Full Year 2021 Luokung Technology Corp Earnings Call

Ladies and gentlemen, thank you for your patience. You are holding for today's Lilkung Year End 2021 Financial Results Call. At this time, we are gathering additional participants and will begin momentarily. We appreciate your patience and ask that you please continue to hold.

Ladies and gentlemen, thank you for your patience you are holding for today's work on your end of 2021 financial results call. At this time, we are gathering additional participants and will begin momentarily. We appreciate your patience and ask that you. Please continue to hold.

Go, reserved man. You You

[music].

Good day and welcome to your Liu Kang year-end 2021 financial results call. All lines have been placed on a listen-only mode and the floor will be open for your questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to Alice Zhang of the Equity Group. The floor is yours.

Good day and welcome to our little come at year end 2021 financial results call. All lines have been placed on a listen only mode and the floor will be opened for your questions and comments. Following the presentation. If you should require assistance throughout the conference. Please press star zero to reach a live operator at this time. It is my pleasure to turn the floor.

To Alister long of the equity group the floor is yours.

Thank you. Good morning, everyone. Copies of the 2021 year and financial results press release, which was issued after market close yesterday can be found at the investor relations section of the company's website www.locom.com

Thank you and good morning, everyone copies of the 2021 year end financial results press release, which was issued after market close yesterday can be found at the Investor Relations section of the company's website www dot dot dot com.

Before we get started, I would like to note that except with respect to historical information, statements made in this conference call may constitute for working statements within the meaning of the federal securities laws, including statements relating to trends, the company's operations and financial results, and the business and products of the company and its subsidiaries.

Before we get started I would like to note that except with respect to historical information statements made in this conference call may constitute forward looking statements within the meaning of the federal securities laws, including statements relating to trends the company's operations and financial results and the business of products of the company and its subsidiaries.

LocWong's actual results may differ materially from the results anticipated in this forward-looking statement as a result of various risks and uncertainties underlying our forward-looking statements, including risk and uncertainties associated with COVID-19 and its impact on the economy and on our business, as well as those risks described from time to time in LocWong's filings with the...

Actual results may differ materially from the results anticipated in the forward looking statements as a result of various risks and uncertainties underlying our forward looking statements.

<unk> reached the uncertainties associated with the shares associated with COVID-19, and its impact on the economy.

All of our business as well as dose risks described from time to time in low cost filings with the SEC, including our latest form 6K and subsequent a good point.

including our latest Form 6K and subsequent reports. LOCONV specifically disclaims any obligation to update or revise any form of looking statements, whether as a result of new information, for a development or otherwise, unless required by law.

<unk>, specifically disclaims any obligation to update or revise any forward looking statements.

As a result of new information.

Or otherwise unless required by law.

A replay of this call will be provided through a link on the investors relations section of our website shortly after its conclusion.

A replay of this call will be provided through a link on the investors relations section of our web site shortly upwards conclusion.

On today's call, local chairman and CEO Mr. Xu Song Song would like to take the opportunity to introduce Dr. Dongfu Zhang as the president of the company. And Dr. Zhang will begin the call with some opening remarks.

On today's call low cost chairman and CEO . Mr. Shifts also we'd like to take the opportunity to introduce Dr. <unk>, Dr. John <unk>, the president of the company and John will begin the call with some opening remarks, the company CTO strip out mainly will continue with the discussion of the latest operational development and CFO Mr. JV.

The company's CTO, Mr. Ba Minli, will continue with discussion of the latest operational developments and CFO , Mr. Jie Yu, will conclude with an overview of the financial results and outlook for 2022. As a further note, Mr. Sloan will be here to address any questions our investors may have in the Q&A.

I will conclude with an overview of the financial results and outlook for 2022 as a further note. Mr. Sato will be here to address any questions or investors may have in a Q&A session.

A Q&A session will follow management's prepared remark. If any individuals would prefer to email questions they'd like to ask during the session, feel free to email me directly at a-b-h-a-n-g at equityny.com. And please specify whether you would like to have me read your name as well. With that, I'll turn a call over to Dr. Dong-Fu Zhang, president of the law class. Please go ahead, Dr. Zhang.

Are there any session will follow management's prepared remarks events individuals who prefer to email questions they'd like to ask during the session feel free to email me directly at aviation AMG at equity and wide Dot com and please specify whether you would like to have two regional as well with that I will turn the call over to Dr. Don for Johnson President of <unk>.

Please go ahead John .

Thank you, Alice. And thank you everyone for joining us this morning.

Thank you Alice.

Thank you everyone for joining us this morning.

I'm joined today by the members of the local executive team and we are excited to have the opportunities to discuss local schools in 2021 with the investment community today.

I'm joined today by other members of our low coffee executive team and we are.

Good to have the opportunity to put these comparable growth.

<unk>, one weizmann communicate debate.

We are very pleased to have achieved a significant top line in the growth of the gross margin improvements for 2021. This includes delivering the record annual revenue of 145 million U.S. dollars, more than seven times less of the 2020.

We are very pleased to have achieved with significant top line growth gross margin improvements as more temporary type. One this included delivering record annual revenue outlook.

145.

And you are installed on more than seven times that of the Atlantic.

2021 is the year in which we are working to build strong foundations for future growth.

<unk> hundred one.

And basically we are working to build.

With a strong foundation for future growth requires rapid rapid growth company connected by the call predict that all of our survey show potential technology, if you will <unk> value.

Rokon is a rapidly growing company connected by the core belief that our spatial-temporal technology will increase our value proposition.

<unk> position.

A society is a whole city to harness the intelligence that can connect cars, cities and people. LOKON considers itself a major player in enhancing people's daily lives and their surroundings and the connection between the physical world and our digital space.

Our society as a whole seek to harness the catheters.

Connected cars.

Can you send people low carb consider itself as a major player in the U S in People's Daily lives.

So wrong deals ambev connections between the physical world and our digital space.

We have established a leading position in the HDMAF IoT intelligence big data, alternative driving and smart transportation, vehicle road cooperation, carbon neutrality and remote sensing data service, which are the necessary building blocks of digital change.

We have established the lithium.

The HD map Iot intelligent big data autonomous driving and smart transportation real cultural collaboration carbon child.

Charlie.

And is it more centered in theater service.

Rich all the necessary building.

Building products of digital tools.

Digital change is virtually representation that serves as a real digital counterparts of physical objects or processes. This is the core and critical engineering and architecture of ROCON. ROCON's course is centered on the connections between the physical world and our digital space. Along with our three key basic pillars.

So what shortage.

Reputation.

<unk> digital products.

So our physical objects all process. This is a boy in the critical enterprise architecture of local warehouse growth centers on the connection between the physical world against all of our digital space.

Along with our three key places Peters Smart transportation, the mouse data sensing and RBS, we saw revenue quality in all three of these areas in 'twenty or 'twenty one.

smart transportation, remote data sensing, and LBS. We saw revenue growth in all three of these areas in 2021, and are pleased to help continue to win large global customers that apply our technology and solutions into their products and their service for their purpose.

Please to help to continue continue to win large global customers that apply our technology and solutions and put the products are necessary for the purpose.

We believe we have only just began to realize the potential of our smart transportation and remote testing facilities.

We believe we have only just began to realize the potential of a well.

Smart transportation and remote sensing closely.

The acquisition of EMAS Go, which we closed in March 2021, we have the most transformative developments for local historians this year.

The acquisition of <unk>, which we closed in Denmark shop.

So as you can see one that we have the most of the chart transformer.

Elements for low cost carriers. This year things that you can take rating in that go to our operations.

since the integration in that go to our operations, it has become a key drive, driver of the low cost of future growth. With the positive momentum of the company, we see a unique and industrial, industrial leading technology that advantage in low cost existing out there.

Has become a key drive driver to offer low cost for future growth with the positive momentum of the company with the unique industrial.

Industrial leading technology with that.

Advantaged low cost existing out there.

business as well as the smart transportation and the natural resource asset management service.

Actually all of the smart transportation and natural resource assets measure them service expanding the depth and the breadth of the application, which low com can establish itself as a leader.

expanding the depth and breadth of the applicants, which Nokong can establish itself as a leader.

We believe that the road to vehicle coordination is the cornerstone of smart travel and autonomous driving in the future.

We believe that the growth to vehicles coordination is the cornerstone of the smart.

Smart travel in the autonomous driving in the future.

Smart class requires smart roles, which is for China is very good at building smart roles. And we are actively developing smart solutions for both vehicles and the roles. For vehicles, we expect the strategists to secure that in-app goals positioned as the leading group.

The back half of the crowd is tomorrow's Richie.

While China is very good at that building smart rolls and we are actively developing swap small solution for both the vehicles and the dose.

Vehicles today.

The strategics to secure that.

<unk> position as a leading.

18-map provider in the fields of the autonomous driving data service and the simulation service and the full combination AI service. We, Mokwang, use our map as the combination tools for the environments that are around us.

It seemed that provider in the field talk about autonomous driving data service.

The simulation services.

And the four simple combination AI services.

Low quality use our map.

Cognizant tours for the environments that are ground us.

For rules, we are actively promoting the small rules and service based on ROCCON's special temporal digital platform, aiming to exercise assistance that they express operators in managing their digital assets more securely and efficiently.

We are actively promoting this module with them serviced.

Based on your cost ratio temporal.

Digital platform.

Aiming to upsize our system, thereby express operators in managing magazine digital assets more securely and efficiently.

and achieve the vehicle to roll data communication. These efforts are validated through our service providing for the out car makers and the top tires, autonomous driving companies as well

<unk> achieved with our vehicle.

The raw data communication efforts.

Efforts validate through our service providing for the outcome acres and the top tier as a partner thats driving companies as well that the projects.

low-quant implementing in the fields of smart highways such as the Chinese Changzhou Express highway. That is a force in China that we expressly use the HTML.

Locum implementing <unk> smart.

Smart highways such as the <unk>.

Chinese.

Tom to your express highway that is of course.

China.

Firstly the HD.

HD map.

Moving from our second business pillar, naturally sourced asset management.

Moving from our second second does it appear like natural resources.

Management, although local service do not directly so the issue of Starbucks coffee.

although local service do not directly solve the issues of

carbon emissions, we believe that our data service can help policy makers, industry regulators, and market service participants make their policy.

In Washington.

We believe that our data service can help policymakers industrial regulators and market participants.

The.

better decision by providing access to real-time situation and monitoring and data change.

Specialty efficient by providing access to real time, a situation that the monitoring and data change.

as they continue to try to reduce the carbon emission and to serve as an important digital platform for carbon emission trading.

We continue to deliver.

As they continue to try to deal with the carbon emission and to service as important digital platform for carbon emissions trading.

We believe that Rokon has established China's most powerful remote sensing data engine.

We believe that Broadcom has established the Chinese China is the most powerful remote sensing data engine that integrates solutions remote sensing data HD map and their arsenal of Iot sensor theater <unk>.

That integrates high resolution remote sensing data, AC map and thelitePH tone, map and the worst of IoT's densities.

Enabling us to launch the most sophisticated data process service, including our recent launch, Holographic Special Temporal Products and the Data Fusion Service, offering for the natural resource monitoring and carbon-sink control.

And as long as the most efficient most sensitive data personalized service include our recently launched Hello breakfast special temporal products and data fusion service.

Operating for the natural resource monitoring and the carbon sink accounting.

We have signed several contracts for a carbon sink service in Anhui.

We have signed several contracts fall at carbon sink service.

Sure.

I don't believe province, China.

As an RBS data service provider of the information flow management and the market service, so-called RBS business is powered by its integrated

ISI.

Our best data service provider all the information flow management time that Mac has serviced slaughterhouses Rps I hope yes.

This is powered by <unk>.

Takeaway two.

platform is in the capability to manage the entire lifecycle macro-service from planning, ordering, fulfillment, and then conversion, monitoring, and reporting. All of this is behind our ability to grow revenue nearly 70% or more.

Platform and the capability to manage the entire life cycle macro service from planning offering fulfillment and the condition monitoring and reporting.

All of this is behind the whole lot of ability.

All revenue and <unk>.

Seven.

100% year-over-year, our significant R&D investments and ongoing efforts to extend our existing partnership based on help, and enable us to achieve this record.

100% year over year, our sick Nathan the R&D investments and the ongoing efforts fleets tend to all existing pad I'll say, but based on.

Enable us to achieve record revenue growth.

This is the only beginning of the ROKRON's long-term prospect. Please hold on. The subscriber you dialed is busy now. With the success of stakeholders and many others, we have overcome the challenge of DOD matters in the first half of 2021.

This is the only beginning on all counts.

NIM goes out of Yahoo.

Joe Please hold Amit with subscribers.

Now all of Us know how.

They called Us and many other.

Oh, okay, but the challenge of <unk>.

First half without the plenty of countries right.

We will not reflect here. With this particular concern behind us, we are pleased to have been able to put our focus on our vision and the growth of our business in 2020.

We will not cross here with this.

So behind that please.

Hum.

We're able to put all our focus on our vision and the growth of our business in terms of your accounting country.

2022, we fully commit to accelerating the growth and improving our bottom line as well.

It's unclear to me remain fully committed to it.

Accelerating the growth and our improving our bottom line results.

five-plus months in this year, we are optimistic about the company's growth potential and looking forward to sharing more development with the environment community in the coming quarters. I would like to turn the call over to Mr. Baomin Li, our CTO. For more detailed discussions of our operations, Baomin, please go ahead.

Five months into this year, we are optimistic about the company's growth potential and looking forward to sharing multi vitamin D. C. As you said.

Community in the coming quarters.

I would like to turn the call over to stop all bnb, our CTO for both.

Detailed discussions of our operations I mean please.

Please go ahead.

Thank you Dr Chang.

I would like to highlight some of the local recent significant operational development.

I would like to highlight some of our loyal clients a recent significant operational developments.

In February 2022, Luo Kuan announced that his operating affiliate EMAC Go has began providing banking services for two new Ford Motor Company vehicle models.

In February 2022.

That is our premium affiliate E. Michael has began providing banking services for two new forward a module company vehicle models.

Both models are equipped with four Blue Cruise active driving assistance system, which supports R2 autonomous driving function as defined by SAE International.

Both models you claims because as forest blue crews active driving assistance systems.

Which supports our two autonomous driving function as defined by SAE International.

This is the validation of eMethical's leading market position in providing matching services.

This is a validation of EU, Mexico, leading market position, you're providing banking services.

And we look forward to expanding our partnership in the smart transportation area, not only with Forbes, but other top tier automakers as well.

And we look forward to expanding our partnership in the smartphones.

Not only with Forbes, but other top tier automakers.

In March 2022.

Luo Kuang announced that our operating affiliate agreed to acquire Beijing Hongda Jiucong Technology Development Corporation Limited.

<unk> announced that our <unk> affiliate agreed to acquire a baking home that technology Development Corporation limited.

a leading big data service provider for intelligent transportation and connected vehicles in China.

A leading big data service provider for intelligent transportation and connected vehicles in China.

This is a strategic acquisition for RoQua to take advantage of Honda JiuTong's vehicle data processing expertise, and hence, improve our intelligent highway data management system capability.

This is a strategic acquisition for railcar.

To take advantage off for home that you would tell me the vehicle data processing expertise.

Hence improve our intelligent highway data management system capability.

and provide additional capabilities in driving assistance to improve safety and energy efficiency when combined with our HD map services.

And provide additional capabilities and driving the assistance to improve safety and energy efficiency when combined with our HD map services.

We are very excited about the insights Hongda Jiu Tong will bring to the company in the fields of autonomous driving, assisted driving, intelligent transportation, and the synergy it creates with our existing products and services.

We are very excited about the new sites that you would want to bring to the company.

In the few autonomous driving assisted driving intelligence transportation and the synergy it creates.

Existing products and services.

We expect to close the deal in the second quarter of 2022.

We expect to close the deal in the second quarter of 2022.

In April 2022, Roquel announced the launch of its remote sensing, holographic spatial temporal portfolio of products and services for natural resource monitoring and carbon sink accounting.

In April 2022.

<unk> announced the launch office remote sensing holographic spatio temporal portfolio of products and services for natural resource monitoring on the carbon zinc content.

the launch of the series of products and services and its commercial application in a couple of country-level regions enabled us to seize a greater opportunity in China's largely untapped market of carbon neutrality and the natural resource management.

The launch of the series of products and services and if a commercial application in a couple of country level region you.

Enabled us to see is a greater opportunity in China.

Largely untapped market of carbon neutrality, and the natural resource management.

The new portfolio of offerings covers areas like carbon sequestration.

The new portfolio of offerings cover areas like carbon sequestration.

forestry, agriculture, and other fields.

<unk>.

Great conquer and other fields.

and Luokung anticipates expanding its range of services.

And the lower anticipated expanding its range of services.

to various application scenarios such as carbon emissions, environmental protection, water conservancy, disaster emergency management and the March Mall in 2022.

Various application scenarios, such as carbon emissions environmental protection water Conservancy disaster emergency management and much more.

In 2022.

In May 2022, Mokwala announced that its operating affiliate Beijing bought AOT Intelligent Corporation Limited has signed a service contract to provide research institutes of the highly ministerial transportation with the electronic blockchain data and certificate storage platform services.

In May 2022.

<unk> announced that if our premium affiliate Beijing Park, Iot Intelligent Corporation limited.

Find a service contract to provide research Institute without the highly Ministry of Transportation is.

Electronic blockchain data and certificate storage platform services.

We are very pleased to announce the cooperation with the Highway Research Institute, which is a leader in integrating scientific research and industrial development related to highway transportation.

We are very pleased to announce the completion of the highly research Institute.

<unk> is a leader in the <unk>.

Greetings Fantastic research and industrial development.

Related to highway transportation.

Qualcomm has been actively promoting the application of blockchain technology in various fields of spatial temporal big data. And this contract marks the beginning of our commercial services in the fields of highway transportation.

The Ohio has been actively promoting the application of blockchain technology in various fields of special temporary bigger data.

And this contract marks the beginning of our commercial services in the fields of highway transportation.

We anticipate strengthening our relationships and expanding our scope of blockchain services with more enterprises and institutional partners that recognize our competitiveness in highway confrontation.

We anticipate strength of our relationships and expanding our scope of blockchain services with more in the prices.

The tuition and the partners that recognize our competitiveness highway transportation.

Our business is centered around our proprietary technologies and expertise in HD maps and the multi-source intelligent spatial and temporal big data, which is further supported by the long-term relationships we have established with reputable global partners and customers.

Our business is.

Centered around our proprietary technologies and expertise.

HD maps and the molecule intelligent peso income per our PK data.

Reach is further supported by the long term relationships.

We have established reputable.

Reputable global partners and the customers.

While we remain committed to investing in technology improvement and product expansion to solidify our leadership position in key technology areas, our partnership base

Now we remain committed to investing in technology improvements.

The products and the pension to solidify our leading positions in key technology areas.

Our partnership base.

Is critical for our growth.

and we continue striving to establish new relationships.

And we continue striving to establish new relationships.

while deepening existing cooperation with players in the wide spectrum of industries.

Now deepening existing cooperations.

<unk>.

Spectrum of industries.

Overall.

We are proud of what we are building here at Lowell Park.

We are proud of.

What we are building here at a lower cost.

And I'm very pleased with the progress we have made.

And I'm very pleased with.

With the progress we have made.

With that I will.

I will turn the call over to our CFO , Jay Yu, for a brief review of the financials and our outlook for the year. Jay, please.

I'll turn the call over to our CFO Jay.

For a brief review of the financials and our outlook for the year.

Jay please.

Thank you, Bonin. Thank you all for joining us. I will quickly review the financial statements and encourage each of you to review both our press release and the formal tuning ads, which will be filed with the SEC later.

Thank you Bonnie.

You all for joining us I will quickly review the financial statements and encourage each of you.

To review, both our press release, and our form 20-F, which will be filed with the FCC later.

For the year ended December 31, 2021, we recognized total revenue of $145.1 million, compared to $18.3 million in the prior year. The increase was primarily a result of $113.5 million in increased revenue contribution from the LBS business, as well as substantial growth.

For the year ended December 31, 2021, we recognized total revenue of $145 1 million compared to $18 3 million in the prior.

Year. The increase was primarily a result of $135 million increase the value contribution from lbs business as well.

Potential growth.

in the software and service business and the smart transportation business. Our cost of revenue increased to 129 million, which was a proportionate increase to total revenue during the period and was primarily attributable to traffic acquisition costs related to the LBS.

In the software.

Some of this business and the smart transportation business.

Cost of revenue increased two.

$129 million, which was proportionate.

Increased to total revenue during the period and what's permanently attributable to traffic acquisition costs related to the Lps.

we were able to achieve a higher perfect margin of 11.1 percent compared to

We were able to achieve a higher gross profit margin of 11, 1% compared to.

4.3% for the year 2020.

Four 3% for the year 2020.

which was primarily driven by value-added service and improve the contribution from the software and service and the smart transportation business that tend to have higher margin.

Which was primarily driven by value added assemblies and improve the contribution from the software and service and a smart transportation business that tend to have higher margins.

Operating expense increased to 81.7 million compared to 41 million, mainly due to

Operating expense increased to $81 7 million compared to $41 million, mainly due to.

increased expenses in salaries and shared base compensation for adding personnel in the R&D department salaries and additional marketing personnel as well as a promotional and marketing expense. Moving to the balance sheet,

Interest expense on E salaries, and the share based compensation for adding personnel in the R&D Department salaries.

Additional marketing personnel.

From a promotional and marketing expense moving to the balance sheet.

As of December 31, 2021, Wukong's cash balance was $16.4 million, compared to $0.07 million as of December 31, 2020. The net proceeded to be raised from the issuance of shares in 2021, primarily due to the closing of the e-Metgo transaction and the general corporate purpose of day-to-day operations.

As of December 31st 2021, <unk> cash balance was $16 2 million compared to $10.

$7 million as of December 30 <unk>.

2020.

The next preceded the risks from the issuance of shares in 2021 permanently links to the closing the met coal transaction.

The general corporate purpose of day to day operation.

Enetgo has been critical in opening up various opportunities for the company's 3K business pillar, smart transportation, natural resource asset management, and LBS and smart industry service.

<unk> go has been critical.

Opening up various opportunity for the company's three key business pillar Smart transportation natural resource asset management, and <unk> and smart industry service.

We are very, very pleased to have more than exceeded our goal of generating $100 million in revenue in 2021, beating this projection by 40%.

We are very very pleased to have more than exceeded our goal of generating 100 million exams.

And even to substitute one beating this projection by 40.

5.1 percent. We are now focused on 2022 and beyond.

Slide 41%.

Now <unk> <unk> and beyond.

Further, strengthening our competitive advantage and streamlining our business to improve both

Further strengthening our competitive advantage.

And streamlining.

Our business to improve bottom line results.

Having established a solid foundation for further girls in 2001, I would go as to continue growing the existing business, which including LBS and Smart Industry Service, Smart Transportation, and Natural Resource Asset Management.

Having established a solid foundation for further growth in 2021.

Our goal is to continue growing the existing business.

<unk>, including.

Lbs, and a smart industrial service, so much smart transportation and natural resource asset management.

As I mentioned, our gross profit margin increased to 11.1% in 2021, which with the continuous optimization of our self-developed LBS intelligence advertisement platform in 2001, we expect gross profit margin will improve over time as we offer

As I mentioned our juice.

<unk> margin increased to 11.

0.1% in 2000.

Kidney, which reached the continuous optimization of our self developed lbs intelligent advertisement platform in to Q1, we expect gross profit margin will improve over time.

As would be offering value added services.

As the company continues to diversify its revenue streams with increased contribution from smart transportation, from natural resource asset management, which tend to be higher margin business, we anticipate improving our margin portfolio and create more favorable revenue.

As the company continued to diversify its revenue streams with increased contribution from smart transportation from natural resource asset management reached tend to be higher margin business.

Paint improving our.

Margin portfolio.

<unk>.

More favorable revenue mix.

With the addition of more than 500 new stocks, we have built a very strong team in taking our R&D effort to a higher level. The addition to HONDA Jutong also adds some positive momentum in both enhancing our technology edges and passing the industrial implementation of our smart transportation business.

With the addition of more than 500 new stock.

<unk> built a very strong team in taking our R&D effort to a higher level.

In addition to home that your tone also added some positive momentum in both enhancing our technology <unk> and <unk>.

Pricing.

Industrial implementation of our smart transportation business.

In 2022, we anticipate the R&D investment as a percentage of total revenue to remain stable as that of 2021.

2022, we anticipate the R&D investment as a percentage of total revenue to remain stable and then for 2021.

Over the past years.

We have had a great pleasure to communicate with our valued investors in various forms, including governors. We hope to introduce our latest business development.

We have had a great pleasure to come in at Kate with our valued investors in various forms including dominos.

Posted to introduce our latest of business development.

of the company and we look forward to continue this dialogue.

And we look forward to continue this dialogue.

with the investment community. Our goal is to provide more transparency and regular updates on our activity, just like expected to be a public company.

With the investment community.

Our goal is to provide more transparency and regular updates.

Our activity.

Just like you expected it to be a public company.

Thank you.

Sure.

shareholders for their ongoing support and confidence in work on, and they'll come the opportunity to speak with more of you as we move forward in the journey ahead. With that, operator, let's open up for questions. Thank you.

Shareholders for their ongoing support and the confidence interval com and they'll come the opportunity to speak could be smaller for you as we move forward either junior account.

Operator, let's open up for question. Thank you.

Thank you, Mr. Yu. Thank you, Mr. Yu. The floor is now open for questions. If you do have a question, please press star 1 on your telephone keypad at this time. If you're using a speakerphone, we ask that while posing your question, you pick up your handset to provide the best sound quality.

Thank you Mr. Yu. Thank you Mr. <unk>. The floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time, if you're using a speaker phone we asked that while posing your question you pick up your handset to provide the best sound quality.

Again, if you do have a question or comment, please press star 1 on your telephone keypad at this time.

Again, if you do have a question or comment. Please press star one on your telephone keypad at this time.

Okay.

And please hold them up front, while we poll for questions.

Yeah.

And Michelle, I'll hand the floor over to you while we're waiting for questions to queue up.

And Michelle I'll hand, the floor over to you, while we're waiting for questions to queue up.

Yeah, sure. Thank you, Tom. Appreciate it. At the beginning of the call, we received a number of different questions related to the company's operation. Specifically, I would like to ask to post the questions to management while we wait for questions to queue up. So the first question I receive is this.

Yes sure. Thank you Tim I appreciate it.

Beginning of the call we received a number of different questions related to the company's operation, specifically I would like to ask.

The question is can management, while we wait for questions to queue up.

Our first question Irene surfaces.

Will the acquisition of Tomodachi Otoa result in any revenues? Because we know that this is an analysis of strategic acquisition. What does that mean exactly? And that's my question.

The acquisition of <unk> result in any revenues.

We know that.

<unk> announced a strategic acquisition, what does that mean exactly.

That's my question.

Thank you.

Tom back to you with.

<unk> acquisition.

it not only provides key technologies to us, it brings the existing business to us as well. So in terms of technology advantages to LoKong, it brings

It's not only provides.

Key technologies to us it brings the existing business.

So in terms of technology, the vantage is too low Palm Springs, Maine.

mainly two parts. Why is the data collection capability another is the AI algorithm?

Mainly two parts one is the data collection capabilities and other is the AI algorithms.

We are confident that this acquisition will strengthen our HCMF services and give us a competitive advantage in other areas like assisted driving, vehicle road collaboration, among others.

Confident that this acquisition will strengthen our HD map services and gave us a competitive advantage in other areas like assisted driving vehicle drilled collaboration among others.

In 2022, we expect Hongda Jiu Tong to bring revenue based on existing business, and with the synergies it brings, they anticipate much more growth in other areas due to the Hongda Jiu Tong's integration.

In 2022.

Back home that you were talking to.

Bring revenue based on existing business and the <unk>.

Synergy at the brink.

Anticipate much more growth in other areas due to talking about.

Integration.

That is fully integrated with RhoCon.

Lastly is fully integrated.

<unk> com.

So this acquisition will fuel additional resource revenue growth in the near term.

This acquisition via a few additional resource.

Revenue growth in the near term.

Yeah.

We continue to explore various potential IMA opportunities, and we will bring additional value to our business and to our technology portfolio.

We continue to explore various potential.

I may opportunity.

And we will bring the.

Will bring additional value to our business and to our technology portfolio.

Thank you, Mr. Lee. My second question would be, what so-called gross prospects for the natural resource asset management and the smart transportation business, and how much of a percentage do they currently contribute to the total revenues right now, and how much of a contribution percentage do you expect for these two business lines for the year 2022?

Thank you Mr. Lee My second question would be what's low cost growth prospects for the natural resource asset management and the smart transportation business.

And how much of a percentage do they currently contribute to the total revenues right now and how much of a contribution percentage do you expect for these two business lines furniture for the year 2022.

Okay.

Thank you and look on a call for that C suffware and.

Thank you.

Low cost.

Paul productivity software and.

service. So that makes us a very special feature that when you finish the

Service.

Sure.

<unk>.

Make us very special.

Fisher is that right.

You finished the.

No.

finish the developments of the software and the platform, such as we focused on the resource asset and management and also the remote sensing products. And when this is finished and the delivery of the software product is for the customers,

<unk> finished the development of the software and platform such as we focus on the results.

Yes.

Management and also the remote sensing.

Products.

When Macy's finished and.

The delivery of the product software product and service for the customers.

The spending part is finished, then the process will go higher and higher. That is why there are lots of resources, firstly, in the environment of all the platforms.

The spending.

Paris is to finish the call.

Yes.

Hi, inherit that is why it was a lot of these sources firstly in their environment.

All of the platforms.

And there will be very little adjustments that it's a software when we finish the project. And the cost will drop significantly and the profit will go higher in health. Which I called Ireland and see where we are.

But they are still up there.

LIFO adjustments that they sell software.

Okay.

When we finish that project and costly withdraw up significantly and the perfect vehicle higher inherent and the Wednesday of time.

I think the perfect rate will go even higher, and we will balance this process with our development and then for the new features.

I think the perfect right.

<unk> even higher.

We will balance.

Perfect space, all let's say development and then for the new features and.

Okay.

Oh.

another upgrade of the old platform in software. So I think for the perfect streets, we'll go on maybe six, uh, six.

Uh huh.

Another upgrade I'll stay on our platform and software.

For the perfect fit.

That may be.

Six 6%.

60 percent to 70 percent.

Six 6%.

17%.

And that is about the many softwares in the resource assessment management.

And that is all.

The.

<unk> Menon.

<unk> okay.

Sam mentioned.

Yeah.

Okay, great. Thank you Dr. Zhao.

Sharon, that's all of the questions we get. I'll try to call back to you for a live Q&A session. Thank you, Ms. Song. As a reminder to our audience, if you do have a question or comment, you may press star one on your telephone keypad at this time. Again, that's star one if you'd like to queue up for a question.

And that's part of the questions, we get I'll turn the call back to you for live Q&A session.

Thank you Ms Shang as a reminder to our audience. If you do have a question or comment you May press star one on your telephone keypad at this time.

Again, Thats star, one if you'd like to queue up for a question.

We will hold a moment and give our audience a moment the queue up.

And there appear to be no questions at this time, so I would now like to turn the call back over to Mr. J.U. for closing remarks.

And there appear to be no questions. At this time, so I would now like to turn the call back over to Mr. <unk> for closing remarks.

Yeah.

Thank you again.

Thank you again for joining us and we believe LOKON is well positioned to carry out its growth strategy. And we tend to maintain our leading position as a special temporal intelligent big data service company.

For joining us and we believe low count is well positioned.

To carry out.

<unk> growth strategy.

And we intend to maintain our leading position spatial temporal intelligent baked data service company.

and the provider of interactive location-based service and HD maps in China.

And the provider into active location based service and HD maps in China.

We are confident.

We have gathered the best team with experts from all major business lines to strengthen our core competencies.

We have gathered the best team with expert from all major business lines to strength our core.

Competency.

and that our growing partnership base will empower the company and its customer to achieve success.

And that our growing partnership Batesville empower the company.

Customer.

To achieve success in the future.

We appreciate your time and interest in the company and in what you can reach out to us with any additional questions. Thank you again.

Appreciate your time and interest in the company.

And in what into reach reach out to us with any additional questions. Thank you again.

This does conclude today's conference. We thank you again for your participation. You may disconnect your lines at this time and have a great day.

This does conclude today's conference. We thank you again for your participation you may disconnect. Your lines at this time and have a great day.

[music].

Yeah.

[music].

Yeah.

Okay.

[music].

Yeah.

Music Music

Okay.

[music].