Emeren Group Ltd

Hello, ladies and gentlemen. Thank you for standing by for Emarin Group Limited's second quarter 2024 earnings conference call. Please note that we are recording today's conference call. I will now turn over the call to Gary Dvorak, managing director of the Blue Shirt Group. Please go ahead, Mr. Dvorak.

Okay. Thank you, operator, and hello, everyone. Thank you for joining us today to discuss second quarter 2024 results. We released our shareholder letter before the market opened today, and it is available on our website at ir.emron.com. We also provided a supplemental presentation that's posted on our IR website as well, and we'll reference that during our prepared remarks. Yesterday, we filed our Forms 10Q for both the first and the second quarters, so we are now fully compliant with SEC reporting requirements. 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, or other information that might be considered forward-looking. These forward-looking statements represent Emory Group's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under risk factors and elsewhere in Emarin Group's filings with the FCC. Please do not place undue reliance on these forward-looking statements, which reflect Emarin Group's opinions, only as the date of this call. Emarin Group is not obliged to update you on any revisions to these forward-looking statements. In addition, please note that all financial numbers discussed in this call are unaudited. Also, please note that unless otherwise stated, all figures mentioned during the call are in U.S. dollars. With that, let me now turn the call over to Mr. Yumin Yu. Yumin, go ahead.

Thank you, Gary. Thank you, everyone, for joining our call today. I'll begin by providing an overview of our operational performance in Q2 2024, and Kuo will discuss our financial results for Q2 and our outlook. In Q2, our company achieved solid progress, generating $30.1 million in revenue, This performance was underpinned by gross profit of $9.4 million, translating to a robust gross margin of 31.2%. Operating profit was $3 million, and net income attributable to Ameren Group Limited was $0.4 million. These results reflect our disciplined approach to growth, particularly through the execution of our development service agreements, BSA, strategy across Europe and the US. Our relentless focus on improving efficiency across all regions has paid off, enabling us to maintain strong operating discipline and control cost effectively. Offsetting our solid operating profit, net income was reduced by around $2 million. Write-offs relate to canceled projects and unrealized foreign exchange loss of 0.8 million. Despite these setbacks, our ability to deliver a solid operating profit underscores the resilience and adaptability of our business model. In terms of our business lines, first, our DIC structure has established a stable and predictable business model. enabling us to monetize projects at the early stages of development and secure higher quality contracted revenue. This approach is crucial for managing risk and maximizing cash flow throughout the project lifecycle. By end of the second quarter of 2024, we had signed over two gigabyte of projects with eight DSA partners in Europe to monetize these early and mid-stage projects the total contracted revenue of over $60 million is expected to be recognized over the next two to three years based on the development milestones. In the first half of 2024, we achieved $8.2 million of DSA revenue, already surpassing the full year of 2023 DSA revenue, total of $6.5 million. Looking ahead, We are committed to expanding our DSA partnerships on a global scale, leveraging our expertise and track record to enter new market and forge strategic alliance. Currently, we have over two gigawatts of DSA contracts under negotiation. These contracts are expected to close within the next six to eight months. bringing the company an estimated $100 million in revenue to be recognized over the next three to four years. In parallel, our BAS projects are gaining momentum, particularly in Italy. We recently finalized a DSA agreement for BAS projects with PLT Energia, one of Italy's largest independent renewable power producer, specializing in wind and solar. This transaction comprises a batch portfolio totaling 394 megawatts, demonstrating the growth of our batch strategy in Italy, where we now have a total of 1.7 gigawatt batch projects in the DSA structure. In Q2, we signed a contract to sell a 42 megawatt RTB solar project portfolio in Spain to CVE Hispana. a subsidiary of French independent power producer CVE. Developed by Ameren since 2021, this diverse portfolio is comprised of eight Greenfield projects ranging from five to six megawatts. Together, these eight projects will generate approximately 92.8 gigawatt hour per year of energy, serving around 28,000 households in the region. The awarded carbon emissions will amount to about 20,000 tons of carbon dioxide per year. Additionally, in Q2, we completed the delivery of 13 megawatt COD project in Hungary, further solidifying our presence in the country. This accomplishment builds on our December 2023 sale of a 53.6 megawatt solar portfolio in to Cronospen Douglas Renewables. The six projects, set to power approximately 9,500 households, reinforce our commitment to providing sustainable energy solutions across Europe. Furthermore, our IPP assets exhibited strong growth and profitability, contributing approximately 30% of our total revenue for the quarter. we continued to optimize the operation of our solar farms, including Branston in the UK. The IPP segment is a crucial component of our business model, providing a reliable source of stable and predictable cash flow. IPP revenue is balanced between Europe and China with a modest presence in the US. In Europe, we have 67 megawatt IPP assets generating recurring revenue. Our IPP assets in China, the majority of which are located in the five coastal provinces with favorable power prices, strong economies, and robust regulatory environments, are being fortified with the addition of battery storage projects. As of the end of Q2 2024, our battery storage portfolio in China comprised 26 megawatt hours, all integrated into a virtual power plant or YPP platform owned and operated by Huanong Power International, one of China's largest IPP operators. Looking ahead of the remainder of 2024 and beyond, we are well positioned in many of the world's fastest growing solar markets. These markets are supported by rising clean energy demand, favorable government policies, and advancing technologies. Our priorities include advancing early stage projects, securing additional DSA partnerships in Europe and the US, and optimizing strategies to maximize the value of our development pipeline. With that, let me turn the call over to our CFO, Ke Chen, to discuss our financial performance and guidance. Ke?