Amit Dayal: So the three closings for the fourth quarter that are pushed out to the first quarter ’24, how much in dollars does that amount to? Is it $30 million to $40 million that was previously expected you were going to come in in the fourth quarter…
Ke Chen: Yes, you’re right. Yes.
Amit Dayal: Okay, so nothing has been lost, basically just pushed out.
Ke Chen: You’re right. We just push out this project closing in Q1.
Amit Dayal: And these are just — I don’t know if you already mentioned, these are all U.S. projects or European projects.
Ke Chen: Yes, I would say half-half. Half from U.S., half from Europe.
Amit Dayal: Okay, thank you. And then with respect to the storage pipeline, it looks like it’s going to be a big year for you in 2024. I know you’re saying 15% to 20% of overall revenues. Is that based on attach rates to the projects you have in the pipeline that you expect to close on, or are these separate standalone storage opportunities for you guys?
Yumin Liu: Those are the standalone independent storage facilities, not including the hybrid solar power storage.
Amit Dayal: Okay. So there is potential upside, I guess, depending on what type of projects you close, to that number?
Yumin Liu: I will say yes. The growth of an independent storage portfolio is significant across the board.
Amit Dayal: Understood. And just — maybe just a general comment on the industry. These pushouts and any slowdown that you may be seeing, obviously, some of it is related to the interest rate environment. How is the industry grappling with all of this? And do you think next year can be a period of smoother execution for you guys, just from a macro driver perspective, than what you saw in 2023?
Yumin Liu: I will say that it is the delay of the closing just based on the timing of the projects. For example, that in Europe at least two portfolios will be pushed. The team is still working on it and maybe luckily we can close by the end of the year. But that’ll be a happy surprise. But conservatively it will be closed and confidently it will be closed in Q1 next year. And slow execution, I do not think that will be the case, although this year it is happening to almost all sectors. And we do have seen some slower execution from the investors. But we do have seen, as I mentioned earlier, the speed of old friends is picking up.
Ke Chen: Amit, a last thing. I think you see this more credit given to the U.S. community solar, like the Treasury just give additional 10% ITC in October. So some of this pushout will help us in terms of profitability to closing next year.
Amit Dayal: Okay, so some of this pushout is also related to just some of the regulatory aspects of maybe getting more concrete, I guess, going forward.
Yumin Liu: Exactly. And also, Amit, I have to say that one of the closings in the U.S., we voluntarily decided to push that 1 to Q1 because we decided to change the structure of the sale. Instead of doing NTP sale, we are trying to do a COD sale. But to do COD sale, we have to do the EPC procurement and everything as we do want to benefit from the CapEx savings. So anyway, we do have foreseen that 2024, not only Q1, will be strong, but also the whole year of 2024 will be a good year for the company.
Amit Dayal: Okay. Thank you, guys. That’s all I have.
Yumin Liu: Thank you.
Operator: Thank you. This concludes today’s Q&A session. Thank you all for participating. We have closed the conference. You may now disconnect.
