Viomi Technology Co., Ltd

Hello, ladies and gentlemen. Thank you for standing by for Viomi Technology Co. Limited's earnings conference call for the second half and full year of 2025. 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 Realme Technology Company Limited's earnings conference call for the second half and full year of 2025. As a reminder, this conference is being recorded. The company's financial and operating and posted online. You can download the earnings price release and sign up for the company's email distribution list by visiting the IR section of the company's website at ir.biomi.com. Participating in today's call are Mr. Xiaoping Chen, the founder chairman of the board of directors and the chief executive officer, and 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 the company's discussion will contain forward-looking statements made under the state-covered provisions of the U.S. Private Security 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 the Form 20 Act and another filing is filled with 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 includes discussions on an obvious gap financial information as well as and audited non-GAAP financial measures. In addition, Valnet's price release contains a recommendation of an under-audited non-GAAP measure to an audited most directly comparable GAAP measure. I'll now turn the call over to our funder, Mr. Xiaoping Chen. Mr. Chen will deliver his remarks in Chinese, forwarded immediately by English translation. Mr. Chen, please go ahead.

Hello, everyone. Thank you for joining us

We achieved a sales revenue of 9.5 billion yuan.

The average net profit is about 2,125 million yuan. From last year, the core business base is still stable. Last year, we achieved a total sales revenue of 24.3 billion yuan. foreign foreign Multi-dimensional users need water to make technical breakthroughs. With AI technology, we will use it to bring better product experience. We will become the world's leading water technology company. In the North American market, our Amazon channel is outstanding. In the second half of last year, we made a three-digit growth. In the black five, the 19th place in the water category. In the bottom five, the fourth place in the global news market. The high-end flagship mineral water machine, Master One, has further enriched product evidence. In the Southeast Asian market, we and Malaysia's main channels are working together to achieve strategic cooperation and continue to evolve. In order to introduce a small-scale, large-scale mining and intelligent function of Inno mining and mining equipment. In terms of brand recognition, we invite famous actors and singers from different countries to be brand ambassadors. Go to the online press conference, go to the Jishui Supermarket, and buy the brand image of technology health. In April of this year, we will introduce a new brand image, a high-end brand image, Taiwan Taiwan Taiwan Taiwan Taiwan Europe, Southeast Asia, and other Taiwan-based markets to provide comprehensive supply chain support. As of the end of 2025, the global patent will break through 1,950, which is estimated to be four countries and regions. In the field of AI intelligent computing, precise regulation of mining materials, and intelligent self-sufficiency, we will build a systematic technical foundation for global business development and establish a solid foundation. In terms of shareholder feedback, in July 2025, we announced a special share of US$0.88. In October of this year, the company received a return of $20 million worth of shares in the first round. By December 31, 2025, a total of 1.03 million shares were bought back, with a total value of about $2.5 million. In the recent performance announcement, we have further announced that we will send special shares of $0.066 to each ADS, with a total value of about $3.1 million. Thank you for your long-term trust and support. We will continue to grow with real estate and shareholders in order to provide long-term value. In 2026, we will carry out Global Water's strategic goals more strictly. In the following four aspects, we will achieve breakthroughs. The first one is to focus on overseas. We will upgrade the strategic market and expand to more countries and regions. We will rely on the short-term advantages of water-intensive factories. We will continue to promote cultural new products. We will increase the impact of the brand to more markets. Secondly, we will continue to follow the difference-making route. The country continues to strengthen the health and mental health of the problem series, and the development of technology and product innovation will significantly improve the quality and enhance the industry status in the field of water. Third, water technology leadership. Increase the deep integration of AI and technology, allowing technology innovation to become the core engine of the company's transition cycle and continuous growth. Fourth, deepening cooperation. Continuous deepening cooperation and further cooperation with full-scale strategic partners to release the super-capacity of water, the scale effect will clearly become a long-term focus. Thank you, Mr. Chen.

And I'll quickly translate our funder's remarks before discussing our financial performance. Hello, everyone. Thank you for joining us today on our earnings conference call for the second half and the full year of 2025. In the second half of 2025, amid the face down of national subsidies gained for home appliance trading and the company's strategic investment in oversea market expansion, new product development and brand building, we delivered a total revenue of 951 million RMB and a net income attributable to ordinary shareholders of the company of 21.2 million RMB. For the full year, our core business remained solid. achieving total revenue of 2.4 billion RMB, representing the year-over-year increase in 14.6%. Net income attributable to ordinary shareholders of the company stood at 141.6 million RMB, with a net profit margin of 5.8%. Over the past year, our global water strategy has continued to achieve milestones highlighted by the establishment of a multinational professional team covering North America, Southeast Asia, and Europe. Empowered by a global perspective across R&D and market expansion, we have constantly achieved technological breakthroughs addressing users' diverse drinking water demands. By leveraging AI technology to enhance user experience, we are establishing a well-made as a world-leading water technology company. In the North American market, our Amazon channel delivered an outstanding performance in the second half, achieving triple-digit growth in sales on a sequential basis. During the Fast Friday promotional season, our products ranked 19th in the water purifier category and 4th in the EnderSync RO technique segment. Our premium flagship products, the Master Wine Mineral Water Purifier further enriched our product portfolio. In the Southeast Asia market, we continue to deepen our strategic cooperation with offline channels in Malaysia through the launch of the Compact Inno Mineral Water Dispenser, tailored for the local market and featuring both mineralization and cooling functions. On the brand building front, we are engaged famous actress, and singers from different countries to serve as brand ambassadors. These participants in offline launch events and visit our facilities, strengthening our brand technology and health image. In April, 2026, we will unveil our new brand series at the WQA convention in Miami, showcasing our latest AI technologies and innovations as one of the most influential professional events in the global water treatment industry and presenting our redefined vision of better water to partners in North America and around the world. In manufacturing and R&D, we kept boosting our competitive edge. We achieved a key milestone in the global expansion of Valmet's water purifier Gigafactory, commencing full operations of our overseas premium production line. This production line integrates module functions such as instant heating and cooling and ice heating, providing agile supply chain support to meet differentiated needs and the markets in North America, Europe and Southeast Asia. As of the end of 2025, our global patent application has surpassed 1,950 spanning 14 countries and regions. We have built highly competitive technological capabilities in areas such as AI-driven water quality algorithms, precision mineral control, and intelligent self-cleaning, laying out a solid foundation for the continued expansion of our global business. In terms of shareholder returns, we declared a special dividend of 0.088 U.S. dollar per ADS in July 2025. In August of the same year, we authorized a new share repurchase program of 20 million U.S. dollars. By the end of 2025, we had repurchased a total of 1.03 million ADS, amounting to approximately 2.5 million U.S. dollars. In our recently purchased and published earnings release, we declare another special dividend of 0.066 U.S. dollars per share with an aggregated amount of 31 million RMB for shareholder returns as a gesture of gratitude for the long-standing trust and support of our shareholders. We deeply value the journey we take with our shareholders and remain committed to creating long-term value for them. In 2026, we will pursue our global water vision with greater determination targeting breakthroughs in four key areas. First, for overseas markets, we will deepen our precise and core strategic markets such as North America and Southeast Asia. We are actively expanding into more countries and regions, leveraging the agility of our water purifier gigafactory. We will continue to launch new localized production, extending our brand influence into broader markets. Second, to advance our differentiations in the domestic market, we will further strengthen the health-centric positioning of the Quinlan series with its alkaline mineral concept. Third, on the technology front, we will deepen the integration of AI across water purification scenarios, making technological innovations the co-engine that enables Wellme to navigate market cycles and achieve sustained growth. Fourth, we will continue to strengthen collaborations with global strategic partners, fully leverage the scale effects of water purifier gigafactory to elevate both scale and efficiency. Through this committed long-term approach, Wellme will continue to create value for global users, and deliver sustainable return to our shareholders. Thank you. And that concludes our funders' remarks. I'll now turn the call over to our head of capital and investment department, Mr. Sam Yang, to discuss our financial performance. Thank you.

Thank you, Ms. Chen and Claire. Thank you to everyone for joining us today. Let's take a look at our unordered financial results for the second half of 2025. We recorded net revenue of $950.6 million RMB, decrease of 25.9%, from $1,282.4 million RMB for the same period of 2024. primarily due to the decrease in home water systems. Now let's look at the performance across three categories. Revenues from a home water system were 628.2 million RMB, a decrease of 32.1% of 925.7% meaning remedy for the same period of 2024, primarily due to the water pure price. Revenues from consumables were 112.2 million remedy, a decrease of 17.9% from 133.7 million remedy for the same period of 2024. Primarily due to the decreased sales of water purifier filters to Xiaomi. Revenues from kitchen appliances and others were 210.2 million renminbi, a decrease of 4.5% from 220 million renminbi for the same period of 2024. Primarily due to the reduction in orders from Xiaomi as well as some reduction of Viadmi brand product in this category. Cross profit were 223.8 million renminbi compared to 289.5 million renminbi for the same period of 2024. Cross margin was 23.5% compared to 2017. 22.6 from the same period of 2004. The slight increase in gross margin was merely due to the elimination of the impact one-off cost incurred during the divestment of certain IoT at-home business and assets. Total operating expenses were $248 million, an increase of 12%. from 221.5 million RMB for the same period of 2004, due to increase selling and marketing expenses, and a partial offset by decreasing GMA expenses. In greater detail, R&D expenses were 76.3 million RMB, an increase of 12.7. from 67.7 million RMB for the same period of 2004, mainly attributable to an increase of investment in new product development. Selling and marketing expenses were 148.6 million RMB, an increase of 29.8% from 114.6 million RMB for the same period of 2004. mainly due to an increase in brand promotion investment, as well as higher personnel costs resulting from channel expansion. DNA expenses were 23.1 million renminbi, a decrease of 41.2% from 39.3 million renminbi for the same period of 2004, primarily due to a decrease of Inquiry composition costs . The income was 21.2 million renminbi. And then the non-GAAP net income was 28.2 million renminbi. Additionally, our balance sheet remained healthy. As of December 31st, 2025, the company had a cash and cash equivalent of 806.6 million renminbi, restricted cash of 164.4 million renminbi, short-term deposit of 258 million renminbi, and short-term investment of 82.6 million renminbi. Next, let's briefly discuss key financial result and audit for the full year 2025. The revenues were 2,428.2 million RMB, an increase of 14.6% from 2,119,000 RMB for 2024. Revenues from home water systems were 1,686.6 million RMB, an increase of 12.6% from 1,498.4 million RMB for 2024. Revenues from consumables were 235.4 million RMB, a decrease of 14.2% from $277.7 million revenue before 2024. Revenues from catering, appliances, and others were $500. and 6.2 million RMB, an increase of 47.6% from 342.9 million RMB for 2024. Cross-profit was 615 million RMB compared to 548.7 million RMB for 2024. Cross-margin was 25.3% compared to 25.9% for 2024. Total operating expenses were 529.4 million RMB, an increase of 24.6% from 424.9 million RMB for 2024. In greater detail, R&D expenses were 165.6 million renminbi, an increase of 15.9% from 142.9 million renminbi for 2004. Selling and marketing expenses were 277.7 million renminbi, an increase of 31.5% from 2014. 11.2 million RMB for 2024. GNNA expenses were 86.1 million RMB, an increase of 21.6% from 70.8 million for 2024. Net income attributable to ordinary shareholders of the company was 141.6 million RMB, and a non-GAAP net income attributable to all the shareholders of the company was 155.7 million RMB. Thank you.

This concludes our prepared remarks. We will now open the call for Q&A. Mr. Chen, our founder, and then Mr. Sam 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 and 1 on your telephone and wait for your name to be announced. And 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 for the first question. First question today is from Jin Yu Zhang from CICC. Please go ahead.

Okay. Good evening, well-made team, and thank you very much for hosting this call and giving me the opportunity to raise questions. So I have three questions covering brand development overseas strategy and profitability growth. So first and foremost, could you share the overall performance of the company's self-owned brand, Valmy, in 2025? And additionally, what are the key investment priorities and initiatives for Valmy's brand building this year? Thank you.

Thank you, Jin Yu. I will speak Chinese first, and then Claire will help me translate. If we look at our free brand in 2025, our scale will mainly be in the domestic market. In fact, in the entire online channel, our ranking is relatively close to the money in the Middle East. Our annual ranking is 10th. In addition, in Amazon in the United States, in this channel, our gold and water ranking is ranked 19th. If we look at it in more detail, if we look at the North American share online and offline, we will use different brands and positions in the future. To improve the volume of our brand, we will participate in the WOC of the United States of America. Then we will also attend the WQA exhibition in Miami, USA. We will use a brand new product and a brand new series. This is the first stock that we explore offline in North America. It is also a brand new definition of Better Water that we will present to our global partners in North America.

Okay, and to answer your question, in 2025, our brand revenue was primarily from domestic online channels, and we have ranked as 10th place among the annual brands listed on Jindong, and we also ranked 19th place in sales on Amazon USA, which is a great progress. And moving forward, we will adapt a differentiated strategy in North America, by launching distinct brands and positionings on online and offline channels. In particular, in April, we will participate in the World of Coffee Fair in San Diego, and we will debut our new brand series at WQA convention in Miami. And this marks the first step into North American offline market and showcasing the partners across the U.S. and the world. a redefined vision of better water. Thank you.

Thank you, Sam and Claire. It's very clear. So here moving to my second question on overseas expansion. So Wyoming has successfully entered the U.S. and the Malaysia markets. So what are the differences in your markets strategies between these two regions? And what key challenges have you encountered? And how do you plan to mitigate them? And also, could you outline the overseas expansion goals for 2026? Thank you.

Good question. Let's answer the second question. In the U.S. and Malaya, we have set up a team for this year. In the United States, we focus on Amazon's own channels. So we launched a series of new products in Amazon called RO. This is selling well. Next, we will launch a series of new products for North American offline. It will cover the whole house system. It's not just an offline RO processor. In Malaysia, we mainly focus on offline. For offline, its product form is mainly based on the platform. Of course, Malaysians prefer to drink ice water, so we will add ice water as a function. It will be more in line with the local drinking water demand. Then we will further expand offline cooperation partners and the product chain. Of course, the overseas market has a lot of uncertainty. Of course, geopolitics is also And to answer your question,

We have built local teams for both the United States and Malaysia. And especially in the United States, we launched the Brownie-branded Endersink water purifiers on Amazon, which is the online channel. And next, we will bring new brands and products tailored for the U.S. offline market in the second quarter. And this will cover not only the end-of-sink products, but also the whole house of nutrition systems. And in Malaysia, our focus is offline, with countertop units of the main product format, adding features like ice and cold water that match the local drinking habits. And that will extend more offline partnerships and diversify our product lineup. For the overseas markets in total, in the future, there are still plenty of uncertainties overseas, and the geopolitical tensions continue to create highways. Still, we see strong opportunities globally, and we believe we are well positioned. That's why the global expansion will remain a key part of our long-term strategy. And for 2026, we expect triple-digit growth in the overseas revenue. Thank you.

Yes, very clear. Thank you, Sam and Claire. So my last question comes to the company's profitability. Well, we see the company's profitability improved notably in 2025 after focusing on the water business. So for 2026 and moving forward, like next two to three years, what are the core pathways for further enhanced profitability and sustain this positive momentum? Thank you.

我先回答一下,就是关于这个呢,我们主要是有三个途径吧, First of all, we want to expand the scale of the free brand overseas. Currently, our profit margin is at an average level. The scale of our free brand is not very high. We hope to expand the scope of the free brand overseas. This is conducive to the improvement of our free brand, which can further improve our profitability. The second is the improvement of the revenue of the free brand. This is a driving force that can continuously improve profitability for a long time. The sales of our free brand is constantly increasing. It is expected that in the next one to two years, there will be a continuous revenue of revenue. Then the third is that we will further enrich our product statement. Then we will put the product on the table, including this different kind of functional machine, including even, for example, this kind of soldier and this kind of product with complex functions. Okay, to translate the answers.

There are three main paths. The first is extend overseas. and accelerate the growth in our Valmy branded business. Currently, our margin is still on a low level, mainly because our Valmy branded products still mix up a relatively small part of the business. So by pushing into the international markets and growing the shares of our own branded sales, we can improve the profitability. And the second path is about consumables revenues. The consumable revenues from our own branded products will be a long-term driver of the margin improvement. As more people are using Xiaomi water purifiers globally, the consumable revenues will start to kick in about one to two years after the equipment sells and we start to see the change. We will broaden our product lineup, which is adding more countertop options like ice makers, multifunctional countertop water dispensers, and higher-margin whole-home filtration systems. These new categories will help us reach more customers and build a stronger, more complex product portfolio for the global expansion. Thank you.

Yes, very clear. Thank you very much for your time and detailed answers. I have no further questions. Thank you.

Thank you. Well, now take the next question. This is from Shi Jingxing from CMS.

Please go ahead. The first one is to analyze what we saw in the second half of last year. After the drop in the stock market, the income has gone down. In fact, this year, in the second half of this year, we are still facing a high rate of growth in the second half of this year. So maybe I want to refer to this year's drop in the stock market. Under the pressure of the drop in the stock market, our growth is this kind of source and dynamic energy. So help us do another survey and analysis. And then there is a specific question in this question. Okay, I'll quickly translate a question first.

Can you analyze the impact of the national subsidy reduction on the domestic market, especially when we see in the second half of 2025, the negative impact has caused the revenue decline? And can you forecast the future impact and offer us some guidance? And also, we recently noticed that the fees and the business development. Can you offer some heads up about the top-line contribution about cooperation with China Gas, this kind of business development? Thank you.

Thank you, Ms. Shi. I'll probably answer first. I'll translate it later. Okay. In our view, in the year 2025, there will be a positive impact on the water purifier, especially in the first half of last year. So this year, compared to the first half of last year, it will be better. But if we look at the quality of the water purifier, there is actually another level of consideration, which is that the quality of the water purifier is relatively low. In China, its demand has not been released yet. Therefore, we expect that the entire industry will return to normal in 2026. The product of water purification is actually resistant to the summer period. We believe that more and more consumers will choose water purification. This trend should be irreversible. In 2026, we saw that water purification was no longer available at the national level. So, as you can see, although some brands may show that there will be about 15% of such subsidies, some brands have actually done it. For us, we have stopped this step. In addition, Mr. Shi mentioned the cooperation between us and these gas companies, such as Zhong Ran, Xin Ao, and other gas companies. We think this kind of collaboration is actually a brand new type of collaboration mode for mutual benefit. Because first of all, they have a lot of exhibition halls and services in China. They can basically cover nearly 50 million households. And the scene used is also fully installed, so it is particularly consistent with the camera we are using. We think that the quality is also very high. Okay, I'll quickly translate the answer.

As you can see, the impact of the national subsidy on water purifier is obvious in 2025. And due to the high base last year, the domestic market will face challenges in the first half of 2026. For products like water purifier, however, where penetration is still relatively low, so the customer demand is still growing, we expect the 2026 to return to the category's normal growth rate, growth pace, and remain relatively resilient, even consumer spending softens. As we see, more and more people are choosing to use water purifiers, and we believe that trend is irreversible. And starting in 2026, water purifiers are no longer covered by national subsidies. You might see some brands still offering 15% off on online commerce platforms, while others don't. We didn't offer that percentage off. And we have faith in our product competitiveness. And to answer your questions about the corporations with the gas companies, we recently reached the corporation with the China Gas and the Yen and Energy, companies like this. And the way we see is we are exploring new partnership models. with this company and their showrooms and the service centers across country reaching over 50 million household users. And both of our products rely on, highly rely on the installation survey support and the production scenarios fit perfectly with underwater purifiers and the product categories complement each other. This gives us an efficient way to enter lower tier markets. And 2026 will be a pilot year for the partnership. This is expected to be a great opportunity for both parties. And we expect it will bring incremental growth. Thank you.

Let's start with the second question. Okay. The second question is, I also noticed that we are now, first of all, going back to the interest rate. Thank you.

Good question. The question may be similar to that of Jingyun. Let me add a little more about this question. In fact, in terms of the company in 2026, we have a few points to do. The first is to continue to expand the scale. The main way to expand the scale is through the expansion of the overseas market. especially North America and the Malaysian market, so that we will have more products and will enter more channels. The second thing is about what we will do in these three ways. In these three ways, we will continue to increase our income. In terms of income, In fact, in the past one or two years, we have sold a lot of stock. As the year goes on, our revenue will continue to accumulate, and the profit will be guaranteed. This is one of the reasons. The other reason is that we have improved in terms of the scope of our free brand. In the past, the scope of our free brand was not very high. So we hope that through this kind of overseas expansion that I just mentioned, and this kind of communication with the brand, we can improve the ratio of our brand, and further improve our share, and then improve our business capability. And then the last one is about our product. On the whole product line, our original product is actually based on subwoofers. The subwoofer, Our horsepower is actually at the average level of the industry. We will now launch some high horsepower products. These high horsepower products include what we call the whole house. And this kind of compound function, this kind of platform area. We will increase the unit price and horsepower. So we hope to say through these. A few combinations of actions can make our horsepower have a guarantee. The profit has a good performance.

Okay, I'll quickly translate the answer to you. This is a similar question to one of the previous questions. And the first one is we will extend our oversea market scale, especially in the United States and Malaysia. And we will use more diversified products to enter in more channels. For example, for the United States, we will have offline channels with new brands and new products with higher margins. And the second strategy is to increase the consumable revenues. As you can see, the consumable revenues has a very promising guarantee of the improvement of profitability. And we have our own branded water purifier cells have increased during the past few years. And we see the trend of consumable revenues to kick in after one to two years after the equipment sells. So this will be a long-term driven factor for the margin expansion. And thirdly is to improve our own brand revenue contribution by both oversea expansion and the product portfolio expansion. And lastly is we will have more diversified product line. As of today, we still Most of our revenues come from the under-sink water purifier product format. And our profit margin is within the industry level. However, we will extend more diversified products with higher profit margins and ASPs like the whole house water filtration systems and the countertop products. products equipped with diversified functions like cooling, ice making, and so on.

Thank you.

Thank you. We'll now take the next question. And this is from Brian Lantier from Zach's Small Cap Research. Please go ahead.

Thank you very much. Most of my questions have already been covered. I just wanted to say I'm encouraged by the move to offline distribution in the U.S. And then just sort of big picture, looking out The impact of the subsidies is significant, obviously, in your six-month results. But I think if you look year over year, you have a 14% top-line growth rate. If I'm looking out over the next three to five years, is that sort of what you view as the normalized growth rate for the business, 10% to 15% top-line? Yeah.

Let me ask you a question first. We see the impact of the national stock market on the overall impact of 2025. But we also see that the overall income of 2025 is an increase of more than 14 points. I would like to ask, how does the company see the growth of the company in the next three years or a longer period of time?

Because some of our investors speak Chinese, so I will answer in Chinese. Later, I will answer in English. We are now looking at the normal growth of the industry. In fact, it is at a high three-digit number. If we look at our free brand, we should be higher than the industry. There are mainly several reasons. The first is We are constantly improving our brand's brand power. And then we are further expanding in the international market. And then the other part is that our growth is with big clients. That is, we are talking about non-mini business. That is, our non-mini brand business is the same as the big clients. For example, like Xiaomi. Okay, I will translate the answers to your question.

According to our estimation, we see the industry's normal growth rate would be at a high single-digit level without the impact of the national subsidy and so on. And while the Wyoming brand growth rate will be higher than industry, mainly because driven by the enhancement of our brand strength and the expansion of our international market growth. However, another major part of our business revenue is our major clients, key clients of business, such as Xiaomi. This will be aligned with the key accounts, their business performance. And in the current environment, the growth is the pressures. So overall, we anticipate that the company has the potential to enter into a nominal growth rate of a low double-digit growth in 2027. Thank you.

Great. Thank you.

That's all I had.

Okay.

Thank you. Thank you. 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. Thank you once again for joining us today. If you have further questions, please feel free to contact us through the contact information on our website or our investor relationship consultants PS&T Financial Communications. Thank you.

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