Hello, ladies and gentlemen. Thank you for standing by for the Third Quarter 2025 Earnings Conference Call for VNET Group, Inc. After the management's prepared remarks, there will be a question and answer session. Please note the Chinese line is in listen-only mode. If you wish to ask questions, please dial in through the English line. Participants from our management include Mr. Ju Ma, Rotating President, Mr. Qiyu Wang, Chief Financial Officer, and Ms. Xinyuan Liu, Head of Investor Relations of the company. Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.

Thank you, Operator. Hello, everyone, and welcome to the Third Quarter 2025 Earnings Conference Call. Our earnings release was distributed earlier today, and you can find a copy on our website as well as on newswire services. Please note that today's call will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET does not undertake any obligations to update any forward-looking statements except as required under applicable laws. Please also note that VNET earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters. VNET earnings press release contains a reconciliation of the unaudited non-GAAP matters to the unaudited GAAP measures. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at ir.vnet.com. Next, I'd like to alert you that we will be utilizing text-to-speech technology powered by neulink.ai to deliver this quarter's prepared remarks by Mr. Ju Ma, our Rotating President, and Mr. Qiyu Wang, our CFO. The management team will join the Q&A session in person. Additionally, this conference is being recorded. A webcast of this conference call will also be available on our IR site at ir.vnet.com. Now let's get started with today's presentation. Mr. Ma, please go ahead.

Good morning, and good evening, everyone. Thank you for joining our call today. I'll start with an overview of our major accomplishments during 2025. Let's turn to slide four. We delivered another strong quarter demonstrating our strategy's effectiveness in capturing opportunities. On the operational side, our wholesale IDC business sustained its robust growth trajectory driven by our rapid delivery capabilities and customers' fast-moving pace. As of 09/30/2025, our wholesale capacity in service grew by 16.1% quarter over quarter to 783 megawatts, an increase of around 109 megawatts. Wholesale capacity utilized by customers rose by 13.8% quarter over quarter to 582 megawatts, an increase of around 70 megawatts while the utilization rate was 74.3%, reflecting customers' continuous demand for our high-quality, high-performance AIDC services. Our retail IDC business continued to progress smoothly, benefiting from growing AI-driven demand. This quarter, our retail MRR per cabinet increased for six consecutive quarters, reaching RMB 8,948. On the financial side, our total net revenues increased by 21.7% year over year to RMB 2.58 billion for the third quarter. Wholesale revenues remained our key growth driver reaching RMB 956 million, a significant year-over-year increase of 82.7%, fueled by the rapid growth of our wholesale IDC business. Our adjusted EBITDA for the third quarter also increased by 27.5% year over year to RMB 758 million. In addition, building on the increase we announced to our full-year guidance before Q2 earnings this year, we are further increasing our full-year revenue and adjusted EBITDA guidance this quarter. Thanks to faster than anticipated move-ins among wholesale IDC customers and ongoing operational efficiency gains. Supported by our premium wholesale and retail IDC services, we continue to capitalize on strong customer momentum and secure new orders in the third quarter. I'll share more on the next slide. Moving on to our new order wins on Slide five. In the third quarter, we secured three wholesale orders totaling 63 megawatts. Specifically, in addition to the 20-megawatt order from our JV project we mentioned on our last call, we won a 40-megawatt order from an Internet company as announced in September and a three-megawatt order from an intelligent driving company. All four data centers are in the Greater Beijing area. Entering the fourth quarter, we are seeing continued order momentum, including a 32-megawatt wholesale order we just secured from an Internet company for a data center in the Yangtze River Delta. Furthermore, driven by growing demand from customers for intelligent deployment, we secured a combined capacity of approximately two megawatts in new retail orders across multiple retail data centers from customers in the cloud services, local services, and financial services sectors. During the quarter, rapid AI development and a broader adoption of AI applications continued to fuel growth in China's IDC industry. We saw sustained momentum in AI-related investments, especially from hyperscalers that are executing strong CapEx expansion plans. This has further accelerated demand for high-performance data centers driven by AI training and inference needs. AI has become the core growth driver of the IDC industry, propelling the industry's business model evolution from project-based resource delivery to platform-based services that provide integrated AIDC solutions. Meanwhile, customer demand and critical resources such as power are increasingly concentrated among leading IDC players. As an industry pioneer in AIDC development, we are leveraging our acute insights, strong resources, and premium reliable services to seize these structural growth opportunities by quickly meeting customers' needs. Now let's delve into our business updates, starting with our wholesale business on slide seven. Our wholesale business maintained strong growth momentum, with capacity in service increasing by around 109 megawatts quarter over quarter to 783 MW and utilization rate remaining stable at 74.3%, mainly attributable to our delivery capacities at our NOR Campus 02 and NHB Campus 01a and faster than expected move-ins at our NOR Campus 01. Our mature capacity utilization rate also reached 94.7%, a relatively high level. We have a clear growth path for our wholesale data center capacity. Let's move on to Slide eight. As of the end of the third quarter, our total wholesale resource capacity was around 1.8 gigawatts. Specifically, our capacity under construction was around 306 megawatts. Capacity held for short-term future development was around 414 megawatts, and the capacity held for long-term future development was around 291 megawatts. These secured resources represent a significant advantage in light of the IDC industry's limited effective supply and are in line with our optimistic view of AI-driven demand's long-term growth potential. Moving to our retail IDC business on Slide nine. Our retail business continued to progress smoothly in the third quarter. Retail capacity in service was 52,288 cabinets with the utilization rate increasing slightly to 64.8% as of September. As I just mentioned, our retail MRR per cabinet has increased for six consecutive quarters, reaching RMB 8,948. Turning to our delivery plan on slide 10. With our strong and efficient delivery capabilities, we successfully delivered a total of around 109 megawatts in 2025, bringing our total deliveries around 297 megawatts as of September. We currently have seven data centers under construction, with six in the Greater Beijing area and one in the Yangtze River Delta. We plan to deliver around 306 megawatts of capacity over the next twelve months, or around 132 megawatts during 2025 and 2026, and around 174 megawatts during 2026. This delivery plan reflects our view as of September, but we may update these estimates as we gain greater visibility over the next couple of quarters. In conclusion, our strong third-quarter results showcase our ability to identify opportunities and our readiness to seamlessly meet evolving market demand. Our visionary hyperscale 2.0 framework has positioned us to lead under the new global AI-driven paradigm, supported by advantages across high-density deployment, delivery speed and quality, and cutting-edge sustainable technology. As AI-related demand grows, we will continue to advance our effective dual-core strategy and hyperscale 2.0 framework, seizing opportunities to further unleash our growth potential in the AI era. Now I will turn the call over to our CFO, Qiyu Wang, for further discussion of our operating and financial performance. Thank you, everyone.

Before we start the detailed discussion of our third-quarter performance, please note that unless otherwise stated, all the financials we present today are for 2025 and are in renminbi terms. Furthermore, unless otherwise specified, all the growth rates I am reviewing are on a year-over-year basis. Let's turn to slide 12. In the third quarter, we continued to pursue high-quality business. Our total net revenues increased by 21.7% to RMB 2.58 billion, mainly driven by the rapid growth of our wholesale business. Our adjusted cash gross profit rose by 22.1% to RMB 1.05 billion, while our adjusted EBITDA also grew year over year by 27.5% to RMB 758.3 million. Let's look more closely at our top line. As you can see on slide 13, in the third quarter, wholesale revenues, our key revenue growth driver, increased significantly by 82.7% to RMB 955.5 million, and the rapid growth was mainly attributable to the NOR Campus 01. Retail revenues increased by 2.4% to RMB 999.1 million. Our non-IDC business revenues increased by 0.8% to RMB 627.1 million. During the third quarter, we maintained solid margins thanks to our continuous efforts to enhance overall efficiency. As shown on slide 14, our adjusted cash gross margins improved to 40.7% from 40.6% in the same period last year. Our adjusted EBITDA margin rose to 29.4% compared with 28% in the same period last year. Moving on to liquidity on slide 15. We maintain robust and healthy liquidity bolstered by a net operating cash inflow of RMB 809.8 million during the third quarter, bringing our net operating cash flow for the first nine months of the year to RMB 1.37 billion. Our cash position remains solid, with total cash and cash equivalents, restricted cash, and short-term investments reaching RMB 5.33 billion as of 09/30/2025. Next, let's take a look at our debt structure on slide 16. We maintained our prudent approach to debt management. As of 09/30/2025, our net debt to the trailing twelve months adjusted EBITDA ratio was 5.5 and total debt to the trailing twelve months adjusted EBITDA ratio was 6.7, both remaining at healthy levels. Our trailing twelve months adjusted EBITDA to interest coverage ratio was 6.5. We prioritize long-term debt maturity planning in our debt and strategic management to ensure the security of debt repayment. Currently, the company's short and medium-term debt maturing in 2025 to 2027 comprises 41.4% of our total debt. Turning now to CapEx spending. As you can see on slide 17, for the first nine months, our CapEx was RMB 6.24 billion, with the majority allocated to the expansion of our wholesale IDC business. We still expect our CapEx for the full year 2025 to be in the range of RMB 10 billion and RMB 12 billion. The increase is mainly to support our planned delivery of 400 to 450 megawatts in 2025. Now moving to our full-year guidance for 2025 on slide 18. As we expect faster than anticipated move-ins among wholesale IDC customers and ongoing operational efficiency gains through the end of the year, we have further increased our full-year revenue and adjusted EBITDA guidance. We now expect total net revenues to be in the range of RMB 9.55 billion to RMB 9.867 billion, a year-over-year increase of 16% to 19%, and adjusted EBITDA to be in the range of RMB 2.91 billion to RMB 2.945 billion, representing a year-over-year increase of 20% to 21%. If the RMB 87.7 million of disposal gains on the EJS 02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth rate would be 24% to 26%. Please note our updated guidance factors in the impact of the private REIT transactions we issued early this November and excludes the target IDC project's financials from our consolidated financial statements. Before I conclude, I'd like to briefly update you on our ESG efforts. Our outstanding sustainability performance has once again earned recognition from a leading global rating institution. In 2025, our ESG score improved to 73 from 70 last year, ranking among the top 8% of the IT service industry globally. We stand out in areas including risk management, information security, environmental management, and customer relations, underscoring our comprehensive capabilities in sustainability development. This quarter's strong growth and enhanced profitability are yet another testament to our high-quality growth strategy. Looking ahead, we will continue to consolidate our core strengths and capture growth opportunities, delivering sustainable long-term value for all stakeholders. This concludes our prepared remarks for today. We are now ready to take questions.

Thank you. We will now begin the question and answer session. If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press 2. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, please ask your question to management in English and then repeat in Chinese. Your first question comes from Tom Tang from Morgan Stanley. Please go ahead.

Thanks, management, for this opportunity to ask questions, and congrats again on a very strong quarterly result. I have two questions. So first question is more on the 2026 outlook. So we're hearing that there has been some expansion in the domestic chips and capacities. Just wondering what is our current outlook for the overall auto tendering in 2026. Second question is about private REITs. So we noticed that we have filed another private REITs with a size of almost RMB 10 billion. So just wondering what will be the timeline of this private REITs execution, how much cash flow is going to recycle, and what will be your impact on the financial statements.

Thank you very much. You know, as we are approaching the end of the year, we are engaging our customers and trying to learn about their development path. This puts us in a well-positioned to plan our resources accordingly. So according to our communications with the clients and also the current status quo of the pipeline, we believe that the market will be fairly stable with a moderate increase for the year 2023. According to our conversations with our clients, we feel that they are having detailed expansion plans or growth nationwide. Therefore, we have to plan carefully in order to accommodate the user's needs. Because they are requiring us to deliver the capacities at a faster pace with a higher requirement. So that's why we are planning accordingly as well. And so the overall rating for the next year is that the market is going to be stable with a moderate increase. And with regard to your second question on the domestic chip, VNET is tracking and monitoring the development of the domestic chips very closely. We know that the sector is evolving very quickly, with a lot more options available. And we believe that in 2026, we are going to see intensive competition among domestic chip players; beyond the two to three major players, there are more upcoming players entering the market. So we're going to see significant growth and development in this sector. So that will give customers a lot more choices with more certainty, and that in turn will drive the development of our business.

Thank you. I will take your second question regarding the REITs projects. So these two REITs projects followed closely on the heels of our first private REITs projects. The underlying project for our first REITs project was retail IDC, whereas the underlying assets for these two REITs projects are wholesale IDCs. So this will be the first time that we have scaled private REITs issuance with underlying assets of wholesale. If these issues are too successful, this will officially mark the completion of the full closed-loop financial capital cycle of development, holding, partial exit, as well as long-term operation. These two REITs projects are currently being reviewed by the exchanges. The expected valuation multiples would be better than the first REITs project. Once these two REITs projects are successfully issued, we will, unlike the first project, consolidate the financial statements of these two projects into the group-level financial statements. Therefore, it wouldn't impact the group-level financial statements, specifically the revenue or EBITDA data. We are planning to adopt a similar approach with future private REITs projects with underlying assets of wholesale IDCs. Our goal is to complete the issuance by Q1 next year.

Next question, please. Thank you. Your next question comes from Timothy Zhao from Goldman Sachs. Please go ahead.

Great. Thank you, Madam, for taking my question. And congrats on the very solid results. Two questions here. One regarding I think this earlier mentioned that we receive more orders for hello?

Yeah. We can hear you now.

Okay. Yeah. So I was in the appears to be we need more orders in your wholesale campuses in Hebei and Jiangsu. From the geographical location perspective, how do you think about the customer preferences, and what kind of does each campus serve differently? That's my first question. My second question is regarding the pricing. It's just for the wholesale business. I noticed that for this quarter, there was some fluctuation in the wholesale and MRR. Just wondering how do you think about the pricing trend into the fourth quarter and next year?

I'll take your first question. Actually, the client takes specific considerations with regard to their orders for their business across different regions; they do not have very particular preferences. I think the major considerations on their end are first, the type of business and product offerings, second, the distance or proximity to their headquarters, and the third is how convenient it is to scale up the existing capacity that they have with us. And take VNET for example. We have observed that the clients have different types of requests across different regions, and it would vary quarter by quarter. We have a lot of demand coming from the Greater Beijing area as well as the Yangtze Delta area. However, we do have upcoming new demand from customers for campuses in Hebei province as well as the Wuhan Chapel campus. Like I said, the major considerations on the client side are their current product offerings, proximity to their headquarters, as well as how convenient it is to scale their existing capacity with us. So that's the major consideration on their end. And based on that, they are varying their requests quarter by quarter. And with regard to the pricing of our wholesale IDCs, according to what we have observed, the pricing for Q3 was fairly stable.

I would like to elaborate on that. First, customers are moving in faster than we expected. Therefore, the IRR of these projects is better than we expected. And number two, frankly speaking, in areas where the dynamics of supply and demand are in tight balance, VNET does not engage in bidding with low prices. Therefore, we are able to secure fairly stable order or contract prices. Thank you. Next question.

Thank you. Your next question comes from Daley Li from Bank of America. Please go ahead.

Hi. Management. Thanks for taking my question. Congrats on the strong results. I have two questions here. First one is, in our last earnings call, we mentioned we have a few projects, and we are participating in the tendering. Could you update us on the progress, and how we complete, you know, all the projects ongoing, or are we how many projects we are dealing with our clients? And in future, how do you see the seasonality of mold tendering in future? My second question is about the new land and the power resources. You need to call with our total resources on hand. Is likely stable. And, in future, which area will be our focus to find more resources? Land, and power?

Thank you for your questions. You know, as we have observed for the first three quarters, different customers are coming up with different requests at different paces. For us, we follow their paces closely. I have done a very brief summary of what we have achieved in terms of the new orders that we have secured for the past twelve months, which was 331 megawatts. Looking ahead to 2026, based on the services we are offering to our clients, as well as our understanding of them, we are confident that we can sustain this growth momentum. With regard to the wholesale IDC, we have been monitoring the client AI development trend closely. We have noticed that customers are balancing their inferencing and training demands. We have captured that change; the customers are pivoting more towards the inferencing, and we are deploying resources accordingly to meet customer needs. Therefore, we are repurposing some of our cabinets and acquiring GPUs in advance. This positions us well to accommodate our users' needs. In particular, with these orders from key clients, we are confident that our efforts will enable us to meet users' needs as the AI growth momentum continues to unleash. Regarding resources that we're planning to acquire in the future, we value this highly and put a lot of thought into it. Based on the services that we offer to our clients as well as our understanding of them, we are planning our resources for the next year. On top of that, we've extended our planning over five years rather than yearly. This allows us to plan more strategically to accommodate users' needs. To break it down, we carefully weigh three factors: first, the split demand between generic computing power and smart computing power; second, geolocations; and third, AI-related chip development. In more detail, for next year, our focus will be on the Greater Beijing area, particularly Wulan Chabu, Hebei, and surrounding areas in Beijing. The second area will be the Yangtze River Delta. We are starting to acquire resources for the next five years to meet our users' demand. Additionally, we are exploring resources outside of these two major areas. Thank you.

Thank you. Your next question comes from Sara Wang from UBS. Please go ahead.

Thank you for the opportunity to ask a question. I actually only have one question. So I recall earlier this year, management had shared that one of the top priorities from clients is the time to market. So has that changed? And, also, as interest in demand is going to be the growth driver next year, is there any change in the customers' consideration in terms of new order releases? If we talk about more workloads by inference, does that mean user latency will be a relatively more important configuration factor going forward?

I will take the second half of your question. Yes. We have observed that inferencing will become a major growth driver for next year. This means that customers will have higher requirements in terms of latency; the lower the latency, the better. Therefore, we are in an excellent position to meet customers' needs with our campuses in the Greater Beijing area, particularly in Hebei province and the Wuhan Jiangbo campus. Regarding the first half of your question, yes, it is quite a trade-off that we face. We are dealing with significant challenges regarding how fast customers want to move in with the capacities they have secured with us. We are taking three approaches to meet customers' demand. First, we are planning early in terms of civil engineering and external power supply. Second, we are consolidating our capacity through supply chain management. Third, we are adopting electromechanical modularization and other standardized construction solutions to meet customer needs. As you know, the general timeline that the customers expect is T plus six, which means they want to move in within six months after signing the contract. Yes, we can accommodate user needs in terms of the timeline. In one case, we were even able to deliver within three months after signing the contract.

Thank you. Next question, please.

Thank you. Your next question comes from Shuyun Che from CICC. Please go ahead. Hi. My name is management. Congratulations on the company's strong earnings, and thank you for taking my question. My first question is about the wholesale IDC; the delivery piece for the IDC business is very fast. Has the company set utilization rate targets for the next two years? My second question is about the retail IDC business. We have seen the retail IDC business' MRR has been growing for several quarters. What are the main drivers behind this trend, and how do you view its sustainability in the future?

With regard to the utilization rate, of course, the customers are demanding to move in at a faster pace. For our mature IDCs, the utilization rate is inching closer to 95%. Regarding the specific target on the utilization rate, I think it partly depends on the capacity that will be delivered in the next two years. We will disclose more information in the Q4 financials, and in the long run, we are confident that the utilization rate will steadily increase. Thank you for your attention to our retail ID business. As you know, the wholesale IDC business has been growing fairly quickly in contrast to the retail IDC. We are very pleased to see the MRR of our retail business continue to grow quarter over quarter for several consecutive quarters. The competitive landscape in this sector is intense. The growth can be boiled down to a few factors. First, in terms of customer needs, they are adding smart computing on top of storage plus generic computing. We are repurposing our cabinets to meet their demands and capture this growth momentum. Second, on our side, in addition to the hosting service to clients, we are providing incremental value-added services on the software level, such as networking and storage networking services. Lastly, we are initiating the repurposing of the retail cabinets into higher density cabinets. Clearly, we are benefiting from these efforts and initiatives. Should the demand from customers in terms of storage, generic computing, and value-added services sustain, we are confident in maintaining the retail business's growth momentum. Thank you.

Thank you. Your next question comes from Andy Yu from DBS.

Hi. Thank you, management, for taking my questions, and congratulations on the solid results. So I have two questions. Your key peer has announced plans to expand into regions with lower electricity costs to capture AI training demand. How do you see the supply-demand dynamics evolving in these regions where VNET currently has a first-mover advantage? Secondly, the government stance on data center CVITs has become more positive with a shorter timeline for new assets post-IPO. Do we expect our serial application to accelerate, and apart from these projects, what will our funding strategy be going forward?

Thank you. I'll take your first question. I think different companies are adopting different strategic growth approaches based on their own readings of market dynamics as well as their development legacies. They are deploying resources accordingly. However, I would like to elaborate on how we go about it. As we've iterated, over the next three to five years, AI is going to be an increasingly important growth driver. On the corporate level, our reading is that the training of foundational models will increasingly be concentrated among a few top players. Number two, we believe that inferencing and private deployments will continue to sustain their growth momentum. This can be confirmed from Jensen Huang's remarks. Number three, we believe that over the next five years, as domestic GPU chips grow, there will be more demand from inferencing private deployment, alongside many emerging intelligent agents. These are the growth areas or customer demands we are closely monitoring. In a nutshell, VNET will adhere to the principle of coordinated balanced development, using our resources to meet users' varying demands. Thank you. Our C rate is still underway; however, I am not in a position to disclose any information at the moment. We wish to update you later as we see more progress. Other than the C rates or public rates, we are proactively advancing the holding type ABS, also known as private REITs. We have successfully issued one and are hopeful this will allow us to recycle a significant asset fund or capital from such types of issuance. Additionally, I’m pleased to share that one of our domestic operating entities, Beijing VNET, has just received a triple-A rating from a domestic rating institution, which is rare among privately owned companies. With this favorable rating, we are actively advancing the issuance of domestic corporate bonds, particularly the Science and Technology Innovation Bond, which comes with a very favorable interest rate. If this goes through, we are set to benefit from a lower interest rate with a wider channel for financing.

Thank you. Your next question comes from Edison Lee from Nomura. Please go ahead.

Okay. Thanks, management, for taking the question. I do have one quick question. How do you see the trend for our unit CapEx spending? I noticed that for the first nine months, the total CapEx plan was around RMB 6 billion versus our full-year guidance of RMB 10 to 12 billion. This looks a bit behind schedule versus our capacity delivery schedule. So I am wondering if management can provide some colors on this and also for next year's CapEx, what's our outlook? And potential sources for funding our next year's CapEx?

The majority of our CapEx is focused on the wholesale IDC. The CapEx per unit megawatt for our wholesale IDC campuses is gradually trending down. We are still in the process of putting together our CapEx for next year, and we are preparing a similar size of funding. The sources of this funding will mainly come from asset securitization as well as the issuance of corporate domestic bonds. One quick number I want to share is that through the private REITs and development funds issued in 2025, we have successfully recycled RMB 2 billion into equity assets. Our goal is to exceed this number in 2026. We have many tools in our financing toolbox, and we are confident that we can fund our CapEx while keeping the leverage ratio within a secure range.

Next question, please.

Hello. I have two questions regarding the full-year update and guidance. The full-year guidance appears to be down a little bit from Q4 on revenue, based on the midpoint. What could be the reasoning behind this, given the strong customer moving rate? Is there a potential upside to the full-year guidance further? My second question is regarding the reported EBITDA margin in Q3. There was a sequential decline versus Q2 despite a very strong customer moving rate. What could be the potential drivers of this decline, and what would you expect the EBITDA margin trend to be in the next few quarters?

Let me take your question. As always, we have been consistently prudent in terms of offering our full-year revenue guidance. I think we are going to watch closely the pace of our customers moving in, as well as the electricity used by them, because these are closely related to revenue. Looking at the quarter-over-quarter growth, I think there's very little likelihood that the Q4 revenue will decline sequentially. I would advise you to refer to the upper end of our full-year revenue guidance range. With regard to the EBITDA margin, I would say it's within a reasonable range because the majority of our revenue comes from the wholesale IDC business. Due to rising temperatures in Q3, we noticed more fixed tariffs. These are reflected in our P&L, in terms of the tariffs being paid. However, our cost metrics remain consistent, and I view this as reasonable seasonal fluctuation.

Thank you. Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines.