Unidentified Analyst: That’s very clear. Thank you. And if I may, can I add one more question? Can you also discuss your performance in different regions? For example, now we’re seeing I guess, the recovery trends in China, but not so much in Europe and North America. Can you talk about your performance in different regions, and give us more colors there? Thank you.
Leon Deng: Okay. No, I think, yes, in China you see gradually recovering trend, although relatively slow in Q1 2023. And I think this is going to improve as we go in the year, but China actually stands to a small part of our overall self-branded product portfolio. Our biggest market is actually in the European markets whereby we are, kind of impacted a little bit by the discretionary income cut because of the inflation pressures in Europe and also to some extent by the Ukraine and Russia war. We’re actually mitigating that. And then in February this year, we even opened a regional office in Warsaw on top of the other satellite offices, which we already had in Europe. And we see certain bright spots in Europe, especially in Eastern Europe areas, actually our market share has went up quite dramatically during the year in Poland especially.
And we see that in southern Europe market we’re also actually maintaining our share and improving our share. So, Europe has and will remain as a cornerstone for our regional performance for our company. And then there’s a bright spot in United States as mentioned by Wang just in his script before. We won one of the third party’s consumer electronics industry performance award for a fitness tracker category for the top e-commerce U.S. market share gain in 2022. So, actually, we gained the market share from nowhere to a double-digit number in the course of 2022. So, we think USA will continue to act as a growth engine for ourselves in 2023 and beyond. So, I think those are €“ and obviously, the SCL market is good emerging market, whereby we think we still have quite some opportunities, especially in Korean and Japanese markets to actually grow ourselves even further than what we currently have.
So, I think there are €“ yes, we’re living in inflationary and consumer discretionary cuts type of environment. However, we still see bright spots in different parts of the world, whereby we believe there’s still a huge potential for us to tap in 2023 and beyond.
Unidentified Analyst: Thank you.
Operator: The next question comes from . Please go ahead.
Unidentified Analyst: Hi management. Thank you for taking my questions. And congratulations for the fourth quarter and a very good result. I have two questions. First is about your gross margin. We have noticed many ICE prices have significance since last year, and how can we measure the impact on the company’s gross margin? Thank you.
Leon Deng: Yeah, Ian. Thank you. I think in, so far, at least in Q1, we haven’t seen too much of a price decrease. In other words, the benefits of IC price going down, which should in-turn translate into a better margin, per se, for ourselves, because: number 1, I think it takes a few quarters for the price to be reflected in our material cost because most of the purchase we make is a long lead time purchase, especially on ICs, which we’re locking the price already a few quarters before the current quarter. So, I think in so far we didn’t see too much of that benefit in our gross margin. But as you mentioned, we noticed that there’s a cost price going down for the ICs in the industry, and I think in the coming quarters, we probably would see that benefit flowing into our gross margin and that will in-turn also increase our gross margin performance even further than what we have mentioned just now.
