Gener Miao: Yeah, yeah. And last year, the first half year, [indiscernible] for the DG distributors and de-stock. So I think five or six months. And it looks like, on top of that, even not only in the European market as well as other markets, the customers, they are waiting to the bottom of the module price. It looks like stabilized. I think the price is not sustainable. A lot of customers accelerate the purchase decisions, as well as the de-stock. The stock level is going back to the normalized level in Europe. And the past logistic issue, Red Sea issue, so we see the rebound from the European market and the second quarter, pretty sure, is strong quarter for the European market.
Alan Lau: Sure. And in your PowerPoint, I think it’s the first time that you have officially put ESS into the whole price release. So we’d like to know, do you have any quantitative shipment target on ESS? Because I know you have capacity for more than 10 gigawatt hour. So we’d like to know on that one.
Gener Miao: For storage — storage and we build up the capabilities, the teams, products, capacities, and the majority from last year. And the key focus is we develop our R&D capabilities and products and focus on some key markets. And so far it’s in a relatively early stage, but we are confident we will discuss maybe the full year, the guidance, and later this year, maybe the second quarter, third quarter. But this year we think it’s a good opportunity to catch up the markets and build a strong foundation for the next few years. So that’s the key focus, not the focus for the shipment of this year.
Alan Lau: Thanks. Thanks a lot for the comprehensive information. So I’ll pass on. Thank you.
Gener Miao: Thank you.
Operator: [Operator Instructions] Your next question comes from William Grippin with UBS. Please go ahead.
William Grippin: Excellent. Thank you very much. My first question was just on your 300 plus patent portfolio. I was wondering if you could provide a little more color on where those patents are granted. Are any of them international? And, one of your peers is out there asserting their IP rights related to some TOPCon technologies. Just maybe, how are you thinking about that? How do you view that relative to your patent portfolio? Thank you.
Gener Miao: The patents and that, we put a lot of R&D efforts in the recent couple of years and we developed and discovered over 300 TOPCon patents which we developed ourselves. On top of that, we have additional more TOPCon patents by acquisition from others. And the patent is our key differentiator and the key strategy is — and we licensed to one of the top 10 module company and one of the top five solar cell companies. And it’s illustrating how we’re strong and capable our R&D teams and the cutting edge technology.
William Grippin: Okay, yeah, appreciate that. And then just on the 26% mass production N-type cell efficiency that you referenced in the press release, how do you expect that to translate into mass production module efficiency and when do you think that would ultimately be realized in mass production? Thank you.
Gener Miao: 26% sale capacity, we have reached to that level, the mass production and our target is end of this year, 26.5%.
William Grippin: All right, appreciate the time, Thank you.
Gener Miao: Sorry, sorry. I think that for the standard, the 182, I think, we are targeting roughly 610 to maybe 620 watts for standard 182 modules.
Operator: [Operator Instructions] Your next question comes from [Rajiv Chaudhary] (ph) with Intrinsic Edge. Please go ahead.
Unidentified Analyst: Yes, good morning. I have a few questions. First of all, just in terms of housekeeping, can you tell us what the depreciation number was in the fourth quarter and what you expect it to be in 2024?
Gener Miao: So sorry, could you repeat again?
Unidentified Analyst: Yes. The question was about depreciation in the fourth quarter and what the expectation is for 2024?
Charlie Cao: Oh, depreciations. It’s roughly, I think, [RMB16 billion to RMB17 billion] (ph) for 2024. So each quarter roughly RMB1.5 billion to, I think, RMB1.8 billion.
Unidentified Analyst: Sorry, can you repeat that? RMB1.5 billion to RMB1.8 billion?
Charlie Cao: RMB. Yes, depreciations.
Unidentified Analyst: And that’s in 2024. What about the fourth quarter?
Charlie Cao: Last year, right?
Unidentified Analyst: Yes, ‘23. Yes, sorry.
Charlie Cao: Yeah, similar amount. It’s not significant difference.
Unidentified Analyst: So around RMB1.5 billion in the fourth quarter?
Charlie Cao: Yeah, roughly.
Unidentified Analyst: Okay. And then what was the total CapEx, capital spending in 2023, and what is the expectation for 2024?
Pan Li: For CapEx, yeah. Let me go into some details. For the 2023, our total CapEx is around RMB18 billion. And we expect a range in 2024 is from RMB11 billion to RMB15 billion, depends on the market.
Unidentified Analyst: I see. Okay. And out of this RMB11 billion to RMB15 billion, is it almost 100% related to the module business or is there anything related to the storage business as well?
Pan Li: It’s related to our integrated solar manufacturing.
Unidentified Analyst: Okay. The next question is about the charges that you had in the operating expenses. You mentioned that the write-down of assets as well as the settlement with the customer. If they had not happened, then the total operating expense would have been the same as the third quarter. So by my calculation, that is about RMB60 billion or about $85 million. Is that — sorry, RMB0.6 billion or about $85 million. Is that the correct number?
