In order to increase the proportion of environmentally friendly packaging materials being used, we have replaced foam in most of our products with pearl cotton (EPE), a more eco-friendly type of filling, changed the bottle material from ceramic to glass for some popular products, and prioritized cooperation with packaging suppliers that meet national environmental protection requirements. At the same time, distilleries are currently working with suppliers to develop products made of bio-based eco-friendly materials and such products will be launched on a pilot basis in the near future.
To further reduce the excessive packaging of products, we have launched a range of products that are outer-packaging-free, leading the industry's sustainable packaging practice. Among these products is Zhenjiu 2012 True Vintage, a strategically core product that Zhenjiu launched in November 2022. The product inherits the ultra-high-end product positioning from Zhenjiu 2011 True Vintage, while facing consumers with the image of one glass bottle only, its design continues to be packaging-free. In addition, for Lidu's core item 1308, we also offered option for product without redundant external packaging and we moderately lowered its price to encourage consumers to buy product with less packaging materials.
Promoting bottle recycling has always been a challenge in the baijiu industry, and we are determined to pioneer in bottle recycling. We have designed various reuse ideas for some of our products and implementing pilot programs in some stores for which when consumers take empty bottles back to the stores, the stores will reprocess these bottles to make tea cans, vases and other cultural and creative products and return them to consumers for free.
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