Q1 2022 Mogu Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the mobile first quarter of fiscal year two.
20000.
'twenty 'twenty two.
Earnings Conference call.
At this time all participants are you may listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone if you require any further assistance. Please.
Two zero.
Thank you.
I would like to hand, the conference over to your speaker today, Mr. Vivian Zhang. Thank you. Please go ahead.
Thank you Hello, everyone and thank you for joining US today mobile is earnings release was distributed earlier today and is available on the IR website.
Spreads on more mogul dashing dotcom.
Well, it's on the business wire services before.
Before we begin I would like to remind you that this conference call contains forward looking statements within the meaning of.
Section 21 E of the Securities Exchange Act of 1934, as amended and as defined in the U S.
I was Securities Litigation Reform Act of 1995. These forward looking statements are based upon management's current expectations.
And the current market and operating conditions and relate to events that involve known or unknown risks uncertainties and other factors all.
Which are difficult to predict and many of which are.
The company's control, which may cause the company's actual results performance or achievements to differ materially.
Materially from those in the forward looking statements.
Further information regarding this and other risks uncertainties or factors is included in the company's filings with the U S Securities and Exchange Committee.
The company does not undertake any obligation to update any forward looking statement. That's a result of new information future events or otherwise, except as required under applicable Ah.
The cable law.
On the call today from mobile are Mr Shark, Chen Qi, Chairman and CEO and Ms phone she.
And then she'll controller.
Mr. Chan will review the business operations and company highlights followed by MS phone call discuss financials. They will all be available to take your questions during the Q&A session.
Now it is my pleasure to introduce our chairman and CEO. Mr. Chen. Please go ahead.
So it all because it turns out what would you all in our opinion.
Great.
Hello, everyone. Thank you for joining us.
First quarter of fiscal year, 'twenty 'twenty two earnings conference call today.
Or are you Tanya.
Yeah, 100, a year without trenching or since it's all totally got subordinates aren't going through.
Unfortunately, you're going to see the Danville, Oman, sabaudia with tissue boxes in that.
So what else you have told me it turns out.
She got all afternoon.
All year with a generally sandy you think she's a 500.
Yeah Bob.
During the fiscal year 2021 we successfully completed the transformation of our business and have essentially become a pure play live video broadcasting E Commerce company, which I'll refer to a L. We'd be moving forward during the past quarter, our Lotte E Commerce business.
Joseph tend to maintain steady growth the G M from Lv be increased by 14, 7% year over year to RMB, two 6 billion contributing to <unk>.
98% of the total gym, we during the period.
A lot of women junks this redemption.
That's kind of guaranteed income to listen to you from me on the giant you can go to the onshore drapes and half watching so young artists Barbara So what I would have two months, we also with US okay geez on GAAP.
And I've seen productions of course on the job conducting meet here, so I didn't hear it.
Shellfish behalf of Tusa from what wasn't something to me.
Did you just don't want going out for golf balls that Paragon towards you don't come door. There's all that we can go to a serious donkey.
So what are you done well money Jong sushi gosh. All this was on that and working with them now to walk you.
Youll see that like fishing, you don't see them for you about the juggernaut alternate the opposite.
Hi, Bose. We look ahead, we will continue to enhance the supply chain. So our platform on one hand, well further improve the overall quality of our platform by only offering called us that type of highest standards for quality control and gradually replace the products and motions that fall below the requirement.
On the other hand, we will continue to caito.
The consumption transfer whereby the younger customers by offering more options of newly launched fashion brands through expanding our product categories and in cooperation with more suppliers.
Our L. We'd be hosts who will continue to empower them. So a more effective and fashionable short video format and maintain a high.
Two retention rate and Apple by leveraging more high quality short videos to attract more users to our platform.
So it sounds like that's you're all familiar.
While no one can I tell you hands already could you just go into the sogo real itchy patterns. It was Jordan you are the trends.
So do.
We are seeing job wage impacts your golf Cushing block trading things, if we're going through.
For full guidance was last year.
Sure Joey.
While Jim switching made awful fourth until the home yet she's all the borrowers at the knee cartilage.
Cars with John cause of Beijing E D.
The user what's sort of interesting part.
Yes.
So that allows for Sundance survey that turns out mobile Dave if I could do that so that's all I have.
Sorry.
Okay.
On July 26, we completed the we completed the acquisition of pound jewelry saw technology Co Ltd.
I don't know that we refer to as free shot technology Mobile then officially on the.
Okay.
50, 962% equity interest English out technology.
We shot technology is committed to providing one stop and customized services or food online operation with brands from a wide variety of industry.
Whichever engines on clothing shoes, handbags education maternal and infant health food as well as cosmetics and skincare.
Its customers include well known brands such as Mimi Zara.
Hi, Sheila story teacher and Ely.
Its revenue has increased by.
Pinpoint four times within two years.
And mobile is acquisition, which added technology itself dressy strategic significance.
So are you lilliana.
Communism audience on castle, well known jingle, a dwindling a delay I thought.
What are the ones that Eugene Jamie.
So it wasn't her seahawk.
So she's on Pogo, Joe you sit home cooked Wichita, how can I wish you don't hand out in the Gulf Olympian pilot, you're going out the door and as you know so if you imagine she yeah, what would your bundled up in both hands went up green pie going yeah, one sometimes home in Chicago, So Paul what else against all odds of audience on addressing.
Yes.
<unk> will maintain to be a lot of sense without sungard for Illinois.
After establishing a lot of e-commerce business in 2016, it took us many years of experience in constant improvements to reach all time state.
We now operate a well established.
G B e-commerce ecosystem that.
That empowers our brands our supply partners through the integration of our transaction system customer service system and financial system.
E Commerce platform mogul has helped many traditional brands manufacturing and supply chain to successfully execute.
Actually it could just won transformation from offline to online operation.
And from traditional E Commerce life E Commerce models.
Thanks to our innovative and forward looking ecosystem well now you have mature capacity, so effectively service our brand partners.
Axiom foods Sogou Saccoccio civil months in your opinion be doubtful tore down call it home in the deal.
And as you see volume boat shows all done tariff, obviously teaming geology in Pi.
These are the all new shop in the World thought Oh Geez, you find things that have been done forever.
Whoever would you create a world without cookies she is without.
Hi, Karl.
Oh for them and that's the Boston Huh.
Cool.
Do you have positioned the way shot technology and bodies the expansion and full utilization of the to be service capabilities that we have accumulate accumulated over the years.
We shall technology will focus on.
And all of those brands that hope to operate online, but lack the technology and operational experience to find solutions to a cheap value and growth.
In addition, mobile will also wish more brands through ratio technology to further English all L would be ecosystem for delivering better services to our partners.
How do you do it also relates to sugar father and finishing.
Some people to jobs that they're going to cook.
But most of it until it usually gene pizza and so China yourself will help they go to Iraq, John you called out shoulder to realize saga again there.
We'll go to tablet and shame on me Roundup made Watson portions up.
They sell all our unrelenting confidence in our future business growth prospects and the rough calculation of our long term investment in western Mali, whether you.
Board of directors has authorized a new share repurchase program.
Our company is our sunrise to repurchase our a D. S began.
Up to 10 U S $10 million during the 12 months period, starting from the date of the announcement of the share repurchase program.
So the dual chamber pen figured out how to pick up.
With that I will turn the call to a phone Qi.
We'll go over the financial details.
Okay. Thank you shar centuries, it and thanks again to everyone for joining our conference call today I will now walk you through all subsequent to our fiscal year 2022 finisher.
We believe year over year comparison.
Just a way to reveal.
Great well performance.
Paul I don't know otherwise stated all percentage change I'm going to mention will be on that basis.
That's a review of the financial expense all Jimmy for the first quarter of fiscal year Tucson in 'twenty, two with RMB 2800.
<unk> 4 million a decrease of eight 2% year over year.
Our strategy focus has been on growing the GMB from client video broadcasting, which increased by 47% year over year to RMB 2000.600 million.
L D b.
<unk> for the first quarter of fiscal year 2022 accounted for 19.8% of the total G. M D.
During the quarter total revenue decreased by 36% to RMB 19, 2 million from <unk> 100, and.
So shifting to <unk> 5 million during the same quarter of fiscal year 2021.
Michigan revenue decreased by 23, 7% to RMB $65.1 million from $85.3 million for the same period.
Korea in Tucson, and 'twenty one.
And so I'm really attributable to the lower G N V from the heightened competitive environment.
Marketing services revenue, which is mainly generated from our marketplace business unit decreased by 64% to RMB eight 6 million from RMB 24 million.
In the same period of fiscal <unk>.
2021.
The decrease was mainly due to the restructuring of the company's business towards an lv be focused model, which involves more business partners, including LTV code and.
And their agencies, who would take a portion of our MAU.
<unk>.
Promotion function.
Financing solutions revenue decreased by five 1% to 11.3 million from <unk>.
At the same period of fiscal year Tucson in 'twenty one.
Due to the lower servicing fees on their own to use.
And I will now walk you through our major cost and expenses.
Revenue decreased by 10.9% to RMB $43.5 million from RMB 48.8 million in the same period of fiscal year, two something in 'twenty, one which was mainly due to.
The IPO related expenses.
Sales and marketing expenses.
<unk> by 28, 9% to RMB 44 million from $61.9 million in the same period for fiscal year, two 721, primarily due to optimize.
A big boost to spending on branding activities.
<unk> expenses decreased by 24.8% to RMB 21.8 million from 29 million in the same period of fiscal year Tucson in 'twenty, one mainly due to have called.
Optimization during the first quarter.
Michael You know 2021 does that resulted in an increase of.
Compensation payments during that period.
General and administrative expenses decreased by 1.4% to RMB $23.2 million from RMB 23.
Two 5 million in the same period of fiscal year 2021, mainly due to a decrease in the allowance for doubtful receivables.
Amortization of intangible assets decreased by eight 2% to RMB $64.7 million.
Hi.
17, 5 million in the same period of fiscal year 2021.
Loss from operations was RMB 19, 8 million compared to loss from operations of $94.9 million in the same period of fiscal year 2021.
<unk> loss attributable to more ordinary shareholders was RMB 19, $5.5 million compared with a net loss attributable to ordinary shareholders.
I mean 88 point to 19 in the same period.
Fiscal year 2021.
Adjusted.
Now EBITDA was negative RMB $25.2 million compared to a negative <unk> 17 point for them getting in the same period of fiscal year 2021.
Cash and cash equivalents restricted cash and short term investments will be $776.
Did again as of June 32021, compared with RMB 803.1, you name it.
On March 31.2021.
You'll need the project, we continue to successfully execute on our business transformation towards an lv.
Three people cost modal.
From a financial performance perspective.
Strong user retention rate and the best validation of our Lv be focused strategy.
We have clearly reached an inflection point and you got the N V business will be a main growth driver going.
I'll be before it.
Investment innovation technology represents a continuous effort to expand and utilize all capabilities to provide services for business customers.
In addition, the increasingly challenging market environment may impact a couple of minutes.
Going forward in the near term.
However, with a disciplined financial strategy.
Strategy of investing and serving all brands and merchants on our platform, while diversifying our revenue structure to gain incremental growth.
We will also continue to optimize customer.
Position core and overall operating efficiency.
We remain confident in the long term growth prospects for obviously.
So with that I would like to open the call for Q&A section.
Thank you.
Thank you.
A reminder, if you wish to ask a question simply press Star then the number one on your telephone keypad. Once again that is star one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.
Okay.
Your first question is from the line of Charlie Chen from China Renaissance. Your line is now open.
Uh huh.
No.
And two what do you mean, you're going to you're going to just show a kind of old golf, So I'm going to show not just at that juncture that ginger ale.
And that doesn't always I.
That shouldn't be a judge Judy the phone call, which I know Jay you shot just something that you don't want doing his IPO hot vehicles today, yeah, well I'll close on Jake.
Oh cool I got hooked up with a little child Alpha just you just yet.
I'm, sorry, if I'm in a familiar likes you treat you like getting shot Jose Costa with ideal wish it that's a magazine.
Oh <expletive> I shouldn't that high.
So that you can shop, just eagle lunch and I hope, you're all going to just sit quite Egypt reassure. What goes you can find it just show up and then get that usually I'll get out to you. Josh is that you got to take off what are you going to say so called social channel age I'll close with just a.
Austin Chalk C pulse, Oh, let's say wage Egyptian tied towards soy you shouldn't be on the cultural yeah cause each element I'll get out just a coffee it should that should actually T. J just.
Queen Anne do you got to also vocal about your P O L J.
Do you get to keep herculean gets you that not really shot childhood showing that the Chinese are going digital.
It's really a fun time they'll go.
There's a lot of nice it's really all that volatile also led towards that for the year.
And phase, yes, Thanks management to taking my questions I have two questions. Here first one is regarding the competitive landscape in the announcement I noticed that.
Your management.
You mentioned that the competition environment actually increasing so how does stops environment change will impact the operating matrix of your company, including like user acquisition user retention and also other I'll forgive matrix, how does that impact the company's financials.
And also how does the company believes your competitive strengths will be changed or remains going forward. So that's the first question and then my second question is regarding the acquisition of Rea shops as I believe the company has been making a lot of airports.
That shows a consolidated integrated can do supply chain by connecting to Kols fans of brands together. So how will raise all fit in this integration and how can a ratio will help the company to expand the business or do more truth to further discuss our strengths into companies.
And the badge. Thank you.
Uh huh.
Well it was Europe with under the Eagle India.
One of your Jinan job to do that.
So Tim will do the SEC sitcom.
Cohorts, we all can do.
On June.
Yeah, I think the Dearborn.
Sure.
Uh huh.
Okay I'll translate now.
First to answer your question about the intensified competition.
This is because.
Market participants is very often.
How do we think about this market so many more players.
Entering the market.
Austin This is hassan.
Tornado through border.
Fortunately on an email with food home.
Bob.
Thumbs up.
LNG Awards.
So both are true.
This message here.
Jaguar Jaguar the Kingdom, where if you end up you Joe earlier months away to Pink, Idaho home when you go to the entire tools Oh.
So I hope with what are you going to do them. All so you summed it up well be looking hard to agenda juggling Dunhill had been adjusted here.
As more and more kols kols or host entering the market. They compete on price. So as a platform. We also compete on price with other platforms.
So let's see.
Uh huh.
And you'll see also that the driver I think to sit down and targeting them to any other.
Uhm.
Michelle.
No.
Oh My God, you have some place with ICD 10.
The judge of being shot.
And the beautiful thing is we are has oh that's come back.
Hum along in Shanghai.
You don't put it on your own portal.
Cause it to kind of your fault because we don't have been the trends are.
Thank you Shannon.
So you got that supporting our front, yes, we are entering what I'm, suggesting is also the tender.
Shinhan, India Castle.
I need a nuance I'm gonna have yet been diagnosed with them they've got a dummy shell.
Other than that.
Testified competition on price or the cost.
Our user traffic is also increasing our internet users.
The growth of Internet users started to slow down.
The price to gain traffic has seen.
Increasingly fast.
So it's all in the Gulf of the Youll Sudan.
Sure.
So what is the fed order in their well known shipboard Dol on total the dollar so a month.
Do you see the helium.
And even in Australia.
Tobey I sort of bundled with the ball.
Going in Santiago.
So on the island do they come in.
Uh huh.
Some of them would you obtain those hunting regardless of what he has on.
Would you ever want to go see it.
He's on his or her suit Sunday, so the P&L at all.
That would be something that.
So for US all comparative want you as one of the that's the earliest start us off the L V B business.
We have we're.
Knowhow, so we know the host and the merchants.
And the suppliers bode well for a host that the cost of doing business on our platform is lower than others.
Being a formula of how just someone will do the pool.
That's considered to hear you all for coming.
Uh huh.
And you won't feel the chancellor, yes, as Toyota walking I'd, even say go to sleep.
We are truly a pharma and I think youll sort of Hudson and both oxo woken up and are you a buyer or you got plenty that sundar.
Does that kind of a company's strengths are at.
They all users are users.
Because it's very loyal to our platform and they have been with us for a long time, so I'm always much higher than other platforms, so complying with Uh huh.
So this combined competitive advantages help us to maintain a reasonable cost.
By the intense intensified competition in the space.
Oh, the whole where do you see are the ones you just sort of on a pro.
So where does he goes with our cozy.
So you are going to put out.
Good to see you sell them or would you the people who are sick.
It's in engine how much.
It has a 20 year young you're buying children, because it's fine yeah, I'll say it won't come on final data.
Hum.
MAU, who joined Jean Philippe Testicles zones, you'll just sort of comment.
Just so.
Now I'll answer the second question about the ratio of acquisition. So they saw was founded by a group of engineers that that was from them will go.
2.5 years ago. So they left mogul to found in Russia. So also mobile is one of the Angela and West Coast.
Okay.
They started under her mobile phone do alone.
Is it the gunshot you go home from the granting of the Oklahoma jobs go out.
With a culture and EMEA.
Absolutely yes.
So you guys Sunday, Jamie there's even a shuffle does he go too so that's all right.
So the ratio of team and the local team we share the same region in value. So during the past two five years, we have been cooperating.
The and keep it and kept kept a close contact.
Our hotels.
So what would you tend not to go of course, and as Omar or materially at all Chris on board of Oh.
Someone who choose or E C.
Yes on the screen in the Mi.
No.
I'm doing a trial now into a free online it's easier to use with no need to wait a controller chip package should see going forward.
And Mogens history, we have accumulated.
My in depth E Commerce technology.
At Wassa E Commerce technology.
Waiting and operational Knowhow, so the way shot wish.
We shall team they have used the same technology.
Knowhow to service many many brands.
The whole, India and I'll do so there's a lot of cool pool.
Children's home dose passing does it go up.
G as of yet.
So you talk to some of her mujib C&I sounds fine.
So here are some jobs that were most of our Seo or how many channels high either.
Would you that came to us all.
I'll see some charge offs on gateway through.
Let me start on his golf, where those are.
But what would you say.
If you can kind of description part.
Hi, Ben.
What would you do.
You don't find me I saw the CLO market for that dollar change have you done that or you for what could be done with adoption.
Yes.
We saw customers are internationally at all or are the biggest brands.
In June now internationally.
So that provides us with some I think with a lot of synergy because the traditionally more.
Logos Cosmos and brands are small Amit side.
So.
With the acquisition of Russia will well be able to expand into.
And child brands and that was hard to.
Acquire.
The whole thought of as a solo.
See what patterns apparel like losing a day.
She had a floor. So we also it's useful for what could it mean for.
So that how does the so.
Turns out to women's and uncles that I saw also logistical quake in California.
That ones yet.
So we thought it would.
That's all very soft revenue is from service income so that will diversify our income stream.
I thought that was probably more with income stream.
Two more which will be more healthy going forward.
The whole civil I'm, telling you for the.
Mobile doesn't go to <unk>.
I totally agree I think the outcome for a very long.
I really hope or my Cleveland Wells with I believe the option has a way of an inflation parachute Ivanka door does it go.
But what was she that'd be Josh you can sort of adults who showed up.
See there's an awful lot of I'll call it a bubble.
People either to the Gulf War comparator in Telcel.
Above all it can tie the two hard to know for those of dialogue.
Yeah.
Since the acquisition ratio will be able to service all its 16 brand on mobile platforms, such as our public private traffic environment.
That's where our casting and cross border business.
So outdoor with telco the seagull they bought them yet.
And back to Kandahar surgical failed to see her to be there to help with that.
All of them they used to be there that could prevent you from Europe, where you'll be down part of the bundle.
When he took a bunch of Europe without issue.
So going forward.
Right.
The revenue breakdown, we will have to get to see and to be components in the to be part we expect to see very fast growth.
That's all about.
Acquisition.
How does she said she I wonder that going through the whole I guess you didn't get your take on what actually ship.
Charlie.
Yeah.
Oh boy, though we can have the next.
Next participant.
Thank you ma'am once again, if you wish to ask a question simply press Star then the number one on your telephone keypad. Your next question is from the line of if you will get you from <unk> Securities Your line.
Got it.
Go ahead Tom.
Oh, yes.
Sure sure.
Oh Wow.
Yeah.
Run off.
My mom mogul Zhejiang.
Hello.
Oh God willing to manage Gong XI falls off.
And also India, Hong Kong retail I'm, showing my mom tell you. It all goes to Jay you bought down there in their social that someday.
I'm sure I'm sure in oncology infusion with Goldman Sachs.
We can do that.
I'll translate the question first so there are two questions first.
This isn't just about the risks within our regulations on anti monopoly. So it was the retail regulation of alignment do it.
That's a management I see more opportunities for companies like Google and second question is about.
It's about can management elaborate more on the way.
Acquisition, because this is quite a major deal for the company.
So you wouldn't be.
Yeah.
Oh without either you or Glenn Shockwave of your funnel is up.
So he'll woman.
John Baugh Sinhala U T D.
Some of the playoffs is going back to.
That's almost an hour to work well answer all of them yeah. So if at all.
As you know there's only a hustler.
10 year olds in them to pilot and you guys, just how you're sort of doing when it comes to that I saw it two ways.
Bobby This is home.
First of all I'll answer the question about anti Milo PV regulation. So we're still.
We sure are confident about the internet space and we think it will be one it will be the fastest growing space globally and it will provide us with a lot of tubing piece.
The whole Europe, goodner legionella funnel in blood.
Sure.
Jean.
Machine where are.
So you go through the framework.
So you know, which is actually a fixed coupon of like comedy central.
So they shipped at home.
Yes.
So from my personal point of view the anti monopoly is about monopoly behavior not about that.
<unk> of the companies.
Could you Oh do you see this you know kind of on that deal.
Some good ideas.
Siddharth what had been a conduct headphone glaucoma machine. So you got the Sudani those oiler Carnival also leehar I'll do them in reality.
With more precision to that.
To vehicles.
And you see how the harder you see.
So I think going forward.
The Chinese Internet market will be more open and which I think will be beneficial for all the participants in the space.
And for US I think it will benefit us as well.
That's when relying upon the lessor.
Yes.
Thank you Julien.
What reality assumption actually.
Yeah, So the theater.
Good job.
Uh huh.
Oh yeah.
That's the majority of peanuts.
Well my year, Don Duda yourself, which we should see our tender lifetimes.
Sure.
Yeah on the holiday portfolio.
Well since we have somewhat of a dose of that C, which are actually all cold weather.
Yes.
And on the other hand as one of the major E Commerce platform in China, well after 34 platforms to be to.
To be heavily regulated by the Chinese authority, so that will.
So for US will work best in class.
Off to comply with the regulation.
And so when he was almost all of them are changing.
So the 300 was thinking Oh tier women's and that's yeah. So that their team doesn't go a quarter either those two.
Okay.
And once they saw that they got so so so yes.
Yes.
<unk> got her daughter.
Uh huh.
So when he talked about job deceive.
But I don't see us at home gallium I can find out that you're going to see Jim.
Well hi.
Comfort now optimistic about our outlook.
We have been complying with the law and regulations are doing a whole history. So regarding the regulation I think it will benefit the market and also small.
Okay.
There's a whole bunch of them.
So I don't think they're going to choose a contract where you saw the Sunday jobs Chancellor.
Hum.
Just to go Sue them on Sunday zones, and gather your pricing are you somewhat have the both of those.
So would you go to the other.
Joe It was on a kind of audio so you're telling us so.
So we I see your illegal to feed a marketplace that I mentioned, the mobile operators in Europe going towards your goal.
To be there for as long lived in a solar who not only are the ones yet to go.
They got thrown out there you are.
You always hear marketplace.
Okay.
So for the Reis acquisition I think we have a I have a elaborate a lot on this on this topic so the ratio.
That acquisition, it's a very important strategy.
Sure It is for mobile.
Diversify our revenue stream.
So in the past well focus on the two C at market going forward will add that to be.
Income and revenue stream so that will.
With our revenue stream and so it will help us sustain a healthy growth.
So hope was going down.
Yeah.
Awesome.
We can only digest.
The courtyards and know how to talk about it.
Fully along those theatres with houses are not fiber <unk>.
You guys are kind of a chunk or the Shelby machine Hi, you hold total yogurt father will earn income and the timing that EMEA has been more ETE Chenzhou taught US is one that you got from your industrial fit them out of Europe.
The mobile me Shuang chiller and chiller.
Chiseling that youll consider tedious.
Thank you.
Susana equals unethical Daniel Murphy at Soma, So go retail because either they don't try to time you called out.
Hi.
With our.
In the past 20 years, we can see that the to see consumer brands have.
Uh huh.
While we rapidly.
In terms of scale and global development going forward.
We want to help them go global and we want to participate in this trend and to service our customers.
Yeah.
And that's why.
Yes.
So you didn't catch it.
Yeah.
Yeah.
Once again, if you wish.
I'm, sorry, well once again, if you wish to ask a question simply press Star then the number one on your telephone keypad once again that is star.
Sure one on your telephone keypad.
We have a question from Charlie Chen from China Renaissance. Your line is now open.
Oh, yes, yes, yes.
Yeah, Glenn anytime takeaways, you can equate to Oh, well mutual cut though so that you should take that you're doing that just to take our Lv Vijay Kumar that Jeremy That's also a cause I'm Joel Beach Oh My.
Yeah. She thought it was a job Aqua Shanghai Ginger watching Asia, what she showed hatch away a shadow. So of course, that's a way of life that you get you do they.
G. Yeah with the Jimmy that sometimes Youll really shed a G T. The Shanghai jumped he was supposed to die a tour quadriga Kols that you could shoot out of Chicago, That's all childhood as a so called codify them into Asia.
Jimmy I'll go a joke to acquire that Patrick our Lv BT acquired that you have it I think that's also okay.
Such that perhaps you guys aren't you.
No. They are finding shots. So my question is related to the Oh VP business, Jim via growth, which we see in this quarter is kind of slowing down from previous quarters.
I'm, just wondering what kind of strategy or considerations.
Management has been taking to improve the situation, whether it's related to our increase the pool of kols or are getting more branch onboard or increasing.
Increasing the pace of new user acquisition is a central so what kind of strategies.
<unk> the.
The company is taking to try to improve the GMB growth going forward. Thank you.
Got it.
What have you.
We're going to see that.
Oh yeah.
<unk> seen out of Europe.
Dean.
As you know going yeah hold on I think a bunch of them.
So he's not all of them right.
So what are you.
Can do without going forward.
The June either because of weather.
Some will pay off by the.
You do not have them without the Boise Hussar, a hole and how many you parse it pay off in order to see nothing but I'd say, they're convinced they don't suddenly either you got tons of law.
She Saddam Sulemon cuisine.
Syngas sundry income on what he does something that's easy.
Uh huh.
Uh huh.
Cause rosin Coleman.
How do you view that he got Yahoo, should've caught out.
Most of the deals done enough time to towards that got him on his songs.
Yes.
So you.
No.
So I think the jobs.
So if all that.
Yeah, Yes, it comes either.
Hmm.
One of them.
The hippie jobs.
This is Don a little bit on Colorado in Europe, with you've got a cookie right.
Yes, you know it's also a nice proof of concept of visa Europe for your bubble to Hudson.
And how does your son, who the that's what the goal going deep and then of course, you can do or does it go to political.
Uh huh.
<unk> continues to change it because he is sitting for bulletins in country or where you see it.
Hello.
You got that just I know you've done some genuine Korea kind of issue.
Right.
I see.
Going forward, we will continue to leverage.
Competitive advantages so and for.
For the strategy.
There are three main points first oh.
Our operational capacity is great the kom going.
Going forward well continue to incubate more Kols, Oh boy I have different categories and also to support all the top kols.
And then we will develop a new piano long tail came out and second is the category expansion will expand.
And expand to new categories with higher gross profit margin.
We have we currently have a team that is right.
Working on expanding to new categories and this is users. So our existing users are very loyal to our.
Platforms, but we still think that's.
Two to grow so well well well try to attract new users that they have never tried casting shopping before and.
And so for example, well worked with other platforms to acquire users.
But with.
Relatively low cost.
For example, we have been working with Tencent video's too to promote our platform.
I appreciate it.
Got it.
There are no further questions I will hand, it over back to Mr. <unk>.
Ryan for closing remarks, Ma'am. Please go ahead.
Sure. Thank you and thank you everyone for joining the call today.
If you have any further questions or comments, please don't hesitate to reach out to any one of US here at logo that this concludes our call today.
And with that this concludes today's conference call. Thank you for attending you may now disconnect.
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Okay.
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Hum.