Q4 2019 Earnings Call
Greetings and welcome to the China Automotive systems fourth quarter 2018 conference call. At this time, all participants are no listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded I would now like turn the conference over to your host Mr., Kevin <unk> Investor Relations for China Automotive systems, you may begin.
Thank you everyone for joining us today welcome to China Automotive systems 2019 fourth quarter conference call joining.
Joining us today are Mr. cuisine, Wu, Chief Executive Officer, Mr., James Lee, Chief Financial Officer, Oh, China automotive systems.
They will be available to answer questions later in the conference call with the assistance translation.
Before we begin to remind all listeners that throughout this call. We may make statements may contain forward looking statements forward looking statements represent the companys.
Assumptions only as of the data this call.
The results a copy of actual results could differ materially and those contained in these forward looking statements.
The number of factors, including those described under the heading risk factors and the company's form 10-K annual report where the year ended December 31, 2018 as filed with the Securities Exchange Commission on March 22019, and another documents filed by the company from time to time with the Securities and exchange coming.
Sure.
The company expressly disclaims any duty to update any forward looking statements made in this call whether as a result, when new information.
Q3 events or otherwise.
This call I will provide a brief overview in summary financial results for the 2019 fourth quarter and 2019 fiscal year.
Not yet well then conduct a question and answers actually.
During 2019 fourth quarter financial results are unaudited and fiscal 2018 your financial results are audited and both periods our reported under U.S. got.
For the purposes of today's call I will review the financial results in U.S. dollar.
Yes.
We will begin with review of the recent dynamics of the automobile industry in China automotive market position.
For the fourth quarter of 2019, China's GDP was 6% unchanged for the growth rate in the third quarter 2019.
For the 2019 year.
China GDP was 6.1%.
Which was the slowest annual growth in the last 29 years.
According to the China Association of automobile manufacturers C. H M passenger vehicle sales in China, the largest global automotive market.
Down, 9.6% 2000 $19 million to $21.4 million compared with sales in 2018.
This decline followed a 2.8% car sales decreased in the 2018 year.
Including trucks and buses total vehicle sales decreased.
8.2% to 45.8 million vehicles in the 2019 year.
Sales of all car types, including sedans as she leaves and mini vans decreased in 2019 year [laughter] crossover unless you retire register vehicles registered the smallest decline.
6.7% compared to a decline of 10.4% sedans any kind of 18.1% great N P lease.
A sharp decline in sales of sedans, an NPV led to crossover and it's you read vehicles gaining market share.
If you didn't record 43.6% of the Chinese passenger vehicle market.
So the answer is still the largest car segment with 49.7% market share.
With MPV is having a 6.7 because that market share.
Chinese domestic branded car sales declined by 15.2% lost only 2.9% of market share in 2019.
Within these different passenger vehicle segments annual sales of electric vehicles easy and plug in hybrids declined in the 2019 year for the first time.
Sales of new energy vehicles, which include electric and plug in hybrids fell 4% to 1.2 million units in 2019, as the government Cup subs, but subsidies and the second half of the year.
Last year is easy subsidies were reduced by as much as 75%.
With the exact level determined by the region and model.
Reduce subsidies had a substantial impact on the sales he vehicles as the central government wants to reduce the large number easy manufacturers.
Emerging but overcrowded industry.
What to 20.
New energy vehicles sales again decline what 10th consecutive month, according to see A.M. data.
[laughter].
Automobiles.
Sales like just a number of factors slower Chinese economic Ruth 2019 created anxiety about consumers, which wasn't justified by the trade tensions between the U.S. in China.
He abovementioned easy subsidy reduction substantially impacted consumers purchase decisions as well.
Additionally, the first phase of the more stringent national six emission standards began on July one 2019 for gasoline engine powered vehicles.
Dissinger vehicles.
Cities and probably just in the first phase include Beijing.
And Jane Shanghai, Shenzhen, Hi, Joe.
Banking Wando shangdong.
He'd be annually and added.
With this industry climate, our net sales in the fourth quarter of 2019 were $115.9 billion compared to $124.3 million in the same quarter of 2018, 86.8% decrease.
The decline was mainly due to a change in the product mix and lower demand for Chinese domestic brands automobiles in the fourth quarter of 2019 compared with the fourth quarter of 2018.
Well the 2019 full year.
Our annual sales declined by 13.1% to $431.4 million in 2019 compared to $496.2 million in 2018, due mainly to lower sales of legacy hydraulic products and total E. P. S system sales. However, our headlong, okay why be subsidiary.
It's primarily supplies passenger vehicle, yes products had net sales of 70 $1.70 $1 million.
I was in 18 compared with $23.4 million.
For the year ended December 31 2018.
He P.S. sales represented 19.1% total revenue in 2019.
It's finding <unk> sales also reflected the transfer of art Es business into our headlong cable I'd be subsidiary.
Sales of hydraulic steering systems to our North American customers were only down slightly in 2019 compared with 2018.
Even though overall sales vehicle were soft in North America.
Our headlong kyi be joint venture with Japan Me why be company limited.
Concentrates on providing advanced yes systems or exclusive supply contract with great Wall Motor company like Air systems.
For their new.
Oh are a are 150, all electric small vehicle demonstrates once and capabilities of our air systems.
The stricter national six emission standards were implemented on July 1st to improve air quality due to the AD technology National six compliant vehicles typically are sold at a higher retail price.
The standard gets progressively being implemented nationwide during the 2020 years with even stricter national six be become a new stand ready in a few years.
<unk>.
[laughter].
We're pleased to report that our 51% on joint venture with he'll song Electric Company limited.
Sung hwan motion Mechatronics systems Company limited successfully completed its phase one development plan for small Powerpack brushless motors or it's a high RCD.
C S and piece last D. P. P S products.
In June 2020, our high Archie he'll song joint venture will commence mass production of these proprietary brushless electric motors.
In addition to the improved reform several projects. These small electric motors provide another sales channel for the future.
In 2019.
Let's say I see Nexus and actually we in commercial vehicle subsidiary, let's see I see moger.
Also upgraded us to become a type a preferred supplier you see excellent quality and performance of our products.
Other new products in the development of steering for the Daily then for Iveco S.P.A. in Europe.
Well, it's because like this is our presence in the European auto market. The daily Van is one of the most iconic Lord light duty commercial gains in the world is more than 3 million units have been sold and over 110 geographic markets.
Also we began shipments in 2019 into your for the Italian made see a fivetwenty.
All wheel drive plug in hybrid electric vehicle model.
In the Americas.
Global tier one customer headquartered in North America made us the lead developer Ray new re circulating ball.
RCB steering system I batch RCB program could be used in their future autonomous vehicles.
Yes.
Further penetrating the south American markets by winning contracts with the read just region, a largest OEM fiat's Chrysler automobiles and Andy.
I see a south America.
Ambition.
In 2019, the sale of our Jay for 36 series N series products approached 10000 units per month.
And we had been selected to supply in new product to see a deep models starting in the late third quarter.
What each one.
[laughter].
Thanks to our product superior performance, our headlong, Brazil subsidiary was nominated as one of those three cats is fine.
For South America, 2018, best supplier by F.C.A., South America as was denominated.
For the chassis supply or the year.
The 2018 year, our operating income was $6.2 million versus an operating loss.
$2.9 billion in 2018.
We streamlined our selling and research and development expenses become more efficient in 2019.
Diluted net income per share was 32 cents in 2019 compared to diluted income per share of eight cents in 2018.
As of December 31, 2019, total cash cash equivalents pledged slashing short term investments were $112.2 million net cash flow from operating activities was $30.3 million into 2019 fiscal year.
What are the 2019 year, a total of 452559 shares were repurchased four consideration of $1.3 million underwrite repurchase program approved by improve on December 2018.
[noise] [noise] into first quarter of 2020, the Kogan 19, panic struck China and being headquartered in <unk>, we were affected.
Beginning of the Chinese new year in late January until mid March our operations were interrupted.
We're pleased to report that our production centers in the Wu headlong.
Uhhuh on lead Providence, brilliant 10 long Chan young Li on Province, and Chunking Standalone Jungling City.
Full operations in mid March after lock down restrictions were lifted by the respective local governments.
We're presently operating at full capacity, that's all facilities, including <unk> and we reopened go one headquarters younger temporary relocation to Jinjin city in March.
The current Alaris, that's had an impact on the Chinese economy in auto production first quarter or a 2020.
Yeah look for 2020 years cloud isn't challenging we have taken action to position the company to take advantage of new growth opportunities across diversified vehicle markets and both passenger and commercial vehicle markets.
That's the Chinese economy in auto production recovers, we believe the Corona light risk impact is gradually we can even in the second quarter and we may regain sales growth and following quarters of 2020.
Going forward there are several promising policy for the Chinese economy in the auto industry.
Central government initiated a tax cut improved regulations and loosen monetary policies.
New incentives have been implemented to stimulate the purchase a lot who's in rural areas, including the subsidy to purchase nucor's and during the 1.6 leaders are smaller.
Subsidies for electric vehicles are now further extended.
The U.S. Chinese trade agreement, so that helped business confidence.
In fact, Chinas automobile sales in April 2020 weeks 2.1 million units up 4.4% in the same on a year ago first monthly sales increase since June 2018.
[laughter].
Now, let me review the financial results for the fourth quarter of 2019.
Net sales or what kind of $15.9 billion.
Fourth quarter of 2019 compared to 124.3 million.
Same quarter of 2018.
The net sales decrease was mainly due to a change in the product mix and lower demand for Chinese domestic branded automobiles in the fourth quarter 2019, compared with the fourth quarter of 2018.
Gross profit was $16.8 million compared to $11.4 million in the fourth quarter of 2018.
Gross margin.
Well go through 2019 was 14.5 per cent compared to 9.2% in the fourth quarter of 2018.
The increase in gross profit gross margin.
It was primarily due to a change in the product mix and reduce costs compared with the fourth quarter of 2018.
[noise] gain on another sales was <unk> point $2 million compared to $1 billion into fourth quarter of 2018.
So when expenses were $3.8 million into fourth quarter, 2018, compared to $4.9 million into fourth quarter 2018.
The decline was primarily.
Due to better cost controls with lower personnel cost and reduced transportation expenses related to decrease volume.
<unk> expenses represented 3.3% of the net sales in the fourth quarter of 2019 compared to 3.9% in the fourth quarter of 2018.
[laughter].
General and administrative expenses GNS decreased by 9.7% to $6.5 million from $7.2 million.
Fourth quarter of 2018, DNA expenses represented 5.6% of net sales in a fourth quarter of 2019 compared to 5.8% net sales in the fourth quarter 2018.
The decrease in DNA expenses in the fourth quarter 2019 was mainly due to improved cost controls.
Research and development expenses, R&D expenses were $8.6 million into fourth quarter 2018, compared to $10.2 million in the fourth quarter 2018.
R&D expenses represented 7.4% of net sales in the fourth quarter of 2019 compared to 8.2%.
Fourth quarter of 2018.
Loss from operations was $1.9 million into fourth quarter of 2019 compared to a loss from operations or $9.9 billion in the fourth quarter 2018.
The much reduced losses, mainly due to higher gross profit and lower operating expenses compared to the fourth quarter of 2018.
Interest expense was point $9 million into fourth quarter of 2019 compared to $1.3 million in the fourth quarter of 2018.
Net income attributable to parent company's common shareholders when $1.7 million in the fourth quarter of 2019 compared to a net loss attributable comparable companies common shareholders the $3.2 million in the fourth quarter of 2018.
Diluted income per share was six cents in the fourth quarter of 2019 compared to diluted loss per share 10 cents in fourth quarter of 2018.
Weighted average number of diluted common shares outstanding with 31 million 333740 in the fourth quarter 2019, compared to 31 million 645510 in the fourth quarter of 2018.
No go over the 12 month financials annual net sales was $431.4 million in 2019 compared to $496.2 million in 2018. The decrease was due to lower sales of legacy hydraulic product and total EPS systems.
Our system sales represented 19.1 or total revenue in 2019 compared with 21.7% in 2018.
Net sales of nickel steering systems to the company's North American customers were down slightly in 2000, making compared.
2018.
Gross profit in 2019 was $63.4 million compared to $65.4 million into 2018 gross margin.
Increased to 14.7 present from 13.2% in 2018.
When you do the increased sales of higher margin products gain on other sales mainly consisted of none of them at retain from rental income gain on disposal of intangible assets.
The sales or property plant equipment and technical service revenue.
What do you ended December 31, 2019 gain on the other sales amounted to $5.1 billion compared to $3.9 million in 2018.
This increase was primarily due to the increase in gain on disposal of property plant and equipment.
No when expenses were $14.3 million in 2019 compared to $18.9 million in 2018.
Jamie due to lower net sales, resulting in deep decreased personnel expenses and marketing expenditures.
How many expenses represented 3.3% net sales in 2019 compared to 3.8%.
In 2018, DNA expenses were $20 million generally consistent with the $19.8 million in 2000 any.
Yeah, and <unk> expenses represented 4.61 that sales in 2019 compared to 4% net sales in 2018.
R&D expenses were $28 million in 2019 compared to $33.6 million in 2018, R&D expenses represented 6.5% of net sales in 2019 compared to 6.8% of net sales in 2018.
Operating income was $6.2 million in 2019 compared to an operating loss of $2.9 million in 2018, the changes primarily due to lower selling and research and development expenses in 2019.
Interest expense was $3 million in 2018, generally consistent with $2.9 million in 2018.
Net financial income was $2.5 million in 2018, compared with $2.2 million.
In 2018 due to increase in interest income.
Income before tax expenses in equity in earnings of affiliated companies was $7.6 million compared to a loss.
For income tax expenses, an equity in law school affiliated companies of $2.5 million for 2018.
This increase is mainly due to the higher operating profit.
Net income attributable to parent company's common shareholders was $10 million in 2019 compared to net income attributable to parent company's common shareholders of $2.4 million in 2018.
Diluted net income per share. It was 32 cents in 2019 compared to diluted income per share of eight cents.
In 2018, the weighted average number of diluted common shares outstanding was 31 million.
458926 in 2019.
Compared to 31 million 645594 in 2018.
Hello, going some balance sheet cash flow eggs.
As of December 31, total cash Oh I'm sorry.
He went 2019 total cash and cash equivalents.
Cash and short term investments were $112.2 million total accounts receivable, including notes receivable were $233 million accounts payable, including notes payable were $186.7 million and short term bank and government loans were 46.6 million though.
Total parent companies.
Stockholders' equity was $289.2 million as of December 31, 2019.
Compared to $285.9 billion as of December 31 to 2018.
Net cash flow from operating activities was $30.3 million in 2019.
During 2019, a total of 452559 shares were repurchased.
I agree consideration of $1.2 billion under our repurchase program approved on December 15, 2018.
We also tax paid cash of $34.4 million to acquire property plant and equipment and land use rights during the year.
For the business outlook management like revenue guidance for the full year 2020 of $360 million.
Just argues based on the company's Crane view of operating the market conditions, which are subject to change, especially in light of the <unk> current alliances impact on the economies with China and the U.S. with that operator, we're ready to begin the culinary.
Thank you at this time will be conducting a question and answer session.
I'd like to ask the question. Please press star one I knew telephone keypad, a confirmation Tom will indicate your line is in the question can you maybe first started Q if he'd like to remove your question from the Q participants using speaker equipment. It may be necessary to pick up your handset before pressing the star key.
Our first question comes from line of William Gregozeski with Greenridge Global. Please proceed with your question.
Hi can you talk about the revenue guidance, how you arrived at that number and what you're expecting.
From international sales and <unk> sales for the year.
Okay. That's all my questions are within today do you want Tc saw a woman London cannot Jewish element or hardening Aarding and you whether you saw a gun don't get gels shop Corky <unk> type.
<unk>.
Yes.
Oh.
And give them until it's a good yeah somebody with a lot me I'm going to need so nothing huge saatchi, even though it's it's again a good did you do you do get koby 19, like <unk> or small since I'm not shell. So this will talk about as much.
I'm not seeing quite a lot more <unk> that could be shut off the group life and do the simply.
Oh cheat and are considered in treating EG board and probably won't eat skiing. He made you can't make that's shown so let me just want somebody that's probably what you're more muted.
So it's quite.
Like I call them. This will not just once again, a woman or do you do quite yet so about each in fact, they want the old as you get Colgate 19 of in each of <unk>.
So you don't want to do there will be able to quite a quantum and nuclear <unk>.
I thought they would give you yeah, I'm, sorry, I sincerely its job.
How much of yet keeping its probably not quite there.
Yes, with the one that your since again Ah onez either.
What do the assignment to getting quite a home and personal habit. So yeah, you know something Oh.
Oh, good Siemens who couldn't this incident that seemed to be quite a high speed up she like social GM, but today, we p. that's that you'd be a good on that ski Truman it useful shutdown.
<unk> gauging the used when it's all the things keep on their own Susan Cates. My guess on you mentioned that means the guidance.
Okay.
Okay. So our revenue guidance for 2020.
It is based on the.
Current visibility.
For our business in 2020.
As we all know we were.
Affected negatively affected by the coffee 19.
And I mean.
During the first quarter in particular.
The we.
We saw the overall.
Revenue.
It was down about 50%.
In that first quarter.
The first quarter up 29.
Oh revenues by Wandrey.
Laundry and 10 million.
You know us.
But that was up.
Is negatively affected it doing to personally myself 2020 due to the.
The outbreak.
Also.
International sales.
70, Twoa U.S. and Europe also we're in a affected.
During the first quarter.
But there could be 19, so we saw the cells.
These two regions are down about 20%.
[noise] domestically.
Commercial vehicle segment.
We are very pleased to see a year over year increase fall business.
The passenger vehicle sales.
Sales, we see a.
It's a remain very soft.
So those are a general.
Picture with seem to.
2020.
Because of passenger vehicles to soften domestic Chinese market, our TPS electric power steering products sell so probably will.
Piece off as well.
On.
The commercial vehicle business are going to hold up a lot better in 2020.
And international business. So we'll have some impact a will continue to digest.
And just.
And also the <unk> domestic China business, well, we'll come back and Ah falling a few quarters.
But first quarter damages.
Quite significant.
Okay, Alright, and the other question I had what can you talk about the supply chain are you there's everything back to normal or are you, having any issues with getting parts or anything like that.
Okay topped out once you show in shell and they'll go unit.
Right.
You just do the Ching call shop. So that's if so how do I love Nikos Simpson away for instance, hollow Nicola will make a meal show cleaned up a solid team called the not though you.
Soil does take a look would you.
Air tickets I eat people that's a good there so let me speak English and I can reach and gear and some variants of the coming in that sort of out of school <unk> I'm not so no guarantee go see different kinds of upon that you bring homes embrace the combing questions.
A male urologic are good yanacocha outcomes and she is not since it yet.
In that <unk> some trends on treatment.
And your cheap and that's what you if you look at them.
Okay during the first quarter, especially the months sofa.
They broke away in the months off Oh February March.
The disruption to the supply chain is this is quite evident we are.
And the muscle starting from as of April everything back to normal. So we are having all the components are.
Coming to our production.
Okay, Alright, thank you guys.
Thank you.
Thank you once again, ladies and gentlemen, if you'd like to join the question Q. Please press star one on your telephone keypad at this time, a pause a moment to allow for other questions.
Thank you. Our next question comes online Robert Polivich private Investor. Please proceed with your question.
Oh, yes, good morning.
Uh huh.
I was wondering about the fuel song Brushless Motors.
Well, what percentage or I guess the question should be.
How do you see margins improving.
From this joint venture.
And how do you see.
The applications.
Throughout the line up Oh.
Steering systems that you produce.
Well these mogas be used for just about.
All applications, you know, including not just eat P.S., but.
Driver assist steering systems.
I just wanted to get a little insight on this.
Sure.
This oh and the puts and Robert to go once you know how the once you should take Oh, one, though let's its you know a hoist some takeoff since I know Soc and she said.
Stands out as soon as you go some of the John Paul.
Yeah. So the whole tissue was why can't you should we should go you taking it was I soiled up from the timing yet.
Touched for them. So I was hoping human not just for.
Yes. So that's how can you sort of systems, all of which I think just jumping a lunch.
Okay.
Yeah, Yeah, you take care.
Uh huh.
I won't be there could be going to not only in two parts to see your friend come talk.
You know is a good each opinions on the one yeah superior and that's usually end up on their.
Ah commonly populations on matches and so they.
So you saw some good cellulite come in Cleveland Kittila, Yeah, I mean, it's about it.
<unk>.
Im sorry, hundreds of millions and I called mutual funds, where you said that.
Oh, sorry <unk>.
That's a good to hear touches upon them. So it's I think.
She has its own to defeat U P S band to get into <unk>.
And she had them we feel like there are some on both sides.
Oh show, so what others are delighted <unk> Jack so.
I'm looking at you didn't give them I'll give you cannot be yeah.
Yeah, So sweet given if you got.
She mentioned keeps all seem all me Sellable Khalid Sheikh <unk> jump when I say, they did that Didnt sound that didn't P.S. incident you.
Okay.
Hello.
[laughter].
Hi.
To your question on the U.P.S. Hisun hoists and a joint venture. This particular, a joint venture. We initially planned fought a.
To come as production in the month of April.
However, due to the disruption of coping 19.
And our Korean technician advisors are a delay.
To the Muslims channel and so we're doing a remote they're helping us doing the remote.
Tune up fall or.
System a production line.
But we all have to.
Wait for a couple more months to be being a the production. So the most of channel will start a production.
On to the application.
The this particular joint venture will produce.
The brushless motor for C.P.S. product.
Oh looking to ship.
30000 units in year, 2020, and that will be about a 6 million RMB for this particular, plus a cautious the motor and Ah It carries a higher gross margin.
And also we're looking to expand and use all of these mode or in a two all all of our S product. So this particular joint venture is a key.
Component.
Yes systems.
Okay. Thank you.
Another question.
So yeah, Chrysler and to show up.
Look like they're going to still merge.
How do you feel.
That merger will affect business.
The China automotive.
Well go once you touched a little.
Hi, Joe to take or.
Hey, I took a slow or you guys hi, This is a high Okanagan Nicola.
Oh show, a clumping, though that Google It took a hoping gender Boston about doing that he always shoes somebody else will even small.
[noise] or what much they're concerned I'm together.
I'm not going to panic and believe that she would equate to listen to how would you care to secure the junior <unk>.
Sure well a man to somebody else will take care.
Chrysler there's a good that's what upon the benefits okay.
It is how the trick backhaul.
No.
He does not mean inputs humbled and that's exactly how novelty new beds again [laughter].
Summing up until the time, that's I don't see.
<unk> <unk> <unk>.
<unk>.
<unk>.
I'm looking forward to such merger will help us expand our penetration into a pillar Jos a global sourcing network.
Over the years, so we have one hour.
A place.
And Fiat's Chrysler.
Two hour.
Impeccable track worker and also well years, we are consistently winning a supply supplier award from Chrysler Fiat Chrysler. So we are very.
Optimistic and I'm very confident.
If that merger takes place.
Between Fiat's, Chrysler and Poeschel, where well be able to expand into post production. So.
<unk>.
Looking forward to today.
Okay.
Yes. This is the [laughter] a unique question during difficult times is there anything.
Possibility that.
He would <unk>, China automotive doing another moderate share buyback this year.
Okay. So let's take the once you should.
This is Jim Inc.
So I assume that's a good thing called shop.
And we'll couldn't uncle sequentially shit quake cool touching yeah hardening gardenia.
I want you to at least once you are needs it doesn't show Israel, Dol Arnie hardly enough sorry.
[laughter] you keep shelf I'm not sure them elements in there, but I don't if you could see wash out in my mind and then that your other since the one.
Not much Union the final my only kishi licenses yeah sure.
And well done since against me I suggest that will me out four clubs and she.
Well the yelled show once you get through their as John said Tonkel Cima sold into the G Block and help me Suyai then down the on that because hug once again.
Sounds young downs, <unk> jumped up a bit its home pultegroups against each and to.
She was asking jot down I guess on Wall Street Journal Sensodyne changing their consumption, sometimes ultimately that's when you get some chief financial Didnt such Oh.
Okay. So.
Well, we have a the current share buyback plan is its still valid until the end of 2020.
In.
29 team, we have completed the purchase of around 450000 shares from open market.
Well, we'll continue to buy back shares in 2020 as long as a week meeting a compliance requirement.
Such as there's a do you have to be in a window to purchase repurchase a share.
There are certain blackout period, we're not able to do that and also in terms of the amount we can buy.
I have to meet a requirement to one less than 20% of average volume and also there are a price description as well.
And the according to the at the regulation, So where we are strictly following the guidance and Oh, the regulatory guidance in terms how to continue to buy back shares.
Its ongoing it's active.
Okay.
Okay. Thank you.
Thank you.
Thank you once again, ladies and gentlemen, if he'd like to ask a question. Please press star one.
Well pause another moment.
Thank you, ladies and gentlemen that concludes our question answer session I'll turn the floor back to Mr. These for any final.
On that.
We thank you for your participation in todays conference call. Please be safe and we look forward to speaking with you again in the future.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.