Peter Cirino: Maybe I’ll take the first part of that question concerning the Antoro Pro digital cockpit. As we’ve launched the Lincoln Co 08, it’s a first opportunity for ECARX to put our full stack solution onto a vehicle. So important for the organization because it represents the ability to launch the product from what I’ll say, from silicon to cloud services. So it’s our Antora Prodigital copic computing platform on that vehicle. The software stack is our full software stack Cloud Peak software stack in that car as well as the Plameauto integration with the cell phone with the major cellphone that has also launched on that vehicle. We’ve seen very strong demand for that vehicle. And we anticipate that the demand in the market will continue to grow for that car.
So we’re excited about continuing to service that vehicle and launch additional features in future OTAs, both in the digital cockpit and in the Sky land autonomous system that’s launched on that vehicle. When we look at future launches, we have additional launches that are planned for next year with both the — with all 3 of our significant products. So the Antoro series, the two Pro series as well as our macro series, we’ll have a large number of launches as we move through 2024 on a number of different platforms. So I think that will contribute to a significant volume growth we see for the organization on a go-forward basis.
Phil Zhou: Yes. And I will take the second question regarding the R&D investment. So looking at our current trajectory for quarter 2 and quarter 3, R&D expense as a percentage of revenue will be stable at around 30%. So we will keep investing into the other ones, the minority development and product availability for the market. So while there’s a potential to adjust R&D investment percentage as the scaling of the revenue growth approach and we will keep it at a reasonable level, 30% at our general deadline. And we also expect a significant growth and the possibility of continuing to in fix the cost. So original guidance on breakeven was based on the company’s position at the starting of this year. And the goal is still there.
And that breakeven could be further pushed out to 25 different investment that we’re making in a brand-new product portfolio, as just mentioned, we have leading merge starting in Q2. And we also invest a bit into automotive solutions. So nonetheless, we are still working on a go and as long as we invest in additional product lines, the whole group’s profitability will be different but we will make sure the return of investment and keep pushing over breakeven in our entire store.
Operator: Our next question comes from the line of Derek Soderberg from Cantor Fitzgerald.
Derek Soderberg: I want to start with the pricing environment. I’m curious how sort of ASPs are moving. And then as it relates to inflation, do you guys have maybe inflation clauses embedded in your pricing contracts? And how quickly are those contracts negotiated every year?
Ziyu Shen: I’m going to address this question. So yes, the pricing competition is a reserve for the industry, at least during the first 3 quarters. And as I mentioned, the pricing on the car will be transferred to the entire industry. However, ECARXs, we — right now, we are offering the full stack solutions, right, including the computing platform, software operating system and ADAS solutions. And on top of that, we are also driving cost optimization. So including the package you just mentioned. So during — for the contracts we signed with our customers and vendors, we also defined the flexibility in terms of the product exchange, okay? And at the same time, right, we also provide our high value-added services to the customers. So with that, we are able to maintain and keep increasing the ASP. At the same time, without pricing away our cost optimization activities.
Derek Soderberg: Got it. And then as my follow-up, I’m curious if you could talk a bit about there’s a strike in the United States with the auto workers. I’m curious if there’s any sort of knockout effects that you’re seeing on your end? And then just on the macro environment, are you seeing any particular areas of strength or weakness that have kind of changed in the past quarter or two?
Peter Cirino: Derek, maybe I’ll capture that question. I mean, we’ve talked about a number of exciting launches for ECARX and I think that’s what’s driving our volume, both in the current quarter and as we look at our outlook into next year, the launches certainly with a number of electric vehicles are seeing very strong adoption in the market. So we mentioned the Volvo EX30, we have launches coming with the Polestor brand and with our other — within Go brand and also a lot of activities beyond our core customers like we’ve described earlier today with the launch of products with the PoughoSitron and Dongfeng brands that we see launching this quarter. So I think we have a very strong pipeline. When we look at the impact from — the U.S. strike doesn’t really affect our business at this point in time. The — but we certainly see very strong demand for our products, both as we go through here in Q4 and as we move into 2024.
Operator: Our next question comes from the [indiscernible] from Jefferies.
Unidentified Analyst: This is Jane [ph] from Jefferies. And congratulations on the strong financial performance. I have 2 questions for management. My first question is about the product pipeline. Can you share more colors about the new product, mass production timeline and the guidance of the delivery target of each product line. And I’m also wondering which customer or car model or platform do you think can be the strongest growth driver next year? And my second question is regarding the competition from Huawei, especially in terms of the smart copy solution, Huawei is expanding a cooperation with smart oncoming cars and we will launch more new models. And AgM7 and M9 has gained much interest and recognition from customers. How do you think of the competition from Huawei, things we are also developing the operating system with CGM. These are my questions.
