Unidentified Analyst: I have two questions as well. First is as EHang is more focusing on China market and you talked about an increasing customer demand in China, could you share more color over the total revenue EHang216 pipeline orders, can you deliver these orders without specify obtain? And my second question is our company has secured a significant number of free order in Asia, I mean, excluding China. Do these preorders also have type certification in respective countries or your progress of type certification in China help these foreign type patients? Or is it like a whole new process all over again?
Richard Liu: This is Richard. Let me take the questions. First of all, as discussed earlier, we currently have an order pipeline of 100-plus units per year in China. And this order pipeline has been going with increasing inquiries, discussions from more potential customers in China, especially from the . And the related total content value would amount to around RMB 200 million or more. And if you set part of the VAT in China, we can get the corresponding venue estimate roughly around 177 something R&D. So as put in our earnings release, most of these partner orders in China are conditional upon the TC and are practical to be in 1 to 3 years after that. However, were indeed some customers in China, we are more sophisticated and understand that the TC is to be obtention and thus, do not require that before the others.
In respect of your second question, those preorders in other Asian countries are usually require a local TC. Well, we have been working with our local partners in communicating with local aviation it. What we have been experiencing is that onto Asian countries are open money to this type of innovative area vehicles. and is actually interested in the uses in program, which is an important industry in their respective economy. So after we obtained the selection in China, you look to vibe for us to certify for the local sections with the local aviation as and we do not have to go from the given example in both Southeast Asian countries like Indonesia, we increased price for the local do a called EPC process, namely validation of type certificate with the local aviation authorities, and it is expected to be a simplified process.
So we will help sorting the time and be more efficient for us to establish and further expand our market profits in those countries.
Operator: The questions come from from Morgan Stanley.
Unidentified Analyst: I only have one question on margin. EHang currently has quite good gross margin at around 60%. And how should we think about the gross margin this year and over time, especially after we kick off our commercial operations?
Richard Liu: Thank you. I will take the questions. The current percent or GP margin is actually a comprehensive margin covering our vehicle hardware and software products and services. At the core of the company, the technology advantage actually license our software. But to some extent, Yihaodian, a software-based techno company that integrates in or vehicle products and separate Gitlin markets. In addition of the keys for H215 assess expected to be obtained on . After that, we were probably the only company in the market, especially in China . So as you can tell, we work have some more pricing power on the market. Further, our sales are expected to scale up of the GC is also anticipated we would also have more negotiation power suppliers to control our opportunity costs. And therefore, it is affected, we will continue to maintain this 80% GC margin level.
Operator: Due to time constraint, we will end the Q&A session here. And I would like now to turn the call back to Ms. Anne for closing remarks.
Anne Ji: Thank you, operator, and thank you all for listening in on today’s call. If you have further questions, please contact our IR team by e-mail or on investor through the calendar information provided on our website. We appreciate your interest, and we look forward to our next earnings call. Thank you.
Operator: Thank you all again. This concludes the conference call today. You may now disconnect your lines. Thank you.
