Q2 2022 17 Education & Technology Group Inc Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star 111.
[music].
Okay.
Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17, FX first quarter 2020 earnings Conference call.
At this time, all participants are in listen only mode.
After managements prepared remarks, there will be a question and answer session.
A reminder, today's conference call is being recorded I will now turn the meeting over to your host for today's call. Mr. Shao.
Thank you Esther Relations manager. Please proceed Laura.
Thank you operator, Hello, everyone and thank you for joining US today, our earnings release was distributed earlier today and is available on our IR website. Joining us today are Mr. <unk>, Liu founder Chairman and Chief Executive Officer, and Mr. Michael do director and chip.
Financial Officer, Andy will walk you through our latest the business performance and strategies, followed by Michael who will discuss our financial performance and guidance. They will be available to answer your questions. During the Q&A session. After the prepared remarks before we begin I'd like to remind you that this.
Conference call contains forward looking statements as defined in section 21 E of the Securities Exchange Act of 19th century for and the U S. Private Securities Litigation Reform Act of 1995.
These forward looking statements are based upon management's current expectations and current market and operating conditions and relates to events.
That involve known and unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control. This risk may cause the company's actual results performance or shifting us to differ materially.
Further information regarding these and other risks uncertainties or factors is included in the company's filings with the U S. S E C.
Company does not undertake any obligation to update any forward looking statements as a result of new information further events or otherwise except as required under applicable law I will now turn the call over to our chairman and Chief Executive Officer to review some of our business development and strategy.
The direction Andy Please go ahead.
Thank you Laura.
Hello, everyone.
Thank you all for joining us on our second quarter 2022 earnings call before we begin I would like to mention that the financial information and non-GAAP numbers in this release are presented.
On a continuing operations basis, and all numbers are based on the RMB unless otherwise stated.
We are glad to report a solid performance in the second quarter before we go into the details let me update you with some quick highlights.
Firstly, we recorded RMB $133 5 million of revenues.
Revenues in the second quarter of 2022.
11, 2% higher than the top end of our estimates provided earlier in June .
Was achieved through higher revenue contribution.
Well, our teaching and learning.
Secondly, our operational efficiency continues to improve.
We recorded.
Potentially narrowed GAAP basis net loss compared with the same period in 2021, allowing us to achieve net profitability on a non-GAAP basis for the last three.
Consecutive quarters.
Firstly, our new tissue alerting stock offerings, how gained further momentum when strong recognition and demand from the government and regimens operators contributing an increasing proportion.
<unk> of the company's net revenues in this quarter.
Now let me go into some more details, let's start with our inks Gucci and learning business.
During the periods, our teaching learning offerings, how witness major milestone, we successfully delivered district wide precision teaching and adaptive learning system project based on intelligence for Mercury Shanghai District in the second quarter of 2022.
Tim has been regularly used throughout the teaching process and it's well recognized by teachers students and education operations. This is a clear example, satisfying the standard for active use steps by education alternatives.
A total of 156 schools in May on this.
Using our precision teaching adaptive learning system during the waves of Covid.
Opex in the second quarter of 2022, all precision teaching and adaptive learning system, how played a significant role in helping the authorities form of high quality online teaching environment.
Qualified content delivery collect study information and provide.
Active communication between schools and authorities.
In the four months after the implementation around.
Yeah.
Around 120000 students you use our system and completed a total of 11 million Culpas Palmer assignments cumulatively the value of our system is well recognized by its various users. It is a clear illustration of 17.
Tax pioneering capability in the digital transformation of China's education industry.
We continue to see greater market potential and opportunities as we can.
Make further progress in our teaching and learning business Chinese comments continuous endeavor in the digital transformation of China's education system to implement enhanced level of personalization during the teaching and learning process has been the backdrop, providing a focused amongst four hour one smart teaching and learning.
Offerings.
It is also to be noted that throughout the entire Duke <unk>.
<unk> progress Homeward is.
Is the most ideal scenario for steady data collection, the ability to collect homework data effectively and efficiently is a key to materialized detailed treatment.
Differentially aided and individual life future. Although there was the support of our big data and intelligent technology, let requirement of improving homeless efficiency can be truly achieved.
The precision <unk> adaptive learning system project based on intelligence murky.
Flagship taste, we have successfully delivered not only district of National Smart Education demonstration district.
And by Mou, which has substantial illustrates why do you and influence over cities and districts across China of solution has become a clear flagship example of how such a system enables individualized Homer and precise teaching well meeting normalized application required by the relevant.
Operators while.
Reducing the burdens of students and schools and improving learning and teaching efficiencies required by debit reduction policies.
As we expanded our sales channels into a broader range. We have signed partnership agreements with over 50 local distribution agents to enlarge our distribution network.
We are confident that the increasing market needs will lead us to a deeper market penetration.
In the Meanwhile, the company is also actively exploring where risk form of recovering starts billing model for our teaching and learning offerings with our current and potential customers.
This includes one stop overall solution combining software hardware and service, although currently not approval prevalent building models.
The recurring starts building model is expected to gain.
Popularity among local authorities and schools.
Versus the traditional one.
Procurement model because of the upfront cost of reduction and the promotion of normalized application based procurement by the Ministry of education higher proportion of revenue from recurring SaaS billing model also mean, a healthy financial profile, given the steady and predictable ongoing.
Revenue strength.
We have already seen a recent product expected to be operated under this model and obtaining positive feedback from the local education Bureau on such maturity starts selling model.
In terms of off campus business, we will continue to explore and improve our self directed learning product based on students and parents feedback to fulfill the divers and Martin mentioned learning amongst of students and provided was targeted customized learning content in line with the government's regulation.
Okay.
Q2 marks.
<unk> key milestones on the new business model. After the double deduction policy, we are glad to see this positive momentum being turned into projects with reputation earned and revenue recognized.
As we deploy our tux business opportunities and expand our sales network nationwide. We grew even more determined in our new strategies and saw increasing amounts of business opportunities arising.
Looking ahead, we expect our teaching and learning tax business to continue a significant proportion to the overall revenues in the coming quarters.
We are confident that.
Synergy synergistic linkage between <unk> and off campus business will enable us to build a high quality education platform, driven by science and technology with ingenuity, helping the digital transformation and upgrading of China's education industry, reducing the burdens of students and skus improving.
Education efficiency, and making contributions to the promotion of China's education reform.
Now ill turn the call over to Michael obviously, Apple to walk you through our latest financial performance. Thank you.
Yeah.
Yeah.
Thanks, Andy and thank you everyone for joining the call.
Now I'll walk you through our financial and operating results.
Note that all financial data I'll talk about will be presented in RMB terms.
I would like to remind you that the closer with our present here should be taken with care and referenced potential future performance are subject to a potential impact from seasonality and one off events.
As a result of the series of regulation introducing trial in 'twenty, one and a corresponding adjustment to our business model organization and workforce.
The second quarter of 2022 as of third quarter operation. After we officially cease our online K 12 after school tutoring services and have generated revenue purely from our continuing businesses.
Our new business strategy has shown positive momentum in the second quarter with <unk> teaching and learning businesses seeing additional delivery during the second quarter August Johnson do too.
As a result of our improved operational efficiency, we are delighted to record net profitability on an adjusted basis for the last three consecutive quarters.
Next I will go through our second quarter financials in greater detail.
Our net revenue were RMB $133 5 million, representing a year over year decrease of 81% from RMB $617 9 million the second quarter of contract you won the.
The decrease was mainly due to the cessation of our online K 12 tutoring services by the end of 'twenty, one to be in compliance with the latest PRT regulation.
However, when compared with the net revenue excluding those from online K 12 tutoring services. Our net revenue increased significantly from $8 9 million RMB to RMB $133 5 million during the same period, representing a growth of over <unk>.
14 times.
The company is teaching our running SaaS offerings are contributing an increasing proportion of the company's net revenues for the second quarter of 2022, when compared with the previous quarters.
Cost of revenue for the second quarter content. It too was RMB six.
The $63 8 million, representing a year over year decrease of 74, 3% from RMB $248 million in the second quarter of 'twenty, one which was largely in line with the decrease in net revenue due to the sufficient of our online K 12 tutoring services.
Under the new regulatory and business environment.
Gross profit was $69 7 million, representing a year over year decrease of <unk>, 5% from $422 9 million in the second quarter was <unk> 21.
Gross margin for the second quarter content. It too was 52, 2% compared with 63% in the second quarter <unk> 'twenty one.
On the expense side.
Total operating expenses for the second quarter of 2022 were $103 8 million, representing a year over year decrease of 85, 2% from $702 six Miller in the second quarter of 2021.
Total operating expenses for the second quarter of 2022 included $30 1 million of share based compensation expenses.
Sales and marketing expenses for the second quarter of 2022.
$11 7 million, which included $3 4 million of share based compensation expenses representing.
Year over year decrease of 96, 2% from $306 7 million in the second quarter also on 'twenty one.
This was mainly due to the decrease in promotional cost expenses and advertising expenditures as a result of the changing deregulatory environment as well as staff optimization since the regulatory change.
Uh huh.
R&D expenses for the second quarter commentary, you to RMB $35 7 million.
Which includes $7 2 million of share based compensation expenses.
Presented.
Year over year decrease of 84, 4% from 229, 5% in.
In the second quarter of 2021.
The decrease was primarily attributed to stock optimization and expenses saved.
In line with the business adjustment.
G&A expenses for the second quarter, 2022 was $56 4 million, including $19 5 million amongst share based compensation expenses.
Presenting a year over year decrease of 48, 5% from $109 five knowing the second quarter of 2021.
This decrease was primarily attributable to store optimization and expense saving measures in line with our business adjustment.
Loss from operations was $34 1 million compared with $279 8 million in the second quarter of 2021.
From operation as a percentage of revenue for our second quarter of 2022 was negative 25, 5%, which was significantly narrowed from negative 41, 7% in the second quarter 'twenty one.
Net loss for the second quarter of 2022 was RMB 26.
$4 million compared with a net loss of $266 7 million in the second quarter I'll touch on tier one.
Net loss as a percentage of net revenues was negative 19, 8% in the second quarter of 'twenty two.
<unk> was negative 39, 8% in the second quarter of 2021.
Our adjusted net income on a GAAP basis for the second quarter was down 22 was positive RMB three 6 million compared with an adjusted net loss of RMB $218 2 million in the second quarter of 'twenty one.
Adjusted net income as a percentage of net revenue was positive two 7% in the second quarter of 2020 to substantially.
Substantially improved.
The negative 32.5.
5% in the second quarter of 2021.
With that I will now provide our business outlook.
Based on our current estimates.
Telephone that revenues for the third quarter of 2022 are expected to be between RMB 120 million and RMB $114 million.
Estimate that revenues for the third quarter of 2022 is derived entirely from ongoing business on the company's business transformation and does not include revenues from legacy online K 12 tutoring services.
This estimated range represents a significant increase year over year as compared with a relatively small base.
Net revenues generated from online.
Online K 12 tutoring services for the third quarter of conferencing one.
I would also like to note that our teaching and learning SaaS products.
Involve education bureaus and schools and it typically needs to go through a long cycle of bidding process.
It is does never totally subject to potential delay in project bidding process, our project delivery in process due to factors such as Colgate outbreaks and others.
This means our revenue recognition progress might fluctuate from quarter to quarter due to factors that we have limited control over especially.
Early quarters of our revenue ramp up period.
The above forecast Refract 17, <unk> current and preliminary view and is therefore subject to change.
Please refer to the Safe Harbor statement contained in our earning release for factors that could cause actual results could differ materially from those containing any forward looking statements.
Is that.
That concludes our prepared remarks. Thank you operator, we are ready to begin the Q&A session. Thank you.
Instrument and as a reminder to ask a question you will need to press star one one on your telephone please stand by while we compile the Q&A roster. Once again to ask question. Please press star one one.
Okay.
Once again, if you'd like to ask a question. Please press star one one.
Okay.
Yeah.
Once again to ask question. Please press star one one.
We have a question from <unk> from <unk> capital. Please proceed.
Okay.
Yeah.
Mr. <unk>. Your line is now open. Please proceed with your question.
Okay.
Yes. My question is that the mantra has announced a share buyback plan last year.
So we want to know what's the process.
Up the share buyback plan so far.
Let me take discretion.
Thanks for the question.
Yes.
We announced a share buyback program.
Last November we actually in the progress of continually buying back the shares.
At a speed that we considered a property so far.
Our plan is to continue such buyback share buyback programs.
In later peer.
Periodic reports, we will provide detailed numbers about the number of shares an amount we have used.
Thank you very much and also congratulations congratulations.
You bet Ya man that Youll get that would be true.
Fantastic.
Okay.
Thank you. Thank you for the questions.
To ask question. Please press star one one.
No further questions from the phone line May I hand, the call back to the management. Please continue.
Thank you operator in closing on behalf of 17, <unk> management team, we'd like to thank you for your participation on today's call. If you require any further information please feel free to reach out to us directly. Thank you for joining us today.
Concludes the law the call.
Yes.
Thank you for participating you may now disconnect.
Okay.
Sure.
Raise your hand during Q&A, you can dial star one one.
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Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17 at Teck's first quarter 2020 earnings Conference call.
At this time all participants are in listen only mode. After the management's prepared remarks, there will be a question and answer session.
As a reminder, today's conference call is being recorded I will now turn the meeting over to your host for today's call. Mr. Shao.
Thank you Mr Relations miniature please proceed Laura.
Thank you operator, Hello, everyone and thank you for joining US today, our earnings release was distributed earlier today and is available on our IR website. Joining us today are Mr. Andy Liu founder, Chairman and Chief Executive Officer, and Mr. Michael <unk> Director and CFO .
Financial Officer, Andy will walk you through our latest the business performance and strategies, followed by Michael who will discuss our financial performance and guidance there will be available to answer your questions. During the Q&A session. After the prepared remarks.
Before we begin I'd like to remind you that this conference call contains forward looking statements as defined in section 21 of the Securities Exchange Act of 19.
And the U S Private Securities Litigation Reform Act of 995.
Forward looking statements are based upon management's current expectations and current market and operating conditions and related to events.
That involve known and unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control. This risk may cause the company's actual results performance or achievements to differ materially.
Further information regarding these and other risks uncertainties or factors is included in the company's filings with the U S at the.
The company does not undertake any obligation to update any forward looking statements as a result of new information further events or otherwise except as required under applicable law.
I'll now turn the call over to our Chairman and Chief Executive Officer to review some of our business development and strategic direction. Andy. Please go ahead.
Okay.
Yeah.
Thank you Laura.
Hello, everyone.
Thank you all for joining us on our second quarter 2022, earning call.
<unk>, we begin I would like to mention that the financial information and non-GAAP numbers in this release are presented.
Continuing operation basis.
All numbers are based on the RMB unless otherwise stated.
We are glad to report a solid performance in the second quarter.
Before we go into the details let me update you with some quick highlights.
Firstly, we recorded RMB $133 5 million of net revenues in the second quarter of 2022.
11, 2% higher than the top end of our estimates provided earlier in June this was achieved through higher revenue contribution.
Well, our teaching and learning.
Secondly, our operational efficiency continues to improve.
And we recorded.
Substantially narrowed GAAP basis net loss compared with the same period in 2021.
Following us to achieve net profitability on a non-GAAP basis for the loss of three <unk>.
Consecutive quarters.
Thirdly, our new teaching and learning offerings have gained further momentum when strong recognition and demand from the government and relevant operators contributing and increasing proper.
A proportion of the company's net revenues in this quarter.
Now let me go into some more details.
With our inks Gucci and learning business.
During the periods, our teaching and learning offerings, how witness major milestone we successfully delivered.
Wide precision teaching and adaptive learning system project based on intelligence homework in Shanghai.
In the second quarter of 2022, and the system has to be regularly used throughout the teaching process and it's well recognized by teachers students and education operator.
This is a clear example, satisfying defended our four active use steps by education Alturas.
A total of 156 schools using.
Using our position teaching adaptive learning system during the waves of Covid.
Upgrades in the second quarter of 2022, all precision teaching and adaptive learning system. How played a significant role in helping me all switches form a high quality online teaching environment.
Ill qualify content delivery collect study information and provide interactive communication between schools and the authorities.
In the four months after the implementation around.
Around 120000 students used our system and completed a total of 11 million Culpas Palmer assignments cumulatively the value of our system is well recognized by its various users. It is a clear illustration of 17.
Tax.
Sorry capability in the digital transformation of China's education industry.
We continue to see great market potential and opportunity as we make further progress in our teaching and learning business Chinese comments continuous endeavor in the digital transformation of China's education system to implement enhance levels of personalization during the teaching and learning process has been the back.
Providing a focused amongst four hour, one smart teaching and learning offerings.
It is also to be know that debt throughout the entire Duke education progress homework is.
It's the most ideal scenario for data collection, the ability to collect homework data effectively and efficiently is a key to materialize detailed treatment.
Differentially aided in individual life teaching, although it was the support of the big data and intelligent technology, let requirement of improving homeless efficiency can be truly achieved.
The precision teaching adaptive learning system project based on intelligence murky.
Flagship taste, we have successfully delivered not only it's been healthy.
Our national Smart Education demonstration district.
Designed by Mou, which has substantial illustrate value and influence over cities and districts across China of solution has become a clear flagship example of how such a system enables individualized homework and precise teaching well mid teen normalized application required by the relevant.
Operator, well.
Well, reducing the burdens of students at school and improving learning and teaching efficiencies required by debit reduction policy.
As we expanded our sales channels into a broader range. We have signed partnership agreements with over 50 local distribution agents to enlarge our distribution network.
We are confident that the increasing market needs will lead us to a deeper market penetration.
In the Meanwhile, the company is also actively it's colo exploring where risk form of recovery starts billing model for our teaching and learning offerings with our current and potential customers.
This includes once the overall solution combining software hardware and service, although currently not approved prevalent building models.
The recurring starts building model is expected to gain.
Popularity among local authorities and schools.
Versus the traditional one of <unk>.
Procurement model because of the upfront cost of reduction and the promotion of normalized application based procurement by the Ministry of education higher proportion of revenue from recurring sources building model also mean, a healthy financial profile, given the steady and predictable ongoing.
Revenue stream, we have already seen a recent product expected to be operated under this model.
Positive feedback from the local Education Bureau on such recovery starts selling model.
In terms of off campus.
We will continue to explore and improve with self directed learning product based on students and parents feedback to fulfill the divers and Martin mentioned learning demand of students and provide was targeted customer life learning content in line with the government's regulation.
Yeah.
Q2 marks a few.
Key milestones on the new business model after the double deduction policy work.
Glad to see this positive momentum being turn into projects with reputation.
And the revenue recognized.
As we deploy our das business opportunities and expand our sales network nationwide, we grew even more determine our new strategies and so increasing amounts of business opportunities arising.
Looking ahead, we expect our teaching and learning tax business to continue significant proportion to the overall revenues in the coming quarters.
We are confident that the synergy is extreme.
Linkage between <unk> and AV campus business will enable us to build a high quality education platform, driven by science and technology with ingenuity, helping that digital transformation and upgrading of China's education industry, reducing the burdens of James and Skus, improving education efficiency.
And making contributions to the promotion of China's education reform.
Now ill turn the call over to Michael obviously helpful to walk you through our latest financial performance. Thank you.
Yes.
Okay.
Thanks, Andy and thank you everyone for joining the call I will now walk you through our financial and operating results.
Please note that all financial data talk about preventive in RMB terms.
I would like to remind you that the quarterly result, we present here should be taken with care and reference to all potential future performance are subject to a potential impact from seasonality and one off events as a result of the series of regulation introducing trial in 'twenty, one and a corresponding adjustment to our base model organization and workforce.
The second quarter of <unk> 22, as the third quarter of operation. After we officially seized our online K 12 after school tutoring services.
We generated revenue purely from our continuing businesses.
Our new business strategy has shown positive momentum in the second quarter with <unk> teaching and learning businesses.
In addition of delivery during the second quarter of the charts on Youtube.
As a result of our improved operational efficiency, we are delighted to record net profitability on an adjusted basis for the last three consecutive quarters.
Net.
I'll go through our second quarter financials in greater detail.
Our net revenue were RMB $133 5 million, representing a year over year decrease of 81% from RMB $617 9 million in the second quarter contract you won.
The decrease was mainly due to the cessation of our online K 12 tutoring services by the end of 'twenty, one to be in compliance with the latest PRT regulation.
However, when compared with the net revenue excluding those from online K 12 tutoring services. Our net revenue increased significantly from $8 9 million RMB to RMB $133 5 million during the same period, representing a growth of over <unk>.
<unk> thousand 14 times the.
Company's teaching and learning SaaS offerings are contributing an increasing proportion of the company's net revenues for the second quarter of 2022, when compared with the previous quarters.
Cost of revenue for the second quarter content. It too was RMB six.
The $63 8 million, representing a year over year decrease of 74, 3% from RMB $248 million in the second quarter of 'twenty, one which was largely in line with the decrease in net revenue due to the cessation of our online K 12 tutoring services.
Under the new regulatory and business environment.
Gross profit.
Was $69 7 million, representing a year over year decrease of <unk>, 5% from $422 9 million in second quarter was <unk> 21.
Gross margin for the second quarter content. It too was 52, 2% compared with 63% in the second quarter of 'twenty one.
On the expense side.
Total operating expenses for the second quarter of 2022 were $103 8 million, representing a year over year decrease of 85, 2% from <unk>.
$702 six Noah in the second quarter of 2021.
The total operating expenses for the second quarter of 2022 included 31 million of share based compensation expenses.
Yes.
Sales and marketing expenses for second quarter on quantity too.
$11 7 million, which included $3 4 million of share based compensation expenses.
Resenting a year over year decrease of 96, 2% from $306 7 million in the second quarter also until July .
This was mainly due to the decrease in promotional cost expenses and advertising expenditures as a result of the changing deregulatory environment as well as staff optimization since the regulatory change.
Tom.
R&D expenses for the second quarter, contrary to RMB $35 7 million.
Which includes $7 2 million of share based compensation expenses. This represented a year over year decrease of 84, 4% from 229, 5% in the second quarter of <unk> 21.
Kris was primarily attributed to stock optimization and expenses saved.
In line with the business adjustment.
G&A expenses for the second quarter, 2022 was $56 4 million, including $19 5 million share based compensation expenses, representing a year over year decrease of 48, 5% from $109 five milling the second quarter 2021.
This decrease was primarily attributable to staff optimization and expense saving measures in line with our business adjustment.
Loss from operations was $34 1 million compared with $279 8 million in the second quarter of 2021.
Loss from operation as a percentage of revenue for the second quarter of 2022 was negative 25, 5%, which was significantly narrowed from negative 41, 7% in the second quarter thoughts on tier one.
Net loss for the second quarter of 2022 was RMB 26.
$4 million compared with a net loss of $266 7 million in the second quarter I'll touch on tier one.
Net loss as a percentage of net revenues was negative 19, 8% in the second quarter of 'twenty, two compared with negative 39, 8% in the second quarter of 2021.
Our adjusted net income on a GAAP basis for the second quarter was 122 was positive RMB three 6 million compared with an adjusted net loss of RMB $218 2 million in the second quarter of <unk> 21.
Adjusted net income as a percentage of net revenue was positive two 7% in the second quarter of 'twenty two.
Potentially improved from the negative 32 point.
5% in the second quarter of 2021.
With that I will now provide our business outlook.
Based on our current estimates telephone that revenues for the third quarter of 2022, I expect it to be between RMB 120 million and RMB $114 million.
This estimate that revenues for the third quarter of 2022 is derived entirely from the ongoing business of the company's business transformation and does not include revenues from legacy online K 12 tutoring services.
This estimated range represents a significant increase year over year as compared with a relatively small base of the net revenues generated from <unk>.
Online K 12 tutoring services for the third quarter Ofcom printing lines.
I would also like to note that our T training and learning cost products.
Involve education bureaus and schools and a <unk>.
Typically needs to go through a long cycle of bidding process.
It is never to believe subject to potentially delaying project bidding process, our project delivery in process due to factors such as Covid outbreaks and others.
This means our revenue recognition progress might fluctuate from quarter to quarter due to factors that we have limited control over especially.
All three quarters of our revenue ramp up period.
The forecast Refract 17, <unk> current and preliminary view and is therefore subject to change. Please refer to the safe Harbor statement containing our earnings release for the factors that could cause actual results to be differ materially from those containing any forward looking statements.
That.
That concludes our prepared remarks. Thank you operator, we are ready.
Again, a Q&A session. Thank you management. So as a reminder to ask a question you would need to press star one one on your telephone.
Standby, while we compile the Q&A roster once again to ask question. Please press star one one.
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Once again, if you'd like to ask a question. Please press star one one.
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Once again to ask question. Please press star one one.
We have a question sort of Io so much on R&D from <unk> capital. Please proceed.
Okay.
Okay.
Mr. Lee Your line is now open. Please proceed with your question.
Okay.
Yes. My question is that the <unk> has announced a share buyback plan last year.
So we want to know what's the process.
Up the share buyback plan so far.
Let me take discretion.
Thanks for the question.
Yes.
<unk> announced a share buyback program.
Last November <unk>.
Actually in the progress of continually buying back the shares.
At a speed that we consider that a property so far.
Our plan is to continue such buyback share buyback programs.
In later periodic reports, we will provide detailed numbers about.
The number of shares an amount we have used.
Thank you very much and also congratulations congratulations.
The achievement that you guys have the true fans.
Fantastic.
Yes.
Thank you. Thank you for the questions.
To ask a question. Please press star one one.
No further questions from the phone line May I hand, the call back to the management. Please continue.
Thank you operator in closing on behalf of 17, <unk> management team, we'd like to thank you for your participation on today's call. If you require any further information please feel free to reach out to us directly. Thank you for joining us today.
Concludes the law the call.
Yes.
Thank you for participating you may now disconnect.