Q1 2020 Earnings Call
[music].
<unk> financial results.
<unk> Twentytwenty.
Cool.
Okay.
Well be in listen only mode. They will be a presentation followed by a question and answer session should you need assistance. Please signal a conference specialist bypassing the stocky fully by zero.
Please note. This event is being recorded I would now like to turn the conference over to Mr. <unk> Chairman and CEO. Please go ahead.
Thank you operator, please allow me to weakness Super first.
Hello, everyone. Thank your for joining US today the company results in the Investor Relations. Please you show were released earlier today there are many companies.
And I are your dotcom.
David I believe Youre Mr. me, some wide chairman <unk>, Chief Executive Officer, and immediately billion Chief Financial Officer, Mr. I will give a brief overview of the company's business operations and highlights, although buying and well go through the financial within the guidance. They will both be available to answer your question.
Hi.
I remind you that this call may contain forward looking statements made under the safe Harbor provisions of the private Securities Litigation Reform Act Mighty money.
Such statements are based on management's current expectations and current market an operating condition.
And it relates to England that involve known or unknown risks uncertainties and other factors.
Which are difficult to predict and many of which are beyond the company controlled.
Let me call for companies actual results performance or achievements to differ materially from the forward looking statements.
Further information regarding this and other risks uncertainties and other factors is included in the following.
Each region.
The company does not undertake any obligation to update any forward looking statement as a result of new information future.
Or otherwise.
Except as required under law. It is now my pleasure to introduce Mr. So my guess July will brief you on his prepared remarks, he didn't targeting Chinese before I translate for <unk>.
I don't think.
Joel.
I can't do it Sunshot gene Kennedy the.
Oh any heading here.
You don't call the Dod each in Asia, So we've been saying she each it she but maybe well my one thing like yeah. Yeah. I was just send you change here you Jay.
C and Oh, Oh Gee music.
Almost shopping.
Oh Gee you signed so that's all.
Interest I didn't you.
So he called me, so who knows the census, so what's your view each other shot the.
Children shoes.
Intensive funky Jacek.
And just go find unique.
Each of those some kelcy that the I'd.
Thanks, Yeah.
Oh, you watch out so you will show up on she didn't set at body.
Quite easily meet a me.
Julia that's simple wishing you diesel GE Oh.
Hi, good quality, how you you can pose Sunday, we bought back inside this undersea.
What do you like <unk>, which you send all that into decided the thing so hopeful Chilean function.
Yes, you, though so let me.
Well, it's I'm seeing wanting something so lets say seaway choppy paintings on not only shot yes gene bad inside he said that you might yes, yes, yes, and so.
So we'll get you.
If I mean, so you leaching name was choppy thing John you want to Pete.
So we shall be joslin.
So I'm sure she has.
If I may have already highlighted continental be so we feel like just the journey. We shipped so she goes up or do you thought about that.
Well, maybe a deep sleep lead.
Why don't you.
Oh, just to the Uh huh.
Well, it's on Boulder police, we walk so it's the body bumping that ship.
I apologize leaching bump up you all tools that whole, we'd all you called out she school students.
The next year, you'll soon so.
Sure.
Something that's certainly something Gina he shots on Copaxone.
So when she said too so it's oh functional that you would have more BRL 10 cents Vinci converts yep.
No it didn't choose the de she also hey, Tom could you do see that to you can be seen you there just isn't.
Yes.
You are trying to think that.
So it's been Boulder bugging, you could hear you acquire who could watch on the deep Jean <unk> shootings, Linda you see thoughts and go to jail. So he's talking about what do you want.
So called until she meal Halloween, who that's what's that you don't Vincent just old although.
She Tanya.
Oh, Oh told you that she needs will be doing in the genome.
We'd shibani.
Once you need a cheap yield useful yeah. It's also the Wachovia Teagle, you don't switching huh.
The beach depots <unk> Ben genome.
Venture you won't be other switch here. She she bought me it should that since.
She's seeing Dol people, yeah job well done so you end up also.
He's done a chance.
Transition.
Cohort I mean, something so how does the tabasco, but just.
She said it's already.
Usually shopping and feel about so.
See belching fishing thought we could you point I just had.
I'm going to Eagle gold, all shapes, and I mean G April one anymore.
Possibility, but you can't Solarfun.
Yeah.
Jim coal.
Fishing.
Washington, So that's always quite slow shocking that sheets.
Sorry.
She said she sort of I don't feel so I'm, hoping you dribbles home chip we bought it yeah, yeah yeah.
Okay. So she told you that can.
Well, thank you chicken that seem to hop on.
So all that.
You know she chose to simply meeting.
Hi, good idea.
So the whole thing Jim cool, but just a copy chip <unk>, Jamie so so that's funny social angle all show that.
<unk>.
Well she she's why do you think they see the highest that she's got dropped on Oh, yeah, but that's certainly the sheltie simplifies the inc.'s jostle anymore.
Oh, Yeah, why she just don't just <unk> earnings I think yeah.
Well I mean, we'll wait you knitting.
She's all why not go you'll talk when it she.
Oh sure so well that will close age Hunkele thing she yes [laughter] chinchillas.
Susan teaching homework.
He suddenly change if I found that she says on.
Quite easily didn't you find that show.
And then you bet jump off we yeah, it's only about two woman CNG cylinder.
[music].
Little Tocci men go to you for gene can shift so how do you get shot at it got the yet then I suppose the third but yes, you are the utilities ship when do you know that's all.
Sure Brenda suitable jostle changing G box on debt cheap.
Don't don't so well that somebody that trend and slow woman. She is changing so does that someone bought that since you. This is that you forgot to you. So obviously it that buying shyness Banja almost feel put that she when they need the end don't talk to you try to see anything that you thought that.
Hey, so [laughter] feature.
Hunting Oh, well, that's all I guess, what's the job I think also just hope.
She [laughter] someone just you'd be eating hey, do you want either impacting that.
Yeah, I want a good she lets you wish I ticketing GTV, sorry, Joe who.
John Fancy good jogging shadowing.
<unk> [laughter] problems you had been challenging so didn't just season.
She said to me that so we bought say that gene sung ji.
Shouldn't be she would it suddenly and so they don't Bobby I see well maintech guns. Okay.
Seven inching.
Let me say four years, Okay Touchy, it's all 17 club.
Tissue.
Thank you chairman, we fell off the first.
Hello, everyone for joining us for today's conference.
I'll say during the impact of Big Toby.
Yeah, when you first where yields overall performance was better than expected.
We achieved a 2.37 bps upper body and.
35.
Jeff.
I have a marquee sheer went up slightly.
18.9%.
And fitted probably national until well fever assay declining.
Right.
Her combine sorting out transportation.
Possibly decreased 31%.
Actually the ASP decline water.
Yeah, we need a dynamic.
Braskem degree as one of the backbone industries with imports.
They turn from normal operations had many other industries.
After a strong all work.
The industry possible what is most recovered to 23 presenting March and further.
Two.
So.
Which was faster than last year.
And why we don't know physical goods grew 5.9.
And I asked you about China retail sell sell nearly 20%.
What are.
On one hand, I see more spending which paid off.
Yes.
More bodies and a problem we are category.
I understand the expressing bbten industry responded quickly to provide.
In an ample capacity.
Thanks for excuse me I'm pretty sure late.
Oh, there being a positive trends.
We took comprehend.
So.
Oh celebrating.
Yes.
We see havoc on pads.
Further expanding our market shares bargaining.
Thanks.
And the completion.
First what do we sat out her body goes.
Water district or gets to each oh.
<unk>.
We agree.
Incentive policy catered to differentiate it mark.
[laughter].
Birth is everywhere.
And the customer.
And we will lighting, how you're responsible for patients.
Bobby I capacity.
Further optimize the engine for Peter we issue ending pool discipline.
So.
And finally dispatched inequality maintain rocks selection excess capacity and Golden man. So after my seat utilization and acquiring.
And every team member from cash reserves and cyber financing prevention we.
But you still liquidity pressure in helped the Capex funding, we never have qualified network partners, we saw like Mark potentials in operation.
Depending on the level target.
This network partners were awarded with varying degrees.
Right.
He was income each ever network partner to secure first mover resource established.
Okay.
Its role model may help.
Uh huh.
Oh, sorry that way.
Actually.
We increased efforts to further in public or something else would be.
That's what more efficient.
Such aspects of the nice thing stock woman.
Enforcing standardized to pickup.
Greetings.
Oh.
We spent a central quality monitoring and control has done for Accountabilities any moved to respond.
Developments.
Yes.
Let's see if.
If you ask gradually shifted from <unk> <unk>.
Swing management approach that pays more.
Andrew Dice operation.
We like.
Okay nationally.
He always doing it.
Space that we.
Region.
Actual management.
And data analytics, which is becoming more in a more capable of supporting.
Mm.
That monitoring.
Hi, my patients in shorts.
Robert.
Well he called me I'm outbreak.
That's.
It also brought about opportunities.
Menu factoring assumption and he's got lifestyle.
Yeah.
40 into the statistics from each line item, that's not where patients.
As of March 2020, there were more than 900 means Matt.
Uh huh.
Which over 700.
Hi shoppers.
New marketing practices succession live streaming and virtual community hole.
Arthritis.
Well take gross digital economy has become meal girls.
Expressed some people we will play an increasingly important so to connect.
<unk>.
We firmly believe that is well positioned to reach a and C.
Yes, we have well established a copy out in the most it could go on team and strong because the capital reserves.
The most efficient operation.
Okay.
We just to start up with it.
However.
We are.
Being part of this week.
And yet.
The company CCGT vigilant.
Looking pretty nasty.
We like spend I forget what Easter weekend, we think we source extending the reach and diversified.
Service.
Better be <unk>.
I have to recommend.
In the future <unk>.
More than <unk>.
Huh.
Together with a.
Jason.
[laughter].
Joe Wilson from ultimately.
Millions entrepreneur.
Fight this won't walk upgrade.
[laughter].
Yeah, well not only because he.
Okay.
Sure.
If that come next trough.
<unk>.
It's hard to get back.
The what why that's happening.
[music].
At 18, we have.
That that's now here yes.
Sure.
<unk>. Thank you Sophie Hello to everyone on the call.
Does that go through all financial results.
Unless specifically noted all numbers quoted are in RMB percentage changes first two year over year comparisons.
Detailed analysis of all financial performance in economics, and cash flow are posted on our website.
And I'll highlight some of the key points here.
Although adversely affected by global pandemic.
19 outbreak a parcel body I'm still grew 4.9%.
Reaching 2.5 point 4 billion and our market share expanded to your 0.3 0.2, 18.9%.
When you decreased 14.4.
0.9 2 billion.
For all core expressed delivery business.
He decline.
37 cents or 19.4% fourth quarter was at a similar level of the industry peers.
It consisted.
32 cents, a volume incentives representing added support to our network partners maintain competitiveness and to cope with the pandemic impact.
Gross profit decreased 35.3% to 890 million in gross profit margin decreased 6.6 points to 29%.
This was a combined result LP unit price decline as previously noted.
Better than expected cost productivity can and of course increase in body.
Any transportation costs declined.
15 cents to 55 cents, primarily due to eat waiver since mid February and a decrease in diesel price.
Increased number of self owned high capacity trailer trucks and better resource planning as Tim mentioned earlier contributed to the cost decline.
Units sorting costs increased two cents to 41 cents.
Because fixed costs, where with limited volume leverage as coach Inc. fourth temporary shutdowns are starting operations until gradually reopening in mid to late February.
S.G.N. eight as a whole decreased 9.4%.
Including share based companies.
Awesome personnel costs decreased 5.8%.
Income from operations, excluding SBC decreased 39.1%.
See it its margin rate declined 6.6 points, which is consistent with margins decline.
Operating cash flow was 177.8 million fourth quarter compared with 633.3 million in the same period last year.
Decrease resulted mainly from 311 million net profit contraction and it and 9 million increase in accounts receivables related to quantify network partners, who are granted extended payment terms for transit fee payment.
Capex spending for the quarter with 1.3 billion.
We further strengthened our infrastructure in anticipation of future volume increases.
Nice as well as.
Resource planning for development of ours, it's done we anticipated.
We anticipate our Capex plan remains to be around six to eight bidding for the year.
Sure depreciation and amortization.
Christine what do you sense, and 35%, respectively, Oh, EBITDA was 1.2 billion, which declined 21%.
Our transit and sorting capabilities.
And capacity as well as operational efficiency.
Against continue.
Rising cost of labor.
Realized greatly on sufficient infrastructure investment.
Now, let's turn to business [laughter].
Oh, the world outside of China is still coping with its called nine PM outbreak, we hold a optimistic view on domestic Chinese economic recovery.
Right.
Based on the April and May performances, so far we're confident in delivering this topline and bottomline growth for the year.
We target to achieve an annual parcel volume in the range of 15.9 billion to 16 point being in 40 year, representing a 31% to 35% growth for the whole year or so.
37% to 42% for the next three quarters combined.
At the same time, we expect that.
Deliver and just it adjusted net income in the range of 5.39 billion to 5.83 billion.
Presenting a 2% to 10% increase for the year.
Or 10% to 20% increase for the combined last three quarters.
He's current estimates are prudent and are reflective of our preliminary view, which are subject to change as we continue to monitor the change in the competitive environment as well as the economic environment.
This concludes our prepared remarks.
Operator, please open the lines for questions. Thank you.
We will now begin the question answer session.
To ask a question you May Press Star then one on your touched turn sorry.
If you are using a speakerphone. Please pick up your handset the full pressing the keys to withdraw your question. Please press Star then too.
Please keep your questions to two at a time and if you wish to ask mall, please free and to the queue at this time little pause momentarily to assemble ABA stuff.
Your first question comes from bands ice from Citi. Please go ahead.
Oh, that's all younger so great job.
Okay.
Oh gosh.
Drilling.
Oh, we want to comment because I think that's out when shallow gotten should.
So a lack of doesn't tell the tradition.
Thank you don't show Oh, My Gosh I'm thinking.
Oh, yeah that gallager, yes.
No we're going to cause I assume that's usually gosh out well like it sounds like a tissue.
I think on young company, well, that's a tool kit.
You should go what my God.
Sure well shoots yet.
Sure the Johnson dependent cool I sure my switching show for the treatment.
Yes, hi, though.
Shadier has gone well go to that younger ones here, she's asking about that younger ones you won't show.
Good morning, Thank you.
Thanks, Richard just kinda gigantic uneven she won't get your older since your commercial.
Got you won't challenging Oh, gosh I'm Jewish.
Okay.
Yeah, you only get the boundary showed up I think on non-GAAP does Oh, gosh, and a big huh.
With that I'll take a play hold up in a true Andrew Wong.
Sure I sure.
What's happening so I think also go groups and channel Jonquiere, Oh, I'm, sorry, what does a wonderful so my first question.
Who lives.
Even so strong I wish bone golf homeless goals in China, which leads to very strong Bose.
I never volume myself or maybe my goal Abstral uprising capitation stretching animal we can do a true gabi good volume as well.
Well they change Albert previously.
Commutations got.
On the my second question.
In two weeks of young.
Regarding on the guidance the volume Guy that that's actually quite good.
I'd say jumped off the full year non-GAAP profit guidance, it seems like incentive fees and high end.
Okay, well previously within 10%.
Non-GAAP gross could it be thinking what's done considerations Hank.
Also the ASP pressure.
Or are we seeing totally charge.
Hi, Dr. Haitian by two mouse thanks.
No.
Yes.
She is a severe hardy sze Ho second Guy here.
Yeah, Yeah, we've put a discharge and she does little immediate can policies.
She's a jukka shot yen Ching thing has been.
Just either.
Oh, I'm, hoping you could those football.
Something that you need any good ocean sits at Suncor shares.
[noise] hunting and win.
No I'm a junior enriches the so.
She Honda who couldn't Johnson from 14, Phillips, she's saying well she wanted choose a young warm enough for certain jobs. So that is she could be it's a good thing while holding and she chooses.
So, yes, I mean.
Yeah.
We do that it took a change in good Judy and beginning to their susana continually.
Yeah, its own to the chances you China's which is who.
I think we can John issue.
Total.
Yeah, you. She she will me and then go to Oh, yeah, Yeah they need.
And if you go tissue.
First let me I translate for the Chairman and then I'll answer your second question.
The first party as yes, we have observed.
Well see recovery in the marketplace.
Since the recovery and in the second quarter.
Price competition has appeared to be intensified as we look.
I don't performances.
All right I think the growth is there what volume, but it's not easily had simply because of the increased the total net.
Volume, we do have.
Eight responsibility and also a intention to first secure our existing Bonnie and then secondly, focusing on our core strategy to gain more incremental volume, which would include gaining body in from other players and other peers.
Our focus still is on wall Street aspects of this improvement volume quality of services in productivity.
Right.
In the marketplace to build our vertical capabilities.
The guidance for the volume is.
Reasonably based on the overall economic outlook, including those statistics published by the Central Post Bureau.
Looking at.
A gap.
To feel for the first court.
In in order to reclaim the whole year, we did put forth a reasonably achievable and also sound earnings guideline.
And second aspect to the second question is as chairman mentioned.
The first quarter is behind us and we've noticed the market competition is intensified.
So with that uncertainty interface, we want to be able to leave room for us to respond quickly.
Again, our focus is to accelerate our market share growth.
And expand the leaders distance.
To further exploration our market share it increase volume is of the utmost importance to us a month or three focused initiatives or it goes.
So leaving sufficient.
Confidence for our operational people as well.
I'm sure we are able to deliver on our promise we've set the outlook such.
Thanks thinking applies only go for it [laughter].
Oh.
[noise] [noise]. Your next question comes friends and Yang at some C.I.C.C. Please go.
Ahead.
<unk> I don't <unk> <unk>, you could kind of young yet no where you're going keep this year, you made coming home cycle Nice Union D.V.D.C., Yeah, <unk> <unk> <unk>.
D things that would be cool <unk> <unk> <unk> <unk> do like to <unk>, Jenny Jones, I know what to eat I find some so actually think you'll have established got absolutely basin nycomed by system, but.
Some odd second half a last year, we have feed that simple has a intended <unk> and also does the other <unk> you two engine, you'll so what do think help out to the <unk> <unk> <unk>.
You know.
<unk>, So goodbye Yugoslavia chatting cool so good so the one.
Yeah, well you only she attention <unk> yeah.
No need you to getting full changed so that she thing.
<unk>.
Hmm.
<unk>, what's a woman neat <unk> <unk> <unk> <unk> <unk> <unk> <unk>. So the <unk> from home to tell you. She she woman query and saw woman she's been city.
<unk>, what my when Jim bass.
<unk>.
Thank you your machine quick question.
The Chairman says China.
Express delivery market or China, China's <unk> delivery logistic market as a whole requires many players in order to properly serve.
We see P.O. will continue to focus on our own capabilities and competitive advantages we are building.
We're infrastructure, we are focusing on improving or quality of services and ultimately whichever the business form or whoever enters this place to compete.
A value preposition to to consumers to our customers is the key.
We are focusing on the cost the highest efficiency and the best of quality of services and that's what we are going to continue to do.
Going forward.
How does seem to like don't think again so.
Yeah next question comes from fan So from Bank of America. Please go ahead.
Oh, Yeah lights on Jan somewhere Sophie Oh, what's the amazing.
<unk>, Yeah, we got <unk> quite there you go <unk> <unk> <unk>, <unk>, which is <unk>. So don't quite a whole since you caught so it doesn't sound so far true <unk> downwards. Your search engine shop <unk> just.
<unk> Oh, you're shown a winning <unk> <unk> <unk> <unk> hope you cheat shooting yeah, and the tone. She sure sure you got some young dig up yeah for a whole was it yoga when she should acquire use I'm in fishing, those young what kind of Oklahoma <unk>.
Yes, or managing thought that <unk>, <unk> <unk> <unk> <unk> <unk> <unk>.
Yeah I was just this year and saying you show the web T. Thank you management has to question says on your cost side, just wanted to us about yeah room for so it a unit cost reduction in the future <unk> see room for C.P.O. Two continues to do is automation and the price of trucks.
Continue to reduce costs. So just one regular with just a room full photo reduction and second question is about the <unk> have already for C.P.O.'s business in April and besides half of my thank you.
<unk>.
<unk> 10 been dot com.
Hidden units she's a woman.
So she until you need to to yeah.
Woman Temping High school Shankill agenda.
Gee I knew I mean.
<unk> <unk> <unk>.
You couldn't according to the U.C. plus he didn't want me to you today on top or something.
More to choose the option.
Yeah, it's an interesting fees honey I should.
So did.
Tom read Uh Huh, pink or you will see.
So he's a year moody on the things well <unk> <unk> <unk>.
The.
Saying she did <unk> <unk> each on the ship.
He has entered into the little woman each other at the Mmm quite a total.
<unk>.
Putting that don't she.
<unk> <unk> <unk> <unk> <unk>, you thought though.
We thought about yet.
We had things on <unk>.
<unk> I hear a second one so she is.
<unk>.
So you're the second time, if you show pet <unk>.
You can do so this was since I had alcohol phone call you soon.
<unk> changing <unk> yeah <unk>.
<unk>, yeah since I suppose for chocolate.
Yeah.
Oh, Thank you for your question.
10 minutes with V.T.O. always focuses on call control and will continue to find room and then we do see I'll room <unk> game going for for a longer period of time. If you have noticed made some changes during the first quarter.
We have increased significantly increased self on vehicle and purchase and put them into use to balance.
The volume between output and input region.
As noted earlier.
Consolidating resources and access load.
To acquire additional volume.
Of course costs productivity gang is largely reliant on volume and volume in because the scale leverage.
And what we've seen that as volume increase or whatever.
Almost on a per kilo basis continue to decrease.
Second.
Secondly, automation is another aspect, where we could gain more productivity.
As in the previous couple of years, we have <unk>.
Installed a lot of this oh.
So sorting equipment and we are now shifting to integrated larger package automation machines to be installed in our new opening.
Sorting centres Oh goal is to achieve.
<unk> to be less reliant on people or people this operation.
And some of our new openings this year they'll see that.
Becoming reality.
Second question in April and May.
Increase in the E. commerce.
The trend is very positive, 23% and it's pretty 2% increase year over year. We saw in May is also potentially going to be faster growth in the previous couple of months.
T O. Consequently would also achieve.
And follow such trend, it's not exceeding it.
Thank you for your question.
Oh, Yeah. No question comes from Thomas Channel. Some Defreese. Please go ahead.
Oh, Oh, Oh, Oh, well should I go on top of my mind, She's not have <unk> I cannot within Oh fine with like a partial going that much on the number [noise].
She wanted to do the <unk>, Oh, well don't kind, while I'm talking about something new your son.
Hi, My expectation that yeah, Oh, Hi management I can call came on questions I'm asking how much and then we saw that our daily volume in the first call me <unk>.
Oh for 15 minutes awesome extra police comment about.
Trend about the June given a different <unk>. Thank you.
The woman D.C.
Yeah, just a little Delia fan.
Yeah.
That's a good thing.
<unk> yeah.
The one time genius moved out since as if they tell you. She she she waits just delete ya.
<unk>, so they use Sam too.
Maybe you Chuck D. <unk>, Okay, yes about it.
Since I won't be all <unk> going to their best insist that by the things.
And then at some point yeah.
<unk>.
<unk> she's a woman highly timing you thought Oh newish anyway, so new to the <unk> <unk>. They want me since we already.
<unk>.
Oh, that's a good so hard so.
<unk> Okay. Thank you for your question.
And our outlook for the second quarter or even the third quarter is optimistic.
The whole industry is set to reclaim the whole year squirrels targeted as the postal Bureau, or government have anticipated over estimated the four years target as 18% and that target has not.
V.T.O. with it's sufficient capacity.
We are confident to participate in all these online promotional events and face.
Significant increase in the volume.
Hour optimum our best efficient volume level currently is set to be 60 to 65 million per day.
The with that we are confident to take.
Opportunities from these increases and particularly the promotional period.
In the second quarter.
As well as the third or even the next three quarters of a year.
Oh [laughter]. Thank you.
<unk>.
Your next question comes from that Mickey cheat from private S. Please go ahead.
<unk>, Oh, Oh, well you guys think Oh, what teachers challenges I want my mom Glenda <unk> the whole nine she she ching yeah, Yeah, <unk> Mcdonald's links allies ownership checking woman.
I think that that's what you want to them all done if I can actually <unk>. So what's the things that <unk> <unk>.
A lot of discussion on the from tall, Oh management comment on the current Pope ourself or less now drop off.
Thank you.
Well T.N. <unk> until you.
<unk> cool <unk>.
<unk> <unk> <unk> docket sat back into dump it since we deal with a friend.
<unk> <unk> gene pool T. soon.
Okay D. in the pay some choice.
A woman told you <unk>.
The five that Madonna Oh junior you'd she's doing that so little woman could you know her to that so it's I know you something somehow you about 10 tobacco so you out to the.
<unk>, Hey, sushi in the pool shouldn't talk to you that one <unk> <unk> <unk>.
Did she say no more than the non pay showing one cheetah hey, she had that <unk> that it.
The tool.
Boxes Ching Sam to <unk> yeah.
<unk> near you back into without you.
Yeah.
<unk>.
Degree.
<unk>, she say more thought shouting they meets the same jump right. Yeah that he had it's only other chaucer phone call this little feet in to the.
Ah.
Hi, Suzanne mostly.
So you can see if I want Michelle's, Jean <unk> <unk> <unk> <unk> <unk> good since you're in the Philippines.
Okay. She she.
Thank you for your question.
As the the last part of a 2018, we started to focus more on developing our large mile capabilities.
First from.
From the total volume currently 40% of our volume or packages are are being delivered through non person to person on the door. It in on the doorstep. They do every so it is through mass mileposts or.
The pickup boxes out.
Out of our total 40% there about 6% Oh, 5% to 6% that is being neighborhood or picked up through those I pick up boxes.
This form of last miles services is necessary in order to cope with increasing the cost.
As well as increasing volume because as a average <unk> delivery personnel that amount of packages are packages that could be delivered isn't limited unless you increase the number of people that there's no other way to serve the surging fog Creek.
<unk>.
On a on last mile additional node is that since.
Last year last part of 2000, a team we have collaborated with hanging out and bailout over 8700 or so.
Posts entered the tiny I was brand and then in addition, we also build close to 28000.
Of A.Z.T.O. operate it post.
Location.
Oh. These are important as we mentioned earlier for us to position ourselves to cope with increasing costs as well as making connection to Oh 10 lately the last mile consumers.
As far as the fee but.
Structure of tape.
Produced or presented by by Hive box. We think this is a way of finding balance between the consumers between the businesses Porter out to make a profit ultimately of course and also we are watching.
Only our posts or or a high or not cut connecting any fees.
In the future there will be a balance reached between the consumers and businesses as well as the last mile delivery person that.
Thank you next to question.
Your next question comes from Nicole lay at some Maxwell Fund. Please go ahead.
Nicollier line isn't alive. He may I ask your question.
Misleading you may have yourself <unk> sure line isn't alive in the cold. Please ask your question.
Once again, if you wish to ask a question. Please press stop then one on your telephone and wait for your name to be announced or not.
Pause if anyone else wishes to into the queue.
Yeah next question comes from Nicole leave from Maxwell Fund your line, it's not alive. Please go ahead.
Nikola Your line is now life you may have yourself on mute.
There are no further questions at this time, Oh now headed back to the speakers for closing remarks.
[noise] [noise]. Thank you everyone on the call but the.
First quarter is behind US as we said that we are set to achieve greater those going forward for the next three quarters. The business outlook is positive in where preparing ourselves in our preparedness intact is there oh, okay is on volume increase and market share accelerating mark.
Sure game as well as protecting the quality of service is in earnings capabilities. So we look forward to have further discussions with you and thank you again for joining today's call.
[music].
Yeah.
[noise].
Yeah.
[noise].
Yeah.
[music].