Eason Technology Ltd (DXF) 2012 Q1 法說會逐字稿

Thank you for standing by and welcome to the China Xiniya Fashion first-quarter earnings conference call. At this time all participants are in a listen-only mode. There will be a presentation, followed by a question and answer session (Operator Instructions). I would now like to hand the conference over to your speaker today, C.J. Thank you. Please go ahead.

感謝您的耐心等待，歡迎參加中國新亞時尚第一季財報電話會議。目前所有參與者均處於唯讀模式。將進行演示，然後是問答環節（操作說明）。現在我謹將會議交給今天的演講嘉賓 C.J.。謝謝。請繼續。

Thank you. Good morning and good evening to all of our participants. Welcome to Xiniya first-quarter 2012 earnings conference call. You may find a copy of our earnings press release that we issued last night in the IR section of our website, at ir.xiniya.com or through PR Newswire. Joining me on the call is our Chairman and CEO, Mr. Qiming Xu.

謝謝。各位與會者，早安/晚上好。歡迎參加新亞2012年第一季財報電話會議。您可以在我們網站的投資者關係部分（ir.xiniya.com）或透過 PR Newswire 找到我們昨晚發布的獲利新聞稿副本。與我一同參加電話會議的還有我們的董事長兼執行長徐啟明先生。

Please note that we will be making a number of forward-looking statements today and all such statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions mentioned today, due to a variety of factors that affect the Company, including the risks certified in the most recently filed Form 20-F. Let me turn the call over to Chairman Xu who would like to make some introductory comments.

請注意，我們今天將做出一些前瞻性聲明，所有此類聲明均受風險和不確定性的影響，由於影響公司的各種因素（包括最近提交的 20-F 表格中認證的風險），實際結果可能與今天提到的預期和假設存在重大差異。我現在把電話交給徐主席，他想做些介紹發言。

(Interpreted). Hi, everyone, thank you all for joining us today. I'm very pleased to report a solid quarterly result. This quarter we once again delivered ahead of our stated revenue guidance. This strong performance demonstrates how our collections have over time continued to improve, driving our brand equity and retail outlet expansion, which now has more than 1,616 outlets and flagship stores.

（翻譯）大家好，感謝各位今天收看我們的節目。我很高興地報告，本季業績表現穩健。本季我們再次超額完成了先前公佈的營收預期。這一強勁的業績表明，我們的產品系列隨著時間的推移不斷改進，從而提升了我們的品牌價值和零售網點擴張，目前我們擁有超過 1616 家門市和旗艦店。

Our sales fair in Chengdu last month was very successful, with many analysts and investors in attendance [participating towards] a number of our retail outlets in Chengdu and surrounding cities and as well as the flagship stores. And the participants attended the fall and winter 2012 collection fashion show [to the sale price] of the sales fair. They are very pleased with the collection.

我們上個月在成都舉辦的銷售博覽會非常成功，許多分析師和投資者出席了展會，並參觀了我們在成都及週邊城市的多家零售店以及旗艦店。參與者們參加了 2012 年秋冬季時裝秀，並以銷售價格購買了商品。他們對這批藏品非常滿意。

Following the fashion shows participants observed more than 1,000 retailers from across China placing their orders. The total orders value from the biannual sales fair increased by 11% as compared to the previous year. Despite a warmer than expected winter last year and expected softening of the China economy, where distributors and retailers appear to be taking a cautionary approach in placing orders, we believe this strong performance in double-digit growth demonstrates the strength of our 2012 fall and winter collections.

時裝秀結束後，參與者觀察到來自中國各地的 1000 多家零售商下了訂單。與前一年相比，兩年一度的銷售展會的總訂單金額增加了 11%。儘管去年冬季氣溫高於預期，且中國經濟預計會放緩，分銷商和零售商在下訂單時似乎採取了謹慎的態度，但我們相信，兩位數的增長強勁表現表明了我們 2012 年秋冬季系列的實力。

This first quarter we have added one new distributor and our distributors have increased to 39. In the past we -- previously the Company had one distributor managing both Liaoning and Jilin provinces. At the current stage of our strategy we are focusing on appointing one distributor per province who will focus on maintaining and expanding that specific local market.

第一季我們新增了一家經銷商，分銷商總數增加到 39 家。過去，我們——以前公司只有一個經銷商，負責遼寧和吉林兩省的銷售。在目前的策略階段，我們專注於每個省份指定一名經銷商，負責維護和擴展當地市場。

Currently we have four provinces that are administrated by two distributors managing and expanding the market. As sales increase over time we intend to further dissect the market by adding more than one distributor per province who will be able to further penetrate district locally as the economy and fashion market expands.

目前我們有四個省份由兩家經銷商負責管理和拓展市場。隨著銷售額的成長，我們計劃進一步細分市場，每個省份增加不只一家經銷商，以便在經濟和時尚市場擴張的同時，進一步滲透到當地市場。

Looking ahead we are excited by the growth opportunity ahead of us, especially with regards to our new collection, as we continue to move the business forward and build a foundation for sustainable growth.

展望未來，我們對未來的發展機會感到興奮，尤其是在我們的新系列方面，我們將繼續推動業務向前發展，並為永續成長奠定基礎。

With that, I would like to turn the call to -- back to the CFO, Mr. Ng. He will review our operating and financial results. We appreciate your continued support and belief in Xiniya's future.

接下來，我想把電話轉給──把電話轉給財務長吳先生。他將審查我們的營運和財務表現。我們感謝您一直以來對欣雅未來的支持與信任。

Thank you, Mr. Xu. We are pleased to report another quarter of solid results. During the first quarter of 2012 Xiniya recorded revenue of RMB212m, an increase of 33% year over year. This greatly exceeded our guidance range, which has -- which was for a 23% to 28% increase. The number of units delivered increased by approximately 10% to 1.2m units, from 1.1m units during the same period last year.

謝謝徐先生。我們很高興地宣布，本季業績依然穩健。2012年第一季，新亞實現營收2.12億元人民幣，較去年同期成長33%。這遠遠超出了我們的預期範圍，我們先前預期的成長幅度為 23% 至 28%。交車量較去年同期成長約 10%，達到 120 萬台，去年同期為 110 萬台。

During the first quarter of 2012 our authorized network of retailers offered a net addition of nine new retail outlets. As of March 31 2012 the total number of stores selling Xiniya's brands was 1,616. Please refer to the press release for a breakdown of retail stores by outlet type.

2012 年第一季度，我們的授權零售商網路淨增 9 家零售店。截至 2012 年 3 月 31 日，銷售新亞品牌的門市總數為 1,616 家。請參閱新聞稿，以了解按門市類型劃分的零售店詳細資訊。

Gross profit increased by 34.9% to RMB72.3m in the first quarter of 2012, from RMB53.6m in first-quarter 2011. Gross margin was 34.1% compared with 33.6% in the first quarter of 2011. Selling and distribution expenses increased to RMB11.2m compared to RMB9.1m during the first quarter of 2011. These were an increase in rack expenses for authorized retail outlets of RMB6.9m and flagship store expense of RMB1.2m.

2012年第一季毛利成長34.9%，達到人民幣7,230萬元，而2011年第一季為人民幣5,360萬元。毛利率為 34.1%，而 2011 年第一季為 33.6%。銷售及分銷費用從 2011 年第一季的 910 萬元人民幣增加到 1,120 萬元。其中包括授權零售店貨架費用增加人民幣 690 萬元和旗艦店費用增加 120 萬元。

The increase was offset by the decrease in advertising promotion expenses of RMB6.3m. Since July 2011, as part of our -- the Company's overall strategy to unify the image of its authorized outlets, the Company has been paying for the shop racks for the authorized retail outlets opened on and after July 2011. This expenses was approximately RMB6.9m in the first quarter of 2012. Flagship store expenses was RMB1.2m, arising mainly from the new flagship store opened in Quanzhou, Fujian Province in November 2011.

成長被廣告推廣費用減少人民幣630萬元抵銷。自 2011 年 7 月起，作為公司統一其授權門市形象的整體策略的一部分，該公司一直為 2011 年 7 月及之後開業的授權零售店支付貨架費用。2012年第一季度，這項支出約為人民幣690萬元。旗艦店支出為人民幣120萬元，主要來自2011年11月在福建省泉州市開設的新旗艦店。

During the first quarter of 2012 administrative expenses were RMB8.3m, up from RMB3.5m in the first quarter of 2011. This increase is due to an increase in the number of administrative staff and salary increases. Income tax expense was RMB14.7m compared with a tax expense of RMB10.8m in the first quarter of 2011.

2012年第一季行政費用為人民幣830萬元，高於2011年第一季的人民幣350萬元。這一增長是由於行政人員數量增加和薪資上漲所造成的。所得稅費用為人民幣1,470萬元，而2011年第一季所得稅費用為人民幣1,080萬元。

Net profit was RMB43.2m in the first quarter of 2012 compared with RMB32.1m in the first quarter of 2011. Earnings per ADS were $0.12 per ADS in the first quarter of '12 -- 2012, exceeding prior guidance of $0.04 to $0.09. This compared to earnings of ADS of $0.08 during the first quarter of 2011.

2012年第一季淨利為人民幣4,320萬元，而2011年第一季淨利為人民幣3,210萬元。2012 年第一季度，每股 ADS 的收益為 0.12 美元，超過了先前 0.04 美元至 0.09 美元的預期。相比之下，2011 年第一季 ADS 的收益為 0.08 美元。

Finally, our financial position as of March 31, 2012. The Company had trade receivables of RMB203m (sic - see presentation) arising entirely from the sales during the first quarter of 2012. Trade receivables outstanding as of December 31, 2011 have been fully collected as of March 31, 2012.

最後，我們截至 2012 年 3 月 31 日的財務狀況。該公司2012年第一季的銷售應收帳款為人民幣2.03億元（原文如此 - 參見簡報）。截至 2011 年 12 月 31 日的未結清貿易應收帳款已於 2012 年 3 月 31 日全部收回。

Now let's turn to guidance. We'll be providing guidance for the second quarter of 2012 at this time. We expect to realize revenue growth approximately 19% to 21% in the second quarter of 2012 and earnings per ADS are expected to be in the range of $0.03 to $0.04.

現在我們來談談指導原則。屆時我們將提供2012年第二季的業績指引。我們預計 2012 年第二季營收將成長約 19% 至 21%，每股 ADS 收益預計在 0.03 美元至 0.04 美元之間。

This concludes our prepared remarks. We are now ready to take your questions. Operator?

我們的發言稿到此結束。現在我們可以回答你們的問題了。操作員？

(Operator Instructions). Your first question comes from the line of Chenyi Lu of Cowen & Company.

（操作說明）你的第一個問題來自 Cowen & Company 的 Chenyi Lu 一線。

Thank you, I have three questions. My first question is regarding the 2012 fall and winter sales event. I know the sales order is about 11% growth year over year. Can you give us a view as to what make out this 11% growth as to what the price increase versus what the volume increase? That will be my first question and then I'll come back for two more questions.

謝謝，我有三個問題。我的第一個問題是關於2012年秋冬季促銷活動。我知道銷售訂單年增約 11%。您能否分析一下這11%的成長是由價格上漲還是銷售成長所造成的？這將是我的第一個問題，之後我還會再回來問另外兩個問題。

In terms of ASP, it's about 31% arising from the -- well, 31% arising from ASP. And in terms of volume it's the -- it's a drop of 15%.

就平均售價而言，約有 31% 來自——嗯，31% 來自平均售價。就銷量而言，下降了 15%。

I say again, you're talking about ASP by increase by what percent; 31%, or is it 10%?

我再說一遍，您說的平均售價成長百分比是多少？是 31% 還是 10%？

31%.

31%。

(Spoken in foreign language).

（用外語說）

Decrease by 15%.

減少15%。

15%, okay. Okay. So this build to the question [related] to these sales orders, as in the prepared remarks the Company said that the reason for the lower sales order is because of the weaker economic growth and also some winter inventory build during the last -- this year and last year's warmer weather in China. So if the economy does turn around in the second half of this year do you think it's possible that you guys can -- the distributor can place additional orders so that they can have better sales?

15%，好的。好的。因此，這引出了與這些銷售訂單相關的問題，正如公司在準備好的發言稿中所說，銷售訂單減少的原因是經濟成長疲軟，以及去年和今年中國較溫暖的天氣導致冬季庫存積壓。所以，如果今年下半年經濟狀況好轉，你認為你們——分銷商——有可能增加訂單，從而獲得更好的銷售業績嗎？

(Interpreted). As mentioned earlier, because of the warmer weather and expected softening of the China economy we tried to be conservative in these sales figures. If the China economy turns around we will have the reorder at the sites for our retailers and distributors. This generally will be around August or early September when we have our spring and summer sales fair.

（翻譯）如前所述，由於天氣變暖以及預計中國經濟將放緩，我們在公佈這些銷售數據時力求保持保守。如果中國經濟好轉，我們將在零售商和分銷商的網站上重新下單。這通常會在八月或九月初，也就是我們舉辦春夏季銷售博覽會的時候。

Great. Okay, great. Let me move on my next question. The first-quarter gross margin is 34.1%, which is higher compared to first-quarter 2011. And I know this year the Company changed the rebate plan that you guys will give rebate to all the distributor who have met the criteria. So can you give us a view of gross margin in 2012? Do you expect gross margin to improve year over year, or it's still -- can you give us a view?

偉大的。好的，太好了。讓我繼續問下一個問題。第一季毛利率為 34.1%，高於 2011 年第一季。我知道今年公司更改了返利計劃，你們將向所有符合資格的經銷商發放返利。那麼，您可以為我們介紹一下2012年的毛利率狀況嗎？您預計毛利率會逐年增加嗎？還是依然如此？能否給我們一些看法？

Because of the rebate is given to all of our distributors, in the past it's the top 20, so with that it will have a negative impact on the GP margins. Although we have a growth in the GP margins in the first quarter, for the full year the GP margins will be 20% to 30% -- 20 to 30 basis points lower because of the margin given to all distributors.

由於所有經銷商都能獲得回饋，過去只有前 20 名經銷商能獲得回饋，因此這將對毛利率產生負面影響。儘管第一季毛利率有所增長，但全年毛利率將下降 20% 至 30%——由於所有分銷商都獲得了利潤，因此毛利率將下降 20 至 30 個基點。

So, basically, you're saying that for the whole-year basis the gross margin is going to drop about 20 to 30 basis points compared to 2011. Am I correct?

所以，基本上，你的意思是說，與 2011 年相比，全年毛利率將下降約 20 至 30 個基點。我說的對嗎？

Yes, this is correct.

是的，沒錯。

Okay. My final question regarding the store expansion plan and the distributor addition plan. I know that this quarter the Company adds one distributor and also nine net new stores in the first-quarter 2012. So can you give us an update as to how many distributors the Company plans to add, in addition to one, by the end of this year? And also how many more stores -- or total stores the Company going to add in 2012? Would that be more back-end loaded? That would be great.

好的。我最後一個問題是關於門市擴張計劃和分銷商拓展計劃的。我知道該公司本季新增了一家分銷商，並在 2012 年第一季淨增了九家門市。那麼，您能否告知我們，除了目前已有的一家經銷商之外，公司計劃在今年年底前新增多少家經銷商？此外，該公司在 2012 年還將新增多少家門市——或者說，門市總數將達到多少家？這樣會不會更偏向後端開發？那太好了。

(Interpreted). The plan is to add one to two new distributors each year. We have added one this year. If this year we have the suitable candidates we'll proceed accordingly.

（翻譯）計劃每年新增一到兩家分銷商。今年我們新增了一個。如果今年我們有合適的候選人，我們將按計劃進行。

For the new store expansions the plan is to have about -- around 150 to 250 new stores and the net addition should be above 100. The reason is because for the older stores we plan to restructure them either to expand their existing location or move to them a better location, or upgrade their renovations. So with that then we'll have a temporary impact this year. And we believe this will contribute to our future sales.

對於新店擴張計劃，預計新增約 150 至 250 家門市，淨增門市數量應超過 100 家。原因是，對於較老的門市，我們計劃對其進行重組，要么擴大現有店面，要么搬遷到更好的位置，要么升級裝修。所以，今年將會受到暫時性的影響。我們相信這將有助於我們未來的銷售。

Okay, thank you. That's all my questions.

好的，謝謝。我的問題就這些了。

The next question comes from the line of [Brian Cenzek] of Janney Capital Markets.

下一個問題來自 Janney Capital Markets 的 [Brian Cenzek]。

Hi, how are you? This is Brian Cenzek calling on behalf of Adrienne. I just have a few questions. Actually, a lot of my questions were already answered and I appreciate the color you guys gave on some of that stuff. But the first thing I want to ask is about the sales upside in the first quarter here increased 33% versus your guidance of 23% to 28%. I was wondering if you could speak a little bit about where that upside came from.

你好你好嗎？這裡是布萊恩岑澤克，我代表艾德琳打電話。我還有一些問題。實際上，我的許多問題都已經得到了解答，我很感謝你們對其中一些問題的深入探討。但我首先想問的是關於第一季的銷售額成長，這裡成長了 33%，而您之前的預期是 23% 到 28%。我想請您談談這種利多因素從何而來。

We had the sales fair in September 2011. For the full -- for the first half of this year the full (inaudible) was going to be [36%]. If we deliver 33% on the first quarter it will mean our second quarter's delivery will slow down. The full six months will be 26%.

我們在2011年9月舉辦了銷售博覽會。今年上半年，全部（聽不清楚）原本應該是[36%]。如果我們第一季交付量達到 33%，那就意味著我們第二季的交貨速度將會放緩。六個月的總和將佔 26%。

Okay, perfect. And then, so, similarly along that line, with the 11% that you just announced, can you give me any idea on how that will be broken up in the back half of the year?

好的，完美。同樣地，關於您剛才宣布的 11% 的增長，您能否告訴我這部分增長在今年下半年將如何分配？

The back half of the year it will be -- based on historicals it should be around -- so full six months the back half of the year will be 11%.

根據歷史數據，下半年的漲幅應該在 11% 左右。因此，下半年整整六個月的漲幅將達到 11%。

Okay, great. And then I know you were speaking about gross margin for the full year previously [being] down about 20 or 30 basis points. I was wondering if you could talk a little bit more about the cadence of how we can see that progress over the next few quarters. Specifically the second quarter, how we should be looking at modeling gross margin and, actually, specifically SG&A, as I try to get down to your guidance of $0.03 to $0.04 here. If you could give me any color on that, that would be great.

好的，太好了。我知道您之前提到全年毛利率下降了大約 20 或 30 個基點。我想請您再詳細談談在接下來的幾個季度裡，我們如何才能看到這一進展的節奏。具體來說，在第二季度，我們應該如何看待毛利率模型，實際上，特別是銷售、一般及行政費用模型，因為我正在努力達到您給出的 0.03 至 0.04 美元的指導目標。如果你能給我一些顏色上的訊息，那就太好了。

For the gross margin it will be flat for second quarter. For the full year the selling expenses should be, typically, double for the full year. And the --

第二季毛利率將與上季持平。通常情況下，全年的銷售費用應該是全年的兩倍。以及——

It will be double? Is that (multiple speakers)?

會翻倍嗎？那是（多位發言者）嗎？

-- [selling] expenses should be 1.5 times of last year's. Why we do that is because we plan to increase in advertising and also the drag that we used to -- for the new stores, as well as the reformatting the old stores that would have some impact.

——銷售費用應為去年的 1.5 倍。我們這樣做是因為我們計劃增加廣告投入，以及我們過去對新店的投入，還有對舊店的重新裝修，這些都會產生一定的影響。

Okay, great. And then my last question, I just wanted to ask about if you guys have any comments on the cost environment as it relates to Chinese labor wages. Or, cotton, do you expect to see any benefit in the back half of the year, or how you guys are looking at that for the remainder of the year here?

好的，太好了。最後一個問題，我想問各位對與中國勞動力工資相關的成本環境有什麼看法。或者，棉花方面，你們預計下半年會有什麼收益嗎？或者你們如何看待今年剩餘時間的棉花市場？

This cost increase or decrease doesn't have any impact on us, because the way we price our product is cost plus gross margin that we want and fix our price.

成本的增加或減少對我們沒有任何影響，因為我們的產品定價方式是成本加成，我們既要保證價格固定，又要保證毛利率。

Got it, I understand. Okay, great. Well, thank you. That's all the questions that I have. And I just want to say I'm looking forward to seeing you in Boston soon and getting to meet you for the first time.

明白了，我懂了。好的，太好了。謝謝。這就是我所有的問題了。我只想說，我期待很快在波士頓見到你，並有機會與你第一次見面。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Your next question comes from the line of Brian Gaines of Springhouse Capital.

你的下一個問題來自 Springhouse Capital 的 Brian Gaines。

Hi, guys. While I appreciate you have a buyback in place currently, can you talk more about the fact that you have $3 a share in cash and the potential to increase your buyback?

嗨，大家好。雖然我很欣賞你們目前已經實施了股票回購計劃，但能否詳細談談你們目前擁有每股 3 美元的現金，以及增加股票回購的潛力？

For your information, the buyback is restricted by the rule 10b5-1 and we have been buying according to the rule. The rule has limiters in volume and limiters in volume that we can buy. Also we should (inaudible) sustainable in future. At this stage, once the share buyback program finish, we will reconsider whether this program is effective or not.

供您參考，回購受到 10b5-1 規則的限制，我們一直按照該規則進行回購。這個規則對購買數量和我們可以購買的數量都有限制。此外，我們未來也應該（聽不清楚）實現永續發展。現階段，待股票回購計畫結束後，我們將重新評估計畫是否有效。

But you can tender for shares. You could go out and buy more shares if you wanted. Are you -- you're saying you're restricted by the 10b5?

但你可以參與股份競標。如果你願意，你可以去買更多股票。你是說——你是說你受到 10b5 的限制？

Yes.

是的。

Right. But in the US companies can go out and they could cancel a 10b5 and do a tender offer for a larger number of shares. Have you considered that?

正確的。但在美國，公司可以取消 10b5 協議，並發起要約收購，收購更多股份。你有考慮過這一點嗎？

We will have to explore this with our legal counsel and our advisors to see how to go about doing this.

我們需要和法律顧問及諮詢人員探討一下，看看該如何著手處理這件事。

Right. Because, I'll just repeat, as US investors this type of situation could not exist in the US. If a company had $3 a share in cash and their stock was trading at $1.40, they would go out and they would buy shares, which would give shareholders -- they would buy more shares than the tiny bit you're buying via the 10b5, which would give people confidence in the Company's -- that everything is operating correctly and that management has confidence in the Company.

正確的。因為，我再說一遍，身為美國投資者，這種情況在美國是不可能發生的。如果一家公司每股有 3 美元現金，而其股票交易價格為 1.40 美元，他們就會出去買入股票，這將使股東們——他們會買入比你透過 10b5 購買的少量股票更多的股票，這將增強人們對公司的信心——一切運轉正常，管理層對公司充滿信心。

And, in fact, if you bought back shares you would increase the value of the Company, because you would be buying back shares at half their value per share of cash.

事實上，如果你回購股票，你就會提高公司的價值，因為你將以每股價值的一半用現金回購股票。

Noted. We will explore that with our counsel.

著名的。我們會諮詢律師後再探討這個問題。

Okay, thank you.

好的，謝謝。

(Operator Instructions). Your next question comes from the line of Huchen Zhang of RME Capital.

（操作說明）你的下一個問題來自 RME Capital 的張虎辰。

(Spoken in foreign language).

（用外語說）

(Spoken in foreign language).

（用外語說）

Hello. (Spoken in language).

你好。（用該語言說）

We plan to increase our spending in advertising and promotions. So this year should be double what we spent last year. One of the reasons is that -- go ahead.

我們計劃增加廣告和促銷方面的支出。所以今年的支出應該是去年的兩倍。其中一個原因是——請繼續。

(Spoken in foreign language).

（用外語說）

You will get the breakdown in our Annual Report.

您可以在我們的年度報告中找到詳細資訊。

(Spoken in foreign language).

（用外語說）

Well, I can give you the breakdown, but you want to call me another time?

我可以給你詳細解釋一下，不過你想改天再打電話給我嗎？

Sure, no problem. (Spoken in foreign language).

當然沒問題。（用外語說）

(Spoken in foreign language).

（用外語說）

For the same-store sales growth, before I answer your question, we have to say this to you. That this information is collected manually on a weekly basis from the retailers to the -- to our distributors and on a monthly basis distributors send this information to the Company. From that we compute the same-store sales growth for stores opened for more than 12 months. So all this are done manually. It may not be accurate. Based on this feedback the same-store sales growth is about 16%.

關於同店銷售成長，在我回答你的問題之前，我們必須先告訴你這一點。這些資訊每週由零售商手動收集並發送給我們的分銷商，分銷商每月將這些資訊發送給公司。由此我們計算出開業超過 12 個月的門市的同店銷售成長率。所以所有這些都是手動完成的。可能並不準確。根據這項回饋，同店銷售額成長約為 16%。

As for the ERP, we be -- we are testing the system right now and we will be testing this from July onwards for [Peter Chokwan]. If there's less issue on the ERP system we will install this ERP system in selected [retail] stores.

至於 ERP 系統，我們目前正在測試該系統，並將從 7 月開始為 [Peter Chokwan] 進行測試。如果ERP系統的問題較少，我們將在選定的[零售]門市安裝該ERP系統。

(Spoken in foreign language).

（用外語說）

As we don't have the ERP system we do not know the inventory's turnover. But we -- based on the feedback generally it's around 90 days -- 80 day, 90 days turnover trend. And as for the ERP --

由於我們沒有ERP系統，因此我們不知道庫存週轉率。但根據回饋，一般來說，週轉週期在 90 天左右，80 天，90 天。至於ERP系統——

(Spoken in foreign language).

（用外語說）

Yes.

是的。

Sorry.

對不起。

And the ERP system -- based on the initial contract signed with the ERP service provider the initial installation point will be up to 400.

而 ERP 系統－根據與 ERP 服務提供者簽訂的初始合同，初始安裝點將達到 400 個。

Okay. (Spoken in foreign language).

好的。（用外語說）

(Interpreted). As for the sub-brand the -- we have done the market research and we -- the initial plan is to launch this sub-brand this year. However, because of the expected uncertainties in China economy we want to take a cautionary stance on this implementation. We will put this project on hold for the time being.

（翻譯）至於子品牌——我們已經進行了市場調查，初步計劃是在今年推出這個子品牌。然而，由於中國經濟存在許多不確定性，我們希望對這項措施的實施採取謹慎態度。我們將暫時擱置這個項目。

(Spoken in foreign language).

（用外語說）

Operator, the next --

操作員，下一個——

(Operator Instructions). There are no questions at this time. I would like to turn the call back over to management for closing remarks.

（操作說明）目前沒有問題。我想把電話轉回給管理階層，請他們做總結發言。

Thank you, everyone, for attending this conference call. Looking forward to hear from you on the next conference call. Thank you. The call is finished.

感謝各位參加本次電話會議。期待在下次電話會議上聽到您的回覆。謝謝。通話已結束。

Thank you for participating in today's conference. You may now disconnect.

感謝您參加今天的會議。您現在可以斷開連線了。

Portions of this transcript that are noted "interpreted" were interpreted on the conference call by an Interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.

本記錄中標示「口譯」的部分是由在電話會議現場的口譯員進行口譯的。本次活動的翻譯由活動贊助公司提供。