Good day and welcome to the Daqo New Energy Second Quarter 2025 Earnings Conference Call. All participants will be in a 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 a touch-tone phone, and to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jessie Zhao, Director of Investor Relations. Please go ahead. Hello everyone, I'm Jessie Zhao, the Investor Relations Director of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the second quarter of 2025, 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 Deputy CEO, Ms. Anita Zhu, our CFO, Mr. Ming Yang, and myself. Today's call will begin with an update from Mr. Xu on market conditions and company operations, followed by a translation from Mr. Xu for Ms. Zhu, 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 want 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 contained in 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 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. Now, I will turn the call to our Chairman and CEO, Mr. Xiang Xu. Mr. Xu, please go ahead. [Foreign language]. [Foreign language]. Thank you, Mr. Xu. Hello everyone, this is Anita, and I'll now deliver on our CEO, Mr. Xu's remarks. The solar PV industry faced continuous challenges in the second quarter of 2025, with market prices across the solar value chain declining due to industry overcapacity and high inventory levels, remaining below cash cost levels. As a result, Daqo New Energy recorded quarterly operating and net losses. Nevertheless, we maintained a strong and healthy balance sheet with no financial debt. As of June 30, 2025, the company had a cash balance of $599 million, short-term investments of $419 million, bank notes receivable of $49 million, and total fixed-term bank deposit balance of $994 million. In total, our financial bank deposit and investment assets, readily convertible into cash if needed, stood at $2.06 billion, providing us with ample financial liquidity. With no financial debt, our solid financial position brings us confidence and strategic resilience to navigate the current market downturn and remain well positioned for long-term opportunities. On the operational front, the company operated at a reduced utilization rate of approximately 34% of its main flow capacity in response to challenging market conditions and weak selling prices. Total production volume at our two-hostel facilities for the quarter was 29,012 metric tons, within our guidance range of 25,000 metric tons - 28,000 metric tons. Towards the end of the quarter, Chinese authorities intensified efforts to curb disorderly competition. We proactively scaled back new sales orders in anticipation of future price recovery. Accordingly, our sales volume for the quarter decreased to 18,126 metric tons from 28,008 metric tons in the first quarter. Due to lower utilization across our facilities, idle facility-related costs for the quarter were approximately $1.38 per kilogram, primarily reflecting non-cash depreciation expenses. On a positive note, the decline in the cost of silicon metal and reduced energy consumption drove our cash costs lower by 4% to $5.12 per kilogram, sequentially, including approximately $0.18 per kilogram related to idle facility maintenance. Overall, total unit production costs decreased by 4% sequentially to an average of $7.26 per kilogram, with lower unit depreciation costs resulting from higher production. In light of the current market conditions, we expect our total polysilicon production volume in the third quarter of 2025 to be approximately 27,000- 30,000 metric tons. As a result, we anticipate our full year 2025 production volume to be in the range of 110,000 metric tons- 130,000 metric tons. During the second quarter, the solar PV industry remained in a cyclical trough, although proactive initiatives started to emerge toward the end of the quarter. On the demand side, China experienced a surge in installations under market-based reform policies and set a new global record with a staggering 93 GW of new solar power capacity added in May. However, installations plummeted to 14 GW in June, falling from loading earlier this month, ahead of the May 31, 2025 cutoff date for new projects. Poly market prices trended downward during the quarter, falling from RMB 39 to RMB 45 per kilogram in April to RMB 32 to RMB 35 per kilogram by the end of June. According to industry statistics, overall industry polysilicon production for 2025 year-to-date has been running below overall demand and consumption, with monthly supply at approximately 100,000- 110,000 metric tons. As a result, industry inventory decreased by approximately 30,000- 40,000 tons between January and July, leaving overall industry polysilicon inventory lower than at the beginning of the year. Heading into the third quarter, Chinese authorities have demonstrated increased determination to address irrational competition and energy overcapacity, with the NDRC initiative taking a lead goal in sectors such as solar PV. On June 29, an article from China's official newspaper, People's Daily, highlighted the issue of oversupply and disruptive competition in the solar PV industry, calling for measures to curb business competition and promote high-quality development. On June 1, President Xi emphasized the need to regulate disorderly low-price competition and phased out outdated capacity at the Central Financial and Economic Affairs Commission meeting. The following day, the Ministry of Industry and Information Technology convened a symposium with 14 solar PV companies to accelerate the industry transition toward high-quality growth. Most recently, on July 24, government authorities released a draft amendment to the price law, representing a significant step towards strengthening market supervision and deterring unfair pricing practices. The draft clarifies criteria for identifying unfair pricing behavior, such as low-price dumping, and strengthens legal accountability for price-related violations. As a result, polysilicon stock sales prices have rebounded in July and polysilicon future prices surged significantly, supported by favorable factors such as expected higher stock holds and simultaneous increases in downstream product prices. For reference, the 2506-09 contract rose sharply from a low of RMB 30 per kilogram in June 2025 to a record high of RMB 55 per kilogram in July 2025, the strongest level since the solar PV industry continues to shine on long-term prospects. In the medium term, it believes that the combined effects of industry self-discipline and government anti-involution regulations will foster a healthier and more sustainable industry. In the long run, as one of the most effective and sustainable energy sources globally, solar power is expected to remain a key driver of the global energy transition and sustainable development. Looking ahead, Daqo New Energy's wealth positions capitalize on the long-term growth in the global solar PV industry and strengthen its competitive edge by enhancing its higher efficiency and technology and optimizing its cost structure through digital transformation and AI adoption. As one of the world's lowest cost producers with the highest quality entire product, a strong balance sheet with no financial debt, we're confident in our ability to weather the current market downturn, capitalize on market recovery, and emerge as a leader in the industry positioned to capture further growth. Now I'll turn the call to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead. Thank you, Anita, and hello everyone. This is Ming Yang, CFO of Daqo New Energy. We appreciate you joining our earnings conference call today. I will now go over the company's second quarter 2025 financial performance. Revenues were $75.2 million compared to $123.9 million in the first quarter of 2025 and $219.9 million in the second quarter of 2025. The decrease in revenue compared to the first quarter of 2025 was primarily due to a decrease in sales volume. Gross loss was $81.4 million compared to $81.5 million in the first quarter of 2025 and $159 million in the second quarter of 2024. Gross margin was - 108% compared to - 65.8% in the first quarter of 2025 and -7 2% in the same quarter of 2024. The decrease in gross margin compared to the first quarter of 2025 was primarily because sales volume decreased, while idle facility costs remain relatively fixed. The G&A expenses were $32.1 million compared to $35.1 million in the first quarter of 2025 and $37.5 million in the second quarter of 2024. The G&A expenses during the second quarter included $18.6 million in non-cash share-based compensation costs related to the company's share incentive plan, compared to $18.6 million in the first quarter of 2025. The decline in G&A expenses in the second quarter compared to the first quarter is a result of lower staffing costs as well as lower sales expenses. R&D expenses were $0.8 million compared to $0.5 million in the first quarter of 2025 and $1.8 million in the same quarter of 2024. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter. As a result, the foregoing loss on operations was $116 million compared to $114 million in the first quarter of 2025 and $195.6 million in the same quarter of 2024. Operating margin was - 153% compared to - 92% in the first quarter of 2025 and - 89% in the same quarter of 2024. Net loss attributable to Daqo New Energy Corp shareholders was $76.5 million compared to $71.8 million in the first quarter of 2025 and $119.8 million in the second quarter of 2024. Loss per basic ADS was $1.14 compared to $1.07 in the first quarter of 2025 and $1.81 in the second quarter of 2024. Adjusted net loss attributable to Daqo New Energy Corp shareholders, excluding non-cash share-based compensation costs, was $57.9 million compared to $53.2 million in the first quarter of 2025 and $98.8 million in the same quarter of 2024. Adjusted loss per basic ADS was $0.86 compared to $0.80 in the first quarter of 2025 or $0.50 in the same quarter of 2024. EBITDA was - $48 million compared to - $48.4 million in the first quarter of 2025 and - $145 million in the second quarter of 2024. EBITDA margin was - 64% compared to - 39% in the first quarter of 2025 and - 66% in the second quarter of 2024. Now on the company's financial condition. As of June 30, 2025, the company has $599 million in cash, cash equivalents, and restricted cash, compared to $792 million as of March 31, 2025, and $998 million as of June 30, 2024. As of June 30, 2025, short-term investments were $418.8 million compared to $168 million as of March 31, 2025, and $219.5 million as of June 30, 2024. As of June 30, 2025, the notes receivable balance was $49 million compared to $62.7 million as of March 31, 2025, and $80.7 million as of June 30, 2024. Notes receivable balance represents bank notes with maturity within six months. As of June 30, 2025, the balance of fixed-term deposits within one year was $960.7 million compared to $1.12 billion as of March 31, 2025, and $1.17 billion as of June 30, 2024. Now on the company's cash flow. For the six months ended June 30, 2025, net cash used in operating activities was $105.4 million compared to $278.6 million in the same period of 2024. For the six months ended June 30, 2025, net cash used in investing activities was $342.7 million compared to $1.7 billion in the same period of 2024. The net cash used in investing activities in the first half of 2025 includes $87.8 million in the purchase of PP&E and $255 million related to purchase of short-term investments and fixed-term deposits. For the six months ended June 30, 2025, net cash used in financing activities was $32,000 compared to $43 million in the same period of 2024. That concludes our prepared remarks. We will now open the call to Q&A from the audience. Operator, please begin. Thank you. We will now begin the question and answer session. To ask a question, you may press star and then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and two. At this time, we will pause momentarily to assemble our roster. Our first question today will come from Alan Hon of JPMorgan. Please go ahead. Thank you for letting us ask the questions, Anita. I have two questions. The first one is on the policy development. I've been choosing to share some columns on the latest development on the legislation on the consolidation fund or other policy development right now. Number two is on poly prices. I understand like due to the price law, I mean the poly prices increased towards the $45- $50 level. At the same time, I mean the sequential demand supply at China inventory is also increasing. How should we think about like the poly prices in the next three months? Thank you. [Foreign language]. [Foreign language]. [Foreign language]. [Foreign language]. Okay, thank you, Alan. Regarding the latest development in the industry, on August 19, the MIIT, also the NDRC, along with the Ministry of Social Affairs and State Administration for Market Regulation and the National Energy Administration, jointly held a symposium on the solar PV industry. During that meeting, a number of government officials, together with a number of solar PV manufacturers and the 11 power companies, as well as the CPIA and relevant local industrial and information technology departments, all attended the meeting. Basically, during the meeting, they again reinforced that we have to curb the irrational competition of selling below cost. First, we have to strengthen the industry regulation through strengthening the management of investment in the PV project and promote the gradual phasing out of outdated production capacity through market-oriented and law-based approaches. Second, they aim to curb low prices in the orderly competition through improving the price monitoring and the product pricing mechanisms to crack down on irregular practices such as selling below cost. Lastly, to standardize the product quality, to combat practices such as reducing the quality control or things like infringing IP rights. I think during the meeting, the essence is to support the industry self-regulation and to gradually work towards forming this buyout SPV for acquiring outdated capacity in the industry. Regarding prices, it will really depend on how this buyout SPV will roll out because we're still under the progress of working out the details of such SPV. It's hard for us right now to say exactly how prices will develop in the coming months. I think, as we can see, recently, prices have increased, especially in the futures market, and the expectation of rising prices. Also, if we look at the latest solar project that could work as a sign of the industry development, the China Guardian Corporation had a 20 GW project. From that, the market prices were around RMB 0.71 per watt to RMB 0.75 per watt. It has really increased, and it's way above the floor prices for modules right now. We believe that has passed through to the upstream poly sector. I hope that answered your question. Thank you. That answered my question. I'll pass it on. Thank you. Great. Thank you, Alan. Our next question today will come from Philip Shen of ROTH Capital Partners. Please go ahead. Hi, this is Matt Ingraham on for Phil. Thank you for taking our questions. Following up on the past question, how sustainable do you think that higher pricing can be with the anti-involution initiatives? Secondly, what's your outlook for industry production volumes, and when would you expect to see the inventory levels be healthy again? Give us a minute. We're going to translate for Mr. Xu. [Foreign language]. [Foreign language]. [Foreign language]. [Foreign language]. Okay, so first of all, I think one thing that's clear is that there has been consensus that selling below cash cost is unsustainable and very detrimental to the overall industry development. In our view, that's disruptive to the healthy development of the industry and hence poses a legal risk. We would be enforcing the regulations and the laws. We think that all the industry players are on the same page regarding that. In terms of production volume, I think going forward in the next couple of months, it will be around 100,000 metric tons to around 110,000 metric tons, relatively balanced with demand. Per month? Per month. Okay, thank you. You kind of talked about, you know, potentially in the past, like acquiring surplus production capacity. Is there an update on that strategy? Do you think we could see anything in the near term? Yes, I think we're still under, first of all, we're still under progress for the SPV. I think the whole picture will become more clear in the coming weeks or the coming months. All the industry players, as well as the power companies and the relevant regulators, are all working hard toward coming to a consensus because that would be very remarkable for the industry and could set the tone for similar industries in China, such as EV and also lithium batteries. I think they're starting with solar PV, which is why they have mentioned about solar PV in the news article by People's Daily on June 30, 2023. We're all working very hard towards coming to a result. We are quite optimistic about that because that's what the industry should be. That's good for the overall development of the industry because right now, selling below cash cost, first of all, none of the company is making a profit. Second of all, internationally, they have been viewing China or accusing China of anti-dumping. That's not something that we want to see as a whole. Thank you. I'll pass it on. Great. Thanks, Matt. Our next question today will come from Alan Young of Jefferies. Please go ahead. Thanks a lot for taking my question. Our question is about the buyback the company just announced. It's showing that the company has approved a $100 million share repurchase program. Wonder what's the thinking behind that and also what's the timeline in the buyback? Thank you, Alan. We actually just authorized this new share repurchase program today in the amount of $100 million until the end of next year. The logic behind this is that we are optimistic about the future of the industry, and we believe we could see a turning point soon. I believe previously, our valuable shareholders have been wondering when we would want to start the share repurchase. The reason why we were hesitant about it is because we believe if we just rely on the market to rebalance supply and demand, it will take a relatively long time of approximately two to three years, given how strong and all the companies who have expanded their capacity this round are. However, we believe that because we are on the same page towards promoting the healthy development of the industry, we are more optimistic about the future or the outlook of the entire industry. We believe that we want to strengthen the confidence of our shareholders as well. That is aligned with our overall strategy. In terms of the overall pace of the share repurchase program, I think that would also be contingent upon the market development. That is definitely the first move we are working towards, strengthening the confidence in the market. I see. Thanks for the clear. Given that the stock price of the A share is actually above the ideal price already, will share price or shareholding reduction on the A share to fund further buyback in USD be back on the table again? Yes, I think that's definitely a consideration given that we have been trading above the IPO issue price, right? Right now, it should be around RMB 30. That's definitely on the table, and we'll consider that. I think how we want to start this program first is the remaining cash on our risk goal right now because previously, we still have a meaningful amount on the risk goal. We will start with that allocation first. Selling our A share to repurchase on the U.S. is definitely back on the table. That's right. Following the question from Alan and also Philip on the consolidation initiative, how do you see yourself in terms of the end game? Like, the amount of volume you will be able to produce. For example, now your guidance is around 110,000 and 130,000 metric tons for the production volume this year. If the consolidation effort is successful, what would you think will be your production volume going forward? I think that depends on a couple of things. Okay, if we calculate the amount of overall capacity that's built, or in the process of being built, that will be around 3.5 million metric tons at least. The production volume of how much we have produced per year really depends on how much capacity is still remaining in the market and the overall demand per year, right? I think the fundamentals behind this action are that the supply would meet the demand per year from now on. I believe that going forward, all the companies will reduce their utilization rate or operate at a utilization rate that would match the demand. It won't be 100% at least in the coming year. I see. Thanks a lot. I will pass it on. Thank you. Great. Thanks, Alan. Our next question today will come from Mengwen Wang of Goldman Sachs. Please go ahead. Hi. Thank you, management, for taking my question. I have two questions, mainly related to the poly price outlook. First, do we have any color on the benchmark production cost to derive the policy-regulated pricing? I don't know, there's a lot of news coming in to talk about the selling price should not be under the production cost. Do we have any more colors on the definition of the production cost? Certainly, as we mentioned, we have been doing well in terms of sustaining the poly price hike. As a result, our shipment volume declined a bit. Going forward, how do we see, how do we balance the price and inventory, the dynamic? That's my question. Thanks. Thanks. [Foreign language]. Okay. Thanks, Meng, for your question. Our view is that the industry will need to sell at a price above the industry production cost. Our understanding is the industry overall, I would say the average "production cost" is probably in the mid-$40 range. Our view is that, because of the Chinese laws and the government policy, that will be the minimum poly pricing that the industry players will be required to sell to its customers. I think if you look at the most recent, both transactional pricing as well as futures pricing, in the high $40s to the low $50s, that is reflective of this new government policy that requires the industry players to sell above production cost. That is our poly price outlook going forward. Yes, to follow up the question, if the poly price stays at around RMB 60 per kilo, and if we don't, our product doesn't sell, like we keep piling up our inventory, how do we see how to, what's our strategy in terms of these kind of situations? I think there will be industry policies and perhaps government policies by the government, but that will require industry supply to balance with industry demand, right? Right. Let's say, just making assumptions, right? If industry demand, say, is 1.2 million tons per year and 100,000 tons per month, then the industry sales and this annual production will be consistent with that kind of demand levels. It will be adjusted so that poly pricing can be maintained at the production costs or above level. To follow up on your question on inventory, I think for a big picture, if people want to manage their inventory, the direction is to manage the utilization rates of the companies so that it will not be over-demand going forward. For us, we will really have to wait to see how the regulation unfolds in the next coming weeks or the next coming months before we can decide what our strategy will be. Also, to add on, I know there are companies who are participating in the futures market. We've also participated a meaningful amount in the futures market just to hedge against risks and to advertise as a strategy. Yeah, thanks, Yang. Thanks, Anita. That's really clear. To sum up, we are expecting some kind of policy to help the industry cut production into September. We have actively engaged in the policy-confused market in order to mitigate the volatility of the policy price, right? We were registered as the first batch of the companies who are allowed to sell in the futures market. Strategy-wise, we're really dependent on how the regulations will come out and how the stock prices will move. Yeah, sure. How about the policy timeline? Is that, shall we expect any meaningful policy kicking into September? We are working towards all of the related parties, including the CPIA, the manufacturers, and the related regulators, are working very diligently towards a result coming out from the continuous meetings. However, we cannot guarantee, but we believe that because everyone is on the same page, we are working towards a result or a proposal coming out. Yeah, sure. That's all for my question. I'll pass it on. Thank you. Great. Thank you, Meng. The next question today will come from Xiang Xu of CICC. Please go ahead with your question. Staff management, this is [Xiang Xu] from CICC. My first question is, I found you lower the sales volume for the second quarter. How's the plan on it? What's the plan for utilization rates in the future? My second question is, I find you keep reducing the production cost besides the reduced cash cost. What other ways are there to reduce the cost? Thank you. Hi. Thank you, [Xiang Xu]. I think for the first question, the reason why the sales volume is meaningful even though the production volume is because prices are really trading at a very low level and below cash cost level. As we are working towards or working out a proposal since I think the first meeting that was hosted by MIIT and NDRC were happening in the second quarter, we were waiting to see how the policies will shift or how much capacity will phase out in the future so that we can adjust our sales strategy accordingly. We believe that, once the regulations come out, if any, we will try to maintain our inventory at a healthy level. I'll follow up. Regarding utilization rate, I think we're maintaining this 30%- 35% utilization rate. It'll be subject to, for example, demand environment and pricing, as well as the industry consensus or industry self-discipline in terms of supply and production. There'll be a balance of those decisions. I think currently, we're maintaining the 30%- 35% utilization rate for now and monitoring industry status and progress. In terms of production cost, I think for Q2, it is slightly lower than Q1. I think it's helped by both the improvements in manufacturing efficiency and, for example, lower energy usage. I think we're lowering the energy usage and lowering the cost. Currently, we're expecting the cost trend to continue to improve for Q3 as well. For example, our current cash cost is approximately, say, $5 per kilogram right now, I think, based on the current metals cost, which is already lower than our Q2 2025 cost. That's the current cost status for the company. Okay. Oh, very clear. That's on my list. Thank you. Okay, thank you. Goodbye. Our next question will come from Gordon Johnson of GLJ Research. Please go ahead. Hey, guys. Thanks for taking the questions. I guess my first question is, it seems like you guys explicitly said you intentionally held back polysilicon cells in the second quarter. Can we conclude from that that you'll sell more in the third quarter? If you could provide some color there. From my calculations, it seems like you're guiding production to increase from 26,000 metric tons at the midpoint in Q2 to 28,500 in Q3 and then 40,700 in Q4. Should we take from that you intend to sell significantly more polysilicon in Q4? I have a follow-up. Thank you. Okay. Thank you, Gordon. First of all, I think the reason why we held back or sold relatively a lot lower than our actual production volume was because it was trading at below cash cost. As we don't want to disrupt the overall industry dynamics, or I should say as the industry has guided that we should not be selling below the production cost, we have adjusted our sales strategy accordingly. Going forward in the third quarter, as you might have seen recently, prices have ticked up. We believe if it's not cutting below our cost, then it makes sense for us to start selling. Like I said before, I think it would really depend on when and how the regulations will come out. We would adjust our sales strategies accordingly in the remaining days in the third quarter, as well as going forward into the fourth quarter. Okay. That's helpful. If I think about you guys said that transactions in the futures market are around the high 40s, low 50s. Based on my calculation, that would suggest the price of around $7.70 for polysilicon USD. Your ASP in Q2 was, you know, 419. I understand you don't have great visibility, it seems like, on what you're going to sell in Q3 until policy is decided. Are you transacting at that price that you highlighted, the high 49s/low 50s levels right now? Thank you for the questions. Gordon, I think that there's two specific goals that the company is trying to achieve, right? One is based on the government policies and the new laws. I think we will sell at above our production cost, for sure. I think the levels indicated are representative of the market current transactional cost. Also, another of our company's sales operation goals is to significantly reduce our inventory at hand, as well, given the current market dynamic and environment where there's opportunity to do that. We will try our best to do that. I guess one clarification regarding pricing is the RMB price that we quote actually includes a 13% VAT. I think you have to divide by 1.13 to get to the actual selling price, ex-VAT, because that's right now, it's roughly maybe RMB 5,000 range or something like that. Right. Does that mean you guys will be gross margin positive in Q3? Thank you. Let me just conclude that we expect to be cash, what's the word for it, generating cash from our sales. Because there's a lot of, I guess, non-cash depreciation costs related to our idle facility because we're only running a one-third utilization. If you remove the non-cash depreciation, I think we're going to generate positive cash margin from sales. Very helpful. Thank you. Thank you. Okay. Good. Thanks, Gordon. Thank you. This will conclude our question and answer session. At this time, I'd like to turn the conference back over to Jessie Zhao for any closing remarks. Thank you, everyone, again for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you and have an awesome day. Goodbye. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your line.