Right now, we already see some of these kind of manpower shortages impact our production, especially in our supplier side. Yes. So we are working closely with our supply chain partners, try to mitigate all these risks, and we even start to prepare some of the workforce by ourselves. Whenever there is a shortage, we’ll send the workforce to help our supply partners. Yes.
Operator: Our next question will come from Ming-Hsun Lee with Bank of America. Please go ahead.
Ming-Hsun Lee: My first question is regarding your decision to make silicon carbide by yourself. And compared to your peers, some choose to build the internal capacity for factory, some decide to design chips by themselves, but what is the decision — why is the decision is made for this capacity build?
Kevin Yanan Shen: Thank you, Ming. This is Kevin. Let me take this question. Actually, just to clarify, we are not in Suzhou manufacturing the silicon carbide chip set. Actually, we are making the power drive module with the chipset. So while we choose to design our own power module. It’s because the power module is closely integrated into our five-in-one electric motors and our three-in-one electric motors. So therefore, the thermal solution and the size of this module are very important for our competitiveness and energy efficiency. That’s why we choose to build this module bus design and build these modules by ourselves. Yes, just to clarify.
Ming-Hsun Lee: And my second question, the new energy vehicle telecom will change in Shanghai in 2023. So could you remind us, what is the current contribution from Shanghai area? And how do you see the impact after the policy change? Besides that, when you speed up your battery EV launch in order to make the potential overload after the priority change?
Kevin Yanan Shen: Thank you. So Shanghai accounts for 6% to 5% of our sales volume. Yes. So of course, the policy change, of course, will have some impact on our sales in Shanghai. But actually, as we should know most of Li Auto customers are not buying a new car. They are kind of upgrading their cars. So in theory, we already have the calculate, so therefore, we are actively working with Shanghai — with our Shanghai to build a new sales strategy for next year to mitigate the impact of this policy change. But again, overall, Shanghai is only like 6% of our sales total volume. And about the BEV, actually just now BEV already in the scopes that next year, we’re going to have a launch of our first BEV car, yes.
Operator: Our next question will come from Xu Yingbo with CITIC. Please go ahead.
Xu Yingbo: My first question is about Li ONE has come some cost about in RMB800 million cost for so what is the principle for this cost? And how can we expect for the future potential cost of produced ONE? And my second question is about metric organization, could you please talk about more about that? Thank you.
Johnny Tie Li: I will take your provision question. This is Johnny. And for this provision, it’s already set to the raw materials, which means the parts already in our inventory or the purchase commitment we made to our suppliers for those inventory and parts commitment, we don’t plan to make it into vehicles in the future. So, the provision was based on the lower of cost and net realizable value based on our estimate and negotiation with the vendors. So, it’s an estimate. So, when I finally realized in the next two quarters, there will be some minor adjustment to the final amount comparing with quarterly gross margin is not very significant.
Kevin Yanan Shen: Yes. Second question, I think, Li Xiang will take
