Central Retail Corporation Public Company Limited (CRC) Earnings Call Transcript & Summary

Let me start by kicking off with our Q3 performance. And we had some short update on our transformation journey that we have been through. And lastly is about outlook. Can we move to the next slide? Now I must say that Q3 was 1 of the most challenging quarter affected by serious lockdown, as you know that in work in Thailand and Vietnam, 2/3 of our stores closed almost a quarter. And the ones that could open, operating with much less business hour. Despite this impact, we managed to navigate through the crisis. Actually, closing the quarter with revenue of [ THB 38 million ], minus 10% only from Q2 this year. When you look at the year-to-date of 9 months, total revenue above THB 137 billion, which is only minus 4% versus last year, and EBITDA around about THB 12.3 billion, including just only minus 2% compared to last year. We have pushed forward our expansion and strategic acquisition together with the full support to our partners and payments during the difficult time. And therefore, impacting to our net profit in the short term. Khun Ty will a couple more details later on about all these financials. Now let's move to the next 1 is our journey. You can recall that more than 3 years ago, we had embarked on our deep transformation journey that we call New Central, New Retail. Thanks to our 800 days journey, we have captured opportunity very well in the new digital economy as well as the new normal created by COVID. There are 4 key drivers that we focus on. The first one is about our conviction. As a purpose-led organization focused on our purpose, center to life, and always pioneer to bring the best experience to our [ secure ]. Second, tapping into the first mover advantage and spend [ here ] in our omnichannel platform. Third, we actually switch achieved our portfolio into a fast-growing space to enable a sensible growth. And finally, our solid operation grip and strategy is driving faster community advantage. Now when you look at this chart, you can see that we combine our insight and also foresight and also took the lead on emerging trends that shaping the market. We are including that in a technology driven economy, we redefine experience by empowering customers with more choices, better solution and elevated convenience. You can see in the next chart, okay, at the call, our most decisive strengths actually come from within. We have to unlock our people potential to be share and reset the mindset and the way we work. And powering the organization to build from strength to strength and shaping our additional future. If you look at the next page, our deep transformation that we built on a digital first and omnicentric approach, [ full force ahead of the gear ]. [ SB ] pioneer omnichannel capability that merging offline and online worlds seamlessly to deliver the best experience to our modern customer. You can think about quick commerce, social commerce or percent shopper or everyone. For example, we took the lead to innovate the new sales channel and services to fulfill in which our customer needs. Next page. Moreover, this is about developing a seamless ecosystem, and this is what we have been building for the last 800 days and put us in a position of strength. You can see that with a powerful portfolio of 10 verticals across diverse segment, base infrastructure that indicate our coverage of physical and visual assets, new equity partners, biggest data-led from our loyal platform -- loyalty platform and digitize the supply chain and logistics and omnichannel inventory. And we have created a future fit organization, headway for the future of retails. And if you look at the result next slide, you can see that this is what we have and achieved for our transformation journey. Results speak louder than words, okay? You haven't had them a few. I think we have been successful turning the first million [ plus ] offline customer into omnichannel customer, giving a better engagement, higher loyalty, more category purchase, and hence, better sales. Omnichannel sales are now contributing about 20% of our portfolio. And I'm pleased to share with you that by the end of this year, our online business will be profitable. This is a big achievement that we have done together about this [ negative place. ] Now we are also for deliver in the best term of mainly the best of both offline and online world to our customers. We continue to rejuvenate our physical platform, speed up expansion and integrate the new technology such as robotics and AI to deliver a new innovative retail experience. We also launched a new innovative format. It is a new category in health and wellness, Baby & Me, PET N' ME and also go! WOW to capture and mass opportunity growth. Next slide, the last is key driver that I would like to share is involving a strategic decision to shift our business portfolio into a high-growth space. We are no longer a fashion company. We are no longer a department store company. Which to be in, in a big way, in hardline and foods. We have expanded our presence in Thailand, Vietnam mass-market segment, and [ champion ] hardline segment with a Thaiwatsadu as a flagship brand. Thaiwatsadu has been [indiscernible] about 10 plus years, and now we are competing neck to neck with the market leader. In fashion, we have succeeded in building a destination for premium brands by leveraging the partnership with the world-leading partners and synergy with our Central Europe to diversify the product offering and answer to the needs of premium lifestyle customer. You can see the next chart on the mix of our sale contribution as told in these 2 pie, 2 pie chart demonstrate how our diversified portfolio [ to captive growth of activity ] and generate a healthier, more profitable in the long term. You can see the shift from 2019, okay, in outer circle and in the circle is year-to-date. You can see that again in terms of course, basically, we still maintain 42%. In terms of fashion, okay, we are at 22%. And hardline from 36%. And for the same as EBITDA. Now I would say this is a quick summary of our 800 days of journey. I must take that again, we hit the reset button at the first by coming, okay, in the last 2 years. Okay? And then that's why I gave us in a winning platform. In omnichannel, we sell with new customers as well as we sell through the COVID impact. If you look at moving forward, we foresee a brighter outlook. We see a positive consumption trend after reopening. And it's not a pending demand. Evident from sales and traffic rebound, we are very fast. Also, our financial strength going to help us to capture [ upside ] for today and tomorrow. We remain committed to our long-term strategic decision and direction. And in 2022 and beyond, we continue to win in the new normal as we charge forward with the strength and resilience to create a sensible value for our stakeholders that we serve. Okay? And this is the first part that I wanted to share with you that, okay, this is the Q3 quick summary. And also excited to share about our achievement, our lead transformation to put us into a very strange and very positive portion to move forward. And then we commit ourselves okay in the long term. And now let me hand over to Khun Ty, who will provide more update on financial and business. Thank you.

Thank you, Khun Yol. Good afternoon, analysts, and also fund managers, to go briefly here and give you some more insights. And also, I'll try to leave a lot more time on the Q&A, so you can ask a lot more detail on the financial. Firstly, on the Q3, as Khun Yol mentioned, we have been impacted very hard by the closures in Thailand for 1.5 months, almost 2 months. And also in Vietnam, up to 3 months, Hanoi and also Ho Chi Minh. Another factor that impacted the financials, but on the positive side, mainly is the acquisition of the COL that we did in February this year. So these numbers are the combination of 2 major factors. But again, overall, Q3, I would say, is a blip in our performance recovery. I think later on, we'll discuss a little bit about the momentum that we're seeing already in September and October in Thailand and already in October in Vietnam. So momentum of the business is actually doing much, much better in Q4. So we'll get to that later. So going back to Q3, revenue declined 13% year-on-year versus last year, THB 47 billion. However, if you look at the left side, it's actually similar to when we locked down the first time. However, this year, we had Vietnam locking down, too. So our top line was not as bad. And the second one, this is the core EBITDA. Our core EBITDA dropped down 50% to THB 2.7 billion, down from last year, but much higher than what we saw the first lockdown last year, primarily because we were able to control our stock much better. Our cost operation, it's much more leaner this year going forward, as Khun Yol already mentioned. On the right-hand side is our NPAT. Our NPAT is negative THB 2 billion, dropped from positive 350 last year. But again, also better than the first round was a lockdown that we saw last year. If you look at the bottom part, that sales mix. The hardline, the food has increased, while the fashion has declined. Fashion was detrimentally impacted with a lot of store closures in Thailand. Also on the right-hand side is the EBITDA mix. Our hardline has tremendously increased from 22% share last year to 50% this year. Our food increase as well, while our fashion dropped quite a lot from 51% share last year to 12% this year. We go to the next slide. This is our revenue breakdown into 3 components. The largest is 90% contributed by the sales of goods. The second one is 3% of our total revenues from the rental. And the last one is from other income, which is about 7% of the revenue. If you go to the left-hand side, you can see that our sales dropped 11% year-on-year or 10% Q-on-Q. This one primarily came from Thailand and Vietnam because of the closures. And if you look at the segment, it's primarily coming from fashion and food from Vietnam as well. The rental saw a bigger decline. The rental is coming primarily from the malls in Thailand and Robinson Lifestyle malls. And also the malls in Vietnam, we have 38 malls altogether. We have to give a big discount to our tenants to support them in terms of this typical situation. But again, also, the situation will pass, the discount will be less and less. The second part is the occupancy of Vietnam malls dropped slightly as well. On the other income, primarily it should be linked to sales. However, this year, there was a 23% decline compared to last year, mainly because last year, there were some one-off on the FX gain. If you remove that, the other income would have declined about 12%, so in line with our sales. Other income primarily comes from income that we get from suppliers in promotions and logistics. This our gross profit. In Q3, our gross profit margin was sitting at 23.1%. A reduction -- slight reduction from year-on-year and also Q-on-Q. Mainly because, again, store closures, Vietnam and Thailand. And when we had to reopen, we had some more discount. Second is our online contribution was more -- is higher than last quarter and also last year. So the pricing online is a little bit less in terms of the margin. And thirdly, the mix of our group has changed somewhat less on the fashion, high margin to the lower-margin business segment, which is the hardline and food. However, if you look at the 9 months, we're still faring quite well at 23.1% more than 22.7%, mainly it's coming from the acquisitions of COL, which has a higher-margin business. On the right-hand side, you can see that the GP rental declined as well. This one, I mentioned before is from the discounts that we're giving to the tenants in Vietnam and also in Thailand. We go to the next slide. This is our SG&A. In Q3, we're sitting at THB 13.8 billion. It's flat Q-on-Q, but a slight increase from last year of 5%, mainly because of the acquisition from COL. If you look on the right-hand side, you can see that the expense type of personnel and other expense went up, while number two depreciation and marketing utility went down. So we had a big saving when the store closes on marketing utility at rental discount. On the 9 months, you can see that there's only 1 type of expense that went up, which is personnel. Personnel went up 4%, and all of it pretty much came from COL acquisitions. The rest of our expenses, depreciation, marketing, utility and other expenses, have declined. So you can see that we had a very good cost saving initiative that we started from the beginning of the year and continue throughout the year. If you look at the bottom, again, there are some changes on the admin expenses, mainly coming from 4 parts, which is the personnel expense, obsolescence, foreign exchange and also professional fee. The biggest one is being the personnel expense again from the COL. And the second one is from the obsolescence, THB 500 million. Sorry, it's not written here, but it's THB 500 million impact mainly because we have to close our stores. So there is an accounting measure. If you look at hardline, the blue is actually the total for the Hardline. Black is Thailand, and the gray is Vietnam. If you look at Thailand, we have grew at Hardline by 14%. And the 9 months by 30%. Vietnam, however, reduced 53% versus last year Q3, primarily because almost all stores had to close down during the store closes. If you look at the bottom, however -- and actually Vietnam Nguyen Kim was actually starting to have a good turnaround in Q1. Top line is minus 21. The bottom line was almost breakeven. But because of the store closures in Q2 and Q3, we start seeing a dip Nguyen Kim. But again, starting in October, Nguyen Kim is seeing a flat turnaround with positive EBIT already. So our turnaround action plan that we started at the beginning of the year, it's going okay. If you look on the right-hand side, the beat up on Hardline on Q3 is up by 8% year-on-year. And if you look at the right side, 9 months, it's up 63%. And both the margin is positive and improving. On the food side, the green is the total for Vietnam and Thailand. The black, Thailand minus 4% on Q3. And the gray is Vietnam. So you can see that the big drop in Vietnam because of the store closures. However, if you look at the right side, the 9 months, Vietnam is only down minus 1%. So actually, the first 6 half, Vietnam is doing very well, but it got hit hard with very strict measures in Hanoi and also Ho Chi Minh, that's why it's a big drop. If you look at the right-hand side, the core EBITDA, year-on-year drop in Q3 is 32%. And 9 months is about minus 13%. But again, starting in Q4, we're starting to see a good turnaround in Vietnam businesses. In terms of fashion, the pink one is the total for Thailand and also Italy. Thailand has gotten extremely hard with minus 41% in third quarter. But La Rinascente is actually plus 18%, both in Q3 and also 9 months. For 9 months in Thailand, it's still minus 23%. Again with the opening in September, Q4 should see a positive number of top line going forward. On the core EBITDA Q3, we saw a big drop from 90% to only THB 325 million, and then 9 months, about a drop of 37% from last year. And lastly, on the property side, the red one is a consolidated minus 43%. The black one is in Thailand, and the gray one is in Vietnam. Again, you can see Vietnam is taking a big hit because of the store closures. But 9 months, Vietnam and Thailand were all about the same, minus 13%. GP also got a big hit, as I mentioned before, the 9 months is faring a little bit better, and in Q4 should be better as well. On the right-hand side is our leasable area. We increased by about 8% because we opened more malls, 2 malls in Vietnam -- sorry, 1 on Vietnam. And also renovation states that we convert from department store into leasable area in Thailand. However, occupancy has dropped mainly because of the Vietnamese performance. In terms of our capital structure, we are still very solid financially. If you look at the gray bar, our net debt stand at [ 2.2x ] to 1.2x, primarily from the acquisition of COL at the beginning of the year. If you look at our leverage ratios on the bottom, it's slightly worse, again, because of the blip of performance that we're seeing again in Q3. But going forward, the ratio will start to improve in Q4 and onwards. On the right-hand side, our structure, this, again, is similar to our guideline of 50-50. Actually, we achieved the 50-50 mark in September versus long-term and short-term debt structure. Again, we're trying to achieve the best cost of capital as possible by doing this guideline. And at the moment, our cash balance is about THB 48 billion. And that ends my section.

Thank you, Khun Ty. So going to the next section on the business highlights. We have [ to pare ] updates along our key strategic driver. So let's start with the omnichannel acceleration, and David will give you some highlight on that one.

Thank you. Good afternoon, everyone. So as has been mentioned just earlier, Q3 was not surprisingly a record quarter for omnichannel sales both in terms of online channels as well as O2O channels. We achieved up to September 2021, 121% growth. And it's important to mention that most of this growth is like-for-like compared to the previous year. Because if you look at the growth in Q3 in 2020, we have not launched many of the O2O channels that we have today. Looking at the contribution from online, a quarter of the business was pretty much running on omnichannel for Q3, a high of 24%. Year-to-date, we are 20%. And looking at how these distributes across segments and country, obviously, fashion had the highest share with 30% for 2 reasons. Obviously, a higher heat in terms of retail performance on fashion, as we just heard. But also particularly strong performance on O2O channels as well as online. Hardline had a strong 23% and [ 47% ], which is much higher than the market penetration. In terms of country performance, Thailand overall, 24% up to September. Vietnam, 9%, very strong growth in Vietnam in terms of our omnichannel penetration, and Italy at 5%. All these distributes compared to last year, we saw that fashion had a drop of 7 percentage points in terms of share in lieu of a growth in hardline, particularly in stay at home categories and new product launches. As well as food, particularly driven by quick commerce performance from a 9% share in last year compared to 12% this year. In terms of country share, very similar to previous. Obviously, Italy, gaining 1 percentage point because they were starting from a much lower base. Next, please. In terms of omnichannel growth, as we can see, compared to pre-COVID situation in January 2020, we think that O2O channels have pretty much [ quote ] the growth that we have. So that's been an extremely, extremely powerful development driven by personal shopping, social commerce, chat and [indiscernible]. Looking at online, still very, very strong growth with double since pre-COVID state. Most of it is organic. And we had on online as well a much better conversion and much stronger organic traffic experienced over September. Particularly, this is driven by consumer shift, as customers have been now more used to buying online over the last few months. Looking on the right-hand side in terms of our O2O channel performance. If you see this height, the store closure over the third quarter, we still saw a good growth in channels like personal shopping and PC/BA, which is our Product, Consultants and Beauty Adviser channel. As well as the ordering. So despite the stores being closed, we reached a 56% growth versus previous year as well as a 55% growth versus previous year. And no surprise in terms of social commerce, triple-digit growth at 134% versus previous year. Looking a little bit more in detail. Our Central app still, it's the strongest proposition that we have in the market. We've seen now nearly a 70% share by -- taken by the app in online sales, bearing in mind that we launched late December last year. We now have 4 million downloads on the app and growing month-on-month, and we are happy to say that our conversion is twice the benchmark in the market. So that's extremely healthy. We launched recently as well The1 log in, so our loyalty proposition log in. We're about to launch as well burn points. So that would be addition services and benefits for our customers. We have increased the numbers of at-home campaigns that had a very strong result in terms of conversion as well as expand our 3-hour delivery proposition, which is growing on a daily basis. Just also to mention that by online every store process is also being launched. Obviously, we're seeing this service growing as we open in [ RioCan ] disclose. On the click-collect basis, 1 hour click-and-collect was launched earlier during the year. Just to update you, now 30% of all collections are done within 1 hour. Important to mention as well in terms of trading performance of the Central app. We have increased the number of brands participating in our brand campaigns as well as the frequency of these campaigns, which are driving our top line. We also launched flash sales for specific SKUs for specific products targeting our first-time buyers, which is also seeing a strong performance over the quarter. From an O2O channel's perspective, in Q3, we saw the highest performance seen by these channels. We are extending continuously our customer coverage in terms of number of contracts as well as a number of subcontracting the customers in our stores. Personalization is also something that we are now enabling through data for this type of channels. I'm very pleased to say that from a Net Promoter Score point of view, we had more than 85% customer satisfaction. In terms of e-ordering, we are extending to 500 stores in Q3 and Q4 across Powered by Supersports, Central, Robinson and our partners. And in Q4, we will launch as well e-ordering for B2S and all locations for Supersports. The ordering counter and digital showroom will be also filed in mid-November. And then last but not least, all our brand.com channels, happy to say that we launched over the Q3 Fitflop and Guess, and that we have more partners with Fossil, Crocs, Reebok, Fila to launch over the next quarter. Next, please. Just to give you also an overview in terms of performance by market. So in Thailand, our Tops app is now having a share for food on 52%. So very strong share as well with 3 million downloads. Happy to inform as well that from a Central footfall campaign, we are increasing now the level of frequency for customer purchases and also focusing on international import categories, driving a much higher gross margin. We have also launched in tandem, fresh purchase campaign, so focusing on fresh products, also increasing our repeated frequency and also focusing on gross profit. On quick commerce, a very strong performance. We have now 2,000 shops participating on quick commerce, either through Foodpanda and through Lineman. And 6x sales year-on-year performance based on to date results up to September. We have added additional categories in pillar stores as well, such as Healthiful and PETSTER that are also seeing very, very strong response. Finally, we have launched as well Personal Shopper, which is available now in 143 Tops and Central footfall stores. In terms of Vietnam, again, very, very, very strong performance on the app on food. We have 36% share of sales coming from the app and 2 million downloads year-to-date. Conversion as well, 3x higher than our benchmark on the market in Vietnam. So very, very, very strong results. And finally, from our GO! app, we reached 1 million users in 6 months. So really, really important customer acquisition for the app in Vietnam. And overall, we reached a record high of 23% of omnichannel sales contribution in September for hypermarket business.

Thank you, Khun David. So on the second key growth driver area, I'd like to share the progress of our physical store expansion and renovation. After 9 months, so our store expansion has been on target, [ to sum ] by country on the table. So let's go over our Thailand first for the big store format. We have opened for Thaiwatsadu store. 2 were actually open in this third quarter and 1 more Srisamarn was actually opened yesterday. And we'll have 1 Robinson Ayutthaya opening in November. And for the medium and small store formats in Thailand, 35 supermarket Tops Daily and Tops market were open of the 47 target for the year. And for the nonfood specialty store on the fashion and hardline, we have also already opened on 47, about half of the target of the 90 stores. Onwards for Vietnam to the big store format, 1 GO! mall and hyper were open last quarter, and we'll have 2 more GO! malls and the GO! hypermarket ready for the opening in November and December. And for Italy, there's no new store, but we continue to renovate the key flagships. So at the end of September this year, we have added 5% of the salable area to a total of 3.2 million square meters and grown 8% of our net leasable area to over 640,000 square meter. Next, some folders to show you the color of the new store that we have opened. This one is to Thaiwatsadu that we open up countries in Ayutthaya and Songkhla this third quarter, the big format area of 14,000 square meters. Next one is on the food side in Thailand, we have a total of 9, 1 Tops market and the 8 Tops Daily. Overall, we have not opened on any store in Vietnam due to the situation of the pandemic, but we'll have a lot more kick off in the quarter 4. And this one, just showing you some color of the Robinson Ayutthaya, which is now getting ready. The construction is almost 100%. It will be open end of November. Next one. This one, as I mentioned, the Thaiwatsadu. This is the new one and the fifth store that we opened, the first hybrid store that we combined with Thaiwatsadu and the Baan & Beyond format together opening already just yesterday. And this two mall you're seeing on the photos are the new GO! mall Ba Ria and Thai Binh. You see the construction is 100% completed. It's waiting for opening end of November and mid of December this year. We have the mall and the answers hypermarket about 30%, 40% of the area as [indiscernible]. And this slide shows the store renovation progress as well. Similar to the expansion as the progress is on plan this year, the refurbishment of the flagship department store in Thailand and Italy are ongoing. Most of the launch of the [ 6, 7 ] flagships will be expected mid of 2022 next year. And so this year, we will have 1 rebranding of Robinson Department Store to Central Department Store in Khon Kaen. That is expected to launch in December. On the Vietnam side, there are a lot of renovation completed for both the mall side and the hypermarket side, as shown at the bottom. So by the end of the year, we'll have around like 40 GO! malls. 13 will be rebranded to GOs. And 37 hypermarket, and 7 Tops Market. And this year, we have done 8 malls rebranding versus last year, which 5 completed, and will pick up on this renovation phase for next year onward as well. So this show -- just quickly on the 6 malls that we have renovated all over the country that we have said the completion was done in third quarter already. Next one. And going on, these are the photos of our department store that we have refreshed our stores. We have added and increased the lifestyle space and the brands. The hybrid example shows is Rama 2, [ live car and Central ], which the renovation has done and finished on phase by phase by stone. So we're opening as we completed ahead. So onward to the next store driver area, I'll pass on Khun Ty to update you about the new store format, the energy and the recent JV investment.

Apart from the 3 growth -- can you go back one? Apart from the 3 growth drivers just now we mentioned, the other 2 that we have for our growth pillars that creates top line and bottom line are these. The first is the -- we develop new formats all the time or we bring in new brand distribution. So for the last 9 to 12 months, apart from going through another COVID in the countries and cost saving or focusing on online, our team is also focused on developing new formats, the last 12 months. And we have launched 1 new format already, which I will talk about soon. And in the next 12 months, we'll be launching a few others as well. So each of these formats are very sizable. And we will be sharing more information with you early next year. So today, I'll only talk about one, which is called go! WOW. The fifth driver is the M&A and the synergies. So we have done 1 major acquisition in COL this year, but we will continue to acquire new businesses, either within Central Group ecosystem or externally. So this is the new format that I mentioned. It is our newest baby that we launched for Thailand in the hardline segment. The reason we decided to enter this market is because the size of the market is quite good. It's at THB 10 billion, and it's growing extremely fast at 25% per annum. However, the market is very fragmented. But we believe that we will be the top 2 players in about 2, 3 years with the speed that we're going to expand. The key success factors of our format will rely in the location that we will get, the prime locations in CG ecosystem, the time we want to do our solid sourcing. And also, we will construct these formats at a low-cost amount using the materials that we saw in Thaiwatsadu. The size of the format where the stores will be about 200 to 500 square meter. We have already opened 7 in August and September and doing fairly well. And we will continue to open another 11 in Q4. The target customers are family group students and first jobber and freelancers. And the most important of all is our products. We will have 14,000 SKUs across 16 categories. All the benefits that we'll achieve is acquiring new customers from this mass kind of format and achieving better GP as we pool purchase with other CRC BUs. And the next slide, which I think we went through this. The next one is the COL. As mentioned, we acquired it at the beginning of the year. It has 200 stores and marketplaces and e-book. We have got synergies already by adding 57,000 SKUs from CRC on the office marketplace and generating incremental sales. We also rolled out to 1,000 outlets. We input B2S products into Tops and CFM. And again, that's also incremental sales for the group. There's also synergies that we're working on buying, co-buying projects with Thaiwatsadu. And although we have not shown here, we achieved a cost saving in terms of our team, about 10%, by streamlining the teams within the COL and also CRC. And if you look at the bottom, with the higher-margin business, we're actually able to increase EBIT margin for hardline by 300 basis points by bringing this business in. The second one is our hidden gem. Not many of you know this, but in COL portfolio, there's a business called meb. meb is Thailand's largest e-book and web novel online retailer with a market share of about 55%. And the market itself is growing about 20% per year. meb has achieved astounding top line growth, as you can see on the left side. We hit THB 900 million in 2020, and it grew 6x in 3 years. The company is very profitable and healthy margin. It currently has about 16 registers, users with MAU about 6 million over 2 apps, which is the meb and the readAwrite. So CRC and COL and meb is working closely together to closely accelerate the growth in the ecosystem. And I raise this point because, as you know or may not know, there is a similar company that actually IPO-ed last month in the [ Maye ]. The platform is called [ KaweBooks ]. And if you want to see the value that we actually can achieve from meb, you can go look at their multiple, where pretty much the margins are the same, but our top line is about 10x bigger than that company. It's suit for comparable reason. Second, next. In terms of the JV and investments, as I mentioned, this is a big growth pillar for CRC. We continue to search a small, mid- and large-sized company to acquire, again, coming from CG ecosystem or externally. We look at 3 perspectives. One, of course, is the financial return of the company as is and when it comes into the CRC ecosystem. The second is the target company itself. If we bring the company in, can we use the CRC ecosystem to accelerate the growth of top line and attain the cost synergies? And on CRC point of view, do we achieve any incremental value by getting new products, larger customer base or enlarging the channel? And lastly, we also support the Thai startup community and would like to invest more to grow this local new economy business. So that brings me to the right side, the Mercular. Mercular, some of you may heard, is the investment that we did 2 or 3 months ago. Mercular is very attractive. It's a huge business opportunity to grow, and is in a large market segment of the hobby. Mercular is a hobby lifestyle community commerce platform that caters for the millennials and the Gen Z. It sells audio, computer, gaming and gadgets. Unlike the e-commerce that we have, Mercular drives its followers conversion and sales using the content. So for example, the written content, the video. It also builds a community platform. So it draws millions of customers in and it has expert advisers to have customers choose and compare products. So you can look right now, we have 300 brands and 19,000 SKUs and 1.5 million traffic. So we believe that bringing Mercular into our ecosystem, we will have synergies in Power Buy and department store and also Central app. So again, we'll be looking also to learn how Mercular does its ways and approach in terms of the community-based platform and utilize it in CRC as well.

Okay. So thank you, everyone. I hope you found this afternoon very informative and insightful. I think before we end the session and proceed to our usual Q&A, I would like to summarize the key takeaways of our -- of all that you have heard today. I think we managed through Q3 pretty well. I must say, despite being hard hit by the pandemic outbreaks, both in Thailand and Vietnam. Our [ clarity ] and commitment, capability and our behavior are key to our success. Being the first mover is good, but the successful first mover is the best. And has the insight and foresight interaction is our key success. In our portfolio, we have so many we bought that possible to spin off. With solid financial position, we will continue to invest in our future with a good momentum that's going to define the next chapter of CRC. And moving forward, we foresee a bright future, and CRC is well positioned to unlock full potential and capture a robust growth opportunity. Thank you.