Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Niu Technologies fourth quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. Later we'll 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. Now I'll turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead. Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter 2023. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our investor relations website. This call is being webcast from our company's IR site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual result 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 except as required by law. Our earnings press release in this call included discussion of certain non-GAAP financial measures. The press release contained a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Fion Zhou. Now let me turn the call over to CEO Yan. Thanks, Kristal, and hello, everyone. In the fourth quarter of 2023, our total sales volume was 137,000 units, maintaining a safe level one year ago with a slight year-over-year drop of 0.6%. Specifically, sales volume in the China market dropped by 6.4% to 110,000 units, while sales in the overseas market had a significant increase of 33% to 27,000 units. Total revenue in Q4 was CNY 478.7 million, a decrease of 21%. Those results wrapped up the financial year of 2023. In In 2023, the total sales volume was 719,000 units. Total revenue for the entire year was CNY 2.7 billion. Now, the year of 2023 presented significant challenges for Niu's operation. The lingering effect of lithium battery price hikes in 2022 continued to impact our sales in the first half of 2023. While the price of lithium battery returned to normal levels in the second half of the year, our business faced additional setbacks due to consumption upgrades and downgrades in the top-tier cities in China. This trend, characterized by cautious spending behaviors among the premium market customers, resulted in a slowdown in sales. Now, in the international electric two-wheeler market, we encounter challenges both externally and internally. The decline of the electric moped market in key European countries such as Germany and the Netherlands, coupled with temporary operation disruptions due to issues faced by our distribution partners in Europe, further hindered our growth in 2023. Now, despite the headwinds, our 2023 presented itself as a year with opportunities to reflect and refocus our strategy. In the China market, our product strategy remained focused on the premium market segment, enhancing our product line by growing our Classic series and also by successfully introducing a more sporty-style Falcon series. One notable product released in 2023 is the MQiL. The legacy product updates our iconic M series with significant design and performance improvements. In just seven months of launch, the MQiL sales volume in 2023 represents 16% of China's total sales. The Falcon series is also another popular series that we introduced in 2023 that quickly became well-known styles besides the Classic Halo Light series with the recent launch of F400T, F200, F100 products. The new F series together represents nearly 35% of total China sales. Now, our dedication to crafting premium products is complemented by our unwavering commitment to build a premium brand. Throughout 2023, we remained deeply engaged in branding and marketing activities, leveraging various user events and cross-brand collaborations to strengthen our presence in the China market. We actively participated in exhibitions and roadshows, collaborating with leading lifestyle brands such as The North Face Mountain Festival, SneakerCon, G Fusion Game Fest, and the Designer Toy Expo. These events provided us with valuable opportunities to showcase our products and elevate our brand presence. Simultaneously, we maintained a robust online presence through strategic communication and marketing campaigns, predominantly on short video platforms like Xiaohongshu and Douyin. Collaborating with over 600 KOLs and KOCs, our content generated over 250 million views, further solidifying our brand's digital footprint. Furthermore, 2023 saw us embark on impactful cross-brand collaborations such as our partnership with globally recognized IP Kumamon, resulting in the launch of new cross-Kumamon G100 scooters. Additionally, in Q4 2023, we established a significant official partnership with JD Gaming, a leading e-sports team in China, and the finalist in the League of Legends World 2023. Moving forward, we'll continue to leverage our strategic collaborations and high-profile events to amplify our brand visibility and reinforce our position in the market. Now, turning to the overseas market. In 2023, we encountered a mix of challenges and opportunities. Our electric two-wheeler sales experienced a significant decline of 70%, primarily attributed to the operational disruption faced by one of our key distributors. However, our micro-mobility segment saw a modest increase of 0.5% year-over-year. Despite the decline in the electric two-wheeler sector, we have initiated efforts to make operational adjustments to improve our performance since the second half of 2023. We continue to introduce new products in 2023 in the electric two-wheeler market. In the fourth quarter, we introduced the RQi, a high-performance urban quad electric motorcycle, to the European market. Its cutting-edge design, swift acceleration, and integrated smart features such as keyless lock and unlock, GPS navigation, and OTA update have been met with enthusiasm from the market. Alongside the RQi, we launched the XQi electric dirt bike, available in two variants: the XQi3 Street for urban riders and the XQi3 Wild for off-road adventurers. The XQi quickly garnered acclaim, winning the 2023 Gold Winner of the New York Product Design Awards. Furthermore, 2023 marked the official launch of our new battery-swapping solutions compatible with our newly introduced F600e moped. This initiative aimed at collaborating with partners across Southeast Asia, South America, and Europe to revolutionize the way riders engage with our product by offering quick, efficient battery swaps, thereby opening doors in the markets that we had previously yet to penetrate. We officially kicked off the solution in Q4 2023 and expect to have battery-swapping cabinets available by working closely with three to five operational partners by the end of year 2024. In the micro-mobility sector, we delivered sales volume slightly higher than the previous year with an increase of 0.5%. However, the total activation number in 2023 grew by 2x compared to 2022. In product strategy, focused on rounding our product portfolio to cater to a broader spectrum of needs, we launched our premium KQi Air and the KQi Air X models, constructed predominantly from lightweight carbon fiber for an incredible low weight of under 12 kilograms, solidifying our range in micro-mobility categories. With the KQi Air series, we now brought a comprehensive lineup that spans from high-end innovative design scooters in the $1,000-plus range to high-performance scooters in the $800-$900 range to accessible entry-level options in the $300-$400 bracket. This diverse range lays a strong foundation for anticipated sales growth in 2024. The expanded sales channel of our micro-mobility product also played a big role in the growth. In 2023, we transitioned from focusing on online sales throughout Amazon and Shopify to a combination of online and offline sales by working with official retail partners like Best Buy, MediaMarkt, Boulanger, and more. Through those retail partners, we were able to place our products in more than 1,000 physical locations in the United States and Europe. Our active participation in global expos and roadshows, including the AIM Expo in Las Vegas, IFA in Berlin, and EICMA in Milan, and the electric expo in various countries, has significantly elevated Niu's brand visibility. Moreover, our inclusion in popular media, such as the appearance in the movie Murder Mystery 2 and TV shows like Drew Barrymore's show and The Price Is Right, has pleasantly surpassed our expectations, further enhancing our brand's presence on the global stage. Now, as we move into 2024, our optimism for growth is brought by strategy adjustments laid out in 2023 across our operations. In China, our commitment remains strong towards the premium market segment, focusing on premium product development, targeting very specific consumer segments, channel expansion into Tier 2 and Tier 3 cities, and same-store sales growth via online and offline traffic optimizations. In terms of product, back in 2022, we introduced our new Classic UQi+ model, an upgraded U-series featuring improved light design, smart control, and enhanced rider ergonomics. This model quickly captured market attention and contributed to nearly 14% of total sales in 2022. Similarly, the MQiL introduced in Q2 2023 as an enhancement of the old-time popular M-series presented itself as a Classic return with performance improvement. The MQiL contributed to 16% of total 2023 China sales. Both models served a clear testimonial to the consumer's preference for our Classic design combined with upgraded technology, both in powertrain and smart functionalities. Those design styles are deeply ingrained in the minds of Chinese consumers as premium and high-quality. The successful launch of the UQi+ in the U-series and the MQiL in the M-series set the foundation for our new product. Now, on February 29, 2024, we debuted our newly designed NX series, continuing the design style of our first legendary product, the N1, which laid the foundation for our company back in 2015. The N1 was our first electric moped in China and has sold over 0.5 million units since its launch. It has not only become the legendary design for Niu but also a classic example of a premium, high-quality, smart electric scooter in China. However, since 2019, with the introduction of new regulations on China electric bicycles, the N1 no longer met the updated standard and had to be sold as a motorcycle, leading to a decline in sales. Nonetheless, consumers have long been requesting an upgraded N1 that complies with both the regulations for electric bicycles and motorcycles. Now, in 2024, we finally debuted the NX series, with the NX representing electric motorcycles and the NXT as the electric bicycle. Both models inherited the design style of the original N1 but are refined and upgraded to a more modern look. The design stands out with a futuristic style incorporating magnetic transparent panels to showcase its strong circuitry. The body is designed with sharp yet smooth aerodynamic lines. Additionally, we have upgraded the Halo Light, a signature element shared across our most well-known scooters. In the NX series, the Halo Light is embedded in the front panel, adding another futuristic touch to the design. The NX and NXT are equipped with our most cutting-edge technology functions to date, making them the smartest electric scooters on the market. For driving safety, they are equipped with the full-function ABS and TCS. Additionally, they feature the BSD, the blind spot detection, and RCW, the rear cross-traffic warning, along with the automobile-grade dashcam in the front and the millimeter wave radar in the back. To further enhance the riding experience, they are outfitted with the interactive TFT display serving as a smart cockpit. This incorporates riding-age features such as keyless start, navigation, remote access, as well as interactive features including lap timing, riding routes, logs, and an entertainment system. Also, to seamlessly integrate with the user's smart device ecosystem, the update also incorporates new smart features like maps for navigation and are compatible with Apple and Huawei HarmonyOS. The integration enables features such as voice control, shortcut phone display, and device management, including Apple's Find My features. Now, as one of the highest-performance electric motorcycles we ever released, the NX boosted maximum power to 20,000 watts with a top speed of 135 km/h and accelerated from 0-50 km/h in just 2.45 seconds. The NXT is available immediately since its launch, with pricing from CNY 6,000-CNY 12,500, while the NX is available in May. The NXT was well received, as evidenced by online pre-orders of the NXT initially through live streaming of major platforms. With the initial two weeks of launch, we secured more than 10,000 units in pre-orders, generating sales revenue exceeding CNY 100 million. This amount is 40% more than compared to our initial crowdfunding campaign for the release of the first N1. Those pre-order results positioned us as top sellers across all major e-commerce platforms during the period. Now, with the successful launch of the NX and NXT series targeting the premium motorcycle consumer segments and the performance-driven electric bicycle segments, we also plan to introduce several products to target a diversified user group. For example, our recently upgraded U1 product launched just a few days ago, targeting female users with this new color scheme, ergonomic improvements in handle and seat position, easy-to-use smart functionalities, and options to include babysitting accessories. The key to our product strategy in 2024 is to build our product portfolio targeting the premium consumer segment with diversified needs. Now, supported with those new products, we also plan to restart channel expansion in Q2 2024, building up the channel coverage across Tier 1 to Tier 4 cities. We initially focused on the top 45 cities, which represent 80% of our sales, with plans to build sales in the lower-tier cities as well. Now, with additional store counts, the key focus for 2024 remains the improvement of same-store sales, leveraging the combination of online and offline traffic. We initiated those efforts in the second half of 2023, conducting over 15,000 live stream sessions on Douyin and Xiaohongshu. We have recorded some successful cases of achieving a GMV of over CNY 100,000 in just one live stream session, indicating a successful online-to-offline conversion model we plan to further scale up. Starting in Q1 2024, we have continued live stream initiatives in 30 key city markets, enabling those stores to sell directly through online live streaming on a daily basis. Additionally, we have planned to launch online sales campaigns and co-create over 10,000 widespread social media content. With those strategies in place, we anticipate an improvement of same-store sales by 10%-20% in 2024, driving significant volume growth for the company and enhancing store profitability. Now, with our product strategy and retail channel expansion in focus, we aim to further strengthen our brand through marketing and branding campaigns. A recent highlight was our collaboration with the JD Gaming team, expanding our partnership from last year with joint forces with the JD Gaming team as their official electric scooter partner. This collaboration extends from social media engagement to product launches and seeks to make a significant impact within the Generation Z demographics. The collaboration with JD Gaming marks the beginning of a serious partnership plan for 2024. We intend to continue our co-branding efforts with several strong IPs targeting specific user groups and leveraging social media platforms. Now, in overseas markets, our comprehensive product portfolio, which includes the introduction of the MQi GT 100, RQi, and XQi models in the fourth quarter of 2023, strategically bridged the gap between our product offerings and high-performance electric motorcycle market demand. The MQi GT 100, priced at €5,000, together with the NGT, provides a comprehensive coverage from 50 cc to 125 cc electric mopeds. The RQi targets the electric motorcycle category, offering a high-performance quad motorcycle option with a price starting at €8,000. Additionally, the new XQi3 bike marks our debut product in the off-road motorcycle sector, priced at €6,000. The XQi3 model has garnered significant attention. Our active engagement in industry events, such as the AIM Expo in Las Vegas and Motorrad in Dortmund, Germany, has further amplified our brand visibility. At those expos, we brought our latest bikes, providing attendees, including influential KOCs, with the opportunity to test drive and rule out products. The positive feedback and heightened interest from the diverse user group received at those events has been instrumental in solidifying our presence in the market. Most importantly, since the later half of 2023, we have undertaken substantial adjustments in our business operations in the overseas electric two-wheeler sector. In some of our key markets, in addition to the existing distributors, we are establishing entities and the operation team for direct distribution of some of our products to retailers. We believe this direct distribution model will enable us to invest more in local branding and marketing, establish strong ties with customers, and make us more adaptable to local market changes. While those operational adjustments may initially delay the revenue recognition until products actually reach individual retailer dealers, they will help us create a strong foundation in each local market in the long run. With a comprehensive product portfolio and operational adjustments completed in Q1 2024, we are confident in kickstarting the growth beginning in the second quarter of this year. Now, in the overseas micromobility sector, we have established a solid foundation for growth in 2024 over the past two years. Although the book sales volume has remained relatively flat compared to 2023 to 2022, the actual sale volume to customers has doubled, as suggested by the activation number increase, and the trend continues at a 2x rate. We believe that our efforts in product portfolio building and the sales channel establishment have positioned us well for further growth this year. On the product portfolio front, with the introduction of the KQi Air, a full-carbon fiber, lightweight, high-performance kick scooter in September 2023, we now boost the comprehensive product lineup. Additionally, in January 2024 marks the launch of the KQi 300 series and enhancement of the popular KQi 3 series designed for all-terrain use. The KQi300 series features a dual-tube hydraulic suspension for better handling on uneven surfaces, promising up to a 60 km range per charge and starting at $700. We have several other product upgrades planned throughout the year of 2024. Now, with those product lineups, we made significant progress in entering retail channels in the second half of 2023, laying a solid foundation for growth in 2024. In the US market, we are well positioned in over 800 Best Buy stores and advanced in our efforts entering retailers such as Walmart, Target, and Costco. In Europe, our products are displayed in over 400 MediaMarkt stores in Germany, over 200 Boulanger stores in France, and we are making progress in placing them in nearly 100 El Corte Inglés stores in Spain. Additionally, we are moving forward with new retail partnerships with MediaWorld in Italy and retailers in Australia and others. By the end of 2024, we plan to double the number of point-of-sales of micromobility products by expanding the retail sales network. Heading into 2024, we are optimistic about regaining growth. In the China market, the excitement surrounding our latest product release has been palpable. Leveraging the momentum gained from the newly released products, we have also a rollout schedule prepared for all the other products throughout the year, as well as the channel expansions. In the overseas motorcycle market, with the readily shipped products and the operational adjustments already in place in Q1, we are confident in the growth of 2024. However, those operational adjustments may temporarily result in a decline in sales in Q1, as sales are actually booked differently due to the model change. For the micromobility segment, we anticipate fast growth in Q1 as well as throughout the entire year, given that we have laid out our product portfolio and established both online and offline channels at the beginning of this year. Now, with those factors considered, we anticipate the sales volume in 2024 reaching 1-1.2 million units. Now, I will turn to Fion to discuss. Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel-format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the fourth quarter figures unless I say otherwise, and all monetary figures are in RMB if not specified. As Yan mentioned, our total sales volume for the fourth quarter was 137,000 units, a decrease of 0.6% compared to the same period of last year. Specifically speaking, the China market sales volume was 110,000 units, and overseas markets were 27,000 units. For the full year 2023, the total sales volume was 710,000 units, including 601,000 units in China and 109,000 units overseas. The total revenue in the fourth quarter was CNY 479 million, down 22% compared to the same period of last year. To break down the scooter revenues by region, the scooter revenue in China was RMB 355 million, down 21%. This decline primarily contributed to a shift in product mix. As the Chinese economy was still in recovery, our premium series showed a slower recovery rate compared to the mass premium series. As a result, the ASP reached RMB 32.16, a 15% lower on a year-over-year basis. However, the ASP in each category has increased. The premium ASP remained almost RMB 5,000, and the mass premium ASP increased to nearly RMB 3,000. The overseas scooter revenue, including kick scooters, e-mopeds, and e-motorcycles, was nearly RMB 60 million. The blended scooter ASP decreased to RMB 2,200, down 49% year-over-year. Despite the higher sales volume contribution of kick scooters with the lower ASP, the new launched K1 and KUs contributed to 22% of the sales volume, which targeted towards the youth and the entry-level markets and have lower retail prices. Accessories, spare parts, and services revenue was CNY 65 million due to the decrease in the overseas spare parts and services, as we mentioned in the previous quarters. For the full year 2023, our total revenue decreased by 16% to CNY 2.7 billion, and China scooter revenue as a whole saw a 15% year-over-year decline to CNY 2 billion. The overseas scooter revenue decreased by 29% to CNY 349 million. The total overseas revenue, including scooters and non-scooters, contributed to 15% of the total revenue. Now let's look at the ASP in 2023. The overall scooter ASP was slightly decreased to CNY 33.23, a 3% down year-over-year, while the domestic scooter ASP was CNY 33.44, up 1%. This minor growth was driven by the higher ASPs in both premium and mass premium series, despite a shift in the mass premium in overall product mix. The overseas blended scooter ASP was $3,200, 21% down as the proportion of kick scooters increased, and also combined with the decrease in the newly launched lower ASP kick scooters in Q4. The gross margin for the fourth quarter was 19%, 3.4 PPT lower than the same period of last year, and mainly due to the product mix change in the domestic market. While for the year-end 2023, the gross margin was 21.5%, up from 21.1%, and representing a 0.4 percentage point increase on an annual basis, and mainly due to a reduction in raw material costs, especially in domestic new product lines. Talking about operating expenses, the fourth quarter OpEx was CNY 246 million, CNY 50 million higher than the same period of last year, and mainly due to a lower revenue base. Selling and marketing expenses were CNY 191 million, CNY 84 million higher than the last year, and primarily resulting from our expansion into the overseas markets, out of which CNY 43 million were from the overseas micromobility holiday season promotion, and the other half stemmed from the rental expenses, largely driven by the inventory buildup resulting from geopolitical conflicts and early stock-taking for the expected peak season in 2024. Additionally, the current warehouses are incurring higher unit-per-area costs since the micromobility sector is still in the early operating stage, and those expenses are expected to decrease in the subsequent quarters. R&D expenses were CNY 36 million, CNY 5 million lower than the fourth quarter of 2022, and mainly due to the decrease in staff costs and share-based compensation of CNY 8 million, and partially offset by the increase in design and testing expenses on new models, which have been and will be launched in 2024, of CNY 3 million. G&A expenses were CNY 19 million, CNY 28 million lower on an annual basis, mainly caused by the decrease in provision for credit losses of CNY 22 million and the decrease in staff-related costs of CNY 5 million. For the full year 2023, the OpEx was RMB 891 million, 15% higher than 2022, and the increase was mainly due to the provision for credit losses of RMB 114 million and the increased promotional activities and rental expenses in overseas markets of RMB 101 million, partially offset by a RMB 45 million decrease in G&A and also a RMB 40 million decrease in domestic marketing and promotions. Despite prudently raising provision for credit losses on overdue payments, we retain a positive outlook on future receivables collection, given our current partners' robust financial standing and their ongoing payments continuously. Exclude the non-cash expenses, such as the provisions for credit losses, depreciation and amortization, and share-based compensation, the OpEx increased 2% year-over-year. The non-GAAP OpEx was RMB 845 million. In the fourth quarter, we had a net loss of RMB 130 million and a non-GAAP net loss of RMB 122 million. On a full-year basis, due to the factors including the lower-than-expected domestic sales and the increase in overseas business expansion, as mentioned above, we had a net loss of CNY 272 million and a non-GAAP net loss of CNY 224 million. Turning to our balance sheet and cash flow, we ended the year with CNY 1,078 million in cash, restricted cash, term deposits, and short-term investments. On an annual basis, the operating cash flow was inflow CNY 96 million, primarily because we made a net income after adjusting for non-cash items. Our Q4 CapEx was CNY 22 million. For the full year, the CapEx was CNY 79 million, CNY 56 million lower than last year, as we cautiously opened up stores in domestic markets. Now let's turn to guidance. We expect the first quarter revenue to be in the range of CNY 438 million-CNY 480 million, an increase of 5%-15% year-over-year. Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which is subjected to change due to uncertainties related to a variety of factors. With that, let's now open the call for any questions that you may have for us. Operator, please go ahead. Thank you. We will now begin the question-and-answer session. To ask questions on the phone, please press star one one and wait for your name to be announced. One moment for the first question. Our first question comes from the line of Zijun Li from CITIC Securities. Please ask your question. Good evening. I'm Zijun Li from CITIC Securities. Thank you for your time. I would like to be more interested in the following questions. The first two are more about us, and the last two are more about our industry. The first one is this year's store expansion plan and the strategy. It means would we like to restore the original channel or more to supplement the new sinking channel? And the second question is about how to evaluate Ninebot's aggressive sales target this year and whether it would squeeze our sales target. And the above two is about us. And I wonder if you'd like to solve this too, and then I'm going to the sector. All right. So I'll talk about first on the store openings. I think you're actually a mix of basically, I think we're still going to be focused on the top 45 cities as first, and with the option to expand into other cities as well. So notably, in the past, if we look at the last couple of years, because of the lithium price hike, we have lost roughly about 500 stores. So I think the expansions for actually including the store we have lost and reclaiming back, as well as opening new areas. So I think those are basically I think we have a clear roadmap, actually a location map, on where to open stores and based on our new product portfolios. Now, I think with the second question about competitors, I think overall, if we look at our product offerings, so our current product offering is basically a price range anywhere between basically CNY 3,500 above to up to CNY 12,000. So if you look at this entire market as a whole, the volume above CNY 3,500, that volume is basically somewhere around 14-16 million units. So within that, let's call that our addressable market, 14-16 million units. And with that number, last year, we only did, what, 600,000. So even with this year's forecast, I think the market is still the addressable market is still very significantly larger than our volume target. So in the sense that I think we're less worried about the competitors, but I think we're more focused internally on how to get the best product out there and how to expand the channels, expand the stores so the consumers, the interested consumers, actually have a location to acquire the product. I think that sort of hopefully, that addresses your second question. Got it. Quite clear. And I really hope that this year could be and we could see a robust change in our market. And the next few questions about the sector. First one is the Nanjing fire has attracted the attention of the society to the batteries of the two vehicles. What is our view of the impact to this sector? And the second is our users are more concentrated in high-tier cities, as you just mentioned. And also, our users' time of using our products is relatively long and has accumulated for a long time. So I'm very curious about whether we can have ever done some analysis of our users' behavior on whether we can detect change in their consumption habits from this accumulated data, such as changes in the cycle of changing cars or batteries. Thank you. These are my two questions about the sector. Sure. I think, first of all, address the issue with the fire accident. I think it's unfortunate. So I think what it really calls out for high-quality products, and I think that that is so or in the case. What we observe in the market is many people who buy products, either low quality or they buy products, then they buy the original scooters, but then they complement with modified third-party lithium batteries. And usually, those third-party lithium batteries are second-hand lithium batteries. It's poorly manufactured with low quality. That's where so I'm not sure with actually the cause of Nanjing fire, but our experience back then, throughout the time, it's actually the modified lithium batteries, not original manufactured ones, are one of the main causes. So I think from our perspective, I mean, we have actually taken many preventive measures. For example, our scooters only work with our batteries, not working with the third-party second-hand batteries. I think with this, I think it's basically a it basically rings a bell saying it's basically, I think it's basically people cry for, I think, the high-quality product with original parts are necessary and to guarantee safety, right? So I think that's actually a set advantage for us. Now, I think in terms of your second question about user behaviors, I think typically, we observe that people tend to keep these scooters, I guess, for roughly about three to four years. I think three years is roughly sort of the usage cycle. I think for us, we're a bit too concentrated in the top-tier cities. I think this year, actually, what we're looking at is actually besides getting market share in the top-tier cities, is actually expand our footprint and getting more store coverage as well as market shares in the tier two and tier three cities, basically, with products that are suitable for those markets. Got it. Quite clear. Thank you again for your time. I sincerely hope that we could achieve the goals of this year and the new returns. Thank you. Yeah. Thanks. Thank you for the questions. The next question comes from the line of Yating Chen from CICC. Please ask your question. Hi. Thank you for receiving my questions. My first question is about our sales volume target. As we can see, the target growth for 2024 is more optimistic than last year. And so I'd like to know, what is the target sales volume of kick scooters? And what is the sales target for two-wheelers, especially for domestic and overseas markets? This is my first question. Thank you. No. I think for the kick scooters, we're looking at because in the past few years, even though the selling volume to our distributors remained roughly constant, but the sell-out, basically, the sell-out to the consumer has been doubled if I compare 2023- 2022. So that's because the comprehensive product portfolio, also, over the year, we're actually able to get to all these offline channels. So we expect the sell-out volume this year also double, which sort of implying the sell-in volume to the distributors actually doubled as well. So on the kick scooter, we're looking at somewhere anywhere between 200,000-250,000 units. So I think that's on the kick scooter market. Then the rest is sort of the electric two-wheeler. Within the electric two-wheeler market volume, I think the majority of them are going to be in the China side, where the international electric two-wheelers and electric motorcycles are probably somewhere around 20,000-30,000 units. The rest of it, all China. Thank you very much. My first question and my second question is about our profit margin. Especially, I'd like to know our product strategy in 2024. To achieve our sales volume target, will the average selling price or profit margin decline in 2024? All right. So I think, basically, we look at I guess this question sort of relates to our first newly product launched, the NX and NXT, in March. So that's actually more the premium or high-end product. For our case, the retail pricing is between 6,000-12,000 CNY. But then you look at another product we just launched. It's called U1E, basically upgraded U1, which a few days ago, that retail pricing is around 4,000 CNY. So if you look across the board, we expect our average ASP to roughly remain constant compared with last year. So I'll let Fion comment on the margin part. Yeah. Well, as Yan just mentioned, even though that we upgraded our classic N-series and we're about to launch the new products in the following months with a better price versus the product, but the ASP will stay at a relatively flat level in the domestic products line. Well, in the overseas products line, since we have a high expectation on the e-motorcycle and mopeds recovery in the overseas market, those are almost 3-4 times higher than the kick scooters ASP. So we will expect a slight recovery from the overseas scooters ASP in 2024. Altogether, it will give us a brand-new scooter ASP almost at the same level in this year. Go back to the gross margin for the domestic scooters and the overseas scooters, we will expect a slightly gross margin increase to 1.0-2.0 PPT, 1.0-2.0 PPT altogether, blended with the domestic and the overseas markets. We have already made the cost efficiency, those operational activities in 2023. With the scale of the sales volume increase, we may get the benefit from the gross margin. But we didn't expect a higher gross margin increase because we still consider to share the profit with our dealers and also the overseas market expansion with our partners. That's why we consider the gross margin altogether will only increase to 1.0-2.0 PPT for the whole year. Thank you very much. Thank you very much. My last question is, I'd like to know, do you have any guidance for 2024 on the selling expense ratio? Or to say, will it grow or remain steady comparing with 2023? Well, 2023 is a very special case since we are in the transition of the overseas expansion and also the hurt in the domestic market. That's why the expenses ratio is pretty high. But I think the benchmark for the expenses as percentage of revenue, we could use the benchmark in the second half of 2021, first half of 2022. We will try to bring back the expenses as percentage of revenue, go back to that level, which means at least we will maintain the expenses within 20%-24% since it's a slightly large range. We are still in the transition for the overseas and the domestic markets balance. But the first half of 2022 and second half of 2021 is a benchmark of the expenses ratio. So this is our target for 2024's expenses ratio. Thank you very much. That's all my questions. Thank you for the questions. Once again, to ask questions, please press star 11. One moment for the next question. We have a question from Lyle Michael Simmons from GlobalView SA. Please go ahead. Yeah. Hello, Dr. Li. Yeah. I'd just like to ask a question about the balance sheet in these sort of slightly tough trading conditions. You and your team have done a good job sort of maintaining a good cash level in the balance sheet. Can you just give us a feel for looking forwards this year, particularly as you've explained, you're going to be spending some money on your international expansion and also continuing to launch many new products. Can you just give some feel for what the balance sheet and the cash positions are likely to look like going forwards, please? Well, this is Fion from Niu. I think I just can't give the trends of our balance sheet instead of the exact figures because we are still at the very beginning of 2024. As Yan just mentioned, except for the operating activities and strategies we introduced, on top of that, we may spend higher CapEx on the store opening in domestic markets. I think this is a big non-operating consumption in the domestic strategy. While in the overseas markets, we didn't expect any large CapEx. The only operational activities will happen in 2024 is how we launched our products in our strategic partner stores. So those are purely the operational activities. We reflect it in the operational cash flow. So this is the cash flow parts and the CapEx parts. In the meantime, we didn't expect the huge increase in the receivables or the payables since the business model is very straightforward. And we also didn't expect the higher increase in the inventory as well because right now, we already have enough inventory for the peak season sales in 2024. And after that, we may remain a relatively secured level of the inventory, but we'll not reach to the higher one than 2023. So I think the business model doesn't change. The only thing is that if we want to expand the stores in domestic markets, it will bring up the CapEx. While the current production has already reached 2 million production capacity, and we didn't expect as high as this level of sales volume. So we don't have any further demand on the expansion on our facility. Hope this will address your question. Yeah. Fion, thank you very much. Thank you. That was useful. Thank you for the questions. With that, I'd like to turn the call back to management for closing. All right. Thanks, everyone, 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 today's conference call. Thank you for your participation. See me now. Disconnect your line.