The first category is really the consensus across the company, and that includes culture, brand, consumer brand and strategy. And the second category is our business operations, which covers from R&D, sales and services, supply chain and manufacturing. And lastly, is back office, functional — functions, which includes HR and organization, IT and processes and finance and operations. And to become a company that can really handle RMB 100 billion of revenue, we really need to excel in all areas. There can’t be any one shortcoming, and that will be the core foundation for any company that wants to reach the scale of 1 million unit sales annually.
Operator: Your next question comes from Jing Chang with CICC.
Jing Chang: So my first question is about a short-term question, regarding the production ramp-up and profitability of MEGA. As our Beijing BEV platform will be put into production along with the launch of MEGA, how long do we expect to come to the steady capacity? And what is the early-stage profitability level of MEGA? And will it be a dragging problem on our gross profit margin in the first and second quarter next year? And my second question is about our new product pipeline next year, especially for the BEV models. We know that there are two platforms, wheel and shock, and the former one corresponds to maybe larger and more extensive models. So do you have any more information about their product position in order to launch to the market or the timing of the delivery?
Xiang Li: Speaking of challenge, MEGA will be our very first BEV vehicle and also the debut of our BEV platform also in a new factory in Beijing as well as new production line. So there’s definitely challenges but, at the same time, we think there are many opportunities for us to overcome the challenge. First of all, we have plenty of experience in rapid production ramp-up. The Li L8, L9 and L7, all these three vehicles have ramped up pretty rapidly and reached very high delivery numbers within a short period of time. And as we look back at this experience, we’ve accumulated a lot of great experience in rapid production ramp-up. At the same time, we’ve also worked with our suppliers to work through our NUDD parts, namely New, Unique, Different and Difficult.
We have created a very detailed quality control and production ramp-up plans. In terms of personnel, we will front-load our recruiting and training to prepare for the start in production. Overall, we are pretty confident that the ramp-up of MEGA will be relatively successful, and it will be able to reach volume immediately after it comes to the market. And after, it will be able to be delivered immediately after the product launch and reach volume immediately after its first delivery. MEGA will be officially launched in December. And at the beginning of production ramp-up, we’ll expect to be a slight impact on gross margin. But we believe that as production rate steadies, gross margin will very rapidly recover to a very healthy level. Mr. Jing Chang, to answer the question on product line, next year, we will be launching 4 new — completely new models, which creates a record for — since the company’s beginning.
In the first half, we’ll be launching another large SUV product cater towards younger families called the L6. And in the second half, we’ll have 3 BEV models. The rate and the method of launch will be very similar to the successful experience from our previous products.
Operator: As we are reaching the end of our conference call now, I’d like to turn the call back over to management for any additional or closing comments.
Kobe Wang: Thank you once again for joining us today. If you have any other questions, please feel free to contact Li Auto’s IR team. Thank you. Have a good one. Bye-bye.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
