Arco Platform Ltd (ARCE) 2023 Q2 法說會逐字稿

Good afternoon, everyone. Thank you for standing by, and welcome to Arco Platform Second Quarter 2023 Earnings Call. This event is being recorded. (Operator Instructions) This event is also being broadcast live via webcast and may be accessed through Arco's website at investor.arcoplatform.com, where the presentation is also available.

大家下午好。感謝您的耐心等待，歡迎參加 Arco 平台 2023 年第二季度收益電話會議。該事件正在被記錄。 （操作員說明）該活動還通過網絡廣播進行現場直播，並且可以通過 Arco 的網站 Investor.arcoplatform.com 進行訪問，該網站也提供演示文稿。

Now I will turn the conference over to Roberto Otero, Arco's CFO, Otero, you may begin your presentation.

現在我將會議交給Arco 的首席財務官Roberto Otero，Otero，您可以開始您的演講了。

Thank you. I'm pleased to welcome you to Arco's Second Quarter 2023 Conference Call. With me on the call today, we have Arco's CEO, Ari de Sa Cavalcante Neto. During today's presentation, we'll make forward-looking statements. Forward-looking statements generally relate to future events or future financial or operating performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those contemplated by these forward-looking statements.

謝謝。我很高興歡迎您參加 Arco 2023 年第二季度電話會議。今天與我一起參加電話會議的有 Arco 首席執行官 Ari de Sa Cavalcante Neto。在今天的演講中，我們將做出前瞻性陳述。前瞻性陳述通常與未來事件或未來財務或經營業績有關，並涉及已知和未知的風險、不確定性和其他因素，這些因素可能導致我們的實際結果與這些前瞻性陳述預期的結果存在重大差異。

Forward-looking statements in this presentation include, but not limited to, statements related to our business and financial performance, our expectations and guidance for future periods or expectations regarding strategic product initiatives and the related benefits and our expectations regarding the market. These risks include those set forth in the documents that we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission.

本演示文稿中的前瞻性陳述包括但不限於與我們的業務和財務業績相關的陳述、我們對未來時期的預期和指導或對戰略產品計劃和相關利益的預期以及我們對市場的預期。這些風險包括我們今天早些時候發布的文件中列出的風險以及我們向美國證券交易委員會提交的文件中更全面描述的風險。

The forward-looking statements in this presentation are based on the information available to us as of the date hereof. You should not rely on them as predictions of future events, as we disclaim any obligation to update any forward-looking statements except as required by law.

本演示文稿中的前瞻性陳述基於截至本新聞稿發布之日我們所掌握的信息。您不應依賴它們作為對未來事件的預測，因為除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

In addition, management may reference non-IFRS financial measures on this call. The non-IFRS financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with IFRS. We have provided a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measure in our press release.

此外，管理層可能會在此次電話會議上參考非國際財務報告準則的財務指標。非國際財務報告準則財務指標不應被單獨考慮或替代根據國際財務報告準則編制的結果。我們在新聞稿中提供了這些非國際財務報告準則財務指標與最直接可比的國際財務報告準則財務指標的調節表。

Please note that except for revenue, gross margin, selling expense, G&A and cash flow from operations, all other financial measures we discussed here are non-IFRS, and growth rates are compared to the prior year's comparable period unless otherwise stated. We also note that year-over-year comparisons are affected by acquisitions not included in our 2022 financials.

請注意，除了收入、毛利率、銷售費用、一般管理費用和運營現金流量外，我們在此討論的所有其他財務指標均為非國際財務報告準則，除非另有說明，否則增長率均與上一年可比期間進行比較。我們還注意到，同比比較受到 2022 年財務數據中未包含的收購的影響。

With that, I'd like to turn the call over to Ari, Arco's CEO.

說到這裡，我想將電話轉給 Arco 首席執行官 Ari。

Thank you, Otero. I would like to start with the highlights of the quarter on Slide 3. 2023 second quarter posted strong operating cash flow dynamics across all business verticals with consistent improvement of all important underlying cash flow driving such as operating working capital and capital allocation.

謝謝你，奧特羅。我想從幻燈片3 中本季度的亮點開始。2023 年第二季度，所有業務垂直領域都呈現強勁的運營現金流動態，所有重要的基礎現金流驅動（例如運營營運資本和資本配置）的持續改善。

Arco's Pedagogical segment comprising both our core and supplemental solutions have maintained solid operational performance in the current 2023 cycle, yielding an adjusted EBITDA minus CapEx of BRL 453 million, a 56% growth year-over-year. This represents an expansion of margin of adjusted EBITDA minus CapEx of 7 percentage points compared to the prior year cycle.

Arco 的教學部門由我們的核心解決方案和補充解決方案組成，在當前的 2023 年周期中保持了穩健的運營業績，調整後的 EBITDA 減去資本支出為 4.53 億雷亞爾，同比增長 56%。這意味著與上一年周期相比，調整後 EBITDA 減去資本支出後的利潤率擴大了 7 個百分點。

This is also a strategy of capturing efficiency gains with centralized functions while increasing operation leverage with our continued growth effectively mitigating the recent volatility in cost pressures highlighted in our previous reports.

這也是一種通過集中職能獲取效率收益的策略，同時通過我們的持續增長提高運營槓桿，有效緩解我們之前報告中強調的近期成本壓力的波動。

Our free cash flow to affirm for the Pedagogical segment in '23 cycle is BRL 205 million, up from minus BRL 81 million during equivalent period last year. The 20 percentage points improvement in free cash flow to firm represents the result of optimized working capital dynamics reducing effective tax rates and better allocating CapEx.

我們在 23 年周期中確認的教育部門的自由現金流為 2.05 億雷亞爾，高於去年同期的負 8100 萬雷亞爾。公司自由現金流提高了 20 個百分點，這是優化營運資本動態、降低有效稅率和更好地分配資本支出的結果。

Our Financial and Management Solutions segment referred to as F&M, continues its accelerated growth trajectory, posting a 104% increase in net revenue year-over-year, reflecting the segment's product market fit aligned with solid execution. This growth was accompanied by an adjusted EBITDA margin expansion of 86 percentage points, reaching minus 2.4% in this quarter. These gains were enabled by our focus on scalability and pursuit of operational efficiency with healthy delinquency levels in our portfolio.

我們的財務和管理解決方案部門（簡稱 F&M）繼續保持加速增長軌跡，淨收入同比增長 104%，反映出該部門的產品市場契合度與紮實的執行力相一致。這一增長伴隨著調整後 EBITDA 利潤率擴大 86 個百分點，本季度達到負 2.4%。這些成果得益於我們對可擴展性的關注以及對運營效率的追求以及我們投資組合中健康的拖欠水平。

I will now turn the call to Otero, who will continue the presentation. Otero, please go ahead.

我現在將電話轉給奧特羅，他將繼續進行演示。奧特羅，請繼續。

Thank you, Ari, and good evening, everyone. We'll begin by presenting the results of our Pedagogical segment initiated on Slide 6. Considering the fluctuations in revenue recognition of the orders, we strongly advise investors to analyze our business performance on a cycle-to-date basis.

謝謝你，阿里，大家晚上好。我們將首先介紹幻燈片 6 中啟動的教學部門的結果。考慮到訂單收入確認的波動，我們強烈建議投資者按週期至今分析我們的業務績效。

In the 2023 cycle, net revenue grew 18% year-over-year, reaching BRL 1.532 billion. Our Core Solutions marked 17% year-over-year growth, and Supplemental Solutions grew 24% year-over-year. As anticipated, this quarter posted lower ACV recognition compared to the second quarter in 2022. This shift was driven by our new supply strategy aimed at streamlining operations and reducing delivery count, resulting in concentrated ACV on the first quarter of each cycle.

2023年周期，淨收入同比增長18%，達到15.32億雷亞爾。我們的核心解決方案同比增長 17%，補充解決方案同比增長 24%。正如預期的那樣，與2022 年第二季度相比，本季度的ACV 認可度較低。這一轉變是由我們旨在簡化運營和減少交付數量的新供應戰略推動的，導致ACV 集中在每個週期的第一季度。

Additionally, a portion of revenue is expected to be recognized in June were deferred to July for an impact of BRL 36 million. For this reason, we are bringing P&L figures for the cycle between October and July.

此外，預計 6 月份確認的部分收入被推遲到 7 月份，影響為 3600 萬雷亞爾。因此，我們提供了 10 月至 7 月週期的損益數據。

Moving to Slide 7, we discuss the Pedagogical business' adjusted EBITDA. In the 2023 cycle up until June, our margins remained in line with the previous years despite recent cost pressure. To account for the aforementioned deferral of June ACV to July, we present cycle-to-date results up until July. Between October and July represented a 36.3% adjusted EBITDA margin up from 34.8% margin in the same period in 2022.

轉到幻燈片 7，我們討論教育業務的調整後 EBITDA。在截至 6 月的 2023 年周期中，儘管近期面臨成本壓力，但我們的利潤率仍與前幾年持平。考慮到上述 6 月 ACV 推遲到 7 月的情況，我們提供了截至 7 月的周期至今的結果。 10 月至 7 月期間，調整後 EBITDA 利潤率為 36.3%，高於 2022 年同期的 34.8%。

Our projected 2023 adjusted EBITDA margin guidance for the 2023 fiscal year of between 36.5% to 38.5% remains on track. This outlook benefits from normalized ACV recognition curve alongside the 2024 cycle growth and the implementation of new printing contracts that will impact the later half of the year.

我們預計 2023 財年調整後 EBITDA 利潤率指引將保持在 36.5% 至 38.5% 之間。這一前景受益於標準化的 ACV 識別曲線以及 2024 年周期增長以及將影響下半年的新印刷合同的實施。

Moving to Slide 8, we disclose our CapEx results. Current cycle-to-date figures show CapEx at 6.7% of net revenues, a 7.7 percentage point reduction compared to the corresponding period in the 2022 cycle. This attests to our optimized capital allocation strategy, which reflects an increased collaboration and investment coordination among our brands that continues to reflect our focus on product evolution and quality.

轉到幻燈片 8，我們披露了我們的資本支出結果。當前週期迄今的數據顯示，資本支出占淨收入的 6.7%，與 2022 年周期同期相比減少了 7.7 個百分點。這證明了我們優化的資本配置策略，反映了我們品牌之間加強的合作和投資協調，這繼續反映了我們對產品發展和質量的關注。

On Slide 9, we disclosed adjusted EBITDA minus CapEx. 2023 cycle-to-date posted 29.6% margins versus 22.4% in the previous cycle-to-date, a significant 7 percentage point expansion. We are on track for our fiscal year guidance for adjusted EBITDA minus CapEx, trending towards the higher end of the 26.5% to 30.5% margin guidance provided last year.

在幻燈片 9 中，我們披露了調整後的 EBITDA 減去資本支出。 2023 年周期迄今的利潤率為 29.6%，而上一周期至今的利潤率為 22.4%，顯著擴大了 7 個百分點。我們正在按計劃實現調整後 EBITDA 減去資本支出的財政年度指導，並趨向於去年提供的 26.5% 至 30.5% 利潤率指導的較高端。

Moving to Slide 10. We disclosed the main drivers behind the significant improvement trend in the Pedagogical business working capital cash generation. Days of sales outstanding remained flat year-over-year, while delinquency improved 1 percentage point year-over-year. On a comparative basis, we improved days of inventory by 9% year-over-year.

轉到幻燈片 10。我們披露了教育業務營運資金現金生成顯著改善趨勢背後的主要驅動因素。未償還銷售天數同比持平，而拖欠率同比下降 1 個百分點。相比之下，我們的庫存天數同比提高了 9%。

We are disclosing pro forma days of inventory due to a one-off initiative to capture better conditions in our supply chain, in which we advanced BRL 58 million to anticipate paper acquisition for the 2024 cycle with printers, guaranteeing better conditions for the next cycle.

我們之所以披露預計庫存天數，是因為我們採取了一項旨在改善供應鏈狀況的一次性舉措，其中我們預付了5800 萬雷亞爾，以預測2024 年印刷週期的紙張採購量，從而保證下一周期的更好條件。

As a result, in Slide 11, we show the consistent improvement across drivers in our Pedagogical free cash flow for cycle to date, leading our Pedagogical business for free cash flow of BRL 205 million in the cycle so far, which represents 13.4% of net revenues of the period, a BRL 286 million expansion versus the negative BRL 80 million free cash flow registered in the equivalent period in 2022.

因此，在幻燈片11 中，我們展示了迄今為止週期內教育學自由現金流的各個驅動因素的持續改善，迄今為止，我們週期內教育學業務的自由現金流為2.05 億雷亞爾，占淨現金流的13.4%。該期間的收入增加了 2.86 億雷亞爾，而 2022 年同期自​​由現金流為負 8000 萬雷亞爾。

On Slide 12, we highlight the consistent improvements over cycles.

在幻燈片 12 中，我們強調了各個週期的持續改進。

Now moving to Slide 14, we disclosed our Financial and Management segment. In the second quarter of 2023, our net revenue amounted to BRL 75 million, growing 104% year-over-year when compared to the pro forma net revenue of the second quarter last year prior to the acquisition. Accumulated net revenue for the first half of 2023 reached BRL 137 million, a growth of 116% year-over-year.

現在轉到幻燈片 14，我們披露了我們的財務和管理部分。 2023年第二季度，我們的淨收入達到7500萬雷亞爾，與收購前去年第二季度的預計淨收入相比，同比增長104%。 2023年上半年累計淨收入達到1.37億雷亞爾，同比增長116%。

Adjusted EBITDA margin in the quarter reached minus 2.4%, a very important 86 percentage points year-over-year expansion. Adjusted EBITDA margin in the first half of 2023 landed at minus 12%, an 80 percentage points year-over-year expansion. This improvement in margins is tied to scale and efficiency gains enabled by the growth and tech-enabled profile of our platform. We're confident in achieving our net revenue guidance projected to be between BRL 300 million and BRL 350 million and our minus 10% adjusted EBITDA margin guidance for the segment in this fiscal year.

本季度調整後 EBITDA 利潤率達到負 2.4%，同比增長 86 個百分點，非常重要。 2023 年上半年調整後 EBITDA 利潤率降至-12%，同比增長 80 個百分點。利潤率的提高與我們平台的增長和技術支持所帶來的規模和效率提升息息相關。我們有信心實現本財年該部門預計在 3 億雷亞爾至 3.5 億雷亞爾之間的淨收入指導以及負 10% 的調整後 EBITDA 利潤率指導。

On Slide 16, we provided a snapshot of our consolidated Arco second quarter '23 and first half '23 results, combining both Pedagogical and the Financial and Management results. Second quarter consolidated figures delivered a net revenue of BRL 471 million and adjusted EBITDA of BRL 83.5 million with adjusted EBITDA margin at 17.7%.

在幻燈片 16 上，我們提供了 Arco '23 年第二季度和 23 年上半年綜合業績的快照，結合了教學、財務和管理業績。第二季度合併數據顯示，淨收入為 4.71 億雷亞爾，調整後 EBITDA 為 8350 萬雷亞爾，調整後 EBITDA 利潤率為 17.7%。

Adjusted net income was BRL 78 million, representing 16.6% adjusted net income margin. The first half of 2023 delivered a net revenue of BRL 1.5 billion, and adjusted EBITDA of BRL 194 million, with 19.3% adjusted EBITDA margin. Consolidated adjusted net income was BRL 36 million, representing 3.6% adjusted net income margin.

調整後淨利潤為 7,800 萬雷亞爾，佔調整後淨利潤率為 16.6%。 2023 年上半年淨收入為 15 億雷亞爾，調整後 EBITDA 為 1.94 億雷亞爾，調整後 EBITDA 利潤率為 19.3%。合併調整後淨利潤為 3,600 萬雷亞爾，調整後淨利潤率為 3.6%。

Moving to Slide 17. Consolidated free cash flow for the first half of 2023 reached BRL 252 million, including ISAAC, representing 25% of net revenues in the period a 6.5 percentage points expansion versus the first half of 2022.

轉向幻燈片 17。2023 年上半年的合併自由現金流達到 2.52 億雷亞爾（其中包括 ISAAC），佔該期間淨收入的 25%，比 2022 年上半年增長 6.5 個百分點。

Turning our attention to Slide 18, we present Arco's net debt and obligations as of June. Our commitment to reducing leverage remains a focal point, enabled by organic cash generation growth. In the second quarter of 2023, our net debt over the trailing 12 months adjusted EBITDA was 3.3x.

將我們的注意力轉向幻燈片 18，我們展示了 Arco 截至 6 月份的淨債務和義務。我們對降低杠桿率的承諾仍然是一個焦點，這得益於有機現金生成增長。 2023 年第二季度，我們的淨債務較過去 12 個月調整後 EBITDA 為 3.3 倍。

To account for the aforementioned deferred of June ACV and EBITDA to July, we also present a pro forma net debt over adjusted EBITDA in the last 12 months as of July, which reached 3.1x. Going forward, we continue to deploy our balance sheet management strategy. In July, we have issued a nonconvertible debenture amounting to BRL 550 million with an interest rate of CDI plus 2.6% paid semiannually and amortized over 3 years starting in 2026.

為了考慮到上述將 6 月 ACV 和 EBITDA 遞延至 7 月的情況，我們還提出了截至 7 月過去 12 個月調整後 EBITDA 的預計淨債務，達到 3.1 倍。展望未來，我們將繼續部署資產負債表管理策略。 7月，我們發行了規模為5.5億雷亞爾的不可轉換債券，利率為CDI加2.6%，每半年支付一次，自2026年起分3年攤銷。

In July, we also have another important milestone to share. ISAAC has successfully raised a K-12 dedicated FIDC. This FDIC or receivables-backed investment fund secured BRL 112 million to be amortized in 2025. This allows ISAAC to raise capital from third parties to fund its revenue guarantee product capital requirements. The stake was oversubscribed despite the lack of a well-established track record and will boost ISAAC's growth even further.

七月，我們還有另一個重要的里程碑要分享。 ISAAC 已成功籌集 K-12 專用 FIDC。該 FDIC 或應收賬款支持投資基金獲得了 1.12 億雷亞爾，將於 2025 年攤銷。這使得 ISAAC 能夠從第三方籌集資金，以滿足其收入擔保產品資本要求。儘管缺乏良好的業績記錄，但該股份已被超額認購，並將進一步推動 ISAAC 的增長。

Taking into account these issuances in early third quarter, our pro forma cash position totals BRL 1.2 billion. This financial position confidently covers our short-term obligations, and we are confident in our cash generation capacity and future perspectives to implement a full deleveraging process in years to come.

考慮到第三季度初的這些發行，我們的預計現金頭寸總計為 12 億雷亞爾。這種財務狀況充滿信心地涵蓋了我們的短期義務，我們對我們的現金生成能力和未來幾年實施全面去槓桿化進程的前景充滿信心。

On Slide 20, we disclosed a brief process recap of our recently announced agreement to take Arco private. Upon the receipt of the initial nonbinding proposal from the bidders at $11 per share in November 2022, the Board of Directors formed a special committee consisting of 4 independent directors to evaluate the nonbinding proposal. In January 2023, the special committee retained financial and legal independent advisers.

在幻燈片 20 上，我們披露了我們最近宣布的將 Arco 私有化的協議的簡要流程回顧。 2022 年 11 月收到收購方以每股 11 美元的價格提出的初始非約束性提案後，董事會成立了一個由 4 名獨立董事組成的特別委員會來評估該非約束性提案。 2023年1月，特別委員會聘請了財務和法律獨立顧問。

In May, the special committee received a revised nonbinding proposal from the bidders at $13 per share and agreed to engage in negotiations of definitive agreements. On August 10, 2023, Arco entered into an agreement to go private in which shareholders received $14 per share in cash, 38% premium versus weighted average for 30 days prior to the initial offer.

5 月，特別委員會收到了投標人提出的修訂後的非約束性提案，價格為每股 13 美元，並同意參與最終協議的談判。 2023 年 8 月 10 日，Arco 簽訂了私有化協議，股東將獲得每股 14 美元的現金，較首次要約前 30 天的加權平均溢價 38%。

The transaction is subject to closing conditions, including, among other conditions, the authorization and approval of the agreement by the affirmative vote of shareholders representing at least 2/3 of the voting power of the company's common shares present and voting in person or by proxy at a general meeting of the company's shareholders and require regulatory approval, the antitrust.

本次交易尚需滿足交割條件，其中包括代表至少 2/3 的公司普通股投票權的股東以親自或代理出席並投票的股東對協議的授權和批准在公司股東大會上並需要監管部門批准的反壟斷。

Shareholders will receive proxy instructions for the general meeting in due time. The merger is currently expected to close during the fourth quarter of 2023 for the first quarter of 2024.

股東將適時收到股東大會的代理指示。目前預計合併將於 2023 年第四季度至 2024 年第一季度完成。

With that, we conclude our presentation. Operator, we can now open for questions. The floor is now open for questions.

至此，我們的演講結束了。接線員，我們現在可以提問了。現在可以提問。

(Operator Instructions) Our first question comes from Mauricio Cepeda with Credit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸銀行的 Mauricio Cepeda。

I have 2 questions from our side. The first is about the reestablishment of the margin equilibrium in relation to the paper, the cost of paper. So if you -- how confident you are that in the next cycle, you'll be able either to negotiate with schools, a service fee that is corresponded to the paper costs? Or if you are kind of confident that there may be an alleviation in the price of the commodity?

我們這邊有兩個問題。第一個是關於紙張的邊際平衡的重建，即紙張成本。因此，如果您對下一個週期有多大信心，您將能夠與學校談判，收取與紙張成本相對應的服務費？或者，如果您有信心商品價格可能會有所緩解？

And the second question is a little bit to get details on this delivery postponement to July if it was due to any troubles on cash -- on the cash cycle of your clients? Or if it was an internal decision about logistics or any other of internal factor?

第二個問題是，如果是由於現金問題——您客戶的現金周期出現問題，請詳細了解交貨推遲到 7 月的情況？或者這是關於物流或任何其他內部因素的內部決定？

Cepeda, Otero here. Thank you so much for the question. So on the first one, actually, we are very confident with the recovery of gross margin already in the second half coming from the better terms with printing suppliers. Actually, those contracts have already been signed, okay? And so we have an interest and visibility on the terms of those contracts. And for the first batch of deliveries, which are the ones that we sent to schools between November, December and January, the price per page printed will be down in nominal terms around 12% year-over-year in case.

塞佩達，奧特羅在這裡。非常感謝你的提問。因此，實際上，在第一個方面，我們對下半年毛利率的恢復非常有信心，這得益於與印刷供應商的更好條件。其實那些合同已經簽了好嗎？因此，我們對這些合同的條款有興趣並且能見度。對於第一批交付的貨物，即我們在 11 月、12 月和 1 月期間發送給學校的貨物，每頁印刷的名義價格將同比下降 12% 左右。

So this is a proxy of our unit cost per page printed, all in, down 12% year-over-year nominal in terms. So again, we have visibility, those are contracts that are already signed and this will impact the P&L mostly towards the end of Q3, beginning of Q4.

因此，這代表了我們每頁打印的單位成本，總而言之，名義上同比下降了 12%。因此，我們再次看到，這些是已經簽署的合同，這將主要影響第三季度末和第四季度初的損益。

On your second question regarding the revenue postponed from June to July, this is actually a very normal course of business. Sometimes, it's a decision that it comes from the school in some situations. So the school requesting to receive the packs of content in the second week. And for the reason this week moves to next move, right?

關於你提到的第二個問題，從6月份推遲到7月份的收入，這實際上是一個非常正常的過程。有時，在某些情況下這是學校的決定。因此學校要求在第二週收到內容包。因為本週將進行下一步，對嗎？

So the business operates under annual contracts. So it's very common to see the deliveries of the content moving from one week to another, and as a consequence from one month to another, and as a consequence from one quarter to another, because really it's an annual business, and that's how the schools also see the business. But I mean, as we report the earnings on a quarterly basis, sometimes we see this movements in revenue, okay?

因此，該業務根據年度合同運營。因此，很常見的是，內容的交付從一周轉移到另一周，結果從一個月轉移到另一個月，結果從一個季度轉移到另一個季度，因為這實際上是一項年度業務，學校就是這樣的還看生意。但我的意思是，當我們按季度報告收益時，有時我們會看到收入的這種變化，好嗎？

This does not coincide with cash. This has no correlation with cash necessarily. It's much more logistics or operational decision either from the company or from the school to receive the content in a certain date, okay, and we recognize the revenue as we deliver the content to the school.

這與現金並不相符。這與現金沒有必然的關係。在特定日期接收內容更多的是來自公司或學校的物流或運營決策，好吧，我們在將內容交付給學校時確認收入。

Okay. And just to clarify. So about the first question, you are more confident on the reduction of costs through negotiations, then in necessary adjusting prices.

好的。只是為了澄清。所以關於第一個問題，您更有信心通過談判降低成本，然後進行必要的價格調整。

Yes. So the minus 12%, as I mentioned to you, is the unit cost to print. And also in parallel, we are in the process of renewing ACV for the next cycle and also, of course, during the intake process for new schools. And we are targeting a high single-digit price increase to -- I mean, to prices, right? So we're going to see those 2 components contributing to gross margin, the price increase and unit cost down in nominal terms for printing.

是的。因此，正如我向您提到的，負 12% 是單位打印成本。與此同時，我們正在為下一個週期更新 ACV，當然，也在新學校的招生過程中。我們的目標是將價格提高個位數，以達到——我的意思是，價格，對嗎？因此，我們將看到這兩個因素對印刷的毛利率、價格上漲和單位成本下降做出貢獻。

Ladies and gentlemen, there are no further questions at this time. So that concludes our Q&A session. That concludes Arco's Second Quarter 2023 Earnings Call. Thank you very much for your participation, and have a great night.

女士們、先生們，目前沒有其他問題了。我們的問答環節就到此結束。 Arco 的 2023 年第二季度收益電話會議到此結束。非常感謝您的參與，祝您度過一個愉快的夜晚。