Hello, ladies and gentlemen. Thank you for standing by for NIO Incorporated Second Quarter 2020 Earnings Conference Call. At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr.
Ray Chen, Director of Investor Relations of the company. Please go ahead, Ray. Thank you.
Thank you, operator. Good evening and good morning, everyone. Welcome to Miu's Q2 2020 early conference call. The company's financial and operating results were published in the press release posted today and are posted at the company's IR website. On today's call, we have Mr.
William Li, Founder, Chairman of the Board and CEO Ms. Dylan Feng, CFO Ms. Danny Qu, VP of Finance and Ms. Jade Wei, AVP of Investor Relations. Before we continue, please be kindly reminded that today's discussion will contain forward looking statements made under the Safe Harbor provisions of the U.
S. Private Securities Litigation Reform Act of 1995. Forward looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding risks and uncertainties is included in certain filings of the company with the U.
S. Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required under applicable law. Please also note that NIO's earnings press release and linked conference call include discussions of unaudited GAAP financial information as well as unaudited non GAAP financial measures. Please refer to NIO's press release, which contains a reconciliation of the unaudited non GAAP financial measures to comparable GAAP measures.
With that, I will now turn the call over to our CEO, Mr. William Li. William, go ahead, please.
Hello, everyone. Thank you for joining NIO's 2020 Q2 earnings call. In the Q2 of 2020, NIO achieved record quarterly deliveries of over 10,000 units and delivered an aggregate of 10,300 and 31 years 8 years 6, representing a strong growth of 190.8% year over year and 169.2 percent quarter over quarter. In July 2020, NIO delivered 3,533 units, marking the 2nd highest monthly delivery results. The cumulative deliveries in the 1st 7 months of 2020 increased by 111.3% over the same period of 2019.
Starting from October 2019, ES6 has ranked as the top selling SUV across all EV sectors in China. For the first half of this year, ES8 has also achieved the number one in sales among mid to large size luxury electric SUVs priced above RMB 400,000 in China. In the Q3, we are confident to achieve a new quarterly record of 11,000 to 11,500 deliveries. As for the gross margin, with the strong momentum of quarterly deliveries, rise of average selling price, reduction of battery pack and other BOM costs and improvement of manufacturing efficiencies. Our gross margin has substantially increased in the 2nd quarter.
The vehicle margin and the gross margin reached 9.7% and 8.4%, respectively, far above our previous guidance of 5% 3%. We will continue to improve our gross margin and expect our vehicle margin and the gross margin to both With the gross margin turning positive and the operational efficiency improving comprehensively across the company, The operating loss of the 2nd quarter has further narrowed to RMB1.16 billion, representing a decrease of 64% year over year and a decrease of 26.1% quarter over quarter. The significant increase in deliveries and the direct sales model and the great support from supply chain partners have enabled us to achieve positive operating cash flow for the first time in our history. In the Q2 of 2020, the Q2 of 2020 is a milestone quarter for us. NIO has made significant breakthroughs in sales, gross margin, operational efficiency and cash flow.
After our enduring efforts in the past year, we have found over pace to implement efficient management and solid execution on near term operational objectives. And meanwhile to make decisive investments in R and D and services for our long term competitive edges. Next, I would like to share with you our recent key priorities. With respect to R and D, as the company overall situation improves, we have accelerated the new product development and will increase our investment in the autonomous driving technology. So we can develop industry leading technologies to maintain the long term competitiveness of our products.
In terms of the project, the EC6, our smart electric coupe SUV was officially launched on July 24 with a pre subsidy price starting from RMB368000. It has been very well received by the users and the market and presented a stronger order performance above our expectations. The mass production of EC6 is proceeding well according to plan and we will commence deliveries in late September. As for production capacity, the manufacturing team is going to increase the production rate of the Hefei plant from 15 drops per hour to 20 drops per hour, while working together with supply chain partners to improve their capacity at the same time. By late August or early September, the overall supply chain capacity on a single shift is expected to reach 4,500 to 5000 units per month.
Regarding sales and service network, we have opened 22 new houses and 119 new spaces in 89 cities and 142 battery swap stations in 63 cities in China. Moving forward, we will further expand the coverage of the battery swap stations and new spaces to better serve our users. In the meantime, we have also made profound progress with the innovative business model of battery as a service, namely decoupling the battery from the vehicle. We have completed the necessary product obligations and certification required to be qualified to sell vehicles and batteries separately. The process of the first vehicle under the bus model has been validated, including insurance purchase, loan application and the license plate registration, this is a breakthrough moment in our technology and the business innovation.
Currently, we are still working on the final preparation for the official offering of our best solution, which will be released publicly in the Q3. Along with the increasing recognition from the users, governments and the industries, we believe the advantages of our chargeable, squabbable and upgradable products and the services system will become more self evident. As we deliver more and more vehicles, our user base is growing while the user community is maturing. On August 8, 2020, the New Day 2020 host city bidding campaign came to a conclusion. Over 40,000 NIO users actively participated in the voting.
After fierce but friendly competition, Chengdu stood out among 10 cities and won the bid to host the New Day 2020. Every little bit of our progress will not be achieved without the trust and the support of our users. The bidding campaign of New Day 2020 has once again demonstrated the vibrancy and the enthusiasm of the NIO community. I would like to thank our users and everyone for their support. With that, I will now turn the call over to Stephen to provide the financial details for the quarter.
Stephen, please go ahead.
Okay. Thank you, William. I will now go over our key financial results for the Q2 of 2020. And to be mindful of the length of this call, I encourage listeners to refer to our earnings press release, which is posted online for additional details. Our total revenues in the second quarter were RMB3.72 billion or US526.4 million dollars representing an increase of 100 and 46.5% year over year, an increase of 171.1 percent quarter over quarter.
Our total revenues are made of 2 parts, vehicle sales and other sales. Vehicle sales in the 2nd quarter were RMB3.49 billion or US493.4 million dollars accounting for 94% of total revenues in this quarter. It represented an increase of 100 and 46.5% year over year, an increase of 177.6% quarter over quarter. The increase in vehicle sales year over year was primarily due to the increase of vehicle deliveries of the ES6, which began its first deliveries in mid June 2019. Other sales in the second quarter were RMB232.8 million or US33 $1,000,000 representing an increase of 147.7 percent year over year, an increase of 100% quarter over quarter.
The increase in other sales year over year was mainly attributed to increased revenues derived from the service package and energy packages subscribed, home chargers installed and accessories sold, which were in line with increased volume in the Q2 of 2020. Cost of sales in the Q2 was RMB3.41 billion or $482,100,000 representing an increase of 69.2 percent year over year, an increase of 121.2 percent quarter over quarter. The increase in cost sales year over year was mainly driven by the increase of delivered volume in the Q2 of 2020. Gross profit in the Q2 of 2020 was RMB313.1 million or US44.3 million dollars representing an increase of 162.1 percent year over year, an increase of 286.9 percent quarter over quarter. The increase in gross profit year over year was mainly contributed by increased vehicle sales and higher gross margin in the Q2 of 2020.
Gross margin in the Q2 of 2020 was 8.4% compared with active 33.4% in the same quarter of 2019 and negative 12.2% in the Q1 of 2020. The increase of gross margin year over year was mainly driven by the increase of vehicle margin in the Q2 of 2020. More specifically, weaker margin in the Q2 of 2020 was 9.7%, compared with effective 24.1% in same quarter of 2019 and negative 7.4% in the Q1 of 2020. The increase of vehicle margin was mainly driven by the decrease in purchase price of certain materials and lower unit manufacturing costs attributed from increased production volume in the Q2 of 2020. Besides above, the increase of vehicle margin year over year was also attributable to impact of 1 off cost in relation to the company's voluntary battery cost in the Q2 of 2019.
R and D expenses in the second quarter were RMB545.2 million or $77,200,000 representing a decrease of 58.1% year over year, an increase of 4.4% quarter over quarter. The decrease in R and D expenses year over year was primarily attributable to the intolerance of expenses relating to rigorous testing activities of ES6 in the Q2 of 2019 before its mass production. SG and A expense, SG and A expenses in the Q2 were RMB936.8 million or US132.6 million dollars representing a decrease of 34.1% year over year, an increase of 10.4% quarter over quarter. The decrease in SG and A expenses year over year was primarily driven by the company's overall cost saving efforts and improved operating efficiency in marketing and other supporting functions. Blocks for operations in the second quarter was RMB1.16 billion or US164.2 million dollars representing a decrease of 64% year over year and a decrease of 26.1% quarter over quarter.
Share based compensation expenses in the 2nd quarter were RMB45.3 million or US6.4 million dollars representing a decrease of 50.9% year over year, an increase of 39.8% quarter over quarter. The decrease in share based compensation expenses year over year was primarily due to less options granted driven by the decline in the number of employees and impact a part of the share based compensation expenses being recognized by using the accelerated method under which the expenses decreased gradually over the vesting period. Net loss in the second quarter was RMB1.18 billion or 166.5 million dollars representing a decrease of 64.2% year over year and a decrease in net loss attributable to Inyo's ordinary shareholders in the 2nd quarter was RMB1.21 billion or US171 million dollars representing a decrease of 63.6 percent year over year, a decrease of 29.9% quarter over quarter. Basic and diluted net loss per ADS in the 2nd quarter were both RMB1.15 or RMB0.16 per ADS. Excluding share based compensation expenses and accretion on redeemable life control insurance to redemption value, Non GAAP adjusted basic and diluted loss per ADS were both RMB1.08 or $0.15 per ADS in 2nd quarter.
Our balance of cash and cash equivalents, restricted cash and short term investments was RMB11.17 billion or US1.58 $58,000,000,000 as of June 30, 2020. And now for our business outlook. As William mentioned, for the Q3 of 2020, the company expects deliveries to be between 11,000 to 11,500 vehicles, representing an increase of approximately 100 and 29.2% to 100 and 57.6% for the same quarter of 2019, an increase of approximately 6.5% to 11.3% from Q2 of 2020. The company also expects the total revenue of the Q3 2020 to be between RMB4.05 billion to RMB4.21 billion or between RMB572.9 million to RMB596.2 million. This would represent an increase of approximately 120.4 percent to 1.39.3 percent from the same quarter of 2019, an increase of approximately 8.8% to 13.3% for Q2 of 2020.
This business outlook reflects the company's current and the preliminary view on the fiscal year and market conditions, which is subject to change. Now this concludes our prepared remarks. I will now turn the call over to operator to facilitate our Q and A session.
Certainly. Ladies and gentlemen yes, certainly. Ladies and gentlemen, we will now begin the question and answer session. We have the first question from the line of Tim Hirshawa from Morgan Stanley. Please go ahead.
Hi, William, Stephen, Jade and Wei. Congratulations on the strong results and thanks for taking my questions. So two quick questions. The first one regarding 2nd quarter's gross margin because you came in as a strong beat versus previous guidance. I think in addition to the strong scale, because you just mentioned also attributable to the high average revenue per vehicle.
So could we have a rough idea what's the gross margin difference between like ES8 and ES6 at the moment? And could we expect ES6 margin to reach similar level as ES8 with additional contribution from EC6 later this year? And my second question is about R and D expenses. Because if you look at the state and first half, I think that R and D expenses are under great control. We said around like $500,000,000 to $600,000,000 per quarter despite the modern launch.
So would this be the normalized level? Because as William mentioned about investment in new vehicle development and also the autonomous driving technology. So we have the rough also have the rough breakdowns about how many percentage of the R and D is now for the vehicle development and the rest like autonomous driving and other technology? Thank you.
This is Danny. For the first question about the gross margin of ES8 at ES6, generally the gross margin of ES8 is higher than ES6. And we are trying to improve both the two models in the future, but we won't break down details of margins of each models. Okay?
I would like to answer the second question regarding the R and D investment. By now, we would like to control our R and D investment within billion every year, including the labor cost, the supplier's EDD cost. In terms of the breakdown, of course, the percentage we invested for the vehicle related R and D is higher. But just like I mentioned, we will increase our investment autonomous driving technology. Right now, we have already got a team around 200 people focusing on the autonomous driving technology development, which account a fixed part of the RMB cost.
For the next generation autonomous driving technology, we are going to increase our investment. But at a normal pace, just like you mentioned, it should be around RMB500 1,000,000 to RMB600 1,000,000 for 1 quarter. But for some quarter, because of our project development cadence, we may need to increase this investment.
Thank you. Got it. Thank you very much.
Thank you. We have our next question from the line of Bing Huang from Credit Suisse. Please go ahead.
Actually, I got 3 questions about Autonomous questions. Number 1, about launch timing of their 2 features, 1 is the NGP, navigation guide patterns and second, about their summer features will be launched because they have been shown in their new apps will maybe come up this year. So I just want to know the exact timing. The second thing is about the penetration because we want to get such a feature to pay additional RMB 39,000 as a package. So what's the penetration right now and what's the ratio has been moving in the past few months or quarters?
And the third one is that following next generation autonomous which is the level 4, acoustic media in partnering with Mobileye on the EQ5 chips. So what's the timing for launching the level 4? Thank you.
Thanks for your question. Regarding the navigate on pilot feature, we're now doing rigorous tests on this feature and we plan to release this within 2020. However, regarding the new line sampling feature, because of the hardware constraints, other feature is not as competitive as the Tesla's nearby family, because other features can only support getting out and in the parking space. So, I don't want to mislead to the users. But together with the HD map, we believe our Navigate on Pallet can achieve a very good performance.
Regarding the second question for the take rate of the Navigate on Talent, We have the Founders Edition, which accounted for around 10,000 units. This founder's edition has the MOP as a standard feature. So this is quite helpful with the take rate of our speaking. But normally speaking, the take rate for the MOP right now is
around New pilot. New pilot.
Right now, for the take rate of the new pallet is around 25%. This year we have released a selected new pallet, which priced around RMB10,000, which has enjoyed a much better take rate. For the next generation autonomous driving technology or our new technology platform 2.0, right now we are speeding up our development pace for this new technology platform, but it's still too early to share any specific information regarding the technology roadmap. All I can see right now is we set very high bar to ourselves for this next generation platform. And we have been working on the autonomous driving technology development.
In 2018, when we released the ES8, we are the 1st car to be equipped with the mobile IQ4 chipset. Other competitors, they launched the car with the IQ4 chipset around 1 year later. So it shows that we have much more experience in terms of the mass production and autonomous driving. Over experience in this regard has been kept it and verified. So for the next generation platform, we would like to set a much higher standard for ourselves and we will keep you guys updated at a timely manner.
But here I would like to emphasize that we don't actually use the Level 3 or Level 4 to define our AD technologies. With 2 different criteria from the users' interest perspective. The first one is that we focus on how much time we can free up for our users. And the second criteria is how many accidents we can reduce compared with the human driver. We believe that these two criteria are more important than the definition of level 3 and level 4.
Okay. Thank you. Actually from the website, you may go to Germany later this year. So just want to know your global return plan also
From day 1, NIO is different from other companies. We are a global startup. So we have kept our normal operation in the San Jose and German office, even despite the most difficult times in last year. Even with the COVID-nineteen, we still operate normally in the overseas office. So we are now doing the preliminary research regarding the international market entry, including the product appropriation, team building and also the market entry planning.
But this year, I believe everyone understand it's not a very good year for us to enter the international market. We understand many overseas media pay great attention to our product after the renowned European and the U. S. Media tested our vehicle, they also speak very highly of our vehicle. So we would like to do this step by step and to build up our capabilities to enter the global market.
So I would like to ask for new patients.
Thank you so much and congratulations for the great results. Thank you. Thank you. See you on the
Thank you. We have our next question from the line of Lei Wang from CICC.
This is Wen Lei speaking from CICC. SICC. Congratulations on the positive cash flow and better than expected gross margin. That's for sure a good move. I have 3 questions on the financials.
So the first question goes with the gross margin. I know William just guided the GPM above 10% by end of this year. But considering we just have heated 9% 9.7% vehicle gross margins by the Q2 already, Can we have an updated gross margin targets, if you have any? That's the first question.
Hi, Weiwei. I would like to answer the first question. Generally, in the Q3 and Q4, we expect the vehicle average selling price remains relatively stable. And for the battery pack cost, we foresee there will still some room for us to further reduce its cost. Yes, together with other cost savings for the form, I think generally the 10% over 10% target for vehicle margin and the overall margin can be achieved.
But as you mentioned, whether we want to further like increase our targets for the gross margin, I don't think we want to do this at this moment. I think we still keep like the guidance of over double digit in the second half.
Of course, we understand that there are still room for improvement in terms of the gross margin and the many other aspects, but we would like to move forward according to our own pace. Just like the last quarter, we would like to keep a more conservative attitude regarding those targets.
All right. Thanks, Oliver. Thanks, Jess. So the second question goes with the operating cash flow. I think that's primarily driven by optimized working capital and I wanted to see if you or Stephen could kindly provide a breakdown.
Hi, Wei, this is Dan. Regarding the positive cash flow, yes, generally there are the following reasons which drive the positive cash flow. The first is operating loss. We control that at a relatively lower level. And second, as you mentioned, we renegotiate the credit return and also the payment methods with our suppliers.
And for example, we asked the supplier to extend the credit term from 60 days to 90 days and also ask them to accept the back notes instead of cash for the payment of the purchase. So the third one, as William mentioned, the direct sales model and also the leading make us to receive cash collections earlier than the payment to the suppliers. So generally, all these reasons drive us to achieve the positive cash flow in Q2. Yes.
Thanks, Ben. I think the payment terms is a very positive signal as the supplier already has some confidence on NIO. That's a pretty good example. So the third question and the last question, we didn't mention the monthly production capacity of between 4.5 ks to 5 ks units? And as Stephen just guided, roughly 11,000 unit car deliveries in next quarter.
And why do we see a gap between the production capacity and the sales outlook?
David, this is Steven. First, we increased our plant capacity at end of August. And in most any plant, which tries to increase its product capacity, there is a ramp up period. Okay. So our production capacity in July August is still below 4,000 units.
That is a constraint for our delivery in Q3. And we why do we increase our product capacity to 4,500 to 5000, that's because that's the preparation for our Q4 delivery.
We want to improve the production capacity is because of the strong demand in the market. Many of my friends have asked me to check whether it's possible to have their ES8 delivered early. So there is a very big ES8 order backlog right now. As I mentioned, the ES6 delivery will commence at late September this year. So we also need some time to ramp up the production of the Yixin.
Before we start the delivery of the Yixin, we will start to accumulate orders for the Yixi 6. So it means that in the Q4 of this year, we're going to witness a significant pressure on our delivery and production. That's why we would like to increase our production capacity at the end of August, then we can be fully prepared for the EC6 ramp up and the Q4 delivery.
All right. Thanks, William. Thanks, Steven. That's all my questions. We finished the results.
Thank you. That's it. Thank you.
We have our next question from the line of Mason Li from Bufa.
Thank you, William, Stephen and the management. Congrats on the good results. Good question. So the first question is that I think the market seems does not understand too much on the battery as a service. So probably, I think, probably you can take this opportunity to give more explanation on the business.
So first of all, I want to know that folks, right now, how much of a battery assets on your book? And once you set up a new battery management company around how much assets you can reduce from your balance sheet. This can ease your pressure on balance sheets going forward? And also the second question is that once DAA's business model is confirmed, then I believe you can start to open the auto finance program for both vehicle as well as the battery. So I think that the down payment for consumers will be much lower compared to the current stage.
So how much more new demand do you think you can create sooner battery of the studies? So that's my first question.
Thanks for your questions. Battery as a service is a very innovative business model and it's quite difficult to validate this project. Just like I mentioned in my previous prepared remarks, we have now got the government approval and the first vehicle without the battery has already finished the validation process regarding the insurance purchase, the loan application and the license plate registration. Basically it means that you buy the car without the battery and it means that when you pay for the car you do not need to pay the cost of the battery. Previously we tried to launch similar plans, but because of the restrictions with the government policy, we didn't fully implement the real battery as a service business model.
But now, since we have already got the support from the government and the related policies, we believe it's the right time for us to do this. I would like to explain a little bit about the difference. Right now, if the users want to do the financing for the battery then you mean that at the beginning of the vehicle purchase, they can pay less money that is around RMB100000 less. Then they will have the monthly payment, but for that monthly payment, they cannot get the loan. So it means that we can use the ES6 as the example.
The price is around RMB 358,000 then it means that the users can pay RMB 258,000 at the beginning, but for this they cannot get the loan from the bank because of the government policy restrictions. But if we can go with the bus solution then it means that with the new product home engagement policy and the certification policy, the users can have less payment at the beginning, but they can still enjoy the loan for their monthly payment, which just like you mentioned should be able to lower the down payment as well as the monthly payment for the users. We believe that this is not going to affect over gross margin or probably it's even going to help us with the gross margin. But with this solution we should be able to help the users to lower their down payment and the monthly payment. And we believe that this is going to be a very good boost to our vehicle sales.
Just like I mentioned before, we will release the detail in the 3rd quarter. We are now at the final commercial preparation stage. A very important task for us is to prepare the setup of the battery asset management company. We are 1 party out of this endeavor, but we are not the main stakeholder. So it means it's not going to affect our balance sheet, but we would like to set up this company around August.
This asset company is going to own the battery assets and then lease it to the users. We believe that this is going to be a very innovative move for the whole industry and attract more parties to join this asset management company and build a virtuous cycle.
Thank you. We have our next question from the line of Paul Gong from UBS. Please go ahead.
Hi, thanks. Thanks for taking my question. I have two questions. I remember at the early stage of NIO, it has plans the ET7 as well as NIO plans, but they get either delayed or canceled last year. But nowadays, since you have received a lot of refinancing and has a much stronger balance sheet than last year, will you consider to build the second plan by yourself?
And will you consider launch the ET7 at some time or the first model be a different model? Can you give us a little bit color on the next model coming in the new day later this year?
Thanks for your questions. We have kept our cadence of launching 1 new product every year. After we released the YiT preview in the Shanghai Auto Show, we have attracted great attention from the market and the users. People are looking forward to our sedan product development. What we can see now is the next product will be a sedan, but I would like to ask for your patience.
We have a very comprehensive and detailed planning for our project development for the coming years. In the future, we see there is a need for the second plant, but right now we have a very successful cooperation with the JAC. The product that we manufactured together with the JAC has ranked at the top in many quality assessments conducted by the 3rd parties. I'm very confident with our cooperation with JAC and we do have room for improvement for the production capacity in our current plant. So we do not have an immediate need to kick off the second factory, but we are now working on the planning of the second factory because of our product development cadence.
We don't need to say that we will build the data plan by the clock. So what we need from the company's perspective is to make sure we have a sufficient capacity to support our project development and the deliveries. We are now preparing the sufficient capacity for the projects that we are going to launch in 2022. Another point is about the current NIO JAC plant. Without significant investment, we should be able to increase the production capacity of our current plant to 150,000 units under 2 shifts.
Thank you. That's very
helpful.
Thank you. We have our next question from the line of Alex Potter from Piper Sandler. Please go ahead.
Hi, thanks very much. I have one question on selling regulatory credits. You've probably seen that Tesla gets a fair amount of revenue, several $100,000,000 a quarter from selling regulatory credit to non compliant auto brands, primarily in Europe. And I know that China is considering a similar credit trading system. And I'm wondering if you are having discussions with any foreign auto brands or other auto brands to prepare to sell those automotive credits in the future in China?
That's my first question.
Thanks for your question. This year the Chinese government launched the NEV and the Thanks for your questions. This year the government has updated their policy of the NEV and the CFC credit, which they have launched in the past, which has helped us to increase the value of the credit that we are now on our hands. So we have accumulated around 100,000 due credits last year. According to the current pricing in the market, we should be able to generate RMB 120,000,000 for the revenue of the credit.
We are now talking to some OEMs. We plan to sell those credits in the Q3 or the Q4. We believe this is going to help us with the gross margin improvement. Different from Tesla, we're not going to account this as a part of the vehicle margin. We're going to consider this as part of the gross margin.
This year, we believe we are going to accumulate around 200,000 credits, which will be sold next year with an increased pricing. Of course, the pricing will depend on the demand and the supply in the market, but we believe this is the future direction because the Chinese government would like to make sure they use the credit to replace the subsidy and encourage OEMs to produce EVs. And we believe that there will be a very big market for the credit trading between different OEMs. Last year, with 20,000 units, we have achieved RMB120 1,000,000 of revenue, which means that for each vehicle, it can generate RMB60 1,000 revenue. With the increase to pricing, we believe this is going to benefit our gross margin in the long term.
Thank you.
As there are no further questions, I would like to hand the call back to our presenters for any closing remarks. Thank you.
Thank you again for joining us today. If you have any further questions, just contact NIO's IR team through the contact information provided on our website. This concludes the conference call. You may now disconnect the line. Thank you and stay safe.
Thank you. Thank you. See you next time. Thank
you. Ladies and gentlemen, that does conclude your conference for today. Thank you for participating. You may all disconnect now. Thank you.