Canadian Solar Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's second quarter 2025 earnings conference call. My name is Daryl, 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. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Wynna Wong, Head of Investor Relations at Canadian Solar. Please go ahead.

Thank you, Operator, and welcome everyone to Canadian Solar's second quarter 2025 conference call. Please note that today's conference call is accompanied with slides which are available on Canadian Solar's investor relations website within the events and presentation section. Joining us today are Dr. Sean Chu, Chairman and CEO, Yan Zhuang, President of Canadian Solar subsidiary CSI Solar, Ismael Guerrero, Corporate VP and President of Canadian Solar Subsidiary Recurrent Energy, and Simbuo Zhu, Senior VP and CFO. All company executives will participate in the Q&A session after management's formal remarks. On this call, Sean will go over some key messages for the quarter. Yan and Ismael will review business highlights for CSI Solar and Recurrent Energy respectively. Simbuo will go through the financial results. Sean will conclude the prepared remarks with the business outlook, after which we will have time for questions. Before we begin, I would like to remind listeners that management's prepared remarks today, as well as their answers to questions, will contain forward-looking statements that are subject to risks and uncertainties. The company claims protection under the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. Any projections of the company's future performance represent management's estimates as of today. Canadian Solar assumes no obligation to update these projections in the future unless otherwise required by applicable law. A more detailed discussion of risks and uncertainties can be found in the company's annual report on Form 20-F, filed with the Securities and Exchange Commission. Management's prepared remarks will be presented within the requirements of SEC Regulation G regarding generally accepted accounting principles or GAAPs. Some financial information presented during the call will be provided on both a GAAP and non-GAAP basis. By disclosing certain non-GAAP information, management intends to provide investors with additional information to enable further analysis of the company's performance and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. Non-GAAP information should not be viewed by investors as a substitute for data prepared in accordance with GAAP. And now I would like to turn the call over to Canadian Solar's Chairman and CEO, Dr. Shawn. Shawn, please go ahead.

Thank you, Wina, and thank you all for joining our second quarter earnings call. Please turn to slide three. In the second quarter, we delivered 7.9 gigawatts of modules near the end of our guidance, near the high end of our guidance. Storage shipment reached 2.2 gigawatt hours. Below guidance due to tariff impacts, we shifted deliveries into the second half. Revenue totaled $1.7 billion for the quarter. also impacted from certain project sales delay. Gross margin exceeded guidance at 29.8 percent, driven by a higher mix of North America module shipments, with notable contributions from our Texas module factory, which has made strong progress in ramping up robust storage performance further supported margins. Profitability was weighted down by certain now recurring operating expenses, including the impairment of remaining legacy manufacturing assets. As a result, we reported net income attributable to shareholders of $7 million. or a net loss of $0.08 per diluted share due to the PIK accounting for a preferred shareholder of recurrent. Over the past few months, our industry faced a challenging policy environment. While the industry continues to adjust to the recently passed One Big Beautiful Bill Act, I would like to discuss some potential impacts at this time. Please turn to slide four. The One Big Beautiful Bills Act has striking implications for both supply and demand in the U.S. On the supply side, solar and storage domestic onshoring is challenged by increasingly stringent of EOC requirements and higher for two days on both equipment and components. According to Wood Mackenzie, up to 23 gigawatts of operating solar module capacity could be a factor. Cell capacity, which requires more complex manufacturing process, and higher capital expenditure could also moderate. On the demand side, outlooks across solar, energy storage, and distributed generation appear mixed. Other than for projects that have been safe harbored, the investment tax credit or ITC for solar will phase out by the end of 2027. energy storage project must navigate annual FEOC threshold to maintain developer credit. Despite this near-term uncertainty, the long-term outlook of our industry remains strong. AI, cryptocurrency, and other energy-intensive applications are driving rising electricity And solar plus storage is among the most cost competitive solutions to meet this demand. Future growth will continue to be underpinned by solid fundamentals. As with challenges we have overcome in the past two decades, we believe that a new paradigm creates new opportunities. Today, every part of our business is deeply engaged in the U.S. market. We deliver both solar and storage solutions across utility scale, D&I, and residential applications. We are a domestic manufacturer and a local project developer. We remain committed and will do what is necessary to continue prioritizing this market. Another ongoing commitment is our focus on sustainability. On May 29, we released our 2024 Sustainability Report. Please turn to slide 5. We are proud of our continued progress in our sustainability journey. and reporting standards. In 2024, Canadian solar reduced greenhouse gas emissions, energy, water, and waste intensities by 54%, 37%, 75%, and 53%, respectively, compared to 2017 levels. Consistent with our commitment to improving our environmental footprint, we increased the percentage of recycled and reused waste to 94% in 2024. We're maintaining 100% recycling or reuse of all packaging materials used in our production process. We also continue to uphold the highest standards of ethical business conduct across our supply chain. After receiving silver level recognition in 2023 for the RBA VAP audit of our Thailand module facility, we achieved another silver level recognition this year for our solar cell factory in Sichuan, Jiangsu Province, China. In 2024, we conducted 147 supplier ESG audits, including 31 on-site evaluations, surpassing our 2023 totals. Following collaborative consultations and corrective action plans, all suppliers met our stringent ESG criteria. With that, I will now turn the call over to Yann, who will provide more details on our CSI solar business. Yann, please go ahead.