Q2 2021 111 Inc Earnings Call
So to begin shortly please continue to standby. Thank you for your patients. Once again today's conference is scheduled to begin shortly please continue to standby. Thank you for your patience.
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Good day and thank you for standing by welcome to the 111, Inc. Second quarter 2021 earnings conference call. At this time all participants are in a listen only mode. After the Speakers' presentation.
It will be a question and answer session to ask a question. During the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the conference over to your first speaker today Ms. Monica Mu. Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us today for one well one second quarter 2021 conference call on the call today from what one odd Duck took on you co founder and executive Chairman, Mr. Jamie Lilt co founder Chairman and CEO.
Oh, Mr. Luke Chen C. At all of our major subsidiary Mr. Harvey One C O O Ms. Tiffany Jugal S V P of Investor Relations and business development, Ms Monica Mu Investor Relations director and Mr.
Sure Alex Lu finish director.
As a reminder, today's conference call is being broadcast live via webcast. In addition, a replay will be available on our website following the call.
Companys earnings press release was distributed.
E N today and together with our earnings presentation are available on the company's IR website at IR Dot one ones dotcom Doxy and.
Before we get started let me remind you that this call may contain forward looking statements.
Or made under the Safe Harbor provision of the private Securities Litigation Reform Act of 1995, such statements are based upon naturalness current expectations and current market and operating conditions and relate to events that involve.
Well known and unknown risks off with interest and other sectors.
Which would cause actual results to differ materially.
For more information about these risks please refer to the company's filings with U S. D. C 111.
Does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise, except as required under applicable law.
Please note that all numbers are in RMB.
One all comparisons refer to year over year comparison, unless otherwise stated. Please also refer to our earnings press release for detailed information of our comparative financial performance on a year over year basis with that.
And I will turn the call over to our CEO, Mr. Jamie Lilly.
Good morning.
Everyone.
Thank you for joining our country's punchy, one second quarter earnings call.
For the benefit.
Those who are new to the 111 story I would like to take a moment to summarize our business.
I'll also cover our recent operational performance before handing the call over to Luke to discuss the financials.
We will include all prepared remarks with guidance.
Q3, 2021 after which well open up the call for Q&A.
From the very beginning 111 has been on a mission to transform and advanced the health care services industry in China through technology.
By connecting patients.
And sports medicines and the medical services.
We have already achieved significant progress in this mission over the past decade, we see establishment of three innovative technology platforms.
One pharmacy, which is currently one of the largest online retail pharmacy.
We lined up and it was also one of the first entities to receive an online pharmacy license.
One clinic, which provides consumers with a myriad of cost effective health care services.
And one medicine marketplace.
One stop shop fault.
In trauma in China to source medicines from a wide array of pharmaceutical companies.
We curated a powerful ecosystem underpinned by leading edge technology that focuses on the customer first while benefiting all parties in the health.
Five patients pharmaceutical companies pharmacies and doctors.
Patient benefits from greater access to medication, we've increased options.
Including newly approved medicines faster than ever before.
Doctors benefit by being able to prescribed drugs.
Kasper that bound that suggest the one hospital system.
Expanding their range of treatment options and the leading to higher success rates.
Pharmacists benefit by leveraging our scale to provide better pricing on the wider selection to more customers.
Drugs political companies benefit through expanded access to doctors and the patients with less geographical friction.
And the ability to sell products through multiple channels without relying exclusively on our hospitals for sales.
Well my mum benefits too.
By being able.
Some quiet products at lower cost and also revenue generating services to pharmacist.
Pharmaceutical companies.
We're well positioned in the health care industry within an evolving regulatory environment in China designed to ensure integrity data security and.
And our nation as we enter the fourth industrial Revolution in this dynamic market.
We are confident that these changes will provide all companies, including 111, a more credible environment to deliver value to our customers and they say Oh, there's while supporting the government's desire to reduce.
And the cost of health care, which is aligned with our investment in the platform.
Even without the reducing the cost by leveraging technology.
Right.
Before we got into business performance I would like to briefly talk about the current regulatory environment.
The trend of the last few weeks various news outlets have reported over 40 instances, where the Chinese government charge to companies with violations ranging from antitrust so appreciative of data security.
On the surface these actions might be perceived to have short term risks and uncertainty.
But we believe that these policies will help spur innovation in the long term by curbing anti competitive practices and the leveling the playing field.
These changes will provide all companies, including one by one a more equitable environment to conduct business.
Delving further into the details of the policies.
Our understanding that the government's intent is to address the following.
One anti monopoly concerns of one company, becoming too dominant in the industry.
Two.
And it's a competitive business practices.
Such as requiring merchants to sell exclusively on a single companies platform.
Three.
This is about stifle innovation by preventing smaller regional players from competing with large conglomerates.
Full vast.
Last amounts of sensitive data being collected without oversight or a uniform set of governing standards.
Five income inequality.
And the lastly, six the growing cost of health care.
The only category that pertains to one by one basis.
Uh huh.
Certainly on the government's desire to reduce the cost of health care, which also aligns with our goals.
I believe that everyone deserves access to affordable health care, which is why we have developed a platform aimed at reducing costs by leveraging technology.
Lastly, our suites of enterprise solutions provides small and medium sized businesses with the technology and tools to improve and expand their businesses.
Our nationwide footprint also provides access to quality health care services that were previously unavailable to consumers in smaller rural cities.
Although my mom one has already grown significantly since our IPO in 2018, a vast opportunities for growth remain.
Well welcome policies aimed at containing unfair practices and allowing all companies that equal opportunity to compete.
As such.
We view the recent regulatory actions as a tailwind rather than the headwind for one more month.
Yeah.
Moving on to our recent performance.
We continue to achieve exceptional results with net revenue in the second quarter, increasing 87% year over year.
What are your billion RMB.
Marking the 12th consecutive quarter of year over year growth since our IPO.
Our <unk> segment continues to deliver excellent growth accounting for $2.9 billion RMB.
Total revenue up 19, 9% year over year.
To further.
In support of our objective to diversify our revenue stream will have same growing demand full blown my mind service offerings, which include market placement services online medical consultations.
Cloud and E prescription services digital marketing.
Pie chain management and others.
We're pleased to report that overall service revenue grew 125% year over year.
With B to B service revenues totaling RMB $16 million, representing a 397% year over year increase.
Such non-GAAP net loss attributable to ordinary shareholders as a percentage of net revenues decreased from four 9% in the second quarter of 'twenty 'twenty, two or three 9% in this quarter, which shows our continued progress towards profitability.
Costs for Q2, 2021 was primarily attributed to an increase in R&D and technology expenses.
These expenses are expected to grow at a slower pace going forward.
Yeah.
In addition to growing our top line.
We are laser focused on growing our margins gross.
Gross margin for our B to B segment grew 120% from Q2, 'twenty plenty mentally from optimizing product categories, improving and our supply chain and implementing fast tools to improve efficiency of various business processes.
We expect this trend of margin growth outpacing revenue growth to continue as we keep making strides towards becoming a profitable.
Other key initiatives for improving gross margin include enhancing our supply chain infrastructure and expanding our partnerships with.
And a global pharmaceutical companies.
In conjunction with our efforts to improve our margins. We also continue to make strides to improve internal operating efficiency.
As a percentage of revenue, both the selling and marketing expenses and general and administrative expenses.
The mass decreased sharply in this quarter.
Additionally, we implemented an algorithm that enables deliveries of high velocity products.
Which has significantly improved the efficacy the efficiency of each warehouse and the lower the labor costs.
Although.
Operating expenses increased to.
323 million RMB for the second quarter up 82% year over year. These outlays were purposeful with a strong emphasis around investing and improving our proprietary technology in areas of digital health.
And our smart supply chain technology.
As evidenced by the 18 patents we have secured in these areas.
By doing so my mom one has laid a solid foundation for a healthy long term growth as we move towards our goal of transforming the health care landscape in China.
Latex.
It should also be noted that these operating expenses thresholds I expect it to have peaked for 2020 one.
We're also further developing our online and offline digital marketing capabilities with the embassies, enabling a pharmaceutical partner.
Trying not to promote new and existing products. This.
This includes our new digital marketing tool Hawkeye and tunnel that connects pharmaceutical companies pharmacies and patients directly to promote high margin specialist specification that skews.
We also leveraged.
Not different capabilities already developed from B to C model to promote sales in our B to B model.
Our proprietary marketing and education tools, such as live telecast E causes and online shows are designed to a quick pharmacist training to facilitate.
Online consumer education.
Our robust smart supply chain has always been one of our core strengths.
In the second quarter, we expanded the number of partnerships with domestic and global pharmaceutical companies now totaling 381 direct sourcing.
That's up 47% from 259 partners that you had prior.
Five sourcing directly from multi masuda go companies, such as Eli Lilly Novartis, Oman, and the San Jose we have created a more efficient supply path.
Leading to increased.
Profits.
Meanwhile, we continue to strengthen our supply chain infrastructure.
Including expanding our fulfillment capacity.
Today, we have eight fulfillment centers strategically located to maximize efficiency, which enables us to deliver to customers.
Increases in more than 890 cities within 24 hours.
To meet the growing demand for our services, we plan to expand to approximately 243000 square meters.
Fulfillment capacity towards the end of this financial year more than doubling the.
<unk> space, we had at the start up of it yeah.
While this will increase our fulfillment costs in the short term the investment will position us for future growth.
We have also increased the market coverage by my 1% to 65% Y O y.
They are mounting a high average revenue per user.
That's the end of the second quarter of 2020. One we cover 365000 pharmacies in our network, which is up from 260000 pharmacies one year ago.
Moving forward, we do not anticipate.
To achieve this will be we do not anticipate that we will be adding a pharmacist 12 network at the same rate as we're having the pasta given that we're already covering about two thirds of the total market.
However, we will focus our efforts on growing and establish the relationships with our existing customers.
Dissipate during the second quarter purchases from existing customers comprised 95% of the total revenue, which demonstrates our customers high level of loyalty and satisfaction.
Okay.
While our <unk> segment is not yet achieving our desired expectations.
Short term.
It remains a core strategy given the overreaching market trends and our commitment to provide access to affordable health care products and services to patients nationwide, including innovative medications and therapies that would not be available otherwise.
This includes upgrades to our one clinic platform.
We have completed the build out of our full medical product line.
Which includes a patient education portal.
Marketing tools digital representatives.
Doctor patient management platform and an internal Internet hospital.
As in.
There are currently hold about 20000 doctors using our platform to connect with and provide online consultation services to patients nationwide.
As some of you may be aware there was a large disparity in access of a health care across the country and the one more month.
Hospital to play a part in bridging that gap.
Yeah.
All one on one drug commercialization platform has made solid progress in providing patients with innovative therapies.
Such as Eli Lilly, Felicitate pulse and Xenial, which.
[noise] treat diabetes severe plaque psoriasis and metastatic breast cancer respectively.
Well that's novartis is.
Concentrix, which trades plaque psoriasis.
Sent office do pick scent for the treatment of academia.
Okay.
Finally, I'd like to provide an update on the exciting progress by month has made around our new initiatives that will further our growth strategy.
We're excited to achieve the milestone eclipsing 10000 stores across China that have joined our recently launched digital franchise.
It's interesting.
Which we branded as one health membership rewards program.
This exclusive loyalty driven program features an annual fee and allows members access to privileged benefits, including use of our centralized procurement and our suites of a digital.
<unk> needs.
Well as educational materials to help these pharmacies manage and expand their businesses.
But do you like it and the overwhelming response by our network of pharmacies and we plan to build upon the early success of this program by offering a larger selection of products and expanding our services.
Lugo friends.
Beyond these highlights we continued to strengthen our team.
Providing innovative services and capitalize on our technologic technology enabled infrastructure as our business grows.
We're focused on not only growing our topline.
So it is also improving our margins.
We're confident that our leading position in the health care service sector, along with industry tailwind position 111, well for continued growth as a way to transform health care services in China, and ultimately deliver excellent value to our shareholders.
But finally I would like to thank our shareholders for their continuing support.
With that I will hand, the call to look to walk through our financial results. Thank you.
Thank you Jamie I'm moving to the financial section on Slide 13.
The P. P T. We have posted on our website.
You can see the details of the second quarter 2021 results on slide 14 to 16 of our penetration.
I would like to find out a few keeping this in our financial matrix.
On year over year comparisons.
Numbers.
After RMB unless otherwise stated.
Total net revenues for the quarter grew 86, 5% to three point okay.
Which was at the higher end of our guidance range.
Our people.
Drab second when revenue.
I grow 99, 2% to $2.9 billion, reaching a new record high for second revenue in a quarter.
Our <unk> segment revenue was down 23, 9% to 127 billion year over year.
The decrease in our B to C.
Revenue growth was primarily attributable to the Q1 and Q2 of 2020 be unusually strong quarters for <unk> segment, as we were selling higher volumes academic related ppe's.
We expect this downward trend will be reversed as we launch.
Our initiatives to accelerate the growth of this segment.
Our <unk> gross margin was three 8% up from three 4%.
L P to see gross margin remained stable at around 20%.
The improvement.
Sam Martin of <unk> reflects our ability to continuously improve the margin while maintaining substantial top line growth.
Overall, our gross profit rose by 58, 8% to $134.6 million.
And grind the combined gross margin was four 5% down from.
Five 2% a year ago.
This decrease was primarily attributed to our <unk> segment growing at a faster pace than that.
Peter C segment.
Total operating expenses.
For the quarter were up 82, 2% to $323.4 million.
As a percentage of net revenue total operating expenses for Q2 of 2020, one decreased to 10, 7% compared to 10, 9% in the same quarter last year.
Two months.
Sensus is a percentage of net revenue for the quarter was two 8%.
Up slightly from two 7% in the same quarter last year.
This was mainly attributable to the costs associated with opening new fulfillment centers and upgrading our existing facilities to support.
For our growth.
These new and expanded facilities reach full capacity, we expect the fulfillment expenses to decrease.
Sales and marketing expenses as a percentage of net revenue for Q2, 'twenty one were four 4%.
One from five.
And in the same quarter of last year.
G&A expenses as a percentage of net revenue were one 7% down from two 4% in the same quarter last year.
Technology expenses accounted for 27% of net revenue up from one 1% in the same quarter.
Precise here.
This was primarily driven by an increase in the number of personnel and I M D and <unk> teams.
We believe that continuing to invest in our team and technology and our service offerings in the area of digital health Big data and smart supply chain will strengthen.
Our market leading position.
As a result.
Non-GAAP net loss attributable to ordinary shareholders in Q2, 2021.
118 minutes.
As compared to seven to $8.8 million in the same quarter last year.
Okay.
<unk>, 439%.
Revenue down from four 9% a year ago.
As to the guidance for the third quarter 2021 on slide 18.
We expect total net revenue to be between $3.31.
Counted.
Two 3.5.
Five 5 billion.
Representing a year over year growth of approximately 40% to 50%.
In addition to growing our topline.
We are laser focused too.
Growing our margins.
We expect the trend of margin growth outpacing revenue growth to continue as we keep making strides towards becoming profitable.
It should be noted that this outlook is based on the current market conditions and reset the company.
Current and preliminary estimates after market and operating conditions.
As consumer demand, which are subject to change.
Yeah.
Please refer to slide 21 to 'twenty three.
Next section for our selected financial statements.
A quick note our cash position.
As of June 30, 2021 we had cash and cash equivalents reached a cash and short term investments of $1.2 billion.
Largely unchanged from March 31st point in 'twenty one.
Yeah.
This concludes our prepared remarks, thank you.
Operator, we are now ready to begin the Q&A session.
Yeah.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound in high school.
Once again, if he wants to.
Christian Costar.
And number one on your telephone keypad.
Yeah.
[noise].
Yeah.
Yeah.
Yes.
Your first question comes from the line of.
Shipping phones from China International Please ask your question.
Okay.
Thank you, Steve and thank you for clinic.
Congratulations on the sampling program.
Cool.
Terry.
The person is.
Well argument.
Health care.
We've gone through.
Several really important Harvey Mercury.
For moms.
So.
Laura.
What do you think I'll try to frame policies.
And how COVID-19 bursaries or even through the company.
I'm not sure from Carson or wanted.
What are the primary factor it would be hard drive gross profit growth.
What will be the main growth driver.
Okay.
Hum.
Hum.
No.
Gross margin Brian.
Yeah.
Yeah. Thank you when she comes out I think I'll take.
Your first question with regards.
Sure.
Uh huh.
The policy.
In the recent months.
I actually spoke.
A bit about it in my script and obviously.
Especially in recent weeks, we have seen a lot of those.
Development.
As to the policy area.
As I said in the past and I'll turn the call earlier that you know those policies are more.
Intending to address the anti monopoly they anti competitive practices.
Practices et cetera.
Yes.
Obviously, the government has great ambition to cut the cord.
Cost of health care.
You know that is not related to us as far as we're concerned.
We like and welcome those policies because.
And the business to help.
The government to reduce the health expenditure.
Move on to make things more transparent.
And we want to digitize.
The overall health care industry.
And then obviously with our technology.
Technology enabled platform.
Wait we're in a position just to do that and so on.
The anti monopoly and empty.
Pat It seems about practices.
That is really music to our ears.
Because we actually believe that the industry needs to have.
Fair playing field.
And what the government is actually doing is to have leveled off.
All in the process of leveling the playing field so enable companies many companies, including ours to compete in a good environment. So overall, we view that.
Those policies as very.
Very positive it is going to be a tailwind for 111 instead of headwinds for Lamar.
Ill pass onto Harvey to answer your other questions.
On your second question regarding the.
The margin.
Yes.
Margins EBIT margin improvement.
Any comp from pouring actions that we have.
Half introduce more high margin products in the past quarter.
We also upgrade our yes.
Price intelligence system.
Optimize our pricing.
And we have introduced more direct sourcing from our pharmaceutical partners to upgrade starting towards the source.
And last but not list.
We are seeing a continuous improvement on our supply chain.
You can see that.
We believe those actions will continue to benefit us.
And our ongoing margin improvement.
And on your third question regarding the.
Continue our revenue and margin growth.
Yes, I think.
While we still drive our revenue our top line growth our focus will be on more margin growth on a more quality growth.
That we will continue to expand our supply chain network.
For example, we work.
You know.
<unk> reached more direct sourcing from pharmaceutical companies and also further expand our fulfillment centers to provide a better customer experience.
And Furthermore, we will continue to enhance our digital marketing platform and expand our high margin business.
She thought I hope and same question.
Okay.
They can be accomplished.
Can you talk to them about the company about promotional crippling per box.
Yeah.
Thank you rich.
Your next.
Question.
Line of zone beyond Citi. Please ask your question.
Yeah.
Hi, This is Dan. Thank you for taking my question.
That's right.
Hi, Dan.
On your partnerships.
Yes.
Yeah.
The second one is about the.
The membership program.
The program.
Okay.
Yeah.
And how much.
Oh, sorry.
True.
And what's your future.
Yeah.
Yes.
My first question is can you share more color on what's technology expenses.
Thank you.
Hey, Tobey I'll take the first and the third okay. So we're talking about.
About Oh partnership with pumps to a company is we have made tremendous progress during the past quarter.
Quarter as Julian has mentioned are.
And the report that we have reached a direct sourcing relationships with the 300.381.
Global.
<unk> pharmaceutical companies.
Compared to 259.
Q2 last year. So this is oh.
Quite a progress.
People know that it takes a long time to build such a direct sourcing strategic partnership.
Not only that we also introduced.
Just this quarter alone.
We introduced for innovative drugs into our cloud direct to patient management system.
Okay, including.
Duke from Sanofi.
No fee Tollefson, Eli Lilly with Nino also from United maybe as you can see that it's you know.
The first one we started was a solicitor preference from Eli Lilly.
I have three.
Wait our innovative drugs Oh.
No.
Selling them at all.
Unique platform also have.
Don't have an affinity for them and say okay.
So I.
We are accelerating the punishing for their pumps new companies.
We provide.
Provided we are really the choice.
For commercialization.
Also EMEA.
Take care have a third question.
You asked about are what Medtronic technology okay.
We are.
Heavily invest our.
Our technology team.
Our system development.
Okay.
Especially in the following areas.
Hawaii, So assortment management logging introduced.
Full category, so we need to decide what to be sourced internally of what to be offered by our JV partners or to be offered by our marketplace partners. So there was a need to be decided by our assortment management system.
You missed on price intelligence system.
Hi.
Kim that was a big.
Big data analytics.
Offering our decision support tools.
We continuously upgrade our supply chain.
Management system.
So we'd be able to SaaS tools. So this is why we.
The increase our.
Service.
Revenue, Okay, what fueled the SaaS tools for functional companies as well as for pharmacies.
Example, pharmacies, who have a CRM system.
Oh tool sales management system.
What is the way it would go the assistant for there for them to manage their.
Sales reps what have also build the diesel.
Arch team system. So why build a lots of systems is also reflected by 18 patents we have received.
Half year.
And when you turn the second question to harvested yet.
Regarding the one hand.
Project is.
A very strategic project.
It's also a very important part of our two b to C model.
There are now more than 11000 pharmacies have join one health program and.
Through digital.
Total franchise model.
And these pharmacies.
Pay downs digital services fee to use our SaaS based tools.
<unk>.
I am too and also SaaS based <unk>.
They are also enjoying the benefit from.
The centralized procurement and also enjoying a much more competitive price.
And this program as I just mentioned is a very important portion of our F. B to C model.
We are now connecting pharmaceutical companies.
Pharmacies.
On product commercialization and as well.
We are connecting those pharmaceutical companies through those pharmacies with the and patients or consumers.
Through our CRM tools.
And it becomes an online and offline close loop.
Thank you Zoe.
Thank you.
Gary and Congress.
Very strong revenue.
Okay.
Thank you David.
Next question comes from the line of Richard.
Please ask your question.
Hi.
Awesome.
Thanks for taking my question I got through.
First one is do you have any plans to further expand and also Patrick.
Okay.
And the second.
Bye.
Those tend to resolve your star market IPO.
Yes.
Okay.
I'll take the first question I think Luke.
Updating you on the phone.
The second one.
Yes, we are currently we have eight fulfillment centers.
In.
The eighth major cities.
Across the country.
We plan to double our fulfillment center throughput capacity in this year.
And also we will continue to offer a better logistic services.
Including country, we provide are within 24 hours delivery 890 cities and even the same day delivery in 12 major cities.
Luke.
Okay I'll take the second question.
Yes, we are still working on.
Hum.
Yeah.
Lifting in.
In the stock market and we're still analyzing the policy updates for the for the Star market. So we were just close and update the status. According to SEC rules.
Meanwhile, we will focusing on improving our margin.
Reaching profitability.
Which I hope we answer your questions.
Okay, yeah. Thanks.
And congrats again.
One partner and the first half year.
Yeah.
Thank you rich.
Yes.
Your last question comes from the line of Ginger Wong of HSBC. Please ask your question.
Yeah. Thank you management for taking my question and congratulations on the Mako boat program.
It seems here from HSBC.
I have two questions.
So also a question on the service related revenue, which had a very strong growth. So could you. Please help us break down the growth drivers that they do.
Do you think that this will become a significant source of revenue in the future.
And our second question is on the bottom line. So we can see that our logged out and then loss ratio has decreased significantly to a three 9% this quarter, but just wondering if our progress will.
Well, thank you very modest impact on our customers.
Yeah.
Okay.
Your first question regarding the so this is related revenue.
Yeah, we are offering services to our upstream and downstream panels, including.
The marketplace vendor services.
Online medical consultation.
E prescription services.
And digital commercialization.
Uh huh.
So companies.
And also supply chain management et cetera.
We will continue to expand our services offering with the expansion of our.
<unk> adds to BDC platform.
And also with the launch of more and more SaaS based tools in this <unk> platform.
Yeah.
And Ginger Luke let me answer your second question.
Putting all of our bottom line.
A key focus for us going forward.
Ward.
In this quarter, we have already made strides in improving our margin.
As well as improve our internal operating efficiency.
Now the efficiency came from manufacturers.
Showed our strong commitment and relentless efforts in optimizing our offerings.
In the area like pattern assortment management, better pricing be operations and our high efficiency of our BD team via application of smart tools.
So we expected to see continued improvement on that loss.
Our goal of breakeven within the next 12 to 18 months.
So I hope we answer your questions.
Yeah. Thank you very much management very helpful. Thank you.
Okay.
Thank you.
Thank you Julien.
As there are no further question that don't like to turn the call back over to the management.
Okay.
[noise].
Yeah.
Thank you operator in closing on behalf of the entire <unk> management team, we'd like to thank you for your interest and participation in today's call. If you require any further information or have any interest in that.
In visiting us in China.
Please let us know thank you for joining US today. This concludes the call.
This concludes this conference call you May now disconnect. Your line. Thank you.
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Yes.
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Helpful.
Okay.
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