But just to assure you that we are already working very closely with the energy supply companies to manage our cost. Some of these effects, we reported this quarter, actually you should be able to continue to observe them in the fourth quarter and next year as well, especially in some of the efficiency improvement program and the overhead cost reduction, the full year result will only start to show after the one-time kind of write-off. I hope that addressed your question, Dan.
Dan Xu: That’s very clear. Thank you, Ms. Ye.
Operator: All right. Thank you for your question. Our next question comes from the line of Ronald Leung from Bank of America. Please ask your question, Ronald.
Ronald Leung: Hi. Could you hear me?
Operator: Yes, please go ahead.
Ronald Leung: Okay. Please allow me to ask the in English. So, over the past few months there were still COVID outbreak across various cities and provinces in China. Do you see that this would further negatively impact the franchisee sentiment? And if possible could you share the monthly hotel sign-ups over the past few months? Thank you very much.
Hui Jin: Okay. So, yes, to address your question. So basically we agree that the current restructuring due to COVID has continues to be affected our franchisees confidence sentiment. So in terms of the new signings, we are seeing the recent new signings in third quarter and fourth quarter are roughly at 80% compared to a normal period. However, we look at that thing in different ways because the China is big. So we are seeing that quite different development trends if you divided the country into Tier 1, Tier 2 cities and the lower-tier cities. In fact, we are seeing that in the lower-tier cities actually the confidence sentiment impact and COVID impact are much smaller compared to the Tier 1 and Tier 2 cities, because more resurgence of COVID happened in those Tier 1 and Tier 2 cities.
So that’s why the confidence level in — the confidence level for the franchisees in lower-tier cities are relatively better compared to those in the Tier 1 and Tier 2 cities. And I think if you are talking about the full recovery, so we are still need to wait until the further ease of COVID restructuring and the improvement of the economic condition in the upcoming futures. However, for us in terms of our strategy, we will not because of the weak market condition or low confidence level, we will insist on in implementing our strategy in terms of the lower-tier cities’ penetration, as well as further penetrating or increase our market share in the up to mid-scale segment. Thank you.
Ronald Leung: I ask my question in English. So the Southeast market in China is one of the regional markets that the company has put great emphasis on. So, could you share the latest development in the south-based market? And if possible, could you share the mid to long-term development target in the Southeast market of China. Thank you very much.
Hui Jin: Okay. Thank you for your questions. So, in terms of the Southern part of China, yes, it is one of the most important that we are going to further penetrate. In order to achieve this, so we have been making a lot of preparations over the last year. So, the most important thing is that we did a very significant organization restructuring and we moved the intel organizational down to the regions as well as move a lot of the management — middle management team from the Shanghai headquarters to the local market. At the same time, we are also building up a localized based talent pools and trying to make, for example, the localized marketing strategy, localized supply chain management to meet the customer demand in that particular market because those customers demand somewhere different compared to what we have been seeing in Eastern part of China like Shanghai.
