Q4 2020 Earnings Call
Ladies and gentlemen. This is your operator today's conference is scheduled to begin momentarily until that time, you're like for like can be placed on music cool. Thank you for your patience.
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School year Twentytwenty financial results.
At this time, all participants are going to listen only mode.
The speakers presentation, there will be a question and answer session.
Ask a question during.
This time, you want me to press Star and then number one on your telephone keypad. If you require assistance at any time. Please press star zero I wish I like to turn the call over Christian Arnell. Please go ahead.
Thank you Hello, everyone and thank you for joining us today mobile user needs you released its distributed earlier today and is available at the IR website, <unk> Dot Magoo gosh, you dot com as well through business fire service.
Before we begin I'd like to I'd like to remind you that this conference call contains forward looking statements within the meaning of section 21. He UBS Securities Exchange Act at night, you 34, as amended and as defined in the U.S. Private Securities Litigation Reform Act 1995.
These forward looking statements are based upon managements current expectations and current market in operating conditions and relate to events and involve known or unknown risks uncertainties or other factors all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results performance or achievements.
Differ materially from those are the forward looking statements.
Further information regarding these and other risks uncertainties or factors is included in the company's filings with U.S. Securities and Exchange Commission.
The company that does not undertake any obligation to update any forward looking statement as a result of new information future events or otherwise, except as required under applicable law.
On the call today from a Gore Mr. Sharks, Chen Chairman and CEO Mr., Raymond along Chief strategy Officer, Mr. and Mrs. waging Ellie.
Financial controller.
Mr. Chen will review the business operations. The company highlights followed by Mr., Paul will discuss financials all of them will be available to take your questions. During the Q1 day session that follows.
Now my pleasure to introduce chairman and CEO Mr. Chen. Please go ahead.
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The past quarter was a highly unusual one oh I would not be your book often business remained a focal point a whole strategy through all the pandemic and it continues to maintain strong growth momentum.
Let me be associate GMP during the quarter increased by 50, 54.1% year over year to RMB 1.6 billion.
91.6 present during the fiscal year 2022, I'm B 7.9 billion <unk>.
Oh Ltd business is now the keep driving force behind our growth accounting for 65.4% of RMB during the quarter and a 46.2 ppas in doing that and how physical year 2020.
Well what came to help coelce improved they'll still skill sets, new tools and how with them with additional supply chain infrastructure as we view this as we viewed leases business onto scale.
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Over the past 12 months active buyers like video broadcasting business continued to maintain steady growth.
Increasing 44.9% year over year, two or 3.6 million <unk>.
The L. BT business continues to generate strong growth momentum and increasing user stickiness.
Active buyers full I wore LP business, what's not me you broke up 21 days 21 days a month lightbridge.
They are 15 days, a repurchase rage reach 86% during the quarter.
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Hi, This is not just one of them.
We are committed to continuously strengthening the connection between users and I'll be be host our community of content creators is helping to highlight each hostess unique personality improve their interaction with users provides snapshot of moments in the showroom.
Were pleased to see many users report their favorite LTB hosts to other brands, which has helped expand and diversify our new user base.
We will continue to be without this functions to attract high quality and talking to users.
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I suppose in year end, a lot better forecasting sector, we have viewed a delicate dedicated system, which we call okay tendencies to internally all over the last four years.
This is a complete ecosystem for live video broadcasting hosts twist dropping.
We quantify the monetization capabilities based on the number of fans number or short video they release and a historical sales data.
From there might be to market will house for helping rooms.
And therefore, we provide them with different tools and incentives so that they can grow you get more systematic manner.
BB host somewhat like commercial properties once established they can bring a steady stream of revenue for themselves and to pull the pipeline.
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Well the outbreak, hoping notching up this year has been a test well then Tocumen society.
It has no spare then how Chinese patchy industry.
Tens of millions of closing practitioners have been devastated.
Many comment batteries have been shutdown due to the pandemic due to the world wide spread of called me 19.
Contract sports restrictions and sharp declines in domestic cells have made it difficult for common countries to operate profitably.
Business activity in the wholesale marketing going Joel and other places has dropped by 40% and traditional offline apparel margins are looking for ways to serve boxes crisis.
Despite the disruption however, we know process also creates opportunities.
Lobby lots of video broadcasting helped merchandise to reach their customers collect method small orders and bypass middle name was transparent pricing.
Oh fly apparel suppliers, all embracing this often see.
Despite the price criticism from wholesale market practitioners, we observe that they became the biggest advocates for our VB during this quarter.
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That's the industry evolves Moca is best positioned to capture this option too.
Our business model is space home care, well operation and the tight control of the supply chain.
We have strong preference.
Towards lunch and partners that have great assets to products and it would breached them was whos.
And the most relevant said offense.
Through active exponential Brendan.
Got a categories in the press ranges, we have made sufficient mid on significant progress without port offerings in the spot in the last a few months.
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<unk> are developing stronger bonds was the you was our users to quality products.
Empowered by the pipeline.
Yeah addition, we haven't developer or the loan system, which I will host can select thank you read to that brought us from the support former supply chain directly.
This system, clearly empowers them and that's celebrate their growth.
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So koby Notching outbreak has made it difficult for many strong offline apparel brands they reach to us when they had buda comps in the imagery and the shops that were shut down with no business visibility.
We're deploying to I'll be brand strategy being a timely way to enrich our supply chain with apparel was branded apparel products.
Well Mpower brand partners with dedicated LPV host with exception of commission fees.
For example, we have achieved more than 40 million on B G. M. B from our Nike and Adidas dedicated cells on March 27, and that was only sells for one night.
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We believe the worst is now behind us and we are seeing the might either at the end of tunnel going forward. We remain committed to deploying the best in class L. BB ecommerce strategy Expending would line up of our SVB host and improving the quality continuing to Buda supply chain researcher.
Extending our brand partner strategy.
We will achieve better synergy between I will kill house and supply chain partners.
Very confident that well ideally positioned and on the truck right track to capture the massive course potential.
LTB E Commerce in China presents.
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Thanks, again, everyone, who joined our conference call today. So now I will walk you through our fourth quarter and the fiscal year 2020 financials.
We believe year over year comparison, he's the best way to review our performance.
Unless otherwise stated all percentage changes I'm going to give you will be on that basis.
Just reviewed let's review the financials first.
Well good due to the figures for the fourth quarter, obviously attorney 21st and followed by not of the fiscal year 2020.
Oh, just before the 12 month period ended March 31st 2020 was RMB 70.1 billion, which remain stable year over year.
Oh focus on growing the Jambi from my view broadcasting, which has increased 91.6, because and doing the same period to 7.9 billion.
Oh Baby business continues to grow as a proportion of the total Jim be any decision. It is now accounting for 65.4% for the fourth quarter and 46.2 present for then how physical year 2020.
Active buyers of I'll be business, not Stockmans grew 44.9% to 3.6 media.
So that's now tend to revenues.
Last quarter total revenue coming I don't I'm be Walla Walla nine media a decrease of 45.3%.
But this was primarily due to a 43% decrease in the commission revenue and 74.4% decrease in the marketing revenue.
The commission revenue decreased to RMB 66 million.
Primarily due to the impact of coffee 19, Danny.
Including the cancellation of orders as a result of logistics disruption in February.
Weakness in the fashion and apparel category.
And also our way exemption of commission fees for the brand merchants I thought we support.
Commercial revenue from the L. Baby business, However grew significantly and it was a mine was the continued strong growth thing the LP be associated Jim beam.
The L. Bebe business also continues to generate the stable commission rate.
She was however, partially offset by a slowdown in the marketplace business.
[noise] marketing service revenues, which is mainly generated from our maki marketplace business unit decreased to RMB 18.2 million, which is primarily due to the outbreak of koby Notching pandemic.
Restructuring of our business mix.
Which is out did was shows how would you told me I effort to develop out would be the business.
After the revenue I will now walk you through our major cost and expense.
Cost of revenues decreased slightly by 4% to RMB 58.6 media.
From RMB 61.1 media in the same period of fiscal year 2019.
That was primarily due to the decrease of Payman handling costs and I too would they did expense.
Sales and marketing expense decreased by 56% to RMB 78.2 million from RMB 178.2 media into the same period of physical 2019.
And that was primarily due to optimize the spending on user acquisition and the branding expense.
R&D expense decreased by 42.6%.
To RMB 32.8 million from RMB 57 to 57.2 medium in the same period of physical year 2019.
I'm really as a result come over to my decision.
<unk> expense decreased by 75.5% to RMB 11.5 billion from RMB 46 point Amy there he was in periods of fiscal year 2019.
Primarily due to reversal of share based compensation expense as a result of the heck how optimization.
Our multichannel of intangible assets increased increased by 93.5% Tri be 87.1 million brine be 45 media in the same period of fiscal year 2019.
That was due to an increase in dominant shopping tend to buy assets recorded as a result off the business Corporation as a business Corporation agreement by most who enter into was 10 cents, which became effective from April 2019.
Loss from operations was RMB 149.1 million net loss attributable to mobile was ordinary shareholders was RMB 1.11 41.9 million.
Adjusted adjusted net loss was RMB 79.3 media.
Basic and diluted loss per head, yes, why and the 1.3.
Adjusted EBITDA was negative RMB 83.6 median.
That's now moved to the financial support the entitled Physical year of 2020.
Total revenue coming at the RMB 835.3 media.
A decrease of 22.2%.
The commission revenue coming I did RMB 438 point Threemillion, a decrease of 13.7%.
The maxing is marketing service revenues can mean, I'd RMB 438.3 million a decrease of 38.6%.
This was primarily due to the restructuring our focus is mix towards I'll be business I know so the outbreak of coffee 19 basis quarter.
Cost of revenues decreased slightly by 6.4% to RMB 293.8 meeting some marketing spend decreased by 17.6% to RMB 613.2 million, primarily due to our transmission spending on optimizing.
Pending or use acquisition expense and the user incentive program.
Which was partially offset by an increase in branding and marketing spending.
R&D expense decreased by 27.6% to RMB 171 plane Blunt median jernej expense decreased by 23.9%.
So loss from operations or together was RMB Dawn two to 2000 as 2000 72.9 million compared with last operations off.
574.2 media individual year trendy 19.
Net loss attributable to Mogas ordinary shareholders was RMB.
2000 223.6 media.
This was primarily attributable to a goodwill impairment incurred which was associated with the weaker than expected synergies created by the acquisition of maybe walks.
In February 2016.
Sure for him to realize synergies was in part due to the repositioning of the company's strategy towards building, a Q out driven into active E commerce model as well as increasingly competitive market environment.
In addition, we'll have a sizable increase in the opposition tangible amortization of intangible assets as a result of a b C. A business cooperation agreement that most who has entered into with Tencent, which became effective from April 29 team.
Well have also recorded a RMB 114 median loss probably Investee company, we shop, which was close at the end up last year due to strategy reasons.
Adjusted net loss was RMB 414.2 million basic and diluted loss per ideas were RMB 20 point 40, 2020 point 45.
Adjusted EBITDA was snack to RMB 320.1 media.
We continue to closely monitor the blogging situation in response to the outbreak of Colby 19.
Lets condemning quarter has accelerated digital adoption and transformation within the Chinese fashion industry.
Question, Brent and supplement foreigners I'm bracing LPV as the new form of cells.
Okay, well driven ecosystem, that's best position and are prepared to meet their demands.
We have clearly reach an inflection point in.
I'll be business will be our main gross driver going forward.
Well continue to provide differentiated personalized an immersive shopping experience for all customers.
So Christian was that what we'd like to open the call for QNX.
[noise] at this time, if anybody has a question. Please press star one on your telephone keypad.
Then that would be star one on your telephone keypad.
Wait a moment to consolidate given a roster.
Your first question comes from Charlie Chan from China Renaissance. Your line is open.
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Sure.
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Actually I point, you got someone gets who want to find out what the night and find out do well celestial sandwich and I shall I take that holds up what we thought it because oh, yeah I'm not sure that's altogether.
Oh, Thanks for taking my questions. My first question and answer regarding the strategy also.
I will send the new futures so as far as I can't see there are three ways to continue to extend your Jim be from the LDP business, which stumble on increasing the I mean continue to recruit new hosts far above cost.
So that you can't more people joining this business and number two is increasing the lens. So broadcasting by each hosts and also number three in increasing the efficiency of the brought forecasting sales, which means in increasing the G.M.D. hurt our generate gets from this business.
So we think it's three which one do you think is Youre also the focus of in near future and how do you gauge it out or how do you evaluates the arlene or return from investment in this business. Thank you.
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Okay sure I were just a I would just briefly translate job truck sensor. So so basically we are well being doing that will be business before I finish overtime loss for years and apparent to us as Charlie mentioned, it's very it's very very important that do we need to increase the number of whos on the Jewish jump there, Okay show and.
<unk> and an efficiency of the a healthy I'll be brief sometimes we actually we think all this LTB host actually fairly very diligent and we worry about their health and the sustainability.
So we believe that onto improve the LTB efficiency is the is the critical.
Hi, I would take so on how to improve the efficiency web two ways number one it's the supply chain empowerment. So because of all the individual host. They just don't have sufficient capability all know how old resources all connection to two Butte.
To be.
Solve it insufficient supply chain.
So we can help them on to introduce brand products to introduce original factories to introduce all the native Internet kill L brands.
So that they can't have been very hopeful support from the supply chain infrastructure that we provide.
The Best example, which was quote is the Nike Adidas night, we had in March of these your Oh, we had a recorded sales of 40 million all in one night and that was because of the Nike and Adidas Hum, Although Q else Oh, all platform that probably.
Not capable of sourcing these two brands, but we mobile as a platform we could do that so not so that's a huge value added we can provide to kill I was to improve the efficiency.
And number two is about the proprietary traffic behalf.
So for all the on kilos, we are developing and we encourage them to develop their own proprietary traffic within mobile within the mobile app. So through the through the because the fans will follow them for their timeline.
Entered into the chairman with them and have a stronger emotional bonding wisdom was that was the hosts was the Q house.
Because of this very strong bonding and emotional connection.
Well I can't easily all can better monetize.
Their fans.
I am more efficient and effective way, so supply chain empowerment and the proprietary traffic expansion on two keys, we think can improve the efficiency of probably be.
Okay, maybe operator, we can tend to the next question.
Yes, if anybody has a question. Please press star one on your telephone keypad.
Okay and that would be served one on your telephone keypad.
Your next question comes from Lucky Lau from AJ asset management. Your line is open.
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[noise] operator, maybe we can move onto next question.
My Hi, cute kinnison, Okay me.
Yes, I can hear your yeah.
Yes, I asked the question on the liquidity.
I think Oh wait liquidity is not enough. So it is.
Is it enough for us to do Dutch share repurchase age he Patrice pen.
Oh sure. Okay, maybe I can take this question, Okay I'm old liquidity, we believe that we out we are build out of the company. Okay, Oh baby business, especially is growing very fast so the market as the as the market overtime. We are realizing the value of the company and more and more come more my investors.
We'll be well be pulling us so liquidity is not really all concern and we launched the share repurchase plan, because well view that our share price currently is under <unk> undervalued I want to use the we're going to deploy companies capito to buyback of shares and two to two.
Two.
Number one to show to send if our strong message that would do beneath the company's undervalued and number two.
Good evening. This is also very sensible thing to do a from a company you capital Treasury management perspective.
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So maybe let me translate the question. So I think the question was Oh, we provide base pay to the K Laos, All this program and the bad create any finishes distressed with company is that right.
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Oh sure maybe I will answer the first part of on so first off so basically we are the pioneer of that will be business and where spend out four years are dedicated to develop and a two to onto an established a complete ecosystem will that be defocusing and at the Ponyo. This industry we know.
We have accumulate a lot of know how throughout the in house supply chain, we have viewed as a platform. We have the E. Commerce closed loop system, but have I team felt infrastructure. We also have the financial service I can support them. So we'll have a very full spectrum system that can support them, but going forward, we do believe that.
We want to dedicate resources to two parts number one in supply chain. So Patrick corners, Oh, I think which we have we have leverage a lot on that and number true number two is about the incubation of coelce. So Q I was effectively salespeople of our platform. So the extremely important instrumental tool it sucks.
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Looking very closely with a lot of some punch in partners, who want to work with the original factories on especially those batteries that provides okay, well I guess K driven native Internet brands.
Because this brands are most well received by our customers and a apparently because of that we all our customers like these close and we want to provide very strong better decision by cutting off all the middle name Middleman Middle man in the movies in the supply chain so working.
What was the factories Darcy and they can ship the close all from countries Htwo and customers.
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I see so you've got these outcomes, you'll see a lot.
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No.
He has taught us a lot of both.
Oh people systems.
Its own on the second profile the incubation health care out. So we believe that not just not just the sales of the of the company, where we want to we want to makes them a once you incubated more quality for I guess more.
Professional close so they have a lot of professional skills they have potential to become the superstar mugu. They can become the brand curator or the brand owner of many fashion brands all on mobile and though they count no just sell the protos, but they have to <unk> they have the capability to develop.
And the two to two incubate new put us on their own. So this space pays really painful their high potential we would like to work with them. When next three to five years grab a fairly long term dedication to the scale house.
And the of course, the base pays to attract talent, but majority up there all of their income going for will be steel from the commission because commission that yes to that veto focusing host a will help them too to grow and once they become establish our most of the revenue or most of the income that huh.
Our fuel from the from a sales but back to question.
Third dedicated to develop a long term relationship so how else and this base pay does not create any financial distress to us.
And we Oh, we believe this is all where.
It's a very important critical launching investment we can make.
How about two or why didn't I wouldn't equal one team.
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No magic I found out to figure it out you know how to.
Okay.
I think you're lucky.
Your next question comes from Charlie Chan from China Renaissance. Your line is open.
Okay.
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Looking at Suntrust.
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Hey, Charlie up breaking up I. Thank you.
Okay, Okay, let me now.
Yeah, it's better it's better now yeah.
Yeah, It's all right yeah.
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I I notice that there was no substantial a cup CNB sales and marketing expenses in the past three months.
Both in absolute amounts as well as a percentage of revenue. So I can you give me up.
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How does it is easy so how do we also see while not that's out there are a little with your go to time, yes. The sound I'll, let you talked about why this is all on the policies you will get into that so.
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Okay.
Charlie So I would just quickly trusted answer for the fall for the audience. So basically number. One is is that were switched the model from traditional ecommerce to two more focus on that you bought costing ecommerce and apparently the change the module has decreased as a proportion of the off the total Jim be pie.
And not readable hosting customers are very very sticky.
They are extremely sticky so that they spend 21 days out of a month to watch VB and their 15 days repurchase rate is 86% their ARPU has been increasing and that the ARPU is much higher than I've ever seen in being though traditional E Commerce model.
So was that we can see that oh, the not be duplicative. <unk> is is is actually more is more of our unique economics.
It's less about future in a massive traffic to a bit too to a few percent of buyers. So the model has a switch off and number two.
As we mentioned, although it will be host that just like commercial properties that just like commercial properties not like a stores that like a flagship stores will move so our focus going forward is actually to deepen our operation and deepen our corporation with them help them to have more targeted.
<unk> user on and the choppy acquisition strategy.
So that somebody because it would have for targeted marketing both of these for their fans and for their for their respective new users. So I'll use expense actually came down.
In the future or do we think it's possible that would go up again, yes, it's possible would do all that possibility. However in the future we need to carefully considered.
The the accuracy of acquiring these users because the traditional model Oh, the traditional marketing expense, which is the traditional way off because acquisition doesn't really apply to the new model off LTB. So we need to be very very selective and that you are very targeted them.
Cutting.
Hi, this is yet thank you.
Yes.
I have no further questions. Thank you.
I turn the call back over to.
Mr. are known for closing remarks.
Oh actually looks like we have Veronica from China, and it sounded like could you comment or question terrific.
Waiver on a kitchen your line is open.
Oh I tend to go around women.
So let me tell when she comes down south at home, but either way I think why you to both on and off Oh.
Well, we got one think when they don't make like if you break down like when you get a commercially and I do feel on the called <unk>, what's that can actually boy shop, I'm Lucky because people want they want the topline data look I'm not going to change is that now I'm sure quick on board or two quick I wont work. So I just want to know Gorgon payout.
Well, John Thomas Thank God that kind of go well.
Public to walk or not.
Thank God, nickels, and Dimes and one okay.
No. It would have you had to tell them that I'm glad you may go up making it does not go make I guess, so our people. They got can you don't see chairman.
Andrew was actually got a do not so how do I guess I'm talking about why that's where it takes a yellow book.
Thank you once your Hong Zhao Hogan.
It's all at the time allowance.
Well My first question is regarding to the El <unk> nuts and could you. Please give us a breakdown.
Great and within that person should help top tier Hello.
Please quantify that contribution from the top tier outside the company.
And well the credit trends going forward.
Well my second question regarding to the guidance for Q.
Thank you bye.
Probably about the topline growth.
Yes.
This year more about your pipeline for you.
Locking mentioned Wong.
Oh, maybe vernakalant just so I would just on ticket question first so fuller brick Davos right. We actually don't disclose first of its been number that home the breakdown of the of the of the on demand level post, but one thing I can tell you is that the.
Because why in that fashion ecommerce business right. So the the monthly fat or I guess the concentration risk philosophy is much lower.
Our customers do value on different type of Influencers as a different publishing for instance, who actually open them up to various fashion fashion choices. So that's number one oh, we're always brinser is actually quite diversified Oh user taste also very diversified.
And Oh, we have seen that the on the top the Apple overall would not be too because the host I'm showing very strong efficiency. So that they will grow very very fast, but because of a supply chain empowerment I know a lot of logistics infrastructure help support which will buy talk a house.
The middle part or the over the long tail host also growing accordingly.
We have is constant community so that each and every one of them have their voice to be hurt. So this is a this is a very important differentiating factors that differentiate us from other not be your booking platform.
And so so that she does to your first question and it was second question Oh, we actually don't provide revenue guidance had his point, but as I mentioned earlier I think were very confident that we we reached an.
Inflection point.
I think China ecommerce kinda fashion, you Karmas has generally region inflation point, China has reaching inflection point.
A lot Bu Pos broadcasting has accelerates the and how societies adoption of new foremost house. So this digital adoption.
The digital transformation would change on deeply the supply chain, all Chinese, especially industry and we have seen that one more people I'm breaking the squam, we'll have more hosts joining us well have more supply chain. Upon is joining us. So I think we're confident very competent about future. So.
We were just on a child for best to see on too hard to see how we can embrace these future.
Oh, I keep saying Oh I can certainly helped.
Okay.
Yes, please picking them up.
Oh, Thank you Craig.
Okay. Thank you laid out so they are diagnosed ways I can tell what kind of like like makes yesterday.
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Thank you I just wondering you probably got wondering if something comes back.
Hi, Alan I think that once a well my questions regarding to date.
Hello, Patrick we could you give us more calling on the recovery process of apparel category, that's like female apparel lots of quite soft.
Thank you.
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Or people prefer to buy nearly a second calls in Seattle.
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John.
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I think a long enough.
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Uh huh.
Yep.
Maybe I would use oh it just so we just saw Justin's question I'd, probably add some commentary about the macro.
Macro trend of China, So I think for the power industry right were seeing that in a short time of course is going to be impact affected by the but by the pandemic by in the medium term I think it's more related with the Chinese GDP and longer term. It has nothing to do with no was the Chinese culture and trying to see ecosystem. So in the.
The last quarter, we are seeing that Oh, maybe from different from various sources.
Apparel industry has decreased by 40% and the cosmetic beauty products has decreased by 30%. So that's basically of information, we're getting from all different kinds of the social sweating.
Oh.
Yeah.
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Okay, Hi, John.
If I mean.
It's only.
So we think that or thought about vaccines, the shock as alcatel bundle, which I'll have Joe facility that ducts.
<unk>.
Oh, Okay. Maybe for next two quarters is actually quite difficult Boston predicts X X number of a one size of that we believe that we were first supportive, though Chinese governments policy on social distancing because it's extremely important to how you know.
We want to stay healthy and I real estate.
They healthy end to end the to make sure that our economy can recover sometime soon and Oh society won't be affected as much. So that's very important we support is all the government's policies.
In addition to support the government. We also closed the work with all the selection foreigners brand partners. What was that you know value would be deep that we want to help them too we launched well onto help all corners to achieve to survive. This crisis at same time, so it's very difficult for me.
To predict what's going to happen next two quarters, our child care about her back to two to talk with them.
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Yes, so Lisa it's always nice like Oh really.
Oh, yes all.
Okay also either.
Oh, yes, so in the medium term, we believe the GDP has a bigger role to play in a fashion industry because the Chinese consumers, who are not be able to pay for much grim premiums going forward or they would probably care more about quality functionality well I guess.
The value for money.
Part of the point is more so.
Local popplewell. So what was batteries was on the original producer off all this unclos instead of instead of Oh on people, who actually adding more brand premium to the protests well what was the original producers to ensure that the port as hot as they do deeper to their customers they are value for money.
And that pricing is very transparent and we cut off all the middle man.
This is also a very good news for all the came out trip and ecosystem.
Driven ecommerce.
So that's one though.
Oh, that's on wall.
Yeah, that's a Dutch house.
Since I was hoping they'll hospice itself is a.
Hi, watching the that's also.
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So you had said.
He said himself and Gulf.
So all in the long term good east side that are trying to its culture will be a third cobra impact being being the fashion into mass mass market trend, especially market and as we believe that a lot of fashion designer brands will be popping up over China, and we mobile platform.
Yeah, well have the.
The privilege to two onto focus them and we believe that on lumping princes will be incubated Oh internet platforms, and we want to bridge them was a bunch of partners have been breach them was batteries. So in the short term l. BBB out would be business is very important voice pain long term.
It's very important that we were very mine the coelce, representing the next generation of new brands in China.
So just to sum up our view of the Chinese fashion market going forward in short term of course, it will be affected by condemning.
But in the medium to long term on kinda sturdy p. and Chinese culture will be on demand factors striking Ford.
I see that sit here and I see doctrine.
Oh citizenship.
Operator on to have more questions on the flow.
I have no further questions on the on the Q and a portion I turn the call back over to Christian Arnell for closing remarks.
[noise], thank everyone for joining us today, if you have any questions or comments. Please don't hesitate to reach out to the Mcguire team that concludes the call have a good night.
Thank you everyone here, but can go.
Thank you everyone. This will conclude today's conference call you may now disconnect.
[noise].