Q4 2023 Dingdong (Cayman) Ltd Earnings Call

Good morning, and good evening, ladies and gentlemen, thank.

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited 4th Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Thank you for standing by and welcome to the team don't limited fourth quarter 2023 earnings Conference call.

At this time all participants are in a listen only mode.

Operator: Please note that this event is being recorded. I would now like to turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead.

Please note this event is being recorded.

I would now like to turn the conference over to the first speaker today, Nike Chen Director of Investor Relations. Please go ahead.

Nicky Zheng: Hello, everyone, and welcome to Dingdong's fourth quarter 2023 earnings call. With me today are Mr. Changlin Liang, our founder and the CEO, and Mr. Sun Wang, our CFO. You can refer to our first quarter 2023 financial results on our IR website at IR.100ME. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion.

Thank you.

Hello, everyone and welcome to <unk> fourth quarter 2023 earnings call.

With me today are Mr. Johnny Young our founder and the CEO.

And then Mr song Wang our CFO.

You can refer to our first quarter 2023 financial results.

That site.

Hi, Joe Anja.

You can also access a replay of this call.

Oh, that's tight when it becomes available a few hours after its conclusion.

For today's call management will go through their Paypal remarks, which will be followed by a question and answer session.

Nicky Zheng: For today's call, management will go through their prepared remarks, which will be followed by a question and answer session. Before we continue, I would like to refer you to our State Property Statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements. Please note that all numbers stated in the following management prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings press release and filings with the S.E.C. I will now turn the call to our first speaker today, the founder and CEO of Dingdong, Mr. Liang. Thank you, investors, analysts, and friends of Dingdong Cayman.

Before we continue I would like to refer you to our safe Harbor statement in our earnings press release.

Which also applies to your desktop.

We will may be making forward looking statements. Please note that all numbers stated in the following management prepared remarks are in RMB terms.

And we will discuss non-GAAP measures today.

Which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings press release.

And filings with the SEC.

I would now I will turn the call to your asbestos be here today, the founder and CEO of being done Mr. Liang.

Cause Yeah go ahead go ahead.

Nicky Zheng: Welcome to the 2023 Q4 Financial Analysis Conference of Dingdong Cayman. Hello everyone, and welcome to Dingdong's fourth quarter 2023 earnings call. First of all, I would like to briefly review Dingdong Cayman's Q4 2023 and the overall performance of the year. As efficiency is prioritized and the scale of development strategy continues to advance, we have not only achieved profits under the long gap of five consecutive quarters but also achieved the first quarter profit under the long gap standard. In Q4, Dingdong Cayman achieved a revenue of 4.9 billion yuan and a GNV of 5.3 billion yuan. The net profit rate was raised by 30.6% compared to the previous year, and the net cash flow was reduced to 1.2 billion yuan. Under the long gap standard, the net profit rate is 0.3%. Overall, the revenue is 199.7 billion yuan, the GNV is 219.7 billion yuan, and the net profit rate is 30.7%. Under the long gap standard, the net profit rate is 0.2%.

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Hello, everyone and welcome to <unk> fourth quarter 2023 earnings call.

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Alright, let me give you a brief overview of kingdoms performance in Q4 and for the full year 2023.

Liang Changlin: First, let me give you a brief overview of Dingdong's performance in Q4 and for the full year 2023. As we consistently implemented our development strategy of efficiency first with due consideration of scale, we not only achieved non-gap profitability for the fifth consecutive quarter but also marked our first full year of non-gap profitability. In Q4, we generated revenue of 4.99 billion RMB with a Gross Merchandise Volume, or GMV, of 5.53 billion RMB. Our gross profit margin increased to 30.6% sequentially, with a net operating cash inflow of 120 million RMB. The non-GADMET profit margin was 0.3%.

We consistently implement our development strategy of efficiencies bearish with due consideration of scale, we not only achieved non-GAAP profitability for the fifth consecutive quarter, but also marks our first full year of non-GAAP profitability.

In Q4, we generated revenue of $4 99 billion or a b with a gross merchandise volume or G. N V. A 5.53 billion RMB.

Gross profit margin increased to 36% sequentially with net operating cash inflow of 120 million RMB.

Our non-GAAP net profit margin was 0.3%.

Liang Changlin: For the full year, our revenue was 19.97 billion RMB, with a DMV of 21.97 billion RMB. Our gross profit margin was 30.7%, and our non-gap net profit margin was 0.2%. This quarter, our GNV fell by the same rate.

For the full year, our revenue was $19 97 billion or a b with a G. N V of $21 96, and 97 billion RMB.

Our gross profit margin was 37% and our non-GAAP net profit margin was 0.2%.

Liang Changlin: The main reason is that in the same period of 2022, with the pandemic, consumer demand increased, and orders increased. At the same time, we were also affected by the shutdown of some cities and the shutdown operations in 2023. Although in 2023, the CPI price, such as for pork and vegetables, continued to decline throughout the year, it benefited from the continuous optimization of our product structure and the deepening of commodity profits. In a large environment where consumer demand has shrunk, the CPI price throughout the year was stable at 72.1 yuan.

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Liang Changlin: Although it fell in 2022, which was more severe than the epidemic, it increased by 23% in 2021 compared to 2023. PMV declined on a year-over-year basis in the fourth quarter, primarily due to the high base effect during the same period of 2022 when continuing pandemic restrictions drove a surge in order volumes. It was also partly caused by the suspension of operations in some cities and stations in 2023.

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T M D declined on a year over year basis in the fourth quarter, primarily due to the high base effect. During the same period of 2022, when continuing pandemic restrictions drove a surge in order volumes. It was also partly caused by the suspension of operations in some cities.

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Liang Changlin: Nevertheless, we have continued to optimize our commodity structure and enhance our product development capabilities to mitigate the impact of declining consumer prices for certain commodities, such as pork and vegetables, throughout 2023. As a result, the Average Order Value, or ALV, remained stable at 72.1 RMB in Q4. Despite declining year over year, the ALV was still 23% higher than in the same period of 2021., 40%, 4.5%,, 2017, 5.8, The number of members this quarter has increased by 1.9% The number of green card members who contributed to the overall order volume and the ratio of GMV is steadily increasing. Thank you very much to our loyal users for their We will continue to enhance product and service innovation and continue to serve our new and old users.

Nevertheless, we have continued to optimize our commodity structure and enhance our product development capabilities to mitigate the impact of declining consumer prices sort of certain commodities, such as pork and vegetables throughout 2023.

As a result, the average order value or a L. V remains stable at 72.1 RMB in Q4.

Despite declining year over year D. O V was still 23% higher than in the same period of 2021.

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During the fourth quarter kingdoms users placed over four orders per month or year over year increase of four 5%.

Liang Changlin: During the fourth quarter, Dingdong's users placed over four orders per month, a year-over-year increase of 4.5%. Notably, users who were onboarded in 2017 increased their purchasing frequency sequentially and year over year to 5.8 times per month. Additionally, Q4 saw a 1.9% sequential increase in the number of members who place orders per month. Additionally, members' contributions to the order volume and TMV also increased. We thank our loyal users for their trust in Dingdong's products and services.

Notably users who were on boarded in 2017 increased purchasing frequency sequentially and year over year to five 8.8 times per month.

Additionally, Q4 saw a one 9% sequential increase in the number of members who placed orders per month.

Members contributions to the order volume N G. N V also increased.

We thank our loyal users for their trust in doing those products and services, we're committed to innovating our offerings to better serve new and existing users.

Liang Changlin: We're committed to innovating our offerings to better serve new and existing users. During the whole year of 2023, we have made good progress at the new business level and achieved a net profit of 219.7 billion yuan. Although it was affected by the decline in online consumption after the epidemic and the adjustment of our business model, compared with 2022, there was a decline, but compared with 2021, there was great growth. In the core Huadong market, since 2021, the overall scale has achieved a net compound growth of 10% and a net compound growth of 13.5% in the same year. The overall share price of the company increased from 58.6 yuan in 2021 to 72.1 yuan in 2023. The monthly order frequency increased from 3.74 yuan in 2021 to 4.0 yuan in 2023.

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We made significant progress at the operational level during 2023, despite the decline in online consumption post pandemic and the operational adjustments we undertook.

Liang Changlin: We made significant progress at the operational level during 2023, despite the decline in online consumption post-pandemic and operational adjustments we undertook. Our 4-year GMV declined slightly year-over-year to $21.97 billion, but it grew substantially from 2021. Specifically, when compared to 2021, Toho GMV in our core East China market grew at a staggering CAGR of 10% and 13.5% on a same-store basis. The AOV also increased from 58.6 RMB in 2021 to 72.1 RMB in 2023. Additionally, the average monthly order frequency increased from 3.7 orders per month in 2021 to 4 orders per month in 2023. Dingdong Cayman has also achieved remarkable results in the construction of commodity power.

Our full year DNV declined slightly year over year to 20 197 billion, but grew substantially from 2021.

Specifically when compared to 2021 total G M D and our core East China market grew at a staggering CAGR of 10% and 13, 5% on a same store basis.

D. O V also increased from $58 six RMB in 2021 to $72 one RMB in 'twenty to 'twenty three.

Additionally, the average monthly order frequency increased from 3.7 orders per month in 2021 Q4 orders per month in 2023.

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Liang Changlin: The overall penetration rate of GMV, our free-branded product, will reach its peak in 2023. The first breakthrough in Q4 was 20%; now it's 21.1%, which is 3.1% higher than the same period last year. The user penetration rate is now 73.6%, which is 1.6% higher than the same period last year.

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Liang Changlin: The free brand C&V penetration rate of non-fresh food has reached 34.3%, which is 7.7% higher than the same period last year. Dingdong has made remarkable progress in building its product development capabilities. In Q4, our private label products accounted for more than 20% of total GMB for the first time, hitting 21.1%, a significant year-over-year increase of 3.1 percentage points. Moreover, the user penetration rate of our private label products also increased by 1.6 percentage points year over year, reaching an outstanding 73.6%. Notably, for non-fresh grocery categories, including prepared meals, the GMV contribution from our private label products has skyrocketed to 34.3 percent, a striking year-over-year increase of 7.7 percentage points. We have always adhered to the high-efficiency sense of user demand in the field of freshness and food, cultivating a successful batch of free brands and paid products, forming a unique brand evidence, establishing a consumer mentality, For more than three years, we have successfully operated free brands in three major categories, such as pre-made dishes, pork, and bean products.

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He has made remarkable progress in building its product development capabilities in Q4, our private label products accounted for more than 20% of total G. M. D. For the first time, hitting 21, 1% a significant year over year increase of three one percentage points.

Moreover, the user penetration rate of our private label products also increased by one six percentage points year over year, reaching an outstanding 73, 6%.

Notably for non fresh grocery categories, including preparing meals. The G. M. P contribution from our private label products has skyrocketed to 34, 3%.

Striking year over year increase of seven seven percentage points.

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Liang Changlin: In 2023, the survival rate of these three categories of free brands was more than 50%. We remain committed to providing our customers with fresh and high-quality groceries and food products. We're quick to identify and respond to the changing needs of our users, which has created opportunities for us to launch several popular and highly successful private label products. As a result, we have built a unique brand portfolio that has earned the trust and loyalty of our customers. Over the past few years, we have successfully launched private label products across three major categories, prepared meals, pork, and soy products. And these three categories of private labels penetrated over 50% of GNV in 2023. These successful brands include 1. The main home-cooked dish is from a Japanese brand, Chai Changqing. 23 years ago, it was sold for 8.4 billion yuan. It grew 43% compared to 2022 In the 4th quarter, the number of users of Yuejun Fugou reached 37% Let me share some examples. The first is Tai Chang Ting, a private label product specializing in prepared home-cooked meals.

We remain committed to providing our customers with fresh and high quality grocery and food products were quick to identify and respond to changing case about users, which has created opportunities for us to launch several popular and highly successful private label products as a result.

We have built a unique brand portfolio that has earned the trust and loyalty of our customers.

Over the past few years, we have successfully.

Launched private label products across three major categories.

Meals pork and soy products in these three categories of private labels penetrated over 50% of DMV in 2023.

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Let me share. Some examples first is tight hunting a private label products specializing in prepared home cooked meals in 2023 P. M V totaled approximately 840 million or and be a significant increase of 43% from 2022.

Liang Changlin: In 2023, GMV totaled approximately 840 million RMB, a significant increase of 43% from 2022. In the fourth quarter of 2023, the average number of monthly repurchasing users reached 37%, showcasing the brand's popularity among its customers. Second, the number of conscientious soldiers in Myanmar decreased by 500 million in 2023, which is 19% more than the previous year.

In the fourth quarter of 2023, the average number of monthly repackaging users reached 37% showcasing the brand's popularity among its customers.

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Liang Changlin: In the fourth quarter, the number of soldiers who joined the army increased by nearly 40%. Second is Good Craftman Noodles, which specializes in pastries and had a recorded GMV of approximately 500 million RMB in 2023, an increase of 19% from 2022, with an average monthly repurchase rate of nearly 40% in the fourth quarter. Three, Zimai Yitian's daily entry brand is the first brand we established. The 23-year-old GMV is 300 million yuan and has increased by 7% with a four-level monthly service rate of 32%. Third, our oldest brand, Fresh Everyday Pork, which has a shelf life of only one day. In 2023, it drove GMV of approximately 300 million RMB, an increase of 7% from 2022, with an average monthly repurchase rate of 32% in the fourth quarter. 4. At the same time, we focus on black pork, which is a representative of the black pork brand created by the Black Diamond family.

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Second is good craftsman noodles, which specializes in pastries and is a quiet G. N V of approximately 500 million RMB in 2023, an increase of 19% from 2020, Q with an average monthly repurchase rate of nearly 40% in the fourth quarter.

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Third our oldest brand fresh everyday park, which has a shelf life of only one day in 2023. It drove G. M. D of approximately 300 million RMB, an increase of 7% from 2022.

Average monthly repurchase rate of 32% in the fourth quarter.

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Liang Changlin: The performance is also very eye-catching, 23.7 billion yuan, 2.3 billion yuan, 68% increase in the same ratio, and more than 36% increase in the 4th quarter monthly service rate. We also launched a specialty black pork brand called Black Diamond Family, which was well received by consumers. GMV in 2023 reached around 230 million RMB, a 68% increase from 2022. In the fourth quarter, its average monthly repurchase rate exceeded 36%. 5.

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We also launched a specialty black pork brand, Paul Black Diamond family, which was well received by consumers.

G N V in 2023 which are around 210 million RMB, 68% increase from 2022.

In the fourth quarter at average monthly repurchase rate exceeded 36%.

Liang Changlin: Fighters with Fighters Brand, which is a fighting game brand, was launched at the end of 2021. In more than two years, it has quickly taken over the heart of the market. The total annual GME has broken through 250 million yuan and has increased by 24% compared to the previous year. The 4th quarter monthly revision rate is more than 41%. Finally, our You Dou Zhi brand, launched in late 2021, is dedicated to producing soy products.

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Finally, our you'll go to brand launch in late 2021 is dedicated to producing soy products over the past few years. It has gained significant popularity among consumers is an annual G. N V, surpassing 215 million RMB representing.

Liang Changlin: Over the past two years, it has gained significant popularity among consumers, with an annual GNV surpassing 250 million RMB, representing a year-over-year increase of 24%. In the fourth quarter, its average monthly repurchase rate exceeded 41%. At the same time, in 2023, we also put our free-brand and free-supply goods on the B-site of Dingdong Buying and Selling platform to sell and directly compete with other products in the market. In a year, the sales volume reached about 500 million yuan and achieved good results, which proved the potential of our free-brand and free-supply ability. In the future, we will continue to bring more high-quality and low-priced goods to consumers in the market. In 2023, we started selling our private labels and supply chain products through external 2B channels, where they began competing directly with other products.

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In 2023 we started selling our private labels and supply chain products through external to be channels, where they began competing directly with other products in just one year, we generated around 500 million on b cells to external channels, which I believe.

Liang Changlin: In just one year, we generated around 500 million RMB in sales through external channels, which I believe showcases the strength of our brand and supply chain. Moving forward, we aim to continue delivering high quality and affordable products to consumers and markets. In addition to the recognition from consumers, we have also gained industry recognition in the field of freshness and food research and development. At the 7th PLF Gold Star Award, we are very proud to present to you the award of the year. We won 13 awards, including 11 professional product awards, a professional team award, and an excellent organizer award. The awards included bean products, Yuzhicai, fruit, breast milk drinks, baking, and many other products.

Okay says the strength of our brand and supply chain moving.

Moving forward, we aim to continue delivering high quality and affordable products to consumers in the market.

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Liang Changlin: At the same time, in the selection for the 3rd Jinshi Award, the Rui Brand Grand Prize, Cai Changqing and Dingdong Wang Baicai from Yuzhicai's Free Brand Division won over 300 brands, about 1,300 works, and more than 100 judges and more than 20,000 consumers. They successfully won 3 brands. Our products have received widespread consumer and industry recognition in fresh groceries and food product R&D. We won 13 awards at the 7th PLF Go Start Awards, including 11 Outstanding Product Awards, 1 Outstanding Team Award, and 1 Outstanding Trader Award for our award-winning products across various categories such as soy products, prepared meals, fruit, dairy, beverages, baked goods, and more. At the 3rd Golden Power Awards, Shop Brand Awards, our prepared meal private labels Cai Chongqing and Dingdong Top Dish stood out from a highly competitive market of over 300 participating brands and approximately 1,300 participating products by securing three awards. The awards were based on evaluations by over 100 judges and 20,000 consumers.

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Our products have received widespread consumer and industry recognition in fresh groceries and food product R&D.

We won 13 awards at the second P. L. S go sign awards, including 11 Outstanding Product Awards, one outstanding team Award and one absent any trader award.

Our award winning products and across various categories, such as soy products preparing meals food dairy beverages baked goods and more.

At the Golden Power Award Shop brand award, our prepared meal private labels sage hunting and Ding-dong top dish stood out from a highly competitive market of over 300 participating brands and approximately 1300 participating product by six.

During three awards. The awards was based on the evaluations by over 100 judges and 20000 consumers.

Liang Changlin: At the same time, we also achieved consecutive non-gap profit for the first time, which is very meaningful for Dingdong Grocery and our industry. We achieved full-year non-gap profitability for the first time in 2023, a critical milestone for both Dingdong and the industry. First, it shows that we have gone through a difficult period.

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We achieved full year non-GAAP profitability for the first time in 2023, a critical milestone for Boston dome and the industry.

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Liang Changlin: Earlier, due to the adjustment of the macroeconomic environment and the change in the economic pattern, the public asked questions and worried about Dingdong Cayman's survival. This year's results have shown that we have survived firmly. Second, Dingdong Cayman's combat ability and rapid reaction ability have been verified again. When there is a major change in society, many of the abilities and effective methods pursued in the past may not continue to be effective. And rapid reaction ability and vulnerability are the basic abilities to survive.

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He shot this reflect how excuse me how we have successfully navigated a highly challenging macro economic and competitive environment in which many raised doubts about the company's sustainability.

Liang Changlin: We will lead Dingdong Cayman to continue to succeed in a diverse business environment. Third, Dingdong Cayman is the leading company in this industry. It is also the only profitable company at present. This proves that only doing difficult things firmly, doing heavy things, and doing the right thing is the right way in the world.

Liang Changlin: Fourth, after solving the problem of survival, Dingdong Cayman will have the ability, energy, and resources to return to the track of growth in 2024. To start, this reflects how, excuse me, we have successfully navigated a highly challenging macroeconomic and competitive environment in which many raised doubts about the company's sustainability. Second, it reflects our outstanding corporate flexibility and adaptability. With the market changing rapidly, these attributes will remain critical to our long-term sustainability. Third, it makes us the first among many in the sector to achieve profitability. Getting here was a long and difficult journey, but we stuck to our principles and vision.

It reflects our outstanding corporate flexibility and adaptability.

But the market changing rapidly these attributes will remain critical to our long term sustainability.

Sorry, It makes us the first among many in the sector to achieve profitability.

Getting here it was a long and difficult journey, but we stuck to our principles and vision.

Lastly, having a teens profitability, we're looking confidently to the future as we focus on maintaining sustainable long term growth.

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Liang Changlin: Lastly, having attained profitability, or looking confidently to the future as we focus on maintaining sustainable long-term growth. Finally, let's take a look at the situation in the first quarter of 2024 and the whole year of 2024. We are confident that the GDP of 2024 can return to the growth track and continue to achieve profits under the non-GAAP framework on this basis. After the cost of Q1 2024, which was spent on the first quarter, we can still achieve profits under the non-GAAP framework. Continuous profits under the non-GAAP framework continue to confirm the company's ability to survive in the current environment and provide sufficient ammunition for future progress. That's all for my speech. Thank you.

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Going forward, we're confident that allergy N V will regain growth momentum in 2024 and are confident that we will be able to maintain non-GAAP profitability once again.

Even after factoring in the costs and expenses incurred by staying open during the Chinese new year holiday, we expect to be profitable on a non-GAAP basis during the first quarter of 2024.

Song Wang: Next, let's welcome CFO Wang Song to introduce the company's financial situation. Going forward, we're confident that our GMV will regain growth momentum in 2024 and are confident that we will be able to maintain non-gap profitability once again. Even after factoring in the costs and expenses incurred by staying open during the Chinese New Year holiday, we expect to be profitable on a non-gap basis during the first quarter of 2024. Maintaining profitability in the current environment highlights the viability of our business model and provides us with additional resources to fuel our future development. Thank you all for listening.

Maintaining profitability in the current environment highlights the viability of our business model and provides us with additional resources to fuel our future development.

You all for listening now I would like to invite our CFO wants them to go over the company's financials.

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Thank you Mr Lal and Hello, everyone before I review, our financial performance. Please note that all figures are in RMB.

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Song Wang: Now, I would like to invite our CFO, Wang Song, to go over the company's financials. Thank you, Mr. Liang. Hello, everyone.

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Song Wang: Before I introduce our financial situation to you, I would like to explain that all our data is based on RMB. Thank you, Mr. Liang. And hello, everyone.

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Song Wang: Before I review our financial performance, please note that all our figures are in yuan. In 2023, Dingdong Cayman achieved a GNV of 219.7 billion yuan and a revenue of 199.7 billion yuan. The net profit margin is 0.2%, which is 2.6% better than last year. We have fulfilled our promise and completed the net profit margin target for the year. Since Q3 2021, we have established a strategic approach that prioritizes efficiency and ensures scale. We have worked hard for more than two years.

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In 2023 Kingdom generated G M. B of $21 97 billion, a beat revenue of $19 97 billion, a b and non-GAAP net profit margin of 0.2% an improvement of two six percentage points when compared to last.

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We successfully met our targets and achieved full year non-GAAP profitability.

Song Wang: In 2021, our net profit margin is expected to increase from 30.4% to 0.2% year-on-year. In 2023, Dingdong generated GMB of 21.97 billion RMB, revenue of 19.97 billion RMB, and a non-net profit margin of 0.2%, an improvement of 2.6 percentage points when compared to last year. We successfully met our target and achieved full-year non-debt profitability. Our efficiency first, with due consideration of the scale strategy, which we began implementing in Q3 of 2021, has paid off. After two years of hard work, we are proud to have moved from a non-gap annual loss margin of 80.4% in 2021 to a non-gap annual profit margin of 0.2% in 2023. At the same time, in 2023 Q4, Dingdong Cayman achieved a revenue of 499.9 billion yuan, a 0.3% NAGAP revenue, and 1.2 billion yuan of operating cash flow revenue.

Our efficiency first with due consideration of scale strategy would you be began implemented in Q3 of 2021 has paid off.

After two years of hard work, we are proud to have moved from a non-GAAP annual lost margin.

84% in 2021 to a non-GAAP annual profit margin of 0.2% in 2023.

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In Q4 of 2023 tingle achieved revenue of $4 99 billion or be in non-GAAP net profit margin of 0.3% and a net operating cash inflow of 120 million RMB.

We have achieved non-GAAP profitability for five consecutive quarters since Q4 of 2022.

Song Wang: Since 2022 Q4, we have achieved a profit for 5 consecutive quarters of NAGAP, and after 3 quarters, we have again achieved a revenue of operating cash flow. At the same time, at the end of 2023, after Q2's short-term net profit, our actual net profit is 2.1 billion yuan, which is a competitive increase for the second consecutive quarter. In Q4 of 2023, Dingdong achieved a revenue of 4.99 billion RMB, a non-gap net profit margin of 0.3%, and a net operating cash inflow of 120 million RMB.

Additionally, we once again to teach net profit.

Net operating cash inflow.

At the end of 2023 after deducting the bounds of short term borrowings our actual our actual cellphone fund balance was 2.01 billion I'd be a net increase for the second consecutive quarter.

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Song Wang: We have achieved non-gap profitability for five consecutive quarters since Q4 of 2022. Additionally, we once again achieved net operating cash inflow. At the end of 2023, after deducting the balance of short-term borrowings, our actual self-owned fund balance was 2.01 billion RMB, a net increase for the second consecutive quarter.

Over the past few years, we have achieved great success by prioritizing efficiency, while considering the scale of operations.

Our success has enabled us to overcome challenging times and establish ourselves.

Many in the market.

We have ample resources available to resume our growth trajectory.

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Song Wang: In the past few years, we have consistently maintained a high level of efficiency and achievement. This shows that we have survived the difficult times. We also have enough ammunition to return to the track of growth.

Song Wang: Over the past few years, we have achieved great success by prioritizing efficiency while considering the scale of our operations. This success has enabled us to overcome challenging times and establish ourselves firmly in the market. We have ample resources available to resume our growth trajectory. Next, let's take a look at Q4's specific financial situation. Q4's revenue was 49.9 billion yuan. It was affected by the high rate of the Ebola epidemic in 2022 and the adjustment of operating costs, which fell by 19.5%.

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Next let's review the financial performance of Q4 in detail.

Revenue for the quarter was 4.99 billion on be down by 19, 5% year over year, mainly due to the high base effect created by the pandemic restrictions during the same period last year.

This suspension of operations in some cities and stations.

However, it's important to note that regions, such as junk food and drink young provinces have performed exceptionally well despite the challenging environment.

Song Wang: It is worth mentioning that our Jiangsu and Zhejiang regions have seen a sharp rise in history. In 2023, the GMA and order volume of Jiangsu and Zhejiang provinces achieved positive growth of more than 8%. Next, let's review the financial performance of Q4 in detail. Revenue for the quarter was 4.99 billion RMB, down by 19.5% year-over-year, mainly due to the high base effect created by the pandemic restrictions during the same period last year and the suspension of operations in some cities and stations.

So G M D and order volume in these provinces grew by over 8% year over year throughout 2023.

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Song Wang: However, it's important to note that regions such as Jiangsu and Zhejiang provinces have performed exceptionally well despite the challenging environment. GMV and order volume in these provinces grew by over 8% year-over-year throughout 2023. Q4's profit margin is 30.6%, which is 2.3% lower than last year. At a time when consumers are becoming more rational, we will continue to provide consumers with higher values so that they can buy at a low price and eat with ease. At the same time, we will also use the advantages of supply chain and commodity power to extend the scene of eating outside the dining table, break the category circle, and vigorously develop free brands to create head-to-head products, and continue to manage long-term low-priced products to improve the efficiency of the supply chain. In Q4, our full-chain loss rate was 1.3%, which was 0.4% lower than last year.

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In Q4, our gross profit margin was 36% a decrease of two three percentage points from the same period last year.

With consumers, reducing their spending well working to entice them to our platform by offering added benefits, while maintaining a reasonable gross profit margin.

Moving forward, we will focus on providing consumers with more value. So that he can buy affordable and quality products without any worries.

We also plan to explore new food consumption scenarios beyond the dining table.

We're leveraging our supply chain and product development capabilities to create private label and that's M products, while also carefully managing slow moving commodities to improve supply chain efficiency.

Song Wang: In Q4, our gross profit margin was 30.6%, a decrease of 2.3 percentage points from the same period last year. With consumers reducing their spending, we're working to entice them to our platform by offering added benefits while maintaining a reasonable gross profit margin. Moving forward, we'll focus on providing consumers with more value so that they can buy affordable and quality products without any worries. We also plan to explore new food consumption scenarios beyond the dining table.

It's important to note that all supply chain lost me with one 3% in Q4, an improvement of 0.4 percentage points compared to the same period.

Last year.

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Song Wang: We're leveraging our supply chain and product development capabilities to create private label and best-selling products, while also carefully managing slow-moving commodities to improve supply chain efficiency. It's important to note that our supply chain loss rate was 1.3% in Q4, an improvement of 0.4% compared to the same period last year. Q4's travel expenses were 23.6%, which is 0.5% better than last year. In 2023, we successfully completed the optimization of the flight center and cabin network layout. Q4's large-cabin travel expenses were 1.0% better than last year, which is 1.8% lower than last year. At the same time, we have increased our service capacity further, and we have actively increased the investment in temporary cabin travel expenses. In the fourth quarter of 2023, the actual travel time for a single trip was 36 minutes, which is two minutes faster than in the third quarter. Overall, the actual travel time for a single trip is within 38 minutes.

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Q4 fulfillment expense ratio improved by 0.5 percentage points year over year to 23, 6%.

Throughout 2020 to me, we implemented various optimization measures for our network of regional processing centers, which resulted in a one and one eight percentage points year over year decline in fulfillment expense ratio in Q4 and full year 2023, respectively.

Additionally, we increased our investment in frontline fulfillment stations, our efficiency to enhance.

Our service capabilities as a result, we reduced offer for them in time to rush orders 236 minutes during the quarter two minutes faster than in Q3.

Throughout the year, you mean, even me maintain rush order fulfillment times with two women 38 minutes in 'twenty 'twenty four we plan to reduce costs and increase the efficiency upfront microfilament stations to further operational assignment such as optimizing transportation capacity.

Song Wang: In 2024, we will optimize the transport structure, upgrade the travel system, reduce the number of cabins, and refine the operation of the front cabin energy saving card, which will reduce the cost of the front cabin. Q4 fulfillment expense ratio improved by 0.5 percentage point year over year to 23.6%. Throughout 2023, we implemented various optimization measures for our network of regional processing centers, which resulted in a 1 and 1.8 percentage point year-over-year decline in fulfillment expense ratio in Q4 and in full year 2023, respectively. Additionally, we increased our investment in frontline performing stations efficiency to enhance our service capabilities. As a result, we reduced our fulfillment time for rush orders to 36 minutes during the quarter, two minutes faster than Q3. Throughout the year, we maintain rush order fulfillment times to within 38 minutes.

E rate case iterative upgrades to office and it system, a reduction of packaging consumables and implementation of energy conservation measures.

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Selling and marketing expense ratio and so for us to.

Per cent, a 0.5 percentage point year over year as mentioned, we plan to allocate additional resources between towards our marketing in 2024 due to our strong financial performance at sufficient cash reserves.

Song Wang: In 2024, we plan to reduce costs and increase the efficiency of frontline fulfillment stations through further operational refinement, such as optimizing transportation capacity, iterative upgrades to our fulfillment system, reduction of packaging consumables, and implementation of an energy conservation and emissions reduction policy in frontline fulfillment stations. Twinset's turnover rate is 2%, which is 0.5% higher than last year. As I said before, with excellent financial performance and sufficient cash reserves, we will increase our investment in marketing in 2024. The selling and marketing expense ratio in Q4 was 2%, up 0.5 percentage points year-over-year.

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General and administrative expense ratio in Q4 improved to one 9% 0.5 percentage point from the same period last year.

E R&D expense ratio improved to three 8% up 0.3 percentage points from the same period last year.

As always we remain committed to investing food research agricultural technology and data algorithms.

Song Wang: As mentioned, we plan to allocate additional resources towards marketing in 2024 due to our strong financial performance and sufficient cash reserves. The management cost of Q4 has been optimized by 0.5% to 1.9% in the same period last year. The cost of R&D has been optimized by 0.3% to 3.8% in the same period last year.

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In Q4, 2023, we achieved a non-GAAP net profit margin of 0.3% our fifth consecutive quarter of non-GAAP profitability.

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Song Wang: We will continue to invest in food R&D, agricultural technology, and technical data algorithms as before. The General and Administrative Expense Ratio in Q4 improved to 1.9%, up 0.5% from the same period last year. Additionally, the R&D Expense Ratio improved to 3.8%, up 0.3% from the same period last year. As always, we remain committed to investing in food research, agricultural technology, and data algorithms. In the fourth quarter of 2023, we achieved a net profit of 0.3% under the Nangartha model. This is the fifth consecutive quarter in which we have maintained a net profit under the Nangartha model. Moreover, into for 2023, we achieved a non-gap net profit margin of 0.3 percent, our fifth consecutive quarter of non-gap profitability. Q4.

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We generated a positive operating cash inflow of 120 million RMB in the fourth quarter.

That's not the end of Q4, the total balance of cash and cash equivalents short term restricted cash and short term investments was 5.31 billion R. B.

After deducting the balance of short term borrowings we have ample cash on our balance sheet with 2.01 billion RMB.

I would like to update you on how we could during the Chinese new year.

Song Wang: We have realized the positive effect of the operating cash flow. Operating cash flow revenue is 1.2 billion yuan. After the end of the 4th quarter, cash and cash transactions, short-term limited funds, and short-term investment balance were 5.3 billion yuan. After deducting the short-term loan balance, our actual free funds balance is 2.1 billion yuan.

On February 24th which was the Lenten Festival, we achieved E. G M D of more than 100 million RMB in just one day.

Our highest single day record post pandemic.

Additionally between the Chinese New year's Eve and mentoring festival on the same store level. Our overall order volume increased by 6% year over year and G N V by 5%.

Song Wang: Finally, I'd like to update you on our performance during the Spring Festival. On February 24, the Lantern Festival, we sold more than 100 million yuan in a single day, which is the highest level in a single day after the pandemic. Compared to the same electricity data at the Lantern Festival, the unit volume increased by 6%, and the GNV increased by 5%.

East China would have only increased by 9% year over year and G. M D by 7%.

Song Wang: The unit volume in the Huazhong area increased by 9%, and the GNV increased by 7%. Considering that during the Spring Festival holiday this year, the number of residents returning to their hometowns increased significantly, the performance above is even more remarkable, which generated a positive operating cash inflow of 120 million RMB in the fourth quarter. As of the end of Q4, the total balance of all cash and cash equivalents, short-term restricted cash, and short-term investment was 5.31 billion RMB.

Worth noting that this performance is even more impressive considering that during the Chinese new year, there were significantly more outbound residents from Jiangsu Zhejiang and Shanghai.

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For 'twenty 'twenty four our primary focus will be to maintain our high quality services and deliver products that offer the best cost effectiveness and quality ratio to our valued customers.

Song Wang: After deducting the balance of short-term borrowings, we have ample cash on our balance sheet of 2.01 billion RMB. I would like to update you on how we did during the Chinese New Year. On February the 24th, which was the Lantern Festival, we achieved a GMV of more than 100 million RMB in just one day, setting our highest single-day record post-pandemic. Additionally, between Chinese New Year's Eve and the Lantern Festival, at the same store level, our overall order volume increased by 6% year-over-year and GMV by 5%. And in East China, our order volume increased by 9% year-over-year and GMV by 7%. It's worth noting that this performance is even more impressive considering that during the Chinese New Year, there were significantly more outbound residents from Jiangsu, Zhejiang, and Shanghai.

More will take advantage of our comprehensive supply chain and system capabilities to improve our operational efficiency and drive profitability.

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This concludes our speech today operator, we can now start the question and answer session.

Thank you.

We will now begin the question and answer session.

Ask a question you May press Star then one on your Touchtone phone.

If you are 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 press Star then two.

When asking a question. Please state your question in Chinese first then repeat your question in English for the convenience of everyone on the call.

Song Wang: Our financial resources are well-stocked. In 2024, we will continue to use high-quality services to provide consumers with extremely cost-effective and high-quality products. At the same time, we will also use our supply chain and system capabilities to continue to improve our operating efficiency and profitability. For 2024, our primary focus will be to maintain our high-quality services and deliver products that offer the best cost-effectiveness and quality ratio to our valued customers. Furthermore, we'll take advantage of our comprehensive supply chain and system capabilities to improve our operational efficiency and drive profitability. That's all for today's presentation.

At this time, we will pause momentarily to assemble our roster.

The first question today comes from judging Chen with T. I C C.

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Hello, Mr. Diamond, that's too long I am changing from TICC, congratulations on achieving five consecutive quarters of non-GAAP profitability.

I think that we recently announced that the company plans to repurchase up to $20 million office chairs I genuine one January 20 planes right could you give us more color on this thank you.

Operator: Now we can move on to the Q&A session. This concludes our speech today. Operator, we can now start the question and answer session. Thank you. To ask a question, you may press star and one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the key.

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Operator: If at any time your question has been addressed, and you would like to withdraw your question, please press star then. When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. At this time, we will pause momentarily to assemble our rockets. The first question today comes from Jiajing Chen with CICC. Please go ahead.

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Thank you for your question as Hugh mentioned, we recently announced a stock repurchase plan. It will last one year with the total of 20 million U S. Dollars, we expect to begin buying back shares once the blackout period and following earnings.

Jiajing Chen: Hello, Mr. Liang. Hello, Mr. Wang. I am an analyst for ZTE, Jiajing Chen. I am very happy to be asked this question. Congratulations to the company for achieving a profit of $20 million in five quarters in a row. I saw that the company recently issued an announcement that it will buy back at least $20 million before January 28, 2025. I would like to ask how the company will consider buying back the shares. Thank you.

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Jiajing Chen: Let me translate. Hello, Mr. Liang and Mr. Wang. I am Jiajing Chen from CICC. Congratulations on achieving five consecutive quarters of non-gap profitability. Dingdong recently announced that the company plans to repurchase up to 20 million U.S. dollars of its shares by January 2025. Could you give us more color on this?

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Our stock is significantly undervalued at the current price, especially in view of our long term growth prospects given our ample cash reserves buying back stock is an effective way to allocate capital, especially when the stock is undervalued.

Liang Changlin: Thank you for your question. First of all, I would like to make a brief report. At the end of January, we announced that the total amount of returns for a year will be 20 million US dollars. We plan to start the returns in a non-limited period after this report is disclosed.

This program will be beneficial for both the company and its shareholders.

Liang Changlin: As you mentioned, we recently announced a stock repurchase plan that will last one year, with a total limit of $20 million. We expect to begin buying back shares once the blackout period ends following earnings. From a long-term perspective, we think that our current stock price has been severely underestimated. For a company that has sufficient cash reserves, returning to the stock market is a good way to allocate funds, especially when the stock price is underestimated. This is both beneficial to the company itself and to the shareholders. Based on the company's internal situation and confidence in the future, we believe that the company's overall financial situation is good and that it has sufficient cash reserves. At the same time, we are not worried about cash flow for the next year.

Based on the company's internal operations and our confidence in its future. We're convinced that our overall operations are in very good condition.

Ample cash research and zero concern about cash flow for the next year.

This leaves us in an ideal situation in a position to carry out a share buyback with our own cash.

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Liang Changlin: We have enough free funds to start the share repurchase. Our stock is significantly undervalued at the current price, especially in view of our long-term growth prospects. Given our ample cash reserves, buying back stock is an effective way to allocate capital, especially when the stock is undervalued.

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Given current economic and market conditions. This share repurchase program reflects our strong financial position. Our goal is to increase the company's intrinsic value and show that we have confidence in its long term growth.

Liang Changlin: This program will be beneficial for both the company and its shareholders. Based on the company's internal operations and our confidence in its future, we're convinced that our overall operations are in very good condition. We have ample cash reserves and zero concern about cash flow for the next year.

Liang Changlin: This leaves us in an ideal situation and position to carry out a share buyback with our own cash. In the current economic and market situation, we hope to use this method to show the company's healthy financial situation, improve the internal value of the company, and also show confidence in the long-term value of the company. But at the same time, we also need to be clear that the re-purchase of the stock is just a market behavior.

However, it's important to note that buying back buying back shares is against market activity. The key to enhancing the company's overall value lies in our ability to continuously improve our operational capabilities, ensuring sustainable and long term development. Thank you.

The next question comes from Thomas Chong from Jefferies. Please go ahead.

Liang Changlin: The key to improving the overall value of the company still lies in the ability to continue to improve our current business ability so that we can continue to develop for a long time. Stephen Curran, Akim. Given current economic and market conditions, this share repurchase program reflects our strong financial position. Our goal is to increase the company's intrinsic value and show that we have confidence in its long-term growth. However, it's important to note that buying back shares is just a market activity. The key to enhancing the company's overall value lies in our ability to continuously improve our operational capabilities, ensuring sustainable and long-term development. The next question comes from Thomas Chong, from Jeff. Please go ahead.

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Thomas Chong: Hello, President Liang. Thank you for accepting my question. My question is to ask if we can make a summary of the whole year and if there are any changes from a strategic point of view. Thank you for your question. First of all, I would like to share a message with you. Hard times create a strong me. Jinán de shkè zng léng chàngzào ynggn de rén hè yónggn de, from Tunisia.

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Thank you for your question before we move forward I would like to share thing with your hard times create strong managed strong teams.

Comes up perfectly our journey through the pandemic.

Liang Changlin: Thank you. Secondly, today, in such a complicated environment, we will face many challenges. If we can persist, we will become a stronger company. Thank you for your question. Before we move forward, I'd like to share a saying with you: hard times create strong men and strong teams. This sums up perfectly our journey through the pandemic.

Face numerous challenges and difficulties, including issues with our systems personnel and supply chains, but we didn't let these obstacles to get the best of us.

We stood up and persevere.

Emerging a much stronger company overall.

Now, we find ourselves facing a new and challenging environment that will present more obstacles going forward.

Liang Changlin: We face numerous challenges and difficulties, including issues with our systems, personnel, and supply chains, but we didn't let these obstacles get the best of us. Instead, we stood up for ourselves and persevered, emerging a much stronger company overall. Now we find ourselves facing a new and challenging environment that will present more obstacles going forward. Given our recent experience, however, I'm confident we'll emerge as an even stronger company on the other end. Persistence and change is the belief we have had from the beginning of the establishment to the present. We have always insisted on developing this industry. This is called perseverance.

Given our recent experience however, I'm confident we will emerge as an even stronger company on the other end.

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At our company, we've always believed in the power of persistence and change it.

Liang Changlin: Throughout the process, we have made many changes, including the continuous opening of the new city in 2018, which has also suffered many losses. By July 2021, we will adjust our strategy to prioritize efficiency and maintain scale. So far, we have made profits in five consecutive quarters, turning from huge losses to profits.

Worked tirelessly to drive the industry Board and have made significant progress in this regard, but we also recognize the importance of change and make any adjustment over the years.

For example, he has built a presence in a multiple new cities after 'twenty team, even though it meant incurring losses over the medium term.

Liang Changlin: This is our change. At our company, we've always believed in the power of persistence and change. We've worked tirelessly to drive the industry forward and have made significant progress in this regard. But we also recognize the importance of change and have made any necessary adjustments over the years. For example, we built a presence in multiple new cities after 2018, even though it meant incurring losses over the medium term.

However, we're proud to see that seems July 2021 which is when we adopted the strategy to prioritize efficiency with due consideration to scale, we've been profitable on a non-GAAP basis for five consecutive quarters and this is a testament to our commitment to both persistence.

And change and we're excited to see what the future holds.

Liang Changlin: However, we're proud to say that since July 2021, when we adopted the strategy to prioritize efficiency with due consideration to scale, we've been profitable on a non-debt basis for five consecutive quarters. This is a testament to our commitment to both persistence and change, and we're excited to see what the future holds. ,, Now, with the change in the environment, with the change in the consumption trend, we also need to make some adjustments to our way of playing. The first is to dig deep.

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We've always believed in the power of adapting to the changing times and following evolving consumer trends and the recent in the current environment. It's crucial to stay on top of these changes and make the necessary tweaks to remain relevant and successful.

One way to do that is by digging deep.

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Liang Changlin: We've always believed in the power of adapting to changing times and following evolving consumer trends. In the current environment, it's crucial to stay on top of these changes and make the necessary tweaks to remain relevant and successful. One way to do that is by digging deep.

First we will focus on strengthening our strongest markets, particularly in Jiangsu, Zhejiang and Shanghai, we can work towards improving our market penetration in these regions to further expand our reach.

Liang Changlin: First, to strengthen our current operating area based on the deep-rooted Jiangsu and Zhejiang regions and further improve our market penetration in the current area. We can work towards improving our market penetration in these regions to further expand our reach. Second, on the basis of making a good meal at the moment, we will also take advantage of the advantages of the Chinese New Year to extend the scene of eating outside the table and break the category circle. In the construction of a free brand, we will further improve the free brand ratio of non-fresh products on the basis of the long-term progress we have made at the moment. At the same time, the goal of creating a head-to-head single product has always been to become the first choice for Chinese families when it comes to fresh food and food shopping.

Alright.

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In addition, we will utilize our existing.

Existing strange in the meals category and leverage the efficiency of our supply chain to expand beyond traditional dining scenarios.

Enable us to breakthrough into new categories to reach new Heights.

Will increase the proportion of private label products and the non fresh grocery categories building on the significant progress.

You have made at the same time, we'll focus on developing and promoting best selling products to become the preferred choice for grocery and food shopping for Chinese families.

Liang Changlin: In addition, we'll utilize our existing strengths in the meals category and leverage the efficiency of our supply chain to expand beyond traditional dining scenarios. This will enable us to break through into new categories to reach new heights. We will increase the proportion of private label products in the non-fresh grocery categories, building on the significant progress we already have made.

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When it comes to our channel strategy as I mentioned earlier, we plan to invest more resources in deepening our reach to users in existing regions to achieve our G M b growth targets.

Liang Changlin: At the same time, we will focus on developing and promoting best-selling products to become the preferred choice for grocery and food shopping for Chinese families. Thirdly, in terms of channel construction, as mentioned above, we will further increase the resource investment of users in the existing area to return to the CMV growth target. At the same time, we will further increase the cooperation with external channels such as Douyin and Erma and increase the market share in the listed channels. When it comes to our channel strategy, as I mentioned earlier, we plan to invest more resources in deepening our reach to users in existing regions to achieve our GMB growth target. Additionally, we'll collaborate even more closely with Doin and Ulema and seek partnerships with other external channels to expand our market share in these channels.

Ali will collaborate even more closely with Don and Omar and seek partnerships with external.

Other external China to expand our market share in these channels.

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Our second priority is to focus on the long term sustainability of our business to achieve this we will prioritize driving efficiency, while scaling our business and improving our supply chain efficiency for it or.

Liang Changlin: Our second priority is to focus on the long-term sustainability of our business. To achieve this, we'll prioritize driving efficiency while scaling our business and improving our supply chain efficiency further. We have already mapped out a number of actionable measures that will take this year to do so. Additionally, we aim to speed up the operational adjustments and improvements we're making in loss-making areas at a regional level to stem financial losses.

We have already mapped out a number of actionable measures that will take this year to do some.

Additionally, we aim to speed up the operational adjustments and improvements, we're making in lossmaking areas at a regional level two STAM financial losses.

Liang Changlin: This will ensure that we can survive the challenging environment we currently face and position ourselves to grow once things improve. As we mentioned in the financial analysis meeting before, after the pandemic, retail companies need to adapt to a new environment full of challenges. The mentality of consumer shopping needs to be determined. Even if retail will return to its commercial nature, it needs to provide better service ability, stable quality guarantee, and price competitiveness to consumers in the process of shopping. In this winter, we will continue to study basic skills such as commodity power, service power, operation power, and organizational ability. As we mentioned in previous earnings calls, retailers need to adapt to a complex new post-pandemic environment. What consumers want most in the current environment is certainty, and instant delivery retail can cater to this by providing reliable service, stable quality assurance, and competitive pricing.

This will ensure that we can survive the challenging environment, we currently face and position ourselves to grow once things improve.

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Did you actually mention as we mentioned in previous earnings calls, we tend like need to adapt to a complex new post pandemic environment.

What consumers want in those in the current environment is certainty and instant delivery retail can cater to this by providing reliable service stable quality assurance and competitive pricing.

Liang Changlin: Given this climate, we'll continue refining our core competencies, including product, service, operational, and organizational capabilities. Thank you. As a reminder, if you have a question, please press star then one to be joined into the question queue. That's star then one to enter the question.

Given this climate will continue refining our core competencies, including product service.

Operational and organizational capabilities. Thank you.

As a reminder, if you have a question. Please press star then one to be joined into the question queue.

That's star then one to enter the question queue.

Yeah.

As there are no further questions I'd like to return the call to management for closing remarks.

Operator: As there are no further questions, I'd like to return the call to our management for closing remarks. Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request through our website. We look forward to speaking with everyone on our next earnings call. Have a good day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Yong Hu, Unknown Chief Executive, Wenting, Thanks for watching! have passed away.

Thank you again for joining our call today.

You have any further questions. Please feel free to contact there is already fastest through all of that.

Thanks.

We look forward to speaking with everyone in the next earnings call have a good day.

Yeah.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Okay.

Yeah.

Yes.

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