Ladies and gentlemen, thank you for standing by for JinkoSolar Holding Company Limited second quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Ripple Zhang, JinkoSolar's Investor Relations Manager. Please proceed, Ripple. Thank you, operator. Thank everyone for joining us today for JinkoSolar's second quarter 2021 earnings conference call. The company's results were released earlier today and available on the company's IR website at www.jinkosolar.com, as well as our Newswire services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website. On the call today from JinkoSolar are Mr. Li Xiande, Chairman of the Board of Directors and Chief Executive Officer of JinkoSolar Holding Company Limited; Mr. Gener Miao, Chief Marketing Officer of Jinko Solar Company Limited; Mr. Pan Li, Chief Financial Officer of JinkoSolar Holding Company Limited; and Mr. Charlie Cao, Chief Financial Officer of Jinko Solar Company Limited. Mr. Li will discuss JinkoSolar's business operations and the company highlights, followed by Mr. Miao, who will talk about the sales and marketing, and then Mr. Pan Li, who will go through the financials. They will all be available to answer your questions during the Q&A session that follows. Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar's public filings with the Securities and Exchange Commission. JinkoSolar does not assume any obligation to update any forward-looking statements except as required under the applicable law. It's now my pleasure to introduce Mr. Li Xiande, Chairman and CEO of JinkoSolar Holding. Mr. Li will speak in Mandarin, and I will translate his comments into English. Please go ahead, Mr. Li. We are very pleased to have delivered revenue of $1.23 billion and gross margin of 17.1%, as well as a significant increase in non-GAAP net profit quarter-over-quarter, despite very challenging market conditions. In response to the sharp polysilicon price increases in May and June, and there is a certain time gap in the transmission of price increases from upstream to downstream in the supply chain. We quickly increased the external sales of silicon wafers and proactively lowered the production volume of modules. Total shipments and revenues in the second quarter were approximately flat compared with the first quarter, while profits improved sequentially. As prices along the supply chain remain high but relatively stable, we see overall acceptance of module price increases continuing well into the second half of the year. Demand for modules is gradually resuming. Our module production volume increased remarkably month-over-month in the third quarter. As one of the first PV enterprises to go global, we have accumulated rich experience and insights into the development and management of overseas supply chains. This has given us the know-how and capability to mitigate risk. Far, we have announced a few strategic cooperations such as a joint investment with Tongwei Co., Ltd. in a high-purity crystalline silicon project with annual capacity of 45,000 metric tons and investment in Inner Mongolia, Xinte Silicon Material Co., Ltd., a wholly owned subsidiary of Xinte Energy Co., Ltd. We have signed a strategic five-year polysilicon supply agreement with Wacker Chemie AG. Wacker will supply polysilicon to JinkoSolar from its production sites in Germany and the United States, which contributes to the long-term stability of our supply chain and business growth. Meanwhile, the overseas wafer manufacturing facility will start construction soon and will serve our production facilities in Malaysia and the United States when production ramps up. [Non-English content] In terms of integrated operations, over 7 GW of newly added capacity of large size cells has put into production during the second quarter to support the rapid growth in demand for large size products. With the release of new capacity, aided by the application of new technologies and the continuous optimization of our process, we are confident that optimizing the integrated capacity structure will gradually be reflected in cost reductions during the second half of the year. At the same time, cell technology is at a transitional stage from P-type to N-type. We are expanding the investment plan for N-type cell capacity based on technical advantages and two years mass production experience. [Non-English content] Leading technology, high quality products and reliable services form the foundation of our success and the growth of our market share worldwide. Recently, the maximum laboratory conversion efficiency of our large area N-type monocrystalline silicon solar cell reached 25.25%, and the maximum laboratory conversion efficiency of our high efficiency module reached 23.53%, both making history with new world records. This year, the shortage of polysilicon highlighted the economics of large size products. We expect the proportion of our large size product shipment to increase rapidly in the second half of 2021, and the market penetration rate of large size products to further increase next year. High module prices have also brought about changes in the market structure. The uptake of the distributed generation business achieved rapid development with more flexible business models and lower sensitivity to prices. In response to this trend, we have also raised the proportion of distributed business for the full year to around 40% of total shipments, compared with 20%-25% last year. In order to meet the needs of customers facing different distributed application scenarios. [Non-English content] The PV industry has largely completed its transition from relying on policy subsidies through policy strategic support, and the continuous cost reduction and product upgrades brought about by technology innovations have continued to fuel solar demand. We expect the second half of 2021 through 2022 to be a big moment for solar installations. Top-tier enterprises are expected to grow even faster than the industry average and further increase market share with higher proportions of large-size products and faster penetration of distributed generation markets. In order to secure the annual growth rate of our global shipments, we signed strategic cooperation agreements with both COSCO Shipping and Maersk. At the same time, in order to facilitate the rapid penetration of China's distributed generation business and the accelerated development of the energy storage business, we recently signed strategic cooperation agreements with Contemporary Amperex Technology, Gotion High-Tech, and other industry chain leaders. The partners will set up project teams to do joint research and development, share resources, and leverage their respective advantages to jointly promote further business development for solar plus energy solutions. [Non-English content] Before turning over to Gener Miao, I would like to go over our guidance for the third quarter 2021. We expect total shipments to be in the range of 5-5.5 GW, including module shipments to be in the range of 4.5-5 GW for the third quarter of 2021. Total revenue for the third quarter is expected to be in the range of $1.24 billion-$1.37 billion. Gross margin for the third quarter is expected to be in the range of 12%-15%. The annual mono wafer, solar cell, and solar module production capacity is expected to reach 32.5, 24, and 45 gigawatts respectively by the end of 2021. The full year 2021 shipments guidance, including wafer, cell, and modules, is still expected to be in the range of 25-30 GW. Thank you, Ms. Li. In the second quarter, total shipments reached 5.2 GW, inclusive of over 1 GW of wafer and cell shipped to China market. In terms of module shipment by region, Europe contributed the largest portion of the module shipment this quarter as module shipments increased by more than 40% year-over-year. Shipments to China and the United States remain stable sequentially. The rapid developing Chinese market has been given a boost by government policy and is expected to contribute a large proportion of shipment in the second half of this year and 2022. Through continuously monitoring China's market demand and our customers' needs, we have allocated the utility projects and the distribution market with different personnel, products, and the resources to support the coming strong growth. Overall, demand from overseas market remained strong in the second quarter, benefiting from both increasing power consumption brought about by the gradual recovery of energy consumption level, thanks to effective pandemic control measures and the effective implementation of carbon emission reduction goals in major economies like Europe and the United States. In addition, the expected reduction in subsidies in some markets has brought forward some demand. We believe that Europe and the United States and India will become even bigger driving forces for the newly overseas installation. The United States is one of our most important markets. Although the supplies have become more difficult of late due to challenges with shipping and the policies in short term, we have made strategic and long-term commitment to adapt our resources and infrastructure to better serve the US market. Our teams have already been proactively deploying, researching, and promoting suitable long-term solutions that will allow us to continuously grow and meet the needs of US market. We expect annual global installation in 2021 to be in the range between 150-160 GW. Some projects scheduled for this year have been delayed to the following year due to higher costs in the supply chain. Along with the new project in 2022, installations in 2022 are expected to increase by over 30%. We reiterate our total shipment guidance of 25-30 GW for the full year 2021. Looking forward, as we have a high degree of certainty on the future demand, we are striving to deliver faster shipment growth compared with industry average to increase our global market share, as well as reaffirm our competitive position and leading position in this industry. In terms of product prices outside the U.S., markets have generally maintained an upwards trend. In terms of product structure, the proportion of our large-size products have been rapidly increasing, with the 182-mm product accounting for approximately 50% of shipment in the second half of this year. We are bullish about the development prospects of distributed generation markets and expect up to 40% of total shipments this year would be going to distributed generation market. We will continue to explore the global market demand for the distributed generation based on market trends and customer needs, and proactively increase our presence in China, U.S., Europe, and explore other potential markets. With that, I will turn it over to Pan Li. Thank you, Gener. In the second quarter, we remained flexible and adjusted shipments for wafers, cells, and solar modules according to the prevailing market conditions. As a result, we achieved a relatively balanced performance in terms of shipments and profitability. Sales revenue was basically flat with the first quarter of 2021, while gross margin exceeded our expectations. The changes we addressed in the management and control operating expenses and exchange rate volatility have proven to be effective. Income from operations and net profit excluding non-recurring items increased significantly compared with the first quarter of 2021. For second half of 2021, we expect raw material prices to further stabilize and production volume to gradually increase, which combined with cost reductions resulting from new production capacity, should have a positive impact on profitability. Let me go into more details about this quarter now. Total revenue was CNY 1.23 billion, sequentially flat. Gross margin was 17.1%, sequentially flat. Disposal and impairment loss on property, plant, and equipment in the second quarter decreased significantly compared with the first quarter of 2021. Total operating expenses in the second quarter were CNY 155.3 million, which accounted for 12.6% of total revenues. In terms of absolute amount and proportion, both improved significantly compared with the first quarter of 2021. Excluding shipping costs, we expect operating expenses as a percentage of total revenues to remain stable. The effective management and control of operating expenses increased income from operations to CNY 55.2 million, up 139% sequentially. Operating margin increased to 4.5% from 1.9% in the first quarter of 2021. EBITDA was CNY 143 million, compared with CNY 123 million in the first quarter of 2021. Net income was CNY 10.3 million, and non-GAAP net income was CNY 42.5 million, up significantly sequentially. Non-GAAP diluted earnings per ADS increased to CNY 0.89. We continue to optimize our hedging against foreign exchange risks and recorded a net exchange loss of CNY 0.7 million, a significant reduction from a loss of CNY 4.1 million in the first quarter of 2021. Moving to the balance sheet. At the end of second quarter, our balance sheet of cash and cash equivalents was CNY 1.01 billion, approximately flat with the first quarter of 2021. Accounts receivables due from third parties improved significantly sequentially, and we will continue to work on improving liquidity. AR turnover days were 62 days, compared with 68 days in the first quarter of 2021. Inventory turnover days were 138 days, compared with 126 days in the first quarter of 2021. Total debt was CNY 3.12 billion at the end of second quarter, compared to CNY 2.67 billion at end of first quarter. Out of total debt, CNY 67.6 million was related to international solar projects. Net debt was CNY 2.11 billion, compared with CNY 1.59 billion at the end of the first quarter of 2021. This concludes our prepared remarks. We are happy to take your questions. Operator, please proceed. We will now begin the question and answer session. Audio participants with questions to pose, please press zero one on your telephone keypad, and you will be placed in the queue. To cancel the queue, please press zero two. Once again, zero one on your telephone keypad now. Our first question is from Mr. Philip Shen from Roth Capital Partners. Please go ahead, sir. Hi, everybody. Thank you for taking my questions. I'd like to ask about your view of the anti-circumvention Southeast Asia AD/CVD tariffs that could come around. If the Department of Commerce takes on the case in the coming weeks, what would you expect to do? Would you continue to ship into the U.S.? And if so, how would you mitigate that risk of retroactive tariffs? Or is there a possibility that you might stop shipping into the U.S.? Philip, this is Charlie speaking. To mitigate the risk, not only the risk you are talking about, let's say, the U.S., China on this solar industries. We have accelerated the process to build up more strong supply chain and integrated production line out of China. I think you know we signed the silicon arrangement with Wacker, and we have began to build up around 7 GW wafer capacities in Vietnam and to match our existing capacities in Malaysia and the U.S. From the, let's say, the medium term, we are optimistic and we will continue to serve our reputable US customers. For the circumvention you are talking about, the risk, it's still in the early stage, it did have some uncertainties. We are following up the event and closely keeping touch with our customers. Okay. Thanks, Charlie. I know it's a tough situation. I think you brought up the silicon arrangement with Wacker and your 7 GW of wafer capacity in Vietnam. I think in the anti-circumvention case, the Jinko Vietnam facility is mentioned in that case. If they do take the case on, does the wafer facility in Vietnam, would you continue to expand that or build that facility out? Or is there a chance that you might slow things down there? We don't have any further plan to expand capacity on the wafer out of China. The first step, we want to have a relatively competitiveness to build up the integrated, including the silicon out of China, to make sure to mitigate the risk to zero. We think we are in a good position to mitigate this risk. Okay, great. Then with the WRO enforcement, how much of your product from Malaysia has not made it to the U.S. shores thus far? What is the impact of that on Q3 results? Because I think in your prepared remarks, you talked about OpEx should be flat ahead except for excluding shipping costs. So how much product has been not able to get to the U.S. shores? Then how much is it costing you to store that product? Because my understanding is it can be quite expensive. Have you been able to find other markets for that product? Do you expect to wait for that product to make it to the U.S.? Thanks. We did have some modules stopped by the U.S. CBP and to request additional documentations. We're still in the process in the preparations of relevant documentations. At this stage, we are cautiously optimistic for the results. Because it's going to take time, so it did have impact our shipments to the US market. In terms of the storage, we were expecting to incur additional storage for the inventories and waiting for the preparation of the relevant documentations. Back to the question now, the solar demand is pretty strong, and I think it's not the demand issues, globally, it's just the supply chain, and the higher supply chain cost and production capacity bottleneck. Okay. Charlie, sorry to ask the question again, but can you quantify how much product has not been able to make it to the U.S., and what the cost might be to store that? In the process evaluation, at additional cost, it did have, as I said, have negative impact on the shipments to the U.S., as well as the gross margin, even net profitability in the short term. We are not in a position to disclose the detailed number. Okay. I really appreciate you taking the questions. I know there is some tough questions. With that, I will pass it on. Sure. Thank you. Thank you. Our next question is from Credit Suisse. Mr. Gary Dvorchak. Please go ahead, sir. Okay. Hello. Thank you for taking my questions. This is Gary from CS. I have three questions. Firstly, can management share with us what is your module price outlook into the fourth quarter this year, especially after the recent upstream cost hikes? What do we think is the maximum module price can the developers in China accept? Sure. Thank you, Gary, for your question. This is Gener Miao. Regarding market price, we have seen the latest changes are from the upstream supply chain side, like the polysilicon price change and the EVA price change, and even sometimes the glass price changes upwards as well. We are anticipating the modules price will not be able to accept all the upwards because there are certain bottleneck and ceilings for the downstream players and the customers to adopt all these numbers. In our observation, the latest, I think, tenders by some of Chinese SOEs number are just released today and yesterday. We have observed all these tier 1 players are about RMB 1.80 per watt peak. If we make it more specific, I think the range is somewhere between RMB 1.82-RMB 1.86. That should be our flagship price for the rest of 2021. Yeah, okay. Thank you. My second question is, can management share with us a little bit more information on our cooperation with CATL? Just wondering if there's any kind of numerical targets on the energy storage business and/or other cooperations. My last question is if company can share with us some updates on the subsidiary Asia listing. Thank you. Yeah, thank you for your question again. For the cooperations with all the storage battery companies including CATL, Gotion, and others, I think that's a very strategic move. In our prepared remarks, we emphasized that that is our long-term strategy prepared for the future. Because with grid parity ongoing, we are anticipating a massive installation in the renewable sector, especially in PV industry, to be happening in the next coming years. Because the nature of the PV solar power generation system and the storage is a must for the whole industry's further growth, that's why we have established the partnership with the key players in the storage sectors to make sure that we are well prepared for that. To make it more specifically, we joint research and development together with some of the resources sharing and the leverage each other's respective advantage to jointly promote the future business development for the solar plus energy solutions. The next question, I think Charlie will take that. The IPO process is still on the track. We submitted the application to the Shanghai Stock Exchange by the end of June. As of today, it's still in the review process by the regulators. Yeah. Okay. Thank you for taking my questions. Thank you. Thank you. Thank you. Our next question, Sunsara Capital, Mr. Rajiv. Please go ahead, sir. Yes. Good morning, good evening. I had a few questions. The first question is about gross income. You guys did a very good job of improving the gross income number from the first quarter and balancing the mix of wafers and modules to get there. Is it reasonable to think that, obviously there's a lot of dynamics, that gross income will continue to grow in the third quarter, even as you are increasing sharply the amount of modules that you will ship relative to wafers and cells? I'm not talking about the gross margin number, but the gross income itself. Is it reasonable to think that that will continue to increase in the third quarter? You have two questions. One is the gross income and gross margins. Gross margin, second quarter, we did have relatively good compared to our expectations. The major part is the wafer third-party sales contributions. Towards your third quarter, we expect the gross income will continue to increase while the gross margin is under pressure because we are trying to have more solar module shipments. At the same time, the upstream, the material costs are upwards. We are trying to continue to increase our module price, but it's still facing the high polysilicon, the EVA glasses and the price upwards. In general, we expect the gross income will increase while the gross margin is in a downward trend. I understand. The important thing is that gross income will continue to grow. The second question is that you maintained your guidance of 25-30 GW for full-year shipments, which suggests that you are expecting shipments of about 9 GW in the fourth quarter. Can you elaborate? Can you give us some insights into what the reasons are to expect such a big ramp from third quarter shipments? I have one more question. Yeah. I think a strong Q4 is within the plan. I think it's part of the nature of the solar industry, because if you look back in the last two, even three years' time, Q4 is always the peak season as of the whole year. Mainly because people are expecting a very strong demand from China. I think each company, or the whole industry as a whole, everyone will expect a stronger Q4. That's one part of the nature of the industry demand. Another part is we are steadily ramping up our in-house capacity as well. Naturally, our capacity will grow by time flying, and also as well as preparing for 2022 as well. Okay. Obviously you are expecting a very substantial increase in module shipments as well in the fourth quarter. The way you'll get to the 9 GW will be a substantial increase in module shipments. Right? In general, yes, that's the direction, but we still have the flexibility to expose our cells, break our cells into wafer cells or modules as we did in the Q2 or even Q3. We have the flexibility, but in general, the total shipment will grow for sure. Okay. My final question is on your capacity. You have substantially increased your capacity for modules, and you're now talking about 45 GW for next year. That's a very significant increase, and this is despite the fact that your module shipments this year are not growing as rapidly as they have grown in past years. Can you give us some insights into why you actually think that 45 GW for modules in 2022 is the right number, especially given that you'll have shipped about 21 or 22 GW this year? It's strategic preparations for next year. This year, the market is constrained by the polysilicons. After the bottleneck is deposited from polysilicons, we expect next year the market will accelerate the demands. On top of that, we are planning the N-type cell capacities, it's next generations and the capacities. The module, the capacity is relatively small, we want to build up module as quickly as possible for the preparation on next year. If you look at our shipment, let's say 9 GW, based on your calculations in the fourth quarter, the module, still we face some supply shortage, particularly we are building the large size module capacities for the next generations. Okay, thank you very much. Thank you. Thank you. Our next question is from Goldman Sachs, Mr. Brian Lee. Please go ahead, sir. Hey, guys. Thanks for squeezing me in for some questions. I had a couple housekeeping ones. First one, you guys gave us the breakout for modules and wafers. Can you do anything similar for what is embedded in the 3Q guidance as well as, since you're maintaining the full year, there's an implicit mix you're assuming in four? Can you give us a sense of module versus non-module shipments in 3Q and 4Q? Third quarter, we give the guidance total shipments 5-5.5, including module 4.5-5. The gap, the difference, is the majority of product is wafer, third-party sales. Taking to the fourth quarter, yes, we are still flexible, but majority of product, at this stage, we are expecting it's from the module shipments. Okay, fair enough. Just on the earlier question about gross margins, it sounds like you're seeing some margin pressure on both product types. Can you give us a rough sense of where gross margins are for modules versus non-module shipments in your guidance? third quarter, we give the guidance 12%-15%, and the majority part is module, so the gross margin, it is very same with module gross margin. For the fourth quarter, it is still some uncertainties. The material cost is upward very quickly, and at the same time, we are shifting our module shipment to China, the majority part. We are trying to get relatively high the module price. Hopefully, we are able to offset the cost upward pressures. Okay, fair enough. Maybe two more from me. I know you can't quantify or you don't want to quantify the shipments that have been held up at the border here with the WRO in the U.S. Can you give us a sense, I guess, what sort of mix impact or mix are you assuming in terms of shipments for the U.S. in Q3 and Q4? Are you actually embedding US shipments, module shipments, into the forecast here for either quarter? Maybe related to that, you have the 400-MW facility in Florida. Are you able to get cells, I guess, non-Jinko or Jinko cells into the country to run that module facility? I think the mix is something difficult to disclose at the current stage because even we are cautiously optimistic about our documentations, which has been well-prepared. Still, it's not 100% Jinko's call to decide what to do next. That's why we are cautious in monitoring the situation and doing our best. Right now, like Charlie Cao just said just now, I think we are very confident about the demand. Right now, it's not the problem of the demand. It's the problem of supply. Shipment-wise, we have multiple alternatives, and even we have a full commitment to our US customers and our US market, and we are preparing for it. It's difficult to disclose any detailed number, even for Q3 or Q4 in US shipment yet. I guess maybe to ask it another way, if you don't have clarity that you can move product into the U.S., ship product into the U.S., are you still planning to bring product to the border at risk of having it being seized for months until it gets released, and you can maybe ship it to another alternative location, as you mentioned? I guess, what's the strategy around taking that risk of having shipments which get delayed and then ultimately you do have to reroute them elsewhere versus waiting out the process to see what you should do with future shipments over the next couple quarters? I think we are still continue to stick to our plan for the shipment. Even we have some challenges because of the COVID control in the local Southeast Asia countries. We're still doing our best to find solutions with our customer right now. For detailed number-wise, again, we cannot quantify it yet because we don't have any number which we can disclose. Still, we are doing our best, and we have the confidence to continue to have our business ongoing, not only U.S., but in the other markets as well. We are working in different alternatives in parallel. We have no concerns on that. Okay. Last housekeeping one from me. What was the CapEx here for the first half of the year? Is there an updated view on CapEx guidance for 2021? Thank you, guys. Okay. For the first half of 2021, the CapEx number is approximately CNY 580- Million US dollars million US dollars. We increased the plan to build up more module capacities and to reach to 45 GW. We increased our CapEx target this year, and for the full year, it's roughly around $1.1 billion. Okay. Thanks, guys. Thank you. Thank you. The Q&A session is still open. Our next question is from UBS, Mr. William Grippin. Please go ahead, sir. Great. Thank you very much for fitting me in here. Just another one on the shipments. Obviously, the guidance implies a pretty substantial ramp in the fourth quarter for shipments to reach the total guidance. I'm curious, going into the quarter, are you expecting to hold more module inventory? Do you have the ability to ramp production that quickly depending on what the final mix of module and component cell and wafer sales end up being? Firstly, let me comment in general. I think my colleagues will give you a breakdown detail later. In general, I think the market demand is quite strong, and we are holding some of the inventory really because of the accounting issues, and we have the contract to fulfill. Right now, the global international logistics shipping lines are facing big headaches right now. I think it's not only for solar industry but for all the industries. It's difficult to get the ship on time and on schedule. That's why sometimes we have to face accounting point. We have some inventories on hand, but actually we have all the contract covered for those inventories. Okay. Then just one more for me. The guidance obviously implies cost pressures accelerating here in the third quarter. Despite polysilicon prices being pretty stable over the time period, glass obviously coming down, just wondering if you could provide a little more color on why are we seeing or expected to see margin compression in the third quarter relative to the second quarter? What level of confidence do you have here that you may actually meet or exceed the high end of the range again? The majority part is, I think, how we calculate the cost in second quarter and third quarter. It's based on the weighted average. The polysilicon reached to the high price starting from May this year. In the second quarter, based on the weighted average, the polysilicon price is not so high. It's not, let's say, 200 RMB per kilo. It's not based on that cost in the calculation in the second quarter. It's fairly low. With the time lapse into the third quarter, and the polysilicon, the average cost is reached to relatively high level. That is the major part. Hopefully you understand that this is weighted average and the polysilicon price, and it accelerates the pace starting from May. From the calculation perspective, weighted average, more impact will be reflected in the third quarter. I think it's one of the key impacts on the cost side. Got it. Thanks very much. Thank you. Thank you. Our next question is a follow-up from Mr. Rajiv from Sunsara Capital. Please go ahead, sir. Yes. I would like you to give us a little bit more clarification on the revenue number that you have guided for the third quarter. Using different combinations of wafers and modules shipments in the third quarter, and assuming that there is some price increases from Q2 to Q3. The revenue numbers that I'm coming up with are higher than CNY 1.4 billion, which is obviously higher than your guidance. Can you help us understand why your revenue guidance at the high end is CNY 1.35 when using your low end of your shipment guidance, combined with assuming that prices are stable or up for both modules and wafers, the revenue number that we come up with is higher than CNY 1.4 billion? It's a mixed issue. I mean, the shipment to U.S. versus our regions. The U.S., the ASP relatively stable by regions. We have more shipments in the third quarter versus second quarter. In China. In the third quarter, the US. shipments is relatively lower than the second quarter, the percentage-wise, the US shipment taking less percentage of the total shipment. The U.S., because of the trade issues and the ASP is dramatically higher than the other regions. It's mixed issues. What you're saying is that you can increase your gross income from second quarter to third quarter, even if at the aggregate level, the module price that you will realize will go down from second quarter to third quarter because you have less shipments to the U.S. where the modules price is inflated? Yes, you're right. With production cost is higher, in U.S., we need to pay additional 201 tariff cost. The gross margin, gross income from US shipments actually is not so significant difference with our regions. We have more shipments in our regions, which has no impact on the gross income contributions. Great. Thank you very much. Thank you. Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.