Q1 2021 BlueCity Holdings Ltd Earnings Call
Good day, ladies and gentlemen, thank you for standing by and welcome.
The Blue cities first quarter 2021 earnings conference call.
Currently all participants are in a listen only mode.
We will conduct the question and answer session and instructions will follow at the time.
Mind, you we are recording today's call.
If you have any objections you may disconnect at this time.
Now I'll turn the call over to Lehman call head of Investor Relations for the company Miskal. Please proceed.
Okay.
Thank you operator, and Hello, everyone will come true, but it was peaceful.
Credit of 2021 earnings conference call.
Joining us today are Mr. Powell of Lima, Chief Executive Officer, and Mr. Jang Chansons acting Chief Financial Officer.
We released results earlier today. The press release is available on the company's IR website at IR the balloon.
For the C D dotcom as well at some of these lots of it.
Of the payoffs at home will also be available and don't feel hours on our IR website.
Before we continue the pace note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S private secure.
So the application Reform Act of 1995.
Forward looking statements involve inherent risks and uncertainties.
As such the company's actual results may be materially different from the expectations expressed today further information regarding this and other risks and uncertainties.
<unk> is included in the Companys public filings with the SEC.
The company does not assume any obligation to update any forward looking statement, except as required under applicable law.
Please note that during today's call management will also discuss certain non-GAAP financial measures for comparison purposes.
What he did only.
The GAAP results and the reconciliations of GAAP to non-GAAP measures can be found in our earnings tragedies Oh sell of pace now the unless otherwise stated all for you guys mentioned that during the conference call are in Chinese renminbi.
With that let me now turn the call all of our travelers C O me step.
About Lima, Mr. MA will deliver opening remarks in Chinese.
Translate his remarks after that our acting CFO Ms coaching Kingston will take over to discuss our financial highlights let me sum up his go ahead.
Is it anything like the hall.
Alright.
D G to kind of weird.
Thank you Amy and Hello, everyone. Thank you for joining our earnings conference call today.
Part of our Union.
All of the hygiene.
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As of today.
So when will they even without all of the losses of what can be summed up by the interest with the Chilean box.
Sometimes you do well monetize all day.
Colombia fishing all day.
For the hold off label.
The income total can be summed up by a bunch of our biofuel since you didn't he drew the shallow my leg of it.
Total it can be summed up so I'm just curious why wouldn't you drill down to the Luna.
The language.
Well the 1 goes you know the kind of growth.
The she shops.
Some of them chunky, so we're trying to do.
The agenda summed up the job.
The other woman the time controlling the guys I know what she gets on the tally of isn't the only.
We kicked it off of 'twenty 'twenty, 1 with a great performance from strategy and operations this quarter, which he achieved a total revenue growth of 37 per cent.
Over a year to 271.1 million Oh, App and the youth reached $8.3 million of 37, 5% per year and total paying users increased 47, 8% year over year to 640000.
This.
This quarter its efforts in diversifying our revenue strength also proved to be very rewarding with he house, achieving a 219, 7.7% growth year over year to 12 million and membership services, bringing in 75, 9% growth year over year.
Year to 26.
The 24 million.
We are pleased to see strong growth in all of our business life, which clearly illustrate our strategic execution I'm part of innovation and improving user experience for me seen solid top line growth and user engagement.
Total other challenging.
And the yes, even without a lot of course, the shop for Jim calling you.
So actually the thing unilaterally took place for the Tupac well minerals' history, the local job coordinating of who they want either all 3 of the true.
So very encouraging Concordia of 19 Jin Kang from total L. King I didn't feel the tissue that Youtube like most of the talk with you in Congo policy of harmony of the course of water.
People in the trenches of genes.
In addition to other strong organic growth this quarter as the way.
We announced earlier in April we officially obtained our Internet Hospital license for he house and I'm kind of laying a good foundation for us to build a comprehensive diagnosis.
And treatment path for them for myself.
This marks yet another significant milestone for the company.
It presents a great opportunity to cease in the new and revenue growing health and wellness industry.
Well literally all of them what she's not here, so with the RMT high, but I'm going to need.
John Gingell shouldn't try 5 Fisher forward momentum so far of kind of issue.
Regime for months.
And the good.
I'm, calling you bought here for me that you'd actually true.
Well most of our Haynesville and yeah, so just to sort of hurt you in Congo.
So you're gonna HIV someone fishing hook you all can show them idle for.
What's your down yesterday really hurt.
The income towards home HIV of volatility all way through the year, we'll finally caught onto 19, Hong King County, being something that's done yet.
So I'll go to the light mania salaries for the show with him down.
Digital for junk out of a total of Colombia for Cimzia someday the them to you.
You called me the shallow woman sorry of course.
For home and 19, King Kong, so you're going to answer the theme through the fourth I mean, the you'll see all of it isn't certainly leave I mean, the you didn't on the notion of getting Congress of you got pool of other than for some of the quit for the whole year.
Our C I Scott platform done on top of the interest has been committed to promoting HIV awareness.
And the prevention 2 of user base and as.
The from Airlines in China.
In order to meet getting demand for mass of personnel health and wellness tea house with launching 2019 with the flow because I'm actually gonna be related consultation and the merchandise.
Over the past 2 years.
He how services had gradually expanded from sexually transmitted diseases, including but not limited to HIV 2 the fields of medicine every day of bound it and it has achieved triple digit growth since launch.
This quarter again reached close to 3.
100 per cent.
Growth, which not only reflects our of great effort in execution.
Expanding our user base and now I'll take payload of health related services for men, but also taking your 5 the development of the underserved by the flourishing is that true.
Okay.
The new women's I already Arden Union volatile in the.
Sunny Lin of Hungary, Dalian bulk of usually at all or any of our own yeah.
On the T and accomplishing each day.
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Google of nitrogen Council of biology.
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Tony of your life 19 countries, hoping with what all of those online tool for him.
Some of that in football, but what's all going all she's also shouldn't you shouldn't.
For 2 of other when cheap.
For Michele could you want what you're going to Cook all of the junior by email. So I would you be tqm's industry.
According to our for instance, Saudi where the report commissioned by Us for the company's fiscal.
<unk> 2020 annual report the.
The scale of China's on non house consultation as well as online prescription in the pharmacy market is expected to reach 523 billion renminbi equivalent to 80 points say billions of dollars by 2025 and the size.
Myself of mass house in house care market in China is expected to reach 99.6 bed in the main be equivalent to $15.2 billion of U S dollars by 2025.
I believe that with our large LGBTQ community of user base and for.
Our advantage, we are well positioned to capture of this enormous industry opportunity for.
For a long time, the health needs of men have not been effectively met with the bouts about issues like insufficient privacy protection limited drug purchasing channels and E. Suffice.
For smoothed sex education awareness.
We are here to provide solutions with our unwavering commitment to providing a safe and secure all he says to satisfy the needs of the LGBTQ community.
Well Mr. Ongaro, the do it where you were kind of talking about doctor beans.
Fishing, 1 quarter of Barclays.
We sort of internally.
Can you talk on behalf of the region.
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Some geo for the function and welcome to you on the call January to HIV.
The gentle you from Xinjiang mentioned being call it <unk>.
Generic company current county of Santa automobile sales.
The national HIV.
For the year pilot study arms of our shirt to you for that.
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With the gala Yamal LNG.
The universal injunction total GAAP.
The whole when the EG channel, we can intuit to of men, who share in software and 1 year ago. The.
From inclusion of nitrogen conservation for illogical that income talk a little.
This is an opportunity.
Key for the city, making of wider impact and creating more value for our members in society.
Want to make a better tomorrow for everyone.
For the into the future, where the integrated Internet Hospital offline pharmacy chains health management platform focused on HIV.
On the testing and provision sexual health and chronic disease management with general Health care services.
Our main objective for he house in the second half of the year.
Primarily the infections.
Firstly.
By the end of this year courage for our to our.
Our path post exposure prophylaxis, the delivery services will be extended from 40 cities 200 in China.
Tap is a major contributor to his house revenue and we expect revenue growth by expanding into more geographical coverage.
Secondly.
As dramatically manufactured crap pre exposure prophylaxis Madison kits of more affordable way.
We foresee a boost in using the numbers as we push up our efforts in prep awareness and promotions.
Thirdly, we expect of full rollout.
<unk> of our online Internet Hospital services this year in July.
The collaboration with doctors and health institutions specializing in men's health.
But you do 1 of the Ohio area, where yes with all of you either in China.
Well Mr. <unk> could you talk to the opened 2 other.
In the fourth.
Women, reaching union so to the logging Mitchell is rule of talking in terms of non U.
Sure.
So the but of course you on guidance.
Fisher Omaha credit of intervention truth, we're talking of the underground zone into our country Cushy looking heavily.
Volume It also woman all of our Union Tonkin quite honestly at home.
The largest shipping loan guidance you saw the Alcon firefighting.
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Shanghai Shenzhen tweak on total.
Let me do 2 degree of Oregon, the <unk> dealt with with the manager CIT Bank.
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The largest cushing via a total of 100 for sure.
Yes.
In this quarter, we also achieved meaningful progress flour, our sales business development.
Main committed to customizing our product based on user behavior.
And the needs of the local community in different regions.
After the survey showing 65% of our upload app users in Japan, 1 photo verification of features which was firstly introduced in Latin American late last year.
Immediately launch that function.
To ensure a safer and more reliable platform.
Latin America, a key expansion market for us in 2021.
So had a positive reception to the voice chat room function.
We're launched campaign with local Latin American Kols for further promotion.
Rich.
Latin America, I mean, your numbers to nearly double since the new version of introduced last year and reached a record high in April with our 10% engagement rate for the voice chat room function.
Well you could argue margin into co gen in terms of internally.
With the woman's higher to engineer in cadre of her put a date on commodity coupon of initiation of comfortable for the Eugene trench of unaltered being tissue <unk>.
Well when the juncture total college with the Houghton.
Below the jumped the Jaguar Bonder quattrone, George with the hold on the switching trends will show to cash flow.
Tung Chung of Hanmi.
Moreover, we continued building our global presence and expanding brand awareness worldwide.
The theme, we held a number of nice.
<unk> training events for international holidays that has won the day Cherry Blossom.
First of all what effect the more and more.
Each and every 1 of the is left in England was success.
<unk>, a global audience and gathering international visibility moving.
Moving forward, we are fully intent to organize the virus social events such as the lithium per.
Price campaign to celebrate 2021 for global community building enhanced monetization capabilities.
So I don't work for Magellan.
The issue going on the type of her function, but only some typical onshore and shallow turnkey.
<unk> backlog in the Europe Egypt.
<unk> <unk> other singer solar holding the.
<unk> it can be from 500 percentage of claw back of interest for sure.
Well most of the Chicago known key boutique, arguing for time to it we don't share the tundra.
In the non China, we will continue improving our existing products with new.
New and innovative features and services.
In the first quarter, new posts and in the actions of the community function increased 33 and for a 2% respectively on a quarter or reported basis.
This growth was driven by enhancing app out with them.
And operation, which we will continue optimizing for you the engagement and the community health.
These are the insurer for Magellan tissue juncture Komatsu for Hershey Handholds of a chunk of our time in Q2.
1 of the challenging Franco the triple for Wingo to the other conventionally.
Passenger boarding for just looking at on top of course on Johan the leader to lobbying for it.
<unk> the short term income book Homelink, Ebola Chengguan into 2 goes from here.
European political for the <unk> June <unk> each of them to the unleashes the Gulf of team.
So that when we put onto our channel.
With BG.
<unk> typically in times of the Continental Europe, EBITDA Liza 2 starting by the English yet.
Meanwhile, we maintain our commitment to leveraging our product portfolio through investments in technology and marketing.
We believe zinc has lots of training.
Service has great monetization potential.
This quarter kind of how the annualized training range remain within the non life Kramer 1 of the primary operating strategy for accelerating brand growth and the monetization capability.
Both of the engagement range.
Range and paying ratio for nice tuning channels nearly broke our rep force from the pandemic in the same period last year.
Moreover, we are enhancing the analytics of user behavior, and we will continue to prioritize the product innovation and optimization for containers.
Continuously improving user experience on all of our platform.
While non tissue to T Gagan zone.
Our GPT clearance from the Lindsay Hall, Egypt.
Well, maybe the Evercore has been good hustle hurdle of kind of alerting shisha hurdle does that show true at each of the Houston hub for Linda.
No.
The long haul Everglades of Newco Hustle hurdle of at orphan seizure of when you're talking.
The which is the warmer gesture where the chunghwa in Penguin wholesale Tupelo balance of Shanghai, We will have EBIT will talk about each element.
We remain committed to drive LGBTQ Aladdin.
Yes.
In March we partnered with units out there theyre of discrimination campaign that aims to end discrimination and inequality in the Asia Pacific region.
Following the campaign that non public interest co party of.
Our promotion of <unk> <unk>.
Discriminate against me with you on 8 which was uploaded on our blue App and other social platforms in China.
By the end of May of the video was paid over 5 million times of course, all platforms with our 10 million interactions on Weibo.
So ideally you go.
It comes out of you and Paul on the LGBT closer to July when the high tier of Trimble showcasing Laguna of single day.
3 of the hotel ongoing EBITDA.
Beijing and other mobile point of anyway, the health of our Cheetah Rolando most of what you're actually the auto dial and hosting the charged for docking I fully cadre, Sheila I ought to be the kingdom.
The <unk> hotel.
Well, Michelle and I will also give you in the Gourmet hall, so shouldn't be in the June 'twenty I could kind of issue.
And the <unk> the economic zone for the Shlomo.
In addition to building a more diverse and inclusive LGBTQ community. We are also participants.
You know the variety of honest social advocate acts and the community welfare of activities.
In April the Street Animal Protection campaign launched the collective labor down non public interest and the Beijing AIP a foundation for animal protection, what's the success of all Blue cities.
The platforms.
Bringing together many from the LGBTQ community.
We hope we can make the world a better place showing delta around that same love since of the quality and yelling for of battery life, everyone. Peter.
Thank you to them the green.
So for us.
Good day.
The other protein drug for me.
Regarding the <unk> chunk of attrition of Lee, calling on hospitals in Australia.
As you can get on the clients with from the other Shellfishery total.
We can John.
In conclusion.
In yet another quarter of solid operational and financial growth with meaningful progress in all business sectors.
The left our market, leading position strong execution of our capabilities and some growth strategy, we will maintain and growth from rapid of consumer demand.
I will jump the of Heartland. Okay that is also of how soon turn you would have without giving you the tower gotten the GTT team.
Now, let me turn the call of <unk>, our acting CFO gene Chen who will provide details of financial performance.
Thank you Ms Ma and the <unk>.
For joining our call today.
Sure.
As Mr. <unk> just mentioned.
On the 1 is off to a great start for <unk>.
The reward another strong quarter with encouraging business development and the solid financial growth.
Now let me go through our financial.
Total loans for the quarter.
Before I go into details. Please note that all numbers presented are in Germany.
For the fourth quarter of 2021 unless stated otherwise.
<unk> 8 <unk> hundred.
Our year over year of basis.
Highlight laws otherwise specified.
Detailed analysis is content in our earnings press release, which is available on our IR website.
Total revenues increased by 37% to $271.1 million driven by Biogen.
Amortization of our day was services offerings and our favorable revenue mix.
Revenue from overseas contributing 10, 7% of total revenue slightly increased from 9.9% in the same period last year.
Total paying users of pellucid.
The managed portfolio.
<unk> increased by 47.8% 2 of 640000.
Revenue from live streaming services was $219.9 million up 22, 4% as we previously announced that we launched.
Our new live streaming strategy aiming to further drive our user engagement and the pain of hybrids, which has shown a good progress in the first quarter.
Yes.
Our quarterly paying users for live streaming services increased 6.3% to 189.
The data from same period last year, when the paying ratio reached historic high during the peak of COVID-19 in China.
<unk> was renminbi consultant for 163, an increase of 15, 1% compared to the same period of last year.
So the.
Notably in this quarter.
Generally for us in the was volume our revenue streams are bearing fruit.
Revenue from membership services was $26.4 million of 75, 9% our quarterly paying users.
Membership services increased 75, 5% to 517000.
While <unk> was renminbi 51, roughly flat compared to the same period of last year.
We expect accelerated growth for.
1 of our ships services as we continue to enrich and optimize our service offerings.
Revenue from Edward Hyping for 12 million.
The 113.7% as we continued to introduce new advertising and marketing solutions to a trial.
Our mental advertisers.
Revenue from merchandise sales of <unk> were $11.4 million up to 197.7 per site.
The increase was primarily due to the continued expansion of our product and the service offerings.
<unk> must be follow and the true our 3 main objectives in the second half of the year, we expect <unk> to achieve stronger momentum into the future quarters and the become the new driver of growth for the company.
Cost of revenues increased by 43% to 1.
With $85.1 million growing in line with our total revenue the.
The increase was primarily due to the higher revenue sharing costs along with the continued growth of live streaming service sales the increase of cost of products in connection with the growth of E House motion debt.
100 <unk>.
The increased staff cost as well as share based compensation expenses.
Gross profit was 18.6 million up 26, 1% gross margin was 31, 7% slightly down from 32.9 per.
Net sales in the same period last year, but 6.8 percentage points higher than the last quarter.
Mentioned earlier, the operational adjustments of live streaming will bring some short term margin price as we invested more on the supply side of live streaming.
Look forward.
<unk> to gradually reduce the revenue sharing percentage as we solidify our matched the leadership and successfully implement the sustainable model for our live streaming service.
Meanwhile, we will continue to accelerate the revenue contribution from our membership service.
Weakness with higher margin to achieve overall margin improvement.
Operating expenses were 138.7 million of 76, 3% due to higher marketing expense is higher.
Higher staff costs, mainly from increased head count the increased professional fees as well as share based compensation.
Sure.
Selling and marketing expenses were $65.3 million of 69, 2% due to higher advertising and promotion expenses.
<unk> increased staff costs and the share based compensation of expenses.
Technology and the development expenses were $48.2 million up 59, 1%.
The increase was mainly due to the higher staff cost in technology related the department.
Sales.
The increase in content server and the bandwidth cost as well as the increased share based compensation expenses.
G&A expenses for $22 million up about 157.5 percentage for you.
Increase.
<unk> was mainly due to increased professional fees and the staff cost as well as share based compensation expenses.
Net loss was $52.1 million compared with a net loss of 7.6 million in the same period last year.
Adjusted net loss.
<unk> was $42.5 million compared with adjusted net loss of 7.6 million in the fourth quarter of last year.
As of March 31, 2021, we had cash and the cash equivalents and the term deposits of $526.7 million.
Compared to 611.8 million as of December 31, 2020.
Now, let me talk about this year's guidance.
The retail rates, our revenue outlook of the Renminbi 141 billion to Renminbi 146 billion.
The full year 2021, representing a 37% to 42% year over year of growth.
That concludes our prepared remarks, let's now open the call for the questions. Operator. Please go ahead.
Thank you ladies and gentlemen, we will now begin the question and answer session.
If you wish to ask the questions. Please press star 1 on your telephone and lights for your name to be announced.
If you wish to withdraw your request. Please press the pound of harsh key P standby, while we compile the question.
Turning to the roster.
Once again is still 1 of <unk> questions.
Our first question comes from Laura Shampine from Loop capital. Please go ahead.
Thank you for taking my question can you break out the <unk>.
Acquired businesses and give us the revenues preferably by segment for acquired businesses and the loss the.
In renminbi from those 2 businesses aggregated in the quarter.
Hi, Laura this is mailing let me translate.
And then the other question first okay.
Sure.
Sure sure sure.
So he'll be drawn he shook all year with the goes down here with the Kennedy.
Yeah.
Okay.
Hi, Laura and adaptive learning and I will answer the question directly actually this.
This quarter our income.
Total acquired of business, let's do anything cut the Gaza accountability.
8% of our total revenue.
Okay. So if we're looking to further the talents majority what's the majority of the acquired a position it come from.
Translating has come from increased revenue and for <unk>.
Likely discussed.
Discuss early and they have much healthier revenue capture wave.
It's less than 60% of revenue came from lack of training.
<unk>, 30% from membership service debt Andrew.
From the men and the remaining part from advertising services.
And for actually for let's do you know that day. The revenue contribution is quite quite small and we don't we do not we do not in the stage 2 of these.
And the zone and the revenue and the revenue contribution from each segment.
Got it can you provide to them.
Renminbi loss from <unk>.
And let's do in the quarter.
Okay.
Describe Laura yes.
It's like net we haven't officially disclosed.
<unk>.
Each business lines per gallon loss for each of business line.
But you know the way.
Ken of when we acquire of being highest like that.
I think I'm up for.
The key Bel canto.
Take your ancient right. They are profitable, but you know its like single digit net income.
Our net margin.
And we think high this quarter actually.
We actually invested.
With our in technology at the.
Development as well as less streaming cost side.
So so that's the way that that's all we can provide at the moment.
Okay. Thank you.
Okay.
Thank you.
Thank.
The next question comes from for pay from Oppenheimer. Please go ahead.
Hi management, Thanks for taking my questions.
<unk> was the only so long range juices from Samsung 1 of the judges who will be easy to.
Hi, good schools that Wingstop.
Hotwire co coordinator.
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The whole suite the AGA, 1 piece of Guangxi women's before the current hugs.
Thanks for all women zombie usage to eating junk of Europe resolve that in the.
For the children.
Sure.
Biology of homes substituting the on the clinical cause guidance, we're not 1 of the child sometime in my opinion, so all of that Joe Schwartz.
We would see the wave is a good schoolfriends hopefully you'll sort of shutdown was that when you talk to the shutdown of the pool for centuries of golf balls and the city.
Actually you got something on the cheap.
The all of you saw the 1 piece of the Guangzhou Wuhan took all of our past of all kinds of if you do the op has the ratio of the obesity in dogs, you called up with sort of something when you talk to each other.
1 of them quite tissues.
Part of the neighborhood.
I just won't wait till the tone.
Solid yet so all of it yet.
So I will translate for myself. So I have 3 questions. Here first question is about in the EU growth. It seems our Mou growth and the <unk> no pause. So can you talk about.
You do overseas and domestic in the U growth.
Growth and the second question is it seems a lifetime revenue sharing ratio is still relatively high compared with last year at the same period.
So you mentioned you expect the.
The revenue sharing ratio to decrease from here, but can you talk about.
On the magnitude and when that is going to have to happen and the third question is about operating expenses. It seems our operating expense ratio.
The increase quite a bit this quarter.
I know that's because of my Westmont parents. So can you talk about these trends for the mass couple of quarters. That's all my questions. Thank you.
Some of them.
Hi, Thank you okay.
Many of the answer a question directly okay.
Our income of a day I know you from overseas is around <unk> 44 per say I'm talking about total revenue.
From overseas.
The cost this quarter anyway into growth.
I'm a huge from a quite of bit of Neste My is less the Westinghouse of.
<unk> contributed the majority of our May use.
That's the first question and second delay regarding.
The income of in terms of a menu of course.
Of course, it's like that overseas NAV.
This growth above 30%.
Bank debt.
And domestically, we still maintain the.
The growth above.
About 20%.
Net income of.
At the.
Revenue sharing.
Of that training et cetera.
In the U okay on your own.
Your basis.
You will see a slight increase in percentage of revenue sharing but you kind of sees that as we mentioned in the last conference call. It's like with doing some adjustments in the lives of training.
<unk> share of special days of supply side of the lack of streaming and.
And that means that we are investing more in the cost side.
So you can see Us Act.
Actually the rebound in last quarters.
Revenue of percentage of sharing it.
It's like we are slightly down from last Q4.
And you can see the channel and.
And we expect that that trend will continue into fourth quarter.
And if we are talking about you know on a yearly basis with 2 looking for a slight decrease in the percentage of revenue sharing and let me give you some more color about.
The because you know.
With this because the way these calls before its like we are looking for margin ought to see some dramatic this day.
Credit in luxury.
The share percentage.
Of lack of training, but actually for pin count as of May just mentioned we are.
Investing more in from class luxury business.
Just back on the on the supply side the cost income at the base that is like their use of profile is more trending more fashionable so we need to compare we need to compete with T Park sell from Shaw things like this we need to attract.
Our net high quality of life tumors to go to 2 to go to into our platform. So currently the sharing percentage of net income is actually relatively much higher than our original path for which include okay. So in this way.
It's kind of all the take all the things into consideration of the blinded actually.
Sharing percentage will be slightly lower compared to last year.
Regarding the third question regarding your Opex, the increasing of hacks.
After this quarter can be you know can be separated into 2 parts 1 and that.
On the year on year basis, after the integration cost and less to the Oh, there of head count additional head count promising kind of unlocked.
Okay. That's over 100 already so this 1 this this actually accounted for most of our headcount increase in the in the in the fourth quarter as well as the Blues Oh also added head count as well.
And of the second thing is for the.
The cost is actually last year during the pandemic, we actually.
We actually see some savings in the social insurance part.
It's like.
Throughout the whole year last year, we see some savings in staff cost.
Of course, the government is kind of wavering.
Certain percentage of social insurance for all of our employees.
So in this way we can see of.
Like additional true to sweep.
The total sleep caught a percentage point of total revenue itself.
That is related to the the savings in social insurance, that's the force that's the second 1.
So.
In addition to the increase in staff costs as we did.
As we disclosed earlier that way of putting more efforts in south.
And the marketing so therefore, yes.
You can see the south marketing expense is like about 20% of our total revenue and wakes back of this range will maintain relatively the same level throughout the year.
And regarding the G and H actually.
The call that.
The same period last year last year Q1, we're still not we're not in the public company. So it's like the majority of G&A increase is the actual professional fees professional fees related to being a public company.
So that's why you can see a surge in G&A.
Today, it's around pay per cent of all of our total revenue and the wasting the the percentage will remain kind of you know for.
Flattish throughout the year.
I hope that answers the question.
Yeah of course work okay. Thank you.
<unk>.
Thank you as a reminder, ladies and gentlemen, if you wish you asked the question. Please press star 1 on your telephone keypad.
Yeah.
Right.
Right. Thank.
So seeing no more questions in the queue, let me turn the call back to Mr. <unk> for closing remarks.
Thank you operator, and thank you all for participating on today's call and for your support.
Yes.
Your interest and look forward to reporting to you again next quarter all of our progress.
Alright. Thank you so ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all disconnect.
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