Good morning. Welcome to Daqo New Energy first quarter 2021 results conference call. Our participants will be in 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'll be an opportunity to ask questions. Please know this event is being recorded. I would now like to turn the conference over to Kevin He from Investor Relations. Please go ahead. Hello, ladies and gentlemen. I'm Kevin He, the Investor Relations of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the first quarter of 2021, which can be found on our website at www.dqsolar.com. To facilitate today's conference call, we have also prepared a PPT presentation for your reference. Today, attending the conference, we have Mr. Longgen Zhang, our Chief Executive Officer, and Mr. Ming Yang, our Chief Financial Officer. The call today will feature an update from Mr. Zhang on market and operations, and then Mr. Yang will discuss the company's financial performance for the quarter. After that, we will 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 the preliminary view as of today and may be subject to change. Our ability to achieve these projects, projections is subject to risks and uncertainties. All information provided in today's conference 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 will 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. Without further ado, I now turn the call over to our Chief Executive Officer, Mr. Zhang, please. Thank you, Kevin. Hello, everyone. Thank you for joining our conference call today. During the quarter, we continued to see strong momentum in customer demand for high-purity polysilicon, which led to a significant shortage of polysilicon and high polysilicon ASP. Our ASP in the first quarter of 2021 was $11.90 per kg, approximately 10% higher than Q4 2020. Due to the elapsed time from contract signing, product shipment to revenue recognition upon product's arrival at customer sites, it takes time for market prices to be fully reflected to our ASPs during the periods of rapid price change. Based on current customer contracts and product deliveries, we expect our ASP in the second quarter of 2021 to be in the range of $19-$20 per kg. A significant improvement compared to Q1 that better reflects recent market pricing trends. As of today, current market pricing for high-purity mono-grade polysilicon has already reached the level of $ 23-$25 per kg. With strong end market demand, driven by global carbon neutrality commitments by all major economies, major mono wafer manufacturers continue their capacity expansion and new entrants build new wafer capacity. As a result, we believe that supply in the polysilicon market will remain tight until the middle of 2022, when the market will finally see some additional supply of polysilicon. During the quarter, we produced 20,185 metric tons of polysilicon, which lays a solid foundation for achieving our production target this year and also gives us the confidence to raise our guidance for annual production volume to the range of 81,000-83,000 metric tons from 80,000-81,000 metric tons. During the quarter, approximately 99% of our polysilicon products were sold to mono wafer customers, and we already began commercial shipments of N-type polysilicon to our four major clients. Our production cost was up by 4% in Renminbi terms. In the quarter as compared to Q4 2020, primarily due to the rise in the cost of silicon raw material and the impact of lower production volumes. We expect production costs to stabilize in the coming quarters as the cost of silicon raw material has stabilized for the time being. As we continue our efforts to reduce cost and improve quality as we expect to see the benefits from our newly implemented digital manufacturing system to stabilize production, maximize output, and optimize efficiency. On the business development front, we have already sold out our production volume of this year through the long-term supply agreements with customers that span all the major mono wafer manufacturers, as well as major integrated solar manufacturers. More importantly, in connection with these long-term supply contracts, we have received CNY 800 million of prepayment from customers this year to date, which will help us fund our future expansion plans and ensure our future market share. This shows the tightness of our polysilicon market and the strong momentum in demand growth. As well as the fact that our customers find Daqo is the leading supplier of high-purity mono-grade and N-type polysilicon with high reliability, stability, and consistency. In mid-March, we began construction for our new Phase 4B project, which will add 35,000 metric tons capacity for high-purity polysilicon. We expect to complete the project by the end of 2021, and a ramp up to full capacity by the end of Q1 2022. Our Phase 4B project and the potential IPO on China's stock market will bring us into a new phase of development and enable us to quickly expand capacity to address the fast-growing demand from the global solar PV market for ultra-high purity polysilicon. In the present context of global carbon neutrality goals, major economies in the world, including China, are launching ambitious policies to mandate the use of clean energy and address climate change. With the mega-trend of the transformation to lower carbon economy and decarbonization of the energy sector, we are entering a new era of accelerated growth for the solar industry. We believe Daqo New Energy is very well-positioned to benefit from this tremendous opportunity. Let's move to our outlook and guidance for our company. The company expects to produce approximately 20,000-21,000 metric tons of polysilicon, and sell approximately 20,000-21,000 metric tons of polysilicon to external clients during the second quarter of 2021. For the full year of 2021, the company expects to produce approximately 81,000-83,000 metric tons of polysilicon, inclusive of the impact of the company's annual facility maintenance. I will turn the call over to our Chief Financial Officer, Mr. Yang, who will discuss the company's financial performance for the quarter. Thank you, Longgen, and hello, everyone. Thank you for joining our conference call today. Now I will discuss our company's financial performance for the first quarter of 2021. Revenues were CNY 256.1 million, compared to CNY 247.7 million in the fourth quarter of 2020, and CNY 168.8 million in the first quarter of 2020. The increase in revenue was primarily due to higher ASPs, partially offset by slightly lower polysilicon sales volume. As Longgen indicated earlier, based on our current customer contracts and product deliveries, we expect our ASP in the second quarter of 2021 to be in the range of $19-$20 per kg, a significant improvement compared to the Q1 average selling price of $11.90. While we saw a rapid and significant rise in market ASP during the first quarter, due to GAAP accounting revenue recognition policies, there is a significant time lag from customer order contracting based on market price to polysilicon production and scheduled shipments to products finally arrive at customer site for revenue recognition. Due to this impact, we believe our Q2 ASP will better reflect the recent market pricing trends. Gross profit in Q1 was CNY 118.9 million, compared to CNY 109.5 million in the fourth quarter of 2020, and CNY 56.6 million in the first quarter of 2020. Gross margin was 46.4%, compared to 44.2% in the fourth quarter of 2020 and 33.5% in the first quarter of 2020. The increase in gross margin was primarily due to ASPs. Our polysilicon production cost in Q1 2021 was $6.29 per kg, an increase of 6.3% compared to $5.92 per kg in the fourth quarter of 2020. The sequential increase in cost was primarily due to an increase in the market price of metallurgical grade silicon raw material and lower production volume in Q1 as compared to the previous quarter. As well as exchange rate fluctuations, which had a roughly 2% impact to cost in U.S. dollars. For the second quarter, we expect our production cost to be stable as compared to the first quarter. Selling, general, and administrative expenses were $9 million, compared to $11.2 million in the fourth quarter of 2020 and $8.9 million in the first quarter of 2020. SG&A expenses during the quarter included $2.5 million in non-cash share-based compensation costs related to the company's share incentive plan, compared to $4.5 million in the fourth quarter and $4 million in the first quarter of 2020. Research and development expenses were $1.2 million, compared to $1.5 million in the fourth quarter of 2020 and $1.7 million in the first quarter of 2020. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. As a result of the foregoing, income from operations was $109.2 million, compared to $98 million in the fourth quarter of 2020 and $45.8 million in the first quarter of 2020. Operating margin was 42.6%, compared to 39.6% in the fourth quarter of 2020 and 27.1% in the first quarter of 2020. Interest expense was $7.8 million, compared to $8.3 million in the fourth quarter of 2020 and $6.3 million in the first quarter of 2020. Net income attributable to Daqo New Energy shareholders was $83.2 million, compared to $72.8 million in the fourth quarter of 2020 and $33.2 million in the first quarter of 2020. Earnings per basic ADS was $1.13, compared to $1.01 in the fourth quarter of 2020, and $0.47 in the first quarter of 2020. EBITDA was $128.1 million, compared to $115.1 million in the fourth quarter of 2020 and $63.1 million in the first quarter of 2020. EBITDA margin was 50%, compared to 46.5% in the fourth quarter of 2020 and 37.4% in the first quarter of 2020. As of March 31, 2021, the company had $227.8 million in cash and cash equivalents and restricted cash, compared to $118.4 million as of December 31, 2020, and $120.8 million as of March 31, 2020. The increase in cash balance of $109 million sequentially was primarily a result of positive operating cash flow, offset by capital expenditures related to our Phase 4B project. As of March 31, 2021, the notes receivable balance was $ 38.5 million, compared to $ 0.2 million as of December 31, 2020, and $ 4.4 million as of March 31, 2020. As of March 31, 2021, total bank borrowings were $ 222 million, of which $ 100.4 million were long-term borrowings, compared to total bank borrowings of $ 193.7 million, including $ 123 million of long-term borrowings as of December 31, 2020, and total borrowings of $ 265.6 million, including $ 149 million of long-term borrowings as of March 31, 2020. For the three months ended March 31, 2021, net cash provided by operating activities was $ 159.2 million, compared to $ 31.1 million in the same period of 2020. The strong increase in operating cash flow compared to last year was primarily due to higher net income, as well as customer prepayments related to our long-term supply agreements. For the three months ended March 31st, 2021, net cash used in investing activity was $ 79.9 million, compared to $ 12.9 million in the same period of 2020. The net cash used in investing activities in 2021 was primarily related to capital expenditures on the company's Phase 4B polysilicon expansion project. For the three months ended March 31st, 2021, net cash provided by financing activities was $ 31.7 million, compared to net cash used in financing activities of $10 million in the same period of 2020. That concludes our prepared remarks. Operator, we will now open the floor to questions from the audience. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, press star then two. At this time, we will pause momentarily to assemble our roster. Our first question is from Gary Zhou from Credit Suisse, g o ahead. Hey, hello, management. Thank you for taking my questions. Firstly, congratulations on the record high quarterly earnings. I have three questions from my side. First is, can management share with us your latest polysilicon ASP outlook for the second half of this year and also possibly for next year? Secondly, I want to ask for the latest progress of our Xinjiang Daqo IPO, and if possible, what kind of evaluation or market cap we expect to get from the A-share market. Certainly, given the very likely kind of a record high profits and cash flow we are going to get this year, how do we think of the further capacity expansions into the next few years? Thank you. Okay, Gary, t o answer your first question, the ASP currently, you see the polysilicon ASP go up very fast. As you can see that, this week, our, you know, a small order reached to even more than $20 per kg. We believe the month of June, the selling price also will higher. That's why we're given second quarter, the average ASP is around $19 -$ 20. That should be compared our Q1 is $11.09, a bigger jump. That will affect our gross margin, bottom line. In second quarter, we got a bigger improve. The reason is because, you know, for the second half of this year, the ASP, you know, what's the trend? Basically, you know, the you know, the poly, it's very difficult to forecast, I think, the peak price. You see, our wafer customers will continue to buy as their operating cash flow remains positive. That's what I say, you see, the peak will go to until the wafer industry, you see, the average, the gross margin will go to breakeven. Right now, as you see that last week, the wafer price continue go up. That's why it's difficult for me to give you a forecast of polysilicon price. I think, you know, the polysilicon price will continue to go up in the second half of the year, because didn't have any additional polysilicon capacity, you know, new capacity adding in. For the next year, the first half of next year, maybe around 1,010 tons, you know, new capacity come in. If you look, the I think, the wafer capacity continue to expansion. I think by the end of this year, we'll reach around, I think, 450 GW, maybe 450 GW on the wafer capacity. We think, you know, I cannot give you the, the ASP for the, for the next year, but I think the first half next year should be around, I think more than CNY 150 per kg. Second half of the year, because the new, I think, capacity come in, what I think I talked to, you know, industry, other people, we think it should keep, above, you know, ASP above like CNY 120 per kg. Second question about, you know, our stock market listing, and we cannot guarantee the timetable. The reason is a lot of uncertainty in China, you know, capital market. We have, you know, update our Xinjiang Daqo A-share financial Q1 financial data, and also the first half of this year estimates to Shanghai Stock Exchange last week. We think maybe this week will be, you know, released to public very soon. We are waiting to start the registration process with CSRC. The registration process is expected to be completed within 20 week working days after CSRC officially accepts our documents. After completion, I think the registration completion of the registration with the CSRC, we can, you know, starting to listing proceeding. That take maybe around, you know, one month. Basically, you know, if everything goes smooth, I think we can be listing maybe early July. For the valuation, it is difficult for me to tell you the valuation because the Chinese capital market, they have a special, I think, you know, the price determining mechanism. We think, you know, for from our side, we hope, you know, the IPO, the shareholders can make money, you know, make money. Definitely, I think this year, the financial results plus next year financial results can support our, I think, the future after IPO, the price maybe continue to go up. The third question about the cash flow. Because I think if you look, you know, this quarter, I think, the earning cash right now and the cash equivalents, even risk cash, almost CNY 227 million in hand. We continue, you know, have some like CNY 400 million deposits, long-term, term contract deposits we received by the rest of the year. If you look, our Q2 financial results plus second half of the year financial results, the cash flow, operating cash flow, I think flow in is very higher. We very confident, even without the stock market listing, we can, you know, to support our 4B continue to expansion. By today, you see our 4B total investments is estimated around like CNY 3.6 billion. I think we already paid CNY 1 billion. I think the CapEx for this year will pay, I think 4B, more than, I think, CNY 3 billion we will pay this year. Maybe only CNY 600 million- CNY 700 million will leave to next year, 2022-2023. Basically, I think everything so far is very, I think, you know, is very good business. Gary? Thank you, Mr. Zhang. This is very helpful, and I'll have some. Thank you. Great. Thank you, Gary. Again, if you have a question, please press star then one. This concludes our question and answer session. I would like to turn the conference back over to Kevin He for closing remarks. Oh, wait, we have two more. I'm sorry. The next question comes from Kim Pao from ROCIM. Go ahead. Hi. I missed the your price guidance for the second half of 2022. Would you mind repeat it again? I have a second question after. Okay. The price Okay. The price guidance for 2022. Okay. Basically, you know, I cannot give you the guidance, okay? Based on my personal knowledge, and we talked to, you know, the industry people, we believe, you know, even in the second half of next year. The reason is because we've expansion, capacity continue expansion and also the industry, the final ending products, you know, the module, I think the market is very prospective. We believe the ASP still about CNY 120 per kg. Okay. In the second half of 2022? Yeah. Okay. My second question is, the Your realized price and the lag time between the realized price and the market price. Given the fact that right now we're seeing market prices at maybe CNY 150- CNY 160 per kg, and our realized price for second quarter, you guided at maybe $19-$20 U.S., which is probably like still below the current market price. Generally, how your realized price for the quarter represents a lag time normally of how many months from the market price? Okay. Usually, I think, Is there a rule of thumb that I can follow?[crosstalk] Yeah, Kim. I think first of all, if you look at the market price, okay, basically we have to I think to clear to, you know, you have two price. One is you call market price, another is SP. When we're talking about market price, oka right now, let's say you know, one day CNY 190-CNY 200 per kg. That's the top small, I think, mono silicon grade. That's the goodest price, okay? When you're selling that, so bigger chunk maybe will be only like, you know, let's say, CNY 190 is a small, I think, re-import, you know, good mono, I think, you know, perfect, I think, silicon materials. The second is the bigger chunk. The bigger chunk is, you know, it take CNY 2 away, so it's like CNY 188. Popcorn. Popcorn. The popcorn may be CNY 4 per kg, you know, lower. SP may be around CNY 6 per kg, down. Okay. First of all, to answer your question. Basically, what are we talking today, if we're going to market, you know, contract, you know, I think June, next week we're going to contract. Basically, their price is not SP, okay? Their price is within tax, is the top price. For example, if June the price is CNY 190, SP only maybe is CNY 100, it take CNY 6 away. It is CNY 184 is the SP. Okay. First of all. Second, the price is one month lag behind. Usually, if you see the Q2, we giving you guidance. First of all, the ASP is $19-$20. That mean without tax it's ASP to recognize revenue. The market contrary, the price when you talk in second quarter, because The one month delay. That's why in April, the shipments, the price is determined by March. The March price actually is the April shipment products. The revenue recognized also in April. It's a one-month delay. That's why is a little delay. Okay. Did I. Okay. I answer your question? Yeah. Yeah. Next month, we determine it right now. Next month may be jumping another $20. CNY 20 per kg. Because price change so quickly, it's difficult for us to tell you what's the ASP, what's the, you know, the price. We have to based on whatever the actual contract we signed and we deliver. So far, I think the price is going to stable right now is around CNY 190 -CNY 195, I think, CNY per kg. Well, CNY 190-CNY 195 includes VAT, right? Yeah, yeah. Yeah. Of the- Including the- VAT. VAT. Kim, please always be aware that in the industry, when we talk about the price in RMB terms, it's always VAT included. When we say U.S. dollar terms, it's always VAT excluded. I'm just wondering, when I look at PV InfoLink, the price that they quote there, in RMB, they're normally ex VAT or with VAT? With, with- With the VAT. RMB. With VAT, yeah. Okay. Okay. With the VAT- How much, how much do you think our cost would go up in the next quarter or two? Okay. Basically, if you look our Q2, our cost go up 4%. The major reason is because. Q1. Q1 compare, I think Q4 last year, go up 4%. The major I think is the raw material, silicon powder. Secondly is the steam price, which we increased, I think, The price increased in Q1, and we signed with the supplier. We think, you know, in the future, the price will be stable because we didn't see a further, you know, the silicon powder continue to go up. Basic seasonally, they should be stable, even go down. Basically, I think the cost will be stay, I think the same. Only you have to consider, you know, the foreign exchange rate effect. Okay. Thank you very much. Great. Thank you. Our next question is from Philip Shen from Roth Capital. Go ahead. Hey, guys. Thanks for taking my questions. The first one is on pricing, from a different angle. You know, with the substantial rise in pricing for polysilicon, are you starting to see demand slow down anywhere in the value chain? You know, whether it's wafers or, you know, further down or even for polysilicon, is there any talk of at all that there's a slowdown in demand? What's your latest outlook for China demand in 2021 in terms of gigawatts? You know, what's the range and perhaps, how does that compare versus what you were thinking back on the Q4 call? Has that changed either lower or higher? Thanks. Okay. First of all, I think, you know, Philip, it's difficult for me to, you know, give you the forecast on the price today. The mechanism, you have to know that. For now on to middle of next year, I think for the ending market, for this year, for example, maybe globally, I think forecast is around like 165 GW, 170 GW. The total demand for silicon is around, I think, 40, 55,000 tons. You need to plus some inventory. Right now, the all supply right now is 50, no, I'm sorry, 550,000 tons. Right now, all supply is 500,000 tons there. The shortage is there. Second is the polysilicon price is driven by the capacity of the wafer. The wafer prices continue to go up. That's why silicon prices continue to go up. I think the peak should be wafer. I think the gross margin go to breakeven. I think silicon price may be, you know, starting to turn around. I can't tell you know, when will happen. The reason is because the wafer producer, the major wafer producer right now in the industry, they continue to increase the price almost, you know, every month, you know, or several weeks. You ask me, then you should ask, you know, will the wafer continue increase price, can selling or not? I think the market is still is there because high efficiency, high output, you know, watts, the panel, I think you can sell in high price. That's why today China market is accepting, you know, the module, I think price CNY 1.8, CNY 1.9 per watt. The polysilicon only account for maybe 13%-15% of the module price. Only account for 7%-8% right now, maybe 9% of total investments on the, you know, the power, the solar power station, you know, installation. Basically, I think, the market is continue can driven this price go up. I cannot tell you when and how, but I can tell you is by the middle of next year, the poly, I think supply is still, poly are still tight. Supply is still keep in the high, I think range. That I can answer to you. Second question you said about this year. China's market definitely right now is starting to hot. This year, China may be around 65 GW, even to 70 GW. The global market, I'm not sure. Maybe, you know, 120 GW, 130 GW. I very, you know, optimism. Globally, this year, maybe around 180 GW, 190 GW. Philip. Okay. Thank you, Longgen. My next question is on your outlook for 2021. I think you said you're sold out. Actually it's more about 2022. Can you talk about how much of your expected production has been tied up with long-term customer agreements for 2022, 2023, and maybe even 2024? You know, when do you think you'll be able to lock up all of 2022 capacity? Do you think that might happen soon? Or do you think that you'll keep some production or capacity available for the spot market? I think after we signed the long-term contract with JinkoSolar last week, I think we locked all our, you know, production output this year and next year. Basically next year are based on, you know, we can starting Phase 4B production trial production November this year. Can reach the full capacity around in Q1. Basically based on next year is, you know, 120,000 tons. Basically the long-term contracts right now, this year is already over 80,000 tons. Next year is, I think around like 120,000-130,000 tons. Basically right now we stop, you know, signing any long-term contracts for this year and next year. For year 2023, right now locked I think 70,000 tons. I think year 2024, 2025, and together is also around 80,000 tons. That's we right now locked our long-term contracts. Especially I think for the contracts we signed recently, we collect, you know, 6% based on market, I think as deposits to guarantee in the future, you see, we can lock those amounts. Okay. Thanks for that. Back to the China listing. It seems like, maybe the requirements for the listing have been tightened or, you know, there's been a slight delay in the process. Can I know you answered the question earlier, but can you talk about the timing you think now for the actual listing? Do you think it becomes complete by the end of Q2, or is there a chance that it goes into Q3? We've seen that there might be some challenges maybe due to something about increased pricing or increased R&D spending. Just curious if you might be able to comment on that as well. Thanks. I think, you know, it's not, I think the issue is not the what you mentioned, R&D or other stuff. I think first we have to update right now the, I think, Q1 financial data. I think actually we updated last week. We need waiting for Shanghai Stock Exchange to review those figure, then public maybe within one week or soon. I think, we believe based on our knowledge, I think we can, you know, starting registration definitely by end of this month. We can starting to do that. We believe, I think we can listing, finish the listing, you know, registration and the listing, you know, by the end of July. Yes, some uncertainty because we are the first, you know, U.S. listing company and, you know, to listing the subsidiaries in China. We also face questions and go through. So far we go through everything. I think, we believe, we can finish, I think early third quarter. Okay. That's really helpful. Thank you, and best of luck, obviously with that process. As it relates to CapEx, you know, with the rising input costs, not only in solar but just globally, do you expect that to impact your CapEx for Phase 2B? What is your current expectation for CapEx for 2021 and 2022? Okay, I think a regular CapEx maintenance, I think, maybe Ming can tell you. You know, for Phase 4B total right now, you see, we almost finished. I think, total investment is around CNY 3.6 billion. We almost, you know, finish everything in the contract. I think, excluding, I think around CNY 300 million didn't sign the contract. Basically, I think we're pretty sure it's under CNY 3.6 million. Of which I think we will pay this year maybe around CNY 2.8 billion-CNY 2.9 billion, we'll pay it by end of this year. Leave around CNY 600-CNY 700, we'll pay next year or even the year of next year. That's, you know, 10% is a guarantee. One year after our, you know, smooth run the production. Basically, I think, you know, I just said, without the stock market IPO, our inside cash generate can, you know, support for 4B. Basically, if we can raise more money from IPO, basically, you know, the IPO money, we can, you know, continue to future expansion, the capacity. The annual maintenance, maybe Ming can tell you know, how much Capex, you know, CapEx every year. The regular. The regular maintenance CapEx is only about $30 million or so per year. Okay, great. Thanks. I may have missed it, but what's your expected quarter for maintenance this year? Is it Q3 or Q4 or, yeah, what's your latest view? Thanks. I think we already finished, I think, one production line. Rest of, I think, four production line we're starting in June, July, August, and September. Major work happened, I think, occurred in, I think, in Q3. Okay, great. It'll be Q4, yeah. Thanks for the question. Great. Okay, thanks, Philip. Our next question is from Dora Liu from JPMorgan. Go ahead. Hi, this is Dora. I have two questions. The first is regarding the inventory level. Could you share with us the current inventory level of Daqo? How about the industry average level? The second question is regarding the N-type polysilicon. I think Mr. Zhang just mentioned that Daqo started the commercial shipments of N-type polysilicon to major customers. I'm just wondering what is the current mix or percentage of N-type product of our polysilicon output. Thank you. Okay. First of all, I think maybe you know, I just answered. Ming, maybe you can, you know, adding more, okay? Compare the Q4 is 2,491. Actually, we dropped down 1,196. That's why we recognize revenue, the quantity is higher than our production. Basically, the industry, we don't know other people. Basically, you know, we always, you know, keep our inventory as lower as possible, okay? If you look at our history, our inventory is below, I think 3,000 metric tons. You know, never higher than that. Because we are chemical industry, is continued production. We don't want to keep any inventory. Basically, we also not go ahead to speculate the SP, the selling price. That's why whatever we produce, I think we're going to sell. Okay? The first, that's first question. Second question about n-type. Today, we have four major clients right now try use our n-type products. The major customers may be taking around 200 tons per month. Right now, I think, every month we're selling n-type, maybe less than 1,000 tons. The Q1, the total quarter is, I think around 2,000 tons is n-type. The SP of n-type actually is not higher, only CNY 2 higher than the regular, I think, p-type products. The reason is because, you know, right now the yield is still lower. We don't want to differentiate, you know, the price difference. We just want to stimulate the client to use our N-type products. As for the future, as you can see that our downstream clients, for example, like LONGi, like JinkoSolar, they already, I think, the N-type cell production line is already starting to commercial running. We think the N-type silicon, the demand will more and more. Basically, you know, besides Wacker, OCI, I think domestic producer, I think we are one of the, I think, the biggest one right now provide N-type silicon today. Dora, back to you. Thank you so much. Yeah, that's quite helpful. Thank you. I'll pass on. Great. Thank you. Our next question is from Tony Fei from Bank of China International. Hi, management. Thanks for your time. This is Tony from BOCI. I just have one follow-up question on your on the competition landscape. Last week, we all noticed that East Hope announced they will build a 250,000 ton project in Ningxia province. That's quite huge. Of course, we don't know when or even whether they will finish it, but let's assume for the time being that the project gets materialized. How would it affect Daqo's future expansion plans, I mean, beyond Phase 4B? Thanks a lot. Tony, first of all, we not go ahead and comment, you know, our competitors, because competitors also friends. Okay? Yes, we also see Now basically, you know, and you know, our competitors definitely I think the total, the market supply will affect our in the future, you see, our continued expansion. We need it based on the market supply and demand. In the future, I think, you know, the market ending and the market, you know, the future, especially I think, the module in the future, the selling situation. We see the market is so big. Some of our competitors, even, you know, some new, I think, comer, maybe will invest money in this industry. You know, because silicon industry is a chemical industry, it's long-term investments, security and also the quality technology and, you know, priority processing technology, all these, I think experience add together, you see. The quality is most important. Safety also is most important. We are focused on, you see, our quality and try to reduce our cost. We try to make ourselves, you know, to differentiate ourselves from other people is to, I think, you know, to make, I think, higher gross margin than the industry average, I think, to survive. I think that's our, you know, because on Phase 4B, we want Phase 4B to start full production by November of this year to full capacity running by Q1 next year to, I think, make sure next year we can produce more than 120,000 tons. Tony? Okay. Thank you, Longgen. That's very helpful. Our next question is from John Segrich from. You independently certify that there is no forced labor, you know, at Daqo or even in the entire supply chain. There's been two reports in broad daylight citing that your raw material suppliers have direct ties to XPCC, that you buy your power from companies that are tied to XPCC. How do we get through this, and how do you guys not get subjected to a potential ban of your products in the U.S. or the EU? What steps are you gonna take? Okay. I think, John, first of all, we will not let politics in the way. We are continuing to focus on our own business to continue to expansion and produce high quality polysilicon to support the global, I think, the green energy solar industry. We did our, you know, I think, the best efforts. We hosted a site tour with, you know, many analysts and investors, also media from home and abroad from May 11 to 13th. We also, I think, put the video on the internet to let other investors to see that. I think it's just like your judgment. We have reiterate many times of our zero tolerance against, you know, forced labor. Basically, we want to take this opportunity to show our, you know, investors what is advanced tech, you know, polysilicon plant looks like and how we operate it and manage it. In the future, we don't know because we cannot involve any political, you know, issues. Even, you know, in the future, maybe we need a, you know, high third party do the audit. We cannot answer that question. Okay. That's it. Who are your two main suppliers of silicon, Hoshine and SOCOS? Excuse me? Who are your two main. I didn't follow. Suppliers of raw silicon? SOCOS and Hoshine? Oh, you mean the silicon powder, right? Yes. Yeah. The silicon powder one is from, I think, SOCOS. Another is from Hoshine. Hoshine. Yes. Hoshine. Okay. But those people- If both of those were tied to XPCC, would you stop buying? Listen, John, those providers only provide us the silicon powder, but they also buy a silicon nuggets, you see, from all around the world. Okay? They mix together. They're going to produce powder, silicon powder. For Hoshine, they not only supply the silicon powder to us, they also supply silicon powder to Wacker OCI. That's the question I answer to you. That doesn't change whether or not if they use forced labor, you would buy from them. I mean, just because everyone buys doesn't mean that it's okay. First of all, I already said we are zero tolerance for the forced labor. Okay? Okay. I'm not comment that. Also, I can tell you, they also selling polysilicon powder to overseas. For example, OCI Wacker also bought the silicon powder from them. I understand that. That doesn't mean that they don't use forced labor. I'm just curious. You've seen Apple cut off suppliers. I know, John. we are- Will you cut off suppliers that are proven? You have to prove. Sorry. We don't see any clear evidence of our suppliers be involved into the forced labor issue. Okay? Okay. If we see any clear evidence, we definitely take the stance of zero tolerance. Is it clear? Okay. You would drop them as a supplier. Yeah. Perfect. Okay. Yeah. It's an important issue that needs to be addressed. Yeah. Yeah. Our next question is from Colin Yang from Daiwa Securities. Go ahead. Hey, this is Colin. Just one quick question about our future capacity expansion of the 4B. Is the location has been decided, whether that is in Xinjiang, Inner Mongolia or another places? I'm curious about our future financing plans for our future expansion. As you mentioned, like, if there is any left money from the stock market IPO, it could be continued fund for the future expansion. What if it's not enough? Could we consider another round equity financing? Thank you. Okay, Mr. Yang. I think basically right now, if you look at our Q1 financial statements, we have enough, I think, you know, inside cash flow to continue to support our 4B to, you know, finish our 4B. Even by the end of this year, without stock market, you know, IPO proceeds, we can run very well. By the end of this year, the cash flow. Basically, if we can successfully run the IPO and the IPO planning, I think right now as the prospectus, I think we raise CNY 5 billion and maybe more, okay? We don't know. Maybe less. I think, basically after we finish the IPO, yes, we will throw the board and to basically we have to evaluation the market situation, demand and supply in future. I think, you know, other competitive expansion. We will look in some place. Yes, definitely. I think, you know, besides Xinjiang in China, other place, we have looked at four places, for example, like Mongolia, Yunnan, Gansu, even Shanxi province. Even abroad. Yes, definitely at that time we will make decision. We will let you know. Thanks v ery clear. Thank you very much. Great. Thank you. Our next question is from Chao Ji from Goldman Sachs. Go ahead. Oh, hi. Thank you for taking my question. I hope to ask about regarding the N-type polysilicon that you mentioned that you released are the commercial shipment. Can you maybe share your production cost level for the N-type? What is our kind of effective supply capacity for the N-type kind of poly? If the demand, downstream demand pick up quickly, how much, how can we kind of reshuffle our kind of supply mix? Do we need to do a little bit upgrade to our existing kind of facility in order to increase the mix of the N-type poly? Thank you. Okay, I think that's a good question. You see, so far right now, I think, in China, We have major, I think, we have a producer. They're only starting, I think, you know, maybe one production line, N-type production line. As you see the announcements like LONGi, JinkoSolar and also Zhonghuan and other player. Basically right now the quantity I think is lower. Their producer also is lower. That's why they can use, I think, import silicon poly. For example, you know, from Wacker, OCI and also like, you know, the high quality produced domestic like us. I'll mention that in Q1 we sold I think around less than 2,000 tons N-type polysilicon. We can actually, I think, you know, produce as right now around, you know, 20%-30% of our poly is N-type. It's no problem to us. Based on right now the equipment and the technology, we even can increase N-type, you know, quickly, I think to even 40%-50%. Based on the market right now, we think in the future, the N-type will become more and more, but it's the transition period. It's, you know, take time. We, we still think it take, you know, three to five years, maybe N-type will reach to, you know, 60%. Definitely I think P-type is still there. The reason is because of cost effective and also I think other, you know, coordination, I think. Basically I think the market we see, you know, the N-type in the future, they can increase the Excuse me. The efficiency on the cell efficiency they can reach you know about 25%. Compare the PERC right now is 22, 23. Definitely I think it is a big, I think a jump, also on the module side and to increase the output watts, you know, per panel to reduce the total life cost per watt. That's most important. I think that's the future. I think one of the future. I think next gen, you know, revolution, technology revolution. We are ready, I think, prepared for it. For the cost, I think, you know, today is not, you know, We just select the N-type actually basically, you know, classical the N-type, you know, from, you know, the P-type. It's cost even, the same, you know. It's not a big difference. Understood. Super clear. Thank you. Great. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Kevin He for closing remarks. All right. Thank you everyone again for participating today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you and bye-bye. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.