Unidentified Analyst: I’m Yan and Fion. I’m from CITIC Securities. And here’s €“ I have two questions. And the first, I wonder about product positioning because last year, you can see our sales growth indeed faced some pressure, but looking at the situation in the past two months, it seems that the resumption of commuting after the epidemic has stimulated the demand of the industry. I would like to know how we will position the focus of our product line in the near future? This is my first question. And second question, I wonder how do we evaluate the impact of upstream change such as lithium-ion battery price reductions, and we could also see some sodium batteries on our product, and also our financial performance, it could be better if you could show your insights, respectively?
Yan Li: Yes. I think €“ so let me try to address those. Those are great questions. First, on the product positioning. I think our product offerings has always been basically from the premium-end to the mid-end of the market. And I think that has always been the case. Now, it just happened that really, for our €“ in 2022, the issue with the lithium battery price increase that actually made our entry-level product, which is series, which roughly priced at the market mid-end level or slightly below the mid-end level, that product and competitive and the gross margin point of view, impossible to make. So, that’s actually created pressure on the sales volume on the revenue as well. So heading this into this year, I think, one, we’re going to focus on bringing new product in the premium and mid-end market.
Second, we really starting €“ second half of last year, we started to introduce a graphite led-acid battery solutions to offset the lithium battery price increase, but we don’t have enough product on the acid €“ on the graphite led-acid scooter yet. So, we have more product coming out supporting the graphite acid product solutions that can offset the lithium-ion battery price hike that help us to regain the competitiveness in the mid-end market. So, I think that’s on the product positioning. The second, we did observe that recently, basically the upstream material for the lithium batteries has €“ the price has come down. And then we also observed that price coming down has also triggered down to the lithium battery cell, there’s a downward pressure on the price.
I think having the lithium price coming down will be a significant to our sales volume as well and the margin as well because we were €“ I think, really, we were in a position that majority of our sales were from lithium. So, when the lithium price increased significantly, we got impact the most. But when the lithium price coming down significantly, we will benefit the most. But having said that, I think, so far, our 2023, basically financial outlooks and both our company internal budget, we haven’t really taken into consideration of the lithium price coming down yet. And if it did come down, that means we will actually improve our gross margin, as well as that will help us in terms of pricing our product to regain more sales. Hopefully, I’ve addressed the questions.
Unidentified Analyst: Yes. Well, noted and understood. Hopefully €“ rather looking forward to our back to game. Thank you.
Yan Li: Thank you.
Operator: Thank you. We’ll now move on to our next question. Our next question comes from the line of Alice Ma from UBS. Please go ahead. Your line is open.
Alice Ma: Thanks for taking our questions. I have two questions actually. One is regarding the domestic market and the other one is regarding the overseas market. For the first one, my question is, what is your view towards the growth of premium or mid to premium electric to €“ market domestically this year? I think that for most of the market consensus, they believe that the overall electric two-wheeler sector will grow by around 20% in terms of volume this year in China. But in terms of the mid to premium markets, do you expect that it will, like achieve a higher-than-average growth, which means that do you think that the consumption power of the consumers actually recovered after the reopening these days? And will the company benefit from this trend?
