Q4 2021 Ucloudlink Group Inc Earnings Call
Good morning, and good evening, ladies and gentlemen, thank you for standing by and welcome to your cloud Link group incorporated fourth quarter and full year 2021 earnings conference call.
Ladies and gentlemen, thank you for standing by and welcome to UCloud Link Group Incorporated fourth quarter and full year 2021 earnings conference call.
At this time, all participants are in a listen-only mode. After prepared remarks by the management team, there will be a question-and-answer session. Today's conference...
At this time all participants are in a listen only mode.
After prepared remarks by the management team there will be a question and answer session.
Today's conference call is being recorded.
I'd now like to turn the conference call over to your host today, Ms. Jillian Zeng, investor relations of the company. Please go ahead.
I'd now like to turn the conference call over to your host today, Julien Zhang Investor Relations of the company. Please go ahead.
Jillian Zeng: Thanks everyone for joining us on our 4th quarter and 4th year 2021 EARNEST call today. This EARNEST release is now available on our IR website at ir.euclolink.com as well as our newswire survey. I will give a brief introduction to our Euclolink team.
Thanks, everyone for joining us.
Fourth quarter and full year 2021 earnings call. Today. This earnings release is now available on all well I have upset and I heard all your plumbing dot com as well as newswire the way I will give a brief introduction to our your clothing T. Tripping com is our co founder and.
Jillian Zeng: Zhi Ping Tong is our Co-Founder and Chairman of Board of Directors. Chao Hui Chen is our Co-Founder, Director and Chief Executive Officer. Yi Meng Shi is our Chief Financial Officer.
Sure, Matt about Directx 12, which is a whole co founder director and chief executed in August .
Emil our.
Our Chief Financial Officer.
Speaker Change: Zhu Tan is our one president of the marketing and sales.
<unk> is our president of the marketing and sales.
Speaker Change: Our CEO will begin with an overview of our company and business highlights, which will cover Section 1 of the earnings presentation posted on our IR website. Our CFO , Yi Mengshi, will then discuss our operation highlights and financial results as presented in Sections 2 and 3.
I will say Oh, well begin with an overview of our company and the business highlights, which well cover section one of the army presentation posted on our IR website, I'll, let's say F O T. Mo shoe well, then discuss our operation highlights and financial results as prison.
Rented in the section two and three before their first day placement.
Speaker Change: Before we proceed, please note that this quorum contains forward-looking statements made pursuant to the safe harbor provisions of the Private Security Litigation Reform Act of 1995. These forward-looking statements are based on measurements' current expectations and observations.
Note that this car, making time forward looking statements made pursuant to the safe Harbor innovation.
Private Securities Litigation Reform Act of 1995. This forward looking statements are based on a medicine mens current expectations and observations that involve the knowing I know ray I'll start in case and other fabs now, although the company's control which may.
Speaker Change: that involve the known and unknown ways, uncertainties, and other facts not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations imbibed by this forward-looking statement.
However, actual results cause enough of a chip medicine also company to be materially different from the results put them Oh expectation entirely by these forward looking statements.
Speaker Change: All forward-looking statements are expressly qualified in their entirety by the Consulary Statement. With the factors and details of the company filings with the ICC, the company does not assume any obligation to revise or update any forward-looking statement as a result of new information, future events, change in market conditions, or otherwise, except as required by law.
All forward looking statements I expressed a life qualified in their entirety by the cautionary statement in the factory and the details of the company's filings with the IC say the company does not assume any obligation to revise or update any forward looking statements as.
Without the of new information future events chat in market conditions or otherwise, except as required by law.
Speaker Change: Please also note that Euclid Link's earliest press release and this conference call include discussions of the non-nullity GAAP financial information as well as the nullity non- GAAP financial measures. Euclid Link's press release contains a reconciliation of the non-nullity non- GAAP measures to the nullity most directly comparable GAAP measures .
Please also note that you're calling earnings press release and this conference call include discussions of the non molded schade, that's the national information as well as unaudited non-GAAP financial measures you, calling press release comparable calculation after I'm done I'll do two non-GAAP .
Major tubes, and allowed you to most directly comparable GAAP measures.
Speaker Change: I will now turn the call over to our co-founder and CEO , Mr. Chang-hui Chen, please go ahead.
I will now turn the call over to our co founder and CEO . Mr. Chau Cheng. Please go ahead, yes. Thank you.
Yeah, I mean, our content.
Chang-hui Chen: As the ending presentation of the third quarter of the year 2021, I will focus on our technology and recent developments.
After the presentation of the so called her beautiful doesn't punchy, what I will focus on our technology and recent developments.
Chang-hui Chen: And let's move to the page 13. uClouding 1.0 is our international data connectivity services business.
Now, let's move to page 13.
Counting one point, though all the information that David Hudson, Okay, with your service case easily switch.
Chang-hui Chen: which has had a strong track record of high growth margins and profitability with ongoing growth potential.
Switch.
Our strong track.
Right.
A high gross margin.
With ongoing close to ensure we have the appropriate and Huntington.
Chang-hui Chen: we have established an intelligent wholesale-to-retail repackaging solution to minimize the unique cost of data traffic. In that, as data package of single operator all across mobile network operators, mobile virtual operators are priced differently.
Huntington wholesale to retail ready packaging solution to minimize the unit cost of data traffic.
There's a page of single operator, all across mobile operators fall by a bunch of operators.
Right.
Chang-hui Chen: This is attributable.
Correct.
These are all key people.
This is.
Archie with table.
Uh huh.
Chang-hui Chen: to our large steam car pool and our ability to acquire data packages at local wholesale prices from operators and partners.
We've built a boat.
To all our largest screening carpool and power ability to acquire data pages at the local wholesale pricing for our operators and partners. We've thought that is.
Chang-hui Chen: we further differentiate ourselves.
Differentiate ourselves.
Chang-hui Chen: with our multi-network reflection and combination technologies.
With all of them marquee natural welcome risk selection.
Chang-hui Chen: which could ensure high-quality data connectivity.
Combination of technologies, which could ensure high quality data connectivity.
Chang-hui Chen: and an improved user experience. New Cloud in 1.0 business monetization model includes retail to seed, rental or selling to the end user.
And and improved U S theaters.
You'll probably want to monetize.
Monetization model in cruise repaired to see.
Rental Australians who the end user.
Chang-hui Chen: Wholesale, 2D, business partners, and our path and SaaS services such as CRM, billing management, devices selling and rental management, etc.
Wholesale to be.
Partners and a pop and soft services, such as C. O N Feeney management device PS 30, and then how many of them et cetera.
Chang-hui Chen: For wholesalers to be, we can act as a reseller or provide commission services to our business partners.
For wholesale to be weakest.
Santa all provide the commission so we see it.
Chang-hui Chen: We allow our business partners to share data traffic pools through our Path and SAS platform and charge a commission fee.
These partners.
We allowed our basically as partners to share data, probably pools through our pasta and sauce headphone and charged a commission fee.
Chang-hui Chen: In year 2021, we strive to accelerate the recovery of our 1.0 business.
In year 2021, we strive to accelerate the recovery of are one part of the old business.
Chang-hui Chen: which was reflected in a positive trend in the daily active terminals called DAT of 1.0 business growth.
Which was due.
In a positive trend in the daily.
Temenos called to a tee up one point to obey things close.
Chang-hui Chen: as the number of international travellers increased in various markets and our 1.0 business revenue increased in the third quarter of year 2021 year over year. The revenues of our 1.0 business in our North American
A number of international travelers increased in various market and saw a one off basis revenue increased in the third quarter of 2021 year over year.
Net revenues of one point.
In our North American.
Chang-hui Chen: and the yield market increased during the first quarter of 2021 year-over-year.
And the Europe market increased during the first quarter, albeit 2021 year over year.
Chang-hui Chen: although the total revenues from the same nine of the business experience
Total revenues from the same non popular PC experience.
Chang-hui Chen: a year-over-year decrease in the same period due to the impact of the COVID-19 virus.
Year over year decrease in Peoria.
You would pull up impact of the COVID-19 Williams.
Chang-hui Chen: Despite the impact the pandemic has had on our 1.0 business, it has also created opportunities for potential growth, including the demand for more data related to travel tracking, vaccination records, digital passports.
Despite the impact.
Danny.
Has had.
Oh, I want them on to our business.
Also create opportunities for potential close.
Including the demand for mobile data related to whichever checking with nation that cause.
I think this whole passport and up.
Chang-hui Chen: COVID test report. We also anticipate that we will see fewer competitors in the post-pandemic market, but we could not assure you.
Colby report, we also anticipate less we will see fewer competitors in the past.
To meet the market.
We cannot assure you that.
Chang-hui Chen: That one point of business will now be negatively impacted by COVID-19 pandemic in year 2022.
Thats one piece of it so we have no in that community impact by COVID-19, pandemic, yes was awesome.
Chang-hui Chen: We remain confident in the prospect for international travel, with a worldwide recognition continuing to progress, and more and more countries opening their borders to tourists in the year 2022 and beyond.
Thank you too.
What are we meant coffee.
Post pet for international travel with the worldwide with nation, continuing to progress and more and more countries opening their borders to maturity in year 2022 and beyond.
Chang-hui Chen: With that, I would like to reiterate our vision for the 1.0 international data connectivity business.
With that I would like to reiterate our vision for the 1.0 information of data kind of deal with the business.
Chang-hui Chen: Our plan is to not only continue providing existing high-quality 1.0 offerings, but to size big market share with the development of more innovative products and services.
Our plan is to not only continue providing ease of 15 high quality one.
Offerings.
Just to size it.
Market share we used it as well.
Do you put them in a more innovative product and.
So we see.
Let's Motorola page 14.
Chang-hui Chen: uClouding 2.0 is our local data connectivity services business and has become a new drive of revenue growth since the year 2020.
You'll probably coupons oh its all local.
Kate Hudson has hey, what's your services business.
And that has become a new slide.
When you close since he is 4000 plenty.
Chang-hui Chen: Its business monetization model is similar to that of UCloud 1.0, with a massive potential local user base.
Hey, good.
Monetization model it similar led to offer new cloud and 1.0 with must be potential local user base.
Our new hyper pump technology.
Chang-hui Chen: contribute to the further development and growth of RU Cloud in 2.0 business.
Sure.
Uh huh.
And the clothes are you planning to put the old business.
Chang-hui Chen: and we have expanded the business scope of our local data connectivity services.
And we have in.
Basically the scope of our local data connectivity, so we see car.
Chang-hui Chen: Currently, our innovative hypercon technology is widely accepted by mobile network operators and business partners in various industries with greater growth potential, such as with local partners in China, US, and Japan.
Currently.
In no way teeth Hypersound technology is widely accepted by mobile network operators and basically its partners in various industries with greater growth potential such as with local partners in China U S and Japan.
Chang-hui Chen: Our 2.0 business shows a great deal of resilience with proven high demand and growth potential during the pandemic.
Our coupons business shows a greater deal of resilience with proven high demand and growth potential during the pandemic. We have operator improved layout data somebody sees and soften that things have kind of a nation openings through our Pos and soft pretzel we.
Chang-hui Chen: We help operators improve their data services and solve the data connection problems through our PaaS and SaaS platforms. We provide high-quality data connections for 5G applications in response to the increased demand for better connectivity services.
It provides high quality data connection for fast your applications in these homes to put.
The increase demand for better connectivity services for the mall as people get used to a new normal.
Chang-hui Chen: Furthermore, as people get used to the new normal, our products and services provide better performing solutions for remote work and learning, which require reliable connectivity as well.
And so as these provide spent up on me solutions for remote work and doesn't need which would require reliable connectivity as well.
Chang-hui Chen: For example, our new tablet is equipped with Hypercon and CloudSim technology.
I hope all of our new tablet equipped with hyper Colo and cloud technology.
Chang-hui Chen: have been put to use in new industries such as education.
Has to be put to use in new industries, such as education.
Chang-hui Chen: We have made progress through HyperCon solution with mobile and face-to-face business.
We have met progress through hyper cloud solution with some more patents baseball fan bases.
Chang-hui Chen: Under various application scenarios such as home broadband, for example, our mobile and fixed broadband business cooperation with one of our major network operators in China has been successfully launched and distributed to more provinces.
I don't know various applications tsunami, that's such as a home for pain for example, our mobile and fixed broadband business cooperation with one of our major network operator in China has been successfully launched and distribute more proteins.
Chang-hui Chen: We also plan to embed more global insights, we call GMI, in smart devices by cooperating with more intelligent hardware manufacturers.
We also plan to invest more CRO call me insight, we caught him is samantha device by cooperating with more intelligent hardware manufacturers.
Chang-hui Chen: In addition, we have extended our footprint into more application scenarios, including but not limited to Internet of Things, IoT modules, industry Wi-Fi loaders, IP cameras, power supply, emergency services, etc.
In addition, we have he's turned all of our footprint into more applications scenario, including but not limited to internet of things Iot modules.
Duffy Wi Fi low twos.
IP camera.
Pablo surprise emergence services.
Chang-hui Chen: like live broadcasting, e-commercial, and autopilot, etc. and are actively exploring new business prospects to serve a broader spectrum of IoT applications.
Like life Cross path P E commercial and auto pilot et cetera.
Actively exploring new basically cross paths to serve a broader spectrum of Iot applications.
Chang-hui Chen: We expect our 2.0 business to grow with the support of our innovative cloud theme and hypercon technology as we continue to introduce our solutions, services and products to the market and strengthen our cooperation with the local partners.
We expect our coupons the old business to close with the support of our in.
In no way too crowded.
On technology as we continue to introduce our solutions services and put that to the market.
Brendan.
Our cooperation with.
With our local partners.
Let the multiple of page 15.
Chang-hui Chen: Based on our innovative cloud-themed and HIPCOM technology solution, we continue to develop and broaden our portfolio of offerings with new products and services, such as our self-developed terminals and third-party devices.
Based on our innovative crowd and hot Com technology solution, we continue to develop and broaden our portfolio of offerings with new products and services.
I'll ask Seth develop Temenos third party devices.
Chang-hui Chen: For example, after we unveiled our new hypercon technology and products in June of year 2021, we launched these solutions and products to the market in the second half of year 2021, such as Neumann.
For example, after we unveil our new hyper cone technology and put us in June .
Our 2021, we launched lease solutions and put us to the market in the second half of year 2021, such as Newman.
Chang-hui Chen: the world's first HyperCon 5G mobile Wi-Fi and GENIE tablet device.
The war first a hyper comp a fast T mobile Wi Fi and Jeannie tightly.
Chang-hui Chen: in the third quarter of 2021, and a mini-turbo portable Wi-Fi hotspot equipped with HAPCOM in the fourth quarter of 2021.
Right.
The third quarter of year, 2021, and many turbo a possible Wi Fi equipped with heart pump in the first quarter of year 2021, all of IP camera IPC has country testing.
Chang-hui Chen: Our IP camera, IPC, has complete testing and is expected to launch commercially soon.
We expect it to launch it commercially food.
Chang-hui Chen: our hypercon technology solution has been well received.
Our Hypersound technology solution.
Well, let's see.
Chang-hui Chen: and related products are gaining recognition, proven by growing user base across a wider spectrum of industries. Going forward, we plan to launch more of these types of innovative products and services.
Relapsed post a skinny resignation proven by growing users.
User base across a wider spectrum of industry going forward, we plan to launch more off lease Python innovative product and the services.
Chang-hui Chen: uClouding positions itself as a pioneer technology solution provider in the data connectivity market.
New cloud in position.
<unk> itself as a pioneer technology solution provider in a data connectivity market.
Chang-hui Chen: In year 2021, we made it a priority to invest in research and development.
In your 2021, we met our priority to invest in research and development.
Chang-hui Chen: Most notably in technologies like CloudFim and HyperComp that are compatible with various application scenarios, both of which are greatly reinforce our technology advantages.
Most notably.
Notably in technologies like cloud and hyper com.
Compatible with various applications scenario, both of which are greatly.
Great story written first our technology advantages.
Chang-hui Chen: Our mature 1.0 business and newer 2.0 business will together promote the long-term development of the past and sub-ecosystems.
Our mature one part of our business and new work to punt the old business.
To get that promote the long term development of la pasta and sauce, a post systems.
Chang-hui Chen: have been recognized by various business partners.
Which.
Testing.
Recognized by various partners.
Chang-hui Chen: As stated in our earnings release, we anticipate growing total revenue for the full year of 2022 by 15% to 35% to a range between $85 million to $100 million.
As stated.
In our earnings release, we anticipate growing total revenue for full year, Oh, yes, what's often referred to by 15% to 35% to a range of.
Between.
5 million U S dollar to 100 million U S dollar.
Chang-hui Chen: versus total revenue of the U.S. dollar $73.8 million in 2021.
Total revenue yet.
S dollar 717th Street Plaza a minion.
And yet with all of a sudden a 20 watt.
The company expects to improve financer tough on this with the support of all of them.
Chang-hui Chen: to improve financial performance with the support of our commercialized hypercon technology and related 5G products.
Commercial lives Hypersound technology, and really five key product.
Chang-hui Chen: the continuous business expansion of our existing portfolio of diverse IoT application scenarios, as well as the ongoing efficient improvement strategy implemented since the quarterfall of the year 2001 to reduce operating expense.
On a continuous basis if patients are on it.
15 portfolio of diverse Iot applications sit down here.
Well, that's the ongoing efficient improvement strategy.
Implemented as soon as the call quota for also yes, with all of a sudden want to reduce operating expense.
Chang-hui Chen: We believe that from the connected to better connection, e-cloud link is a significant driving force in the transformation of the increasingly advanced information era.
We believe that from the kinetic to setup condition, you'll cloudy is synchrony.
So even if he can driving force in the transformation of the increase and the other one.
<unk> information Halo.
Chang-hui Chen: We are committed to build a more connected future for more customers and users, and we strive to make a positive impact in serving the global user community.
We are without.
We are committed to build a more connected future for more customers and users and with stripe to met our policies he impact in serving the global user community.
Speaker Change: I will now turn it over to our CFO , Yimeng Shi, who will go through business and financial highlights.
I will now turn it over to our CFO Emil <unk>, who will go through business and financial highlights.
Yimeng Shi: Thank you, Mr. Chen. Hello, everyone. Let us turn to page 17 for our business highlight.
Thank you Mr. Chen.
One it.
Please turn to page 17.
Yimeng Shi: The left-hand side of the slide shows the active terminal DAT as of December 31st.
Hi lives and they French side of the slide shows the active terminal B a T S.
The December 31st.
Yimeng Shi: Average daily active terminus in the fourth quarter were
2021 .
Already active determined in the fourth quarter.
Yimeng Shi: 265,595, including 1,585 owned by the company, and 264,010 owned by our business partner.
265595, including 1585 owned by the company and then to 264.
10, O buyouts and it's upon us.
Yimeng Shi: representing an increase of 28.7% from the 206,400 in the fourth quarter of 2020.
Presenting.
Chris or a 28, 7% from the 206400 in the fourth quarter I'm kind of trying to.
Yimeng Shi: Euclid Link 2.0 service accounted for around 69% of the total DAT during the fourth quarter of 2021.
You call. It 22 pointed out of service accounted for around 69% of the total D. T. During the fourth quarter of 2021 .
Yimeng Shi: Our daily data usage per terminal was 1.73 gigabytes in December 2021.
Third is tied to usage of procurement once one point.
Three gigabytes in December 2020 one.
Yimeng Shi: Let's turn to page 18, which shows global diversification of alberna.
Let's turn to page 18, which shows global diversification I'll finish we had 97%.
Yimeng Shi: We had 97% of the total revenue from outside mainland China. During the fourth quarter of 2021, Japan contributed to 37% of the total revenue. For other countries' revenue, the US market had the largest contribution to our business with further development of our US business. And we will continue to expand all the market.
Revenue from outside mainland China during the fourth quarter I'm trying to 'twenty, one Japan contributed to 37% of total revenue for all of the countries revenue. The U S market had that much its contribution to our business with further development of our U S business and we will.
<unk> continued to expand on the market.
Yimeng Shi: such as Japan, China, Europe , and Southeast Asia, et cetera.
Such as Japan, China, Europe , and South East Asia et cetera.
Yimeng Shi: During the first quarter of 2020, we had 5% of total revenue came in from mainland China, 47% of the total revenue came in from Japan, and 48% of total revenue came in from other countries and regions.
During the fourth quarter of 'twenty 'twenty, we had 5% of the revenue can be from mainland China, 47% total revenue came in from Japan, and 48% of that revenue came in from all the countries in the region.
It's up tend to paid you trended.
Yimeng Shi: I will go through our financial highlights of the fourth quarter of 2021.
I will go through our financial highlights.
Yimeng Shi: Service related revenue as a percentage of total revenue was 54.8% during the first quarter of the 2021 compared with 52.9% during the first quarter of 2020.
First quarter 'twenty, one service related revenue as a percentage of total revenue was 54, 8% during the first quarter over the 'twenty to 'twenty, one compared with 52, 9% during the first quarter 2020.
Yimeng Shi: Revenue from PaaS and SaaS service increased 43.5 percent from $1.9 million in the first quarter of 2020 to $2.7 million in the first quarter of 2021.
Revenue from Pos on a sauce southern increased 43, 5% from one 9 million in the first quarter of 'twenty to 'twenty. Two 2.7 million you saw that in the fourth quarter of 'twenty. One this increase was primarily due to the expansion.
Yimeng Shi: This increase was primarily due to the expansion in the number of our business partners that use our parts and soft service to provide local data connectivity service.
Remember our business partner that use our Pos in our self service to provide local connectivity service revenue from pasta sauce, a percentage of total revenue.
Yimeng Shi: Revenue from Parsons SaaS, a percentage of total revenue, also increased to 15.2% during the fourth quarter of 2021, compared with 10.9% during the fourth quarter of 2020.
Increased to 15, 2% during the first quarter of 2021 compared with 10, 9% during the fourth quarter I'm trying to 'twenty.
Yimeng Shi: Let us move to page 21, which shows a revenue breakdown of our two business segments, namely revenue from service and sales of product.
This us move to page 21, which shows the revenue break it down about two business segments eliminated revenue from surveys on a SaaS product.
Yimeng Shi: Our total revenue increased by 3.2% from
Revenue increased by three 2% from.
Yimeng Shi: $17 million in the fourth quarter of 2020 to $17.6 million in the fourth quarter of 2021. Revenue from service were $9.6 million, presenting an increase of 6.8% from 9%
17 million you saw that in the first quarter of 'twenty 'twenty $217 6 million go sort of in the fourth quarter of 'twenty 'twenty. One revenue from surveys were $9 6 million guests daughter is presenting an increase of six 8% from nine.
Yimeng Shi: million U.S. dollars for the same period of 2020. This increase was primarily attributable to increase in revenue from local data connectivity service and a power source service.
Million Gustavo for the same period of 'twenty 'twenty. This increase was primarily attributable to an increase in your revenue from Boca Theater connected up you saw this in.
Yimeng Shi: Let's turn to page 22 for the gross margins of our banners. Our gross, service gross margin increased to 46.1% in the fourth quarter of 2021, compared to 41.2% in the fourth quarter of 2020.
In the past soft service.
Let's turn to page 22, where the gross margins about Dennis.
Service gross margin increased to 46, 1% in the fourth quarter, a 10 31 <unk>.
Bear to 41, 2% in the fourth quarter about 2020.
Yimeng Shi: And our overall gross margins was 31% in the first quarter of 2021 compared to 31.4% during the same period of 2020.
And our overall gross margins was 31% in the first quarter 2021 compared to 41, 4% during the same period trying to 'twenty.
Yimeng Shi: The increase of our service cost margin during the fourth quarter of 2021 was primarily due to
The increase about service gross margin during the fourth quarter of 2021 was primarily due to.
Yimeng Shi: the increase of our pot source revenue, which has higher scores margins over other business revenues.
The increase of our parcel revenue, which has higher gross margins on the revenue mix.
Yimeng Shi: Let's now move to page 23, which shows a breakdown of our operating expenses, including shared business compensation.
Let's move to page 23, which shows the breakdown of operating expenses.
Share based compensation and the others.
Yimeng Shi: Excluding share-based conversations, operating expenses as a percentage to the revenue was 62% in the first quarter of 2021, compared with 83% during the fourth quarter of 2020. The past few years have been the peak time for research and development, and we will optimize.
<unk> share based compensation operating expenses as a percentage of revenue was six 2% in first quarter 2021 compared with 83% during the fourth quarter of 'twenty 'twenty.
The past few years have been the peak time for research and development and we will optimize that research and development cycle and it continues to improve operation efficiency all goodness.
Yimeng Shi: the research and development cycle and continue to improve our operation efficiency of our burners.
Yimeng Shi: Let's turn to page 24. Operating cash flow was lacked.
It's all tend to page 24.
Already cash flow once elective.
Yimeng Shi: $3.2 million during the first quarter of 2021, compared to negative $5.5 million during the first quarter of 2020. Our cash and cash equivalents and short-term deposits were $8.8 million as at December 31st, 2021.
$3 2 million during the fourth quarter of 10, 21 compared to negative $5 5 million U S. Dollar during the first quarter of 2020 cash.
Cash and cash equivalents and short term deposits were $8 8 million at December 31st trying to 'twenty one.
Yimeng Shi: Our capex was $0.2 million during the fourth quarter of 2021 compared to $0.4 million during the fourth quarter of 2020.
Oh, Capex was $22 million during the fourth quarter accompany one compared to <unk> 4 million.
First quarter of 'twenty 'twenty.
Yimeng Shi: CapEx as percentage to the revenue decreased from 2.2% during the first quarter of 2020 to 1.3% during the first quarter of 2020.
Capex as a percentage of the revenue decreased from 2.2% during the first quarter of 'twenty 'twenty, 213% during the fourth quarter I was trying to trying to.
Yimeng Shi: Next I'll move to page 25. Net loss during the first quarter of 2021 was $15.5 million compared to $12.4 million during the first quarter of 2020. Adjusted EBITDA was negative $5.1 million during the first quarter of 2021 compared to negative $7.9 million during the first quarter of 2020.
Let's move to page 25.
Net loss during the first quarter 2021 was $15 5 million compared to 3.4 meeting a startup during the fourth quarter of 'twenty or 'twenty. Adjusted EBITDA was negative five point in the 1 million guests on that given the first quarter of 2021 compared to elective pinpoint them.
9 million you saw there during the fourth quarter of 2020.
Speaker Change: With that, let me conclude today's presentations. Thank you, and we start our Q&A session.
With that made me conclude today's presentations. Thank you I know we start our Q&A session.
Yeah.
Speaker Change: Ladies and gentlemen, at this time, we'll begin the question and answer session.
Ladies and gentlemen at this time, we'll begin the question and answer session.
Speaker Change: To ask a question, you may press star and then 1 on your touchtone phone.
Ask a question you May press Star then one on your Touchtone phone.
Speaker Change: If you are using a speakerphone, we do ask that you please pick up the handset before pressing the keys. To withdraw your questions...
If you are using a speaker phone we do as you. Please pick up the handset before pressing the keys.
What's your all your questions you May press star two.
Speaker Change: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. At this time, we will pause momentarily to
For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.
At this time, we will pause momentarily to assemble our roster.
Okay.
[noise] and our first question today comes from Alicia.
Speaker Change: And our first question today comes from Lisa Thompson from Zax Investment Research. Please go ahead with your question.
Thompson from Zacks investment research. Please go ahead with your question.
Lisa Thompson: Hi, good evening. Thank you for that presentation. So I have a number of questions about the quarter. First, could you just tell us what's the current fully diluted share count now that you have a convert?
Hi, good evening.
Thank you for that presentation. So I have a number of questions about the quarter first could you just tell us what's the currently.
Fully diluted share count now that you have a convert.
Yeah.
[noise] Hi, Lisa can you can you can you repeat the question.
Speaker Change: Lisa, can you repeat the question?
Lisa Thompson: Yes, what's the current fully diluted share count?
Yes, Oh, what's the current fully diluted share count.
Now that you've issued a convert.
Yeah.
Hum.
Lisa Thompson: Yeah, well, we will disclose that the diluted shares take into account this convertible departure issues in this January . So that figure will be disclosed in the first quarter, only released this year.
Yeah, well, we will discover that they can vote the dilutive shares are taken.
Taking into account this.
Oh did pinch of Ishares in the in the in this generate so that's not that's a FICO web it is cut out that in the first quarter.
When you release them this year.
Okay.
Okay. So I just don't remember alright.
Speaker Change: As far as cash burn, where are you now? Is it a million dollars a month or less than that?
As far as cash burn what where are you now is it a million dollars a month or less than that.
Speaker Change: In the fourth quarter of 2021, we boned $3.2 million in US dollars for operational sales.
The first quarter tend to new one we filmed a $3 2 million you guys saw their operation the operation of that cash cash flow.
Speaker Change: cash cash flow. As of December 31st 2020, the company had cash and cash equivalent and short-term deposits.
December .
Defense Attorney 20, the company had cash and cash equivalents and short term deposits.
Speaker Change: $8.1 million and short-term investment at $12.6 million.
Eight 1 billion you saw that in short term investment trailed point 6 million startup so in January .
Speaker Change: So in January 2022, the company completed an insurance of a convertible departure through private placement with the proceed.
Generally our 'twenty to 'twenty two the company completed an assurance of a convertible debenture.
Private placement with proceeds.
Speaker Change: of $4.7 million based on the company's projection cash flow and its existing balance cash-to-cash equivalent.
A full set of meeting its dollar based upon the company's predictions catch CRO and existing balance of cash cash equivalents short term deposits and short term investments and I think the companies that are.
Speaker Change: short-term deposit and short-term investment.
Speaker Change: companies have sufficient funds for sustainable operations.
Our company's Oh, that's not a sufficient funds. So I was just picking up all the commissions and the companies has uh huh pick as our mix shifts to to successfully execute the pizza business, which includes our increasing revenue while controlling.
Speaker Change: And the company has taken some measures.
Speaker Change: to successfully execute its business plan, so which includes increasing revenue while controlling operating expenses to generate positive operating cash flow and obtaining funds from external source as well.
Operating expenses to generate because they do affect operating cash flow and it kind of sounds from external.
Speaker Change: So we expect the cash flow rate will be improving this year.
So that's well so we we besides the the cash boom right, we'll be improving and this year.
Speaker Change: materially. And so we expect to take into our guidance and others, we're managing the cash flows in a healthy position for this year.
Materially and so we are we expect them to.
Into I'll watch that guidance and all that so we were managing the cash flows that in our and a half into positions.
Yeah.
Speaker Change: So do you think you'll get to cash flow break even by the end of the year?
So do you think you'll get to cash flow breakeven by the end of the year.
Speaker Change: And that's where our expectations and we will achieve management will take efforts to achieve that target.
And that's what we are well ex Patriots I know, we are we will achieve our management to where I'll be I'll take a first two.
To achieve that so that's at a caucus.
Alright.
Speaker Change: As far as the income statement, could you say what was that $8.7 million in other expense?
As far as the income statement could you say what was that $8 $7 million in other expense.
What caused that.
Speaker Change: Um, you mean the breakdown of those, uh, operating expenses? Right.
Yeah.
You mean, the breakdown on this operating expenses.
Right.
Let's see that's a.
Can you are you there.
Yeah, what what is what's in that number.
Alright.
Speaker Change: What's in the number, the $8.7 million? What's in there?
What's in the number the $8 7 million what's in there.
Yeah.
They put in the 1 billion cash balance right now.
Speaker Change: No, $8.7 million other income on the income statement.
No $8 7 million other income on the income statement.
Sure.
All other income.
No.
Okay.
Speaker Change: Under general and administrative, right, there's $8.7 million in the
Under under general and administrative.
Right, there's a point.
$7 million and expense.
[noise] [noise] Lisa.
Speaker Change: Lisa, can we have feedback on this and the lines for these figures after this call to you? Is that okay?
Kevin can we have a fleet that this there's a and benign.
For this the figures are after this call to you okay.
Yeah.
Okay, that's not an easy answer.
Lisa Thompson: Also, could you give an update on...
[noise] can also could you give an update on.
Lisa Thompson: Do you still have the education order for tablets in Japan, or has that been canceled?
Do you still have the education order for tablets in Japan.
Has that been canceled.
Yes.
And when might that start to happen.
Speaker Change: Can I pass the question to Mr. Yeo or Zhao Guichen to answer?
Can I pass the question to our CEO .
Oh.
That's exactly true.
To answer this question.
Okay.
Zhao Guichen: No, no, no, no. I'm asking about the pad contract of Japan, right? So can you repeat your question? It's about pads in Japan, right?
No no no no no.
Okay.
The contract all right.
Yeah.
He's asking up all our path in Japan right.
Zhao Guichen: Yeah, the pet order in Japan is still, you know, going on, but because, you know, the school in Japan, you know, it's a face-to-face, you know, education, you know, restart again, so the speed is a little bit slower than our expectation, but still going on.
Yes.
The pad the order in Japan, you steer you know go your own thought because you know Uh huh.
Does the school in Japan.
It's the place, though you know Ah indication Lusaka.
He was talking so to speak.
You slowed even oh expectation.
So you know.
Speaker Change: Okay. And is there an explanation for why revenues in Japan are declining?
Okay.
And is there an explanation for why revenues in Japan are declining.
Speaker Change: Yeah, I think it's clear because, you know, when the COVID-19 happened, because local requirement is big, it's huge. But because face-to-face meeting, you know, because in the year 2021, the Q2
Yeah.
Yeah, I think it's clear because you know oh, the forced up and of course, when the COVID-19 happened because our local require many states.
It's huge but because face to face meeting you know after you close the year 2021, the Q2 Q3 and recovery on the Q4 I feel bad.
Speaker Change: Q3 and recovery and Q4 is because COVID-19 becomes worse again.
Because of COVID-19.
Violence are becoming once again before that because of the.
Speaker Change: But before that, because of the pandemic is getting worse, because of the vaccination, because of the new medicine come out, so face-to-face meeting in face-to-face education and remote working decreased in Japan.
You know are the the Oh got.
Cutting way up because although western nations, because like you know Uh huh.
The new medicines come out so basically batesville faced in my opinion.
Our face to face indication under remote working so decrease in Japan.
Speaker Change: that domestic 2.0 a little bit decreased.
Uh huh.
Let's take a 2.0 ended up being.
Decreasing.
Speaker Change: OK. And my final question is, are there any more products you plan to launch soon?
Okay.
And my final question is are there any more products you plan to launch soon.
Speaker Change: Yes, you can see that we have, you know, we have U5 Lumen, which is the first 5G product, the world's first 5G with the HyperCon solution that can switch between Wi-Fi, all the 5G, 4G, all the network.
Yeah.
Ah yes.
You can see though we have you know a U a E.
We have a unified lumen.
Which is the horse a G fast cheap cobalt.
Oh the war fighter.
With a hypercard solution.
Switch between a Wi Fi Oh, no five coupons you all an envelope so at least in the in the in the third quarter and that's because the lithium band only it only had only waste the Asia and.
Speaker Change: So this launch in the third quarter.
Speaker Change: And because the radio ban only with Asia and Europe radio ban, we don't have global radio ban at the moment.
In the Europe region, we don't have a global eagle at the moment.
Speaker Change: And recently we will launch our new product we call U50 with global radio band and a more competitive price and to accelerate the 5G product launch.
Recently, we have.
Launch of our new product, we call you five of Zillow with global radio and a more competitive price and a subtle read a five T. A you know a you know a product launch.
Speaker Change: That's one part, and the second part, we have more like a CPE IoT module with the Hypercom inside, so we are launching. As I mentioned in the first quarter, we finished testing for more IoT products, such as industrial routers.
That's one part and the second part we have a more like a CPE Iot module a waste to have come inside so we're launching <unk> as I mentioned in our in the first quarter with test. We finished the test people you know more Iot products, such as industrial load her.
Speaker Change: So we are launched in the fourth quarter of year 2022.
So we are launching in the fourth quarter of 2022, and you know a new module more competitive module will launch in a year or two so all of a sudden ah.
Speaker Change: And a new module, more competitive module, will launch in the year 2000, the fourth quarter of year 2022.
There of course and of course, we wanted out of the fourth quarter 2000, a 2022 and also so we have IP camera product launch from the first quarter of useful it's all of a sudden a ton to one that's more product come up including a five T, including a you know a more Iot product and also.
Speaker Change: And also, we have IP camera product launched in the first quarter of year 2021. That's more product come up, including the 5G, including the more IoT product. And also, we have more hypecom product.
Listen you know we have.
More have come.
Speaker Change: impact into our international roaming Wi-Fi as well.
Embed into our even though our.
In a nation of Leumi Wifi as well.
Speaker Change: All right, great. That's something to look forward to. Thank you. That's all my questions.
Alright, great that's something to look forward too. Thank you that's all my question.
Speaker Change: And our next question comes from Vivian Young from DiamondEquity. Please go ahead with your question.
Yeah.
And our next question comes from Vivien Young from Diamond equity. Please go ahead with your question.
Vivian Young: Hello, everyone. Thanks for taking my question. So we see the company maintain top line growth during the second half of last year with Johnson partnership with business partners and the past and start business growing. So we'd like to know why the company if that's a 4% to 21% year-over-year decrease in first quarter 2022 revenue. What's the main reason for the decrease in outlook?
Oh Hello, everyone. Thanks for taking my classroom. So we see the company maintain top line growth during the second half of NAFTA, you, Wisconsin partnership with business partners and the patents that's growing.
Growing.
So we'd like to know why as a company you've snapped up 4%. She can be one person yeah I'll be it'd be crazy for us because there are times you tend you to Ralph now what's the main reason for the decrease the outlook.
Okay.
Yes.
Vivian Young: The guidance for the first quarter of this year, 2022, that ranges between $14 million to $17 million. That's a decrease compared with the last year's, the first quarter of 2021.
And the guidance the guidance for the first quarter as there should be a.
Turning to Pat trying to shrink it too.
And that's a good range is between 40 million to $70 million. That's a that's a decrease a decrease a compare with that.
Yes that makes sense of course tend to be one, yes, I say it.
Speaker Change: Yes, as we said, COVID-19 has had an impact on the supply chain.
So you are we are we stayed at that's a COVID-19 stuff.
Uh huh.
Packed almost supply challenge.
Speaker Change: not in this quarter, the first quarter.
I mean this quarter, the first quarters and some are locked down and so I'm look downs, some bogged down a coach.
Speaker Change: some lockdowns, some lockdowns, some lockdown codes.
Speaker Change: in China, like Shenzhen and Dongguan, these kind of areas.
In China.
In China.
Ken and I can go on this the kind of areas and that that's a that's a DFAST. Some you know are difficult for manufacture them to give them a rate you said there are some older are at hand.
Speaker Change: And that gives us some, you know, difficulties for our manufacturer and delivering some orders at hand. And that's some reasons that we are aware of recently.
There's some there's some reason to believe we are well.
Speaker Change: so we expect the first quarter's guidance to be a little bit jolting compared with the
So that's why we are where we have a we expect that the first quote that so let's call that a guidance that there'll be.
Joel P compared with a loss yes.
Speaker Change: Ms. Chen, do you have some color on this first quarter guidance decreasing?
There's some some yeah that's it.
MS. Chen do you have some add some color on this call.
That's guidance that Christian.
Chen: Yeah, so many is because of two reasons. One is because of, you know, Omicron, you know, COVID-19 violence. And the second is because of the lockdown in China, in Shenzhen and in Dongguan, that's our manufacturer base.
Yeah.
Many used to be closer to reason why is because often you know closed you know are not COVID-19 Weldon.
It's because of the lockdown in China in a in a in a in Sunshine and Tor, that's all our manufacturing base.
Chen: less heavy impact on our revenue by the fourth quarter. But we believe in the second quarter, because of more countries open, the COVID-19 well-being impact will be decreased.
That's a heavy impact.
Our revenue so by the fourth quarter, if I would believe me you know Ah Ah.
Second quarter, yet because of more countries open and Oh Wow.
Call Me 19, well the impact will be decreased.
[noise].
Speaker Change: Okay, I understand. So my second question is regarding your ongoing restructuring. Can you provide some additional color on why the company adjusted the value structure and the local business in China and will this affect the company's future revenue in China as well?
Okay I understand so my my second question really regarding your uncle. He is capturing can you provide some additional color on why as a company.
Adjusted EBITDA used to capture and no co business in China.
After the Companys two Rodney in China as well thanks.
Speaker Change: Yes, as we disclose this year, we continue to evaluate our business plan and we have decided to adjust our business model in China.
Yes, as we disclose and they said this oh, we we continue to evaluate our business plan and we have decided to adjust our business model in China.
Yes, So Oh March 17 Tucson.
Speaker Change: 2022, the equity of VAE was transferred to the Shenzhen Euclidean Technology Limited and original VAE agreement were terminated.
Tucson tended to the equities all day, what's transferable to the Xinjiang your colleague to Golar LNG limited and the original agreement was terminated so we believe there's a restructure our restructuring will not affect our U can I make one point, though I should note that exact can you get the service in China.
Speaker Change: So we believe this restructuring will not affect our Euclidic 1.0 in the National Data Connectivity Service in China. So we will transfer and carry out the PaaS SaaS platform service in China in cooperation with the local business partner, such as we invested in our NBNO Beijing Huaxiang Linxin technology. So we should have the required license to provide local data connectivity service in China.
So we are comfortable on the carry out the pasta sauce.
So that's China in cooperation with the local business partner such as our investment.
We invested a N V I L. A beijing actually I mean, it shouldn't take a lot of it so.
So we should have that would be quite a license to provide local with that kind of gives me surveys China.
Speaker Change: So we adjusted the model in China similar as we did in Japan.
So that's a that's a we adjusted the model in China are similar that we did.
Speaker Change: So you can see our PowerStars ecosystem and our PowerStars service.
In Japan.
So you you can you can see our pasta sauce, our ecosystem and our POS software service apply to to corporate wasted a local apartment building upon either.
Speaker Change: apply to cooperate with a local partner, either in Japan, in China, or other regions of the world. So that's why we adjusted this model to execute part-size platform-centric.
And in China, either all the other regions of the World. So that's we adjusted the model to to use it.
Cute pop signs platform centric.
Speaker Change: It's a business model and strategies as well.
It's a business model and strategies as well so and that's that's a I think the key a key reasons we we.
Speaker Change: So that's, I think, a key reason we adjust the VAE models in China. I think this gives us a more secure position in compliance and operation as well, and it
Just the I E.
Our mall dose in China, I think it does give us that give us more some more off the Q a secure position in compliance and operation as well and then on the game and they gave us out.
Give out that Oh.
Speaker Change: position are cooperated with the local partner to do the business in local market.
Position cooperated with a local partner to do that business and Melco no coke market.
Okay. That's all my questions. Thanks.
Okay.
Speaker Change: And ladies and gentlemen, at this time and showing no additional questions, I'd like to turn the floor back over to management for any closing remarks.
And ladies and gentlemen at this time in showing no additional questions I'd like to turn the floor back over to management for any closing remarks.
Speaker Change: Thank you once again for joining us today.
[noise] tend to Oh, Germany today.
Speaker Change: If you have further questions, please feel free to contact Euclid Link's investor relations through the contact information provided on our website or Apple's eGrowth investor relations.
Two questions. Please feel free to contact the clothing, that's a relation.
Contact information provided on our side is that how athletic with Investor Relations.
[noise] and ladies and gentlemen, I apologize. This is the conference operator, we do have a late joining question from Jacob Kurtz from Greenwich Global.
Speaker Change: And ladies and gentlemen, I apologize, this is the conference operator, we do have a late joining question from Jacob Kurtz from Green Ridge Global. Jacob, please go ahead with your question.
Jacob Please go ahead with your question.
Hi.
Jacob Kurtz: So, daily active terminals continue to increase in the current quarter, but total data consumed slipped compared to the third quarter. Should we expect to see both numbers rise over the course of 2022?
So daily active terminals continues to increase in the current quarter, but total data consumed slipped compared to the third quarter.
Should we expect to see both numbers rise over the course of 2022 .
Jacob Kurtz: This data consuming per daily active terminal will be a change.
This this data consuming consumed means oh 30 active terminals.
It will it be will it be a change.
Jacob Kurtz: in terms of this package selling the mix.
In terms of there's a there's a packet sailings that makes them different Cabot policy.
Jacob Kurtz: and different tariff policy that the customers choose. So that's a change in statistics.
The caution about shoes, so that that's a that's a change it's a.
Jacob Kurtz: figure. So, we cannot accurately expect a forecast. This data consumings per daily active terminal will be increasing somehow. We don't know. We cannot give this clear color on this kind of a consumption.
Statistics I forgot them. So we are we cannot we cannot accurately expect forecast them. There's a there's a set of consumers who are daily I could tell me that weren't being christine to somehow.
We don't know are we then I would just add that we cannot give this.
There's a clear color on this.
Jacob Kurtz: per this average steady terminal.
It's kind of about consumption.
Uh huh.
And rich steady permanent.
Speaker Change: Okay, and then my next question, assuming shell restrictions stay roughly similar to what they are now in China for the remainder of 2022, what percent of total revenue do you expect from 1.0 and 2.0?
Okay and then my next question, assuming travel restrictions stay roughly similar to what they are now in China.
The remainder of 2022 what percent of total revenue do you expect from one at one point or two point al.
Speaker Change: And you specifically mentioned the revenues from China, mainland China.
You specifics dimensions are they said revenues from China mainland China.
Sorry, what was that.
Alright can you.
Can you clarify your question.
Speaker Change: Assuming travel restrictions stay similar to what they are currently in China for the remainder of the year, what percent of total revenue do you think 1.0 and 2.0 will account for by the end of the year?
Oh.
Assuming travel restrictions stay similar to what they are currently in China for the remainder of the year what percent of total revenue do you think one point or 2.0, well account for by the end of the year.
Yeah.
Speaker Change: the COVID restrictions are still implemented in China.
There's a there's a COVID-19 restrictions are you still you still have that.
Mandates are in.
In China, our cross across that cross city, and something Oh, So try on the Chinese Oh the border.
Speaker Change: cross city and something. So the Chinese border has not been opened.
Speaker Change: to the outside. We don't know when China is open to the outside.
Be it opens to the outside are we.
We are we don't know we don't know when that is that the Chinese are open.
Open to the outside yes.
Speaker Change: But we do expect the border.
But we are we do expect that the boto.
Speaker Change: has been open and they lift up in U.S., European and some Asian countries like Japan, Singapore, some other Asian countries as well. So, as you're aware, we run a business, across worldwide, we have a diversification business for more than 50 countries and regions.
That has been opened on that.
Lift up in.
In U S European.
And there's some Asia countries like Japan, Shanghai, Pope some all yet.
<unk> contracts as well so.
Well, we have we've got then that I saw.
Kosovo wise, we have a diversification.
Goodness, but more than 50 countries and the regions. So, yes, China, China, sorry contributions into some more of that at this moment are the rest of it where are the rest of the outside of the China Madness.
Speaker Change: So yes, China's contributions.
Speaker Change: is smaller at this moment. The rest of the world, the rest outside of the China mainland, when there's international travel, it has been recovered.
That when there's a international travel is a has been a recovers due to that's a open open not all this so we are we expect that we have a the international connect these surveys will be improving outside of China. This year is not the word b give us a growth.
Speaker Change: due to the open up of the borders. So we expect that we have the International Connected Service will be improving outside of China this year. And that will give us a growth.
Speaker Change: and improve our profitability as well for this year.
And they improve our profitability as well for this year.
Speaker Change: Yeah, I have some more comments from the chief.
Assam won't come on you Uh Huh I've.
Speaker Change: So in the China market, so we don't expect.
None of the chip so a fork in the China market. So we don't use back one point the old business of recovery because the way you would think maybe and obviously next year. We just thought that you know are opened the Bulldog China, that's all our forecast.
Speaker Change: 1.0 business recovery because we think maybe end of this year or next year, we'll start opening the border of China. That's our forecast in the worst case. We don't think that will happen in China for opening the whole year.
Case, though I don't think that that's what will happen in China opened up Oh, yes. So that's why so in China, where our menu focus the one that you know on the old business and the Iot business.
Speaker Change: So that's one. So in China, we are mainly focused on the 2.0 business and the IoT business.
Speaker Change: So that's in China. So for international business, so we only know to very, you know, know to very, you know, optimized data. For example, we don't think, you know, under the COVID-19 impact.
That's in China, So for information of business. So we are only at no two woody.
Oh no no no no no two are very you know all of the team.
Data for example, we don't see you know Oh I don't know.
COVID-19 impact so you know what kind of pace of weight. The only thing CDR. We're open what exactly we think in Q2 are some country opened up.
Speaker Change: So in the worst case, we don't think the world open really quickly. We start to think in Q2, some country open the border of the country, but majorly of the outside China countries will be start from the Q3 or Q4 to open the country. That's our assumption.
On the border of the country are majorly outflow you know are the outside China countries, a weird be stopping on the Q3 I'll queue photos to open the country, that's all our assumption.
Okay.
Speaker Change: And then my next question, the markets outside of China and Japan have been showing strong growth recently. Are there any countries or regions driving this, and do you expect to see growth continue to be faster in these regions?
Hum.
My next question.
The markets outside of China, and Japan have been showing strong growth recently are there any countries or regions driving this and do you expect to see growth continue to be faster in his regions.
Speaker Change: Yeah, so once we started the two pro challenger, one is about the, you know, regulation, you know, challenger and also the, you know, for the IOT. So we, and also the recovery of 1.0 in China, we believe we will regain the fast growth in China.
Yeah. So was waived fault in there to coach and Joe Why don't you stop all are then you know regulation you know a challenger and Oh. So you know a full of Iot. So we and also sit on recovery of one point, though in China. We believe we weird weekend fast growth in China.
[noise] for all this Oh, that's a plus.
Speaker Change: For others, the potential to fast growth, we expect Japan's market and the U.S. market and European markets will be the main growth for this year.
Attention to fast growth, but we are we expect that we expect that Japan small cage.
In the U S market and the European markets and is that you said would be the man.
Dennis for this year.
Speaker Change: Okay, awesome. And then last question. Was the settlement with CMO Holdings completed?
Okay Awesome and then last question, what's the settlement with our CMO Holdings completed.
Sorry can you repeat.
Speaker Change: Now, was the settlement with CMO Holdings completed?
Now what is the settlement with female holdings completed.
Speaker Change: That was set up last year. We announced the settlement agreement last year, so it's peaceful. No more negligence between the Ukrainians and the Sino-Ukrainians.
Yeah.
But that was a that's what's that yeah that would say topside Lafayette Assembly.
The allowance alongside 50 minutes.
In Las Vegas.
So uh huh.
Peaceful.
No more memo in education, so between the two.
Ah you're hurting because I'm a female yeah.
Okay. Thank you I appreciate it.
That's all.
Thank you.
Speaker Change: And ladies and gentlemen, with that, we will conclude today's question and answer session and conference call. We do thank you for attending today's presentation. You may now disconnect your lines.
Okay.
And ladies and gentlemen, with that we will conclude today's question and answer session and conference call. We do thank you for attending today's presentation. You may now disconnect your lines.
Thank you.
Speaker Change: Thank you. Oh, sorry. Sorry. Thank you.
Thank you.
Sorry, sorry.
Yeah.