Q3 2021 BlueCity Holdings Ltd Earnings Call

Good day, ladies and gentlemen, thank you for standing by and welcome to the Blue cities third quarter 2021 earnings conference call.

All participants are in listen only mode.

Later, we will conduct a question and answer session and instructions will follow at that time.

We are recording today's call. If you have any objections you may disconnect at this time.

Now I will turn the call over to the <unk> IR manager for the company Miss will be supposed to be.

Thank you operator Hello, everyone.

Welcome to blue since the third quarter.

Earnings Conference call joining us today are Mr. Lima, our Chief Executive Officer, Mr. Alfred <unk>, our Chief strategy Officer, and Mr. Jean <unk>, our acting Chief Financial Officer.

We released the results earlier today. The press release is available on the Companys IR website as well as from Newswire services.

This call will also be available in a few hours on the company's IR website before we continue. Please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation 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 expected expectations expressed today further information regarding these and other risks and uncertainties is included in the company's public filings with the S. E C. The company does not assume any obligation.

<unk> to update any forward looking statement, except as required under applicable law.

Note that during today's call management will also discuss certain non-GAAP financial measures for comparison purpose only our GAAP results and the Reconsolidation of GAAP to non-GAAP measure can be found in our earnings press release.

So please note that unless otherwise stated all figures mentioned during the conference call.

Chinese I'm, okay with that let me now.

To our CEO Mr. Mark He will speak in Chinese and I will interpret his remarks English after that Rcs all Mr. <unk> will take over to discuss our growth strategies.

Our acting CFO, Mr. <unk> will provide details on our financial highlights. Please go ahead.

She says it all.

Guidelines, which are in our Union decides how we exited <unk>.

Thank you and Hello, everyone. Thank you all for joining our earnings conference call today.

Sometimes you don't.

Tom.

You'll have time here.

So I know what he get table lifetime foothold in washing put on you know what you got out alcohol the tender in the third quarter, we continued to exactly right our growth strategy and reach our product offerings optimized operations and enhance our user experience. We also further improve the company's revenue structure.

Other result, we made multiple stage of.

Solid progress across our strategic priorities.

Could you comment further.

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AUO of Blue cities apps reached the seven 5 million up 19, 3% year over year, along with 57, 1% increase in our paying users.

Similarly, our membership services and Haig House mentioned strong momentum with 93, 1% and 103, 36.8% year over year revenue growth respectively.

This result, fully demonstrated that our strategies of diversifying our revenue structure as well as creating a new gross angel for the company have started to bear fruit.

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Essentially it will go down.

So what are your thoughts that alcohol, so it'll be a more sustainable manner.

During the quarter, we continued to accelerate our product innovation and optimize our operations to provide argue there's with a more efficient way to get connected and enjoy entertainment content. Some features have already gained popularity among argue.

For example, the revenue from voice chat room, which we introduced last year have gone too dangerous gross amounts to Mount spaces.

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I'll pass it along.

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Do you want to use book gay friendly their sunglasses research you won't show up in Chicago.

We have introduced a threat variety of offerings on the on the online space. We are also in initial stage of exploring how to get more offline traffic. For example, we plan to launch a feature enabling our users to post a share offline activity information we will.

So aggregate information of our GDP Q friendly offline spaces to keep argue there's more offline spending choices.

Thank you Sean.

Keep in Charlotte.

Hey, Jason.

So if someone's going to finish off with muscle car suggestion for you Tom.

Somehow people the Chicago what do.

Do you see a I don't want to play our profitability. Some time in some tier four feet tall dosher staggering shop format architectural dig even deeper for switching needle felt I ought to be cheated.

She tried to she selfishly from Windstream tests in the third quarter by improving have reason, we saw increases in user success rate conversation franchising as well as the time spent on the App. Besides think has full wages at least we rollout last quarter further both seize up.

Paying ratio of fingers membership services to more than 30%. Meanwhile, we rolled out a feature on zynga through Weech user can share travel blog lifestyle stories, and the reviews of restaurants and products. It will further enrich our content offerings and provide our community members.

With gradual graduate spending choices, which will enable them to lead the trend of People's daily necessities.

So what are your comment was I don't know yard issue do you think should Huntington walnuts and push it into patient journey.

You also choose I should hope for Ya Global Yoga health.

So do you how do you encourage him into the T cells.

In overseas market, we are leading in most of the southeast Asian countries with a strong network effects, which began to cut our costs marketing expenses for advertising in this quarter and have transformed our strategic priorities.

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Sure.

Privacy is of most importance for the al GDP to community and we are always committed to providing a safe and secure environment for our members from different cultural backgrounds and societies in this quarter. We introduced a series of new features and polluted boost on that peak.

And international versions to battle back to user identity and privacy, the new protect them.

Ziv Magers include automatic safety and Security reminder, do remembers personal Chad prohibiting screen captures and screen right recordings, the relapsed dreaming and video calls.

So I think I'll comment on this also.

Fuller 19, Gen consulting team hired four additional tissue of origin.

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What are they all go for some time.

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Jim called out hunting before patients can go about it.

Thank you Tom.

<unk> marked another milestone for <unk> health as we launched him Mr. Her on November 5th a consumer health brand, providing metal person to person.

Personal and sexual health care products currently Mr. Her provide six core customer friendly products in decrease in a convenient packing and got great feedback from the community. Mr. Health plan to provide more products and services to expand our COO.

Consumer base to all the male customers.

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To ensure that we are.

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Hurricane comps towards the end about at Homeaway, a lot sort of pushing the 19 kick up moving high well me and don't easily comparable hurricane kind of chomping, who we couldn't be more.

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He health services has also stepped closer to our goal of a 100 City express delivery services, where we're seeing another 30% quarter over quarter growth.

Blue box others in the third quarter of 2021 of HIV prevention is a vital part of our commitment to covering the needs of our overall men's house. This growth shows us just how important it is for this community.

We are proud to gradually developing house into a comprehensive online and offline platform covering all aspects of defense health needs and we aim to further enhance our products and services to create more value for the community.

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But it was really quite out of that engine do you want a digital bundle.

Our commitment to corporate social responsibility is also proven by the charitable activities conducted this quarter on the war on the World Mental Health day on October 10th we collaborated with our Mexican actor Polo, Lauren He's a openly gay for video too.

Rise vis abilities of different subgroup of the hour GDP cute communities. We also donated to the organizations dedicated to the well being of marginalized groups.

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That dumping unit Qingdao job soon we're stuck.

In this quarter because of the COVID-19 and headwinds in the macro environment, we suffered from some setbacks from our lab streaming business.

But I would like to emphasize that by continuously improving our products, increasing users' willingness to pay and improving our revenue structure. We are confident that we will see a robust growth in revenue as well as profitable in the knee.

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And then we'll jump you log on you. Okay. So she's telling me what I've read her dumping jumping onto the study would be well now let me turn the call over to our CFO, Alfred who will discuss about Arthur F strategies.

Thank you Mr. Martin.

And thank you everyone for joining our call today.

Mr. Mark just mentioned.

Our business stays on the right.

Towards our long term goal.

This quarters as we continue to focus on customizing, our product portfolio and diversifying our revenue stream. We are pleased to increase pleased to see increased revenue contribution from our membership services and health related products and services.

Revenue from membership and he helps us present neutral, but total revenue was 13% and 8%, respectively, comparing with 6% and 3%.

Same period of last year.

Furthermore.

In addition to pursue pursuing.

Top line growth.

We are still in the process to reassess our business model in order to balance between revenue growth and profitability.

In the third quarter of two.

2020 one.

We implemented major sport cost control to improve our operating efficiency.

For example.

Our overseas there with hygiene promotion expenses decreased 25, 4%.

On a sequential basis as we targeted to our overseas business in two countries and regions.

Hi, Roy.

And.

Organically acquire users through means such as Schwartzel mountain activities.

We are looking for long term sustainable growth in the future.

See considerable potential for increased monetization.

Product and the service offering continues to grow.

Looking ahead.

We will remain committed to executing our growth strategies with a focus on.

Reaching our product offering and optimizing our services.

We will also stay to our mission.

Yeah.

Continue.

Raising awareness of health and HIV prevention.

In the quarter.

We discontinued.

Operation of last two.

Please contribute less than 1% of our total revenue in the past quarters.

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For male users with a lower willingness to pay for.

My social networking services.

Going forward we.

We will continue to focus on growing our core business to serve the well being of the LGBTQ community.

We believe we are on the right direction is towards the next stage of growth.

So most of our strategies and strong execution.

No let.

Let me turn the call to our acting CFO.

So that's who.

Who were providing details on our financial performance.

Thank you all for right now let me go through our financial highlights for the quarter.

Before I go into details. Please note that.

All numbers presented.

And now for the third quarter of 2021 unless stated otherwise.

All percentage changes I'm, a euro or euro basis, unless otherwise specified.

So a lot of SaaS, it's content in our earnings press release, which is available.

Upsides.

Our total revenue for Q3 will be 217 million down nine 3% year over year and driven primarily by the decrease in our revenue from live streaming services.

In this quarter, our total <unk>.

A 19, 3% to seven 5 million with a strong growth of 57, 1% from our total paying users to reach 776000.

Sure.

The decrease in payoffs if you use for that premium through it is the cost the overall reduction in our total revenues.

Revenue from overseas operations tells me butane certain 0.1% to total revenue.

Increased from nine 7% in the same period last year, notably we also accomplished a meaningful progress in diversifying our revenue streams with encouraging year or what your revenue growth from membership services and the health this quarter.

Revenue from live streaming services.

$194 2 million, representing a year over year decrease of 23, 9%, particularly what's primarily due to the decrease in the average revenue per paying user for last three months royalties as a result of the headwinds in the talent show live streaming industry.

China.

Yes.

Revenue from our membership services was $35 1 million up 93.1 year over year.

The increase was primarily due to the significant increase in the number of paying users benefited from membership services on the account based apps.

Revenue from advertising was <unk> 13.6 million up 34, 2% with the increased primarily due to our continuous efforts.

Putting more advertisers with star wars, or they were driving and the multiple solutions as well as improved advertising efficiency.

Revenue from our merchandising sales of health.

<unk> reached $22 8 million up about 136, 8%.

We expect the house to achieve stronger momentum in the coming quarters as the company devote more resources to expand our health related offerings.

Now moving to our cost pulse.

Cost of revenue decreased by eight 3% to renminbi $184 9 million.

The decrease was primarily due to the decrease of revenue sharing costs, along with the decreased revenue of live streaming services and.

Partially offset by the increased cost of products connected with the growth of gatehouse merchandize sales and the increase of staff cost.

The gross profit was RMB $85 1 million.

11, 4%. The gross margin was 31, 5% remained flight with 32, 3% from the same period of last year.

We expect to further accelerates revenue contribution from our membership services to achieve overall margin improvement.

Let me now pass revenue sharing and commission costs are still the key components in our cost of revenue. We remain committed to actively explore solutions to reduce revenue sharing percentage and implement a more sustainable model for our large streaming services.

Operating expenses for that maybe $116 7 million down 33, 2% year over year.

Sales and marketing expenses were <unk> $56 9 million down one 9%. The decrease was mainly due to the decrease of share based compensation expenses, partially offset by the increased advertising and promotional expenses and staff costs.

Technology and development expenses were $66 2 million up 31, 6%. The increase was mainly due to the increased staff cost and the technology related department and the content and the bandwidth cost.

Which was partially offset by the.

Take weight off share based compensation expenses.

G&A expenses were 31 6 million and down 17, six 1%. The decrease was mainly due to the decrease of share based compensation expenses will partially off sites by the increased staff cost.

This quarter, we had impairments of goodwill and intangible assets of <unk> 6 million, which was due to the termination of left to relate to the business.

Net loss was $73 8 million compared with a net loss of $137 8 million in the same period last year.

Adjusted net loss was RMB $62 2 million compared with adjusted net income of $7 3 million in the same quarter of last year.

As of September 30th 'twenty, 'twenty, one we had cash and attached equivalents and term deposits of the MB $370 9 million compared with 611 8 million as of December 31, 2020.

Now moving to our guidance, but given the increasing uncertainty in the pilot show less streaming industry. We.

We are not providing specific revenue guidance for the full year 2021.

Well that concludes our prepared remarks, let's now open the call for questions.

Please go ahead.

Thank you.

To ask a question you will need to press star and the number one on your telephone to withdraw.

Your question. Please press the pound key.

Standby, while we compile the Q&A roster.

Once again, please press star one on your telephone.

Once again these best Taiwan on your telephone.

Our first question is from the line.

Laura Champagne.

Loop capital. Please go ahead line is open.

Good morning, Thank you for taking my question.

Could you outline for us what the key factors are that are negatively impacting the live streaming business.

And give us a sense of when you think that business might return to growth.

<unk>.

Okay.

<unk>.

Yeah.

The lion's streaming business in China.

It's becoming more and more competitive.

Especially some companies.

They actually keeps.

Hi, <unk>, hi revenue shifts.

And these high repetitious might cause a deepened.

Severe competition.

In the market.

What we are doing is that we.

We implemented several measures to improve our luxury business.

For example.

We help some less well known last three months.

Give them some training to help them to attract more audiences.

Also we will introduce or develop some features such as.

Such as.

Gamification features.

To keep users engaged.

We expect to see some more concrete result in early 2022.

Okay.

And just as a follow up question.

You mentioned that the market has gotten competitive performers, but I think in your prepared comments. You. Also mentioned you think you can raise that cut the blues city takes.

How how would that work.

We try to Hum.

We're trying to introduce more.

<unk> tried to increase the content for the live streaming.

And as I mentioned earlier, so we will try to help lows.

Less well known the last three months.

To give them, some Chinese and tell them to attract a more audience.

And also because for those of luxury.

Doing the doing the live streaming with.

With blue.

The so-called because because about user they have.

You have a stronger.

Stickiness.

In our products so we do.

Due to this.

The nature of our users.

We will we will be able to improve the luxury business.

Over the next few months.

Okay.

Got it thank you.

Yes.

Thank you.

Okay.

Our next question is from the line.

But Tim more of Zacks small capital research. Please go ahead.

Yeah.

Yes. Thank you.

Your press release mentioned progress he health.

I know you mentioned the six products have been launched for Mr. Her.

I was just wondering maybe if you can provide us with more color and details on how you're building that awareness.

Getting it out there and also how youre kind of may be going to.

Open it up to <unk>.

All mouth all manner.

Yeah.

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Okay.

<unk>.

We we actually are planning point of view.

Our marketing activities to increase the awareness of the brand of the brand.

Right no.

We are.

We increased our awareness of the brand we've seen mainly within the <unk>.

Blue Blue App products.

We also have the plan to open.

Third party.

The online store.

Similar products.

In the near term.

<unk>.

Sales from the sales from the customers.

Sure.

Bruce.

We'll be more than enough to general Jennifer generate significant revenue.

But you know mid to long term, we will try to sell their products too.

As our customers outside of the <unk> users.

Good good.

The other question I had was what are your plans to do with your net cash it looks like you.

You have something equivalent to 58 million U S dollars.

65% of your market capitalization.

Have any plans to spend that or do more acquisitions or reinvest anything.

We still focus on our core business.

For our cash position.

Oh Louise.

It is.

Quite enough for our operation for the next.

At least for the next three years, we will see we will we will use the cash for other purpose.

And I'll, let in the core business.

It does.

As we mentioned earlier.

We have we have the health business and we just launched a new.

Brendan.

And we need the cash to expand our operations.

So Paul our cash position that will be mainly used for our core business.

Great. Thank you and as there.

Lastly are there any <unk>.

New features.

Or benefits that you think that you are adding to livestream. Besides training some of the less experienced live streamers that would maybe make you more competitive in the space against some of the peers that are offering higher revenue shares I'm just wondering if you're.

Putting anything in there that's really going to make you you know.

More differentiated.

One example, we used to look and features skin related features for example, like a PK among the last three months.

He is the one and then.

Some cases.

If you play.

If they use the first time to to buy bipolar service, we might have some discount for that to try to attract more users to pay for the service to pay for to pay for the live streaming services.

Great. Thank you and that is it for my questions.

Thank you.

Our next question is from the line of Ethan You First Trust group incorporated please go ahead.

Yes.

Hi, good evening, Thanks for taking my question.

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2019.

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The model is intact.

Yeah.

We're counting guys has a woman downtown keeps them of course.

He said no.

Thiago and T. The Hawk downtown deal do you think that he thought he was declining human conflict in top of the two P. M I really can't say.

Women going through that do you want to answer some of them.

Hi, I Didnt call that you've got these new accounting depends on the mobile maybe timing and quality of content.

We're going to have quite a bushel.

I will quickly translate for myself my first question.

The company's gross margin was under pressure in Q3.

What initiatives you're doing to improve it.

And my second question is regarding your plans and expectations for the newly launched brand next year.

Also the health growth he health, what convenience I need to be strong in Q3.

What is the company's expectation for the scale contributing Franck <unk> health next year.

And I didn't have a follow up when data. Thank you.

Okay.

With R&D.

<unk> will then Keybanc appetite challenge.

Unfortunately, it is a modeling even youll.

T cell module you call the yield will be virtual.

For Cleveland.

All the usual Jack Hartung.

It's a commodity that you hit hunting so Matt.

We'll likely see some tear down the year without on good authority or <unk>.

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Alright, I think I should have told panel.

Thank you Yoshida Shitala Chiquita Ginger.

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100 women, but it puts us on how the timing of my salary.

Typically I saw how they take it off and I'll take that.

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Somebody did you take any preliminary.

And they take it home, but can earn.

So that will happen.

Okay.

Dominion shareholder.

And that again, and then what kind of a container.

Okay.

Neoplatonic Okay.

Okay.

Okay.

So for the improvement of the margin what we are trying to do is that fair.

First.

We will now.

Increased revenue contribution from our high margin business.

For example, the membership.

Membership services and health related business.

With the business revenues, such as we expect to we.

We expect to be to be.

Two together because our GBM locked.

At this point the second point is that for.

For our overseas business we.

Also implement.

The expense control as we mentioned earlier.

Advertising and promotional expenses was down.

Nearly 45% on a sequential basis.

And we will continue to do so over the next few quarters. So you will see.

Much better.

Operating efficiency.

Especially in Europe.

2022.

Second the simple is that we will also try to improve ours.

Our technology related expenses, especially related to Penguin.

You may already.

See the high expenses related to.

Peg.

But some of the tech space is pretty much one off.

So going forward, especially next year.

You'll see a beta.

Basis.

<unk> expense.

Expense.

Saving.

The tech area. So with all of these we think we will have our betas.

GP margins and probably have a bit there will be margin as well.

And when you put out in the yard <unk> wafer technology.

And so that as soon as it is an extra women with high yield as yourself.

The cashier.

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That is currently occupied by regulatory tool.

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For bulk core women that <unk> goes home and Anton.

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Tom I think <unk> got Yadkin, So, Matt Wednesday put us all comporting with.

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Our 10 hour fashion Love women.

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Hi, Nicole.

Plus <unk> got <unk>.

For Japan.

Kitchen.

Okay.

When we started the health business back in two.

2019.

We already got the quite the.

So plan police business, meaning that they're not.

We already plan.

To do the OEM business, the so called the consumer paint business.

So could you see hours.

He health really business actually was develop a step by step the stage by stages.

So for the first phase you'll really see the.

In light of medical medical.

The casualty business. The second step is that we launched the Mr. Huh.

Consumer brands.

And.

The reason, we launched the visa consumer base.

We know we know we know ours users' needs very well and we know that the deal will be a strong demand from our users for these kinds of consumer products. So that's why we decided to launch the Mr. Hirst brand.

And during the initial stage.

The brand has.

Six six products.

For the second stage next year, we will try to expand the product line of the Minister Mr. Huh.

And because because we see that this deal will get done.

The popularity of mobile users.

Mr. Her product should have quite a significant contribution.

Two the he health business.

In the future.

What I presume to G by guess.

The Geoscience should you sound Arctic a judicial ruling I, certainly can talk time and got them kicking in.

So should I take that.

That's one element.

Kind of a change in EMEA, an unusual one and definitely that's horrible hurricane kind of sold take the top 20.

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Some people think that's important for our country.

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So a lot of time <unk> solo that evergreen model Hana I think that most of that is so low that you go to the P&L.

Savanna tissue EMEA, that's yeah, that's a great time for cold water down the Shanghai that is a function of toll road.

Oh prostate Mercury, if I'm being told about the Oklahoma condensate, but at what time you ship would you I guess you'd have an enviable Jay doshi longer weighted or anything to you won't go into that.

Towards the end of July the conoco toward a down each year shyam harder for savanna.

I think again unfortunately that.

Can women controlling Michigan Alma Patrick so much about Amazon, but in Europe, or China, now, Michigan County that enhances Dunkin' of elite.

Okay.

As you already see that we have a strong.

Sales growth from the membership business.

Also from strong sales growth from health related business.

With with.

<unk> never new structures.

We expect to see betas.

Peters.

Margins in the future.

And also although right now.

<unk> business is the biggest revenue contributor.

But we are not position ourself.

Live streaming company.

So in year 'twenty.

Plenty plenty to.

Much more paper.

<unk>.

The revenue.

New structures.

Because.

We will try to.

The benefit of all the LIBOR business.

And for the licensing business, we will try to.

As I mentioned earlier, we will try to develop more tissues.

Even probably will we will.

We'll.

Given them some e-commerce related business.

Along with our live streaming business. So that is one area.

We are considering.

So so we are still the company.

Krish, which are dedicated to the so called a lifetime to provide the lifetime service tool for all users.

This mission has not been changed.

Uh huh.

Thank you.

Sure.

But.

What's come through in the telecom market.

Constant dollar console controller pumps will act in the civil case finish out yeah. We.

We can.

That's how I see something they've got engine called <unk>.

Went down and Mayo.

No.

With that I'll ask on the Pud, Utah, you'll meal.

It sounds like it'd be a popular Shaw 'cause it seemed like he thinks about that.

Thankfully I have a follow up.

Regarding the global market would you please share more color requirement of your overseas market.

In terms of the.

Total revenue and May you all the metrics.

Any update or change.

Your strategy on overseas expansion. Thank you.

Uh huh.

<unk>.

I can't say it again.

Could you kind of happy.

Hi, Paul.

100, <unk> do you share what you have so long that I put on the T cell now touch on solar.

<unk>.

At all our passenger Luke just under a year.

Teva between Iot.

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<unk>.

Donna <unk> our son.

Tom.

Yes.

This is Daniel.

Hmm.

So this is.

This is one of them, but he was doing 31 bedrooms are terms will highlight.

You would've done sooner.

Let me hear limitation to Thunder down Ive got here, especially at the high or the terrorists.

On our mature at age out of the room count has highlighted.

But I think the coppola.

Sure I think we can take a call out to other youngish anyway.

A woman controlled.

Can do that when I add it you know kind of you know voucher I think youll see that anyway.

How do you weigh tightening she cannot take us with Obama showing not only due may of BR.

<unk>.

Look what are called total health when they are quickly trying to lever up quickly.

Yeah.

You tell me that economy down the quarter.

Not much lineup yard one unusual woman sorry to border T. Some woman Johan.

Hi, Jake.

Person to lead to a traditional one.

Women Dominion Conoco, you'll controller John <unk>.

Highlight G board take it home so talking about Ryan Shannon still country more highlighted I think.

Take away that sulfate I take a ton in our challenger annuities.

Our new leadership tapping what the T. J <unk> cannot only halfway to can you share a particular type of I mean your thunder.

And at the bottom.

Can I kind of Hana.

But you know he can call not how does it go full pay you an avocado quake can call our Medici all Sheila what in a negotiation.

But I assure you that you can increase the number of countries also jumped in place you can't take you'll need the Dominican won't be all I cannot.

Yeah.

Actual traditional Goodyear Wheaton colleague.

T Sunshine heart.

I think you can take a turnkey Middletown that you've got your dwell time.

Okay.

For our overseas business.

May you.

Overseas business was.

2.94 million.

Uh huh.

$3 million.

<unk>.

Versus a $2 six its millions in the same period last year.

So the year on year gross for the menu was.

10, 5%.

And also for the cells.

While the sales contributions for sales contribution.

As you can see pharma was a release of overseas business accounted for 31%.

13, 1%.

So call it lithia versus nine 7% in the same period last year.

So if you do look like real issues. The overseas sales revenue was roughly $35 million.

<unk> is a $28 7 million same period last year. So the year on year sales growth was 23%.

So as you can so so we can see that the hours. The overseas is overseas business continue to grow in the third quarter last year.

Even we.

<unk> already implemented some majors too for the course.

Expense control.

So.

As far as the future strategies come simple overseas business.

What we will do is that we will continue to implement.

The cost measures and our cost control measures and expense control measures.

And <unk> gross well more rely on the so called organic growth.

That is the first one the second the second one is that we will try to enhance ours.

Monetization is.

Martha issues for our overseas business.

And we will try to because for especially for our live streaming business overseas.

Now.

Our overseas live streaming business more.

Is more social.

Rented.

And in the future probably will be transformed.

Two.

The so called tariff talent show oriented.

We believe in this way this will bring this will bring you more sales revenue for overseas business next year, so our target for <unk>.

Our target internal target COO.

This is business next year is to try to try.

Try to have lease period to become a profitable at the bottom line.

You cannot add up I missed citizen and battlefield, Gila and cash returns that are sure to sure.

<unk>.

We will let him talk about that in the Sunshine in Pi.

What is I think <unk> done some of that movement of Atmel.

Okay.

Okay.

Additionally, additional information.

Our new overseas accounted for a <unk>.

43, 8% of the total amount you.

So millions.

Uh huh.

Maybe he's concerned overseas pieces already.

A significant part of our business.

I'm sure that's a great I have no more questions. Thank you.

Thank you ladies and gentlemen, we have now reached the antibody question and answer session and I'd like to hand, the conference back to management for closing remarks. Please proceed.

Thank you.

Operator.

You all for participating on today's call and for your support.

We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

Thank you. This concludes today's conference call. Thank you for participating.

Disconnect.

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Yes.

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