Good morning, ladies and gentlemen. I am [Suthatjit Charinjit], and I will be the moderator for today's session. Please welcome to the SCG analyst conference for the second quarter and the first half of 2024. We highly appreciate to welcome the 30 guests who come on-site today and the guests who are joining online as well. Our management is here to provide the second quarter and the first half of 2024 results, as well as the business updates. After that, we will open the floor for the Q&A section. Today's presenters comprise of SCG Management, led by Khun Thammasak Sethaudom, the CEO of SCG, who will walk you through for the consolidated results and provide the highlights of SCG Cleanergy; and SCGC Management, led by Khun Sakchai Patiparnpreechavud, the CEO of SCG Chemicals.
Next are the management from the business related to the cement and construction business, beginning with Khun Surachai Nimlaor, President of Cement and Green Solutions Business; and Khun Wiroat Rattanachaisit, President of SCG Smart Living and SCG Distribution and Retail Business, and also highlighted for the SCG Decor; f ollowed by Khun Chantanida Sarigaphuti, CFO of SCG, who will be presenting of the SCG Packaging and financial part; and t hen, for the sustainability part will be highlighted by Khun Suracha Udomsak, Chief Innovation Officer and Executive Vice President of New Business at SCG Chemicals. Thank you, and n ow, let's start for today's presentation, beginning with Khun Thammasak.
Good morning. Welcome back to our quarterly discussion. I would like to start with some reflection for the first half of this year. First of all, can you go for the next page? Oops, sorry. Sorry, I have to do it. Okay. If we look at the first half of this year, you could see that the world is in a very highly volatile situation. On the global basis, we, o ops, sorry, o kay, y eah, o n the global basis, we look at the geopolitics. That still play a big part on the trade flow. This issue is going to persist and probably intensify. If you look at how it impacts us, it impacts us on the chemical prolonged down cycle. So, that's something we are living with.
In Thailand, you could see the economic recovery is still pretty weak and lower growth compared to, for example, Vietnam and Indonesia. So, that's something we are living with. If you look at the construction sector later on, [ Non-English content ] will discuss in detail, but you could see that it's a slowdown, mainly because of the delay of the government budget, and a lso, if you look at the real estate in the low- and middle-income part, still pretty slow due to the credit tightening and weak in terms of the demand. We also facing the issue of the Map Ta Phut Tank Terminal accident. That's very unfortunate. It does. Of course, now it's finished, and we are moving on, but a nyway, it has some impact, which [Non-English content] will discuss further. So, Cambodia and Laos is still pretty slow. That's what I can say.
But those are the issues that we are facing. If we look at the bright side, what we have done quite well, Indonesia and Vietnam, we see a good recovery. Our business is, apart from Thailand, 29% is in Vietnam and 12% is in Indonesia. So, these two major markets are going quite well. Energy cost, I think we have done a good job to improve our energy cost, mainly on the alternative fuels increase. In Thailand, [ Non-English content ] will explain that we increased to 50%. This really help us in term of the cost control. And the green product, g reen product is something that really helping us. If you look at the low-carbon cement, the first million tons accumulated sale to the U.S. already achieved.
This is something that I think we have done a good job on this, and we start to optimize and trim down on operating business that make sure that our business becomes fit. Chemical, of course, is still in the trough. You have to separate and look at our core chemical in Thailand, which is still profitable. But we have a big depreciation and interest from the Long Son Petrochemicals that pull us down. So, that's something we can digest and paint the right picture. Packaging earning increase, as I mentioned, consumption to get going and we will see improvement in the regional, especially Vietnam and Indonesia. Second quarter, especially on the second quarter, we have a strong dividend from our investment in several associate company. So, that's for start.
For revenue, if you look at the quarter revenue, you see the improve 3% Q-on-Q, improve 3% year-on-year, m ainly because we resumed the ROC in the second quarter, and that helped to boost our top line. If you look at the first half, you see more or less flat. Also, we have some benefit from the baht depreciation. We are net long for U.S. dollar. EBITDA Q-on-Q improve 29%. I would like to point out one thing, which is a key trend on if you look at the Q4, Q1, and Q2. Q4, Q1 and Q2, you see the upward trend. So, that's something see very clear. Q4 is very tough last year, and now, getting improved over time. Okay. Given that we absorb more and more depreciation and interest from the Long Son Petrochemicals, and also, we absorb the Map Ta Phut Tank Terminal a one-time issue of onto loss.
On the profit, you see the same trend. If you look at Q4, Q1, and Q2, you see the upticks of the situation. Of course, if you compare on the year-on-year basis, you see a weaker because of the chemical still in the prolonged trough. I would like to point out on the Q2 performance, the THB 3.7 billion. This already include Long Son Petrochemicals, this already include the Map Ta Phut Tank Terminal about THB 400 million. So, if you adjust, you could see the health of the cooperation. So, that's something I would like to point out. For the first half, you could see the profit is the THB 6.1 billion and of course weaker than the last year, mainly because of the chemical Long Son Petrochemicals loading for the first half for almost THB 5 billion.
For Long Son Petrochemicals , I am viewing it as two things: o ne is the depreciation, another one is the interest. The depreciation it is not cash. Okay. That is something we would like to point out. But if you look at the Cement and Green Solutions, Smart Living, Decor, Packaging, and the investment on the first half basis is improved. That is what we can see. Our business, Thailand is still 56% and ASEAN ex- Thailand is 9% increase. If you look at the detail of the graph on the right-hand side, you see that Vietnam and Indonesia see the upticks in the order sale. So, that reflects the business situation in the region.
The export overseas expands further, especially to, for example, to the U.S., as I mentioned, that we start to see more upticks on the green product demand, which are helping us to shipping our business portfolio toward a more strong and highly differentiate business. That is the prelude for the Q2, then I will come back again on the outlook. [Non-English content]. Pass to [ Non-English content ].
Good morning. In general, petrochemicals in the second quarters, I would say, the situation are still tough because of the oversupply. You look at the demand in the first half of this year, is slower than our expectation in the beginning. You may know because of the global economies and also geopolitical tension, that make the demand growth less than our plan. You look at this chart, you see all the polymer price quite unstable, but o nly C4 chain. Considering as the byproduct of the cracker, BD price shoot up. That is also because of the naphtha cracker in the global, they try to run less and also increase the portion of the gas that make the byproduct of the cracker less. So, the byproduct economics improve. Move to the olefin chain. As I mentioned, the demand side growth quite slow.
Even though the supply side in China, you see the several new capacity supposed to come on stream in the second quarter, they postpone to the third quarter. But the gap, the margin is still under pressure. So, the gap improve a little bit. Let us say polyethylene chain increased from the first quarter about $10. Also, PP chain improved a little bit. Look at the sale volume. We resume the production of ROC in the second quarter. That makes our sale volume with the second quarters increase about 70,000 ton. Anyway, if you compare with the last year, first half of this year, we run less than the last year. Look at the vinyl chain. In fact, vinyl chain some support factors. Even though the demand side is still not so good, b ut the EDC price decrease, this is also can contribute to the spread of PVC chain.
Also, the freight charge. You may know, the second quarter, the freight charge from China, from Southeast Asia to remote areas, that is shoot up. That makes the products from China export to the other region quite difficult. That is why the price of the PVC can improve even though the demand not so good. All in all, the spread in the second quarter improve significantly, about $60. Also, the second quarter vinyl chain, we can sell more because of we run VCM plant. In the first quarter, we shut down the first VCM plant. So, PVC overall, we increase the sale about 30,000 tons. Anyway, compare with the last year, still lower than the last year because of the first quarter we cut run. Look at the financial of SCG Chemicals. As we run more, our revenue higher than the first quarter.
We end up at about THB 52,000 million, e ven higher than the last year, a little bit, 2%. Look at EBITDA. EBITDA, the second quarter, we can achieve THB 3,098 million. Every year, the second quarter is seasonal dividend from our associated companies, t hat is why the second quarter higher than the first quarter. But you look at year- by- year. Year- on- year, the first half of this year compared with the last year, still much lower. Actually, the main cause is the spread. The first half of last year, the spread of the products is better than this year. In term of the profits, t he profits is also the same. If you compare with the first quarter, the profit actually increased, e ven though it is the minus of the subsidiary that mainly caused by Long Son Petrochemicals.
Anyway, if you look at the loss in the second quarter, it is less than the first quarter. Compare with this year and the last year, also the same. Half year, we lost is about THB 3,100 million. That is because of the Long Son Petrochemicals this year. The depreciation and also some fixed cost is now we have to book. Look at the outlook going forward to the second half of this year, especially this quarter. The demand side improved a little bit. Normally, the third quarter every year, the producer in China, in Thailand, they increase the capacity to export to those regions. Anyway, as I mentioned, the postponed new capacity from China, they will run in this third quarter. So, we expect higher competition in the third quarter. So, you look at the spread at this moment, probably under pressure.
Anyway, I think that spread, this level should not go lower, because if the spread lower than this one, all the producer, they will cut the production, because that is not the survival gap. Vinyl chain demand improved. I am sorry. The vinyl chain, the third quarter, considering as the seasonal low demand. Anyway, the supply side, as I mentioned, the high freight charge from China that make the export from China, I hope not so much. So, the spread of vinyl chain can maintain. Look at the cost. It is a very uncertain price of the crude oil. It is dependent on the situation of the geopolitical. If there is some news or some conflict more, the price is firmer. Anyway, we do not see the cost side will be solved, probably stable at this high level. EDC price as well, the third quarter will be firmer and higher than the second quarter.
I would like to update the green initiatives. We just signed MOU with Dow Chemical. We try to bring back plastic waste and transform to recycle. We aim to reach our goal 200,000 tons in the year 2030. The activities will be announced later. Also, advanced recycling, this is very challenging. We used to update and share our demonstrations. So far, so good. Anyway, we still have to improve the technicals. We just signed also the collaboration with Toyo Engineering to improve our process. We hope this time, we could achieve, and if we achieve to that level, we will scale this advanced recycling. Long Son Petrochemicals, n ow, our team work hard, and from the last quarter that we supposed to come on stream, but we faced some mechanical issue that maybe decided to bring down and recheck in order to ensure the smooth startup and safe startup.
Now, we are ready. We plan to start up the beginning of next month, August, and probably take one or two months to fine-tuning and also reach to full capacity. We will announce the commercial runnings hopefully in October. Of course, later you may, I can guess you may ask several questions on the competitiveness of the Long Son Petrochemicals. Anyways, the team now, we try our best to improve several issues from the marketing side, the cost side, and also optimize with our existing two cracker in Thailand. That's all, [Non-English content] .
Good morning, [Non-English content]. Let's move to Cement and Green Solutions business. In the second quarter, our revenue from sale are slightly down compared with the first quarter, mainly from seasonality demand. This is a normal characteristic for our cement industry. If you look at the first half performance, you can see that the revenue are down 7% year-on-year, mainly from a soft demand from the infrastructure project and the government budget delayed that [Non-English content] has mentioned. But if you look at the EBITDA and profit, they improve quite a lot. EBITDA and profit improve 6% and 24% year-on-year respectively, as a result of our effort on cost reduction project. For the cement market demand, you can see that for the Thailand market, the market dropped 9% compared to last year, b ut less negative number if we compare to last quarter.
For the ready-mix concrete, slightly dropped - 2% as well. For the ASEAN market, you can see Indonesia, Vietnam, and Cambodia, they have significantly improved in term of market demand compared to the last year. For our operation performance, our alternative fuel has increased to 40%, oh 47%, sorry, 7% increase from the last year. In term of our green product, our low carbon cement penetration rate has increased from 63% to 86% or so. At the beginning of this year, we have successfully expanded our EPD- certified low carbon cement into the global market including U.S.A. and Australia. In the second quarter this year, we have launched successfully a low carbon cement in Vietnam. This is the first low carbon cement brand in the Vietnam market.
Moreover, to meet our customer need, we have penetrate economy segment product across all the region in ASEAN. For example, we have launched 5-Star Cement in Cambodia, BEZT C ement in Indonesia, and ADAMAX Cement in Vietnam. For the outlook for the Thailand market, we anticipate that the demand growth, we expect to see the demand growth in the second half of this year, mainly from the government spending and the economic recovery. For the regional market, we can see some growth momentum in the region mostly from the government spending. For the highlight and our effort in the second half, we continue working on our cost reduction, by increasing our cheaper clean energy both in the Thailand operation and regional operation. Secondly, we diversify our product portfolio. As I mentioned earlier, we serve our customer both premium segment and economy segment.
Lastly, we continue to expand our low carbon cement to the new market with the value differentiation in term of quality and lower carbon footprint. So, that's all for the Cement and Green Solutions performance.
May I interject a little bit? Highlight. You could see that the cement, if you look at the market, it actually not good. But if you look at our performance, it's getting better and better. As [Non-English content] already said, half second half, we look at the brighter in term the cement and construction because the government budget already passed and now disbursed. I heard that about 80%, at least to last week, 80% already disbursed. The way that we adjust, as [Non-English content] said, is adjust on the competitiveness, on the energy price, on the cost optimization. More importantly, we have many cement you could see. [ Non-English content] already show the Rhino cement. Okay. If someone really want to have a very tough one, Rhino. We have the 5-Star. We have Adamax.
These are the thing that need to adjust to respond to micro segments of the market in order to serve. The green is a flagship, of course, but you could see that business has been adjusted significantly to answer to this demand, and the result is quite okay. Market is tough, but we are not stand still. That one I try to highlight. Because [Non-English content] is so polite, so I need to put some highlight a little bit. Okay.
Okay. Good morning, everyone. For the Smart Living and Distribution and Retail business in this quarter, overall performance has declined due to the seasonal factor. However, we continue healthy profitability in both EBITDA and net profit in the first half of the year. The revenue dropped 4% year-on-year from the soft demand in project and medium to low segment that [Non-English content] mentioned. For the Thai building materials market situation, building material in this first half is dropped 8% due to the residential segment. However, the commercial and government segment showed some recovery signs. For the regional market, demand slightly picked up in some countries that you see the demand in Vietnam and Indonesia also. We expect to see the positive trend in the second half of this year. For the Smart Living highlight, the journey toward inclusive green growth is gaining momentum. Here are some recently achieved.
One is we developed the SCG Ventilation Tile to help ventilate the space under the roof. The second one, we are expanding the SCG GREEN 'IN WOOD, which is made from bamboo, that offers the same beautiful look and feel. Our business has achieved THB 142 million in cost saving that we used renewable energies during the first half of this year, enhancing our overall cost competitiveness. For the Smart solutions, the solar sales momentum is continuing with strong growth in both segments, the residential, and the commercial, and industrial also. We drive the energy efficiency across the diverse building segment by expanding our smart building solution. We also developed a new model for the SCG HEIM with the 3.2-m ceiling to height is a new model for the customers. For the Distribution and Retails, we proceed to extending our business globally.
In India, we partner with the BigBloc Construction to run a lightweight concrete wall factory in Kheda, Gujarat. In Indonesia, our partner is Mitra10, leading modern trade retailer in Indonesia, opened two new branches in Sumatra and West Java, reaching to 50 stores in total. For the outlook in the second half, we anticipate to see the recovery of Thai market in both segments, the government segment and the private segment. For the regional prospects, it's recovery in some country. However, we still aim to achieve inclusive green growth as following continued NPD and HVA strategy and go with the smart solution with the new HVAC air scrubber model is smaller than the previous ones and improve the cost competitiveness to the solar energy.
We use the digitalization to improve our supply chain operation and reinforce our distribution arm in ASEAN and beyond, responsively to different needs in each area. That is all Smart Living and Distribution. Another part is SCG Decor. The SCG Decor, the performance in the second quarter showed positive signs in the EBITDA and net profit, have increased both year-on-year and Q-on-Q. The EBITDA was THB 910 million, increased by 13% year-on-year and 7% Q-on-Q due to the ability to maintain the selling price and implement efficiency enhancement, the project of the cost saving. Net profit was THB 283 million, also aligned with the EBITDA to increase 45% and 10% year-on-year, and 10% Q-on-Q. Revenue, however, we dropped 8% year-on-year and 3% Q-on-Q.
The market demand is still soft. EBITDA margin has improved to 14%, which aligns with the gross profit margin that increased 27%, and net profit margin increased 4%. In terms of the half year, the EBITDA was increased 7% and net profit was increased 36%, e ven though the revenue dropped 7%. On the margin improve, EBITDA margin in the first half increased 30%. The gross profit increased 26% and the net profit margin also increased, it is 4%. That is all for my part, [Non-English content] .
Good morning. I will start with SCG Packaging, which they already have the analyst conference on Tuesday, so I will just quickly recap that first half performance. For the first six months, sales revenue was about THB 68 billion, EBITDA THB 9.8 billion, and then net profit is about THB 3.2 billion. That increased both on year-on-year and half-on-half. The good results was contributed to SCG Packaging effective management of the raw material sourcings and also their continued effort in terms of the energy cost savings. Look at by country. Thailand performed as expected. Vietnam is doing much better than what we expect in the first place. But Indonesia performed a little bit weaker than we expected. On the financial part, starting from the net debt. At the end of June, net debt was about THB 290 billion, i ncreased about THB 20 billion from end of last year.
Net- debt- to- equity, 0.6x . Net-d ebt- to- EBITDA increased quite a lot from the end of last year to 5.7x. If you observed, the net debt level does not increase that much, but n et-d ebt- to- EBITDA increased from 5x to 5.7x . That is pretty much because of the lower EBITDA cycle of the chemical business. We have taken actions and we will continue to do so to kind of de-leverage our leverage position. [Non-English content] will explain more in details at the end, in terms of the measures that we have taken and the new measures that we will be taking. In terms of the capital expenditure and investment, f irst six months, it is THB 17.6 billion. A little bit more than half of that came from the chemical business on the ROC turnaround and also the Long Son Petrochemicals project.
Full year, we still expect the CapEx in the range of THB 35 billion- THB 40 billion. Please note this excludes the Fajar share acquisition that will take place in the third quarter. Despite the high leverage that I mentioned, I would say our financials in terms of balance sheets remain very solid. We have cash on hand at about THB 28 billion at the end of June, and t he composition of our loan portfolio remains pretty much unchanged. Majority came from debenture. It is majority in Thai baht, so majority of the interest is already fixed. That concludes my part. Sorry, I have one last slide. It is a dividend. So, yesterday, our board approved the interim dividend of THB 2.5 per share. That is equivalent to 49% of the payout ratio. This THB 3 billion dividend will be paid on the 23rd of August. [Non-English content] .
For us, in term of the net zero target, we are on good progress that we set with the Science Based Targets initiative at 25% in 2030. So, so far so good. Next is we doing really well in term of using the low greenhouse gas energy source. In domestic Thailand, you can see that we have been able to use biomass and consumer waste as a raw material for the energy use. So, now it is about 40% of our domestic cement consumption. In term of the low carbon product, as [Non-English content] already explained, we are doing quite well, consider the economic headwind. The low carbon cement is making good progress and good growth.
For Saraburi Sandbox, which is our inclusive broad-based ESG initiative to achieve the low carbon city, so i n term of renewable energy, we were able to work with the Princeton University to do the energy transition roadmap for Saraburi province and starting to do the study on how to scale up the energy transition for Saraburi. In term of the community, we work with the farmer in term of doing the develop the low carbon rice. So, we use the technique that using the wet and drying technique to grow the rice. So, we are making good progress, and also, we working very hard with the community to build a job for them, es pecially in term of the ecotourism and community forest. So, these are our initiative for sustainability.
On the Cleanergy. So, Cleanergy still have a steady growth. So, we are adding more and more megawatt. As I used to say, Thailand still need a lot of green megawatt. Now, our renewable energy portion is just 18%. Immediate target should be 30%, and later on, if we want to achieve the NDC and maintain our competitiveness in the overall industry, we need to go for the 50%. So, that why green megawatt is still very important for the country. Now, I start to separate into the operational megawatt and also the signed megawatt. So, that operational megawatt is 327 MW, and the signed megawatt is additional 475 MW. So, every month, we have a new customer joining our private PPA and every once in a while, we have a big lot of the government PPA.
We are developing this in Thailand and also working several projects in the region. Some of the key examples is Seagate now already be part of our private PPA, Linde, and SNF. You could see it get going. Another thing that we are working very hard and put a lot of effort on is to decarbonize the industry through the heat battery. This project already demonstrates the feasibility of the replacement of the boiler, especially those who use the diesel or the oil or the LPG for generate the steam. These are the things that are easily feasible to use this heat battery. Now, we working on 54 customers in various industry on the detail engineering and feasibility study to show them. You could see the demand is pretty strong.
We hope that our first unit in Thailand will be complete next year, and then that will create even stronger and clearer picture of these potential technologies. Clearly, it is still steady growth. We are moving forward on this new business segment. So, that is on our detail of the each business. Maybe I just touch on the outlook. The outlook is something that probably worth to discuss because if you see our fourth quarter, first quarter, second quarter, thing getting better and better and better. In term of the cement, in term of the packaging, in term of the building materials, SCG Smart Living, we start to see thing get improved. However, the big chunk is still in the chemical. As [Non-English content] already mentioned, the delay in the capacity in the first half will come in the second half. That means pressure will still be there.
The geopolitics, that will compress the trade flow, and that means the freight charge and also the trade flow will be the key volatilities. Globally, rising risk in my opinion. We look at it as a rising risk. Still highly uncertain. One thing for sure is tariff barrier will increase. And anyone become the U.S. president, so that elevated trade war is there. And Thailand, Thailand is something it's also worth mentioning. Tourist is good. If you just look at on the number of tourists coming in, visa, bringing more of the tourists, this is good, I think pretty clear. However, emerging risk of the slowdown in many sectors due to the elevated household debt and the bank also slow down in term of the credit lending, especially on the medium to low segment. That creates friction in the growth.
On another hand, the government already come and help on the government budget. You could see one force is pulling down, another force is pushing up, so y ou will see a uneven growth in the Thai economy. Vietnam and Indonesia, you see different pictures. Things get going in these two countries . That why our business strategy will shift very quickly to target to the growth. [Non-English content] already mentioned about India. This is one of the, for me, it's very important step that we put the manufacturing plant in India, and we can up and run and sell it all. This is a good start. India is very big construction market, and our technology, our product are needed. But we need to find a way to set up the manufacturing facility in India. If we can do it, I think long-term growth is there.
We are setting up the office in Riyadh to tap into the Saudi Arabian Middle East. That is another thing we are working on. In term of the chemical, as [Non-English content] mentioned, still in the trough. We see very slow improvement in the gap. Gap is pretty low now and still really, really slow crawling back. So, that is why we need to be very cautious, okay? We need to be very careful on the chemical. Long Son Petrochemicals with HSSE. We start up, but after that, we have to optimize it. That is the fact of life. This is not the first time we start up the new complex in the trough, but I hope the last time. Anyway, it is not the first time. So, we know what to do during this situation. Cement business, we enhance the competitive test in Southern Vietnam.
Better access to the OEM clinker grinding plant. We lack of the grinding plant in Vietnam, and now, we can access to the OEM of the grinding plants. That help. That will help in the long run. Efficiency improvement is there. You can see all the press. When we do the decarbonization, we are not paying in term of the sacrifice our return. But actually, we do it in a way that we become more competitive. [Non-English content] mentioned about net-d ebt- to- EBITDA. Our debt is not increased, but our EBITDA is still suppressed by Long Son Petrochemicals in particular. That is a fact of life. Even though the chemical Thailand operation is still profitable, but the quantum of the depreciation and interest of the Long Son Petrochemicals will pull us down. That is our worry. What should we do?
We will not just say that because of the Long Son Petrochemicals when we do not things. We face the facts and one of the things that we will do is streamline the CapEx as we have done all along. There will be more. Because if the outlook is so uncertain, okay, we have to put priority on our net-debt- to-EBITDA, so we slow down on other CapEx. Release cash from the working capitals, t hat is something we will squeeze further using the AI, using other operation efficiency. I think we can squeeze further of this working cap. That will go straight to the debt reduction. So, reassess and streamline the low performing business. This is a good time. When the water is low, you see all the issue, then it is time that we will cut and stop. Actually, we already stopped some for the express business, the SCG Yamato Express.
We stopped that one. Okay? Some of the green construction that is target for the general construction, we stop that one. Okay? You could see that the business has to be improved in term of the fitness. Okay? We have to do that. [Non-English content] and [Non-English content] already show that we adjust. Now, w e are not only for the premium segment anymore. We will serve our segment. We will serve, okay? You could see that we have Rhino, we have the 5-Star, we have ADAMAX, we have BEZT. This is the way to make it work. And energy efficiency will be the main and sustain long march because the more that we do on the energy efficiency, we can reduce carbon, we can improve our cost position. Strong financial position is important. We still have high cash.
But mainly because we are not quite so sure about the long-term outlook. Okay? So, if the things settle down, we see over the horizon, then we can optimize this. But so far, need to be prudent. Okay? So that's the mood and tone of the business situation and the outlook. Okay, [Non-English content].