Q3 2023 NaaS Technology Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the <unk> third quarter 2023 earnings Conference call. At this time, all participants are in a listen only mode.
Must advise you that this conference is being recorded.
Like to turn the conference over to your first speaker today, Ms. Cynthia Tan Senior IR director.
Director Thank you.
Please go ahead.
Thank you operator, Hello, everyone and welcome to La Quinta and he can be three earnings conference call the company's herself.
Issue earlier today and are posted online joining me on the call today are Ms <unk>, Wang Yang, our Chief Banking Officer and Mr. Allison.
And Chief Financial Officer, but todays agenda, Mr. Wang will provide an overview of our recent performance and highlights and Mr who will discuss our operating and financial results before we continue I refer you to our safe Harbor statement in the earnings press release, which applies to this call are forward looking statements also please.
Note that this fall.
Jason I S.
Initial measures.
Refer to our earnings release, which contains a reconciliation.
That's all.
Okay.
Finally, please note that unless otherwise stated all of them.
RMB terms I'll now turn the call over to our CEO.
Ms Kathy Guangdong Kathy Please go home.
Hello, everyone I'm not C O Cassie warm young it's my pleasure to share not good culture Hunter tranches, there unless we thought with all of you to discuss and to discuss our recent developments.
And the third culture of Huntington's history, our total revenues increased by five contracts and as such a 6% year over year to a ratio of one contract and it sounds you one mailing a M. B I will now address not much at all.
Let's go to ordinary shareholder now Youre at about 256, the program takes part compared to with the same quarter last year. The total extract volume transacted through our networks during the culture. It could spike sits at two 6% year over year, reaching one one.
So the 300 and it tastes great gigawatt hour.
It gets accounted for 21 plant, 80% of all charging volume collected through public projects in China during the temporary.
Since the beginning of time, they tried history NASA has undergone a fundamental shift in its revenue structure.
And the second a culture of 2023, the propulsion of offline and innovation so that its revenue exceeded 50% for the first time.
Reaching a suitcase, 3.4% in the third quarter revenue from E. P. C energy storage at the Oddest solutions accounted for 81% of the total revenue.
Yeah.
What does it all from our full year two tranches through revenue guidance to be between 500 million to this hard to the meeting M B and the way it's part of our full year plan to charge a small revenue to be between 2 billion to 3 billion I M. B a growth of two five times.
No. That's it's truthful me from our new and used so its company into a new energy outside operator.
And the third culture, not signed a 200 under full mailing a M. B I'm just storage alder, yeah. Our dishes, we want the beautiful Angie Karen and the low carbon supply chain construction project.
You can go global P waste storage chachi.
So L P benchmarking project to Florida Highway trucks.
Not the international business, it's 40 or a hutch.
Contributing such a chore car just 7% of our total images in the starch culture.
In October not to become one of the first batch of strategy I'm depresses opt in Hong Kong.
Oh face, but attracting tried to chase onto presses.
All September 22nd.
There's 10, both Fitch assigned it not as to E. S T and churches schools in China country by country in Asia at the fifth worldwide.
Oh October.
Countries, such nice John that you would not you just.
You'll not too.
Nations Global compact organization.
Well in bras or consult technology.
And data access.
And our open ecosystem.
It's commit too much to open these paves the way for our global initiative towards carbon neutrality.
We look forward to join hands with our partner.
Shoot or the walk our vision of important to work with their energy now.
Now I will turn our call to Alex our president and CFO for a closer look at our operating financial plummet.
Yeah.
Thank you Kathy Hello, everyone and thank you for joining our call today.
As Kathy mentioned, we delivered an excellent performance across all key operating and financial metrics in the third quarter.
Our top line growth was exceptional and we remain the industry leader in Chinas growing charging services market.
Maintaining fleet, we're expanding from a singular mobility connected connectivity business to a model that also monetize our digital analytics capabilities.
We're doing this by achieving a rapid expansion of our charging station operation and energy storage businesses.
Which will allow us to reach our goal of becoming a D D in temperatures.
Energy acid operation and management service provider in China and abroad.
In language all goodness expansion, we introduced a new revenue reporting structure in the third quarter.
Income from mobility connectivity and the self operated charging stations has been consolidated.
So this is robin.
Income from our Integra agents charging infrastructure.
D and energy storage now falls on the energy solutions revenue.
You can come from a third revenue stream.
Patricia do you put him in services and other services is doing reman and new initiatives.
To assist in this comparison, we have adjusted historical two accordingly.
We think these three revenue categories better describe all extended new LNG asset ecosystem and more clearly reflect the direction of our business.
For more information please.
Feel free to be fair to all entities issued earlier today.
You can see our business transition taking shape stellar third quarter close and we're pleased to be able to show them more visible profitability trajectory.
Our total revenues reached an all time high in the third quarter off on the $179 million.
The bulk of this rapid growth came from our energy solutions.
Which increased by six times quarter over quarter.
Accounting for 81% of our revenue in the third quarter.
This substantial growth is mainly attributable to the ongoing delivery of energy solution projects.
Renewable energy generation.
Energy management and storage solutions.
On a year over year basis, our financial efficiency.
Improved instead of quadrant.
Gross margin increased to 27% from 6% year over year.
And the <unk> gross profit increased by 28 fold.
Over a year as we started to react benefits from our extended Knowhow and it took a bit of juice and delivering and executing energy solution projects.
Yeah.
Total operating expenses decreased to RMB 285 home 3 million in the third quarter from RMB $359 1 million in the last quarter.
We are beginning to recognize the advantages from the economies of scale.
Unable to gain significant operating leverage.
During the third quarter, we substantially improved our operating spend as a percentage of revenue.
Our sales and marketing expense ratio dropped sharply to 19, 4% from 252% in the third quarter of 2022.
And 177%.
Second quarter of 2020.
As a percentage of revenues.
Australia is the expenses ratio declined substantially year over year to 63% from 95% in the second quarter of 2010 to two.
Research and development ratio also declined to 10% of our total revenues compared to 20.
28% in the same period last year.
Yeah.
Our net loss attributable to ordinary shareholders was RMB $366 9 million for the third quarter of 2023.
Compared with a loss of RMB 119, 1 million for the same period of 2022.
Well no no ifr. This net loss was RMB $175 7 million for the third quarter compared with RMB $96 5 million for the same period off 2022.
Net margin improved from negative 406% to negative 214%.
Whereas non <unk> net margin improved from negative 359% to negative 103%.
As we diligently manage our operating costs and work to narrow our losses were looking toward our long term prospects.
All explanation, though growth has come from our initiatives, both locally and internationally as we gain traction across all expanding business.
Our network continues to experience high growth in China.
In total chartering volume increased by 66, 6% year over year in the third quarter.
Reaching 1383 gigawatt hours.
The total number of orders rose by 58% year over year to nearly 59.2 million.
Furthermore, in terms of all assets under operation, we continue to carefully select high quality charging stations to add to our portfolio.
We are also making excellent headway with our energy storage initiatives propelling the girls and the maturation of T V storage charging station development.
By the end of the third quarter, we had already launched 43 integrity charging stations.
And then just storage covering cities, including Hangzhou, Guangzhou, Chongqing Wuhan Changsha.
On the other hand, our timely execution of the leading LNG storage charges smelting project and tailing the installation of 450 H D D apps through charge offs.
4200 kilowatts distributed PV system.
36, LNG storage and charging cabinets and two leading domestic heavy trucks.
Actually its Watson station.
This will showcase our integrity solution, coupled with the timely institution that continues to win new business.
On the international side, our recent acquisition of sign up hauler to broaden our reach in Hong Kong is already bearing fruits.
International revenue for the third quarter accounted for more than 32% of our total revenues compared with 22% in Q2.
Demonstrating our rapid progress and the strength of our acquisition strategy.
As all business graduate students they are attracting install support voiced is all momentum.
You can see this you know alliances there's always says that that's why I'm trying to construction back.
For example, CEB will provide us with the Integra insurance financial services support encompassing overseas M&A liquidity loans project loans.
<unk> loans and financings for global renewable energy asset investment and charging stations energy storage P V. Among others.
This will empower us to extend our global presence in the energy sector.
Thereby fostering green low carbon and the sustainable development in the imaging industry.
This recognition from our strategic partners is helping us advance the new energy sector and its underlying infrastructure as we work to expand our presence in the new energy globally.
Okay.
I'm also pleased to provide an update on our recent financial activities.
In July and September 2023, we issued USD 50 million in U S. Dollar 40 million convertible notes to Al MA partners.
As of today U S. Dollar 33 million has been converted into a D S highlighting our upward momentum there.
The remaining principal amount of the notes totaling $3 7 million.
We appreciate the trust I'll say all my autonomous.
There's a fuse our commitment to continued growth and success.
Looking ahead, we are on track to deliver our previously announced full year revenue guidance of between RMB 500 million and RMB 600 million.
Which is a five to six times increase from 2022.
Without I did visibility and new to US we would also like to introduce our guidance for 2024.
We currently expect full year 2020 for revenues to be between RMB 2 billion and RBC Julien.
In summary, we're making considerable progress in establishing us as a leading global provider of your energies assay in operations and management services.
We are broadening our one stop charging services advancing integrated energy systems, and leveraging our strategic acquisitions to increase our global footprint.
On top of a robust topline growth driven by both charging service and energy solutions. We also continue to drive a more favorable revenue mix with more high margin business.
I'll I'll take your margins are also improving rapidly benefiting from economies of scale and optimized operating cost.
Our margin expansion is a testament to our commitment to both financial efficiency and scale, we are achieving sustainable goes in the right way.
As we continue to grow our business, both in China and abroad.
Men dedicated to provide sustainable energy solutions.
We're exploring new opportunities for growth.
Industrial forward.
This concludes our prepared remarks for today.
Operator, we're now ready to take questions. Thank you.
Thank you if you wish 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 and if you aren't a speakerphone. Please pick up your handset to ask you a question for the benefit of all participants on today's call. If you wish to ask you a question to management.
In Chinese please immediately repeat your question in English. Thank you very much.
Our first question comes from Kelly sat with Jefferies. Please go ahead.
Oh Hello.
Great.
Congratulations on a strong third quarter results I have two questions. Firstly is about the revenue guidance you just mentioned, it's all done.
So can you share more color about.
About a driver on your energy solution business in China, and almost the overseas market.
Well, maybe introduce fine and it just does.
And of course, you used to call them the margin outlook. So can you share.
More color on your market improvement, so basically how keen to know how to forecast the margin trend.
Energy solution business going forward.
Yeah.
Okay. So I think a county those are two very good questions for your first question regarding energy solution business and disclose gross drivers.
Let's look at what he is doing right now so we have seen.
Significant contribution from energy solutions in Q3 out of the Q3 revenues the energy solutions has contributed.
Well $169 million, which is a year over year to 500% gross.
If we look at the drivers J, obviously three segments that we had a cat that you that business number one is what is called a U P. C. The UPC revenue driver is effectively we have the data advantage. We have in industrial know, how and we have a very strong customer base that will give us.
The capability to Butte, the complex projects and that will also give us the capability that we can weekend, we can give to our customers that we can peaks the right spot to be dose charging stations.
Number two is the energy storage for energy storage than your driver a J a sort of a twofold. The first one is we know that you see here, we have 300 H E contracting stations that we want to abuse the energy storage solution seen in Q3, so far we have.
<unk> delivered its 14th Street out of the 380, so the the lion's share of the contracted stations that.
Yes, it would be delivered should it be deleverage increased Q4 this year.
If we look at the medium term.
That we've picked 1800 and a T stations out of this 73000 stations I always connected to.
These 1000 and hunger and a cheap stations are good candidates for us to be the energy storage solutions, Inc. So we've already picked those stations there's already know where they are the next steps that we need to do in the meantime, he used to get those stations constructive and beat that.
And I'm sorry that you took in this energy storage solutions are viewed.
But that's for energy storage, Oh overseas I think a it's quite easy to see that the overseas remedy is already contributing.
Contributing since so two 2% of all overall in revenue.
In Q3 this year.
And we expect the overseas revenue.
To be about 40% of our 2020 for revenue.
If you look at the short term drivers are we know that some of them are in Santa Paula for example, we have a 17 million backlog that has already been secured and committed we just need to get them into the red in Q4.
We also know that it is a sign of how he's very quickly expanding into EV charging we have one three out of five contracts on their E. S. S. S, which is the government sponsored EV charging project.
We can also see clear synergy coming from Nast after the acquisition of Santa Paula We can see the financial support we can see that you'd be charging knowhow that has now been integrated into our into some phone calls on empower.
So I think no.
And although we can see clear growth momentum and very clear growth drivers are for the energy solution business.
For your second question regarding margin, you're absolutely right we have witnessed.
Good margin trends are in this quarter.
In Q3, 2023, we basically driving the margin improvement through two major levers. The first one is is revenue mix. The second one is operating leverage.
<unk> revenue mix in 2023 to see 81% revenues from energy solution.
Profitable imagine.
Energy storage business, if you take that as a as an example.
<unk> enjoys a EBITDA margin off a bit.
10% to 15%.
EBITDA margin applies to central power business.
So as we get more business in those lines are we tend to have a higher higher margin right.
The second thing is our operating leverage our total operating expense ratio has declined to C. C.
Differently from 385% in Q3, 2022% to 170% in Q3 2023.
So you said you're mixing those two together we think.
Well generally be seen gradually margin going forward and will be seen improving profitability in the next kind of couple of quarters.
Thank you.
Thank you.
Yeah.
Thank you. Your next question comes from Ethan do from C. O I see you say please go ahead.
Oh can you hear me.
Oh Wow.
That's all I have okay.
Yes.
Okay, Okay, Oh graduations on the excellent performance in the so called her and I have two question. This time on the first one is that are you just you're actually the 'twenty 'twenty four revenue guidance, which shows a significant increase compared to this year's guidance.
Oh could you explain how you achieve.
Two such rapid growth in countries and before August is the first question and the second one is about the overseas business. We all know that glass primacy acquire chat on chalk and so our work is a recent progress also oversee business and how would you predict the revenue contribution.
Oversee charging piles on power sales in 2023 and me for August is my two questions. Thank you.
Okay. Thank you you too are these are good questions.
So the first question is about 2020 for revenue guidance.
I just would like to take a step back and the caps b.
They're just set the stage right. So based on CIC reports for example, the public charging 10 days is expected to grow three times by 2030, and the public charging volume will be going to 25 times batches on the synergies and we are clearly still see maybe coming into the market at a rapid speed.
<unk>.
If you look at NASS Naas is China's largest EV charging network. It has 73000 charging stations covered which is about 50% market share has 768000 charges connected which is 42% of market share.
And has charged 1383 gigawatt hours of electricity in one quarter, which is about 201.8% market share.
And he's not kind of a capability. This is a company that has and then if you could kind of digi has a very strong big growing customer base and the user traffic.
And we are working very hard to move to the U S operation business, which is effectively a way to monetize our data and analytics customer base traffic and also the very well connected across my customer base are you.
China two are two to run all assay to more efficiently, but that is to sort of thing.
Now if we look at different segments. If you look at the charging station operation for example that I've already mentioned the largest an EV charging network I've already mentioned, our analytics and charging station base.
And also our professional operating team.
Our objective is to see a significant increase.
Chargers under management by end of 2023 and 2024.
To a number that is much bigger than what we have today.
Are these are these charges under management will be picked from our extensive network.
Charges would be picked from the 768000, that's a we are with country to conduct it too and.
And we are well on track to to reach that.
The chart on the management goal, because we have a number of projects as countries around the globe.
Well energy storage as I mentioned before briefly and Q Q3 until Christmas Eve only delivered 43 out of 380 contracted stations that.
That we've already signed.
In the immediate term for example in 2024, we plan to deliver a.
About 1500 stations are ways energy storage solutions as I mentioned before these are the stations that we are very very carefully picked from the 17000 stations out of the country connecting to through all the data advantage. We've screened for example.
Otherwise with the the the biggest chicken value price differences.
And we also selected those ones that have peak electricity saturation rate.
So these are distinctions now we are completely confident that once you put a tragic.
And then she started distribution you can make money right.
So what we plan to do in 2024 is to deliver an arrest a southern 500 stations now we've already picked.
The next segment is about overseas.
I mentioned before that we've already seen 32% revenue contribution by Santa Paula we aim to increase that to about 40% in Santa Paula and was out there as some other businesses that we acquire.
I've already mentioned the devoted to the attraction of Santa Paula.
Question, So I will not repeat myself for those segments and then you can look at the macro which is a very much a favorable macro and if you look at those three segments, we have clear.
Gross drivers. So I think we're confident that we can we can get to the guidance that we provided.
The next question are you doing something new which is about Oh. The expansion. So I think that's sort of a nation that my previous question, but I would like to probably highlight a little bit about Hong Kong Santa Paula.
As I said before when we acquired the company.
Been growing very well.
And it is very much profitable we are already seeing a which is a two three months. After the acquisition, we're already seeing a very strong EBITDA margin contribution from the company.
Do you think that margin can reach 15% for the ones that we are doing.
So I think for overseas expansion, what we're doing currently is really a replication of what was down was Hong Kong, Santa Paula which is to choose the right asset to buy it at the right price and also most importantly to integrity. It weighs on our overall business.
And provide synergy and capabilities as much as we can.
Okay.
Thank you. Your next question comes from Zoe sang at T. F Securities. Please go ahead.
Hello, This is Zoe from tinfoil.
All your accuser financial result was very impressive but based on your current of results you still need to achieve a significant revenue growth in Q4 can you share more color on how to achieve that.
That was my first question. The second question as I you previously disclosed a major contract in the energy storage business can you share some updates on the progress of that contract. Thank you.
Great. Thank you Joey.
So first question is about the Q4, so just to recap we delivered significant revenue growth and QC the Q3.
Revenue is $171 million or do you have seen which is a year over year growth of more than 500%.
But most importantly, if we do that by 171 million, we see September single month's revenue exceeding 100 million RMB.
So I believe that is a major step up.
In our growth trajectory.
And I believe we'd be able to stay and that's a journey.
Do you have any revenue.
Magnitude do you feel like Oh, there for the rest of our off Q4.
Now if you break that into business.
Yeah, I would just probably repeat some of the things I've said it before but I think those are useful.
In energy storage, we still have.
Well more and more than 300 contracts.
Stations to be deliberate and how we plan to deliver in Q4.
Incentive however, we have a clear 17 million backlog and when I say backlog I mean, those are the projects that have already been committed some of them. We've already started construction or just haven't finished yet.
And and we also as I said before winning three out of five projects are all contracts that we have under U S. S. You get a chance. This is a project that we know is that as I predicted that we know very well and we can deliver a fairly quickly within two months.
And even the PC business. We are we have a we would have disclosed before that we've won a RMB 67 million a one stop PV storage. So our project E N G.
Deliver on its part of that I think that's part of that that would be delivered in Q4.
And we're working closely maybe pizza place, we're working closely with some of the.
The other sort of a domestic local governments that want to viewed those are high tech charging stations.
They have more good news to come in that space.
Flooding.
The Chinese station operation business.
We what I can really is almost done and the surgeon panel legislation.
<unk>, Hubei, Jiangsu and chassis, which is a fairly distributed sample that we peaked.
We've achieved 10%, having one improvement after all operation.
But I think that that has proved that we have the capability that is that that's that that is driven from our oh holiday, they're kind of at a T cell and underserved communities and all operating team Knowhow.
We have we were approved through these pilots.
So what we aim to do is to a increase.
The increase in the number of stations under management, starting from Q4, this year, but definitely going into into 2024.
So to recap I think back to your question I think in every single segment, we have clear sort of drivers that we already have in hand that is within our control that we can deliver in Q4 this year.
Now for our energy storage I, just want to give some more details. So that people can understand what was what have we got the let me say, we signed the RMB $200 million, where some contract that has a contract to build our energy.
Doug solutions in 380 charging stations with 518 storage facilities of 580 boxes.
The total capacity of 130 megawatt hour.
And with 224 kilowatt hour per storage box.
So that's the sort of overview of the contract.
As I said, it before and so far we've delivered I'm sorry by the end of September which delivered 43 out of 380 <unk>.
Our stations.
And the team you know energy storage Department is working very hard to say and not to deliver the rest of the contracted stations.
I believe within this year there'll be able to deliver most of the stations.
Yes.
And using the same methodology we use.
Gone through the 773000 patients are we connected.
If I can give you a little bit more about all of our methodology regimes out 73000 stations, we use our model of all data driven motto 222 sort of future suite out of the 73000 stations, we've identified about 13000 stations from.
Cities with peak and value price difference exceeding zero appointing seven yeah.
My rule of thumb of Ah can.
Commercial visibility to do to advantage of storage that we further identified 1880 stations with peak electricity saturation exceeding 80%.
So usually to understand those out of the stations that have people come in during the peak peak hour that you don't want to peak.
The stations in the beauty and it just started when nobody comes out of Chicago.
So we've identified those stations basically commercially excellent station.
We expect to make good money when does the energy storage solutions are to be built.
So with those 1880 stations were basically covered.
The next 12.
12 to 18 months off of our pipeline and those other stations that we have are connected to and we have some level of control right. So that has helped us to give the confidence not tonight.
We have a clear pipeline to deliver such as plentiful.
Okay.
Thank you. Your next question comes from Alex Tomorrow at UBS. Please go ahead.
Okay.
Hello can you hear me.
Yep.
Okay. Thank you. Thank you for the opportunity for asking this question. My question is actually about your reclassification of the like the revenue Kent can we understand that actually the oh that the online business in the pack.
So classification, it's very much similar to the current charging service revenue, except that we have another kind of business model like a card full station operation model and my next question is Oh like further elaborate more on default a station operation model like what is the.
<unk> business model, yes, and how could it impact home you are like revenue and margin going forward. Thank you.
Thank you. Thank you Alex this is an excellent question because this is very important because most of us so to the easy way to understand the operating operation business model is that we basically operate these stations more efficiently than the current asset at all to see.
If you separate the delay.
Here's there's a delay or that for asset owners. So those are the people that have invested in assets and they own the assets and there is another layer on top of a shadow asset operators. Because these are the people like us that don't own assets, but we have capabilities unique capabilities that we can operate the assets.
Efficient manner.
And for US in this in the charging business. The operation has a lot to do.
With digital capabilities with analytics, and most importantly with pricing.
So what we what we have is we have the largest charging network. We have covered the most number of charges and we.
We've charged.
Large number of a large percentage of the market public charging market share.
The data that we could collect from the these are these charges in charge of China.
Charging stations, we could derive.
But the best sort of running a model for a particular charging station right and we could do we could we could get the right pricing for a charging station for a charger at a particular hour of a particular day, so that helps us to drive.
For the higher stay efficiency after charging stations and that has been improved by the the pilot projects that I just mentioned out of the 13 excuse me.
30th piloted stations in seven different 70 different provinces, we've managed to achieve a 10% of children born improvement after.
Our team to take over the operation.
That is achieved basically by having the identity capability right and the ability to understand the seasonality down to understand hour by hour charging volume change there.
And then the demand change and to basically forecasting in full costume and predict what's going to happen from a Chinese demand perspective.
As I said, we've already proved capabilities through the pilot projects.
Now if we look at the potential there is obviously huge potential we cover 73000 charging stations.
All candidates that we could.
Could peak back to two two to run the operation and what we do is we will just go through all day Tomorrow and I'll end it would be to go into too to find out the ones that have the kind of the highest potential for efficiency improvement and we will try to get those operating.
Right. If you like from the asset owners right. So that we can improve the efficiency and we can obviously generate revenue doesn't make money.
And I think the final thing to think about this is I mentioned 73000 charging stations right, but that is not a fixed number that number is growing very.
Very rapidly right as the macro market is growing.
I'm, both public charging in China is expected to grow 20 times.
By 2030, so we're talking about not just with our screening and going through the funnel that has 73000 stations to drill some wells, we're talking about a underlying macro market that is growing very rapidly at the same time. So I believe you know if you put those two things together this is a very.
<unk> opportunity to combine the macro growth and our unique capability, which we have accumulated over the past couple of years.
Thank you.
Thank you. Your next question comes from Sheila in U K. So securities. Please go ahead.
Oh, Hello can you hear me.
Hello.
Okay. Thank.
Thank you for the opportunity to ask analysts also available capital. My question is about must pass along.
I'm not sure if the China construction bank can you elaborate on how the I'm not sure it could.
Peacemas. Thank you.
Thank you. Thank you for your question that's once again very good question.
As a context, a NAS and its parent company didn't groups of antagonism.
It didn't have entered into a partnership with tenant concern construction bank, while the biggest banks in China to provide a credit line up to two five M. B a.
So you didn't come from us and this is not really.
And also your question on you were talking about other collaboration understandable I believe the partnership with China construction construction back could.
<unk> financial position in this fast growing okay.
It's growing very very fast.
Get financial support and especially their financials are quite some one off the biggest banks in China definitely helps.
It also helps to accelerate the energy transition and new energy of option value chain.
As you know you energy transition is a is it is it is a policy that is very well taken and Chinese government. So this is a partnership with China construction bank definitely helps to drive those.
The speed of adoption.
Adoption and.
And finally I think this is a mutually beneficial partnerships to empower more business partners.
We firmly believe we can win win situation.
In the energy space as we are facing is very unique opportunities that probably happens once in a lifetime one to ensure that all the partners that we work with industry ecosystem and get some benefit from us once a D D.
Yeah.
You can see some.
In February to help everyone to get some benefit right. So she worked with should you be unable us to two two to have this capability. If you had to to get more people on it.
Eugene system.
This is so we are all very excited about this partnership with China construction Bank and and we all feel very very proud that would have the support functions.
Okay.
Thank you that concludes our question and answer session I would like to turn the call back to the company for closing remarks. Thank you.
Thank you all for joining our call today, please feel free to contact us if you have any further questions Goodnight and goodbye.
Yeah.
Thank you that concludes today's conference call you may now disconnect your lines. Thank you.
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