康寶萊 (HLF) 2019 Q1 法說會逐字稿

Good afternoon, and thank you for joining the First Quarter 2019 Earnings Conference Call for Herbalife Nutrition Ltd.

下午好，感謝您參加康寶萊營養有限公司 2019 年第一季財報電話會議。

On the call today is Michael Johnson, the company's Chairman and CEO; John DeSimone, the company's co-President and Chief Strategic Officer; Dr. John Agwunobi, the company's co-President and Chief Health and Nutrition Officer; Alex Amezquita, the company's Senior Vice President of Finance, Strategy and Investor Relations; and Eric Monroe, the company's Director, Investor Relations.

今天參加電話會議的是該公司董事長兼執行長 Michael Johnson； John DeSimone，公司聯席總裁兼首席策略長；公司聯合總裁兼首席健康與營養官 John Agwunobi 博士； Alex Amezquita，公司財務、策略與投資者關係資深副總裁；以及公司投資者關係總監 Eric Monroe。

I would now like to turn the call over to Eric Monroe to read the company's safe harbor language.

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. 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 and quarterly report on Form 10-Q.

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意義範圍內的前瞻性陳述。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。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 表年度報告和 10-Q 表季度報告。

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.

我們的前瞻性陳述是基於我們目前掌握的資訊。除法律要求外，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。

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.

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。

I will now turn the call over to our Chairman and CEO, Michael Johnson.

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, and thank you for joining us on our first quarter 2019 conference call. As you saw from our press release today, we delivered net sales growth in 4 of our 6 regions, which included year-over-year growth in 7 of our top 10 countries.

大家下午好，感謝您參加我們的 2019 年第一季電話會議。正如您從我們今天的新聞稿中看到的那樣，我們在 6 個地區中的 4 個地區實現了淨銷售額增長，其中前 10 個國家/地區中的 7 個國家/地區實現了同比增長。

Our geographic diversity is an asset that helps us deliver these results, and geographic diversity is uncommon in the nutrition and direct selling industries.

我們的地理多樣性是幫助我們實現這些成果的資產，而地理多樣性在營養和直銷行業中並不常見。

While we had significantly lower-than-expected results in China in quarter 1, we reported the highest first quarter volume points in the company history. The Chinese government recently concluded a 100-day review of the health products industry. This review had an impact on both the company and our service providers' ability to host meetings in normal gatherings.

儘管我們第一季在中國的業績明顯低於預期，但我們報告了公司歷史上最高的第一季銷售點。中國政府最近結束了對保健品產業的百日審查。這次審查對公司和我們的服務提供者在正常聚會中舉辦會議的能力產生了影響。

During the last 6 months in 2018, attendance at activities hosted by service providers that were preapproved by the respective local government was approximately 650,000. This includes approximately 330,000 attendances at activities related to Nutrition Clubs. These type of meetings and activities were essentially unavailable during the 100-day review. In addition, many normal smaller nutrition club gatherings which do not require local government approvals were put on hold during this health products review.

2018年最後6個月，參加由地方政府預先批准的服務提供者舉辦的活動的人數約為65萬人次。其中包括約 33 萬人次參加與營養俱樂部相關的活動。此類會議和活動在百日審查期間基本上無法進行。此外，許多不需要地方政府批准的正常小型營養俱樂部聚會在本次保健品審查期間被擱置。

The good news in the short term is that the normal club activities have begun, and the local government approvals for meetings in the month of May are ramping up since the 100-day review was concluded. Also the good news in the long term is that together with our service providers in China, we will take this opportunity to implement strategic initiatives we believe will result in our business being less dependent on meetings. Without the impact from China, we would not have reduced our guidance for the full year, and we are pleased with the positive momentum of our business globally.

短期的好消息是，俱樂部的正常活動已經開始，百日審查結束後，地方政府對5月會議的批准正在增加。從長遠來看，好消息是，我們將與我們在中國的服務提供者一起，利用這個機會實施戰略舉措，我們相信這將減少我們的業務對會議的依賴。如果沒有中國的影響，我們不會降低全年指引，我們對全球業務的積極勢頭感到高興。

Turning now to the U.S. where we continue to see strong results with net sales increasing 11% compared to the first quarter of 2018. This is the fifth straight quarter of year-over-year sales growth. The resilience in growth of the U.S. is reflective of our strong consumer-based business.

現在轉向美國，我們繼續看到強勁的業績，與 2018 年第一季相比，淨銷售額成長了 11%。這是銷售額連續第五個季度年增。美國經濟成長的韌性反映了我們強大的消費者業務。

We are also encouraged by the overall broad-based strength of our business, which is driven by an opportunity worldwide to provide better nutrition in people's lives. We have a global team of dedicated distributors and employees whose enthusiasm, passion and commitment to Herbalife Nutrition has never been greater. All of us are working every day to propel the company toward the future and continue to enhance value.

我們也對我們業務的整體廣泛實力感到鼓舞，這是由全球為人們的生活提供更好營養的機會所推動的。我們擁有一支由敬業的經銷商和員工組成的全球團隊，他們對康寶萊營養品的熱情、熱情和承諾從未如此強烈。我們所有人每天都在努力推動公司走向未來，不斷提升價值。

Now let me hand this over to Alex, John and John, who will talk in more detail about our results.

現在讓我把這個交給亞歷克斯、約翰和約翰，他們將更詳細地談論我們的結果。

As Michael highlighted, we experienced net sales growth in 4 of our 6 regions and 7 of our top 10 countries. However, first quarter net sales of $1.2 billion was relatively flat on a reported basis compared to the first quarter in 2018. Excluding China, net sales increased 6% compared to the prior year period.

正如 Michael 所強調的那樣，我們在 6 個地區中的 4 個和排名前 10 的國家中的 7 個國家實現了淨銷售額成長。然而，根據報告，第一季淨銷售額為 12 億美元，與 2018 年第一季相比相對持平。不包括中國在內，淨銷售額較上年同期成長 6%。

Volume points for the first quarter 2019 were approximately 1.5 billion, which represented an increase of approximately 6.1% compared to the first quarter of 2018. This is the largest first quarter volume point result in the company's history and represents the fourth consecutive quarterly volume point record for the respective quarter.

2019年第一季交易量約15億，較2018年第一季成長約6.1%。這是該公司歷史上最大的第一季銷售點結果，也是該季度連續第四個季度銷售點記錄。

We reported a net income of approximately $96.3 million or $0.66 per diluted share. Adjusted earnings per adjusted diluted share were also $0.66. Note that our reported and adjusted results include expenses related to the China Growth and Impact Investment Program of approximately $0.7 million that were excluded from our guidance.

我們報告的淨利潤約為 9,630 萬美元，即稀釋後每股收益 0.66 美元。調整後攤薄每股收益也為 0.66 美元。請注意，我們報告和調整後的結果包括與中國增長和影響力投資計劃相關的約 70 萬美元的費用，這些費用未包括在我們的指導中。

The impact of currency fluctuations represented a year-over-year headwind of approximately $0.11 on results for the first quarter, $0.03 more than what we assumed in our guidance primarily related to changes in country mix of earnings.

貨幣波動的影響對第一季業績造成了約 0.11 美元的同比逆風，比我們在指引中假設的主要與收入國家組合變化相關的預期多了 0.03 美元。

Reported gross margin for the first quarter of 79.4% decreased by approximately 20 basis points compared to the prior year period. The decrease was primarily driven by the impact of foreign currency fluctuations and changes in country mix, which were partially offset by the favorable impact of retail price increases, lower inventory write-downs and favorable cost changes related to self-manufacturing and strategic sourcing.

第一季毛利率為 79.4%，較去年同期下降約 20 個基點。這一下降主要是受到外匯波動和國家結構變化的影響，但零售價格上漲、庫存減記減少以及與自我製造和戰略採購相關的有利成本變化的有利影響部分抵消了這一影響。

First quarter 2019 reported and adjusted SG&A as a percentage of net sales were 37.1% and 35.9%, respectively. Excluding China member payments, adjusted SG&A as a percentage of net sales was 29.4%, approximately 30 basis points higher than the first quarter 2018 primarily driven by our investments in technology and particularly a shift to cloud-based infrastructure.

2019 年第一季報告和調整後的 SG&A 佔淨銷售額的百分比分別為 37.1% 和 35.9%。不包括中國會員付款，調整後的銷售及管理費用佔淨銷售額的百分比為29.4%，比2018 年第一季高出約30 個基點，這主要是由於我們對技術的投資，特別是向基於雲端的基礎設施的轉變。

Our first quarter reported effective tax rate was approximately 28.9%, and our adjusted effective tax rate was 26.2%, which was lower than our expectations primarily due to the impact of discrete items, including approximately $2.4 million of excess tax benefits from the exercise of equity grants.

我們第一季報告的有效稅率約為 28.9%，調整後的有效稅率為 26.2%，低於我們的預期，主要是由於離散項目的影響，包括來自行使股權的約 240 萬美元的超額稅收優惠補助金。

As Michael mentioned earlier, our first quarter results in China fell below our expectations. The Chinese government's 100-day review of our health products had an impact on our business, namely, we and our service providers were unable to hold our standard business meetings and our nutrition club operators faced increased scrutiny that created an overall hesitation in their activities. The 100-day review period ending on or about April 18, and we expect to ramp up meetings in May, as Michael already stated. Without the impact from China, we would not have taken down our guidance for the full year.

正如邁克爾之前提到的，我們在中國的第一季業績低於我們的預期。中國政府對我們的保健產品進行百日審查對我們的業務產生了影響，即我們和我們的服務提供者無法舉行標準的業務會議，我們的營養俱樂部運營商面臨更嚴格的審查，導致他們的活動整體猶豫不決。100 天的審查期將於 4 月 18 日左右結束，正如邁克爾已經說過的那樣，我們預計會在 5 月增加會議次數。如果沒有中國的影響，我們就不會下調全年指引。

Fortunately, we have a growth and investment fund in China, which we'll utilize to advertise and promote our business in China over the next few months to help our distributors recover from the impact of the 100-day review. John will speak more about the strategic plans in China shortly.

幸運的是，我們在中國有一個成長和投資基金，我們將在接下來的幾個月裡利用它來宣傳和推廣我們在中國的業務，以幫助我們的分銷商從百日審查的影響中恢復過來。約翰很快將更多地談論在中國的戰略計劃。

Now let me share the updated guidance. Worldwide volume point guidance for 2019 has been updated to a range of 0.5% to 6.5% growth. Net sales guidance for the full year has also been updated, and we are now expecting a range of down 1% to up 5%. This range is reflective of the volume point adjustments and country mix as well as a 210 basis point impact from foreign currency fluctuation, which is 40 basis points unfavorable compared to prior guidance.

現在讓我分享更新後的指南。2019 年全球銷售點指引已更新為 0.5% 至 6.5% 的成長範圍。全年淨銷售額指引也已更新，我們目前預計將下降 1% 至成長 5% 的範圍。這個範圍反映了交易量點調整和國家組合以及外幣波動 210 個基點的影響，與先前的指導相比不利 40 個基點。

Full year reported diluted EPS is now estimated to be in a range of $2.19 to $2.64, and adjusted diluted EPS guidance is expected to be in a range of $2.50 to $2.95.

目前，全年報告稀釋每股收益預計在 2.19 美元至 2.64 美元之間，調整後稀釋每股收益指引預計在 2.50 美元至 2.95 美元之間。

Full year reported and adjusted diluted EPS includes a currency headwind of approximately $0.26, a $0.04 increase from the $0.22 included in our previous guidance, excluding the impact of Venezuela. Our effective tax rate guidance remains unchanged at 29% to 33% on a reported basis and 27% to 31% on an adjusted basis.

全年報告和調整後的攤薄每股收益包括約 0.26 美元的貨幣逆風，比我們之前指導中的 0.22 美元增加了 0.04 美元，不包括委內瑞拉的影響。我們的有效稅率指引保持不變，在報告基礎上為 29% 至 33%，在調整基礎上為 27% 至 31%。

For the second quarter 2019, we estimate volume points to be in a range of down 1% to up 5%. Net sales are expected to be in the range of down 3.5% to growth of 2.5%, which includes an approximate 340 basis points currency headwind versus the prior year.

對於 2019 年第二季度，我們預計成交量將在下降 1% 至成長 5% 的範圍內。淨銷售額預計將下降 3.5% 至成長 2.5%，其中包括與去年相比約 340 個基點的匯率逆風。

Second quarter reported diluted EPS is estimated to be in a range of $0.53 to $0.68 and adjusted diluted EPS to be in the range of $0.65 to $0.80.

第二季稀釋後每股盈餘預計在 0.53 美元至 0.68 美元之間，調整後稀釋後每股盈餘在 0.65 美元至 0.80 美元之間。

Reported and adjusted diluted EPS include a projected currency headwind of $0.08 compared to the second quarter of 2018, excluding the impact of Venezuela. Our effective tax rate guidance for the second quarter is 30% to 34%, while the adjusted effective tax rate is expected to be in a range of 27% to 31%.

報告和調整後的稀釋每股收益包括與 2018 年第二季度相比預計的 0.08 美元的貨幣逆風，不包括委內瑞拉的影響。我們對第二季的有效稅率指引為30%至34%，而調整後的有效稅率預計在27%至31%範圍內。

I will now turn the call over to John DeSimone.

我現在將把電話轉給約翰·德西蒙。

Thank you, Alex. Today, I'll be sharing an update on our regional performance. The strength of our U.S. business continued in the first quarter with volume increasing by 9% compared to the first quarter of 2018 and net sales increasing by 11%. This is the fifth straight quarter with year-over-year volume point growth and the sixth straight quarter with accelerating volume point trends on a 2-year stack basis. The volume point value test we began last year on a few products benefited the comparison in the quarter by approximately 160 basis points.

謝謝你，亞歷克斯。今天，我將分享我們區域業績的最新情況。我們的美國業務在第一季持續保持強勁勢頭，銷量較 2018 年第一季增長 9%，淨銷售額增長 11%。這是連續第五個季度銷售點年增，也是連續第六個季度銷售點趨勢在兩年累積基礎上加速。我們去年開始對一些產品進行的成交量點值測試使本季的比較受益了大約 160 個基點。

I think there's something special about the strength of Herbalife that's illustrated by the ability of the U.S. market to not only overcome the challenges of the past few years but to build it better and thrive. The thing that's special about Herbalife is that our distributors and the company work together to always build it better. We have a collective purpose. Our products saw the real need for the consumer, and together, we can overcome almost anything. While the comparisons are obviously getting harder, the foundation of the business in the U.S. is strong, and distributor movement up the marketing plan is equally strong.

我認為康寶萊的實力有一些特別之處，美國市場不僅有能力克服過去幾年的挑戰，而且有能力將其建立得更好並蓬勃發展。康寶萊的特別之處在於我們的經銷商和公司共同努力，始終將其建立得更好。我們有一個共同的目標。我們的產品看到了消費者的真正需求，齊心協力，我們幾乎可以克服任何困難。雖然比較顯然變得越來越困難，但美國業務的基礎很強大，經銷商在行銷計畫上的進步也同樣強勁。

Turning to Mexico. Volume points grew by 1%. This is a little bit below our expectations. One of the reasons was the implementation of a 2% price surcharge we instituted during the quarter to mitigate the impact of tariffs enacted by the Mexican government in 2018 on products imported from the United States, which are applicable to a significant portion of our product line. This surcharge actually results in a 4% out-of-pocket increase for our distributors and has impacted their business slightly. Importantly, there's reason to believe that these tariffs could partially or fully be eliminated in the near future as new trade agreements are worked between the U.S. and Mexico.

轉向墨西哥。成交量點增加了 1%。這有點低於我們的預期。原因之一是我們在本季度實施了 2% 的價格附加費，以減輕墨西哥政府 2018 年對從美國進口的產品徵收關稅的影響，這些關稅適用於我們產品線的很大一部分。這項附加費實際上導致我們經銷商的自付費用增加了 4%，並對他們的業務產生了輕微影響。重要的是，有理由相信，隨著美國和墨西哥之間達成新的貿易協定，這些關稅可能在不久的將來部分或全部取消。

The Asia Pacific region reported a 29% year-over-year increase in volume points, which was the fifth quarter in a row, the region has set a new all-time record high volume point performance.

亞太地區成交量年增 29%，這是該地區連續第五個季度創下了成交量表現的歷史新高。

In a moment, Dr. Agwunobi will provide additional details on India, one of the region's growth drivers. But I want to highlight a few other markets we're excited about.

稍後，阿格武諾比博士將提供有關該地區增長動力之一的印度的更多詳細資訊。但我想強調一些我們感到興奮的其他市場。

Indonesia's volume was up 26% in the quarter and has continued to strengthen by focusing on a customer-based business and daily consumption through Nutrition Clubs and training activities supported by increased product access points in this expansive market.

印尼的銷量在本季度增長了 26%，透過營養俱樂部和培訓活動（透過在這個廣闊的市場中增加產品存取點支援）專注於以客戶為基礎的業務和日常消費，銷售量繼續增強。

Vietnam continues to show strength as volume grew 54% year-over-year in Q1. As I mentioned on previous calls, Vietnam's sales in the quarter were benefited by distributor activities in advance of new regulations that were partially implemented in Q1 and additional regulations expected to be implemented in Q2.

越南持續展現實力，第一季銷量較去年同期成長 54%。正如我在之前的電話會議中提到的，越南本季的銷售額受益於經銷商在第一季度部分實施的新法規和預計第二季度實施的其他法規之前的活動。

And finally, in South Korea, we had growth in the market for the second straight quarter.

最後，在韓國，我們的市場連續第二季實現成長。

Turning to EMEA. The region grew volume points by 11% in the first quarter, taking the number of consecutive quarters with growth in EMEA up to 36. The volume point increases in the quarter were very broad-based, reflecting, we believe, efforts to enhance the quality and activity of sales leaders including member training, brand awareness and product line expansion as well as enhanced technology tools for ordering, business performance and customer retailing. The growth in the period was led by Spain, South Africa, Turkey and the United Kingdom.

轉向歐洲、中東和非洲地區。該地區第一季銷量成長了 11%，使 EMEA 連續成長的季度數量達到 36 個。本季銷售點的成長非常廣泛，我們相信，這反映出為提高銷售領導者的品質和活動所做的努力，包括會員培訓、品牌知名度和產品線擴展，以及用於訂購、業務績效和銷售的增強技術工具。客戶零售。西班牙、南非、土耳其和英國引領了這段時期的成長。

Finally, circling back to China, in the near term, we are encouraged by the new meeting approvals that are coming in. Additionally, we are implementing initiatives to reduce our reliance on meetings in the long term. Namely, we are improving the economics to service providers with a focus on enhancing the profitability and activity of Nutrition Clubs to allow for smaller footprint clubs. We are also working on a new technology platform that we hope to launch in Q3. We have narrowed our partner choice in China to lead the digital transformation to either Alibaba or Tencent.

最後，回到中國，在短期內，我們對即將獲得的新會議批准感到鼓舞。此外，我們正在實施舉措，以減少對會議的長期依賴。也就是說，我們正在改善服務提供者的經濟效益，重點是提高營養俱樂部的獲利能力和活動，以允許規模較小的俱樂部成立。我們也致力於開發一個新技術平台，希望在第三季推出。我們將在中國的合作夥伴選擇範圍縮小到阿里巴巴或騰訊來引領數位轉型。

I will now turn the call over to Dr. Agwunobi to provide an update on India and to share some strategic highlights in the quarter.

我現在將把電話轉給阿格武諾比博士，介紹印度的最新情況並分享本季的一些戰略亮點。

Thank you, John. 2018 was an amazing year, and as you've just heard, we're off to a strong start in 2019. I'd like to take a moment to provide an update on one of our growth markets, share some of our innovation related to our product strategy and provide an update on our marketing plan achievements.

謝謝你，約翰。2018 年是了不起的一年，正如您剛剛聽說的，我們在 2019 年有了一個很好的開始。我想花點時間介紹一下我們的一個成長市場的最新情況，分享一些與我們的產品策略相關的創新，並介紹一下我們的行銷計劃成果的最新情況。

Over the past few years, we've demonstrated exceptional growth in India. Since Q1 of 2016, India's volume point increased at a 3-year compounded annual growth rate of approximately 35%. And compared to Q1 of 2018, India's volume grew over 47% year-over-year.

過去幾年，我們在印度取得了非凡的成長。自2016年第一季以來，印度的銷售點以3年複合成長率約35%的速度成長。與 2018 年第一季相比，印度的銷量年增超過 47%。

There are several factors that we believe are contributing to this performance.

我們認為有幾個因素促成了這一業績。

First, we continue to broaden our presence in the market, adding product access points including pickup locations in additional cities. The number of access points in India has increased to 742 in the first quarter of 2019 compared to 454 in Q1 of 2018. This includes third party drop-off points, which have increased over 75% in only 1 year to 651 in Q1 of '19 versus 368 in Q1 of '18. This increase in our product access ensures our products quickly reach the hands of our distributors and improve customer satisfaction. We continue our focus to expand access points in Tier 2 and in Tier 3 cities to improve delivery time lines.

首先，我們持續擴大市場影響力，增加產品接入點，包括在更多城市設立取貨點。印度的接入點數量從 2018 年第一季的 454 個增加到 2019 年第一季的 742 個。其中包括第三方下車點，僅一年內就增加了 75% 以上，從 19 年第一季的 651 個增加到 18 年第一季的 368 個。產品准入的增加可確保我們的產品快速到達經銷商並提高客戶滿意度。我們持續致力於擴大二線和三線城市的接入點，以縮短交貨時間。

The underlying distributor metrics we see in the market give us confidence India will continue to see future growth. The activity rate of Sales Leaders in Q1 of 2019 increased approximately 7% compared to the prior year, up to approximately 63%. And our most recent annual supervisor retention rate was 61.7%, a record high. And it improved from 54.7% in the prior year. We have also continued to see steady growth in our preferred customer segment in India. With over 52,000 new preferred customers in Q1, a record high and a 29% increase compared to the prior year.

我們在市場上看到的基本分銷商指標讓我們有信心印度將繼續看到未來的成長。2019年第一季銷售領袖活躍率較上年成長約7%，達到約63%。我們最近的年度主管保留率為 61.7%，創歷史新高。較上年的 54.7% 有所提高。我們也看到印度的首選客戶群持續穩定成長。第一季新增優先客戶超過 52,000 名，創歷史新高，較去年同期成長 29%。

Additionally, we continue to expand our product line and have demonstrated success in localized products and flavors in India. Last year, we discussed the Formula 1 kulfi flavor, similar in taste to a popular Indian frozen dairy dessert that exceeded launch sales expectations. We are pleased to see this product continue in popularity and has now become our #2 selling SKU in India, satisfying the local flavor palate of the Indian consumer.

此外，我們繼續擴大我們的產品線，並在印度本地化產品和口味方面取得了成功。去年，我們討論了一級方程式 kulfi 口味，其味道類似於流行的印度冷凍乳製品甜點，超出了上市銷售預期。我們很高興看到該產品繼續受歡迎，現在已成為我們在印度排名第二的銷售 SKU，滿足印度消費者的當地風味口味。

In the first quarter of this year, we launched a probiotic sachet in the market. This product can be conveniently added to a shake, aloe or a tea, and it promotes the growth of beneficial bacteria in the intestines for those who want to maintain a healthy digestive system. A healthier microbiome. It is specifically formulated with a shelf-stable probiotic strain that can survive the acidic gastric passage to germinate in the intestines, not in the stomach like so many other common probiotics.

今年第一季度，我們在市場上推出了益生菌袋。該產品可以方便地添加到奶昔、蘆薈或茶中，對於想要保持健康消化系統的人來說，它可以促進腸道內有益細菌的生長。更健康的微生物組。它採用耐儲存的益生菌菌株專門配製而成，可以在酸性胃道中存活並在腸道中發芽，而不是像許多其他常見益生菌那樣在胃中發芽。

Outside of India, during the first quarter, we launched some exciting new products around the world. In the U.S., we introduced the select line extension of our top-selling Formula 1 meal replacement shake as well as the first ever Select version of our protein drink mix. These new offerings help us attract new customers who seek clear labels and ingredients and are more natural and easy to recognize.

在印度以外的地區，第一季度，我們在世界各地推出了一些令人興奮的新產品。在美國，我們推出了最暢銷的一級方程式代餐奶昔的精選系列延伸產品，以及首款精選版本的蛋白質混合飲料。這些新產品幫助我們吸引新客戶，他們尋求清晰的標籤和成分，並且更天然、更容易識別。

The Select product addresses these consumers' desires with benefits such as alternate plant-based proteins with pea, quinoa and rice, non-GM and vegetarian ingredients, no artificial flavors, sweeteners or added colors, and they're nondairy and gluten-free. Additionally, our data shows these consumers spend more money with us. This is the second Formula 1 product in the Select platform following the Q3 2018 launch in Australia and New Zealand and in addition to the PRO 20 Select which we launched in EMEA.

Select 產品滿足了這些消費者的需求，其優點包括用豌豆、藜麥和大米替代植物蛋白、非基因改造和素食成分、不含人工香料、甜味劑或添加色素，而且不含乳製品和麩質。此外，我們的數據顯示這些消費者在我們這裡花了更多的錢。這是繼 2018 年第三季在澳洲和紐西蘭推出以及我們在歐洲、中東和非洲推出的 PRO 20 Select 後，Select 平台上的第二款一級方程式產品。

Before the Q&A, I'd like to highlight that we continue to see incredible distributor engagement. On top of the tremendous marketing plan performance in 2018, which included 2 new distributorships qualifying for our prestigious Chairman's Club, we continued this progression with 2 new Chairman's Club qualifiers already in 2019. It's remarkable that we've had 4 Chairman's Club qualifiers in less than 1 year, which is 4x the average of the prior 3 years.

在問答之前，我想強調的是，我們繼續看到令人難以置信的經銷商參與。除了 2018 年出色的行銷計劃績效（其中包括 2 個新的經銷權獲得我們著名的主席俱樂部資格）之外，我們還在 2019 年繼續取得了 2 個新的主席俱樂部資格。值得注意的是，我們在不到一年的時間內舉辦了 4 場主席俱樂部預選賽，是前 3 年平均的 4 倍。

We are grateful for the hard work and the relentless passion our distributors and employees bring each and every day to make Herbalife Nutrition the premier nutrition company in the world. I'm proud of what we've done together, and I'm confident in our bright future.

我們感謝我們的經銷商和員工每天的辛勤工作和不懈熱情，使康寶萊營養成為世界上首屈一指的營養公司。我為我們共同所做的一切感到自豪，我對我們光明的未來充滿信心。

Now, this concludes our prepared remarks. Operator, please open the lines for questions.

現在，我們準備好的發言就到此結束。接線員，請打開提問線。

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

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

John, am I right in understanding that Nutrition Clubs were essentially dark in China in the first quarter or during the 100-day period?

約翰，我對營養俱樂部在第一季或百天內在中國基本上處於黑暗狀態的理解是否正確？

I mean, that's a good way to think about it. I wouldn't say exactly dark, but a lot of their normal activities were, I'll say, prohibited. But prohibited means it wasn't legally prohibited but it was recommended that gatherings just don't take place during this review. And those gatherings aren't just meetings that the government has to preapprove. It was meetings of all sizes. And again, this was not a direct selling review. It was a health products review. And our Nutrition Clubs aren't even direct sellers, right, but they are [smacking] down in the middle of the health products. And so they actually had a number of government visits to clubs, a couple of hundred, I believe, just early on in this and it was -- nothing major that came out of it, just that the kind of result was a hesitation from clubs to do anything.

我的意思是，這是一個很好的思考方式。我不會說完全黑暗，但我會說，他們的許多正常活動都是被禁止的。但禁止意味著法律上沒有禁止，但建議在本次審查期間不要舉行聚會。這些聚會不僅僅是政府必須預先批准的會議。這是各種規模的會議。再說一遍，這不是直銷評論。這是一篇保健品評論。我們的營養俱樂部甚至不是直銷商，對吧，但他們在健康產品的中間[猛擊]。因此，他們實際上對俱樂部進行了多次政府訪問，我相信，就在早期，這並沒有產生什麼重大結果，只是這種結果是俱樂部的猶豫做任何事。

Got it. And as you probably saw, Nu Skin had pretty good growth in customers but really based on their digital efforts in the 1Q. Would you -- you mentioned new digital tools becoming available in the 3Q in China. Would you say that you're -- I don't want to say late to the party, but you're behind the curve a little bit there and have some catching up to do?

知道了。正如您可能看到的那樣，例如新的客戶成長相當不錯，但這實際上是基於他們在第一季的數位化努力。您提到第三季中國將推出新的數位工具嗎？你會說你——我不想說遲到了，但你有點落後於潮流，需要迎頭趕上？

Well, yes. I guess I'd first say we have a focus on clubs in China, as you know. And there's a huge amount of benefit that comes from clubs. For this particular episode, that wasn't the case. But in general, clubs are a big asset in China.

嗯，是。我想我首先要說的是，正如你所知，我們的重點是中國的俱樂部。俱樂部帶來了巨大的好處。對於這一集來說，情況並非如此。但總的來說，俱樂部在中國是一筆巨大的資產。

Having said that, balance is needed. Our technology platform was entirely based on selling to service providers and to sales reps and not a platform of which their customers can order from us. And that's the partnership we're dealing with, either Alibaba or Tencent. We're in negotiations right now.

話雖如此，需要平衡。我們的技術平台完全基於向服務提供者和銷售代表銷售，而不是他們的客戶可以向我們訂購的平台。這就是我們正在處理的合作夥伴，要嘛是阿里巴巴，要嘛是騰訊。我們現在正在談判中。

So that is something that we're now -- keeping in mind, we don't have the benefit of skin care to kind of move away from health products during this episode like Nu Skin did. But other than that, there was definitely some learnings out of this, and I think our key takeaway was we need to create balance and we're not as reliant on meetings and gatherings in the future.

所以這就是我們現在要做的事情——請記住，我們沒有像如新一樣，在這段時期從皮膚護理的好處中擺脫保健品。但除此之外，肯定從中學到了一些東西，我認為我們的關鍵要點是我們需要創造平衡，並且我們未來不再依賴會議和聚會。

And just finally, is there anything odd that I need to think about for SG&A, ex China member payments? I guess you mentioned some spending there, but also just what was the impact of the slowdown in the China business on member payments? Was it commensurate? Was it kind of ratable?

最後，對於 SG&A（前中國會員付款），我需要考慮什麼奇怪的事情嗎？我想您提到了那裡的一些支出，但中國業務放緩對會員付款有何影響？是否相稱？這是值得評價的嗎？

Tim, thanks for the question. So it was ratable. So the [SP] payments that we make as a percentage of the sales in China, that ratio didn't materially change. So you'll see it come down pretty significantly when you go through the Q, and you can see the numbers there. As a percentage, it's about the same.

提姆，謝謝你的提問。所以它是值得評價的。因此，我們支付的[SP]付款佔中國銷售額的百分比，且沒有發生重大變化。因此，當您查看 Q 時，您會發現它顯著下降，並且您可以看到那裡的數字。從百分比來看，是差不多的。

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。

So trying to understand the numbers here. The first quarter was largely in the middle of your range, volume points and EPS. So the issue is not so much the first quarter, it's that you entered the second quarter with very little momentum in China. So you're allowing yourself some time period to recover that momentum coming out of the 100-day review. So I guess my question is, is it just a second quarter thing or do you think it will take the remainder of the year to get China reramped?

所以試著理解這裡的數字。第一季基本上處於您的範圍、交易量點和每股收益的中間。因此，問題不在於第一季度，而在於進入第二季度時，中國市場的勢頭非常小。因此，您需要給自己一段時間來恢復 100 天審核後的動力。所以我想我的問題是，這只是第二季的事情還是你認為需要今年剩餘時間才能讓中國重新崛起？

Doug, thanks for the question. So we do think that we'll return to growth in China in 2019. The timing of that is a little uncertain, right? So we're seeing some positive momentum from the government in improving meetings in that market, but there's still uncertainty towards how that will translate into getting back the business as normal. So we're still in a little bit of a wait and see to see how fast it comes back, but we do anticipate at some point to be back in growth mode in 2019.

道格，謝謝你的提問。因此，我們確實認為 2019 年我們在中國將恢復成長。時間有點不確定，對吧？因此，我們看到政府在改善該市場的會議方面採取了一些積極的勢頭，但是這將如何轉化為恢復正常業務仍存在不確定性。因此，我們仍在等待，看看它恢復的速度有多快，但我們確實預計在 2019 年的某個時候會恢復成長模式。

Right. And you're coming at it from a perspective of literally 2 weeks since the review period ended. Is that right?

正確的。你是從審查期結束後兩週的角度來看這個問題的。是對的嗎？

Exactly. Exactly.

確切地。確切地。

So very early days. Okay. And just one last thing. Can you give us an update on...

所以很早的時候。好的。最後一件事。您能給我們提供最新情況嗎...

Sorry, if I can just add. It's -- while it's even -- you might say it's 2 weeks since that ended, the meetings all start in May. So it's actually 1 day since any meetings have taken place, right, because once the 100-day period ended, then we start applying for permits. And those permits started allowing for meetings to start yesterday.

抱歉，如果我可以添加的話。雖然是均勻的，但你可能會說距離那次會議結束已經過去了兩週，但會議都在五月開始。所以距離舉行任何會議實際上已經過去了 1 天，對吧，因為一旦 100 天的期限結束，我們就開始申請許可證。這些許可證昨天開始允許會議開始。

Okay. So there's even a lag from that. So, okay, we really are in the early days of it. Okay. I get it. All right. Just lastly, can you give us an update on the CEO status? Is there any kind of timing goals? How far down the path have you gone? Or Michael, have you moved back in and this will be it for a while?

好的。所以甚至還有一個滯後。所以，好吧，我們確實處於早期階段。好的。我得到它。好的。最後，您能為我們介紹一下執行長的最新情況嗎？有什麼時間目標嗎？你已經在這條路上走了多遠？或者邁克爾，你搬回去了嗎，就這樣住一段時間吧？

I'm fully moved back in, much to probably distress and the happiness of some of my team members here, but -- no, we don't have an update on that yet. We've got a lot of work to do. As you saw from China, we are completely focused on building the company. I'm focused on succession. I'm working with John and John here very, very closely to make sure that we've got a really strong team built for the future here. So we'll give you an update at the right time on that, Doug. Thanks for the question.

我已經完全搬回來了，這可能會讓我的一些團隊成員感到痛苦和高興，但——不，我們還沒有這方面的最新消息。我們還有很多工作要做。正如您在中國看到的那樣，我們完全專注於建立公司。我專注於繼承。我正在與約翰和約翰在這裡非常非常密切地合作，以確保我們在這裡擁有一支為未來打造的真正強大的團隊。因此，我們將在適當的時候向您提供最新消息，道格。謝謝你的提問。

And our next question is from the line of Beth Kite from Citi.

我們的下一個問題來自花旗集團的貝絲‧凱特 (Beth Kite)。

So I was wondering if we could begin with talking about a little bit of what's been spoken to so far in the Q&A but around local currency sales growth for the full year and then so much as the range expanding from 4 points to 6. Is that totally a function of China and just giving yourself more flexibility there? Or are there any other markets that drove that?

所以我想知道我們是否可以先討論一下到目前為止在問答中談到的一些內容，但圍繞全年的當地貨幣銷售增長，然後將範圍從 4 點擴大到 6 點。是這樣嗎？完全是中國的職能，只是給自己更大的彈性？或者有其他市場推動了這個趨勢嗎？

So both the update to guidance and widening of the range is predominantly because of China. There we don't -- had it not been for the impact of the 100-day campaign, it's unlikely we would have updated guidance -- we certainly wouldn't have updated guidance down and the range would probably have been more at the historical levels.

因此，指南的更新和範圍的擴大主要是因為中國。我們沒有——如果沒有 100 天活動的影響，我們不太可能更新指導——我們當然不會下調指導，範圍可能會更接近歷史水平。水平。

Got it. So I could take then -- or could you speak to, I guess I should say, do you still feel confident now that we're 2 quarters in with South Korea, posting growth year-over-year 2 quarters in a row? Are you more worried about Brazil? It seems like that had a pretty bad quarter.

知道了。那麼我可以這麼說——或者我想我應該說，你是否仍然對我們與韓國的比賽已經兩個季度、連續兩個季度實現同比增長感到有信心？您更擔心巴西嗎？看起來這個季度的情況相當糟糕。

And then in the U.S., can you speak to the growth there? And was it -- it looks like Preferred Member growth was good. Was it Preferred Member growth? Was it the Iced Coffee launch? Was it a few things in total? Could you just talk us about those 3 markets, please?

那麼在美國，您能談談那裡的成長嗎？看起來首選會員的成長勢頭良好。是首選會員的成長嗎？是冰咖啡的推出嗎？總共是幾件事嗎？您能給我們談談這三個市場嗎？

Yes. So Korea was [growth], right? It's not only grown for the executive straight quarter, it's accelerated double digit. We just had some executives down in Korea meeting with distributors over the weekend, working on initiatives to enhance the growth. And so I think it hit the levels which it can now build and increase sustainable businesses over the long term. Not that it won't be spiky. Growth usually is in this business. But we're quite pleased. And actually, another shout-out to all of Northern Asia for us because Taiwan also grew in the quarter. Brazil, Brazil has been a challenge for a long time. I think the key opportunity for us is segmentation, which launches, I believe, later this month.

是的。所以韓國是[成長]，對嗎？它不僅在執行季度連續成長，而且加速了兩位數。週末，我們剛在韓國派了一些高階主管與經銷商會面，制定促進成長的措施。因此，我認為它已經達到了現在可以建立和增加長期可持續業務的水平。並不是說它不會尖銳。成長通常發生在這個行業。但我們很高興。事實上，我們再次向整個北亞大聲疾呼，因為台灣在本季也實現了成長。巴西，巴西長期以來一直是個挑戰。我認為我們的關鍵機會是細分，我相信它將在本月晚些時候啟動。

Yes, Extravaganza.

是的，盛宴。

Extravaganza this month launches, segmentation in Brazil. So Brazil was down but it was down like we expected it to be down. No surprise in Brazil.

Extravaganza 本月在巴西推出，細分。所以巴西的表現有所下降，但正如我們預期的那樣。在巴西，這並不奇怪。

And in the U.S., good strength across the board. When I look at not just the financial numbers but all of the nonfinancial metrics that we track around new members in terms of volume points, Preferred Members, comembers, Sales Leaders with volume points. Everyone's in the black. They're all very strong. And I think most impressively for us, and this is really unique to those that know us well, is tremendous moving up the marketing plan.

而在美國，整體實力強勁。當我不僅關注財務數據，還關注所有非財務指標時，我們會根據交易量積分、首選會員、新成員、銷售領先者的交易量積分來追蹤新會員。每個人都陷入困境。他們都很強。我認為對我們來說最令人印象深刻的是行銷計劃的巨大推進，這對於熟悉我們的人來說確實是獨一無二的。

Now having said that, Q2 comps get tough for the U.S., right? But the broad-based strength across the U.S. is something we're quite proud of. And I think our distributors deserve a lot of credit for overcoming everything they had to endure.

話雖如此，第二季的比較對美國來說變得很艱難，對吧？但我們對美國各地廣泛的實力感到非常自豪。我認為我們的經銷商克服了他們必須忍受的一切，值得讚揚。

Great. And I have kind of one more on the U.S., one more question, if I may. That is, did the new POS tool or the enhanced POS tool roll out to the distributors per plan in April.

偉大的。如果可以的話，我還有一個關於美國的問題，還有一個問題。也就是說，4 月是否按計畫向經銷商推出了新的 POS 工具或增強的 POS 工具。

Yes. So it rolled out and it's ramping up. So it rolled out but it rolled out in a coordinated fashion to not -- so we can test the system and not overload it. So it wasn't a big bang. I think it rolls out to everybody in May 18. But it rolled out to a controlled group in April. And then I'm equally excited about the customer app that is the second launch of the Nutrition Club tool that launches at Extravaganza where customers will be able to order their product before they even show up at the club, similar to the way I do when I go to Starbucks in the morning.

是的。所以它推出了並且正在加速。所以它推出了，但它以協調的方式推出——這樣我們就可以測試系統而不是使其過載。所以這不是一個大爆炸。我認為它會在 5 月 18 日向所有人推出。但它在四月向一個受控群體推出了。然後，我同樣對客戶應用程式感到興奮，這是營養俱樂部工具的第二次發布，該工具在 Extravaganza 上推出，客戶甚至可以在出現在俱樂部之前訂購他們的產品，類似於我在我早上去星巴克。

Perfect. And then if I may, I'd like to go back to China. Can you remind us at this point how much in total you received in the China grant money, I think you got some more this particular quarter 1Q '19? And then how much you spent back of it. I feel like that's a fairly small amount that's been spent back so far. Is that right?

完美的。如果可以的話，我想回到中國。您現在能否提醒我們您總共收到了多少中國補助金？我想您在 19 年第一季這一特定季度還收到了更多資金？然後你又花了多少錢。我覺得到目前為止花費的金額相當小。是對的嗎？

Yes, that's right. So we received this quarter an additional $21 million from the China grant income. And as you know, we carve that out. We've spent this past quarter about $0.7 million. So obviously, with the 100-day impact, it was a little unclear about where that spend -- what we would do. I think going forward, there is a lot of the ad and promo spend to get past the 100-day impact. I think we'll be doing significantly more spending in the future. And in total, that brings the growth in investment fund to about $135 million.

恩，那就對了。因此，本季我們從中國贈款收入中額外獲得了 2,100 萬美元。如您所知，我們解決了這個問題。上個季度我們花了約 70 萬美元。顯然，考慮到 100 天的影響，我們不太清楚這筆錢花在哪裡——我們會做什麼。我認為，展望未來，需要大量的廣告和促銷支出來度過 100 天的影響。我認為我們未來的支出將會大幅增加。總的來說，這使得投資基金成長至約 1.35 億美元。

Got it. With the vast majority of that though still yet to be used.

知道了。其中絕大多數尚未使用。

With the vast majority available. That's right.

絕大多數可用。這是正確的。

Okay. Perfect. One question on the P&L. For the full year, it was nice to see the operating margin expansion in this quarter. Do you expect -- understanding that you want to spend a lot back in some markets like Brazil and China, but are you expecting operating margin to continue to expand as you go through the year?

好的。完美的。關於損益表的一個問題。就全年而言，很高興看到本季營業利潤率的擴張。您是否期望—了解您希望在巴西和中國等一些市場投入大量資金，但您是否預期營業利潤率將在這一年中繼續擴大？

So a little bit of that will be dependent on how fast China comes back. China, as it is a smaller percentage of our net sales this quarter actually was a bit of a headwind to us on gross margin and operating margin. As that comes back, that should give a bit of a benefit to operating margins. So a little bit of that answer will just depend on how quickly China does come back.

因此，其中一點將取決於中國恢復的速度。中國，因為它占我們本季淨銷售額的比例較小，實際上對我們的毛利率和營業利潤率來說有點不利。當這種情況回來時，這應該會為營業利潤帶來一些好處。因此，這個答案在一定程度上取決於中國恢復的速度。

Great. And one last one. On converts due in August. I understand -- I assume we're still waiting for a decision on whether to refinance or to pay that off. If you do refinance, would the objective be here in '19 or into '20, to use the cash, assuming you'd have quite a bit at that point of $1 billion, to use that for buybacks?

偉大的。還有最後一張。八月到期的皈依者。我理解 - 我認為我們仍在等待是否再融資或還清債務的決定。如果你進行再融資，目標是在 19 年還是 20 年使用現金（假設你當時有相當多的 10 億美元）用於回購？

Yes, Beth. This is John. I'll take that. So in kind of bullet point form, first we are comfortable with our current leverage ratio, we've said that for a long time. From a timing standpoint, we may pay off the debt in August, and our plan is to do that. And at some point in time, we'll finance either before or after depending on the circumstances. And the entire purpose of all of that capital structure is to buy back stock. We have $1.5 billion buyback program. I think we've bought, I don't know, probably close to $5 billion over the last 12 years since they started. That's what we believe the appropriate capital structure is for this company and that's the likely use of the cash.

是的，貝絲。這是約翰。我會接受的。因此，以要點的形式，首先我們對當前的槓桿率感到滿意，我們已經這麼說了很長時間了。從時間角度來看，我們可能會在八月還清債務，我們的計劃就是這樣做。在某個時間點，我們將根據具體情況在之前或之後提供融資。所有這些資本結構的全部目的都是回購股票。我們有 15 億美元的回購計畫。我想，我不知道，自他們成立以來的過去 12 年裡，我們可能已經買了近 50 億美元。這就是我們認為適合該公司的資本結構，也是現金的可能用途。

(Operator Instructions) Our next question is from the line of Hale Holden from Barclays.

（操作員說明）我們的下一個問題來自巴克萊銀行的 Hale Holden。

Just 2 questions. Just as a follow-up on the converts, the current plan is to hold off on stock repurchases until you find a solution for the converts. Is that -- that's still correct, right?

只有 2 個問題。正如對轉換者的後續行動一樣，目前的計劃是推遲股票回購，直到為轉換者找到解決方案。這仍然是正確的嗎？

Well, the priority has always been to be in a position to pay off the converts until we refinance or if we refinance. And if we decide to refinance, then at a later date, we'll lever back up. And that's been the priority.

嗯，首要任務始終是能夠償還轉換者的債務，直到我們再融資或如果我們再融資。如果我們決定再融資，那麼稍後我們將重新槓桿化。這是當務之急。

Okay. And then just as a follow-up on China. If you sign an agreement with BABA or Tencent, does that change your selling margin structure in the market at all?

好的。然後作為中國的後續行動。如果你與阿里巴巴或騰訊簽署協議，這是否會改變你在市場上的銷售利潤結構？

No, I don't anticipate a change in the margin structure by signing a deal for a platform that allows our sales reps [in terms] of one of these customers to order directly from the company on their behalf. I don't anticipate that having any meaningful impact on margin. I'm sure the development cost -- I mean if you kind of roll in the development cost, it might. But that's still -- we do have $130-plus million in China from this growth initiative fund that we can use to invest in this platform.

不，我預計不會透過簽署平台協議來改變利潤結構，該平台允許我們的銷售代表[就]這些客戶之一代表他們直接從公司訂購。我預計這不會對利潤率產生任何有意義的影響。我確信開發成本——我的意思是，如果你算上開發成本，它可能會。但這仍然是——我們在中國確實從這個成長倡議基金中獲得了 1.3 億多美元，我們可以用它來投資這個平台。

And at this time, I'm showing that we have no further questions. I'd like to turn the call back over to Michael Johnson for closing remarks.

此時，我表明我們沒有其他問題了。我想將電話轉回給邁克爾·約翰遜（Michael Johnson）致閉幕詞。

Thanks. And thanks, everyone, for being on the call. I'm looking at my notes that John and Alex prepared for me for the call here, and the experience back in the company of a quarter that's actually pretty sensational, net sales of $1.2 billion; growth in 4 of the 6 regions; year-over-year growth; 7 of the top 10 markets; 1.5 billion of volume points, the highest quarter in Q1 in the company's history. It's up 6% over 2018 first quarter and our fourth consecutive record quarter. So those are all really good. Those are fantastic.

謝謝。感謝大家的參與。我正在查看約翰和亞歷克斯為我的電話會議準備的筆記，以及在公司的一個季度的經歷，這實際上是非常轟動的，淨銷售額為 12 億美元； 6 個地區中有 4 個地區成長；年成長；前 10 個市場中的 7 個； 15 億交易量點，是該公司史上第一季最高的季度交易量。較 2018 年第一季成長 6%，連續第四個季度創紀錄。所以這些都非常好。那些太棒了。

But we understand the focus on China, and we are focused on it. We'll get through this. Thank God our business is global. We know our products are great. Our employees and distributors are passionate about what we bring to the marketplace. And we are all confident about Herbalife. We're confident also that we'll get through this in China and we'll see better days ahead. So looking forward to seeing you. With that said, it's back to work and we'll see you next quarter.

但我們理解對中國的關注，我們也專注於此。我們會渡過難關的。感謝上帝，我們的業務是全球性的。我們知道我們的產品很棒。我們的員工和經銷商對我們推向市場的產品充滿熱情。我們對康寶萊充滿信心。我們也有信心在中國度過難關，我們會看到更好的日子。非常期待見到您。話雖如此，一切都恢復正常了，我們下個季度再見。

Ladies and gentlemen, this does conclude the conference. We thank you greatly for joining us for Herbalife First Quarter 2019 Earnings Conference Call. You may now disconnect.

女士們、先生們，本次會議到此結束。我們非常感謝您參加康寶萊 2019 年第一季財報電話會議。您現在可以斷開連線。