Canadian Solar (CSIQ) 18 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's Second Quarter 2022 Earnings Conference Call. My name is Sherry, and I will be your operator today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Isabel Zhang, Investor Relations Director at Canadian Solar. ahead. go Please

on and and XXXX operator, provided to Solar's website, are Canadian to Canadian well Thank Investor section. Solar's call. welcome, Please quarter Relations available which call, conference today's the have webcast note second as accompany as Events you, within conference everyone, the Presentations that slides we

will VP respectively the Ismael subsidiary, the and after go after Global this President businesses, On of Zhuang, conclude Solar Corporate which us are CSI we Huifeng financial of will Energy President the review Solar's and Joining have some Solar; Yan remarks CSI for of will today Shawn and Q&A outlook, Shawn the by executives the go remarks. for through over Dr. Energy. wholly-owned CEO; prepared Shawn participate and questions. Chang, will and VP Ismael with subsidiary, session time Senior Huifeng, Solar's the in results. formal the who Guerrero, All followed messages Qu, highlights call, majority-owned and CFO; key will Chairman quarter. Canadian management's Canadian will Yan company Global business

will the remind detailed principles well no management's are questions of A results the statements performance projections for required listeners GAAP. regarding Actual unless XX-F may projections SEC remarks estimate forward-looking report by accepted Form Securities uncertainties accounting contained today applicable risks prepared the and Act found presented of as future as Management's Exchange the and Any to be subject in Reform is future assumes Commission. current company's with more Harbor annual obligation represent that Safe update to or begin, these prepared generally we company's of risks can contain forward-looking the in Before of management claims differ XXXX. Canadian today. of otherwise law. Regulation of from company discussion as and expectations. the Private in G Litigation may Securities be management's the remarks the protection the I within filed to answers on requirements that their that will statements uncertainties. The Solar

as presented operational non-GAAP during ahead. substitute GAAP I measures call performance permit to Non-GAAP the further By non-GAAP accordance a provided information, disclosing financial to be with information in to should and intends of Qu. Shawn, Chairman viewed operating assess on underlying investors information becomes GAAP. information a call non-GAAP performance please prepared and the with will establish company's go for better trends. Management And Shawn basis. data CEO, Some Solar's management and to to by Canadian turn provide and a additional goals. not now analysis over Dr. the investors to be like certain would

Thank you today. joining us you, Isabel, hi, everyone. and for Welcome, and thank

CSIQ came let's record achieved to of US$X.X of gigawatts. shipment margin was Revenue slide turn gross XX%. in solar provides results We and quarter at performance module of strong for key a in XXXX second Now Slide our This the with metrics. X.X X. billion summary

Our the results guidance. our exceeded were at high end or of prior

over first half our major segment the cementing XXXX. in hour for storage took in shipment towards X the storage fast also leadership in battery moving step We -- of with of another gigawatt

and details. tenet shareholders in founding. our Huifeng through US$XX Canadian on we income its Solar achieved Solar go focused Yan, profitable of which a I since earnings report During will to growth the quarter, core QX attributable Canadian of pleased $X.XX. that to more performance am with of has diluted per million been net we share remained Ismael

me X. that, Page to Before turn let messages. Please key highlight three

on firmly our highlighted last as track. strategy, message, capacity is quarter growth First

which XX start ingot, is each capacity, reach We expect approximately production the upstream to and of XXXX. reach wafer are By in our gigawatts. capacities expanding our expected gigawatts end we cell strategy module to and polysilicon incorporate XXXX, XX to to capacity

plan the of capacity through XXXX. end We are also our introducing expansion

capacity module reach We ingot reach to wafer cell XX reach gigawatts, and to gigawatts. gigawatts, XX capacity capacity to expect XX and

We are magnitude planning and we ramps But the shipment still capacity planned growth for of beyond. the next expansion of significant you an growth year XXXX. should give finalizing are the indication for we're is The including energy security a rationale decarbonization. and multiple strategy is catalysts, demand. global growth in this more seeing acceleration clean economics, driven that for energy aggressive significant by This

Act, are unparalleled cost in global acceleration are For in drive over record. line now and is achieve believe our track Reduction or into polysilicon the our energy channels, this one we invest the to advantage. enhance we strategic opportunity defensive energy share established well. our clean customer is the in of further strong passing demand great one to an and capture to decade IRA large competitive that; critical. and made This with decision the example, excited We seeing We chain of are and see To the it is project storage, U.S. long-term supply strongest technology, pipeline, gain market control energy for why capacity to we in solar companies as Inflation believe will positioned battery we particularly significant Canadian a global And growth. of particular. brand Solar best U.S., in relationships

While a control our we will believing is decarbonization are ultimately to standpoint. chain we pricing critical still supply our security from believe directly competitiveness supply come and that long-term cost that down, polysilicon

X. this Now second point. my me brings to to turn Please Slide

second weeks Using position will in selected Of renewable [XX%] of the industry for energy province. as started the are approximately accounts located power energy chain. decarbonization operation front, supply evaluation. our facility leader. We our energy-intensive goals Qinghai part reflect our note, and most contribute which in to of Poly this an the new these poly manufacturing electricity several ingot This solar and will facility renewable ago. processes in careful our to be Province. Qinghai new this after Our be after location will ingot

reach milestone We operations expect drive XXX% entire in our energy power to important renewable as which our with to carbon will XXXX, neutrality. before an global serve

You our we our month, on of last which is published ESG environmental to format efforts our can which website. find in latest download and details available sustainability additional report,

we investment summary, The both to to the please our and on we’ll and team Regulatory The management somewhat, strong X. CSRC. be progress Slide as Commission, of turn we timing business the on pace long and update subsidiary. China in term. the timing investment Now of the We IPO move Securities In process CSI Board process are reflects Solar see immediate achieved with linked time of capital-intensive you in or been delayed is this case carve-out confident but registration we and our the remain this will forward. making has over

now me to please Yan, Solar Yan, turn who business. our CSI go Let will ahead. over more provide details on

are were the to sequentially battery XXX of million. turn a XX.X% X. In QX, storage gross X.X to Solar profitability all $X.X us. of hour reasons improved From for XX% by numbers record shipments There to Please performance. and shipments, Shawn. delivered $XXX you, revenue. Slide standpoint, These basis gigawatts billion Thank module up to margin CSI several solar or our megawatt points improved division of XXX

in higher-than-expected Demand higher from incredibly pricing. our been volumes markets benefited end the pricing. from strong has and we increase First, despite

to first This continue recall Second, achieve we was inventory during strategically control. our favorable. QX, pricing helped but more actively keeping polysilicon more our supply quarter while goods us in the to increased our we decision dynamic will support cost sold when that be we of chain. within will growth This difficult manage

manufacturing reduce continue to efforts costs. also We benefit our to processing ongoing from

Third, and to our also benefited U.S. other from was currencies relative the gross which the U.S. dollar. the RMB, to euro currency fluctuations strong relative led the by weaker dollar offset partially margin by

costs fleet lockdowns to a $XX Please come increase was continued higher Lastly, our but doubled down, in have China shipping up costs QX operating million. With expected. COVID X. QX. offset it shipping due went unit volumes, during sequentially inland turn logistic to temporary profit Overall, in Slide in total to as to by the

such going due the accident a up a of again Polysilicon So where the variety to we soon certain of has a impact these fire are We events. at normalize as today? plant. pricing polysilicon believe will of events impact been

few higher polysilicon residential and past in also summer certain have of to from the started energy power demand due output. hydroelectric we curtailment China see conditioning. the resources to temporarily low power parts This reduce days, heat will Over air wave, driving curtailment

Given the tightness, demand any marginal polysilicon affect pricing. changes supply or in will

Slide to demand we barring However, drive to polysilicon what of polysilicon imbalanced know as we any in shipping based more Please will costs infrastructure. and the to should shocks eventually be will also towards global meaningful Logistics polysilicon pricing. continue expansion a supply capacity believe turn decline QX improve, unexpected on today, X.

as storage, delivered mentioned, quarter. XXX we hour battery this Our megawatt Shawn

months. date, is to Our our over to remain hour for with X first year to largest gigawatt -- six full hours. on delivered X.X achieve We X.X our target of this gigawatt track quarter largest the

side, introduced positive ago, overwhelmingly feedback. the in received On and we a few proprietary utility-scale our product products China weeks

products global for utility be officially launch scale Our Solar next International at Power both our will residential and the Conference month.

the Besides our priority encourage delivery gives significant to products meet booth reasonable reliability product over us supply coming and to see cost partners I secure requirements, our for that work cost. itself. technologies product has years. at to you over deliverability customer to developing visit a quality, So our -- and with been This visibility

let please pass ahead. to for Energy me an go Now Ismael, it Ismael overview Global of on business. the

and gigawatt fully trust Solar. Yan. global projects to pipeline, delivered were significant equity shown hours, since and for late-stage XX. and gigawatts megawatts have XX growth both lead close was projects In XX of across in XXX% storage. performance projects in respectively, revenue, grateful This rates. in are the The more appreciate incredible our Please their partners pipeline as for Thank with I in this million battery japan projects. and all margin. project We turn solar on that slide. see happen, the sold hours Slide our to $XXX than also team contracted of this success an well with highest of banking gigawatt you, construction which plus X.X to gigawatts These and XX% Australia, backlog global approximately projects X.X Canadian gross we monetizing XXX earlier as our quarterly I'm power marks making stage UK, U.S., constructed in XXXX. QX, XX.X%

quality storage pipeline adjustment This the our quarter, better battery definitions. understand a making to development you of solar are our platform, global we help on small and

than pipeline we pipeline certainty out advanced We more are interconnection and have that pipeline previously pipeline. Advanced or have breaking of XX% early agreement. stage secured to projects called an what securing are

that of drivers reason we be contract The by key interconnection. to this of we While are the are be the stage is securing group still a advantage ability business. in developer's projects and believe are will pipeline network early in past, this our that controlled feeds. the Canadian owned for to access competitive the making used process of Solar one In to PPAs distinction

deployment of and However, a be with reliable of incremental success. sources key interconnection the geopolitical to of long-term a of events will growing ability uncertainties, our driver climate our higher electricity, points secure extreme incidence

project As give hours growth us developing significant XX.X the U.S. The of interconnection of X XX.X of has solar more solar of years globally. subsidiary passing gigawatt to particularly us of recurring of we This coming gigawatts we pipeline storage the runway in and and selective hours XX.X where for assets. a the storage in achieving points of quality QX, with our battery expansion in and gigawatts had the allow true total highest be gigawatt a energy pipeline. is are market

is growth magnitude and the will to too it help projects IRA, the pipeline. directly it Slide of benefit faster XX. Please the in quantify While both early impact our U.S. to overall our drive existing from turn

to us you to of line soon. had O&M and invested share we an our me growth additional X.X our In will recently projects over long-term maintenance X which Spain-based now to strategy, gigawatts stable recurring further progress strategy O&M on O&M manage COD increase Let income. a now a accelerate provider, the reach in under operational our projects We update with in across significant agreements and Europe. allow of on growth or our gigawatts expected of contracted operations

combination of and Our O&M platform bolt-on a opportunities will acquisitions. grow continue through organic to

XXXX. confidence All operation to gigawatts give XX by of execute this us under we of target our as

Now call let the will in over our detail. who through go me ahead. results please more financial to CFO, Huifeng, the go turn

margin XX% In our volume were development to primarily shipping a up contribution and XX. expenses impairment manufacturing $X.XX volume. gross sequentially, of with from a higher pricing, Thank expenses revenue associated Selling assets. you, inventory record by XX%, of and administrative on shipments Ismael. return due our QX exchange delivered higher due R&D and The to our of benefit General sales manufacturing which a million primarily $X our in billion, high Please relative foreign by Slide costs shipments to certain lower The million] and and by U.S. strong RMB. costs due aged nonrecurring increased to the Research quality [$XX was product timing higher quarterly sequentially was compared exceeding turn by dollar guidance. storage the the improvement the was XX% battery QX, derivative investments. gain QX. to was and net guidance. mainly driven also $X increases million to benefited QX The increased higher in expenses from margin a we and and sales. exceeded price combination module our distribution led of and both projects.

majority foreign our shareholders Total currency As in dollar, as you and of well costs RMB. million, to know, as million. U.S. our $XX was revenues attributable $XX most are the net the in income of Canadian was Solar net are income where our

numbers more upon approximately a carve-out become XX%. significant to in Canadian between will a reflect Solar. from decrease these subsidiary XX% IPO ownership This will in the the CSI of of Solar's Solar As CSI reminder, variance two completion

basic due $X.XX. our $X.XX and to is diluted dilutive of Moving achieved convertible EPS the effect adjustment primarily on for EPS. of outstanding of EPS The the to notes. We a variance

balance the cash to turning Now and flow sheet.

cash. around net the reduce first We in was Next increase $XXX base more than for to Despite allowed our inventory In half sales, operating $XXX in significant generated us CapEx we XXXX. please. QX inventory flat making accounts QX, quarter-over-quarter. and maintained $XXX of million mostly receivables, payment the slide, this approximately X/X. million million, by The our

this growth off cash the net trading of cash with We total months while projects project as net $X.XX XXXX $XXX spending from Total XX CapEx financial This billion, to powder unchanged our in the at changes of balance the which bulk be second that billion. quarter. prior of debt means X.Xx year. managing Our million, $X.X expect some in ended year the QX remain to with to opportunities restricted full at expectations debt-to-EBITDA, we largely X.Xx our long-term risks. invest sales. unchanged half declined us was mix roll giving a dry excluding

to Shawn, will outlook. me let our Shawn, and Now conclude business turn please the with call back ahead. who go guidance

Thanks, Huifeng.

now to Slide Let's turn XX.

billion. For the XXXX, the new vertical third total integration, expect our quarter and US$X of of reflecting we to the expected range XX% capacities. revenue in US$X.X from to positive level cell including contribution between group to increased billion is the wafer XX.X%, of margin Gross be ingot, be and

polysilicon expect costs. partially We by be this higher to offset

gigawatts, in in As for are recognized to revenue shipment X XXX-megawatt QX, of Solar by module own X.X to solar be expected CSI including project. our range the through approximately

battery sales due the shipment offset shipment storage module QX and higher by seasonality. to normal lower be expect We in project

expectation our billion. billion billion US$X US$X.X we billion previous $X from to For the full raised year $X.X of to revenue the XXXX, to

the sales of by year. increase driven full unchanged. remains solar module to to Global range to in range hour. of expect XX be volume XX to gigawatt gigawatt shipment to Solar, module. X.X is solar CSI Energy, and mainly Our in X.X battery system expect the trend in At year for X.X storage At be expectation revenue guidance sales pricing we gigawatt in project the X.X of the in we the higher-than-expected Thus, range

battery of barge by As profit, project going shipments. revenue driven mainly the we both seasonality to on the previously, of for is likely sales year quarter and be said QX highest

expect the shipments we execute up solar to quarter years ramp gain. steadily deliver and and market through share we persist. However, challenges Overall, as market module the

recent focus Canadian Reduction to the continue U.S. create fight that, our forefront Solar for long-term shareholders. With propel storage and continue the help positioned against in and success I capture for by in business, We drive combination market tailwinds, see attractive as climate our growth investments, significant both to will lasting passed we IRA Operator? to your call the We to change. profitable policy of believe value economics the of the a near like Inflation long-term opportunities This to battery such solar open Act. on questions. driven as and strongly is would will and

[Operator Instructions] Our with first Sachs. question comes Goldman from Brian Lee

I of appreciate know I all here. pieces the updates. lot there's a moving

handful I don't we've for ton -- of of a peers cases. the integrate Shawn, maybe you, big polysilicon. been first into the question your over seen a successful to think Asia just picture years So try there's in vertically is

burden let's you strategic to the think sense Solar structure a then numbers like you're what question will would different? this on perspective, you processing would of and a say, us Canadian So be poly? And look give kind using margin why once makes a fully your from and you What what be just costs decision? in, own your can cost module XXXX of

Brian, good that's question. a

like company would have And observation integrate poly of step the business. separate wafer, from then poly But haven't seems and seems That's be and so-called it doesn't be Now it effort you successful haven't In trend vertically value different why to to virtual to virtual companies module to ingot that success. that yet. kind to mean from the past, My and the seeing case integration. provide Most be example successful. going of chain. module view. observation vertical indeed, the solar side processing a cell a start integration of module, been you won't seen who my the seen why polysilicon, companies, not into that is that by is started. That's just is I poly your the who the

has for we the standard. have on which that factory the all, the produce current poly-only method method example, are for And poly, Therefore, there are of is years also China, different. a who is work now, certain watt the especially There chemical design a almost for cost the done refined the of the manufacturing, Siemens handful subcontract EPC in Siemens handles general production that process, of process, first visibility what standardized. that or for makers the is technology almost polysilicon and process, companies, become design poly. And high. the specified But wise, And part two in newcomers. is in investment is technology past, we from chemical the the to for institutes, feeling becomes per of standard -- side, everybody granular to study. Siemens engineering the the observed Now

technologically However, ever investment CapEx the since the of a view, technology of the from point cell. watt not XXXX, to from of dropped like per And into point cost -- part view, It's of therefore, of something poly cost investment level same accessible. anymore. forbidden poly a also has -- solar is cost

quite come As fact, capacity a matter speak. newcomers we online, of a there their as are and few

or efforts new So ramp see the months, to newcomers nine in their next enough facility. up commerce six months we’ll so-called

ramp So by of will we lots we experience. the time up, have

can we build we -- asked we strategically see we have lot And have can to -- me We can previous reference have -- also, we lots you of that. why experience to.

In -- new the the because getting new is to installation into gigawatt. XXX this Now range we is XXX past, of era. solar the annual say in solar is into a

major me have about -- globally Right XXXX the -- we to terawatt achieve will I solar by the They X -- I'm believe next is passed you also years, global the report installation Agency. installation the seeing in IEA the in total Renewable to will neutral. IRENA now, would I both to shows terawatt, grow International are and of we solar mention think, of -- Energy that report. countries accumulated the installation -- say. However, XX,XXX carbon just it the XX for order installation. IRENA it that require to let are like accumulated new level, XX,XXX total mark. believe, globally talking report we annual significantly let's

this polysilicon. growth. So time, With chain of supply on especially lot happen the the of there is will a bottleneck all still kind growth,

believe we have to one control. feel So like major solar have top X the as we company, of module we

understand to have We the poly.

flexibility we of to we control ramp to. have right? we -- mean produce we But have will certain and Brian. poly. We we certain the poly, Thanks, it have use, poly the to produce doesn't in have the will the will but up future all if So

CapEx more balance give to you I of you poly, for maybe kind question. capacity -- all 'XX higher. us given the going know new a expansion the is plus the sense CapEx guess substantially be sort of numbers-related talk is another It same. I just for like Can preliminary the Can 'XX, about high seems And how burden. guess a of cash funding you guys? not CapEx But of the in free the will I 'XX years in where you've you be much from that? we here. CapEx next then seems flow budgeting with generating got should like come may good be for the couple it cash

So I the then you're there. ballpark? for this? is And guess, two the for where questions CapEx funding planning what's 'XX, that

question. Huifeng? Thanks, like Huifeng Brian. answer to this I would

Hi, Brian, Huifeng. this is

Before about for what in reflect is I XXXX, CapEx happening XXXX. me let talk

budgeted same, we for this year. on confirm this million remain $XXX call, $XXX So restate the we this million. or And the CapEx year CapEx

in million. we about Now QX, $XXX spent QX,

especially and is for be that QX. And in ingot number mainly QX cell. and that million wafer So the $XXX for of QX, pulling, major will capacity capEx expansion, spent part our

some course, pace of polysilicon the of for this spend is the year waiting And our we of previously. are very for project, because this the the IPO. for one is Now as But completion factor we money of still we construction announced little. registration

module expansion? will from expect stage. this we And dovetail then in with planning accelerate still we XXXX, early polysilicon we That project. are the starting how this in the investment So done IPO that the our Exactly year.

after I give of question. we to the and hope you. come IPO. completion end answers our So also that the year close we update Thank when will of your

that's... Brian, Now

debt with be I considered there or And enough. funding, Fair on equity Or here? going guess the the is all additional being IPO? some it to is

the our need account every bank financed -- $XX so can to $XX local all, be with take only other and from the we CapEx, the banks. of $XXX First

big number, So the one. a CapEx sounds it

However, have $X our cell. capacity of to billion project. expansion for the cash, fund polysilicon enough about consider have pulling, excluding wafer expansion the I mean we ingot we still and

we funding have that, the prepared. For

polysilicon different of the story, pace the IPO. for very depend Now a that much the project, will that's on

question Shen next with from Our Capital is Philip Instructions] ROTH Partners. [Operator

wafer as Continuing share capacity and theme, to with amount passage or see us you the as just expansion how What happen CapEx the kind of And much could also perhaps module? bring bring you if timing around to the details cell capacity can the spend of want then with that of capacity might Reduction of U.S.? when of location through the you wanted these you facilities? you talk Would well to could and inflation Act, could would it capital be?

Philip. Hi,

First say of signed days ago. to all, the the just law want I IRA three into that

haven't So of it's a huge document and gone yet. we through all

will comments. ask don't more And I concrete it. we provide yet, we to a Yan but have understand Yan? plan So

the status. you Yes, forward are Shawn, on also assessing told said cost and and both the and the risks have Well, actively the benefit side -- this we moving numbers on yes, uncertainties topic. him study,

know, you situation. the have monitor As U.S. people the have we actively been in

start mentioned. blank, as but a you So complex -- from Shawn it's is not as has know, quite that we'll this document

plan, the few weeks. to this in going come our a with deal to with think strategy up I we're

just wave might higher. with Poly through talk to on. heat bit little shutdown, the electricity Okay. mentioned able with I a Shifting go that's going that you the looks be Yan, if pricing Thanks. you Sichuan like margins. now wondering it to was might

margin. guys You gave actually pretty QX healthy gross a

higher by shipping And -- so wanted of the lack pricing low-cost FX. that I offset and being guessing to I'm lower and going inventories poly

if through well and you QX us risk be the to guide margins So QX trend? to wanted you what as talk margin to do the QX expect might how see just could as

I QX, know, were the do you side it's quarters. high for future pretty provide supply confidence demand and faced because much as for fixed is the mean, on forecast a it's so margin not supply already. -- Well, both But we

taken already on side. cost downside events silicon consideration we of the So into the possible by recently causing happened the the

So mentioned, I on of I that recently already is for the rest resides But that of think the silicon. today events as year, uncertainties price seeing the temporary. we're I the think

moving balancing expansion will September, it in will think rational, -- I the the to industry. a in coming of and and reasonable, into supply and -- to reach silicon the continue flood I in more think

So now our as industry market price -- know, is is quite elastic. the you

extreme sort So comprising going to installation certain balancing. see I movement and don't of to the volume, a it's reach

So the guidance. considered all our we already possibilities on

last on number give us Okay. Huifeng, what that CapEx in you have you And mean, I to could I question. question to a not this mean million. me. just a the you and to it's or Back until make And $XXX 'XX $X $X are the then -- one about finalize clear China IPO? can situation 'XX and it's a decision plan? is poly I of rough the for with 'XX, expansion year billion success $X a number with billion that need roughly be, billion. very going does it mean,

Phil, that next on the I call. earnings think do let's

Oppenheimer Company. is & Instructions] Colin with Rusch [Operator from next Our question

got partial you've kind and derisking of the supply of integration. history Shawn, hedging through chain long

land but I side, as to we to a And like on are what aggressive the questions on queues, business. push grow so active expect positions I'm continue appreciate product about curious all side, you supply you things the into interconnection be and and that the pretty how demand given that

pipeline are and real where and into opportunities that into queue? in of terms converting curious that guys you getting the Just of some at

project, I I effort will please? right? about to question. for Ismael, Colin, asking our So ask Ismael you the Yes, our to think for are -- this answer secure -- the the interconnection

is COVID the question. the for that But Colin, keep successful that seeing these delays you, we Thank later Sure. mean all are things. sooner and are on the pretty confident our all is we growing. will projects. some lately Look, I due our to into are we pretty experiencing record good. or track What price pipeline we on turn

future have we think I great ahead. So a

how an yourself update us I then. detailed a you with in and curious on PPA project guess, there on Surely, the I'm getting Okay. movement prices with into and some I'll pressures, terms that then of pricing? and demand there's level? And whatnot. raising that position just give approaching at philosophically off-line you guys what's have are inflationary more ask going some on strategically, sustainable margin questions been can to

give little bit more…. can a Ismael

yourself? it Do you Yes. to want take

Well, it's a question for you.

Shawn. you, Thank

So protect and to and look, and rate seeing a in interest that bit like are contracts reflect us that. complicated terms things we drops the is what PPA provisions more inflation that little mainly are their getting from

are we now So we prices might fine the beginning the at ourselves the merchant PPAs -- period a contract year two we approach is -- of take where having are a markets high, are right have And very approach in on or putting go high PPA to merchant the what are we if the we we the too negotiate the taking. markets. for on years. terms is the the completing or later, those This

are So general. up. also keep we seeing market getting terms in PPAs is what we the And moving a in what seeing. getting bit to It's on short the termed. true what That's seeing are are happening is we adjusted little that that the PPAs are

PPAs. now years see XX to are XX We PPAs, years

seeing are more ones. XX We years much

Our comes from Wells with Praneeth Fargo. question final Satish

to support I your the expansion maybe providing question. in in one have that now for in at regions tax the is U.S. does just a Reduction plans versus really just all tied How the compare of more all do the here solar Act capacity U.S., that with manufacturing? change manufacturing Inflation two U.S. here building the that I to China? guess some you credits build lot the

capacity This the again supply U.S. once market. again actually is we to on plan expansion to future the are our Yan. Yes, reviewing

Thailand base lot going to to -- have a things. have costs meetings the making you the as team know, is document So Vietnam on IRA to huge of document. working things all benefits still and and to now details as And on sale U.S. we're just other the deep a we're of using with going ago, it's of we module the The and details. diving have the a calls with that and days judgment and risks we're and supply information And we'll And And that. many three clarify uncertainties. lot a the capacity. passed the through

as we've policy a for already. few -- the been U.S. know, monitoring So trends you years

us, service the And to we support the decision make the U.S. so try best to not better market and or in to shocking strange something to U.S. it's customers but our

Thank for you. back call over would the to comments. Shawn At time, Solar's this final to I CEO, Canadian Dr. closing Qu, turn like

us your And everyone, joining support. Thanks thanks, you. also Thank for continued today. for

our contact set any or care, team. have you day. nice questions Investor like please call, If a have and Relations would a Take to up

Thank does conclude you. This conference. today's

at lines and your time, participation. this for disconnect may You thank you your