Q4 2020 So-Young International Inc Earnings Call
Well at this time all participants are in a listen only mode. After the management's prepared remarks, there will be a question and answer session.
As a reminder, today's conference call is being recorded.
And I'd like to turn the meeting over to your host for today's call Ms. Vivian and she please proceed.
Hello, and thank you operator, and thank you for joining so he owns the fourth quarter and full year 2020 earnings Conference call.
And I always had the discussion today will contain forward looking statements made under the safe Harbor provisions of the U S private securities and of the Litigation Reform Act of 1995.
The staged I forget the risks and uncertainties that may cause actual results to differ materially.
Our current expectations.
The risks and uncertainties the pud.
But and not limited to the dose are light and our public filings with the S. E C, including our annual report on form 20-F.
So young does not undertake any obligation to update any forward looking statement, except as S.
As required under applicable law join us today and call a miss the changing our founder chairman and CEO and Mr. Many of our CFO at this time I would like to turn the call over to Mr. XI Qi cash piece.
And should that yacht and yacht she'll Harley Harley and the city due to the trend in Thai baht there Holly.
Thank you everyone for joining us for our fourth quarter and the force 2020 earnings call.
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The ended at 120 of with a solid quarter as total revenues reached RMB 425 minutes.
Kris all from 19% of year over year.
In line with our previous guidance.
Although the small outbreaks of COVID-19 across the province in China of doing the quota the.
Matt as I said, if the industry as a whole and all of our business remained on track and remain on track.
And in particular, our use of base kept the strong growth momentum with average mobile and they use reaching eight nine minutes and the fourth quarter and increase of 142 per cent from a year ago.
The growth was mainly attributable to our efforts to continuously expand our content of library that caught us too and he says the mountains as well as the launch of innovative services based on advanced technologies.
Such as the V R score and life diagnosis.
Our progress was well recognized and my medical service providers, leading to new cooperation with many of them.
And the fourth quarter, the nimble of pain medical service provider and so yes platform.
The 4000 to 700, and the 46 up <unk> 40 per cent from the prior year.
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Due to the impact of the COVID-19, pandemic, 2020 and with the Chinese new year for the matter of aesthetics industry, especially for surgical treatment of.
Cost of a generally much higher and people would tend to take more time to consider different factors before making final decisions.
As of date, the surgical category is on track to recover at a relatively slow pace, but the deepening their compensation was so young medical service providers with stronger operation capabilities and all of our comprehensive services Apple to outperform tough market conditions.
And thereby greta.
And thereby greatly improving their customer acquisition performance.
Looking ahead, along with the tightened and they regulate range, even alignment and the pull of.
Development of virus parties throughout the value chain, we believe the industry will progress and a better and more of.
What are the manner.
With more trust and transparency of Mount All service providers demand from end users will eventually and ensure the sustainable and the housing gross of the matter of a set of industries.
So I will not and Peru, Harley and our unions of Jeep Bushong flu shot and you said and so being kweku each of junior and that you can call.
Now I would like to share with you some takeaways and to do a recap of this past year.
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Firstly, we continue to drive engagement and use.
The gross with enriched and quality content and the valuable information building on the success of the 2000 Twenty's true.
We are now recognized in biologics and the wider use of base for our service and trustworthy content.
This group of users share similar attributes and more.
More socially informed and knowledgeable and spend time researching the further evaluated the options and heat.
By the end of 'twenty, and 'twenty beauty diaries, and so we on the platform reached $4 seven minutes and the average monthly reviews of the articles, we distributed and various social platforms reached the one point of three 2 billion and for 2020 and increase of 150 per cent from two.
2019.
Meanwhile, with the successful launch of a serious amount of income things such as so we ambassador and use the incentive programs and continue to provide our content creators with accident and support of multiple level.
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Overall, the attribute of our culture.
The success too.
The content library.
Beijing community experience and the rising brand awareness 2020, we established our brand proposition as the most of the trusted platform in the metastatic industry.
As part of our social responsibility and and whereas in the ship.
The initiatives.
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This year as ranking of the blockbuster of the right variety show sisters will make race significantly raised the total young brand awareness and of the brand image and.
The views of related of wastewater and etops. It reached 43.76 billion, while the organic traffic on our site search to buy 228% year over year.
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Check of delay, we enhanced our service providers by helping them with Badger Talcott and customer acquisition strategies.
Our service provider partners will happen to hit by the COVID-19 per damage and the early 'twenty.
A graduated carve out of during the year as the business we've done.
We opened and improved.
Those with limited cash flow and the less capability in online marketing.
And to find it and fishing and solutions to reach their target audience.
And the second half of 2020, the rollout of new membership product and our platform to help small and medium institutions acquired of potential users and more sales feet.
To address the restricted free traffic to offline stores during the pandemic, we launched a V. Our store for a doctor of highlights teachers of.
Each store and the major of products to our trucks and talking to a wider range of use of interest.
Asphalt operation of support we created a dedicated teams for surgical and nonsurgical and new business development based on the specialization and the focus of each hospital.
Thanks to our strong user growth and the REIT.
Ring of owned it the brand name and service providers.
Ever more aware of the value of all users and have partnered with us for increase the visibility.
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Sales Associate your chart you showed the way you don't have but you shouldn't just on the surgeon showed on the shelf as a basis and as usual shenzhou pursuits, and how does your total cheap.
Certainly we continue to investing R&D and the capitalized on the advanced the technology to serve our users as the COVID-19.
Our users away from the inputs and Doctor consult.
Consolidation.
The swiftly launched a series of online products to provide removed the sub.
It is with user friendly technology.
For example from 2020 the completed a total of over 550000 of life diagnosis and the 70000 of LIBOR of castings we.
We continue to improve our algorithm to ensure the right content is distributed to the right users.
While promoting high quality of original content.
All of these approaches effectively save time for users as well as a medical professionals and and shortened the consumers decision process when choosing the appropriate treatments for their needs.
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Now I would like to give you some updates on our strategies for 2000 and twenty-first.
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And the use of pronged as our user base has been growing quickly over the past few years and crazy name off of new juices, joining our communities maybe he experienced and have limited knowledge about motto set extremists and therefore.
And therefore, we are in the process of refining of our operations to address the needs of the users are different and habits and build loyalty and high retention rates overtime.
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We are continuously enhancing our community based content offering working closely with medical professionals to find new ways to reach new users and attract the use of interest by generating more diversified and high quality content.
So we are spreading awareness and effective marketing campaigns, where.
We promptly convert high demand of volume among users into real transactions. For example, just March whereas all of our limb festival crowd to this event, we partner with key opinion leaders and its the forces were shared at the professional knowledge about how to sleep down and dosing healthy message.
And the commented on various medical city of new treatments.
These social conversions influenced a large number of users to consume content related to these hard and of training topics of our platforms.
Therefore doing our steam festival, we were able to meet demand by promoting start off the treatments that are well received.
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And the business Brown, we believe nonsurgical categories will continue their strong growth in 2020 one.
And this area and we plan to express and our standardized service process to enhance service performance. We have also extended the network coverage of our partners service providers and optimized our operations four key categories.
And at the same time, we will continue to strengthen our traditional advantage in the surgical sector.
We are aware of recognized by consumers and a matter of service providers as the leading medical aesthetics. The information platform in China, and and we will continue to leverage our multi year operating experience and close relationships with top tier doctors to provide high quality of services.
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In summary, we believe that the Chinese medical aesthetic Inc. Does tree is all of the.
The gross growth trajectory as the leading player in the sector, we have the responsibility to make it more professional and ethical by promoting the development of industry norms and to provide our users with services of real.
Looking forward and we will fully leverage our competitive H and content offering technology and the user base.
On the user centric force ass and continue to explore deeply into the matter of a set of industry value chain and it became the multi trusted platform and the proud of consumer healthcare service industry.
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I would now like to turn the call over to me, who will go through the financials for the fourth quarter and per year.
Thanks, Chris please be reminded that all amounts quoted here will be RMB term. Please also refer to our earnings release for detailed information of all of the comparative financial performance.
And year over year basis for the <unk>.
Fourth quarter of 220 total revenues were RMB $424 6 million of.
Up 18, 6% per year over year and in laundry and old guidance. The increase was primarily due to and increasing the number of paying medical sales.
And this was the issue.
And we've covered is the compare.
The COVID-19 continued to east and China, leading total revenues and information services revenue was RMB $335 9 million of 27% of year over year. The reservation services revenue was RMB 80, 80 points of $7 million.
Decrease of five 3% year over year cost of revenues was RMB $63 6 million up eight 7% year over year total operating expenses were RMB $331 2 million of 48, 6% Hell of it yes.
Sales and the marketing expenses were RMB $210 4 million up 59, 2% year over year, primarily due to the increase in.
And the expenses associated with marketing activities and of payroll costs.
Yes.
G&A expenses were RMB $49 9 million up $38 four per cent year over year, primarily due to increase in payroll costs associated with the expansion of and administrative employees.
And development of expenses were RMB $70 9 million of 29, 6% of year over year. The increase was primarily contributed country beautiful attributable to an increase in payroll costs.
Income tax expenses, one the 13.0, the Lin from <unk>.
Compared with income tax expenses of RMB $29 million during the same period last year. The change was mainly due to the decrease in taxable income.
Net income was on the $37 7 million compared with the net income of of on the $69 9 million in the fourth quarter of 2019.
Non-GAAP net income was RMB 62.2 million compared with RMB 86, 4 million non-GAAP net income in the same period of 2019.
Basic and diluted earnings per ads attributable to ordinary shareholders were RMB <unk> 60.
And zero point of 36, and the <unk> zero point of 35, respectively, compared with <unk> zero point of 68, and RMB <unk> 65, respectively. During the fourth quarter of 2019.
For the full year 2020 of total revenues were RMB 129 billion.
Not $12 four per cent year over year within total revenues information services revenue was on the 962 point of $1 million up 15, 4% year over year Reservation services revenue was RMB $332 9 million up four 6% of year over year.
Cost of revenues was RMB $212 2 million of 60.
Six 8% year over year, due primarily to an increase in service costs.
And to online platform development.
Total operating expenses, one the 114 billion of.
41, 1% of year over year net income was RMB, four 9 million compared with RMB $176 7 million in fiscal year 2019.
Non-GAAP net income was RMB 97 million compared to RMB 289 million, Inc. Fiscal year 2019.
Basic and diluted earnings per share.
Attributable to ordinary shareholders or on visa airplanes of euro five and of 0.05, respectively, compared with basic and diluted earnings per ads attributable to ordinary shareholders of <unk>.
The one point of 64 and on the one point of 54 and fiscal year two signed on the 19th.
Now for our balance sheet as of as of December 31st of Tucson, and 'twenty, we'll have total cash and cash equivalents restricted cash and term deposits per.
The deposits and the short term investments of RMB two points of 68 billion compared with RMB 284 billion as of December 31st of 2019.
For the first of quarter of Tucson, and 21, so the only expects total revenues to be between RMB 320 million and the RMB 330 million and Richmond.
Representing 75, 3% to 88% increase from the same period of 2020, the above outlook is based on the current market conditions and the reflects the company's preliminary estimates of market and operating conditions and the customer demand particular, Inc.
Few of the potential impact of COVID-19, the effects of which are difficult to analyze and predict which are all subject to change.
This concludes our prepared remarks, I will now turn the call to the operator and open the call for Q&A, operator, we are ready to take questions.
Thank you ladies and gentlemen, we will now begin the question and answer session.
If you wish you asked the question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press the pound or hash key.
If you ask the question and Chinese please repeat it Didnt English immediately please.
Please limit to one question at the time, if you have follow up questions. Please request to rejoin so once again, ladies and gentlemen, its star one to ask the question.
The first question comes from Thomas Chong from Jefferies.
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Thanks management for taking my questions. My question is more about furniture and the one and the outlook in the next couple of years.
Our strategy or the surgical and non surgical treatment and and.
And also what are the similarities and differences.
For you and all the competitors in terms of all of our advertising and the operation of advantage.
Thank you.
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First and the non surgical categories.
And that's the number one is to treatment with.
The low average transaction value, we want to stress and the leading position in the quantity pricing as well as the public debt.
And the damage to those middle and the high average transaction values.
Got you and standardize our services and the improved performance with so we are past two of target of mid to high end user groups.
And we will still true our ambassador program and the new media team, which gang has our partnerships with the upstream of games and increase the amount of content and announced digital payments in our community and also drive more user engagement and.
Lastly, we will promote a more shopping basketball was the such as the any age.
And the aging.
And claims festival and other promotion promotional activities.
To strengthen consumer awareness of our professional advantaged non surgical categories.
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And I, just sort of conjugal why each of the phone call notes from Hong Kong to do and zones have been chosen to go hungry, you bundle and towards human touch and the yellow.
And the surgical categories. The first of all we want to we will expand the list of doctors by introducing a larger number of top tier searches.
And with our and broad adopter list, including doctors from public hospitals.
And also we will share more features like so young doctor public account.
Life diagnosis and Lee and.
And in this way, we could help adapted to it.
And so while upgrading the IP.
And also to highlight the differentiation.
And in some sectors like the.
Surgeon I did of surgery.
Rhinoplasty abreast of and also sounded like the fact of fat Jasper we will set up dedicated teams for each category.
And we will restart the overseas the surgery of business in Korea, and Japan coding to of the epidemic situation of overseas and policy.
Policy changes and traveling abroad.
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And to the tune of high yield.
Yes.
In terms of marketing we are the only platform positioned as the vertical professional medical aesthetics our.
Our competitive position as comprehensive E Commerce platform would you make and it's too difficult for them to be seen as a focused platform.
All they are two of small in size and have a difficulty to investors and sustainably.
And in terms of operation our dedicated team allowed us to fine tune the.
The base of spread across different categories and the regions.
And that's all thanks.
Thank you and mix.
Question comes from Brian Gong from Citigroup. Please go ahead.
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Frustrated about the power of real.
You know the.
The prostate surgery on the medical aesthetics industry.
Especially after the Chinese new year, and the one does management expect to see the full recovery and.
And the one it will translate into our revenue. Thank you.
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And the uncertainties of the pandemic have led to weaker the consumer confidence overall, however, thanks to our engaged the user base and high quality content and community building capabilities, we have effectively engaged repeated users and.
And added new users all the platform.
And so you can see that the EMA during the fourth quarter was close to 9 million and and this maintained at Rosemont went up of all familiar and 140 per cent.
And and.
And with.
And with the continuous increase of demand from medical aesthetics.
And we could see that the picks and the hospitals and back to more and marketing spending and specialty and the grid the acquisition. So.
And in the fourth quarter, we actually grow a lot of pain medical service provider and member to over.
The 4700 and members and the this is the highest debt growth.
Growth compared to the several quarters of last year and this average AD budget of each customer also grows steadily and.
Gotcha and.
Surgical treatments will heavily hit by the epidemic of due to the market. The high average transaction value overall of the industry is on the right path to recover but we.
We could see steel and some gaps and transaction and scales as well as the transactions value per average customer compared with the peak period in the fourth quarter of 2019.
So we get them.
Based on some of it and you know of the situation and the earlier.
2020 of.
Consumer the mountain grow.
And especially from the non surgical sector the keys.
This will ultimately drive the overall market growth is healthy.
That's all thanks.
Thank you and next question comes from of Leo Chiang from Deutsche Bank. Please go ahead.
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Tony of genes and tell me and I kind.
The change and be the Sistema and.
What's the advantage of grizzly and don't usually from UBS, but thank you for taking my question. My question is in the face of fierce competition wise strategy, where you adopt two of competing with others and the industry and from.
What are the entry barriers.
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Of course, you Sandy Hook T cell and you don't put your total shell at the Sun Life Sciences and want.
So the <unk> Shanghai, so any of you may be even harder.
And the virtual load of your Mega and true.
In summary, our competitive strategy is true depreciated our from.
From our peers, which include three main points.
The first is focused on teams and excellent services improve user experience and.
And secondly, combine e-commerce community and AI technology to improve use of decision making efficiency.
And the third is strengths and brand awareness and increase my share of users and and continue to build out from our reputation as a professional medical aesthetic service platforms.
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I won't tell you made there and some other things in a high so the share sometime ago. You made you go to the total universal dancers Shan Shan Shan Shan the jobs and go downhill change out and so as you said sometimes of hot.
One of the Chilean and got a flow sheets, and Oh, but how about some of you know who consulting and Baja.
Bulk of them until you get all of it so I assume he came and high Commvault is and when do you draw the although most of who are the alerting the announcements.
And I'm really hits home zone, that's critical range Shahada elimination of one another chunk of about four towards the Jensen and shop by Paul Chung of who the two of the goods and L.
So the official show from your momentum and what you won't make SOCAR, Georgetown and you'll put all of their whole so low wholefood of Belgium, Aqua and home being tumble us I mean the iPhone.
Because of that you'll have.
And she is doing and Chicago Foods, you go you or somebody at the heart, So true T cell and Jaco T and.
You May Social fund me and will need from Yaron <unk> of the bonds and the people shouldn't put one a who's who of social and so you also though and so I feel so so you don't know pneumonia for me and oney in case of the judge the cinch, although of course non U S. <unk> com channel sort of sit on most of.
The yields of you don't you're going to change and so that was how deep tour and she was home insurance on the change on the B one judge how the woman the the year.
The other back home.
And the first point right now of current today most of the institutions do use the online platform as a core of buying channel to direct the traffic into the offline shops.
Most of them are attracted by the low price of course, usually persuaded to upgrade it to the packages and painful and much higher services.
Our team and Dubai sales consultant.
Users often feel cheated and exactly the service quality is not guaranteed.
We have observed that platform with this business model to achieve significant growth in orders in terms of orders are <unk>, but we do believe that in the long run. It also result in net new brand sentiment.
And we will continue to a per page.
The quality and extend our service online to give greater security to the performance.
For non surgical category, we will continue to promote and pass to enhance the standardization of service and treatment.
As will the views from third party investigation and the consumers we were able to work collectively with the basket performing institution and of continuously improve user experience.
The medical aesthetic surgery, we continuously we researched and select top tier of plastic surgeons.
All of our 'twenty, 'twenty, one and where the Doctor list.
At the same time, and we also provide top tier doctors with a shared facilities and the opening and the operating room and all.
The total control overall quality of our E treatment.
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The east and some closer to the one challenge and pipe are two of them the answer.
And your bulk wish all of them and nimble from Goodyear and took a piece.
Key foods and two of them they genuinely world our sui each of the soon.
The center of the Joker zone societies on the opportune so of shouting from you.
So should the T cell.
In terms of the improving users' decision making process.
We are the only platform to have both e-commerce and community beauty capabilities.
In addition, our air twos, helping the user having used the over one 5 billion times, including the oldest of official and the scheme.
The scheme mapping techniques.
The commodity nation of these three factors have other that allow us to continuously improve the efficiency of the use of decision making.
Our new line, so should the comparator and so.
So the elements of the telephone young women and doing yoga machines of the suddenly the downtown.
And lastly, our continuous brand building and campaigns and social media have also strengthened our brand awareness among users.
The center of the Joker, which other Joseph C on the until the Mpls.
All of this should be the most important to entry barriers.
Yes.
That's all thank you.
Thank you. Our next question comes from Vincent Yu from Needham and company. Please ask the question.
Other follow ups.
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And she used to go up.
And I hope what does he went through it once you sort of playing music.
Ellman Ali on hand.
Good to know she she should be I'll mention the whole show.
And so when he tangible and the only.
And.
And when she gets into and as you go and talk a good Shimon here some of the whole anyone that's usual tissue section of town question on from Russia momentum.
All of our Union and Chipotle.
The pension the tissue she.
And what kind of the whole.
The clinical once you know what you're in the container store, how do you suggest youre going to come and now you're sort of shown and tissue and nimble and into Portugal and she she is at the point you made some kind of cheap goods for sure.
And so on top of it and we've got you see good the Chengdu cheap goods.
The Eagle that's a trip to informed me of homebuilding part of Michigan for helping me all of that.
Good good.
The truly about the whole thing Asia.
Net income management for taking my question and my first question is about the the user growth and the motivation.
Between 20, and we have a very strong growth momentum momentum and use the gross and do we think about the trend between 2020, one and the what's the amortization of our expectation and.
In 2091, and my second question is about to the still the umbrella.
So how do we think the pen.
Can management share some details.
Details about our plan or strategy around the city and parse which seem to be a very important step for the.
Music experience and validation. Thank you.
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So all of our Union and no on the low Yogurts ozone Zhang who the tissue range. You are the army I know you've got sort of done.
And going to the auto Jones from Goldman culture, and so you know who the courtroom.
And we will maintain our 2020 here of the growth strategy in.
And this year and execute a more forcefully and focus on the acquisition of mid to high end and the premium visits.
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You won't go the simple knows home and use of the harsh and John and I just saw the chocolate and Ghansham that you don't Wanna and Sunbelt the depot the top total.
E Mail and you won't put Sunshine and kalanchoe low single chunk of them you've got your name of course, all true Arps.
<unk> got several of them and gone for the food and got new cohorts I search engine and the Giulio No T shirts and go the caution so they don't hold me and I'm sure you may the sort of it was just huh.
Tom and thanks to the EMA and shelter of the junk of up Windows are each any of your son.
Got you and you don't see on and Youll see the first ammunition.
Many of junk of tissue a cadre.
Core non op income quarterly and what's your view.
And users, particularly they fall into.
Triangular distribution model in most of the mass consumer categories with prices.
Price sensitive uses of occur.
And for the maturity however for medical aesthetic services the user they fall into a life of shape the distribution structure.
With mid to high end and a pretty major search for me and the majority of the mainstream market.
These price insensitive users are willing to pay for quality service and of batteries out too far the agreements and the transaction value of treatments are usually above 1000 the RMB.
We have significant of that foundation amount of this use of coal.
And there will continue to reinforce and expand our reach to them.
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So any of you may if you and hydro and especially I only agenda.
And our young women Jong tissue, Suzhou, which and how long the other.
Tissue Shanghai's of yours.
Yes.
According to the third party and market research.
In terms of debt you just perception of so young at the professional medical aesthetics platform is by far ahead of our peers.
And this year, we will continue to investing our branding and the consolidated our advantage and users mindshare.
A lot of women's or types of immune Hyatt Saddam if you saw and the HOKA attuned to the diodes and the chute zone.
So youll do you all know who are the jobs the option so the increase.
In addition, we are continuously improving the effectiveness of our use of acquisition.
Top of the users sure shall video platforms, and social media channels, which has helped us acquire the more premium juices.
So you will get into the Permian women's young tenths of a.
Youll protein and the Ocean, So you Angela and young girl and her.
Chico the telephone major young younger and who do you go you all of you.
And there's hundreds of wisdom.
And as long as people saw the Hershey adoption zone, EMEA and wood ourself as the.
Sure I will need Joseph Thompson, who as you went through how the email and tie down the highway so the future.
Sure and so as I have done sheets, and I cannot and do them in the solar which I'll show you the shop by one of the other institutional and many of the half year 900, so much of the switching on the way of Genesis how true.
For monetization, we will insist on the principle of faster user experience first.
By continuing to expect the pane of institutions.
Operations and are regularly reviewing the uncertainties of drugs and.
Medical services used by those offline shops.
Strictly prevent fake transactions and the reviews to avoid misleading consumers.
Our press and we believe we have the most of complying to the medical aesthetics platform and the market.
And we will continue to comply.
And the promote industry standard to strengthen our brand image.
And we expect ex Pat.
And we think that this may have some shut and term.
The impact of our revenue, but in the long term we see.
Can you speak to the strategy because we believe this is the right one for the long term growth and it will bring more value out of service to our loyalty customers.
Going to the other and Chicago will tell your daughter's how your share.
So kind of Ghansham the stairs.
And then some of the P&L, Melissa Osha and sort of at home.
You mean, theres, almost and US assure Chico does is it sales and some greater Apache okay.
Dominant thoughts at all so I'm glad that you go the babies are full but usually to halt the Chico are homegrown youll hold of him job from the old lunch and free.
The annualized Hugo shaping and out of home.
Why not and that's the cost. This is also the only orange on most of the yogurt.
You won't guardians of the food.
And like those are our unlike the traditional service to our end customers.
Usually those.
Quantified it.
Institutions could the richest our platform and.
And as they have the license to all of sudden even though it's a fall of other restrictions, but just for the Sui and pass is actually rounded on behalf of all ourselves. So this is actually used our branding to promote all of careful.
And Chicago, most and us.
And younger essentially equal fun, a PDR Belgian the hot and a whole series of Anshan, the helping share shelf is the shelf. So she choose shelf of it or you may shuffle, lesser the Shaanxi ones and two.
And with Georgia, and John and this is something the whole yoshi on lights of due to the summer that's how Joe the I sort of heat.
And the whole future on Xeljanz and the associate she sidewall in Israel. The how would you go down zone.
Younger assertion equals 30, if I may of it how tautology go to show and shelf as of the true Tivo Fool P. J O E. M E T shirts, and somebody you got the John Yeah hold and Tunghwa Sameer and.
You Hope you got the teacher right the way to share a $2 and therefore, she lands on the Tivo accusing you of somebody at the high volatile and some girl who the pizza.
Of the Belgium.
The first of all four of those product show and so we and parts they are standardized and more safe and also could be in the a certain price and.
This way, we kind of up to.
The two to yourself and SRP per.
Two of them.
And to working with those offline institutions and hospitals and also working with those of selectively.
Selectively working with those and offline institutions, we kind of to set up the twice and set up the price and this price is certain.
And in this way, we are we could and to a proof of our user experience, especially from the online parts.
So and my second of women and children and how you will.
And well Yeah, let me I'll choose absorptions on the surety.
Hey, Alex, Utah, and Sophie that's the deep well and they all true sessions you call the hold and how to do that you've got the patient to the hold me all the homegrown.
The two that you go to a food deserts and.
And I hope not.
And I'd say those sort of be your life and how you would sort of the controller, Jon and you hit it.
The well materials from China, and the charming in Georgia and cases, I just how much the.
Tom on the Chicago down the Yugo food and the hotel now done which I visit.
And when we kind of all of the phase <unk> T. G. That's only and the John the Asia.
Oh no.
And the whole milk way, so the shoe the sandwich and the ease of Melissa.
And the chance I and most of the Rite aid us the whole Shang chunk of outcome.
<unk> and Dupont.
We think that we actually go deeper in each of the cooperation with all of our institutions ranging from like the the products it.
Designer and also the <unk> piece the designer and also to have control of the whole quality of such services.
And we think that's the way the fourth day to Cascade and several cities and it is the successful and day to be well received by our interest as we've gone into extended two of the home interest of China.
Gotcha.
Okay.
Thanks.
Thank you. Our final question today comes from share cheaper from CIC. Please ask the question.
Yeah.
And she said when he comes into the went up some of that all.
Oh, well the vantage of kind of year to show the hormone kind.
And those who kill the judicial ruling and how should we kind of do you don't see myself and the southern California and somebody likes it won't go nausea, and Leach who didn't articulate that hang on sat that she's going to go and jump that sounds you'll be fine.
And management for taking my question. So my question is regarding the reservation service and we can see of declining reservation service revenue in both absolute and relative ways. So how do you both of the sounds of the reservations on your platform in the future too from a complete.
And the business model. Thank you.
Certainly the human.
Total and she'll icon on the day.
And the shelf as a way of tissue Georgetown shows onshore than the other you about all the rules and you will pay for it or you may baalshem hoods of intelligent.
And so the sungard in the form of weighted Shanghai, Shenzhen and simple to anyone else and fossil and you'll answer and whether you can shop choices sanjana indulge localization and Sunshine.
In the short term on the consumer side, and we will continue to expense and the guarantee of the reservation performance in terms of like the advanced of payment insurance and the dispute and mediation.
From the merchant side, and we will use all of my payments as towards the expansion of our traffic distribution and the conversion of promoting merchants to guide users to play orders.
And it's hard to like on the well and it's just.
The bulk of <unk> bulk of Xi'an, and saying Hey, the.
So you made an assumption and hard up and so this whole idea of high single and Tango Morris.
And the Tango and most of the sound of and I don't know the chute zone pitch all of a hold of it is almost of it.
The current holiday you made there's homeless youth usage soon and so essentially and who the peer buttoned up.
And we're gonna get halfway bulk all of your charge of a pleasure.
And D&O dishes, hanmi and hordes of food of Belgium the.
And I was just a timing of culturally carrizo and patchy that shows all of the sudden and so she is asking of entire image you go the SaaS.
The shortest distance of Portola.
And so it'll be one suite of ideas homeless of Thailand day, shellfish, and you're going to how the 40 and the O P.
And you're bound to Giovanni and Charlie.
The Xi'an and it sounds I mean, it's of course, I mean, Judea and juices and Theres almost of the Sochi a.
Towards the yoga outside of U S onshore than June zone, who runs of the shelves will be one poster.
Scott you sort of go more towards of the shelter of the T. Yet the Cushing.
And in some ways of doing the opinion tied on and off from golf. It's the kind of much handful Kailasa. You mentioned later, so you got hold true.
Timing of the culture and how can they.
The TV content for them.
Your line and that's how much of that George is the ones I pay some constant the eastern time share.
And partly.
That's all of the medical aesthetics e-commerce platform, including soil yourself actually adopt a goodbye and volatile which is a relatively outdated e-commerce model.
And Ah batch of medical aesthetic.
And I have to comprise of.
Of online and offline marketing channels to form a closer to the system.
It should include the following characteristics.
And.
The first day as a standard products or services.
And the second is should be the online measurement of inventory and the reservation.
And the certainly but not the least of important is upon the depth of real time communication between the commerce platform and the medical service providers.
Provide us true technologies towards the like the.
All of his.
And we believe this close loop E Commerce model should provide the consumer with a much better customer experience and help service providers and institutions and pool operational operation and those things and efficiency and then Oh, we think that we will gradually upgrade so we of Pos to form a closed loop sales model.
Which will hum.
Which will make it easier for users to place orders.
And to a better user experience. Meanwhile, so young pods feature of onetime purchase multiple service model and having placed and users' interest to our platform and the we believe that are the.
And right now.
And so we are past actually.
Copies of the more than 10 cities and the.
And 10 of.
More than 11 cities and the.
And covered 10 hot categories. The most of the popular keto range include like the skin cleansing and some laser of project.
And at the hottest cities and meaning include the top tier cities like Beijing, Shanghai, Guangzhou and Shenzhen.
That's all the things.
Alright. Thank you so ladies and gentlemen, we have reached the end of the question and answer session. So with that we conclude our conference for today. Thank you for participating or disconnect.
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