Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Company Limited's earnings conference call for the second half and full year of 2024. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Claire Gee, the IR Director of the company. Please go ahead, Claire.

Hello, everyone, and welcome to Valme Technology Company Limited's earnings conference call for the second half and the full year of 2024. As a reminder, this conference is being recorded. The company's financial and operating results were issued in the press release earlier today and are posted online. You can download the earnings press release and sign up for the company's email distribution list by visiting the IR section of the company's website at Participating in today's call are Mr. Xiaoping Chen, the founder, chairman of the board of directors, and chief executive officer, and Mr. Sam Yang, the head of our capital and investment department. The company's management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the state public provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's annual report on Form 20F and other failings as felt with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required by law. Please also note that well-meant earnings press release and this conference call include discussion of unaudited gap financial information as well as unaudited non-gap financial measures. In addition, well-meant press release contains a reconciliation of the unaudited non-gap measures to the unaudited most directly comparable gap measures. I will now turn the call over to our founder and CEO, Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese, followed immediately by an English translation. Mr. Chen, please go ahead.

大家好,欢迎来参加我们2024年下半年和全年的业绩电话会。 我们在2024年的8月31号完成了公司的重大的业务重组, 那么标志着公司做一个重大的这么一个转折点。 In the future, we will focus on core business, in-water business. This change in strategy will drive our performance in 2024. In the whole year of 2024, Yunmi achieved a total income of 2.2 billion RMB. The operating profit reached 1.5 billion RMB, exceeding the previous company's expectations. Among them, the scale of water business increased by 39%. While achieving the scale growth, Our credit efficiency has also been improved, achieving a net profit of 62.34 million yuan. Successfully turning the loss level in the past two years, it is a sign that Yunmi is reintroducing high-quality development. With the constant improvement of public health and drinking water awareness, as well as a series of policy innovations and technological innovations, the water supply industry products continue to upgrade, and the water supply market is expanding. In the past ten years, the water supply has been deepening, and we have always tried to redefine the water supply system with the innovation of products and the use of AI technology. Our product policy includes a solution from the end of the RO series to the complete softening and purification of the house. and fully cover the needs of the users. Among them, the Modern RO series is mainly based on semi-finished business products. The products not only have multi-functional functions such as natural mineral water, hot, cold, and ice, but also support the actual monitoring of water quality and use situation in the long term. The initiative to change the system filter and the purchase of one app will bring extreme convenience to the user. At the same time, the precise water-cooled self-cleaning technology can not only greatly extend the use life of filters, but also reduce the cost of use. These products not only cover the needs of the whole family and the whole scene, but also meet the needs of diversification in different countries and regions around the world, bringing users a reliable and efficient use experience. Through the reorganization of this time, we quickly built the organization, and improved the efficiency of the business. Our full efforts are focused on the water supply industry, and fully play the core advantage to promote sustainable growth. In terms of organizational architecture, we have established . . We insist on a decentralized technology route to promote the healthy trend of mineral water. In the first half of 2024, we launched a new product, the Kunlun Mineral Water Concentrator AI. The product integrates advanced AI technology to optimize the process of purifying water. Through the innovation of AI filter mineralization technology, the beneficial ingredients can be used for a long-term effect. This breakthrough technology ensures that the beneficial ingredients in the water are basically the same as natural mineral water, allowing users to drink fresh mineral water at home. At the end of the double 11 shopping festival in 2024, our AI system will be divided into the 4th, 5th, and 9th brands on TikTok, Pinduoduo, and Tianmao platforms, and the impact of the brands will continue to increase. At the same time, in order to expand the North American market, we also launched the除夏的凹清水性Vortex series to pursue convenient and efficient user design. The Vortex series supports independent installation and wide range of products. According to the 805 version, the installation process is easy and smooth. It only takes 20 minutes to half an hour to be fully completed. The V-series's independent DIY filter design provides users with savings. The 3-to-1 pure filter pen is also equipped with a 4-year long-term filter configuration, which can greatly improve the filter effect and significantly reduce water waste resources. It also reduces the cost of frequently replacing filters for users. . . I'm a you need to say hi why should I go get my sorry I still have a test to see if you see that they go yeah I'm a symptoms of a show so that you would have got a little bit I mean she should have a show what I did you put a boom boom that can show the shot the way woman died in the end of the year don't see how does how I'm not sure what I can't make what I'm not going to ask you about that yes I don't know what I was on what I don't think it's a key to define so though and I don't know how he won't go on when Taiwan Taiwan Taiwan and joint marketing consensus to promote a healthy water concept. In March this year, we also joined hands with a Malaysian home electronics manufacturer to develop and promote the market in the field of water supply around corn. We will do our best to promote the product in the local market. In terms of manufacturing and research, Corn's water supply super factory is the most complete and automated industry chain in the industry. to achieve the full self-knowledge of core components, to fully play out the scale of efficiency, and to further enhance the creativity. We have also built our own new technologies and products, the reliable two laboratories, to meet the testing standards of different countries and regions around the world, and to provide our guarantee for our global market expansion. At the same time, as of now, our global patent application has reached 1,800, and is one of the leading industries. In the future, in the future, in the future, in the future, in the future, in the future, in the future, Taiwan 2025 We For the company It is a brand new starting point and true We will work hard from four aspects To achieve our Global Water Such a strategic vision So constantly for global users China China China The third is to continuously improve the competitiveness of cloud products, continue to develop product investment, and lead product innovation. So for global users to improve a more intelligent, healthier, and a new AI water control solution. The fourth is to continue to strengthen and strategic customer cooperation, fully play into the scale advantage of super factories, and expand our scale efficiency to achieve a significant growth in scale and profit. So it is expected that in 2025, it will bring a more objective return for shareholders and users. Thank you.

Thank you, Mr. Chen. I will quickly translate our former remarks before discussing our financial performance for the second half and the full year of 2024. Hello, everyone. Thank you for joining us today on our earnest conference call for the second half and the full year of 2024. On August 31st, 2024, we successfully completed our business reorganization, marking a pivotal milestone for Viomi as we sharpen our focus on our cool home water solutions. This strategic shift has driven our strong performance in 2024 with a full year net revenue reaching 2.1 billion RMB and income from operations totaling 156.3 million RMB, both existing our previous guidance. Revenues from home water solutions grew by 39% year over year. significantly fueling our overall business expansion. Additionally, we enhanced operational efficiency, achieving a net income of 62.3 million RMB, reversing the losses reported in the past two years. As we move forward, Valmy is back on a fast track to high quality growth and is well positioned to seize new opportunities in the market. With growing public awareness of the importance of healthy drinking water and supportive policies fostering product innovations, the home water purification market presents huge opportunities. Leveraging over a decade of deep expertise in the water purification industry, Valmy remains committed to continuous product innovation and aims to redefine home water purification through AI technology. Our comprehensive product portfolio ranges from point-of-use I.O. theories to whole-house softening and purification solutions. Our advanced features equipped with under-the-sink and installation-free products such as natural mineral water infusion, instant heating and cooling, and ice-making empower users with real-time water quality monitoring, proactive filter replacement reminders, and seamless one-click reordering through our app. Furthermore, our intelligent self-cleaning water circuit technology, supported by AI diagnostics, greatly extends filter lifespan and reduces usage costs, enhancing both efficiency and sustainability. By addressing a wide range of household water use scenarios and catering to diverse drinking water needs across the global market. WellMe provides a smarter, more reliable, and efficient water purification experience for consumers worldwide. Our August 2024 business restructure swiftly streamlined our organization, comprehensively improved our operational efficiency, and sharpened our focus on home water solution business, leveraging our core strengths to drive sustainable growth. We established the IPMIs, which unifies our product, channel, and brand strategies under a cohesive marketing framework. By prioritizing consumer experience and aligning resources with market demand, we have strengthened Viomi's brand awareness, expanded by our market share in the water purification industry. In the domestic market, Viomi leads the healthy mineral water trend. The first half of 2024 saw the launch of Viomi Quinlan Mineral AI Water Purifier, integrating advanced AI technology to optimize the purification process, featuring an in-notice AI-powered mineralized filter technology. It ensures the sustained release of beneficial minerals. This produces purified water with a mineral composition closely resembling natural mineral water, providing our users with fresh mineral-rich water at home. During the 2024 Double 11 Shopping Festival, our AI water purification ranked fourth, fifth, and ninth on the brand leaderboard of the Douyin, Pinduoduo, and Tianmao platforms, respectively, further reinforcing our brand influence in North America. we introduced the VOTAX series of under-sink RO water purifiers designed for users who value convenience and efficiency. Its self-installation feature has been well received, with over 80% of users reporting a smooth installation process average only 20 minutes. And the VOTAX tankless design and the DIY filter replacement can greatly save place and time for users. wastewater ratio and a four-year long-lasting filter lifespan, enhanced filtration efficiency, reduced water waste, and lower maintenance costs, delivering a superior user experience. This product made a strong international debut on the Kickstarter crowdfunding platform on November 5, 2024, surpassing its funding goal on the very first day with 168 backers contributing over 1,200% of the target. Following this success, the Voltax series officially commenced sales on Amazon in the US on December 16, 2024, receiving high recognition and positive feedback from strong consumer demand. To further solidify our presence in the global market, Viomi participated for the first time in CES 2025 in Las Vegas in January. Our intelligent home water solutions garnered widespread recognition from industry experts and attendees, reinforcing Viomi's reputation as a smart home water solutions innovator. In addition, we made significant strides in building strategic partnerships. First, we have renewed our agreement with Xiaomi for the next three years We are offering our commitment to stable a mutual beneficial collaboration. By leveraging our prospective strengths, we aim to boost our business penetration in China. Furthermore, we have strengthened our cooperation with Jindong, reaching a joint marketing agreement for the Kunlun series products to promote healthy drinking water. In March 2025, we forged a strategic partnership with Malaysia leading home appliance retailer. Together, we will focus on extending sales channels and promoting well-made water purification products to drive deeper market penetration in Malaysia. Well-made water purifier Gigafactory is fundamental to our manufacturing and technology development capability. Featuring a highly integrated industrial chain and highly automated production line, With 100% in-house manufacturing and the full traceable quality control system with core components, we maximize economics of scale. To strengthen innovation, we have established two major laboratory systems focused on advanced technology research and product compliance and reliability. These laboratories meet the stringent test standards of various global markets. allowing us to rapidly adapt to evolving and diversified market demands while maintaining constant and reliable product performance. As of today, Wellme has failed nearly 1,800 global patent applications, significantly outpacing the industry average. Looking forward, powered by the dual engines of advanced manufacturing and continuous innovation, positioned to further elevate our competitive edge in the water purification industry. Wellmate is embarking on a new chapter as we move into 2025, guided by our vision of global water and our commitment to providing fresh, healthy drinking water to users worldwide. To achieve this, we will focus on four key strategic initiatives. We will strengthen our domestic market presence through trading policy incentives and advancements in AI technology to accelerate product innovation, meeting consumers' growing demand for an enhanced lifestyle. Second, we will drive international market expansion, further penetrating key markets such as North America and Southeast Asia through region-specific product development, and enhance brand positioning. We aim to elevate Viomi's international market visibility. Third, we will continue to fortify our water purification product portfolio, maintaining a unwavering commitment to research and development. By leading industry innovation, we strive to provide smarter, healthier water purification solutions for consumers worldwide. Fourth, we will continue to deepen our laboratory with strategic partners, maximize the advantages of water purification gigafactory. This will enable us to achieve synergy in growth and profitability, ultimately creating long-term value for both our customers and shareholders. Thank you. That concludes our funder's remarks. I will now turn the call over to our head of capital and investment department, Mr. Sam Yang, and discuss our financial performance.

Thank you. Thank you, Mr. Chen and Claire. Thank you to everyone for joining us today. Before delving into details, I would like to address the impact of business organization on our financial results. In August 2024, we completed a strategic reorganization that involves diversity IoT at home portfolio products, excluding range hoods, gas stoves, and water heaters, which we refer to as the diversity business. As a result, the diversity business has been deconsolidated from our financials. And it's a historic financial result now reported as discontinued operations. in our consolidated financial statements. Unless otherwise stated, all financial and non-GAAP figures discussed today are presented on a continuing business basis. With that overview established, let's review our unordered financial results for the second half of 2004. We achieved Net revenues of 1,282,000,000.4 million renminbi, an increase of 42.8% from 897.9 million renminbi for the second period of 2023. This growth was primarily driven by the expansion of our home water system business. To better reflect our strategic focus, we have reclassed our revenue streams into three categories. Effective in the second half of 2024. Home water system included the revenue from our smart water purification products, water heaters, water kettles, water quality meters, and other related business. Consumables includes revenues from various water filters designed from smart water purifiers. Kitchen appliances and others includes revenues from range hoods, gas stoves, and other small appliances, as well as installation services for Biomi's products. Now, let's look at the performance across the 3 categories. Revenues from home water systems were 925.7 million renminbi, an increase of 58.2% from 585.2 million renminbi for the same period of 2023, primarily due to the increased amount of home water system products. Revenues from consumables were 136.7 million renminbi, a decrease of 24.6% from 181.2 million renminbi for the same period of 2023, primarily due to the decreased sales of water purifier files sold to Xiaomi. partially offset by an increase in demand for Viomi brand filters. Revenues from catering appliances and others were 220 million renminbi, an increase of 67.2% from 131.5 million renminbi for the same period of 2023, primarily due to increased sales of catering appliances sold to Xiaomi. Cost profit were 289.5 million renminbi compared to 294.5 million renminbi for the same period of 2023. Cost margin was 22.6% compared to 32.8% for the same period of 2023. was primarily due to a higher revenue contribution from low gross margin products, leading to a shift in the product mix during the transition period. Total operating expenses were 221.5 million renminbi, an increase of 6.1% from 208.8 million renminbi for the same period of 2003. due to higher personnel expenses during strategic transition period, as well as increased input at the market end. In greater details, R&D expenses were 67.7 million renminbi, a decrease of 9.9% from 75.1 million renminbi for the same period of 2023, meaning due to a lower depreciation and amortization expenses and personnel expenses, partially offset by increased share-based compensation expenses. Selling and marketing expenses were 140 of 14.6 million renminbi, an increase of 9.6 percent from 104.6 million renminbi for the same period of 2023, mainly due to higher online promotion fees. General and administrative expenses were 39.3 million renminbi, an increase of 34.8 percent from 29.1 million renminbi for the same period of 2023. primarily due to higher management personnel expenses, partially offset by a decrease in estimated allowance for accounts and notes receivables. Net income attributable to ordinary shareholders of the company was 57.4 million RMB, and the non-GAAP net income reached 63.8 million RMB. 3 million renminbi. This marks a significant turnaround for the same period of 2023. When we reported net loss of 29.7 million renminbi and 30.9 million renminbi, respectively. This improvement was primarily driven by strategic reorganization that involved diversifying certain laws making business and focus on more advantaged sectors to enhance profitability. Additionally, our balance sheet remains healthy. As of December 31, 2024, the company had a cash and cash equivalent of $1,026.2 million RMB. restrict the cash 141.3 million renminbi, short-term deposit of 115 million renminbi, and short-term investment of 72.5 million renminbi. Next, let's briefly discuss the key financial results for the full year of 2024. Net revenues were 2 billion, 100, $19 million revenue, an increase of 29.3% from $1,638.7 million revenue for 2003. Revenues from water, from water systems were $1,498.4 million revenue, an increase of 39.3%. percent from $1,077.9 million renminbi for 2023. Revenues from consumables were $277.7 million renminbi, a decrease of 14.5 percent from $324.7 million renminbi for 2023. Revenues from kitchen appliances and others were 342.9 million renminbi, the increase of 45.2% from 236.1 million renminbi for 2023. Cost profit was 548.7 million renminbi compared to 522 million renminbi for 2023. Cost margin was 25.9% compared to 31.9% for 2023. Total operating expenses were $424.9 million remedy, an increase of 1% from $420.8 million remedy for 2023. In greater details, R&D expenses were 142.9 million renminbi, a decrease of 4% from 148.9 million renminbi for 2023. Selling and marketing expenses were 211.2 million renminbi, a decrease of 1.6% from 214.6 million renminbi for 2023. General and administrative expenses were 17.8 million RMB, an increase of 23.5% from 57.3 million RMB for 2023. Net income attributable to ordinary shareholders of the company was 33.4 million RMB, and a non-GAAP net income attributable Ordinary shareholders of the company was 79.9 million RMB. Thank you.

Okay, this concludes our prepared remarks. We will now open the call for Q&A. Mr. Shen, our founder, and Mr. Yang will join this session and answer questions. Operator, please go ahead.

Thank you. To ask a question, you will need to press star 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Please stand by while we compile the Q&A queue. Our first line, our first question comes from the line of Jingxin Li from CICC. Please go ahead with your question.

Hey, thanks for the management and congratulations for the good performance. I'm from CICC and I have two questions about the result and I'll ask them one by one. So the first question is, after the divestment of the IoT business in 2024, we see that Wyoming focuses more on water, home water solution. So what adjustments have been made in business operation and organizational management in the second half of 2024? And what are the results so far? Yeah, that's my first question.

Yeah. Thank you, Jingxin. Let me get to your question. And the strategic reorganization we undertook in 2024 was not a sudden decision. It was a progress that began in the second half of 2023. During that time, we elevated our water business to a strategic business unit. This move was crucial. We have established a comprehensive manufacturing R&D and distribution systems that are operated independently and leverages our strength in water purification, automatically enhancing our competitiveness in this sector. By the second half of 2024, we completed a strategic organization by divesting certain IoT at home business and related assets. We decided to retain our water purification business and a part of our kitchen appliances line to narrow our focus and streamline operations. In addition, We launched the integrated product marketing system. All we can see is the IPMS. This system brings together our product channel and the brand strategy and one comprehensive marketing framework. I prioritize our customer experience and align our resources with the market demand and we have been able to strengthen our brand awareness and expand the market share in the water purifying industry. This strategic shift has a very strong financial performance. Our full year net REVENUE REACHED RMB 2.1 BILLION WITH THE INCOME FROM OPERATION TOTALING RMB 155 MILLION BOTH EXCEED OUR PREVIOUS GUIDANCE NOTELY REVENUE FROM HOME WATER CITIZENS GREW BY 37.5 YEAR OVER YEAR SIGNIFICANTLY driving our overall business growth. Furthermore, we improved our operational efficiency. Our overall operating expenses ratio declined by about 6%. And apart from the temporary increase for the personnel expenses related to the restructuring, we achieved a net income of 62 million RMB, reversing the losses that we experienced for the past two years. In conclusion, the completion of the regular organization enables us to focus more on the needs of water purification for the users and enhance our product strength to build the best-selling natural mineral water In the meantime, we will accelerate the channel expansion and globalization to advance the vision of global water. Thank you. Next question.

Okay. Yeah, thank you. And my second question is, could you give us the breakdown of the home water solution in 2024? And how much did the volume and price increase respectively? And is there any new product plans for 2025? Yeah, that's my second question. Thank you.

Good question. Let me just answer your question. To better reflect our strategic focus, we made some changes on how we categorize our revenue starting in the second half of 2004 firstly is our home water systems which include our smart water purification products water heaters water kettles and the water quality meters and similar items this category makes up about a 71 percent of our total revenue and next we have the consumables This is actually we bundled cells in the water purification, and also we sell it separately. And this part attributed to 30% of the total revenue. And the last, there's teaching appliances on the orders. This includes the revenue from range hood, gas shelves, and the small appliances, as well as installation services for the VMA products. It brands about 60% of our total revenue. On our positive note, we kick off our Quinlan series water purifiers in the first half of 2024. With this middle to end to high actually positioning, we have a very strong ambassador. emphasis is on the healthy drinking water, that is the mineral water. And we have seen a noticeable increase in our DSP. Looking ahead to 2025, we are excited by the deepening of our gold strategy. In the domestic market, we keep refining middle to high-end product line and focus on healthy and continue to enhance the Quinlan series. During the double 11, our AI water purifier ranked fourth, fifth, and ninth on the brand boards of the Douyin, Pinduoduo, and Tmall platforms, respectively. further reinforcing our brand influence. On the international side, we plan to enhance our product line up and focus on customized development tailored actually to the North America's customer and also cover the Southeast market. This includes adding new features like ice making and instant cooling among artists. At the same time, we expand to other key international markets. We're also localizing and promoting our existing product series to better meet the customer needs for the local. Thank you.

Okay, thanks for the management.

We'll now move on to our next question. Our next question comes from the line of Brian Lantia from Zach's Small Cap Research. Please go ahead. Your line is open.

Good evening. Thank you. If I could ask a couple of questions on the expansion strategy. I guess first, how comfortable are you with the strategy in the U.S.? ? And then second, regarding the expansion into Southeast Asia, have you named the partner, the home appliance partner in Malaysia? And I guess second, will there be additional, will that be the strategy targeting additional Southeast Asian countries going forward?

Thank you. Yeah, thank you. Actually, because our new vision is the global water, so the global water is our new strategy. We choose to enter the U.S. market, and also we have entered the Southeast market. The first step step, actually, we successfully launched the products, actually, the top eight on the Kickstarter. That is a great success. And we achieved 10 times our expectation. And following that success, we introduced two products to Amazon. and which has reached high recognition from the customers. And it's a continual performance. It's good. And talking about the other areas, about the sound feast, we have established a strategic partnership with the biggest retailer in Malaysia. And this will bring us ongoing good performance, we believe. And with that strategic cooperation, and we are going to launch more and more new products to that new market.

Okay, great. And have you identified any long-term gross margin goals for the different revenue categories, for example, hot water systems versus kitchen appliances and consumables. I'm assuming in the long run consumables will have the widest margin as the Gigafactory gains efficiency, but I'm not sure if you've released or identified any of those gross margin goals in the long run.

Yeah, gross margin is crucial actually. As you may note that we have obtained the average gross margin for the industry, the water purifier. And we believe this gross margin will become better this year because of the product matrix actually we are going to launch. And as I explained earlier, that we are going to launch more and more Quinlan series, which has good gross margin for the customer and also for the market. Also, we have the consumables. And you know, this market is, the gross margin for this category you know, it's very decent. So we are going to keep and talk about the others. I think we are going to meet the average of the industry. Thank you.

Great. Great. Thank you.

And that concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.

Okay, and Mr. Chen would like to give a conclusion. Mr. Chen, please go ahead.

Thank you very much for coming to our conference. This business will then go through the end of 2024. After our company's business reorganized, the business of clean water is continuously changing, so we will do a few things. The first one is that we will continue to use AI to create a higher quality of water. The positioning of this brand is the first one. The second one, we will launch this kind of mineral water that contains mineral water. This kind of Kunlun, this kind of Kunlun, this kind of natural mineral water, this is the second goal. The third one is that we are constantly In 2025, we will invest a lot of resources in this aspect to build a strong brand, and to improve the brand's reputation. The fourth aspect is that we will continue to build our underwater super factories, so that they can continue to grow and become the world's leading underwater super factories. The fifth aspect is that we will continue to expand to the United States, Southeast Asia, and other major globalized countries. We hope that in the next few years, our globalized business will continue to grow. This will bring long-term growth potential for the company's performance and shareholders. To sum up, Jinsui is a place where you can drink every day, so it is a business that can go through the economic cycle and can do business for 100 years. So this is a good business.

Okay, I'll briefly translate our founder's remark, conclusion. And thanks to everyone attending our conference call. Right after we complete our restructuring and fully focus on the home water business, we are using AI to upgrading our brand positioning. And we will invest more in the brand recognition and promotion. to increase our brand recognition globally. And about our water purifier Gigafactory, we have the most integrated industry lines and the most automated production lines among the industry. And we will continue to maximize the advantages of our water purifier Gigafactory. And also, we will keep fast speed on our oversea extension in the major markets like United States and Southeast Asia. And in conclusion, home water business is a very decent business and it's sustainable. It's to meeting the healthy drinking demand of mankind in a sustainable way. So we think it's the business everlasting for like a hundred. That's all. Thank you. And thank you once again for joining us today. If you have any further questions, please feel free to contact us through the contact information on our website or our investor relationship consultant, the PS&T Group.

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.