Canadian Solar (CSIQ) 5 Dec 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's Third Quarter 2024 Earnings Conference Call. My name is Melissa, and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Wina Huang, Head of Investor Relations at Canadian Solar. Please go ahead.

on welcome, note Canadian is and that slides, are and XXXX Third accompanied Presentations operator, Relations which Call. Please Investor Conference today's available section. you, everyone, the Solar's to Quarter with website Thank within Solar's Events Canadian conference call

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

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

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

solar to tapered cyclical significant no the the challenges, solar. barriers, I remains. The year on fierce today. Please Wina, of to totaled shipped intense USD trade competition you competition X.X this quarter, the have the X.X evolution in with later, Nearly patent and competes experience continues low. November, factors billion for intense By to and gigawatts the market began history mean, price face quarter X.X Slide energy market outward third solutions. gigawatt internally These hours In joining ongoing of costs, evolution, geopolitical and pressures, turn margin Thank of a battery at Last thank a to most expansion. XX.X%. earnings we industry and we significant surpassed our industry guidance you, everyone third call storage a X. few. modules gross combined Revenues disputes, solar name in

expanding energy a resilience in storage as downturn the applications. test, that competitiveness every strengthening solutions, solar However, and serves their further of economics in improvements turn stress and company's drives

global AI ChatGPT, of discuss X launched years marking applications energy of broader Slide on let's applications, Speaking of ago, revolution. growing a and in OpenAI solar role X. the the storage beginning

the is higher or to centers and megawatts. AI there's also projected growing around consumption of high-energy XX% center are data energy around According from is the present demand from sized to size. average by to and XXX but McKinsey, from XXXX expand, beyond grow shows campuses only applications carbon market, associated in consumption individual will data in X% total X% data number, power data their exciting that emissions. States, centers As and the centers of pipeline growing a more. and to currently in challenges, But opportunities models at that. Data regarding particularly United not megawatts Research of BCG both XX they largest new center size

crucial annual XXXX. be of will generation cumulatively needs by solar year power. A spoke need terawatt achieve growing reached of Similarly, storage the also have for nearly both Today, terawatts. reaching I providing But to and will reliable energy and terawatts the carbon addressing of capacity. installations potential infrastructure, solar about global global AI energy installation in storage. gigawatt solar capacity Solar ago XXX we and exceeding with sustainable XX X to close hours is projected continue neutrality, rapidly, to the storage

early Solar are growth Solar is in positioned for Canadian still their stages, opportunities. and and long-term well storage these

operational new we be innovation growth, and a scale. differentiation It will As the Being X. era the leader more market to Slide means of than leadership. also into key. Please move turn just requires

one is recycling transparency, World's solar with our Through across our partnership core of testament on comprehensive collaboration, committed a time, our to named advancing delivering Most U.S. leadership the is ongoing world's a SOLARCYCLE be this commitment the offer to it high-quality trust to service when delivering our proud first prime business, manufacturers reliable the short sustainability. services we most Trustworthy sustainability supply, products. module global operations. list. is becomes Solar to Canadian is of crystalline trustworthy customers. In Companies to and sector recent and in of in to example to company At XXXX in a high-quality, our commitment energy utilities are recognition This Our and silicon Newsweek's

solar sectors across ensures we development of products technological in suite that and solutions. and remain and at research both storage of forefront in investment continuous energy the our Our the innovation

Finally, on American Page turn our update let me plans. you Please manufacturing to X.

for U.S. investments solar long-term making storage. energy both and the are in We

came facility module online solar Texas last year. late Our

adding We production up and lines volumes have ramping then. more the since been

expect by next We middle reach the year. of to full capacity

cell by end our we For facility operational of in solar the XXXX. be to Indiana, expect

also Kentucky. excited that this to subsidiary, be in with will We through packaging our kicking phases, battery are X project announce X state-of-art facility and off e-STORAGE, year. Phase Shelbyville, we built will module cell in a build manufacturing This

the in factory more management be phase double sourced phase capacity installed battery will be invest able in-house plan to and second of ready we energy to build meet facility. With requirements. products projects system, be will the first Shelbyville phase our the in our than of XXXX. domestic annually. management the system a of invest thermal storage nationwide production Once fall completed, capacity million U.S. to We we The hours to a X is gigawatt $XXX first into built in by will content to

confident While this is meet Governor's the ambitious to community, timeline, ability thanks in are talented the Shelbyville support our an Office we of it, workforce. our to and

Yan, will to United decision, more R&D, American plans Texas, States. billion and and are Following XX Canadian across business. of years details to Solar strong to helping X,XXX local With role more call economies that, global will our anniversary. employ we CSI than $X will foster and please manufacturing. With committed in play Canadian ahead. than These American have contributing nearly now in Solar Indiana span people manufacturing, jobs to Kentucky. on with its more the a our celebrated month, Solar storage proud to Yan, experience, I turn engineering Last manufacturing manufacturing, manufacturing who manufacturing XXrd presence will the a revitalizing over provide go

Slide shipped of gigawatts a modules. $X.X In of third million. gross billion and generated of CSI income revenue delivered the We Thank of an you, Shawn. Please XXXX, turn $XXX to we margin XX.X%. of X. operating Solar X.X quarter achieved

to while disruptions continued resulted profitability profit-first meet year, market execute the faced our the to Europe minor softened second Demand This due shipment the that logistics, criteria. quarter, half lower volumes our strategy, of than guided. China initially in orders prioritizing large in in which we

between in strong accounting on loss-making sustainable the the North industry, by are our trade-off increase, to American evidenced we and continued and Shipments as growth However, natural volume market generally achieving recognize to the performance focused XX% were key drivers marking energy storage in the shipments in hours, our highs total These shipments to while contribution. reached new X.X of quarter gigawatt X third profit contributors for performance. quarter, both over profitability. third volume and

in the and technology Upstream the costs half on Canadian slower The first face market of costs has supply stabilizing, increasingly Moving Slide standard. strong at With the than become and albeit below a year. pace industry those power the to to outperformance, TOPCon ASPs while solar seen pressure. PERC decline, to now significant of turn continue continues module Please market X. are Solar to chain.

prudent sledgehammer on namely and remain focus levels, reaching strategy, rather in our investments continue strategic other than production approach. those a capacity Shawn also R&D, plants. high actively As seeing invest more In not demands mass term, in surgical States. we emerging the TOPCon we're only near technologies. Today, go-to-market cell TOPCon a mentioned current to earlier, the manufacturing but The efficiencies in optimizing at market We in XX.X%. environment will our our as United areas, as

a of have third grown business. X.X Now the globally. now recognition, shipments $X.X revenue November billion Despite record to XX. Slide gigawatt our turn shipments achieved to Please hours to record we we of of quota e-STORAGE large In our backlog X. quarter, the as and

We markets contract established by continue presence expanding while to our into also as emerging in solidify Chile. demonstrated in regions, inaugural our

XX-foot Huatacondo This e-STORAGE exceptional management safety, offers we battery cells X.X. Chile and the performance liquid featuring an for cooling megawatt innovative the system it proprietary environments. design and other battery delivering advanced Its costs. are also an and use projects, ideal LFP solution, protection high-density system The For hours SolBank global management demanding capacity latest and land IPXX thermal per with solution SolBank optimizes X.X system. boosts compact of reduces and rating, X container making

XX. global Kingdom United the and our like to XX Canada, very what we energy storage only by integrated commercialization, is United Slide e-STORAGE is Despite services. top few deliver advantage? markets our hold the market. consistent a in e-STORAGE competitive of already differentiated turn In and years a market to strong solutions player ability is So Please shares. the comprehensive States, key

costs systems, and factors, reliability the most are the consideration. significant being cost DC primary often safety, For with

of players and need upstream set knowledge, on grid the AC the the in factors, services balanced to downstream. with risk one and more. more including solutions, environment, spanning both customers a depends be long-term receive. We're expertise local few services consistency today's geopolitical effective of of success integration, management, In and reliability system long-term confident For also they

technological side, implementation, differentiated and complete operational capabilities. management side in further build guarantees across driving We channels our upstream leadership can long-term value. firmly the experience Downstream, and global long-term offer while parent we R&D, we our service differentiation, control. supply committed On company to strengthening leverage remain cost to and sustainable

will on the final, play outcome review. serve definitive a duty cash final still U.S. We I to process the the of and fair will committed to basis made. the determination once decade is a over actively domestic would in both and administrative briefly U.S. are estimates the deposits. as annual in we manufacturer. even note during like be as equitable Finally, as The part market, well market, importer would determined and of and address our versed proceedings. legal rates engage to pursuing antidumping countervailing in important a and continue these rulings experience With company-by-company an to is the that ongoing remain It

Now, Energy, turn Canadian please of who let Solar's business. Ismael, call me to an Ismael, project the Recurrent go development global overview provide will ahead. over

Thank to Slide you, XX. turn Yan. Please

project with certain delayed next an have were year. of $XX reported loss Third the under sales build-to-hold still been with quarter projects $XX pressure. project margin and into the financials and million. quarter of a XX% absence will significant near-term and as gross million In next P&L in We experience of construction, revenue, operating modest sales

our operating disciplined However, performance. to optimize we'll remain expenses in managing our financial

of transformation announced a an investment providing capital This needed important business with accelerate partial BlackRock. This $XXX million from marks milestone, successfully us quarter, previously closed our to we towards IPP model. the the the

under earlier of the projects We hours construction Spain history of the an XXX on of capacity construction This with to solar peak number successfully our in the development gigawatt X.X and managing This in largest includes the megawatts approximately additional capacity BESS builds execution Italy, of business. capacity, solar are currently and solar gigawatt of we along X peak year. in U.S. operation under commercial brought projects XXX megawatts of this of

one revenue agreements recurring As example. streams. Please such turn predictable XX part long-term model transformation, are establish to of Slide our we for securing competitive business offtake to

homes agreements capacity, County, We collectively to X of XX-year This X,XXX projects Papago APS. hour megawatt Arizona and online These a trend more homes storage particularly in of demand, experiencing broader standalone in favorable solar regions energy have under hours construction power the U.S., with reflecting volatile Public with significantly earlier, In expanded XXX our are Bloom is covering XX,XXX demand. storage observing Solar and as to partnership in agreements, megawatts X,XXX-megawatt Service, XX,XXX XXXX. have mentioned energy solar. be driving and a X hours Papago the storage largest Desert annually currently with we operational, energy with for the energy state. and scheduled Storage storage Arizona. Notably, or prices, market and Once pricing. Notably, cover tolling approximately Shawn in includes toward declining in Storage Conversely, Storage, storage the Maricopa facility is prices standalone a Europe, have entire come interconnections dynamics. in surge is energy markets. been Energy Papago project high across different will projects AI enough

renewable the Our solutions this across key X.X signed differentiator date, companies in U.S., us gigawatts contracted To space any leading including is demand the Japan world, the we for footprint, and we energy regions, Australia. Europe, of technology approximately which with extensive many to have which positions around several global our meet have growing geography. in

one Our growth. Please drives strong counterparties sign that ability long-term the with long-term to to factors Slide contracts XX. is turn our of

usually are now to project X taking mature and overwhelmed that development comes the in permitting on of and one and gigawatt of while clearly under huge interconnection It our more to energy depending coming business, confident which delays while receive. The longer, of number to country storage be solar to continue applies includes quarters, as takes depending mainly than by and the XX construction online. plants XX X project future now connecting X months next about capacity. and operators takes take waiting they projects projects. a largest and are have storage process, planning on on backlog our X one size pipelines year. to were we challenges we the are Building the given in The power on is to are dependent massive solar now The coming we gigawatts permitting. Overall, early growth most to due years are construction operational, XX total to cycle according of take operators We and delays and depending XX applies volume interconnections a PV project. the plant of to on process to government during to our pipeline grid months years battery not volume maintain agencies hours bottlenecks at is within country, and the queues around start years XX in-construction the X that industry, the gigawatts to of for standing secured, X permitting the the the in gigawatt the the seeing and in approximately hours is years same projects it as solar storage applications interconnections. significant build which of Projects grid are when same expected from we

selling while fleet Prop. is and we [ the regions, U.S. in projects in once enter most ] Europe, strategy right operate time. portions time can build, they any backlog. own to the at sell operational the non-IPP and our our at For of rights

which robust not funnel selectively time. pipeline only our projects ability realize but the extensive to projects best highlights value, through we also at can a monetize long-term of Our showcases

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

turn you, Slide Thank Ismael. Please to XX.

per slightly expenses third sequential quarter quarter, the margin XX.X%. expense shipping by China expenses quarter-over-quarter, to Recurrent million. was increase interest the This and preferred For $XX U.S. impact had Meanwhile, economic we shares announced storage effect net the in or R&D gradually We a to points loss and per revenue dilutive yen, Reserve's was investment, loss we Operating with primarily the which on Solar and basis dollar billion, million, total includes in coming $X.XX. Chinese million, in contracted in a battery a stable, to for resulting gross lower reflecting stimulus a time associated the diluted exchange $XX modest contributed costs, margins. which expect $X.XX rate of million. net with share. redeemable a rising in the and margin while million. the on payable of $X module with the by reported volumes derivative weaker $X stronger September, Canadian dividends quarters. Net coupled reported a foreign third-party $XXX of cut of remained XX of $X.X rises The loss reduced of earnings decline Energy to totaled in energy Gross Federal BlackRock's driven share attributable net

Canadian fewer Solar quarter's the results energy This Energy's project eliminations This Asia, significant net Canadian the and In may to yet have Solar's contributed business operation. ongoing Recurrent transformation in not transaction to the U.S. Recurrent continues near Recurrent intra-group the result loss recorded to mid-term, build reached sales sales notably the storage at model, projects, certain commercial absence periods. sells reflect that of projects of financial and but projects to for by the P&L pressure level. in on in

a value realized in the to consistent reduction more in long-term However, manner. the the be doesn't projects. it's and a imply value emphasize important will of that this Rather,

example, storage delivered to Solar substantial this CSI quarter, volumes Papago during projects. For Recurrent's

long-term for secured Arizona project landmark agreement which discussed, with a Public have Service. Ismael is we a As toll this already

cash operating and cash lowered activities flow $XXX driven third quarter used Net short-term Now, assets was million. payable. in and let's This for to primarily sheet. increased turn balance our Slide outflow was the Please XX. by project turn to notes

$X.X totaling with capacity the projects debt requirements and expenditures. driven the capital working $X.X and billion. was This increase we by expansion, in borrowings both new invested quarter, $XXX financing position debt Our manufacturing assets. of million primarily net support gross capital to approximately development stands billion, at In third in operating

to target in track remain full-year lowered of first the billion. our half year, Following the on adjustments we CapEx to our meet $X.X the of plan

same strategic be prioritize Looking year's ahead, CapEx we go in level, expect the ahead. please the next as we around to outlook. Shawn, investment

to Thank Slide XX. you, Xinbo. Please turn

quarter XXXX, anticipate shipment in Solar module CSI fourth of the megawatts solar we to own X gigawatts of range approximately gigawatts, our For by XXX be to projects. the to including X.X

In mark terms allocated of and quarter largest intra-group quarter energy X.X gigawatt eliminations, our the hours to hours this -- only be to margin to projects. billion, own date. We billion gigawatt Even range will expect to X in to the gigawatt range with XX%. to accounting $X.X total with around between battery shipments X.X hours fall our revenue total storage, storage we fourth $X.X XX% of gigawatt expected to between X.X gross forecast for with to

we the XXXX, total of between be XX module XX shipments to project gigawatts. year solar For full to gigawatts

expect in gigawatt These module of of For of X X the solar gigawatt XX allocated hour battery gigawatt storage, projects. XXXX. hours energy estimates include we XX to own and to approximately range our be storage in to shipments hours gigawatt

in towards work solar next supply the continued demand we move anticipate and as we challenges market rebalancing. As module dynamics year, into

is storage, costs adjusting. are also demand and the pricing On stabilizing remains strong,

these that, to the through with manage a for focus sustainable like open questions. management. With on Operator? rigorous to risk floor would and uncertainties now continue market growth I will We

& with first comes Colin Our Rusch line Instructions] question from the of [Operator Company. Oppenheimer

for wholesale I supply. the hoping of to Andre center speak pipeline This the in prices for your ongoing is was plans you project in monetizing electricity data could increases Adams for light Colin. on

I would this to Ismael? question. like Ismael address

significantly. for data Thank we and basically, always our are The But customers demand open we is the Sure. something to serve else to how centers Shawn. mean, the can to we for whatever do Look, us, most projects, the what believe we value looking I high strategy seeing see better we we to case significant you, of affecting way can we explore monetize we are are a of the -- best are see That's our customers we add how starting that's to amount PPAs. in shareholders. them.

initial we the gigawatts, X and whatever open time. best thinking in all see open chunk start majority gigawatts is it's best time. around at we X remain of to is and the time are will keeping it have operate what we the enough intention, is operation, But So, the doing selling on the to but start when believe That's once the volume initially, ownership. to we

potential And non-Chinese mature navigate just on how are are new you And to the battery conversations with supply tariffs? how side, your planning suppliers?

this Yan Please, Yan? will address question.

I sales the of Thanks, we volume contracts price volume, the be side, after accounting for X, that duty. Shawn. XXXX, we -- accounted January -- delivered it's for X.X%. so XX% Well actually on -- the the contract for is think, already which to on earlier actually current -- duty rate, for And

law of However, a protection. change have we always

So beyond actively have the for we possible storage we're for supply we And looking also and within Kentucky options. the also project. any change And XXX. evaluating announced different or --

your this I So, answers question. hope

of Wells Our next the with comes question from Satish Praneeth line Fargo.

there? the for How maintaining with do out then of recognizing balance duties question, what's building more kind they're Is that I strategy the presence going forward? you ASPs? XX% market it. you're announced of And that manufacturing You the potential capacity broadly, strategy some this share first committed manufacturing or the said you to about concern foreign I how market language that's at do the of U.S. entity a raising building out share in XX%, guess think the out guess, finalized. were guess the just not you U.S. antidumping that I But have given in

Shawn. is This

then will Thomas and provide address and will comments. ask further this I Yan to I Now, question,

mentioned, has advantage. Now Solar you as Canadian

a of combined to suite a strategy. have we or going So, options, use are weapons and we

the You mentioned U.S. factory.

U.S. We Thailand to can module factory is running. up U.S. cells ship from Our and

but cells cells solar tariffs, has value. the less Thailand from has Now solar also

in factory if expect cell That's a factory with it in module tariffs a to to good in another it factory So suppliers. and our building we And few to always are we Southeast make obviously, for Texas. solar into U.S. maintain also in XXXX. Asia, and output relationship Thailand that see even less also ship third-party solution. And Indiana, we from a for we

be will this another So, option.

as I we U.S. of have a or in So to we our weapons said, sure use deliver we options different suite and to make can weapons, to customers continue

not that U.S. you or sure XX%. gigawatt Now I believe market X mentioned to And market much if we we're I'm X XX year. gigawatts had to to -- size. share. X We ship gigawatt shipped to XX should around like X this around U.S. going be gigawatts

XX%, XX-something but So no, not are we percent. probably

So, I that's feet XX,XXX a my overview. like guess

Now, and Koerner, VP may Marketing. -- would for Senior more Sales like you. insight for to he to share our I with introduce you And have Thomas Thomas?

coming U.S. outlined, volume U.S. But starting So different increase. the Asian different And not locations, the will the market. and same to and further we potentially at factory market And The the different all that along. same materials continue strategies us are different of of U.S. of of course, serving as bill slightly the we Shawn capacity into channels the increasing to at Southeast growing manufacturing, can market. continue least level, prices different if and to U.S. on combinations. help expect time, first the use using all, we is for

the are in to us and circumstances. help they side, helping the this addition will we on overall believe us, So, customer

helpful that's No, And want very it. comments. I to... Got

more one let And me -- sorry. add

for FUC, items there's energy FUC you solar as IRA law current Regarding actually, and no in storage. know, the

a for for requires Congress. process the So of that, a it -- any process of that, revision legal

for Canadian-owned company. -- actually a us, feel that we we're don't So feel risky we anything given

we actually U.S. in the so confident are highly about our presence robust And

market of up sense. XX you the came ask if year. more guidance Makes to it? the without into kind Does XX with did demand gross around of Okay. Maybe of provide that up could how assuming of I But with this a high it's like gigawatts. size level gigawatts details flat came it impacting next shipments assumptions. on basically and outlook understand trying how -- Just you seems any take your wanted forecast the the as level it for margins? to amount this to module XXXX you you kind can

is This again. Shawn

sacrifice You are XX our gigawatts this too not we the gross we at range, see XX price, maintain gigawatts to out correct. maybe We put much. share, so number, this at Even market we less next margin margin while do will this year. that gross

shouldering mentioned, Thomas Asia cost products, still, shoulder for the and of there's to we increase. additional cost part have will the our together But duty believe customer As and handle Southeast we the increase are with customer.

will preliminary ruling this DOC days bit. probably X a hit our But gross little the ago. margin So, only announced AD

And analyzing. are still still we DOC we documents. So, also, for are more waiting to release

the the we few today. So, process such a years avoid we from understand also and high administrative a exactly do can in what review how tariff final they arrive in and this to number review

your same protect us gigawatts less yes, market answer share, protect should to allow gross to margin. XX XX question, the more to So or also gigawatts to but our

of question from next Capital Philip ROTH the Partners. with Our Shen comes line

pricing is preliminary the already how about determination. antidumping following talked just Thomas higher think going I

up get $X.XX checks question. get What then we And the Our that's is least when that first price already another the pricing determination, at So Does sound suggest $X.XX $X.XX. we expectations? are final going to of $X.XX higher. price your could reasonable? to

Second question.

country have the As high circumstances? have tariffs, AD/CVD to your Are Southeast contracts and of exposed because any Southeast of it of cancel Asia the the rates critical relates you guys been? to you any Asia how to had antidumping

mentioned You Thomas.

So, I will ask Thomas to share his Thomas? view with you.

the Shawn strong. customer as we're prices actually or come to up. individual I remains adjust started did in cannot and That's and anybody channels. towards any customers, have very as our with And need not together have and and by mentioned, the So shouldering different very can customer to this you feedback too said, cancellations concerned. products their cases at talk specifics. the Solar and We vary this strategies demand Canadian currently different yes, supply point, customer, about but

activities. cost-plus different have we know, you As

other demand And which forward to this activities. have to for helps a broad having us both 'XX. actually move We sides spread, significantly and pretty further is

you Okay. guys are And then -- go sorry, critical Shawn, impacted by ahead.

of my just I the part want second comment question. Yes. your on to add

as I cancel also, far throughout U.S. year. the and been existing to As evenly know, we had -- we have And haven't the shipping any to contract. producing shipping of

us, critical for And don't our have shouldn't critical any any shipment So circumstances. show we circumstances.

critical the until I to think total ruling. wait wait circumstances final whether have the until have shipment, apply ITC Now to we'll we'll -- to

it. Got

Okay.

say of any fair have like? terms what exposure that now? determination the you but for some, final cash have in you don't So to to Or looks the to is deposits, you want it wait

good question. we some a the been Well, I already products of we that and producing mean, produced. That's have

from to moment, with shipment Canadian sales to it's from the gigawatt small I But we of some amount big annual But customer -- produced at if preliminary products Yes, to compared will no willing deliver still breakeven. might amount. Solar kind the it's for or then the X else. in how have we somewhere pay to U.S., duty, want are of we AD/CVD customers So is and we water, exposed to and pay divert If we a eat ship, this high, this say can a bullet some X divert customer would and gigawatt the we Canadian ruling. too Solar some already have maybe, just to have exposure the much if -- annual every whatever may we import divert product. if already But on to of calculate. to this not the we're product

for hyperscalers other AI Okay. These hungry power. topic on Shifting and data are to the center. very

and You your of uncertainty, the as a have market. Recurrent in highlighted in guys remarks U.S. release There's you business. your lot

And in as to it to pay it when seem far. the like hyperscalers prices offset thoughts going in so risk be compressed economics away, so we it premium that some doesn't the ITC potential are to willing this power but away, When is it the willing demand What solar economics? go higher higher, uncertainty prices can thus pay are are you your power going think with the -- but support price the uncertainty of in higher hyperscalers higher There's do to much a timing U.S.? in weaker not get to willing they pay of as development on the think being to might might won't of the compressed. or

of winter says on I is I some calculation modeling videos help hat output winter from you with California, team, summer. my big. where the XX% take even my this X hyperscalers California, solar this now. summer also the install I difference seasonal our the and this how of calculation, can't I Philip, did short the just see our of about see, And to for And right? is energy know number a just of our put would system say a of I like you modeling by solar calculation. calculation, my And In because together my talking and where wind can really be -- Philip, built. heart not speech only actually, released storage PhD public forum. our to in question solar I and would to the was

And so more XX/X as power less a XX able very price. of same But to it's solar price that provide even or continuous the storage months be the grid place to from the we a convenient and XX% shows the calculation California to energy plus like hyperscaler in same power. provide have situation, that at on-site not solar our will price,

these get they a So, And they but to know, not a just -- have sometimes grid. have price. They can build not you don't pay days, pay a and price, to higher a center. the have give to clearance you permit data to to it's whatever as whether it's

are parts So, a that that, in I cases demo like build few Certainly, will -- build center to I mean, believe going would to is and different of data we the people I market. biggest see world. the U.S.

do help see the it. And like XX% to one and would from with U.S. on-site the we think plus provide So, to demo, people some And that's grid, power how wonderful grid with to XX% only but centers. solar to can supply data of I storage will in will have course, that power

demo. say a So, I would build

The time. some first demo always takes

years, So, plus how on-site provide I data maybe to would say people handily storage can will power centers. see in solar X

line with Bagri from comes next Citi. Our the of Vikram question

maintenance XX PV $XXX about Could assets much liquidity to balance leverage wanted and cells, comfortable battery on CapEx over the on these $XXX you for I some talk Solar some legacy cells. million the months requirements. cash, next over In fund U.S. us If uses cash million highlight expenses? what CapEx presentation, to you the minimum which imagine will would strategy? How CSI the for can that the be CSI required months XX and all of cash next was of the the planned you to I look sources sheet combine is at wondering the just also China deposits CBP help What are at understand buybacks uses. is transfer the you to and cash and with XX and you balance and Solar with? to would how these? I months? fund in

a that's Yes, question. good

be protect attention to pay flow, a the always Solar level cash good Canadian the and always healthy maintain to Now, cash sheet. balance

Steven, CSIQ have for CFO Accounting Now, the CSI Chief Solar. Officer I also the of Xinbo, and

So, I additional these provide would like some to color. gentlemen X

Yes.

Okay. This Xinbo speaking. is

is So, cash and the the Solar are at about we your managing right? side, question CSIQ how CSI

Yes.

keeping Just deposits the the that? leverage with cells, to understand, comfortable what's how CSI trying CBP the capital up will you're where upgrading capital PV the fund you buyback the And intensity will with? battery -- that level intensity, given Solar, legacy you date, cells, intensity, fund the and CSI the at appropriate assets the to Solar, how and

some question. smaller into big break a It's I categories. will Yes. down it

factory projects. financed partially development, the of covers of supplier from -- financed the payments Then and the equity. we with it's in XX% the the For partially customers the facility, financing, The from project from the manufacturing with U.S. total the the it our about CapEx also the majority normally, down CapEx we financed non-recourse the And -- side, are of debt. raising project is project we

the debt in We the are our support expansion to U.S. U.S. manufacturing in million closing $XXX

all a working of working it's capital, covered Yes, course, factories. Have our the of equity I the the part some Of into own about invest capital. also we your the questions? deposit. Or right, about

than that we our have and have enough CSI business closely manufacturing have are working cash support business. Solar, monitoring capital we capital, solutions support we to to the volume. confident working We been $X.X billion and our Yes, more

number. remind to a total Vik, I you also want $X billion, that just it's

years. be it over of would few So course invested the a

Got X color provide be X it. U.S. I next going margins. then to or if will gigawatts quickly, around year. you the will maintain wanted PV will mix Should some And still mix is expect geographical to what that shipments, on clarify And of gigawatts, to CSI mentioned the be the we shipments you change? can -- Solar

sales, margins. You next in margin battery puts have has from shift -- margin and trying Just sales the Are to are offset the mix of geographical what which you've strong higher you the accretion seen like to battery next year? some very takes expecting year? increase understand for and very, like

Yes.

For margin, the early. for to distribution solar we module are geographic I some But you clarify well, to want that ask the next I still color. year, of the like first cells to off, Thomas give would

not We're in We December. are XXXX still in yet.

on So, say our will whatever current based we be view.

some you view? your Thomas, Now, do share -- to share want

Yes.

increase up able help there further potentially should demand U.S. the and volume at how grow. definitely shipment, The to and and how XXXX. capture module activities as other the diversified mentioned, have also goes We'll we're strategy, same in slightly year it but trying to U.S. further capacities, our us see be market, as ramping that least manufacturing For the slightly to BOMs other we're year, demand. this is we the to positive you into

for That concludes back floor to session. turn our management question-and-answer comments. final I'll the any

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