Emeren Group Ltd (SOL) 2016 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for ReneSola's Fourth Quarter and Full Year 2016 Earnings Conference Call. (Operator Instructions) Please note that we're recording today's conference call.

女士們、先生們，大家好。感謝您出席昱輝陽光2016 年第四季和全年財報電話會議。（操作員說明）請注意，我們正在錄製今天的電話會議。

I will now turn over the call to Mr. Gary Dvorchak, Managing Director of The Blueshirt Group Asia. Please go ahead, Mr. Dvorchak.

我現在將電話轉給 The Blueshirt Group 亞洲區董事總經理 Gary Dvorchak 先生。請繼續，Dvorchak 先生。

Thanks. Hello, everyone. Thank you for joining us on ReneSola's conference call to discuss fourth quarter and full year 2016 results. We released the results a little bit earlier today, and they're available on the company's website as well as from newswire services. You can also follow along with today's call by downloading the short presentation available on the company's website at www.renesola.com.

謝謝。大家好。感謝您參加昱輝陽光電話會議，討論 2016 年第四季和全年業績。我們今天早些時候發布了結果，可以在公司網站和新聞專線服務上獲得這些結果。您也可以透過下載公司網站 www.renesola.com 上的簡短簡報來關註今天的電話會議。

On the call today with me are Mr. Xianshou Li, Chief Executive Officer; Ms. Maggie Ma, Chief Financial Officer; and Ms. Rebecca Shen, Director of Investor Relations. Rebecca will read Mr. Li's prepared remarks regarding ReneSola's operational highlights and strategy, and Maggie will then review our fourth quarter and full year 2016 financial results in detail.

今天與我一起通話的是執行長李賢壽先生；馬琪女士，財務長；以及投資者關係總監Rebecca Shen女士。Rebecca 將閱讀李先生準備好的有關昱輝陽光運營亮點和戰略的講話，然後 Maggie 將詳細回顧我們的 2016 年第四季度和全年財務業績。

Before we continue on Slide 2, 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, and as such, the company's results may materially -- 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 U.S. Securities and Exchange Commission. ReneSola does not assume any obligation to update any forward-looking statement except as required under applicable law.

在我們繼續投影片 2 之前，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。前瞻性陳述涉及固有風險和不確定性，因此，公司的業績可能與今天表達的觀點有重大差異。有關這些以及其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的 20-F 表格年度報告和其他文件中。除適用法律要求外，昱輝陽光不承擔任何更新任何前瞻性聲明的義務。

Please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars.

請注意，除非另有說明，電話會議中提到的所有數字均以美元為單位。

Let me now turn the call over to Rebecca, who will translate Mr. Li's prepared remarks. Rebecca?

現在讓我把電話轉給麗貝卡，她將翻譯李先生準備好的演講稿。麗貝卡？

Thank you, Gary. The following are Mr. Li's prepared remarks. Thank you, everyone, for joining our call this morning. We appreciate your interest in ReneSola. I'll begin our call with the important strategic comments about business and our performance, then Maggie Ma, our CFO, will present operating and financial details for the fourth quarter, the full year 2016 and provide 2017 guidance. We will then open the call to Q&A.

謝謝你，加里。以下是李先生準備的發言稿。謝謝大家今天早上加入我們的電話會議。我們感謝您對昱輝陽光的興趣。我將以有關業務和業績的重要戰略評論開始我們的電話會議，然後我們的首席財務官 Maggie Ma 將介紹 2016 年第四季度和全年的運營和財務詳細信息，並提供 2017 年指導。然後我們將打開問答電話。

Now let me quickly recap our Q4 and full year 2016 results. Please turn to Slide 3. We recorded revenue of $232.1 million for the fourth quarter of 2016, in line with our expectations. We shipped approximately 655 megawatts of solar products, up 30% sequentially and essentially flat compared to the fourth quarter of 2015.

現在讓我快速回顧一下我們第四季和 2016 年全年的業績。請參閱投影片 3。2016 年第四季我們的營收為 2.321 億美元，符合我們的預期。我們的太陽能產品出貨量約為 655 兆瓦，季增 30%，與 2015 年第四季相比基本持平。

The LED distribution business was solid, recording a 31. -- 31% sequential revenue increase. The company's overall gross margin was 2.1% below our guidance. On the bottom line, we reported a net loss of $25.5 million.

LED分銷業務表現穩健，錄得31。-- 營收季增 31%。公司的整體毛利率比我們的指引低 2.1%。總而言之，我們的淨虧損為 2,550 萬美元。

For the full year 2016, we reported revenue of $929.8 million and shipped 2.6 gigawatts of solar products. This compares to revenue of $1.28 billion and total shipments of 2.75 gigawatts of solar products in 2015.

2016 年全年，我們的營收為 9.298 億美元，太陽能產品出貨量為 2.6 吉瓦。相較之下，2015 年太陽能產品的營收為 12.8 億美元，總出貨量為 2.75 吉瓦。

LED sales were $30.4 million. Gross margin was 11.8% versus 14.7% in 2015. We reported a net loss of $34.7 million, which compares to a net loss of $5.1 million a year ago. EBITDA declined 30% year-over-year.

LED 銷售額為 3,040 萬美元。毛利率為 11.8%，而 2015 年為 14.7%。我們報告的淨虧損為 3,470 萬美元，而一年前的淨虧損為 510 萬美元。EBITDA 年減 30%。

Although market conditions were challenging in 2016, we continue to execute on the strategy that we detailed in the second half of 2015, shifting our focus toward the downstream project development business and away from manufacturing. Additionally, we are committed to establishing the LED distribution business, improving our balance sheet and reducing our cost structure with a goal of delivering consistent profitability.

儘管 2016 年市場環境充滿挑戰，我們仍繼續執行 2015 年下半年制定的策略，將重點從製造業轉向下游專案開發業務。此外，我們致力於建立 LED 分銷業務、改善我們的資產負債表並降低成本結構，以實現持續盈利的目標。

Now let me update you on downstream project development, which is at the core of our transformation. As we communicated to you in prior earnings calls, downstream projects remain a sizable opportunity globally, and equipment manufacturers like us have a natural advantage in designing and developing projects. I am proud that we continue to gain traction in developing a robust pipeline of future projects across different geographies. We now have over 1 gigawatt of projects on various stages of development. Our shovel-ready pipeline features 700. -- 707 megawatts in the U.S., the U.K., Turkey, China, Japan, Canada, France and Poland. In addition, we have approximately 335 megawatts of projects under construction and over 550 megawatts we expect to be built in 2017. This gives you a sense of the size of the upcoming monetization opportunity of project assets.

現在讓我向您介紹下游專案開發的最新情況，這是我們轉型的核心。正如我們在先前的財報電話會議中向您傳達的那樣，下游專案在全球範圍內仍然存在相當大的機會，像我們這樣的設備製造商在設計和開發專案方面擁有天然優勢。我感到自豪的是，我們在跨不同地區開發強大的未來專案管道方面繼續獲得動力。我們現在有超過 1 吉瓦的專案處於不同的開發階段。我們的鏟運管道有 700 個。——美國、英國、土耳其、中國、日本、加拿大、法國和波蘭為 707 兆瓦。此外，我們還有約 335 兆瓦的專案正在建造，預計 2017 年將建成超過 550 兆瓦。這讓您了解專案資產即將到來的貨幣化機會的規模。

The U.K. remains an excellent market for us, and recent activity continues to highlight our competitive advantage there. We recognized revenue from 6 utility-scale projects in the United Kingdom sold in the fourth quarter. These projects had approximately 26 megawatts of generating capacity. In addition, we intend to sell approximately 14 megawatts of project this year, of which 10 megawatts are under the ROC 1.2 program and should connect to the grid by the end of March.

英國對我們來說仍然是一個優秀的市場，最近的活動繼續凸顯我們在那裡的競爭優勢。我們確認了第四季度出售的英國 6 個公用事業規模項目的收入。這些項目的發電量約為26兆瓦。此外，我們今年計劃出售約14兆瓦項目，其中10兆瓦屬於ROC 1.2計劃，預計在3月底併網。

The U.S. is also a large and robust market for us. We plan to construct around 108 megawatts of projects in 2017, of which 70 megawatts are community solar projects, which have higher PPA price than utility projects. Our U.S. projects are located in California, North Carolina and Minnesota.

美國對我們來說也是一個龐大且強勁的市場。2017年我們計畫興建約108兆瓦項目，其中70兆瓦為社區太陽能項目，其購電協議價格高於公用事業項目。我們的美國計畫位於加州、北卡羅來納州和明尼蘇達州。

In January 2017, we won 13 utility projects in Southern Poland, each with an installed capacity of 1 megawatt. The projects are eligible for a guaranteed tariff under a 15-year power purchase agreement and are expected to be connected to the grid by December 2017.

2017年1月，我們贏得了波蘭南部13個公用事業項目，每個項目裝置容量為1兆瓦。這些項目符合15年期購電協議的保證電價，預計2017年12月併網。

In Canada, we intend to construct approximately 9 megawatts of small-scale utility projects under the FIT 3.0 program in the current calendar year.

在加拿大，我們計劃在本日曆年根據 FIT 3.0 計劃建造約 9 兆瓦的小型公用事業項目。

In Turkey, we expect to construct 13 megawatt of projects this year. All of the projects are unlicensed, thus, qualifying for FIT of $134 per megawatt hour.

在土耳其，我們預計今年將建造 13 兆瓦的項目。所有項目均未獲得許可，因此符合每兆瓦時 134 美元的上網電價補貼資格。

In our domestic market of China, we continue to see an opportunity for smaller projects with more attractive economics. Smaller installations on commercial, industrial and residential buildings can be cost-competitive for the building owners, provide good IRRs and get the support of the Chinese government. According to China's 13th Five-Year Plan for the Development of the Power Industry, the country is targeting an installed capacity of distributed generation of solar power of 60 gigawatts by 2020. China had 10 gigawatts installed capacity of distributed generation solar power at the end of 2016 according to the National Energy Administration. As of March 20, the company had approximately 392 megawatts of solar rooftop projects in the shovel-ready stage in China. All of the projects are on file with the National Development and Reform Commission, and the company has obtained legal rights to develop these projects. The projects are located in the Eastern and Central part of China. We intend to commence construction of all of these projects within the current calendar year. We continue to leverage our global footprint and brand equity to develop an LED distribution business. This remains an exciting new opportunity for us, which we expect will create the next layer of growth on project development.

在中國國內市場，我們繼續看到經濟更具吸引力的小型項目的機會。商業、工業和住宅建築上的小型安裝對於業主來說具有成本競爭力，提供良好的內部收益率並獲得中國政府的支持。根據《電力工業發展「十三五」規劃》，到2020年，我國分散式太陽能發電裝置容量達到60吉瓦。根據國家能源局統計，截至2016年底，我國分散式太陽能發電裝置容量為10吉瓦。截至3月20日，該公司在中國有約392兆瓦的太陽能屋頂計畫處於準備階段。所有專案已在國家發改委備案，公司已取得該專案的合法開發權。這些項目位於中國東部和中部地區。我們打算在本日曆年內開始建造所有這些項目。我們繼續利用我們的全球足跡和品牌資產來發展 LED 分銷業務。這對我們來說仍然是一個令人興奮的新機會，我們預計這將為專案開發帶來新的成長。

As I mentioned earlier, the LED business delivered encouraging financial performance in the fourth quarter. We saw over 30% sequential revenue growth with a gross margin of approximately 26% and had approximately 4,200 customers at year-end. The energy efficiency market remains a very large and growing market, and LED lighting is a critical element. We continue to expect this market to expand substantially as energy efficiency retrofits grow as a trend around the world. We continue to position ourselves to capture this opportunity in the years ahead.

正如我之前提到的，LED業務在第四季的財務表現令人鼓舞。我們的營收季增超過 30%，毛利率約 26%，年底擁有約 4,200 名客戶。能源效率市場仍然是一個非常龐大且不斷成長的市場，而 LED 照明則是關鍵要素。我們繼續預計，隨著能源效率改造成為全球趨勢，該市場將大幅擴張。我們將繼續做好準備，在未來幾年抓住這一機會。

Now let's turn to another key strategic objective. We remain committed to generating cash and paying down debt. I'm proud that we strengthened our balance sheet in 2016 by paying down debt and repurchasing all of the remaining convertible notes. We retired notes in the first quarter to improve our financial flexibility.

現在讓我們轉向另一個關鍵策略目標。我們仍然致力於創造現金和償還債務。我很自豪我們在 2016 年透過償還債務和回購所有剩餘的可轉換票據來加強我們的資產負債表。我們在第一季淘汰了票據，以提高我們的財務靈活性。

In the fourth quarter, we further reduced total debt by approximately $75 million to $624 million. We continue to streamline our operations with tight cost control during down cycles. While we take a cautious approach to spending in a number of areas, we do plan to invest $15 million this year to replace our current manufacturing equipment with diamond wire cutting technology. We believe this will increase wafer capacity by 200 megawatts and reduce silicon usage, thus, lowering our overall production cost.

第四季度，我們的總債務進一步減少了約 7,500 萬美元，達到 6.24 億美元。我們在下行週期中繼續透過嚴格的成本控制來簡化營運。雖然我們在許多領域的支出採取謹慎態度，但我們確實計劃今年投資 1500 萬美元，用鑽石線切割技術取代我們現有的製造設備。我們相信這將使矽片產能增加 200 兆瓦並減少矽的使用，從而降低我們的整體生產成本。

Finally, let me reiterate our commitment to the shareholders who are the owners of the company and our partners. Operating efficiently and profitably is our primary goal, which we believe can drive a higher valuation for the company over time. In addition, a prudent return of capital also reflects our commitment to shareholders. We did this again in the fourth quarter. While we repurchased 725,850 ADS before the reverse split at a cost of approximately $0.5 million dollars.

最後，讓我重申我們對股東（公司所有者）和合作夥伴的承諾。高效營運和獲利是我們的首要目標，我們相信隨著時間的推移，這可以為公司帶來更高的估值。此外，審慎的資本回報也反映了我們對股東的承諾。我們在第四季再次這樣做了。而我們在反向分割之前以約 50 萬美元的成本回購了 725,850 個 ADS。

I will close my comments by noting while our Q4 and full year financial results were mixed, we are optimistic about our opportunities in 2017 and beyond. We are working diligently to create what we believe is the path to sustained profitability. Project development remains our focus, while we also continue to deliver high-quality power products. In the meantime, we will focus on tight cost control, cash generation and further strengthening our balance sheet.

在結束我的評論時，我要指出，雖然我們第四季和全年的財務表現好壞參半，但我們對 2017 年及以後的機會感到樂觀。我們正在努力創造我們認為的持續獲利之路。專案開發仍然是我們的重點，同時我們也持續提供高品質的電力產品。同時，我們將專注於嚴格的成本控制、現金產生和進一步加強我們的資產負債表。

I would like to thank the entire ReneSola team for their ongoing hard work, passion and dedication as we work together towards executing on our strategy to transform ReneSola from a PV product manufacturer and into a multifaceted provider across the solar value chain.

我要感謝昱輝陽光整個團隊的持續辛勤工作、熱情和奉獻精神，我們共同努力執行我們的策略，將昱輝陽光從一家光伏產品製造商轉變為跨太陽能價值鏈的多元化供應商。

Now let me turn the call over to Maggie for details on our financial performance. Maggie?

現在讓我把電話轉給瑪吉，了解我們財務表現的詳細資訊。劣質煤？

Thank you, Mr. Li and Rebecca, and thank you, everyone, for joining us on the call today. I will review our operations and the financial performance for the fourth quarter and full year 2016, and then discuss our outlook.

謝謝李先生和麗貝卡，也謝謝大家今天加入我們的電話會議。我將回顧 2016 年第四季和全年的營運和財務業績，然後討論我們的前景。

Let's begin with Slide 4. Revenue of $232 million for the fourth quarter was up 24% sequentially and down 22% year-over-year. Q4 revenue was in line with our guidance of $220 million to $240 million. The year-over-year decline was largely due to low solar product pricing and fewer product shipments to external customers.

讓我們從投影片 4 開始。第四季營收為 2.32 億美元，季增 24%，年減 22%。第四季營收符合我們 2.2​​ 億至 2.4 億美元的指引。年比下降主要是由於太陽能產品定價較低以及向外部客戶發貨的產品減少。

Revenue for the full year was approximately $930 million, down $27.5 million -- 27.5% when compared to last year. Gross profit of $5 million declined 74% sequentially and 90% year-over-year, falling short of our expectations.

全年收入約 9.3 億美元，比去年減少 2,750 萬美元，即 27.5%。毛利為 500 萬美元，季減 74%，年減 90%，低於我們的預期。

Q4 gross margin was 2.1%, down from 10.1% in Q3 2016 and 16% in Q4 2015. The sharp decline in gross margin resulted from an inventory provision coupled with lower wafer and module ASPs. The gross margin in 2016 was $109.5 million, down 42% year-over-year. Gross margin for 2016 were 11.8%, which compares to 14.7% last year.

第四季毛利率為 2.1%，低於 2016 年第三季的 10.1% 和 2015 年第四季的 16%。毛利率急劇下降是由於庫存準備以及晶圓和模組平均售價下降所致。2016年毛利率為1.095億美元，較去年同期下降42%。2016 年毛利率為 11.8%，去年為 14.7%。

Operating loss for the fourth quarter was $21.8 million compared to operating loss of $11.9 million last quarter and the operating income of $16.9 million in the prior quarter. Operating expense for the fourth quarter of 2016 was $26.8 million, down 3.7% sequentially and down 3.1% year-over-year. The decrease in operating expense in the quarter was largely attributable to tight cost control initiatives coupled with the reversal of the warranty expenses.

第四季營運虧損為 2,180 萬美元，上一季營運虧損為 1,190 萬美元，上一季營運收入為 1,690 萬美元。2016 年第四季營運費用為 2,680 萬美元，季減 3.7%，年減 3.1%。本季營運費用的下降主要歸因於嚴格的成本控制措施以及保固費用的逆轉。

Sequentially, SG&A expenses decreased 29%, and R&D expenses decreased 44% when compared to the same period last year. Operating loss for full year 2016 was $15.1 million compared to an operating income of $29.3 million last year. We continue to take a more cautious approach to spending in a number of areas. In particular, we remain prudent in managing our discretionary expense across the company. As discussed, we plan to remain a healthy company during a down cycle and be ready for the higher growth and better profit as the industry recovers.

與去年同期相比，SG&A 費用下降了 29%，研發費用下降了 44%。2016 年全年營業虧損為 1,510 萬美元，而去年營業收入為 2,930 萬美元。我們繼續對一些領域的支出採取更謹慎的態度。特別是，我們在管理整個公司的可自由支配費用方面保持謹慎。正如所討論的，我們計劃在經濟下行週期中保持一家健康的公司，並為隨著行業復甦而實現更高的增長和更好的利潤做好準備。

Below the operating line, nonoperating expense of $0.2 million includes net interest expense of $7.1 million, offset by foreign exchange gain of $4.9 million and gains on derivatives of $2 million.

在營業線以下，20 萬美元的營業外支出包括 710 萬美元的淨利息支出，被 490 萬美元的外匯收益和 200 萬美元的衍生性商品收益所抵銷。

Net loss for the fourth quarter was $25.5 million, which compares to a net loss of $20.5 million in Q3 of 2016 and a net income of $6.7 million in the same quarter last year.

第四季淨虧損為 2,550 萬美元，而 2016 年第三季淨虧損為 2,050 萬美元，去年同期淨利為 670 萬美元。

Loss per ADS was $1.26 in the quarter and compares to a loss per ADS of 1. -- $0.01 in Q3 of 2016 and earnings per ADS of $0.33 in the prior quarter.

本季每份美國存託憑證虧損為 1.26 美元，而 2016 年第三季每份美國存託憑證虧損為 1.-0.01 美元，上一季每份美國存託憑證獲利為 0.33 美元。

We recorded a wider loss for the year of $34.7 million. This compares to a net loss of $5.1 million last year.

今年我們錄得更大的虧損，達 3,470 萬美元。相比之下，去年淨虧損為 510 萬美元。

Slide 5 provides a summary of key line items of our income statement over the last several quarters.

投影片 5 總結了過去幾季我們損益表的關鍵項目。

Please turn to Slide 6, which highlights portions of our balance sheet. Cash and equivalents, including the restricted cash, ended the year at $133.2 million. During the quarter, the company further reduced the total debt by approximately $75 million as we paid down short-term debt. Our long-term objective remains to reduce debt substantially, and we strongly believe that each $1 of debt reduction will yield a similar increase in the value of the company's equity.

請參閱投影片 6，其中重點介紹了我們資產負債表的部分內容。現金及等價物，包括限制性現金，截至年底為 1.332 億美元。本季度，由於我們償還了短期債務，公司的總債務進一步減少了約 7,500 萬美元。我們的長期目標仍然是大幅減少債務，我們堅信，債務每減少 1 美元，公司股權價值就會隨之增加。

Slide 7 highlights the recent trend of working capital efficiency. Days sales outstanding Q4 declined to 59 days from 86 days in Q3. Days of inventory decreased to 51 days in Q4 from 94 days in Q3.

投影片 7 強調了營運資本效率的近期趨勢。第四季的應收銷售天數從第三季的 86 天下降到 59 天。庫存天數從第三季的 94 天減少到第四季的 51 天。

Before I move on to our project sales in the quarter, I want to reiterate that the entire finance team remains focused on improving our balance sheet and that we are happy with the continued progress the team made in the past year.

在繼續本季度的專案銷售之前，我想重申，整個財務團隊仍然專注於改善我們的資產負債表，並且我們對團隊在過去一年中取得的持續進展感到滿意。

Now let's move on to the details of our project pipeline. Slide 8 shows our recent history of sales, including the 6 utility projects in the U.K. in the fourth quarter. Slide 8 shows our geographic footprint, and Slide 9 breaks down our project pipeline by country. As Mr. Li mentioned, we now have a pipeline of over 1 gigawatt of projects in various stages of development.

現在讓我們繼續了解專案管道的詳細資訊。投影片 8 顯示了我們最近的銷售歷史，包括第四季度英國的 6 個公用事業項目。投影片 8 顯示了我們的地理足跡，投影片 9 按國家細分了我們的專案管道。正如李總所提到的，我們現在有超過1吉瓦的專案處於不同的開發階段。

Our shovel-ready pipeline features 707 megawatts across different geographic regions, as shown here on Slide 10. In addition, we have approximately 335 megawatts of projects under construction.

我們的鏟運管道在不同地理區域擁有 707 兆瓦的電力，如幻燈片 10 所示。此外，我們還有約335兆瓦的在建工程。

Slide 11 summarizes the results for the LED business. After 1 quarter of top line decline, in Q3, we again experienced solid growth in LED revenue in the fourth quarter. Revenue came in at $9.3 million in Q4, up nearly 31% from $7.1 million in the third quarter. This increase in revenue reflects higher demands from the U.S., Europe and India.

投影片 11 總結了 LED 業務的結果。經過第一季營收下滑後，第三季我們的 LED 營收在第四季再次穩健成長。第四季的營收為 930 萬美元，比第三季的 710 萬美元成長近 31%。收入的成長反映了美國、歐洲和印度的更高需求。

Gross margin was approximately 26% in Q4, down from 27% in the prior quarter. We remain optimistic about the growth prospect from the LED business.

第四季毛利率約為 26%，低於上一季的 27%。我們對LED業務的成長前景保持樂觀。

At the end of December, we have about 4,200 active customers. We believe we can leverage our brand name and the global distribution footprint to build an attractive high-margin business. While the LED business accounted for approximately 3% of total revenue in 2016, we expect it to grow into a meaningful financial contributor in the year ahead.

截至 12 月底，我們約有 4,200 名活躍客戶。我們相信，我們可以利用我們的品牌名稱和全球分銷足跡來建立有吸引力的高利潤業務。雖然 LED 業務約佔 2016 年總營收的 3%，但我們預計它將在未來一年成長為一個有意義的財務貢獻者。

Next, let me summarize our module and wafer product shipment in the quarter shown on Slide 12. Our module and the wafer business remains an attractive business segment given the cost reduction initiatives we put in place. As anticipated, our in-house manufacturing cost per watt in Q4 was in the $0.35 due to declines in processing and silicon cost. We expect the in-house cost per watt in 2016 to further decrease.

接下來，讓我總結一下投影片 12 所示季度中我們的模組和晶圓產品出貨量。鑑於我們採取的成本削減舉措，我們的模組和晶圓業務仍然是一個有吸引力的業務領域。正如預期的那樣，由於加工和矽成本下降，我們第四季度每瓦的內部製造成本為 0.35 美元。我們預計 2016 年內部每瓦成本將進一步下降。

Total solar module shipment in the fourth quarter was 331 megawatts compared to 191 megawatts in Q3 of 2016 and 373 megawatts in Q4 of 2015. The year-over-year decrease reflects our gradual exit from the OEM business as we successfully transition our business model to focus on project development. The sequential increase was due to higher demand from the domestic market. Wafer shipments was 306 megawatts in Q4 of 2016 compared to 291 megawatts in the previous quarter and 270 megawatts in the same quarter last year.

第四季太陽能模組總出貨量為 331 兆瓦，而 2016 年第三季為 191 兆瓦，2015 年第四季為 373 兆瓦。同比下降反映了我們逐漸退出 OEM 業務，因為我們成功地將業務模式轉變為專注於專案開發。環比增長是由於國內市場需求增加。2016 年第四季晶圓出貨量為 306 兆瓦，上一季為 291 兆瓦，去年同期為 270 兆瓦。

The pie chart highlights the geographic breakdown of module shipments in the fourth quarter. Demand in China rebounded in Q4, which represents 69% of our total shipments in the quarter. Japan remains an important market for us, representing 7% of total shipment in Q4. India continues to be a growth market for us, representing 6% in Q4. The U.S. accounted for less than 1%, and the rest of the world was about 18%.

餅圖突顯了第四季度組件出貨量的地理分佈。中國的需求在第四季出現反彈，占我們該​​季度總出貨量的 69%。日本仍然是我們的重要市場，佔第四季總出貨量的 7%。印度仍然是我們的成長市場，第四季佔 6%。美國佔比不到1%，世界其他地區約佔18%。

Our module ASP declined to $0.40 per watt in Q4 2016 from $0.45 per watt in the third quarter of 2016 compared to prior to the quarter as we did not ship much to the U.S. in Q4, which typically commands higher pricing.

與本季之前相比，我們的組件平均售價從2016 年第三季的每瓦0.45 美元下降到2016 年第四季的每瓦0.40 美元，因為我們在第四季向美國發貨的數量不多，而美國通常需要更高的定價。

Finally, we conclude with guidance, which is on Slide 13. In the first quarter 2016 -- 2017, we expect revenue to be in the range of $130 million to $150 million, external wafer shipments in the range of 240 million to 260 million and external module shipment in the range of 250 million to 260 million -- sorry, 250 -- 260 megawatts.

最後，我們以幻燈片 13 上的指導作為結束。2016-2017年第一季，我們預計營收將在1.3億至1.5億美元之間，外部晶圓出貨量將在2.4億至2.6億片之間，外部組件出貨量將在2.5億至2.6億片之間—— - 抱歉，250 - 260 兆瓦。

The Q1 revenue guidance reflects our expectations that we will be redirecting more external module shipments to the downstream projects. For the full year 2017, we expect revenue in the range of $900 million to $1 billion.

第一季的營收指引反映了我們的預期，即我們將把更多的外部組件出貨量轉向下游專案。2017 年全年，我們預計營收在 9 億美元至 10 億美元之間。

Before we go to the question-and-answer segment of our call, I would like to take a minute to cover 2 other updates: First is our compliance with the New York Stock Exchange listed -- listing requirements. On March 1, 2017, the NYSE informed us that the company has retained compliance with their continued listing requirement of a minimum average of a closing price at $1 per share over the previous consecutive 30 trading days period.

在我們進入電話問答部分之前，我想花一點時間介紹其他兩個更新：首先是我們遵守紐約證券交易所上市要求。2017 年 3 月 1 日，紐約證券交易所通知我們，該公司仍遵守其持續上市要求，即先前連續 30 個交易日期間的最低平均收盤價為每股 1 美元。

The second update is regarding antidumping duties being imposed on us in the European Union. Our press release details demand notes from the U.K. and the Dutch Customs authorities relating to shipments into those countries several years back. These shipments came from our India OEM partners. We believe the authorities are mistaken in their conclusion and that we intend to appeal the decision. The appeal will unfold over the course of this year, and we'll update you as we make progress.

第二個更新是關於歐盟對我們徵收的反傾銷稅。我們的新聞稿詳細介紹了英國和荷蘭海關當局對幾年前運往這些國家的貨物的要求說明。這些貨物來自我們的印度 OEM 合作夥伴。我們認為當局的結論是錯誤的，我們打算對該決定提出上訴。該呼籲將在今年展開，我們將在取得進展時向您通報最新情況。

We would now like to open up the call for any questions that you may have for us. Operator, please go ahead.

我們現在願意開放電話詢問您可能向我們提出的任何問題。接線員，請繼續。

(Operator Instructions) And our first question comes from the line of Justin Clare from Roth Capital.

（操作員說明）我們的第一個問題來自 Roth Capital 的 Justin Clare。

So first, could you share what your margins were in Q4 for module sales, wafer sales and for the projects that you sold in the U.K. and China?

首先，您能否分享一下第四季度組件銷售、晶圓銷售以及在英國和中國銷售的項目的利潤率是多少？

So overall, the module sales in Q4, we generated like a mid-single-digit margin for module selling.

因此，總的來說，第四季度的模組銷售，我們產生了中等個位數的模組銷售利潤。

Okay. And then what did you see for the wafer sales?

好的。那麼您對晶圓銷售有何看法？

You mean Q4?

你是說Q4嗎？

Yes, in Q4 for the wafer business.

是的，晶圓業務在第四季。

Okay. In Q4, since there was a sharply decline in wafer price and also with the price of poly was still in a high position in Q4, actually, the margin of the wafer is quite small. Or we could say that is generating 0 margin in Q4. But entering into the year 2017, along with the decline of module price -- polysilicon price, we can see that the margin of -- and also with our further cost reduction in the future, we can see that the margin for wafer will gradually increase in Q1 and Q2.

好的。第四季度，由於矽片價格大幅下滑，加上第四季多晶矽價格仍處於高位，實際上矽片的利潤率很小。或者我們可以說第四季的利潤率為 0。但是進入2017年，隨著組件價格——多晶矽價格的下降，我們可以看到利潤率——而且隨著我們未來成本的進一步降低，我們可以看到矽片的利潤率會逐漸提高。在Q1 和Q2 中。

Okay. Could you share approximately what your expectations are in Q1 for module margins and for wafer margins?

好的。您能否大致分享一下您對第一季組件利潤率和晶圓利潤率的預期？

We think that in Q1, the module margin will keep flat because the -- you can see that the price declined a little. But however, we, at the same time, entered into some cost-reduction initiatives. So as well as the wafer margins. But in Q1, we can see that since we will have a maintenance in -- equipment maintenance in our polysilicon plant, so there will be a slight impact to our gross margin.

我們認為，在第一季度，組件利潤率將保持不變，因為——你可以看到價格略有下降。但同時，我們採取了一些降低成本的措施。晶圓邊緣也是如此。但在第一季度，我們可以看到，由於我們的多晶矽工廠將進行設備維護，因此對我們的毛利率會有輕微影響。

Okay, great. And then moving to your project business, you have plans to construct over 550 megawatts in 2017. Can you give us a sense for how many megawatts you could sell in each region as we move through the year?

好的，太好了。然後轉向您的專案業務，您計劃在 2017 年建造超過 550 兆瓦。您能否告訴我們，隨著時間的推移，您可以在每個地區銷售多少兆瓦？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

For overseas regions, we plan to sell over 140 megawatts this year.

對於海外地區，我們今年計劃銷售超過140兆瓦。

[Foreign Language]

[外語]

In China, we plan to sell around 300 megawatts.

在中國，我們計劃銷售約300兆瓦。

Okay. And can you give us a sense for when those sales could happen? Do you expect any project sales in Q1? Or should we be thinking more about Q2, Q3 and Q4?

好的。您能否告訴我們這些銷售何時會發生？您預計第一季專案銷售情況如何？或者我們應該更多地考慮第二季、第三季和第四季？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

Well, we don't expect much sales from the project sales in Q1. But in Q2, we could expect around 120 megawatts.

嗯，我們預計第一季的專案銷售不會有太多銷售額。但在第二季度，我們預計發電量約為 120 兆瓦。

Our next question comes from the line of Maheep Mandloi from Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Maheep Mandloi。

Just wondered during the 2017 guidance, does the $900 million to $1,000,000,000 include those 440 megawatts of downstream sales you just spoke about? Or does it include any other sales as well?

只是想知道2017年的指導中，9億至10億美元是否包括您剛才談到的440兆瓦的下游銷售？或者它還包括任何其他銷售嗎？

Right. It includes the project sales and the LED sales.

正確的。包括專案銷售和LED銷售。

Got that. And how should investors think about cash over here? Like, how much cash do you plan to generate in the year? Or how much of that would be used for CapEx in the year? Could you provide some color on that?

了解。投資者該如何看待這裡的現金？例如，您計劃今年產生多少現金？或者說，其中有多少將用於當年的資本支出？你能提供一些顏色嗎？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

So we have invested a lot of money in the project business in the prior year, so we expect that we could balance -- we could recycle the money that we have invested in the prior years.

所以我們在前一年在專案業務上投入了大量資金，所以我們希望我們能夠平衡——我們可以回收我們在前幾年投資的錢。

[Foreign Language]

[外語]

And for other projects such as in the U.S. and China, we would -- we will use project financing to develop those projects.

對於美國和中國等其他項目，我們將使用項目融資來開發這些項目。

Got that. And in terms of your debt strategy, could you just help us explain how do you plan to reduce that in 2017?

了解。就您的債務策略而言，您能否幫我們解釋一下您計劃如何在 2017 年減少債務？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

We plan to repay -- we plan to pay down the debt by 5% to 10% every year. Right now, we have less than $600 million of debt, excluding the (inaudible).

我們計劃償還——我們計劃每年償還債務 5% 到 10%。目前，不包括（聽不清楚），我們的債務不到 6 億美元。

And of that $500 million -- $600 million, how much of the current debt is project debt or project financing-related debt?

在這 5 億至 6 億美元中，當前債務中有多少是專案債務或與專案融資相關的債務？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

Around $30 million are project-related loans.

大約 3000 萬美元是與項目相關的貸款。

Okay. And just switching gears to the LED business, could you talk about your growth expectations in 2017?

好的。剛剛轉向LED業務，您能談談2017年的成長預期嗎？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

We generated roughly around $30 million for 2016, and we expect to generate revenue from the LED business of $60 million to $70 million for the year of 2017.

2016 年我們的營收約為 3,000 萬美元，預計 2017 年 LED 業務的收入將達到 6,000 萬至 7,000 萬美元。

And just the last question from me. In terms of module ASPs, you said it's $0.40 in Q4 of 2016. How do you see that trending in Q1 of 2017 and later half of this year?

這只是我的最後一個問題。就模組 ASP 而言，您說 2016 年第四季為 0.40 美元。您如何看待 2017 年第一季和今年下半年的趨勢？

[Foreign Language]

[外語]

[Foreign Language]

[外語]

Mr. Li thinks that the ASP is going to trend down in 2017.

李先生認為2017年平均售價將呈現下降趨勢。

Any color on how much that could be in -- by end of this year?

到今年年底，有多少數字可以透露？

[Foreign Language]

[外語]

Well, he -- we now see a Q1 ASP of $0.37 right now, and we expect that, that ASP is going to decline by around $0.01 to $0.02 every quarter.

好吧，我們現在看到第一季的平均售價為 0.37 美元，我們預計平均售價將每季下降約 0.01 至 0.02 美元。

(Operator Instructions) Thank you. Seeing that there are no more questions in the queue, let me turn the call back to Rebecca Shen for closing remarks.

（操作員說明）謝謝。看到隊列中沒有更多問題，讓我將電話轉回給 Rebecca Shen 進行結束語。

Thank you, operator. Let me make some closing remarks on behalf of Mr. Li. We continue to believe that our strategy is the right one as our strategic shift to project development continues to gain traction. We intend to further grow our project development this year and focus our assets on the vast opportunities for attractive and rapid return on investment in 2017 and beyond.

謝謝你，接線生。我謹代表李先生致閉幕詞。我們仍然相信，隨著我們向專案開發的策略轉變繼續獲得牽引力，我們的策略是正確的。我們打算今年進一步擴大我們的專案開發，並將我們的資產集中在 2017 年及以後獲得有吸引力和快速投資回報的巨大機會。

I also want to reiterate that we are committed to creating long-term shareholder value with a balanced growth and strategy and sharp focus on profitability through operational excellence.

我還想重申，我們致力於透過平衡的成長和策略創造長期股東價值，並透過卓越營運高度關注獲利能力。

That concludes our call today. You may all disconnect.

我們今天的電話會議到此結束。你們都可以斷開連線。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與。你們都可以斷開連線。