Emeren Group Ltd (SOL) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen. Welcome and thank you for standing by for Emeren Group Limited third-quarter 2024 earnings conference call. Please note that we are recording today's conference call. (Operator Instructions)

女士們、先生們，大家好。歡迎並感謝您出席 Emeren Group Limited 2024 年第三季財報電話會議。請注意，我們正在錄製今天的電話會議。 （操作員說明）

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

我現在將電話轉給 Blueshirt 集團董事總經理加里·德沃查克 (Gary Dvorchak)。請繼續，Dvorchak 先生。

Thank you, operator, and hello, everyone. Thank you for joining us today to discuss third-quarter 2024 results. We released our shareholder letter after the market closed today, and it's available on our website at ir.emeren.com. We also provided a supplemental presentation that's posted on our IR website that we'll reference during our prepared remarks.

謝謝接線員，大家好。感謝您今天加入我們討論 2024 年第三季業績。今天收盤後，我們發布了股東信函，可在我們的網站 ir.emeren.com 上取得。我們還提供了發佈在我們的 IR 網站上的補充演示文稿，我們將在準備好的評論中引用該演示文稿。

On the call with me today are Mr. Yumin Liu, Chief Executive Officer; and Mr. Ke Chen, Chief Financial Officer.

今天與我通話的是執行長劉玉民先生；陳科先生，財務長。

Before we continue, please turn to slide 2. Let me remind you that remarks made during this call may include predictions, estimates or other information that might be considered forward-looking. These forward-looking statements represent Emeren Group's current judgment for the future.

在我們繼續之前，請翻到投影片 2。這些前瞻性陳述代表了Emeren Group 目前對未來的判斷。

However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under Risk Factors and elsewhere in Emeren Group's filings with the SEC. Please do not place undue reliance on these forward-looking statements, which reflect Emeren Group's opinions only as of the date of this call. Emeren Group is not obliged to update you on any revisions to these forward-looking statements.

然而，它們面臨風險和不確定性，可能導致實際結果出現重大差異。這些風險在 Emeren Group 向 SEC 提交的文件中的風險因素和其他部分中進行了描述。請不要過度依賴這些前瞻性陳述，這些陳述僅反映 Emeren 集團截至本次電話會議之日的意見。 Emeren Group 沒有義務向您通報這些前瞻性聲明的任何修訂。

In addition, please note that all financial numbers discussed in this call are unaudited. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in US dollars.

此外，請注意，本次電話會議中討論的所有財務數據均未經審計。另請注意，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。

With that, let me now turn the call over to Mr. Yumin Liu. Yumin, go ahead.

現在我把電話轉給劉玉民先生。佑敏，繼續吧。

Thank you, Gary. Thank you, everyone, for joining our call today. To start, I'll provide an overview of our operational performance for Q3 2024. Then our CFO, Ke Chen, will walk through our Q3 financial results and our outlook.

謝謝你，加里。謝謝大家今天加入我們的電話會議。首先，我將概述我們 2024 年第三季的營運表現。

In Q3, our company executed on its bottom line focus, achieving solid profitability despite softer-than-anticipated revenue resulting from delays in closing scheduled project sales. With $12.9 million in revenue, we achieved a gross profit of approximately $5.6 million, yielding a solid gross margin of 43.8%, $2.8 million -- sorry, $2.1 million in operating profit and $4.8 million in net income attributable to Emeren Group Limited's common shareholders.

第三季度，儘管由於預定項目銷售延遲導致收入低於預期，但我們公司仍以盈利為重點，實現了穩健的盈利能力。憑藉1,290 萬美元的收入，我們實現了約560 萬美元的毛利潤，毛利率高達43.8%，即280 萬美元——抱歉，營業利潤為210 萬美元，歸屬於Emeren Group Limited 普通股股東的淨利潤為480 萬美元。

Strong EBITDA of $8.5 million further reflects our commitment to sustainable profitability and core business resilience. Our net income was supported by a foreign exchange gain exceeding $4.6 million as the euro strengthened during the quarter, offsetting a similar foreign exchange loss early in the year, with Europe generating a majority of our revenue in Q3, we benefited from a strong euro.

850 萬美元的強勁 EBITDA 進一步體現了我們對永續獲利能力和核心業務彈性的承諾。隨著歐元在本季度走強，我們的淨收入得到了超過 460 萬美元的外匯收益的支撐，抵消了年初類似的外匯損失，第三季度我們的大部分收入來自歐洲，我們受益於強勢歐元。

Besides, our focus on high-margin growth remains robust. The independent power producer or IPP segment generated $9.4 million, driven by seasonal strength in European assets. Our development service agreement, or DSA model, also expanded in key markets, adding $1.3 million from Italy, $1 million from France, and $0.9 million from our first battery energy storage system, our BESS project portfolio, in the US.

此外，我們對高利潤成長的關注仍然強勁。受歐洲資產季節性走強的推動，獨立電力生產商或 IPP 部門創造了 940 萬美元的收入。我們的開發服務協議（DSA 模式）也在主要市場擴展，增加了來自義大利的130 萬美元、來自法國的100 萬美元以及來自我們在美國的第一個電池儲能係統（我們的BESS 專案組合）的90 萬美元。

Revenue was lower than anticipated due to timing issue, particularly delays in government approvals for three projects in Europe. This remains in our pipeline and are expected to contribute to revenue once approvals are secured.

由於時間問題，特別是歐洲三個項目的政府批准延遲，收入低於預期。這仍在我們的管道中，一旦獲得批准，預計將有助於收入。

Let's move to the progress of each of our business segments. First, about our DSA. In Q3, we executed a 394-megawatt BESS-DSA with PLT Energia and completed the sale of 57-megawatt solar projects to Trina through a mixed DSA/SPA structure. Our DSA approach is a game-changing, reliable and scalable business model that enables us to monetize projects at early to mid-stages while securing high-quality contracted revenue.

讓我們來看看我們每個業務部門的進展。首先，關於我們的 DSA。第三季度，我們與PLT Energia實施了394兆瓦BESS-DSA，並透過DSA/SPA混合結構完成了向天合光能出售57兆瓦太陽能專案。我們的 DSA 方法是一種改變遊戲規則、可靠且可擴展的業務模式，使我們能夠在早期到中期階段將專案貨幣化，同時確保高品質的合約收入。

This strategic model delivers unique benefits, including positive cash flow and effective risk mitigation throughout the project life cycle. Building on this momentum, we also signed our first DSA contract in the US for a 72-megawatt BESS project portfolio in California.

這種策略模式提供了獨特的優勢，包括整個專案生命週期的正現金流和有效的風險緩解。在此勢頭的基礎上，我們還在美國簽署了第一份 DSA 合同，涉及加州的 72 兆瓦 BESS 項目組合。

As of September 30, we have secured DSA contracts with nine partners, including Glenmount Partners, Matrix Renewables and PLT Energia, covering 28 projects totaling over 2.1 gigawatts with 84% allocated to battery energy storage system, or BESS, and 16% allocated to PV, resulting in an expected contracted revenue exceeding $69 million to be monetized within the next two to three years.

截至9月30日，我們已與Glenmount Partners、Matrix Renewables和PLT Energia等9家合作夥伴簽訂了DSA合同，涵蓋28個項目，總容量超過2.1吉瓦，其中84%分配給電池儲能係統（BESS ），16%分配給光伏預計合約收入將在未來兩到三年內變現超過 6,900 萬美元。

Additionally, over 2 gigawatts of DSAs are under negotiation, estimated to bring another $100 million in revenue. This robust DSA pipeline encompassing both contracted projects and potential agreements and with nearly 90% based in Europe underlines our strength in markets that favor renewable energy, driving our financial stability and growth.

此外，超過 2 吉瓦的 DSA 正在談判中，預計將帶來另外 1 億美元的收入。這一強大的 DSA 管道涵蓋了合約項目和潛在協議，其中近 90% 位於歐洲，突顯了我們在有利於再生能源的市場中的實力，推動了我們的財務穩定和成長。

In November, we announced a DSA with up in Arpinge for a 300-megawatt battery storage portfolio in Southern Italy. This partnership, our fourth with an Italian ESG-focused leader, strengthens our position in Italy's battery storage market, where we have approximately 2 gigawatts in the permitting process. The collaboration supports Italy's clean energy transition goals and aligns with our focus on high-value growth opportunities in battery storage market.

11 月，我們宣布與 Arpinge 建立 DSA，在義大利南部建立 300 兆瓦的電池儲存組合。此次合作是我們與關注 ESG 的義大利領先企業的第四次合作，加強了我們在義大利電池儲存市場的地位，我們在該市場的許可過程中擁有約 2 吉瓦的容量。此次合作支持義大利的清潔能源轉型目標，並符合我們對電池儲存市場高價值成長機會的關注。

Second, regarding our solar power project development. In Q3, we successfully closed the sale of our solar project portfolio of 42 megawatts in Spain to CVE Espana. Developed over the past few years, this portfolio is projected to generate approximately 92.8 gigawatt hours of solar power annually, offsetting nearly 20,000 tons of carbon dioxide emissions each year.

第二，關於我們的太陽能發電計畫的發展。第三季度，我們成功將西班牙 42 兆瓦的太陽能專案組合出售給 CVE Espana。該投資組合經過過去幾年的開發，預計每年可產生約 92.8 吉瓦時的太陽能，每年抵消近 20,000 噸二氧化碳排放。

Additionally, we sold a 57 megawatt solar project portfolio to Trina Solar, showcasing the strength of our European development efforts. Due to project delays, the sales of our US community solar project portfolio and some projects in Spain and Italy did not get closed by the end of Q3. For example, certain closings expected with CVE in Spain were delayed due to lengthy local administrative approvals.

此外，我們也向天合光能出售了 57 兆瓦的太陽能專案組合，展示了我們在歐洲發展努力的實力。由於專案延誤，我們的美國社區太陽能專案組合以及西班牙和義大利的部分專案在第三季末尚未完成銷售。例如，由於當地行政審批時間過長，預計 CVE 在西班牙的某些交割被推遲。

Some of these delayed projects sales are expected to close in Q4. Last but not least, our IPP assets demonstrated robust growth and profitability throughout the third quarter, contributing approximately 73.2% of our total revenue for the period.

其中一些延遲項目的銷售預計將在第四季度完成。最後但並非最不重要的一點是，我們的 IPP 資產在整個第三季度表現出強勁的成長和獲利能力，約占我們同期總收入的 73.2%。

We continue to optimize operations across our solar farms, including Branston, reinforcing the IPP segment as a cornerstone of our business model that offers dependable, stable and predictable cash flow. In September, we energized a 4.5 megawatt solar power plant at Luxshare iTech, a major facility of Luxshare Precision Industries Corporation Limited, a public company listed in Shenzhen Stock Exchange in China and a prominent Apple supplier active in Apple's Supplier Clean Energy program.

我們繼續優化包括布蘭斯頓在內的太陽能發電場的運營，加強IPP部門作為我們提供可靠、穩定和可預測現金流的業務模式的基石。 9 月，我們為立訊精密工業股份有限公司(Luxshare Precision Industries Corporation Limited) 的主要工廠4.5 兆瓦太陽能發電廠供電。也是活躍於Apple 供應商清潔能源計畫的著名Apple 供應商。

This collaboration reflects our shared commitment to environmental responsibility and Emeren's expanding renewable energy presence. In Q3 2024, we connected 7.2 megawatts of solar projects across China, while our 35 megawatt hour of battery storage portfolio was fully integrated into Huaneng Power International's virtual power plant platform.

此次合作體現了我們對環境責任的共同承諾以及 Emeren 不斷擴大的可再生能源業務。 2024年第三季度，我們在中國連接了7.2兆瓦的太陽能項目，而我們35兆瓦時的電池儲存組合已完全整合到華能國際的虛擬電廠平台中。

In consideration of our strategy to grow IPP assets, we decided to retain a 52.4 megawatt project portfolio in Hungary, previously planned for sale as an IPP asset today.

考慮到我們發展IPP資產的策略，我們決定保留匈牙利的52.4兆瓦專案組合，此前計劃今天作為IPP資產出售。

30 megawatts of the portfolio is already operational with the remainder set to be energized by the year end. This decision leverages strong project returns, Hungary's positive economic outlook and significant foreign investment into the country.

該投資組合中的 30 兆瓦已投入運營，其餘部分將於年底前通電。這項決定充分利用了強勁的項目回報、匈牙利積極的經濟前景以及對該國的大量外國投資。

Hungary's commitment to renewables, evident in ambitious solar goals and updated energy plan further enhances the portfolio's value as an IPP. While this shift impacts full year's revenue, it aligns with our long-term growth and value creation goals amid favorable market conditions.

匈牙利對再生能源的承諾，體現在雄心勃勃的太陽能目標和更新的能源計畫中，進一步提高了該投資組合作為獨立發電廠的價值。雖然這項轉變影響全年收入，但它符合我們在有利的市場條件下的長期成長和價值創造目標。

Furthermore, with supportive local policies in Hungary's energy storage market, we see expanding opportunities in the country and battery storage facilities are now planned for several projects within this portfolio.

此外，隨著匈牙利儲能市場的當地政策支持，我們看到該國的機會不斷擴大，目前該投資組合中的多個項目正在規劃電池儲存設施。

As we approach the close of 2024 and look to 2025 and beyond, we are strengthening our presence in some of the world's fastest-growing solar and battery storage market which are supported by increasing demand for clean energy, favorable government policies, and advancing technologies.

隨著2024 年即將結束並展望2025 年及以後，我們正在加強我們在一些世界上增長最快的太陽能和電池儲存市場的影響力，這些市場受到清潔能源需求不斷增長、有利的政府政策和先進技術的支持。

Our primary objectives remain clear: advancing early-stage projects, expanding our DSA partnerships across Europe and US and refining our strategies to unlock the full potential of our development portfolio. While certain project sales in Europe may extend into 2025 due to the delays in government approvals, our core business lines remain robust, and we are confident in our ability to deliver substantial growth in the fourth quarter, driven by a strong pipeline and favorable market conditions.

我們的主要目標仍然明確：推進早期項目，擴大我們在歐洲和美國的 DSA 合作夥伴關係，並完善我們的策略以釋放我們開發組合的全部潛力。儘管由於政府批准延遲，歐洲的某些項目銷售可能會延續到2025 年，但我們的核心業務仍然強勁，在強勁的管道和有利的市場條件的推動下，我們對第四季度實現大幅增長的能力充滿信心。

With that, let me turn the call over to our CFO, Ke Chen, to discuss our financial performance and guidance. Ke?

接下來，讓我將電話轉給我們的財務長陳科，討論我們的財務表現和指導。柯？

Thank you, Yumin, and thanks, everyone, again for joining us on the call today. Our third-quarter revenue totaled $12.9 million, coming in below expectation due to delayed project closing pending government approvals. Nevertheless, revenue was bolstered by strong performance in our high-margin IPP segment and expanding DSA activity across Europe and the US. With a robust pipeline, we are well positioned for growth as these delayed projects are sold.

謝謝你，Yumin，也謝謝大家今天加入我們的電話會議。我們第三季的收入總計 1,290 萬美元，由於項目關閉等待政府批准而延遲，低於預期。儘管如此，我們的高利潤 IPP 部門的強勁表現以及歐洲和美國不斷擴大的 DSA 活動提振了收入。憑藉強大的管道，隨著這些延遲項目的出售，我們已做好了實現成長的準備。

Turning to our revenue by segment. IPP was the primary driver, contributing 73% of our total revenue, followed by DSA at 10%. Notably, DSA includes revenue generated from development servers throughout the project life cycle. While revenue from DSA project ownership transfer is generated -- is generally recognized as project development revenue.

轉向我們按部門劃分的收入。 IPP 是主要驅動力，占我們總收入的 73%，其次是 DSA，佔 10%。值得注意的是，DSA 包括整個專案生命週期中開發伺服器產生的收入。雖然 DSA 專案所有權轉讓產生的收入通常被視為專案開發收入。

Regarding our gross profit in Q3, it was $5.6 million compared to $9.4 million in Q2 2024 and $5.7 million in Q3 2023. Gross margin was 43.8% compared to 31.2% in Q2 2024 and 40.8% in Q3 2023. The year-over-year increase was due to the favorable margin within the revenue from DSA and IPP projects.

第三季的毛利為560 萬美元，而2024 年第二季為940 萬美元，2023 年第三季為570 萬美元。第三季為40.8%。

Our operating expenses were $3.5 million, down from $6.4 million in Q2 2024 and $9.6 million in Q3 2023. The decrease was mainly due to lower G&A expenses, thanks to our continued cost optimization program. Net income attributed to Emeren Group LTD's common shareholders was $4.8 million, a significant rebound from net income of $0.4 million in Q2 2024 as well as a net loss of $9.4 million in Q3 2023.

我們的營運費用為 350 萬美元，低於 2024 年第二季的 640 萬美元和 2023 年第三季的 960 萬美元。歸屬於 Emeren Group LTD 普通股股東的淨利潤為 480 萬美元，較 2024 年第二季的 40 萬美元淨利潤以及 2023 年第三季的 940 萬美元淨虧損大幅反彈。

Diluted net income attributed to Emeren Group LTD's common shareholders per ADS was $0.09 compared to diluted net income of $0.01 in Q2 2024 and diluted net loss of $0.17 in Q3 2023. Cash used in operating activity was $5.6 million. Cash used in investing activity was $4.2 million and cash used in financing activity was $2 million.

每份ADS 歸屬於Emeren Group LTD 普通股股東的稀釋淨利為0.09 美元，而2024 年第二季的稀釋淨利為0.01 美元，2023 年第三季的稀釋淨虧損為0.17 美元。現金為560 萬美元。投資活動使用的現金為 420 萬美元，融資活動使用的現金為 200 萬美元。

Moving to the balance sheet. Cash and cash equivalents at the end of Q3 2024 were $35.8 million compared to $50.8 million in Q2 2024. Our debt-to-asset ratio at the end of Q3 2024 was 10.18% compared to 10.22% at the end of Q2 2024.

轉向資產負債表。 2024 年第三季末的現金和現金等價物為3,580 萬美元，而2024 年第二季末為5,080 萬美元。為10.22%。

Shifting gears to our outlook. For Q4, we anticipate revenue between $40 million and $45 million with a project gross margin of 20% to 25%, in line with the strategic move from sale to IPP for the 52.4 megawatt Hungary projects and the revised timing of some project sales.

改變我們的展望。對於第四季度，我們預計收入在 4,000 萬至 4,500 萬美元之間，專案毛利率為 20% 至 25%，這符合匈牙利 52.4 兆瓦專案從銷售到 IPP 的策略轉變以及部分專案銷售時間的修改。

We have adjusted our full-year revenue guidance to a range of $97 million to $102 million with an expected gross margin of approximately 30%. We do expect to achieve EBITDA of $15 million to $20 million in 2024. Our IPP and DSA segment are demonstrating solid progress.

我們已將全年營收指引調整至 9,700 萬美元至 1.02 億美元之間，預計毛利率約為 30%。我們預計到 2024 年將實現 EBITDA 1500 萬至 2000 萬美元。

For 2024, we reaffirm our expectation for IPP revenue to be between $24 million and $26 million, with gross margin of around 50%. We expect our DSA to contribute more than $20 million in revenue during 2024 by maintaining a disciplined approach to cost efficiency and operational excellence.

對於 2024 年，我們重申對 IPP 收入的預期為 2,400 萬至 2,600 萬美元，毛利率約為 50%。我們預計，透過維持嚴格的成本效率和卓越營運方法，我們的 DSA 在 2024 年將貢獻超過 2000 萬美元的收入。

We remain focused on advancing our renewable energy initiative and capture new opportunities for sustainable value creation. In 2025, EBITDA contributions from the IPP and DSA segment are expected to exceed $50 million. With that, let's open up the call for any questions.

我們仍然專注於推進再生能源計劃，並抓住創造永續價值的新機會。到 2025 年，IPP 和 DSA 部門的 EBITDA 貢獻預計將超過 5,000 萬美元。就這樣，讓我們打開電話詢問任何問題。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) Philip Shen, Roth Capital Partners.

（操作員說明）Philip Shen，Roth Capital Partners。

Hi, everyone. Thanks for taking my questions. First one is on the election results. We have a red sweep officially now and the Inflation Reduction Act could be changed. So I was wondering, you just signed a DSA in the US with a partner in the US and I was wondering if you have any automatic adjusters. Or how are you accounting for this potential risk to the ITC as you try to sign more DSAs in the states? Thanks.

大家好。感謝您回答我的問題。第一個是關於選舉結果。我們現在正式進行了紅色掃蕩，《減少通貨膨脹法案》可能會被修改。所以我想知道，你們剛剛在美國與美國的合作夥伴簽署了 DSA，我想知道你們是否有自動調節器。或者，當您嘗試在各州簽署更多 DSA 時，您如何應對 ITC 的潛在風險？謝謝。

It's a very good question. In fact, we do have plans for this election results. And our action in the US or the whole team's practice remains unchanged. We see that all the changes -- potential upcoming changes will cause significant negative -- will have a significant negative impact, especially to upstream but to the downstream, we believe we do have time to execute our available DSAs and the contracts to be negotiated.

這是一個非常好的問題。事實上，我們對這次選舉結果確實有計劃。而我們在美國的行動或整個團隊的做法保持不變。我們看到所有的變化——潛在的即將發生的變化將造成重大的負面影響——都會產生重大的負面影響，特別是對上游，但對下游，我們相信我們確實有時間執行可用的DSA 和待談判的合約。

And the DSAs we just signed in California, including one very near-term project, which will be executed starting early next year. In our humble opinion, we don't think that will be much impacted and others will continue the development path. And I think if it's an impact to the whole industry, our portfolio will remain valuable in the whole development process.

我們剛剛在加州簽署了 DSA，其中包括一個近期項目，將於明年初開始執行。以我們的愚見，我們認為這不會受到太大影響，其他人將繼續發展道路。我認為，如果這對整個產業產生影響，我們的產品組合將在整個開發過程中保持價值。

Okay. Yumin, in terms of the potential changes, we published on Monday that the base 30% ITC may require domestic content just to get to 30%. So if that kind of change happens, have you factored that into your planning?

好的。 Yumin，就潛在的變化而言，我們週一發布了 30% 的基礎 ITC 可能需要國內含量才能達到 30%。那麼，如果發生這種變化，您是否已將其納入您的計劃中？

In fact, after we signed the DSA, the development risk has been passed to the investor. Although we are planning ahead with our partner/investor to face the upcoming challenges but at this time, I think we have a good handle for it, especially we do see the significant downside or the price cut from the CapEx side.

事實上，我們簽署DSA後，開發風險就已經轉嫁給了投資者。儘管我們正在與合作夥伴/投資者一起提前計劃應對即將到來的挑戰，但目前，我認為我們已經很好地應對了，特別是我們確實看到了資本支出方面的重大下行或降價。

Okay.

好的。

And I will say we mentioned this DSA is related to the storage space. So the investors are looking at, again, the pricing arbitrage, they are not depending on the credit at this moment.

我想說的是，我們提到這個 DSA 與儲存空間有關。因此，投資人再次關注定價套利，他們目前並不依賴信用。

Okay. So your battery DSA does not require the ITC?

好的。那麼你們的電池 DSA 不需要 ITC 嗎？

It does require ITC.

它確實需要 ITC。

Okay. So if the ITC requires domestic content, do you think you have the ability to meet domestic content for that battery solution?

好的。那麼如果ITC要求國產化，你們認為你們有能力滿足該電池解決方案的國產化要求嗎？

We are actively seeking solutions to prepare for this challenge. At this time, we are working on it.

我們正在積極尋求解決方案，為應對這項挑戰做好準備。目前，我們正在努力。

Yeah. And ultimately, we don't know the details yet, and we're still very early. Okay. So let's shift gears to the revenue mix for Q3, those projects that were pushed out into Q4. I think Yumin you said that you expect that these projects should get approved in Q4. What is the risk that these delays sustain?

是的。最終，我們還不知道細節，而且還為時過早。好的。因此，讓我們把目光轉向第三季的收入組合，那些被推遲到第四季的項目。我想 Yumin 您說過您預計這些項目應該在第四季獲得批准。這些延誤會帶來什麼風險？

I will give you one small example that -- I don't know if you remember that over 12 months ago, about 14 months ago, we closed the deal in Spain, 29 megawatt solar farm we sold to a party. And we forecasted the deal will be finally closed by the end of this year.

我會給你一個小例子──我不知道你是否還記得12個多月前，大約14個月前，我們在西班牙完成了一筆交易，我們把29兆瓦的太陽能發電場賣給了一個團體。我們預計該交易將在今年年底最終完成。

But unfortunately, after 14 months, we are still waiting. Although we do have received just last week, the positive news that the final approval is to be expected as early as within this month, but the holiday season is coming. So we do expect the most likely the closing will happen in Q1 next year.

但不幸的是，14個月過去了，我們仍在等待。雖然上週我們確實收到了預計最早在本月內獲得最終批准的積極消息，但假期即將到來。因此，我們預計最有可能在明年第一季完成交割。

So this is one example that the extended delay of more than 14 months or 15 months drag along the whole closing of the projects. And that's one example. And also we have other three projects. We received approvals in the last two weeks, but we need time to get the final use permit, which takes about six to eight weeks. If we are lucky, we can get them done by the end of the year.

這是一個例子，拖延超過14個月或15個月，拖累了整個計畫的結束。這就是一個例子。我們還有其他三個項目。我們在過去兩週內收到了批准，但我們需要時間才能獲得最終使用許可證，大約需要六到八週的時間。如果幸運的話，我們可以在今年年底前完成它們。

If not, it has to be pushed into January. So those are the examples that the extremely long approval process was never expected by the management team and the local team. So that's the reason.

如果沒有的話，就必須延到一月。這些都是管理團隊和當地團隊從未預料到的極其漫長的審批流程的例子。這就是原因。

Okay. So I understand. And so when we look at your 2025 guidance, do you think you have factored enough conservatism into your guidance? So have you increased the conservatism for this guide relative to maybe 1 year ago or 6 months ago?

好的。所以我明白了。因此，當我們審視您的 2025 年指導方針時，您認為您的指導意見中考慮了足夠的保守主義因素嗎？那麼，相對於 1 年前或 6 個月前，您是否增加了本指南的保守性？

Yes. Phil, again, when we're talking about the EBITDA for next year over $50 million. Again, we're looking at IPP or DSA business model only because those two are very predictable. And our IPP business is very stable and growing steadily. So we're confident that will be around $18 million to $20 million EBITDA next year.

是的。 Phil，當我們談論明年超過 5000 萬美元的 EBITDA 時。同樣，我們考慮 IPP 或 DSA 商業模式只是因為這兩種模式非常可預測。我們的IPP業務非常穩定且穩定成長。因此，我們有信心明年的 EBITDA 約為 1800 萬至 2000 萬美元。

And we're looking at our DSA contract. We're looking at all the milestone going to happen in 2025, we're very confident the rest of them will come from the DSA business model we're talking about, like the contract is $69 million and the potential to be signed another $100 million. So we're very conservative in terms of the rest of DSA contribution of EBITDA in 2025. So we believe that's very conservative.

我們正在研究我們的 DSA 合約。我們正在考慮 2025 年將發生的所有里程碑，我們非常有信心其餘的將來自我們正在談論的 DSA 商業模式，例如合約價值 6900 萬美元，並且有可能再簽署 100 美元百萬。因此，就 2025 年 EBITDA 中 DSA 的其餘貢獻而言，我們非常保守。

Okay. Thank you. In terms of the $50 million, what percentage is IPP versus DSA for '25?

好的。謝謝。就 25 年的 5000 萬美元而言，IPP 與 DSA 的百分比是多少？

Like I said, $50 million around, I would say, $18 million to $20 million is from IPP. Rest of it will be DSA.

就像我說的，大約 5000 萬美元，我想說，1800 萬到 2000 萬美元來自 IPP。其餘部分將是 DSA。

Okay. And then -- so let's say it's $20 million for IPP and then --

好的。然後——假設 IPP 的投資額為 2000 萬美元，然後——

$30 million.

3000萬美元。

$30 million for DSA. And what percentage of that $30 million is US versus Europe?

3000 萬美元用於 DSA。與歐洲相比，這 3000 萬美元中美國所佔的比例是多少？

About 90% of the whole total is coming from Europe and only a little bit less than 10% from US

大約90%的總量來自歐洲，只有不到10%來自美國

Okay. Great. Okay. As the US goes through changes, I think that mix focus on Europe is good. Great. Well, thank you for taking many questions. I'll pause here and pass it on.

好的。偉大的。好的。隨著美國經歷變化，我認為對歐洲的混合關注是好的。偉大的。好的，謝謝您提出很多問題。我會在這裡暫停並繼續下去。

Thank you, Phil.

謝謝你，菲爾。

(Operator Instructions) I am not showing any further questions in the queue. I'd like to turn the conference back to Mr. Liu for any closing remarks.

（操作員說明）我不會在隊列中顯示任何其他問題。我想請劉先生致閉幕詞。

Okay. Thank you, operator. The global shift towards renewable energy is fueling strong momentum in the solar industry, positioning solar and battery storage as a key component of the future energy mix. The demand for solar power to support energy-intensive technologies like AI and blockchain is especially promising as solar provides a scalable cost-effective solution.

好的。謝謝你，接線生。全球向再生能源的轉變正在推動太陽能產業的強勁發展勢頭，將太陽能和電池儲存定位為未來能源結構的關鍵組成部分。由於太陽能提供了一種可擴展且具有成本效益的解決方案，因此支援人工智慧和區塊鏈等能源密集型技術的太陽能需求尤其有希望。

Looking ahead, we are well positioned to capitalize on the accelerating adoption of the solar technology. With our expertise, strategic partnerships and strong financial foundation, we are advancing towards our goal of becoming a global leader in renewable energy and excited to drive a more sustainable future.

展望未來，我們處於有利地位，可以利用太陽能技術的加速採用。憑藉我們的專業知識、策略合作夥伴關係和強大的財務基礎，我們正在朝著成為再生能源全球領導者的目標邁進，並為推動更永續的未來而感到興奮。

Thank you, again, for joining our call today. You may now disconnect. Thank you and have a great day.

再次感謝您今天加入我們的電話會議。您現在可以斷開連線。謝謝您，祝您有美好的一天。

Thank you, operator.

謝謝你，接線生。