Canadian Solar Inc (CSIQ) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's Second-Quarter 2024 Earnings Conference Call. My name is Rob and I'll be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

女士們先生們，謝謝你們的支持。歡迎參加阿特斯陽光電力 2024 年第二季財報電話會議。我叫羅布，今天我將擔任您的接線生。此時，所有參與者都處於只聽模式。隨後，我們將進行問答環節。謹此提醒，本次會議正在錄製以供重播。

I would now like to turn the call over to Wina Huang, Head of Investor Relations at Canadian Solar. Please go ahead.

我現在想將電話轉給阿特斯陽光電力投資者關係主管 Wina Huang。請繼續。

Thank you, operator, and welcome, everyone, to Canadian Solar's second quarter 2024 conference call. Please note that today's conference call is accompanied with slides, which are available on Canadian Solar's Investor Relations website within the Events and Presentation section.

謝謝業者，歡迎大家參加阿特斯陽光電力 2024 年第二季電話會議。請注意，今天的電話會議附有幻燈片，可在阿特斯陽光電力投資者關係網站的「活動和簡報」部分中查看。

Joining us today are Dr. Shawn Qu, Chairman and CEO; Yan Zhuang, President of Canadian Solar subsidiary CSI Solar; Ismael Guerrero, Corporate VP and President of Canadian Solar subsidiary Recurrent Energy; and Xinbo Zhu, Senior VP and CFO.

今天加入我們的有董事長兼執行長瞿曉光博士；莊岩，阿特斯陽光電力子公司CSI Solar總裁； Ismael Guerrero，阿特斯陽光電力子公司 Recurrent Energy 公司副總裁兼總裁；朱新波，資深副總裁兼財務長。

All company executives will participate in the Q&A session after management's formal remarks. On this call, Shawn will go over some key messages for the quarter. Yan and Ismael will review business highlights for CSI Solar and Recurrent Energy, respectively, and Xinbo will go through the financial results. Shawn will conclude his prepared remarks with the business outlook, after which we will have time for questions.

在管理階層正式發言後，所有公司主管將參加問答環節。在這次電話會議上，肖恩將回顧本季的一些關鍵訊息。Yan和Ismael將分別回顧CSI Solar和Recurrent Energy的業務亮點，而鑫博將審查財務業績。肖恩將以商業前景結束他準備好的發言，之後我們將有時間提問。

Before we begin, I would like to remind listeners that management's prepared remarks today, as well as their answers to questions, will contain certain forward-looking statements that are subject to risks and uncertainties. The company claims protection under the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. Any projections of the company's future performance represent management's estimates as of today.

在我們開始之前，我想提醒聽眾，管理層今天準備的演講以及他們對問題的回答將包含某些前瞻性陳述，這些陳述存在風險和不確定性。該公司聲稱受到 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述安全港的保護。實際結果可能與管理層目前的預期有所不同。對公司未來業績的任何預測均代表管理層截至目前的估計。

Canadian Solar assumes no obligation to update these projections in the future unless otherwise required by applicable law. A more detailed discussion of risks and uncertainties can be found in the company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.

除非適用法律另有要求，阿特斯陽光電力沒有義務在未來更新這些預測。有關風險和不確定性的更詳細討論，請參閱該公司向美國證券交易委員會提交的 20-F 表格年度報告。

Management's prepared remarks will be presented within the requirements of SEC Regulation G regarding generally accepted accounting principles, or GAAP. Some financial information presented during the call will be provided on both a GAAP and non-GAAP basis. By disclosing certain non-GAAP information, management intends to provide investors with additional information to enable further analysis of the company's performance and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. Non-GAAP information should not be viewed by investors as a substitute for data provided -- prepared in accordance with GAAP.

管理層準備好的評論將按照 SEC G 條例有關公認會計原則 (GAAP) 的要求進行呈現。電話會議期間提供的一些財務資訊將根據公認會計原則和非公認會計原則提供。透過披露某些非公認會計原則信息，管理層打算向投資者提供更多信息，以便進一步分析公司的業績和基本趨勢。管理層使用非公認會計準則衡量標準來更好地評估營運績效並制定營運目標。投資者不應將非公認會計準則資訊視為所提供資料（根據公認會計準則準備）的替代品。

And now, I would like to turn the call over to Canadian Solar Chairman and CEO, Dr. Shawn Qu. Shawn, please go ahead.

現在，我想將電話轉給阿特斯陽光電力董事長兼執行長瞿曉光博士。肖恩，請繼續。

Thank you, Wina, and thank you all for joining our second quarter call today. Please turn to slide three. In the second quarter, we delivered strong results. We shipped 8.2 gigawatts of solar modules, surpassing our previous guidance of 7.5 gigawatts to 8 gigawatts. While increasing volume, we maintained competitive average selling prices, resulting in revenue of $1.6 billion and a gross margin of 17.2%, both in line with our previous -- both in line with our guidance.

謝謝你，威娜，也謝謝大家今天參加我們的第二季電話會議。請翻到幻燈片三。第二季度，我們取得了強勁的業績。我們的太陽能組件出貨量為 8.2 吉瓦，超過了我們之前 7.5 吉瓦至 8 吉瓦的指導值。在增加銷量的同時，我們保持了具有競爭力的平均銷售價格，從而實現了 16 億美元的收入和 17.2% 的毛利率，兩者均與我們之前的預期一致，均符合我們的指導。

Over the past few months, we have observed signs of market rationalization. Record low prices are driving out uncompetitive players. Meanwhile, our industry peers re-announced significant first-half losses. In comparison, we have performed well, striking a delicate balance between volume and profitability. I'm proud of what we have accomplished in one of the most challenging industry cycles I have experienced in my career. The underlying fundamentals of solar remain robust.

過去幾個月，我們觀察到市場理性化的跡象。創紀錄的低價正在趕走沒有競爭力的參與者。同時，我們的同業再次宣布上半年出現重大虧損。相比之下，我們表現良好，在銷售和獲利能力之間取得了微妙的平衡。我為我們在職業生涯中經歷過的最具挑戰性的行業週期之一所取得的成就感到自豪。太陽能的基本面依然強勁。

As I have mentioned before, AI-driven data center expansion, electric vehicles, cryptocurrency, and other emerging technologies will generate substantial demand for clean energy. Solar and energy storages will also contribute -- will also continue to be a major trend. We must not forget that the distance to meeting our global climate goals remain large.

正如我之前提到的，人工智慧驅動的資料中心擴張、電動車、加密貨幣和其他新興技術將產生對清潔能源的大量需求。太陽能和儲能也將做出貢獻——也將繼續成為主要趨勢。我們絕不能忘記，實現全球氣候目標的距離仍然很遠。

However, the challenges ahead should not be underestimated. It will take time to rebalance supply and demand in solar given that today's industry competitors have more scale and resilience than ever before. How will we navigate a potentially extended downturn?

然而，未來的挑戰不應被低估。鑑於當今的行業競爭對手比以往任何時候都更具規模和彈性，重新平衡太陽能供需需要時間。我們將如何應對可能持續的經濟低迷？

Please turn to slide 4. Canadian Solar is a diversified business with complementary divisions that enable us to not only weather, but also succeed in this challenging industry landscape. Today, our module business has reached an optimal scale, large enough to maintain a highly competitive cost structure, yet lean enough to adapt swiftly to changes in industry dynamics.

請翻到幻燈片 4。阿特斯陽光電力是一家多元化企業，擁有互補的部門，使我們不僅能夠應對這一充滿挑戰的行業格局，而且能夠取得成功。如今，我們的組件業務已達到最佳規模，足以維持極具競爭力的成本結構，同時又足夠精簡，能夠迅速適應產業動態的變化。

Our approach to capacity investment has always been (technical difficulty) carefully balancing vertical integration, the right technology mix, and magnitude. At the same time, we are positioning ourselves for sustainable growth through our rapidly expanding energy storage segment, a business for which we began laying the foundation 10-years ago. We are on track to grow by more than 500% this year, and we are doing so at industry-leading margins.

我們的產能投資方法一直是（技術難度）仔細平衡垂直整合、正確的技術組合和規模。同時，我們正在透過快速擴張的能源儲存領域實現永續成長，我們在 10 年前就開始為這項業務奠定基礎。今年我們的成長預計將超過 500%，而且我們的利潤率處於行業領先水平。

Wood Mackenzie has forecasted accumulated energy storage base of 1 terawatt hour by 2027. We have the expertise to grow alongside this market. Complementing our global manufacturing expertise in both solar and energy storage are our outstanding business teams. These local experts have enabled us to develop both global operations and a truly global brand.

Wood Mackenzie 預測，到 2027 年，累積儲能基礎將達到 1 太瓦時。我們擁有與這個市場共同成長的專業知識。我們優秀的業務團隊補充了我們在太陽能和儲能領域的全球製造專業知識。這些當地專家使我們能夠發展全球業務並建立真正的全球品牌。

Finally, our project development platform, Recurrent Energy, is poised to deliver additional long-term value as it transitions to be a global developer, owner, and operator of solar and storage assets. A key element of our growth strategy is to do so sustainably and ethically.

最後，我們的專案開發平台 Recurrent Energy 預計將在轉型成為太陽能和儲存資產的全球開發商、所有者和營運商的過程中提供額外的長期價值。我們成長策略的關鍵要素是以可持續和道德的方式實現這一目標。

Please turn to slide 5. In May, we proudly published our latest Corporate Sustainability Report, which features expanded disclosures and enhanced transparency. Highlighting a few achievements, in 2023, Canadian Solar achieved reductions in greenhouse gas emissions by 37%, energy consumption also by 37%, water usage by 72%, and waste intensity by 54%, compared to the level in 2017.

請翻到投影片 5。五月，我們很自豪地發布了最新的企業永續發展報告，其中擴大了揭露範圍並提高了透明度。值得一提的是，與2017 年相比，2023 年阿特斯陽光電力的溫室氣體排放量減少了37%，能源消耗量減少了37%，用水量減少了72%，廢棄物強度減少了54% 。

Additionally, we remain on track to meet our target of power in all global operations with 100% renewable energy by 2030. As we have consistently emphasized, ethical labor practices are of utmost importance to us, both within our operations and throughout our supply chain.

此外，我們仍有望實現 2030 年在全球所有業務中使用 100% 再生能源的電力目標。正如我們一直強調的那樣，道德勞工實踐對我們至關重要，無論是在我們的營運中還是在整個供應鏈中。

As a participant in the United Nations Global Compact, which we adhere to the UNGC's 10 principles of human rights, labor practices, environmental protection, and business ethics to ensure the integrity of our operations and supply chain.

作為聯合國全球契約的參與者，我們遵守 UNGC 的人權、勞工實踐、環境保護和商業道德 10 項原則，以確保我們的營運和供應鏈的完整性。

We also engage with responsible business alliances to conduct validated assessment program's audit at our facilities and those of our suppliers. The RBA VAP audit is an industry-leading standard for onsite manufacturing evaluations assessing labor practices, health and safety, environmental impact, ethics, and management systems.

我們也與負責任的商業聯盟合作，對我們的工廠和供應商的工廠進行經過驗證的評估計劃審核。RBA VAP 審核是業界領先的現場製造評估標準，用於評估勞工實踐、健康與安全、環境影響、道德和管理系統。

Finally, we remain committed to promoting diversity, equity, and inclusion at Canadian Solar will foster a productive workforce that benefits from diversed perspectives in decision-making processes. Our newly included gender pay analysis revealed that women at Canadian Solar earned 95% of what men earned in 2023, with the remaining 5% gap deemed equitable.

最後，我們仍然致力於促進阿特斯陽光電力的多元化、公平性和包容性，這將培養一支富有成效的員工隊伍，讓他們從決策過程中的多元化觀點中受益。我們新納入的性別薪資分析顯示，到 2023 年，阿特斯陽光電力的女性收入是男性的 95%，其餘 5% 的差距被認為是公平的。

In conclusion, I'm pleased with our achievements in the second quarter and the first-half of this year. We have demonstrated the resilience of our business in challenging circumstances and remain vigilant in our work moving forward.

總之，我對今年第二季和上半年的成績感到滿意。我們在充滿挑戰的環境中展示了我們業務的韌性，並在前進的工作中保持警惕。

I will now turn the call over to Yan, who will provide more details on our CSI Solar business. Yan, please go ahead.

我現在將把電話轉給嚴，他將提供有關我們 CSI Solar 業務的更多詳細資訊。嚴，請繼續。

Thank you, Shawn. Please turn to slide 6. In the second quarter of 2024, we shipped 8.2 gigawatts of modules, marking a 30% quarter-over-quarter growth. We generated revenue of $1.7 billion and achieved a gross margin of 16.7%.

謝謝你，肖恩。請翻到幻燈片 6。2024年第二季度，我們的組件出貨量為8.2吉瓦，季增30%。我們創造了 17 億美元的收入，毛利率為 16.7%。

Despite the industry facing record losses, CSI Solar delivered an operating income of $93 million. Our revenue and profitability were bolstered by strong performance in North America, which accounted for approximately 30% of our shipments. In most other regions, average selling prices remain challenging. We managed our orders stringently. This coupled with a reduction in cost, supported our financial performance.

儘管該行業面臨創紀錄的虧損，CSI Solar 仍實現了 9,300 萬美元的營業收入。我們的營收和獲利能力得益於北美地區的強勁表現，北美地區約占我們出貨量的 30%。在大多數其他地區，平均售價仍然具有挑戰性。我們嚴格管理我們的訂單。再加上成本的降低，支持了我們的財務表現。

To walk through key drivers of our Module business, please turn to slide seven. Alongside the rapid decline in polysilicon prices, the entire supply chain is under pressure leading to continued cost reductions. While this trend may initially seem concerning, it highlights the advantages of our partial vertical integration. We can flexibly source upstream materials at prices that enhance our competitive cost structure.

若要了解我們模組業務的關鍵驅動因素，請參閱幻燈片七。隨著多晶矽價格的快速下跌，整個供應鏈面臨成本持續下降的壓力。雖然這一趨勢乍看之下可能令人擔憂，但它凸顯了我們部分垂直整合的優勢。我們可以靈活地以增強我們成本結構競爭力的價格購買上游材料。

In line with our flexible strategic manufacturing approach, we're moderating our capacity expansion plans to capitalize on current market conditions. Specifically, we intend to delay upstream investments until a more opportune window, reducing our planned capital expenditures this year, thanks to our ongoing technological advancements, N-type TOPCon costs are now nearly aligned with those of PERC.

根據我們靈活的策略製造方法，我們正在調整產能擴張計劃，以適應當前的市場狀況。具體來說，我們打算推遲上游投資，直到更合適的時機，減少今年計畫的資本支出，得益於我們不斷的技術進步，N型TOPCon成本現在幾乎與PERC持平。

Today, TOPCon technology is an industry standard, offering lower levelized cost of energy compared to mass-produced non-crystalline technologies. This means our customers benefit from using less land, installing fewer trackers, reducing end-of-life disposal costs and more.

如今，TOPCon 技術已成為業界標準，與大量生產的非晶技術相比，可提供更低的能源成本。這意味著我們的客戶受益於使用更少的土地、安裝更少的追蹤器、降低報廢處理成本等等。

As I mentioned, our US business remains strong, with higher volumes delivered at competitive prices in the second quarter, compared to the first. We currently have contracts signed and under active negotiations through to 2030.

正如我所提到的，我們的美國業務仍然強勁，與第一季相比，第二季以具有競爭力的價格交付了更多數量。目前，我們已簽署並正在積極談判直至 2030 年的合約。

In the US bankability is even more critical than in other markets, and customers prefer to buy from a select group of Tier 1 suppliers where trust and proven track record are paramount. As in the past during periods of uncertainty, we continue to actively service the US market.

在美國，可融資性比其他市場更為重要，客戶更喜歡從精選的一級供應商購買產品，這些供應商的信任和良好的業績記錄至關重要。與過去一樣，在不確定時期，我們繼續積極服務美國市場。

In addition, we are investing over $1 billion in the US to ramp up two state-of-the-art and highly competitive manufacturing facilities. One facility is already producing solar modules in Mesquite, Texas, while the other will manufacture solar cells in Jeffersonville, Indiana.

此外，我們還在美國投資超過 10 億美元，以建造兩座最先進且極具競爭力的製造工廠。一家工廠已在德克薩斯州梅斯基特生產太陽能組件，另一家工廠將在印第安納州傑斐遜維爾生產太陽能電池。

Together, those -- these facilities will create more than 2,500 American manufacturing jobs. As a domestic manufacturer, we believe that regulatory certainty and clarity are essential for maintaining a long-term resilient solar industry in the United States.

這些設施加起來將為美國創造超過 2,500 個製造業就業機會。作為國內製造商，我們認為監管的確定性和清晰度對於維持美國太陽能產業的長期彈性至關重要。

Now turning to our e-STORAGE business, please go to slide 8. In the second quarter, we continued to achieve record shipments, delivering approximately 1.5 gigawatt hours globally. Our backlog continues to grow and now stands at $2.6 billion.

現在轉向我們的電子儲存業務，請轉到幻燈片 8。第二季度，我們繼續創下出貨量紀錄，全球交付量約為 1.5 吉瓦時。我們的積壓訂單持續成長，目前已達 26 億美元。

Our key markets include the United States, where we have a longstanding track record across all our businesses, as well as the United Kingdom, Australia, Canada, and other countries we're entering as we expand the business.

我們的主要市場包括美國，我們在美國的所有業務都擁有長期的業績記錄，以及英國、澳洲、加拿大和其他我們在擴展業務時正在進入的國家。

One deal in our backlog that I would like to highlight is our contract with Nova Scotia Power to develop flagship energy storage projects across these -- across three locations in Nova Scotia, Bridgewater, Waverley, and White Rock. These projects, totaling more than 700 megawatt-hours, will play a crucial role in enhancing grid reliability and stability.

我想強調的一項積壓交易是我們與新斯科舍省電力公司簽訂的合同，旨在開發跨這些地區的旗艦儲能項目——橫跨新斯科舍省、布里奇沃特、韋弗利和白石的三個地點。這些項目總計超過700兆瓦時，將對提高電網的可靠性和穩定性發揮至關重要的作用。

As Canadians, we take pride in making a significant environmental impact at home, contributing to both provincial and federal targets of achieving 80% renewable energy by 2030. The growth potential for e-STORAGE is immense. As of June 30, 2024, our total project turnkey pipeline for e-STORAGE stands at approximately 66 gigawatt hours.

身為加拿大人，我們為在國內產生重大環境影響而感到自豪，為省和聯邦到 2030 年實現 80% 再生能源的目標做出了貢獻。e-STORAGE 的成長潛力巨大。截至 2024 年 6 月 30 日，我們的 e-STORAGE 專案交鑰匙管道總容量約為 66 吉瓦時。

This pipeline includes both contracted and in-construction projects as well as projects in various stages of negotiation. Moving forward, we expect to continue growing volume at healthy margins with the support of our energy storage segment and the continued strategic management of our Module business, we anticipate the second half of the year to be stronger than the first.

該管道包括已簽約和在建項目以及處於各個談判階段的項目。展望未來，我們預計，在我們的儲能部門的支持和對我們模組業務的持續策略管理的支持下，銷售將繼續以健康的利潤率增長，我們預計今年下半年將強於上半年。

Now, I will hand it over to Ismael to provide an overview of Recurrent Energy, Canadian Solar's global project development business. Ismael, please go ahead.

現在，我將交給 Ismael 介紹阿特斯陽光電力全球專案開發業務 Recurrent Energy 的概況。伊斯梅爾，請繼續。

Thank you, Yan. Please turn to slide nine. Second quarter results were relatively modest, with no major project sales. We generated $50 million in revenue with a gross margin of 47.4%. During our transition to a model focused on accumulating operating assets, project sales will be lighter.

謝謝你，嚴。請翻到幻燈片九。第二季業績相對溫和，沒有重大專案銷售。我們創造了 5000 萬美元的收入，毛利率為 47.4%。在我們轉型為以累積營運資產為主的模式期間，專案銷售將會較輕。

In the second-half due to policy changes in Europe, our projects will experience delays between one to two quarters in Spain and longer in Italy, depending on the region. While in the US, we obtain approval on several projects. We also anticipate potential interconnection delays in certain parts of the US These risks we will continue to manage through our hybrid developer, owner, and operator business model with global presence.

下半年，由於歐洲政策變化，我們的專案在西班牙將延遲一到兩個季度，在義大利則延遲更長時間，具體取決於地區。在美國期間，我們的多個項目獲得了批准。我們也預期美國某些地區可能出現互連延遲。

Since the announcement of BlackRock's $500 million investment in January, we have made significant progress securing the requisite regulatory approvals and meeting internal operating milestones. We are pleased to have announced the initial closing representing $300 million of the planned capital infusion. A key aspect of the growth expected from this transaction is our ability to secure the financing needed to support the construction and monetization of our high-value pipeline projects.

自 1 月貝萊德宣布投資 5 億美元以來，我們在獲得必要的監管批准和實現內部營運里程碑方面取得了重大進展。我們很高興地宣布初步交割金額相當於計劃注資的 3 億美元。此次交易預期成長的關鍵方面是我們獲得支持高價值管道項目建立和貨幣化所需融資的能力。

Over the past few months, we continue to obtain competitive financing at both the operational and construction levels. In May, we secured a landmark multi-currency revolving credit facility valued at up to EUR1.3 billion involving 10 banks to support the construction of renewable energy projects across several European countries.

在過去的幾個月裡，我們繼續在營運和建設層面獲得有競爭力的融資。5 月，我們獲得了一項價值高達 13 億歐元、涉及 10 家銀行的具有里程碑意義的多貨幣循環信貸額度，以支持多個歐洲國家的可再生能源項目建設。

In June, we obtained $513 million in project financing for our 1.2 gigawatt-hour storage project in Maricopa County, Arizona. Papago Storage is the largest energy storage project in Arizona and holds a 20-year tolling agreement with Arizona Public Service Company. The battery energy storage system used for this historic project is sourced from Canadian Solar's e-STORAGE division.

6 月，我們為亞利桑那州馬里科帕縣的 1.2 吉瓦時儲能計畫獲得了 5.13 億美元的專案融資。Papago Storage是亞利桑那州最大的儲能項目，與亞利桑那州公共服務公司簽訂了為期20年的收費協議。這個歷史性計畫使用的電池儲能係統來自阿特斯陽光電力的 e-STORAGE 部門。

Also in June, we closed a $103 million tax credit facilitation agreement with Bank of America for our 160 megawatt North Fork Solar project, which is already in operation. This transaction marks our first production tax credit deal and exemplifies our ability to execute globally to optimize our funding access.

同樣在 6 月，我們與美國銀行就 160 兆瓦的 North Fork 太陽能專案達成了一項 1.03 億美元的稅收抵免便利協議，該專案已經投入運作。這項交易標誌著我們的首筆生產稅收抵免交易，並證明了我們在全球範圍內執行以優化融資管道的能力。

Please turn to slide 10. We continue to lay the groundwork for long-term shareholder value. We have expanded our total development pipeline to 27 gigawatts of solar and 63 gigawatt hours of battery energy storage. Our pipeline is valuable not only for its scale and geographical diversity but also because of the interconnections we can secure and the competitive PPAs we negotiate with top-tier counterparties.

請翻到投影片 10。我們繼續為長期股東價值奠定基礎。我們已將太陽能開發總量擴大到 27 吉瓦，電池儲能容量達到 63 吉瓦。我們的管道的價值不僅在於其規模和地理多樣性，還在於我們可以確保的互連以及我們與頂級交易對手談判的具有競爭力的購電協議。

For example, we recently signed a 10-year PPA with GKN Automotive, a global leader in drive systems. This agreement will facilitate the annual production of approximately 200 gigawatt hours of renewable electricity and marks GKN Automotive's first renewable energy PPA in Europe.

例如，我們最近與全球驅動系統領導者 GKN Automotive 簽署了為期 10 年的購電協議。該協議將促進每年約 200 吉瓦時的可再生電力生產，並標誌著吉凱恩汽車公司在歐洲的首個再生能源購電協議。

Across the world in Japan, we entered into a 20-year PPA with Toyota Tsusho Corporation to secure 100% of the solar power along with the non-fossil certificates generated by three of our solar projects. This accomplishment marked our first private PPA with Toyota Tsusho, a key member of the Toyota Group.

在世界各地的日本，我們與豐田通商公司簽訂了為期 20 年的購電協議，以確保 100% 的太陽能發電以及我們的三個太陽能專案產生的非化石能源證書。這項成就標誌著我們與豐田集團重要成員豐田通商的首個私人購電協議。

Recurrent Energy currently owns 1.6 gigawatts of projects in operation and 1.7 gigawatts under construction along with 1 gigawatt hour of best projects in operation and 3.8 gigawatt hours under construction. The vast majority of these projects are fully funded and secured with PPA contracts, positioning us to begin generating substantial revenues from 2025 onwards.

Recurrent Energy目前擁有1.6吉瓦在運項目和1.7吉瓦在建項目，以及1吉瓦時最佳營運項目和3.8吉瓦在建項目。這些項目絕大多數都獲得全額資助並透過 PPA 合約獲得擔保，這使我們能夠從 2025 年起開始產生大量收入。

Additionally, we have around 10 gigawatts of PV and 16 gigawatts hours of BESS with granted interconnections which are expected to be ready in the near term, driving significant growth. Our O&M business continues to grow steadily with 11 gigawatts of contracted projects, making it one of the largest operational fleets globally. This steady growth is supported by our own project portfolio, which provides clear visibility into future expansion.

此外，我們擁有約 10 吉瓦的光伏發電量和 16 吉瓦時的電池儲能係統（BESS），並已批准互連，預計將在短期內準備就緒，從而推動顯著增長。我們的維運業務持續穩定成長，簽約項目達到11吉瓦，成為全球最大的營運船隊之一。這種穩定的成長得到了我們自己的專案組合的支持，這為未來的擴張提供了清晰的可見性。

Now, let me hand it over to Xinbo, who will go through our financial results in more detail. Xinbo, please go ahead.

現在，讓我把它交給鑫博，他將更詳細地介紹我們的財務表現。鑫博，請繼續。

Thank you, Ismael. Please turn to slide 11. In the second quarter, we achieved revenue of $1.6 billion and a gross margin of 17.2%, both of which were in line with our guidance. The sequential increase in revenue was primarily due to a higher volume of solar module shipments, partially offset by a decline in Module ASP.

謝謝你，伊斯梅爾。請翻到投影片 11。第二季度，我們營收 16 億美元，毛利率 17.2%，均符合我們的指引。收入環比增長主要是由於太陽能組件出貨量增加，但部分被組件平均售價下降所抵消。

Gross margin decreased 180 basis points quarter-over-quarter, mainly due to lower Module prices. Total operating expenses in the second quarter increased to $434 million, primarily driven by higher shipping and handling expenses.

毛利率季減 180 個基點，主要是因為組件價格下降。第二季的總營運費用增加至 4.34 億美元，主要是因為運輸和裝卸費用增加。

Freight costs are likely to remain elevated in the second-half of the year, given the ongoing Red Sea issue and the industry's efforts to clear shipment backlogs from Asia to the United States and Europe.

鑑於持續存在的紅海問題以及該行業努力清理從亞洲到美國和歐洲的積壓貨物，下半年貨運成本可能會繼續保持高位。

Net interest returned to a normalized level in the second quarter following the absence of an interest benefit derived from the interest income generated by anti-dumping and the countervailing duty deposit refunds in the first quarter of 2024.

繼2024年第一季反傾銷和反補貼稅押金返還產生的利息收入沒有帶來利息收益後，第二季淨利息恢復到正常水準。

Net foreign exchange and derivative gains in the second quarter of [2024] amounted to $13 million, mainly driven by the weakening of the Chinese Yuan and the Japanese Yen against the US dollar.

[2024]第二季外匯及衍生性商品淨收益達1,300萬美元，主要是由於人民幣及日圓兌美元走弱。

Total net income was $27 million, while net income attributable to Canadian Solar was $4 million, or $0.02 per diluted share. Basic and diluted earnings per share included the Recurrent Energy redeemable preferred share dividends payable in kind that is associated with BlackRock's investment, resulting in an EPS effect of $0.03 deducted on the diluted basis.

淨利潤總額為 2,700 萬美元，阿特斯陽光電力應佔淨利為 400 萬美元，即稀釋後每股收益 0.02 美元。基本和稀釋每股盈餘包括與貝萊德投資相關的 Recurrent Energy 可贖回優先股實物股息，導致每股盈餘影響在稀釋基礎上扣除 0.03 美元。

Here I want to address the impact of the current energy's business model transformation on Canadian Solar's P&L in the near to mid-term. As recurrent transitions to a partial IPP model and accumulates more assets, two key effects will emerge.

這裡我想談談當前能源商業模式轉型對阿特斯陽光電力近中期損益的影響。隨著週期性向部分IPP模式的轉變並累積更多資產，將出現兩個關鍵效應。

First, recurring will sell fewer projects, leading to a lower contribution to Canadian Solar's P&L. Second, as more projects are retained on balance sheet, a greater portion of revenue and gross profit created by CSI Solar will be eliminated at the consolidated growth level. The unrealized CSI Solar revenue and gross profit on equipment sales to recurrent for those projects will be recognized gradually over the life of the project assets.

首先，經常性銷售將減少專案數量，導致阿特斯陽光電力對損益的貢獻降低。其次，隨著更多項目保留在資產負債表上，中證太陽能創造的收入和毛利的大部分將在合併成長水準上被抵消。這些項目的未實現的CSI Solar收入和經常性設備銷售毛利將在專案資產的使用壽命內逐步確認。

Due to these effects, during the transition period, Canadian Solar's P&L will be systematically and consistently lower than that of CSI Solar. While recurrent assets will deliver value longer term.

由於這些影響，在過渡期內，阿特斯陽光電力的損益將系統性地、持續地低於中證太陽能。而經常性資產將帶來長期價值。

Now let's discuss cash flow and the balance sheet. Please turn to slide 12. Net cash flow used in operating activities in the second quarter of 2024 was $429 million. The operating cash outflow was primarily driven by increased project assets, due for sale and increased accounts receivables, mainly associated with higher module sales during the second quarter.

現在讓我們討論現金流量和資產負債表。請翻到投影片 12。2024年第二季經營活動所使用的淨現金流量為4.29億美元。營運現金流出主要是由於待售項目資產增加以及應收帳款增加所致，這主要與第二季組件銷售增加有關。

Regarding that, going forward, CSI Solar and Recurrent Energy's leverage profiles will align with their respective strategic goals. This quarter, CSI Solar reduced its debt, optimizing its financial leverage to better navigate the industry cycle. Meanwhile, the current energy will continue to increase leverage in the near-term to support this transition to a partial IPP model.

就此而言，展望未來，CSI Solar 和 Recurrent Energy 的槓桿狀況將與其各自的策略目標保持一致。本季度，中證太陽能減少了債務，優化了財務槓桿，以更好地駕馭產業週期。同時，目前能源近期將繼續加槓桿，以支持向部分IPP模式轉型。

In summary, total financing at the half-year mark stood at $4.2 billion with a decrease at CSI Solar and a net increase at Recurrent Energy. In the second quarter, we spent approximately $390 million in manufacturing capital expenditures.

總而言之，上半年融資總額為 42 億美元，其中 CSI Solar 融資減少，Recurrent Energy 融資淨增加。第二季度，我們在製造資本支出上花費了約 3.9 億美元。

As Yan mentioned earlier, in light of market conditions, we are dialing back our upstream capacity plans. We have revised our full-year 2024 capital expenditure expectations downward to approximately $1.2 billion. We ended the period with a cash position of $2.2 billion, reflecting CSI Solar planned repayments, Recurrent Solar and storage asset growth, and change in working capital.

正如顏先生之前提到的，根據市場情況，我們正在縮減上游產能計畫。我們已將 2024 年全年資本支出預期下調至約 12 億美元。期末我們的現金部位為 22 億美元，反映了 CSI Solar 計畫還款、經常性太陽能和儲存資產成長以及營運資本的變化。

Lastly, I would like to speak to the private convertible bond announced on Monday. Please turn to slide 15. The rationale for this transaction is both financial and strategic. From a financial perspective, the notes provide us a versatile financing solution, offering a flexible drawdown schedule and the reasonable funding costs. From a strategic standpoint, we are pleased to welcome PAG as a new potential equity partner.

最後，我想談談週一宣布的私募可轉換債券。請翻到投影片 15。這次交易的理由既有財務上的，也有策略上的。從財務角度來看，票據為我們提供了多功能的融資解決方案，提供靈活的提款時間表和合理的融資成本。從策略角度來看，我們很高興歡迎 PAG 成為新的潛在股權合作夥伴。

Please turn to slide 14 for additional comments. With more than $55 billion in assets under management, PAG is among a select group of global investment managers with specialized capital pools across multiple asset classes dedicated to investing in renewable energy. PAG is an experienced investor in the solar sector. After acquiring the first solar Japan platform in 2022, it expanded its portfolio to over 600 megawatt across Japan. PAG is also the largest owner of distributed solar projects in Hong Kong.

請參閱投影片 14 以獲取更多評論。PAG 管理超過 550 億美元的資產，是精選的全球投資管理公司之一，擁有跨多個資產類別的專業資本池，致力於投資再生能源。PAG 是太陽能領域經驗豐富的投資者。2022 年收購日本第一個太陽能平台後，該公司將產品組合擴大到日本各地超過 600 兆瓦。太盟集團也是香港最大的分散式太陽能專案所有者。

PAG is well positioned to partner with CSIQ to strengthen the company's market leading position across the solar value chain. In key operating markets we anticipate that PAG will collaborate with Canadian Solar to explore and realize strategic synergies.

PAG 完全有能力與 CSIQ 合作，以加強該公司在整個太陽能價值鏈中的市場領先地位。在關鍵營運市場，我們預計 PAG 將與阿特斯陽光電力合作，探索並實現策略協同效應。

Now let me turn the call back to Shawn, who will conclude with our guidance and business outlook. Shawn, please go ahead.

現在讓我把電話轉回給肖恩，他將總結我們的指導和業務前景。肖恩，請繼續。

Thank you, Xinbo. Please turn to slide 15. For the third quarter of 2024, we expect solar module shipment by CSI Solar to be in a range of 9 gigawatts to 9.5 gigawatts, including approximately 100 megawatts of solar module shipment to our own project.

謝謝你，新博。請翻到投影片 15。2024年第三季度，我們預計CSI Solar的太陽能模組出貨量將在9吉瓦至9.5吉瓦之間，其中包括向我們自己的專案運送約100兆瓦的太陽能模組。

Total battery energy storage shipment are expected to be between 1.4 gigawatts to 1.7 gigawatt hours, including about 1.2 gigawatt hours for our own project. This significant volume to our own project is primarily for Papago Storage, a landmark project in Arizona developed by recurrent energy.

電池儲能總出貨量預計在1.4吉瓦至1.7吉瓦時之間，其中我們自己的專案約1.2吉瓦時。我們自己的專案中的這一重要容量主要用於 Papago Storage，這是亞利桑那州由循環能源開發的標誌性專案。

Total revenue are expected to be in a range of $1.6 billion to $1.8 billion. Gross margin is expected to be between 14% to 16%. At this midpoint of the year, we observed a second-half characterized by certain uncertainties, by some uncertainties. Given the potential extended period required for the supply-demand balance to normalize, module margins will continue to face pressure.

總收入預計在 16 億美元至 18 億美元之間。毛利率預計在14%至16%之間。在今年的這個中期，我們觀察到下半年有一定的不確定性。鑑於供需平衡恢復正常所需的時間可能較長，組件利潤率將繼續面臨壓力。

However, this is counterbalanced by the strength of our e-STORAGE business. e-STORAGE is expected to deliver record revenue and profitability in the fourth quarter, even after accounting for elimination of shipment to our own project. As such, we are revising our total solar module shipment guidance to be in a range of 32 gigawatts to 36 gigawatts, including 1 gigawatt to our own project.

然而，我們的電子倉儲業務的實力抵消了這一點。即使在考慮到我們自己專案的發貨量被取消後，e-STORAGE 預計將在第四季度實現創紀錄的收入和盈利能力。因此，我們正在將太陽能組件總出貨量指引修改為 32 吉瓦至 36 吉瓦，其中包括我們自己專案的 1 吉瓦。

CSI Solar's battery storage shipment are expected to be between 6.5 gigawatt to 7 gigawatt hours, including approximately 2.5 gigawatt hours to our own projects. We expect full-year revenue to be in a range of $6.5 billion to $7.5 billion. These revised forecasts reflect our continued commitment to our strategy of prioritizing profitability and driving sustainable growth.

CSI Solar的電池儲存出貨量預計在6.5吉瓦至7吉瓦時之間，其中包括我們自己專案的約2.5吉瓦時。我們預計全年收入將在 65 億美元至 75 億美元之間。這些修訂後的預測反映了我們對優先考慮獲利能力和推動永續成長策略的持續承諾。

With that, I would like to open the floor for questions. Operator?

現在我想開始提問。操作員？

At this time we'll be conducting a question-and answer-session. (Operator Instructions)

此時我們將進行問答會議。（操作員說明）

Colin Rusch, Oppenheimer.

科林‧魯施，奧本海默。

Thanks so much guys. You know with -- new AD/CVD charters can you talk a little bit about how you're expecting the sales and distribution cost to trend to the balance of the year? And just on a percentage of revenue would be so powerful?

非常感謝你們。您知道 - 新的 AD/CVD 章程您能談談您預計銷售和分銷成本將如何趨於今年的平衡嗎？光是收入的一個百分比就能如此強大嗎？

Yes, Colin, I don't know which AD/CVD you referred to. If you refer to the new AD/CVD petition for the four South Eastern Asian country, then we have to wait. We have to wait for the -- at least for the preliminary ruling expected in October and then November. So it's difficult for me to speculate the impact of that AD/CVD case at this moment.

是的，Colin，我不知道你指的是哪一種 AD/CVD。如果您參考東南亞四個國家的新 AD/CVD 請願書，那麼我們必須等待。我們必須等待——至少等待預計在 10 月和 11 月做出的​​初步裁決。所以我現在很難推測 AD/CVD 案件的影響。

Maybe we can take it offline, but the question is really around how are you accruing for that in the meantime as you bring products into the country? Alright, let me take that one offline.

也許我們可以將其離線，但問題實際上是當您將產品帶入該國的同時您如何獲得收益？好吧，讓我把那個離線。

The second question then is really around -- go ahead.

那麼第二個問題確實存在──繼續吧。

(technical difficulty) is at the end, so let me answer your question. So in the meantime, we actually work with our customers on the conditioning price mechanism, so both sides are protected with the assumption of different tariff level. So we are actually doing this as usual at the moment. So that's what we do right now.

（技術難度）就在最後，我來回答你的問題。因此，同時，我們實際上與客戶就調節價格機制進行合作，因此雙方都受到不同關稅水平假設的保護。所以我們目前實際上正在像往常一樣這樣做。這就是我們現在所做的。

Okay, thanks guys. And then, you know, you guys have had a history of being flexible with the market in terms of building out capacity and managing margins around where best returns are? And you've still got a very strong distribution business in a number of countries.

好的，謝謝大家。然後，你們知道，你們在圍繞最佳回報進行產能建設和管理利潤方面一直對市場保持靈活態度？而且您在許多國家仍然擁有非常強大的分銷業務。

Can you talk a little bit about the dynamics for that distribution business as you've seen some of the kind of disruption that's happened in that distribution channel here in the last couple of years? And how you see that opportunity evolving for your distribution business? Is that something you can grow into or are you still managing a lot of relationships and kind of working somewhere at some point?

您能否談談該分銷業務的動態，因為您已經看到過去幾年該分銷管道中發生的一些破壞？您如何看待您的經銷業務的這一機會？這是你可以成長的事情，還是你仍然在管理很多關係並在某個時候在某個地方工作？

Yes, so distribution business has always been our strong channel and they continue to be strong. Actually, we anticipate this year more than half of the volume goes to the DG market. That include residential rooftop and the CNI rooftop market.

是的，所以分銷業務一直是我們強大的管道，並且將繼續保持強勁。事實上，我們預計今年一半以上的產量將流向 DG 市場。其中包括住宅屋頂和 CNI 屋頂市場。

And in particular, I would say, we're even under the current situation with a very low price, in the market price of module, We're doing well in the US, for example, on the distribution channel, and we're doing well in Japan.

特別是，我想說，即使在目前的情況下，我們的模組市場價格非常低，我們在美國做得很好，例如在分銷管道上，我們在日本過得很好。

And we even started our bundling business, bundle module, and residential storage and inverters in the channel to enhance our margin. So long-term wise, we will expand that bundling business in different markets and has proven to be a very profitable way of conducting sales by providing solutions.

我們甚至在通路中開始了捆綁業務，捆綁模組、住宅儲存和逆變器，以提高我們的利潤率。從長遠來看，我們將在不同市場擴展捆綁業務，事實證明，透過提供解決方案進行銷售是一種非常有利可圖的方式。

Okay, thanks guys.

好的，謝謝大家。

Philip Shen, Roth Capital.

菲利普·沉，羅斯資本。

Hey guys, Thanks for taking my questions. First one is on the '24 guide. Can you share some additional color on what drove the latest 2024 shipment reduction? Was the main impact driven by the Southeast Asia AD/CVD tariff process? I know the tariffs have not come out yet, but there is uncertainty.

嘿夥計們，感謝您回答我的問題。第一個是 '24 指南。您能否分享一些關於 2024 年最新出貨量減少的原因？主要影響是由東南亞 AD/CVD 關稅進程推動的嗎？我知道關稅還沒出來，但存在不確定性。

And so just with the petition filed, did that slow business and the willingness of customers to receive modules? And if it wasn't that then was the driver you know more driven or more the -- just the global slowdown that we're seeing? Thanks.

那麼，提交請願書後，業務和客戶接收模組的意願是否會下降？如果不是這樣，那麼你認識的司機是否更有動力，或者只是我們所看到的全球經濟放緩？謝謝。

Yes, Philip this is Shawn. The new guidance is not because of the new AD/CVD case in -- for our South Eastern countries. It's rather for other markets. For US-funded shipments, we are more or less on target with our previous target.

是的，菲利普，這是肖恩。新的指導意見並不是因為我們東南部國家出現了新的 AD/CVD 病例。這是針對其他市場的。對於美資出貨量，我們或多或少達到了先前的目標。

There's not much impact. And as you know, the preliminary decision for the new AD/CVD is only expected in October and November, so it's rather late. So you won't have much impact to the total annual shipment. So the impact is really from the other market.

沒有太大影響。如你所知，新 AD/CVD 的初步決定預計要到 10 月和 11 月才能做出，所以現在已經很晚了。因此，您不會對年度總出貨量產生太大影響。所以影響確實來自其他市場。

Now, as we mentioned, every time in earning call, we want to strike a balance between shipment volume and profit. In other words, we don't want to lose money just to sustain or to achieve a shipment numbers. So we look at the current situation.

現在，正如我們所提到的，每次在財報電話會議中，我們都希望在出貨量和利潤之間取得平衡。換句話說，我們不想僅僅為了維持或實現出貨量而虧損。所以我們看看目前的情況。

But as you know, our shipment has been going up every quarter, quarter-by-quarter. The first quarter we delivered, I think, 6.3 gigawatts, and second quarter 8.2 gigawatts, and third quarter, we just guided 9 gigawatts to 9.5 gigawatts. So actually, we have stabilized our sales channels.

但如您所知，我們的出貨量每季都在成長。我認為，第一季我們交付了 6.3 吉瓦，第二季度交付了 8.2 吉瓦，第三季我們剛剛指導了 9 吉瓦到 9.5 吉瓦。所以實際上我們已經穩定了我們的銷售管道。

And we are getting back with more and more orders. We'll still be able to protect our profitability. But still, we are already at the second-half of August. And in order to strike a balance between the volume and profitability, we have taken actions.

我們帶著越來越多的訂單回來了。我們仍然能夠保護我們的獲利能力。但現在已經是八月下半月了。為了在銷售和獲利之間取得平衡，我們採取了行動。

So we look at how much we can reasonably ship, while still maintain the profitability. Then we decide the new guidance, the new shipment range as a reasonable estimate, is a reasonable update.

因此，我們會考慮在保持盈利能力的同時，我們可以合理地發貨多少。然後我們決定新的指導，新的出貨範圍作為一個合理的估計，是一個合理的更新。

Great. Okay, Thank you, Shawn. Can you share any color on a potential recurrent IPO timeline? Additionally, are you thinking about spinning off the e-STORAGE business as well? And then finally, related to e-STORAGE, do you plan on building a battery cell pack line in the US? And how much solar cell capacity? Well, you guys talked about how much you have in the US now. How much more could it be? How much more could you grow it? Sorry for so many questions in a row, but thank you.

偉大的。好的，謝謝你，肖恩。您能否分享一下潛在的定期 IPO 時間表？此外，您是否也考慮剝離 e-STORAGE 業務？最後，與 e-STORAGE 相關，您是否計劃在美國建立電池組生產線？太陽能電池容量是多少？好吧，你們談論了你們現在在美國有多少錢。還能多多少呢？你還能種植多少？抱歉連續問了這麼多問題，但還是謝謝。

Well, Philip, thanks for highlighting so much of the strengths of Canadian Solar. You see our strength in recurrent. You also see our strengths and differentiation in the storage. So thank you very much for seeing our strengths and seeing our differentiators.

好吧，菲利普，感謝您強調了阿特斯陽光電力的許多優勢。您會看到我們在經常性方面的實力。您還可以看到我們在儲存方面的優勢和差異化。非常感謝您看到我們的優勢和差異化優勢。

Now, we haven't talked about how to speculate this. However, we are moving to a partial IPP model as I, myself, Ismael, and Xinbo mentioned. And going through this model, you can reasonably speculate that at some point, we will look for a way to capitalize on what we accumulate and what we build. However, we just started this process.

現在，我們還沒有討論如何推測這一點。然而，正如我、我本人、伊斯梅爾和辛博所提到的，我們正在轉向部分 IPP 模式。透過這個模型，你可以合理地推測，在某個時候，我們將尋找一種方法來利用我們累積和建立的東西。然而，我們才剛開始這個過程。

So I would say to build a good IPP, it takes a couple of years. So I guess this is the indication of any capitalization plan for recurrence.

所以我想說，建立一個好的獨立發電廠，需要幾年的時間。所以我想這是任何重複資本化計劃的跡象。

Now e-STORAGE, we don't have a plan to spin off. e-STORAGE is an important and dynamic component of CSI Solar. So -- and it sit well in the CSI Solar family. So we don't have a plan there. Now, what's your next number three and number four question?

現在e-STORAGE，我們沒有分拆的計劃。 e-STORAGE 是 CSI Solar 的重要且充滿活力的組成部分。因此，它在 CSI Solar 家族中名列前茅。所以我們在那裡沒有計劃。現在，你的下一個第三和第四個問題是什麼？

Yes, so the next one is, do you plan on building battery cell and pack in the US? And then as it relates to US solar cell and module capacity. Just remind everybody what the capacity is today and what your plans are for expansion. And I think that's it. Thanks.

是的，那麼下一個問題是，你們計劃在美國生產電池和電池組嗎？然後是美國太陽能電池和組件產能。只需提醒大家目前的容量以及您的擴展計劃是什麼。我想就是這樣。謝謝。

Well, we plan. In other words, we have been studying the battery cell pack and the best production in US No question about that. However, we haven't made an announcement of any factories there. So I would not make an announcement today. Now for solar cell and solar module, the module capacity, it must be 5 gigawatts. The cell capacity in Jefferson Well, Indiana is also 5 gigawatts.

嗯，我們計劃一下。換句話說，我們一直在研究電池組和美國最好的生產，這是毫無疑問的。不過，我們還沒有宣佈在那裡有任何工廠。所以我今天不會發表聲明。現在對於太陽能電池和太陽能組件來說，組件容量必須是5吉瓦。印第安納州 Jefferson Well 的電池容量也為 5 吉瓦。

Great. Okay. Thanks. I'll pass it on.

偉大的。好的。謝謝。我會把它傳遞下去。

Thank you.

謝謝。

Praneeth Satish, Wells Fargo.

普拉尼思‧薩蒂什，富國銀行。

Thanks for taking my questions. So the guidance for the second-half, it sounds like you expect margins to be under pressure, because of the challenging market conditions and supply -- oversupply across the solar value chain? I guess when do you think things get back into balance? You have kind of an internal view there. And then at a high level, do you expect this challenging market conditions and margin weakness to extend into 2025?

感謝您回答我的問題。因此，下半年的指引聽起來您預期利潤率將面臨壓力，因為市場條件和供應充滿挑戰——整個太陽能價值鏈供應過剩？我想你認為事情什麼時候才能恢復平衡？你在那裡有一種內在的觀點。那麼從較高的層面來看，您預計這種充滿挑戰的市場環境和利潤疲軟的情況會持續到 2025 年嗎？

Yes, I would like to clarify that we see the margin for solar module business under pressure. However, we see a sustainable and healthy margin for our energy storage business. So overall, we still have confidence for the second-half of the year.

是的，我想澄清一下，我們認為太陽能模組業務的利潤率面臨壓力。然而，我們看到我們的儲能業務具有可持續和健康的利潤率。所以整體來說，我們對下半年還是有信心的。

Now, I will let Yan to make further comment, especially for the question of how long the pressure on the module business may continue.

現在，我將讓嚴進一步發表評論，特別是對於組件業務的壓力可能持續多久的問題。

So first of all, as Shawn has already mentioned, that we're going to have a strong Q4, a very strong Q4 on storage site. So we believe the pressure will continue throughout this year for sure, and it may carry into next year.

首先，正如肖恩已經提到的，我們將有一個強勁的第四季度，一個在儲存站點上非常強勁的第四季。因此，我們相信今年的壓力肯定會持續，並且可能會持續到明年。

So I'm not a magician. I cannot tell you when it's going to be recover. But we're already seeing it's actually reaching the bottom. So people are very careful on inventory control and we're seeing capacity are actually start to flushed out slowly. But it's going to accelerate we believe when we move into next year.

所以我不是魔術師。我無法告訴你什麼時候會恢復。但我們已經看到它實際上已經觸底。因此，人們對庫存控制非常謹慎，我們看到產能實際上開始慢慢耗盡。但我們相信，當我們進入明年時，它將會加速。

And for us we're going to have, continue to have a very healthy business on our storage moving to next year, significantly higher volume with a healthy margin. So, and we believe next year's module situations will further be stabilized. I don't think it's going to worsen than this year. So, overall speaking, we're still confident about our business next year.

對我們來說，我們的儲存業務將繼續保持非常健康的業務，到明年，銷售量將顯著提高，利潤率也可觀。因此，我們相信明年的組件情勢將進一步穩定。我認為情況不會比今年更糟。所以整體來說，我們對明年的業務還是有信心的。

Let me add additional colors. Yes, the weaker gross margin in Q3 is kind of fluctuation mostly, because of the gross margin recognition in Q3, you know, e-STORAGE is kind of system cell. And the revenue and profit recognition may fluctuate, because of cut-offs.

讓我添加額外的顏色。是的，第三季的毛利率走弱主要是一種波動，因為第三季的毛利率認可，你知道，e-STORAGE是一種系統細胞。由於中斷，收入和利潤確認可能會波動。

So we expect lower gross margin to be recognized in Q3. And as both Yan and Shawn mentioned, we confirm that even after elimination, we are going to deliver a stronger second-half of the year for e-STORAGE. So it implies a very robust Q4 for e-STORAGE.

因此，我們預計第三季毛利率將下降。正如 Yan 和 Shawn 所提到的，我們確認，即使在淘汰之後，我們也將為 e-STORAGE 帶來更強勁的下半年表現。因此，這意味著電子儲存第四季將非常強勁。

Okay, got it. So maybe just to be clear on that point for, as I know you haven't provided guidance for gross margin in Q4, but given the commentary around e-STORAGE being strong in Q4, the margin there is higher. Should we assume then that the gross margin increases potentially from Q3, the midpoint is 15% from Q3 to Q4?

好的，明白了。因此，也許只是為了明確這一點，據我所知，您尚未提供第四季度毛利率的指導，但鑑於第四季度有關 e-STORAGE 的評論強勁，因此毛利率更高。那麼我們是否應該假設毛利率從第三季開始可能會增加，從第三季到第四季的中點是15%？

Reasonable.

合理的。

Well, we're not providing Q4 gross margin yet, as you just mentioned. So it will take quite some computation to determine the gross margin range. So usually, we reserve it before the next earnings call.

嗯，正如您剛才提到的，我們還沒有提供第四季度的毛利率。因此，需要進行相當多的計算才能確定毛利率範圍。因此，通常我們會在下一次財報電話會議之前保留它。

So we already stated that we're going to have a stronger second-half than first-half.

所以我們已經說過，我們的下半場將會比上半場更強。

Okay. Now that makes that makes sense. Okay. Thank you, guys.

好的。現在這是有道理的。好的。謝謝你們，夥計們。

Vikram Bagri, Citi.

維克拉姆·巴格里，花旗銀行。

Thanks for taking the question. Could you give some insight into US module pricing more recently, we know that it's far higher than merchant pricing globally, but we've also seen an increase in module imports this year and quite a sharp increase so could you talk about how that impacts your domestic US module pricing compared to your imported volumes? Have you seen a big change or differential in the pricing in those two markets and that would be helpful.

感謝您提出問題。您能否介紹一下最近美國組件的定價，我們知道它遠高於全球商家的定價，但我們也看到今年組件進口量的增加，而且增長相當急劇，所以您能談談這對您的影響嗎？您是否看到這兩個市場的定價發生了重大變化或差異，這將會有所幫助。

Well, so we have a very healthy margin in the US on module side and we're actually growing our volume in the US, shipment to the US And so I think we see some price fluctuation. And however, the AD/CVD, the petition, actually, you know, making the price situation more complex.

嗯，所以我們在美國的模組方面有非常健康的利潤，我們實際上正在增​​加我們在美國的銷量，向美國的出貨量，所以我認為我們看到了一些價格波動。然而，AD/CVD、請願書，實際上，你知道，使價格情況變得更加複雜。

In general, we're seeing price trending up. So, you know, so with the impact of the AD/CVD. So still, we're confident from the deals we're signing up. We're actually quite confident that our margin in the US will continue to be healthy in Q3. And even in Q4, we have strong high confidence.

總的來說，我們看到價格呈現上升趨勢。所以，你知道，AD/CVD 的影響也是如此。儘管如此，我們對我們正在簽署的交易充滿信心。事實上，我們非常有信心我們在美國的利潤率在第三季將繼續保持健康。即使在第四季度，我們也有很強的信心。

Got it. That's helpful. Thank you. And just a question on the third quarter of guidance, could you give some color on what's driving that step up sequentially in the module shipment to that 9 gigawatt to 9.5 gigawatt range? Are there any specific regions that you're shipping to that are driving that? Just trying to understand that step up, especially in light of managing volumes against pricing?

知道了。這很有幫助。謝謝。關於第三季指引的一個問題，您能否詳細說明是什麼推動組件出貨量連續上升至 9 吉瓦至 9.5 吉瓦範圍？您要運送到的特定地區是否會推動這一趨勢？只是想了解這項進步，特別是考慮到根據定價管理數量？

Well, we have a volume increase in the US in Q3 and also in Europe slightly. And other than that, it's actually small changes, small increases. So it's actually in the end it's from 8.2 up to we give a range of 9 to 9.5. So it's like about a 1 gigawatt hour.

嗯，第三季美國的銷量增加，歐洲的銷量也略有增加。除此之外，它實際上是小的變化，小的增加。所以實際上最終它是從 8.2 到我們給出的範圍是 9 到 9.5。所以大約是 1 吉瓦時。

Got it. Thank you.

知道了。謝謝。

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

謝謝。現在我們的問答環節已經結束了。我將把發言權交還給管理階層作結束語。

Thank you for joining us today and for your continued support. If you have any questions or would like to set up a call, please contact our Investor Relations team. Take care and have a great day.

感謝您今天加入我們並感謝您的持續支持。如果您有任何疑問或想撥打電話，請聯絡我們的投資者關係團隊。保重，祝你有美好的一天。

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

今天的會議到此結束。感謝您的參與。此時您可以斷開線路。