MINISO Group Holding Ltd (MNSO) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to MINISO's earnings conference call for the first half of 2024. (Operator Instructions) After the management's prepared remarks, we will conduct a question-and-answer section. (Operator Instructions) And be kindly noted that this event is being recorded.

We have announced our June quarter and interim financial results earlier today. An earnings release is now available on our Investor Relations website at ir.miniso.com. Joining us today are our Founder and CEO, Mr. Jack Ye; and our CFO, Mr. Eason Zhang.

Before we continue, I would like to refer you to the Safe Harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-IFRS financial measures today, which we have explained and reconciled to the most comparable measures reported under the International Financial Reporting Standard in the company's earnings press release and filings with the US SEC and Hong Kong Stock Exchange.

The currency unit is Chinese yuan, unlike that advice stated. In addition, we have prepared a PowerPoint presentation for today's call, which contains financial and operational information. If you are using Zoom meetings, you should be seeing it right now. You can also revisit it on our IR website later.

Now, I'd like to hand over the conference over to Mr. Ye. And Ms. Allis Chen from MINISO IR team will translate for Mr. Ye. Please go ahead, sir.

(spoken in foreign language)

(interpreted)

Hello, everyone. Welcome to MINISO Group's earnings conference call for the first half of 2024. During the reporting period, our global market footprints continued to expand. We achieved a milestone of 7,000 stores globally, which is less than a year since we surpassed 6,000 stores.

(spoken in foreign language)

(interpreted) In the first half of 2024, the group's net store network have seen 502 net new units with both MINISO overseas and TOP TOY experiencing their fastest store openings period in history, adding 266 and 47 new units on a net basis on the first half of the year, respectively.

These two business segments also making double-digit growth in same-store sales, continuing to (inaudible) and act as growth engines in the world in the group. MINISO mainland China achieved steady growth by adding 189 net new stores, including a best-in-class same-store sales performance of 98.3% of previous year's level. As a result, the group's revenue for the first half increased by 25% to RMB7.76 billion, including a 7% same-store sales growth and a 90% growth in average store count.

(spoken in foreign language)

(interpreted) Product capability, it's our core competitive strengths. We continue to focus on IP and strategic categories, increasing gross margin from 39.6% in the first half last year to 43.7% respectively, adding 4.1 percentage-points. General probability (technical difficulty) is crucial for us to stand out in future capital competitions, especially in overseas markets, especially in direct operated markets, and especially in the United States.

The pace of store expansion in the United States have exceeded expectation continuously with double store counts and a double-digit same-store sales growth. Even though we are still at investment stage in overseas markets, under our effective cost control measures, adjusted net profit in the first half of 2024 still increased [80%] year-over-year. Excluding net foreign exchange impacts, adjusted net profit increased 26% year-over-year, slightly faster than the growth of revenue.

(spoken in foreign language)

(interpreted) On our Investor Day earlier this year, I shared our mission, vision, long-term strategy, and implementing tasks in the next five years. Our mission is life is for fun and our vision to become the world's number one IP design retail group.

To relay this vision, we adhere to affordability, globalization, and product innovation IP designs. We have established three targets: 900 to 1,100 net new stores in each year from 2024 to 2028, no less than 20% CAGR for revenue and a higher CAGR for EPS from 2024 to 2028; and having no less than 50% of IP product sales contribution by the end of 2028.

(spoken in foreign language)

(interpreted) In the first half of 2024, despite evolving global markets, our business model demonstrates strong resilience, and our financial performance met our earlier expectations. Going forward, all of our businesses will make firm progress in accordance to our five-year strategic plan.

(spoken in foreign language)

(interpreted) Now, I will walk you through 2024 first half business update for our three major segments. MINISO mainland China, MINISO overseas, and TOP TOY.

(spoken in foreign language)

(interpreted) Firstly, MINISO mainland China continue to achieve a robust and resilient same-store sales based on high-quality channel expansions, with a 60% year-over-year increase in offline GMV. According to National Bureau of Statistics, the growth rate of domestic retail sales of goods was 4.1% during the same period last year.

In particular, same-store sales were at 98.3%, up prior year's levels, with a 0.9% increase in ticket size and a 2.5% decrease in traffic. Meanwhile, purchase conversion rates have remained stable. If including the Q2 sales of (inaudible) products in our pop-up stores, same-store sales growth for H1 in domestic markets would have a positive growth year-over-year, which would be an impressive performance in domestic online retail industry.

Online-to-online models also developed rapidly, with a nearly 80% increase in GMV for the first half years. Entering the third quarter, our year to date domestic sales have continued to maintain a double-digit growth. We expect MINISO mainland China will continue to grow by 10% to 15%, in line with our earlier expectation.

(spoken in foreign language)

(interpreted) The expansion of our store network is healthy. In the first half of 2024, we had 189 net new stores, maintaining a steady pace toward our annual target of 350 to 450 net new stores. We're pushing up new stores in the first and second tier cities with close to 60%.

Meanwhile, we're thrilled to see that in the first half years, the same-store recovery of higher-tier cities, especially first-tier cities, nearly a 100% of the previous year's level, which recovered better than the lower-tier cities. On one hand, this indicates that MINISO still has sufficient space for store openings in higher-tier cities.

On the other hand, this also indicated that our IP strategies have been notably effective in higher-tier cities, significantly driving performance of same-store sales. There are a total of nearly 2,000 city and towns in China, lower-tier area, and MINISO have entered over a 1,000 of them, indicating that there is still a significant untapped market for future penetration.

Our retail partner structure is also very stable. In recent four years, store concentration rate for top 50 retail partners remained at 50%, and more than 600 of them have been in operation with MINISO for more than three years. The development of MINISO is inseparable from the support of our partners, and we will continue on a winning cooperation for more and better MINISO stores.

(spoken in foreign language)

(interpreted) Next, let's discuss the MINISO overseas business update.

(spoken in foreign language)

(interpreted) In the first half of 2024, revenue from overseas exceed RMB2.7 billion, a year-over-year increase of 43%. In particular, revenue from the direct operation market increased by 70% year-over-year on a comparable basis. The direct operation market accounting for 56% of overseas revenue in the first half of this year, surpassing the distributor's market.

(spoken in foreign language)

(interpreted) It's certainly, the overseas markets added a net of 256 stores in the first half year, which marked the fastest store opening phase for the first half of the year since MINISO's globalization nine years ago, boosting our confidence in our bulk of 550 to 650 net new stores for the full year. Amongst these net new stores, the number of directly operated stores has been set at a record of 105, with more than 50% of them are from United States.

Last week, we celebrated the opening of the 200th MINISO store at the Santa Monica Beach in California, turning MINISO as the Asia's consuming brand with the largest store network in the United States. And we have entered 40 states in the United States, along with the rapid growth in the numbers of the US stores. Same-store sales have also achieved healthy growth in the first half of 2024.

Going forward, we will pay more attention to our store operation management, aiming to achieve sustainable same-store sales growth through product localization, operations localization and consumer localization.

(spoken in foreign language)

(interpreted) The IP strategy has been further deepened and implemented in 2024. In the first half years, IP product sales contribution exceeded 30%. In our domestic market, IP products contributions have been further increased nearly to 30%, with a nearly 40% year-over-year growth. In our overseas markets, IP products contributions have been increased to nearly 50% and the revenues have been doubled.

We offer IP strategy as a core of the brand and continuously explore innovative IP corporations. To summarize the three use of IP operation in the first half of 2024: they're new models, new store types, and new series.

(spoken in foreign language)

(interpreted) Firstly, in the first half of 2024, the [GMC] of the IP themes models increased by about 400% year over year, contributing for more than 30% of the IP product sales compared to less than 10% contribution in the same period last year. Secondly, our new store for Max the IP pop up stores were launched in the first half years. They providing consumers with running shocking experience and have become a new channel for it for themselves.

Lastly, the upgraded and developmental product series of processing might event people, long promotion heads, explain the IP operation, service cycles and create more sales opportunities to a greater extent.

(spoken in foreign language)

(interpreted) In overseas markets, we replicated our IP operation strategies and created movements for the popular site BTE 21, continuously setting new records for exercising multiple overseas markets. The great success of such IP serious operations not only brought us better, but ourselves and stronger explosive, but more importantly, allowed our global commercial rental partners to fully perceive the potentials of IP consumption and the brand orders.

We are grateful for the support from our partners during these events. I believe that in the operation with them in the future, there will be opportunities to create more marketing highlights and self-scenarios.

(spoken in foreign language)

(interpreted) Thanks to the effective implementation of our item strategies, as of June 30, the numbers of registered members administered worldwide exceeded 100 million, gradually improving global membership system will help convert more IP fans into our brand members and vice versa during business growth of MINISO in the futures.

(spoken in foreign language)

(interpreted) The superstore shirt is also steadily advancing globally, taking advantage of the Olympics momentum to be opened global clothing store at the most famous Champs-Elysees avenue in Paris. The brand promotions of cheering for Chinese Olympic athletes attract countless consumers from all over the world to get to know more about the products and culture from MINISO beyond from China via MINISO stores.

Missiles sent over 300 stores located in Indonesia as of June 30, and the largest MINISO flagship store in the world, covering an area of 3000 square meters, will also be unveiled in Jakarta, Indonesia tomorrow. Be helped by these global social stores are not just shopping destination but also magical paradise and wonderful that captivated global consumer and leave them with a sense of wonder allows everyone to be treasure hunters in our stores. Believe that happening. We are committed to creating this force for every consumer who enters MINISO's stores.

(spoken in foreign language)

(interpreted) Meanwhile, we are also actively deploying the overseas supply chain through the efforts in the first half years, most difficult categories discussed in the United States markets can be fully replaced by the supply chains themselves, Asia, Japan, South Korea and the United States operating a highly aged supply chain is a must have global companies to publicly evolving and challenging global markets.

(spoken in foreign language)

(interpreted) Let's move on to TOP TOY.

(spoken in foreign language)

(interpreted) In the first half of 2024, top plus revenue increased by 38% year over year, including a high quality single celled of 40% coupled with a net increase of 47 TOP TOY stores in the first half of 2024.

(spoken in foreign language)

(interpreted) TOP TOY self-developed products continue to have breakthroughs, with a proportion of self-developed products exceeding 35% in the first half years. The average merchandise gross profit margin of self-developed products is about 60%, which undoubtedly plays positive roles in improving the overall gross profit margin. TOP TOY has been profitable for three consecutive quarters, reconfirming its shipping point.

(spoken in foreign language)

(interpreted) As for the product itself, the dollar (inaudible) which series launched in Q2 have topped the stars of all categories in TOP TOY this year. They recently launched some final series, having doubts 100,000 units of cells leading just 50 days in launch, achieving over 10 million cells in the future will continue to increase the portions of self-development products and further optimize the products profit margin.

(spoken in foreign language)

(interpreted) In 2024, while focusing our business, we also laid more emphasis on fostering our corporate culture, I repeatedly emphasize, with right strategy and dynamic teams internally. Looking back at 11-years development history of MINISO, talent is the most solid strength for our enterprise development.

As for June 30, the numbers of our global employees have exceeded 5,200. Over 2,800 of which are from the overseas. In March we launched the marriage and the quality work planned with over RMB10 million initial fundings. On Qixi festival, we held the very first MINISO wedding ceremony of 17 couples, spending our sincere blessing.

(interpreted) (spoken in foreign language)

I have always emphasized the values of passion and persistence within the world in our pursuit of success, both in life and in our career. In addition to the correct values and sufficient functional ability, while we also need strong passions and persistence. The passionate assistants are also the pool of minister employees to create industrial reports and to promote enterprise development continuously.

(spoken in foreign language)

(interpreted) In the huge potential for development and profitability in retail industry. We can lead ourselves to launching (inaudible) to seeking truth from facts to operating with big, big and strong ambitions. In self-host, supervise, playful, appealing and useful products to our global consumers in the future, continuously offering competitive career development opportunities to our employees and bring long terms and profitable returns to our shareholders.

(spoken in foreign language)

(interpreted) That shall concludes my remarks. Next, please allow me to introduce the company's financial situation in the first half of the year.

Okay. Thank you, Jack, and welcome, everyone, for joining us today.

I'm pleased to see that our business have made firm progress in accordance with the five-year strategic roadmap. And our performance has met the expectations at the beginning of the year. Our business model has demonstrated great resilience despite the softening of massive consumption market.

In overseas market, where we doubled our directly operated store network, we managed to balance growth and margin, and we can surely do better in the second half because the initiatives we adopted recently to improve operational efficiency has begun to pay off. Although the economic data remains mixed, we see structural opportunities in IP retailing and globalization. We have full confidence to deliver our new beginning targets.

Now, let me walk you through our financials for first half. Please note that all numbers are in renminbi, unless otherwise stated. And I will also refer to some non-IFRS measures, which have excluded share-based compensation expenses or SBC expenses.

So, revenue saw a robust increase of 25% on last year's high base and at high end of our expectation. We are thrilled to see those drivers of revenue performed very well in the first half. In terms of store network, we've delivered record net addition in overseas and TOP TOY, and we expect acceleration in the second half in mainland China.

And in mainland China, we are on track to deliver our guidance of 350 to 450 net new units, while making necessary training to our existing store formats and franchisee structure. When it comes to same-store sales, we've delivered a 7% year-on-year growth at group levels. So, we are particularly encouraged by our achievements in China mainland.

While SSG was 98.3% from previous year level, outperforming domestic retail sector, our product team kept introducing best-selling SKUs, as they have been doing during the past 11 years. Our operation team has launched several initiatives to make sure MINISO's same-store sales is best in class. For example, our O2O business or instant retail increased by nearly 80% in the first half because our 4,115 stores are easily accessible to our customers. And we have right products and a comprehensive set of fast and convenient digital fulfillment solutions.

In overseas, same-store sales growth was 16%. We are still at very early stage to uncover sales potentials for overseas stores. It will grow very fast, but inevitably fluctuates. The mission critical here is localized products and operations. Although MINISO is a pioneer in Chinese consuming brands going overseas, our attempts at retail localization are nearly at the beginning stage.

In addition, TOP TOY same-store sales growth was remarkably at 14% in the first half. Next, let me talk about channel mix. Overseas DTC market is now 20% of our total revenue compared to 14% in the first half last year. The revenue contribution from MINISO training offline stores decreased by 4 percentage points. This shift in revenue mix is one of the reasons why we had another record high GP margin, and it also changed operating profit distribution within a year, a small profit will be made in the second half.

In terms of GP margin, the year-over-year high of 4.1 percentage points is a result of not only revenue mix shift, but also improvements in GP margin at every single line of business, notably in TOP TOY and overseas. Going forward, we have reason to believe our GP margin can be optimized further because of above reasons, yet, we will keep an eye on value proposition and make dynamic judgments.

SG&A expense increased 56% in total, including a 66% increase in selling and distribution expenses, and a 27% increase in general and administrative expenses. SG&A represented 24% of our total revenue, 5 percentage points higher than the same period of last year, of which 3 percentage points were directly related to our new DTC stores opened in the past 12 months, including rent, D&A, and payroll.

As we discussed in the press release, the investment into DTC stores is to make sure the future success of our business, especially in strategic overseas markets such as the US markets. As of June 30, 2024, number of DTC stores in overseas markets was 323, we're only doubling such figure compared to a year ago.

In the first half, revenue from DTC stores increased by 111% related expenses, such as RINs, G&A transits, and payroll, excluding SBC expenses increased 83%. This new stores contribute more substantial sales in the second half, we are taking effective measures to improve operational efficiency in these DTC stores and control costs. So the initial results is very good. So we believe the hike in operating expense ratios won't last too long.

Conversion and advertising expenses increased by 46% in the first half, P&A expenses as percentage of revenue stabilized at around 3% in the first period. License expense increased 24%, consistent with our revenue growth. Logistics expenses increased by 54% compared to 43% of revenue growth in overseas, reflecting to a certain extent the raising performance caused by tension in international pricing during the first half.

Turning to profitability. Operating profit increased 18% year-over-year, OP margin was 19.3% compared with 20.4% in the first half of last year. Notably, there was a $12 million net foreign exchange in this first half compared with a $55 million net borrowing exchange gain in the same period last year, excluding CapEx impact, adjusted OP margin was 20.3 percentage points compared with 20.1% last year. Adjusted net profit was RMB1.2 billion, up 18% year-on-year. Adjusted net margin was 16% compared with 17% last year.

Excluding FX impact, adjusted net margin was 16.2% compared with 16.1% last year, imply our stable profitability and the scalable growth. Adjusted EBITDA increased by 26% year-over-year, outpacing the growth in revenue, adjusted EBITDA margin was 25.4% compared to 25.2% in the same period of last year. Adjusted basic and diluted earned per ADS increased by 18% and 19%, respectively.

Turning to cash. So by end of June, we maintained a strong cash position of RMB6.9 billion, Net cash flow generated by operations in the first half was about RMB1.3 billion. CapEx was RMB303 million and free cash flow was above RMB1 billion.

Turning to working capital. The channel inventory returned over remains efficient by the end of first half, 36% of MINISO (technical difficulty) brand inventory were located in overseas market compared to 21% a year ago. Inventory turnover days were 81 days including 70 days in China and 147 days for overseas markets.

Structurally, inventory over 180 days accounted for about 12% at this level. Turning to capital allocation. We are committed to a dividend payout ratio of no less than 50%. Our capitalization strategy will also continue to balance fast growth and our commitment to bring stable and foreseeable returns to shares. The Board of company has approved an interim cash dividend for first half of 2024, with a total amount of approximately RMB621 million. Apart from payments of the interim dividend, the company has returned RMB1.4 billion in cash to shareholders through dividend, share repurchase from year-to-date.

Since 2020, we have returned RMB3.6 billion to our shareholders upon payment of the interim dividend accounting for 62% of adjusted net profit accumulated from 2020 until the first half of this year. We are confident in accomplishing our full year business plan and strategy and our share price has been trading below its intrinsic value. The Board of company has approved a share repurchase program to make the best of the general mandate at our General Meeting held in June this year.

Under this general mandate, the company may repurchase its shares in the next 12 months, not exceeding 10% of the total outstanding shares and share repurchase in open marketing subject to market conditions. We believe that the share repurchase program is in the best interest of the company and its shareholders as a core and great value for shareholders.

Our performance for the first half once again demonstrates the strength and resilience of our business model and reflects our ability to execute on our IP and globalization strategy. I'm very confident that we will once again meet our full year targets. Our financial strategy will continue to remain disciplined in terms of allocation of capital as we commit to delivering stable profits.

Our target for 2024 remain unchanged from our expectations at the beginning of the year, the [revenue earnings] is expected to increase (technical difficulty), and adjusting net profit target is RMB2.8 billion or higher.

Thank you, and this concludes our prepared remarks. We are now ready to take questions.

(Operator Instructions) Lucy Yu, Bank of America Merrill Lynch.

So two questions here. Firstly is on the domestic market. In July and August, we have witnessed some weakness in the domestic demand. So could you please update us how is your performance in the first two months -- in July and August? And how should we think about the pop-up store contribution to these two months as well as for the rest of the year? So that's the first question.

And the second one is for the selling and distribution expense as a percentage of revenue, which has exceeded 20% this quarter. So this is the highest since we have divested, so I believe this is due to a faster overseas DTC expansion during low season. But how should we think about this ratio going forward in the second half? Should we expect that to go back to maybe the first quarter level or last year level? Thank you.

(spoken in foreign language)

So I will translate for Mr. Guofu quickly. So about your questions on the performance in the recent -- in recent months. The best same-store sales in China in the first half was about 98%, we stay at the increased by 0.1% and EBITDA by 2.5% and our conversion rate from stock visit to purchase stabilized. .

Now we are facing challenges by a very soft domestic consumer market, but very, very quite confidence to keep the best-in-class same-store service in China, specifically in the same-store sales above 97% year-to-date, and we will see a relatively lower base entering into September. And we also are working on IT products, improving the operational and investment, so our target for two years is to stabilize with 100% of recovery or higher or lower than on that base. And our target for the whole year for our offline business remain unchanged with 10% to 15% year-on-year growth.

And about the same-store sales in China, we have more initiatives going forward. The first is improving our product capabilities, and we'll focus on IP and strategic parties to improve our -- to optimize our product structure. And we will have a lot more and more interesting product categories going forward, which will help our increase in terms of sales, products.

The second is increase -- improve our capabilities in channel expansion as we have in the last several quarters. No, we have stores in China that we can improve by structurally operate the store, inside, and so on. So since last year, we had executing this improvement, our plan is to finish finished this improvement in next coming years.

And the third is to improve including our strategic brand upgrade. And we want to build lots of flagship stores with better image and better performance. For example, two weeks ago, we have a newly launched in Tianjin, and we have received very, very positive initial feedback from consumers and we have also done volume from this new kind of launched in this year.

And going forward, we will have another format experience, which we are in a very good position to see that, and we see, about the second question about store sales and distribution experience, big answer is, as I mentioned, the hike of our expense, especially the expenses with DTC stores won't last long because, if you remember, we have talked that stores in the US now already in 40 states already.

Considering that we have like 200 stores, that means our stores in United States we will need open more stores before we can get these logistics expenses or real expenses to leverage. So because our store expansion back in the US is very -- is very quick. For example, by the end of this year, we will have doubled our store base compared to one year ago.

So we think that when we have 300 stores or 400 stores, 500 stores we reach these logistic expenses and other expenses such as the store rents and labor costs are also to be optimized. So I think in the second half, you will see that our operating expense ratio being significantly reduced.

Michelle Cheng, Goldman Sachs.

(interpreted) So I have two questions for management. For the first one is on US market. Given the volatile consumption market in US in the past few months, do we see any new opportunities or risk and how this will impact expansion and store formats. And also, the second question is about Europe market. This is one of the key focus we mentioned earlier in the year. And can you update us the key -- any development for different markets in terms of the store format partnership with different partners and also the store format, et cetera. And any good progress we are seeing so far and any room for further improvement?

(spoken in foreign language)

Let me quickly translate. So overall in overseas market same-store service was double-digit growth in the first half, we're at that very stage, we have brand awareness, product utilization, operational authorization and so on. So we strongly believe that we still have growth on same-store sales growth, but profit stay .

In last year, in the terms, the major driver of our US business for same-store sales growth. But in this year, our target is to double this business. So I think our major driver will be extension. So in the first half, the US same-store sales growth increased by 14%. And the strong network store numbers double.

And by the end of July, we already added about 69 new stores in United States, and we'll have about 100 this year. And in the future, we'll see that the United States will accelerate in terms of store opening. And we are open to discuss to have more franchisees or distributors currently joining us to have very rapid store expansion, while maintaining profit in United States.

And since we increased 14% in terms of growth in the United States, in the future we will increase further, the first is the product side, we will adjust our product structure to increase the local supply chain and increase our inventory turnover and reduce the product time and outside, we want to increase more local sourcing, especially in IT-related, products and IP voice, and we were also introducing best-in-class suppliers in other parts of the world, including Japan and Korea, and we will also increase our IP-related product research and development, which will increase our variance, products and in terms of store fronts, we will upgrade our stores there, including image and experience, and we will upgrade our digital system to improve the store efficiency as we've been in China several years ago.

And our loyalty program, we will increase our program, as we mentioned. We will improve our customer insight capabilities and our product structure and tailor our store operation measures to increase repurchase. We will have a strong team in the overseas in the US.

We will have local team including the buyers, and we will have a business in overseas including training, local operational staff, and we will have a lot of online course and we are now building our department in the South Asia to train new overseas team in Malaysia, and the first batch of this project is finished. And this new team will be with the expansion in the United States.

And in the next two years, we will also set our chain center in the North America and will prepare for our expansion there.

(spoken in foreign language)

On second question. So we have three measures. The first is the upgrade store formats, take UK as example, where we have been helping to increase and upgrade their channels, to open bigger stores and to open better stores. So in the first half, its same-store sales increased by 50%, 5-0. And it's total sales increased by 150%. And that has once again demonstrated that our store strategy has helped increase the overall performance of the market.

And in terms of today, UK now increased 50% year-on-year. So still has room in recoveries in United States and the Mexico market. But it's already a huge job, and it's the best in Europe already. And in the future, UK will be the benchmark in Europe. And I think the Europe market is the pathway, stores in the future, service is potential.

The second is, we want to still reiterate and differentiate IP a key to our future success in the new growth, IP is now 49% of total sales there, and year-over increase by 5%, especially our flagship store, which has an 85% of our IP sales. And this has robust overall distribution market to increase in margin and the third is,

our top 100 contributed by 90% of our total sales in Europe, and each segment has performed very well, very well. In the future, our key product categories in this will make news on stores in Europe, getting more professional and more -- and provide more immersive experience to our customers. That's helped us to increase our store conversion rate. .

Thank you. We shall close our call now. Thank you all for joining us today. We will see you in the next quarter. Goodbye.

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

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