Xiang Li: If we look back to 2020, until now, our R&D spending mostly fall into three areas. The first area is product development, which you see similar exercises in traditional car OEMs. The second one is technological platforms, including our EREV platform, our high-voltage BEV platform, our Smart Space platform, TOPS driving platform. These are shared platforms that all of our vehicles use. The platformization allow us to maximize cost or cost efficiency, R&D efficiency and user experience and make sure that they’re consistent across all products of our company. The third one is new and fast-growing is our system development, which includes supercomputing, the supercomputing platform, cloud computing platform and our IT infrastructure.
These are very long-term but crucial investments for our company. And in terms of organization, the product and technological platforms are run by Mr. Ma Donghui and system development is run by our CTO Xie Yan. And in terms of spending level, we spent the most today in technical platforms followed by product and then thirdly, system infrastructure. And going forward, we expect to see more spending in system and infrastructure, which might eventually overtake technological infrastructure because we think in the longest term, the most crucial investment or a competitive advantage lies in our system and infrastructure capability.
Jing Chang: My second question is about product design and planning. In the family car market segment, how can you exclude with product depreciation in addition to different models such as SUV or MPV and also different number of seats, what can be looking forward to get a greater differentiation?
Xiang Li: Our philosophy is the same as before. We still believe that price and seat configuration is the best way to segment the market. And this has been partly tested by the success of L9 and L7, which is soon to start delivery. In that, these three cars actually have attracted three very different user groups. If you look at L9, it pretty much attracted premium car buyers at the same price point or even higher than the current price level of L9. And L8 pretty perfectly replaced Li ONE and kind of share a very similar customer base as Li ONE. And L7 has been attracting a lot of young family users aged between 25 and 35. So price — as you can see, pricing and seat arrangements have allowed us to very efficiently cover the market in different user groups and there has even been some surprises in the case of L7, where we’ve been able to tap into new age groups that we hadn’t — we weren’t expecting before.
Operator: As we are reaching the end of our conference call, I’d like to turn the call back over to the Company for closing remarks. Ms. Janet Zhang, please go ahead.
Janet Zhang: Thank you once again for joining us today. If you have further questions, please feel free to contact Li Alto’s Investor Relations team. Then that’s all for today. Thank you, and have a good weekend.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
