Operator: The next question comes from Wang Bin with Credit Suisse. Please go ahead.
Bin Wang: Actually got two questions. Number one is about a second order. For your guidance, you said that before L7, L8 version you got 25,000 units sales. But after it, you got 30,000 units, which means will be fighting from a — so can the overall L7 will be bigger than the total order flow from L8 and L9? That’s the first question about the order flow for L7. And second question about our margin. I actually try to quantify the margin impact in the number four quarter because we see a few factors number-wise that and this impact actually increasing quite back in the number fourth quarter compared to number three increase around 400,000 units maybe per ton to more 500,000 units. Is that going to be the number one reason? Number two is about the promotion for the Li L1, we saw that in the last quarter last year, each month, we sell around 1,000 units and Li L1.
So is that going to create an inventory second week on margin did not increase? And third one is about the component supply normally for comeback first certain amount say, 50,000. You actually have a higher cost. After 50,000, you have lower cost. So what’s the reason, I’m trying to understand what’s the margin trend in the first quarter next year, 2023? Thank you.
Tie Li: Tie Li here. I will take both your question. First, I think for the new L7 as we still need some time to ramp-up. For the Q1 guidance, we include several thousands of L7. Most of the delivery will be still be L9 and L8. And as we mentioned, April or May will be the whole month, we deliver our L-Series, including Air. So we have some — our order. But as you know, the Air version test drive hasn’t start. So a lot of the customers need to do test drive. So the mix just like the survey, you can see from the . And for the second question, I think all the factors you mentioned is a — was the factor that makes our 20% gross margin in the fourth quarter. And all this, as a whole, got the impact about 2% of the margin. So I think I don’t want to break it into too much detail. And for this year, considering the market conditions, we still want to keep our guidance to be above 20%. Thank you.
Bin Wang: Thank you so much.
Operator: The next question comes from Ming Hsun Lee with Bank of America. Please go ahead.
MingHsun Lee: So my first question is regarding the license plate policy change in Shanghai. So what is the sales contribution from Shanghai City in 2022 and 2023? And among that, how many percentage of the consumers this year, they use their current license plate to buy our products? So my second question is regarding your product pipeline. So first question, will you launch the BEV this year for the NPV and also for your new product pipeline? Is L6 be launched in next year? And also for the — besides L6 next year, for the BEV product, will you start to launch more other products, for example, such like SUV or ?
Xiang Li: In terms of orders, in Shanghai, the general order flow was not very good. And then that was understandable because most of the demand was released in November and December last year. But we have just seen a very significant recovery since February. And over the long-term, we look at this issue from a market share standpoint. And we believe the steady-state market share in Shanghai will be comparable to that in Beijing because going forward, immediately, these markets, our EV purchase will be incentivized by free license plates. So we think Shanghai will eventually move towards a market share similar to that in Beijing. First of all, in terms of flagship EV product, the timing of the product release is highly tied to the cycle of technology innovations.
