Ismael Guerrero: Sure. Look, in general, when the interest rates move up, puts pressure on project ownership because at the end, you need to be given a differential from the interest rates. Now you need to bear in mind that a project is an asset that lasts 40 to 45 years. So it will have time to what interest rates are higher and then where the interest rates are lower. In terms of capital availability, we see terms of capital in the market. I think that people raised a lot of money in the past couple of years to be deployed on this sector. I’m not seeing any capital constraint right now; actually, the opposite. I think people are having pressure to allocate the capital on the sector. I think that there is, right now, at least the feeling I have is that there is way more money than projects ready to be invested on.
Huifeng Chang: Hi, Brian, this is Huifeng.
Shawn Qu: Huifeng?
Huifeng Chang: Yes. Hi, Brian. For funding costs, there are actually two dimensions. You are correct, on one dimension in the general capital markets, all costs are going up, and we see that, too. But we are in a very unique space. The entire world are pushing for investments into the renewable space to fight the climate change. So we are taking advantage of that, a lot of ESG mission planning are coming into the space. We work with those investors to our projects in every part of the world. But on the other hand, a lot of projects in different markets, the government, the local financial institutions and also investors, they want to push into that direction. So we also partner with them to lower our funding costs.
Operator: We will now take our final question from of .
Unidentified Analyst: So my questions are basically focused on our battery storage business. The first question is pretty quick. So do we have any guidance for the battery shipment for the first quarter?
Shawn Qu: For the first quarter…
Yan Zhuang: No. So the guidance is for the year.
Unidentified Analyst: Okay. Okay. I understand. So my next question is related to the gross margin of battery business. Since we noticed that lithium price has dropped a lot lately. So how much will it help our battery gross margin for the first quarter of 2023 and for the whole year?
Yan Zhuang: How much — sorry, how much what?
Shawn Qu: Will it help?
Yan Zhuang: Okay. So it really depends on project by project. But overall speaking, we do have a mixed pricing mechanism on the battery cell supply agreement. So it’s partially indexed on the lithium pricing. So we are benefiting for sure. And I believe the entire industry is also benefiting from this lithium price going down.
Unidentified Analyst: Okay. I understand. And I noticed that along with our utility scale storage products, SolBank, we also released a residential storage product, EP Cube. As we see the competition in residential storage market, it’s getting more and more intense. So what advantages does EP Cube have and which markets that EP Cube target?
Yan Zhuang: Yes. So first, to answer the last question on the margin side, I think as you know that on the utility storage side, we’re actually targeting mid-teen gross margin. And the — sorry — yes, starting from the SolBank. And for EP Cube, the margin is much higher. So anything ranging from 30% to 40% gross margin. That’s pretty in line with the market. And we’re actually launching a setting in the U.S., and we will start to sell in Europe in Q2 and Japan, so very quickly around the similar time. So by year-end, we should have a global launch. And we don’t really — we provided some annual guidance on volume, which is 100-megawatt hour. However, for the real growth scale will be next year for EP Cube and the same with SolBank for next year.
Unidentified Analyst: Okay. Understood. And my last question…
