Hudson Technologies Inc (HDSN) 2022 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Hudson Technologies First Quarter 2022 Earnings Call. (Operator Instructions)

女士們先生們，下午好，歡迎來到哈德遜科技 2022 年第一季度財報電話會議。 （操作員說明）

It is now my pleasure to turn the floor over to your host, Jen Belodeau. Ma'am, the floor is yours.

現在我很高興將發言權交給主持人 Jen Belodeau。女士，地板是你的。

Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies' financial results for first quarter 2022. On the call today are Brian Coleman, President and Chief Executive Officer, and Nat Krishnamurti, CFO. I'll now take a moment to read the safe harbor statement.

謝謝。晚上好，歡迎參加我們的電話會議，討論 Hudson Technologies 2022 年第一季度的財務業績。今天的電話會議有總裁兼首席執行官 Brian Coleman 和首席財務官 Nat Krishnamurti。我現在花點時間閱讀安全港聲明。

During the course of this conference call, we will certain forward-looking statements. All statements address expectations, opens or predictions about the future are forward-looking statements. Although they reflect our current expectations and are based on our best view of the industry and of our businesses as we see them today, they are not guarantees of future performance. Please understand that these statements involve a number of risks and assumptions, and since those elements can change and in certain cases, are not within our control, we would ask that you consider that an inter present in that light. We urge you to review Hudson's most recent Form 10-K and other subsequent SEC filings for a discussion of the principal risks and uncertainties that affect our business and our performance and other factors that would cause our actual results to differ materially. With that out of the way, I'll turn the call over to Brian Coleman. Go ahead, Brian.

在本次電話會議過程中，我們將做出某些前瞻性陳述。所有針對未來的預期、開放或預測的陳述均為前瞻性陳述。儘管它們反映了我們當前的期望，並且基於我們對行業和業務的最佳看法，但它們並不能保證未來的表現。請理解，這些陳述涉及許多風險和假設，並且由於這些因素可能會發生變化，並且在某些情況下不在我們的控制範圍內，因此我們會要求您考慮這種情況。我們敦促您查看哈德森最近的 10-K 表格和其他隨後提交給美國證券交易委員會的文件，以討論影響我們業務和業績的主要風險和不確定性以及可能導致我們的實際結果出現重大差異的其他因素。有了這個，我會把電話轉給布賴恩科爾曼。來吧，布賴恩。

Thank you. Good evening, and thank you for joining us. 2022 is off to a very strong start, building on the momentum we saw coming out of calendar year 2021. We delivered record first quarter results as demonstrated by significant revenue growth, substantially enhanced margins, and improved profitability. The first quarter kicks off our traditional 9-month selling season, and we saw a continuation of the upward pricing trends that characterize pricing activities in the back half of calendar year 2021. We may remember that our 2021 season got off to a slow start and then picked up momentum as the year progressed.

謝謝。晚上好，感謝您加入我們。 2022 年開局非常強勁，建立在我們看到的 2021 日曆年的勢頭之上。我們實現了創紀錄的第一季度業績，收入顯著增長、利潤率大幅提高和盈利能力提高就證明了這一點。第一季度開啟了我們傳統的為期 9 個月的銷售旺季，我們看到了 2021 年下半年定價活動特徵的價格上漲趨勢的延續。我們可能還記得，我們的 2021 年銷售季開局緩慢，隨著時間的推移，勢頭逐漸增強。

In addition to record revenue for the first quarter of 2022, gross margin increased to 54%, mainly due to a significant increase in the average selling price without material appreciation in the cost basis of certain refrigerants. Simply put, selling prices for refrigerants increased faster than our cost of refrigerants in the quarter. Additionally, we benefited from increased sales volume as we continue to focus on developing strategic working relationships with customers who value not just our ability to meet their refrigerant needs today, but who also recognize the value of our sustainability portfolio. This growth was achieved while we continue to exit certain non-core sales, which is a pattern we started during the third quarter of last year and likely conclude this year.

除了 2022 年第一季度創紀錄的收入外，毛利率增至 54%，這主要是由於在某些製冷劑的成本基礎沒有大幅上漲的情況下，平均售價大幅上漲。簡而言之，本季度製冷劑銷售價格的增長速度快於我們的製冷劑成本。此外，隨著我們繼續專注於與客戶發展戰略合作關係，我們受益於銷量的增加，這些客戶不僅重視我們滿足當今製冷劑需求的能力，而且也認識到我們可持續發展產品組合的價值。這一增長是在我們繼續退出某些非核心銷售的同時實現的，這是我們在去年第三季度開始並可能在今年結束的模式。

Over the years, we've established a solid base of long-standing customers, and we remain focused on adding customers who understand Hudson's value proposition as a supplier and a producer in the circular economy of refrigerants through reclamation. That said, our first quarter margin was unusually strong and not sustainable over the long term. We expect margin performance for the full year 2022 will moderate to levels similar to last year as the cost of inventory will increase through 2022.

多年來，我們已經建立了堅實的長期客戶基礎，我們仍然專注於增加了解哈德森作為製冷劑循環經濟供應商和生產商價值主張的客戶。也就是說，我們第一季度的利潤率異常強勁，從長遠來看是不可持續的。我們預計 2022 年全年的利潤率表現將放緩至與去年相似的水平，因為庫存成本將在 2022 年之前增加。

The start of 2022 marks the beginning of our industry's compliance with the AMAG regulations, which mandated a 10% step-down in the production and consumption allowances for HFCs for 2022 and '23, with a 40% reduction in the baseline scheduled to take place in 2024. HFCs are currently the most commonly used refrigerants and as a leading reclaimer, we are uniquely positioned to fill the anticipated HFCs supply gap as virgin production is phased out. It's important to note that the AMAG mandates a much more aggressive and faster phaseout than what we previously saw with the R22 phaseout and promotes the use of reclaimer refrigerants to meet demand as virgin production steps down.

2022 年的開始標誌著我們行業開始遵守 AMAG 法規，該法規要求在 2022 年和 23 年將氫氟碳化合物的生產和消費配額減少 10%，併計劃將基線減少 40% 2024 年。氫氟碳化合物是目前最常用的製冷劑，作為領先的回收商，我們具有獨特的優勢，可以填補原始生產逐步淘汰後預期的氫氟碳化合物供應缺口。值得注意的是，AMAG 要求的淘汰比我們之前看到的 R22 淘汰更積極、更快，並提倡使用回收製冷劑來滿足原始生產減少時的需求。

As a leading reclaimer with the reclamation technology capabilities and established distribution network in place, we believe this presents us with a tremendous market opportunity to expand our leadership role in the industries transition to cleaner, more efficient, next-generation cooling equipment and refrigerants. We previously communicated longer-term annualized revenue and operating income targets of $350 million and $72 million, respectively for 2023 through 2024 based on pricing in Europe as they were implementing their HFC phaseout. With our visibility today, assuming this year's pricing trend continues and with the initial impact of the AMAG regulations, we believe we're on a path to reach those longer-term targets at a faster rate than we originally estimated. We remain confident that 2022 will be a year of tremendous opportunity for Hudson.

作為擁有回收技術能力和已建立分銷網絡的領先回收商，我們相信這為我們提供了巨大的市場機會，以擴大我們在行業向更清潔、更高效的下一代冷卻設備和製冷劑轉型中的領導地位。我們之前根據歐洲實施 HFC 淘汰計劃時的定價，將 2023 年至 2024 年的長期年化收入和營業收入目標分別定為 3.5 億美元和 7200 萬美元。憑藉我們今天的知名度，假設今年的定價趨勢繼續下去，並且受到 AMAG 法規的初步影響，我們相信我們正在以比我們最初估計的更快的速度實現這些長期目標。我們仍然相信，2022 年對哈德森來說將是充滿巨大機遇的一年。

In addition to the AMAG we are positioned to benefit from industry compliance with initiatives put forth by the California Air Resources Board, or CARB. As we mentioned before, CARB has proposed a requirement that OEMs use a minimum 10% reclaim refrigerants in the factory-charged equipment, and we've been actively pursuing opportunities to assist OEMs in meeting this requirement. We are intent upon growing from our initial partnership, supplying the clean refrigerant to April air to expanding our brand recognition among other OEMs in our industry as they seek a source for reclaimed refrigerants. Hudson was founded on a commitment to promoting and enabling sustainable cooling practices.

除了 AMAG，我們還可以從行業遵守加州空氣資源委員會 (CARB) 提出的倡議中獲益。正如我們之前提到的，CARB 提出了一項要求，即原始設備製造商在工廠充注的設備中使用至少 10% 的回收製冷劑，我們一直在積極尋求機會協助原始設備製造商滿足這一要求。我們打算從最初的合作夥伴關係發展壯大，為 April air 供應清潔製冷劑，以擴大我們在業內其他原始設備製造商中的品牌知名度，因為他們正在尋找回收製冷劑的來源。 Hudson 建立在致力於促進和實現可持續冷卻實踐的基礎上。

Our focus on recovering, reclaiming, and reusing refrigerants reduces waste and greenhouse gas emissions, creating maximum economic value for used refrigerants. The integration of refrigerant reclamation sales of our branded Emerald claim refrigerants and our site services creates a powerful platform for us to continue to lead the way in providing measurable and verifiable sustainability practices for our customers, wishing to document their positive impact on the environment. As we begin to enter the heart of the 2022 selling season, we are energized by the opportunities we're seeing in the marketplace for our products and services. With our long-standing customer base, diversified technology, and product offerings, and proven distribution network, we believe we are ideally positioned to capitalize on the changing market conditions as the industry transitions from existing to next-generation refrigerants and equipment. Now I'll turn the call over to Nat to review the financials. Go ahead, Nat.

我們專注於回收、回收和再利用製冷劑，減少廢物和溫室氣體排放，為用過的製冷劑創造最大的經濟價值。我們品牌 Emerald 聲明製冷劑的製冷劑回收銷售與我們的現場服務相結合，為我們創造了一個強大的平台，使我們能夠繼續引領潮流，為我們的客戶提供可衡量和可驗證的可持續發展實踐，希望記錄他們對環境的積極影響。當我們開始進入 2022 年銷售旺季的核心時，我們在市場上看到的產品和服務機會讓我們充滿活力。憑藉我們長期的客戶群、多元化的技術和產品供應，以及久經考驗的分銷網絡，我們相信，隨著行業從現有製冷劑和設備向下一代製冷劑和設備過渡，我們能夠充分利用不斷變化的市場條件。現在我會把電話轉給 Nat 來審查財務狀況。去吧，納特。

Thank you, Brian. For the first quarter ended March 31, 2022, Hudson recorded revenues of $84.3 million, an increase of 149% compared to $33.8 million in the comparable 2021 period. The growth was driven by increased selling prices for certain refrigerants during the quarter as well as increased volume. Gross margin was 54% for the first quarter of 2022 compared to 27% in the first quarter of 2021.

謝謝你，布萊恩。截至 2022 年 3 月 31 日的第一季度，Hudson 的收入為 8430 萬美元，與 2021 年同期的 3380 萬美元相比增長了 149%。這一增長是由本季度某些製冷劑的銷售價格上漲以及銷量增加推動的。 2022 年第一季度的毛利率為 54%，而 2021 年第一季度為 27%。

As Brian pointed out earlier, the gross margin increase is mainly due to the significant increase in selling price without a material appreciation in the cost basis of certain refrigerants sold. As we move through 2022, we expect gross margin performance for the full year to moderate to levels similar to gross margin performance in fiscal year 2021. SG&A for the first quarter of 2022 was $6.8 million or 8% of revenue compared to $6.7 million or 20% of revenue in the first quarter of 2021. We recorded operating income of $38.3 million in the first quarter of 2022 compared to operating income of $1.7 million in the first quarter of 2021.

正如布賴恩早些時候指出的那樣，毛利率的增長主要是由於銷售價格大幅上漲，而銷售的某些製冷劑的成本基礎並未大幅上漲。到 2022 年，我們預計全年的毛利率表現將放緩至與 2021 財年毛利率表現相似的水平。2022 年第一季度的 SG&A 為 680 萬美元，佔收入的 8%，而 670 萬美元或 20佔 2021 年第一季度收入的百分比。我們在 2022 年第一季度的營業收入為 3830 萬美元，而 2021 年第一季度的營業收入為 170 萬美元。

The company recorded net income of $29.6 million or $0.66 per basic and $0.63 per diluted share in the first quarter of 2022 compared to a net loss of $1.1 million or a loss of $0.02 per basic and diluted share in the same period of 2021. The company's leverage ratio was 1.16:1, for the trailing 12 months ended March 31, 2022, declining significantly from a leverage ratio of 6.18:1 for the trailing 12 months ended March 31, 2021, mainly as a result of the improved performance. During the quarter, as previously announced, the company entered into a new $85 million term loan agreement with TCW Asset Management LLC and amended its existing revolving credit facility to increase the overall facility to $90 million, which is comprised of: one, TCW participating in $15 million of this facility; and two, Wells Fargo, providing up to another $75 million in borrowing capacity.

該公司在 2022 年第一季度錄得淨收入 2960 萬美元或每股基本股 0.66 美元和稀釋後每股 0.63 美元，而 2021 年同期淨虧損 110 萬美元或每股基本股和稀釋後每股虧損 0.02 美元。該公司的截至 2022 年 3 月 31 日止的過去 12 個月，槓桿率為 1.16:1，較截至 2021 年 3 月 31 日的過去 12 個月的槓桿率為 6.18:1 大幅下降，主要是由於業績改善。在本季度，正如之前宣布的那樣，公司與 TCW Asset Management LLC 簽訂了一份新的 8500 萬美元定期貸款協議，並修改了其現有的循環信貸額度，將總額度增加到 9000 萬美元，其中包括：一、TCW 參與該設施的 1500 萬美元；第二，富國銀行，提供高達 7500 萬美元的借貸能力。

Wells Fargo continues to manage the overall revolving credit facility. Our March 31, 2022 balance sheet disclosed a $100 million term loan, consisting of the aforementioned $85 million term loan and the $15 million of participation in the ABL with no additional drawdowns on the ABL. The company's total availability at March 31, 2022, was $62.1 million, consisting of $56.9 million under the new revolver facility and $5.2 million of cash. In conjunction with entry into the new term loan facility and amended revolving credit facility, the company's existing term loan was repaid in full and terminated. The refinancing of the term loan constituted an extinguishment of debt, resulting in a onetime nonrecurring incremental interest expense of $4.6 million during the first quarter of 2022. Any deferred financing costs relating to the ABL or the new term loan will be amortized over the 5-year term of the respective loans. The current ABL structure gives the company better opportunities to procure inventory for the ongoing selling season. future cash flow opportunities, such as the potential for increased pricing that Brian mentioned, would enable the company to pay down its debt at an accelerated rate. We have strong liquidity, and our term loan and revolving loan credit facilities and partners provide us with a solid financial platform and flexibility as we look forward. I will now turn the call back over to Brian.

富國銀行繼續管理整體循環信貸額度。我們 2022 年 3 月 31 日的資產負債表披露了一筆 1 億美元的定期貸款，包括上述 8500 萬美元的定期貸款和參與 ABL 的 1500 萬美元，沒有額外提取 ABL。截至 2022 年 3 月 31 日，該公司的總可用資金為 6210 萬美元，其中包括新左輪手槍貸款下的 5690 萬美元和 520 萬美元現金。結合新的定期貸款安排和修改後的循環信貸安排，公司現有的定期貸款已全額償還並終止。定期貸款的再融資構成債務清償，導致 2022 年第一季度一次性增加 460 萬美元的利息支出。任何與 ABL 或新定期貸款相關的遞延融資成本將在 5-各貸款的年期。當前的 ABL 結構為公司提供了更好的機會來為正在進行的銷售季節採購庫存。未來的現金流機會，例如 Brian 提到的提高定價的可能性，將使公司能夠以更快的速度償還債務。我們擁有強大的流動性，我們的定期貸款和循環貸款信貸額度和合作夥伴為我們提供了堅實的財務平台和靈活性。我現在將把電話轉回給布賴恩。

Thank you, Nat. As we enter the heart of the 2022 selling season, we are excited about the opportunities ahead and focus on growing our leadership position in the refrigerant and reclamation industry. Operator, we'll now open the call to questions.

謝謝你，奈特。隨著我們進入 2022 年銷售旺季的核心，我們對未來的機遇感到興奮，並專注於提升我們在製冷劑和回收行業的領導地位。接線員，我們現在開始提問。

(Operator Instructions) Your first question is coming from Ryan Sigdahl from Craig-Hallum.

（操作員說明）您的第一個問題來自 Craig-Hallum 的 Ryan Sigdahl。

Curious, I don't think I caught it. What exactly is the price of R22 and R410a currently?

好奇，我不認為我抓住了它。目前R22和R410a的價格到底是多少？

Sure. R22 is fairly stable in the low 30s. I'm not certain that you're going to see much further price movement on R22. We always have provided a long-term range target that R22 to get to $30 a pound as we would have seen with many of the CFCs that were phased out back in the '90s. R22 will be acting with much more normal economics relative to supply and demand and, therefore, pricing. So we expect it to continue to be in that level and probably not materially change over time.

當然。 R22 在 30 年代的低點相當穩定。我不確定您是否會看到 R22 的價格進一步波動。我們一直提供一個長期範圍目標，即 R22 達到每磅 30 美元，正如我們在 90 年代看到的許多被淘汰的 CFC 一樣。 R22 將按照相對於供求和定價的更正常的經濟規律行事。所以我們預計它會繼續保持在那個水平，並且可能不會隨著時間的推移而發生重大變化。

We expect Hudson to continue to gather used R22 at a significantly lower price cost basis relative to that sale price, and that model should continue. As it relates to HFCs, we've seen, again, further price increases even in our last earnings call. We're now certainly above $14 on average for HFCs. And we're now starting to see a break in HFC pricing that we may not have communicated clearly in the past, but we're starting to see higher than average prices, let's say, this $14 or higher for HFCs that are much higher GDP value than, let's say, a 410a. So what we're trying to articulate here is if you happen to have an HFC that might have twice the GP weighting of 410a, while it's not true today, we do see situations where that particular refrigerant could sell for twice the price for today just because of the GDP weighting. So this is something we do expect to see more so possibly in 2024, but we're beginning to see a lot of signs already in this initial implementation in Q1 of the AMAG that has accelerated what we thought we might see, and as a result in our financial performance this first quarter.

我們預計 Hudson 將繼續以相對於該銷售價格低得多的價格成本基礎收集使用過的 R22，並且該模型應該繼續下去。由於它與氫氟碳化物有關，即使在我們上次的財報電話會議上，我們也再次看到價格進一步上漲。我們現在肯定超過 14 美元的 HFC 平均價格。我們現在開始看到 HFC 定價出現突破，我們過去可能沒有明確溝通過，但我們開始看到高於平均價格，比方說，對於 GDP 高得多的 HFC 來說，這 14 美元或更高價值比，比方說，410a。因此，我們在這裡試圖闡明的是，如果您碰巧擁有一種 HFC，其 GP 權重可能是 410a 的兩倍，雖然今天情況並非如此，但我們確實看到這種特定製冷劑的售價可能是今天的兩倍因為GDP權重。所以這是我們確實希望在 2024 年看到更多的東西，但我們開始在 AMAG 第一季度的這個初始實施中看到很多跡象，這些跡象加速了我們認為我們可能會看到的，因此在我們第一季度的財務業績中。

And Brian, can you remind us what your breakout is approximately on HFCs between R-410A and those other gases?

布賴恩，你能提醒我們你在 R-410A 和其他氣體之間的氫氟碳化合物上的突破大約是什麼嗎？

Well, HFCs now are the dominant refrigerant in the marketplace. They're likely in that 75% to 80% of the total aftermarket volume. -- within R-22 and other products and even to some extent, HFOs are beginning to increase but very small percentages right now in the aftermarket. So really, HSCs dominate the overall demand in the aftermarket.

好吧，氫氟碳化合物現在是市場上占主導地位的製冷劑。他們可能佔售後市場總量的 75% 到 80%。 -- 在 R-22 和其他產品中，甚至在某種程度上，HFO 開始增加，但目前在售後市場中所佔的百分比非常小。因此，實際上，HSC 主導了售後市場的整體需求。

But maybe breaking that down one more layer within that HFC 75% to 80%, what percent is R-410a which historically thought was the vast majority of the volume versus those higher GWP HFCs that you're referring to?

但是，也許將 HFC 中的 75% 到 80% 再細分一層，R-410a 與您所指的那些更高 GWP 的 HFC 相比，歷史上認為佔體積的絕大部分的百分比是多少？

Yes, that would be correct. So R410a is the replacement refrigerant for R22. It's mainly a comfort cooling application. R410a probably is the single largest volume HFC. But there are 20-plus HFCs out there in the marketplace of some material size. After -- for today, then you're getting into products like 130 foray and then the rest of the HFC pack is pretty similar to each other.

是的，那是正確的。所以R410a是R22的替代製冷劑。它主要是一種舒適的冷卻應用。 R410a 可能是體積最大的 HFC。但市場上有 20 多種 HFCs 存在於某種材料尺寸中。之後——就今天而言，你將進入 130 等產品，然後 HFC 包的其餘部分彼此非常相似。

Helpful. Moving on to inventory. So it increased pretty significantly. How much of that is adding pounds versus price increases within there as your cost base increases? And then secondly, on inventory, how do you feel about inventory levels heading into the summer selling season?

有幫助。繼續庫存。所以它增加了相當顯著。隨著成本基礎的增加，其中有多少是增加磅數而不是價格上漲？其次，關於庫存，您如何看待即將進入夏季銷售旺季的庫存水平？

Yes. So back to our inventories and discipline with our inventories, we are really seeing dollars in inventory and higher dollars in Q1 versus December, really coming from price. Our cost base is increasing in the refrigerants we're selling. And that's why we say that don't expect this very high Q1 gross margin to continue for the remainder of the year. Q2 will be lower than where we are now. And certainly, by the time we get to Q4, we would think our gross margins are going to be closer to our long-term forecast for now, which is that low 30%. So that's how the year should progress.

是的。因此，回到我們的庫存和我們的庫存紀律，我們確實看到了庫存美元和第一季度與 12 月相比更高的美元，這實際上來自價格。我們銷售的製冷劑的成本基礎正在增加。這就是為什麼我們說不要期望今年剩餘時間內這種非常高的第一季度毛利率會持續下去。第二季度將低於我們現在的水平。當然，到第四季度時，我們認為我們的毛利率將更接近我們目前的長期預測，即 30% 的低水平。這就是今年應該如何發展的方式。

It's likely whenever you see dollars in inventory, it's always going to be because of price increase not because we've got more pounds in inventory. And we feel like we have done a very good job managing our inventory relative to our customer demands, particularly in light of the experiences we had in the past where we might have carried more inventory than we needed to, and when we had price volatility, we certainly -- as it, when prices went down, were more negatively affected because of the volume. So I think we have the inventory volume in the right place. And I think any further price increase or dollar increases, you'll see on the balance sheet will because the price of the inventory went up.

每當您看到庫存美元時，很可能總是因為價格上漲，而不是因為我們有更多的庫存。我們覺得我們在根據客戶需求管理庫存方面做得非常好，特別是考慮到我們過去的經驗，我們可能持有比我們需要的更多的庫存，並且當我們出現價格波動時，我們當然 - 因為它，當價格下跌時，由於數量而受到更大的負面影響。所以我認為我們的庫存量在正確的地方。而且我認為任何進一步的價格上漲或美元上漲，你會在資產負債表上看到，因為庫存價格上漲。

Helpful. Maybe to dig into that gross margin statement. So if you exit the year Q4 closer to that 30% or low 30% and it just kind of works its way lower throughout the year. Based on where Q1 came in, I mean that for the year, it implies something decently better than where 2021 was at 37%. Can you square and reconcile kind of the statement that you expect full year to be similar year-over-year and then what you just said kind of the cadence.

有幫助。也許要深入研究該毛利率聲明。因此，如果您在接近 30% 或低 30% 的地方退出第四季度，它就會在全年中以較低的方式運行。根據第一季度的情況，我的意思是，就今年而言，這意味著比 2021 年的 37% 要好得多。你能否將你預計全年與去年同期相似的說法與你剛才所說的節奏相提並論。

Well, again, we just think that starting in Q2, you're going to see a retraction on the margin percentage. But on an overall basis, we thought the 2022 year gross margins might have been lower towards that 30, 31, 32 kind of number. Clearly, we think based on Q1, expecting a retraction in the margins throughout Q2, Q3, and particularly Q4, we think we're going to be able to achieve something similar to that of last year.

好吧，我們只是認為從第二季度開始，您將看到利潤率下降。但總的來說，我們認為 2022 年的毛利率可能會低於 30、31、32 這樣的數字。顯然，我們認為基於第一季度，預計整個第二季度、第三季度，尤其是第四季度的利潤率會下降，我們認為我們將能夠實現與去年類似的目標。

(Operator Instructions) Thank you, ladies and gentlemen this concludes our Q&A session and conference call. Thank you for attending today's presentation. You may now disconnect.

（操作員說明）女士們先生們，謝謝你們，我們的問答環節和電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。

Sorry, I'd like to-- excuse me. Thank you-- I'd like to thank our employees for their continued support and dedication to our business without the hard work of oral employees. We would not be able to achieve these results. And I want to thank again our long-term shareholders and those that recently joined us for their support. Thank you, everyone, for participating in this evening's conference call, and we look forward to speaking with you after the second quarter results. Have a good night, everybody.

對不起，我想——對不起。謝謝——感謝我們的員工，感謝他們對我們事業的一如既往的支持和奉獻，沒有口頭員工的辛勤工作。我們將無法實現這些結果。我要再次感謝我們的長期股東和最近加入我們的股東的支持。感謝大家參加今晚的電話會議，我們期待在第二季度業績公佈後與您交談。大家晚上好