Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies first quarter 2021 earnings conference call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I will turn the call over to Mr. Jason Yang, investor relations manager of Niu Technologies. Mr. Yang, please go ahead. Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the first quarter 2021. The earnings press release, corporate presentation, and financial spreadsheets have been posted on the Niu investor relations website. This call is being webcast from company's IR website, and the replay of the call will be available soon. Please note today's discussion will contain forward-looking statements made unde r the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements accepted as required by law. Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and the CFO, Mr. Hardy Zhang. Now let me turn the call over to Yan. Thanks, Jason, and thanks to everyone for joining us on the call today. In Q1, we saw a 322% year-over-year jump in China sales. We shipped nearly 145,000 units in China, propelled by an aggressive expansion of our retail footprint and a multi-channel marketing campaign nicknamed Year of the Niu. Additionally, our overseas market saw shipments of 5,000 units for the first quarter. The small decline of 15% in the overseas market was primarily due to the orders that could not be shipped out, resulting from the ongoing global shipping bottlenecks you are all aware of. The total Q1 sales for China and the international market were up 273% year-over-year. In Q1, not even the Chinese New Year holiday could slow down our retail expansion. We added 300 new branded stores across China, reaching 1,916 stores by March 31st. During our global product launch event on April 6th, we announced the opening of our 2,000th store in China. We're well on track to hit our Q2 target of 300 new stores for the quarter. For the international market, even under the restraints of COVID-19, we managed to add an additional seven flagship and premium stores, which now total 123 across Europe, the Americas, and Southeast Asia. This is in addition to the 1,000+ authorized Niu dealers in our global markets. For those of you who didn't already know, our company name, Niu, actually means bull or ox in English. The year of 2021 happens to be the year of ox in the Chinese lunar calendar. We kick off the Chinese New Year by launching the Year of Niu be a Niuer nationwide campaign. We enlisted the help of popular musicians and social media influencers, which generated more than 200 million views across multiple social media platforms during the holiday season. We also kicked off an over-the-air advertisement campaign during the Chinese New Year, which allowed us targeting over 110 million viewers across markets in China that we have identified as key to helping us accelerate our growth. We also collaborated with one of the hottest online documentary series called [audio distortion] on Bilibili, which helped us targeting another 41 million viewers in the key demographic segments. Our new branded Douyin and Kuaishou accounts also benefit from those activities with quarterly views reaching nearly 55 million views in Q1, marking a 38% year-over-year increase. Now in the overseas market, our social media channels gained nearly 1 million interactions on Instagram and Facebook. We also announced our partnership with Formula E world champion, António Félix da Costa, as the official Niu ambassador and kick off our partnership with Lime in the key U.S. and European market, w hich will help accelerate adoption of electric two-wheelers. We have been making noise both in the China and overseas market in order to position ourselves as the go-to lifestyle brand for urban mobility and helping us grow sales by more than 300% in China alone. Now riding our strong sales and marketing performance in Q1, we hit the ground running on April 6th with our global product launch, simultaneously announcing both China and international product releases. Building upon the customer demand for our GOVA series of electric mopeds, we launched the GOVA F series with F0, F2, and F4, and the GOVA C series with the C0. These are two key product groups that will help us expanding into the wide range of urban markets and the customer segments around China. During that same event, we launched our first electric kick scooter for Europe and the United States, the KQi series. These five new products were also accompanied by full upgrades to our existing series of mopeds and electric bicycles. First, all of the upgrades to the existing electric bicycle mopeds are made under the hood. First, we are very excited to launch the 7th generation of our new energy system, which saw upgrade of our proprietary battery management system, the introduction of VTech electric motor, and optimization of our FOC algorithm for the motor controller. Which can improve the driving range up to 32% and improve acceleration by 10%-15%, under the same motor power in most of our existing vehicles. Lastly, as we finalize commercialized version of our urban motorcycles, the RQi, we have made great stride of our mid-mounted motor that can reach speed of 160 km per hour. As for our product upgrades, let's start with the brand new MQi2S. An upgrade of the 2020 MQi2, which should serve as our flagship product under the new China National Standard for electric bicycles. The new M2s is equipped with our latest smart IoT technologies, a color display with navigation that can mirror your mobile phone, the Ok Go system with distance sensing, and the keyless ignition, which enable user to start a bike as soon as they sit on the seat. It's those small user experience touches that our customers really appreciate. The M2s expected to be priced at up to CNY 8,000. We also upgrade our classic UQi series with the all new color display, a new handlebar design with more intuitive control functions. Most importantly, we have given customers the option to upgrade to a larger battery, which increase the driving range by 35% or up to 75 km on a single charge on the new UQi. The upgraded UQi series is expected to be priced at up to CNY 6,000. For the new product, we launched two new GOVA series, the GOVA F and GOVA C series. Those two new series employ an all new design language for the electric bicycles in China, which will further expand our offerings for the mid-end product lines, which help us to reach a wider range of customers' taste. Inside the GOVA F series, we announced three new models, the F0, F2, and F4. F0 and F2 are classified as electric bicycles in China, and were introduced into the market on April 6th and May 17th respectively. The F4 is the electric motorcycle and will be introduced later this year in Q3. The entire GOVA F series has a masculine design style, which features the eagle eye headlights. All of those models are lithium iron battery based. The F0 has two versions, primarily differentiated by the battery and drive range of 50 km and 60 km respectively. Affordably priced at CNY 2,899 and the CNY 3,299 respectively, we believe those will be well received by the market. Our beliefs were confirmed when we launched the GOVA F0 through the JD.com presales on April 6th, where we sold 41,000 units and surpassed more than CNY 100 million in sales, setting the JD.com presale record for urban mobility products. The F2 has two versions, 50 km and 70 km range options, priced at CNY 3,699 and the CNY 4,099. The F4 has three versions with drive range up to 100 km, and expected to be priced at up to CNY 7,000. Now, under the GOVA C series, we have first announced the C0, an electric bicycle with a more feminine design style. The GOVA C0 come with multiple macaron dessert flavored color choices, and a wide variety of accessories, including a child seat, enable mothers to ride safely to take their children to and from school every day. The GOVA C0 also has two versions, with a drive range from 50 km-60 km, and expected to be priced around CNY 3,000. Since first announcing the C0 in April, we have received countless solicitations both online and in our stores around the country. We expect to release the C0 for sales starting in June. The GOVA F series and C series significantly expand our GOVA product line portfolios. The successful presale campaign for the F0 is a direct evidence that there is a large group of consumers who appreciate this design style and aesthetics. Together with the G- series, the three GOVA lines will offer our customers a thoroughly designed product that meet their taste and desires while being competitively priced and backed by our best-in-class technologies. Last but not least, we launched a completely new category in the Niu ecosystem of product with our KQi kick scooter. The urban mobility trends are changing around the world as customers adopt new models of safe transport and cities begin to reshape their urban centers. Our electric moped and motorcycles offer one type of mobility solution for customers in cities across Europe, the Americas, and Southeast Asia. We also recognize a rapid growth in user demand for micromobility products that cater to shorter one to 5 km trips. This is primarily being fueled by electric kick scooters in both sharing and consumer owned form factors. In order to meet this demand and add to our product lines, we have rapidly developed a team of seasoned engineers who are specialized in the development and manufacturing of micromobility products. All new KQi3 kick scooter will be the first of several models we'll release in the coming months for the key overseas markets. Now equipped with the best-in-class 350 watts rear hub motor and powered by our 48 volt Niu energy system, and with a wider and safer platform deck and the handlebar architecture, and wider tires. The KQi3 will outperform many of the similar priced product in the market in both performance and the riding stability. Of course, like all our products, the KQi3 is app connected. The KQi3 has a pro and sports version and will be priced from $599 in the United States, and EUR 599 in Europe. An online pre-sale will begin in the coming weeks with deliveries directly to the customer homes later in summer in Europe and United States. In addition to our current 1,000 plus authorized Niu dealers, the introduction of a kick scooter will also allow us to open new range of retail channels that were previously not ideal for our electric mopeds. Including big box retail and electronic chains like Best Buy, MediaMarkt, micro-mobility retailers, and online platform like Amazon. I want to wrap up with a short comment about ramping up our manufacturing capacity. For those of you who have been following along for the past few quarters, you know we have planned to increase our manufacturing capacity by an additional 1 million units per year when we complete the phase II of our Changzhou factory. We expect the phase II to be completed by early Q3, which will bring our total annual design capacity to 2 million units. Easily supporting the projected growth in the quarters ahead. With this, let me turn to Hardy to talk about financials. Thank you, Yan, and hello, everyone. Our press release contains all the figures and the comparisons you need. We have also uploaded Excel format figures to our IR website for easy reference. As I review our financial performance, we are referring to the first quarter figures, unless I say otherwise, and that all monetary figures are CNY, unless otherwise noted. Our Q1 sales volume reached 150,000 units, representing a 273% year-over-year growth. China sales volume increased by 322% as a result of retail sales network expansion and effective branding activities. International sales volume, however, declined by 15% due to COVID-19, especially the recent lockdown in Europe and a more challenging environment for international shipping. In March, the Suez Canal was blocked for one week. Many ships were delayed or canceled. We were not able to deliver our products on time. The situation has improved gradually since April, and we are catching up on delivery. With regards to product mix, N Series accounted for 9% of total sales volume, partially due to the lower international sales. M-Series accounted for 13%. U Series accounted for 21%, and GOVA series accounted for 57%. Out of the 57% from GOVA series, 38% was from the mid-end product G0 model and 14% was from G2 model. In China, the COVID-19 rebounded in Q1, which helped to accelerate the adoption of electric bicycles because many people pay more attention to social distancing and try to avoid public transportation. GOVA series was a very popular choice for many new customers, considering its attractive retail price. This is the key reason for GOVA series taking a larger proportion of sales in Q1. Total revenues increased by 135% to CNY 547 million, above the guidance we provided earlier, mainly due to the higher China sales volume and stronger sales in accessories and spare parts. The revenues from accessories, spare parts and services reached CNY 102 million, representing a 118% year-over-year growth. The strong sales came from both China and the international market. Sales from China market increased by 111% due to strong offline sales, and the international market increased by 123% due to strong sales of battery packs to sharing operators. The ASP declined by 37% year-over-year. Let's look at the detailed reasons. For China market, the scooter ASP decreased by 27%, mainly due to the sales of low price G0 and the G2 models, as well as sales discount offered. Out of this 27% decline, around a 20% was caused by the sales of these two models. The remaining 7% was due to the change in other product mix. For international market, the scooter ASP decreased by 15%. The decrease was caused by depreciation of U.S. dollar, and also more significantly, the change in the way distributors place orders. In Q1, many distributors chose to place separate orders for scooter body and the battery pack, so as to reduce their international shipping cost. As a result of such separate orders, battery pack sales were booked as the accessory and spare parts revenue instead of scooter revenue. After we normalize this impact, the ASP for international sales only decreased by around 5%. In other words, out of the total 15% ASP decline for international sales, around 10% was caused by the way of separate orders, and around 5% was caused by depreciation of U.S. dollar. This way of separate ordering will likely continue into Q2 and Q3, considering the increasing costs for international shipping. For the ASP of accessories, spare parts, and services, it was CNY 682 per scooter, a 42% decrease compared with Q1 last year. The decline was mainly due to the very low volume base in Q1 last year, which was only around 40,000 units. Because of the very low volume base, the ASP for accessories, spare parts, and services was abnormally high last year. If you compare the ASP with Q2, Q3, and Q4 last year, our Q1 ASP actually increased. Our revenues from accessories, spare parts, and services do not fluctuate as much as the sales volume because a portion of the sales came from existing customers. For example, the data service and some accessories. In summary, even though our ASP was down by 37%, after considering the factors mentioned above, the international scooter ASP, the accessories, spare parts, and service ASP were both stable compared with early quarters. The decline of China ASP followed a similar trend as what we all saw in Q3 and Q4 last year, due to the launch of GOVA series. In April, we launched F0 model, and the sales price for F0 model was CNY 200 higher than G0. We also expect the product mix in China to improve in the second quarter. Both will help to stabilize our China scooter ASP. Gross margin was 23.8%, 0.2 percentage points higher than this time last year. There are three key drivers. First, the sales of low-margin models like G0 and G2 reduced our margin by around 4%. Second, the lower proportion of revenue from high-margin international sales killed our margin by around 3%. Third, the cost savings on components, raw materials, and lower other costs, for example, manufacturing and labor costs, benefits from economy of scale, increased our margin by around 7%. In summary, the impact from unfavorable change in product mix was offset by various cost savings. This is the key reason for a stable margin in Q1. In the past few months, we have seen the commodity price continue to rise, which affected our raw material procurement cost by 5%-10%. To mitigate the impact on gross margin, we increased retail sales price by CNY 100-CNY 300, or 1.5%-7.5% for selected models in China in May. We may have another price increase for additional models together with performance upgrade in the coming months. We believe the price increase are affordable and reasonable for our customers. These price adjustments will help us to stabilize the ASP and also to mitigate the negative impact on our gross margin. Our total operating expenses, excluding share-based compensation, were CNY 118 million, increased by CNY 35 million or 42% year-over-year. The increase was mainly caused by the higher sales and marketing expense of CNY 20 million for branding activities during Chinese New Year. CNY 4 million for retail sales network expansion, CNY 8 million for higher staff costs, and around CNY 6 million for foreign exchange loss. Our sales and marketing expenses were particularly high this quarter, mainly due to the branding expenditures associated with the Chinese New Year event mentioned earlier. As a percentage of revenues, our operating expenses, excluding share-based compensation, was 22%, lower than the 36% in Q1 last year, but higher than other quarters in 2020. In the coming quarters, we expect the operating expense as a percentage of revenue will fall back to the regular level, similar to early quarters. Our government grant was CNY 0.4 million in Q1, decreased by CNY 7 million compared with last year due to the delayed payment from governments. In May, we received a grant of CNY 41 million, a part of that will be booked into the P&L in the second quarter. Our income tax expense was CNY 9 million, much higher than the same period last year, mainly because some entities within the group become profitable and have used up accumulated loss. This quarter, even though our consolidated profit before tax was only around CNY 4 million, we booked CNY 9 million tax expenses for a few reasons. First, some expenses are not tax deductible. For example, share-based compensation. You need to add that back before calculating income tax expense. Secondly, the profit and loss were not evenly distributed among different entities, companies within the group because we need to pay tax based on each company instead of as a group. For example, in Q1, the company for China sales was very profitable, but a company for international sales make a big loss. We have intra-group transfer pricing arrangements to redistribute profit. That will take time to adjust. Thirdly, tax rate applied is average tax rate calculated based on full-year forecast instead of one specific quarter. For this year, we expect the average tax rate will be around 15% on a full-year basis. Our GAAP net loss was CNY 12.4 million. After adjustment of share-based compensation, we made a profit of CNY 6.7 million, improved by more than CNY 25 million compared with Q1 last year. We made a GAAP loss this quarter mainly due to higher brand expenses. We believe the brand expenditures are more investment in nature. Worth well spending. It increased our brand awareness and will support our continued growth. Turning to our balance sheet and cash flow, we ended the quarter with CNY 1 billion cash term deposit and short-term investment. Our operating cash flow was negative CNY 16 million, mainly due to prepayment for raw materials in order to secure supply for production. Our Q1 CapEx was around CNY 64 million, mainly related to capacity expansion of CNY 13 million, new store building of CNY 48 million, and R&D spending of CNY 3 million. Let's turn to guidance. We expect second quarter revenues to be in the range of CNY 900 million to CNY 1,030,000,000, an increase of 40%-60% year-over-year. With that, let's now open the call for any questions that you may have for us. Operator, please go ahead. Certainly, sir. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. Once again, it is star followed by one to ask a question. We have the first question. This is coming from the line of Alex Potter from Piper Sandler. Please go ahead. Thanks very much. I guess the first question I have is just on gross margin in the coming quarters. There's really a lot of moving parts right now. There's new products that are coming in at different price points. There's raw material inflation, there's battery shipment issue, which all kinds of different things. Some are positives, some are negatives. Last quarter, I think you had said that you expected gross margin for this year to be roughly similar to what it was last year. Do you still feel that way, or are you reassessing after viewing some of these new changes? Thanks, Alex, for the question. For us, we still want to maintain a similar margin as what we delivered last year. That's why in May, we increased our retail sales price by 1.5% - 7.5%. We may make another price adjustment in later months based on how the raw material inflation goes, also based on the pace of new product launch. For the second quarter, of course, our margin will be a little bit challenging because we began to see the price increase since April. We increased the retail sales price only from early May. There's one month lagging for the price increase. For the second quarter, currently, we estimate our gross margin will be anywhere between 20% and 22%. In Q3, Q4, we still want to target around 22%-23%. The thing within our hand is price increase, and also we'll also renegotiate some of the costs with our suppliers trying to secure additional cost savings. This is answer to your first question, Alex. That's super helpful. Maybe a little bit more on the cost pressure, the inflation. I know obviously inflation is a topic that a lot of people are thinking about right now. What specifically is it within your supply chain? Is it primarily batteries, or is it basically across the board price inflation of all kinds of components and raw materials? It's across the board. It's because our components also involve steel, plastics, and also battery cells. Most of the raw material we see the price increases. It's very much linked with overall commodity price increase. I think basically in the last few months or so, we're actually seeing the price increase starting in, l ater March, since actually hit at March and April. We started seeing that some of the raw material price actually hit the peak in early May. We actually increased our product price to reflect the latest update in term of the BOM price. Going forward, hopefully we'll see the raw material price will stabilize and actually potentially could start to decrease. I'm interested also on this topic of splitting apart battery shipments versus the scooter shipments. Is this a tariff issue? How exactly do international importers save money by taking delivery of the battery pack separately from the scooter body? The reason is these days, because of the shortage of containers, the international shipping companies become more strict on the cargo can be shipped. For the battery pack, because we have lithium battery within that, it was treated as dangerous cargo. Therefore, the shipping company will charge much higher tariff for anything which has a lithium battery within it. If we separate the order between the battery pack and the body, the body part can still be treated as a regular cargo, where the shipping tariff is much lower than a dangerous cargo. The difference is more on whether it's dangerous cargo or it's regular cargo. That's the key reason besides the different tariff. The different tariff is mainly in the U.S. In the U.S., there's different tariffs on battery pack and the body parts. Because of the shortage of the containers, shipping company become very strict on what kind of things are within the container. They check all the things. Many distributors try to put them separately to enjoy a lower tariff for the regular cargo. That's the background. Thanks. I appreciate it. I'll pass it on. We have the next question. This is coming from the line of Vincent Yu from Needham & Company. Please go ahead. Thank you, management, for taking my question. I have three questions. First one is, we had a very strong delivery number for first quarter and the store opening pace all seems to be on track. My question is, how should we think about the previous guidance to sell more than 1 million units for 2020? Is there a higher annual number that we are comfortable that we would be able to hit after the strong quarter? My second question is in ride-sharing platform for our international business. We have seen continued investments made by ride-sharing platforms into the e-scooter, riding-share markets. Can management talk a little bit more about what should we think about challenges and the opportunities that such trends brings for Niu? My last question is that for the new energy vehicle industry, have been seeing chip shortage. We know we have less demand for some chips. We also have quite some chips associated for our app. What kind of effects we have on our products, in terms of margin or production schedule, if there's any? Thank you. Let me give the first cut of answers for the three questions, and then Li will begin to supplement. First of all, store opening, definitely we are on track to achieve our target. We have opened 300 in Q1. We are going to open at least another 300 in the second quarter. With more opening, definitely we do see the volume continue to grow. Definitely, in March, we gave a guidance of 900,000 unit volume to 1.1 million units. We do see potential upside for the volume growth, but I think we'll wait till the end of Q2 before we make another adjustment for our full year forecast. This is more on first question. For the second question about the ride sharing business, we are mainly supporting ride sharing business in the international market, and we do see the demand continue to go very strong. During COVID, we do see people pay more attention to social distancing, mainly there's also fast adoption of electric scooters in the overseas market. Some of our sharing operator already started to deploy our vehicles in many cities across the world, that is very positive for our business growth in both the second quarter also in quarters ahead. We believe that's not only a short-term momentum that maybe change the people's behavior in the longer term. I think we have a full upside in the even longer term. For the third question about the chip shortage, first of all, we do see the dreadful chip shortage. However, compared with the EV manufacturer, the chips we use in our scooters are less complicated compared with the EV manufacturer. Therefore, we are able to secure majority of the things we want to get. Currently, we need to give a three to six months rolling forecast to our suppliers. Sometimes we also need to make a small prepayment to secure the supply. Therefore, we do see the challenges, but so far we have some action we can take to mitigate the impact. Li, any other comments? I think Zhang captured it. I think the only thing to add is basically when we initially announced about 1 million plus units, I think that's only talking about scooters and mopeds. It hasn't really covered our new products like the kick scooters. Obviously, the kick scooters, we already announced that it will be on pre-sales in the next month or so, and then will be shipped basically in early Q3. That will actually start adding more volumes, in addition to the 1 million units of the moped scooters. Thank you very much. Thank you. We have the next question. This is coming from the line of Jing Chang from CICC. Please go ahead. Hi. Thanks for, Yan, Hardy, and Jason for your interpretation of first quarter results. I have two questions. The first is about the expense. The selling expense in first quarter increased a lot, we can see. Hardy has just explained that we adopt more price discounts and also other marketing activities. I don't know that is this caused by the more fierce competition or just due to our subjective view on how to see the trends in the future? The second question that we can see the number of stores increased by 300 in the first quarter, so maintaining rapid growth. What is the regional distribution of new stores? Can we see an obvious trend of more stores opening in lower-tier cities, and with also our new product, the F and C series, targeting more on mass medium market. What is the proper price range we can expect in the future? These two questions. Thank you. Thanks again for the question. Let me answer the first one about the expenses. This year, the marketing expense is a very high amount. It was mainly due to the branding activities we made during the Chinese New Year. This year, Lunar Chinese New Year, it's the Year of Ox, or in China, we call it "niú nián". Because of that, we spent quite some money for the branding purpose. We also engaged a very popular singer who take a video and help us to spread the Niu brand. It's mainly for the branding purpose instead of for pure marketing purpose. Chinese New Year is a one-off event during Q1, therefore, we do not expect the sales marketing expense to continue to be a very high percentage of revenue. We do believe the percentage will fall back to the normal level that we see in other cultures. This is answer to your first question. For the second question on the store distribution, I'll ask Yan to comment on that. I think just quickly to comment on the stores. It more tilts towards the lower-tier cities, basically tier 2, tier 3, and some of the tier 4 cities, as opposed to initially tier 1 cities. I think this is partially driven, the fast store expansion is really driven by our suitable products for lower-tier cities. Basically, the three series, the GOVA series, the GOVA G series, and actually GOVA F series coming April, and hopefully also the GOVA C series coming in June and July. We're actually starting to see in Q4, we start seeing that phenomenon where with the suitable product, and we actually have a strong brand recognition and brand name in the lower-tier cities. But in the past, we just don't have a suitable product for those cities to open more stores. We actually expect the store opening speed, basically, we're hoping to maintain a constant speed of at least 300 stores-ish per quarter. What is maybe proper price range of average selling price we can expect in the future? Maybe CNY 3,500-CNY 4,000 this range? You mean the blended ASP for the coming quarter? I think it will be similar to what we achieved in Q3 last year. It's around CNY 3,500. We have a potential upside up to CNY 4,000, depending on a few things. First, about the price increase, how much we get that. Whether we continue to increase the retail sales price. Secondly, it depends on the recovery of international sales. The more quickly the international market begins to recover, the more quickly we can solve the shipping problem, then of course, we are going to have more. Thirdly, it also depends on the sharing business, because one of the key contribution for our high ASP coming from the battery pack sales to sharing operators. If the adoption rate of sharing vehicles in overseas market become higher and higher, the sharing operator will continue to purchase the battery pack. I think these are the three key drivers for the potential from CNY 3,500 to moving towards CNY 4,000 in the future quarters. Thank you. We have our next question. This is coming from Bin Wang from Credit Suisse. Please go ahead. My first one is about sales momentum in April and first two weeks of May, because you actually give some color about the F series in April. That's why I just wonder if you can share about sales momentum in the past one half month. That's number one. Number two is about the margin. You actually gave the guidance for second quarter, I think you said it was about 20%-23% in the second quarter, and the second half will be 22%-23%. Assume this is the gross margin guidance, what will be the net margin likely? Because in the first quarter, we got a similar or even higher gross margin by zero in the bottom line. What should we expect in the bottom line net margin? Should be around 5%-6%? Thank you. I think for the first question about the sales momentum, I think our sales continue to be very strong in April. I think our sales growth was more than 60% close to 70% growth in April. That was still with the backlog of quite a lot of F0 models where we were not able to deliver in April. We continue to deliver some of the pre-sales orders in May. In short, we do see quite a good momentum into the second quarter. That's why when we gave the revenue guidance to give a 40%-60%. It's a very, very relatively wide guidance, mainly because there's so many uncertainty about the delivery, shortage, et cetera, et cetera. In general, we do see continued strong sales momentum. In terms of gross margin, I think you are right. In the second quarter, we are looking to achieve anywhere between 20%-22%. In the remaining two quarters, we target anywhere between 20%-23%. On annual basis, it's likely we end up somewhere around 22%. That's how we see the gross margin potential. Of course, there are so many moving parts. As mentioned earlier, there is a commodity price increase. There's so much fluctuation. They say it does make things complicated. Also, there are so many things coming from our international market. The international market has a significant impact on our gross margin. Our target is to maintain that, and we have price increase tools in our hands. We can manage that. There's also quite a few other things like launching new KQi e-bike to help with that. That's the answer for your second question. Actually, you all talk about the gross margin, because in the first quarter, you have a pretty decent gross margin, but you actually have zero in the bottom line. My question is about the bottom line. I think in terms of bottom line, I think after gross margin, what will be next is the operating expense as a percentage of revenue. You need to deduct our operating expense. The operating expense as a percentage of revenue in Q2, Q3, Q4 will be similar to what we achieved last year. Q1 is kind of a special case because we spent a lot in the sales marketing. If you look at the R&D, the G&A, they are very reasonable amounts. The G&A is slightly higher in Q1 because we have around CNY 5 million coming from foreign exchange loss. Throughout the remaining of the year, you won't see that much. Only the sales marketing was a little bit high in Q1 because of this Chinese New Year event. In the remaining quarter, last year, on average, our OpEx as a percentage of revenue was around 15%. 14%-15% is something we can think about. After you deduct that 14%-15% from the 22%, you got like 7% before tax, 7%-8% before tax. I think basically, the Q1 is the odd quarter because traditionally, Q1 has always been a low sales quarter. If you look at the sales as a seasonality. This year in Q1, we did spend quite a bit in marketing to kick off the Chinese New Year, really try to make sure this year start with a high note. That's why we kicked off the Year of Ox to be Niuer thing. Coupled with the lower sales season in Q1, by lower, I mean with respect to the four quarters within the entire year. That's why in Q1, you see a huge marketing expense. If we spread over the entire year, the average marketing expense actually will be fall in line with what happened last year. Thank you. Thank you. We have our next question. This is coming from Alice Ma. Please go ahead. Hi, management team. Thanks for taking my question. I have two questions here. The first one is could you please remind us of the OTA function? Like how many times have you done OTA for the previous electric scooters? I saw that you have improved some of the intellectual characteristics of your new products launched in April. How do you view that the end consumers are viewing such intellectual characteristics? My second question is about the batteries you use for different segmentation of your products. Like for the lower-tier products, do you still use the NCM or LFP battery, or what kind of battery will you use in the future? Could you please give us some guidance? Thank you. I think, great questions. First of all, on the OTA, typically, we do OTA update every quarter or so, every two or three months or so. I think it's really just the OTA to upgrade the ECU, the software in the ECU, as well as some of the softwares in the motor controllers. Now, as I mentioned in the call, some additional smart functionality like a color display with the navigation mirror of your phone, that actually requires not just the OTA software upgrade, it actually also requires hardware upgrade. That's why we actually build the hardware upgrade into the new model as well as the existing models. Along with the upgrade, we manage also to increase the product price. That allow us to actually increase the ASP to offset the downward pressure on the price due to the product mix. So far, based on some of the upgrade product like the M2s, hasn't really come to the market yet. It will be in the market in May. The UQi upgrade will also be in the market in May. We haven't really seen the actual user feedback from those upgrades yet. Based on the user comments from our product launch, as well as the user comments from our social medias, basically, the users are actually asking for those upgrades. Even we have users with existing MQi2 product asking whether their current product can be upgraded. They're willing to pay more than CNY 1,000 just to get the upgrade on the color display and all the smart functionalities. Now, I think we expect those upgrades to be well welcomed by the users. Now, the second one on the battery solutions, I think you're absolutely right. Basically, for the higher-end products, like the NQi-series and M-Series, we tend to use more the NCA and NCM batteries, the lithium-ion battery, NCA, NCM, due to the higher battery densities. Such that we actually can put more battery capacities in the scooter to give the scooter a longer drive range. By the way, also recognize the cost of NCA and NCM is a bit higher than the LFP batteries. For majority of GOVA series, the GOVA F, the GOVA G, and then potentially the GOVA C series, we use the LFP batteries, where actually will help to reduce the cost such that we can price at a relatively lower price to our users while maintaining a similar margin as our higher-end priced product. What sacrifice of it, the compromise we took is with the LFP batteries, we are not able to put a lot of battery capacity into those batteries, because the weight constraint of 55 kg of the entire scooter. That what the user will compromise is actually on the drive range. On those ones, we try to compensate that with basically the upgraded VTech motors and also the improved tires such that, for example, the low-resistance tires will give a slightly bump up on the drive range. I think that's practically how we line up the battery solutions, in order to basically to offer a wide range of pricing product to our users, at the same time, maintain a healthy margin. Thank you. A little catch up on the previous question. You will for sure not using the SLA battery in the future, right? Since I also heard some comments from the end users that normally the scooters from Niu are having a more accurate battery management system, comparing with the other products in the market. You could have a better accurate manufacture, like how much the SoC of the battery. When you use the LFP battery, can you also reach such accuracy in the future? I think that's a great technical question. When we first adopt using the LFP batteries, we actually realized that without using a better SoC solution, then the reading of the battery capacity is not as accurate as the NCM batteries. We start exploring with the LFP batteries last year, actually, last year. We quickly actually improved the SoC within the LFP battery pack. As well as, basically, the battery management system, as well as the SoCs in the controllers, so that actually to improve the battery reading capacity accuracies. Our accuracy is 20% higher than what used to be in the market, and that actually will get us almost on par with the NCM, NCA batteries. Very clear. Thank you. Once again, ladies and gentlemen, if you star one to ask a question. Seeing no further questions, I would like to hand the conference back to our host. Please go ahead sir. Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you. Ladies and gentlemen, that concludes our conference call for today. Thank you all for your participation. You may disconnect now.