Hello, ladies and gentlemen. Welcome. Thank you for standing by for ReneSola Power second quarter 2022 earnings conference call. Please note that we are recording today's conference call. I will now turn over the call to Mr. Yujia Zhai, Managing Director of The Blueshirt Group. Please go ahead, Mr. Zhai. Thank you, operator, and hello, everyone. Thank you for joining us today to discuss our second quarter 2022 results. We released our shareholder letter after the market closed today. It is available on our website at ir.renesolapower.com. There is also a supplemental slide deck posted on the website that we will reference during our prepared remarks. On the call with me today are Mr. Yumin Liu, Chief Executive Officer, Mr. Ke Chen, Chief Financial Officer, and Mr. John Ewen, CEO of North America. Before we continue, please turn to slide 2. Let me remind you that remarks made during this call may include predictions, estimates, and other information that might be considered forward-looking. These forward-looking statements represent ReneSola Power's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under Risk Factors and elsewhere in ReneSola Power's filings with the SEC. Please do not place undue reliance on these forward-looking statements, which reflect ReneSola Power's opinions only as of the date of this call. ReneSola Power is not obligated to update on any revisions to these forward-looking statements. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to Mr. Yumin Liu. Yumin? Thank you, Yuj ia, and thank you for joining our second quarter earnings call. Today, I would like to start by giving a quick update on our second quarter results and then touch on recent trends in the solar industry and the general energy market. After that, Ke, our CFO, will review our financial results for Q2 in detail and cover our guidance for Q3 and the full year. We will be joined by our U.S. CEO, John, for the Q&A. Q2 revenue was $8.2 million, driven primarily by the energy production from our China IPP assets and the product sales in the U.S. The lower than expected revenue was due to the delays in closing of the product sales in the U.S. Gross margin for Q2 was 45% on higher mix of IPP revenue. EBITDA was $2.4 million. Looking forward, we are extremely optimistic about growth opportunities as the solar industry is benefiting from strong tailwinds, such as rising PPA price and a favorable regulatory environment in Europe and in the US. These tailwinds, plus our robust product pipeline and our strong execution track record, gives us confidence that we will be able to achieve our strategic goals. To be more specific, let me start with our largest market, Europe. In Q2, European power purchase agreement or PPA prices for solar projects increased by 19% from the previous fiscal quarter, and 47% year-over-year. Even with this price increases, solar PPAs continue to remain attractive relative to the significantly higher wholesale energy prices. For instance, in June, Poland's average wholesale price of electricity increased over 300% to about EUR 198 per megawatt hour from about EUR 55 per megawatt hour two years ago before the Russian-Ukraine conflict began. This emerging energy crisis continues to urgently drive the EU energy policies towards energy independence and is providing a major tailwind to renewable energy projects across Europe. In our second-largest market, the United States, we are seeing a similar price trend in the solar industry due to high demand for solar PPAs. In Q2, solar prices increased by over 8% from the previous quarter for all U.S. independent system operators in general. Further, on the regulatory front, we welcome the passage of the Inflation Reduction Act into the law in mid-August, which earmarks $369 billion for U.S. energy security and fighting climate change, and makes it the biggest investment in clean energy ever made in the U.S. history. The law includes many tax incentives for solar and storage deployments, including independent storage facilities, investment in domestic solar manufacturing, and other critical energy provisions. The Solar Energy Industries Association, SEIA, believes this law will create a stable policy environment for solar energy development and will set the foundation to drive the solar industry towards its goal of 30% of the U.S. electricity generation by 2030, from 4% today. We believe this favorable regulatory movements in the solar industry will drive up our revenue and margin opportunity of our pre-NTP and NTP product pipeline across Europe and North America. In terms of China, the resurging COVID and lockdowns in Q2 continue to affect our business activities and supply chains. In Q2, we only installed 3 MW and only 6.6 MW during the entire first half. Nevertheless, for the remainder of the year, we do expect activities to begin peaking back up. For the full year 2022, we want to reiterate our expectation of building up 3 GW of project pipeline, with a significant portion of the growth coming from Europe due to favorable policy support and increasing energy demand. We target growth of the company mid- to late-stage pipeline to 5 GW by the end of 2024. In addition, as part of our long-term growth plan, we are also building IPP projects and looking for M&A opportunities across Europe to take advantage of our higher solar PPA prices and the favorable regulatory environment. We are targeting to have approximately 100 MW in Europe by mid-2023. To sum up, the future looks bright for solar energy. We believe we are well-positioned to capitalize on accelerating solar adoption across Europe and North America. Given our deep expertise in developing and operating solar projects, our extensive network of industry partnerships throughout Europe and our well-capitalized balance sheet and our unmatched track record in closing financing transactions and profitably monetizing projects, we are increasingly optimistic about our goal of becoming a leading global solar developer. While we are extremely optimistic about the long term, we are also aware that the current energy crisis and inflation in Europe are causing significant instability in the region and increasing risks of recession. We remain cautious and extremely focused over the near term as the situation in Europe evolves. With that, I will now turn the call to our CFO, Ke Chen. Ke, please. Thank you, Yumin, and thanks everyone again for joining us on the call today. As a reminder, some of the metrics we use and discuss today are non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investor, along with the GAAP measure. A non-GAAP to GAAP reconciliation is included in our shareholder letter. Let's begin with our Q2 financial highlights on slide 17. Revenue was $8.2 million, up 134% sequentially and down 56% year-over-year. Revenue for the quarter was primarily driven by our China IPP assets, as well as the sale of three NTP projects in U.S. GAAP gross margin for the quarter was 45% above our guidance range for the full year, as revenue mostly was attributed to higher-margin IPP assets. Q2 operating expense was $3.9 million, slightly higher than $3.4 million in Q1 2022, and lower than $4 million from one year ago. The sequential increase in our OpEx was primarily due to the costs associated with implementation of a new ERP system and a one-time financing-related cost for our European market. On a non-GAAP basis, Q2 operating expense was $3.3 million compared to $2.7 million in Q1 2022, and $2.9 million in Q2 2021. Moving down to our bottom line. GAAP net loss in Q2 2022 was $0.2 million loss. Earnings per ADS was zero compared net loss per ADS of $0.03 in Q1, and net income per ADS of $0.10 in Q2 2021. Cash used in operating activity was $7.9 million. Cash used in investing activity was $2 million, and cash used in financing activity was $4.9 million. Now let's review the balances shown on slide 20. Our financial position remains solid and strong. Cash balance was $208 million, slightly lower than end of the first quarter 2022. Our debt to asset ratio at the end of Q2 remain low and holds a level of 8.3%. Furthermore, last week, we announced a share repurchase agreement with ReneSola Singapore that will buy back 7 million ADS at a price of $6 per ADS, totaling $42 million through a privately negotiated transaction. Separately, Shah Capital, one major shareholder of ReneSola Power, will purchase 1 million ADS from ReneSola Singapore at a price of $6 per ADS. This share buyback highlights our board and management team's confidence in our business and the growth opportunity ahead of us. Now let's cover guidance as shown on slide 25. For the second half of 2022 We anticipate the product sales will accelerate throughout the remainder of this year. We are re-illustrating our expectation for full-year revenue to be in a range of $100 million-$120 million. For full-year gross margin, we continue to expect will be 20%-25%. For full-year net profit, we continue to target $9 million-$10 million, which is in line with our prior guidance of at least 30% growth. For Q3, we expect revenue will be between $22 million-$25 million, and our Q3 gross margin to be between 20%-24%. Thank you. Now, we will now like to open up the call for any questions that you may have for us. Operator, please go ahead. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from Philip Shen with Roth Capital Partners. You may proceed. Hi, everyone. Thanks for taking my questions. First one is on the implied Q4 revenue guide. You know, last quarter, I think there was a $70 million implied Q4 based on the Q2 and Q3 outlook you gave from the Q1 call. Now it's a little bit higher with the Q2 falling short of the guidance, you know, $75 million-ish. Just wanted to understand what the risks were or are to the Q4 guide or to the Q4 outlook, given you know it's even higher now, and what percentage of Q4 could actually push into 2023. Last quarter, you guys talked about you know having a substantial number of smaller you know 1 MW projects that would not make or break the guidance. You would spread the risks, you know, more evenly with many of these MW projects. Just wanted to check in to see if that's still true, and if you think the risk is greater now for Q4 versus last quarter. Thanks. Thank you, Phil. It's a good question. You know, at this time, we are in the busy construction process for our projects in Europe, especially in Poland and Hungary. We are extremely confident that the smooth construction is being worked out by the European team. We feel very confident that we'll achieve the numbers as we guided. As you mentioned, another point to mention is, as those are all the small-scale projects, mostly 1-megawatt deals, after we acquire or procure the most of the BOS and modules, and most of the modules are already stored in our inventory and some are being shipped, we feel confident the construction will be in place on time. Great. Okay, thanks. Can you give us a sense for what percentage of your Q4 guide, implied Q4 revenue comes from these one megawatt and smaller projects? Is it half of it? Is it 20% of it? Or is it, you know, maybe something like? It's- 75% of it? Thanks. Usually, I think about 80%. Okay. Great. That, that's really, really useful. Thanks. As it relates to the 2020- By the way, let me add. Phil, let me add one more point. Please. Also in Q4, we will continue our product sales process in both U.S. and Europe. That's what I mean, like, around 20%-25% of the top line will be coming from the sales. Great. Okay. Thank you, Yumin. And then as it relates to 2023, last quarter, you guys highlighted that, you know, the business could grow revenue maybe 20%+ year-over-year in 2023 as well as the bottom line. You know, whether that's EBITDA or EPS, maybe you can help us understand which one. Do you still feel confident with that? Do you think it's a different number at this point? Thanks. I have to say, before I turn this over to Ke, that I have to say that we are extremely confident and optimistic about the future in 2023 and 2024. As of the current energy demand, very high energy demand, and also very high energy prices in Europe. Also, our execution of the development activities in all 10 countries we have activities has been very smooth and strong. Okay, Ke, please. Yes, Phil, thanks for that question, and we are very confident about 2023, both for the top line and the bottom line, and also EBITDA. We are confident that the growth of 20%-30%. Like Yumin in his prepared remarks, and most of this increase will come from, mainly from Europe. We will see most of this benefit to reflect in 2023. Starting, I mean, starting 2023. At this point, we're very confident about this 20%-30% growth from both top and bottom line. Great. Thank you, Ke. As it relates to margins, you know, the margin for Q3 is a little bit lower than, you know, really, you know, a bunch lower than what we would expect it to be. Can you talk through or give us a little more color as to why, and then, what kind of margin would you see in Q4 with 80% of the volume coming from the smaller projects? Could we get back to that 35%-40% type, you know, level? Thanks. That's a good point. One, we divide our business activities into the two pieces. One is the NTP or pre-NTP sales. We see very high margins. Literally speaking, that is way beyond 35%, as you mentioned. When we talk about we do EPCs, control the whole EPC thing for some selected or the long-term strategic customers, the margin goes down. Also, the revenue definitely go up. For example, I mentioned 75%, 80% of the revenue in Q4 will be from the EPC services, but the margin is a lot lower than the regular project sales margin. In our guidance, in Q3, Q4, as we have seen the major part of the revenue coming from the EPC activities, the margin also is relatively lower than the regular project sales. Got it. Yep. I think we have a lower margin for you in Q4, so that continues to stand. When you think about 2023, when you think about the mix of projects and the mix of the revenue, in 2023, do you expect vast majority to be NTP, or vice versa? I will say starting in 2023, as I mentioned in my notes earlier, that we do have NTP sales. That's the major part of our business. Another one is we do some EPC for selected customers, but the third piece of the revenue will be coming from the IPP. As I mentioned, we'll have around or over 100 MW by the first half of 2023. So that portion of the IPP activities will contribute to both top line, bottom line, and also help on the margin. That is the general strategic move by the company, considering the overall changes are favorable changes, especially the high price, high PPA price in Europe. We are, literally speaking, instead of making the quick sales, either at NTP or pre-NTP or COD, we are holding some assets for our IPP strategy. That will contribute to our numbers in 2023, mostly. Great. Okay. Thank you, Yumin. One last one for me, and I'll pass it on. As it relates to the recent repurchase, share repurchase transaction announced last week, was wondering if you could give us a little more color. It looks like, you know, both Mr. Li and Mr. Shah are increasing their ownership. To what degree. Sorry if you addressed this in your prepared remarks, but to what degree does this impact the pace of your corporate repurchases? I'm guessing, it doesn't, but was wondering if you could give us an overall more color and then, how you expect the repurchase outlook to be ahead. Thanks. Sure. Phil, just wanna clarify. Actually, Mr. Li sold his shares, so the company purchased his shares. Basically, Mr. Li reduced his shareholding. On the other hand, the Shah Capital increased their shareholding. I just want to clarify that. Again, the company shareholder structure will be more clear, and the strategy and management confidence is there. This is a very positive deal for the company. In terms of the corporate buyback, this does not have direct impact for the corporate buyback. Great. Yeah, sorry about mixing that up. Yes, ReneSola, bought, you know, from- Yes. ReneSola Singapore. Yep. Okay. Yes. I see it here. Okay. Great. Well, thank you for all the color and detail. I will pass it on. Thank you, Philip. Thank you. Thank you. Our next question comes from Pavel Molchanov with Raymond James. You may proceed. Thanks for taking the question. Let me start with Europe. You mentioned that you're sort of cautious and, you know, seeing potential headwinds, because of the war and the energy crisis. Shouldn't it be the opposite? In other words, shouldn't prospective customers be demanding the fastest possible construction of projects to help them get through the winter season? You are, you made a very interesting comment or a good question. Yes, in general, we see the tailwind is very strong in regards to the energy demand or demand of solar farms in Europe. Okay. You are absolutely right. That is also our major consideration or the major reason for our IPP consideration. Instead of selling our projects to our customers, we plan to keep them. We have around 100 MW. Before the IPP strategy, we were going to sell them entirely, but now we decide to keep them. Not only benefiting from the high merchant price or PPA price, but also helping the Europeans to get over the difficult winter season. Okay. As of the strong balance sheet the company has right now, that is the strategy. We hope we get personally involved in helping Europeans to get over the challenging time of the energy crisis, if I call it. On the other hand, the reason I mentioned that we are cautious about the potential recession as we see the currency fluctuating against the dollar, I'm talking about euro against the US dollars. We are a US dollar-denominated listing company, so we do see some reflection of the potential currency loss, although it's on books only. Those are the things we remain to be cautious. In general, we absolutely are in a very favorable position to grow our pipeline. Not only grow the pipeline, grow the team, but also grow our IPP portfolio in Europe. Are you able to deliver any projects, maybe rooftop systems, 500 kW, something like that, on an emergency accelerated basis, for example, before the end of the year? Yes and no. In general, we do not do any rooftop deals in Europe. Only exception is France. In the favorable policy support, in France, that the rooftop deals have a very high PPA price or FIT, also enjoys very favorable approvals or fast approvals on permits. Okay? Our team is working or considering working on some rooftop deals. In other countries in Europe, we only do ground-mounted, even those deals are small, like 1 MW, half a megawatt in Poland and Hungary. At the same time, as I mentioned, our team is building those projects in Europe, and we plan to keep them. I don't have the exact number, but we'll have solar farms under our IPP portfolio in Europe coming online starting end of this month. Okay. Good, good to hear. Lastly, what are your latest thoughts on acquisition activity? We need to say that we have been very cautiously working on the M&A front, but we are in some final stage on M&A activities, especially the ones we are working on in the last several months in Europe. Okay. We will hear about that later in the year? You will hear it very soon. All right. Thank you guys. Thank you. Thank you. Thank you, Pavel. Thank you. One moment for questions. Our next question comes from Amit Dayal with H.C. Wainwright. You may proceed. Thank you. Good afternoon, everyone. Just with respect to the outlook, you know, going into 2023, you know, once this big Q4 2022 is out of the way, can you give us some sense of how quarters will look like or cadence of the quarters beginning in Q1 2023? Is it, you know, $20 million-$30 million revenue type quarters or, you know, maybe bigger or smaller? Just trying to get a sense of how we should think about the financials, you know, beginning in Q1 2023. Okay. I think we mentioned on the same topic earlier that we, at this time, are very confident that our construction will be moving smoothly as we planned, as the BOS, the modules have all been procured and some are in inventory, some are on the shipment. We expect the construction completion of those small-sized projects to be done by the end of the year. That contribute to our top-line revenue for the Q4. The major part of those revenue will come, some will come from Q3, and depending on the closing or the completion of the construction. Most of them will come from Q4, okay? That's the major part of the story that. As I address Phil's earlier question that around 80% of the Q4 revenue will be from the EPC activities in Europe, okay. We feel confident that we'll make it. Yeah, I was trying to get a sense of, you know, after Q4, right? I mean, you're having a pretty big quarter. Okay, I see your point. In Q1 2023, you know, obviously there might be a step down. Yes. Do we go to, like, $20 million type of quarter or, you know, higher, lower than that? Just trying to get a sense of, you know, how Q1 onwards next year, you know, the revenue is gonna look. Yes. Let me cover this. I mean, we have not given out, like, quarter-over-quarter guidance in 2023 yet. We're talking about the whole year in 2023 will be 20%-30% increase from 2022 because our pipeline continued to build up. Again, we're talking about monetize this pipeline year-over-year increase. That's a general trend on year-over-year basis. On quarter-over-quarter basis, again, we will still see some variability. Like, we just mentioned, we're gonna have some IPP assets from Europe, so that will stabilize our, I mean, revenue and net income, quarter over quarter. Again, just purely from NTP sale point of view, I think if you just look at that part only, that will be, like, $50 million-$20 million quarter-over-quarter range. Again, we have three businesses: NTP sales, COD sales, and the IPP assets. Again, variability in our revenue range quarter-over-quarter. No, I understand. That's fine. With respect to the IPP- No. By the way, Amit, let me add one point that the construction of the European portfolios will continue. The major part of it will be completed by the end of the year. Throughout the future year, future quarters, especially the Q1, Q2 of 2023, we will also have EPC activities, including the ones we planned to keep in our IPP portfolio. In any case, as Ke Chen mentioned, with the three different contributions from the IPP, from the NTP sales, and from EPC, we do see strong numbers coming from our bigger increased project pipeline. Right. No, I get it. I can take my follow-ups on that outline. With respect to the China IPP, you know, you were earlier targeting 100 MW, then you scaled it down to 50 MW-70 MW because of, you know, COVID challenges over there. Is this, you know, 50 MW-70 MW still in play, or should we, you know, expect that to be a little bit lower given what is happening in China still? Thank you. It's a very good question. As I mentioned, for the first six months, we only did a bit over 6MW. For the following, the second half of the year, we expect that another like 30+ MW can be done. That's why I mentioned the speed of the China development will be picked back up. But you know, it's nobody can predict how things may happen if the further lockdowns or COVID cases go up, okay? But on the current schedule, you are right. I don't think we can continue our guided target that's around 60 MW-70 MW. The number in China completed by the end of the year should be around 30 MW-40 MW. Okay. This is, like you said, not really demand driven, but more just the situation driven, circumstance. Exactly. You know, we have a long list of projects ready to start construction, but unfortunately we could not, okay? Amit Dayal, yes, just give you the data. By two days ago, there is data showed 30% of China's GDP, the cities involved are under lockdown. That's very difficult for us. Again, we have shown we have a 136 MW pipeline, but it's just very difficult to carry out at this moment. Right. No, I understand. Just last one from me. Can you give us a sense of what you expect your cash position to be, you know, at the end of 2022 after all these share repurchases, et cetera, are addressed? Yes. Again, there's a question about M&A. Without a merger acquisition, we again expect around $200 million. 200? Yeah. Okay, thank you. Thank you. That's all I have. Keep that in mind, though, without a M&A. Okay. Yes, yes. Understood. Thank you. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. Our next question comes from Donovan Schafer with Northland Capital Markets. You may proceed. Hey, guys. I wanted to ask you about. Clearly, you guys have a lot of cash on your balance sheet, and so, you know, you're not in need of raising any cash, and you're more thinking about things from the standpoint, you know, of being an acquirer, and not, you know, the target of someone else making acquisitions. It is interesting, you know, there have been articles in PV Magazine and some other outlets about RWE acquired a Polish developer, Alpha Solar, for their 3 GW pipeline. Alternus Energy acquired, I'm probably pronouncing this wrong 'cause I think it's Polish, but Projekt Solartechnik to get their pipeline in Poland. Sonnedix acquired a company called Sun Power Energy. Certainly, I'm certain that that's a different company. It's a Polish developer. It's not obviously the SPWR ticker stock in the U.S. You know, there are these acquisitions, and in that case, I think it's a 1 GW pipeline. You guys have, you know, 700 MW. You know, you're kinda close to a gigawatt in Poland. I know all the projects can kind of be at different stages in development. I'm just curious, have you been approached by other companies that would want, you know, that have been, you know, trying or offering to buy out your whole kind of Poland portfolio or maybe even Hungary? You know, are you getting interest there? Is it something you would consider? Since you have a lot of cash, you know, maybe you're not really interested in that at all. I'd be curious, a lot of these announcements and press releases, they don't disclose the acquisition cost. Some do, but most don't. You know, it'd be nice if there was almost a way to kind of compare your portfolio to some of these acquisitions or some of these transactions and try and come up with kinda like, what's the value, you know, of this footprint and all these projects you guys have set up in Poland. If you can just talk about that'd be great. Yeah, you ask a very, very interesting question. We touched upon it a little bit earlier, that the high energy demand and high PPA price or even the merchant price in Europe and the U.S., literally speaking, started driving the value of our pipeline up significantly. You know, for the M&A activities, our U.S. and European team have been actively acquiring project assets. We normally acquire mostly early to middle-stage projects and add our expertise and develop them to NTP or even build them to COD and sell them for a higher margin. We are constantly doing the project sales too, as we also sell at pre-NTP, NTP or COD at different stages. I answer your first question, have we been approached? Yeah, we've been approached all the time about what we want to sell. At this time, most likely we want to optimize the project value and find the best time to monetize our projects. The best time we sell in Poland, for example, are either NTP or COD, not earlier. Okay? That's number one. Number two is, you are absolutely right. We have a very strong balance sheet. We do have cash in hand. In the market, we have been using our connections or partnerships to drive the more opportunities to acquire. In the market, our developers in every country are looking to acquire projects, okay? We sell, when you see our announcement, we sell when we believe we have optimized the projects and sell at the best margin benefiting the company. Okay? What I feel, another part of the, it may not be directly addressing your question, but we have a pipeline close to 3 GW, and by the end of the year, we hope to build up over 3 GW of pipeline. While we are acquiring projects and development platforms, we believe this 3 GW of pipeline has a very nice valuation to the company, okay? While its current valuation in different development stages is not good enough for us until we can do the thorough optimization of the development on those projects before we monetize them. Okay. That's helpful. I'm thinking this may be also sort of related. Back, you know, Yumin, when you took over as CEO at the end of 2020, at the tail end of 2019, you know, you shifted or you announced and doubled down and emphasized a much greater focus and strategy around NTP sales versus COD sales because, you know, that allows you to get better gross margins, and, you know, as long as you can find enough a big enough pipeline. That's what really drove the shift to a real focus on pipeline. Now, you know, you've announced that you're gonna build these 100 MW in Europe because the pricing looks so good right now. I know, you know, that means you're gonna be kind of investing the capital to take those projects from, you know, a greenfield or kind of from scratch all the way to completion and then holding it on your own portfolio. I guess, does that create sort of almost like a barbell-type strategy? Because I think of COD as sort of in the middle. Like you develop it, and then you sell it when it's constructed, but you don't hang on to it. Is this kind of you're gonna develop some of the better cash flow assets that you think can turn into cash flow generating assets, those go into the IPP bucket, and you hang on to them. Those continue to generate cash flows to kind of fund operations and keep the kind of NTP-type engine going, and trying to minimize as much of just the COD. Is that kind of the logic there? Is that how the IPP bucket and doubling down on that is still consistent with trying to do more NTP-type sales? Yes, absolutely the case that as I mentioned earlier, we will maintain our mainstream of activities on NTP sales across the board. Okay? Only for some selected strategic customers we provide the EPC support. Literally, on EPC before COD in Poland, in Hungary and some other countries, we not only do EPC, we provide financing, short-term bridge and long-term financing. We put the whole package together and make sure the whole package, without really going any further, can generate electrons and be accepted totally by the end customers of ours. Okay? In any case, that will be the mainstream activities of our company. I believe that also benefit the company from a lot higher gross margin and also a lot faster payback time of our investment. Another point. Okay. On IPP front, we literally start our light IPP strategy about six months ago. When we look at the energy price, PPA price, our merchant price in Europe is going sky high. Our team has done the thorough analysis. We believe that although we can monetize our projects in the countries in a very high margin, but in literally speaking, we could recycle or receive the same return in less than two years when we run those projects under our IPP portfolio. Okay. We are thinking about the long-term strategy of the company, not really making any quarter strong, but instead, we hope to make a stronger company in the long term. Yeah. I think I've heard something where with pricing being so high right now as an IPP, you know, merchant pricing was good, but you might even be able to sign some contracts where you could get off-takers who will commit to a two-year contract, maybe a three-year contract, but not like a long, you know, 10-year, 20-year contract. If you're getting that kind of, if you can lock that in and get the payout in two or three years, you know, why not? You might as well do that. Then you still have an asset you could sell when, you know, those contracts roll off after three years. You are right. You are right. Yeah. Sorry to interrupt. The short term, you are absolutely the expert on top of this, PPA or the merchant price. That the PPA price in Europe, in some countries, we are talking about 5-6 times compared to the. I mean, the 1-2-year PPA price or a 3-year PPA price is about 5-6 times the normal long-term 10-12-year PPA price. Okay? It is very logical and making lots of sense for us to sign a short-term PPA 1 year or 2 years equal to the original 10-year considerations. Yeah. Okay. That makes a ton of sense. Then just from kind of thinking, for 2023, you know, some people were asking about that. I saw that the IPP projects, it looks like, there are—it's a lot of it is sort of in the same. It's Hungary and Poland, I think, where two of them are. It's the same number of megawatts as the shareholder letter last quarter. It's just been, you know, sort of reclassified from an RTB or a CT-COD sale to IPP. It's sort of the same projects that you already knew. I'm assuming it's the same projects you knew you were planning on doing, you know, last quarter. You've just sort of decided to change that instead of doing an NTP sale, you're gonna hang on to these ones. Is that gonna near-term mean, you know, lower revenue? Because, you know, if you flip and sell the whole project, you know, in the first or second quarter of 2023, that gives you a big chunk of revenue. If you decide you're gonna hang on to it instead, that could put, you know, all else equal, you'd end up with relatively lower revenue than you would get if you just, you know, flipped and sold the project. You're making that decision on a longer-term ROI basis. I'm just... Would you get a higher gross margin because you're getting, you know, you're getting, I guess, higher gross margin in second half of 2023 and maybe 2024 because you're getting electricity production, you know, your high margin IPP sales. But in maybe the first half of 2023, you're getting lower than what the kind of revenue you'd get otherwise because you're hanging on, you're investing EPC effort in developing these projects, but you're not just flipping them and monetizing them. Is that kinda gonna impact the financials? Absolutely. I think you hit a very interesting point that you read our minds, and also you can become our chief strategist of the company. Exactly, that's the case that we would have made a lot higher, not a lot higher, but definitely higher revenue and higher margin for this year if we continue our NTP sales strategy in Europe. Okay. But as I mentioned, one strong quarter does not really benefit the whole company in the long run. We believe the IPP strategy, holding around 100 megawatts of projects, which we can sell them as early as Q4 or even some in Q3, we made the right decision by keeping them. As I mentioned, those IPP assets can generate the same bottom line to the company in less than two years. The simple logic is I can sell for example, $100, but in two years, I can get the same $100 back. From the year three, it's my free solar power. Yeah. No, The decision was made literally, really for sustainable cash flow and sustainable stronger company. Okay. Well, thank you for the kind words. I don't see myself as being as the strategist, but I appreciate that, and I'll take the rest of my questions offline. Take care. Thank you. Thank you. Thank you. I'm not showing any further questions at this time. I would now like to turn the call back over to Yumin for any closing remarks. Oh, thank you, operator. We believe broad social and governmental support for renewable energy will create a robust environment supporting the growth of the solar projects, which in turn should drive exciting growth for us in the quarters ahead. Our strategy is sound, and our track record of execution is strong. We have never been more excited about the future. We appreciate the dedication and commitment of the every staff of the company and all shareholders' support and confidence in us. Thank you all again for your participation. This concludes our call today. You may all disconnect. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.