Luke Chen: Yes. On the GAAP operating loss, in fiscal year 2022, our non-GAAP operating loss narrowed to 1.6% of net revenue as compared to 4% last year. And the fourth quarter non-GAAP operating loss was less than 1% of net revenue and we reached profitability at non-GAAP operating level in the month of December. Just two of my colleagues explained the margin expansion and our efficiency on expense, I would like to highlight this narrowing of non-GAAP operating loss mainly attributable to two key drivers. The first, with the customer network we have built up throughout the years, we have been able to sell high-margin products and improve the quality of our revenue mix. We have focused more on profitable and healthy revenue expansion to improve our margin profile.
As you can see, we have delivered 35% of growth rate in gross margin, which was 4x of our revenue growth rate. And our overall gross margin has improved from 5% to 6.2%. The second key driver is on the technology. We are being assisted with our own developed tech solutions. We have been able to streamline our operations and significantly improve our operating efficiency. We have achieved our revenue growth with much less expense investment. As our CEO just shared with you that our spending has been more disciplined. We will continue to work hard on these key two drivers together with the scale buildup to reach profitability.
Gang Yu: Taking the same question from Francis. Yes, let me take your second question from Francis about our technology investments. We believe €“ we truly believe that technology forms our core competence. We have invested heavily and will continue to invest. Let me just give a few examples on what we have done. First, we have continued to improve our supply chain. For example, in the past, we have fulfillment centers. And in China, it’s very €“ and constantly to build fulfillment centers, so we formed separate funding FCs with some of our suppliers, vendors and formed FCSVs. And we made tremendous progress in logistical side. In this year, we probably expect another 10 new what we call fulfillment centers to build up. That will help us to deliver more timely to our customers.
We also build a continued model to optimize transshipment between FCs. And also recently, we are applying in ITC to create health content in short videos and text. Some videos to create a lot of reviews, for example, one short video of less than four minutes resulted in more than 590,000 views. So, these are created by ITC and with women to talk about health advisory. Along these lines, including the recent development, we are also when we try to apply to create health assistant by users. We really are trying to invest in technology to advance our supply chain to create better customer experience.
Francis Yang: Thank you. Yes, certainly. It was very clear. And the artificial intelligence integration sounds very exciting. We look forward to hearing more.
Junling Liu: Thank you.
Operator: Thank you. And our next question today comes from Stephanie Will with Civic Investments . Please go ahead.
Unidentified Analyst: Good evening. This is Stephanie from Civic Investments and congratulations on the growing revenues. And I have two questions. The first one is what are the company’s plans for its OEM products in the future? And the second question is, what’s the current progress of the company’s capitalization? Thank you.
