Canadian Solar Inc (CSIQ) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's first quarter 2025 earnings call. My name is Sherry, and I will be your operator for today (Operator instructions) As a reminder, this conference is being recorded for replay purposes.

女士們、先生們，感謝你們的支持。歡迎參加阿特斯陽光電力 2025 年第一季財報電話會議。我的名字是雪莉，我將擔任您今天的接線員（接線員指示）提醒一下，本次會議將被錄音以供重播。

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

現在我想將電話轉給阿特斯陽光電力公司投資者關係主管 Wina Huang。請繼續。

Thank you, operator, and welcome everyone to Canadian Solar's first quarter of 2025 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.

謝謝接線員，歡迎大家參加阿特斯陽光電力 2025 年第一季電話會議。請注意，今天的電話會議附有幻燈片，可在阿特斯陽光電力公司投資者關係網站的「活動和簡報」部分找到。

Joining us today are Dr. Xiaohua Qu, Chairman and CEO, Yan Zhuang, President of Canadian Solar subsidiary CSI Solar; Ismael Guerrero, Corporate VP and President of Canadian Solar subsidiary for Current Energy; and Xinbo, Senior VP and CFO. All company executives will participate in the Q&A session after management's formal remarks.

今天參加會議的有董事長兼執行長瞿小華博士、阿特斯陽光電力子公司CSI Solar總裁莊嚴、阿特斯陽光電力Current Energy子公司企業副總裁兼總裁Ismael Guerrero以及資深副總裁兼財務長辛波。管理階層正式發言後，所有公司主管都將參加問答環節。

On this call, Sean will go over some key messages for the quarter. Yan and Ismael will review business highlights for CSI solar and recurrent Energy respectively, and Ximbo will go through the financial results. Sean will conclude the prepared remarks with the business outlook, after which we will have time for questions.

在這次電話會議上，肖恩將討論本季的一些關鍵訊息。Yan 和 Ismael 將分別回顧 CSI 太陽能和 Recurrent Energy 的業務亮點，而 Ximbo 將介紹財務結果。肖恩將以商業展望結束準備好的發言，之後我們將有時間回答問題。

Before we begin, I would like to remind listeners that managements prepared remarks today, as well as their answers to questions will contain 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.

在我們開始之前，我想提醒聽眾，管理層今天準備的發言以及他們對問題的回答將包含前瞻性陳述，這些陳述受風險和不確定性的影響。該公司聲稱受到《1995 年私人證券訴訟改革法案》中前瞻性陳述安全港的保護。

Actual results may differ from management's current expectations. Any projections of the company's future performance represent management's estimates as of today. Canadian Solar asses 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.

實際結果可能與管理層目前的預期不同。對公司未來業績的任何預測均代表管理層截至今天的估計。除非適用法律另有要求，否則阿特斯陽光電力集團不承擔將來更新這些預測的義務。有關風險和不確定性的更詳細討論，請參閱公司向美國證券交易委員會提交的 20-F 表年度報告。

Management 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.

管理層準備的評論將按照美國證券交易委員會 (SEC) G 條例關於公認會計原則 (GAAP) 的要求進行呈現。電話會議中提供的一些財務資訊將以 GAAP 和非 GAAP 為基礎提供。

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 prepared in accordance with GAAP.

透過披露某些非公認會計準則信息，管理層希望向投資者提供更多信息，以便進一步分析公司的業績和潛在趨勢。管理階層使用非公認會計準則指標來更好地評估經營績效並制定營運目標。投資者不應將非 GAAP 資訊視為按照 GAAP 編制的數據的替代品。

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

現在我想把電話轉給阿特斯陽光電力集團董事長兼執行長屈小華博士，請小華開始發言。

Your line might be muted.

您的線路可能被靜音了。

Thank you, Wina, and thank you all for joining our first quarter earnings call. Please turn to slide 3. We began the year with a solid performance. Module shipments reached a 6.9 gigawatts slightly above our guidance. Revenue totaled $1.2 billion at the high end of our range while gross margin of 11.7% modestly exceeded expectations.

謝謝你，Wina，也謝謝大家參加我們第一季的財報電話會議。請翻到幻燈片 3。我們以穩健的業績開啟了新的一年。模組出貨量達到 6.9 千兆瓦，略高於我們的預期。總收入達到 12 億美元，處於我們預期範圍的高端，而 11.7% 的毛利率略高於預期。

Profitability was impacted by lower contributions from storage, duties and tariffs, recurrence, ongoing transformation, and inter-company elimination. This resulted in a net loss to shareholders of $34 million or $0.69 per diluted shares.

獲利能力受到倉儲、關稅、重複性、持續轉型和公司間消除等因素貢獻降低的影響。這導致股東淨虧損 3,400 萬美元，即每股虧損 0.69 美元。

2025 will face many of the same challenges that define 2024. Well, that, while near term headwinds remain. We are confident in the long term opportunities and will continue to invest in them.

2025 年將面臨與 2024 年相同的許多挑戰。嗯，儘管短期內逆風依然存在。我們對長期機會充滿信心，並將繼續對其進行投資。

Please turn to slide 4. In the near term, we are tackling challenges that test us both operationally and financially. Structural overcapacity across the solar supply chain has prolonged the market downturn, putting pressure on molecule pricing in almost in most global markets.

請翻到幻燈片 4。短期內，我們正在應對營運和財務方面的挑戰。太陽能供應鏈的結構性產能過剩延長了市場低迷，對幾乎全球大多數市場的分子定價帶來壓力。

In addition to fierce competition, tariffs and shifting policies are raising costs and squeezing margins. To navigate these challenges, we are maintaining a profit focused approach to our module business, carefully managing volumes in less profitable markets, leveraging a (inaudible).

除了激烈的競爭之外，關稅和不斷變化的政策也在推高成本並擠壓利潤空間。為了應對這些挑戰，我們堅持以利潤為中心的模組業務方針，謹慎管理利潤較低的市場的銷量，利用（聽不清楚）。

Supply chain strategies and offering bundled sales. Storage continues to be a key differentiator and profit driver. We are also rigorously managing operating expenses and capital expenditures to support our bottom line and cash flow.

供應鏈策略和捆綁銷售。儲存仍然是關鍵的差異化因素和利潤驅動因素。我們也嚴格管理營運費用和資本支出，以支持我們的底線和現金流。

Recently, we held an internal town hall meeting where I posted a question on behalf of the broader renewable energy sectors. Does this industry still have a bright future?

最近，我們舉行了一次內部市政廳會議，我在會議上代表更廣泛的再生能源部門提出了一個問題。這個行業還有前景嗎？

My answer is a resounding, yes. Global electricity demand is growing at its fastest pace in years, and the rise of AI and other energy intensive applications is widening the energy gap. Solar power, clean, affordable, and easy to deploy can quickly meet this demand, especially when paired with storage.

我的答案是肯定的。全球電力需求正以多年來最快的速度成長，人工智慧和其他能源密集應用的興起正在擴大能源缺口。太陽能清潔、價格實惠且易於部署，可以快速滿足這一需求，尤其是與儲存相結合時。

Canadian Solar has a proven track record of navigating policy shifts and market cycles, demonstrating our technological leadership and resilient in challenging times. Well, our operating environment continue to evolve. Our one constant, yes, our commitment to R&D and leadership through innovation.

阿特斯陽光電力在應對政策變化和市場週期方面有著良好的記錄，展現了我們的技術領先地位和在困難時期的韌性。嗯，我們的營運環境不斷發展。是的，我們始終不變的是我們致力於透過創新進行研發和領導。

Please turn to slide 5. Over the past two months, we have announced several new products, showcasing our leadership across both solar and energy storage technologies.

請翻到投影片 5。在過去的兩個月裡，我們發布了多款新產品，展示了我們在太陽能和儲能技術領域的領先地位。

In Solar, we completed our first deployment of Canadian Solar's innovative anti-health technology in Australia. This technology protects solar panels from severe weather, reflecting our dedications to delivering durable, high performance solutions in even the most demanding environment.

在太陽能領域，我們在澳洲首次部署了阿特斯太陽能的創新抗健康技術。這項技術可以保護太陽能電池板免受惡劣天氣的影響，體現了我們致力於在最苛刻的環境中提供耐用、高性能解決方案的決心。

We also introduced our new anti high power (inaudible) gen two modules for utility scale and the CNI system. Built on our latest top com cell technology, these modules deliver a maximum power output of up to 660 watts and a conversion efficiency of up to 24.4%. By advancing our solar technology, we help customers lower their levelized cost of energy and improve project economics, reinforcing solar as one of the most cost-effective energy generation options.

我們也推出了用於公用事業規模和 CNI 系統的新型抗高功率（聽不清楚）第二代模組。這些模組基於我們最新的頂級 com 電池技術，可提供高達 660 瓦的最大功率輸出和高達 24.4% 的轉換效率。透過推動我們的太陽能技術，我們幫助客戶降低能源平準成本並提高專案經濟性，使太陽能成為最具成本效益的能源生產方式之一。

On the storage front, we achieved key milestones in both utility scale and residential offerings. At Intersolar in Munich, we officially launched our SolBank 3.0 Plus enhancements to the lithium-ion phosphate battery cell manufacturing process, elevate its performance beyond the already successful SolBank 3.0.

在儲存方面，我們在公用事業規模和住宅產品方面都取得了重要的里程碑。在慕尼黑的 Intersolar 展會上，我們正​​式推出了 SolBank 3.0 Plus，該技術對磷酸鐵鋰離子電池單元製造流程進行了增強，使其性能超越了已經成功的 SolBank 3.0。

This solution offers a 25 year lifespan near zero degradation for the first four years, and up to 12,000 cycles at 95% round trip efficiency. SolBank 3.0 plus can significantly reduce our customers' operational costs by boosting overall lifetime energy throughout-- throughput by over 13%.

該解決方案的使用壽命為 25 年，前四年幾乎為零性能下降，循環效率高達 95%，可進行多達 12,000 次循環。SolBank 3.0 plus 可將整個生命週期的能源吞吐量提高 13% 以上，從而顯著降低客戶的營運成本。

We are also proud that our residential energy storage solution EP cube, received the prestigious 2025 (inaudible) Design Award and gold at the 2025 News Design Awards. BP cube combines an aesthetically pleasing design important to homeowners with functional advantages like easy installation and flexible capacity options. It continues to gain strong traction in global markets.

我們還很自豪，我們的住宅儲能解決方案 EP cube 獲得了著名的 2025（聽不清楚）設計獎和 2025 新聞設計獎金獎。BP cube 結合了對房主來說很重要的美觀設計和易於安裝、容量選項靈活的功能優勢。它在全球市場上繼續獲得強勁發展。

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

現在，我將把電話轉給 Yan，他將提供有關我們 CSI 太陽能業務的更多詳細資訊。嚴先生，請說。

Thank you, Xiaohua. Please turn to slide 6.

謝謝你，小花。請翻到幻燈片 6。

In the first quarter of 2025, module shipments increased by 9.4% year-over-year to 6.9 gigawatts. We slightly exceeded our module shipment guidance, driven by incremental shipments to China. As the industry rushed to complete installations ahead of new policies taking effect on June the 1.

2025年第一季度，組件出貨量年增9.4%至6.9吉瓦。由於對中國的出貨量增加，我們的模組出貨量略微超出了預期。由於該行業急於在 6 月 1 日新政策生效之前完成安裝。

Storage deliveries aligned with guidance totaling 849 megawatt hours. Revenue reached $1.2 billion and our gross margin declined by 640 basis points quarter-over-quarter to 13.4%, primarily due to lower energy storage shipments.

儲存交付量與指導值一致，總計 849 兆瓦時。營收達 12 億美元，毛利率季減 640 個基點至 13.4%，主要原因是儲能出貨量下降。

While costs rose slightly partly from non-refundable VAT changes in China effective last December and slightly higher manufacturing costs in Southeast Asia on our blended supply chain strategy. Average selling prices improved with a higher share of shipments to North America. With shipping costs declining sequentially due to softening global shipping rates and our rigorous management of our printing expenses, we achieved a printing income of $2 million.

成本略有上升，部分原因是去年 12 月中國實施的不可退還增值稅變化，以及我們混合供應鏈策略導致東南亞的製造成本略有上升。隨著北美出貨量的增加，平均售價有所提高。由於全球運費下降以及我們嚴格管理印刷費用導致運輸成本持續下降，我們實現了 200 萬美元的印刷收入。

Now turning to e-storage, please refer to page 7. In the first quarter, we recognized revenue from 849 megawatt hours of shift solutions. The softer performance was due to contract timing, and we expect a much stronger second quarter.

現在轉到電子存儲，請參閱第 7 頁。第一季度，我們確認了849兆瓦時的換班解決方案收入。業績表現較弱是由於合約時間表所致，我們預計第二季業績表現會更加強勁。

Understandably, the ongoing US-China tariff negotiations remain top of mind for all stakeholders. While we cannot predict final outcomes, it is critical to recognize that these US energy storage projects, essentially for great resilience and energy dispatchability took years of planning and a significant investment.

可以理解的是，正在進行的中美關稅談判仍然是所有利害關係人最關心的問題。雖然我們無法預測最終結果，但必須認識到，這些美國能源儲存項目，本質上是為了實現強大的彈性和能源調度能力，經過了多年的規劃和大量的投資。

While clarity may take some time, the industry will work together to advance these projects. Like all market participants were navigating this uncertainty. For e-storage, the US accounts for upwards of one-third of our energy storage business expected for this year.

雖然澄清可能需要一些時間，但業界將共同努力推進這些項目。就像所有市場參與者都在應對這種不確定性一樣。對於電子儲存而言，美國占我們今年預計的能源儲存業務的三分之一以上。

We are actively engaging with customers to mitigate risks and ensure smooth project execution. Nobody were well positioned with our global blended manufacturing strategy. Beyond our planned [Kentucky] storage facility, we have cell manufacturing capabilities and supplier partnerships that will allow us to offer customers flexible options starting in 2026.

我們積極與客戶合作，以降低風險並確保專案順利執行。沒有人能夠很好地適應我們的全球混合製造策略。除了我們計劃中的[肯塔基州]儲存設施之外，我們還擁有電池製造能力和供應商合作夥伴關係，這將使我們能夠從 2026 年開始為客戶提供靈活的選擇。

Demand for storage is stronger than ever, not just in the US, but globally. As of March 31, our record pipeline of 91 gigawatt hours, including $3.2 billion in contracted backlog, highlights the structural growth potential of energy storage worldwide. For example, we recently secured another major project in Latin America.

對儲存的需求比以往任何時候都強勁，不僅在美國，而且在全球範圍內。截至 3 月 31 日，我們的儲能儲備容量已達創紀錄的 91 吉瓦時，其中包括價值 32 億美元的合約積壓訂單，凸顯了全球儲能的結構性成長潛力。例如，我們最近在拉丁美洲獲得了另一個重大項目。

Please turn to slide 8. Diego de Almagro, a leading Chilean power generation company, selected storage to supply a 912 mega megawatt hour battery energy storage system for the Diego de Almagro project in Chile's Atacama region.

請翻到第 8 張投影片。智利領先的發電公司 Diego de Almagro 選擇儲能公司為智利阿塔卡馬地區的 Diego de Almagro 專案提供 912 兆瓦時的電池儲能係統。

Like many in e-storage's global track record, now exceeding 11 gigawatt hours, this project highlights the value of energy storage. It strengthens grid reliability, optimizes renewable energy use, and it ensures secure continuous power for industrial demand.

與全球電子儲存領域的許多專案一樣，該專案現已超過 11 千兆瓦時，凸顯了能源儲存的價值。它增強了電網可靠性，優化了再生能源的使用，並確保了工業需求的安全持續電力。

Now let me hand the call over to Ismael, who will provide an overview of recurrent energy, Canadian Solar's global project development business.

現在，讓我將電話交給伊斯梅爾，他將概述加拿大太陽能公司的全球專案開發業務—再生能源。

Ismael, please go ahead

伊斯梅爾，請繼續

Thank you, Yan. Please turn to slide 9. In the first quarter, we generated $125 million in revenue. Gross margin was 18.6%, driven by project sales in Latin America. Due to the operating costs of our platform and the ongoing scaling of our IPP portfolio, we posted an operating loss of $12 million for the quarter.

謝謝你，Yan。請翻到第 9 張投影片。第一季度，我們的營收為 1.25 億美元。毛利率為18.6%，受拉丁美洲項目銷售的推動。由於我們平台的營運成本以及 IPP 產品組合的持續擴大，我們本季的營運虧損為 1,200 萬美元。

Regarding our business transformation, we remain focused on execution. Currently, we have 1.2 gigawatts peak of solar and 1.4 gigawatt hours of energy storage projects under construction in Europe and the US.

關於我們的業務轉型，我們仍然專注於執行。目前，我們在歐洲和美國正在建造1.2千兆瓦峰值太陽能專案和1.4千兆瓦時的儲能專案。

In January, our 35 megawatts peak [Montalco] project in Lazio, Italy reached commercial operation. The PV project was contracted with expo with an attractively priced PPA.

1月份，我們位於義大利拉齊奧的35兆瓦峰谷[蒙塔爾科]專案投入商業營運。該光伏計畫與世博會簽訂了一份價格極具吸引力的電力購買協議 (PPA)。

In addition, [Montalto] is also one of the first co-located PV and best projects in the Italian market. The best portion won a 15 year fixed capacity payment in a public auction, and it is now under construction. In the US, we secure tax equity and project finance for (inaudible), a 200 megawatt hour, merchant storage project in (inaudible), Texas.

此外，【Montalto】也是義大利市場上首批共建光伏及優質項目之一。其中最好的部分在公開拍賣中贏得了 15 年的固定容量付款，目前正在建設中。在美國，我們為位於德克薩斯州（聽不清楚）的一個 200 兆瓦時商業儲存專案（聽不清楚）獲得了稅收公平和專案融資。

This is testament to the strength of our projects and financing teams, as well as the strong support from our capital partners in enabling innovative solutions to drive impact. Construction for Fort Duncan is complete and under commissioning as we speak.

這證明了我們的專案和融資團隊的實力，以及我們的資本合作夥伴在實現創新解決方案以產生影響方面的大力支持。目前，鄧肯堡的建設已經完成並投入使用。

In line with our global growth strategy, we secured a $450 million multi-currency credit facility, which includes an accordion feature that allows for potential upsizing. This corporate facility provides flexible and scalable financing with disbursement in USD , EUR, GBP and AUD, supporting our strategy to expand our IPP portfolio across diverse markets and geographies.

按照我們的全球成長策略，我們獲得了 4.5 億美元的多幣種信貸額度，其中包括允許潛在擴大規模的手風琴功能。此項企業融資提供靈活且可擴展的融資，以美元、歐元、英鎊和澳元支付，支持我們在不同市場和地區擴展 IPP 組合的策略。

Given the uncertain policy environment in the US, we are proactively implementing safeguards for all major IPP projects, including safe harboring equipment. While the long term effects of tariffs remain to be seen, we expect very limited impact, given recent progress in trade negotiations.

鑑於美國政策環境的不確定性，我們正在積極實施所有主要 IPP 項目的保障措施，包括安全港設備。雖然關稅的長期影響仍有待觀察，但鑑於近期貿易談判的進展，我們預期影響將非常有限。

Now please turn to slide 10 for an update on our pipeline. As of March 31, 2025, we have secure interconnections for 9 gigawatts of solar and 16 gigawatt hours of storage globally, excluding projects already in operation. Our total project pipeline now stands at 27 gigawatts of solar and 76 gigawatt hours of energy storage.

現在請翻到第 10 張投影片來了解我們的管道最新情況。截至 2025 年 3 月 31 日，我們在全球擁有 9 千兆瓦太陽能和 16 千兆瓦時儲存的安全互連（不包括已投入營運的專案）。我們目前的專案總量為 27 千兆瓦太陽能和 76 千兆瓦時的能源儲存。

While we continue to expand our pipeline, the availability of easy to develop land with relatively cheap interconnections is becoming increasingly scarce. We are now prioritizing our core markets, the US and Europe, while in other regions we focus primarily on low cost greenfield development.

在我們繼續擴大管道的同時，易於開發且互連成本相對低廉的土地資源正變得越來越稀缺。我們現在優先考慮我們的核心市場，美國和歐洲，而在其他地區，我們主要關注低成本的綠地開發。

Now, let me hand the call over to Xinbo, who will go through our financial results in more detail.

現在，我將電話交給新波，他將更詳細地介紹我們的財務表現。

Xinbo, please go ahead.

新博，請說。

Thank you, Ismael.

謝謝你，伊斯梅爾。

Please turn to slide 11. In the fourth quarter, we shipped 6.9 gigawatts of modules, slightly above guidance and delivered 849 megawatt hours of energy storage solutions in line with expectations. Revenue reached $1.2 billion at the high end of our forecast.

請翻到第 11 張投影片。第四季度，我們出貨了 6.9 吉瓦的模組，略高於預期，並交付了 849 兆瓦時的儲能解決方案，符合預期。收入達到了我們預測的高端的 12 億美元。

Gross margin of 11.7% exceeded guidance. The 260 basis point sequential decline was primarily due to lower energy storage shipments.

11.7%的毛利率超出預期。連續 260 個基點的下降主要是因為儲能出貨量下降。

While the 730 basis point year-over-year decline was driven by lower module ASP. Operating expenses decreased 4% year-over-year driven by lower shipping costs. Last quarter's results included non-recurring impairment charts related to certain manufacturing and solar assets, making the year-over-year comparison more reflective of our ongoing operational performance.

而年減 730 個基點則是由於模組平均售價下降所致。由於運輸成本下降，營運費用較去年同期下降 4%。上個季度的業績包括與某些製造和太陽能資產相關的非經常性減損圖表，使年比比較更能反映我們持續的營運表現。

Net interest expense in the first quarter was $28 million compared to $9 million in the fourth quarter of 2024 and the less than $1 million in the first quarter of [20,194]. The current quarter reflects a more normalized interest expense as prior comparative periods benefited from non-recurring interest income items.

第一季淨利息支出為 2,800 萬美元，而 2024 年第四季為 900 萬美元，2021 年第一季則不到 100 萬美元。[20,194]。本季反映出更正常化的利息支出，因為前期比較期間受益於非經常性利息收入項目。

Net foreign exchange loss was $14 million primarily due to dollar weakness and tariff related pressures. Total net loss was $34 million or $0.69 per diluted share. These results included a positive HLPV impact of $26 million or $0.38 per share from tax equity arrangements tied to certain US operating projects.

淨外匯損失為 1400 萬美元，主要原因是美元疲軟和關稅相關壓力。總淨虧損為 3,400 萬美元，即每股虧損 0.69 美元。這些結果包括與某些美國營運項目相關的稅收公平安排產生的 2,600 萬美元或每股 0.38 美元的正面 HLPV 影響。

Now, let's turn to cash flow and the balance sheet. Please turn to slide 12. Net cash flow used in operating activities during the first quarter of 2025 was $264 million. This outflow was primarily driven by increased inventories and project assets.

現在，讓我們來看看現金流和資產負債表。請翻到第 12 張投影片。2025年第一季經營活動所用淨現金流為2.64億美元。資金流出主要是由於庫存和項目資產增加所致。

Total assets grew to $13.9 billion driven by investments in private assets and solar power systems, positioning us for longer term value creation. In the first quarter, we allocated $256 million in capital expenditures, primarily towards US manufacturing initiatives.

在私人資產和太陽能係統投資的推動下，總資產成長至 139 億美元，這為我們創造長期價值奠定了基礎。第一季度，我們撥付了 2.56 億美元的資本支出，主要用於美國製造業計畫。

Our full year 2025 CapEx outlook remains unchanged at around $1.2 billion. We ended the quarter with a cash balance of $2.0 billion and total debt of $5.7 billion reflecting borrowings for capacity extension, working capital, and the project and operational assets development.

我們對 2025 年全年資本支出的預期保持不變，約為 12 億美元。本季末，我們的現金餘額為 20 億美元，總債務為 57 億美元，反映了產能擴張、營運資金以及專案和營運資產開發的借款。

Now let me turn the call back to Xiaohua who will conclude with our guidance and business outlook.

現在，讓我把電話轉回小華，她將總結我們的指導和業務展望。

Xiaohua, please go ahead.

小華，請說。

Thank you, Xinbo. Please turn to slide 13. For the second quarter of 2025, we anticipate CSS Solar's module shipment will range between 7.5 to 8 gigawatts, including approximately 500 megawatts allocated to our own project. We also expect to deliver between 2.4 and 2.6 gigawatts of energy storage solutions during this period.

謝謝你，新博。請翻到第 13 張投影片。對於 2025 年第二季度，我們預計 CSS Solar 的模組出貨量將在 7.5 至 8 吉瓦之間，其中包括分配給我們自己專案的約 500 兆瓦。我們也預計在此期間提供 2.4 至 2.6 千兆瓦的能源儲存解決方案。

We project total second quarter revenue to be in the range of $1.9 billion to $2.1 billion, with gross margin expected to be between 23% and 25%. The anticipated margin improvement reflects strong energy storage shipment and includes a sizable margin contribution from the deconsolidation of a US project. This deconsolidation was released previously eliminated in-company gross margin on CSI solar components installed within the project.

我們預計第二季總營收將在 19 億美元至 21 億美元之間，毛利率預計在 23% 至 25% 之間。預期的利潤率提高反映了強勁的儲能出貨量，並包括美國項目拆分帶來的可觀的利潤率貢獻。此次分割發布前已消除了專案內安裝的CSI太陽能組件的公司內部毛利率。

We continue to operate in an environment marked by global pricing volatility and evolving policy uncertainty which limits our margin visibility. Based on our recent assessment of market and geopolitical development, we are updating our full year guidance as follows.

我們繼續在全球價格波動和政策不確定性不斷變化的情況下運營，這限制了我們的利潤率可見性。根據我們最近對市場和地緣政治發展的評估，我們將全年指導更新如下。

For the full year of 2025, we update module, volume guidance to 25 to 30 gigawatts, including approximately 1 gigawatt to our own project. (inaudible) the storage shipments, we provide conditional guidance between 7 to 9 gigawatt hours, including approximately 1 gigawatt hour allocated to our own projects.

對於 2025 年全年，我們將模組、容量指導更新為 25 至 30 千兆瓦，其中包括分配給我們自己專案的約 1 千兆瓦。 （聽不清楚）對於儲存出貨量，我們提供 7 至 9 千兆瓦時的條件指導，其中包括分配給我們自己專案的約 1 千兆瓦時。

The reduced module volumes primarily reflect our strategic reduction of exposure to a less profitable markets, while the expected storage adjustments relates to US volumes affected by trade negotiations. As a result of this volume adjustment, we now expect full year revenue to be between $6.1 billion and $7.1 billion.

模組產量的減少主要反映了我們策略性地減少了對利潤較低的市場的曝險，而預期的儲存調整與受貿易談判影響的美國產量有關。由於此次數量調整，我們現在預計全年營收將在 61 億美元至 71 億美元之間。

With that, I would now like to open the floor for questions, operator?

好了，現在我想開始提問了，接線生？

Thank you. We will now be conducting a question and answer session. (Operator instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Colin Rusch, Oppenheimer & Company.

奧本海默公司的科林‧拉什 (Colin Rusch)。

Thanks so much guys. There's a lot of variables here, and Xiaohua, obviously you've gone through a variety of policy shifts. One element that I'd love to get a bit more detail on is around the FEOC provisions that were released in the budget, I guess if you guys look at how that might evolve and get solidified in the budget, how does that impact your plans for US capacity investment. And how should we think about that, some of those elements impacting the variability in your guidance.

非常感謝大家。這裡有很多變數，小華，顯然你已經經歷了各種政策轉變。我想要了解更多細節的一點是有關預算中發布的 FEOC 條款，我想如果你們看看這些條款將如何發展並在預算中得到鞏固，這將如何影響你們對美國產能投資的計劃。我們應該如何看待這些因素，它們會影響您的指導的多變性。

Well, [sciences] calling. It's a good question, but also a tough question. Now, the new draft of the FEOC was only released two days ago by the House Ways and Means Committee, and it's only the first draft. We believe it will not look like this.

嗯，[科學]在召喚。這是一個好問題，但也是一個難題。現在，眾議院籌款委員會兩天前才公佈了《公平就業機會委員會法》的新草案，而且這只是初稿。我們相信它不會是這樣的。

At the final bill, final reconciliation bill. So it's hard to comment at this moment because in the next two, three years there will be, we believe there will be changed and we will also put our opinion and our suggestions through the relevant representatives and signatures, and also to the administration. So I will not comment now because it's only two days old draft and only the first draft from the House Ways, I mean.

在最後的帳單上，最後的和解帳單。所以現在很難發表評論，因為在未來的兩三年內，我們相信會有所改變，我們也會透過相關代表和簽名，以及向政府提出我們的意見和建議。所以我現在不會發表評論，因為這只是兩天前的草案，而且只是眾議院通過的第一稿。

Perfect, appreciate that answer. And then just shifting gears to the balance sheet. As you move through this year, we've seen some of the long term debt increase, assuming that the bulk of that is around projects. How should we think about target ratios for you guys from a cash flow perspective and a leverage perspective?

非常好，非常感謝您的回答。然後就轉向資產負債表。隨著今年的到來，我們看到一些長期債務增加，其中大部分與該項目有關。從現金流角度和槓桿角度，我們該如何考慮你們的目標比率？

Yeah, Xinbo, do you want to answer this question?

是的，新博，你想回答這個問題嗎？

From recurrent perspective, we are still in the transition of, from the project (Inaudible - microphone inaccessible), so we are continuing, to do our projects and (inaudible)So the leverage of recurrent will increase a little bit for, such as solar, we will maintain a similar leverage ratio to balance the growth and, yeah, our capital structure.

從經常性角度來看，我們仍處於從項目（聽不清楚 - 麥克風無法訪問）的過渡期，因此我們會繼續開展我們的項目和（聽不清楚）因此經常性的槓桿率會有所增加，例如太陽能，我們將保持類似的槓桿率以平衡增長，是的，我們的資本結構。

Okay, thanks guys. I'll hop back in queue.

好的，謝謝大家。我會重新回到隊列中。

Philip Shen, Roth Capital Partners.

菲利普‧沈 (Philip Shen)，羅斯資本合夥公司。

Hi, thanks for taking my questions. In terms of the 2025 guidance, you lowered your module shipments by 15%, and battery shipments, I think by 30%, but the revenue guide only came down 10%. Can you walk us through again, or just walk us through how revenue is able to be down only 10%? Do you expect pricing to go higher? Sorry, if I missed some of your explanation. Thanks.

你好，謝謝你回答我的問題。就 2025 年的預期而言，你們將模組出貨量降低了 15%，電池出貨量降低了 30%，但營收預期僅下降了 10%。您能否再向我們詳細介紹一下，或者只是向我們介紹一下收入如何能夠只下降 10%？您預計價格會上漲嗎？抱歉，如果我錯過了您的一些解釋。謝謝。

Yeah, maybe you Wina, you are at the best position to answer this question.

是的，也許你，Wina，你最適合回答這個問題。

Hi so, as Sean mentioned, we are (Inaudible - microphone inaccessible) strategy, which means that the volume for modules in it is less profitable markets, whereas, for storage, this is our best estimate within the ongoing trade negotiations. So this is still very fluid, as you can see it's a pretty wide revenue guidance range.

你好，正如 Sean 所提到的，我們採用的是（聽不清楚 - 麥克風無法訪問）策略，這意味著模組在利潤較低的市場中的銷量，而對於存儲而言，這是我們在正在進行的貿易談判中的最佳估計。因此，這仍然非常不穩定，正如你所看到的，這是一個相當廣泛的收入指引範圍。

Okay, thank you guys. And as it relates to the draft House bill, I know Xiaohua, you talked about the FEOC rules and how that might need to be changed or you might, you expect it to be changed ahead. They also have new rules as it relates to the ITC and PTC.

好的，謝謝大家。至於眾議院法案草案，我知道小華，您談到了 FEOC 規則以及它可能需要如何改變，或者您可能希望它提前改變。他們還制定了與 ITC 和 PTC 相關的新規則。

If they were to pass, now they're looking to get place and service requirements instead of construction starts to secure the ITC and PTC. How would you expect that to impact your installations over the next two years? Do you think there would be modest limited impacts on the recurrent business, or do you think there might be some challenges with that new language? Thank you.

如果他們通過了，現在他們正在尋求獲得場地和服務要求而不是開工來確保 ITC 和 PTC。您認為這會對您未來兩年的安裝產生什麼影響？您認為這會對經常性業務產生有限的影響嗎？或者您認為新語言可能會帶來一些挑戰？謝謝。

Yeah, Philip, this is also a very good question. The FEOC is important and the ITC schedule is also very important. So we are paying lots of attention to the draft from the (inaudible) committee and as I said, I expect this to change. It looks like it's still far from the final law.

是的，菲利普，這也是一個很好的問題。FEOC很重要，ITC時程也很重要。因此，我們非常關注（聽不清楚）委員會的草案，正如我所說，我預期這種情況會改變。看起來距離最終的法律還很遙遠。

However, the ITC, that means a lot to developers and to also to manufacturers. So, and Canadians are both developers and manufacturers. So indeed, ITC, will have a impact, a significant meaningful impact if it is give it back. Our calculation shows the one year of ITC credit means several 100 millions of dollars to Canadian solar alone, not to mention the whole industry. So it's very important and we will put in our suggestion and our opinions.

然而，ITC 對開發商和製造商來說意義重大。所以，加拿大人既是開發商，也是製造商。因此，如果歸還 ITC，它將會產生影響，而且是重大且有意義的影響。我們的計算表明，一年的ITC信貸僅對加拿大太陽能公司就意味著幾億美元，更不用說整個產業了。所以這非常重要，我們會提出我們的建議和意見。

But on the other hand, Philip, if you remember, there has been talking of ITC phase out several times in the past 10,15 years, and I believe ITC was first introduced during President Bush, right? Time and then in every year, not in every President afterward, and also the House and (inaudible) reduced extended this ITC. So but we will also have been preparing for ITC phase out time and for just for recurrent, but I remember recurring I had like safe harbor for modules and other equipment several times in the past 15 years and every time ITC got extended.

但另一方面，菲利普，如果你還記得的話，在過去的 10 到 15 年裡，已經多次談論過 ITC 的逐步取消，而且我相信 ITC 是在布希總統任期內首次推出的，對嗎？時間，然後是每年，而不是之後的每一位總統，以及眾議院和（聽不清楚）減少延長了這個 ITC。所以，但我們也將為 ITC 的逐步淘汰時間和重複性工作做準備，但我記得在過去 15 年裡，我曾多次為模組和其他設備提供安全港，而且每次 ITC 都會延長。

So, the ITC seems to have good longevity so we'll see how it looks like this time, but the industry and also recurrent plus the Canadian Solar, we are prepared to go through another round. I believe the solar project and the (inaudible) the price is very economic these days, and also the electricity demand is high. So whatever the ITC is, I think the industry will adjust, eventually will adjust and then continue to grow.

因此，ITC 似乎具有良好的長期性，所以我們將看看這次的情況如何，但對於該行業以及經常性因素加上 Canadian Solar 來說，我們準備好經歷另一輪。我認為太陽能專案和（聽不清楚）價格現在非常經濟，電力需求也很高。因此，無論 ITC 是多少，我認為該行業將會進行調整，最終將會調整，然後繼續成長。

Okay, thanks, Xiaohua. I had a follow up question on the Q2 margin guide, and you gave some detail around the strength is due to storage and I think the deconsolidation of the US project. Can you share a little bit more color there? What is the expectation for storage margins these days? Historically I think you guys have talked about 20%, but is it closer to mid-20% or even higher and just provide a little bit more detail on the consolidation. Thanks.

好的，謝謝小華。我對第二季度利潤指南有一個後續問題，您給出了一些細節，說明利潤強勁是由於存儲，而且我認為是美國項目的拆分造成的。能分享更多一些顏色嗎？目前對儲存利潤的預期是多少？從歷史上看，我認為你們談論的是 20%，但它是否更接近 20% 中間值甚至更高，並提供有關合併的更多細節。謝謝。

Provide comments on the energy storage and margin and then Ximbo, you may want to explain the de consolidation of solar project.

提供關於能源儲存和利潤的評論，然後 Ximbo，你可能想解釋一下太陽能專案的去合併。

So on the storage side, the Q2 storage shipment happened in Q1, so it was before this tariff war and so margin wise, I can only say it's about 20%. I was pretty healthy and also volume wise Q2 is going to be much higher. So the guidance is 2.6 to 2.8, 2.4 to 2.6 gigawatt hour, so it's much higher than Q1.

因此在儲存方面，第二季度的儲存出貨量發生在第一季度，也就是在這場關稅戰之前，因此利潤率方面，我只能說約為 20%。我的身體狀況相當健康，而且第二季的銷售量也會更高。因此指引值為 2.6 至 2.8、2.4 至 2.6 千兆瓦時，遠高於第一季。

Yeah, let me call the deconsolidation. We have a storage project with fixed rate total agreement covering about 80% of the project's lifetime. According to the accounting standard, when the projects reach COD, the majority of the risks and controls are transferred to the counterparts.

是的，我稱之為拆分。我們有一個儲存項目，其固定利率總協議涵蓋了項目生命週期的約 80%。根據會計準則，當專案達到COD時，大部分風險和控制權就轉移給了對方。

So, according to accounting standard, we need to deconsolidate this project from our balance sheet and it release the intercompany profit in early quarters and it's a one-time event contributing about 5% to 6% of gross margin in next quarter.

因此，根據會計準則，我們需要將該項目從我們的資產負債表中分離出來，並在前幾個季度釋放公司間利潤，這是一次性事件，將在下個季度貢獻約 5% 至 6% 的毛利率。

Okay, thank you. And would you expect the strength? What kind of gross margins could we see in Q3 and Q4? Thanks.

好的，謝謝。您期望它有那麼強的力量嗎？我們在第三季和第四季可以看到什麼樣的毛利率？謝謝。

No, we're not guiding this.

不，我們不會指導此事。

Okay, I appreciate it. Thank you guys. I'll pass it on.

好的，我很感激。謝謝你們。我會傳達的。

Brian Lee, Goldman Sachs.

高盛的 Brian Lee。

Hey guys, this is [Tyler Bissit] on for Brian. Thanks for taking our questions. So you guys lowered storage volume expectations due to the trade negotiations, and, can you provide some details on what sort of tariff assumptions are embedded in your guidance? I know there are some recent negotiations. I just want to confirm what's embedded there.

大家好，我是 [Tyler Bissit]，為 Brian 播報。感謝您回答我們的問題。所以，由於貿易談判，你們降低了儲存量預期，並且，您能否提供一些有關您的指導中包含哪些關稅假設的詳細資訊？我知道最近有一些談判。我只是想確認那裡嵌入了什麼。

And similarly you mentioned offering some flexible sourcing capabilities, so can you provide some more details on kind of the pricing differentials of leveraging different sources versus your existing products?

同樣，您提到提供一些靈活的採購能力，那麼您能否提供更多有關利用不同來源與現有產品之間的定價差異的詳細資訊？

Yeah, Yan, do you want to handle this question? The energy storage guidance, new guidance.

是的，Yan，你想處理這個問題嗎？儲能指南，新指南。

I think to the sound to mind, gigawatt hour actually covered the different uncertainties already. So that is, that included as many days exemption and also the uncertainties after that. So it can be as low as 7 or as high as 9, so that's our assumption.

我認為，聽起來，千兆瓦時實際上已經涵蓋了不同的不確定性。也就是說，這包括盡可能多的豁免天數以及之後的不確定性。所以它可以低至 7 或高至 9，這是我們的假設。

And any sort of details on just like pricing differential from different sourcing capabilities?

還有關於不同採購能力的定價差異的任何詳細資訊嗎？

Okay, and actually for the storage contracts, most of the -- we will have a change of law protection. Some of them are like cap pricing and the other others we shared on tariff. So even, with the different uncertainties, I think the 7 to 9 gigawatt hour, we continue to have a healthy margin.

好的，實際上對於儲存合約來說，大多數情況下，我們都會改變法律保護。其中一些是像上限定價，其他一些是我們在關稅上分享的。因此，即使存在各種不確定因素，我認為在 7 至 9 千兆瓦時的產能下，我們仍然能夠保持健康的利潤率。

Yeah, Brian, it just add one comment that the sourcing, flexibility will only help us in 2026, the sourcing we are seeing sourcing flexibility with our suppliers start to build and ramp up their capacities outside China, but most of this will only help us in 2026. So 2025, we have to deliver all the storage project from China. So the impact does have the (inaudible) does have an impact. And because of that, some of customers asking to push their project deliver to next year. And when we have this non-China battery cell option ready, so that accounts for most of the change on the guidance.

是的，布萊恩，我只想補充一點，採購彈性只會在 2026 年對我們有幫助，我們看到的採購彈性是我們的供應商開始在中國以外建立和提升產能，但其中大部分只會在 2026 年對我們有幫助。因此，到2025年，我們必須從中國交付所有儲存項目。因此影響確實有（聽不清楚）確實有影響。正因為如此，一些客戶要求將他們的專案交付推遲到明年。當我們準備好這種非中國電池單元選項時，這將佔指導方針的大部分變化。

Super helpful color. Appreciate that. And then you discussed some pull forward of demand in China given some policy changes there. Do you have any sort of expectation for a shipment growth next year in China?

超有用的顏色。非常感謝。然後您討論了由於中國的一些政策變化，中國的需求有所提前。您對明年中國出貨量的成長有什麼預期嗎？

Yan, do you want to answer this question? The shipping growth in China.

嚴，你想回答這個問題嗎？中國航運增長。

Yeah. So, we're still waiting for policy clarification at provincial level, which is the action points, right? So, before that, the investment decisions in China are mostly on health. So, however, from our understanding about the market dynamics, we think, it will have a few months of adjustment in China. But after that, once the clarification, once we have the policy clarification, they should, it should, it will not be a disaster. The demand will start to pick up. But however, I think the second half will be weak.

是的。所以，我們還在等待省級政策的明確，也就是行動要點，對嗎？因此，在此之前，中國的投資決策主要集中在健康方面。然而，根據我們對市場動態的了解，我們認為中國市場將經歷幾個月的調整期。但在此之後，一旦澄清，一旦我們有了政策澄清，他們就應該，這應該不會是一場災難。需求將開始回升。但儘管如此，我認為下半年將會表現疲軟。

Next year, we don't really know because there's a lot of uncertainty. We're still waiting for the policy clarification. However, we believe the healthy demand for storage is going to come because in the past, we, most of the storage demand in China was kind of mandatory on solar. So, but since this policy change, the policy 133, think it will be, we'll have a free trade market. The trading market will actually bring in a real demand for storage. So we anticipate a healthy growth of high quality storage projects coming up next year.

明年我們真的不知道，因為有很多不確定性。我們仍在等待政策澄清。然而，我們相信對儲存的健康需求即將到來，因為過去，中國的大部分儲存需求都是強制性的太陽能。所以，但自從這項政策改變以來，政策 133，我們認為我們將擁有一個自由貿易市場。交易市場實際上會帶來真實的儲存需求。因此，我們預計明年高品質儲存項目將健康成長。

Perfect. Really appreciate the color. Thank you.

完美的。真的很欣賞這個顏色。謝謝。

Thank you.

謝謝。

Alan Law, Jefferies.

艾倫‧勞 (Alan Law)，傑富瑞 (Jefferies)。

Thanks for taking my question. A follow-up question on the 6% margin contribution of this project. So I would like to know, there's a fixed rate agreement covering the project, so based on the accounting standard, we will have to record the the profit, but I would like to know is it a one-off, just to confirm, is it a one-off impact on (inaudible) or like how does it amortize over this.

感謝您回答我的問題。關於該項目 6% 利潤貢獻的後續問題。所以我想知道，有一個涵蓋該項目的固定利率協議，因此根據會計準則，我們必須記錄利潤，但我想知道它是否是一次性的，只是為了確認，它是否對（聽不清楚）有一次性影響，或者它如何攤銷。

So, accounting perspective, it's a one off in time until Q2 this year.

因此，從會計角度來看，這是今年第二季之前的一次性事件。

Okay. Thank you. That's clear. So, Q3 onwards, unless you have other projects that are the consolidated, otherwise, there is only one of Q2, right?

好的。謝謝。這很清楚。所以，從第三季開始，除非您有其他合併的項目，否則，第二季就只有一個了，對嗎？

Thank you. And then next question is, just follow up on US policies because there's a lot of turbulence in the past one week, would like to check on your view because the language is actually saying that at least for the next two years if a FOCE is not having the majority state, then we'll be still able to get 45x.

謝謝。下一個問題是，請關注美國的政策，因為過去一周出現了很多動盪，我想確認一下您的觀點，因為語言實際上是說，至少在接下來的兩年裡，如果 FOCE 沒有佔據多數席位，那麼我們仍然可以獲得 45 倍。

Just to reconfirm our company CSIQ, it is actually Canadian owned and also it's for your understanding, it's not an FOCE or what do you think about that?

只是為了再次確認我們的公司 CSIQ，它實際上是加拿大所有，而且為了您的理解，它不是 FOCE，或者您對此有何看法？

Canadian solar itself is Canadian owned and also traded on NASDAQ. So there are common shareholders from the US stock market. Now Canadian Solar holds about 65% of CSI solar, which is trading on Shanghai stockings, which is organized under the Chinese corporate law and is trading on Shanghai Stock Exchange.

加拿大太陽能公司本身為加拿大所有，並在納斯達克上市。所以有來自美國股市的普通股東。目前，阿特斯陽光電力持有中山太陽能約65%的股份，中山太陽能是依照中國公司法組成的，在上海證券交易所上市交易。

And then CSI Solar invested into the facilities in US, including the module factory in Mesquite, also the cell factory in Jeffersonville. Indiana, and it storage factory in Shelbyville, Kentucky. So if the current language in the new draft stay as the, as yet, then all of these three facility will be impacted. We'll have to change the ownership structure in order to fit with the comply with the new laws.

隨後CSI Solar在美國投資建造了工廠，包括位於梅斯基特的組件工廠和位於傑斐遜維爾的電池工廠。印第安納州，以及位於肯塔基州謝爾比維爾的倉儲工廠。因此，如果新草案中的現有措辭保持不變，那麼這三個設施都將受到影響。我們必須改變所有權結構以適應新的法律。

But on the other hand, as you see that, CSIQ, which is a Canadian company, still holds 65% and it's the controlling shareholder for CSI Solar. So, I suppose that it will be much easier for us to change the structure or maybe to invite some third party investors, in order to make all three entities complying with the new rules. But I also mentioned when I answered the previous question from Philip Shen that, what we, what released by the House and the means committee two days ago was only the first draft.

但另一方面，正如您所看到的，加拿大公司 CSIQ 仍然持有 65% 的股份，並且是 CSI Solar 的控股股東。因此，我認為我們可以更輕鬆地改變結構或邀請一些第三方投資者，以使所有三個實體都遵守新規則。但我在回答 Philip Shen 的先前問題時也提到，我們、眾議院和資金委員會兩天前發布的只是初稿。

We expected to go through, made many changes before it become the law. So there's a question of how fast the reconciliation will go through. Some say it's July for the August recess, and some say it's September, so we'll see, we're not expert how the legislature bodies work.

我們預計在其成為法律之前會經歷許多修改。因此，問題在於和解將以多快的速度完成。有人說八月休會是在七月，有人說是在九月，所以我們拭目以待，我們並不了解立法機構是如何運作的。

However, we are sending our comment and opinions through our channels and, so I hope the, final bill will consider all this and final bill will, I hope the final bill will truly help to make manufacturing back to get manufacturing and go back to China rather than otherwise, and that I hope.

然而，我們正在透過我們的管道發送我們的評論和意見，所以我希望，最終的法案將考慮到所有這些，最終的法案將，我希望最終的法案將真正有助於讓製造業回歸中國，而不是其他方式，我希望如此。

Go back to the US, sorry.

回美國去吧，抱歉。

Yeah, this is about US. What I'm, I've been talking is about US is about a house (inaudible) draft of the new requirement and also I answered your question on FEOC.

是的，這是關於美國的。我一直在談論的是美國關於新要求的一份內部（聽不清楚）草案，而且我也回答了您關於 FEOC 的問題。

Thank you. So, next question is a, because I saw on a news mentioning Canadian so that is having a (inaudible) commitment in Ethiopia. So we'd like to know what's your plan there in terms of modules or plan for sales.

謝謝。那麼，下一個問題是，因為我在新聞上看到提到加拿大，所以它對埃塞俄比亞做出了（聽不清楚）承諾。因此，我們想知道您在模組或銷售計劃方面有什麼計劃。

Yeah, that's not true. We would, our business development people have travelled around the world, so they travel to Ethiopia, but, we haven't made any committed, like decision to any activities in Ethiopia yet.

是的，事實並非如此。我們的業務開發人員已經走遍了世界各地，所以他們前往埃塞俄比亞，但是，我們還沒有對在埃塞俄比亞開展任何活動做出任何承諾或決定。

I see. So there's some probably due diligence, but not up to the stage of commitment yet.

我懂了。因此，可能需要進行一些盡職調查，但尚未達到承諾的階段。

Right, we are developing and exploring options, but no, there has, we haven't committed anything.

是的，我們正在開發和探索各種選擇，但是，我們還沒有做出任何承諾。

I see. So, my last question is about the guidance, would like to know, like, the guidance, module guidance has came down. I would like to know if that main the difference versus last time is that mainly the US volume.

我懂了。所以，我的最後一個問題是關於指導的，想知道指導、模組指導已經出來了。我想知道與上次相比，主要的區別是否主要是美國的數量。

Yan, should you answer this question?

嚴，你該回答這個問題嗎？

Yeah. So the US annual volume stays, so we don't have a new update on that.

是的。因此，美國年度產量保持不變，因此我們沒有關於此的最新更新。

Okay, so yeah, so what means the shipment to US is pretty much still what we guided before, and this volume reduction reflects the reduction of unprofitable sales to other market.

好的，是的，這意味著運往美國的貨物量基本上仍然與我們之前指導的一致，而這種數量的減少反映了對其他市場的無利可圖的銷售的減少。

Understood. That's very clear. I'll pass. Thanks a lot for my questions.

明白了。這非常清楚。我會通過。非常感謝您的提問。

Praneet Satish, Wells Fargo.

富國銀行的 Praneet Satish。

Thank you. Good morning. Just going back to the FEOC draft legislation, I guess the question here is on your Indiana, Kentucky facilities. Does it make sense to put those on pause? You maintained your CapEx guidance $1.2 billion, but until you get final clarity on the rules, is there a chance that maybe some of that CapEx comes down, you ship the projects.

謝謝。早安.回到 FEOC 立法草案，我想這裡的問題是關於您的印第安納州、肯塔基州設施。暫停這些有意義嗎？您維持了 12 億美元的資本支出指導，但在您最終明確規則之前，是否有可能將部分資本支出降低，然後交付專案。

Or are you confident that the draft language will change with the future revisions or you see a path here that even if it doesn't change through ownership changes, bringing in third party investors that you can comply with the rules.

或者您是否相信草案語言會隨著未來的修訂而改變，或者您是否看到了一條道路，即使它不透過所有權變更而改變，引入第三方投資者也可以遵守規則。

The Jefferson, Jeffersonville in Indiana factory, as you mentioned is in the middle of the building, construction, and also the equipment. Well they're shift in the phase of most of the Phase 1 equipment. And those Phase 1 equipment, which is about 2 gigawatts of capacity, solar cell capacity, those equipment, stay in the warehouse in Indiana right now waiting for the building to complete.

正如您所提到的，位於印第安納州傑斐遜維爾的工廠正處於建築、施工和設備的中間階段。嗯，他們正在轉變第一階段的大部分設備。第一階段的設備，容量約為 2 千兆瓦，太陽能電池容量，這些設備目前存放在印第安納州的倉庫中，等待建設完工。

So I think. Phase 1 of about 2 gigawatt, the, Jeffersonville facility, we have announced a proposal, a plan to reach 5 gigawatt and we cut into Phase 1 and Phase 2. So we are quite conservative when it comes to actually spending money. So at this moment, Phase 1, as I said, equipment are almost there. So we will, I think we will complete the Phase 1.

我也這麼認為。第一階段約為 2 千兆瓦，在傑斐遜維爾工廠，我們已經宣布了一項提案，一項達到 5 千兆瓦的計劃，我們分為第一階段和第二階段。因此，在實際花錢方面，我們相當保守。因此，正如我所說，目前第一階段的設備已基本到位。所以我認為我們將完成第一階段。

Well, and the Phase 2 decision will probably be made, in the summer or after summer, the final decision. And so I hope they, I think this budget reconciliation will come to a conclusion, final form, either before the summer or after the summer. So in a way that we are not spending a lot of money on the Jeffersonville, other than what we already committed.

嗯，第二階段的決定可能會在夏天或夏天之後做出，最終決定。因此我希望他們，我認為這項預算協調將在夏季之前或夏季之後得出結論，並形成最終版本。因此，除了我們已經承諾的資金外，我們不會在傑斐遜維爾計畫上花費太多資金。

And so the schedule is in parallel with the schedule of this budget reconciliation process. So if somehow, we think the final language will be reasonable and final language about FEOC will be reasonable. And, but also as you said, we are ready to change the capital structure once the policy is clear, the language is clear, the legal explanation is clear, then we will make our existing capacity to meet with the whatever the new language. But we don't want to completely stop. So we are still continuing with design, some final like detailed design of the factory and also certain simple construction work.

因此，該時間表與預算協調過程的時間表是一致的。因此，如果我們認為最終語言是合理的，並且有關 FEOC 的最終語言也是合理的。而且，正如您所說，一旦政策明確、語言明確、法律解釋明確，我們就準備好改變資本結構，然後我們將利用現有的能力來滿足任何新的語言要求。但我們並不想完全停止。因此我們仍在繼續設計，一些最終的工廠詳細設計以及一些簡單的施工工作。

Because the IRA itself only have a few years of shelf time, right? Even the previous original IRA already contains a face down after 2030. And I think by 2035, right, all the ITC and also the advanced manufacturing acquired ITC, the so-called 45x will stop. So, that's the only final time, so only finite amount of time, limited amount of time.

因為 IRA 本身只有幾年的有效期，對嗎？甚至之前原來的IRA也已經包含了2030年後的面值。我認為到 2035 年，所有 ITC 以及先進製造業獲得的 ITC，即所謂的 45x 都將停止。所以，那是唯一的最後一次，所以只有有限的時間，有限的時間。

So if we delay too much, the project will become uneconomic. So we'll balance this and we're spending some money to keep the construction and design work going. And however, for most of the equipment other than what we are already shipping, we will probably only be able to make decision. Let's say in August or September. I hope by that time, this budgetary cancellation is already completed.

因此，如果我們拖延太多，該專案將變得無經濟效益。因此，我們會平衡這一點，並花一些錢來維持建造和設計工作的進行。然而，對於除了我們已經運送的設備之外的大多數設備，我們可能只能做出決定。比如說八月或九月。我希望到那時，這項預算取消已經完成。

Okay, that's that's helpful. And maybe one more on the recurrent business here. So you know at least in the US, PPA prices are going up and we're seeing on the gas side for CCGT, it costs and prices are going up a lot with data center demand. So is that giving you more headroom on the solar and storage side to increase PPA prices and absorb a lot of the cost increases that we're seeing from all the trade and policy uncertainty, and then are you any more inclined for long term ownership of assets versus monetization in the current environment?

好的，這很有幫助。也許這裡還有關於經常性業務的討論。所以你知道至少在美國，PPA 價格正在上漲，而我們看到 CCGT 的天然氣方面，其成本和價格隨著資料中心需求的增加而大幅上漲。那麼，這是否會為您在太陽能和儲存方面提供更多空間來提高 PPA 價格並吸收我們在所有貿易和政策不確定性中看到的大部分成本增加，那麼在當前環境下，您是否更傾向於長期擁有資產而不是貨幣化？

Yeah, Ismael, this is a question for you.

是的，伊斯梅爾，這是問你的問題。

Thank you, Xiaohua. Thanks for the question. We see the market in a similar way as you do. We are experiencing the same things you are referring to. In general, with the capital we have a limited capability to hold a certain amount of projects and we are continuously assessing every time a project reaches the RTB status, whether we should sell it or we should keep it in operation.

謝謝你，小花。謝謝你的提問。我們對市場的看法與您類似。我們也正在經歷您所提到的同樣的事情。整體來說，我們資金有限，只能保住一定數量的項目，而且每當一個項目達到 RTB 狀態時，我們都會不斷評估是應該出售它還是應該繼續運作。

So, how many projects we keep in operation is a decision taken based on the amount of money we have available. And the status of the project and which are better to hold and better to sell. But the market remained very attractive. This is what we are seeing both in the US and Europe.

因此，我們維持多少個專案的運作取決於我們可用的資金量。以及項目的狀況以及哪些更適合持有和出售。但市場仍然非常有吸引力。這正是我們在美國和歐洲所看到的情況。

Got it. Okay. Thank you.

知道了。好的。謝謝。

This concludes our question and answer session. I would like to turn the conference back over to management for closing remarks.

我們的問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。

Thank you and 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 and take care and have a great day.

謝謝您，也謝謝您今天的加入我們以及您一直以來的支持。如果您有任何疑問或想要撥打電話，請聯絡我們的投資者關係團隊，祝您有個愉快的一天。

This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.

今天的會議到此結束。現在您可以斷開您的線路了，感謝您的參與。