SPI Energy Co., Ltd. (SPI) Earnings Call Transcript & Summary

Good afternoon. I would like to welcome all of you on behalf of the SPI Energy team. I'm Randy Conone, the CFO of SolarJuice and Head of Investor Relations for SPI Energy. We are pleased to hold the first SPI Energy Investor Day and are very excited about the immense prospects for the company's solar and other green energy businesses over the next decade. And now I would like to turn over the presentation to our Chairman and CEO, Denton Peng.

Good afternoon and thank you for everybody joining today's our first SPI Energy Investor Day. My name is Denton Peng, I'm the Chairman and CEO of SPI Energy. I'm really very honored to welcome you here because it is the first time we do the Investor Day, listening to our investors, they say, you need make an Investor Day, to invite the investor to join [indiscernible]. Thank you. So I think that now we finally held our first investor day. When I listen to [indiscernible] investors just said a few weeks ago and they say, the only the first day of the company. They now have 30,000 investors coming in the first [indiscernible] only had 3. So I think we have more and more when we -- to show what we are doing here. So today is a very exciting. So next page, please. Okay sorry. Okay. So our wish is to build a great renewable energy company. So myself have over 20 years experience in renewable energy sector. So normally, the big industry for renewable energy from the energy generation, energy transport, energy consumption. So what are we doing? So with my background of the last 20 years in the energy and renewable energy sector, we have limited resource to find the way to a sector that have a potential to grow [ building ] future. This is what we are doing. So we want to find some sectors that have big potential growing sector in the renewable energy sectors. SPI Energy have -- when we starting this company, 2006 in Roseville, just a few miles from here, a company called SPI Solar. SPI Solar is starting as a solar [indiscernible]. But why the company want to now growing as a renewable energy company? I mean we see the last 20 years when we started to produce our solar sales at $8 per watt. And today, we see the solar sales, we can easily now sell about [indiscernible]. We can easily produce the electricity in 20 years ago [indiscernible] produce electricity less than $1, it will be June. But now after less than 20 years, we see our electricity cost production costs holding from $1. Now we see many areas like Texas and mainly in California, we can reduce electricity costs less than $0.02 or less than $0.03. So this way we are seeing -- there's still a future potential that's why we want to build a renewable energy company. And this is the porfolio with -- what we have select. The first company we developed is a called SPI Solar. SPI Solar is starting due solar project starting from Hawaii, California. This is why we have a very, very strong pipeline in Hawaii because Hawaii have a, at this time, a big in safety program and [indiscernible] California. And then the company starting to grow into other markets, like Oregon, Massachusetts, Illinois, Maryland. Now SPI has a very strong pipeline in across the U.S., which we believe starting from 7 years ago, 5 years ago, now this asset become a very huge return for the shareholder and for SPI. So essentially, we have signed some big contracts to sell in some portfolio to like a big [indiscernible] Brookfield. So Hawaii and Oregon project. Second, portfolio, we are doing well today. Later today, I think our SPI team Jack Lee [indiscernible] will give you more detail about SPI. Jack could you show up. Thank you. And now I want to introduce to Orange Power. Orange Power is our platform that produce solar electricity to the grid normally we try to have a 20-year or 25 years of power purchase agreement, very durable project. Recent some projects like Hawaii, we sell to Greece at a price of USD 26, USD 28. We'll do some projects in Greece in Italy, U.K., for example, in Greece, we sell electricity to local grid at EUR 0.28, EUR 0.26. So sometimes, we better keep these projects and have a stable cash flow for the next 20 years and 30 years. So there will see the company has invested more than $100 million to build a very strong pipeline portfolio in Greece in Italy, United Kingdom and Hawaii. Of course, later on, our Orange Power team, Paul and Vassilis, they will give you more detail. Paul can you show up.. Now the third stream portfolio we have developed low is a SolarJuice. SolarJuice is a leading distribution solar company in Australia. They are starting to promoting the Tesla Power in Australia, they are one of the first not-as-large power distribution for home and energy. So I think also now this company has been profitable growth for the last 3 years. And this quarter, [indiscernible] they're doing the best ever quarters. So I think SolarJuice now continue growing 1 of the leading brands, a reputable in brand in the country and also from Australia growing to New Zealand and other markets. The founder of SolarJuice, Rami and Andrew also presented here. Yes Rami, [indiscernible]. As in later, Rami and Andrew will give you more detail about SolarJuice. I know Rami personally when he's starting the business completely solar. So I see some picture when he is very young. So I think now of course is for we're now building a very strong relation to building these SolarJuice in Australia. And most importantly, another business we call it Solar4America. This brands have been existing for in U.S. the last 2 decades. If you see many building is [indiscernible] like [indiscernible]. You can easily see they have some building called Solar4America buildings or its initials. We rebranded this brand to a module manufacturing 2 years ago. We're starting from here is here to [indiscernible]. Now Solar4America have become the largest solar module manufacturing in California and also the leading manufacturing second largest in the nation. This company already been profitable from quarter 4 last year and continued growing the profit and thanks for the Inflation Reduction Act of the bill passed by August. So I think later, the CEO of Solar4America, H.K. will give you more detail of these companies. So all this business is a profitable business. But why you see the company still in the last few years is losing money? So we in the meantime, we try to grow in the future. So we also have some business we are now doing the growing business we call. One of the business is EV business we just acquired 3 years ago called Phoenix Motorcars. Phoenix Motorcars is now 1 of the leading EV commercial vehicle company. Now they already have 4 million miles -- driving miles. Not like many EV companies still 0 start-up, but this company already have many EVs on the road. And the second one I want to introduce is -- there is value potential is today also will show you our colleague, in the Folsom. If you buy assets of the [indiscernible] users manufacturing facility in Folsom [indiscernible] joining front here. And originally EdisonFuture, we designed that next generation of a pickup van with solar power and also with the EV as highly energy power together we call hybrid. Later on Dr. Yang and Mr. Zheng will give more detail about our Green Hydrogen business later. And this is the most interesting story as a founder of LDK the largest solar wafer company in that time 20 years ago, we are one of the largest suppliers of the global wafer market. So we started to think of building a solar wafer factory for U.S. So starting from last year in all our facilities and process in Sumter, South Carolina. So U.S. now we hope to build 1 of the first largest solar wafer company in the United States for the new technology. So thanks for also one of our key customers, [indiscernible] today Sent the people come here to share information. So [indiscernible] is 1 of our key customers in 15 years ago for wafer technology. So this is also we use out some of our cash flow to reinvestment some of our their business. So over the last 6, 7 years after we built in NASDAQ from 2016, we have accumulated reached more than $720 million in this business. To build this platform, we are seeing we are well positioned to build the company to next level of growth, especially the company in the U.S. -- the manufacturing business. Before we dive into deep in looking at each of these business units, I want to also some key investment highlights of the company. So in recently years, we have entered a solid change of strong revenue growth that have placed us in a clear pace in near-term profitabilities. So we obviously we lead the change were actually moving forward as we benefit from strong industry here, including incentive under Inflation Reduction Act in the U.S. I think later on, Randy will give more detail about the Inflation Reduction Act, including the model, later we will have [indiscernible], we have $0.07 of earnings for every [indiscernible] we're producing here and also for $3 for green hydrogen production in our facilities both can produce. So all these incentive programs that we are doing that, not today, we already invest this technology 5 year, 6 years, 2 years ago to building this platform. This is why we think we are well positioned in the regulated sector in both solar, EV and hydrogen sectors in [indiscernible]. I think we have simply an outstanding leadership growth that impressive combination of the technical expertises, operational efficiency and strategic insights. So I believe this combination of the talent will allow us to continue as our vision to build a great renewable company in the next decade. I will also highlight with our $720 million raised in the last few years, and we built a platform company, together we built the company to next level. You will be able to hear it also today from many of our top leaders today to give dive deeper into each business. And before to do that, I will quick snap our share of 2023 outlook. So. In April, we report $177 million revenue in fiscal 2022. This is our second guidance, previous guidance. And looking ahead, we're also projecting $250 million to $300 million in revenue this year and is the first time first year with a net profit of $29 million to $36 million in this year. This guidance is not including -- this is including the $0.07 in of plus module production and also SPI Solar and Orange Power developments these included, of course, we are waiting all this guidance declared this year. As I mentioned a moment ago, I'm joined today by many of our top leaders for our various business units. You will hear from us. Let's do all the remainder of the investor presentation, and thank you for everybody. I also want to introduce our Chief Operational Officer, H.K. to give you the strategy for the next. H.K.?

Thank you, Denton. Hi. This is H.K. Cheong, and thank you for coming again, and good afternoon. So I would like to start the presentation to give you a little bit of operating highlights of quarter 1 2023. So in quarter 1 of 2023, we have begun manufacturing and deliver, of course, making the U.S. [ Enphase ] from Solar4America state-of-the-art, fully automated protection life in Sacramento, and you will see later on after the discussion here. So we have also showcase making the U.S. solar modules. So including the 550-watt modules, I think it is right here too. And multiple trade shows that the Community Solar Power Summit in the solar North America and many more. So our Solar4America 550-watt modules will also showcase in the 948-gigawatts. The [indiscernible] project in Ohio that is expected to be completed in June 2024. So we have also appointed a leading silicon wafer industry expert as the CTO of the recently formed SEM Wafertech subsidiary. So lastly, we have jointly announced the addition of the newly leased facility in the South Carolina to expand the solar wafer and the solar module manufacturing capacity. Now I'm excited to share more information with you today about Solar4America, our rapidly expanding American-made solar module manufacturing business. Solar4America began production last year in the 140,000 square feet state-of-the-art facilities in California right here and this cutting-edge facility boast the latest [indiscernible] or we call it the 182 milliliters cell technology, so which has allowed us to produce high-efficiency solar module for various market. So to meet the increasing demand, we resell additional 50,000 square feet of space to expand our production capacity even further. So it's next door. We have leased the space next door. So our current annual solar module capacity in California is an impressive 700 megawatt. So with the addition of our 270,000 square feet facility in Sumter, South Carolina, we expect to get 1.5 gigawatts to our production capacity in the near term. So our customers [indiscernible] have diverse needs. So we have developed a wide range of products to serve residential, commercial and utility markets. So our commitment to quality and safety had a certification from UL, CSA and ETL, and we are proud to be on the California CEC listing as well. So importantly, so our solar module has been approved by multiple financial institutions, so including the dividends, Mosaic and Sun Life Financial. So this partnership is solidified, confident in our products and enable us to provide accessible financing options to our customers. So looking ahead to 2024, the combined capacity of California and South Carolina facility is expected to reach 5 gigawatts, more than double of 2023 that we targeted. So as I mentioned a moment ago, our California facility came online in the second quarter of last year, and it has been supplying customers with American-made solar modules ever since then. In April this year. So we, in fact, just -- we announced the addition of the newly leased facility in South Carolina. So we expect to begin solar module manufacturing operations at this facility during the fourth quarter of this year, so which will help us to reach our year-end target of 2.4 gigawatts of production capacity. So we will also be manufacturing solar wafer at the same facilities, which I will talk later in today's presentation. So I want now to draw your attention to highlight to our various certification approval and qualification at America sort of [indiscernible] in the renewable energy industry. So firstly, the international labs such as CSA, UL and ETL have strictly tested to certify our solar modules. These certifications are testament to the quality, safety and reliability of our product. So it's important to note that we believe in continuous improvement and [indiscernible] that is why we are collaborating with a third-party labs for extended tests on our product, ensuring that they meet and exceeding the industry standards such as IPC, 2x, 1x, 2x and 3x. So in addition, as mentioned earlier, we have already gained an approved, gained the trust and approval from the top residential financial service companies, like including dividends, Mosaic and Sun Life Financial. So this recognition allowed us to offer to our customer very competitive financing option for their solar installation, making the clean energy more accessible to homeowners nationwide. So we are also proud to be qualified by the government's clean energy incentive program like CEC and the Florida Solar Energy Center, FSEC. So this qualification enables our customers to benefit from various incentives and further promoting the adoption of solar energy. So as we continue to grow. So we are actively pursuing bankability to a large scale project. As everyone knows at that we need bankability. So this ongoing effort will allow us to participate with an even more significant renewable energy incentive driving position, positive change on the large scale as well. So overall, Solar4America extensive certification, approval and qualification, demonstrate our commitment to our customers with the highest quality solar modules. So we are confident that our dedication to excellence will continue to drive our success in the renewable energy market. Yes. I think this slide is -- there's a lot of opportunity here. So in our addition of the U.S. made solar modules and solar wafer manufacturing operations [indiscernible]. So with the Inflation Reduction Act expected to provide a strong tailwind for both business lines through 2032, in fact, 10 years from now. So importantly, the [ Act ] provides a robust framework that not only benefit the Solar4America, but also the support the entire renewable energy sector. So a significant component of the act is $260 billion in federal tax credit, this tax is currently directly benefit our customers making solar energy more affordable and accessible to a broader audience. So moreover, the tax credits at a favorable environment and investment, which in turn accelerates the growth of the renewable energy industry. So another essential aspect of the Inflation Reduction Act is the $27 billion dedicated to accelerated and clean energy technologies, specifically targeting initial reduction in disadvantaged communities. So the funding presents a unique opportunity for Solar4America, expanding our reach and make a tangible impact on underserved populations. So we are committed to leveraging these resources to bridge the gap in access to clean energy solutions and contribute to creating more equitable and sustainable future for all. So furthermore, the long term commitment to 2032, in fact, it's 10 years from now provides us the stable policy landscape to operate. So this extended period of support allowed us to plan and execute ambitious projects. We're confident knowing that we have the backing of the government and a clean path forward, I think this is huge. Overall, the trend is expected to drive domestic solar energy market to the $16.9 billion by 2030 as the market reaches a projected of 126 gigawatt of installed capacity. So the domestic production requires to meet the rapid growth is expected to be 50 gigawatt annually by 2027. So right here to date, we are only 700 megawatts. It's a huge potential for us. So looking more closely at the tax incentive or the IRA, our domestically produced solar modules are eligible for a 40% tax credit, which include the base of 30% and pass additional 10% for being American-made. So our solar modules, this more manufacturing business is also eligible to receive a $0.7 per watt of being American-made solar modules. So give the benefit in effect now until 2032. So our smaller solar project also benefit from the IRA and is eligible of up to 70% tax credit opportunity is located in a fossil fuel energy community or selling to low-income families. So Solar4America has quickly become an industry leader in the production of the high-quality solar modules and our cutting-edge facility in Sacramento is currently producing a range of the output options from the 330-watt modules to powerful 500-gigawatt modules [indiscernible] with the ability to produce such diverse range of modules, we are well positioned. And to meet the needs of the wide categories of customers in industry. So 330-watt, 410-watt is big build from the Generation 1 automatic line in fact, 410-watt and 550-watt 144 are being produced at our new Anaheim production line that you will see later today. So this is also very exciting. Solar4America is embarking on the exciting endeavor to produce solar sales specifically for the U.S. market. Our initial product lines will be input the high-performing [indiscernible] and innovative M12 HJT solar sale. So with HJT series, we are introducing a hemp solar technology that maximum efficiency and deliver exceptional energy conversions. So these cutting-edge solar cells have been engineered to harness sunlight and convert into clean and renewable energy, ensuring a greener future. So additionally, we are proud to present the M12 HJT product, which combined heterojunction technology with advanced [indiscernible]. So this groundbreaking solar cell offer increasing efficiency and enhanced power generation capabilities, pushing the boundary of renewable energy solutions. A little bit of our channels. So our repeating product lineup is meeting customer demand in residential, in commercial and utility project applications. So starting with the residential market, our sales channel are statically designed a wide array of customers. We work closely with national distributor channel, CD, [indiscernible] ABC or they have hundreds of branches in [indiscernible]. And regional distributors enlarged installer, ensure that our high-quality solar modules are accessible to homeowners across the country. So this multi-approach allowed us to penetrate various segments of the residential market effectively. So moving on to the commercial and utility projects, Solar4America has established strong relationships with the key stakeholders in these sectors, including commercial and industrial entities, utilities, developers, independent power producer, IPP engineering, EPC firms, and financial investors. So our ability to cater to the unique needs of these customers demonstrate our commitment to provide the tailored solar solution across a diverse industry. So our growing lease of certified customers include many well-known names. So these partnerships, not only [indiscernible] and the quality and the reliability of some modules but they also serve as a testament to our excellent customer service and support. So looking ahead, our R&D [indiscernible] demonstrate our commitment to continuous to [indiscernible] and staying ahead of the market. Our R&D efforts, we have restarted in numerous IT achievement related to manufacturing, efficiency and quality improvement. So this innovation into the machine learning enabled in our system for also detecting defects an automatic IV measuring [indiscernible] for product, solar module production line and cell replacement machine for solar modules. So additionally, so we have developed a [indiscernible] PVA back heat and cold solar cell shrink replacement for solar module production line. So this ground-breaking technology allowed us to maintain the highest quality standards while minimizing the waste and reducing the cost, in other words, reduce the scrap. So we have also designed a solar power hub, for showcasing the seamless integration of our solar modules into the residential application. So in terms of product innovations, so our development -- our development layer improves module capacity up to 670 watt for M12 modules and also modules with smart racking system and ultralight VIP modules and smart AC modules. So this cutting-edge products cater to various customer needs while ensuring optimum performance and efficiency. So we believe Solar4America innovative speed and dedication to R&D set us apart in the renewable energy market. So our ongoing commitment to developing new technologies and refining existing one will ensure that we remain at the forefront of the industry, providing our customers with the best possible solar modules. So before we move to the other area of SPI operations, I would like to briefly summarize the key investment, highlights that make Solar4America so attractive. So our state-of-the-art module manufacturing facility provides us with a significant production capacity that enables to meet the growing demand of the market. So we have established a top brand recognition, a well-established sales channels across the last installer, regional distributors and national distribution channels, which position us well for continued growth. So furthermore, our [indiscernible] intellectual property led a superior manufacturing process that ensure high efficiency, reliability, quality in all of our products. So our track record of growing revenue, or margin, growing profitability over the past 4 quarters demonstrate our sound business strategy and our ability to execute on our growing bank. So with a favorable policy in an environment that includes a tailwind that economic incentives, such as the Federal Tax Incentive, we are well positioned to benefit from this growing benefit, growing demand of the renewable energy solutions. So our experience management team, I have been in the industry like Denton, about 16, 17, 20 years in the industry, making nothing but making solar sales and solar modules. So we are confident that our continue focus in innovation, in operational excellence and strategic balance sheet will drive sustained CapEx and shareholder value in the coming years. I do like to cover a little bit of this very exciting story about solar wafer in [ Indianapolis ]. So our SEM Wafertech subsidiary is set to become a key player in the solar wafer manufacturing industry in the U.S. So formerly registered in the third quarter of last year and led by the industry pioneer and technology experts. So SEM Wafertech is expected to reach a production capacity 1.5 gigawatts in 2032. So with increasing demand for solar energy solution in the U.S. is an investment or locally solar wafer to avoid potential supply issue from overseas manufacturer. So with the launch of SEM Wafertech led SPI will gain new high-margin, high revenue-generating business segment that complement on our [indiscernible] Solar4America solar module manufacturing business. I think that was pretty much put us in the local content position. So we are targeting the initial delivery of the production of solar wafer in the U.S. from our first silicon wafer manufacturing facility in Sumter, South Carolina, which will create a high-quality and reliable solar wafers that meet the standards of solar module manufacturing in the same facilities. So importantly, the Inflation Reduction Act of 2022 has created not only attractive incentive for solar module manufacturers but also for solar wafer manufacturers providing $12 per square meter of solar wafer incentives. So this will benefit our operation for years to come for the next 10 years. So fueled by the IRA in the domestic solar energy market is forecasted to reach $16.9 billion by 2030. As the market, we just projected 426 gigawatts of installed capacity. So the domestic protection required to meet this rapid growth is expected to be 50 gigawatt annually by 2027, huge opportunity. As with the Solar4America, SEM Wafertech also benefit from positive tailwinds, including the Inflation Reduction Act and its climate provision. So the under the IRA climate provision, we can expect long-term extension of the investment tax credit. ITC, manufacturing tax credit, manufacturing production credit and effective tax credit monetization. So this incentive have expected to drive significant new investment into solar, solar wafer, solar cell capacity over the next decade, providing a favorable environment for the growth and expansion of the SEM Wafertech. For a company that produce solar wafer in the U.S., including SEM Wafertech will receive $1 as I mentioned per square meter of solar wafer produced. This incentive not only helps to offset the manufacturing costs, but also encourage further investment into the space. So moreover, the additional provisions, the benefit of entire industry. So this provision includes the $500 million for the defense production tech, which aim to secure domestic supply [indiscernible] and strengthen national security. So they have also $29 billion greenhouse gas destruction fund to support the clean energy initiative as well as a $5 billion in climate pollution reduction grants for state and local government to invest in emission reduction projects. Furthermore, the Department of Energy, DOE, has allocated $40 billion in the loan guarantee to support innovative big energy project, providing companies with the necessary financial backing to develop and deploy groundbreaking renewable energy solution in the United States. So overall, this favorable [indiscernible] present a very unique opportunity for SEM Wafertech to capitalize on the growing demand for solar energy, while benefiting from the substantial support providing by the U.S. government. So we are very optimistic about the future prospects of SEM Wafertech and look forward to contributing to the green energy revolutions. So overall, SEM Wafertech is ideally positioned to have established a robust solar manufacturing based in the U.S. as the country seeks to reduce its reliance on [indiscernible] supply, I don't think it ends supply to the U.S. that can put significant reach of this economical hail and complete business and also energy [indiscernible]. I think the next several slide is pretty much is the product spec of our waters that we plan to build in South Carolina facilities. So maybe just let me go through this aspect. How soon to open in a state-of-the-art facility in South Carolina to use cutting-edge technologies to produce high-quality solar wafer efficiently and cost effectively. So we will have 2 type of wafers between different sizes and are built cleaner than other wafers. So they will also further -- this will also features high minorities, carrier lifetime, lower oxygen content and higher overall efficiency. By manufacturing this critical component domestically, we are supporting the U.S. solar module -- solar industry growth and contributing to the nation energy independence. So moreover, our commitment to research and development, we have ensured that we will remain at the forefront of the product technology and [indiscernible]. So as a result, we can provide innovation solutions to meet growing demand for clean energy, while also [indiscernible] the creation of high steel job and stimulating economic growth in the South Carolina. Just to give you a stat, this kind of quick view of the facility in South Carolina. As we already mentioned, we expect to reach 1.5 gigawatt of solar wafer production capacity by the end of 2023 is our goal to reach the 5 gigawatt capacity in 2025. So thank you very much. I'm now to turn the presentation to my colleague, Rami and Andrew to speak about SPI Australia and SolarJuice. Thank you very much.

Thanks, H.K. I'm Rami Fedda. So I'm from SolarJuice Australia. I'm joined along with my colleague, Andrew Burgess working with us as a co-founders of SolarJuice in Australia. And it's -- today is a pleasure for me to speak about SolarJuice. And SPI is very successful Australian solar solutions [ battery ] provider within Australian market. SolarJuice Australia was established in 2009. So SolarJuice was established in 2009, the founder is myself and Andrew. We have a combined 50 years industry experience in solar. SolarJuice has established itself as a market leader in Australia, have been servicing over 5,000 customers across Australia. We manage supplier and installer relationships. We're working tirelessly to build brand equity and grow profit margin. Our team actively seeks market feedback to ensure we remain at the forefront of customer needs and industry trends. At SolarJuice, we have built a reputation as a channel market of choice to service Australian solar market by developing premium tech savvy brand image, and we can effectively provide a point of difference versus our competition to foster customer loyalty. Leveraging our long-standing supplier and customer relationships in Australia, we are now expanding our reach through to New Zealand and the Pacific Islands. The strategic growth allows us to capitalize on new market opportunities, while continuing providing our proven service and support to our existing customer base. I now will let Andrew speak further on our growth strategy in Australia. Over to you, Andrew.

Well, thank you, Rami, and I'd like to thank everyone for joining today and inviting us to come and present and talk to you about SolarJuice and what we're doing in Australia. Please apologize for our Australian accents. But it's great to be here and to be able to go through the factory yesterday was wonderful to see the factory being ramped up. So in terms of SolarJuice, our growth strategy sort of hinges on expanding our distribution network. We've been around in Australia since '09. But really, the next phase of our growth is all around both Asia and the broader Pacific. In terms of what we're being able to offer is quality products, as you've been able to see in the previous slide here to our network of installers whether that be wholesalers, whether that new retailers to be able to deploy the best-in-class products in terms of renewable energy. As we know, the demand for clean energy is growing exponentially with governments and consumers across the globe recognizing the importance of transitioning away from fossil fuels. The Asia Pacific region, in particular, represents a significant opportunity for SolarJuice to capitalize on this demand, given its rapidly expanding population and the increasing awareness of sustainable energy. We've certainly been able to -- we see a great opportunity to address this growing energy demand of other SPI business units, namely Solar4America. By doing so, we can show a sustained supply of high-quality products through our channel in Australia and to be able to help support SPI's activities in terms of Solar4America. SolarJuice has consistently demonstrated strong growth and profitability in our financial performance over the last 4 years as the Chairman pointed earlier. In 2022, we successfully grew our revenues to nearly USD 133 million. This remarkable growth can be attributed to our commitment to innovation, strategic partnerships and expanding our reach in the Asia Pacific region. Our gross margins have remained above 9% for the past 2 consecutive years, reflecting our ability to maintain cost efficiency and operational excellence. In addition to this robust growth and solid gross margin, SolarJuice has achieved its fourth consecutive year of net profits. This consistent profitability is a clear indication of our financial strength and stability as well as our ability to generate value for shareholders. Our prudent financial commitment and commitment to delivering high-quality products and services has positioned SolarJuice for long-term success. As we look ahead, we remain optimistic about the future of SolarJuice in the renewable energy market as a whole. With increased global awareness and the importance of transitioning to sustainable energy, we believe that demand for our products and services will continue to grow. As such, we are confident in our ability to maintain our strong financial performance and deliver long-term value to shareholders. And that concludes the first half of today's formal presentation, we'll take a short break. And the presentations will resume at 5:00 p.m. Eastern or 2:00 p.m. Pacific time. Thank you very much. [Break]

I would like now -- turn over your attention to SPI Solar the wholly-owned subsidiary of SBI Energy that is focused on solar project development. I'm Jack Lee, Senior VP of Global Project Development for SPI Solar. As a global development company, SPI Solar specialized in engineering, [ procurement], construction and conserving of utility and distributed solar power plant, energy storage and customized sustainable energy solution. SPI Solar's broad expertise in [indiscernible] evident in its impressive track record having completed over 150 megawatts of power projects across 9 countries and facilitate more than 2 gigawatts of component sales showcasing our ability to navigate the complex renewable energy landscape effectively. One of the key strengths of SPI Solar is its long-term relationship with leading component suppliers and EPC or engineering, procurement and construction company. This strategy partnership enables SPI Solar to achieve the best price to performance for its customers, ensuring that projects are not only cost-effective but also deliver [ optimal ] performance and efficiency. As part of the SPI Energy family, SPI Solar benefit from the synergized and resources available within the group. This enabled SPI Solar to deleverage the expertise and capabilities of other business units to expand its reach and enhance its product offering. We have built a large geographically diverse project pipeline in the U.S. with nearly 250 megawatts of projects currently in various stages of active development across multiple states. Allow me to provide you with a quick breakdown of the pipeline, which is -- which showcases the breadth of our work. In our home state of California, we have 13.39 megawatts, 13.39 megawatts of solar project currently in development, the golden state has long been a leader in renewable energy, and we are proud to contribute to its ongoing effort to transition to a cleaner and more sustainable future. In Hawaii, we are developing 10.24 megawatts of solar energy capacity to Aloha states, [ Bandon, Sunshine ] and [indiscernible] to renewable energy make it a prime location for solar development. In Massachusetts, we have a 6.5 megawatt solar PV project here with a 5.45 megawatts hour battery energy storage system. The innovative combination allowed for enhanced grid stability and improved utilization of solar-generated electricity. In Illinois, we are working on an impressive 78-megawatt of solar project, which will significantly contribute to the state's renewable energy goal and help reduce its reliance on fossil fuel. In Maryland, we have a substantial 170 megawatts of solar project in development, commenting our presence in the mid-Atlantic region. And finally, in Oregon, we have an 80-megawatt community solar project that will provide clean, affordable energy to local residents and help the state achieve its ambitious renewable energy target. As you can see our project pipeline is both diverse and expensive, reflecting our ability to navigate various market and regulatory environment while delivering high-quality solar solutions. To further illustrate our capability, I would like to highlight 2 high profiles development that exemplify our commitment to accel. First we have -- this is a peer project in Hawaii. First, we had completed 709-kilowatt system at the Golden 1 Center in Sacramento, which at the home of the Sacramento team. The solar installation not only provides power to the arena but also set as a symbol of the teams dedication to sustainability. Second, we have bought a 512-kilowatt system at center in Los Angeles, home of the [indiscernible]. The high performance solar array underscores the venue commitment to reducing its current footprint and is expected to provide clean energy for decades to come. Each of these systems has an estimated life of 30 to 40 years, demonstrating the long-term value and reliable of SPI Solar project. Looking ahead, SPI Solar is well positioned to capitalize on the growing demand for renewable energy solutions. We increased -- we're increasing awareness about the importance of transition to clean and sustainable energy process. There is a tremendous opportunity for SPI Solar to continue its expansion. We are excited about the prospect of SPI Solar and look forward to sharing its future development with you. Thank you. Thank you for your time and attention. Up next is [ Paul Chei ], CFO of Orange Power, SPI's independent power producer business. Paul Chei will be joined with Wassily, VP of European Asset Management for Orange Power.

Thank you, everyone, for standing by our facility to attend our SPI's first Investor Day. This is large power, independent power producer. I want to say something for my introduction. So after the solar development, we have the independent power producers, which will generate electricity to the grade. So in the business nature, we are following after the solar development business. My name is Paul Chei, the CFO of Orange Power. It's my great pleasure to introduce you our exciting power producer subsidiary called it Orange Power. Orange Power from my personal perspective represents a great example of SPI's excellence and commitment in the renewable energy and plays a vital role in -- on our ongoing success for the whole group. So as an independent power producer, Orange Power has made significant investment over $100 million in renewable energy sectors. Majority of them are in Europe. We also have a project in U.S. So Orange Power focus on generating the stable cash flow by owning and operating the renewable energy assets. So primarily, as you can see, Orange Power has an impressive 43.84-megawatt capacity in operation. We believe this strategic investment very much demonstrate our global reach and highlight our capability on these opportunities. This is the chart that you can see our different projects. I'm going to go through quick so any question, any detail we can discuss after the meeting. So here you go. This is our 30th project, Bridge project, which has 4 plants total of 7.47 megawatts. With FIT, as you can see, different from EUR 0.15 to EUR 0.25 per kilowatt hour. This is a 4 plants of SRV project. We also have a major project in Greece called the Sinsin project. Total capacity is 26.6 megawatts with FIT close to EUR 0.20. I want to bring everybody's attention that given we have a litigation related to 4 plants of Sinsin project, our operating results have not been consolidated in our book. With some significant liability, which Janet, our Group CFO, will cover and discuss a little bit more in her part. We are now trying to resolve the issue. We believe once the matter is resolved over USD 70 million asset, including the EUR 30 million cash will be consolidated back to the group, which will improve not only the entity but also SPI's operating results. So you can see I'll go through quick. This is several different projects, Sinsin project total 26.6 megawatts. We also have 1 small project close to 1 megawatt in Italy and also 2 projects in U.K. So thanks to [indiscernible] we hope we can have more projects in the U.S. This is the Hawaii project, close to 0.7 megawatts, 20-year PPA. So looking ahead, we will expand our business to green hydrogen as well. This is a great news to share, which means, in other words, we're not only to sell the electricity but also we will sell hydrogen. We see the tremendous growth opportunity and ceilings for Orange Power as the demand for clean, sustainable energy, continually seek to increase globally. We are -- and also our Board has approved the spin-off IPO project, which I believe will unlock holder value for the SPI shareholder as well. In conclusion, Orange Power represents a crucial component of SPI. With this strong track record of investment, stable cash flow and the significant past in operations, Orange Power is well positioned to continue driving growth, creating value for SPI Energy and its stakeholders. We are excited about the future of Orange Power. We will look forward to sharing our ongoing success for you guys in the future. Thank you for your time and attention. Up next, Mark Hastings, the company's -- Phoenix Motorcars' Senior VP of Corporate Development and Head of Investor Relations.

Thanks, Paul. Thanks very much for joining us today. My name is Mark Hastings. As Paul said, I'm at Phoenix Motorcars. And for those of you who are not familiar with Phoenix, we're an EV manufacturer that was partially spun off from SPI Energy via an IPO on the NASDAQ last June. We trade under the ticker symbol PEV. And SPI currently owns about 82% of the outstanding shares of Phoenix. We were founded in 2003 and we're headquartered in Anaheim, California. Phoenix Motorcars is a leader in sustainable and 0 emission, all electric, medium-duty commercial vehicles. We serve a wide range of customers, including municipalities, airport parking facilities, hotels and campuses, and are driving the transition to cleaner and more efficient transportation solutions. Phoenix Motorcars commitment to sustainability and innovation is evident in our long and impressive track record. Today, we serve over 50 commercial fleet customers to whom we have deployed over 120 electric shuttle buses and trucks. And late last year, as Denton mentioned a few minutes ago, we achieved an important milestone as our vehicles collectively traveled over 4 million miles that showcases the reliability and performance of our technology. Among our more well-known customers is NASA's Jet Propulsion Laboratory in Pasadena, who is actually our first customer, and they took delivery of our first Gen 1 vehicle back in 2015. WallyPark, airport parking, who many of you may have heard of or even used, are located at LAX and other airports took delivery of its first Phoenix vehicle as the following year in 2016. WallyPark remains our largest customer, and they have over 40 of our vehicles, and we delivered the most recent vehicle to them in the first quarter. So they're still taking delivery of our vehicles. In addition, other customers include the City of Irvine, the U.S. Department of Defense and Air Vistara airport parking among many others. So these organizations' adoption of electric vehicles that demonstrates their commitment to reducing greenhouse gases and -- greenhouse gas emissions and improving their quality, highlighting their trust in our vehicles. As the demand for sustainable transportation solutions continues to grow, and we think we're well positioned to capitalize on this trend by expanding our product offerings and customer base. Our commitment to research and development ensures that we will remain at the forefront of electric vehicles and technology, enabling us to deliver increasingly efficient, reliable and cost-effective solutions to our customers. So in addition to addressing the market's need for next-generation commercial vehicles and pickup trucks and SUVs, we also offer a full range of EV chargers, telematics solutions for fleets, easy infrastructure solutions and also vehicle maintenance and service programs. But we are excited to be planning 3 major product launches over the next 3 years, beginning with our fourth generation drivetrain, which we call Gen 4, effectively. So we'll be introducing our fourth generation drivetrain within the next -- just a couple of months and this will provide a bridge to our upcoming fifth-generation drivetrain, which will be -- could be based on our own purpose-built chassis. The development of our Gen 4 vehicles was the first time in which we deployed our asset-light business model. This asset-light strategy extends both upstream to our suppliers and downstream to our manufacturing partners. This approach allows us to remain agile and cost-effective while maintaining a strong focus on quality and innovation. Upstream, where we're leveraging our strategic partnerships with R&D firms and engineering service suppliers, enabling us to access cutting-edge technology and expertise without the need to build these services in-house. On the downstream side, we are partnering with customers and third-party manufacturing facilities to develop assembly facilities across the U.S. and locating them closer to our customer base, further reducing capital requirements and enhancing our scalability. Our existing Anaheim production facility, which, as I mentioned, is our headquarters as well, has been reconfigured to increase production, and it will serve as a training and showcase facility. Our manufacturing and assembly partners send their technicians to Anaheim to learn our processes and procedures. They take it back to their facilities and implement them, which will ensure standardization and quality across our entire production network. So 1 issue that the entire industry has faced over the past couple of years is access to secure battery supply. We experienced difficulties with battery supply in 2022, and we've addressed that by signing a long-term supply agreement with CATL, the world's leader in EV batteries. This agreement provides us with long-term strategic access to CATL's CapEx and related products, and that will ensure a stable and high-quality battery supply for our vehicles. Importantly, our fourth generation drivetrain is expected to achieve lower production and materials costs compared to our Gen 3 vehicles, thanks to the use of standardized components and subassemblies allowing for cost savings and more efficient production. As an example of the improvements that we've made with our Gen 4 design when comparing to Gen 3, we have reduced the number of parts and subcomponents in our vehicles from 450 parts with our Gen 3 vehicle down to 55 with our Gen 4 vehicle. So literally an 80% decrease in our parts -- in our parts and subcomponents. And that will cut production hours more than in half and will be a major step change in our cost structure. So looking further ahead, we expect to launch our Gen 5 vehicles in 2024. Building upon the experiences and design innovations of Gen 4, the Gen 5 vehicle will represent a significantly forward for Phoenix as we will be producing an entirely new vehicle, that is all our own. The design of our fifth generation vehicle is already well underway and includes our own purpose-built chassis design. And this move demonstrates our commitment to innovation and vertical integration as well as our determination to maintain control over all critical aspects of our production. By achieving chassis independence, we'll also solve the second major impediment to long-term growth. As I mentioned, the first impediment to long-term growth is secure battery supply. The second impediment to long-term growth is securing chassis supply. With the ground-up chassis design, we can customize the vehicles to meet specific customer needs while maintaining standardization and quality. This flexibility will enable us to better address the unique requirements of the diverse customer base that we have and adapt to evolving demands in the EV market. By accommodating customer requirements and staying ahead of the market or -- we think our Gen 5 vehicle will deliver greater customer satisfaction and further solidify our position as a leader in the commercial EV industry. In 2025, we plan to bring to market a line of light-duty consumer and commercial vehicles under the EdisonFuture brand. This innovative brand will include pickup trucks, SUVs and delivery vans designed to meet the diverse needs of both individual consumers and businesses. The EdisonFuture prototypes were unveiled at the 2021 LA Auto Show and the 2022 Consumer Electronics Show, great reviews. Both the EV -- excuse me, the EF1-V, the van and the EF1-T, the pickup truck, showcase the brand's commitment to cutting-edge design, performance and sustainability. Pickup truck is a robust and modern multipurpose vehicle suitable for work, travel, family or personal use in varying road and environmental conditions from city streets to off-road adventures. Its versatile design ensures it will cater to a wide array of consumer needs while maintaining a sleek and stylish appearance. The EdisonFuture delivery van utilizes the same chassis and platform as the pickup truck series resulting in a robust and modern multipurpose bands that can serve the growing demand for sustainable commercial transportation solutions. A standout feature of all EdisonFuture vehicles is our patented solar panel array, which can be found on either the armadillo pickup truck, the bed cover or on the roof of the SUV and the van. These solar panels help extend battery range, further enhancing vehicle's performance and reducing its environmental impact. As a result of Phoenix executive management team's deep experience and relationships within the EV ecosystem, we have established strategic relationships with many of the leading participants in the global EV industry. As I mentioned already, we formed a recent partnership with CATL, the leader in global battery technology. And this collaboration will focus on codeveloping batteries for our product lines, including the CapEx for the upcoming Gen 4 vehicles. We're also exploring potential cooperation on Gen 5 and expect to do so. And with Gen 6, also known as EdisonFuture in the future. Together, we look forward to deploying the cutting edge, rolling e-chassis to things favorable as well paving the way for enhanced efficiency and performance. Our second strategic partnership is with [ Alton ] a renounced name in the battery industry. We joined forces to codevelop a swappable battery system for Phoenix product lines. We call this partnership the Phoenix Exchange and we unveiled it 2 weeks ago at our Anaheim facility in conjunction with the Advanced Clean Transportation Expo in Anaheim. This innovative technology will allow customers to enjoy greater convenience and flexibility and can swap out a battery from debt to fresh and under amend. We're also excited to have formed a partnership with IAT Automobile, 1 of the global leaders in EV, engineering and design. They have helped us bring our Gen 4 to market in under a year and at much lower cost than we could have ever achieved, we were doing it on our own. We've also partnered with Pegasus Specialty Vehicles to jointly develop Type A electric school buses, specifically designed for the North American market. Our agreement targets a minimum of 300 Type A school buses to be built within the next 3 years. And then finally, we've teamed up with Fermata Energy, which is a global leader in vehicle to grid or V2G technology. They actually were at our headquarters 2 weeks ago when we unveiled the Alton swappable battery system and displayed our V2G technology with them as well. So overall, we represent an integral part of SPI Energy's diverse and dynamic ecosystem. We focus on sustainable zero-emission transportation solutions and we have a growing list of satisfied customers. We think we're poised to make a significant impact on the rapidly evolving EV market. At the helm of our organization is a seasoned and incentivized management team with an impressive average industry experience of nearly 30 years. Our collective expertise and dedication have been instrumental in driving our company forward and achieving tremendous milestones. We pride ourselves on our asset-light business model, which allows us to be agile and responsive to market changes. By partnering with world-class organizations, we can focus on innovation and growth while minimizing capital expenditures. We are not a pre-revenue company. In fact, we delivered our first trucks nearly a decade ago. Since then, our EVs have logged, as I mentioned several times, 4 million, 0 emission miles on the road that showcases our reliability and performance. Over the next 3 years, we planned 3 major product launches, further expanding our portfolio and catering to various market segments. These new offerings will help solidify our position as a leading player in the EV industry. We are strategically well positioned to take advantage of the ongoing shift from internal combustion engines to electric vehicles, as the demand for clean transportation solutions continues to grow. So we're excited about the future prospects of our company and its impact on SPI Energy's bottom line, and we look forward to sharing our success with you at future events like this. Thank you all for your time. And next, I'll turn it over to Dr. Bo Yang and Dr. Zhou to discuss EdisonFuture.

Hello, everyone. I'm Dr. Cheong Yang, [indiscernible]. We are excited to share with you the latest development in our hydrogen business, a vital element of our commitment to sustainable clean energy solutions. Phoenix Motorcars acquired hydrogen fuel cell manufacturing assets, including a state-of-art automated robotic fuel cell assembly line from Altergy Systems in the third quarter of 2022. The acquisition has propelled our EdisonFuture unit to the forefront of hydrogen fuel cell technology. With the new resources and after competitors policy and market analysis, we define our business focus on developing advanced electrolyzer solutions for hydrogen production and as well as the Fuel Cell Solutions for hydrogen consumption. Hydrogen is the most abundant element in the universe and it serves as clear and high efficient energy source due to its high energy density. Hydrogen can be produced using renewable energy sources such as solar and wind. At the same time, hydrogen has diverse applications that build like transfer application, power generation, chemical production and electronics. According to the Department of Energy, hydrogen is set to join electricity as a major energy carrier in the coming years. The overall hydrogen industry market is projected to experience continuous growth, both globally and in the U.S. with a compound annual growth rate of 8.8% between 2023 and 2030. And even more impressive growth can be seen in a green hydrogen market, which is expected at a growth rate of 38.2% between 2022 and 2030 in the United States. This rapid growth highlights increasing demand for clean and sustainable energy source. The increasing demand on green energy also leads to a significant increase in the electrolyzer market, which is anticipated to grow at a rate of 23.8% between 2023 and 2033. This robust growth underscore the significant potential for innovation and expansion within the hydrogen sector. By leveraging our state-of-art manufacturing facility and cutting edge fuel cell technology, EdisonFuture aim to meet the increasing demand for sustainable hydrogen based solution across various industries. The hydrogen industry is also benefiting from the great U.S. government support, which further underscores the merged potential of EdisonFuture hydrogen business. In fact, Edison infrastructure rule demonstrates the government's commitment to advancing clean energy solution by allocating substantial fundings and various aspects of the hydrogen sectors. Moreover, the Installation Reduction Act also offers attractive tax credit from 2022 to 2033, aiming at support production and adoption of hydrogen technology. These incentives include up to $3 per kilogram of hydrogen production tax credit, 30% of tax -- investment tax credit and up to $40,000 for mid and highly duty fuel cell electric vehicles. In addition to federal support, there are a variety of debt level incentive programs, regulations, brands available across the nation. Our EdisonFuture unit is now utilizing this advanced manufacturing facility located in Folsom, California to design and produce hydrogen product for a wide variety of applications. Our manufacturing facility is positioned with remarkable production capabilities, the advanced robotic fuel cell assembly line can produce a single fuel cell every 30 seconds. We also have a comprehensive on-site research and development laboratory with comprehensive software and hardware. EdisonFuture is at the forefront of hydrogen innovation, working diligently to develop cutting-edge electrolyzer solutions that can efficiently and cost effectively produce hydrogen on a large scale. Our commitment to research and development in this area will help lower down the cost of hydrogen production, making it an increasingly attractive and successful energy option for various industries. We're also focused on 2 main types of electrolyzers, the alkaline electrolyzer and the PM electrolyzer. In addition to our work in electrolyzers EdisonFuture is also focused on developing hydrogen fuel cell solutions for energy storage and consumption. Fuel cell converts hydrogen into electricity, producing only water as byproduct, making the main environmental friendly alternative to the traditional combustion-based power generation methods. Our hydrogen fuel cell solutions are designed to cover a wide range of applications. One example is fuel cell application program to expand our current warehouse catalog on side of the current lithium products. Also backup power telecommunication applications as well as transportations, such as highly loaded long distance transportation and solar fuel cell battery hybrid transportations. By harnessing the power of hydrogen in those diverse use cases, we can significantly reduce greenhouse gas emissions and contribute to a cleaner, greener future for all. Thank you. This is our presentation. And now I'm going to turn over things to Janet Chan, the Chief Financial Officer of SPI Energy. Thank you.

Thanks, Dr. Yang. And ladies and gentlemen, I'm Janet, the CFO of SPI, and warmly welcome again for attending our first Investor Day today. We are now undergoing the audit review of our Q1 2023 figures. So we are expected to have it out early next week. So today, I'm going to lead you through our past announcement, 2022 and the past year's figures. Yes, as you can see, we have achieved good increase in our revenue in the past 4 years. And although our gross margin is a little bit because we have expanded different segments, and then we are now trying to slow down the lower GP segments and then increase our higher ones. So this we will have a better component of this in 2022, and you can expect to look at it. Okay. This is our 2022 profit and loss account versus the 2021. So we are doing better than year before. And I think we are expecting to have better one in the coming years, as you can see and learn just from our team members of all segments, right? I would like to cover this first. Our CFO of Orange Power, Paul just mentioned about Sinsin cases. So I would like to have some more insights for you for the Sinsin ones. So here, we have investments in Phoenix, $70 million here that was our investment in Sinsin, because of the dispute, we lost our control in Sinsin, so we started to disconsolidate Sinsin starting from January 1, 2017. That means this is the carrying amount of the equity in Sinsin as of December 31, 2016. It doesn't included all the operating results ever since then. So the management is now actively negotiating with Sinsin [indiscernible] to have it resolved. Once it's resolved, we will consolidate and have all those results coming back if we get resolved. So the investment cost here, that was as of December 31, 2016. And the payable here is that $60 million cost duration payable, it will include the cost duration and also we accrue interest for it because it was not yet plateaued. So final amount will be decided once in the second. This is some more information regarding Sinsin, okay? Our revenue by segment. As you can see, we have a fourth -- five segments in 2022, which is the sales of EV components. This is all from Australia. We are doing a very good job in Australia. Thanks to Andrew and his team. And we also have this roofing, that was come from the [ Solar4America ], the business way -- we acquired the asset of [indiscernible] and then we do the roofing business here, but actually management has decided to slow it down in the future because of the -- not that good GP ratio. And this is the current power plants that we're earning electricity revenues, there was 1 -- also 1 part of the Orange Power section. This is the Finnish operations. And you can see that we don't have the segment information of the modeling revenue, which then -- H.K. has just shared with you, very good outlook in the future, and we will see the segment of the moderate manufacturing in our Q1 and also in 2022 -- 2023, which will be quite good increase to our total revenue. So I think this is what I would like to share with you today. So maybe I will leave it to Randy, our investor relationship [indiscernible]. Randy, please?

Thank you Janet. This slide shows us several challenges in the presentation, and it's the best synopsis of SPI Energy. I encourage investors to take a little extra long look at this slide. All of our solar and other divisions are poised for strong growth. We have a highly experienced management team and we expect to substantially benefit from the recent U.S. Inflation Reduction Act. This slide shows many of our products and also the staging or progression of how one product is incorporated in a larger products and then in the actual collection of solar energy. Many current planned SPI Energy products should benefit from an IRA statute. And this slide also illustrates the synergy, as I just mentioned, between our divisions and our products. Some of the more critical IRA benefits to the company include: the $12 per square meter ingot and wafer benefit or SEM Wafertech; the $0.07 per watt benefit for solar for Americas modules; the 70% investment tax credit for Orange Power's IPP projects; the $40,000 commercial EV and the $7,500 personal EV tax credits; and finally, the hydrogen power benefits of $3 per kilogram for electrolysis and a 30% investment tax credit for fuel cells. That concludes the main portion of the presentation. And now we'd like to open up the presentation to questions.

So the first question that we received was from Tim Moore, the EF Hutton, Research analyst who covers SPI Energy. Tim posed the question, do H.K. and Denton still expect the California-based solar module revenue to double each quarter during 2023. And how is the labor sourcing at this facility lately, will we have enough hiring throughout the year. Denton?

I think the labor question, probably H.K. will answer later. So presently we see a lot of challenge to the labor hiring in U.S., especially in California now we are facing but we have doing a lot of training now. So [ everything on program ] we should be have a good chance to hiring a lot enough employee in this summer. And for the revenue side, we still see a lot of demand because it seems -- the revenue seems because we are ramping up. It should be very good possibility that our module shipments will be close to double probably quarter-by-quarter in the next few quarters. But of course, it really depends on how quickly we can get all the employees hired and training. And also, this is a most important, especially the training of the employees, some employees after a few months' training they probably have some chance they find another job or maybe we are hiring again. So maybe H.K. can share more on the hiring process in California.

Thank you, Denton. So in this facility, we have 2 lines. So 150 megawatts and also 550 megawatts, as you will see later on. We have about 120 to 130 people as we speak. So we managed to run 3 shifts right now. So 1 shift on the older line and 2 shift on the new line, we are probably in a shortage about 30 to 40 people. So once we get it, I think we will be able to run 2 shifts at least for the new -- for the old line and full 3 shift; 3 shifts means 24 hours per day. So that will allow us to ramp even higher. So I think to speak -- to answer to the question, are we doubling, I think we have a high chance of doubling our revenue each quarter due to the fact that we are increasing our manpower, as Denton has mentioned, clearly, is the shortage of experienced, skilled workers here. But I think we have, due to our network, we manage to [ pull for ] having the expertise to help us to train the local people. Yes, the whole process will take probably about 2 to 3 months. So we are confident that we will be able to do 160 or 170 people by the third quarter.

We have a few other questions. The second question also comes from the EF Hutton Research analyst, Tim Moore. Tim says, congrats to the SolarJuice Australia team's success the past decade based in my favorite city in the world. Can SolarJuice expand in the Pacific rim beyond New Zealand to Indonesia or possibly Brazil or South Africa?

Thanks for the question, Tim and you're more than welcome to attend and visit our facility in Sydney anytime you're in town. So in terms of expansion, yes, I mean I think countries like Indonesia, I think, to have the fourth most populous -- fourth most populous country in the world with some 270-odd million people compared to a country like Australia with only 26 million. So for us, the Southeast Asian region is most definitely a huge opportunity. It's going to be a market that's evolving very quickly as a lot of trade come out into that middle income bracket, so demand on electricity, demand on power is going to be something that we'll see huge opportunity with as well as not just solar, but also battery storage. So for us at the moment, probably not so far as South America as was asked. But yes, certainly, in our region, countries like Indonesia, countries like Vietnam, the Philippines, Thailand, these are certainly areas that we think that there is huge opportunity and growth potential for.

And everybody can ask questions right now. So let everybody ask a lot.

I don't think we have any more remote questions. Are there any questions from the in-person audience?

It's a very exciting implementation, no doubt. And your vision is very synchronized. It looks like solar, battery, fuel cell and the future. So it is very exciting. What do you think your biggest challenge is now? This execution is very challenging for sure. There are a lot of shortfalls. What are the biggest challenges that you think you may face and what type of help you will look at?

Thank you for the question. So really, thank you for coming today. So SPI, I almost everyday, I convince myself, what's the challenge? We see the challenge almost every day. And from my last 20 years' experience, I made a lot of mistake, paid a lot of -- so called learning fees. And of course, we also made a lot of achievements and a lot of excitements. So I think for the last 20 years, you see the renewable energy sector did a lot of improvement from solar, from EV, from battery, from hydrogen and for also other areas like wind and also other renewable energy sectors. What we forecast because we see this is that will create a very strong synergy. And this is really our future needs and all our kid's needs. When I start the solar business 20 years ago, I said, wow! it's $8 per kilowatt. This only can be for satellites, this is not for real life. After I proved that maybe in 10 years I think if I have a chance to bring the solar electricity production, if you know less than $0.20, I think will be nice in our lifetime. This is why you see you come to our project in Europe at the time, all the policymakers that make the policy, like PPA or [indiscernible] price about EUR 0.26, EUR 0.24, here you see we're seeing some customer come here. They do the solar in the U.S. They [indiscernible] see the some of our [indiscernible] at USD 0.26. But now -- we see a lot of solar projects just a bit last year. It's $0.02, less than $0.03. So this is already a power cheaper than most of which are embedded in the source. Even I see in China, the electricity we see somehow is already cheaper than any kind of resource, one of the cheapest resource of general electricity is why you see this, I say, sometimes that might have been come so quickly. It's why I think now you're seeing the solar -- now nobody is thinking about solar to be expensive. Now we just see how to make solar more affordable to the industry. Same for the battery, if you see that now, if you chart now, we have invested a lot of storage technology in different kinds of technology we have seen. But now you see that actually, you see a lot of this to the same change we do for solar last 20 years' back. Battery will be same in the next 5 or 10 years, it will be one of the most available source to storage electricity. This now I see when you [indiscernible] power and not how many power we sell in Australia and how many power we're now using in recent investment. Yesterday I learned from Rami and Andrew we are selling the power to Australia reduced a lot on power price, the demand increase is huge. So now you're seeing more and more like you have seen -- you see the same change probably will happen in hydrogen. Hydrogen now you see not for an Inflation Reduction Act probably a $3 a kilo for green hydrogen production incentive in the U.S. But as you know, Europe will be more, this is not a fact. Europe gives EUR 4 for green hydrogen of last year, the shortage of energy, all those things happened last year, the war, all the things. But even there hydrogen is still one of the best solution for transport electricity because solar, wind and other enabled a lot of -- they have a lot of advantage but in the meantime, a lot of weakness. Solar only generates in the day, how about night, even you have batteries but how the battery energy density on 0.4, 0.5. Hydrogen, however, has highest energy density, now we can [indiscernible]any density about 280 tons, 300 tons than current battery. This is why a lot of hydrogen probably in the next really energy. Because now we see now they're lot -- you see the benefit. And this is why we have investment in the fuel cell and also hydrogen business. Of course, renewable energy is a big sector, but we see everything will copy the same story of the solar and especially, thanks for -- could you give me last page -- Randy just shared this with everybody. So I think they thank for the Inflation Reduction Act. So they can -- a lot of incentive program, not only what we're doing. There are a lot of things if you see the incentive program. But this is an area that we see we already participate. And this is really, I think, the big challenge. We think how -- because when you do so many business, you usually forecast. If you think about our company, it's almost similar to Tesla. But Tesla is a huge company, but we are much smaller. How we can competing and can be success in this area. It's why we select the strategy, will be forecast, we use our limited resource that we can use well and our resource can be more. We spend $1, we agree that somebody can spend $10. We need to do something very strong, and we are familiar. This is why starting to do wafer because I spent almost all my last 2 decades in this business, I would keep a lot of resource in this area. I think even I close my eyes, I always think how to produce a wafer in this business. So this is why I come back to produce the wafer because I have a lot of resource in this area. And everybody knows that producing wafer is not easy. I mean there also a lot of margin there. That's why a lot of institution and a lot of investors contact me, they want to have to doing wafer made in U.S. So I think we will be -- [indiscernible] also look for the module [indiscernible] and the good thing for us, the advantage for us because we are all very familiar with the model. We have been like -- actually, we have been the model in the industry for the last 20 years. All are many, many firsts in this industry. And also for the fuel cell and the project development and because the most important things; we have already from 0 to 1 or even 0 to 3 or 4, same like Phoenix, like it is future. We are not 0. So all these business structures, we are already 0 to 1 to 3 or to 4. Because normally, you spend a lot of money. This is why we spent $720 million, just from 0 to 1 or 0 or 2. But now I think most of business is starting to get profitable. So we will use our profit to reinvest in the business. Then answer to your second question, what's the challenge? All this business mean the CapEx growing. But each business, we show them to the investor, because all the investors only want investor profitability. We already 1 or 2 or 3. This is why these days, a lot of investors chase us, they want to invest in the solar module business because this solar module business is already very profitable from last quarter 4. And a lot of investors contacted Rami and Andrew, they want just only invested [ is just in ] Australia because they are leader. So a lot of Australian investors that are chasing Andrew and Rami, "I want to be your investors." Same like wafer, they know my background. You know I can build a wafer again. So I also did all the major brands of the customers or the famous platform on wafer. So this is why a lot of them are chasing to build this on. So this is why we are building the solar wafer factory in Sumter in South Carolina and also the local community of the Sumter and also South Carolina very welcome us. We are very incentive and also we share they are kind of very exciting. They will say, "where you hire, where you want to start your production?" So we see this is a challenge, but also opportunity because all these sectors is very excited by many investors. For example, then even how current -- our future technology, we have not yet settled at coming to see your investments. Some investors want to write a check of $20 million just as well when we're ready. So that in this business, I say, no, [indiscernible]don't you receive and why do not invest in other, but they do not, just want to invest in hydrogen. So for us, our challenge, of course, always capital, even we have already spent $720 million to build this [indiscernible]. But in order to create a great company like Tesla, you need experience, experience, experience. But good things, we are not 0, we are already 1. We want you for 1 to 10 to 100. Thank you for your questions.

We spoke of the price of electric vehicle to your solar sales and somewhere around as low as anywhere $0.03 a kilowatt? Question I have is what is the price of hydrogen today on today's market without the subsidy?

Yes, currently hydrogen price, it has several components of the hydrogen price with production cost and transportation cost. So now like in California, for example, there is a high gestation, the price can be like $8 to $15 something like that. But like the better governments -- and the DOE, Department of Energy has a road map together to, display, like other several program like hydrogen shots, that goes to 1 on 1, in one decade to produce hydrogen at $1. So that's one decade. And also there are bifurcation like Infrastructure Law also requires hydrogen costs to be produced at $2 in like 2036. This is a very ambitious goal, lot like all the challenges ahead. So that's why just like the company is putting a lot of efforts, for example, by achieving construction like $80 billion to create like at least 4 hydrogen hubs, just to create the production and worth demand for hydrogen. [indiscernible]