China Index Holdings Limited

Good day and thank you for standing by. Welcome to the China Index Holdings Limited full year 2021 fourth fiscal quarter earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 on your telephone. please be advised that today's conference is being recorded Thursday, the 24th of March, 2022. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Jessie Yang. Please go ahead.

Thank you, Operator. Hello, everyone, and welcome to China Index Holdings' fourth quarter 2021 earnings conference call. Joining us today to discuss CIH's results are our CEO, Ms. Yu Huang, and Deputy CFO, Ms. Lily Chen. After the prepared remarks, our management will answer your questions. Before we get started, I would like to remind you that during the course of this conference call, we may make forward-looking statements, statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements involve inherent risk and uncertainty. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. CIH assumes no obligation to update the forward-looking statements in this conference call and elsewhere. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC, including our Form F-1. Now, I would like to walk you through our fourth quarter 2021 results, after which Ms. Huang will answer your questions for the Q&A session. In the fourth quarter of 2021, CAH reported total revenues of RMB 173.8 million, a decrease of 4.5% from RMB 182 million in the corresponding period of 2020. Revenues from Information and Analytics Services, SAS, were RMB 88.3 million in the fourth quarter, an increase of 3.1% from RMB 85.6 million in the corresponding period of 2020. Revenues from Marketplace Services were RMB 85.5 million in the fourth quarter, a decrease of 11.2% from RMB 96.4 million in the corresponding period of 2020. primarily due to the broad macro environment challenges the industry is facing. Cost of revenues was RMB 28.7 million in the fourth quarter of 2021, a decrease of 13.8 percent from RMB 33.4 million in the corresponding period of 2020, primarily due to the cost-saving actions CIH has taken in response to the broad macro environment challenges. Operating expenses were RMB 49.2 million in the fourth quarter, a decrease of 91.8% from RMB 600.2 million in the corresponding period of 2020. Selling and marketplace expense and marketing expenses were RMB 24.9 million in the fourth quarter, a decrease of 4% from RMB 26 million in the corresponding period of 2020. General and administrative expenses were RMB 24.3% in the fourth quarter, a decrease of 95.8% from RMB 574.2 million in the corresponding period of 2020, primarily due to the bad debt expense of the amounts due from Fung Holdings Limited in 2020 associated with the repayment of the company to the holders of convertible notes on behalf of Fung. Operating income was RMB 95.8 million in the fourth quarter, compared to an operating loss of RMB 451.6 million in the corresponding period of 2020. Income tax expenses were RMB 16.3 million in the fourth quarter, a decrease of 78.5% from RMB 75.5 million in the corresponding period of 2020. Net income was RMB 82.5 million in the fourth quarter, compared to a net loss of 520.6 million in the corresponding period of 2020. For the fiscal year 2021, CAH reported total revenues of RMB 621 million, a decrease of 2.4% from RMB 635.9 million in 2020. Revenues from Information and Analytics Services, SAS, were RMB 311.9 million for 2021, an increase of 2.8% from RMB 303.4 million in 2020, primarily due to an increase in the number of customers. Revenues from marketplace services were RMB 309.1 million in 2021, a decrease of 7.1% from RMB 332.6 million in 2020, primarily due to the broad macro environment challenges the industry was facing. Cost of revenues was RMB 110.1 million for 2021, an increase of 4.3% from RMB 105.5 million in 2020. Operating expenses were RMB 204.1 million for 2021, a decrease of 73.1% from RMB 757.6 million in 2020. Selling and marketing expenses were RMB 113.6 million for 2021, an increase of 1.1% from RMB 112.4 million in 2020. General and administrative expenses were RMB 90.4 million in 2021, a decrease of 86% from RMB 645.1 million in 2020, primarily due to the bad debt expense of the amounts due from funds from FONT in 2020 associated with the repayment of the convertible notes on behalf of FONT. Operating income was RMB 306.8 million for 2021, compared to an operating loss of RMB 227.2 million in 2020. Income tax expenses were RMB 46.5 million in 2021, a decrease of 57.5% from RMB 109.5 million in 2020. Net income was RMB 279.2 million for 2021, compared to a net loss of RMB 318.4 million in 2020. Due to current unstable market conditions, management believes CIH's 2022 Q1 revenue will decrease within 15% from the same quarter last year, while annual revenue is expected to decrease approximately 10% year to year. These estimates represent management's current and preliminary views, which are subject to change. And I would like to thank you for joining us today, and we're now open for questions. Operator, please go ahead.

Thank you. As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, please press the hash key. Please stand by while we compile the Q&A roster. Your first question comes from the line of Gary Zhao from TL Capital. Please ask your question.

The question was from Ms. Huang regarding, so in terms of 2021, there was increased regulatory pressure on the real estate market. And he would like to know what is your outlook for 2022 in terms of the Chinese real estate market? Thank you.

Yes, indeed, because in 2021, the whole market was very good in the first half of the year, and there was a big adjustment in the second half of the year. But you can see that in 2021, if you look at the numbers announced by the entire national government, whether it is from the sales area or the sales volume, they have all reached a new high. In 2022, the entire market will continue to adjust to the situation in the second half of 2021. Currently, from January and February, and the latest market performance in March, it is still not very favorable. However, the whole end of the year is China China According to our prediction, there will be a 6% to 8% decline in sales in 2022. 6.8% to 8.3% decline. But its total volume will be 16 billion square meters. In terms of sales and price, due to some structural reasons, especially the ratio of the 1st and 2nd-tier cities will increase, and the ratio of the 3rd and 4th-tier cities will definitely have a rebound. In fact, the overall price trend will still need a basic stability. This is a judgment of our big market. In this case, because there is a decline in sales volume, it may be more severe in the third half of this year. According to our current prediction, there will be a two-digit decline in the first half of the year, and a corresponding rebound will appear in the second half of the year. This is our big judgment. Okay, so in 2021, the first half of the year, the market was very good and the second half we have seen corrections.

In terms of National Bureau of Statistics, there has been new highs in terms of sales levels. In 2022, we expect to see a continuation of 2021 second half adjustments. For the first three months of this year, we did see disappointing market performance. And for CIH, each year we do have predictions for the real estate market. Based on, for example, in general, GDP is set to be approximately 5.5% this year. And we base our models for mid to long term on factors such as this to predict the broad real estate market. And based on these models, we do believe that in 2022, we will have a 6.8 to 8.3% decrease. But we will see approximately 1.6 billion square meters in terms of sales. In terms of prices, because sales volume will decrease, we do predict that the first half of the year we'll see a double-digit decrease. However, there will be a recovery in the second half of the year. And within the cities, first and second tier cities will see the recovery better than third and fourth tier cities. However, the third and fourth tier cities We'll see a correction, but it will be stable. So this is our outlook for 2022. Thank you.

Your next question comes from the line of Watson Teofa, who is an investor. Please ask your question.

Hi. Thank you very much. Sorry, I thank you. I speak in English. I have a few questions. One is how is the competition from I think CIRC, is CIH in the past year, do you think you have lost market share or are you growing your market share? Secondly, given that CIH software is very useful and all your data for so many years, do you see any possibility of pricing increase for your subscription? The other question, two more questions. Why change auditors from a big accounting firm to a much smaller accounting firm? It's very unusual. And last but not least, do you have any more money due to fund holdings for your convertible debts? And I'm guessing you don't expect to collect back the money due from them as well. Thank you.

Okay, please give us a moment to translate your questions. Thank you.

Yes, I will answer each question one by one. Firstly, currently, there are some similar competing companies in the market. But we may have some differences from other companies before. We started as a data company, and we continue to improve our system based on data to serve our customers, including our payment model, which has always been a subscription payment model to carry out a corresponding service. This is because our subscription mode and the data service system that we have created is based on data. So in this round of control, including the changes in the real estate market, we may be affected by other companies relatively small. In this way, you can also see this situation from the annual report issued by us and other companies. We also have a certain degree of decline, but So, the impact on the overall capital will be less. The main thing here is that our customers are also more scattered. Some companies may This may be because of your service model. The number of customers you serve, because the number of customers we serve may be more extensive. The same amount of money, let's say 10 million, we may serve up to 20 customers in this way. Maybe the 10 million will be done by one or two customers. So this is actually a different place from other companies. That's the first question.

Okay, so for the first question, we certainly do have competition in the market. However, we are different because we started as a data company, and based on data, we improve our system, and that includes servicing our clients. We have a subscription-based service and product built on the foundation of data. So because of this, we are less affected by the fluctuations of the real estate market, which you can see from our financial statements. We have a relatively stable business. We also have a diversified client base, so other companies may have a higher concentration of their largest clients, and therefore are more affected by the market and performance of these large clients. We have a higher number of clients, so for the same amount of revenue, for example, 10 million, we have a larger number of clients, whereas the same 10 million elsewhere, they may be servicing only a few clients. So that was the answer to the first question.

Thank you.

The second question is about the price increase. With the continuous improvement of our data products, including the better use of our SaaS tools and systems, we have a certain price increase. However, the entire market has also undergone some adjustments, including some impact of the epidemic. We also consider some of the customer's market pressure. Although we have more in these two years, it should be from the price increase, especially in 2020 and 2021. Our products are constantly improving, but our price increase is And so for the second question involves price increases. We are constantly working on improving our products

and that includes our real estate database. Based on the market in general, including effects of the pandemic, we are very considerate of our clients' situations as well as their needs. So for this reason, in 2020 and 2021, while we are constantly improving our products, we did not increase our price. And instead, we decided to increase our level of services and diversity of services as well as the diversity of products. Thank you.

So for the third and fourth questions, I will answer them together. So we change our auditors based on cost considerations.

And for the fourth question regarding funds-related costs, we believe that we have explained in our press releases, so we ask you to continue to follow our public press releases on these two, specifically Funds Matters.

Thank you.

Thank you. Thank you. Your next question comes from the line of Henry Patner from CAIO. Please ask your question.

Hi, thanks so much for doing this. Three questions. One is, have you guys considered maybe a dual listing in Hong Kong in the event that given kind of uncertainties around the listing environment in the U.S., if you were ever forced to delist in the U.S., you would have kind of another place in which your stock was listed? That's question one. Two is the cash, the business is so amazingly cash-generative. I'm wondering if you could speak a little bit to kind of on a forward-looking basis what your plans might be for all the excess cash the business will generate. Would you consider share repurchases or dividends or anything of the such? Three, you know, perhaps you could talk about once the real estate market in China improves a bit, what are the growth opportunities for you guys kind of going forward? And I guess four, since there's been a change of leadership at the top, perhaps a little visibility on how that might impact kind of the strategic direction and priorities of the company. Many thanks.

Okay, thank you. Give me a few minutes to translate your question. Thank you.

Hello, this is the first question that you asked, whether it's the Hong Kong or the U.S. This is indeed a big problem. We will definitely see a change in the market. Because the change in the capital market is also relatively large, especially in the entire Chinese stock market, the U.S. stock market, and so on. These things have changed a lot. When facing these problems, what should we do next? I will first translate the first question. So for the first question, whether it's the Hong Kong or the US,

This is actually a major decision that we will continue to observe capital market changes, which as we know right now are very, you know, there's a lot of fluctuation, especially for Chinese companies listed in the U.S. So regarding, you know, whether to list, continue to list in the U.S. or, you know, maybe list in Hong Kong, the board and management will weigh relevant decision points and different data points and we, Once we do make a decision, we will make a press release. So we ask you to follow our IR website on this.

In fact, we have been very cautious about the cash flow, because it is true that there are some relevant opportunities in the current market adjustment, including the whole market change. Then we have always been very cautious about the use of cash. It must be hoped that it can promote our business development. The main thing we actually use more in the current stage is to strengthen our data construction as well as our team construction. Because when the market adjusts, there will be some, we will also be willing to attract more excellent talents. This is the current stage. Then in the future, when the market is better, we will use more of this money. It will still be used in our um um should be relatively standard is not so high so in this case, in fact, our chances are still quite a lot once this market now we are also doing some corresponding this kind of reserve work once the market is better when we believe we can still put this can catch this this big data and technology rich energy this real estate as well as the official industry including up and down from the service industry of this kind of opportunity ah you like us now this property property business of rich energy ah and corresponding real estate of this now is everyone Okay, so for second and third question I will answer together. So historically we have been very conservative in using, in how to use our cash.

And so when there is market adjustments and changes, there are always some opportunities. And because we are conservative in our investment choices, we are waiting for the opportunities which will really improve our business as well as our revenues. At the moment, we use our cash to build our database, so towards database construction, as well as building our team members. in terms of getting better personnel, getting more skilled personnel, et cetera. For the future, we plan to use cash for also fundamentals which will have a big value add for our business, and this includes big data as well as empowering technology. So in China, we do believe that it's not as developed in terms of the technological part and the big data part in the real estate market. And we are making preparations for once this opportunity presents itself, once the market improves. And this includes, for example, servicing the property management sector of the real estate market.

The fourth question, everyone is more concerned about our chairman's question. In fact, in the past, Since then, I have been leading the CRH team to do all the related business. Maybe the development of all our business is more in line with the changes in the Chinese market, and then do a series of things. In fact, Dongshan has been involved in our business for a long time, including other aspects. So even if there are some corresponding So a lot of people may be interested in the change in chairman of our board.

And I just want to say that since the beginning, in the past, it has always been me who has been leading CIH. And so in that sense, the chairman has not been involved in daily regular business operations. So with that, I don't believe that business operations will change because it will still be under my leadership. Thank you.

Thank you. Your next question comes from the line of Haiyu Zhao from Kaohsiung. Please ask your question.

the development of the second curve and the relevant performance scale. This is the first question. The second question is about the current team situation. For example, whether there is an expansion or reduction of the plan this year in such a market environment. The third question is also to understand the situation of the customer annuality in the past year. Thank you.

So correct me if I missed anything, but the question was, first, aside from the residential market, does CAH have any plans for commercial and property management markets in terms of opening up secondary lines of business? Second question was regarding team, basically leadership team, you know, if there's any changes. And the third was a question about renewal in terms of the subscription renewal situation and if there are any changes.

OK, so to I guess

rephrase, the first question is not just in terms of products and services, but also in terms of revenue plans, and also regarding personnel changes and not just leadership changes.

In our current business, not only do we have developers, but also some clients from some business management companies. We started the client service layout for business management in 2007, because this industry is a process of gradual training and pure mass production. So the real effect should be in the last two years. Of course, it is also because of the improvement of the service of our property management and property management industry customers. In fact, it also compensates for some of the problems of our real estate company customers during this financial adjustment. Of course, some of their customers have some problems, etc., and it also plays a role of compensation. No, no, no, no, no, no, no, no, no, no, no. uh uh uh uh uh uh uh It's about 20%. Then we have another one, which is about business, including the business section. We are also comparing the business section and the product section of Xiezilou with the property section. From a certain point of view, the time is not that long. So the product needs to be further polished. In the past, the Chinese market mainly focused on residential buildings. Now, the non-residential buildings market is gradually improving. The number of customers is also increasing. But the number of customers is not as large as the number of residents. And many of the customers of this kind of stock market, they still have some crossroads. For example, some of them do business management, they may extend to do business management. Some do business management or even do asset management and business management. And those who do business management sometimes will also do business management. There may be some crossroads in terms of the management of the stock market. And similar to this kind of thing, there is also a process of compensation. But only the corresponding data produced by this part and the corresponding data

So to answer the first question, in terms of our client base, not just developers but also property management company clients, in around 2007, we began acquiring property management companies as clients. We saw a rise in the number of property management clients, especially in the last two years. and this is due to also an increase in our services. And this increase in both clients and revenue made up for some of the loss in business due to the real estate market from developers. In terms of the number of clients, there are more property management companies in the market, and they are approaching the same number as our developer clients. In terms of revenues, the revenues from property management companies is not as high as from real estate developers, so we do expect that there is room for improvement in terms of revenues. Right now, they account for approximately 20% of our revenue. For commercial real estate and office buildings, in terms of products, we started this sector relatively recently, so there is room for development there, and in the Chinese market has been primarily based on residential real estate, so non-residential in terms of percentage has been slowly increasing. The number of clients that we have in the commercial and office building space is not as high as residential, but there are also some overlap in terms of clients who are both in the commercial real estate and property management business. And this is true regarding both revenues and services. There might be some overlap.

This should be from 2000, 2001, 2021, and 2022. In the past few years, our team size has been constantly expanding, including the city that we originally planned to set up to be affected by the epidemic. In fact, some of the cities that we originally planned to set up in 2020, later at the end of 2021, we expanded some of the city's layout and expanded some of the city's scope. In this way, our entire team has maintained a stable growth in terms of scale. Including in 2022, in terms of our business development plan, in order to adapt to the changes in the real estate market, including in the process of increasing the stock market, we have strengthened the team's construction.

Thank you. Your next question comes from the line of Will from Intrinsic Value Parts. Please ask your question.

I'm sorry. Can I first translate the second question? So for the second question regarding the size of our team, in 2021, we had an increase in terms of the number of cities in China that we serviced. So in 2021 and 2022, we do have an increase in the number of personnel. And this is also because we saw more clients in terms of property management and non-residential business sectors. So we increased our team. And then including in 2022, we do see a stable increase in the number of personnel as well. Thank you.

The third question is related to the client's situation. The client is like this now. Indeed, during the process of adjusting the whole housing market, some of our original clients, because the size of their client's company may be reduced, so they are not able to The size of the service, the volume of the service will also be reduced. But our original customers may have forgiven us for purchasing 1 million services. Now it may become a service of 50 million purchases. There is also such a situation, but it is still purchasing our service. So this kind of connection is still there, but it is just possible that with the adjustment of the market, the amount of service will be reduced. This is one type. Another reason is that the number of our customers is increasing. The main reason is that on the one hand, we have expanded the number of clients such as the museum, the financial industry, the housing industry, etc. On the other hand, there is another reason. After the concentration of major real estate companies decreased, there is still a lot of space for Chinese real estate companies. The number of real estate companies that it serves has not decreased. In fact, we have more new entrants. So for the third question was regarding client base. In general, we do see a decrease in business operations of real estate clients in general. So there is a decrease in the services needed.

So, for example, in the past, they might have bought 1 million RMB of services, and now they only need 500,000. But these clients are still there, so they are still sticky in that sense, but the amount may have decreased. Another aspect is there has been an increase of clients for two reasons. One is that we have more property management and financial services as well as home improvement clients And another is that there has been some consolidation in the real estate market. And, for example, we do see new clients in state-owned enterprises, and we are working on increasing our services in that sector as well. Thank you.

Your next question comes from the line of Wilzo from Intrinsic Value Park. Please ask your question.

Hey, thank you for taking my questions. I have a few of them, so appreciate your patience. My first question has to do with Mr. Mo's resignation. Can you talk more specifically about why Mr. Mo stepped down as chairman? The press release was a little bit vague. It said it was for personal reasons. I was wondering if you could elaborate on what specifically those personal reasons were. In that same light, with Mr. Mo stepping down, he still owns over 60% of the voting rights. and with Mr. Mo no longer on the board of directors, is he still going to be the controlling shareholder or will there be any changes in the voting structure? I was also wondering, you know, about a year and a half ago, General Lanik made an offer to acquire us for around $2.32 a share. Does that offer still stand and is it still under consideration? And then just to follow up on one of the previous questions, And we have around $50 to $60 million in cash on the balance sheet, which is enough to repurchase over half of the total shares outstanding of the business. The business is generating $40 to $50 million in cash. So it seems like we have enough cash for both reinvestment and returning cash to shareholders. And I'd like to bring up the fact that the stock is trading at pretty close to historical low. You mentioned that you were waiting for an opportunity. It seems like the opportunity has kind of presented itself. Alibaba recently announced that they would be spending $25 billion on share repurchases. So why is it that we can't repurchase shares in addition to reinvesting in the business if we have the cash to do so? Thank you.

Okay, thank you. And now I will translate your question for Ms. Fong. One second.

I would like to connect these questions together. First, President Mo has already said in the announcement that it is a personal reason. In fact, the personal reason, you have to say what kind of situation it is. This is not very special. It must be said that if we want to release it, it will be announced in the announcement. It is clear that Renan is still a shareholder. As for the new CAA, because it has been around for a long time, if there are any changes in the next step, we will also explain it in some announcements. If there are no new announcements, then you can pay attention to our announcements. So Ms. Huang will answer all three questions together. First, regarding Mr. Mo's resignation, we did say that in the press release that it was for personal reasons, and we actually, you know,

don't have any more information on this. He is still a controlling shareholder, however, so that has not changed. In terms of General Atlantic's offer, it has been a while, and there has not been any updates. But if there are any updates, we will, of course, make press releases. So we ask you to follow our IR website. And for cash use, it has already been answered in a previous question. So thank you very much.

Thank you. Your next question comes from the line of Henry Patner from CAO. Please ask your question.

Thanks so much. I'm wondering if you could provide a little color on the three segments of the business and the relative size. So I think you said residential, developers, commercial, and property management. And so it's a percentage of revenues. How large is each one of those segments? And then what are the kind of top three competitors by each segment that you guys tend to see in the marketplace? And finally, if you can give a little color of like what it looks like to acquire a customer since it's kind of a subscription type business. What's the sales funnel look like? Is it kind of self-generated, you know, Salesforce going out and making phone calls and bringing folks in? Is it through an advertising campaign? What does it really look like by each segment, getting a new customer? Many thanks.

Okay, thank you. Give me one second to translate.

Okay.

As of now, we still have more than 60% in the past year. About two-thirds. Then the property companies, including the business, because sometimes these two clients should focus on the property, and the business clients are the subcontractors. In fact, commercial customers are a little bit different from developers, and also a little bit different from property companies. Because sometimes these two, they may be developed and extended to do the commercial part. In addition, there is also a part that belongs to the property and, including the original, you see a few major industries, they both do property and do commercial management. Similar to this, there is a part of the intersection of these factors. Then this part of the client can probably account for nearly 20% of our total amount. If you add a lot of it, it can account for 20% of our total amount. Then the rest is finance and some other things. Probably a number of clients. The contribution of the client's amount. Then if you look at the number of clients, So to answer the first question in terms of our client base, approximately 60% or maybe two-thirds are residential developers.

And 20% are property management and commercial real estate. And this is because there is overlap for commercial real estate with both residential developers as well as property managers. So some residential developers also do commercial, and some do property management and commercial together. So this as a group accounts for about 20% of revenue. and the rest 20% is financial services customers and others. And in terms of the number of clients, the property managers and developers are about equal because the property managers, basically there are a greater number of them in the market.

They are different from us because there are several types. For example, some past sales agents, such as new house sales agents, such as Yijun and Yijun, and then sent out Kerui. They may have some competition with us, but they are more focused on the services extended by new house sales agents, which may be a very important part of them. The other type is the type of economic company, that is, a part of the customer who comes out of the economic company. And then they will definitely have more income, which is related to the second-hand business, the income of the economic business. But the income from data is still very small. For example, like the shell, its income from data is very small. We are based on data and data extension services, it may be more. It is based on data services, the main energy will be in the economy or the second-hand intermediary. Of course, there are some Internet companies in the third category, such as 58, and then similar to them, but they are more about making some income sources. The main income source will also accumulate some data, but its income source will be more for advertising or tagging related business income. So maybe the income, even though there is a certain degree of intersection with us in these aspects, but the main source of their income is still different from ours. This is from the perspective of developers, including those around the business, etc.

So the second question was on competitors. And so from a real estate developer market client base, we have a few different types of competitors. However, they are really fundamentally different from us. So for example, one type is based on new property sales distribution. And that, for example, e-house or CRIC. That's one example of that type of competitor. Another could be focused on secondary housing market, so real estate agencies, for example, Beikou. However, they have low revenues coming from data and databases. And the third type of competitor could be online companies, for example, 58, but their main source of income mostly comes from ads or listings. So in terms of revenue source, There may be some overlap with us, but fundamentally, most of these competitors are quite different from our revenue source. So that was based on a residential property developer perspective. From a property management sector perspective, we started very early, so there are no real competitors. We were the earliest to pay attention to this sector, and our competitors, if any, started to pay attention maybe only in the last few years.

The third question is about marketing. There are several ways to do this. One is online. Online, we will publish more data reports, including our new media, including our own Internet platform. After the trial, after a certain amount of time, we will open up our official service. This is the main way. In addition, when we open up these things, we also need some offline, face-to-face training, including some online and offline training related to it, so that it can use our products well. We also need to do some work in this area. In addition, we actually do some meaningful conferences every year, including some conferences on research results, conferences on the form of the market, conferences on corporate research, and so on. These conferences are actually offline activities. will also help us attract more customers to participate in our data analysis conference, including the conference on the results of our corporate research and asset research. Through this form, we are also pushing our products to carry out some active marketing. This is probably the main way. Of course, all of these things, the final result still requires a certain degree of face-to-face communication and service, which is also indispensable.

So the third question is based on, it's about our sales channels. So we have both online, online sales channels based on our reports, our content that's posted on so-called new media, such as our channels on social media content. We do have monthly reports and our monthly numbers and indices are well regarded in the industry. So after these reports and numbers come out, we do make follow-up calls to our prospective clients to invite them to try our database, to open up our database for trial period. And after the trial period, we will start our database services for these clients. And we also need offline face-to-face meetings, including product demos. Another way we do our sales is through industry conferences, as well as offline events where we publish and announce our data analysis, market analysis, as well as industry analysis. So we do a lot of event-based marketing. And at the end, whether it's online or offline, we do need face-to-face interaction, including frequent communication as well as service, in-person service. Thank you.

Thank you. As there are no further questions, I would like to hand the conference back to the speakers for closing remarks.

Thank you, Operator, and thank you everyone so much for joining China Index Holdings' fourth quarter earnings call today. We look forward to speaking with you again for our first quarter 2022 earnings call. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.