Charlie Cao: I know. I know. And we did have some impairment — inventory impairment in second quarter by the end of the June. But we don’t expect any additional or significant impairment for both third quarter and the fourth quarter. We don’t expect and everything is ordered and we are in good position and we believe our price is pretty nice if you compare our ASP with the small market price, and we don’t expect the inventory impairment.
Philip Shen: Great. Okay. Thank you for all the detail. I’ll pass it on.
Charlie Cao: Thank you.
Operator: [Operator Instructions] Our next question today is from Brian Lee of Goldman Sachs. Please go ahead.
Unidentified Analyst: Hi, thanks for taking the questions. This is Grace on for Brian. I guess my first question, just to follow up to the ASP questions earlier, I just wonder if you can talk about the ASP trends by maybe end markets and by different geography? Just asking because we have heard that some of the markets, especially the DG market have seen really high channel inventory. So can you provide a bit more color on the ASP trends? Thank you. And I have a follow-up.
Gener Miao: Yeah, sure. Normally, we see a DG market is relatively ASP higher than utility. That’s what people think. But at the current stage, we see a special situation in the US market especially, right? So the US market, because of many reasons, the digital market is more pressured than the utility market. That’s what we have observed. I think personally we believe a very important reason is because of the, let’s say, the supply side, right? So if the supply side is using a fully traceable, let’s say, raw material, or they are just play the opportunity game on the spot market. So I guess that’s one of the reasons why we see just oversupply in the US DG market in such short term. For the rest of the world, we believe that the DG market is relatively healthy, so we still see a strong DG market.
Even, for example, in Europe, right now there are some pressures from the inventory side, but in the long term, we are still a big fan of European market no matter it’s DG or utilities. So we believe that the pre-remarked speech we have is starting digesting, so it will take some time, but it will be there. That’s what we believe.
Unidentified Analyst: Great. Thank you. And then my second question on your shipment guide, your 4Q shipment guide of 23 gigawatts, kind of implying a flattish quarter-over-quarter growth. But I think historically your 4Q is much higher than 3Q. Is this driven by the orders delay that you referenced on the prepared remarks or is there something else? And also, can you quantify how much of the delay was that and when do you expect those orders to come back? Thanks.
Gener Miao: Yeah, thank you. So we are relative — provide a relative conservative numbers which is — I think is the high end of our annual guidance to which will be around 75 gigawatts. Still, on the order book side, we have more than what we need, but we still have some supply bottleneck. That’s one of the reasons why we continue to expand our capacity, try to fulfill all these commitments we are making. So overall, we are fully confident that we can beat our, let’s say, guidance if needed. It depends on the supply side and the market trend. And your follow-up question is about if you’re talking about next Q1 or next year’s order book. Again, for this next year’s total demand side, we are fully confident the market will go up by another 20%, even 25% compared with 2023.
So in the key market, we still believe the high quality, high efficiency, N-type TOPCon product is still in some of the, let’s say, some shortage. That’s why we still have the confidence we will continue to build up our order book and extend our market share next year.
Unidentified Analyst: Okay, thank you. I’ll pass it on.
Gener Miao: Thank you.
Operator: [Operator Instructions] Our next question will come from [Rajiv Chaudhri] (ph) of Intrinsic Edge Capital Management. Please go ahead.
