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| Statement |
|---|
| We expect this trend to continue throughout 2024 with strong demand for higher-purity N-type poly in a market with tight supply |
| The global acceleration in the transition to renewable energy was primarily driven by China's booming solar market with new solar PV capacity reaching record high at 216.88 gigawatt, a 148% year-over-year growth |
| So we do believe we will continue to see a very strong demand -- robust demand for N-type in a tight supply market going forward |
| So very great result |
| We expect that as we collect more data and further leverage our AI-powered analytics to provide additional insights, we'll be able to further reduce cost, achieve higher efficiency, and increase productivity |
| The company generate a very strong operating cash flow of approximately $1.6 billion for the year and continued to maintain a healthy balance sheet with no financial debt |
| During the fourth quarter, continued optimization of operations and improvements in yield and throughput at our two poly facilities resulted in total production volume of 61,014 metric tons, an increase of 3,350 metric tons, compared to the previous quarter |
| Fourth quarter saw solid demand from customers for our high-quality N-type poly and as a result our finished goods inventory was at a very low level of which will has allowed us to effectively hedge against downside risks during the off-season period close to the end of year |
| We are optimistic that we'll capture the long-term benefits of the growing global solar PV market and maintaining our competitive advantage by enhancing our higher efficiency N-type technology and optimizing our cost structure through digital transformation |
| With more than a decade of experience in poly production, as well as a fully digitalized and integrated production system, that optimizes operational efficiency will further increase anti-production in the product mix |
| Despite fierce market competition due to the addition to poly supply, we continued to maintain our leadership in both cost and quality |
| So we are, first of all, we are very confident in our company's operations and we have sufficient cash flows that Ming has mentioned previously |
| Despite the challenging market conditions, gross margin still came in strong at 39.9% for 2023 |
| Overall, we maintain profitable despite the challenging market conditions, generating $128 million in EBITDA for fourth quarter and maintain a strong cash flow |
| Despite an 8% increase in silicon metal procurement costs in Q4, compared to Q3, we managed to reduce costs slightly due to improvements in utilization, as well as other improvements in manufacturing efficiency |
| I think it was 50%, 60%, I don't remember, and also the guidance, very great, while also decreasing the cost |
| Thank you very much and have a wonderful year and continue doing what you do |
| This surge was particularly evident in December when China added 53 gigawatt, which is roughly a quarter of the entire year's additional capacity |
| So this already brings us to N-type poly in the RMB70 to RMB73 range in P-type in the RMB60s range, right? Much improvement from the December level of pricing |
| The market transition to N-type products has been accelerating as downstream producers continue to switch to N-type products, driven by the higher price premium for N-type TOPCon products over P-type per product |
| We believe that we will definitely consider these plans to increase confidence in our company and in our management team |
| Thanks to the dedication and valuable contribution of our team, we reached an annual polysilicon production volume of 197,831 metric tons in 2023, meeting our guidance of 196,000 to 199,000 metric tons and representing a 47.8% year-over-year growth rate, compared to 133,812 metric tons produced in 2022 |
| On the supply side, poly production volumes in China continued to increase on a month-over-month basis in Q4 and Tier 2 and Tier 3 manufacturers, including new engines, contributed most of the growth in poly supply |
| The continuous cost reduction in solar PV products and the associated reduction in solar energy generation costs are expected to create substantial additional green energy demand |
| And actually the 4Q result is decent amid the challenging market situation |
| We plan to begin initial production at our new Inner Mongolia 5B facility in the second quarter of 2024 and as such we anticipate full-year 2024 production volume to be approximately 280,000 metric tons to 300,000 metric tons, approximately 40% to 50% higher than in 2023 |
| Overall, 2023 was an unprecedented year marking a step change for renewable energy growth |
| And we believe that we still want to maintain a very healthy balance sheet to survive in this market and to undergo the current conditions |
| So we do think going into the summer when the demand level recovers, let's say that we can recover to the level that we saw in the August-September time frame |
| The increase in gross margin compared to the third quarter of 2023 was primarily due to higher average selling price and lower production cost |
| Statement |
|---|
| In November, N-type module prices dropped below RMB1 per watt for the first time and solar cell manufacturers could hardly make a profit |
| Our revenue was $2.3 billion in 2023, compared to $4.6 billion in 2022 due to much lower ASPs |
| Despite robust demand growth for solar PV products globally in 2023, the high poly prices driven by capacity mismatches between upstream and downstream players and the resulting supply shortages that we have seen in 2022 were alleviated by early 2023 |
| The briefing on the industry, poly prices in the fourth quarter declined from approximately RMB87 per kilo for mono-grade poly in September to approximately RMB65 per kilo in December, primarily due to a seasonally lower demand |
| On the demand side, in October, the ingot segment reduced utilization rates due to accumulated inventory and lower wafer prices |
| The decrease in revenue compared to the third quarter of 2023 was primarily due to decrease in sales volume, mitigated by increasing ASP |
| And in terms of what we're seeing in the market, overall, we are seeing a relative oversupply of poly relative to demand |
| You know, the stock is down 30% year-to-date |
| As a result poly-ASPs declined significantly for the year to $11 per kilo from $32.54 per kilogram in 2022 |
| The decrease in gross profit was primarily due to lower average selling price |
| However, as the market is currently undergoing tremendous challenges and there are a lot of unforeseeable market dynamics happening, the board is keeping an close eye on the current market conditions and see how it evolves as time goes |
| 2023 was a year of unforeseen developments and challenges in the solar industry with record installation volumes worldwide, but also record low prices at the end of the year |
| Based on our understanding, it's still very difficult to produce and type with other, let's say cauliflower type poly |
| Compared to the end of last year our production cost trended down quarter-over-quarter reducing by approximately $1.2 per kilo from fourth quarter of 2022, compared to that in fourth quarter of 2023 |
| However, leading high quality manufacturers produced less than anticipated, widening the price gap between high quality manufacturers and Tier 2 companies |
| We are not very worried about electricity cost |
| The decrease was primarily due to lower polysilicon average selling prices and partially mitigated by higher sales volume |
| Our ability to achieve these projections is subject to risks and uncertainties |
| A number of factors could cause actual results to differ materially from those contained in any forward-looking statement |
| However, because [Indiscernible] uses state grid and the local government has limited power on the electricity cost |
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