康寶萊 (HLF) 2018 Q4 法說會逐字稿

Good afternoon, and thank you for joining the Fourth Quarter and Full Year 2018 Earnings Conference Call for Herbalife Nutrition Ltd. On the call today is Michael Johnson, the company's Chairman and CEO, John DeSimone, the company's Co-President and Chief Strategic Officer; and Dr. John Agwunobi, the company's Co-President and Chief Health and Nutrition Officer; and Eric Monroe, the company's Director, Investor Relations. I would now like to turn the call over to Eric Monroe to read the company's safe harbor language.

下午好，感謝您參加康寶萊營養有限公司 2018 年第四季和全年財報電話會議。今天參加電話會議的是公司董事長兼執行長 Michael Johnson、公司聯席總裁兼首席策略長約翰·德西蒙 (John DeSimone)；以及該公司聯合總裁兼首席健康與營養官 John Agwunobi 博士；以及公司投資者關係總監 Eric Monroe。我現在想將電話轉給埃里克·門羅（Eric Monroe），閱讀該公司的安全港語言。

Before we begin, as a reminder, during this conference call, we may make forward-looking statements within the meaning of the Federal Securities Laws. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated.

在我們開始之前，提醒一下，在本次電話會議期間，我們可能會做出聯邦證券法含義內的前瞻性陳述。這些陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與討論或預期的結果有重大差異。

For a complete discussion of risks associated with these forward-looking statements in our business, we encourage you to refer to today's earnings release and our SEC filings, including our most recent annual report on Form 10-K. Our forward-looking statements are based upon information currently available to us. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any future events or circumstances or to reflect the occurrence of unanticipated events, except as required by law.

為了全面討論與我們業務中的這些前瞻性陳述相關的風險，我們鼓勵您參考今天的收益報告和我們向 SEC 提交的文件，包括我們最新的 10-K 表格年度報告。我們的前瞻性陳述是基於我們目前掌握的資訊。我們不承擔更新或發布任何前瞻性聲明的任何修訂或報告任何未來事件或情況或反映意外事件發生的義務，除非法律要求。

In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. generally accepted accounting principles, referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner, as discussed in greater detail in the supplemental schedules to our earnings release.

此外，在本次電話會議中，可能會討論某些財務績效指標，這些指標與我們根據美國公認會計原則編制的財務報表中包含的可比較指標有所不同，美國證券交易委員會將其稱為非公認會計準則財務指標。我們相信，這些非公認會計原則財務指標有助於管理層和投資者以更有意義和一致的方式評估我們的業績並準備各時期的經營業績，正如我們收益發布的補充時間表中更詳細討論的那樣。

A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release submitted to the SEC. These reconciliations together with additional supplemental information are also available at the Investor Relations section of our website herbalife.com. Additionally, when management makes reference to volumes during this conference call, they are referring to volume points. I will now turn the call over to our Chairman and CEO, Michael Johnson.

這些非 GAAP 指標與最具可比性的 GAAP 財務指標的調整表包含在我們提交給 SEC 的收益新聞稿中。這些調節表以及其他補充資訊也可在我們網站 herbalife.com 的投資者關係部分取得。此外，當管理階層在本次電話會議期間提到交易量時，他們指的是交易量點。我現在將把電話轉給我們的董事長兼執行長邁克爾·約翰遜。

Good afternoon, everyone. Thank you for joining us on the call today. Let me start out by saying that our momentum at Herbalife Nutrition is as strong as ever. It's great to be back on this call with you and in resuming my former role, I'm really excited about continuing to propel us toward the future, building off these tremendous fourth quarter results that you saw on our press release today. We believe the trajectory of our business is incredibly promising. The progress we have made through innovation, broadening our product portfolio and building out our technology platform to help our distributors improve their productivity and profitability is truly remarkable. As you know, I am extremely familiar with the world-class leadership team that we have overseeing these strategies and I'm confident that we won't miss a beat.

大家下午好。感謝您今天加入我們的電話會議。首先我要說的是，我們康寶萊營養的勢頭一如既往地強勁。很高興能再次與您一起參加這次電話會議，並恢復我以前的角色，我真的很高興能夠繼續推動我們走向未來，在您今天在我們的新聞稿中看到的第四季度的巨大業績的基礎上繼續前進。我們相信我們的業務發展軌跡非常有前途。我們透過創新、擴大產品組合和建構技術平台來幫助我們的經銷商提高生產力和獲利能力所取得的進步確實令人矚目。如你所知，我對我們負責監督這些策略的世界級領導團隊非常熟悉，我相信我們不會錯過任何一個機會。

I have been working close with my good friends and Co-Presidents, Dr. John Agwunobi, and John DeSimone; Chief Operating Officer, Dave Pezzullo; Executive Vice Chairman, Des Walsh and others. As we leverage our momentum and continue to drive our strong performance and growth. I'm incredibly proud of this management team and their hard work and commitment to our goal of being the world's premier nutrition company.

我一直與我的好朋友兼聯合總裁約翰·阿格武諾比 (John Agwunobi) 博士和約翰·德西蒙 (John DeSimone) 密切合作。營運長戴夫‧佩祖洛 (Dave Pezzullo)；執行副主席德斯·沃爾什等人。我們利用我們的勢頭並繼續推動我們強勁的業績和成長。我為這個管理團隊以及他們的辛勤工作和對我們成為世界一流營養品公司的目標的承諾感到無比自豪。

Our company is as strong as ever, and our solid foundation, unmatched enthusiasm and results have positioned us well for long-term growth. Our performance has been outstanding, thanks to the incredible efforts, dedication and skills of our independent distributors and employees. John DeSimone will go into the financial details shortly, but I would like to call out a few highlights from 2018.

我們的公司一如既往地強大，我們堅實的基礎、無與倫比的熱情和成果為我們的長期發展奠定了良好的基礎。我們的業績非常出色，這要歸功於我們的獨立經銷商和員工的巨大努力、奉獻精神和技能。約翰·德西蒙 (John DeSimone) 很快就會討論財務細節，但我想談談 2018 年的一些亮點。

For the full year, we reported net sales growth of over 10% compared to 2017, including year-over-year increases in 8 of our top 10 markets. In terms of volume points, for the full year, we set a new all-time record-high for the company, including growth in 5 of our 6 regions. In 2019, we plan to not only continue our growth, but also to expand our mission around the world, 1 distributor and 1 customer at a time. This is a great time to be part of Herbalife Nutrition and to be leading this talented team of distributors and employees who are committed to continuing this momentum and driving the results. Let me now turn it over to John DeSimone.

與 2017 年相比，我們全年的淨銷售額成長超過 10%，其中 10 大市場中的 8 個市場實現了同比增長。就全年銷售而言，我們創下了公司歷史新高，其中 6 個地區中有 5 個地區實現了成長。2019 年，我們計劃不僅繼續成長，而且還將我們的使命擴展到世界各地，一次 1 個經銷商和 1 個客戶。現在是成為康寶萊營養品的一員並領導這支由經銷商和員工組成的才華橫溢的團隊的好時機，他們致力於繼續這一勢頭並推動成果。現在讓我把它交給約翰·德西蒙。

Today, I will start by discussing the company's fourth quarter and full year 2018 reported and adjusted results, which include key market highlights. I will then review our first quarter and full year 2019 guidance. Fourth quarter net sales of $1.2 billion represents an increase of 9% on a reported basis, compared to the fourth quarter in 2017, full year 2018 worldwide reported net sales of $4.9 billion represent a year-over-year increase of 10%. Volume points for the fourth quarter 2018 were approximately $1.5 billion, which represents an increase of approximately 11.8% compared to the fourth quarter of 2017 and benefited by approximately 70 basis points from a number of tests we implemented during 2018 related to changes in product volume point values. This is the largest fourth quarter volume point results in the company's history and represents the third consecutive quarterly volume point record as both the second and third quarter's volume point results were all-time highs, respectively.

今天，我將首先討論該公司 2018 年第四季和全年報告和調整後的業績，其中包括主要市場亮點。然後我將回顧我們的 2019 年第一季和全年指引。第四季淨銷售額為 12 億美元，按報告計算成長 9%，與 2017 年第四季相比，2018 年全年全球報告淨銷售額為 49 億美元，年成長 10%。2018 年第四季的銷售點約為15 億美元，與2017 年第四季相比成長約11.8%，並受益於我們在2018 年期間實施的與產品銷售點變化相關的多項測試約70 個基點價值觀。這是該公司史上最大的第四季銷售點結果，也是連續第三個季度銷售點記錄，因為第二季和第三季的銷售點結果分別創下歷史新高。

It is, therefore, no surprise that full year 2018 volume points of approximately $5.9 billion was an all-time record-high. 4 of our 6 regions, EMEA, APAC, China and Mexico, set volume point records in 2018 although Mexico was aided by approximately 180 basis points from the previously discussed volume point value adjustments.

因此，2018 年全年成交量約 59 億美元創歷史新高也就不足為奇了。我們6 個地區中的4 個（歐洲、中東和非洲、亞太地區、中國和墨西哥）在2018 年創下了成交量記錄，儘管墨西哥因之前討論的成交量點值調整而獲得了約180 個基點的幫助。

With respect to earnings related to the U.S. tax reform, the company recorded a noncash charge of approximately $29.5 million. This represents an additional valuation allowance on foreign tax credit carryforward, resulted from the finalization of the provisional charge within the 1-year measurement period together with the further guidance released by the Treasury Department in Q4. Due to this noncash charge during the quarter, we reported a net income of approximately $48.9 million or $0.34 per diluted share. For the fourth quarter, adjusted earnings per adjusted diluted share were $0.63.

關於與美國稅制改革相關的收益，該公司記錄了約 2,950 萬美元的非現金費用。這是外國稅收抵免結轉的額外估值津貼，是由於在一年計量期內最終確定臨時費用以及財政部在第四季度發布的進一步指導而產生的。由於本季的非現金費用，我們報告的淨利潤約為 4,890 萬美元，即稀釋後每股收益 0.34 美元。第四季度，調整後稀釋每股收益為 0.63 美元。

Note that our adjusted results include expenses related to the China Growth and Impact Investment Program of approximately $8.2 million or $0.04 per share that was excluded from our guidance.

請注意，我們調整後的結果包括與中國增長和影響力投資計劃相關的費用，約為 820 萬美元或每股 0.04 美元，該費用未包括在我們的指導中。

Despite our adjusted EPS, including these expenses that were excluded from our guidance, we still exceeded the high end of our guidance range of $0.60 per share. As a reminder, these expenses, while fungible, are effectively funded by China grants that have already been excluded from our adjusted results. These expenses were not incurred during the comparable period of the fourth quarter 2017 and are not included in our future guidance.

儘管我們調整了每股收益，包括這些不包括在我們的指導範圍內的費用，但我們仍然超出了每股 0.60 美元的指導範圍的上限。提醒一下，這些費用雖然可以替代，但實際上是由中國贈款資助的，而這些贈款已被排除在我們調整後的結果之外。這些費用並未在 2017 年第四季的可比較期間發生，也不包含在我們未來的指導中。

Additionally, our adjusted EPS figures continue to exclude items we consider to be outside of normal company operations or we believe will be useful to investors when analyzing period-over-period comparisons of our results. Please refer to our fourth quarter 2018 earnings press release for additional details on these adjustments. The impact of currency fluctuations represented a year-over-year headwind of approximately $0.06 per share on results for the fourth quarter and approximately $0.05 per share on a full year basis.

此外，我們調整後的每股盈餘數據繼續排除我們認為不屬於公司正常營運範圍的項目，或我們認為在分析我們業績的同期比較時對投資者有用的項目。有關這些調整的更多詳細信息，請參閱我們的 2018 年第四季度收益新聞稿。貨幣波動的影響對第四季業績造成每股約 0.06 美元的同比阻力，對全年業績造成每股約 0.05 美元的同比阻力。

Reported gross margin for the fourth quarter of 81% increased by approximately 20 basis points compared to the prior year period. The increase was primarily driven by the favorable impact of retail price increases and country mix, partially offset by unfavorable cost changes related to self manufacturing and strategic sourcing and the negative impact of foreign currency fluctuations. Fourth quarter 2018 reported an adjusted SG&A as a percentage of net sales were 40.9% and 40.6%, respectively. Excluding China member payments, adjusted SG&A as a percentage of net sales was 30%, approximately 40 basis points higher than the fourth quarter 2017, primarily driven by the timing of event spending where a large distributor event which was held in Q3 of 2017 was held in the fourth quarter of 2018.

報告第四季毛利率為 81%，較去年同期成長約 20 個基點。這一增長主要是受到零售價格上漲和國家組合的有利影響所推動的，但部分被與自我製造和戰略採購相關的不利成本變化以及外匯波動的負面影響所抵消。2018 年第四季調整後的銷售、管理及行政費用佔淨銷售額的百分比分別為 40.9% 及 40.6%。不包括中國會員付款，調整後的銷售、管理及行政費用佔淨銷售額的百分比為30%，比2017 年第四季高出約40 個基點，這主要是由於2017 年第三季舉辦的大型經銷商活動的活動支出時間推動的2018年第四季。

Our fourth quarter reported effective tax rate was approximately 57% and was primarily driven by the previously mentioned valuation allowance of $29.5 million. Our adjusted effective tax rate was 26.4%, which was lower than our expectations primarily due to the impact of geo mix.

我們第四季報告的有效稅率約為 57%，主要是受到前面提到的 2,950 萬美元估值津貼的推動。我們調整後的有效稅率為26.4%，低於我們的預期，主要是由於地理結構的影響。

Turning to full year 2018, reported net income was $296.6 million or $1.98 per diluted share compared to reported net income of $213.9 million or $1.29 per diluted share for the full year 2017. 2018 adjusted diluted EPS was $2.88 per adjusted diluted share, reflecting a 19% increase compared to the $2.43 per diluted share for the full year 2017.

2018 年全年，報告淨利潤為 2.966 億美元，即稀釋後每股收益 1.98 美元，而 2017 年全年報告淨利潤為 2.139 億美元，即稀釋後每股收益 1.29 美元。2018 年調整後稀釋每股收益為調整後稀釋每股 2.88 美元，較 2017 年全年稀釋每股 2.43 美元成長 19%。

Our business generated substantial cash flow from operations in 2018. $648 million in cash flow from operations represents an approximate 10% increase from the $591 million generated in 2017. 2018 reported and adjusted results were negatively impacted by expenses of approximately $14 million or $0.07 per share related to the China Growth and Impact Investment Program as well as approximately $0.05 per share from foreign currency fluctuation.

2018年，我們的業務產生了大量的營運現金流。營運現金流為 6.48 億美元，較 2017 年的 5.91 億美元成長約 10%。2018 年報告和調整後的業績受到與中國成長和影響力投資計畫相關的約 1,400 萬美元或每股 0.07 美元的費用以及每股約 0.05 美元的外匯波動的負面影響。

Our full year adjusted tax rate of 24.8% benefited by approximately 260 basis points or $0.10 per adjusted diluted share due to excess tax benefits from the exercise of equity grants. As a reminder, our 2019 guidance does not include any future potential tax effects from equity grants that could benefit our tax rate.

由於行使股權授予帶來的超額稅收優惠，我們的全年調整後稅率為 24.8%，調整後稀釋後每股收益增加約 260 個基點或 0.10 美元。提醒一下，我們 2019 年的指導意見不包括股權授予對未來可能有利於我們稅率的任何潛在稅收影響。

Now let me shift to a review of our regional and market highlights. The strength of the U.S. business continued into the fourth quarter with volume increasing by 12% compared to the fourth quarter of 2017. We ended 2018 with year-over-year growth in every single quarter. The 2K supervisor qualification pilot continues to help drive distributor engagement and has been extended until the end of 2019.

現在讓我回顧一下我們的區域和市場亮點。美國業務的強勁勢頭持續到第四季度，銷量較 2017 年第四季成長 12%。2018 年結束時，我們每季都實現了年成長。2K 主管資格試行繼續協助推動經銷商參與，並已延長至 2019 年底。

Last quarter, we started testing a small volume point value change on a few products. These tests benefited the comparison in the quarter by approximately 180 basis points. In China, our Q4 volume points increased by 4%, although we did experience growth in the quarter, the rate decelerated from our prior 2 quarters' results as the comparison was more challenging this quarter.

上個季度，我們開始測試一些產品的小量點數值變化。這些測試使本季的比較受益約 180 個基點。在中國，我們第四季度的銷量點增長了 4%，儘管我們在該季度確實實現了增長，但由於本季度的比較更具挑戰性，因此增速較前兩個季度有所放緩。

Turning to Mexico, volume points grew by 10% and recorded the largest fourth quarter in Mexico's history. The volume point value changes we discussed last quarter benefited the comparison in the quarter by approximately 180 basis points. The active member program continued to help fuel the market with new member activity and productivity rates, both increasing as compared to the prior year period.

轉向墨西哥，第四季成交量成長了 10%，創下墨西哥史上最大增幅。我們上季討論的成交量點值變化使本季的比較受益約 180 個基點。活躍會員計畫繼續透過新會員活動和生產力推動市場發展，與去年同期相比，這兩項指標均有所提高。

The Asia-Pacific region reported a 30% year-over-year increase, which was the fourth quarter in a row the region has set a new all-time record volume point performance. The EMEA region grew by 11% in the fourth quarter, taking the number of consecutive quarters with growth in EMEA up to 35. The volume point growth in the quarter was led by Spain, Turkey and South Africa, all of which grew over 20%.

亞太地區年增 30%，這是該地區連續第四個季度創下新的歷史記錄。EMEA地區第四季成長11%，使EMEA地區連續成長的季度數達到35個。本季銷售點成長由西班牙、土耳其和南非引領，這些國家的增幅均超過 20%。

Let me now move ahead to guidance. For the full year 2019, much of our guidance remains unchanged from the guidance provided last quarter. Net sales guidance increased slightly and we're now expecting to grow in a range of 4% to 8%, up from the previous range of 2.8% to 6.8%. For the first quarter of 2019, we estimate net sales to be within a range of 0.5% to 4.5% growth, which reflects an approximate 600 basis point currency headwind. Volume point growth is expected to be in the range of 4% to 8%.

現在讓我繼續指導。對於 2019 年全年，我們的大部分指導意見與上季提供的指導意見保持不變。淨銷售額指引略有上升，我們目前預期成長範圍為 4% 至 8%，高於先前的 2.8% 至 6.8%。對於 2019 年第一季度，我們預計淨銷售額將成長 0.5% 至 4.5%，反映出約 600 個基點的貨幣逆風。銷量點成長預計在 4% 至 8% 之間。

First quarter reported diluted EPS is estimated to be in a range of $0.51 to $0.61 and adjusted diluted EPS guidance is estimated to be in a range of $0.60 to $0.70 per share. Capital expenditures for the first quarter are expected to be within a range of $30 million to $40 million. And first quarter effective tax rate guidance is expected to be between 30% and 34% on a reported basis, and 27% and 31% on an adjusted basis. I will now turn the call over to Dr. John Agwunobi to review some of the strategic highlights from the quarter.

第一季報告的稀釋每股收益預計在 0.51 美元至 0.61 美元之間，調整後的稀釋每股收益指引預計在每股 0.60 美元至 0.70 美元之間。第一季的資本支出預計在3000萬至4000萬美元之間。根據報告，第一季有效稅率指引預計為 30% 至 34%，調整後為 27% 至 31%。我現在將把電話轉給 John Agwunobi 博士，回顧本季的一些策略亮點。

Thank you, John. After our last earnings call, we hosted many of you at our Investor Day in New York. Over the course of that meeting, we spoke in detail about the key strategies we believe are the growth engines for our business. Let me provide an update on our product, technology and distributor difference strategy. In my role as Co-President and Chief Health and Nutrition Officer, one of my priorities is to ensure that the products we offer to our distributors are science-based and fit within our global nutrition philosophy. I take pride in our product strategy and how we are providing our distributors the opportunity to sell more products to existing customers, appealing to new customers and attracting new distributors.

謝謝你，約翰。在我們上次的財報電話會議之後，我們在紐約的投資者日招待了你們中的許多人。在那次會議期間，我們詳細討論了我們認為是我們業務成長引擎的關鍵策略。讓我介紹一下我們的產品、技術和經銷商差異化策略的最新情況。身為聯席總裁兼首席健康和營養官，我的首要任務之一是確保我們向經銷商提供的產品以科學為基礎，並符合我們的全球營養理念。我對我們的產品策略以及我們如何為經銷商提供向現有客戶銷售更多產品、吸引新客戶和新經銷商的機會感到自豪。

An example of this was the introduction of our new High Protein Iced Coffee, which many of you sampled at Investor Day. Our iced coffee drink mix has only 2 grams of sugar per serving and it gives consumers a protein and energy-packed way to start their day, enjoy an afternoon pick-me-up or savor an evening treat. At Investor Day, you were also able to see firsthand, our distributors' excitement around this new product category and to hear how they use this product to attract new customers as well as create an incremental sale to existing customers by fulfilling a brand-new daypart.

一個例子是我們新推出的高蛋白冰咖啡，很多人在投資者日都品嚐過。我們的冰咖啡混合物每份僅含 2 克糖，為消費者提供富含蛋白質和能量的方式來開始新的一天，享受午後提神或品嚐晚間美食。在投資者日，您還可以親眼目睹我們的經銷商對這個新產品類別的興奮，並聽到他們如何使用該產品吸引新客戶，並透過完成全新的一天時段來增加對現有客戶的銷售。

In addition to coffee, around the globe, we launched approximately 100 new products in the fourth quarter, bringing our total number of new products launched in 2018 to over 250. At Investor Day, we also detailed our technology strategy, which is focused on building on our robust back-end infrastructure and developing front-end tools designed to help our distributors improve their productivity and profitability, while increasing distributor to customer connectivity. It also enhances customer experience with a high touch and high-tech set of solutions.

除咖啡外，我們在第四季度在全球推出了約 100 種新產品，使 2018 年推出的新產品總數超過 250 種。在投資者日，我們還詳細介紹了我們的技術策略，該策略的重點是建立強大的後端基礎設施和開發前端工具，旨在幫助我們的分銷商提高生產力和盈利能力，同時增強分銷商與客戶的聯繫。它還透過高接觸和高科技的解決方案增強了客戶體驗。

For our Nutrition Clubs, we developed a number of enhanced technologies for both operators and consumers. This suite of tools will make it easier to own and operate a nutrition club by helping operators set up, manage and grow their nutrition club businesses. The distributor-facing tool is expected to be released in May of 2019. We're also developing a customer-facing nutrition club app, customers will be able to stay connected with their nutrition club and their distributors, browse the club menu and just like your favorite coffee house or restaurant, they will be able to preorder right off the menu. Their favorite shake, tea, aloe or other drink or snack will be waiting for them when they arrive. The customer app is scheduled to be released in July at our North American extravaganza.

對於我們的營養俱樂部，我們為營運商和消費者開發了許多增強技術。這套工具將幫助營運商建立、管理和發展他們的營養俱樂部業務，從而使擁有和經營營養俱樂部變得更加容易。該面向經銷商的工具預計將於 2019 年 5 月發布。我們也正在開發一個面向客戶的營養俱樂部應用程序，客戶將能夠與他們的營養俱樂部及其經銷商保持聯繫，瀏覽俱樂部菜單，就像您最喜歡的咖啡館或餐廳一樣，他們將能夠立即預訂菜單。當他們到達時，他們最喜歡的奶昔、茶、蘆薈或其他飲料或小吃將等著他們。該客戶應用程式計劃於 7 月在我們的北美盛會上發布。

Additionally, in January, we launched a full release of HN-connect to our entire U.S. distributor base. To ensure our distributors are educated on how to take advantage of the tool's robust capabilities, we also announced upcoming training webinars for the tool in February. Even with our focus on products and technology, I believe Herbalife Nutrition is a people business, a relationship business. Our distributors invite their customers to be a part of a community, part of a team that can help them achieve their desired results.

此外，一月份，我們向整個美國經銷商群推出了完整版本的 HN-connect。為了確保我們的經銷商了解如何利用該工具的強大功能，我們也宣布即將在二月舉辦該工具的培訓網路研討會。儘管我們專注於產品和技術，但我相信康寶萊營養是一個以人為本的企業，一個關係企業。我們的經銷商邀請他們的客戶成為社群的一部分，成為可以幫助他們實現預期結果的團隊的一部分。

It's more than just selling products. At the end of the day, our distributors sell results. And this is our biggest competitive advantage. We call it the distributor difference. As a company, it's our responsibility to support our distributors with not only technology, tools and some of the world's finest high-quality products, but also with education and training. They need that training to effectively sell the products with success.

這不僅僅是銷售產品。最終，我們的經銷商會出售結果。這是我們最大的競爭優勢。我們稱之為經銷商差異。作為一家公司，我們有責任不僅為我們的經銷商提供技術、工具和一些世界上最優質的產品，而且還提供教育和培訓。他們需要培訓才能有效地成功銷售產品。

One way we do this is by providing world-class training led by some of the industry's leading experts at our sales events. We recently hosted several events for our future distributor leaders in Mexico, in Las Vegas and in Miami, in order to share best practices and learnings as well as to inspire and motivate.

我們實現這一目標的方法之一是在我們的銷售活動中提供由一些行業領先專家領導的世界一流的培訓。最近，我們在墨西哥、拉斯維加斯和邁阿密為未來的經銷商領導者舉辦了幾場活動，以分享最佳實踐和經驗教訓，並激勵人心。

One thing that is evident at these events is the success we are seeing in our distributors progressing up our marketing plan. Our tremendous marketing plan performance in 2018 is a testament to our corporate and distributor leadership. We had the second highest number of new President's team qualifiers globally in our history and highest in the last 5 years.

在這些活動中顯而易見的一件事是我們看到經銷商在推進我們的行銷計劃方面取得了成功。2018 年我們優秀的行銷計畫績效證明了我們在企業和經銷商方面的領導地位。我們的新總統團隊預選賽數量在全球範圍內位居第二，也是過去 5 年來最高的。

In the U.S., and in India, we're seeing extremely high levels of distributor engagement, which we believe is an indication that we can continue to implement segmentation successfully in markets where our distributors want to. Segmentation provides Herbalife Nutrition and our distributors with improved visibility to those who join to pursue the business opportunity or to those who join simply to access the products at a discount. We believe there are numerous additional benefits of segmentation, including an improved customer experience through personalized, product-oriented communication, a simple low-cost sign-up and a natural progression for those who eventually choose to become business builders.

在美國和印度，我們看到經銷商的參與度極高，我們相信這表明我們可以繼續在經銷商想要的市場中成功實施細分。細分為康寶萊營養品和我們的經銷商提供了更高的知名度，讓那些加入是為了尋求商業機會的人或那些加入只是為了以折扣價獲得產品的人。我們相信細分還有許多額外的好處，包括透過個人化、以產品為導向的溝通來改善客戶體驗、簡單的低成本註冊以及最終選擇成為業務創建者的自然發展。

In fact, in December 2018, we launched segmentation in Italy, and have plans to implement the same in Brazil in the second quarter of this year. Finally, today, we announced record retention results for the last 12 months requalification period ending in January of 2019. The approximately 68% retention rate is reflective of the ongoing sustainability of our business and the opportunity we offer to our distributors.

事實上，2018年12月，我們在義大利啟動了細分，並計劃在今年第二季在巴西實施同樣的細分。最後，今天，我們宣布了截至 2019 年 1 月的過去 12 個月重新認證期間的保留結果記錄。約 68% 的保留率反映了我們業務的持續可持續性以及我們為經銷商提供的機會。

As you can tell, I'm extremely excited about the future and I'm optimistic about where we are going. This concludes our prepared remarks. Operator, please open the lines for questions.

如您所知，我對未來感到非常興奮，並且對我們的發展方向感到樂觀。我們準備好的演講到此結束。接線員，請打開提問線。

(Operator Instructions) Our first question is from the line of Tim Ramey from Pivotal Research Group.

（操作員說明）我們的第一個問題來自 Pivotal Research Group 的 Tim Ramey。

Couple of questions. Dr. John, I was struck by the number of new products you said you announced, and it almost seems like the number is too big. I mean, I don't know how many that comes down to in any one market. I'm hoping you're not asking distributors in market X to learn a hundred new things. Tell me about your ability to get people to focus on that number of new products.

有幾個問題。約翰博士，您所說的宣布的新產品數量讓我感到震驚，而且這個數字似乎太大了。我的意思是，我不知道在任何一個市場中都會有多少這樣的情況。我希望您不會要求 X 市場的經銷商學習一百種新東西。告訴我你有能力讓人們關注這麼多新產品。

Yes. Tim, thanks for your question. Just to allay any concern you might have, the number's actually spread around the entire world; it is not in any one market, obviously. A lot of it was flavor extensions in countries that needed more flavors either seasonally or to match up their specific cultural and social needs. But there were some -- obviously, there were some really big new products that were new to the entire portfolio. Coffee we've mentioned, a couple of flavors there. So as you know, we tend to count different flavors as each as a different SKU, so different numbers.

是的。提姆，謝謝你的問題。為了減輕您的擔憂，這個數字實際上遍布全世界；顯然，它不屬於任何一個市場。其中很大一部分是在那些需要更多口味的國家/地區進行風味擴展，這些國家要么季節性地需要更多口味，要么滿足其特定的文化和社會需求。但顯然，有一些非常重要的新產品對整個產品組合來說是全新的。我們提到的咖啡，有幾種口味。如您所知，我們傾向於將不同口味視為不同的 SKU，因此數字也不同。

Yes. Sounds good. And then John, on the 2K qualification, I was not aware that there was a sunset to that, maybe I had missed that at some point. Has that always been the plan that this was not the new way of going forward for the duration?

是的。聽起來不錯。然後約翰，在 2K 資格賽上，我不知道有日落，也許我在某個時候錯過了。這是否一直是計劃，這不是在此期間前進的新方式？

Yes. Look, it doesn't mean it won't be the new way. Generally, when we do anything that's a qualification change, we do it as a promotion in order to test if there are any unintended consequences and make sure we accomplish what we want to accomplish. So we just want another year under our belt. So I wouldn't say that means we don't expect it to be permanent, but we have not yet implemented it as permanent as we go through 1 more year of the results and seeing how the performance is.

是的。聽著，這並不意味著它不會成為新方式。一般來說，當我們做任何資格變更的事情時，我們都會將其作為晉升來測試是否會產生任何意想不到的後果，並確保我們實現我們想要實現的目標。所以我們只想再過一年。所以我不會說這意味著我們不希望它是永久性的，但我們還沒有將其永久實施，因為我們經過了一年多的結果並看看性能如何。

Right. I saw this piece in the 10-K on the 100-day program in China, I assume that had no impact on the fourth quarter since it was announced in the first quarter. But is there anything else other than comps that would explain the relatively slower growth rate in China in the 4Q?

正確的。我在中國百日計畫的10-K中看到了這篇文章，我認為自從第一季宣布以來，這對第四季沒有影響。但除了比較之外，還有什麼其他因素可以解釋中國第四季成長率相對較慢的原因嗎？

Yes. So I'll break it into 2 buckets. So let's talk Q2, and then we'll talk -- I mean Q4, excuse me, and then we'll talk Q1. So in Q4, it was a tough comp, right? We went from a negative growth in Q3 of last year to almost a 10% growth in Q4. So if you look at the 2-year stack, we're pretty comparable to where we were in Q3 and still much ahead of where we were in Q2. But I do think it primarily had to do with just people working really hard during the year and just relaxing towards the end of the year, because it's really towards the end of the year where we saw some weakness in China. So it did underperform our expectations, but I don't think it's anything systemic.

是的。所以我會把它分成兩個部分。所以我們先談談 Q2，然後我們再談——我的意思是 Q4，對不起，然後我們再談 Q1。所以在第四季度，這是一場艱難的比賽，對吧？我們從去年第三季的負成長變為第四季近 10% 的成長。因此，如果你看一下 2 年的堆棧，我們與第三季的情況相當，但仍然遠遠領先於第二季的情況。但我確實認為這主要與人們在這一年中非常努力地工作並在年底放鬆一下有關，因為在年底我們確實看到了中國的一些弱點。所以它確實沒有達到我們的預期，但我不認為這是系統性的。

Having said that, when you look into Q1, there is this 100-day program. It was not directed at us, but us and a lot of other competitors have, as a result, canceled most if not all of our meetings during the first quarter, and that could and will, we expect have an impact on Q1, it doesn't change our expectations beyond Q1. I think the 100 days ends sometimes in early April, maybe it's mid-April. So Q2 should be fine and as should the rest of the year, but it will definitely have an impact in Q1, it will be reflective in our performance.

話雖如此，當你查看第一季時，有一個 100 天計劃。它不是針對我們的，但我們和許多其他競爭對手因此取消了第一季度的大部分（如果不是全部）會議，我們預計這可能並將會對第一季度產生影響第一季度之後我們的預期不會改變。我認為這100天有時會在四月初結束，也許是四月中旬。因此，第二季度應該很好，今年剩餘時間也應該很好，但它肯定會對第一季產生影響，這將反映在我們的表現中。

(Operator Instructions) And our next question is from the line of Beth Kite from Citi Research.

（操作員說明）我們的下一個問題來自花旗研究部的 Beth Kite。

Excellent. If I may, I'll just tag on to Tim's question a little bit more. Just for the investors in the financial side to better understand, what else do you understand about this 100-day campaign in China?

出色的。如果可以的話，我會再稍微談談提姆的問題。為了讓金融方面的投資人更了解，對於這次中國的百日活動，你還有什麼了解？

So look, I can't say that I -- you never know everything, but the way it's been explained, it's -- it was product-claim based, nothing to do with our company directly. But -- look, in China, I think, their -- one of their objectives is social stability. And I think there was a lot of negative press around product a claim that brought attention to the types of products we sell, which are functional foods and health care products. And so that started this, and it was that negativity that just propelled the government, I believe, to take a closer look at the industry. But again, it's not -- it's not Herbalife, this is the industry.

所以聽著，我不能說我——你永遠不會知道一切，但按照解釋的方式，它是——它是基於產品聲明的，與我們公司沒有直接關係。但是，我認為，在中國，他們的目標之一是社會穩定。我認為圍繞產品的聲明存在著許多負面新聞，這引起了人們對我們銷售的產品類型的關注，這些產品是功能性食品和保健品。我相信，正是這種消極情緒促使政府更仔細地檢視這個行業。但我再說一遍，這不是康寶萊，這就是這個行業。

Got it. And then for the first quarter, since it is at least 30 days into this investigation by now, a little bit more, have you seen a material change in sales? Are you hoping things get better for sort of the second 2/3 of this 100-day window? Or kind of how should we think about progressing through the first quarter versus what you've experienced and what you anticipate you might experience in China related to this?

知道了。那麼對於第一季度，由於調查到現在已經過了至少 30 天，再多一點，您是否看到銷售額發生了重大變化？您是否希望在這 100 天窗口的後 2/3 時間內情況會有所改善？或者我們應該如何考慮第一季的進展以及您所經歷的以及您預計在中國可能會經歷的與此相關的情況？

Yes, it's hard to tell because it started in January, and it definitely impacted January sales, but then February 5 through the 15th was China's -- China New Year. And during that time period, which just ended, our sales are always weak. And so it's really tough to tell how it's going to bounce back. So I just -- it's our expectations that Q1 will be a challenging quarter for our China business. And again, just to clarify earlier, it's not even a direct selling challenge. It's both direct selling and nondirect selling regarding products that are health care and functional foods.

是的，這很難說，因為它從 1 月開始，肯定影響了 1 月的銷售，但 2 月 5 日到 15 日是中國的農曆新年。在剛結束的那段時間裡，我們的銷售總是疲軟。因此，很難判斷它將如何反彈。所以我只是——我們預計第一季對於我們的中國業務來說將是一個充滿挑戰的季度。再次強調一下，這甚至不是直銷挑戰。保健品和功能性食品產品分為直銷和非直銷。

Got it. Okay. Well thanks. And then, I guess, turning for you -- forward into your full year sales growth guidance, I think, the implied is that it rose, right? Both foreign exchanges to be a slightly less pressure and local currency sales growth guide has gone up, is that right for full year 2019?

知道了。好的。非常感謝。然後，我想，轉向你的全年銷售成長指導，我認為，這意味著它的成長，對吧？外匯壓力略有減輕，本幣銷售成長指引上升，適合2019年全年嗎？

Local sales -- yes, local currency sales and reported net sales have been increased slightly, correct.

當地銷售額——是的，當地貨幣銷售額和報告的淨銷售額略有增加，這是正確的。

Great. And then can you tell us any particular regions that maybe other than China, where you potentially changed your expectations for the year versus guidance in late October?

偉大的。然後，您能否告訴我們除中國以外的任何特定地區，您可能在哪些地區相對於 10 月底的指引改變了今年的預期？

So it would be nothing -- by the way, nothing changed materially. So let me start off there, there has been nothing material. Generally, what happens is you finish Q4 and you relook at all your quarters, which is what we do for budgetary purposes when we update. And there was a pretty high performance level in Q4, and so we took some things up in couple of regions, but nothing material. So you can't pinpoint this to one. It's kind of broad, pretty broad small increases offset by some minor decreases in certain regions. So more of a mix issue. It didn't deliver a lot for the bottom line, it delivered about $0.03 to the bottom line, so we didn't change our bottom line guidance from the mix change that we saw in our guidance difference between now and last quarter.

所以這沒什麼——順便說一句，沒有任何實質改變。讓我從這裡開始，沒有任何實質內容。一般來說，發生的情況是您完成第四季度並重新審視所有季度，這就是我們在更新時出於預算目的所做的事情。第四季的表現水準相當高，因此我們在幾個地區採取了一些措施，但沒有什麼實質內容。所以你無法確定這一點。這是一種廣泛的、相當廣泛的小幅增長，被某些地區的一些小幅下降所抵消。所以更多的是一個混合問題。它並沒有帶來太多的利潤，它為利潤帶來了大約 0.03 美元，所以我們沒有改變我們在現在和上個季度的指導差異中看到的組合變化的利潤指導。

Okay. Great. For 2 countries in particular, it looks like from the full year local currency sales performance in India that the fourth quarter was, again, quite strong. Can you talk to us about India? Are we -- I mean, it's had such great growth here to end '18, are we still sort of in the early days of still seeing exceptionally strong growth? When would you expect that to moderate? And then while I'm asking about countries as well, I feel like Brazil was probably a bit of a disappointment in the fourth quarter. So kind of where do we go from here with Brazil?

好的。偉大的。特別是對於兩個國家來說，從印度全年以當地貨幣計算的銷售業績來看，第四季再次表現強勁。您能和我們談談印度嗎？我的意思是，到 18 年底為止，我們的成長如此之快，我們是否仍處於早期階段，仍能看到異常強勁的成長？您預計這種情況何時會緩和？然後，當我也在詢問國家時，我覺得巴西在第四季可能有點令人失望。那麼巴西隊接下來該何去何從呢？

Yes, so let's start. I'm actually going to add a third country to that. So in India, look, great, great quarter. So we have segmentation in India. 50,000 new preferred members joined in the fourth quarter which, by the way, was more preferred members than joined in the U.S. and the U.S. preferred member program is strong. So definitely a lot of momentum in India. Obviously, these kinds of growth rates, not sustainable. It's going to moderate over time. So I wouldn't -- keep strong double digits is -- you might get double digits for a little while longer, but it's going to moderate into high singles over time in India.

是的，那麼讓我們開始吧。實際上我要添加第三個國家。所以在印度，看起來，很棒，很棒的季度。所以我們在印度有細分。第四季有 50,000 名新加入的優先會員，順便說一句，這比在美國加入的優先會員還要多，而且美國的優先會員計劃很強大。因此，印度的勢頭絕對強勁。顯然，這樣的成長速度是不可持續的。隨著時間的推移，它會有所緩和。所以我不會——保持強勁的兩位數——你可能會在一段時間內保持兩位數，但隨著時間的推移，在印度，它會逐漸變成高單位數。

Brazil, yes, Brazil continues to disappoint. But hopefully, segmentation, which we've launched in April and it's April because of programming requirements. So we're programming it now. Hopefully, that becomes a catalyst. Like, I think, the distributors in Brazil are very engaged and very motivated. Rob Levy just came back from a Brazil event last -- I believe, it was last week and he felt encouraged. So there's some opportunity in Brazil and just kind of throw a thank you to distributors in Korea. Korea for the first time grew almost 10% in volume points in the quarter. So I wanted to make sure we mention that because we've talked about some of the negative performance over time and so we just want to celebrate the positive performance.

巴西，是的，巴西繼續令人失望。但希望是細分，我們在四月推出了它，之所以選擇四月是因為編程要求。所以我們現在正在編程。希望這能成為催化劑。我認為，巴西的經銷商非常積極主動。羅布·利維剛從巴西的一場比賽中回來——我相信是上週，他感到受到了鼓舞。因此，巴西有一些機會，我要向韓國的經銷商表示感謝。韓國本季銷量首度成長近 10%。所以我想確保我們提到這一點，因為我們已經討論了隨著時間的推移出現的一些負面表現，所以我們只想慶祝積極的表現。

Excellent. Great. If I could ask one more of you, John, and then one for Michael. John, I don't think the converts came up just now. So can you kind of give us an update -- pardon me, didn't come up in the prepared comments. Can you give us an update, are you still intending to refinance those? Is there anything along the lines of the converts you can update us on?

出色的。偉大的。如果我能再問你一位，約翰，然後再問一位麥可。約翰，我認為皈依者剛才沒有出現。那麼您能否為我們介紹一下最新情況——請原諒，在準備好的評論中沒有提到。您能為我們提供最新情況嗎？您是否仍打算為這些項目進行再融資？您有什麼關於皈依者的最新消息可以告訴我們嗎？

Yes, it's going to be pretty much the same, which is it's our intention to refinance, but to be in a position to pay it off, should we choose to, that refinance can happen either before the convert is due or when it's due or even after it's due, it just becomes a timing issue. But from an overall leverage standpoint, we have said in the past that we're comfortable with our current leverage. And so if we do choose to pay it down for circumstantial reasons, then we'll just lever up after or we may lever up before. So it's all circumstantial based on the economics of the debt market and also the use of cash.

是的，情況幾乎是一樣的，這是我們進行再融資的意圖，但是為了能夠還清它，如果我們選擇的話，再融資可以在轉換到期之前或到期時進行，或者即使在到期之後，它也只是一個時間問題。但從整體槓桿的角度來看，我們過去曾說過，我們對目前的槓桿水平感到滿意。因此，如果我們確實因環境因素選擇償還債務，那麼我們只會在之後加槓桿，或者我們可能會在之前加槓桿。因此，這一切都取決於債務市場的經濟狀況以及現金的使用。

One of the interesting things to consider, it's -- the purpose of the cash would be a buyback and any buyback we do now if it helps the stock, hurts us when the converts become due because now you have to issue more stock because they're well above the convert price. So that actually creates a little bit of a premium in the purchase price if we buy back stock beforehand. So that's just another consideration to take into account.

需要考慮的有趣的事情之一是，現金的目的將是回購，而我們現在所做的任何回購，如果它有助於股票，那麼當轉換到期時會傷害我們，因為現在你必須發行更多股票，因為它們'遠高於轉換價格。因此，如果我們事先回購股票，這實際上會在購買價格上產生一點溢價。所以這只是另一個需要考慮的因素。

Perfect. And now Michael, quickly, welcome back and great to hear you on the call today. Two questions for you. One, now that you're back, I know you've been obviously active on the board since you were CEO, but is there anything as you come back that you say, hey, I'm going to tweak this, I'm going to do something a little bit differently? And then secondly, is there anything that you can share with us in terms of the time line for naming a permanent CEO?

完美的。現在邁克爾，很快，歡迎回來，很高興今天聽到你的電話。有兩個問題問你。一，既然你回來了，我知道自從你擔任執行長以來，你在董事會中顯然一直很活躍，但是當你回來時，你是否會說，嘿，我要調整這個，我會做一些不同的事情嗎？其次，關於任命永久執行長的時間表，您有什麼可以與我們分享的嗎？

Beth, good to hear your voice. The first question, pretty simple, as Chairman of the Board, I've been very involved in the company's strategy from an oversight and couldn't agree with it more. The innovation, the focus on better product, the focus on making sure our distributors have tools to grow their incomes to attract more distributors and customers and retain them, there's going to be no change in that. It's a fabulous undertaking that's taking place here. It's, frankly, a revolution, I think, and an evolution in direct selling and in the business and giving incredible tools. So I would say from a strategic standpoint, it is -- let's continue to grow this company with tremendous product. We're building a great brand with making sure that tools are there for our distributors to attract more distributors and more customers. That's what makes the company grow.

貝絲，很高興聽到你的聲音。第一個問題，很簡單，身為董事長，我在監督中非常參與公司的策略，對此我非常同意。創新，專注於更好的產品，專注於確保我們的經銷商擁有增加收入的工具，以吸引更多的經銷商和客戶並留住他們，這些都不會改變。這是在這裡發生的一項了不起的事業。坦白說，我認為這是一場革命，是直銷和業務的演變，並提供了令人難以置信的工具。所以我想說，從策略角度來看，讓我們繼續以巨大的產品來發展這家公司。我們正在建立一個偉大的品牌，確保我們的經銷商有工具來吸引更多的經銷商和更多的客戶。這就是公司成長的原因。

As far as the time frame, none so far. We know how to transition the CEO into this company. We've proven that pretty well. We've transitioned a lot of executives into new roles, and we're going to be prepared to do that over the next period of time. And I can't define period of time right now. But I'm excited to be here. I'm excited to be with the team. John and I were talking about it this morning, we've got over 170 years of management experience in this senior team. It's pretty amazing, when you think about it. And so the bench is strong. The bench strength is even better. And I'm excited about helping everyone here grow their business. So thanks, Beth. That's probably a little bit of an obtuse answer, but the best you're going to get today.

至於時間範圍，目前還沒有。我們知道如何將執行長轉變為這家公司。我們已經很好地證明了這一點。我們已經將許多高階主管調任新角色，我們將在接下來的一段時間內做好準備。我現在無法定義時間段。但我很高興來到這裡。我很高興能和團隊在一起。約翰和我今天早上討論過這個問題，我們這個高階團隊擁有超過 170 年的管理經驗。當你想到這一點時，這真是太神奇了。所以替補席很強。板凳力量更加出色。我很高興能夠幫助這裡的每個人發展他們的業務。謝謝，貝絲。這可能是一個有點遲鈍的答案，但這是你今天能得到的最好的答案。

And our next question is from the line of Akshay Jagdale from Jefferies.

我們的下一個問題來自 Jefferies 的 Akshay Jagdale。

So I wanted to ask about profitability in the fourth quarter. How did that fare relative to your internal estimates or targets this quarter?

所以我想問一下第四季的獲利狀況。與您本季的內部估計或目標相比，情況如何？

Yes. I mean, pretty close to what you would expect. I mean, we were in high end of volume guidance, but within the range, but at the high end of the range, and a little above our EPS guidance. There was some tax rate benefit, but some of the other things that hit during the quarter were expected, right. We had gross -- little lower gross margin this quarter than last quarter that was driven by both FX, right. We talked a lot about that on the call, last quarter, where there was a favorable FX impact from the timing of rolling out of inventory that reversed in Q4. So that was about a 90 basis point impact. And there was about another 40 basis point impact from the new tariffs in Mexico, which we hope go away. We're encouraged by some signs that those tariffs go away and either with -- retaliatory tariffs that hit in Q4.

是的。我的意思是，非常接近您的期望。我的意思是，我們處於成交量指導的高端，但在範圍內，但處於範圍的高端，並且略高於我們的每股收益指引。有一些稅率優惠，但本季發生的其他一些事情是預料之中的，對吧。本季我們的毛利率比上季略低，這是由外匯推動的，對吧。我們在上個季度的電話會議上對此進行了很多討論，第四季度逆轉的庫存轉出時間對外匯產生了有利的影響。所以這大約是 90 個基點的影響。墨西哥的新關稅又產生了約 40 個基點的影響，我們希望這種影響能夠消失。我們對一些跡象感到鼓舞，這些跡象表明這些關稅將會取消，而且第四季還會有報復性關稅。

We actually are implementing a 2% surcharge to our distributors, which they are aware of this week to cover about 2/3 of that tariff going forward. And when the tariffs go away, the surcharge will. So that impacted, but we knew that was coming too and then, of course, there was a timing of a major event that last year happened in Q3 and this year happened in Q4 that also kind of skews the SG&A results compared to a year ago, but we knew about that. So I think pretty much came in close to expected.

實際上，我們正​​在向經銷商徵收 2% 的附加費，他們本週了解到這項附加費將涵蓋未來關稅的約 2/3。當關稅取消後，附加費也會隨之取消。所以這會產生影響，但我們知道這也會發生，然後，當然，去年發生在第三季度、今年發生在第四季度的重大事件的時間安排也使 SG&A 結果與一年前相比有所偏差，但我們知道這一點。所以我認為幾乎接近預期。

Got it. So given some puts and takes, but overall, in line or in the range, right. The reason I ask is it's a bit below what we were expecting from a profitability standpoint for the quarter, and that's where I was coming from, but everything you mentioned was factors that you said you had anticipated, but perhaps the magnitude was within the range, but a little bit, there's a range for a reason. Is that the best way to think about it?

知道了。因此，給出一些看跌期權和看跌期權，但總體而言，在一致或範圍內，對。我問的原因是，從本季度盈利能力的角度來看，這有點低於我們的預期，這就是我的出發點，但你提到的所有因素都是你所說的預期因素，但幅度可能在範圍內，但有一點，有一個範圍是有原因的。這是最好的思考方式嗎？

Yes, I mean, there is always puts and takes. I think when you think of currency, there is always moves a little more or a little less than you think, it's not an exact science. So yes, there could have been some movement there. I don't know exactly what you modeled, but nothing that I can think of that was a major deviation from expectations.

是的，我的意思是，總是有放有放。我認為當你想到貨幣時，總會有比你想像的多一點或少一點的變動，這不是一門精確的科學。所以是的，那裡可能發生了一些變化。我不確切知道你的模型是什麼，但我認為這與預期沒有重大偏差。

Got it. And then, the sales growth guidance changing for '19 FX and, I guess, price mix related, can you help me understand why that, I guess, didn't have an impact on profitability per se or your outlook there? So then that helps a little bit?

知道了。然後，19 FX 的銷售成長指導發生了變化，我想，與價格組合相關，你能幫我理解為什麼我想這不會對盈利能力本身或你的前景產生影響嗎？那麼這有一點幫助嗎？

Look, so about half of the change, the positive change in net sales guidance is from currency. The other half is much more mix related, which doesn't always fall to the bottom line, depending on which countries. And the currency did have an impact on the bottom line about $0.03, but not meaningful enough to change the range. It's a pretty large range. So we kept the range the same, but that would have flown through for about a $0.03 impact. Now the reason why it doesn't flow any more than $0.03 is that some of the inventories already been made, right, and it's going to flow through at today's rates, or excuse me, when it was made, and we have some hedges in place. So it's not all going to flow through.

看，大約一半的變化，淨銷售指導的積極變化來自貨幣。另一半則與混合相關，這並不總是屬於底線，具體取決於哪些國家。貨幣確實對底線產生了約 0.03 美元的影響，但不足以改變範圍。這是一個相當大的範圍。因此，我們保持範圍不變，但這會產生約 0.03 美元的影響。現在，它的流通量不超過 0.03 美元的原因是，一些庫存已經生產出來了，對吧，它將按照今天的匯率流動，或者對不起，當它生產時，我們有一些對沖地方。所以並不是所有的事情都會過去。

Got it. And then going back to China, obviously, you mentioned all the experience that you have combined. I mean, is there a precedent to what's happening there that sort of gives you a guide, your comfort level, as you think about the full year and thinking about volume points and just the growth in that business for '19? I mean, it seems kind of...

知道了。然後回到中國，顯然，您提到了您所結合的所有經驗。我的意思是，當你思考全年、銷售點以及 19 年該業務的成長時，那裡發生的事情是否有先例可以為你提供指導、讓你感到舒適？我的意思是，這似乎有點...

Yes, look, I think what we're experiencing in China is not uncommon, right. I mean, there's been times over the last few years, where the industry cancels meetings, and again, it's like I think the last time it happened, it was the National Congress, there was another one where it was a focus on the industry from some local company that did something, I don't remember exactly what it was. But again, you got to think of this in the context of China and what they're trying to accomplish, which is, of course, social stability, and so to the extent that they want to look deeper into an industry, and then it could be product related or to a direct selling business model, they take their time to do it. And I think the last time might have been 90 or 100 days. And we recovered from that, too, but during that time we didn't have meetings.

是的，你看，我認為我們在中國經歷的事情並不少見，對吧。我的意思是，在過去的幾年裡，該行業曾多次取消會議，而且，我認為上次發生這種情況是在全國代表大會上，還有另一次會議是該行業的焦點某家當地公司做了一些事情，我不記得具體是什麼了。但同樣，你必須在中國的背景下考慮這一點，以及他們想要實現的目標，當然，社會穩定，因此他們想要更深入地研究一個行業，然後它可能與產品相關或與直銷商業模式相關，他們會花時間去做。我想最後一次可能是 90 或 100 天了。我們也從這件事中恢復過來，但在那段時間我們沒有開會。

Got it. And the good news is, I guess, the -- if there was a seasonal time for this to happen, this is quite a perfect time, right, because this is the time when you have the lowest amount of sales, is that fair? And then what's...

知道了。我想，好消息是——如果有一個季節性的時間發生這種情況，那麼這是一個非常完美的時間，對吧，因為這是銷售額最低的時間，這公平嗎？然後什麼是...

Jan and Feb are the lowest months of sales for China, that's correct. So from a timing standpoint, you're right.

一月和二月是中國銷售額最低的月份，這是正確的。所以從時間的角度來看，你是對的。

And how do you see this resolving? I mean, what's the usual protocol like 90, 100 days, like before that you get a sense of, I mean, can this be extended? Or how -- when will you have a better sense of where we're headed?

您如何看待這個解決方案？我的意思是，通常的協議是怎樣的，例如 90 天、100 天，就像之前那樣，你會感覺到，我的意思是，這可以延長嗎？或者你什麼時候才能更了解我們的發展方向？

Yes. Look, again, just -- we are not a target of anything, and to be clear, right, this is just an overall industry-related initiative, and again, these types of things happen in China. That's why China growth long-term, why we believe it's positive, and it's spiky sometimes. And so that's -- this is not, like I said, not uncommon in China, and our meeting is a meeting that's founded on -- our business, excuse me, in China is a business founded on meetings. And so when you don't have meetings, they impact the business, but it's generally short term.

是的。再說一遍，我們不是任何目標，而且要明確的是，這只是一項與產業相關的整體舉措，而且，這類事情也發生在中國。這就是為什麼中國經濟長期成長，為什麼我們相信它是正面的，有時會很劇烈。所以，就像我說的，這在中國並不罕見，我們的會議是建立在——我們的業務，對不起，在中國的業務是建立在會議的基礎上的。因此，當您沒有會議時，它們會對業務產生影響，但通常是短期的。

Got it. And just one last one. With the changes going on, on the management side, I mean, how do you -- how have you communicated with the distributor community? And so what's been their reaction? Basically I'm trying to get a sense for like just is this a distraction, is this not, like how should we think about how -- what's the feedback that you've gotten from the distributors since the change happened?

知道了。還有最後一張。隨著變化的發生，在管理方面，我的意思是，你如何與經銷商社群溝通？那他們的反應是什麼呢？基本上，我試圖了解這是否會分散注意力，這不是，我們應該如何思考——自從變革發生以來，您從分銷商那裡得到的回饋是什麼？

Well, this is Michael. It might be a little selfish for me to respond to that, but the distributor reaction has been pretty good. There's -- they know me, they've known me for 16 years. There's the consistency that comes along with me, and the team is the same team that it's been. The unfortunate circumstances that put me here are behind us, and we go forward. I've been to Las Vegas and Mexico with our distributors. I'll be in Singapore next -- in a week and a half with them on the chairman's club calls, founder's circle club calls. There's not a lot of change. It's kind of back in driving the same car, just in a little higher rate of speed because things have moved up and they are getting better and they run their own businesses, as you know. And a customer walking through that door today doesn't really matter if it's -- if I'm the CEO or you're the CEO, I mean it matters to the leadership, of course, because they want direction and solidity and they want performance out of us and to service their business needs, but if I market in Nutrition Club today, the CEO of Herbalife is an unknown character to anyone so.

嗯，這是麥可。我對此做出回應可能有點自私，但經銷商的反應相當不錯。他們認識我，認識我已經 16 年了。我身上有一種一致性，而且這支球隊還是以前的那支球隊。讓我來到這裡的不幸情況已經過去，我們會繼續前進。我和我們的經銷商一起去過拉斯維加斯和墨西哥。接下來我將在新加坡—一週半後與他們一起參加主席俱樂部電話會議、創辦人圈俱樂部電話會議。沒有太多變化。這有點像回到駕駛同一輛車，只是速度稍快一些，因為事情已經進步，他們正在變得更好，而且他們經營自己的生意，正如你所知。今天走進那扇門的客戶並不重要——如果我是首席執行官還是你是首席執行官，我的意思是這對領導層來說很重要，當然，因為他們想要方向和穩定性，他們想要但如果我今天在營養俱樂部進行行銷，康寶萊的執行長對任何人來說都是一個陌生的人物。

And our next question is from the line of Doug Lane from Lane Research.

我們的下一個問題來自 Lane Research 的 Doug Lane。

Mike, while we're on the topic, where do you sit today on the timing of announcing a successor as CEO?

麥克，當我們討論這個主題時，您今天對宣布執行長繼任者的時機有何看法？

Well, Beth asked that question, and I'm going to -- Doug, I don't mean to push it aside. But the same thing is, we'll get there when we get there. And we've got, as I said before, a great team, enormous amount of experience. We've transitioned this -- a CEO very successfully into the business before, and we'll do it again. So I just don't want to set a time frame, Doug, because there is a -- I've got to work with the board. We've got to work with the management team, and we've got to make sure that the decision that we make is absolutely wholesome all the way around.

好吧，貝絲問了這個問題，我想要──道格，我並不是想把它推到一邊。但同樣的事情是，當我們到達那裡時，我們就會到達那裡。正如我之前所說，我們擁有一支優秀的團隊，擁有豐富的經驗。我們已經成功地將執行長轉變為業務人員，我們將再次這樣做。所以我只是不想設定一個時間框架，道格，因為我必須與董事會合作。我們必須與管理團隊合作，我們必須確保我們所做的決定始終是絕對有益的。

No, I understand. John, on Asia Pacific, I mean, that really was the region that beat my numbers the most. I know you mentioned India, and I think we've been talking about India for a few quarters now. And now Korea, are there any other spots within Asia, it seemed like a pretty handy beat at least as far as my numbers are concerned?

不，我明白。約翰，我的意思是，在亞太地區，這確實是擊敗我的數字最多的地區。我知道你提到了印度，我想我們已經談論印度幾個季度了。現在韓國，亞洲還有其他地方嗎，至少就我的數據而言，這似乎是一個相當方便的地方？

Yes. I mean, Vietnam was also a terrific-performing country in the quarter. Now some of that is because there is new regulations going into effect in January that I think it requires 8 hours of in-person training or something to that effect to become a distributor. So there was a lot of people signing up before that new rule went into effect. So there's a little bit of pull forward from Vietnam. But overall, those are the 2 big ones. I mean, there's a lot of good-performing countries in Asia. And look, not having Korea as a drag as it's been financially from an -- I mean that just mathematically speaking. Not having that be a drag and actually contribute to the growth helps a lot, too.

是的。我的意思是，越南在本季也是一個表現出色的國家。現在，部分原因是因為新法規將於 1 月生效，我認為需要接受 8 小時的現場培訓或類似的培訓才能成為經銷商。因此，在新規則生效之前，就有很多人報名了。因此，越南有一點推動力。但總的來說，這是兩個大問題。我的意思是，亞洲有很多表現良好的國家。你看，韓國並沒有成為經濟上的拖累——我的意思是從數學上來說。不讓這成為一個拖累並且實際上對成長做出貢獻也有很大幫助。

So it sounds like it was a good number, but not necessarily. We shouldn't be modeling it out -- carrying into 2019 here because of the -- some of these onetime issues. And what's your confidence to Korea?

所以聽起來這是一個不錯的數字，但不一定。我們不應該將其模型化——將其延續到 2019 年，因為——其中一些一次性問題。您對韓國有什麼信心？

I mean, India grew. Net sales were up 42%, local currency sales up 58%. That's not sustainable. You can't model that, right. Vietnam had volume points up almost 60%, that's not going to happen. That is event driven. India is not event driven. India has got a lot of momentum. It's got a lot of good things going, a lot of good business activity, but those numbers aren't sustainable, right.

我的意思是，印度成長了。淨銷售額成長 42%，以當地貨幣計算的銷售額成長 58%。這是不可持續的。你不能模擬它，對吧。越南的成交量增加了近 60%，但這種情況是不可能發生的。那是事件驅動的。印度不是事件驅動的。印度勢頭強勁。它有很多好事發生，有很多好的商業活動，但這些數字是不可持續的，對吧。

And Korea is growing a solid stable business as well, right.

韓國也正在發展穩健的業務，對吧。

And Korea is almost -- from a net sales standpoint, it actually grew 10.3%, and from a local currency net sales standpoint grew 12.2%, so double-digit sales growth for Korea is a meaningful contributor now. And look, it's the number ninth -- number 9 largest country in Herbalife. So it's a meaningfully sized country and with Korea turned around, it really helps the region [sales]. So I mean, there is some of what you said, which has -- which is you're not going to model in Q4 growth rates going forward, but it's not as exceptional as maybe you think, I think over time other than Vietnam, which is event driven -- over time growth rates will come down because these growth rates aren't sustainable, but I still think you're going to have strong growth rate.

從淨銷售額的角度來看，韓國幾乎成長了 10.3%，從當地貨幣淨銷售額的角度來看，成長了 12.2%，因此韓國兩位數的銷售額成長現在是一個有意義的貢獻。看，它是康寶萊第九大國家。因此，這是一個規模相當大的國家，隨著韓國的扭轉，它確實對該地區[銷售]有所幫助。所以我的意思是，你所說的一些內容，即你不會在未來的第四季度增長率中建模，但它並不像你想像的那麼特殊，我認為隨著時間的推移，除了越南之外，這是事件驅動的——隨著時間的推移，成長率將會下降，因為這些成長率是不可持續的，但我仍然認為你將會有強勁的成長率。

And you're feeling good about the sustainability here in Korea?

您對韓國的永續發展感覺良好嗎？

Yes, I mean, that's been the focus now for a few years.

是的，我的意思是，這幾年來一直是人們關注的焦點。

Okay. And then lastly, just to go back to China because it's such an important market for you, you're off to a slow start and you've got really tough comparisons in the second and third quarter, so I assume we're modeling growth in China this year, but maybe not in the double digits?

好的。最後，回到中國，因為這對你來說是一個非常重要的市場，你的起步很慢，而且你在第二季和第三季進行了非常艱難的比較，所以我認為我們正在模擬成長今年在中國，但也許不是兩位數？

We are modeling growth in China this year. I won't get into whether it's single or double digits, but it's -- we are modeling growth, again, keep your expectation for Q1 light, but we are modeling growth.

我們正在對今年中國的成長進行建模。我不會透露它是個位數還是兩位數，但我們正在對成長進行建模，再次強調，請保持對第一季經濟成長的預期，但我們正在對成長進行建模。

And our next question is from the line of Ivan Feinseth from Tigress Financial.

我們的下一個問題來自 Tigress Financial 的 Ivan Feinseth。

Congratulations on the nice year-over-year and quarter-over-quarter growth.

恭喜您取得了良好的同比和環比增長。

Thank you.

謝謝。

My first question on the launch of the new coffee drink. Can you give some idea of the level of success, has this been one of your most successful launches? And what type of feedback have you been getting? Like has it been a big driver of new distributors and new customers?

我的第一個問題是關於新咖啡飲料的推出。您能否介紹一下成功程度，這是您最成功的發布之一嗎？您收到了哪些類型的回饋？它是新經銷商和新客戶的重要推動力嗎？

Yes, we will say this. Our distributors remain very excited by this coffee launch, and indeed, although we've only launched in the U.S., other regions around the world are clamoring to kind of be next in line, and so we do have plans to take coffee to other regions, other countries. It's already just over 2% of our total U.S. sales -- rather volume and, it's exceeding our expectations nicely. It's been a good one for us.

是的，我們會這麼說。我們的經銷商仍然對這次咖啡的推出感到非常興奮，事實上，儘管我們只在美國推出，但世界各地的其他地區都在呼籲成為下一個，所以我們確實有計劃將咖啡帶到其他地區，其他國家。它已經占我們美國總銷售額的 2% 多一點——而不是數量，而且遠遠超出了我們的預期。這對我們來說是一件好事。

Okay. Very good. Now where -- for this past quarter, where were the strongest regions? And where did you see the strongest growth for new distributors and new customers?

好的。非常好。現在，在過去的這個季度中，最強勁的地區在哪裡？您認為新經銷商和新客戶的成長最強勁的地方在哪裡？

Look, I think when you're asking where is the strongest growth, let's start with volume first and then we'll talk about some distributor metrics, right. So from a volume point, I'm going to start with the regions. North America had double-digit volume growth, EMEA had double digit, APAC almost 30%, Mexico had double digit. As you know, South and Central market declined, right, driven mostly by Brazil, but that was a weak point and China was single digit. So it was really strong broad-based growth, and even within the region, it was very broad-based. APAC had a lot of countries that grew, so did EMEA. I think 75% or 80% of the countries in EMEA grew. So it's very broad-based. And most of the distributor metrics actually are underlying that growth and support it.

聽著，我認為當你問哪裡是最強勁的成長時，讓我們先從銷售開始，然後我們再討論一些經銷商指標，對吧。因此，從數量角度來看，我將從區域開始。北美銷量成長兩位數，歐洲、中東和非洲地區成長兩位數，亞太地區成長近 30%，墨西哥成長兩位數。如你所知，南部和中部市場下降了，對吧，主要是由巴西推動的，但這是一個弱點，而中國是個位數。因此，這確實是基礎廣泛的強勁增長，即使在該地區內，基礎也非常廣泛。亞太地區有許多國家/地區實現了成長，歐洲、中東和非洲地區也是如此。我認為歐洲、中東和非洲地區 75% 或 80% 的國家都實現了成長。所以它的基礎非常廣泛。大多數分銷商指標實際上是成長的基礎並為其提供支援。

And when you think of Average Active Sales Leaders, which is one of the metrics that we value internally, almost all, everybody with the exception of China, although China had active sales, they were up 31% in Q4, the growth rate declined from Q3. It was up 42%. Every other region's statistics improved sequentially. So it's very broad. In new preferred members, in the U.S., it was up 22%; in India, it was up, I think, it was 50-plus percent in preferred members, which think of those as customers. Now we don't have that data everywhere, but that is an advantage in those markets where there is segmentation. And then where there is segmentation, the markets are performing really well.

當你想到平均活躍銷售領先者時，這是我們內部重視的指標之一，幾乎所有國家，除了中國之外，儘管中國有活躍銷售，但第四季度增長了 31％，增長率從Q3。上漲了 42%。其他所有地區的統計數據都相繼改善。所以它的範圍非常廣泛。在美國，新優先會員的比例增加了 22%；在印度，我認為首選會員的比例上升了 50% 以上，這些會員將這些會員視為客戶。現在我們並沒有到處都有這些數據，但這對於那些存在細分的市場來說是一個優勢。然後，在細分的地方，市場表現得非常好。

Very good. Now as far as the new digital and technology initiatives, how are your distributors and your customers taking to that? Are you seeing that drive growth? Is it working out as planned? Is it exceeding plan?

非常好。現在，就新的數位和技術舉措而言，您的經銷商和客戶對此有何反應？您看到這會推動成長嗎？是否按計劃進行？是否超出計劃？

Yes, so let me speak specifically to HN-connect, which was the big CRM/communication technology that was launched in phases over the last year or so here in the U.S. By the end of the third quarter in 2018, we had 6,000 distributor users signed up in the program. By the end of January of this year, so a little more than a quarter later, we're now up to 24,000 distributors signed -- distributors signed up. We're going to continue growing the use of -- the sign-ups rather and our hope is that as individual distributors increasingly use the systems, it will feed the AI tool, the artificial intelligence tool that's embedded, providing us even more feedback and even more impact in the tool. We're going to continue to kind of roll it out here -- it's actually rolled out in the U.S., but continue to kind of deepen its use and its effectiveness with the use of AI tools before we then take it to other countries around the world, other markets.

是的，所以讓我專門談談 HN-connect，這是去年左右在美國分階段推出的大型 CRM/通訊技術。截至 2018 年第三季末，我們擁有 6,000 名經銷商用戶已在該計劃中註冊。到今年 1 月底，也就是一個多季度後，我們現在已經有多達 24,000 名經銷商簽約了。我們將繼續增加註冊的使用，我們希望隨著個體分銷商越來越多地使用這些系統，它將為人工智慧工具、嵌入式人工智慧工具提供支持，為我們提供更多反饋和對工具的影響更大。我們將繼續在這裡推廣它——它實際上是在美國推出的，但在我們將其推廣到世界各地的其他國家之前，我們將繼續透過使用人工智慧工具來加深它的使用和有效性。世界、其他市場。

Okay. Are you seeing any kind of demographic trends in new distributors and new customers, is it more younger people, older people, women, men? Do you have -- are you measuring this kind of data and seeing things that are surprisingly positive, surprisingly negative?

好的。您是否看到新經銷商和新客戶的人口統計趨勢，是年輕人更多、老年人更多、女性更多還是男性更多？您是否在測量此類數據並看到令人驚訝的積極或消極的事情？

With time we will learn those levels of detail. Obviously, with 24,000 people in just the fourth quarter and little beyond, we're still kind of understanding how it's used, it's going to continue growing. We'll have a better sense of who the primary new person is as we start to see this over time. Give it time.

隨著時間的推移，我們將了解這些細節。顯然，僅在第四季度就有 24,000 人，我們仍然了解它的使用方式，它將繼續成長。當我們隨著時間的推移開始看到這一點時，我們就會更好地了解誰是主要的新人。給它時間。

Very good. And on the horizon, what other areas of new products do you see or are you looking to roll out? And what kind of feedback are you getting from your distributors as far as their customers asking for help -- or products to address certain needs for example?

非常好。在不久的將來，您還看到或打算推出哪些其他領域的新產品？例如，當客戶尋求幫助或產品來滿足某些需求時，您從經銷商那裡得到了什麼樣的回饋？

Let me just stop and talk about process for a second. I'll do this quickly, okay. So we work with our distributors in developing new products. These are formal product committees, structured by country, by region, growing up to even a global look. And it's through that process that we identify -- and it's push and pull. Okay. We will identify stuff and bring it to them. They will identify stuff and bring it to us, and through that processes is how we launched products, and we don't announce products on investor calls until we tell our distributors about them so.

讓我停下來談談流程。我會盡快做這件事，好吧。因此，我們與經銷商合作開發新產品。這些是正式的產品委員會，依國家、地區劃分，逐漸發展到具有全球視野。我們正是透過這個過程來識別的——這是推和拉。好的。我們將識別物品並將其帶給他們。他們會識別東西並將其帶給我們，透過這個流程我們推出了產品，我們不會在投資者電話會議上宣布產品，直到我們告訴經銷商這些產品。

I didn't mean like specific products, I just thought maybe like general areas of products?

我的意思不是像特定產品，我只是想也許像產品的一般領域？

I mean, well, clearly, we're always going to be in the business of helping people live healthier lives, sports performance and fitness. Obviously, brain health and aging are big trending fields. We're also working, as you know, on trying to take coffee around the world. So there's lots of category opportunities and lots of places that we have our product developers, our marketing teams, and as John mentioned, the product committees in active discussion on, but we won't obviously announce specific products in this call.

我的意思是，很明顯，我們將始終致力於幫助人們過上更健康的生活、提高運動表現和健身水平。顯然，大腦健康和老化是大趨勢領域。如你所知，我們還在努力將咖啡帶到世界各地。因此，有很多類別的機會，我們在許多地方都有我們的產品開發人員、我們的行銷團隊，正如約翰所提到的，產品委員會正在積極討論，但我們不會在這次電話會議中明確宣布具體產品。

And our next question is from the line of Hale Holden from Barclays.

我們的下一個問題來自巴克萊銀行的 Hale Holden。

I just had one question. John, I think you said in the script that you had tested a volume point value change on a few products that benefited comp on the quarter by 180 basis points. I was wondering if you could give us a little bit more color on that.

我只有一個問題。約翰，我想你在腳本中說過，你已經測試了一些產品的成交量點值變化，這些產品使本季度的比較受益了 180 個基點。我想知道你能否給我們更多的資訊。

Sure, it wasn't 180 basis points for the global number, but it was 180 in a couple different markets. I think it was under 100 basis points globally, like 70% -- I mean, 70 basis points globally. So we assign a volume point value to a product, it generally has the same value everywhere in the world, and it's through those volume point accumulations are how our distributors become eligible for their earnings. And in certain markets, we are deviating from this standard global number through just the socioeconomic climate or conditions in those marketplaces, but we're doing that through tests to make sure there are no unintended consequences. So in order to be transparent with investors, any impact from those tests, we want to make sure you know for modeling purposes, but it's strictly based on testing certain theories we have in different markets.

當然，全球數字並不是 180 個基點，但在幾個不同的市場中卻是 180 個基點。我認為全球利率低於 100 個基點，大約 70%——我的意思是，全球 70 個基點。因此，我們為產品分配一個銷售點價值，它通常在世界各地具有相同的價值，並且透過這些銷售點積累，我們的分銷商才有資格獲得收入。在某些市場中，我們僅僅因為這些市場的社會經濟氣候或條件而偏離了這個標準的全球數字，但我們正在透過測試來做到這一點，以確保不會出現意想不到的後果。因此，為了對投資者保持透明，我們希望確保您了解這些測試的任何影響，以進行建模，但這嚴格基於我們在不同市場中測試的某些理論。

And next, we have a question from the line of Tim Ramey from Pivotal Research Group.

接下來，我們有來自 Pivotal Research Group 的 Tim Ramey 的問題。

So couple of things. One, Dr. A, on the huge sign up of the HN-connect, are we seeing any churn there at all? Is there -- is it too soon to see people drop, use it for a couple of months and drop? Or is there anything you can report on churn rates for the sign up?

有幾件事。第一，A 博士，在 HN-connect 的巨大註冊中，我們是否看到了任何流失？現在看到人們放棄使用它幾個月然後就放棄是不是太早了？或者您可以報​​告註冊流失率嗎？

Yes, Tim. It's way too early for us to have a handle on churn. Most of those 24,000, beyond the 6,000 that were already in the program at the end of the third quarter, most of the 24,000 literally signed up in the month of January or thereabouts -- or December and January, the last few months. So it's just way too early for us to think about churn. We're still rolling out and teaching users all of the advantages and the kind of the strengths of the program. They're still learning it. And once again, once we've had people using the programs for a while that will then improve the artificial intelligence and the impact that these tools have on their businesses. I don't expect to have churn numbers that we can even begin to look at for a number of months, if not through the rest of this year.

是的，提姆。對我們來說，現在控制客戶流失還為時過早。這24,000 人中的大多數，除了第三季末已經加入該計劃的6,000 人之外，這24,000 人中的大多數實際上是在1 月左右註冊的，或者是12 月和1 月（最後幾個月）註冊的。因此，我們現在考慮客戶流失問題還為時過早。我們仍在推出並向用戶傳授該程式的所有優點和優點。他們仍在學習。再說一次，一旦我們讓人們使用這些程式一段時間，就會改善人工智慧以及這些工具對其業務的影響。我不認為我們甚至可以在幾個月內開始研究客戶流失數字，即使不是在今年剩下的時間。

Great. And one more for John on China. There was such a discontinuity between sales growth and volume growth, and I wasn't aware of any particular price increase, which you took that would have driven that. Was that mix somehow or what explains that?

偉大的。約翰還有一篇關於中國的文章。銷售成長和銷售成長之間存在如此大的不連續性，而且我沒有意識到任何特定的價格上漲，您認為這會推動價格上漲。這種混合是某種原因還是什麼解釋的？

So it's purchasing -- yes, no, it's a great question. So it's purchasing mix, depending different in China, different purchasers get potentially different discounts. And so when you see what you think is sales growth above and beyond what would normally be a ratio between volume points and net sales, there'll be an offset in SG&A, which is why you're seeing the China member payments go up by a corresponding amount.

所以這就是購買——是的，不，這是一個很好的問題。所以這是購買組合，根據中國的不同，不同的購買者可能會獲得不同的折扣。因此，當您看到您認為的銷售成長超出了通常的銷售點與淨銷售額之間的比率時，SG&A 就會出現抵消，這就是為什麼您會看到中國會員付款增加了相應的金額。

And at this time, I'd like to turn the call back to Michael Johnson for closing remarks.

此時，我想將電話轉回給邁克爾·約翰遜，讓其致閉幕詞。

Well, thank you very much, and thanks everyone for being on the call today. Congratulations to Team Herbalife, to our distributors, employees for having a great quarter, great year, not missing a beat. It's an honor to be in this seat. It always has been. And I'm tremendously proud of what this company does. Our mission, our vision, our values, how we go into the marketplace. It's really a spectacular mission that we show up every day, helping people get healthier and the opportunity to earn a little more money. It's a spectacular company. We appreciate your support. You guys have been tremendously supportive of me, of the company, of everything that we do. We're looking forward to another great quarter and being with you, again soon. So thank you all very much.

好的，非常感謝，也感謝大家今天參加電話會議。恭喜康寶萊團隊、我們的經銷商、員工度過了一個美好的季度、美好的一年，沒有錯過任何一個節拍。能坐在這個座位上是我的榮幸。一直如此。我對這家公司所做的事情感到非常自豪。我們的使命、我們的願景、我們的價值觀、我們如何進入市場。這確實是我們每天都在履行的艱鉅使命，幫助人們變得更健康，並有機會賺更多的錢。這是一家了不起的公司。我們感謝您的支持。你們對我、公司以及我們所做的一切都給予了極大的支持。我們期待著另一個偉大的季度，並很快再次與您在一起。非常感謝大家。

Ladies and gentlemen, this does conclude the Herbalife Fourth Quarter Full Year 2018 Earnings Conference Call. We thank you for your participation. You may now disconnect.

女士們先生們，康寶萊 2018 年第四季全年財報電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。