Q1 2021 111 Inc Earnings Call
Once again today's conference is scheduled to begin shortly please continue to standby. Thank you for your patience.
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And <unk>.
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Yeah.
Thank you operator, Hello, everyone and thank you for joining us today for 1 watched first culture 2021 conference call.
And on the call today from 111 odd Duck true Gong Yu co founder and executive Chairman, Mr. Jamie Lilt, co founder and Chairman and C E O. Mr. Luke Chen.
All of our major subsidiary and Mr. Harvey warm co C O O mixture of Burry true Cove C O O.
And there's 2 need to go as VP of Investor Relations and business development.
MS Monica Mu Investor Relations Director and Mr. Alex Bill Finance director.
As a reminder, today's conference call is being broadcast live via webcast. In addition, a replay will be available on our website. Following the call. The company's earnings press release was distributed earlier today and together with our.
Earnings presentation are available on the company's IR website at IR adopt 1 more 1 dot com doxy and.
Before we get started let me remind you that this call may contain forward looking statements made on Daddy's Safe Harbor provisions of the private Securities Litigation Reform Act of 1995, such.
Such statements are based upon management's current expectations and current market and operating conditions and they relate to events that involve known and unknown risks.
Switching to <unk> and other factors all of which would cause actual results to differ materially.
For more information about these risks please refer to the company's filings with the S. E. C. 1 O. 1 does not undertake any obligation to update any forward looking statement as a result of new information future events or otherwise.
Except as required under applicable law.
Please note that all numbers are in RMB and all comprehensive referred to year over year comprehensive unless otherwise stated. Please also refer to our earnings press release for detailed information of our.
Comparative financial performance on a year.
Year over year basis.
With that I will turn the call over to our CEO, Mr. Qing Ming low.
Good morning, and good evening everyone.
Thank you for joining our company you'd come Q1 first quarter earnings call.
I'll begin with an overview of the company's business and operational performance before handing it over to book.
You through the financials and detection tool.
We will then conclude our prepared remarks.
Remarks with guidance for Q2 country company 1.
Before opening the call for Q1 day.
And we're pleased to report another quarter of strong growth.
And the first quarter net revenue rose 64, 7% year over year.
So 2 6 billion RMB.
This marks the 11th consecutive quarter of year over year revenue growth since our IPO.
And China Q1 is typically a soft quarter and the health care space as well as the general retail industry due to the lunar new year holiday.
In addition.
Q1, 2020 was unusually strong due to the sudden surge in demand or 10 day.
Related product.
So we're pleased with the year over year growth, which excluding onetime pandemic related sales was 89% Inc. 1 2021.
Non-GAAP net loss attributable to ordinary shareholders as a percentage of net revenue was also decreased from 6 9% and.
And the first quarter of 2020, 242% and this first quarter, which shows our continued momentum towards profitability.
Our top line growth.
And our BCC model.
And we will continue to take the lead deeply modernizations and advancement and China's health care system.
Our growth is.
Estimates of the tremendous progress and our mission to digitally connect patients with medicine and health care services.
Given the transformative nature, and leading that technology of our B to C model.
I will briefly highlight its core fundamentals.
Bust.
And all the D to C model represents our powerful and supply chain platform that encompasses not only the technology behind the platform, but also our network of suppliers such as pharmaceutical companies distributors and other service providers.
This test is.
Typically connected to the <unk>, our rapidly growing network of pharmacies offices clinics and sales.
To further strengthen our supply chain capabilities.
The true new fulfillment center, and North West and northeast and are we.
We announced in March and now fully operational.
We're also expanding and upgrades and some of our existing fulfillment centers to meet the growing demand for our services.
The expansion of our suppliers and network has been key to supporting businesses, and Bob because and allowing them to serve their patients effectively.
Right.
These improvements will also expand our ability to help the marketplace lenders that will their product by our online platform.
There are currently over 900 and market placement is utilizing our platform.
By leveraging our supply chain infrastructure and online presence and they are able to expand.
Geographical reach and attract new customers.
With the right regulatory policies, and China trending toward lowering health care costs, and increasing transparency and efficiency.
And <unk> companies need a new sales model.
Address the changes the challenges presented by these regulatory changes such as volume based procurement.
More intense local competition and.
And taking full advantage of accelerated and our Dl approvals.
In the past 1 drug may be able to enjoy a decade plus of a high sales volume.
But in today's environment.
<unk> international and domestic pharmaceutical companies need to capitalize on the patent exclusivity period and reached peak sales volume for their products and focused on the hospital.
To help them achieve those will continue to broaden our partnerships with pharmaceutical companies and our omni channel commercialization platform.
Offering them access to our <unk>.
A large network of retail pharmacies, our network of both income and affiliated doctors as well as Alan mentioned wide supply chain network.
A good example.
Vijay cooperation agreement with Biogen announced in March.
Hygiene currently market 2 internally discovered oncology medicines in China, and also markets of France, and China additional oncology products and license from a number of well known global Pharma company.
111, and by gene will cooperate around and Inc.
And that plus the medicine class healthcare model.
Leveraging our Internet hospital.
<unk> supply chain network data, driven AI solutions, and online and offline DTP delivery of medicines.
<unk> unique oncology management platform and expand the commercial reach of <unk> innovative drugs.
And.
As of March 31st.
We have over 360, similar partnerships with pharmaceutical companies and.
These partnerships allow for a win win scenario for all parties involved.
Patient benefit by being able to access a much wider variety of medications.
Along with newly approved medications.
Faster than ever before without waiting for medicine to into the hospital system.
And Bob just benefit from and no longer being limited.
Prescribing drugs available Hussein and hospital system.
Allowing them a wider range of treatment options.
Pharmacy benefit by leveraging all models of scale to provide better pricing wider selection and their ability to fulfill a single unit orders.
Pharmaceutical companies benefit by gaming, a wider access to doctors and patients nationwide and.
The ability to sell products and multiple channels without relying exclusively on hospitals for sales.
We benefit as well by being able to acquire products and lower cost and also revenue generating services to the pharmaceutical companies.
Let me break up the B L.
As to B to C model and a little more detail.
We continue to develop our <unk> 2 <unk> model.
Slide 10 platform to pharmacy to consumer.
Here, we provide pharmacies with a wide selection of products and services from economies of scale.
Which includes over 340000 pharmacies accounting for more than 60% of China's retail pharmacy network.
Pharma space, leveraging our supply chain platform can take advantage of our cloud CRM and cloud clinic, a wide variety of products and services and what kind of fee day home delivery and inventory and supply chain management.
We also offer a suite of enterprise solutions, such as tools and support and necessary.
Enable previously offline businesses to establish an online presence and the <unk>.
Reachable.
At the same time.
We're expanding the reach and allow us to be placebo and supply chain platform to doctors to consumer.
By harnessing the power of our industry, leading technology, we're modernizing the traditional in person medical CAD process by offering telehealth and the patient management tools to provide convenience and ultimately medical cash from diagnostics with treatment.
Follow up and routine.
We are proud at the forefront of the health care industry is new era of Internet plus medical cash plus medicines.
The doctors can utilize our cloud pharmacy clouds clinic and patient platforms so per.
<unk> online console systems E prescription services and follow up cash so patients.
Which improves the quality of the top of the patients parents and.
The results and more positive outcomes.
This platform removes an element of geography, and the hurdle of physical distance between businesses and patient.
Doctors kind of engage and interact with their patients and.
Home, allowing for effective and efficient follow up cash all the mitigation of potential complications early in the <unk> process.
This foundation of our model.
He is extending to the seat humor.
Humans are the patients.
Whose digitally connected to abaxis.
And other health care providers and.
And the services.
<unk>.
Consumers can leverage a wide net boxes.
Doctors and pharmacies that were previously out of reach or unknown.
We believe that the benefits to having this integrated Platt.
Platform clear.
Improved access to healthcare and better patient outcomes.
As a result, our own.
And the channel digital platform sales many gaps.
And the health care ecosystem.
And we have seen that increase the demand and pull out.
And it later and solutions.
This is demonstrated by the fact that and the first quarter, our service revenue, while nascent and therefore, not yet and making a substantial contribution.
Total revenues grew to 17 million RMB, representing 161% increase over first quarter 2020.
I would further I would like to highlight the potential for growth in these spaces and the increasing and market opportunities we are seeing.
According to a report from Frost and Sullivan.
China's online consultation market is expected to rapidly increase from 6% in 2009 to.
242% and tungsten and 24, and 68, 5% and <unk> 30, respectively.
This increase is partially driven by China's enormous chronic disease management market, which is expected to triple from <unk> 5 trillion in R&D in 2019 to.
14, non term and RMB 2030.
Accordingly, China's online and pharmaceutical markets.
We expect it to grow nearly and code 2 1 trillion RMB <unk> 30.
And.
Given the industry tailwind and.
And the leadership position by month has established.
We continue to make significant investments in our key technology and supply chain platform.
This also shows our confidence and driving more business and momentum.
Technology expenses grew more than 100% over the past 12 months.
And we have also made significant investments and our patient management portals and.
And other technology offerings.
In addition, we'll continue to add so the pharmaceutical and software support team that we began building last year.
Assisting of professionals.
Ts in specific disease areas such as.
Endocrinology oncology and urology and others.
Our established assets B to C model.
And specifically to PTC and.
S. 2 day to see models are a win win for all.
And our strong Q1, 2021 results reflect that.
Our dedication to improving and expanding the foundation of our industry, leading technology and omni channel and that.
Along with growing market opportunities in health care, and telehealth and pharmaceuticals capacity and an excellent position to continue to deliver outstanding value to our shareholders.
With that.
And I hand, the call to book to walk through our financial results. Thank you.
Thank you for dreaming moving to the financial section on Slide 13.
You can see the details of the first quarter of 2021 and results on.
Slide 14 to 16 of our presentation.
I would like to highlight 2 keep in this and the financial matrix and our focus on year over year comparisons.
All numbers are in RMB, unless otherwise stated.
Let's start with the first quarter results.
Total net revenue has put a quarter grew 63, 4% to $2 6 billion.
Which is at the high end of our guidance range.
Our <unk> segment revenue grew 7 7.
7 6% to 2.
4 5 billion and.
And our <unk> and revenue was down 27% to 142 million.
The decrease is attributed to the first quarter being generally slower for the entire retail industry due to the lunar new year holiday. That's why the first quarter of 2020, and usually strong for online purchases due to the mandated quarantine.
Our <unk> gross margin was 3 6% up from 3 3%.
Ill be to see gross margin remained stable at around 20%.
The improvement in gross margin of our <unk> segment reflect our ability to continuously improve the margin by maintaining robust top line growth.
Overall, our gross profit grew by 32, 2% to $116 million.
Total operating expenses per quarter, we're up 43, 6% to $2 9 billion.
As a percentage of net revenue total operating expenses for the quarter decreased to 11, 1% compared to 12, 8%.
Fulfillment expenses as a percentage of net revenue per the quarter was 2 6% down from 3 5% and.
And the same quarter last year.
Sales and marketing expenses as a percentage of net revenue per the quarter was 4 7% non profit 616, 1% and the same quarter of last year.
G&A expenses as a percentage of net revenue for the quarter was 2%.
Upfront, 1 9% and the same quarter last year.
Technology expenses accounted for 1 9% of net revenue.
Upfront, 1 3% and the same quarter last year.
Primarily driven by an increase and a number of personnel and the RMB and the ITT Inc.
With respect to our continuous investment Inc.
Infrastructure.
As a result, and then GAAP net loss attributable to ordinary shareholders for the quarter was $109 3 million as compared to $109 4 million in the same quarter last year, which accounted for 2% of net revenue down from 6 9%.
As to the guidance for the second quarter of 2021 on slide 18.
Company and expect to total net revenue to be between $2 92 billion and $3.
8 billion representing.
Representing a year over year growth.
Ultimately <unk>.
Percentage to 90%.
But I'll look at space.
And on current market conditions and to respect the company current and preliminary estimates of market and operating conditions as well as consumer demand, which are subject to change.
Please refer to slide 22 of the appendix section for selected financial statements and.
And a quick note to our cash position as of March 31, 2021, we had cash cash equivalents restricted cash and short term investments of 1 point.
16 billion compared to $1 6 to bid and as of December 31 2020.
This concludes our prepared remarks.
Thank you.
Operator, we are now ready to begin the Q&A session.
Certainly ladies and gentlemen, if you wish to ask a question.
Please press star 1 on your telephone line.
Your question please.
Once again, if you wish to ask a question you May press star and the number 1 on your telephone keypad.
Your first question comes from the line of <unk> Huang of HSBC. Please ask your question.
Yes, Thank you very much and management for taking that question.
And syngas from HSBC I hope to us.
And on behalf of Rachel Yang.
My first question is on the book.
And on cost.
See that and the cost.
<unk> has further decreased in Q1.
Just wondering how we made it and.
And with the.
Or do you think.
The second question is about the index. So we came up short and the CRP frequently touched and.
The online store sounds great. Thank you and drugs and.
And our remote medical and insurance payment. So how can we expect net policy.
Impact our business and it's yes, that's my 2 question and thank you.
Okay.
Okay.
Oh, you're talking about fulfillment cost decrease yes.
Continuously improve our.
Post supply chain, including the.
Our systems with growth.
And also we have initiated various BPI.
Programs too.
Improve our operational efficiency and effectiveness.
At the same time.
We are optimizing our supply chain infrastructure.
I've seen that Q1 build.
That's a true new silicon vendors, the way and northwest and.
Both yes.
And though we are restructuring the whole hygiene network.
It enables us to have a more efficient supply chain.
At the same time, we are engaging with more share.
Third party logistics.
Importantly, our coach and coverage.
Sure.
Fulfillment center or ultimate automation and so all these together help us lower the fulfillment cost.
Yes, let me address the industry question and that was a great question.
And by the way.
You mentioned a few policy change.
Changes in recent.
And but also if you look over in.
In the past couple of years.
Allowing online sales of drugs.
Volume based procurement and.
And also be hastened.
Approval and all of a speedy approval.
New drugs into China.
And there are lots and lots of changes.
And if the regulatory.
Hi.
I think if we look at.
And all of those policies and all.
<unk> growth.
2 important directions.
1 is really.
Transparency.
It really is.
And if you look at our business model.
1 of my line is very different from you.
Our other.
Competitors and <unk>.
We do not have a parent company.
And I think ground and a lot of resources and our business model is purely based on 2 principles 1 being transparency the avalonbay.
So this really plays right into our strength.
And the other great development.
And <unk> digital and the penetration and low Trc.
And obviously.
These 2 solutions kind of help us address.
Most of the needs from the pharmaceutical company and also the doctors and patients and pharmacy, the light and once again this plays.
Right and trough strength.
And I must say that.
The Chinese government space.
<unk> company.
And if you look at Pollo.
Policies, we absolutely wholeheartedly welcome those new policies and they actually will lay the firm day.
To make the Chinese health system, 1 of the most efficient months in that space.
And the World I think in the next.
We think the next decade.
Feel extremely lucky.
To be in the rock market and the right time.
Thank you Cynthia.
Yes, thank you very much.
Okay.
Your next question comes from the line of Joe and Brian <unk> of Citi. Please ask your question.
Hi, This is a zone.
Thank you management and for taking my question.
My first question is about the revenue growth drivers, Inc. First quarter.
We know that and you have covered.
A majority of pharmacies and China and.
Which customer group and strategic focus and the next 1 to 2 years.
The second question is about the.
And the partnerships with the pharmacy.
And with pharmaceutical Company, Inc.
Can you share why do they choose yep.
And we'll want to cooperate and can give us more examples zone.
Although the partnership and.
Third question is about.
And you are moving bosman on the supply chain.
And the updates.
Alright.
Upgrades zone.
Supply chain and infrastructures and Christian.
And the first 1 is about your store bought listing status and thank you.
Thank you Zoe and I think.
And.
And your order growth.
Is about the drivers and revenue growth.
It's a great question and I.
Thank you.
We spoke about.
And the EMI.
And my script.
About why we see growth.
At a pretty fast pace.
Even.
Even though our revenue base and has gone over $1 billion last year.
And I think fundamentally our model.
The growth.
It's our <unk> model.
If you look.
Progress, we made in Q1, and obviously we announced.
The 2 new fulfillment centers in full operation and also we are expanding.
And over the existing film.
Film and centers and we increased.
And the pharmaceutical partnership.
And 60.
Plus and we also collaborated with.
And number of.
Globally renowned pharmaceutical companies on their new drugs like <unk> like <unk> like some rate.
We also working with some of the CSO companies and.
I'll also referenced alongside we have over 900.
Marketplace vendors on our platform. This is all allow us S. So thats.
Supply chain platform.
And obviously how do we.
Really break up the past 2 2 and then I explained.
And that was further broken down into assets.
<unk> and 2 D to C right, so in the peak and <unk>.
Besides that.
And the pharmacy side of the business.
And I referenced and number by March 31st.
And we actually covers more than 340000 pharmacies right that is more than 60% and.
Overall market and on the <unk> side, the number of doctors.
We have been working with us.
Has increased and through mobile and <unk>.
Hi.
Walter.
So and so really if you look inc.
The growth of the business. This is the fundamental driver.
And we're pretty confident that we're going to continue to deliver.
What are your robust growth.
Even though our space has become.
Much much bigger base now and then the second part of your question Juan.
He is about the <unk>.
Focus.
Customer groups.
Really on the pharmacy side it yet yes, indeed, the majority of the pharmacies now.
And what would you leave.
And the value we could offer to the.
And the small and medium chains.
And the single stores.
And the dimension of practical.
Graphical coverage.
Instead of focusing on tier 1 cities.
I think our biggest opportunity is really in the yes.
Yes, 3 to 6 cities.
The low tier cities as they accurately those pharmacies that need our services more than those tier ones and the pharmacies. So.
I'll stop at that and maybe.
<unk> done and be talking about the partnerships on the question too.
Alright.
And sorry, the second question to Adobe.
And I've seen that.
Perfect partner for functional companies with complementary strength.
It was all you know that the pharma, obviously a company they have their R&D capabilities. They have other products like too.
Broad market coverage and the penetrated toward consumers.
Consumers that good Friday, and expert medical expert, but they really like.
And to have the omni channel commercialization capabilities and our supply chain coverage. Our digital solutions. These are a perfect match another.
Our plus our data.
And help them.
And improve.
Uh huh.
Okay, and the concrete and insight are.
And <unk> service kind of help them too.
Improve their field reps and efficiency.
And another big profit is that NASDAQ basic company, they like our transparent corporate governance and like our compliance.
And all of these together now and make us to be there.
Choice.
Also the third question and you mentioned about why we.
We are continuing to expand our supply chain I think.
And we'll continue to invest in fulfillment centers, both in capacity and throughput.
We are now also in the process and expanding our coach and coverage.
The weighted with drugs and for bio drugs, we're always investing.
And I hope your automation.
To gain more operational efficiency.
We're through all day.
We are dependent on our original penetration and broaden our market coverage.
Prove our timeless day delivery.
Optimize our systems and operations.
Yes regarding the stockholders of domestic and his team.
And the second half of last year, we started the process of preparing and an IPO on the Shanghai.
Exchange.
Particularly starwood and.
And that work is continuing.
As many of you.
And where the listing process.
And on China's exchange require approval from various government entities.
And because of that we cannot control the timing and thus we cannot.
A clear guidance on that.
And we remain committed to achieving our goal of building and investor base, consisting of both domestic and global investors.
And how we believe that our newness in China, Inc.
<unk> to our current listing on NASDAQ.
Interest and that's just.
A convenient and efficient way to invest in home and 1 no matter where they are based.
Zoe and hope, we and so all your questions.
Thank you Matthew and Florida.
And for salary and through my questions. Thank you.
Your next question comes from the line of Macquarie Zhang.
Investments. Please ask your question.
Hi, Thank you for the presentation for us and investments.
Just have 2 questions.
The first 1.
Being related to the expenses I see.
Expenses have gone up.
And especially G&A and technology expenses have gone up significantly.
And especially on technology can you shed some light on online.
And of the investment and sort of the nature of the of the increase.
Fences.
And question is on the gross margin and see that gross margin continues to expand.
Can you give us a little bit more insight and onto the margin expansion and whether or not we should continue to expect.
Such a session. Thank you.
Right so.
Great question.
Great.
And you look into the details of our business.
And we actually feel extremely confident of the future business and what we want it to do.
Take care.
Opportunity really.
And strengthen our core capabilities to better position ourselves and the marketplace right. So this is.
A tremendous demonstration of our own content over the future of our business.
And.
And the expenses really.
Are happening in the following areas, where we think we certainly investing and to better position the company.
And about technology.
Lee.
More than doubled our technology team.
And last year.
That is a key area for us.
And really.
Differentiate ourselves from our competition and marketplace and.
The other part of an investment and actually goes into the.
And the innovative new businesses and so we have a number of new businesses that time.
And we are incubating.
We are building and the future, we believe especially and they ask.
B B space.
There is going to be.
And a tremendous price there and of course, our fundamentals of the business and supply chain platform.
And obviously a lot of and the investment goes into <unk>.
Our.
Supply chain network and not.
Only our fulfillment centers, but also the partnerships and the ecosystem.
<unk>.
And by operating company.
The key accounts.
Pharmaceutical companies the team that are doing development in the marketplace lenders.
And.
The CSO company distributors et cetera, and and culture, we also make.
And our team and our G&A expenses up going up.
We believe that those investments are there and message even.
Trinity we have.
In the in the development of the healthcare industry in China. This is going to really nail us on the map.
And for development of the company.
So I think about the gross margin side of the business Luca and Youre going to address that.
Yes.
Yes, yes.
Yes.
We are very pleased to see.
We continue to improve the gross margin on the <unk>.
And this quarter.
We growth to be bid and its revenue growth at 77%, but the gross margin and gross profit growth.
1990, 90% mono 90%.
And.
Percentage margins.
The 3.
3% to 3 6%.
And.
Gross.
The drivers behind that is low as we explained.
We are increasing.
And more direct sourcing and pharma companies.
We have better trading terms.
We're done.
Additionally.
<unk> bin.
And being partnered with.
Those pharma space, we provide solutions to them and we are able to achieve more of SaaS revenue service revenue as we highlight this time.
As well as we are focusing opting to focus and selling those high margin products like co branded with <unk>.
And particularly the pharma companies.
So we think that.
<unk>.
With the scale, we are building up we'll have more opportunity to leverage up now.
Network, we built out.
Provide.
Not only.
<unk>.
Distribution and service to the farm company, but also and then the SaaS and marketing service like digital marketing service, we provide to them.
And other service and then also.
And we will be able to generate.
Service revenue from Autozone SaaS solutions, we provide to 2.
And the pharmacies are the clinics private hospitals et cetera.
<unk>.
We have been able to improve the gross margin and gross profit on the <unk> side and.
Total over quarter and we are.
Very pleased and we will continue to do that.
Okay.
Okay. Thank you.
Once again, if you wish to ask a question. Please press star and the number 1 on your telephone keypad.
Yes.
Your next question comes from the line of Charlene.
HSBC. Please ask your question.
Hi, Dr.
Sebastian and thank you very much for taking my question.
Thank you <unk>.
Mentioned earlier and and as we know that I'm moving on dotcom has already actually with great success and in terms of covering.
The pharmacy, and a 50% of the market and obviously be another area of growth is to start covering doctors slashed clinics and by the end of the quarter and you have already covered 30000, Ken can you share a little more.
Our on net expansion plan and how much of the landscape. What you intended to cover has already been cut.
Covered thus far and today.
Talk about the percentage of your auditors.
Now currently originate from clinics as opposed to the pharmacy. Thank you very much.
Sure.
Okay, and maybe Harvey can you answer that question.
Yes.
Oh.
The majority of our customer engaged and currency.
And through our online operations and those pharmacies and clinics.
And.
Jim and just mentioned.
Mainly from tier 3 to 6 cities.
And we also have all site task force.
And the countries provide on site services.
Especially for our new customers.
And those all sized hospitals.
The net service in food.
So this is.
And small clinic and cloud CRM and.
And then I'll stop.
And we also have developed assets.
Which monitor.
Activity of our sales force and <unk>.
Enable our sales force to achieve and much higher productivity and then.
Uh huh.
Yes.
And I'm not sure.
Yeah, I think I want to add another comment there.
Selling I think could be.
The revenue.
The revenue still come from the pharmacies and instead of the clinics, although clinics, who would be a future growth area, we want to invest in and out.
Currently more than 90% debridement and SKU for the to be business as sue from.
The pharmacies.
And is there a target.
And how many coordination and doctors do you intend to cover day and the next 2 to 3 years and.
Would it be you know 1 of your kpis to sort of a target certain revenue breakdown at some point in time down the road coming from clinics.
The F&B, but we're not ready to announce to the outside world, where how the internal plan that.
We have specific targets developed deployed OTT.
And doing that.
So we will be promoting that fuel costs.
Okay wonderful. Thank you so much very clear thanks, and good opportunity.
Great.
Once again, if you wish to ask a question. Please press star and the number 1 on your telephone keypad.
Your next question comes from the line of Anthony price of Odyssey investments. Please ask your question.
Thank you so much.
First of all I want to congratulate you I couldn't I'm an old.
Greek that lives outside of Washington, D C and I bet.
Larger company for well over a year I think no 1 and the.
Pardon me and this quality was objected and no 1 in America would object to the work Youre doing.
<unk> to be at all of your shares.
My question.
Deals with the issuance of shares and.
Let me explain.
Uh huh.
Aye.
Had a lot of chatter and Vodacom some years ago and there were.
And was an issuance of <unk> 47 per cent of the store.
And that's with the stock had gotten up into 'twenty.
Never recovered.
And also the American government issuing dollars now.
Destroyed the value of the United States currently.
And I.
I know you gentlemen are well intended and whats.
And you have a tremendous growth trajectory, but how are you going to protect us.
The outside owner.
For you regarding the price going forward and the issuance of shares.
Thank you Sir Thank you for taking my questions.
Anthony first of all.
We are most grateful.
And.
Having you as our shareholder.
Appreciate you attending the call and listening to our story and also expressing your view.
And your view is.
Very well taken.
We understand what you're talking about but it's.
Rather complex issue and.
I would love to get and it takes.
And to speak to you further on this and we will take your call.
And back and our team is going through some further research on that and.
Awesome.
And do some analysis of course, there is always pluses and minuses on whatever structure, but the share is we're going to have.
And but yeah once again.
Comments on share of wallet taken and.
We would love to have the opportunity to actually speak to beyond that.
And.
Thank you.
Thank you.
Thank you. Thank you I am available to speak about it and anytime and thank you so much.
Our understanding and my question.
Indeed.
And so there are no further questions at this time I'd like to hand, the conference back to the presenters. Please continue.
Okay.
Like we have completed all those Q&A.
Q&A session and so and so.
Monica.
Ending the call now.
Thanks.
Thank you operator, who put out Paul.
Thank you and closing on behalf of the entire 101 management team, we'd like to thank you for your interest and participation in today's call.
If you require any further information or have any hs and visit us and China. Please let us know thank you for joining US today. This concludes the call.
Yes.
Ladies and gentlemen, todays conference has concluded. Thank you for participating you may now disconnect.
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