Q3 2020 Earnings Call

[music], ladies and gentlemen, mistrusting offerings today's conference or should we choose to begin momentarily until that time airlines will again be flu shots on goal.

Thank you for your fish.

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At this time, all participants are in listen only mode.

After the speakers presentations are will be a question answer session.

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Sounds like to him to conference over to your speaker today, Mr., Sean Zhang IR director of mobility. Thank you. Please go ahead Sir.

Thank you Chris.

For one and thank you for joining us today.

Earnings release was distributed earlier today and is available on the IR website at <unk>, IR mobile apps and inks dot com as well as on the pieces wire services.

Before we begin I like to remind you that this conference call contain forward looking statements within the meaning of section 21 email security exchange I'd like to 34 amended and define in the U.S. Private Securities Litigation Reform Act 1995.

These forward looking statements based upon management occurring I tissues under current market operating conditions and relate to events that involve known or unknown risks and certainties well other factors on a which are difficult to predict a minimum wage beyond the company's control, which may cause to come.

<unk> actual results performance, what you plan to defer maturity from those in a forward looking statements. What are you from issue regarding these and other risks uncertainties. Four factors include the in the company's falling with U.S. Securities actions Commission.

The company it does not take.

Undertake any obligation to update any forward looking statement. That's a result of new information future events, where otherwise.

Except as required under applicable law.

Called today from mogul I'm used to shop, 10, cheap chairman and CEO I mean Hello.

Yep.

Mr. Chen will review the business operation.

And company highlights followed by me school well discuss financials.

Well so both will be available to take a question do you indicated they station.

Now this is my pleasure to introduce our chairman <unk> CEO Mr. Chen. Please go ahead.

She is shopping.

Oh, two or those kinds of <unk> audio content gets on to the usually the offering.

So I went to us it's on what Dennis on the shelf, so launches and what has about one idea of tissue teaching supports our view that see away.

So on the table on lots of all you about sort of goes to the father only Sundarbans Mitchell's Jody.

If you happen to JV downs on a civil you would acquire changing so I want to you, but not all about wins. It was a cell phone seems to be all fine.

He would you like she sometime this summer.

HM support us at home a toll Joe yes on the suggested I wish I was sitting one bullet she sent out a sense, Jim Bob I wish I was.

Walking through the I May you told me a bundle up I can see about that's a fan.

Well, yes, we do find a woman so that's the whole time, it's as you know so important feature that allows you to let you got symbol a yet and some you mentioned your phone tablet centric.

Hello, everyone and thank you for joining us Oh or December quarter earnings call today.

We continue to execute our life, you do broadcasting or L., BB ecommerce strategy and made significant progress during the quarter, which is traditionally China's peak shopping season.

Alright, Lv business has increasingly become a key business driver and maintain strong growth momentum with JV, increasing 99.5% year over year during the quarter its contribution to our or overall GMB also jumped to 53% during the quarter up 14% sequentially.

And more than doubled from the same period last year. The rhetoric wrote up the L. BBB stays as being driven primarily by the enhanced content being created and phones and further bolstered by the consolidating supply some capacity at all we are actively expanding.

It'll be broadcast all weren't per day increased to 3800 hours in December two 2019 from 3400 hours per day in September.

Average LTV Emmy use also increased 133% from a year ago, which I believe reflect that direction we're headed.

Oh, that's our strategy for their take hold and bear more fruit.

Say to watch and see that pay off one I'm not so much at all so how to deal with cheese.

Well my answers your question about the wasn't had forgotten it away more that's something that people not.

Seems on your dog.

Chiming football overcome a sound bites seahawk or pulling out Seehawk CW CESI always show that since you see that means don't go. It seems you know to walk or south and she does the window for the upcoming he said that she is oh, well you should not rely heavily on that yet it's interesting to of course, you. If it helps fill out at the mill.

No it's a chunk Walker.

Things are targeted yelling Chen job you wish on its divorce only goings on Oh, what something come daughter, your shoulder to ballpark and all your sort of goings on in Chicago, where it's a few times I said only showing.

Yes, just want to take ownership of one.

Multi waiting and empowering or kill wells and El Bebe host, it's a key component of our engaging and comprehensive fashion and lifestyle destination, where beauty, while users will create a slowly problem to drive long term sustainable growth.

During the quarter, we continue to strengthen our ability to empower coelce and host.

First we spend it the talent pool of L. BB hosted by recruiting nearly 5000, new whos during the quarter to increase the diversity of fashion lifestyle related content and amplify engagement with a wider demographic of user second our new okay, well incubation and empowering program.

A couple hundred and Mike reaching for plant. So were rolled out in July 2019 already begin beginning to generate Tony result, and drive growth momentum.

We are seeing performance and gross all of our new and meet your host.

Improve rapidly across our platform every that's a result off the if the effective execution of these supporting program.

Third we stress we strengthened the infrastructure will be you.

To empower coelce by adding to sell the new supply chains vendors that cater to several product categories and located across different part of China.

We believe the combination of expanding yeah, we'd be whole talent pool, and the increase our supply chain capacity will create enormous synergies that deepen our competitive advantage and generates dependable growth going forward.

And so well just yeah, yeah, just sort of those tons are well Gee, how sorts of what are you able to be India.

Well its option late shy away from being higher than the problem yet.

A bundle them, that's a war and got some what's your assumption are focusing also on one side you did dotcom.

Greetings to the so to see if it wasn't youngkin daughter, since all of us or foster the nail Josh how your husband, though so that you offensive as you know who don't they got to watch and so why the detail for you to do that she doesn't seem to show I.

I think time, we continue to reach <unk> live streaming ecommerce business by expanding the breadth and depth Oh for product categories price ranges, Oh paradigm, we offer and the brand portfolio.

And the bar and a variety of innovative tools to support the coelce.

We continue to grow the catalog fashion and lifestyle read it is short video content.

That is both created and share by an hour lv be host in order to increase the overall engagement with their followers you're in the off peak hours when they are not broadcasting.

It is critical for improving user conversion rates and driving consumption on our platform.

Well, let's so what else, although sometimes a card towards Ah.

That's a that's what you saw it sounds what's the chair she saw a majority the slim your father shopping, though our Oh goings on.

I'm bail out looking hard that's allowed us to that woman she told us Peter Okay to see the selling and wish him that there wasn't anything that hey, I've got to sort of Calera. He just started he didn't show how much. This is on I hope so yes, its cardio somewhat possibly into common.

And telling them each obsolete it you know, but she's only selfie, though the should show fell in there. So I am looking not going out for you. It's only seen that you thought.

Since the woman so it sounds like I don't see on that she owns a Chicago they got no although woman she going up on yeah, no need gets on the that's what that's all digital so so let's update on the phone and she's she's.

He said that assumed the shopping.

Well much younger girls runs all sister, that's kind of course, you don't going song Sindelfingen Dara platform the shopping so well Miss probably that's one likelihood to cope with yet.

We pioneered the development of the Lifestream E Commerce model, when we began building and interactive platform that connect consumer kill with suppliers long before the live streaming technology was adopted by the wider ecommerce sector.

This is captured in our unique P to K to see model.

Under this model case stands for Coelce, who play a central role in bridging the social IEC social commerce get through there.

<unk> ability to understand influenced and I agree good diverse consumer demand.

Pete stem for all popcorn.

As a provider of consolidated resource.

Including our supply chain capacity.

Lifestream E commerce infrastructure and Codell impairments system.

See stand for our customers, we are committed to empowering killed by leveraging their ability the ability of our supply chain partners in order to serve the diverse demand of our users.

Towards the though she will be well the itching to its on what we're trying to sit here and what is your there's I mean those kinds of the yields on a gen always do you sell knows eminent some sometimes you know some four.

Hi, Joe would assuming that John Walker from door issues and that's all the you will go towards a modest I mean, we shouldn't hold our children.

Overall for the phone slipping to the money and thought on the whole you out you can watch supplement we showed up on <unk>.

Well the Jimmy it's got to jump was your goodies that Johnson.

Cartesian Stonewall coach has yet as I mean, those will actually got a tied up that's also yes, I shall agenda juicing.

Well, what I hear you told US you were kind of JOL, yeah tend to naturally elsewhere and so on an old Gen call on track.

The outbreak of coffee 19 has threatened the house and affected the lives of many families across the globe tens of thousands of frontline medical professional in China and around the globe fighting the virus at the risk of their own life in China, a large number of civil servant volunteers.

Also working tirelessly to stem the outbreak and many citizens have voluntarily quarantined themselves at home for an extended period of time as a part of the nationwide prevention efforts and the fight against corn Corona wires. The people China across the globe are demonstrating strong result.

Oh, I'm, making significant sacrifices I'm extremely proud of their heroic actions and I sincerely wish everyone stay healthy and safe.

It's the eating on the surface at all times, so no so COSA those ones in.

Totally job needs, we'll talk more thoughtful time, yet it's useful way, if I'm not going what im saying Televisa she both would've on food well not yet and that's how you just how hold and all that I'm sorry.

He was going home team Bohn, Hi, ditching, yeah for young John I see it another gain on the year, which has the sold all up and how to use so.

That's what I'll call sort that out of Washington trends, you've got only to the too. So that has where you sit in force you jump the year, what I will comment things don't see as close as.

But what you thought on that eating CGM, probably also at all.

I don't see the option. That's also door bundled Hamlin homework wasn't actually also although on a full time you ship cooking about who also now woman yeah, just due to the GE.

CGT single cell phone and going out the green dot into what a sheldon shouldn't affording us from but.

The epidemic has also disrupted the what a wide where we're rarity of consumer related industries.

That's a company that serves the majority of female oriented consumer base with a deep rooted supply chain spread across China, we have not being immune to the impact from the offering.

We expect our near term performers or will be impacted due to the temporary suspension of operations that factories large wholesale markets and delivery services in response to a rapidly changing economic environment, we implemented several measures in collaboration with our Cana wells.

And business partners to mitigate the impact of the wires operate as well as precision ourself to take advantage of the opportunity to have a race in front, we capitalize on the growing realized vision of the importance of E commerce, especially a live streaming E commerce play in today's economic.

Expanded pool brand partners, we work with by adding over 500, new ones to our supply chain.

We made us a decision to prioritize cooperation with Brent partners, who sells were mostly impacted by the outbreak.

Further demonstrating the unique value proposition and differentiated solution our platform can offer through the live video broadcast didn't come sale. We're also taking advantage of the opportunity to further optimize the system and processes were used to empower coelce and suppliers and are benefiting from the enhanced.

Extreme cost streamlining of our cost structure.

What's holding you Kings County.

Well, what the IP license illness suddenly.

We need to that so I see always have a JV tools and the Cook will you started off the unfortunately dockets units a month or maybe a quick and I've been gotcha gotcha.

Now turning them into whereby.

We believe the outbreak will eventually be contained and the business will resume quickly.

The word crisis or we see in Chinese contains the tractor Oh post danger and opportunity.

Trials and tribulations create opportunity we firmly believe that to operate will create an opportunity for us to stress in the impact of our carry all centered live video broadcast business has on the growth of.

E Commerce sector in China, we remain committed to our mission and creating long term sustainable growth for our shareholder.

I said that showing how does not go more places on SEDAR tells from too.

Now I'll turn the call to Helen to Golar will go over to financial details.

Thank you sharp. Thank you again, everyone for joining the call It Tonight.

I will walk you through all with the quarter fiscal year 2020 financials, a we believe year over year comparison is the best way to review our performance so unless otherwise stated what percentage changes that I'm going to give you are on that basis.

So let's review the financials overall continue to generate pretty steady GMB growth over the past quarter, a with the can be increasing 8% compared to the same given last year.

Our lbd business in particular continue to grow significantly we associate TMB for the quarter.

Well, you're 2020, increasing by 99.5% year over year to RMB 3.4 billion.

LP LTB business continues to grow as portion of total GMI accounting for 53% sort of quarter up 14% sequentially.

And is growing strongly as far associate condition revenues, which I think which has increased significantly Eddy county for a larger portion of the overall commission revenue.

Going forward it will continue generating strong growth momentum.

Primary filing strategy and to continue upgrading our mentioned structure on ocotlan.

The average ATP.

And they use who could be attributable catching a quarter increased the by a 132.7% year over year active buyers of the LDP business in the past 12 month period, ending December 31st 19, 2020, Nike by a 32.4% [noise].

Now, let's turn to revenue total revenue came in at a RMB 216.5.

A decrease of 20 point.

6.6% year over year. This was primary due to a 19.6% year over year decreasing a commission that and 44% Oh, roughly 45% year over year decrease in a market has asked me.

The commission revenue decreased due to RMB 141.2 million, mainly driven by decreasing the TMB and also the conditions any of that made it through our marketplace business.

While our rapidly in the loved begins all casting business has been continued to grow strongly.

Offsetting part of your forward in the revenue.

Can you ask me in the marketplace.

Marketing service revenue, which is mainly genuine from our marketplace.

Hi unit decreased by 45% to RMB 72.5 million.

Which is primarily due to decreased image heavy marketplace.

As the company focusing resources on developing LDP business and accelerating the optimization of merchant structure on a marketplace, which began.

If you can hop over calendar year 29 [noise].

Other revenue decreased by 7.3% to R&D Vicki.

<unk>.

Mainly due to a decreasing the online go back to sell well the revenue from financing solution to our consumers continue to increase.

Next I will walk you through our major Clinton expense.

First of all our cost of Red meat was relatively flat.

In comparison to the same period last year it get decreased marginally by RMB 2.1 million to RMB not Eightpointthree Millie from 100 point Fourmillion. Thank you last year.

This was primarily due to decrease in a payment handling cost and a decrease in a cost associated with lower online direct to sell which was offset.

Partially offset by an increase in IP related expenses associated with the LTV.

Selling and marketing.

This expense increased by 2.2% to RMB 209.3 million from 2.2 hundred 4.7, many understand PEO last year.

This was primarily due to be consistent spending on marketing any you the acquisition channels.

<unk> was partially offset by a decrease in a payroll costs.

Research and development expenses decreased by 42.3% to RMB 32 million.

A 50 seat at 55 million last year.

The primarily as a result of the headcount optimization.

General and administrative expenses decreased by 16.

Thanks to RMB 40.7 million, primarily due to a decrease cost [noise].

Amortization of intangible asset increased by 54 cents to RMB 103 million from.

Our 50 67 million innocent here last year.

Mainly due to any increase any amortization of intangible assets.

Flooded ACA, we've got a sufficient cooperation agreements that more entered.

Into with Tencent, which became effective from April 29.

Loss from operation was RMB, one point Sixmillion, a 1.6 billion and a net loss attributable to more who ordinary shareholders was RMB one point.

100.

Went out and 634.5 million compared to a network RMB 42.2 million Anderson together.

Fiscal year 29.

This was primarily attributed to a goodwill impairment.

As a result of of weaker than expected synergies by acquisition of making sure.

February 2016.

The show for in the realized synergies was in part due to the repositioning of the company that strategy towards building a Q I will give us into active in common model as well as an increasing competitive marketing environment.

Oh, Great Cobot 19, the adjusted EBITDA was negative RMB 84.1 million compared to a negative 5.3 million every last year.

Adjusted net loss was down 19 point 92.9 million.

We continue we'll continue to closely monitor the evolving situation in response to the outbreak of a complete 19.

As Chuck mentioned earlier this challenging market environment may impact our performance in the news.

That said.

We remain confident that in the longer term growth across that upper business.

I firmly believe that the algorithms will create more opportunity.

I think the social English football I'll kill else. Thanks Ltd business.

Has on a gross income is that's where we will be slightly position to capitalize that.

With that we will open to QM name.

Thank you. That's this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just moments compiled acuity roster.

Your first question comes from Charlie Chan of China Renaissance.

One is open.

Hi, Scott.

Sean Wow I know John when you start you're sure unless I'm wondering how does your teaching jakafi and we shop you got trunk.

No assurance about peak lunch you originally sure. She is a thing eventuality nationalized she is not yet Ami and sequential accomplish all now how should pick up that you wanted to get us the Gen. James.

You should take a worry a little mill you choose from yet no no the which all ages Zika.

Wait for the talk to you guys John.

Well she would you Josh hopefully quick you even tried to watch and wait for.

Hi, good your suggestions as to whether chicken.

It should be document on I know me not to digest. It says you can see shots on your real fashion and what the dosages.

We shall not long ago, which appeals.

Well done a little easier interestingly, it's Josh.

No I can daughter, John Regazzi that's.

Sure.

Oh.

Maybe let me your first translate the question for listeners sake Oh, Okay. The first question is regarding the impact from the Koby, 19, which which area you see the most impact or is it honestly on supply side or the might video broadcast host a winnable hours.

For the logistic second question is.

When do you expect your pieces will recover to normal state. The third question is do you see a decrease in you pool of live video broadcast host well increased due to you know people stay for extended period of time at home.

Yes.

She is it wouldn't be Oh, Oh with CLSA.

Each also contain SUNS other holds and leaving us tons either.

Yes on costs as Joel capacity always here.

She is what are your funds.

Arguably Sunday pitch, our dot not the ER.

To see that you watch on that towards hit us with one or two we also took also tightened selling the good either game than than just to come on mailback off without the does it come to us.

So you do mailed out how kind of walk to the cancellation costs.

Oh Gee, that's when you'll see a darn ounces.

Thought at the leading cancer Society to.

Going sounds a hole in Italy on the heels Hong Kong.

Good losses on how to milk hematoma, just to put on when they come on so you do go for us on the Obama Nadal.

Hello.

Dumb, which has its own calling us so I think our job in front as you go through both those things. So hopefully that will come in as you go on daughter Teavana No doubt also though going designs in cost of full goal. So you come the sans-culottes another <unk> co your cost savings.

That's a motion that episode algae, though the holdings.

Dog credit or we will have poonam, so nothing thats, how it should only be up.

What's your thought on tend to Ken's idea of what we're going to freeze on a year ago credits are good. She did a genuine credits. So that he goes through the way you see the has sort of mine you sound dealer gold as Youve seen Sheena Honda you'll pull from the shelf leads a your woman that's helping to the publishing and senior shima.

Youre pool funds Union senior tranche of is Oh.

Well again dicing, Saudi that's why when they're somewhat as you go to.

Criteria.

A quick way so you've got.

Andrew how sweet fees here. So this is on that for the synergies on the himself has to be Jami show.

Or.

So not typically each on now.

That's helpful. Deleverage dollar you want to 18 highly valued somebody would be dot harder.

Youre hundred production hi, teaching.

Phone sit on trends easy Sheila.

Yeah.

Kevin has had an easy or something to the goes to show them that than the trends either because Hong Kong kind of your phone set up a whole Eugene body that movie opting not to go with the you'll get a true that charge on our sons do us oncologists again, so you among couldn't side.

With the sale of US dollar once again I'll quickly.

So I think challenge, we also think going for both for that division. So.

Okay for the first question, yes, there is no.

Impact to our business. The news came out in late January and we see the most impact in February initially or early February our live streaming whos couldn't can come back to their studio.

They are required there were required to quarantined himself at home.

Later on when our whole start to come back.

Well, we find areas they are bottleneck as supply side.

Mainly due to the extended holiday has.

Basically postponed the resumption of work affect tree and our scale up on markets as of now in early March most of our host ER has come back to work and most of the factory has you assume working now but the delivery services.

Become a challenge due to.

First of all some song are somehow customer afraid of.

The safety issue as packaged been today, we're from a other cities also.

There is a limitation on the delivery services as most of the neighborhood.

Our kinda Diederik guide to keep their parsow outside the gate Oh after the main gate.

So.

But it's the same situation has also impacted brand and suppliers and many of the brands and offline supplier have basically I realized the spring collection. The sales of spring collection will be heavily impacted so they move on from Uh Huh.

During the spring collection to produce summer and autumn collection now so we do see a shortage of supply of spring collection. This moment.

The whole bunch of the equivalent wrong.

So.

So on the.

Okay bordering volumes.

Support Gen, though for your for the tissue Paul was on these on the cost I think thats what were the.

Calmness Fuji Vogel.

In the two one as it were one dollar that also with the last one on holiday.

On the sign up with Mobileye those home to both of.

Those are the south without which turns into other areas.

Sort of caught.

Only solid corruption pipe in order to offer for the Tom.

For the team did I sit down and the engine that you're going I see some safety dealt within loved about when it'll be all went into acidizing towable licensee odour sourcing I think a function.

So you will see.

In golf was that just highlight the dynastage any methods on his offer we forgot.

Okay regarding recovery our platform were seeing the data were seeing shows that the are you and also active user engagement covered pretty well actually we are seeing very good data coming regarding the user engagement.

So.

That's all the demand side, but the challenge remains on the supply side basically we are still experience on bottleneck on the offline suppliers and also brand partners I think in China. The situation is largely has has been largely contained.

Although there is into the operate.

Abroad is evolving situation, but in China distribution has been largely contain and we expect business will go back to normal could you pretty quickly.

Charlie.

When he deferral.

I think it doesn't make a as to what does your conventional it's Jeff you get your solution that you should.

Okay. So that's why hasn't the dolan dealer fill a teenager without thoughts as to how the kind of what are some call was there has to be dealt with the mail come down you'll see and they all come though.

I'll pass it ends up millennials.

Well I don't see now has the so what I don't see fit our solar lastly thing, but I hope you guys can do so.

Similar to where the Doctor father, Mississippi job going the other thing since the though you do so.

Fortunately for US I think a few too okay two stages over them wanting anticipated cater to go for them to other services with on Monday the.

Goal for two with a much accreted into how the assumptions.

As I said that it was a horse on into sort of.

Sucking hooking, how does it thats analysis.

Those of you got doubtlessly, yes, yes, it'll come down.

Condolences.

Hi, So what happens obviously.

Don't you sound like assortment.

Just two border to qualify youre pushing on those someday be job.

Something Oklahoma, Oh, Thats, a quarter dealers I mean, it's on that to go from here because our goal.

Okay, basically were seeing I'm pretty encouraging develop and on demand and also to supply offer live video broadcast host a we're seeing pretty stable number of whos coming back to work, so basically ARPU up like streaming holes.

Has not reduced.

We're not seeing a a rapid growth in the pool of like streaming Whos, a mainly due to again as I said on the supply side, we are seeing limited.

No I trust supply from brands and suppliers.

Okay. Okay.

Okay.

Yes. Thank you next question.

Okay.

As a reminder, if you would like to ask a question Press Star then the number one on your telephone keypad.

Again, if you would like to ask your question Press Star then the number one on your telephone keypad.

Your next question comes from Charlie Chan, China Renaissance Your line is open.

And no matter, how that Laura let's say how did you guys can you know when do you just so we're kinda you'll get your social do you get done about say you can see what do you answered your talent and otherwise you're young <unk>.

Yes, Teachable Yell would you say you guys just wanted to us reaching Yahoo shutdown you'd be at some time no just Johnson <unk> Johnson synthetic lets you bought a geo Carter young who have no shinbone pool light and the got she's also then I'll, let you sound like you got.

What are some nice you follow that you thought you can see no we're not going either but I don't drug once you're doing a subject.

She knows you got a good why did you quite young who can Hello, Yeah. What did you guys. You include the.

Just watching.

Oh, Yeah, what did we don't go Crazy Yeah LG. She knows exactly what did you know what you're getting especially with your question Youre kind of competing send you the yakutia I should say shutdown, but just in equities.

The first question is a were seeing like video broadcast May you gross pretty stable and sometimes the overall user decreased so we are I wonder where the light video broadcast a user came from secondly, how many you see you are.

Our used or other user prior traditional marketplace.

Has converted to like video broadcast users.

Deal and he's just doing so sort of almost hit US alliance, a subordinated where youre also listens our audience on the.

Now than they acquired these oh, yes, all year, which was a ceiling.

Figure deal.

Yes, all over the long haul.

So voice quality lessons on that she's all the.

We also.

That's the devices.

So what will the because oh, so the ocean high.

Yes, I don't know working has also been seen could be that's all other like Oh, yes.

So that leads you to because I've started the the shaza.

Single B piece I don't know do so.

So you could see those just to say soundwaves, our canola units and go deeper.

But going out and so you think.

I think that should other Porsche doing what I see your initiatives such as it goes on its own Jim why.

Hello.

Yes, the geology.

Autoform.

Ontology, Oklahoma in weight.

Could I think the south that as a tablet DHL much focus on but that these are things on the division. So.

Hello. This is behind US we also led to human ZIP codes your coverage from boil, what's the volkow for the being up.

So oh pools.

The other fit our house, so your comedy, though Cobiz homeboy.

For the Chicago.

Okay, basically we have for a major user acquisition channels.

The first one is obviously the majors social platforms. The second one is the main app stores.

The third one which now is being impacted is the OTV.

The only entertainment such as OTV and that's why the offline marketing.

Channels and Thirtys up no basically is the our user word of mouth referral. Those are the four main China will acquire all users for LPV business.

A whole Glenn Savoy orders for costing us so much more chances for your forward. So what's on your willingness on coal.

Got it.

So youre. So you don't top eligible copel, we hold how those either.

How the seeing ways of profile facility costs money available.

The other says that has begun yet is obviously phosphate held out of your huh.

Absolutely also done doses, so baby each and I think a law you I'll tell you still on the face on change your they about.

Got it so machine cold articulates the volume and that you again.

Okay now the ever be users penetration return our total uses both only 30%.

But the.

There are metrics are much better than our legacy marketplace. Users. For example, ARPU is multiple times four five times of our.

Non l. BB users and also the repeat rates much higher.

Okay.

Yes, not near the high because then you go once you just so did I see Ganguly go hang it yes, I'll just give a clean you didn't come to some doesn't kind algae.

So what younger people, who don't I see no well, yes, no real good mostly on the other two EG.

Just to do you want to trend do you guys.

Joe you won't be done well, yes that is you want to somebody else will not just for my the does it have to 4000 Giga.

So they can you also want me to function now when a function that you ship Shin Kori Nielsen just got unfortunately, the border with seasons, yet you guys jono procedures, yet patient nothing thats, how nice wages are going to subsidize Jackie can shoot that shouldn't I, just which on a constant. So that you guys do tend to extend that should the passenger.

Oh basically my question is when you see change what country on the supply side, but sometimes.

Youre, we'd be hosts coming back and they are engaging with their fans are you see.

Do we expect to see a decreasing kind of user engagement in longer term. If you continue to have a supply side constraint.

So just what college I'll do going Formula Cfos in Cincinnati, though.

Just because the cells are somehow to port Neal numbers. However, this will help me on the material that was what may.

Hi, Bill Sunbelt so.

Thank you please our easier.

Definitely a goal it all known lap all since before the end as you go for your dollar on element or see the us against you. So close into a suggested changes you're going to us so fortunately.

It's only others Wamsi are well known integration Lady mentioned pause on par launching the Tigo time, King how bobo push a lot, but what hunter household.

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Well they will give you also see the they opened in 2000 salobo such as South Asia catches on that.

17, Sony examples so mainly led to sulfate helps them enough Shanghai.

No.

I just had a don't cause or something else Sadara hotdog. Okay lets you pull how that's all sort of ongoing kutner do sort how that these of course I got it was a fabless shell that as a cultural that these are sold off issue.

We're seeing.

Some of Thats, an aging the themes for the Intelsat solely tells us that leaves about that's a thought out of production had shes Hum, though put us on comparable forward that things are going on Monday that they are put on a dollar conscious.

For parser youre or maybe if I'm not even some of them a little bit one dollar. Please the first you though they are you got about really made a woman she stays home. So thats all of you sell more Joseph Reagor bone. So good assumption pipeline, what's the fall I think outdoor she also.

I'll pause should you will see you got about really meant that seeing a formula machines sold or face on apart anything youre talking about Goshen Goma Tei. So just wanted to go consortiums welcome those avoiding it has offered to see how it goes on for the full doesn't shares.

These are harder to slower been anticipating I know youre in the San Diego you also just.

Fortunately quote and quote you always them a single saw wellness.

Yup.

That anyone butterball onto the household as a whole cannot wait until that combines here does anything they're getting caught out of what's your for.

We can kind of always helpful. Now with them are going to do a construction labor disruption hi off hours have led to what I can tell us initial phase one studies how that job.

Doing well.

Well, it's a zones onto city Hall.

Okay. When we are seeing just a constraint on the supply side, we're not saying Theres no supply just not abundant supply. So we do have.

Quite a lot of supply to offer to okay well.

We mainly implemented to stress in the past one half month number wise expand our product categories, especially cosmetics discipline cosmetic product has not been impacted heavily as apparel. So were seeing a contribution farleigh cosmetic sell has expanded second we are.

We have a very successfully expand our brand portfolio. As you guys know we are up brands or we're not our basic core supply in the past right now to admit that make really impacted the traditional apparel brand in China. When they have very limited often sell so they have a lot of inventory.

So actually it's opportunity for us to kind of penetrate into the brand a live streaming ecommerce still so our key study did this year.

His expand our brand portfolio.

Expand our price ranges and.

We spend our CAD product categories.

In the past one half months, we have work with more than 500 or new brand partners. So.

In the past Lv be host there were some.

We're reluctant to work with brand due to the higher price range, but now this is opportunity because of the limited supply from the traditional.

Basically factory supply side.

I have to rely on us more you order to work with Brent partner to get sufficient supply for the shows.

Hello.

Thank you.

Is it.

Again, if you would like to ask a question Press Star then the number one on your telephone pizza.

There are no further questions I will now return the call to Distrusting Mr., Sean Zhang.

Finally come true.

Thank you, Chris and thank everyone for joining the call today.

Any further questions or comments, please don't hesitate to reach out to anyone of us here and Magoo. This concludes the call today.

Ladies and gentlemen, this concludes todays conference call. Thank you for participating you may now disconnect.

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