Emeren Group Ltd

hello ladies and gentlemen thank you for standing by for emirates group limited third quarter 2023 earnings conference call please note we are recording today's conference call i will now turn the call over to mr yu jia zhai managing director of blue show group please go ahead mrs zai thanks operator and hello everyone thank you for joining us today to discuss our third quarter 2023 results

We released our shareholder letter after the market closed today, and it's available on our website at ir.mrn.com. We also provided a supplemental presentation that's posted on our IR website that we will reference during our prepared remarks. On the call with me today are Mr. Yumin Liu, Chief Executive Officer, and Mr. Ke Chen, Chief Financial Officer. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, and other information that might be considered forward-looking. These forward-looking statements represent MRN Group's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results with different materials. Those risks are described under risk factors and elsewhere in MRN Group's filings with SEC. Please do not place undue reliance on these forward-looking statements, which reflect MRN Group's opinions only as of the date of this call. MN Group is not obligated to update you on any revisions to these formal statements. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to Mr. Yimeng Liu. Yimeng?

Thank you, Yujia. Thank you, everyone, for joining our call today. I will start by giving you a big-picture look at how we perform in the third quarter of 2023. Then I'll delve into our project pipeline and our guidance. Following that, CURL will provide a detailed rundown of our financial results for Q3. We closed Q3 with revenue of $13.9 billion, gross margin of 40.8%, and net loss of $9.4 million. Our revenue was below our guidance, mainly due to the timing of our final government approval for our 53 megawatt solar NTP practical volume . expected to receive the approval based on the government official processing timeline before mid-August. Had we received approval within their standard timeline, our revenue would have been near the low end of our guidance range. The good news is that we received government approval yesterday on November 20th, 2023, and we will recognize the revenue in Q4. Our Q3 results were further impacted by several one-time non-cash expenses. First, we recorded a $4.8 million foreign exchange loss as a result of a strong dollar. Second, we recorded $4.5 million one-time expense from impairment and write-off of assets of several pending projects as a result of permitting challenges. In addition, we expensed $1.3 million of development costs related to our pre-tier projects that previously would have been capitalized under our old tiering system. Excluding these items, our bottom-line performance would have been breakeven. Of our 13.9 million revenue for the quarter, we continue to benefit from our IPP assets. Particularly, our UK 50 megawatt Brimstone project and our China 156 megawatt portfolio of rooftop solar assets, which combined generated 9.4 million revenue in the quarter with strong margins. Moreover, in Q3, we successfully completed the grid connection of our first solar storage project in Ningbo, Zhejiang Province, China. This project has a capacity of 1.2 megawatt hour, operates behind the meter and is backed by a private local . It has been strategically designed to yield high returns through daily price arbitration, emphasizing our commitment to sustainable and financially responsible energy services. In addition, we have a growing portfolio of projects in the planning and execution phase in China. The pipeline of such 80 megawatt hour is all similar commercial and industrial-sized storage projects, including several under construction. Furthermore, we recently announced a successful sale of a state-of-the-art portfolio comprising five Battery Energy Storage Systems, or BESS, in Italy to Matrix Renewable with a total capacity of 410 megawatts. Our total storage project portfolio with Matrix now has a cumulative capacity of 3.81 hours. This portfolio is statistically located in the Italian Southern region of Apulia, significantly enhancing the regional energy infrastructure. We expect the project to achieve the ready-to-build status by late 2024. Since the announcement, we have been approached by several top-tier renewable energy investment funds who are interested in partnering with us on our portfolio-based projects. For North America, in Q3, our team continued focus on our strategic goal of solar and storage pipelines by acquiring new project sites and advancing the development of the existing project pipeline. We have grown our one-stage storage pipeline significantly since last quarter to 3.8 gigawatt hour, which will contribute to our overall success. This solar storage projects are major milestones for us and represent a defining chapter in our journey towards becoming a leading global renewable energy company and a storage powerhouse. As part of our strategic plan, we plan to further expand our storage portfolio and our light IPP strategy Furthermore, we remain steadfast in our commitment to executing our storage business strategies, solidifying our dedication to sustainable and innovative energy solutions. During the quarter, we also grow our advanced solar project pipeline. At end of 2023, we anticipate an advanced solar project pipeline of at least 3.5 gigawatts, of which we anticipate monetizing approximately 400 to 500 megawatts of projects in 2024 and beyond. By the end of Q3, our advanced solar project pipeline has increased to over 10 gigawatt hours. For the full year 2023, We now anticipate revenue to be in the range of 110 to 130 million due to project timing. We expect net income to be between 3 to 4 million. This gross margin of approximately 25 to 28%. We expect our Q4 revenue to be between 50 to 53 million, gross margin to be in the range of 21 to 25%, and net income to be in the range of 4 to 5 million. Let me turn the call over to our CFO, Claude Chen, to discuss on financial performance.