Earnings Call: H1 2019

Aug 29, 2019

Good afternoon, ladies and gentlemen, welcome to join the global investor conference call of TravelSky Technology Limited for the 2019 interim result announcement today. [Foreign language] The attending management today are Executive Director and General Manager, Mr. Shao Ying Hong. Secretary to the Board, Mr. Yu Xiaochun. Vice Director of Finance Department, Mr. Wang Gang. Director of Board Secretary Office, Ms. Li Juan. Investor Relation Manager, Ms. Zeng Yiwei. [Foreign language] Office from Finance Department and Board of Secretary Office. [Foreign language] On our conference call today, Mr. Yu Xiaochun, Secretary of the Board, will walk through the 2019 interim result performance and business status of the company. All participants will be on a listen-only mode during the management presentation. Then we will have a Q&A session after that. [Foreign language] Now I like to invite Mr. Yu Xiaochun to start the presentation, please. 大家好，我是公司董事会秘书，欢迎各位参加今天下午的会议。那么昨天公司已经公布了中期业绩，上半年收入增长9.2%，继续保持了稳步增长的态势。那么利润的增速应该说不及收入，比收入的增速略低一些，这说明我们在成本方面还是面临一定的压力的。那么当然，今年上半年公司总体的情况来看还是不错的，应该说营业的利润率保持了40%的高位，现金也是充裕的，说明我们整体的运营状态是良好的。那么接下来我还是把更多的时间留给大家，请公关公司协助大家接入提问。谢谢。 Good afternoon. Thank you for attending and joining our conference call today. We announced our 2019 interim results yesterday. In the first half of the year, our revenue grew 9.2%. This shows that we achieved stable growth in our revenue. For profit growth, the growth rate is smaller than that of revenue growth. This shows that we are under some cost pressure. Overall speaking, in the first half of the year, we did quite well. For our operating profit margin, we are at 40%. We have adequate cash in hand, and our overall operating condition was good. Now, as usual, I would prefer leaving more time for questions and answers. Now we can start Q&A. 谢谢于小春先生，问答时段现在开始。 Thank you, Mr. Yu Xiaochun. We now move to the Q&A session. 如果你需要提问，请在电话键盘上按01，当我们读出你的名字后，可以开始发问。如果你要取消，请按02。 If you have a question, please press 01 on your telephone keypad now and you will enter a queue. After you are announced, please ask your question. If you want to cancel your question, please press 02. Once again, 01 for questions. Our first question is Alex So from CLSA. [Foreign language] 你好，管理层好，请问听到吗？可以听到。你好，我是来自中信里昂证券的Alex，请教一下管理层，关于收入方面，我们看到系统集成服务今年上半年按年有一个比较强的增长，然后数据网络服务这一次我们把它分别拆出来了，所以看得比较清楚。但是这一块就看到按年是一个稍微有一个1.5%的一个收入的下跌，能不能给我们多一些介绍这两块具体的情况，然后我们下半年再怎么看。然后第二块是关于我们的支出的。我看到今年上半年我们的R&D是涨了很多支出。我想问一下这个主要原因是在哪里？我们把研发主要投入在哪一些产品？还有哪一些服务？这个在我们的成本里面主要是反映在哪一块？是不是人工成本？然后我也看到我们中期业绩的介绍，也有讲到一些关于云产品方面的一些发展，管理层能不能给我们多一些介绍，关于我们的云产品现在发展情况是怎么样？什么时候能够产生盈利？谢谢。 First of all, I would like to ask a question about your revenue. Your revenue for system integration business achieved strong growth. We can also see quite clearly your revenue for data network service because it is being stated separately. For data network service, there is a year-on-year decline of 1.5%. Can you explain more about these two businesses? In the second half of the year, what do you think will be the situation regarding these two businesses? The second question is about your expenses. In the first half of the year, there is quite a strong increase, a big increase in your R&D expenses. What are the reasons for that? In which products and services did you invest your R&D expenses? Is this increase in the R&D expenses reflected in the staff cost item or in which items? There is also some introduction in your results announcement about cloud products development. Can you elaborate more on that? When are you going to see some contribution from cloud products development to your revenue and profits? 我先回答一下您的第一个问题，就是今年关于收入部分，系统集成收入的话有一定的增幅，这也与我们今年整体上系统集成业务在推进上面相对来讲的话有一定的加快。所以我们在有些收入能达到收入确认时点的项目有所增多，导致我们的收入有一定的增幅。您也提到了，今年的话，我们把数据网络这部分收入单独从原来的数据网络及其他中分离出来，也是为了方便我们投资人能够更好地来理解我们的收入构成。那么在这部分的话，它这个降幅主要是因为我们在同比，在18年的上半年，我们还有一家西南凯亚这家公司是纳入合并范围，但是在今年19年的时候，它已经不在股份的公司的合并范围内，由此导致了我们这部分收入同比有所减少。如果剔除了西南凯亚收入的影响因素的话，我们这部分收入是有一个接近5%的涨幅。这样就是我们数据服务收入变化的一个原因。然后第二个问题里—— Let me answer your first question first regarding revenue. For system integration revenue, we achieved an increase. This is because this year we have accelerated our implementation of system integration projects. There are more projects that reach the point of revenue recognition. That is the reason why there is an increase. For data network service, as you said, we are separately stating the revenue for data network services. This is to facilitate easier analysis by the investors. In the first half of 2018, because there was the inclusion and consolidation of another company, Aviation Cares of Southwest, but then this company was no longer in the accounts in 2019. That's why on a year-on-year basis, there is a drop in revenue. But if we exclude this item, revenue actually increased 5%. 那第二个问题里，关于研发部分的话，我先回答一下，研发我们在增长上成本体现，主要是体现在人工成本和技术支持这两部分。因为研发主要是我们的人员，我们自有的研发人员的这种工资薪金类的支出，同时还有一些我们需要外部的一些技术支持，就通过引用外部的一些团队来进行研究开发工作，所以这个主要是会体现在这两项成本上。 For R&D expenses, they are mainly reflected in two items: one staff cost and the other is technical support. Internally, we have our own R&D people doing the work. Besides, we also need external technical support, so that is being done by external technical teams. R&D expenses are mainly reflected in these two items. 关于你问到的云产品的发展方面，主要我们的考虑第一步还是开发私有云，那么用于自身的一些应用，主要是为了考虑方便我们自身的研发，降低我们的运营成本，出于这方面的一个考虑。当然这项技术，因为我们是做IT平台的，那么未来这项技术发展成熟之后，满足我们自身的需求之后，那么我们也会适时地向市场推出我们自己的云服务。那是未来第二步，会考虑向这个市场进一步对外的提供云服务。那么第一步主要还是自身的。 Concerning the development of our cloud products, step one is a private cloud, which is mainly for our own use and application. It will cover R&D, and it is also aimed at lowering operating costs. We are an IT platform ourselves, so after this private cloud operation has become mature, we will consider providing this cloud service to the external market as well. That is step two. Step one will be our own operation and utilization of the private cloud. 好的，谢谢管理层的介绍。那这个R&D成本我们未来该怎么看呢？ How should we interpret or how should we look at your R&D expenses for the future? 从目前来看，因为这是一个中期的半年报告，所以它的增长方面，我们的研发费用投入有些是伴随项目来产生，所以可能在半年有些时间进度的推进，导致了可能大家看到同比来讲，两个半年度相比差异大了一些。这部分从整体上，我们管理层部分一直是给投资人来介绍，我们会进一步加大研发投入，大家从去年的报表中也可以看到这方面的体现。从目前来看，这部分我们应该还是一个有加大投入的趋势的。 Regarding our R&D expenses, because right now in front of you is an interim report of our half yearly results, and some R&D expenses are actually related to specific individual projects. That is why there may be a big difference on a year-on-year basis if you compare the two half year periods. As mentioned, we will continue to increase investment in R&D, and this can also be shown in the financial statements last year. You can see the trend of an increase in R&D expenses. 好的，谢谢管理层。 Thank you management. Next question, John McCurry. 下一题，John McCurry。好，请问管理层可以听到吗？可以听到，谢谢。你好，很感谢接听我的电话。我这边有两个问题，第一个问题是人工成本，刚才可能跟研发也有点关系，我想问一下，人工成本其实同比上升有18%，如果我们看绝对数的话，上升有4个亿。但同时我们员工人数实际上是同比也下降了不少，有12%，环比下降了也有7%左右。所以我想问一下管理层，可不可以帮我们拆分一下，这4个亿的同比的增量里面，有多少是因为我们研发那一端投入导致的，还有多少是因为我们提高了人工薪酬和福利导致的？然后想问一下未来的预期，下半年和明年是什么样的？这是我的第一个问题。我的第二个问题是关于技术支持和维护费用下降了11%，同比其实做得挺好的，想问一下这个原因是什么？还有就是未来我们怎么看这个成本的趋势？谢谢。 My first question is about staff cost. On a year-on-year basis, staff cost went up 18%. The absolute amount was an increase of CNY 400 million. However, if you look at the number of employees, it came down on a year-on-year basis by 12%. And if you compare with the previous half year period, it is down 7%. So I would like to know if you look at the absolute amount of CNY 400 million increase in staff cost, how much came from an increase in R&D investment? How much was caused by an increase in salaries and fringe benefits? What will be the trend in the coming period? For example, in the second half of the year and next year, what do you think staff cost will become? The second question is, you did quite well in lowering the expenses in relation to system and data by 11%. What will actually be the cost going forward for this part? 不好意思，我调整一个数字，就是那个人工成本绝对数增量是有大概1.1个亿。不好意思。 Let me correct. The increase in staff cost amounted to CNY 110 million. 对，您这也是更正了一下，是吧？第一，我们人工成本的话是绝对值上增加了大概是1.1亿。在这里边主要部分是两部分，一部分是我们人员的工资，在今年根据市场的同行业情况，我们工资发放的结构做了一定的调整，也就是说原来可能是在下半年发放的工资，提前在上半年进行了发放，这种的话导致了我们工资的同比数字会产生一个变化。 Right. First of all, in relation to the increase in staff cost, the amount of increase was CNY 110 million. In fact, if you look at our staff salaries, we have made adjustments in accordance with the market trend and also our peers. We have made adjustments to the structure. Those salaries or those expenses that are supposed to be incurred in the second half of the year were moved forward to the first half of the year. That is why there is change in this staff cost. 然后同时同比来讲，因为我们的社保的缴费基数年度同比有增长，也导致了我们社保的缴费数字产生了增加，这也是人工成本增加的一个原因。 Besides, on a year-on-year basis, there is an increase in the base figure, the denominator in relation to social security. In terms of social security payments, this amount increased. As a result, that has also led to increase in staff costs. 然后第二个问题就是技术支持与维护，可能同比数字略有下降，这部分主要是结合我们在业务的研发进度安排上，所以它的支出是伴随业务的需求来进行的，所以可能会每年度会有所不同。 You are right in saying that there is a decline in our technical support and maintenance expenses. Well, this is related to the progress in our R&D work, and it is to tie in with business needs. That is the reason why there is variation in different years. 就想问一下，那如果现在有没有对下半年或明年的这个各项成本的一个增长或下降的一个预期，有没有一个可能见度呢？ Then for the second half of the year and next year, do you have any estimates of this expense? Do you have an estimate in terms of whether it will go up or decrease and so on? 从目前阶段我们能够看到的一部分，因为公司管理层整体上是会进一步加大对R&D的投入，那么这部分投入可能会体现在我们的人工成本和技术支持上。这里边的话，从您讲到趋势的话，我们目前认为还是有一个稳定上升的趋势，当然这个也是还是要结合一些实际研发的具体的进度需求来确定。 We are going to increase our R&D investment overall speaking. As a result, this will be reflected in the staff costs and technical support expenses. The trend is that there will be a steady increase. However, it all depends on the actual R&D expense increment, because that will have to also depend on our actual business needs. 好的，谢谢。谢谢管理层的答复。 Thank you very much. The next question is Calvin Lau, Daiwa. [Foreign language] 谢谢万里长，我是大和的刘伟健。也谢谢肖总、于总，还有万里长给我们时间回答一下我们的question。那我想问一下有几个问题，第一个就是关于你们的租赁成本，就是今年上半年是0，那我想问一下，以后这个成本就已经会没有了，搬进新园区就没有。因为据我了解，你们应该还是有在其他城市里面有些办公楼，或是你们原来的计划可能会保留一些办公楼，还要租赁的，所以我想问一下现在的计划是怎么样？还有在未来，原来你们搬去新园区以后，你们原来的办公楼是不是有机会去租出去？谢谢。先问这个问题。 My first question is about your leasing cost. In the first half of the year, leasing cost was zero. In the future, are we going to see no or zero leasing cost? I know that you have office buildings in other cities, and you had planned to preserve or retain these office buildings. What is your future plan? After relocating to the new park area, are you going to let out the existing office building? What is your plan? 第一个问题关于租赁成本是这样子，因为在今年19年度我们试用了IFRS 16号准则，所以对租赁部分在会计处理上发生了变化，就这部分租赁以后在这里边不会在经营性租赁里列支，这一部分成本会体现在我们的折旧与摊销里，它属于一部分所有权资产的折旧，同时还会有一部分的话，权益费用。那么这里边的话，这是根据IFRS 16号准则规定来做的。 First of all, concerning leasing expenses, leasing cost in 2019, we adopted IFRS 16 standard. As a result, there was a change in the accounting arrangement for our leasing costs or leasing expenses. It is no longer presented as an operating leasing expense. Rather, it is now under depreciation and amortization, and there is also some attributable expenses as well. 所以您所关注的问题，就是这个租赁这个事情还是存在的，只不过是它体现在会计科目发生了变化。 The leasing will be such that the market is still there. It's just a change in the accounting standard. 那你们现在空出来的一些办公楼的计划有没有？ What is your plan about the vacated office buildings? 从目前来讲，我们是有空出的办公楼会考虑对外出租，这项工作正在进行过程中。 Right now, our intention is that we will let out the vacated office buildings, and this work is now underway. 还有一个问题想请教一下，关于你们的，是不是原来因为IFRS 16，所以折旧就提升了不少，那下半年我们是不是看到应该相对稳定，大概也是差不多4个亿这样子一个金额在下半年体现出来。 Is it because you adopted IFRS 16, Number 16 standard, so as a result, depreciation increased quite a lot, and in the second half of the year it will become stable at around CNY 400 million. Is that the case? 从目前情况来看，应该您这种判断基本上是差不多的。 Based on the current situation, your judgment is quite right. 谢谢，我没有第二个问题了。 Thank you. I have no other question. The next question is Ming Liu Chou. [Foreign language] 你好，我想问一下两个问题。第一个，我看在我们的系统处理量好像跟去年的同比增速是下滑不少，因为去年2018年上半年，我记得国内的话至少还有10%出头的，那今年就只有7%多了。那就想问一下各位领导怎么看待这个趋势？然后第二个就是国外外航的处理量反而还是有一个比较稳定的增速的提振。所以想问一下是不是说意味着我们在跟外航和进入其他外部市场有一个比较好的进展？我先问一下这个，后面再继续。 My first question is about your systems growth rate. If you compare this first half and the first half of 2018, the growth rate slows down. In first half 2018, growth rate was 10%. In this first half, around 7%. What will be the trend going forward? If you look at the volume in relation to foreign airlines, it is quite stable in terms of the processing volume. I would like to know what is your plan and what will be the progress in relation to business with foreign airlines and the external markets. 关于第一个问题，就是旅客量的增长。那么今年受全球经济下行，包括油价的波动，包括中美贸易争端的一些升温，受到这些因素的影响，旅客量确实出现了下降。因为去年同期的增长是11.4%，那么今年7.8%应该说还是有明显的这种下降了。那我们年初的时候，民航局预测旅客量的增速是11%，所以要全年达到19年11%的增速应该说还是非常困难的。 Your first question is about the passenger volume. It had come down because this year there was a downward pressure in the economy, and there is also volatility in oil price and also the China-U.S. trade war. Last year in the first half, passenger volume increased 11.4%. In the first half this year, it only went up 7.8%. At the beginning of the year, the Civil Aviation Administration of China estimated a growth in passenger volume of 11% for the whole year 2019. We think now that this 11% growth will be quite difficult to achieve. 虽然短期旅客量增长还是有一定压力，但是我们还可以看出其中的一些积极因素。就刚才你提到的，就是今年上半年，无论是中国大陆航空公司的国际段，还是外航的旅客量，都有比较大幅的增长。所以我们预计，在出境游这一部分应该还会保持逆势的增长的势头。 However, even though there is pressure in the short run, as you yourself stated just now, there are several positive factors. For example, in China, if you look at the first half this year, if you look at the Chinese Airlines international flights and also the foreign airlines, the passenger volume did increase. We believe that for outbound travel, there will still be growth. 当然对于中长期旅客量的增长趋势，我们还是很乐观的。随着中国经济的发展，人均可支配收入的增加，所以对旅客量中长期的增长，我们还是很乐观的。 For the mid to long run, we are still optimistic about the growth in passenger volume. This is because of the continuous development of the Chinese economy and also the increase in people's disposable income. 好了，非常感谢各位领导。然后还有个问题，因为我们看到今年我们这次的材料里面是有披露半年度的系统集成项目，就包括在建项目和机场个数。能不能详细讲一下这90个在建项目的个数是大概什么时候、多久能够把它们完成？也就是说我们把它们一一确认成收入的脚步大概是一个怎么样的，以及它们的体量都在怎么样的一个情况，这样子我们对系统集成的收入可能会有一个比较好的理解。 For this first half of the year, concerning system integration, you have disclosed the number of projects under construction. There are actually 90 projects under construction. When can these projects be completed, and when will revenue be recognized for these projects? If we have the information, then we can better understand and analyze the system integration revenue. 这个披露的90个在建项目，目前都是上半年产生收入的。至于这些项目，它在执行的过程中什么时间完成，或者它的跨度是什么样的，这完全取决于项目的规模、它开始的时间，以及它包含的这些内容。所以等年终的时候，我们还会披露新的数据，那么到时候数据的变化会反映这些情况。 For these 90 projects under construction, they generated income in the first half of the year. As regards when can they be completed, this depends on the scale of the project, the commencement date of the project, as well as the actual details of the project. At the end of the year, we will disclose and we will provide some new data, and you can see the change and pattern from these new data. 好的，我就这些问题，然后非常感谢这位领导。 Thank you. That is all from me. Next question is Junyi Yuan, Morgan Stanley. Junyi Yuan, Morgan Stanley. 就是之前提过的，一个是关于国外航空的订座量的大幅提升，公司说是由于出境游的影响。但是我们看以往，其实你看国内航司的国际线其实也是增长得很快，但是国外航司的增速只有个位数。就感觉今年是一个比较特殊的情况。想问一下，除了出境游之外，公司这方面是做了什么样的努力吗？这是第一个问题。第二个问题是关于清算结算业务的。就是上半年增长了3.5%这样，然后因为我记得是去年下半年的时候，因为有一个合同的更新，所以增速比较慢。那是这样说是今年的下半年的话，这个增速是会企稳吗？就是这两个问题。谢谢。 First question is concerning the foreign airlines. There is quite a bigger increase in relation to the volume of passengers. You said that this is because of an increase in outbound travel. If you look at the international flights of the Chinese Airlines, the volume had also gone up. For the foreign airlines, they actually achieved a single-digit growth rate. I would like to know more in greater detail. Is it really mainly because of the increase in outbound travel, or did the company do anything to boost the growth? My second question is about your clearance and settlement services. In the first half, there is an increase of 3.5%, but in the second half of last year, growth rate slowed down because of updating of the contract. What about the second half of this year? Will the growth rate recover from last year comparing with the second half of last year? 关于第一个问题，就是外航增速的这个问题。那么我们看到今年上半年我们外航增速是9.6%。其中一个原因就是去年同期外航的增速是1.6%，所以去年的基数相对比较低，这是一个原因。那么第二个原因呢，sorry，我们注意到外航在近期，今年上半年也在运力方面做出一些调整，尤其是远程航线、国际航线有所增加，这也是外航的旅客量增加的一个原因。那么关于促销方面，当然我们是在不断地针对外航改善我们的产品服务，包括我们在促销的渠道上也有一些投入。我想它这个增加是一个综合性的作用显现。 Let me answer your first question regarding the growth of foreign airlines. In the first half of this year, the growth was 9.6%. In the first half of last year, the growth was 1.6%. As a result, last year, the base figure, the denominator was smaller. In the first half 2019, this year, foreign airlines have made adjustments to their transport capacity. They have increased the number of long-haul routes and international routes. As a result, passenger volume went up. As regards sales promotion, we have been doing sales promotion work, we have improved our products and services, and we have invested more in the channels, in the sales and promotion channel with foreign airlines. I think the growth for foreign airlines is caused by a combination of factors. 关于您提到的结算部分的收入，结算业务由我们的一家全资子公司来运营。在上半年部分，收入同比有一定的增幅，但它的业务主要是受他们与航空公司间的业务处理量的增长有关。在目前是有一个同比的小幅增长，预计全年的话，目前趋势来看有一定的增长。 Regarding our clearance and settlement service income, that is the work done by our wholly owned subsidiary. In the first half of this year, its revenue increased. This is in fact related to the processing volume with airlines. There is an increase in the processing volume, revenue went up. For the whole year, we think that revenue will still be up. Next question, 张继刚，深圳时长龙投资。你好，我想问的问题就是航旅纵横现在给我们带来的亏损每年有多少？还有未来是如何？是重组还是怎样？计划是怎么样？ I want to ask about Umetrip. How much is the loss per year? In the future, what is your plan? Are you going to do restructuring or reorganization? 目前航旅纵横我们主要还是投入，投入的主要部分主要还是人工成本，还包括一些技术开发的一些费用。目前航旅纵横几乎没有太多的收入，所以它应该说还是亏损的。这是第一个方面。关于你说的它的改制的进度，这个确实拖了很长时间了，这个已经是三四年的时间了。据我们了解，潜在的股东有部分在他的股改的协议里，有部分是签署协议了，还剩个别的还在做最后的协商，还在向前推进。但具体的这个时间什么时候落地，确实我们不掌握，我们是相对比较被动的，所以也不可能，也没法给你一个确定的时间。谢谢。 In relation to Umetrip, we are still making investment in terms of staff cost and also technology, technical development expenses. It has not much income really, so it is still at a loss. As regards the progress and status of the restructuring, this has been on for 3 to 4 years already. I know that some potential shareholders had already signed the agreement on the shareholding restructuring. Some other potential shareholders are in the final deliberation stage. As regards when the whole thing can be finalized, we do not really know because we are in a very passive position. I cannot really give you a specific time frame. 好的，谢谢。我另外问一个问题，就是关于我们终止了2011年的股票增值权计划，我们的员工都是在这些云计算、大数据这些很热门的行业，工资竞争、各方面的人才竞争非常激烈，我们有没有新的一些员工激励的方式？ I want to ask a question about the stock option incentive scheme, which was actually started in 2011. I know that many of your employees are working on, for example, cloud technology, cloud system, big data and so on. In these areas, there is intense competition in relation to talent as well as the salaries. Do you have any other plan on staff incentives? 当然终止这个计划呢，主要是监管机构它的一些规定有所变化，所以原有的这个方案就不适用了，所以这是按照一些规则的要求，我们必须要终止。对于你提到的这个激励的问题，应该说我们在激励方面，手段和渠道还是比较多的，方方面面不一概而论。但总体我们在薪酬方面，应该说还是受到一些监管的一些条款的要求，在薪酬方面，还是总体在这个行业里偏低的。未来关于是不是有股权激励，或者说有新的增值权计划，目前我们还没有这样的计划，但是我们可以朝这个方向，按照国资委的政策的一些要求，尽可能地利用好这些政策的优势，积极地去研究。但目前我们没有一些具体的股权激励的计划。 In relation to the old stock option incentive plan, it was terminated because the regulator has changed some of the rules. As a result, the original scheme can no longer be applied. As regards offering staff incentives, there are many different tools and channels to do that. If you look at our salary, we are being regulated, so our salary is in fact on the lower side in the market. Whether or not we have some other stock option or incentive schemes, right now we do not have any definite plan yet, but we will go according to the set policies and take advantage of the room in the policies to think of any particular way to incentivize the staff. 好的。另外我还有一个问题，就是问一下我们的发展方向。因为我去年好像也提过一些，在打包收费之外，还有一些新的跟航空公司收费项目什么的。然后第二个就是大兴机场那种模式，我们未来会不会大幅地扩展？通过投资到机场这些来做。就想听肖总说一下关于我们未来这个方向，因为我们这个业务非常稳定，这么多年来我们有没有一些新的东西，怎么去提高一下公司的发展速度。 I want to know about your future development direction. Last year, there were some points mentioned in relation to some fee items with airlines. Besides, do you have any plan to make more investment in airports? Right now your business is already very stable. I want to know whether there are anything new to boost your company's growth. 肖总在其他的会议上，我先代肖总来试图解释一下。刚才你提到的就是有没有未来的一些发展方向。总体来讲，我们还是关注于大中国地区的市场，在航空旅游这个方向上。应该说我们从历史发展到现在，总体中航信它的业务模式、商业模式应该说还是非常稳固的。当然大中国地区又是整个全球航空市场增长最快的，所以我们会随着整个这个地区的市场的增长，包括刚才提到的消费升级，旅客量的不断的增长，包括出境游的增长，不断地扩大收入的规模。 Mr. Xiao is engaged in another meeting, so I will answer this question on his behalf. All along, we have been focusing in the Greater China Region and markets, we will continue to focus on the aviation and traveling sector of this market. From history till now, from the earliest historical point till now, our business model has been very stable. For the Greater China Region, it is actually the fastest growing region in the world in terms of aviation and traveling. There are some positive trends, for example, upgrading of consumption and increase in passenger volume, increase in outbound travel and so on. These are some positive factors that we will capitalize on to expand our revenue source. 关于你说的第二个问题，就是大兴机场的模式问题。因为这是我们第一次带资建设，对于我们也是全新的，所以我们对这样一种模式也是在进行不断的评估和观察。至于说这种模式未来是不是可以推广到其他机场，目前还在评估吧。总的态度应该说我们既不积极，同时也不拒绝，大概这是我们对这种模式的一个想法。 You also asked about our participation in the construction of the Daxing Airport. This is the first time that we are doing this kind of work. It is a brand new model for us. We are assessing this model right now. In the future, are we going to extend this approach to other airports? We are still doing assessment. I have to say that I will not rule out this option, but at the same time, I cannot say that we will definitely go forward with it. 好的，非常感谢。然后我最后两个关于财报的问题。第一个，我看到就是说我们去年不是说有很多的资本开支，但我看到固定资产的增长是非常小，不知道有没有进行这些投资，未来我们的资本开支方面是一个什么样的情况？第二个就是南航好像说不是我们的关联公司了，那现在我们应收关联公司的账款其实还是增加得非常快。这里面是不是除了南航还有很多别的关联公司吗？就这两个关于财务的问题，谢谢。 I have two questions relating to your financial data. Last year, we heard that there would be a big CapEx. However, if you look at your fixed asset growth, it was just a small amount. I want to know whether you have made those investments, and what is your future CapEx plan? Now concerning the associated connected companies, there is some increase in the receivables from associated companies. Apart from China Southern Airlines, what other associated or connected companies are there? 对您说的第一问题，关于资本开支部分，因为我们每年的资本开支计划也会对外披露。但是资本开支的实际执行情况，我们也会向投资人有一个介绍。今年上半年，实际上我们资本开支在3.7亿左右。您提到的可能是说，是不是没有完全体现在我们的资产方面，因为在资产这个项目的话，资产方向上，因为我们有资产有增，它也有一些自然的提足折旧之后又减，所以您看到的数字是一个多种因素增减之后的一个结果。是，因为是二十几个亿，提到的是有二十几个亿的开支。好像是说你有几十个亿的开支，可能是不是最后就没有执行那么多，大概是这个意思。是的。 Every year we do disclose our CapEx plan and also we will tell investors the actual implementation of the CapEx plan. In the first half of this year, CapEx was CNY 317 million. In fact, if you look at the assets, you may think that this CapEx amount is not fully reflected in the assets. In fact, in our assets, there will be both increase and decrease, because there is depreciation, which will reduce the assets number. That's why the assets represents actually the net effect after all the increases and decreases. Last year the CapEx size was 2 odd billion, but then this year it is a lot smaller. Is it true that some items in your CapEx plan have not been implemented yet? 然后您提到第二个问题是这样的，在会计核算上的关联方的概念，可能与我们在股权上的关联方是两种不同的口径。我先给您把财务方面的做介绍，之后我们董秘人员会把其他的口径的差异给您做个介绍，这样好吗？好的，就未来的资本开支目标。谢谢。 What is your future CapEx target? 现在我们公布的本年度的未来的资本开支的计划是23亿，但这个会结合我们的实际的业务进展，在这里边在实际执行上边，数字会有所差异。 Our CapEx plan is CNY 2.3 billion. However, it all depends on the actual implementation of our business plans, so the final figure may be different. 然后这下面还是把刚才问题说完，南航在我们这个财务报表里边，我们还是属于关联企业，所以它的应收账款还是会体现在应收关联方。 For China Southern Airlines, it is still our associated company, so it is reflected in the receivables from connected or associated parties. 好的，刚才这个问题能不能追问一下，跟航空公司除了打包收费之外，现在还有没有新的收费项目？未来还会有吗？ Concerning the fees and charges, the packaged fees and charges with airlines. Apart from that, are there other kinds of fees? In the future, will there be new fee items with airlines? 跟航空公司除了打包收费以外，打包收费主要是航班管理系统、分销系统、离港系统，这几个系统统一打包。航空公司在IT方面需求应该说是非常多样化的。所以除了打包收费以外，我们还是应航空公司的一些需求，也为航空公司开发一些其他方面的应用产品。有一些收入我们是记在我们的其他收入项目里。 Concerning the packaged fees with airlines. The packaged fee includes three items: the marketing and distribution system, the IT system, and also the departure control system services. Because different airlines also have many other different demands, so in accordance with their demands, we will also design other applicable products and services for the airlines, and those income will be reflected under other income. 好的，谢谢公司，祝公司发展得更好。谢谢。好，谢谢。 [Foreign language] The next question is Tianyang, They Investment Management. Hi。Hello？ Hi，Yeah。 I just got two questions. Firstly, where do you think your strengths and weaknesses lie in the international market? Secondly, just following up on the receivables, I want to ask more about the trade payables to related parties. These have been increasing steadily. I am just wondering if you can kindly provide some details on what types of transactions, but more importantly, to whom the parties are. Thank you. 第一个问题是关于在国际市场里面，你们的强处和弱点是哪一些？第二个问题就是关于应付账，就是对关联单位的一些应付账，我看到有稳定的上升，这些交易是哪一类？另外是付给谁的呢？关于第一个问题，我们在国际上所提供的产品和服务，在航空产品分销这个方面，大家都是同质化的。应该说不同的GDS企业提供的服务本质上的差别是不大的。那么对于你刚才提到的就是TravelSky它的优势在哪呢？我想有几个方面：第一，我们因为是集多家的航空公司的IT平台，所以我们是有规模效应的。那么由于我们有规模效应，同时我们在价格方面是具有优势的，我们是全球在提供同质化服务的前提之下，我们价格是最便宜的，尤其是如果你知道我们针对中国大陆航空公司的平均单价，应该是明显低于对外航的收费的，所以在这个方面我们应该说是有一定优势。另外呢，OK，可以先翻译一下。 Concerning our strengths and weaknesses in the international market. If you look at the products and service for aviation service and distribution, this is a very homogeneous service. If you look at our strengths, first of all, we have the IT platform of many airlines, so we enjoy economies of scale. We also enjoy a price advantage as a result. If you look at the homogeneous service that we are providing together with many other players in the world, we are the lowest in price. If you look at our pricing for Chinese airlines, comparing it with foreign airlines, our pricing for Chinese airlines is a lot lower. [Foreign language] Next is Eric Cheung, Macquarie Capital. 我还有两个问题，然后再跟进一下。第一个问题就是关于其他成本，我们看我们上半年只有一个亿，跟去年的下半年比的话，去年下半年有三点多个亿，对吧？我想问一下，是不是那种一次性的开销在去年全年已经全部都已发生完了，所以导致我们其他成本就下降很多，然后今年可能下半年、明年也会很正常化。这是我的第一个问题。然后第二个问题就想问一下佣金和推广的费用，因为刚才我们也讲到外航的增速加快，一部分原因是因为我们激励的措施和营销加多了，然后是不是这个6%可以和那个挂钩的？还有往外来看的话，有什么预期这个增速方面的这个成本？谢谢。 My first question is about your other expenses. In the first half of this year, it is CNY 100 million. In the second half of 2018, it was slightly above CNY 300 million. Is it because there are a number of one-off expenses that were already finished last year? So this year and next year, the other expenses, the amounts will be more stable and steady. My next question is about your commission and promotion expenses, which went up 60%. Just now you mentioned that the business with foreign airlines went up. Part of it is because of the sales promotion initiatives that you had carried out. Is it true that for the increase in commission and promotion expenses, it is a result of the increase in business and promotion work with foreign airlines? In the future, what will be this trend? 关于其他营业成本部分降幅的话，因为这里边今年也是航空公司在进一步提高运营效率方面，控制一些成本支出，在这方面的话有一定的成效，这一点也是我们降低的一个因素。 Concerning the decline in other expenses, this year we did some work to enhance our operating efficiency. We have been controlling costs and our cost control work has been effective. As a result, other expenses decreased. 关于您说到的佣金和推广费用，从目前来讲的话，就是上半年的话，继续是根据我们的市场销售政策，包括我们的旅客量的处理的离港旅客量处理量的增长，我们的佣金和推广费用也伴随这些业务的增长而产生的一个正常的增幅。 About commission and promotion expenses. In the first half of the year, we followed our marketing and sales policies. We also had increase in business because of an increase in number of passengers. So the increase in commission and promotion expenses is a normal result of the increase in the related business. 谢谢。我还想跟进一个其他营业成本的问题。您说有成本管控，有些很成效，在上半年。如果我们这样想的话，下半年如果还持续有了成本管控的成效的话，可不可以认为去年那个3.6个亿其实是很高了，所以说今年下半年应该也是下降很多的。不知道这样来认知是不是正确的？ You just said that because of your effective cost control work and measures, other expenses decreased. Is it true that the CNY 360 million of other expenses of last year was really very high? If you are going to continue to carry out cost control work, then in the second half of this year, other expenses should come down quite significantly. Is it the case? 这里边是涉及到两个问题：去年的话，去年整体上我们受到IFRS 9号准则的影响，实际上我们去年在预期信用损失上面同比是计提了较多的预期信用损失，这也导致了我们去年的其他营业成本增长较快。那么在今年的话，这部分伴随我们对我们应收款项的进一步的加大这种清理力度，那么我们在这方面的话有可能会有所下降。 Last year, because of the impact of IFRS 9, we had made quite a lot of provision concerning foreseeable loss. As a result, other expenses went up quite a lot. This year, we have been doing quite a lot of receivable clearance or recovery of receivable work. We believe that as a result, other expenses should be able to decrease. 谢谢，谢谢管理层耐心的解答。 Thank you management for the patient answers. 下一题问的是金卫健、林立森、陈。喂，管理层可以听到吗？可以听到。你好，我是元老盛资产的陈炳文。我这边有几个小问题想请教一下肖总，还有其他的管理层。一个是关于咱们这个收入和单价方面。我们看到上半年的AIT收入的增速是略快于咱们的这个业务量、订座量的增速的。想请教一下这个国内航和国外，就是分别看国内航和外航的这个ASP，同比来看大概是一个什么样的情况呢？是不是我们在单价方面略有提升，导致收入端的增速略快于流量？然后第二个小问题是，因为我们给国内航司提供的ASP是一个打包的收费，包含了库存、增交，还有离港的整体一个打包收费。那么如果说航司未来假设可能其中某一项服务不使用的话，还是按照这个整个打包来去收费，还是说我们会扣除掉某一些费用这样子的情况？然后第三个小问题是关于佣金和推广成本这块，之前也有解释过了。那我想具体请问一下，就是因为这块里面，一方面是我们支付给机场的离港返还，一方面是我们支付给可能一些国外OTA的佣金费用。我想请问一下，具体我们增速放缓是哪一块放缓比较明显？这两块分别的一个情况是怎么样的？谢谢。 My first question is about the AIT revenue. Growth in AIT revenue is faster than the growth in business volume. Is this because of the increase in your ASP? What is the ASP for Chinese airlines and foreign airlines? The second question is for the Chinese airlines, you charge a packaged fee, which covers three different service areas. In the future, let's say if any Chinese airline chooses not to use a particular service, do you still impose a packaged fee on them? Or will you deduct the amount of fee of service that they are no longer using from the total fees? The third question is about commission and promotion expenses. Part of these expenses are the amounts paid to the airport, and some will be OTA commission. I would like to know which of these two is showing a slower growth that has led to the slow growth in the commission and promotion expenses. 第一个问题，关于AIT部分的话，可能您在算平均单价的话，可能发现我们有一定的增幅。实际上这里边的话是受上半年这个汇率因素影响，可能实际导致我们的承接外航的收入部分的话，实际上增幅会高于业务增幅。这样的话，导致我们整体的IT收入的增幅，可能您看起来会高于业务量的增幅，这是其中的主要原因。 Regarding our AIT income, there is an increase in the ASP. In the first half of the year, there was also foreign exchange impact. As a result, the revenue from foreign airlines is actually bigger or growing faster than the business volume growth. As a result, the total AIT revenue growth is also faster than business volume growth. 我想在这里追问一点小问题，就是因为我们外航这边的量比较小，那想请问一下，我们对于国内这块的ASP，上半年是一个企稳的状态，还是说还是延续此前略有小幅下降的这样一个趋势呢？ Your business, your revenue from foreign airlines is relatively smaller. For Chinese Airlines, if you look at the first half ASP, has it come down or is it rather stable? 基本趋势没有变化。 Basically, the trend has not changed. 那么关于你刚才提到的第二个问题，就是打包收费的问题。那目前我们跟航空公司都是这种几个系统打包来收取费用的。因为这几个平台它们之间的联系是非常紧密的，而且打包收费对航空公司来讲也是最优惠的。那么未来如果说你说选择其中的一个部分来使用的话，那我想未来肯定需要重新协商，而且我相信在价格上一定是会有很大的不同的。 You asked a question about the packaged fees. This is because several systems are closely connected with one another, and packaged fee in fact is the most preferential, the most favorable to the airlines. If some airlines decide to choose some services to use and not to use some services, then definitely we have to go through a re-deliberation and negotiation process, and there will be change in the price. 还有一个关于佣金推广费的问题，具体是哪些项目的增长放缓，是给机场还是给OTA？实际上您可能看到的，其实并不存在一个放缓的问题。这里面您也对我们的业务比较了解了，其实在佣金及推广部分的话，实际上主体上是我们的离港返还，同时还有我们代理人的佣金，还有我们的第三方支付业务的部分支出。这几边的话，从目前来看的话，这三项业务在上半年表现都比较正常，同时它也是伴随包括我们的离港返还，也是伴随我们的离港旅客处理量，也是一个正常的增长。所以目前其实并没有存在一个增速放缓的异常情况。所以我可以理解为去年可能这方面的一个增速是有一个异常向，现在恢复到一个正常。可能您也比较了解我们去年，因为去年的话，公司在我们的海外的推广上边，我们有加大了一部分推广的投入，所以可能是说当时我们的投资的朋友们都比较关注，因为它的数据相对来说会显得它的数字增幅过大一些。那么从目前来看的话，其实您也看到了我们的整体涨幅应该是说跟我们的业务涨幅是比较相似的一个状态。 If you look at our commission and promotion expenses, actually it had not shown any sign of slowing down. It comprises three types of expenses. For example, the fees paid to airports, the OTA commission, and also another service area. Well, in the first half of this year, all these businesses were very normal. There isn't really a slowing down in the growth in these expenses. The follow-up question was, is it because last year there was an irregular growth in this commission and promotion expenses, and this year things have normalized? Then the answer is last year we did quite a lot of overseas promotion, and so there was quite a big increase from that, and it was regarded as a bit excessive in terms of growth in this area. So now the growth in commission and promotion expenses are more in line with our overall business growth. 好，谢谢龚毅总。 Thank you. Martin Curry. Yeah. Hi there, thanks very much for doing the call. I'm sorry, we're kind of running well past the hour at the moment. Just a very quick question on margins. I mean, based on what you've said so far in terms of R&D and staff costs and also the kind of cost control and the other expenses, I'm just wondering, I mean, what do you think is a reasonable assumption to make regards future EBITDA margin trend? I think we saw just over 40% in the first half this year, and hopefully that reflects the impact of IFRS 16. Secondly, if you [Foreign language] at the systems integration business alone, how profitable is that relative to the rest of the business? In other instances, I mean, obviously it's project by project basis, but I mean, other instances where you're taking on projects that are either low or even zero margin as a kind of loss leader for the rest of the business. Thanks. 我这个问题是关于你们的利润率的。刚才你们都提了很多，就是关于你们研发费用、人工成本，所有的成本控制，知道在其他的费用方面都是有一个能够下降的情况，那么未来你们的利润率会是怎么样呢？在今年的头半年是超过40%的，那未来的趋势会是怎样？另外的问题是关于你们的系统集成的业务，如果相比其他业务板块的话，这一块系统集成它的盈利比起其他的业务板块是怎么样呢？有没有一些情况是你特别做一些系统集成的项目，是零利润率或者很低的利润率，就用来去吸引其他板块的一些业务呢？第一个您提到的就是营业利润率的话，实际上我们去年上半年是42%，那么今年是40%，我们基本上维持一个较为稳定的状态，也可以看一下近三年的数字，都是稳定的这种状态下，因为我们目前来看的话，就您提到这些成本支出项都是管理层严控的事项，所以在目前我们认为还是一个较为乐观的状态。 Concerning our operating profit margin, in the first half of last year, it's 42%. In first half this year is 40%. So in the past three years, we have been quite stable in the operating profit margin. The management has been very stringent in our cost control measures, so we believe that we are optimistic in this regard. 然后您提到的第二个系统集成，因为这项业务它是我们主要面向以机场客户为主，还包括其他行业客户，在这部分业务不同项目利润率存在较大的差异，这也根据我们接到的项目的所包含的业务任务包不同导致的。 For system integration business, we face mainly airport customers. There are also other customers in other industries. Our profit margin is different for different types of projects, depending on the task, the actual task, and work that we have to do. 好，听得到声音。好，下一个提问。下一个问题。UBS。已经给大家延长了15分钟时间了，然后还请大家继续提问，简要一些。我们肖总还有余总历，财务部部长都会为大家尽量解答，今天尽量把大家的问题都解答完。感谢大家。你好，管理层。各位领导好，请听得到吗？董事长，听得到。非常感谢，非常感谢您今天的时间。首先我想很快问一个之前问过的关于R&D的问题，之前几个领导解释说R&D主要是包含在人工成本和技术支持里面。然后我们看到上半年技术支持费用有下降，人工成本有所上升。之前领导们也解释了，比如说是因为根据行业一些惯例来调整一下员工的一些工资的发放。想问一下，同时几个领导也提到说R&D方面我们之后会稳步地继续来开展，想问一下未来是这个，我应该怎么理解呢？因为如果只是看比如说社保缴费或者是工资的结构变化，是这个来代表，还是说在其他的，比如说我们是在一些人工智能、面试或者其他一些技术方面来做R&D的推进，这个方面想问清楚一下，谢谢。 My question is about R&D expenses. The management just said that it comprises two parts: staff cost and also technical support. For staff cost, it went up in this first half; technical support, it came down. You also made adjustment to the disbursement of salary, the timing of disbursement according to the practice in the industry. You also said that you will be very steady in increasing your R&D investment. How should we interpret these R&D expenses? Should we consider, for example, the social security payments and also changes in staff salaries? Then what about the AI or other use of technologies? How are you going to interpret and consider these as well? 这个问题就我们继续之前的回答。其实就是说您提到的问题，关于研发的投入，从财务角度上，就您见到的报表里边，我们可以沟通上面，我们在报表收入，因为研发我们主要是使用研发人员进行技术开发，同时因此导致的话，研发人员的薪资以及我们外聘的、外包的业务协作导致引起的技术支持费，会成为我们研发投入的一个主体的财务事项的体现。当然可能还有一些围绕着研发业务所产生的一些其他的配套的费用，比如房产、设备，这些会体现在我们的其他的科目里边。但是主体上会体现在人工成本和技术支持方。 For our R&D investment, basically if you look at the financial statements, the R&D expenses represent the staff cost for our R&D people, because they will do the research and development work, their salaries will mainly be in this item. At the same time, we have contracted out some R&D work. As a result, there is this technical support item. However, there are other related expenses related to R&D investments. For example, the expenses and investment in relation to properties and equipment, and these will be shown under other items. 非常感谢领导。另外一个小问题想问一下，我们这个软硬件销售成本其实也有60%多的增长，这个我们应该跟收益里面的系统集成服务联系起来吗？如果这样的话，系统集成服务似乎就是它的这个operation income，如果分到系统集成服务里面似乎不增反降。我这么理解对吗？并且这个趋势未来会保持下去吗？谢谢。 I have a question about your software and hardware sales expenses, which has actually increased 60%. Is this related to your system integration services? However, if you look at the operating income from this, it has decreased rather than increased. What will be the trend in the future? 其实这个问题，依据刚才的回答，我们集成业务类的话，集成我们这一类业务，它的收入会体现在这个集成业务收入，同时它的成本会体现在多项，其中设备销售成本是其中的一项，同时还有其他相关费用，所以它整体的核算是与我们每个获得的业务项目的构成有关。比如我们有些项目可能是以硬件设备投入为主，这样会导致我们的设备的采购成本比较高，有些项目可能以运维或我们自有软件使用为主，这样会导致这个项目的相对来说成本的体现不明显，它的利润率会偏高。那么这不同的项目的利润率的确差异很大。 In relation to our system integration revenue, actually, we have the system integration revenue being reflected in our financial statements. But as regards its cost and expenses, there are a number of different items. For example, there is equipment sales expenses and also other expenses. This really depends on the actual content and details of different projects. Different projects differ in this regard. Now if a certain project involves mainly hardware equipment investment, then there will be the hardware procurement expenses, which will be bigger relatively. However, for another project, if it involves mainly the use of our own software, then there wouldn't be a big equipment procurement expense. On the other hand, the profit margin will be relatively higher, so the profit margin differs in different projects. 感谢几位领导。最后一个小问题，可不可以对今年的折旧摊销给一个指引？非常感谢。 Can you give a guidance on depreciation and amortization for this year? 这个问题是这样的，从目前来看的话，下半年的话与上半年的话，我们目前信息看，趋势应该是没有什么变化，比较相似。 For the second half of the year, I think the trend will be more or less the same as in the first half, so there won't be much change. 非常感谢，感谢领导宝贵的时间。谢谢。 Thank you management for your valuable time. 下一位是来自CNG, HSBC。你好，真不好意思，耽搁这么久。我几个问题我就问一下，然后他们再翻译一下吧。首先想问一下，刚才其实提到好几个问题，就是说系统集成里面，我们这些设备的部分，设备购置、设备销售的这一部分，这个可以理解成是零利润的，或者低利润的这种销售呢，还是正常利润的销售呢？这有没有必要做一些调整？第二个问题想问一下，春秋那边我们三月份不是有给他们做一些，他们进来我们的系统嘛，现在已经四五个月下来了，这个情况怎么样？特别廉航这方面，以春秋为一个突破口，进展得如何？后面几个问题再翻译后想问。 First question is about system integration. As such as now there is equipment procurement and equipment sale in this segment. If you look at this business, is it on a zero profit or normal profit situation? Is there a need to make adjustment to this? Another question is that in around March, there is the Spring Airlines already being incorporated in your system for 15 months already. What will be the future trajectory looking forward? 我们跟春秋航空公司从去年就一直在探讨全面合作。应该从今年以来，我们之间的合作越来越多。合作的成果应该在下半年或更长的时间能体现出来。 Starting last year, we are deliberating with Spring Airlines on all-round cooperation. This year you can see more and more cooperation between the two of us. In the second half, we believe that the results, the achievement from our cooperation can be gradually reflected. 关于您说的系统集成问题的话，实际上这部分利润如果定义为低利润或无利润，我们认为好像跟事实是不太相符的。 Well, if you say that the system integration business should be defined as a zero profit or low profit business, I don't think this is in line with the reality. 目前这类业务的话，利润率不同，但是我们认为都是保持了一个合理的利润水平。 Even though different projects give different profit margin on the system integration, we believe that the profit level is within reasonable range. 我问的不是这意思，我是说系统集成里面是有两部分，中间一部分是设备的直接销售。我说设备的销售这部分也是有不同的利润率，是这样理解的，还是设备的销售是属于一种低利润率的设备销售，是这样问的。 My question actually means the following. For system integration, there is a part which is equipment direct sales. For this equipment direct sales business, is it giving a very low profit or is it giving you different profit margin in different projects? 的确是这样，因为我们在不同项目上，设备在使用上，有外购设备，还有采用我们自有设备。因此这种情况下，不同的设备所占比例不同，也导致它的利润率也是不同的。 Because in different projects, there may be the involvement of using equipment bought from outside or using our own equipment. As a result, the profit margin will be different because of these arrangements. 那么春秋的，我想再追问一下，您说我们现在已经有这种合作的模式，这种合作模式跟我们现在跟国内这种非联盟的打包的模式有什么样的区别呢？或者在客源上有什么区别？然后对您的营收，下半年以后这个营收上面，或者利润率上面各会有什么样的影响？ I have a follow-up question on your cooperation with Spring Airlines. You have already started to have a cooperation model. Comparing this cooperation and packaged fee arrangement with other Chinese airlines, what is the difference? Is there a difference in terms of the source of passengers? For the second half, if you look at revenue and profits, profit margins, what will be the developments? 春秋航空跟航信的合作是全方位的，但是春秋航空公司是一个低成本的航空公司，所以它的很多的合作方式都是我们双方共同讨论定的，但是在这儿就不愿意透露了。 We have all-round cooperation with Spring Airlines, while they are a low-cost carrier. We have deliberated and established some cooperation methods and approaches. However, we are not in a very good position or convenient position to disclose those details. 我最后一个问题就是，我们16年不是去爱尔兰买了一个OpenJaw做NDC的吗？想问一下这家公司现在进展情况怎么样？然后相类似开发的这种NDC产品卖给国内的航空公司，现在接受情况怎么样？那么收费情况还是免费给的，还是可以进行收费的？能讲一下吗？ In 2012, you had a project in which NDC products were developed, were bought from Ireland. I want to know the progress of processing of those products right now. If those NDC products are sold to Chinese airlines, is it on a free of charge basis or are you charging a fee? 首先，这个OpenJaw不是仅仅做NDC服务的一个技术提供商，它是一个全面零售业务的解决方案的供应者。OK，please。 First of all, that vendor is not only working on NDC service, it is a comprehensive retail solution provider. OpenJaw 在中国主要做的是航空公司零售的业务这两年的发展速度非常的快，收入的增长也非常快。 In China, the company is actually working on retail in the aviation sector, and they have been developing very fast. Their revenue also increased fast. OpenJaw 在海外的业务涉及到了 NDC 的解决方案，发展的也是非常不错的。 In terms of overseas business, they provide NDC solution, and their development has also been quite good. 能说一下NDC现在大概销售量现在大概多少，年增长率大概多少？然后在我们的收入表上，这个是记在系统集成服务里面，还是在数据网络服务里面？ For the NDC part, what is the sales volume annually? What is the annual growth rate? Is it reflected in your system integration segment or your data network segment? 国内的NDC服务是航司自己在提供的，海外的NDC服务是OpenJaw在做，所以具体的数字我现在没有。记得拿一下。 OpenJaw only provides NDC service for foreign airlines, but the exact details and data are not with me now. OpenJaw 现在一年销售量有多少？ What is the annual sales right now? OpenJaw 现在就国内国外都包括在内。从目前它的收入看。 For OpenJaw, they include both Chinese domestic and also overseas. 它的收入会体现在其他业务收入中。 Their income is reflected in other income. 多少量？有个价值，增长率是多少？能讲一下吗？ Can you give us an amount in terms of the actual volume and what is the growth rate, please? 好，那我们下次吧。因为我们得讨论一下，看看这披露不披露，因为我们没有披露过这个数。 We haven't disclosed this information in the past, so we have to discuss whether we can disclose it or not, so let's leave it for next time. 那没有关系了。最后再追问一个，香港这边，6月份以来这种事情，国泰的这些事情，这个对我们会有一个显著的影响吗？因为我们对国泰好像也有一些合作关系。到目前为止没有。 Looking at the situation right now, since June in Hong Kong and also the incident about Cathay Pacific, since you also have some cooperation with Cathay, has there been some impact on your business? The answer is, up till now, no impact. 谢谢，这都是我该问的。谢谢。 Thank you. 好，谢谢。到点了。质询时间到此完毕。管理层有什么补充吗？没有了。谢谢各位。大家问题都提完了，是吧？谢谢各位。宣布还有谁？没有。好了，谢谢。如果大家还有新的问题的话，可以再跟我们投关联系，然后我们再约时间再会面。谢谢。 Thank you very much. This concludes our Q&A session. If you have further questions, please feel free to contact our investor relations department, and we will see each other again in January. [Foreign language] This concludes today's conference call. You may disconnect now. Goodbye.