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Huaneng Power International Inc
Earnings Call Analysis
Q1-2024 Analysis
Huaneng Power International Inc
The first quarter of 2024 was stellar for Huaneng Power International. The company reported a year-on-year improvement in operating results, reaching record highs. The consolidated operating revenue was CNY 65.367 billion, marking a modest increase of 0.15%. However, it was the net profit that truly stood out, ballooning by 104.25% to CNY 4.596 billion. The earnings per share also saw a significant rise from CNY 0.10 to CNY 0.25.
Huaneng Power maintained a growth trajectory in power generation for Q1 2024. The company increased its domestic on-grid power sales by 5.63% to 113 billion-kilowatt hours. Despite a slight decrease in average utilization hours from 919 to 908, the company’s coal-fired units operated at higher capacities, particularly during the heating season. Renewable energy installed capacity also continued to expand.
The average tariff saw a decline to CNY 497.97 per megawatt hour, down 3.99% year-on-year. Conversely, the unit fuel cost decreased by 12.63% year-on-year, reaching CNY 297.08 per megawatt hour. This reduction in fuel costs was pivotal in ensuring profitability amidst falling tariffs.
The transition to renewable energy was a key focus, with 1.6 gigawatts of new capacity added, split between 869 megawatts of wind power and 737 megawatts of solar power. The total installed capacity now stands at 137.12 gigawatts, with renewable energy accounting for 32% of the total capacity.
Huaneng Power operates across 21 provinces, with 17 of them reporting profits. However, the company faced losses in Shanxi (CNY 17 million), Gansu, and Yunnan (CNY 4 million).
The wind sector was particularly profitable, with a net profit of CNY 1.9 billion, while the coal sector generated CNY 1.77 billion in profits. The gas sector contributed CNY 120 million, and the solar sector added CNY 300 million. However, the hydro and biomass sectors broke even.
Looking forward, the company aims to enhance operating performance, continue its focus on high-quality renewable energy development, and explore innovative financing options. They intend to reduce fuel costs further and stay aligned with government policies on carbon neutrality.
Tariffs are expected to decrease further in 2024, estimated at CNY 492 per megawatt hour. The company plans to tackle challenges such as decreasing tariffs and curtailment in the renewable sector through rigorous market research and strategic operational adjustments.
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Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International, I would like to welcome you all to the conference call regarding the first quarterly results announcement of 2024. [Foreign Language] Now may I introduce the management of the company today. [Foreign Language] [indiscernible], Executive Director, President and Chief Accountant, Mr. Juan Lisi [Foreign Language] Independent Director of the company, Ms. Zhang in Antonia. [Foreign Language] Fotolia Monsanto, Vice President, Mr. Tim Hao, so Nihal. Sunnis, Hanacans, Vice President and Board Secretary, Mr. Guan Chahan Juan on Nia. Puttini, Stanich, Vice President, Mr. Su Tanisia.
People in charge of the related departments are also joining us in this meeting. [Foreign Language] First of all, Executive Director, President and Chief Accountant, Mr. Huang will review the business performance for the first quarterly results of 2024 followed by the Q&A session. [Foreign Language] May we have the honor to invite Mr. Huang to review the business performance, and Ms. [indiscernible] to conduct the English interpretation. Please.
[Foreign Language]
Ladies and gentlemen, good afternoon. Welcome to the first quarter results conference call of Huaneng Power International. Yesterday, the company has released the first quarter results. Please let me give a brief introduction.
[Foreign Language]
In the first quarter, the company continued to enhance operating quality and efficiency and seize the market opportunities. The company achieved a significant year-on-year improvement in operating results and reached a record high, which laid a solid foundation to complete the company's tasks and operations and development.
Under the Chinese accounting standard, the company achieved a consolidated operating revenue of CNY 65.367 billion, increasing by 0.15%. Net profit attributable to company's shareholder was CNY 4.596 billion, increasing by CNY 2.346 billion or 104.25%. The earnings per share was CNY 0.25, increasing by CNY 0.15.
[Foreign Language]
In terms of production, the company reached the -- research to the power market and maintain the growth in power generation. Coal-fired units operated at higher capacity in heating season, while renewable installed capacity continued to increase, resulting in growth in power generation. The company's domestic on-grade power sales was 113 billion-kilowatt hours, increasing by 5.63%. The average utilization hour was 908 hours, decreasing by 11 hours in accelerated reform power market influenced by factors such as relaxed supply and demand balance and declining coal prices. The average tariff was CNY 497.97 per megawatt hour, decreasing by 3.99% year-on-year and 1.58% quarter-on-quarter.
[Foreign Language]
In terms of coal supply, the company sees the opportunity of declining market prices, strengthened the high-quality performance of long-term contracted coal sees the favorable opportunity of spot procurement and continue to optimize the supply structure. The unit fuel cost of the first quarter was CNY 297.08 per megawatt hour, a year-on-year decrease of 12.63% and a quarter-on-quarter decrease of 3.41%.
[Foreign Language]
In terms of development, the company has continued actively responded to the relevant policy and national -- of national energy transition adhered to low carbon transition strategy and steadily push forward the development and construction of renewable energy projects. In the first quarter, the company added 1.6 gigawatts of units, including 869 megawatts of wind power, 737 megawatts of solar power. The company installed capacity reached 137.12-gigawatts.
Wind and solar capacity reached 3 -- 30.21 megawatts -- gigawatts. Low carbon clean energy capacity increased to 32%.
[Foreign Language]
In terms of OC operation, Tours Power moved in line with policy trends optimize market competition strategy and continuously strengthened cost control to achieve better operating results. The profit before tax was CNY 806 million in the first quarter. The Sakiwa power plant in Pakistan remained a stable operation, realizing a profit of CNY 155 million.
[Foreign Language]
In the second quarter and last half of the year, the company will focus on quality and profitability, continued market research, contented safe production, green transition and efficiency improvement, moving forward the tasks of operation and development. The company will continue the clean energy development and accelerate the transition, improve the quality of long-term contracted coal sees the market opportunity of spot market and optimize the supply and inventory structure and further reduce the fuel cost.
Research power market trends take measures to cope with the impact of curtailment and decreasing tariffs, strengthen the fine management, enhanced competitiveness and strive for profitable power generation, explore innovation financing and use green financial policies to secure funding and redial cost. The company will maintain stability while seeking progress and enhance our operating performance and continue a high-quality development.
[Foreign Language].
Now my colleague and I would like to answer your questions.
Thank you.
[Foreign Language] Thank you, Mr. Huang. Here we come to the Q&A session. [Operator Instructions] The first question comes from Luciana of Space.
[Foreign Language]
I have 3 questions. First, the company has announced the average tariff was 498 per megawatts. The unit fuel cost was 297 per megawatts. So what would be the company's whole year guidance for the average tariff and unified cost in 2024?
Second, in the first quarter, the company's capacity growth for solar projects have exceeded the profit growth for solar. So could you explain the reason for that?
My third question is, in the beginning of the month, there are some rumors that the renewable energies, 95% consumption rate will be released. And what will be the impact to the company?
[Foreign Language]
In the first quarter, the tariff has decreased by 4% year-on-year and the tariff was affected by the following factors. First, the power consumption rate nationwide have increased. The hydro output having -- was better than last year.
Renewable energy have participated in the market and the renewable capacity have grown. The coal price has declined and the competition in the power market has been intensified. And the two-tiered pricing scheme has been implemented in the power market. All those factors have reflected in the market and the power generation have increased while the tariffs have decreased.
In the whole year 2024, the company estimated that our average tariff will decrease to CNY 492 per megawatt hour.
[Foreign Language]
The company has announced unit fuel cost to combine the coal unit -- coal-fired units and gas-fired units. And for our coal sector in the first 3 months, the unit fuel cost was 288 per megawatts, decreasing by 13% year-on-year. For the standard coal price tax excluded, our coal sector had CNY 978 per ton standard coal price decreasing also by 13%.
The company won't have detailed guidance for the whole year's infield cost. Please make your judgment based on the market coal price trend as well as the company's coal supply structure.
[Foreign Language]
In terms of the solar sectors profit increased we can see the profit of solar sector have increased by 7% year-on-year, while the power generation for solar sector have increased by 74% and capacity have raised by 98% year-on-year. So the growth in the power generation have lower than the growth in the solar capacity.
And that was mainly because the utilization hour has decreased utilization hour in the first quarter was 240 hours. The figure last year was 270 hours. And this year, the curtailment rate for solar power have increased. This year's number was 7.7%, while it had a 4.6 percentage points increase comparing to last year. And the tariff in the first quarter was CNY 434.6 per megawatt hour, decreasing by 9.5% year-on-year.
[Foreign Language]
The company have noticed all these issues and the company have taken effective measures to tackle with this problem.
[Foreign Language]
In terms of the company's renewable energy development in the future, the company's renewable capacity target was in line with the government pace and scale of the long-term plan. And the company made a prudent decision when investing in the renewable energy.
At the beginning of 2022, the company has announced its 45 years plan and the company have always keep close attention to the government policy changes. Currently, because of the policy changes, we are facing some consumption pressure in the renewable energy sector. The company will continue to keep a close track on the changes and take measures.
[Foreign Language]
The company will evaluate our 145 years plan later this year. And from our initial evaluation, we can see that our goal as the low carbon clean energy will reach 45%. Our total capacity is going to be achieved by the end of the 145 year. And in the future, the company will continue to move in line with the government policy of carbon peak and carbon neutrality and make profit and efficiency, our first priority and continue to push forward the development of renewable energy.
[Foreign Language] Now question comes from Leaning of Huatai Securities.
[Foreign Language]
I have three questions. First, could you talk about the company's coal consumption rate in the first quarter? And what is the company's ongoing tariff for our coal sectors in the first quarter? And what is the tariff breakdown to the on-grade base tariff and capacity tariffs? And what is the year-on-year change?
Second, in the first quarter, the company's gas fired units sound profitability. So could you talk about what is the reason for that? Is that because of the tariff changes? Or is that because the cost changes?
Third, in the first quarter, what is the company's services payment? And is there any impact from the capacity payments to our series services receivables?
[Foreign Language]
Please let me answer your question about the company's coal consumption rate. So in the first quarter, the thermal coal consumption rate was 279.68 gram per kilowatt hour and the number for the coal-fired sector was 287.5 gram per kilowatt hour. It basically remained stable comparing to last year and only have a slight increase.
Here are the reasons for that. First, the thermal power or especially the coal fire power have deeply participated in the peak adjustment and the flexibility services that help to -- that helped with the security and stability of the power system in new power system.
However, the coal consumption rate have increased. And the second reason is in the first quarter, the company have a heat supply operation smoothly and about the same level as last year.
[Foreign Language]
In terms of our tariff for our coal sector, the average tariff was CNY 447 per megawatt hour, decreasing by 4% year-on-year. The market base ongoing tariff was CNY 444 per megawatt hour. It has 12.5% tariff hike comparing to the benchmark and the capacity payment was CNY 2.16 billion that was include the power plants in Una and Beijing. And for the unit tariff payment, it was CNY 23.42 per megawatt hour.
So plus the capacity tariff, the average tariff for the coal sector have 18.41% increase comparing to the benchmark.
[Foreign Language]
In terms of our profitability in cfd coal-fired sector, both is mainly due to the tariff and the unit fuel cost. The average tariff for our coal-fired sector was CNY 760 per megawatt hour. It has a CNY 9 per megawatts. And the unit fuel cost of our gas fire sector was CNY 412 per megawatt hour. It has a CNY 13 per megawatts decrease.
[Foreign Language]
The main reason for the fuel efficiency increase is because the -- some of our units have a renovation of the flue gas waste heat utilization. And another reason is the heat value have increased for some of our units. So the marginal contribution have increased to CNY 260 per megawatt hour. It has a 9% increase.
[Foreign Language]
U.S. on. In terms of ancillary services in the first quarter, the company had received CNY 867 million of ancillary services provided. And it has CNY 74.53 million increase. And for the peak load adjustment, the company's revenue was about CNY 814 million, including coal, CNY 1.074 million -- billion. And the wind sector have a cost of CNY 245 million. Solar sector have a cost of CNY 19 million. And for frequency adjustment, the company had an income of CNY 53 million. Thank you.
The next question comes from Hong of Gutaj Securities.
[Foreign Language]
I have 2 questions. First about the company's unit profit. As we compare the number in this quarter to the third quarter last year, you can see the CNY 978 per megawatt. Unit fuel cost was maintained the same. However, in the third quarter, we have -- in the first quarter, we have a lower tariff.
So in the first quarter, we have CNY 50 per megawatt hour unit profit comparing to the third quarter last year. So could you tell us the reason for that? And my second question is about the company's income tax. The company's income tax was about 17%. And it was lower than the last year. My personal perspective is that, that was because of the deferral tax. So could you talk about what is the company's guidance for the income tax this year?
[Foreign Language]
So first, let me answer your questions about the comparison between the first quarter of 2024 and the third quarter 2023. So as the coal sectors, standard coal price in this quarter was CNY 978. it was about the same level to the third quarter last year.
However, the marginal contribution in the first quarter of 2024 was CNY 134 per megawatts per hour, while in the third quarter, it was CNY 116 per megawatts hour. So the marginal contribution was different, and we can further break it the profit to our power sales. So in the first quarter, it was CNY 30 per megawatt hour.
In the third quarter, it was CNY 26 per megawatt hour. Another reason is the difference between the unit fuel cost and the coal consumption rate. So we can see because of the quarterly differences, the coal consumption rate was different in those 2 quarters.
[Foreign Language]
So about the guidance for our income tax First, our policy in the tax haven't changed for now. The reasons are as follows: First, the profit and the profit and losses structure have changed for the company? And second, because of the -- some projects that made the -- losses have a term possible this year.
So there is some accounting arrangements in the deferral tax. So because of the accounting method, there can be some difference between this quarter to other quarters. So as for our sectors breakdown. For wind sectors, the profit was quite stable.
The solar sector, as I just said, the profit increase has been lower than the capacity increase. And because the capacity was relatively low in our whole structural mix, the profit hasn't had any impact to the tax. As to our gas sector and the coal sector, there is a 25% tax, income tax. And in the first quarter, there is no great difference in our deferred tax arrangements.
However, in the second quarter and the third quarter, there might be some difference in the arrangement in the deferred tax assets. So as I said, first, the policy hasn't changed only the structural structure have changed. Second, some accounting arrangements and deferral tax may impact.
[Foreign Language]
So the heat supply revenue has been included in our gas sector's profit. I'll give you the following numbers.
[Foreign Language]
The marginal contribution from our heat supply services, this -- for the first quarter this year, it was negative CNY 180 million. In the first quarter last year, it was CNY 560 -- negative CNY 560 million. So the efficiency of the heat supply have improved.
[Foreign Language] The question comes from Zhongshu Yin [indiscernible] please.
[Foreign Language]
I have 2 questions. First, what was the average tariff for our wind sector in the first quarter? And what was the market-based tariffs? And what was the discount comparing to the approved tariff? And could you also talk about the discounting -- discount situation of our renewable tariff Second, could you please give us the breakdown of our net -- our equity and our net profit attributable to shareholders to different energy sources.
[Foreign Language]
The average tariff of our wind sector was CNY 521 per megawatt hour, decreasing by 4.9%. The average tariff of our solar project was CNY 434.6 per megawatt hour, decreasing by 9.6%.
[Foreign Language]
The market-based wind power sales account for 33.8% of our total wind power sales. It has a 6.1% increase year-on-year. And the market-based tariff for wind sector was CNY 441.2 per megawatt hour. It has CNY 43.4 per megawatts per hour decrease.
[Foreign Language]
For our solar sector, the market-based power sales account for 31% -- 31.4% of our total power sales. It has a 11.4% increase. The average tariff was CNY 431.4 per megawatt hour. It has a CNY 75 per megawatts hours decrease.
[Foreign Language]
The equity breakdown was as follows. The total equity was about CNY 176.8 billion for -- at the end of the first quarter, the cold sector's equity was CNY 69.6 billion. Gas sector, CNY 12.6 billion, wind sector, CNY 56 billion, solar sector, CNY 24 billion, Hydro sector CNY 100 million, and biomass sector, CNY 100 million.
[Foreign Language]
For the numbers by the end of last year, for the coal sector, it was CNY 66.9 billion, Gas sector, CNY 12.2 billion, wind sector 52.6 billion, solar sector, CNY 22.3 billion and biomass and hydro sector was about $100 million.
[Foreign Language]
For the net profit attributable to shareholders, for the coal sector, it was CNY 1.77 billion, Gas sector 120 million, wind sector CNY 1.9 billion, solar sector, 300 million, and it's breakeven for hydrosector and biomass sector.
[Foreign Language]
And the number by the end of -- for the whole year 2023, the coal sector, it was negative CNY 1.4 billion. For the gas sector, it was CNY 200 million, wind sector, CNY 5.1 billion, solar sector, CNY 1.6 billion and a breakeven for hydro and biomass sectors.
[Foreign Language] The question comes from Guangzhou of Tianfu Securities.
[Foreign Language]
I have 2 questions. First, in the first quarter, the company's profit before tax for wind's sector was -- the growth has been larger than the capacity growth. So could you talk about the performance of our wind sector, including the curtailment and power generation?
And second quarter is about our improvement in the coal sector. Could you talk about the loss situation and what power plants have basically breakeven in the first quarter?
[Foreign Language]
So the utilization hour of our wind project in the first quarter was 651 hours, increasing by 41 hours year-on-year. [indiscernible] as hours for solar was 240 hours, decreasing by 30 hours. The curtailment rate for the wind was 4.8%, increasing by 1.5%. Curtailment for solar was 7.7%, increasing by 4.6%.
[Foreign Language]
As for the company's loss situation, the company has operated a power plant in 21 provinces. The 17 of them have made profit while a loss in the first quarter, including the Central North in subsidiaries, it have a slight loss. The Shanxi subsidiary have a loss amounted to CNY 17 million. Gansu made loss and the Yunnan subsidiary have about CNY 4 million loss.
[Foreign Language]
As for the coal sector, the company's coal sector have made a CNY 2.8 billion profit this year, and it had a great improvement comparing to last year.
[Foreign Language] The next question comes from [indiscernible]
[Foreign Language]
I have 3 questions. First, could you provide us with the procurement price of raw coal in the first quarter? And what was the heat value? And what was the year-on-year change comparing to same period last year.
Second, as the company have an estimated guidance for the average tariff, what was the company's considerations? Third, is there any progress made about the market value assessment? Could you tell us more detail about that?
[Foreign Language]
In terms of our fuel procurement in the first quarter, the company had purchased 51 million-ton soft coal with an average price of CNY 673.32 per ton. It has a 9.99% decrease comparing to the same period last year. The average heat value was CNY 4,428 [indiscernible]. It has CNY 147 [indiscernible]
[Foreign Language]
About the company's guidance in tariff, the company has signed the mid- to long-term power purchase agreement amounted to CNY 292.3 kilowatts hour with an average price of CNY 465 per megawatt hour. It has a 17.1 percentage tariff hike include the capacity payment.
[Foreign Language]
For the coal sector, the company has signed CNY 278.7 billion kilowatts hours, it has a 17.7% tariff hike considering the capacity payment.
[Foreign Language]
This year, we estimated that the power consumption nationwide will increase. And the hydro output will increase by a large amount comparing to last year. The renewable energy was more incorporated in the power market and the power generation have a rapid growth.
And the coal price have entered a downward trend and the market competition have been intensified. And considering the 2-tiered pricing scheme for the tariff, we can see the market-based tariff for coal-fired have decreased. That further dragged the market-based tariff for renewable.
So for the whole year, we estimated that the price -- the tariff will decrease. And the coal tariffs will maintain stable and have a slight decrease while the renewable energy tariff will have a significant decrease.
[Foreign Language]
After the SEC have announced the assessment for the market value appraisal, the company have attach great importance to the stock price and our market value and the company have -- keep a close track to the detailed policy of the market value. For now, there is no detailed policy or indicators has been announced by the government for the company and also the management have always take the market value very important in our managing and operation.
The company will keep track on our stock market price. And as for the market value management, we think the core is the value creation. That is to say the company needs to have better performance, a better transition and better payback to our shareholders. The company also keep close attention to our information disclosure and our communication to investors.
So that will help the realization of our market value. And the company will also take appropriate measures using some financial instruments to help to realize our market value. After the SAS Act announce a more specific strategy or rules for the assessment, the company will give a more detailed information.
[Foreign Language]
I have a follow-up question. Could you give us the number of the company's heating supply and the coal consumption for heat supply.
[Foreign Language]
The company's heat supply was about 168.8 million gigawatt hour. It has a 10.9% increase.
[Foreign Language]
Talent has the coal consumption for the heating supply, we'll give you after this meeting. Thank you.
[Foreign Language] Next Question comes from Szeto of Gosun Securities, please.
[Foreign Language]
My question is about the company's wind power sector. So in the first quarter, the company's profit of wind have improved greatly. Was that because costs have decreased? Or is the seasonal difference?
[Foreign Language]
First, about the company's profitability in wind sector, I will give you a detailed analysis from our capacity, our power generation and our tariffs. From the capacity side, the company's capacity of wind was 16.37 gigawatts. It has a 20.54% increase. And for our power generation, it was 10.028 kilowatts hours. It has a 24% increase. So the increase of the power generation have exceeded the increase of capacity.
[Foreign Language]
About the company's ongoing tariff, the wind sectors tariff was CNY 521 per megawatts hours. It has a 4.9% decrease and it's mainly due to more and more capacity we incorporated in the market and other factors such as cost difference. My colleague will give you more detail.
[Foreign Language]
The ancillary service costs for our wind sector was CNY 259 million. It has -- we have spent less about CNY 25 million comparing to the same period last year.
The next question comes from Dan siting of HaiSecurities,
[Foreign Language]
I have 3 questions. First, about the improvement in our wind sector. We can see the company's utilization. Our increase have exceeded the national average. So could you tell us the regions of the company's newly added capacity? And could you give us the number of the company's capacity that put into operation and company's capacity that's put into construction?
And in what regions the company's construction located? And my second question is about the company's co purchase. In the first quarter, the standard coal price has decreased by 13%, could you give us the proportion of the company's long-term contract coal, raw coal procurement? And what is the changes comparing to the last year?
Third question is about the company's interest to minority shareholders. The company's interest minority shareholders have increased by CNY 1 billion. So could you give us the reason for that?
[Foreign Language]
About the company's capacity installation this year, the company has a 69 megawatts of wind, including the offshore wind in Shandong province about 160 megawatts for wind enjoyed, Yunnan province, about 306 megawatts and also some winds that were put into operation in Bedinan Chung.
And Fudan about the company's project that put into construction, the company 18 regions have capacity that put into construction, a majority of them are solar projects.
[Foreign Language]
The company's installed capacity that put into operation is the capacity that's been put on to the grid connection and make revenue.
[Foreign Language]
In terms of the proportion of our core procurement in the first quarter, the company has purchased 7.2 million tons of long-term contracted coal. It accounts for 54% of our total coal procurement has a 0.75% increase.
The company purchased 8.38 million tons of small market coal in account for 16.38% on the total procurement. It has a 0.91% decrease. The company has purchased 15.5 million tonnes of coal from overseas market.
It accounts for 29.61% of our procurement. It has a 0.7% increase.
[Foreign Language]
The interest to our minority shareholders increase is the proportion that our profits have increased in the first quarter.
[Foreign Language] The last question comes from Sung Kisan of Gohan Securities.
[Foreign Language]
I have 3 questions. First, could you give us the coal consumption rate and unit fuel cost in the 4 quarters in 2023? Second question is about our deferral tax. So is there any seasonal impact to our deferred tax.
Third question is about our ancillary services. As capacity of renewables have increased, why is our ancillary services decreased?
[Foreign Language]
The coal consumption rate of the fourth quarter, we'll give you after this meeting and the unified cost of our coal sector was as follows. For the fourth quarter last year, it was CNY 298 billion per megawatts hours, third quarter CNY 312 billion per megawatts hour, second quarter, CNY 329 billion per megawatts hours, forth third quarter CNY 333 billion per megawatt hour.
[Foreign Language]
There is no seasonal impact to our deferral tax. The deferred tax differences is mainly due to our anticipated or our expectation in this term and in our formal terms. So after this meeting, we'll give you more detail.
[Foreign Language]
About the ancillary services cost of our wind sector, the company's cost was CNY 259 million. It has CNY 24.82 million increase. And for our resources from peak adjustments, the total number was CNY 254 million. It has a CNY 25.4 million increase.
[Foreign Language] Thank you so much for all the questions and participation today. [Foreign Language] Finally, Mr. Huang would like to give us a summary on doing.
[Foreign Language]
Thank you for participating in the conference call. Thank you for your continued support. Here, we come to the end of today's conference call. Please contact our IR department if you have any further questions. Thank you.
[Foreign Language]
Thanks again for the attendance of the conference call regarding the first quarterly results announcement of 2024. We are looking forward to meeting all of you in our next results announcement. Thank you. Bye-bye.