Q3 23/24

Jan 25, 2024

Quarterly report

Summary

Q3 revenue rose 16% QoQ to INR 40 crore, while female condom exports were disrupted by port delays. Q4 guidance is INR 55 crore conservatively, with expansion, acquisitions and new capacity underpinning longer-term growth.

Ladies and gentlemen, good day, and welcome to the Q3 and 9M FY23 conference call of Cupid Limited. As a reminder, all participants' line will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch tone phones. Please note that this conference is being recorded. I now hand the conference over to Omkar Prakash from Cupid Limited. Thank you, and over to you, sir. Thank you. Ladies and gentlemen, on behalf of Cupid Limited, I would like to welcome you all for attending the Q3 FY24 earnings conference call today. By now, I assume that most of you have seen the financial results along with the press release we had published yesterday. I will go over a couple of highlights from the third quarter results. The revenue from the operation was about INR 40 CR, which was 16% higher than the second quarter of FY24. In terms of the net profit after tax, we were 73% higher as compared to the second quarter. One main point to note here is that the sale of female condoms were only INR 1 CR during the third quarter because of a major breakdown in the port operators back in South Africa, resulting in significant delays in the export of female condoms. Because of that, we had to stockpile that material at our factory in Nashik. The net result of that was that our inventory level as of December 31st had gone up to INR 23 CR. Now, looking at the fourth quarter, we are projecting a top line of between INR 50 CR and INR 55 CR, and female condom sales are expected to be approximately INR 21 CR. In terms of the exports, 89% of our sales were exported during the third quarter and only 11% were in the domestic market, which included both the B2C sales as well as the sales of the IVD kits. You may have noticed that in the press release, we had made three other announcements on three major decisions relating to, number one, bonus share issue, number two, share split of 10 to one, and third is issuance of convertible warrants to FIIs, raising approximately INR 385 CR. Without further delay, I would like to now open the conference call for the Q&A session. Thank you. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then one on their touch tone telephones. If you wish to remove you from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Are you and Mr. Aditya online now? Yes, sir. Yes, I'm online. Okay, good. The first question is from the line of Onkar Ghugardare from Shree Investments. Please go ahead. Yeah. Hello, sir. My question is regarding the warrants which you have issued to the FIIs around INR 385 crores. As you have already highlighted that you do not need any money outside. Whatever money which is there in the balance sheet is sufficient for expansion of the new facility. I would like to know exactly what is the purpose of raising this INR 385 crore. You would be saying that for future need and all that, but I would like to know the exact reason for this. Are you planning any acquisition or anything else? Yes. Hi. We are looking at using a very small portion of these sums for working capital requirements. That is something I can definitely mention. Other than that, we are looking for a strategic acquisition outside India also, if not in India. We will be earmarking these funds for that purpose. This acquisition is related to the business which you are currently doing in terms of condoms or IVD or anything else apart from this you are targeting? Condoms and IVD range. Okay. Includes both, right? Condoms and all IVD. Yes. Okay. When can we hear about this? Any specific timeline you would be able to give for this acquisition? Well, we have to make sure we use the funds for the purpose for which we are raising them. We have clearly defined the purpose, and we also have oversight body making sure that we use the funds for what we say we're using the funds for. Yeah. The purpose of the fundraise is for the acquisition, right? Mostly for the acquisition. That's what I'm asking. Yes. I mean- I cannot give you anything other than that we are making sure that we will use these funds for an acquisition. I cannot mention which company. I am not asking for any company, I am asking just what would be the timeline for this. A timeline, but all our preferential, say, issuances, the funds which we are supposed to get will be received within 18 months. Okay. Maybe we can expect something in maybe a year or two, right? Yes. We are working towards that. Okay. If you could, I know you will not be giving more about this, but what size of acquisition this could be? How large it could be? What kind of opportunities it will open up because of this? Okay. The opportunity something, an acquisition like this will open up is it will increase our product line within the condom segment. Simultaneously, it will give us some faster approvals for our IVD segment because the target company has all those approvals. Apart from this, I cannot share anything else. Okay. More product, you mentioned, what exactly more products we can talk about in terms of condoms? In terms of the condom market, apart from there is a latex condom, there is a polyisoprene condom, and there is a polyurethane condom. These are the three products which are there in the condom market. Currently you are not present in any of them? We are only present in manufacturing latex condoms. So with this acquisition, you would be adding two more types of condoms in your kitty? Hopefully, yes. Okay. All right. Just wanted to ask another question, you have issued ESOPs to the employees. May I know these are to what, second tier, third tier of the employee or to the promoters or what kind of ESOPs are these? Why the issue price is at INR 140 when the current market price is at INR 1,750, INR 1,800, and you have issued warrants to the FIIs at around INR 1,750? The issuance of ESOP, the board meeting took place in August of 2022. At that time, the board who issued the ESOP in which Omkar was a part of, decided an exercise price of INR 140. Post that, we don't want to change the ESOP in any way, shape, or form because there's been no material change in the company on the day-to-day functioning. We have gone for those issuance, and we've been able to also get an agreement from the existing people we issued the warrants to, that they'll be letting go of 50% of the issuance and we'll be redistributing them to more employees within the company. Okay. This is to the first level management, second level management? What can we color on that? Key managerial personnel. This includes no promoters. Okay. It doesn't include any promoters? Yeah. Okay. Just wanted a broad view on this. When you acquired the company, the total market cap of the company was around between INR 300 crores to INR 400 crores, right? Yeah. Yeah. Now you are issuing shares worth around INR 400 crores. So what gives you the confidence to issue like INR 385 crores to INR 400 crores when the market cap of the company was around, let's say 6 months back or 6 to 8 months back, was the total 100% of that issuance? Well, we have doubled down our efforts on focusing on selling female condoms to other geographies, other main geographies we are selling to. We have started with a B2C presence in all the distribution channels in India. Simultaneously, we have brought about the idea of acquisition out of India also to our prospective investors who are going to be participating in the preferential share issue. We have shared projections to make sure that they are in sync with our ideology to why they should participate in this preferential issue. We are making many strides and jumps to make sure that we are able to garner sales and forward-looking numbers going forward to the best of our efforts. These investors are mostly financial investors, right? What investments are you referring to? What No, no. Investments, I mean the FIIs to whom you are issuing warrants, they are mostly financial investors, right? Yeah. They are investors in the equity market, yes. Correct. So there won't be any board position for them, right? No. The board position comes about if any one of the FIIs are holding 5% or more. None of them will be holding 5% or more. Okay, so you will be issuing around 22 lakh shares. So around how much equity dilution we can expect, and what's the percentage of this? Which fund is giving how much money to you? You haven't specified that. Yeah. We have close to 22 lakh split amongst six funds. We will be sharing the names in the coming disclosures. Each fund will be having a dilution of 2%-3%, like having an expendable share ownership of 2%-3%. This is share ownership post-dilution. This is mostly equally distributed, 22 lakh shares among all the six participants. No, it is not equally distributed. Okay. Some are holding 4 lakh, 3 lakh, something like that. Mm-hmm. You will be making a disclosure about that, right? Yes, we have to. Yeah. Correct. Okay, we can expect that. Okay, fine. I was asking about what kind of equity dilution it would take place because of this fundraise. You are raising around INR 400 crores, so how much equity will be diluted? You can do the math. 22 lakh shares will be added to- our pool of 1.3 crore. Correct. So around 14%-15% of dilution. Yeah, 15% of dilution, yes. Okay. In terms of acquiring of the land parcel, where are we? What is the progress on that front? We have acquired the land parcel. Yeah. I mean, the timeline which you have given, say, in around 2 years you would have already commenced the new lines. That stage, right? That stage. Okay. Any other initiatives which you have taken in the last 3 months after the last conference call? We have looked at expansion in other geographies via acquisitions. Simultaneously expansion not limited to other geographies, also India. Okay. Any update about U.S. foray, and where is the study? At what level the study is going on? Whom so? Hello? Hello? Yeah. Could you please repeat the question? I was asking where are we in terms of the study which is taking place to foray into the U.S. market? I am sorry. Could you please repeat the question? Yeah. The question is that we were doing a study to get into the U.S. markets, right? For female condoms. Mm-hmm. Yeah. Where are we in terms of that study? At what level we have reached? When can we see the conclusion of that study, result of that study? Now- Getting approval of female condom for U.S. market. The study is going rather slowly in South Africa, and also our discussions with the US FDA are still going on. They have raised many new questions which we are in the process of replying. I would say we are about one to one and a half years away from any positive results from US FDA. Okay. Can we expect something in FY 2026, maybe? Yeah. Sometime in 2026. How certain you are that you will be getting the approval for this after completing the study, whenever that study completion takes place? We are going through a very detailed evaluation process with the US FDA, and they have raised many questions. One of the important questions is that part of that study we are doing in South Africa should be done in U.S. with U.S. participants, which of course will be very expensive. We are still discussing this issue with them. Okay, thank you. Another question is on the sales front. When can we significantly see the sales going up? They are hovering around this INR 40 crore mark for last couple of quarters and years, I guess. Aditya, if you can answer this question. Yes. We will be increasing our capacities in a staggered manner post this line acquisition. Also, we will be able to do it more rapidly post our acquisition targets end up getting closed, the deals getting closed for them. We are hopeful for that. One clarity I can give, in the coming two quarters, you will be able to see, at least by end of this year, 2024, three to four dipping lines being introduced, and thereby giving us a further capacity of close to 300 million units of male condoms. That will help them to augment our sales numbers also. Currently, we have 480 million units of male condoms being manufactured. Sorry, capacity of 480 million male condoms. Yeah. You ended FY 2023 with around INR 160 crores of sales. This year also, I guess it would be around the same level, give or take INR 5 crores-INR 10 crores here and there. For FY 2025, how significant jump we can see in the revenues? So- Given all what you have mentioned. I can talk clearly about FY 2024, as of today. Om sir will also throw some more light on it. We have a lot of female condom sales, which have not commenced for this entire financial year. That will be dispatched by—those, not dispatched, but those sales will be booked this quarter, January, April quarter. You'll be able to see a very big push in sales from the female condom side, and that will help us contribute to a much higher PAT of close to INR 15 crores and a top line of INR 60 crores-INR 65 crores by this quarter end. Yeah. Mr. Garg said that you would be targeting around INR 50 crores to INR 55 crores. Hello, sir. I mention- Sorry to interrupt. Yeah. I request you to return to the question queue for follow-up question. Yeah As the several participants are waiting for their turn. I will, but the question is unanswered. I just request the management to address this, and then I will get back in the queue. Okay, sir. Yes. We do project conservatively INR 55 crores, but I see it on the pipeline of INR 60 crores, INR 65 crores. Okay, thanks. I will get back in the queue. Thanks. Thank you. Our next question is from the line of Sharad Parkhe, an individual investor. Please go ahead. Hello, am I audible? Hello. Yes, sir. Good evening. What is the current order book of the company, and can you please split it out in terms of domestic and international market? Hello? Hello. Yes, Om sir. Shall I repeat the question? The current order book is INR 80 crores. For the domestic and international split, it would be 88% international and 85%-90% international, 10%-15% domestic. In terms of the revenue mix, how much do other reproductive healthcare products of the company contribute? Pardon? In terms of revenue, how much do the other reproductive healthcare products of the company contribute? Which of the healthcare products? Uh-hmm. We just have one product in that segment, that is our pregnancy test kits under IVDs. Is it that? Okay. Known as Cupid Sure. Okay. Other than that, we are in the contraceptives segment with our male and female condoms. Okay. What is the competitor profile for IVDs? Could you please elaborate more on that? What is your competitor profile? Competitor profile. For IVDs. Well, we have several test kits. We have eight test kits at least, which we are currently undergoing clinical trials for a few of them. That is primarily the malaria test kit. As well as the pregnancy test kits and four test kit trials for CE mark. We will be getting our certifications in 2 to 3 years for CE mark and WHO. After getting WHO certification, we will be able to participate in GeM orders after 2, 3 years. When it comes to participating in any domestic state level tenders, we can participate between September of 2024 and May of 2025. There are also a list of countries which will be participating in after 3 years of manufacturing experience, by May of 2025. That will be pertaining to African countries and a few Latin American countries. Okay. Thank you. Thanks. Best of luck for your future. Thanks a lot. Thank you. Thank you. Our next question is from the line of Chandra Gupta, an individual investor. Please go ahead. Am I audible? Yes. Okay. Thank you. Thanks a lot for this opportunity. I have two questions. First is on this retail distribution that we are planning in the Indian domestic market. Can you please elaborate on what all has been done in this area till now, and what are the plans so far? Can you give some details on how we are going about building the retail for it? Regarding the retail for it, we have right now our sales team in PAN India from the intensive like sample in our. We have zonal managers, we have area sales managers, we have sales executives. They end up selling our product to all the different geographies in India. We have representatives in the north geography populated over there because they are very well-versed because of the education levels of customers over there is very high, so they are able to sell more product. Simultaneously, we have our zonal and area sales managers in our east and west. The product distribution is different. In north we primarily focus on selling male and female condoms. Simultaneously, in the east we focus in selling male and female. Whereas west and south, we focus in selling male condoms. Okay. Have we launched any new products as well? Or the existing product, and how many products we have and under what branding are we doing it? We are going to be bundling our product going forward, yes. We will be looking at getting our deodorant sprays bundled with our existing products. We have got formulations for the same. As of today, we are selling our product under name of Cupid only. We will be seeing our product as Cupid Strawberry, Cupid Butterscotch, Cupid Vanilla, and our pregnancy test kits as Cupid Sure. Okay. As of date, if I ask in how many retail outlets our products will be available? As of date, we have reached at least 1,000 retail outlets. 1,000 retail outlets you are saying? Yes. Okay. What is the plan going right? I mean, in the next couple of years, what kind of reach can we expect in this? In the next couple of years, the more money you spend on distribution, the higher the reach, and it is a very long process of trying to get a big reach. We do not want to be uncomfortable because we spend too much money on the retail segment and blow it up till we see good traction from these 1,000 stores we have in that sample. Okay. These 1,000 are across the country or any particular geographies that is being targeted, like some kind of a test marketing? As of now, the test market is a northern territory of India. Okay. How much funds have you earmarked for advertising and promotion? Or any plans to hire a brand ambassador or something like that? No plans as of now to hire a brand ambassador. We are working on a day-to-day basis to get funds allocated to it. It is not a big portion of our overall expenditure. It is less than 10% as of today. Okay. Fine. The second question is about this overseas acquisition that you have spoken about. What kind of returns can we expect from this? Do you have any target benchmark IRR or something that you have in mind? On the overseas acquisition, we will be looking at first, primarily increasing our product lines in the condom segment. Because in India, we see primarily flavored condoms being sold. Flavored condoms and dotted condoms and textured condoms. Trying to get condoms which are non-latex is a very big attribution to sales we do foresee in the future. Okay, and this acquisition will be in developed markets or is it in Asia? It is somewhere in Asia and out of Asia, like in other geographies where they make condoms. Sorry? Asia? Sorry. Geography. As of today, when it comes to manufacturing setups, Asia is the best place to be for condoms. And there are a lot of companies who operate in other geographies who have the manufacturing setup. No, you are not. Okay. We will be looking to buy a manufacturing setup rather than the brand. Okay, more of manufacturing setup other than the brand. Okay. Yes. Okay, fine. I think that is all from my side. Thank you. Thank you. Thank you. Our next question is from the line of Dikshant from BD World. Please go ahead. Yeah, Dikshant. Thank you so much for the great guidance that you have been giving us for so long. I have two particular questions. One is on our operating margin. As you just mentioned that we would be increasing our sales rates now in the coming two to three quarters, what do you think our operating margins are going to be, especially given that you would also increase capacity of your condoms? Our operating margins, as you can see, are in the low 20s. If you see year-on-year, we will be working towards getting them to 25% as we scale. Mm-hmm. Okay. This quarter's margin were around 31.5%ish, right? Okay. When you mean to say operating margin, we have mentioned EBITDA? Correct. Okay. Yes, let me just go on the screen, sorry. Yeah. Sorry. I was talking PAT margins. Our EBITDA margin is 30.3% here. Looking to get our PAT margins over and above 25%. And our EBITDA margins, it would be best if we keep it above 35% to be sure. Well, my second question is on the cash conversion cycle. In the last phone call, we were discussing that this is a major focus for you, and I'm sure that one of our major requirements while you acquired this business was better cash conversion cycles because our ROEs will improve there. Can you shed a bit of light on this, on how we have improved this so far, and what kind of cash conversion cycle we can see by the end of this year? That's why. We are improving this as of today by increasing our list of suppliers. Simultaneously improving our terms with the suppliers. That takes care of the inwards part. When it comes to outwards part, apart from a few key clients which we only distribute to, that includes UNFPA, we are not pushing on them to improve their payment terms. We are happy with their payment terms because they are very ironclad contracts, which they end up signing with us. Yeah. Apart from them, any other distributor which has a specific order value below a certain amount, we end up getting behind them to improve their payment terms. Aditya, in order to just quantify this a little bit, our inventory days have been north of 200 days for the last three years, and since the last quarter, the management has been focused on the conversion cycle. Are we making our inventory days better? Are we making our payable days, I think the receivables from the clients better? Quantify it with a little bit of numbers that is helping us, please. Yes, I can quantify it with a bit of numbers by saying that we will be improving it by 20%. From 230-ish days, we can see a reduction of, let us say, around 25, 50 days, 40 to 50 days, something like that? Yeah, 40 days. 45 days, yes. Sure. Okay. The inventory days have been hard because a lot of inventory for Afini condom got stuck up Yeah in the port. That is a very big reason why. You did mention this the last time, and thank you so much for the guidance. Just a few follow-ups, quick ones. One is on the current sales operations for our retail business. Glad to know that we have crossed distribution. Could you sort of tell us what are our repeat business right now, or is it too early on that data? All our repeat customers are, like all our big clients are still ordering with us. On the retail side, Aditya? Sorry. On the retail side, Aditya. Like the smaller business that we are just starting up right now. Retail, repeat? Aditya, I mean to ask on the retail side, you also mentioned earlier during the call that we have around 1,000 stores that we are catering. Could you just help us out with the repeat business there? Some data there on what kind of ticket price is it per store. What is this 1,000 stores converting into as our revenue? How is it guiding our revenue forward, and how is it driving our revenue till now? It is not guiding our revenue in any way to highlight in a good way just now. It's a very small part of our revenue. We've just started selling and started increasing our retail network from mid of December onwards. Yeah. It's been less than- Completely makes sense. Congratulations again on getting those first 1,000 because you guys are doing great there. I saw a couple of products near my store, so happy to know that you guys are improving there. Thank you so much. Thank you. Ladies and gentlemen, a reminder to all participants, you may press star and one to ask questions. Our next question is from the line of Onkar Ghugardare from Shree Investments. Please go ahead. You mentioned that current order book is around INR 80 crores. What is the split between female and male condom, and till when you have to execute this INR 80 crore? I am sorry. Out of the INR 80 crore order book, INR 30 crore is for female condoms and INR 50 crore for male condoms. By when we have to execute this order? We are expecting some new orders in February from South Africa, Brazil, and Government of India. This South Africa, Brazil, and Indian government orders are for female condoms or male condoms, or both? South Africa, we are expecting both female and male condoms. From Government of Brazil, we are expecting female condom orders. From Government of India, we are expecting male condom orders. Plus we have our regular customers from UNFPA and from the private sector as well. We are expecting over the next 2 months, in February and March, a significant quantity of orders. So as far as the Brazilian order and South African order, the tendering have already taken place or at what stage it is? No, the backlog was for female condoms, which I mentioned will be cleared in the fourth quarter to the tune of about INR 21 CR. Correct. That is the backlog you are talking about. But just now you mentioned that you will be receiving orders from Brazilian government for female and African government for both male and female. So I'm asking, these are the new tenders and has the tendering already taken place by the governments? We don't know the exact volume and the amounts of these pending orders. Correct. At least, I was asking whether the tendering has already taken place or not. As you are saying, you will be expecting orders in February and March, significant orders. That means by now the tendering must have already taken place or it would be taking place shortly, right, in order you to receive the orders. No. For example, for South Africa, we are starting in the third year of the three-year long-term contract, and we could be easily getting orders worth about INR 50 crores, including both male and female condoms. In Brazil, we are expecting a tender to be floated for female condoms in February, and we are expecting an order of about INR 25 CR. With Government of India, we have already announced orders worth about INR 15 crores. However, we are expecting one more order in next couple of weeks, which would be about INR 10 CR. In addition to all this, we are getting regular orders from UNFPA, and I would expect INR 30 CR orders for the first quarter of FY 2025 from UNFPA, mostly for male condoms. Okay. As far as the current quarter is concerned, the January to March quarter, you are expecting around INR 50 crores from Africa, INR 25 crores from Brazil, and around INR 10-15 crores from Indian government, right? So around INR 80-85 crore orders in the current quarter you are expecting. Yeah, correctly, to be delivered over the next 12 months. Correct. You would be receiving the orders in the current quarter, right? Yes. Okay. The next question is to Aditya. Last time you had mentioned that around INR 160 crores of the sales, which you will be delivering at, say, end of FY 2024, you will be doubling it in the next three to four years, given the expansion plan which you have. This was done after Hello? Hello. Yeah. I was asking, when you projected this, the acquisition was not planned, right? Yes. Now that you are planning to do the acquisition, what kind of sales you are looking at, given it's a big acquisition? When it comes to an acquisition, whether it is in India or whether it is out of India, it would impact us very differently. If it is an acquisition in India, nobody in India is making polyisoprene or polyurethane products. Outside India they are. The entire sales outlook will change. We have to start looking at private players who are already selling such condoms out of India to be contract manufacturers for if we make acquisitions out of India. Whereas within India, we can look at government tenders in and out of India, as well as private players in and out of India, because there is a very big demand for latex condoms because of the constituents of latex as a polymer. What you are saying is that nobody in India is selling, neither manufacturing this type of condoms, right? Nobody in India is manufacturing such condoms. Okay. PI or PU condoms. Okay, but the selling is taking place? The selling is taking place via imports. Via imports they are taking place. Is it a big contribution to the overall selling of condoms, or how much is the percentage currently in India? It is very minuscule because of the price. Price barrier, basically. Okay. What difference does it bring to the table apart from if you look at the other condoms, these condoms as compared to normal condoms? Well, just looking at how the market is used out of India is an indication where India's consumption will tend towards in the next 10 to 15 years, honestly speaking, towards such materials. This is like a more premiumization of condoms? Is it like that? Yes. Okay. If you can talk more about this, where in Asia this trend is currently playing out. If you can tell more about that. This trend is playing out in Malaysia, China, Thailand. Okay. Indonesia, all these countries. Okay. If you can compare it with, say, how it was, say, 10 years back and how it is currently. If you can give a comparison of that in these countries which you mentioned. Well, they have been selling. India is very price sensitive as a country from a consumer level. Nobody has introduced these condoms in India. On top of that, there are, if I am not wrong, certain barrier to entry when it comes to manufacturing such condoms in India. That is why nobody has also. Whereas out of India, the involvement is quite different. People are ready to consume better, more premium prophylactics, condoms in those other markets. Yeah. But if you can give an example, say for example, in China, let's say 10 years back, if one condom of that kind was sold. Now, how many condoms are being sold currently? I can't give any indication for China or any other- No, I'm not asking you for indication. Whatever already trend is there and whatever the real facts are there, I'm asking just that. Because you must have studied the trend in those markets, right, before thinking about this acquisition. The only trend we have studied as of now is what are the sales of such companies who are doing job working for private clients in the EU and in the U.S. So those are numbers which have been shared with me in confidence. I cannot disclose because that's only business I'm concerning, but I'm not looking at selling such condoms in India per se. Because as of now, those condoms garner a very high price as imports. Okay. If you just exclude this acquisition part. Hello, sir. Sorry, sir, to interrupt. Sir, there are people waiting in the queue. Yeah, I will get back into it. Thank you. Okay. Thank you. After this question, this will be the last question for the day. Our next question is from the line of Rakesh from White Pigeon Investment. Yeah. Hello? Hello. Quantified in revenue and profitability terms, what are we expecting from the capacity expansion announcement the company in this one? In terms of the revenue expansion, we have already made a press release regarding it. We are expecting a top line of not INR 320 crores but close to INR 400 crores post commissioning of the expansion plan, and simultaneously we are expecting an EBITDA of upwards of INR 100 crores. Okay. Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to Mr. Aditya Halwasiya for closing comments. Yes. Hi, everyone. As we come to the end of this earnings call, I want to take a moment to extend my deepest gratitude to all our shareholders and employees. To our shareholders, thank you for your continued trust and investment in us. Your faith in our potential fuels our drives to innovate, expand, and excel. We are committed to delivering on our promises and maximizing the value of your investment. To our incredible team of employees, your hard work, creativity, and perseverance are the reasons we are able to celebrate our achievements today. Each of us plays an integral role in building our future, and I am profoundly thankful for the opportunity to work alongside everyone at Cupid. Looking ahead, we are excited about the opportunities and challenges that lie before us. Thank you once again, everybody, for joining our earnings call. Thank you. On behalf of Cupid Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.