Genetron (GTH) 30 Nov 212021 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Third Quarter of 2021 Genetron Health Earnings Conference Call. At this time, all participants are in listen-only mode. And after the speakers presentation, there'll be a question and answer session. [Operator Instructions]. that is advised recorded. be please today's being conference And [Operator Instructions]. like I Ms. conference to over now to today, the for turn would speaker your first Luk. Hoki Thank you. Please go ahead.

third Call. Hello, XXXX and is company's was Genetron welcome the everyone, today Health on website. and issued earlier earnings company's The IR conference available earnings release to quarter

US Reform During this events be Safe results. are of statements These will provisions and facts, are under Harbor forward-looking not the Litigation and statements. forward-looking some Genetron including call, making the Private of Statements XXXX. statements the expectations are Act Health's company future statements Securities made historical regarding beliefs about

measures of non-IFRS earlier All Forward-looking except date today. call, not other statements included any filings undertake can And in the the this recent uncertainties. Co-Founder Mr. issued release Further inherent any SEC. Sizhen to call the earnings the is updates forward-looking update be statements and me Health's call. under catalysts. does law. risks discuss provided of as required information information regarding CEO of Genetron today the found is Wang, to any to risks measures upcoming on these Health related With Genetron information discussed and management Allow introduce these respect Genetron, today. reconciliation will in company's to today's applicable and team the business as obligation involve our during with and

today's financial well Evan third related the Officer, unaudited release, our Medical to Hu, Our Chief in for provide results XXXX. as screening discuss Mr. Yun-Fu highlights as outlined outlook quarter Xu, early will CFO, will our program. the

the questions. management's remarks, to Following call we'll up prepared open

go questions. call Genetron Yan, Chief Wang, that the session, the of said, Officer, would answer Health. Dr. Q&A CEO like please Officer, Yuchen also now over I to be and Chief Sizhen ahead. to Scientific Dr. the turn our and Sizhen, will Jiao to During With our available Technology Co-Founder Hai Mr.

you, for I good quarter evening, X. everyone. presentation foremost to tests Investor Thank you conference and call. and continued like Hoki. the would precision our direct earnings Thank website third the you our on earnings supplemental joining oncology provider to morning Good as to on XXXX third services we of our expand In in China. foundation tools, begin quarter, and Relations slide the

Our comprehensive treatment customers needs as of our and management, diagnosis to from screening, portfolio the covers early entire spectrum address patient enabling as challenges monitoring, cancer well recommendations.

line Turning in with the spite results, our X. to delivered revenue of on RMB million. XXX.X impact strong XX.X% of year-over-year COVID top In slide quarter, on we business the

Our IVD The business HCCscreen. driven by grew LDT assay. thanks at to X our Lung early of the over SX instruments screening increased over uptake XX%, also NGS biopsy XX%, business product, primarily liquid continued our

XX.X% gross oncology margin the the LDT IVD last improvements with Operationally, portfolio. notable third saw since also quarter XX% milestones business compared in strengthen We both thanks further year, quarter margin we in and to achieved to at significant have to our third precision lines. improvement

that you early Let We're early NMPA trial our pleased initiated registrational me HCC. screening in for with with assay share have we start segment. our off now to a detection

we cover Let product. in multiomics, add pipeline that key best considerations, strategy addition a would me call. on our have careful strategy. to market assay, will to on to on PCR be the present share accelerate and more structure broadly market also penetration This Dr. After allow later NGS-based registrational the updated assay will the this the more with HCCscreen, this approach Hu test. a decided potentially based to details our us

Turning to slide X.

NGS-based achievements a co-development a significant very their proprietary China agreement personalized is MRD a highlights China. test recently. have Capsule R&D with exciting and data Mutation we our side, night, efforts multi-year have AstraZeneca MRD On for by Last in value major for the resulted Genetron tumor the platform. milestone solid as solid generated the the our MRD collaboration for This of in tumors announced

with accelerate oversee timeline will With product together established the will will assay. jointly this support, assays validate further China. partnership capital these recurrence cancer work invest monitoring development also importantly, joint expect for develop partnership, this to the for development. AZ More the and in companies we and and committee be to A to

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and many China but assay development. revenues their We capability high-performing may the a for are solid to have Currently, this the clinical AZ's valuable accumulated trials capability position after experience clinical collaboration. will in optimistic Genetron's the that in significantly about optimistic are only process. in of market use in develop tumor China co-developed handful MRD in only optimization enhance not a and, leading product MRD companies of of We us, our position competitive China in particular, assay. are the product our will there oncology represent be Also, will

of is to data forward and personalized exploring we based Beyond study technology this MRD Mutation approach. The technology's patients high in on sensitivity assay, tumor use in through MRD an lavage also peritoneal X.XXX% prediction fluid. DNA Capsule analysis developed dissemination published a proceed. updates our Oncology, to the in gastric to and programs excellent the Hematology of are This regards We of look a informed of Journal sharing recurrence validation precise journal. more MRD been release, cancer detect these to detect recently, our has tumor tumor-naïve peritoneal fluids. MRD assays of In internally, has MRD as exciting shown impact ability the

we to data, half XXXX. continue MRD anticipate publications blood-based first the tumor solid for by As of

innovative to with a target robust we co-market solid for sales force partnership leverage partner co-promote others. exclusive recently, in and assay to that providing roughly and has sales in Fosun valuable clinics strong regions tumors with will clinics, announced Fosun hematologic-focused designated an opportunity force blood in of and across China. their malignancies, the X,XXX us, representatives a Pharma hospitals sizeable relationships be For Seq-MRD drugs KOLs distributors. and to hematologic lymphoid the and sell and hospitals, They cancer,

enables with multiple We're Seq-MRD of enable achieve samples good has CLL to with China. and together efficiency China, continued and tested high of automated our melanoma the fully MM operational been The has trials. Seq-MRD the with with Seq-MRD innovative been proprietary cancers for an date, support technology, a in Our feature, believe for with of MRD NGS-based recently NMPA optimized clinical traditional library uniformity, testing detection Center This single testing fast Seq-MRD To throughput guidelines represents and and issued when thousands ALL, sequencing pleased DNA in times Evaluation in turnaround One-Step to simple in accuracy, for assay methods. competitive gene MRD reaction. our Drug blood with in market. option high Seq process construction PCR which our second cost bioinformatics compared solutions, finish and

slide X. to Turning

an Moving seven have on third quarter, now partners, to signed increasing business. we biopharma our discuss additional service In partners. to total the biopharma XX

and trials lab throughout as have CLIA Maryland is increasing the a up products, segment. with targeted stronger we growth In partnership are key to and a testing drive the our CDx sector, announced trend cross With In Chinese FusionScan, demand oncology strong running, US, NMPA's CDx a pipeline, NeoGenomics border us the is becoming for from solid strategic We to partnerships platform with continue booming providing in optimistic to and about Onco our form to resulting on immunotherapies. we genomic for And global and services opportunity PanScan, including drug biotech Seq-MRD, development. China, development. research others. of a focus this business innovative recently, see offer in we

trials. global groups providers research As for need this harmonized the technology outlined global select China-focused or will arm and partners in trials, translational China clinical pharmaceutical a platform for that agreement, provide

in US, seasoned trial team CLIA-certified service will development. assets global to a enable pharmaceutical These support APJ partners diagnostic the partners business Additionally, companion Combined, accredit drug hundreds our trials laboratories, of and the and regions. synchronize will NeoGenomics and and team. and two of the have CAP clinical XX clinical scientists trials EMEA collective drug

details trial we color will provide screening I now registrational quarter initiate on the to and the the slide Dr. our registrational first X, we Yun-Fu? and to to the with more early of major have on achieved large tissue-based for mutation completed test milestone detection Lastly, our for PanScan typing in November China, Mark have a trial enrollment of Hu turn we Onco CE XXXX. strategy. kit. call In HCC in panel our receipt plan

Thank you, Sizhen.

Let's X. go slide to

liver advanced earlier, Sizhen cancer assays. program with detection mentioned have two As we early our

in have introducing the In addition multiomics discussed multi-marker PCR-based the we to HCCscreen, past, NGS-based we're a assay, named HCCscan. assay methylation that

let's last A of assay that the to program major wise us policy which approach. developments discuss be in First, would PCR-based year emerging couple HCCscan. to decide led a

COVID-XX was government hospitals market. and further the and in After for nucleic at and in testing accelerated has and testing, many the readily capability State outbreak, to workflows hospital build spending. The a hospitals available level acid China, the has PCR infrastructure first development clinics. more above required presence establish In established the county Council which PCR

months few in DNA The pricing just high potentially performing insurance Based to and the establishing coverage related included around XXX on ago, benchmark for was X,XXX a of and testing. genetic insurance [indiscernible] of tests around methylation-based our A programs, methylation product. that a is for and PCR-based RMB coverage. adding NGS-based some second development development, expand this the assay company RMB Beijing testing other provisional was government of would

selfie has In lower country. addition, market cost could a significantly affordability a on the product optimal market Offering population, solution. can the also in self-pay provide unique patients where across self-pay with China vary tier fragmented PCR a

patient As alone evaluating HCCscan selected sites and our for nine such, have are have clinical we trial, just enrollment plus HCCscan. started a in registrational this ultrasound care, HCCscan trial versus The In similar target AFP, end XXXX. trial is standard patients, of expected the as versus with of X,XXX a by size ultrasound which the HCCscreen. cohort to a plus is complete of we

As trial progressed further work. HCCscreen committed our continue to we far and have be trial, this as with to preparation NGS-based

HCCscreen. of down algorithm completed We have and and assay selected locked our have platform our optimization

run NGS unchanged, to place In trial to taking sites to X,XXX ongoing five more AFP. addition, plus be efficient these four we narrow head of the and our study. patients ultrasound and of the to be to PCR plan are The we nine sites, that select versus which suitable believe comparing HCCscreen of with down to at will trial head design NGS trial remains

XXXX, of as and enrollment efficiently. trial next discussed broad past. central to in patient a to complete expect confident new offer in increase the models HCCscreen, accessibility start the the we the with to deploy We both are we for lab strategy and to HCCscan be that end hospital the Overall, market penetrate and and more months we by can few

to both HCCscan We for have NMPA with potential and communicated HCCscreen our design approval and project trial plans XXXX. NMPA continued in

other for have preliminary control As types, case gathered we in early screening data. cancer CRC

Mutation to and multiomics The controls plan technology, profiling assay, XX%. release to methylation, and XXXX. XXX These Based Moving of than XX% on with sometime copy similar size. details of cohort cohort this profiling and are developed number of we Capsule independent an retrospective sensitivity trained of greater XXX cohort provided slide have specificity The a variations full encouraging validated cases and algorithm detection results biomarkers from a X. was cFDNA. including in through number in a publication blood-based we assay

were slide recently like I Chinese shown would peer-reviewed including on HCCscreen Journal articles This published XX, journal results to HCCscreen. highlight as two of Finally, in on Haematology. the

AFP that First, screening expert from March HCC. value better for concluded assay identify ultrasound X,XXX year that diagnostic data reported than and patients we the stage plus HIT consensus this early showed in study performance

community This on in turn We're details our multiomics early publication The article influence liver a second among approach reviewed to viewed innovative now physicians. quarter to and the journal financials. specificity Evan will that for prestigious excited and call provide HCCscreen practice Evan? that leading Mr. expert China were AFP the monitoring. having experts. significant disease well and received Xu, clinical could more by CFO, offer as sensitivity is strategy and in is suggests third than Medical prospective a study our higher on our the results industry I

diagnostic total Thank of a quarter, revenue numbers increased made update quarter RMB XXX Diagnosis XX last basis. RMB increased million in by LDT third the and and financial year. RMB XX% revenue during you, note provide the In million to XXX XXX on period XX increased during in by tests reporting quarter. included million Please an XXX quarter are comparisons our quarter, the in year services from sales LDT performance I from by revenue quarter will RMB similar this year. on approximately XXXX. to slide year-over-year totaled the provided from XX.X% that the units, XX. million that tests. in Yun-Fu. all a our third of on RMB Starting are XX% third ago. monitoring year In in sold the the sales early X,XXX RMB RMB this all in to this same of LDT screening to prior terms

These the collaborations. our market, include JD Health, cancer work be continued pleased uptake with [indiscernible]. we with adoption from doing to are liver the support the screening sales our We with in and continue growing

slide RMB the The mainly XX IVD the sequencer quarter in RMB increase Moving third XX% in was sales by million to by XXXX increased XX to well kits. prior as revenue of from XX, the as million driven IVD year.

the hospital XX ones. including of contracts, third IVD end had of of quarter, As a total we the XX

be margin services Revenue compared Biopharma X this additional focus XX biopharma the several we coming drive pipeline generated million by year. is contracts in This services prior sales since IVD quarters. the services higher this on development million continue the Our base in signed reagent to as from installation October. overall An services. strong prior driven RMB decline have grow we revenue to in continues was to quarter to decreased our as from expected in on quarter in to RMB sequencing year. and expanding continued mainly to

LDT in XX, Moving RMB ago. in XX% to XX XX profit to quarter by per slide the quarter year, year. margins compared RMB million increased XX% year. Gross was this segment million to the increased the the quarter higher improved in XX% RMB million to cost XXX IVD to XX in for prior lines. to of compared in business from XX% the gross revenue a third and for Gross by to XXXX LDT million gross prior to XX% compared margin year XX% particular, margin both thanks In our this for RMB

lung RMB Research more million headcount, for to with material XX% were manufacture RMB in to XX% our as year. Administrative to prior sales our well Seq Selling XXXX. quarter Operating in expand prior as XX% in increases quarter increased screening on XX% our year. the increasing RMB to mainly XX% to and this year. higher slide expenses. to sources, this RMB million we're year. year, as expenses early same For this by to in teams. our was and due XX% prior quarter expenses cancer XX was fees resulted the XX% expenses core IVD of XX% quarter to increased from as driven out are period prior and RMB well RMB The in technology primarily and ratio from margins. from increased to increased innovation in in to IT as million assay the broken segment, to compared XX expenses expenses trial professional our The ratio by in headcount raw follows. in enjoy RMB increased by the the prior able from businesses, million gross The the from XX increases and in in quarter development million R&D margin prior higher RMB expenses headcount ratio product by development from Selling this versus in and of efforts, decreased One-Step capability to XXX this thanks XX% continued in XXX including Operating quarter the increase XX are XX% related year. were expenses key same own XX% clinical Operating the period this XXXX. the XX% XX activities. by to expenses, minutes from million X-gene healthy expenses increased million XX XX R&D

of for RMB third compared XX. XXXX. XXX quarter the compared preferred quarter year loss figures compared compared to operating was net RMB quarter X.XX helpful loss underlying share for was to the basic of Net We're result, be slide of for Non-IFRS loss with management per would equivalent per million last period also million to figures RMB XXXX. RMB for the loss of excludes other show net these loss share XXXX. X.XX RMB the trends value for Non-IFRS XXX providing financial for with to as the a non-IFRS was ordinary for share-based of RMB of to to XX the period X.XX expenses, and share. compared XXX X.X was our RMB per Basic million prior Non-IFRS same third basic compensation quarter on XX ordinary loss net this RMB RMB loss is million believes loss of the share ordinary XX change period million loss XXXX third for year. million the third for RMB fair the Diluted loss instruments per same As was rights. quarter business. XXXX

strong cash and XXXX. and XX, of or financial current equivalents, X at $XXX loss and to position. We RMB Cash profit cash restricted September cash as fair assets a were have value million very billion close through

Now moving outlook discuss our to for XXXX.

XX. to go slide Let's

the take resilience as third variant China. has pleased were COVID to business Delta we quarter, situation in continued with of in October the While hold the the our since worsened

visits. control the is virus. significantly highly lockdowns, maintain reliant health In measures [indiscernible] world, Beijing, In XXXX, new provinces of China officials and and More absolute which other Beijing, have total zero and in places of in our likely forms cases regions severe, of have Guangzhou, spread cases compared China this persistent. is remains to hospitals the been it testing, COVID been on of level of travel many implemented restrictions since LDT mass in number Shanghai, and impacted of small anticipation our traffic have alert the many the contain And People's XX in of patient National in particularly policy. Olympics key the been diligently to across since restrictions the reported COVID the the has patient continue Although to October. markets, limited, high to Winter a including parts the than Congress to segment

slide Moving second that, At quarter, communicated if we persistent more anticipated. this to worsened, would the situation new revenue to restrictions XX. the update originally our or we believe point, this In sustained the the outlook and than for COVID wave COVID we be related year.

third As such, XXXX revising concludes will million, discussion of representing our be quarter XX% our expected RMB to now around compared call to back we XXXX. financial revenue the to are results. of This approximately Sizhen. XXX growth now turn I the

our the XX, Last, pleased Thank to adversity through the operationally China least, commercialization our emphasize long-term XX%. remain And while fundamentals five-year see the business. we and our in we've to execution. but cancer Councils focused development positioned solutions rate In business. Under the the macro also plan, from drive commercial, XX the increase Healthy base and in not on development to financially China to of you, early biopsy XX% continuing environment with we underlying survival MRD, particularly Evan. goal of over and of COVID. screening closing, growth we is face current related full ramp continue liquid slide and strong and remain favorable achieved cycle on to like pipeline would I we're very substantial for cancer approximately State very our efforts XXXX to across success clinical well to the up continued management, Shown business. based grow both

rapid monitoring as a biopharma immunotherapies precision demand diagnosis business emergence As oncology well services. we the for will our player targeted and as leading in expect China, increase our of

the Recently, innovative government task While medical encouraged improve are the quality improvement this early raise action initiatives action issued also an the plan these is and from of unmet also cancer welcomes standardize the like as to standards. address solutions introduce medical plan, needs. target to key one industry its focus testing detection, particularly laboratories. to for National a XXXX Health differentiated diagnosis technologies with the liver XXXX. oncology management cancer, remains and highly treatment to Commission companies diagnostic and policies to Genetron capabilities key of that Under us

a an call. our For example, prospects we as about Overall, the our Guangzhou Guandong growth of for Laboratories. of passed anticipate Onco tailwinds. oncology Center remain lab, final policy we sector questions. China test prepared of the confident This recently for now the precision we have LDT Clinical ready PanScan the by review to beneficiary for Genetron a portion today's remarks and continued in be concludes we're from Operator,

[Operator Instructions].

from Our of the BTIG. Nam with is first Sung Ji question line

Congratulations on all making. you're that the progress

to PCR this my versus comparable question So, between the kind the the And the first at of are point the what's the there expectation trials NGS-based HCCscan characteristic your performance versus the terms is kind of performance of PCR-based the characteristics NGS? on from to characteristics performance any there if in point? two? standpoint comparisons Or HCCscreen. Are see of is

it. Sung Thanks raising a important Ji, this question. very is for

with registrational the homework before So, go for decide to done we HCCscan. trial forward obviously, we've our

CTO, performance question. data have Yuchen our Dr. we'll maybe address So Jiao, the to

you. don't the assay because the HCCscreen, comparation the we both one XX%. and in them specificity cohorts draw assay, not We to We PCR on it split and of the DNA shows XX% the blood to with three HCCscan, we data control NGS. have this direct sensitivity do from of case PCR the assay, retrospective XX% assay to in Thank have limited validated get to different the NGS want HCCscan, a and XX% PCR-based the cohort, and the

development for what the screening what timeline will about you data, publishing test. standpoint? I steps early Curious CRC curious, but, the be next are realize from the steps a initial are your next

CRC question The the right? is update, Yuchen? on

the data early are cohort next we retrospective screen prospective and which is to assay. submit early try We're start very important planning going year. publish cohort to for validation, Meanwhile, the the to

we so far. We're, we cohort we in encouraged study through with have on established world retrospective as data shown through commercialization. And cohort we fact, the built HCCscreen HCCscreen, as the the the infrastructure the study very that, by well have retrospective real believe

will year prospective new the study study assay. actually cohort We we a this the for next much we pilot be assay, have launch we so. CRC complete the program. better to or cohort this And can And launch in And move a prospective into registrational potentially will to start trial. infrastructure anticipate will we able also, the a product for the assay's commercialization

Lastly in road. partnership? solid the you And kind the partnership list looking for of you at maybe cancer? at you also, clarify, this which market this do cancer about think for me, on AstraZeneca, indications approach talk current your on given you're included of priority the the if could are Chinese the with just the include also to MRD approach tumor-naïve tumor that that tumor-naïve does Is mentioned down – point,

Yes.

call, And experience the So, to think multi-cancer joined it resources XXXX. types year first technical cancer next do right. we the will research I is with the good on the of have And to be good CRC. number conducted, the publish a accumulated results expect goal. a one of and will the we such development. with based cancer in as is very half AZ other and study. lung liver And in combination past of expedite together collaboration tumor-informed product the cancer well, conference And our data class the as on product, study's have mentioned we the as we in AZ, obviously, But gene

terms share of tumor-naïve, can In some I here. probably details think Yuchen

gastric and clinical in have data published. has in we which the samples to mentioned, the Sizhen As been collected trials addition cancer,

in We tumor-naïve Capsule, can liver compare to can that on cohorts, tumor-naïve or the they to have technology, these for clinical gather That's means based have assay, different algorithm so a our new can assay of We testing and new blood we're tumor-naïve cancer, the our the This the information and CRC test the can times method the having assay the to panel how with check very all without performance test can sample to some we with we immediately features assays. optimize the we tumor-informed. already ovarian predict multiple universal tumor-naïve But assay association. to of information data. collect Mutation cancer the the samples, collect also prognosis. according solid personalized personalized the

[Operator Instructions].

question the of Credit Next Huang from of Yang is line Suisse.

My is also [indiscernible] screening first question HCCscan. your for about strategy new portfolio. early

what the I is testing also kind to using or between approach methylation the our HCCscan understand, tested want those So, different methylation two one NGS besides of kind is being Are and sites HCCscan is just in sites. approach, of is difference the one tests PCR?

the the basically has included the sites methylation in HCCscan seem panel – The of HCCscreen.

to qPCR methylation be included cannot also device apply in by are the which assay, use we FDA can breakthrough we because designation, for NGS, when but not So sites panel methylation be our the add detected detected of HCCscreen, setting up method the this we that panel qPCR-based we the in start the with and from assay. sites are sites that a few those by

So, six of up this the them methylation after the have And [indiscernible] panel. sites. seen are a panel [indiscernible] algorithm, the we got in and setting from most And of the case, HCCscreen. we've

see. I

trying because using trial, only targeting we sites You five to we HCCscreen. for nine HCCscan are sites accelerate but are four are we're for clinical to HCCscan clinical

PCR and HCCscan, then of the trial? mean kind on of focus kind is to that NGS first strategy will similar does to it be our shift a So next? So, faster

Let question details. you me Yun-Fu, first this more on then, can address and feel free add to

me let clarify. let first, So, me

we we of in from call, HCCscreen, trials, by and earning emphasized complete end on we HCCscan anticipate NMPA it anticipate both approval year, to still to So, get assays. both and next

the also for that nine sites HCCscan platform mentioned testing selected installation, the of enrollment in limiting numbers start trial assay. is terms with preparation more terms and will of lot NGS clinical the HCCscreen. in the sites we're five assay. we NGS after – of have select will for the The for NGS It's sites the essentially, four for instrument that to reason patient we a – We work HCCscreen patient a we the because enrollment

choose the NGS sites So, bigger to suitable believe operation. be it'll we for more sites good the or

all, parallel. these in period we large all of we portion for So, anticipate will next two forward a moving that in for – long have year, trials or

is having the implementing nation, due methylation installed again, greatly methylation that we launching and So, that greatly launch the COVID-XX assay hospital of and cancer will that coverage we kit product we detection for policy PCR the feel the products. the all the of has broaden PCR to the or value penetration screening a speed county machine believe both the of to PCR-based infrastructure based a been level will offering up when with fight market across liver China help or to our the

solidify leading screening So, cancer early liver will in to the of these enable combination huge market China. products in Genetron our position this

question last about of My is number. kind our

believe, XQ. For said less XQ LDT, number LDT to we the is last compared I tests year's similar, – of more or

As pricing change of the a test? there's or increase significant revenue that mix mean increase, of does

as our LDT LDT Yang, the services screening LDT both diagnosis early as you have includes followed revenue. us, as well

our commercialize screen year. this As you early started to liver we primarily test know,

our from we a at does number from are revenue. the mentioned to QX, because, we more as a contribution now hit now QX especially include on this direct not also in the LDT the relatively spread And And QX COVID has starting hospitals. given are call October, you tests, the earlier, okay, to and of So, this still outbreak, year, correlated the right? revenue region of COVID QX, seeing since looked virus region. provinces the the as LDT but and significant, So, had were That's is the is the and both. notice in worsening first business the that QX wider XX diagnosis service over of

of For early some with see from screening, do to And commercialize. all, spending QX, it's year, looking year all last are represents government a us all originally QX year, this for strong a start quarter while be in year our to given to of first ahead that softening a as collaborators given hoping the we strong we work growth that, there will that we usually season. towards end peak that very this the the were –

government to are there Secondly, opportunities increase the spending. for

business see given do are current the screening we some environment, softening well entering into into However, the early there as that QX.

that's the an this how numbers. that's outlook adjustment the overall we at why to for look made So, year. And we

Instructions]. like No back moment, of conference this Luk as question the and I'd remarks. [Operator closing for to to Ms. hand Hoki

joining our appreciate for us third and support. for again business update your We you quarter earnings ongoing call. Thank

hesitate to have Thank please not IR team. you reach day. a questions, you good and any If have do the to out

concludes this participating. you today's Thank and call. Thank for conference you.

You may now disconnect.