Xiaopeng He: [Foreign Language] [interrupted] Thank you for your question. Now I would like to address this by giving you a little bit of background information about our President, Ms. Wang. She comes from [indiscernible] Great Wall, a traditional OEM, and she has been excellent in controlling costs, developing channels and also leading innovative systematic overhaul of the company. So in the first few months that she joined our company, she spent a little time observing what we currently have. We used to have this hybrid channel of having our cell phone stores together with some franchisee stores, but we had total control of the pricing for all of the stores. I mean, all of the channels. And going into Q3, I mean, for the past quarter in Q3, we have already set our future strategy of channel innovation or reform, which will actually cater to different kinds of dynamics or changes coming — going into 2025 to 2026.
We are talking about, for example, significantly more models that we’re going to launch in 2025. And also we take into consideration the future of market competition, market environment and also our future expansion to cover not just Tier 1, Tier 2 cities, but also Tier 3, Tier 4 as well. So in the mid to long term, we aim to have, at least five franchised stores that are capable of not only doing sales, but services as well. And in the mid to long term, we also plan to have a total of at least 1,000 service centers across the country that can help us to provide better services to our customers. And going to Q4, we plan to open 100 new stores that can allow us to expand our sales network, more extensively. And so by the end of 2023, we’re going to have a total of 500 stores of different modes.
And over time, because it takes time for those new stores to build up their capability and experience. So we believe that the time of the Q1 and Q2 next year will be the time when we can actually see a lot of growth in our deliveries in sales and that call also allow us to see growth in deliveries and sales in lower tier cities in China as well, because we are going to build more stores in those areas and regions. I mean, in terms of the pricing control, we will remain very strong in terms of the — the extent of price control and we are going to evaluate the performance of different stores from different aspects, including their NPS, and we can equip them and empower them with a wide range of tools, and we can control the procedures, and we can do a lot more things to maintain our strong control of the service qualities of those stores as well.
Now in terms of the efficiencies of the performance of the stores, I agree with you and we believe that it is very important that we keep improving the overall efficiencies of our stores, because currently we see still a lot of room for growth there, for improvement there. And by 2024, we expect to see a huge uptake in terms of the efficiencies of our store. Thank you.
Ming Hsun Lee: [Foreign Language] So my second question is related to export business. So in October, you also shipped a few thousands of cars to overseas market. So in the future, will you consider to build more direct operated stores or you will rely more on the distributors locally? Then regarding your current product portfolio, do you think you will export all the models overseas or you will select a few models for overseas market? And lastly, do you have any plan for Southeast Asia market?
Brian Gu: Hey, Ming, it’s Brian. Let me address your question. Regarding the international expansion, you’re correct that we currently employ sort of hybrid model in the Nordic countries. We have direct owned stores, as well as our partnership and agents. But going forward, we’re probably going to opt to use a more of a collaborative partnership model using either agents or distributors for specific markets. So that’s probably going to be likely — the mix will shift towards a more partnership oriented model. And in terms of products that for international markets, you saw that we currently have G9 and P7i currently selling in Europe already. We will be launching G6 as a global product next year. So I would say, it’s only the subset of product that we will design and prove for international use, not all our products.
So the products I mentioned are the ones that we currently decided for global markets. And also we have plans for right hand driving models next year as well. For example, by the end of next year, we plan to roll out our first right hand driving model, likely to be based on the G6 model. So with that, we’ll be able to tackle Southeast Asia market. So that will definitely be in our sight. And we’ll be also looking at other right hand driving model markets as well.
Ming Hsun Lee: Yes. Thank you, Brian. I don’t have any questions. Thank you.
Operator: Your next question comes from Tina Hou with Goldman Sachs. Please go ahead.
Tina Hou: [Foreign Language] Thank you very much for your time management. So my first question is regarding our sales volume. So according to our fourth quarter sales volume guidance, it seems that November and the December will be flat versus the October volume. So just wondering, what is the reason here? Are we just being conservative or is there any specific trends that we’ve observed in the industry? And then the second question is regarding gross margin. So management mentioned excluding the impairment loss of G3, the vehicle gross margin was breakeven in third quarter of 2023. So the last time we delivered over 40,000 units of vehicles was in the fourth quarter of 2021. And then back then, the vehicle gross margin was actually 10.9%.
