Q2 2020 New Frontier Health Corp Earnings Call
Okay. Thank you for joining us today and your teleconference will be beginning shortly thank you.
[music].
Please note today's call is being recorded.
I would now like to turn the conference over to Mr. Bill.
I see our please go ahead.
Thank you operator, Hello, everyone and welcome to New Frontier House second quarter 2020 earnings Conference call.
Company's earnings results were released earlier today and our available the Companys IR website at Www Dot that's right.
C.
In addition remarks today will be made accompanied by a presentation, which can also be other companies IR website.
Before we can can you. Please note that discussion today will contain forward looking statements made under the safe Harbor provisions the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statements involve inherent risks and certainties.
Our results may be materially different from the views expressed today further information regarding these and other risks and uncertainties, including our form 20-F as filed with the rest Securities Exchange Commission on March 31st 2020.
Documents filed with the U.S. Securities Exchange Commission.
Frontier does not assume any obligations to update any forward looking statements, except as required under applicable law. This press release also includes financial matters that are not calculated in accordance with international financial reporting standards as issue by the international accounting standard sport.
For a reconciliation of these measures to the most comparable measures calculated in accordance with my FRS. Please see the earnings release, our Investor presentation published by New Frontier Health.
Filed with the FCC on form 6K.
Although we introduced the management team on the call today, that's Roberta Lipson, Chief Executive officer at that age.
Carl will present at that age chairman of the Executive Committee of the board.
Dates for the fourth quarter following management's prepared remarks, well open up the called the question.
Or the Q1 day session Mr. Walter show CFO.
David that's or David <unk> COO at that age will also be available to answer some questions.
That said I would now like to turn the call over to Roberta BARDA. Please go ahead.
Thanks.
Hello.
It's really not to do for discussion of our second.
[music] looking [laughter].
[laughter], sorry, [laughter] sorry.
Certainly the cold 19 outbreak.
[laughter] well after.
Second outbreak.
Oh, no [laughter] corridor.
Driving.
Subsequent to that of course.
Due to be worried cool, but even friction however, he basically what would your year over year free.
[laughter] hearing right, we don't see need to get nothing.
We also made me.
Welcome to TV.
Sure.
So those are probably [laughter].
Even though we saw sequential Q over Q grows well go outpatient visits during the quarter, so decreased by 23.3% year over year.
You patient admissions declined by 23.6%.
The degree to volumes year over year was mainly due to patients, but do you watch temporally non emergency medical services.
Fish in the Chinese government implemented various preventive measures during the coming together.
That's affected the company's hospital clinic operation.
Such measures included the temporary closing non emergency departments, including dentistry and dermatology.
The temporary suspension of vaccine services.
Daily limitations on volumes for certain special teams to maintain social dispensing practices in our clinics.
And the close enough German outpatient clinics during the month of February.
However.
We've seen significant recovery in our business in Q2 Oh.
Outpatient visits increased significantly significantly by 40.5% from Q1.
What do you think the government policies I called it 19 cases increased across China.
Outpatient volumes began to recover in May and June.
Well a couple in Beijing hospitals, and clinics were temporarily affected again, it's Beijing experience and now contain second surgical cases in June of 2020.
Inpatient admissions stays relatively stable to true.
She was.
It lowers mission to pediatric departments throughout what page facility.
Well, they close and has personal hygiene and protective measures for school children more importantly.
However, the company so strong growth in other departments.
Leading internal medicine surgery and orthopedic.
Which recorded over 20% Q on Q well.
In terms of inpatient admissions very true true up 22 20.
That's the same time, both the outpatient and mutation.
Increased this quarter as the result of an increasing the number of higher acuity services offered at our facilities.
I think the adult our revenue in Q2 20 to 20 recorded a 27.4% increase from the prior quarter, although a revenue level in Q2 2020, what's still below the same period last year.
Can you to record Oh, no favorable recovery trends through Q3, which I'll discuss in the next slide.
We will also be true of course positive growth in adjusted EBITDA in the second quarter.
[laughter], primarily attributed to attributable to the strong ramp up a bar Sachin assets.
Joe and Shanghai, Pudong, which recorded 30% year on your growth in revenue in Q2 up 2020.
In addition to strong revenue growth in our expansion that's there.
Just did you on your.
Craig was also due to various cost control measures, which were adopted during the quarter equally good administrative headcount reduction at corporate headquarters.
She in a reduction well that somebody who's been headquarters and voluntary pay reduction by senior management team.
The next page slide 16 shows strong revenue recovery throughout the phases of the patent that make in China.
Good chart plots the year on year, a change of our weekly revenue for 2020.
In Q2, the company's solid steady weed out both the outpatient [laughter] and inpatient admissions across the U.S.H. network.
Beginning at the end it doesn't mean when the government lowered its cold with 19, the sponsor level I'm going to reduce well into many of the remaining restriction volumes rebounded and even faster rate.
These volume increases were primarily driven by demand family medicine, pediatric and emergency care.
Patients return cheesy web page four that regular health care to me.
On June 11.
A new outbreak of Carbonite.
So in case it was done by the Beijing type District.
In response to the new cases, the base to government raised its cold, but nice seamless bonds level and mandate is that many of the prior precautions speed, we implemented across Beijing.
The restrictions on doctrines practicing at multiple sites.
Sure protocols for providing careport fever patients and limitations on the number of non coal that patients that can be seen each day not clinics in order to maintain social dispensing practices.
I see with both of these matches the company's facilities in Beijing saw a temporary drop patient volumes.
The company's facilities and others could be however was not negatively affected by the second limited outbreak in Beijing and continues to steadily recovered during this time.
By the impact of the gene outbreak.
Well I grabbed the meal in June continue to a cover to 97% above prior year same period revenue.
The second outbreak bought quickly under control the Beijing Fab I mean again lowered its called the 19 response level two level three on July 20.
[laughter] change most of the restrictions were removed or significantly reduced on the company Beijing somebody immediately saw an increase in volumes. Since then you are stage has seen continued week over week glow.
[laughter] weekly revenues consistently higher than it was during the same period in the prior year.
Now please turn to slide 17, which illustrates how strong recovery for both our local an expectation stages.
[laughter] International border and other travel restrictions within China since the start of the patent that night, we've seen higher volume and revenue contribution from Chinese patients.
[laughter] beginning of the second quarter Chinese patient numbers, not only were turned to prior level, but also have achieved year over year increases demonstrating the resilience and strong demand for premium private healthcare service from Chinese patients.
Despite the monthly improvements in foreign patient volumes during the same period, there was no a gap compared to pre called at 19 periods during the second quarter.
However during July the company has seen the first year over year increase in terms of revenue from expatriate patients.
This come primarily in the field support the Pinedale surgeries and other specialties, including E N C N pencil.
[laughter] domestic travel restrictions already me and international border open they want a controlled basis the company expects foreign patient volumes to experienced year over year flows.
Patriots continued to come back into China.
We are pleased with how we can look how peri and believe it bodes well for the.
Well I'll Barnett.
Well now turn the call over to call will who will share our latest developments from recent months.
Oh. Please go ahead.
Thank you little bit though.
Please turn to slide 18.
Like site, we pulled off the doing so.
That's open so the fourth quarter since he became too cheap.
The EBITDA well that that's come in May June.
June and July EBITDA continued to be positive as well even.
Even during the cold It 19 period, one Joe United has seen muscle continued strong boenning and revenue growth.
Then by obstetrics gynecology.
Popping cat dermatology internal medicine, Oh, PD and street, that's well its audits indexes.
Extension hosted though that's a good so only 19.5 billion I'd be and EBITDA at all during Q2. Thank you 20. This number includes 810 million I'd be and rental paid quota for the new Beijing Dolphin.
Facility, which implies self one Joe and put on cost the dose approaching breakeven.
We also reached notable milestones and especially with surgery as shown on slide 19.
Let's talk about strategic focus to push into high acuity cases, and continue to enhance all medical capabilities, we achieved a number of milestones in the second quarter.
At LPG Microsemi hospital, a team up with possibly Penn station.
She didn't quite on just the Vinci surgery maintenance Eattwenty.
In addition, we have had the effect change something setting a kept so pacemaker DJ basin, United and became one of the few leading hospitals in the country to do so pay capsule pacemakers, well smallness pacemaker, which gets you to directly into the agenda.
We also completed that says to you, but interventional cardiac surgery the brand new high operating theatre at all Shanghai Knights of Sandy.
This quarter, we continue though flights in the game called with Nike.
San Jose football assets can be found on slide 20.
As previously mentioned.
Many of our facilities have been approved tobacco, but Nike PT odd people need.
The patients on site.
In addition, providing testing for culprit in school partner that's cool.
Okay. That's it.
During the quota baking United Sunday Hospital, Whats wants the only few private hospitals and the country approved to carry out that's supporting Leftwich onsite.
Its ability to do what and how it keeps us the opportunity to provide high quality quality testing for all patients on the top 10 around comp.
That's off today I'm pleased to say that Weve provided more than 90000 Pcr.
And nearly 5000, you Bobby pet across all facility.
We continue to work with some of that stopped trying this call multinational corporation, they own and prices schools and empathy to pay now offering to meet that testing.
Including the ability to alter cobot 19, pesky did employee students and some about cases to all costs.
These testing program not only generate additional revenue falls off the potential to introduce new patients two out of network.
During the second quarter, we participated in several important digital marketing initiatives to support all patient acquisition [laughter].
Including the largest but yeah online shopping events in China. The six one night E Commerce campaign, doing which lodge Chinese E commerce platform, including how 'bout Piedmont, and JD Dot com launched massive or myself.
Any lately and Coleman Coke, culminating on June 18.
We once again, it's it's later this year and so nearly more than five come the G.M.D., we sold last year.
One key that's what's L. C O like streaming show on people Thislife bought costs, including myself, well, but and also adopt this on various specialty hospitals.
That's what they Liberal Johnson question, Oh, My Odeon and help guide Asian, then choosing the proper called up well the individual needs.
During the two hour lifeboat costs more than 1.8 billion people view the show, resulting in roughly 5000 product so.
The show was also the highest ranked among all health care providers because the T mall.
Now please turn to slide 23 point uptake on some exciting new initiatives in Beijing.
[laughter], we launched a new corporate health clinic business model.
Under this new model, we generated revenue, we generate revenues from services such as cycle.
Which was fulfilled by sending medical stuff to apartments campus.
And provide onsite medical support and Bulent services and probably cat.
That's a result, that's limited.
Capex investments and overhead required on our then.
Second we establish new partnerships like in April with about new U.S. clinic, the tension thingy insight trying to call. It the of the aging infrastructure investment bank.
This new clinical there's a partnership with the bank and will provide its employees with direct access to quality health care.
Well provide basic suddenly medicine. So this is ensign and also patients the opportunity to access more that's what he said is that at all other clinics and hospitals Impella medicine, that's worth three barrels to the other sites for cat needed.
Under this model well limits the kept on investment requirements and overhead and will receive a monthly health management D.A.I.D.
Our confidence that this new model will be a win win for both about.
In addition, we recently signed agreement to be the exclusive medical provide the on site for employees and gets at the upcoming Universal Beijing result.
That's a nation park located south east of Beijing feature in pop.
Hotel and IMAX theater complex, that's well its extensive dining and shopping attractions that popped is currently under construction with an anticipated that's called 2021 opening.
However, the beginning in the fourth quarter of Twentytwenty will begin to stop the on site Medical Center will provide front like medical services ambulance called the nation and health controls.
As we look forward to the remainder of Twentytwenty remain focused on our strategic growth quality. That's on slide 10, you couldn't diesel.
Already begun to cheat and b cells from all geographic market reorganization and consolidation.
We expect to continue to pursue more revenue synergy in the coming month.
The quantum facility is now contributing to our earnings.
No news sales jobs facility and put the only because she continue make good progress on the ramp up.
We also continue investing all coal market and extend our offerings.
General and Beijing, Oh, Beijing that somebody else, though no new hope oncology center extended that capability what investment equipment upgrade.
In particular, the Beijing also make a major upgrade.
She likes it.
This upgrade April high quality highest scanning the grain cadient morphology and function and all census small trial.
In addition, the new software that home and post processing voice, then functional imaging and quantitative scanning for various additional condition.
That's a result will be able to significantly enhance the service range and capacity about clinical services.
In addition, Oh, new hope oncology sense in Beijing upgraded its burying linear accelerator to include the latest Varian eclipse treatment planning software.
This major upgrade will bring the latest you've had radiation therapy to the center.
One key benefit is the ability to create that's the clinical treatment plan well patient.
What's done well be able to move more quickly Goldman Sachs and diagnosis <unk> treatment and more accurately calculate the just individual treatment plan for each specific case.
This will also reduce patients treatment, Tom and it's expected to produce that the clinical outcome.
This upgrade will also allow us to connect with other specialty senses to collaborate more efficiently to provide the best cat, we possibly can also 12 patients.
We remain focused on developing all digital keep it looking the upcoming quotas and we'll continue to balance cost control well facilitating the since we covered.
For the mall remain on track as we prepare for the opening of the Beijing Datsun Hospital independent.
Which will happen new management contract model in place.
Now I will touch on all financial performance as well, but the mentioned previously we saw recovery trend that flat quarter over quarter growth.
Slide 26, and 27 illustrate this growth on both revenue and patient Boenning.
Oh, yeah, well, but it provided an overview of the changes in patient voting okay. During the quota in our press release provide a more detailed a mile feedback.
Well, that's a result, if that makes being largely controlled China were seeing improvement in outpatient voting on the call. It though because the basis outpatient voting growth has been particularly strong and dental 70 medicine internal medicine surgery, orthopedics and emergency medicine.
Although even patient that mission did not increase quarter over quarter. We did see continued growth no extension that the and the strong rebound in tier two operating that's it.
I'd like to switch gears by welcoming they tend to his new role as Chief operating officer and your front you know.
You're welcome David this role and since the beginning of this yet he has made significant impact in various strategic initiatives.
And then the.
Along with myself well also something that's a minute managing director Oclock.
Primarily responsible for leading the best [laughter] and the operation Oh portfolio company.
He's in position that the optimal Thomas we aim to make the MISO overall performance I'm excited to work together with David partner to drive the growth of outcomes.
Finally, I'd like to conclude by presenting our outlook for the quarter.
In July and August we continue to see they favorable revenue growth.
In line with steady recovery of outpatient building with Covance Nike see Monday under control as daily life and trying to continue to return to normal we hope that this trend will continue for the quota we expect to see Yep Yep Yep revenue growth of approximately 2% to 5%.
This forecast reflects all current and preliminary view, which is subject to change.
Conclude our prepared remarks, operator were ready for questions.
Thank you will not be conducting a question and answer session.
Turning to ask a question today. Please press star one from your telephone keypad and a confirmation tone indicate your lines and the question Q.
My first start to feel like to move your question from the Q.
Just one shooting speaker equipment, it may be necessary to pick up your handset before pressing the star Keith.
One moment, please what we poll for questions.
Once again that star one day ask your question.
Thank you our first question will be coming from the line of Jason Lewis with credit Suisse.
Hi, there this is Jason.
Nurses Berg with my question and congrats on the results under such a challenging times I have three questions. Here. My first question is mainly regarding some of the ideas for second quarter, especially in first time, we do see a reduction in the salaries wages and benefits expenses.
And that really demonstrates the.
Success of the implication of the cost initiatives I was wondering for the rest of this year or do we expect this to continue or do we see that because <unk> situation is more under control that do this Mary.
Go up a bit on my first question.
Hi, Jason Hi, Thank you for the question so.
You're right some of the benefit came from reduction cost information.
On page one initiative.
This will continue during Q3.
Paul that will continue throughout two plus low we remain open depending on this be up the recovery thought we plan to be choose a small part that.
<unk> cost reduction during Q4 subject to continued to be copy.
Right that's subject.
Got it that's very clear and then my second question, maybe directed towards Roberta, but I remember you mentioned earlier that in the outpatient versus the inpatient volume in the quarter over quarter increase.
I'm more curious about the inpatient volume, where when you were talking about Ami that stayed flat primarily due to the reduction or actually due to some of the changes in the pediatric side I'm wondering could you elaborate a little more on those details because I could see how its.
Schools are close how that would affect the outpatient volumes for pediatrics, but how does that impact some of the inpatient admission volumes. Thank you.
Right, Okay signals missions from growing as quickly as the rest of the instances recovery first of all you're right. The pediatric submissions have slowed and that's because with kids out of school there.
Don't come home with wrote a virus and they don't come home with high fever.
You know so they may end up.
That's all but they're mostly eating mom and dad's food, which is really healthy and they prepare it carefully so those kinds of terrible summit bugs that might get a kid admitted or appendicitis, because they something derby or because they picked up a cooler a virus at school that's now.
I'd happening, there and just much safer and they're watching their hands and they're wearing masks.
The kids aren't getting them because they wouldn't normally that's one of the things and then I think a different issue is also that people. Despite the fact that China is increasingly normal and we feel like we're really living normal lives I think people are still.
Yes. It is to go to the hospital for their patients elective procedures, if they could afford it. So you may ask well that's interesting because look what's happening with inpatient rapidly and we mentioned that that has to do with our A.S.P. going up and I think the reason for that is that the.
Surgeries that nobody wants to put off or those lifesaving really large surgeries that bring a lot of revenue at the same time.
Does that explain it.
Yeah, that's that's clear hopefully a the Trenton continues so so kids can they are more I guess, that's that's a benefit that's.
No we want everybody to stay more healthy, but if they get really sets they do want them to come to United family.
Yes.
And then I hasten I'm sorry.
Jason This is that they that I just want to supplement.
That's fair Dot com and although we see schoolchildren Ah stay at home taking door for extended periods of time, we see that they might have how their medical need including ophthalmology because they can go for an extended period of time, so we see it.
Increasing number of cases, where where other school children to have more ophthalmology you see.
Also on the call the GE shoes and growth the shoes. So through our facilities. We are currently building out a specialty cleaned it up for pediatric Department, where we can offer you know site psychiatric a treatment.
Ophthalmology treatment.
Well development treatment.
Our school children, even they have other neat come yet because of the school school corridor.
Got it thanks, David that's that's very clear.
And then my last question, it's a little more on the macro level, but recently, we've seen quite a few.
The Companys consider a dual listing in Hong Kong should be closer to Asian market, specifically mainland Chinese market I was wondering how does.
And if they see this and would this be an opportunity that <unk> management team is considered thank you.
Hi, yes, absolutely so [laughter] given the current you I've been trying to cut trading relationship. We all well that's kind of trend of Chinese companies coming back to Hong Kong and others are planning to do so and we are witnessing preparing.
And.
That is extension pop for us that's a leading also give them trying to I think it's you probably saw recently a recent survey conducted by things out again, that's five of the new Funky helps you have somebody off the dosing in the top 50 in China with Beijing, United ranked number one gonzo ranked as number four.
She Shanghai from C ran or something.
Oh, the hospitals in cost would be the areas covering all because he has he needs in China with multiple facilities in both Beijing, and Shanghai and we believe we have among the best portfolio <unk> and 23 years will track records and take into account high barriers to entry would be leaves that no.
Company could potentially be body attractive valuation in Hong Kong keep and I'm.
Right, Okay, how to invest it skews the sector.
And then that page we've done extensive work and analyzing consumption, we've discussed with the number by the including preliminary discussions with the regulator.
So the work that we've done we have a good understanding of them Kleiman, Tommy and Paul said and based on that ice. We've received so far the work required and the potential timeline could be somewhere during two anything you want and this is a strategic initiative. This high on they'll probably be lists and we'll continue to focus on finalizing on and that's it with the view.
Creating better you fall show this.
Thank you bet it very clear that's that's all my question Mickey.
Thank you as a reminder, you me press Star one to ask a question at this time.
Next question is from the line of Jamie suit with HSBC.
Hi, everyone. Thanks, Thanks for taking my question and congratulations on a great set of results. Despite these challenging times I guess or some of my questions have always been asked.
Already but that's a follow up on that I just wanted to ask about our current U.S. listing.
Again, given the rising tension between U.S., China are there any sort of risk that the company has identified that associates. This and what are the kind of next steps that we are looking out in a potentially divesting any of the risks Ah. Thank you.
Hi, Jamie I think the Red seal <unk>, referring to is probably the geographic and met coal macro risks. So weve engaged in number of paki and setting this risk, including or anything young we saw all due to that's what other people often.
Oh, if I said have informed us that were not risk currently but that's high level.
Yes. This whole situation. So we can do I could be moments in a situation. So we think that the current assessment, having said that as address and Jason earlier question.
The thing in Hong Kong sleeping beauty and prepared.
[music].
Thank you and I guess on a side note on on that being understandably the assets that we have are I mean.
There's a number of notable companies or that are arguably peers, oh viewers that list in China.
And then assets that are they hold assets to either on part not lower quality, but they are trading at a much higher premium that NFX today. So I'm a it's a it is.
Understandable and ER positive or two to two to Ah. That's that management is actually looking into a lot potential this thing and in Asia. So thank you.
Yes, absolutely that's a couple of other pilots either.
Thank you.
Is there much anyway press star one to ask a question.
Thank you asked me for Star one at this time.
Ask your question possible to assemble the queue.
Thank you that's questions coming from the line of Chris Wong with young key capital.
Hi, Good evening managed from and so let me congratulate you guys on such a.
So the numbers starting person and so I want to just touched at all to the tier two at the expansion assets.
I would just.
Its a long so hospital has been achieved positive after 18 months ago operation and not see them, even having been called the dart two situations right.
Yes, absolutely impressa as a complement suit adventurous occasion as was the brand equity to yeah right in China.
Okay.
Maybe just work on the box so I could be envelope on the numbers worried about the you know kind of an endless pay to talk to the sub brands and.
Equal also being positive pine shanghai's goals, probably making like 10 million losses, I talked about four to could see mark of operation.
And the ones, we expect to see dock.
Become positive.
Sustainably.
Thank you.
Hi, Chris Thanks for the question. So we expect obviously you've been so profitability to.
Rename posted this no buffalo any unforeseen circumstance, although I think no intention is to continue team.
The team and infrastructure for the future Guangdong Hospital.
For the Pudong facility seen equally impressive young your revenue growth I'm glad to answer to question. So we believe that well hopefully several months away profitability and it's most likely that once you put up the t. sometime early next year.
Well, obviously subject to continue ramped up and no barring any unforeseen.
No so consensus expectations that [laughter] conjoined could only at the group, which we've talked to go next year.
Right. Thank you Carl and start just one follow up questions. I think we have touched extensively on food cost cutting from d., the corporate overhead perspective, but it's what I look at that number. She just reported for example, youre.
Tier two operating and other assets revenues, so I had negative 6%.
Growth in the second quarter, but at the same time during football has grown positively.
I mean, it's simple calculation tells me.
<unk> cost this went down 10% isn't that all of the prices was up that cost was down a bit so can you.
Patrick good all the various cost cutting shoot a good programs gossiping. That's been work you know well served a tier one operating assets as was the truth to all pretty after a comedy sensitive.
Rather than they are we talking about sustainably.
Come out of this if you look back a year to fill up now.
Thank you.
Yeah. Thanks, Thank you Chris so.
All the cost cutting only and that kind of course its level in terms of headcount I think when do you see or changes in EBITDA at the operating at that level.
It came from several things this number one because we'd be less busy and so that's been less overcome.
Salaries being paid secondly, there's been some no reduction in social security contribution.
By the government.
Ah that.
Susan I'm salary expenses temporarily slow, but the more that I also some rental.
Especially from those properties that we rent from the government.
We say enterprises, so that benefited us I'm, a little bit having said that.
A little bit difficult to separate that the impact these one off or does it go even reduction. So for example, looking at no EBITDA for the entire quota.
Twentytwenty essentially you have April that's lossmaking and you have a may and June.
That does that have been profitable and that which resulted in 54 million and Q2 Twentytwenty. We've seen given the opposing impact we've seen this possibility appears should maintain.
Hi, I'm glad south deep and reductions in social security, but I'd be taken away, but it's difficult to quantify not in southeast be sector feedbacks, given this and that's good license within these numbers.
Thank you Carl.
Thank you.
As a reminder, anyway press star one to ask a question at this time.
We have a follow up from Jamie suit with HSBC.
Oh, Hi management, Thanks again.
My question is so my follow up question is this with a corporate 19, hopefully behind us.
Now that it's a under presentation. The effect of we are a in a way heading back into growth mode of our existing assets and are over a quarter with also announced new partnership and and then clinics wanted to hear from a from you guys. So if what else thoughts on future growth.
What looked like and how it has evolved over this period.
And then how we should we think of future growth initiatives would it be I'm in a form of 'em, what clinics or maybe more hospitals or or new partnership so far off a the sorts that we've seen a in the second quarter results today. Thank you.
Hi, This is Robert I think that you're going to see a couple of very exciting growth streams from us.
One is.
<unk> development of these kinds of.
Corporate clinic corporate school, Offsite clinics, where we take care.
Our customers not only on a on the hospital to patient basis, but also a business to business paces. So you'll continue to see those kinds of initiative.
Over the next few quarters.
This is where I'm just getting ready to conclude the construction phase of the development of our new Datsun Hospital in Beijing.
Which will be opened early next year, and that's certainly will be contributing a whole new growth stream for us.
And we're also working very diligently on the construction of Arsone Gen Hospital, which will contribute to our work initiatives.
And then that in the following year, but another very interesting area, which we really didn't talk about they too much was an area. That's got the incentives from the whole cold and pandemic situation and that Ah accelerated funds into online help so over this period.
We've seen a great uptake and acceptance on the part of our patients.
For using services not only in person, but also on line and we have plans have greatly expanding that online platform for our patients and also for future patients Sadie picture patient groups that at this point might not be.
He considered.
United family potential market. So this is a very exciting initiative that I'm, hoping to share more with you maybe during the next conference call with some really concrete information.
Okay. Thanks again.
I'm not going to Q.
Thank you at this time, we've come to the end of a question answer session I'll turn the floor back to management for closing remarks.
So thank you all very much for joining us I think our last conference call with everybody lives in the midst of the doldrums and were very happy that we could give everybody. Some good news. This time and let you know that things are really looking up in China, if you're calling from outside of China.
Please be has the comfort to know that things here I really very much getting back to normal and we expect to continue to premium better news on every call. So until that time hope everybody. They say and you again.
To tell you about the next quarter.
Thank you.
Concludes today's conference you may disconnect your lines at this time, thank you for your participation.