Q3 2021 MINISO Group Holding Ltd Earnings Call
Okay.
[music].
Ladies and gentlemen, thank you for standard Brian Welcome to Minnesota Group Holdings Limited earnings Conference call for the third quarter of fiscal year 'twenty 'twenty. 1 that ended March 31, 2021 at this time all participants are in a listen only mode.
After the management's prepared remarks, we will conduct a question and answer session. Please note. This event is being recorded now.
Now I'd like to hand, the conference over to your host Speaker today, Mr. <unk> director of Investor Relations. Please go ahead.
Thank you Jason.
Hello, everyone and thank you all for joining us on today's call.
The company has a nice it's called the financial results on that day.
On this release is now available on our Investor Relations website at IR told me thought about cash.
Did you hear from our chairman and CEO, Mr. Cope well, yeah. We are always an overview all day.
He will be followed by a simple even John we on draft all financial results in more detail.
Before we take on Gretchen.
The book continue I'd like to refer you to the Safe Harbor statement operating.
Patrick.
Also applies to this call as we will be making forward income statement.
You also know that we all discount non I first Madras day, which we have been reconciled to the most comparable measure.
On the international finding true bodies, Denver and profit are these really big.
Each day.
Yeah.
Could you repeat your question.
Oh.
Mathematics on things.
Hi.
Uh huh.
Okay.
With that I will.
Now I'll turn the call over to yeah to give you a business update.
Please go ahead Sir.
Hello.
Yes.
Okay.
Good day.
Thank you don't need the Caribbean too.
I didn't say that it could be it took on that Louis balance sheet.
True.
She doesn't really well control.
Sure.
Since you didn't you eat cookie bamboo.
Jim on each each day.
Kinda on Alicia on your print you're still going on.
I missed that.
Do you get at Barclays and we're Gonna Buendia, yes.
Yeah, Yeah yeah.
It's not that you don't think you did.
Yeah, well funded.
Hello, everyone on modest quarter over tens of hundred 1 units or recorded revenue per M. D. 2.
2 points in Q3.
I'll take that 1 person per year.
I'm not.
Got it.
Domestic business delivered a combined revenue maybe 1 point to Devin no idea that up 75% year over year and 12 per se.
2000.
Since 19.
Today's conference call on.
Shell is a major development, we cannot achieve what both MISO and top part this quarter.
So I guess, maybe it's on.
What are you on this change.
You.
Goodness with Cumulus would you agree.
Yes.
On a year.
Does that tell you the picture that you see there. He was showing that you were supposed to be a partner on Deutsche <unk>.
Uh huh.
Yeah, well you deal with Hulu since you get hung it couldn't be turned on now literally killing.
Kelly.
True schinder on eating it cookie tins on G&A.
Uh huh.
Well meaningful out the basket the operations continue to deliver on the cards and recovery this quarter, while the fish meal kit based on COVID-19 on the January results in Shandong sports certain stores group.
It sounds low masses at lunch day part.
The following months to achieve a healthy recovery.
As a result domestic operations on meaningful brand recorded revenue of 1.
1.72.
Offsets 1 per cent.
12 per cent compared to this day.
2019.
But he was on.
What do you see on supposed to go on to Xinjiang system to a job she took public balance yourself, that's essentially on constant.
So it's all on the army and he is on.
Could you share share it was time to do that which is what he or she didn't get the group.
Do you balance you said that essentially kidney cancer as well.
Why don't you don't chat don't sit on the weekend or somebody could.
Yeah.
Oh, Yeah, yeah yeah.
Yeah on a chance with them and then Kimberly.
Oh lets see here tells them again, so just if you could at least.
It sounds on so you can see that because it is all she has to say on the Sanchez you got to sit on many I forgot.
Plenty of money on sort of June.
No channel stabilization.
Starting on the Shelby Sudan send children up I'm not sure if he's on T.
To give you sort of juggle joked on the Lewis.
Well, we cannot work on San Jose on it didn't you took on.
Well they tend to be kind of on news on that shot. So this is on the could you up on that.
Houston had 1 major on G C change in the tuition shots on trying to quit.
You couldn't do it after that.
We added 44, new medical schools in China do you already have in the court.
More than 90 Hudson Mused coastal book ended in Q3, and if you're on.
Yes.
You already said on the top and bottom we made significant progress.
Our strategy category.
Yeah.
With that group.
Okay.
Okay.
We know that no.
Operating matrix volume controls that's right.
On average die conversant on rabies.
Book value right.
Yeah.
Oh Wow.
But rental expenses are more attractive per bottomed up better or a lot on for all retail partners long term.
As of March.
Net net for Pizza hut.
Okay.
At lower share.
Comparable quarters.
You bet.
Yeah.
D C P.
2 of the country.
Yes.
Going forward with E on.
Lower tier cities on broker.
On walking you find opportunities there.
But how about you sort of.
So they see that couldn't be shut down share count on that.
Finally share Yep Yep.
Sure.
True somebody check me if I'm on.
Oh, it's true.
How long do you see particularly true.
Tobey This is that news on India, just to let them there is too low.
Oh did you.
Cause on what you have to I'll go okay. So what's that starts on July <unk>.
You don't blow down on cut it yet.
Actually I was going to add younger children.
Just to stay on long Island, Oh man I thought that there will not pay it.
Yes, yes. It was on what's good for them to do they use on those.
I like it was sort of cooking channel.
As for overseas operation revenue was.
$441 8 per se.
5%.
On the border.
During the same period on the previous year.
Dear colleagues have multiple erupted however, during this quarter in many countries.
Yeah, there's 2 major step on the path to tempt them all day.
That's right in Southeast Asia.
And on balance.
Well now open the stores are concentrated.
Areas that country has continued has reported a new record.
Based on very high.
Adopting stricter keeps what matters.
End of March to some growth.
Oxford temporal items.
And then others are opposed to it all.
Okay.
Okay.
The Delta Index.
Oh.
[laughter] Jean glad it looks as well.
Susan I'm, putting up good she does it cause you to do that but if you don't count on it.
Yeah, we're sitting on tissue is still young.
I did talk about on early on even appreciate you started.
Good chance just to kind of let up on that day.
Crunchy change on a go to them.
She did it feel like that's it.
Group, a telephone and sometimes on older issue yes.
She buy on their friendship, which you can kind of do that closeness Russo either from channel.
I feel like our children.
So on pets on the DJ on here.
That's true.
Uh huh.
That doesn't mean that.
We have made encouraging progress in the overseas market expansion.
A number of overseas stores increased by 29 this quarter.
Cynthia.
The country demonstrates on overseas partners in confidence.
The long term.
The Bad News book was kicking me for all countries in the Middle East.
Well it depends on a good coffee expenses.
This increase has been well we opened 6 new stores during the quarter income.
On a racist minstrel Olympic sports score.
Paul.
Our second largest state Bhaskar.
Pascal, which goes with market force.
We have entered.
Could you show on Chinchillas show up at a 2 channel.
So it's truly their use of time.
Separately.
Well I mean, either chew on intuit's 10, being kind of on your country.
What kind of a push it puts you on your chance you've got on it.
But michelle from any source to provide global consumers with high quality on a lot to talk about that.
And this quarter, we're continuing to focus on flow.
Sure.
So I can see shelf, but they should not be touched on.
Thanks Brooks.
Because it had been kind of up on me on sushi and finally, finishing essentially on.
Paul why don't you can use the tenured on finishing symphony chats on Kimberly Glenn are you show the true general truly adopt or not.
Yeah well.
And you can eat children about Colombia, and some don't.
You bet.
She's on.
You too low.
Some uh huh.
The neat.
She leaves shoulder, where cookies are not really that isn't she didn't touch on the timing it depends on our family bankers.
First of all in per Doctor boundless.
We focus on specific new categories in this quarter in China, So, it's a strategic new categories such as toys.
The COVID-19.
Once a year on year.
But basically so it's on.
Toys.
Twofold.
Yes.
We could do it falls off more than 3 book.
Sales profit snacks were cop, 1 I'm drunk on for Chris.
So a good time to kit sales increased by 106.
Yeah.
Yeah, So most of the country.
You want me to do that.
She leads go together.
How do you look at what's out there.
That's true in terms of sugar.
Why now on to get it hurts them really well and put it on to meet its usual excuse me, but you really have.
Good on Tuesday.
He was on who's starting to true.
She leads which again it must be on towards the launch it on me as I'll call. It 10 day the chimney.
Secondly, we've kept innovating our business take all for vantage the fashion store as an example, it's still in a single day exceeded 10000, which is a revenue college or number of votes called retail store and provided us with COVID-19.
And the experience in expanding bandwidth growth in all the categories.
Trust me this new successful 2 policies in the near future.
Okay.
How do you say you shouldn't you get paid.
Buchi.
Charging G constant tool a simple on the 2.
Future don't flow.
Total expenses were kind of input here.
Thank you that would cause on downtown to book with it totally true E Mail, we and that's all true.
He was telling me Peter on the highlight here.
Good day.
Let me give you. Another example, during the pandemic, we proactively leverage innovative ways such as live streaming to distribute merchandise overseas partners.
That's been true to be quiet and socks and promote the use of recovery.
Yes.
Coupons and events in this quarter or January revenue renminbi 1.
115 million.
These cash flow chart ex U.
So what's your thought on Chi Chi Foon Chan.
<unk> group simple correct Peter.
Chase.
Chase you Amy.
Tony.
So they're shelving humidor emptying anytime on machine shop channel.
Uhm, Michelle Neal, who each any of that change would be new ex U.
If you look on.
Currently call on.
Jewish ex U.
So he is now if he's going to do that.
Tony how are you.
If you bundle Dewey chairman of Japan.
Third we strengthened our IP advantage by successfully launching products with new IV partners, such as chip on Dell.
Have a whole Fisher laughing at the beach.
During the quarter.
We have fully covered the major IP sectors, such as global trade and the IP.
A J I T.
Childhood traditional IP.
All told I T.
Balls and gaming IP.
And half sulfide minerals position as a leading player in the industry.
That time frame.
For me on cooler.
Who are you really shouldn't be children confuse you on again.
1 of them easily she going on here.
Got it.
Yeah.
Yeah.
So since you mentioned it.
Sure Joe no signs of it already with them separately and say lets us achieve what we're trying to on premise.
Sure it's true the pump as it comes on well that sounds good on somebody.
On the operational side, we have been dedicated to improving the efficiency on some interest goes by introducing information system and our tactics do everything that was years.
For example average number of employees per store in China dropped from 10, a few years ago to 6 in the last quarter on dropped further by nearly 10% during the quarter.
Factors to reduce the cost burden on our retail partners.
Really no net change at all to tap on sugar Keisha doesn't on now.
That's what you want.
On the ease of their pass it on to our 2 series or whatever.
Vision shall tricia.
This should add to that.
G suite.
She's going to talk to him for Leer, South Dakota, just to stay on course, you're fairly early geopolitically I forgot your son changing on that.
Finally syngas.
Joe on it anyway.
So you've got a team thought on that.
There was a G. You don't go from an annuity that'd be shown on CIT on this all the time be separated or still just hold on I missed the.
Sure Yeah, so yeah.
Yeah look we cant you didn't she has her family.
I wonder if she didn't she ultimately of what's going on to challenge the family friendly recently.
Yeah.
Minnesota, All made channel strategy continues to do well is.
Execute on a deal like this quarter, we continued to immigration and activating members through various ways such as per what part privately traffic on patients.
Such as coupons Wechat mini program to a group retention and with Chesapeake on day.
On March 31st members group had made at least 1 purchase during the past 12 months.
But it's important to an inquiry on 2 months sequentially.
Okay.
Well.
Thank you.
As a result of the above mentioned matchups rapid institution for online channel.
But that's not in those both are low.
Homeless keep sugar renminbi, 117, 1 or something.
What was the second person.
And O to O.
About.
17, again on a 3.1.
Matthew athletes.
Sure.
Couple of things definitely there timna.
So as I said, there's about a day.
These are on Sheila so called on.
And you said Gee, the Eagle Mountain Dew my.
I'm going to go ahead and kind of not just you've got hit with tariffs on that.
On the person to do it.
I had to Turkey, and Russia would that do on how do you sleep without until she don't hold on my side.
Switching to shop.
No I like to share more about top part.
As the first new business incubated on the actual strategy. This is top toy sports group quarter, we're continuing to see healthy trends in each aspect of its operation income.
And optimization in all places.
Now I'll make model expansion of product categories improved levels of omni channel strategies on the pulp to show results.
I T strategy.
These gentlemen.
Yeah. So TJ you can pay them.
I need to know what are your channel partners can get working without injury.
She was saying I forgot who it goes on it.
Maybe I will turn on fees.
You usually don't cut it is it so.
So no 1 would be if it wasn't being on wassa.
2 months.
It doesn't want me to you that took the crucial group on a callout.
Easy.
Yes.
It's easy to do.
B publicly.
Jesus don't get to your franchisee channel.
I'd like to jump back on just on converting that.
But first Dreamworks Tor top toy as being in operation for 5 months.
Our team has been with fundings business model. So far we have opened 4 more stores each on weak heart.
8 of the value opening performance bumpy, it's given us great confidence.
That's all creating more stores.
On the same time, we are also testing smaller storms tops out cash collections doors as well as flash doors on broker who your top toys operations.
Based on.
Jim will provide more office on last quarter's call.
Couple of holiday really gives a book can you pass on it.
I'm going to change or what color you could share.
Yeah, you can put on collapses on the pud, yet, but just on a.
Hey, Peter you net.
That said, the true well machine or something.
It's part of the fleet, so talking about the Etame share I think absolutely. So back to you Peter on going up that much in Egypt, which shows on the shoulder doesn't net.
She says she perfume simply that kind of coming on ethical as a kid I forgot to each other.
It's been down on the 2 young children.
Top toy is committed to building the worlds largest and most comprehensive Clarkson sharp on.
Poised to achieve day, that's been adopting a multiple couch with balance sheet to expand our addressable market with lots of choices, where I'll review some balance.
Simple consequences.
In this quarter, we added the sculptures.
H, possibly on top toy to enrich the product launch.
Dallas keep building Bob.
Assembly has gone down.
Well I think athletes favored by consumers during the quarter on.
Net revenue contributions continue to increase.
So far top floor has about 2005 I'm just asking you.
Chris brought on 1000 odd Hungary with golf.
Sure Don.
So on balance sheet your mutual attention on you talked on it different you can probably tell you forgot on as to who got.
Uh-huh low.
Chris The 1 time I can't go on nearly as low as you picked up.
You should know somebody on for each E L F.
Especially on a couple of all your true.
2 a share reaching accounts, where you actually talk about Pennsylvania.
So on the.
Let's see what would be kind of person Chamberlain.
Hi, Joe cash I believe Columbia on that.
I'm going to get it.
In terms of channels top toy has been building omni channel capabilities since day 1.
Today's covers it came in from China.
It's been spun off on I suppose Meanwhile, it plans to open a barber shops at the first overseas book within this year.
In terms of online channels has accumulated more than 300000 members in its region.
For each asset book that.
In addition on the Tmall flagship store in late April and will cooperate on E Commerce Jonny touched on dot com and so on.
More stores.
See you on a positive how about on either side.
So it's really critical that you didn't yet.
That is probably true.
So probably hold on.
So a piece of that.
Pizza totally.
Helium.
Hello, Andy.
Well, that's not good, particularly if it goes on.
Interest and when would you be that publicly.
You know balance deficit.
And he went on how it goes on.
On the Chipotle is that market.
So what's the idea you couldn't run them on any cause me you can chew gum and tell me, what you're what you're going to do.
So that probably tells you that.
Yes.
So you can change on acute sometimes I believe that she.
She is pretty simple that she's on corporate banking.
That's the cause that lived on temporary so you said to Joe actually income.
Yeah.
On April 28 top toy how does that mean branding event in Shanghai to introduce its pro Patria I can touch on 10, Cole Tommy and Lilly I'd like to take this opportunity to shop on Etsy.
Gotcha.
We estimate the percentage on top tourist products relative to self owned IP.
Through cooperation with hospitality.
And the other 70 persons relative third party IP.
Pro Patria, Timothy or Ikea because of its always Jonathan.
On.
On much easier to communicate to defense.
They have higher gross margin.
April was tough poised to be comparative advantages.
The focus on it.
Element top toy has cooperated with newly screened on good designer and supplier Congress, including talent seem to value as such as coal Yokoyama, Japan talk is on it.
Cause I mean on anything that kind of simple either lines on tenure.
On the fishy containment kept on regular Peter why don't you with Chrysler group.
Yeah.
Yeah.
She will come on or it gives you prove ourselves on the GT emotion empathy shoot up and keep on it.
So you can check on it.
Really what.
What are you can't use your shopping to book well I'm not on.
Sanjay you check on this.
Chris I shouldn't have been selling good balance or something on.
I spoke on 1 Germany chicken do you should be pretty similar to that.
Uh huh.
So did you get Congress.
It went up for growth.
The March quarter was mixed with book to calling out as a public company, we have theoretical extra.
Extra on making recoveries in the math day calls operations on the profitability as we continue to continue to focus on product innovation.
<unk> continues to achieve new milestones as we sharpened our business modal product selling channels.
Powertrain IP.
Looking forward into Q1, and so we'll continue to countries further into Chinese low tier cities by opening more stores and capture more greater market share in these high Oi region.
Meanwhile, we'll continue monitoring the pandemic recovering overseas Martha healthily.
Currently adopt all expansion plan as necessary.
Embraced it's Nick.
You sounded up on sugar.
Yeah, well, let you know.
Sure on that too.
Simple without people.
I will tell you.
This concludes my trauma business update I'll now turn the call true therefore for financial reasons.
Thank you.
Just on my remarks with a review.
On the March quarter on financial results, then provide additional color regarding the June call putting on.
There was a lot of our we will be referring to non ferrous matter, which exclude share based compensation expenses.
Got you.
2 without them with Henry <unk>, 9 million, representing a year over year increase over 37% in the quarter over quarter decreased 3%.
On a year over year increase the revenue was driven by the recovery of our domestic operations, which increased.
75 per cent to 1700 on the H 8 and meeting on B E.
Within our domestic operation.
Revenue over meaningful offline full.
1000, and a 5 handle on the 14th full media on be equally to 15, 9% year over year low.
I mean, your old E Commerce, well 171 meeting on the inquiries that 80% of yoga deal.
All of these market revenue declined by 28% year over year as compared with a decline on 51% year over year in the previous quarter.
The quarter over quarter on a decrease was mainly due to seasonality and the influence on the pandemic.
Our business is subject to stay.
They've been a little fluctuation typically with a strong performance in the thermal corridor that in March quarter. However.
However, we took a favorable effect even matter on cash as a launching more popular product for both the tail on the penetrating further into low tier cities in China in this quarter.
The decrease will decline over revenue was only 3% comparable on the sequential decline 11% in March quarter of 2019, which represented a normalized seasonality before pandemic.
Gross profit.
Well.
627 meeting on be increasing 19% year over year and decreased slightly quarter over quarter.
Gross margin was 28 points of 1% low.
In the past the whole quarter on the hour.
Greg on pandemic, showing a positive sign of our continued ability to recover.
Gross margin was.
32 point of full price and a year ago on the 28 zero per cent a quadrant.
As we have planned in locker program more fluctuation in gross margin low due to change in our revenue mix.
The year over year decrease was due to a decrease in revenue contribution from our more profitable overseas operation, which was 19.8 per cent or net revenue in this quarter as compared to 37.3 per day.
On a year ago.
The sequential increase in gross margin was mainly attributed to an increase in revenue contribution from our high margin online channel such as e-commerce and the old flow in this quarter. Despite the decrease in revenue contribution from our overseas operation, which 1.
Turnkey points of 1% on net revenue quadrangle.
Saturday and then distributing depending on what 217 5 meaning on the increase.
Increased 18% income year over year, but a decrease of 10% on quarter over quarter net.
Over here.
Increase was attributed to increased logistic expenses, which was in line with the recovery of our business during this quarter.
The increase on marketing marketing expenses.
We continue to strength.
Blended with Indonesia for meaningful and hopefully.
The quarter over quarter decrease was primarily due to the decrease in marketing related.
It depends and pushing to elevate entity is panic attacks on the payroll and payroll expenses.
Bye thank anatomy.
G&A expenses well.
And the 15th day than many on the increase.
Increased 29% year over year.
And the flat quarter over quarter.
The year over year increase was primarily due to increases in pushing their 90 day gets pants and it is pending.
We took measures to reduce G and H dependent Vander Kooi 19 pandemic broke out during the time period over the 2020.
<unk> has an opinion volume.
Related to day, just hang on I E.
A low comparison base fully leased it is pending.
Turning to our profitability.
Breaking profit.
161, many of them be increased by.
So we both year over year on a twofold.
Oh, well cover the year over year improvement net operating profit was primarily due to our ability to recover in China.
While the quarter over quarter improvement was due to the deep action E operating EBITDA and and although net income or loss, which was our lowest opened 55, meaning on beating the previous quarter and income on a.
Meaning I'm B E quarter.
Yeah.
Adjusted net profit.
149 million RMB increased by 10 percentage year over year, and 77% quarter over quarter.
Adjusted net margin was 6 point to 7%.
The hiking in the path of full quarters since the outbreak on pandemic compared to about 8 point of 3% a year ago, and a 3 point to 7% a quarter ago.
Basic and diluted earnings from continuing operations at yet.
Well so far.
37, compared to 76, the thing a year ago, and 8 cents a quarter ago.
Talk to your basic on the diluted earning per ideas.
H T true spend on B compared to 48 volt ends on B, a year ago, and 28 cents on the corner.
Yeah.
Turning to our balance sheet as on March 10, a 'twenty 1 low combined our balance over the company's cash cash equivalent with pre COVID-19 as cash and other investments.
On billing on the comparator with fig pulling to non beating our product growth.
The increase was primarily due to the cash flow generated from the operation.
Turning to working capital net hung on.
Inventories and trade receivable remained flat sequentially.
Looking ahead into the June quarter over 2021 we expect our total revenue to be between 2 partners III, beating on B and a 2 point defined feeling on B, which is representing.
On the whole P, 8% to 61% year over year.
As we continue operating at a time over significant uncertainty in regards on the timetable on the pandemic on recovery in our overseas market, we remain cautious in our sales almost ANZ market.
However, we are encouraged by our efficient working capital management steady recovery over gross margin disciplined investment and it depends on the new been they've overreached has made a solid foundation for us to believe we'll kick this thing strong.
Strong financial performance on the long term shareholder value.
This concludes our prepared remarks, both the day operator, we are now ready to take questions.
Thank you we will now begin the question and answer session.
That's a good question you May Press Star then 1 on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing on the keys to withdraw your question. Please press Star then 2.
This time, we will pause momentarily to assemble our roster.
Our first question is from Michelle Chang from Goldman Sachs. Please go ahead.
Oh, yes on sounds on each of them on your behalf.
Oh, well she calls sometimes on the Michelle.
Volume Psycho Bunny.
Got it yes, no I think I should just have you have them to be on average it wont mentioned on your passion for guessing yourself and tax strategy now after that Ghansham bona Fide on track how Paul Yeah, No I didn't know that they got on cash flow, but I just I think she how can they go on.
Yeah, No that's what you picked on.
On top of Horus entered the effect.
A couple of times on my sympathy and take.
I know that you want to beat on them.
No I can't but want to issue.
So you'd be end of Wow, how long of a phone like eating into the accounts.
If you don't mind natural level of $10 per that's helpful. On anti Dan should pick up on the shelf now Oh gosh, if I go on pensions actually.
Cash on the couch on Clos.
That is true.
No not the kind of once you see on me to tell you that you can walk on it that's 1 of the day you can't change it.
He was on value team Yoki you'll.
Sometimes the Ultrashape our message about how they.
Monday on T cells.
Hum how long is that going on to that I think I believe interest rates, you've always yet tranches on Monday, and I thought guys with a G I need a strong Pos should come on yeah Nah.
Just go to that young woman.
That's about it he can use it to finance you don't can't attack.
Now I'll finish up on the kind of went on.
Not that we can actually if I have a quick question for management, that's a lot on Aesop the company introduced a new retail platform ex strategy and we successfully developed on a couple points. So can management share our thoughts about our future development and also pacifico actually come down off on top 20 balance sheet.
Second question is about the overseas.
So on the 1 time, we control the inventory and also the expansion.
Uh huh.
Likely deal with overseas distributors on financial situation and.
Our business environment, and how this will impact all of its banking.
And so that you called out on I think there's needs on a we have been spending aggressively on what he yesterday and Ah. Okay. On can you share weight loss on for those stores opened in the past few quarters.
Pension on our situation and also on how do we see that based on these opportunities and you know what he has he keeps moving forward. Thank you.
Okay.
On a long.
So they are women.
The public already said is true.
Well it really hasn't Bureau took on that.
2 minutes.
We are holding on the coupon on them until they are chip.
Okay.
Your acuity that you're moving forward.
But without that.
Okay, Michele and thank him for a cross channel for your first question on abstract.
Rajiv.
Right.
No category is about.
I'm surprised I guess pre COVID-19.
Interest expense I'm, just not ready.
Actual.
No.
Some kind of profit.
[noise] earthquake.
[noise] or whatever.
However, free cash.
I can't count on that.
But you can't book, even Chipotle on the ACA.
And on 1 until there's more true content.
Sure sure sure.
If you go call on them.
Cash at Oxford House, because if you look to contact channel about 2 times a true religion.
Actually I've got cash without that he's on people really got more she bluish on pretty bullish on Taiwan, but you're not adding on to that Amit or if they don't treat them well, maybe you can pass that he's a true.
Telling each other group.
I'm, not saying you can reduce nox and younger people come on.
I'm wondering Stuart you mentioned on triggers are borderline true comps.
That's true.
How much of your Hydrogel then Tina.
A lot of that is on time in Wuxi uncle harder down year on how did that you'd be chocolate climbed during the day.
Amit tutors order if they don't get on.
So you say problems.
Okay.
Darren on sort of eating out yesterday, he was dealt with any commentary on guidance.
Hang on in chicken I think their furniture with Doctor on a 2 times to contact me.
She was trying to lease the accumulative dispute.
So you don't have anybody selling a couple of Io book.
It's all of that accounts for the country.
From Green.
I'm on I believe you sound on you from where you go.
How much of anything you wish all day.
Well, Yeah, you do have you what.
That's about 1 man I'm sure all of them on everything to do with how can I forget Nox.
<unk> Commission that you'll kind of be what else I know I didn't mention.
And so on how you work on the potholes on the ship.
That's on carrying out really children's hospital channel.
All parties and drinking water.
On the overseas.
Moving on line items.
What's on a lineup that you on your on the true what I actually kind of a challenge of course is split that you do when it comes on extra tonnage on a yield pop.
Well on actual view and it's all day.
So you cannot necessarily be cool.
Supernatural children between your net.
I would tell you at all even finding mitigate on inventory.
So you just can't imagine it up on Boulevard in Shanghai cut on commentary if you hit on it.
I commented on that issue to sequencing.
On the show an injury of the pilots what he didn't even tell us on that some people look out on me the well maybe I'll take the thinking that you can really count on routinely.
But he Michigan.
Okay.
We're seeing team channel Hot weather day, Buffalo, we've always kind of keep me honest, but <unk> I think that says hey, I'm going to do that.
Can you give some kind of you feel like you know again the low point.
Good day, she was immediately right.
Yeah, what I paid harvest season.
Yes.
Okay Michele for your second question.
For the overseas.
Depression and needs to be analyzed by cases.
No.
More than a.
Between our comfort zone.
And in terms of Oxford distributors, the top 10 as group users accounts for more than 60 per Se Overstates force so concentrated there.
I'm sorry at Stifel.
No.
But the big distributors.
Bill on behalf.
Yeah, absolutely I'm comfortable at this moment.
Outside the very strong cash on cash position and shareholder on structure.
Cost control and a better mix.
So our adjustment to the staff there.
No big risk for us.
These are big distributors.
The smaller ones are absolutely some of their growth.
A real growth.
Our speaker.
And as Michelle said before that we now have.
Distributors in this market.
Uh huh.
Certain distributors financial group photograph knock on wood.
Big picture, all 6 markets and if you look at.
The past 4 quarters performance.
No matter in our revenue or net.
Net income.
The most difficult day.
Hi, Patrick.
Sure.
And.
You bet.
Come on.
A couple of overseas markets.
Distributors are ex that.
The outpatient.
Pension such as East coast, Katragadda, which would be kind of enter during their first for our second best.
That's true and Oh for example on staff.
This country a long path okay.
Fourth and first quarter growth.
The as reported.
Yes.
So that piece I want you to buy your stock today.
Of course, as you can see them, which are meaningful pushout industry on the day, we're trying to fix even if at all.
So you're going to maybe unusual immediate overtime. The extra day short term interest rate all you have feet on too.
Comprehensive or a year ago.
And I'm afraid zone.
Sort of a meaningful part of it that goes on.
You can count on.
Good idea on the on Colombia.
Colombia, and she could order it somehow.
The door triple Nintendo shots on that.
Net didn't know if you kind of true content good top industry on I think it really.
On your feet on balance.
John B look on what they think they're thinking on each other to share, but what she on chico's already on that but won't have any channel lithium are meaningfully hitting on some good team, who can do or that youre comfortable with him.
I'm on either jewelry growth.
On each and will go.
She was Chicago, Romania picked up momentum as we Shouldnt you suddenly you shouldn't you believe it's tricky.
It can be shocking to bother get him on.
Not true you take a shot on initiative on the Daniel listen when she was unfortunately, he handled on young women and their true onetime seafood tricky on ways, where you believe the Liza 2 of your top EMEA lets you finish or somebody like a ton on new essentials, the Gulf being on how can we get on your Oklahoma Union on matters.
On Toyota and I, just have a significant beat on the E band over that that had been driven by unit can weigh a bit on that.
Are you actually paying for me on to your children living with Yamaha and the day, we bought her feet on stay at home whats going on share.
Once we hang on 100 deal closure obligations reveal with what's on the Cleveland and you know what you're going to hit in.
Due to the meaningful value for you.
On top because of COVID-19.
I can't know that culture.
You should have paid on the <unk>.
And I'll come on or do you worry that we dealt with.
You can't get on currency of June July.
So you've repeated on it.
Okay.
Yeah.
Okay.
So questions.
Low touch it hits.
First of all rethink on a minute source product and our business model.
Comparatively lower tier cities.
As mentioned.
Adjusted now.
The key operating metrics gotcha.
Average net price that's about right.
Perfect.
Average sticker.
Sure.
Okay.
Interest in terms of addressable market.
That's worth a day.
Hum.
That's 3 countries because they're trying to work.
Yes.
Tier 3 anchored off because you can book.
207 more in China.
Sure.
Yeah.
And in China.
The addressable market.
Okay.
And tricks on you read.
We have been.
Continuous in Baltimore.
Yeah.
At the recent tax reform.
Yeah.
Okay.
Our revenue.
That's right.
Yeah.
A typical growth.
They all generate a surplus.
First in Q4.
Norway and the rent control proposals.
Okay.
8%.
On sales.
Back to carry on.
Sure I'll pass on.
The fixed income market.
They've allowed us to absorb.
Especially true.
Okay.
Sure.
Yes.
Thanks.
Yes.
The next question is from Lucy use from Bank of America. Please go ahead.
Uh huh.
Let's see what do you guys sell them on geology.
If you come on up on our New York without you don't put J GAAP.
Uh huh.
Uh huh.
So a number of them back on 1 thing to watch out much more detail for you on the basketball that's also true.
Yeah, well I know on my whether it's logical cleanup on yes.
Got it and she has a balance of harsh.
It will be cancelled and you talked about you sound like you're going to do.
Yeah sure.
Yeah. Thank you.
Uh Huh right did that go through so.
So I think that's it.
On the Neal are you going to shop, I guess I'm gonna shall it's like a true well just yoghurt once a.
Do you price your plans each of the top 20 again.
But that's on like how does it play.
Please see what puts it all day.
Yeah.
Japan kind of ex time again on shouldn't that way today, you've got cash out for T. You mentioned, no, but I'm talking about Sunshine cash again.
And I went on.
What's your findings on defense.
First question on the farm membership. So we have about 2 minutes my books for a while so what we have done on big data.
And now how are we going to small utilized its laid out to help with our operations on a second question is about there.
G M D.
In China in the overseas market.
At the bank and how should we think about the.
How 'bout projection for the second half.
So question is about top toy so what's there I thought opening plan for this year as far as more Oh forget matrix. Thank you.
Okay.
That's true.
Davidson.
I'm on the move.
You have to send them on Australia.
Well, yeah, well yesterday on the Sunshine in asthma.
I'm not talking about on haven't.
John on how you're gonna do isn't syngenta to comment on that.
I'm on to go to there.
Do you believe in.
The shut in but you do well on pace.
We're moving.
And that's too low.
It could end up cautiousness.
I'm.
I'm not familiar with it could end on this is a question for you.
Good day, they're gonna frankly on that so you're dealing with.
So go to net minimum.
Really isn't that I don't want maintenance since he's on C.
With me on.
On that catch on.
We're not completely on the U S.
Just on what Luke Chen.
Founded on 2 of them.
On it.
So what does all that up with 1 just wanted to test it on cleanliness.
So you kind of on so hopefully I'm, giving you on the back of a hybrid on calling on them.
On balance sheet.
Yep.
According to the day.
Indiana for Yamana to women do not put anything on Kona.
On the Egypt.
Oh I see.
And of course, a union on yet, but within about a candidate.
Indeed, all eyes on them.
Download to rule on this 1.
So now you can put on Congress, if you're choosing to continue on.
All questions.
On <unk>.
Buffalo Ctrip comfort on the hub and Cheetah on.
I'm glad you brought up and comes out with your return on <unk> totally cheap so I think he's on them.
2 quick ones here, there's some interest you got anything you can hold true, which you could do 2 channel GBP 10 million on.
I can't do it.
What type of thing on which I need a lot and so you cannot cheat.
I E.
But you can pick up what they cannot do it yourself bumping a little hard to say, what's that doing keto Hajime Jimmy so that she can come on come on you, but then he himself.
Hopefully later on.
Generally it leads to them anyway, so hopefully apathy geographies yourself wish on something.
Do you see what's going on how that.
To put operating entre and he said I won't mention that you got to be done.
So the lateral 1 being that hopefully you all on to put it on the catastrophe.
Okay. Thank you for a passion.
Oil patch on a member as free showers that buys.
And all this quarter and we have accumulated.
To that group and rehab using various we used to do outreach and activate the attack COVID-19 I think.
So.
We had happened on their speakers to shell interest average sale price.
You see our members as well double that number efforts and in terms of the purchased reasons.
Non.
Ordinary.
Customers on.
So on.
Average day.
Yeah.
Based on.
They come and come and buy for block 5 times each year vs. 3 times net.
Yeah.
As the value added that we have realized.
14th roadmap member.
Our.
So.
They can also important.
Our members are things improving share within the past year book, we'll.
Make more accurate to conclude that.
So uh huh.
Uh huh.
We are happy about it and keep our members peak rates.
Probably.
So that cash.
Carried out with more targeted marketing to our outreach.
And if it creates value.
Repurchase range.
Becker.
Okay.
Uh huh.
So the claims on the cathedral.
Oh yeah.
Cool.
You'll find out at some point.
Cannot elaborate what's your take on Dana.
First on wheels on some day without much Archie and Chuck E cheese young women.
Volume in Soho, which is our feet on.
It's worth it.
Pfizer concluded more than I was on so again it was.
All right cool Dolby Eastland group.
What's going on with me if I cannot give her new book is they've got cheaper on a per hole mobile data group order pattern.
And sat down with them.
I know that the region to chat E channel.
I'm not sure it's easy to teach it back into.
The balance sheet total guys on that jockey focus on solving totals even talked on thanks for the call.
You'll have to know critical about that that resources are critical enablers of growth.
But what do you measure it by area in North Africa.
I have gone with on getting essentially the golden with someone.
So that's all true.
Yeah, that's what I used to dig in on.
She's on 1 particular highlight that due to some lumpy kind of thing all of them on Mcdonald's I think on earnings.
So I think on Tycho momentum cohort.
Yeah true.
Yes.
Those are the economics of interest the angles on that because we all come together.
Yeah. So let me go away it will be.
It shouldn't be.
With you on.
With that money.
Okay.
Let me equal average.
That's how long is that okay.
Joining me on this challenge.
1 8.
I forgot how it's going to be cheaper.
Sure per view of their normal day, but from a number of abandoned about what's really going on.
I hope that when we get turned on to shopping with you on net that juncture I am wondering if he wants to book.
To repeat on a stable.
Yes.
Yeah on television.
Not what Dino said, we're trying to do for the.
The other thing about E book.
Just on looks a whole number of vehicles, we can be done in Houston and you don't need to know what are your book.
Cyclical I had all kinds of Eagle.
No doubt.
So I look like at least maybe even sooner.
He also was on Bureau woman.
Father clients on diesel.
You have seen in each and see him even though it holistically on them.
Yeah.
Sure that would pay out going on.
Do we see a farther out without having to give me all true.
So that will be all cash deal or some people who have done any work on them.
Yeah, I'm, sorry, I didn't make the time to revenue.
Sure.
Thank you.
Quick uptake.
Our fitness tracker.
Okay.
April and May we have 2 public holidays in China. So we can see very strong sales increases during the holidays.
But after the holidays and weekends quake.
Right.
That's catching on.
That's still true.
That's true.
And I think once we get ourselves so the overall recovery.
Sure.
That's 5 percentage or so.
With this market.
Yes.
Got it.
The end of last months by April.
The market as a whole.
It's a bit worse than before.
Uh huh.
Angela March.
We each have more than 3 times or sports book capital E shop Donaldson com.
Victor a coffee kind of flow flashers actually sort of matches.
Countries and affordability index.
For those stores in business the written copper zone.
They can.
Page was lower 5 per cent slower.
Yeah.
In the last month.
If you look at the second half of this year.
We see stable growth.
And then a staple recalibration.
At this age and older.
And as the pandemic recovery for overseas market is still weak.
For example, in India, where we have 1 popular day 15.
Force.
Now Mike.
The non OPEC.
And therefore, some developed countries such as the U S.
Rocky.
Action.
<unk> injection.
Price.
We actually true.
Net sales channel.
No that would not have.
Net surface doors.
So the influence it.
Both.
This market.
So you feel like you've come on here regarding public close you can find on the coupon on this account.
She was a terrible timber that we got on.
Sue them in EMEA, who it could be a thought you would be on a lot moving around neutropenia and potential.
That's on the Eagle EBITDA, while he is at all on.
We cannot comment on in there.
So maybe on that I wish it was EBITDA.
And at that time it was on the number of the Canadian Cacoethics adopt cut relative to answer yeah.
Hi, Tal down on what it means you don't win on this.
Not yet.
Yeah, Glenda moving somebody on that long cycle.
What's the 1 time items on that you can call on.
So the BD I know you.
The only thing with harmony.
I've actually been you on timing, even thought about what that looks like going on.
Same thing on doing some on some clients on 2 pads.
Tom on that'd be the you have to pay it off and on tell me about.
The biology that boxes are cheaper and supports the kind of EBITDA on the health and Philadelphia and Chicago.
You could almost on a Sunday.
Okay.
Okay.
And I go on to them.
Okay.
Top toy.
In terms of the expansion plans, we have no big change.
A lot of uptake.
<unk> maintained our guidance.
90 to 100 stores by year that calendar year.
In terms of low.
Economic model.
It is continuously declining.
I want to show a group.
Our dream bookstores.
Our triple net.
Thanks, Phil.
<unk> has been quite stable and a 2 day on that.
Mike.
And we are also testing a type C stores.
Rich.
So our monthly sales.
They both at 600 profit per month.
In terms of the retail partners.
Also on Howard a quite a bit.
Uh huh.
I'll show on our retail partners at 5 a M.
At the end on April and we saw flow readiness of our retail partners to open up on top tourist doors.
Good day.
On pulp cases this is.
Bad and acquired proposal on the fact that proposal.
Yeah.
There are no more questions in the queue. This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Okay.
Okay.
Thank you again for joining us today.
Any questions.
Please feel free to contact me.
Our team and our contact information can be found competition, perhaps relief.
You'll see the next quarter.
Good day.
Okay.
On the conference is now concluded on thank you for attending today's presentation you may now disconnect.
Yeah.
Right.
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Yeah.
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Yeah.
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Okay.
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