Q1 2020 Autohome Inc Earnings Call
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A question and Dr. actually followed a formal presentation.
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It's now my pleasure to introduce your host any pattern.
Autohomes IR director there can you may begin.
Hello, everyone and welcome to Oklahoma.
Hi.
Congrats.
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Earnings press release.
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Turning to me that may cause actual results could differ materially from our current exactly.
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What does not undertake any obligation to update any forward looking statement.
That's required under GAAP.
Our press release.
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<unk> and non-GAAP measure most directly comparable GAAP measures.
Oh bearable Autohomes IR website.
Somebody buying back [laughter] recording.
I'm not an archived webcast.
The conference call will also be Lenovo Autohomes IR website I will now.
Oh, Oh, sorry, my Oh.
Thank you I know that Hello, everyone. Thank you for joining us today.
We kick off because we couldn't team with a solid first quarter reporting total revenue of RMB 1.55 billion.
Notably rather you find even if it has increased by 32% the year over year and that contributed to 20% Oh OCO revenues.
Compared.
<unk> revenue contribution of 15% before the same period last year.
The exceptional revenue performance achieved by the utility sector was driven primarily by robust the revenue.
From data product.
Which increases the by over 80% year over year.
In a post quarter.
Total new passenger vehicles, how well by 45% via over here as a result, Oh the coke in 19 outbreak.
And the subsequent extension.
Sanction Oh, the Chinese new year holiday in many cases.
Higher postponed a vehicle purchase plan due to the extensive quarantine measures while the continue the spread though the pandemic around the globe.
Further for a longer period of domestic the containment efforts.
All these factors dissolved if you refer to the lives.
In the near term marketing demand of our customers.
Although consumers remain cautious during the first quarter.
As a containment regulations have been he's being tied to cope with the government stimulus policy the market that began to show a gradual improvement from Apple.
During the quarter.
We witnessed a increase demand.
Our online marketing services as other mix and the dealers that folks from offline to online channels.
Good how should I this trade.
We introduced a suite of data products at a tool for example, we have right I'll intelligent showroom.
The invaded the.
Live streaming functions.
Both of which working design thing has the efficiency and effectiveness of online marketing programs.
Our live streaming channel has been popular among automakers as well.
Since the outbreak of coal that 19 about pick the automakers have delivered a total oh well have different beautiful livestream program. A platform. We also launched a three week breeding virtual auto show in collaboration with China Council for.
The promotion of international trade automotive some council.
After all.
This signature events present.
Presents and attractive.
Hey, that's at attractive marketing opportunity that girl Sal Wow customers at the time when offline auto shows are either delayed or cancer in China and abroad.
About 60 auto brands and the more than 1300 dealers have signed up for them, but.
In addition, as we remain committed to supporting our customers and the industry, we have been offering free trial of our smart instant messaging.
Cool to more than 2000 the dealers.
How strategic approach.
Gary I'll do this and this dry strengthening our technologies allows us to generate additional value to our customers, which your entire will further enhance our market leadership in the Longwood.
During the quarter.
Leveraging our advantages in big data analysis and the industry inside.
Enhanced by the product metrics that facilitates OEM decision, making.
In the first quarter 17 automakers purchase is out there the product offerings.
Compared with eight automakers in the same period ahead of last year.
In the first quarter, we have engaged with automakers for 15 programs or you kind of confused how long.
29 projects for new pathogen marketing solutions.
In terms, our beta products to dealers.
During the first quarter over 17000, the dealers purchase style data products by the end of the first quarter.
Close to 3000, you does we're using our small call out and the smart assistant which away launch last year.
Regarding our traffic in much.
The number of ever get the or use who access to the hour Mobileye website primary app and the Muni apps was 31.7 million.
Relatively stable compared compatible with it.
Korea, perhaps you here.
Period, despite an unfavorable operating environment in the other verticals.
It was putting it wouldn't be well underway I'm confident in our ability to maintain our and gets beautiful market leadership, given how well defined the long term strategic plan.
Laser focus on delivering value to our customers and auto industry was that our now particle overcome out there for can go for a closer look at though first quarter financial results as well as business outlook for the second quarter over 20 countries.
Thank you mean.
Everyone asked me has already highlighted we are pleased to performance this quarter to fall Twentytwenty.
Please note that as with prior calls our reference on before my discussions today.
Revenues for the first quarter were one point by high period compared to 1.61 today in Q1 last year.
For detailed breakdown media services revenues were 166 million.
Lead generation services revenues were 670.
Online marketplace and other revenues increased by 72%, yes over here to three yeah.
Primarily attributable to the increased contribution from here.
Moving on his call.
Total revenue, so 178 million compared to what kinds of getting forming Q1 2019.
Gross margins remain faithful, 89% first quarter.
Well as for operating expenses.
Selling and marketing expenses in the first quarter was 124 and compared to a company but in in Q1.
2019.
Product development expenses were 292 million compared to 269 million in Q1 29 team.
Finally, DNA expenses 89 million compared to 68 million in the same period offline.
Overall.
Operating profits of 486 minutes for the first quarter.
All twentytwenty compared to 657 million in a corresponding period offline.
Objection low income attributable to auto Hall.
46 million for the first quarter.
[laughter], passing 701 get in the corresponding period of 2019.
Our non-GAAP basic and diluted earnings per share per year.
The first quarter RMB 5.4.
RMB 5.4 effectively.
Compared to RMB 5.93 in RMB 5.7, respectively, and the corresponding Carol I think 19.
As of March 31st and supporting our balance sheet remains very strong cash cash equivalents and shorten the investments all 13.3 billion.
We generated operating cash flow of 499 get in the first quarter of pinpoint.
I mean, I'll address our second quarter outlook.
Which reflects our current and preliminary view on the market, an opening condition and maybe subject to change.
At this point.
We expect to generate net revenues in the range all RMB.
2 billion.
820 million to RMB, two and 320 minutes.
In summary.
Our solid financial performance once again demonstrated resilience of our core business.
Well it will spend fall for new initiatives and disciplined approach to managing costs.
As we fulfill commitments in Mexican Wyoming shareholder value.
We're very pleased to pay our first record annual dividend to shareholders April 20, Toshiya Patrick.
Going forward, we'll continue to expand Tony Hawk related factors will enhance operating efficiency across each offline as well.
Oh ultimate goal of generating family volatile value for shareholders.
Path.
We are ready to take your questions operator.
Please open the line for kidney.
Thank you management May now begin our question and not actions. If you have a question. Please try to zero one on your telephone keypad, you Antech you Antech Q.
You are not please ask your question.
Your funding your question Espinasa before Japan dispute.
Prescribed zero to two Casco questions. So once again zero one on your telephone keypad now to ask a question.
Well, let me remind us please ask one question.
Q.
Our first question, our Anda from Bank of America.
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Thank you for taking my questions. So as you mentioned there is that salvation inc. offline to all online on E business activities. So my question is regarding Autohop strategy initiatives process in particular on Q areas that I just want a.
This one eighth R&D online like broadcasting so was back to get managements view like what's the difference I'll tackle casting auto industry, which has no transaction frequency in the high transaction that is just that go casting repair E commerce platform.
When offline activities I'll come back to normal do these technical testing for cars to be able to sustain a strong traction among usage.
Right.
And what the company's staff.
To compete in this area and then my second area, it's about the I pad the domain traffic management or a customer relationship management.
Recently, we are seeing increasing amount of merchants using by choice. That's just mainly program to attracting to act with uses directionally to Inc. transaction conversion. So I'll just wondering what's our company's savvy can cut that all three key area. Thank you so much.
Officers and do you guys teaching you know when here.
Let me see eastern Massachusetts.
For me a controlled okay, which you should do show Joan I pick a job cheered how trimble job beat you to show jockey policy here, but we could you can encourage you can change you got one can Joe Shoen Churchill shopping.
That's helpful. Thank you for your questions now now for your question how to say.
Hey, Colby 19 epidemic, we do you see a clear trend that a lot of activities have not online we see that the new competitors.
Testing transferred into the search online they jump again, a lot of information online.
Non compete head.
Research Clos that makes the patches on in the store.
Become a close.
People have become a new model when the new cop Hutchison.
Now that you're kind of like getting Vietnam, John that bodes well for both time and exercise.
Obama woman thought easier time, he or she together.
Well, that's three parts of this close the loop.
We can put pen and we fully leased gets a lot of our products.
Based on the sweet parts updates.
[laughter] work on no.
Got it Sandy we are hopeful should not affect catrambone a woman in guy.
Sorry to guide you to Dubai or behavioral change could Ashish Ashish.
Thanks, that's all the fact.
The online communication, we do have a lot of tools, including that we'd be pool, the virtual reality TV tools.
So the virtual new Colorado shown Sandra to cover the online broadcasting and communication that therapy Q2 that take a shot holding in there.
Your metrics you don't really.
Hi, how are you pick a shifting.
Sure.
Now the second part now.
So we do crops in line.
And also the video base to south.
Sorry to go.
Greetings I'm not sure how can become quite talking about your firm up between not sure I'm happy to how that your strategic advice having to TV.
Good question look at major difference between the.
Large amounts transaction compared with the radicalize.
More transaction I still believe dialogue differences.
Hi, Surety book, how you cool.
Hi, I'm sure.
To that which.
So much transaction for the users there too.
Take a look up the car there have to make comparisons.
Yes, two parts I Connectable darkened perspective.
Sure book.
Both the beginning in the she's out high up in bullish.
Chintan Joshi computing.
Jeez, you Chicago depend public Yatra.
Now on the broadcasting live streaming we do you see that.
Hey man on the whole Sir.
Thank you know that support our OEM dealer a critical I'm at 200 years, you could talk here you can affect your book what into a tick.
People driving higher how much you go through to China.
GPG bore you.
This year paper machine can choose from either well designed it could be it can go.
You are now.
Hi, it's quite expensive so thats right for the last streaming deals believes that our support rig data product with product information and also training on the helping on the services for the likes to me very important when we're together to get your booking high due to do.
I can be G. I found a woman tech people now let me pick up in cold who should go.
In the quarter, our live streaming platform, we already worked very closely together with Oems and dealers this lady in utilization.
You do have a dish.
When I took a society each into agenda zone to them she can shop.
Peter could you can go fashion that that go to trickle down here.
Shoot to go back was quite good.
So my last the calculation as well the live streaming dealing the coffee 19 epidemic outbreak.
Very important and also in the car purchasing.
And as a critical part, but maybe not the most important.
Okay I asked to answer your question.
Part of it the laser traffic and this is a looming speaking.
Speaking of the private the laser traffic like two we have already pay the.
Out of a pension of this area and ER and.
We have already a spot the some of the protests internally but.
But everybody is talking about a private domains the traffic.
It's difficult for the bulova as Ingo dealer only you've Oh yeah.
Who mek full use of the.
As a traffic stand there so we were doing projects hopefully.
In Q3 or four I don't know we're doing the program operating pure three late Q3 year old or two for like culture a new.
New tools or products.
Helping dealers Oems to apply more on the multi user charted.
The private domains are traffics and.
And helping them to convert into the topics to through the sales of the.
Let's see where we trial thats.
Oh sure Hilde all thank you.
Next question any law from Morgan Stanley and the so it's a reminder, please ask one question at a time.
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I was part of financial once you are essential for taking my question. My question is regarding.
Management's view on.
Auto Mako recovery second quarter, ending the second half of this year as you mentioned that you have felt witness and improvement in terms of the auto demand.
Since April a whatsoever or do we think it suggest to you know us chuffed offs, an auto yourselves from first quarter into the second quarter. All you have seen structure, you know improve the sentimental for auto sales.
Full year trying to try to and the what will be the impact of your overall you know yard so our revenue.
In the second half what this year. Thank you.
Okay.
The pandemic to me I think it has a huge impact on the other industry.
And your line now there's so many people have been lost their jobs.
And plus the.
The pandemic.
Maybe skew there and the visitor some saying that there could be a second the way things like that so it's.
The economy or Jay.
Hello area, So I think.
This pandemics has a huge and putting them in the future.
So I may ask.
So hassle to address your specific question.
Oh, yes.
You should have actually gone.
Well there should somewhat kinda go you can pick a bio medical dejana franchise huh.
Are you gonna do share.
Give me a note who you can capture homeowner convention here she into other shutdown that we should sign.
For sure about style for sure Yeah Big enough today, you can pick a way to quit commented upon that.
You just.
Yeah, it usually each unless you've actually got in Kenya, and the shutdown sorting that out this year.
Well. Thank you for your question I would love to hear my view regarding market with you. If you look at these yes because.
Rick optical 19, we believe the new Cosco will yield around where the job by 10% to 2%.
No that's not only our estimation, but also the estimation from the China comp sales for the promotional impressive trade mostly stopped council.
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John King Trabosh, asking which hi sheet.
Well then go not done that trend that's the up into the been done that kindness, Utah, what's your the HYSYS you out you'll get them to do you have been done.
Shut out that you get to tie you when you appetite.
China shoot by each people before fund all three of them.
Now you.
Passenger car you'd be looking to sell in April.
Good.
We have to wait until May and June to verify whether the nexus growth continue on not maybe that's due to some of dealer.
Q1 sales caused us to April.
Turning to some of the tickets and what how that kindness yeah.
Hi, Mike Union actually Guy good itself will you file I think it's going to try to unfold.
Got to attack on the phone that.
Chuck will use up.
Can you know peakish.
Oh no.
That's my.
Marketing budgets, all girl along with that total sales volumes, if the south important go down there.
Yes.
He needs to go down Patrick in Asia, and that's just what are you cases you shoot.
She is shopping center.
Okay helpful. What configured she shops have even just in that should hold up please don't take it to will tend to happen.
Hi.
Absolutely, yes, because south Dakota.
Well, no new trend, which is more the offline.
To Ben online. So that's why we do see these trends continue and the disease investable.
So you back out to quickly on that didn't know what does that should you get while bulker will need you to go Hoochie Fujita the NIM from teaching the yield kinda back at you.
So yes, we do you see a lot of opportunities lie.
You know product.
Well as the new tools business for letting me.
And just add one place you know actually thinking for the first upon you know.
All and budgets will exceed 50%, 50% all fall you know the Coca Cola OEM marketing budget this year.
Yes, definitely it's a great opportunity flow.
Okay.
Thank you.
Next question Thomas Chong from Jefferies.
Oh Wow somehow.
On each online it's all what if you went oh well sure yelled at Goldman <unk> are you going you sound, but until say a woman's I really like you do the while at the moment.
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Offend somebody instrument Baltic in my question. My first question just about our cost control initiatives can management share about.
Our strategies in coming quarters, and my second question you asked about our overseas expansion strategy given that in overseas markets. We are seeing the impact from Columbia why would you still quite a few yet.
How should we think about our overall all night auto show in August as well as I'll.
Oh strategies.
Thank you.
Hi, Thomas I will answer your first question and then it to the will answer the second line.
Regarding to call control will continue at your our prudent cost control co brand in particular in traditional business as we have implemented in the last 10 years.
So we believe you know we'll be able to actually you know optimize our overall patient that deliver you know.
Turning to all shareholders and desktop our belief and so we are committed to do that you know in the future.
Okay.
Regarding the development of overseas I truly have already.
Set up to a subsidiary companies.
In UK and Germany already under the teams are already there.
And.
Actually we have already launched or an application called yes auto and are you may download it from the Apple store.
If you want to see the pro glass, maybe you should download that and take a look at that and the progress.
We will make it but the good.
Because of the pandemic the whole process for being delayed because.
Oh application they are some dealers already but the whole process will be like that because or the dealer.
Shuts down you know so if he led to our process, but there will continue efforts.
Oh you.
Pandemic can be.
End of the soon and the and Overstating will launch the virtual auto show.
In China as as we did last year by this year, we hope hopefully we can allow choose the other show.
Centime, a in a in the UK and Germany.
Let's see.
Thank you.
Our next question, Sean Chen from Macquarie As a reminder, please ask one question at a time.
She said one is.
So what's your oil, but you have done the consumer once you Josh.
Oh, yes, the budgets home sales job.
Yes, so adult goes on for John like Digital company open to extremely solid the budget magenta, wallets, and Sean Global Marine Tomorrow, where liability.
Sure when a higher do about close to ensure teams are essential in both took a symposium.
Thank you Sir.
Thank you for taking my question I understand it's cold in Nigeria, maybe I'll check for Oems on three of those terms ship. So I thought your online.
It's encouraging to see the Oems on now looking over 50% helps a bunch oh alignment first quarter.
Let me finish.
With us Watson potent show here looking ahead. Thank you.
How big are kicking it off.
I forgot to Egypt.
You mean meal occasion meal kit.
So in that took a she has found a job you fantastic veterans you'd hoped I know, we can't ship it to be below.
That's helpful. Thank you for your question what actually.
Although first quarter, because some becoming I can't make there's actually know offline activities.
That's why the OEM moved back to online.
Oh article that I cannot she does contain shock who can't that we put this fall.
Hi, guys fish oil change, having said that you guys can may yield you junior meal, Egypt tend to call.
In Q1, do you see the offline marketing activities gradually recover.
Compared with 2019th.
Okay.
In the total budget.
Let's now what's happening on to 19 getting into dropped again that you should try to each year to date have not go from nothing fundamental issue or not so she can you kind of shoot down a little logic that didn't show.
Your next you book.
Well go to your kids come back in that.
And she had time to take a function show cool.
Uh huh.
But I can.
Why this is the case that is because in Q1.
Provided good opportunities for the OEM to walk away that we launched the intelligence Neil call launch tool for them and we also what went on to do the live streaming as well has the video and other online activity and Oh.
Very happy to see that is the fact that was really good with a lower.
So what kind of come in a take that usually the fans are sitting out there so change on that but which helps your passion that she has happened that she has how much additional weight, we can't forget you China China.
So my judgment, yes.
Awesome line next take and whatnot vendors, who will still be there have been.
Hi topped the online the online would it be gradually growing in works agreed the offline.
And let me also clarify one thing you know what I met its path Todd you outlined spending for this year will exceed 50%.
Putting height.
Thank you for.
Next question pain law from credit Suisse.
Hey, funny, how active you saw the tier one count when delaying sluggish.
I see what kind of delays that your show up then well 10 major trade, where they can you tell me a young you'll share without just on that.
No Jonathan.
I will get notional Fuji that you tones over time the game.
Yeah. Good luck.
That would add onions Bauer.
Now that definitely kiyoshi beyond that.
Auction.
It can take on that.
Thank God. So my question is regarding the data products.
So out of order product that we have lunch in the past swaps 18 months or what are the products that actually have been reset receptive that the bad.
But also from all the distributors and what kind of data.
And also in the next.
Sure 12 month, what are the new data product rollout plan and also what are the expected adoption rate by the deal. Thank you.
Oh, well I guess is named so you shouldn't be sitting there Lynch.
So as you know us.
Sorry, yes.
Outlined to you clarify what is the data products.
So you're trying to go Tonight, you will notice how soon.
Yeah, David should they think that will just how you want.
I would be how that covers two major part one is intended to know how long.
Intelligent marketing solution.
Okay.
Are extremely well for no choice will show it should be.
We are proud that dealer last call.
Mark This Tim.
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Well the.
Hey, intelligent new call on telling Pelican marketing solutions now already 17 OEM acuity.
Or maybe you this product.
She is once you know a human Dag new drilling in Chile, thereby you will pop up.
After the last Q1, I mean Q1 2019, the number was only eight bps 17.
Aarding and they did you go the Atlanta, Georgia until we see the attention you will you and she said tons or another so you will.
Yeah, I don't want me Julianne any additional anousha U.S. agenda.
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Yes.
Number 117000, 70000 dealer already you said.
And it really compared with 29 to one number what Tony 14000 14000.
So he or she the so truly this I'm getting them today switching them, we'll do not ship by cohort the top quality and given that she so our third all that I've no doubt Lebron soldier Jen.
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To dealers is to try to enhance does come back in late late.
The conversion rate can be 20% to 35%.
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[noise] well then they probably on the OEM side, we are trying to launch the intelligence.
Yeah.
Well.
We want to connect the Oems with a deal it didnt affect intelligent activities.
The change, but also in Atlanta in that shopping in elementary, which we show them that way. She also patchy.
We'll go into effect in the social enough you go up how mentality in general that soda arty.
[noise] one of your site.
Thanks.
Well, thanks, a lot markdown schools.
And he has begun commercially at the customer visit the store.
Personnel Merrill edge and Ocean.
Thank you know, that's Yemen and happily leads for the our Dod some deals like that.
But does this have you saw the Indesit government contract channel transformation.
[noise] upgrade intelligent new cost now.
In display product would be more perfect size.
Okay, just the way that decision.
Hi, Bob pop of what the two has said maybe I couldn't a expanded over more.
I too is that there we'd have a day the product for that.
Developing selling for example, there's a product called smart R&D, which is.
For the use of the I'm do face of dollar yen when that design the new car models, there that we have with a big data to.
Help them for them to design.
Lotto that a suit the needs of the their customers things like that as there are many and do you mentioned the sum up call out.
For example, that's a like I add a tools to the dealers.
What is that they received the sales leads us.
And that of course, and advisory or make phone call to this to the leap.
And when that talk to the customers on the screen, though they'll be a set of.
Messages or the parameters that the.
Customers talking about for example of the acceleration of what kind of a model and assisted or immediately recognized.
He is a question and the pop up but the answer on the screen so that the b.
Kind of hold I couldn't give.
Give a very precise answers.
And the and make that makes for our nation agreement either that this is a very welcome to buy that dealers and the.
For example last year.
The.
Dealers Uhhuh that uses this tool that they can prove that asphalt is the right by 20% or roughly.
Okay.
As a reminder, please ask one question at a time our next question swore call from Citigroup.
Oh sure coatings phone just so I'll, let you will work so when she's going to change. Okay. Just so you can only be social sort of course, all we should all each of these new units you know maybe to the Celfrost 40 on some trouble goal with all your colorfully channel just yet.
Oh trusted myself, so first quarter Oh, it's a number of dealers Oh was slightly impacted appraisal coordinating so when investment.
As a met the number off theaters kind of recovered from normal level you Managements fund all feel thank you.
Talk to go.
Thank you all.
These are having to down a Mexican before pick a kinda give me on a combined shot happy to out it's going to China.
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The chart Kombucha now not yacht hermetically sealed air.
And in fact, you people now we we should that be Darchinyan three times.
Well my mind that we like thanks into how should we got chicken.
Thank you for the question.
Now the numbers of the dealers.
No we said you'll capped out.
Okay. That's sales transaction volumes, if that total sales the yield would go down by 15% I want to foresee that dealer numbers would also go down people want to be the valley any toward glad to really cover on the overall speaking the total number up dealers will also go down accordingly.
Volume go down.
My second you know what time commensurate Cola, we're happy with Tcs, you're quite hard to FA.
Patrick I'm compute <unk> Ping pie that you need maybe due to me the medium judiciously.
Well you were also watch what would happen that God. The we have to watch. Another however, I think one key element is very critical which is up profitability level of different brands.
Looking at our come off what kind of them. Okay, Dr., there should pay condenser Shaw.
Yes, yes, yes, you can partner.
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Kevin Japanese Brent.
This is Brad their margin level would continue to remain strong God bless you know Cleveland D.
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For the South Korea, and friend's car they want.
No there would be quite simply the what John America booking high that she's got union issue away because each of the bunch other out kind of product.
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So for the Chinese brands, we have to wait tendency to see how involved I think all these brands. If you look at that makes us on a different brands I need to look at the profitability level you some brands.
I have an idea.
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Thank you.
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I don't want and Oh, yes, sometimes showed sequential named puts yes. She she'll go by the sheer tushar oncology that now machine say he may each machine tranquil by appeal, but not sure that Dungannon style goals, which had no multifamily nail Clippers say second half shall do you should track shops, which actually shift.
Yeah, and then the Gildan Jacob I'll, let see fine shop.
So the question is really to the supply chain.
Oh, Yeah, my so overseas and dynamic is actually happened much they tried in China.
He just started to go back to work with some their business operation. So for the for the Oh productions. That's a mother nature component that so we actually needs to what import h. from overseas. So that there. So what do you see it does supply.
The issue in the second half will they overseas SAP had bad makeup situation in cat or the potential manufacturing capacity. Thank you.
Okay. Thanks for question.
For the supply chain costs, you know a we were also going to worry about out in the beginning our most off the Oems have usually about flat two months, even train of thought lets say auto hall.
And Oh, well come back to see people most European how do you actually manufacturers has reviewed into luck and the U.S. you know what little bit lagging behind in mid may but they are gradually to resume to walk into in late May early June.
So that it could fine, but that being said you know.
Mr. Hu fashion view known.
Lot of experts are wanting a Barbara second wave often pandemic you know well, we're going to see if that happens to notify Chad will definitely be disruptive.
But in the long term I think you know this well.
Really I guess you know promote the localization.
Oh, God awful supply chain in China.
The five when his family of many of whom Oems in China are planning to do that.
Even for test willing to have applied to a 100% you know localized their supply chain.
Our next year sometime next year. So this is something I guess, you know we weren't sure involved because yeah.
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Citywides on no generic your your ones user Johnson, you always out there not part of Serbian that.
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Combined here all of your birthday or through the year Richard.
For the most relates to the Youre donate shares are considered to be talking to you quickly product Europe on dealer deployed go quite yet what are going equally for operators are just CRM through chronicle gradually warrants it up on them.
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Okay great.
Auto home.
As we talked many times before that we Oh.
Always are exploring the future opportunities, though while we begin to kind of business.
And Oh, we today, we have already discussed the the traditional.
The this aligned as other puzzlement energy lead generation.
In the future I think they're new area that though we.
We're going to.
Develop for example, the data products we mentioned.
And they use Cup hot I think there's a good opportunity for us to expand our business.
And though we are actually invest a lot and the two years ago, we start.
Stuff become profitable in terms of this business unit.
And the whole quoting area in the next few years.
We can expand out is this a even.
And then the aftermarket whether looking to the aftermarket and.
See if we can.
Developing new products and services, saying that.
Because these are to be business also we're looking to the possibility of 60.
And for example, I'll cover the channel it grows a.
Sorry.
Absolutely.
Excuse me.
We hope a it would be.
When they go into future.
So we have all they love the share the platform.
You can find.
Several.
Joe car companies with us.
Hopefully can expand the this way.
So in the future.
We'll keep our traditional business growing of course, you will be affected by the.
Industry, but on top of that develop and new business right.
Thank you.
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Thank you very much for joining us today.
Sure addressable.
For the updating you Oh, let's fathers conference call you feel much.
In the meantime, your food to getting to put that you have a further questions all covenant.
Thank you just come core conference call in Mexico now right.
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