Q4 2019 Earnings Call
Angry and you know everyone and welcome to vomit technology calling Metate earnings conference call for the fourth quarter and full-year 2019. As a reminder. This conference is being recorded a company's financial and operating results were issued in the press release earlier today and the Tuesday online. You can download earnings, press release and sign up for the company's email distribution visiting the IR section of the company's website at the internet mystery shopping of the board of directors and chief executive officer. The Chief Financial Officer. The company's management will begin with prepared remarks and the call Will conclude with a decision yet. We continue these now today is the statements made under the Safe Harbor provisions of the US private Securities litigation Reform Act of 1995. What was the name?
Involving hamburger and answer contains as long as the actual results may be material or different from the views expressed today for the information regarding these in June and answered into is included in accounting is registration statement for my one and other filings and started with U.S. Securities and Exchange Commission. The company does know the same location any forward-looking statements except as required by law, please press release in this conference call also includes descriptions of them all this information as well as on him a bath and body come out there to turn the call over to vomit on there and see our mystery shopping channel deliver his remarks. Yep.
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Thank you shopping. This is shown by me. See if our our quickly translate Mister Jones remarks for providing an operational update and discuss our financial performance for the fourth quarter of 2019 and Outlook. Hello, everyone. Thank you for joining our fourth quarter and for year 2019 earnings conference call 2019 was another extraordinary year for Byron Georgia business went from strength-to-strength with robust growth across all product segments successful Innovation new product development increase in brand recognition larger market share and deeper Channel penetration business may continue to be strong with fourth-quarter and full-year 2019 revenues increasing by 82.2% and 81.5% year-over-year respectively, exceedingly higher end of our previous guidance on a non-gaap. Net income in the fourth quarter and full-year 2019 increased by 54.6% and 85.2% year-over-year respectively. We recorded our best ever double eleven sales performer.
In 2019 we got on.
My channels more than doubling respective tme DMV in the fourth quarter on a year-over-year basis performance was strong across our core online channels including European JDT more often as well. As our own e-commerce platform. You need our show me branded products business also performed extremely well with water purifiers things from volume growth and new products such as sleeping robots range of these folks and Blended or contributing meaningfully to the year-over-year growth of our only vehicle you need to branch has has come a long way since Inception only issue short years ago from our recent successes. We have well and truly established ourselves as a credible name and a leader in the IT industry in China, you know continuing to reap the benefits about increased brand visibility schedule and channel penetration. We are also making efforts towards streamlining and optimizing SK use within each of our existing product categories while further deepening and broadening our sales channels across both on log.
An offline networks investment in research and development and innovation has always been fundamental fundamental to our success as a testament to our leading R&D capabilities, but only was named as wife to choose of iot in 36 chaos list of cutting-edge technology and high-growth Enterprises in November. In addition. We were listed as one of the national intellectual property demonstration Enterprises in 2005, as of the end of 2019. We had registered over 1300 patents domestically with many of our products containing Chinese high-tech products certifications as part of our 5 g e r a t strategy we continue to introduce to the market many new Innovative and cutting-edge product lines as well as new product categories throughout 2019 and into twenty twenty including a premium cooking brand that was launched in late 2019 in terms of 5G capabilities. We rolled out our state-of-the-art hybrid networking five gcp product in October.
To Qualcomm s e x x 5 G microchip featuring one-touch connectivity and the ability to connect over 256 iot products providing groundbreaking seamless for Home wireless technology to Consumers. We have also been dedicated to developing next-generation wifi-enabled products and Technologies integrating Wi-Fi Bluetooth and other protocols. Mm. I truly holistic connectivity and user experiences across iot products in the home environment. We're excited and look forward to sharing these products with the market in the coming months over are introduced. In fact, we announced the company had entered into a memorandum of understanding with the local government insurance and don't problems for the development of Bio me iot Technology Park a comprehensive high tech Industrial campus is connected to be completed in two phases over and up to ten year. The first phase of the expected to include the company's multi-functional headquarters, including a product experience Center R&D Center smart manufacturing job.
And centralized hub for sales and customer customer service functions. The second is expected to focus on and accommodate additional facilities for the company's iot product serving as a focal point for life is extended supply chain type of
Villages while attracting more upstream and downstream corporate and business opportunities this initiative demonstrates our commitment to strengthening our iot supply chain resources and provides necessary Foundation to support the money factoring in R&D capabilities. We will need in order to thrive in the upcoming 5G and I owe Tiara this technology park will equip us with the necessary resources to capture the increasing number of opportunities before us going forward, as you can see our company had significant positive momentum heading into twenty-twenty. However, the recent covid-19 outbreak has created unique Global and industry-wide challenges impacting Supply chains Logistics sales channels as well as overall consumer sentiment and purchasing Behavior based on the overall industry data domestic retail sales of many home appliances products that seem insignificant double-digit declines in the first two months of the year with offline channel has been particularly hard hit.
Having said that we together with our suppliers and customers have gradually resumed normal operations since mid-February and have seen noticeable improvements going into much both from a supply and demand for me. Thank you. It is also worth noting that we currently have minimal exposure to International export markets and have internet might have minimal exposure to International suppliers accordingly. We do not see any means of direct impacts from the conclave in situation outside of China.
Have the last we believe our industry as well as the broader economy are still facing significant uncertainties of the near to medium-term that will be difficult to quantify. Although the situation may currently be improving China. The recent escalation globally is likely to continue to depress overall consumer confidence and spending patterns in the domestic Market in the monster come we're there for utilizing this time to further enhance cooperation agency and Implement stringent cost control measures across all areas of our business in addition to our product development and sales and marketing efforts at the start of the year. We announced our only twenty-three 511 strategic objective with with our mission to become a leading large-scale technology Enterprise. We are shaping our corporate culture and mapping out our plans to achieve strong and sustainable growth over the next ten years. Well fully confident that our strong business fundamentals were boss Financial Resources in a strategic direction will enable us to power through this unprecedented. And Achieve our long-term goals
Finally enlightened prevailing market conditions. We announced today that our board of directors had approved a share repurchase program. The company is authorized to repurchase up to ten million dollars off its cost a ordinary shares in the form of American depository shows over the next twelve months. The share repurchase program reflects our confidence in our business Outlook and demonstrates our commitment to maximize long-term shareholder value how healthy balance sheet and strong cash flow generating ability provides us with ample flexibility to effectively Implement their share repurchase program while continuing to execute wage growth strategies. So that concludes our Founders comments. I will now prepare and provide an operational update and discuss a financial performance for the fourth quarter and four year 2019 together with our Outlook in the interests of time or not going to into too much detail on the historical operational update in statistics, which you can see from our earnings release and they can log
Which continued to strengthen in the fourth quarter? So let me move on to provide a review of our fourth quarter results as well as output. So in the in the fourth quarter our business momentum continued to be strong and we again delivered to her boss took my
I'm going to exceeding the high-end about previous sightings. In addition. We continue to achieve healthy levels of bottom-line growth with very strong cash flow and balance sheet positions as shopping discussed net revenues increased by 82.2% to 1.7 billion RMB from 955.7 million RMB for the fourth quarter of 2018 primarily due to a successful rollout and significant increase in sales or both are any branded on xiaomi brand new products revenues from iot enabled Smart Home Products increased by 75.1% to 1.649 billion R&B from 776 from 770.6 million MB for the fourth quarter of 2018 within this category revenues from smart water purification systems increased by 35.1% or 385.9 million RMB to 285.7 million MB for the fourth quarter of the fourth quarter of 2018.
You squirt was primarily driven by the introduction rollout of new series of logic capacity water purified products together with an overall increase in sales volumes revenues from Smart Kitchen products increased by 64.5% to 432.8 million GB from 263.1 million MB for the fourth quarter of 2018 because it was primarily driven by increases in sales volumes of took me Barney grinding refrigerator products together with the rollout of new show me brand new products such as range hoods and gas stoves revenues from other smart products increased by 139.4% wage increase by one of the 39.4% to 530.9 million and then from 221.8 million MB for the fourth quarter of 2018. The rapid course is primarily damage by the rollout of newsham you branded Super Robot products as well as growth in sales volumes of by any brand of water heaters and smart device.
So, please note that from the fourth quarter of 2020 onwards the company will present revenues from Smart Kitchen products and other smart categories together in one combined category long as these categories have broadly similar margin profiles and given the company places strategic emphasis on our product portfolio as a whole. We believe the category should be viewed at least across provides a more appropriate understanding about overall performance the revenues from consumable products increased by 125.6% to ninety four point, six million R&B from 41.9 million MB for the fourth quarter of 2018 primarily due to increase sales volumes of the company's water purifier filter products revenues from value-added business has increased by 107.7% to 297.4 million MB from 143.2 million MB for the fourth quarter of 2018 primarily due to New Jersey.
Introduction is together with increased demand for the company small appliances products cost of revenues increased by 100% to 1.395 billion MB from 696.4 million MB for the fourth quarter of 2018. He increases relatively in line with the rapid growth of net revenues chorus profit increased by 34.1% to 256.6 million RMB from 258.4 million MB for the fourth quarter of 2018. Gross margin was approximately 20% compared to 23% for the fourth quarter of 2018. The decrease in gross margin is primarily due to shifts in the company's business and product mix together with additional promotional activities conducted during online shopping Festival during the fourth quarter total operating expenses increased by 37.7% from 273.6 million GB from 100 to 198.6 million.
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Teach primarily due to the rapid growth of the company's business R&D expenses increased by 57% to 65.6 million MB from 41.8 million MB for the fourth quarter of 2015 primarily due to an increase in personal expenses and pythons related expenses selling and marketing expenses increased by 36.7% to 185.3 million MB from one of them 5.5 million MB for the fourth quarter 2018 primarily due to the increase in logistics expenses as well as a result of the company's business quote G&A expenses were twenty two point six million compared to a twenty one point three million R&B for the fourth quarter. I'm 18. So a total operating expenses as a percentage of sales decreased to 15.7% for the fourth quarter of 2019 as compared to 20.8% for the fourth quarter of 2018 as we continue to enjoy economies of scale and greater operating efficiencies on a non-gaap basis which includes the Dead
Share-based compensation excludes the impact of share-based compensation expenses total operating expenses as a percentage of sales decreased to fifty 15.1% and the same quarter of 2019 compared to 19.7% in the fourth quarter of 2018. Now income was 90.2 Million MB and increased 64.4% from 54.9 million months fourth quarter of 2018. Non-gaap net income which includes the impact of share-based compensation expenses was 100.7 million MB an increase of 54.6% from 65.1 million down for the fourth quarter 2018. Additionally our balance sheet remained extremely strong as of December Thirty One two thousand and nineteen we had cash and cash equivalents of nine hundred seventy two point five million be restricted cash of 30.6 million be short-term deposits of sixty million be in short-term Investments of 316.2 million. Ninety collectively as such liquid assets, ma'am.
1.3 billion MB and we had minimum tax for the fourth quarter of 2019 net cash provided by operating activities was 300.2 Million MB or reflection about strength strong cash flow generating capabilities over the course of the year and I won't go into detail of four year 2019 results as they can be reviewed in detail a email earning towards now, let's turn to our Outlook. So while we had extremely strong momentum heading into 2020 covid-19 has indeed has had an adverse impact on your role industry and sector as well as our business in the first quarter of 2020. Not only has there been an impact on on the supply in terms of manufacturing capacity and Logistics jobs. Also on the demand side in terms of retail Channel operations consumer sentiment and customer purchasing Behavior actually mentioned, we believe our industry as well as the broader economy in China as wage.
School bully are still facing significant challenges and uncertainties over the near to medium-term that will be difficult to quantify in light of these factors for the first quarter of 2020. The company expects revenues to be approximately flat as compared to the first quarter of 2019 with the introduction and ramp up with new products offsetting the negative impact of adverse macro and Industry conditions in the office in 1/4 in terms of profitability while we expect to remain profitable in the first quarter. We do expect to see a decline in net profit and profit margin as compared to the last quarter of 2019 mainly as a result of a high fixed-cost base due to the overall growth of our business as well as shifting margin profiles of certain of our products.
in more detail
As a result of more aggressive promotional campaigns to mitigate the impact of addressing industry conditions together with Channel destocking initiative During the period in the lower than expected consumer demands work at least in large part due to the covid-19 situation. We expect to experience a decline in the ASP gross profit margins and revenue contribution from water purifier products in the first quarter of 2020 as compared to the first quarter as well as the fourth quarter of 2019. Nevertheless, we expect our overall company gross margin in the first quarter of 2020 to be relatively similar to that of the fourth quarter of 2019. We've positive sequential shifts in product mix and other products margin profiles Lodge upsetting the impact of the declining water purifier margins. We also have a number of initiatives under under way with regards to a water purifier business including various cost control measures together wage.
The launch of new high-capacity products as well as next-generation products require ESPN margins like to mitigate the above-mentioned impact. This looks the Outlook page of fact is the current market conditions and reflects the company's current and preliminary estimates of market and operating conditions and cost of demand which are all subject to change. So often that concludes our prepared remarks will now open the call for Q&A operator, please go ahead.
We will now begin the question-and-answer session to ask a question. You may press * then 1 on your telephone keypad. If you were using a speaker phone, please pick up your handset before pressing the keys. If at anytime your question has been addressed and you would like to withdraw your question, please press * then two months for the benefit of all participants on today's call. If you wish to ask your question to the company's Management in Chinese, please immediately repeat your question in the office at this time. We will pause momentarily to assemble our roster.
The first question comes from lilli and loo of Morgan Stanley, please. Go ahead.
Turn down your volume a 2018 Dodge. You sure you can find them to show women's wage. I conjure things you just the ego and the our government should see to make sure we should merge a good phone number.
So it's either to go down on the 7th. I have two questions.
First is about, 19th impact any run-rate update in terms of how things improve from February January, June March April, press and the impact by 10:00 by product categories, and the second question is about the gross margin found in fourth-quarter what exactly caused the decline from a promotion from a part of mix? Can you give a bit more details? Thank you.
Yep, thanks movie and let me address your your questions. So in terms of the covid-19 impact as we discussed, right you would have seen in a lot of the ending of data. The home appliance industry has been quite materially affected by the the current situation with with with offline channels being particularly high. So often especially in February of many products in the offline Channel with things like 70-80 even ninety percent declines, you know flying channels, um with uh with with Smith declined but let's do a challenging condition being offline channels, you know online channels. I think the trend has definitely been improving hasn't heading into March, um, especially in the last week or so. We actually seen a good uptick particularly in the online channels both from an industry perspective as well as storm out or intersecting. So I think in summary in terms of the channel performs,
Early, January performance is actually quite strong as you would have seen, you know, fourth-quarter results, but momentum was very strong. And then the the effects of both the early Chinese New Year as well as obviously the covid-19 situation towards the the the latter half of the January resulted in quite sneaky clients, um for around a month or foot long as we mentioned on the call, um, in terms of the supply chain, this started gradually ramping up towards the second half of February and is essentially close to to full capacity email similarly with Logistics quite a lot of challenges, um in in February biking is essentially nearly back to to normal now on the same side as mentioned in in terms of sales channels off line is still continuing to be challenged as compared to to last year. We would shift in consumer purchasing behaviors as wage.
The obvious restrictions on movement of the past couple of months, but similarly as the stores begin to open and and consumers are going back home shopping malls and retail stores. We have seen that a good uptrend as compared to February but still challenging offline conditions having into March, uh, uh over the past several weeks off now in terms of our Outlook, I think it's still uh too early to to see when we would expect there a complete windbound name is mr. Chen mentioned a consumer sentiment is likely still to continue to be challenged what happens in the overseas Market Still Remains to be seen and how that affects how that impacts the domestic economy as well as the the consumer wallet, right? But I think the trend is positive. We're all hopeful and a good wage.
in the second quarter
Especially heading into the the media 608 shopping shopping season online shopping festivals, but where I would say cautiously optimistic in terms of the magnitude of the rebound now in terms of the question on margin, you don't need marketing from the fourth quarter as compared to the as compared to the previous wage. I think the main reason the main cause of the year-on-year decline in Gross margins was mainly as a result of the growth of our business together with the mountains shifting in business mix, right? I think this has been a prevalent Trend across quarters in in 2019. We're in 2018, that the high-margin water purified product represented and outsized proportion of our overall business and through the growth of our overall business including the various bio.
Branded products business of the cost of 2019 the water purifier business while still growing has represented a proportion of overall sales, which has resulted in a in a law of gross margin in value. That is the main driver of the margin Trend in the fourth quarter of 2019.
Thank you.
The next question comes from xudong Chen c i c c please go ahead. Thank you for taking my question. I have two questions. The first one is sees the impact of coronavirus. Did you see the slow down for iot penetration since this year the coronavirus the press the demand for the new technology applications and every company they just pay attention to their cash flows and to their their business not not instead of the new technology Innovations. That's the first name is chicken one is as you mentioned the water purifier and the gross margin may have some pressure in qq1 2026. And could you give me some Outlook folder what purifier 4 to 4 and what the strategy for the company for for this year and 4 mm? Yep.
What? Thank you.
Okay. Thanks. You don't let me take your your questions as well. So in terms of penetration, so as you saw in a fourth-quarter results, very strong by Memphis heading into twenty-twenty right off the part in terms of financial as well as operating statistics. The current situation is obviously result in a slow down or declining retail sales of the various consumer goods, including a home appliances, but we do see an uptrend towards penetration for iot products to continue to increase our going forward perhaps even more rapidly as consumers place like emphasis on on their home environment which significant demand for Content Rich online offerings. We do feel that these Trends will present significant opportunities for us to Define buying a brand new vehicle in space as we continue to roll out the install base and and we reach our product and content offerings to Consumers and particularly going
To do this next generation of 5G and Wi-Fi fix connectivity. We see a lot of opportunity not just for us but the overall kind of an industry.
As a whole. All right, so the short-term slowdown but but the overall trend we see as still being very attractive for biotin on your second question with regards to to the water purifier and outlook for this year. So I think I'll say this as you can appreciate there's a lot of uncertainty in the industry and now I'm basically in China in light of recent events. So there is currently very low visibility in terms of full year Financial projections, assuming continued stabilization and Recovery in the current coming months. We do expect to achieve or we achieve a healthy levels of top-line growth for for the full year above industry level as we continue to Monitor and gather additional Clarity on the situation will of course provide further quantitative updates the market on overall guidance in terms of birth.
The water purifier, so it's as mentioned. Um as a as a result of the quite aggressive promotional campaigns as well as Channel destocking initiatives during the first quarter long as similar as in large part due to the covid-19 situation. We do expect a decline in a s t and margins for from water purifiers for the first quarter of the month compared to last year. So it's probably not appropriate to comment on the current margins of water purifiers in the first quarter due to competitive reasons, but I think you should gather some guidance from special from this special promotional activities that you may have seen over the past several months right just from public information officer popular. SK use across the industry where discounted by as much as say twenty to thirty percent or even more in terms of retail price as compared even as compared to Thursday.
Double eleven promotional. So our water purifier ASP and on the large portion of this is of course, uh to be business, um is around say 10 to 15% lower as compared to the first fourth quarter of 2019 in the first quarter of two thousand and in first quarter of 2020, so it's as mentioned as well, We do expect our overall company gross margin for the first quarter of 2020 to be red relatively similar to that of the fourth quarter of 2019 with sequential ships in product mix and and other products margin files as well as an overall premiumisation trend largely upsetting the impact of the decline in water purifier margins. So we we do have a number of other initiatives underway with regards to our order purify business to mitigate the ASD Decline and margin impact including one renegotiating Supply prices with many of our OEM part number.
Which is already on the white and has yielded meaningful results already. Um introducing logic capacity Hai ASP margin. Xiaomi branded products to the market wage, which there has been a General Industry Trend towards in any event. So, uh, we will have several new used to be launched over the course of this year as well as large possibly one of your flyers and the introduction of next-generation high-tech water purifiers for the journey brand. I took the market or the course of the year in the specifications. We we look forward to to announcing of the of the coming months as well. And we also expect price competition into two e's in the coming months as in a tree and it will if the industry and economic impacts of covid-19 continue to operate to continue to moderate.
Okay, very clear. Thanks.
The next question comes from Robert crowl of 86 research, please. Go ahead.
Hey management. Thanks for taking my question. I actually have a couple here. The first one is about your product launch schedule this year. I remember last year the off-chance World Expo event in 1 Q was a a pretty major launch event for you guys. So I'm wondering with that event canceled this year. What does that what does that have on the product launch schedule and
Then I'll have a follow-up as well.
Okay, thanks a lot. But so that one so I'll probably I would say the one schedule has not been materially affected by the current situation. Obviously we have had to adapt I'm in terms of tearing out launch event. So as you mentioned the the a w e Expo in Shanghai as well as the the Guangzhou trade Expo had worked in a canceled or postponed the same but we will what we still plan to conduct our own product launch events at a suitable time and have respect of Ceremonies over the course of the Year. Perhaps through a line and or offline measures to to launch our products.
Okay. Thank you the next.
The next one is about the I guess framework agreement with shooting in Guangdong Province. I'm off during the previously we had a mostly Outsource production model. I'm wondering if um, this is signaling a shift toward more in-house production. And then also what type of capex requirement should we be looking at for this facility in 2020 and then out years as well.
Yep, thanks. So this technology park is very much part of our long-term view back to being able to supply our secure our supply chain resources. Right? So while we have been very successful to get today to running an asset in a business model, which is allowed us to to scale up very quickly. I think as we get to a certain scale being able to have a meaningful control the supply chain, I mean in terms of sourcing as well as a quality control as well as uh cost control we we've going to be very important to us right off and apart from manufacturing or production. Um, the headquarters expected to be multi-functional. So as we mentioned it's going to be a two-phase. Uh, yep.
build up with the first phase mainly expected to
Which is comprised headquarters a product experience Center and R&B Center a smart manufacturing center as well as the centralized sales and services functions rights are very much activity as as a centralized point to to continue to grow our operations, but I think the long-term view is that at least in some critical components or some cold war in terms of core products. We would like to have a good degree of control or over the supply chain for for for such poor percentage products now in terms of in terms of capex, I think over the next three years. You should expect say 3002 to 500 million MB of or capex mainly in relation to the first phase and most of this will be p.m.
So we required long depreciation scriptures.
All right. Thank you very much.
The next question comes from Vincent you of Needham & Company, please. Go ahead.
Hi management Congress on my I have two questions. One question is about the vacuum cleaner. I do see we have a few vacuum cleaner regard is explained in the show me or Wyoming. So we do you see I expect to see this category in 2020 and my second question is on the promotion sites. Are we going to see major promotions in second quarter or laters this year to catch the like rebounding demand? Thanks. Well, thank you, but you should just kind of woman Jacob you need them to be able to teach attention to you and when you calibrate the bigger Trend that off.
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Sure. Okay. Thanks Vincent. So in terms of your first question on vacuum cleaners both in terms of The Suite provides the point will vacuum. So we have two categories here one is one is the xiaomi Branded everybody sleeping robot. So as you may have thought of seeing you this part has been very appealing to to Consumers, uh in China, which is very large core of potential in this business and actually off appointments of this particular.
Or exceeded our expectations and contributed meaningfully to our Revenue contribution in the fourth quarter of 2019 as well as going into twenty-twenty. So this has been a very successful product launch by us the xiaomi and we look forward to to further cooperation on this side on the Bayou me side of the business obviously off the portable vacuum that very recently launched as well as our own brand of robotic vacuum cleaners. We do see a lot of upside in terms of Black Market upside potential in terms of household penetration for for this product, right? We see a lot of we see really to the market really just getting started and really see this as a very important part of our kind of OT product portfolio both in terms of both in terms of being able to to age
Like two other devices as well as being able to engage with the consumers across the entire household as uh as important part about OT at home infrastructure so off I think to to answer the the vacuum how it fits into our overall strategy. We reduce theaters in in central part of our platform even as much as so I say some of our larger appliances are going forward on your second question about strategies or emotional activities for the rest of 2028. So I think we will continue to assist in the development of our products and improve our competitive advantages. I think that's that that's very important. I think another important is in terms of consumer preference and our target market, right? So we have seen consumers, especially in their twenties and thirties wage.
More likely to try new products in particular high-tech products with modern designs. So I think it's very important to develop our products and then we had designed and developed our products with smart life functions to cater to these young people's needs whichever effectively, uh, helped us to to attract more younger customers. I think the other part is the diversification and creativity about marketing channels. So in terms of marketing we continue to showcase our products we Corporation online inquiry with number of trails off on on online platforms. Like she'll functional right read a little red book that we met cetera inviting these curls to test and demonstrate our products as well as interact with with bandwidth users on the platforms as well as other social media campaigns as well as online advertising content at some pains on a reach as well as these are online
Platforms, right? So I think in addition in addition, we also utilize a lot of offline marketing tools as well including offline advertising as well as are offline experienced or network of incorporating new branding especially for for the iot product very important to to get in front of or consumers be visible to Consumers to to be able to create some level of awareness as well as combatants in your brand write something that they can they can touch and feel as well as test out. I was very important especially Indian accent or beginning phases of I take medication, um in the country, so I think a mix of both online as well as offline marketing channels have been quite essential to wage.
about business and I think um in addition to the relative speed of our
Success of our success in course, including our quite consistent and numerous new product launches and together with a differentiated nature of our branding value proposition. I think has also provided us with additional uhh traditional as well as social media coverage which has garnered additional interest on both sales platforms as well as change which is quite important in getting your products to Consumers, right as well as of course to be and to see our customer base.
Got it. Okay. Thank you. Thank you.
Again, if you have a question, please press * then 1 as there are no further questions now or what to turn the call back over to the company for closing remarks.
Thank you. Once again for joining us today, and it has other questions. Please feel free to contact investor relations department through the contact information provided on our website or the can send a group to comment investor relations. Thank you. I have a good one.
This concludes the conference call. You may now disconnect your line. Thank you.
Thank you everyone. Thank you. See you Thursday, Thursday, Thursday Thursday.