Hailiang Education Group Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Heilang Education Group's second quarter and first half of fiscal year 2021 earnings conference call. During today's presentation, all parties will be in a listen-only mode. This conference is being recorded today, Wednesday, March 10, 2021. Joining us today from Heilang Education Group are the company's chairman and CEO, Dr. Junwei Chen, the company's chief financial officer, Ms. Deborah Lee, and the company's board secretary, Mr. Letao Kew. I would like to remind our listeners who are on this call, management's prepared remarks contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements as contained in the private security statement and Litigation Reform Act of 1995. Highline Education is under no obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. At this time, I'd like to turn the conference call over to Dr. Junwei Chen, the company's chairman and CEO. Dr. Chen, please go ahead.

Thank you. Operator and everyone for Jordan Highline Education Group, Inc., second quarter. and the first half of the fiscal year 2021 earnings conference call today. On our call today, I will give an overview of our performance for the second quarter and the first half of this fiscal year. Mr. Li Taochu, the board secretary, will introduce the company's operational highlights of this quarter. Then, our chief executive, Financial Officer Ms. Deborah Lee will share the details of the company's operational and financial review. Please note that all numbers presented in today's call are in RMB. Lastly, we will conduct a Q&A session to take your questions. Although the impact of COVID-19 continues to raise hurdles for business across the globe, We are pleased to announce our financial results in the second quarter, and the first half of fiscal year 2021 are in line with our expectations. In the first half of fiscal year 2021, we recorded revenue of RMB 937 million, which increased by 25% from RMB 749.4 million for the same period of last year. The net profit attributable to the company's shareholders was RMB 268 million, which increased by 31.3% from RMB 204.1 million for the same period of last year. As one of the market leaders focusing on improving the quality of primary, middle, and high school education services and secondary education services in China, we are confident that we will gain more market share and drive long-term profitable growth for the shareholders in the future. Next, Mr. Li Taochu. Our board secretary will share with you the company's operational highlights of this quarter.

Thank you, Dr. Chen. Now let's turn to some achievements of the company in terms of talent of the technology in the second quarter. We believe that the company's rapid development is inseparable from the efficient supply of talent and technology in the future. Highland Education knows that talents are the first vitality of the company's development. We attract talents by delivering teaching concepts, management culture, and brand spirit to the society. They actively build a new life cycle ecosystem for Highland Education's talent cultivation, thus forming a closed loop for talent supply. It is not only necessary to attract talents but also to retain talents. Highline Education will integrate existing talent training careers such as Excellent Teacher Development Academy, Casual Army Academy, and the Logistics Academy to provide a better platform for the training of teachers and management talents. This platform will comprehensively improve the efficiency of cultivating outstanding teachers and management talents become an all-around talent tool for high-level education's rapid development and fully solve the bottleneck of insufficient talent supply. For example, the Ketro Army Academy now has 150 trainees, and the company can efficiently dispatch those 150 management trainees to the new schools according to the development plan of to provide strong management and support for the extended development of the highland education. In addition, the core guarantee of high-quality expansion is established, stable, and reproducible school running standards. Highland education is actively developing a detailed and practical school running guide covering all school running segments, such as school size selections recruitment methods, and student growth. This is worth mentioning that Heilong Education has created a smart campus and cooperated with well-known technology companies to develop Heilong Education's unique integrated software platform. Turning the traditional teaching system into an all-round and three-dimensional education ecological community under Under the strategy plan of education plus technology, the automated data collection is completed through 5G, Internet of Things, and non-sensing devices, and various data information in the school is analyzed through AI algorithm models. Based on those technological supports, we will adjust the direction of teaching and management scientifically and dynamically to achieve more perceptual and precise education solutions. Highland Education's intelligent application system will be continuously launched in the recent years. Taking the second quarter of the fiscal year 2021 as an example, the company launched the teacher growth training platform, star teacher training, the electronic homework and teaching system, Highland Cloud Exercise. and the home school communication service platform, Home School Co-Education. The company will continue to promote the use of education technology in its school network. These technological and innovative elements not only improve the integrated intelligence level of our existing school, but also provide a guarantee of teaching quality and management standardization. with the rapid expansion of Highland Education's new schools in the future. Thank you for your continued support to the company. Next, I will turn the call over to Ms. Deborah Lee, our newly appointed Chief Financial Officer, who has over 30 years' experience working with global accounting, tax, and advisory firms and strong leadership skills, and will lead our global finance accounting, tax, and strategy functions. Welcome again, Deborah Lee, to join the Highland Education Team. Now, she will share the company's operation and financial reviews of the second quarter and the first half of the fiscal year 2021 on behalf of the management team. Deborah, please go ahead.

Thank you, Mr. Chiu, for the nice introduction. Good morning, everyone. On behalf of the management team, I will provide you with a summary of our key operational and financial review for the second quarter and the first half of the fiscal 2021. The company provides primary, middle, and high school education services, education and management services, and similarly education services such as education training services, study trip services, and overseas consulting services. For our school network as of December 31st, 2020, we had a total of 41 schools of which 13 were affiliated schools that we sponsored and we managed The aggregate number of students enrolled in both affiliated and managed school was 72,893, an increase of 7.5%. For affiliated schools, the number of students enrolled in the basic and international education programs was 21,636 and 5,300 as of December 31st, 2020. An increase of 15.4% and 8.7% respectively. The annualized average tuition fee of basic and international education schools was RMB 98,000 113 and R&B 100 1,295 an increase of 4.4 percent and 3.2 percent respectively. For the managed schools we had 45,957 students as of December 31st 2020. We continue developing the managed schools market to more public and private schools to improve their operational efficiency and academic performance utilizing our education plus technology business model. To improve students' learning experience and enhance their academic performance, We also provide educational training, study trip, and overseas consulting services. We launched online education training in the first quarter of the fiscal year 2021 and have seen its exponential growth. For the first half of the fiscal year 2021, the educational training business served 54,055 student attendance of speech, 28,424 student attendance online training, and 25,631 student attendance online training. We expect online training will continue growing for the rest of the fiscal year 2021. and future years. We also plan to open at least five more on-site training centers during fiscal year 2021 and 2022 to nine training centers in total. Our focus on recruiting and retention of talented teachers and providing continuing teacher training has demonstrated that our approach is working. For the first half of the fiscal year 2021, our students have won more than 100 provincial and national disciplines and arts and sports competition awards. Our students of the international program have received more than 300 formal and conditional offers from universities as of early February 2020. About 60% of the students in the VCT class have been formally accepted to the top 50 universities in the world. And about 75% of the students in the A-label class has been conditionally to the top 100 universities in the world, such as University College London and the University of Manchester. Now, let's review our financial results in detail. For the second quarter of the fiscal year 2021, our revenue was RMB 638.5 million. an increase of 22.9%. The gross profit was RMB 316.9 million, an increase of 29.9%. Our net profit attributable to the company's shareholders was RMB 241.1 million, an increase of 9.9%. Our gross profit margin was 49.6%, an increase of 2.6% points. And the net profit margin was 38.5%, compared with 22.2% for the same period of last year. Our basic and diluted earnings per share were RMB 0.58, compared with RMB 0.53% period of last year. For the first half of the fiscal year 2021, our revenue was RMB 937 million, an increase of 25% from RMB 749.4 million the same period of last year. Our gross profit margin gross profit was RMB 361.4 million, an increase of 50.2%. Our net profit attributable to the company's shareholders was RMB 268 million, an increase of 31.3%. Our gross profit margin was 38.6%. an increase of 6.5 percentage points. And the net profit margin was 28.9%, an increase of 2.2 percentage points. Basic and diluted earnings per share were RMB 0.65 compared with RMB 0.49 for the same period of last year. Revenue from primary, middle, and high school education services was RMB 824.6 million for the first half of fiscal year 2021, an increase of 29.1%. The increase was due to the increase in the number of students and the analyzed average tuition charged to each student. Additionally, the 2019-2020 school year was ended in July 2020 due to the impact of COVID-19. As a result, revenue of RMB 36.1 million was deferred and recognized in the first half of the fiscal year 2021. Revenue from Educational training services increased by 36.9% to RMB 59.4 million for the first half of the fiscal year 2021 due to the launch of online education training business. Revenue from study trip services increased by 74.2% to RMB 11.1 million for the first half of the fiscal year due to recovery restrictions because of COVID-19. Revenue from education and management services increased by 110.8% to RMB 33.1 million for the first half of the fiscal year 2021 due to the company added two new managed schools Suqin City and expanded our service scope to some of the managed schools. Other revenue consists of overseas study consulting services and hotel management services. For the first half of the fiscal year 2021, other revenue was RMB 8.8 million compared with RMB 8.4 million for the same period of last year. Cost of revenue increased by 16.7% to RMB 321.6 million for the second quarter of the fiscal year 2021. Cost of revenue increased by 13.1% to RMB 575.6 million for the first half of the fiscal year 2021. The increase was due to a compensation increase for additional inflow ease offset by a decrease in study trip services cost resulting from the outbreak of COVID-19. Other income decreased by 70.6% to RMB 10.9 $10.2 million for the second quarter of the fiscal year 2021. Other income decreased by 43% to R&D $28.4 million for the first half of the fiscal year 2021. The decrease was primarily due to a decrease in subsidies from the local government grants. Selling expenses increased by 13.5% to RMB 10.9 million for the second quarter of the fiscal year 2021. Selling expenses increased by 30% to RMB 20.3 million for the first half of the fiscal year 2021. The increase was significant. primarily due to the rebate provided to the new registered student to promote education training service or business. Administrative expenses increased by 17.9% to RMB 17.9 million for the second quarter of the fiscal year 2021. The increase was primarily due to the increase in salary expenses for the additional office and administrative staff. Administrative expenses increased slightly by 2.9% to RMB 32.7 million for the first half of the fiscal year 2021. The increase was primarily due to the increase in salary expenses for additional office and administrative staff offset by reducing administrative expenses resulting from the liquidation of Jiangxi Haiguo Education Management Company, LTD, in the second quarter of the fiscal year 2020. Finance income increased by 84.9% to only 10.7 million for the second quarter of the fiscal year 2021. Finance income increased by 39% to RMB 18.3 million for the first half of the fiscal year 2021. The increase was primarily due to an increased interest income derived from term deposits with a related party finance entity. Finance costs were RMB 0.39 million for the second quarter of the fiscal year 2021 compared with RMB 0.22 million for the same period of last year. Finance cost decreased by 82.9% to RMB 0.7 million for the first half of the fiscal year 2021. The decrease was primarily due to an early payoff on an 18-year disability on the campus lease in Juji City in September 2019. Income tax expenses was RMB 63 million for the second quarter of the fiscal year 2021, compared with RMB 40.1 million for the same period of last year. Income tax expense was RMB $83.6 million for the first half of the fiscal year 2021, compared with RMB $53.1 million for the same period of last year. The increase was due to the additional income generated from the education services that were subject to income tax. fiscal year 2021 was 23.6, compared with 21% for the same period of last year. Now, for a quick summary of our energy and cash flow, on December 31, 2020, we had cash and cash dividends of only 191.3 million, compared with RMB 515.3 million on June 30th, 2020. On December 31st, 2020, we have 10 deposits at a related party finance entity of RMB 1,988.3 million, compared with RMB 921.6 million as of June 2020. Net cash provided by operating activities was RMB 835.4 million for the six months ended December 31, 2020, an increase of 75.5% from RMB 476 million for the same period of last year. Net cash used in investing activities was RMB 1,139.3 million for the six months ended December 31st, 2020, compared with RMB 465.2 million for the same period of last year. Net cash used in financing activities was R&D $19 million for the six months ended December 31, 2020, compared with R&D $53.1 million for the same period of last year. We are very excited about the financial result we have achieved, which provides solid financials to support our future growth. The achievement is due to our management team diligently implemented our business strategy, utilizing our innovative business model, i.e. education plus technology. We achieve operational efficiency that contributes to our revenue growth and cost reduction. We will continue to grow our business through organic growth as well as mergers and acquisitions. Our organic growth is through the improvement of school utilization rate and the steady rise of tuition, leveraging our strong brand. We will also look for merger and acquisition opportunities within and outside of China. We are confident that we will continue delivering sound financial results to our investors. Now, I would like to turn the discussion over to the operator for any questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. Our first question comes from Rosa Chang. Please go ahead.

Okay. Good day, management. Congratulations on becoming a remarkable result. I have two questions for the company's CEO, Dr. Joy Chang, first. How does the public consider plans for expanding your schools in the future and the fast selection of new schools? And what are the driving factors for proposing your financial education project? Thank you.

Thank you. Thank you, Christian. About the future of the Zhenxiao Project, I would like to explain it in two ways. I would like to speak Chinese more clearly. I will translate it later. First of all, at the end of the half-year report, we have determined that in 2022, at least two self-managed schools will be added, namely Xianghu Future Public Schools in Hangzhou, Zhejiang, and Minghai Public Schools in Ningbo, Zhejiang. It is expected that these two schools will add 5,600 new schools. Second, from the second half of 2021, we will speed up the opening of schools, increase the overall investment of the school, and strive to increase the number of schools in 2022. In the next two to three years, marine education will lead to a wave of growth. We have developed a comprehensive and detailed development plan, mainly considering the following two dimensions. The first is the choice of area. Current marine education is mainly in the East China Sea region, so we will continue to root in the East China Sea region. Around the distribution of schools in these four areas, for example, we are now in Hubei's Xiantao Yizhong, Shandong's Feicheng Hanyang Foreign Language School, Gansu's Lanzhou Hanyang Experimental School, etc. Then the formation of such a strong dynamic energy to shoot around the current central school. This is the first one, the geographical location. The second one is the choice of the method. In the future, we will focus on operation management, and the new asset self-implementation model, which focuses on education revitalization, and there will also be a part of acquisition as the main three campus expansion models. I will interpret for Dr. Junwei Chen. For the first question, I would like to elaborate on the school network expansion plan from two aspects.

The first one is as of the first half of fiscal year 2021, we have confirmed that the company would open at least two additional affiliated schools in fiscal year 2022, namely Xianghu Future School and Ninghai Public School. Secondly, from the second half of the fiscal year 2021, we will speed up the school expansion and increase the overall investment We will strive to add more fit schools in the fiscal year 2022, aside from currently two schools pipeline. Looking forward in the next two to three years, Hanyang Education will experience a wave of growth. We have formulated a detailed development plan. There are two dimensions of this plan. The first dimension is the choice of location. The company will keep deeply involved in the East China region and simultaneously develop in four major regions, which is Northwest, Southwest, Central, and Southwest of China, respectively. And we will successively set up regional headquarters in these four areas surrounding our existing schools, such as Xiantao No. 1 Middle School in Hubei Province, Beicheng Hai Liang Foreign Language School, in Shandong Province, and Lanzhou Haliang Experimental School in Gansu Province, to form and leverage a strong momentum of expanding from the center to surrounding areas to expand the school network. And the second dimension is a choice of developmental model. In the future, we will mainly focus on three expansion models. First one is operation and management model. Second one is SILI sponsorship model, which mainly leverages revitalizing education project. The third model is acquisition. The SLI sponsorship model and operation and management model will be the critical pipeline for future school expansion. Dr. Chen, please for the second question. 关于第二个提出的教育振兴计划的驱动因素,

I would like to answer from the following point of view. The company's proposed education policy is based on the concept of our enterprise, which is to make the enterprise more efficient and seek social merit. At the same time, it is because we have analyzed the current status of China, especially the education market, which has just been flattened and is in need of development. It is still a vast blue sea. Then in these underdeveloped areas, there is a serious shortage of teachers. A large number of high-quality students are lost abroad. The quality of education is generally low, which has also affected the local economic development. Therefore, the local government, such a government underdeveloped, is very desperate to introduce high-quality educational resources. And the local people, some people with better conditions, also have a desperate wish to have a good school in the local area. So we rely on the great strength of the entire Hainan Group for Hainan education, and the support of the entire Hainan education technology system that we are now promoting, as well as the advanced education ideas and rich educational resources of Hainan education. Then we are in this need to develop limited rental or self-management of a school Then share all our educational resources Use our science and technology, especially our educational ideas, science and technology results Then quickly and overall to improve the local education and teaching level Not only that, then we also need to use a large number of platforms We are preparing such an action for the return of talents We call it the Kui Chao Plan China China China China China China China This is where the children can be raised and then they can go back to work. So the current development and education reform action is one of the major strategic goals of long-term education. In the education reform plan, our plan will be in the northwestern region of China, the southwestern region of China, and so on. Economic development is behind, education resources are scarce, and the proportion of private schools What is your question on striving factors for proposing the revitalizing education project? I'd like to talk about the following. The company's revitalizing education project

is not only derived from corporate responsibility, but also from the vast ocean of potentials of the education market in counties, especially underdeveloped counties. In other words, the severe shortage of teachers and the flowing out of high-quality students and the economy low, sorry, the commonly low quality of education gathered led to the bottleneck of economic and social development for these areas. Therefore, local governments are eager to introduce high quality education resources and the people have ardent expectations for good schools. So relying on the strong support of Hallyang Group and educational technology and advanced educational concept, we could sponsor schools under the SLI model in the local area. to share our resources, especially our educational concept and the technological achievements in order to quickly and comprehensively improve the local education level. Moreover, we are also launching a project aiming at attracting talents to these counties, which is named as Talent Return Initiative. This initiative leveraged Hai Liang, the platform, and also enables outstanding local graduates, especially those from Tsinghua University, Peking University, and other domestic first-class universities to return to their hometown to participate in the local education actively, thus to form a closed loop for talented supply for local areas. And as one of the company's long-term major strategies, revitalizing education project will concentrate on Northwest China, Southwest China, and other underdeveloped regions. This project will be carried out in small town and rural areas with backward economic development, lack of educational resources, and low proportion of private schools. Moreover, this project will also significantly increase our total number of students. And in the meantime, We also effectively enhance the brand influence and the company's economic benefits. Thank you. Thank you for your question.

The next question is from Daisy Zhou. Please go ahead.

Hello, management. Thank you for your presentation. There are two questions from my side. We have noticed that revenue from educational training services in the first half of fiscal year 2021 has increased significantly compared with the same period of last year. So could you please share with us the reasons for the strong growth and in addition, how the proportion of revenue from online education training services and outside educational training services? Thank you.

Thank you for your question, Daisy. Before the fiscal year 2021, the company's education training business only provided on-site education training. Driven by the COVID-19 pandemic, the company quickly developed technology to roll out online education curriculums. We launched online education training for students in the first quarter of the fiscal year 2021. It was a blockbuster and has grown exponentially since its inception. For the first half of the fiscal 2021, the online education training served 28,424 student attendances, accounting for 52% of the total number of student attendances served by our education training business. Revenue from education training services was RMB 59.4 million for the first half of the fiscal year 2021, which increased by 36.9% from RMB 43.4 million for the same period of last year's. The revenue propulsion from the online education training services and onsite education training services is 66% and 34% respectively. Our strategy for education training is to integrate online education training with onsite education training to maximize the benefits for the students. We will collaborate with High Down Education Research Institute to further develop a localized curriculum system, including all subjects for students at all labels. Utilizing technology such as AI smart technology, big data smart tools. We enable to create interactive learning and teaching experience for our students and teachers, combining on-site and online training. We believe that education training service will continue to grow and contribute significantly to our profitable growth soon.

The next question is from Alan Huang. Please go ahead.

Hello. This is Alan Huang. So my question is, what are the reasons for significant growth for the first half of fiscal year 2021?

All right.

Thank you for your question, Adam. In the first half of the fiscal year 2021, our gross margin was 38.6%, an increase of 6.5 percentage points in the same period of last year. The increase in gross margin was mainly due to the revenue increase from the following circumstances. One, our student enrollment continued to grow. and we charged higher average tuition to each student, compared to the same period of last year. Second, revenue of study trip services has decreased significantly since the outbreak of COVID-19. And the gross part margin of this service is much lower than that of the other services. Three, the 2019 and 2020 school years was ended in July 2020 due to the impact of COVID-19. As a result, revenue of RMB 36.4 million was deferred and recognized in the first half of the fiscal year 2021.

The next question is from Jack Will from Prime Minister. Please go ahead.

We've noticed that the number of international education students in company has increased compared to the same every last year. Considering the impact of the COVID-19, what's the management's view on the trend of international education development and what are the comparative advantages of high-level education compared to regional education groups and the overseas education groups operating in China in terms of international education business?

Hi, Jack. Thank you for your question. This is Marcus. I will take this one. Actually, this is a very good question because for fiscal year 2021, Enrollments in our international programs increased 80% compared with last year. This increase was mainly attributable to two aspects. The first one is relying on the company's abundant educational resources. The curriculums of international programs can be flexibly... Sorry. Okay, I will continue. And these diverse programs attracted more students who originally only focused on studying abroad to join our schools, i.e. the basic programs that aimed at Gaokao, the Chinese college entrance examination. The other aspect is the demand for studying abroad still exists. And it's usually three years before students have to make the decision for studying abroad, where the impact of COVID-19 may have receded. And notwithstanding the COVID-19 having a negative impact on studying abroad market, we believe in short to medium term, the overseas higher education resources will still hold a prominent position. So with the COVID-19 subsides, we expect demand for studying abroad to previous level sometime in the future. And for your second question about the competitive advantages of international education, that higher education has to other, compared with other regional and foreign competitors. Firstly, higher education has a relatively larger scale and more education resources, so we can achieve effective coordination. Under the influence of COVID-19, many international education enrollments are facing difficulties, but higher education programs, especially international programs, we cover our education programs cover both international education and basic education meaning that the new students who prefer to choose basic education programs could easily and conveniently be transferred to other schools to other programs among our school network and secondly the company's flexibility and its ability to resist risks are relatively stronger. Let me give an example. We can leverage our experience in basic education to open classes that cover both international education and basic education in a short time of period, so as to attract the students who are worried about the future application for overseas universities. And thirdly, I think competition in the international education market in first- and second-tier cities has been relatively fierce, while higher education schools are currently mainly located in third- and fourth-tier cities. Thus, in the third-, fourth-, and even fifth-tier small town and rural markets, we are more experienced and more competitive compared with these regional international education groups or foreign education groups. And fourth, as a comprehensive education service provider, Haleo Education covers primary, middle, and high school basic education programs and international programs, and also ancillary educational services such as educational training, study trip, and overseas consulting services, So we may not be the best in international education, but we think there is enough space in this target market to support our differentiated competition. I hope this could answer your question. Thank you.

The next question is from Jessica Zhao. Please go ahead.

Hi, management. This is Jessica Zhao. My question is, affected by global COVID-19, how does the company consider its current expansion strategy for overseas markets? And could you please share with us the plan for international development landing? Thank you.

Sorry, is Deborah online?

Oh, yeah, I am. Sorry, I put on mute.

This is a question for Deborah.

Okay. Good question, Jessica. Currently, international expansion is our top priority because the education industry has become very competitive in China. Also, China government may tighten current favorable policies and regulations related to the private education industry. If the favorable policies and regulations have changed, our business may be adversely impacted. To manage the uncertainty, we have to expedite our international expansion plan. We set up a series in Singapore in April 2020 to deplore the international education market. We will expand our online services to the countries under the Belt and Road Initiative through mergers acquisition or set up new companies locally. The Singapore company will serve as an international headquarter, providing management services for our corporate network outside of China. We have focused on developing international education in the past and send Chinese students to study abroad. At the same time, we provide services to many international students for studying in China. In the future, a newly set up Singapore company will play an essential role in expanding and bridging the inbound and outbound services to the student worldwide. We are aware of the challenges we are currently facing in light of the COVID-19 pandemic and the global hostile attitude toward China. However, to support our continued growth and strengthen our market share globally, we have set up a long-term plan to strategically position ourselves and manage risks to grasp the vast opportunities in front of us. Thank you.

Seeing no further questions, let me turn the call over to Mr. Letao Kew, the company's board secretary, for closing remarks. Thank you, operator.

On behalf of the retirement management team, I would like to thank you everyone again for joining us today for our conference call. Additionally, I would like to remind you that we will be resuming the conference call economic conditions in China, competition in the education industry in China, the expected growth of the Chinese private education market, Chinese governmental policies relating to private education, no services and providers of such services, health epidemics and other outbreaks in China, the company's business plans, the company's further business development, result of operation and financial condition, Its ability to raise additional funding. Its ability to maintain and grow its business. Its ability to maintain and enhance its brand. Its development and introduction of new products. dependence on key personnel, the ability to attract, hire, and retain personnel who possess the technical skills and experience necessary to meet the requirements of its kind, and its ability to protect its intellectual properties, the outcome of outgoing relating to copyright and other intellectual property rights, and other recent details in the company's filing with the U.S. Securities and Exchange Commission. Highland Education may also make recent or oral forward-looking statements in its periodic reports to the SEC. In its annual report to shareholders, to third parties. Statements that are not historical facts, including statements about high-level education, beliefs, and expectations, are forward-looking statements. Forward-looking statements info inherent risks and uncertainties, whether known or unknown. Investors can identify those forward-looking statements by words or phrases such as may, will, will make, will be, expect, anticipate, aim, estimate, intend, plan, release, potential, contiguous, and therefore tool. These are likely tools or other similar expressions. Further information regarding those If you have any questions, please contact us through email at ir at highlandeducation.com or reach us at our IR console and send investor relations at tina.shall at asm-ir.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in Highland Education and look forward to speaking with you again next time. Officer, please go ahead. Thank you.

Thank you. Thank you again for attending Highline's Education Group's second quarter and first half of fiscal year 2021 earnings conference call. This concludes our call today, and we thank you all for listening, and goodbye.