Amit Dayal: And you didn’t see anything from storage in 2Q, right?
Ke Chen: No. Amit, actually, we talked about this last year, we started our storage initiative actually, in Q2, we already recognized revenue and profit. We talk about the Italy projects, as we continue to see this monetization in Q3 and Q4. Overall, this year, we expect between 8% to 10% of that profit will come in from the storage business. So we are very positive about our storage development here, and you will see more in the coming years.
Amit Dayal: Understood. Thank you for that. My other question was around the margin outlook. Some of them you’ve already addressed. But the 35%, 37% type margin levels, can this be sustained in 2024 also? Or can you help us maybe get some clarity on what are the drivers behind margins? Is it depending on whether IPP or project sales come through in different percentages for the quarter? Like just trying to see — I know there is — it’s a fluid situation for you guys. But is 35% to 37% a little bit higher than normal? Or is that potentially going to be a normal level for you into 2024?
Ke Chen: Yes, that’s a lower margin we are target. And again, obviously, it’s between 27% and 30%. And again, because our — later our project development, we focus on RTP NTPC and IPP model. So that — we believe that will be our margin target going forward.
Amit Dayal: Thank you. That’s all as for now, guys. I’ll take my other questions offline. Thank you.
Ke Chen: Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Pavel Molchanov with Raymond James. You may proceed.
Pavel Molchanov: Thanks for taking the questions. I remember, you have talked over the past year about looking at some new European countries to enter. I think maybe Czech Republic, Greece, Turkey, but it seems like you’ve remained focused on your existing geographic footprint. Can you talk about that?
Yumin Liu: Interesting question. We are continuously looking at new markets to expand our business in Europe. We are looking at the several country stuff, but it’s a little bit too early to talk about it before we ink the deal in the European countries. But literally speaking, we are looking about three to four countries in Europe. As also, as I mentioned, we are also looking to expand our business into Australia, the Asia Pacific area. That’s the plan. And also the plan is for both solar and storage as a combined strategic play for the company inside out.
Ke Chen: Pavel, I just would like to talk about storage because you probably know US storage markets relative to in advance compared to Europe. Europe, a little bit behind. And in Europe, UK is maybe number one right now, but the coming market is Italy and Poland, which we have leading positions. So that’s why we focus on those two markets and to monetize or get the leadership in those two markets. That’s why you see our storage pipeline increase quite a lot in those two countries.
Pavel Molchanov: Speaking of storage, we’re watching battery costs coming down quite substantially. I would love to get your thoughts on the battery market and also if you’re observing module prices down 30% according to some estimates in the last 100 days. Is that consistent with your analysis?
Ke Chen: Absolutely. We do see the CapEx from the two things you mentioned, that for example, today’s price is over $300 and we do see that this price should be going down in the next 12, 18 months or even sooner to like at least 25%, 30% lower. And that is the first part of the story. And CapEx on the solar side led by module price decline, we do have since the — you’re right, about over 30% decline. But in the last three months, I will say, about 20%, 25% in general. It did not really happen too much in the US yet. But in Europe, actually, it happens even goes below the price we can purchase back to before COVID.
