Q1 2022 First High School Education Group Co Ltd Earnings Call
Good day, ladies and gentlemen, thank you for standing by and welcome to the first High School Education Group first quarter 2022.
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the FIRST High School Education Group First Quarter 2022 Earnings Conference Call. Currently, all participants are.
For this call.
Currently all participants are in a listen only mode.
Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any
Later, we will conduct a question and answer session and instructions will follow at that time.
As a reminder, we are recording today's call.
If you have any objections you may disconnect at this time.
Now I will turn the conference over to Mr. Tommy Joe, Chief Financial Officer of the company. Mr. Joe, please go ahead. Thank you, Operator.
Now I will turn the conference over to Mr. Tony Joe.
<unk> financial officer of the company Mr. Yao. Please go ahead.
Thank you operator.
And greetings you investors and friends.
Again, welcome to the FIRST High School Education Group First Quarter 2022 Earnings Conference Call.
Again welcome to the first high School Education Group first quarter 2022, earning conference call.
I am Tommy Joe, the Chief Financial Officer, who will lead today's conference call.
I am commingle, the Chief Financial Officer, who will lead today's conference call.
Okay.
So we released our results yesterday prior to market open.
So we released our results yesterday prior to market open.
And the full press release is available on the company's IR website.
and the full press release is available on the company's IR website.
at https://ir.diyi.tlp, as well as Newswire Services.
At H T T P S.
Call them full.
Slash I R. <unk> D I Y I P O P.
As well as our newswire services.
A replay of this call will also be available in a few hours on our IR website.
A replay of this call will also be available in a few hours on our IR website.
Before we continue, please note that today's discussion
Before we continue please note that today's discussion.
will contain four looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995.
Well contained forward looking statements made under the safe Harbor provisions of the.
The U S Private security Litigation Reform Act of the car off 1995.
forward-looking statements involve inherent risk and uncertainties.
Forward looking statements involve.
Involve inherent risk and all certainties.
As such, the company's actual results may be materially different from the expectations expressed today.
As such the company's actual results may be materially different from the expectations expressed today.
Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.
Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.
the company does not assume any obligation to update any forward-looking statements except as required under applicable law.
The company does not assume any obligation to update any forward looking statements, except as required under <unk>.
Applicable law.
Also please note that otherwise stated.
Also, please note that, unless otherwise stated, all figures mentioned during the conference call are in Chinese.
All figures mentioned during the conference call or in Chinese.
RMB.
With that thank you all again for joining us I will briefly spend the next 30 minutes.
With that, thank you all again for joining us. I will briefly spend the next 30 minutes to update our first quarter 2022 results.
To update our first quarter 2022 result.
So May 2022 had been a busy month for the company.
So may 2022 had been a busy month for the company.
Not only have we finished our 2021 annual filing.
Not only have we finished our 2021 and you'll finally.
We also completed our 2022 first quarter results consolidation.
We also completed our 2022 first quarter result consolidation.
Historically, we did not report quarterly as International listed company United States.
Historically, we did not report quarterly as international listed companies in the United States were only obligated to do an annual report and a half-year report. But from now on, the company will report quarterly to provide for everyone a better insight into our operation.
Only obligated to do annual report and are happy to report.
But from now on the company will report quarterly to provide for everyone a better insight into our operation.
The entire team in the company worked tirelessly because we want to show all the investors and friends.
The entire team.
The company worked tirelessly because we want to show all of the investors have friends.
that despite unexpected regulatory changes.
Despite unexpected regulatory changes.
the company and its team have adapted and is now on trend to produce great results for this year and the future years.
The company and his team have adapted.
And as now I'm trying to produce great results.
For this year and future years.
For 2020 to first quarter.
The company achieved revenues of $89.3 million, a $14.2 million increase compared to last year of the same period.
The company achieved revenues of $89 3 million.
14 point to increase compared to last year same period.
More exciting is that we did achieve a net income of $19.5 million.
More exciting is that we did achieve but net income of $19 5 million.
which is 264% increase compared to the last year of the same period.
Which is 264% increase compared to last year same period.
And allow me to explain the positives, the positive trend that we're setting forward into three different key items.
And.
All me to explain the positive the positive trend.
Heading forward into three different key items.
So item number one.
we achieved marginally increased net income results.
We achieved marginally increased net income results.
mainly due to our ability to adapt in a changing environment.
Mainly due to our ability to adapt in a changing environment.
prior to a series of regulatory changes introduced in 2021.
Prior to a series of regulatory changes introduced in 2021.
I believe all education companies large and small had mainly one strategy, which is to expand and to expand that.
I believe all education companies, large and small, had mainly one strategy, which is to expand and to expand fast.
So initially for, you know, the first half of 2021.
So initially for the first half of 2021.
That was mainly the case for us also. We, too, wanted to expand and wanted to have more schools open.
That was mainly the case for US also we too wanted to expand and wanted to have more school open.
before each year's September season, before school starts.
Before each year's September season before school starts.
But I think for us, a bit quicker the most when the regulatory changes did publish.
But I think for us a bit quicker than most when the regulatory change it did publish.
throughout the year actually, several times, but mainly around July-August of last year.
Throughout the year actually several times, but mainly around July August of last year.
We did not hesitate in any disbelief. We simply adopted to the changing regulatory environment. Especially since last year's third quarter, we are.
We did not hesitate in any disbelief.
We simply adapted to the changing regulatory environment.
Especially since last year's third quarter, we are assertively shifted our strategy.
from a purity outward focused to more inward focused.
From a purity outward focused to more inward focused.
We wanted to make sure that before we go out to expand into new territory, we have a solid foundation first that all of our existing schools will be operating in near perfect conditions before we expand into new areas.
We wanted to make sure that before we go out to expand into new territory.
We have a solid foundation first that all of our existing schools will be operating near perfect conditions before we expand into newer areas.
So I think that our ability to adapt is a key to the thriving, changing environment.
So I think that our ability to adapt is a key to the thriving changing environment.
And visibly from this quarter's result, we were able to stead that trend.
And visibility from this quarters result.
We were able to set that fat.
Moving forward, again, I think the regulatory environment is constantly changing.
Moving forward again, I think regulatory environment is constantly changing.
No one knows what will be released, but the ability to adapt is extremely important.
No one knows what will be released but.
The ability to adapt is extremely important.
Going forward.
Item number two, I think our revenue increased notably 14%.
And then item number two I think our revenue increased notably 14%.
compared to last year of the same quarter, which is always a healthy indicator of a growing business.
Compared to last year with the same quarter, which is always a healthy indicator of our growing business.
But it was actually our improvement in operating efficiencies, especially
But it was actually.
Our improvement in operating efficiencies.
And especially cost saving measures.
that contributed mostly to the significant increase, 264% in net income. We want to make sure that every dollar we
That contributed.
Mostly to the.
Significant increase right 264%.
Net income.
We want to make sure that every dollar we have its well spent.
So since last year, third quarter, we did a rigorous redesign of the budget system and our compensation.
Since last year's third quarter, we did a rigorous redesign of the budget system.
And our compensation system as well.
all for the reason to better allocate resources and to better align spending and results.
All for the reader to better allocate resources to better align spending on result.
For our budget system, so we've updated
Oh for a budget system. So we've updated.
You know, we still use the same system, but we implemented each module much better. Now we can forecast the cash flow a month to two months prior to the actual expenditure. You know, this is done by both analyzing historical data and also by reporting from the department or school who wish to use the cash, right, by actually able to forecast the cash flow ahead of time.
Entirely.
We still use the same system, but we implemented each module much better now we can't forecast the cash flow.
<unk> two two months prior to the actual expenditure.
By both analyzing historical data and also by reporting from the Department or school, who wish to use the cash.
By actually able to forecast the Cashcall ahead of time.
This allows us not only to have a better cash management, but also to foresee if those costs are actually...
This allows us not only to have a better cash management.
But also to foresee if those cost.
Are actually necessary.
Nowadays, almost any spending are at least one month in the head, so we have plenty of time to make sure it is absolutely, you know, nothing goes to waste.
Nowadays almost any spending or at least one month, you're not head so.
So we have plenty of time to make sure it is absolutely.
Nothing goes to waste.
But moreover, we also increased horizontal comparison between each school.
The moral where we also increased horizontal comparison between each school.
And that metrics to determine anomalies.
and set metrics to determine anomalies.
For example, right, we now have a target team to identify that school which might be running below average efficiency and tailor solutions subsistently.
For example that we now have a target team to identify that school, which might be running below average efficiency and tailor solutions specifically for them.
if we have normally a school which is a teacher ratio between 1 to 15 and we have schools that are say 1 to 10 or 1 to 9 teachers ratio, right, we have solutions for that to tailor to the school either to a reduced, you know, headcount or increase some kind of student, you know, recruitment. Again, metrics.
If we have normally a school, which the teacher ratio between one to 15 and we have schools that are they want to turn or want to nine teachers ratio right. We have solutions for that too.
To tailor to the school either tool reduced head count or increased some kind of student yeah.
Recruitment.
Again metrics.
It's a wide range between.
Utility cost to teachers compensation to staffing caused two ratios.
utility costs, to teachers' compensation, to staffing costs, to ratios. So,
So we want to.
do more hard on the comparison to make sure all schools are running at equal or greater efficiency. And similarly, to staff compensation, we now included a much larger portion of performance based pay.
Two more horizontal comparisons to make sure all schools are running at equal or greater efficiencies. That's in there literally.
Two staff compensation, we now included a much larger portion of performance based pay.
to precisely align, you know, data back results with the compensation we pay out.
Precisely aligned data back we dealt with the compensation we pay out.
Teachers are paid accordingly to the hours that they give out lectures, the questions that they laid out for the students, rather than a more uniform pay.
Our teachers are paid accordingly to the hours that they gave out like church you know too.
The questions that they laid out for the students rather than.
A more uniform PE.
So the bulk of the improvements inefficiencies.
were visible in both our annual and quarter reports.
Were visible in both our annual and quarterly reports.
If we just take a look at some examples, right, if we look at our 2021 half-year results,
If we you know just to take a look at some examples right.
If we look at our 2021 half year results.
the cost of revenue was $170 million, right? And then the entire year, it was $251 million, which means.
The cost of revenue was 170 million.
Right and then the entire year.
So it was 251 million.
Which means we spend 70%.
If our cost of revenues.
during the first half of the year, only 30% during the second half, right? Usually, if you do your accrual accounting right, it should be a 50-50 split. But for us, we actually spent 70% of it during the first half of the year of 2021, only 30% of it in the latter half, just to show how rigorous we did to save money.
During the first half of the year only 30% during the second half right usually if you do your accrual accounting right. It should be a 50 50 split.
But for US we actually spent 70% of it during the first half of the year of 2021 only 30% of it in the latter half just to show how rigorous we did to save money.
And the results were even more apparent in our general and administrative experience.
And the result was even more apparent in our general and administrative expenses.
right for half a year it was 60 million for the entire year was 74 million.
Right for half a year it was 60 million.
For the entire year was 74 million.
So, in the second half, we spent about one-fifth of what we did spend in the first half of the year.
Right. So in the second half we spent.
About one fifth of what he did spend in the first half of the year.
Again, all these trends is showing that, you know, we try to save a lot of money during last year's second half. And that continued into this quarter as well.
Again all of these trend.
It's showing that we try to save a lot of money.
During last year's second half and that continued into this quarter as well.
So for the first quarter of 2022, despite we increased the revenue by 14%, our number of students increased, you know, only roughly 3%, but still, number of schools increased, right?
For the first quarter of 2022.
Despite we increased revenue by 14% our number of student increased you know only roughly 3%, but still number of schools increased right.
We have much more self-operated school in 2022, but our cost of revenue actually stayed the same. So we have all these factors that increased, but our cost did not increase.
We have much more self operated school in 2022.
But our cost cost of revenue actually stayed the same but.
But we have all of these factors that increase but our costs did not increase.
Therefore, that was able to increase our profitability quite significantly.
Therefore, you know that was able to increase our profitability quite significantly.
Again, I just want to stress for the point that for the second half of 2021 and continuing into 2021.
Again, I just want to stress the point that for the second half of 2021 and continuing into 2022.
we were able to drastically improve on our cost efficiency.
We were able to drastically improved on our cost efficiencies.
We also believe that these improvements will continue to happen throughout 2022. It's not a one-time. And all the budget redesign, the compensation redesign I spoke about.
We also believe that these improvements will continue to happen throughout 2022, it's not a one time.
All the budget redesign compensation redesign I spoke about.
It will be even better as we have more tools to implement.
It will it will be even better as we have more tools to implement these.
Another note for the fiscal year 2021 annual report, it is important to update that our audited financial results were actually improved compared to our previously announced unaudited results.
Another note for the fiscal year 2021 annual report it is important to update that our audited financial results were actually improved compared to our previously announced audited results.
Our audited net income was 52.7 million RMB, which is about 32% higher than the previously announced unaudited net income of 39.9 million.
Our audited net income was $52 7 million RMB, which is about 32% higher than the.
Previously announced all audited net income of $39 9 million.
This was caused mainly because our auditor.
This was caused.
Mainly because of our auditor.
was able to correct some cost of revenue related offsets in the working papers for the improved results. You know, the company and the accounting teams were actually more conservative in some of the offsets.
We're able to.
Correct some cost of revenue related offsets into working papers for the improved result, you know the company and the account teams.
To be more conservative in some of the offsets.
Lastly, I think items three you cannot.
Lastly, I think item three, you cannot.
win a battle by just saving money, right? You have to go on the attack, you have to increase revenue.
Win the battle by just saving money you have to go on the attack you have to increase revenue.
So in addition to the ability to adapt faster than most companies in a changing environment.
So in addition to the ability to.
To adapt faster than most companies in a changing environment.
as well as perfected operating know-how, I think, we did and we will introduce new business and further drive growth.
As well as perfected all pretty know how I think we did and we will introduce a new business and further drive growth. So.
The third point I want to say is that this year, this upcoming September in 2022, we will have two complete new school openings.
The third point I want to say is that this year.
This upcoming September in 2022 we will have to complete new school opening.
And on top of that, we will have increased number of liberal education classes such as fine art, media studies, dance, and music majors, as well as vocational classes.
And on top of that we will have increased number of liberal education classes, such as fine Art Media studies, a dance and music majors.
As well as vocational classes.
Apparently, we have a pretty accurate estimate that 850 students are expected to enroll into these newly established programs and majors this upcoming September .
Apparently we have a pretty accurate estimate that 850 students are expected to you roll into these newly established programs the majors there.
Upcoming September .
It will provide us with a new factor of growth.
It will provide us with the new factor of growth.
Some of the.
tuition and related recruitments are already, I can't say signed, but it's already pretty much confirmed. So, we're very happy about that.
And then.
Related.
Our recruitment are already I can't say sign but it's already.
Pretty much confirmed so we're very happy about that.
Also a bit detail on the two new schools.
I'm also a bit <unk>.
<unk> on the two new schools.
I do not want to say specific names and location yet, since some authorizations are still in process.
I do not want to stay as specific names the location yet since some authorizations are still in process.
But I can say that one campus is completely finished, you know, from the building to the renovation to all the equipment. They're completely new and actually a small number of students. It's already in the school since last year, September before it was managed by us.
But I can say that one campus is completely finished and all from the building.
So the renovation to all the equipments are completely new.
And actually at a small number of students it's already in the school since last year's September before it was managed by us.
So the school is completely ready to go, and it's located in one of China's four municipality cities. So one of the four biggest cities in China. So we're very excited for new growth into that market and the student body that we can serve there.
So the school is.
Are you ready to go and is located in one of China's four municipalities cities, but one of the four biggest cities in China. So we're very excited for new growth.
That market and the student body that we can serve there.
Yeah.
The second new school is much closer to our headquarter. It's still under construction.
The second New school, it's much close to our headquarter, it's still under construction.
We expect all preparation to be done before June 30th, and we are working very closely with local partners and authorities to have a successful recruiting year.
We expect all preparation to be done before June 30th.
And we are working very closely with local partners and authorities.
To have a successful recruiting year.
In addition to the staff Ah self operated school, we also signed.
In addition to the self-operated school, we also signed with a central China-based
With a.
A central China based.
Private school ebay.
To provide our management service.
School management service is very similar to hotel management service.
You know school management service is very similar to a hotel management service.
where the owners owns the property and hires the majority of the staff. And then we, as the management service provider, we send top management employees to set the standard for operation, set a standard for education. The current owner and I spoke a lot and he deeply trusts us and believes in our ability to operate schools.
Whereas the owners of the property and hired the majority of the staff and then we as the management service provider, we send pop management employees to set the standard for operations set a standard for education.
Current owner.
And I spoke a lot and he deeply trust us I'm pleased in our ability to operate schools.
and we mutually are dedicated to provide our best know-how to make sure the school is running in the best shape possible. And the good news is majority of the management fees have already been paid to us.
And we mutually are dedicated to provide our best know how to make sure. The school was running in the.
The best shape possible so.
And the good news is the majority of the management fees have already been paid to us.
So this is a very asset light business. We send about 80 employees, generating several millions RMB of income.
So this is a very asset light business, we spend about eight.
Eight employees.
Generating several millions RMB income.
And we are very happy for this opportunity as it also furthers expand our strong brand name and reputation.
We are very happy for this opportunity as it also further expand our strong brand name and reputation.
as a combination of what happened already and what will happen as recruiting season is about to begin.
As a combination of what happened already.
Will happen as recruiting season is about to begin.
I think the company is extremely excited on a positive trend forward.
Well I think the company is extremely excited on a positive trend forward.
Again, I just want to stress that we are delighted for the convincing growth of our net income compared to last year's same quarter.
Again, I just want to stress that we are delighted for the comments and growth of our net income compared to last year's same quarter.
And next, maybe 10 to 15 minutes, I will go through our line-by-line financial highlights for the first quarter of 2022.
And our next maybe 10 to 15 minute hour go through a line by line financial highlights for its first quarter 2022.
Again, please know that all numbers are presented in RMB as otherwise stated. All percentages and changes are on a year-over-year basis as otherwise specified.
Again. Please note that all numbers are presented in RMB and us.
Otherwise stated all percentages changes are on a year over year basis, unless otherwise specified.
Detailed analysis is contained in our early release, which is, like I said, available on the IR website.
A detailed analysis is containing our earnings release, which is like I said, it's available on the IR website.
So total revenues was 89.3 million RMB, an increase of 14.2% from 78.2 million in the first quarter of 2021. The increase was primarily driven by greater student enrollment due to the increased number of students enrolled in our schools.
So total revenues was $89 3 million RMB, an increase of 14.2% from $78 2 million in the first quarter of 2021. The increase was primarily driven by greater student enrollment due to the increased number of students enrolled in our schools.
Revenues from customers were $76.9 million, an increase of 13.3 percent from $67.8 million in the first quarter of 2021. The increase was primarily driven by greater student enrollment.
Revenues from customers or $76 9 million increase of 33% from $67 8 million in the first quarter of 'twenty 'twenty. One the increase was primarily driven by greater student enrollments.
Remedy from government cooperative agreements was $12.5 million, an increase of 20.1%.
Revenue from government Cooperative agreement was $12 5 million an increase of 21%.
from 10.4 million in the first quarter last year, primarily due to increased number of publicly sponsored students we serve.
Oh from $10 4 million in the first quarter last year, primarily due to increased number of public and sponsored students we serve.
Cost of revenues was RMB $57.3 million, a decrease of 3.3% from $59.3 million in the first quarter of 2021.
Cost of revenues was RMB $57 3 million a decrease of three 3%.
From $59 3 million in the first quarter of 2021.
The decrease was primarily due to the improved control of campus-related costs and more efficient compensation structure for teachers and staff.
The decrease was primarily due to the improved control off campus related cost and more efficient compensation structure for teachers and staff.
Gross profit was $32.1 million, an increase of 69% from $19 million.
Gross profit was $32 1 million an increase of 69%.
From $19 million in the first quarter of 2021.
Gross margin was 35.9 compared to its 24.2 in the first quarter of 2021. The increased gross margin was primarily due to the improved cost measures are resulted from improved school operating efficiencies such as reduced repair, tighter utility usage, stricter budget control, and also a revised compensation structure for teachers and supporting staff.
Gross margin was 34 35.9.
Compared with 24.2 are in the first quarter of 2021. The increased gross margin was primarily due to the improved cost measures.
Resulted from improved operating efficiencies such as reduced repair tighter utility usage stricter budget control and also a revised compensation structure for teachers and supporting staff.
for an overall more efficient system tying pay-to-performances.
For an overall more efficient system tying pay to performances.
net operating expense, or $9.7 million, an increase of 21.5%.
Our net operating expense were $9 7 million an increase of 21, 5%.
form RMB 8 million in the first quarter of 2021.
Form RMB 8 million in the first quarter of 2021.
To break them down, selling at marketing expense was about 1 million, 0.1 million, sorry, a decrease of 60% from 0.3 million in the first quarter of 2021.
To break them down selling and marketing expense was about 1.1 million sorry, a decrease of 60% from <unk> 3 million in the first quarter of 2021.
Mainly because most of the marketing has not happened yet for the first quarter. Usually it happens between the second quarter to the third quarter.
Mainly because most of the marketing has not happened yet for the first quarter, usually happens between the second quarter to the third quarter.
Our general and administrative expense.
or $9.9 million, an increase of 12.9% from
Or $9 9 million, an increase of 12, 9% from.
$8.7 million in the first quarter of 2021. The increase was primarily due to the increased professional service cost related to complying with our reporting obligations under security law after we become a public company since March last year.
$8 7 million in the first quarter of 2021.
The increase was primarily due to increased professional service cost related to our comp.
Complying with all our reporting obligations under our security at all after we became a public company since March last year.
Government grants was $0.3 million, a decrease of 72% from $1.1 million.
Government grants was point 3 million a decrease of 72% from $1 1 million.
majority because the government grants were paid to the discontinued operation of Middlesbrough.
Majority because of the government grants were paid to the discontinued operation of Middle schools.
I just want to add that, you know, net operating expense were relatively small, right? The net total is only $9.7 million versus the cost of revenue.
I just wanted to add that you know net operating expense were relatively small right.
The net total was only $9 7 million versus the cost of revenue right its nearly $60 million.
So, despite the small increase, our majority decrease in cost of revenue contributed.
Al.
Despite a small increase or a majority of decrease in cost of revenue.
Contributed to the.
Higher profit margin.
income from operation was $22.4 million, an increase of 103.4% from $11 million in the first quarter of 2021. Net income from a
Our income from operation was $22 4 million, an increase of $103 four per cent for them.
Another million in the first quarter of 2021.
Net income from continuing operation was $21 1 million an increase of 124, 25% from nine point formula in the first quarter of 2021.
was $21.1 million, an increase of 125% from $9.4 million in the first quarter of 2021. Net loss from this...
Net loss from discontinued operation.
1.5 million compared with a net loss of 4 million.
One 5 million.
Compared with a net loss of 4 million.
In the first quarter of 2021.
And our net income was $19 6 million an increase of 264% from the five for $5 4 million in the first quarter.
And our net income is $19.6 million, an increase of 264% from $5.4 million in the first quarter.
As most investors and friends know that last year, half a year, we only did about $11 million adjusted.
As most our investor friends know that last year half a year, we only did about.
$11 million adjusted.
Adjusted net income.
<unk>.
I think.
having the trend that we set forward today is definitely very.
Having the trend that we set forward today.
It's definitely a very.
Positive trend.
And again, adjusted net income is the same thing as net income. It was $19.6 million, an increase of 264% from the $5.4 million in the first quarter of 2021.
And again adjusted net income is the same thing as net income was $19 6 million an increase of 264%.
From the $5 4 million in the first quarter of 2021 there was no adjustment.
For business outlook.
For the fiscal year 2022, it's the same as we did for our annual report. The company expects total revenue of operating operation, a continuing operation, to be between $480 million to $520 million, representing an increase of 15 to 24% on a year-over-year basis. This outlook reflects the company's current and preliminary view on the market and operational conditions.
For the fiscal year 2022 is the same as we did for our annual report the.
The company expects total revenue of far pretty operation Okay.
Continuing operation to be between.
480 million to 520 million, representing an increase of 15% to 24% on a year over year basis.
This outlook reflects the company's current and preliminary review of the market and operational condition.
And the outlook ranges for the fiscal 2022 reflect a number of assumptions that are subject to change based on uncertainty.
And the all of the ranges for the fiscal 2022 reflect a number of assumptions that are subject to change based on my own certainties.
Above is my financial highlight briefing, both Mr. Zhang and myself.
Above is my financial highlight briefing, both Mr John and myself.
We should thank you everyone.
for your time in participating. We do plan to host another small group Chinese conference call sometimes in the next two days. So.
Your time in participating we do plan to host another small group Chinese conference call.
Sometimes in the next two days.
So feel free to reach me and are we kind of worried about it.
In the Chinese call, our CEO , Mr. Zhang, will communicate directly in Chinese to help everyone explain anything that they wish to inquire.
In the Chinese call are CEO , Mr. John won't communicate directly in Chinese to help everyone.
Explain anything.
That they wished to inquire.
We understood English is not the first language for most of our investors and we wish to host them the Chinese call as well. So with that being said, I've opened the call for questions. Operator, please go ahead.
We understood English is not the first language for most of our investors and we wish to postpone the Chinese call as well so.
That being said, let's open the call for questions.
Operator, Please go ahead.
We will now begin the question and answer session.
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At this time, we will pause momentarily to assemble our rafts.
At this time, we'll pause momentarily to assemble our roster.
As a reminder, if you have a question, please press star, then 1 to be joined into the queue. That's star, then 1 to be joined into the question queue.
As a reminder, if you have a question. Please press star then one to be joined into the queue.
Star then one can be joined into the question queue.
Seeing as there are no questions, this concludes our question and answer session. I would like to turn the conference back over to Mr. Tommy Zhou for any closing remarks.
He is there are no questions. This concludes our question and answer session.
I would like to turn the conference back over to Mr. Thomas for any closing remarks.
Okay.
Yeah. Thank you, operator. You know, again, we thank everyone for participating today and everyone's for the support.
Yeah. Thank you operator.
Again, we thank everyone for participating today.
And everyone's effort to support.
We appreciate everyone's interest in our company and greatly look forward to reporting to everyone again next quarter on our progress. Thank you, operator.
We appreciate everyone's interest in our company I greatly look forward to reporting to everyone again.
Next quarter on our progress thank you operator.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
The conference has now concluded. Thank you for attending today's presentation you may now.
[music].
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