Good evening. I'm your host, auto analyst of CICC. Welcome to the 2023 earnings call for Leapmotor. Representing the management, we have the founder, Chairman, CEO, Mr. Zhu Jiangming, and Co-President, Mr. Wu Qiang from Leapmotor. Let me read out the disclaimer. The contents of this 2023 annual result conference call for Leapmotor may contain forward-looking statements, including but not limited to statements regarding the company's future financial conditions, strategy, objectives, targets, and future market conditions in which the company participates or will participate. These forward-looking statements are based on the company's current and future business development strategies and the company's assumptions about the future business environment, which invariably involve some known or unknown risks and uncertainties. These factors, which the company cannot predict nor control, may cause the actual performance of the company and the performance of the industry in which the company operates to differ from the future performance expressed or implied in the forward-looking statements. Therefore, we caution that no undue reliance should be placed on the forward-looking statements discussed in this earnings call. These statements only reflect the opinions of the company's management as of the day of this call, and the company undertakes no obligation to update or revise any statement made in this call in light of new information, future events, or other circumstances. The forward-looking events discussed in this call may not occur due to various circumstances and assumptions. The above disclaimer apply to all forward-looking statements mentioned in this call. In addition, shareholders and potential investors are reminded that nothing contained in this earnings call constitutes any investment advice, nor does it constitute the basis or ground for any contract, commitment, or investment decision. Shareholders and potential investors are advised to act with discretion and caution when trading the company's shares. Now, may I invite Mr. Zhu to give a review on the operating highlights for 2023. Okay. Good evening, dear investors. Thank you for joining this earnings call. 2023 is a rewarding year for Leapmotor. In changing market environment, we're showing strong and potential sales growing, and delivery continue to reach new heights. We have over 144,000 new deliveries, and we have been among top three in the auto pure plays. We also have further consolidate Leapmotor's position in the top NEV players. In the past year, our product structure has been optimized. The main models are moving from the T03 into a higher price, C11. In terms of product pricing, being competitive in 2023, we have achieved the full year GP margin positivity ahead of time. Business continue to see positive cash flow contribution. Our brand awareness have also been massively improved. After 8 years of full-suite in-house R&D, Leapmotor in electronic technology, we have our own moat, and we continue to reduce cost, improve efficiency, bring high value, best-in-class products. In 2023, we make a range of new product launch, redefining CNY 150,000-CNY 200,000 benchmark in NEV. By way of making BEV plus EREV configuration, we meet different demands, and we are driving the C-class 300 km range. We are building a benchmark of value in the CNY 200,000 mark. C11 have been selling over 10,000 a month, being a benchmark in this category. In 2023, we launched the Four-Leaf Clover, which is the new electronic architecture. We have achieved the first-in-class four domain in one architecture, so that we have truly built a foundation for software-defined automobile. When we are moving into LEAP 3.0 era, because of the technology and product competitiveness in 2023, we are working with Stellantis, being a strategic collaborator. We are going to use the asset line model to drive the globalization efforts around the full suite in-house R&D and international branding, leveraging Stellantis global channels and after-sales network. We will quickly unlock international markets. In global markets, we are building international brand for Leapmotor. In 2024, in different continents, we are going to be bringing the Leapmotor brand. In Europe, we will be launching in some of the local markets in Europe, based on the in-house manufacturing of battery, electric drive, electric control, and after verification for over 300,000 motors on the vehicle, we are going to move into the supply chain of other markets to expand more growth drivers. I believe in 2024, Leapmotor will continue to play a role in greater domains and arenas and contribute to the shareholders. Thank you. Thank you, Mr. Zhu, for the kind sharing. May I invite Mr. Wu to review the financial performance for 2023. Thank you. 2023, in the history of Leapmotor, this is a landmark year for Leapmotor. In all the financial metrics, we are making improvements across the board. As I mentioned, we delivered 144,000 vehicles, ranking top three in all the new startups. Operating profit, revenue CNY 16.7 billion, up by 35%. The revenue growth was higher than most of the NEV players. In 2023, for the first time, we have positive gross margin of 9.5%. Compared with the peers, you have to also exclude the rebate for distributor. The GP margin will be 11.6% if we take away the rebate. All of our operation and GP margin, with exception to some peers, we are outperforming other new energy vehicles vendors. Also we have achieved positive cash flow with CNY 1.08 billion. Excluding CapEx, the free cash flow was negative, CNY 260 million. That is very close to breaking even. Our free cash flow positivity is just around the corner. Also last year, Stellantis made a vote of trust with a CNY 7.8 billion investment. We have our CNY 20 billion capital resources in hand to support our future development. At this point, I would like to make a point. The funding is not about the dollar amount, it is about effectiveness. In Leapmotor, we are highly effective in using the funding. We are most effective. If you look at expenses like sales, R&D, management expenses, the three expenses at Leapmotor, we roughly were at CNY 4.5 billion and CNY 5 billion a year. Compared with CNY 10 billion, CNY 20 billion, CNY 30 billion expenses from our peers. If you look at R&D in the past five years, R&D was about CNY 4.7 billion, compared with CNY 20 billion, CNY 30 billion from our peers. In terms of the outputs, Leapmotor continued to work on full suite in-house R&D, from core vehicle to electric drive, battery, control. Everything was in-house, full suite, and developed and manufactured in-house. We have eight models on the platform. We deliver over 330,000 vehicles. We are ranking number three in the top NEV market. We are in an era of rapid iteration. We're going to be very competitive, like what Mr. Zhu has said. We're going to be acquiring the tier 1 supplier to supply to other OEMs. Compared with the funding investment, we are clearly highly efficient in using our capital and investment. In terms of the positivity of gross margin, actually every year, based on the full suite in-house R&D technology advantage and cost advantage, particularly as we understand all the underlying technology of the electric vehicle. In terms of optimization, we are fully in control. We're able to efficiently reduce costs by technology. Cost down by technology is critical for Leapmotor, which will help to drive the positivity of the gross margin. Amid fierce competition, our gross margin has been very stable and getting better year after year, and with a high level of financial predictability. The reason for better gross margin is really because of higher sales volume, cost down, technology cost improvements. These combine to contribute to better and positive gross margin. In terms of asset balance sheet, at the end of 2023, we have 56% of gear ratio. We're leading among all the peers. We're better than other company in terms of the asset liability ratio. In terms of R&D, sales, expenses, and as a percentage of sales dollar, we have very low expenses rate at 11% or 16%. However, compare the peers, we are second best. We talk about Leapmotor. We are driving down costs by technology. That starting from September 2022, by end of 2023, we have been through three cycles of cost down. We are moving to the fourth cycle of costing down. We have excellent results. To give you example, last year, we drive down cost by technology to optimize our solution, which give us about 40% of cost down in the whole cost down percentage. We have significant advantage of costing down by technology. If you look at the models, the C11, T03, T01, we're up to the three cycle of cost down without reducing function, reducing feature. Basically, the cost has been cut by one-third for each of the models. That's what I'm going to show you, our financial highlights to share with investors. We're happy to take your questions regarding the earnings for 2023. Thank you. Okay. Thank you. Thank you for the sharing. We're now opening the floor for questions. Conference assistant. Good evening. If you have a question on the phone side, please press star and one. On network, you can click on the button you click in the text box to enter your question by text, or click the raise hand button. If you are dialing on the phone, you can press star and one. For those user on the network, you can enter your question by text or click the button. Hello, I'm from CICC. Thank you for the sharing. Congratulations to the excellent result in 2023. I have two questions for you. Firstly, it has to do with a question, like the idea on the second tier market. What do you think of the CNY 100,000-CNY 200,000 vehicle? What is the market landscape for the CNY 100,000-CNY 200,000 vehicles? Well, CNY 100,000-CNY 200,000 in the ICE or NEV, that is the most intensive competitive price brand. Leapmotor, as Mr. Wu said, we're using our technology innovation, full suite in-house R&D, and core, where we have core 60%-70% of the cores are manufacture in-house. 67% of the BOM in-house. At the same price, we are able to offer more feature to the users. We have better value to price experience to the users. That has been our strategy to address this market. We hope we use our generic efforts differentiation so we can really participate in the competition effectively. As I mentioned, from September 2022, we have started rounds of cost-down cycle. For every six months, there was a cycle. In every cycle, we hope to drive down costs, for CNY 10,000 or even CNY 15,000 per vehicle. Of course, we are talking about excluding the battery price. Battery is a cyclical material. Of course, the price of battery will fluctuate along with the raw material, but I'm talking about cost-down on top of battery savings. At Leapmotor strategy, we want to use our technology capabilities, in-house full suite R&D, core parts manufacturing to compete in that way. Obviously, in the marketing strategy, we have three components. Business model, we have the domestic market in China. We are fearless because we are in full competition in the market, leveraging our product strategy and product advantage. We'll continue to consolidate and optimize our position in the market and capability on the sales side, on the distribution side, and service side. We can consolidate our position in China and also in overseas. We have more opportunity to launch model overseas, because in overseas markets, there are very different demands from China. They want smaller models. They want more control, more maneuverability. They don't really care so much about intelligence. The demand is lagging behind in China in terms of intelligence features. In overseas, it's going to be models that are suitable for overseas markets, leveraging the 10,000 distribution network of Stellantis service network and component distribution system, so we can quickly unlock the overseas market. Thirdly, is also on the Leapmotor's role being a tier 1 supplier, so we can serve as a tier 1 supplier parts to OEMs, like electric drive, electric control, electronic architecture, because our partners are Stellantis. In itself, it's a group that sells 7 million cars every year. Of course, it could also be other OEMs where we can potentially become a supplier of core components. These are the three parts where we want to build the Leapmotor business model. Okay. Thank you. Thank you, Mr. Zhu. I have a second question regarding the funding arrangement. You talked about you have CNY 20 billion cash, and also you are breaking even on operating cash flow. What about the arrangement or plans of CapEx, R&D, shareholder return? How do you think of making use of this funding? Well, when it comes to funds, as you mentioned, in 2023, operating cash flow is over CNY 1 billion positive cash flow. In 2023, if the sales reach our targets, then by Q4 this year, we are going to achieve 30,000 per month. 30,000 vehicles, we are selling more than 10,000 vehicles per month compared to 2023. The payment terms from the component vendors. Because of higher sales, we can generate CNY 5 billion-CNY 6 billion cash because of the timing gap. We're going to get CNY 5 billion positive cash flow based on the payment term to our suppliers. Based on our planning, if the loss is within CNY 4 billion, then in 2024, we can continue to generate CNY 1 billion cash flow in positive terms. In terms of the funding, Leapmotor has a very strong assurance. Now, for the company, 2024, GP margin for the full year is going to be turning positive. We're going to have some positive gross margin. We're going to have some gross margin. The margin will be invested. We have higher sales, there will be more marketing expenses, and the profit margin will go to smart driving, new model development, where we're going to invest more compared with 2023. In China. Also we're working with overseas market as well. We're going to have over 10 models under development at the same time. The other investment is we're going to invest in 200 people, bringing the headcount to 500 in smart driving. R&D, smart driving, there's going to be more headcount recruitment, and also algorithm rental fees, which is another capital expenditure. All in all, we are pretty confident that at least we can generate positive cash flow within this year. Okay. Thank you. I will get back to the queue. Next question, phone number 6426. Thank you. Thank you, Mr. Zhu, for taking my question. I'm Kankai from CITIC Securities. Thank you so much for strong earnings. A couple questions. First of all, we talk about going global, I was wondering, how have you prepared for this? In terms of the model and do you see the overseas factory, are you able to build factories overseas within the short period of time? That would be my first question. Okay. First of all, for going global, in Q2, we are going to have T03, C10, where we have the EU certification and all the distributor recruitment, and the network build-up will be following the EU certification. Sales revenue will be happening in Q3 and Q4. Basically, Leapmotor internationalization is different from other peers in China, where they have trading or chief distributor. We operate differently. In overseas operation, it will be like adopting a distributor model, a dealer model. We are going to be offering the branding, we're going to be deeply involved. In terms of the models, as I mentioned, the model is different in overseas. In Europe, C10 is going to be the largest already. C10 is a Class B vehicle in China, but they're going to be looking at Class A, Class A0. What they want is much smaller than the Chinese model. At the same time, we are developing models that are more suitable for overseas markets. Next year, we're going to have A12, A03, two models will be launched. We hope, in two years or three years, then all the overseas models, we're going to be having a full lineup for the models. It will probably take two to three years for the full lineup that is going to be in place for overseas markets. C10 is a flagship model for overseas. We have to start with the market. Certainly, it will carry the branding feature. It could be the highest model. C10 will definitely going to be a flagship model for overseas. T03 is certainly a volume contributor. For overseas factory, at the moment, we have not yet received the certification officially. We are not able to disclose information officially yet. A lot of things are still in the pipeline and ongoing, and we are not in the position to make disclosure now. It's going to be all about optimizing the cost to do this in overseas. Because we want to build a factory there, we have to have enough sales to amortize the cost, and also building factory overseas It takes a pretty long cycle, a lot of CapEx, so we want to work with partners so that we can accelerate and improve efficiency faster and better. At the moment, I think we're going to evaluate multiple ways, identifying the best way. Essentially, it's all about we can drive the best cost structure. We're going to adopt a model that is the most cost-effective in driving our international business. Understood. Thank you. Wish you a fruitful result. I have another question. In terms of the Huawei collaboration or HarmonyOS collaboration, what's the consideration of the collaboration with Huawei or HarmonyOS? It's going to be the application for consumers on the convenience side and/or the upgrade of the functions. We have signed strategic agreement with Huawei. It's actually on the app side. On the app side in the future, not on the automobile, but on the app side. HarmonyOS by Huawei could be seeing some volume in cell phones in the future. Ahead of time, we work with Huawei, in the future, it's going to be HarmonyOS-based cell phone, where we're going to have a Leapmotor app. We are developing app for Leapmotor to be deployed on HarmonyOS cell phones in the future. That was the collaboration. Thank you. Thank you very much. 0877, you have the call. Good evening. I'm Shendan. I have two questions. The first question is, can you talk about the full-year sales? In Tier 1 city and lower tier city and overseas market, what is the rough volume estimates? This is on volume. The second question is going to be your GP margin outlook this year. In Q4, GP margin, despite the difficulty, you remain excellent in margin in last Q4. What is the trend outlook for GP margin 2024? Because of the price cut and the price war also, what's your outlook? For 2024, we are optimistic. We still hope to get to 250,000 to 300,000 sales target. It's mainly for Chinese market. For overseas market, that will not until end of Q3 before we start to deliver. That was not accounted for into that target I just mentioned. For the Chinese market, based on the current sales mix, of course, NEV is mainly for those people who want to try out new things, mostly from Tier 1 cities. Leapmotor focus on CNY 150,000 as the mean ASP. Therefore, we have to do more lower tier markets. Like EREV is suitable for Northern China or lower tier cities. Particularly, it's suitable for cities where they still have some concern of using BEV. They prefer EREV. EREV help to dispel their concern, it's suitable for lower tier cities. We have to fight for Tier 1 markets to replace ICE. At the same time, as a tier 1 city, CNY 150,000, like in Beijing, we have to focus on the suburban markets. They are in Beijing, but they are more suburban, a bit further away from downtown area. It is more suitable for them to use our products. Therefore, overall speaking, for 2024, we are pretty upbeat. When it comes to GP margin, in Q4, our GP margin was close to 5%-7%. Five to 7% last Q4. 6.7%. In 2023 Q4, 6.7%. 85% of the business was distributor model. If it is switching to fully direct sale, it is going to be 12%-13% of GP margin. Now, in 2024, indeed, we expect more competition. We have to provide more giveaway to customer. We have completed a three round of cost down efforts. We are confident that because of technology cost down, we are able to provide absolute value for money for customer, but at the same time, we are maintaining a 5%-10% GP margin for the full year 2024. Okay. Thank you. Next, 8173. Hello. I am China Securities, Zhao Hanzi. Congratulations to the results. Thanks for having me on. I have a couple of questions. You talk about three business models going forward. What is new is the tier 1 supplier. Being a tier 1 supplier, can you talk about how far it will happen? What kind of GP margin you expect from being a tier 1? Okay. We have just talked about, it took us eight years with 300,000 vehicles of testing. Our core component has been very well tested and validated for the suitability, marketability, and economical performance. We have good results. For example, in 2023, the battery department have been selling a lot of packs. Like the utility vehicles, some of the OEMs, they have been working with us, where we have over CNY 100 million revenue from the sales of battery. That was a start. Electric drive, we have two SOPs. In automobile, you start from SOP, it takes about a year and a half and two-year cycle from delivery. In 2024, we are going to receive more SOP, and revenue will not come in until 2025 and 2026. However, when it comes to the component and parts, we have high hopes. Of course, we need to have our own capabilities, like electric drive. We need to have the yield, we have the NVH, we have to have the efficiency, we have to have the cost. Everything has to be right. Everything has to be comparable and competitive against other tier 1 before you are able to get customers. You probably know, there are some other competitors in those sectors. It will be even more difficult for us to become a tier 1. We do have our own sales. We have varying OEMs. Different OEM have different needs and different wants. They have different interests of a collaboration. We talk about Stellantis. They also have considerable size. Stellantis potentially could be a customer for us. We still have a lot of opportunity. Now, you asked about GP margin. For any product, whether it is a vehicle or parts, we always provide a best-in-class price compared with other competitors, because the product is about the form, the delivery, the quality. Particularly for B2B, you have to have your core competitiveness to gain the trust of the customers. For Leapmotor, for every component, every part in the coming years will be a listed company in its own right. Like we have 1 million vehicle capacity of LAM. 800,000 electric drive. We have the capacity for 800,000 electric drive. We have capacity for 600,000 vehicles worth of packs, from cell to pack, design to manufacturing. We have capacity for 600,000 vehicles. For the future, in that regard, Leapmotor has a lot to expect for good performance. Thank you. Just a follow-up question. You talk about being a tier one for OEMs. The customer might have some concern of being a competitor. To be an OEM and tier one at the same time, what are your advantage being a tier one and OEM at the same time? And being a parts supplier, do you have any separate CapEx plan? The advantage is because we know customer demand well, being an OEM ourselves, and our product has been validated by our own fleet. Therefore, I think that is a good advantage. Particularly, ultimately, whether they are competitors or customers, whether they will source from us, it all ultimately come down to the competitive advantage. Like earlier, like Toyota, they have a few supplier. Like they have the charger. They can actually dictate what customer they want. They will pick and choose what customer to supply to. It is actually dependent on whether you have quality, whether you have delivery, whether you have satisfactory performance that exceed expectation. That is the key. That's critical. For the future, I think, as long as we carry on, that every core component will be a highly promising sector in itself. By way of innovation, we have gained a lot of advantage. For example, the Four-Leaf Clover, the electric electronic architecture. I would say in April, all the products, 410 was the first model. In March, we're starting to deliver based on the Four-Leaf Clover integrated architecture. In April, just next month, C11, C01, both models will be built on the new architecture. That kind of speed is really rare. Normally, if you look at other OEM, that kind of speed, very rare. That's really because of our in-house R&D, full suite R&D. In the future, it's just going to be like cellphone. All the architecture and chips will be replaced every two years. All models have to catch up with the speed, otherwise you cannot sell your product. Just like cellphone. Cellphone, you get a chip every year. For automobile, a new chip every two years. If you're not able to follow, you're going to be lagging behind. Thank you. Thank you so much. Next, 1909, you have the floor. Hello. Thank you for having me on. I have two questions. First of all, about your channels. I've seen end of last year, you have 560 stores. In terms of store opening, any plan for this year? Channel management, what are the plan for channel management? Next question is, a bit of update on C10 since launch in March. What's the performance of C10 since launch? For this year and next year, what about the new lined-up planning? Firstly, in terms of channel, Leapmotor in 2023, we added a lot of channels. Not much about new channels, it's more about optimization of channels. We are replacing some of the smaller dealers with better distributors, with bigger size, better capabilities. That was the process of optimization last year. We have also driving one plus N model. We hope we go to a certain region. For example, in one city, we want to build one regional center. That was the one. That was a standardized 4S store. Delivery service, a complete center. That was the one. The neighborhood, the showrooms, small screens. These are the one plus N model. This model will help us to get closer to the users. We have more urban showroom, supermarket showrooms. The one, the central center, will give user confidence. They know they're going to get served, they're going to get maintenance catered to. Some of the investors have been asking that we want investor to have a geography management. If we have module investors, they're going to be building their one plus N model by geography. Investor will going to have their own region, so they don't go with others in terms of price competition. That was the 2023 channel management, which was mainly for optimization. Now, in 2024, we want to build more ones. The one, the regional center source. At the end of the year, we want to build more than 200 central stores end of 2024. In 2024, it's still going to be optimization. It will grow from 560 to over 300 stores. We won't be building too much supermarket or shopping mall stores. It's going to be replacing their poor performer to better performers. That will be our Now, in the automobiles, we're going to build from 100 to 200 regional central store. That will be the ones. The C10 has been launched, we have very good results, in the coming days. In March, we're going to be delivering more than 4,000 vehicles. It's a process of ramping up the capacity. C10 has been in line with expectation. In Beijing Auto Show, we're going to be launching the C16. C16 was really being looked forward by many old users, which is six-seater. Many people have been looking forward to this. Many Leapmotor users, they are looking forward to C16. We hope C16 will be delivered starting from June. The lineup planning, in 2024, because we launched C10 and C16 in June, later on will be five-seater Class A SUV to be launched by the end of 2024. Three models this year. In 2025, the lineup will be at least four to five new models in 2025. More models in 2025. Okay. Thank you. No further question. Next, 6168. Hello. I'm Zhihua, Investments Wubo. My first question is, in terms of intelligent smart driving, are you going to most focus on in-house R&D, or are you going to work with collaborators for smart driving? We see a lot of smart driving companies out there who are having strong momentum. That would be my first question. The second question is, European models versus Chinese models, they are different. To meet European market demand, you want to address the domestic market, you're going to have many models. What about production capacity? Because every model will take time to ramp up. You are meeting the demand, production, and delivery. Any plan for factory? Okay. Let me take your first question, smart driving. In terms of algorithm, Leapmotor has always continued to do in-house R&D. Our team, after three years effort, in C10, it was the first time where we had LiDAR, 250 Orin AI processor with advanced smart driving solution. Now, we are actually comparing with some peers, particularly like NIO, Li Auto, XPeng, and Huawei. We have been comparing with them and benchmark against them. In C10, we released in Hangzhou and Shanghai, where they have been available, NAP. On expressway and urban expressway, auto-driving has been available. We make some comparison. At least we are not the best, we are not the worst. We are really in the middle among all the self-developed R&D, and their algorithm. It's just launched. After three months or six months optimization, our capability will gradually get closer to the top performers. Of course, we are looking at BEB, big LLM model, large model. Given another year, we definitely will become among the tier 1 players. In smart driving, we stick to in-house R&D to catch up with the best or even overtake the best. We have a lot of foundation because I used to be coming from a startup team where we've been working on AI vision. That was our foundation, that was our background. Now for models, as I mentioned, in Europe or global markets, relatively speaking, they want smaller vehicle. Very different from Chinese demand. Automobile is a global market, where you have to be globalized to survive. You have to develop overseas models. You have to. You have to develop with more intensity because competition in China is so intense. You have to go global. For Leapmotor, this is really the top priority. Also now we have the collaboration with Stellantis. We are a step ahead of others. We can leverage on Stellantis' network of logistical distribution of parts. They have 10,000 dealers around the world, and also they have a global manufacturing system. All this will help us for Leapmotor's internationalization or global business. We need to focus on China and overseas at the same time. We have to develop all the models. How do we meet the diversification models? For the factories, we are having more planning. For example, Jinhua factory is planned for C series. C series are going to come from Jinhua factory, and even smaller models will be in Tianpan factory. We have two manufacturing sites to meet all the production needs. We want the concentration so that the supplier can build their facility next to our factory, so we have more concentration of manufacturing resources to get better value for money, better cost structure. Thank you so much. Thank you. Next, 0256, you have the call. Hello, Mr. Zhu, Mr. Wu. Thank you so much for your sharing. I'm Xin Zhaojun from Bohai Securities. Based on what you have said, like Leapmotor globalization strategy, I have two questions. Firstly, as mentioned, the overseas model, you're going to have new models launched for overseas markets. Now, specifically, what's the plan for the launch, and is there any market or country that you plan to go in first? Secondly, can you also talk about your joint venture with Stellantis, Leapmotor International, what are the new progress for the JV? Okay, the overseas models, the naming will be different. It's called A, B, C, D, E. In China, the smallest is A00. In overseas, this is A, Class A. The Chinese A0 will be Class C. The Chinese Class A will be Class C in overseas. All the models are in the planning. In the next two to three years, we're going to be launching these models. To begin with, it's going to be, as I mentioned, C10 and T03. Correspondingly, in overseas C10 will be called C+. It's going to be a Class C+. Next year, end of this year or next year, we're going to be launching a Class C, and also we're going to be launching Class A and Class B. In SUV and cross style, we're going to have Class A, and also Class C, and Class C+, the full range. We have plans to start with Europe. Now our strategy is we hope to go to four geography at the same time. We want to accelerate our global progress. Europe, South America, Middle East, Africa, APAC. All regions will be addressed at the same time. In 2024 and Q1 2025, we want to have the people in place, product in place. That will be our plan to drive our global efforts. Now, when it comes to overseas progress, first of all, we have completed the ODI. We have completed the approvals. Next week, our company will be incorporated based on the incorporation of our company overseas. Also, we have established the management team of the Leapmotor International, from CEO to marketing team, sales team, service team. The management place has been assembled for Leapmotor International. The executives are all in place, and they are now working toward the plan to launch in Q3, like the IP, finance, HR, distributor network, as well as the branding development. Everything was on track now. We are having a full team where we are building the dealership network on the ground, service network on the ground, which is our objective. We're going to be having a dealership model similar to the traditional OEMs. These are all on track. Before September, we should be able to complete everything and start to move in Europe, and then followed by South America, Middle East, and APAC. At the same time, all the products, basically, we have already developed the overseas version. All the Leapmotor products will be suitable for global sales. Understood. Thank you. Thank you. Congratulations for Q4 GP margin, as well as the results. I'm Jing Chen from CSCC Auto Analyst. I have a couple questions for you. First of all, you talk about C16, you plan for June or July to be launched or delivered. For C16, what is the expected ramp-up speed for C16? Secondly, you have four model on C platform, you have five models at the same time. What is the rough plan for sales volume for all these five models? C16 will be launched on the 25th of April in Beijing Auto Show. On the 31st of May, we're going to have SOP. We're going to have volume production in May, and we hope to start to deliver over 1,000 in June. In July, we're going to be delivering in mass. That's the plan for C16. For the four models this year, in terms of sales, the main player will be C series. C03, the contribution will be 20% of the CNY 250,000 to CNY 300,000. But 80% will be coming from C series. Now, specifically the breakdown, like C11, C10, and C16. The breakdown is difficult to say, but overall speaking, in the past, what used to be C10 buyers, they want to buy C11. Some are switching from C11 to C10. There was a complete overlap, but there is a lot of differentiation. They have their own features, like internal trim. One is simplistic, the other is luxurious. The outside look, one is a bit more young-looking, C11 is more classic. C11, it's timeless. It's really timeless. You never get tired of it. For C01 in 2023, we deliver 25,000. We hope we can get to 40,000 to 50,000. We want a more balanced contribution from all these models because it's also good for the production capacity. For C10, C16, they are sharing the same production line on the same platform. It's about 16,000 capacity in total. We don't want to have a lopsided distribution. We want C11 and C10, C16 to have more balanced distribution because they share the same platform. That will be beneficial in our financial arrangement. Got it. Very clear. Thank you. Thank you. We are running out of time. Perhaps we will take the last question. 3139, you have the call. Hello. I'm from Haitong Security, Xu Ming. It's honor to ask a question for you. My question is for the model price band. Subsequently, how do you plan for the price bands? And also, in terms of Stellantis, what is your collaboration? What price band are you working on with Stellantis? Leapmotor focus basically on CNY 100,000 to CNY 200,000 in the future, in the next 5 to 10 years. That's going to be the main price band, CNY 100,000 to CNY 200,000. Of course, there will be a bit more premium, higher price, like CNY 250,000 or maybe some entry below CNY 100,000. Primarily, CNY 100,000 to CNY 200,000. That's the main price band. Our product continue to focus on pricing based on cost. Absolutely, we're going to be innovating, driving down costs, and then we will price according to the cost. We can provide best in class. Best in class price, given the same feature, and best in class feature based on the same cost or based on the same price. And also, we have the in-house manufacturing. We have cost advantage because of that. And for every component, for example, like lens, headlights, at least you have over CNY 3,000 cost in terms of the headlamps or lights. We at least will have 15% of GP margin. That really help us to make a saving of CNY 400 or CNY 500 in terms of cost competitiveness. It's the same logic for all core components. Every component will have a gross margin, which will help us to gain advantage. We want to really consolidate that strength. We are not thinking about going premium because we have limited resources. We have to make the most out of it. We want to focus and prioritize CNY 100,000 to CNY 250,000 price band. The collaboration with Stellantis, what are the future collaboration? As I mentioned, in components and parts, we could make use of the EV advantage of China. We have the scale, we have the core component in China, where we have the strength here. We are able to collaborate with Stellantis on that front. In overseas, when ICE model went into China, it was the same thing. They formed a joint venture company in China. They sell their engine gearbox to China, or they put it into the joint venture. That's the same model we want to do in overseas. Of course, our overseas partner, they can also benefit because they are our shareholder as well. At the same time, they can get a better price. All these are for mutual benefits. I think mutual benefit is essential for this partnership. Okay, got it. Thank you so much. Okay. Thanks to the management, and thank you all for joining this earnings call. I hope to talk to you soon in next call. If you have further questions, feel free to reach out to the IR team of Leapmotor. That concludes the earnings call tonight. Thank you and good night.