Q3 2024 Baozun Inc Earnings Call
Good morning, ladies and gentlemen, and thank you for standing by for bows and third quarter, 2024 earnings conference call.
At this time, all participants are in a listen-only mode.
After Management's, prepared remarks, there will be a question and answer session.
As a reminder, today's conference call is being recorded.
I will now turn the meeting over to your host for today. Call Miss Wendy Sun, senior, director of corporate development and investor relations of thousands. Please proceed Wendy.
Thank you, operator. Hello everyone. And thank you for joining us. Today our third quarter 2024 earnings release was due date earlier before this call and is available on our a website at irb.com as well. As on P's web services. They have also posted a PowerPoint presentation. That accompanies our comments to the same IR website, where they are available for your download
On the call today from Belgian. We have Miss win, chairman and chief executive officer Miss Katherine Drew Chief Financial Officer. Miss our present of Bowen e-commerce and Miss Ken Wong Chief Financial Officer of baughan brand management.
M j. Welfare share, our business strategy and Company, highlights, followed by Mr. Who will discuss our financials and Outlook and then by Mr. And Mr. Hang to share more about our e-commerce and brand management business separately. They will all be available to answer your questions during the Q&A session that follows.
Before we begin I would like to remind you that this conference call contains power looking statement. Within the meaning of the US Security Act of 1933. As a mandate, the US security exchange Act of 1934 as a mandate and the US private security. Litigation Reform, Act of 1994
This forward-looking statement are based upon management, current expectations, and current market and operating conditions, and relates to events that involve no Aur and no risk, uncertainties and other factors out of which a difficult to predict, and many of which are beyond the company's control, which may cause the company's actual result today, for a materially from those, in the forward looking statement.
For the information regarding this and other risk uncertainties of factors is included in the company's filings with the US Security and Exchange Commission, and its announcement notice or other documents published on the website of the stock exchange of Hong Kong Limited. Our information provided in this call is as the data appears and is based on exceptions that the company believes to be reasonable as of the state. And the company does not undertake any obligation to update any overlooking statement except as required and applicable law.
A lady, please note that a life advice dated all figures mentioned during this conference call are in R&D. In addition, we may elect to use adjusted in place of non-general accepted accounting principles online Gap. In order to reduce oral confusion that may cause from our discussions about financials and operations related to to the gaap grant.
It is now my pleasure to introduce our chairman and chief executive officer. Mr. Winston qiu. Vincent, please go ahead.
Back with the 1, senior strategic transformation.
Our total revenues grew by 13% year-over-year reflecting the strength of our revitalized approach and the consistent operational alignment.
Both BC and the BBM have enhanced key growth drivers.
BC. Achieved a 14% Revenue, increase driven by improvements in both the services and the product sales.
Notably the dauin business grew by triple digit year-over-year, directly resulting from our strategic integration with location and our commitment to launching innovations that capitalize on emerging trends.
This is initiatives have strengthened our presence on doing further. Reinforcing bonds leadership in digital Commerce.
Presume the growth with a 10% year-over-year increase.
The first Apple to Apple Revenue expansion since our acquisition. And in fact,
Following years of Topline contraction from Gap, brand in China.
Our efforts to build Partnerships Have Been instrumental in integrating global resources, with local, insights and networks. And we anticipate sustained Topline growth momentum in 2025.
Hunter has also made a solid progress as we continue refining product categories and optimizing our Channel network.
This momentum was highlighted by the recent launch of a pop-up store in Shanghai High Fashion District Jiang. You
The opening generated remarkable attention during golden week, attracting widespread visibility that drives traffic and sales these initiatives. Both their Hunters Brands equity and further underscore our brand management capabilities and the localization of brand appeal,
In summary, Q3 has been a pivotal quarter of growth and the progress across our business segments.
I'm confident about sustaining this momentum.
Now, let me pass to Katherine for financial updates.
Thanks Vincent and hello everyone. Now let me share with you our third quarter 2024 Financial results.
Please turn to slide number 3.
Modern group's total. Net revenues increased by 13% year-over-year to 2.1 billion.
Of this e-commerce Revenue grew 14% to 1.8 billion, while brand management Revenue, grew 10% to 331 million.
Breaking down the economy by business model Services Revenue increased by 15% to 1.3 billion for the quarter.
This growth was primarily driven by a 40% year-over-year, increase in revenue from digital marketing, and IT solutions as well as improved performance in emerging channels such as growing and tencent mini programs.
BC product, sales revenue, resumed the growth for the first time since the launch of our transformation plan Rising 10% in over a year to 454 million.
This growth was mainly driven by stronger performance in the beauty and cosmetics categories, along with increased contributions from our self incubated Brands and those on the exclusive distribution business model.
BBM product sales, total 330 million for the quarter, reflecting a 11% year-over-year growth compared with the same period of last year.
This growth was mainly attributable to our product segmentations and Merchandising plans.
Please turn to slide the number 4.
From a profitability perspective, our Blended gross margin at the group level for product sales was 28.
1% and growth profits increased by 2% to 220 million.
Breaking this down by our key business lines. Growth margin for e-commerce product sales were 10.2% for the quarter.
The decrease in gross margin for e-commerce. Product sales was mainly due to a higher proportion of promotional rebates,
Mostly casual based from Brand partners.
Compared to the great portion of procurement rebates in the same period of last year.
On a like, like comparison basis, gross margin for e-commerce expanded by approximately 500 basis points from the same period of last year.
Course, margin for BBM was 52.9% relatively flat compared to the previous quarter.
Now, turning to bottom line items, please refer to slide number 5.
During the quarter, I'll adjust the laws from operations totaled, 85 million and Improvement of 5 million, from a loss of 90 million a year ago.
This included an adjusted operating loss of 30 million from e-commerce segment and Improvement of 10 million compared with 40 million, in the same period of last year.
BBM adjusted operating loss totaled. 55 million compared to 50 million in the same period of last year.
Our just net loss attributable to shareholders for the quarter was 67 million and Improvement of 12.5% year-over-year from 6 76 million in the same period of last year.
As of September, 3020 2024, our cash and cash equivalents restricted, cash and a short-term Investments totaled 2.7 billion.
Lastly, we continue to execute our share repurchase program yesterday. We have repurchased approximately 3.6 million ads for 9.9 million US dollars through the open market.
Reflecting our confidence in the company's future.
Please note that our stock repurchase program must adhere to applicable us and Hong Kong statutes and regulations.
As well as compliance requirements of NASDAQ and Hong Kong Stock Exchange, including, but not limited to daily training, volume, trading, windows, and impact on measurements of voting rights.
Yeah. Today we have repurchased approximately 6% of our total shares outstanding at the beginning of the year.
As of today, the remaining amount of shares as authorized. By our board, by our share repurchase program. Effective through January 2025 is 10 million US dollars.
Let me now pass the call over to USA to update you. On BC, our eCommerce business.
Okay, thank you, Vincent, and Catherine and hello, everyone.
We are glad to report that. BC continued, its growth in quarter 3, achieving a 14% year-over-year Revenue increase
Our services Revenue further accelerated its upward Trend and grow 15% year-over-year.
Sales also made a notable recovery to achieve a 10% year-over-year growth, following years of contraction.
We believe the improving Topline momentum reflects the progress of our strategy to transform these business towards a healthier more Diversified and resilient model.
Now, please turn to cite number 6, for operational. Highlights on services.
Our call category including apparel and luxury displays consistent growth.
Citing a solid foundation for service revenues.
Our brand partners are actively engaging with us on Creative content and how many Channel marking to boost brand awareness online.
Our continued innovation in digital marketing, had earned a several prestigious industry recognition including the top-notch award of best e-commerce agency of the year and the recent Roi Festival.
In terms of how many China expansion.
Overdoing business achieved triple digit growth year over year.
We focused on brand Centric live streaming and delivered several high impact projects.
This included a Brand's live stream for a leading luxury, Automotive brand and a sales driven live stream for an international theme park brand.
In addition we hosted multiple high-profile fashion show, live streams.
Significantly enhancing both brand visibility and sales conversions for our brand partners.
Beyond store in. We also recorded high growth on emerging platforms like tensions mini program and Little Red Book.
As a right partner on Little Red Book, we have made it a strategic focal point and will continue to upgrade operations and marketing services to drive substantial growth for our clients, on this recent content driven platform.
now, turning to product sales at highlight page on, slide number 7,
the growth turnaround in product sales.
Was mainly driven by our efforts in prioritizing high quality business lines.
And the completion of optimization of low margin projects in previous quarters.
Categories such as Beauty and cosmetics.
Keys and baby and home and Furnishing achieved, strong double digit growth.
We also expanded our category Matrix with new initiatives in apparel and trendy toys.
For the strengthening, our diversification and business resilience.
We are focusing on China expansion and brand marketing.
Among the brands we operate.
The British high-end.
Teaching brand.
Sources sales performance, this quarter far, exceeded our expectations.
we anticipate continued Topline growth and improved the profitability for our product sales business, in the coming quarters,
In addition to building a higher the Topline growth. We also implemented efficiency enhancing measures through the application of aigc tools.
During the quarter, we launched our intelligent customer service assistance as we to quickly understand and respond to Consumer needs delivering personalized high quality service.
Finally, let me provide a quick update on the recent w11, shocking Festival.
Our total order value. Reached a record high with double digits year-over-year growth
Partners we participate in the campaign.
More than half achieved year-over-year growth.
And 20% of the brands are more than doubled the growth sales.
Across channels, including chemo JD doing and Vip Shop.
We owe achieved double digit growth.
While the recent w 11 was encouraging.
The high. Uh the record high return rate also dropped down overall operating efficiency.
As we headed into quarter 4, we remain cautious due to persistent, microeconomic pressures and a slower than expected consumer recovery.
We are committed to helping Brands succeed in the competitive market in China.
now like uh now I will pass to can so I update on dbm
Thank you team and thank you all. Please turn to slide number 8 for additional insights into bbm's progress through Q3
I'm pleased to report that BBM achieved, a 10% year-over-year, Revenue growth, making the first Topline turnaround for Gap in recent years, on April to April basis.
More encouragingly. Q3 demonstrated a steady sales momentum with screen show improvements from July through September.
this goes through reflects, the earliest success of our strategic initiatives, despite the ongoing micro challenges,
Close collaboration with gabbing global resources remains Central to our development plan.
This close partnership enables us to tailor products to local preferences.
While preserving Global brand integrity.
We also Incorporated the global campaigns such as get loose for original appeal, to create a seamless and satisfying experience for our customers.
We continue to optimize planning and execution across design and Supply chains to enhance efficiency and the consistency from concept to delivery.
Ensuring better alignment of product availability with demand.
During the quarter, we introduced the channel specific exclusive products and the implemented more strategic pricing reason aligned with the product life cycle.
In particular we participate in the super potential for both adult and kids and baby which drove the channel to account for over 40% of our online sales for the quarter.
We expect exclusive products to continue being a major driver of our online sales in the coming months.
Approaching abled us to achieve higher conversions while maintaining stable, gross margins.
In Q3, we opened 24 new stores, including high-performing stores. Uh, in such such as um, as well as Beijing and Shanghai. This new stores, delivered strong conversion rates.
Healthy Growth margins and the impressive monthly productivity in terms of sales per square meter.
As mentioned in our previous communication, we continue to fine tune, our new store opening philosophy to maximize store, productivity, while capitalizing on opportunities in Emerging Markets.
Additionally, we have increased the shopping environment to be family friendly and enjoyable for all ages.
Going forward, our expansion strategy will focus on quality locations.
High traffic neighborhood areas in emergency cities.
At the same time we are leveraging local Partnerships in new Tier 1 and tier 2 cities to ensure that new openings aligned with market demand and the long-term potential.
We Believe collaborating with strong local Partners. We are not only enhance our success, but also mitigate Market risks.
A recent nationalwide Road show with existing and potential landlords and the franchise Partners highlighted, The increased confidence and the commitment to the brand go goals.
They expressed appreciation for gaps. Consistent brand identity and our flexibility in localizing products and operations.
we are on track to meet our annual Target of 15, new stores, increasing total stock footage, year-over-year by the end of 2024
Additionally, we opened the 2 new Hunter stores 1 in Shanghai and 1 in Singapore.
Bringing the total number of offline stores to 146 and our management by the end of Q3
In summary, despite the challenges of our gradual consumer recovery, we remain disciplined in our strategic Direction, our focus on localized engagement, covered with gaps, Global brand strengths positions. As well to expand our footprint Drive Topline growth and maintain Healthy Growth margins.
That concludes our prepared remarks. Thank you operate. Operator, we are now ready to begin the Q&A session.
Answer session.
to ask a question, you may press star then 1 on your touchtone phone,
If you are using a speaker-phone, 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 2
At this time, we will pause the momentarily to assemble our roster.
The first question today comes from Alicia Yap. With City Group, please go ahead.
Hi. Um, thank you. Good evening management. Thanks for taking my questions. Um, congratulations on the solid result I have 2 question. Uh, first is that can management uh elaborate the overall performance during this year single stage. Um,
Specifically which category, uh, perform better than your application and which category, uh, performing uh, slightly worse than your expectation. And then, um, how is your gaap? China sales during, uh, the single sales also wondering if um, there's any differentiated shopping behavior, that you observe, uh, this year compared to the previous year and then second question, um, is related to, uh, your advertising tool. So, with, um, more platforms are rolling out, uh, the AI advertising tool. So how will bauhn actually embrace? Um, the AI technology to capture, uh, even bigger opportunities. So have you seen, or do you anticipate? Um, that could be more, uh, smaller Brands. Uh, especially the domestic Brands, uh, might be more eager or need to seek help from about June, uh, on helping them to, uh,
Uh do the better targeting digital ad campaign in the future. Thank you.
Hi, Alicia, this is Arthur. Thank you for the question. Uh, let me, let me provide some answers for the 2. Um, the first 1 regarding the performance of, uh, the single stage for this year. I think we delivered actually a solid, uh, performance from our own perspective. So, basically the categories which are over strand like the apparel sports and luxury, all performed pretty well during the double 11 campaign, um, the ones which are not meeting our expectation, are the small appliance and also travel uh um uh, which is the hotel, uh, unseen part which has slightly below our expectation.
Uh, the key uh, character for this year is actually footballing, is a true Omni Channel 11. So basically, as I mentioned earlier, all the major channels and uh, has show a double digit growth, which means our business model is towards more uh, Omni Channel business model. And also um, there is uh, a character which, um, um we have seen is the period of w11 has become longer and also the return rate and cancellation rate has been higher. So these giving the campaign period
More challenging. Uh, but uh, uh, the service provider like bin actually stand out during this period because our service capability and also our infrastructure and it provides a stable service to the brand, which they really like. So this is what I uh, would like to further comments on top of 11.
Uh,
Regarding to aigc. Uh, we actually started to apply the aigc technology to our business operation. Uh, a couple of years ago.
And from our perspective, AI will help the business from 2 aspects.
Number 1 is improve the efficiency. As I mentioned, in the prepared notes. Uh uh so in this quarter, we up um we successfully adapted a new tool called as way which is helping our customer service agent to simplify uh, the way they do work. Improving the service quality. At the same time, reducing the average lead time for each of the operation. So this is what
Okay, if a better, informed decision making tool to our brand and from Belgium, uh, we recently pushed out what we call Bing business intelligence, which are helping the brand to collect and analyze the market data, to inform them, with a better merchandising, and planning strategy. So, those are how we apply the igc tools in the day-to-day operations, and we have seen uh, the good result from those.
Thank you.
Maybe can address related question. Yes. And for the uh, sales of gaap performance in own
Our ranking total, the final ranking in mental apparel, on T-Mobile actually, increased the, uh, 3 positions compared to last year. Uh, the sales, uh, on both gmv and SLS, uh, increased by double digits. And this performance is not only on T-Mobile this year, we we even performed stronger on JD and other platforms. So in total we are uh, satisfied with with our performance of gaap sales on double 11. Thank you.
Thank you.
The next question comes from Frank. Tao with cmvi. Please go ahead and
hey, thank you. Hi management. Thanks for taking my question. Uh, I have a question regarding your business operating strategy. We've noticed a Slowdown Trend in the Germany growth rate of live streaming e-commerce platforms this year and I would like to ask, how does management see this trend, and will there be some adjustment to your business operating strategy in the coming quarters? Thank you.
Um okay, thank you. This is um also I will comment on them uh, if you've been some more if it is required. So basically, from my point of view as I mentioned, we are already all mini China operations. So the trend in the different channel. Uh, will not, uh, fundamentally change our operations because what we are now, uh, offering uh, the service and solutions to our brand is to helping them to better planning which EC platform. Uh, should they put more resource and emphasize going forward to do the e-commerce business. And um, based on that we have developed a lot of tool and a lot of the um and a lot of uh, the analysis to help them make a decision in terms of how to decide where to put resources on to. So, this is the first 1 and second 1, um, given our, uh, our stronghold is on Timo. And
During this year's w11 and 618, we have seen, uh, a strong recovery in terms of the overall T more performance. Uh, that is also, um, a good sign, uh, which helping us to drive our business forward.
Yeah, I think, uh, this is a Vincent. Um, so right now, our capability is already established across all the channels.
And all the, uh, service components. That means that we have the capability to deliver services to each of the Platforms in. Uh, no matter. It is a streaming, uh, Commerce or not.
Uh and also uh, so so we support all the channels uh and uh just as a as mentioned or business intelligence right now can have a close. Uh, look of all the channels Dynamics and tell us a little about the future Trends. So we can allocate the resources, uh, depends on the uh, the Judgment for the future potential of each of the platforms to get a better result. Thank you.
Thank you.
The next question comes from Thomas. Chong with Jeffrey, please go ahead.
Next mention for taking my question. So I have to question. Uh, my first question is about, um, so how is the monthly sales performance? Uh Invasion month? Post, uh, double 11 and my second question is, um, how should we think about like, the outlook for categories, like, luxury apparel, fmcg, and consumer electronics? The
Appliance.
Thanks. Okay, thank you for the question. Um, I think given this year 11, there's a lot of Highway promotion and big discounts given by all the platform post double 11. We have seen a softening uh sales uh from all categories. Uh but with the wider catching holder, especially for the apparel category. Uh, we hope there will be a recovery uh uh in terms of the sales going into the December.
Um, so this is the overall uh in terms of the luxury apparel and fmcg those categories.
I think overall, uh, we have seen, uh, the growth rate being flat year over year, um, and over Outlook into the next year is, um, uh, it's relatively cautious, having said that, um, I think, uh, What, uh, bjune has been doing is to, uh, um, uh, is to be able to provide a high quality service, uh, for the brand Partners. We operate, uh, given uh, the current market condition. Uh, all the brand partners are starting to put a lot of emphasized, in terms of, uh, their infrastructure and capability building. Which means uh, they like the partners like bin, who has a very good capability across
Of all the Omni Channel.
Which helped them to become a partner to help them to make, uh, um, to make a decision in terms of how to drive the business forward.
Um, and I think, um, with that, we think, even though the overall Market Outlook, uh, is relatively cautious but, uh, uh, under this Market, there are huge opportunity for balloon to operate and to succeed.
Thank you.
Once again to ask a question. Please press star then 1 to enter the question queue.
Once again that star then 1 to enter the question queue.
In the next question. Comes from jawe. Yin with citiz. Please go ahead.
Hello. Good evening management. Thanks for taking my question. Congrats on the to Porter and uh, I have 2 questions. Uh, the first is that the Jedi cam has also invested a lot in the closing category for for this year's 1111 campaign. And the growth rate is also very impressive. So how is bonds layout in this channel? Uh and my second question is that uh we have seen many media reported that the return rate of the love. Growing brand is very high. So what
Uh, bonds comments on this and has there been a significant increase in consumer return rates, uh especially in the closing category um, and for the brand operated by Bon, thank you.
Okay, thank you for the question. This is after, um, yes, we have also seen a good performance from JD platform and, uh, Bolton has been
very closely with JD as the Strategic partner, to drive the growth of the apparel and sports category. And um, uh, in 2023 and 2024 we have been voltage as the most high level strategic partner, uh, ginjo partner, which is means, we have, um, we have achieved a results, they think we're a good partner to them.
um, so basically from a
Um, our cap brand is 1 of the top.
Performing brands in JD. And also from a luxury brand perspective, top 10 brands operating in JD 5 of them are operated by bin. So this means how, uh, we help the JD to push that forward. But having said that overall size in terms of the apparent Sports category on JD, it's small, um, it's still very small compared
Ways. Uh, T-mobile with
Not a huge opportunity for balloon to further succeed in this platform.
Um, now turning to Ralph Lauren. Um so
The news about the high return and cancellation for Ralph Lauren. Um, we are very sorry to see that but we are not in a position to comment. Uh, this is our um,
Uh our our brand um a business. But what I can share with you is how we help Ralph Lauren to smooth the negative impact in terms of the cancellation.
Uh because we operate uh the technology in terms of e-commerce for our flooring and during the double 11 period, once there is a cancellation, our system can help and Ralph Lauren business to uh um to put the product by come to the Shelf within a very short period sometimes only within a couple of minutes which means, even though there is a high cancellation rate but the impact to the brand is very minimal.
So as a result, the cancellation rate is very high. But the impact to the business is minimized to the levels which are not impacting business hugely
And what, um, and what I can share with you is the night gmv Target on Ralph Lauren for balloon, we have exceeded that Target. So, um, um, yeah. And also the brand are happy with our service in terms of the overall apparel, uh, High return and cancellation is still an issue. Uh, even though we tried from a operation perspective to solve that problem, but still, uh, from this year's overall performance, we still see a high single digit increase in terms of the return, uh, and cancellation rate overall.
I hope that answer your question.
Thank you. That's very clear. And uh I want to ask a little uh a more uh 1 more question. Uh we have seen that the output of vbg department is quite encouraging compared to our observations for brands in apparel industry. So can management share more about the Topline Trends? Uh as well. Thank you.
For BBM, uh, I think first is, uh, the big portion is still, uh, Gap. Uh, but also Hunter also performing very well on on Q3. And I forget as his explained before because, uh, uh, our online growth on in Q3 is very, uh, encouraging, especially our performance on doing super, uh, brand show, uh, as well as, uh,
our product product and uh,
Uh, commercial strategy. Uh, such like what you asked the question about JD when a brand are facing the different platform strategies. This requires the brand to have a more flexible uh, product strategy and also commercial strategy to be more, uh, faster responsive to the, uh, platform and this flexibility in Belgium BBM. Help us to, uh, increase our online sales, uh, higher than our expectations and for offline. Uh, although the, uh, overall traffic is uh, uh, not, uh, fully recovered but quarter to quarter is improving. And with our, uh, expansion into the new new Tier 1 and the tier 2 cities and the new stores performance, especially the sales per square meters. Also help us to increase our uh, sales performance.
I hope this answer your questions. Thank you.
Very clear. Thank you.
Once again, if you would like to ask a question, please press star then 1.
The next question comes from Jack hou with koi Thai security. Please go ahead.
Hi. Thanks man for taking my questions. Uh, congratulations on the solid results, and I have 2 questions for you. Uh, the first 1 is about, uh, with this ew11 promotion. Uh, maybe we saw a slightly warming consumption sentiment versus third quarter. Uh, we all know about the operates many Brands and many categories. So how does bin expect the consumption Trend and opportunities in the next year? And I have a follow up on uh our outlook for next year as well as we approaching the end of this year. Good management share some color on our Auto look for next year or maybe on top 5 and the margins. Uh, thank you very much.
Okay, thank you. I will take the first question, uh, for the second 1. Uh, maybe you need some, um, and Catherine. I don't in terms of Outlook, uh, for Belgium. Uh, so the first 1 in terms of the Outlook, uh, for consumption. Um, what do you think for next year? The overall consumption will further stabilize. Um, so after the, um, up and down during the CEO period, uh, a lot of the brands has chose, uh, to be cautious on the China Market, uh, from about perspective, we have, uh, seen, um, um, um, the brands want to spend more money in terms of building the internal capability.
Which we will put more emphasis on helping them to do so. And from our own perspective, we will focus more on service quality and Innovation as a key to maintain our stronghold in terms of apparel luxury and Sport. At the same time, we will use our capability in those 4 categories to expand into other new categories, which to drive the growth. So, this is from about in perspective.
Recent customer. Do you want to comment on the Outlook? Sure sure. Yeah, the second 1 is, uh, looking forward. Um,
we think, uh, 2 things
Number 1, is that we are seeing that more and more policies and initiatives, uh, from the government, uh, we think this will better, uh, the economy in general. So, we have a reason to be a little more optimistic, uh, for next year. Uh, and also, I think most important
Our Focus will be in optimizing our operations, uh, to mix our own business better. Uh, this is even more important than the others. So I think, um, next year for us all the aspects of the business operations, we were looking to the potential, uh, seriously and make that to be realized, uh, you know, more in 2025.
Thank you.
Very helpful. Thank you.
This concludes our question and answer session, I would like to turn the conference back over to the company for any closing remarks.
Thank you, operator on behalf of Bowen management team, who like to, thank you all for your participation in today's call, if you require any further information, feel free to reach out to us. Thank you for joining us today. This concludes the call.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect