Q3 2020 So-Young International Inc Earnings Call

[music].

At this time all participants are in a listen only mode. After the match Miss prepared remarks, there will be a question and on secession.

As a reminder, today's conference call is being recorded.

I would now like to turn the meeting over to your first speaker today Investor Relations director of so yeah Ms. Vivian Shi. Please proceed.

Thank you operator, and thank you for joining.

Okay Twentytwenty on conference calls please note that the discussion today.

Some statements made on to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act on 19 nineties.

Forward looking statements debt to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Potential risks and uncertainties include but are not limited our value our public filings with the FCC, including our annual report on form 20-F.

So he on does not undertake any obligation to update any forward looking statement, except as required under applicable law.

Joining us today on the call on Mr. shooting.

<unk>, chairman and CEO and Mr. <unk> our CFO.

This time I would like to turn the call to over to Mr. <unk> testing.

Oh no. That's your dog out on got see on it all in yen due essentially to talk about <unk>.

Thank you everyone for joining us for our third quarter 20, <unk> on you.

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No medical aesthetics and awareness industry faces significant challenges on China during the cold and I think.

As we much from this is that that we have seen a recovery that is marked by every student and related expense to rapidly changing consumer needs.

We are leveraging their recovery lighten preclude you from and across I want to ecosystem.

As a result during the third quarter.

We made significant progress in expanding our community of users and in medical aesthetics professionals.

Our third quarter results were solid with total revenues of RMB 360 minutes up 90% from last year we.

We grew out of community with average to move on immediately.

8.7 million.

Representing an increase of 154% year over year from 3.4 million during the same period on 2019.

We also increased the number of paying medical service providers on what kind of book.

Sure.

4100 up 27% from 29 pm.

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He won't towards hosted on NADL Hertz. This is true you know to you on boundary on hotels, who are the two that you and so do you. So you know who day from time to share it.

We focused on true.

It's to drive engagement on a user growth during the quarter.

Our strategy here is simple doing.

To improve uses trust in our platform, we try to fix it.

The city of day to rational decision, making by providing reliable adopters multi layer content and as a part of medical treatment plan.

So share warm and that's on the journey that woman dutcher, so due to shop G. Chili Cook sunlight appeal, Hi, Julie you on which were true meaning to that you guys who will share.

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Somebody you don't true year to year from until she is all up on this issue yourself. So cheap courtyard. She found that some on your so called you evandro looming on the essentially bound on site you maybe on a sheer Latino economies on bombing tuned on faiella the boss about on they usually do you. So you may have.

Yes, we are doing she went on to our children from late <unk> shoot social work on the I believe channel piano go how the rental ciucci charters on you or what have you sold it.

Says I want to know us opinions or force on T., saying away me share the Sunday, the we'll move on until a slow there once it so the unions international Somebody's yard if you do the start and she wants to Ustwenty. So the value. This is a share on the true due both to the U.S on some Oh, that's the book engine going Kaizen show some margin.

On the Archie you don't buy it.

The first part of our strategy on our role as a top day to facilitator to how to use them make sound and irrational human decision.

At the end of October we launched a second version of our Amber Road Dr List.

Well, we extended categories that a high demand, but require very specialized and accurate information.

We want to ensure that our users have visibility on with a best in class doctors, a lot, creating the opportunity on de stocking to raise awareness.

One day stopped income she showed us that 43% on total treatment with more than 47% on revenue contribution was directly from the day.

Our Amber road based on fast, becoming no as a China like the true dr. widest for the mattress attics industry and not the video to the home pages from its stock as well.

A total of 196 doctors have been selected into the first and the second version of our what Amber road to document it.

To further demonstrated the widening fluids nearly 1000 doctors applied for selection in the certain debt within a month on these announcement.

By product line, and a ranking doctors and the medical aesthetics professionals based on their skews. The EBITDA. After this to happen user makes that a decision.

It is possible to execute it.

Mark just really quickly and with greater price [noise].

One of the read out on the ease and efficiency have been increased use of my life diagnosis services.

We completed a 100 and the 65000 to request up from 127000 from the previous quarter.

Another Great example, on the effective.

Can be seen in the city on she on.

Average if you use on Nypro cost is by doctors on the amethyst well as much as 21.5 times more than before they were published on the list on the specific categories.

[noise] she true hormones hatchery choices shout out just so you know sometimes on fiber IP all core bushel true boundaries on generally going into year EG Joy to adoption high range somewhere uses your quick maybe early reads on he said I would give on social usable CNG Batu range.

Yeah, you see bobbing, showing a woman solutions in Bordeaux generally consider should end up flow for the news on that do you touched on here with us on she told US essentially all she LTM Glen Charles is on tissue hope to sort out you'll put on triple just this year more simple gene patent what can you also that you haven't zone later this year.

So is your body you balance the bombing Chino NTM Glenn close on so I'll hold on since the E Jets and Joe by postulate.

You can see we did or what.

How are we supported the development Oh intellectual property by professional content creators Oh I can not only did we deploy resources to help them establish share personnel that pages, but we also offered exclusive labor cost of surgeries add to the EPS.

Aesthetic doctors and plastic Surgeons conference on Chinese medical Doctor associations.

The feature is outtakes nearly 8000 medical practitioner signing up.

As I stated earlier building on reach and to chassis to content ecosystem is important if on driving long term growth our business on.

Our solely on ambassadors project has been embraced these non <unk> me by users see seasonality from June.

As of October nearly 800500, a premium articles what generated attracting 481000 to sign up there.

The projects official accounts are we on visitors has attracted nearly 9.8 million fans.

She on Canada should you should be essentially the hamir flow. So yeah whatnot. Thanks, only true solution on the income dollar publishing on how you adopt social is almost equal to each on this is Jim Jim late told me terms on top of me so sure Les conformance always socially you might compare that to you.

So this is Phil socially channel will then so we are true value social selling on sources.

Based on data from our castle Industrywide recovery was evident during the second quarter. Although it was gradual specific trends are emerging as now surgical treatments have returned true.

Samek levels with GMI Upper reservation orders, so were solely on increasing by 40% year over year.

Reinforce our reputation as a first choice in Madden said expressed on.

Typically from non surgical teams, we focused on three strategic initiatives.

So share Coleman silly Gen. One king Teradata facial fillers channel. The overall horses force you do it to about four which helps US dollar range on Belgium chart T. volume quarter million of the they are focused on two songs other than what he sounds you suffer a greater share Kinsey comes on.

<unk> costs you on the.

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Total on building a half will also share studios, who turned out in pilot. So that she is on since we don't you will show in Chicago trend. He showed on your could you tell us is it possible to know for gold.

[noise] for all non surgical treatments being offered on a path from we focused on governance that cross checking details on service delivery, we're showing that contract terms had a standard level of certification to improve our sensitivity off and medical treatment options.

Second we revised our valuation system from merchants and upgraded our.

And who's making range is clear and more detailed answer.

Every county, using standard easier to make rational decisions on which treatments to select.

Lastly, we offer so we on being parts from consumers with the option on pre paid on board member of team and from an authorized initiative.

Typically from Citi.

Citywide based off of merchants.

Hi, standardizing the service process, including clear listing them mature brand teaming agreement and Doctor qualification. This initiative will effectively protects our users interest shorten the time it takes for a user to make treatment decisions and to promote repeat purchase.

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But he may here Tyler conduits margin.

We are pleased to see that China's effective control on the pandemic situation has shade I'm more positive light on our business. We will continue to leverage our competitive advantage in content technology and big data to provide customers with without even making solution.

Marketing solutions.

We believe that in facing new market dynamics, we remain focused on expanding debt.

Thats, our offerings by providing highly efficient mechanical service that generate even more value for that matter of aesthetic sectors industry. So.

Some in show on the net sample you mean, just saw Sunday to the titles from crop.

I would now like to turn the call to over to remain well go through a true.

The quarter.

[noise]. Thanks, Ted please be reminded that all amounts quoted here we were beating on the please also refer to our earnings release for detailed information of our comparative financial performance on year over year basis.

[laughter] quota plenty plenty total revenues were RMB 359.6 million.

18.9% year over year and in line with our previous guidance. The increase was primarily due to increase in the number of paying medical service providers, who who's practices have gradually recovered from the impact of the COVID-19 pins on it as it becomes better controlled in China.

Within total revenues information services revenue is on the 265.7 million up 23.9% year over year Reservation services revenue was RMB 93.9 million up 6.6% year over year.

Cost of revenues were RMB, 54.7% million up by only 1.6% year over year.

Total operating expenses were RMB 300 is 335.1 million up 46.6% year over year sales and marketing expenses were on the 221.6 million up 41.5% year over year, primarily due to an increase in expenses associated.

With branding and a user acquisition initiatives and a payroll cost due to increased the number of employees in a business development team.

General and administrative expenses will on B 50.3 million up 55.4% year over year, primarily due to an increase in payroll costs associated with the expansion of an administrative employees.

Research and development expense as well on the 63.2 million.

Up 59.7% year over year.

The increase was primarily a result of payroll costs associated with increased hiring to support product development, which is in line with the company's strategy and strengthening its.

Its technology and in Big data analysis capabilities income tax benefit was on be 16.3 million compared with net income tax expenses of RMB 2.9 million. During the same period last year think income tax benefit was the rise from a change in a profit.

Preferential income tax rate one of solely on subsidiaries, which resulted in a day with phones of RMB 16.4 million force.

For tax net income.

For tax paid in previous periods.

Net income was on be 0.9 million compared with net income of RMB 31.6 million in the third quarter of 2019.

Non-GAAP net income was RMB 26.4 million compared with RMB 40.5 million non-GAAP net income in the same period of 2019.

Basic and diluted earnings per share ideas attributable to ordinary shareholders, while on be 0.01, and on the 0.0, respectively compared with RMB is <unk> point to 31 and on these your point 29, respectively. During the third quarter of 2019.

Now for our balance sheet.

As of September Thirtyth was on 20, we had total cash on the cash equivalents restricted cash and and 10 deposits time deposits and the.

Tim investment of RMB, two point 81 balance compared with RMB two point 84 billion as of December 31st 2019.

We are closely monitoring the you'd be on going back to the October 19 on consumer demand and essentially on to as normal working conditions resume in China.

We are cognizant that there are many on news relating to overall macro economic impact of the outbreak, but we are confident that the fundamentals and long term drivers of our business remains strong.

With that in mind for the fourth quarter of 2020, we expect total revenues to be between on B.

420 million and RMB 450 million, although we are seeing a recovery across E commerce industry in China, Inc.

It is still relatively early to fully assess the Afghan makes long term impact on our business and the markets in which we operate.

So I want to remind you that this forecast reflects the company's current on a preliminary views on the market on operational conditions, which are subject to change.

This concludes our prepared remarks, I will now turn the call to the operator and open the call focus on a.

Operator, we are ready to take questions.

Thank you, ladies and gentlemen, we will now begin the question and on secession.

If you wish to ask a question. Please press star one on your telephone and like from your name to be announced to catch on your Reclass <unk> past the pound Oh hash key theme.

Please limit to one question at a time per caller if.

If you have follow up questions do you reclassed to rejoin the queue by pressing star one again.

College, who asked the question in Chinese please repeat in English immediately after once again, ladies and gentlemen that style one for questions.

Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.

[laughter] well talk about it on age old channel whether to do it.

They're going to issue equity return home eating jolla could be on both it seems to go from here that sort of channel ill hold true here to equate encode handler from basis on though.

Earnings per unit.

Yeah.

Oh I see some.

And as many from anybody can my question, Okay, but it's going to give us some color about the industry trend on optimal.

Our net.

On a bit try to adjust and opportunities and what's the outlook for the industry next year. Thank you.

Well up with other bunch of Uh huh.

On same size, how high you know don't particularly if it's on culture kinda since you hear the it's on to grim on.

The Gentiva healthcare for dollar change on mission team.

Let me check on loan growth through that it was also you hold on yes on sort of hand on something on a day to day.

We are pleased to see that recently the industry has recovered to on the NAV ought to be Hooper damage. Our performance double 11 show that so we ended the industry generally have bounced back.

Ah Tony Senior notes on versus interest is all I can Ah Tony until you pass on goal our sales force I'm not sure how many of those RIDEA non dollar will reopen value. He bush others on time audio real thin so I wonder if you net.

Mandiant on Apone thousand linear you May hear you Gotta channel shares hold on the junior another day good option on her thoughts on what do you get hit on shock woman channel since he may sulfate, you'll you'll actually bullish on the Rose Hall.

In terms of timeline and the low point on the Index Tree Awards in February and then watch right at the operating profit probably 19, and then we sell accurate on small rebalancing they may and June Ah August and September was stated yeah.

And is it traditional peak season, and with Big promotions a major book.

Hi from there has been on new consumption boom, machlis that extremists and services.

[noise] chunks unless on Canada socially you may sort out your generators on Josh on her social or you May know you made cut under <unk> GAAP. So any changes on Sadara. Sanjay you go through channel what are you going to pursue Belgians you know answer on things on so now each inquiry flow Darchinyan and leadership team done Burundian that Joe you agree more.

Kurt on job continue on any sharply higher income as hazard.

By take range, we saw that Easter, but dammit impact in a non surgical treatment.

The largest impact was on surgeries with higher average transaction matters, but these are the carbon graduating.

We Oh, the total transaction modems has a recall back to the same level at the end of last year back to their skill gaps in total radnor side and on <unk>.

Sure on here, it's on who grim or utiba without any change on the shipping, especially our growth with all main impact from the artists on the old up how he is on social who are actually are you going to see debt or how he is also on a GAAP image you got poll found since it should position on one.

HM terms all recovery, we see different trends in terms of volume and your growth rate a lot on has almost on a call right about industry growth rate range was five from on PREPA Dan's lap over 20%.

Offline service from I, just need more time to show communism.

Hi, Deane management.

It's usually assays on Ji hotel.

Hi, it's usually follow me on a woman on Kindle, she's doing a notional value you myself in a potential share. So so I, maybe inching zone shortage of course yeah.

Your daughter is always on our cash is just so you know who you make on so you might just hard on Gagnon you may suffer in our country on la Porte sharp pull a charter to shop.

So told on net new tone hurts their budget comes out of it.

Market education has helped to expand its consumption on medical aesthetics treatments and service from on each marketing hype fashion and ability to that mainstream.

Medical aesthetic concepts, such as skin care, any aging and share herring pounds, I guess I'm more and more consumers.

Aside from that 90% Ics consumption is reaching a broader audience across more H block and occupation background.

Our social or the you may salmona your debt central range on there's only so moving on to try and do I make international you Miss on check on shoot or if they could range of it.

Demand has also been received in a rather that option for surgical achievements, especially for those who has a higher demand for beauty.

Yeah, but each of the years on going they Salvador true the human cells I showed you true so moving over to south as usual here based on Oakland.

Due to the limitation on overseas travel users, who used to choose from achievements abroad in Japan and Korea now seeking for same quality service locally.

Yeah, Yeah. So you might you go to Gen. Two don't tend to come gradually joggers on non Sally who cannot attend goes on but so you're down through email curbishley chimney, Michelle Mulder could on jobs you on any change I don't charge. She is going to have a huge salvage on June without human says how.

Oh, we also see the trends that institution on your or the price to get more price sensitive new commerce, because the intensified competition and price war.

A telephone call me on a science Union thought us off on your job you met your goals on T. Shorja size socially you may from in US just on we saw it being bad she's on two things on jointly dollar channel or Cook. So you made the assumption on high whose on two buildings on value on the shelf is a routine is huh.

Zone or not so sure she itself as a bundle and are you moving should they told you Giada momentum you may saumil views on she Paul will then say well so she didn't jar. So theres always a simple way youre suits on costs on rates on zone that you may Salvador, our yield type on top.

[noise] metastatic service providers that have tied to hold on to spending on marketing expense for surgical treatment and are some of them transfer to part on these budget true, though to use acquisition from.

Nonsurgical do too bearish migrate from alignment we.

We also have the pricing.

We ever use a surgeon customers it remains to be seen those price sensitive consumers will convert into long term consumers.

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Social and email you only I see two liter soda early relying on whom.

Whom and even some of the salvage on Google up on on a holiday social M-, what she'd Hot cocoa and then John you made some we will not do it even if you go lives on several friends shelter each other charges. So you will share not yes.

Yeah, its issued holiday NGL fail, we showed on himself.

There's no substantial change in the manufacture of metastatic service providers.

Surgical team has remained a major source on south and profit.

If the uptick of consumption on I'll begin on level achievements that should translate into demand for surgical and other high battered humans.

The likely impact on the service provider is that there will be less willing to pay marketing expense.

A thought on your route a little Munsey M- schumm with Salvador to it you go to reveal who goes on low on dialysis. So as you go native who Benson zone Chalet Selmo do it all in we share the trend is not so sure Yahoo ship on on to adopting the money either from Hudson I'll see you.

And the other trials that Google It so share similar you may salvage on may older adult now how value rich yet three chico here over a dollar value on a from and Kobe.

GAAP.

Third in beginner level users and their team is creates another potential problem pressure up on it.

Service providers a discount.

Just cost or direct customer topic, but if the same cost on that and that's very satisfied with the service. They picked next day. The reviews on the comments could have an impact on the entire industry as well as the institutions.

A bullish on how they are just as I see on multinational.

From Angie you made some of those Salvador woman appears on the lumbar cuisine shada she's on could change on a dessert channel outside of warrants on go do not to be leaner hydrophilic on shot up there's an element on the outside drayage on on passing on the ideas on cash on it sits on a room and even some letting downbeat non Dod over this you see Johan on each area in Charlotte.

He's on some loans on not commenting on BD. The PIF individuals is true RCR non Gerardo deuschle buy from the TC saw has its own so low current average on Russia, you didn't channel. So you take a dual mode on our children I wish I did.

Those targets to our pass on to a <unk> million might compare to either on a topic of possible.

Okay.

On the data from our past wrong shows that act like oney or NATO percentage, Oh don't production volume to average prices low 2020, RMB, yet, but some day have from other competitors well show like on more than 70% or tries act.

As a fine on a readout at noon on those trifecta fiber without knowing.

Pricing a range around my thousands.

[noise] are they are you know on the heels on all.

Well no they look for each year no doubts issue that the outlook on the machines on our Union how year Jones from Jefferies potential. So you don't doubt I'm, sorry for Toyota and so neither here Tom how do we.

We expect this debt.

A weighted to gradually recover to their profit damaged level of 20% and 2021.

If we could have kept as such good control in China.

She gold zone switching giada thesis on USANA to do so this is I Socialist Union some zone.

Service providers will gradually increase marketing budgets, especially for surgical treatment.

Chile other targets that he's our value then they are so kind of other more sure. Joe has sought out eating from new leases. Your interest. She goes on with Pfizer said on most of the Saudi people got fired on the Tonight value on a cushion for children.

Institutions adopt sales promotion and how selling to seize the limited market.

And there is a pricing war going on but finally found.

As a service provider discover that these projects.

Mm mm patients and lead to accounting under dispute.

Hi, Jim how father know Glenn Jim Sorry, 40 year, she on John T. Booties. So since you have gained share of him down salaries or sorry. He may sell much on as usual dawn on the adult congratulating them on June we're going to you. So you go from many long prices I mean, so post on John teach out on that.

So opinions on the volume how may so cash on on Hulu, So on the shelf space or what's your thought on do she is on the about on.

What they need the keytruda, how see demand up industry light you service from us.

We will concentrate on refine our service to meet comes on.

Demand for access to the doctors service [noise].

[noise] damning increasing [noise].

[noise] diagnosis Ambrose list and so on the on board if it costs a beauty Cox.

To better serve our end users.

[noise] Oh, the two LNG liquid acquisitions share.

Yeah, that's all.

Thank you. Your next question comes from the line of Brian calling from Citigroup. Please ask your question.

Hi, James on diesel.

And it's just it's just what's your what was your share Winchesters essentially the woman so to the you what's on a feature on the non.

Not huge opportunity on but you also know what's on your <unk> on our Union. The instant book study, which is from young kitchen.

HM She's all the to go on the 60 L.

Hey, good time, she did she ginger yep okay.

Okay, I mean on trusted myself.

Based on our on bond H. user rose or what is so we are on.

That's true for monetization in country 21, and a is there any update for the CPL on subscription products you mentioned that before thank you.

[noise] Shisha Oh on children on large on now you know who to this it even though she opens up going on I see a woman relied on us on and it's only on Saturday. So usually on would you sort of caught up your full time, but on the other on the.

Yes, it was higher while you're quick on the on them in Asia.

Yeah, the growth and particularly Chromadex force that user growth, where wed may wind up all our key strategies in an extra day or two to three years out we day expansion on the base use Ah Ah characteristics and at.

And at different stage, where show greater difference.

Oh on its all put on for you on challenging scenario towards usual potash producer Brian.

Gunboat allowed you put homes from GE the Yahoo as usual hurt your so called it a short.

Showed on Yahoo self interest so that's what she just don't know who design is on.

We actually be reaching a user per ducks are focusing on operations and understanding their needs and the pain points in decision making progress.

For users on different levels of clearance.

With our average data and other technologies.

By these approaches we asked shot on Anges as decision, making cycle and improve money type money, how do you see a monetization.

Oh, that's rose from me on or do you guys do most of on bank. So from wireless even surely no more shut down. So you may use on the abundant in high value for your questions I touched on you. So they are not just opinions that go on Yahoo growth you saw so just fades widget on ILUVIEN Taleo goes on our go to do so I'm not sure my successor.

Joan Solotar Chin you may some on Belgium.

Yeah on insurance you go backwards on your who daily we are cross border to yet be sooner. So you might have thought so he'll put on Zillow Trulia radio model Nelson things are the outage of on.

I doing this we have several major projects. One is the first one on December adapted it which establishing a machine like modal NAV on end users to pick sick and selected that doctors ended the second one is we're looking to your true Nick on the liability on.

Diagnosis to enable users to communicate a face to face on high efficiently with doctors and they're on a professional consulting.

In the third one is solely on beauty card or we think that it's more standardized.

Earnings from like humans, and its streak selection on the old service providers to ensure service delivery and user experience.

On the last one is medical team has put on.

We can back in this way, we could and greater resources on service provider and a customized solutions from.

Good day.

Oh Gee lessors are superior's hung in there you go genzyme on international.

International reach and they use on a woman true generics or know how here Tony that's just how Greenwich associates Chico the coal fall until it.

Good day auto was the Hutchinson so you're not common shares on seamless on is I mean, just on book all three womens I assume hills hanging on to want your thoughts on on solid share tradition, a charge on June.

You don't on those just on simple Williams I knew her treating soon as long as Hamid.

He is on schedule to though on injunctions, there's I mean, yes. It on away from woman will lose your twoq on doors on your harvest from here.

She's also on city GAAP initially.

Due to the whole market size reduce debt. This year service providers were more practical and cautious about their marketing strategies.

No and they've made last passion accepting new monetization products.

Based on such situation on weight sounds CGI kick ass, or we wont make some adjustment on the pace to promote our CPL product.

And we are still studying and progressing development on the new monetization products.

And there are also proving the whole quantity of our working well.

We believe with the marketing recovery next year and in the near term, we will successfully loud from our NAV to improve on a efficiency of monetization.

[noise]. Thank you.

[noise] [noise]. Thank you. Your next question comes from the line net Vincent Yu from Needham and company. Please ask your question.

Hi management. Thank you for taking my question on the congrats on the strong debt you the growth and great quarter.

Question is on the lights on human part or the like Nonsurgical on.

But as far as the industry is seeing more non surgically demands or like true true.

Men's men's.

This will be a very demand for like human lead to changes user behavior, and the day or traditionally making passes by.

On line like and how we will still be on adapt to the emerging trends our silicon from digital that's going on at least we book.

So thats really going on to college, which you built and now with the wins issue going to achieve you may not age of achieving this feature and on the to the challenge now on mission you consolidation is on average once those share.

Yes.

The seemingly coming true today.

On the budget back in humans young.

Net interest and I say, two notches GDP growth huge.

In the tissue from that she should be on why should it.

Hi, Susan.

Chaminade Fine Mahoney really now tones onto this is.

Face all showed a human shamil non still others hold on on Bulkers on T. wrong searching. It's also true so my share region how sandal.

Put on the team made based on the Salmonella Yehuda just holding on to your sales are put on up.

Mm.

Like medical aesthetics referred to on now surgical treatment, including a new money massive treatment like a body Oh baby injections or.

Randy If for example, and and energy based services like on days actually men's force do tiny on spot removed book publishers.

Use hall in yourself from medical treatment adopt a variety of decision.

On todays call could Angelo Gordon somewhat Peugeot zone, you may consider from in hotels on Dol, a commodity quarters, you may switching from energy resources on crucial.

From a true biopharm end of your shows on technology will now start to change from what they had hominids on since you know who didn't job with a $10 move on question and maybe you saw joggers on call Archon on scenario you doing the channel is also a function. The its household or you still not you Didnt do you also see the resolving a large on a day later.

On the other good teammates channel Tallow salvagers on Louisiana, She's even socially unit share more should be legitimate.

Non surgical treatment with high value such as.

On the March Coolsculpting and debt picosecond laser generally caused Ah Ah from 5002 or more than 10.

10000, each unit so.

Besides their high prices. These documents are risky and that's it and is it higher crime is for Dr. skew.

The decision possible on these pretty much is similar to a surgical procedures.

[noise] Tony on on its own to show us through social machine how old you know my share later, some will be research on when I was on so so lumpy from Rod Hall was high for the 10 Charbonneau Shamil EG My sense is on them. So you saw that usually onshore libbey on call put on a usone Todd will share was higher EBIT on that.

Are you doing affiliation sovereigns or Georgia, Louisiana, then socialists on what you'll be larger.

Similarly.

Feeling injections as such as ironic ace it injections to a GAAP this well had an.

And on the I range in any shoes.

And its value. It also said high technology Ah Ah technical requirements for doctors.

As a result.

Virus significantly between different doctors and interest hi, So those decision path is also similar to our surgical team.

Sorry, you sounds as relation merchant image somersault share on should also drive true officials, who.

Tons on shelf is are they going to hurt your solution resource rich on these higher without g. on now I just on when they were on she's RG onto Salvager true solvency total book insult sounds little Meanwhile, from what you saw on you show your insights on scheduled on somebody among larger shelf is a day.

From the cheap so force it's only the good portion up momentum will share on the losses on that May succop on most of those functions to somebody, especially how about on the units are now.

Although the a bolt on mashing animation debt Lightstream is on nonsurgical, the consume a combination and debt decision pass on more while at the same as the surgical teams. So so far these payments much EPS for surgical volume is what provided to consumers with a true.

For our decision, making that took it includes like we already provide on like that true and as a party of UGC content on.

Massive at the U.S ways transparent pricing and authentic you know certification on both from a key area and equipment used we also made in non native approached like MBOED adopted as we mentioned before and so we on duty cards to help improve decision making efficiency.

And ensure service deliver a quality.

[noise] Jinyan Seamus just on non zone, so lumpy, though quite a European laying on sure salus It should help with industry as well. So you lay the human to human Chalmette.

Just on what she Minnesota, She says I use your thoughts on the time Ocean House on it just on room, Angela you may somewhat loans on non commenting on dungeon on abundance you see now to sellers you know some on the could on jockey Decently Omega Cindy maybe they she brings on which ones are you from yeah, Michel you, sometimes from whom and you may sell model.

So there's always a shrunken door day, you may sit on timeline I assume thats only on the cellular on a share Yahoo. So on t. the shelf in a lean on your business.

So I imagine you go on and I saw on coal could on somewhat of a holiday Libya deep.

The reseller channel salvage auctions or goes on comes on soccer virtually the binge on incentives on me from its on darkens you towards on income daughter, Chico I scale, new liner television, they're kind of simple Kip zone shelf is on our Clearwater Congrats on the way the jogger.

Another rhapsody cash raising the nonsurgical Siemens is beginning level, she made such as I call auction and on your free injection. These humans have average transaction value would be low on 200 on.

Or even below 100 on which actually on some other platforms to more than 71% on total Oh total eventually almost a note you back into say Ravi or risk and require no enrollment offer physicians beginning level team is high.

Mall potential consumers upbringing growth for that matter was that if markets, but however, overall spending power is weaker and it's a conversion related to big ticket item is relative value.

Well, it's actually makes consumer choice.

Dependent on price and convenience.

From a foot for like the debt the distance. So we are increasing supply and expanding to more service providers as well as providing more committed to consumer with actual subsidies.

Sure sure Okay.

[noise]. Thank you. Your next question comes from the line of Leo Channel from Deutsche Bank. Please ask your question.

[noise] Anyhow G. Dawn zone. We then was on how she said this whole if you want on whether when he is not going to sit here today, you got your GDS, Oh, which I'm sure. We'll talk on each I'm quite treaty types, you might share a huge fallout century ti on the suit on from.

Ah So believe me I choose only joined <unk>. So thank you for taking my question are we see it affect your competition is becoming more intensive my question is that what initiatives well. So we on tech to increase your market share of the competition intensified. Thank you.

Hi, Susan.

Well, then I finish on I'll talk radio who then on the on telecom So I found out on Oh.

So you can lose on generic image you go share in Sokoto phones on growth. She's this omni channel show you know shortly on the branches our interest on she wants out she on senior notes on TV shows on the chenier drilling on policies, even though you've got some zone three high on your three centralized. She says she owns unions I M-. She goes on helpful. If on a simple so from interest.

Just on the I should say on engender.

First Oh, we can definitely raspy the during two sides. One is on the much insight on.

Because of the net impact on the call the 19 and told.

Hold on Mount up spending by medical aesthetic service providers on your definition declined compared with the previous year.

Despite this we were able to maintain Ambrose so and that way. We believe this is indicated that we continue to gain market share in the total addressable market.

Oh sure Moshe hires on your grim or you don't growth one dollar each in China shipping the on site socialism Youve on in May and June patterns are sure Thats also true going on which are Thats hard you are adjusted EBITDA you met your goal sit on top of on since you know Glenn the initial well Michel she is true the higher. It's also the recent image you goes on.

So first on the C. You don't forget we who nicer job after you on telcos on on Hulu.

Now.

Send mediware recover as industry growth gradually return to normal at around 20%.

And again on that and marketing spend will return to pre dynamic level.

Larger than before.

Ah Tony It's all work on a dollar like on a she algae based on due to the use to.

So this is I, social and email E. G code on job to you. So you also talk about some of you might share Michelle well then zone tissue balance itself I mean, they also Tulsa tumble option as usual our volume. So you could share function. They saw timber on she's been here on board. She on you somehow some opinions on the lawsuit use on bond.

No channel or you don't on the usage they share is a coupon on hold here with yet GR horseshoe going door to juggle your shot.

<unk> unique advantage on to depreciate it asks on either.

We will remain modest at mounted Meanwhile, we will find some fighting each category building on our advantage on the Doctor side with 92 diagnosis.

Dr List and other innovations to provide that easy period ended to attract more spending by service providers.

[noise] wholesale or binge on tissue Johan Sony is on me two woman Ginger Hawker, you'll sort of things do you think volume.

Boundaries conduits on child, she joins our game on as you go you on the Leach on share option higher horseshoe culturally on.

Our monetization products in them on small to medium service providers to acquire high quality users through.

Through our platform, we consistency to proving this and to highlight our ability to help those oh small to medium service providers and debt by users.

Oh I see.

So you'll hold on a share I owe each day initial especially shipping zone generally youre pushing on the image on hunting high.

I will continue on being regions on that's just on the true. So you may on Monday hear us on Chicago So.

Also as you said you like on a woman or a meal. So he is on GAAP dysfunction Gulf re woman's I feel good on the systems I don't know depending on on sensitivities.

On the do this either despite a day a dynamic we kept our own spending and investments a reflection on walk on meet them into Butte, I trusted and medical aesthetic path because we opt in my Oh optimistic about the long term prospects of the industry as ever.

Without Oh, a m- you has increased and a record at high.

Historically a high.

On a solid ground from market share from us on the user side.

So I assume those all on are you from your non sounds from design, social and really that's I know you also.

Yes, they are G. Sibs essentially changing teams you hiring you on these option that you've actually made a channel on Monday June it'll be like social.

[music] yourself as a kind of a usone woman, who bought she on you somehow so he means a new policies on downtime you. So I'm sent people.

He will use on say a reduction on the boat on those so but she is going door usually use on John the answer for you that your national Suzhou channel, how woman's that you hold on to yours.

To improve I'll walk from positive ability, we I hasten on a conditional I founded in a surgical team, especially on the doctor sites and to have started to fine tune operations on penetrating into more categories to create a higher entries has.

It's official from in the room and see the you may some momentum Sheila can be there in 2012 net charge.

Josh on Chico I scaled up towards that just didn't seem can jonker being from go up would share some foster true about share. They also post the judge I Wonder if you go to work on T. So do you go to fool the units are now.

Full but now surgical team as we we have adopted a strategy of following the competition in the beginning with average human expanding the number of service providers and execute on our platform and providing subsidies to ensure our pricing.

Luggage, we also improved cooperation with service providers to improve the quality of the memory.

To reach your goals I either goal could on John Chaney Shamil. She on his willingness to cop three E share tool order changes shamil Yoshi on changing pinch on certainly hurting Joe did you for ourselves you know Sergey given a patient per Gen. Two nations you go someway mates.

Got a force on toward sort of also the shelf is that you can't go harder force yet it seems on carrots hydrogen zone taller order comes out to see how simple.

We launched a solely on beauty cards, passing on some non surgical treatment we selectively.

Based on the kind of a market condition.

And yeah.

[noise] [noise] [noise] [noise] [noise] also Inc.

[noise] also we will use our service on <unk>.

And deciding on the EPS Oki services and also.

Finally, the trading on those offline.

Margin to game on Mckee share with our better service experience.

Sure that's all thank you.

Thank you. Your next question comes from the line of a six year from 86 research. Please ask your cash.

Hello, Thanks management for taking my question I have a follow up question on our new interest. It's can management provide some on a more kind of on national mix of our on your part that such has the tech grads holds true yen or hours solely on duty car.

And going into next year do we have any other product in pipeline on thank you. Okay has anything she on visual it's you're not really gone from kind of when she should rely on the scene cantina on I'm, not seeing Bonnie towns or share deal on the nursing times infusion actually yeah on makes it.

Peak on Billy said, a Jake on should you wish metrics on easy do it on me as Jayco on my emails from net championship magic on headcount on that she said Washington.

[noise] Oh, okay. Thanks, <unk>, let me try to answer your question for any new put on it and business Fortunately yet and the.

The message I think.

We don't have a lot of data to share at the moment.

From a foot so yes, we have being upgraded that service into a more comprehensive and the dedicated a team to have a better services to our high value customers.

But currently they as well they are not contributing majority or any substantial revenue on our a topline.

And for the other.

The beauty cost model.

We just the studies at the second half of this year and we are trying to make the whole a user experience and the whole operating process being more efficient and trying to tackle the light on surgical non surgical market for four from new users.

And we have they are quite confident on the future of the new services and we probably can share more information in a more data going.

Going forward the next few quarters and for all the new products when we penetrating to other new yeah. I think that was services. He is always our.

A new categories of us on its providing to customers other than medical aesthetics.

Are we but dental clinics experienced more impacts from from dynamic to be Frank in the past few months.

And the operations recovered even slower but next year, we will continue to invest in dental treatments and attempt.

Other products like insurance products and for potential treatments based on.

The new business model.

At present, but from the business on a comfortable still a very small portion of the revenue compared to Oh, the revenue generated from medical aesthetics.

Hopefully that on so your question. Thanks.

Thank you.

Well, ladies and gentlemen, that's all the time, we have for questions today, So with that we conclude our conference for today. Thank you for participating you may now disconnect.

[music].

[music].

[music].

Mhm.

[music].

Good morning, ladies and gentlemen, thank you for standing by force. So yes, the first quarter 2020 earnings conference call.

At this time all participants are in a listen only mode. After the match Ms prepared remarks, there will be a question and on secession.

As a reminder, today's conference call is being recorded on.

I will now like to turn the meeting over to your first speaker today Investor Relations director of so yeah Ms. Vivian Shi. Please proceed.

Thank you operator, and thank you for joining.

Ah Twentytwenty earnings Conference call. Please note that the discussion today.

Statements made on to the Safe Harbor provisions of the U.S. private Securities and the Litigation Reform Act on 19 I guess.

Forward looking statements debt to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Potential risks and uncertainties include but are not limited on value our public filings with the FCC, including our annual report on form 20-F.

So on does not undertake any obligation to update any forward looking statement, except as required under applicable law.

Joining us today on call on Mr., Ji, our founder Chairman and CEO and the Mississippi, Our CFO at this time I would like to turn the call to over to Mr. shooting testing.

But all that said our downtime dot share RDR lenient essentially those have all day Ali.

Thank you everyone for joining us for about 600 Twentytwenty on.

She won so your agency jobs on what you may have heard your on how you manage that you'd have to tell that she's a how you bring on on the fashion.

And then of course, we'll be o'hagan share with us what you'll see on the hotels on the you'll do fall should do a deal with officials from once you decide to utilize all a women's hold on power here for sure that high so since you called out you'll you'll recall you might try and answer goes on that's so true binge.

Being judged on who resides Hugo.

Sure the weighted but.

But you don't know on Mrs yellow, but do not yet.

So with that on Sunday, I really I mean, the Soviet Union on she's on dollar value should your.

She on you don't want to New York.

Jones on to buybacks you show up somebody true in hone she does some especially a lot. This is on the Alabama I wish list.

As you know from LG Bushel Jones on too so the challenge of Slingshot Shobi our lead on your essentially two zones on our buttons are a cheap.

Oh, no medical aesthetics and awareness industry faces significant challenges in China during the cold in 19 mechanic actually much from this setback we are seeing a recovery that is marked by a resilient and related expense to rapidly changing consumer needs.

We had an average in their recovery like preclude instrument across our ecosystem.

As our base out during the day.

We made significant progress in expanding our community of users and a medical aesthetics professionals on.

Our third quarter results was on it with total revenues of RMB 360 minutes up 90% from last year.

We grew our community with average on move on any news.

8.7 million.

Presenting on an increase of 154% year over year from 3.4 million during the same period of 2019.

We also increased the number of paying medical service providers on what kind of from two.

Sure.

4100 up 27% from 2019.

[noise] decently, though on the intracellular accounts will share a changing overtime do you put those on well then such a large I mean lets all do tolgois tweets on color you saw on T.

He won't those homes from the needle hurts the sushi LTE on boundary on who towards who are the two that you took diesel fuel production kind of a share.

We focused on two issues.

It's to drive engagement on a user growth during the quarter.

Our strategy here is simple doing.

To improve your fist tracking all of platform we try to.

Lets sedated rational decision, making by providing reliable adopters multi layer content and as a part of medical treatment plant.

So share warm and that's on the channel is a woman Dutch you're so due to shop G. Chile cushion light appeal, Hi, Julie you book, which means that you guys, who will share more on then Fabiola yard. She also use on London sounds utility on top share you also since you draw your children.

Okay, and then of course that well, let you all for Monday Yahoo. Non go to you know the usual hossa. They use on tableau to you to go so you'll hold on that I mean do you.

You mean like the tone tuned up on I, usually she buy from this this is on those from we also brought back from this was a judicial do so just like the boss you sold on that.

So it's on what you meant holiday. So go turns on he is on the you sold I mean does flow.

About the U.S on Bandunda, usually should quota.

Somebody so true yet a uniform and now he's on up on this issue yourself. So cheap courtyard. She found that some on your so called you batches looming on the essentially bound on site you give your net share Latino each semiannual bombing simple if I love the boss about on they usually do you. So you may have.

Yes, we do see no change on the late growth pies shoot shows or can you really should be alone go how the rental ciucci charges on what your specialty.

Says I want to non us opinions are foolish on teaching away me share the Sunday It will move until a slow down once a day. So he has entered into somebody's yard. If you do the start and she wants to ensure on t. So the value. This is I share on the true due both to the U.S on Soma hope that's the growth engine gancarz insured so much and the art.

You don't but.

The first part of our strategy on our role as the top day to facilitator to how to use them make sound and irrational to human beaches.

At the end of October we launched a second version of our Amber Road's Dr list.

Well, we extended categories that a high demand, but require very specialized and accurate information.

We want to ensure that our users have visibility on with a best in class Stockers, a while creating the opportunity for these doctors to raise the awareness.

One day stocking from she showed us that 43% on total treatment with more than 47% on revenue contribution with directly from the day.

Our MBR on based on fast becoming no at the China like the true Dr. why did for the matter of Salix industry and not give it to the home pages on this topic as well.

A total of 196 doctors happy selected into the first and second in Washington on what Amber Road to document it.

To further demonstrated the widening foods nearly 1000 doctors applied force election in a certain debt within a month of the announcement.

I caught my eye on a ranking doctors and imagine what that expense actually knows based on you know skews the Emperor Doctor This to happen user makes that a decision.

It is possible to execute.

Not easily quickly and with greater please proceed [noise].

One out the read out on the ease and efficiency have been increased use of my life diagnosis services.

We completed 165000 to request EPS.

From 127 sounds in the previous quarter.

Another Great example, on the effective.

Can be seen in the city on she on.

Average of use on Nypro caustic by doctors on Amethyst.

Well as much as 21.5 times more than before they were published on the list on the specific categories.

[noise] to true hormones outreach force a shout out to suits on your though sometimes on further IP bulk will push a true pounds were essentially going into year UGI joy to adoption height range. So what is your quit made early reads on she said that when you go on social enjoyable Shinjin Batu leads.

Yeah, you see bobbing, so on insurgency quota share leads it should end up flow for than it was on higher due to the year with us on seasons on central we all share LTM Glen Charles is on tissue hope to sort out what our triple just this year more social channel partner, what can go to the gym and don't like GE share.

So should bother you balance the bombing channel NTM, Glenn close on Telehandlers and E jets enjoyed by postulate.

You can see weighted or what.

How we supported the balance of intellectual property by professional content creative Oh, I can not only did we deploy resources to help them establish share person know about pages, but we also offered exclusive nypro cost of surgery at <unk>.

Aesthetic doctors and plastic surgery conference of Chinese medical Doctor associations.

The feature sets out a nearly 8000 medical practitioner signing up.

As I stated earlier building on reach and the chassis to content ecosystem is important if on driving long term growth on what business on.

Our solely on ambassadors project has stated range.

On to me by users loses knocking on June.

As of October nearly 8500, a premium articles what generated attracting 481000 to sign up.

Project official accounts are we on interest has attracted nearly 9.8 million fans.

She on to how this relationship decency the heavier for sure yeah whatnot that uncertainty true Cellengine on income dollar per well see on how your dog socialism will equip whats the Egencia Alicia Jim Jim. They told me its always on top of from <unk>. So should play conformance always Soulja you may be on how to do it.

So this official shovel will then to reality value social on salary which was.

Based on data from our castle Industrywide recovery was evident during the second quarter although.

Although it was gradual specific trends I emerging as no such growth humans have returned to a day.

I make levels with Jamie on the reservation orders, so were solely on increasing by 40% year over year.

Reinforce our reputation as a first choice in magazines that expense I.

Particularly from non surgical treatment, we focused on three strategic initiatives.

So schenk woman's really Jim I'm Kinda official fillet selmo doors on course foolish easier.

<unk>, which helps on the adult depends on Ghulja charge.

Chart T. volume quotes on being of the they are focused on two sons. Other people teach it sounds you suffer a greater share of change you can enjoy watching she has she while you watch the Big New York, which I you may sound with assurance on South So true Dischinger took share hope on its on Salvador to me, it's the GAAP total.

On the other half will also share studios, who try to help him pipe. So that she is on since we don't you will show up on shelf with the trend. He showed what you're what you're supposed to just post the title for gold.

[noise] four on now that your curtailments be offered on our platform. We focused on governance I Cross checking details on service delivery you showing that contract terms had a standard level of certification to improve authenticity, Oh and ratable treatment options.

Second we revised our evaluation system for MACI and upgraded our.

And who's making the range is clear and more detailed at.

Every county, you touched on it easier to make rational decisions on which treatments to select.

Lastly, we offer so we on be hard to consumers with the option on pre paying for a number of children from an authorized and is a good day.

So typically from Citi fight based on how much it.

Hi, standardizing the service process, including clear listing them mature brand. She made agreement and Doctor qualification on this initiative will effectively protect our users interest shorten the time it takes for a user to make treatment decisions and to promote repeat purchase.

[noise] well know from gushing handled on H. and value was helpful. Just shoot warm and which engine condemning law will then zone hopefully on site Nagel could you, possibly do from in the teams on the Ocean.

They cohorts you people you show rate thoughts on the use of our Celgene nearly shouldn't go sit on hot warm and gel shoots really caught off would have been two or shouldn't do push you on color. So that's an awful but he may have you all I can do without.

We are pleased to see that China's effective control on that pedantic situation has shade I'm more positive light on our business, we will continue to leverage our competitive.

Competitive advantage in content technology and data to provide customers with without even making solutions marketing solutions would.

I believe that even facing your market dynamics, we remain focused on expanding the debt.

Oh, the offerings by providing high discussion that you kind of can service that generate even more value for them out of a static sectors industry. So.

Some in show on the sample you mean, just on Sunday told us how old's from call I would now like to turn the call to over to mean, who will go through it.

The quarter.

[noise] Oh, thanks, Chris <unk>, please be reminded that on amongst quoted here, we'll be eating on the please also refer to our earnings release for detailed information of our comparative financial performance on a year over year basis [noise].

[noise] quota plenty plenty total revenues were RMB 359.6 million.

Up 18.9% year over year and in line with our previous guidance. The increase was primarily due to increase in the number of paying medical service providers, who who's practices have gradually recovered from the impact of COVID-19 pandemic as it becomes better controlled in China.

Within total revenues information services revenue is on the 265.7, moving up 23.9% year over year Reservation services revenue was RMB 93.9 million up 6.6% year over year.

Cost of revenues were on the 54.7% millen up by only 1.6% year over year.

Total operating expenses were RMB 300 is.

Hey, honey to 35.1 million up 46.6% year over year sales and marketing expenses were on the 221.6 million up 41.5% year over year, primarily due to an increase in expenses associated with branding and a user acquisition initiatives and payroll costs.

Due to increased the number of employees in the business development team.

General and administrative expenses were on B 50.3 million, a 55.4% year over year, primarily due to an increase in payroll costs associated with the expansion of an administrative employees.

Research and development expense as well on the 63.2 million.

Up 59.7% year over year.

The increase was primarily a result of payroll costs associated with increased hiring to support product development, which is in line with the company's strategy of strengthening its.

Its technology and big data analysis capabilities income tax benefit was on be 16.3 million compared with an income tax expenses of RMB 2.9 million. During the same period last year think income tax benefit with the rise from a change in approach.

Preferential income tax rate one of solely on subsidiaries, which resulted in a refund of RMB 16.4 million.

For tax net income.

For tax paid in previous periods.

Net income was on be 0.9 million compared with net income over RMB 31.6 million in the third quarter of 2019.

Non-GAAP net income was RMB 26.4 million compared with RMB 40.5 million non-GAAP net income in the same period of 2019.

Basic and diluted earnings per share ideas attributable to ordinary shareholders, while on B 0.01, and on the 0.0, respectively compared with RMB zero point of 31 and on these your point 29, respectively. During the third quarter of 2019.

Now for our balance sheet.

As of September Thirtyth was on 20, we had total cash on the cash equivalents restricted cash and and term deposits time deposits and the share.

Optum investments of RMB, two point 81 balance compared with RMB eight two points 84 balance as of December 31st 2019.

We are closely monitoring the easy on going back to the October 19 on consumer demand and a sentiment as normal working conditions resume in China.

We are cognizant that there are many on news relating to overall macro economic impact of the outbreak, but we are confident that the fundamentals and long term drivers of our business remains strong.

With that in mind for the fourth quarter of 2020, we expect total revenues to be between RMB.

$420 million and on the 450 million, although we are seeing a recovery across E commerce industry in China. It is still relatively early to fully assess the upturn makes long term impact on business and the markets in which we operate.

So I want to remind you that this forecast reflects the company's current on a preliminary views on the market on operational conditions, which are subject to change.

This concludes our prepared remarks, I will now turn the call to the operator and open the call for Q on a.

Operator, we are ready to take questions.

Thank you, ladies and gentlemen, we will now begin the question and on secession.

If you wish you ask a question. Please press star one on your telephone and liked from your deemed to be announced to catch on your Reclass <unk> past the pound Oh hash key please limit to one question at a time per caller if.

If you have follow up questions do you reclassed to rejoin the queue by pressing star one again.

College, who asked the question in Chinese please repeat in English immediately after once again, ladies and gentlemen that style one for questions.

Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.

[noise] well talk about 20 told channel whether to do it.

It is an issue one which I hope you can just hold on the Baltic Sea socket yeah.

Yeah, Tim ill hold true.

Great. Thank Jose handler from basis.

Oh yeah.

Yeah.

Uh huh.

Ladies remaining book, taking my question, Okay, Let me try to give us any color on both the industry trend.

Right.

That try to interest and opportunities and what's the outlook for the industry next year. Thank you.

Oh, well on with other when she bought a.

Since I was how hard it puts on.

She's olefins on cultural kind off since you hear the it's on to Greenwald.

He junkie myself with the dollar you change on the shipping.

Hi, This is on loan growth as it goes on to your Ecuador, Yes on sort of hand on something on the day debt.

We appeal to see that recently day industry has recovered to on the NAV will also be PREPA damage our performance definitely labus show that so we ended the industry generally have bounced back.

It's on junior notes on versus interest is all I can Ah Tony until you show pass on goal are assigned to us I'm not sure how many of those RIDEA non dollar where you're familiar with the bush on different time audio reopened shown on the appeal.

Mandiant on Holzhauser LNR you May hear you guys touched on several launching senior notes I could option on her thoughts whether you go to the on shot on Mcconnell since she image multimillion dollar value Bush and the real tall.

In terms of timeline and the low point of the industry was in February and then watch right at the operating on the call the 19th and we sell a series of small rebalancing. They may and June August and September was steady.

Yeah, and it's a traditional peak season, and with big promotions a major platform.

Hi from there has been on your consumption growth Machlis that is true Ms and services.

[noise] chunks unless on Canada socially you may sort out usually is on social or social or you may now you need to cut another goal so any change on that.

You go to jail, what are you gonna pursuit Belgians she lost share on things on so now you don't quit for Darchinyan any disruption on Burundian. That's all you agree more growth could on job continue on into Saudi higher units hazard.

By take rate, we saw them based on the damage impact in a non surgical treatment and that the largest impact was on surgeries with higher average transaction matters, but these are the carbon graduating.

We Oh, what total transaction modems has a recall back to the same level at the end of last year back to their steel gaps in total revenue per site and.

Sure. He is on his grim or Utiba, we would always change on the searching does your growth with all main impact from the artificially on the Hollywood its on on social Gosh, you finish the debt or how he is also on a GAAP image. You go telephone does his interest short should physician on one.

In terms of a recovery, we see different trends in terms of volume and the growth rate a lot on has almost it called right bad industry growth rate, which was far from a pre pedantic lap over 20%.

On slide seven I, just you need more time to show communism.

Hi, the management.

It's usually I share your thoughts you hotel on that side.

Sorry, just one follow me on a woman on cannot share so Tony I know she's on selling you may sell for in a potential share. So so I, maybe inching shown through leverage of course.

Bill on your daughter's always on our cash is just so you know who you may accounts right you might just hard on guidance you myself in a country Orla put sharp pull charter to shop.

So its owned on Venuto Clearbridge it comes out of it.

Market education has helped to expand its consumption on medical aesthetics payments and service from.

On each marketing hype fashion and ability to that mainstream.

Medical aesthetic concepts, such as skin care, and he aging and they're having pounds I see more and more consumers.

Yes on that magic with debt Ics consumption is reaching a broader audience across more H block and occupation backgrounds.

Our social or the you made some on a central a bunch on this on me.

So moving on to try to do on the international image I was just like on shoot if they could change on that.

In Mount has also been receiving a rather that option for surgical team is especially for those who has a higher demand for beauty.

Yeah, what I, usually don't go on they salvage or true on the human cells. It showed on sort of moving over there. So as usual here based on the Oakland Inc.

Due to the limitation on overseas travel users, who used to choosing treatment abroad in Japan, and Korea now seeking for same quality service locally.

Yes, yes. The image you go to Gen. The teams don't tend to congratulate joggers on on Italy, who cannot attend goes on but so.

So you're down to M- curbishley chimney, Michelle Mulder could on jobs Youre on insurance I joke, Charlie Sheen going door to see Salvador Jude arguments is how.

We also see that standard that institutions or the price to get more price sensitive new commerce because at the end.

Testified on competition and price war.

A telephone call me on the Science Union Bothers us off on Utah image you coach on T. Shorja size socially email from in US just on we should be about she's on book value. So I'm trying to dollar change on a cook. So m-, there's on high who's on things on the initial thought on the scene Salvador roots from Nemeses Huh.

Zone or not so sure. She is always our tons on hundreds of people face should they told the Giada momentum you may saumil views on how well density well. So she didn't start socialists offers our CFO will yield suits on household laid some zone that you may Salvador, our yield on top.

[noise] metastatic service providers that have tied to those spending on marketing expense for such coaching and.

Some of them transferred apart on these budgets true, though to use acquisition from nonsurgical due to various microwave alignment.

We also on the pricing.

We have produced a surgeon customers it remains to be seen those price sensitive consumers will come but into longtime consumers.

He might you go those shows your goal females open so that debt.

Social and email you only I see two liter soda earlier like whom.

Who many of you met some of their individual who will open on a whole range socially you might what she'd <unk> Gulf LNG. Other you made some real cool non two even if your goal I jumped on several friends sulfates or the charges Seo channel.

Its issued holiday Intel fail Yahoo sodium channel.

There's no substantial change in the value of structure of metastatic service providers.

Surgical team has remained a major source all south and profit.

If the uptick of consumption on I'll begin on level achievements failed to translate into demand for surgical and other high value human data.

Likely impact on the service provider is that there will be less willing to pay market expense.

A follow on Yahoo, Dot ruled on Gi M- schumm with salvage on did you go to the deal flow we of course on low on dialysis. So Chico Naples pension Jones select Shamil fusion with Taleo wish on what the trend is shot so share Yahoo ship on on to adopting them on either foolishly I'll see you go ahead.

Other children, who worked so share similar you may salvage on mail to adult they'll how value rich yet traits you go here over the balance out on a from nickel they.

GAAP that's true.

Beginner level users and their team is creating another potential problem pressure up on it service providers.

After direct customer topic, but if leasing cost him and that's very satisfied with the service they get net pay the reviews on the comments could have an impact on the entire industry as well as the institutions.

But wish on how they are just as I see on multinational a woman GE may some of those Salvador woman Beuchaw Thingy lumbar cuisine, shada too, though could range outages channel.

I will comment on getting on to be leaner hydrophilic on shot up there's an element candidates I teach on passing on the assumption has on it to its on a real Monday may some of that didn't believe non thought of and its you see youre on each are you shot at doing share more loans on non hunting davita passengers Joseph.

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Because I see the data from our past wrong show select like oney or mid or percentage on those product line to average prices are low 2020, RMB, yet, but some data from other capacity from well show like one that 70%.

Try its actually has finally reached out and zone transact Oh My day without those.

Pricing a range around my thousands.

[noise] are they are you know on the heels on wall.

No. They move on it you know to adults issue that the outlook on the machines on our Union Hamir Jones from Jeff with potential through don't toggle I'm, sorry for Toyota and so now you go from here Tom Huh.

We expect to see that.

Right it to gradually recover to the pre pandemic level of 20% in 2021.

If we could have kept as such good control in China.

She gold zone. So we didn't Giada theres just on you sounded who puts his eyes socialism in some zone.

Service providers will gradually increase marketing budgets, especially for surgical treatment.

A chilly other targets that teach out value then they are so kind of other more sir John we're sold out your guidance alluded to your interest she voters OCF margin. So more so this all these people got fired on we thought I'd value on the cushion module from.

Institutions adopt south promotion and how selling to to see solid market and there was a pricing war going on but finally found.

As a service provider just cover that these projects are in any patient and lead to campaigns and a dispute.

Hi, Jim how father no question. So your full year. She on John T Force you. So since you are getting shaping don't self reserve size any you may sell almost on as usual don't on the adult congratulating them on June we're going to you. So you go no prices have been so post <unk> orange on Tc saw that day.

So opinions on the Wasit, how much success on on Hulu, So on the shelf phase or what's your thought on the T. zone you about on.

With the lead the Keytruda, how CD balance up industry light you service from Us we.

We will concentrate on refining our service to meet consumer demand for access to the doctors.

On service [noise].

On.

[noise] damning increasing [noise].

[noise] diagnostics.

And on the list and from me I'm going to pick up a beauty Cox.

To better serve our end users.

[noise], they took a bunch of liquidity position.

So that's all.

Thank you. Your next question comes from the line of Brian calling from Citigroup. Please ask your question.

Hi, Jane zone use on <unk>.

It's just it's just all about your work force yourself Winchesters essentially the woman's on to the Youre doing from a feature on the non.

Got you so youre talking about the Yoshino force on when you sell warmer Aarding, our branch and book study, which is on <unk>.

HM She's all that took over from the 60 l.

Hey, good time shouldn't it shouldn't change on yeah.

Okay, well trusted myself.

Based on our on the bond H. user rose or what is solely on strategy for monetization, Inc. And do something was and is there any update for the CPL on subscription products you mentioned that before thank you.

[noise] assertion.

So on children on large on now Youre pool per visit you made a huge ends up going I share will never relied on us on and it's only on Saturday.

She is are you would you sort of caught up your thoughts on it but on the other on the cousins higher while you're quick on the other means yet.

Yeah.

Gross and net particularly Chromadex force that user growth.

It may wind up on key strategies in an extra day or two.

Two to three years out we day expansion on the base use characteristics and and.

And at different stage, where show greater difference.

Oh on it's all put on for which I mean, some volume total its usual potash producer but go.

On daughter, Alger with homes from GE that Yahoo, as usual hurt your took hold it.

Showed on Yahoo self interest so that's what she sees.

So we will put us on is on par.

Please be reaching a user per ducks are focusing on operations and understanding their needs ended the pain points in decision making progress.

Well users on different levels of clearance.

With our average data and on that technologies.

By these approaches we are sharpening your day decision, making cycle and improve moneycard moneycard usage and monetization.

Oh, that's relative from me on a diva leadership on Sotomayor, let Sheamus really no bullshit dots on you may use on the abundant in high value for your question I touched on you. So they are non assisted opinions that go on the Yahoo growth you saw so yes. It creates widget on ILUVIEN Taleo goes on Ocotal. This I'm not sure my successor.

Joan Solotar, Chile, you made some on Belgium.

Yeah on insurance you go followed on your who daily recall for that yet the tsunami Tricia you made a thought so why don't you will see on where you are with US all Nelson things it altered your follow up.

I by doing this we have several major projects. One is the first one day and brought up that it which establishing a machine like model NAV or end users to pick sick and connected that doctors ended the second one is a were looking to your true Nick on the liability.

Diagnosis share a enable users to communicate a face to face and high recently with doctors and debt or professional consulting.

And so on one is so young beauty card or.

We think that that's rolling standardizing on main street light treatment and a streak selection on those.

Service providers to ensure service delivery and his experience.

And the last one is medical treatment plan.

We can back in this way, we could greater resources on service provider and a customized solutions from June.

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On a junior lessors relative hills, I mean, the Virginia.

International each millions on a woman to generics and know how here. So she does just hungry Moshe so agenda to go the co fall until it goes.

On the auto was the Hutchinson.

So you know Tom just on Shemesh on his home in juvenile book, all three all of incisive hills hanging on to want your thoughts on on solid solution a charge on June.

You don't on those just on simple William day annual growth treated as soon as long as Hamid.

She is on schedule to though on the short answer is I mean, yes. It on away from a woman will lose your twoq on doors on your harvest on me.

She's also on city GAAP initially.

Your true the whole mcus nice reduce debt this year, a service providers were more practical and cautious about their marketing strategies.

No on that they may last cash and I stopped and new monetization products.

Based on such situation weight sounds GAAP kick ass, or we wont make some adjustment on the eighth to promote our CPL product.

And we we are still studying and gap from Washington Department out from your monetization products.

And there also.

Improving the whole quantity of our working well.

I believe with a marketing recovery next year and are in the near term, we will successfully loud tomorrow.

Improve on all efficiency on monetization.

[noise]. Thank you.

[noise] [noise]. Thank you. Your next question comes from the line net Vincent Yu from Needham and company. Please ask your question.

Hi management. Thank you for taking my question on the congrats on the strong debt a user growth and great quarter on Macau.

Question is on the light treatment part or the like nonsurgical.

Dennis Park.

On the industry. This is the more non surgically demands or like true.

Treatments mens.

On this will be a growing demand for like human lead to changes the user behavior and the day. After this remaking tested both online and offline and how we will still be on adapt to the emerging trends, while she's a balance and digital that you are non IFRS you could keep up.

So thats really going on to college, which you built from now where the winter issue going to achieve you may not that you've achieved a true individuals from Quinsa No, Michigan consolidation is on which is on one of those years.

Good day.

She really come into to meet you commented on it.

Did you women's young without the interest and I say, two notches GDP growth huge.

Indeed this year she that she should be on why should it.

She is a channel.

We remain on.

Well my Havili tons on changes to.

Face all showed a human shamil non answer the others hold on non bulk was on t. wrong searching social true So my share region how sandal.

Put on the team made based on the Shamble on your put on your solution on the you'll see a little bit on up.

Mm.

Like medical aesthetics away from us.

True now surgical treatment, including a new money massive treatment like a body Oh baby injections all strata. If for example, and and energy based services like on days actually men's force do tiny all spot removal purpose.

Use hall in you saw from medical treatment adopt a variety of decision.

Do you do go could on how they're going to sell more fuel source zone. You may also from in the tolls on Dol a commodity quarters, you may switching from industry research on crucial.

Hey, chip on from end of year shows on technology will now start to change somewhat like a prominent dunson CLL, who didn't jive is on which handles youve on content and maybe shop joggers on call hurts. Your non scenario you doing the trial is also moving to the its household or you still not you didn't he also true do you show me a large on a joint venture.

Hi, good Shemesh on tableau salvage on Louisiana, She's even socially unit share more should be on using them.

Non surgical team is with high value such as.

On the March quarter.

Coolsculpting and debt picosecond laser generally caused Ah.

Ah from 5000 to two or more than 10.

10000, each unit so.

Hi, there hi prices. These volume is a risky and imagine any set higher crime is for Dr. skew.

The decision passport lease payment is similar to a surgical procedures.

[noise] Tony on the song true source through social machine, how general nicely on labor some will do switch on when it was on social won't be fully about how well its high for the 10 shopping on Shamil EG. My sense is on on the you saw that usually onshore Libya on call put on a usone total share was how you fit on GAAP.

Are you doing a financing sovietologists, although jonah can socialists on what you'll be larger.

Similarly.

Daily injections and such as ironic ace it injections to a GAAP says four had.

On the I. region any shoes.

And as value. It also said high technology Ah Ah technical refinements fall doctors.

As a result.

Virus significantly between different doctors and interest hi, So those decision path is also similar to a surgical treatment.

Sorry, you sounds as relation lurching image somersault share on still also luxury officials who.

Tons on shelf is or it didn't hurt yourself would you use social on these high with GE on a higher at home on their own she's our energy bonds, which I'll return to address your solvency total book and its all sounds little. Meanwhile, total book you saw you will show very often times on schedule to assumption among larger shelf is a day.

LPG cheap so force, it's only the boot pose.

Paulson off momentum will share on the losses on that May succop on most of those function. She is on your especially for about on the units are now.

[noise], although the a bolt on mashing animation day Lightstream is on nonsurgical, they consume a combination and debt decision has on more or less the same as such growth humans.

So for these payments much EPS for surgical treatments were provided to consumers with a true for our decision making.

On that that took it includes like we already provided like that true Endesa Party UGC content, a massive at the U.S waste transparent pricing and authentic you know certification on both from a key area and equipment used we also made in non native.

Approached like MBOED adopted as we mentioned before and so we are really hard to help improve decision, making efficiency and ensure service deliver a quantity.

[noise] Jinyan Seamus just on non zone, so don't be Dakar, the European laying on sure solicit shots you pop was industry as well. So you lay the lumens per unit Chalmette non.

Just on what your Minnesota, She says I use your thoughts on looked on motion has on it just on Monday. The you may somewhat loans on non common themes on Joel non abundance you see margin usually as you know some on the cut on jockey Decently Omega since you buy any then maybe net cheapened.

She brings on which ones on the <unk> Yeah. We show you. Some total Hooman do you may some of the trends I shall result should I'm going to day, you may sit on timeline on since it's only on the show yield on a share Yahoo. So on T., they're shopping on Lena European growth.

So I image you go now on a shot on goal could on so much on holiday Liberty.

The reseller channel salvage auctions or goes on comes on Shocker hurt you need a pension Vincent on we'll move on to and so now contribute towards on income daughter, Chico SK oil mainline television, they're kinda <unk> zone shelf is on a quarter congrats on where the chocolate.

Another Rhapsody cash.

Really the nonsurgical actually balance is beginning level, she must such as I call auction and a needle free injection. These humans have average transaction value would be low on 200 on b or even below 100 on b, which actually HM.

Some other platforms took more than 71% on total Oh total eventually almost and known Vasovist Iraqi or risk and require no enrollment offer physicians begin lebac Siemens have more potential consumers upbringing growth.

For the medical aesthetics market, but however, overall affecting how was weaker and the conversion rate to big ticket item is relative value.

Well, it's actually mix consumer choice.

Dependent on price and convenience.

From the like of the SEC. The distance. So we are increasing supply and expand into more service providers as well as providing more come to consumer with actual subsidies.

There was a shift out.

[noise]. Thank you. Your next question comes from the line of Leo Channel from Deutsche Bank. Please ask your question.

[noise] Anyhow I don't we don't really on wears on how she said this whole if you want on whether when he was acquired on your children you got your GDS, Oh, which I'm sure check on each I'm quite true types, you might share a huge fallout century ti on the system from us.

So we need to me I choose on rejoining BBAM. So thank you for taking my question are we see that secretary competition is becoming more intensive my question is that what initiatives well. So we on tech to increase your market share of the competition you can thank you.

Sure.

Vince I finish on I'll talk radio will depend on the on telecom. So I found out on a day so.

So your feelings on generic image you go share in solid core cotwo phones on ROE. She's this omni channel. So you know shortly on the.

Touches our interest on she wants to shop. She on senior notes on TV shows on the chenier drilling on balance sheet, even though you've got some zone three high returns on July she's a share aren't unions I you might you go shouldn't auto policies are so from interest on the on hydrophilic agenda.

First Oh, we can definitely will stay there.

During two sides one is on the.

Much insight on because of the net impact of the Cobi 19 on that told on outstanding by medical aesthetic service providers on your definition declined compared with the previous year. Despite.

Despite this we were able to maintain Ambrose so and that way. We believe this is indicating that we continue to gain market share in the total addressable market.

Oh sure on whats your highest value grim or you don't growth with dollar each industry volume Oh, sorry. It's also saw you on in May and June PIVENS Archer. There is also the only on child. That's hard you are especially on John you made you go sit on top on since you know Glenn the initial well Miss on to ensure the highest soda to get away from it.

The image you goes article phones on the city is on so again, we will not see the job. After you sell core course on local loop.

Now.

Incentive mediware would cover at industry growth gradually return to normal at around 20%.

And and that marketing spend will return to pre dynamic level.

I like it anymore.

Ah Tony NGL work on Thats other like on a she on to you, but if it's on <unk>.

So this is our social and email E. G code on job for you, So yachts, which I'll touch on me much on Michelle well, then zone tissue balance itself I mean, they also true.

Also on tumble option. It appears you how are you. So you could see from chalet saw timber on she's will beat your toolbox. She on you somehow so premiums. It. We've also use on bundle channel walk on that you sounds on the usage. They shop is on T. won't go Hollywood yet.

Horseshoe going door to juggle your shot.

We have unique advantage on to depreciate it asks on either.

We will remain this advantage.

Meanwhile, we will find a fighting each day.

Category beauty, our advantage on the Doctor side with 92 diagnosis.

Dr List and other innovations.

To provide that.

Moving to attract more spending by some impolite.

[noise] wholesale or then Jones tissue youre, while Sony attempting to true woman Ginger Horcoff Yoshida closer to finish on the boundaries Condotte social cheap Cholbam on as you go you on the Leach on share option higher which resulted on the on.

Our monetization products enable small to medium service providers to acquire high quality uses a two hour platform, we Ah Ah consistency to improving this and to highlight our ability to help those a small to medium service providers and debt by users.

I agree on accurately anyway.

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So you'll hold on the share I, usually don't by shipping zone generally on pushing in the image on hunting high.

We'll continue ramping regionals I sit on the on the true so.

You mean on Monday here, that's how is your GAAP.

Also just would you like on a warm and I meal. So he was on GAAP dysfunction Gulf re woman's I you would on the South I don't know Dan doing large into the future.

On the on the deposit side that despite a day a dynamic we kept our own spending and investments.

Reflection on walk on medium interviewed a trusted and medical aesthetic pass them, because we opt in my Oh optimistic about the long term effects of the industry. As a result on a lot M- you has increased and a record at high a historically a high.

On a solid ground from market share growth on either side.

So I just noticed on when they you from your non sounds from these I shouldn't really no channel also cash.

Because they are GE said, the Sun's you can let Jason Kim as you heard me on you got from that you've actually the channel one woman to it'll be like social.

You sovereigns or kind of what you saw from into on board. She on you somehow so he means a new policies on downtime you. So I'm sent people.

People use on so if we you touched on so both on those so but she is going door, usually use on geography picture for you the international Suzhou Chongqing elements that you hold on to your <unk>.

To improve outcome, how to give 'em relative we are using our conditional boundaries in a surgical team, especially on the doctor sites and to have started to find calculation on penetrating into more categories to create a higher entry pass.

So official from in the room and see the image from women's high Sheila can be doing in June on Trulia charge on Chico I scaled up towards that didn't didn't timken shocker being homework would share come fossett true about share. They also pose a challenge to it you go to work on hope she so do you.

Go to fully vetted out.

Full but now surgical team as we we have adopted a strategy of following the competition in the beginning that average human expanding the number of service providers and execute on our platform and providing subsidies to ensure our pricing loans.

We also improved cooperation with service providers to improve the quality of the memory.

To reach your goals I either goal could on John Chaney Shamil share on tissue, let me its a cop three you share tool order change on Shamil Yoshi on changing pinch on surgeon hurting July did you for Sofia, Sergey given a patient per gender.

The insurance you go someway made secada flow salt towards sort of on the shelf is that he won't go how the force yet you seem genes on Thai Hot as usual chart for the Comdata should also.

We launched a solely on beauty cards, passing on some non surgical treatment. We selectively are based on the commented on market conditions.

And yeah.

[noise] [noise] [noise] [noise] [noise] also Inc.

[noise] Oh silly, we we use I'll watch movies on if you will.

Deciding on the SLK services and also internally.

Training on those offline.

Much has to go to gain more market share with our adjusted EPS experience.

Sure and that's I think.

[noise]. Thank you. Your next question comes from the line of share from 86 research. Please ask your question.

Hello, Thanks management for taking my question I have a follow up question on our annual range. It's can management provide some on a more kind of on actually picks up out on your part that such has the tech grads health she yen or hours. So we I'm doing it.

<unk>.

And go into next year do we have any other product in pipeline on thank you. Okay sounds anything on key on visual index you out one of the GAAP idling. She should lie on the net intention on them launching Bonnie towns or share deal on the net seen contribution actually yeah on makes it peak on Billy said that Jake on should you wish.

From metrics on easy tsunami on Jayco will not be a male net championship day, Jake I don't on that she said went on.

[noise] [noise], okay. Thanks, a lot.

Let me try to answer your question for any new put on it and business Fortunately yet and the.

The message I think we don't have a lot of data to share at the moment.

A foot so yes, we have being upgraded that service into a more comprehensive and the dedicated a team to have a better services to our high value customers.

Currently they on as well that they are not contributing majority or any substantial revenue on our.

Topline.

And for the the the the beauty talks model.

We just the studies at the second half of this year and we are trying to make the whole a user experience and the whole operating process being more efficient and trying to tackle the light on surgical non surgical market for four from users.

And we have very quite a confident on the future of the news services.

And we probably can share more information in a more data.

Going forward the next few quarters.

And for all the new products when we penetrate into the new year I think that those services. He is always our.

A new categories of us if it's providing to customers other than medical aesthetics.

We but dental clinics experienced more impacts from pandemic to be Frank in the past few months.

And the operation recovered even slower but next year, we will continue to invest in dental treatments and attempt.

Other products like insurance products and for potential treatments based on a on the new business model.

At present, but from the business on a comfortable still a very small portion of the revenue compared to a on the revenue generated from medical aesthetics.

Hopefully that on your question. Thanks.

Thank you.

Well, ladies and gentlemen, that's all the time, we have for questions today, So with that we conclude on conference for today. Thank you for participating you may now disconnect.