Array Technologies Inc (ARRY) 2021 Q1 法說會逐字稿

Good evening, and welcome to Array Technologies First Quarter 2021 Earnings Conference Call. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A.

晚安，歡迎參加 Array Technologies 2021 年第一季財報電話會議。今天的電話會議將進行錄音，我們已安排 1 小時用於管理層準備發言及問答。

At this time, I'd like to turn the conference over to Cody Mueller, Investor Relations for Array Technologies. Thank you. You may begin.

此刻，我想將會議交給 Array Technologies 投資人關係部的 Cody Mueller。謝謝。您可以開始了。

Good evening, and thank you for joining us on today's conference call to discuss Array Technologies first quarter 2021 results.

晚安，感謝各位參加今天的電話會議，一同討論 Array Technologies 2021 年第一季業績。

During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of other factors discussed in today's earnings press release and the comments made during this conference call or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, arraytechinc.com. We do not undertake any duty to update any forward-looking statements.

在本次電話會議中，管理層將基於目前的預期與假設發表前瞻性陳述，而這些陳述受風險與不確定性影響。若我們的任何關鍵假設不正確，或因其他因素（包括今日財報新聞稿所討論者，以及本次電話會議中所作評論，或我們最近向美國證券交易委員會提交的報告與文件中所述者）影響，實際結果可能與前瞻性陳述存在重大差異。上述資料均可於我們網站 arraytechinc.com 查閱。我們不承擔更新任何前瞻性陳述之義務。

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's first quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures.

今天的簡報亦包含對非 GAAP 財務衡量指標的引用。請參閱公司第一季新聞稿中所載之定義資訊，以及歷史非 GAAP 指標與可比較 GAAP 財務指標之調節表。

With that, let me turn the call over to Jim Fusaro, Array Technologies CEO.

接下來，讓我把電話交給 Array Technologies 執行長 Jim Fusaro。

Thanks, Cody, and good evening, everyone.

謝謝你，Cody，各位晚安。

Thank you for joining our earnings call. In addition to Cody, I'm joined today by Nipul Patel, our Chief Financial Officer; and Jeff Krantz, our Chief Commercial Officer.

感謝各位參加我們的財報電話會議。除了 Cody 之外，今天與我一同出席的還有我們的財務長 Nipul Patel，以及商務長 Jeff Krantz。

I'm going to focus my remarks today on 3 areas: first, how our first quarter results compared to our expectations; second, how we see demand evolving for our products; and third, the current commodity and shipping cost environment, how it impacts Array and the actions we are taking in response. Then I'll turn it over to Nipul for a detailed review of our first quarter results.

我今天的發言將聚焦於三個面向：第一，我們第一季的結果與預期相比如何；第二，我們如何看待產品需求的演變；第三，目前大宗商品與運輸成本環境、其對 Array 的影響，以及我們正在採取的因應措施。之後我會把電話交給 Nipul，對第一季結果進行更詳細的回顧。

Revenues for the first quarter of 2021 were $246 million, which was in line with our expectations. Adjusted EBITDA was $34.5 million, which was slightly below expectations, primarily as a result of higher logistics costs resulting from unexpected increases in inbound freight costs.

2021 年第一季營收為 2.46 億美元，符合我們的預期。調整後 EBITDA 為 3,450 萬美元，略低於預期，主要原因是因進口運費意外上升而導致物流成本增加。

Demand for our products remain strong, with quoting activity at the highest levels we have seen in our history. We believe the superior value that our tracker system delivers is being recognized by a growing number of EPCs, developers and asset owners globally, and is underscored by the up to 4-gigawatt award that we recently received from Primoris, one of the largest solar EPCs in the U.S. as well as the 350 megawatts of awards we received from 9 international customers during the first quarter.

我們產品的需求仍然強勁，報價活動達到我們歷史最高水準。我們相信，我們追日系統所提供的卓越價值正被全球越來越多的 EPC、開發商與資產所有者所認可；這一點也反映在我們近期自 Primoris（美國最大的太陽能 EPC 之一）獲得最高達 4GW 的訂單授予，以及第一季我們自 9 家國際客戶獲得合計 350MW 的訂單授予。

Increasing panel efficiency, falling storage costs and growing regulatory support are expanding the lead that solar has over other conventional generation and other renewables. More than ever before, solar energy is becoming the first choice for new generation. Unfortunately, at the same time as we are seeing record demand for solar, our industry is contending with increases in steel and shipping costs that are unprecedented both in their magnitude and rate of change.

面板效率提升、儲能成本下降以及監管支持增加，正在擴大太陽能相較於其他傳統發電與其他再生能源的領先優勢。太陽能發電比以往任何時候都更成為新增發電的首選。不幸的是，在我們看到太陽能需求創新高的同時，產業也正面臨鋼材與運輸成本上升，其幅度與變動速度皆前所未見。

From the first quarter of 2020 to the first quarter of 2021, the spot price of hot rolled coil steel, the primary raw material used in our products, has more than doubled. Many industry analysts and market participants expected the dramatic increase in the price of steel to be temporary, which was reflected in futures markets that had indicated lower steel prices for the second half of the year throughout most of the first quarter. Based on those expectations, we felt confident in our ability to manage our input costs and maintain our margins.

從 2020 年第一季到 2021 年第一季，熱軋鋼捲的現貨價格（我們產品所使用的主要原材料）已上漲逾一倍。許多產業分析師與市場參與者原本預期鋼價的大幅上漲只是暫時性的，這也反映在期貨市場：在第一季的大部分時間裡，期貨市場顯示下半年鋼價將走低。基於這些預期，我們對於管理投入成本並維持毛利率充滿信心。

However, steel prices have continued to increase, with spot prices of hot rolled coil up more than 10% since April 1, and futures now indicate higher rather than lower steel prices for the remainder of the year. Steel represents almost half of our cost of goods sold, and we do not hold large amounts of steel in inventory. So a significant increase in the price of steel over a short period of time can negatively impact our results.

然而，鋼價仍持續上升，自 4 月 1 日以來熱軋鋼捲現貨價格又上漲逾 10%，而期貨目前顯示今年剩餘期間鋼價將走高而非走低。鋼材約占我們銷貨成本的近一半，而我們並不持有大量鋼材庫存。因此，鋼價在短時間內大幅上漲可能對我們的業績造成不利影響。

Coinciding with the increase in steel prices has been substantial increases in the cost of both ocean and truck freight. The average cost to ship a container from Asia to the West Coast has increased by more than 145% from April 2020 to April 2021. There also remains significant disruption across several U.S. ports, resulting from the April Suez Canal accident and the February Texas storm, which has resulted in higher storage and expediting costs that we would not otherwise have had in a normal environment.

與鋼價上漲同時發生的，還有海運與卡車運輸成本的大幅增加。從 2020 年 4 月到 2021 年 4 月，從亞洲運送一個貨櫃到美國西岸的平均成本上升超過 145%。此外，多個美國港口仍存在顯著的營運中斷，原因包括 4 月蘇伊士運河事故以及 2 月德州暴風雪，導致倉儲與加急處理成本上升，而在正常環境下我們本不會發生這些成本。

The cost of truck freight has also increased significantly, with the average cost per mile in the first quarter of 2021 up more than 30% versus last year, and costs have continued to increase in the second quarter. The continued increases in both steel and freight costs will impact our margins in Q2 and potentially in subsequent quarters if prices do not normalize.

卡車運輸成本也顯著上升，2021 年第一季每英里平均成本較去年增加逾 30%，且第二季成本仍持續上升。鋼材與運費成本的持續上漲將影響我們第二季的毛利率，若價格未能回歸正常，亦可能影響後續季度。

In response, we are taking several actions to mitigate the impact on the balance of the year. First, we are increasing prices. For open contracts that we have not yet shipped product against, we are currently evaluating how much of the commodity and shipping cost increases to pass on to our customers. We will make those determinations based on the specifics of each customer and situation.

為此，我們正採取多項措施，以減輕對今年剩餘期間的影響。第一，我們正在提高價格。對於尚未出貨的未結合約，我們目前正在評估要將多少大宗商品與運輸成本的上漲轉嫁給客戶。我們將依各客戶與各情境的具體情況作出決定。

Given that steel prices continue to increase and the large number of open contracts that we have, it will take time for us to evaluate each contract and determine the best course of action. The exercise is complicated because we have to balance the possibility that customers will delay orders if we pass through too much of the increase in steel prices on the basis that they may believe prices will be lower if they wait and take their order later in the year. The 2-year extension of the ITC has given customers more flexibility on when they start their projects than they had in the past.

鑑於鋼價仍在上升，且我們有大量未結合約，我們需要時間逐一評估每份合約並決定最佳作法。此項工作之所以複雜，是因為我們必須在以下風險間取得平衡：若我們轉嫁過多鋼價上漲，客戶可能延後下單，因其可能認為若等待至今年稍晚再提貨，價格會更低。ITC 延長兩年，使客戶在啟動專案的時間點上比過去更具彈性。

Second, we are entering into long-term supply agreements with steel suppliers at fixed prices. For example, we recently entered into an agreement with Nucor to supply us with steel components at a fixed price.

第二，我們正與鋼鐵供應商簽訂固定價格的長期供應協議。例如，我們近期與 Nucor 達成協議，以固定價格向我們供應鋼鐵零組件。

Third, we are further diversifying our steel supply base. For example, we recently entered into a supply agreement with a new international steel supplier at what we believe is an attractive price given the current environment.

第三，我們正進一步分散鋼材供應來源。例如，我們近期與一家新的國際鋼鐵供應商簽訂供應協議；在目前環境下，我們認為該價格具吸引力。

Fourth, we are entering into long-term contracts with Tier 1 freight providers to give us greater certainty on logistics costs and delivery performance.

第四，我們正與一級（Tier 1）貨運服務商簽訂長期合約，以提高我們對物流成本與交付表現的確定性。

And fifth, we are extending the standard order lead times that we quote to customers to give us more time to procure raw material at the best price.

第五，我們正在延長對客戶報價時的標準交期，以便有更多時間以最佳價格採購原材料。

However, given the continuing increases we are seeing in steel and freight costs as well as our ongoing review of open contracts to assess what costs we will pass on to customers, we are not able to affirm our previously provided guidance for the full year. We expect to update our guidance once we have completed the review of all of our open purchase orders and commodity and shipping prices remain stable for a long enough period of time to give us confidence in using them to develop a forecast for the remainder of the year.

然而，鑑於我們所見鋼材與運費成本仍持續上升，以及我們仍在審視未結合約以評估將轉嫁給客戶的成本，我們目前無法重申先前提供的全年財測指引。我們預期在完成所有未結採購訂單的審查，且大宗商品與運輸價格在足夠長的期間內維持穩定，使我們有信心據以建立今年剩餘期間的預測後，再更新指引。

Importantly, we believe our competitors are being impacted by the same cost increases that we are experiencing, and in certain cases, much more significantly because their smaller size gives them less buying power with suppliers. We believe the near-term pressure that is being created by the current environment may enable us to accelerate our market share gains because some of our competitors may not be able to deliver on customer commitments given their inability to procure raw materials at a competitive price or at all.

重要的是，我們認為競爭對手也正受到與我們相同的成本上升影響；在某些情況下，影響甚至更為顯著，因為其規模較小，對供應商的議價能力較弱。我們相信，目前環境造成的短期壓力，可能使我們得以加速提升市占率，因為部分競爭對手可能無法履行對客戶的承諾，原因在於其無法以具競爭力的價格（甚至根本無法）取得原材料。

We are in an environment where scale and deep supply chain relationships are significant competitive advantages, and we have both.

在當前環境下，規模與深厚的供應鏈關係是重要的競爭優勢，而我們兩者兼具。

Now I will turn it over to Nipul for a review of our first quarter results.

現在我把電話交給 Nipul，回顧我們第一季的業績。

Thanks, Jim.

謝謝你，Jim。

Before I talk about our first quarter results, it is important to keep in mind that our 2020 results were heavily first half weighted as a result of our customers seeking to lock in the 30% ITC prior to its step down at the end of 2019. This caused our customers to place the bulk of their orders in the back half of 2019 and then take deliveries in the fourth quarter of 2019 and first 2 quarters in 2020. As a result, comparing a single quarter in 2021 to the same quarter in 2020 is not indicative of the trajectory of our business since the ITC step down skewed revenues in 2020 to Q1 and Q2.

在我談第一季業績之前，重要的是要記住：由於客戶希望在 2019 年底 ITC 從 30% 下調之前鎖定 30% 的 ITC，我們 2020 年的業績在上半年占比特別高。這使得客戶在 2019 年下半年下了大部分訂單，並在 2019 年第四季以及 2020 年前兩季交付。因而，將 2021 年單一季度與 2020 年同一季度相比，並不能反映我們業務的發展軌跡，因為 ITC 下調使 2020 年的營收偏向第一季與第二季。

I'll now review our first quarter results. Revenues for the first quarter decreased 44% to $245.9 million compared to $437.7 million for the prior year period primarily driven by a reduction in the amount of ITC safe harbor-related shipments that I discussed earlier. Gross profit decreased 63% to $43.9 million compared to $118.4 million in the prior year period driven primarily by lower volume in the quarter. Gross margin decreased from 27% to 18% driven by less revenue to absorb fixed costs, somewhat lower ASPs compared to the 2020 safe harbor shipments, higher input costs due to -- primarily to higher steel prices and higher freight costs, resulting in part from disruptions caused by the winter storm in Texas as well as West Coast port closures and congestion.

我現在將回顧我們第一季的業績。第一季營收較去年同期的4.377億美元下降44%至2.459億美元，主要是因為我先前提到與ITC safe harbor相關的出貨量減少。毛利較去年同期的1.184億美元下降63%至4,390萬美元，主要受本季出貨量較低所致。毛利率由27%降至18%，原因包括營收較少而難以吸收固定成本、相較於2020年safe harbor出貨的平均售價（ASP）略低，以及投入成本上升——主要是鋼價上漲與運費上升，部分源於德州冬季風暴造成的干擾，以及西岸港口關閉與壅塞。

Operating expenses increased to $30.8 million compared to $17.1 million during the same period in the prior year, primarily as a result of a $6.2 million increase in equity-based compensation due to the transition to being a public company, $2.4 million of onetime costs related to our common stock follow-on offerings, higher costs associated with being a public company and an increase in headcount to support our product development and international growth initiatives.

營業費用增加至3,080萬美元，較去年同期的1,710萬美元上升，主要原因為：因轉型為上市公司而使股權基礎薪酬增加620萬美元、與我們普通股後續發行相關的一次性成本240萬美元、成為上市公司所帶來的較高成本，以及為支持產品開發與國際成長計畫而增加的人力。

Net income was $2.9 million compared to $73.7 million during the same period in the prior year. And basic and diluted income per share were $0.02 compared to basic and diluted earnings per share of $0.61 during the same period in the prior year.

淨利為290萬美元，較去年同期的7,370萬美元下降。基本及稀釋每股盈餘為0.02美元，較去年同期基本及稀釋每股盈餘0.61美元下降。

Adjusted EBITDA decreased 69% to $34.5 million compared to $110.7 million for the prior year period. Adjusted net income decreased 71% to $23.7 million compared to $82.3 million during the same period in the prior year. And adjusted basic and diluted adjusted net income per share was $0.19 compared to $0.69 during the same period in the prior year.

調整後EBITDA較去年同期的1.107億美元下降69%至3,450萬美元。調整後淨利較去年同期的8,230萬美元下降71%至2,370萬美元。調整後基本及稀釋後的調整後每股淨利為0.19美元，較去年同期的0.69美元下降。

Total executed contracts and awarded orders at March 31, 2021, was $777.1 million, representing a 10% increase from the amount at December 31, 2020.

截至2021年3月31日，已簽署合約與已獲授予訂單總額為7.771億美元，較2020年12月31日的金額增加10%。

Turning to our outlook. As Jim mentioned earlier, given the continuing increases we are seeing in steel and freight costs as well as our ongoing review of open contracts to assess what costs we will pass on to our customers, we are not able to affirm our previously provided guidance for the full year.

接著談我們的展望。如Jim先前提到，鑑於我們看到鋼材與運費成本持續上升，以及我們仍在檢視未結合約以評估哪些成本將轉嫁給客戶，我們目前無法確認先前提供的全年財測指引。

Looking ahead to the second quarter, we expect commodity price increases to delay some project starts, which will result in lower revenues and adjusted EBITDA versus the first quarter.

展望第二季，我們預期大宗商品價格上漲將延後部分專案啟動，導致營收與調整後EBITDA將低於第一季。

Now I'll turn it back over to Jim for some closing remarks.

現在我把時間交還給Jim做一些結語。

Thanks, Nipul.

謝謝你，Nipul。

I'll conclude by saying despite the short-term headwinds we face from commodity and shipping cost increases, we remain well positioned in a rapidly growing industry. The outlook for solar remains very strong. Businesses and consumers continue to accelerate their efforts to decarbonize energy. The regulatory environment is extremely constructive. And solar with trackers has demonstrated it is the lowest cost and most environmentally-friendly form of new generation. We have built strong relationships with our customers and suppliers, and we will continue to work daily with them to ensure that we can continue to support the growth in the solar industry while striving to deliver strong returns for our shareholders.

我最後想說，儘管我們短期面臨大宗商品與運輸成本上升的逆風，我們在一個快速成長的產業中仍具備良好定位。太陽能的前景依然非常強勁。企業與消費者持續加速其能源去碳化的努力。監管環境極具建設性。而搭配追蹤系統的太陽能已證明是新增發電中成本最低且最環保的形式。我們已與客戶與供應商建立穩固關係，並將持續每日與他們合作，確保我們能在支持太陽能產業成長的同時，努力為股東帶來強勁報酬。

We believe that what we are seeing in steel prices and shipping costs is temporary and does not suggest to us a permanent change in our cost structure or margins. We believe there is more than sufficient steel production and shipping capacity globally to meet the world's needs, and we expect prices will normalize once the restart of the global economy is complete following the pandemic shutdowns. As inventory is rebuilt and supply chains refilled, we are confident we will see more rational pricing ahead.

我們認為目前看到的鋼價與運費上升是暫時性的，並不代表我們的成本結構或利潤率出現永久性改變。我們相信全球鋼鐵產能與航運運力綽綽有餘，足以滿足世界需求；並預期在疫情停擺後全球經濟完成重啟後，價格將回歸常態。隨著庫存重建、供應鏈補貨，我們有信心未來將看到更合理的定價。

In the meantime, we will aggressively work our mitigation efforts and look for opportunities to use the current environment to play offense by leveraging our size and scale. We believe we will emerge stronger competitively when conditions normalize than when we entered into the current environment.

同時，我們將積極推動各項緩解措施，並尋找機會利用目前環境，憑藉我們的規模與量體主動出擊。我們相信當情勢回歸正常時，我們的競爭力將比進入目前環境之前更強。

And with that, operator, open the line for questions.

那麼，接線員，請開放提問。

(Operator Instructions) Our first question is from the line of Brian Lee with Goldman Sachs.

（接線員指示）我們的第一個問題來自高盛（Goldman Sachs）的Brian Lee。

Maybe first one, just feel like a lot of people are going to have this question. But on the open contract construct, can you walk us through that a little bit more in detail? I was under the impression that once you accept the PO, you go straight into the market or quickly thereafter and order the required materials so that you have a bit of a natural hedge against input cost increases.

也許先問第一個，我覺得很多人都會問這題。關於未結合約（open contract）的架構，你能否更詳細地帶我們走一遍？我原本的理解是，一旦你們接受採購單（PO），就會立刻或很快進入市場下單採購所需材料，這樣對投入成本上升就會有某種自然避險。

I would have imagined you would have factored in logistics costs at the same time that you're pricing these contracts. So could you maybe just refresh us on the time line of you setting a price with the customer and then when you order from your supply chain and kind of what the mismatch is here?

我也以為你們在為這些合約定價時就會同時把物流成本納入考量。所以你能否幫我們更新一下：你們與客戶訂定價格的時間點，與你們向供應鏈下單的時間點之間的時程，以及這裡的落差到底是什麼？

Yes. Brian, so the typical cycle time is when you go into a customer negotiation, the contract negotiation typically can take anywhere from 4 to 6 weeks, depending on the size complexity of the project, how much engineering work is done upfront. And then when you kind of settle on bill of materials, that's when we would kind of do it the outreach to our supply chain, to get indicative quotes in order to support the quoting activity, which ultimately we give to the customer.

好的。Brian，一般的週期是：當你進入與客戶的談判時，合約協商通常需要4到6週，視專案規模與複雜度，以及前期完成多少工程作業而定。接著當你們大致確定物料清單（bill of materials）後，我們就會與供應鏈接洽，取得指示性報價（indicative quotes），以支援報價活動，最終提供給客戶。

So in normal conditions, when you have stable commodities, we would be giving indicative quotes that were obviously relatively stable to what the futures are looking like. So we could pretty much nail that down. And obviously, there was triggers per contract per customer on any prior or existing cost escalations that one might see with commodities.

在正常情況下，當大宗商品價格穩定時，我們提供的指示性報價通常也會相對穩定，與期貨走勢大致一致，因此我們幾乎可以把成本鎖定下來。而且，針對任何既有或可能出現的大宗商品成本上漲，各合約、各客戶通常也會有相應的觸發條款。

But given the rate of increase that we have seen -- so for example, since April 1, commodities -- hot rolled coil is up 10% and still continues to rise, actually, it wasn't the case kind of early on if you go back to maybe like early April. So we were giving prices, and futures were actually pointing down. So we felt confident in our ability to give a price. They would go back. They factor that in. By the time you get to a contract where you're close to signing, we saw that in some cases, prices went up, but still look like futures were going down. You give them a price increase. And then lo and behold, you'd execute to the PO. And by the time you would solidify your suppliers, there'd be subsequent increases.

但考量我們看到的上漲速度——例如自4月1日以來，大宗商品方面，熱軋捲（hot rolled coil）上漲了10%，而且仍在上升；其實如果回到4月初，當時並非如此。我們當時給出的價格，期貨反而指向下行，所以我們對報價能力很有信心。客戶會回去把這些納入考量。等到合約接近簽署時，我們看到某些情況下現貨價格上升，但期貨看起來仍在下行；我們就給客戶調高價格。結果等你執行到採購單（PO）後，到了你真正與供應商敲定時，又出現後續的漲價。

So it's that lag, or shall I say, that lead time between when you agreed upon a price and/or subsequent price increases when you actually close and then we negotiate with our suppliers that you were seeing a rapid increase in the commodities that impacted, obviously, our COGS. So that's kind of the mechanics and a brief time line overview of how it's working with us.

因此，影響就在於這個時間差——或者說，從你同意價格以及/或後續調價，到你實際完成簽約、再到我們與供應商談妥之間的前置時間——在這段期間大宗商品快速上漲，進而影響了我們的銷貨成本（COGS）。這就是運作機制，以及一個簡要的時程概述。

Okay. That's super helpful. And then maybe just as we think about the rest of the year here, you're saying that there's definitely an impact on Q2, sounds like, on margins?

了解。這非常有幫助。那接著，當我們思考今年剩餘時間時，你們的意思是第二季肯定會受到影響，聽起來是毛利率方面？

And then as you contemplate how to do some of the mitigation factors, including price, sounds like you're worried that some volume might slip into a later period, outside of '21, hence, why the guidance isn't being reiterated here, I guess, what's the sort of volume level that you still have, which you would consider in that open contract phase where you are sort of at risk of either not being able to secure the volume or you're going to potentially have to take a margin hit relative to what you initially were thinking when you first quoted the contracts?

然後當你們思考如何採取一些緩解措施（包括調價）時，聽起來你們擔心部分出貨量可能會延後到較晚的期間、甚至落在2021年以外，因此才沒有重申指引。我想問的是：你們目前仍有多少量處於這種未結合約階段，你們認為在這階段存在風險——要嘛無法確保該量，要嘛相較於最初報價時的預期，可能必須承受毛利率下滑？

Just trying to get a sense of how much of the backlog awarded orders volume might actually be at play here. And then I have one last follow-up.

我只是想了解：已獲授予訂單的積壓訂單（backlog）量中，究竟有多少可能會受到影響。然後我還有最後一個追問。

Right. Yes. Thanks, Brian. I'll put it in a different context. We've got roughly about 100 or so open contracts that we're currently assessing. So -- where there's a lot of analytics that we have to run through. So we've got price, which you mentioned; long-term supply agreements, which we obviously announced recently here with Nucor. We continue to diversify the supply chain, which, when you do that, right, you build in an element of logistics, what does that cost and then the freight agreements that we're executing to, because in as much as we want to lock down, our suppliers on the commodity element, we want to do the same thing with freight, and then extending lead times for our customers.

好的。是的。謝謝，Brian。我用另一個角度來說。我們目前大約有100份左右的未結合約正在評估中——其中需要跑很多分析。因此我們會考量你提到的價格；我們也有長期供應協議（long-term supply agreements），我們最近也宣布了與Nucor的協議。我們持續分散供應鏈，而當你這麼做時，你會把物流因素納入：成本是多少；以及我們正在簽署的運費協議，因為就像我們希望在大宗商品面向把供應商鎖定下來一樣，我們也希望在運輸上做到同樣的事；另外也包括為客戶延長交期。

So when you factor in price and lead times, commercial team has to work with our customer to see what appetite they have, where that stands with relative to the project within their time horizon, does it move to the right, how far to the right. So that's something that we're actually assessing, and I really can't give you an exact answer on where it is. And that's why we have to really sit down and go through these analytics to understand how much we can control within our own 4 walls and then the impact to our customer.

因此，當你把價格與交期納入考量時，商務團隊必須與客戶合作，了解他們的接受度如何、在其時間範圍內相對於專案的狀況如何、是否會往右移、以及會往右移多遠。所以這是我們正在評估的事情，而我確實無法給你一個精確的答案說目前到哪一步。這也是為什麼我們必須真正坐下來，逐一檢視這些分析，去理解在我們自身「四面牆」之內能控制多少，然後再看對客戶的影響。

All right. Fair enough. And then maybe just one last housekeeping one, and I'll pass it on. There was a $10 million line item called investment in equity securities on the cash flow statement this period. Could you elaborate on what that was? Just I hadn't seen that before.

好，了解。那再來可能最後一個例行問題，我問完就交棒。本期現金流量表上有一筆 1,000 萬美元的科目，叫做「投資於權益證券」。你能說明一下那是什麼嗎？只是我以前沒看過這一項。

Yes. And Brian, it's Nipul. So this is what we had talked about in our Q4 call. We did take an investment in a company, and that's what that represents.

可以。Brian，我是 Nipul。這就是我們在第四季電話會議中談到的。我們確實對一家公司做了一筆投資，而那一項就是代表這件事。

Our next question is coming from the line of Michael Weinstein with Credit Suisse.

下一個問題來自 Credit Suisse 的 Michael Weinstein。

What -- I guess what's your decision-making process for not hedging steel using, let's say, financial hedges going forward? You're talking about locking in a fixed price contract with Nucor at this point, but why not hedge what you think the volume will be for the next year?

我想問的是——你們未來不使用例如金融避險工具來對鋼材進行避險的決策流程是什麼？你們現在談的是與 Nucor 鎖定固定價格合約，但為什麼不針對你們預期明年的用量做避險呢？

Yes. Michael, this is Nipul. So in the past, that has not been our strategy. We have been working with our suppliers to -- and let them take that risk on. And when commodities were within a certain band, that was okay to do. We are open, and we will be looking at other methods in the future on securing supply for a longer term.

是的，Michael，我是 Nipul。過去這並不是我們的策略。我們一直是與供應商合作——讓他們承擔那個風險。當大宗商品價格在某個區間內波動時，這樣做是可以的。我們也持開放態度，未來會評估其他方法，以更長期的方式來確保供應。

And why not give revenue guidance now? Is the supply chain tightness impacting project construction schedules to an extent that you can't give revenue guidance?

那為什麼現在不提供營收指引？供應鏈緊縮是否影響到專案施工進度，以至於你們無法提供營收指引？

Yes. Michael, I would just go back to what we were saying. There's price that we're going to be extending to the customer's new pricing. They have to digest that. Our lead times are going to extend with them. They'll have to factor that in as well. So really, those are the 2 elements that are really going to -- we're going to work and collaborate with our customer and to see what will stick, what won't. So we're -- it's far too early for us to really give any type of volume commitment here our guidance.

是的，Michael，我會回到我們剛才說的重點。有價格因素——我們會把新的定價延伸到客戶端，他們需要時間消化。我們的交期也會拉長，客戶也必須把這點納入考量。所以真正會影響的就是這兩個要素——我們會與客戶一起合作、協同，看看哪些會被接受、哪些不會。因此，現在對我們來說還太早，無法在這裡給出任何形式的量的承諾或指引。

And just one last question. Do you have any recourse built into your contracts for existing deliveries? Like is there anything -- is there any wiggle room in your current contracts that allow you to pass along these costs? Or is it fixed?

最後一個問題。你們在既有交付的合約裡有任何追索或補救條款嗎？也就是說，你們目前的合約是否有任何彈性可以把這些成本轉嫁出去？還是固定的？

Every contract is different. So there's some customers that will work with us on lead times relative to what buffer they put in their contract. So everyone is different. There's typically a little bit of headroom to work with. Everyone gives themselves a little bit of white space, if you will, on delivery. But given where logistics are today in the current environment, it becomes quite challenging.

每一份合約都不一樣。有些客戶會在交期上與我們配合，取決於他們在合約中設定了多少緩衝。因此每家都不同。通常會有一點可操作的空間。大家在交付上都會留一些餘裕、留一些「白色空間」（如果你這麼說的話）。但以目前環境下的物流狀況來看，確實變得相當具挑戰性。

The next question is coming from the line of Paul Coster with JPMorgan.

下一個問題來自 JPMorgan 的 Paul Coster。

This is Mark Strouse for Paul. Jim, I appreciate your comments about the futures market in the second half of this year. Just curious what you're hearing from your actual suppliers, though. Are they looking to add any incremental capacity or anything like that, that might lead to a different outcome?

我是代 Paul 提問的 Mark Strouse。Jim，謝謝你對今年下半年期貨市場的評論。我想了解你從實際供應商那邊聽到的是什麼。他們是否打算增加任何額外產能之類的，可能導致不同的結果？

They all have a different investment thesis, and their demand profiles vary. You've got some out there that are supplying the automotive industry, others for more infrastructure focused, structural, if you would. Demand remains relatively high across the board, at least this is what we're telling us. You'd have to do your own deep dive on what they're saying in their earnings releases. But for the balance of the year, at least what futures are indicating that they continue to rise.

他們各自都有不同的投資主張，而且需求結構也不同。有些供應汽車產業，另一些則更偏向基礎建設、結構用鋼之類的。整體需求仍然相對偏高，至少他們是這麼告訴我們的。你也可以自行深入研究他們在財報新聞稿裡怎麼說。但就今年剩餘時間而言，至少從期貨所反映的訊號來看，價格仍在持續上升。

So that's indicative of the demand. To the extent they're going to add capacity, that's really how they're going to really deploy their capital, whether they're going to bring those furnaces and mills back up or not. And part of that, Mark, is -- I think this is Mark, correct?

所以那也反映了需求。至於他們是否會增加產能，關鍵在於他們如何配置資本——是否要把那些高爐與鋼廠重新開起來。還有一部分，Mark，是——我想這是 Mark，對嗎？

Yes.

是的。

Mark, is that's part of our analytics. When we deal with our suppliers and these long-term supply agreements, we're obviously looking for the commitment to support the capacity because one of the things I want to press upon is as when we go into these supply agreements, we want to make sure that we're locking down the assurance of supply. And that's resonating with a number of our customers here.

Mark，這也是我們分析的一部分。當我們與供應商洽談這些長期供應協議時，我們當然會尋求他們承諾支撐產能，因為我想強調的一點是：當我們進入這些供應協議時，我們希望確保把供應保障鎖定下來。而這一點也正在引起我們不少客戶的共鳴。

Okay. And then as far as the balancing act between kind of near-term financial impact and longer term, keeping your customers happy and potentially gaining share, I mean, looking at approximately or approaching 50% of your bill of materials that steel in those prices doubling, I mean, are you willing to accept very near term, at least, kind of close to breakeven or even negative gross margins in order to gain some share? Just any kind of color you can provide as far as near-term pain versus long-term gain would be helpful.

了解。那再來談到在短期財務影響與長期維持客戶滿意、甚至可能提升市占之間的平衡——如果你們的物料成本中大約、或接近 50% 是鋼材，而鋼價翻倍，你們是否願意在非常短期內接受接近損益兩平、甚至毛利為負，以換取一些市占？任何能提供的說明，關於短期痛苦與長期收益的取捨，都會很有幫助。

Yes. I would preface it, Mark, by saying, first of all, the industry is still very healthy with respect to the growth and what solar does overall for new electricity generation. So the train has left the station there. But again, this is part of the analytics that we're driving here to really balance between these short-term projects, i.e. those 100 contracts or so that we're flushing through versus their overall portfolio and where that lands. But I wish I could give you more color, but we just got to put pen to paper here and sit down with the customers and really flesh this out.

是的，Mark，我會先說明：首先，就整體成長以及太陽能在新增發電中的角色而言，這個產業仍然非常健康。那班列車已經出站了。但同樣地，這也是我們正在推進的分析之一，用來在短期專案——也就是我們正在處理的那大約 100 份合約——與客戶整體專案組合及其落點之間取得平衡。我希望能給你更多細節，但我們必須把分析落到紙面上，與客戶坐下來把這些事情真正釐清。

Our next question is from the line of Stephen Byrd with Morgan Stanley.

下一個問題來自 Morgan Stanley 的 Stephen Byrd。

I guess thinking about the nature of the contracts, you've given us a lot of color to think through. At a high level, I guess, stepping back, is there a chance that this kind of a commodity shock could result in sort of different structured contracts in the future, sort of fundamental changes in how contracts are structured?

我想從合約性質來看，你們已經提供了很多可供思考的資訊。從更高層次退一步看，是否有可能這種大宗商品的衝擊，會在未來導致合約結構出現不同的設計，也就是合約架構上出現根本性的改變？

I know it's early days, but just curious, do you think this is something where you and your customers can sort of look at this and think through a different approach in the future in terms of how to mitigate these risks?

我知道現在還很早，但想請教你是否認為，你們和客戶可以藉由這次事件，在未來思考一種不同的方法，來降低或緩解這些風險？

That's exactly what we're doing, Steve. These are the conversations we're having with the customer. I think what Nipul alluded to earlier, we have a very strong supply chain, very diversified. So we never really had to give that volume commit. So when you add times where commodities were somewhat normalized, that worked well.

Steve，我們正在做的正是這件事。這些就是我們正在與客戶進行的對話。我想 Nipul 先前提到，我們的供應鏈非常強、而且非常多元化，所以我們過去從來不需要做出那種量的承諾。再加上當時大宗商品價格相對正常化，這樣的做法運作得很好。

I think I even mentioned on the last earnings release that we certainly want to be working with our supply chain and firming it down. I'm not a strong proponent of giving volume commits, but certainly, in these times, that's kind of where we're heading.

我想我甚至在上一次財報發布時也提到，我們確實希望與供應鏈合作，把供應更「確定化」。我不是很支持做出量的承諾，但在這種時期，這大概就是我們前進的方向。

Now how that changes the contractual language, what that means for the customer and how that construct really comes forward, that's customer by customer, and that's exactly what we're doing here throughout the balance of the year.

至於這會如何改變合約文字、對客戶意味著什麼、以及這種架構會如何成形，這要一個客戶一個客戶來看，而這正是我們在今年剩餘時間裡要做的事情。

Understood. And in some other parts of clean tech, we've seen sort of ideas around shared pain and gain, and I'm guessing that could be at least one option that you could consider here as well.

了解。在潔淨科技的其他領域，我們也看到一些「共享痛苦與收益」的概念，我猜這至少可能是你們在這裡也能考慮的一個選項。

Potentially.

有可能。

Okay. Understood. And then lastly, you had described in your prepared remarks a bit about sort of, obviously, this is impacting you. It's impacting competitors as well. Would you maybe just expanding a little bit on sort of how you assess your relative position compared to the competition? I know that's not always easy to fully know exactly where your competitors are. But given your -- what you've seen, would you mind just adding a little bit more to that?

好，了解。最後，你在事先準備的發言中提到一些——顯然這正在影響你們，也同樣影響競爭對手。你能否再多談一點，你們如何評估相對於競爭對手的自身位置？我知道這不一定容易完全掌握競爭對手的實際狀況。但就你們所看到的情況而言，能否請你再補充一些？

Yes. And again, I emphasize, it's our belief, and it's predicated on our size and scale and what we've shipped. And certainly, when we sit down with the likes of a Nucor and others, they understand and recognize the value that we bring, and they're obviously willing to put pen to paper with respect to our performance.

是的。而且我再次強調，這是我們的看法，並且是基於我們的規模與量體以及我們已出貨的成果。當然，當我們與像 Nucor 等公司坐下來討論時，他們理解並認可我們帶來的價值，也顯然願意就我們的表現簽字落實。

So the -- our supply chain and how they are responding relative to our growth and this industry remains very positive, and certainly, our size and scale. And what we can deliver, what we have delivered is being reflected by our customers such as with Primoris on the recent press release. They're really -- part of the -- one of the attributes there and the strength that we have there is our ability to supply, is our ability to lock down some of these long-term supply agreement. So that's where our focus is, and we believe this is a strength for us going forward.

因此——我們的供應鏈，以及他們相對於我們成長與本產業的回應，仍然非常正面，尤其是考量到我們的規模與量體，以及我們能交付、也已交付的能力。這點也反映在我們的客戶身上，例如 Primoris 在近期新聞稿中的表述。他們真的——其中一部分——那裡的一個特質與我們的優勢之一，就是我們的供應能力、以及我們能夠鎖定一些長期供應協議的能力。因此這就是我們的重點，我們相信這會是我們未來前進的一項優勢。

Understood. And so that could lead to potentially a shakeout where smaller players really are, to your point, they may not be able to provide the volume, might actually exit the business if they're feeling enough pain. I guess we'll have to stay tuned to see.

了解。那麼這可能會導致潛在的洗牌，小型業者如你所說，可能無法提供足夠的量，如果承受足夠的壓力，甚至可能退出這個業務。我想我們只能持續觀察。

Yes. I wouldn't speculate on that. I would just kind of point you back to where our strengths are, our demonstrated results.

是的。我不會對此做推測。我只會把重點帶回到我們的優勢所在，也就是我們已經證明的成果。

Our next question is coming from the line of Colin Rusch with Oppenheimer.

下一個問題來自 Oppenheimer 的 Colin Rusch。

Could you speak to the geographic concentration on the projects that are getting pushed out to the right? Is that primarily in North America? Or are you starting to see that in Europe as well?

你能談談那些被往後延的專案在地理上的集中度嗎？主要是在北美嗎？還是你們也開始在歐洲看到這種情況？

I would say the -- first of all, I'll have to get back to you with respect to the geographic impact. But certainly, as we go through these contracts, I don't have that readily available right now, and that's going to be an output of the analysis that we do run. And I could -- I would say that we are seeing that globally, especially in Western Europe as well.

我會說——首先，關於地理影響我得再回覆你。但當然，當我們逐一檢視這些合約時，我現在手邊沒有現成的資料，而那會是我們所做分析的輸出結果。我也可以——我會說我們在全球都看到了這種情況，尤其在西歐也有。

Okay. That's super helpful. And then just in terms of kind of normalized seasonality, you guys have a really good view on construction schedules and kind of how these time frames work. And obviously, there's some inefficiencies here that you're speaking to.

好的。這非常有幫助。接著就常態化的季節性而言，你們對施工排程以及這些時間框架如何運作有很好的掌握。而且顯然，你剛才提到這裡存在一些效率損失。

But just in terms of kind of overall demand and normalized seasonality ex some of the basic supply chain issues, are you seeing incremental growth this year in the way that you had anticipated? Or is it something that's a little bit more systemic here that may last a little bit longer around some of the seasonal impacts?

但就整體需求與常態化季節性、排除一些基本供應鏈問題來看，你們今年是否仍如原先預期看到增量成長？還是這裡有更系統性的因素，可能讓某些季節性影響持續更久？

No. I would go back to what I said earlier. The overall industry remains healthy and strong. We're not seeing like any serious dislocation long term. Like I said, this is something that we see as rather short term. And obviously, we're going to assess that with our customer base. But not a longer-term basis. So hopefully, I'm answering that question.

沒有。我會回到我先前說的：整體產業仍然健康且強勁。我們沒有看到任何長期的嚴重錯位。就像我說的，我們認為這比較偏短期。當然，我們會與客戶群一起評估。但不是以更長期的角度。所以希望我有回答到你的問題。

Our next question comes from the line of Philip Shen with ROTH Capital.

下一個問題來自 ROTH Capital 的 Philip Shen。

First one is on the Nucor contract. Could you give us a little bit more detail? Sorry if I missed it, but perhaps the length of the contract, and are you matching the Nucor contract with a customer contract, for example? And any other structures you might have there, including to what degree -- when you lock in price, are you locked in at a discount to spot, at a premium to spot? That kind of detail would be fantastic.

第一個問題是關於 Nucor 的合約。你能提供更多細節嗎？如果我漏聽了很抱歉，但例如合約期限，以及你們是否用客戶合約去對應 Nucor 合約？以及你們可能採用的其他架構，包括——當你們鎖定價格時，是以現貨折價鎖定、還是以現貨溢價鎖定？這類細節會非常棒。

Yes. Unfortunately, I can't get too much specific surrounding that agreement because our size and scale and our ability to get these contracts is a competitive advantage. But I will tell you that it certainly is a discount to spot.

是的。很遺憾，關於該協議我不能提供太多具體細節，因為我們的規模與量體，以及我們取得這些合約的能力，是一項競爭優勢。但我可以告訴你，確實是相對現貨價格的折價。

Great. Okay. That's helpful. And then can you -- from a length standpoint, is it a year long? Or is it matched with the customer contract at all? Is that something you feel comfortable sharing, Jim?

很好。好的，這很有幫助。那麼就期限而言，是一年期嗎？或是有與客戶合約做任何配對嗎？Jim，這部分你方便分享嗎？

No, not at this juncture right now. Certainly, we obviously have obligations, confidentiality with Nucor. So I just want to respect that.

不，目前這個時間點不方便。當然，我們對 Nucor 有保密義務，所以我想尊重這點。

Okay. Appreciate that. And then I know you've touched on this in a number of ways. But when you look at Q4, when you guys reported, that was just 2 months ago, and you talked about how much steel and freight have gone up in just 1 month, I guess, since April and the beginning of April, over the past month.

好的，理解。接著我知道你已用多種方式提到這點。但當你回顧第四季、你們發布財報時，那其實是兩個月前，你談到鋼材與運費在短短一個月內上漲了多少，我想是從四月、四月初到過去這一個月。

So what else -- what are the factors do you think true of you to remove that -- the guidance for now? Is it -- was it just those 2 factors or were there other factors? And if so, any color on that would be great.

那麼除此之外——你認為促使你們現在撤回指引的因素還有哪些？是——就只是那兩個因素嗎？還是還有其他因素？如果有的話，能否補充一些說明？

Yes. I would just go back to what we said here. I mean, really, it was the rate of increase. Again, like if you look from since April 1, the hot rolled coil is up 10%, and it's still rising. And then if you look where it was same period last year, i.e., first quarter of '20 to the first quarter of '21, it's up 2x. It was really that rate of increase. And then to compound that, obviously, you look at what's happened with freight as of April '20 to April '21, freight is up 145%, and that's all since really the beginning of April. So a lot has really changed.

是的。我會回到我們在這裡所說的。我的意思是，主要是上漲的速度。再次強調，如果你看自 4 月 1 日以來，熱軋捲價格上漲了 10%，而且仍在上升。再看去年同期，也就是 2020 年第一季到 2021 年第一季，價格上漲了 2 倍。真正的關鍵就是那個上漲速度。再加上，顯然你看運費從 2020 年 4 月到 2021 年 4 月上漲了 145%，而這些幾乎都是從 4 月初開始發生的。所以很多事情真的都變了。

And then I would add on, if you look pretty much towards the beginning of April, futures were actually pointing down for steel in the second half. So that was -- gave us a little bit of optimism. And then in short order, they have increased substantially.

另外我補充一下，如果你看大約在 4 月初，鋼材期貨其實還指向下半年會下跌。所以那——讓我們稍微有些樂觀。但在很短時間內，它們就大幅上升。

So a lot has changed just since April 1 that has really caused us to really revisit, go back to price, go back to those long-term supply agreements, supplier diversity, getting long-term agreements now with freight carriers and extending those lead times. So that's really kind of those -- the 3 pillars, if you would, that has really changed since the last time we spoke.

所以自 4 月 1 日以來，很多變化促使我們必須重新檢視：回到定價、回到那些長期供應協議、供應商多元化、現在就與貨運承運商簽長期協議並延長交期。因此，這大概就是——如果你願意這麼說——自上次我們交流以來真正改變的三大支柱。

Okay. Got it. And then from a seasonality standpoint, last quarter, you talked about Q1 being 20% to 25%, Q2 being 25% to 30%, Q3 being the same and then Q4 being 20% to 25%. I know Q2 is looking to be down now. Any -- can you give any sense for what Q3 and 4 might look like? Or is it actually just not possible because you got to review those 100 contracts?

好的，了解。那就季節性而言，上季你提到第一季占 20% 到 25%，第二季占 25% 到 30%，第三季相同，第四季占 20% 到 25%。我知道現在看起來第二季可能會下滑。你能否大概說一下第三季和第四季可能會是什麼樣子？還是其實不可能，因為你們必須審視那 100 份合約？

Yes. Unfortunately, it's just the latter of what you said there. It's really we have to go back to the customer with these prices. And again, I'll remind you that we've already gone through, shall we say, the phase 1 of price increases. So we have to sit down -- what does the extended lead time really mean and what are these continued increases in our cost, i.e. price mean?

是的。不幸的是，就是你後面說的那種情況。我們真的必須帶著這些價格回到客戶那邊。再提醒一次，我們已經走過——可以說——第一階段的漲價。所以我們必須坐下來討論——延長的交期到底意味著什麼，以及我們成本的持續上升，也就是價格，上升到底意味著什麼？

The next question is coming from the line of Martin Malloy with Johnson Rice.

下一個問題來自 Johnson Rice 的 Martin Malloy。

The first question I had on the international markets where you continue to add customers. Are these markets where they previously were not using trackers? Or are you gaining market share from customers that were previously using trackers?

我第一個問題是關於你們持續新增客戶的國際市場。這些市場是以前並未使用追蹤器（tracker）的市場嗎？還是你們正在從先前使用追蹤器的客戶那裡取得市占？

Yes. Martin, it's Jeff Krantz here. A quick answer to your question, it's more of the latter. We're actually taking some share from some European tracker companies in markets that had already been established with trackers.

是的，Martin，我是 Jeff Krantz。簡短回答你的問題：比較偏向後者。我們其實是在一些已經建立追蹤器市場的地區，從某些歐洲追蹤器公司手上拿到一些市占。

Okay. And then on the last call and with the last earnings release, you talked about the R&D investments that you're going to be -- that you are going to be making ongoing here. And anything to update us there in terms of timing of when we might see some new product introductions?

好的。接著在上次電話會議以及上一份財報新聞稿中，你談到你們將——你們將在此持續進行研發投資。這方面在時程上有沒有任何更新，例如我們何時可能看到一些新產品推出？

No. Our investment continues on the R&D. Nothing material has changed from what we plan to roll out, and I would love to invite you out to come to our research center so you can see what we have planned.

不會。我們仍持續投入研發（R&D）。我們計畫推出的內容沒有任何重大變化，我也很樂意邀請你來我們的研發中心參觀，讓你看看我們的規劃。

The next question is coming from the line of Kashy Harrison with Simmons Energy.

下一個問題來自 Simmons Energy 的 Kashy Harrison。

So first one, Jim, just to -- maybe just a really, really simple question. What's your base case on how long it's going to take for the business to normalize? Are you thinking we're back to normal 2022? Or are you thinking we're back to normal 2023?

首先，Jim，我想先問一個——也許非常、非常簡單的問題。你對業務恢復正常需要多久的基本情境（base case）是什麼？你認為我們會在 2022 年回到正常？還是 2023 年才回到正常？

Well, I wish I had the crystal ball on the futures for steel. No one seems to have gotten that one right. But we're certainly going to work this as hard as possible to really understand what the impacts are, at least to ensure we can continue to execute here.

嗯，我希望我有鋼鐵期貨的水晶球。似乎沒有人把這件事判斷對。但我們一定會盡最大努力把這件事做透，真正了解影響是什麼，至少確保我們能在這裡持續落實執行。

But really, it's -- I'm not a savant when it comes to steel futures and what '22 looks like, but what we have pen to paper on right now is really making sure that we put the right agreements in place, both with our suppliers and freight forwarders. We can ensure the lead time and get the right price for our customers really to work through this hyperbolic increase in commodities as we're seeing it.

但說真的——我不是鋼鐵期貨方面的天才，也無法精準預測 2022 年會是什麼樣子；不過我們目前已經落筆成文、正在做的，是確保我們與供應商及貨運承攬商（freight forwarders）都簽好正確的協議。我們要能確保交期，並為客戶取得合適的價格，以因應我們所看到的原物料價格這種誇張式的上漲。

Okay. That's -- I appreciate the honesty there. And then in terms of -- I know there were a few questions asked about these long-term agreements that you -- you're thinking about entering into or you've entered into. Are there any concerns that when we do eventually emerge on the other side of this, that these contracts could actually make it difficult to hit your long-term EBITDA margin target that you've outlined previously?

好的——我很感謝你這麼坦白。接著就——我知道之前有幾個問題在問你們正在考慮簽訂或已經簽訂的這些長期協議。你們是否擔心，當我們最終走出這段期間後，這些合約反而會讓你們難以達成先前所提出的長期 EBITDA 利潤率目標？

Great question. The key there is making sure that you have key strategic suppliers and many of them so that you at least have some flexibility and ability to move should they go in either direction, i.e., the commodity. And then obviously, we work with our suppliers for the proper and appropriate offramps to manage accordingly.

問得很好。關鍵在於確保你有一些關鍵的策略性供應商，而且要有多家，這樣至少能保有一定的彈性；當商品價格（也就是大宗商品）往任一方向變動時，你都有能力調整。然後當然，我們也會與供應商談妥適當且合宜的退出機制（offramps），以便相應管理。

Okay. And then final one for me, if I could sneak one for -- sneak one in, and this is for Nipul. Working capital represented a pretty meaningful use of cash during Q1. How are you thinking about it over the course of the rest of the year? Should we expect working capital to represent a source of cash? Or do you think it's going to continue to be a use of cash in Q2 through Q4?

好的。最後一個問題，如果我可以再偷偷塞一題——這題給 Nipul。第一季營運資金占用了相當可觀的現金。你們對今年剩餘期間的營運資金怎麼看？我們應該預期營運資金會成為現金來源？還是你認為在第二季到第四季會持續是現金用途？

Yes. Kashy, so Q1, the reason it was a source was related to the linearity and the ITC order placements and the prepayments in Q4. So we fully expected that. As we ramp up for the build seasons here in Q2 and Q3, we expect a little bit of use. But then by full year, we expect it to be a total source of cash.

是的，Kashy。第一季之所以是現金來源，與季節性（linearity）、ITC 訂單下單節奏，以及第四季的預付款有關，所以我們完全在預期之內。隨著我們在第二季與第三季為施工旺季（build seasons）拉升準備，我們預期會有一些現金使用。但以全年來看，我們預期營運資金整體會是現金的淨來源。

Okay. Full year, total source. Got it.

好的。全年、整體現金來源。了解。

Our next question is from the line of Jeff Osborne with Cowen.

下一個問題來自 Cowen 的 Jeff Osborne。

Most of them have been asked, but a couple -- I might have missed this, but you were referencing the open contracts in response to Brian's question. Are 100% of the contracts outstanding open? Or is there a portion that are closed just due to the terms and conditions?

大多數問題都已經被問過了，但還有幾個——我可能漏聽了：你在回覆 Brian 的問題時提到未結合約（open contracts）。目前所有未結合約是否 100% 都是開放式（open）？還是因為條款與條件的關係，有一部分其實是封閉式（closed）的？

There's a portion that are closed, Jeff.

有一部分是封閉式的，Jeff。

I assume it's not that meaningful, though, relative to the open given the nature of the conversation. Is it fair?

我猜相對於開放式的部分，封閉式的比例應該不算太大，從我們對話的脈絡來看。這樣理解合理嗎？

That's a fair assessment.

這樣的判斷是合理的。

Okay. And then a couple for Nipul. I was wondering if you can comment on what the comparison was, safe harbor revenue from Q1 of last year, just as you flagged the year-over-year tough comps. Is there a way you can quantify that?

好的。接著有幾個問題想問 Nipul。我想請你評論一下，去年第一季的 safe harbor 收入（revenue）比較基期是多少？你剛提到年對年比較基期很硬（tough comps）。有沒有辦法量化一下？

Yes. Sure. So Q1 of 2020, we had about $300 million of safe harbor shipments. And in Q1 '21, this current quarter, it was about $100 million.

可以，當然。2020 年第一季，我們大約有 3 億美元的 safe harbor 出貨（shipments）。而在 2021 年第一季，也就是本季，大約是 1 億美元。

Yes. Got it. And then how should we think about the OpEx trajectory from here? It came in a little bit higher than I was modeling at least. Is this a good run rate for the rest of the year? Or as you're still building out the team internationally and the new Phoenix center, should that continue to rise?

好的，了解。那接下來我們該如何看待 OpEx（營運費用）的走勢？至少就我模型來看，這次略高一些。這會是今年剩餘期間的合理 run rate 嗎？還是因為你們仍在國際團隊擴編以及新的 Phoenix 中心建置，費用會繼續上升？

We expect it to be in the range of this quarter. As we continue to invest, it will be a slight rise, but it will be in this range of the current quarter.

我們預期會落在與本季相近的區間。隨著我們持續投資，會小幅上升，但仍會在本季這個區間內。

Perfect. And then just 2 quick ones on the steel side. Is there any perspective you can give in terms of lower steel usage in terms of pounds or kilograms per unit over time? Is there an ability to take steel out of the unit? That's question one.

很好。再來鋼材方面兩個快問。第一個：就每台（unit）隨時間推進，鋼材用量（以磅或公斤計）降低這件事，你們能提供任何觀點嗎？是否有能力把鋼材從產品中減量？

And then question 2 on the steel front. Is there inflation on the galvanization of the steel? So I think the 50% comment was the raw steel, but I wasn't sure in terms of your suppliers that are then galvanizing the steel for you. Is there cost inflation there as well?

第二個鋼材問題：鋼材的鍍鋅（galvanization）也有通膨嗎？我理解你提到的 50% 是指原鋼材，但我不確定你們供應商替你們做鍍鋅加工的部分，是否也有成本通膨？

Yes. Jeff, the galvanization is inclusive to the metrics that we gave you surrounding costs. And then to your former question surrounding alternative materials lighter, yes, that's part of our DNA when it comes to value engineering. We're always looking for opportunities to improve our bill of materials, making it more cost effective.

是的，Jeff，鍍鋅已包含在我們提供給你、關於成本的那些指標之中。至於你前一個問題、關於替代材料與更輕量化，是的，這是我們在價值工程（value engineering）上的 DNA 之一。我們一直在尋找機會改善物料清單（bill of materials），讓它更具成本效益。

At this time, we've reached end of our question-and-answer session. Now I'll turn the floor back to management for closing remarks.

目前問答環節到此結束。接下來我把時間交回管理層作結語。

Thank you, and thank you, everyone.

謝謝，也謝謝各位。

I'll just go back to the prepared remarks for the concluding statement here, and that is the headwinds we face from these commodity and shipping cost increases, we definitely feel we're well prepared and positioned and are executing to the plans that we have outlined. And solar remains to be very strong. We continue to build relationships with our customers and supplier, and we're going to continue to work with them on a daily basis.

我回到事先準備的講稿，做最後的結語：面對原物料與運輸成本上升帶來的逆風，我們確實感到我們已做好充分準備、具備良好定位，並正依照我們所闡述的計畫在執行。太陽能市場仍然非常強勁。我們持續與客戶及供應商建立關係，並將每天持續與他們合作。

So with that, we're fully committed. We certainly appreciate your time. And with that, I'll turn it back to the operator to close.

因此，我們全力投入。我們非常感謝各位的時間。接下來我把時間交回接線員結束會議。

Thank you. This will conclude today's conference. Thank you for your participation. You may now disconnect your lines at this time.

謝謝。今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話。