Daqo New Energy Corp ADR

Good day and welcome to the DACU New Energy fourth quarter and fiscal year 2023 results conference call. All participants will be in the listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Ms. Anita Xu. Please go ahead.

Thank you. Hello, everyone. I'm Anita Xu, the investor relations of Tako New Energy. Thank you for joining our conference call today. Dakonew Energy just issued its financial results for the fourth quarter and fiscal year 2023, which can be found on our website at www.dqsolar.com. Today, attending the conference call, we have our chairman and CEO, Mr. Xiang Xu, our CFO, Mr. Ming Yang, and myself. The call today will begin with an update from Mr. Xu on market conditions and company operations, and then Mr. Yang will discuss the company's financial performance for the quarter and the year. After that, we'll open the floor to Q&A from the audience. Before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth, are forward-looking statements that are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those containing any forward-looking statement. Further information regarding these and other risks is included in the reports or documents we have filed with or furnished to the Securities and Exchange Commission. These statements only reflect our current and preliminary view as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. All information provided in today's call is as of today and we undertake no duty to update such information except as required under applicable law. Also during the call, we'll occasionally reference monetary amounts in U.S. dollar terms. Please keep in mind that our functional currency is the Chinese RMB. We offer these translations into U.S. dollars solely for the convenience of the audience. So Mr. Xu will make his remarks regarding current market conditions and company performance in Chinese, which I'll translate into English after he finishes. Now I'll turn the call to our CEO.

Thank you, Anita. I'm Xu Xiang, the CEO of Dajian. Thank you for attending today's conference. 2023 is a year full of challenges for the solar industry. Global equipment has set new records, but at the same time, because of the market price, The sales volume has also reached 200,000 lights, and in 2022, the 13-year-old 2909-light has grown by 50%. Global solar energy supply products' demand has grown rapidly in 2023, but the price of multi-billion-dollar markets has experienced a significant fluctuation. In 2022, multi-billion-dollar markets will be able to supply the supply of top-down oil. The price continues to be in a high position, and it will be paid back from the beginning of 2023. The price of Doujin Kui began to decline gradually. Therefore, the average sales price of Doujin Kui fell from $32.50 per kg in 2022 to $11.18 per kg in 2023. Although the average price of Doujin Kui fell significantly, our income fell from $46 billion in 2022 to $23 billion in 2023. However, the increase in sales volume has to be underestimated. The company's profit margin in 2023 is still strong. China China China China China In the last quarter, we have increased by 3,350 tons. In the fourth quarter, our high-quality N-type polyurethane products are in strong demand from customers. Our products' inventory is also at a very low level, so that we can effectively resist the next risk during the end of the year. With the release of new materials, the price difference between high-quality manufacturers and newcomers has become obvious in the fourth quarter. Although the market is competitive, But because we are still ahead in terms of cost and quality, we are still able to maintain a win-win situation. Our unit production costs are gradually decreasing. In 2023, the fourth quarter will be about $1.2 per kilogram, which is the same as last year. Our N-SIM material products will be nearly 60% in December. In general, although the market conditions are challenging, but our fourth quarter has received $1.28 billion in inexhaustible pre-sale benefits. and maintain an objective progress rate. We expect that the total production capacity of the first quarter of 2024 will be from 60,000 to 62,000 tons. Compared to the fourth quarter of 2023, we plan to invest in a 5B project in the second quarter of 2022. Therefore, we expect that the total production capacity of the first quarter of 2024 will reach from 280,000 tons to 300,000 tons, which will increase by 40% to 50% in 2023. With more than 10 years of production experience, the production system is fully digitalized and highly integrated. We will further optimize the operation efficiency, In fact, the N-type material is in the proportion of the product combination. At the industry level, from the beginning of 2021 to the end of 2021, due to the slowdown of economic demand and the deterioration of the stock market, the price of goods has dropped. The price of goods has increased from 9 months to 87 yuan per kilogram, down to 12 months to 65 yuan per kilogram. From the demand point of view, since October, the price of goods has dropped due to the deterioration of the stock market, and the stock market has dropped sharply. The N-type component price broke through its peak in November, A yuan of RMB is not enough. The price of solar panels and electronic products is almost close to the cost line. From the point of view of supply and demand, the production volume of China's multi-billion-dollar products is relatively high. Most of the production growth comes from the growth of O3T, including some new investors. However, the growth of effective production on high-capacity manufacturing is lower than expected, which leads to a price gap between O3 and O3Y. The price of N-type and P-type multi-billion-dollar products ranges from 65 to 68 yuan per kilogram of RMB. and 55 to 62 yuan per kilogram. In the upper half of 2020, we expect that the price will be affected by the economic impact of China's circular economy and will be stable in the second quarter. As the next-generation manufacturers upgrade to the N-type, they will accelerate the N-type top-con products. The high-priced P-type POC products will push the market and accelerate the full-fledged innovation of the N-type products. We expect that in this trend, in the N-type market in 2020, The demand for the high-intensity N-type transceiver will remain strong. Looking back at the past year, 2023 is a year when renewable energy has achieved a significant breakthrough. The world is accelerating the transformation of renewable energy. Among them, the continued expansion of China's太阳能光伏 market has played a key role. In 2023, the new light bulb capacity of the light bulb reached 216.88GW and reached a historical high of 148% on average. Especially in December, We believe that the new era of N-type products will lead to a new era of N-type products. We think that by further improving We believe that China will have the largest number of multi-border production facilities in the world. 我们已经开始尝试使用人工智能技术, 将这些数据应用于提高产品组合中N型硅胶的笔记, 降低生产成本, 通过识别各个制造流程之间的关系, 最终预测建模得到具有生产模型的输入范围, 再参考。 展望未来, 我觉得我们收集更多的数据点, 并充分利用人工智能正常分析。 现在请Anita替我翻译一下。