Sijie Lin: Thank you, Joel and Andy. Congrats for another solid quarter results under a challenging base. So I have one question on the KCOFFEE. We are very happy to see that we already have 100 independent or so-called side-by-side KCOFFEE stores in a short time. And could you [indiscernible] a bit more about the positioning and development strategy of KCOFFEE. So like regarding the pricing, the menu design, the store format, the store location, et cetera. What’s our similarities and differences compared with the current main coffee players? And how can we give food plate to our own advantages? What’s the plan for the future store expansion? Thank you.
Joey Wat: Good day. I think the best way to find out is, if you come to some of our best way to find out is if you come to some of our KCOFFEE side-by-side store, then you figure out all of these very quickly. So let me — I’ll mentioned again, for the KCOFFEE, custom Coffee number of cups increased 30% for the quarter one, which is a very significant number. So we are very grateful for our customer’s support. So right now, we have 100 KCOFFEE stores side by side. Let’s start with results, then we’ll go through the detail. The result is these are all profitable additions. Even at the price of RMB9.9 for a lot of coffee, we make our cost structure work. So as our shareholders don’t have to worry about the impact on the overall margins.
So the way it was is — despite we sell KCOFFEE in all the KFC stores, but we also see the need for a dedicated space for customers. And we’ll define a coffee store versus the fried chicken store. The Coffee store is having this very lonely coffee aroma. It’s a small and the lovely space. So we create that space and a very small incremental costs because you right now see more of these side-by-side KCOFFEEs scrolling lower tier city and top tier cities. Because we opened so many new stores every year. So we took advantage of the — that development, and we will have 2 stores front. One is KFC, next to it is KCOFFEE. And the trick here is we share the kitchen. So there’s no incremental investment in kitchen. And you know that within our investment, the biggest portion of the CapEx is actually the kitchen.
So that helps. And then the pricing is similar to what we saw in other KFC stores, the coffee is very affordable. The menu — it has something you need to. So if you come to our KCOFFEE shop, make sure you try our [indiscernible]. The gigantic [indiscernible]. We sell millions and hundreds of million [indiscernible] every year. But we also realized that this gigantic [indiscernible], is a brilliant sell. It’s a big portion of our key coffee sell right now. So we do have some very unique product with the KCOFFEE shop, and we’ll continue to do that. And again, as I mentioned in the prepared remarks, our growth strategy of side-by-side KCOFFEE shop for 2024 would be aggressive. And what is aggressive you’ll see by the end of the year? Thank you, Sijie.
Sijie Lin: Thank you, Joel.
Operator: Thank you. That does conclude today’s Q&A session. I will now hand the conference back to Florence Lip for any closing remarks. Florence Lip Thank you. Thank you, [indiscernible]. Thank you for joining the call today. For further questions, please reach out through the contact information in our earnings release and on our website. Thank you very much. Thank you.
