Q3 2022 X Financial Earnings Call
Hello, and welcome to the X financial third quarter 2000, <unk> earnings Conference call. All participants will be in listen only mode did you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.
Please note this event is being recorded.
I would now like to turn the conference over to Victoria You. Please go ahead.
Yeah.
Thank you operator, Hello, everyone and thank you for joining US today. The company's results were released earlier today and are available on the company IR website at IR <unk> com.
On the call today drummed today show our Mr. Kelly, probably be dead and the Mr. Frank who yeah Jones, Chief Financial Officer, Mr. Lee They will give a brief overview of the Companys business option operations and highlights followed by Mr. Zhang who will go through the financials.
We're all available to answer your questions. During the Q&A session I remind you that this call may contain forward looking statements under the safe hub.
Hubbard prohibition shelf, the private Securities Litigation Reform Act of 1995.
Statements are based on management's current expectations and current market operating Felicia.
And relate to events like <unk>, well known and unknown risks uncertainties and other factors.
Long beach are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results performance and.
And achievements to differ materially from those in the forward looking statements.
Information regarding lease and other risks uncertainties and factors is included in the company's filings with the U S Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise.
As required under law.
It is now my pleasure to introduce Mr. Ken Lee Mr. Lee. Please go ahead.
Hello, everyone.
We are pleased with our operational and financial results in the third quarter the loan facilitation amount to reach to the high end of our previous guidance I thought the quality has steadily improved and are both top line and the bottom line sort of sequential growth.
Against the macro okay, the one thought to economic slowdown and the consumption.
The COVID-19 resurgence.
Our performance further demonstrate our healthy fundamentals, you're fixing strategically positioning carbon strategy and strong execution.
Capability.
During the third quarter, our total nowhere mountain facility originated reached to about RMB 20 billion.
So 31% year over year, and 17% quarter over quarter, we continue to improve our asset quality.
The prudent risk management unless sequential basis.
Delinquency rate for all of our new loan past due for 31% to 60 days decreased from 193% to seven 7%.
I ended up in September .
Even though nation with further expanded our premium borrower base, our number of active borrowers increase to one 4 million in the third quarter.
We are in the company's history.
They see expanding premium borrower base has underpinned our quality goes during challenging times and the lays a solid foundation for our future development.
Moving ahead, we will continue to enhance our risk management and the borrower acquisition efforts.
We believe China's consumer on the micro and small business financing market still have.
Great well thank you.
And we are confident of delivering sustainable growth in the long term.
During our recent demo we continued to execute our share repurchase program initiated earlier. This year. This share repurchase program is aligned with our commitment to enhancing shareholder value and it reflects the board's confidence in the company's long term prospects.
Our board further increased our share repurchase program to $30 million 30 million U S. Dollars, we believe that our business strategy and execution will continue to further enhance shareholder value in the long term.
Now I will turn the call to Frank who will go through our financials.
Thank you, Ken and Hello, everyone. We are pleased to deliver a steady financial performance in the third quarter the chosen that.
That revenue increase.
Quarter over quarter to RMB 895 million.
Net income increased by 14% quarter over quarter to RMB 212 million.
We continue to deepen.
Collaboration with institutional funding partners, so personal finance to eat and disciplined cost control measures.
Improved operational efficiency.
By my quote doesn't see.
We believe we are well positioned in the market with our truck right.
Technology and underlying Bonnie straight, we will strike a balance to drive long term growth and increased shareholder value through.
So capital allocation strategy.
Now I would like to repeat some financial performance for the third quarter. Please note that all numbers stated in.
RMB and rounded up.
Total net revenue decrease.
7% to RMB 895 million from RMB 964 million in the same period.
Tony what partially due to a decrease.
Total borrowing costs all with the borrower.
And also partially offset by the increase the total loan.
Our mountain facility and originated this quarter compared with the same period.
2021.
Our recognition and our servicing expenses increased by 12%.
RMB 540 million from RMB 484 million in the same period.
On these honeywell primarily due to the following factors.
An increase in commission fees, resulting from the increase in the total amount of facility and all the journey this quarter.
The increase in interest expenses.
The result of increased payable to the institution upon that promise.
Partially offset by a decrease you shouldn't see pay for the insurance company.
Provision for the loan receivable was RMB 17, geely compared with IV candidly.
In the same day in the same period of 2021.
Due to an increase in loans receivable held by the company as a result of increase in the total amounts of facilities and Oregon need this quarter compared with the same period of 2021.
How should be offset by the decrease.
Average default rate compared with the same period of time.
What <unk>.
Income from operation was I'd be 300 million.
Hey, I was RMB 411 million in the same period.
2021.
Net income was RMB 212, and really compare with IV.
260, 67 million in the same period of 2021.
non-GAAP adjusted net income was RMB 230 wasn't getting compared with RMB 277 million in the same period.
'twenty one.
For further financial information, please refer to the earnings release or our website.
Regarding our share repurchase plan.
September 32022, we announced.
Our board also increased our share repurchase program.
We're trying to many problems.
Some of you had 15 really exactly to September 2023 today, we had purchased an average of.
About.
218000, Ed, Yes, and approximately 38 million class a ordinary shares for a total consideration of the U S 18 million.
No that was 16 plenty plenty to eat.
Announced that our board had authorized to further increase the share purchase program. So yes totally meeting.
Yes.
Purchase program will be me.
So it was September 23.
Now for our business outlook, we expect total loan a bump and that's really paid.
Or originated for the fourth quarter of 2022 to be between RMB 19 5 billion.
And RMB 21 billion.
For the full year of 2022 we expect the total loan amount.
Facility in Oregon to be between RMB, $71 5 billion and RMB seven.
Of these three meeting this forecast.
Our current and preliminary views, which are subject to change now that conclude this concludes our prepared remarks, and we would like to open the call to the question.
Please.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw your question. Please.
Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Brad <unk>.
With equinox capital.
Please go ahead.
Hi can you discuss your outlook for the take rate and just any kind of.
A discussion about how the interest rates have been trending.
Since our since Q3.
Yeah.
Yeah.
Regarding our take rate.
Ah as Oh, so basically a skill Oh, you know in the in the past as tools to meet the demand to regarding the you know the the put us all should be below 24%.
No it's not how.
But it's all part of it so.
We are somewhere at the take rates for the different part of the business between.
2% to 3% all the way through like a 8% to 9% so for different products.
Pick up we do not gave overall take up rate.
You know what what was that.
Okay.
Right. So my question is really do you think the interest rate that you can charge borrowers.
Has that sort of stabilize as it is or is it still continuing to go down what kind of competitive pressures regulatory pressures or are you continuing to see.
The pressure from X Ray is mainly from the regulatory pressure.
We expected that we will continue to go down.
To be stabilized is sometime in the middle of next year.
<unk>.
That's the best answer I can I can give you right now.
Okay, and how are you able to continue to generate such strong loan demand.
Then relatively very little.
Sales and marketing how are you finding customers that fit your risk model.
Well actually we did see a we spend more on sales and marketing compared with the same period last year.
Uh huh.
I think.
Mainly you know.
The demand for wood products demand up to the mark or potential market.
It's a very very large we only I mean for the all the players put it together.
Very small.
And each of those.
Those demand.
1111 factor you know maybe the benefits to us is that <unk>.
Is regulated.
From capital the Islanders puts back to it's been.
Be literally very strong strongly by the regulator for the last year or so so they are willing to shrink our loss so.
Everybody else in the other.
Other players in the market at all costs.
Got some shelf I'm common pattern overall overall market I believe still quite stable lives.
Never never tried so much.
Hum.
And are you continuing to target.
More individuals as opposed to SME.
Oh, well I think most of our customer is the individuals' even though.
I'm not quite sure you know somewhere between maybe.
10% to 20%.
Hum.
Small business owner Oh smokers.
We don't have the exact lets pick up we don't we don't we don't we never have a pool.
All of those figure out whether we get.
10% to 20% without too about the small business owner also.
Mhm.
One other question about your share buyback.
What is the shares outstanding for your class a shares as of the end of the quarter so not the weighted.
Average, but what is the actual share count as of September 30.
Okay, I think that I think are the share maybe you know I haven't maybe like the November 13 number but that number is maybe a little bit but not quite.
You know a big difference from what do you want to know so we have a class a share it's about.
$193 million 429.
<unk> thousand and 88 class a shares and we have a 97.600 million.
Our class B shares.
We we in aggregate, we bought back about 38.088 million $88 $850 55.
Common class a shares.
Equipment, because some of them some of them among them about our 'twenty, one kind of one 201000 days.
Yes.
One of it is it's powerful about six ordinary shares.
Our class a shares and class B shares the same thing, but except voting power.
Okay.
Right and how many of those so that reap the $38 million.
Was that repurchased entirely in the quarter.
Yeah.
No.
In the quarter I think.
I think that the quarter, we did about 218.
<unk> thousand 178.
Sure, Yes and.
28 million 201.
772.
Oh isn't really class a shares and actually we already did in now.
You know as you.
900, and another 9 million almost 10 than they did in October .
Okay. So it's interesting how you're executing the buyback it seems that you're not.
You're able to do it in the open market here.
Here in the U S because of the volume trading volume is very low.
Yes.
The volume is indeed, it's very little and we are under the rule like can be found can be 18. So we when we can.
I you know Ah Ah you know like a you know all electric below 25% of flow and ER and you know.
On a daily basis also we cannot if any.
And anybody that's higher than that so amount 280000 share of only about 86 million.
Is it what are some of the market.
Beautiful.
2000 and ship it.
It would fall back up on me.
I'm one of the employee.
Yes.
Also during the building.
So do you know can be though.
The only other shares also.
Oh, the window and the 9 million as we signed a contract with them in the open window.
It took them some time to set up the.
The account to receive U S. Dollar so until like October we pay out the money.
Yes, I hope you will continue to repurchase our stock.
Stock at these levels, you're obviously trading well below book value.
Your price earnings multiple.
Our very very low.
Yeah.
We are you know are we expand all purchase program, which is demonstrate our intention to continue to do the buyback, but ah, but the you know.
Thank.
Based on current new ballroom I would still expect to do.
Very low volume that will be bought back from open market.
That's the situation trench, although we have work do you have a few well a true individuals willing to sell so they're across Asia back to us.
Actually so so you you will you will see the next quarter, we will see more but not as big as <unk>.
You know the number we we just already did.
But don't look for it but don't those those.
Those number we we I I I I tactically, we already bought back a.
Total over 11% or the class, a and class b share equivalents.
From the from the market will continue to do that and we may be another another few percentage point to do that after that I think that will we all situation will be depending dependent.
Market volume and for the next year I think that we will use a combination of all but stopped buybacks and dividend.
To truly come to shareholder value.
That sounds great can you or are you able to most likely most likely in the second half as they get.
Most likely that they're going to pay all that most likely would be happened in the in the in the in the in the second half the last next year because you know.
Is that is it took her bother wouldnt get to set up a mechanism to true.
Forget I'm be.
Converting into the U.
U S dollar.
You know what.
We like where do you like a 5% of the Texas, Texas Tech pack on the uncles dividend payout.
To the Hong Kong.
Tyler has a you know as a currency control mechanism, what China until now don't have a a free fleet conversion I M. P. M. A U S dollar or other currency no time trying to have a habit of control out of place. So if you want to do that kind of a thing you need to have a.
Some mechanism to set up but we are we are doing by the we expect to be a mix.
And to be finish Ah you know in the first half of next year.
The money, we use right now he's always use our currency.
You know our U S dollar and you know we got us to IPO.
Right.
How are you feeling about next fiscal year do you still use.
Obviously dealt with a lot of <unk>.
Headwinds regulatory economic and.
In fiscal year 'twenty two.
Some of those appear to be lifting going forward. So I would presume that you've still been able to grow your loan originations even in the face of that how.
How are you feeling about what the potential growth could be for fiscal <unk> for next year.
For the next year I think the skill.
Having you know great uncertainty regarding next year I think that's why you've never heard of anybody even as.
And have you any any play it give you any concrete forecast for next year.
I think the biggest uncertainty is this still a.
Live deteriorate, you know stuffs, and but but but the general feeling is after a truck after finishing with 20.
The Party Congress you know the leader leadership, you know be set up and the overall all the industries.
Back to you know there would be no no mall.
You know who are calling in you know you know.
Sure.
You don't measure a to.
B to B to B issue, and we will Oh, the industry regarding to the regulatory would it be focused on implementation for the color on that you know all the stuff they would be issued before so we will you know Fortunately for us as we all know in the first cats to be pets those through.
We will definitely sort of a follow up.
I like them all.
And wherever you know hopefully they will give us some example, but.
Once again, we were cautiously optimistic.
Both of the mistake for the next year, but but there's no guarantee.
Okay last question and then I'll drop off.
In terms of your stock and the listing here.
Here in the U S. I think one of the big concerns that investors have is that you could be delisted.
For various reasons.
What assurance can you give.
Investors that.
You're going to be able to.
You know find some way to help.
Remove that risk of delisting I mean would you consider taking the company private if it came to that.
We we don't have a we don't have our intention to be listing out no. We don't have a plan to do a second listing in Hong Kong because we we we couldnt do second listing in Hong Kong, because our market is just not big enough. So that's an option for us, but we are very.
Piece two to know you know the.
Uh huh.
The examiner Hum P. P. P. C. L. D did it did they wrap they wrap up their early work in Hong Kong earlier.
That's two weeks I think that you can Maxim was he met two months I think our ACC will have some kind of a.
No valuation with Chinese Finance Minister I think that those will.
Two large extent will resolve the issue regarding potential risks.
Chinese to list the company that you have to be delayed because of U S law.
Honestly the listing is mainly as it is is it kind of sounds from some U S sites not from Chinese Society.
So if that issue to be resolved.
So which means all up Oh, the oddest auditing firms intact in China.
They're all working paper could be subject to subject will be subject and are subject to examination by the PC and it'll be in the future I think the.
Most of company, maybe except a few state owned company.
Yeah, maybe exception with all the private company.
At least that you guys will be continuous.
It is the U S. That's that's that's the best I can tell you.
Yeah.
Okay Best of luck to you for next year.
Okay.
Yeah.
The next question comes from Matthew Larson with thin K deal.
Please go ahead.
Okay. Thanks for taking my call the previous.
Color covered a lot of ground and so probably answered a number of my questions.
But let me ask you all this.
U R R.
On the share buyback.
You do little if any for the a D. A C 212000 times roughly $2 is.
Four of 500000 I think that's what you had said you had done last quarter. So the transactions have been done in the class a or b shares.
Which reduces your outstanding and increases your earnings.
You know nicely.
So that's a positive but I guess, we won't see a bid in the market here for the Etfs, because it's not very liquid but.
Hum.
Why do you think your company.
Trade to one times its earnings Okay. Its entire capitalization you earn and you've also got a cash balance that you know is almost equal to the entire market cap.
As you know another company.
I'll just mention it's a urine di which trades at one fifth of its cash they have no debt and it trades at less than one times earnings.
And you.
Levels that make no sense you know.
At all because.
You know.
Trading book below the cash on the balance sheet, particularly if you're growing where you are so my question is why do you think that's the case and two <unk> to add to that.
What to fin techs.
You know lending platforms like you have.
What sort of multiple do they trade at a say a in Shenzhen or Shanghai.
Hong Kong, so we as a comparison a we could see you know.
U S investors are unwilling to pay up versus if you were to somehow.
Got to get realistic or two to go private and sell to somebody else or.
It must be a frustration on your part that the company is twice as long as it is.
So I'll I'll take that question I think it's really difficult to determine what is the right price for the stock right now.
Some somewhat asked us before.
My answer has always been well this is really not a question that I'm trying to answer I think that this is a question that the U S. So you can rest or probably have a better answer that we as we as the management of the company.
Even though it's difficult to determine the real price.
I think that we all agree that our valuation certainly much much lower than what we should be so in that sense that we still hold to that some people will take a interesting often into buying our stock.
That being said I think it was right now, though the fintech valuation has been extremely extremely low and are.
You ask us what is the comparable company to us in terms of either each year in mainland China or Hong Kong market.
I can tell you that there are some motion tech stocks in Asia. So there absolutely no comparison.
There are some.
The so called authentic company, but I'm really not pay attention.
As the management of the company that we don't really pay too much attention.
Stocks that our goal has always been trying to deliver stable growth in terms of both scale and profit for our company and that has always been our goal.
No matter, what's the what are the price of our stock there.
Always trying to achieve that goal.
And in terms of what is the right what is the right to vital issue model for our company I think many people can see that we continue with the dealer very stable goes very stable profit body, though the concern has always been number one will the supervision supervision.
Supervision.
Supervisory Committee will allow our company to survival whatever that is and I think that's always been the number one and the second one of course is the.
Due to the the so called conflict between China, and the U S than there has always been some call uncertainty or vehicle.
With regard to how long that our company can be listed in the market I think that both of you on the previous.
Colorado has been asking the same question because all these two huge uncertainty I don't think that you will see.
Not not a high valuation.
Not a human fair valuation for the Fintech company. So my my prediction pass all of them can be that pass along that wish to offer D D.
Got it.
We want to see a very high valuation or give a fair valuation for our company.
Let me add some more color.
Your question I think your observation.
Is correct, which means.
Our not just our stock all up here you know you know Aldo.
P S.
Okay.
Space all the.
So costing senior Tech company in China.
All the buy up with them.
Have I seen.
I'll try it for some time you know the reason the biggest reason I think I could come up with it.
The first one is legal risk.
Uh huh.
You'll see like.
Like our educational.
Company in China.
No.
Devastated.
One day.
You want to take before you are legally could be upgraded but secondly, your auto business, that's that buy those kind of risks without any warning.
Definitely.
Kurt.
It will be applied to anyway.
Our fintech industry, because we charge maybe.
You know the bulk of the market that we focus on is the supply market.
So.
So it was not a politically correct all favorable in China.
I believe you will understand that the.
The second one is I think.
You know say lightweight all the all of the older buyer at a purchase.
In the U S is a as you know.
We spoke to say the least because I know that all of the institution, though they have a responsible legal responsibility responsibility. A 222 responsible manages five money and therefore invest that something could be out of the business.
All the legal the auto business in one day is just something cannot be accept I've kind of risk that is not something you can calculate I think about the big legal risk weighted the big Sweden.
The other reason is the you know the run up on up phenomena is like that.
No not yet so we are traded below around or below the cash because you got them.
But you know contrary.
Nobody seemed like they're losing money.
And and the the only.
Conclusion.
Or the order management and in the pack.
Any type of a company in China will manage a company very irresponsible way, they're not just.
Not going to increase shareholder value.
And we'll get will be squander or the money.
Yeah that that otherwise how can you.
I like that you know price those stopped at her guests such lytic.
Critics weight loss.
But I think at the time.
Kal and I I think the P C L b.
Hum.
<unk> ability and can examine examine the auditing.
I'll be fun operate in China, we made maybe a wheel.
And he'll be alleviated those kind of with some concerns over the time.
Hum.
And.
Also I think.
Is the maybe a circumstance I think for.
For the for the for the U S investor They probably will we will like to see.
You know this.
Regular regulatory situation.
To be you know stabilize.
Stabilize somewhat before any meaningful investment.
For Us I think we Oh, you know just a.
Pay for this advantage.
And two always to out the door.
All we can to manage the company the best week, Knowhow and do them all that back and that.
That kind of stuff I think that over the long run.
And maybe maybe.
What do we do right now will be pool, who correct.
Thank you.
Thanks for that answer I have one I guess, one more question Hugh.
You've touched a couple of times about the threat of regulatory change that could eliminates your business model. So that was one of the risks.
What would be the incentive of authorities in the PRC.
Two you know eliminate a model that.
Is presumably you know, helping with consumption you know getting money to people who need it to consume.
And you're doing it effectively at a rate that isn't a frankly, a much different than siri United States. If somebody has credit cards, which are very common.
But why.
What what incentive for the authorities is there too.
Too.
Do away with an industry that increases our consumption and it's.
Something that people rely on you know to manage their own.
Cash flow needs.
Whether it's to buy P CS for school or.
Whatever the case might be so why why would that be a risk.
Oh, I'm, sorry, we can't we can't come and they'll want to put them in the same right.
We work closely with them. So we don't see any way that we will.
Both the government and US Congress show good.
The results of that I think that it will be a grateful for us and for our industry.
Yeah.
Alright, and then I guess finally, how come there are no fintech companies that trade.
And in Shenzhen or Shanghai.
There's four or five a trade here in the United States.
Yeah, there was more but some of them some of them weren't managed very well.
You know I'm thinking well you know the ones I'm, referring to of the likes of Fintech or $3 60, a digital.
But why how come none are trading over there.
The P. R C.
Well that person that already answer your previous question right.
Yeah.
Actually okay.
Right.
I'm sorry.
No. That's it I think that you are your observation is very acute and I think that's basically the answer to your previous question.
I mean, the only one that note not to notice ant Financial's had trouble coming and it's a massive company, but there is expectations I guess that they will.
Be lifted at some point.
But anyway, that's a different discussion.
Very well. Thank you for your answers and again hope you continue to do what you're doing which is returning money to shareholders. We're finally getting some sort of positive response.
As your stock is lifting along with many of you know.
Stocks listed.
In the form of a D. S. Here so thank you and.
Well look forward to following your progress.
Thank you for your questions.
And we have a follow up from Boyd Hines with Equinox capital. Please go ahead.
Thanks for allowing the follow up question.
Just to follow on that discussion and conversation about how to.
Increase our interest in the stock here in the U S.
I don't know that your followed by any analyst.
Out there so it's very difficult.
For investors outside of China to EBIT.
Your or learn about the company and the other thing that you could do.
Uh huh.
Our management team could purchase shares here.
Hmm.
E D S. Four.
And make some note of that publicly.
It's a reiteration of your confidence in the outlook of the company and in the company's shares.
Which I think.
The deep listing that concern is and the risk is real because as you've said you were not large enough to re list in Hong Kong.
So.
The concern that I have is always is that if you do lose your listing here.
Here in the U S.
I don't have any recourse as an investor in your company.
So if you could somehow you know.
Speak to those concerns that would be great.
Now we could we could consider that thank you.
But.
Yes, the only only when I'm going to have us like Oh, I, just write off the IPO and our you know because the staff.
<unk> proposal and so that's been most people.
What's why to cover us.
I think you know maybe in the second half of next year after the regulatory situation.
More or less clear and Oh finished we will we will initially those effort to recruit someone to come us different tests that suggestion.
Thank you.
And we have a follow up from Matthew Barson with Acadia.
Please go ahead.
Thanks for taking my call again.
The threat of delisting.
Hum.
I I had.
Yeah.
Historically, not not dismiss but thought it was over over a rated for many companies because.
There have some that are just.
But do you listed for other reasons historically here, maybe they weren't didn't get their ordering up their auditing done in time, their 20, fs or something and they went to a the bulletin board or pink sheets, but they still trade at and many of them that I've owned or have went private I'm not always at the premium I would have liked but.
If your companies too small to be listed in Hong Kong.
You know what would be the recourse would you take it taking a private it would be the only thing because you would need to.
The year over your majority shareholders of people the founders of the company.
Our wood wood.
You do need some vehicles who to manage.
Or if there's a threat really that's what's you're too small to do list in Hong Kong.
I mean, there must be many small companies in your other exchanges on the on the mainland.
Or would you sell out to a larger entity that that trades at <unk>.
10 times earnings I mean are you know you're trading at one time, so you could sell out.
If you if that was the only alternative in many times your current value and it would be accretive.
Two any borrower I I'm, sorry, any buyer I mean are these options you've considered because there's been many small companies that have gone private generally by the founder.
And you know at a premium.
Because they went public 10 years ago like $10. Another one.
What a great transaction you raise money at 10, and you buy yourself packet.
No.
Fraction about even though you've grown five or tenfold.
So.
I guess, if you could just address a little more about the risks of de listing what recourse outside of going private is there.
Just one moment please.
Boston Speaker location I'll need to reconnect them just one moment please.
Thank you.
[music].
Okay.
Excuse me. This is the operator I have reconnected the speaker location, but Mr. Larson you wanted to continue your question or I think you'd finished.
Question, well I don't know if there you've heard did you hear the whole question.
Yes, I did okay, none of them.
There's a lot of question.
I know I know.
You know I I first first of all we believe the.
Kansas out to be the lifting cases, very small because we always manager at.
Our business and even manage all our book very sponsored relief, we do not we do not afraid.
Afraid are you know any.
The already work or the or it.
B to B to B check about anyway. So so so so that chances are first of all it's very low and our 100%. Our effort is I think is the continued to what do we do and I think we would be.
Keep lifting in the U S and therefore the stock price.
Now as far as I know the if the lifting required if its about a.
15 million U S I think huh.
I fully beliefs.
We will now.
Trade below that threshold and I had a.
Because of what.
Because the value of our business of our company.
So so so once again, we we do not believe.
The trends of the lifting any any any have.
No.
So not just not real when we were not doing that okay.
And and talk about the what if contingency if that is it just not.
Not not not nothing not all of the focus.
And we are also running our business. The best we can when we know how and I don't believe that the lifting is done.
England imminent.
The issue for us.
For the next year or so I, just don't believe that okay.
Hmm.
That's the best way I can answer your question. Thank you.
Oh, Okay. Thank you.
Yeah.
This concludes our question and answer session I would like to turn the conference back over to Victoria Yu for any closing remarks.
Okay. Thank you. Thank you everyone to joining I found the call today, if you haven't got a chance to raise your questions me. They will be pleased to answer them to for a laugh context. It look forward to speaking with you again in near future. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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