Emeren Group Ltd (SOL) 2010 Q1 法說會逐字稿

Hello, ladies and gentlemen, and thank you for standing by for ReneSola Limited's first quarter 2010 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. As a reminder, today's conference is being recorded.

I would now like to turn the meeting over to your host for today's call, Mr. Derek Mitchell, ReneSola's Investor Relations consultant from Ogilvy Financial. Please proceed, Derek.

Hello, everyone, and welcome to ReneSola's first quarter 2010 earnings conference call. ReneSola's first quarter 2010 earnings results were released earlier today and are available on the Company's website, as well as on newswire services. You can follow along with today's call by downloading a short presentation, which can also be found on the Company's website at www.renesola.com.

On the call today from ReneSola are Mr. Xianshou Li, Chief Executive Officer; Miss Julia Xu, Chief Financial Officer; and Mr. Charles Bai, Chief Strategy Officer. Mr. Li will be discussing ReneSola's business highlights and strategy, and Miss Xu will go through the financials and guidance, and they will all be available to answer your questions during the Q&A session that follows.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today.

Further information regarding these and other risks and uncertainties is included in the Company's annual report on form 20-F and other documents filed with the US Securities and Exchange Commission. ReneSola does not assume any obligation to update any forward-looking statements, except as required under applicable law.

Before I turn the call over to Mr. Li, please be reminded that unless otherwise noted, all figures mentioned during this call are in US dollars.

It is now my pleasure to introduce Mr. Xianshou Li, CEO of ReneSola. Mr. Li will give his remarks in Mandarin, and Miss Xu will translate into English. Please go ahead, Mr. Li.

(Interpreted). Thank you to everyone for participating in today's first quarter results call. If you have downloaded our presentation, please turn to page four for a brief overview of our highlights for the quarter.

The first quarter of 2010 was a strong period for ReneSola in which the Company returned to profitability. As we mentioned previously, our goal was to become a leading low-cost solar product provider, with a primary focus in wafer manufacturing and a complementary OEM module production service.

We excelled in executing the strategy during this quarter by continuing to leverage our technological expertise to lower costs and improve efficiency in several key areas, including our in-house polysilicon plant, leading to improved margins across the board.

With a steadfast focus on wafer manufacturing, supported by integrated solar module OEM services, we capitalized on the high demand for solar products experienced in the first half of 2010, increasing our capacity and shipment volumes to record levels.

Before getting into our results, I should note that effective January 1, 2010, we adjusted our efficiency calculations to reflect our current solar cell conversion efficiency rate.

As of December 31, 2009, ReneSola had achieved average conversion efficiency rates for solar cells utilizing in-house mono and multi wafers of 17.4% and 16% respectively. This compares to our previous mono and multi conversion efficiency rates of 16% and 15% respectively.

Our constant focus on technological advancement has generated a 5% to 8% increase in the average amount of power per watt generated by each wafer, based on our new calculations. To make the quarter-over-quarter comparisons more relevant, all numbers mentioned today for the fourth quarter of 2009 will be represented under the new efficiency calculation. You can find an explanation of our changing efficiency calculation on slide number 14 in our presentation.

Please turn to page six for an overview of our wafer production. Total solar product shipments in the first quarter of 2010 were a record 242.4 megawatts, of which 229.9 megawatts represent wafer shipments, an increase of 13.7% from 199.6 megawatts of wafer shipments in fourth quarter of 2009, due to increasingly strong wafer demand experienced at the start of 2010.

Without adding additional capacity, capital equipment to our wafer facilities, we have increased our wafer manufacturing capacity from 825 megawatts to 950 megawatts during the first quarter of 2010 due to improvements in slicing and conversion efficiency.

By Q2 2010, we expect to increase our wafer capacity to 1,210 megawatts, and total product shipments to between 1,000 megawatts and 1,100 megawatts, further increasing our wafer market share globally.

In the first quarter of 2010, we continued to focus on our strategy to drive down production costs, with average wafer processing costs in the quarter of $0.28 per watt, down over 9.7% from $0.31 per watt in fourth quarter of 2009. We will continue to diligently work to further reduce our wafer processing costs. We hope to reduce our overall wafer costs to approximately $0.53 per watt by the end of 2010.

After several periods of wafer ASP decline, strong wafer demand has raised our wafer ASP to $0.70 per watt -- $0.77 per watt, compared to $0.75 per watt in the fourth quarter of 2009 based on our adjusted efficiency calculations.

As we enter into second quarter, we continue to witness strong wafer demand, resulting in continued wafer ASP increases. We expect second quarter wafer ASP to be between $0.80 to $0.82 per watt.

Looking ahead into the second half of 2010, wafer demand should remain strong in Q3, but we do expect Q4 prices to decrease by 5% to 10% from the current levels, based on solar industry's typical seasonality.

Phase 1 of our 3,000 metric tonne polysilicon manufacturing facility achieved the closed loop manufacturing with the activation of TCS synthesis and hydrogenation in March 2010, which should help lower our total polysilicon costs to our goal of $40 to $45 per kilogram by the end of 2010.

In the first quarter of 2010, our polysilicon costs were slightly higher than expected, due to a temporary suspension of production in February for equipment tweaking. Production is back on line, and the adjustments have resulted in increased efficiency.

Phase 2 trial production commenced in February 2010, and is expected to be fully integrated with Phase 1 by third quarter of 2010. We do expect the plant to produce 1,500 metric tonnes to 1,700 metric tonnes of polysilicon by the end of 2010.

In the first quarter of 2010, the plant achieved a total production output of approximately 119 metric tonnes.

Our integrated cell and module OEM Services have enhanced our competitive platform, allowing us to capitalize our strong wafer customer relationships, and the rising demand in solar products. As of March 31, 2010, we had solar cell and module manufacturing capabilities of 120 megawatts and 135 megawatts respectively.

We continue to expand our capacity to meet the demands of our OEM contracts, targeting a cell capacity of 240 megawatts and a module capacity of 375 megawatts by second quarter this year.

We have signed three OEM agreements this year thus far, including two 2010 contracts totaling 100 megawatts, and a 600 megawatt contract for delivery from 2010 to '12. In 2010, we plan to ship 200 to 250 megawatts of solar modules.

Thank you, Mr. Li. Please turn to page 13 through 17 of our presentation for a snapshot of our financial results.

Net revenues for the first quarter of 2010 exceeded revenue guidance, and were $206.6 million, an increase of 14.8% sequentially. The increase in net revenues from Q4 '09 was driven by a higher wafer ASP and shipment volume increases.

Total solar product shipments in Q1 2010 also exceeded our guidance, with a record 242.4 megawatts, an increase of 12.6% sequentially. The record increase is a result of an improvement in overall market demand for our Company's products, particularly in solar wafers.

Operating income for the first quarter of 2010 was $21.2 million. This compares to operating loss of $20.5 million in the fourth quarter of 2009. Total operating expenses in the first quarter of 2010 were $14.1 million, down 26.9% from $19.4 million in the fourth quarter of 2009. The sequential decrease in operating expenses was primarily attributable to a one-time provision of $8.6 million against doubtful receivables, from Linzhou Zhongsheng in fourth quarter '09.

First quarter operating margin was positive 10.3% compared to operating margin of negative 11.4% in the fourth quarter of '09.

Foreign exchange losses were $0.9 million, mostly due to euro/US exchange rate movements. Our euro-denominated sales in Q1 were approximately 13% of our overall revenues, while US [fee] denominated sales were 36%, with the remaining sales in RMB. We estimate euro sales to represent around 15% of our overall revenues in 2010.

We also recognized a tax expense of $3.6 million for the first quarter compared with a tax benefit of $5.4 million for the fourth quarter of 2009. Tax benefits were recognized in fourth quarter largely due to tax losses. For the full year of 2010, we expect our tax rate to be close to 24%.

Net income attributable to holders of ordinary shares for the first quarter of 2010 was $11.8 million compared to net loss of $17 million for the fourth quarter of 2009. This translates into earnings of $0.07 per ordinary share, and $0.14 per ADS for the first quarter of '10.

As of March 31, 2010, the Company's bank debt comprised of approximately $406.6 million in short term borrowings, increased from $358.6 million in the fourth quarter of last year. This increase is primarily due to increases in trade finances, as our sales rose in full -- in first Q 2010 compared with fourth quarter last year.

We have reduced our long term borrowings from $189.3 million in the fourth quarter last year to approximately $171.4 million in Q1 of 2010. During the quarter, we repurchased our remaining $32.5 million in convertible bonds outstanding and, as of March 31, 2010, we had no bonds outstanding, and a cash balance of approximately $98 million.

As of today, we have approximately [$718] million in committed credit lines, of which approximately $500 million is drawn.

Our capital expenditure cash spending for the first quarter was $24.2 million. This was mainly due to investments made in capacity expansions at our Jiashan wafer facility, JC Solar cell and module facility, and tail payments for Sichuan polysilicon plant. Total CapEx for the year is expected to be approximately $100 million.

Now I'd like to turn to our guidance. Please turn to page 19 of our presentation for a look at our guidance.

We have witnessed a recovery in demand for solar products at the beginning of 2010. With a continuous rise in overall wafer demand, this has increased first half 2010 wafer ASP. We expect demand and high wafer supply to continue into second half of the year, although we do expect ASP declines in fourth quarter, a historically low seasonal quarter for the solar industry.

The recent boom in market demand, particularly for solar wafers, give us confidence in stable ASPs and increased shipments for the second quarter of 2010 in which we expect revenues to be in the range of $230 million to $250 million, and shipments to be in the range of 240 megawatts to 260 megawatts.

For full-year 2010, we should see total revenues in the range of $900 million to $950 million, with gross profit margins of 21% to 23%; and total shipments of 1 gigawatt to 1.1 gigawatt, as we expect stable ASPs in Q3 versus Q2, and 5% to 10% decline in Q4 compared to the current level.

In terms of capacity, we aim to reach 1.2 gigawatts of wafer, 375 megawatts in module, and 240 megawatts in cells by second quarter of 2010, with an estimated CapEx of $100 million.

At this time, we are happy to take your questions. Operator?

(Operator Instructions). Your first question comes from the line of Sanjay Shrestha with Lazard. Please proceed.

Thank you. Good evening, guys. First of all, congratulations on a great quarter; a couple of quick questions. Number one, what gives you guys a level of confidence that the pricing will hold stable from Q2 to Q3, despite a lot of concern out there about the one-time 16% subsidy cut in Germany? Is it because you see other markets picking up in Europe? Or can you talk about that a little bit?

(Interpreted). Our confidence came from our customers. We are practically sold out for the year. And as we speak today, we have more than 10 customers lined up to take up additional capacity, if we have any additional capacity for fixed pricing for the remaining of the year.

Okay, got it. So is there any potential concern because these things keep coming up again and again? I see what you guys are saying, but is there any potential concern that maybe there is a bit of double ordering going on in the market right now, given the massive demand pull from Germany?

And two, given how strong you guys are doing on the wafer side of your business with potential to be one of the lowest cost producers, what is your current thinking as to any further expansion, or maybe lack thereof on your cell and the module side, and just focus more on your wafer side of the business?

(Interpreted). As where we can see thus far, the wafer demand this year has been extremely strong. Although there is a potential cut for the German feeding tariff, but we do believe this has been largely digested by the market already. And most of the orders we get are truly firm orders and the demand that we see has definitely outpaced our capacity.

In terms of our wafer strategy, we will continue to focus on reducing cost, increasing efficiencies. We will also place quite a few -- a bit of effort in terms of R&D development, and we really aim to become one of the best wafer producers in the world.

Okay, that's great. Once again, congratulations, guys.

Your next question comes from the line of Lu Yeung with Merrill Lynch. Please proceed.

Hi. Congratulations on the results. I have a question on your guidance. For your annual guidance, you seem to suggest that the margin will be sustainable through the rest of the year, possibly to increase in the second half. But based on your assumption that pricing will decline slightly in the fourth quarter, how should we understand your cost side on the -- your assumption on the polysilicon cost? And also, how is that related to your internal polysilicon ramp?

(Interpreted). Yes, you're right; we do expect rising margins in the second half versus the first half. And you're also right; in the declining -- only in fourth quarter, we do expect some ASP decline, but we expect our processing cost -- our overall wafer production cost, the rate of this reduction to be faster than the ASP reduction.

And in terms of the polysilicon plant, after almost a year of trial production, we have gained a lot of valuable experiences, and we think that we are very well better prepared to lower our cost to about $40 to $45 per kilogram by the end of this year.

Do you have a plan that silicon cost guidance in -- for second quarter? And also, what was it in the first quarter?

(Interpreted). The average polysilicon cost for first quarter of 2010 was around $60 per kilogram, and we expect average cost to be reduced to about $54 per kilogram in the second quarter.

And the reduction is mainly coming from internal production, or coming from continued digestion in inventories?

(Interpreted). Well, as you know, we use FIFO accounting method. Our inventory pricing is very close to the market price already, and that's one of the major reasons why in the second quarter you will see $54 per kilogram cost.

I see. Last question I have is, what kind of cell conversion and module conversion cost are you looking at by the end of the year?

(Interpreted). At the moment, our sales for mono is already greater than 17.5%. For multi, it's greater than 16%.

I see. What will be the cost target that you're looking at for cell and modules; the conversion cost, processing cost?

(Interpreted). Around $0.20 for cell and $0.35 for module.

I see. All right, thank you.

Your next question comes from the line of Vishal Shah with Barclays Capital. Please proceed.

Yes, thanks for taking my question. So first of all, I want to just clarify your comments. You said you're going to get to $0.53 per watt wafer cost by the end of the year, so that would imply about 30% gross margins as you exit 2010 on the wafer business, given your expectation for pricing. First of all, can you just clarify that's correct?

(Interpreted). Yes, it's around 25% to 30%.

Okay, and can you maybe clarify on your assumptions about how you get to $0.53; what kind of processing costs you're talking about for the wafer side?

(Interpreted). Around $0.24 for the processing cost and $0.29 for the poly cost.

So $0.28 going to $0.24?

Correct.

And can you talk about what drives the cost reduction?

(Interpreted). A combination of a few reasons, initiatives. Number one is, we'll continue to reduce the electricity cost by increasing the -- we'll continue to reduce the electricity cost by over 10%. And for the dependence on slurry, we aim to reduce by 20% of slurry usage. And similarly, for steel wire usage, we plan to reduce 10% of that. And we'll also continue to improve the operational efficiency on the production side.

Okay, that's very helpful. Thank you. I also wanted to clarify, in your guidance for the full year wafer shipment, or total shipments, what are your assumptions for wafer shipments in the second half? If I look at your current run rate, it appears to me that wafer shipments could decline sequentially in the third and the fourth quarter. Is that correct?

(Interpreted). Second half, close to 600 megawatts.

Second half wafer shipments will be 600 megawatts? So --

Hang on just one second. I'll tell you then.

(Interpreted). We plan to produce around 600 megawatts of wafer, of which 140 megawatts will be internally digested. So the third party sales of wafers is around 460 megawatts of wafer.

Okay, which would be roughly flat from first half level.

For the first half slightly more.

One last question. Just -- I want to clarify your margin numbers and some of the cost numbers that you gave in the first quarter. When you add all of the numbers that you just provided, I still don't get the gross margin number that you commented. So what was your module processing cost in the first quarter? Was it close to $0.80/$0.85, for wafer to module cost?

(Interpreted). Around $0.83 the wafer processing, plus cell processing, plus module processing costs.

Thank you.

Your next question comes from the line of Sunil Gupta with Morgan Stanley. Please proceed.

Thank you for taking my question. Good afternoon, Mr. Li, and good evening, rather, Julia. I have two questions on your inventory. Could you help us understand of the outstanding inventory that you had, what's the break up between raw materials as in polysilicon work in progress and finished goods?

Sunil, in terms of the first quarter, the break is around fairly even between the WIP and raw material; around 42% to 43% for each; and the remaining is finished goods.

Okay. And then in terms of your polysilicon cost, you mentioned that in Q1 the average polysilicon cost was $60 a kilogram. But since you have your FIFO accounting for polysilicon, I was wondering why is it so high? Because in Q4, were you not buying polysilicon closer to $50, which is what I think was mentioned on the call?

(Interpreted). That is because we also sold some of the products which were made in fourth quarter which had to use the previous quarter's polysilicon costs.

Okay; all right. And then in terms of your ASP guidance, you've given very clear guidance for wafers. How about your module business? What kind of ASP do you expect in Q2/Q3/Q4?

(Interpreted). From the order visibilities that we are seeing, we expect around $1.70 in Q2 and Q3, and $1.60 in Q4.

Okay. And when you talk about $1.70 in Q3, which is flat over Q2, is this based on customer focus, or are these firm orders? So what I'm trying to get my head around is, how much of this is already signed and contracted for Q3, especially for ASP?

I am not sure the exact percentage, but the price -- the ASP indication comes from fairly firm orders, not indicative pricing.

Okay. And would you be able to talk about -- of your module shipments which are growing steadily, which end markets are you going to be shipping in second half? If you have a rough breakdown, that would be very useful.

(Interpreted). So only around 15% of our overall sales in denominated in Europe, so those sales are predominantly are focused for the Euro land. And also to remember that our module business is an OEM based business, so we have three large customers and they sell to various end markets.

Okay. All right, great. Thank you very much and congratulations on very good execution.

Thank you.

Your next question comes from the line of Sam Dubinsky with Wells Fargo. Please proceed.

Hey, guys. Congrats on the good quarter. Just a couple of quick questions. Why was R&D expense so high this quarter? And how should we model total OpEx going forward?

(Interpreted). The R&D; we will in general keep about 2% to 3% of R&D as a percentage of sales revenues, because we do expect to continue to focus on the technology development side.

And secondly, on the OpEx, it should be somewhere between 6% to 7% of our overall sales, and it's fairly steady.

Okay, and then can you discuss the lending environment in China? Is it still easy to obtain financing? Or do you believe you'll have to tap the US equity market at some point in 2010?

(Interpreted). Although there is a tightening of credit from the Chinese banks recently, but particularly those tightening of credits are primarily focused in the property sector. So there is actually quite a bit of money for the local banks to lend, so we do not expect very tight lending for our Company.

And secondly, is the Company is going to generate very strong operating cash flows? We do expect operating cash flows to be in the range of about $250 million to $300 million for 2010.

Okay, and just for clarification, did you mention your polysilicon costs, what you produced internal poly for including depreciation in Q1?

The first quarter polysilicon pricing, the cost is slightly than what we had expected. It's slightly over $60 per kilogram, and that is due to we didn't really produce any for the month of February. So the overall cost is actually relatively higher than what we expected.

And for the depreciation, for the full Company, first quarter is about $10 million, of which it's about $1.5 million attributable to our polysilicon plant.

Okay. And then could you give us an update of the domestic China market? How many megawatts do you expect to be installed in 2010? And will you be selling either modules or wafers directly into this market? And how should we think about ASPs in this market?

Then I have one last question.

(Interpreted). We do sell -- some of our customers, our cell to module customers are Chinese customers. However, we don't believe those are intended for Chinese market.

Okay, and my last question is, have any of your customers recently asked for a price break just given the decline in the euro recently? Do you see a little bit more pressure from your customers to try to lower pricing, or are they happy where wafer pricing is today?

(Interpreted). There's a very tight supply for wafer products. As of today, I think there's actually an upside on the wafer pricing rather than customers asking for price breaks.

Okay, great. Once again, great quarter. Thanks, guys.

Your next question comes from the line of [Bernard Sama] with Daiwa Securities. Please proceed.

Hi, good afternoon. Good afternoon. Thanks for taking my questions.

My first question is on your wafer output. How many (technical difficulty) was in mono versus multi on the first quarter?

(Interpreted). For the first quarter it's about 80 megawatts or so in mono and around 146 megawatts or so in multi.

And going forward towards second/third quarter, will -- how we should look at your mono versus multi mix? And I have also observed you have revised up the mono wafer conversion efficiency quite significantly compared to multi. Does it mean that mono wafer do have the higher margin now?

(Interpreted). We are actually at 100% utilization, so best way to gauge mono/multi mix is from our capacity. We have about three - by Q2, we'll have about [380 megawatts] in mono and [830 megawatts] in multi. And in terms of ASPs, mono commands a slightly higher ASP than multi wafers.

How would the margins [split]? Is mono and multi quite similar, or slightly higher?

(Interpreted). Fairly similar because the multi processing cost is also cheaper.

Okay, good enough. And could you also give a little bit of [lifting] on the polysilicon side, update on the polysilicon side; when you think that your production costs --? You already said it will be $40 to $45, but what would be the Q3 and Q4 production costs you're targeting at?

(Interpreted). We target around $50 to $55 in Q2, less than $50 in Q3, and $40 to $45 in Q4.

$40 to $45 Q4. And what will be your electricity consumption per kilogram on the polysilicon side?

About 5.7 grams.

No, no; polysilicon, like how many kilowatt hours you will be consuming for each kilogram of output?

The only guidance we have historically given is the efficiency conversion -- is the conversion cost, which is how much polysilicon is required to produce one watt of wafer.

No, I'm talking about the polysilicon plant. When you are going to produce one metric tonne of polysilicon, you need to -- kilowatt hours you have to consume, right? Normally, like 130 kilowatt hours to 50 kilowatt hours per kilogram [people] consumes. I'm not sure where you are now.

(Interpreted). We use a closed loop processing, and for each kilogram of polysilicon, it will be about -- by the end of this year, it will be less than 200 kilowatt hour.

200 kilowatt hour; okay, good. Thank you very much. Good quarter, and good luck ahead.

Thank you.

Your next question comes from the line of Catharina Saponar with Nomura. Please proceed.

Thanks, my questions have been answered.

Your next question comes from the line of Mark Davis with Panmure Gordon. Please proceed.

Hi, everyone; couple of questions just first off, just talking about the changes in your wafer efficiency calculation. Just of interest really, I know it doesn't affect your revenues, it's affected your guidance to some extent. But do you have --? I'm assuming you have customer endorsement of this, so could you just talk me through how many customers endorsed the fact that your efficiency's gone up, how long they test those wafers, or their modules, and just talk me a little bit how you have been able to increase that guidance.

I think one thing we have to clarify, when we sell wafers to our customers, we sell wafers actually typically per pieces, and we have achieved those efficiencies for quite some time. So it is not a new efficiency that our new customers need to get accustomed to. We are merely adjusting for a better representation of our numbers.

Okay. Now I appreciate you said on a per piece basis. I'm just wondering whether we should expect this to occur on an annual basis, just purely out of interest really.

Sure, sure.

(Interpreted). Obviously, we don't want to create lots of market confusion. We won't do it very frequently from -- but periodical -- from a -- periodically, if there is a large variance between efficiencies and what we actually achieve, then we will adjust it.

Okay. And then the second question is, you've got a third OEM module customer now. I'm guessing it's 48 megawatts worth for this year. Can you give us any more detail about who the customer is? Is it -- are they Chinese-based?

(Interpreted). Yes, we'd rather remain anonymous because -- at the customer's request.

Okay. And can you give us any guidance as to the likelihood of you winning any further OEM module customers this year?

(Interpreted). The -- we actually have more customers knocking on our doors than actually our capacity can handle, so I think we'll take a step at a time and evaluate as we go along.

Okay, I appreciate that. I suppose what I'm trying to get to is your trading conditions at the moment are much better than they were, let's say, at the start of the year, six months ago, so your vertical integration approach is fairly measured. I'm just wondering whether this is prompting you to -- are you likely to scale up your module capacity even further in the next three to six months as a consequence of this on the back of the demand you're getting from potential module customers? Just trying to see if there's going to be any change in that module capacity in the next three to six months over and above what you've already guided towards.

Sure.

(Interpreted). We will continuously to evaluate and monitor the market situation, but at the moment, we do not have any plans to increase beyond what we have guided the market.

Okay, thanks very much.

Your next question comes from the line of Adam Wiseman with Luminous. Please proceed.

Hi, guys. Thanks for taking my call. Just wanted to follow up on the full-year guidance that you gave out. If I do the math around gross margin and tax rate, and just assume an OpEx and interest expense run rate based on Q1, I get to something around $1 of earnings for the year. Is there something that I'm missing there, or is that the kind of range you guys are expecting?

(Interpreted). This is obviously your back of the envelope calculation, and we can actually be even more optimistic than that.

Okay, great. Congrats on the quarter, guys.

We're now approaching the end of the conference call. I will now turn the call over to ReneSola's Chief Financial Officer, Miss Julia Xu, for her closing remarks.

In conclusion, we are excited to have returned to profitability in the first quarter of 2010. We expect to further increase our net income in the second quarter and the full-year 2010 through efficiency improvements and cost reductions across the board. We will continue our focus on becoming a global leader in high quality, cost competitive solar wafer production, supported by solar module OEM services and in-house polysilicon, in order to bring long term value to the Company and its shareholders.

Again, thank you for joining us today. If you have any further questions, please do not hesitate to contact us.

Thank you.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.