Autohome Inc (ATHM) 2022 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by for Autohome's Third Quarter 2020 Earnings Conference Call. (Operator Instructions). It is now my pleasure to introduce your host, Sterling Song, Autorhome's IR Director. Mr. Song, please go ahead.

Thank you, operator. Hello, everyone. I'm Sterling Song, and welcome to Autohome's Third Quarter 2022 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 Chairman and Chief Executive Officer, Ms. Quan Long; and Chief Financial Officer, Mr. Craig Zeng with us. After the prepared remarks, our management team will be available to answer questions. Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions 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 not unlimited to those outlined in our public filings with the U.S. Securities and Exchange Commission and the stock exchange of Hong Kong Limited. Autohome doesn't undertake any obligation to update any forward-looking statements, except as required [under] applicable law.

Please also note that Autohome's earnings press release and this conference call include discussions of certain unaudited non-GAAP financial measures. Please refer to our press release which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and is available on Autohome's IR website.

Again, as a reminder, this conference is being recorded. In addition, a live and archived webcast of this earnings conference call will also be available on Autohome's IR website. Now I will turn the call over to Autohome's Chairman and CEO, Ms. Long, for opening remarks. Please go ahead, Ms. Long.

(foreign language) [Interpreted]. Thank you, everyone. Thank you, Sterling, and hello, everyone. This is Quan Long, our Chairman and CEO of Autohome. Thank you for joining us today in our third quarter 2022 earnings conference call.

(foreign language) Interpreted We are pleased to report a strong operational performance in the third quarter, building on our vigorous recovery momentum from the first half of 2022. Our total revenues for the third quarter were RMB 1.843 billion, up 4.5% year-over-year, and the media service revenue surged by 28% year-over-year. Adjusted net income attributable to Autohome was RMB 590 million, returning to positive growth with a year-over-year increase of 1%. Adjusted net margin was 32%. Since the beginning of this year, China Central government has introduced a series of economic stimulus policies targeting the auto industry in an effort to unleash relevant consumption potential. Also, the abolishment of used car circulation restrictions has helped to release the bottleneck hindering growth in the used car industry. With this policy changes along side effective measures to contain the spread of the COVID-19, China's passenger vehicle sales recovered rapidly in the third quarter with a total of 5.69 million unit sales or 23% year-over-year growth.

(foreign language) Interpreted Despite the impact of the pandemic, the auto industry remains a key pillar of the national economy. Auto is a daily necessity in people's lives and given automotive typically long life cycle as well as prolonged support from the government. The auto industry still possesses tremendous growth potential as China's auto consumption level and the demand for upgrades continue to increase. to address challenges head on Autohome visited customers listened to their demand and actively adjusted our business models to provide effective solutions to address their pain points.

After a brief business adjustment in the past few quarters, we bottomed out and achieved a V-shaped rebound in the third quarter. We have now returned to a driving year-over-year growth trends and are maintaining good (technical difficulty) and we delivered solid results to the market.

(foreign language) Interpreted For agencies or state to time. With that, I will now turn the call over to our Chief Financial Officer, Craig Zeng for closer look at our third quarter operating and financial results. (foreign language)

Thank you Quan Long. Hello, everyone. I'm Criag Zeng, the CFO of Autohome. First, I'd like to give you an overview of our traditional business.

(foreign language) [Interpreted] For the third quarter, our media service revenue reached RMB 556 million, returning to positive year-over-year growth for the first time up over a year's continued adjustment. This accentuates Autohome's leading position and a stable market share in the auto media vertical sector. Our excellent performance is mainly attributable to 2 factors.

(foreign language) Interpreted First, we embrace changes and proactively pursue innovation to upgrade our traditional business. For example, to overcome the pandemic’s impact, we applied VR and other advanced technologies to our car searching tools and held online auto shows for customers to reach potential buyers more effectively, which also generated additional traffic for Autohome's platform. In the first nine months of this year, we have held 305 online auto shows, covering over 500 million people nationwide and offering users a seamless experience of searching and choosing cars anytime, anywhere. Normalizing online auto shows has effectively altered users’ perception, improved their experience and helped customers to navigate the tough business environment. Our online auto shows have received high praise from both users and our OEM customers, resulting in great improvement in our media business.

(foreign language) Interpreted Second, we concentrated our resources on fortifying our competitive advantages and enhancing our industry presence. For example, Autohome initiated the 818 Super Auto Show, the world’s most popular IP in the auto media sector, and has held the show annually for four consecutive years. This year, we not only devoted more resources to the show, but also collaborated with CCTV media platform to more effectively promote OEM's brands and products, accelerating the pace of digital transformation across the auto industry. This year’s 818 Super Auto Show generated over 16.4 billion exposures across the entire network and over 1 billion short video views, exemplifying the unprecedented level of Autohome's brand influence in the auto media vertical industry.

(foreign language) Interpreted The increased media exposure goes hand in hand with our continued advancements in content creation as well as our ongoing efforts to build our core IPs, through which we have constructed a useful and [fun], video-based content ecosystem. For instance, in our pursuit of content innovation, we signed a contract for the industry’s first hyper-realistic metahuman, Gong Jiuyu. Thus far, her [videos] have garnered over 100 million views across the entire network and her debut generated enthusiastic responses among our users.

Additionally, in the first three quarters of 2022, our four original IP series, including [Travel Journal, among others] have accumulated over 236 million views on Autohome’s platform and over 372 million on the entire network, demonstrating our growing influence.

In the future, Autohome will introduce additional [network] features, virtual assets and other interesting elements to our portfolio to further upgrade the quality of our video-based content ecosystem, encouraging greater participation and deeper engagement, especially among younger users.

(foreign language) Interpreted This series of efforts to strengthen our user content bolstered our ability to deliver long-term, steady traffic growth. According to QuestMobile, Autohome’s aggregated average daily active users achieved its fifth consecutive month of accelerating growth in September, soaring by 13.4% year-over-year to [49.56] million. Furthermore, our mobile App's DAU was over 12.83 million, greatly exceeding the industry level and affirming our industry-leading position.

(foreign language) Interpreted Now, let's look at our leads generation business, where revenue witnessed an accelerated growth trend in the third quarter with year-over-year growth of over 5%, surpassing the growth rate for the first two quarters of 2022. Moreover, the quarter-over-quarter growth rate was over 7%. In terms of the number of our customers, in the third quarter, over 13,000 dealers purchased our premium version and over 7,000 dealers purchased our tech version, for a combined total of over 20,000 dealers purchasing high-end versions of our leads subscription packages. This represents an increase of over 1,200 dealer-clients, or 6.5% growth compared to the second quarter. The steady increases in both revenue and number of customers once again illustrate our ability to deeply empower our clients' businesses. Moving forward, building on our excellent product capabilities, we will continue to expand our product pipeline and increase R&D input as we endeavor to holistically fulfill our customers’ needs with upgraded products and services.

(foreign language) Interpreted Turning to our new initiatives, we continued to execute our development plans and accelerate the realization of our second growth curve. Whether we look at our [NEV] business representing the direction of the future, our used car business with the vast growth potential [or] our digital product business empowering our customers, we have made significant progress and achieved substantial advancements.

(foreign language) Interpreted First, let's look at NEVs. Facing the continuous evolution of the NEV market's structure and increase in NEV’s penetration rate, Autohome adapted proactively and led the market's transformation by pioneering a unique, multi-brand retail model, Energy Space. Offering 3D holographic virtual car viewing followed by test driving services across a broad swath of China’s NEV brands, makers and models, Energy Space provides a one-stop service for selecting, test driving and purchasing cars which completely subverts the traditional, time-consuming car buying experience and solves users' pain points. Energy Space has not only helped us stay ahead of market, it has also drew attention from other NEV automakers to look at Autohome in a whole new light. In September, we unveiled our first offline experience store in Shanghai, attracting great attention across the industry. In the future, Autohome Energy Space will increase its presence in top tier cities and steadily expand into lower tier cities, covering more NEV brands and models. By building ecosystems that benefit all parties, Autohome will continue to contribute to the fast growing and prosperous Chinese NEV industry.

(foreign language) Interpreted Notably, during the quarter, we signed an exclusive strategic partnership with the Beijing Institute of Technology Xinyuan Information Technology Co., Ltd. Going forward, the two parties will conduct in-depth cooperation in various areas such as NEV data applications. This cooperation will empower Autohome with valuable data sources to develop more digital products and services supporting NEV sales and marketing, improve valuation mechanism for used NEVs, and broaden our NEV business' growth prospects.

(foreign language) Interpreted In the Q3, revenue generated from NEV brands continued to grow vigorously and increased by 140.7% year-over-year, once again outperforming the industry's sales growth overall.

(foreign language) Interpreted Next, the used car market. With this year's positive changes in governmental policies, China is undoubtedly the world’s fastest-growing and highest-potential used car market. To make the most of this opportunity, we continued to consolidate resources across TTP, Ping An Group and Autohome to gain a competitive edge and propel development of our one-stop used car transaction platform. For used car sellers, our "Trade-in Go" product, which targets users looking to trade in their used cars and purchase new one, has proven attractive for OEMs seeking ways to reach potential new car buyers.

We have already established collaboration with 22 brands and received positive feedback. For used car buyers, we provide a standardized, one-stop service for searching, buying and using cars, realizing the industry's first iteration of one-stop car buying plus test driving services and delivering a smooth and convenient user experience. In addition, we continued to make progress with our certified used car system and have rapidly increased the number of certified used car sources on our platform, creating more leads and transaction opportunities for both used car dealers and car buyers. Going forward, Autohome will accelerate implementation of business innovations to establish a full used car ecosystem covering upstream, midstream and downstream players, augmenting our competitive advantages while contributing to overall industry development.

(foreign language) Interpreted We continued to deepen business synergies with TTP in the third quarter. Through our matching and auction services, our platform accounted for around 21% of all used car transactions in China in the third quarter, with (inaudible) year-over-year growth and we expect its operating conditions will continue to improve going forward.

(foreign language) Interpreted Lastly, on the data products front, dealer data products continued their healthy growth trend in the third quarter, with revenue surging by 37% year-over-year and the number of clients up by 5% quarter-over-quarter and 16% year-over-year to over 19,800. During the first nine months of 2022, the average number of data products adopted by each dealer store and the average revenue per dealer store increased vastly, by 31% and 20% year-over-year respectively. On top of that, we have successfully capitalized on opportunities brought by the auto industry's digital transformation as part of our continuous efforts to upgrade our products. Presently, Autohome has established in-depth collaboration with 48 mainstream automakers, which will continue to support and accelerate Autohome's second growth curve.

(foreign language) Interpreted To summarize, despite an uncertain macroeconomic environment, we are pleased to have achieved extraordinary results in all three of our business segments, extending our recovery momentum since the first half of 2022. As one of the leaders in China's auto industry, Autohome has focused on two main strategies over the past year: first, we are actively advancing our ecosystem approach, consolidating resources with Ping An Group to build a one-stop, full-chain Autohome platform that provides comprehensive services for auto users. Meanwhile, we are deeply invested in the industry's future and committed to leading industry-wide innovation by continuously cultivating our innovative business segments. Backed by our strong business foundation and brilliant financial performance, Autohome will foster digital transformation in the industry, creating lasting value for all of our stakeholders with outstanding performance that navigates market cycles.

(foreign language) Interpreted Next, let me walk you through the key financials for the third quarter of 2022. Please note that, as with prior calls, I will reference RMB only in my discussion today unless otherwise stated.

(foreign language) Interpreted Net revenues for the third quarter were 1.84 billion, up 4.5% year-over-year. For a detailed breakdown, media services revenues came in at 556 million, an increase of 28.0% year-over-year; leads generation services revenues increased 5.3% year-over-year to 809 million, and online marketplace and others revenues were 478 million.

(foreign language) Interpreted Moving on to costs: cost of revenues in the third quarter was 331 million, compared to 281 million in Q3 2021. The increase was primarily attributable to our continuous investment in content. Gross margin in the third quarter was 82.1%, compared to 84.1% in Q3 2021.

(foreign language) Interpreted Turning to operating expenses. Sales and marketing expenses in the third quarter were 863 million, compared to 712 million in Q3 2021. The increase was primarily attributable to the escalation of marketing and promotional spending. Product and development expenses were 387 million, compared to 364 million in Q3 2021. The increase was primarily attributable to greater investment in research and development activities for digital products. Finally, general and administrative expenses were 136 million, compared to 111 million in Q3 2021.

(foreign language) Interpreted Overall, we delivered operating profit of 192 million in the third quarter, compared to 365 million in the corresponding period of 2021. Adjusted net income attributable to Autohome Inc. was 590 million in the third quarter, compared to 583 million in the corresponding period of 2021.

(foreign language) Interpreted Non-GAAP basic and diluted earnings per share in the third quarter were both RMB1.18, compared to both RMB1.15 in the corresponding period of 2021. Non-GAAP basic and diluted earnings per ADS in the third quarter were RMB 4.73 and 4.72, respectively, compared to RMB 4.61 for both in the corresponding period of 2021.

(foreign language) Interpreted As of September 30, 2022, our balance sheet remained very strong with cash, cash equivalents, and short-term investments of RMB 21.34 billion. We generated net operating cash flow of 541 million in the third quarter of 2022.

(foreign language) Interpreted On November 18, 2021, our Board of Directors authorized a share repurchase program under which we may repurchase up to $200 million of Autohome's ADSs for a period not to exceed 12 months thereafter. As of October 31, 2022, we have repurchased approximately 3.51 million ADSs for a total cost of approximately $106 million. On November 3, 2022, our Board of Directors authorized an extension of the share repurchase program for another 12 months, expiring on November 17, 2023. Autohome's stable long-term operations, healthy cash flow, and ample cash reserves, as well as our active stock repurchase program, demonstrate our intention to improve the company's capital structure efficiency and reflect our long-standing dedication to our investors' interests. We will maintain our efforts to proactively manage market value.

(foreign language) Interpreted With that, we are ready to answer your questions. Operator.

(Operator Instructions) Our first question comes from the line of Thomas Chong from Jefferies.

(foreign language) My first question is about the auto industry Q3 development as well as how we should think about Q4 and 2023 outlook? And my second question is about the used car market. How the sector is developing so far as well as the market landscape, including (inaudible) as well as how we should think about next year's strategies?

(foreign language) [Interpreted] Thank you for your questions. The first question is related to the industry, and I will answer that. Your second question is related to the used car business. Our CFO, Craig Zeng, will answer you. So first of all, the auto industry is the [civil] industry for our national economy, and it has been receiving attention from all copies concerning its policies and development.

(foreign language) Interpreted First of all, I believe that the target at the moment of this year for our industry has already passed. Q3 [sees] a significant recovery of the profitability of car manufacturers to set of data for all of you, according to the CTCA, -- this year, China passenger vehicle sales Q1 a year-on-year decrease of 4.5% and Q2 year-on-year decrease of 9.8% and Q3 year-on-year growth of 23.7%.

According to National Statistics Bureau in the first nine months of this year [China's] automobile manufacturing revenue has a synchronized growth of 6.7% and profit over RMB 370 billion year-on-year decrease of 1.9% and the decreased margin compared to January to August has narrowed by 5.4 percentage points. We could see that the passenger vehicle sales is out of the [bottom] period and the turning point might have already -- might have been arrived -- might have arrived.

In Q3, the monthly sales and the production are both very optimistic leading the industry for a stabilization and a recovery, and we see the follow-up policies getting more and more specific and consolidated. And since September, we see the implementation of a series of necessary details. So that effectively improved the effective management [qualitative] foundation for economic recovery. So we believe that the automobile industry is having a more and more positive environment for our development.

(foreign language) Interpreted Secondly, we benefit from the policies that encourage automobile reduction, and we also see (inaudible) regarding the problem of the supply chain, as well as the shortage. Therefore, we are cautiously optimistic about the expectations for Q4 automobile industry development.

Automobile industry is highly valued by the country and the government. And this year has witnessed a series of favorable policies from all levels of [governments] to specifically stabilize and boost the major consumptions like automobile (inaudible) the state council, implemented the [state government] we moved comprehensively from the situation restriction for used cars and in this September, the Ministry of Finance, [the taxation] Administration MIIT jointly launched the policy to exams an EVs from auto purchase (inaudible) to encourage the NEV industry growth. So we see a huge potential for the upgrading in auto consumption in future.

Since the beginning of this year, we have seen a recurrence of the COVID-19 pandemic in multiple locations in China, which brought some challenges and uncertainties, fully macroeconomic growth and to some extent, gross (inaudible) impact for our on-mobile market in China. And the consumers are confident as well as their actions (inaudible) have been impacted by the periodical and pandemic control measures. So in a short-term perspective, there is -- to some extent uncertainty in the market, we are (inaudible) at the end of this year and the OEM or (inaudible), they try to give greater discounts to the sales. So I think that it is likely to boost the end consumption need and to initiate an upward cycle of our industry.

(foreign language) Interpreted On the other hand, from the perspective of the sales structure of the auto market and EV has been growing rapidly, because of a very upward market, due to the favorable policy, due to the improvement of the supply side as well as the higher gas prices in September, the NEV domestic retail penetration [rate] which is 31.8% compared year-on-year growth compared to last of September, the penetration rate was 21.1%, and you could see there is an increase of 11 percentage points.

In the first nine months this year, the NEV domestic retail penetration rate is 26% and in 2021 to 2035 NEV industry development plan it mentioned that the goal of 2025 NEV penetration rate is 20%. Now, we could see that the goal could be achieved three years in advance.

(foreign language) Interpreted According to the explanation by CAAM or China Association of Automobile Manufacturers, Q4 manufacturing and sales of automobile will continue to be stabilized under the process influence of policies that aim to stabilize the economy and goods consumption and is also estimates that the overall auto market this year would achieve the stable growth [project] and of course, the auto market still needs a favorable policies, and we hope that, the related policies could continue in the next year, so as this contribute to a stable growth of auto sector.

(foreign language) Interpreted So the second question, I see that you are quite interested in our data products as well as the second cars -- used cars business. Well, about our digital products, since the beginning of this year, we aim for a constant positive trend in our digital dealers business in terms of -- so we have a double-digit growth in terms of revenue a point of quantity, the dealer revenue -- or the [first store] revenue as well as the product -- collaborated products amounts have [sold], and so just proves our efficacy of our capability as well as our products.

(foreign language) Interpreted Talking about the digital product [for] OEM, we have already established a collaboration partnership with over 50% of the mainstream auto brands in Chinese market, specifically 48 brands. However, there is a very slight contraction because of the decrease of clients -- of the client's appointment but we see an increasing [set] of our collaboration.

(foreign language) Interpreted And taking our digital products in terms of new energy, recently, we signed an exclusive strategic cooperation agreement with Beijing (inaudible) Technology Company Limited, which further diverse our dimension of the data product. And in future, there will be in-depth cooperation between the two parties. We believe there is huge potential in terms of the digital product for NEV new cars, as well as used cars, which is an area that we are advantageous and good at.

(foreign language) Interpreted And talking about used car, first perspective is the [quality] perspective. The used cars in China, is the fastest growing used car market.

(foreign language) Interpreted And talking about the business landscape on Autohome TTP as well as Ping An, cover the upstream and middle-stream and downstream of the used cars development, which is our unique advantages in competition of which is lacking by other counterparts in the sector.

(foreign language) Interpreted In terms of business pattern, our certified used car platform is committed to service the pain points in the sector. And we are upgrading from a lead-generating service to value-added and digital life to service and is growing beyond our solo monetization passion.

(foreign language) Interpreted Generally speaking, we are very confident in a second we used the contractor, and we will keep maintaining our life asset service model and to build a platform of integrated [trading] service for used car.

(foreign language) Interpreted So above all, our answers to your questions, Thomas.

Our next question comes from Brian Gong from Citi. Please ask your question, Brian.

(foreign language) I will translate myself. Thanks management for taking my question. Can management share your view on auto as budget and as market ahead in the [fourth] quarter this year and next year? And also for our lease product to (inaudible), where we continue to roll out more premium working ahead?

(foreign language) [Interpreted] Generally speaking, we still hold a favorable attitude, and we are partially cautiously optimistic. Our estimation is based on the new car market, however, the -- talking about the advertising budget for new models of cars. This year, the auto shows or auto exhibitions all suffered from the impact of the COVID-19 pandemic almost all of them, almost none of them were held according to schedule or according to the schedule time or [scale]. However, that has led to new forms of auto shows, for example, virtually and for example, integrating with metaverse. So generally speaking, the advertising budget of OEM is still linked to the sales that is why our additives for Q4 as well as for next year is cautiously optimistic.

(foreign language) Interpreted (inaudible) We have been providing a more diverse service to our dealers. For example, (inaudible) is very popular among our dealers. So we will continue to provide new features to help our dealers to cut costs and boost the efficiency [more].

(foreign language) Interpreted So that is the answer for your question, Brian.

Our next question comes from Ritchie Sun from HSBC. Please ask your question, Ritchie.

(foreign language) Thank you management for taking my questions. First of all, is we noticed that you have signed some collaboration with NetEase Music as well as Huawei. Can you elaborate on the rationale and also opportunities behind this? And what are the other collaboration opportunities that we've seen with other Internet companies.

Secondly, in terms of cost cuts or efficiency initiatives, what are the other rooms for us to do more given the top macro environment? Thank you.

(foreign language) [Interpreted] Thank you for your question, Ritchie. First quick question is about our collaboration with NetEase Music, this is a new initiative that we make in the scenario of [subscribing] a car user scenario. We try to attract active users and to acquire new users and we collaborate with NetEase Music to launch a campaign called car owners music season and we launched some iterative activities. This provides better experiences of driving and music, and I think it gives us more room for imagination of how the content consumption could be integrated with the driving scenario.

(foreign language) Interpreted We also collaborate with the (inaudible), and we need this diverse formats to bring diversity to our common products, and we also try to use – user [adhesiveness] and bring traffic by this online and offline, which is a virtual important interaction activity.

(foreign language) Interpreted And besides, we also collaborate with (inaudible) and Huawei and we try to explore business development based on different scenarios and try to build an alliance and a new system for traffic.

(foreign language) Interpreted But for that we also have some other collaborations, for example, the Beijing Institute of Technology (inaudible) Information Technology Company Limited, which [were worth]mentioned a moment earlier, so Autohome in the future will have more collaborations with not only Internet enterprises, but also traditional enterprises to build an ecosystem for example, auto shopping, auto purchase as well as auto application.

(foreign language) Interpreted And your second question is about our cost efficiency (inaudible) it consist of internal and external initiatives internally speaking, there are some pipes to the small measures. For example, in terms of human resource, we have been doing and very well continuing to do -- to take measures such as the performance evaluation and another measure is technical measures.

(foreign language) Interpreted I'll give you an example of how we boost our cost efficiency by technical managers, for example, in our content generation, we use our technological measures to boost the efficiency of content generation in terms of our inventory of our models and we could even automatically generate explanations in video format.

(foreign language) Interpreted There are more places like this if you are interested, you can feel free to reach out to me for more.

(foreign language) Interpreted Talking about the external measures of cost efficiency initiative, we try to facilitate the building of our ecological system.

(foreign language) Interpreted For example, currently, our customer acquisition stayed focused on a shopping and car purchase. And in the future, we will extend this change to car driving, so in this way, we could further improve our ecosystem and we could [deeper] our cost efficiency initiative.

(foreign language) Interpreted So are there any further questions?

Our next question comes from (inaudible) from CICC. Please ask your question.

(foreign language) So my first question is regarding the data product. As we could expect the COVID resurgence may continue to weigh on our OEMs budget, how should we think of the OEM and dealers demand entering into Q4 and 2023? Also, are there any recent plans for new product launch? And my second question is about our cash usage. Since we have sufficient cash balance, do we have any plans to raise our dividend payout ratio or set up our share buybacks? Thank you.

(foreign language) [Interpreted] Thank you for your question. The first question regarding the data product, actually, I have already talked about it earlier and I will just recap it briefly. So we will continue to launch new data products for our customers. For OEMs, we will help them mainly with their marketing and launching of product. And for dealers, we will help them mainly with cost efficiency initiatives as well as market analysis.

(foreign language) Interpreted And talking about our cash flow, we will continue our buyback plan and we have been paying dividends in a stable manner. And we will, of course, pay returns to our shareholders in a manner that is best compatible with their best interests.

(foreign language) Interpreted Okay. That's the end of the Q&A session. Thank you, everyone. Thank you for joining us today in the earnings conference call, appreciate your support, and we look forward to updating you on our next quarter's conference call in a few month's time. So in the meantime, please feel free to contact us, if you have any (foreign language) to everyone. Thank you, operator. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.