Operator: Thank you for the questions. [Operator Instructions] We have a question from Michael Simmons from [GlobalView SA] (ph). Please go ahead.
Unidentified Analyst: Hello, Dr. Li. 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 and 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 position is likely to look like going forward, please.
Fion Zhou: Well, this is Fion from Niu. I think I can give the trend 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 the big non-operating consumption in the domestic strategy. Well, in the overseas markets, we didn’t expect any large CapEx impact. 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 were selective in the operational cash flow. So this is the cash flow part and the CapEx part.
In the meantime, we didn’t expect there to be a 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 big season sales in 2024. And after that, we may remain a relatively secured level of the inventory, but will 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 to 2 million production capacity and we didn’t expect as high as this level sales volume. So we don’t have any further demand on the expansion on our facilities.
Hope this will address your question.
Unidentified Analyst: Yes, thank you very much.
Operator: Thank you for the questions. With that, I would like to turn the call back to management for closing.
Yan Li: 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.
Operator: Ladies and gentlemen, that concludes today’s conference call. Thank you for your participation. You may now disconnect your lines.
