Financial Data and Key Metrics Changes - Model shipments reached 17.5 gigawatts with revenues of $1.91 billion for Q1 2025, reflecting a year-over-year decline in shipments and profitability [4][5] - Net loss was approximately $100 million for the first quarter, with total revenue down 33% sequentially and 40% year-over-year [5][19] - Gross margin decreased both sequentially and year-over-year, primarily due to a decrease in average selling price (ASP) of solar modules [19][20] Business Line Data and Key Metrics Changes - Total shipments for Q1 were 19.1 gigawatts, with module shipments accounting for approximately 90% [12] - Shipments to the Indo Pacific market grew by nearly 10% year-over-year and 150% sequentially, while shipments to North Asia increased by nearly 20% year-over-year [13] - U.S. shipments accounted for approximately 5% of total shipments, in line with guidance [13] Market Data and Key Metrics Changes - New installations in China for Q1 amounted to 59.7 gigawatts, an increase of 31% year-over-year [5] - The global module demand is expected to remain about 700 gigawatts in 2025, with strong growth anticipated in Asia Pacific, Europe, and the Middle East [16] - China is expected to grow by 10% to 15% this year, while the U.S. market is projected to reach around 50 to 55 gigawatts [60][64] Company Strategy and Development Direction - The company aims to maintain a leading position in the industry by optimizing market strategies and supply chain management while improving technology and product competitiveness [11] - The focus is on high-efficiency cell capacity and high-power products, which are expected to provide a competitive advantage [9] - The company plans to expand its energy storage business globally while continuing to explore technological innovations [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is challenging due to low prices across the solar supply chain and disruptions from international trade policies [5][7] - There is optimism about long-term demand in the U.S. market despite current uncertainties, with a commitment to local production and joint ventures [27][36] - The company expects gross margins to improve slightly in Q2 due to an upward trend in module prices driven by demand [32][33] Other Important Information - By the end of Q1, cash and cash equivalents were $3.77 billion, a significant increase from $2.44 billion at the end of the same quarter last year [18] - The company plans to buy back shares and defer dividends, with an initial buyback plan of at least $100 million [51][54] Q&A Session Summary Question: Can you provide details on ESS shipments? - ESS shipments are mainly targeted at the Asia Pacific, Europe, and emerging markets, with the U.S. being challenging due to trade barriers [26] Question: What are the expectations for margins in Q2 and Q3? - Margins are expected to improve slightly in Q2, with a stable outlook for the second half of the year [32][33] Question: What is the update on U.S. cell manufacturing plans? - Local production in the U.S. is seen as a long-term trend, but current uncertainties make short-term plans difficult [35][36] Question: What are the expected margins for ESS? - The target gross margin for ESS is expected to be in the range of 5% to 10% [41][45] Question: What is the U.S. shipment target for this year? - The U.S. shipment target is approximately 5% to 10% of total shipments, with a low case of around 45 gigawatts [48][50] Question: How does the company plan to handle market share? - The strategy focuses on balancing shipments and profitability rather than aggressively increasing market share [58] Question: What regions will contribute to the expected growth? - China, Europe, and the U.S. are expected to be the largest markets, with China growing by 10% to 15% [60][64]