Q2 2021 MINISO Group Holding Ltd Earnings Call
Okay.
Ladies and gentlemen, thank you for standing by.
And woke up too many so group holding the holding Limited's earnings conference call for the second quarter of fiscal year 2021.
On December 31 2020.
At this time all participants are in a listen only mode.
After the managements prepared remarks, we will conduct a question and answer session.
Please note this event is being reported.
Now I'd like to hand, the conference over to your host Speaker today, Mr. Zhang Director of Investor Relations. Please go ahead of you soon.
Thank you Rocco.
Hello, everyone and thank you all for joining us.
The fifth.
The company has not called for.
For the two receptor.
Yeah.
Total interest.
First of all of them bathroom renovation retrofit.
Duffy.
Okay.
Good day, you will hear from our chairman and CEO.
Well, Doug the corporate business.
Or people business gross profit.
Strategy.
Okay.
The bulk sample.
John.
We are of a draft of appliances for itself.
Before we take your questions.
Before we continue I'd like to repurchase the Safe Harbor statement all of our press release, which also parts of it quite well.
We will be making forward looking statements.
Please also note that the building.
Now I first Magnus fish, which reacts brand of.
The correct itself.
However, the bathrooms reported on.
That's the part of the true multi sector income.
The earnings release.
Alright.
Yes.
Yeah.
With no debt.
John.
Yeah.
Right.
Okay.
The reason.
Hello, everybody.
Joining us today.
Nicole we will keep you updated on many of you saw in December of quota share.
Share with you, our Nu X and the strategy.
For meaningful we all believe the.
The Mexico operation, we call it an encouragement for from it.
While our overseas operation moving further along the path of would be covered.
You don't need the quota, we add when Henry and 84, new stores to our global store network.
Why all of the pandemic phase offline retailers globally in calendar year 2020, we edge.
The rehab.
To meet new sold during the year debt.
The trading of our partners of the confidence of our resilient.
Beating model and the <unk>.
Part of the debt average would be covered the beep.
As for our domestic operations.
We delivered a net addition of why I made that in the.
<unk> 35, new stores in China in this quarter.
The accounting for around 60% of over total net addition in calendar year 2020.
We continue to all of those opportunities across the China is the low tier cities as of.
Around the 60% of when you install of the open in this quarter are located the in the market.
As of for overseas operation.
We entered two new countries and open for <unk>.
The non new stores in this quarter of coding for 63% of net of addition in calendar year of 2020.
Despite the 153 was in the store was temporarily closed the by year end.
And the main other overseeing the soul of the Beanpole of the two reducing the our business due to the impact of COVID-19 revenue generated from overseas the operation increased by 32% sequentially.
In terms of the old the sales of recovery in.
In China, while occasion, the only case all of the COVID-19 headwinds from time to time in this quarter. We reached the overall recovery rate is about 95%.
Almost all of the low <unk> the cargo to the Henry the percentage or even a couple of growth.
All of these market the.
However, we recovered from regional to around the 60% yet with the pandemic of fluctuation several times and the heart of the social gathering inquiries the the equally over the recovery in some countries.
We saw the unstable and the our fragile recovery train all of the all of the marketing as the whole.
Pull back of why we.
We used to get to our state on one one philosophy and the.
All of our products on the spectrum.
Our lineup at the moment in the operation and the amazing trader of Hanmi.
In addition, we continue to seek the cooperation with the new patents for.
For example by cooperating with the BD, Billy we launched a series of of new product and the activities that the warmly received the by our customer.
These calibration as of late on the foundation of our highly overlay will yield the base between meaningful in the BBB.
Sorry, I was on the table to Wahoo.
Any of the gala for Chinese lunar new year enhanced our communication with the young customer and the refresh of meaningful of the brand image.
Ivy initially with the important component of all of our product of steady.
And the we remain committed to launch more products in the future.
And the young public company, maybe it's the unknown our extra strength in December.
For the illustrating our vision of what will be coming of global leading new retail platform.
They are the blocks to the opportunity to talk about the our strategy into poverty Y on Y axis strategy and the second how can we achieve our vision.
Why extra strength.
We celebrated the 10th anniversary of meaningful revenue in 2020.
Our team has accumulated of coal strength in supply chain Benjamin retail New Hall.
The allowance for the business model on the digitalization.
We realized a huge potential of <unk> manufactured in new retail we believe it is the right it depends on the support strength into the new sector.
Let me share with you in detail in the gift card why the army political.
Okay.
Luckily a division of the supply chain is of our KOL comparative advantage, we operate the way the more than six Henry the highly qualified us supply of problem, the who are able to meet the hour sofa Katy the demand.
By connecting the are all match the manufacturing of <unk> with our unique customer insights and the met the data we pioneered the <unk> eight industry along before E Commerce player.
As a part of all of our efforts to optimize the supply chain, we view the mutually beneficial relationship with them by two of Q3.
Total docs in larger volume being punctual with our payment in two of them and the gartner them towards the badge of product the EPC and the <unk> has caused the control.
Thus, creating a virtuous cycle in which our supply upon the 10 folks of the rotation and the energy totally on continuous improvement of the old product quality and the weekend enjoy the benefit of improving the quality of course.
The effective weighted.
In addition, our efficient of the supply chain system together with our ability to overall Brooklyn, the big refresh of product here Bob.
The parts of the product innovation with the healthy inventory level and the make up more comparative amount per week.
We have for all the language of the page in the supply chain into our new initiatives.
Secondly, we have accumulated for the aimed at the retail new hall from all of operational experience and the deep consumer insight.
We played strong empathize on.
For the mine every key aspect of all of adult operation using touch the knowhow to create a change of home shopping experience.
The stabilize the layout decoration lighting more of the price of the product and the friendly's thought of in our stores contribute one of them environment of the bolt on.
While the visitor.
And then we will also find the Dol easy to navigate due to our all the demise of the quota arrangement on the display.
We have with all of it so where are the most of the people that the visits of our stores are going to be in place the by the difference between us and the per.
And we believe the same will apply to our newly opened the pulp poised on.
Certainly.
The lines of business model enables us to form a win win partnership with our retail partners because of its aligned their increase on both sides on the creation of mutual benefit.
The leverage of our Este like the model, Minnesota has quickly depending on the store network across the location we've been candidates on the brand image on the consumer experience.
Having the support from our storm Harden the network meta it's easy for us to enter the auto sector of the retail industry.
Our fourth key strength lies in digitalization retail of industrial it is the close the loop of the merchandise the flow information flow and the cash flow. The key to success lies in ways. The on more of these of three flow can be way on control and the Doctor highlight.
As of the importance of the strong system for it.
Example, our supply of partner are able to access our test the CMS system to monitor real time, the sales of bigger some of it that can make a quick and effective decision in procurement and the production.
Our small dollar system enable us to Quaker consume more of profile install of behavioral pattern on the product sales the trend and the yielding arrow can bring them to customers.
Store level inventory.
In light of is this the I T.
At the vantage our system will also enable us to pay.
Our retail partner with the daily revenue will share right in China, which is extremely attractive for Palmer.
And with other coal swing our digital capability can also be language of the into our new initiatives.
To conclude on.
Our core strength creates a patent.
Flywheel effect.
The supply with the momentum of our satisfy the customer drive at the mall of apparel and the repurchase.
The momentum of our supplier.
It's the driver of our ability.
And the momentum of our satisfy the retail partner enable us to independent of our store network all of them.
The global bonds.
That is why we have been successful in meaningful in the pop.
More importantly, the Oh replicable by Alastair into other sector, but part of all of the two coffee.
Let me share with you on some of our book of the move of the extra space.
Okay.
Roughly we plan to strengthen our core many of them give me the bike pending total network not only in China, but also in royalties in the market for China. We estimate of net addition of five Henry <unk> income.
<unk> in the year 2021 in.
In particular, we see strong demand in low tier cities on the high returns for our partner compared to more mature market in the high tier cities.
We are excited about the huge potential and I believe we offer students of the wireless ready over there.
For the overseas market. We believe there is incredible long term the value of their people.
Before the outbreak of COVID-19, meso has accumulated abandoned the localized experience from team building.
From a doctor.
Our reputation clearance to market the research by entering all the.
AP countries in the area with lots of authority of the foundation, either will be easy to rip the cases of Henry the whole the news both on the achieving revenue the growth in this bucket. However.
However, we also recognize the such operation.
And of the change caused by COVID-19 in the near term.
We and the mobility of the partners had agreed that our major task should the be destocking on the reduced operational risk in the net the few called her.
At the same time, we will closely monitor the development of the pandemic.
Our store of the patient plain old coding and the dynamically.
Secondly, we plan to invest in our new growth initiatives, which.
Which we will share Basel to accelerate our progress along the path to become a global leading new retail pump platform.
Pulp poise.
Example, we observed a structural imbalance between the supply and the demand side over the toy market and the duct means a great opportunity.
Our fourth the step.
To meet the diverse demand of the younger people is to leverage our strong supply chain to provide the eight categories or products.
In the near future we will.
Plan to launch more co branded product by sharing many of those the IP library.
We will also have pulp poised on IP product development and operation.
It may take some time, but worldwide.
All in all we'd be language of many of those of coal strength to increase our offering and much of its possible, while reducing our dependence on any single category.
To date, we have opened non pulp poise bolt in five different cities in China.
Although still early we haven't seen encouraging preliminary results and the received the pulse of the feedback from our stakeholders.
So the REIT.
We also we are also focused.
Okay. The on Omi channel strategy in the.
This quarter online per account.
About 7% of all meaningful the revenue and there is plenty of room to growth in the net of few years and.
And what we plan to follow a most of the pinball rate over development of <unk>.
Our online initiatives.
The other than for the money to true up our GMB, which is our Permian practice of for E Commerce player.
All of our target is to provide the cup terminal with a more convenient accessible and the personalize the shopping experience with our Omi channel strength. It depends on all of those customers who are used to.
To shopping online.
Based on all of these the idea hopefully launched is obese or online school and the when the machine network at the very beginning we commit a goes up the climate to offline zone.
To conclude.
We are able to achieve we were able to achieve pop success because of our coal co competitive of strategy.
Those of course range has laid of solely that the foundation for our access strategy.
Which had the towards the higher demands on our operation of the ability and agility and the.
We will continue to be with the highly comparative of the team by creating opportunity for employees to grow and the develop of internally and our tech team more talent to join us.
Thank you.
Conclude the remarks on <unk>.
The year.
And as the CFO of a meaningful I will now provide the financial review for the quarter.
Yeah.
I will look on my remarks with the review over the December quarter result, and the zinc provide us some additional color regarding the March quarter. Please note that the full operating expense I will be referring to our non advertised the mirror which had.
Which have exclude <unk>.
Excluding share based compensation expense.
Revenue was true partners III bidding on B for the December quarter around the midpoint of our guidance and the represented a decline of eight.
18% of the year over year.
Income operation of <unk>.
Revenue showed a significant design of <unk>.
The proven though from the previous quarter.
On this week revenue declined by 31 per cent of the year over year.
The same trade will also reflect our revenue from overseas market in which the revenue showed a decline of 51% over the year over year as compared to a decline of over 17, 1% of the year over year in the previous quarter.
Revenue from the domestic of marquee was flat year over year.
Sequentially, our revenue increased by 11% with all of these revenue increased by 32% on the domestic of revenue.
7% the sequential increase over revenue is also due to 4% growth in Stockholm, and the 7% the growth in revenue per minute of for in this quarter.
Our ability to achieve sequential revenue growth for the demonstrated the effectiveness of our expansion strategy in low tier of Cds and the business the recovery of pool.
Domestic and overseas operation.
Gross profit was.
Fix Henry the and the whole 3 million RMB, representing a decrease of 28% year on year on the increase of 23% the quarter over quarter.
In addition, gross margin was 28 per cent in the December quarter compared to 31, one of things the percentage a year ago, and the 25 plus points of 2% a quarter ago.
That's the fluctuation in our gross margin was primarily due to the fluctuation in the revenue contribution from international operation.
Which typically has a higher gross margin than that of all of our domestic of operation.
The owner of this quarter revenue from our operation of operate overseas.
Overseeing the operations accountable 20 per cent of our total revenue as the compared to 13, 4% a year ago and the 15% of Portugal.
Selling and the distribution in Japan.
So the Henry the agnostic.
Be comparatively.
We handle the end of seven.
17 million, a year ago, and the 230, meaning a quarter ago.
The quarter over quarter of increase was primarily attributable to an increased loyalty expense.
<unk>, which was in line with the recovery over the company and the sales during the December quarter as the.
The window as the increase in marketing expense as.
As we continue to strengthen the brand recognition for meaningful and the palm oil.
G&A expense was 160 million Amit.
Generally flat year over year in the quarter over quarter.
Yeah.
All of the net loss was 55, meaning on be comparable to the net income of over 20 volt meeting on a year ago and the other net loss.
16 meeting I'm, the a quarter ago.
All of the net loss of the was mainly comprised of comprised of over 67 mean on be in net of barring the change of law.
Which was the inline with the appreciation of over renminbi against the U S dollar in December quarter.
Now turning to our profitability.
Operating profit was.
Safety Board meeting on B.
Compared to 730 me on a year ago and the operating losses over the two mainly I'm be a quarter of the year over year decrease in operating profit of one of the due for a revenue decline. He oversees the operating called the lives of the negative compact impact of COVID-19.
In the period before.
Despite of our fixed cost and the expense the remaining stable.
Nevertheless, we are well.
We are pleased with the excellence of improvement in our operating profit on a sequential basis.
Yeah.
Adjusted net profit was.
AP for me on B compared to 390, meaning M B, a year ago and the one with the on the true meaning on a quarter ago as I mentioned earlier, our adjusted net profit in December quarter included a net already the change of loss.
60 says the meaning of MB.
Excluding these on one time of in a fair over the whole range of change law.
The net profit was around the 100 and the <unk> and be in the time with Walter on the increased by 25 per cent quarter over quarter, and the weight and expand our margin level will normalize over the coming quarters as the pandemic abates.
Basic and diluted earnings from continuing operations per ADR.
What the real point of view eight RMB compared to almost 0.8.
The report on the eighth I'm being a year ago and almost all of the seven RMB a quarter ago chopped the basic and diluted earnings per ads was zero point of two eight on be compared to one point of 52, I'm be a year ago and the zero point of for.
M B a quarter ago.
Turning to our balance sheet as the over December 31, 2020, combined the patents the overcome many of the cage cash equivalent on the restricted cash was at 6.8.
Eight the billing them be comparator with three billing on B as always the Pembroke 'twenty 'twenty.
This increase was primarily due to the proceeds we received from our argue on the cash flow generated from of the operation.
10 of our inventories and the trade the receivable remained flat sequentially can see the ends of sequential recovery of the revenue and the store expansion.
The strong proof of our effective of working capital management.
Yeah.
Looking ahead into March quarter of 2021, we expect our total revenue.
Two part of the 2 billion RMB and the two point of full billing on B, which would represent an increase of <unk> 35 per.
At the end of 247% of the year over year.
As we continue to operate the time over significant uncertainty the.
But typically in regard to the severity and the duration of the COVID-19.
On the a perpetually in the context of overseas market. These the forecast only reflect our current and the preliminary.
Views on the market and the operation condition, we changed the subject to change.
Finally, I would have liked the two.
Weighted.
We even rates that we remain proud of all of our team of the candidate from the execution and the commitment to growing our BOP and the beyond the end of the service all of our customers.
For some of them in the face of uncertainty has enable us to remain on track despite of the al assets and the challenging environment.
Going forward.
Our financial strategy will be to remain disciplined in our budgeting cause of the controls and the allocation of capital as we focus on the candidates on the delivery of the Saudi the financial procurement. Moreover, we will know the become a compliment complacent and we will continue to.
<unk> strategically for future growth.
Initially it was may affect individual financial magic in short term, we firmly believe that the such ever we continue of meaningful to many of those of the table and the long term growth.
Looking ahead, we are highly confident in the strength of our underlying business model and the remaining state of Bob in our kind of maintenance to solely the buying our leadership at home and expanding our market share of abroad, and the deliberate long term with shareholder value.
This concludes our prepared remarks, the ultra day, operator, we are now ready to take the question. Thank you.
Thank you.
We will now begin the question and answer session.
I asked the question. Please press Star then one on your Touchtone phone.
If you were using the speaker phone.
I used to pick up your handset before pressing the keys.
On your question. Please press Star then the true.
Today's first question comes from Michelle Chang with Goldman Sachs. Please go ahead.
Hi, Hi, Thank you for management for taking my questions Oh sort of shot at cash a thing of English on the memory.
Yeah sure Okay.
Okay.
Yes, yes, right I have three kruszewski, our so firstly on you mentioned about the these are new on him.
Retail ex strategy and can you elaborate a little more regarding the quad category eats a lot of flat target costing them on geography.
Going to explore it in the first stage of in addition to the top toy and my second question Yeah. He's the guy in the overseas expansion itself all of that.
Are you are you would tend to be on there'll be cautious on the short term on trend. So can you give us some highlights about the guidance for the ETE again and of our athletes.
All of which aggregate debt did you see the two we'll see the big ease of relief for the overseas expansion.
And my third question is about top toy. So I think we just mentioned that we have nice for watching five feet of yourself do you have any more concrete plans for the expansion for Es and the how should we think of us as the average sales per store for this year. Thank you.
Yeah.
Hi, Michelle would you please turn to total before we answer the question. Thank you very much income.
Yeah, Yeah sure so yeah.
On it sounds on the that you kind of of how what's the against losses kind of wacky snapping the adjustment at the Santa yet on the Manhattan, Sasha tricky that shlomi shots of the woman dressing and shopping pattern. Once the Sam Yeah think of you that kind of answer.
On <unk>, Oh sneak of castle with Atmel Pal clutching done done no yeah. The once you share.
The partnership teach out one of the highlights at the time she likes mentioned the Cal also.
None of them the second I'm going to the cutting and that's the kind of expansion that you just kind of hanging on to keep on Nash I could share you touched on it until the young people got the idea not it sounds like Joe said that the top call you on the amount of two.
The dollar philosophy that you want the backend I'm not I'm not going Oh, My God for God Union I'm wondering I'm glad you got the I forgot in each of those at the height and it won't be all non-GAAP I'll push off and you have seen changes of the Bambi in the wash in guns of cell phone the jump on that I should just yet.
Yes.
Yeah.
Yeah.
I'm kind of I can tell you on she needs.
The couple of times on these are some of them on which indeed.
So you got from you kind of how much of that channel.
One of which had the bombing.
So let me talk about couple.
A couple of items on the jetson when he got from telling me that you're going to assume that you don't want it.
Yeah.
Although the or potential for comparable the parents with the group of Comanche. The job. So she was a meaningful sort of chia Patricia by a meaningful slowdown. The temporal was also a lot of a change or sort of a job.
One of the chairwoman download times of the tubular.
She worked for other than at least both of them.
This was on Egypt.
Let him go up because of the Utah dynamic of the signal.
So we talked about how do you have the season electricity of flu.
So were not material to total assets.
Ask the team Virginia interests of the pulpwood price of <unk>.
With regard to the team.
Well, maybe that the message of every took control of the.
The result of titles.
Titles on political.
And if you play of Hugo.
With that I think the move up because you mentioned on that journey of the Eagle the eagle growth either choose the repo.
I'll point to recall, what's your net.
Okay, and the Eagles share with you are going for.
The probably too soon to tell me a share of wallet share.
I'll make sure the tutors for cheap all biography of Nate let me on that.
The team was looking to get out and we've got a model of mentioned of about.
All of the long into the through all of the do you think of the PMA to draw the on she's done a lot of all of you might be cheeky I know the reporting you got sort of dose.
So I'm.
On the going with 800, which in each of them into our debt we will continue to debt.
Again on the parking that you seem to hit each of them.
Okay.
The holiday build I think on it.
Again, the chips from sort of a particular puppy meaningful schrum and check all the Florida.
On behalf of higher than banking talk about aggregate the alcohol.
On a go through the merger meaningful the different chocolate so you're talking about big telcos. The also on again noisier for particular ambition.
On the for sure.
So he has what he knew it was the top policy you book to John on children, you wait for those to double the tutors for at least for that would be your country.
As mentioned for the timely value I'm going to keep on the door heat flow through to.
The job so any sort of the top of all of the current down in each of them.
Group.
And then of course, we ensure reducer, what what kind of you've gotten.
The two out really exactly the country, but I'll give you the MTV the finalized on which allows for a woman to each of us to jewelry somewhat true.
The ocean, arguing with one of the sure.
And yesterday on the mail of sure target growth.
The charge from competing with what on the people.
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You may put place on I sort of omni channel. It sounds like you see on top so as well with me who pay for reviews of the thinking on what the Hain chartering of looping Cook Cleveland on the living room.
The change up nicely.
Cool.
Thank you.
Uh huh.
Okay hydrogel.
Thank you for question.
The rest of the restaurants offered strategy about.
Our strategy the first.
Mr Ye shower for.
The acts.
A couple of times.
Our book.
Nature of their strategy and they all go for more initiatives one of them.
But at this moment cut part of it.
And we all of them.
Hum.
So it's true.
Our second quarter profit.
Okay.
On the shelf.
During part of the seven to eight years.
Average.
For the strength.
The strength.
The balance Institute, a global not just in the retail.
Hi.
As we mentioned.
The power market.
Yeah.
<unk> expense.
All of them.
Uh huh.
Supply chain management, and the retail no call and all of this is being.
Digital coupled with the.
Our asset light business model all of it.
Cost of strength, that's where you kind of balance.
All of future success.
Strength in the future.
For the deal.
Now on for Scott.
Yeah.
Oh.
No.
Okay.
Separate from greenhouse.
I think over in Europe.
So we can understand the problem.
Absolutely all for it.
From a credit risk.
We should have inclusive of the sculpture category.
And of course, we think is very important.
The potential.
In terms of our pricing strategy for the part it's much.
Much higher.
Absolutely.
Not even the average ticket.
So.
The average thoughtful from the car.
About two five.
The times.
Or even higher to 10 times.
In terms of.
Absolutely.
Jeremy on the generation fleet.
Because they can half of the stock.
So from a strong.
Right.
Super.
The market in terms of the truck rack.
In the first of the Euro zone.
Of your outlook for Costar.
For your body.
Yeah.
Nope.
The moment.
Listen the Walker.
We got an upgrade of Patrick losses.
But whatever.
Couple of hard has adopted.
Omni channel presence.
So.
On.
Our balance.
Half of our customers.
They are enjoying.
The pocket of spirit.
Through all of them.
The channel such as non White house.
Okay.
Okay trader and you got to get all of that.
Well the railways for sure you're taking the interesting question.
The more countries you manage your computer.
Some of it I hope you have a change of rollout kind of Youtube.
Okay.
That's all highlight of the total lateral on the Egencia team 10.
$10 during COVID-19.
Local geography.
Archie if you can teach on the face on the bottom group.
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Come on coaching Little league of Charlotte.
What kind of do what you're trying to get your sort of what you ought to.
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The chapter of each new yet on the T shirt for local government type of outcome.
For sure.
But the ability of audio for which I know you can put them on the execution of repeated.
Sure.
And the role to call there'll be some of the other jewelry for quantity of the controller.
For example.
What are true of consult of Cook with volume on some of it yet.
Yeah.
But on your COVID-19 future debt.
The <unk> are you kind of in the ear of teachers or does that change your book.
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R E G. The cutting the year do you want the article.
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The volumes of the outsourcing of our yogurt. She was the daughter of beach on the tougher by Alex on edge of that those are the beach all of that data the ultimate Angela by having the kind of order.
Total will not hold on to them a higher culture fit on chunky on the Indian rock type of LNG shook out with your ranking of the machine.
Yeah, Patrick to Anthony the drink a function of operating metrics here shortly.
But on the hydrogen that you more generally the eaten up on the elements one day, but.
The bulk of the Jetblue called me of what they really do.
In yellow on the Ohio, and the theme for the Kingdom not true junk Ebola on by that oil.
The provision of a true you on iPhone.
Good morning, the trick and the name of the tree was due to undo some of it helps you realized price I know you made the Chi the Wechat, Bob you know Omega Sheila.
I think the meaningful beginning in the which for new household on the minority of element to that trend or do you get out of the jump in with some of that.
Now what kind of annual growth.
The Colorado for people to work.
On the antibiotics in guar.
The overall with some of that.
Youre chief of Lidar, Yeah that was the most of the Taco had the with water and yesterday the overnight.
As you commercialize the optimally you kind of shouldn't the alpha or people.
People, who have made all of that cash or flat.
That's actually good value from it.
Okay.
Okay.
In terms of the second questions off of our broad spectrum strategy.
No.
It has been a growing force.
Part of the separate market.
It seems that the China business.
On the reception going on.
Right.
The.
The specialists.
Part of the holiday season.
The tempur.
The gathering assets.
True.
Net income.
Copies of offer or the smart home.
On the table at the front door.
Hum.
Okay.
From the perspective of.
Our debt Theyre almost all the problems with the answer.
The net.
The hours of sports.
Opening of stores.
On <unk>.
Great.
Thank you for consumers.
We think that the damage.
You're always on hard to tell.
The Africa cause the advocates.
Okay.
Part of the month.
The Connecticut.
Authors cohort.
More of a readout.
Okay got it.
True.
Uh huh.
Reduced operating risks.
The socket.
Okay.
Okay.
Uh huh.
At the same time.
We are confident.
Most of that.
Inspection of future of the comps.
You mentioned a couple of different countries.
The.
Offline Pinterest.
About 19 stores this year.
Yeah.
Awesome.
So.
Great.
At this moment recent incorrectly.
Uh huh.
True.
Thank you.
Okay.
Do you want.
That is the.
It's about the Hawk of Bolivar.
Everybody for that.
Sure.
The country's rehab business.
To give you some color on that for.
The number of the 17th in New York.
The circuit.
About 50.
The Americas, including from almost one aircraft off of.
The Doctor.
For a reconciliation of countries.
Uh huh.
The countries.
Yeah.
So it includes the charges.
The first of all.
All right.
How far the T sand moving.
So I'm kind of out what are you with all of them easier for you Jay when you look at on the ice and when this isn't the sort of conditions for everyone.
Some of the legal costs.
Well I mentioned that the regulatory who put on job.
Several of them until the end of the old on something that would be all of them that we're taking.
The change of pool of career neighbourhood of share buyback of shares that you buy you bought what was your question.
Question for you.
Currently outside of life.
Oh man he schedule of the synergies with.
A couple of quarters for throughput.
I think we're quite looking into the southern book on the topic of since you haven't been a lot.
All of a bunch of accumulation of quanta tricky on pull out of home, which elements of it with Rollouts of the 10-Q two of our.
So, yes, regardless of the synergy associated with the input.
At the amplitude of all of that even with each of the hardwood pulp motion.
Jerry will measure of still aren't that the energy we have them yet although the feet on the most.
The number of customer for true.
You May go on highway each on the or the immediate on iOS. When you go deep on overall material to be sure the sofa.
Got it understood Amit and each of them.
Many of the turmoil.
The two of them in the day with Pizza hut.
Ashish.
Yes.
So you don't want to talk a lot.
For the fourth.
One of them one of the issue for us.
That says that the take a moment, what's in the gist of it and I don't think needs to go.
I was watching the popcorn.
Yeah.
Yeah.
For.
For your third question for you.
The third of questions about the.
Expansion plan.
The toy has really shallow totally out of.
Our total debt.
Okay.
This commitment.
The average.
Yes.
At this moment with the Manhattan.
Okay.
Sure.
I think in your back book.
Okay. Thank you.
Thank you.
The next question comes from Lucy you with Bank of America.
Okay.
On top of any kind of my house.
Let's see what's your view on that once you get the telephony guy it's the downloads I E. The French you should come out from what how did you get the sort of a lot of whats Oswald I'll get into the range.
To put urology the resi on me I wanted to hop on.
So that's how much of the quality of membership wait for the two summer could it be the links.
Do you all know hows, it going from will Cuddy of Japan rates of churn.
She shops all of them.
The J C without shortage of the shop on the and I kind of walk quite high do you think the battle.
The woman that says Oh, My God I, just like all of my sense of what that just to sort of get to how you see that some of our while our union budget. It for now.
I guess, you can't you're telling me of Ciena.
It sounds like the wage I wanted to catch it right yeah, yeah, some of them, but that got taken on some partial floor downhole. The you're trying another good chunk of your mass market.
Could you the allergy.
So the question is first of all on the Gen V recovery for in January for China, and the all the seats has been partially impacted by Covid.
COVID-19 as you just explained.
So how has the things being developed in February so far.
Second question is on does the opening so for China parts for expansion has been ahead of the expectation, especially in the second half of last year.
So for two of its all of them on 'twenty, one cutting the year, we our guidance for over 500, new stores. So in January and February of how much how many still has the opening so far and no.
We revised our full year guidance.
You.
The decision of let's say.
The Eagle.
Yeah.
What Congress area of your movement your share of the shot because he showed the on those routes and so on you have the RV open under the from home as well.
However, due to the two.
The paper that you want of should be two of her charlotte's on the legal called entry on autonomy day.
As of Uhm GTE sort of how are they each of whom you are going on.
So just where do you go from cliffs will do the total net ropes and in fact, I see all of that and I spoke about them being sort of.
Sorry on the requirement.
Can you just on the trends of what I'm kind of out of her.
Sure. So we don't lose the answers.
Yeah.
And that all of those either arm Johan mentioned on which I'm not sure what's going on here.
As of late Cookie, New dollar should go back on again.
What kind of the original thought was to assure the woman June kind of pause.
Could you do the ship all of them, but we're kind of on sugar of COVID-19 of the feet on language, which is a political how you do your share of the overall.
Some of them with some of it on that.
Just how much of the woman the always on a bunch of linear on the whole entry into the country.
Okay.
Right.
Okay.
Yeah.
Okay. Thank you for question.
If you cannot hear me.
The other you can't do it.
Yeah.
A portion of time okay.
All of the business recovering.
I think the.
The quarter, we have to think we have altered.
Where's the recoveries debt separate on water.
The shell for indices.
Zimbra quarter for their income.
Operating region.
With the bottoms from breakeven.
Definitely for Christa.
Okay.
Entering 2020.
Yeah.
One of them.
As we mentioned of you do.
Instead of Richard gathering.
For example.
With the medicine.
Great.
60%.
At the range.
Great.
We thank them for one.
[noise] tricky for the cargo and the Oh boy named cut in share that woman named the AMA review of.
The trial is unclear to the kill them the children for travel entertainment.
Jean Michel on the cardiac or any of the cardiac huh.
That's the one area, where I know one of my garage awake surgery challenge or true wasn't really coordination going on with that guy at the end zone.
The guidance for you it wont matter in a way of people that yeah. The answers on the constitute young golar most of the control of them for some more commentary on Weibo.
And then the question wasn't really something that all of them.
Uh huh.
Yeah.
[noise].
For your second questions about the store expansion plan and.
Generally we are.
We have maintained on previous guidance to open.
100, new stores in China this year.
As the retail considerably.
Sure in the prepared remarks.
We passed all of the citizens.
At the recent.
Okay.
The.
After that.
The problem.
Customers.
For assistance.
The strength.
Thank you.
Oh.
It's all kind of hit just yet.
Thank you. Our next question today comes from one one of the song once the ICC.
Please go ahead.
All right.
How should one of the most.
Oh come on quite well.
Sure.
On your top client.
Correct.
Well why don't you got to go on.
Central thing all of them.
Hopefully Oh, my God willing in the usual.
The one shop.
Why are you on where and Xiaomi on of course.
So for me telling the world.
Hum.
Well it sounds of your management of not just one question on this week.
The question.
I hope you and all of that how much.
All of our marketing expense amount of tough times.
And how are you.
Next question.
From Neil mentioned of you know.
All kinds of Ottawa.
South of Terrace talks.
Could you give me some color on on this tool.
Okay.
Yes.
Yes.
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So the neighbor of Calpine true here, so you're going to the tune of the shovel the chairwoman Tom Kennedy. The so the sort of go on the mobile so for the time you the Sudan singer.
Ginger will come in two of them in the J&J Chinese commerce users to dwell on that too.
The senior people that choose to be honest as the.
The takeaway.
Excuse me of hydro.
Bianca.
T element just on a couple of call it the Danielle MTO pop in the ocular.
Kind of the overall btu, but each of them produce shall I repeat the two big ones.
She's always put on commodity Algonquin.
Such a range on that.
Can we talk on France.
On top.
Non I was wondering on jewelry or use of dollar Eagle partners without whom the tenure might do with the final.
Part of your pictures all the time.
You called out on the lupus issue can do them to reopen the finance strategic from kind of like some of that's held up okay.
There are natural share.
Sure.
From a dominant neutral language is at a point a little bit on you cannot choose the schedule on because of all the color there.
Some of this issue and surety of women evolution that is on the day.
On the I repeat on the truth of the feet on the cleanup and the Jewish Richard at the challenge of extra.
Excellent. Thank Hugo on the choosers royalties of children sort of the top point.
And then jumped up a bunch of questions you'll come to the table.
So you can sort of come on.
So all of the inkjet, which resulted from collateral.
Due to the local and leverage of what's used for Chile.
Both of them the Oakland.
Controls retail all of them.
The truth your path because it.
On the numbers.
Sure.
Okay.
Thank you very much book reps.
Well first question.
The toilet.
Expense part of it.
No.
Our parking for top toys to capture of the generation for the mindshare at the top so.
We think that that sort of to spend some marketing dollars.
E contemplate.
Back to expenses now that debt.
It's a bit on Crimson.
The marketing dollars.
Sure.
That's helpful.
Because of budget.
At the departments are balance operation.
Participation.
For the patient.
So on.
This does not.
The.
The.
The project will be adjusted guidance.
Great.
It's on the tobacco.
Okay.
For the second question so powerful.
On net stores a net.
Nothing of that.
The purpose.
Yeah.
For the part that's the prevention Brooklyn, what we used to do.
A couple of things.
Omni channel strategy.
So for them.
Okay.
And from there.
Think of them.
Okay.
Copies of the hotel.
Thank you, ladies and gentlemen, it appears the way of a loss of our speak for collection for spring.
I'm Gonna place music on the call without some sort of please standby.
Okay.
[music].
Yes.
Sure.
[music].
Yeah.
[music].
Hello, everyone. This is the operator, thank you for holding on.
Your line back to the conference and once again, ladies and gentlemen of the stars on why don't you have a question.
I'm showing no questions at the size I'll like to turn the conference back over to the management team for any final remarks.
Okay. Thank you very much for two or not but the.
The next quarter.
Thank you Sir This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Okay.
Yeah.