晶科能源 (JKS) 2020 Q4 法說會逐字稿

Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Corporation Ltd.'s Fourth Quarter 2020 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士、先生們，大家好，感謝您出席晶科能源控股有限公司2020年第四季財報電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄音。

I would now like to turn the meeting over to your host for today's call to Ms. Ripple Zhang, JinkoSolar's Investor Relations Manager. Please proceed, Ripple.

現在我想將會議轉交給東道主，今天與晶科能源投資者關係經理張瑞波女士的通話。請繼續，瑞波。

Thank you, operator. Thank you, everyone, for joining us today for JinkoSolar's Fourth Quarter 2020 Earnings Conference Call. The company's results were released earlier today and available on the company's IR website at www.jinkosolar.com as well as our Newswire Services. We have also provided a supplemental presentation for this earnings call, which can also be found on the IR website.

謝謝你，接線生。感謝大家今天參加我們晶科能源 2020 年第四季財報電話會議。該公司的業績於今天稍早發布，並可在該公司的投資者關係網站 www.jinkosolar.com 以及我們的新聞專線服務上查閱。我們也為本次財報電話會議提供了補充演示文稿，您也可以在 IR 網站上找到此簡報。

On the call today from JinkoSolar are Mr. Li Xiande, Chairman of the Board of Directors and Chief Executive Officer of JinkoSolar Holding Company Ltd.; Mr. Charlie Cao, Chief Financial Officer of JinkoSolar Holding Co. Ltd; and Mr. Gener Miao, Chief Marketing Officer of JinkoSolar Co. Ltd. Mr. Li will discuss JinkoSolar's business operations and company highlights, followed by Mr. Miao, who will talk about the sales and marketing. And then Mr. Cao, who will go through the financials. They will all be available to answer your questions during the Q&A session that follows.

今天接聽晶科能源電話的是晶科能源控股有限公司董事局主席兼執行長李顯德先生；晶科能源控股有限公司財務長曹查理先生；李先生將討論晶科能源的業務運作和公司亮點，隨後苗先生將討論銷售和行銷。然後是曹先生，他將負責財務方面的工作。他們都將在接下來的問答環節回答您的問題。

Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar's public filings with the Securities and Exchange Commission. JinkoSolar does not assume any obligation to update any forward-looking statements except as required under the applicable law.

請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。因此，我們未來的結果可能與今天表達的觀點大不相同。有關此風險和其他風險的更多資訊包含在晶科能源向美國證券交易委員會提交的公開文件中。除適用法律要求外，晶科能源不承擔任何更新任何前瞻性聲明的義務。

It's now my pleasure to introduce Mr. Li Xiande, Chairman and CEO of JinkoSolar Holding. Mr. Li will speak in Mandarin, and I will translate his comments into English. Please go ahead, Mr. Li.

現在我很高興向大家介紹晶科能源董事長兼執行長李顯德先生。李先生會用國語發言，我會將他的評論翻譯成英文。請李先生繼續。

(foreign language)

（外語）

[Interpreted] 2020 was a very challenging year for the solar industry, as it kept its momentum for strong growth despite the year being shrouded in uncertainty as we went through this COVID-19 pandemic globally scale. Although demand for solar installation was affected, and we experienced the domino effect of the global economic slowdown and went through some of the lowest ones, we were still able to recover rapidly as restrictions released in major markets.

[解讀]2020 年對太陽能產業來說是非常具有挑戰性的一年，儘管這一年在全球範圍內經歷了新冠肺炎(COVID-19) 疫情，充滿了不確定性，但太陽能產業仍然保持了強勁增長的勢頭。儘管太陽能安裝需求受到影響，並經歷了全球經濟放緩的骨牌效應，並經歷了一些最低谷，但隨著主要市場限制的解除，我們仍然能夠迅速恢復。

In the second half of 2020, shortages of polysilicon and solar glass, rising shipping costs and the appreciation of RMB, together with the impact of COVID-19, lead to significant volatility in the industrial value chain in a year full of extreme challenges. We continued relentlessly to optimize cost through technical innovation and improved process.

2020年下半年，多晶矽和太陽能玻璃短缺、運輸成本上漲、人民幣升值，加上COVID-19的影響，導致產業價值鏈在充滿極端挑戰的一年中大幅波動。我們繼續不懈地透過技術創新和改進流程來優化成本。

Gross margin in the fourth quarter were within our expectations, and both revenues and shipments for the full year recorded significant growth compared with 2019. Meanwhile, our brand and global distribution channels further demonstrated our strong advantages and resilience during market volatility, and we were able to actually increase market share and solidify our leading status in the global PV industry.

第四季毛利率符合我們的預期，全年營收和出貨量均較2019年實現大幅成長。切實提高市場份額，鞏固我們在全球光電產業的領先地位。

Our solar module shipments during the quarter and for the full year 2020 both hit historical highs. As of the end of 2020, our accumulated module shipments reached 70 gigawatts, making JinkoSolar the world's largest PV manufacturer. We expect our shipment to sustain a growth rate of over 30% in 2021.

我們本季和 2020 年全年的太陽能組件出貨量均創歷史新高。截至2020年底，模組累計出貨量達到70吉瓦，晶科能源成為全球最大的光電製造商。我們預計2021年出貨量將維持30%以上的成長率。

(foreign language)

（外語）

[Interpreted] As the global economy continued to face unprecedented impact from the COVID-19 crisis, the solar industry has shown a solid resilience against the pandemic and achieved rapid recovery amidst positive news and heightened enthusiasm for clean energy.

【解讀】在全球經濟繼續面臨新冠肺炎（COVID-19）危機帶來的前所未有的衝擊之際，太陽能產業在疫情面前表現出了堅實的韌性，並在利好消息和清潔能源熱情高漲的背景下實現了快速復甦。

In 2020, the performance of the global solar market exceed expectations with newly added installations worldwide of approximately 134 gigawatts, an increase of 22% year-over-year compared with 2019. During the pandemic, government introduced stimulus packages, which are should in a way of new opportunities for renewable energy to develop across the global industry chain.

2020年，全球太陽能市場表現超出預期，全球新增裝置量約134吉瓦，較2019年年增22%。

Economic stimulus often leads to large-scale capital investments. These investments will most likely determine the direction of the economic recovery now and for decades to come. More than 170 countries in the world have made specific policy objectives to encourage the development of renewable energy, a unified move that has not only boosted the industry, but made the move to clean energy solutions unstoppable.

經濟刺激往往會導致大規模的資本投資。這些投資很可能決定現在和未來幾十年經濟復甦的方向。全球170多個國家製定了鼓勵再生能源發展的具體政策目標，這項統一措施不僅提振了該產業，也讓清潔能源解決方案的發展勢不可擋。

For the Chinese market, which account for about 1/3 of the world's total new PV installations, the pledge to reach the peak of carbon dioxide emissions by 2030 and carbon neutrality by 2060, cover both considerations for energy safety and economic development by adopting supportive policies and measures in China's near-term decarbonization plans in order to switch electricity generation from fossil fuel to renewable energies as the primary source. China has been accelerating the application of new technologies and the reform of the electricity system.

對於約佔全球光伏新增裝置總量1/3的中國市場來說，2030年二氧化碳排放達峰、2060年碳中和的承諾，既考慮了能源安全，又考慮了經濟發展，採取了支持性措施。中國不斷加速新技術應用和電力體制改革。

Meanwhile, grid parity worldwide has brought rapid development to improve distributed photovoltaic generation and energy storage systems. Following the proliferation of clean energy globally, the solar industry will continue rolling out its ambitious plans and leveraging all opportunities. So we are aimed for strong growth momentum over the next few years.

同時，全球的平價上網帶來了分散式光電發電和儲能係統的快速發展。隨著清潔能源在全球範圍內的擴散，太陽能產業將繼續推出其雄心勃勃的計畫並利用所有機會。因此，我們的目標是在未來幾年實現強勁的成長勢頭。

(foreign language)

（外語）

[Interpreted] Since the fourth quarter of 2020, mismatch between supply and demand drove up the price of polysilicon caused by the relatively long capacity expansion circle for polysilicon production and volatile short-term market sentiment.

【解讀】2020年第四季以來，多晶矽產能擴張週期較長，短期市場情緒波動較大，供需錯配推高多晶矽價格。

At the same time, with the price increases of bulk commodities, higher production costs were passed down the industrial value chain, which resulted in significant price increases in modules. In response some investors in solar power generation have accepted lower yields. However, prices in each upstream and downstream segment continue to fluctuate, and we predict will do so into the second quarter of this year.

同時，隨著商品價格上漲，較高的生產成本向產業價值鏈傳遞，導致組件價格大幅上漲。作為回應，一些太陽能發電投資者已經接受了較低的收益率。然而，上下游各環節的價格仍將持續波動，我們預計這種波動將持續到今年第二季。

Since installations are still likely to increase, and supply is sufficient in most segments of the supply chain, we anticipate that demand for modules will revise once market prices stabilized. While there are still supply shortages, there is enough polysilicon to support over 180 gigawatt for module production. This will help balance demand with supply in the year. We remain optimistic about global installation levels in 2021.

由於安裝量仍有可能增加，且供應鏈大多數環節的供應充足，我們預計一旦市場價格穩定，對組件的需求將會調整。儘管供應仍然短缺，但多晶矽足以支援超過180吉瓦的組件生產。這將有助於平衡今年的需求與供應。我們對 2021 年全球安裝水準保持樂觀。

(foreign language)

（外語）

[Interpreted] The continuous volatility in the industrial value chain further highlighted the resilience to risk of integrated manufacturers. Meanwhile, economic uncertainties continued to concentrate key players and heightened competition for survival of the fittest and rewarded highly adaptive companies to gain more market share. We closely monitor the market trends adjusted with flexibility each link of the production process and continuously optimize our supply chain management throughout our network and partners.

【解讀】產業價值鏈的持續波動進一步凸顯了整合製造商的抗風險能力。同時，經濟的不確定性繼續使關鍵參與者集中，優勝劣汰的競爭加劇，有利於適應性強的公司獲得更多市場份額。我們密切關注市場趨勢，靈活調整生產流程的每個環節，並持續優化我們整個網路和合作夥伴的供應鏈管理。

Firstly, we signed long-term agreements with material suppliers to secure the steady supply of core materials. Secondly, we continued to build symbiotic partnership around upstream and downstream to share resources, especially for segments with more severe supply shortages and actively establish factors forming an industrial ecosystem. In addition, we maintained flexible tracking and storage of alternative technologies and materials to minimize market risk caused by supply chain volatility.

一是與材料供應商簽訂長期協議，確保核心材料穩定供應。二是繼續建構上下游共生夥伴關係，實現資源共享，特別是供應短缺較嚴重的細分領域，積極建構產業生態系統要素。此外，我們對替代技術和材料保持靈活的追蹤和存儲，以最大限度地降低供應鏈波動造成的市場風險。

(foreign language)

（外語）

[Interpreted] As the solar industry enters the era of grid parity around the globe, JinkoSolar continues to expand successfully with more business scenarios and business models, leveraging our brand reputation built on years of global marketing and excellent service.

【解讀】隨著全球太陽能產業進入平價上網時代，晶科能源憑藉著多年全球行銷和優質服務累積的品牌聲譽，不斷成功拓展更多業務場景和商業模式。

We have established a giant foothold to build specific standardized and industrialized energy storage development models in 8 major regions worldwide. At present, we have shipped our energy storage product to the Middle East and Africa, and we'll launch products specially designed for the U.S. and Japanese markets in the second half of 2021.

我們已在全球8個主要地區建立了具體的標準化、產業化儲能發展模式。目前，我們的儲能產品已銷往中東和非洲，2021年下半年我們將推出專為美國和日本市場設計的產品。

Meanwhile, our business in the global distribution market is showing a rapid upward trend, and our products for BIPV systems have been installed in a number of commercial real estate projects in China. JinkoSolar's renowned brand and expert teams continue to drive the successful execution of our business from stable supplies of global customers to localized after-sale services. This guarantee the reliability and the consistency of our products and services.

同時，我們在全球分銷市場的業務呈現快速上升趨勢，我們的BIPV系統產品已安裝在中國多個商業房地產項目中。從全球客戶的穩定供應到在地化的售後服務，晶科能源的知名品牌和專家團隊持續推動我們業務的成功執行。這保證了我們的產品和服務的可靠性和一致性。

(foreign language)

（外語）

[Interpreted] JinkoSolar is committed to promoting the acceleration of carbon neutrality through product innovation and operating excellence. Over the next 1 or 2 years, our technical goal is to reach the highest regulatory efficiency of 25.5% for the entire monocrystalline silicon solar cell and 29% for the multi-junction solar cell. So far, our new generation Tiger Pro flagship products have accumulated orders of over 10 gigawatts. Tiger Pro provides the best match between maturity of the industry and high-efficiency large area products. We expect the Tiger Pro service to account for 40% to 50% of our total shipments this year.

【解讀】晶科能源致力於透過產品創新和卓越營運推動碳中和加速。未來一兩年，我們的技術目標是整個單晶矽電池最高調節效率達到25.5%，多結電池最高調節效率達29%。截至目前，我們新一代Tiger Pro旗艦產品已累積訂單超過10吉瓦。 Tiger Pro提供了行業成熟度與高效大面積產品的最佳匹配。我們預計 Tiger Pro 服務將占我們今年總出貨量的 40% 至 50%。

In addition, we will continue to leverage our leading technical innovation capabilities to promote the development of safe and highly efficient energy systems in response to increasing demand of this space. We have been actively deploying solutions for the solar plus industries, such as technical storage for photovoltaic hydrogen production and integrated PV storage smart system.

此外，我們將繼續利用領先的技術創新能力，推動安全、高效的能源系統的發展，以滿足該領域日益增長的需求。我們積極佈局光伏+產業解決方案，如光伏製氫技術儲存、光伏儲能一體化智慧係統等。

(foreign language)

（外語）

[Interpreted] We remain bullish on the mid- to long-term growth of the solar market space and continue to invest in new production capacity with technical and cost competitiveness. Taking into consideration multiple factors like technical maturity and capability to meet increasing downstream demand for high efficiency products, we expect our in-house annual production capacity of monosilicon wafers, high-efficiency solar cells and modules to reach 33, 27 and 37 gigawatts, respectively, by the end of 2021.

【解讀】我們仍然看好太陽能市場空間的中長期成長，並持續投資具有技術和成本競爭力的新產能。考慮到技術成熟度和滿足下游高效產品日益增長的需求等多重因素，我們預計單晶矽片、高效能太陽能電池和組件的內部年產能分別達到33、27和37吉瓦，到2021年底。

We expect the proportion of our in-house production capabilities to reach over 75% in 2021, which will enable us to become even more resilient to risks and continued volatility of the supply chain and technical upgrades. This long-term investment in our business will help to optimize operational efficiency and increased profitability.

我們預計到2021年，我們的內部產能比例將達到75%以上，這將使我們能夠更好地應對風險、供應鏈持續波動和技術升級。對我們業務的長期投資將有助於優化營運效率並提高獲利能力。

(foreign language)

（外語）

[Interpreted] Before turning over to Gener, I would like to go over our guidance. We expect total solar module shipments to be in the range of 4.5 gigawatt to 5 gigawatt for the first quarter of 2021. Total revenue for the first quarter is expected to be in the range of USD 1.18 billion to USD 1.3 billion. Gross margin for the first quarter is expected to be in the range of 12% to 15%. Based on current estimates, the full 2021 shipments, including wafer, cell and modules to be in the range of 25 gigawatts to 30 gigawatts.

[解釋] 在交給 Gener 之前，我想回顧一下我們的指導。我們預計2021年第一季太陽能模組總出貨量將在4.5吉瓦至5吉瓦之間。第一季毛利率預計在12%至15%之間。根據目前的估計，2021年的全部出貨量（包括晶圓、電池和組件）將在25吉瓦至30吉瓦範圍內。

Thank you, Mr. Li. In the fourth quarter 2020, total shipments of solar modules reached 5.8 gigawatts. And for the full year of 2020, total annual shipments were 18.8 gigawatts. Even though supply and demand remains volatile, we were still able to reach our shipment target for the full year 2020. Our modules were shifted to nearly 160 countries and regions in the world as our overseas markets remain our main shipment destinations with the Asia Pacific, U.S. and Europe accounting for the major portion.

謝謝李先生。 2020年第四季，太陽能模組總出貨量達5.8吉瓦。 2020年全年總出貨量為18.8吉瓦。儘管供需仍然波動，我們仍然能夠完成2020年全年的出貨目標。佔主要部分。

Shipments in Asia Pacific achieved a significant growth of over 60% in 2020. During the fourth quarter, we strategically increased the portion of shipments to emerging markets in order to capture growth opportunities as these economies gradually recover from the pandemic. Our well-recognized solar brand, global network of localized real-time customer service, quality products and advanced technology were major assets that helped mitigate risks and increase our global market share in 2020.

2020年亞太地區的出貨量實現了60%以上的大幅成長。 。我們廣受認可的太陽能品牌、在地化即時客戶服務的全球網路、優質產品和先進技術是幫助我們在 2020 年降低風險並增加全球市場份額的主要資產。

Shipments of high-efficiency monocrystalline products increased significantly from 74% in 2019 to nearly 100% in 2020. In May 2020, we launched a new generation of flagship products the Tiger Pro series, leading the industry to fully enter the era of ultra high-power efficiency above 500 watt-peak. As technology innovation continues to accelerate product integrations, we estimate that shipments of Tiger Pro modules will reach 40% to 50% of total shipment in 2021, which will greatly reduce the LCOE for the customers under same conditions.

高效能單晶產品出貨量從2019年的74%大幅成長至2020年的近100%。峰值。隨著技術創新不斷加速產品集成，我們預計2021年Tiger Pro組件出貨量將達到總出貨量的40%~50%，這將大大降低客戶同等條件下的LCOE。

Recently, we launched a new ultra high-efficiency Tiger Pro products, especially designed for distributed DG market, and well suited for a wide range of distributed scenarios, including industrial and commercial rooftops and residential rooftops. In the future, we will continue to launch premium PV products and diversified solutions and continue to expand our brand influence in the field of distributed generation segments.

近期，我們推出了全新的超高效率Tiger Pro產品，專為分散式分散式電源市場設計，非常適合廣泛的分散式場景，包括工商業屋頂和住宅屋頂。未來，我們將持續推出優質光電產品和多元化解決方案，不斷擴大我們在分散式發電細分領域的品牌影響力。

In the recent price hikes, along the supply chain caused a correlated increase in module prices and pressured downstream installations demand. However, we believe the short-term price rise will have relatively limited impact on demand. Following China's pledge to achieve peak carbon emission by 2030 and carbon neutrality by 2060, state-owned interim prices signed a mandatory target for renewable energy installation. According to client feedback, several major Chinese SOE investors have already lowered yield target for the power generation projects, bringing strong installation expectations for the downstream market.

近期漲價，導致供應鏈上下游組件價格連動上漲，對下游裝機需求造成壓力。但我們認為短期價格上漲對需求的影響相對有限。隨著中國承諾2030年實現碳排放達峰、2060年實現碳中和，國有臨時電價簽署了再生能源裝置強制目標。根據客戶回饋，國內幾大國企業投資者已下調了發電項目的收益率目標，為下游市場帶來強勁的裝機預期。

We believe that newly added PV installations will sustain significant growth momentum in 2021. In the mid-to long term, global transition to clean energy will become irresistible as more and more countries launch policy and grow to cut carbon emissions, demand side incentives are expected to partially offset cost pressure. The solar industry will continue its strong growth momentum.

我們認為，2021年新增光電裝置將維持顯著成長動能。期部分抵銷成本壓力。太陽能產業將繼續保持強勁的成長勢頭。

Next, I will detail each region's market trend. In China, 2021 is the first year of the 14th 5-year plan. And it is also the first year for the solar industry, except the residential sector, to enter into the era of grid parity without subsidies. In one aspect, according to the new 2021 policy draft, projects should be won through bidding. Otherwise, new installation would be approved as a result of reductions of subsidies on existing projects. This will lead to lower price projects going forward and increased solar generation capacity will further drive down the cost of solar power.

接下來我會詳細介紹一下各地區的市場走勢。在中國，2021年是「十四五」規劃的開局之年。這也是太陽能產業除戶用領域之外首次進入平價無補貼時代。一方面，根據2021年新政策草案，項目應以招標方式得標。否則，新的安裝將因現有項目補貼的減少而獲得批准。這將導致價格較低的項目繼續進行，而太陽能發電容量的增加將進一步降低太陽能發電的成本。

Furthermore, because delayed projects not connected to the grid by June 30 will lose subsidies, this will account for the most of the connections to the grid this year. Including residential projects worth 10 gigawatts, the Chinese market is expected to achieve a growth rate of 25% year-over-year and new installation reaching 55 gigawatt level in 2021.

此外，由於6月30日之前未併網的延期項目將失去補貼，這將佔今年併網的大部分。包括10吉瓦的住宅項目在內，預計2021年中國市場將實現25%的年成長，新增裝置將達到55吉瓦的水平。

Average annual installations during the 14th 5-year plan is expected to reach 70 to 90 gigawatt. According to the latest report of Bloomberg New Energy Finance, new solar installation capacity in the U.S. reached a record high of 16.5 gigawatts in 2020. The solar industry showed tenacious vitality in the midst of the pandemic doom and gloom atmosphere and economic contraction.

「十四五」期間年均裝置容量預計將達到70至90吉瓦。根據彭博新能源財經最新報告顯示，2020年美國太陽能新增裝置容量達到16.5吉瓦，創歷史新高。

President Biden has announced that the U.S. will rejoin the Paris Agreement, and the House of Representatives has reintroduced GREEN Act, a critical view that includes a 5-year extension of the solar investment tax credit. The economic recovery policy in the post-COVID era and accelerating decarbonization of the U.S. energy system will further enhance the attractiveness of solar power and energy efficiency.

拜登總統宣布美國將重新加入《巴黎協定》，眾議院重新引入《綠色法案》，其中包括將太陽能投資稅收抵免延長 5 年。後疫情時代的經濟復甦政策和美國能源系統加速脫碳將進一步增強太陽能的吸引力和能源效率。

In 2021, newly added solar installations are expected to exceed 20 gigawatt for the first time. Compared with other renewable energy sources, the price of solar power in the U.S. is very competitive. And the market competition is more rational because of its unique supply-demand relationship and market entry rule.

2021年，新增太陽能裝置容量預計將首次超過20吉瓦。與其他再生能源相比，美國太陽能的價格非常有競爭力。而市場競爭也因其獨特的供需關係和市場進入規則而更加理性。

We are confident about maintaining our leading position in U.S. market with our stable supply capability, excellent customer service and high-quality product advantage. In 2020, our shipments in Asia Pacific market reached a historical high with Vietnam contributing the largest growth in the shipments, affected by expiration of old FIT projects. Japan rushed to install a large number of projects in September 2020. As the economic advantage of rooftop projects continue to grow in Japan, rooftop solar power generation is expected to replace utility-scale projects and become the main source of the newly added power generation capacity for the country.

我們有信心憑藉穩定的供應能力、優質的客戶服務和高品質的產品優勢，保持在美國市場的領先地位。 2020年，我們在亞太市場的出貨量創歷史新高，其中越南的出貨量成長最大，受老FIT計畫到期影響。日本2020年9月搶裝大量項目。

Affected by some adverse factors, including the pandemic and excessively high electricity costs, new installations in India experienced a decline. However, it is worth mentioning that Ministry of New and Renewable Energy will impose tariff of 40% and 25% on solar modules and cells, respectively, from April 2022. This move is expected to stimulate a new round of installation rush before the deadline.

受疫情、電費過高等不利因素影響，印度新增裝置量下降。不過，值得一提的是，新能源和再生能源部將從2022年4月起對太陽能組件和電池分別徵收40%和25%的關稅。熱潮。

Demand in other markets in the region such as Australia is expected to remain stable. According to the European market outlook for the solar power 2020 to 2024, published by SolarPower Europe, the European market reached 18.7 gigawatt of newly installed solar power, producing a double-digit growth of 11% in 2020, the highest growth rate since 2011.

澳洲等該地區其他市場的需求預計將保持穩定。根據SolarPower Europe發布的《2020年至2024年歐洲太陽能市場展望》顯示，歐洲市場新增太陽能裝置量達到18.7吉瓦，2020年實現兩位數成長11%，創2011年以來最高成長速度。

In terms of market performance, the new Renewable Energy Source Act will benefit the development of rooftop installation in Germany, the long-established leader in solar generation, and the residential energy storage is expected to become another emerging growth driver. The spotlight was our spend in 2020 as the country led Europe's subsidy free market growth, and became the third largest solar market in Europe.

從市場表現來看，新的《再生能源法案》將有利於太陽能發電長期領先的德國屋頂安裝的發展，住宅儲能有望成為另一個新興成長動力。 2020 年，我們的支出成為焦點，因為該國引領了歐洲無補貼市場的成長，並成為歐洲第三大太陽能市場。

In January 2021, Spain awarded a total of over 3 gigawatts solar and wind power capacity in the first renewable energy auction held since 2017, with the lowest LCOE for solar at USD 0.018 per kilowatt hour. In addition, solar market in Netherlands, Poland and France all maintained solid momentum. We remain bullish on the long-term development of the European market.

2021年1月，西班牙在自2017年以來舉行的首次再生能源拍賣中授予了總計超過3吉瓦的太陽能和風電容量，太陽能的LCOE最低為每千瓦時0.018美元。此外，荷蘭、波蘭和法國的太陽能市場均保持強勁勢頭。我們仍然看好歐洲市場的長期發展。

Most countries in emerging markets like Latin America and Middle East are actively promoting solar power projects. Applications for solar power generation has been extensive and major driving force for solar power development in emerging markets. Brazil's state-owned energy research office recently announced that it has registered a total of nearly 67 gigawatts of renewable energy projects for auction in June this year, including 1,050 solar projects with a total capacity of over 41 gigawatt.

拉丁美洲、中東等新興市場國家多數都在積極推動太陽能專案。太陽能發電的應用已成為新興市場太陽能發展的廣泛和主要推動力。巴西國營能源研究辦公室近日宣布，今年6月共登記了近67吉瓦的再生能源項目進行拍賣，其中包括1,050個太陽能項目，總容量超過41吉瓦。

The Dubai Supreme Council of Energy recently announced a significant increase in renewable energy share of Dubai's total energy mix. Following a strong recovery from the severe impact of pandemic emerging markets are expected to become a powerful contributor to the development of the global PV industry.

杜拜最高能源委員會最近宣布大幅增加再生能源在杜拜總能源結構中的份額。新興市場在疫情嚴重影響中強勁復甦後，可望成為全球光伏產業發展的有力貢獻者。

We see solar generation becoming widely popular in more and more countries, and the growth of the global solar market will no longer rely on single or dominant market like the U.S., Europe or India and will continue to diversify. The general trend of the global clean energy transition will open up a new growth cycle for solar plus energy storage projects to achieve cost-effective integration of flexible resources in smart distribution grids.

我們看到太陽能發電在越來越多的國家廣泛普及，全球太陽能市場的成長將不再依賴美國、歐洲或印度等單一或主導市場，並將繼續多元化。全球清潔能源轉型的大趨勢將為太陽能+儲能專案開啟新的成長週期，實現智慧配電網靈活資源的高性價比整合。

At present, we have developed diversified solutions for our residential C&I and utility customers in our major markets around the world. We will cooperate with leading companies in the energy storage supply chain to accelerate deployment to the entire energy storage business chain. Recently, we won overall High Achievers award in the 2020 Photovoltaic Module Index Report published by the Renewable Energy Testing Center, our high-performance across 3 essential indicator categories: reliability, performance and the quality demonstrated our commitment to product excellence.

目前，我們已為全球主要市場的住宅工商業和公用事業客戶開發了多元化的解決方案。我們將與儲能供應鏈龍頭企業合作，加速儲能全業務鏈佈局。近日，我們在再生能源檢測中心發布的《2020年光伏組件指數報告》中獲得了整體高成就獎，我們在可靠性、性能和品質三個基本指標類別上的優異表現體現了我們對產品卓越的承諾。

As the world's first global solar manufacturer to join RE100, JinkoSolar was the first company in the industry to sign the global framework principles for decarbonizing heavy industry. In 2021, we will strengthen our distribution channels, expand our network of value-added customer service and bring greater value to our global customers with high-quality reliable modules and premium services.

作為全球第一家加入RE100的全球太陽能製造商，晶科能源是業界第一家簽署重工業脫碳全球框架原則的公司。 2021年，我們將強化通路，拓展加值客戶服務網絡，以高品質可靠的模組和優質服務為全球客戶帶來更大價值。

With that, I will turn it over to Charlie.

這樣，我就把它交給查理了。

Thank you, Gener. In the fourth quarter, driving cost of raw materials and shipping costs, combined with RMB appreciation, put pressure on our profitability. Gross margin was 16% or 14.3%, if excluding the reversal benefit of ADD and CVD, in line with our guidance.

謝謝你，將軍。第四季度，原物料成本和運輸成本的推動，加上人民幣升值，對我們的獲利能力造成壓力。如果排除 ADD 和 CVD 的逆轉收益，毛利率為 16% 或 14.3%，符合我們的指引。

Our long-term competitive advantage in branding and distribution channels and demand for our high-efficiency products and customer services have helped to partially offset pressures from upstream price volatility as costs along the supply chain stabilized, our highly efficient production capacity release and better integration will continue to give us a competitive edge in the industry.

我們在品牌和分銷管道方面的長期競爭優勢，以及對高效產品和客戶服務的需求，有助於部分抵消上游價格波動的壓力，隨著供應鏈成本的穩定，我們高效的產能釋放和更好的整合將有助於降低成本。

Let's go into more details about the quarter now. Total revenue was USD 1.4 billion, a decrease of 1.1% year-over-year. Gross margin was 16% compared to 17% in the third quarter of 2020 and 18.2% in the fourth quarter of 2019. Excluding the ADD, CVD reversal benefit, gross margin was 14.3% in line with our previous guidance.

現在讓我們詳細了解本季的情況。總收入為14億美元，年減1.1%。毛利率為 16%，而 2020 年第三季為 17%，2019 年第四季為 18.2%。 排除 ADD、CVD 逆轉收益，毛利率為 14.3%，與我們先前的指引一致。

Total operating expenses in Q4 were USD 220 million, an increase of 51% sequentially and an increase of 26% year-over-year. The sequential and year-over-year increase was mainly attributable to an increase in disposal and impairment losses on impairments as a result of company's upgrade of production lines.

第四季總營運費用為 2.2 億美元，季增 51%，年增 26%。環比和年成長主要是由於公司生產線升級導致處置和減損損失增加。

Total operating expenses accounted for 15% of total revenues in the fourth quarter of 2020 compared to 10.8% in the third quarter of 2020 and 11.9% in the fourth quarter of 2019. Operating margin was 0.8% in Q4 compared to 6.2% in Q3 and 6.2% in Q4 last year.

2020 年第四季的總營運費用佔總營收的15%，而2020 年第三季為10.8%，2019 年第四季為11.9%。和第三季為6.2%。

EBITDA was USD 100 million compared to USD 144 million in third quarter. Non-GAAP net income was USD 5.1 million, a decrease of 92% year-over-year, which translates into non-GAAP diluted earnings per ADS of $0.11. Taking into account the loss from the change in fair value convertible senior notes and call option due to the sharp increase in stock price of company in Q4, GAAP net loss was USD 57 million.

EBITDA 為 1 億美元，而第三季為 1.44 億美元。非 GAAP 淨利為 510 萬美元，年減 92%，相當於非 GAAP 攤薄後每股美國存託股收益為 0.11 美元。考慮到第四季公司股價大幅上漲導致可轉換優先票據和買權公允價值變動造成的損失，GAAP淨虧損為5,700萬美元。

I'll brief you on our 2020 full year financial results. 2020 was dramatically stronger compared with 2019. Total solar module shipments were 18.8 gigawatts, up 31% year-over-year.

我向大家介紹一下我們2020年全年的財務表現。與 2019 年相比，2020 年大幅成長。

Total revenues were USD 5.4 billion, up 18% year-over-year, benefited from an increase in shipment of solar modules and production volumes of our integrated high increasing capacity as well as cost reduction from company's industry-leading integrated cost structures.

總收入為54億美元，年增18%，受益於太陽能組件出貨量的增加和我們綜合高產能成長的產量以及公司行業領先的綜合成本結構的成本降低。

Gross profit for the full year was USD 945 million, an increase of 13.6% year-over-year. Gross margin was 17.6% compared to 18.3% in 2019. Excluding the ADD CVD reversal benefit, gross margin was 17%, flat with 2019.

全年毛利9.45億美元，年增13.6%。毛利率為 17.6%，而 2019 年為 18.3%。

Operating margin for the full year 2020 was 5.1% compared to 5.8% for the full year 2019. Operating expenses were 12.5% of total revenues in 2020, flat with 2019.

2020 年全年營業利益率為 5.1%，而 2019 年全年營業利益率為 5.8%。

EBITDA was USD 463 million compared to $376 million in 2019. Net debt-to-EBITDA ratio was 3.4x.

EBITDA 為 4.63 億美元，而 2019 年為 3.76 億美元。

Non-GAAP net income was USD 147 million compared to USD 139 million in 2019. This translates into non-GAAP basic and diluted earnings per ADS of $3.28.

非 GAAP 淨利潤為 1.47 億美元，而 2019 年為 1.39 億美元。

Moving to the balance sheet. At the end of fourth quarter, our balance of cash and cash equivalents were USD 1.2 billion compared to USD 943 million by the end of third quarter, and our cash levels significantly improved. AR turnover days improved to 50 days compared to 61 days in Q3. Inventory turnover days were 97 days, flat with the third quarter.

轉向資產負債表。第四季末，我們的現金及現金等價物餘額為12億美元，而第三季末為9.43億美元，現金水準顯著改善。 AR 週轉天數從第三季的 61 天提高到 50 天。庫存週轉天數為97天，與第三季持平。

Total debt was USD 2.8 billion compared to USD 2.5 billion at the end of third quarter and USD 1.9 billion by the end of last year, in which USD 150 million was related to international solar projects. Net debt was USD 1.5 billion compared to USD 1.59 billion third quarter and USD 1 billion by the end of last year.

債務總額為28億美元，而第三季末為25億美元，去年底為19億美元，其中1.5億美元與國際太陽能項目有關。淨債務為 15 億美元，而第三季為 15.9 億美元，去年年底為 10 億美元。

In September 2020, we announced our plan to list our principal operating subsidiaries, Jiangxi Jinko, on the STAR Market in China. By the end of October 2020, Jiangxi Jinko completed an equity financing of RMB 3.1 billion. This process is cruising or progressing smoothly.

2020年9月，我們宣布計劃將主要營運子公司江西晶科在中國科創板上市。截至2020年10月底，江西晶科完成31億元股權融資。這個過程正在順利進行中。

This concludes our prepared remarks. We are now happy to take your questions. Operator, please proceed.

我們準備好的演講到此結束。我們現在很樂意回答您的問題。接線員，請繼續。

(Operator Instructions) Your first question is from Philip Shen, who's from ROTH Capital Partners.

（操作員說明） 您的第一個問題是來自羅仕資本的 Philip Shen 提出的。

With Q1 over now, can you talk about what you see for pricing in Q2 as well as shipments and margins? I know you have not provided official guidance, but any color on the Q2 outlook would be very helpful.

第一季已經結束，您能談談您對第二季定價以及出貨量和利潤率的看法嗎？我知道您尚未提供官方指導，但第二季前景的任何顏色都會非常有幫助。

Philip, the pricing -- from the pricing perspective, your input cost continue to be relatively high, given particularly the polysilicon, the supply bottleneck. And we are seeing the rebalance negotiation with our customers. And the module price globally, including China, are, I think, in the trend to go up to absorb and to reflect the input cost impact.

菲利普，定價－從定價的角度來看，你們的投入成本仍然相對較高，特別是多晶矽的供應瓶頸。我們正在與客戶進行重新平衡談判。我認為，包括中國在內的全球組件價格呈現上漲趨勢，以吸收並反映投入成本的影響。

So we didn't give the guidance for second quarter. But I think overall, the gross margin to be relatively stable throughout the first half year. But we are expecting some positive factors like the solar glasses prices, the market price is down. The RMB, the depreciation looks like it's positive and to offset some input cost pressure from -- specifically the polysilicon impact.

所以我們沒有給出第二季的指導。但我認為整體而言，整個上半年的毛利率相對穩定。但我們預期會有一些正面因素，例如太陽能眼鏡價格上漲，市場價格下跌。人民幣的貶值看起來是正面的，可以抵消一些投入成本壓力——特別是多晶矽的影響。

But I think it's a little bit impact on the global demand from a module perspective because of the high input costs. And I think most of the Tier 1 companies like to balance the shipments versus -- the module shipments versus the high input cost. And so I think the shipments, we are not expecting the Tier 1 companies in the second quarter. And quarter-by-quarter, shipments will have significant increase.

但我認為從模組的角度來看，由於投入成本較高，這對全球需求有一點影響。我認為大多數一級公司喜歡在出貨量與模組出貨量與高投入成本之間進行平衡。因此，我認為，我們預計第二季的出貨量不會達到一級公司的水平。並且逐季度出貨量將會有顯著的成長。

Okay. Charlie, so -- and then as you...

好的。查理，所以——然後你...

Philip, this is Gener. So yes, so regarding the shipment, I think you might have noticed our disclosure of the shipment targets includes a total shipment instead of module-only shipment, which reflecting our strategic flexibilities because right now, we see the unbalanced demand supply from upper stream to downstream right now. So that's why, like Charlie was just saying, we -- our shipment target are still in line with what we planned, but we are keeping some flexibility between wafer, cell and modules in order to mitigate the market risk and try to optimize our margins.

菲利普，這是將軍。所以是的，所以關於出貨量，我想你可能已經注意到我們披露的出貨量目標包括總出貨量而不是僅模組出貨量，這反映了我們的戰略靈活性，因為現在我們看到從上游到下游的需求供應不平衡。因此，正如查理剛才所說，我們的出貨目標仍然符合我們的計劃，但我們在晶圓、電池和組件之間保持一定的靈活性，以降低市場風險並嘗試優化我們的利潤率。

I did notice that in -- was wondering if you could share a little bit more on that, Gener, specifically, how much wafer-only sales or cell-only sales could we see so that we can get to a more accurate module only or module shipments in '21?

我確實注意到 - 想知道你是否可以分享更多一點，Gener，具體來說，我們可以看到多少純晶圓銷售或純電池銷售，以便我們可以獲得更準確的模組或21 年模組出貨量？

We don't have that number yet because we are keeping that flexibilities to make sure that we can adopt our strategy to the current polysilicon price hike. That's why we keep that as a flexible part. But in general, we are still taking module as our main business, but partially our shipments will be wafer or cell, it depends on the margin on the spot market.

我們還沒有這個數字，因為我們保持靈活性，以確保我們能夠針對當前的多晶矽價格上漲採取我們的策略。這就是為什麼我們將其保留為靈活的部分。但總的來說，我們仍然以組件為主要業務，但部分出貨量將是矽片或電池片，這取決於現貨市場的利潤率。

Okay. One other question for me. You guys added, I think, 16 gigawatts or you plan to upsell capacity by the end of this year. Can you give us a little more color on that strategy around the capacity expansion and the focus on why you're investing so much in cell?

好的。還有一個問題想問我。我認為你們增加了 16 吉瓦，或者你們計劃在今年年底之前增加銷售容量。您能否為我們詳細介紹一下有關產能擴張的策略，以及為什麼您要在電池方面進行如此多的投資？

And then help us with the CapEx for 2020 total? And then what do you expect it to be in '21? And how much do you expect that to be from partner contributions in terms of the CapEx?

然後幫助我們了解 2020 年的資本支出總額？那你對 21 年的期望是什麼？就資本支出而言，您預期合作夥伴的貢獻有多少？

The CapEx in 2021 is in the range of USD 1 billion to USD 1.2 billion. Reflecting our investment on the -- dramatically on the solar cell as well as the wafer states stage. And for the strategy of solar cell, it's reflecting our -- in a couple -- in recent 2 or 3 years, we didn't increase our solar cell capacities because we think the technology is not so matured in the last 2 or 3 years. And now the market is shifting the bigger size, high efficient and N-type solar cell technology, and we believe it's the time to increase our solar cell capacity and increase our integration levels. And that is why we increased a little bit more on the solar cell capacity in 2021.

2021年的資本支出在10億美元至12億美元之間。反映出我們在太陽能電池和晶圓狀態階段的投資。對於太陽能電池的策略，它反映了我們在最近兩三年內沒有增加太陽能電池產能，因為我們認為該技術在過去兩三年內還沒有那麼成熟。現在市場正在轉向更大尺寸、高效和N型太陽能電池技術，我們相信現在是增加我們的太陽能電池產能和提高我們的整合水平的時候了。這就是我們在 2021 年稍微增加太陽能電池產能的原因。

Great. And the 2020 CapEx, Charlie?

偉大的。查理，2020 年的資本支出呢？

2020, I didn't have the exact number, but I think it's roughly USD 5 billion. Sorry, it's USD 500 million.

2020年，我沒有確切的數字，但我認為大約是50億美元。抱歉，是 5 億美元。

(Operator Instructions) Our next question is from Brian, who's from Goldman Sachs.

（操作員說明）我們的下一個問題來自高盛的布萊恩。

I have a couple of questions for...

我有幾個問題想問...

Hello?

你好？

Can you hear me?

你聽得到我嗎？

Yes. Your voice is breaking, right? So...

是的。你的聲音破了，對吧？所以...

Is it better now?

現在好點了嗎？

Yes, yes.

是的是的。

It's better. Please go ahead.

好多了。請繼續。

Yes. This is Grace on for Brian. I have a couple questions. Just wonder how far advanced are you booked for modules? And is there a flexibility in pricing? Or were you not able to raise pricing until like the second half of 2021?

是的。這是布萊恩的葛蕾絲。我有幾個問題。只是想知道您提前預訂了多少模組？定價是否具有彈性？或是直到 2021 年下半年才能提高價格？

Thank you for the question. I think for the module price, 1 side, we have a firm commitment and -- for the contract we signed. But also, we always keep a portion of our capacities to the spot market to adapt ourselves to the volatile market changes.

感謝你的提問。我認為對於模組價格，一方面，我們有堅定的承諾——對於我們簽署的合約。而且，我們始終將部分能力保留在現貨市場上，以適應波動的市場變化。

So for the contract signed part, we are doing our best to respect the contract legal commitment. But we -- since we have a long-term partner -- partnership with many customers for years. So we are still talking to many of them, try to get their, let's say, health and flexibilities to work together to face the current challenges in the market. So that's on progress. Does that answer your question?

所以對於合約簽訂的部分，我們正在盡力尊重合約的法律承諾。但我們——因為我們有一個長期合作夥伴——與許多客戶合作多年。因此，我們仍在與他們中的許多人交談，試圖讓他們的健康和靈活性共同應對當前市場的挑戰。所以這正在取得進展。這是否回答你的問題？

Yes, yes. And how far advanced are you booked for the module for 2021?

是的是的。您提前多久預訂了 2021 年的模組？

I think our order book are more than half booked. But still, we are -- some of the them are with a firm commitment, some of them are with flexibilities with framework contract only. So yes...

我想我們的訂單已經預訂了一半以上。但我們仍然——其中一些有堅定的承諾，其中一些僅具有框架合約的靈活性。所以是的...

Okay. Great. I guess my second question is now that there are more details around the China 14th 5-year plan, you talked about expectations for like 55 to 65 gigawatts. So I just wonder how are you thinking about the demand picture here, like in terms of like what could drive upside or downside?

好的。偉大的。我想我的第二個問題是，現在有關中國第十四個五年計劃有更多細節，您談到了對 55 至 65 吉瓦的預期。所以我只是想知道您如何看待這裡的需求情況，例如什麼可能推動上行或下行？

Sorry. Can you repeat what's the upside and downside for what?

對不起。您能重複一下什麼是優點和缺點嗎？

For China demand, what could drive like the upside or downside?

對於中國需求來說，什麼因素會帶來上行或下行的推動？

Okay. Yes. So I think right now, in short term, we did face some challenges because of the unbalanced growth of the capacities like our pre-market earnings speech. The growth of upper stream capacity is much slower than the expansion of the downstream demand. So there's -- it's caused short-term turbulence and volatile market situations right now. But in long term, we are still a believer for the long-term growth of the market, including China market and other markets as well because we see a very ambitious target announced by China government, and we have accept a very clear signal from our downstream customers about ambitions pipelines in China.

好的。是的。所以我認為現在，短期內，我們確實面臨一些挑戰，因為產能成長不平衡，就像我們在上市前的財報演講一樣。上游產能的成長遠慢於下游需求的擴張。因此，它現在造成了短期動盪和不穩定的市場狀況。但從長遠來看，我們仍然相信市場的長期成長，包括中國市場和其他市場，因為我們看到中國政府宣布了一個非常雄心勃勃的目標，我們已經接受了來自我們的非常明確的訊號。客戶了解中國管道的雄心。

So the current challenge is the short-term market unbalanced supply and demand happened in upper stream. But we expect that it could be resolved in the next, I'd say, midterm -- short-term or midterm because the China -- let's say, China grid parity projects always got a long time to -- after the PPA signed to get grid connections.

所以目前面臨的挑戰是上游市場短期供需失衡。但我想說的是，我們預計這個問題可以在下一個中期得到解決——短期或中期，因為中國——比如說，中國的平價項目總是有很長的時間——在購電協議簽署後獲得電網連接。

So I think, yes, the market will adapt itself based on the market principles. And the China market, together with the global market demand will continue to be very strong and at high-speed growth.

所以我認為，是的，市場會根據市場原則進行自我調整。而中國市場以及全球市場的需求將持續非常強勁並高速成長。

Okay. And if I can sneak in 1 more. I just wonder how should we think about like the OpEx in 2021? Should we think about like as a percentage of sales, like around 12% to 11%? And how should we think about the gross margin in the second half of 2021 versus the first half?

好的。如果我能再偷偷溜進去1個就好了。我只是想知道我們應該如何思考 2021 年的營運支出？我們是否應該將其視為佔銷售額的百分比，例如 12% 到 11% 左右？與上半年相比，我們該如何看待2021年下半年的毛利率？

The gross margin, and -- we are expecting some more competitions among Tier 1 companies. And one of the -- the bottleneck is still the materials. So we are expecting the second half year with more debottleneck for the materials and the cost are expecting to be improved compared to the first half year, and we have more possibilities and with the integration level increase with the bottleneck of the key materials and to improve our gross margin in the second half year.

毛利率，以及－我們預期一級公司之間會出現更多競爭。其中之一——瓶頸仍然是材料。所以我們預計下半年材料的去瓶頸會更多，成本預計會比上半年有所改善，我們有更多的可能性，隨著整合度的提高，關鍵材料的瓶頸和改善我們下半年的毛利率。

Okay. And...

好的。和...

Pardon, the interruption Grace. Are you still there? We lost you for a minute there?

對不起，格蕾絲打擾了。你還在嗎？我們在那裡失去了你一分鐘？

Yes, yes. And the OpEx, how should we think about the OpEx? Is it -- do you expect still around a return to like a normal -- kind of like normal range like 11% to 12% of the sales, net sales?

是的是的。至於營運支出，我們該如何看待營運支出？您預計仍會恢復到正常水平，例如銷售額、淨銷售額的 11% 至 12%？

Yes. It's still in our range, 11% to 12% against the total revenue.

是的。它仍然在我們的範圍內，佔總收入的 11% 到 12%。

Your next question is from Philip who has a follow-up question, who's from ROTH Capital Partners.

您的下一個問題來自 Philip，他還有一個後續問題，他來自 ROTH Capital Partners。

One of the questions I had was around polysilicon. And given where pricing is and the dynamic there of pricing continue to go higher. I was wondering if you could share how much polysilicon you've secured for 2021, possibly in metric tons.

我的問題之一是關於多晶矽的。考慮到定價的情況​​以及定價的動態，定價繼續走高。我想知道您是否可以分享您在 2021 年獲得了多少多晶矽，可能以公噸為單位。

So Philip, I think from the supply side, we have secured enough polysilicon supply. But the challenge is because of this market situation, all those secured polysilicon supply is always up to the market condition. So that's a big pressure or is a big challenge for everyone. But currently, it's extremely -- almost mission impossible to secure a long-term polysilicon pricing. So we secured the volume. I think it's enough. But from the pricing-wise, it's still always up to the market.

所以菲利普，我認為從供應方面來看，我們已經獲得了足夠的多晶矽供應。但挑戰在於，由於這種市場狀況，所有有保障的多晶矽供應始終取決於市場狀況。所以這對每個人來說都是一個很大的壓力或是一個很大的挑戰。但目前，確保多晶矽的長期定價幾乎是不可能的任務。所以我們確保了銷量。我認為這就足夠了。但從定價角度來看，仍取決於市場。

And what's your view, Gener, as to when that pricing can become relief? I think (inaudible) has some capacity coming online at the end of this year. Do you think we have to wait until Q4? Or is there -- and if we get relief before that, what causes that relief?

Gener，您對於定價何時可以緩解有何看法？我認為（聽不清楚）今年年底會有一些容量上線。您認為我們必須等到第四季嗎？或者是否存在——如果我們在此之前得到緩解，是什麼導致了這種緩解？

We think it will relieve step by step. It won't change overnight. But gradually, I think that the pressure will be released. The challenge here right now is the demand side is very, very hot right now. So that's why the upper stream is always holding their expectations that the demand will support the price. So it will -- in short term, we are still expecting a volatile market up and down. But in the long run, like you said, the pressure will release step-by-step and follow the market principles.

我們認為這會逐步緩解。它不會在一夜之間改變。但漸漸地，我想壓力會被釋放。目前的挑戰是需求方現在非常非常熱。所以這就是為什麼上游總是抱持需求支撐價格的預期。因此，短期內，我們仍然預期市場會出現波動。但從長遠來看，就像你說的，壓力會逐步釋放，遵循市場法則。

Okay. And then as it relates to Q2 shipments, we talked about this earlier, Gener, but when I look at Q1 relative to what we forecasted, the Q1 levels are what you guided to were lower. For Q2, should we expect something similar? Meaning is -- if you think back to what you expected to do in Q2, back at the end of last year, is -- do you expect the shipments to be lower in Q2 now versus then? Because the raw material outlook is so challenging. And as a result, your customers and you are pushing out orders. So are you -- do you expect to build less in Q2 than you previously had imagined?

好的。然後，由於與第二季度的出貨量相關，我們之前討論過這一點，Gener，但是當我相對於我們的預測來看第一季度時，第一季度的水平是您指導的較低水平。對於第二季度，我們是否應該期待類似的情況？意思是──如果你回想一下去年年底你對第二季的預期，你預期第二季的出貨量會比當時低嗎？因為原材料前景充滿挑戰。結果，您的客戶和您都在推遲訂單。那麼，您預計第二季的建設量是否會比您之前想像的要少？

I think, Phil, the principle we are holding in the company is to keeping the module capacity more flexible than others, right? So our wafer and the cells are in the full ramp. And for the module side, we are holding more flexibilities up to the -- what we say, right, the margins and the market conditions. That's why the shipment contains all 3 segments we have. So I think we will hold the same principle for Q2 as well. So number-wise, I don't think it's the right time to talk about it and maybe we can talk about it next time.

我想，Phil，我們公司秉持的原則是保持模組產能比其他公司更靈活，對吧？所以我們的晶圓和電池都處於滿載狀態。對於模組方面，我們在利潤率和市場條件方面保持了更大的靈活性。這就是為什麼這批貨物包含我們擁有的全部 3 個部分。所以我認為我們對第二季也將堅持同樣的原則。所以就數字而言，我認為現在不是討論這個問題的好時機，也許我們可以下次再討論。

Okay. All right. I appreciate that. And then in terms of the China listing, Charlie, I know you mentioned some details on that. I was wondering if you could share if there's -- what's the potential for the China listing to be in Q3 or 4 this year? Is it meaningful? Or is it more likely in the early part of '21 -- sorry, '22?

好的。好的。我很感激。關於在中國上市，查理，我知道你提到了一些細節。我想知道您能否分享今年第三季或第四季在中國上市的潛力有多大？有意義嗎？還是更有可能在 21 年初——抱歉，22？

I know you guys have talked about perhaps taking a 2-year process. But I wanted to see if the others are going this year like (inaudible) and then I think Canadiansolar is -- has a chance of getting out there this year. I'm thinking you guys have a chance to get there this year as well, China listing but wanted to get some color from you guys.

我知道你們已經討論過可能需要兩年的時間。但我想看看其他公司今年是否會像（聽不清楚）一樣，然後我認為阿特斯太陽能今年有機會實現這一目標。我想你們今年也有機會在中國上市，但我想從你們那裡得到一些資訊。

Okay. Well, for the China listing, we have a separate team working on this process. It's more complicated compared to the U.S. listing. And the process is still -- is on track, and everything is very smooth. And we're expecting to reach some significant milestone and -- in the next couple of months, and we will keep the market in progress.

好的。嗯，對於在中國上市，我們有一個單獨的團隊負責這個過程。與美國上市相比，它更為複雜。這個過程仍然在正軌上，一切都非常順利。我們預計將在接下來的幾個月內達到一些重要的里程碑，並且我們將保持市場的進步。

And in terms of timetable, how long we will get the China listing down. It's really a lot of process is out of the company's control. And particularly from the -- typically, these are couple rounds of submission and response, different comments from the regulators and the regulators they have different tendencies to control the total volume of China listings.

從時間表來看，我們需要多長時間才能完成中國上市。確實有很多流程是公司無法控制的。特別是——通常情況下，這些是幾輪提交和回應，來自監管機構的不同評論和監管機構控制中國上市總量的不同傾向。

So it's -- from a company perspective, we try to drive the process more -- as quick as possible and more efficiently. But some of the paces is depending from the government regulator's perspective.

因此，從公司的角度來看，我們試圖盡可能快速、更有效率地推動這項流程。但有些步伐取決於政府監管機構的角度。

Our next question is from Johnny Chen, who's from Green Court Capital.

我們的下一個問題是來自Green Court Capital的Johnny Chen。

Can you hear me?

你聽得到我嗎？

Yes.

是的。

And I have 2 questions for you. So firstly, we know that the company has been developing untapped solar cell technology, especially in TOPCon. So would you please elaborate a little more on the capacity plan and the efficiency and the success rate?

我有兩個問題想問你。首先，我們知道該公司一直在開發尚未開發的太陽能電池技術，特別是在 TOPCon 領域。那麼您能否詳細說明產能計畫以及效率和成功率？

And my second question is, is there any possibility that the company develop another N-type form of technology we call HJT.

我的第二個問題是，該公司是否有可能開發另一種 N 型技術，我們稱之為 HJT。

Okay. We build up our R&D capabilities on the N-type a couple years. And I think 2019 is -- starting from 2019, we have built around 800 megawatts TOPCon-based capacities. The efficiencies have been reached to, I think, roughly 24%. And now this year, we are building more capacity on the solar cell capacities. And the capacity is large size-based solar cell capacity as well as we have flexibility to upgrade or to quickly upgrade to the TOPCon-based technology criteria. And in terms of HJT, we still believe it's not impactive at this stage. And we have the R&D and the technology available and continue to watch out the maturities, particularly from the equipment perspective -- the raw material perspective. So we don't have a plan to roll out the large-sized HJT as recent 1 or 2 years.

好的。我們在 N 型上建立了我們的研發能力幾年。我認為 2019 年——從 2019 年開始，我們已經建立了約 800 兆瓦的基於 TOPCon 的產能。我認為效率已達到約 24%。今年，我們正在建造更多的太陽能電池產能。並且產能是基於大尺寸的太陽能電池產能，我們可以靈活升級或快速升級到基於TOPCon的技術標準。而就異質結而言，我們仍然認為現階段它的影響力不大。我們擁有可用的研發和技術，並繼續關註成熟度，特別是從設備角度——原料角度。所以我們最近一兩年沒有推出大型異質結晶體管的計畫。

As a follow up, would you please -- I want to make sure that I heard you right. So what is your capacity expansion plan for TOPCon again this year in 2021?

作為後續行動，我想確保我沒聽錯。那麼今年2021年你們對TOPCon的產能擴張計畫是什麼呢？

Well, 2021, we didn't have a plan to increase our TOPCon capacity. But I just emphasize the new capacity, all the capacity are very easy and convertible, and we have flexibility and available room to upgrade to the TOPCon immediately.

嗯，2021 年，我們沒有計劃增加 TOPCon 產能。但我只是強調新容量，所有容量都非常容易和可轉換，我們有靈活性和可用空間立即升級到 TOPCon。

Yes. So the capacity expansion is based on the P-type technology, right?

是的。那麼產能擴張是基於P型技術的吧？

Yes. You're right, P-type, yes.

是的。你說得對，P型，是的。

Your next question is from (inaudible).

您的下一個問題來自（聽不清楚）。

Can you hear me? Hello?

你聽得到我嗎？你好？

Yes.

是的。

I have a couple questions. One is, you mentioned in your opening remarks that SOEs are willing to accept now lower-than-normal returns with the new solar farm projects. Can you give us a little bit more color on that? Like what kind of returns they're willing to accept now?

我有幾個問題。一是，您在開場白中提到，國營企業願意接受新太陽能發電場專案目前低於正常水準的回報。你能為我們提供更多的資訊嗎？例如他們現在願意接受什麼樣的回報？

And second, I wanted -- my second question, I want to ask a little bit more about your view as to the current supply-demand situation of polysilicon materials. And when do we think we would see a return to normal pricing for polysilicon? And also, at what level currently, if you were to maintain a margin from your end of, let's say, 2020's normal operating margin, what kind of polysilicon price would you need to actually get there?

其次，我想—我的第二個問題，我想多問一下您對目前多晶矽材質供需狀況的看法。我們認為多晶矽何時會恢復正常定價？另外，如果您要維持 2020 年末正常營業利潤率的利潤率，目前的水平是多少，您需要什麼樣的多晶矽價格才能真正達到這一水平？

Thank you. So regarding your question about Chinese SOEs IRR expectations. Actually, I think that there are a lot of Chinese SOE IPP, who has set up a very ambitious renewable targets for this new 5-year plan. And according to what we have heard from the market, I think their IRR expectations has been lowered from previously around 8% to 10% to right now around 6% to 8%. So I think that's a very big, let's say, jump or, let's say, a big decline in order to pump up more renewable projects in renewable sector, which gives a lot of hopes and ambitious targets for the whole industry, especially in China.

謝謝。關於你關於中國國營企業內部報酬率預期的問題。事實上，我認為有很多中國國有企業獨立發電廠為這個新的五年計畫設定了非常雄心勃勃的再生能源目標。根據我們從市場上聽到的消息，我認為他們的 IRR 預期已從之前的 8% 至 10% 左右下調至現在的 6% 至 8% 左右。所以我認為，為了在可再生能源領域推動更多的可再生能源項目，這是一個非常大的跳躍，或者說大幅下降，這給整個行業帶來了很多希望和雄心勃勃的目標，尤其是在中國。

Regarding your second question about supply-demand relationship, especially for polysilicon, I think I -- in the previous question, to Philip, we have provided our views that for the polysilicon is because of the tension of the polysilicon supply is mainly driven by the unbalanced growth or expansions between upstream and downstream because the ramping up phase for the upper stream is much, much lower than downstream. That's mainly the reason. And for the price range or how much when it will goes back to so called, let's say, 2020 level, it just depends on the supply and demand relationship as well.

關於你的第二個問題，特別是多晶矽的供需關係，我想我——在上一個問題中，菲利普，我們已經向菲利普提供了我們的觀點，對於多晶矽來說，因為多晶矽供應緊張主要是由上游和下游之間的不平衡成長或擴張，因為上游的上升階段比下游低得多。主要就是這個原因。至於價格範圍或何時會回到所謂的2020年水平，這也取決於供需關係。

So that's why we see, in short term, our view is that the volatile upper stream -- the volatile market driven by the shortage of the polysilicon or the upper stream material will continue in the short term. But in mid- and long term, we deeply believe the market principles which will automatically balance between the supply demand across the different sector in this industry. And we believe, in long run, renewable is still a very promising industry. Hopefully, that answers your question.

所以，這就是為什麼我們認為，在短期內，我們的觀點是，上游的波動——由多晶矽或上游材料的短缺所驅動的市場波動將在短期內持續。但從中長期來看，我們堅信市場原則會自動平衡該產業不同部門的供需。我們相信，從長遠來看，再生能源仍然是一個非常有前途的行業。希望這能回答你的問題。

Can I have a follow-up?

我可以跟進嗎？

Sure.

當然。

Hello? Hello?

你好？你好？

Yes. Go ahead.

是的。前進。

Okay. I'm just thinking, so like in terms of time, the -- given the fact that there is not that much new supply for polysilicon coming on stream until towards end of the year, do you think we should be able to reach some -- when you say mid- to long term, do you think we should be able to reach a more reasonable polysilicon price and margin levels for us as a result towards the end of the year?

好的。我只是在想，就時間而言，考慮到到今年年底並沒有那麼多新的多晶矽供應，您認為我們應該能夠達到一些- - 當您談到中長期時，您認為我們應該能夠在年底達到更合理的多晶矽價格和利潤水平嗎？

Well, first say about the polysilicon, I think there are capacities starting wrapping up and the new capacity start to release the polysilicon materials to the market. It's just step-by-step, it won't be -- it won't happen overnight. So I think you can look into the main polysilicon manufacturers are ramping up. I think that there's a lot of public information available.

嗯，先說多晶矽，我認為有產能開始結束，新產能開始向市場釋放多晶矽材料。這只是一步一步的，不會——它不會在一夜之間發生。所以我認為你可以看看主要的多晶矽製造商正在加緊生產。我認為有很多公開資訊可供使用。

And regarding your margins question, I think the margins will follow the market principle as well, right? So it will go up and down. For example, recently, the solar glass price has dropped significantly, which helped the module makers more or less, let's say, ease the pressure from the upper stream a little bit. So it happens. It just -- we prefer to look into this industry in the mid- or long term instead of 1 month or 2.

關於你的利潤率問題，我認為利潤率也會遵循市場原則，對嗎？所以它會上升和下降。例如最近太陽能玻璃價格大幅下跌，這或多或少對組件廠商起到了一定的幫助，可以說稍微緩解了來自上游的壓力。所以它發生了。只是——我們更喜歡從中長期角度來研究這個行業，而不是 1 個月或 2 個月。

There are no further questions at this time. Ladies and gentlemen, this concludes our conference call for today. Thank you all for your participation. You may all now disconnect.

目前沒有其他問題。女士們先生們，我們今天的電話會議到此結束。感謝大家的參與。你們現在可以斷開連結了。