Daqo New Energy Corp. Q4 FY2023 Earnings Call

Good day, and welcome to the Daqo New Energy Fourth Quarter and Fiscal Year 2023 Results Conference Call. All participants will be in the listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I'd now like to turn the call over to Ms. Anita Zhu. Please go ahead.

Hello, everyone. I'm Anita Zhu, the Investor Relations of Daqo New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the fourth quarter and fiscal year 2023, 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 CFO, Mr. Ming Yang; and myself. The call today will begin with an update from Mr. Xu on market conditions and company operations. And then, Mr. Yang will discuss the company's financial performance for the quarter and the year. After that, we'll open the floor to Q&A from the audience. Before we begin the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industry growth, are forward-looking statements that are made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the reports or documents we have filed with 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'll 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. So Mr. Xu will make his remarks regarding current market conditions and company performance in Chinese, which I'll translate into English after he finishes. Now I'll turn the call to our CEO.

Thank you, Anita. Hello, everyone. 2023 presented unexpected developments and challenges in the solar industry, with record installation volumes globally but also record low prices at the end of the year. Thanks to our team's dedication and contributions, we achieved an annual polysilicon production volume of 197,831 metric tons in 2023, meeting our guidance of 196,000 to 199,000 metric tons and reflecting a 47.8% year-over-year growth compared to 133,812 metric tons in 2022. We sold 200,002 metric tons, which is 50% higher than the 132,909 metric tons sold in 2022. Although there was strong demand growth for solar PV products around the world in 2023, the high poly prices caused by capacity mismatches and supply shortages in 2022 were mitigated early in 2023. Consequently, poly-ASPs dropped significantly for the year to $11 per kilo from $32.54 per kilogram in 2022. Our revenue totaled $2.3 billion in 2023, down from $4.6 billion in 2022 due to much lower ASPs, although the decline was partly offset by higher sales volume. Despite the challenging market, our gross margin remained strong at 39.9% for 2023. The company generated strong operating cash flow of about $1.6 billion for the year and maintained a healthy balance sheet with no financial debt. By the end of the year, we had a cash balance of $3 billion and a total cash and bank notes receivable balance of $3.2 billion. In the fourth quarter, we optimized operations and improved yield and throughput at our two poly facilities, resulting in total production of 61,014 metric tons, an increase from the previous quarter. We saw solid customer demand for our high-quality N-type poly, keeping our finished goods inventory low, which helped us hedge against risks during the off-season late in the year. With new capacity released in Q4, the price gap widened between high-quality manufacturers and new entrants. Despite tough competition from increased poly supply, we maintained our leadership in cost and quality. Our production cost decreased quarter-over-quarter by about $1.2 per kilo from the fourth quarter of 2022 to the fourth quarter of 2023. In December, our complete product mix reached around 60%. Overall, we remained profitable even under challenging market conditions, generating $128 million in EBITDA for the fourth quarter and sustaining strong cash flow. We expect our total poly production volume for the first quarter of 2024 to be around 60,000 to 62,000 metric tons, similar to the fourth quarter of 2023, as we maintain full production. We plan to start initial production at our new Inner Mongolia 5B facility in the second quarter of 2024, anticipating a total production volume for 2024 of about 280,000 to 300,000 metric tons, representing a 40% to 50% increase from 2023. With over a decade in poly production and a fully digitalized and integrated system to optimize operational efficiency, we aim to further enhance our product mix. In the industry, poly prices in the fourth quarter fell from about RMB87 per kilo for mono-grade poly in September to RMB65 per kilo in December, mainly due to seasonally lower demand. In October, ingot segment utilization dropped because of excess inventory and decreasing wafer prices. In November, N-type module prices went below RMB1 per watt for the first time, making profit margins slim for solar cell manufacturers. On the supply side, poly production in China continued to rise in Q4, driven mainly by Tier 2 and Tier 3 manufacturers, including newcomers. However, leading high-quality producers fell short of production expectations, widening the price gap with Tier 2 companies. By the end of December, N-type and P-type poly prices were around RMB65 to RMB68 per kilogram and RMB55 to RMB62 per kilogram, respectively. Looking ahead to the first quarter of 2024, we anticipate a slight rebound in poly prices due to the seasonal effects of the Chinese New Year, followed by stabilization in Q2. The transition to N-type products is gaining momentum as downstream producers increasingly switch to N-type, attracted by the higher price premium for N-type TOPCon products compared to P-type products. We expect this demand for higher-purity N-type poly to continue throughout 2024 in a tight supply market. Overall, 2023 marked an unprecedented year for renewable energy growth, significantly driven by China's expanding solar market that reached a record 216.88 gigawatts of new solar PV capacity, a year-over-year growth of 148%. This was particularly pronounced in December when China added 53 gigawatts, roughly a quarter of the year's total new capacity. Solar is now one of the most competitive forms of power generation. The ongoing reduction in solar PV product costs, along with lower solar energy generation costs, is expected to create significant additional demand for green energy. With 2023 laying the groundwork for phasing out P-type products, we believe that 2024 will see N-type products leading the market. We are hopeful to capitalize on the long-term advantages of the growing global solar PV market by enhancing our high-efficiency N-type technology and optimizing our cost structure through digital transformation. In 2023, we collected over 20 billion manufacturing process data points from our poly production facilities, giving us one of the largest pools of poly production data among our peers in China. We are now applying AI to this extensive data set to increase the proportion of N-type products in our mix and lower production costs by identifying key relationships across different processes, ultimately to predict the optimal inputs and parameters for the best production outcomes. We anticipate that the more data we collect and the more we utilize our AI-driven analytics, the further we can reduce costs, enhance efficiency, and boost productivity. Now I will hand the call over to our CFO, Mr. Ming Yang, who will discuss the company's financial performance for the quarter. Ming, please go ahead.

Thank you, Anita. Hello, everyone. This is Ming Yang, CFO of Daqo New Energy. We appreciate you joining our earnings conference call today. We'll first go over the company's fourth quarter 2023 financial performance, then follow with our full-year 2023 financial results. Revenue for the fourth quarter of 2023 were $477 million, compared to $484.8 million in the third quarter of 2023 and $864.3 million in the fourth quarter of 2022. The decrease in revenue compared to the third quarter of 2023 was primarily due to a decrease in sales volume, mitigated by increasing ASP. As Mr. Xu mentioned earlier, ASP for Q4 was $7.90 per kilogram, which was 3.8% above Q3 ASP of $7.68 per kilogram. Gross profit was $87.2 million, compared to $67.8 million in the third quarter of 2023 and $669 million in the fourth quarter of 2022. Gross margin was 18.3%, compared to 14% in the third quarter of 2023 and 77% in the fourth quarter of 2022. The increase in gross margin compared to the third quarter of 2023 was primarily due to higher average selling price and lower production cost. Despite an 8% increase in silicon metal procurement costs in Q4, compared to Q3, we managed to reduce costs slightly due to improvements in utilization, as well as other improvements in manufacturing efficiency. SG&A expenses were $39 million, compared to $89.7 million in the third quarter of 2023 and $44 million in the fourth quarter of 2022. SG&A expenses during the fourth quarter include $19.6 million in non-cash share-based compensation expense related to the company's share incentive plan, compared to $46.3 million in the third quarter of 2023. R&D expenses were $3.3 million, compared to $2.8 million in the third quarter of 2023 and $2.7 million in the fourth quarter of 2022. R&D expenses can vary from period to period reflecting R&D activities that take place during the quarter. R&D activities for the quarter were primarily related to quality improvements and anti-product research. Foreign exchange loss was $0.8 million, compared to a gain of $3.1 million in the third quarter of 2023, and is attributed to the volatility and fluctuation in the USD, the CNY exchange rate during the quarter. Income from operations was $83.3 million, compared to $22.5 million in the third quarter of 2023 and $623 million in the fourth quarter of 2022. Operating margin was 17.5%, compared to 4.6% in the third quarter of 2023 and 72.1% in the fourth quarter of 2022. Net income attributable to Daqo New Energy shareholders was $44.9 million, compared to net loss of $6.3 million in the third quarter of 2023, and net income of $332.7 million in the fourth quarter of 2022. Earnings per basic ADS was $0.64, compared to loss per basic ADS of $0.09 in the third quarter, and earnings per basic ADS of $4.26 in the fourth quarter of 2022. Adjusted net income attributable to Daqo New Energy shareholders, which excludes non-cash share-based compensation costs, was $66 million, compared to $44 million in the third quarter of 2023 and $363 million in the fourth quarter of 2022. Adjusted earnings per basic ADS was $0.94, compared to $0.59 in the third quarter of 2023 and $4.65 in the fourth quarter of 2022. EBITDA was $128.2 million, compared to $70 million in the third quarter of 2023, and $649 million in the fourth quarter of 2022. EBITDA margin was 26.9% compared to 14.5% in the third quarter of 2023 and 75% in the fourth quarter of 2022. Now I will go over the company's full-year 2023 financial results. Revenue for 2023 was $2.3 billion, compared to $4.6 billion in 2022. The decrease was primarily due to lower polysilicon average selling prices and partially mitigated by higher sales volume. Gross profit was $920.7 million for 2023, compared to $3.4 billion in 2022. Gross margin was 39.9%, compared to 74% in 2022. The decrease in gross profit was primarily due to lower average selling price. SG&A expenses were $213 million, compared to $354 million in 2022. The decrease was primarily related to a reduction in non-cash share-based compensation costs related to the company's share incentive plan. R&D expenses in 2023 were $10 million, compared to $10 million in 2022. Income from operations was $783.4 million, compared to $3 billion in 2022. Operating margin was 33.9%, compared to 66% in 2022. Net interest income was $52.3 million, compared to $14.5 million in 2022. The increase in interest income for 2023 was due to the company's higher cash balance at banks. Income tax expense was $174 million, compared to $577 million in 2022. Net income attributable to Daqo New Energy Corp shareholders for the full-year 2023 was $421 million, compared to $1.8 billion in 2022. Earnings per basic ADS were $5.64, compared to $24 in 2022. Non-GAAP adjusted net income attributable to Daqo New Energy shareholders was $554 million, compared to $2.1 billion in 2022. Adjusted earnings per basic ADS were $7.42 in 2023, compared to $27.97 in 2022. EBITDA was $918.6 million, compared to $3.15 billion in 2022. EBITDA margin was 39.8%, compared to 68.4% in 2022. And now on the company's financial condition. As of December 31, 2023, the company had $3 billion in cash, cash equivalents, and restricted cash, compared to $3.28 billion as of September 30, 2023, and $3.5 billion as of December 31, 2022. At the end of 2023, the bank notes receivable balance was $116 million, compared to $275.8 million as of September 30, 2023 and $1.13 billion as of December 31, 2022. Notes receivable represent bank notes with maturity within six months. Now on the company's cash flow. For the 12 months ended December 31, 2023, net cash provided by operating activities was $1.61 billion, compared to $2.46 billion in the same period of 2022. And for the 12 months ended December 31, 2023, net cash used in investing activities was $1.19 billion, compared to $998 million in the same period of 2022. Net cash used in investing activities in 2023 primarily related to the company’s capital expenditures on the company’s 5A and 5B polysilicon expansion projects in Baotou City, Inner Mongolia. And for the 12 months ended December 31 2023, net cash used in financing activities was $795 million, compared to $1.47 billion of net cash provided by financing activities in the same period of 2022. The net cash used in financing activities in 2023 was primarily related to $486 million in share purchases and $303 million in dividend payments made by the company's subsidiary Xinjiang Daqo to its minority shareholders in the China's Asia market. And 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 start the question-and-answer session. The first question comes from Philip Shen with Roth MKM. Please go ahead.

First one is on the outlook for price. You said in your prepared remarks that poly prices could rebound in Q1 and then stabilize in Q2? Can you quantify what N-type and P-type pricing could be in Q1? When you say rebound slightly, what does that mean? And then would you expect that to just be flat in Q2? And then if you have any view on what poly pricing does in the back half of 2024, that would be very helpful. Thanks.

The first question is about the price outlook. You mentioned in your prepared remarks that poly prices might recover in Q1 and then level off in Q2. Could you provide some specifics on what N-type and P-type pricing might look like in Q1? When you mention a slight rebound, what does that mean in terms of numbers? Also, do you anticipate prices remaining flat in Q2? Additionally, any insights on poly pricing for the latter half of 2024 would be very useful. Thank you.

Based on our understanding of market supply and demand and our own forecasts, we expect that in the first half, N-type will range between RMB70 to RMB73 per kilogram, while P-type will be around RMB65 per kilogram. In the second half, depending on demand and whether it shows recovery and growth, we anticipate that N-type might rebound to RMB80 per kilogram and P-type could reach around RMB75 per kilogram.

Can you explain the dynamics behind the recent changes and the reasons for the potential price increase? Have you observed many competitors leaving the market or shutting down from an industry perspective? Do you anticipate lower utilization due to limited supply, or will demand be the factor that offsets this and drives higher prices? Thank you.

Can you explain the dynamics behind the potential price expansion? Have you observed many players exiting or shutting down from an industry structure perspective? Do you anticipate that utilization will decrease due to limited supply, or do you think demand will be the factor that drives the higher prices? Thank you.

I'll fill in for Mr. Xu. Currently, we are experiencing a period of relatively low market demand. The module production utilization is estimated to be only 60% to 70% compared to the levels seen in September of last year. This has resulted in N-type poly pricing in the RMB70 to RMB73 range and P-type in the RMB60s, marking a significant improvement from December's pricing. We believe that as we move into summer and demand levels recover, potentially reaching the August-September range, N-type prices could easily return to the RMB80s, while P-type might be in the RMB70s. Overall, we are noticing a relative oversupply of poly compared to demand. Specifically for N-type poly, industry statistics suggest there is only about 60,000 to 70,000 metric tons of monthly supply, whereas demand exceeds 100,000 metric tons per month due to the existing N-type cell capacity in the market. Thus, we anticipate sustained strong demand for N-type products in a tight supply environment moving forward, which is consistent with our observations today.

Great, thank you, Ming. Do you think, from a capacity standpoint for N-type, do you see others trying to ramp up that N-type poly capacity and do you think they can be successful to try to close the gap or do you expect this difference between supply and demand under the under supply situation? How long could that last? Could that last about a year or do you think it's maybe just six months or could it last for a number of years? Thanks.

Thank you, Ming. From a capacity standpoint for N-type products, do you think others will attempt to increase their N-type poly capacity? Do you believe they will be successful in closing the gap, or do you anticipate that the current disparity between supply and demand will persist due to under supply? How long do you think this situation could last—about a year, six months, or possibly several years? Thank you.

Our production of N-type products is currently between 60% to 70%. From what we understand, our competitors, particularly the leading companies like Tongwei, are at a similar level of N-type production. However, new entrants in the market are struggling to produce N-type products at this stage. Therefore, we anticipate that this year will continue to experience a tight supply of N-type products.

Okay, great. Thank you. One last one and then I'll pass it on. You know, the stock is down 30% year-to-date. What's your view or thinking around another buyback program? Could you add more to the program or restart it? And is that something that you're interested in doing? Thanks.

The new players are nearly unable to produce the N-type at this stage, so we anticipate that this year will still see tight N-type supply. The stock has declined by 30% year-to-date. What are your thoughts on implementing another buyback program? Is there a possibility of expanding or restarting it? Is that something you are considering? Thank you.

Thank you, Phil. We are very confident in our company's operations and we have sufficient cash flows as previously mentioned. However, the market is currently facing significant challenges and there are many unpredictable dynamics at play. The board is closely monitoring the current market conditions and its evolution. We aim to maintain a healthy balance sheet to navigate these circumstances. That said, we are considering the share repurchase plan, but this will depend on the A-share dividend plan, which the A-share board will discuss. Once they finalize the A-share dividend plan for 2023, we will update our investors on whether we will initiate another share repurchase program or use other means to enhance shareholder confidence, such as dividends.

Okay. Thank you very much. I'll pass it on.

Okay, thanks, Phil.

Thanks a lot for taking my question. And actually the 4Q result is decent amid the challenging market situation. So a couple of questions, so first of all, what is the CapEx plan for 2024?

Hi, Alan. This is Ming. So, regarding the CapEx plan this year, primarily this year will be for the Inner Mongolia Phase 2, that's where we're spending most of our CapEx, as well as some of the remaining payments on the Inner Mongolia Phase 1. And there's some small payments on the semiconductor project that's expected to start production this year, and then our silicon metal projects in both Mongolia and Xinjiang. So from that perspective, our current CapEx budget for the year is around RMB8 billion to RMB9 billion for 2024 to implement the above projects and we are expecting that, so in terms of U.S. dollars roughly $1.1 billion to $1.3 billion. And certainly the CapEx is fully funded.

Thanks a lot. So following the question from Phil, because some investors are also asking as to there's $200 million remaining from the $700 million buyback program last year. So this amount of cash is sitting offshore already, and it's not contingent on any of the distribution from the A-share level? So is there any preliminary plans, like if dividends are open for consideration, because some of the peers, some of the ADRs have also announced dividend payouts, which has resulted in good reaction from the market?

Some investors are inquiring about the remaining $200 million from last year's $700 million buyback program. This cash is already offshore and isn't dependent on any distributions from the A-share level. Are there any initial plans regarding the possibility of dividends, especially since some peers and ADRs have announced dividend payouts that have positively impacted the market?

So regarding the $200 million remaining from our $700 million share repurchase program, as mentioned by Mr. Xu before, we will discuss this after the A-share dividend plan. We will definitely consider whether to distribute dividends or initiate another share repurchase. We believe these plans will help enhance confidence in our company and management team. This is Xu, also a Board Member at Zhonghuan Daqo, and the payout ratio for 2023 is still undecided since they have not had the board meeting for Asia. We cannot confirm which program we will implement or the amount, but we hope our investors understand that once Zhonghuan Daqo announces its dividend plan for the year, we will share our information simultaneously, and the board will discuss this matter.

Thanks a lot. That's very clear. So switching gears to some of the technical questions. Seems recently there's some trial in the downstream players in regards to cauliflower type anti-poly. So I wonder if that may help to release the shortage in anti-poly, or are new players able to achieve that type of purity even for the cauliflower type policy? Thanks.

Thanks a lot. That's very clear. So switching gears to some of the technical questions. It seems there's been some trial with downstream players regarding cauliflower type anti-poly. I wonder if that may help alleviate the shortage in anti-poly, or if new players are able to reach that level of purity for the cauliflower type policy. Thank you.

We have been in discussions with our downstream partners like PCL, and from what we understand, it is still quite challenging to produce and type with cauliflower type poly. The barriers remain significant, and while we are monitoring advancements in technology, there is still a long way to go before untied cauliflower poly can be produced.

Thank you, that's very clear. My final question is about the power tariffs. Many investors have been asking about the increase in power tariffs in China. Power prices have been rising, so we would like to understand our situation regarding the deal in Xinjiang and the power prices in Inner Mongolia. What is our perspective on this? Is there a risk of further increases in power tariffs, and could that result in higher production costs? Thank you.

Thank you, that's very clear. My last question is about the power tariffs. Many investors have asked about the increase in power prices in China. We would like to know our perspective on this concerning our deal in Xinjiang and our power prices in Inner Mongolia. Is there a risk of further increases in power tariffs, and could that lead to higher production costs? Thank you.

We understand that electricity costs are rising; however, in Xinjiang, the use of the state grid and local government regulations limit the impact of these increases. Our information indicates that production costs for companies in that region may rise by RMB7,000 due to higher electricity costs. Fortunately, we are less concerned about electricity costs because we utilize a local grid in Xinjiang, and we have an exclusivity agreement with the government. Similarly, Inner Mongolia also relies on the local grid. In fact, one of the main reasons we selected these two locations was their access to local grids, allowing us to benefit from favorable electricity agreements and lower costs.

Thanks a lot, Mr. Xu, Anita, and Ming. Very clear answer. I'll pass on thanks.

Thank you, Alan.

Thank you. The next question comes from Andrew Carpet with Private Investor. Please go ahead.

Hello. So my question is when is exactly the Xinjiang A-type dividend declared? Like what month this year? Is it May? Is it April? July? This is my first question.

Hello. My question is regarding when the Xinjiang A-type dividend will be declared. What month is it scheduled for this year? Is it in May, April, or July? This is my first question.

Based on the Asia regulation and disclosure requirements, we expect to make an announcement sometime near the end of March. After Xinjiang Daqo announces their dividend plan for the year, we will discuss again with our board whether to implement another share purchase program or to distribute dividends.

Okay. So, like in March, April, we should hear also from the Daqo New York Stock Exchange listed company a response on the dividend or the extended buyback or special dividend from the cash balance or something like that? So April, let's say April starts to mid-April?

Yes, yes, that will be the likely timeline, yes, after Asia announces their dividend level.

Okay, thank you very much. Also I want to congratulate you for the increase in production. I think it was 50%, 60%, I don't remember, and also the guidance, very great, while also decreasing the cost. So very great result. My last question is for 2025, CapEx investments, are there any? How much would CapEx be in 2025? So in 2024, we have RMB8 billion to RMB9 billion, so $1.1 billion or $1.2, whatever? So what would be 2025? Do you expect to increase CapEx to have huge products like this year or lower CapEx $500 million downwards?

Okay, so this is Ming. So I will address the CapEx issues. So I think 2025 CapEx is, will be mostly the remaining payments on the Inner Mongolia Phase 2 and some of the remaining payments on our Silicon Metal project. The current estimate is roughly RMB3 to RMB4. So I think that's maybe $400 million to $600 million.

Yes, at the end of 2024, considering you're trading at a quick ratio of 5 or 4.5, which might have slightly decreased due to cash usage, that's an impressive quick ratio. My question is, after the $1.1 billion in capital expenditures in 2024, will cash decrease? Assuming we maintain current prices, and that polysilicon prices don't increase significantly, how much would cash and cash equivalents drop this year to $2.5 billion? Currently, it's at $3 billion. Will it decrease to $2.5 billion or $2.1 billion after the $1.1 billion capital expenditures this year?

Yes, there’s going to be a really rough estimate because it's very much subject to pricing at the beginning of the year. We think based on estimated operating cash flow should be in the range of maybe RMB4 billion to RMB4.5 billion, something above par. So we should be close to say RMB2.5 billion, a U.S. dollar actually $2.5 billion in cash, something on that range.

Okay, and considering the discount from Shanghai listed Daqo which we own 72.4% if I remember, 73%. You're repurchasing, did you continue it in Q1? Like now we're in February 28th, so 60 days passed. Did you repurchase any shares at the current Daqo prices? So that's $21, $24 today.

So, our repurchase program ended at the end of last year, end of 2023. So we don't have a repurchase plan right now, but I think the board is considering a repurchase plan for the full-year. So that's why would want to see what the dividend looks like from Xinjiang Daqo. So once that comes out and…

I thought you had 20% left or 30% left out of the first of the $700 million. I thought you had $200 billion as the other, the first analyst said?

Yes.

Regarding the share repurchase plan, while I was announcing November in 2022, the expiration date of this program is until the December 31, 2023.

Yes.

So, that means because of the date, the program ended in 2023. And we have completed the plan for the $700 million share replacement program.

Can you repeat again? You have completed?

Before the program expired by the end of 2023, we have completed almost approximately 70% of the entire program.

Okay, and I think just so investors know, I think this was due to not being able to buy more at current prices, because you're limited. Like, you can buy only 25% of the volume on your stock exchange I think. You couldn't have bought more right?

Yes, primarily.

Last question and recommendation would be if you could consider a special dividend or a higher dividend yield, as it might attract investors. I believe Daqo is significantly undervalued given that you have zero net debt and own Shanghai-listed shares. Therefore, offering a substantial dividend, such as a 10% or 20% special dividend or a regular dividend, would likely attract more investors. Is that the question?

Okay.

After all, of course, you've recent from Shanghai.

Okay. That's well noted. We'll share that with our board as well.

Yes, okay. Because you're trading at a 0.3 price to book, so and you're increasing revenue by 40%, 50% actually volume, so you should issue a big dividend to attract investors. Thank you very much and have a wonderful year and continue doing what you do.

Great. Thank you so much. Thank you for your interest in the company.

Thank you. So this concludes our question-and-answer session. I would like to turn the conference over back to Ms. Anita Zhu for any closing remarks.

Thank you everyone again for participating in today's conference call. Should you have any further questions, please do not hesitate to contact us. Thank you and have a wonderful day. Good night.

Good night.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.