大全新能源 (DQ) 2023 Q2 法說會逐字稿

Good day, and welcome to the Daqo New Energy Second Quarter 2023 Results Conference Call. (Operator Instructions) Please note that this event is being recorded.

大家好，歡迎參加大全新能源2023年第二季度業績電話會議。 （操作員說明）請注意，該事件正在被記錄。

I'd like to turn the call over to Ms. [Anita Chu], Investor Relations Director. Please go ahead.

我想將電話轉給投資者關係總監 [Anita Chu] 女士。請繼續。

Hello, everyone. I'm [Anita Chu], the Investor Relations of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the second quarter of 2023, which can be found on our website at www.dqsolar.com.

大家好。我是大全新能源投資者關係部的[Anita Chu]。感謝您今天參加我們的電話會議。大全新能源剛剛發布了2023年第二季度的財務業績，您可以在我們的網站www.dqsolar.com上查看該業績。

So today, attending the conference call, we have our new Chairman and CEO, Mr. Xiang Xu; our former CEO, Longgen Zhang; CFO, Mr. Ming Yang and myself.

今天，出席電話會議的有我們的新任董事長兼首席執行官徐翔先生；我們的前任首席執行官張龍根；首席財務官楊明先生和我本人。

So the call today will begin with an update from Mr. Zhang and our new Chairman and CEO, followed by his comments on market and operations, and then Mr. Yang will discuss the company's financial performance for the quarter and the year. And after that, we'll open the floor to Q&A from the audience.

因此，今天的電話會議將首先由張先生和我們的新任董事長兼首席執行官介紹最新情況，然後是他對市場和運營的評論，然後楊先生將討論公司本季度和全年的財務業績。之後，我們將開放觀眾問答環節。

So before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth are forward-looking statements that are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

因此，在我們開始正式發言之前，我想提醒您，今天電話會議中的某些陳述，包括預期的未來運營和財務業績以及行業增長，都是根據美國私人證券訴訟的安全港條款做出的前瞻性陳述。 1995 年改革法案。

These statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements. Further information regarding these and other risks is included in the reports or documents we have filed with or furnished to the Securities and Exchange Commission.

這些陳述涉及固有風險和不確定性。許多因素可能導致實際結果與任何前瞻性陳述中包含的結果存在重大差異。有關這些風險和其他風險的更多信息包含在我們向美國證券交易委員會提交或提供的報告或文件中。

These statements only reflect our current and preliminary view as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. All information provided in today's call is as of today, and we undertake no duty to update such information, except as required under applicable law.

這些陳述僅反映我們截至今天的當前和初步觀點，可能會發生變化。我們實現這些預測的能力受到風險和不確定性的影響。今天的電話會議中提供的所有信息均為截至今天的信息，我們不承擔更新此類信息的義務，除非適用法律要求。

Also during the call, we'll occasionally reference monetary amounts in U.S. dollar terms. Please keep in mind that our functional currency is the Chinese RMB. We offer these translations into U.S. dollars solely for the convenience of the audience.

此外，在電話會議期間，我們偶爾會提及以美元計算的金額。請記住，我們的功能貨幣是人民幣。我們將這些翻譯成美元只是為了方便觀眾。

So now I'll pass it on to Mr. Zhang.

現在我就轉達給張老師。

Thank you, [Anita]. Good morning, good evening. Efficient operation of our polysilicon facilities in the second quarter of 2023 resulted in the production volume of 45,306 metric tons, representing an increase of 11,458 metric tons as compared to the previous quarter.

謝謝你，[安妮塔]。早上好，晚上好。 2023年第二季度，多晶矽裝置高效運行，產量達45,306噸，較上季度增加11,458噸。

As our Phase 5A 100,000 metric tons polysilicon project in Inner Mongolia reached full production capacity in June. Our production cost decreased by 8.3% from Q1 to $6.92 per kg, primarily due to improvements in manufacturing efficiency as well as a reduction in the cost of metallurgical grade silicon.

內蒙古5A期10萬噸多晶矽項目已於6月全面達產。我們的生產成本比第一季度下降了 8.3% 至每公斤 6.92 美元，這主要是由於製造效率的提高以及冶金級矽成本的降低。

For the quarter, we generated $230 million in EBITDA with strong operating cash flow and continued to maintain a strong balance sheet with no financial debt. At the end of the quarter, the company had a cash balance of $3.2 billion and a combined cash and banking notes receivable balance of USD 4 billion.

本季度，我們產生了 2.3 億美元的 EBITDA，運營現金流強勁，並繼續保持強勁的資產負債表，沒有任何金融債務。截至本季度末，該公司現金餘額為 32 億美元，現金和應收銀行票據余額合計為 40 億美元。

With an addition of our new Inner Mongolia Phase 5A facility, our total annual polysilicon nameplate capacity has expanded to 205,000 metric tons. For the third quarter, we expect our total polysilicon production volume to be approximately 55,000 metric tons to 57,000 metric tons, representing an increase of 21% to 26% as compared to Q2 2023. Full year production is expected to be approximately 193,000 metric tons to 198,000 metric tons of polysilicon, representing an increase of 44% to 48% as compared to 2022.

隨著我們新建的內蒙古 5A 期工廠的建成，我們的多晶矽年總產能已擴大至 205,000 噸。第三季度，我們預計多晶矽總產量約為 55,000 噸至 57,000 噸，較 2023 年第二季度增長 21% 至 26%。全年產量預計約為 193,000 噸至 193,000 噸。多晶矽產量19.8萬噸，較2022年增長44%至48%。

In addition, based on our (technical difficulty) figure, our new semiconductor grade polysilicon project with 1,000 metric tons annual capacity is expected to start pilot production by the end of September of this year. With our fully digitized and highly automated production system that optimizes operational efficiency, improves cost structure and further enhances production product quality for the N-type polysilicon product. We are confident that our Inner Mongolia project will further enhance the company's competitive edge.

另外，根據我們的（技術難度）數據，我們新建的年產1000噸半導體級多晶矽項目預計將於今年9月底開始試生產。憑藉我們全數字化、高度自動化的生產系統，優化了N型多晶矽產品的運營效率，改善了成本結構，並進一步提高了生產產品質量。我們有信心內蒙古項目將進一步提升公司的競爭優勢。

The polysilicon industry experienced increased challenges and substantial price volatility during the second quarter. Several new polysilicon facilities and new entrants finally started production with some reaching full capacity -- production capacity in the first half of this year. The shortage of polysilicon of the past 2 years came to an end. The increased supply ultimately led to relatively oversupply and excess industry inventory.

第二季度，多晶矽行業面臨更多挑戰，價格大幅波動。幾家新的多晶矽工廠和新進入者終於開始生產，其中一些已達到滿負荷生產——今年上半年的產能。過去兩年的多晶矽短缺局面結束。供給的增加最終導致相對供給過剩和行業庫存過剩。

In an effort to gain market shares with inferior quality products, new entrants and some established industry players engaged in aggressive pricing, expectations of lower future pricing in the market led to delays and reductions of downstream customer orders, as well as aggressive pricing required by customers.

為了以劣質產品爭奪市場份額，新進入者和一些老牌行業參與者採取激進的定價方式，市場對未來定價較低的預期導致下游客戶訂單的延遲和減少，以及客戶要求的激進定價。

The situation wasn't significantly in the second half of May, as inventory reduction efforts by leading producers led to race to the bottom that saw polysilicon prices decline by approximately 70% at the end of the second quarter compared to Q1 levels. In the second half of June, polysilicon prices reached bottom and customers began ordering aggressively at the lower prices.

5月下半月情況並不明顯，主要生產商的庫存減少導致競相抄底，第二季度末多晶矽價格較第一季度下降約70%。 6月下旬，多晶矽價格觸底，客戶開始低價積極訂購。

By middle of July, we saw an approximately 15% to 20% price recovery compared to the bottom reached in June. Recently, we have also seen an increase in the ASP premium for N-type polysilicon with a meaningful increase in demand volume. We expect that this trend will further benefit us as the industry transitions to next-generation N-type technology.

到 7 月中旬，價格較 6 月觸底回升約 15% 至 20%。最近，我們還看到N型多晶矽的平均售價上漲，需求量顯著增加。我們預計，隨著行業向下一代 N 型技術過渡，這一趨勢將進一步使我們受益。

We shipped 53,502 metric tons of polysilicon in Q2, meaningfully more than our production level and a substantial increase over Q1 shipments. Polysilicon inventory at our original Xinjiang facility decreased to less than a week's production volume, as our facility in Inner Mongolia is newly established its products require customer qualification before we can ship meaningful volumes to customers, and the qualification process took longer than anticipated due to market volatility during the period.

我們第二季度的多晶矽出貨量為 53,502 噸，明顯高於我們的生產水平，並且比第一季度的出貨量大幅增加。我們原來的新疆工廠的多晶矽庫存減少至不到一周的產量，因為我們在內蒙古的工廠是新建立的，其產品需要客戶資格認證才能向客戶運送有意義的產量，並且由於市場原因，認證過程比預期的時間要長期間波動。

At the end of the quarter, with customer orders on hand that covered all our inventory, we had practically sold all shippable products, the customer qualification process for the products of our Inner Mongolia facility completed successfully in July. And at the end of July, with brisk customer orders and demand, we had further reduced our polysilicon inventory to a very healthy level of approximately 1-week of production across our 2 facilities.

截至本季度末，我們現有的客戶訂單覆蓋了我們所有的庫存，我們幾乎已經售出了所有可發貨的產品，內蒙古工廠產品的客戶資格流程已於 7 月順利完成。 7 月底，隨著客戶訂單和需求的旺盛，我們進一步將多晶矽庫存減少到非常健康的水平，即我們 2 座工廠的生產量約為 1 週。

For the second quarter, we recorded approximately USD 19.7 million in foreign exchange loss, or approximately $0.26 per ADS. Near the end of April, the company received approximately RMB 4.96 billion in cash dividends from its subsidiary Xinjiang Daqo, which was approximately USD 716.7 million based on the exchange rate on the date the dividend funds were received.

第二季度，我們錄得約 1,970 萬美元的外匯損失，即每份 ADS 約 0.26 美元。臨近4月底，公司從子公司新疆大全收到現金股利約49.6億元人民幣，按收到股利當日的匯率計算，約合7.167億美元。

During the quarter, the company converted approximately RMB 1.85 billion to U.S. dollar to fund our share repurchase program, as the USD to Renminbi currency -- Chinese currency exchange rate fluctuated significantly during the month of May and June. And as required by accounting standards, we recorded an unrealized foreign exchange loss, primarily related to our quarter end cash balance of RMB 3.1 billion held by the company in an offshore accounts.

本季度，由於美元兌人民幣匯率在 5 月和 6 月期間大幅波動，公司將約 18.5 億元人民幣兌換為美元，為我們的股票回購計劃提供資金。根據會計準則的要求，我們記錄了未實現的外匯損失，主要與公司在離岸賬戶中持有的季末現金餘額31億元人民幣有關。

Regarding the company's share buyback program. At the end of July, the company had already repurchased 4.16 million ADS for approximately USD 188.7 million under the current program with average cost of approximately USD 45.32 per ADS combined with the program completed in 2022. In aggregate, the company has already repurchased 6 million ADS for approximately USD 308.6 million.

關於公司股票回購計劃。截至7月底，該公司已根據當前計劃以約1.887億美元回購了416萬股ADS，加上2022年完成的計劃，每份ADS的平均成本約為45.32美元。總計，該公司已回購了600萬股ADS。美國存託股份約為 3.086 億美元。

The continuous cost reduction in solar PV products and the associated reduction in solar energy generation costs are expected to create substantial additional green energy demand, which is likely to exceed most analysis expectations. It is generally expected that solar PV will eventually become one of the most important energies to power the world.

太陽能光伏產品成本的持續降低以及太陽能發電成本的相應降低預計將創造大量額外的綠色能源需求，這可能會超出大多數分析的預期。人們普遍預計太陽能光伏最終將成為為世界提供電力的最重要的能源之一。

In addition, as the solar PV technology keeps evolving, we believe that the increasing needs for polysilicon of very high purity, such as N-type polysilicon will help differentiate us from our competitors, while most of our competitors will likely struggle with the current market environment. Daqo New Energy has one of the best balance sheets in the industry with no financial debt, and this will help us with the current market environment successfully.

此外，隨著太陽能光伏技術的不斷發展，我們相信對極高純度多晶矽（例如N型多晶矽）的需求不斷增長將有助於我們從競爭對手中脫穎而出，而我們的大多數競爭對手可能會在當前市場中掙扎環境。大全新能源擁有業內最好的資產負債表之一，沒有財務債務，這將有助於我們成功應對當前的市場環境。

We are optimistic that as the solar end market continues to grow and as our customers continue to expand capacity, particularly for N-type solar products, prices will improve. We will continue to maintain solid growth and capture the long-term benefits of growing global solar PV market.

我們樂觀地認為，隨著太陽能終端市場的持續增長以及我們的客戶不斷擴大產能，特別是N型太陽能產品，價格將會改善。我們將繼續保持穩健增長，並抓住不斷增長的全球太陽能光伏市場的長期利益。

Moving to outlook and guidance. The company expects to produce approximately 55,000 metric tons to 57,000 metric tons of polysilicon during the third quarter of 2023. The company expects to produce approximately 193,000 metric tons to 198,000 metric tons of polysilicon for the full year of 2023, inclusive of the impact of the company's annual facility maintenance.

轉向展望和指導。該公司預計在 2023 年第三季度生產約 55,000 噸至 57,000 噸多晶矽。該公司預計 2023 年全年生產約 193,000 噸至 198,000 噸多晶矽，包括公司年度設施維護。

This outlook reflects Daqo New Energy's current and preliminary view as of the date and this press release and may be subject to change. The company's ability to achieve these projections is subject to risks and uncertainties. See safe harbor statement at the end of this press release.

這一展望反映了大全新能源截至本新聞稿發布之日和本新聞稿的當前和初步觀點，可能會發生變化。公司實現這些預測的能力受到風險和不確定性的影響。請參閱本新聞稿末尾的安全港聲明。

Now I will turn to -- the call to our CFO, Ming. Please go ahead.

現在我要打電話給我們的首席財務官 Ming。請繼續。

Thank you, Longgen, and hello, everyone. Thank you for joining our earnings conference call today.

謝謝龍根，大家好。感謝您今天參加我們的財報電話會議。

Now I will discuss our financial results for the second quarter of 2023. Revenues were $636.7 million compared to $709.8 million in the first quarter of 2023 and $1.24 billion in the second quarter of 2022. The decrease in revenue compared to the first quarter of 2023 was primarily due to a decrease in average selling prices, mitigated by increase in sold volume.

現在我將討論我們2023 年第二季度的財務業績。收入為6.367 億美元，而2023 年第一季度為7.098 億美元，2022 年第二季度為12.4 億美元。與2023 年第一季度相比，收入減少了主要是由於平均售價下降，但銷量增加所抵消。

Gross profit was $258.9 million compared to $506.7 million in the first quarter of 2023 and $947 million in the second quarter of 2022. Gross margin was 40.7% compared to 71.4% in the first quarter of 2023 and 76% in the second quarter of 2022. The decrease in gross margin compared to the first quarter of 2023 was primarily due to lower average selling prices, which was partially mitigated by lower production costs.

毛利潤為2.589 億美元，而2023 年第一季度為5.067 億美元，2022 年第二季度為9.47 億美元。毛利率為40.7%，而2023 年第一季度為71.4%，2022 年第二季度為76%。與 2023 年第一季度相比，毛利率下降主要是由於平均售價較低，但生產成本下降部分緩解了這一影響。

Selling, general and administrative expenses were $43.3 million compared to $41.3 million in the first quarter of 2023 and $14.4 million in the second quarter of 2022. The slightly higher SG&A expenses compared to the previous quarter was due to higher shipment volume that resulted in higher shipping expenses.

銷售、一般和管理費用為4,330 萬美元，而2023 年第一季度為4,130 萬美元，2022 年第二季度為1,440 萬美元。銷售、一般和行政費用與上一季度相比略高，原因是發貨量增加導致發貨量增加花費。

SG&A expenses during the second quarter also includes $27.5 million in noncash share-based compensation costs related to the company's share incentive plans compared to $28 million in the first quarter of 2023.

第二季度的銷售、管理及行政費用還包括與公司股權激勵計劃相關的 2750 萬美元非現金股權補償成本，而 2023 年第一季度為 2800 萬美元。

R&D expenses were $2.2 million compared to $1.9 million in the first quarter of 2023 and $2.7 million in the second quarter of 2022. R&D expenses vary from period to period and reflect R&D activities that take place during the quarter. And most of our R&D activities for the quarter related to product purity improvement-related activities.

研發費用為 220 萬美元，而 2023 年第一季度為 190 萬美元，2022 年第二季度為 270 萬美元。研發費用因時期而異，反映了本季度發生的研發活動。本季度我們的大部分研發活動都與產品純度改進相關活動有關。

Foreign exchange losses were $19.7 million compared to 0 in the first quarter of 2023 and also in the second quarter of 2022. The significant volatility and fluctuation in the U.S. dollar to Chinese New Year exchange rate during this quarter resulted in primarily an unrealized foreign exchange loss related to our quarter end cash balance of RMB 3.1 billion held by the company in an offshore account.

外匯損失為 1,970 萬美元，而 2023 年第一季度和 2022 年第二季度均為 0。本季度美元兌農曆新年匯率的大幅波動和波動主要導致未實現外匯損失與我們在離岸賬戶中持有的季末現金餘額31 億元人民幣有關。

And as a result of the above mentioned, income from operation was $214 million compared to $463.8 million in the first quarter of 2023 and $927.6 million in the second quarter of 2022. Operating margin was 33.6% compared to 65.3% in the first quarter of 2023 and 74.6% in the second quarter of 2022.

綜上所述，運營收入為 2.14 億美元，而 2023 年第一季度為 4.638 億美元，2022 年第二季度為 9.276 億美元。運營利潤率為 33.6%，而 2023 年第一季度為 65.3% 2022年第二季度為74.6%。

Net income attributable to Daqo New Energy shareholders was $103.7 million compared to $278.8 million in the first quarter of 2023 and $627.8 million in the second quarter of 2022. Earnings per basic ADS was $1.35 compared to $3.56 in the first quarter of 2023 and $8.36 in the second quarter of 2022.

大全新能源股東應占淨利潤為1.037億美元，而2023年第一季度為2.788億美元，2022年第二季度為6.278億美元。每股基本ADS收益為1.35美元，而2023年第一季度為3.56美元，2022年第二季度為8.36美元。 2022 年第二季度。

Adjusted net income, non-GAAP attributable to the Daqo New Energy shareholders, including noncash share-based compensation costs, was $134.5 million compared to $310 million in the first quarter of 2023 and $630 million in the second quarter of 2022. Adjusted earnings per basic ADS was $1.75 compared to $3.96 in the first quarter of 2023 and $8.39 in the second quarter of 2022.

調整後歸屬於大全新能源股東的非公認會計原則淨利潤（包括非現金股份補償成本）為 1.345 億美元，而 2023 年第一季度為 3.1 億美元，2022 年第二季度為 6.3 億美元。美國存託憑證為1.75 美元，而2023 年第一季度為3.96 美元，2022 年第二季度為8.39 美元。

EBITDA was $230 million for the quarter compared to $490 million in the first quarter of 2023 and $955 million in the second quarter of 2022. EBITDA margin was 36% compared to 69% in the first quarter of 2023 and 76.8% in the second quarter of 2022.

本季度EBITDA 為2.3 億美元，而2023 年第一季度為4.9 億美元，2022 年第二季度為9.55 億美元。 EBITDA 利潤率為36%，而2023 年第一季度為69%，2022 年第二季度為76.8%。 2022 年。

Now on the company's financial condition. As of the June 30, 2023, the company had $3.169 billion in cash, cash equivalents and restricted cash compared to $4.1 billion as of March 31, 2023, and $3.3 billion as of June 30, 2022. As of June 30, 2023, the noticeable balance was $798.5 million compared to $791 million as of March 31, 2023, and $1.27 billion as of June 30, 2022. Notes receivables represent bank notes with maturity within 6 months.

現在介紹一下公司的財務狀況。截至2023年6月30日，該公司擁有31.69億美元的現金、現金等價物和限制性現金，而截至2023年3月31日為41億美元，截至2022年6月30日為33億美元。截至2023年6月30日，可觀餘額為7.985 億美元，而截至2023 年3 月31 日為7.91 億美元，截至2022 年6 月30 日為12.7 億美元。應收票據是指6 個月內到期的銀行票據。

And now on the company's cash flow. For the 6 months ended June 30, 2023, net cash provided by operating activities was $786 million compared to $1.13 billion in the same period of last year. And for the 6 months ended June 30, 2023, net cash used in investing activities was $495.7 million compared to net cash used in investment activities was $80 million in the same period of 2022.

現在談談公司的現金流。截至2023年6月30日的6個月，經營活動提供的現金淨額為7.86億美元，而去年同期為11.3億美元。截至 2023 年 6 月 30 日的 6 個月，投資活動使用的現金淨額為 4.957 億美元，而 2022 年同期投資活動使用的現金淨額為 8,000 萬美元。

Net cash used in investment activities in the first half of 2023 was primarily related to the capital expenditures on the company's polysilicon project in Baotou City, Inner Mongolia. And for the 6 months ended June 30, 2023, net cash using finance activities was $477.5 million compared to net cash provided by financing activities was $1.58 billion in the same period of 2022.

2023年上半年投資活動使用的現金淨額主要與公司位於內蒙古包頭市的多晶矽項目的資本支出有關。截至 2023 年 6 月 30 日的 6 個月，使用融資活動的淨現金為 4.775 億美元，而 2022 年同期融資活動提供的現金淨額為 15.8 億美元。

The net cash used in financing activity in the first half of 2023 was primarily related to $174 million in the company's share repurchases and $306.6 million in dividend payments made by the company Xinjiang Daqo subsidiary to its minority shareholders.

2023年上半年融資活動使用的現金淨額主要與公司股票回購1.74億美元以及新疆大全子公司向少數股東支付的股息3.066億美元有關。

And that concludes our prepared remarks. And operator, we will now open the floor for questions.

我們準備好的發言就到此結束。接線員，我們現在開始提問。

(Operator Instructions) First question will be from Philip Shen of ROTH MKM.

（操作員說明）第一個問題將由 ROTH MKM 的 Philip Shen 提出。

Longgen, sorry to see you leave. And I was wondering if you could touch on your personal situation and give us some color as to timing and detail around what you might do next? It sounds like from the release that you're leaving effective immediately, but you're on the call today. So just curious, if there's anything you can share?

龍根，很遺憾你離開了。我想知道您是否可以談談您的個人情況，並告訴我們一些關於您下一步可能做什麼的時間和細節？從發布的消息來看，您似乎要立即離職，但您今天要接聽電話。所以只是好奇，有什麼可以分享的嗎？

Thank you, Philip. I think I'm working for the company more than 5 years, and I know everybody well. And -- then also, remember, our new CEO and Chairman, his stay in Daqo is longer than me. Basically, he also knows this industry very well. Even during the past 5 years, we were working together. And so I think giving personal -- I think family personal reason, I'm leaving, but I think still I turn over the control to Mr. Xu. I think -- I hope -- I think he will direct the company to the next high step.

謝謝你，菲利普。我想我在這家公司工作了5年多了，我對每個人都很了解。然後，還要記住，我們的新任首席執行官兼董事長，他在大全的逗留時間比我長。基本上他對這個行業也很了解。即使在過去的5年裡，我們也一直在一起工作。因此，我認為出於個人——我認為家庭個人原因，我要離開，但我認為我仍然將控制權交給了徐先生。我認為——我希望——我認為他將帶領公司邁向下一個高峰。

Did I answer your question, Philip?

我回答你的問題了嗎，菲利普？

Yes. Shifting over to pricing. You talked about the dynamics of how pricing fell in Q2, and then there was a bit of a recovery. Can you talk about what you see for polysilicon pricing in Q3, Q4 and also 2024? How much higher or lower could poly pricing go in 2024?

是的。轉向定價。您談到了第二季度價格下跌的動態，然後出現了一些復甦。您能談談您對第三季度、第四季度以及 2024 年多晶矽定價的看法嗎？ 2024 年多晶矽定價可能會上漲或下跌多少？

I think in last year Q4, during the seasonal and also some downstream clients, I think they're planning to stop demand, shut down the capacity. So almost the 5 bigger polysilicon plants have the inventory by the end of last year. And -- but as the Q1, when -- because Chinese New Year is coming in February, so demand immediately come up.

我認為去年第四季度，在季節性期間以及一些下游客戶，我認為他們計劃停止需求，關閉產能。所以到去年底，5家較大的多晶矽廠幾乎都有庫存。而且——但是作為第一季度的時候——因為農曆新年即將在二月份到來，所以需求立即出現。

So in Q1, the price continue to go up back from, I think, Q4, the bottom almost RMB 80 per kg to 240, but really, because I think new entrants, the inventory, I think, digested. So in Italy, I think to buy, I think in May and June, the price continue go down. especially, I think in June, the price almost go down to the bottom.

因此，在第一季度，價格繼續上漲，我認為，從第四季度的底部幾乎每公斤 80 元到 240 元，但實際上，因為我認為新進入者，庫存已經消化了。所以在意大利，我認為要買，我認為五月和六月，價格會繼續下跌。特別是，我認為在六月份，價格幾乎跌到了底部。

Basically, I think breakeven even, I can call. RMB go to like RMB 55 to RMB 60. Then for some reason, as you know that, by the end of last month, I think 2 companies, I'm not mentioning, okay, they have -- I think the facilities have some sparing the bomb you see, almost one of the big players, almost stop Xinjiang all production.

基本上，我認為盈虧平衡，我可以打電話。人民幣漲到人民幣55 元到人民幣60 元。然後出於某種原因，如你所知，到上個月月底，我認為有2 家公司，我沒有提到，好吧，他們有——我認為設施有一些放過炸彈你看，幾乎是大玩家之一，幾乎停止了新疆的所有生產。

So I think right now, besides I think the market come back, the order is coming, I think, in the pipeline, especially some order in (inaudible) is continuing, we see in Q3, Q4. So the demand right now is a little high. So the price right now back like N-type is around RMB 83 to RMB 85 per kg. The P-type, I think, is around like RMB 65 -- RMB 63, RMB 65 per kg.

所以我認為現在，除了我認為市場會回來之外，訂單正在到來，我認為，在管道中，特別是（聽不清）的一些訂單正在繼續，我們在第三季度、第四季度看到。所以現在的需求有點高。所以現在N型的價格在83-85元/公斤左右。 P型的我覺得大概是65--63元，65元一公斤。

So we think in Q3, we see is very profitable. I think in this situation will continue lasting to October. Then during November and December, another, I think, seasonal come up, the winter is coming. The Western country maybe the Christmas Day, then Chinese New Year is coming. So I think during November, December or January and February, the price definitely go to deep again.

所以我們認為在第三季度，我們看到非常有利可圖。我想這種情況會持續到10月份。然後在 11 月和 12 月期間，我認為另一個季節出現了，冬天即將到來。西方國家也許是聖誕節，然後農曆新年就到了。所以我認為在11月、12月或1月和2月期間，價格肯定會再次走低。

Also, I think as other, if you like -- like Daqo Mongolia, we have full capacity running. Then like TBEA, they also -- the first project in Mongolia is not very successful, okay? Last year, they started trial production, still not full capacity running. But they will now tell the market, they were capacity running by next month.

另外，我認為，如果你願意的話，就像蒙古大全一樣，我們已經滿負荷運行。那麼像特變電工，他們也——蒙古的第一個項目不是很成功，好嗎？去年開始試生產，但尚未滿負荷運行。但他們現在將告訴市場，他們的產能將在下個月運行。

So we see the supply has continued to go up. So I think the next year, the polysilicon price, even next 2 years, especially, I think very clear, the polysilicon produced in China right now, is a different price from polysilicon produced outside of China. For example, like Wacker, OCI because they can easily to traceability to export use their silicon produce final products export to U.S.

所以我們看到供應量持續增加。所以我認為明年多晶矽的價格，甚至未來兩年，特別是，我認為非常清楚，現在中國生產的多晶矽的價格與中國以外生產的多晶矽的價格不同。例如，像Wacker、OCI這樣的公司，因為他們可以很容易地追踪出口使用他們的矽生產的最終產品出口到美國。

Right now, I think next 2 years, Chinese polysilicon maybe were stable, maybe between, I think, around RMB 60 to around RMB 70 -- between RMB 75, I think like that channel. That's what I'm thinking, okay. Then I think this also will push, I think, some Chinese producer -- silicone producer will move outside to China to other locations outside of China to produce silicon.

現在，我認為未來兩年，中國的多晶矽可能會保持穩定，我認為可能在人民幣 60 元到人民幣 70 元之間——在人民幣 75 元之間，我認為就像這個渠道一樣。我就是這麼想的，好吧。然後我認為這也將推動一些中國生產商——有機矽生產商將轉移到中國以外的其他地方生產矽。

As you can see that like in U.S. IRA already attract a lot of company, right now Chinese company to do the module, I think, sell even waiver. So I think that tendency will continue to come in. So I think globally, I think after 2 to 3 years, I think the Chinese maybe (inaudible) the capacity is not only silicon, maybe wafer cell always oversupply right now.

正如你所看到的，像在美國IRA已經吸引了很多公司，現在中國公司做模塊，我認為，出售甚至豁免。所以我認為這種趨勢將繼續出現。所以我認為在全球範圍內，我認為兩到三年後，我認為中國可能（聽不清）產能不僅是矽，也許晶圓電池現在總是供應過剩。

So that's why cost of module price right now from RMB 2 per watt down to like near RMB 1.4 per watt. Definitely the good thing because returns on projects is higher. But that may be stimulate the installation, but also a lot of installation continue going on the market demand and in-store, then go to grid also have come -- have problems, especially in China.

這就是為什麼現在組件價格成本從每瓦2元人民幣降至每瓦近1.4元人民幣。這絕對是件好事，因為項目的回報率更高。但這可能會刺激安裝，而且大量安裝繼續在市場需求和店內進行，然後進入電網也出現了問題，尤其是在中國。

So it's all trade-off. You're thinking you see the module price go down, maybe you will increase II on the project. But in the meantime, you see the connect to the grid delay also will affect the returns on II. So -- but China right now, the market is so hot, we think the rooftop, the SOE , I think it's all going on.

所以這都是權衡。您認為看到模塊價格下降，也許您會增加該項目的 II。但與此同時，您會看到連接到電網的延遲也會影響 II 的回報。所以，但現在中國，市場如此火熱，我們認為屋頂、國有企業，我認為這一切都在發生。

So I don't think any problem. Within 2 years, I think Europeans continue to go -- I think continue to grow. The only thing the over-label force action in Europe is starting 2025 Q2. So I think that's give time to the Chinese producer to move the production outside of China. So I think that's -- you see my -- what I'm thinking to the whole market in the future.

所以我認為沒有什麼問題。兩年之內，我認為歐洲人將繼續前進——我認為繼續增長。歐洲唯一的過度標籤強制行動是從 2025 年第二季度開始。所以我認為這是給中國製片人時間將製作轉移到中國境外。所以我認為這就是——你看我的——我對未來整個市場的想法。

But remember, Daqo is the only one in China right now, know that produce high-quality products can compete with Wacker. So especially, I think as the N-type silicon continue to grow, we already see the price difference between N-type and P is around right now RMB 8 to RMB 10 per kg. So our advantage is very clear. If you look at our Q2, I think the gross margin is almost more than 50%. I think we still can keep our gross margin even, let's say, in Q3, Q4, still above -- even Q4 still above 30%. I think 20% is our premium compared with other players, competitors based on the quality and the cost effective and the scale.

但請記住，大全是目前中國唯一一家，知道生產高質量的產品可以與瓦克競爭。特別是，我認為隨著 N 型矽的持續增長，我們已經看到 N 型和 P 型矽之間的價格差異目前約為每公斤 8 至 10 元人民幣。所以我們的優勢非常明顯。如果你看看我們的第二季度，我認為毛利率幾乎超過 50%。我認為我們仍然可以保持我們的毛利率，甚至在第三季度、第四季度仍然高於——甚至第四季度仍然高於 30%。我認為，基於質量、成本效益和規模，與其他參與者、競爭對手相比，我們的溢價是 20%。

Great. That was a lot of color. You said something very interesting just now about how China -- Chinese producers could launch and ramp capacity outside of China to serve the U.S. and other -- maybe even Europe.

偉大的。那是很多顏色。你剛才說了一些非常有趣的話，關於中國——中國生產商如何在中國境外啟動和提高產能，為美國和其他國家——甚至歐洲服務。

Middle East.

中東。

So I was wondering if you could highlight -- right. So can you talk about -- like do you guys have plans to ramp up facilities outside of China? And then how many metric tons do you see? Are there announcements already of who could be ramping? And which countries and what's the timing of when those things -- when those facilities could ramp?

所以我想知道你是否可以強調一下——是的。那麼您能否談談你們是否有計劃在中國以外的地區擴大設施？然後你看到有多少公噸？是否已經宣布了哪些人可能會加入？哪些國家以及這些設施何時可以投入使用？

And then also, you talked about this price delta between Chinese and non-Chinese polysilicon pricing. Can you talk about what the magnitude of that premium is? A few -- a couple of months ago, I think it was something around $10 delta. What is the non-China poly price now? And do you expect that difference to maintain? Or do you think that could get closer over time?

然後，您還談到了中國和非中國多晶矽定價之間的價格差異。您能談談溢價的大小嗎？幾個月前，我認為 Delta 值約為 10 美元。現在非中保價格是多少？您預計這種差異會持續下去嗎？或者你認為隨著時間的推移，這種情況會變得更接近嗎？

Basically, if you look at the figure today, outside of China silicon, majority is Wacker, OCI and Hemlock. I think add together, it's around 80,000 tons. That cannot meet, I think, even U.S. market, 50 GW, let's say, 50 GW, I think, needed at least, I think, 120,000 metric tons, right? Of course, I think the U.S. is not only just polysilicon module. There may be also same thing in other stuff.

基本上，如果你看今天的數字，除了中國矽之外，大多數是瓦克、OCI和Hemlock。我想加起來大概有八萬噸左右。我認為，即使是美國市場，50吉瓦，我認為，50吉瓦，我認為，至少需要12萬噸，對嗎？當然，我認為美國不僅僅是多晶矽組件。其他東西可能也有同樣的情況。

So we see, basically, I think Europe, U.S. U.S. is a typical market is not only besides you see the -- I think I stimulus because also the political issues. For example, the antidumping, the tariff, all the stuff, CBD, AD and plus, I think, over-label force that reaction. All these, I think, you can see today, for example, like Trina, I think they use Wacker materials produced in Vietnam from wafer cell module. This can easily selling, I think the module to U.S. around $0.40 per watt.

所以我們看到，基本上，我認為歐洲、美國是一個典型的市場，除了你看到的之外，我認為我的刺激措施還有政治問題。例如，反傾銷、關稅、所有的東西、CBD、AD，再加上我認為過度標籤迫使這種反應。所有這些，我想，你今天可以看到，例如，像天合光能，我認為他們使用越南生產的瓦克材料矽片電池模塊。這很容易賣，我認為該模塊到美國每瓦大約 0.40 美元。

Also, I think (inaudible) do the same thing. So I think in the U.S. market right now, the market can absorb high module price. It's already there, I think. Then as I think the U.S. market continue asking for -- from I think model to cell and wafer step-by-step required localization materials, I think that will push the capacity from module, cell and silicon.

另外，我認為（聽不清）做同樣的事情。所以我認為目前在美國市場，市場可以吸收高組件價格。我想它已經在那裡了。然後，當我認為美國市場繼續要求從模型到電池和晶圓逐步所需的本地化材料時，我認為這將推動模塊、電池和矽的產能。

The same situation, I think, will happen in Europe. So Europe, I think from you have to -- I think in the future, I think -- I'm not remember that maybe 85% or 65%, you have localization. So that's why I think a lot of Chinese single player will move to Europe.

我認為同樣的情況也會發生在歐洲。所以歐洲，我認為你必須——我想在未來，我想——我不記得也許85%或65%，你有本地化。所以這就是為什麼我認為很多中國單身玩家會搬到歐洲。

But today, you see I think the production ecosystem, I think the environmental, I think Middle East, Southern Asia, maybe same as China, I think it can produce, I think, the lowest cost the effective module products. So it's a lot of right now, company right now because I think go to the Middle East, like Saudi, UAE and Oman, Qatar because they have 20, 30 versions in the Middle East and also the strong relationship right now political relations with China.

但是今天，你看，我認為生產生態系統，我認為環境，我認為中東，南亞，也許和中國一樣，我認為它可以生產成本最低的有效模塊產品。所以現在有很多公司，因為我認為去中東，比如沙特、阿聯酋和阿曼、卡塔爾，因為他們在中東有 20、30 個版本，而且現在與中國的政治關係也很牢固。 。

So we see a lot of China -- you see also a lot of news come out. You can see CECL the news with the industry, right? You can see that. And also U.S., you also can see, I think, LONGi, Jinko expansion in U.S. and Europe, then a lot of right now, I think, not only module, but also, I think the wafer capacity right now is moving to Europe.

所以我們看到了很多中國——你也看到了很多新聞。你可以看看CECL同行業的新聞吧？你可以看到這一點。還有美國，你也可以看到，我認為，隆基、晶科在美國和歐洲的擴張，我認為現在有很多，不僅是模塊，而且，我認為現在的晶圓產能正在轉移到歐洲。

So I think this has happened. I think, become global production, global products. That's a good thing. I think -- that's also very easy. I think the market demand and supply become more healthy.

所以我認為這已經發生了。我認為，成為全球生產、全球產品。這是好事。我認為——這也很容易。我認為市場的需求和供給變得更加健康。

Great. Just a follow-up...

偉大的。只是後續...

Yes.

是的。

Sorry to interrupt you. Just to kind of focus the conversation a little bit. Just I thought you were referring to Chinese polysilicon producers ramping facilities in the -- outside of China. Do you -- are you aware of any of those activities? And do you think you might ramp polysilicon production facilities outside of China? And if so, where would that still be the Middle East and maybe Southeast Asia or would that be some other locations?

抱歉打擾你了。只是為了讓談話稍微集中一點。我以為你指的是中國多晶矽生產商在中國境外擴建設施。您知道這些活動嗎？您認為您可能會在中國境外增加多晶矽生產設施嗎？如果是這樣，那仍然是中東，也許是東南亞，還是其他一些地方？

I think it definitely is, I think, a very -- I think the economic stimulus to attract Chinese producer to move outside of China to produce the silicon. But if you remember that silicon plant is capital-intensive, also environmental, and also in the chemical industry. So the design, the permits, all this, I think, is very high.

我認為這絕對是一種非常經濟的刺激措施，可以吸引中國生產商遷往中國境外生產矽。但如果你還記得矽廠是資本密集型的​​，也是環境密集型的，而且也是化學工業。所以我認為設計、許可等等都非常高。

Daqo also did a lot of research. For example, if we go to U.S., maybe taking 5 years to finish the construction, then 10x the total investment. So it's impossible for us to set the plants in any Chinese, I think, producer to set the plants in U.S. Then if you go to other places like Middle East, you have considering.

大全也做了很多研究。例如，如果我們去美國，可能需要5年才能完成建設，那麼總投資是10倍。所以我們不可能把工廠設在任何一個中國，我認為，生產商在美國設工廠，那麼如果你去中東等其他地方，你就要考慮。

If you set up plants in outside of China, what's the competitive edge, right? If the cost of the final product is still used in the local, then it's no competitive edge. The only chance is traceability the products can go to Europe, go to the U.S. than meeting some.

如果你在中國以外設廠，競爭優勢是什麼，對嗎？如果最終產品的成本仍然用在當地，那麼就沒有競爭優勢。唯一的機會是可追溯性，產品可以去歐洲，去美國，而不是遇到一些。

Today, if you look at the PV link, I think last week, I think, Wacker, I think international polysilicon $27 to, I think, $35 whatever. And China right now is around like $10 to $11. So the difference is there. I think that will continue to exist the reason because the -- I just mentioned that outside of China, silicon only 80,000 tons.

今天，如果你看一下光伏鏈接，我認為上週，我認為，瓦克，我認為國際多晶矽價格為 27 美元到 35 美元。中國目前的價格約為 10 至 11 美元。所以區別是存在的。我認為這個原因將繼續存在，因為——我剛才提到，在中國以外，矽只有8萬噸。

There's no way within 2 years can increase. We also didn't see any existing player, for example, OCI, Wacker, Hemlock, their expansion. So we also didn't see any Chinese producer is going to -- planning to set plants outside of China. At least right now, we didn't see any news.

2年內不可能增加。我們也沒有看到任何現有的玩家，例如OCI、Wacker、Hemlock，以及他們的擴張。因此，我們也沒有看到任何中國生產商計劃在中國境外設立工廠。至少現在，我們還沒有看到任何消息。

Daqo is a little different because we right now, I think, a list in U.S. then also listing Asia. So for a U.S. company, we cannot compete business with, I think, Asia company. So the silicon we only can do the Asia. So that's we'll be careful. I think with the new Chairman and CEO, I think Mr. Xu, I think he has the future planning. I think yes, we are looking at a study anytime if possible.

大全有點不同，因為我認為我們現在有一個美國的列表，然後也列出了亞洲。因此，對於一家美國公司來說，我認為我們無法與亞洲公司競爭業務。所以矽我們只能做亞洲。所以我們要小心。我認為新任董事長兼首席執行官，我認為徐先生，我認為他有未來的規劃。我想是的，如果可能的話，我們正在隨時進行研究。

Okay. That's really very good color. One last question for me. We recently wrote that LONGi's the tained product in the U.S. using Tongwei poly from maybe 4 or 5 months ago, that was the tained was denied entry into the U.S. I know you're ramping your Inner Mongolia facilities now.

好的。這確實是非常好的顏色。最後一個問題要問我。我們最近寫道，隆基是美國受污染的產品，可能是四五個月前使用通威保利生產的，那是受污染的產品被拒絕進入美國。我知道你們現在正在擴大你們的內蒙古工廠。

What is your -- what do you think your ability is to import your poly through Southeast Asia into the U.S. now? Are you a little bit more pessimistic given the LONGi's situation? Or are you still optimistic because you have traceability to the port site?

您認為您現在有什麼能力將您的聚合物通過東南亞進口到美國？考慮到隆基的情況，您是否更加悲觀一些？或者您仍然樂觀，因為您可以追溯到港口站點？

Frankly speaking, I'm very pessimistic. The reason is because Tongwei -- of course, Tongwei's situation is may be a little different. At least they are, I think, have different locations. I think the U.S. customer, I think depend LONGi the reason because as Tongwei on the whole global, they maybe use Xinjiang silicon store. They cannot improve they didn't use, right?

坦白說，我很悲觀。原因是因為通威——當然，通威的情況可能有點不同。我認為至少它們有不同的位置。我認為美國客戶，我認為取決於隆基的原因，因為作為通威在全球範圍內，他們可能使用新疆矽存儲。他們無法改進他們不使用的東西，對嗎？

So yes, we have to see because at this moment, because of critical, I think, conflict, I think, what I want to say is difficult to clear any player right now can be traceability. Any silicon produced in China can be pass the traceability to export to U.S. But -- if we can do to show in Mongolia, starting from all to industry silicon to silicon powder to silicon producer, the whole value chain to show, I think we don't know, right? We have to try it, right? So I can tell you, but we will make our efforts.

所以是的，我們必須看到，因為此時此刻，因為關鍵，我認為，衝突，我認為，我想說的是，現在很難明確任何球員都可以追溯。中國生產的任何矽都可以通過可追溯性出口到美國。但是——如果我們能在蒙古展示，從工業矽到矽粉再到矽生產商，展示整個價值鏈，我認為我們不需要不知道，對吧？我們必須嘗試一下，對嗎？所以我可以告訴你，但我們會努力的。

Our next question will be from Alan Lau, Jefferies.

我們的下一個問題將由 Jefferies 的 Alan Lau 提出。

Happy to hear Longgen is moving on. And thanks for the contribution to the company as well in the past year. So my first question is what is the CapEx plan for the remaining of this year and next year?

很高興聽到龍根繼續前進。也感謝您在過去的一年里為公司做出的貢獻。所以我的第一個問題是今年剩餘時間和明年的資本支出計劃是什麼？

Okay. So if you look at the CapEx plan, okay, so I would say in the first half, right, so I think for -- from our financial statements, are approximately $495.7 million was used in investing activities, and that's pretty much used for CapEx, mostly related to our Inner Mongolia Phase 2. And some of it is (inaudible) Mongolia Phase 1.

好的。因此，如果你看一下資本支出計劃，好吧，我想說的是，在上半年，對，所以我認為，從我們的財務報表來看，大約4.957 億美元用於投資活動，這幾乎用於資本支出，主要與我們的內蒙古第二階段有關。其中一些是（聽不清）蒙古第一階段。

And then for the second half, we're currently planning an additional $750 million in CapEx. In aggregate, this is mostly used for Inner Mongolia Phase 2, which is under construction, right, now. And then less than $100 million will be in the final payments to Inner Mongolia Phase 1.

對於下半年，我們目前計劃追加 7.5 億美元的資本支出。總的來說，這主要用於目前正在建設中的內蒙古二期。那麼內蒙古一期工程的最終付款將不到1億美元。

So I think in aggregate, for the full year, we were planning roughly $1.25 billion in CapEx. So that's the current CapExn plan right now.

因此，我認為全年我們計劃的資本支出總計約為 12.5 億美元。這就是目前的資本支出計劃。

So another question is, since the average selling pol price in Q2 is lower than the average market price in the market, so I would like to ask how -- is the company selling more in July -- June instead of April? And what is this -- what is the split between the different months because the prices have been declining also?

那麼另一個問題是，由於第二季度的平均銷售價格低於市場的平均市場價格，所以我想問一下，該公司在七月份的銷售量是否比四月份更多？這是什麼——不同月份之間的差異是多少，因為價格也在下降？

First of all, I don't know where you got the ASP -- market ASP, then you can make a decision we are below ASP. But I can tell you because we are as a company digest all the inventory. So basically, yes, we're sliding -- our price is very competitive, but compare our quality, I still think is challengeable. We still is very profitable.

首先，我不知道你從哪裡得到的ASP——市場ASP，那麼你可以做出決定，我們低於ASP。但我可以告訴你，因為我們作為一家公司正在消化所有庫存。所以基本上，是的，我們正在下滑——我們的價格非常有競爭力，但比較我們的質量，我仍然認為具有挑戰性。我們仍然非常有利可圖。

So if you look at Tongwei, I think their whole industry together, I think the increase -- the profit in the second quarter almost cutting half less than half. We still have more than 50% increase hail -- couple of half, more than high than the half. So I don't think you -- it's apple-to-apple. I still think we're selling pretty good, I think, ASP to the good clients, yes.

所以如果你看看通威，我認為他們的整個行業加在一起，我認為增長——第二季度的利潤幾乎削減了一半不到一半。我們的冰雹增幅仍然超過 50%——有一半，比一半還要高。所以我不認為你——這是同類的。我仍然認為我們向優質客戶銷售的 ASP 相當不錯，是的。

Because they are guiding that they are selling at around RMB 120 per kilogram, so I saw our numbers around 97 or 98, including tax. So that's why that's a question. Maybe there's some timing difference. I'm not sure.

因為他們指導價是每公斤120元左右，所以我看到我們的數字在97或98左右，含稅。所以這就是為什麼這是一個問題。也許有一些時間上的差異。我不知道。

Yes. It's maybe not apple-to-apple. Really, we're not to comment another company, but that's a factor. We are -- I think the figure we tell you.

是的。這可能不是蘋果對蘋果的情況。確實，我們不會評論另一家公司，但這是一個因素。我們是——我想是我們告訴你的數字。

Understand. So how about the share buyback pace because -- since the buyback in Q2 was not very aggressive. So can I assume the company will accelerate the buyback in Q3 because you have more than $500 million left?

理解。那麼，股票回購的步伐如何，因為第二季度的回購併不是非常激進。那麼我是否可以假設公司會在第三季度加速回購，因為你還剩下超過 5 億美元？

So yes, I think we still have $500 million -- more than $500 million left on the company's -- the parent company's balance sheet in the offshore account, which we will use for the share buyback program. And the share buyback program continues to be in place and has not been changed.

所以，是的，我認為我們在離岸賬戶中仍然有 5 億美元——公司的母公司資產負債表上還剩下 5 億多美元，我們將把它用於股票回購計劃。股票回購計劃仍然有效，沒有改變。

And certainly, we will look forward to support the share price especially now with the new Chairman and CEO onboard. And I think as well our new plans for the company. And certainly, I think and obviously subject to for some market conditions, our share price and other factors, things like that, but we will continue to execute on our share buyback program.

當然，我們將期待支撐股價，尤其是在新任董事長兼首席執行官上任的情況下。我也認為我們對公司的新計劃。當然，我認為顯然會受到某些市場條件、我們的股價和其他因素的影響，但我們將繼續執行我們的股票回購計劃。

But we assure I think we're going to finish the $700 million purchase program, right, by the end of the year.

但我們保證，我認為我們將在今年年底前完成 7 億美元的採購計劃，對吧。

That's the current expectation.

這是目前的預期。

I think that's right.

我認為這是對的。

So yes, that's quite positive. And my last question is -- what is the view on aggressive expansion by others? Because some of the peers are actually having concrete due diligence in Saudi. So I wonder if we are also investigating the expansion plan in Saudi or other places where we see more relevant or more feasible for us?

所以是的，這是非常積極的。我的最後一個問題是——其他人對激進擴張有何看法？因為一些同行實際上正在沙特進行具體的盡職調查。所以我想知道我們是否也在調查沙特或其他我們認為對我們更相關或更可行的地方的擴張計劃？

Okay. We did investigate in overseas expansion in the past, actually quite actively, and we did actually even sent our teams overseas to do due diligence. And we continue to think and there are a lot of challenges to overseas expansion, particularly, for example, around the higher production costs and the sustainability of the price premium and as well as the market opportunities. So we certainly are continuing to monitor the various opportunities, but I think as of now, the company has no plan to do overseas expansion right now.

好的。我們過去確實在海外拓展方面進行了調查，實際上是非常積極的，甚至我們還派了團隊去海外做盡職調查。我們繼續認為，海外擴張面臨很多挑戰，特別是圍繞更高的生產成本和溢價的可持續性以及市場機會。因此，我們當然會繼續關注各種機會，但我認為截至目前，該公司還沒有計劃進行海外擴張。

The next question will come from Ji Chao of Goldman Sachs.

下一個問題將由高盛的季超提出。

Can I ask what's the portion of the N-type poly for the first half this year? And how -- what kind of a portion would you expect for the full year? And also, we note that the second quarter operating cash flow is actually negative. Can you also share why is that?

請問今年上半年N型多晶的佔比是多少？您預計全年會得到怎樣的份額？此外，我們注意到第二季度的運營現金流實際上為負。您也可以分享一下這是為什麼嗎？

Okay. Ji Chao, thank you very much for your questions.

好的。紀超，非常感謝您的提問。

So with regard to N-type, so the percentage keeps improving. So in Q1, it was roughly in the range of 10% to 20%. And actually, for Q2, we've already increased it to the range of 20% to 30%, I think based on the company's, both in the market conditions and the market demand from the customers and also the price premium and that's afforded in the market.

所以對於N型來說，所以這個比例在不斷提高。所以在第一季度，大約在 10% 到 20% 的範圍內。實際上，對於第二季度，我們已經將其提高到 20% 到 30% 的範圍，我認為根據公司的情況，無論是市場狀況還是客戶的市場需求，還有價格溢價，這是在市場。

So I think towards the end of Q2, now that price premium is in RMB 10 to RMB 15 per kilogram range for N-type relative P-type, we are actually modifying our process and optimizing our process to produce more N-type. I think in the second half, right now, our expectation is that N-type will constitute somewhere between 30% to 50% of our production.

所以我認為到第二季度末，現在N型相對P型的價格溢價在每公斤10到15元人民幣的範圍內，我們實際上正在修改我們的工藝並優化我們的工藝以生產更多的N型。我認為在下半年，現在，我們的預期是 N 型將占我們產量的 30% 到 50% 之間。

So obviously, Xinjiang is a more mature process and -- but the equipment has a little bit more limitation on the entire percentage, but we think we can improve it further. But Inner Mongolia is in the process of improving its quality and ramping up. So we're very optimistic that over time, the Inner Mongolia N-type percentage will increase meaningfully.

顯然，新疆是一個更成熟的工藝，但是設備對整個百分比的限制有點多，但我們認為我們可以進一步改進它。但內蒙古正在提質增效。因此，我們非常樂觀地認為，隨著時間的推移，內蒙古 N 型人口的比例將會顯著增加。

Let me follow-up on the second question. Can you repeat your second question again?

我來跟進第二個問題。你能再重複一遍你的第二個問題嗎？

Sure. The second quarter operating cash flow seems to be negative. Can I ask why is that?

當然。第二季度運營現金流似乎為負。請問這是為什麼呢？

The negative is -- for the 6 months, we had $786 million, I think the operating cash flow.

負面的是——在這 6 個月裡，我們的運營現金流為 7.86 億美元。

Right, right. But it seems that the first quarter cash flow is like more than $800 million. So it seems like the second quarter is slightly negative?

是的是的。但第一季度現金流似乎超過8億美元。這麼看來第二季度是有點負面的？

It's probably related to our bank note sales. Let me follow-up with you on the topic.

這可能與我們的鈔票銷售有關。讓我跟您跟進這個話題。

Next question will be from [Rocky Lin] [AIIM] Investments.

下一個問題將來自 [Rocky Lin] [AIIM] Investments。

So my question is, so we have changes in our management team. And I want to ask due to our (inaudible) management, do we have plan to launch new business or do new investments?

所以我的問題是，我們的管理團隊發生了變化。我想問一下，由於我們（聽不清）的管理層，我們是否計劃開展新業務或進行新投資？

I think the change of the new management team, I think Mr. Xu is the Chairman and CEO new. I think he's also the biggest shareholder and the controller -- and the Asia controller. I think yes, maybe I think in the future, definitely, we were looking to do some study. But we still, I think we're focused on our existing business.

我認為新的管理團隊的變化，我認為徐先生是新的董事長兼首席執行官。我認為他也是最大的股東和控制人——以及亞洲控制人。我想是的，也許我想在未來，我們肯定會做一些研究。但我認為我們仍然專注於現有業務。

And as we lay down 3- to 5-year strategy, you see extremely do in the industry silicon metal, then also we were the poly, I think 1,000 semiconductor products is welcome our -- are start production starting, I think, Q3. So our strategy didn't change. Of course, we are looking at other opportunities, maybe overseas, maybe downstream. But right now, we will announce there really.

當我們制定 3 到 5 年戰略時，你會看到矽金屬行業做得非常好，然後我們也是多晶矽，我認為我們歡迎 1,000 種半導體產品——我認為，從第三季度開始生產。所以我們的策略沒有改變。當然，我們正在尋找其他機會，也許是海外的，也許是下游的。但現在，我們真的會在那裡宣布。

Okay. And my next question is do we consider to go in private because we have a lot of cash and this cash maybe somehow cover our market cap. So do you consider to go private?

好的。我的下一個問題是，我們是否考慮私有化，因為我們擁有大量現金，而這些現金可能以某種方式覆蓋我們的市值。那麼您考慮私有化嗎？

I think privatization -- with going to privatization is not management team to make decision and we have to go through the whole shareholders. But definitely, one thing is clear, I think the valuation between Asia and U.S. share is -- the difference is higher.

我認為私有化——進行私有化不是管理團隊做出的決定，我們必須經過全體股東的同意。但有一點是明確的，我認為亞洲和美國股票之間的估值差異更大。

So right now, we only have a channel is going to throw Asia to declare dividends to buyback the U.S. shares. So it's anti-diluted. As you can see, right? So I think we think that the price can continue as the variation in U.S. market can continue to go up.

所以現在我們只有一個渠道就是拋亞洲宣派股息來回購美國股票。所以它是反稀釋的。正如你所看到的，對吧？因此，我認為，隨著美國市場的變化繼續上升，價格可能會繼續上漲。

But I want to remind you, by the June 23 -- July 23 next year does mean after we IPO in Asia after 3 years, the U.S. company holding 73% of Asia, we can sell it, start reselling. So that means we have another channel. We can sell the Asia to get the money then back to U.S. market to buyback the U.S. shares.

但我想提醒大家，到明年6月23日——7月23日，確實意味著我們在亞洲IPO三年後，美國公司持有亞洲73%的股份，我們可以把它賣掉，開始轉售。這意味著我們還有另一個渠道。我們可以賣掉亞洲股票來獲得資金，然後回到美國市場回購美國股票。

So basically, we think in the future, if the valuation is so different, you see, we can sell that to (inaudible) definitely we will reduce the circulating shares, you see. And that's, I think, to push in the market, right? But with privatization, I don't think so for long-term because we also want to U.S. shareholders to get -- to share our benefits.

所以基本上，我們認為在未來，如果估值如此不同，你看，我們可以將其出售給（聽不清），我們肯定會減少流通股，你看。我認為這就是推動市場，對嗎？但對於私有化，我不認為長期如此，因為我們也希望美國股東分享我們的利益。

Our next question will be from Leo Ho (inaudible)

我們的下一個問題將來自 Leo Ho（聽不清）

This is Leo Ho from Daiwa Capital Markets. A couple of questions. I would like to ask one by one if I may.

我是大和資本市場公司的 Leo Ho。有幾個問題。可以的話我想一一詢問。

The first question is regarding share buyback. I just would like to confirm that, so our current plan is that we are going to spend the entirety of the USD 700 million within this year. Am I correct?

第一個問題是關於股票回購。我只是想確認一下，所以我們目前的計劃是，我們將在今年內花完這7億美元。我對麼？

I would say -- let me just say that I think with some $700 million program is in place. And I think there has been no changes to that. I think certainly, the company and the management team will continue to monitor the market and repurchase the shares. Yes. I think based on the share repurchase program, yes.

我想說——我只想說，我認為大約 7 億美元的計劃已經到位。我認為這一點沒有改變。我認為公司和管理團隊肯定會繼續監控市場並回購股票。是的。我認為根據股票回購計劃，是的。

My second question is regarding the second quarter production number. I noticed that we have produced 45,000 tons eventually. But according to your first quarter guidance, we should be producing around 55,000 tons in the second quarter. May I know what is the reason behind the 10,000-ton discrepancy? Are we doing like any retrofit for our old or new capacity? What's the reason behind? And if we are doing retrofit, can you briefly tell us what capacity or which -- in which provinces that we are doing?

我的第二個問題是關於第二季度的產量。我注意到我們最終生產了45,000噸。但根據你們第一季度的指導，我們第二季度的產量應該在 55,000 噸左右。請問萬噸級差異的原因是什麼？我們是否正在對舊產能或新產能進行改造？背後的原因是什麼？如果我們正在進行改造，您能否簡要告訴我們我們正在哪些省份進行改造？

I think I'm just looking at our previous guidance. I think we guided to 44,000 to 46,000 tons of production for Q2. So we actually produced more -- pretty much in line with our previous guidance. So it is basically in line. I think as we ramp up our Inner Mongolia as we expected. And then it's for the Q2 that was not what we're expecting, in, I think, 55,000 to 57,000 metric tons. So that's reflecting the full ramp-up of the Inner Mongolia facility.

我想我只是在看我們之前的指導。我認為我們第二季度的產量指導為 44,000 至 46,000 噸。所以我們實際上生產了更多——幾乎與我們之前的指導一致。所以基本是一致的。我認為，隨著我們對內蒙古的發展正如我們所預期的那樣。第二季度的產量沒有達到我們的預期，我認為是 55,000 到 57,000 噸。這反映了內蒙古工廠的全面啟動。

So are we doing any like retrofit in the second quarter?

那麼我們在第二季度會進行類似的改造嗎？

I think if you look at the end of Q1, we have inventory almost, I think [20,000] tons. So in Q2, we produced 45,000 tons. So then we're selling 51,000 tons, almost 52,000 tons. So we still have some -- an inventory in Q2. It's 10,000, 450,000 -- yes, it's a 10,550 tons. So I think the figure is correct.

我認為，如果你看看第一季度末，我們的庫存幾乎是[20,000]噸。所以在第二季度，我們生產了 45,000 噸。那麼我們的銷量是 51,000 噸，幾乎是 52,000 噸。所以我們在第二季度仍然有一些庫存。是 10,000、450,000——是的，是 10,550 噸。所以我認為這個數字是正確的。

Okay. Okay. Just a few more question. I just want to know; do we have any forecast for the N-type product within our total production mix for 2024? And also, I would like to know at this point in time, aside from us how many producers in the market do you see are capable manufacturing N-type polysilicon at large scale?

好的。好的。還有幾個問題。我只是想知道;我們對 2024 年總生產組合中的 N 型產品有什麼預測嗎？另外，我想知道，目前除了我們之外，您認為市場上還有多少家生產商有能力大規模生產N型多晶矽？

So I think for 2024, we expect N-type to be greater than 50%. I think, in fact, I think once we'll fully ramp up in terms of our updates to our optimization of our process, we should have N-type in the range of 70% to 90% for the company, especially for next year.

所以我認為到2024年，我們預計N型將大於50%。我認為，事實上，一旦我們全面加強流程優化的更新，我們公司的 N 型比例應該在 70% 到 90% 之間，尤其是明年。

The internal number of producers, I think right now, we are one of the largest producer of N-type and supplier of N-type producers in the market. I think the other main producers include Wacker and then some from Asia silicon and then some from (inaudible), but I think they are the main ones.

內部生產商數量，我認為目前我們是市場上最大的N型生產商和N型生產商供應商之一。我認為其他主要生產商包括瓦克公司，然後是一些來自亞洲矽的生產商，然後是一些來自（聽不清）的生產商，但我認為他們是主要的生產商。

My last question is on joint ventures. I think for amongst large polysilicon producers in China, it seems like we are the only one without any joint venture with downstream customers. Are we planning to form any joint venture in the future? And why we didn't form any of them in the past?

我的最後一個問題是關於合資企業的。我認為在中國大型多晶矽生產商中，我們似乎是唯一一家沒有與下游客戶建立合資企業的公司。我們未來是否計劃組建合資企業？為什麼我們過去沒有形成任何一個？

I mean we won't roll this possibility out. I think in the past, we want to be kind of a pure play and really the primary merchant supplier of polysilicon. And I think that benefited us very well, especially last year, where I think some of our peers have had a JV partners or minority investors have to where we have shared a lot of their offshore income with the shareholders.

我的意思是我們不會推出這種可能性。我認為在過去，我們希望成為一家純粹的多晶矽供應商。我認為這使我們受益匪淺，尤其是去年，我認為我們的一些同行已經有了合資夥伴或少數投資者，我們與股東分享了很多離岸收入。

So obviously, I think with the recent market trends, actually, a number of customers have approached us and indicated the interest in doing minority or JV investments. So that is something that we are in discussion, but there's nothing in concrete to report.

顯然，我認為根據最近的市場趨勢，實際上，許多客戶已經與我們接洽，並表示有興趣進行少數股權或合資投資。所以這是我們正在討論的事情，但沒有任何具體的報告。

(Operator Instructions) Our next question comes from [Frank Fan] with Nomura.

（操作員說明）我們的下一個問題來自野村證券的[Frank Fan]。

My question actually was raised earlier, is about the privatization comment. So no further questions from me.

我的問題實際上是早些時候提出的，是關於私有化評論的。所以我沒有進一步的問題。

Great. Great. Thank you. Thanks for joining our call.

偉大的。偉大的。謝謝。感謝您加入我們的通話。

This concludes our question-and-answer session. I'd like to turn the conference back over to [Anita Chu] for closing remarks.

我們的問答環節到此結束。我想將會議轉回[Anita Chu] 致閉幕詞。

Yes. Thank you, everyone, again for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you and have an awesome day. Goodbye.

是的。再次感謝大家參加今天的電話會議。如果您還有任何疑問，請隨時與我們聯繫。謝謝您，祝您有美好的一天。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。