Good evening, everyone. Welcome to the Online Telephone Call of Xiaomi Q4 2024. For this session, it will be recorded. If you have any questions, you may hang up. If you have any questions and would like to raise a question during the Q&A session, please press star one on a telephone keypad to register your question. Should you wish to cancel, please press star followed by two. I now hand the conference over to the host today, Ms. Anita Chen, Head of Investor Relations and Corporate Finance. Please go ahead. Good evening, ladies and gentlemen. Welcome to the Investor Conference Call and Audio Webcast hosted by Xiaomi Corporation regarding the company's 2024 annual results. Before we start the call, we would like to remind you that this call may include forward-looking statements which are underlined by a number of risk uncertainties and may not be realized in the future for various reasons. Information about general market conditions comes from a variety of sources outside of Xiaomi. This presentation also contains audited non-IFRS financial measures that should be considered in addition to, but not as a substitute for the company's financials prepared in accordance with the IFRS. Joining us today, we have Mr. Lu, President of Xiaomi, Mr. Alan Lam, CFO. To start, Mr. Lu will share strategic and business updates of the company. After, Mr. Lam will review the company's financial performance of 2024. Following on, we will move on to the Q&A session. We now pass the floor to Mr. Lu. Thank you, everyone. Welcome you all to our session today. For 2024, this has been a milestone year for Xiaomi. Under the guidance of human car and home strategy, we have stepped onto the fast track of growth with our mobile phones, automobile, IoT, and other business advancing in parallel. We have initially completed the business loop of the development, and we have seen great visibility and controllability of our operations through management reforms. Tonight, I would like to share the three main aspects. Number one, to review and summarize the core achievements. Second, the changes in Xiaomi's capability building over the past five years. Number three, look ahead to our strategic development for operational for a period in the future. In 2024, Xiaomi Group returned to a high-speed growth with both annual revenue and net profit reaching new historical. The group total revenue reached CNY 365.9 billion, a year-on-year increase of 35%. Adjusted net profit reached CNY 27.2 billion, year-on-year increase of 41%. For Xiaomi, these highs have been able to open up Xiaomi's third growth curve just nine months after the release of Xiaomi SU7. For the first nine months, we have seen a total of 248,000 units. What surprised us is even that today, one year after the release of Xiaomi SU7, we still see the monthly new knocked orders volume continue to grow. The performance of mobile phone has significantly outperformed the market as a whole. In 2024, Xiaomi's mobile phone shipments increased by more than 15% year-on-year, with the fastest growth of the top five manufacturers. Shipment ranking has remained in the top three globally for 18 consecutive quarters. Global market share increased by one percentage point year-on-year to 13.8%. Our premiumization, we have seen major breakthroughs. The price range is now in CNY 4,000-6,000. IoT business and our AI business have seen great growth. For our tablets, it has increased by more than 70%. Wearable wristband products ranked second in the world with a market share of 15.2%. Major home appliance business increased by more than 55% year-on-year. IoT business also continued to play the role of a profit stabilizer. Annual growth profit margin increased significantly by 3.9 percentage points year-on-year to 20.3%. Behind these achievements, it is inseparable from our unremitting efforts in capability building and improvement over the past few years in terms of our awareness. First, there is a shift in the business philosophy. In 2022, we first proposed, emphasizing both scale and profit, and the business philosophy has gradually shifted from the previous scale first to the pursuit of long-term and sustainable high-quality growth. In 2023, we clarified the overall strategy of human car and home and decomposed the implantation parts of the overall strategy into six subcategories, including the high-end strategy, industrial capability leadership strategy, AI OS, and the new retail strategies. Under the guidance of this goal, we adhere to building the company through technology and continue to increase investment in underlying research and development. Our R&D investment in 2024 was CNY 24.1 billion, and the research and development investment in 2025 is expected to reach CNY 30 billion. R&D has built a solid product power barrier for us through the strict selection of millions of netizens and evaluations. We have seen that Xiaomi SU7 received widespread good reviews in terms of quality, safety, range, and intelligence. In addition, SU7 Ultra prototype set a global speed record for four-door cars on the Nuremberg in Germany. Over the past five years, we have further deeply realized our high-end development. In 2020, our market share in the price range of CNY 4,000-6,000 in mobile phone was 5.6%. In 2024, this figure has risen to 16.8%. That is tripling within five years. At the end of last month, we released two masterpieces of high-end explorations, Xiaomi 15 Ultra and Xiaomi SU7 Ultra. Both achieved outstanding performance beyond expectations. Xiaomi SU7 Ultra, with a starting price of CNY 529,900, exceeded 10,000 locked-in orders in less than three days. Going forward, our goal is to promote high-end development across all product categories. This means that we not only need to continue to break through in the scale in the price range of the CNY 6,000 for mobile phones, but also expand our high-end strategy from the fields of mobile phones and automobiles. Complimentary to the high-end strategy is our new retail strategy. By the end of 2024, we have established approximately 15,000 Xiaomi home stores and 200 automobile sales stores in the China mainland market. Our market share for mobile phone in China has increased from 5.2% in 2020 to 10.3% in 2024, achieving doubling of growth. In 2024, we successfully expanded the new retail model from three C fields to automobile business fields. This year, our target is to realize and add further 5,000 more stores in China and build 20,000 Xiaomi home stores. In the future, we will continue to further expand the capability foundation of our human car and home, and in addition, to build 500 overseas stores in the overseas market and further expanding to 10,000 Xiaomi home stores overseas. Finally, in terms of management reform over the past five years, we have systematically built multiple internal process management systems, and we have used the DSTE system to decode the strategic plan and align the internal goals of the company, introduced IPD process to achieve value creation and stable output of popular products, and used IPMS to achieve internal coordination and value realization to build a transparent collective decision-making mechanism and improve the operation and decision-making system by establishing systems such as the operation management committee. For the past five years, Xiaomi has always been committed to increasing research and development investments, promoting high-end strategy and new retail layout. For the past few years, we have been looking at a precisely concentrated manifestation of capability built over the past five years, and these accumulations will lay a solid foundation for the future. At this very important juncture, we are in a very important turning point. First of all, hardcore technology is the core proposition for the next decade. We'll continue to increase the intensity of technological innovation, build a long-term technological moat, become a global leader in a new generation of hardcore technology. AI technology in the various terminal products, AI technology has always penetrated into all our business. In the future, we will use AI to reconstruct the underlying HyperOS, aiming to complete the evolution of an AI OS within two to three years and comprehensively improve the user experience. Second, we are looking at high-end development across all product categories. At the same meantime, we also steadily promote the optimization and upgrading of the organization and management system, continuously exploring the incremental dividends for future management reforms. Finally, I would like to reiterate the success of Xiaomi Automobile and other businesses that have once again proven the strength and universality of the Xiaomi model and Xiaomi methodology that is continuously creating popular products that exceed user expectations through accurate user insights and high-intensity R&D investment. In 2025, we have already embarked on a new journey. We believe that with a steady advancement of various strategies, as well as continuous technological innovation and management reforms, Xiaomi will move towards a higher stage of development. The future of Xiaomi is full of infinite possibilities and imagination. I now give the floor to our CFO, Alan. Thank you, Mr. Lu. Dear investors, good evening. As Mr. Lu has shared with you all, in 2024, under the guidance of human car and home strategy, we stepped onto the fast track of growth. In 2024, our total revenue reached CNY 365.9 billion, a new historical high. Our revenue increased both year-on-year and quarter-on-quarter in each quarter of the year. In the fourth quarter, our revenue exceeded the CNY 100 billion mark for the first time, reaching CNY 109 billion, with a year-on-year growth of 48.8%, which was the fastest growth since the Q3 of 2024. Our comprehensive gross profit margin for the year was 20.9%, showing a stable performance. In 2024, the revenue of our mobile phone and AIoT segment was CNY 333.2 billion, a year-on-year increase of 22.9%. The gross profit margin was 21.2%, remaining the same as in 2023. Now, let's take a look at the detailed situation of the sub-business segment. Number one, on smartphone. For 2024, the revenue of the year was CNY 191.8 billion, accounting for 52.4% of the total revenue, with a year-on-year growth of 21.8%. The revenue in the fourth quarter was CNY 51.3 billion, a year-on-year increase of 16%. In 2024, our global smartphone shipments were 168.5 million units, a year-on-year increase of 15.7%. According to Canalys data, in 2024, our global smartphone shipments firmly ranked third, with a market share of 13.8%. Our annual smartphone market share ranked among the top three in 56 markets around the world. In 2024, despite the impact of component prices on mobile phones, our gross margin remained relatively healthy, with an annual gross profit margin of 12.6%. In the fourth quarter, the gross profit margin rebounded from 11.7% in the Q3 to 12%. In addition, our annual mobile phone ASP reached a new historical high of CNY 1,138. Our high-end strategy has achieved remarkable results, and the product strength has been continuously improved. According to third-party data, in 2024, in the Chinese market, the proportion of our high-end smartphones in the overall smartphone shipment reached 23.3%, a year-on-year increase of 3 percentage points. Among them, the market share of smartphone in the price range of CNY 4,000 to 5,000 reached 24.3%, a year-on-year increase of 0.2 percentage points, ranking first. IoT area for this year, we had excellent performance both in terms of revenue and gross profit margin. In 2024, the revenue of our IoT and consumer products continued to grow at a high speed, exceeding the CNY 100 billion mark for the first time throughout the year, increasing by 30% year-on-year to CNY 104.1 billion, benefiting from increasing the proportion of in-house R&D and enhancing product strength. Gross profit margin for the year reached 20.3%, a new historical high, a year-on-year increase of 3.9 percentage points. From the perspective of product categories, our car IoT categories continued to contribute profits whilst maintaining a strong growth trend. This year, the smart home appliance business performed outstandingly, with the shipment of smart home appliances increased by 47.4% year-on-year. The tablet product continued to grow at a high speed, ranking fifth globally this year, with shipments increasing by more than 73% year-on-year. Our wearable devices also maintained a high-speed growth and remained in a leading position in the industry. For instance, our wearable wristband devices ranked second globally and in China, and our shipment of TWS earphones ranked first in China. Number three, internet services. We continued to expand our user base. In December 2024, our global monthly active user number exceeded 700 million, a year-on-year increase of 9.5%. Among them, the monthly active user number in the Chinese mainland reached 173 million, a year-on-year increase of 11.1%. In the Q4 of 2024, the revenue of our internet services business exceeded CNY 9 billion for the first time in a single quarter, reaching CNY 9.3 billion. In 2024, the revenue of our internet services business was CNY 34.1 billion, a new historical high, a year-on-year increase of 13.3%. Gross profit margin also performed well. In 2024, the internet gross profit margin increased by 2.5 percentage points year-on-year to 76.6%. The advertising business continued to drive the growth of the internet business, with the revenue for the year being CNY 24.7 billion. In terms of overseas internet business, the revenue for the year increased by 30% year-on-year to CNY 11 billion, accounting for 32.2% of the overall internet services revenue. Now, moving on, on our smart EVs. 2024, the revenue for the whole year was CNY 32.8 billion, accounting for 9% of the total revenue. Among them, the sales revenue of the smart EV was CNY 32.1 billion, and the revenue from other related businesses was CNY 700 million, with a comprehensive gross profit margin of 18.5%. In 2024, Xiaomi SU7 series were delivered with a total of 136,854 new cars, with an average unit price of CNY 234,479. The smart EV and other innovative businesses incurred a loss of CNY 6.2 billion, narrowing by 7.1% year-on-year. In 2025, we will fully focus on increasing production capability and plan to launch the YU7 in the middle of the year, aiming to deliver 350,000 new cars throughout the year. Making large-scale investment in underlying core technologies and striving to become a leader in the next generation is our goal for the next decade. We continue, and we will be firmly investing in R&D. In 2024, our R&D expenditure reached CNY 24.1 billion, an increase of 25.9% compared with the previous year. While increasing investment in R&D, we continue to maintain our ability to control expense expenditure. In 2024, our overall operating expenses were CNY 55 billion. Excluding the new business investment expenses of CNY 13.2 billion, the operating expense of our core business was CNY 41.8 billion, with an expense ratio of 12.6%, a year-on-year decrease of 0.7 percentage points. In terms of net profit in 2024, the group's adjusted net profit was CNY 27.2 billion, a year-on-year increase of 41.3%, a new historical high. Benefiting from the higher-than-expected car gross profit margin level and high-level car deliveries, the adjusted net loss of smart EV and other innovative businesses for the year was CNY 6.2 billion. Therefore, the profit of our core business exceeded the CNY 30 billion mark for the first time, reaching CNY 33.5 billion, a year-on-year increase of 28.8%, a new historical high. We are also actively rewarding our shareholders. In 2024, our cumulative share repurchase amount reached HKD 3.71 billion. Finally, we are also actively fulfilling our corporate social responsibilities. In 2024, we were honored as a Chinese ESG model enterprise by CCTV. This is a recognition of Xiaomi's active fulfillment, social responsibilities, and will also encourage Xiaomi to continue to be an ESG benchmark in China's technology field. In the meantime, we continue to rank in the top 2%. We have won the EcoVadis sustainable development group level gold medal for the second consecutive year, being at the leading level in the global industry. In the future, Xiaomi will continue to, with a high sense of social responsibility and mission, provide users with more green, intelligent, and sustainable technology products and services so that the achievements of innovation and green technologies can benefit more groups and enable everyone around the world to enjoy a good life brought by technology. In 2025, we will continue to maintain a steady and progressive operation strategy. We look forward to better results in 2025. Thank you all, and this is what we would like to share with you for this time, and we can now move to the Q&A session. Thank you, Mr. Alan, for investors. Can we please go to the Q&A session. We now start the Q&A session. If you have any questions, please press star by one, and if you would like to cancel, please press star by two. The first question we have, Andy from Morgan Stanley, please welcome. Thank you, Mr. Lu and Mr. Alan. I would like to thank you for the great results the company has achieved, whether it is revenue or profit. We have seen a historical high. My first question is regarding the EV. We can see that for Xiaomi's EV business, since its launch, you have seen great success for the 15 Ultra, and this has again shaken up the luxury car segment of above CNY 500,000, and your new target is reaching 350,000 units for the new capacity that comes from the existing production lines by way of improving efficiency or through new production lines. For the new production lines, will this meet the demand of the Ultra line?. The second question is about your overseas expansion. We can see that Xiaomi for this year, especially for your AI business, there's a lot of action. We can also see that Mr. Lu has just come back from the overseas market. Can you please share with us, in terms of this area, what is your plan, what is your strategy, and how to make sure that there will be more resources allocated to overseas business? Number one, regarding the capacity, yes, indeed, at the moment, we have a few different areas. For instance, for the past five months, our delivery is about 20,000 units of cars continuously every month, and we have also recently held a supplier conference with over hundreds of them, and we have said to them, we hope that they can help us to ensure the supply of our products. This is also why we have been able to improve our 300,000 to 350,000. In the meantime, we are also not simply looking at SU7 Ultra and for all the other products. This is capacity, production capacity. For overseas, I myself, I have been overseas, and I go overseas quite a lot for my business trip. For AIoT, it is roughly about 1/3 for overseas and 2/3 for China. Actually, in terms of potential, the overseas market is two times that of the domestic market. Basically, that means that there is a potential space for further growth of four times in the overseas market. Of course, if we are setting the OIT well, and I think that apart from our existing methods, we have Xiaomi Home as well as the Xiaomi Network, and Xiaomi Home is growing very fast. Xiaomi Home stores at the moment, we have opened up shops in many different countries. We have seen very good results, and people are also very willing to go on to the Xiaomi website and to purchase our products. In addition, for this year, for Xiaomi Home, the reason why we are expanding, in the last year, we have opened in Southeast Asia with five stores. This year, we went to Poland, and Poland has our first European store, and we can see that this year we will continue to further put in more efforts in this area. In Q2 this year, I believe that you will see in a lot of countries that there will be the first Xiaomi Home stores popping up, not only just in Southeast Asia, but also in Europe, Japan, and Korea. I believe that the AIoT strategy is very important, and in addition, I also feel that there is a great potential in the overseas market. I would also like to supplement with some data for IoT. In 2024, we have seen 30% of growth, and if you look at this for overseas growth, it is slower than China, but we have made some progress. As we have heard, overseas has more opportunities, and for the overseas market, the growth is also picking up. This is what I would like to share. Timothy from Goldman Sachs, please. Thank you, Mr. Lu and Alan. I would like to congratulate you on the Q4 stellar performance. I have two questions. Number one is on AI. We can see that at the end of last year, the company has launched AI products and AIoT, and the users, etc. We have seen various adoptions, and in addition, we can also see that AI is going to play a major role going in the future. What are your thoughts on this? Number two, in terms of AI expenditure, R&D, and expenses, what's your target, and which area are you investing in?. The third question is that for the company, you are looking at expanding your factories in Wuhan in phase two, so I want to ask about this area in terms of the development of factory expansion. Okay, I will answer the question first, and then Alan will take up the CapEx issue. Right now, I think that we are still quite far away from AI adoption, and we need another two to three years to really become the true AIoT, and I think that a lot of the products on mobile phones, they are more about having AI features and AI functionalities, but the customer's stickiness is not that strong. In the meantime, we also see a lot of good surprises, for instance, including Xiaomi, as well as using our projector, Xiao AI, and we have seen a lot of adoption, and recently, for a lot of our products, they have been able to help us resolve a lot of those issues. I think that these are areas whereby we will see great results. For AI and Xiaomi, this is very important. We have three core technologies here, so I believe that AI is very important, and for this year, it is about CNY 30 billion investment, and AI will take up about a quarter of those. In terms of the actual cash spend, it is actually going to be higher than that figure. I think that the relevant expense items I will have Alan to explain. If you look at the financial report for 2024, the CapEx that has been included, the 2024 CapEx is already over CNY 10 billion, and 2023, the incremental portion of that is related to AI spending. For 2025, we expect our CapEx will be higher than 2024, and the main incremental is related to AI, and the specific figure, I am not really in a position to disclose. For now, for the relevant R&D, these are being put into our AI investment. Great, thank you. Next question, Tina from Citibank. Management team, can you hear me okay?. Yes, please, go ahead. Thank you, Mr. Lu and Alan. I want to ask, the national subsidies lately have driven the market a bit, and for Q4, the strong growth in the IoT sector as well as the mobile phones, some of that might be thanks to subsidies. In Q1, for mobile phones and IoT, will they both benefit from the national subsidies? In addition, apart from the demand for the company's product structure changes, what are the things that you can have in forecast with us and to share us more on those points?. For this year, looking at cost, I think that investors pay attention to this. For the company, how do you look at the control of the expenses?. Or perhaps there are other components and the prices looking at this year versus last year, would you say that it is stable? What is the situation? Thank you. Well, national subsidy first. Number one, for this national subsidy, it would vary depending on which category of products. For different categories for different companies, the impact would also vary. For mobile phones, and this has started from Q1 this year. Last year, national subsidy for mobile phones is very little, so Q4, I would say that has very little to do with the national strategies for last year. However, in terms of laptops and tablets, they do have a certain percentage impact with the national subsidy. If we look at the growth, overall speaking, for instance, for large home appliances, we can see that if you look at tablets, if you look at laptops, etc., a lot of these are actually not growing. I think that for national subsidies, it is the same for everyone. However, for us, we need to look at what is growing faster. For Xiaomi, it is much faster than the others. For national subsidies, it is boosting for the high-end products. If you look at that sector, perhaps some of the high-end products, the growth is slightly more than the others. Number three, for national subsidies, I have not really seen any of the devices will form a major boost to the growth alone because of the national subsidies. So far, for GDR, whether it's GDR- 4 or GDR- 5, and perhaps for GDR- 5 in the short term, we might see some impact. This is because of the industry's decline for the past few years. For 2025, we will be looking at the increase of the fees of certain components and how that will impact our business. I think that this is slightly different from 2024 and 2025. Therefore, overall speaking, I would say that in the short term, we'll see some price volatility, but for Q2 and Q3, there will be some decreasing. These are my answers to your questions. Thank you. Wen Hanjing from Citic, please. From CICC. Thank you. First of all, I would like to congratulate the company on your stellar performance for Q4. I have two small questions. Number one is for your ultimate bill business. We can see that the gross margin is over 20%. In addition, for ultimate bill and the innovation business, the loss-making is also narrowing. Thinking about this as well as our YU7 launch and looking into 2025, what's the ultimate bill gross margin, as well as when can we expect the ultimate bill business to become profitable?. My second question is on the internet. Internet business has achieved a new high, especially with advertisement. What are the reasons behind this?. For ultimate bill business, profit margin, and you can see that's 20%. In terms of trend, I would say that for 2025 and for the later on quarters, I would say that it will be higher or equal to that of Q1. At the moment, we are still in the heavy investment period, whether it is core technology or whether it is in our investment into the factories and intelligent driving, etc. For the ultimate bill business at the moment, so far, we do not have any very strict timeline schedule. In terms of IoT business and revenue, you can see that we have achieved a new high. Number one is our existing customers continue to grow. This is number one. Number two, on this basis, the structure of our users has also been optimized thanks to the high-end devices. Both of these are the good foundations for the development of our IoT business. You might say that, for instance, for our advertisement business, it is going strong, and especially for overseas, we have a very good business, and therefore, we have a very strong bargaining power with advertisement. Mr. Lu has also said that in the past one to two years, in terms of our gross margin, it is thanks to advertisement becoming higher and higher. This is something that's very healthy, I would say. You can see that advertisement revenue versus the others, the gross margin is higher, which would pull up our gross margin growth. Mr. Lu talked about the high-end, the penetration, and you will see that for our output, it is actually improving, and for overseas, output is also going up. These two numbers are very healthy. We can see that for our internet business, overall gross margin is increasing. Great, thank you. Our next question is from Citic, Mr. Sun Yingfeng. Thank you, and congratulations on your excellent results. Two questions. Number one is on retail network. In China, the actual expansion of your stores, what is the speed, as well as future forecast? In addition, in terms of your displayed cost, and what's the situation? Number two is on AI. Recently, we have heard a lot of AI agents, and in the internet sector, we have seen its adoption. However, in IoTs, I think that there is some potential that the market has not yet quite recognized it. For instance, in terms of our human car home ecosystem and how to utilize our IoT system and to utilize our internet advantage for sales and network. This year, we are very clear. We have a very clear point, which is that for our offline stores, we will achieve 20,000 for stores with 500 square meters above, and we will have 400 of these. In the meantime, we will continue to expand our delivery center as well as our 4S stores. Those are very definitive. With such expansion, the benefits to Xiaomi are very obvious. For instance, our area is bigger, and our image is more premium with Xiaomi's brand power, very strong polling factors, and it means that perhaps we would be able to get cheaper rent. Those are the benefits and values we can derive from this. However, this year, we are still very firm that if a property that is not very good, we're not going to open a store in that property. For AI agent, its adoption in internet and IoT, I think that for Xiaomi, for our products, can be used in multiple scenarios, multiple locations, multiple places. These have already built up a solid foundation for AI, and this is also why we will continue to work hard in AI for this year, as we have heard that we will have about CNY 30 billion, and the cash flow gap is even bigger. For AI, I think that we need to build the solid foundation. In addition, we also need to work on our technology, including a few of the large language models. Number four is for our products, how to combine that with the industry. For our supercell eye at the moment, the reputation among our users is very strong. Thank you. Next question, Huang Le Ping from Huatai. Please start your question. Thank you. I have two questions. Number one is for the large home appliance, and we can see that IoT has continued to enjoy 50% growth. For this part, I can see that with these market potential, and a lot of that will come from larger home appliance. What is your view on opportunities in this space versus mobile phones? Number two is that for the company's ASP continue to rise for your mobile phone business, what is the reason behind this? Can this be synergized with your ultimate bill business?. We have seen some data, for instance, the success of the ultimate bill business, and is this something that will affect Xiaomi's customer base?. In terms of large home appliance, our target is very clear. We started including this into our operation strategy in 2023. For last year, we have seen the delivery of technologies. For the end of this year, we will also be starting to work in this area. These are the aspects that we are looking at for large home appliance. What we want to see is the potential room for growth is very large. For last year, for the large home appliance, it is about 5%, and this year will continue to grow. For the AC business, it is the same. We want to rank number three for this year. We also want to become number one or number two in the next two to three years. We do see that in these areas, whether it is our products from the traditional AC technology, I think that we have already bridged the gap. In the meantime, our advantage in the intelligence and smart sector, we are way ahead of the others. 70% of our appliances can be all connected. Without the connections for IoTs, they would not be able to realize the effect that we are able to provide. At the moment, for instance, for human and machine interaction, these are all very important personalized products and services. This is one example in the ACs. We have also recently launched our centralized ACs, and central ACs, they are really the highlight of the highest performance of all ACs. With our launch of the central AC, our pre-sales speed is about five to six times of our target. This is something that's very delightful. We do believe that there's a lot of room for further growth in this area. Right now, we are moving overseas in Southeast Asia. We are doing very well. For ACs in this space, we have huge opportunities. I have not yet seen where the ceiling is. The sky is the limit. In terms of synergy between mobile phones and our ultimate bills, yes, of course. During CNY, I can give you an example. Traditionally speaking, traditional cars, they would only be able to sell 30%. This is the data we see. However, this time for Xiaomi, during the CNY year, our sales is actually even higher than the general normal times. Why is this? It's because a lot of our cars are placed in shopping malls, and shopping malls are the hottest destinations during CNY. People will go there to go and watch a movie and go shopping. Once they are in the mall, they will be looking at our product. You can see that during Chinese New Year's. This is what we have seen, the improvement. These are some areas whereby we have done very well. In the meantime, for Xiaomi, you can see that we have launched two Ultra products at the same time. For Xiaomi Ultra, they have been selling very well. This year, in the next five years, in the premium and ultra premium sector, we will do very well. Xiaomi Ultra, at the moment, we have seen growth of 80% year on year. I think that this is a classic example. You can see the synergy. It is not only about mobile phones and automobiles. It is omnipresent. Our ASP of traditional products is also rising very quickly. Please rest assured, this is only the beginning of our business in the synergies sector. In the next three to four years, this will be even greater. Let me supplement with a few data. IoT, you asked whether that's mainly coming from home appliance. For 2024 versus 2023, it has grown by CNY 20 billion. The growth really comes from many aspects, not only just from large home appliance, but also from tablets last year, very strong, as well as wearables. The growth I would like to emphasize is not only from large home appliance. It is one driver. However, in the other categories, we have also seen very fast growth. That's just one thing to supplement from m,y end. Great, thank you. Next question, Zoe from UBS, please. Thank you, Mr. Lu. And Mr. Alan, and congratulations on your great results. One question on vehicle. We can see that with Ultra's sales, at the moment, the delivery time is 13-16 weeks. Now with the waiting list, perhaps it's about 40 weeks with YU7's launch. The demand must be very high. Mid and long term, what's your plan for capacity production?, Another question is on internet. We have heard earlier, a lot of your growth comes from advertisement as well as the increase of output. We can also see that in Q4, it has reached a new high. Based on our understanding, Q4 is mainly overseas business and advertisement going forward. In terms of the terminals, business will be more diversified. Is it that, first of all, we can expect more from mobile phones? In addition, from gaming and the other business formats, is it that we can also see some contribution from the overseas business? Thank you. Those are my two questions. Yes, indeed. At the moment, the biggest bottleneck is about our delivery. At the moment, for our company as a whole, we are working hard in terms of ensuring the safety as well as ensuring the quality of our products. This is also a long-term goal of our business. We will also be continuously working to further expand our business. For instance, these are things that we are looking at. For internet, you can see that recently, it is over one-third. For our overseas number of users, it is also growing. Overseas business is operating normally. Of course, mainly still on advertisement. Some of those are for searches, and some of those are our performance gaps. We have not yet really moved the Chinese model overseas in terms of our shipment or our existing customers. There are more and more of those. Right now, it is about the growth of resources. It is not about to further expand at the moment. It is more about the resources accumulation. Next question, Sherry, please. Good evening, management team. Can you hear me? Yes, please. My first question is to ask Mr. Lu for this year. For mobile phone market, what is your view? We can see that the sales number lately, we have been able to get quite a lot from the market. What is the market overall capacity and your market share? In Western Europe, in the past, in market share, we can see some dip in the market. What are the strategies you have in those areas for Western Europe? For mobile phones for this year, we can see that overall, it is only about 1 to 3% of a growth. Last year, we have been able to grow about 1% in this general backdrop of environment. That is also our goal to continue to grow by 1%. I feel that we need to be looking at the scale for Xiaomi, and we should be able to achieve a sales of 200 million from 2020 to 2027. We should be able to cross that threshold for the other product categories and then to reach the threshold of 100 million, etc. Those are some of my views. For the China market, perhaps there are some differences. I think that they are still quite helpful. For Western Europe, we see some decline in the market, and it is mainly because of our adjustment. We believe that the Western Europe market, we are now intentionally actually controlling some of the sales of certain products. In the meantime, we have also further increased the sales of the mid and high range of the products. We have some products, for instance, with a price of CNY 999 as well as CNY 4,099 in this region. They are still selling very well. Recently, in Japan, we have also had some entry-level products for sales. In terms of market share and ASP in Western Europe, you will see it picking up in the future. Thank you. One last question from Oriental Securities. Good evening. I have two questions. Number one is about the ultimate bill market. We have seen a lot of your competitors going into lower-tier cities. What's your view on this and its impact on the industry? I believe that Xiaomi has done very well in this area. Apart from the continuous improvement of technology, what other thoughts do you have? Number two is on central air conditioner. You are doing very well. In addition, we can also see that for central AC versus our old channels directly selling to customers. This is to business, which might be slightly different. Of course, either it is to B or to C. We know that your ability to have the products taking up the market is very strong. I want to ask whether you have any thoughts on the to B business development in the future. Yes, to B. It is very important to us, which is why we have worked very hard in intelligent driving. You can also see that on a monthly basis. We will have some updates regarding intelligent driving and English. In addition, we can also see that some of our peers, they have gone into the lower-tier markets. We believe that this is a great thing for the industry and for the prevalence of intelligent driving to bring it to the lower-tier cities so that people can enjoy this, people can experience this. We also hope that going forward, Xiaomi's intelligent driving product can do very well. We can see that this is our development. Please be a bit patient, and you will see that we will perform even better. In terms of to B and central AC, at the moment, we believe that the market is big enough. This market used to be very untransparent. Once Xiaomi enters in, we provide the market with a good product, good quality. In the meantime, our service has become very transparent. I believe that you all have experienced this when you are renovating homes, and there is a lot of obscure things going on. I believe that for any sectors that Xiaomi enters in, we are able to change the market. Before Xiaomi entered into the market, people often would assume otherwise. However, we can see that through Xiaomi's innovation in terms of products and models, we are able to grow. For central ACs, I believe that there is huge room. There is great potential. We do believe in the space for further growth in this area. Great. This concludes today's call. Thank you very much for your time. We hope that you will continue to support Xiaomi in the future. Thank you very much. Thank you, everyone. Goodbye.