EHang Holdings Limited Price & Performance (EH)

Mr. Zhao Wang, Chief Operating Officer and Mr. Connor Yang, Chief Financial Officer. Before we continue, please note that today's discussion will contain forward looking statements made pursuant to the Safe Harbor 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 expectations expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with SEC. The company does not assume any obligation to update any forward looking statements except as required under applicable law. Also, please note that all numbers presented are in RMB. And are for the fourth quarter of twenty twenty four. Unless stated otherwise. With that, me now turn it over to our CEO, Mr. Huazhu, Please go ahead, Mr. Hu.

Hello, everyone, and thank you for joining our earnings call. Q4 and full year 2024 marked another record breaking period for EHang, we continue to grow significantly. Beating our guidance and setting new record high quarterly and annual deliveries and revenues. In Q4, we delivered 78 units of two sixteen series product, generating revenues of RMB164 million, representing an increase of 239.1% year over year. For the full year, we delivered two sixteen units with the total revenue reaching RMB456 million marking a 288.5% year over year increase. More importantly, 2024 was a breakthrough year as we achieved positive adjusted net income and positive operating cash flow for the first year. A significant milestone in EHang decade long journey. With this, EHAN also became the first eVito company in the globe urban air mobility industry to achieve non GAAP profitability further solidifying our leadership. At China's twenty twenty five two sessions, the low altitude economy took center stage as strategic emerging industry and a key driver of new quality productive For the second consecutive year, it was included in the government work report, which explicitly calls for large scale demonstration projects to advance new technologies, new products and new applications to promote to the sector's safe and healthy development.

Additionally, China's NDRC, National Mission, established a dedicated low altitude economy development department in December 2024. Meanwhile, the local governments in over 50 cities across China have introduced their localized development plans for the sector. These government initiatives further highlight China's long term national strategy and strong planning for low altitude development, 2025 will be the year of implementation. Since obtaining the three airworthiness certificates, we have been accelerating the commercial deliveries and operational deployment of the H216S. Our customers have already established over 20 in vitro operational demonstration sites and eports across 16 cities in China, including Hefei, Guangdong, This year, our top priority is to launch operational demonstration projects in key cities to enable the public to experience the Evido flights firsthand. To this end, we have been actively driving the operator certification process for a pilotless pass [indiscernible] Currently, the Civil Aviation Administration of China has completed document and on-site inspections for the first two applicants accepted. They are EHang General Aviation, our wholly owned subsidiary, specializing in UAM operation services and Hei Aviation, our joint venture in Hefei, Both are now awaiting the final approval. We look forward to the early issues of the two operator certificate, marking the beginning of the commercial evalu operation era.

Looking ahead, we expect more operators to apply for the operator certificates paving the way for broader commercial flight service of the 16 S in the future. 2025 marks a pivotal year for AI technology and innovation in China globally. This year's government work report reaffirms the nation's commitment to the AI plus initiative emphasizing the acceleration of AI applications across across various industries, including the low altitude economy. As a pioneer in pilotless, innovative technology, EHang continues deepening our AI plus strategy. Leveraging our core technologies, including safety redundancy, autonomous flight and fleet management along with intelligent system platform, we're integrating AI across the whole Evido lifecycle to drive intelligent upgrades and innovative practices in commercial operations. This includes further optimizing our key technologies and capabilities such as intelligent flight control algorithms autonomy detection, flight route planning, command and control, human machine interactions, narrow simulation and the UAV cloud system. Beyond enhancing our aircraft, AI is set to expedite the construction and enhancement of the digital infrastructure for Air Mobile EHang will collaborate with multiple Chinese universities, colleges and relevant government departments and the commercial conglomerates to advance the integration and innovative integration of digital technologies such as five gs, six gs, cell communications, sensor technologies and high precision navigation with the low altitude aviation industry.

Together, we aim to build a smart low altitude ecosystem interconnecting air traffic infrastructure, flight corridors, communication and navigation systems, aerospace management, and operational services. This will establish a secure efficient and intelligent digital foundation to support commercial operations for Eihon and our customers. On the product front, we continue to advance our multi rotor EVITO series through strategic collaborations with the leading upstream companies. Including Inc. Greater Bay Technology and Empower, Together, we are developing customized the next generation high energy solid state lithium batteries, fast charging batteries and electric motors. We have achieved great progress in simple design prototyping and testing We conducted the industry's first EVO test of light powered by solid state lithium batteries delivering an impressive endurance of over forty eight minutes. We are thrilled about this major technological breakthrough that reinforces our confidence in next phase overall performance enhancements. For our upgraded lift and cruise model VTE five. Its prototype is in its final assembly and testing. We plan to completed the full functionality test to fly as soon as possible and initiate the Airworthiness certification process. It will be unveiled soon. For the flying car that targets the mass consumer market, we formed a cross industry strategic partnership with China Automobile to actively design and discuss new product solutions to explore innovative approach to future personal transportation.

Over the past decade, Yihan has pioneered numerous industry first and we firmly believe the next ten years will witness the rise of the low altitude economy disruptive development of AI technologies and transformative development in unmanned aviation. As the saying goes, a journey of 1,000 miles begins with the first step, As the EHang enters its next decade in 2025, we remain steadfast in our commitment to advancing technological innovation and standards, operational demonstration and ecosystem development of pilotless VITOS. We aim to lead the transformation of urban air mobility while promoting the safe, healthy and sustainable development of the industry. Next, I'll turn the call over to our COO, Mr. [indiscernible] Thank you. Hello, everyone. This is Weng Zhao. Closed 2024 with record high deliveries and revenues. Exceeding our performance guidance. This success is driven by strong market demand and growing customer orders. [indiscernible] has received a 30 unit order from Shandong province a 30 unit order from Zhejiang Province, along with an initial five unit order and an indicative order from another 45 units from Sunriver with the result of 78 units deliveries in Q4 and $164,000,000 in revenues. The total annual deliveries reached two sixteen units with a total revenues of RMB456 million.

To meet the continuously growing order demands, are focusing on enhancing production efficiency, scaling production capability and planning capacity expansion. Guided by our manufacture to order principle, where I establishing our original and networked production China. In South China, our Phase one Yunfu production base currently has an annual capacity of 300 unit This year, we plan to expand Phase two with 24,000 square meters of new production lines while upgrading our automation and efficiency. 2025, Yuanfu production base is flaked to reach double size and a total annual capacity of 1,000 units. It will also produce large number of aviation materials and components for our customers. In East China, with Zhefei as our regional headquarters, we are further deepening strategic cooperation with Hefei government, partnering with advanced new energy vehicle manufacturer JAC Group and Hefei Guixian Holdings to build an advanced, generalized and automated in vitro manufacturing base. Additionally, we are collaborating with the Weihai High-tech Zone in China province to establish a pilotless passenger in vivo R and D and manufacturing base there. Creating an all around collaboration system integrated production, sales and operations. In North China, we have entered a partnership with the Beijing Fungshan Distru Equipment.

The headquarters features a 72,000 square meter factory, a training center of over hundred thousand square meters and a training exercise space of hundreds of acres. Leveraging EHang's current flight platform and autonomous flying technologies, we plan to vigorously develop R and D production and operations in the fire emergency rescue [indiscernible] This year's two sessions promoted large scale app application demonstration actions and the safe and healthy development of the low altitude economy. Which are deeply in line with IHOP's development strategy. We fully endorse this principle Safety is the top priority of the sector from the in vivo design to the flight and operational system. EHang has implemented comprehensive safeguards for commercial operations. EHang has integrated the full redundancy philosophy from the IT sector into the design of our pilotless passenger INVITOs and has passed vigorous airworthiness testing and certification. The three major electrical systems within aircraft all have sufficient redundancy with backups, eliminating single point failures. As the low altitude economy approaches a critical phase for mass adoption, the industry requires a suite of scientific, comprehensive, rigorous and safety oriented operational framework for Evidos. During the operator certification review process, EHang worked closely with the government agencies, regulators, academic institutions and industry associations to advance establishment and improvement of relevant standards and regulations.

To strengthen safety operations, we have internally optimized our structure to establish a comprehensive safety operational system and team. From product sales, customer service, personal training, aviation materials, sales, maintenance and repair and software system to landing pass design, road planning and integrated operational services, we are building a full cycle value chain encompassing hardware services and operations to provide customers with one stop solutions. Looking ahead, our revenue streams will become more diversified. This year, EHang remains committed to the safety first principle while focusing on low altitude tourism as key entry points in urban air mobility as a large scale goal to expand our UAM operational network in pioneer cities. To demonstrate the low altitude economy and then systematically scaling operations from point to point connections to a fully integrated network. For example, our second UAM hub at Logang Park in Hefei the Evidou operation center at Longhe Air Shanghai, Shanghai, and the first automated verde port at the UAM center in Luohu, Shenzhen. These flagship projects serve as typical models Over the next three years, we will work with partners such as China Construction Group, China Communications Construction Company and other infrastructure construction units local governments and major commercial partners to jointly develop more than 100 urban air mobility terminals at more than 100 low altitude culture tourism terminals in National 5A level syncs.

Areas across China. We aim to build a city level low altitude economy flight service system and carry out integrated business corporation that combines culture and tourism, transportation, emergency response and logistics. In 2025, based on EHang Carden's mature flight platform and autonomous flying technologies, we will not only vigorously develop passenger business, but also develop non passenger business The fire emergency rescue sector has already been established in the capital Beijing. Besides, EHang is committed to developing low energy long endurance logistics UAV products. Which will greatly promote the development of low cost, high efficiency aerial logistics transportation. We aim to realize applications in interprovincial, interprovincial and cross border logistics scenarios. Currently, we have started exploration and layout in Beijing Guangdong, Guangxi and Hainan. Overseas, we are expanding our presence in Asia, Europe and South America to continuously advance our market development, flight scenarios and regulatory approvals. In Q4 last year, we conducted three consecutive days of EH216A passenger carrying flights in Central Bangkok, Thailand. And plan to launch commercial trial operations this year within the SandBox areas designated by the Thai Civil Aviation Authority In Japan, we completed a new four city flight tour, expanding our flight footprint across 16 cities and showcasing multiple use cases including aerial sightseeing, inter island transportation, aerial logistics and emergency services.

In February, 16 has completed Europe's first autonomous in vivo flight in an urban setting a precedent for future urban air mobility deployment in Europe Most recently, we conducted our first flight in Mexico further expanding our global footprint to the nineteenth countries. Today, our cumulative flight record has surpassed 64,000 flights. As we move into 2025, we will continue to execute our global market strategy of deepening domestic business while expanding globally we'll remain focused on both sales and operations, further diversifying our revenue streams. Amidst China's trillion level, low altitude economy and the blue ocean market, along with the great potentials for areas I see across nearly 15,000 Class A and above tourist attractions and nearly 700 cities for urban air mobility, we remain optimistic about the strong demand for our in vivo product and operational services Confident in our long term growth prospects we expect total revenue for 2025 to reach 900,000,000 representing an approximately 97% increase year over year. Now I'll turn the call over to our CFO, Conor, for the financial performance. Thank you. Hello, everyone. This is Conor. Before I go into detail with please note that all numbers presented are in RMB unless otherwise stated.

Detailed analysis are contained in our earnings press release, which is available on our IR site. I will now highlight some of the key points here. I am pleased report that we closed 2024 on a strong note, surpassing expectations for both Q4 and the full year. In Q4, we achieved record revenues of 164,300,000.0 representing an impressive 190% year over year growth. For 2024, our total revenues reached an all time high of $4.56 2 million, up a substantial RMB252.2 million, up a substantial 89% year over year. This outstanding performance was primarily driven by strong EVIDO market demand along with our well coordinated and impactful strategic initiatives in key areas including OC certification, production scaling and commercial readiness. On deliveries, we set a new quarterly record with 78 units of the two sixteen year increase and a 24% sequential growth. For 2024, total deliveries of the 16 series reached two sixteen units, up 315% from 52 units in 2023. Our gross margin for Q4 was 60.7%, slightly down from 64.7% in the same period of 2023 and on par with Q3. For full year 2024, the annual gross margin was 61.4% a slight decrease from 64.1% in 2023.

The decreases in gross margin were primarily due to changes in the revenue mix and higher unit costs for the EH216S 60%, highlighting our competitive edge and pricing power in the EVITO sector. Turning to the operating expenses. In Q4, adjusted operating expenses, which is defined as operating expenses excluding share based compensation, were $78,200,000 up 22% year over year from $64,200,000 but down 10% from Q3. The sequential decline reflects cost control and efficiency optimization, while the year over year increase was mainly due to the expansion of sales channels, higher employee compensation and investments in new Avedo models. In addition, we continue to actively invest in the development and iteration of new Avedo models and technologies. Since we obtained the three airworthiness certificates. For 2024, adjusted operating expenses were 290,100,000.0 up 28.2% from $226,300,000 in 2023. Strong top line growth and cost efficiency contributed to a solid improvement in non GAAP profitability. Adjusted operating income for Q4 was $27,900,000 a significant improvement from the adjusted operating loss of $24,900,000 in Q4 twenty twenty three and up 28.2% from Q3. In Q4, we realized the third consecutive quarter of adjusted net income for RMB36.4 million, a sharp improvement from the adjusted net loss of $22,100,000 in Q4 twenty twenty three and up 132.3% from Q3.

For 2024, we achieved the first ever annual adjusted net income of $43,100,000 a significant improvement from the adjusted net loss of $139,000,000 in 2023, marking our entry into a new phase of sustainable and accelerating profitable Alongside a strong revenue growth and improving profitability, we also maintain a solid liquidity position As of the end of Q4, our total cash and cash equivalents were was $10,000,001,055,000,000,000 dollars This strong cash balance provides us with strategic flexibility to support growth initiatives invest in innovation and enhance marketing competitiveness. Notably, we recorded our fifth consecutive quarter of positive operating cash flow and the first ever annual positive operating cash flow. Amounting to approximately $160,000,000 in 2024, demonstrating our ability to generate a sustainable cash flow while scaling operations. Looking ahead, to 2025, we are in the final stretch of obtaining operator certificates. We believe that the achievement of this key milestone along with our active progress in eVITO commercialization readiness, operational deployments production scale up, technological innovation and a global market expansion, we will further solidify our industry leadership. EHang a strong foundation for accelerated growth and drive us into a new growth cycle. Based on our current progress and market demand, we're expecting total revenue in 2025 of approximately RMB900 million.

Representing a year over year increase of 97%. Thank you.

Thank you. Now let's open the call for questions. Please go ahead.

So I thank you for taking the question. I just have a question, which regarded on the production capacity I know we are expanding our production capacity for the interim Phase [indiscernible] So wondering what kind of added production capacity we are looking at for the Hefei production facility by the end of twenty twenty five and 2026. And also if we're talking about a total production of 1,000 units, so how much of volume are we seeing So how much will be the utilization rate are we looking at between 2025 and 2026? Thank you. I'll take this question. For initial Phase two for the capacity expansion, this will complete this year. Reaching a total annual capacity of 1,000 units. And the Yunzhou Phase one and Phase two production lines will have specialized focuses. They will be focusing on aviation materials slash components manufacturing and Aircraft Assembly, respectively. So additionally, with our joint venture with EMPower, we are also upgrading the production lines improving the automation and efficiency in manufacturing and supply chain management. With regard to Hefei, plan to establish a JV with JAC Motors and Hefei Guo Xian Holdings to build a modern low altitude aircraft manufacturing facility.

And according to the planning of the government of the local the HoFe local government, the expansion of construction work is expected to be completed in one point five EHang and two years. And additionally, we also have plans for production in Weihai, Shenzhen Province and Funchan District of Beijing. As previously mentioned. And our expansion for the capacity follows manufacturing to order principle. So we will adopt a slatted growth strategy across different parts of China, say South, East, and North China. And they will have a specialized management for different product lines, including passenger transport, logistics, and emergency response, and firefighting. Thank you.

Your next question comes from Sid Cindy Huang from Morgan Stanley. Please go ahead.

Thank you for taking my question. First, congratulations on the strong Q4 results. Could management provide additional color on the expected timeline for our OC application What are some of the milestones we are expecting with regard to the application? And my second question is, that when are we going to achieve a GAAP profitability with our collaboration initiatives and also the construction of many of the infrastructure and facilities. Can you please offer a ballpark CapEx and OpEx for the coming quarters of this year? Thank you. Let me take your first question and we are glad to announce that we have a so the CAAC has completed and the acceptance and on-site inspection of these two AC applicants. That's for our He Yi subsidiary company. And we are now just waiting for so we have pretty much completed all the required work and just waiting for the final regulatory approval. So we also expect these OC will be rewarded to us as soon as possible. But so the inspection and everything I mentioned is itself is already a milestone. And these will provide the provided the basis for us to roll into commercial op operations as soon as possible.

I want to emphasize that these will be the first unmanned Evidoo OC issued under the new interim regulations for the UAV flight management So the certification process itself is establishing and also refining the standards So is a significant responsibility that will set crucial precedence for the safe commercial operation of Thank you. This is Conor. I will take your second question. As you As we have mentioned, we have achieved a non GAAP profitability in 2024. And with your question of how and when are we going to achieve a full year GAAP profitability. So according to our plan and also our F percent, which is $900,000,000 revenue in 2025, we expect it to achieve GAAP profitability quarterly in the second half of twenty twenty four. However, for full year GAAP profitability that it will be sometime in 2026, So with regard to CapEx, our full year CapEx guidance for 2025 will be US40 million dollars and the CapEx will be used in scaling up our production capacity in Kunfu Phase two, EHang Hawaii as well as our planned production site in Fungshan District, Beijing. And we will also use some of the money for developing models that will be used in emergency response and the logistics.

Plus there's going to be investment in construction of our new headquarters in Beijing in Guangzhou. And we expect to be OpEx to grow at 40% year over year in 2025. Thank you.

Thank you. Your next question comes from Wei Shen from UBS. Please go ahead.

Two questions. Good evening. Management. Two questions. One is on the gross margin outlook. And the other one is on financing plans in 2025. What's the kind of Our targeted gross margin is around 60% give or take. So to achieve that, we are going to adopt two initiatives. For one, we are going to invest more efforts roll out more product lines to make our further offering more diversified with the diversification that's going to help drive up the gross margin. And the second initiative that we're planning to to I would just mention about is going to be help grow the gross margin. However, we're planning to do distribution model, which is going to sacrifice the gross margin a little bit. But give or take, we're aiming 60% gross margin. So last year we raised nearly $100,000,000 And also our current cash reserves exceeded RMB1.1 billion. And as I've mentioned that our positive cash flow is around RMB160 million for 2024. So as you can see that our business is self we have a business of self sustaining [indiscernible] capability and healthy development. So with regard to this year, we will accelerate market and business expansion. Seeking additional financing to strengthen our capital position.

We This will support new EBITDA technology and product development, market expansion, new headquarters construction, production facility development and team growth. So ensuring sufficient funding for our next growth phase. Thank you.

Thank you. Your next question comes from Laura Lee from Deutsche Bank. Please go ahead. [indiscernible] So my first question is about the Airtech parts. So we noticed there are increasing announcements of UEM either you're building like an experience center or development of digital infrastructures. So So just wondering, is there any rough timeline for the Airtech's operation? And any notable milestones in between?

Thank you. This is Song Jo. I will take this question air taxi services remain our long term vision and mission, Aviation prioritizes safety above all, repairing careful step by step progress. So over the next couple of years, we will first establish operations in domestic tourism areas. To accumulate enough data before we venture into air taxi services. And also air taxi implementation depends on ground infrastructure particularly ferdy ports and many low altitude digital instructions. Including communication, navigation, surveillance, air traffic management, Right now, cities across China have put forward clear and specific plans and timelines for the infrastructure construction. And with many planning hundreds to thousands of 30 ports and routes over the next three years. As an industry pioneer, EHAN is actively contributing to policy development, and infrastructure planning Our partnerships with CCCC and CSES we CSCEC and many local governments are actually helping to build the ecosystem and framework for Air Taxi operations.

Thank you. Your next question comes Rong Yan Zhu from Citix. Please go ahead. [indiscernible] Thank you for the presentation. And thank you for taking my question. My questions are on your overseas market. The first one is the progress of our OC certification. As well as the orders what kind of situation are we at right now? And my second question is on our plans on diversifying our revenue streams. So with that, I mean particularly what kind of revenue revenue growth or mix are we looking at outside of manufacturing of these flying vehicles.

So any guidance or plan on that? I'll take the question. Since Q4, we have completed Slide demonstrations in Japan, Thailand, Spain, Mexico and many others. Expanding our flight footprint to 19 countries, Last year, we delivered orders to overseas markets. That includes UAE, Japan and Dominica. As pioneers in pilotless passenger carrying aircraft, we are actively engaging with civil aviation authorities worldwide through local flight demonstrations, and discussions to promote the Airworthiness Certification for this new aircraft. The CAAC is very supportive of our efforts in applying for international certification. And we are working together to promote certification of the unmanned passenger carrying aircraft overseas. We are actively exploring some innovative pilot first approaches to expedite the international operations of our [indiscernible] Thank you. On your second question, EHang maintains a due strategy of both operations and sales. So we position ourselves beyond just being an eVido manufacturer. We build a complete lifecycle value system for our customers featuring hardware, service, and operations. So this includes product sales, customer service, personnel training, aviation materials, maintenance software systems and route planning and operations. As the Evidil commercial operations scale up, EHang will develop more diversified revenues streams. And additionally, I want to tell you that beyond the passenger transportation, we are intensifying our efforts on logistics and firefighting business this year to broaden our revenue sources.

Thank you.

Thank you. Your next question comes from Yi Ming Wang from China. Please go ahead.

Thank you for taking my question. I got two questions. One is on the update on new orders. And the second question is on the collaboration with the JAC. Production base. So what kind of roles will JAC and IHAN play in this JV? And what kind of profit split and also cost split we are looking at between the between you two. Thank you. Our domestic demand is very strong. With the current intentional orders exceeding 1,000 units plus many more orders are under negotiation. Just so you know that we have dozens of clients who placed order of dozens of units at each time. And additionally, you should know that China has nearly 15,000 Grade A and above tourism attractions for aerial sightseeing. And there are nearly 700 cities that offer planning air mobility services. So we remain optimistic about the strong demand for our eVito products and operational services. Thank you. And with regard to your second question, the JV partnership with the JAC is actually carried out under the support with the support of the Jose municipal government. And we are building a JEV with JAC Hafei Quixin Holdings Corporation to build YVITO production base. So JAC has a [indiscernible] expertise in manufacturing and supply chain management in automobile sector.

Whereas for us, we are leading in the development production and OC in the Vito sector. So this corporation will bring the best of us and leverage both parties' respective advantages. And with regard to the specific details of this JV, it's still under discussion. And I'm sorry, I couldn't disclose more at the moment. Thank you.

Thank you. Your next question comes from Yu Chen from Gwangfa Securities. Please go ahead.

First of all, thank you for taking my question. Breakthroughs and the strong results achieved in 2024. I got a question on the financials that I would like to double check with the management. So in Q4, we have seen that management and R and D related expenses grow significantly quarter over quarter in Q4. So how do how does management view the trends for these expenses for 2025? The companies are still expanding. And that's while we are seeing substantial revenue and delivery growth over the past year, we're also expanding our team leading to increased expenses. However, expenses as a percentage of revenue have decreased significantly. And looking into this year, we expected the sales and R and D expenses to grow, definitely for sure. With moderate growth in management expenses. So as revenue growth will outpace expense growth, we expect to the ratio of SG and A to revenue to continue declining, as you know, that we are projecting a 97% growth in our revenues, whereas our operation growth related costs will grow at 40% year over year. Thank you.

Thank you. Your next question comes from Ling Lu from Goshang Securities. Please go ahead.

Thank you. Two questions. One is on the [indiscernible] So what's the progress on the next generation lithium batteries? And what are the expected upgrade timeline and the flight endurance improvements how are that looking? Second question is on the product. Of VT35. What's the update on that When are we planning to submit to the TC application? EHang you. [indiscernible] With regard to battery, right now we are pursuing two directions for the battery involvement. First, on the fast charging batteries. Fast charging. We are partnering with Grinner Bay technology currently testing samples that could significantly reduce the charging time? So that's for one. And secondly, on the solid state batteries, our strategic investment in Inc. Energy is progressing well We are having very excellent cooperation and R and D breakthroughs. So we have doubled the EH216 of Flight Endurance and we'll continue fine tuning the performance and conducting more scenario validation. So we are aiming for mass production and installation by the end of this year. Thank you. With regard to the long haul model VT35, right now the development of prototype is currently in its final assembly and the debugging stage. We plan to complete the full function flight testing soon and initiate the airworthiness certification Project.

It will be unveiled to the public shortly.

Thank you. Seeing no more questions in the queue, let me turn the call back to Ms. Anne for closing remarks.

Thank you, operator, and thank you for all for participating on today's call. If you have further questions, please contact our IR team by e mail or participating in the following investor events through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

Thank you all again. [indiscernible]