Claire Ji: Your first question, we just discussed a little bit about the oversea market perform in 2022 of things strickened by the historically high price of natural gas and the geopolitics and the expectations in the consumption market in European countries remains subdued and as we used to focus on European markets with comparably simple product lines. So the overseas sales in 2022 has been heavily strickened and decreased over 50%. And as we mentioned earlier, we have enriched our product categories and extended regions like Southeast Asia countries, and hopefully our overseas sales would achieve a recovery. And also, about your question, I believe you asked about the domestic market growth, right? And the domestic business in this quarter decreased about 30% on a year-over-year basis.
And both online and offline channels have been strickened hard by the negative effect of rolling COVID policies. However, we see some optimizations in revenue proportion by products, with a larger percentage of revenue contribute by water purifiers. Our overall gross margin improved more than 3% quarter-over-quarter. Looking forward, we will focus on our core product categories with technological advantages, especially water purifiers and we will double our efforts to optimize distribution channels, both online and offline. In regards of the channels, due to the repeated impact of the epidemic and a number of our offline dealer store has decreased. Along with inventory backup of offline distributors lead to a decrease in the volume of shipment of our offline sales in the past year.
But on the other hand, we have opened more than 100 stores newly in 2022 and most of which are located in the prep decoration marketplace with over 200 square meters store area. We are steadily proceeding our channel extending strategy. And based on the overall situation, our offline scale has steadily increased month over month and offline sales are expected to achieve a growth rate of overall 30% compared to 2022.
Operator: Thank you And ladies and gentlemen, this concludes today’s question-and-answer session. I’d like to turn the conference back over to management for any additional or closing comments.
Claire Ji: Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact us through the contact information on our website or The Piacente Group, the company’s investor relations consultant. Thank you.
Operator: Thank you, everybody. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.
