晶科能源 (JKS) 2021 Q4 法說會逐字稿

Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Co. Limited Fourth Quarter 2021 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士們，先生們，您好，感謝您參與晶科能源控股有限公司 2021 年第四季度收益電話會議。 （操作員說明）作為提醒，今天的電話會議正在錄音中。

I would now like to turn the meeting over to your host for today, Ms. Stella Wang, JinkoSolar's Investor Relations. Please proceed, Stella.

我現在想將會議轉交給今天的主持人，晶科能源投資者關係部的 Stella Wang 女士。請繼續，斯黛拉。

Thank you, operator. Hi, everyone. Thank you for joining us today for JinkoSolar's Fourth Quarter 2021 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 on Newswire services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website.

謝謝你，接線員。大家好。感謝您今天參加晶科能源 2021 年第四季度收益電話會議。該公司的業績今天早些時候發布，可在公司的投資者關係網站 www.jinkosolar.com 以及 Newswire 服務上查閱。我們還為今天的財報電話會議提供了補充演示文稿，也可以在 IR 網站上找到。

On the call today from JinkoSolar are Mr. Li Xiande, Chairman of the Board of Directors and Chief Executive Officer of JinkoSolar Holding Co. Limited; Mr. Gener Miao, Chief Marketing Officer of JinkoSolar Co., Limited; Mr. Pan Li, Chief Financial Officer of JinkoSolar Holding Co., LTd; and Mr. Charlie Cao, Chief Financial Officer of JinkoSolar Co., Ltd.

晶科能源今天致電晶科能源控股有限公司董事長兼首席執行官李顯德先生；晶科能源首席營銷官苗根先生；晶科能源首席財務官潘力先生；以及晶科能源首席財務官曹查理先生。

Mr. Li will discuss JinkoSolar's business operations and the company highlights, followed by Mr. Miao, who will talk about the sales and marketing. And then Mr. Pan Li, who will go through the financials. They'll also -- they will all be available to answer your questions during the Q&A session that follows.

李總將討論晶科能源的業務運營和公司亮點，然後由繆總談銷售和市場營銷。然後是潘力先生，他將通過財務。他們還將 - 他們都將在隨後的問答環節中回答您的問題。

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 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作出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。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信息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，晶科能源不承擔更新任何前瞻性陳述的義務。

It is 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.

現在很高興向大家介紹晶科能源董事長兼CEO李顯德先生。李先生會說普通話，我會把他的評論翻譯成英文。請繼續，李先生。

(foreign language)

（外語）

[Interpreted] We were very pleased to close a very challenging 2021 with excellent results. We were able to swiftly respond to supply chain volatility and logistic challenges, thanks to our competitive advantages in supply chain management and the comprehensive advantages of our global network.

[解釋] 我們很高興以優異的成績結束了充滿挑戰的 2021 年。得益於我們在供應鏈管理方面的競爭優勢和全球網絡的綜合優勢，我們能夠迅速應對供應鏈波動和物流挑戰。

Revenues and shipments grew significantly in the fourth quarter as a result of the increasing proportion of the in-house large-sized production capacity and large-sized product sales. Our integrated costs declined further, and our profitability further improved. Sequentially, operating profit quadrupled and non-GAAP net profit increased by approximately 13x.

由於自有大尺寸產能和大尺寸產品銷售佔比提升，第四季度營收和出貨量大幅增長。綜合成本進一步下降，盈利能力進一步提升。隨後，營業利潤翻了兩番，非 GAAP 淨利潤增長了約 13 倍。

In the first quarter of 2022, our principal operating subsidiary, Jiangxi Jinko completed its listing on the Shanghai Stock Exchange Science and Technology Innovation Board. The capital risk provided greater momentum for the development of our state-of-the-art technology and business. Our ability to successfully compete in the future rest on our comprehensive strength. We will continue to increase our competitiveness in technology, global marketing network and also the comprehensive measurement scales.

2022年第一季度，我們的主要運營子公司江西晶科完成在上海證券交易所科創板的上市。資本風險為我們最先進的技術和業務的發展提供了更大的動力。我們未來能否成功競爭，取決於我們的綜合實力。我們將繼續提高我們在技術、全球營銷網絡和綜合衡量尺度方面的競爭力。

(foreign language)

（外語）

[Interpreted] Despite a challenging 2021, the demand from end users keep increasing compared with 2020, more flexible business models and a lower price sensitivity are helping the distributed generation business achieved rapid growth. China's installation capacity reached to 55 gigawatts for the full year of 2021, with DG contributing more than half of new installations due to its higher economic returns.

【解讀】儘管2021年充滿挑戰，但與2020年相比，終端用戶需求持續增長，更靈活的商業模式和更低的價格敏感度正在幫助分佈式發電業務實現快速增長。 2021年全年中國的裝機容量達到55吉瓦，由於其較高的經濟效益，分佈式發電貢獻了一半以上的新增裝機。

We hope this trend to remain the driving force for newly added installations in 2022. We are highly optimistic about the development prospects in distributed generation market, and we continue to grow our brand influence in this market. With the strategic needs for energy transformation and energy security in major world economies, we expect that PV industry to continue its strong growth momentum in the coming years. Advanced and high efficient on-time products will support the continued growth of the global PV industry.

我們希望這一趨勢繼續成為 2022 年新增裝機的驅動力。我們高度看好分佈式發電市場的發展前景，並繼續擴大我們在該市場的品牌影響力。鑑於世界主要經濟體對能源轉型和能源安全的戰略需求，我們預計光伏產業在未來幾年將繼續保持強勁增長勢頭。先進高效的準時產品將支撐全球光伏產業的持續增長。

(foreign language)

（外語）

[Interpreted] We continue to lead the industry with our innovative technology and in-depth market knowledge. In our Haining facility, our mass produced N-type cell reached an ultra-high conversion efficiency of up to 24.5% in the fourth quarter last year, an energy yield similar to that of PERC. We have roughly 16 gigawatts of on-time cell capacity operational in the first quarter of 2022 and currently are steadily ramping up our production capacity.

【解讀】我們以創新的技術和深入的市場知識繼續引領行業。在我們的海寧工廠，我們量產的 N 型電池在去年第四季度達到了高達 24.5% 的超高轉換效率，與 PERC 的能量產量相似。我們在 2022 年第一季度擁有大約 16 吉瓦的準時電池產能，目前正在穩步提高我們的產能。

Our integrated cost is expected to further decrease as our integrated production capacity structure consistently improved.

隨著我們的綜合產能結構不斷改善，我們的綜合成本預計將進一步下降。

(foreign language)

（外語）

[Interpreted] In light of the rapid industry transition from P-type to N-type and growing demand for higher efficiency products, we have launched the next generation of N-type ultra-efficiency Tiger Neo modules. These models have received a worldwide claim from our customers for better power generation performance and obtained premium.

【解讀】鑑於行業從P型到N型的快速過渡以及對更高效率產品的需求不斷增長，我們推出了下一代N型超高效Tiger Neo組件。這些型號已收到我們客戶的全球要求，因為它們具有更好的發電性能並獲得了溢價。

In the long run, our stable supply and localized after-sales service network will continue to guarantee the reliability and the consistency of our products and services. These core qualities have become our competitive mode. We will reinforce the leadership position of our N-type modules globally and further enhance our global market share and profitability.

從長遠來看，我們穩定的供應和本地化的售後服務網絡將繼續保證我們產品和服務的可靠性和一致性。這些核心品質已經成為我們的競爭模式。我們將鞏固N型組件在全球的領先地位，進一步提升我們的全球市場份額和盈利能力。

(foreign language)

（外語）

[Interpreted] Our 7 gigawatt mono wafer plant in Vietnam become officially operational in the first quarter this year. This integrated mono wafer cell module manufacturing capacity of roughly 7 gigawatts overseas further consolidates our global supply chain advantage. We are coordinating with our upstream and downstream partners to tap into all other complementary resources and enhance our strategic cooperation. This will help us mitigate raw material shortages and production weak links. At the same time, we are committed to building a cluster of industrial ecosystems to solidify our supply chain.

【解讀】我們在越南的7吉瓦單晶矽片廠今年一季度正式投產。這種在海外約7吉瓦的集成單晶電池組件製造能力進一步鞏固了我們的全球供應鏈優勢。我們正在與我們的上下游合作夥伴進行協調，以利用所有其他互補資源並加強我們的戰略合作。這將有助於我們緩解原材料短缺和生產薄弱環節。同時，我們致力於打造產業生態集群，鞏固供應鏈。

Vertical integration is essential to compete in the global PV market. By continuously consolidating our diversified industrial chain infrastructure, we believe we will continue to strengthen the competitiveness of our core products and bringing great value to our global customers with high-quality, reliable modules and premium services.

垂直整合對於在全球光伏市場競爭至關重要。通過不斷鞏固多元化的產業鏈基礎設施，我們相信我們將繼續增強核心產品的競爭力，並以高品質、可靠的模塊和優質的服務為我們的全球客戶帶來巨大的價值。

(foreign language)

（外語）

[Interpreted] Before I turn it over to Gener, I would like to go over our guidance for the first quarter and full year 2022. We expect total shipments to be in the range of 7.5 to 8 gigawatts for the first quarter of 2022. The annual mono wafer, solar cell and solar module production capacity is expected to reach 50, 40 and 60 gigawatts, respectively, by the end of 2022. We expect our full year 2022 shipments, including wafer sales and modules to be in the range of 35 to 40 gigawatts.

[解釋] 在我把它交給 Gener 之前，我想回顧一下我們對 2022 年第一季度和全年的指導。我們預計 2022 年第一季度的總出貨量將在 7.5 到 8 吉瓦之間。到 2022 年底，單晶矽片、太陽能電池和太陽能組件的年產能預計將分別達到 50、40 和 60 吉瓦。我們預計 2022 年全年出貨量，包括矽片銷售和組件將在 35到 40 吉瓦。

Thank You, Ms. Li. Total shipments in the fourth quarter were 9.7 gigawatts, of which module shipments were 9 gigawatts, a significant increase compared with the third quarter of 2021 and the same period of 2020. ASP outside the North America improved sequentially, thanks to the sales of high-efficiency products in high-end market.

謝謝李女士。第四季度總出貨量為 9.7 吉瓦，其中組件出貨量為 9 吉瓦，與 2021 年第三季度和 2020 年同期相比有顯著增長。北美以外的 ASP 環比提高，這得益於高-高端市場的高效產品。

In terms of regions, module shipments in Asia Pacific and emerging markets increased sequentially and year-over-year. China outpaced all other countries by contributing the largest portion in the fourth quarter from less than 10% in the first half of the year to nearly 34%. As distributed generation gradually becomes the main driving force for newly added installations in China, the sector is expected to increasingly contribute to incremental market volume, encouraged by incentives from the 1+N policy framework that guides the country's climate action and action plan on peak emission and other policies.

從地區來看，亞太和新興市場的組件出貨量環比和同比增長。中國在第四季度的貢獻最大，從上半年的不到 10% 上升到近 34%，超過了所有其他國家。隨著分佈式發電逐漸成為中國新增裝機的主要驅動力，預計該行業將越來越多地為增量市場做出貢獻，這得益於指導國家氣候行動的 1+N 政策框架和峰值排放行動計劃的激勵措施和其他政策。

We are optimistic about China demand will exceed 100 gigawatt in 2022, and we expect the shipments in China's market to further increase in the 2022. In Europe, one of the most developed PV market, clients have accumulated matured awareness for PV and have a higher acceptance of new products such as Tiger Neo modules. By end of 2021, we had shipped our products to more than 30 countries across Europe. Europe become one of our top contributors for total shipments in 2021.

我們看好2022年中國需求將超過100吉瓦，預計2022年中國市場出貨量將進一步增加。在光伏最發達的市場之一歐洲，客戶對光伏的認知已經積累成熟，擁有較高的市場份額。接受Tiger Neo模塊等新產品。到 2021 年底，我們的產品已運往歐洲 30 多個國家。歐洲成為我們 2021 年總出貨量的主要貢獻者之一。

With increasing electricity prices making solar energy more economical and strategic necessarity of energy transformation and energy security, Europe is expected to maintain strong growth momentum. We are confident in maintaining our competitiveness in European market by leveraging our local network and the next-generation N-type ultra-efficiency module, Tiger Neo.

隨著電價上漲使太陽能更具經濟性和能源轉型和能源安全的戰略必要性，預計歐洲將保持強勁的增長勢頭。我們有信心通過利用我們的本地網絡和下一代N型超效率模塊Tiger Neo來保持我們在歐洲市場的競爭力。

We launched the next generation N-type Tiger Neo module in the fourth quarter of 2021 and increased the global promotion and the sales, delivering high energy density, high bifacial factor and the lower linear degradation, Tiger Neo module bring clients better power generation performance and obtain competitive premium. Meanwhile, we are heavily invested in the future of distributed generation sector.

2021年第四季度推出下一代N型Tiger Neo組件，加大全球推廣和銷售力度，提供高能量密度、高雙面因數和更低的線性退化，Tiger Neo組件為客戶帶來更好的發電性能和獲得有競爭力的溢價。同時，我們對分佈式發電領域的未來進行了大量投資。

The proportion of distributed generation in our shipment is expected to reach around 40% this year. We will continue to explore the global market demand for distributed generation based on market trends and customer needs and proactively increased our presence in China United States, Europe, Brazil, Australia and explore other potential markets.

預計今年我們出貨量中分佈式發電的比例將達到40%左右。我們將根據市場趨勢和客戶需求，繼續挖掘全球分佈式發電市場需求，並積極擴大在中國、美國、歐洲、巴西、澳大利亞的佈局，並開拓其他潛在市場。

Countries around the world have adopted various strategies in response to COVID-19 supply chain disruptions and soaring household gas and electricity bills as the energy crisis bite. Under this backdrop the global PV market has been driven by green, low carbon and long-term energy security investment, which will usher in a new period of rapid development.

隨著能源危機的衝擊，世界各國採取了各種策略來應對 COVID-19 供應鏈中斷以及家庭燃氣和電費飆升。在此背景下，全球光伏市場在綠色、低碳和長期能源安全投資的推動下，將迎來新的高速發展時期。

Market demand in 2023 is expected to grow in excess of 20%. We will continue to track market conditions and adjust our business strategy accordingly. We are confident that we will contribute to the global energy transformation with our high-efficiency products and support customers with our sound marketing and global service network.

預計 2023 年的市場需求將增長超過 20%。我們將繼續追踪市場狀況並相應調整我們的業務策略。我們有信心以高效的產品為全球能源轉型做出貢獻，以完善的營銷和全球服務網絡為客戶提供支持。

With that, I will turn it over to Pan.

有了這個，我會把它交給潘。

Thank you, Gener. Our fourth quarter results exceeds the expectations. Total revenues grew significantly quarter-over-quarter. We continued relentlessly to take effective management of integrated production costs and operating expenses. Sequentially, gross profit doubled, operating profit more than quadrupled and non-GAAP net profit increased by 13x.

謝謝你，傑爾。我們的第四季度業績超出預期。總收入環比大幅增長。我們繼續堅持對綜合生產成本和運營費用進行有效管理。隨後，毛利潤翻了一番，營業利潤翻了兩番多，非美國通用會計準則淨利潤增長了 13 倍。

Operating efficiency improved as a result of our efforts to closely align inventory management with market supply and demand dynamics.

由於我們努力使庫存管理與市場供需動態保持一致，運營效率得到了提高。

Let me go into more details now. Total revenue was $2.57 billion, an increase of 91% sequentially and 74% year-over-year. Gross margin was 16.1 percentage compared with 15.1% in the third quarter this year and 16% in the fourth quarter last year. Excluding anti-dumping and countervailing due to its reversal benefit, gross margin was 14.3%.

現在讓我詳細介紹一下。總收入為 25.7 億美元，環比增長 91%，同比增長 74%。毛利率為 16.1%，而今年第三季度為 15.1%，去年第四季度為 16%。剔除反傾銷和反補貼，毛利率為14.3%。

Total operating expenses nearly doubled year-over-year due to a substantial increase in module shipments during the fourth quarter, which increased shipping costs. On one hand, we increased shipments to China to reduce the impact of shipping costs on profitability. And on the other hand, we leveraged our long-term agreement with major shipping companies to obtain more competitive prices compared with the rest of market. In general, the impact from changes in shipping costs on profitability was relatively under control.

由於第四季度模塊出貨量大幅增加，導致運輸成本增加，總運營費用同比幾乎翻了一番。一方面，我們增加了對中國的出貨量，以減少運輸成本對盈利能力的影響。另一方面，我們利用與主要航運公司的長期協議，獲得與其他市場相比更具競爭力的價格。總體而言，運輸成本變化對盈利能力的影響相對可控。

Total operating expenses accounted for 13% of total revenues in the fourth quarter this year, flat sequentially and slightly improved compared with 15% in the fourth quarter last year. Operating margin was represented in the fourth quarter of 2021 compared with 1.3% in the third quarter and 0.8% in the fourth quarter last year. EBITDA was $183 million doubled compared with $89 million in the third quarter of 2021. Non-GAAP net income was $34 million, an increase of 13x sequentially, resulting in diluted earnings per ADS of $0.67.

今年第四季度總運營費用佔總收入的13%，環比持平，與去年第四季度的15%相比略有改善。 2021 年第四季度的營業利潤率為 1.3%，去年第四季度為 0.8%。 EBITDA 為 1.83 億美元，與 2021 年第三季度的 8900 萬美元相比翻了一番。非 GAAP 淨收入為 3400 萬美元，環比增長 13 倍，每股 ADS 攤薄收益為 0.67 美元。

Now I'll brief you on our 2021 full year financial results. Total module shipments were 22.2 gigawatt, up 18% year-over-year. Total revenues were $6.41 billion, up 16.2% year-over-year. Increase in module shipments, higher integrating production volumes, together with cost reduction from our industry-leading integrated cost structure, resulting improved profitability. For the full year of 2021, gross profit was about USD 1 billion, an increase of about 8% year-over-year. Gross margin was 16.3% compared with 17.6% last year.

現在，我將向您介紹我們 2021 年全年的財務業績。組件總出貨量為 22.2 吉瓦，同比增長 18%。總收入為 64.1 億美元，同比增長 16.2%。模塊出貨量增加，集成生產量增加，加上我們行業領先的集成成本結構降低成本，從而提高盈利能力。 2021年全年毛利約10億美元，同比增長約8%。毛利率為 16.3%，而去年為 17.6%。

Operating margin for the full year of 2021 was 2.7% compared to 5.1% in 2020. Operating expenses were 13.6% of the total revenues in 2021, compared to 12.5 percentage last year. EBITDA was $538 million in 2021 compared to $463.5 million last year. Non-GAAP net income was about $88 million in 2021 compared to $147 million last year. This translates into non-GAAP basic and diluted earnings per ADS of $1.84 and $1.7, respectively.

2021 年全年的營業利潤率為 2.7%，而 2020 年為 5.1%。營業費用佔 2021 年總收入的 13.6%，而去年為 12.5%。 2021 年 EBITDA 為 5.38 億美元，而去年為 4.635 億美元。 2021 年非 GAAP 淨收入約為 8800 萬美元，而去年為 1.47 億美元。這轉化為每 ADS 的非 GAAP 基本和攤薄收益分別為 1.84 美元和 1.7 美元。

Moving to the balance sheet. At the end of the fourth quarter, our cash and cash equivalents were $1.4 billion, up from $1.14 billion at the end of the third quarter and $1.24 billion at the end of the fourth quarter last year. Our operating efficiency continues to improve quarter-over-quarter. AR turnover days were 52 days in the fourth quarter compared with 65 days in the third quarter of 2021. Inventory turnover days were reduced to 88 days in the fourth quarter compared with 171 days in the third quarter of 2021.

轉移到資產負債表。第四季度末，我們的現金和現金等價物為 14 億美元，高於第三季度末的 11.4 億美元和去年第四季度末的 12.4 億美元。我們的運營效率環比繼續提高。第四季度的 AR 周轉天數為 52 天，而 2021 年第三季度為 65 天。第四季度庫存周轉天數從 2021 年第三季度的 171 天減少至 88 天。

Total debt was $4 billion at the end of the fourth quarter compared to $2.8 billion at the end of fourth quarter last year. Net debt was $2.56 billion compared to $1.56 billion at the end of the fourth quarter last year. With the listing of Jiangxi Jinko earlier this year, our financial structure is expected to improve with access to competitive financing.

第四季度末總債務為 40 億美元，而去年第四季度末為 28 億美元。淨債務為 25.6 億美元，而去年第四季度末為 15.6 億美元。隨著今年早些時候江西晶科的上市，我們的財務結構有望得到改善，獲得有競爭力的融資。

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

我準備的發言到此結束。我們現在很高興回答您的問題。接線員，請繼續。

(Operator Instructions) Our first question comes from Brian Lee with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Brian Lee。

I guess maybe just to start off on the guidance. I appreciate you giving the views for shipments here in Q1 and for the full year. I think customarily, you've given gross margin guidance, not for the year per se, but at least for the out quarter. Any reason, I might have missed this, but did you provide the gross margin guidance and revenue guidance for Q1? And if not, kind of what's the rationale? And I guess, what are the puts and takes around the outlook for those metrics in Q1?

我想也許只是從指導開始。感謝您就第一季度和全年的出貨量提供意見。我認為按照慣例，您已經給出了毛利率指導，不是針對年度本身，而是至少針對第二季度。出於任何原因，我可能錯過了這一點，但您是否提供了第一季度的毛利率指導和收入指導？如果不是，那是什麼原理？我想，第一季度這些指標的前景是什麼？

Brian, this is Charlie speaking, and you're right. In terms of guidance, we make some small changes compared to the couple of the quarters before, and we plan to only give the guidance for shipments. And in terms of gross margin revenue in range and firstly, we want to be consistent because our subsidiaries in China has been invested in Chinese capital markets. So we want to make a consistency with the regulations in China, which the entities did not provide any gross margin guidance as well as the revenue range.

布賴恩，這是查理說話，你是對的。在指導方面，與前幾個季度相比，我們做了一些小的改動，我們計劃只給出出貨量的指導。就範圍內的毛利率收入而言，首先，我們希望保持一致，因為我們在中國的子公司已投資於中國資本市場。因此，我們希望與中國的法規保持一致，實體沒有提供任何毛利率指導以及收入範圍。

Second one is in terms of gross margin because the supply chain is so volatile, and we don't believe it's -- at this stage, to give the level the gross margin range is still in challenge.

第二個是毛利率，因為供應鏈非常不穩定，我們不相信它——在這個階段，給出毛利率範圍的水平仍然面臨挑戰。

Okay. That's fair enough. Maybe at a big picture level, gross margins came in sort of right above the high end of the range for 4Q. So kudos to you for good execution on that. Are you saying that the supply chain/margin environment is more uncertain in Q1 2022 than what you saw in Q4 '21?

好的。這很公平。也許在大局層面，毛利率略高於第四季度範圍的高端。所以感謝你在這方面的出色執行。您是說 2022 年第一季度的供應鏈/利潤率環境比您在 21 年第四季度看到的更不確定嗎？

The part is still -- the polysilicon part is still well above our expectations. So in terms of gross margin, we expect some pressures from that perspective. But from the long-term perspective, we think probably the price will return to a more rational level, particularly with more supply production volume from poly producers in the second half year.

部分仍然——多晶矽部分仍然遠高於我們的預期。因此，就毛利率而言，我們預計從這個角度來看會有一些壓力。但從長期來看，我們認為價格可能會回到更合理的水平，尤其是下半年多晶矽生產商的供應量增加。

And then for Q4, there was a good amount of nonmodule shipments. What was your kind of gross margin delta roughly between modules and nonmodules? Were they same range or higher on the nonmodules? And if higher, what sort of percentage or basis points difference?

然後在第四季度，非模塊出貨量很大。模塊和非模塊之間的毛利率增量大致是多少？它們在非模塊上的範圍是否相同或更高？如果更高，會有什麼樣的百分比或基點差異？

You mean the Q4 last year or Q1 of this year? Sorry.

你是說去年第四季度還是今年第一季度？對不起。

Asking about Q4 and then I guess the follow-up to that would be what's embedded in your shipment guidance for '22 in Q1 in terms of wafer and nonmodule versus module?

詢問第四季度，然後我想後續行動將是您在第一季度的 '22 出貨指南中嵌入的晶圓和非模塊與模塊的對比？

Okay. So for the 2022, the guidance for Q1 as well as the full year, the majority partly is a module. So you can take the guidance as the module shipments. And regarding the Q4 last year, we did have some 600 megawatts for the wafer and cell shipments. But it's for the low efficiency wafer sales. So the margin is roughly very low. And I think if you -- excluding the wafer and the sales margins, the module margins will be a little bit better than the total amount.

好的。因此，對於 2022 年、第一季度以及全年的指導，大部分部分是一個模塊。因此您可以將指導作為模塊出貨。關於去年第四季度，我們確實有大約 600 兆瓦的晶圓和電池出貨量。但這是為了低效率的晶圓銷售。所以利潤率大致很低。而且我認為，如果您 - 不包括晶圓和銷售利潤率，模塊利潤率將比總量略好一點。

Last 2 housekeeping ones, and I'll get back in the queue. The CapEx guidance for 2022, I might have missed that, but do you have a CapEx range or a number for this year? And then I noticed the tax expense was much higher than usual in Q4. Maybe what was the driver of that? And should we be modeling a similar tax rate in 2022? It seems like it was high 20%, sort of close to 30% in Q4?

最後 2 個管家，我會回到隊列中。 2022 年的資本支出指南，我可能錯過了，但是你有今年的資本支出範圍或數字嗎？然後我注意到第四季度的稅收費用比平時高得多。也許那是什麼驅動力？我們是否應該在 2022 年模擬類似的稅率？似乎是 20% 高，第四季度接近 30%？

Yes. When it comes from...

是的。當它來自...

Yes. Please go ahead.

是的。請繼續。

Yes. For CapEx for last year 2021, it's approximately USD 1.3 billion, and we expect some new capacity in this year. So it might be in around USD 1.8 billion to USD 1.9 billion.

是的。 2021 年的資本支出約為 13 億美元，我們預計今年會有一些新的產能。所以它可能在 18 億美元到 19 億美元之間。

And just lastly, on the tax rate?

最後，關於稅率？

Yes. The tax rate, It's in the range of 15% to 20%.

是的。稅率，在15%到20%的範圍內。

Our next question comes from Philip Shen with ROTH Capital.

我們的下一個問題來自 ROTH Capital 的 Philip Shen。

Just wanted to revisit the margin question for Q1. There are just 3 days left in the quarter. So you guys probably have a sense for where margins are? What do you think could still drive or change? Be it material kind of impact versus your view, given how late in the quarter we are? And what do you think -- can you give us a sense for how do you expect margins in Q1 to be flat versus Q4 or potentially weaker as a result of the higher poly price?

只是想重新審視第一季度的保證金問題。本季度僅剩 3 天。所以你們可能對利潤在哪裡有所了解？你認為什麼仍然可以推動或改變？考慮到我們在本季度的時間有多晚，與您的觀點相比，它是否會產生實質性的影響？你怎麼看——你能告訴我們你如何預計第一季度的利潤率與第四季度持平，或者由於更高的多晶矽價格而可能更弱嗎？

In terms of margin first quarter, I think it's roughly be flat quarter-over-quarter and maybe slightly lower because of the polysilicon plants and as well as the R&D, it's the appreciation numbers, particularly in January and February.

就第一季度的利潤率而言，我認為它與上一季度相比大致持平，並且可能由於多晶矽工廠以及研發的原因而略有下降，這是升值數字，尤其是在 1 月和 2 月。

Okay. And shifting back to some comments, I think Gener made about Europe and the demand there, I was wondering if you could provide a little bit more color on how demand has changed over the past 4 weeks to the European market? Do you also serve the European market from your Southeast Asia facilities? Any kind of color there would be really helpful.

好的。回到一些評論，我認為 Gener 關於歐洲和那裡的需求，我想知道你是否可以提供更多關於過去 4 週歐洲市場需求變化的顏色？您是否還通過您的東南亞工廠為歐洲市場提供服務？那裡的任何顏色都會很有幫助。

Thank you, Philip. This is Gener. For the global demand of '22, we are pretty optimistic about the global demand, especially what happened in the last, say, 3, 4 weeks’ time in Europe. We have observed quite a -- let's say, we observe a stronger-than-expected demand coming from Europe plus the rush in India and also the recent strong push from China side. So adding everything together, we are looking at the global demand at the range of around 240 to 250 gigawatt range.

謝謝你，菲利普。這是傑爾。對於 22 年的全球需求，我們對全球需求非常樂觀，尤其是在過去的 3、4 週歐洲發生的情況。我們已經觀察到——比方說，我們觀察到來自歐洲的需求強於預期，加上印度的熱潮以及中國方面最近的強勁推動。因此，將所有內容加在一起，我們正在關注大約 240 到 250 吉瓦範圍內的全球需求。

And for the -- regarding Europe, we believe European market will beat 30 our gigawatts pretty soon as a whole. And currently, we still supply European market from China manufacturing base. Our non-China factory base is mainly the region for U.S. market right now. I hope that answered your question.

對於 - 關於歐洲，我們相信歐洲市場將很快超過我們的 30 吉瓦。目前，我們仍然從中國製造基地供應歐洲市場。我們的非中國工廠基地目前主要是針對美國市場的地區。我希望這回答了你的問題。

Yes, Gener, that's great. As it relates to the capacity expansion, I think last quarter, you guys were expecting wafer cell module to be 40, 40 and 50 gigawatts, respectively and now you're expecting it to be 50, 40 and 60. And so I wanted to see if you could help us understand what drove that meaning -- what's driving that meaningful increase in capacity?

是的，傑爾，那太好了。由於涉及產能擴張，我認為上個季度，你們預計晶圓電池模塊分別為 40、40 和 50 吉瓦，現在您預計它是 50、40 和 60。所以我想看看你能不能幫助我們理解是什麼推動了這種意義——是什麼推動了產能的有意義的增加？

It seems like it could be related to the stronger demand, but I was wondering if you might be able to share more there. And then -- can you talk about if you expect 2022 to be, call it, 35 to 40 gigawatts, how much of that is booked already for the year? You often have bookings well in advance. And so do you think that's 50% booked or possibly even more?

似乎這可能與更強勁的需求有關，但我想知道你是否可以在那里分享更多。然後 - 您能否談談您是否預計 2022 年將是 35 到 40 吉瓦，今年已經預訂了多少？您經常提前預訂。那麼您認為這是 50% 的預訂量，還是可能更多？

Phil, I think let me briefly talk about this topic. And for the capacity expansion, yes, we have seen a stronger than expected demand. But mainly, we are holding the conference about the long-term momentum of the stronger global demand. And that is very important, the reason why we -- one of the important reasons why we expand our capacities. Meanwhile, we noticed that lots of capacity we will release in the second half, even year-end. That might help our -- to meet the demand not only in '22 but also in '23 and end of '24 even.

菲爾，我想讓我簡單談談這個話題。對於產能擴張，是的，我們看到需求強於預期。但主要是，我們正在召開關於全球需求強勁的長期勢頭的會議。這非常重要，這也是我們擴大能力的重要原因之一。同時，我們注意到我們將在下半年甚至年底釋放大量產能。這可能有助於我們——不僅在 22 年，而且在 23 年和 24 年末也能滿足需求。

And also for the booking side, I think we are looking at our bookings. We are more or less around half bookings based on our plan, and we are trying to book more. And very important to note here is that we are seeing -- we are witnessing a stronger-than-expected demand for the anti product. So that's, I think, the key highlights we try to expand our capacity. The focus will only be the expansion on the anti product.

而且對於預訂方面，我認為我們正在查看我們的預訂。根據我們的計劃，我們或多或少大約有一半的預訂，我們正在努力預訂更多。在這裡需要注意的非常重要的一點是，我們正在目睹對反產品的需求強於預期。我認為，這就是我們試圖擴大產能的關鍵亮點。重點只會是反產品的擴展。

Great. One last question for me. As it relates to the shipments from Vietnam and Southeast Asia into the U.S., have you guys been able to get new volume of shipments into the U.S.? I think you guys have non-China poly going into modules. And if so, when do you expect those shipments to arrive at U.S. shores without being impacted by the Guangxin WRO?

偉大的。我的最後一個問題。至於從越南和東南亞運往美國的貨物，你們有沒有新的貨物運往美國？我認為你們有非中國聚合物進入模塊。如果是這樣，您預計這些貨物甚麼時候會在不受廣信 WRO 影響的情況下到達美國海岸？

For that, I think we have seen some positive feedback in the last couple of weeks, and we have seen some smaller volume, let's call it the samples are being accepted and passed through the CGP inspection. And we are expecting to build a trust worthy tracking system to make sure that all the shipments going to U.S. market will be fully compliant with the CGP and the overall requirements.

為此，我認為我們在過去幾週看到了一些積極的反饋，並且我們看到了一些較小的數量，讓我們稱之為樣品正在接受並通過 CGP 檢查。我們期望建立一個值得信賴的跟踪系統，以確保所有運往美國市場的貨物完全符合 CGP 和總體要求。

So with that we relaunch or we started our non-China production, I think, in the 1 last month or 2. And back to your question, we haven't got any massive, let's say, 100-megawatt level of shipment arrival in U.S. border yet, but we're still holding the positive views about the future shipments to U.S. market. For sure, there are still some concerns on this recent feelings about this anti stuff, but we will keep a close eye on it. But in general, I think we have one of the best solutions in the industry with our vertical integrated non-China production basis.

因此，我們重新啟動或開始我們的非中國生產，我認為，在上個月的 1 或 2。回到你的問題，我們沒有任何大規模的，比如說，100 兆瓦的出貨量美國邊境，但我們仍對未來對美國市場的出貨量持樂觀態度。可以肯定的是，最近對這種反物質的感覺仍然存在一些擔憂，但我們會密切關注它。但總的來說，我認為我們擁有行業中最好的解決方案之一，我們的垂直整合非中國生產基礎。

Our next question comes from Alan Lau with Jefferies.

我們的下一個問題來自 Alan Lau 和 Jefferies。

Thanks a lot for the management for holding the meeting and congratulations on the good results. So my first question is about the new TOPCon product. So on a per what basis, what do you expect the premium of TOPCon products versus PERC products?

非常感謝管理層召開會議並祝賀會議取得的良好成果。所以我的第一個問題是關於新的 TOPCon 產品。那麼，在什麼基礎上，您認為 TOPCon 產品相對於 PERC 產品的溢價是多少？

Thank you for your question. This is Gener speaking. And regarding the premium, it's hard to justify a general numbers, but we are building the business model based on profit sharing business model with our customers. In some cases, we might share -- we might have got a bigger premium. In some cases, we might get a smaller premium based on different markets, different radiation conditions, different system designing or et cetera.

謝謝你的問題。這是 Gener 說的。關於溢價，很難證明一般數字是合理的，但我們正在建立基於與客戶分享利潤的商業模式的商業模式。在某些情況下，我們可能會分享——我們可能會獲得更大的溢價。在某些情況下，我們可能會根據不同的市場、不同的輻射條件、不同的系統設計等獲得較小的溢價。

So it's very slow. But in general, we are seeing the anti premium -- in the current stage, we are seeing anti premiums stay around USD 0.02 to USD 0.03, but we expect that may become up and down a little. So -- but we still are pretty optimistic about this stronger-than-expected demand about the anti product.

所以它非常慢。但總的來說，我們看到了反溢價——在現階段，我們看到反溢價保持在 0.02 美元至 0.03 美元左右，但我們預計這可能會有所上下波動。所以 - 但我們仍然對這種強於預期的反產品需求持樂觀態度。

So it's around $0.02 to $0.03. And I wonder in terms of the margin, would this be better compared to PERC products?

所以大約是 0.02 到 0.03 美元。我想知道就利潤率而言，這與 PERC 產品相比會更好嗎？

Yes. This is Charlie speaking. It is for sure. And the new product anti time, we can get the PERC premium as well as we're in the progress to ramp up our capacities to make the cost -- integrated production cost is competitive with traditional PERC product.

是的。這是查理說話。這是肯定的。而新產品逆時針，我們可以獲得PERC溢價，並且我們正在提高我們的產能以降低成本——綜合生產成本與傳統PERC產品相比具有競爭力。

Next question relates to the European markets because they were ambitious installation targets with the repower EU initiative, et cetera. But at the same time, actually, euros are depreciating. So meaning that probably more module prices is increasing to them.

下一個問題與歐洲市場有關，因為它們是歐盟重啟計劃等雄心勃勃的安裝目標。但與此同時，實際上，歐元正在貶值。這意味著可能更多的模塊價格對他們來說正在增加。

So I wonder if the company sees strong demand from the European market in second quarter versus the first quarter? Do you see quarter-over-quarter growth with probably higher module prices?

所以我想知道該公司是否認為第二季度歐洲市場的需求比第一季度強勁？您是否看到模塊價格可能更高的季度環比增長？

Okay. This is Gener. I'll take this one. The European demand is stronger than expected, especially in the recent 3, 4 weeks' time. We can feel the stronger-than-expected demand mainly coming from the -- not only from the distributed generation market segment, but also coming from the utility side as well.

好的。這是傑爾。我要這個。歐洲需求強於預期，尤其是在最近的 3、4 週內。我們可以感受到強於預期的需求主要來自——不僅來自分佈式發電市場，還來自公用事業方面。

But we have seen quite several, let's say, headwinds around the stronger demand from Europe. One of the challenge just mentioned by you is currency exchange rate. But the other challenges are like the logistics cost. The shipping costs continue to climb up, which is a big impact factors and as well as just the cost of raw material, like polysilicon, like aluminum frames, et cetera.

但是我們已經看到了很多，比如說，圍繞歐洲強勁需求的逆風。您剛才提到的挑戰之一是貨幣匯率。但其他挑戰如物流成本。運輸成本繼續攀升，這是一個很大的影響因素，而不僅僅是原材料的成本，如多晶矽、鋁框架等。

So -- but having said that, because the local electricity cost is higher, so we can expect that even with a slightly higher-than-expected module or solar system cost, the solar system or solar electricity from solar system is one of the most competitive electricity contributors across the whole Europe. I think we are still -- that's the reason why we are holding a very big confidence on the European demand not only for the next coming quarters, but also for the next coming -- even 3 or even 5 years' time. Did that answer your question?

所以——但話雖如此，因為當地的電力成本較高，所以我們可以預期，即使組件或太陽能係統成本略高於預期，太陽能係統或太陽能係統的太陽能發電也是其中之一整個歐洲具有競爭力的電力供應商。我認為我們仍然——這就是為什麼我們不僅對未來幾個季度的歐洲需求充滿信心，而且對未來——甚至是 3 年甚至 5 年的時間都充滿信心。這回答了你的問題嗎？

Yes, that's very comprehensive.

是的，這非常全面。

(Operator Instructions) Our next question comes from Rajiv Chaudhri with Sunsara Capital.

（操作員說明）我們的下一個問題來自 Sunsara Capital 的 Rajiv Chaudhri。

First of all, I want to congratulate you on an amazing fourth quarter as well as on a very successful IPO. Those are big game changers for JinkoSolar going forward. The question I wanted to ask you, I have several questions. The first question is about operating expenses. You had noted that the big change from quarter-to-quarter in the operating expenses, which was almost $100 million was because of shipping expenses. And yet when I look at the line items, the G&A went up from $60 million in Q3 to $122 million in Q4.

首先，我要祝賀你們在第四季度取得了驚人的成績，同時也非常成功地進行了首次公開募股。這些是晶科能源未來的重大變革。我想問你的問題，我有幾個問題。第一個問題是關於運營費用。您已經註意到，營業費用從一個季度到另一個季度的巨大變化（接近 1 億美元）是由於運輸費用。然而，當我查看訂單項時，G&A 從第三季度的 6000 萬美元增加到第四季度的 1.22 億美元。

So is there any shipping expense included in the G&A? Or what is the -- can you just explain why G&A went up so much and what the components are of that and how sustainable that is on a go-forward basis because G&A has been trending at $50 million to $60 million for several quarters now and all of a sudden, it has jumped up 100% in 1 quarter? So that's my first question.

那麼 G&A 中是否包含任何運費？或者是什麼 - 你能解釋一下為什麼 G&A 上漲這麼多，其中的組成部分是什麼，以及在前進的基礎上這是多麼可持續，因為 G&A 現在幾個季度的趨勢是 5000 萬到 6000 萬美元，並且突然間，它在 1 個季度內上漲了 100%？所以這是我的第一個問題。

This is Charlie speaking. And regarding the G&A expenses, it's because the increase in the fourth quarter is particularly some G&A expenses it's relating to the employee year-end bonus as well as we have incurred additional expenses relating to the major company listings. So it's -- some of the parts are not recurring. And looking -- I think it is important looking to 2022, and we plan a significant increase of revenue shipments 35 to 40 gigawatts, which is 25 gigawatts.

這是查理說話。至於 G&A 費用，這是因為第四季度的增加尤其是一些與員工年終獎金有關的 G&A 費用，以及我們已經產生了與主要公司上市有關的額外費用。所以它 - 有些部分不會重複出現。展望 - 我認為展望 2022 年很重要，我們計劃將收入出貨量大幅增加 35 至 40 吉瓦，即 25 吉瓦。

In terms of operating expenses, including everything, we think it's -- we are going to benefit from the leverage of the large scale and operating expenses versus the total revenue will continue to drop quarter-by-quarter.

就包括一切在內的運營費用而言，我們認為——我們將受益於大規模的槓桿作用，運營費用與總收入相比將繼續逐季度下降。

So absent the employee bonuses, would you say that at least in the first few quarters of the year, G&A will drop back to the $60 million range and then the employee bonus will kick in at the end of the year, I assume?

所以如果沒有員工獎金，你會說至少在今年的前幾個季度，G&A 會回落到 6000 萬美元的範圍，然後員工獎金會在年底開始，我假設？

No, it's -- I think the major part is -- of course the majority part is the IPO expenses as well as the legal expenses. We are doing a lot of legal related work, particularly, for example, the dumping in the U.S. and the litigation with the patent. And for the year-end bonus, we did accrue quarter-by-quarter. And because we have better performance, particularly in the fourth quarter and so the employee, the bonus is relatively higher in the fourth quarter because it's passed down better than expected year-end performance.

不，它是——我認為主要部分是——當然大部分是 IPO 費用以及法律費用。我們正在做很多與法律相關的工作，特別是在美國的傾銷和專利訴訟。對於年終獎金，我們確實按季度累積。而且因為我們有更好的表現，特別是在第四季度和員工等方面，第四季度的獎金相對較高，因為它比預期的年終表現更好。

Okay. Charlie, my next question is about the shipping costs. Are you -- at this point, it has become very clear that shipping costs will stay higher for longer than it was originally thought, maybe a year ago. Are you having any success in passing the shipping costs and the risk of changes in shipping costs to the final consumer or you are still having to follow that cost and its volatility by yourselves?

好的。查理，我的下一個問題是關於運費的。你是嗎 - 在這一點上，很明顯，運輸成本將比最初想像的更長，可能是一年前。您是否成功地將運輸成本和運輸成本變化的風險轉嫁給最終消費者，或者您仍然必須自己跟踪該成本及其波動？

Sure. Shipping costs -- first, the shipping costs will continue to maintain a high level throughout 2020 -- 2022. But given the solar energy is very competitive, a lot of markets are highly demanding for the solar modules. So we are seeing flexibilities from the, let's say, the customer acceptance for the higher module price, including the shipping cost. So we -- based on our experience with customers, we are -- I think we are able to pass through the majority part of the shipping costs to our customers.

當然。運輸成本——首先，運輸成本將在整個2020-2022年繼續保持較高水平。但鑑於太陽能的競爭非常激烈，很多市場對太陽能組件的要求很高。所以我們看到了靈活性，比如說，客戶接受更高的模塊價格，包括運輸成本。所以我們 - 根據我們與客戶的經驗，我們是 - 我認為我們能夠將大部分運輸成本轉嫁給我們的客戶。

So Charlie, as you're looking out at -- Q1 is almost over, Q2 and beyond, it's clear that at least for now, polysilicon costs have also been higher and may stay higher for longer, especially in the second quarter. Does that mean that module prices will continue to go up? Would you say that module prices in Q1 were higher than Q4 and Q2, they will be higher than Q1?

所以查理，正如你所看到的 - 第一季度幾乎結束，第二季度及以後，很明顯，至少目前，多晶矽成本也更高，並且可能會持續更長時間，尤其是在第二季度。這是否意味著組件價格將繼續上漲？ Q1的組件價格高於Q4和Q2，會高於Q1嗎？

Last year in Q4, the module price -- market price is reaching to extremely high, almost over RMB 2, in some cases. But it's lower a little bit in the first quarter. But given the high polysilicon price, particularly in the first half year, we are expecting strong demand and relatively shortage on polysilicon. We are expecting the module price will be relatively stable and may have upwards pressure. But in the second half year, given more, I think the polysilicon supply, we are relatively optimistic for the downward trend for the polysilicon.

去年第四季度，組件價格——市場價格達到了極高的水平，在某些情況下幾乎超過了 2 元。但在第一季度略有下降。但鑑於多晶矽價格高企，尤其是上半年，我們預計多晶矽需求強勁且相對短缺。我們預計組件價格將相對穩定，可能有上行壓力。但在下半年，考慮到多晶矽供應量較多，我們對多晶矽的下行趨勢比較樂觀。

But are you giving yourself some pricing flexibility in the way you're writing your long-term contracts? So in case silicon prices stay higher for longer, you are not squeezed by that?

但是，您是否在編寫長期合同時給了自己一些定價靈活性？因此，如果矽價格持續走高，您不會受到擠壓嗎？

I see we have different arrangements for some of our customers. Some of the customers, the module prices they have something kind of linkage for the spot market polysilicons. Some of the contracts are fixed.

我看到我們對一些客戶有不同的安排。一些客戶，他們對多晶矽現貨市場的模塊價格有某種聯繫。有些合同是固定的。

But the ones that are variable, are those going up as a percent of total contracts?

但是那些是可變的，是那些佔總合同的百分比上升的嗎？

Excuse me. Can you speak again?

打擾一下。你能再說話嗎？

The number of contracts where module pricing is variable based on the spot price of polysilicon, is that kind of contract gaining in popularity right now?

模塊定價根據多晶矽現貨價格而變化的合同數量，這種合同現在是否越來越受歡迎？

Just depending on different regions, different customers. So it's hard to say, but some customers like to -- based on their estimations, they are more pessimistic or optimistic for the polysilicon price. So some of our customers, they are more confident on the projections of polysilicon price, they may like to have the variable arrangements with us.

只是根據不同的地區，不同的客戶。所以很難說，但一些客戶喜歡——根據他們的估計，他們對多晶矽價格更加悲觀或樂觀。所以我們的一些客戶，他們對多晶矽價格的預測更有信心，他們可能希望與我們進行可變安排。

Okay. And a final question is on the N-type. You mentioned that you have about 16 gigawatts of N-type operational right now. But you also mentioned that the target for capacity for N-type cells at the end of 2022 is also 16 gigawatts. So I don't understand. You're not increasing the N-type cell capacity at all this year?

好的。最後一個問題是關於 N 型的。你提到你現在有大約 16 吉瓦的 N 型在運行。但你也提到，2022年底N型電池的容量目標也是16吉瓦。所以我不明白。你今年根本不增加N型電池的產能嗎？

The N-type is16 gigawatts. 16 gigawatts is getting online in the first quarter, but it's in the ramping up stage. So by the end of this year, we didn't have a plan so far to increase our game. So that is -- the N-type 16 gigawatts is new for '22, but it's really in first quarter. So that is why when we gave the guidance by the end of the year, the N-type capacity is 16.9 gigawatts.

N型為16吉瓦。第一季度16吉瓦上線，但處於加速階段。所以到今年年底，我們還沒有計劃增加我們的遊戲。也就是說——N 型 16 吉瓦是 22 年的新產品，但實際上是在第一季度。這就是為什麼我們在年底給出指導時，N型容量為16.9吉瓦。

So you're saying right now, it is not 4 gigawatts a quarter?

所以你現在是說，不是每季度 4 吉瓦嗎？

Sorry, let me explain. We get 16 gigawatts N-type TOPCon cell capacity online in the first quarter. The 16 gigawatts is annual capacity and it's in a ramping up stage, and we expect the capacity will reach to full capacity by, I think, by the end of second quarter. So far, we have already got 16 gigawatt capacity for the N-type.

對不起，讓我解釋一下。我們在第一季度上線了 16 吉瓦的 N 型 TOPCon 電池容量。 16 吉瓦是年產能，並且處於上升階段，我們預計到第二季度末產能將達到滿負荷。到目前為止，我們已經獲得了 16 吉瓦的 N 型容量。

So -- but the goal for end of the year is also 16 gigawatts N-type? Out of the 40 gigawatt cell capacity, the target is only 16 gigawatts N-type or did I read that wrong?

那麼——但年底的目標也是 16 吉瓦的 N 型？在 40 吉瓦電池容量中，目標僅為 16 吉瓦 N 型電池，還是我看錯了？

You're right. You're right. Because last year, we had only, I think, 24 gigawatts cell capacity. The additional new 16 gigawatts this year. So get total number 40 gigawatts.

你是對的。你是對的。因為去年，我認為我們只有 24 吉瓦的電池容量。今年新增的 16 吉瓦。所以總功率為 40 吉瓦。

Our next question comes from Tony Sa (sic) [Fei] with Bank of China.

我們的下一個問題來自中國銀行的 Tony Sa (sic) [Fei]。

This is Tony Fei from BOCI. I have 2 questions. First one is also a follow-up on the N-type products. So I understand the new clients are still ramping up, and you may not have the final color on the cost side. But maybe can you speak of the kind of by design. These are new N-type products, they are wafers, are there things to things are compared to the per product so they consume that poly?

我是中銀國際的 Tony Fei。我有 2 個問題。第一個也是N型產品的後續。所以我知道新客戶仍在增加，你可能沒有最終的成本方面的顏色。但也許你能說一下設計的那種。這些是新的 N 型產品，它們是晶圓，有什麼東西可以與每個產品進行比較，以便他們消耗那個多晶矽？

So Tony, can you repeat your question? Regarding the N-type poly, you mean the wafers, N-type wafer?

那麼托尼，你能重複一下你的問題嗎？關於N型多晶矽，你的意思是晶圓，N型晶圓？

The wafer and the cell, their thickness. Are there things that are compared to their product modules, so they consume kind of less polysilicon. So it will help on your production cost side?

晶片和電池，它們的厚度。有沒有與他們的產品模塊相比的東西，所以他們消耗的多晶矽更少。所以這對您的生產成本有幫助嗎？

Yes, you're right. And we have the advantage for the N-type, not only the TOPCon cell, solar cell production as well as we are doing the N-type wafer, N-type modules for the N-type wafer, it's -- have advantage of the wafer right, compared to the P-type. And we think it's going to -- from the -- I think that perspective N-type wafer could get some advantage from the consumption -- less consumption of the polysilicon.

你是對的。而且我們在N型方面有優勢，不僅是TOPCon電池，太陽能電池生產還有我們在做N型矽片，N型模塊對於N型矽片，它--有優勢晶圓對，與P型相比。我們認為它會 - 從 - 我認為 N 型晶圓的角度來看，可以從消耗中獲得一些優勢 - 減少多晶矽的消耗。

Got it. So you just said that you are not going to add new N-type capacity this year. So in the coming quarters, we see the premium of the N-type product is certainly enough. So do you think that you'll continue to invest in the future and early retire your existing P-type cell capacities?

知道了。所以你剛才說你今年不會增加新的N型產能。所以在接下來的幾個季度，我們看到N型產品的溢價肯定是足夠的。那麼您是否認為您會繼續投資於未來並提前淘汰現有的 P 型電池產能？

For the next stage, the capacity expansion plan, we are still evaluating. If we will -- let's say, if we plan to invest additional more, let's say, solar cell capacities, it's 100%. It's a TOPCon N-type cell capacity. But at this stage, we are still in the evaluation stage.

對於下一階段的擴容計劃，我們還在評估中。如果我們願意——比如說，如果我們計劃投資更多，比如說太陽能電池產能，那就是 100%。這是一個TOPCon N型電池容量。但現階段，我們仍處於評估階段。

So my last question is around your product mix. So I guess your DG shipment should be around 30% to 35% of the total market shipment. So in this year, do you think the share of DG products should be higher than last year? And how does it help your margins because some of the new DG sales should be coming from China market. So do you still see higher maybe still shrinking sales expenses on the price?

所以我的最後一個問題是關於你的產品組合。所以我猜你們的危險品出貨量應該佔市場總出貨量的 30% 到 35% 左右。那麼今年，你認為DG產品的份額應該比去年高嗎？以及它如何幫助您的利潤，因為一些新的 DG 銷售應該來自中國市場。那麼，您是否仍然看到更高的價格可能仍在縮減銷售費用？

I think in the prepared remarks by Gener, and we mentioned the DG roughly will increase around 40% versus 30% to 35% and it will -- we will focus not only in the overseas markets as well as China DG markets.

我認為在 Gener 準備好的評論中，我們提到 DG 大約會增加 40% 左右，而不是 30% 到 35%，而且它將——我們不僅會關注海外市場，還會關注中國 DG 市場。

Okay. So do you think the DG -- kind of in the margin side, do you think the DG project has higher than the regular utility scale products?

好的。那麼你認為 DG - 有點在邊際方面，你認為 DG 項目是否具有高於常規公用事業規模的產品？

Yes. It's helpful. DG, the ASP, the customer sensitivities for the price is more, is better. So we expect to get more higher margin and from the DG perspective.

是的。這很有幫助。 DG，ASP，客戶對價格的敏感度越高越好。因此，從 DG 的角度來看，我們希望獲得更高的利潤率。

Thank you. This is the end of today's call. Thank you all for participating. You may now disconnect your lines.

謝謝你。今天的電話到此結束。謝謝大家的參與。您現在可以斷開線路。