sales network.
Speaker Change: Our asset liability ratio was approximately 74% lower from nearly seven 5% at the end of the first quarter last year.
Speaker Change: The strength of our products.
Speaker Change: Shippers to overseas markets accounted for around 70% we are proactive.
By the end of the first quarter.
Speaker Change: Proactively embraced the surge in the mountain in the Indo Pacific and the North Asia market.
Speaker Change: Cash and cash equivalents.
Speaker Change: We're sorry, seven 7 billion a significant increase from $2 4 billion at the end of.
Speaker Change: Shippers to Indo Pacific market grew by nearly 10% year over year and 150% of sequential is Welsh to North Asia increased by nearly 20% of yield for you.
Speaker Change: The first quarter last year.
Speaker Change: We will continue to optimize our asset and liability structure kind of maintain healthy cash reserve.
Speaker Change: U S shipment of <unk> for approximately 5% in line with our guidance.
Speaker Change: In 25 further strengthening our preceding two risks.
Speaker Change: On the part of customers amount until our third generation of high powered products.
Speaker Change: Let me going to more details now.
Speaker Change: <unk> continue to grow our third generation high powered top count is expected to have a management outflows over 650 Watt peak.
Speaker Change: Total revenue.
Speaker Change: Was one.
Speaker Change: Hi, Sterling.
Speaker Change: Only 3% sequentially and down.
Speaker Change: With maximum.
Speaker Change: 14% year over year.
Speaker Change: 670 <unk>.
Speaker Change: The sequential decrease was primarily due to a decrease in shipments of solar modules.
Speaker Change: That's two lower degradation lower temperature coefficient higher bi facial N G E.
Speaker Change: On a year over year decrease.
Speaker Change: Was also due to a decrease in average selling price of modules.
Speaker Change: The house of reliability, it can deliver better power generation yields for customer currently customers are willing to pay a premium for such high power generation.
Speaker Change: Gross margin decreased both sequentially on a year over year, many due to the decrease.
Speaker Change: And the ASP solar modules.
Speaker Change: Recently, we were once again recognized as a tier one energy storage provider by Bloomberg.
Speaker Change: Yes.
Speaker Change: Total operating expenses.
Speaker Change: Or 350, mainly down 8% sequentially and down 18% year on year.
Speaker Change: We have been listed in the.
Speaker Change: Wrenching for four consecutive quarters.
Speaker Change: Strong origination from a third party and customers safe and reliable energy storage solution as well as our time is really on the deployment of capacity.
Speaker Change: Sequential decrease was mainly due to the decrease in the impairment of long lived assets and a decrease in the losses, resulting from this proposal.
Speaker Change: Owned leased asset.
Speaker Change: With the increasing economic of integration of solar and storage solutions and the continuous expansion in vacation scenarios, particularly against the backdrop of high energy consumption driven by AI integrated solar and storage solutions are increasingly.
Speaker Change: The year over year decrease was primarily due to the decrease in shipping costs as.
Speaker Change: We shipped fewer solar modules.
Speaker Change: Total operating expenses accounted for 18% of total revenues compared to.
Speaker Change: 17% in the fourth quarter.
Speaker Change: Last year and 13% in the first quarter last year.
Speaker Change: It becomes feasible.
Speaker Change: So oversea market has always been one of our strengths.
Speaker Change: Operating loss margin.
Speaker Change: In 2025, we will further expand the energy storage business globally, while continuing to focus on.
Speaker Change: It was about 20%.
Speaker Change: Paired with 9% in the fourth quarter.
Speaker Change: Last year, and one 5% in the first quarter.
Last year.
Speaker Change: For the technology technological innovation and up to a patient specific vacation scenarios.
Speaker Change: Moving to the balance sheet.
Speaker Change: At the end of the first quarter of cash and cash equivalents.
Speaker Change: We believe that the synergy between our solar and storage business will further increase our market of competitiveness.
Speaker Change: $43 77 billion compared with $3 8 billion at the end of the fourth quarter.
Speaker Change: And 244 billion at the end of the first first quarter last year.
Speaker Change: On the demand side.
Speaker Change: We expect our global market demand to remain at about 700 feet of us in 2025 with strong growth in Asia Pacific Europe, and the Middle East following the recent negotiation in China with initiation of utility scale projects. The August and September so overall at the Mt.
Speaker Change: And after a number of days.
Henry: Or Henry.
11 days.
Henry: Compared with 80 days in the fourth quarter.
Henry: And the 100 days in the first quarter.
Henry: Last few years.
Henry: Inventory turnover days were 84 days compared with.
Speaker Change: We expect to continue to be in line with module supplier in the industry of high quality investment initiatives.
Henry: 57 days in the fourth quarter.
Henry: 89 days.
Henry: In the first quarter.
Speaker Change: In the U S. Due to cover the shortage in local cell production capacity and the impact of received cruel tyrants serious likely it would be a wave of early purchases of cell and modules. We remain optimistic about the long term demand in the U S market.
Henry: Of last year.
Henry: At the end of first quarter total debt.
Henry: Six 4 billion compares to.
Henry: Five 5 billion at the end of the fourth quarter.
Henry: Net debt was $2 6 billion compared to one 7 billion at the end of the fourth quarter last year.
Speaker Change: In addition to the announced the Saudi projects and existing U S domestic operations.
Henry: This concludes our prepared remarks, we are now happy to take your questions I'll break. This please proceed.
Speaker Change: We are actively pursuing diverse solutions to strengthen our position in this market to in house, our long term competitiveness.
Henry: Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: We are a constant at our extensive sales network and deeply localized the customer services system will help us respond to the market dynamics make flexible adjustments and continue to satisfy customer demand for more high efficiency high efficient reliable and sustainable.
Speaker Change: Your first question comes from Brian Lee with Goldman Sachs.
Tyler bisset: Hey, guys. This is Tyler bisset on for Brian Thanks for taking my questions.
Tyler bisset: Appreciate the USS guidance of six gigawatt hours.
Tyler bisset: Wondering if you could give a little bit more details on kind of where the shipments are growing more in line with your module shipment today and I'm also curious where you guys are sourcing your battery cells.
Speaker Change:
Speaker Change: Uh huh.
Mr. Patten: Thank you Jarrod you already have a challenging first quarter, we continued to control costs.
Mr. Patten: Leading to a significant year over year decrease in <unk>.
Tyler bisset: It's manley.
Dominic: Dominic so yeah, that's our shipment mix, it's dominated by Asia Pacific Region, Europe region emerging markets those are.
Mr. Patten: Comprehensive.
Mr. Patten: Cost and operating expenses.
Mr. Patten: In addition, we continue to optimize.
Mr. Patten: Our asset and liability structure, that's where our cash reserves.
Tyler bisset: Together with China goes before.
Tyler bisset: Readers are our main target in terms of 2000 attendees five soar, which is slightly different from what we have for modules, but for the key market. It's a very.
Mr. Patten: And on the first quarter.
Mr. Patten: Our asset liability ratio was approximately 74% lower from nearly seven 5% at the end of the first quarter last year.
Tyler bisset: That's a it's a very very light to each other but in terms of geographic mix because of the.
Mr. Patten: By the end of the first quarter, our cash and cash equivalents.
Mr. Patten: First 3.77 billion a significant increase from $2 4 billion at the end.
Tyler bisset: Trade barrier U S trust or <unk>.
Tyler bisset: Difficult to.
Tyler bisset: Stan.
Tyler bisset: Yes that business.
Mr. Patten: The first quarter.
Tyler bisset: In the U S right now.
Mr. Patten: Last year.
Mr. Patten: We will continue to optimize our asset and liability structure and maintain a healthy cash reserve.
Tyler bisset: Thank you and.
Speaker Change: Given the final determination on CBD, which was I guess relatively more favorable for Malaysia. How are you thinking about your future imports to the U S could you see that potentially increasing at all or do you think it's more likely to stay in the 5% range.
Mr. Patten: In 25 further strengthen our preceding two risks.
Mr. Patten: Let me go in more.
Mr. Patten: More details now.
Mr. Patten: Total revenue.
Mr. Patten: Well its 1.9.
Mr. Patten: Hum.
Speaker Change: Well I think it used to be these only preliminary tariffs. So are there are still have a big credit funds that termination after 12 months customer theorists, which means a company a lot of uncertainties. So in that case, we are trying to look.
Mr. Patten: Only 3% sequentially and down.
Mr. Patten: 14% year over year.
Mr. Patten: The sequential decrease was primarily due to decrease in shipments of solar modules.
Mr. Patten: On a year over year decrease.
Mr. Patten: But also due to a decrease in average selling price of modules.
Speaker Change: Came to the different of the options, we have in order to provide more search and cheese and providing more competitive in terms of the cost as well. So right now we're still working hard on that for the short term to <unk> recent filings.
Mr. Patten: Gross margin decreased both sequentially and year over year, many due to the decrease.
Mr. Patten: Yeah.
Mr. Patten: P O solar modules.
Mr. Patten: Total operating expenses.
Speaker Change: Oh change.
Mr. Patten: Whereas three hungry that's 15, mainly from.
Speaker Change: Again, it was a trade barriers is pretty new but.
Mr. Patten: 8% sequentially and down 18% year on year.
Speaker Change: Long term, we still have our commitments with a glass market that we felt our strategy.
Mr. Patten: Sequential decrease was mainly due to the decrease in the impairment of long lived assets and a decrease in the losses, resulting from this proposal.
Speaker Change: Dry winter factories in middle East together with.
Speaker Change: Local appreciate you asked where students when they come in.
Mr. Patten: Owned leased asset.
Mr. Patten: The decrease was primarily due to the decrease in shipping cost.
Speaker Change: Alright, Thank you very much.
Speaker Change: Thank you.
Mr. Patten: We shipped fewer solar modules.
Speaker Change: Your next question comes from Philip Shen with Roth Capital Partners.
Mr. Patten: Total operating expenses accounted for 18% of total revenues compared to.
Speaker Change: Okay.
Hi, everyone. Thanks for taking my questions. So you guys had another negative gross margins.
Mr. Patten: 13% in the fourth quarter.
Mr. Patten: Last year and 13% in the first quarter last year.
Speaker Change: For the first time in a long time in Q1 and was wondering if.
Speaker Change: If you can talk through what you expect.
Mr. Patten: Operating loss margin.
Speaker Change: For margins for Q2, and Q3 and then when do you expect.
Mr. Patten: It was about 20%.
Mr. Patten: Compared with 9% in the fourth quarter.
Mr. Patten: Last year, and one 5% in the first quarter.
Speaker Change: The margins to sort of go back positive effects.
Speaker Change: Uh huh.
Mr. Patten: Last year.
Mr. Patten: Moving to the balance sheet.
Speaker Change: And that's sort of out of the gross margin and this is a negative.
Mr. Patten: In the first quarter, our cash and cash equivalents.
Mr. Patten: Fourth breakpoint, seven 7 billion compared with $3 8 billion at the end of the fourth quarter.
Speaker Change: In the last five years.
Speaker Change: There is an inflection.
Speaker Change: No.
Supply and demand imbalance.
Mr. Patten: And 2.44 billion at the end of the first first quarter last year.
Speaker Change: So as you know last year.
Speaker Change: On top of that the first quarter.
Mr. Patten: Payoffs in number of days.
Henry: Sure Henry.
Speaker Change: No.
Speaker Change: The slack season.
Mr. Patten: 11 days.
Speaker Change: Mortgage exposures.
Mr. Patten: Compared with 80 days in the fourth quarter.
Speaker Change: China market.
Mr. Patten: And 100 days in the first quarter.
Speaker Change: And we expect.
Speaker Change: Short term restarting their gross margin.
Mr. Patten: Last few years.
Mr. Patten: Inventory turnover days.
Speaker Change: And.
Speaker Change: To improve on this.
Mr. Patten: For 84 days compared with.
Speaker Change: Likely in the second quarter given.
Mr. Patten: 57 days in the fourth quarter.
Speaker Change: The module price upward trends.
Mr. Patten: And 89 days.
Speaker Change: Purchase demand from China and other regions.
Mr. Patten: In the first quarter.
Mr. Patten: Last year.
Speaker Change: In the second half of the year.
Mr. Patten: At the end of the first quarter total debt.
Speaker Change: And we expect it to be stable and may be have a chance to improve.
Mr. Patten: Well, it's $6 4 billion compares to.
Speaker Change: <unk>, who we believe.
Speaker Change: And.
Mr. Patten: Five 5 billion at the end of the fourth quarter.
Speaker Change: Currently there is not sustainable even for the top tier companies.
Mr. Patten: <unk> was $2 6 billion compared to one 7 billion at the end of the fourth quarter last year.
Speaker Change: On the phone the supply side, the way I'm seeing more and more companies.
Speaker Change: In the face off in Minnesota industries.
Mr. Patten: This concludes our prepared remarks, we are now happy to take your questions I'll break that please proceed.
Rocco: Rocco with that answer.
Speaker Change: Certain days or international trade.
Speaker Change: By the end of this year and we hope we have more curve.
Mr. Patten: Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: In car applications.
Charlie: Thank you okay. Thank you Charlie.
Brian Lee: Your first question comes from Brian Lee with Goldman Sachs.
Speaker Change: So.
Speaker Change: Shifting to the the.
Brian Lee: Hey, guys. This is Tyler bisset on for Brian Thanks for taking my questions.
U S market.
Speaker Change: There is the.
Brian Lee: Appreciate the E. S. S guidance of six gigawatt hours and wondering if you could give a little bit more details on kind of where these shipments are going is this more in line with your module shipments today and I'm also curious where you guys are sourcing your battery cells.
Speaker Change: 145% tariff.
Speaker Change: I wanted to understand what's your the updates on your.
Speaker Change: Plans to ramp up U S C.
Speaker Change: So manufacturing Hum.
Speaker Change: Florida or wherever that might be and so and then also with the 145% tariff.
Brian Lee: Oh.
Speaker Change: Are you able to imports.
Brian Lee: It's manley.
Speaker Change: Solar so tools without.
Brian Lee: So, yes that shift, but the mix is dominated by our Asia Pacific Region Europe region.
Speaker Change: Is there an exemption for the tools or is there no Jim exemption for the tool. So it makes the ramping of U S cell manufacturing are more difficult.
Brian Lee: Emerging market those together with China those before.
Brian Lee: Our main target in terms of 2025, soar, which is slightly different from what we have for modules, but for the key markets. It's a very.
Speaker Change: Okay.
Speaker Change: I think it might be kind of the ball questions about the long term.
Speaker Change: <unk>.
Speaker Change: Yeah.
Low coal production U S for local customers in the United States trends.
Brian Lee: That's a it's a very very light to each other but in terms of geographic mix because of the trade.
Speaker Change: <unk> Com system that was I think you know that.
Brian Lee: Great barrier U S crush ore is difficult.
Speaker Change: Long term policies from the bank.
Speaker Change: Current Trump administrations.
Brian Lee:
Brian Lee: Yes.
Speaker Change: Just for the short term, there's a lot of our strategies.
Brian Lee: In the U S right now.
Speaker Change: As you know the budget costs.
Brian Lee: Thank you and given.
Speaker Change: Okay.
Speaker Change: Given the final determination on CBD, which was I guess relatively more favorable for Malaysia. How are you thinking about your future imports to the U S could you see that potentially increasing at all or do you think it's more likely to stay in the 5% range.
Speaker Change: Thank you.
Speaker Change: Maybe you know what.
Speaker Change: Interesting.
Speaker Change: Okay.
Speaker Change: This kind of space.
Speaker Change: So why do we take out approaches we're consistently rather the policies.
Speaker Change: From different angles.
Well I think I used to be these only are preliminary.
Speaker Change:
Speaker Change: As long as there is some kind of us certainties.
Speaker Change: So are there still have let's say call it a science that termination after Tom.
We strongly believe with U S solar market.
Speaker Change: Bob.
Speaker Change: Customer theorists wish rental company a lot of uncertainties. So in that case, we are trying to look into the different of the options we have.
Speaker Change: Hey, Bob you know in the next year.
Speaker Change: Specifically for the you know if we want to be able to solar cells.
Speaker Change: And the way the.
Speaker Change: To provide more searching chiefs and providing more competitive in terms of the cost as well. So right. Now we are still working hard on that for the short term and for some reason.
Speaker Change: Coming from China.
Speaker Change: I'm going to turn you charge it.
Speaker Change: Crazy grades right now it makes sense to make the decisions even from that specific angle.
Speaker Change: So back to your question.
Speaker Change: Oh change.
Speaker Change: Together these trade barriers, it's pretty new but.
We don't have the time in the short term you know solar sale and reviewed.
Speaker Change: Long term, we still have our commitments with the glass market, we thought it was.
Speaker Change: Yeah, you asked Bob we have.
Our conversation that you'd rather good.
Speaker Change: Strategy.
Speaker Change: Dry winter factories in the middle East.
Speaker Change: The policies.
Speaker Change: Initial signs of potential over.
Speaker Change: Okay.
Speaker Change: Our local appreciate you asked where students when they come in.
Speaker Change: Tarver situations.
Speaker Change: Okay, Alright, thank you very much I'll pass it on.
Speaker Change: Alright, Thank you very much.
Speaker Change: Thank you.
Speaker Change: Once again, if you wish to ask a question. Please press star one on your telephone and might be a name to be announced your next question comes from Alan <unk> with Jefferies.
Speaker Change: Your next question comes from Philip Shen with Roth Capital Partners.
Speaker Change: Yeah.
Philip Shen: Hi, everyone. Thanks for taking my questions.
Philip Shen: So you guys had another negative gross margins.
Speaker Change: Okay.
Alan: Thank you for taking my question I just Shannon on.
Philip Shen: For the first time in a long time in Q1.
Speaker Change: Hi, My first question is on.
Philip Shen: And was wondering if you can talk through what you expect.
Speaker Change: It is the first time I think the company has provided the guidance on ESI, so I'd like to know.
Philip Shen: For margins for Q2, and Q3 and then when do you expect are the margins to sort of go back positive effects.
Speaker Change: If there is any indication on.
Speaker Change: The margins on USS.
Speaker Change: Like simple pop range.
Philip Shen: Uh huh.
Speaker Change: <unk> has been quite competitive seem to be doing as well.
Philip Shen: And in front of us.
Philip Shen: Marty.
Philip Shen: The next areas.
Speaker Change: Yes.
Philip Shen: Alright.
Speaker Change: Oh, you mean the margin Ross.
Philip Shen: In the last five years.
Speaker Change: Yes.
Speaker Change: Hi, Jeff.
Philip Shen: <unk>.
Speaker Change: Yeah, Yeah gross margin.
Philip Shen: Yes.
Philip Shen: Supply and demand in balance.
Speaker Change: I think when we target 5% to 10% is not worth it.
Philip Shen: So as you know last year.
Speaker Change: <unk> targets.
Philip Shen: On top of that the first quarter.
Speaker Change: Given the Venezuela.
Philip Shen: Yeah.
Speaker Change: We're developing them.
Philip Shen: That's not to say that we have more exposures to.
Speaker Change: Starting from the kind of what we're a small scale last year, we achieved one gigawatts this year.
Philip Shen: China market.
Philip Shen: And the we expect the.
Philip Shen: Short term, we found that the gross margin.
Speaker Change: And we.
Speaker Change: Compliment what happened with incentives finishes in market, particularly.
Philip Shen: And so as to improve on this.
Kevin: Second quarter Kevin.
Speaker Change: Particularly in Asia Pacific.
Kevin: The module price upward trends.
Speaker Change: America something emerging markets.
Kevin: First the marathon in China, a lot of our ratios.
Speaker Change: And.
Speaker Change: So the profitability is not there.
Kevin: And the.
Kevin: Second half of year, and then we expect it to be stable may be having.
Speaker Change: The first priority but.
Speaker Change: In terms of gross margin.
Kevin: As a child to who.
Kevin: Cool.
Speaker Change: We expect.
Kevin: We believe in.
Yes.
Kevin: The currency there isn't it's not sustainable even for the top tier companies.
Speaker Change: Kind of a range of 5% to 10%.
Speaker Change: Okay.
Speaker Change: 5% to 7% right.
Kevin: It's on the supply side, the way I see more and more companies and you know and.
Speaker Change: Five to 10, 7%.
Kevin: Face off in Minnesota industries.
Speaker Change: Okay. Thank you.
Speaker Change: And my next question is about.
Kevin: I'll go with that uncertainty is on international trade.
Speaker Change:
Speaker Change: So did the company receive from Iot.
Kevin: By the end of this year, we have more car.
Speaker Change: Got it.
Kevin: A clarification.
Speaker Change: For the production of last year.
Speaker Change: At this point in time or if the company has sold any of the I 45 credit already.
Charlie: Thank you okay. Thank you Charlie.
Kevin: So.
Kevin: Shifting to the.
Speaker Change: And last year I think we're fine.
Kevin: The U S market are there is the.
Speaker Change: Closing on the <unk>.
Speaker Change: Filings.
Speaker Change: And if I can.
Kevin: 145% tariff.
Speaker Change: Yeah.
Speaker Change: I wanted to understand what's your the updates on your plans.
Speaker Change: Akshay.
Speaker Change: Tax payable.
Kevin: Plans to ramp up U S C.
Speaker Change: Yes.
Speaker Change: Facilities and.
Kevin: So manufacturing and.
Speaker Change: Exploring opportunities.
Kevin: Florida or wherever that might be and so and then also with the 145% tariff.
Speaker Change: To sell credits.
Speaker Change: Outside of the Masters.
Speaker Change: Process.
Speaker Change: Are you able to imports.
Speaker Change: So you managed to get.
Kevin: Solar cell tools without.
Speaker Change: The crisis already just managing to sell it to financial institutions.
Kevin: Is there an exemption for the tools or is there no exam exemption for the tool. So it makes the.
Speaker Change: For this year.
Speaker Change: Yeah. This is the way we plan.
Kevin: Wrapping of U S cell manufacturing are more difficult. Thanks.
Speaker Change: Testing and warehouse, one gigawatts and for operations.
Speaker Change: And well.
Kevin: Okay.
Kevin: I think it might be kind of the floor questions about the long term.
Speaker Change: Oh, yeah and potential investors.
Speaker Change: Interesting.
Speaker Change: Sure.
Speaker Change: Super crowds credit problems.
Kevin: <unk>.
Kevin: Yeah.
Speaker Change: Yes.
Speaker Change: So where are you in that process.
Speaker Change: Low code for dogs seeing as you asked for local customers in the United States as a trend.
Speaker Change: Kind of on vacation and that negotiation.
Speaker Change: Thank you.
Kevin: That is a system that was a I think you know the long term policies from this.
Speaker Change: So and another question is.
Speaker Change: So what do you see U S shipment target.
Speaker Change: Current Trump administrations.
Speaker Change: Approximately four fourth this year, because there's a lot of Oh you changes.
Speaker Change: And.
Speaker Change: There's a lot of short term, there's a lot of our southern Indiana.
Speaker Change: As you know.
Speaker Change: Cost with theirs.
Speaker Change: Since last time, we talk and is there already some inventory in the U S to support that shipment.
Speaker Change: Right.
Speaker Change: There is a maybe.
Speaker Change: Yeah.
Speaker Change: You know interesting that it would be Oh say, yeah, I know that's kind of losses.
Speaker Change: Okay.
Speaker Change:
Speaker Change: The range of 5% to 10% Youre rising uncertainty I think that.
Speaker Change: And so why do we take our approach is very consistent with what you've added the policies.
Speaker Change: These headwinds.
Speaker Change: But I think we.
Speaker Change: From different angles.
Speaker Change: And how soon it is.
Speaker Change: As long as there is some kind of loss of.
Speaker Change: Uh huh.
Speaker Change: Certain days.
Speaker Change: Yes.
Speaker Change: We strongly believe the dress solar market.
Speaker Change: They're short term.
Speaker Change: Uh huh.
Speaker Change: We'll be happy to do the.
Speaker Change: Hey, Bob you know in the next year and just specifically for the you know if we want to be able to sort of ourselves.
Speaker Change: Shipments of the U S.
<unk>, 5%.
Speaker Change: On that basis.
Speaker Change: That said the low case, but we're on top of them.
Speaker Change: It is underway.
Speaker Change: And the way.
Speaker Change: Can you kind of on China.
Speaker Change: Right.
Speaker Change: I was at a time you know it's hard.
Speaker Change: We can achieve at least 5%.
Speaker Change: It's a crazy grades right now it makes sense to it makes it a decision.
Speaker Change: The alternatives.
Speaker Change: Hum.
Speaker Change: But it seems like I'm angles.
Speaker Change: Okay, Alright sounds good.
Speaker Change: So back to your question.
Speaker Change: Hi, Chad.
Speaker Change: We don't have at this time in the short term you know sort of ourselves as a field.
Speaker Change: There is.
Speaker Change: Our vertical supply chain to U S and the weekend of the Super Bowl.
Bob: Yes, Bob we have fun.
Speaker Change: Okay, so 5%.
Speaker Change: Our conversation that your batteries.
Speaker Change: Yeah, so 5% of total shipment right like so if it's 85 to 100 gig off with this year is around 45 people.
Speaker Change: The promises the potential size and potential yeah, it's harvest situations.
Speaker Change: Okay.
Speaker Change: Okay. Thank you very much I'll pass it on.
Speaker Change: Yes, yes.
Speaker Change: Sure.
Speaker Change: Well once again, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced your next question comes from Alan <unk> with Jefferies.
Speaker Change: Yes. Thank you my last question is on the shareholder a shareholder return.
Speaker Change: So I think after the announcement of full Q4 results and first Q results now.
Alan: Thank you for taking my question I did on my first question is on it is the first time I think that the company has provided the guidance on E. S. S. I would like to know.
Speaker Change: So wonder if the company can start buying back the shares keeping this does this shift actually happen once it went down quite a bit.
And what's the pace of the buyback will look like.
Alan: If there's any indication on the <unk> on the margins on E. S. S.
Speaker Change: Yes.
Speaker Change: No.
Speaker Change: The release of the first quarter and we plan to buyback following the market. We've seen is at that time given their brothers is worried about.
Alan: Like simple power range, because yes. This has been quite competitive seem to be doing as well.
Alan: Oh, you mean the margin right.
Speaker Change: That's on top of that.
Alan: Yes.
Plan too.
Alan: Gotcha.
Speaker Change: Plan to declare a dividend, which is subject to for that pool.
Alan: Yeah, Yeah gross margin.
Alan: I think it's probably a 5% to 7% is not worth it.
Speaker Change: I assume you are.
Speaker Change: Schedule.
Alan: <unk> targets.
Speaker Change: So D D D.
Alan: Given the opinions.
Alan: Great to hear about.
Alan: No.
Alan: Starting from the kind of what we're in small scale last year, we achieved one gigawatts this year.
Speaker Change: So my understanding the dividends will be.
Speaker Change: Approximately like $50 million right. If it's around $1 per share say for example, so with the buyback will be looked like 150 million dead.
Alan: And we.
Speaker Change: How confident are warehouses, Tonga, then send to penetrate the market in particular.
Alan: Particularly since you're not feature.
Speaker Change: Uh huh.
Speaker Change: We have not decided but it's.
Alan: Latin America, South American markets.
Speaker Change: It's roughly I think in at least 100 million split up into the <unk>.
Speaker Change: And.
So then prefer but is it not.
Speaker Change: The first priority is to.
Speaker Change: Dividend plus the repurchase.
Speaker Change: In terms of gross margin.
Speaker Change: This is the first step.
Speaker Change: We expect.
Now I see where you're coming in okay favorite stat.
Speaker Change: And kind of a range of 5% to 7%.
Speaker Change: Two.
Speaker Change: Monetize.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: In answer to your restaurant for some you know.
Speaker Change: Five 5% to 7% right.
Speaker Change: It's rich.
Speaker Change: Five to 10, 7%.
Speaker Change: It's less than that.
Speaker Change: Yes.
Speaker Change: Okay. Thank you and my next question is about.
Speaker Change: On top of that we may explore options to monetize.
Speaker Change:
Speaker Change: So did the company receive I R E.
Speaker Change: Assets from the U S perspective.
Speaker Change: So for the production of last year.
Speaker Change: Okay, so, but before that happens and it's actually you can already start and at least $100 million, which is slide 10% off to always spending shares right.
Speaker Change: At this point in time or if the company has sold any of the I 45 six credits already.
Yeah.
Matt: Yeah, Hi, Matt.
Speaker Change: And last year I think we found it isn't on the filings.
Matt: Is that kind of dividend plus the purchase.
Speaker Change: And it's that kind of yeah.
Matt: That's Uh huh.
Speaker Change: Akshay.
Matt: So after you liquidate some of your financial assets, there may be upside to this $100 million dividend plus buyback.
Speaker Change: Tax payable for the.
Speaker Change: Uh huh.
Speaker Change: Yeah, we are exploring the opportunities.
Matt: We may increase depending on what it is.
Speaker Change: To sell quite as to the outside of the fastest.
Matt: And Oh.
Matt: We can monetize assets.
Speaker Change: Process.
Matt: Thanks, a lot of time I don't have a parcel thank you tani.
Speaker Change: So you managed to get a quite this already just managing to sell it to financial institutions.
Speaker Change: Once again, if you wish to ask a question. Please press star one on your telephone and might be your name to be announced.
Speaker Change: For this year.
Speaker Change: Yeah, that's the way we find you know it's a big deal.
Speaker Change: We have two gigawatts for operations.
Speaker Change: Star one on your telephone and wait.
Speaker Change: Well, there's a lot of them.
Speaker Change: For your name to be announced if you have any questions.
Speaker Change: And potential investors, who are interested in that two to.
Speaker Change: Your next question comes from Rajeev <unk> with <unk> capital.
Speaker Change: Super crowded credit problems.
Speaker Change: And.
Speaker Change: Hello, Charlie.
Speaker Change: So, whereas in the pasta sauce.
Speaker Change: The first question is about the market share.
Speaker Change: And location in that negotiation.
Speaker Change: And that the market might go through about 700, Gigawatts and last year that caused a little bit around 600 plots and I'm wondering you know if.
Speaker Change: Thank you.
Speaker Change: So and another question is so what is the U S shipment target.
Speaker Change: Approximately four for a full fourth this year, because there's a lot of Oh.
Speaker Change: Even if you do the high end of your range, which is 100 Gigawatts Europe.
Speaker Change: <unk> market share it looks like it might be lower than last year.
Speaker Change: Change is.
Speaker Change: Since last time, we talk and is there already some inventory in the U S to support that shipment.
Speaker Change: Lower than 2023.
Speaker Change: You clarified that.
Speaker Change: That discrepancy.
Speaker Change: Okay.
Speaker Change: You know the range of 5% to 10% Youre rising uncertainty I think that's it.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: I think the last time, we were talking about you know our strategy is not.
Speaker Change: So, but I think we.
Speaker Change: Okay.
Speaker Change: Increase though.
Speaker Change:
Speaker Change: Yes.
Speaker Change:
Penetrating more markets here.
Speaker Change: You know we're a lumpy.
Speaker Change: The imbalance of supply and demand science, and particularly that the industry is losing money.
Speaker Change: They're short term.
Speaker Change: Healthy habit has an impact.
Speaker Change: Jim is a U S.
Speaker Change: 5% is kind of in place.
Speaker Change: What we do.
Speaker Change: Doing it so we want to be flexible.
Speaker Change: Okay.
Speaker Change: I'm confident in them.
Speaker Change: Total shipments.
Speaker Change: Right.
Speaker Change: We guided 85 to 100 Gigawatts.
Speaker Change: We've attached she's on these 5%.
Speaker Change: So some of it is you know is a kind of the.
Speaker Change: What it means is we want to balance that.
Speaker Change: Hum.
Speaker Change: <unk> shipment and possibilities.
Speaker Change: Okay, Alright sounds good.
Speaker Change: As far as the cash flow perspective.
Speaker Change: Hi, Chad.
Speaker Change: Yes.
Speaker Change: Proactive and.
Speaker Change: Furthermore, sarpanch into U S and if we kind of cyclical.
Speaker Change: Top all of that I mean, you do.
Speaker Change: You know to select.
Speaker Change: Okay, so 5%.
Speaker Change: Customers, we have a lot of potential customers.
Speaker Change: Yeah, so 5% of total shipment right like so if it's 85 to 100 gig off with this year is around four to five people.
Speaker Change: Interest orders, but we need to.
Speaker Change: To be more selective.
Speaker Change: For the long term long downturn my thinking last time, we're talking about retiring 22.
Speaker Change: Yeah.
Speaker Change: Yes, the answer is yes.
Speaker Change: This 20% market share.
Speaker Change: Yes. Thank you my last question is on the shareholder a shareholder return.
Speaker Change: So for the module business, so, but it's not.
Speaker Change: Program. So I think after the announcement of a full Q4 results and our first QE salt now so wonder if the company can start buying back the shares keeping this does does chefs actually has also went down quite a bit.
Speaker Change: But it's nothing wrong.
Speaker Change: Well nice target.
Speaker Change: We need to be.
Speaker Change: Wanted to focus that we need to focus our product competitiveness, we continue to invest in R&D and so.
Speaker Change: So penetrated as a key market create some kind of premium make sure.
Speaker Change: And what's the pace of the buyback will look like.
Speaker Change: Yeah what are after.
Speaker Change: This is sustainable.
Speaker Change: And the release of the first quarter and we plan to buyback following the market I was senior director of times, given the weather issues were resolved.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Along the same lines on the market growth.
Speaker Change: Can you talk about.
Speaker Change: Well rich regions geographic regions are going to get 200 Gigawatts of Brooks from last year.
Speaker Change: On top of that we plan.
Speaker Change: Trying to we're trying to declare a dividend which is subject to for that pool.
Speaker Change: How much growth do you expect in China, and the U S. For example, and also in Europe and India.
Speaker Change: I assume you are.
Speaker Change: Schedule.
Speaker Change: So D D D a.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: They talk about it.
Speaker Change: So my understanding the dividends will be approximate be like $50 million right. If it's around one one dollar per chassis. For example, so with the buyback will be looked like 150 million dead.
Speaker Change: In the.
Speaker Change: Top level. So we are looking at the global demand at roughly 700 gigawatt. So we actually have the largest market is believed to be China same as last year, but the water side, China is expected to grow roughly 10% to 15%.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: We have not decided yet, but it's roughly I think at least a 100 and then you know we split up into the <unk>.
Speaker Change: Which will account for around 45% of the global demand.
Speaker Change: Dividends plus the purchase.
Speaker Change: This is the first set by then.
Speaker Change: And the second largest after China believed to be.
Speaker Change: No I think what you're telling me okay favorite stat.
Speaker Change: We say Europe.
Speaker Change: We again saw a double Europe will be over 100, New go 100 gigawatt level, So I think that the OLED.
Speaker Change: I'd like to monetize.
Speaker Change: Monetize the finance or you are asking for.
Speaker Change: Well of course, I'm you know okay.
Speaker Change: Companies, which one which was less debt.
Speaker Change: The only true market passed the 100 gigawatt threshold in 2025, but for sure there are the other market.
Speaker Change: Yes.
Speaker Change: On top of that we may explore options to monetize them.
Speaker Change: Assets from the U S 45th factor.
Speaker Change: Very interesting and the sizable U.
Speaker Change: Okay, so but before that happens it's actually you can already start and there's at least 100 million, but just like 10% off to always spending shares right.
Speaker Change: U S well roughly looking at 50 to 55 gigawatt level.
Speaker Change: In India, we are looking at around 70 to 75 gigawatt level. So.
Speaker Change: Yeah, well heightened ma'am.
Speaker Change: I think he is a kind of good dividend plus the purchase yeah. That's.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: All the big numbers.
Speaker Change: That's a number that says that.
Speaker Change: Right.
Speaker Change: But for sure.
Speaker Change: Yeah. So after you liquidate some of your financial assets, there may be upside to this 100 million dividend plus buyback.
Speaker Change: So attractive real estate, mainly coming from emerging markets for example, in the Asia Pacific region.
Speaker Change: We may increase depending.
Speaker Change: And also are the <unk>.
Speaker Change: Africa.
Speaker Change: Oh, that's happening and Oh.
Speaker Change: And because of the low basis from last year as our growth rate is pretty high but if the euro change was the absolute gross numbers in terms of the gigawatt definitely the top four market in which I just mentioned is.
Speaker Change: So we can monetize assets.
Speaker Change: Thanks, a lot of personal I hope Hasan Thank you Tony.
Speaker Change: Yeah.
Speaker Change: Once again, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: The key focus.
Speaker Change: So just to satisfy so you're expecting the China China.
Speaker Change: At Star one on your telephone and wait for your name to be announced if you have any questions you.
Speaker Change: China will grow by 10% to 15% this year.
Speaker Change: <unk>, yes.
Speaker Change: Your next question comes from Rajeev <unk> with <unk> capital.
I see okay.
Speaker Change: Final question.
Speaker Change: Are you still getting a premium pricing for your top one products based on the technology.
Rajeev: Oh Hello, Charlie.
Rajeev: The first question is about the market share.
Speaker Change: It depends I wish wafer technology, which products you are comparing with right.
Speaker Change: Mentioned that are deferred them to market Mike go through about 700, Gigawatts and last year did cause a little bit around 600 plots and I'm wondering you know even if you do the high end of your range, which is 100 gigawatts.
Speaker Change: Definitely from the customer and as long as a product the Asa generating more power output or technically more yield and more IRS return customer are more than halfway to obtain premium offset by the FERC.
Speaker Change: <unk> market share it looks like it might be lower than last year and lower than 2020 Threep would.
Speaker Change: Yes.
Speaker Change: Could you clarify that.
Speaker Change: I see can you also give the breakdown you expect between the D G and utility scale for this year for <unk>.
Speaker Change: That discrepancy.
Speaker Change: Okay.
Speaker Change: I think the last time, we talked about you know our strategy is not yet.
Speaker Change: Yes, strategically we lowered the <unk> numbers the benefit based on the.
Speaker Change: The increase though.
Speaker Change: The price plan.
Speaker Change: And this is a low market share.
Speaker Change: Last year, the TCE ratio.
Speaker Change: No.
Speaker Change: Hi, good morning, So close to 40 50, but the high Forty's less at 47 46. This year. The number will go down to roughly 30 to clarify rich.
Speaker Change: And so the supply and demand sides, and particularly that the indices are losing the money and the work. We are doing is we want to be flexible.
Speaker Change: Total shipments, which we guided in the 85 to 100 Gigawatts.
Speaker Change: I see okay. Thank you.
Speaker Change: Yes. Thank you.
Speaker Change: Once again, if you wish.
Speaker Change: What I had in me says, we want to balance the utilization shipment and profitability.
Speaker Change: To ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: Yes.
Speaker Change: As far as a cash flow perspective, and on top of that I mean, you do.
Speaker Change: Okay.
Speaker Change: And one last call for a question.
Speaker Change: Star one on your telephone and wait for your name to be announced.
Speaker Change: Climate.
Speaker Change: Now to selected customers.
Speaker Change: Customers, we have a lot of potential customer center.
Speaker Change: Okay.
Speaker Change: We are showing no further questions at this time.
Speaker Change: <unk> orders, but we need to.
Speaker Change: To be more sat next to Bob.
Speaker Change: Thank you for your attendance today that does conclude our conference.
Speaker Change: But for the long term long downturn my thinking last time, we're talking about retiring Cindy.
Speaker Change: You may now disconnect.
Speaker Change: These 20% market share.
Speaker Change: So for the module business. So it's not you know, but it's nothing wrong.
Speaker Change: Nice target.
Speaker Change: They need to be.
Speaker Change: What what is the focus that we need to focus our product competitiveness, we continue to invest in the R&D and.
Speaker Change: So penetrated as a key market some kind of premium make sure you know that business is sustainable.
Speaker Change: Okay.
Speaker Change: Along the same lines on the market growth.
Speaker Change: Can you talk about.
Speaker Change: You know, where which regions drove that the regions are going to get 200 Gigawatts of Brooks from last year.
Speaker Change: How much growth do you expect in China, and the U S. For example, and also in Europe and India.
Speaker Change: Yeah.
Speaker Change: Oh sure I forgot to talk about it.
Speaker Change: In the.
Speaker Change: Top level. So we are looking at the global demand.
Speaker Change: 700, gigawatt, so where she has the largest market that you believe to be China same as last year, but the washer side, China is expected to grow roughly 10% to 15%.
Speaker Change: So which will account for around 45% of all that goes with the Mt.
Speaker Change: Second largest after China is believed to be.
Speaker Change: We say Europe, the Europe region.
Speaker Change: We again saw a duffel York will be over 100, New go 100 gigawatt level. So I think that's the.
Speaker Change: So all the way to market our past the 100 gigawatt threshold in 2025, but of course right. There are the other markets.
Speaker Change: Very interesting and the sizable such that you are roughly looking at 50 to 55 D wasn't demo and India. We are looking at around 30 to 35 gigawatt level. So.
Speaker Change: Yes sure.
Speaker Change: The all of the big numbers.
Speaker Change: But for sure.
Speaker Change: So attractive real estate, mainly coming from emerging markets for example, in the Asia Pacific region.
Speaker Change: And also are the African region.
Speaker Change: And because of the low basis from last year as our growth rate is pretty high but if you ever change was the absolute gross numbers in terms of the gigawatt definitely the top four market, which I just mentioned.
Speaker Change: The key focus.
Speaker Change: So just to clarify so you are expecting the China.
China will grow by 10% to 15% this year.
Speaker Change: 10 to 15 years.
Speaker Change: I see okay and a final question.
Speaker Change: Are you still getting a premium pricing for your top one products based on the technology.
Speaker Change: It depends I wish I wish technology, which products do you also on air with Ryan sorry.
Speaker Change: Definitely from the customer and that's all I've got for eight to generating more power output or technically it's more a yield of more IRS return path.
Speaker Change: Customer I'm more than happy to take premium all satisfied at first.
Speaker Change: I see can you also give the breakdown you expect between the D G and utility scale for this airport for a logical.
Speaker Change: Yeah sure attention today, we lowered the easy numbers.
Speaker Change: Based on the price.
Speaker Change: Last year the D C ratio issue.
Speaker Change: Hi, good morning, So close to 40 50, but the high Forty's less at 47 46. This year. The number will go down to roughly 30 to 35 ish.
Speaker Change: I see okay. Thank you.
Speaker Change: Yeah. Thank you.
Speaker Change: Once again, if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: Okay.
Speaker Change: <unk> is one last call for a question.
Speaker Change: Star one on your telephone and wait for your name to be announced.
Speaker Change: Okay.
Speaker Change: We are showing no further questions at this time.
Speaker Change: Thank you for your attendance today that does conclude our conference you may now disconnect.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].