Niu Technologies (NIU) Q4 2025 Earnings Report, Transcript and Summary

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter 2025. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from company's IR site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required by law. Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to CEO, Yan.

Thank you, Kristal, and hello, everyone. Thank you for joining our fourth quarter 2025 result call. 2025 was a year of continued strategic transformation for Niu. We navigate a complex regulatory shift in China, executed a successful breakthrough in electric motorcycle segment and overhaul our international distribution for micro mobility, all while significantly expand our gross margins. While our fourth quarter volume reflect the temporary friction inherent in those structural changes, the robust foundation we have built positions us perfectly for accelerated high-quality and profitable growth in 2026. Now let's turn to the numbers. In the fourth quarter, we delivered 172,000 (sic) [ 172,763 ] units, represents a 23.8% year-over-year decline. This comprised of 158,782 units in China, down 12% (sic) [ 12.9% ] year-over-year, and close to 14,000 units overseas, down 68% (sic) [ 68.4% ] year-over-year. I want to spend a minute to dive deep in both figures as they are direct results of a proactive strategic transition we outlined earlier this year. First, regarding the China market. This decline was fully anticipated results of the transition to the new national standards for the electric bicycles. As we highlighted in our previous call, production of old standard models ceased on August 31, while the retail window closed on November 30. This led to a significant inventory front-loading by our distributors and retailers in Q3 2025. Naturally, this puts the sales forward, temporarily reducing our selling volumes for Q4. However, if we evaluate the second half of 2025 as a whole, our China deliveries actually grew 38% year-over-year, confirming that our continued growth momentum for the entire year. Now turning to our overseas performance. The volume decline was deliberately driven by a strategic realignment of our micro mobility channels. In the key markets like the U.S. and Germany, we have transitioned away from a traditional distributor-led model in favor of direct-to-retailer partnerships. While this structure shift meant our formal distributors pause orders to clear legacy inventories, it is a necessary evolution. It allowed us to capture higher margins and establish a closer, more agile relationship with our customers. Now zooming out to the full year 2025. The success of our broader strategy is clear. The total sales volume reached 1.19 million units, a robust of 29% year-on-year increase. This was fueled by exceptional performance in China, where sales surged 46% to surpass 1.11 million units. While our international volume of 80,000 units, a 51% decline, reflects a year of delivery channel restructuring, we successfully prioritized the long-term profitability over empty volume. The total revenue for the year reached RMB 4.31 billion, up 31% year-over-year. Most impressively, our full year gross margin reached 19.6%, expanding by a massive 4.4 percentage points year-over-year, reflecting our premium product mix and operational efficiencies. Now let me dive deeper into the specific operation dynamics of our China and international markets. Let's first look at China operations. We concluded the fiscal year with the exceptional performance across the China market. Total domestic sales volume successfully surpassed 1 million milestone, reached 1.11 million units, representing a robust of 46.5% year-over-year increase. This was the direct result of our highly integrated domestic strategy. Our momentum was propelled by 4 key pillars: one, the portfolio optimization, expanding into high-growth category like electric motorcycles, while maintaining our high-end market positions in electric bicycles. Second, technological leadership, sustained investment in cutting-edge smart riding innovation. Third, brand elevation, targeted campaigns that solidified our premium position, particularly among the Gen Z demographics. And the last, the channel expansion, aggressive scaling of retail network into the lower-tier cities. Together, those initiatives allowed us to capture significant market share and drive high volume growth in our home market. Now first, in 2025, we further fortified our product foundation late in 2024. Our core NMUF matrix has become the backbone of our business, representing nearly all of total volume. The N-Series continued to be our standout performers, delivering 43% of our total sales and successfully capturing every tier of the market. Throughout 2025, our focus remains on hero-SKU development and rapid innovations. This disciplined approach where 9 major products now account for more than 70% of sales allowed us to iterate it faster and deploy our technology platform more effectively, resulting in a leaner and a highly responsive product structure. Perhaps the most defining structural evolution for Niu in 2025 was our breakthrough into the electric motorcycle segment, led by a phenomenal success of FX Windstorm. The e-motorcycle now represent more than 23% of our total annual sales. This achievement validates our diversification strategy, improves our unique capability to accelerate the Niu market categories. The FX Windstorm has democratized high-end performance by integrating high-torque powertrains, strong durable frame supporting a top speed of 80-kilometer per hour and the flagship technologies like dual-channel ABS and the millimeter-wave radar into accessible RMB 4,000 to RMB 5,000 range. We've created an unmatched competitive moat. As the first high-speed e-motorcycle for the Gen Z segment, its momentum surge to a remarkable of 42% of our total sales in the fourth quarter. Beyond its appeal to young enthusiast, the Windstorm spec defined by high-torque powertrain and durability served as our primary engine to break through the high-growth delivery segment. Recognizing that professional riders were underserved, we responded with a targeted multimodal ladder strategy. The FX Windstorm, with this robust frame and the high-performance motor, the FX was our first model to successfully penetrate the delivery market, proving our consumer tech could meet intensive commercial demand. The NX Windstorm. In Q4, we launched the NX specifically for the delivery professional who requires higher capacity storage, build on our newly developed high durability frames, with the class leading 40 liters compartment. The NX contributed 10.5% to our Q4 volume in its debut quarter. And lastly, the NX and FX Windstorm, the entry-level anchors. To complete our coverage, those entry-level anchors serve as our high-value entry level performance offerings, allowing us to capture the budget-conscious professionals and daily commuters while maintaining a core Windstorm DNA. This expansion, alongside with our premium daily commute specs, has built a highly resilient and diversified revenue base for electric motorcycle segments. Now looking ahead to 2026, we'll continue to scale this leadership by developing a tailored e-motorcycle offerings, fulfillment riders and technology enthusiasts, accelerating our growth in the segment. Now moving to our electric bicycle segment. The 2025 was a pivotal transition year as the industry prepared for the China's new national standard. Our strategy was twofold: maintaining our dominance in the premium tier while aggressively populating our pipeline with the next-generation compliant products. Now to capture the high-end demand, we launched the NXT Ultra 2025 and FXT Ultra 2025. The NXT Ultra features the 10 major upgrades, with 77% core components redesigned to solidify its position as the premium market leaders. Meanwhile, FXT Ultra also add safety benchmarks such as millimeter-wave radars and dual-channel ABS. The market response was exceptional. We achieved over 20,000 units sold within the first 5 hours, generating more than RMB 220 million in sales, and ranking as a top-selling item across major e-commerce platform. We also continue to iterate our key models. The MT, our best-selling urban commuter, now accounts for 20 -- more than 20% of our total annual sales. With its compact design, a vibrant style, and the OkGo assist system. It has become particularly popular with our female demographics, proving our ability to design a specific lifestyle segments. The U3 Pro, we upgraded Gen Z favorites with a fine-tuned duel-channel ABS, offering the perfect plan of a trend-driven design and high-performance safety. Now to lead the transition to our new national standard, we strategically launched 2 key compliance series. The first one, the U1 one, as our first new standard compliant bicycle. The U1 redefined urban style, priced between RMB 4,199 to RMB 4,699, it features the lightweight design and smart integration like TCS and keyless entry. The K-Series. Launch in late 2025, the K-Series is a lifestyle-first platform. Starting on RMB 3,799, it features an innovative sled-type ring-arm skeleton frame for unmatched stability. With a 4.3 inch TFT display and magic wheel smart features, it is a personalized mobility statement that drives the trend towards intelligent commuting. Our full matrix of Niu standard products is progressing steadily, with a complete portfolio on track for a full rollout by Q2 2026. And in fact, we'll be showcasing a selection of those upcoming products at our launch event tomorrow. Now beyond our product expansion, 2025 was also a year of rapid advancement in our core technology stack. Our R&D strategy focused on the 2 primary objectives: democratizing the intelligent technology and pioneering the next generation of system mobility. In 2025, we successfully migrated high-end intelligent safety features previously exclusive to our flagship models down into our midrange entry level product. This includes a broader implementation of ABS braking system and radar technology, significantly raising the safety floor for the entire industry. Furthermore, we have introduced a suite of advanced smart functions across more product tiers, including full-screen navigation and our signature magic wheel interface, the dual direction smart throttles and adaptive hill descent system. Those features ensure a broader demographic of Niu riders can enjoy a premium flagship level experience regardless of their price points. At the high end of our R&D, we continue to push the boundary of what is possible in the 2-wheel industry. Looking ahead to 2026, our focus shift towards a collaborative and experienced intelligence. We are integrating scenario-based interactions and AI agent capabilities across our entire product ecosystem to create a more intuitive interaction between the rider and the machine. In fact, we're incredibly excited to announce that we'll be availing the industry's first AI-enabled smart scooter at our product launch event tomorrow, on March 17. We look forward to sharing more details during this event. And finally, our product -- our platform-based R&D strategy continued to deliver a significant operational benefit throughout 2025. By really standardizing the core components and the chassis architecture, we have not only accelerated our product development cycles, but also improve the manufacturing consistency and the cost efficiency. Now throughout 2025, we proactively leverage event-driven initiatives to expand our core user communities while making a targeted effort to solidify our position among the critical Gen Z demographics. Over the past year, we host more than 50 integrated brand activities, directly engaging over 0.5 million off-line participants and generate a 346 million total impressions. Those initiatives were strategically synchronized with our product launches to maximize impact. Key highlights included a high-profile crossovers such, as partnering with popular titles like Game for Peace online gaming to resonate with the younger gamers. The performance validation, setting up a lab record for electric toolers at Shanghai F1 event, showing case our engineering power. Community milestones, our 10th anniversary play for festivals and dedicated outdoor scenario-based campaigns, ranging from high-teens to competitive cycling, which embedded the Niu brand deeply within the outdoor enthusiast community. As we enter 2026, we are strategically pivoting back to the brand-driven growth. We initiated this shift with a high-profile announcement of our 2 global brand ambassadors, Wu Lei and Song Yuqi. Niu is the first in our industry to launch 2 global ambassadors simultaneously, perfectly embody our core value of performance, trends and use. This appointment ignites a media blitz that generated over 3.4 billion online impressions. We leveraged this momentum through a saturate offline presence, activating landmark digital displays and dominating a high-speed rail hubs across 35 cities, reaching an estimate of 500 million travelers. Now this integrated brand campaign served a clear purpose, to really reinforce Niu's position as the leading premium electric mobility brand. By combining a massive digital reach with a physical presence, we are building the brand equity necessary to support our next phase of expansion. Now in 2025, we continue to aggressively strengthen both our retail footprint and our digital ecosystem. Our nationwide store network has now surpassed 4,500 locations. Throughout this year, we added over 800 Niu stores, with a strategic focus on lower-tier cities. This delivery expansion is driving a deeper market coverage. Our digital channels maintain exceptional momentum in 2025. The total online sales reached approximately 0.5 million units, supported by remarkable high online conversion rate of near 50%. This metric is a testament to the health of our consumer demand and seamless efficiency of our online to offline model, which successfully bridge the online purchase with the physical retail fulfillment. Now with the social e-commerce, Douyin has solidified its position as our primary social e-commerce engine. Our ecosystem, they are powered by a 9 official flagship account and close to 1,000 dealer-operated accounts, generated over 95,000 live streams and 2.51 billion annual impressions. Having a perfected social e-commerce playbook, we plan to rapidly replicate the success model on Kuaishou in 2026. We are also expanding our online coverage to Meituan with 73 of our retail stores with Meituan accounts, another mass online channel for broader reach. Now moving to our international operation. While 2025 was a transition year for our overseas market, the underlying data reviews a significant structural improvement and a much healthier foundation for the year ahead. For the full year, overseas sales totaled 80,000 units, with close to 14,000 units delivered in the fourth quarter. First, our performance in international electric motorcycle segment was a major highlight. In Q4, we have delivered more than 2,000 units, 187% year-over-year increase. For the full year, the sales unit surged to 9,600 units, up to a 227% increase compared with 2024. This success was directly driven by our direct-to-retailer model. By bypassing the traditional [indiscernible], we significantly expand our dealer networks from 120 to close to 300 by Q4, surpassing our initial expansion target and giving us a direct control of the brand experience and the pricing. We also use 2025 to exceed our future growth. At ACMA 2025, we unveiled a strong global pipeline, including FQiX urban series, the NQiX 1000 high-performance motorcycle and XQi 500 offroad series. Those models will enter global markets through our DTR channels in 2026. Furthermore, we pioneered new territories such as North Africa, marked by our successful commercial launch in Algeria with our first 900 units CKD shipment in June. With this operational foundation in place, we expect a continued rapid growth in the electric motorcycle segment throughout 2026. Now in the micro mobility segment, we executed a planned transition to prioritize long-term health over short-term volume. Full year sales total of 70,000 units with a year-over-year decline, reflecting our strategic decision to restructure channels in the U.S. and Germany. We have successfully moved away from distributor heavy models in favor of our direct retail partnership. This transition allows us to capture higher margin, either greater control of our brands, and respond with much more agility to shifting retail trends. Now the most critical indicator of brand health is on the retail end. We sold over 100,000 scooters activated on consumers this year. The fact that activation are significantly higher our sales in volume is definitely a sign of a robust consumer demand. With this new channel model, our priority is to finalize the inventory normalization and position this business for sustainable and profitable growth. Now looking ahead, we see 2026 as a year defined by strategic acceleration across our entire diversified portfolio. Our groundwork in 2025 has set the stage for significant scale in both our domestic and international operations. In the China market in the electric bicycle segment, we expect the market to continue navigating a transitional phase through the Q1 of 2026 this year as the new standards are fully implemented. We anticipate consumer demand to remain measured in Q1, followed by a pronounced recovery as the regulatory framework stabilized and the supply chain adapts. To lead this recovery, we'll execute a phased rollout of our new standard product matrix, with a full compliant lineup on track for completion by Q2 2026. Conversely, our electric motorcycle segment is poised for a major breakout, supported by an increasing favorable record environment and the powerful market validation of our Windstorm platform. We are strategically positioned to capture the accelerated growth in this category. With the expanded product portfolio to cover more consumer segments, we believe we have built the most resilient and comprehensive e-motorcycle lineup, capable of capturing market shares across both professional and the lifestyle segments. Now turning into our international operations. We are transitioning from a period of restructuring to one of profitable scaling. In the electric motorcycle segments, we project a continued and disciplined expansion, fueled by our measured direct-to-retail network. By owning those dealer relationships directly, we are seeing a significant improvement in brand consistency and the service quality, which we expect to translate into higher volume growth. In the micro mobility segment, our primary objective for 2026 remains the finalization of the inventory normalization by prioritizing healthy sell-through over our artificial selling volume and maintaining a lean, agile channel structure while establishing a sustainable baseline for the near future. Now in summary, based on our current market visibility and momentum for our new product launches, we expect the total sales volume for the full year 2026 to reach between 1.67 million to 1.91 million units. Now with that, let me turn the call to Fion.

Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the fourth quarter figures, unless say otherwise. And all monetary figures are in RMB, if not specified. As Yan just mentioned, our total sales volume for the fourth quarter was 173,000 (sic) [ 172,763 ] units, a decrease of 24% (sic) [ 23.8% ] compared to the same period of last year. Specifically, China sales volume was 159,000 (sic) [ 158,782 ] units accounted for 92% of total sales volume. And overseas volume were 14,000 (sic) [ 13,981 ] units. For the full year 2025, total sales volume was nearly 1.2 million units, including 1.1 million units in China market and 80,000 units overseas. At the end of 2025, the number of franchise awards in China was 4,540. Total revenue in the fourth quarter was RMB 676 million (sic) [ RMB 676.2 million ], down 17% (sic) [ 17.4% ] compared to the same period of last year. To break down scooter revenues by ranging, the scooter revenues in China were RMB 545 million (sic) [ RMB 544.8 million ], down 16% (sic) [ 15.7% ] year-over-year and accounted for 94% of total scooter revenues. The decrease was mainly due to the lower gross volume and revenue per scooter. China's scooter ASP was RMB 3,431, down 3% (sic) [ 3.2% ] year-over-year and up 5% sequentially, mainly driven by the changes in product mix, with the shift from models such as MP, NLP and NSP to FX, U1 and NX models. Overseas scooter revenues, including electronic motorcycles, mopeds and e-scooters were RMB 36 million, representing 6% of total scooter revenues. Blended scooter ASP increased to RMB 2,600, up 32% year-over-year, mainly driven by the greater sales mix contribution from electronic motorcycles, which command a higher retail prices. Accessories, spare parts and services revenue were 95%, up 11% year-over-year and accounted for 14% of total revenues. This increase was primarily driven by the higher revenue from new smart services as well as from accessories, spare part sales in China market. For the full year 2025, the total revenue increased by 31%, from RMB 3.3 billion last year to RMB 4.3 billion this year. And China's scooter revenue as a whole saw a nearly 42% year-over-year increase, from RMB 2.6 billion last year to RMB 3.6 billion this year, taking 93% of total scooter revenues. Overseas scooter revenue decreased by 33%, from RMB 397 million last year to RMB 267 million this year, taking 7% of total scooter revenues. The total overseas revenues, including scooters and non scooters, contributing to nearly 7% of the total revenues. Let's take a look at ASP in 2025. The overall scooter ASP increased slightly from RMB 3,203 last year to RMB 3,269 this year. Among this, the China scooter ASP decreased slightly from RMB 3,377 last year to RMB 3,264 this year, primarily due to the changes in the product mix we mentioned in the previous quarters. In 2024, large-scale scooters like NXP, MT and N-play dominating our best sellers, with the average retail price exceeding RMB 5,000, while the more compact model, MP scooters, with a retail price ranging from RMB 3,700 to RMB 4,600 emerged as the best seller in 2025. While in the meanwhile, the large scale scooter like NXP, NLP still maintain a strong sales momentum in 2025. The overseas lending scooter ASP was RMB 3,330, nearly 40% increase year-over-year and driven by the greater proportion of revenue.... So we continue to buy the overseas blending scooter ASP. The overseas blending scooter ASP in 2025 was RMB 3,330, a nearly 40% increase year-over-year and driven by a greater proportion of revenue contribution from higher-priced electronic motorcycles and mopeds. The gross margin for the fourth quarter was 15.3%, up 2.9 ppt compared to the same period of last year. And the increase was primarily attributed to the continued margin improvement in the domestic market. For the full year 2025, our gross margin was 19.6%, up from 15.2% in the previous year, representing a year-over-year increase of 4.4 ppt. And this increase was primarily driven by the China market, reflecting a strategic shift in the product mix towards the higher-margin scooters. For example, the MT, NXT, FXT and et cetera, along with our continued cost reduction in the domestic market. This was partially offset by a lower gross margin of kick scooters in international markets. The fourth quarter OpEx was RMB 206 million (sic) [ RMB 206.1 million ], RMB 13 million higher than the same period of last year, and the OpEx ratio was 30.5% compared to 23.6% in the fourth quarter of 2024. Selling and marketing expenses were RMB 144 million (sic) [ 144.1 million ], RMB 8 million higher than the same period of last year, primarily due to the higher rental expenses in the international markets, along with the increased staff cost and higher depreciation and amortization expenses. These were partially offset by a decrease in advertising and promotion expenses in China market. Selling and marketing expenses accounted for 21.3% of revenue compared to 16.6% in the same period of last year and 12.7% last quarter. Research and development expenses were nearly RMB 50 million, RMB 11 million higher than the same period of last year, mainly due to the higher staff costs, share-based compensation and increased design and testing expenses. Research and development expenses accounted for 7.3% of revenue compared to 4.7% in the same period last year and 2.6% last quarter. General and administrative expenses were nearly RMB 13 million, around RMB 6 million lower than the same period of last year, mainly due to a decrease in taxes and surcharges, which were partially offset by an increase in foreign exchange losses. G&A expenses accounted for 1.8% of revenue and compared to 2.2% in the same period of last year and 2.3% last quarter. For the full year 2025, the OpEx were RMB 933 million (sic) [ RMB 933.2 million ], 24% (sic) [ 24.4% ] higher than last year, and OpEx ratio was nearly 21.7% compared to 22.8% last year. Selling and marketing expenses were RMB 676 million, RMB 186 million or 38% higher than last year, and about 15.7% of revenue compared to 14.9% in 2024. R&D expenses were RMB 166 million, RMB 36 million or 28% higher than last year, and about 3.9% of revenue compared to 4% in 2024. G&A expenses were RMB 91 million, RMB 40 million or 30% lower than last year and about 2.1 percentage of revenue compared to 4% in 2024. Non-GAAP operating expenses were RMB 906 million accounted for 21% of revenues compared to 22.1% last year. In the fourth quarter, we had a net loss of RMB 88 million and a non-GAAP net loss of RMB 82 million. On a full year basis, we had a net loss of RMB 39 million and a non-GAAP net loss of RMB 12 million. Turning to our balance sheet and cash flow. We ended the year with RMB 1.3 billion in cash, restricted cash, term deposit and short-term investments. On an annual basis, the operating inflow was around RMB 350 million, primarily reflecting the net income after adjusting for noncash items. Our fourth quarter CapEx was RMB 48 million. And for the full year 2025, the CapEx was RMB 178 million, RMB 58 million higher than last year because of the module cost and store expansion in the domestic market. And now let's turn to guidance. We expect the first quarter revenue to be in the range of RMB 887 million to RMB 1,023 million, an increase of 30% to 50% year-over-year. And the sales volume for 2026 was expected in the range of 1.67 million to 1.91 million units, as Yan just mentioned. Please be aware that this outlook is based in -- based on the information available as of the date, and reflects the company's current and preliminary expectations, which is subject to change due to the uncertainty related to various factors. And with that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.

[Operator Instructions] Our first question comes from the line of Yating Chen from CICC.

Yan and Fion, this is Yating from CICC, and I have 2 quick questions. First, could you share the current inventory situation for your kick scooters in the overseas market? And how you are thinking about the kick scooter business in 2026? Second, with the implementation of the new national standard for scooters in China, how should we think about the potential cost increase and the company's response?

Okay. This is Fion, I'll take the first question. Regarding to the inventory, actually, we already released the balance sheet figures in our earnings release, and the amount is around RMB 650 million for the whole inventory -- net inventory level. And I should say that more than 50% of our overall inventory are the aged kick scooters, which means more than RMB 300 million inventory are coming from the aged kick scooters. And that's why Yan just mentioned in the call is that in 2026, our top priority on the kick scooters is to improve the turnover of the aged inventory, especially the kick scooters, to change the business model into a more lean and straightforward and with our channel partners. And on top of that, I think for the whole year 2026 for the kick scooters, we are we are going to focus on the inventory itself instead of the new models import. And so we are -- we expected to spend the whole year 2026 to improve the inventory clearance and also to change the channel into a more healthier business model to support our going-forward kick scooter business.

Yating, this is Yan. So to address your second question on the cost increase. So we have done a few things. First, I think with the new standard, because there are material changes, yes, there will be cost increase. We also have increased our retail price, not exactly proportionally, but have increased our price to cover partial of the cost increase. Second, we are also, through our cost reduction initiatives, really through engineering to figure out what are the -- really the cost out initiatives to be implemented on each of the scooters basically through a platform standardization and also commoditize some of the common parts. That will help us to actually to reduce the BOM cost. So by doing so, I think we're in very good hands to sort of handle the cost increase with the new standard.

There are no further questions at this time. So I'll hand the call back to Dr. Yan Li for closing remarks.

All right. Thank you, operator, and thank you all for participating on today's call, and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.