Q3 2022 Kingsoft Cloud Holdings Ltd Earnings Call
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Thank you for standing by and welcome to the Kingstone Cloud Holdings third quarter 2022 earnings Conference call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session.
If you wish to ask a question you will need to press the Starkey followed by the number one on your telephone keypad.
I would now like to hand, the conflict over domestic Ocean IR manager. Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us today can sell cloud so called hurt when you're trying to eat your earnings release was distributed earlier today and is available on our IR website at IR adult. He asked why are you and they'll come as well as a global newswire services.
On the call today from Pizza Wow, we how our west trauma and the CEO you talked how adult and example, Heathrow Jorge well, Mr. Zhang will review our business strategy operations and the company highlights followed by Mr. Ho, who will discuss the financials and the guy that it will be available to answer your question during the Q&A.
Session that follows you ever will be he comes back new immigration.
In addition, I was loyal culinary and reference purposes, only in kids, but I needed scripts fleet management segment in Orange No language local well before we begin I would like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the security Exchange Act or 1930 people.
The money and are you finding that you are probably security litigation as well My 19, that's bought its forward looking statements are based upon management's current expectations and current market and operating conditions and relate to you and that's well known or unknown risks uncertainties and other factors all of which we are.
Difficult to predict and the money will reach out beyond the company's control, which may cause the company's actual results performance or achievements to differ materially from those in the forward looking statements whether information regarding these and other risks uncertainties or factors are incurred.
In the Companys filings with the U S. S E T. The company does not undertake any obligation to update any forward looking statement as a REIT.
Results of new information future events or otherwise, except as required under applicable law. Finally, please note that unless otherwise stated all financial figures mentioned during this conference call are denominated in RMB. It's now my pleasure to introduce our watch them out in the field you towards hotel. Please go ahead. Thank you.
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Hello, everyone.
You all for joining our third quarter 2022 earnings call.
Taking on the CEO role in August .
I have been leading the company through a systematic review of our strategy business and financials.
And during the quarter, we continued to implement various initiatives in a solid and a down to earth minutes.
First we continued to invest in technology.
It's all our core businesses and revised our original vision for cloud services.
Second we continued to review and evaluate our customer base and project portfolio.
Strengthened cost control.
Achieve a better balance between revenue growth and profitability.
At the same time, we continued to strengthen our ecosystem synergy explore high value business opportunities and pursue it pass up high quality development.
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We achieved solid financial performance in the quarter.
Our total revenues were RMB 197 billion in line with our guidance.
Adjusted gross margin improved significantly to six 3% from three 6% in the second quarter.
And our operating cash flow has been positive for two consecutive quarters, indicating that our business adjustments and cost control efforts are starting to yield initial results.
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In terms of business, we adhere to the conviction.
Building success based on technology.
Continue to focus on building key product capabilities on the Ias and Paas layer.
These efforts were recognized by Frost <unk> Sullivan lead Leo Institutes, and it's China data management solutions market report published in the third quarter. This year.
And which kicks off the cloud data management solution ranks among the leaders of the market.
Our innovation competency and growth performance.
Meanwhile, Idc's latest edition of China's software defined storage tracker 2022 first half rent of our enterprise level storage solution in storage.
Pops for in China software defined object storage market.
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In terms of ecosystem collaboration.
We stepped up our technological cooperation with King's off the office you achieved in house cloud document processing, including authentication encryption and proof reading.
Leveraging our cloud computing capabilities, we help to king soft office and strengthen the business logic layer for cloud document processing, and therefore, and thereby further improved their end user experience.
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In terms of different business scenarios, we continue to focus on our core industry verticals.
Obligating, our successful lighthouse projects and apply to customers in their respective sectors.
In public services space, we've built a modern cloud solution for a municipality leveraging our hybrid cloud and distributed cloud storage technology among others.
Oh and facilitate the management of economic affairs in a coordinated and integrated manner.
In financial services sector, we validated our data governance services capabilities, particularly in data Lake and the amount of data management and various project for a major commercial banks.
We will continue to replicate such success with more clients in the industry.
In the health care sector, we're about to complete the capacity expansion projects for the medical image crowds in regions, including Sichuan and Chongqing, a testament of our ongoing support and the monetization to address our customers' needs to expand and upgrade their existing projects.
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Overall speaking, we will continue to invest in technology.
Focus on core businesses and in House, the foundation and the structure, which enables sustainable high quality development.
Under the backdrop of the wave of digitalization, we aspire to penetrate deep in verticals up strategic choice and offer our customers say robust and efficient cloud computing services.
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I will now pass the call over to our CFO Henry is all over our financials for the quarter. Thank you.
[noise]. Thank you that's all.
And welcome everyone for joining the call.
Now I will walk you through our financial results for the third quarter 'twenty to 'twenty two.
We are actively taking measures to improve the efficiency demonstrating our strong commitment to pave the path for profitability.
This quarter, our adjusted gross margin has improved considerably and are continuously.
From the lowest point of one 2% in the fourth quarter of 'twenty to 'twenty, 2% to 3.6% in the second quarter. This year and a further two of six 3% during the third quarter.
Our operating cash flow has been positive for the past two quarters consecutively and we have achieved 100.9 million RMB net operating cash flow this quarter.
Our total revenue was 1906 to $8 8 million RMB in Q3 within that revenue with some public cloud service as well as 1000, so you're hungry at 49.0 million RMB.
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It represents a 22% decrease compared to the same period in 'twenty or 'twenty one.
The change was primarily due to the company as proactive scaling down our CDN business, what is gross billing decreasing by about 28% on a Y O y basis.
Revenue from Enterprise Cloud service that was 622.0 met at RMB.
Once you see relatively stable compared with Q2 of 2022 as we navigate in a challenging operating environment, including the impact from resurgence of COVID-19 in China.
While proactively applying a more selective criteria to a project screening to strive for better profitability and cash flow.
Our cost saving measures are well on track with our plan total cost of revenue decreased by 26% year over year.
Stable quarter to quarter.
At 1800 46.4 million RMB.
How do you see costs decrease significantly by 23, 6% year over year by $1410 9 million RMB two one south.
And $87 3 million RMB this quarter.
Depreciation and amortization cost increased by 26, 9% from 200 million RMB in the same period last last year to $253 7 million RMB, while remain stable compared to last quarter. It is in line with our revenue mix adjustments absolutely moderated the procurement process.
The public cloud.
So those are in development on the services cost increased from 160 million RMB, two $443 1 million on N B this quarter.
The increase was mainly due to the consolidation of Camelot since September last year.
Fulfillment costs and other costs was $31 9 million RMB and the $39 3 million RMB this quarter.
Our adjusted gross profit of this quarter was $124 7 million RMB, representing adjusted gross margin of six 3%. That's significant gross margin improvement was mainly due to the effect I'll call cultural measures and our strategic adjustments of our revenue mix.
In terms of expenses, excluding share based compensation.
Total adjusted operating expenses was 570 377 million RMB.
Well it seems that adjusted R&D expenses was 231.6 million inquiries from 198 million RMB, if a last quarter as we remain focused on our technology development.
Selling and marketing expenses was $125 5 million RMB compared with 121 million out in the last quarter.
Adjusted G&A expenses increased slightly from 196.0 million RMB last quarter to $219 9 million RMB, which is partially due to the one time off expenses of a Hong Kong listing project.
Net loss margin was 47% this quarter.
And adjusted net loss margin was 24.8%, but yes. They are.
Adjustments was mainly due to the foreign exchange loss.
$218 9 million RMB caused by that's like it isn't a fluctuation of U S. Dollar RMB exchange rates, which is totally a noncash item the impact on our P&L items.
As of September 30th plenty of money to our cash and cash equivalents and short term investments.
Among kids, two 5.3 billion RMB, providing us with significant sufficient liquidity a swap ratios.
Capital expenditures for the quarter. It was $253 3 million RMB, which primarily consists of payments plus of us, which we ordered previously.
The decrease all the Capex was in line with our proactively scaling dollar stadium business.
We expect to keep our total capex within 1.5 billion RMB four four yeah plenty of 'twenty two.
In terms of share repurchase program regarding of our 100 million U S. Dollar a share repurchase program, where they got four months' period as approved by the board and announced in March this year.
Where have been duly executing.
Since the release of our Q2 earnings results.
Up to November 18th we bought a total of 10 point.
Four 1 million.
S chest for roughly about 23.92 million U S dollar.
Going forward supported by our Anvil.
Cash reserve.
About $5 3 billion RMB, we expect to continue to execute from time to time.
Way to mandate a repurchase program.
These efforts fully demonstrate our board and the management of strong commitment and have full confidence in our long term business prospects of the company.
That's what's drive to reward our shareholders for their support.
And we believe our share price will eventually reflect company and true value.
Finally, it was submitted application for Hong Kong due primary listing on July 27, and 22, that's always the lifting at a potential timing is subject to regulatory approvals.
Looking ahead, although we are still implementing our strategy initiatives, including repositioning and a coffee culture of Atlas or ongoing basis.
Okay adjustments have already yielded positive preliminary results actually reflected in a clear improvement of the profit margin in Q3.
We expect our total revenue to be between 2 billion to RMB, two 2 billion RMB for the fourth quarter was 22, representing a quarter over quarter increases of one 6% to 11 points out on defense.
Why are these forecasts and comments above a base of our current and the preliminary views of the market and operational environments, which are subject to change we firmly believe that given the time the.
The effects of our ongoing strategic initiatives will continue to amplify and it reflects our financial in a mid to long term. Thank you.
Thank you. This concludes our prepared remarks, that's probably our attention and we are now how did you take another question. Please ask your question in both Chinese memory in English as possible. Operator. Please go ahead. Thank you.
Thank you.
To ask a question. Please press Star then one on your telephone and wait for your name to be announced.
If you wish to cancel your request. Please press Star then two.
Your honest speakerphone, please pick up your handset to ask your question.
Your first question today comes from Thomas Chong with Jefferies. Please go ahead.
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A bunch of thing Oh is that and number two is about the Q4 revenue guidance.
Can management comment about the trend break.
And the price cost during the quarter. Thank you.
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Thank you Thomas so.
The second question regarding the Q4, so actually you mentioned, we do see a first point and we do see a relatively expected recovery curve on the top line, but starting from last quarter and a carry from this quarter and Oh Q4.
Actually.
So the total revenue will be improving trend in Q4 and in terms of the mix given that we have.
Almost compete.
The initiatives on the C D N business adjustments on our priorities in terms of investments and the client mix.
So I think that provides us with a relatively stable base to project the public call. The revenue in Q4, so because of that I think in Q4 all of our public cloud.
As a total we will see a sequential margin improvement on the topline, but the profitability on a line off the public cloud, we're continuing to see a positive contribution for the company's total gross margin in Q4.
And on the enterprise side as we mentioned I think if you really looking back from Q1 Q2 ended this quarter and as total imagine part of the Q2 due to the Covid measures.
In Beijing City, that's preventing us from some of the project bidding and deployments and execution in Q2, which was around about April and May and sometime impartial July or June July .
We do actually tried all of past Q3, this time to accelerate the deployment of execution. So hopefully.
Some of the flagship projects, including a few important projects that we discussed and disclosed earlier for example, some of the provisioning level House had club hopefully where it can be deployed and fulfill the execution in Q4 and that will carry with it a revenue booking.
In Q4, so with that I've seen our enterprise, but you may see a relatively a little step up of the revenue enterprise cloud in Q4 as part of the total revenue contribution. So overall my feeling is right now I think the sequential improvement on both topline and gross margin in the world.
Two important parties for management team, while we will need to continue to make sure that all cost control measures of expenses life will carry forward.
Hopefully it will be have some benefits in Q4 and Q1, starting from next year as well. So it will take some time, but I think some of the initiatives. We already implemented in places just need to have the time clock and and see the see the benefits going forward that could help us.
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Thank you and I think it's just the translation of what mist adult responded to the first question soda. The Covid situation has been going on for years and honestly speaking it has been impacting the overall success.
Overall society significantly across all verticals, including us and like you rightly pointed out we are also observing and Ah you know trying to see what that might be as you might be aware our investment.
In recent days and weeks that situation in Beijing is becoming more severe to abide by government rules, we have only 20% of the workflow workhorse currently working in the office and as you know there has been one that situations like that back in April and May So, it's really difficult to predict.
The common situation and what we can do it to abide by the rules promulgated by the government. However, I think from a strategy perspective are in light of the uncertainty and potential uncertainty in future years from a strategy perspective, and what we can do is to maintain a robot them relatively defensive approach and.
What I mean by that is exactly what we commented in the prepared remarks, which is no longer blindly pursuing top line growth and about to switch to a suite of sustainability and our path to profitability and as you have seen the gross margin in the third quarter has already improved.
Oh quite a lot from three 6% to 6.3%.
So we believe that found a by abiding by that relatively conservative and robotics, the strategy will be able to navigate through the potential uncertainties in the years to come as to your question of our budgeting. We're currently going through the process of making a comprehensive budgeting.
Currently going through the first round up review and and companion of numbers are we expected to have a more clarity towards the end of December or the beginning of January . So Unfortunately, we don't have a much more data to share at this at this stage. Thank you.
Thank you.
Your next question comes from that and saying, let's see I think please.
Please go ahead.
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Yeah No question.
So my first question is regarding our non-GAAP , each other margin, which dropped slightly quarter on quarter and Q3, I'm sorry, just one year or two we expect a delay in terms of the timing for non-GAAP EBITA margin breakeven and secondly, what is your Capex plans for the next two to three years and are there any foreseeable.
We'll plan to further extend the useful lives of the servers.
The overseas peers have extended that some four to six years. Thank you.
Thank you Hi. This is Henry are happy to take on those three questions on the financial related Madhouse.
The first question is regarding the EBITDA breakeven yeah, we do acknowledge that the that the the EBITDA on a sequential basis, we actually job and they've got that but marginally.
We noted that there are a few things on the line first of all if you look at the Oh, the total expenses on a dollar value actually all our sales marketing and R&D expenses actually was quite a stable so that no major changes all of that however.
Booking of search and our G&A expenses are due to for example, the Hong Kong people primary lifting projects that we actually need to pay.
Certain fees as you may understand that actually all the deals as well.
And also given this year, we do have search in a cost cutting for example, our optimization of human capital.
The company.
Need to pay certain compensations for the people or they may choose other career tracks for things like that would get a batch of that arrangement in Q3, so, especially towards the end of Q3. So the savings on the salary has not being reflected on the expenses in Q3, while.
We need to pay even more for the compensation for the people that they choose other career tracks. So in N out you, you'll see actually it's a fluctuation and then increasing all certain expenses items, but I think these are the right thing to do for the company and.
Cost of savings on expenses will be gradually released are in.
In Q3, and I think for sometime starting from Q1 next year. So that's actually quite clear on the underlying reasons. So we don't worry too much about that but it'll all fluctuation, but are the online or the normal nice operation expense I think you will see already kind of decline.
So giving that as you probably know that our priority at this moment is improving the gross margin as we mentioned.
Gross margin has been improving from almost of only 1% last Q3 Q4 last year or.
To about six 3% this quarter that actually a meaningful improvement and if you look at growth.
On a dollar value of almost doubling from.
From Q2 to Q3 from about 660 million RMB 12 about one point, a 120 million RMB for this quarter. So.
So we do believe that improving on our gross margin will be our first.
Oh of the driver of improving EBITDA in the email and break even EBIT tiny so getting out of that we think sometime next year, we'll do hoping that EBITDA margin kind of improving a little bit faster pace compared with a corresponding sometime a point off next year AR and AR on the EDA side than we do.
With that after we complete all the necessary capital market transactions.
This ratio will further come down as well.
So that's the first point the second part of getting the cutbacks plan I think this year, we're running relatively well.
At the low end of the capital budget for 'twenty to 'twenty two.
While we print the same level of the of the revenue target I think that physical sign for the next two to three years I think we may keep a relatively same level at around about a 1 billion each year.
And you May remember, we discussed that Romania to hit a certain so replacement cycles.
Some time around like 25, 26, but I think so far where I feel comfortable regarding about 1 billion RMB on the capital expenditure, but given that we do have about 5 billion in cash and right now we have multiple access to the capital not only from the stock market for example of the long term financing and.
The cheap leasing arrangements et cetera. So we do hope you know over 90% of the capital expenditures were made find other ways to fund those cover expenditure outlay, rather than passing through our own net cash balance I think that's going to be a good point on the capital.
Type of structure, and we don't need to burn too much cash on hand.
The third question regarding the service I think are right. We do notice that the major U S. Cloud company has revised its DNA policy from four yes, two five years last year and some of them are discussing so shifting into six years, which absolutely reflecting the nature of the technology that they work.
Because most often use cigarettes starting from these two years for example, some of the expensive was.
They actually you know that the cost is the price point is high but they actually can use for example, two times off the price points, but they can use it like three or four times of the lifecycle. So I think that makes sense for the U S. P S to extend out but.
Given we do adopt a very conservative financial policy, we do not have any parent at this moment to extend our DNA policy, even though we understand extending from four years to five feel even six here, we will have a relatively a good impact on the gross margin because they have a low RPM.
The expenses, but at this moment, we do not have any plan to revise that a policy, but we we we may reserve that if we see other Chinese players have changed our policy is going to be an uplift to our gross margin and I refuse to D&A expenses. Thank you.
Yes.
Thank you that's very helpful.
Yeah.
Once again, if you wish to ask a question. Please press Star then one on your telephone and wait till now.
Our next question comes from Joel <unk> with Nomura. Please.
Please go ahead.
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It's just a quality issue.
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So with all of them that you can imagine improvement I'm not going to talk about saturation, so where I come from in some public call into plus collar and Oh, it would be sustainable into the first quarter and going forward. Thank you.
Hi.
Well, thank you Joe.
Yeah on a on a P. P. Martin you touch upon a few things the improvement are the breakdown are the root causes and the sustainability.
It's a very broad scope actually so I I think I think I'll start with the with the with the reasons first.
So there are a few things we actually.
I'll walk home as soon as Q4 last year. So it's not actually happened only this quarter, but there are a few things evolved as you may remember first of all yes.
Kind of off of cutting some losses for certain loss, making clients a member to we optimize our product mix right. So tried to make the computing.
The storage some of the big data solutions, and our search and.
More high value added products and a more profitable products.
I mean, you must have been more right. So I think these are the the second reason we started to do that from a Q1 this year.
And the third reason is the improvement and screening of the projects. So as soon as I mentioned in our CEO remarks.
We actually starting from this quarter.
Have adopted a very comprehensive approach to analyze the returns on each project.
And different ratings internally for different clients et cetera, So we can prioritize and select the right projects, while walking all and some of that has already a year with a good result for this quarter as well.
And the third.
And the last reason he's actually if you remember last year, we do a kind of learn our experience in the lessons.
We bought a little bit too much of the service and we ordered a bit too much of the bandwidth and cannot be returned.
Eating up on the gross margin a loss here.
Especially the second half. So this year, we have a change our process to evaluate the procurement process to make sure that they.
They do not go over ordered and we can't use them wisely.
So I think these are the kind of four different things that helped the gross margin can improve for this quarter.
So to see the results so even though it did something last year, but it's going to be a good time to see the results are speaking about the mix I seem to both public cloud and the enterprise cloud has contributed to the incremental 60 million off that margin improvement because as you know given the.
As off the public cloud and and perhaps cloudy its actually quite balanced at we cannot lose any of that so it's both important and honest sustainability.
Thank the let the first we'd reasons as I mentioned.
We will carry a long way so it's going to be you'll see hopefully we can see a better margin in Q4, and sometimes you don't carry over to next year as well.
And certain enterprise cloud projects as you well know we are booking the revenue only out of completion, but some of our coffee already booked so hopefully in Q4 at the peak time of enterprise cloud delivery, you will see additional step up or an enterprise cloud contribution. So if you. If you want to break down the reason for Q4, let's say going forward I think unpriced, probably will be a relatively.
Even more important.
It's probably close in Q4, given the timing of delivery on that thank.
Thank you Joe.
Thank you.
Yeah.
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The next question comes from Timothy <unk> with Goldman Sachs. Please go ahead.
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Kind of what the question was also quite yet.
Not good.
Thank you management for taking my question I'll make which one will be about our outlook for Q3 as we understand this series to transition year in terms of opinions of draftsmen.
So our impact from the macro environment as well as Covid could management share some thoughts on how we should look at the the demand all the horrible car industry in China and also for our revenue growth when should we see a inflection point or himself call revenue year on year growth into 'twenty sorry. Thank you.
Well it sounds like not having enough information.
But I.
I was having a good well.
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I should say.
Data center.
So two quick EMA sea.
Chosen either switch or not.
How about to see what would happen.
Let's see.
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How about you usually eat.
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You, usually even shocks to the 20, new heights and.
What was it one side all that often and she's been at sensors for sure.
Of course, you solely.
So the Sorel toone dollars Cushing will be all about weekends with him.
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She's the leader and sometimes even a guy somebody we don't anybody that Saddam Susan.
With me it but are you at.
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I mean, you had some weight to hope to go of course attitude.
It's only that visits is up.
Quite a change either you go you go you can hold or you got you.
You can follow to you all.
Does it all I should put that <expletive> in them.
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Okay. So what they say that he has spent his whole quarter splits this all day.
Being a union young and they're about one the highest food.
He told me that she didn't sinter feed fines that you choose to do so even though I'm away.
You'll be tighter you should you should ask a question.
I'll call it one more way Chi.
So clearly you know I'm always shoot.
They just hung she's so you'll need to shop for men's women's and that which would you choose your choice.
They've got they've got Tony I wish you'd bought it right.
We believe that he and she can suddenly the hall townhome fishing when she's.
Yeah.
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Teaching to them it doesn't do what do you call them.
Of course, you don't Wanna Hobo cobos, sending somebody would be all time, so a total of call it Basel IV.
If you're talking about.
So even though she's a woman's once union hashing, just since I took the job asking them to do that.
Danielle Coker that you guys did a P C.
Oh, Hi, and just kind of a woman in Italy.
Hi.
So you're getting the usual that's homegrown that he can get bought Samsung LG and you'll know when the Hiseq, which you couldn't shop towards unions will cope.
Now hold a one click you don't send that.
Two sinter tied to it.
How does what he says it shouldn't.
Aledo, which she said she she's hooked up.
That's just what you guys have to sue them that you're going to eat a father.
It's at all.
That's all that I saw that she said she was this all.
Well I mean, you didn't pick up on the tour.
So I can tell you I wouldn't know what meeting.
What about you and me have all day.
So as you called it a hot that shouldn't shouldn't salt that shows you the truth.
It doesn't mean.
You'll also find out how they how long.
Yeah.
Yeah.
Okay, just a very quickly responding to your question on the first point is as I commented previously we're currently undergoing the first round of budgeting for the next year.
And we currently do not have a comprehensive picture, which we will be able to happen towards the end of this year to share more color to the market and to the investors now the second thing is although our that means that I think I can share with you some of my thoughts and what they may call situation and our strategy.
In response it out the first thing is b, given the pandemic situation and the control measures already in China are we have been changing the guiding principle that commentary from revenue from the pursuit of Romney broke to profitability, which has also changed.
We have been increasingly observing within the suckers.
The second point being the there still remains significant uncertainty to the Covid control measures that got that will come and also including the uncertainty of what the country's overall economic plenty. After the two sessions in 'twenty three is gonna be.
So oh generally adopted a conservative and defensive approach and this approach, including some of the folding measures are number one we will activate some of the projects on the customer and transaction data has not been profitable for a long time, but the long term and secondly, we have been looking at.
Our customer base and adjust the customer based structure.
Particular in the past with some of the larger customers have been commanding.
A large share of our revenue.
Revenue contribution and how the impact to our financial performance and they might decrease at that revenue contribution and increased the revenue contribution coming from that wasteland shoulder level kind of customers and certainly in terms of enterprise cloud services will continue to dig deeper into the strategic plan.
Selected verticals has.
As we have done in the past, but also cautiously explore new verticals that are highly hum.
Beneficial for the cloud industry for example, the electric vehicle industry. That's the some of the thoughts that I can share with you on how to make carnival. Thank you.
Yeah, I think it second time as he also at one point as well, while we Oh you know follow the Mark has on a client demands calverley in a while we are looking for as you go do us well for the next kind of acceleration.
And are the a V shaped or acceleration of the demand from clients.
We have a capacity.
On a cash reserve.
As well so as you can see that we are to deliver on that.
Positive operating cash flow of five.
This quarter and hopefully I don't know for next quarter and going forward. We can continue to do that so we remain relatively robust on the cash balance in a while we're investing carefully the potential new verticals that will carry a relatively faster growth as total management for example, the new energy E D.
Cars and other verticals as well so I think we're doing all worried too much about the timing because we have enough cash and we can wait for the market to come back and work with the right clients. So I think that that's actually one more point I just wanted to say as well. Thank you.
Yeah.
Thank you that's very helpful.
There are no further questions at this time I will now hand, the call back to Mr. <unk> for any closing remarks.
Thank you operator, thank you all once again for joining US today. If you have any further questions. Please feel free to contact us and look forward to speaking with you again next quarter, how would I say goodbye.
Sure.
This does conclude our conference for today. Thank you for participating you may now.
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