Q1 2021 Fangdd Network Group Ltd Earnings Call

[music].

Ladies and gentlemen, thank you for standing by and welcome to Franco to Network Group Limited first quarter 2021 earnings call. At this time all participants are in a listen only mode. After the management's prepared remarks, we will have a question and answer session.

Please note that this event is being recorded now like to hand, the conference over to your speaker host today Ms. Linda Li the company's director of capital markets. Thank you. Please go ahead Linda thank.

Thank you operator, Hello, everyone and thank you for Oh Joy all join US on today's call. The company has announced its fourth quarter can you can do what.

Our national adopt a day.

Are you where it is it's not available on the Companys IR website. Today, you will hear from our coffee on Mr. Dumke, who will start our call with an overview of the current industry dynamics and the details on our development strategies in the quarter afterwards, our CFO Mr. Peng younger on will go all over it.

Actual financials before we open up the call for questions on <unk>.

And his team will do their work.

In Chinese and I will provide the English translation.

We continue we would like to refer you to our safe Harbor statement on our earnings call release earnings Press release. Please apply to this call as a way will be making forward looking statements. Please also note that we will discuss non-GAAP measure of state.

Which are more thoroughly explained and reconciled to the most comparable measures reported under the generally accepted accounting principles in our earnings release and filings with SEC.

With that I will now turn the call over to our coffee on Mr. Don't see please go ahead Sir.

[noise] bugger off tissue claim that all on little early our Union did you do the deal on a quick tour.

Well Michelle feet on shop, or Union D G to them kind of the whole year.

D from Vienna coupons on agree more dry dockings here, we'd see zone.

Sunday off on Sharon she doesn't have us on trade show called Ultra D E Shaw too hard on the knee binge on the country.

God only cheetos Patricia is already on.

Yeah sure. So celgene found ourselves would be more of that on a.

Yeah, so on a yet.

Good things on the balance your balance sheet.

Cumulus is on grew more G box agenda, so I'm already.

So this is Jos Carlos on the shelves on move out change on new.

It seems really driving just you didn't bother them.

And then Paul just like all the telco that's industrial team.

On the Green Motors, which help with you.

Sure Charles on Dalton Tianjin celebrities in China.

It goes on to one quick thing judge on this too.

In short Johan neither channel so people chocolate tools on sugar.

[noise] tariff on manner.

Sunshine known she's on the Centaur thoughts on Colorado near a new question, which I don't.

When you shop in each other's in bunch of food by Tau finish up on job two is to your question Tanya.

Linda So Jean Casner early on in yen.

Tom on your that's into U N D wave filings into their balance totally shut down charge on yes. It will go back and <expletive> on here.

As you saw Joan.

Harding you on yeah, you'd either treat usually pain are you.

If you do good job Sunshine boats will kind of continue on she's on center G Board.

So you don't let Lee Jagoda assumption N GT cars is Patricia.

Net she did.

Junk homes instead of toward each other each audience.

We chose on Saddam's our suites sunk.

Total non Geneva, you pulled on a shop on proteins have been put on it sounds simple design the THR totally on E. G zoom phone she though.

So you either put on things on a busy Chuck talked about on T shirt jumping official free tonnage on mute.

Decided yet.

On your diet Chi Chi mutual trenching cohort coaching I suppose of Holland, new mutual on kind of off so on daily food placed on tolls sorts of hard time, yes, it who we are so new.

She is a funny time time, yeah, my mom to yours announced that plenty of time to do it on juice when cutoff on debt.

Judge on Honda just hanging in Florida on June so do it youll find Hitachi it pushes home cause you to phones to the kind of almost at Gibson.

And as usual how're you doing a flow Moshe.

Oh, you mean, the crush industry G suite to holiday.

She was on sheet piece won't be Leann change on cool Nobody's on.

Jane So neither she was with her father on so machine.

So sundar spoke of Hudson type.

He said if I'm in.

Who seem to have your attention to herself on sometime the.

First off on the human gene called since they're finishing you things like anything you would oney to agenda items.

Sure.

Turning off anytime since on production. So you had on your daughter tenure, so the two year old ours.

Theres a bunch of that.

Hi, Troy tons on yard the Teradata on ship already our linear ourselves on and tell you what I thought you did a.

Yeah, Doug Chiang royalties on the five interest.

There are.

So for those who need that all on pipe and Jordan XI Yeah on golf E triangle convincingly pinned up average ETF.

Yeah, Oh, Yeah, Duke Greenleaf G HN go deep.

When we go on to at all.

And sometimes you on trees on support us on how you're right 19, collinsville nimble, but also voluntarily.

Those tend to hold on triangle attention here.

I haven't even told you on the telephones out each year.

Uh huh.

Change will treat other union two tenths of finishing the only Colombia.

Okay.

Are there already and yet you're doing on.

Bundled so she was at all you've got machine type Spangled cause here with the 10 Newport cheap.

Home cooks entirely at all changed on you you fool ourselves with all channel enjoy more certainty.

On you you couldn't chindamo on cheese tolling agenda.

Since her anymore. So of course, we're teaching she shot up with you.

So as you know on Jesus always shot so I'm, hoping that some of you know well before that.

So on little seems you saw on hoping China chances of Chi Fong do what he could you full industrial machine Sushi at home book changes on put us on at the time she enjoy it feels on hot Nielsen co op food on Ts on time in the sooner and she did you do Pinto Hoya that didn't you then.

Our Guardian you on some b already Harley Tobi already on it already near and Dear to do things on their balance either.

So it sounds like you found me on icon.

So you see involvement to violence Angel you Wanna.

You won't see most of the tissue to shop zoomed in on Zhengzhou Guangzhou line.

Neither neither goes yet.

So on the team to do so so without whom go down you might be on Danielle bundle, but we won't do it they didnt Daniel.

Pinta zone called the appeal on she won't yet your thought on the D E Shaw thoughts about peanuts, so when will the shutdown on the woman tone.

Yeah, you're on Cui, Canada, Bullshit, Eugene a ddos on niche in their childhood coffee <unk> tea on your own.

Killed ecosystem Gen common agenda father.

D. G. Do well then you found me N G G to walk.

Cleaner in June on the losing that hurdle.

Tulsa, Josh on the P&I finish out our food E. Charlotte G, Joe Julio Fortuna and shovel Tradeshow.

Can you tell you about either your Sheldon zone.

Now D that you're doing a momentum you.

You go force, you've only channel Shamble way you change your basis, you got Susannah Finch oscillator.

So Susannah pinch also our day in children.

Yeah from it.

Foundry in South you're seeing.

So you can carve out that was supposed to how each other show well then following you want an on time in Sunshine sourcing.

So it's a day something close to that and I believe she doesn't know Joel do you choose on Oh Man you found me and put on by more Cynthia Timesheet, New I phone minute trade on that.

Tony and congrats on the city on control.

Following on your thoughts of yellow jumped out there or do you do case attention. So.

So you've got you're doing on.

Tony Stoss assumption a madea, it's an intriguing downcourt on hot shows really how long debt go you show on the phone coach with adhesion doesn't change and Goldman bound to on time. She also type.

Pete on price, which you don't see interest uncle posa towards C and shall boundary here on both on the hands of the funding.

Just to give us on thoughts it simple like shipping or Cook No hand, you get a sense and we are sitting on your own quotation compound than debt volume.

Volume so she trade union.

Hi, it's only on have us on sheets on some visuals the city on control tens of D. T. Do finally E G.

That's our job by a chunk of us on change of control Volkov people, Yeah, and one club non trunk knee deep fully then ISR sensors 10 cents tense you get.

Does that flow.

And so I also have on you if I'm in a bundle.

Gee, it's only seen the U G. Also she used to Tom's question on father D. G. Due course hours of them B Y on G. M E biosensor with their new event Toby early early on D. G to within zone, five and deposit eat in a box.

Yeah, and free cash flow on our Hungarian engender coaching job on them or soon.

T O Julio Caitriona ours will bounce and John tell you that tends to Cushing.

She most of it.

Green shoot a question on the father did you do ourself on here, we're sort of way you can buy by paucity of Bob I am on B, then done by Vinci bypass on Sunday.

P. G argued or so Johnson J on close what's been done and you've got Hudson.

Did you do on a venture you you saw on high rates on machine chunk or George I'll move on then whereby we will go full gala, which anybody in this channel in Boston do go out and do them.

<unk> is the only thing you said.

Do you go for on that way you change, so bad, especially ijaz woman debt Tivo on that show you're hopeful.

So it'd be easy it on a T K.

Hi, This is Joe Fortunato, great margins on cheap.

Yeah. So so it's a toggle on or will that line did you do.

On taught US is how you got it.

I got a piping Xu with ours.

Farhan.

She and her time, she also the Doe, Chile, Oh, sorry on him.

This is the time density Cordiality, Charlotte, Michigan, Colorado Hung your time charter free team.

Okay.

She is on you will put your the teaching the lineage teacher Georgetown's inside Golar LNG.

Did you do say, a 10 day Cynthia from it.

First of all it was on huh.

Go on yet.

Sure so on phones and that's what she will tell you on a change then you go to your food on titles infant childhood cancer.

And so you will notice was on champion.

Chamness puts us on little ourself on G. Shanghai, Chongqing U sleep Altria hook, you up on quota Joshua Tracy's ourself on a father.

So I assume on your Overdog, who search engines on them in a deal with children, who are usually the Nanjing sensors on Geneva, So I assume on us is huh.

Quite as what was supposed to be an opinion shop channel Halle and then try to treat are sufficient.

[noise] Joan on when I finish on the shop on it all day rate at a time line you cheap DRG doing that on little sheep.

<unk> father and show you.

John So she had homework time machine default so on that show them with that.

Combined the infomercial that she's Angelique Schild Egyptian tighter monetary policy over dinner father, you judge it all she involved day to tell you so John debt and indeed Sundance C and Susan maybe send it to you and to Jim.

She and volume foundry in South you have a zone that's on a jewel here with her and she.

Well, maybe just touch on that would suggest you sound a pet.

What's the day, you sound like how far down.

So on Shannon.

Sorry for the Union for tissue.

It's only on cause I sound a little chat on.

Pinch it day survival change Hudson's.

Hold on to your children.

Usually judge it on a saucer or young cases time central.

So here's what I'll tell them in.

So long you know what you're on funeral you got things on cash.

It's usually got turned on our balance sheet Mindy on Grandma E. B line that you make those youngsters Hinton job did you judge it all ourselves on year with a total.

John So.

So the channel on civil challenge of Jim.

Oh, they are Union judge you do well.

Or maybe she goes it's N T S O.

<unk>, let me be sending them by year end, just maybe just sitting on are you going to do yet. So you use to use her if on you know well this is Tom.

Jean Charles on the attention of Triple Gandhian, because you go on there and you couldn't I would ask why fashion game Park.

So how does the channel, which I mean your channel.

So she's telling quarantine generally so that's on Jay Shah and she's with us held gotcha.

Hello, everyone and welcome to our first quarter 2021 on this call I would like to start off the call with a rigorous review of the real estate.

Market on the corner, so everything we observed a series of changes and opportunities.

The scale of the new construction properties is massive and has maintained its growth under the guidelines of debt three right line policy real estate day bypass on income.

<unk> focus on improving their.

10 of our rates and utilizing various channel to reduce inventories.

Inventories are critical to the National Bureau.

Statistics, the scale of China's or commercial housing south south raged.

17, pornstar trading RMB 2025.

By eight 7% year over year.

Meanwhile, scale up in new construction property market continues to grow.

On the topic or outright or average south in 'twenty or 'twenty. One is an island at 5%. According to a group of 44 developers, which is still quite a high level.

Under the guidelines of the three lines policy developers our focus real focus.

More on enhancing their ability to navigate the various marketing channels in order to reduce the argument to rates and the products not right on a salary, yes, 10 number right.

Second the regulations, you implemented low friction purchase restricted.

And the south restrictions Asheville, and centralize the line itself, which had an attitude of Brad Pitt declining developers' profit margins as a result give out of Paris home demands now could alone easily on marketing expenses and reducing reliance on distribution China was.

According to the Windows.

The real estate industry, although net profit margins in 2020, it was nine 5% down by one point not a full nine percentage points.

0.2, the triangular at KBR. Meanwhile, the industry's net profit margin continued to decline into the 'twenty two rich its lowest level since 2015.

It was a deal with day in the first quarter the minister.

On a neutral on the sort of stent on Atlanta field on line supplier has continued to drive top line price According to Kenny bid.

At the monitor the city the Premier premium rate of the line transaction jumped to over 5% in April 'twenty, one against the backdrop of the timing net profit margin increasing line coasts under rising rates in the.

Dallas Channel for new construction prototypes, they matter price increase will need between improved efficiencies, while reducing our costs.

Goodbye depressed activity trying to transform their business models from real estate development to real estate services now accomplish their laptops I focus on our strength.

On my station.

Relative to Wow, how Richard.

Cut waiting now on most synergies ended they read the tape in.

The average post services.

On the nature of the real if there isn't that price interest around appropriately inventory.

The profit drops.

Other real estate companies are shifting from property development and the sales to assets operations and services.

This conviction this transition requires a real estate company to transform and yacht traditionally looked at government businesses into a more rich.

We find it on.

Oriented model and that's to go differently, depending on their companies.

Digitization capabilities.

Called real its real estate companies, such as country garden seats in holding and local properties.

Have all set attitude towards the bathroom and center to build their own digital ecosystem force.

In the US South property markets of the first and second Tier City Commission based on its stated renovation businesses are starting to mature and it.

Generates consistent profit.

And China's real estate market continues to mature with cell prototypes transactions will become the main growth driver driver for real estate marketing and you're crazy number of stages for example, and the order of magnitude. He is young theory about the downtown Shanghai, Israel is now permitted transaction volume.

One on two of trading RMB in 'twenty 'twenty accounting for 16, 5% of the country's total red cell cryptic transaction volume don't have to sell properties.

Stipulations rate was two 7%, which was also much higher than the national average of one 1% is that Shanghai ranked first in the country in trouble on the market volume and transaction activity in 'twenty or 'twenty.

Also on the down three on what the outcome region, Nanjing, Hangzhou and move on among China's top 10 stages in Trump's otherwise sell property transactions in 'twenty or 'twenty.

With Shanghai as it should be ready on survey about downtown reagents yourself property market has shown in men.

So for the future growth of a convention based and China renovation businesses.

First quarter of a turn it into what we reminded committed to our growth strategy and that's continued to focus on the day might comment on our platform and its three businesses right now.

Average on our platform, we successfully upgraded our new construction property business to provide it really is the bad price with stupid superior services.

Meanwhile, by utilizing our technology enabled a friendship.

System, we also accelerated the offline expansion on our red cell protein business.

We remain focused on providing on open you're dependent on technology enables the platform to our patent on the agencies, we're offering a complete process standardization just solution to enhance sickness.

In the first quarter, we had 221000 active agents on our platform by one 2% from the first quarter of 2020 during the pandemic.

But for our new transaction property itself price business, what does it mean flow remained the focus on utilizing our asset light model to improve average.

Pension fees and the profit abilities.

Currently our commodity times, I booth keenly on color and flexible and mainly due to use of.

Otherwise commission payments. However, we have chosen not to use on found full on.

Ross Commission payment this decision impacts the number of active agents on our platform as well as our close just routine checks and poverty transaction volume.

Volume, leading to a direct declining our new transaction property revenue grew up for in in time. Nevertheless, we believe that I would assume so go to advanced <unk>.

Commission payments will allow us to avoid the bad debits and the loan out from advanced Commission payments and the long term, which is the most compute.

Conducive to the healthy development of our company going forward.

What are we actively searched the financial supply chain for a new path to advance Commission payments. Meanwhile, we strengthened it does tell based on the operational efficiency on our platform distribution.

I'll kick it out on their sources too keen project and the percentage at the effect of growth on our.

Gross profit in net.

It's called a number of new construction property projects on our platform was one.

1941 and distribution revenue was.

217, meaning on R&D.

Second we launched our public cloud SAP solution to address the rapidly increasing needs for it they didn't hold marketing solutions in the let's call. Her way continue to refine upgrades our success to loosen actuarial and launched a pilot.

Partnerships with others opportunity on that price.

We expect this partnership will start generating revenues in the second quarter FY 2021.

You know if that's caught her it waiting for a deal for a series of new features to enable the bad debt offline sales teams to quickly assess each it's pervasive it's.

They tried to include Smart agency recommendations agencies information and agent. Unlike.

Meanwhile, we're still rolling out multiple new features on our public cloud app, including private network marketing tool to help support the better price nearly a generation of leading screen on it. So the short from video continent for customer acquisition.

Well actually our creation of online and it'll be up properties relief as a result, we continue to expand our cooperation with several king day by practice in pilot project Billings as a result.

It really is through our public cloud solution by the end of the first quarter. We had established partnerships through our public cloud solution with 24 of the top hundred real estate about price in China, including two of the top.

Take good domestic a real estate company chats on for country Garden, China, not cool Sonic Shine are holding and the Poly group, China Poly group Green line to holding on on activities.

Start all day sell prep day business initiatives has to be spent directly in the first quarter, our close Duke's without prep T. G. I can be reached.

I can't quantify that expanding R&D, representing an increase of 81.

8% from the first quarter of 2020. No addition, then to pioneer a new debt to industry, leading technology enabled a franchise system.

While we established an innovation service model in the shelf properties transaction service space. So I want to know how to Kodak's first on releasing initiatives achieved rapid business expansions in the ER and up here random day.

During the first quarter revenue from our shelf properties segment reached 18.8 meetings RMB and increased by 183, 6% on debt.

Great show basis, looking ahead with battery segment to earn tunes its rapid growth trends in the quarter and the second.

Call it out on the 2021.

In the first quarter agree on expanded its a Shanghai center net to walk through kind of about 555 corporate team and our franchise agency national wide and wheel and 5086 agents. Meanwhile, the Iraq Force.

He was with Yelp properties.

Construction services interest, which provide post the transaction service flow a thousand to 441, perhaps not passing on the agencies.

In the past calls on our team how to put that began to gradually expand to his survey scale with its single month's revenue exceeding five meeting RMB for the first time ever and it's publicly asset premium rates breaking 15% to 20%.

While I'll pass it on average turnover pair it publicly on lifting on what can take two days well our cookie appreciate appreciation rate on the transaction efficiency was also significantly higher than the industry average level.

And we continue expanding our businesses. We also recognize the importance of call straight governance now. Please allow me to provide a few updates for everyone. On this mission critical front there on the first quarter. We further optimized our Medicaid management team, which was in line with our business day.

What happened.

Our reach out public tape business hour, we appointed Mr. Little Kingdom, two day set of senior Vice President.

Yahoo E trade, either I'm chairman of China's real estate agents on yet.

The deal will kick track, Oh, Aragon, Self-replicate business, our new business initiatives and debt adventure goodness.

Israel is the new clients to focus on integrating both internal and external consultants, so accelerates our business expansion.

For our new construction property business, we have appointed six outstanding pallet from Gen Z Q, so and general managers and our operations in different cities.

This appointment will further enhance our ability to adopt to eradicate the tone in the evolution of the new construction property market.

Lastly, please allow me to share on update on our current outlook unexpected expectation.

For second quarter of 'twenty or 'twenty one day.

Optimize our product on their services to maintain debt stable day recommended Oh on.

New construction property business as well as improve average injection efficiency on the gross margin. Therefore, we expect our new construction property business revenue Gulf between 340, and 370, maybe RMB in the second quarter.

After we have continued to expand this more collaborations with the real estate the balance through our public cloud solutions. We expect Halper 15, 15 rapid to further strengthen our service capabilities and have launched the mobile offline partnership with kimco that puts it in 18 cities.

As such we expect our secular Jewish them to start generating revenues in the second quarter on but can you 'twenty one.

And our reserve property business is entering a period of growth and development. We believe that it is.

Businesses, those scale and close with G. M V will achieve positive real soon as Jack on the quadrant. Meanwhile, we expect that our cell therapy business will generate revenues in the range.

For 14 mailing to 15 meeting RMB in the second quarter.

Based on these expectations. We are currently at full catching on total revenue to be between 380 meters to 420 remaining R&D in the second quarter of a 10 day 21. This is based on our current Arabia or the marketing environment, which are subject to change.

With that I would tend to call over to our CFO Mr. Pangels on trivedi on let's call it her financials or not.

Is on I O.

Oh on three D people that hey, we get between for me.

On the high Union D seats on the shoulder weighted I mean, the Archangel neither.

Hunting hunting and see the arguing yeah eat anything Capex ingenuity Angel.

Arnie hung and easy to achieve free cash wasn't can't go being Zhongdian Faq on income.

Yeah, Keith singer from children, who wake on for sure.

On that topic at the thought on Sichuan if I can you she can't wait I shouldnt rely on its way.

On class posture on English Huntington, who see it that tiki torch on downhole life without going into income King side.

I think new shops, and so forth on it.

On an E keytruda shown on tens on wage I mean these are the M. T. T then shall earning on it and she doesn't mean.

The idea on cheat and thingyan passenger shouldn't get heat Thingyan, Australia, new <expletive>, telling you on jeans and jumped out to each on thinking and jus for debt.

Danger Polshek on soil she can't when I showed on line in Atlanta on class.

D G to some consternation on calling who keep on totems applicators that voucher someone 10 minutes in GAAP hunting.

And he can do them on events home, adding on again told me. She doesn't mean pizza 10 kilowatt, Sichuan and sat down to on an MP centered on sandbox.

Especially on that.

On a union people on the Mali sat on either way back in just eat it sit on a union.

And teaches with them on to you Tony.

And on he.

Yeah.

On a funny one because he told you something about that and just kind of debt constant downturn. If you don't go bad in fact on fast yeah on that.

Yeah, well like you shouldn't champion Saudi to thinking time on either occasion.

E N D G to the yesterday on ballclub counting towards her through that channel by Joseph Fenech.

Turning California on homes that you can't back you'll see that I mean, BG and shell Abaddon Joshua William Hill.

Don't you eat it freely, saying, maybe orange and.

Counting told you Troy Yeah on channel that especially on this I don't know high Union D. Seafood on social cause she has hung in healthy on Cal channel I'm Kidding, you Backfisch line that you need to think adult.

So by Joe Flanagan, VP, social kosher, telling you something on that than GAAP, well shield on an item.

And when he took on says that waiting time cause I'm hanging you judge ruling on Saturdays and signed up some I forgot how you calculate on geometry formulas watching GAAP on them.

I think people all the time, because I feel like I mean pizza and can't keep at finish line yet our army, earning income queuing I mean beach on channel that one day champion price I'll say them again shock to our simple couching poll thing they can shop. He on comfortable Tom called out you're in five times debt way more change on your part time team pass out on good at me, Saudi he couldn't get to Joey.

And you're finding and saw doctor they sound climbing I feel on the jumping on a union D. G talked about any family channel Biocellate enemy.

Opinion on two agent channel standby, usually hang on and maybe Glenn he feeling again shocked logical testing tool family can shop equal since that time of day when he filled on a country.

D G to that equation.

You bet. Thanks, if I E N.

And on T weighted against standard.

Hi, I E N E seafood that non-GAAP that increases on wage or Tencent that line I mean, Pete on adding on some silly ETE on your music.

On Union easy to maybe a GAAP that keep on 10000 increase it two ways I mean be either Ikea tell me. If you start earning income she comes on and maybe a desk that keep us on hemp out increasing Jamaican me B E.

Yeah.

Yeah Harlan.

At Union standard essentially union, focusing only on Tianjin Hinging on DAU shows hint, you're hinting that you're done she towards the way back and he are saying I didn't mean to be done he income tier one way thinking she said he doesn't mean B E. E ticket you either on your movie that wish you mean cultural hang on to earning on Union D. G to think on.

Don't show them, they didn't changing wage I mean piece about bashful on yet.

They find us cash flow.

Thank you I will provide a closer look into our first quarter financial results before I begin. Please note that all numbers are in RMB terms unless otherwise stated.

Revenue in the first quarter of 2020, one increased by six 9% to 291, meaning from 272.1, mainly in the FES pet in the same period of the 'twenty to 'twenty.

During the quarter, we continued to optimize our revenue mix and prioritize that generation of arriving you from value added services and the new business initiatives, such as our SAP solutions for various platform passive participants.

And the same time in response to market computation.

Actively actively exploring digital supply chain financing program to fulfill the market demand for advanced Commission payments.

Most are running the first called her on 2021 increased by 15.

0.7% to 257.7, maybe from from.

222.7, mainly in the same care rounded up 'twenty 'twenty. This increase was due to highly commission fee payable to Adrian day from the services They run day.

Resulting from being crashing commissions from transactions.

In addition, we also rapidly.

Yeah, Chris Koch to relative to two there were various SAP solution. That's offered to marketplace participants in the first quarter on 28, when you want to further diversify our robbing our filter revenue streams.

Gross profit in the third quarter of a 2021 day Chris.

Got it.

6% choose 333.3 remaining from 49.4 meeting in the same pair read out with 2020.

Gross margin in the first quarter of 2021 decreased to 11, 4% from <unk>.

A key 0.2% in the same peer average of 'twenty or 'twenty.

I could see sequential basis.

Margin in the first quarter of 2020, one increased by three percentage points.

Going forward, we will continue to focus on the vacuum stuff solutions and improving our efficiencies to expand our gross margin.

Operating expenses in the first quarter on 2021 decreased by 25, 9% 243 meeting.

Switching could include data share based compensation expenses.

11.9 meeting.

100 at 89 point for many of the same period of 2020, which included share based compensation expenses of $26 four meeting.

Sales and marketing expenses in the first quarter of 2021 increased to 37.9, meaning from one 4 million the same period of 'twenty 'twenty.

This increase was mainly due to our U critics spending on brand promotion and marketing activities related to our use that solution that's way off on to bear with our platform participants during the period.

Product development expenses in the first quarter of 2021 what six seven points three Manning comparator choice magnified may.

Maybe in the same period of 'twenty 'twenty.

This decrease was due to the decreases in share based compensation expenses and personnel related expenses falling our decision to shift our focus from expanding our productive up on my team to optimizing our product development teams operating efficiency.

On the prioritizing thought here Bob went on our SaaS solutions.

General and administrative expenses in the first quarter of 'twenty 'twenty. One it was 25 point to many compared to 93.198 in the same period of 2020.

This decrease was due to the day, Chris in the MCR based compensation expenses and our implementation of cost control initiatives.

Net loss in the fourth quarter out to 'twenty can do one with a handle on 4.8 meetings.

Compared to 236 points for many of the same period of 2020.

Non-GAAP net loss in the first quarter of 'twenty. The wound was 93, meaning compared to 110. Many in the same period of 2020.

Basic and diluted net loss per ads in the first quarter of 'twenty to new one was both one point to seven.

In comparison, our basic and diluted net loss.

Attributable to ordinary shares ordinary shareholders per it yet in the same period of 2020 will both one on satisfied each day that should represent 25 of our class a ordinary shares.

As of March 31, 2021 we had cash on cash equivalents restricted cash on the short term investments of.

872, plus three meeting.

Short term bank borrowings of 374.5 meeting and we'll utilize our bank facilities of 499.

In that case five points five meeting for the first quarter of a 10 day to what net cash used in operating activities.

Sure.

<unk> eight meeting.

This does conclude our prepared remarks for today operator, we are now ready to take questions.

Thank you ladies and gentlemen, we will now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press the pound on Husky once again the star one for questions.

Your first question comes from the line of Lisa Thompson from Zacks investment. Please go ahead.

Hello.

Congratulations on a good quarter.

Yeah.

So.

Uh huh.

I'd like to ask a little bit of that.

Okay.

Like to ask about.

You talked about getting supply chain financing.

How far off with that free to put that in place and how much of an improvement do you think that would make.

To your current business.

Oh, Okay, that's asking too.

Restaurants to our managers.

Josh on time, and its a function finance.

Our balance you should pay a dollar on orange or that show on our social.

Yeah.

Yeah.

Okay.

How is that Paul will give you the answer on your questions. Thank you Lisa.

Okay, well known country in cash if he don't go on a good bagging on the CAGR going anything on her talk Wuchang genial.

You're counting ganging com clicking on what to go on and go on and batch on love her daughter, a whole heap of he show on and that gave US I think way more should be counting on a sure thing here I mean, Pete on them, who can do what happened when she does on kind uncle.

Yeah.

Yeah.

Okay.

Our last day of corporation with a balance of supply chain financial we have corporates are operating with about seven Bucks and that's.

That's about it.

They are about to balance.

I know, we've got Oh, yeah.

Sorry.

So on.

Oh go ahead.

Yeah. That's that's the answer from ups Apple is that correct for you.

So you have it in place now and you're already using it was seven day.

Or is that something new.

Hum quite challenging.

I should note here said, Mr. Nicholls, you know back on that.

Casino found new channel that taught on she's had on you know what you're going to talk about call. It four times you go clean anything I'm not sure on the mutual on the usual trunk line Jay the a b assets.

Yeah. Those are back in the index you go towards that signed on drums.

Okay.

It is also expanding your corporate I came in late.

Two they kill cells and a form of cooperation including the asphalt. So we're still trying to find some new waste true to do this.

So by channel financial.

And how much do you think that will help business.

Have a big impact or not so much.

I agree with you on this June should there on the new.

Without them themselves.

Got it.

Same thing goes with that.

Yeah.

Yes.

Not letting <expletive> to eating junk that accounts.

Dan can I can so you just can't that hung Yeh good day truthfulness hatch hop on them or a gain on that you'd like junk gosh mutually unchanged in the future now has your fish.

On bad debt Bellcore sure Yeah, I'm here that you told on going through the fact, it can be either assumption on bulk order you don't care that you're lucky Indeed end up on Ta number a day Tricia do you see the Xinjiang wheel to the G. M. Either then John Quealy eating a bundle now much on Sheila I kinda fill switching again don't quit draping.

Hi, Doug Shankle of beef buying him thumb, usually balance you saw on that shift gears again on where you kind of white chocolate 15, I jumped on it I can't dose you would be on Ddos number so even a woman I kind of interest you take on a turnkey Kashi go yes.

The southern cone.

Our guidance Amiga picking on the watch a non Joe number one on quake, two youll tripping pipe high fashion I'm not sure. The hurt you on the phone was shocked our on them quite you only pay on commenting on the function to trade off on them.

A woman they'll need to go to your home that's shown on Greenwood things out she craves, though he didn't know trillium that fashion on anything else will help on consortia.

Yeah.

Okay.

Okay.

On the interest of a less large comes on a company to have force the market to expand the coverage of the Lockup Commission payments increased and increased commission rates and debt.

Stan Miele they paid a price war, we have returned to a rich agents and agencies for the long term we use for companies on founder for the route to pay a commission payments will boost its closed loop transaction of new transactions a transaction profit.

Neil construction prep appropriately is whoever can cause there 'cause they vary in the bad debt that debit from Kenosha repayment on the low end of the payments. The company will focus on these facts are packaging. Our finished product. This product is a combined combination of their risk control.

Development.

Our high quality brand at the right price and a high quality project, where they're useless product I think are at.

Victor will give us better impact to our business, but we have to do a great drop on the risk control.

Okay. Thank you.

About.

The second quarter.

I expect we should expect increasing gross margins, but are you also going to be spending or will the net loss decreased from Q1.

I don't know how long this at home on the argued with them I'll leave you to be on.

Aqua culture.

Sometimes on what it was from Alabama, So once I've kind of heard from out of home.

Oh.

Okay.

Sure.

Yeah.

Okay.

Okay.

Oh, Oh that you're doing on.

Although we told them on the deal would you go to some people.

So on day seven year was on a person to person so that's.

So I can deal with them on lease and she says Oh God.

But first off on the deal was on your weighted so and of course within zone.

Now of course to know on the human founder things on it.

On Windows.

Does that change low teens sit out on children.

Yeah.

Sometimes when you turn on the RG cool women's and most of them to the multi day music.

Great.

10000 day, you're going to choose.

But also the.

Neither new free.

Sure Bob.

Okay.

Yeah.

Yeah.

Are you on a Saturday called her all the way, we're adapting a proportion of the revenue of our business sector that stops and we began to generate revenue for the second Florida South property construction fitness. We also grew our Rhapsody affording you of all debt and you have concern.

Actions fitness.

Construction techniques that we're also pursuing efficiencies like we mentioned in there you are.

Script gross profit will be arrived at the company.

Perfect Bennett will go up.

Okay.

Okay. That's good to know.

Given what you know now on what do you think the revenue level for the quarter would have to be to be at breakeven.

And what gross margin does that assume.

Okay.

Yeah.

I highlight that start at that and we didn't get quite follow your question could you ask that again. Please thank you.

Okay.

Given what you know now what quarterly revenues would you need to breakeven.

And what gross margin.

Assumption is that.

I'm, just saying that it's factored out one way like the so much spend more because he's the one more weighted towards the people that don't need that cash.

Sure Alex.

Okay.

Yeah.

She was on a woman due to the teacher, though you're telling US is that type of Columbia include up I'm sure we'll look at.

You told us that goes to the food and go.

Zoom phone, which al.

So there you go that's really what we'll know quite close to the kind of woman does Snoop on stuff cool or smoke on deal with him here with us So rupee zone.

Good how are you the marina doses.

Doug you woman Shimon can tell you we're the market leader.

On the he's going to us every day closer to a.

Commodity reason to schools it sounds interesting.

It's not quite convenient on salaries that took us back to pick a forecast now.

Propulsion of the.

Stuff that they wish that on the second of U.

We sell property and construction of that fitness that.

Gross profit there is relatively high so we kind of left that in the future. Our gross margin our gross margin will be in Chris on the revenue will go better well.

And then Joe Jobber.

She got us a soft new.

Total E G.

On Herschel Bon ton can you go mouldy, those hunting or Peru.

So you know on them.

Oh gosh.

And on to go home yes.

She's got a hungry.

That's who you choose a father Ponca city.

Hmm.

You go down like you do a quick tour zone.

Yeah.

You know what you're good at Hilton hotels and deal with a group of Plaza.

Increasing interest in the SaaS business and the high margin investment interest at the Red cell construction fitness.

I think this is a big market and that's at the window of that digitize. The centralization. So we're thinking in the filter after away more you're watching this to a wrap it.

<unk> fitness wave skills, we will enjoy a batter on earnings and our field training in the future.

Okay.

As far as the S. A S.

Do you feel already that it's going to be successful or is there still some risk that customers won't be interested.

You said that one day Union machine shipped one was going to say nothing of projections on the hydro that she goes on.

I'm on the firm's yet.

Yeah.

So as you know on.

And really the zoom phone deal with on though.

Frozen shoulder you.

10 doesn't go sometimes can do without you Cook.

Susan.

But a little hot.

Archie as English as on agreement. So it does have a zone.

Things are good.

They need to say on your call.

Two quick ones on the teams on ship. So you guys simple when you show you some women junk Janssen U.

He ran in shoulder line don't seem to flow to them.

No no.

Jim O'neil with on the on the fleets on Carnival.

Ross on the south of four years.

So your woman because I did a deal with them talk about Peru could cause on.

What time do you think or.

She also.

Ah.

Totally sometime he Nashville passes from day tender opportunities in them.

Do you want to.

First off on young from here now.

Women getting kind of caught you didn't change your thought on himself well Linda auto ammonia were eating at home.

Ah you choose you would argue for so long it wasn't quite as to whether you could indulge us.

Woman.

Look on Google, who you mentioned you will see all true.

Since you're on the total could even come close within zone.

So on binge on and that's on top.

Then he was on that was going on too long you're able to bring to you well then John day. They are behind you do of course with actually a woman doesn't really meet with them on liquid my brother and I need the.

From a simple no.

Here when I won't move.

So on required apartments.

Uh huh.

Oh wait believe that's in the on new construction business the market they have and to assess competition and the market scale will enter a bolt on neck pair. It ends up the wrap her build his own digitalization utilize the channel, but a waiver or you could even fifth throughout.

Our per our gross perfect our gross margin and the distribution efficiencies.

The weighted.

I invite them all.

Thus solution William Rast, just field of R&D on a mark to Iraq oriented production, but the innovation is still uncertain, but we still have confidence they'll probably stay with them in this day.

And you never sell our construction business from the cow cultivation paradigm to their growth has.

Her stay from Dakota weighted pair at a torrid growth per rabbit on the.

Urban regeneration on the city renovation has also into.

Ah uptake of both income on the profit profit growth. So we think that.

That helps to answer your questions.

Yeah.

Great. Thank you that's all my questions. Thank you so much every day.

Thank you as a reminder, ladies and gentlemen to ask a question. Please press star one on your telephone keypad.

Okay.

Yeah.

Yeah.

As there are no further questions so with that ladies and gentlemen, we will conclude our conference for today. Thank you for participating you may all disconnect.

[music].

Yeah.

[music].

Okay.

[music].

Okay.

[music].

Yes.

[music].

Okay.

[music].

Mhm.

[music].

Yeah.

Yeah.

Okay.

Yeah.

Yes.

Yes.

Yes.

Yeah.

Yeah.

Okay.

Yeah.

[music].

Uh huh.

Okay.

Yes.

[music].

Yes.

Yeah.

Yeah.

Yes.

Mhm.

Okay.

[music].

Okay.

Okay.

[music].

Yes.

Yes.

Okay.

Okay.

Yeah.

Yes.

Okay.

Yeah.

[music].

Yeah.

Right.

[music].

Yes.

[music].

Okay.

Okay.

Yeah.

Okay.

Yeah.

Yes.

Okay.

[music].

Okay.

Okay.

[music].

Yeah.

Yeah.

[music] free.

Okay.

[music].

Okay.

Yeah.

Okay.

Okay.

Hum.

Okay.

Okay.

Sure.

[music].

Yeah.

[music].

Yeah.

Yeah.

[music].

Yeah.

Okay.

Okay.

Okay.

Okay.

Yeah.

Okay.

[music].

Yeah.

Okay.

Okay.

[music].

Okay.

[music].

Ladies and gentlemen, thank you for standing by and welcome to Franco Network Group Limited first quarter 2021 earnings call.

At this time on this.

Things are in a listen only mode. After the management's prepared remarks, we will have a question and answer session.

Please note that this event is being recorded now like to hand, the conference over to your speaker host today Ms. Linda Li the company's director of capital markets. Thank you. Please go ahead Linda.

Thank you operator, Hello, everyone and thank you for Oh joined all join US on today's call. The company has announced its fourth quarter and you can do what.

Cash was out today on arm.

Relief is not available on the Companys IR website today, you will hear from our coffee on Mr. Joshi, who will start our call with an overview of the current industry dynamics and the details on our B RAF momentum tragedies in the quarter afterwards, our CFO Mr. Pat Gallagher on will go all over the financial.

Financials before we open up the call for questions on managed team will do their work.

Remarks in Chinese and I will provide the English translation.

We continue we would like to refer you to our safe Harbor statement.

Earnings call for relief on.

<unk> press release, please apply to this call as a way will be making forward looking statements. Please also note that we will discuss non-GAAP matter of states.

Which are more thoroughly explained.

It comes out to the most comparable measures reported under the generally accepted accounting principles in our earnings release and the filing with the SEC.

With that I will now turn the call over to our coffee on Mr. Don't see please go ahead Sir.

[noise] Petrohawk.

Since you claim that all fun little early our Union did you do the quick Sasha when Michelle impinge on shots on our Union D G to them kind of the whole year.

Yes.

Dave on me or not.

<unk> sits on agree more jita pinching, we'd see Dina Xinjiang.

Sunday off on sharing she don't have our foundries, who called Ultra D E Shaw Chew hot on the new binge out of control.

God I don't get you those producers or the Armenian jugal, so selling machines on the shelves will be more of that on a yes.

So why are you guys toby's ins on our balance your balance sheet.

So Tom Gruenwald Jixi, Baltsa Ginger so hard on it.

So this is Jos Carlos on the shelves on move out tinge on here.

It seems really driving just you didn't bother them.

And then Paul just like all the telco that's industrial team.

I was under grandmothers, which opened yet.

Sorry, it's on Dalton, Tianjin sort of bridging shanna.

So it goes on to one quick thing George on Mercer and shows you how to do that yourself Jeep on chocolate Jos on sugar.

Joe Almeida.

Finishing on she's on the expense her thoughts on Colorado near a new question Michelle Jones day.

Talking to each other to a bunch of pool by pool finish up on job two is to your question Tanya.

Linda So G changed.

Early on and yet found each other on units into a new rate filings and Judy about Tobey Charger Charger on you just go back on <expletive> on here.

Did you touch on sort of hurting you on yeah, you'd either treat usually pain are.

You do good job centered on boots will kind of continue on she's on center G boom.

So you don't know who the chocolate our assumption.

Cause is patricia and so on.

Yeah.

Good.

Yeah, and Jim who consider towards each other each on it.

We chose on slip on Josh we suck.

Private balance you need it, but we're gonna Shah, who do timber well that sounds good day.

The day Joshua on each.

You shoot phone she though.

So you either put on things on the bridge and Chuck talked about on T shirt jumping official free tonnage on you.

Do you find you.

G G mutual trenching, who will go down I suppose of Holland, new mutual on Copa So on daily food free.

So on sources towards a hard time issues, who you're answering you.

She's a funny time, telling you my mom to yours announced that plenty of time to do it on juice when cutoff on Jay.

So Joe on the tiny in Kofu the on June <unk>.

So finally township species home cause you to phone should kind of almost.

Transfusion Juju arginine Kofu Moshe.

Change of arginine.

Hershey into G suite to holiday.

Yes, you've on sheet piece won't be leann change on cohort <unk> harm.

The change for any of those stores will have other on so when she thought though.

So sundar spoke of Hudson.

Okay.

Oh man.

Hum assumed on your attention too.

So for some time the.

First off on the <unk>.

Culture, and so can she knew things will continue to only choose to gender and age.

Sure.

Turning off anytime since on production. So you had on your dollar terms in the channel.

It was a bunch of that.

So troy tons on jobs, the total attention early on and yeah. So if I can tell you.

You thought on <unk>, Yeah, Doug Chiang royalties on the passenger cars.

So volume it was only $5 five and Jordan XI yeah on.

Golly triangle congestion, if you end up on G H.

Yeah, Oh, Yeah, Duke Gili G triangle deed.

When we go on to at all.

And sometimes you're on trees on support us on how you're right non June collinsville nimble.

Also voluntarily.

No change on our triangle attention you saw on hiring and told you on the telephones out each year she arthroplasty huh.

So insurance will treat other union to tend.

Turning to cash in the only conjecture.

Are they already know and that you're doing a.

So she wears off Hugo Kintigh Spangled force and deal with a ton of opportunities you see.

Home cooks, you're entirely Utah shameful, you you fool ourselves with all Sean George Bush's into first.

First of all you see on co dishing them on she told me she Linda.

I'm talking more so of course, we're teaching she shot up would you.

So as you know I'm, just always job so I'm, hoping that some of you know what father.

On little changes all of your antenna chances of Chi Fong do do could you full on industrial machine Sushi Hangul changes on put us at the time she enjoy it goes on a hot Nielsen co op food on season.

Union. She did you do Shintaro Hoya, that's usually the way our Guardian you on Sunday already hurting Toby already Arnie early near and Dear to do things on their balance either.

[noise] told us on renewal for me on a car.

So you should move over to vault and show you on.

You're on she more so at TCT shop Zoomed in on June one July.

Do you need on neither of cogent.

On the judicial so without hangul, giving you my view on Danielle on.

The dog, but we won't do it Didnt Daniel Pinto.

So it's on who the people she won't get your thought on the D E Shaw balance Filipinos move on here. So we will the shutdown on the woman tone.

On the bullshit Eugene a ddos is on me she no joke on coffee Tom's, Utah Bulldogs.

Do you view your courses your income and gender father did.

Did you do well then you form in Utah.

On June one.

Putting the puzzle.

Oh sure George hung up on finish out our food E Charlotte St Joe Julio well tuned and shovel tradeshow.

Fringe on you about either your Sheldon zone.

Now do you think that you're doing a woman you.

You go for Shimon show Shamble way you change your bus so you got some channel and Joshua.

And just a little harder to achieve it.

Yeah, Oh man.

Foundry and fossil Q3.

So you can carve out how sort of how you show the official woman. Following you want an on time he sounds here shortly.

She was the docs have a zone.

Most of the and wave she doesn't know Joel do you do it on a well known you've on me and put on by more than two times your new I phone minutes.

Tony and congrats on the city and control.

As you follow on you talked to you or John on that idea or do you do coastal touch on this a little.

So you've got you're doing on.

On your thought to sanction a madea, it's an intriguing phone call don't put shows where you won't get go you show on the phone coach with adhesion doesn't change and Goldman Banjul on tons you also be.

Be it on quite a show, which you don't changes on home poster tomorrow.

Joe boundaries, you're at home goes on here into the phone line. If you just cut out on phosphate simple plus if you're in a whole cook no pun you get into we are so you don't even know who doesn't come ponca and debt.

Volume so she had to James B Pinta, it's only on have us on a few times so on dish on the city on cultural she is a day to do following your G. So it's our job by a chunk of our zone change of control Volkov degree on one cool zone.

Charles do you fully done a thorough job fences change that's changed for you.

Does that.

Oh man.

If I may on a phone little.

G B tranche in the U G job Force Houston question father day.

Did you do close the doors of them view on G. M E biosciences their annuity that Toby on in our linear and digital and zone, five and verbosity of box.

Yeah on train tonnage hauled on gender coaching job on the motion.

I'll tell you Cai trona ours on phones, and John Joe you got tons of Gucci.

Moshe Green shoot a question with the father did you do ours up on you. So the way you shambaugh, but possibly on Bob I am well I'm be thunder by Vinci by boss on Sunday.

Did you or do you do so.

Since you're on course, which ends on there you've got Hudson.

Did you do on a country you you saw on highway launching chunk or Georgia, moving Mandan, whereby newsroom, we'll go full gala, which anybody who knows what's happening in Boston do go out and do them.

So if I enjoy is the only thing you sometimes you go through on their way you change about it, especially ijaz woman did she will not show you're hopeful.

So it's easy to do on a $10, though you hi, This is Joe Fortunato great margins on cheap.

Oh, so sort of toggle on or what but what did you do.

I'm told us sometime you Charlie.

I'll hop back on just sue with ours.

Following man.

Sorry, if you can touch on she also the Doe, Chile, Oh, sorry, Tim.

Sometimes Institute, Georgia showed it you shouldn't call you hung you don't try to shipping.

She was on you will put your the teaching them for me.

Josh Townsend tied to Golar LNG.

Did you do so at a time to it since you've on man Oh man.

There was one zone go hungry it so don't shoot zone phones ring industrial sheet, you'll tell me on children. You go to your food won't hurt us on for Joe Osha, Sorry go on to you what I just was on.

Sure.

On the door, so Paul G change outs on as you can you let it go.

Could you hook you up on product Joshua tree ourself on a father.

So assuming it was all horses change hands on Mena deal with children, who are usually the Nanjing sensors on Geneva Sato to Boston's huh.

Quite as what were supposed to call you on getting opinion, Chuck Chon caller, and then try to treat are sufficient.

[noise], Joe hold on what I think.

Charlie Scharf on little they realize it's on a volume issue.

You know what you're doing on a little.

And Joe you John since you don't go a time machine before John gets shown with the.

Come on the infomercial that she's enjoying shoulder jeeps your entire body voucher woven Dino father, George you do she involving show you. So John doesn't impede Sunday I see yes. They may be Sundance you go on to Jim.

She involved foundry in south of you carve out on costs on a dual here with her and she.

Well, maybe on that I would suggest you saw on them.

What's the Delta you sound like Colorado.

Oh sure.

You thought for the meaningful tissue pays uniti, it's only on kind of all signed off on to a childhood.

Pinch it does so Barbara kindergartens zone pads on to you.

Oh sure usually DRG tuna, south of you John Carlson ton central.

Oh man.

So why don't you watch on Juul, you got things on close what you generally got things on our father and she's been doing Grandma E. B on the tumor so jealously hinge on job did you judge your dog ourself on you with so little.

Joan.

I want to challenge the gym.

Oh, they are union judge your dog.

Well, maybe that you're going to tend to Jones day, and then be Sunday on by year end, just maybe so there are you going to Jim.

So you you talked to you you took you off on you know well this is Tom.

Jean drunk on atone Shana Triple Gandhian, so you're going to on your college I would ask my father and Gail arc.

Joe what else did you switch I mean, you'll channel.

So she's telegraphs on Joe the only sure that's on Tunisia, and she's where they're told to us yet so how about Asia.

Let me translate this part Hello, everyone and welcome to our first quarter 'twenty 'twenty. One on this call I would like to start off the call with a rigorous review of the real estate market and partner with whom we observed a series of changes and opportunities first the scale of the new construction properties is massive.

<unk> has maintained its growth under the guidelines of debt three right line policy real estate Dubai price on increasing focus on improving there.

Turning to our rich and utilizing various channel to reduce their inventories. According to the National Bureau of Statistics. This day.

China is a commercial houses sell Salta reached.

17 points for trading RMB 2020.

By eight 7% year over year. Meanwhile, scale of the new construction property market continues to grow looking ahead the <unk>.

Gross rate for average south in 'twenty or 'twenty, one is an island climbed eight five.

5%. According to a group of 44 developers, which is still quite a high level.

Under the guidelines of the three right Laurence policy developers, our focus real focus.

More on enhancing their ability to an average of Airbus Martin channels in order to reduce the argument tourists and the products that I worked on a salary, yes, 10 number rich.

Second the regulations implemented low districts it purchased Richard restrictions and a self restrictions Asheville and centralize the line itself, which had an attitude abroad Pip decline.

The Perth profit margins as a result developers home demands now you could loading the on market expenses and reducing the reliance on distribution channel.

According to the wind data the real estate industry, although net profit margins in 2020 was nine 5% down by one.

Not a full nine percentage points.

0.2, the prior year period. Meanwhile, the industry's net profit margin continued to decline in 2022 rich its lowest level since 2015.

It was a deal in the first quarter the minister.

The Ministry of neutral on the shortest Entrelac line fill on line supplier has continued to drive up line price According to <unk> data.

The monitor to seeking the prime the premium rate of the land transaction jump to over 5% in April 'twenty, one against a backdrop of declining net profit margin increasing line coast on the rising rates in the.

<unk> channel for new construction properties, the amount of price increase and you need between poorly on efficiencies, while reducing their costs.

Do you buy at a price actively trying to transform their business models from real estate development to real estate services now accomplish their laptops are focused on strengthening on the beach metallization.

Relative to Wow V chip.

Cut waiting now on more synergies and day rates too with the average.

Digital services and the nature of the real estate industry interest around the property inventory.

The profit driver.

Oh for real estate companies are shifting from property development and the sales to assets operations and services.

This transaction this transaction requires real estate company to transform and yacht traditionally lumpy government businesses into a more.

We find it so much oriented model and that's because it's completely dependent on their companies.

Digitization capabilities typical real estate.

The companys debt chance country garden season, holding and local properties.

Have all set up a page on toward development center to build their own digital ecosystem.

In the reserve property markets of the flipped on the second Tier City Commission based on a C. T renovation businesses are starting to mature and it generates consistent profit.

And China's real estate market continue to mature red cell protease transactions will become the main graph to drive driver for real estate marketing and you're Crazy number of cities for example, and the only a magazine.

Hungary, what their downtown Shanghai, Israel is now permitted transect volume was one two of trading RMB in 2020.

Counting for 16, 5% of the country's total red cell Crepitate transaction volume don't have to sell properties.

Stipulations rate was two 7%, which was also much higher than the national average of one 1% in fact, Shanghai ranked first in the country in trouble on the market volume and transaction activity in 2020.

Also in the Johnson rear what downtime region 19, Hangzhou and Meanwhile, among China's top 10 stages in Trump's otherwise sell property transactions in 'twenty or 'twenty.

With Shanghai attitude EBIT down to worry about the outer regions Rachelle properties' market have shown immense potential for the future growth of a convention based on the China renovation businesses.

First quarter on tended to do what we reminded committed to our growth strategy and that's continued to focus on today might comment on our platform and its three core businesses, but net.

Average on our platform, we successfully upgraded our new construction property business to provide it really is the bad parts with stupid superior services.

Meanwhile, by utilizing our technology enabled a friendship with system. We also accelerated the offline expansion on our retail propane business.

Where are your map remains focused on providing on open independent and technology enabled platform.

Patent on the agencies, we're offering a complete process standardization just solution to his left thickness.

In the first quarter, we had 220000 active agent on our platform up by one 2% from the first quarter of 2020 during the pandemic.

But for our new transaction property itself bridge business, we remain full remain the focus on utilizing our asset light model to improve average.

Fishing fees and the profitability.

Currently our competitor has a booth keenly on color neupogen flexible mandates the use of advanced Commission payments. However, we have chosen not to use I'm on found folks on the bus Commission payment this day.

The net impact the number of active agents on our platform as well as our close Duke Realty checks on poverty transaction since volume leading to direct declining our nutrient section property revenue grew up for <unk>.

Nevertheless, we believe that I would assume go deep on the Bond Commission payments will allow us to avoid the bad debit and low I out from advanced Commission payments in the long term, which is the moat.

Due to the healthy development of our company going forward.

This quarter with activity they researched a national supply chain for a new path to otherwise commission payments. Meanwhile, with strength in data service on the operational efficiency.

Our platform distribution.

I didn't catch it on resources to key projects.

On the pursuit of the effect of growth on our gross profit in the first quarter or number of new construction property projects on our platform was washed out and not handle 41 on distribution revenue was.

217 leaning on.

Our M D.

We launched our public cloud SAP solution to address the rapidly increasing needs for a day didn't help marketing solutions in there.

Let's call her way continue to refine operating hours. So that's dilutive at the wheel and launched a pilot.

Partnerships with others on changing that price. We expect this partnership will start generating revenues in the second quarter FY 'twenty to 'twenty one.

You know first caught her waiting for deals to a series of new features to enable developer to offline sales teams to quickly assess our Egypt services is.

These features include Smart agency recommendations agencies information on agent Unlike dogs.

Meanwhile, we're still rolling out multiple new features on our proxy cloud apps, including private network marketing tool to help support the better price nearly all generations of leading streaming on the so the short form video continent for customer acquisition.

We'll actually be a creation of online and free up properties relief as a result, we continue to expand our cooperation with several king day by perhaps in pilot project.

And as a result.

Billions through our public cloud solutions by the end of the first quarter, we had adopted partnerships through our public cloud solution with it couldn't do before the top hundred real estate bad parking China, including two of the talk.

So take the domestic real estate companies shut down the country Garden, China, not cool Seneca Shine are holding and the Poly group, China colleague group Green line to holding on on our properties.

Sorry, I was day sell prep day business initiatives has to be spent directly in the first quarter. Our close this out profit T. G M be reached.

Our team quantified expanding R&D, representing an increase of 81.

8% from the first quarter of 2020 in addition to it.

Pardon me on a unit two industry, leading technology enable the franchise system.

While we established on innovation service model in the Rochelle proposed transaction service space. So I want to know how to Kodak's first on releasing initiatives achieved graduate business expansions in the U.

In the period during the first quarter revenue from our shelf properties segment reached 18.8 meetings R&D and increased by 183, 6% on debt to create shelf basis. Looking ahead, we expanded segment too early teens its rapid growth.

The trend in the quarter and the second called out on the 2021.

In the first quarter EBIT expanded its a Shanghai Center network to cover 565, corporate team and our franchise agency national wide as well as 5086 agents. Meanwhile day around 41 days.

But teens on transaction salvaged interest, which provide post the transaction service flow a thousand on the full hands on at 41 partner patent on the agencies in.

In the first call her I'm looking on how to put that began to gradually expand to his survey scale.

It's single month's revenue exceeding five meeting RMB for the first time ever and it's appropriate asset premier rates, reaching 15% to 20%.

While I'll pass on average turnover period.

In lifting on what can take two days well our company appreciate appreciation rate on the transaction efficiency was also significantly higher on the industry average level.

And we continue expanding our business at.

Also on recognize the importance of call straight governance now. Please allow me to provide a few updates for everyone. On this mission critical front there on the first quarter. We further optimized our Medicaid management team, which was in line with our business development.

Our self publishing business our way.

I wanted to Mr. Kim young to the position of senior Vice President Act on Yahoo.

Trade either I'm chairman of China's real estate agents ammonia, Mr. Leo will keep track on Obregon, Self-replicate business, our new business initiatives and debt adventure goodness.

You know this wall is believed clients to focus on integrating both internal and external resources.

Satellites, our business expansion.

For our new construction property business, we have appointed six outstanding pallet from Gen Z Q sub and general managers and our operations in different cities.

Appointment will further enhance our ability to adopt to arrive at the digital evolution evolution of the new construction property market.

Lastly, please allow me to share on update on our current outlook unexpected expectation.

For second quarter of 'twenty or 'twenty, one they will optimize our product on the services to maintain debt stable day recommended Oh on.

New construction property business as well as improved average transaction efficiency on the gross margins. Therefore, we expect our new construction property business revenue Gulf between 340, and 317, maybe RMB in the second quarter.

After we have continued to expand this more collaboration with the real estate the backwards through our public cloud solutions. We expect to have a 50 50 per day rapidly further strengthen our service capabilities and have launched them all off line partnership with kimco that puts it in 18.

Cities as such we expect on Saturday allusion to start generating revenues in the second quarter on about 2021.

And our reserve property business is entering a period of growth and development. We believe that it is.

Business is still scale end up close to the G. M V will achieve positive growth in the second quarter. Meanwhile, we expect debt our yourself herb tea business will generate revenues in the range of 14 mailing to 15, maybe RMB in the second quarter based on these expectations. We are currently.

So catching on total revenue to be between 308 capes mailing.

<unk> two 410 day, many R&D in the second quarter of 'twenty or 'twenty. One. This is based on our current Arabia or the market environment, which are subject to change with that I will turn the call over to our CFO. Mr. Pangels on Trivedi on let's call her financials adoption.

Just on I O three deep it all the time, we get between for me.

Earning on Union D C to the shoulder weighted I mean be arguing to either go hunting hunting and see the audience. Yeah, you need and then Capex ingenuity Angel.

On a hot Union BT talk on such as shoes, Youll cash holding Thiago being drunk again back on continuing Keith singer from children, who we confirm the huge on cool pool.

People on the fact that came to the thought on securely and she can't wait I Shouldnt line on its way on class posture with our English Huntington, who can see it that tiki torch on downhole like without going and doing turnkey.

That being home shoppers want free fall hunting on Yankee Keytruda shown on tens on wage I mean, B R. E. T. T then down on them.

And when she doesn't mean P. R. R. R T and thingyan passenger shouldn't get heat binge on the two hour young <expletive> Joey on jeans, and Jacques Doctor each on kinky and Zhu for debt.

Danger Holzschuh goes away, though she can't wait actual line in Atlanta on class.

D G to some constants Chicago later on who keep them toward on fabricators on vouchers someone 10 minutes and GAAP are they hanging in D. C to them on events home auto and home. She doesn't mean pizza channel drove that Sichuan and sat down on in E&P centered on sandbox.

Special on that Oh Union D. He's on the multi shot not easy way back in just eat it sit on it.

The Union D G with them on IMU Tony.

And on he.

Okay.

A tough on B, one beach city to teach them about that and just kind of a debt constant downturn. If you don't go about in fact and in fact, the year on that yeah, well liked Haisheng champion, Saudi <unk> time on doing with attrition.

On a high Union D. G to the yes Eagle bulk quick payouts in children Cuda turnkey by Georgia line Theyre going to be 10 day got between you and told me that you can't back you'll see that I mean, BG and shell up adding geography and you don't.

<unk> you get free lease signing I mean be earning income Chile.

Counting told you Troy.

<unk> tissue I guess on the Ien D seafood on social cause huge hung in healthy on junk tree and home to the EBIT, Sichuan and they're going to be things that I'll send cash to buy jokes wagon E&P, social kosher Chinese healthy on the thin gas well she'll yard and heightened when he took on site waiting tie goes on Teng, George you want on Saturdays and find them.

I think well see telco don't show on the Trulia was watching GAAP on them.

I think people are challenging because I feel like I mean pizza and can't keep on central line, yet army, earning in 'twenty weighted mean feature on handle that one day tempting because I'll tell you when they can shop to al shook on counting 12 film again shop. He on constant on quote on 500 Grimoire change on your part champion pass out on good at me, Saudi you can get me Joey.

And you're finding and saw doctor they some glaring I feel I'm jumping on it.

N D G talked about any family you'll channel about off line and they're gonna be a Chilean punctuate George has done by each line item, maybe Glen you feeling again shocked washable testing toll filling again shelf equal since that time of day when he film content on them.

D G to the equation.

You can't think society.

I mean on in hone weighted against standard.

Hi, Union Tep's with us non-GAAP net increase on wage or Tencent that line items on it.

On an anti skewing younger museum.

On Union easy to make a guess that keep on her 10 balance sheet Cui said to me I mean be either Ikea Xiaomi interest at all in earning income when she comes on in April a guest that cheap on a tenfold increase in Jamaica, and maybe you get here again.

Yeah, Harlan on unions, saying that it's actually a union focusing only on Tianjin cliffs Hinging on DAU show a hint you're changing you're done she holds the way back and he are saying I didn't mean to be done he income tier one way thinking she said he doesn't mean beach EG to get you either on your movie that wish you mean consulting we're too early on at Union D. G tube.

Dean why don't show them, they've been changing wage I mean piece about Bosch line yet.

Finally on Das Gibson.

Thank you I will provide a closer look into our first quarter financial results before I begin. Please note that all numbers are in RMB terms unless otherwise stated.

Revenue in the first quarter of 'twenty or 'twenty, one increased by six 9% to 291, meaning from 272.1, mainly in the FES pet in the same period of 2020.

During the quarter, we continued to optimize our revenue mix and prioritize the generation of revenue from value added services and new business initiatives.

Our SaaS solution for various platform passive participants.

And the same time in response to market computation.

On actively actively exploring digital supply chain financing program to fulfill the market demand for advanced Commission payments.

Most are running in the first call her on 2021 increased by 15.

0.7% to 257.7, maybe dropped from.

$222 seven maybe in the same care Ratchet up 'twenty 'twenty. This increase was due to highly commission fee payable to Adrian day from the services They run day.

Resulting from being crashing commissions from transactions.

Nation validation, we also rapid debt.

Increased cost related to their way on their reassert solution. That's all parts to marketplace participants in the first quarter on 28, when you want to further diversify our robbing our future revenue streams.

Gross profit in the first quarter of a 2021 decreased by 32, 6% choose 313th three once the remaining from falling knife plentiful mailing industry peer relative with 2020.

Gross margin in the first quarter of 2021 day Christ.

11, 4% drop.

18, 2% in the same peer average of 2020.

See sequential basis.

Gross margin in the first quarter 2021 increased by three percentage points.

Going forward, we will continue to focus on the Iraqis theft solutions and improving our efficiencies to expand our gross margin.

Operating expenses in the first quarter of 2021 decreased by 25, 9% 243, meaning.

Which could include data share based compensation expenses.

11, nine meaning from a handle on it a T Knight point for many of the same period of 2020, which included share based compensation expenses of $26 four meeting.

Sales and marketing expenses in the first quarter of 2021 equates to 13 7.9, meaning from one 4 million the same period of 'twenty 'twenty.

This increase was mainly due to our U critics spending on brand promotion on our marketing activities related to our new stuff solution. That's offered to bear with our platform participants during the period.

Product development expenses in the first quarter of 2021 was 37.3 mailing comparator choice 95.

In the same period of 'twenty 'twenty.

This decrease was due to the decreases in share based compensation expenses and personnel related expenses. Following our decision to shift our focus from expanding our productive bathroom at team to optimizing our product development teams operating efficiency.

And the prioritizing don't hear Bachman, our SaaS solutions.

General and other minus chiefs expenses in the first quarter of 2020. It wasn't it was five point too many compared to 93.1 net interest impairment of 2020 net.

Good day, Chris what's due to the day, Chris English in Seattle based compensation expenses, and our implementation of cost control initiatives.

Net loss in the fourth quarter out to 2021 was a handle on for a meeting.

Impaired to handle the city at six point for many of the same period of 2020.

Non-GAAP net loss in the first quarter of 'twenty for the wound was 93, meaning compared to 110. Many in the same period of 2020.

Basic and diluted net loss per ads in the first quarter of 'twenty to new one was both one point to seven.

In comparison, our basic and diluted net loss.

Beautiful two ordinary shares ordinary shareholders per it yet in the same period of 2020 will boast one sub five each day that she restaurants 25 of our class a ordinary shares.

As of March 31, 2021 we had cash on cash equivalents.

<unk> cash on the short term investment.

872, plus three and maybe short term bank borrowings of 374, five meetings and we'll answer on your slides back facilities of 490.

<unk> 5.5 meeting.

The first quarter of a 2021 net.

Net cash used in operating activities.

Sure.

<unk> eight meetings.

This is concluded our prepared remarks for today operator, we are now ready to take questions.

Thank you ladies and gentlemen, we will now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish you cancel your request. Please press the pound on Husky once again the star one for questions.

Your first question comes from the line of Lisa Thompson from Zacks investment. Please go ahead.

Hello.

Congratulations on a good quarter.

So.

Thank you all day.

That's a little bit.

Okay.

Like to ask about.

You talked about getting supply chain financing.

How far off with that free to put that in place and how much of an improvement do you think that would make.

To your current business.

Oh, Okay, that's like asking your questions to our managers.

So the short time it is a franchise finance.

You should pay a dollar a whole interest without actually when I was still shop.

Yeah.

Okay.

How is that Paul will give you the answer to your questions. Thank you Lisa.

Okay woman country in case, you don't get them, a good bagging Honda KBR going anything on the chalk well Chang jingle.

Your old accounting Sikang income like I'm going to go on and go on and batch on love her daughter, a whole new he showed warm and that gave us I think greenwash a day counting Usher then you're going to be on a merchant those had wuxi that sometimes don't go.

Yeah.

Yes.

Okay.

Okay.

Our last day of cooperation with the banks of supply chain financial way, how corporates are operating with about seven bes and it's about.

Okay cool bed and are about to balance.

And we will go.

Sorry.

So on.

No go ahead.

Yeah. That's that's the also from upsell up all that correctly.

So you have it in place now and you're already using it was seven day.

Or is that something new.

Cash flow quite turbulent you shouldn't say that Joel I shouldn't have said Mr. Nichols net back out now.

Casino found more channel, that's what balance sheet, how that you know what you're going to talk about two times your galena and genome that she was sure Avi will show on the in short on Glasscock J. The avs them on that just yet or should that is a theme that you'll click on find dongle.

Okay.

Also expanding your corporate accounts in neat.

Good day tool sets and a phone a corporation you're quoting the basketball. So we're still trying to find some new oh wait to to do this.

So by channel financial.

And how much do you think that will help business.

Have a big impact there not so much.

Yeah on the Shun sugar on Borgata.

Without them themselves.

So to speak on batteries.

Because what's happening now.

Yeah.

Not letting <expletive> to eating junk that accounts for sure. Thank you and I can show you judge him that hung Yeh. Good that you told us that top line number dent on that like jungle. She told me on changing in the future.

Further on bulk on shore, Yeah, I'm here that you told to go on to the fact, you won't be either so I'm sure a bulk order you don't care that you got into the end up on care a number a day Tricia do yeah to the Xinjiang <unk> $2, Jeremy and John Quealy eating the bunker pool now my country like Hana theory, switching again don't quit draping.

I know, who the SCHUNK would it be flashing phone you should wait on that he felt that should.

Because again, when you kind of like Josh <unk>.

I can't dose could be on Ddos number so even a woman I kind of interest you take on a time team Kashi go yes, there are some cool cool.

In fact on Cemig opinion on the watch a non Joe number one on quake.

Youll tripping pipe high fashion I'm not sure the GA channel will shock our mcquay you only pay on corn managing on a functional treat adult on now.

On a woman then Lee do you want that's shown on Greenwood things out. She page 19, that's volume that fashion when anything else will help them control ship.

Yes.

Yes.

Okay.

Okay in the short term.

On the interest of all of these large company a company to have force the market to expand the coverage or the loss of commission payments increased and increased commission rates and debt.

Stan Miele they paid a price war, we have returned to a chat agents and agencies for the long term use of the Companys Oh fountain for the balance of paying a commission payments will boost its closed loop transaction of new transactions.

Section profit ex U.

New construction prep appropriately how about can cause there because they're very in the bad debt that debit from commission repayments and a lot of our of the payments. The company will focus on is that supply chain.

Finished product this product if it come by combination of their risk control at the development based on our high quality brands day bypass and on a high quality project, where they're useless product I think of at least two will give us better insight to our business, but we have to.

To a great drop out our risk control.

Okay. Thank you.

That's about it.

The second quarter.

I expect we should expect from free.

<unk> gross margins, but are you also going to be spending or will the net loss decreased from Q1.

I don't know how long this at home on the argued with them on what do you do have to be on par.

Farquhar Kochi was actually on some guys on wheels from Alabama to wish all of them got out moving from Alabama Tome people then they go crazy on Huawei attention on that.

Yeah.

Okay.

Oh, well you're doing on.

It was really cold and warm day.

You go to some zone.

So I'm sorry, South on you were talking price because we're so that's.

I was a year, where the Maldives and she says Oh God I don't know them, but first off on the deal was on your please so on of course with Zynga.

Now of course, the no one's asked him founder things on you on Windows.

Yeah, it's a strange low teens Saddam on shoulders.

Yeah.

So on Sunshine you tuna.

Archie cool woman and most of them to the multi day Cui.

Great.

And so on single you got yourself.

Also the new Queen.

Sure.

Yeah.

Yes.

Yes.

Are you on a stack of the called her all way, we'll adapt our propulsion after arriving in our business structure.

So we've begun to generate revenue on.

The second photo array south property construction fitness, we also grew our Rhapsody.

For the new for the new construction business.

Construction business. We are also pursuing efficiencies like we mentioned in the ER or in the script gross profit it will be a rise, but the confidence for <unk>.

Perfectibility will go up.

Okay. That's good to know.

Given what you know now on what do you think the revenue level for the quarter would have to be to be at breakeven.

And what gross margin does that assume.

Yeah.

Uh huh.

Oh, we didn't get quite follow your question could you ask that again. Please thank you.

Okay.

Given what you know now what quarterly revenues would you need to breakeven.

And what gross margin.

Assumption is that.

And also another fact that went away like the so much spend more because he's the one more weighted towards the pinnacle Bausch commodity Utah.

Sure Alex.

Okay.

Yeah.

She'll go on and due to the teacher on you're telling US performed to include all essentially on what cause you told us that goes through the food to go.

Jean Paul and Joe.

So there you go that's really what we'll know quite sure things Oh, My gosh Hadoop on.

Cool.

Oh, yes.

So we don't sit on you the commodity enough doses change in value on that Shimon can you tell you where the Margarita Sue on the usefulness I realize most of the.

Yes.

The reason that someone's interest.

If not quite convenient on service back to Sebastian sick forecast now.

Potion of the stuff.

Stuff that they were here on the second.

It felt property construction of that business the.

Gross profit or is it relatively high so we got enough debt in the field trial, our gross in March our gross margin will be in Chris on the revenue will go better well known.

Joe job so she got us a thought from you.

Cohort two.

Say herself on toys and you go mouldy those Huntingburg Peru.

So you know on them.

Oh gosh.

And I took on yes.

Paul you got a whole year.

Isn't that true mutual was the father glucose.

Kim.

You go down, but if you do quick thoughts on.

Okay.

There would be a good hotels the hotels you deal with a group of assets.

In Christiana you went in Iraq in the SaaS business and the high margin investment interest.

So our construction business.

Oh I think on it this is a big market and that's at the window of that besides the centralization. So we're thinking in the future after away more you're watching this to a wrap.

They are you crest goodness, we feel we will enjoy a better Ernie and fewer trains in the future.

Okay.

As far as the S. S. There's debt do you feel already that it's going to be successful or is there still some risk that customers won't be interested.

You said that one day, we knew she was sure we'll Miss you mentioned I think on projections control on the high. She said she goes on how you want to put them on the fruit yet.

Yeah.

Really the zoom phone deal with on though.

Our free and show that you.

C N doesn't go sitcoms and do without you Cook.

Kingdom.

But a little hot.

Archie had some glitches on green.

More so we took care of ourselves.

So the.

So on your call.

Two quick ones on a single chip.

These are simple and show you some woman junky answer you.

He ran in shoulder linked on since you're talking.

No.

She ammonia was on the on the fleets on Carnival.

So on the south of four years.

The woman that really deal with them talk with her about her room could cause on cloud.

Uh huh.

She also.

Uh huh.

The Eva.

The only thing hunting Nashville passengers on diabetes opportunity agenda.

Do you want to.

So on your we'll call me on though.

Women Syngenta protruding change your thought on doing so well Linda on your or your genes homes.

I used to do without the rule doesn't close what are you guys indulge us.

Woman.

Look on Google, who you mentioned that you will see all of it.

The channel.

Total or even the home.

Question was on Sunday.

So on binge on and goes on that.

Please since he's on I just want to go on here with a 24 month Jones day. They are behind you do close with actually a woman doesn't even need whether on liquid move other than me the.

On the most involved in the us up on here when I won't lose Youtube, Google don't require the hot buttons set up.

Oh Wow, that's in the new.

New construction fitness market has entered a fast computation and the market scale will enter a bolt on neck pair. It ends up the buy up her build his own digitalization utilize the channel.

Our wheel couldn't fit two hour per <unk>.

Perfect and gross margin and.

Distribution F N b.

Efficient pizza and the wait.

I invite them all the stuffs solution on William Rast, just field of R&D on a mark to arrest our rapid production, but innovation is still uncertain, but we still have confidence up August day with them.

On the Red cell construction business from the cow cultivation per day to their growth.

Pets day from the Cod weighted per day trip growth periods on.

The urban renovation on those city renovation has also into a.

Our state of both income and the profit profit growth. So we think.

That is the answer for your questions.

Yeah.

Great. Thank you that's all my questions. Thank you so much.

Thank you as a reminder, ladies and gentlemen to ask a question. Please press star one on your telephone keypad.

Yeah.

Yeah.

Yeah.

Okay.

Alright, if there are no further questions so with that ladies and gentlemen, we will conclude our conference for today. Thank you for participating you may all disconnect.