Q4 2020 Huize Holding Ltd Earnings Call
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Ladies and gentlemen, todays conference call is due to begin shortly until such time. Your line will remain on music hold please continue to standby. We thank you for your patients. Once again today's conference call is due to begin shortly until such time. Your line will remain on music hold please.
Continue to standby, we thank you for your patience.
[music].
Ladies and gentlemen, thank you for standing by and welcome to <unk>, holding Limited's fourth quarter and full year 2020 earnings conference call. At this time all participants are in a listen only mode. After a day managements prepared remarks, we will have a question and answer session. Today's conference call is being.
Recorded and a webcast replay will be available. Please visit <unk> IR website at IR Dot dot com under the events and webcast section now I'd like to hand, the conference over to your speaker host today Ms. Harriet two waves as Investor Relations Director. Please go ahead how are you.
Thank you operator, Hello, everyone and welcome to our earnings conference call for the fourth quarter on for you of 'twenty 'twenty, our financial and operating results were released earlier today and are currently available on both our IR website and on.
Newswire.
Before we continue I would like to refer you to our safe Harbor statement in our earnings press release, which also applies to this call I said, we will be making forward looking statements based also now.
Non-GAAP measure, it's a day, which are more thoroughly than in our earnings release and filings with the a C. C. Joining us today are founder and CEO Mr. <unk> Ma.
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Mr. MA will start the call by providing an answer for you of the company's performance and operational highlights for the fourth quarter of 2020.
Tim will then provide details on net financial result for the period before we open up the call for questions.
I will now turn the call over to Mr. Ma.
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Hello, everyone and thank you all for joining with US fourth quarter and full year 'twenty 'twenty earnings conference call on.
Sunday 20, Mark an important milestone for Quaker we officially listed on NASDAQ, Despite a challenging capital market conditions.
True to our views on one of the pioneers in China's online insurance analyst day in February the pandemic was at its worst in China and he was not an easy task for us to complete our IPO.
Therefore, I'd like to express my gratitude to all shareholders and investors for you our support and trust.
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I'll start on the macro condition on the here, we do live for robust for yourself due to our years of experience in the insurance industry. The competitive advantages of our online platform business model unique focus on long term insurance product that seems to lose yet and there are leading day just talk.
Development capabilities.
The year hold on DWP facilitated on our platform increased by 50% year over year to RMB 3 billion. While total operating revenue increased by 22 eight per cent year over year to RMB 122 billion.
Particularly in the fourth quarter, we capitalized on the recovery trend in the industry on the overall economy with both total G. W. P. On total operating revenue increasing by more than 50% year over year, you reached new quarterly highs.
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Pursue the long term development of news or value in place off short term traffic monetization.
Alright, differentiate long term insurance product strategy enhanced our resilience during the market downturn and generate sustainable growth momentum in.
In 2020 long term life on health of T. W. P accounted for $93 four per cent of total GDP, increasing from $87 four per cent in 2019. Meanwhile, DWP for long term on health insurance increased by 56% year over year.
RMB 2.1 for billions of.
For the past three consecutive quarters.
Tenancy ratios for a long time life on health insurance and a 13th and 25th months has remained above 94%. We believe the waitlist capabilities in online acquisition of high quality clients as well as its highest line retention are both economic moat, which is difficult.
But for our competitors to replicate.
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In terms of product innovation.
These are massive and multi channel national user data and insurance transaction data with being able to design more valuable and customized insurance products for our clients with deep understanding of their insurance needs.
For example, we launched the Darwin for week critical illness insurance.
It was yet another success off our original Darwin product line.
Also took the lead in the customization of our new product launch our first online versions of join life annuity, which was also a unique feature on innovation in China online insurance market in 'twenty 'twenty, either repeat for co developed insurance product with our insurer partners.
Hold on RMB, one 9 billion and accounted for 42, 7% of total sheet. Other P. Compares with 33 36, 3% in 2019.
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Regarding our clients are cool.
Hence our user centric walker's constantly improving our platform functions and services to optimize the user experience.
'twenty for the further upgrade to its client service that system from Fannie and automatic corridor with human assistance and increase in service dates by up to five times moving the ear the number off Glen Casey associated pathway to increase by 22% year over year or two.
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71% year over year to RMB 242 minutes after the pandemic accelerating online insurance consumption.
Differentiated services and market reputation, enabling us to continue attracting and converting new users.
The end of 'twenty 'twenty, the number of Cui does accumulated insurance clients.
Increased to 6.85 million.
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Moving from technologies without debt.
Embedded AI algorithms data intelligence and machine learning into our key business processes.
We accumulated data from transaction extract knowledge from this data and apply the knowledge to our survey in order to achieve win win in terms of cost reduction and efficiency improvement.
For example on the front end, we launched a proposal application in in 2020. This application come quickly process user interest and recommend optimal insurance process.
It's not only for the efficiency and prospective pay off for consultants, but also improve our client experience.
On the middle and Quaker from New consultant Workstation has me on officially put into use it provides analytical tools such as user portrayed on user preference for empower our consultant.
Meanwhile, the sunscreen explanation function also provides clients with our immersive and interactive experience on.
On the back end are intelligent inspection system can transcribe calculate an annualized margin channel voice and text inflammation for improve the efficiency of our compliance personnel and reduced operating and compliance risk.
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Our operational and financial growth or industry volume positioning also continues to be on vaccination.
On the ear or on research Inc.
Released a list of top 10, China digital insurance agencies in 2020 with weights are placing among the first tier level of companies in terms of innovation capabilities and market performance over the past two years at the same time, we do what's included in K P. M. G 20.
'twenty, China, leading Fintech top 50 list as a result of our 2000 and insurance technology. This was also the fourth consecutive year that we've seen short leases.
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Gotcha achievements are the driving force behind our ongoing involvement on assessment. Looking ahead, we are confident in the prospects of the online insurance industry in China, and we aim to further establish pointer I still go to see just how insurance service platform for new generation consumer.
Empowered by data and technology.
In order to achieve this goal our team will focus on the following as theft in 2020 one.
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First we love for it embraces digitalization continuously strengthened our technology research and development I saw on talent acquisition, and hence why the core competency of us.
Same time, we will optimize our corporate culture and governance structure to ensure it further adapt patients to the ongoing digital transformation.
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Second we look for mode, a comprehensive debt hey, Jake upgrades by expanding our offline business in core cities, such as Shanghai, and Shenzhen by studying up high value client service center to further optimize the service the service experience and Mike Smith, Vice lifetime value.
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We will strengthen our collaboration with upstream and downstream partners, along the industry value chain to enrich our product offering and improve service capabilities, we expect laser to become a more open platform with a full range of products and services and its ecosystem.
Related to insurance, including medical and health care.
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We will take full advantage of the capital market actively identify high quality investment targets and improve our platform's value proposition and market positioning through mergers and acquisitions to further realize our development strategy.
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Concludes my prepared remarks for today I will now turn the call over to our CFO Mr. Ron on him. He will provide an overview of our key financial highlights for the quarter.
Yeah.
Thank you Mr mined areas and Hello, everyone. It's Ron here.
In summary, we are very excited to reported yet another strong set of results for the fourth quarter.
In which we have delivered record quarterly numbers again, but both total that you're dumping facilitated on our platform.
Total operating revenues, which has been in our previous guidance given to the market.
For the first time on a single quarter, we managed to facilitate over 1 billion RMB in first year renewal premiums.
Funding strong topline performance continues to reflect.
Importantly, the underlying recovery trend in Chinese insurance industry, following a containment of COVID-19 in the country.
As far as the increasing adoption of online purchases of insurance products are key target customers.
Which is represented by a new generation of young affluent consumers from the high achieved cities in China.
From a product perspective, our key focus in critical illness products, particularly co developed products without ensure partners continue to drive a large part of the <unk> growth in the long term health segments of the business.
With total GDP contribution of 589 million RMB in the quarter, which is up 61% year over year.
The mob earlier mentioned earlier.
Earlier in his prepared remarks, which we co developed together with facilitated life insurance was the best selling critical illness products during the quarter.
And we continue to see strong momentum being carried into the new year for Q1 of 2021.
Net of the transition to the new critical illness definition regime for the overall industry.
In addition to critical illness, we have also successfully ramped up distribution.
Savings insurance products, including annuities as far as whole life insurance during the quarter.
Which amounted to a first year Chi WP of 228 million RMB during the quarter.
As we capitalize on a seasonally strong market demand for savings insurance products during the year and pre Chinese new year period.
Our efforts in broadening our product portfolio also reflects our continuing focus and providing our customers with additional products along the life cycles, which in turn helps create for their engagement about users and obviously drive higher customer lifetime value for the platform.
Yeah.
Overall total GW facilitated during the quarter totaled RMB 1 billion of which $613 million was supposed to be your premiums, which is up 40% year over year and for an in place we put $5 million on renewal premiums, which is up one one times year over year.
Yeah, well, that's a highlight the continued strong renewal metrics, which again demonstrates the high quality clients.
Platform is able to acquire through our multi channel marketing strategies and we continue to see very able bus persistency is during the quarter. We are starting the 25th month persistency ratio is being maintained at about 94%.
Now turning to our revenue line.
Operating revenues for Q4 was RMB $388 1 million again, a record quarterly high which was up by 53% year over year and outperformed our guidance previously given to the market in our Q3 results.
The increase in revenue was primarily driven by the increase in brokerage income.
For the 63% increase in total GW facilitated in the quarter.
Cost of revenue for Q4 increased to 291 from 2 million pardon.
Primarily due to increased service fees paid to our user traffic channel partners.
Selling expenses for the quarter increased by 57% year over year to $71 5 million RMB, which was primarily attributable to an increase in advertising and marketing spend in the quarter, which increased by 43% year over year and here you can see that we proactively increased marketing spend during the quarter.
To capitalize on our significant market demand for critical illness products in the period.
G&A expenses for the quarter increased by eight 1% year over year to $37 3 billion RMB.
This increase was primarily attributable to the increase in G&A salaries and professional service expenses and offset by a decrease in share based compensation expenses.
R&D expenses for the quarter grew by 33, 9% year over year to RMB $58 million as we continued investing in AI applications for our platform and increasing R&D in data analytics head counts.
During the fourth quarter, we have recorded a GAAP net loss of RMB $27 million.
We continue to maintain robust liquidity, a strong financial position and Thats a quarter and we had a combined balance of cash on cash equivalents for approximately $62 million.
Now with regards to our outlook for the first quarter per year as we've touched briefly upon earlier, we've invested quite heavily in marketing spend in the last quarter and we have also undertaken incentive campaigns with our channel partners in a bit to capture a disproportionate market share doing Q4 in light of the significant market demand for the.
Oh definition critical illness products.
And we are now seeing for strong demand building over in the first quarter of the new year.
And as a result, we are now on track to achieve yet another record quarter for total operating revenues.
As for our formal Q1 guidance for revenue. We currently expect total operating revenues for Q1 to be in the range of 650 to 700, RMB 1 billion.
What we said that the low end over one six times growth year over year.
This forecast reflects the company's current and preliminary views on the market and operational conditions, which are obviously subject to change caused by various uncertainties, including those related to the ongoing COVID-19 pandemic.
With that this concludes our prepared remarks for today and we'll now open up the call to Q&A.
Thank you operator.
Ladies and gentlemen, we will now begin.
The question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for it needs to be and now if you wish to cancel your request. Please press the pound or housekeeping.
When asking a question. Please state your question in Chinese first then immediately repeat your question in English for the convenience of everyone in the call.
Once again, its star and the number one on your telephone keypad.
Yeah.
Your first question comes from the line of Michelle MA of Citigroup. Please ask your question.
And then you go on.
Oh wishes, if you the insurance physician Michelle.
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No we cannot find anybody thought would've wasn't too bad for sure. My first question was about to.
The new critical illness product under the new definition of critical.
Illnesses and Oh, how's the prices of new products compared to the older version as it's still very competitive and know hows, the oh for ourselves in February and.
And then the second question is about to some new regulations.
Which will be in.
Implemented a day.
See you on the next year.
On on so that's for February for the May end up for US The January next year.
What are the biggest challenges a management fee.
To be comply with these new regulations. Thank you.
Okay.
Hi, Thank you Michele it's Ron here, let me take the questions for the team for.
The first question regarding the new critical illness product I think it's too.
Early to say given debt, we have just launched a new dollar number five literally today.
Results for steel.
To be seen but we believe that the new products, obviously, we would like to say that different.
That is another iteration of that product.
At this time would be on working with Sina pay life insurance, we believe that the new products should be able to drive sales you probably in the second half of this year.
For any new product will be coming online.
Require a period of marketing and education for the insurance claims at launch through our direct channels and also to all of you know to be marketing channels. So I think it's still very early days to tell but we are.
Obviously, the covenant definitely the new.
On the new definition product would also be very well received from the market.
No.
The strong numbers that we have prevailed for Q1 is mainly coming from the old definition product, which we are early in the prepared remarks, we commented that the spillover demand coming from Q4 into Q1.
Especially given the the the debt.
Deadline of January 31st of all both of the products in the market, we see significant demand in debt a month of January.
Yes. It is the first question.
And the second question regarding regulatory changes I would say debt given where we are in the industry as one of the leading operators we are in.
Constant dialogue with the regulators and in actual fact, we are one of the consultative members on on the part of the relevant.
Regulatory bodies in terms of coming up the dropping of the ramp and policies for the new regulatory measures and so to that effect I think that we are already anticipating such changes and I think most of the regulatory.
Changes focused on making sure that the sales process of insurance brought on studying the compliant way and for example that non declined at all conversations on all our interactions with customers could be tracked.
And to be provided on them.
On to declines on as required basis, and so that your thought.
I'm proud to say that we have already.
Online a system that would be able to achieve this.
This requirement for that.
Client requests for any record of conversations they have it for consultants.
For the other point on the regulatory changes for example.
On now.
Requesting or setting some certain requirements for insurance companies itself to meet in order that they can provide insurance products online for example for solvency ratios requirements.
Credit rating requirements for four consecutive quarters and these requirements or these new measures will come into effect in the new year next year and I think that the regulators are keeping.
Given adequate time for the industry participants both on the insurance company side as well as TD insurance brokerages like ourselves to adapt to the new changes and for insurance companies I think that they wouldn't be very likely to undertake.
Matches to strength the capital basis shrink the balance sheet in advance for these new measures to come into effect. So overall I think that the industry is coping with the changes and I think guy is one of the leading players in the market, we are very well positioned to to to manage these changes.
I think that's the question that you answered the second question.
Okay. Thank you.
Okay.
Your next question comes from the line of jewelry young of CLSA. Please ask your question.
Oh, Hi, Thank you Howard.
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On eat out just the easy one is home with just a quick hopefully looking so on so on my first question is about the products. So we understood how to adopt Darwin number five officially launched for today and we also and they're still debt I'll wait till he says no per platform that sell sell sell for products that are not cast or myself.
So could management help us understand the difference between the two kinds of products, which one could also has a better profit margin and Don is there a preference speech on the two types of products.
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So my second question is about the take rate in full kill we noticed that there was a slight decrease in our full Q comparable with previous call source and at the same time, we also see that the those trucks for off the premium first year premium actually accounted for 60% of the focus for them.
Liam.
So I was wondering what's the driver of the decreasing our take rate and full Q is it because of selling off from all short term insurance products.
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And my last question is related to the offline on services centers asked Mr. Matt has mentioned.
I would like to ask about the latest progress of this offline services development and also about Oh, what's the selling points are.
Our reopened to attract the talent.
The talents for E two ever all flight services centers.
For the cycle and she said why don't you tell him.
Hey, just as always thank you Joey thanks for following us and for your for <unk>.
Questions.
Why don't I take that.
Questions on behalf of the team again. So the first question is really about the product mix of DWP.
DWP and whether we have any preference.
Towards custom.
Customers are co developed products versus the standard product that we can take off the shelf like other brokers I think the clear answer here is that first of all I think that we always come from the customer's perspective.
<unk>, which for.
It is the best simple product for their circumstances and I think typically when you.
Users come to our platform being attracted by the day.
They could pay for money critical illness product that we on co developing with insurance company partners and therefore the answer to this question that's really would be that we have a slight preference towards.
The customized low quality of our products that we manufacture with like cement and the lactose.
Closing net of health because oftentimes these products represent the best value for money products currently available at any given point in time in the marketplace.
And so naturally no customers would prefer to enquire about these products and I think from our perspective.
Corporate.
We do prefer.
Did up on us given debt, if you're able to cultivate and deepen our relationships with our upstream insurance partners.
Deeply engaged with them with that and therefore lead to better.
Uh Huh Columbia arrangements, while it's down the road for example, Darwin number five is the second time that we've worked with Sina pay and therefore.
We will be looking to see better treatment.
On the insurance company partners and I think also the way that we can demonstrate to the overall industry is too high persistency is we'll give a lot of comfort to ensure our partners to partner up with us.
Future versions of the products and so therefore, I think that's the ore body as for the first question.
And the second question regarding the take rate I think the explanation to this is really the particular.
Mix as it pertains to first year premiums in the fourth quarter I think in the fourth quarter, we have done.
1% of our first premium in.
In annuities and gross additionally, achieved 16% above plus your premiums in whole life insurance. This is entirely new product segment that we have entered in the fourth quarter and so combined that is 37% of the first year premiums in the quarter and typically as I think the market and investors have come to understand annuities typically carries a lower commit.
<unk> rate for the first year premium compared to life critical illness on long term life and.
Therefore, it is really the product mix being a bit slanted towards annuities in the fourth quarter and.
In the fourth quarter and the pre Chinese new year period in the industry day as the cycle time on home, which is a phenomenon in China in both insurance companies push savings related insurance products during the time and therefore as a brokerage company in our core we're naturally also aligned with the market department that respect and therefore.
There is a higher contribution from from annuity from savings related products in the fourth quarter, leading to a slightly lower overall take rate. So it's a product mix factor coming into play.
So for the third question regarding the plans for going offline I think.
I I can make a few remarks here and maybe the team for light due to add on to this I think the plan for US is to really rollout in offline presence in this new year last year, we mentioned about this but then due to COVID-19, we were pulling back the plants, but just give me on how we are seeing strong momentum for the last two quarters going into the new year I think we have read lots from will come.
Evident in pushing this initiative and then a few factors on eye to point out here. One is that the offline presence will enable us to have better interaction and better engagement with our existing user base.
We have $6 8 million users right now and obviously, we have a proprietary in house data to these users and we can just.
<unk>.
Achieved the top 10% office user base and ranking those in terms of all of our data. We can really have a list of our high value customers to approach and with this offline service centers, we are able to reach out to these customers in in the first phase I think we were very focused on the first tier cities and for the first space on the initial.
I think we're looking at Shanghai, and Shenzhen, and probably hiring left on 100 people.
Two two.
Really spearhead this new initiative.
And I think for for the hiring side of things we are looking to attract.
Professional talent from the marketplace and I think the value proposition that per user can provide for this this consultants would be that one they can leverage on our online business leads to b to b to b relative to the debt.
We spent offline centers in debt will they can use these lease on.
Mickey for at least two to capture new customers and also where they can leverage on our internal use of databases, which I just mentioned earlier to cultivate.
Repeat purchases.
Our increasing lifetime values for the platform and so we're expecting these new consultants to be delivering higher value products to our customers and the more differentiated services as well.
Sure. So thank you Mr would have very clear.
Thanks Joyce.
Yeah.
Your next question comes from the line of Brian Lee of a M. TD group. Please ask your question.
Uh huh.
Gotcha, Okay was that he went on to your horse MTT low to the TMT for you should buy it.
Yeah, Yeah to her answer that you thought you got a true said Oh, what do we have a gentleman going to tie what kind of I'll say.
Accounts payable.
Danielle <unk> <unk> you go.
E, which outweighed Shah.
If you take also the day the G HN, even though you gotta be Joe Holliday on T cells. So it was that range chip.
I thought you said familiar hanging on.
Okay now for Asia.
I have noticed that you.
You're just at 100 million on the accounts payable.
On your balance sheets.
Could you please give more color on this item.
Sure. Thanks, Brian.
And thanks for joining the call today I think the simple answer to this is the strong month of December debt.
We have experiences business and therefore, I love the <unk> the <unk>.
<unk> has generated a cash.
On payables.
Yeah, Yeah. So it really has to do with the strong month of December from a business perspective.
Yeah.
Oh shit.
Hey, Rob.
Your next question comes from the line of January on what type of Securities. Please ask your question.
Okay got it on in Washington on hydrogen.
The jets.
We moved out of India.
Junior.
Hey, good observation channel, that's all going towards that you've touched on the hoping coal ash on punchy each day.
On the charges more than being on mobile should not share.
So my first question is about it on Monday mentioned by Mr. Maher.
Now.
This year.
Let's come to your company are going to acquire one more M&A deals and my question about what's the potential targets would be.
Moving to self isolate using the.
The share in Charlotte is a food long debt for 20 years.
<unk> is a wrong on it.
Cash on Asia.
Since we have seen couple of Wuxi channel Chamberlain inelegant, so you're seeing China for us.
Cool.
Yes. So on the second question is still about the offline semi center.
What are the main function of Doe's offered on the service center. So thank you.
Yeah.
Okay.
Thank you it's Ron here, maybe ill take the first question and maybe for a second question.
On a model for the download click rate Uh huh.
Okay. So the first question about the M&A targets I think we are prioritizing our.
Investment targets I think in three major brackets.
The first range of Brexit would be possibly some of the existing channel partners that we're working with for.
For the past few years I think some of those could be interesting collaborations.
Flow perspective for us to better integrate into into these distribution marketing channels. So that's one area. The second area is.
A similar online or even offline brokerages this will be very synergistic to our core business.
For online brokerage would be a horizontal expansion for us.
And then took on some better market share.
For offline will be complementary.
No.
Come inventory business strategy on that business. So that we can accelerate the achievement of an online to offline.
You know our business model. So I think those those two could be the key focus for us.
And the third area could be our other insured tech platforms platforms.
Innovative technologies in the business processes.
For the front end.
From a customer service or the middle to back end, where they have.
Very strong technologies in terms of customer service and on my support and also underwriting and claims deposits and so forth. So I think this will be the major M&A target areas for us to look for us to be looking at.
Yeah.
Oh, well that with others as well.
Thiago in heat.
They change out there to.
So we see them up on it tells me and tell me I want to share the tick up on.
Part of what is on this whole message on usually when we calculate the Tianjin that did hall who's on how that cause I see the home loans.
And then Google call each other.
No concerns with that and I'm glad you could argue on cool yeah.
Okay, so on and they'll do about nobody, though I am calling me and I'll hop on.
What did you say you don't want them yet.
Did you Paul Cheng Cheng either called jobs are they going for.
Let me see if you're a woman that could you tell me on that.
We used to say you got a 10 day, you gotta do as well.
So you won't hear from BMO.
And on shop bottleneck, Ted walk why do you think they're totally off on that yet.
Uh huh.
Changing by that too that when you're talking to get even better.
Yeah, well I'm getting the schedule of what we do on my Wheeler. They give you the what you'll see is a day on them.
I'm fine with us.
And on a fully on cool.
You got to judge it.
Yeah.
Yeah.
Okay. Thank you thank.
Thank you.
Mr Mind, commenting on the second question that I'd like to translate here for the team. So the second question relating to the the key strategy for the offline centers plant that we just mentioned I think that we are accruing the points that we have made earlier I think we are really trying to leverage on the core online platform debt free to ask.
Over the last 15 years to more efficiently serve differentiated high value customers.
Why existing users for Asia, because given we have the internal data on all of our customers.
Able to extract a.
It's a segment of the high volume customers for us to initially focus at serving higher value products to through this box because it just comes from a segment and given that we're still in the initial testing phase on wearing off pace on this business plan I think that we would like on the market to do to give a time and we will be keeping the.
The Investor base updated.
Sequencers cost as to the progress on this new offline business plan.
Operator.
The Pip the call again.
Once again, if you wish to ask a question. Please press star one on your telephone keypad.
But your next question comes from the line of <unk> Wang of independent investment. Please ask your question.
When you join them from them.
Hello.
Yes.
Okay. Thank you.
Two questions for Jim.
No you didn't.
Not only on that go into <unk>, just yet on when we kind of I'll call. Each other on Macau, Shanghai Qingdao has had for Jonathan Joey to meet basically that's it easily.
Mr. Thiago from Jacobsen, Peggy shutdowns, Jack Jones day in quantity havoc on.
Yeah.
Can you try to do don't eat cash.
I should have to pay.
On the Shanda Matsuo. Please go ahead, Sir tick up on me Osha margin that we understand that if we to leverage yourself from media to tap into new users and maintain customers that it seems that the brand itself.
I was curious aggregator it's net of Belo into MTS as channel.
Do you have any sense as to enhance the.
Brand awareness to a household name.
Well it can handle issue.
He was employed adjusted debt Oh.
I should just say D C Johnson.
I assume I should say.
Do you have I suppose you joked that EBITDA.
Are you going to do social Oldman day, just taking that.
Don't touch it's no question the Aha data to see rebound is a consultation on.
Just a question.
So going to the Super Bowl is RTP make what day two.
Got it.
Later come any day etonian, nobody shoichi on day, one it seems like they should from the since you got that will see a somewhat quick.
Yeah.
Yeah, Hi, Nick.
You mentioned that you wanted to.
On this is Josh is that type of day send us.
Would you say true inquiries I may I would just say.
T J I can suggest to go go on to Xiaomi.
So winter has achieved a record high financial performance and although there was a surge of price before the recent downturn basing that equate to still remain low profile to obviously for investors.
Example, comparing to a U S company eliminate assuming that.
Insurance had compete.
That it has on the 60 K revenue its market cap is already I guess 50 billion on it.
We don't have any plan to investors.
Investors awareness and exposure to adjusted debt cap estimation. Thank you.
Yes.
Thanks. Thank you it's Ron here I'll take these questions for the team and for the for.
First question on our overall brand recognition in the market I think.
We have been around for 15 years, and I think I think that the pricing that we like to say about our company is that we have built on very limited.
Capital support over the years before the IPO on a V.
Stringent budget, we have been able to do it on this platform to where it is today and we have been very stingy on on spending on brand advertising on marketing in the in the consumer space and therefore, I think that the business model that we have devised and the way that we can leverage on social media channels as our partners.
That's really scale up the business to where it is today.
And that has enabled us to achieved ultimately lifting in the U S market I think it's always a very big achievements. So.
We obviously theres still a lot of work can be done and we recognize that we can do a lot more on the branding side and on the.
The beauty of 'twenty to 'twenty, one I think we announced earmarking more and more funds in terms of really building up a bigger brand presence in the consumer market.
As far as the capital markets.
That's the yes for the first question and for the second question I think that the.
The reason why I guess, we have been a bit under the radar over last year.
On a couple of external factors at play as well.
When we were listed we are very much shaped by the unfortunate timing of COVID-19.
I think the outbreak and we were actually the first Chinese IPO to get done optical with broke out in January of last year and subsequently our various things has happened as well for example, the scandals around surrounding locking coffee in the U S market has led to a confidence crisis in the overall smaller cap names.
On Chinese Atms in the U S.
And then the ongoing U S China trade.
Frictions as although that too you know.
Slightly depressed market sentiment towards Chinese stocks, but then you have seen that in the last one to two months you can see the liquidity of the stock of the company has improved significantly and I think we have to think you know the overall market for recognizing the work that we've been doing at the company and the financial performance has also been leading to them.
More and more investors being on board with our story I guess and we have also been doing a law for investor outreach work over the last six to eight months and.
We are in constant investor.
Investor dialogue with you know for.
A prominent and reputable.
Institutional investors in the marketplace. So I think that the overall recognition in the capital markets have been improving and we would be doing a lot more in this coming year in terms of Investor relations investor outreach and hopefully we can bring.
Moving to stock to a high level and also to create a much better liquidity for for the investors.
Yes.
Thank you.
Yeah.
As there are no further question at this time I'd like to hand, the conference back to management for closing remarks.
Okay. Thank you very much everyone for joining this call and appreciate the strong participation and we look forward to the next call for the second quarter almost for the.
First quarter of 2021, thank you very much.
Thank you for joining us today. Thank you.
Thank you.
Yeah.
Ladies and gentlemen that does conclude our conference for today. Thank you for participating you may now all disconnect.
[music].