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Bright Scholar Education Holdings Limited (BEDU -0.83%)
Q1 2019 Earnings Conference Call
Jan. 18, 2019, 8:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
See all our earnings call transcripts.
Prepared Remarks:
Operator
Good morning, and thank you for standing by for Bright Scholar's 2019 First Fiscal Quarter ended November 30, 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. However, please limit yourself to two questions only and then you may rejoin the queue. Today's conference is being recorded. (Operator Instructions)
I would now like to turn the meeting over to your host for today's conference, Ms. Ruby Yim, Investor Relations Counsel.
Ruby Yim -- Investor Relations Counsel
Thank you, operator. Good morning and good evening. Welcome to Bright Scholar's 2019 first fiscal quarter ended November 30th, 2018 earnings call. Joining me today are Mr. Jerry He, our Chief Executive Officer; Mr. Derek Feng who will succeed Jerry as CEO following this call officially on Monday; and Ms. Dora Li, our CFO.
As a reminder, today's conference call is being broadcast live via webcast. In addition, a replay will be available on our website following the call. By now you should have received a copy of our press release that was distributed on January, the 17th, 2019 after market close, Eastern Time. If you haven't, it is available on the IR section of our website.
Before we get started, let me review the forward-looking statements regarding this conference call such as statements related to future not past, events, often address expected future business and financial performance and financial condition and often contain words such as will, estimate, project, predict, believe, expect, anticipate, intend, potential, plan or goal. Bright Scholar may also make written or oral forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, Bright Scholar's representatives may make oral forward-looking statements.
Forward-looking statements by their nature address matters that are to different degrees uncertain, such as statements about the Company's goals and strategies, its future business development, financial condition, and results of operations. This ability to retain and grow its customer base and network of schools and growth of, and trends in the markets for its services in China, the demand for and market acceptance of its brand and services, competition in its industry in China, relevant government policies and regulations relating to the corporate structure, business and industry, fluctuations in general economic and business conditions in China.
Further information regarding this and other risks is included in Bright Scholar's filings with the Securities and Exchange Commission. Bright Scholar undertakes no duty to update any forward-looking statements, except as required under applicable law.
During this call, we'll be referring to GAAP and non-GAAP financial measures. We use non-GAAP measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net income attributable to Company or other consolidated statements of comprehensive income data prepared in accordance with the US GAAP. Please note, all numbers are in RMB and all comparisons refer to year-over-year comparisons, unless otherwise stated.
With that, I will turn the call over to our CEO, Jerry He. Jerry?
Junli He -- Chief Executive Officer
Thanks, Ruby. First and foremost, on behalf of Bright Scholar we wish everyone, every happiness, good health and prosperity in 2019. And thanks to everyone who is joining our call today to review 2019's first quarter results. Before we start reporting our performance, I would like to welcome Derek on board. He will succeed me as the CEO effectively on next Monday.
As you may have noted from our press release yesterday, Derek has extensive experience in the education sector. I can think of no one better to lead the Bright Scholar and then looking forward to working with Derek through the transition process and then continue advancing our next phase of organic and acquisitive growth.
Now I would like to pass the call to Derek to say hello and then make a few remarks. Derek?
Derek Feng -- Upcoming Chief Executive Officer
Thanks, Jerry. Good day, everyone and happy New Year. It's a privilege to have the confidence of the Board and be selected as Bright Scholar's next CEO. Bright Scholar has a strong portfolio of businesses that distinguish itself in the market by delivering increasing and lasting value to students and its stakeholders.
Jerry has been instrumental in driving its potential growth, of the Company and his team has accomplished admirable achievements in the past few years. As you know, private education is rapidly growing and is evolving, impacted by recent regulations, every time there are changes, there are opportunities. Bright Scholar is well positioned to continue the growth with its sound strategy, strong businesses, and ample capital. I am honored to assume this position and confident to continue unlock the vast potential from our portfolio of businesses. I look forward to contributing my experience to lead the Company's next phase of growth and to continue delivering superior value to our shareholders.
Let me take this opportunity to congratulate Larry -- Jerry on his promotion to Executive Vice Chairman and look forward to working closely with him and the talented team to maximize long-term value and together to take Bright Scholar to greater level of success. And I look forward to speaking and meeting all of you as we continue to provide updates and discuss our opportunities ahead.
Without further delay, I turn the call back to Jerry. Jerry?
Junli He -- Chief Executive Officer
Derek, thank you for your kind words. Again, welcome on board. Now let's get it started. For those who are new to our Company, we have included in our earnings presentation, a brief corporate introduction from slide 3 to 9, which you can download from our IR website. Again, all numbers are in RMB and all comparisons refer to year-over-year unless otherwise stated. I will start today's call with the performance highlights then share some of our key strategic initiatives and developments before turning over the call to Dora for financial review. After remarks you -- we will take your questions.
Please turn to slide 11. Bright Scholar continues to successfully execute against our strategies. In the first fiscal quarter, we delivered a revenue of RMB649.9 million, which represented a 39.7% year-over-year growth. Adjusted gross profit up 37.6%, adjusted operating income up 39%, adjusted EBITDA up 34.7%, and adjusted net income, up 39.9% for the quarter.
Our high growth is driven by increased traction in our core business and increased revenue contribution from our new business segment. Let's look at the detail, the breakdowns of respective segments on slide 12. Our focus on ramping up our schools or dividing return from our acquired business and delivering premium education service to our students as continuing to drive our strong performance.
The top line growth of our respective business segments continues to expand for the quarter, as international schools, bilingual schools and kindergartens grew over 25.2%, 24.7%, 29.7% respectively. Our complementary business grew by 244.7% as a result of this strong performance and the contribution from Can-Achieve.
Slide 13 shows more details of our school expansion, the enrollment increase as market demand for quality education continued to be very strong. As of November 30, 2018, we have averages during enrollment of 41,423, an increase of 22.1% as compared to the first fiscal quarter 2018. Total school capacity was 58,619 which blended utilization at 70.9%. We also have 4,693 teachers and instructors across our -- all business lines.
Turning to slide 14, we continue to maintain a competitive pricing across our network in all business segment to optimize utilization and to drive organic growth of our business.
Moving on to slide 15, our performance is a reflection of our commitment to quality education and to delivering the best academic results for our students. As of the release date which is still early in admission season, approximately 60% of students in the 2019 graduating class of our international school have received 356 offers from global top 50 institutions including one from the University of Chicago and four from Oxbridge. We expect that many more students will receive offers from these Elan institutions as the admission cycle continues.
Our business operational front, please refer to slide 16. We continue to progress important strategic initiatives to expedite the pace of growth. And I would like to provide a few updates before hand over the call to Dora for detail of our financial results.
To pursue organic growth is one of the key initiatives to build our business scale. As of January 17, 2019, we saw opening of three kindergartens in Guangdong, Shandong, and Hunan. We have total of 68 schools. including six international schools, 15 bilinguals and 47 kindergartens, covering nine provinces in China.
It provides a total capacity over 58,619 seats. The guidance to open five new kindergarten is still well on track. Our strategic investments, which underpin our plan to accelerate business growth. I'm pleased to report that, as of the release date, we have completed three strategic acquisitions and each of them represents a major milestone as we expand our global footprint and further broaden our complementary service offerings.
First, our very first overseas school, Bournemouth Collegiate School in the UK, second is the renowned Zhejiang-based art training institution, Hangzhou Impression, and finally, the overseas career counseling company, Chengdu Yinzhe, which owns the famous brand, DreambigCareer.
We continue to foster new collaborations, and entered into strategic collaboration with Changchun Normal University, our second collaboration following in Beijing Normal University. Bright Scholar plans to provide approximately 200 internship positions and recruit about 300 teachers in the next few years. The deeper collaboration with Country Garden is crucial to fast expanding our networks in asset light way. As of December 31st, 2018, we have signed contracts to operate a total of 13 kindergartens and two bilingual schools with the total capacity of approximately 6,900 students.
Our share repurchase program as shown in slide 17, we have been very active since the inception of the program in April 2018. As of January 17, 2019, the Company have repurchased about a 4.4 million of its American depositary shares for aggregate purchase price of approximately $52.7 million.
In concluding my remarks, Bright Scholar has delivered another strong quarter with robust growth from our core business and the increasing contribution from acquired assets in complementary business. Acquisitions remain a strategic imperative as we accelerate investments to establish our global footprint and expand our domestic business. With organic growth momentum driven by strong traction across the respective segments, we continue to make a tremendous progress toward our business and the financial goals that delivers sustainable long-term value to our shareholders.
So at this point, I would like to turn the call over to Dora to discuss our financials. Dora?
Dongmei Li -- Chief Financial Officer
Thank you, Jerry, and many congratulations to your promotion and also welcome to Derek on board. I look forward to working with excellent team as we progress to our next phase of growth.
Let's turn back to our financials. Please be reminded that all numbers are in RMB and all comparisons rather to year-over-year comparisons unless otherwise stated. Please also refer to our earnings press release for detailed information of our comparative financial performance on year-over-year basis.
Please turn to slide 19. Our revenue for the quarter was RMB649.9 million, up 39.7%. Revenue from international schools for the quarter was RMB218.6 million, up 25.2% as compared to RMB174.6 million. Revenue from bilingual schools for the quarter was RMB194 million, up 24.7%, compared to RMB155.5 million. Revenue from our kindergartens for the quarter was RMB137.7 million, up 29.7% compared to RMB106.2 million. Revenue from our complementary education services for the quarter was RMB99.6 million, up 244.7% compared to RMB28.9 million. Can-Achieve contributed RMB62.4 million to our revenue for the quarter.
On slide 20, cost of revenue for the quarter accounted for 54.4% of total revenue, as compared to 53.4% in the same period last fiscal year. Teaching staff cost, the primary cost contributor was 34.4% of total revenue as compared to 37.9% the same quarter last fiscal year. Average students-teacher ratio was 9.0 for November 30, 2018, as compared to 8.7 of the same period last fiscal year.
Slide 21, gross profit for the quarter was RMB296.6 million, up 36.8%, and gross margin was 45.6% compared to 46.6% in the same period last fiscal year. For international schools, gross profit up 25.3% to RMB107.3 million with gross margin improved from 49% to 49.1%. For our bilingual schools, gross profit up 29.7% to RMB87.4 million for the quarter with gross margin improved from 43.3% to 45%. Our kindergarten gross profit was up 32.3% to RMB69.7 million for the quarter with gross margin improved from 49.6% to 50.6%. Complementary education services gross profit up 190.5% to RMB32.2 million, gross margin was 32.3% compared to 38.4% of the same quarter last fiscal year. The decrease in margins for the complementary education service sector was -- is mainly due to Elan's incremental staff cost for opening two new centers and also the increase in rental cost as to comply with the recent regulation.
Slide 22, adjusted SG&A expenses for the quarter accounted for 17.7% up from 17.3%. The increase in selling, general and administrative expenses was primarily due to the increase in the compensation and the benefits incurred from additional, general and administrative staff members, employee stock ownership plan, related expenses to retain talent. Also the increase in marketing expenses for brand promotion and cost associated with the acquisition and other professional services cost to support the business grows as a listed company. Meanwhile, the incremental SG&A expenses incurred from -- also incurred from the acquired business.
Continuing to slide 23, the adjusted EBITDA for the quarter was RMB217.4 million, up 34.7% from RMB161.4 million in the same fiscal quarter last year. Adjusted EBITDA margin was 33.5% compared to 34.7% last fiscal quarter. Adjusted net income for the quarter was RMB167.5 million, up 39.9%, adjusted net margin was 25.8% as compared to 25.7% in the same fiscal quarter last year.
Please refer to table in slide 24 for the condensed income statement and also slide 25 for the reconciliation for SG&A, EBITDA and the net income on the GAAP to non-GAAP basis.
A quick note on our cash and bank balance in slide 26. As of the November 30, 2018, the Company's cash and cash equivalents and restricted cash totaled RMB2,428.3 million or $349.1 million as compared to RMB3,164.1 million as of August 31st, 2018.
We are reaffirming our guidance for fiscal year 2019 with a recap on slide 28. For the fiscal year 2019 ending August 31st, 2019, we expect our guidance for total revenue to be between RMB2,300 million and RMB2,350 million representing a year-over-year between 34% and 37%. We also expect our elevated student enrollment to be approximately between 41,600 and 42,000 representing an year-over-year increase between 13% and 15%. We also expect five new kindergartens openings for fiscal year 2019.
This concludes my financial update. Now I would like to turn the call back to Jerry for closing remarks.
Junli He -- Chief Executive Officer
Thank you, Dora. Our continued performance is a result of a deeper investment in expanding network, broadening education program and services that empower our student to achieve academic excellence. Looking ahead, we expect to expedite our growth by executing along our two strategy pillars. First, to pursue our organic growth initiatives in optimizing operation efficiency; improving utilization; broadening service offerings; and capitalizing synergistic opportunities from our acquired businesses.
Second, to pursue strategic, domestic and overseas investments and acquisitions for the acceleration of our business scale. Bright Scholar has the right strategies, service portfolio and people in place to spur the next phase of our growth. And we are fully committed to delivering sustainable long-term value for our students, employees, shareholders and other stakeholders.
Last but not least, I would like to take this opportunity to thank all for your continued interest and support for Bright Scholar. Fiscal 2019 is off to a outstanding start, and we look forward to building on this momentum, as I pass it toward to Derek to focus on driving the organic growth, while I focus accelerating the pace of pursuing investment opportunities in schools and the complementary business, both domestically and abroad.
That's all we have in forms as prepared remarks, and we're now turning over to Q&As. Operator, please.
Questions and Answers:
Operator
We will now begin the question-and-answer session. (Operator Instructions) The first question comes from Christine Cho of Goldman Sachs. Please go ahead.
Christine Cho -- Goldman Sachs -- Analyst
Hi, thanks, Jerry and Dora, and then welcome Junli (ph). So I have two quick questions. So one is related to within the cost of revenue, we see that it is broken out a new item called commission fee, can you just elaborate on what's that item is? And what is the outlook for that item going forward? And then secondly, I think in -- hello.
Junli He -- Chief Executive Officer
Go ahead. Go ahead, Christine.
Dongmei Li -- Chief Financial Officer
Yes, go ahead.
Christine Cho -- Goldman Sachs -- Analyst
Yeah. And the second question relates to the complementary education services that's actually growing in terms of importance (ph). And then, I think Jerry mentioned, it's a part of -- for the long-term growth strategy. Can you just elaborate on the direction and also in terms of our margin outlook in that complementary education services?
Dongmei Li -- Chief Financial Officer
Hi, Christine, this is Dora and let me answer your questions. First, regarding the commissions fees in our cost structure. I remembered, we consolidate kind of achieve into our complementary education services. The commission fees is part of Can-Achieve cost element. That's the commission, they provided to their secondary agents.
Second question regarding the margin profile expectations for the whole complementary education services, as we mentioned, Can-Achieve, I think we mentioned last quarter already, due to the nature of the business, Can-Achieve gross margin is compared to our core business, K-12 business is relatively in the lower -- is in the lower range. So that's why it's also, you can see on the gross margin, blended gross margin, this quarter, you can see, we have relatively a slow increase in terms of gross margin for the whole group.
And also, as Jerry just mentioned, we just completed three acquisitions which including the Hangzhou art training institution, Hangzhou Impression, and also the career counseling services which they will be consolidated starting from our second fiscal quarter. And their margin profile is at the bottom line is pretty much, little bit lower and in line, in the 20s (ph). Yeah.
Christine Cho -- Goldman Sachs -- Analyst
Okay, thank you so much.
Operator
The next question comes from Sheng Zhong of Morgan Stanley. Please, go ahead.
Sheng Zhong -- Morgan Stanley -- Analyst
Hi, congratulations to Jerry and Derek and also congratulations to the good result. I have two questions.
Junli He -- Chief Executive Officer
Thank you.
Sheng Zhong -- Morgan Stanley -- Analyst
One is -- thank you. One is about the student enrollment, actually you delivered very good growth of the student enrollment this quarter, especially on the -- in the international school. So, what did you do to have that strong growth in international school? And do you think your full year's enrollment guidance is too conservative at today's point of view?
And secondly -- secondly, is also about the international school, at the same time, we -- you increased the capacity utilization. Sorry, sorry about my background noise. So you increased the utilization rate, but it's -- the gross margin is relatively flat with last year. So any reason for this? And where do you see the margins trend? Thank you.
Junli He -- Chief Executive Officer
Okay. Thank you for asking the questions. I will take the first one, and I'll let Dora then take the second one. The first one is about the enrollment. There are actually two things that we have done, I guess in the last couple of years. And first one, because our student are getting better academic results. They have been to better schools, so our brand name has been better than in the past. So, we have more student coming through our international school to apply.
And secondly, of course, we have been ramping up our branding and the marketing efforts. We have put more investment in the people on the ground to run more marketing campaigns, to bring more student to our schools. So, these two add together, so we have more enrollments than what we have done in the past. We would expect those trend will continue as we -- our school are getting better, better results and also our brand is getting more, are better now in the market as well.
Dongmei Li -- Chief Financial Officer
Hi, Zhong Sheng (ph), this is Dora. I will take your second question regarding the blended margins for our international school. You may notice that the blended ASP for international school is flat for this quarter. I think, the major reason we have explained before, because, except the Guangdong kindergarten school, the other five schools are still ramp up. So we normally will not -- we didn't raise their tuition fees for these five schools. And also for Guangdong -- Guangdong school, due to the local authority reason, our application for raising the school fees was kind of hold for this school year. So, basically for Guangdong school, we didn't either raise the school fee, this school year.
And actually for the rest of the international schools, their individual gross margin has been improved, because of you know Guangdong kindergarten just stated and increased and also the one school in Guiyang, we recruit more schools, most students from the primary school which you know, the fees for the primary school stage are relatively lower. So, that impact the margin for the Guiyang school. And, on the planned basis, you can see, you know, the gross margin improved (ph) is relatively slow, but with the improve in the utilisation from the other five new schools, we will see a better improvement in the future.
Sheng Zhong -- Morgan Stanley -- Analyst
Thank you very much.
Operator
The next question comes from of Jian Song (ph) of Industrial Securities. Please go ahead.
Jian Song -- Industrial Securities -- Analyst
Good evening, management. Congratulations for the season. I have two questions. The first is about the three new kindergartens in this financial season. Could you tell me if these new kindergartens have been affected by the policy, such as the condition for rounding (ph) the schools or the Shenghua (ph) policy. The second one is the complementary service. I realize that Elan's gross margin decline was part of the reason for the rental expenditure increasing. Can you explain the reason for that increase? Thank you.
Junli He -- Chief Executive Officer
Okay. I would take both questions. First one, about the kindergarten, the opinion from the State Council was put out on November 15th, 2018. So that will affect the things about the source of the funding and also merging the acquisitions. But it does not affect to organically grow, opening new kindergartens. So, just to recall, are not affected by that at all. And also it depends on -- in general, it depends on where the kindergartens are, if the properties owned by the government and or jointly owned by the residents of a community, typically the government would put a price cap on those and then put it in the low cost kindergarten zone. But if you actually own the land and own the beauty, that's called a privately owned kindergartens should not be affected by that.
So most of our kindergartens are in that category. So, those three kindergartens are not affected. That's about kindergarten. Also, by the learning centers, because as you're probably aware of the, quite a few around of the new policy and the regulations against or on or about, or it depends on which, of course the way you look at about the learning centers nationwide, so they require to -- in the, lower than -- I guess it's currently being in the first three floors of any building.
So, and also there fire codes they have put into place. So some of our learnings are sort of where we had to relocate to a new location data and meet those requirements. Therefore, wherever you move you have not adjusted renting resource, so moving expenses and potentially loss of students as well. That's why our margin for Elan learning centers have gone down quite a bit, because of all the rules about learning centers.
Jian Song -- Industrial Securities -- Analyst
Okay, thank you.
Operator
The next question comes from (inaudible) of Blue Lotus. Please go ahead.
Unidentified Participant -- -- Analyst
Hi, congratulations on the solid quarter.
Junli He -- Chief Executive Officer
Thank you.
Unidentified Participant -- -- Analyst
I have two questions here. Could the management help us to breakdown the cost of revenue this quarter? And so could the management give us more color on what contains in the -- in terms of revenue and how about the gross rate of each other? And the second question is, what is the average salary level of your teachers? And what's the average annual increase in their salaries? Thank you.
Dongmei Li -- Chief Financial Officer
Let me just repeat, your first question is the breakdown of revenue by segment.
Unidentified Participant -- -- Analyst
No, breakdown of the cost of revenue.
Dongmei Li -- Chief Financial Officer
Cost of revenue.
Unidentified Participant -- -- Analyst
Yeah, yeah.
Dongmei Li -- Chief Financial Officer
Yes, I think we do have that in our earnings release. Let me just repeat that for you. International school, first quarter...
Unidentified Participant -- -- Analyst
I'm sorry. I can't, I just want to know, like the, because of the salary -- the salaries fee of the teachers.
Dongmei Li -- Chief Financial Officer
Cost.
Unidentified Participant -- -- Analyst
The cost of the -- hello.
Junli He -- Chief Executive Officer
So, it's the average salary of teachers, are you asking?
Unidentified Participant -- -- Analyst
Yeah, yes, yes.
Dongmei Li -- Chief Financial Officer
I think -- while the total -- the total cost, teaching staff cost, I think we reported a total teaching staff costs for the first quarter is around RMB223 million for the first, for the first fiscal quarter and that we also reported the teaching and instructor number for the first quarter. So, on average basis, we can do a easy calculation is somewhere around like RMB40,000 -- somewhere around like RMB48,000 for the first quarter, then you divide it by three, it's probably around like RMB15,000 -- RMB16,000 per month, that's on average basis.
Unidentified Participant -- -- Analyst
Okay.
Dongmei Li -- Chief Financial Officer
And...
Unidentified Participant -- -- Analyst
And how...
Dongmei Li -- Chief Financial Officer
The average salary increase is you know, somewhere around, you know, between the inflation, somewhere around like 6%, 7%.
Unidentified Participant -- -- Analyst
Okay, OK. Okay, thank you. That's very helpful.
Operator
The next question comes from Alex Feng (ph) of First Beijing Company. Please go ahead.
Alex Feng -- First Beijing Company -- Analyst
Hi, Jerry. Hi, Derek and Dora. Thank for your presentation and congratulations on your promotion. I have two questions. The first one is about our pipeline. You used to tell us how many schools are in our pipeline and in which categories are they? And my second question is about the policy. Could you shed us more light on your thought of the policy? Do you think it would have any difference compared to the Shenghua? Thank you.
Junli He -- Chief Executive Officer
Okay. The first one is about the pipeline of course, I cannot disclose the exact numbers, but I can tell you, what we are looking at. We are looking at K-12 schools, there are both domestic and overseas. And I'll probably more emphasize on overseas at this point of time, and also we're looking at complementary services more on the, other than kind of a test prep or related to academic work out of school. So that's why we are looking at. It's very strong pipeline, but again, I can't talk about numbers.
And in terms of policy, the Shenghua, the -- the second version actually did not come out as they expected. They were -- earlier they were saying that the final version would be -- would come out about end of 2018. But actually, by the end of 2018, they came up with another draft for public opinion and that will, of course it will, we are -- we are the one of institution that provided our comments and opinion and send it back to the Department of Justice.
So, we don't know when it is going to come out, but compared to this version to the version that we had, I would say qualitatively, it's a -- I think it slightly better, but not a by much. So we would know for sure, what's the final version will be -- but at least, it tells me that they were -- they are very cautious about this again. Because, they come back again and again, because it's radically (ph), obviously, they first had drive this, they can send it up, to the upper management for sign off, already, so they came back twice, that means, at least indicated that they were very cautious about the impact of the law. But like I said, you know, the -- what's the second version can be, we wouldn't know yet.
Alex Feng -- First Beijing Company -- Analyst
Okay, thanks. And I see there are 13 kindergartens in your pipeline. So I want to know that do you think our organic -- our greenfield of kindergartens is totally not as affected by the new policy on kindergartens?
Junli He -- Chief Executive Officer
Well, according to the current version as the opinion and the laws. They are not affected, because, it is not related to any merger and acquisition, it is not related to property owned by the government. So it's a privately owned, land and building, according to many of the local government that we consulted with -- it's a free market, we can register as a full profit, then, they are not even going to regulate on the price either. So that's what did they told us for now, at least, so we think, we are continuing to develop a new size that -- in that a category, not -- not tied to getting into too much of the space, where either the government-own or the committee-own kindergartens.
Alex Feng -- First Beijing Company -- Analyst
Okay, that's very clear. Thank you.
Junli He -- Chief Executive Officer
Thank you.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to Jerry He for any closing remarks.
Junli He -- Chief Executive Officer
All right. Thank you very much for joining this conference call. Please feel free to contact us if you have any further questions. We wish everyone a good day.
Operator
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Duration: 44 minutes
Call participants:
Ruby Yim -- Investor Relations Counsel
Junli He -- Chief Executive Officer
Derek Feng -- Upcoming Chief Executive Officer
Dongmei Li -- Chief Financial Officer
Christine Cho -- Goldman Sachs -- Analyst
Sheng Zhong -- Morgan Stanley -- Analyst
Jian Song -- Industrial Securities -- Analyst
Unidentified Participant -- -- Analyst
Alex Feng -- First Beijing Company -- Analyst
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