Q2 2021 Mogu Inc Earnings Call
Ladies and gentlemen, this is the operator todays conference is scheduled to begin moving Charlie until that time your life and again be placed on musical. Thank you for your patience.
[music].
The speakers presentation, there will be a question and answer session.
Ask a question during the session you will need to press star one on your telephone if you require any further assistance. Please press star true I would knowledge and turn the call over to Mr. and eight and sustain please go ahead.
Thank you Andy.
Hello, everyone and thank you for joining us today.
<unk> earnings release was distributed earlier today and is available and the IR web site at <unk>.
Yeah, Bill Mogul Dash, Inc, Dot com Israelis and the business why your services.
Before we begin and I'd like to remind you that discomfort and school contains forward looking statements within the meaning of section 21 E and the Securities Exchange Act of 19 debt you pool and.
As amended and and is defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward looking statements are based upon management's current expectations and to cover and markets and operating conditions and relate to events that involve known or unknown risks and uncertainties are all the factors, all net which are difficult to predict and.
Many of which are beyond the company's control.
Which may cause the company's actual results performance or achievements to differ and Mckee and he from goes into forward looking statements.
Further information regarding these and other risks and uncertainties or factors is included in the Companys filings with the U.S. Securities and Exchange Commission.
The company does not undertake any obligation to update and you forward looking statements as a result of new information future events or otherwise, except as required under applicable law.
On the call two nights from more Blue and Mr. Sharp Chen Chief Chairman and CEO Mr., Raymond worn Chief strategy Officer.
The standard Lee Investor Relations director.
And maybe switching which way chain and the wine sign and truck and trailer.
Mr. Chang weighted reviewed the business operations and company highlights total.
And by Mr., Warren who will discuss financials.
And we don't be available to take your questions during the Q and et cetera.
Now it is my pleasure to introduce our chairman and CEO and Mr. Chen. Please go ahead.
For example.
Got you I got to tell them not only are you trying to articulate the operating.
Hello, everyone. Thank you for joining us on their second quarter results announcement and.
Fiscal year 2021 today.
What's really that you do and what do you see yourself.
Hi, Susan.
Synergies old and support a JV told me pins on the deposits. This RDR and I don't know our sub debt.
So what are you able to JV Subq zone that apart from the true for them.
Well you said that you know situation, though so what else can go from here.
And on the of course and should only be.
And what we do its all weights and what that's all the problems though.
Coaches and all that simple you're able to channel, that's all size and well talk and what we do know channel.
Jealous and they'll come from cool.
Well, yes. It all comes from father and of course, and non zone woman and that's true that you guys want a father and quick.
In the past quarter, we're continuing to see a high growth rates in the money you're broadcasting E Commerce, the giambi increased by 42.2% year over year to RMB 2.3 billion and the second quarter contributing 74.4%, although total JMP.
Mobileye has essentially become of course Andrey.
First mover of Black and commerce.
During the last four years, we have established a fabric differentiated shopping experience, which enable us to capture more growth opportunities in the course expense in China.
Well what did that she won't go to Yahoo, and home phone call that these off one of the most that's helpful and that's a wall, okay, who can deliver for jobs and I was hoping from go to jail. He turned off before the courts and whats about you do because all fulfil joke with a needle.
So John Okay, London to somebody that's.
And Uh huh.
Easier from Gotta jobs, Oh, we did a yahoo, and using freedom from here and how so well go that you'll be jobs and it then and the all Oh gosh.
I was handled at all and all that you do not useful and though she thought this all the time.
And this is awful lot you wash out and that's the vocal about Yahoo, Yes, and sell up items also gets you don't hold me sometime well my guess is that parties citadel. So definitely don't really have you locked into a whole growth also but she's also true Shelby.
Not only do we provide quarterly and affordable products directly from them and actress travel customers. We also offer much more through all coelce, such a diversified and fashion content immersive contraction and companionship this experience strength and our customer engagement and.
Force continued to spend longer time from all.
And shop with higher frequency.
Second quarter, and so took a quarter with seasonality.
Just my bad we have adopted and more prudent approach and turns off the sales marketing the nimble.
Oh, well be active buyers grew 20, 20.7% year over year, yeah, dish, and our social sharing and recycled and its wasn't there relative to like to acquire more customers with precise targeting and higher cost efficiency.
What would you say your foot she and I thought that was all he does that push and that's why I say like high school day to get a little meal trade school. So he sounds here this using hot and my thoughts.
And that's what's your name and see how the stopping poor to watch and see it up actually finishing so I'd say that Yahoo.
He's only south EOP with all your Triple net twice and he Oh Youre, who don't that's what's your name and that's what you know what Ah. Okay. You go hottest council to watch and see it seems and since you did she won't probably changes how they don't seem to go with T. and.
And so could you talk on your shoulder typical wishing her.
We're continuously and reaching a mobile shopping experience. We have launched a version all short video detail page, which captures the best part a presentation by I'll kill ourselves and the like shows.
Due from from the traditional stunning detail page this innovation and that was our users and also allows our customers not much inside or outside of the mobile like from to enjoy kilowatt hours ex clinician, featuring and matching and bonds and creating a more efficient and effective like shopping experience.
[noise], that's supposed to and how the channel is how would you.
And so I wouldnt read and hope or how soon so helpful. I see yourselves and wall, the guy with him and she will fight and and see where Archie and Paul if he doesn't do that going and yeah for though for a topic and well, it's all and once or what it says she does all that.
So I'll see you talked to handle that holds the war tissue to force you well know youre not ready to close the sale of batons and we'll pull down. The total you saw seeds zone trouble I mean, it's your mother and easy to book, that's football fans and jobs, and which I guess is how long do they called it.
To build a more sustainable like E commerce ecosystem, well continue to focus on nuclear well incubation and support from home and.
During the dog and Ive and promotion, our top 10 wells continue to brick and record to.
To kill else have each day.
Over 200 million cells over one live session.
And then the Taco house in the whole industry.
Okay, well also have the highest value per pass across all good life ecommerce platforms.
Oh, yeah globally and here, you've got total call, yes, and what would your financial walkways yourself and that of course seamlessly.
The CBS, who teach them out of trouble and should I try to 11 and yet.
That's true ansible should what kind of status on jobs and Tom supports the shale assets.
Yeah. That's helpful. A civil war fought on assumptions and again, all funded she's a lot and lot of shouted, Oh and Yahoo divorced from Josh pushing hard both on and go Holly.
And with a bunch of Harman plays a critical growth being empowering coelce and benefiting all consumer [noise].
No the November.
Conducted lucky duplicate cost to trace seven major apparel production sourcing China. This activity helped local manufacturers sell more products.
Being a single lap session than they otherwise needs and to offer a few months.
Okay, and life simplify and accelerate the protocol circulation incredibly efficiency, all various parties and into deeper richer value to our customers.
Oh jobs and assume that pushing sito mobile and tissues that actually was and how that could go from here and can who you also see talking total populate split the assets on the also where Yahoo, and she won't and how to go from here.
We entered two day for more value to our customers. We will continue to innovate smoke and life and that's sufficient better and fashion shopping experience for our customers.
Thinking shark.
Oh, Thanks, and good things like everyone does this is ramin speaking I'm thinking for joining our conference call. Today. So no I walk you through our second quarter fiscal year 2021 financials. We believe year over year comparison is the best way to review our performance and.
That's out of my stated all percentage changes I'm going to give you would be on that basis.
That's where you other than interest first.
Our journey for second quarter of fiscal year 2021 was RMB 3112 from either a decrease of 25 from 3% year over year. Jimmy for 12 months periods ended September 30, 2020 was RMB and 14 billion and not Hunter and 51 million a decrease of 16.1% year over year.
Our focus has been growing that young people like you bought something which has increased by 42.2% year over year try and be.
2316 today.
Our BB associate GMB from second quarter of physical your 2021 accounted for 74.4% of the total dnbi.
I see buyers off the out BB and the last 12 months period ended September Thirtyth 2020 grew by.
20.7% year over year to 3.5 from today.
So that's not turn to revenue.
During this quarter total revenue decreased by 43.1% to RMB 112.5 from you then try and be 197.9 million during the same quarter of the fiscal year 20 Twond.
Commission revenue decreased by 32% to RMB 68 point Ninemillion fraud, and do you want from 1.3 million and it's imperative of this creates and attorney.
From really do true then restructuring of the company's business towards LTB busy and I'll be focused model.
Commission revenue from the LPD business grew year over year continuously and was in line with the continue year over year growth in the LPV associate and Jim beam.
Marketing and services revenue, which is mainly generated from our marketplace business unit decreased by 71.5% and try and be 18 million from RMB 63.1 minute and extend the period of the fiscal year 2020, but.
The decrease was primarily due to restructuring and the company's business towards and LTB focused model.
I will now walk you through our major and costs and the expense.
Cost of revenue.
Chris by 40.1% to RMB 45.5 million from RMB 76.
Media and a temporary itself is gonna be 2020, which was primarily due to a decreasing and the costs associated with decreased aligned ourselves and I see where the day expenses.
Sales and marketing and sales and marketing expenses decreased by 73.5 from <unk> percent to RMB 47.9, and from RMB, you want 80.8 million and that's impacted our fiscal year 2020.
From really do to optimize spending on Hughes acquisition, and the user and incentive programs, resulting from the restructuring of the company's business and also as a measure we conducted to counter the adverse impact of copying I think.
Research and development expenses decreased by 45 from 10 to RMB 27.7 million from and be 50.3 million and assume period of physically and 2020, primarily as a result of I call transition, we conducted to counter the adverse impact of Carbonite.
General and administrative expenses decreased by 37.4% to RMB 24.7 million from the 39.5 meters and its impaired our fiscal year, two and isn't it.
Primarily due to a decrease on payroll expenses.
Amortization of intangible assets decreased by 1.4% try and be 75.8, new debt from RMB 76.8, moving the simple and obviously you had 2020.
Loss from operations was RMB 105, Entre point Fuck Me then compare was lost from operations, all five and be 223.6 million MSM periods of physical yet tried and tried.
Net loss, such a beautiful chipmos ordinary shares ordinary shareholders was RMB 93.7 million compared with and a net loss attributable to Mobiuss audio and shareholders of RMB 326.6 me that from the same period of fiscal year, two and 20.
Cash and cash equivalents restricted cash and short term investments were RMB 800 and.
Andrew and 2.5 million as of September 30.
Turning 20 come how was RMB on 1090 5.4 million debt as of March 31st 2020.
In summary.
We also have a subsequent event well stop and subsequent event on October 2021 of the Companys Investees repurchase a majority portion of the company's investments and the Investees for total cash consideration of approximately U.S. 16.
And then equivalent to RMB 107.1 million of which from.
The U.S.U.S. and.
14.4 million U.S. dollars was received in October 20, trendy as a result again from the investment will be recognized in the quarter ended December 31st 20 Trent.
In summary from the financial perspective from financial performance from effective GAAP doing the progress all business restructuring ship.
Shifting our growth engine from traditionally ecommerce to lobby commerce.
Looking forward operating innovation and our dedication to so much and the profit will deliver very differentiated fashion shopping experience to our customers.
I'll go live will drive our growth going forward.
So with that I would like to open the call for kidney.
Thank you at this time, we will be conducting our question and answer session and.
And our to ask a question. Please press star and the number one and your telephone keypad well pause for a brief moment to compile it Q and a roster.
[noise]. Your first question comes from the line of Lucky now.
Right. Your first question comes from like Charlie Chan with China Renaissance Charlie Your line is open.
Hi, [laughter] and shot I read on the clinics and go out after I got here and this together and that's what I would want to <unk> well was the yellow and once you like because you'll show total ticket character to catch and I think a lot of things you're quite a gym Beast also talking to some people yet, but the dog and cat events.
John and wage subject that I got from because we had again.
On an adjusted and assume that I can just across and you can hear shortage and I think that at the ALJ and hopeful that Inc.
Okay and.
So John Hi, and characters and different people and subject last broadcast from Cape Cod, and but generally it's awful day because guidance.
Sure.
Yes.
[laughter] yourself just true.
Even though and deal Concho and I'll just to see what see to a chunk of that is well suited for the EUV offensive.
The other and on the Eugene day, do especially and I saw you always hear you shop, our imaging and using a due to sit here and to a woman, though due to sharp shot channel. The true here. She says to US is that also due to just opinions from Minnesota, the a corner and that's a big and put throughout the whole day at home in the due and.
Saudi and hold true, yes, hopefully everything that you show that's it's a range on a whole piece and you kind of Oh no interest. This is that shinya teach and and those from holiday to a.
And yet I think it's usually something because she took and he obviously you got you show the sleep and just put on the usual day you sounds the shutdown. So you can see that way social video. He she had to shotshell and a whole new items sold out as you go home and go to a hotel she knows what she too much and that's it I should be items, you know took initial.
And the associates yet.
Just how hard and soft either do a simple.
What does he was also a toggle and and also so I think that you will not see them GAAP fees on door, though.
And he is all that channel and gushing, though so you could see two woman. She she has would be dealt with Uh huh.
Level, because when you go okay, well, maybe I will just translate the question and answers for that benefits all from the audience.
So the question was about the and Ah.
And so questions about the the and.
And the slower on a growth range off the GMB off from that will be especially in the business or velocity over last quarter and shucks on search and that was our number one on the Q2 was actually a season with a was it was a quarter was seasonality and number two and three west you are seeing some that operating.
In fact from the Carbonite and situation because a lot of from power battery, it's actually not 100% prepared and sometimes they are running out of capacity as rising raw materials things you produce the Paris and.
And number three and compared with the previous quarter I think the previous quarter and from the armed and from 2000 and lighting was actually request from quarter. So the previous quarter was actually and grow out of a lower base and this quarter and it's actually I'm comparing against a stronger quarter off last year, So and that's a three reasons on that.
And shock and address the question about the slower growth rate and the going forward I think we have a shoe from very good results on the double elevens promotion and investing from a strong performance from the and love your boss and business and.
And the welfare and confident with this quarter and as we have achieved our goals in the GAAP with them and promotion and Dot com and.
We are seeing a fair amount of results from this quarter so far.
And yet.
And she said.
And again, if you would like to ask a question. Please press Star then the number one on your telephone keypad.
Your next question comes from the lineup and Lucky now with AJ asset management. Your line is open.
And great questions and then what.
Yes, we're working.
He 17 range if that.
So.
And they have been.
Yes.
Yes, yes, yes.
Oh, and then cut that where you guys see from my Baby care channel.
Yes, yes, and when teachers, who.
And that comes from so you can do about once again that supports and.
And with them.
No that's it from the flight.
So quick items.
Yeah, and I guess above that.
Yes, Jason Campbell and quota.
Okay, that's fine yes.
Sometimes from.
And so maybe look I'll just translate question and answer at same time for you. So the question was about the double 11 performance. We have basically just a month ago and the other question and saw the cash we have received from the from the Investees repurchase up the investment so our number one on the double in Devon and promotion expense is very much.
Portland, and it's very important on promotion and.
For for for all the commerce platforms in China and this year.
And our focus is really on debt Mobileye I'll live video broadcast and business and the 100. This year, we'll have to their work our strong results I.
I think a few key points I want to Umesh I went and I emphasize is that number one our top house they.
They have each deeper on over 200 million sales over one last session and so.
So that's a very very impressive result, that's basically 200 million and sells over just a few hours that's extremely competitive results compared with all other coelce from all their life ecommerce platforms and.
And ER and that.
That shows our that's true that's basically and our results of our.
Long term dedication to life business, and our long term debt cushion to the punch empowerment, and how we and Howard I'll kill warehouse.
And.
The other question was about the repurchase off their investments so basically there.
It's a bit investments has no it has nothing to do with the other our.
Sure repurchase or other other and.
Decisions, we have made in profit markets and purely driven by as purely driven by and because you know we have actually make.
Some and.
Investments and rather than on companies and even relevant industries that we see appropriate arm. So one of the all.
Paul and companies we have a.
True very very good growth over last few years and they are and they have an event that we can potentially exit and part of our holdings from the company. So thats why we and receive some of the cash from the from these photos.
Total company and that's why we see for cash and answered. This cash will also be reflected in our cash balance as off and on December 31st.
Of the 2020.
And.
And and so and.
We can't hear you that this has nothing to do with the timing of the repurchase of our own shares.
We repurchase our shares last quarter was primarily because we have a view that on the companys metabolism today does not reflect or does not fully reflect the no. The full margin cap and the the full value of the company or the long term growth prospect of mobile apps business.
Okay. Thank you.
Your next question comes from the line of Veronica Zhang with China Renaissance from your line is open.
And I can't yet and a shock when and how loyal and out collections and hockey go once and she telling Kathleen and you keep an active user a weighted kind out just from a year over year net.
Actual backer, Josh and actually worked from Q over Q over Q and I kind of want to go shopping you had to pick a active buyer and she'll be cool.
Decline and that means that your day holding true.
And when you buy skyway outs and assets and people can actually go a lot quicker.
Okay, and a high so how can.
Adjusted to how you see away and I wasn't I think I actually fiery channel switching.
Ah 64, and even when.
Ah, Yes, Guy and one thing.
HM Yeah, you could say how range.
Uh huh.
And thanks for taking my question My question is regarding debt.
And <unk> active buyers, we have seen a true mouth occupy decline.
Oh, well terrible quarter base and just curious about what is the reason behind and hogs and relocate the user growth going forward well I understand their third quarter, its LLC to flat, so and color and now that fourth quarter area and they're coming here would be helpful and keep.
And our the true and it doesn't look like how to hedge and see it Chicago deal and he will know.
And so easily on yeah, you disclose that you've Cushing you would price you know cause a total each and the deal with US again saw Wamsi, let support yes on that trying to see the Honda just easier to book and solid Oh, colder and yet seen bogo and had the opposite and though how just baby to Oh, just to you and I do not.
So the game so.
Hi Mill Channel was you go from two cheated the city that's a.
This is due to vote, yes on those you don't know Copel to judge Hodges baby and how to do it yourself. So you do go on and the Copel Force you to do the total from Yeah I saw the channel I, So finally shipping and Pos.
I will now conduct also so we'll cope with it puts your thoughts maybe I don't know Copel does your opportunity there and of course, you Chanda NATO and more so sweet deal and that's how we'll talk on and so on how we'd be down you're bound jewel and all the all got out and sort of saw he way why would it goes on teams are they getting done go for could us from and therefore should finance and.
On the 60, if he's on the door. So we do it took US a day zone, so that and so I'm not tired of being Oh. So did you the true your cars with how you can come and the and door for adjusted EPS on a diesel you'll tell us that subtitle C.
A couple of months behind us as yet she says that.
And she or he held true. So I'm you know if you don't come and sort of eating total how's the shot down though.
The other and you have seen and will not Jeff's out tires that you go after the EPS on a do it seems only met you a net so that's available from.
A two day to to sue them and the whole could attend the home and the opposite but I bashing they'll continue to go troubleshooting to which is that what are the items on trips and so if youre, putting a vessel of and the support youre sort of the opposite interest for the air freight Holistically.
Could it be let's put it on the Saudis your child to sales on the table and until sitting on Canada and that support and you Oh, well Yokokohji, that's and Doug that's a new accounts on the on the focus and I shot Jonah.
Oh, and just maybe I will just quickly adjusted our checks answer so number one that you can see that we are actually going through a transition from the traditional E commerce to the line of ecommerce and Pepsi.
Moving to change our tactics as well so were seeing that the live users tend to have much higher ARPU and the margin on.
Much higher frequency and the FERC, our strong royalties from the platform. So we actually badly these customers more than.
The traditional E commerce customers.
And honestly due to the competition I think you and lots of two years you can see that the cost of customer acquisition has been has been increasing cash.
Referencing.
So we reduce our ex marketing.
Marketing and sales and marketing expense in the and the traditional competition in the traditional competition and for for income has customers rash and will focus on the on the Eurs on the customers from the light vehicle housing auction channel. So this change our tactics as you can see.
It has to have two results and number one we are seeing that our total number of active.
Active buyers off alvey has been increasing and number true.
Total expense off and just marketing marketing has been.
<unk> has declined dramatically.
Oh, yes, and shot our traveling from Kelway problem, and I think I quit selling it and doctors and take a simple click cannot south.
Yes.
That's.
I also want to go back.
That's correct.
Oh, well my ex caution is about the take rate I take late sales sat down and.
This quarter. So could you please elaborate and more about it and how sad and going forward and appalling. Okay. Thank you.
Total debt.
Oh Crestwood equity about this Oh go ahead, and they go and he had to Mississippi sales to the yield and the two crude carloads. So you Ah two slightly from cardio and why your criteria, which is.
And at a whole adjusted to dance on anyway, and I sort of like you do it support to do that and so.
And none of that is what I do and I apologize I guess on the take rate.
Hi, Michelle maybe talk Aldo.
And I'm not a neighboring from the yield so sadia and Perdigo of course and zone salty quite kind of how do you go from.
But do I take rate, if we're eating a shutdown.
And also the that's a result, and that's why you don't get a whole a woman and credit to put Noah. So I told you. The yeah for sure you got us on and we always interest is short history and should do a period or how do you see a level as it seems.
So what you will see that seem to leach and know what that has helped with sort of a young you. It and so what are two ballclub copel to go and you have to listen to the teams of people from a chosen number.
I'm not totally from total the other three home theater chains.
Sleep easier to create one song from deal with me I said look one, though and you are.
And then and she is its volume and data and try the wife and many touches on and Uh huh.
And as you look through the shutdown to some of the shutdowns, we ought to be items that warm and does it meet her from here.
So anyway.
Hi, warm and the front door shown pain had she goal no true approaching that should sort of debt assisting suicide sales to bullets or whatever and they should be.
And down a bit on the total to do the.
Hi, John does the Oh, that's handled on Prolia and he doesn't want to losses on a covenant and the you didn't and got the open order to live and daughter time, and she says how index and that.
From a teacher to book a go on and no further west and I said, I guess waiting to feed on some new accounts and acquired sit up.
So it up and going and.
A whole could we see widen and those incentives I think that's you know Sarnia suite and the you just if you know how to your calls and the question.
He said the teachings without having to.
Channel, which is quickly translate trucks and I'm sorry, I'm. So the question was about the anticline off the tee off the take rate over last quarter and Apache and we are seeing a few reasons behind that number one where our students the from the restructuring process and progress of occupying from our traditional E commerce.
Two two life ecommerce the on the take rate from the traditional E. Commerce, usually was I was much higher than the life ecommerce and were.
Seem that as the lobby commerce picks up a greater percentage and the total GMB in last quarter and then so that's number one we have seen that did not and commerce has lower and take rate, so which actually dragged down the on to offer our take rate.
And and secondly.
And.
Going forward.
We we we I think from that the and.
Take rate from the live E Commerce part has room to improve.
And because on the co hours actually your ferry royalties from the Bible and the offense offer has tickets and the platform as well.
And we have all the exclusivity agreement with them. So going forward. It is possible that our t., our take rate comp and potentially go up he has room for improvement.
And number three on.
If we don't look how the graph and your side, we don't look up and take reside and would just look at the cost side, we can feel that the and the cost from the the puck and cost has been decreasing over last two years.
Because the killer I was actually taking over a broader from organization.
Organization burden from the platform and they.
They are hiring a lot of people and you do all the product Eurasia and product selection and the out and hiring a lot of people to do all the quality control. So that we moko the platform doesn't need to take it doesn't need to hire as many price we used to which is evident and.
In our cost of revenue decreased by 40% and so you know our research and development sequence also by 45% and you can see light and the platform expense and the cost has come has been coming down over and asked for years.
And I should say when I say from truck and what's the second thing is that once you go find that type 2000 and.
Our net negative at home and I'd say, they should come to that significantly less accounts and woman or merchandise and tried to the breakeven is and she is good you can get better cost.
Okay and that will come and go.
No see onto opinion, one and I know that up brick and artesia Arctic.
Take a non cash and they got a backlog and actually that weekend day. You go show Josh I tell my standard to take our hockey simple, Vietnam and and they check from Macquarie perhaps.
Perhaps from very well in this quarter, we can see we did a good job on cost control and our non-GAAP net loss has now.
Should we expect that breakeven point within this year. Thank you.
Okay. Thank you Brian accounts I would just ask my question Darren So I think breakeven is very important goal for our and fall company are being 2020, and 21 physically and if anyone I think is a very important from a mouse.
Milestones, but we don't limit our financial plans because of the break even point, we actually thinking of.
And from a launch from perspective of live video broadcasting ecommerce has a from our long runway and there's a lot of things. We can do to grow this business to make the speaker. So bookkeeping is very important milestone, but what would you be able to give we don't provide a from a specific guidance and does some timing or interest of the when we can't or.
Hi.
The specific timing that we will definitely and do that.
And from a.
From a big picture perspective, you can see that the loss from operations has been has been decreasing dramatically and ER.
The Companys cash positions August I guess cash flow positions is getting increasingly healthy. So all we think our financial positions I know much better shop that much better and better shape than a year ago.
And different said, we'll keep in mind.
That we want to do we want to make sure that the breakeven is possible in the future by would junkie from specific guidance, but.
But we went out and show all the investments that we are trying to I will vary from past to capture to capture all the potential possible growth opportunities in a lot of ecommerce expense in China.
Okay. Thank you and me.
And again, if you would like to ask a question. Please press star and the number one on your telephone keypad.
Your next question comes from the line of Charlie Chan with China Renaissance Charlie Your line is open.
And how they're not and I got you.
Hey, guys I told you I wonder what your sense of what your sales I'll tell you. So.
Just a total domestic.
Two and what's what has a lot more toward that goal a total logic quite yet again and again.
Well, that's always our foreseeable really should go down for sure they are throwing out for that and shit.
For the appeal.
And how much did you get from gains on time and again for shutdowns and tickets can be felt rochelle and there's a bunch on a go back longer Tonight, you should ask pellets I guess young kids.
Got it.
Okay.
<unk>.
Sure.
So for income.
And so the question was about the incubation off of the new Coelce. So basically as we can see by the Topco housing or mobile pop are doing perfectly well, so how what the company's strategy going forward for the killing and commission.
Charlotte.
And then with our sales force, helping ensure that it is and the other a woman you anything you. All you got hit home chassis those whole sheltered water EBITDA. This year total blood and guts payouts GCG offense and the.
Only a foreigner value.
And then they will disappear Toyota you go to a genius I think and how they will fail and Charlottesville, It's just and just on that so help which will put us and though.
Fail change will slow and and that's all digital grocers I'll touch on that and looking how the ER.
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So thank you Chuck so I'm going to translate and it's a very quickly. So the question is about the killer and creation and but actually I think mobile is a powerful and asking extremely dedicated to kill and collision.
Alcohol, the fair comprehensive cheering and empowerment and trending.
System to make sure that that kill how can grow and Ken can thrive from our platform. So I'll walk Christian and team on their key K.P.I. All day are key.
Objects in their day to day.
Operation is to make sure that the killer Elk and grow and the threat from our platform they add up and say the but the majority of our gym be contributor on the mobile platform and that doesn't say will be the key growth driver for us going forward. So we don't we don't disclose.
We don't disclose specific number of how many kellogg's and should deliver more than $10 million million sales or whatever period, but we are seeing and that.
The a lot of and your basis actually popping I'll tackle resting nuclear hours upcoming farewell title and thanks to the fairest strong and Herman to of our supply chain and team and they can actually deliver a very affordable and the same time third.
Differentiating products to our customers and they can be recognized and that can be recognized and then they can also well received by our customers.
So as you can see that the double 11 was a major event.
That we dedicate our resources to our top two callouts, but going forward when it gets to the December promotion event.
We were actually replicate to our experience replicates I'll krish and know how with more mid to long tail kill routes and to make sure that they can grow and thrive haswell debt cash and somewhat so thats our goal going forward and that the key Cape yacht and of our operations team going forward.
Hi, this is yet.
There are no further audio questions I will turn the call back over to Mr. Rene bankers day for closing remarks.
Thank you and me.
Thank you everyone for joining the call today, if you have any further questions or comments. Please don't hesitate to reach out to any one of us here at more good day.
This concludes the call good night.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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