spk_0: the morning and good evening ladies and gentlemen then people standing by and welcome for beef and first quarter twenty twenty one earning come from at the time overtook the pen are and listen only mode following management prepared remarks be will be a q and a fiction with us today are johnny chow be and chairman and p are and gloria fan chief financial officer or today agenda johnny will give a brief overview of business and operational highlight been korea will and why in the details of the financial result following the prepared remarks you may opt your question
spk_1: we've nope of coal of author being with costed on bit and i always thought at ihop dog be dash think dot com a replay of the call will be available after the call
spk_0: and then bit representation of author available on the i always thought before it again i will rape of a public statement on behalf of be bank today's discussion will contain forward looking statements the forward looking statements are based on management current expectation they have inherent risks uncertainties and other factors all of which are difficult to predict and many of which are beyond management control
spk_1: the company that not undertake any obligation to update any forward looking statements as a result of new information future of him or other equipped and required under applicable law
spk_0: leave overnight that britain financial measures that the company uses on the school are raped on a non get basis
spk_1: that you have a bit job adjusted ebitda and on gaffney law
spk_0: the get results and the reconciliation of gap to the gap measure can be found and beef and earning prefer relief
spk_1: finally please note that unless otherwise stated all the forgive mentioned during the conference call aren't are in bay
spk_0: now i would like to chemical either to johnny chow i'm an empty are of beef and johnny please go ahead
spk_2: beg your rear the morning and a good evening everyone welcome and thank you for joining our school oh push quarter road reflected a mix of both the proverb brought about by one november point four leaf reform plan and the ongoing drawn do we have to briefing oh is that true thing open the refocusing coil it every day for your free the bright yellow you are and global that's reflected in the a problem growth along with strong growth bodies bridge we continue to solidify our even provision the free market while focusing our efforts are high margin a call with approach management we also getting the brought you're helping you used for your market soon global despite called unlocking of them the clinic over a quarter we'll go at a recent development
spk_3: with breath
spk_2: we continue to focus on optimizing poor structure improving their what they believe and today as well as having good quality look where you're going to school while the result will be actually or not only visible from our emotional result do they help you improve the underlying problem fundamentals of our network and the we will further third of action could probably a return who have bit of later at you do look order talk a lot of increase by police reports of day over year and world modeling concocted by three point two of the on due to a decline in a cheap a possible or seventeen point six percent year over year partially offset by a decreasing average caught a powerful of the able to pinpoint what field are you while our strategies on the right track the rapidly evolving competitive landscape you're quite a few quick and upgrade of our action up our federated measures will focus on their working for the better the and of good quality by optimizing the structure of color customers a franchise the other in order to create a clear path cool sustainable profitability pray once again delivered a strong quarter with a higher the industry average growth rate improving probability we continue to emphasize the economist at back of the free for the it targeted by for leadership position and recognition they improve operating efficiency for a large increase by eighty one percent year over year in the for twenty twenty one average course but car and a of people can decrease by golly point that of the year and by plane or of they'll be able to aggressively
spk_4: or free
spk_2: mission our efforts shooting the have to the quality of produce hundred overload image we right the first fine out that the law or franchise way that works looking ahead will keep investing in our network well the thing off good quality been having couple of the faction while maintaining it a strong case for all generating generation competitive february moving to back upright chain management
spk_5: the total number of auto fulfilled
spk_2: like bell operated a bunch of the clout live feed into one how increase by gave up on top of that and thirty point that me over year respectively the pure one rose bargain with a pleasure man with by point four percent computer with the papers that you have been pure or twenty one benefiting bomber but if continuation of leg of the low modular car as well as improve operating efficiency
spk_4: well you're forward
spk_2: we all average our spread of grey operation and project outcry from acquisition efforts are leading customer rain which not only bring incremental business opportunity are also helps up to strengthening our brand awareness we'll also promote value added good with it in terms of those things and emanuel moreover court order business is another key area get we mainly hardly at all we have now operate three where i live in you can them and one top from getting our threatened that will help the seizure in china as out the gate rebuilding crime lonely copious row we will remain focus on quality road and profitability and deliver further improvement in our approaching business
spk_6: he the second half of the year
spk_2: best global couldn't pin you could spend both court order for the said adding southeast asia expect market with it it's better a strong module improvement in a bush supporter of twenty twenty one ah to bottom in southeast asia increased by two hundred forty up with the yoga year to go deep on a meeting global growth model significantly improved by twenty two point two percent a pun year over year due to a bad economics of scale if your cargo country to skill it's of all cropping broker your model it'll on march thirty first twenty twenty one the number of the register drivers are you cargo mobile apps increase the by i'm going to affect your year to three hundred forty eight thousand in the foot coral point only one that total number of transactions on the trucking brothers crap one increased by fifty four fifty five i hope that you'll the year
spk_7: who are hundred eighty six thousand
spk_2: in summary oh no we've acted upon around of bread to take approximate for collateral we have a thought it clear he cheated direction pocketing the thing double development uploaded by the attractive growth perspective of commerce and a unique value proposition of our integrated mock projects ocean and logistics bonuses we are fully dedicated who are they singing our company too long term upset
spk_8: power like three current the pull over for the a folklore we have to walk you through our for for the financial will have was thinking johnny and the hello to everyone in the fourth quarter of two thousand and twenty one a revenue read that point five billion rp increasing thirty percent year over year while now what could come in when they they aren't be as lot initiative white red paint kind to materialize at the bottom line i'll focus today continue to the on cost reduction of caught the entire have been asia including you in a cop structure optimization put back and very as well as the streamlining up at via me and as we navigate to the current environment we are making barrier that he did the evaluation and are prepared to take appropriate action to thin can balance sheet and liquidity you support of object we of people focusing plant in particular we are looking at the financing options in relation to certain about that and unit and the will provide details necessary or appropriate if any definitive that the container we continue to maintain a healthy combined our of cash cash we've covered is judy cash and shortening investment a be arm be worth more encouraging three the high chain management cargo and the capital recommend a cheap positive operating cash flow during the first quarter which what the traditional flag be that and operating cash flow phone or and improve significantly while the to the two thousand and plan i will now provide a brief review of after wasn't two thousand and twenty one financial results given the limited time on today to call i won't be presenting without agree the is the financial highlight i encourage you to read through all cracked release issued earlier today for further details we the into writing environment are both possible you one would negative in one hundred and ninety three million rmb compared to ninety two hundred and thirty eight million rmb in quarter of two thousand and twenty bookmarking percentage of with ninety three percent compared to ninety four point eight percent you have been of two thousand twenty
spk_6: adjusted ebitda apple continuing operations what you want with neck and three hundred ninety seven million rmb compare to negative five hundred and three million rmb of the him period of two thousand and twenty nine movie on to keep financial highlight for our business unit
spk_9: the year over year baker's back to be scrapped we have been increased by ten percent year over year to three point seven billion army in the first quarter with two thousand and twenty one primarily due to our thirty three point six percent year over year increase in proper it partially offset by seventeen point eight percent year over year everything
spk_8: the proposal adjusted ebitda apple back with neck and few hundred eleven million rmb compared to ninety one hundred ninety million rmb are the same period last year best way into a leadership position during the border
spk_6: you are grabbing people are approximately seventy one creeping year over year to one point two billion arm be primarily due to a eighty one percent increase increasingly volatile
spk_8: do what partially offset by point four percent ppp air pizza can i get it ended up or back to break with negative and now on come here too many people one hundred eighty five mean there are people can hear that allow year
spk_6: you are revenue for back attach a management increase of happening in a contest the year over year to one hundred what he a new the army
spk_8: i just the eighty that with the fighting management with two hundred thousand rmb up here to negative thirty four million on for the same period last year revenue for that global increased by one hundred fifteen percent year over year to two hundred fifty million rmb primarily due to drunk will the impact of ireland in south east asia adjusted ebitda for best global with nephew fifty two million on be compared to a negative important on the will compete with a laugh yeah we are now keeping your cargo and the capital in others no it's revenue increased by approximately one hundred nineteen percent year over year to nine hundred eleven million on be adjusted ebitda who are that was beaten really on the computer too negative shipping new i'm be from simply as the last year in terms of operating banker we achieve cost saving to operating efficiency improvement our operating expenses moving share based compensation or four hundred and forty one million or twenty percent of our revenue compare with four hundred and one million or a prevail or revenue in the same period last year next let's review some major operating that either please note all of the experiment it's better to year based compensation selling general and administrative expenses were three hundred ninety million rmb or six percent of revenue in the first quarter compared to three hundred fifty two million rmb or seven percent of revenue in the same quarter of two thousand and twenty the decreasing fgm make sense that the other person who do a revenue was primary
spk_2: really executable to improve operating efficient
spk_8: rb ventures that with fifty two million rmb what a point eight percent of the revenue in the first quarter compared to forty nine million rmb or one percent of revenue in the same quarter of two thousand and twenty
spk_0: back in the first quarter what two hundred fifty four they aren't the or three point nine percent of total revenue compare to be one hundred forty six million rmb or six point nine percent of total revenue for the hemp year two thousand and twenty this concludes the first quarter financial overview going for we will continue to attitude of the refocusing plant a line with a lie all costs structure without world the initiative and adapt to the evolving competitive market conditions
spk_1: we are working or nick are alternative financing options you order to enhance the liquidity and the financial flexibility for future world with that we've got now open a particular me thank you thank you we will now begin the question and opposition to ask a question you may three star been one on your touch time fine
spk_8: if you're using a fake a fine when you pick up your hands the it before briefing the came to withdraw your question mainframe dar pin code at the time he will post momentarily to assemble hour after
spk_10: your pet christian come from tommy chong with key for you please go ahead i had the money not bank manager my love for taking my question is am my about to questions and the first one is about ah the competitive landscape
spk_8: many common comment about what we have been are in the both top of regarding the dynamics and the how we are looking into the second half if that any impact the boy
spk_11: bomb competition on e s p
spk_2: cadets job and not my second question you relating to the to a pin ah marketing campaign aren't many common comment about ah the for and income to the park the william i'm bothered to the pain but marketing can be now any difference that we are seeing are compare to appeal it yet ah thank you
spk_6: okay thank you aren't
spk_2: our first question i'm a landscaping paid or laugh when we were talking about express market on be yeah so we do see a continue the how competitive pricing pressures in the in the first half year however that has been much more on schools are much more laugh much left them the of last year
spk_6: so the generally we continue going to see a somewhat of a price and pressured the through the whole year he would that be on the happier
spk_2: as to the e s p r we do not a that being a too much a a a a decrease are you from what is it in the in the second quarter onto the through the whole year get what we see in the market in general he upright and pressure if there like a lack of have a computer pure upon last year that gets on the compatible the idea that the desk inside amen code camping on the job six eighteen col we do see a pic featuring the marketing campaign
spk_12: as you your it for the didn't even picking up on from the normal are possible volume
spk_8: our our high road you know comparatively so the the met last year
spk_10: these are what we'd feed his side he led the last year subs the puddle total numbers of a possible
spk_2: although a got it up a oh a body of a to man are quickly outfit get you
spk_12: don't know about question good pizza and to be learned our enough part the war the own ah you beat me are built to they are high pay the last year due to the paid up the man
spk_8: oh the they are be dating to a competition up and get
spk_10: buy i'm sorry are pump can you rephrase your question i a a good thing to get it very clearly i'm sorry
spk_8: oh i got a story on
spk_2: apollo question i'll be going to be not a p with comment that be our the war the i'm ah anything that pinball maybe like be less than a lot here
spk_13: that will look at that then give it to to the i'd paid a lot easier on the paper pm on include to twenty trying to be audited because they allow more competition
spk_2: let cool are are like the let are you can but the papa volume a banker oh okay og i showed food talking about the a king on our up where we see now of course we don't have a total market number and get their help in a way that you are what are we the and phone or what we feel that you're faking we do have a high volume again you know every day
spk_12: but a comparatively to lafayette seem to be there are at to the reason a could be
spk_14: a market with a one you not demand side of could be that others could be
spk_15: the the bottom been was bragging to fuel the multiple papuans or abigail that or possibility i thought it up a it
spk_16: thanks stuff
spk_15: jani question him come from han kan what bank capital market i go ahead
spk_17: i ago marine johnny and gloria
spk_15: thank you for taking their crashing so ah first question can you tease i just fall off often pricing commentary and while i came from regulatory environment things like of the regulator these courage to price war and and also want to assure been a big v the labour side so it was no from your perspective in it are they any implication to the the landscape or an uprising gotten a nico call structure
spk_2: going for i mean that assuming was the more are tighter regulation here and then in a second question gifts
spk_18: can can can you provide any be more color about the thing and quarter
spk_2: when in a week if explains in turns of the the bowing was a key and or or the probability of for same quarter and thank you
spk_19: oh thank you and
spk_2: the regulatory environment on and are the radio
spk_18: the
spk_2: the government has no it last year some on the pricing on the express market has been could climb the a significantly ah as a result many french i leave then and also our delivery network of course industry has been i'm not very stable income of the look so this isn't and in stoppage you i'm i'm so the stop a year and everything so i think a portable we're very welcome the repertory calling on the are on the effort
spk_6: true or limit on how many my the deepening
spk_2: pricing uprising or gone from at there were will help you know in in in the in the long term to up with a industries are service employees are already the and also protection vr of the carry on with the other boys are given people samantha the benefit social are you in the sense that it's well come on i think most people industry are welcome that we so that i thought or with that i think he ah
spk_15: the second quarter or a referee year
spk_20: the pricing silos should be a a lack of downturn because of the apple by government tried to
spk_15: on putting to a kind of the standard been through the direct be done as well as he the pricing that that the process of like that thought that that you're welcome i think i should be a good news for deal with only the street as a whole alia regarding for your second question about second quarter a lot in grows and fighting side said room on i think we are continue to follow thing on our well needs as well at the bottom line of ability need in that we probably will in our in our pricing strategy will probably be more are focusing more on the he
spk_21: know reduce the the dpp losses
spk_15: our improve your pocket baby fight soda the growth will be there but we will be a laugh yeah we we watch sleep on a hybrid yada a weekly our effort is try to battleford bouncing and make sure that the doctor we have will help the a sustainable growth i'm thinking long term founded in map and one more question yeah yeah so and i'm just regarding the liquidity but saw a figes calculate the
spk_8: and if i just made outta the children dead right and then in anything like we have a running joke about one billion case and then i not there is still on there are about around like a five hundred million health the for sale a and then
spk_2: but other than that a and eighty we have and i mean based on q one at burn rate our we we we have a bow or over five hundred million then of law of god operating cash so i'll just just want you are good idea like do we have any any planning to to on
spk_6: ah to read more capital or do any type of the kept on the power structure okay activity in the near term
spk_22: if i had no idea where they're headed gloria what the heck of a good question so basically are curly you you're you're absolutely right now we have about one billion ah
spk_2: cash of allergy and at them time we also have about the hundred million short a none of which will easily convert to catch so the pkk the ballet the one point three billion and and we wow at an outlet and we are are really on you know for all getting our efforts are evaluating on any other threat he did i financing anything or target and a wife we have more definitive decision family law in all share the on our decision with you yeah sure i like to add something one that so as you have loaded on the our last they're already on a news release we have actually ah we still have a bow that they or two more over to bidding i'm be at that the our capital they should get overcome the leaving out on the
spk_23: that the rain and and enough alone and risk of effort which to have allowed to getting company a total to the i had their we already have converted a about five hundred million to six hundred million of that to cash in was quarter ah so we feel located about to getting our that usable at that ambrosia
spk_15: so by on transferred to other other investors are like to that the cia asset in fact the lottery by interesting is that that that tree a very healthy
spk_24: liquidity
spk_15: the good at that there are at that that the law i mean in addition to the cash really have we do have another to bidding ah a lot of world of financial ah that capitals after them the federal it there were like you said we are looking at the various way to late more capitals odd for supporting our work on around efforts are in there for nine months
spk_5: if we lot of the couple we are
spk_2: and as a outcome comes a we will we will announce that so basically we we look at all or or doing thought about what are you get or tools the okay and in a cage or one last question from me i'm get are just can you say so
spk_6: you kill one a global thing is very strong and wonder what drove the the upside and then i think we will
spk_2: we had been on the you can nuke came across as a russian phone last quarter so i just to the any color about one hundred and driver and then ah from eating a bow need a new like safe war the qt or he oh the whole year thank you okay
spk_25: calm okay so our robo up
spk_18: the first quarter would have predicted a strong the on through the in all countries we operate so many southeast asia
spk_2: the flt for you as i know this guy
spk_15: why large population and i'm and also the idea of penetration or economist is rightfully allowed kill a high over the growth of commerce or pretty high
spk_2: there may have in nineteen and then make even though brings lot of law challenge all operation because it many countries are shut down and many countries that are putting quarantine everything else the however a good man is that your pipe why a high or that time went by on demand i'd i second is that we a tree and kuroda these countries are highly ambien nine malaysia a good really aren't good out the whole nation one network
spk_26: so that allow us to continue to provide a have a strong for services this to meet our customers
spk_2: i'm on me so that the gross margin come from a platform for chess or about our shop be on tomorrow or nothing available crap woman social media of i saw our shoulders and and was you're going we still get out of upgrade our capacity to them and good idea
spk_5: you know the prophet have now is somewhat challenging to travel editors restricted but the idea on the high road are we continue to in back and beautiful capacity of including i'll call you believe it or family week we do see a very strong the of because courtroom
spk_2: activity ah associated with our applied changed as well as our global efforts so it was lol of a court order of transactions that problem be china true southeast asia basically
spk_19: consumer can tell he's asia from
spk_2: happened in china no such a pow pow or to the mall or and in l a prop up that phone and will get together and worship it to the on how he he leisure such as a malaysia singapore tyler the cetera and use our local network put it into a true the to the consumers are on v
spk_27: approaching side with down we we do have like we we we set up and and and operating three
spk_6: oh god will we should leave the collection points are being evil often than one though the basic it will collecting
spk_2: audi by virus that on the pylon on in the southeast asia or whatever they buy from china or pharaohs in china i would put all these much and i together and we ship it to the the you know a earlier or see a degree in on the top of the to find a week or so fed up with a are a true court order
spk_5: on caught i wonder why she ah working with government local government fill up the a clearing house on on be a photo of capital grill and
spk_0: ha and they use the land kind of a patient when have put us through the or china of course will be a nine to spread across asia that was would be a a tremendous growth there to basically problem by both ah domestic local market demand as well as cross border
spk_28: i'll get man for services and that is looking forward to global with you and he to anticipate a a password ah income of volume as well as improve the financial numbers to you in a mouth he ah modern too much and as well as the idea that the use the that a lawsuit on the bottom line on a b b we do anticipating i'm certain the country poet and of year probably will reach into a operating on on operating the bottom line to the at work net
spk_2: on zero or have a baby faith expecting next year we will see a much better on oh supposing girls and been qualifying
spk_5: and give
spk_2: once again if you have a question why pretty darn thing one on your couch time fine unique question come from ronald young when called them fact we've got paid aggie donnie and and gloria and team and you have to question questions when he talked about the turn around void breton sixty nine month is wanna hear what what is that the assumption behind and what is the target for for that either that assume the current pricing campaigning environment or irrespective of that we just have to turn around in profitability or in panama operational turn around so when what what would be bull market share be more of a result of that or that was a part of the fifty nine month target and because as if you mentioned in the second quarter made yamaki she could have been coming lower so i'll eat made me just focusing on profitability and sixty nine month turnaround time and then a my second question would be on how are we talked about our difference you teaching of evolution the financing options with wanna hear what what has been mostly that the challenges with the upon a month according to what are in in looking into those options because we we have seen a company that he and he arlene to be lifted that beat matching platform they'll go papa lifting thirty knock at least a comparable period a afraid or of i bet you cargo the door people are that being a bit the capital market that who who the time and don't wanna hear what what had been maybe some on the challenges and have how do we he and the people to progress or feature option the head and we open to maybe my in partnership with any of a competitive and you thank you to are no good to hear from you again the out for proper question on the kira ah yeah so ah so as you can see our we if you if you see our expressed alarm and army would basically bomb
spk_19: when we start on the eleven i was founded the been about or less than one percent of your market market market shares and only up to or fourth quarter on a non chain wax read about while point four of them on and will we get had one eating i just look at a number to two park or four
spk_2: but twenty one be a is a particular challenge yeah right so i mean we will we were on the twenty ninth in fourth quarter ended on a nineteen will feel like the in a week and to look way or another we're euro for twenty twenty but a sudden southern br br the of and that me on as well as a new and trains into for the movie or the the into the market where your ago a low price in and everything else at that really good a major challenge in twenty twenty and through the twenty twenty one other time you're basically in the past of for five years so we have been running up be a market share in a puppy gory world from much much higher guarantee and the market are going to my own environments okay hey on the upright and willem de lo and right works with so basically you know you're you're gonna have a prebuilt in do you go focus on a world map as a meanwhile your bottom of not damaging had been biking still k on they allowed to read back but when the pricing coming down so much ah yelped twenty five to ten vs the you're your your costs are you going down hill twelve fifteen percent and at her big gap there are dang you a lot of law the a functions and and and and the well doing it to need to add me to challenge them so when we could hierarchical in in for area so i won the a real is about organization so we we need to in always restructure some of the organization on as we have been doing there are things that was good a lot here and you have changed a lot of leadership positions and and between two you should probably says that we want to see if something can be and we are thirty five an improved ah so organization is something either be more a beefed up our second hear more about a franchise the sky make sure that our franchise the are able to survive a healthy the they can also contribute to the world market in the past on the possible for very much concentrated in true
spk_5: how could you a lot more percentage a lot of law on chinese so you know words ah hop you know twenty thirty percent are probably thought the doctors by chinese probably had eighty nine ninety five said they hire ah pato publishers on but now is that we really needed you have a
spk_2: that small or medium or five the french i leave they are capable to apply more customers doing better for his several so in that sense that we need time to wait pick a to help establish to nurture are more middle level or middle to smaller ruled by chinese make sure on that get under pressure level they can't go up to customers and provide a better suited in the past for certainly ah being to the last year it is better the second for the but not not fit to have the last year with a lot of florida or franchisees actually get into trouble i because they been running late bad in the path the five six years
spk_6: on and and in l a but or saddam suddenly mom and change their how you know the basically had shot a and have a difficult to from iwo difficult to two weeks ago provide a better solution to everything that we really need your help and are giving time to do that and thirty basically a we need to looking through our
spk_2: ah strategy our pricing on the product like in the patrick robert poverty in a when he landed or good ah anyhow pricing you can bring the are the idea that the customers green the part though that's good
spk_6: ah even if you don't make money by any to lose that much money but now if you bring order for apostle regardless of the pricing and you will fine i'll get the you knew you are traveling the book because a lot about getting bigger so in the fans are we really need to go to read you know
spk_2: up our pricing strategies as well as a problem make from everything something like to give up and something we had to do more that into a such a large network cross the country a local python time to change lot of things but but i would like to point out that that i travel happy to see the up the proper to have the made on we do a lot of things right so we we we we finally we we are usually more regulated the that delivery fee structure for instead of a more at a hog and the a randomly plunge positive but now we have a more structured a lot about the really feel that they found the in out the product make for anything that there will also push it out of more a product a new pricing structure which will help to improve the the margins and popularity but the through the whole network or to change you the option to nurture the are the more i
spk_29: the on a patch has to be more competitive a competitive are to make sure the our problem make thing or more you know
spk_2: bob gross margin in and bottom line got on thing and if all of our head for the time so that is something that we looking at it with not just looking at a cost of they've are caught actually coming down a lot if you look at our was quoted number how pathetic when about kitchen which is significant because basically he he idea i look looking the second call again the number of that that the costs coming the a automated computer that you are so yeah cause we don't focus on b e t v are operating metrics or operating efficiently but one commonly machete the whole network structure the product live on
spk_30: structure and ten and and to a much more on
spk_2: five much more on on mixing the via via via the the optimized got the solution so desperate that the paddle were talking about your second question on a will will read talking about running inside your your apps to correct
spk_6: if you look at our business
spk_2: on yeah aside from the express which we have been everybody focusing on but if you look out frame on faith doing extremely well
spk_0: a would larger thing the industry or market position by as well as his pocket baby grows original doing extremely well looking at our up the supply chain we have a in a over can you experience with actual that with a power outage that got the approach on another on just walk in kuwait
spk_2: be to be to see affiliated with over seven hundred on what your five are good you know global and china a fortune five hundred customers don't build up a lot of expertise and we're really a as well but he that in the past we have a school class we we're we're doing lot of things that to try to support a lot now on on the computer
spk_0: team but would chew you know the focus so willing cutting down or did you give me see the our

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