Daqo New Energy reports positive EBITDA of $45.8 million, driven by rising polysilicon prices and reduced costs, signaling a recovery in the solar market.

OPERATOR - (00:02:14)

Hello and welcome to the Daqo New Energy Third Quarter 2025 Results Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing * then 0 on your teleph1 keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press * then 1 on your teleph1 keypad. To withdraw your question, please press * then 2. Please note this event is being recorded. I would now like to turn the conference over to Jesse Zhao, Investor Relations Director. Please go ahead.

Jesse Zhao - Investor Relations Director - (00:02:57)

Hello everyone. I'm Jesse Zhao, the Investor Relations Director of Stockholm New Energy. Thank you for joining our conference call today. Daqo New Energy just issued its financial results for the third quarter of 2025, which can be found on our website at www.dqSolar.com. today, attending the conference the conference call, we have our Deputy CEO, Ms. Anita Hsu, our CFO, Ms. Mingyang and myself. Our Chairman and CEO, Mrs. Xiang Xu is on a business trip now, so Ms. Anita Xu will deliver our management remarks on behalf of Mr. Xu. Today's call will begin with an update from Ms. Zhu. on market conditions and company operations and then Ms. Ming Yang will discuss the company's financial performance for the quarter. After that, we will open the floor to Q and A from the audience. Before we begin with the formal remarks, I would like to remind you that certain statements on today's call, including expected future operational and financial performance and industrial growth, are forward looking statements that are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward looking statement. Further information regarding these and other risks is included in the reports or documents we have filed with or furnished to the securities and Exchange Commission. These statements only reflect our current and preliminary view as of today and may be subject to change. Our ability to achieve these projections is subject to risks and uncertainties. All information provided in today's call is as of today and we undertake no duty to update such information except as required under applicable rule. Also during the call, we will occasionally reference monetary amounts in US Dollar terms. Please keep in mind that our functional currency is the Chinese RMB. We offer these translations into US Dollars solely for the convenience of the audience. Now I will turn the call to our Deputy CEO, Ms. Zhu.. Please go ahead.

Anita Hsu - Deputy CEO - (00:05:25)

Hello everyone, this is Anita. I'll now deliver our management remarks on behalf of Mr. Xi on this. So with the recovery of market prices across the solar PV value chain the third quarter of 2025. We believe the industry is gradually recovering from its cyclical downturn. In particular, the polysilicon sector, reached an inflection point during the quarter with prices rebounding significantly as a result. We're pleased to report that for the third quarter, Third quarter Daqo New Energy recorded positive EBITDA of 45.8 million USD as well as adjusted net income of 3.7 million USDs. Moreover, our strong balance sheet was further reinforced. As of September 30, 2025, the Company had cash balance of US$552 million, short term investments of $431 million, bank notes receivables balance of $157 million and total fixed term bank deposit balance of USD 1.1 billion. In total, our bank deposit and financial investment assets readily convertible into cash IF needed at USD 2.21 billion, representing an increase of USD 148 million compared to the end of the second quarter. Our solid financial foundation provides us with confidence and strategic flexibility to navigate the ongoing market recovery and capture long term opportunities. Operationally, the Company implemented proactive measures to counteract the continued market oversupply, maintaining a nameplate capacity utilization rate of 40%. Total polysilicon production for the quarter was 30,600 metric ton, slightly above our guidance range of 27 to 30,000 metric tons. We also capitalized on favorable pricing conditions to sell not only our current quarter's output but also significant portion of our existing inventory, leading to a sharp rising of sales volume to 42,406 metric ton from 18,126 metric ton in the previous quarter. The strong increase in sales volume reflects both our customers confidence in Daqo's product quality and their continued preference for our product in the new pricing environment. As a result, our sales volume far exceeded production, bringing our inventory down to a healthy level. Another positive note, production cost declined significantly during the third quarter, extending our ongoing cost reduction trend. Total production costs declined by 12% to 6.38 USDs per kilogram in Q3 2025 from 7.26 USD per kilogram in the second quarter of 2025. Total EIDL facility related costs, primarily non cash depreciation expenses, also fell to 1.18 in Q3 from 1.38 in Q2 driven by higher production levels. In particular, our cash cost decreased by 11% from 5.12 per kg in Q2 to 4.54 USD per kg in Q3, the lowest in the company's history Cash cost includes approximately 0.16 USD per kilogram of idle facility maintenance related cost. In light of the current market conditions, we expect our total polysilicon production volume in the first quarter of 2025 to be approximately 39,500 metric tons to 42,500 metric tons. As a result, we anticipate our full year 2025 production volume to be in the range of 121 to 124,000 metric tons. At the industry level, according to industry statistics, monthly supply of polysilicon in Q3 remain in the range of approximately 100,000 to 130,000 metric tons. On September 24, President Xi announced China's new 2035 environmental target at the UN Climate Summit. These targets include increasing the share of non fossil fuels in total energy consumption to over 30% and expanding the installed capacity of wind and solar power to over six times the 2020 level, aiming to reach an accumulative capacity to to 3,600 gigawatts by 2035. The official announcement re informed China's ambitious strategy to transition toward a new low carbon energy structure with solar PV playing a pivotal role in the process. Entering the third quarter, China's anti evolution initiative to restrict low price competition in the polysilicon sector continue to impact the industry market. Expectations of consolidation tighter supply have improved overall industry fundamentals. In particular, on August 19, the Ministry of Industry and Information Technology, the Central Ministry of Social Work, the ndrc, the State Council, State Owned Assets Administration Commission, the General Administration of Market Supervision and the National Energy Administration jointly held a symposium on the photovoltaic industry. The meeting emphasized the need to strengthen industrial regulation, curb disorderly low price competition, standardize product quality and promote industry self discipline. On September 16, the Standardization Administration of China released a draft of a new mandatory national standard setting energy consumption limits per unit of poly silicone production. Once implemented, poly manufacturers with unit energy consumption higher than 6.4kg must implement corrective improvements within a specified period. Those failing to comply or meet the entry threshold after rectification will be ordered to cease operations. According to China's Silicon Industry Association, China's effective capacity of polysilicon production is expected to climb to 2.4 million metric ton per year, a decrease of 16.4% from the end of 2024 and of 31.4% from total installed production capacity. We expect that implementation of this new energy consumption standard will substantially ease the issue of industry overcapacity as a result of these more fossil measures. Pulsar comprised rolled sharply to 45 to 49 RMB per kg in July from 32 to 35 RMB per kg in June and further climbed to 49 to 55 RMB per kg at the end of the quarter. The solar PV industry continues to demonstrate strong long term growth prospects in the medium term. We believe that the combination of industry self discipline and government NT and volution regulations will help foster a healthier and more sustainable industry in the long run. As one of the most cost adequate sectors effective and sustainable energy sources globally, solar power is expected to remain a key driver of the global energy transition and sustainable development. Looking ahead, Daco New Energy is well positioned to capture the long term growth in the global solar PV market and further strengthen its competitive edge by enhancing its higher efficiency N type technology and optimizing its cost structure through this digital transformation and AI adoption. As one of the world's lowest cost producers of the highest quality and type products and with a strong balance sheet and no bank loan, we're confident in our ability to capitalize on the market recovery and emerge as an industry leader well positioned to seize future growth opportunities. So now I'll turn the call to our CFO, Mr. Min Ye who will discuss the company's financial performance for the quarter min. Please go ahead.

Ming Yang - Chief Financial Officer - (00:13:35)

Thank you Anita and hello everyone, this is Ming yang, CFO of Daqo New Energy. We appreciate you joining our earnings conference call today. I will now go over the company's third quarter 2025 financial performance. Revenues were 244.6 million compared to 75.2 million in the second quarter of 2025 and 198.5 million in the third quarter of 2024. The increasing revenue compared to second quarter of 2025 was primarily due to an increase in both sales volume and average selling price. Gross profit was 9.7 million compared to gross loss of 81 million in the second quarter of 2025 and gross loss of 60.6 million in the third quarter of 2024. Gross margin was 3.9% compared to negative 108% in the second quarter of 2025 and negative 30% in the third quarter of 2024. The increase in gross margin compared to the second quarter of 2025 was primarily due to the increase in the average selling prices of polysilicon, a decrease in our production cost as well as write off of provision for inventory impairment. Selling general and Administrative expenses were 32.3 million compared to $32.1 million in the second quarter of 2025 and $37.7 million in the third quarter of 2024. SG&A expenses during the third quarter included $18.6 million in non cash share based compensation costs related to the company share incentive Plan compared to $18.6 million in the second quarter of 2025. R&D expenses were $0.6 million compared to 0.8 million in the second quarter of 2025 and $0.8 million in the third quarter of 2024. R&D expenses vary from period to period reflect R and D activities that take place during the quarter as a result of the foregoing. Loss from operations was 20.3 million compared to 115 million in the second quarter of 2025 and $98 million in the third quarter of 2020 24. Operating margin was negative 8% compared to negative 153% in the second quarter of 2025 and negative 49% in the third quarter of 2024. Net loss attributable to Dr. Neo Energy shareholders was 14.9 million compared to 76.5 million in the second quarter 2025 and 60.7 million in the third quarter of 2024. Loss per basic ADS was $0.22 compared to $1.14 in the same quarter of 2025 and $0.92 in the third quarter of 2024. Adjusted net income attributable to DAKA New Energy shareholders excluding non cash share based Compensation costs was 3.7 million compared to adjusted net loss attributable to DA New Energy shareholders of $57.9 million in the second quarter of 2025 and $39.4 million in the third quarter of 2024. Adjusted Earnings Per Basic ADS was $0.05 per share compared to adjusted loss per basic ADS of $0.86 in the second quarter of 2025 and $0.59 in the third quarter of 2024. EBITDA was 45.8 million compared to negative $48 million in the second quarter of 2025 and negative 34 million in the third quarter of 2024. EBITDA margin was 18.7% compared to negative 64% in the second quarter of 2025 & negative 17% in the third quarter of 2024. Now on the company's financial condition, as of September 30, 2025, the company had 551.6 million in cash, cash equivalents and restricted cash compared to 598.6 million as of June 30th, 2025 and 853 million as of September 30th, 2024, and as of September 30th, 2025, short term investment was 431 million, compared to 418.8 million as of June 30th, 2025 and 245 million as of September 30th, 1 25. As of September 30th, 2025, bank notes receivable balance was 157 million, compared to 49 million as of June 30th, 2022 and 83 million dollars as of September 30th, 2024. No receivable balance represent banknotes with maturity within six months and as of September 30th, 2022, the balance of fixed term deposits will within one year was 1.03 billion, compared to 960.7 million dollars as of June 30th, 2025 & 1.2 billion as of September 30th, 2024. Now on the company's cash flows for the nine months ended September 30th, 2025, net cash used in operating activities was 50 million, compared to 356 million in the same period of 2024. And for the nine months ended September 30, 2025, net cash used in investing activity was 448.9 million, compared to 1.7 billion dollars in the same period of 2024. The net cash used in investing activities in 2025 includes $120.3 million for the purchase of Piping A Nice and 328.6 million in net purchase of short term investments and fixed term deposits. For the nine months ended September 2025, net cash using financing activities was 32,000, compared to $48.5 million in the same period of last year. And that concludes our prepared remarks. We will now open the call to Q and A from the audience. Operator.

OPERATOR - (00:19:51)

Please begin we will now begin the question and answer session. To ask a question, you may press Star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Philip Shen with Roth Capital Partners. Please go ahead.

Philip Shen - Equity Analyst - (00:20:37)

Hi everyone. Thank you for taking my questions. First one is on the gross margins. Looks like you guys had positive gross margins for the first time in a while. Maybe supported by the impairment and so wanted to get a feel for what kind of could you see positive gross margins in Q3 and Q4 and how would you expect that to trend in 2026? Thanks.

Ming Yang - Chief Financial Officer - (00:21:07)

Hello Phil, this is Ming Yang, the CFO. Thanks for your question. And we're very pleased to report that we were able to record positive gross margin for the third quarter. A lot of it is driven by the increase in selling prices, the quite significant increase that we saw in Q3 and as well as a significant reduction in our per unit cost and also helped by some of the benefits from an earlier write down of inventory. But we do expect that our Q4 gross margin should be positive as well. I think based on our current expectation for trends for both ASP as well as for our costs, continued cost reduction as well.

Philip Shen - Equity Analyst - (00:22:09)

Great. Thanks Bing. And so maybe Q3 was negative, Q4 flips positive, and then through 26, do you see potential for the year to be positive as well?

Ming Yang - Chief Financial Officer - (00:22:23)

As of today, yes.

Philip Shen - Equity Analyst - (00:22:25)

Okay, great. Shifting over to some bigger picture questions, last week we hosted a couple of webinars, one with Clean Energy Associates and the other one with the CRU Group, the commodities research unit that acquired Exawatt based out of London. In any case, they were talking about a lot of the overcapacity efforts and the anti involution efforts in China for polysilicon and downstream. But they were saying that even after the overcapacity in the polysilicon segment, there could still be instead of maybe 3x overcapacity for poly, now just 2x. So still substantial overcapacity. How do you guys continue to work to better match capacity with the lower levels of demand? What other actions can you and the industry take? And then how much capacity might you and the industry acquire over time and then shut down? Thanks.

Ming Yang - Chief Financial Officer - (00:23:34)

Thank you, Phil. So regarding the overall capacity, first of all, I think it's correct that even with the exit of some capacity, there would still be a relative oversupply compared to demand. However, I think how it's going to work is that although you still have more supply in terms of the nameplate capacity, they'll try to balance with demand in terms of the production volume, meaning none of the companies will be operating at full utilization rate until demand climbs up again. I think that's what's going to happen at least in the short term to the midterm.

Philip Shen - Equity Analyst - (00:24:24)

Okay, got it. Thank you. And do we or you guys expect any additional actions from the government or from the industry that maybe we're not all aware of that could also serve as positive catalyst in addition to the lower utilization rate. What else can you and the industry and the government do? Thanks.

Ming Yang - Chief Financial Officer - (00:24:52)

I think the overall conversation on the consolidation in terms of the spvi, I bet that all investors have seen a lot of news around that and I would say the anti evolution initiatives are still ongoing and conversations. All the companies are taking the initiative to participate and are actively engaging in these conversations so that we would see a healthier and more sustainable industry going forward. And I think that's the key focus right now, at least in the near term. And I would say aside from the anti-involution in terms of the consolidation, the other one that might be worthy to mention is the draft on the new mandatory national standard. I think that would work as another positive catalyst. Like while the consolidation conversation is still ongoing, the government is also pushing out the national standard on energy consumption and that would serve as a hard cutoff point for some of the industries, for some of the companies in the industry.

Philip Shen - Equity Analyst - (00:26:10)

Okay, great. Thank you for the insight, Anita. I'll pass it on.

OPERATOR - (00:26:17)

The next question comes from Alan Lau with Jeffries. Please go ahead.

Alan Lau - Equity Analyst - (00:26:24)

Thanks a lot for taking my question.

Ming Yang - Chief Financial Officer - (00:26:25)

Anytime.

Alan Lau - Equity Analyst - (00:26:27)

First question, would like to follow up on Phil's question on the self discipline in the industry. Would like to know is there a when do you expect the whole consolidation agreement among the remaining players will be signed and what exactly in terms of mechanisms to make sure the players obeying the quota or volumes that are agreed upon by the parties? Is there any performance bond or some kind of mechanisms like that?

Ming Yang - Chief Financial Officer - (00:27:04)

Thank you, Alan. So of course like I just mentioned, the conversations are still ongoing so we're waiting for more details before we can reveal it to the investors. But I would say we're pushing toward meeting or having a consensus in terms of the consolidation and it's difficult for us to say exactly when that's going to turn out or when we can see an agreement sign. But of course from our perspective, the sooner the better. Right. So that of course we've seen a price recovery in the third quarter already, but suppose we can get a consolidation done soon. We might see further uptake in the prices. Yeah, but of course because there are many parties involved in working out the consolidation, including the government entities and the companies in the industry. So it's taking some time. But of course we are working very diligently and working very hard toward having a consensus.

Alan Lau - Equity Analyst - (00:28:15)

Thank you. So my second question is to follow up on the company specific matters. So have noticed that Actually the average selling price achieved by the company is quite high relative to peers. Would like to know what's your expectation on the prices, especially if the consolidation initiative is implemented. And then secondly also look at from the cost perspective, both the production cost and the cash cost went down. So how do you see the trend in 4Q or 26 as well?

Ming Yang - Chief Financial Officer - (00:29:10)

Okay, I'll adjust the cost trend first and then Anita will talk about especially what our expectations after the consolidation initiative. So we did see a significant reduction in costs for this quarter and it's actually better than what we had originally anticipated. So costs went down about 12% quarter over quarter. Overall cost and especially cash costs declined by more than 11% quarter over quarter. And a significant portion of that is actually the reduction in energy usage around efficiency. So we did a lot of efforts in terms of including our process and for further optimization. And I would say that a lot of those efforts actually began to materialize, especially in the third quarter. And as well as the usage of silicon powder in terms of per unit reduction and also this quarter we benefited additionally from a decline in slick metal pricing and also because of the increase in production. So this quarter production is more than 10% higher than the previous quarter. So there's also per unit reduction in terms of relatively fixed costs, for example labor benefits. So the combination of these helped us to reduce our cost. And we actually expect, currently expect Q4 cost to continue to decline compared to Q3, I think in the low single digit range. So we should continue to see a low single digit percentage range. So we should continue to to see benefit from our cost reduction efforts. And in terms of the ASPs. So first of all, for the fourth quarter, as we're still undergoing the conversations to make the consolidation happen, we think the price change will remain relatively stable at the current level because prices have already picked up in the third quarter near the end of the quarter, it's already in a range of 49 to 55 RMB per kg. So we think that's going to sustain in the fourth quarter. However, after the consolidation is completed. Of course the consolidation will be done in phases, so it's more likely going to be capacities exiting in different phases. And we do, we should expect prices to tick up after the consolidation happens to rise around 60 RMB per kg burst and perhaps taking up further as we see more nameplate capacity exiting the industry. So perhaps in a range of 60 to 80 as we foresee it.

Alan Lau - Equity Analyst - (00:32:53)

Thank you. That's just very clear. I think my last question is on the buyback because the company have announced the buyback program a couple of months back, we'd like to know the progress of buyback since then. And also combining the consideration of potential CapEx of acquisition spending, we'd like to know what is the pace of buyback and be decided by the company.

Ming Yang - Chief Financial Officer - (00:33:25)

Thank you, Alan. So in terms of the share repurchase, after we announced the program, share prices actually increased to the highest to US$31 which was about 35% higher than what was near the end of August. And because we wanted to purchase more shares. Right. So we were waiting and monitoring the market closely. And another thing is that we were waiting to see what would be the initial investment for the consolidation. Right. So suppose the initial investment is around 30 billion RMB versus like 10 billion RMB. It will mean a huge difference to what we have to put in the consolidation. Hence we're still waiting to see how that's going to unfold before we can confidently start the share repurchase again.

Alan Lau - Equity Analyst - (00:34:32)

Okay, so assume the consolidation asset will materialize in 4Q then probably there will be more clarity on the amount that EQ has to spend in that platform. And then probably the company will start buyback probably in 4Q next year.

Ming Yang - Chief Financial Officer - (00:34:54)

Right.

Alan Lau - Equity Analyst - (00:34:54)

Is it fair expectations?

Ming Yang - Chief Financial Officer - (00:35:00)

Sorry, what's the question?

Alan Lau - Equity Analyst - (00:35:03)

So. It'S on the timing. So if it the consolidation effort is going to be in 4Q or first Q, then DQ will start buying back right after that. So which is a couple of months.

Ming Yang - Chief Financial Officer - (00:35:26)

In terms of the timing of the share repurchase? Yes, I think that after we have a more clear picture of what the consolidation looks like, we can start the share repurchase.

Alan Lau - Equity Analyst - (00:35:40)

Thank you, that's very clear. I'll pass on.

Ming Yang - Chief Financial Officer - (00:35:41)

Thanks a lot. Yeah, thank you Alan.

OPERATOR - (00:35:47)

The next question comes from what? Wong with Goldman Sachs. Please go ahead.

Wong - (00:35:55)

Yes, thanks for taking the question. Nita and Yang. So my first question is regarding to the production cost. So Ming, you just mentioned the lower cash cost is mainly due to our capacity upgrade. So therefore less energy usage now. So I was wondering what's our unit electricity consumption per kg of the polysilicon right now?

Ming Yang - Chief Financial Officer - (00:36:25)

Okay, so this is actually different for our two facilities but generally it's in the range of 52 to 55 kilowatt hours per kilogram currently.

Wong - (00:36:40)

Sure, that's clear. And my second question is regarding to the production. So we raise our production plan by 30% plus in 4Q from Q level. So the direction is really going against with our peers. So I was wondering how we fit our production fit into the current Industry wide production quota narratives and also what drives our more positive Demand outlook into 4Q. I think that is traditionally a traditional weak demand season.

Ming Yang - Chief Financial Officer - (00:37:26)

Thank you Mohan. So I would say that we were among the first to start lowering our utilization rate to around 30% initially.

Wong - (00:37:36)

Right.

Ming Yang - Chief Financial Officer - (00:37:37)

So I would say we have been very aggressive in doing that. However, as prices have recovered in the third quarter, we do foresee a more optimistic outlook going forward. With the consolidation and also the proposal on energy consumption, we do see a direction to curb the vicious competition in the industry. Right. So we are more confident in the future outlook and we have weighed our own current plan as well as in terms of the cost. If we increase our production volume now, we can further reduce our production costs. So I think that's the logic behind raising our production plan in the fourth quarter.

Wong - (00:38:29)

So can we use the over 50% utilization as the guidance of the production plan in 2026 and going forward?

Ming Yang - Chief Financial Officer - (00:38:57)

Yeah, I think that will be a reasonable assumption for 2026. Sure.

Wong - (00:39:03)

That's very clear. That's all my question. I will pass the question to the next investors. Thanks.

Ming Yang - Chief Financial Officer - (00:39:10)

Okay, thank you.

Wong - (00:39:11)

Moore.

OPERATOR - (00:39:13)

The next question comes from Gordon Johnson with GLJ Research. Please go ahead.

Gordon Johnson - Equity Analyst - (00:39:21)

Hey guys, thanks for taking the question. So just I guess number one, focusing on your current production costs. 638, I'm looking at what PV Insights is reporting for polysilicon prices in Q4 so far. 6.53. That would suggest a margin of 2%. But when I look at the Guangzhou Stock, I'm sorry futures exchange, it has polysilicon prices right now, futures at like, you know, around 840. So when we look at your Q4 gross margin, are we looking at a margin similar to what you reported in the 2% range or something higher? And then I have a follow up. Thanks.

Ming Yang - Chief Financial Officer - (00:40:06)

I think for the poly futures market you have to subtract by a 13% value-added tax. I think once you subtract, I think you get maybe a ballpark mid to high single digit kind of gross margin, something like that. So let me just say just kind of a range of gross margins, maybe low to mid single digit range of gross margins. I think based on the current market environment.

Gordon Johnson - Equity Analyst - (00:40:44)

Okay, that's helpful. And then are you, you guys mentioned that you sold a lot out of inventory. Is that done or will you continue that? And then my last question is given the new five year plan that's coming through in China, what is your expectation for installations, solar installations in general in China in 2026 versus 2025. Thanks again for the questions.

Ming Yang - Chief Financial Officer - (00:41:20)

Okay, so I think in terms of. Sales, I think it is still a little bit early. Right. So we're at the end of October. There's two more months to go by. I think based on our latest customer orders and order trends at this point we do anticipate that the overall sales volume for the quarter, it should be similar to our expected production volume. I think that's the baseline for our sales. But we do also look for opportunities to sell down additional inventory. So that's what the current market condition looks like.

Gordon Johnson - Equity Analyst - (00:42:12)

Okay. And then on total installs in China for next year versus this year. Thanks.

Ming Yang - Chief Financial Officer - (00:42:19)

And for installation, we think it will be relatively stable or low single digit compared to this year. Because this year the forecast is in the range of around, I would say 220 to 250 gigawatts for additional installations in China. So I think for next year would be more likely in a range and perhaps for growth to around, I would say 270 to 280 gigawatts.

Gordon Johnson - Equity Analyst - (00:42:55)

Thank you. Great. Thanks Gordon.

OPERATOR - (00:43:03)

This concludes our question and answer session. I would like to turn the conference back over to Jesse Zhao for any closing remarks.

Jesse Zhao - Investor Relations Director - (00:43:13)

Thank you everyone again for participating in today's conference call. Should you have any further questions, please don't hesitate to contact us. Thank you and have an awesome day. Goodbye.

OPERATOR - (00:43:25)

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.