Q1 2020 Earnings Call
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Ladies and gentlemen did east conference call. This to its begin shortly believes could you just standby we thank you for your patience.
Once again, ladies and gentlemen did East conference call. This do you have to begin shortly.
These could you just standby thank you for your patience.
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Good day, ladies and gentlemen, thank you first any buyer and welcome to the New technologies first quarter 2020 earnings conference call. At this time all participants are in listen only mode. Later, we'll conduct question answer session and instructions will follow at that time as a reminder.
We are recording today's call.
If he had any objections you may disconnect at this time.
Now I will turn call over to Mr., Jason Yes.
Mr Relations manager a few technology.
Mr. Yen. Please go ahead.
Thank you operator, Hello, everyone welcome to todays conference call to discuss new technology as a result for the fourth quarter Twentytwenty. The call is being webcast from companies our website investor presentation and a replay of the call will be available soon I always thought you don't call. Please note today's discussion will contain.
Forward looking statements made under the Safe Harbor provisions of the United States Private Securities Litigation Reform Act 1995 forward looking statements involve risks uncertainties assumptions and other factors. The companys actual results may be materially different from those expressed today.
Well the information regarding the reason factors include bid in the Companys, probably fighting with the Securities and Exchange Commission.
Company does not assume an obligation to update I look forward looking statements, except as required by law.
Are you personally on this call include discussion of certain non-GAAP financial matters. The press release contains a definition non-GAAP financial measures and a reconciliation of GAAP and then got but not result.
On the call with me today, I was CEO Dr. young Li and the Seattle meets a hobby job now let me turn the call over to yet yes.
[noise] alright, thanks, Jason and thanks, everyone for joining us on the call today.
No we haven't seen a declining sales in Q1 21 team due to the impact Colby 19.
Performance the sales volume has decreased by 39% in Q1 2020, and the revenue has decreased by 34% respectively.
We have maintained our gross margin at 23.6%.
Net loss margin a 11.3% in Q1 twentytwenty due to the decline sales.
Let me financial data well with our expectation.
So now first let me give you update on the impact of coping 19.
The impact on the business performance in Q1 was evident.
As mentioned last earning call in China, most cities have shutdowns businesses part well in card Siberia.
We started February with all the stores closed and it was 65% no store open.
Furthermore, as people were recommended to stay home I work from home there were a little retail traffic retail demand.
Since our still I believe depended on offline retailers.
The shutdown of sports than staple importantly policy, how did reduce that was still significantly.
During this time, we purposely erect that we're still ask for online both through our online shops on T Mall JT platform as well as the omni channel approach.
In other words online purchase offline delivery mode.
Particularly on the omni channel approach, we train or still operators to set up online virtual stores, yeah, we try and provide the online sales consultations with potential customers.
We further provided to individual store build threats to generate you Flyers with personal we tried some QR code to give you should be the embarrassed utac HM.
Potential customer acquisition.
No our E commerce sales increased by 1.6 flags in March and three acts the April over the same time last year.
An online to offline orders has increased by two point fivex respectively.
No we started to observe recovery as business started to get back the accretion.
Hi, nearly 100% never stores open by end of March.
Well the retail traffic has not recovered to the same level off last year.
That's very so omni channel has led to a very positive results.
The first where sales have improved by 12% year over year in the month of April.
No heading into June the trying to retail market will most likely continue to improve as Monday cities like Beijing, and Shanghai. He would suggest that no massive necessary, we all side.
In addition, the need for personal commuting solution is very high.
So we're quite confident and pasta above the near future growth in China.
No overseas sales has also be impacted in Q1 as mentioned last time.
Overseas sales volume increased by 6% in Q1 was a very strong growth in January February, but a sharp decline in March as the carbonite, he's bread aisle to Europe and the money other countries.
Nearly all our dealer stores were temporary close globally.
Started to open up in late April early May as countries like Germany friends easily started to lift the loss.
Despite the locked down similar to domestic market in China, we leverage our online capability to generate customer lead or presales.
We launched the online Presales can pay your Oh, the newer models GT at sports model priced at 31 night euros with more than 650 units orders.
Well the actual product won't be delivered on fuel a few months later.
We're also about to kick off like online rental program across our dealerships network, the European gene, allowing users to outbid scooters from our dealerships.
UNFI basis.
Although our flagship store on premise store build out were temporarily stall due to the locked down we continue to expand our market presence anti Marquees South America like Appguru Guatemala.
New addition, as social distancing became a temporary social norms internationally, we did I was there, but the men individual mobility solution.
People tended to stay away from the public presentations.
This trend might increase the total addressable market permanent way when people try all electric scooters and started to enjoy the technology. This pilot in the freedom our products offer.
Has although international market won't be copper as fast as trying to market. We remain very positive about our overseas business performance this year.
No. Despite the impact opened 19, we were able to quickly resumed our product development and business operation and the reduced the time delay in new product introductions.
First we lunch hour and Q2 on May seven.
Our flagship electric bicycle product for China market in 2020.
In 2016, we introduced our and one model, which was the first mobility product that has won all seven major international did not awards globally in the past 20 years.
And well with while our hottest model since then but due to time if you like the lease on electric bicycles in 2019, we'd have to stop production up and one.
After more than one year of design and development.
We were able to finally introduce the I'm Q. I too would see her to the design of our signature and one product was 40 design mounted suspension OE month dashboard, a fully compliant with the new regulations in China.
Technology side, the end to product line encouraged to the new technology platform used on MTT included the versus 35 thought leaves you with remote Hayley ignition capability.
Bill level lighting system, and the new energy power tremendous women with the driving range up to 75 kilometers.
The end to product comes with two specs priced at 45, 99, RMB and 51, nine I RMB, which we believe will set the technology and defense tender for the time that electric bicycle industry.
So we hope our attitude launch with the new format no.
Well I live streaming as how about platform with token our co founder and meet as the sales rep.
This new format started to become a very fashionable trend in China, partially driven by the locked up.
Our for our live streaming attracted more than 3.5 million unique viewers.
Around China, and the rocky up more than 3.7 million likes.
Together with the probably lunch, we started a new product media campaign, China, we see more than 600 media article missions with 30 million Reais 10 million views on wave 100 million views on the OEM faisel.
So we believe the end to product will help father spend our product adoption in China market, while also allowing existing customers to upgrade to this new model.
We also introduced our achieved their product our goal was series just.
Actually just yesterday.
The cheese. There is also a beautiful design that equipped with money practical features such as a baby.
It is the lithium battery based product, but and with smart features as add up.
The Geo comes with two models price at 22, nine I R&D and 27 nine that RMB, but she'll product is a product that will be our entry level product for the new family and will it will allow for new user.
A new customer segment to enter into the new ecosystem.
Second we continue to expand our accessory lines to father U Penn our lifestyle brand image, we do all the newly designed full coverage and the tough comps helmets April.
With that category achieved almost that Tim Acs sales growth year over year.
We also launched the battery warranty services together with insurance companies and with that Rob through 2000 users sign standing up for the.
Supplementary services plan in the first month.
No. Besides the new product lung, we continue to be hence our brand awareness through a buyer marketing and targeted marketing.
No.
New products new product lunch.
Two.
We are leveraging our new product launch introduction, we had a famous Chinese Jupiter speaker at Lloyds call to introduce a and Q2 you get online sales channel in though in resulting nearly 7 million views.
We continue to get our own site I'm sure media platform like though even quite show with billion quality view doubling to 40 million views in Q1 2020.
No internationally, despite the impact of Cobot 19 buyers, we added three Q out to our new crew Timo creators.
With our blockbuster video up not you with the PUC tours shot as Zurich, Switzerland.
Now I'll turn to call it over to Hardy to discuss our financial results pardon.
Thank you, yes, and Hello, everyone.
Our press release contains all the speakers and a comparison you need.
Also a little bit excel format of figures 12 IR website.
As I review, our financial performance.
That's very referring to the first quarter seekers, unless I say otherwise.
Thats all money 20 seekers RMB unless otherwise noted.
Hello to once it was reached 40000 units.
Decreased by 39% year over year.
Hi, not see was water decreased by 44% Hadnt results cost but of course the impact from home is 19.
The decrease was mainly from our ultimate sales through the franchise stores because many of them more closely with outbreak.
I will say was hybrid increased significantly during the first quarter. Despite it is still a small portion of our total sales.
Overseas sales volume increased by 6% year over year.
So strong growth in January and February, but it seems much overseas volumes start to decrease technical 19th White House, we go up and in many other countries.
Total revenues decreased by 34% to 233 million.
And with the guidance we provided.
Revenue from scooters decreased by 40%.
Revenues from essentially spare parts and so that is increased by 5% or the result of strong overseas sales and a larger user base in China.
Very pleased to see our customers like almost actually spare parts and the sunesys.
We've been doing such difficult time, obviously it was in this segment continues to grow.
Revenue for Scooter ASP increased by 8%, mainly because of strong sales from us as we step out kind of services has just mentioned.
In Q1, so every quarter. We sold we also sold RMB 1168 assessments Covenant services.
Increased 74% compared with the same time last year.
Excluding the revenue from assessments.
This quarter SP itself decreased by 1%.
Because of changes in product mix.
In Q1.
Series, a comfortable around the 50%.
Total water.
Compared with 17% in Q1 last year.
Didnt change what Monday caused by the implementation of new National centers since April last year.
However quarter over quarter basis, the proportion of Sealy increased from 40% into four last year to 50% in Q1, this year, mainly because of higher proportion overseas.
And.
Gross margin was 23.6%.
2.3 percentage points tighter than this time not yet.
The margin expansion with men they helped increase the proportion of higher margin product line.
Emulate the overseas and assessments that hasn't services.
In Q1 the overseas.
Accounted for 29% of total revenue compared with 19% same time not.
So essentially their customer services accounted for 20% compared with 13%.
Such favorable changing product mix helped our margin expansion by around 5% in total.
In Q1 gross margin was negatively affected by the lower utilization of our manufacturing facility.
Estimate the impact on gross margin with close to 3%.
In a fuller encoders higher production water cost saving on the goal materials and components, we will contribute to our continued margin expansion.
However, on favorable changing product mix, especially lower seamless scooter at a fair costs from overseas market in a second quarter negatively affect our gross margin.
Our total openings.
Excluding share based compensation were RMB 883.5 million.
Increased by 29% year over year.
The increase what mainly caused by higher sales and marketing side as well as R&D expense.
Sales and lucky that increased by 13 million.
Part of which 80 million attribute it to Randy activity.
Including new product launch during the CES in January.
And the placement of what advertisements yeah, Chinese TV series the idea.
Well not a 2.8 million was due to higher together makes sense of our retail stores had a result with larger retail sales and I'd walk.
The remaining 2.5 million amending that if you to branding and marketing activities to encourage you writing what they did you read outbreak.
For the R&D expense.
The increase was mainly caused by higher staff costs as we hired a mall designers and engineers to expand our if you look entity.
With regard to governments, Glenn we received a one all grant of RMB 7 million, even the first quarter, mainly related to our full impact we must many times.
Our GAAP net loss was 26.4 minutes and adjusted net loss.
1.6 minute.
The loss was mainly due to the lower soon.
And higher Susan Mcgee said as mentioned above.
We thought was it was one of them recovering in the second quarter, which is back to return to profitability in Q2.
Can you talk about instinct and schedule.
And do the quarter with 720 following any cash.
Good and short term investments.
Operating cash flow was negative 24.5 minute, mainly because we supported our distributors and dealers to manage their working capital.
Our Capex was 22 million mainly for settling the payable of new factory and retail stores carry forward from last year.
We strong cash position, we repaid 28 million backlog in January and another 48 minutes April we are in the process of refinancing another bankable mature into it.
As to benefit from the current low interest rate environment.
It was a plan to acquire another piece of land during the second quarter kind of starts to prepare for continued capacity expansion.
Now, let's turn to guidance.
With respect to second quarter revenue between the range of 585.
To 655 minute.
Increase of 10% to 23% year over year.
Our China revenues, you expect to grow at a much higher gross rate you over yet as a result of general demand recovery and our new product launch.
Overseas revenue, however decreased as a core banking continues to affect local retail and distributions during the second quarter.
Some overseas distributors and Peters began to receive their operations in may.
We're closely monitoring trying to recover and we'll provide an update less available.
With that let's now open the call for any question that you only have one.
Operator, Please go ahead.
Ladies and gentleman well now begin the question and answer session. If he wished to ask question.
Please press star one on your telephone and waiting to be announced.
If you wish they can sell dirty quest.
Please press the pound rehash.
Your first question comes from the line of Vinson Q2 for on need Ham and company. Please ask your question.
Thank you mentioned minutes for taking my question My two questions all about margin. The first question is about the.
The offline sales China. So in comes from macro environments do we have two or are we going to.
To give some mixed some concessions just sales channels to support our offline bins partners. My second question is about.
The the raw materials parts and inventories.
We have two we will we have concern over a few toward a cost or the pricing of the departure due to a potential low inventory level similar to the reason.
The.
Locked down.
And so really the opening of the opening probably taught me. Thank you.
Yes.
Listen let me answer your questions first for you first question about the concessional they face to our sales channel in the first quarter, we eat repeat became a additional that base to distributors and dealers. Despite some of them is not.
He is not missed the pockets, we set for that or the media, but from the second alternately began to see China's steel.
Covered therefore, we did not see do we need to keep additional repaid during the second a quota so that the slot now that the constant we already talked to that some of them already in Q1. So the two one marketing reflected that.
Okay second question regarding the procurement cost of go materials component.
We do see continued to decline of procurement costs overall material raw material and the component and we began to see the decline seen much. So full for the rest of the this year. We believe the continue to decline the cost will be positive 12 across a much higher.
However, as I mentioned, we will see some unfavorable change Meanwhile, our product mix, especially because the covis 19 effective overseas.
But if you purity focusing on the raw material and other components, we do see there. So continue to caused in part due its yet so that's my answer to your questions.
Okay. Thanks, Thank you very much.
Your next question comes from the line of Alex Potter from Piper Sandler. Please ask your question.
Great. Thank you.
Maybe a follow up question there I don't know if it's possible you mentioned some of these offsetting impact on gross margin first do you have better factory utilization, a higher volumes and lower raw materials cost. So those are all positive for gross margin, but then you have a lower mix with.
Presumably European than U.S. sales, probably a very low percentage of overall revenue is there any way to guess.
Whether you think next quarter gross margin will be comparable to this quarter. Those two factors will offset each other or maybe slightly negative or slightly positive anyway to get.
Yes, sure I think.
For the first quarter and a favorable change in overseas revenue and also from assessments hot it contributes to around cloud because that so we're very simple calculation you can assume the focus on may not be here full for next quarter, because if your mind minus X, 5%, but if I also mentioned.
Because of the longest unleashing the first quarter, we have a marketing dollar around 3% from from it. So they said they would be something positive. So on that basis, you kind of assume at least the 2% there will be called for a for the for the second quarter. However.
There is uncertainty around our overseas.
Okay. That's closely monitoring how much orders coming in and that's made me having some impact on the margins.
For our self destitute, how do you need to achieve across marketing above 20%.
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So this is answer for the first question.
Okay, Yes, that's perfect very helpful. Thank you.
Maybe then comment also on different Opex line item what is your expectation regarding spending level, presumably some of the line item. In Q1, you were spending less than you otherwise what a plan to spend due to cope with 19.
Where do you expect a higher level than spending versus flat level spending into Q2, and the remainder of the year.
Sure in the Opex, we have three key line the first and the sales marketing soon with the marketing expense was relatively high in the first the quarter because we are already comedian into some of the blending activities.
Before the probably nothing happens for example, the attending the theatrical you add in January we also committed to a advertisement.
TV Chinese TV show ultimately accounted for around 8 million.
The and Thats why do you see quite a high it with marketing expenses, He said kind of a one off.
Expense in the first quarter and the Sunday R&D is tied to normal as you continue to investing our design and also continue to higher engineers and designers. The only thing we caught in the Gen expenses as you can see absolute terms excluding share based compensation.
Our gen. They equity decreased by about 6%, yeah, absolutely terms, so we saved travel with.
Professional service fees et cetera et cetera.
Second quarter, we do expect our seed sales and marketing as a percentage of revenue should the full back to the normal level as what we see last year last year I was just talking with the normally around 15%.
We have between 1% 16%.
It depends on the call does that is from.
Q2. This year, we think physical factor there is a similar level as what do you see before two wind the kind of a exception because some of this one off activity also because of the lower revenue were having the Q1. So I hope. This offers you a question.
Yes, very very helpful. Again last question on online versus offline I was wondering how does that work from a business model standpoint, if you have an online order.
You ship into a certain regions is the dealer or distributor always involved you mentioned this omni channel versus maybe a pure online.
Sales or are there are situations in which the dealer or distributor.
Maybe.
Field.
Hi, I don't know that they pushed back against your selling direct or do you always include a dealer or distributor in those sales. Thanks.
Oh.
Thanks, I think Thats a good question, let me address that so in terms our online model. That's why we separate direct sales an omni channel intermodal is this a direct sales on our T mall. Neither the platform and then we start direct to consumer and that order fulfillment will be you basically shipping will be handle.
Good Bye for example at that express followed by you know.
Bunk basically the shipping company actually would be would dilute deliberate actually delivered to your door and no dealer or are a franchise store involved in that process.
Robert They will need to provide after so services as that's actually a mandate for our dealerships and the franchise stores now with the omni channel is slightly different with Omnichannel essentially what do you do is actually we are.
Platform is actually serve as a.
You can think about their read that as the leader as a customer leads generation for the split the dealers. So.
The consumer goes online.
The omni channel and though he actually come pick which store he is willing to pick up scooter at.
And then we actually are online channel actually charge the store force more percentage of fee as a service be part of that be actually we need to get back to you know team on JD dot com because they are actually charges that stood out what you see in addition, we topped the charger various more services team as we provide the leads gena.
The issue.
So on that note. They know the dealers are the franchise stores have been you'll have nothing against that sales because essentially we're actually because when they compare their user acquisition cost of versus what we generally that leaves. They actually are very happy to participate this omni channel approach.
Interesting okay. Thank you very much I appreciate it.
Yes.
Once again, ladies and gentlemen, if he wished asked a question. Please press star one on your telephone and wait for it seems to be announced.
Yeah.
Your next question comes from the line have been Wang from Credit Suisse. Please ask your question.
Been Wang your line is open you can now ask your question.
Sure sure I think you'll actually I got two questions number one is what's the goals first the true this year and what's the lumber in the March and April and that's first the two excuse me I mean, the 40 gross yield, but yeah I want to see that across the company Chair April why this.
That's that's simple that's number one question number two is about a goal, but it seems much coal by aspirational goal, but she theyll always so your point about some provides a point actually such on the website at <unk> Postal service member.
I think that you find that global official up a thought if they don't cannot fall from Internet see go up quite well, what's the strike stretched protocol by if you would have big things for you.
Hey, much three products you also mentioned on before I, It's full productivity is similar to last.
I do Brett I noticed you end up.
So in markets, such as compared to Yaki shell plus I think it's a new high naturally they can match the bottom I feel minn Kota so kicked up a bit about go about France is critical to be up because then you Brad. Thank you.
Yeah, Let me answer your first question now above the volume trends that we need to sleep well definitely the China market and overseas market you notice wants to see the two picture for the Chinese market. If you look at our own sales I will let January February sales to was down almost a 70, 70% 71%.
The much I was wondering was only down by about 30% to submit their 30%.
Adam April.
Was up more than 50% and we see accelerating growth rate.
That's how we see the China gross and so this is I will grow I was there was in the meantime, also taking our retail let's say was as a means to see it was from Allergan video stores to consumers. They actually fall very similar trends that's why you see.
Holly recover from from this outbreak that's the China market. If you look at overseas market, Our January and February I wouldn't grow up around 60% six near up at that but it seems much I wouldn't want to 20% and the April around 30%, Maine and it shouldn't be some older as weve.
So probably down 50% to 60% based on older. We let it locking however, we do see some additional older coming due in the last week and we also see some of our overseas distributor began to push us to accelerate some of the shipment to them therefore reduced believe overseas market.
So we open and also go back to.
Kind of growth rates problems or the contract. So that's how we see the gross.
During the month is in this year. So this onto your first question for the second question uncle, either that yen to comment on that.
I think on the goal of questions. So is the Google crowd out you actually go to the news Dot Com website, you actually can see the G. One is already listed the cheese, though has not been listed but it's actually list on the JV dot com as that we started as a presales. So with a presale campaign is something that the customers at this point.
You can go on the TV Dot com start shipping basically put down a $100 hunger RMB deposit and then the actual product delivery will be close the endo may or early June.
So it's actually while in line with a with the with the TV Dot Com you know 618 campaign. So the goal was actually we treat as the global series as opposed to separate brands.
The lithium battery based and the.
The baseline version does not have the connectivity, but it's actually it expand the boat to include the connectivity boxes, such that people still can't actually got connected.
To our App. So we would treat that go but as you know as part of.
You could last thing and you both serious and the go itself. That's just one series and we do think actually have a big addressable market, especially with the.
With the China, New regulation coming in starting last year us in cities in top tier cities, where the new regulations are being strictly enforced there is that the men for a more practical still beautifully designed but more practical.
Caught up models as an entry models, because we do have there there's a quiet, but when it come markets second anywhere between the 25 hunger RMB 230, 500, RMB range, that's where the sigman that currently I think it's a it's sort of the high end up yes, the IMA under traditional.
Clears and that's what we think our potter lines can extend it to the obviously anywhere lower than 2000, RMB that's in that market consumer sentiment.
Which is actually where you got the I'm, assuming you're all those guys reside in that.
Market actually I don't think in.
Near futures market that we have where I look I don't think that particular markets of marketing new feature that we can enter so we focused still focused on mid to high end.
Lithium battery base electric scooters.
Okay, I just feel like a few people actually I look globally, Goa and understand the Cobra and there's a very famous everybody likes.
Todd.
Ben to what's the cobalt Brad.
Good.
Most people I understand the Brian maybe more open to shops.
That's really not comply with Neil.
No we since we actually view as well the new series is actually it will be sold us through the new shop as supposed to be independent go well shops and were exploring different formats, such that potentially set up would you call a story in store.
Format in you know, even a bigger multi brand shops, that's a pretty good steady could go.
Recall that medical cool weather.
Enters the regions, but it's still be Brenda as as.
You as you go with Sears.
Well I see I love the question actually I phone.
So I think they got please the first kind of pulled off the <unk> website. So what no future followed and obviously you how many done by shops SWEPI. Thank you that's question <unk>.
Right. So I think yes, so there is.
We do have as there is the shop.
Yes.
There's a handful of shop, where closed in Q1. This year I think it mainly because I mean every year, we actually do that we do that by this will be called optimization for example, actually I.
I think our shopping lots that just closed.
I need to come from that because I was asking the regions, but basically every year, which we closed on few we closed on number shops that we also opened new shops, what happens this year in Q1 as they say every year, we do that but this up this year in Q1, especially he will not be April as you know, we're actually going up.
On a normal business into my closing down the shop that actually low performing shops the old previous years.
In addition, especially in Q1, where the markets sort of a slow market, we're actually opened quite a bit new shops. So the net gain of shop. The net shops numbers you always see increase this year. What happens is actually was shut down the shop for the full our new shops with without locations.
They were not able to finish the remodeling I read operations, such that we were not able to open them in time, and so that creates a delay in term of new shop openings that delay almost we see.
Quarter four months, but the shutdown shops didn't have that much delay. So that's why you actually see a decline you shop I think our target the serious due to intermodal net ads is still to be around 300 shops.
Oh, we're on the based off of solved the shops from last year.
But.
To the to the Endo years, we look at the at both from the the upsell number shop as well as Woody caused the the.
The sale square meter space, and we actually believe the still square meter space is more important because the money in quite a few Cds right now if we go until you Shanghai with we have about 80 plus shops in Beijing, we have 60, plus jobs, so actually it's difficult to actually add more shops, but it's actually said.
So to increase this the.
The basic thing the space right increase the size of the shop in those cities. That's why you see shop I will start opening bigger shop, and Peter shop, as a more product coming online used to be we only have and then you, but now you see would have and well well you Shanghai Beijing would have R. M. How about.
[music] class you U.S. as always the goal a series so even for eight Reg for you Cds with them.
Strictly regulations, we actually have five six to seven product lines that meet the China bicycle regulation, so that actually requires a shelf space to be it a bit bigger so our focus actually adding.
Our two twofold at this point was actually adding the number shop second for the existing shops to actually increase the arrow increase the space to make a bigger.
To add to answer that I know the lease agreement for certain shops me.
Yeah Fair in Q1, so some of the Tito's Nielsen to take the opportunity to temporarily closed on the shelf so as to avoid paying rental. So that's another reason contributes to the temporary jobs all of our list on them.
We are ready to dawn member sent back to the normal level.
By the end of April so, it's just like one quarter thing.
Okay. Thank you Stan thank you.
Once again, if you wish to ask a question. Please press star one on your telephone and wait for name to the announced.
Once again, ladies and gentlemen, if you wish to ask the question.
These press star, one I guess cellphone and wait for needs to be announced.
Thank you see no more questions in the queue, Let me turn the call back to Mr. Lee for closing remarks.
Alright. Thank you operator. Thank you also participating to this call and for your support. So we appreciate your interest and look forward to reporting to you again next quarter our progress.
Thank you.
Thank you all again this concludes the call you may now disconnect.
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