Autohome Inc (ATHM) 2018 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by for Autohome's First Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to introduce your host, Fang Liu, Autohome's IR. Ms. Liu, you may begin.

Thank you, operator. Hello everyone and welcome to Autohome's First Quarter 2018 Earnings Conference Call. Earlier today, Autohome distributed its earnings press release and you may find a copy on the company's website at www.autohome.com.cn. On today's call, we have Mr. Min Lu, Autohome's Chairman and Chief Executive Officer; Mr. Haifeng Shao, Autohome's President; and Mr. Jun Zou, Autohome's Chief Financial Officer. After the prepared remarks, Mr. Lu, Mr. Shao and Mr. Zou will be available to answer your questions. Before we begin, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the Securities and Exchange Commission. Autohome does not undertake any obligation to update any forward-looking statements except as required under applicable law. The earnings release -- the earnings press release in this call also includes discussion of certain unaudited non-GAAP financial measures. The press release contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and is available on Autohome's IR website. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will also be available on Autohome's IR website.

I will now turn the call over to Autohome's Chairman and CEO, Mr. Lu.

Thank you, Fang. Hello everyone. Thank you for joining us today to discuss our first quarter 2018 results. I'm pleased to report the strong start to the year in which our revenue excluding direct sales increased 33% year-over-year to RMB 1.3 billion. For a detailed breakdown, our media and our lead generation services revenue grew 20% and 31% year-over-year respectively, which continues to outpace the growth in the overall market. Our online marketplace and other revenue; primarily including new business of auto-financing, data products and e-commerce; increased substantially by roughly 404% year-over-year excluding direct sales in the first quarter of 2017. We are glad to see the progress and this signals that our new business are on track and our growth momentum is expected to continue throughout 2018. Also adjusted net income during the quarter grew 42% year-over-year to RMB 520 million representing an adjusted net margin of 40%.

Now let me go over the 3 key factors that [drove] our media and our lead generation business strengths. Firstly, we are able to continue expanding high quality traffic. During the first quarter of 2018, the number of average daily unique visitors who accessed our primary application Autohome increased by 34.5% year-over-year to reach 10.1 million according to the Quest Mobile. Currently the newly activated users of Autohome app has reached 250,000 on a daily basis. We are glad to see continued healthy traffic growth in mobile and rapid traffic ramp up in newly launched channels and products such as youth forum and short video. As a result of these efforts, our mobile advertising revenue grew 58% compared to the same period of last year accounting for almost 52% of our media service revenue. This is very essential for effective advertising and it's driving automakers and dealers to select Autohome as the primary digital marketing platform. For example, in the first quarter penetration of the premium package subscription for dealers have expanded to 74%.

Secondly, our relentless focus in broadening content with better driven customization, parallel intelligent recommendation and targeted user group for launches such as EV channels, youth forum, online and offline social activities in the CheYouQuan. For example as of March 2018, our enriched PGC content has over 6,000 active professional contributors. As another example, as of March we had over 54,000 groups of CheYouQuan, characterized by auto owners, interests and localities, spanning across over 320 cities. This further enhanced overall SNS content and user interaction with various offline activities. I believe we are delivering the best user experience in the market by devoting significant resources towards expanding contents breadth and depth, which will enhance user stickiness, support user loyalty, increase retention and reduce user acquisition costs.

The final key factor is our advanced technology development, especially in expanding AR/VR-enabled ecosystem. Now for the recent Beijing International Auto Show, we are able to seamlessly link OEM's of VR car models displayed within OEM VR exhibition halls to relevant dealers VR showrooms in delivering the most comprehensive experiences for the online visitors. During this AR Auto Show, 21 branded automakers displayed over 100 automobile styles attracting over 41 million unique visitors and over 200 million views, linking close to 6,500 dealers' VR showrooms nationwide. Our AR Auto Show is proven to be capable of connecting potential consumers with strong demand in low tier Chinese cities, which is precisely the total solution automakers and dealers are seeking in branding, acquiring high-targeted traffic and effective leads.

Next let me provide some updates on our new business initiatives, which are on track in driving our growth target for 2018.

First, for auto-financing business. During the first quarter, we facilitated RMB 2.1 billion consumer and merchant loans and had accumulated 2.5 million consumer accounts as of March. In addition, we issued over 80,000 credit cards co-branded with Ping An Bank in this quarter and became Ping An Bank's largest online credit card issurance channel. Besides auto financing, we're trying to further expand our insurance business in 2018 now that we have acquired a relevant insurance brokerage license in the later part of 2017.

Secondly, for data products serving OEMs and dealers, we are pleased of the steady acceptance in the marketplace. Currently over 10 OEMs and over 5,300 dealers have signed contracts for some combination of our data products. We received very solid feedback from our clients. As an example, our intelligent marketing data tools has gained quite a bit popularity as it leverages more comprehensive user profile and behavior data, in order to significantly enhance leads to store-visit conversion, thus increasing dealers' call center efficiency, CRM management and setting a new industry standard.

Finally, as for the new car transaction platform, we have expanded to 6 Chinese provinces by end of March. In terms of used car business, our SaaS infrastructure deployed in 2017 has already covered over 35,000 used car dealers, enabling these dealers to outperform in various services. For example in the first quarter, by collaborating with Ping An Bank, we are able to offer very competitive merchant loans products to the used car dealers who work with us, resulting in total credit line of RMB 2.7 billion granted to about 750 used car dealers for the first quarter. We plan to continue to further enable used car dealers with enhanced car sourcing, effective sales leads generation and wider array of financing report -- support.

To conclude, our better-than-expected results during the quarter demonstrate the positive impacts of our strategic focus on best-in-class user experience, expanded portfolio of mobile services and advanced technology development. This creates an accelerated and a sustainable network effect, which is fueling the growth of both core and the new business pillars.

With that, I will now turn the call over to our CFO, Jun Zou, for a closer look at our first quarter financial results and our business outlook.

Thank you, Min. Hi everyone. As Min has already highlighted, we are very pleased to report another strong quarter. But before I start, let me mention that starting first quarter 2018 given the continued growth of our new businesses such as data, we have elected to revise the presentation of our revenue segments for better transparency. Primarily "online marketplace and other revenue" will now include the revenues from new and used car marketplace, auto financing business, data products and aftermarket services. The impact on the other 2 revenue segments of "Media services" and "Lead generation" are minimum. In addition, as a reminder, in the first quarter of 2018, we have also adopted the revenue recognition accounting standard ASC 606, which changed presentation of value-added tax from gross basis to net basis. Compared to presentation on gross basis, the revenue under net basis for the first quarter of 2018 was around 9.5% lower.

Now I'll continue the quarterly reporting using these revised revenue presentations including the first quarter of 2017, and please note that I will reference RMB only in my discussion today.

Net revenue for the first quarter was 1,288 million representing 33% year-over-year increase excluding direct sales. This was above the high end of our original guidance. For detailed breakdown, media and leads generation revenue for the first quarter was 584 million and 611 million, up 20% and 31% on a year-over-year basis respectively.

Online marketplace and other revenues were 93 million. Excluding direct sales in the first quarter of last year, it increased substantially by 404% on a year-over-year basis. A significant part of these revenues were generated from auto-financing and data product. So, we are very pleased of the progress of these new initiatives so far into the year.

Moving on to cost. Cost of revenue decreased 58% year-over-year to 146 million, which resulted in gross margin increase to 89% in the first quarter of this year. If excluding the cost of direct sales in Q1 last year, cost of revenue increased by 24% year-over-year, which is lower than our topline growth thanks to our optimized cost in monetization efforts.

Now for operating expenses. Sales and marketing expense in the first quarter increased by 30% year-over-year to 398 million. But as a percentage of revenue excluding buyout, it is actually still slightly lower both on a year-over-year and a sequential basis. This was primarily due to an increase in offline execution, branding expenses as well as salary and benefits. P&D expenses were 229 million, up 21% year-over-year. Again, this reflects our R&D headcount increase in the last few quarters and is proof of our commitment to technology and hiring talent. Now finally, our general and administrative expenses were 63 million, slightly up by 4% on a year-over-year basis.

As a result, we delivered operating profit of 523 million, a significant increase of 46% year-over-year, primarily as a result of increased operational efficiency and effective cost control. Adjusted net income attributed to Autohome Inc. was up 42% year-over-year to 520 million.

Non-GAAP basic and diluted earnings per share and per ADS for the first quarter were RMB 4.43 and RMB 4.36 respectively, compared to RMB 3.18 and RMB 3.13 respectively in the corresponding period of last year.

As of March 31, 2018 our balance sheet remained very strong with cash, cash equivalents and short-term investments of close to 8.0 billion. We generated operating cash flow of 421 million in the first quarter of this year.

Now let me address our second quarter 2018 outlook, which reflects our current and preliminary view on market and operating conditions that may be subject to changes. Now at this point, we expect to generate net revenue in the range of 1,780 million to 1,800 million. If we exclude the impact from our direct sales business, this represents a 29.6% to a 31.1% year-over-year growth.

In summary, we're very pleased with our first quarter 2018 results. Together as a team, we again achieved a excluding buyout revenue growth of 33% and delivered 48% net profit growth year-over-year. More importantly, our new business initiatives are also gaining market acceptance with revenue contribution, which will help drive our sustainable growth into the future.

With that, we're ready to take your questions. Operator, please open the line for Q&A.

[Operation Instructions) Your first question comes from Eddy Wang from Morgan Stanley.

I have 3 questions. First of all is regarding to the online marketplace and other business. Can you give us some color on the growth of -- such as auto-finance, auto insurance, data products revenue growth guidance of -- in this year? I know management have highlighted (inaudible). So, my second question is related to this year that we noticed that the OpEx ratio actually increased in the first quarter compared with fourth quarter last year. So, what's your guidance of this -- of this year? And third question is about the headcount, I noticed that headcount at the end of this first quarter actually declined quarter-over-quarter compared with end of last year. Would you please explain why is the reason of the decline? Thank you.

Eddy, I think you are breaking up. We didn't quite hear your last question.

Yes, last question, let me repeat. The last question is about the headcount. So at the end of first quarter it's seems to have declined compared with at the end of last year. So I just want to know what the reason behind this and is there any color on the trend in this year?

(foreign language) Talking about the new business, we are referring 2 pieces. One is about auto-financing and also financial related business. The second are data related business. (foreign language) Now talking about auto financing, as we mentioned, the total transaction is about RMB 2.1 billion and I think in the future we are going to further grow this number and the key is we have to drive the volume of our platform for the used car business. If we drive the volume of the used car business transaction up, then I think this number would further grow. (foreign language) Now talking about the auto insurance business, as you know, there are some regulatory updates and changes in the market. Before the new regulation, no offers are allowed and we heard that the Chinese Banking and Insurance Regulatory Commission is going to free the premium policy in 3 provinces. If this policy get introduced to the market, that would further expand our auto insurance business. (foreign language) Now the second piece that I want to echo is the data product. We already signed a contract with 10 OEMs and 5,300 dealers. (foreign language) While this is only just getting started and as the real number is actually bigger than this one because according to our financial and accounting principle, we have to amortize the newly signed contracts into 12 months. So that's why in terms of financial current system, we have to do such amortization. So, that's why the real number is bigger than we quoted. (foreign language) As we had different relationship with OEMs and dealers, we would understand better how to serve them with our data products. (foreign language) So on one hand, we are making ourselves. On the other hand, we are also getting to know our customers better and we are developing our next generation data products to better serve the dealers and OEMs. (foreign language) As you know, Q1 is just as what we have quoted the numbers and we do have a great hope for this kind of 2 pieces from new business would become our traditional business that will grow as big as our traditional business. (foreign language) Now I want to echo with your third question, which is the headcount. Actually comparing with the end of last year in terms of the headcount, we have 100 people less. I think this is quite normal turnover rate for the Internet business. Usually our Internet business after the staff members get their annual bonus, they would leave and we are also recruiting new members in to our team. On the other hand, we are trying to control our headcount in a strict way. As I said last year, if we expand our headcount, I think some of the revenue and profit would be eaten by the growing headcount. So, that's why we want to control a small sized headcount. (foreign language) If you look at our financial statement, you will see that last year -- end of last year we have offered very good bonus to our staff members. So, that's why the employees are really very happy to receive this good bonus. (foreign language) We don't worry about recruiting our staff members so in terms of HR, there's no worry. (foreign language)

Eddy, as for operating expense, we have mentioned in the past that we believe this year we'll try to maintain our operating margin very similar to last year's level, excluding direct sales business. And in the meantime, I believe we would try our best to achieve operating leverage even though we will also continue to spend to grow our new business. But let's say the bottom line is that we'll at least try to maintain our margin profile similar to that of last year. And just to add on to Min's answer to question 3, I think for this year we'll try to limit our headcount to sort of by single digit compared to the end of last year and most of the addition should be on the P&D side.

(Operator Instructions) Your next question comes from Liping Zhao from CICC.

(foreign language) I have 2 questions. So, first question is related to the insurance business. Could the management elaborate the business model for insurance segment and what's the take rate for the business? And my second question is related to financials. The first one is regarding the growth in the other income, is it related to the standard adjustment? And then second question is about the OEM revenues so how many OEM clients were there in the first quarter? Thank you.

(foreign language) Now let me answer the question about our business model for the auto insurance business. Our auto insurance business in Q1 is still a traditional insurance business model, the subscribers who purchased insurance under subscribed premium from the Autohome app. (foreign language) Actually we do not enjoy advantages as offline sales because online sales we are not allowed to generate offer. (foreign language) As our President just mentioned, there are new regulatory changes released by the regulators, which they are going to select 3 provinces as pilot province to start reforming of the online premium subscription, they would allow offer for the online insurance subscription in 3 provinces. (foreign language) The purpose of such regulatory change is try to reform the online insurance market, which offer declines with a better premium if they subscribe online. Actually it's like a unified standard for online and offline offering and if the insurer doesn't have any accident, they can enjoy a better premium.

(foreign language) Actually in terms of this regulatory change, how would it affect our insurance brokerage business, I think there are both benefit and also disadvantages. Now talking about the benefit, I think the business transaction volume and user number would both grow. (foreign language) However, such policies, the government just announced the framework. They haven't started the releasing of such policy yet. So implementation which they have to wait and also due to the government timetable, they are going to select 3 provinces to start this new policy. And for those 3 provinces, their insurance business only accounts for 5% of the national total.

So now Liping, I will answer your second question. The first part of the second question, yes, auto income increase is related to actually the accounting policy change. Now in ASC 605 we actually have booked a [13%] tax rebate from our lead generation business as a cost reversal to offset our cost. And now under the new policy ASC 606, we booked that as -- we firstly booked actually the revenue from lead generation on a net basis after the [17%] VAT and then we booked a tax rebate under other income. So yes, that's related to the accounting policy change. And as for the second part of your question, the OEM customers. In the past quarter we still had 90 OEM customers, similar number to that of last year.

(Operator Instructions) Your next question comes from Miranda Zhuang from Merrill Lynch.

I have 1 question about our strategy to penetrate into lower tier cities. I want to know the company's strategy in terms of acquiring the dealers and the users in the lower tier cities? Thank you. (foreign language)

(foreign language) Thank you for the question. If you look at Q1, the auto sales in the lower tier cities, they are growing. (foreign language) Now we are getting ready for 2 things. First one, we are trying to build up our branding in the lower tier cities. (foreign language) To build up the branding image, that's why we subscribed to the CCTV advertisement for Autohome. (foreign language) We worked with CCTV channel 1, channel 5 and channel 6, which enjoy good viewing in the lower tier cities. So, we want to try this out to see which one would be more effective to penetrating into the lower tier cities. (foreign language) And also we hired an ambassador, which is a celebrity ping pong ball player in China and he just won the ping pong champion for the Group Champion yesterday in an international competition. His name is Fan Zhendong. He has become our ambassador. (foreign language) He's very young, he's only 21 years old and now he's ranking in the world is #1. (foreign language) Again last week he's just world champion for the ping pong games and which enjoy a very high penetration rate for viewing for CCTV 5. (foreign language) Now the next thing is we have established AR Auto Show during the Beijing Auto Show, which is very successful. (foreign language) The Beijing Auto Show is a large and massive scale auto show, but we're also trying to generate leads and also to convert the leads into sales. (foreign language) So we want to bundle online plus offline, we want to connect both sides. So in this way, for online we can generate traffic and divert the traffic into lower tier cities and we also provide the lower tier city sales opportunities. In this way we can combine online offline sales. (foreign language) Talking about the dealership, the dealers in the lower tier cities, they all have a collaboration with us.(foreign language) In summary, by building our marketing strategies and branding as well as combining the offline channels with online channels, we're trying to get higher penetration into the lower tier cities and try to help the lower tier city users to get the car which they want to buy. Thank you.

Can I ask just one very quick follow-up? So, can you remind us the mix of the users and dealers from lower tier cities in Autohome?

(foreign language)

So, you're referring to like the customer -- percentage of customer from lower tier cities?

Yes. (foreign language)

(foreign language) Talking about the dealer --. We work with basically all the dealers. Out of this 28,000 dealers, we work with 26,000 dealers and we also work with tier 2 sales networking dealers. In terms of the users, I think the lower tier city users account for basically half of our users.

Your next question comes from Monica Chen from Credit Suisse.

I have one question regarding our online marketplace business. So I was trying to understand our target for our auto-financing business loan balance or our auto transaction volume target by the end of this year for each of the customer loan and the merchant loan respectively. And also, any of our customer target for the OEM and dealer data products for this end of this year? (foreign language)

(foreign language) Talking about the target, we do have internal KPI in our targets, but I'm not in a convenient position to quote this target to the external analyst. We want to achieve beyond -- even beyond this target. This is the very first time for us to do such new business so even if we have a target, this may not 100% be accurate. But what we are trying to do is we want to try our best to exceed our internal target. (foreign language) Talking about our financial business, I think the key is if we drive the transaction volume in a closed loop transaction, I think the business volume would go up. (foreign language) For example, the used car transaction already occurred in our closed loop transactions, (foreign language) especially the C2B. (foreign language) Now talking about B2C business, this is relatively speaking more complex than C2B and also we need to deploy more POS machines to a lot of cities. About May or June, we are going to make a new release about the B2C business. (foreign language) Now talking about the data products, we already gained feedback -- very positive feedback from customers. So, we would continue to come up with our further development of the next generation data product offering. (foreign language) During the May's auto show, the Dongfeng Automotive Group already signed a long-term contract with us. Although that is strategic collaboration contract with us, a major piece of that was the data service. (foreign language) And in May, there's another OEM which is going to sign the strategic collaboration agreement with us. There are further OEMs who showed their interests. (foreign language) So hopefully, we can be more interactive with our customers and we can come up with better data products for the OEMs. Thank you.

Your next question comes from Hillman Chan from Citigroup.

(foreign language) So, my first question is on the data product for the OEM. So, could management share more color on which specific product and targeting which product value chain is more popular among the OEM customer and the rough price range for that? And the other question is about the competition, so how the management see the competition from them? And lastly is on the auto loan. Could management share more colors on the difficulties we face during the process related to the customer engagement, dealer partnership, integration (inaudible) and how you expect to improve going forward? Thank you very much.

(foreign language) Now I want to echo with the first question, which is about data product. We have data products targeting at OEM as well as targeting at the dealers. (foreign language). We are now pushing forward both pieces of business. (foreign language) Now your question is focusing on the OEM data product. Actually we have multi-offering in terms of the data products to OEMs. Generally speaking, there are different categories; for example the data products related to R&D. (foreign language) The second category is about strategic collaboration and competition. (foreign language) A lot of OEMs, their big boss come to our showroom and they can witness what kind of strategic competitive edge of them comparing with the competitors each day or each week or each month. (foreign language) And the third category is about marketing and sales. We do have a sales show for them to see how clearly they can make the conversion from leads to actual sales. (foreign language) In the sales funnel, they can see that how many people showed interests and how many leads are there, so that's why they can clearly understand for their car model under some of the brand what are the difficulties they're facing and what are the areas people showed great interest in. (foreign language) So in this way if they deepen their collaboration with us, we can help the OEMs to make a higher conversion rate along different layers of the sales funnel. (foreign language) They can also make comparison with competitors and also to compare the competitive car models which are better, which are worse so in this way, they would have a clear competitive perspective over the market. (foreign language) And also it's related to improving the quality of the product. For example, we have lot of user generated data and user generated comments about some of the car models and we would come up with a template with all the user generated comments. As as a good feedback for the OEMs to improve the quality of their products. (foreign language) For the latter half of the year, we are going to launch a service-oriented model for them so in this way they would understand how good are the sales and the service quality online, which is quite important for the OEM. (foreign language) So, thank you. Due to time limit, so that's all for question #1. (foreign language) So actually we have a lots of product offering to our OEMs, but due to time limit, I have to stop here. Now echoing the second question, our comments on our competitors like Dongchedi. (foreign language) As you know, we are in a competitive business and we are getting used to such competition. (foreign language) And each of the player in the market does have their own unique way to do the business. (foreign language) For Autohome, no matter who are our competitors, we are very much willing to learn from them. (foreign language) Meanwhile, we would keep focusing our core competency and try to strengthen our core competency. (foreign language) So, I think our best wish is no matter which platform or which app our user may go to, but when they finally try to purchase a car, they would come to Autohome. (foreign language) So we do have a slogan which says, Viewing, Selecting, Buying a Car, Welcome to Autohome. (foreign language) Purchasing a car is very different of buying a commodity or daily consumption products. (foreign language) Usually before they makes the purchase, they would spend 3 months surfing the internet for information. (foreign language) Then they would taken another month to shop from the (inaudible) stores. (foreign language) So, Autohome do enjoy core advantages. We have very professional content as well as big data offered to our customers. (foreign language) So we would help the users to get to know about the car, to view the car, to understand the car, then purchase the car. For the latter half of the year, we will also help the users to use the car well. (foreign language) These 3 pieces are meeting the core demand of our customers. (foreign language) On the 10th, we're going to issue a new addition of our new app, which we will provide 7 steps guidance to purchase a car, which is like writing a Chinese poem in 7 steps. (foreign language) In summary, we want to keep and further expand our core competency in the market. (foreign language) Hopefully the users when they trying to select the car -- real car,purchase car and user car, they would always come to Autohome. (foreign language) Now talking about auto-financing, I think the key is we want to be Internet based. We also want to meet with the bank's risk management core requirement. So that's why when talking about collaboration with Ping An Bank and other financial leasing company, we already established the standard and process for risk management and for the whole auto-financing business. (foreign language) Now we are also expanding such business. And for Ping An bank, they are trying to accumulate experiences, especially in risk management experiences. After we accumulated enough experience, I think we would quicken the steps in further expanding this business.

Our next question comes from Wendy Huang from Macquarie.

I Just have few follow-up questions. First is, we have seen the tightening regulation in China's social networking and also advertising space, some of the players such as Toutiao they got hit. So, this question is not really about the specific competition from Dongchedi, it's more about whether there has been any auto budget shift that you observed actually shifted from the Toutiao or to actually Autohome overall online auto space? And second, you mentioned earlier that the integration with Ping An Bank has been quite smooth recently, so can you elaborate a little bit on that? And also how well or how has Autohome already actually leveraged Ping An's 1.4 million insurance agent on the ground to develop your business? Thank you.

(foreign language) Now to answer your first question, well, if you look at Q1 the auto -- actually the auto sales growth in China is not very strong, it's within 3%. (foreign language) We do see the slowing down of the growth if we compare this number with few years back, which was double-digit. (foreign language) But we are happy to announce that in Q1 in terms of OEM media service, we have more than 20% growth. (foreign language) So this growth was quite good even if we compare the data with the good years, which the growth was double-digit for auto market. (foreign language) We understand the competition are always there and it's hard to tell who took whose market share, but what we want to focus is try to create better value for our customers. (foreign language) So, we are dedicated and focused on our core competency including our data service business. I think we would have very good collaboration with more and more OEMs. (foreign language) Now talking about the collaboration with Ping An Bank, we have a few business collaborating with them. (foreign language) The first one is credit card business. (foreign language) Secondly, auto-financing. (foreign language) For the 1.4 million agents of the life insurance under Ping An Bank, they help to generate C1 and C2 lease for used car. (foreign language) Thank you.

There are currently no more questions in queue. I'd like to hand over the call back to our speaker today. Please go ahead.

Thank you very much for joining us today. We appreciate your support and we look forward to updating you on the next quarter's conference call in a few months' time. In the meanwhile, please feel free to get in touch with us if you have further questions and comments. Thank you.

Thank you, sir. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.