康寶萊 (HLF) 2019 Q4 法說會逐字稿

Good afternoon, and thank you for joining the Fourth Quarter 2019 Earnings Conference Call for Herbalife Nutrition Ltd. On the call today is Michael Johnson, the company's Chairman and CEO; Dr. John Agwunobi, the company's co-President and Chief Health and Nutrition Officer; John DeSimone, the company's co-President and Chief Strategic Officer; Alex Amezquita, the company's Senior Vice President of Finance, Strategy and Investor Relations; 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 2019 年第四季財報電話會議。今天參加電話會議的是該公司董事長兼執行長 Michael Johnson；公司聯合總裁兼首席健康與營養官 John Agwunobi 博士； John DeSimone，公司聯席總裁兼首席策略長； 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。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 involve assumptions and 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.

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。這些陳述涉及假設，並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 表格年度報告。

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.

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。

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. 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.

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（美國證券交易委員會稱為非公認會計準則財務指標）編制的財務報表中包含的可比較指標不同。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，正如我們的收益發布補充時間表中更詳細討論的那樣。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, and thank you for joining us for our fourth quarter 2019 conference call. Before I start today, I really want to express our heartfelt compassion to the citizens of China for the difficult time they're going through. John Agwunobi, John DeSimone and Alex Amezquita will talk about the business impact, but the impact on our employees, distributors and their families is the utmost concern, and we wish them all the best.

大家下午好，感謝您參加我們 2019 年的第四季電話會議。在今天開始之前，我真的想向正在經歷困難時期的中國公民表達我們衷心的同情。John Agwunobi、John DeSimone 和 Alex Amezquita 將討論業務影響，但對我們的員工、經銷商及其家人的影響是最關心的問題，我們祝他們一切順利。

On to the year. 2019 was a record year for Herbalife Nutrition. The incredible momentum we've built resulted in an all-time high in terms of volume points. And for the fourth quarter, 9 of our top 10 countries delivered year-over-year net sales growth. In a moment, John, John and Alex will take you through the results for the full year and fourth quarter as well as provide an update on our China business.

到了年。2019 年是康寶萊營養創紀錄的一年。我們所建立的令人難以置信的勢頭導致成交量創下歷史新高。第四季度，前 10 個國家中有 9 個國家實現了年比淨銷售額成長。稍後，約翰、約翰和亞歷克斯將向您介紹全年和第四季的業績，並提供我們中國業務的最新情況。

As I wrap up my tenure as CEO at our Honors event in March and retire as Chairman and Board member at our Annual General Meeting in April, I just want to state what an honor it has been to work alongside our distributor leaders, our talented corporate management team and our wonderful employees, to serve our distributors and their customers, driving growth of Herbalife Nutrition over the last 17 years. It is truly remarkable how far we have come since we began this journey together in 2003.

當我在三月的榮譽活動中結束我作為執行長的任期，並在四月份的年度股東大會上以董事長和董事會成員的身份退休時，我只想表達與我們的經銷商領導者、我們才華橫溢的企業一起工作是多麼的榮幸。管理團隊和我們優秀的員工，為我們的經銷商及其客戶提供服務，推動康寶萊營養在過去 17 年的成長。自 2003 年我們一起踏上這段旅程以來，我們所取得的進步確實令人矚目。

Our growth continues to confirm the demand for our products and the value of our distributors. Since 2003, our volume points have increased from 1.5 billion to over 6 billion in 2019. And that demand has grown around the world as we are now operating in more than 90 countries, up from 58 in 2003. We have the best business opportunity anywhere, and our distributors are succeeding like never before. The number of distributors in our prestigious President's Team has almost quadrupled from approximately 650 to over 2,500. And the number of distributors in our elite Founder's Circle and Chairman's Cup has more than tripled from 21 in 2003 to 67 today.

我們的成長繼續證實了對我們產品的需求和我們經銷商的價值。自2003年以來，我們的交易量點已從15億增加到2019年的60億以上。隨著我們目前在 90 多個國家/地區開展業務，這項需求在全球範圍內不斷增長，而 2003 年只有 58 個國家。我們在任何地方都擁有最好的商業機會，我們的經銷商也取得了前所未有的成功。我們享有盛譽的總裁團隊中的經銷商數量幾乎翻了兩番，從大約 650 人增加到 2,500 多人。我們精英創辦人圈子和主席杯的經銷商數量增加了兩倍多，從 2003 年的 21 家增加到今天的 67 家。

The value of our distributor leaders, it just can't be overstated. Our distributors today have a better understanding of their business than ever before, with new tools, data and technology co-designed with them to help them succeed. In order to support our distributors and their growing businesses, our global employee family has increased from approximately 1,000 in 2003 to almost 9,500 today.

我們經銷商領導者的價值怎麼強調都不為過。如今，我們的經銷商比以往任何時候都更了解自己的業務，並透過與他們共同設計的新工具、數據和技術來幫助他們取得成功。為了支持我們的經銷商及其不斷發展的業務，我們的全球員工隊伍已從 2003 年的約 1,000 人增加到如今的近 9,500 人。

In the product arena, we've provided our distributors with more product to meet their customers' needs. Importantly, through our Seed to Feed program, we are now manufacturing approximately 65% of our products in our own state-of-the-art facilities. From 2003 to 2019, we launched 9,100 product SKUs, with more than 200 of those being new products, including Niteworks developed with Nobel Prize-winning Dr. Lou Ignarro; our sports nutrition line, Herbalife24 that helped us attract a new, younger and active distributor base; and our Herbalife SKIN line. These products are more accessible to our distributors and their customers than ever before as we've increased our distribution access points from 117 to almost 2,000. And all of this has resulted in our status as a #1 brand in meal replacement, and the #1 brand in weight management as measured by Euromonitor.

在產品領域，我們為經銷商提供了更多產品來滿足客戶的需求。重要的是，透過我們的「種子到飼料」計劃，我們現在大約 65% 的產品是在我們自己最先進的設施中生產的。2003年至2019年，我們推出了9,100個產品SKU，其中200多個是新產品，包括與諾貝爾獎得主Lou Ignarro博士開發的Niteworks；我們的運動營養品系列 Herbalife24 幫助我們吸引了新的、年輕的、活躍的經銷商群；以及我們的 Herbalife SKIN 系列。我們的經銷商及其客戶比以往任何時候都更容易獲得這些產品，因為我們已將分銷接入點從 117 個增加到近 2,000 個。所有這些都使我們成為代餐第一品牌和體重管理第一品牌（根據 Euromonitor 的衡量）。

On to our brand, where we built a stronger brand through the years with incredible athlete to endorse and use our products, and in some cases, work with our nutrition and fitness experts to achieve peak performance. This is something we've built from scratch since 2003, and we now sponsor over 200 athletes and teams around the world across a multitude of sports, including our own LA Galaxy and Cristiano Ronaldo. We also sponsor community and athletic events in the world, including triathlons like the Herbalife24 Triathlon Los Angeles, which we brought back to our home city last year. We'll be doing it again in May this year, and I can't wait to join distributors and employees for this really spectacular event.

關於我們的品牌，多年來我們建立了一個更強大的品牌，並得到了令人難以置信的運動員的認可和使用我們的產品，並且在某些情況下，與我們的營養和健身專家合作以實現最佳表現。這是我們自 2003 年以來白手起家的事情，現在我們贊助了世界各地 200 多名運動員和球隊，涉及多種體育項目，包括我們自己的洛杉磯銀河隊和克里斯蒂亞諾·羅納爾多。我們也贊助世界各地的社區和體育活動，包括像 Herbalife24 洛杉磯鐵人三項賽這樣的鐵人三項賽，我們去年將其帶回了我們的家鄉。今年五月我們將再次舉辦這場盛會，我迫不及待地想與經銷商和員工一起參加這場盛大的活動。

As for our image, we've grown our Herbalife Nutrition Foundation, continuing our mission of providing good nutrition and nutrition education to disadvantaged children around the world. Since 2005, we've granted more than $33 million to nonprofits globally and have grown our Casa Herbalife program from 6 partners to more than 170 today. To say we're proud of our distributors, employees and support the foundation is an understatement.

至於我們的形象，我們已經發展了康寶萊營養基金會，繼續我們的使命，為世界各地的弱勢兒童提供良好的營養和營養教育。自 2005 年以來，我們已向全球非營利組織捐贈了超過 3,300 萬美元，我們的 Casa Herbalife 計劃合作夥伴也從 6 個發展到如今的 170 多個。說我們為我們的經銷商、員工和對基金會的支持感到自豪，這都是輕描淡寫的說法。

Our leadership team is stronger, more confident and more ready than ever. And as I highlighted on the last call, our Board of Directors and I have complete confidence the future leaders of this company will continue Herbalife's positive trajectory. As you heard me say 1,000 times before, there's never been a better time to be part of Herbalife Nutrition. With my good friend John Agwunobi leading Herbalife as CEO, I've never been more confident in the future of our company, not only as a shareholder, of course, but also as a continuing mentor to our company leaders and distributors. As this great company celebrates its 40th year and enters its fifth decade, I couldn't be more excited about the future. Now let me turn the call over to my good friend and incoming CEO, Dr. John Agwunobi.

我們的領導團隊比以往任何時候都更加強大、更有自信、更有準備。正如我在上次電話會議中所強調的那樣，我們的董事會和我完全有信心該公司的未來領導者將繼續康寶萊的積極發展軌跡。正如您之前聽我說過 1,000 次一樣，現在是加入康寶萊營養的最佳時機。在我的好朋友約翰·阿格武諾比(John Agwunobi) 擔任康寶萊執行長的帶領下，我對公司的未來從未如此充滿信心，當然，不僅作為股東，而且作為公司領導者和經銷商的持續導師。在這家偉大的公司慶祝成立 40 週年並進入第 5 個十年之際，我對未來感到無比興奮。現在讓我把電話轉給我的好朋友、即將上任的執行長約翰‧阿格武諾比 (John Agwunobi) 博士。

Thank you, Michael. I've had the honor of working closely with you since I joined Herbalife Nutrition at the beginning of 2016. And one thing that has always been abundantly clear is your passion for this company. That passion has resulted in incredible growth over the past 17 years, as you highlighted in your remarks.

謝謝你，麥可。自從 2016 年初加入康寶萊營養以來，我很榮幸能與您密切合作。一直非常清楚的一件事是您對這家公司的熱情。正如您在演講中所強調的那樣，這種熱情在過去 17 年裡帶來了令人難以置信的成長。

The success of our distributors, who are at the heart and soul of this company has been furthered by your vision and your leadership. You have led with integrity and you've brought us to this point in our 40-year history, setting the stage for what I know are exciting years to come. Because of you, we are improving more lives around the world than ever before through better nutrition and an incredible business opportunity. I know I speak for our distributors, our executive team, our employees and our shareholders when I say thank you for all you have done. Our job now, to use your words, is to continue to build it bigger, better and stronger than ever before.

我們的經銷商是公司的核心和靈魂，您的遠見和領導力進一步推動了他們的成功。您以誠信領導我們，帶領我們走到了 40 年歷史的這一步，為我所知道的令人興奮的未來奠定了基礎。因為你們，我們透過更好的營養和令人難以置信的商業機會，比以往任何時候都改善了世界各地更多的生活。我知道，當我對你們所做的一切表示感謝時，我代表我們的經銷商、我們的執行團隊、我們的員工和我們的股東。用您的話來說，我們現在的工作是繼續將其建立得比以往任何時候都更大、更好、更強。

But before we look forward, let's look back at 2019, starting with our financial results. As you saw from our press release today, we delivered full year volume points of 6.1 billion, a record for the company and a 3% increase compared to 2018. Our performance demonstrates the strength of our geographic diversity as we achieved this record despite challenges in China. Excluding China, volume points for the year grew nearly 7%. 3 of our 6 regions and 6 of our top 10 countries set volume point records for the year.

但在展望未來之前，讓我們先回顧一下 2019 年，首先從我們的財務表現開始。正如您從我們今天的新聞稿中看到的，我們全年交付量達到 61 億個點，創下了公司的記錄，與 2018 年相比增長了 3%。儘管在中國面臨挑戰，我們仍取得了這項記錄，我們的業績證明了我們地域多樣性的優勢。不包括中國，今年的銷量成長了近 7%。我們 6 個地區中的 3 個和排名前 10 的國家中的 6 個創下了今年的銷售記錄。

Today, we also announced sales leader retention results for the last 12-month requalification period ending in January of 2020. The absolute number of sales leaders retained for the year is just under 300,000, the highest in our history. This result is reflective of the ongoing sustainability of our business and the opportunity that we offer to our distributors. Yes, 2019 was a record-breaking year and we take that momentum with us now as we go into 2020. We have the right strategy and our distributors and our employees are focused on the right priorities.

今天，我們也公佈了截至 2020 年 1 月的最後 12 個月重新資格期的銷售領導者保留結果。今年保留的銷售領導者的絕對人數接近 30 萬人，是我們歷史上最高的。這一結果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。是的，2019 年是破紀錄的一年，當我們進入 2020 年時，我們將繼續保持這一勢頭。我們擁有正確的策略，我們的經銷商和員工都專注於正確的優先事項。

During the year, we made significant progress on our established growth strategies of product expansion and technology innovation. On the product front, we launched 20 new products and introduced over 480 new SKUs across our markets worldwide. These new products will enable us to better satisfy the tastes, the preferences and the nutrition needs of our customers worldwide.

年內，我們在產品擴張和技術創新的既定成長策略方面取得了重大進展。在產品方面，我們推出了 20 款新產品，並在全球市場推出了 480 多個新 SKU。這些新產品將使我們能夠更好地滿足全球客戶的口味、偏好和營養需求。

From a technology perspective, we developed and ushered in multiple new tools and technologies to increase our distributor-to-customer connectivity, to enhance our distributor scalability and to improve the distributor and customer experience. But no amount of technology can ever take the place of our distributors. The personalized advice, service and support that they provide to their customers is a key point of differentiation. It's what makes us unique. We look forward to providing a more detailed update on our growth strategies on Thursday this week during our presentation at CAGNY in Florida.

從技術角度來看，我們開發並引入了多種新工具和技術，以增強分銷商與客戶的連接性、增強分銷商的可擴展性並改善分銷商和客戶的體驗。但再多的技術也無法取代我們的經銷商。他們向客戶提供的個人化建議、服務和支援是差異化的關鍵點。這就是我們的獨特之處。我們期待於本週四在佛羅裡達州 CAGNY 的演講中提供有關我們成長策略的更詳細的最新資訊。

Like many other companies, the outbreak of coronavirus has impacted our business on Mainland China and elsewhere in the region. Our first priority is ensuring the safety of our employees and distributors, and we've taken prudent steps to do so, including limiting travel and postponing meetings where appropriate. Herbalife Nutrition, together with Herbalife Nutrition Foundation, is supporting relief efforts with a significant donation to MedShare International, specifically focusing on bringing urgently needed medical supplies into that region. Moreover, we have increased our charitable giving to additional local emergency relief efforts as part of our foundation's work. I'm proud to say that our distributors in China have done the same thing and that their philanthropic giving continues.

與許多其他公司一樣，冠狀病毒的爆發影響了我們在中國大陸和該地區其他地區的業務。我們的首要任務是確保員工和經銷商的安全，為此我們採取了謹慎的措施，包括限制旅行和酌情延遲會議。康寶萊營養與康寶萊營養基金會一起向 MedShare International 提供大量捐款，以支持救援工作，特別致力於為該地區提供急需的醫療用品。此外，作為基金會工作的一部分，我們還增加了對當地緊急救援工作的慈善捐贈。我很自豪地說，我們在中國的經銷商也做了同樣的事情，他們的慈善捐贈仍在繼續。

The situation in China and around the globe is emerging, and we're gathering data points and monitoring the market very, very closely. The scope and duration of business disruption and the related financial impact from the coronavirus can't be reasonably estimated at this time. But it could materially impact our consolidated results for the first quarter and for the full year 2020. As such, we will update our guidance for the full year 2020 when we can reasonably estimate the impact on our near-term business results. We remain optimistic, and we're committed to the long-term opportunity in China.

中國和全球各地的情況正在出現，我們正在收集數據點並非常非常密切地監控市場。目前無法合理估計冠狀病毒造成的業務中斷的範圍和持續時間以及相關的財務影響。但這可能會對我們第一季和 2020 年全年的綜合業績產生重大影響。因此，當我們能夠合理估計對我們近期業務表現的影響時，我們將更新 2020 年全年的指引。我們保持樂觀，並致力於中國的長期機會。

As I prepare to step into my new role as CEO, I'm incredibly excited about the opportunities ahead for Herbalife Nutrition. Since the CEO announcement, I've had the opportunity to travel to many of our key markets, to meet with our distributors, for example, in China, in Korea, in Peru and across the U.S. Our distributors are the engine of Herbalife Nutrition. Seeing their enthusiasm and commitment to improving their communities and to changing people's lives through better nutrition and personalized support is one of the things that gives me confidence in our future.

當我準備擔任執行長的新角色時，我對康寶萊營養未來的機會感到非常興奮。自從任命執行長以來，我有機會前往我們的許多主要市場，與我們的經銷商會面，例如在中國、韓國、秘魯和美國各地。我們的經銷商是康寶萊營養的引擎。看到他們對透過更好的營養和個人化支持來改善社區和改變人們的生活的熱情和承諾，是讓我對我們的未來充滿信心的事情之一。

There are millions around the world who still need to hear what we have to offer, and I'm eager for us to continue to unlock the tremendous opportunities that lie ahead. Working closely with my friend and colleague, John DeSimone, along with our extraordinary team, we will continue to grow our business and help even more people around the globe pursue healthy, active lifestyles and a unique entrepreneurial opportunity. I would now like to turn the call over to John to provide an update on key market performance.

世界各地仍有數百萬人需要了解我們所提供的服務，我渴望我們能夠繼續釋放未來的巨大機會。我們將與我的朋友兼同事 John DeSimone 以及我們出色的團隊密切合作，繼續發展我們的業務，幫助全球更多的人追求健康、積極的生活方式和獨特的創業機會。我現在想將電話轉給約翰，以提供有關主要市場表現的最新資訊。

Thank you, John. I want to once again thank Michael for his countless contributions to the company and the significant role he has played in leading and evolving Herbalife Nutrition into the premier nutrition company that it is today and in mentoring me for more than a decade. We have a very talented and long-tenured management team, and together, I believe we are well positioned to drive growth for years to come under John Agwunobi's leadership.

謝謝你，約翰。我想再次感謝邁克爾對公司的無數貢獻，以及他在領導康寶萊營養並將其發展成為當今首屈一指的營養公司方面所發揮的重要作用，以及十多年來對我的指導。我們擁有一支非常有才華且長期任職的管理團隊，我相信，在約翰·阿格武諾比 (John Agwunobi) 的領導下，我們將齊心協力，在未來幾年內推動成長。

Turning now to the regional performance, where 2019 was highlighted by 3 regions setting annual volume point records. As we have highlighted before, the geographic diversity of our company is an asset that resulted in a record 2019 despite challenges in China, one of our largest markets. Excluding China, volume points grew 6.7% in the year; net sales grew 6.2%; and constant currency net sales grew nearly 10%. For the fourth quarter, the year-over-year growth rate accelerated to 4% from 2% in Q3, and we saw a continued improvement in the year-over-year trend in China.

現在談談地區表現，2019 年有 3 個地區創下了年度交易量記錄。正如我們之前所強調的，儘管我們最大的市場之一中國面臨挑戰，但我們公司的地理多樣性是一項資產，使我們在 2019 年取得了創紀錄的業績。不包括中國，全年銷量成長 6.7%；淨銷售額成長 6.2%；以固定匯率計算淨銷售額成長近 10%。第四季年增速從第三季的2%加快至4%，我們看到中國年增率持續改善。

In the U.S., the strength of the business continued in the fourth quarter, with volume increasing by 7% compared to the fourth quarter of 2018. We ended 2019 with year-over-year growth in every quarter for the second year in a row. Net sales for the full year of over $1 billion represents a record high, an increase of over 8% versus 2018 for the U.S.A.

在美國，第四季業務持續強勁，銷量較 2018 年第四季成長 7%。2019 年結束時，我們連續第二年每季都實現了年成長。美國全年淨銷售額超過 10 億美元，創歷史新高，與 2018 年相比成長超過 8%。

Moving to the Asia Pacific region, it continued its record-breaking year, with volume points increasing 17% year-over-year and setting another all time-high result. This is the eighth quarter in a row of record high-volume results in APAC and, once again, the growth was very broad-based. The 2-year stack volume point results for the fourth quarter was 53%. The growth rate in the region was led by India, Indonesia, Vietnam, Malaysia and South Korea, all of which grew by double digits. India volume increased by 24% during the quarter, where we are continuing to focus on improving the access for distributors in Tier 2 and Tier 3 cities by increasing the number of access points.

轉向亞太地區，今年持續打破紀錄，成交量年增 17%，再創歷史新高。這是亞太地區連續第八個季度實現創紀錄的高產量業績，而且成長的基礎再次非常廣泛。第四季的 2 年堆疊量點結果為 53%。該地區的成長率領先印度、印尼、越南、馬來西亞和韓國，這些國家均實現了兩位數成長。本季印度銷量成長了 24%，我們繼續致力於透過增加接入點數量來改善二線和三線城市經銷商的接入。

In the fourth quarter, the number of access points, including third-party drop-off points, increased to over 1,600, which is more than double the number we had in Q4 2018. Vietnam volume points increased 30% for the fourth quarter, closing out a very successful 2019 with growth of 37% compared to 2018. Indonesia volume was up 27%; Malaysia was up 29%; and Korea was up 12%. For the full year, net sales in the region increased 18%. Full year net sales of $1.25 billion represented the largest year for any single region in company history.

第四季度，包括第三方投遞點在內的接取點數量增加至 1,600 多個，是 2018 年第四季數量的兩倍多。越南第四季銷量成長了 30%，與 2018 年相比成長了 37%，為 2019 年畫上了圓滿的句號。印尼銷量成長 27%；馬來西亞上漲29%；韓國上漲了 12%。全年該地區的淨銷售額增長了 18%。全年淨銷售額達 12.5 億美元，是該公司歷史上單一地區銷售額最高的一年。

Turning to Mexico. Volume points were down 4% in the quarter but net sales actually increased 2%. For the full year, net sales increased 1% as currency neutralized in the region and our ability to take price increases offset a decrease in volume of 4%. Looking at South and Central America, volume points declined 6%, which was in line with the decline from a quarter ago. We saw a sequential improvement in trends in Brazil along with over 34,000 new preferred members joining during the fourth quarter. Since the launch of segmentation in Brazil, we have seen approximately 75% of sign-ups join as preferred members. The improving trends in Brazil were offset with softness in Argentina, Ecuador and Bolivia, all of which are experiencing economic challenges at a macro level.

轉向墨西哥。本季銷量下降 4%，但淨銷售額實際上成長了 2%。全年淨銷售額成長了 1%，因為該地區的貨幣趨於中性，而且我們有能力接受價格上漲，抵消了銷量下降 4% 的影響。看看南美洲和中美洲，成交量下降了 6%，與上一季的降幅一致。我們看到巴西的趨勢持續改善，第四季有超過 34,000 名新首選會員加入。自從在巴西推出細分以來，我們發現大約 75% 的註冊者成為首選會員。巴西的改善趨勢被阿根廷、厄瓜多和玻利維亞的疲軟所抵消，這些國家都在宏觀層面面臨經濟挑戰。

Turning to EMEA, the region continued its pattern of consistent growth, which now totals 39 consecutive quarters, increasing 3% during the quarter. EMEA ended the year with full year volume point growth of 6% and local currency net sales growth of 8.5%. Both net sales and volume points were record highs for the region in 2019. For the year, the increases were very broad-based, led by Russian-speaking markets, South Africa and Spain.

至於歐洲、中東和非洲地區，該地區延續了持續成長的模式，目前已連續 39 個季度成長 3%。歐洲、中東和非洲地區全年銷量成長 6%，以當地貨幣計算的淨銷售額成長 8.5%。2019 年該地區的淨銷售額和銷量均創下歷史新高。今年，成長範圍非常廣泛，其中以俄語市場、南非和西班牙為首。

Turning to China, volume points decreased 13%, an improvement in the trend from Q3, which had declined 19%. As we mentioned on last quarter's call, in response to last year's 100-day campaign when sales meetings were curtailed, we launched a personal e-store on WeChat at the beginning of Q4. This new technology was designed to give service providers and sales reps another platform to sell products so they would be less dependent on meetings and nutrition clubs. It comes with some features such as instant pay, which allows our sales representatives with the ability to receive their rebates in a matter of days instead of at the end of a month. Since its launch, approximately 30% of total volume in China has come from the personal e-store.

轉向中國，成交量下降 13%，較第三季下降 19% 的趨勢有所改善。正如我們在上季度的電話會議中提到的，為了回應去年百日活動中減少銷售會議的情況，我們在第四季度初在微信上推出了個人電子商店。這項新技術旨在為服務提供者和銷售代表提供另一個銷售產品的平台，從而減少他們對會議和營養俱樂部的依賴。它具有一些功能，例如即時付款，這使我們的銷售代表能夠在幾天內而不是月底收到回扣。自推出以來，中國約30%的交易量來自個人網路商店。

Looking into 2020, as John Agwunobi said in his opening remarks, the safety and well-being of our customers, service providers, sales reps and employees and their families are the top priority. And as such, we have taken a number of prudent steps to do so, including limiting travel and postponing meetings where appropriate. And while the duration of the business disruption from the coronavirus cannot reasonably be estimated at this time, many of the new initiatives implemented last year, like the personal e-store, combined with an incredible pipeline of new products planned in China and our continued investment in the market through our China growth and impact investment program, should help benefit our service providers, sales reps and their customers throughout 2020. I will now turn the call over to Alex to provide an update on the financials.

展望 2020 年，正如 John Agwunobi 在開幕詞中所說，我們的客戶、服務提供者、銷售代表、員工及其家人的安全和福祉是重中之重。因此，我們採取了一系列審慎的措施來做到這一點，包括限制旅行和酌情延遲會議。雖然目前無法合理估計冠狀病毒造成的業務中斷的持續時間，但去年實施的許多新舉措（例如個人電子商店），加上中國計劃推出的大量新產品以及我們的持續投資通過我們的中國增長和影響力投資計畫在市場上的投資，應該有助於我們的服務提供者、銷售代表及其客戶在2020 年受益。我現在將把電話轉給亞歷克斯，以提供最新的財務狀況。

Thank you, John. Fourth quarter net sales of $1.2 billion represents an increase of 3% on a reported basis compared to the fourth quarter in 2018, which included growth in 9 of our top 10 countries. Full year 2019 reported net sales of $4.9 billion were approximately flat on a reported basis, but adjusting for foreign exchange impact, net sales for the year increased 3%. And excluding China, local currency net sales grew almost 10% for the year.

謝謝你，約翰。根據報告，第四季度淨銷售額為 12 億美元，較 2018 年第四季成長 3%，其中 10 個國家中的 9 個國家實現了成長。2019 年全年淨銷售額為 49 億美元，與報告基礎上基本持平，但調整外匯影響後，全年淨銷售額增長了 3%。如果不包括中國，今年以當地貨幣計算的淨銷售額成長了近 10%。

For the fourth quarter, we reported net income of approximately $56.7 million or $0.40 per diluted share. Adjusted earnings per share of $0.74 included expenses related to the China growth program of approximately $9 million or $0.05 per share. This was above the high end of our guidance range of $0.68. The impact of currency fluctuations represented a year-over-year headwind of approximately $0.04.

第四季度，我們公佈的淨利潤約為 5,670 萬美元，即稀釋後每股收益 0.40 美元。調整後每股收益為 0.74 美元，其中包括與中國成長計畫相關的費用約 900 萬美元，即每股 0.05 美元。這高於我們指導範圍的上限 0.68 美元。貨幣波動的影響相當於同比阻力約 0.04 美元。

Reported gross margin for the fourth quarter of 81.2% increased by approximately 20 basis points compared to the prior year period. Note that the incremental but now discontinued tariff in Mexico that negatively impacted our gross margin earlier in the year is no longer a headwind. Fourth quarter 2019 reported and adjusted SG&A as a percentage of net sales were 43.3% and 39.9%, respectively. Excluding China member payments, adjusted SG&A as a percentage of net sales was 30.5%, approximately 50 basis points unfavorable to the fourth quarter 2018, which was largely due to the timing of certain year-end accruals.

報告第四季毛利率為 81.2%，較去年同期成長約 20 個基點。請注意，墨西哥增加但現已終止的關稅今年稍早對我們的毛利率產生了負面影響，但不再是不利因素。2019 年第四季報告和調整後的 SG&A 佔淨銷售額的百分比分別為 43.3% 和 39.9%。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30.5%，比2018 年第四季不利約50 個基點，這主要是由於某些年終應計專案的時間安排所致。

Our fourth quarter reported effective tax rate was approximately 29.2%, and our adjusted effective tax rate was 16.5%, which was materially lower than our expectations. This was primarily driven by discrete tax benefits of approximately $11.4 million or $0.08 per share.

我們第四季報告的有效稅率約為 29.2%，調整後的有效稅率為 16.5%，大大低於我們的預期。這主要是由約 1,140 萬美元或每股 0.08 美元的離散稅收優惠推動的。

Turning to the full year, 2019 reported net income was $311 million or $2.20 per diluted share compared to reported net income of $296.6 million or $1.98 per diluted share for the full year 2018. 2019 adjusted diluted EPS was $2.82 per adjusted diluted share, which includes expenses of approximately $19 million or $0.10 per share related to the China growth program as well as approximately $0.34 per share headwind from foreign currency. On a constant currency basis, adjusted earnings per share grew approximately 10% compared to 2018. Our full year adjusted tax rate of 25.3% benefited by $5.8 million or $0.04 per share due to excess tax benefits from the exercise of equity grants.

談到全年，2019 年報告的淨利潤為 3.11 億美元，即稀釋後每股收益 2.20 美元，而 2018 年全年報告的淨利潤為 2.966 億美元，即稀釋後每股收益 1.98 美元。2019 年調整後攤薄每股收益為調整後攤薄每股 2.82 美元，其中包括與中國成長計畫相關的約 1,900 萬美元或每股 0.10 美元的費用，以及每股約 0.34 美元的外幣逆風。以固定匯率計算，調整後每股盈餘較 2018 年成長約 10%。由於行使股權授予帶來的超額稅收優惠，我們全年調整後稅率為 25.3%，因此受益於 580 萬美元或每股 0.04 美元。

As you just heard from John, we cannot reasonably estimate the impact of the coronavirus on our 2020 consolidated financials at this time. Had it not been for coronavirus, we would have largely reaffirmed our prior guidance for the full year 2020. However, given the material impact that the coronavirus could have on our consolidated financials, we will update our 2020 guidance once we have a better understanding and can reasonably estimate the impact.

正如您剛從約翰那裡聽到的那樣，我們目前無法合理估計冠狀病毒對我們 2020 年合併財務狀況的影響。如果沒有冠狀病毒，我們基本上會重申先前對 2020 年全年的指導。然而，考慮到冠狀病毒可能對我們的綜合財務狀況產生重大影響，一旦我們更好地了解並能夠合理估計影響，我們將更新 2020 年指引。

Related to the balance sheet, during the fourth quarter, we announced an amendment to our existing $743 million Term Loan B credit facility that reduces the interest rate by 50 basis points. Excluding the cost of the transaction and future principal payments, the lower interest rate will save the company approximately $20 million in interest costs through maturity.

與資產負債表相關，第四季度，我們宣布對現有的 7.43 億美元定期貸款 B 信貸安排進行修訂，將利率降低 50 個基點。不包括交易成本和未來本金支付，較低的利率將為公司節省約2,000萬美元的到期利息成本。

Continuing to improve our capital structure remains a key focus as part of our overall strategy to deliver value to our shareholders. We currently have $839 million of cash on hand and $1.5 billion in our share repurchase authorization. This concludes our prepared remarks. Operator, please open up the line for questions.

繼續改善我們的資本結構仍然是我們為股東創造價值的整體策略的一部分的重點。目前我們手上有 8.39 億美元的現金，以及 15 億美元的股票回購授權。我們準備好的演講到此結束。接線員，請開通提問線。

(Operator Instructions) Our first question is the line of Doug Lane from Lane Research.

（操作員說明）我們的第一個問題是來自 Lane Research 的 Doug Lane 的路線。

Talking about the FCPA, I know you didn't mention it but I noticed in your commentary in the 10-K that you put a dollar figure in there of $40 million. How should we read that? Does that show movement on the FCPA front? And what about timing of ultimate settlement?

談到 FCPA，我知道您沒有提及，但我注意到您在 10-K 的評論中提到了 4000 萬美元的數字。我們應該怎樣讀呢？這是否表明 FCPA 方面有所進展？最終結算的時間又如何呢？

Doug, thanks for the question. So the accrual that you see in the FCPA disclosure doesn't indicate a time line. It doesn't indicate where we might ultimately land. It is simply an artifact of the discussions that have continued to progress. It triggers accounting principles in which we have to record that accrued liability. And so we'll continue to have our discussions with the SEC and DOJ. All of the outcomes, please look at the FCPA disclosure as we've outlined it, to see what the possible outcomes may be, but the accrual doesn't necessarily imply any specific outcome at this point.

道格，謝謝你的提問。因此，您在 FCPA 揭露中看到的應計費用並不表示時間軸。它並不表明我們最終可能降落在哪裡。它只是持續進展的討論的產物。它觸發了我們必須記錄應計負債的會計原則。因此，我們將繼續與 SEC 和 DOJ 進行討論。所有結果，請查看我們概述的 FCPA 揭露，以了解可能的結果，但應計並不一定意味著此時的任何具體結果。

Okay. And shifting to the financial statements here. One, I just wondered the -- I noticed the SG&A as a percent of sales was up 140 basis points from the third quarter. And I know it can be lumpy from quarter-to-quarter, but I just wondered why there was the big increase in the fourth quarter as a percent of sales on a sales number that was pretty good, probably at the upper end of expectations versus the third quarter.

好的。現在轉向這裡的財務報表。第一，我只是想知道——我注意到 SG&A 佔銷售額的百分比比第三季上升了 140 個基點。我知道每季的情況可能會很不穩定，但我只是想知道為什麼第四季的銷售額百分比大幅成長，銷售額相當不錯，可能處於預期的上限。第三季。

So Doug, again, you're talking about the Q4 specific SG&A as a percent of sales?

道格，您再次談論的是第四季度特定的 SG&A 佔銷售額的百分比？

Yes.

是的。

Yes, if you look at Q4 '19 versus Q4 '18, there was some year-end accruals. One went in one direction last year. The other went in the other direction this year so it created about a $19 million difference in year-end accruals. It doesn't really impact the full year SG&A as a percentage of net sales, but it does impact the quarter when you're looking at it year-over-year, so there's nothing fundamental or systemic going on in that number. It's really more just a timing issue. And so if you look at how that kind of evens out for the year, you're going to see SG&A as a percentage of sales effectively flat '19 over '18.

是的，如果你比較一下 19 年第四季與 18 年第四季度，你會發現有一些年終應計專案。去年有一個朝一個方向發展。另一個今年則走向了另一個方向，因此在年終應計項目中產生了約 1,900 萬美元的差異。它並沒有真正影響全年的銷售、管理及行政費用（SG&A）佔淨銷售額的百分比，但當你逐年查看時，它確實會影響本季度，因此這個數字沒有任何基本或系統性的變化。這實際上只是一個時間問題。因此，如果你看看這一年的情況如何，你會發現 SG&A 佔銷售額的百分比實際上與 19 年和 18 年持平。

Okay, that's helpful. And just one last thing, with the big move in the tax rate and you're saying that you largely would have reaffirmed your outlook for 2020, does that include the tax rate outlook for 2020 so that that fourth quarter was really a one-off and really didn't change your structural tax situation looking into 2020?

好的，這很有幫助。最後一件事，隨著稅率的大幅變動，你說你基本上會重申你對 2020 年的展望，這是否包括 2020 年的稅率展望，所以第四季度確實是一次性的展望2020年，您的結構性稅務狀況真的沒有改變嗎？

Yes, that's correct. It is -- it doesn't really affect our structural tax rate. What you saw in Q4 was a number of onetime items. They just -- some of them happened to be very large and hit in Q4. But as you know, we typically, every year, have a basket of onetime items. It just happened to be particularly large this year and it happened to be particularly large in Q4. That's what really impacted the rate. For going forward, and again, as you noted, had we reaffirmed guidance, our tax rate for 2020 would have largely remained unchanged.

對，那是正確的。它並沒有真正影響我們的結構性稅率。您在第四季度看到的是許多一次性項目。他們只是 - 其中一些碰巧非常大並在第四季度受到打擊。但如您所知，我們通常每年都會有一籃一次性物品。只是今年恰好特別大，並且恰好在第四季度特別大。這才是真正影響利率的因素。展望未來，正如您所指出的，如果我們重申指導意見，我們 2020 年的稅率將基本保持不變。

And our next question is from line of Steph Wissink from Jefferies.

我們的下一個問題來自 Jefferies 的 Steph Wissink。

I just had a follow-up question on Doug's question regarding the FCPA. Can you just remind us what the accounting process is or the rules related to the accrual? Is it some sort of reasonable likelihood or ability to estimate? Like what trips or triggers the ability to include that level of disclosure in your filing?

我剛剛對 Doug 提出的有關 FCPA 的問題有一個後續問題。您能否提醒我們會計流程是什麼或與應計費用相關的規則是什麼？它是某種合理的可能性或估計能力嗎？例如什麼會觸發或觸發在您的文件中包含這種程度的揭露的能力？

Steph, thanks for the question. Yes, unfortunately, when you go through the accounting steps to arrive at the accrual, it's really based on the facts and circumstances of the discussion of the case. So I can't really disclose what those -- I can't really disclose what conversations are actually taking place that caused those accounting rules to trip. So unfortunately, really what we have in the disclosure is all we can really say and we're just following U.S. GAAP principles here.

史蒂芬，謝謝你的提問。是的，不幸的是，當您透過會計步驟得出應計費用時，它實際上是基於案例討論的事實和情況。所以我不能真正透露那些——我不能真正透露到底發生了什麼對話導致了這些會計規則的失敗。不幸的是，我們在揭露中所掌握的內容就是我們真正能說的，我們只是遵循美國公認會計準則原則。

Okay, fair enough. And then 2 bigger picture questions on technology and new product initiatives. I know this is something that's been kind of underlying some of the headlines. But if you can just give us an update on some of the technology platform rollouts across your major regions, and then some of the new product initiatives we should expect from here over the next 12 months or so, particularly as we look at some of your growth markets of the world.

好吧，很公平。然後是關於技術和新產品計劃的 2 個宏觀問題。我知道這是一些頭條新聞背後的原因。但是，如果您能為我們介紹一下您的主要地區推出的一些技術平台的最新情況，以及我們預計在未來 12 個月左右的時間裡推出的一些新產品計劃，特別是當我們考慮您的一些世界的成長市場。

Yes. So I mean one of the biggest technology initiatives we put in place coming out of the 100-day campaign was some of the distributor-to-customer technology in China, specifically. And so that was a significant investment we made in 2019 or began to make in 2019. It's still ongoing, that project is very much in the middle of its rollout of different features and capabilities. But what we're seeing is -- and particularly in light of the coronavirus situation, we're seeing our distributors adopt that technology and really figuring out another way to go to market, which has been helpful. It's all very much still in its infancy, but I think the progress of that technology implementation is really encouraging, and we're going to look to continue to update on that progress.

是的。所以我的意思是，我們在 100 天的活動中實施的最大的技術舉措之一是中國的一些分銷商對客戶的技術。因此，這是我們在 2019 年做出或在 2019 年開始進行的重大投資。它仍在進行中，該項目正處於推出不同特性和功能的過程中。但我們看到的是——特別是考慮到冠狀病毒的情況，我們看到我們的分銷商採用了這項技術，並真正找到了另一種進入市場的方式，這很有幫助。這一切仍處於起步階段，但我認為該技術實施的進展確實令人鼓舞，我們將繼續更新這項進展。

I think generally, for the rest of the world, in the U.S. in 2019 we put in a productivity tool for distributors and nutrition clubs. And then more broadly, just rolling out our toolkit, what I would call as our core technology toolkit, which is available in a lot of our larger markets but really rolling that into our Tier 2 and Tier 3 markets so that every distributor in every country has a core set of tools. And that continues to roll out and it will continue to roll out in 2020. So just overall, I think you'll -- that will contribute to just productivity and making sure distributors have a good way to go about doing their business.

我認為，總的來說，對於世界其他地區來說，2019 年在美國，我們為經銷商和營養俱樂部推出了生產力工具。然後更廣泛地說，只是推出我們的工具包，我稱之為我們的核心技術工具包，它在我們的許多較大市場中都可用，但實際上將其推廣到我們的二級和三級市場，以便每個國家的每個分銷商擁有一套核心工具。該計劃仍在繼續推出，並將在 2020 年繼續推出。因此，總的來說，我認為這將有助於提高生產力，並確保分銷商有一個好的方式來開展他們的業務。

What was -- and then you mentioned something on the product standpoint.

然後你提到了產品角度的一些內容。

Yes, just expectations or messaging you want us to hear regarding product innovation and product initiatives above and beyond your core assortment.

是的，只是您希望我們聽到的關於超越您的核心產品系列的產品創新和產品計劃的期望或消息。

Right. So the product initiatives again, we're really focused on choice. We're focused on products, whether that be in sports nutrition, targeted nutrition or even weight management, in the weight management category, where it's choice around clean label or a choice around different distributors and how they react with their customers and their local market in the way that they want to speak. It's about choice and giving that option. So some of these products might be door openers to get into our core products or some of it might be giving offerings so that our distributors have a way to talk to a customer that they haven't been able to. So yes. And maybe, John...

正確的。因此，在產品舉措方面，我們真正關注的是選擇。我們專注於產品，無論是運動營養、針對性營養，甚至是體重管理，在體重管理類別中，圍繞清潔標籤進行選擇，或者圍繞不同經銷商進行選擇，以及他們對客戶和當地市場的反應以他們想要的方式說話。這是關於選擇並給予該選擇。因此，其中一些產品可能是進入我們核心產品的大門，或者其中一些可能是提供產品，以便我們的分銷商有一種方式與客戶交談，這是他們無法做到的。所以是的。也許，約翰...

Yes, let me just add into actually both of those. So you asked, obviously, 2 of the core -- you asked questions about 2 of our core strategies, right? So technology, of course, it's about creating scale for our distributors to do more without losing the connection they have with customers, and Alex talked about a lot of those key initiatives.

是的，讓我將這兩者都加進去。顯然，你問了兩個核心——你問了關於我們兩個核心策略的問題，對嗎？當然，科技是為了讓我們的經銷商擴大規模，在不失去與客戶的聯繫的情況下做更多的事情，亞歷克斯談到了很多這樣的關鍵舉措。

On the product side, Alex gave you a lot of examples of things we're doing. I think another one to keep in mind that's really going to drive an acceleration of launches is the localization of product and the pushing out of the resources into the regions to develop the products that their particular market needs, whether it's flavors that're unique to a particular region or health and wellness products that are unique to a particular region. So it's less of a global approach than it's been in the past and more of a local approach.

在產品方面，亞歷克斯給了你很多我們正在做的事情的例子。我認為另一個要記住的真正會推動產品上市加速的因素是產品的本地化，以及將資源投入到這些地區來開發其特定市場需要的產品，無論是獨特的口味。特定地區或特定地區獨有的健康和保健產品。因此，與過去相比，它不再是一種全球性的方法，而是一種在地化的方法。

And our next question is from line of William Reuter from Bank of America.

我們的下一個問題來自美國銀行的 William Reuter。

The first is just a follow up on that last question about localization of products. Where are you in that process now in terms of trying to get product that is unique for a region versus products that are generally available across all your regions?

第一個問題只是關於產品本地化的最後一個問題的後續。就嘗試獲得某個地區獨有的產品與所有地區普遍提供的產品而言，您現在處於流程的哪個階段？

So it's a process. In some regions, we're further along than others. I can tell you that in China, for example, it's done, all right? China has its own R&D center now, very localized. In other regions, they are developing the resources. And certainly working with our local distributors, we are, I think, far along in the journey. I think a little bit more on the resource side needs to be done, but I think culturally within the product development group and the teamwork done with the distributors, we are out there, so it's just a matter of getting the right resources.

所以這是一個過程。在某些地區，我們比其他地區走得更遠。我可以告訴你，比如說在中國，已經做到了，好嗎？中國現在有自己的研發中心，非常本土化。在其他地區，他們正在開發資源。當然，我認為，與我們當地的經銷商合作，我們已經在這條路上走得很遠了。我認為在資源方面需要做更多的工作，但我認為在產品開發團隊的文化以及與經銷商完成的團隊合作中，我們在那裡，所以這只是獲得正確資源的問題。

Okay, that's very helpful. And then I understand that it would be impossible to try and gauge the impact of coronavirus on this year. But I guess, are there certain regions where you do have clubs that continue to operate? Do you have any even thoughts on when you may have some clubs that are beginning to open again?

好的，這非常有幫助。然後我明白，嘗試評估冠狀病毒對今年的影響是不可能的。但我想，在某些地區是否有俱樂部繼續運作？您對某些俱樂部何時重新開業有什麼想法嗎？

Well, look, it's tough to know. A lot of the clubs aren't operating right now, just like most of the restaurants aren't, because people aren't physically going into locations like that. And so those distributors have moved over to the online platform. We've seen -- actually, we're comping a pretty easy scenario with the 100-day campaign last year. And we are seeing activity levels actually higher than a year ago and actually new sales leaders higher than a year ago, but don't really know where this will end up because the situation is not over. And so we don't have all the dominos to fall exactly what this -- how this plays out over the medium term.

好吧，聽著，很難知道。許多俱樂部現在都沒有營業，就像大多數餐廳沒有營業一樣，因為人們不會親自去那樣的地方。因此，這些經銷商已經轉移到線上平台。我們已經看到，實際上，我們正​​在將一個非常簡單的場景與去年的 100 天活動進行比較。我們看到活動水平實際上高於一年前，新的銷售領導者實際上也高於一年前，但並沒有真正知道這最終會如何，因為情況還沒有結束。因此，我們沒有所有的骨牌來準確地說明這一點——從中期來看，這將如何發揮作用。

But with respect to clubs, it's somewhere -- maybe it's 80% of our clubs, probably at somewhere around there right now aren't open. So there are some clubs that are performing okay, but most of them right now, customers just not coming in, they're not open.

但就俱樂部而言，它在某個地方——也許我們 80% 的俱樂部，可能在附近的某個地方，現在還沒有開放。所以有些俱樂部表現還不錯，但大多數現在顧客都沒有進來，他們沒有營業。

That makes sense. And then lastly, in your prepared remarks, you used the word improve around your capital structure. I guess when you think about improving it, what does that mean? I think your leverage target has been 3x, so I would assume that might mean something to increase your leverage but there's obviously a lot of uncertainty, so I don't know if the coronavirus changes that thought.

這就說得通了。最後，在您準備好的發言中，您在資本結構方面使用了「改善」這個詞。我想當你考慮改進它時，這意味著什麼？我認為你的槓桿目標是 3 倍，所以我認為這可能意味著增加你的槓桿，但顯然存在著許多不確定性，所以我不知道冠狀病毒是否會改變這個想法。

No, the coronavirus doesn't impact our capital structure thoughts. Our target gross leverage is around 3x. We do have capacity and we continue to monitor the capital markets in concert with just overall being -- having an efficient capital structure. So you could envision, sometime during 2020, we may be out in the market looking to fill that gap to get our target leverage back up or get our leverage up to that target level. So that's certainly one of the reasonable expectations, but obviously, that's an execution question and we just have to make sure that we're doing it at the right time.

不，冠狀病毒不會影響我們的資本結構想法。我們的目標總槓桿率約為 3 倍。我們確實有能力，我們將繼續監控資本市場，並與整體保持一致——擁有高效的資本結構。因此，您可以想像，在 2020 年的某個時候，我們可能會在市場上尋求填補這一缺口，以使我們的目標槓桿率回升或將我們的槓桿率提高到該目標水平。所以這當然是合理的期望之一，但顯然，這是一個執行問題，我們只需要確保我們在正確的時間做這件事。

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

（操作員說明）我們的下一個問題是巴克萊銀行的 Hale Holden 線。

I had a couple of quick ones. Are you still manufacturing in your facility in China and/or would we expect any potential shortages from that facility to the broader Asian region?

我有幾個快速的。你們是否仍在中國的工廠進行生產和/或我們預計該工廠到更廣泛的亞洲地區會出現任何潛在的短缺嗎？

Yes. So we are now manufacturing. I mean we were down for a couple of weeks during the extended China New Year's. I think as of the 14th, as of late last week, our factories opened. Not every employee is in but certainly enough to keep production going, so we're in a pretty good spot there. That includes the 2 local manufacturing facilities in China plus the extraction facility in China.

是的。所以我們現在正在製造。我的意思是，在延長的農曆新年期間，我們有幾週的時間都處於低迷狀態。我認為截至 14 日，截至上週晚些時候，我們的工廠已經開業。並不是每個員工都在，但肯定足以維持生產，所以我們在這方面處於非常好的位置。其中包括中國的 2 個本地製造工廠以及中國的提取工廠。

Great. And then you had also mentioned in the prepared remarks the potential for geographic weakness, I guess, beyond China. Is that something you're seeing now or is that just a level of caution?

偉大的。然後你在準備好的發言中還提到了地理弱點的潛力，我猜，除了中國之外。這是您現在看到的情況還是只是出於一定程度的謹慎？

Well, I mean, we're certainly postponing some meetings in some areas of Asia. Sometimes, you've got to make those calls early and so in abundance of caution, there are meetings being canceled. Cancel is the wrong word, they're being postponed. They're just being pushed out to later in the year. And that could have an impact but it might not have an impact. So given that we're not sure yet how this plays out, we're being cautious in our guidance.

嗯，我的意思是，我們肯定會推遲在亞洲某些地區舉行的一些會議。有時，您必須提前打電話，因此出於謹慎考慮，有些會議被取消。「取消」這個詞用錯了，他們正在被推遲。他們只是被推遲到今年晚些時候。這可能會產生影響，但也可能不會產生影響。因此，鑑於我們還不確定情況如何，我們對指導持謹慎態度。

Okay. And then my last question was I was wondering if in the quarter Mexico turned out to your plan, and any thoughts on how that market is doing?

好的。然後我的最後一個問題是，我想知道墨西哥在本季是否符合您的計劃，以及對該市場的表現有何想法？

So it turned out pretty close to our expectations. It had a slight improvement in trends versus Q3. Net sales on a local currency basis, were down 1.5%, on a reported basis is actually off 1.7%, so it's tracking with expectation.

所以結果非常接近我們的預期。與第三季相比，趨勢略有改善。以當地貨幣計算的淨銷售額下降了 1.5%，據報道實際下降了 1.7%，因此符合預期。

As we said last quarter, the objective now in Mexico to get the market back on track is more recruiting. That's where the weakness has been for about a year now, and that's where the focus needs to be to recover. But nothing's materially different than we had thought a quarter ago.

正如我們上季度所說，墨西哥目前讓市場重回正軌的目標是增加招募。這就是大約一年來的弱點所在，也是需要重點恢復的地方。但與我們四分之一前的想像沒有什麼本質上的不同。

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

此時，我要表明我們沒有其他問題，因此我想將電話轉回給邁克爾·約翰遜，讓其結束語。

Thank you very much. When I began my Herbalife journey in 2003, I had a wonderful mentor who reminded me that few get a platform like we have at Herbalife. I then -- and today, see Herbalife through 4 buckets: our product, our business opportunity, our brand and our image. In March, we celebrate 40 years of enhancing and enlarging each of those buckets. And this February, we celebrated and celebrate our founder, Mark Hughes. Mark had a very simple yet incredible vision: Change in nutritional habits of the world and give people an opportunity to earn what they're worth. That vision has grown into a multibillion international company that is fueled by the passions of distributors and employees, who are proud to be Team Herbalife.

非常感謝。當我於 2003 年開始我的康寶萊之旅時，我有一位出色的導師，他提醒我很少有人能像我們康寶萊一樣擁有這樣的平台。從那時到今天，我從四個方面看待康寶萊：我們的產品、我們的商業機會、我們的品牌和我們的形象。三月，我們慶祝每個桶的增強和擴大 40 週年。今年二月，我們慶祝並慶祝我們的創始人馬克休斯。馬克有一個非常簡單但令人難以置信的願景：改變世界的營養習慣，讓人們有機會賺取他們應得的東西。這個願景已發展成為一家價值數十億美元的國際公司，在經銷商和員工的熱情推動下，他們為成為康寶萊團隊而感到自豪。

Let me close by expressing my gratitude. Following Mark Hughes in leading this company for the last 17 years has been the ride of a lifetime. And the success we've achieved together has been really nothing short of exhilarating. I want to thank our distributor leaders, our distributors and our employees, all of whom I adore, for the support and encouragement you provided me along the way. And to our Board of Directors and long-term shareholders, thank you for your faith and trust, for hanging in there in the good times and in the tough times.

最後讓我表達我的謝意。在過去 17 年裡，跟隨 Mark Hughes 領導這家公司是一生難忘的旅程。我們共同取得的成功確實令人振奮。我要感謝我敬佩的經銷商領導、經銷商和員工，感謝你們一路以來給予我的支持和鼓勵。感謝我們的董事會和長期股東的信任和信任，感謝你們在順境和逆境中堅持不懈。

During the past 17 years, we've generated substantial cash flow and returned approximately $5.1 billion of capital to our shareholders, and we continue to keep you in mind every day as we continue to grow our business together. I now take my place alongside shareholders like you on this call as an enthusiastic, long-term investor, knowing that the best of Herbalife is ahead and we are just getting started. So thanks for all your support through all the years.

在過去 17 年裡，我們產生了大量現金流，並向股東返還了約 51 億美元的資本，在我們繼續共同發展業務的過程中，我們每天都會牢記您的心意。現在，我作為一位熱情的長期投資者，與像你們這樣的股東一起參加這次電話會議，我知道康寶萊最好的未來就在前方，而我們才剛剛開始。感謝大家多年來的支持。

Ladies and gentlemen, thank you for joining us for Herbalife's Fourth Quarter 2019 Earnings Conference Call. You may now disconnect.

女士們、先生們，感謝您參加康寶萊 2019 年第四季財報電話會議。您現在可以斷開連線。