Good evening, everyone. Thank you for joining the call on behalf of the IR team of Luk Fook. Today, we have Dr. Kathy Chan, Executive Director and CFO, and Ms. Nancy Wong, Executive Director and Deputy CEO with us. The speakers will talk about our financial review for [H1 2019] interim results. We will go through the corporate presentation, which is already uploaded onto our corporate website, followed by the Q&A session. May I have the time to start the presentation, please?
Okay. Thank you, Stephanie. Ladies and gentlemen, thank you for joining Luk Fook's [H1 2019] interim results conference call. I would like to start with looking at our financial highlights, followed by financial review, then our future plans and strategies. The details are recorded in the corporate presentation, which has been uploaded to our website. We will go through that with you on the phone now. With a relatively high base, strong gold price, and the continuing impact of Hong Kong social incidents and U.S.-China trade war on market sentiment, revenue decreased by 19.8% to HKD 6.3 billion, while operating profit decreased by 21.2% to [HKD 660 million], and profit attributable to profit holders decreased by 25.4% to HKD 496 million. The basic earnings per share decreased by 24.8% to HKD 0.85.
The group proposed an interim dividend of HKD 0.50 per share, with dividend payout ratio of 59.1%, which is highest in our official dividend payout policy of 40%-45%. The group has a net increase of 129 Luk Fook shops during the period under review, out of which 126 were in Mainland, including net addition of 131 licensed shops and net reduction of five self-operated shops. We also net added three shops in Hong Kong and Macau. With the assumption of multi-brand strategy, we have net added [audio distortion] Goldstyle and three tier-two individual shops, which were two independent brands developed from our popular product collections. We also have net reduced from three gold shops in the period under review. As of today, including with the brands, the group has more than 2,000 shops worldwide altogether. Now let's go into the details of our financial performance.
During the period under review, despite the drop in revenue, overall gross margin increased by 6.2 percentage points to 29.9%, attributable to the substantially increased gold price and higher sales mix of gem-set jewelry products. Gross profit therefore rose by 1.2% to HKD 1.9 billion. On the other hand, the total operating expense decreased by 8.2%, and revenue decreased faster than the operating expenses. As a result, OE revenue ratio, therefore, increased to 17.2%. Besides, with the decline in diamond sales leading to the reduction in diamond purchases, which resulted to significant decrease of VAT refunds in relation to diamond import in Mainland by approximately HKD 122 million.
The turnaround of a gold hedging profit of [HKD 62.5 million] in period last year to a loss of [HKD 96.6 million] this year contributed by the high gold price, together with an impairment provision of HKD 57.1 million as a result of Hong Kong Resources Holdings failure to redeem the convertible bond issued to the group on the maturity date. Operating profit, therefore, decreased by 21.2% to [HKD 660 million]. Our operating margin maintained a stable level of 10.5%, and net margin decreased slightly by 0.6 percentage points to 7.9%. The group's financial position remains healthy. By improving our team cost and reducing inventory balance, our inventory decreased by 15% during the period under review against the margin balance. It turns a low level of [audio distortion] , which is even lower than the level in September 2018.
However, with the fastest drop of revenue, average inventory turnover days grew by 99 days to 371 days. With the satisfactory drop in inventory levels, the group went back to net cash position with a balance of [HKD 663 million]. Our ROE was 9.6%, which was [audio distortion] percentage points more than the same period last year. The NAV per share was [HKD 17.63 as at September 2019, which was 4.1%] higher than the balance as at the same date last year. During the period under review, despite the double-digit drop in revenue, benefit from the substantially increased gold price and higher sales mix of gem-set jewellery products, the overall gross margin increased to a record high of 29.9%. Meanwhile, the operating margin and net margin in the past few years remains at a quite stable level.
With an impact from high gold price, high base effect, recent social incidents, and U.S.-China trade war, Hong Kong local overseas revenue recorded a significant decline of 26.1% to HKD 3.6 billion, which accounted for around 57.6% of the total revenue. With a slightly improved segment profit margin to [59%], the respective segment profit decreased by 21% only, to HKD 324 million, accounting for 38.8% of the group's total. In the Mainland market, the revenue declined at a relatively milder manner by [9.2% to HKD 2.7 billion]. Its segment profit improved by 16% to HKD 510 million. Retail business has 1,200 revenue stores. As explained earlier, due to the continuously weakening retail sentiment, retail revenue decreased significantly by 25.3% to HKD 4.6 billion, representing around 71.2% of the total.
However, the segment profit decreased by a much lower magnitude of 10% only to HKD 357 million, mainly due to the high gross margin as a significant increase in gold price and a high gem-set sales mix. The segment profit contributed to more than [42.8%] of the group's total. Despite the increase in number of licensing shops with a drop in the wholesaling of diamond products in Mainland, the impact of which has been partially offset by the satisfactory sales of fixed price gold products. The group's market revenue decreased by 6.4% to almost HKD 1.4 billion, which represents 21.8% of the group's total. The segment profit decreased by [8.6% to HKD 165 million], accounting for around [20%] of the group's total.
On the other hand, with increased number of licensing shops, the licensing income grows by 15.8% to HKD 442 million, which was 7% of the group's total. The segment profit increased by 14.4% to HKD 312 million, contributing to 37.4% of the group's total. With the decrease of demand due to the high gold price, gold and platinum sales recorded a significant decline of [32.1% to HKD 2.7 billion, representing 46% of the overall sales.] With a record high gross margin of [audio distortion], its gross profit increased by 6.9% to HKD 563 million, representing 35.9% of the group's total. On the other hand, sales of gem-set jewelry products dropped by 9.7% to HKD 3.2 billion, accounting for 54% of the overall sales.
Gross margin of gem-set jewelry products improved by [1.5 percentage points to 31.7%] and with a high gold price as well. Its gross profit as a result only decreased by [5.2% to HKD 1 billion, accounting for 54.1%] of the overall gross profit. Now let's go to slide 12. Consumer expenditure capability in Hong Kong and Macau market is weakening. As a result of the high gold price, the high base effect, and with the substantial decline in number of visitors from Hong Kong due to the recent [audio distortion] , our retail revenue from Hong Kong and Macau markets decreased by 27% to HKD 3.5 billion, accounting for 97.5% of the market's total. Because of the increase in gross margin driven by the high gold price, the segment profit margin improved by 0.5 percentage points to 7.4%.
Its segment profit is reduced by 21.6% only to HKD 263 million. The wholesale business revenue decreased by 21.8% to HKD 58 million. However, sales of diamond sales with high gross margin and reduction in other price arising from decrease of inter-segment sales, the segment profit decreased by 49.3% to HKD 29 million. The segment profit margin declined to [50.5%]. If the segment profit of wholesale business included the profit of [audio distortion] , if including inter-segment sales in the denominator, adjusted segment profit margin to be 2.9%, which is a more stable level. Apart from that, continued to benefit from the increase in designated supply consultancy services revenue due to the increase in number of licensing shops. Hong Kong licensing income increased by [92.8% to HKD 32 million].
The segment profit increased significantly by [87% to HKD 32 million]. In Mainland, with the high gold price and continued impact of the U.S.-China trade war and weaker economic conditions, retail revenue declined by 18.3% to HKD 943 million. However, contributed by rising gross margin due to the high gold price and high gem-set sales mix, its segment profit increased by 54.1% to HKD 94 million, and segment profit margin improved by 4.7 percentage points to 10%. Because of the unsatisfactory sales of diamond products, though impact of which has been partially offset by the satisfactory sales of fixed price gold products. Revenue of the wholesale business in Mainland China market declined by 7.3% to HKD 1.3 billion. Due to the increased gross margin contributed by the high gold price, segment profit increased by 10.5% to HKD 135 million.
With an increase in number of licensing shops, licensing income in Mainland increased by 12.3% to HKD 410 million, and the segment profit rose by [audio distortion] , enjoying segment profit margin of almost [17%]. Let's go to slide 14. During the period under review, in terms of retailing business, the Hong Kong market recorded the most significant drop of [31.6%] in revenue from [HKD 2.57 billion], due to the reasons explained earlier. High gold price affects gold and platinum products, which recorded a drop of 35.8% and 21.5% in Hong Kong, Macau, and overseas markets, and Mainland markets respectively. All gems and other sales makes increased in all markets, reaching [45% and 34%] in non-Mainland and Mainland markets respectively. Let's go to slide 16 now.
With high gold price, relatively high base, and the continued impact of [audio distortion] and U.S.-China trade war on market sentiment, our overall SSG was -24%, with Hong Kong and Macau markets recording -25%, and Mainland recorded -16%. Overall speaking, [audio distortion] SSG performance than gold and platinum products. Due to the strong gold price, gold and platinum sales recorded a decline in revenue and quantity, but an increase in ASP in all markets. On the other hand, with the growing popularity of daily wear appropriate pieces, such as [audio distortion] collection, which was categorized under gems category, gems products have enjoyed a volume surge and yet a substantial decline in ASP in Hong Kong and Macau markets. Slide 17 shows same-store sales growth for this half year in licensed shops in different strategic regions in Mainland.
Overall speaking, licensed shops performed better than outlet office shops, as licensed shops normally are located at better locations and have active gems business in Mainland. During the period under review, the same-store sales growth of licensed shops was -6%, while that of [audio distortion] shops was -16% [audio distortion]. The [audio distortion] of licensed shops recorded positive growth of [4%], while that of outlet office shops was a -12% drop. During the period under review, the SSG in Hong Kong and Macau declined significantly as a result of the high base effect, strong gold price, and continued impact of social [audio distortion] in Hong Kong, and U.S.-China trade war, while Mainland market declined as well because of high gold price and U.S.-China trade war.
Up to date, from October to the first three weeks of November, with a massive low base, Hong Kong market performed with growth track attributable to an increased in gold sales. The same-store sales of both type outlet office shops and licensed shops in the Mainland market saw a progressive narrowing decline. Meanwhile, the same-store sales drop in Hong Kong did not improve. Thus, the downside risk of the group's business will continue into the second half of this financial year. The group therefore expects a double-digit drop in terms of annual revenue and profit in this financial year. Let's look at slide 20 now. We had total operating expenses of HKD 1.1 billion, representing a decrease of [audio distortion]. With revenue declining faster, the total operating expenses to revenue ratio increased to 17.2% during the period under review.
With the adoption of the new accounting standard, part of the rental expense is classified into [HKD 14 million] financing cost to lease liability and [HKD 230 million] depreciation of right-of-use asset, which was included in depreciation and amortization. If we include the above key expenses into the total rental expenses for year-on-year comparison, it would be [HKD 370 million], representing a 7% drop year on year and a 5.9% expense to revenue ratio. The [TOE] to revenue ratio in this case will increase to 17.5%. There are [22] shops in Hong Kong and Macau subject to rental renewal in FY [audio distortion] , accounting for around one-third of the total number of shops we have.
Given the current situation in Hong Kong, we have actively negotiated rental reduction for our renewals and short-term rental discounts, and we expect rental renewals in the current financial year to have a single-digit decrease and a double-digit drop in the next financial year. With our keen focus in reducing inventory, the inventory balance reduced by [8.2% to HKD 1 billion] as compared to the period last year. Inventory for gold and platinum decreased by 9% to HKD 5.3 billion, while that of gems category decreased by [audio distortion] . With an expected downturn in sales since June 2019, the average inventory turnover days have increased to 371 days. Gold inventory turnover days grew by around 100 days to 258 days, due to slow gold sales resulted from high gold price.
In the first half of FY 2020, the group incurred CapEx of HKD 471 million, in which HKD 52 million was used for shop renovation in [Tsim Sha Tsui], and HKD 210 million was used as prepayment for acquisition of offices and showrooms in Xi'an and Shenzhen respectively. During the year under review of the deterioration in macroeconomic condition and an impairment provision of HKD 57 million as a result of HKRH's failure to redeem the CB on the maturity date. Most of the CGS operations related and HKRH investment activities widened. The group is proud finding opportunities to enhance our edge for the recovery of this debt and present interest. Let's look at the group's future plans and strategies now.
In lieu of the up-to-date business performance, the group will reduce the number of shops in areas which are continually impacted by the civil unrest in Hong Kong and search for opportunities to open new shops in the Macau market. Expect to have three net shop additions in Hong Kong, Macau market for the full year. The group will also actively seek expansions of opportunities in overseas targeting to achieve a net addition of three shops in overseas markets. Further to the Mainland market, as we have net added 126 shops in group under review, we have raised our full-year store expansion targets for net addition of not less than 200 shops, including 30 Goldstyle and [audio distortion] shops. Despite the uncertainty of macroeconomy regarding U.S.-China trade war and the social incidents in Hong Kong, we should anticipate a continued growth of the middle class population in Mainland.
The group remains optimistic about the mid to long-term business prospect. With the three main focuses, namely supply chain management, Mainland market expansion, and strategic growth in mind, we look forward to bringing our business to new heights in the near future. In order to further enhance the group's competitive edge, the group will focus on strengthening supply chain management through various means. We will try our best endeavor to identify the right products, the right time to allocate products to market at the right time, and implementing high level of automation and tech data management. Improving factory productivity, shortening inventory turnover period, establishing strategic partnership with suppliers, streamlining logistics and distribution, and intensifying support to licensees. Having all this would help to promote our business development and strengthen our operational efficiency. We have started our multi-brand strategy since May 2019.
With a different product portfolio and brand image, we should cater different customer needs and expand our customer portfolio. During the period under review, we have opened three new [audio distortion] and Goldstyle independent shops in Mainland, and we have raised our target to open 10 new [audio distortion] and 20 Goldstyle shops in full year. Meanwhile, we will continue to build the brand awareness through various means, especially social media platforms such as Xiaohongshu, Douyin, and WeChat, as well as hosting interactive roadshows. To date, including the independent shop brands, [audio distortion] and Goldstyle, we have reached a milestone of having 2,000 shops worldwide. With the focus of Mainland market expansion in mind, we will continue to seize opportunities to enlarge our market coverage in Mainland and target to add net at least 200 shops in full year. Expansion will be mainly in lower tier cities via licensing model.
We will also continue to further develop our e-commerce business and target to increase its revenue by 20%. Our CapEx budget for FY 2020 is increased to HKD 400 million, in which 300 million will be used for acquisition of offices and showrooms in Mainland. The last 45 days in first half of FY 2020, our e-commerce revenue increased by 16.1%, but actually it's more than [audio distortion] in RMB. The revenue accounted for [31.3%] of the group's retail revenue in Mainland, with a gradual growth in ASP to RMB 1,300. What we see a gradual improvement in unit price mix. We currently have certain platforms, including Tmall.com, JD.com, and Douyin.com. We look to top the initiatives to offer video chat broadcast, customer support, and quality assurance certificates to platforms to enhance the customer experience and consumer confidence.
We will continue to promote sales of affordable luxury jewelry products to expand our footprints in the younger consumer market. The group also continues to capture the rapid growth of online marketing by various creative manners. Our company and the official partners of Tencent's online mobile game, King Pro League. To honor champion reign, we created a champions medal for first-ever Honor of Kings 2019 World Champion Cup in the period under review. We may use trending social media platforms, including RED, Douyin, and online fashion assistance to increase our brand exposure and expand our footprints in the young consumer market. For the anniversary promotions this year, apart from establishing the 91 Golden Fantasyl and pop-up store, where participants played gold-digging games and met KOLs at booth.
We also held the on-stream Bombo Challenge on RED, which recorded a total of over 11 million clicks rate, which once again raised interest brand awareness among young consumers. To conclude, with the continued uncertainty on the macroeconomics environment arising from the U.S.-China trade war and the negative impact from social incidents in Hong Kong, the group is expected to double-digit drop in terms of annual revenue drop between this financial year. However, we are still optimistic in the mid to long-term prospect of luxury market in Mainland. We are relying on the solid growth potential of the middle class population. This is the end of my presentation, and thank you for listening.
Thank you, Kathy. Moderator, can you please open the floor for questions now?
Of course. Ladies and gentlemen, if you have any questions for your speaker today, please press zero, one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press zero followed by two. Again, that's zero, one on your telephone keypad now. Your first question is from Julie, who's from BI. Your line is now open. Please go ahead.
Hi.
Hi.
Can I ask you questions? The first is.
Yeah, sure.
In this first half, I noticed that the SSG maintenance records double-digit decrease. Meanwhile, for our competitor, for example, [Chow Tai Fook], actually recorded a mild increase in SSG. Does this mean that we are losing market share to other competitors? This is the first question. The second question is for the situation in Hong Kong. Are we planning in the following 12 months to close some stores down in Hong Kong? Or is the rental negotiation going on? If it is, how much of the future decrease in our overall rental in Hong Kong would be? This is the second question. The third question is, what is our hedge ratio on our gold inventory for now, and what is the fair value gain or loss on that gold loan?
Maybe I talk about the Hong Kong shop situation first. Actually, we plan to close some shops in the areas that would be seriously affected by the [audio distortion]. Of course, it would mainly depend on whether the landlord would be willing to reduce the rental in a substantial manner so that we would not make loss on those shops. Basically, we expect there may be a few shop closures in those areas. But at the same time, we are actively seeking for opportunities in Macau markets to open maybe a few shops more. Altogether, we still expect the overall market to have a net addition of three shops for the full year. For the hedging ratio, actually, we have maintained around [20%] hedging ratio for the base inventory for many years already. Now we did not actually change that policy frequently.
Actually, it has been there for many years. For operation side, actually, because we have got daily replenishment system, so that it is actually naturally hedged in the operation side so that no hedging is necessary for the operation. That is why we just hedge the base inventory and the ratio was there. For this year, actually, the holding [audio distortion] altogether. Our practice, simple sales performance against our competitors. Sometimes we perform better, sometimes we perform better. Basically, we are working very hard on the change of product strategy by shifting to selling more low-value, fixed price gold products recently and 18 karat gold products. Basically, I think we have been very successful in the launching of the [inaudible] category, so that they perform very well in this gold area.
We try to do more on the gold side with the offering of fixed price gold products and 18 karat gold products. In the recent year, the diamond market has been quite bad so that the diamond sales also decrease quite a lot. Even though we got very good sales performance for the fixed price gold products and the 18 karat gold products, it is not enough to fully offset the impact of the drop in the diamond sales. That is the difference in the kind of a product or strategy, I think. In the long run, just good to know that we actually focus on the middle class customers. We try to offer more good value for money types of products that we stylish design to attract our customers with all [four kinds] of batches for daily wear patterns.
We have adopted multi-branch strategy this year so that hopefully these new brands will help to contribute to growth in future.
Thanks, Kathy.
Welcome.
Thank you, Julie. There are currently no more questions in queue. As a reminder, if you have any questions for your speaker today, please press zero, one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press zero followed by two. Again, press zero, one on your telephone keypad now. Your next question is from Mavis from DBS. Your line is now open. Please go ahead.
Hi, [inaudible ].
Hi.
[audio distortion]
Pardon the interruption. There is a lot of feedback coming through.
All right.
Hello? Hello?
Hi. I think it's good now.
I think it seems to be okay now. Hello?
Thank you. I just have to check with you in terms of the same store sales performance and operating margin trend for Hong Kong alone. [audio distortion]
Hello?
Pardon the interruption. This is the operator. May I just double-check to our speakers, have two lines dialed into one room?
Okay. We can continue. Sorry.
All right, great. Yes. I will just check on same store sales growth and operating margin trend for Hong Kong alone, and also for Macau alone. Could we split that up for us? Thank you. Secondly, how is performance in terms of the latest months, October, November, and in terms of regions and products? Thirdly, what about the overall outlook for the next financial year, FY 2021, in terms of the top line and also margins? Thank you.
For Hong Kong, Macau markets, actually, of course, with the recent developments, Hong Kong's margin must be worse than Macau to a bigger extent. The positive news is that actually, even though we talk about very bad performance in August, actually, the Hong Kong retail market is still profitable altogether as a whole. We are just earning less profits than before. For this financial year, originally, we expect kind of a flattish performance. With the drop in the first half, the substantial drop in first half, even though when we talk about October and the last three weeks of November, I mean, the first three weeks of November. October, we saw actually kind of improvement, progressive improvement in this period of time, bit by bit.
Apart from the Hong Kong market, actually both Mainland and Macau market improved. For Macau market, actually we saw double-digit growth in the first three weeks of November, mainly because of the good sales performance of gold products, because of the lowered gold price, actually. For Mainland market, it is kind of a flattish situation in November. Actually, for licensed shops, for year to date, August was the only month that they have negative [same-store sales growth] for January to July. For all other months, it is kind of a positive figure. That is why basically, for this financial year, we are expecting kind of a double-digit drop for revenue and profits for this year.
For next financial year, it is hard to tell at the moment because we do not really know how the U.S.-China trade war and the social instances in Hong Kong would look like in the next year.
Can you tell us a bit more about the same-store sales growth for Hong Kong? Is it possible to quantify a little bit for Hong Kong alone? Thank you.
Actually, for Hong Kong, I think we talked about maybe in August. Since August, we talked about something like 40% something or 50% something. In the recent one, like October, it is maybe 40% something, and up to now it is still 40% something, kind of a drop.
Okay. Thank you so much.
You are welcome.
Thank you, Mavis. There are currently no more questions in queue. Again, if you would like to ask a question, please press zero, one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press zero followed by two. Again, press zero, one on your telephone keypad now. Once again, that is zero, one to ask a question. Your next question is from Shirley, who is from Value Partners. Your line is now open. Please go ahead.
Hey, hello, Kathy. Can you hear me?
Yes.
Yes. Actually, I would like to understand more about the GP margin side. From what the GP margin has increased by 6%, around 6% from the last on a year-over-year basis. Actually, is it all of them coming from the rising of gold price? Is there any help from the product mix or?
Actually, high gold price would be the major contributor to that. Because of the high gold price, sales of gold dropped a lot by more than 30%. That is why the gem-set sales mix improved as well, because gem-set has a high gross margin than gold. That is why altogether it would contribute to the overall increase in gross margin too.
Okay. But the high gold price actually contribute most of the.
Yes
The rising of the GP margin?
Yes.
Because you have mentioned about in August, with the 40% drop in same store sales, actually, we are still making money. If we think about, if we eventually use up the lower gold price, and also the same store sales remain the same, what would the given margin look like in Hong Kong?
In fact, we talked about the operation side. We always use the daily replenishment system. Even though you see kind of a volatility in the gross margin of gold sales in the first half, normally if we extend it to a full year, we would go back to kind of a normal gross margin of gold no matter how the gold prices fluctuate. Basically, for the full year, you may see a kind of a 15% gross margin for the gold sales again.
Okay. I understand. My question is more about the August number that you mentioned. Does it include the benefit from the GP margin expansion?
For the GP, because we are hedging, the P&L is actually below the GP, so the high gold price will benefit the profits in the gold sales, I mean, in the GP.
Yes. Also because of the higher GP margin in August, in Hong Kong, with 40% of same store sales drop actually is making money. What I mentioned is about if we exclude the effect from the high gold price, does it mean that actually we will be losing money?
In fact, for others, actually, when we affect the breakeven position for Hong Kong market, actually, if we have a kind of a sales drop by around maybe 50%, we will reach the breakeven point. Basically, the kind of sales drop in August is actually something like this situation. Typically, if there is no gold price benefits for that, maybe we will talk about the really breakeven position for August.
Okay. I see. Also going forward, like for any cost-cutting plan, also other from the rental reduction in Hong Kong side?
We talk about rental reduction, the short-term discount on that, and then we've got some of frozen staff number, kind of a frozen headcount, and that is being reduced naturally. If they resign, we do not really replace. Then we are asking staff to take their annual leave. But we do not have any plan of a redundancy yet, and we do not have any plan to asking people to take no pay leave yet. Then we most likely would freeze our salary increments at [N1]. Basically, then we may look for kind of a reducing marketing expenditure in future, not now because some commits already to keep it around the same expense to revenue as usual. Basically, we are doing all these kinds of things.
Okay. For the closure of Hong Kong store, when you talk about the impact from the protests, you are talking about most of the tourist area like [Tsim Sha Tsui] or?
Yes.
Or Causeway Bay?
The most affected area would be like Causeway Bay, Tsim Sha Tsui, and Mong Kok. These three will be the most serious areas.
Okay. Thank you. That is my question.
You are welcome.
Thanks, Kathy.
Thank you. There are currently no questions in queue. Again, if you would like to ask a question, please press zero, one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press zero followed by two. Again, press zero, one on your telephone keypad now. Once again, press zero, one on your telephone keypad if you have any questions for your speaker today.
Operator, I guess there's no questions lining up. I think we can probably the end of the call.
Sure. If there are no more questions in queue, our speaker for today, do you have any closing remarks that you'd like to do before we close the call?
No. No more?
Not really.
Great. Thank you. Ladies and gentlemen, this concludes our conference call for today. Thank you all for your participation. You may all now disconnect.