Canadian Solar (CSIQ) 22 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's Third Quarter 2022 Earnings Conference Call. My name is Melissa, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.

conference recorded this replay reminder, a is for being purposes. As the now at to like would call Canadian to Director I Relations turn over Investor Isabel Solar. Zhang, go Please ahead.

quarter welcome, Canadian Thank everyone, Melissa, call. and Solar's you, third XXXX conference to

conference have available which website, the on We section. Presentations Relations are Events Investor call, and accompany Solar's slides to within provided today's Canadian

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

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

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

and solar margin, in Thank performance joining headline provides turn our solidifying today. strong Please of focus achieved to per ESG, Profitability our position you, results slide net We Energy key Isabel. both income our in metrics. and driving quarter leadership gross diluted XX% XX.X% profitable slide and CSI to everyone. on Welcome, Hi, for of This meaningfully year-over-year summary us of and a the The improved revenue growth, continued we businesses growth. $X.XX thanks as Global XXXX. X. share. third for

since QX COVID. strongest board of one beginning Our quarters the our across team and made executed the of

and Yan, performance Huifeng As more in our always, through go Ismael will detail.

turn X. Please highlight some key me Slide let to that, messages. Before

battery and storage development Global battery progress and our First, we made in significant Energy's storage utility-scale business all battery product CSI our across storage verticals. includes fees. Solar's our project This teams residential

a we for utility-scale healthy the supply seeing few be agreement. engagement months demand new of we Our Yesterday, launched underscores announced multiyear position. our ago. to level the applications, with very CSI continue products pleased This are we hour Solar side, our SolBank X.X and of which a we competitive gigawatt storage favorable

We move I'm to with customer storage this pleased This in pipeline CSI very we sales. will Solar's we residential forward. provide and for the a multiyear was during positive updates the as also the our be continue our US, contracted for energy the showcased to RE+ product, conference EPQ. response to expect contributor

battery made of storage Our XX strong progress global pipeline CSI storage of the growth Global gigawatt energy continued reaching by end Project. one the the hour that you business. our see to supported with very become clearly driver I'm competing team X.X Crimson that to world significant the gigawatt project battery team energy take team, in pleased back, you has report in very the hour our When for can at Energy QX. a expand storage storage step largest a

solutions, of Our us. storage opportunity excited about battery customers growth are we the and behind of about [indiscernible] are the excited

customers that in of chain. across investing core the our clean service our Reduction the provided there. and in one countries Act strongly passing other believe are and lessons as manufacturing important decarbonize supply the our most mind, planning attractive fight the US markets, climate remain Second, the and committed US the important market world. in of we US in against the We have domestic on US Inflation we in remains change. and common will the of for energy are passengers one to the to solar With Efforts

in final Well, our expanded preparation and market US in are are we process. selection site many there fleet of the the have our challenges know now stages We well.

years XX proud of are leadership. We of market our

domestic customers expand build in of and the our further upon support record US our in confident activity. even and are ability with the manufacturing US planned to level partners the our to long-term track We

a registration the please China to Lastly, track the turn next on of is and is Regulatory CSI the Commission. IPO back awaiting Solar's path After slide. the completion short with Securities procedural carve-out

ahead. working track process With to please has complete to next Yan let on the on Solar over we go the who will that, CSI turn our than or me initially now year. QX and within are While carve provide business. details expected, taken out in QX longer Yan, we

to to QX, Please quarter-over-quarter shipments billion slide Shawn. of $XXX doubled $X to Total factors the was to Solar XXX six. gigawatts and absolute megawatt-hour importantly, close This projects. standpoint, in In our delivered six to you, solar continued which our division from shipments own margin and storage reaching turn reached improved XXX gross XX.X% points improve an revenue Thank Several battery performance. megawatt-hour year-over-year XXX million. contributed were our QX. basis module of to of up and CSI

and the an our cell capacity and remained manufacturing a our cost ingot, the costs from increased declined integration First, wafer, supply in higher we in expanded control, further costs upstream control profitability. led line previously This costs our is improve QX of controlling chain. greater strategy QX. been vertical with our what degree in And and We've input over by while outlined. is job contribution with great able to a a within we structure did headwind and

polysilicon as fact, flat even was than average pricing X. you the previous and on elevated remained levels Slide quarter, see at In or can higher slightly

mostly down weeks. polysilicon expect input to reached We was we peak, over improvement may come believe finally the costs start prices and have next So organic. the a few

next until see really a year. probably benefit Although won't we

gradually. strength come demand, input in end market the we believe still costs Given down will only

a US revenues. relative to relative dollar from of part gross margin costs to fluctuations benefited our our dollar, With of strong by being in a costs large our led the our large depreciated RMB. part currency revenues to the Second, our RMB US relative

markets other currencies in was most aggregate on partially weakness ASPs by lower were the had Net-net, our dollar. relative our which the non-USD offset an revenue this all number. sequentially, However, US the to impact of

costs Third, down shipping came in unit QX. further

down, we We believe to levels. and there costs times. than not believe And room there started to to structurally we logistics selling impact we're for still is and note are in for come above is margin higher improvement As costs there Please which QX. expenses. are pre-COVID is see room recorded before, normal that said historical distribution do logistics given further logistic no costs significant that gross reason in

of our operating top which and of Slide to a X. combined turn our drive QX profit environment. factors market the CSI to despite of business helped for the quarter record brand year-over-year All Solar, of Please resilience a million. $XX tripling these showed strength was our

the significant technology our latest front, TOPCon progress making on we're On N-Type cell technology.

use lines, production. As pilot you we've N-Type believe will covering our and know, technology. the we're Heterojunction adding TOPCon TOPCon therefore, capacity cell And the on mass technologies. We both of for new several working been is now right all time

we our developed ability customers' costs start efficiency power to today. TOPCon similar also products best-in-class power current to due to electricity. and will mainstream will It contribute believe higher next for to approximately The will of points positively will manufacturing the be mainstream be to product lower early for wattage levelized though higher. than first accretive of percentage in pricing year. cost be our be our margin the once average our TOPCon We market have Meanwhile, is its X.X was product conversion TOPCon the production. even our product, delivered growth is much to

shipments. N-type expect to XX% We solar slide Please roughly for X. cell TOPCon of turn products our XXXX to module account

of battery hours. of gigawatt target track storage, year terms to full our X.X In on we're X.X achieve to

long-term and the us for market Our growth agreement new visibility geographies, significant signed just with from product. is recently under US We've more supply beyond also market expanding expansion. with expanding This a multiyear been into We our offering UK, over X.X US China, with SolBank significant years. traction customers. gives product gaining two across hour or currently markets utility-scale SolBank UBS gigawatt with one more our Canada the

key end helps nearly security CSI cell QX. than strong our battery our which pipeline With more ensure battery partnerships competitive XX of turnkey storage advantages gigawatt our quarter-over-quarter, customers. of for that, upstream of our long-term One hour as doubled the of Solar's at globally supply with is producers,

storage certain pipeline viewed should storage value creation And, While storage by and teams development pipelines the global projects the this provided services two energy distinct pipeline, therefore, two overlap separate. the be and independently. with are in

positive, EP residential shipments already US of is the was market to during the one are best, from the easiest market. product the Cube the EP On products initial We're in RE+ Cube customers underway. confident conference reception the overwhelmingly install to that and the

believe about and highly product will excited residential it are be solution. this We competitive

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

XX. the a us. Thanks, which relatively slide to XXX around turn with a for turn In highly Brazil, which in XX. gross projects were lower We profitability. we stage XX% meant revenues of we margin, making I'm in preconstruction revenue profitable completion $XXX achieved in mostly project QX, megawatts slide Please to of. had million two and which at Please Recently, milestones, and major higher proud projects, earlier US incredibly Yan. quarter sold this Japan,

The the and a is restrictions, first landmark We which standalone in California, project storage shipping affected COVID a schedules in battery gigawatt stringent of led our Crimson commercial hours, environment project this one the project very operation to delays. project. X.X of completed challenging

However, XX% power allow the synergies monetized project the and of a we grid storage which we We the storage will with provide energy long-term ownership. the grid the local colleagues investment retained partner closely long-term and will to created Crimson provide maintenance battery to among reliability to XX% divisions. our CSI energy. California Solar to continue the and The is services project project a operations clean to Meanwhile, absorb more plant. of fruition, bring business critical testament to this a cooperated our of

through expanding turn this the believe growth also trading which our in to energy Please be are XX. will future. area Slide capability We of project, key in a we

most major JPY The the current rates, Japan, plant. kilowatt in Kofuji project flagship making other project to XXX-megawatt Azuma hour power of on under based US$X.XX The projects. exchange XX the other one world's of completion operation commercial the FIT, equivalent our roughly project it is is solar per valuable

executing not Canadian proud complex most the solar world. is Canadian unparalleled Solar. fully storage to and the contribute the which of uniqueness, track will but battery earthquake project was record still I'm two economy, the and to devastated that meaningfully local project the across projects, in I in to what projects highlight However, This Solar's by owned is reinvigorate community by these emphasize show XXXX.

our projects Azuma And projects one have develop platforms. more battery solar Crimson is storage of largest development more to We the world's Kofuji. strongest like and like and goal

XX. Slide to Turning

the As we of gigawatts pipeline total had total and storage This battery project XX the of September is gigawatts in pipeline a of battery and world. a solar pipeline XXXX, XX solar XX, hours. largest storage

our That around solar and which pipeline notice growth. Importantly, of future total interconnection said, half confidence our value create of quarter-over-quarter. significant gives has ability to secured, also pipeline declined you'll that our us slightly

As and pipeline than quality are you more the building. Canadian is we profitability We of know, size. the Solar just prioritize

We we that less are decide return walk with attractive to move of not we ahead are risk on with afraid from projects selective the projects away and profile.

of and important shows the Specifically, results have adverse the platform. inflation recovered through the to invested quarters It strong of to grow [ph] is backdrop, interest in environment delivered our rates high geographies. Please assets with fundamentals. some that strong the past which in to invest high over certain turn geographies few stronger Energy's residence stage capital performance of related Global world-class we challenging combination Slide XX. set we and the note and early and Thus, to in

of increase to strategy our Lastly, the share income on remains recurring track.

O&M agreements. strategy, O&M now manage or gigawatts operational over long-term projects of X.X we maintenance under and operations the On

reach soon. us in both in storage, continue grow gigawatts and an additional solar battery this will we to largest commercial and We business. of world, also one of project the operations expected operators contracted makes projects This the have to X.X

We to minority we ownership will in assets also retain that developed. continue

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

volume. guidance from XX. to sales. increase shipping net to strength up lower expenses and Gross year-over-year. to relative in the manufacturing margin from Please our the delivered In foreign was margin in sequentially, XX.X%, QX the up exchange XX.X%. X% benefit benefited higher of Ismael. turn well currencies ahead US you, $X.XX higher slide and distribution XX% shipping most from of due we billion dollar to were a primarily costs, Thank XX% revenue, expenses other QX, Selling project of

as due change was $XX quarter. interest the expect million, by $X by generated was benefit US to million a in conveying net million, was million which $XXX quarter to income exchange General strong The However, up and aged Net $XX and $X The net duty compared prior by a and we gain currencies, was derivative mainly antidumping decreased, in relative and to R&D. of The primarily, million expense related interest QX. driven unit a to manufacturing most from million coming and to Canadian interest and mainly income effect of is dollar was income we net interest but million. $XX other onetime the net in the attributable driven shipping variance a impairment shareholders the in EPS the due received $XX of of a $X.XX. costs benefit $XX dilutive further base outstanding EPS decreases assets. refunds. Solar diluted notes. to to primarily The expenses million, nonrecurring was adjustment translates certain This the quarters. convertible Total of deposit administrative third $X.XX for of income, increased foreign our

and the turning Now, cash flow balance to sheet.

months approximately QX, the approximately of nine for was please. CapEx making $XXX million, In XXXX. slide, the first Next net payment it $XXX million

from $X billion well to our prior long-term nearly increased XX% excluding times debt X.X the X.X restrict at million but changes note, of rather the expectations that expansion net growth. last this times continued capacity year. of with to and pace these decline from year $X.X share Given XX% trailing not remain balance total $XXX We quarter EBITDA, to any time was IPO the this ended reducing QX to million. CapEx future a a to our line but projects, debt $XXX and large quarter. our imply months in the we debt from delay does full an the Total adjustment in cash billion, XX of to of are unchanged the capture projects. to process, positioned cash time XXXX implementation this Please

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

Huifeng. Thanks,

Let's turn to slide XX.

costs billion partially reductions. For expect manufacturing Gross quarter This revenue between to the in be import $X.X fourth total to expected the from be in benefit of $X.X XXXX, to elevated cost we the of QX, billion. XX%. by XX% margin range reflects offset is to

recognized X a may in projects. margin. be our pricing foreign volatility by exchange gigawatts, solar Solar through approximately expected of for to XXX range own QX, CSI and including are Continued in module megawatt Also X.X affect to revenue shipment

Solar's the shipment year hours, X.X storage XXX-megawatt in For own X.X XXXX, to are of projects. Global of battery approximately to the CSI to full hour total company's range be project be sales the gigawatt. of gigawatt we including to in expect through the range X.X energy expected X.X

guideline shipment We introducing next are for solar also module year.

in at partners differentiates All solar of in for and Canadian and lasting such This value that, I XX one long-term continuing is create in products Solar's key to shareholders. key building our questions. our continue our our now growth is competitive strategic our our year-over-year growth, like we for can shipments XX what storage to investing XX% innovation. control of which strategy to to driver technology the equity Operator? to in in areas, and your on positioning we're we focus the at module and for be all, gigawatts, range customers midpoint. on of long-term would to With growth leading our a differentiators represents of expect open brand worldwide. which call deployment prioritize value or the XXXX, as approximately the profitable battery to For mode business is

your of question this time we'll be with Please session. conducting At Goldman with Lee Thank comes [Operator question. question-and-answer from Instructions] Sachs. you. a the line Our Brian first proceed

logistics, I in you gross margins, trending direction. of the of for that all polysilicon, for had guidance a decline. little implies Hey, a couple the Huifeng, that is I costs, guidance. sounded guys. right QX bit sequential the guess just like taking Thanks mentioned around sort the questions. input It of Shawn,

to kind changing little we trends into XXXX, through what the how a of decline the margin bit that sort should So into fourth the walk translating early quarter? specifically of what thinking gross also margin quarter-on-quarter of us on a then And you is drive line? about you're could part of expect

Brian, that higher than our -- I gross our like would QX margin is I'd mention all, of guidance. like QX to margin guidance first gross to

However, we for XX% and guided to achieved margin did XX.X% XX% we QX. a wonderful, spectacular we QX, gross now

our than of to terms guiding guidance. is QX our I wanted just our guidance, mention that. are forecast, we in higher So actually QX

would I more Now Yan like provide right? to color,

it's Yan. Brian, Hey,

in manufacturing terms to QX. is talking I price of less that QX margin, and yes, costs, First all, minus not -- growth anything want I of net mean, about I'm say gross than

So that is there's believe -- do a more we It's not expect stable. level of example, gain -- like for for QX. similar we currency

So that's one of that.

to want Shawn, have more comments? So

that take though, that's question Well, the more come pricing module where topic, time, I mentioned maybe like your that in offline into a think, you first pieces. through dive on think while the that your about we'll lower in a I sort as of on moving I XXXX? your little module helpful prices you same Can can as as modules? quoting and XQ activity? view commentary on you what's And And bit. they kind ASPs ASPs color. well Maybe talk into down have look Are is of to well. starting

Yeah.

from So Brian, significant. minor is see some any but There some it's reduction, not not do our to stable markets, We we see for price might actually, comparing some customers, be order reduction ASP quite QX. for QX, to in some QX. QX material

already a next In terms of orders signing of year. lot we're XXXX, for

orders, is some significant. reduction but it's on not it price than long-term It's what We lower or also $X.XX today. $X.XX see some

price and into in So moving be still longer more forward, the period. But we moderate transition to moving XXXX, current going price believe it's situation. smooth the the production that's

still – So, we end rapidly. the the that market know all is is growing as for that, do reason we

the investors So capacity ingot a now affordability with end and in fact the to on that, the stronger high also capacity. than add market combined more – the on cost has the right CSIQ silicon

next price year. moving on there's we certain believe, So resistance the into reduction

death that's so do pricing, So, to not anticipate sudden on happen. any not we going

euro more local actually that, to little Japanese bit not really comment by some Brian, lesser even measured Chinese I example, maybe by moving currency, are a and one add for In dollar ASP RMB the declining. become up. US cases want and yen price the deploys is

is facing However, situation US we dollar a strong. that very are

at look you if looks when it going down. going it dollar, US up, So even is prices like

price up. – stable cost local going even is of Some quite and

And on markets, market know, we're can US – our of margins Brian, year always improve particularly we're has we electricity capacity. we've going And of our in high-priced tolerance quite as And always price the expanding getting that We're volume the much, strong. talent and moving gone channel be next retail because Yeah. to our is year. in been And that top you strong we're obviously, we channel-wise, strong the strong. still so quite demand DG next And shipping developed market. price more – that, up stronger half we're in given is actually that have into very confident from been channel. markets, experiencing

going So, be a confident it's for year quite good us. to we're that,

appreciate Okay. the pass on. That's helpful. plans. I me, great. it one around US the Super manufacturing and thoughts for updated Last I'll

had you module looking recently about think just I at capacity. talked

you it time facility? more us building a scale more Are you dollars maybe us have you detail. the it? be What you a So, give could a and XXXX, Would can still production be on putting would would behind kind funding thinking line? CapEx you. if XXXX? give then And of be you of and module-only of or Thank in would just bit strategy the sense

Okay.

a guidance know, gigawatts for have -- -- we guidance. for to volume you shipment XX guidance, next So year, as sorry, of guidance XXXX our XX capacity-wise, that's

internal of wafer to year. this So, are end of wafer we'll to so year, XX of gigawatts XX and capacity, support gigawatt actually in this -- year-end and also have XX we and we CapEx -- ingot cell by gigawatts that. have of And terms of module

going TOPCon on Moving into of cell. more add year, we're to next capacity

year is cell total to production next be So, going XX, XX-gigawatt.

XX XX, output. in cell terms of capacity Sorry,

gigawatts. terms it's of output, In XX XX,

XX-gigawatt So, of we're have to than ingot and wafer. more going

can the capacity. over course of X-gigawatt that more Thailand expansion capacity the and module more of of -- also next includes we And be module. of will XX-gigawatt cell get year, So,

capacity So, we're guidance. cell to going purchase around cell our have X of like with gigawatt X, We, volume support some purchasing. to enough of course,

So, that's investment. already we started CapEx-wise, the capacity plan. we're in process of And the actually --

sorry. specifically in So, was well -- I okay, the US just wondering, as of--

in team up strike can viability, The the -- and time, assessing But process to we X-gigawatt details site our policy-wise well the as plan set the in of on that process cell. have we of also and selection. of actually the the wafer, stream same DOC. at US. upper capacity. support of clarifying US, site a economic We we're with actively long-term-wise But a capacity in on module such ingot, the as we're still, IRA lot secure

So, process. it's running changing

So, on we execution, phases. on may execute in module side

So, is the plan. this

Okay. Thank it you. on. I'll pass

support. a we down lot of support, payment CapEx-wise, we on have helps. customer Yes, also customer have And a

Thank question you. your Capital Roth comes question. Our Partners. Instructions] line proceed next [Operator from Please of Shen the with with Philip

questions. my taking for Thanks everyone. Hi

was more XXXX, do is one mid-XXXX. plans? your maybe know some in QX the how could you about What's your And bit going? the timing IPO the that is and plant of a of expect guys you I in on might online wondering on IPO expansion development if the color I addition deck capacity talked to to China. that, First that. poly to update tied the be Thanks. how on by bring still in little but give of you

this you want address to Huifeng, question? do

Phil. Hi, Sure.

our first pause that process. Let short talk procedural in me IPO what about

its the reviewing IPO result, on documents its they information. status exchange XX, awaiting status XX, application changed CSI our website, a the in with change Shanghai submitted financial So the stock has changed submitted financial update to our Stock as also in message on early back October. of the to request on And the we And October September information information. And pause IPO after on to the and updated registration. Solar website, stock exchange our

we So since any not are more then, requests. receiving

application our back on So track. is

that is weeks. So four like process about

at And don't why details much same general, a COVID hard in and our this have our But in inside the yes, the on office. on is Now management, harder behind the I clear than managing slower to for due But the expectation. deliver to process answer point, business travels. focus know it restriction the results. it's to better because case, we government is

that. over the are Now CSRC, XX answer in there statistics. before the share us. our And of listing with If status. there called Also, starboard let wait some news There is application also for status companies is We from IPO. the that submitted same just good with deadline is that companies you actually, pause are for there question me more there. us applying are registration. in one-third XX And we

continue we business So JV you. listed. and to registration the many and company the for meanwhile, wait Thank of completion the for make better

Shawn hey, -- And ahead. Huifeng. Thanks, go Great.

yes. project. tied about Hi, you The Phil, So IPO as questions big a is And that investment also our is asked in the answered is last the answer proceeds. Polysilicon schedule we to call. of the the polysilicon project and then earnings whether

will the our IPO. complete proceed only with polysilicon project we We after

In Shawn. your… Thanks, Okay.

module capacity project, to more cells projects I secure. other or the capacity, other not will other In say new less that the wafer, IPO capacity and financing even for really the tied

to really the not IPO. tied So

to I that that. gigawatts XX. XXXX? have details Great. to what your for expansion follow-up a Thanks wafer quick of could was XX We for to if and detail, wondering CapEx Shawn. module share cell on expectations ingot the gigawatts would And of you for be XX

if could guidance, that XXXX then shipment wondering sales expectations I if XXXX could project and that as also battery So you shipments was you for share And you give for gave helpful? be would Thanks. CapEx, well?

Phil. Hi,

the We CapEx plan. are still working on

will to such as be injection, IPO. tied the some cash of flow particular said, the As capital I projects in

XXXX the less at or the said, release call. is the same to module as cell the planning expansion And secured. earnings capacity in and we're but So CapEx more and estimate time, -- CapEx I March

know, we customer So Solar also, the we -- world. distributed the will -- Canadian like around as now diversified has so conservative you that always and also, been strong -- very and have

also and capacity still without expansion, are So expand our target reach to cells margin to from even polysilicon, level. today's confident heavy we the gross volume

Great. Thanks.

here. me for one Another

In terms into -- break per your how could and much in do be in you know it of do you maybe dollars if either QX I go it's How And QX. expect then Thanks. of next QX I cost watt? you year? How in freight much out was or to cents was wondering freight, expected to lower. absolute

QX -- down. So than less Phil, about is in QX, it's $X.XXX $X.XX. about and it's It's coming

our So estimate. that's

-- leverage Thank have? much operating the the fantastic? OpEx Great. the from both Can over trajectory do that EBITDA trajectory, you you One speak next you Yan. one. EBITDA think and you, be to talk you And maybe about and here how Thanks. what few To would degree last if can OpEx years?

Huifeng, do question? this to want address you

is selling and The OpEx number the changed. driven cost, shipping other The cost. big part by the

but I up slightly low -- will because as our the if around numbers, coming become they analysis, going OpEx we of be of total It it somewhere ramp we do think size teen. well So the larger But the team the other the decline. will increased revenue, slashed by capacity. as quarters, to

I’ll much. very on. it pass you Thank Great.

the [Operator Rusch proceed question. with your you. Our of Colin line question Please from Instructions] next Thank comes with Oppenheimer.

scale storage the little utility bit you're curious Thanks, given the for trend, the talk Guys, seeing market you how a about side? the the in energy Just so much. dynamics that pricing can backlog? growth in

repeat can Colin, you Hi. your question?

Sure.

seeing pipeline, well markets in grade we've and Given the growth energy the strong market? in the as the in seen the scale of you're talk utility you pricing what as given yes, terms can growth what utility pricing, in storage about strong given dynamics the -- moves

the carbonate Yes. account affected price the the cost you carbon is Unfortunately, and this EV carbonate than more the And EV because -- more lithium this is only or storage, the lithium by as storage the less determined the XX% the especially lithium pricing -- storage is rather by the for of the price. XX%. know, is and still usage

even you the more more of is than that price lithium price talk dynamics, unfortunately, activities determined about EV recently, by general carbonate the up, by if because of the -- the So or that's but and storage. more pricing moving less

have is and service shortage on secured strength secured -- is of capability. it's actually capacity so in providing somehow pricing the much a a because, in And -- for that's Yes. Colin, shortage project not it's turnkey now those supply service, arrangements. comment And projects and and the deposit more long-term on one market we're control demanded actually with back-to-back signing, is, our we're the -- we the which

So this on profit service pricing. we a better bargaining additional but pricing. the the us equipment power just have service, it's actually on also, not And control turnkey service revenue have long-term more on to on and help

markets. we US in So -- would the the this markets, the have especially -- is European be we in and achieved

and customer wind, and Yan requires although, is comment energy to and storage with solar strong, demand continues the is also because it's you agree and product, all demand want that, higher solid the growing with be up, market more pricing the know. as that's is more also the customer itself I price to more -- going

power bargaining help pipeline on us on Yes. such actually And of pipeline, one probably growing given pipeline our the in world, a chain. the rapidly our biggest the and supply is

secured multiyear a So, successfully suppliers our supply our pipeline. with with have agreement we

so Obviously, talk bit projects you're position can the that queue projects of need the But about the guys. point? and to. your talk -- interconnection the approved And about those this the at at things of position interconnection in you US? those rate little the a at Thanks, queues that can those through they magnitude move seeing order rate in much you which move get through

question? address No. Ismael, want do this Do you that? you get to

not in are equipment, reasonable experiencing past, frame for a months. time in we ration To the order question, to Thanks especially of the general, to an high-voltage times US, six longer lead Shawn. in magnitude, transformers. the the of was due the you give is nine Sure, in Look, only what interconnections but Colin. general,

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guys. so helpful much. I’ll it that’s Yeah, Thanks, there.

Solar's for to the time, closing Thank to I'd comments. Canadian At back like turn floor you. CEO, this

you joining support. for Thank us for your continued today and

questions any Investor all hope you please to have contact Relationship have would up I Thanksgiving a if take care. As you team. or set always, our like a holiday great call, and

concludes This you. Thank today's conference call.

your Thank this you may your You for at time. lines disconnect participation.