TOYO Co., Ltd (TOYO) 2024 Q4 法說會逐字稿

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the TOYO full-year 2024 fiscal results call. (Operator Instructions)

感謝您的支持。我叫蒂娜，今天我將擔任您的會議主持人。現在，我歡迎大家參加 TOYO 2024 年全年財務業績電話會議。（操作員指示）

I would now like to turn the call over to Crocker Coulson, Investor Relations. Please go ahead.

現在我想將電話轉給投資人關係部門的 Crocker Coulson。請繼續。

Thank you, Tina. Hello, everyone and thank you for joining us to review TOYO's second-half and full-year 2024 results. The earnings press release with those results should be posted on PR Newswire momentarily. And we also have a investor presentation that's been updated that you can find at our investor website at investors.toyo-solar.com. With me on the call today are Mr. Junsei Ryu, TOYO's Founder and Chief Executive Officer; Raymond Chung, TOYO's Chief Financial Officer; and as well Simon Shi, President of TOYO.

謝謝你，蒂娜。大家好，感謝您與我們一起回顧 TOYO 2024 年下半年和全年業績。包含這些結果的收益新聞稿將立即在 PR Newswire 上發布。我們還有一份已更新的投資者演示文稿，您可以在我們的投資者網站 investors.toyo-solar.com 上找到。今天與我一起參加電話會議的還有 TOYO 創辦人兼執行長 Junsei Ryu 先生； TOYO 財務長 Raymond Chung；以及 TOYO 公司總裁 Simon Shi。

After the prepared remarks are concluded, we're going to open up this call to your questions. But before we begin, some statements in this teleconference are forward-looking within the meaning of federal securities laws. Although we believe these statements are reasonable, we can provide no insurance that they will prove to be accurate because they are prospective in nature.

準備好的發言結束後，我們將開始回答大家的提問。但在開始之前，我們需要指出的是，本次電話會議中的某些聲明在聯邦證券法的意義上具有前瞻性。儘管我們相信這些陳述是合理的，但我們無法保證它們的準確性，因為它們本質上是前瞻性的。

Actual results could differ materially from those we discuss today. We also encourage you to review the company's annual report on Form 20-F that will be filed and other SEC filings to see risk factors that could materially impact our results. As I mentioned, the earnings release will shortly be available on the IR section of toyo-solar.com.

實際結果可能與我們今天討論的結果有重大差異。我們也鼓勵您查看公司將提交的 20-F 表格年度報告和其他 SEC 文件，以了解可能對我們的業績產生重大影響的風險因素。正如我所提到的，收益報告將很快在 toyo-solar.com 的 IR 部分上發布。

Now, with those formalities out of the way, it's my pleasure to turn this call over to Mr. Junsei Ryu, Chief Executive Officer; Sachiko Katori of AUM will be transiting for Mr. Ryu. Ryu-san, please go ahead.

現在，這些手續都辦完了，我很高興將這個電話轉給首席執行官 Junsei Ryu 先生； AUM 的 Sachiko Katori 將擔任 Ryu 先生的過渡職務。竜桑，請繼續。

Thank you, Crocker. Good morning, everyone. We're glad that you had joined us, from here, by USA, Japanese.

謝謝你，克羅克。大家早安。我們很高興您能加入我們，來自美國、日本。

(interpreted) We closed fiscal year 2024 with $177 million in revenue, representing 184% year-on-year increase. Despite the strong top-line growth, our margins were adversely affected by the imposition of anti-dumping and countervailing duties by the US Department of Commerce and the International Trade Commission. These regulatory actions disrupted our delivery times and pricing models, resulting in compressed margins.

(翻譯) 2024 財年結束時，我們的營收為 1.77 億美元，年增 184%。儘管營業收入成長強勁，但我們的利潤率受到美國商務部和國際貿易委員會徵收反傾銷稅和反補貼稅的不利影響。這些監管行動擾亂了我們的交貨時間和定價模式，導致利潤率下降。

Nonetheless, we have remained committed to our long-term vision. A key milestone was successful commissioning of our 2-gigawatt solar cell facility in Ethiopia, which is now partly operational. Driven by strong customer demand, we have decided to strategically scale operations and double our production capacity to 4 gigawatts by the end of August 2025.

儘管如此，我們仍然致力於我們的長期願景。一個重要的里程碑是我們在衣索比亞的 2 千兆瓦太陽能電池設施成功調試，目前該設施已部分投入營運。在強勁的客戶需求的推動下，我們決定策略性地擴大營運規模，到2025年8月底將生產能力翻一番，達到4千兆瓦。

Despite industry challenges, we advanced strategies to strengthen resilience and fuel growth. We redirected our Vietnam cell factory to serve high-growth non-US markets. Our sales team has done a great job developing these new markets in short order. In Vietnam, we anticipate selling 1.5 gigawatts over 2-gigawatt nameplate capacity to non-US markets with the primary focus on India and Taiwan.

儘管面臨產業挑戰，我們仍採取了增強韌性和促進成長的策略。我們將越南電池工廠重新定位，以服務高成長的非美國市場。我們的銷售團隊在短時間內出色地開發了這些新市場。在越南，我們預計將向美國以外市場銷售 1.5 千兆瓦，超過 2 千兆瓦的額定容量，主要集中在印度和台灣。

Our Ethiopia expansion has helped offset tariffs and enhance global competitiveness with our 2025 capacity already allocated. Bringing our Ethiopia solar cell factory online with advanced automation in just six months, is a powerful testament to the strength and agility of TOYO's team.

我們在衣索比亞的擴張有助於抵消關稅，並提高全球競爭力，我們已經分配了 2025 年的產能。我們在衣索比亞太陽能電池工廠僅用六個月就實現了先進的自動化投產，有力地證明了 TOYO 團隊的實力和敏捷性。

Our 2-gigawatt solar cell facility in Ethiopia is operating smoothly with over 80 megawatts scheduled for customer delivery by the end of April 2025. We are on track to ramp up to a full monthly production capacity of 150 to 200 megawatts by May to June 2025. This facility represents a critical asset in our global expansion strategy, strengthening our ability to meet growing demand, maintain margin discipline, and build deeper, longer-term customer relationships.

我們在衣索比亞的 2 千兆瓦太陽能電池工廠運作順利，計劃於 2025 年 4 月底向客戶交付超過 80 兆瓦的電力。我們預計在 2025 年 5 月至 6 月將每月產能提升至 150 至 200 兆瓦。該工廠是我們全球擴張策略中一項重要的資產，增強了我們滿足不斷增長的需求、維持利潤紀律以及建立更深層次、更長期的客戶關係的能力。

The initial 2-gigawatt capacity in Ethiopia is already fully allocated. Given the strong order momentum, we're swiftly executing a second 2-gigawatt expansion at our site. This next phase positions us to capitalize on sustained customer demand and further enhance our competitive positioning in the global solar supply chain.

埃塞俄比亞最初的2千兆瓦容量已經全部分配。鑑於訂單勢頭強勁，我們正在迅速實施第二次 2 千兆瓦的擴建。下一階段，我們將利用持續的客戶需求，進一步增強我們在全球太陽能供應鏈中的競爭地位。

In the US, our Houston metropolitan area solar module plant is on track to commence production by mid-2025 with strong customer interest. Our diversified supply chain gives us a strong edge in a robust US utility market. We're accelerating our manufacturing expansion to deepen our long-term commitment to the US market.

在美國，我們位於休士頓大都會區的太陽能電池組件工廠預計將於 2025 年中期開始生產，並受到客戶的強烈關注。我們多樣化的供應鏈使我們在強勁的美國公用事業市場中佔據了強大的優勢。我們正在加速製造業擴張，以深化對美國市場的長期承諾。

While recent US tariff shifts have disrupted the market landscape, our confidence remains unwavering. We have the talent, technology, and strategy to meet the rising demand of the US solar market head on.

儘管近期美國關稅變化擾亂了市場格局，但我們的信心依然堅定不移。我們擁有人才、技術和策略來滿足美國太陽能市場不斷增長的需求。

I will now turn the call over to our Chief Financial Officer, Raymond Chung.

現在我將電話轉給我們的財務長 Raymond Chung。

Thank you, Ryu-san. I will review our second-half and full-year 2024 financial highlights before we take your questions.

謝謝你，Ryu-san。在回答您的問題之前，我將回顧我們 2024 年下半年和全年的財務亮點。

So in terms of TOYO's financial update, in the second half of financial year 2024, we delivered 758 megawatts of solar cells. In terms of revenues, we generated $38.9 million in the second half of 2024, a decrease of 37.7% from $62.4 million for the second half of 2023. The decrease was primarily due to the impact of antidumping and countervailing duties and customer adjustments to focus on non-US customers.

因此，就 TOYO 的財務更新而言，在 2024 財年下半年，我們交付了 758 兆瓦的太陽能電池。就收入而言，我們在 2024 年下半年創造了 3,890 萬美元的收入，比 2023 年下半年的 6,240 萬美元下降了 37.7%。下降主要是由於反傾銷和反補貼稅的影響以及客戶調整以專注於非美國客戶。

Our cost of revenue was $43.6 million for the second half of 2024, which decreased 4.6% compared to $45.7 million for the second half of 2023. Total operating expenses increased to $8.5 million for the second half of 2024 from $2.9 million for the second half of 2023. Net income was $21.3 million for the second half of 2024 compared to a net income of $11.8 million for the second half of 2023.

2024 年下半年我們的收入成本為 4,360 萬美元，與 2023 年下半年的 4,570 萬美元相比下降了 4.6%。總營運費用從 2023 年下半年的 290 萬美元增至 2024 年下半年的 850 萬美元。2024 年下半年淨收入為 2,130 萬美元，而 2023 年下半年淨收入為 1,180 萬美元。

Next, I would like to go through full-year 2024 results. Our revenue were $177 million in fiscal year 2024 compared to $62.4 million in 2023. The increase was primarily driven by the completion of the pilot production phase in the second half of 2023 and the ramp-up of sales order as commercial production accelerate.

接下來，我想介紹一下 2024 年全年業績。我們 2024 財年的營收為 1.77 億美元，而 2023 年的營收為 6,240 萬美元。成長主要得益於 2023 年下半年試生產階段的完成以及隨著商業化生產加速而導致的銷售訂單的增加。

Our cost of revenue was $155.1 million in fiscal year 2024 compared to $45.7 million in fiscal year 2023. Gross profit was $21.9 million in fiscal year 2024 compared to $16.6 million in fiscal year 2023. Gross profit margin was 12.1% (sic - see slide 26, "12.4%") in fiscal year 2024 compared to 26.7% in 2023.

2024 財年我們的營收成本為 1.551 億美元，而 2023 財年為 4,570 萬美元。2024 財年的毛利為 2,190 萬美元，而 2023 財年的毛利為 1,660 萬美元。2024 財年的毛利率為 12.1%（原文如此 - 參見投影片 26，「12.4%」），而 2023 年為 26.7%。

The decrease in gross profit margin was related to the customer adjustment made in the second half of 2024 to mitigate risk from AD/CVD to non-US end customers with lower average selling price as well as the impact of reduced capacity utilization in Vietnam in the period of market adjustment.

毛利率下降與2024年下半年進行的客戶調整有關，以減輕對平均售價較低的非美國終端客戶的反傾銷/反補貼稅風險，以及市場調整期間越南產能利用率下降的影響。

Operating expenses were $12.7 million in fiscal year 2024 compared to $4.7 million in fiscal year 2023, representing an increase of 172.7% year over year due to expenses related to listing and land and plant lease expenses in the US and Ethiopia.

2024 財年的營運費用為 1,270 萬美元，而 2023 財年的營運費用為 470 萬美元，年增 172.7%，原因是與美國和衣索比亞的上市相關費用以及土地和工廠租賃費用。

Net income was $40.9 million in fiscal year 2024 compared to our net income of $9.9 million in the prior year. Net income in fiscal year 2024 included a $35.1 million change in fair value of contingent consideration payable for 13 million earn-out shares. Earnings per share basic and diluted was $0.13 for fiscal year 2024 compared to earnings per share, basic and diluted of $0.24 for fiscal year 2023.

2024 財年的淨收入為 4,090 萬美元，而上一年的淨收入為 990 萬美元。2024 財年的淨收入包括 1,300 萬股獲利股票應付的或有對價的公允價值變動 3,510 萬美元。2024 財年每股基本收益和稀釋收益均為 0.13 美元，而 2023 財年每股基本收益和稀釋收益均為 0.24 美元。

As of December 31, 2024, we had $15.5 million in cash and restricted cash in total compared to $19 million as of December 31, 2023. In terms of guidance for 2024, with projected total shipment of approximately 3.5 gigawatts in 2025, we expect to generate $33 million in net income, driven by improved operational efficiency and our strong positioning as a market leader in the global solar industry.

截至 2024 年 12 月 31 日，我們的現金和受限現金總額為 1,550 萬美元，而截至 2023 年 12 月 31 日為 1,900 萬美元。就 2024 年的指引而言，預計 2025 年總出貨量約為 3.5 吉瓦，我們預計將產生 3,300 萬美元的淨收入，這得益於營運效率的提高以及我們作為全球太陽能產業市場領導者的強大地位。

Now, I will return it back to Ryu-san.

現在，我要把它還給龍先生。

(interpreted) As we navigate a challenging and dynamic global landscape, our strategic execution across key markets, Vietnam, Ethiopia, and the US underscores our ability to scale with precision, optimize profitability, and meet accelerating demand. With a fully committed order pipeline, operational momentum and a clear path to expand capacity, we are well positioned to deliver sustained growth and long-term value for our shareholders.

（解釋）當我們在充滿挑戰和動態的全球環境中前進時，我們在越南、埃塞俄比亞和美國等主要市場的戰略執行凸顯了我們精確擴大規模、優化盈利能力和滿足不斷增長的需求的能力。憑藉全力投入的訂單管道、營運動能以及清晰的產能擴張路徑，我們完全有能力為股東實現持續成長和長期價值。

In conclusion, we believe that TOYO is well positioned to serve the needs of the US utility scale solar market. Given our flexible global sourcing platform, track record of excellent performance and reliability and deep multiyear relationships with some of the most significant developers in the US market. 2024 tested the resilience and flexibility of our team and they came through with flying colors.

總之，我們相信 TOYO 完全有能力滿足美國公用事業規模太陽能市場的需求。鑑於我們靈活的全球採購平台、卓越的性能和可靠性記錄以及與美國市場上一些最重要的開發商建立的多年深厚合作關係。 2024 年考驗了我們團隊的韌性和靈活性，他們出色地完成了任務。

With that, we'll be happy to address your questions.

我們將很樂意解答您的問題。

(Operator Instructions) And we have no questions at this time. I will now turn the call back over to Mr. Ryu for closing remarks.

（操作員指示）我們目前沒有問題。現在我將把電話轉回給柳先生，請他作最後發言。

Operator, let's just give it one more chance for people to see if we get any questions.

接線員，我們再給大家一次機會看看我們是否有任何問題。

No problem. (Operator Instructions)

沒問題。（操作員指示）

Okay. Operator, do we still have any questions or none?

好的。接線員，我們還有其他問題嗎？還是沒有問題了？

There are no questions at this time.

目前沒有問題。

Okay. Just to let everyone know, the earnings press release, I believe, is out or will be out in the next few minutes. And we -- yeah, it is out. And so people want to have any follow-up calls with management after reviewing the earnings, please feel free to contact us and we'll be happy to arrange a follow-up call. Thank you.

好的。只是想讓大家知道，我相信收益新聞稿已經發布或將在接下來的幾分鐘內發布。而且我們——是的，它已經出來了。因此，如果有人想在審查收益後與管理層進行任何後續電話溝通，請隨時與我們聯繫，我們將很樂意安排後續電話溝通。謝謝。

So at this point, operator, I think that concludes the call and we want to thank everybody for their time.

接線員，我想這次通話到此結束，我們要感謝大家抽出時間。

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。

Thank you. Thank you, everyone.

謝謝。謝謝大家。

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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。