Arq Inc (ARQ) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Arq Q2 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anthony Nathan, Head of Investor Relations.

您好，歡迎參加 Arq 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹主持人、投資者關係主管安東尼·內森 (Anthony Nathan)。

Thank you. You may begin.

謝謝。你可以開始了。

Thank you, operator. Good morning, everyone, and thank you for joining us today for our second quarter 2025 earnings results call.

謝謝您，接線生。大家早安，感謝您今天參加我們的 2025 年第二季收益結果電話會議。

With me on the call today are Bob Rasmus, Arq Chief Executive Officer; Jay Voncannon, Arq Chief Financial Officer; and Stacia Hansen, Arq Chief Accounting Officer.

今天與我一起參加電話會議的還有 Arq 執行長 Bob Rasmus、Arq 財務長 Jay Voncannon 和 Arq 首席會計長 Stacia Hansen。

This conference call is being webcasted live within the investor section of our website, and a downloadable version of today's presentation is available there as well. A webcast replay will also be available on our site, and you can contact Arq's investor relations team at investors@arq.com.

本次電話會議將在我們網站的投資者專區進行網路直播，您也可以在那裡下載今天的簡報。我們的網站還將提供網路直播重播，您可以透過 investors@arq.com 聯繫 Arq 的投資者關係團隊。

Let me remind you that the presentation and remarks made today include forward-looking statements as defined in Section 21e of the Securities and Exchange Act. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied in these statements.

讓我提醒您，今天的演示和評論包括《證券交易法》第 21e 條定義的前瞻性陳述。這些聲明是基於我們目前掌握的信息，涉及風險和不確定性，可能導致實際未來結果、業績、業務前景和機會與這些聲明中表達或暗示的結果、業績、前景和機會存在重大差異。

These risks and uncertainties include but are not limited to those factors identified on slide 2 of today's slide presentation in our Form 10-Q for the quarter end of June 30, 2025 and other filings with the Securities and Exchange Commission.

這些風險和不確定性包括但不限於我們 2025 年 6 月 30 日季度末的 10-Q 表今天幻燈片演示的第 2 張幻燈片中以及向美國證券交易委員會提交的其他文件中確定的因素。

Except as expressly required by the securities laws, the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events, developments, or change circumstances or for any other reason. In addition, it is especially important to review the presentation and today's remarks in conjunction with the GAAP references in the financial statements. With that, I would like to turn the call over to Bob.

除證券法明確要求外，本公司不承擔更新這些因素或任何前瞻性陳述以反映未來事件、發展或變更情況或任何其他原因的義務。此外，結合財務報表中的 GAAP 參考來審查該陳述和今天的評論尤其重要。說完這些，我想把電話轉給鮑伯。

Thank you, Anthony, and thanks to everyone for joining us this morning. Today is second quarter results and the recent successful completion of commissioning of our first GAC line at Red River are key achievements in the continuing transformation of Arq to a sustainably profitable environmental technology company.

謝謝你，安東尼，也謝謝大家今天早上加入我們。今天公佈的是第二季的業績，最近我們在紅河的第一條 GAC 生產線的調試成功完成，這是 Arq 繼續轉型為可持續盈利的環境技術公司的關鍵成就。

I'm extremely pleased to confirm that we have achieved a major milestone with the recent commissioning of our first GAC line, which is now beginning its ramp up towards nameplate capacity of 25 million pounds, which is anticipated within six months. We made our first granular activated carbon sales ahead of what we consider completion of commissioning, validating both market demand and product quality.

我非常高興地確認，隨著我們第一條 GAC 生產線的近期投產，我們已經取得了一個重要的里程碑，該生產線目前正開始向 2500 萬磅的額定產能邁進，預計在六個月內實現。我們在調試完成之前就完成了第一批顆粒活性碳的銷售，並驗證了市場需求和產品品質。

While GAC is certainly our growth engine, we delivered another solid quarter from our foundational path business. Despite Q2 typically being a shoulder quarter, we delivered revenue of $29 million with higher volumes than the previous year combined with ASP growth. We narrowly missed our ninth straight quarter of double-digit year-over-year price growth. However, delivering a strong 9% increase in our ASP is still an outstanding result.

雖然廣汽無疑是我們的成長引擎，但我們的基礎路徑業務又取得了穩健的季度業績。儘管第二季通常與上一季持平，但我們仍實現了 2,900 萬美元的收入，銷量高於前一年，平均售價也實現了成長。我們差一點就實現了連續第九個季度兩位數的年比價格成長。然而，我們的平均銷售價格強勁增長 9% 仍然是出色的成績。

We achieved our fifth consecutive quarter of positive adjusted EBITDA, which also represented an increase of more than 3 times as compared to the same quarter last year. Our results are further confirmation that the foundational path business is well and truly turned around. The story remains consistent. Our pack business continues a successful turnaround while we maintain focus on further optimization.

我們連續第五個季度實現了調整後EBITDA為正，與去年同期相比成長了3倍多。我們的結果進一步證實，基礎路徑業務確實已經好轉。故事情節保持一致。我們的包裝業務持續成功轉虧為盈，同時我們繼續專注於進一步優化。

We've identified additional opportunities to reduce both operational and corporate costs, which combined with our steady ASP improvements should continue to drive enhanced financial performance. With the successful commissioning of our first GAC line, we are adding a higher growth, higher margin business which we expect to further enhance profitability.

我們已經發現了降低營運和企業成本的更多機會，再加上我們穩步提高的平均售價，這將繼續推動財務表現的提升。隨著第一條 GAC 生產線的成功投產，我們增加了一項成長更快、利潤更高的業務，預計將進一步提高獲利能力。

Our pack business remains robust with continued positive pricing momentum and strong demand across both existing and new applications. A key driver of our ASP improvement has been our strategic diversification of customers and end markets. In volume terms, we have reduced our exposure to the mercury emissions market to under 40% of volumes as of the first half of 2025.

我們的包裝業務保持強勁，價格持續保持積極勢頭，現有和新應用的需求強勁。我們平均售價提高的一個關鍵驅動力是客戶和終端市場的策略多元化。從數量上看，截至 2025 年上半年，我們已將汞排放市場的曝險減少到 40% 以下。

While mercury-related applications are an important component of our pack business, their impact on our financial performance has diminished even further than this percentage suggests. Accessing new markets for our powdered activated carbon and expanding into granular activated carbon improves our margins, our overall financial performance, and lessens our exposure to any one particular market sector.

雖然與汞相關的應用是我們包裝業務的重要組成部分，但它們對我們財務表現的影響甚至比這個百分比所顯示的還要小。為我們的粉狀活性碳開拓新市場並擴展到顆粒活性碳，可以提高我們的利潤率和整體財務業績，並減少我們對任何一個特定市場領域的曝險。

Meanwhile, the granular activated carbon market continues to show exceptional strength. We're seeing persistent supply shortages with minimal new capacity entering the market against the backdrop of steady 3% to 5% annual growth from existing demand drivers. And as a reminder, this growth in demand does not take into account PFAS-related requirements and demand.

同時，顆粒活性碳市場持續表現出強勁勢頭。我們看到持續的供應短缺，在現有需求驅動因素的年增長率穩定在 3% 至 5% 的背景下，進入市場的新產能卻很少。需要提醒的是，這種需求成長並未考慮到與 PFAS 相關的要求和需求。

When we factor in the expected impact of EPA regulatory changes, which could add 3 to 5 times today's demand, the growth opportunity becomes even more compelling. While some investors have recently expressed confusion on the implementation timing, two points are clear. First, competitors show no material supply response, as new supply typically takes three to four years to develop. And second, customers are lacking in supply early ahead of further expected constraints.

當我們考慮到 EPA 監管變化的預期影響時，這可能會使當前的需求增加 3 到 5 倍，成長機會變得更加引人注目。儘管一些投資者最近對實施時間表示困惑，但有兩點是明確的。首先，競爭對手沒有表現出材料供應反應，因為新供應通常需要三到四年的時間來開發。其次，在預期的進一步限制出現之前，客戶早期就已經缺乏供應。

Beyond water treatment, additional demand drivers like renewable natural gas could further accelerate market growth.

除了水處理之外，再生天然氣等其他需求驅動因素也可能進一步加速市場成長。

Currently, we estimate that RNG applications consume approximately 45 million pounds of granular activated carbon annually, with the GAC being used to scrub carbon dioxide, hydrogen sulfide, nitrogen, and other contaminants before the gas can enter the grid.

目前，我們估計 RNG 應用每年消耗約 4500 萬磅顆粒活性炭，其中 GAC 用於在氣體進入管網之前清除二氧化碳、硫化氫、氮和其他污染物。

With total US RNG production currently estimated to be around 600 million cubic feet per day, that would indicate that every 100 million cubic feet per day of incremental RNG growth would require nearly 8 million additional pounds of granular activated carbon.

目前美國 RNG 總產量估計約為每天 6 億立方英尺，這意味著 RNG 產量每增加 1 億立方英尺，就需要額外近 800 萬磅的顆粒活性碳。

With industry projections suggesting RNG could grow 2 to 10 times by 2030, this represents potential incremental demand of 45 to 400 million pounds directly coinciding with the anticipated spike in PFAS-related demand.

產業預測表明，到 2030 年，RNG 可能會成長 2 至 10 倍，這意味著潛在的增量需求為 4,500 萬至 4 億磅，與預期的 PFAS 相關需求激增直接相關。

With that said, I'm proud to report that we've already sold initial phase one GAC product during the third quarter to RNG customers as part of the trials mentioned during our previous earnings call in May. This positions us well to access this attractive high growth market while still serving PFAS applications.

話雖如此，我很自豪地報告，作為我們 5 月上次財報電話會議上提到的試驗的一部分，我們已經在第三季度向 RNG 客戶銷售了初始第一階段的 GAC 產品。這使得我們能夠很好地進入這個有吸引力的高成長市場，同時仍然服務於 PFAS 應用。

In summary, the overall market remains tight and competitive, creating favorable conditions for both demand and pricing.

綜上所述，整體市場仍保持緊張和競爭態勢，為需求和定價創造了有利條件。

Turning now to what is perhaps one of the most important operational developments since I became CEO, the successful commissioning of our first 25-million pound GAC line at Red River, I say one of the most important operational developments, not the most important, because I do not want to understate the team's achievements in turning around our foundational path business.

現在來談談自我擔任執行長以來最重要的營運發展之一，即在紅河成功調試我們第一條耗資 2500 萬英鎊的 GAC 生產線，我說這是最重要的營運發展之一，但不是最重要的，因為我不想低估團隊在扭轉我們的基礎路徑業務方面所取得的成就。

These achievements reflect our team's remarkable dedication to finding solutions, adapting to unexpected challenges, and continuing to optimize our existing business while ultimately delivering a successfully commissioned plant.

這些成就體現了我們團隊致力於尋找解決方案、適應意外挑戰以及繼續優化現有業務並最終交付成功投產的工廠的非凡奉獻精神。

However, we only took a short pause to celebrate before focusing on our next task, ramping up production toward nameplate capacity. The extended commissioning period allowed us to address various fine points and minor issues in parallel, which we believe may accelerate our ramp up timeline. Nevertheless, we maintain our previous six months guidance out of prudence.

然而，我們只是短暫地慶祝了一下，然後就集中精力完成下一個任務，即提高產量以達到額定產能。延長的調試期使我們能夠同時解決各種細節和小問題，我們相信這可能會加快我們的提升時間表。儘管如此，出於謹慎考慮，我們仍維持先前六個月的指導。

The lessons learned during construction and commissioning have positioned us exceptionally well to plan future expansions. I'm pleased to share that our current goal is to make the final investment decision on a second line prior to the end of 2025. To be clear, this is a goal, not formal guidance.

建設和調試期間獲得的經驗教訓為我們規劃未來的擴展提供了極佳的基礎。我很高興地告訴大家，我們目前的目標是在 2025 年底前對第二條生產線做出最終投資決定。需要明確的是，這是一個目標，而不是正式的指導。

The criteria for this decision remained unchanged, achieving smooth operational performance from phase one, securing customer demand for incremental capacity, and establishing a clear path to financing. While delivering all this within four to five months may be challenging, the compelling GAC market opportunity and our potential role within it make it logical to add capacity as quickly and prudently as possible.

這項決定的標準保持不變，即從第一階段開始實現平穩的營運表現，確保客戶對增量容量的需求，並建立清晰的融資途徑。雖然在四到五個月內實現所有這些目標可能具有挑戰性，但引人注目的 GAC 市場機會和我們在其中的潛在作用使得盡快、謹慎地增加產能成為合理之舉。

That said, we will not run before we can walk. Our operational team remains singularly focused on a successful ramp up of phase one to nameplate capacity of 25 million pounds and potentially higher as previously discussed.

話雖如此，我們不會還沒學會走就跑。我們的營運團隊仍專注於成功將第一階段的產能提升至 2500 萬磅的標稱產能，甚至可能更高，正如之前所討論的那樣。

We anticipate completing negotiations for additional contracts to fill the remaining phase one capacity in the coming months as customer trial results are finalized. Many of our customers have requirements far exceeding what they've currently contracted with us.

隨著客戶試驗結果最終確定，我們預計將在未來幾個月內完成額外合約的談判，以填補第一階段剩餘的產能。我們的許多客戶的要求遠遠超出了他們目前與我們簽訂的合約。

Successful execution of phase one will enable us to capture a greater share of their total demand while attracting new customers who wanted proof of delivery before finalizing discussions. As these elements fall into place, we believe we can execute our second line using an updated construction plan and enhanced design aided by phase one lessons learned and backed by a solid order book.

第一階段的成功執行將使我們能夠佔據其總需求的更大份額，同時吸引那些希望在最終討論之前獲得交貨證明的新客戶。隨著這些要素到位，我們相信，我們可以使用更新的施工計劃和增強的設計，借助第一階段的經驗教訓，並以堅實的訂單為後盾，來實施我們的第二條生產線。

With these fundamentals in place, securing credit financing for an identical growth stage should be achievable. As a major shareholder and someone who is fully aligned with shareholders, my preference remains to issue no further equity, and I currently see no reason why that would need to change.

有了這些基本面，獲得相同成長階段的信貸融資應該是可以實現的。作為大股東和與股東完全一致的人，我仍然傾向於不再發行股票，目前我認為沒有理由改變這一點。

Moving on to the regulatory environment, despite broader market uncertainty, the current administration has been favorable for our business. As the only fully integrated domestic producers selling predominantly to US customers, tariff issues have had limited direct impact on our operations and finances.

談到監管環境，儘管市場存在更大的不確定性，但現任政府對我們的業務有利。作為唯一一家主要向美國客戶銷售產品的完全一體化國內生產商，關稅問題對我們的營運和財務的直接影響有限。

While the EPA suggested delay info PFAST regulation implementation caused some investor concern. We view it as a pragmatic approach. My recent discussions with EPA officials revealed both their and our concern about supply meeting demand. The potential extension from 2029 to 2031 therefore should not be seen as an environmental policy delusion, but rather a realistic acknowledgement that maintaining deadlines without sufficient GAC supply or other controls would be impractical. You cannot solve a problem without adequate tools. It would be like playing hockey without the right padding or equipment.

雖然美國環保署建議延後實施 PFAST 法規，但這引起了一些投資者的擔憂。我們認為這是一種務實的方法。我最近與環保署官員的討論表明，他們和我們都擔心供應無法滿足需求。因此，從 2029 年到 2031 年的潛在延長不應被視為環境政策的妄想，而應被視為一種現實的認識，即在沒有足夠的 GAC 供應或其他控制措施的情況下維持最後期限是不切實際的。如果沒有足夠的工具，你就無法解決問題。這就像在沒有合適的護墊或裝備的情況下打曲棍球一樣。

The EPA's commitment to ensuring Americans have the cleanest air, land, and water aligned closely with our mission, and I firmly believe the administration remains committed to pragmatic environmental regulations. While our business doesn't require further regulatory changes to succeed, any such changes would only strengthen our position.

美國環保署致力於確保美國人擁有最乾淨的空氣、土地和水，這與我們的使命密切相關，我堅信政府仍致力於務實的環境法規。雖然我們的業務不需要進一步的監管變化就能取得成功，但任何此類變化只會加強我們的地位。

Separately, we continue working closely with the Department of Energy on critical elements, rare earth minerals, and synthetic graphite, all strategic priorities for the current administration. While commercial development of these products isn't near term, we're actively exploring potential federal public-private partnerships to advance these efforts.

另外，我們繼續與能源部在關鍵元素、稀土礦物和合成石墨方面密切合作，這些都是本屆政府的戰略重點。雖然這些產品的商業化開發還不是短期內的事，但我們正在積極探索潛在的聯邦公私合作夥伴關係來推進這些努力。

On asphalt emotion potential, we believe using our carbon feedstock as a blending component to extend free saw durability, increase hardness, and maintaining color as a significant potential future source of revenue. We are currently engaged in a testing program with a leading US asphalt company.

關於瀝青情感潛力，我們相信使用我們的碳原料作為混合成分來延長免費鋸子的耐用性，增加硬度並保持顏色是未來重要的潛在收入來源。我們目前正在與美國一家領先的瀝青公司合作進行測試計畫。

With that, I'll now turn it over to Jay for a detailed financial review.

有了這些，我現在將把工作交給傑伊進行詳細的財務審查。

Thanks, Bob, and thanks everyone for joining us today. Arq continued to deliver strong financial results during the second quarter, with revenue growing 13% year-over-year to $29 million. This continues to be driven largely by enhanced contract terms, including 9% growth on average selling price and an increase in volumes. Our gross margin in the quarter was approximately 33%, which is slightly higher than the second quarter of 2024. As Bob mentioned, the turnaround of the pack business through the combined effort of the entire Arq team has been achieved, evidenced by the improved profitability and volume growth.

謝謝，鮑勃，也謝謝大家今天的參加。Arq 在第二季繼續取得強勁的財務業績，營收年增 13%，達到 2,900 萬美元。這在很大程度上仍然受到合約條款增強的推動，包括平均售價成長 9% 和銷量增加。本季我們的毛利率約為 33%，略高於 2024 年第二季。正如鮑勃所提到的，透過整個 Arq 團隊的共同努力，包裝業務已經實現扭虧為盈，盈利能力的提高和銷量的增長就是明證。

As we discussed in our last quarter call, we expected to continue to work towards commissioning of our new GAC line throughout Q2. We're excited about the recent announcement of that commissioning. We did, however, incur approximately $1.9 million of cost associated with the pre-production feedstock using the commissioning of our GAC line.

正如我們在上個季度電話會議上所討論的那樣，我們預計將在第二季度繼續致力於新 GAC 生產線的調試。我們對最近宣布的這項委託感到非常興奮。然而，我們在使用 GAC 生產線進行預生產時確實花費了約 190 萬美元的成本。

We generated positive adjusted EBITDA of approximately $3.7 million compared to adjusted EBITDA of $1.1 million in the prior year period. I would note that consistent with many market participants, we have added back stock-based compensation in Q2 2025 as a part of our adjusted EBITDA calculation and revised the Q2 2024 adjusted EBITDA calculation for comparability.

我們產生的調整後 EBITDA 約為 370 萬美元，而去年同期的調整後 EBITDA 為 110 萬美元。我想指出的是，與許多市場參與者一致，我們在 2025 年第二季度將股票薪酬作為調整後 EBITDA 計算的一部分添加回來，並修改了 2024 年第二季度調整後 EBITDA 計算以便進行比較。

We incurred a net loss of $2.1 million versus a net loss of $2 million in Q2 of 2024, primarily attributable to the cost incurred in pre-production feedstock used in the commissioning of our GHC line.

我們遭受了 210 萬美元的淨虧損，而 2024 年第二季的淨虧損為 200 萬美元，這主要歸因於 GHC 生產線調試中使用的預生產原料所產生的成本。

100% of our packed sales contracts are now net contributors in 2025. Focusing our efforts on profitability over volume led to this milestone, a significant achievement in our pack portfolio, given that 24% of volumes were loss making as of December 2022.

到 2025 年，我們的打包銷售合約 100% 都將成為淨貢獻者。我們將精力集中在盈利能力而非銷量上，從而實現了這一里程碑，這是我們包裝產品組合的一項重大成就，因為截至 2022 年 12 月，24% 的銷量處於虧損狀態。

Selling general administrative expenses total of $5.9 million reflecting a reduction of approximately 16% versus the prior year period. This reduction was primarily driven by a reduction in payroll and benefits as well as general administrative expenses. Research and development costs for the second quarter increased 190% or $1.8 million compared to Q2 '24. Much of this increase is primarily attributable to the commissioning of the GAC line we discussed earlier.

銷售一般管理費用總計 590 萬美元，比去年同期減少約 16%。減少的主要原因是工資和福利以及一般行政費用的減少。與 24 年第二季相比，第二季的研發成本增加了 190%，即 180 萬美元。這一成長主要歸功於我們之前討論過的 GAC 生產線的投入使用。

Overall, our performance in Q2 2025 demonstrates our ability to operate our pack business in a way that contributes positively to our economic position in a truly sustainable manner while further enabling us to pursue and execute on high growth and high-margin opportunities within our expanding GAC business. We remain focused on enhancing the profitability of our packed business even further and believe that it is now genuinely cash generative on an annualized basis, as Bob noted, this pack legacy business turnaround secures our financial business onto which we are adding the higher growth GAC opportunity.

總體而言，我們在 2025 年第二季度的業績證明了我們能夠以真正可持續的方式運營我們的包裝業務，從而對我們的經濟地位做出積極貢獻，同時進一步使我們能夠在不斷擴大的 GAC 業務中追求和執行高增長和高利潤的機會。我們仍然專注於進一步提高包裝業務的盈利能力，並相信它現在在年度基礎上真正產生現金，正如鮑勃指出的那樣，這種包裝遺留業務的轉變確保了我們的金融業務，我們正在為其添加更高增長的 GAC 機會。

To discuss the impacts of the quarter on our balance sheet, let me turn it over to our Chief Accounting Officer, Stacia Hansen.

為了討論本季對我們資產負債表的影響，請容許我將問題交給我們的首席會計官 Stacia Hansen。

Thanks, Jay. Turning to the balance sheet, we ended the second quarter with total cash of $15 million of which approximately $7 million is unrestricted. The change versus the end of the year was driven primarily by trailing CapEx spend at Red River relating to the GAC line and build up of Arq wet cake inventory and critical spare parts.

謝謝，傑伊。談到資產負債表，我們第二季結束時的總現金為 1500 萬美元，其中約 700 萬美元是不受限制的。與年底相比的變化主要是由於 Red River 與 GAC 生產線相關的資本支出落後以及 Arq 濕餅庫存和關鍵備件的增加。

Today, we are reiterating our 2025 CapEx forecast of between $8 million and $12 million. We continue to expect to fund our operating and CapEx needs via our existing cash, cash generation, and ongoing cost reduction initiatives. As discussed in our first-quarter results during the second quarter, we amended our agreement with mid-cap to provide for additional borrowings under that facility if needed.

今天，我們重申 2025 年資本支出預測，即 800 萬美元至 1,200 萬美元之間。我們將繼續期望透過現有現金、現金產生和持續的成本削減措施來滿足我們的營運和資本支出需求。正如我們在第二季的第一季業績中所討論的那樣，我們修改了與中型企業的協議，以便在需要時根據該協議提供額外借款。

With that, I will turn things back to Bob.

就這樣，我將把事情交還給鮑伯。

Thanks Jay and Station. Before we turn to questions, I'd like to leave you with three key takeaways. First, our pack business continues to thrive, and we delivered another strong quarter. With the impact of ongoing commissioning related costs in Q2, our EBITDA would have been even better. I take great pride in our team, not only delivering a fifth consecutive quarter of positive adjusted EBITDA, but also a more than 3 times improvement versus the second quarter of 2024.

感謝 Jay 和 Station。在我們開始提問之前，我想先給大家留下三個關鍵要點。首先，我們的包裝業務繼續蓬勃發展，我們又實現了一個強勁的季度。受第二季持續調試相關成本的影響，我們的 EBITDA 將會更好。我為我們的團隊感到非常自豪，不僅連續第五個季度實現了正向調整後 EBITDA，而且與 2024 年第二季相比成長了 3 倍以上。

We remain focused on further enhancing the existing pack business and believe the current annualized performance is not only sustainable but has room for further improvement.

我們仍專注於進一步加強現有的包裝業務，並相信目前的年化業績不僅可持續，而且還有進一步提升的空間。

Second, The successful commissioning of our first GAC production phase at Red River marks a transformative milestone. This achievement enables us to begin ramping up toward nameplate capacity over the next six months while continuing to refine our processes to maximize margins and value.

其次，我們在紅河的第一個 GAC 生產階段的成功投產標誌著一個變革性的里程碑。這項成就使我們能夠在未來六個月內開始提高額定產能，同時繼續改善我們的流程以最大化利潤和價值。

Third, alongside phase one ramp up, we're actively developing detailed plans for phase two, which would add another 25 million pounds of granular activated carbon capacity at Red River. The second GAC line is already fully permitted at Red River. Our existing feedstock capacity at Corbin is sufficient for our phase two needs. Therefore, no additional permitting or capital investment is needed at Corbyn.

第三，在進行第一階段產能提升的同時，我們正在積極制定第二階段的詳細計劃，這將使紅河的顆粒活性碳產能再增加 2,500 萬磅。紅河 (Red River) 的第二條 GAC 生產線已獲得全面許可。Corbin 現有的原料產能足以滿足我們第二階段的需求。因此，Corbyn 不需要額外的許可或資本投資。

In summary, our foundational pack business is delivering solid results. Our growth-oriented GAC business has achieved its most important milestone to date, and we're actively planning the next exciting stage of growth. We look forward to updating you on our progress across all elements of this strategy. With that, I'll hand it back to our operator to open for questions.

總而言之，我們的基礎包裝業務正取得穩健的表現。我們以成長為導向的廣汽業務已經實現了迄今為止最重要的里程碑，我們正在積極規劃下一個令人興奮的成長階段。我們期待向您通報該策略各要素的進展。說完這些，我將把它交還給我們的操作員來回答問題。

(Operator Instructions) Gerry Sweeney, Roth Capital Partners.

（操作員指示）Gerry Sweeney，Roth Capital Partners。

Good morning, Bob station team. Thanks for taking my call.

早安，鮑伯站團隊。謝謝您接聽我的電話。

Happy to do it, Jerry.

很高興這麼做，傑瑞。

Red River, I figured we'd start there. Obviously commissioning process is underway. Can you maybe elaborate a little bit on the key milestones that you're going to go through that process and I think we've spoken earlier that in the commissioning process, you tweets, I think, for lack of a better word, part of the process around the heating, et cetera. And you had to bring in some, permanent equipment. So I just want to see how the next six months sort of developed from your perspective.

紅河，我想我們應該從那裡開始。顯然，調試過程正在進行中。您能否詳細說明您將要經歷的關鍵里程碑，我想我們之前已經談到過，在調試過程中，您發的推文，我想，由於缺乏更好的詞彙，部分過程圍繞著加熱等等。而且你必須引進一些永久性設備。所以我只是想從你的角度看看接下來的六個月會如何發展。

Sure, as mentioned in our remarks, the operations team is going to be singularly focused on getting up the full 25 million nameplate capacity or higher as quickly as possible. That's why we've given that six months guidance. We identified as part of the process. The initial step was to complete commissioning to get into commercial production to initiate sales, which we've done.

當然，正如我們在評論中提到的那樣，營運團隊將專注於盡快達到 2500 萬或更高的額定產能。這就是我們給出六個月指導的原因。我們將其視為該過程的一部分。第一步是完成調試，進入商業生產並開始銷售，我們已經做到了。

During that process, we also recognized additional tweaks or areas where we can improve the operations that will improve from our current commercial production rates and get us up to or close to that 25 million pounds or above. This process isn't going to be linear in that it's going to be in increments or you know in jumps as you will, as we identify things. And you know the margin we're getting now based on current production levels versus what we'll get two months from now or when we're at full production rates will be different. So it's a lot of little things that, it takes a lot of pennies and nickels to make a dollar. It's the same way in getting up to full production.

在此過程中，我們也認識到可以進行的其他調整或改進領域，這些調整或改進將提高我們目前的商業生產力，使我們達到或接近 2500 萬磅或以上。這個過程並不是線性的，而是隨著我們辨識事物而逐漸增加或跳躍的。你知道，我們現在根據目前生產水準所獲得的利潤與兩個月後或當我們達到滿載生產力時所獲得的利潤是不同的。所以，要賺一美元需要很多小事，需要花很多小錢。實現全面生產也是同樣的方法。

Got it. And then switching gears, well, actually we'll stay with the red river. Well, let me think here. Phase two, line two, we in the past we've discussed costs, but you know with permitting not needed, maybe some design improvements after line one. What would be the cost per pounder or total cost to add line two?

知道了。然後換個話題，嗯，其實我們會繼續談論紅河。好吧，讓我想想。第二階段，第二條線路，我們過去討論過成本，但你知道不需要許可，也許在第一條線路之後會進行一些設計改進。每磅增加第二條生產線的成本或總成本是多少？

That's one of the things that we're working on and we'll have finalized in the next four to five months, as you mentioned. There are definitely going to be some design enhancements overlying one that will both shorten the process and lower the cost on that. What we're doing now is looking at all those enhancements, looking at the lead time. Taking into account what the current prices are versus when we made the financial investment decision on line one, and that's part of the process that we'll be undertaking and reviewing over the next four to five months.

正如您所說，這是我們正在努力的事情之一，我們將在未來四到五個月內完成。肯定會有一些設計改進，既可以縮短流程，又可以降低成本。我們現在正在做的是研究所有這些增強功能，並研究交付週期。考慮到當前價格與我們在第一行做出財務投資決策時的價格相比如何，這是我們將在未來四到五個月內進行和審查的流程的一部分。

I'm sure, I'm confident saying it's not going to be more than the current line and I hopefully and would expect it to be less.

我確信，我可以自信地說它不會超過目前的水平，我希望並且預計它會更低。

Got it. And then, and markets very well versed on the water market. We understand that our context, but on the RNG side, what is the timeline to moving from I guess initial sales for testing to contracts and the other part of the question is what's the balance between Water-related product and potentially RNG product in terms of maybe percentage of sales or optimal percentage of sales.

知道了。然後，對水市場非常熟悉。我們了解我們的背景，但在 RNG 方面，從最初的測試銷售到合約的時間表是什麼，問題的另一部分是，就銷售百分比或最佳銷售百分比而言，與水相關的產品和潛在的 RNG 產品之間的平衡是什麼。

Sure, a couple of things. The answer, not to be obtuse on the timing is it varies anywhere really from one to six to eight months. It depends upon the customer. It depends upon their testing, final testing requirements. I think the key item there is that this final completion of in-situ testing is the final element to finalize the negotiations. A we've essentially agreed on the details. We've agreed on price. We've discussed potential volumes.

當然，有幾件事。答案是，時間確實會有所不同，從一個月到六個月到八個月不等。這取決於客戶。這取決於他們的測試和最終測試要求。我認為關鍵在於最終完成現場測試是結束談判的最後一項要素。A 我們基本上已經就細節達成一致。我們已經就價格達成協議。我們已經討論了潛在的數量。

They just want confirmation, they being the RNG customers that it works within in the actual field testing, not just lab or, other types of testing. We're very confident in that, as are our potential customers in terms of optimal customer mix, again, it's a balance while The RNG market has higher pricing and higher margins than the water market. You don't want to put all your eggs in one basket. You want to have a portfolio of risk across different industries, so you're not held captive to one particular industry, and I think that portfolio approach is in the best way in the best interests of shareholders. So it's going to be a mix between water, RNG, and other industries.

他們只是想要確認，作為 RNG 客戶，他們在實際現場測試中能夠正常工作，而不僅僅是在實驗室或其他類型的測試中。我們對此非常有信心，我們的潛在客戶在最佳客戶組合方面也是如此，再次強調，這是一種平衡，而 RNG 市場比水市場具有更高的定價和更高的利潤率。你不想把所有的雞蛋放在一個籃子裡。您希望擁有一個涵蓋不同行業的風險組合，這樣您就不會局限於某一特定行業，而且我認為投資組合方法最符合股東的利益。因此它將是水、RNG 和其他產業的混合體。

Got it. And then final question for me, and I'll jump back in line. I know on the adjusted EBITDA you added back, I think some product costs that were sort of embedded, I guess probably in R&D and maybe a little bit SG&A, but gross margins, it's reading the press release, it sounded like there was a little bit of cost associated with the commercialization and the gross margins as well. I'm not sure if that's maybe some overtime and people working, et cetera.

知道了。這是我的最後一個問題，然後我會重新排隊。我知道您添加的調整後 EBITDA 中，我認為有些產品成本是嵌入的，我猜可能是在研發方面，也許還有一點銷售、一般及行政費用，但毛利率，從新聞稿上看，聽起來好像有一點與商業化和毛利率相關的成本。我不確定這是否意味著加班和人員工作等等。

But What was the impact on the gross margins from the commissioning aspect?

但從調試方面來看，這對毛利率有什麼影響？

We moved, the $1.9 million was originally in cost of sales. We moved that into R&D expense, so the $1.9 million was reclassified to R&D associated with the pre-production inventory that we were running through. There's probably some additional cost. I think Bob alluded to that as well in his remarks, that is included in cost of sales. It's hard to To say how much that is, we, it wasn't significant enough that that we needed to go ahead and make an adjustment for it, but we think margins, are probably above 33% for the pack business on a go forward basis, but and we anticipate because we didn't commission until, early August, so we probably got another month of that pre-production inventory running through that that will flow through in the third quarter in July as well.

我們搬家了，190萬美元原本是銷售成本。我們將其轉入研發費用，因此 190 萬美元被重新歸類為與我們正在進行的預生產庫存相關的研發。可能會有一些額外的費用。我認為鮑勃在他的評論中也提到了這一點，這包含在銷售成本中。很難說具體金額是多少，我們認為這還不夠大，不足以讓我們繼續進行調整，但我們認為，未來包裝業務的利潤率可能超過 33%，但我們預計，因為我們直到 8 月初才開始投入使用，所以我們可能還需要一個月的預生產庫存，這些庫存也會在 7 月份的第三季度用完。

Got it. So there's some leftover pre-production inventory, on the course bars side. We're probably, I get it, there's probably some labor. There's some.

知道了。因此，在課程條方面還剩有一些預生產庫存。我明白，我們可能有一些勞動力。有一些。

Yeah, there, there's that that's, yeah, exactly.

是的，那裡，那裡是那樣，是的，沒錯。

Yeah, that is, that is higher ASPs and we're also going in the third quarter where we have volume of absorption of overhead. That's right. That's right. Okay, great. Well, congrats on commissioning, as you guys know, I think the water and market is huge for GAC and obviously RNT is going to be added to it, so excited for the next couple of years. So thanks.

是的，也就是說，平均售價更高，而且我們在第三季也會吸收大量的間接費用。這是正確的。這是正確的。好的，太好了。好吧，祝賀調試成功，正如你們所知，我認為水和市場對 GAC 來說非常重要，而且顯然 RNT 也會加入其中，因此對未來幾年充滿期待。所以謝謝。

So are we. Thank you, Jerry.

我們也是。謝謝你，傑瑞。

Aaron Spychalla, Craig Hallum.

亞倫·斯皮查拉、克雷格·哈勒姆。

Yeah, good morning, Bob and Jay and Stasha. Thanks for taking the questions.

是的，早安，鮑伯、傑伊和斯塔莎。感謝您回答這些問題。

Maybe first on the pack progress, can you just talk about the opportunity for further improvements there, on ASP or kind of market diversification in the coming years, just where, margins can go in that business.

首先，關於包裝方面的進展，您能否談談未來幾年在平均銷售價格 (ASP) 或市場多樣化方面進一步改進的機會，以及該業務的利潤率可以提高到哪裡。

Yeah, no, a couple of things. One, there's a possibility as we continue to lessen reliance on the mercury market, as we mentioned during our remarks, and we expand into higher other markets which are higher priced and have higher margins as it relates to that. So while we've averaged over 16% increase in our average. Selling price over the last eight quarters at some point that has to abate, we saw we came just short of double digits again this quarter, but 9% is still extremely strong, and we still see momentum and have visibility towards increasing our average selling price as we expand into the newer markets.

是的，不，有幾件事。首先，正如我們在評論中提到的那樣，隨著我們繼續減少對汞市場的依賴，我們將擴展到價格更高、利潤率更高的其他市場。因此，我們的平均增幅超過了 16%。過去八個季度的銷售價格在某個時候必須下降，我們看到本季的銷售價格再次接近兩位數，但 9% 仍然非常強勁，我們仍然看到成長勢頭，並且隨著我們擴展到新市場，我們的平均銷售價格有望提高。

All right, thanks for that. And then, I appreciate all the color on the RNG sounds like a really good opportunity. Can you just, any preliminary results as as you've kind of started that in situ testing just on on how you know your your product stacks up, any feedback there that you might have received already?

好的，謝謝。然後，我很欣賞 RNG 上的所有色彩，這聽起來是一個非常好的機會。您能否透露一下，當您開始進行現場測試時，關於您如何了解您的產品堆疊情況的任何初步結果，以及您可能已經收到的任何回饋？

Based on both the initial phases of testing, as they say, there have been at least two, and in some instances three phases of testing before the in-situ testing. Both ourselves and the potential customers are extremely pleased. The initial indications show that our product performs significantly better than the competition, which is great, but we also want make sure we get paid for that superior performance as it relates to that. So we're quite encouraged, and that's one of the reasons we've held back contracting capacity. We could contract all of our remaining capacity, as I've said before, right now in the water market.

根據他們所說的初始測試階段，在現場測試之前至少已經進行過兩個階段的測試，在某些情況下甚至有三個階段的測試。我們自己和潛在客戶都非常高興。初步跡象表明，我們的產品性能明顯優於競爭對手，這很好，但我們也希望確保因這種卓越的性能而獲得報酬。所以我們感到非常鼓舞，這也是我們抑制承包能力的原因之一。正如我之前所說，我們現在可以在水市場上承包所有剩餘產能。

We'd like to hold it back and have held it back for the RNG market because of its higher pricing and higher margin and Another just a digression on contract pricing, I consistently talk about the market for granular activated carbon being under supplied with excess demand. The best indicator or evidence of that is that the contracts we entered into a year ago or a year ago or more if we entered into those today, would be at higher pricing.

我們希望將其保留下來，並且已經將其保留在 RNG 市場，因為它的定價更高，利潤更高，另外，關於合約定價，我一直在談論顆粒活性碳市場供應不足，需求過剩。最好的指標或證據是，我們一年前或一年前甚至更早簽訂的合約（如果我們今天簽訂的話）的價格會更高。

Understood. I will stop there and then turn it over. Thanks for taking the questions.

明白了。我會停在那裡然後把它翻過來。感謝您回答這些問題。

Yeah, thanks Earn.

是的，謝謝 Earn。

Tim Moore, Clear Street.

蒂姆·摩爾，Clear Street。

Thanks and congratulations on that key catalyst for starting the efficient optimized granular activated carbon line, and I like Bob's hockey analogy. Do you expect to possibly squeeze out the 10% to 20% more production, from phase one, and when do you think you might know that, is that more like in October, November time frame before your next earnings call?

感謝並祝賀這項關鍵催化劑成為啟動高效優化顆粒活性碳生產線的關鍵，我喜歡鮑伯的曲棍球比喻。您是否預計從第一階段開始就能將產量提高 10% 到 20%，您認為什麼時候可以知道這一點，是更像在下次財報電話會議之前的 10 月或 11 月嗎？

We definitely have aspirations for producing more than the 25 million pounds. We'll only know that once we get to full name, excuse me, nameplate capacity of 25 million pounds.

我們絕對有志於生產超過 2500 萬英鎊。只有當我們了解全名，對不起，銘牌容量為 2500 萬英鎊時，我們才會知道。

I'm not going to say October. We'll know that in the next six months, as we said, so I'm not going to let myself get boxed in to the October time frame on that, but we still remain confident in the ability to produce more than the nameplate capacity.

我不會說十月。正如我們所說的，我們將在未來六個月內知道這一點，因此我不會讓自己被限制在十月份的時間範圍內，但我們仍然有信心能夠生產出超過額定產能的產品。

Thanks Bob. I like how you mentioned, you're not running before you can walk, and I know this might be premature to ask a bit more about line too phase two, but is the equipment ordering and construction lead time still about 12 months, or do you think it can be quicker because the lessons learned, sourcing best practices, set up optimization? Just wondering, I got to imagine it would be faster than, commissioning what you did for phase one. Just kind of curious on the timeline.

謝謝鮑勃。我喜歡你提到的，你不會還沒學會走就跑，我知道現在詢問第二階段的生產線情況可能為時過早，但設備訂購和施工交付週期是否仍為 12 個月左右，或者你是否認為由於吸取了教訓、採購最佳實踐、設置優化，它可以更快？只是想知道，我想像它會比第一階段的調試更快。只是對時間軸有點好奇。

It sure as heck better be faster than we did for phase one, otherwise we didn't learn anything on that, but I'm confident that the operations team has learned quite a bit. The lead. Time for certain pieces of equipment is lengthy, and when you combine it with, you have to wait to do final installation and construction and commissioning once it's installed, I think roughly a year lead time is good guidance to give people from initiation of the FID to actually beginning commissioning, beginning production.

它肯定比第一階段更快，否則我們就不會學到任何東西，但我相信營運團隊已經學到了很多。領先。某些設備的時間很長，而且當你將它們結合起來時，你必須等待安裝完成後才能進行最終的安裝、施工和調試，我認為大約一年的準備時間是一個很好的指導，可以為人們從啟動 FID 到實際開始調試、開始生產提供指導。

That that's very helpful. And then the only other question I get a lot on, I think you already nipped it in the bud, but I think it would just be helpful for investors, you mentioned really no desire or preference to issue further equity for phase two. So just kind of wondering, it seems like you're highly confident, to use what entirely debt to maybe finance line too, just kind of curious about that.

這非常有幫助。然後我經常被問到的另一個問題是，我認為您已經將其扼殺在萌芽狀態，但我認為這只會對投資者有所幫助，您提到實際上沒有意願或偏好在第二階段發行更多股權。所以我只是有點好奇，看起來你非常有信心，完全使用債務來融資，我只是有點好奇這一點。

Yeah, no, when you look at it, one with the ongoing turnaround in cash flow generation of the pack business, you combine that with the granular activated carbon business, the cash flow we'll get from that the availability we have on our debt facilities and the ability to expand that if needed based on the enhanced cash flow. I just mentioned and then you add the fact that it isn't just spending all that money in one, fell swoop, it's over time, it's incremental. So you know when Jay and I discuss it and along with Station and the rest of the team, we feel very comfortable the ability to finance it out of cash flow, cost cutting initiatives, and debt availability.

是的，不，當你看到它時，一方面，包裝業務的現金流生成正在不斷好轉，另一方面，你將其與顆粒活性炭業務結合起來，我們將從中獲得現金流，我們的債務融資能力以及在增強的現金流基礎上在必要時擴大的能力。我剛才提到，然後你補充說，這不是一下子花光所有錢，而是隨著時間的推移，逐步增加的。所以你知道，當傑伊和我以及 Station 和團隊的其他成員討論這個問題時，我們非常放心能夠透過現金流、成本削減計劃和債務可用性來為其提供資金。

Yeah, I would add that, the debt markets are still pretty wide open, that could change for sure, but once we have the proven story from phase one and are able to show, potential lenders the the profile of that business and we're going to be replicating it, I think it's a pretty easy opportunity.

是的，我想補充一點，債務市場仍然相當開放，這肯定會發生變化，但一旦我們在第一階段獲得了證實，並能夠向潛在貸方展示該業務的概況，我們就會複製它，我認為這是一個相當容易的機會。

Oh, that, that's terrific, Jay and Bob, thanks for adding that color. I think that was an important point. So that's it for my questions.

哦，那太棒了，傑伊和鮑勃，謝謝你們添加了這種顏色。我認為這是一個重要的觀點。這就是我的問題。

Thank you.

謝謝。

(Operator Instructions) Peter Gastreich, Water Tower Research.

（操作員指示）Peter Gastreich，水塔研究。

Thank you. So, good morning, Bob and team. Congratulations on your results and your GAC phase one startup. Also it's great to see that you've already got phase two FID within your, sites for later this year. Just a couple of questions for me on the first one will be on RNG and the second one will be on the asphalt emulsion. Thanks for the color on the RNG market. I'm just sort of curious, so following the big beautiful bill, did you notice a further enhancement of interest from renewable natural gas customers? I understand the demand already looked good before that, but I'm just curious whether there was any noticeable increase after that policy clarity came through for RNG producers.

謝謝。早安，鮑伯和團隊。恭喜您所取得的成果以及 GAC 第一階段的啟動。我也很高興看到您已經在今年稍後在您的站點內獲得了第二階段的 FID。我只想問幾個問題，第一個問題是關於 RNG，第二個問題是關於瀝青乳液。感謝您對 RNG 市場的關注。我只是有點好奇，那麼在這項美麗的法案出台之後，您是否注意到再生天然氣客戶的興趣進一步增強了？我知道在此之前需求就已經很好了，但我只是好奇在針對 RNG 生產商的政策明確之後是否有明顯的增長。

We've seen some, but it's difficult to separate that out from what I would call organic or ongoing versus anything that was stimulated by the big beautiful bill, and if you look at it that one of the things we always TRY and look at is take politics out of the equation on that and that the RNG market fundamentals in and Themselves and as it relates to granular activated carbon are strong. We're strong, and we expect to remain strong irrespective of any potential benefits of the big beautiful bill. So it was an extremely attractive market before the Big Beautiful bill.

我們已經看到了一些，但很難將其與我所說的有機或持續的、受大美麗法案刺激的事物區分開來，如果你看一下，就會發現我們總是嘗試和考慮的事情之一就是將政治因素排除在外，並且 RNG 市場基本面及其本身以及與顆粒活性炭相關的基本面都很強勁。我們很強大，而且無論這項美麗的法案帶來什麼潛在好處，我們都希望繼續保持強大。因此，在《大美麗法案》推出之前，這是一個極具吸引力的市場。

Does it add to it? Yes. Are we counting on that addition? No, because it was already so attractive and had so much potential.

這樣會有幫助嗎？是的。我們是否指望這項補充？不，因為它已經非常有吸引力並且具有很大的潛力。

Okay, great. That makes sense.

好的，太好了。這很有道理。

Thank you. And regarding the asphaltop opportunity, can you talk a bit more about the scale or magnitude of this market opportunity, also, is this a product that is unique to Arq or will you have competition either from that or similar, or a competing product and what kind of time frame before you make a decision on this one.

謝謝。關於瀝青路面機會，您能再多談談這個市場機會的規模或大小，另外，這是 Arq 獨有的產品嗎？或者您是否會面臨來自該產品或類似產品的競爭，或者競爭產品，以及在您對此做出決定之前需要什麼樣的時間框架。

Thank you. So a number of questions embedded in that, but all relating to asphalt motion. I'll see if I can make sure I answer them all.

謝謝。這其中涉及許多問題，但都與瀝青運動有關。我會看看是否能確保回答所有問題。

It is unique to AC in terms of our unique patent protected process of converting bituminous coal waste into what we call Arq wet cake into a feedstock, that the quality of that. The way we formulate that it leads to unique properties that I mentioned which leads to extra durability, less prone to freezet degradation, enhanced color, quicker setting, enhanced hardness.

AC 的獨特之處在於我們獨特的專利保護工藝，將煙煤廢料轉化為我們稱為 Arq 濕餅的原料，並保證其品質。我們制定的方式使其具有我所提到的獨特性能，從而具有額外的耐用性、不易凍融降解、增強顏色、更快凝固、增強硬度。

So it is unique to Arq in terms of the opportunity size. It is quite immense. We're working, as I mentioned in my prepared remarks with the leading US asphalt. Company we're involved in the testing phase right now and that if successful, quite frankly, the asphaltul market could take up all of our current production capacity at Corbin and then some if we wanted to. So it's an enormous opportunity with significant advantages that our unique feedstock product adds to the asphalt market.

因此，就機會規模而言，它是 Arq 所獨有的。它非常巨大。正如我在準備好的演講中提到的那樣，我們正在與美國領先的瀝青公司合作。公司目前正處於測試階段，如果成功的話，坦白說，瀝青市場可能會佔據我們在 Corbin 的所有現有生產能力，如果我們願意的話，還可以佔據一些。因此，我們獨特的原料產品為瀝青市場帶來了巨大的機會和顯著的優勢。

I think that covers all the components, but if not, what did I miss?

我認為這涵蓋了所有組件，但如果沒有，我遺漏了什麼？

You got it.

你明白了。

Thanks very much, Bob, and congratulations again. I'll get back in the future.

非常感謝，鮑勃，再次恭喜你。我以後會回來的。

Thanks. There are no further questions at this time. I would like to turn the floor back over to Bob Rasmus for a closing comment.

謝謝。目前沒有其他問題。我想把發言權交還給鮑伯‧拉斯穆斯 (Bob Rasmus)，請他做最後發言。

Thanks, Sachi. In conclusion, much more has changed in the last few years than just our name and ticker symbol. On the financial side, we have just achieved our fifth consecutive quarter of positive adjusted.

謝謝，Sachi。總而言之，過去幾年發生的變化遠不止於我們的名稱和股票代碼。在財務方面，我們剛剛實現了連續第五個季度的正調整。

Our ASP increased an average of 16% year-over-year over the last 8 quarters. Our pa business is now generating cash on a sustainable ongoing basis, with further improvements expected. We have used that foundational pack business as a low cost vehicle, not just to expand into the high growth, high margin granular activated carbon business, but to fundamentally improve the growth trajectory of our company for many years to come.

過去 8 個季度，我們的平均銷售價格較去年同期成長了 16%。我們的 PA 業務目前正在持續不斷地產生現金，預計還會進一步改善。我們將基礎包裝業務作為一種低成本工具，不僅擴展到高成長、高利潤的顆粒活性碳業務，而且從根本上改善了公司未來多年的成長軌跡。

While we were confident in the strategic decision we made to expand into the GAC market, we're even more confident today. The GAC market continues to see demand well in excess of supply. The best evidence, as I mentioned, is the contracts we entered into last year would be at higher prices if finalized today. We have reached the first critical milestone of that expansion by completing commissioning and entering into commercial production of the first GAC line. We're poised to make the FID on the second 25 million GAC line by year end.

我們對於進軍廣汽市場的策略決策充滿信心，而今天我們更有信心。GAC 市場持續呈現需求遠超過供應的局面。正如我所提到的，最好的證據是，我們去年簽訂的合約如果今天最終確定，價格會更高。我們已完成第一條 GAC 生產線的調試並投入商業生產，達到了此次擴建的第一個關鍵里程碑。我們準備在年底前對第二條 2500 萬 GAC 生產線做出最終決定。

The market has also validated our ongoing transformation. Two years ago, just one analyst covered our stock. Today there are 6. Our market cap has grown more than sixfold in that same period since I became CEO. These results are a testament to the hard work and dedication of our entire team. And while they are impressive, we still see significant opportunities to improve and grow. We appreciate your taking the time and your interest in our, and we look forward to discussing further developments on our next quarterly call.

市場也驗證了我們正在進行的轉型。兩年前，只有一位分析師關注我們的股票。今天有6個。自從我擔任執行長以來，我們的市值在同一時期增長了六倍多。這些成果證明了我們整個團隊的辛勤工作和奉獻精神。儘管這些成績令人印象深刻，但我們仍然看到了巨大的改進和發展機會。感謝您抽出時間並對我們的關注，我們期待在下次季度電話會議上討論進一步的發展。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。